Corporate Responsibility Practice

Since its establishment, Sino-American Silicon Products Inc. (SAS) has adhered to the business philosophy of “integrity, professionalism, innovation, and outstanding services” in order to achieve the triple-win vision of “growth with customers, pursue excellence with employees, and create value for shareholders.” SAS has also focused on its social responsibilities while achieving sustainable company operations in hopes to create sustainable value for economic growth, environmental protection, and social progress.

Rising Revenues and Sustainable Governance

The general business environment for the solar energy industry in 2020 was filled with challenges including the external threats from COVID-19 and internal impacts by the Council of Agriculture’s policies, and the size and product efficiency of monocrystalline applications have changed even more rapidly. In response to market conditions, the Company has

reduced inventory via production capacity adjustment, adjusted the product combinations, actively maintained the domestic market, and strengthened its reinvestment operation deployments. Under the concerted efforts of all colleagues and the strong performance of the GlobalWafers Group subsidiary, SAS has bucked the trend to achieve record operating results in operating gross profit, operating income, net profit after tax, and EPS despite the impacts of COVID-19.

  1. The combined operating gross profit was NT$21.11 billion, which increased by 9.58% over the previous year.
  2. The net profit for the current period attributable to the parent company was NT$6.33 billion, which increased by 181.37% over the previous year.
  3. The after-tax earnings per share reached a record high of NT$10.82.
  4. Won the”Listed/OTC Company Corporate Governance Appraisal – Top 5% OTC Group”honor for 7 consecutive years.

Despite its leading PERC monocrystalline cell efficiency advantages, SAS has continued to cultivate advanced technologies, simplify product categories, and develop low-cost and high-efficiency cells to maintain market competitiveness. 

Global climate change issues have received increasing more attention in recent years, and green power has become the future energy trend. Taiwan’s solar power plant installations are expected to grow continuously this year due to the 

vigorous green energy policy promotion by the Taiwanese government. SAS will actively develop solar power plants 

while building smart grids to accelerate corporate operation profitability. Regarding corporate governance, we constantly refine our performance to strengthen our commitment to the pursuit of sustainable operations

Forward-looking and Industry-leading Technologies

The R&D team of SAS has spared no effort in the R&D of high-efficiency and high-value-added products. In 2018, the polysilicon wafer process was converted from Slurry to DW, which has effectively improved production efficiency and reduced environmental pollution. The average efficiency of N-type monocrystalline cells in mid-2019 has reached 22.7% with the highest efficiency could reach 23.0%, and the latest N-type cell has been launched during a shareholders’ meeting. The average mass production efficiency of P-type monocrystalline cells has reached 22.3% in 2019. In terms of new product development, new products such as the new monocrystalline Busbar-less and Metal-Wrap-Through PERC were successfully introduced into mass production.

 

In addition, various solar cells that meet customer needs have been developed based on the monocrystalline high-efficiency solar cell manufacturing process. These products include back-side contact crystalline solar cell (MWT cell), Multiple BusBar cell, half cut cell, and Multiple cut cell. The diversified design capabilities and design flexibility of SAS have enabled its products to meet the needs of various customers, allowing them to use the SAS solar cells to obtain a higher green energy conversion efficiency rate, which can be applied to different solar module installation fields.

 

The long-term R&D technology experience of SAS has enabled the Company to expand into the silicon material application products field by leveraging its deep technical foundation during the period in which the global solar market is sluggish. SAS will continue to accumulate R&D capabilities with a focus on the development of advanced technologies and high-performance diversified products. The company’s overall competitiveness is enhanced through value-added innovation and optimized product combinations.

Create a Green Energy Environment to Achieve Net Zero Carbon Emissions

Countries worldwide are actively working on emission reduction targets to prevent the intensification of climate change, and nations have proposed the “2050 Net Zero Emission” target in order to fulfill the “Paris Agreement” to control global warming within 1.5 °C. The net zero emission target has now become a clear indicator for the international climate negotiation agenda. As of the end of October 2020, 125 countries have proposed to meet the net zero emission target by 2050. Microsoft and 30 other global companies have signed The Climate Pledge jointly initiated by Amazon and Global Optimism. Companies that sign this commitment will regularly measure and report greenhouse gas emissions, introduce the decarbonization strategies of the Paris Agreement via actual business reforms and innovations, and adopt various practical and permanent methods to neutralize carbon emissions. The goal is to achieve Net Zero Carbon by 2040, which is 10 years earlier than the 2050 target set by the Paris Agreement. In contrast to international countries or even private companies that have actively advocated carbon reduction goals, Taiwan should also contribute to climate change mitigation as it is the global leader in electronics manufacturing and one of the top 5 coal imports worldwide. As a member of the green energy industry located in Taiwan and despite its insignificant individual strength, SAS has continued to support the climate initiatives/carbon neutrality under the harsh challenges brought by COVID-19. In addition to following the nationally determined contributions (NDCs) of the Taiwanese government, SAS has also developed its own climate roadmap in hopes to create a green energy environment, gravitate towards net-zero emissions via sustainable strategy development and organizational transformation, and achieve net-zero emissions as soon as possible.

