Sustainable management

Over the past year, the world has faced continued inflationary pressures, escalating geopolitical conflicts, intensified great power competition, unprecedented supply chain restructuring pressures, and increasingly severe climate change, creating a highly variable business environment. Under these challenges, Darfon has consistently adhered to the core principles of steady operations and sustainable co-prosperity, actively responding to changing situations, adjusting strategic pace, and strengthening competitiveness, striving to demonstrate resilience in operational management, continuous breakthroughs in product innovation, and steady progress in ESG practices to ensure sustainable enterprise development and long-term value growth.

In terms of economic performance, consolidated revenue for 2024 was NT$21.7 billion. Although this represented a 15.9% year-over-year decline, it demonstrated steady performance against the backdrop of global economic stagnation and slowing consumer markets, reflecting our solid foundation in operational efficiency and financial discipline. Through product portfolio adjustments and cost structure optimization, we pursued steady increases in gross profit margins, achieving net income attributable to parent company of NT$620 million and earnings per share of NT$2.22, fully demonstrating our ability to maintain profitability and operational resilience in adverse conditions. Our IT peripherals business focused on high-value-added applications such as backlit keyboards and touch modules, combined with strict cost and expense control, maintaining high-level overall operational performance. The components business continued to consolidate market share through technology upgrades and strengthening niche applications. In green energy business, we focused on E-Bike core components as the main axis, promoting supply chain optimization and product upgrades through cross-domain integration of subsidiaries. In 2024, we also completed strategic investment in European high-value-added distributor Grofa Action Sports, expanding overseas presence and deepening European market layout, establishing a solid foundation for long-term growth. Facing global supply chain transformation, we actively promoted "China+" short-chain strategy, establishing manufacturing bases in Southeast Asia and Europe, developing smart manufacturing and local supply to enhance flexibility while considering carbon emission control and ESG responsibilities.

We have always believed that sustainability is not an option, but a necessary path for enterprises toward the future. Therefore, Darfon has generously invested resources to comprehensively initiate actions in the three major dimensions of Environment, Social, and Governance, strengthening corporate responsibility and enhancing the resilience and transparency of internal and external value chains.

In environmental aspects, Darfon implements innovation-driven low-carbon future. In response to climate risks and global net-zero targets, we continue to deepen carbon reduction actions through SBTi carbon reduction target commitments, using 2021 as baseline, targeting 48.4% carbon reduction by 2031. The company also completed carbon footprint certification for battery module products this year and promoted the implementation of AI intelligent processes and green design technologies. In materials, we continue to introduce recycled plastics, plastic reduction solutions, and lightweight designs to enhance product lifecycle sustainability, widely applied in diverse fields such as E-Bikes, power tools, and power banks. We also actively promote internal carbon pricing and supply chain carbon inventory, moving toward comprehensive carbon management and achieving win-win resource efficiency and environmental friendliness.

In social aspects, Darfon is committed to creating a diverse, inclusive, and talent-driven workplace. We deeply understand that talent is the most solid asset of an enterprise. Through the "STP RD Elite Talent Program" and "International Technical Talent Program," we strengthen technical core and cross-cultural competitiveness. Women's participation in STEM and business units continues to increase, promoting the implementation of Diversity, Equity, Inclusion & Belonging (DEIB) culture in daily management. Additionally, we have been honored with the HR Asia Best Companies to Work for in Asia award for consecutive years and received recognition for sustainable workplace awards at TCSA.

In governance aspects, Darfon deepens institutional soundness and risk management. We continue to enhance Board governance quality and composition diversity, maintaining top 6-20% performance in Taiwan Stock Exchange's corporate governance evaluation. In 2024, we were again selected for the "Corporate Governance 100 Index" and first selected for "Foreign Investment Selected Taiwan Top 100," demonstrating recognition of our governance transparency, sustainability strength, and international investor confidence. Starting this year, we incorporated ESG performance into senior management compensation systems and guided management teams to use non-financial value indicators as the foundation for corporate responsibility implementation, making sustainability no longer just a concept but concrete action and culture.

Looking forward, AI and low-carbon transformation will drive global industrial reconstruction and value chain restructuring. Darfon will continue to focus on the core "Smart + Green Energy" dual-axis strategy, combining data-driven approaches, talent development, and supply chain resilience, moving toward a new milestone of smart manufacturing and sustainable operations. We aim not only to be a profitable enterprise but also to become a leader in industrial transformation, social value, and environmental responsibility.

On this path toward net-zero and shared value, no enterprise can go alone. We will continue to work hand-in-hand with customers, supply chain partners, shareholders, and all employees to jointly implement sustainability commitments and fulfill corporate long-term responsibilities to society and environment. Looking ahead, we will advance with global vision and local action, committed to playing a steady, innovative, and responsible key role in the industrial ecosystem, becoming an internationally competitive enterprise model for sustainability.

We sincerely thank all partners who care about and support Darfon, allowing us to jointly become actors promoting sustainable change and move toward a better future.