On the occasion of our establishment half a century ago, Hon Hai is continuously moving towards our sustainable goals for the next 50 years. The road to a sustainable operation is long and arduous. Looking at the main enterprise data in the S&P 500 index, the "average lifespan" of a company has been shortened to between 15 and 20 years, indicating how difficult it is for a company to achieve a sustainable operation. Looking back at 2023, Hon Hai has continuously achieved multiple milestones on its sustainability path, and the results are visible. I hope that through this report, stakeholders who care about Hon Hai can have a systematic and clear understanding of the achievements of the management team and colleagues. 

Hon Hai operates in 24 countries and regions, with 205 locations worldwide and approximately 900,000 employees during seasonal peaks. Through building good partnerships and a thriving ecosystem with the global industrial chain, Hon Hai promotes the healthy growth of the local economy and the development of technological innovation. This innovative Build-Operate-Localize, or BOL, business model echoes our main core values. 

In 2023, Hon Hai officially established six core values, among which "integrity, diligence and agility" are the inherent traits of Hon Hai employees, while "share, collaborate and thrive" are our practical concepts for working with stakeholders externally. Through the formulation of internal and external core values, combined with the efforts of all employees and stakeholders actively engaging in sustainable actions and reaping the benefits, we can help the enterprise operate steadily and move towards a century-old foundation. 

Over the past year, Hon Hai has been committed to the introduction and innovation of smart technology, continuously cultivating three forward-looking technologies and three emerging industries. Based on this, it has extended and launched three smart platforms: "Smart Manufacturing", "Smart Electric Vehicles", and "Smart Cities". These platforms not only improve production efficiency and product quality, but also find a balance between technological innovation and sustainable development. Through the application of artificial intelligence, we continuously optimize the manufacturing process, save energy and resources, promote environmental friendliness, and push the technology manufacturing service industry towards a greener, cleaner, and smarter direction. 

Accumulate small streams to form rivers and seas. Explore creativity and unleash wisdom. We held the inaugural "Hon Hai (Foxconn) Sustainability Awards" to recognize teams and individuals who have made outstanding contributions in various dimensions of sustainable development, and encourage more employees to respond to the group's ESG philosophy. Sustainable action partners and colleagues from various campuses around the world, together online and offline, witness creative wisdom, gather ESG willingness, explore innovative development ideas and better solutions in environmental, social and governance aspects, and engrave sustainable DNA into the Hon Hai culture. 

Recently, we completed the first third-party ESG audit, inspecting eight factories in China and India, covering more than 200,000 employees. The independent audit results confirmed that there were no major hidden dangers, such as employee rights and interests (including no forced labor), environment, corporate ethics, supply chain management, and started to gradually improve the risks of each factory. This survey not only enhances Hon Hai's confidence in ESG promotion, but also ensures that its global operations continue to meet the highest standards through external inspections, while also increasing the company's transparency and sense of responsibility. 

Hon Hai shoulders the mission of leading the industry towards a low-carbon economy and society. Currently, it has received the SBTi net zero target verification and released a net zero carbon emission roadmap, implementing carbon reduction efforts, determination, and ambition through specific action plans. We also promoted green power investment by establishing a green energy investment platform in 2023, developed green energy funds, and issued Sustainability Linked Bonds (SLBs). Based on last year's results, our green power usage has reached over 60%, and we will continue to leverage our economic influence to drive other companies to invest in energy conservation and carbon reduction, accelerating our transition towards net zero. 

Meanwhile, in recent years, Hon Hai has also continued to pay attention to the issue of biodiversity on Earth, responding to initiatives such as the United Nations Convention on Biological Diversity (CBD), and taking "green, ecological, natural, zero emission, and recyclable" as the policy of environmental management. It is committed to reducing adverse impacts on communities, the environment, and natural resources. In 2023, we promoted the "Sustainable Ocean - Recycling Resources" industry academia cooperation program, and worked with more partners to invest in the sustainable use of circular resources and the maintenance of biodiversity. 

Employees are important business partners of Hon Hai, and we value workplace happiness and professional development. Recently, we conducted a large-scale sustainable dedication survey with a third-party organization for the first time, establishing more diverse communication channels for employees and promoting the optimization and transformation of corporate culture and organizational behavior. According to the survey, Hon Hai has a high degree of recognition in the aspect of "organizational efficiency", which means that colleagues can achieve a balance between work and personal life. In the future, we will continue to create a sustainable corporate environment that grows together with our employees. 

In addition, as a leading enterprise in technology manufacturing services, Hon Hai aims to cultivate more next-generation technology talents and provide young students with a deeper understanding of the actual operation of technology companies. In 2023, the "Chairman’s Office Internship Program" was launched for the first time, attracting 500 outstanding students to apply and officially admitting 8 young women and men. The internship program has received a lot of positive feedback from the outside world. In the future, we will continue to handle it annually to reserve more promising young talents for the leadership of enterprises and industrial development. 

As the world's largest technology manufacturing service provider, Hon Hai understands the obligation to assist in sustainable supply chain practices and lead suppliers towards a green transformation. In 2024, Hon Hai released its first "Supplier Responsibility Report", which is also the first responsibility report from the perspective of suppliers among Taiwanese companies. It is hoped that Hon Hai's cross-industry operation influence will make the value chain pay attention to the importance of sustainable operation. In the future, it will be published regularly in the third quarter of each year and will become the annual ESG driving achievement report for group's over 10,000 suppliers. 

The dual-E equation of "sustainable operation=EPS+ESG" for Hon Hai's operations can gain the favor and trust of the capital market, based on the efforts of many partners, including employee contributions, customer trust, supply chain partner cooperation, shareholder support, and supervision from local governments of various operations. Hon Hai has bases all over the world and has a responsibility to care for neighboring communities and maintain close cooperative relationships, driving sustained economic growth. We hope to bring innovative cooperation models through the core values of "share, collaborate and thrive", with a focus on social sustainability responsibility. While pursuing economic growth, we aim to create a friendly environment, optimize the ecology, and collaborate with industry chain partners to take more firm and powerful steps towards sustainable development.

We also hope that you, who have read this report, will continue to believe in Hon Hai. We will continue to write a new chapter in our belief to “innovate for the good.”