Letter to Shareholders

Dear Shareholders,

In the uncertainty of fast changes of global economic conditions, AcBel management, based on the pragmatic principle, leaded all employees to adapt to the change of general environment, performed the corporate mission of Love Earth by energy saving and carbon reduction, and accomplished a perfect end of 2018 business operation. With persistent efforts of AcBel in product development and new energy business, 2018 revenue growth exceeded the target, and the results of exploration of new energy business emerged and the its effect would become significant. I hereby report to each shareholder the 2018 operating results and the 2019 business outlook of AcBel.

2018 Business Results

The consolidated operating revenues were $18,733 million, indicating the recovery of growth strength, an increase of 5.23% YoY; adding the recognized portion of gains on sale of lands in Dongguan, net income after tax was $1,005 million, and earnings per share after tax were $1.95.

Although the operating environment aspect was affected by the rise of purchase costs of raw materials and the heating up of China-USA trade war, AcBel continued its success in every aspect. AcBel practiced adjustment to quality, speed, and change in cost structure in response to market; therefore, the contributed revenue still indicated a growth trend. Customers of data center, including telecommunication operators and enterprise users, and large Data Center and 5G will gradually commercial run in 2019, which together with internet of things and auto driving vehicles will boost Edge Cloud computation. In addition, the demand of equipment including cloud computing, AI, server and internet transmission will continually push the growth of AcBel.

AcBel made its best efforts in developing green new energy business, with a hope to upgrade from power supply manufacturer to power supply service provider. We have been awarded the orders of Taiwan Power’s electronic meters tender and telecommunication system tender. Recently we also continued to contact South East Asia Power for placement of system trial points at various places and the leading planning development system design. For the power of electric vehicle, we have completed the development of various vehicle-drive charging devices, and have cooperated the with international major electric vehicle development companies, which are also the important cooperative partners of domestic electronic vehicle leading enterprises. We have developed solar energy business fast, and have successively invested in the developments for about 100MW solar power plant, including the development tender of the largest detention basin solar photovoltaics, which is the foundation of AcBel’s energy aggregation service; and have established a laboratory in Singapore to develop high watt solar energy converter and smart monitory platform.

In the year of 2018, AcBel’s efforts in corporate governance and corporate social responsibility were recognized and was awarded “National quality award – sustainable development model ward” and “sustainable award of TCSA Taiwan-Based Enterprise” of Sustainable Energy Research Foundation.

Operation Environment and Development Strategies

“Providing total solution to be your leading edge green power partner” is AcBel’s commitment, aiming to create maximum value for customers, employees and shareholders. In combination of strong RD momentum, we step into the application of the areas of clean energy, solar power plant, medical equipment and electric vehicle related power products, with a view to become the innovative leading company of smart green energy in the power industry.

2019 Operating outlook

Looking ahead for this year, in response to unexpectable changes in China-USA trade war and for fast reaction to the demands of customers and changes in industrial environment, AcBel will diversify the risks of global manufacturing bases, and expand the production capacities in Taiwan and Southeast Asia. As benefited from new customers and the effect of mass production of new products, the consumptive power will still contribute to the revenues of this year. Mainstream product levels will be focused to maintain the momentum of growth. Industrial power will continue its growth as brought by the application of cloud data center, AI and big data. In the field of fuel battery energy, with the global business exploration of major customers in recent years and as benefited from the promotion of infrastructures in India, Japan and Korea, its revenue percentage will be increased continually. The fast exploration of solar energy business in this year can be expected to contribute as the source of new revenue of AcBel. In the future, we shall continue to use “three highs” (high efficiency, high watt, and high density) and “one low” (low cost) as the goals of development of energy series products. By implementation of “re-creating outstanding” plan, and through organizational adjustment, integration of group resources and promotion of production and sale research workforce, we are solidifying our global position in power business. We hope that the smart green energy business will be blooming in the year of 2019 and we can march toward the power supply integration manufacture and service business.

AcBel Polytech Inc.

  • Chairman: Hsu Sheng-Hsiung
  • President:Kao Ching-Shang
  • Chief Accountant:Yeh Jin-Mao