The past year had been full of challenges. Global economy experienced drastic fluctuations in 2022 due to multiple adverse factors including the continuous havoc of Covid-19, the Russia-Ukraine war, tightening policy of the Fed, and worldwide supply chain disruption. In a time of dire economic situation, global warming-induced extreme weather, such as record-breaking heat waves in Europe and India as well as wildfires and floods in the United States, exacerbates the situation for governments around the world and creates greater pressure on people who are already suffering from food crisis. For human survival, there is an urgent need for governments, businesses and the public to take on more aggressive measures and come up with solutions to live in harmony with nature. Consequently, various environmental protection policies have been introduced, and the public has higher expectations for environmental sustainability actions taken by companies.

As a leading manufacturer of flexible printed circuit (FPC) materials, Taiflex has always considered environmental protection, social engagement and corporate governance as important foundations of our business strategy. We promote the use of renewable energy, and established Taiflex Green Power Co., Ltd. in 2021 to actively implement energy transition. We promote circular economy, establish recycling facilities for chemicals, and drive the recycling and reuse mechanisms of resource so as to prevent any waste and boost resource efficiency. In terms of social engagement, we actively participate in social welfare activities, and build diverse and inclusive management mechanisms in line with our people-oriented corporate culture. In response to the heightened interest in ESG worldwide, we established the Sustainable Development Committee in 2022 in hope to extend the depth of our overall ESG sustainable management plan. We set aggressive long and short-term goals, and oversee our senior executives to integrate sustainable development planning and concepts into our strategies for daily operation. By defining key ESG performance indicators and prompt the management team for implementation, we aim to respond to increasing risks and opportunities in the future with innovative thinking.

We are celebrating our 25th anniversary in 2022. In this landmark year, we have embarked on our expansion in Thailand for future sustainable development. With the advanced technology for FPC materials as well as long-term development drivers from 5G communication, metaverse and new energy vehicles, Taiflex continues to invest in the development of low carbon products and processes in flexible advanced materials, thermal management materials, and semiconductor materials. We improve the performance of materials to reduce the overall energy consumption of electronic devices. In addition, we continue to introduce smart manufacturing and improve energy efficiency in our production lines, increase the use of renewable energy, and establish Taiflex climate management initiatives to gradually drive the entire value chain toward net zero.

The challenges ahead will only be more diverse and difficult. Following the founding vision and mission, we will apply our people-oriented corporate culture and mindset in strengthening our core competencies, and develop outstanding talents to practice our business philosophy and contribute to the overall environmental, social, and economic developments.