Message from the Chairman

Since the outbreak of the COVID-19 pandemic in 2019, the global economy has been under constant strain. While it was initially expected that the economy would sustainably recover in 2022 as countries gradually lifted their pandemic containment measures, various factors such as the Ukraine-Russia conflict in the first quarter of 2022, which led to soaring energy and food prices, along with record-high inflation rates and climate disasters, have continued to deepen concerns about the global economic outlook. In such a challenging environment and in the face of sustainability challenges, ABC embarked on its most transformative year yet. Leveraging our solid corporate foundation built over many years, the Company has demonstrated stellar resilience. In 2022, the entire Group achieved a total revenue of NT$3.03 billion, a post-tax net profit of NT$208 million, and earnings per share of NT$2.24, achieving an impressive cumulative revenue growth rate of 22.38%. This is the third Sustainability Report released by ABC. With 44 years of dedication, ABC continues to uphold the ideal of "bringing together a group of people to create a business." In 2022, ABC was recognized during the 8th National Corporate Governance Evaluation results, ranking in the 36%~50% range among TWSE-listed companies. ABC remains committed to advancing sustainable development and strives to move towards becoming one of the world's top passive electronic component manufacturers.

Technology research and innovation are driving forces behind ABC's sustainable development. In response to changing customer demands and international market dynamics, ABC is actively developing new products and has both medium and long-term plans for product expansion and investment in place. The forward-looking plans also include the establishment of a new factory in Vietnam, aiming to provide professional manufacturing and high-quality service while building "One to One" partnerships with customers. In 2022, ABC signed multiple industry-academic cooperation projects with National Taipei University, including projects related to AOI & AI, 5G private networks, Low-Temperature Co-Fired Ceramics (LTCC), graphene, and the Greater Metaverse Value Chain Community Project. Additionally, ABC and National Taipei University have jointly established the "ABC-National Taipei University Joint Research Center." In the future, the research center will focus on core areas such as basicmaterials and smart manufacturing processes, with the goal of achieving smart and unmanned factory production. It aims to effectively utilize industry-academic research resources to enhance the alignment between academic research and industry practices. ABC also places information security as the highest guiding principle of the Company. The collaboration with National Taipei University on the 5G private network involves the network’s independent operation separate from public networks, ensuring that the organization is protected against cybersecurity threats and confidential data leaks. By avoiding reliance on public networks, it guarantees the communication quality of connected sensor devices and ensures the stability of Internet of Things (IoT) applications.

In 2022, as part of the fundraising campaign for the Chiayi Christian Hospital Smart Surgical Building, ABC sponsored the acquisition of the fourth-generation Da Vinci Surgical System. This surgical system assists in a wide range of surgical procedures across various medical specialties. Physicians can use a 3D high-resolution variable-focus camera that magnifies up to 15 times to navigate deep within the body, resulting in smaller incisions and reduced bleeding. The introduction of this system also significantly alleviates the surgical burden on surgeons, while also enabling precise and rapid removal of lesions, thereby reducing the postoperative recovery time for patients.  ABC's participation in the Smart Surgical Building fundraising program supports the development of Chiayi Christian Hospital into a medical center and enhances the quality of medical care for the people of Yunlin, Chiayi, and Tainan, thereby benefiting more people and fulfilling its corporate social responsibility.

Since 2020, the global automotive industry has faced significant challenges, including the impact of the COVID-19 pandemic. However, one of the most profound and ongoing influences on the industry has been the issue of net-zero carbon emissions. With various countries implementing incentives for electric vehicles and governments worldwide maintaining their net-zero carbon emission targets, the shift from traditional internal combustion engine (ICE) vehicles to electric vehicles (EVs) has become crucial in reducing carbon emissions from the global transportation system. This transition not only has environmental implications but also has far-reaching effects on the global economy as it reshapes the automotive industry and related sectors. All of ABC's factories have successfully obtained the IATF 16949 automotive industry certification. Having cultivated deep collaborations with European automotive manufacturers for many years, ABC has recently made significant inroads as a second-tier supplier for Japanese automotive companies. The next strategic step is to actively expand and establish a presence in the American market, ensuring that ABC's product lines are accessible to automotive manufacturers in Europe, the Americas, and Japan. This expansion effort attests to ABC's commitment to serving a global customer base in the automotive industry.

ABC is steadfast in its commitment to becoming a diversified and sustainable business. With a vision to "create a world-class industry for inductors and precision mechanical 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 value for customers, shareholders, employees, and society at large. With a shared belief in achieving the goal of "100% ABC 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.