"Marketing and Manufacturing"

Wires and cables is a mature industry in Taiwan. Material in wires and cables, is entirely imported from other countries and is often affected by political as well as economic issues around the world. Given the thin profit margins of the traditional wire/cable manufacturing industry, the price of copper has become one of the main determinants of our profitability.

The slowly rising price of copper in 2016 and the correct futures operation are helpful for improvement of profitability. However, we are continuously enhancing our operating capability. The ratio of the products that can make high profits for each branch, including Ta Ya 161 kV and 345 kV cables, Cuprime’s copper balls, Ta Heng’s solar power cables and network cable lines, UEI’s 161 kV devices, Ta Ho’s large construction contracts, and AD’s plant construction projects, is continuously increased to make a great improvement in profitability.

The capacity of the Dongguan and Kunshan plants were integrated after the Zhang Zhou plant was closed down to increase the operating performance significantly. A substantial allowance for losses of invested business was provided on a lump sum basis in 2015. No such allowance was allocated in 2016.

Our consolidated revenue was NT$ 14.268 billion in 2016. Though it decreased by 0.922 billion (-6.07% ) in comparison with the amount of NT$ 15.190 billion in 2015, the loss was eventually turned into gain to make a net profit after tax of NT$28 million with an achievement rate of 93.01%. The anticipated considered revenue in 2017 is NT$ 14.961 billion. To achieve this goal, it is needed to watch the development of the copper price, upgrade the equipment appropriately, and promote automation of the production to lower the available cost.

The following are the focuses of the Company’s operation in 2017:

• Support domestic infrastructures by satisfying the nation’s demand of power cables and telecom cables in economic and traffic projects. Offer the best products and services to support the nation’s development, and help construct the most comprehensive power and telecommunication network.
• Introduction of new products in the magnet wire business group has yielded early success. The Company will build on top of this success by promoting these products to new customers in Japan, India and Southeast Asia.
• Develop copper materials of different features; produce wires with special characteristics to satisfy customers’ needs.
• Consolidate resources within the Ta Ya Group; promote intra-group support and collaboration to enhance operating performance.
• Strive for success in core business activities and pursue financial stability. Invest into other businesses only when there is excess capacity.
• Choose investment subjects with discretion; target investments that have the potential to deliver returns, accumulate resources, and create and dominate new business activities.
• Expand overseas business; diversify business operations for higher income.
• Train talents and raise professionalism; maintain a concise employee base and make use of information and computer technologies to create competitive advantage.
• Develop environmental protection products and commit to related charity activities as a contribution to Earth’s environment.
• Continually reduce costs and serve customers at competitive prices.