Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Sustainable Products
• Resource Efficiency

Environmental Achievements

• 50% weight reduction in A-Bond products compared to conventional trailers, decreasing fuel consumption and carbon emissions, and increasing capacity
• Utilizing recycled PE waste in production

Social Achievements

• Not disclosed

Governance Achievements

• Maintained an average dividend payout over 80% of net profit in the past 5 years

Climate Goals & Targets

Environmental Challenges

• Material cost hike
• Transportation cost increase
• Unfavorable FX
• Supply chain bottlenecks (worker shortages, raw material scarcity, import delays)

Mitigation Strategies

• Hiked ASP in February and May
• Introducing multiple automation and intelligent production into manufacturing process and refining QA/QC to improve operation efficiency
• Careful review of capital structure and consideration of capital reduction or optimized debt-equity ratio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• A-Bond products (50% weight reduction)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Strong currency of NTD affected gross margin by 6.11%
• Inventory impairment of NT$87.764mn that affected gross margin by 1.95%
• Foreign-exchange loss of NT$ 362 mn and booked NT$ 1,213 mn of impairment loss in 3Q2017.

Mitigation Strategies

• Recognized asset impairment loss regarding to business lines (Alanold-Xxentria and Solar Receiver Tube) in 3Q2017.
• Invested in a new business to crack, wash and pelletize recycled PE waste to ensure PE source and gain more flexibility.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• 50% weight reduction in comparison to conventional trailer, decreasing fuel consumption and carbon emissions, and increasing capacity

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• A-Bond, BiMetal products
• New generation composite panel, using high-tech aluminum alloy

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• 50% weight reduction in A-Bond products compared to conventional trailers, decreasing fuel consumption and carbon emissions, and increasing capacity
• Utilizing recycled PE waste into high-quality material in the foaming lamination process.

Social Achievements

• Not disclosed

Governance Achievements

• Maintained an average dividend payout over 80% of net profit in the past 5 years.

Climate Goals & Targets

Environmental Challenges

• COVID-19 significantly impacted the semi-trailer market, halting production and sales globally.
• Supply chain bottlenecks due to worker shortages, scarce raw materials, and import delays.
• Worse FX, lower gross margin on subsidiary company product, and material cost hike impacted gross margin.

Mitigation Strategies

• Careful review of capital structure and consideration of measures such as capital reduction or optimized debt-equity ratio to reach ROE target.
• Carefully planned capital expenditures to take advantage of growth in existing and new markets.
• Intention to maximize payout ratio, backed by solid cash position and limited capex.
• Introducing multiple automation and intelligent production into manufacturing process and refining QA/QC to improve operation efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• A-Bond Products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• 50% weight reduction in A-Bond products compared to conventional trailers, decreasing fuel consumption and carbon emissions, and increasing capacity
• Superior corrosion resistance feature in A-Bond products

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Worse FX
• Material cost hike
• Increased transportation cost
• Rising diesel prices

Mitigation Strategies

• Increased ASP (Average Selling Price) in 2020 and plans to increase it again if material costs and ocean freight increase
• Careful review of capital structure and consideration of measures such as capital reduction or optimized debt-equity ratio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• A-Bond Products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Carbon emissions
• Sustainable products
• Resource management

Environmental Achievements

• New generation composite panel (A-Bond) with 50% weight reduction compared to conventional trailers, decreasing fuel consumption and carbon emissions, and increasing capacity.
• Utilizing recycled PE waste into high-quality material for composite panels.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Material cost up and transportation cost increased

Mitigation Strategies

• Xxentria hiked ASP in 2022

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• A-Bond

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• 50% weight reduction in A-Bond compared to conventional trailers, decreasing fuel consumption and carbon emissions

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• A-Bond

Awards & Recognition

• Not disclosed