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.