To those who are concerned about sustainability at Radiant Opto-Electronics:
 

Despite gradually emerging from the uncertainties and anxieties of the post-pandemic era, the global economy and industrial development continue to be fraught with high levels of uncertainty due to factors such as the ongoing conflicts in Ukraine and the Israel-Arab, the Red Sea crisis, soaring inflation, geopolitical tensions, and technological disruptions. "It was the best of times, it was the worst of times." Even amidst formidable challenges posed by the macro environment, Radiant Opto-Electronics persists in enhancing corporate resilience through ESG practices. Leveraging its profound innovative capabilities, we have expanded our technological research and development prowess, solidifying our unparalleled leadership position in the integration of optics, mechanics, and electronics (OME), while advancing towards new milestones in smart manufacturing through digital transformation and data analytics. Radiant Opto-Electronics, with its strong foundation built over the years, competitive edge, and agile talent pool, maintains optimal flexibility, enabling swift adjustments to mitigate external challenges and impacts. Over the period from 2018 to 2023, Radiant Opto-Electronics has achieved remarkable revenue growth, with earnings per share (EPS) consistently exceeding one share of capital for six consecutive years. We express our gratitude for the support and acknowledgment from all sectors.

2023 was also a year full of inspiration. We have witnessed the deep and unpredictable impact of the overall economy and geopolitics on the entire industry chain, with rapidly shrinking visibility into customer demand. In the face of numerous uncontrollable external factors, the only thing we can control is our own behavior. Since its establishment, Radiant Opto-Electronics has had a strong focus on its overall strategic planning: "Maximizing profitability" is the highest principle. Although we offer a limited variety of optical components (with a focus on backlight modules), we devote our time and effort to thinking about how to "innovate" in every aspect of producing backlight modules. From optical design and sample evaluation for mass production, to quality control for rapid and large-scale shipments, and minimizing inefficiencies and waste, all employees at Radiant Opto-Electronics are committed to doing things well and providing "Optical Solution" to our customers. Despite the pandemic and the overall economic impact, Radiant's profitability has remained stable and even strengthened in recent years, reaffirming our commitment to the right endeavors. Precision optical components will continue to evolve towards lighter and thinner designs with smaller pattern structures. There will be a stronger demand for Optical Solution, and customers and suppliers will require professional and long-term strategic partners. The operational capabilities honed by Radiant over the past 10 years have provided a solid foundation. However, we still need to initiate several critical strategic investments and demonstrate even more precise execution capabilities in order to create maximum value for the company, customers, and shareholders in the long term.

Moreover, we completed the acquisition of Nanocomp, a Finnish optical company, marking the first year of Radiant's "Dual Engine Evolution." In the future, we will strengthen our core capabilities in design, molds, and processes through both "self-enhancement" and "external investment and mergers and acquisitions." Radiant Opto-Electronics will continuously focus on long-term customer needs, allowing resources to be logically and systematically deployed. In 2023, we also initiated projects such as the manufacturing base in Vietnam and the Advanced Technology Research and Development Center in Kaohsiung. These are important investment projects aimed at creating long-term value and enhancing supply chain resilience.

In order to systematically address corporate sustainability issues and establish a more robust and secure foundation for cybersecurity governance, Radiant Opto-Electronics established a new Information Security Committee in 2023. This initiative aims to ensure that information security-related policies align with the company's strategic development. Concurrently, the adoption of AI-driven digital transformation technologies has been implemented to create a more agile and real-time cloud domain, thereby reducing work schedules and crisis response times. Additionally, the ISO 27001 Information Security Management System has been introduced to concretely implement information security policies, safeguard customer data and company intellectual property, and strengthen the capability to respond to information security incidents. In response to climate action, in 2023, Radiant Opto-Electronics implemented the "UL2799 Zero Waste to Landfill System," yielding impressive results across all four manufacturing sites with a growth rate exceeding 20% compared to the previous year. The zero landfill conversion rates for the three major production bases in mainland China have reached 90%, with the Guangzhou factory surpassing 95%.

Talent development is a crucial focus for Radiant Opto-Electronics, where employees are regarded as vital "assets" to the Company. Alongside the internal learning management system of "Radiant Academy," an agile talent pool is being cultivated, complemented by enhanced employee welfare initiatives. The Company is committed to fostering a happy workplace that matches individuals with suitable roles and embraces diversity and inclusivity. Radiant Opto-Electronics has also been honored with the "TTQS Talent Quality-management System - Silver Award" from the Workforce Development Agency, Ministry of Labor. Moving forward, the Company will continue to optimize its group performance evaluation system, assess successor and key talent development programs, and establish a talent ladder organization that embodies Radiant Opto-Electronics' most competitive workforce.

We are honored to receive recognition through various sustainability awards following years of dedicated efforts in the sustainability field. In our stakeholder communications and disclosure practices, Radiant Opto-Electronics not only received accolades such as the TCSA "Top 100 Sustainable Exemplary Enterprises Award" and the "Silver-level Sustainability Report (Electronics Manufacturing Industry)" but also attained the bronze award for the "Global Corporate Sustainability Award (English Version Sustainability Report)" from GCSA for the first time. Through continuous optimization of environmental sustainability performance, Radiant Opto-Electronics significantly improved its score by two levels in the highly reputable CDP Climate Change Questionnaire, achieving recognition with a B management rating. Regarding carbon management policies, Radiant Opto-Electronics was once again listed in the Business Weekly's "Top 100 Carbon Competitiveness Ranking." In the realm of social engagement, our commitment to supporting local cultural arts earned us the Ministry of Culture's "Arts & Business Award" in the categories of "Permanent Award (Bronze)" and "Special Award - Corporate Culture Award." Radiant Opto-Electronics leverages its influence through the enlightenment of light and endeavors for positive social impact, aspiring for blossoming effects step by step.

In the face of challenges such as the future digital technology transformation, increasing attention to biodiversity issues, and the acceleration of corporate efforts towards net-zero and carbon reduction throughout the supply chain, Radiant Opto-Electronics will approach each new scenario with caution and openness. We will continue to strengthen our innovation and research capabilities, build agile and resilient teams, deepen ESG sustainability governance, and steadfastly pursue our three major visions: "environmental coexistence, social prosperity, and mutual benefit." Our goal is to establish ourselves as the world's premier and irreplaceable core in the optical technology service industry. Together with our global partners and stakeholders, we will collaborate wholeheartedly to enhance Radiant Opto-Electronics' competitive advantage and leadership position in the global industry, striving to create a better and more sustainable future for all.