Far Eastern New Century Corporation Holds 2024 Regular Shareholders Meeting

        Far Eastern New Century Corporation held a regular meeting of shareholders on June 27th, with Douglas Hsu leading the management team to attend and report to shareholders on the performance of the company's three major operating areas, including production, investment, and land development, as well as future development directions.

        Stable performance in 2023, operational growth in Q1 2024, and optimistic dividend prospects

        In the face of global economic downturn in 2023, Far Eastern New Century Corporation maintained a stable performance, with a consolidated revenue of NTD257.2 billion and a net profit after tax attributable to the parent company of NTD8.23 billion, a growth of 1%, with a earnings per share of NTD1.64. During the meeting, a cash dividend of NTD1.35 was issued, with a cash dividend yield of 3.8%. In Q1 2024, the merged 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 operating performance expectations, 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. In order to consolidate the company's leadership position and drive the green transformation of the polyester industry, we actively expand the recycling capacity of polyester, including the Philippine factory that will be put into operation in 2023, as well as the Kansai and Vietnam factories in Japan that will soon be put into operation in 2024. The US recycled polyester factory also completed capacity expansion in the first half of 2024. In addition, a new green recycled polyester factory in Malacca, Malaysia is expected to be put into operation by the end of 2025.

        In 2024, the company welcomed Olympic business opportunities, and its recycled polyester products were favored by international sports brands. They not only became jerseys for multiple national teams, but also drove up orders for environmentally friendly shoe materials and functional fabrics. At the same time, products such as food packaging and special bottles will also experience 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.

        Welcoming the wave of sustainability, Far Eastern New Century Corporation has set transformation goals of 50% carbon reduction, 50% green products, and 50% green raw materials by 2030, actively promoting net zero transformation. Strategies include 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 developed a comprehensive digital transformation strategy, applying AI to production, business, administrative management, etc., creating an intelligent operating model, and establishing an AI promotion group to develop intelligent production lines, optimal decision-making, human-machine collaboration, Internet of Things (IoT), edge computing and other applications. In 2023, with a focus on the technological innovation brought by generative AI, the company has developed multiple AI applications such as personal assistants, enterprise platforms, and intelligent customer service using its own technology. This not only improves operational management efficiency, but also leverages cross regional collaboration and comprehensive effectiveness.

        In addition, Far Eastern New Century Corporation has partnered with the 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 through technological capabilities.

        Implementing land activation to release asset value

        Rich 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. At present, the 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 Taipei Far Eastern Group Communication Park is not only Taiwan's first privately developed communication 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 completed in the park and leased by internationally renowned companies such as Google, bringing in generous rental returns. In addition, the high-end residential building "Far Eastern Construction Forest" in the park has been fully sold, with sales exceeding NTD5.5 billion. In addition, construction of two 27 story residential buildings has begun to meet the urgent market demand.

        The land change of the "Neili Land Development Case" in Taoyuan City has been approved by the local government and is now being reviewed by the Ministry of the Interior. It will be developed into a comprehensive living park, including commercial and residential areas, and will continue to revitalize land assets, 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 portfolios inject stable profits

        Far Eastern New Century Corporation is developing diversified and high-quality investment businesses, mainly targeting top performing listed companies such as Far EastTone Telecommunications, Asia Cement Corporation, Far Eastern Department Stores, etc. Not only are they industry leaders, but they also have macro growth strategies. The investment business of Far Eastern New Century Corporation accounts for over 40% of total assets, bringing stable dividend income every year and creating considerable appreciation space. Based on the current stock prices of listed companies in the investment group, the total stock market value exceeds NTD 170 billion, which is more than double the book cost. The potential benefits exceed NTD 85 billion, and the overall appreciation space is promising.

        Sustainable performance has been highly recognized by various sectors

        Far Eastern New Century Corporation's sustainable performance has been recognized by various sectors. In 2023, it was awarded the National Sustainability Development Award, and its first participation in the award was recognized, shaping a model value for the enterprise; The company has won the Taiwan Corporate Sustainability Award (TCSA) for four consecutive times, and the Chinese and English versions of the sustainability report have also won the Best Performance Award. In 2024, it also won the Foresight ESG Enterprise Sustainability Award, becoming the only company in Taiwan to hold the Double First Award. At the same time, it has also received multiple international recognition, including being ranked among the top 2% in the global chemical industry in terms of ESG risk rating by Sustainalytics, achieving a good score of 4.1 in FTSE Russell ESG rating, 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 FinanceAsia, for three consecutive years. It has also been awarded the "Most Outstanding Enterprise" award by Asiamoney for two consecutive years, making it a sustainable model for Taiwanese enterprises.

        #