Letter to Shareholders

Dear shareholders,

COVID-19 variants continue to ravage the world this year, with lockdowns and access control everywhere. This affected services, manufacturing and transportation services and resulted in the poor performance of the global economy. The most recent forecast by the IMF (International Monetary Fund) for the global economic growth is 4.4%, down slightly from the previous forecast of 4.9%. That said, the availability of vaccines and the coverage of vaccinations have effectively eased of the pandemic. The IMF forecasts the growth in developed economies to exceed the pre-COVID level in 2024. We have deployed anti-COVID measures by referring to the past experience in order to deal with the uncertainties and the impact of the pandemic and the supply chain instability. We also continued to communicate stakeholders and effectively mitigated the effect on operations. With all these efforts, our revenue this year grew from last year. We report to our shareholders here with sincerity our 2021 operational achievements and 2022 business outlook. 

2021 Operating Results

The annual revenue reached NT$21.906 billion, up by 4.4% from the previous year. The annual net income was NT$602 million and the earnings per share was NT$1.17. An internal anti-COVID mechanism has been put in place, due to the pandemic and the supply chain instability through the year. The measures adopted include personnel protection, staff management and staggered shifts. The external communication with customers regarding demand and supply, surveys on the supply chain and transportation coordination effectively mitigated the pandemic impacts. COVID-19 has changed the human mobility and work patterns. Home working drives the shipment of notebook computers, data center servers, storage and networking equipment. By the end of last year, we have been awarded tenders for about 700,000 smart meters and we have delivered nearly 600,000 units to date. We continue to develop smart grid technology and capabilities, in alignment with the policy. We have also made good progress in new energy. The accumulated solar generation installations reached 145MWp in capacity and have generated 91MWh. We continue to work with leading players for the development of motor drivers of electric vehicles and we expect to pass the verification and ship in small quantities this year. We are also collaborating with renowned electric motorbike makers in the power management system for battery swapping stations. In sum, we strive to become a total-solution integrated platform for power services.

AcBel has been recognized for our efforts in corporate governance and corporate social responsibility. We received as a Top 50 Corporate Sustainability Award in the 14th Taiwan Corporate Sustainability Award (TCSA); TCSA Corporate Sustainability Report Award for Electronic Information Manufacturing Industry -Platinum Award; and the silver award in the first TCSA Taiwan Sustainability Action Award (TSAA) in 2021. Our TCFD (Task Force on Climate-Related Financial Disclosures) report was verified by third parties and rated as a pioneer, the highest level. All these awards and prizes are a testimony of AcBel’s dedication to returning to the society and commitment in 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. 

2022 Operating Prospect

We are developing our business in three domains: power supply for consumers and industries, new energy, and e-mobility. In the power supply market for consumers and industries, we anticipate continued growth in the consumer segment driven by applications such as smart homes, notebook computers, e-sports, IoTs (Internet-of-Things) and surveillance systems. The industrial power supply segment will see rapid expansion in the market size and orders from customers due to growth in data centers, artificial intelligence, Big Data analytics driven by gradual maturing of 5G use cases and higher penetration of electric motorcycles and vehicles. The Company's sales of power supply products are expected to be 91,339 thousand units this year. The fuel cell market is seeing increasing awareness in sustainability for the environment and the economy. All the countries in the world are developing clean energy. Our key international customers are enjoying higher market shares and gradually completing capacity plans in Taiwan. This underpins our year-over-year growth in power supply products. In addition to power supply products, we are also engaged in the integration and assembly services of power supply systems, to boost gross profits and revenues.

The construction of the new Tamsui plant began in January 2020. The pandemic disrupted the original plan for completion at the end of 2021. Currently, ramp-up is scheduled for the third quarter of 2022 with smart production lines and relevant facilities across the board. This is expected to boost revenues and profits. Once the new plant starts production, an application will be submitted to reconstruct the old plant. Hopefully the revamped capacities will join production up over the next two to three years.

Going forward, we will focus on the technological deepening of 5G communication, onboard 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 technology development.

 Wish all shareholders.

 Good health and good luck.



AcBel Polytech Inc.

Chairman: Hsu Chieh-Li

President: Hsu Chieh-Li

Chief Accountant: Yeh Jin-Mao