Issue Date: August 19, 2026
 

Letter from the Chairman

In 2025, the global economy experienced a complex and divergent development trend shaped by the intersection of high policy uncertainty and structural transformation. Adjustments to U.S. tariff policies, escalating geopolitical tensions, and continued financial tightening exerted multiple pressures on overall industrial growth momentum. According to the Global Risks Report 2025 published by the World Economic Forum (WEF), policy flexibility and structural adaptability have become critical foundations for sustainable business operations. For Coretronic, the past year represented not only a severe test amid dramatic external volatility, weaker operating momentum, and short-term profitability pressures, but also an important opportunity for driving transformation. Despite the challenges posed by economic cycles, we have remained steadfast in our core values of “innovation, professionalism, and sustainability”, continuously strengthening our technological capabilities and long-term competitive advantages. I would like to sincerely thank all stakeholders for their unwavering support and partnership. Their trust has enabled us to demonstrate exceptional innovation resilience amid uncertainty and earn recognition as one of the Clarivate “Top 100 Global Innovators” for the third consecutive year. This achievement is especially meaningful in challenging times. It not only highlights our robust R&D capabilities but also inspires us to further enhance operational efficiency and fulfill our sustainability commitments with a more meticulous approach, thereby meeting the long-term expectations and trust of our stakeholders.

Deepening Climate and Nature Governance: Critical path from Carbon Reduction Achievements to Value Transformation

We firmly believe that climate change and natural ecosystems are no longer merely environmental issues; they have become key factors of long-term corporate resilience and value creation. In 2025, Coretronic demonstrated outstanding execution in its decarbonization effort. Absolute greenhouse gas emissions (Scopes 1 and 2) were reduced by 45% compared to the base year (2021), while Scope 3 emissions achieved a remarkable 88% reduction. These results continue to outperform the Science-Based Targets (SBT) pathway and demonstrate steady progress toward our “Net Zero Commitment”. In climate governance, we transformed climate-related risks and opportunities into measurable financial impact indicators for the first time, strengthening the linkage between business strategy and financial resilience through monetized assessments. At the same time, we formally adopted the TNFD framework and the LEAP approach in 2025 to systematically evaluate our dependencies and impacts on nature. In 2026, we will publish our first TCFD & TNFD Report, integrating both climate and nature-related topics. In the aspect of product sustainability transformation, we have established clear quantitative targets throughout the product life cycle based on our “Sustainable Raw Material Policy” and green product design guidelines. By incorporating recycled plastics and recycled metals, optimizing manufacturing energy efficiency, enhancing product performance, utilizing environmentally friendly packaging materials, and adopting sustainable aviation fuels for air transportation, we systematically reduce product carbon footprints at every stage. We have also introduced recyclable and easy-to-disassemble designs to extend product life cycles. Through these efforts, we aim to transform technological innovation into tangible competitive advantages and continue developing innovative solutions that deliver both economic value and environmental benefits.

Implementing Diversity and Inclusion: Building a Prosperous Social Network Across Borders and Generations

People have always been at the heart of Coretronic’s advancement towards sustainability. We are committed to creating an inclusive workplace that transcends national and generational boundaries. In 2025, we completed our first human rights due diligence assessment and living wage survey. We also pledged that 100% of employees at our Taiwan plants will earn salaries above the living wage by 2030. As for inclusion, we promote two-way knowledge exchange through the “Project-Three-Generation” and a reverse mentoring system while cultivating international management talent through the “Vietnam INTENSE MA Program”. We have also launched AI empowerment initiatives to strengthen employees’ digital competitiveness, transforming our R&D capabilities into 20 patented innovations and demonstrating organizational resilience through the integration of technology and multi-generational talent. Regarding social well-being, we extend our commitment to inclusion into community engagement. Through long-term partnerships with social enterprises, local universities, and nonprofit organizations, we continue implementing six major initiatives: “Light Pioneer”, “Elderly Smile”, “Love Followers”, “Dream Walkers”, “Light Wishes for the Rurals”, and “Farm the Hopes”. These programs leverage our core expertise to address pressing social issues. To bridge the digital divide, we have operated the “Light Pioneer” Program since 2016. In 2025, we further launched the “Future Light Camp 3.0” AI Education Program, guiding students in rural communities to show their creativity with generative AI tools while helping teachers enhance students’ digital literacy. In response to the challenges of a super-aged society, we expanded the “Elderly Smile” Program by introducing home-care services delivered by new immigrant caregivers through the “Warm Restaurant” initiative. This initiative not only supports elderly individuals living alone but also creates professional employment opportunities for new immigrants, embodying the value of cross-cultural inclusion. In addition, the “Warm Homes” initiative has improved residential safety for the elderly. From cultivating global talent internally to supporting new immigrants and elderly care externally, Coretronic continues to break down barriers of geography and background, creating a more resilient and compassionate society through practical action and fulfilling our commitment to sustainable development.

Embedding Sustainable Governance: From Performance Accountability to International Excellence

We regard sustainable governance as a core driver of corporate development. In 2025, we formally incorporated “Annual Material Topics” and “Sustainable Development Goals” into the compensation mechanisms of the Chairman, President, and Chief Financial Officer, thereby establishing a direct linkage between ESG performance and executive remuneration. This transformation toward “performance accountability” demonstrates our determination to integrate ESG into the core responsibilities of senior management and ensures that corporate decision-making remains closely aligned with long-term value creation. Supported by a strong governance foundation, we continue to receive recognition from leading international institutions. In 2025, we were included in the S&P Global Sustainability Yearbook 2026 for the first time and received the “Industry Mover” Award, reflecting strong capital market confidence in the quality of our ESG disclosures. We also earned an EcoVadis “Gold Medal” for the first time, ranking among the top 2% of companies globally and further strengthening our sustainability competitiveness across the supply chain. In addition, we have ranked among the top 5% of the TPEx-Listed Companies in the "Corporate Governance Evaluation" for eleven consecutive years, providing strong evidence that Coretronic has successfully transformed its sustainability commitment into a resilient competitive advantage.

Looking ahead, Coretronic will continue investing in the development and transformation of core technologies, deepening our expertise in key optical components and advanced technologies while integrating AI-enabled intelligent applications. We remain committed to delivering innovative and competitive solutions to customers worldwide. In response to a rapidly changing environment, we will accelerate organizational transformation and operational optimization to enhance long-term resilience and adaptability. We will also take more concrete actions to address climate and nature-related issues by embedding low-carbon principles and circular design concepts throughout the entire product life cycle. At the same time, we will continue supporting global sustainability initiatives and uphold integrity-based governance as the cornerstone of our operations. Together with our stakeholders, we will implement diversity and inclusion, expand positive social impact, safeguard long-term value, and achieve our sustainable development goals.