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Chairman's Statement

> Investor Relations > Corporate Governance > Shareholders’ Meetings > Chairman's Statement

Dear Shareholders,


Under the continuous impact of the new crown virus epidemic and the Sino-US trade war, the global economy and industrial supply chain in 2020 will experience unprecedented challenges and changes. Intense changes in terminal demand, tight supply and shipment of raw materials, fluctuations in market price mechanisms, maintenance of customer relationships, etc., while testing the operational flexibility and decision-making response speed of the chain organization, it also brings a new wave of development opportunities for the company's competitive differences. Benefiting from the proper implementation of the government’s anti-epidemic control, all plant operations have maintained normal operations. The products have been recognized and trusted by customers and the market for a long time, and the production capacity has been continuously expanded to give full play to the benefits of mass production. Through active and effective coordination of production and sales and cost control, the overall operating performance set an exciting new record in 2020.

1、Consolidated revenue and net profit : Unit:NT$1,000
Items Year 2020 2019 Increase (Decrease)Amount Change Rate%
Net Revenue 11,048,392 8,430,970 2,617,422 31.05%
Gross Profit 3,332,806 2,007091 1,325,715 66.05%
Net Profit 1,429,287 671,782 757,505 112.76%

Consolidated statement of income and profitability:

Item Year 2020 2019
Financial Structure (%) Debt/Assets Ratio 41.84 34.94
Long-term Capital/Fixed Assets Ratio 239.33 260.78
Debt-Paying Ability (%) Current Ratio 188.24 284.10
Quick Ratio 128.45 205.84
Profitability(%) Return on Assets(%) 9.65 5.32
Return on Equity(%) 15.58 7.70
Earnings per Share(NT$) 4.61 2.17

2、Budget Execution:

The internal budget target set by the company each year does not disclose financial forecasts to the outside world. The overall revenue and profit will be affected by industry changes and product structure. The combined operating income and profit of 2020 are reached 100.76% and 99.62% of the budget target.

3、Research and development:

The company continuously developing and optimizing high-stability, high-frequency, wide-temperature, and ultra-miniaturized quartz component products, including Temperature Compensating Control Quartz Oscillator (TCXO)、Temperature Sensing Quartz Crystal (TSX)、Miniature Constant Temperature Control Quartz Crystal Oscillator (OCXO), Miniature Quartz Crystal (XO)、Miniature Mobile Device Crystal(Crystal)、Sensors…etc. to accelerate the deployment and introduction of Tier 1 customers in the three major industries of 5G / automotive / IoT.

4、Results from execution of other projects:

(1) Green enterprise: In order to comply with the government's energy-saving and carbon-reduction policies and energy regulations, the company has continuously implemented energy-saving and carbon-reduction programs every year. TXC has built a rooftop solar power generation system with a power generation capacity of approximately 65,100 degrees in 2020. It promotes the recycling and reuse of process waste heat and new installations. The heat pump system saves energy, and continues to promote certifications and activities related to green enterprises. In addition to the continuous greenhouse gas inventory (ISO14064-1), TXC also strives to promote the reduction of food waste and the reduction of plastic bags in order to further reduce the pollution of plastic bags. The use of the bag represents ours determination to support green power and energy saving and carbon reduction with actions.
(2) Occupational safety and health: TXC has continued to promote Occupational Health and Safety Assessment Series certification to uphold labor safety under the guidance of the Occupational Safety & Health Committee and Labor-Management Conference. A number of health promotion activities such as Getting to Know Metabolic Syndrome health lecture, pap smear testing, HPV virus awareness lecture, CPR and Heimlick maneuver instruction, workplace quit smoking activity, oral cancer screening activity, individual weight reduction activity, stress relief activity, blood pressure monitoring activity and flu vaccine inoculation activity were held by TXC to help employees take positive steps towards a healthy lifestyle. TXC will continue on working to create of a safe work environment to provide maximum safety to our employees.
(3) System certification: With regard to the maintenance of various operating systems, TXC has received the following certifications: Quality Management System (ISO9001), Automotive Industry Quality Management System (ISO/TS16949), Environmental Management System (ISO14001), Taiwan Occupational Safety and Health Management System (CNS15506), Information Safety Management System (ISO/IEC27001), Hazardous Substance Process Management System (IECQ QC 080000:2012), Occupational Safety and Health Management System (ISO45001). The Ministry of Finance's Customs and Excise Department issues high-quality enterprises with safety certification (AEO), the Ministry of Economic Affairs and Industry Bureau issues the Taiwan Intellectual Property Management Specification (TIPS) Verification Level A, and the Ministry of Health and Welfare issues a healthy workplace certification-health promotion mark and had ISO 14064-1:2006 Greenhouse Gas Inventory. TXC will continue to update its management systems to satisfy and surpass customer requirements
(4) Corporate governance and responsibility: According to the results of previous corporate governance evaluations, TXC continues to be the front-end shift for all listed companies. Adhere to the concept of honest management and actively strengthen corporate governance to protect the rights and interests of stakeholders, and establish a sound and efficient board of directors to strengthen the responsibility of the board of directors for supervision and management. The Volunteer Association and TXC Foundation established by TXC are also engaged in a number of community care and education support activities, which are disclosed in the corporate social responsibility report.

1、Strengthening industrial deployment and increasing market share:

(1)Consolidate and steadily expand the existing market, continuously improve quality and reduce manufacturing costs.

(2)Actively develop new markets, new industries, new applications, new products, and deploy 5G, Internet of Things and automotive markets.

(3)Invest in the development of advanced and high-end manufacturing processes, accelerate the mass production and launch of new products, and enhance the competitive advantage.

2、Optimize product mix and increase profitability:

(1)Improve product mix: Integrate production cost differences, optimize product mix, and expand sales of high-margin products.

(2)Strengthen superior resources: Through group management, effective integration of resources, cross-plant coordination and cooperation, play to the advantages of each plant in different locations, and maintain organizational flexibility and response speed.

(3)Reduce production costs: improve production yield, reduce product bad costs, strengthen production and sales coordination, improve inventory turnover, improve process improvement capabilities, and effectively use data to analyze costs and solve problems.

3、Through strategic alliances and integration of internal and external resources, accelerate the transfer of key technologies and professional capabilities, as well as the development speed of new products and new process to effectively manager risks and enters new markets.


Looking forward to the next few years, many uncertainties in the environment and regional power struggles will continue to have an impact on the global economy and industry, and business risks will remain severe. Facing the huge opportunities and challenges at hand, only by cultivating product technology, constantly innovating and breaking through, implementing digital intelligent manufacturing, quickly and flexibly responding to market opportunities, and establishing a competitive advantage that cannot be imitated, can we respond to more intense competition and changes in the future. The management team will uphold the attitude of excellence and the spirit of entrepreneurial hard work, continue to create value for shareholders and create happiness for colleagues more rigorously and professionally, and hope to become a top enterprise with outstanding performance and sustainable operation. Value-added reengineering and new heights!