Words from the Chairman
Words from the Chairman
Sustainable Operations: Foreseeing and Mastering Change
The political and economic environment in recent years has been turbulent and fraught with uncertainty. Geopolitical risks have increased, the US-China confrontation has intensified, and strategic resources and tariff policies have led to a restructuring of global supply chains. Divergent interest rate policies among major economies, inflationary pressures, and currency volatility have exacerbated market uncertainty. Abnormal weather, energy prices, and imbalances in the supply and demand of agricultural and industrial raw materials further test the resilience and risk management capabilities of businesses.
Amid these changes, generative AI is rapidly expanding its applications, injecting transformative momentum into industries and reshaping the competitive landscape. Global ESG development is also deepening. The EU has taken the lead in launching mandatory disclosure standards under the CSRD, the US is accelerating the SEC's draft climate information disclosure bill, and Asian markets such as Japan and Singapore are also strengthening corporate sustainability transparency and accountability requirements. ESG is no longer just an initiative, but has entered a critical era of comprehensive legal compliance and risk management.
Nan Chiao adheres to the concept of steady and sustainable operation, with a presence in Taiwan, Thailand, China, and Japan. By connecting these bases, leveraging its core strengths, and maximizing the synergy of resource sharing and complementarity, Nan Chiao continuously strengthens its operational structure and deepens its sustainable governance. With innovative thinking and strategic actions, it keeps pace with the times, seeks progress while maintaining stability, and lays a solid foundation for the next stage of growth.
Forward-looking Governance Drives the Low-Carbon Economy
Against the backdrop of global political and economic changes and extreme climate challenges, corporate governance must continuously evolve, integrating operational resilience, risk management, and sustainability strategies. Nan Chiao continues to strengthen its ESG governance structure, incorporating climate change into its business risk assessments, deepening carbon inventory, energy conservation and carbon reduction, and green process management, steadily moving towards a new low-carbon economic model.
For example, with Thailand as the main expansion focus, the second phase of the new plant officially commenced production in 2024, introducing highly efficient automation and energy-saving equipment to improve production energy efficiency and carbon emission management efficiency, further leveraging the competitive advantage in the ASEAN market. Through the integration of raw materials, manufacturing, and distribution channels, the region's supply chain resilience and stability are achieved.
In addition to environmental governance, Nan Chiao is also actively building cybersecurity resilience to address the cybersecurity challenges brought about by generative AI and digital transformation. It has implemented information security management mechanisms and internal protection architectures to strengthen the protection of critical data and customer information. Through cybersecurity education and training, as well as contingency drills, it has established cybersecurity awareness among all employees, implementing the core governance philosophy that cybersecurity equals operational resilience.
Technological innovation to safeguard food safety
Food safety and healthy nutrition are our unwavering commitments to consumers. Nan Chiao has long been deeply rooted in the food industry, continuously increasing its investment in research and development. Through cross-departmental collaboration, we optimize the formulas and technologies of core products such as frozen dough, baking oils, rice products, and ice cream. We also introduce smart quality control, sensing systems, and raw material traceability mechanisms to strengthen risk identification and quality monitoring, ensuring that our products meet the highest safety standards throughout the entire process.
As consumers increasingly value healthy eating, environmental friendliness, and functional nutrition, Nan Chiao continues to develop new formulas for low-carbon, low-sugar, and plant-based foods. Combining natural ingredients with innovative processes, they offer a more diverse range of products that balance health and deliciousness, responding to market trends towards green consumption and sustainable living. By using innovative thinking and technology to enhance product competitiveness, solidify brand trust, and are committed to building a safer, healthier, and more sustainable food value chain.
Energy saving and carbon reduction, promoting green transformation.
With the gradual implementation of policies such as carbon fees and carbon border adjustment mechanisms, climate risks and pressure to reduce carbon emissions are intensifying. Nan Chiao Group is actively responding to international trends by optimizing processes and upgrading automation in its factories across various locations, introducing high-efficiency energy-saving equipment and energy management mechanisms to continuously reduce energy consumption and carbon emissions in its processes. Simultaneously, the group is evaluating solutions for renewable energy adoption, waste heat recovery, and green packaging materials to create an operational model that combines smart manufacturing and sustainable manufacturing, comprehensively improving energy efficiency to cope with changes in the external environment.
In addition, starting from its daily operations, Nan Chiau deepens its energy efficiency management and environmentally friendly actions, builds an environmental performance tracking system, and internalizes green transformation into a core competitiveness through data monitoring and experience accumulation. It gradually builds a supply system with sustainable value and climate resilience, steadily moving towards the net-zero vision, demonstrating its responsibility and determination for climate action.
Talent achieves mutual prosperity, building a happy workplace
Talent is the core driving force for the sustainable development of an enterprise. Nan Chiao has long been committed to building a learning organization, assisting employees in developing cross-disciplinary capabilities and practical problem-solving experience through education and training, rotation systems, and on-the-job learning platforms. With "knowing change, adapting to change, seeking change, and remaining constant" as the core of its organizational culture, Nan Chiao encourages employees to grow in a rapidly changing environment and closely integrates personal achievements with corporate goals, forming a work atmosphere of mutual trust, mutual assistance, and common progress.
Meanwhile, Nan Chiu values the physical and mental well-being and quality of life of its employees, continuously optimizing workplace safety, health promotion, and welfare systems to create a friendly and inclusive work environment. We encourage diverse exchanges and teamwork, allowing employees to unleash their potential in a stable environment and create value through support. Through respect, trust, and communication, we help every Nan Chiu employee find a balance between career development and work-life harmony, working together to build a happy and prosperous workplace.
Moving forward steadily to create a sustainable blueprint
In 2025, the global political and economic environment will remain fraught with uncertainty. The policy direction of the new US administration, its monetary and tariff strategies, and its stance on climate action will all influence future business operations and the international division of labor. Meanwhile, the AI wave continues to penetrate the global landscape, and Nan Chiau is actively seizing this opportunity for digital transformation, seeking to maximize the benefits of innovation, upgrading, and operational optimization.
Looking to the future, Nanqiao will adopt a more forward-looking vision and more pragmatic approach to deepen its existing strengths, strengthen corporate governance, and connect with external resources to create synergy and steadily move towards the next stage of its growth trajectory. For 73 years, we have weathered countless turning points and challenges, always upholding integrity, cultivating trust, and pursuing value. In the future, we will continue to work hand in hand with all stakeholders to create a mutually beneficial and sustainable corporate blueprint, and embark on the path to becoming a century-old enterprise.
