The year of 2023 marks the 50th anniversary of the establishment of CSRC. Although we face multiple challenges arising from global inflation and geopolitics, we have always adhered to our commitment to sustainable development and continued to transform our business.

We attach great importance to stakeholders’ opinions. This year, we adopted an e-sustainable information collection platform for the first time and expanded the scope of disclosure to cover all production sites around the world. We also updated the TCFD framework, identified risks and opportunities, and assessed financial impacts accordingly. Meanwhile, we reset the Group’s sustainability targets and actively take actions to reach the UN Sustainable Development Goals (SDGs).

In the face of global climate change, we continue to enhance the Group's climate adaptation and resilience and make efforts to reduce carbon emissions. For a target of reducing emissions by 21% by 2030, we have achieved a 22.7% reduction in 2023 compared with the baseline year. In terms of raw materials, we have adopted natural gas and recycled oil to reduce our dependence on fossil fuels. As for processes, we have improved energy efficiency through technology adjustments and equipment optimization.

We are committed to recycling resources and implementing the 5R policy, aiming to achieve zero wastewater discharge and zero waste to landfill. In 2023, our wastewater recycling rate reached 89% and our waste reuse rate was as high as 80.4%.

CSRC continues to innovate on the road of circular economy, work with waste tire recycling and pyrolysis companies, launch sustainable, regeneration, and recycling solutions as one of the sustainability leaders in the global carbon black industry. In 2023, our R&D funding increased by 10% and revenue of green products accounted for 38% of the total.

We put great emphasis on the impact of our operating sites on local communities. Starting from 2023, we completed the installation of desulfurization and denitrification systems for EBF production lines in all plants in Greater China, thereby effectively reducing SOx and NOx emissions and reducing negative impacts on the environment.

In order to facilitate communication with local residents and employees, we opened Linyuan Advanced to the public for the first time during our 50th anniversary celebration, in which we invited local residents, employees, and their families to participate, to enhance their understanding of the carbon black industry. In 2023, CSRC won multiple awards, including the Taiwan Sustainability Action Awards and the Asia-Pacific Sustainability Action Awards.

We have adhered to the business philosophy of integrity and responsibility. In the 2023 Corporate Governance Evaluation, CSRC still ranked in the top 6-20% of TWSE-listed companies. Independent directors account for 50% of the Board of Directors, a percentage higher than the legal requirement, and we have elected a new female director, demonstrating our emphasis on gender diversity.

Looking ahead to the future, we will continue to implement carbon reduction projects, innovate technologies, upgrade processes, expand international markets, and work with industry partners to create more sustainable value for customers and investors and create a better future for all.