HUIKWANG CORPORATION

Climate Impact & Sustainability Data (2022)

Total Carbon Emissions:58,228.26 tCO2e/year (Scope 1 & 2, Huikwang Madou Plant)

Scope 1 Emissions:53,195.78 tCO2e/year (Huikwang Madou Plant)

Scope 2 Emissions:5,032.48 tCO2e/year (Huikwang Madou Plant)

Water Consumption:43.47 million liters/year (Huikwang Madou Plant)

Reduced greenhouse gas emissions from Scope 1 and Scope 2 to 58,228.26 metric tons of CO2e in 2022 (Huikwang Madou Plant). Reduced water usage from 50.61 million liters in 2021 to 43.47 million liters in 2022 (Huikwang Madou Plant). Reduced waste (organic slug, scrapped oil mixtures, household garbage) at Huikwang Madou Plant.

Established an Employee Welfare Committee and implemented various welfare measures. Provided regular health check-ups and employee trips. Implemented a comprehensive welfare system to benefit all employees and promote labor-management harmony. Conducted regular safety and health seminars and workplace inspections. Implemented employee education and training programs (2321 total hours).

Established a Remuneration Committee and an Audit Committee. Implemented Corporate Governance Best Practice Principles. Conducted regular audits of operational procedures and reported to the Board of Directors. Directors, Independent Directors, and managers signed integrity statements. Implemented policies to prevent conflicts of interest and provided communication and complaint channels. Established a comprehensive accounting system and internal audit system.

Long-term Goals:

Become the leading brand in Asia (Geosynthetics); maximize market coverage through the current multi-channel distribution system; ensure that a decrease in domestic demand does not hinder its development.

Medium-term Goals:

Adjust product development strategies to focus on developing products with high gross margin, high value, high efficiency, and low pollution; strengthen cooperation with international major players; expand cooperation scope to production supply chains; explore new businesses complementary to geosynthetics.

Short-term Goals:

Actively develop me-too agro-pesticide formulations and mixed preparations; enhance the company's and products' influence in Mainland China; improve the professional capabilities of "HUIKWANG Farmers' Service Station"; develop sales for non-agro-pesticide products; enhance international marketing capabilities.

Supply chain disruptions due to the Russo-Ukrainian war, natural environmental factors, and the pandemic. Price competition in the foreign market due to tighter supply and increased costs of raw materials (mainly sourced from China). Stricter domestic and international regulations regarding the management and usage of plant protection products. Trade barriers, especially tariffs, impacting exports.

Seeking competitive niches in existing markets. Creating product differentiation through stable quality and own brand. Engaging in product registration projects to ensure stable supply. Establishing a new plant in Thailand to reduce tariff barriers. Strengthening inventory management systems and diversifying raw material sources. Developing different formulations to maintain quality stability and reduce product costs. Expanding and cultivating emerging markets. Actively participating in international industry exhibitions. Increasing product competitiveness through quality and system certifications. Increasing the distribution of plant protection materials exempt from registration. Obtaining distribution rights for low-toxicity and safe agricultural agro-pesticides from international manufacturers. Expanding the registered application scope of existing products. Engaging in strategic partnerships with high-quality suppliers in China. Establishing exclusive channels for direct dissemination of agro-pesticide information and technical promotion overseas. Developing high heat resistance, resistance to high UV exposure, resistance to high-temperature chemicals, and extreme environmental conditions in geosynthetics.

Maintaining long-term and close relationships with suppliers; regular evaluations of supplier lead times and product quality; reducing reliance on a single raw material supplier.

Frameworks Used: IFRS

Certifications: ISO 9001, ISO 14001

Third-party Assurance: PricewaterhouseCoopers Taiwan

Environmentally-friendly and organic fertilizers, natural plant growth regulators; high-temperature resistant, UV-resistant geomembrane; multi-layered high-functionality geomembrane (materials); Thioanisole derivatives; intermediate for technical grade agro-pesticides.