Chairperson 
In 2023, high inflation, high cost of funds and sluggish end demand put enterprises’ operational flexibility and risk response capabilities to the test. We managed to improve our operational flexibility by increasing the proportion of local supplies across all factories, adopting flexible inventory strategies, improving product structures, enhancing production efficiency and exercising cost controls. At the same time, we increased our investments in new material research and development as well as sampling for promotion purpose, striving to expand our market share while awaiting economy recovery to take our operation to the next level. Meanwhile, we achieved a series of significant milestones in sustainable development, especially the establishment of our Thailand factory. As the concept of corporate sustainable management gains momentum, people have high expectations for companies’ ESG commitments. Taiflex has been actively promoting various sustainable development measures. On the environmental front, we implemented 29 energy-saving projects within our factories and saved 1,504,834 kWh of electricity, exceeding the annual target of 1% stipulated in the Energy Administration Act. In terms of carbon reduction, with 2021 as the base year, our total direct and indirect greenhouse gas emissions in 2023 had already met the short-term target of 4% reduction in Scope 1, and are steadily progressing towards our long-term carbon reduction target. Apart from our own carbon reduction efforts, the parent company purchased 10,000 kWh of Taiwan Renewable Energy Certificate (T-REC), actively supporting the government’s 2050 net zero target. Meanwhile, to fulfill our responsibility as a global citizen, we also installed rooftop solar power system of 430 kW in our Thailand subsidiary and signed a 10-year purchase agreement for 75 million kWh of green power certificates.
As for social responsibility, we advocate for employee diversity and equality, and actively engage with the community. We collaborate with schools to expand on diverse social welfare activities with a focus on youth development and care for children. Regarding corporate governance, in addition to complying with governance policies, we have further strengthened our intellectual property management system and obtained Level-A Taiwan Intellectual Property Management System certification in 2023.
In the future, we will persistently strengthen our core competitiveness with continued investments in the research and development of flexible electronic materials and semiconductor materials, moving towards delivering high valueadded products. At the same time, we will leverage our leading position in flexible materials and collaborate with customers to capture the driving forces of market growth and consolidate the foundation for long-term growth. We aim to lead the industry in the pursuit of excellence, and strive to build a better and more sustainable future.
Despite numerous difficulties and challenges in recent years, we have never ceased our pursuit of corporate sustainability. We remain unwavering in our goals of “renewable energy, low carbon emissions, and circular economy by 2030” as well as the “global vision of 100% renewable energy, net zero emissions, and 100% circular economy by 2050.”
For energy saving and carbon reduction, we implemented 29 projects in 2023, including “oven heat recovery,” “condensation, purification and reuse of solvents” and other technological and equipment improvements. These efforts contributed to an annual saving of more than one million kWh in electricity, which was equivalent to a reduction of over 600 MT of CO2e. Our newly-established Thailand factory is a green factory adopting green building designs to achieve RE100 target. In addition to installing rooftop solar power systems, it has planned to sign a 10-year purchase agreement for 75 million kWh of green power certificates, making carbon reduction a competitive advantage for Taiflex.
On top of implementing various ESG management and activities within, Taiflex continues to expand its green influence by teaming up with supply chain partners to carry out low-carbon management. Through carbon inventory and energy-saving, carbon reduction consultation, we deepen green supply chain practices. Suppliers are required to sign corporate social responsibility commitments and undergo green supply chain evaluations to jointly fulfill corporate social responsibilities and establish a stable sustainable supply chain.
President 
Taiflex adheres to the people-oriented spirit and continuously engages in social welfare and talent cultivation. Since the establishment of the Kaohsiung City Youth Care Association in 2011, the Company has actively participated in and organized charitable activities, such as hosting study tours in Kaohsiung for underprivileged children and teenagers, and working with the Puren Youth Care Foundation to assist disadvantaged teenagers with their schooling, injecting positive energy into the society. Taiflex is committed to becoming an environmentally friendly materials expert and advancing the development of high-tech products. We collaborate with the College of Semiconductor & Advanced Technology Research of National Sun Yat-sen University to nurture technological talent for the industry
Corporate social responsibility has always been a serious commitment to Taiflex, as evidenced by our active involvement and execution. We were recognized as an outstanding company in the “Proactive Evaluation on Occupational Health and Safety Index Disclosed in the Sustainability Reports” conducted by the Occupational Safety and Health Administration. Moving forward, we will continue to develop innovative solutions through interdisciplinary cooperation, and implement the concept of corporate sustainable development to instill sustainable values in our corporate culture.
