Create Value for Shareholders
Sustainable management is the Group’s core mission. We hope to generate long-term and stable value for us and our stakeholders through continued R&D investments, deployment of upstream and downstream resources, and increased profitability. We continue to increase our investments in Mini/Micro-LED displays, smart sensors, and microelectronic components for III-V compound semiconductors, as well as other advanced technologies to stabilize our financial structure, build our R&D capabilities, and optimize resource utilization, thereby consolidating our value chain and industrial positioning, consolidating competitive advantages within our supply chain, and establishing a competitive ecosystem. Revenues for 2022 declined compared with 2021, mainly due to macroeconomic impacts, though there are currently no risks associated with sales concentration.
Tax Policies and Management
In response to international trends in tax governance and sustainability taxation, Ennostar implements rigorous management of tax proceedings in accordance with internal tax policies and pays all taxes in accordance with law. We conduct annual reviews of our tax policies to effectively control tax risks and ensure sustainable development. We have established a dedicated tax management unit staffed with professional and experienced tax managers as well as personnel who execute routine administrative and management tasks related to tax affairs and assist the head of the accounting division in planning and fulfilling tax duties. The chief financial officer assumes all ultimate responsibilities for tax management. Additionally, the Group’s main operational sites are located in Taiwan and China, so are faced with rapid changes in domestic and foreign tax regulations. We are attentive of changes in tax-related policies, adopt appropriate responses and strategic adjustments, and strengthen our knowledge through professional services provided by external tax consulting agencies.
The Group’s tax policies are as follows:
• All operations are handled in accordance with relevant tax regulations
• Transactions between affiliated enterprises are handled in accordance with conventional transaction principles
• Enhance information transparency of financial reports and ensure that tax disclosures adhere to regulations and announced policies
• Avoid use of tax havens and tax planning measures for tax evasion purposes
• Avoid transferring corporate profits to countries with low tax rates
• Build mutual trust and respect with tax authorities
• Consider impacts from taxes when making all important corporate decisions
• Analyze operational environments and use management mechanisms to assess tax risks
Sustainable Investment Strategies
Our investment strategic blueprint adopts a dual-investment strategy which seeks to optimize existing operations and invest in high-potential businesses. We hope to build diverse drivers of growth over the long term, and have invested in the three aspects of sustainable environmental sustainability, smart health, and meaningful living, utilizing technology in continued investments and developments that improve public convenience and connections, enhance health and safety, reduce environmental impacts, and realize environmental sustainability. Our market positioning is focused on next-generation displays, automotives, sensors, special lighting, and other high value-added applications. We have also extended our capabilities to III-V compound semiconductor epi wafers and manufacturing processes. Our industry investments are linked to sustainable development through environmental, social, and corporate governance aspects, and we achieve efficient manufacturing and effective component development through smart transformations that lower environmental and social impacts from our production processes. Additionally, we also set green economy technologies such as carbon capture, hydrogen power, water resource recycling, and other green technologies as key investment aspects to implement digital transformation and smart manufacturing while focusing on future developments and building long-term growth drivers for Ennostar to achieve our vision of sustainable development. We reference changes to the United Nations Principles for Responsible Investment when formulating investment strategies, actively consider ESG issues when making investment decisions, and disclose ESG implementations and results achieved through current investments as appropriate. We continue to be attentive of sustainable investment standards formulated within the industry and related implementations as we gradually establish our sustainable investment strategies and standards. We also incorporate sustainable investment and ESG concepts in our policies and assessment standards to ensure that we are adhering to related principles.