Far Eastern New Century Corporation holds its 2024 shareholders' meeting

        Far Eastern New Century Corporation held a shareholders' meeting on June 27th, led by Douglas Hsu and his management team, to report to shareholders on the performance of the company's three major operational areas: production, investment, and land development, as well as future development directions.

        Stable performance in 2023, operational growth in Q1 2024, optimistic and predictable dividends

        In the face of a global economic downturn in 2023, Far Eastern New Century Corporation maintained steady performance, with consolidated revenue of NTD257.2 billion and net profit attributable to the parent company after tax of NTD82.3 billion, a growth of 1%. Earnings per share were NTD1.64, and a cash dividend of NTD1.35 was distributed during the meeting, with a cash dividend yield of 3.8%. In Q1 2024, the consolidated revenue was NTD65.4 billion and the net profit after tax was NTD1.59 billion, with growth rates of 6% and 9% respectively. Under optimistic expectations for operational performance, a high profit distribution ratio will be adopted in the future.

        Creating green business opportunities and accelerating AI transformation

        Technological innovation focuses on green technology and moves towards net zero emissions

        Far Eastern New Century Corporation is a global leader in recycled polyester materials, with green product revenue accounting for over 30% of its production business in 2023. To consolidate the company's leadership position and drive the green transformation of the polyester industry, we actively expand the production capacity of recycled polyester, including the Philippines factory that will be put into operation in 2023, as well as the Kansai and Vietnam factories in Japan that will be put into operation in 2024. The US recycled polyester factory will also complete its capacity expansion in the first half of 2024. In addition, the newly built green recycled polyester factory in Malacca, Malaysia is expected to be put into operation by the end of 2025.

        In 2024, there will be an Olympic business opportunity, and the company's recycled polyester products will be favored by international sports brands, not only becoming jerseys for multiple national teams, but also driving the continuous increase in orders for environmentally friendly shoe materials and functional fabrics. At the same time, products such as food packaging and PET bottles will also see a surge in purchasing power with the arrival of the Olympics, stimulating order growth. Supported by strong market demand and capacity expansion, green product revenue is expected to reach a new high in 2024.

        To embrace the wave of sustainability, Far Eastern New Century Corporation has set a transformation goal of reducing carbon emissions by 50%, green products by 50%, and green raw materials by 50% by 2030, actively promoting net zero transformation. The strategy includes improving energy efficiency, low-carbon fuel substitution, developing renewable energy, and continuously laying out cutting-edge technologies. Among them, chemical fabric recycling technology is about to enter the commercialization stage, and future business opportunities are promising.

        AI empowers the development of intelligent factories and innovative applications

        Far Eastern New Century Corporation has formulated a comprehensive digital transformation strategy, applying AI to production, business, administrative management, etc., creating an intelligent operation model, and establishing an AI promotion team to develop intelligent production lines, optimized decision-making, human-machine collaboration, Internet of Things (IoT), edge computing, and other applications. In 2023, the company will focus on the technological innovation brought by generative AI and develop multiple AI applications such as personal assistants, enterprise platforms, and intelligent customer service using its own technology. This will not only improve operational management efficiency, but also leverage cross regional collaboration and synergy.

        In addition, Far Eastern New Century Corporation has partnered with two global AI technology giants to gradually introduce the AI platforms of Google Gemini and Microsoft Copilot, applying their complete language models and AI functions to enable generative AI to quickly penetrate workflows, improve work efficiency, and enhance competitive advantages with technological strength.

        Implementing land revitalization to release asset value

        Abundant land assets with considerable development value

        Far Eastern New Century Corporation holds 570000 hectares of land in Taiwan, mainly concentrated in the northern essence area, of which investment real estate accounts for nearly 40%, and the land value is considerable. The current development focus includes the "Taipei Far Eastern Group Communication Park" in Banqiao District, New Taipei City, and the "Neili Land Development Project" in Taoyuan City. The future development benefits are expected to double.

        The Far Eastern Group Communication Park in Taipei is not only Taiwan's first privately developed communication and digital industry professional park, but also the first industrial park in Taiwan to obtain LEED Campus certification from the United States. Multiple research and development buildings have been constructed within the park and leased by internationally renowned companies such as Google, bringing in substantial rental income. In addition, the high-end residential building "Far Eastern Construction Forest" in the park has been fully sold out, with sales exceeding NTD5.5 billion. In addition, construction has begun on two 27 story residential buildings to meet the market's keen demand.

        The land change of the "Neili Land Development Case" in Taoyuan City has been approved by the local government and is now under review by the Ministry of the Interior. It will be developed into a comprehensive living park, including commercial and residential areas, which will continue to revitalize land assets and promote regional economic vitality and prosperity.

        With the increasing demand of Taiwan enterprises for factory expansion and the rising value of industrial land, Far Eastern New Century Corporation has a huge industrial land in essence areas, including Taoyuan Kuanyin, Hsinchu Xinpu, Hukou and other areas with a total land area of 400000 hectares, which will activate assets and create maximum value through multi-party cooperation strategies.

        Diversified investment portfolio injects stable profits

        Far Eastern New Century Corporation is developing a diversified and high-quality reinvestment business, with main targets including Far EasTone Telecommunications, Asia Cement Corporation, Far Eastern Department Stores, and other outstanding listed companies in the Far Eastern Group. Not only are they industry leaders, but they also have a macro growth strategy. Far Eastern New Century Corporation's investment business accounts for over 40% of its total assets, bringing stable dividend income every year and creating considerable room for appreciation. Based on the current stock prices of the investment group's listed companies, the total holding value of the stock market exceeds NTD170 billion, which is more than twice the book cost. The potential benefits exceed NTD85 billion, and the overall appreciation space is promising.

        Sustainable performance is highly recognized by all sectors

        Far Eastern New Century Corporation's sustainable performance has been recognized by various sectors, and it was awarded the "National Sustainability Development Award" in 2023. It received recognition for its first participation in the award, shaping a model value for the company; For the fourth time, it has won the highest honor of the Taiwan Corporate Sustainability Award (TCSA), the "Top 10 Sustainable Model Enterprises Award" in Taiwan. The Chinese and English versions of the sustainability report have also won the Best Performance Award. In 2024, it also won the Far sighted ESG Corporate Sustainability Award, becoming the only company in Taiwan to win both first and second prizes. At the same time, it has also received multiple international recognitions, including: Sustainability ESG risk rating ranked in the top 2% of the global chemical industry, FTSE Russell ESG score of 4.1, ranking among the top five listed companies in Taiwan, and being selected as the "Most Respected Enterprise" and "Best Management Company" in the Asian industry by two important investment indicators, Institutional Investor Magazine and Finance Asia, for three consecutive years. It has also won the "Most Outstanding Enterprise" award from Asiamoney for two consecutive years, making it a sustainable model student for Taiwanese enterprises.

        #