Dear Shareholders,

Influenced by COVID-19 in 2020, China, known as a global manufacturing power, was first in lockdown, and then other countries were also affected, resulting into a slowdown in global economic development. The IMF released at the beginning of this year that the global economic growth shrank 3.5 percent last year. Although there is still no significant downward trend of the epidemic, with the development and popularization of vaccines, it should be effectively controlled and relieved. It is predicted that global economic activity will return to the pre-epidemic level this year. In the face of the impact of the epidemic, AcBel Polytech Inc. picked up the pace of development. Although it was greatly affected at the beginning of 2020, thanks to communication with external stakeholders and rapid internal adjustment, the Company gradually regained its footing in the second half of the year and achieved growth in revenue and profit for the whole year. We hereby report to our shareholders the annual operating results for 2020 and the operating prospect for 2021.

2020 Operating Results

he revenue for the whole year reached NT$20.983 billion, 1.94 percent up from the previous year. Net profit after tax was also boosted by sale of land to NT$1.313 billion. Earnings per share after tax was NT$2.54.

AcBel Electronic (Wuhan) was closed down by COVID-19 at the beginning of the year. In the first wave of the epidemic, it quickly developed countermeasures, including personnel protection, personnel management, supply chain investigation, customer communication, to strengthen its own conditions. The epidemic has changed some patterns of industry and the transfer of the end market, such as home office, teleconferences and other opportunities, which also drive the shipments of laptops, servers, and memory. In 2020, AcBel obtained the bidding project of a total of 316,000 meters. So far, its has shipped nearly 400,000 meters. It will continue to develop technologies and capabilities in the field of smart grid in line with policies. In terms of green energy layout, the Company also achieved great results, with the cumulative amount of solar power generation field reaching 137MWp of which 36MWp has been completed. In terms of electric vehicle related products, the Company has co-developed motor drivers with leading large manufacturers, and also cooperated with well-known electric vehicle manufacturers to cut into the power management system of power switching plant, thus becoming a comprehensive integrated power service platform.

AcBel has also been recognized for its efforts in corporate governance and corporate social responsibility. We have won the Taiwan Corporate Sustainability Report Awards - Platinum Award for Electronic Information Manufacturing, Excellent Enterprise - Innovation and Growth Award, Excellent Enterprise - Climate Change Award in the "2020 TCSA Taiwan Corporate Sustainability Award", and become the first to pass the TCFD Maturity Model Verification [Excellent - Highest Level] in the global electronics industry, demonstrating our commitment to giving back to the community and implementing corporate social responsibility.

Business Environment and Development Strategies

AcBel upholds the commitment of "We Power the World with Sustainable/Renewable Energy and High Efficiency Power Supply", will take its own research and development efficiency as the core in the future, join the concept of providing positive energy of the earth, and strive to create the maximum value for customers, employees and shareholders. In combination of strong R&D momentum, we step into the application of the areas of clean energy, solar power plant, medical equipment and electric vehicle related power products, with a view to become the innovative leading company of smart green energy in the power industry.

2021 Operating Prospect

It is expected that the performance of consumer power supply will continue to grow, the market for terminal applications such as smart home, e-sports, IoT, and monitoring systems will expand increasingly, the industrial power supply will grow rapidly due to 5G application cloud data center, artificial intelligence, big data application and popularization of electric vehicles, which will greatly drive the market size and customer order demand.. In the fuel cell power supply sector, as the global market share of key international customers increases, AcBel plans to expand its production capacity in Taiwan to drive its performance of the hardware power supply products to increase year by year. At present, in addition to power supply products, we are also engaged in power supply system integration and assembly business, so as to improve the overall shipment margin and revenue scale.

The construction of our new plant in Tamsui commenced in early January 2020, which is expected to be completed by the end of 2021 and to be officially put into operation in the first quarter of 2022. By then, the Company will fully introduce the intelligent production line, which is expected to contribute a capacity of 2.5 billion to increase revenue and profit. The old site will be demolished and rebuilt after the new plant comes online, which is expected to be put into mass production in the next 2~3 years.

Going forward, we will focus on the technological deepening of 5G communication, vehicle power supply, aerospace power supply, high-end consumer and medical power supply with forward-looking application technologies, demonstrating our strong ambition and constant self-requirements and challenges in forward-looking technology development.



                                                                                                                                                                                                                                                               AcBel Polytech Inc.

                                                                                                                                                                                                                                                               Chairman: Hsu Sheng-Hsiung

                                                                                                                                                                                                                                                               President:Hsu Chieh-Li

                                                                                                                                                                                                                                                               Chief Accountant:Yeh Jin-Mao