Sustainable Governance

In 2025, the global political and economic landscape continued to evolve rapidly, shaped by geopolitical uncertainty, supply chain realignment, and increasing climate-related risks. For the Darfon Group, however, 2025 was a pivotal year for advancing structural transformation. In today’s industrial landscape, corporate resilience can no longer be measured solely by financial performance. It increasingly depends on the ability to anticipate future trends, strategically position operations across global markets, and translate sustainability commitments into meaningful action.

In terms of economic performance, the Darfon Group demonstrated both operational resilience and renewed growth momentum in 2025. Full-year consolidated revenue reached NTD 25.08 billion, representing an increase of 15.5% from the previous year. In the Smart Business segment, 2025 marked the beginning of accelerated AI PC adoption. We capitalized on growth opportunities in the high-end backlit keyboard and gaming laptop markets. Drawing on our deep technological expertise in critical IT peripherals, we not only reinforced our global leadership position, but we also strengthened customer partnerships and engagement amid the AI wave. Together with our customers, we are moving beyond traditional “volume-based competition” toward a qualitative transformation in value creation. In the Green Energy Business, although the global bicycle market continued to face industry headwinds, Darfon remained focused on strengthening its long-term competitiveness throughout the market downturn. Through cross-disciplinary collaboration among subsidiaries, we vertically integrated bicycle frames, battery modules, and electronic control systems to provide customers with comprehensive E-Mobility solutions. At the same time, strategic investments in European distribution channels have enabled us to deepen localized services and gain greater market insight. We view short-term market volatility as an opportunity to reinforce our long-term competitiveness. By integrating capabilities and creating greater value, the Green Energy Business will become a core engine of Darfon’s long-term profitability. In response to the shift toward dual-track supply chains, Darfon has actively reconfigured its global production footprint and established a global deployment strategy of “Lean China, Value-Driven Taiwan, Value-Added Europe, and Scale in Vietnam.” This strategy is designed not only to diversify geopolitical risks but also to build shorter, more resilient supply chains that are closer to end markets. This configuration has also reduced the carbon footprint of cross-border transportation, aligning supply chain resilience with environmental responsibility.

Sustainability is ingrained in Darfon’s DNA. On the environmental front, we have accelerated our low-carbon transformation. In 2025, Darfon achieved LEED Platinum certification and the UL Verified Healthy Building Mark, and was named an Asia-Pacific Climate Leader by the Financial Times. We were also selected as one of Business Weekly’s Top 100 Carbon Competitiveness Companies in Taiwan and recognized by Common Wealth Magazine as a 1.5°C-compliant enterprise, demonstrating our unwavering commitment to net-zero emissions. The year 2025 also marked an important milestone on our journey toward net-zero emissions. Our science-based targets were officially validated by the Science Based Targets initiative (SBTi). Guided by these targets, we established a clear emissions reduction pathway to 2031. From a 2021 base year, we are committed to reducing Scope 1 and Scope 2 greenhouse gas emissions by 48.4% and Scope 3 greenhouse gas emissions by 27.5% by 2031. To deliver on these commitments, we are focusing on two strategic priorities. The first is the energy transition. We are increasing the share of renewable electricity and reducing energy consumption through smart energy management. The second is advancing a circular economy for advancing plastics circularity. We are incorporating “design for recyclability” into product development and expanding the use of post-consumer recycled (PCR) plastics. Through these efforts, we aim to reduce carbon emissions, accelerate resource circularity, and put the “Cradle to Cradle” sustainability philosophy into practice.

On the social front, we remain firmly committed to ethical business practices and to creating a diverse, equitable, and inclusive workplace where everyone can thrive. The Company has received the HR Asia Best Companies to Work for in Asia Award for five consecutive years, reflecting our long-standing commitment to talent development and to fostering an inclusive and supportive workplace. We recognize that our people are Darfon’s most important asset. Our STP and RD talent development programs, we not only strengthen employees’ professional capabilities but also cultivate the cross-disciplinary problem-solving skills needed in the AI era. Darfon also remains committed to fulfilling its corporate social responsibilities, from caring for local communities to safeguarding the well-being of employees around the world.

On the governance front, Darfon is committed to maintaining a governance framework that is transparent, accountable, and effective. We have strengthened the Board’s oversight role and linked ESG performance to management evaluations, ensuring that sustainability objectives are embedded in every business decision. This year, Darfon received the “Taiwan Top 100 Sustainability Exemplary Enterprise Award.” This recognition not only highlights the Company’s outstanding performance in transparent governance and sustainable management but also demonstrates our steadfast commitment to creating long-term value for shareholders.

Looking ahead to 2026, it will be a pivotal year as AI technologies move toward widespread application and the global green transition continues to accelerate. Guided by our core principle of “Innovating Value, Growing Profits,” Darfon will continue to create sustainable profitability and long-term corporate value while actively implementing ESG principles and the RBA Code of Conduct to support the Company’s long-term and sustainable development. We firmly believe that sustainability is not a burden, but the only passport to the future. Darfon will continue to work alongside customers, suppliers, shareholders, and employees to build a low-carbon, highly efficient corporate model that embodies significant social value.

Finally, I would like to express my sincere gratitude to all stakeholders for their longstanding trust in and support for the Darfon Group. Let us remain resilient amid transformation and seize opportunities amid every challenge. Looking ahead, Darfon will continue to pursue its dual-axis strategy of “Smart + Green,” combining data-driven management, talent development, and supply chain resilience as we embark on a new chapter in which smart manufacturing and sustainable operations advance hand in hand. Our ambition is not merely to be a consistently profitable company but to become a leader in industry transformation, social value creation, and environmental responsibility.

Chairman

Darfon Electronics Corp.