Sustainable Operations - Anticipating Mastering Change

In recent years, the political and economic environment has been turbulent and full of uncertainties. Geopolitical risks have risen, the US-China rivalry has intensified, and strategic resources and tariff policies are driving a reorganization of the global supply chain. The divergence of monetary policies, inflationary pressures, and currency fluctuations in major economies have all increased market uncertainty. In addition, supply and demand of energy and agricultural raw materials has been unbalanced by climate change, further testing the resilience and risk response of business operations.

Amidst these changes, the application of generative AI has expanded rapidly, injecting momentum into the transformation of industries and reshaping the competitive landscape. ESG is also gaining global acceptance. The EU was the first to launch the Corporate Sustainability Reporting Directive (CSRD), while the US is accelerating the implementation of draft SEC rules on disclosure of climate information. Japan, Singapore, and other Asian markets are also strengthening their transparency and accountability requirements for corporate sustainability information. ESG is no longer just an advocacy effort, but has entered a key era of legal compliance and risk control.

Namchow has established a presence in Taiwan, Thailand, China, and Japan in line with our philosophy of prudent and sustainable development. By connecting these bases and leveraging core advantages, we can exploit the synergies from shared and complementary resources to further strengthen our operational constitution and sustainability governance, take advantage of evolving trends through innovative thinking and strategic action, and build a solid foundation for future growth.

Forward-Looking Governance - Driving the Low-Carbon Economy

A backdrop of global political and economic shifts as well as extreme climate challenges necessitates a constant evolution of corporate governance. An integrated approach must be adopted from operational resilience and risk management to sustainability strategies. Namchow is continuing to strengthen our ESG governance structure by incorporating climate change into our corporate risk assessment and strengthening carbon inventory, energy saving and carbon reduction efforts, and green process management. We are making steady progress towards a new model based on the low-carbon economy.

For example: Expansion efforts focused on Thailand in 2024 with the new factory for phase II officially commencing production. This plant will incorporate high-efficiency automation and energy-saving equipment to enhance production efficiency and carbon emission management, further leveraging competitive advantages in the ASEAN market. Flexible and stable regional supply chains were realized through the integration of raw materials, manufacturing, and distribution channels.

In addition to environmental governance, we are actively building information security resilience to address the security challenges arising from trends in generative AI and digital transformation. Information security management mechanisms and internal protection frameworks were introduced to strengthen the protection of critical data and customer information. We also established organization-wide information security awareness through education, training, and response drills to enforce the core governance principles of information security as a cornerstone of operational resilience.

Technological Innovation and Safeguarding Food Safety

Food safety and healthy nutrition are our unwavering commitment to consumers. Namchow has long been committed to our core food business and continues to invest in R&D. Through cross-departmental collaboration, we optimize the formulas and technologies of our core products – frozen dough, baking fats, rice products, and ice cream – and introduced smart quality control, sensor systems, and raw material traceability mechanisms. Risk identification and quality monitoring were strengthened to ensure that our compliance with the highest safety standards throughout our production processes.

In response to growing consumer interest in healthy diets, environmental friendliness, and functional nutrition, we have continued to develop low-carbon, low-sugar, and plant-based food formulas. These are combined with natural ingredients and innovative processes to provide more diverse, healthy, and delicious product options that are aligned with the market trend towards green consumption and sustainable lifestyles. Innovative ideas and technologies are utilized to boost product competitiveness, consolidate brand trust, and build a safer, healthier, and more sustainable food value chain.

Energy Efficiency and Carbon Reduction - Driving Green Transformation

As carbon pricing systems and carbon border adjustment mechanisms gradually come into effect, pressure from climate risks and carbon reduction are increasing as well. The Namchow Group is responding actively to international trends by promoting process optimization and automation upgrades in factories, introducing high-efficiency, energy-saving equipment and energy management mechanisms, and continuing to reduce energy consumption and carbon emissions in our manufacturing processes. At the same time, we are evaluating options such as the introduction of renewable energy, waste heat recovery, and green packaging to build an operating model that combines smart and sustainable manufacturing. We will improve our overall energy efficiency to address external environmental changes.

In addition, Namchow is focusing on energy efficiency management and environmental friendliness in our daily operations through the establishment of an environmental performance tracking system. Data monitoring and accumulated experience are used to internalize and turn green transformation into a core competency. A sustainable value chain with climate resilience is being progressively constructed that brings the Company closer to realizing the net-zero vision, and demonstrates our responsibility and commitment on climate action.

Talent Co-prosperity - Building a Happy Workplace

The core drivers of sustainable development are the people in a company. Namchow has long been committed to creating a learning organization. Through education and training, job rotation, and on-the-job learning platforms, we help employees develop cross-disciplinary skills and practical problem-solving experience. Guided by the principles of "Knowing changes, Responding to change, Seeking to change, and Remaining unchanged," Namchow encourages employee growth in a fast-changing environment. Personal accomplishments are also closely linked to organizational goals to foster a workplace based on mutual trust, mutual support, and joint progress.

At the same time, we prioritize the physical/mental health and quality of life of our employees. Workplace safety, health promotion and benefits are constantly being improved to establish a friendly and inclusive work environment. We encourage diverse communication and teamwork to provide employees with a stable environment to fulfill their potential and a supportive environment for creating value. Through respect, trust and communication, we empower every Namchow employee to achieve work-life balance and foster a happy, mutually beneficial workplace.

Steady Progress - Co-Creating a Roadmap for Sustainability

The global political and economic environment is still full of variables in 2025. The new US administration's policies, currency and tariff strategies, and attitude to climate change will all affect future business developments and international divisions of labor. Namchow is actively capitalizing on the latest digital transformation opportunities brought about the AI revolution to achieve maximum benefits from innovation, upgrades, and operational optimization.

Looking to the future, Namchow will adopt a more forward-looking vision and more pragmatic approach to reinforce our existing strengths, strengthen corporate governance, connect with external resources, and create synergies for steady growth in the next phase. Over the past 73 years, we have navigated numerous challenges and turning points, consistently prioritizing integrity, trust-building, and value creation. Looking ahead, we will continue to collaborate with all stakeholders to forge a sustainable and mutually beneficial future, and strive to become a centennial enterprise.