 

In terms of actual implementation improvement, the 2020 Energy Conservation Improvement Action Results showed that SAS has achieved an annual energy conservation of approximately 2.2 million kWh. In terms of strategic layout, SAS has deployed its FZtech Branch and Yilan Branch (which established the Power Station Development Department in 2020) to fully enter Taiwan’s renewable energy market and actively planned and invested in the constructions of roof-, ground-, and water-surface-type solar power plants. The Company has also introduced a water surface buoyancy solar power generation system to lower the water surface temperature and significantly increased the solar panel as well as power generation efficiency. Since the start of the efforts (in 2014) until the end of 2020, total domestic grid-connected solar power generation system operations have reached approximately 74 MW with the total annual power generation capacity of 84,858,716kWh, which could reduce approximately 43,193 metric tons Note of carbon dioxide emissions. The total installed capacity for grid-connected operations at home and abroad was approximately 124MW with the total annual power generation capacity of 151,209,405 kWh, which can reduce approximately 76,966 metric tons Notes of carbon dioxide emissions. The goal under the government’s renewable energy promotion plan is to complete 20 GW of solar energy installations by 2025. In addition to providing energy management-related services, SAS has invested and owned solar power plants since 2019, and the total investment amount has reached NT$3 billion. SAS has transitioned from an energy management services provider into a member of green energy provider. As of the end of 2020, the total investment and power plants held would reach approximately 3 MW with the total power generation capacity of 796,008 kWh in 2020, which could reduce approximately 405 metric tons Note of carbon dioxide emissions. Moreover, SAS Zhunan Branch has

cooperated with the FZtech Branch in 2019 to construct a hybrid energy system on the roof of the Zhunan Branch plant; integrate 99 KW overlay solar photovoltaic power generation system, 100 KW/350 kWh energy storage system, and adjustable grid-connected 600 KW generator; and retrofit the micro-grid system in the plant. Constructions for the various subsystems have been completed in Q2 of 2020. Total power generation for the entire year of 2020 has reached 131,432 kWh, which can reduce a total of approximately 67 metric tons Note of carbon dioxide emissions. The power generation system has also combined the development and integration of energy storage devices into the energy management system platform in order to meet the future market demand for power storage management. The future outlook for the SAS Group includes continuing to respond to the global trend of low-carbon green energy, build more high-quality solar system power plants in Taiwan, strengthen energy security and innovate green economy, and endeavor to protect the sustainable environment of Taiwan and worldwide.

 

Note:

Carbon dioxide emissions: Because solar power is used to replace public electricity sales, carbon dioxide emission reduction is estimated based on the Electricity Carbon Emission Coefficient (Electricity Carbon Emission Coefficient for Public Electricity Sales Sector) of 0.509 kgCO2e/KWH as announced by the Bureau of Energy, MOEA, in 2019.

Employee Care and Public Cause

SAS believes that employees are the Company’s most important asset, and ensuring the physical and mental health of employees can help to improve Company productivity. Therefore, the Company is committed to create a safe, healthy, and 

friendly workplace; uphold the pledge to respect and provide people-oriented care for employees; abide by the government’s labor laws; create a comprehensive salary and welfare system; guarantee a friendly working environment; and ensure 

the safety of employees at work.  Emphasize employee career development by planning diversified training courses to improve employee knowledge and skills, and pay attention to the balance of work & life for employees.  With all efforts, we hope to build a blissful healthy workplace and continue to pursue excellence together with our employees, in face of fiercely challenging global competition.

 

In terms of social welfare, SAS adheres to the concept of taking from society and giving back to society. The Company has actively participated in various public welfare activities and guided its employees to provide care for disadvantaged groups. The SAS Group has long been committed to caring about the remote-tribe-related issues in Taiwan. Each year, SAS has 

held rural fundraising and care events in hopes to send care and support to more regions and help more children in rural areas.  Even the COVID-19 crisis did not affect the Group’s determination and mission to assist children in remote villages. 

We have expressed our love in practical ways, practiced corporate responsibility by taking care of the society, fulfilled the various specific actions and results in terms of corporate social responsibility, and demonstrated our determination to achieve the sustainable operation target.

 

The business philosophy of SAS to focus and cultivate the Taiwanese market remains the same. 2021 will continue to be an uncertain and challenging year, and COVID-19 will add more uncertain factors to the market environment. Undauntedly, SAS will continue to focus on innovative R&D, reduce costs, and develop in the direction of strength accumulation. We are deeply confident in terms of our solar energy and semiconductor global deployment resource integration. We will look forward to steadily improve operating efficiency, rebuild Economic Performance, and achieve a sustainable green enterprise with stable growth in revenue and profit.

 

Good corporate governance and focus on social responsibility are the core impetus for the Company’s existence. SAS will 

go all out to realize its pledge of a friendly workplace, environmental protection, and social care. Our goal is to become a sustainable green enterprise while achieving stable growth in revenue and profit.