Overview

A Word from the Chairman

A Word from the Chairman

In 2024, the global economy remained shrouded in recession, with inflation fluctuating, the continuation of the U.S.–China disputes, and the rising risks of geopolitical conflicts worldwide, among other uncertainties. End-market demand was weak, and China's large-scale dumping of low-priced steel products severely impacted the domestic steel market, causing widespread losses among major domestic steel mills, thereby placing the steel industry under operational pressure and challenges. In particular, the stainless steel market was dominated by Indonesia's Tsingshan Holding Group, leveraging the low-cost advantage of laterite nickel smelting to lead stainless steel market prices, while the prices of scrap stainless steel remained high, resulting in excessive self-smelting costs for steelmaking and further deepening the operational difficulties in this severe environment.

Impacted by the aforementioned unfavorable macroeconomic conditions, the Company still actively increased order intake, improved production utilization rates, and upgraded equipment to enhance industrial competitiveness. Production and sales volumes, as well as revenue, all reached new highs over the past three years, effectively mitigating product and capacity losses. Although the Company recorded a loss of more than NT$700 million in 2024, it was significantly reduced compared to the loss in 2023 and has been gradually brought under control.

In 2025, affected by U.S. tariff policies, the sharp appreciation of the New Taiwan Dollar, and global trade barriers, the overall market supply and demand, prices, and exchange rates are expected to experience significant volatility. Customer demand is likely to remain conservative and wait-and-see, and the market will continue to face severe challenges. To cope with the uncertainty of U.S. tariff policies and the impact of the New Taiwan Dollar's appreciation on the steel industry, the Company's strategic plan for 2025 will focus on actively improving operational performance and enhancing the financial structure. Efforts will be devoted to expanding both domestic and overseas sales channels, increasing capacity utilization to reduce idle capacity, as well as launching initiatives to develop niche products, broaden sales channels, and optimize cost structures, thereby improving core business operations and laying the foundation for long-term competitiveness. In terms of non-core operations, the Company will actively revitalize assets, increase fixed income from non-core businesses, and reduce tax expenses, all with the goal of achieving profitability.

The global trend toward carbon reduction and sustainable development is firmly established, and the steel industry is bound to move toward low-carbon transformation.

The EU's Carbon Border Adjustment Mechanism (CBAM) was formally enacted in April 2023 and began its trial phase in October 2023. Until December 2025, it remains a transitional period for the legislation, with formal implementation beginning in 2026. This will bring impacts and additional cost increases to high energy-consuming industries such as cement and steel. In addition, the pressure from Taiwan's carbon fee imposition and the continuous release of various regulations and requirements have increasingly tightened the timeline for setting carbon reduction targets, strategies, and plans for high energy-consuming industries. Steel mills are inevitably moving toward low-carbon transformation.

The Company will apply for a voluntary reduction program and obtain preferential rates to mitigate the impact on core business operations. Plans include phasing out energy-consuming equipment and developing green energy to reduce energy consumption and carbon emissions. By following the path of sustainable development, the Company demonstrates its commitment to sustainability and will continue to carry out greenhouse gas emission inventory and verification to monitor energy-saving and carbon-reduction performance and ensure compliance with reduction targets.


Emphasize employee welfare and establish a happy workplace

Tang Eng Company, to strengthen labor-management relations and improve the human rights protection system, supports and complies with the Universal Declaration of Human Rights and the United Nations Global Compact. In response to global human rights trends, the Company has established a human rights policy to protect and promote the realization of all employees’ human rights.

The Company upholds the philosophy that "employees are the most important asset of the enterprise," values employee salaries and benefits, respects harmonious relations between labor unions and the Company, and regards employee care as one of Tang Eng Company's fundamental responsibilities. In 2024, efforts were made to raise employee salaries, and the 20th Board of Directors’ 3rd meeting resolved to increase the base salary of employees by 3.3% for the 2024 fiscal year.

The Company has established a good and comprehensive workplace safety and health culture, providing employees with a safe working environment to protect their health and safety. It is committed to promoting labor work safety and health, preventing accidents, improving the work environment, and safeguarding employee health, striving toward the goals of "zero accidents, zero disasters, zero injuries and illnesses."


Implement Corporate Social Responsibility and Promote Social Welfare

While creating profits, increasing revenue, and being accountable to shareholders, a company must also bear social responsibilities toward customers, employees, the community, and the environment. These include adhering to business ethics, ensuring production safety, providing a good working environment, protecting the environment, supporting charitable causes, donating to social welfare, and assisting disadvantaged groups. We actively fulfill our corporate social responsibility by supporting social welfare causes, participating in public welfare activities, and doing our part to help those in need. We give back to local communities and society from multiple aspects, including environmental issues, caring for the disadvantaged, promoting culture, and assisting community development activities. We also continue to exert corporate influence through various channels to implement corporate social responsibility.