Message from the Chairman

The United Nations World Meteorological Organization pointed out in the "State of the Global Climate Report" that 2023 was the hottest year on record, and 2024 is very likely to set a new record again. In the future, high temperatures brought about by climate change will continue to occur, causing serious impacts on the global environment and human life. The global economy has been tense since the COVID-19 pandemic in 2019, the ongoing geopolitical conflicts in the past two years, record inflation, climate disasters and other events and variables continue to deepen the doubts about the outlook of the global economy. In addition to changing people's way of life, these have also posed severe challenges to businesses and tests the resilience of business operations.

After 45 years of business, ABC-ATEC has always upheld the ideal of "Group entrepreneurship," and continued to forge ahead in a volatile business environment. In 2023, ABC-ATEC continued its sustainability efforts and published the fourth "Sustainability Report" to demonstrate its firm determination to become a world-class passive electronic component manufacturer. In recent years, the risks posed by climate change to the environment and people have intensified. How to mitigate climate change has become a common issue around the world. As a member of the global village, ABC-ATEC is also making great efforts to reduce greenhouse gas emissions. In 2023, ABC-ATEC has for the first time proposed the group's carbon reduction targets: The recent goal is to keep temperature rise within 1.5°C, and we  committed to reduce Scope 1 and Scope 2 emissions by 42% by 2030 compared to the baseline year of 2021, and to achieve net-zero emissions by 2050. In pursuit of this goal, we launched the renewable energy utilization strategy in 2023. Besides green power procurement, we have also built solar panels in the factories for self-generation and self-use. In the future, we plan to gradually increase the proportion of green power procurement and solar panel installation to reduce greenhouse gas emissions in order to achieve the goal of net zero emissions and demonstrate ABC-ATEC's environmental responsibility.

R&D and innovation are the driving force for ABC's sustainable development. In order to respond to customer needs and the ever-changing international market, ABC has medium and long-term plans for future product expansion and investment. Our forward-looking plan includes the establishment of a plant in Vietnam, active deployment in the U.S. market in response to geopolitical policies, and the establishment of an industry-academia cooperation project with Kansas State University on electric vehicle charging piles and unmanned aerial vehicles. In terms of product development, the Low Temperature Co-fired Ceramics (LTCC) production line layout of ABC-ATEC is ready, and trial production will begin in 2024 to provide customers with brand new products and services, expand the sales map, and to lay the groundwork for ABC-ATEC's vision of "NTD 10 billion in revenue within 10 years" with excellent manufacturing and professional services, moving towards becoming a world-class supplier.

As a major manufacturer of inductor components, ABC-ATEC not only provides high-quality products, but also strengthen competitiveness. The Company is also devoted to take on corporate social responsibility. Recently, we collaborated with National Taipei University to open an R&D center to bring more innovative value to society through talent cultivation and technology R&D. The "ABC-ATEC and National Taipei University Joint R&D Center" was launched in June 2023 at National Taipei University Sanxia Campus. It aims to help deepen the university's research capabilities and allow ABC Taiwan Electronics to strengthen its forward-looking technology deployment. Resources and talents are the key to technological innovation. Industry and academic institutions need to work together. The establishment of the R&D Center enables the integration of the professional knowledge of academia and the practical industry experience of ABC-ATEC to create a win-win situation for industry and academia.

At present, ESG has become a global trend and a corporate development trend, and it is also an important indicator for corporate sustainable development.  ABC is steadfast in its commitment to become a diversified and sustainable business. With a vision to "To create and develop a premium inductive components," the Company aims to expand its operational advantages and enhance its competitiveness. It continues to integrate ESG (Environmental, Social, and Governance) principles into its core business, striving to create new values for customers, shareholders, employees, and society at large. With a shared belief in achieving the goal of "ABC means satisfaction," everyone works together with a common purpose to create a sustainable future. This vision reflects ABC's dedication to long-term success and making a positive impact on various stakeholders and the world.