Hello, dear shareholders,

Looking back at the international situation and economic development of 2024, despite the growth in consumer demand driven by emerging fields such as artificial intelligence (AI), semiconductor demand, and green energy, which gradually revitalized economic activity, high inflation, tight monetary policies, and geopolitical conflicts deeply affected trade circulation and market confidence. Overall, geopolitical risks still posed significant challenges to the global economy, supply chain issues persisted, and global aging populations coupled with declining birth rates led to labor shortages, creating severe economic challenges. These factors interacted to make global economic recovery extremely slow. The Russia-Ukraine war disrupted energy and commodity supplies, tensions in the Middle East escalated again, and the US-China trade conflict further intensified. All these factors exacerbated uncertainties in global markets and undermined confidence in economic development.

Thanks to its long-term product diversification strategy, Kinik Company has continuously expanded its product line, successfully maintaining a stable market position. In response to the steady growth trend in the semiconductor industry, the company has actively deployed related products and strengthened material innovation and precision research and development, effectively diversifying risk and reducing the impact of external environmental fluctuations on operations. This has enabled the Company to maintain stable profitability levels despite facing various challenges. Overall, Kinik Group's consolidated revenue reached NT$7.019 billion in 2024, growing 10% compared to 2023, with net profit after tax of NT$1.062 billion and earnings per share after tax of NT$7.1, as compared to the budget shown in the table below:

Looking ahead to this year, EV, AI, and robotics will continue to play important roles in economic growth. However, geopolitical uncertainty remains a major variable, especially with President Trump's successful return to the White House. The United States may trigger significant changes in tariffs, technology, energy, diplomacy, and defense, which will likely have profound impacts on global economic development, affecting Taiwan's trade and economic development, and potentially challenging the global economy by influencing national development and supply chain cooperation models.

Despite the uncertainties in the international situation, Kinik will actively respond to various challenges and strengthen risk management while continuing to enhance the company's core capabilities to create more value for shareholders and customers. We will continuously pursue innovation and improvement, with ESG as the core driving force for the company's century-long development, using green environmental protection, digital transformation, and smart manufacturing technologies to address current challenges. Therefore, we have formulated the following key action plans:
1. Expanding International Markets: Integrating the manufacturing and marketing capabilities of our five grinding wheel factories in Taiwan, Japan, and Thailand to strengthen our overseas business expansion through new products and channels, creating more growth opportunities.
2. Strengthening Semiconductor Polishing Capabilities: In response to the strong demand for semiconductors in AI, we continue to develop diamond discs and reclaimed wafer products and capacity for advanced processes, while actively researching precision polishing solutions for new materials to enhance our competitiveness in the semiconductor polishing industry.
3. Continuing to Promote Lean Manufacturing and Smart Production: We continue to strengthen green digital smart manufacturing and services to improve production efficiency and reduce costs, establish new business models to serve customers, and are committed to fulfilling our environmental protection and social responsibilities.

Looking ahead, we will continue to strengthen innovation in our operations and actively expand our business footprint in next-generation and emerging markets. We believe these efforts will lay a solid foundation for the future. We will also actively respond to global market changes and technological developments to maintain our leadership position in a highly competitive environment.

Finally, thank you to all shareholders for your long-term support and trust. We look forward to moving forward with you on the road ahead, sharing the fruits of Kinik’s continued growth together!