Having established a long-standing operational system entailing research and development (R&D), production, marketing, and service based on coal chemical, we at CSCC are also actively moving into the area of carbon materials. Specifically, mesophase graphites are used as anode materials for power batteries in electric cars, electric buses, electric scooters, consumer electronics, and storage systems, while advanced carbon materials can be applied to supercapacitors for wind power generation and light rail vehicles and lead-acid batteries for start-stop systems in vehicles. Both types of carbon materials are green products that serve as key green materials for a low-carbon environment.

Our sustainable development performance in 2023 is detailed as follows:

Economic aspect

In 2023, the Company's consolidated revenue amounted to NT$8.318 billion, and the net income before tax was NT$1.733 billion, representing decreases of 20% and 17% respectively compared to 2022. The primary reason for this decline is the nearly 20% drop in oil prices compared to 2022, leading to lower prices for key coal chemical products and a subsequent reduction in revenue. Although the sales volume of carbon material products did not match last year's levels, the increased volume and price of the main carbon material product, graphitized anode material, led to a revenue growth of approximately 6% compared to 2022. The global economy in 2023 was constrained by weak end-market demand and industry inventory adjustments, resulting in a slowdown in economic growth momentum. Although domestic private consumption remained relatively stable, weak export performance and lackluster corporate investment sentiment led to Taiwan's economic growth falling short of expectations. Additionally, the impact of extreme weather events due to climate change and the global commitment to achieving net-zero carbon emissions by 2050 have led to increasing demand for electric vehicles and energy storage industries. The Company will continue to promote the expansion and development of various carbon material products to become a key supplier of lithium battery anode materials. Furthermore, the Company will persist in advancing energy conservation and carbon reduction initiatives to achieve the short-, medium- and long-term goals of ESG.

Corporate governance

The Company continues to refine the TCFD risk/opportunity matrix, collecting financial quantitative data based on assessment information to conduct more in-depth analyses of the impact of various risks and opportunities on the Company's operations. The Taiwan Intellectual Property Management System (TIPS) implemented in 2020 received A-level certification in patents, trademarks, and trade secrets in 2022 (valid until December 2024). In July 2023, we obtained ISO 27001 certification for our Information Security Management System, enhancing the Company's cybersecurity environment.

Environmental aspect

From 2015 to 2023, the cumulative average annual energy-saving rate >1.52%, while water and wastewater intensity cumulatively decreased by an average of 8.7% and 5.0% respectively. In 2023, a total of 38 energy-saving projects were implemented at production facilities, resulting in a reduction of 1,870 tons of carbon emissions. Additionally, we completed carbon footprint assessments and verifications for six coal chemical products and four carbon material series products.

Social aspect

We continue to implement the project to assist Jin-Jhu Elementary School in the rural area of Neimen District, Kaohsiung City, and hold an average of 4.5 local neighborhood group activities, community associations, and environmental promotion activities each month.

Looking ahead, we will keep striving for a friendly environment, engaging in innovation, and fulfilling social responsibilities on top of the foundation we have built while maintaining good interaction and communication with various stakeholders. With the issuance of this Report, we endeavor to examine our action strategies and related performance, and make timely revisions to our short-, medium-, and long-term sustainable development strategies while forging progress at all times, so that we can become an excellent enterprise that cares for the Earth and realizes sustainable development.