Staying Ahead of the Industry: We Develop Our Own CSR Report
Although Taiwan Fu Hsing is not currently required by the Financial Supervisory Commission to provide a corporate social responsibility report, we established an "SER (social and environmental responsibility) Promotional Committee" in 2013 to hold regular meetings that involve relevant commissioners every year, and published the first corporate social responsibility report, which even received SGS certification in 2014. In the future, we will continue to devote our businesses to achieve corporate social responsibility.
Message from Company Management
In 2023, Taiwan amended the “Greenhouse Gas Reduction and Management Act” into the “Climate Change Response Act” to complete the foundation of the climate change legal system in order to respond to global climate change and fulfill the responsibility of protecting the global environment. The National Council for Sustainable Development of the Executive Yuan also announced the "Pathway to Net Zero Emissions in 2050" and marked out four major transition strategies of " energy transition," "industrial transition," "lifestyle transition," and "social transitions," as well as the two governance foundations of "technology R&D" and the "climate legislation," in order to realize the goal of net-zero transition.
Net-zero transition by 2050 has become a global trend. As a model in the industry, Taiwan Fu Hsing not only pursues corporate competitiveness and cares about environmental sustainability issues, but also deepens the partnership relations with all the stakeholders to lay the foundation for environmental sustainability. The company has taken the initiative to prepare the 2023 Sustainability Report, in which reveals all the actions taken in the current year, not only for self-supervision but also with the expectation to have feedback from all. Taiwan Fu Hsing are looking forward to work together with you to initiate a beautiful change.
Solid Operational Performance and Acceptance of New Challenges Ahead
Looking back at the past year, as the epidemic came to an end and geopolitical conflicts tested the resilience of the global supply chain, even though the company's consolidated operating revenues in 2023 declined slightly by approximately 4.8% compared to 2022, our gross profit margin increased by approximately 3% and the full year EPS achieved its record high at NT$5.03, due to the depreciation of NTD and Renminbi, recovered price of raw materials and metal prices their highs, and the well-controlled production costs. However, Taiwan Fu Hsing understands that the market is volatile and there are still many challenges ahead. Therefore, we will continue to change the existing business model to strengthen the company's adaptability to meet with external environmental changes.
New Plants in the Pipeline for Global Expansion
Based on the benefits of the international division of labor and the favorable investment environment in Thailand, Taiwan Fu Hsing has been planning to build a more competitive manufacturing base in Thailand. The base is planned to be completed in Q2 2025 and started trial production in Q3 2025. The production capacity of the Thailand plant is projected to be more than 50% of the Group's total production capacity and is expected to significantly increase the Group’s production capacity, in order to respond to the needs of the Group. This also demonstrates the importance that Taiwan Fu Hsing attaches to market expansion and its determination to actively expand globally.
Diversity and Equality to Create an Inclusive Workplace
Taiwan Fu Hsing understands that employees are the most important assets of an enterprise. In addition to providing comprehensive employee benefits, compensation, and talent cultivation programs, Taiwan Fu Hsing also organizes arts and cultural activities and health and sports competitions to promote a diverse, equal, healthy, and inclusive workplace culture. The company has also won the iSport Sports Enterprise Certification from the Sports Administration, Ministry of Education, the Health Group Award from the Occupational Safety and Health Administration's Workplace Employee Health Promotion Program, and the 16th Enterprise Culture Award from the Ministry of Culture's Arts and Culture Awards, as well as the various times of recognition as a happy enterprise. In the future, the company will continue to embrace diversity and integration, and create a friendly and mutual-support environment for colleagues, so that all are able to bravely express themselves and give full play to a better version of themselves at Taiwan Fu Hsing.
Utilizing Corporate Influence to Realize New Sustainable Values
According to the FSC's sustainable development planning schedule for listed companies, companies are required to complete the greenhouse gas inventory investigation by 2026 and obtain a third-party verification of greenhouse gas by 2028. Taiwan Fu Hsing has been acting ahead of government regulations and has carried out greenhouse gas inventory investigation and verifications on its own since 2018. For the sake of the earth's sustainable development and environmental friendliness, Taiwan Fu Hsing not only follows the laws and policies, but also has introduced the use of environmentally friendly packaging materials, such as GEX/ GMX Bio-Calcium particles, which are taken from discarded eggshells and are added to plastic materials according to customer needs to create durable, high quality, carbon reduction, and plastic reduction packaging linings. GMX Bio-Calcium particles, whose raw materials are obtained from discarded eggshells and are added to plastic materials according to customer needs to produce highly durable, carbon and plastic reduced packaging linings. From the selection of packaging materials, our design, manufacturing and production are all moving towards the goal of carbon reduction, and we also hope to utilize our corporate influence to lead our suppliers to realize the new value of sustainability together.
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