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Message from the Chairman |
| Tyntek is committed to being the best partner in providing various sensing solutions. |
| In 2023, as the COVID-19 pandemic eased and the world began to learn to live with it, borders were gradually liberalized. However, international geopolitical relations remained tense, and the risk of extreme climate catastrophe increased. At the same time, the continuous pressure of inflation and interest rate hikes in the U.S. made business operations still need to face numerous uncertainties and severe challenges. In addition, due to the concerns over the high level of inventory to be worked off in the optoelectronic semiconductor industry and economic downturn, despite the concerted efforts of the management team and the Company's employees to improve quality and reduce production costs through diversified sources of materials and continuous optimization of the manufacturing processes in the direction of a blueprint for sustainable development, the company was still unable to withstand the impact of the sluggish demand in the market, which resulted in less than expected operating results. To cope with such challenges, the Company will continue to strive to adapt to changes and quickly adjust its strategies to ensure its competitiveness in the dynamic environment. Annual revenue in 2023 totaled NT$2.267 billion, down 6.28% from 2022, with an after-tax loss of NT$136 million and a return on equity of -3.24%. |
The impact of climate change and extreme weather has become an issue that the world, governments, and enterprises need to actively face and resolve. "Net Zero Emissions by 2050" is not only an environmental issue, but also an economic issue that affects the competitiveness of countries and industries. Therefore, driven by the global trend of net-zero emissions and sustainable management of enterprises, Tyntek will continue to pay attention to the sustainable development policies and goals promoted by the state. In addition to actively responding to customers' requests for ESG and strategic cooperation, Tyntek also continues to invest resources in promoting sustainable development. Through the ESG Sustainability Committee established in 2022, Tyntek will refocus on the vision and mission of the enterprise and its sustainability strategy, has been constantly promoted and developed Tyntek's management and actions in sustainability since 2023, so that the ESG spirit can be integrated into the operations of the enterprise and the day-to-day activities of its employees. |
In terms of corporate governance, in order to continue to promote the diversity and independence of the Board of Directors, re-election of the Board of Directors was conducted at the shareholders' meeting in 2021, whereby not only was the Board of Directors renewed but there was also a trend towards a younger age group among its members. It is now composed of 4 regular directors and 3 independent directors, of which 1 is a female independent director, with the percentage of independent directors as high as 43%. The board members have rich experience in industry knowledge, operation and management, complementary to the strong financial and accounting abilities and risk management expertise of independent directors. |
In terms of operation and production and marketing strategies, Tyntek actively develops new products and expands new customer sources. At the same time, Tyntek adjusts its product structure with the goal of increasing its overall gross profit margin, and conducts research and development continuously to introduce products in line with the market trend in order to enhance its technological level and move towards the development of modularized and high-value-added products. At the same time, we are also actively increasing the proportion of our products in the wearable device, industrial control and automotive markets to strengthen product differentiation and diversification, so as to more effectively meet customer needs and seize the market development trend. In addition, in order to cope with business expansion, the Company has been actively building up a complete international marketing channel and operation management, and strengthening the professional training of engineers to enhance the product technical support and after-sales service levels, in order to continue to cater to and gain a solid foothold in the domestic and overseas markets, and to increase the market share of the Company's products. |
In terms of environmental protection, Tyntek took stock of the total amount of energy used, water resources utilized, GHG emitted and wastes produced in recent years, and completed the annual greenhouse gas inventory and verification of Ren’ai Plant and Kejung Plant in 2023; in addition, it also strive for the emission reduction targets constantly, and the implementation effectiveness will be regularly reviewed and tracked for improvement through the annual assessment. At the same time, we have gradually introduced TCFD climate-related financial disclosure to identify potential climate change risks and opportunities, analyze the impact on the Company's finance and operations, and formulate relevant strategies and measures in advance to minimize the impacts related to environmental risks and to carry out environmental strategies to achieve the goals. |
In terms of employee care, we continue to enhance employee welfare and occupational safety and health management, and hold regular quarterly Safety and Health Committee meetings to focus on identifying and eliminating hazards, risk assessment, accident investigation and audit systems to make comprehensive improvements, and to create a healthy and safe workplace for our employees. In terms of social engagement, we continue to promote industry-academia cooperation and participate in activities organized by nearby community or public welfare organizations to maintain a good relationship with our neighbors. For more details, please refer to this Report. |
In the face of numerous uncertainties in the overall global industry environment, Tyntek maintains a cautiously optimistic attitude and continues to strengthen its resilience to external changes. Taking the blueprint for sustainable development as a guide for the Company's management, we will continue to promote the acquisition of knowledge related to the general economy and industrial development trends, five year short-, medium-, and long-term goal planning, and the promotion of risk management, etc. Tyntek will also fully invest in the research and development of components related to sensing solutions and develop high-potential, high-performance niche products, thereby strengthening product segregation and diversification and increasing our share in the European, American, and Japanese markets. We hope to enhance the overall team's awareness of sustainable development through diversified strategic arrangements and transitional planning, leading the Company to move forward steadily and realize the vision of sustainable management. |