Looking back at 2025, corporations' operations faced unprecedented challenges due to rising geopolitical risks, accelerated restructuring of supply chains, rapid advancement of artificial intelligence (AI), and energy shortages. Walsin Lihwa has strengthened the response capabilities of its global supply chains through a diversified global portfolio and business allocation, and has participated in the creation of key energy infrastructure. We are also responding to global risks and seizing strategic development opportunities, and are steadily promoting sustainable governance and long-term value creation.
Walsin Lihwa attaches great importance to jointly building a more resilient industrial ecosystem alongside our partners. In 2025, we proposed supplier partnerships based on the theme of "Connecting and Empowering to Create the Future Together" in order to establish transparent information and trust interactions through "connecting," thereby promoting a greater focus on the market's demands and the sharing of information. On the other hand, "empowering" is how we provide support to suppliers, helping them enhance their capabilities and innovation. Through joint R&D, process improvements, and technology exchanges, we have expanded our R&D capabilities to specific application areas, thus improving product performance and competitiveness. By jointly discovering further agile cooperation models through partnerships, we can all work together to strengthen the stability and sustainable competitiveness of global supply chains.
Walsin Lihwa has continued to optimize the Company's product structure and high-end market presence. In 2025, we launched a production expansion program for our UK subsidiary SMP, and jointly invested in Advanced Manufacturing Holding Limited (AML). We are also strengthening our stainless steel high-end process technologies and production capacity, and are expanding our supply capacity for key application markets such as aerospace and energy. Moreover, to take advantage of the growth opportunities in the global precision manufacturing market, we launched the new stainless steel cold finished bar brand "Steeval®," with the six major brand commitments of "smart manufacturing, craftsmanship, diversity, trust, service, and co-creation" as the core. We are also promoting the three-pronged strategy "Diversity in Grades, Premium Quality, and Excellent Craftsmanship," focusing on advanced fields such as AI servers, automobiles, robots, consumer electronics, and energy, in order to make materials a key driving force for improving process efficiency and quality. By evolving from merely manufacturing materials to co-research and co-creation with customers, Walsin Lihwa is entering a new era of providing technical service solutions.
In the face of the challenges brought by the restructuring of the global energy sector and the accelerated pace of climate change, it is necessary to ensure a stable, low-carbon, diverse, safe, and resilient energy structure. Walsin Lihwa has many years of experience in the materials and manufacturing sectors, and is fully aware that a stable and reliable energy supply is an essential foundation of national development and industrial operations. Consequently, we have actively pursued energy efficiency improvements, low-carbon processes, and recycling via a sound governance framework and cross-business integration.
Offshore wind power is an important cornerstone of Taiwan's road to net-zero emissions and energy transition, and submarine cables are an indispensable link between wind farms and the national power grid. With a strong foundation in wire and cable technology and manufacturing, Walsin Lihwa has partnered with the Danish company NKT, one of the world's leading marine cable technology companies, to build Taiwan's first submarine cable manufacturing plant in Kaohsiung. The facility will use the industry's highest ESG factory construction standards, and is expected to enter mass production in 2027. Once the plant is capable of independently producing submarine cables, it will immediately be able to support the construction of wind farms, thus reducing the risks from international supply chain fluctuations and long-term dependence on imports. Not only will this strengthen Taiwan's energy security, it will also serve as a cornerstone for further industrial development.
Walsin Lihwa adheres to the Company's core philosophy of being people-oriented, and regards employees as the foundation for the Company's operations and long-term development. We have deepened our industry-academia collaborations, with a focus on forward-looking R&D, international internships, and on-the-job education. We work with colleges and universities to cultivate diverse talent and strengthen the R&D of key technologies, thereby ensuring that employees can have the right environment to shine. We are also actively participating in the "Talent, in Taiwan" movement, creating a diverse, equitable, and inclusive workplace environment based on the five major action indicators of "Diversity and Inclusion, Rewards and Incentives, Physical and Mental Health, Cultivation and Development, and Communication and Experience." The Company attaches great importance to the rights and interests of employees and workplace safety, comprehensively protects labor rights in plants worldwide, and has strengthened overseas communication mechanisms. In 2025, we focused on the Indonesian plants, promoting labor-management dialogue and improving feedback mechanisms, in order to further improve the human rights protection systems. Walsin Lihwa has been recognized as one of the "Best Companies to Work with in Asia" by HRAsia for three consecutive years, and was also awarded the "Diversity, Equity, and Inclusion Award" at the same time, thus fully demonstrating the Company's commitment and substantial achievements in the development of sustainable talent.
Walsin Lihwa has leveraged its influence in the industry and has continued to expand the depth and breadth of the Company's social participation. In 2025, we established the Walsin Lihwa Sustainability Foundation, which focuses on five major directions: recycling, environmental conservation, education and promotion, green living, and social awareness, thereby expanding the Company's long-term commitment to sustainability. The foundation has collaborated with Waltuo Green Resources and National Cheng Kung University to establish the Diverse Materials R&D Center, and began industry-academia collaboration with National Taipei University of Science and Technology, I-Shou University, and the Industrial Technology Research Institute to promote recycling and zero waste. In terms of environmental education, we organized a screening for the film Guardians of our Planet as well as an environmental education experience activity with the Chi Po-Lin Foundation to improve employees' knowledge of climate change and ecological conservation. The Company also invited school teachers and students to industrial sites through an Open Day at the Indonesia Morowali Industrial Park (IMIP), allowing them to learn about industrial manufacturing through first-hand experience and promoting understanding and dialogue between society and the industry. In response to cultural diversity and inclusive values, the Company sponsored Taiwan's first Amis Music Festival, which focused on the culture of Taiwan's indigenous peoples. The Company also used special charity events and the film Snapshots of Growing Up to draw attention to education issues among second-generation immigrants; the film received the Silver Award at the 2025 Taipei Golden Eagle Micro Movie Festival.
Corporate governance and business integrity are the cornerstones of sustainable development. Walsin Lihwa's management team has a diverse range of professional backgrounds, and continues to deepen their insights into ESG, international political and economic trends, and industry trends. Our sustainability performance has received widespread approval from the market and society. In 2025, we were selected for the first time in the S&P Global Sustainability Yearbook. We also won the Top 100 Taiwan Corporate Sustainability Award from the Taiwan Corporate Sustainability Awards (TCSA), were ranked in the top 5% of the Corporate Governance Evaluation for the eighth consecutive year, and were selected as a constituent stock of the FTSE4Good TIP Taiwan ESG Index and TWSE Corporate Governance 100 Index. These accolades demonstrate the Company's overall competitiveness and achievements, growing from receiving national-level corporate governance awards to participating in international-level sustainability ratings.
Looking toward the future, the Company will continue to enhance its competitiveness through more agile decision-making, while realizing the Company's commitment to the environment and society in our operations and actions. With a core focus on customer needs, we will promote technological improvement and quality commitments through our strong execution capacities. Furthermore, with business integrity as the foundation, we will work with employees, supply chain partners, and society to implement the concept of sustainability in our operational management and daily decision-making, while also ensuring our stable operations as well as environmental and social responsibilities, thereby creating reliable and lasting sustainable value for shareholders and society.
