The year 2025 marked a transition for generative AI from a phase of technological breakthroughs to one of practical application. Amid geopolitical uncertainties, the pressures arising from the EU's Carbon Border Adjustment Mechanism (CBAM), and the growing global emphasis on natural capital under the Taskforce on Nature-related Financial Disclosures (TNFD), corporate competition has evolved beyond pure profitability into a comprehensive arena of "resilience-driven competitiveness."

Over the past year, Chicony Electronics not only maintained a steady footing amid volatile supply chain conditions, but also proactively leveraged AI to enable sustainability, converting environment challenges into a compounding driver of long- term growth. In 2025, we remained firmly committed to our core strategy of the Twin Transition, achieving significant results that exceeded expectations.

 

 

In 2025, the proportion of renewable electricity usage (RE) reached 61%, significantly exceeding the original target of RE38. Approximately 20% of this was procured through direct renewable energy purchasing, ensuring the integrity and stability of energy sources, while due diligence on solar power plants continued. Regarding greenhouse gas (GHG) management, we have completed inventories covering Scopes 1 through 3 across the Company. Compared with the 2020 baseline, carbon emissions for Scopes 1 and 2 were reduced by 66%, while Scope 3 emissions were reduced by 53%, both substantially surpassing the originally established targets.

 

In December 2025, we published our first report aligned with the TCFD and TNFD frameworks, disclosing the proportional financial impacts of climate and nature-related issues on the Company. In parallel, we advanced our implementation of the IFRS S1/S2 sustainability disclosure standards. We have completed qualitative analyses and identified key sustainability topics, laying a comprehensive foundation for future quantitative financial disclosures. In addition, all four major manufacturing sites obtained UL 2799A Zero Waste to Landfill Platinum Validation, further advancing our transition toward a circular economy.

 

As AI continues to permeate CEC's product lines—from intelligent facial recognition and motion detection in video imaging devices to automation across manufacturing processes—we are also extending its application into the domain of corporate governance. We are currently planning to leverage AI technologies to support sustainability information auditing, utilizing automated anomaly detection to ensure the highest level of ESG data quality. In addition, to enhance supply chain transparency, we have completed the design of a "Responsible Minerals Management Platform," which is scheduled to be launched in 2026. This platform will further strengthen the traceability and governance of critical raw material sources.

 

 

The ESG Sustainability Office has completed its first year of operation, delivering notable achievements. In October 2025, our new ESG website was launched, significantly enhancing stakeholder engagement, with over 50 effective interactions completed by year-end. We also conducted customer satisfaction surveys covering more than 80% of total revenue, and, for the first time, carried out employee satisfaction interviews integrating both quantitative and qualitative approaches.

 

CEC recognizes that its employees are its most valuable assets. This year, in addition to quantitative analysis, we conducted in-depth qualitative interviews with more than 30 employees to better understand their needs and implement targeted improvements to internal policies. These initiatives include the adoption of comprehensive flexible working hours, as well as maintaining average compensation and childbirth subsidies above industry levels (ranging from NT$66,000 for the first child to NT$128,000 for the fourth child). Furthermore, in preparation for the European Union’s "Corporate Sustainability Due Diligence Directive" (CSDDD), CEC completed its first group-wide Human Rights Due Diligence (HRDD) assessment in 2025, marking an important first step toward safeguarding labor rights.

 

Despite global economic adjustments in 2025, CEC delivered solid performance, reporting consolidated annual revenue of NT$95.66 billion, net income after tax of NT$6.54 billion, and earnings per share (EPS) of NT$9.05. In terms of external recognition, we were ranked No. 30 in the Large Manufacturing Category of the CommonWealth Excellence in Corporate Social Responsibility Award for another consecutive year. We also received the TCSA Sustainability Report Silver Award, the Top 100 Sustainability Exemplars Award, and the Climate Leadership Award.

In the internationally recognized CDP assessments, we maintained an A- (Leadership Level) rating in the Climate Change questionnaire, improved our Water Security rating from B to A- (Leadership Level), and elevated our Supplier Engagement Rating (SER) from A- to the highest level of A.

 

In addition, CEC continued to be included as a component stock of the Taiwan Sustainability Index and the "FTSE4Good Emerging Markets Index," demonstrating that our resilience has become a preferred long-term choice in the investment community.

 

 

Looking ahead to 2026, CEC will uphold its commitment to integrity and proactively address challenges arising from plant consolidation and resource optimization. We firmly believe that sustainability is a continuously evolving journey. CEC will work hand in hand with its stakeholders to shine and create shared value in the new digital era led by AI.