Far Eastern New Century Corporation (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”) held its 2023 Annual General Shareholders’ Meeting at the Taipei Hero House auditorium at 9:00 AM on 28 June with Chairman Douglas Tong Hsu presiding. During the meeting, the management team reported the 2022 financial results of the Company’s three major business segments – production, property development and investments, and also directions for its future development.
FENC achieved impressive growth in 2022, with consolidated revenue reaching a record high of NT$263.9 billion (US$8.8 billion), marking an 11% increase. The net income attributable to the Company’s shareholders stood at NT$8.16 billion (US$273.4 million), resulting in an earnings per share (EPS) of NT$1.63 (US¢5.46). Moreover, the shareholders approved a cash dividend of NT$1.35 per share (US¢4.52), reflecting a payout ratio of 4.0% based on June 27th’s closing stock price. Despite the global economy showing signs of slowdown, FENC’s consolidated revenue for the first quarter of this year reached NT$61.5 billion (US$2.0 billion), while the net income attributable to the Company’s shareholders amounted to NT$1.46 billion (US$48.0 million).
Innovative Technology Buttressing Circular Economy Growth
FENC has been dedicated to advancing the field of circular economy for over 30 years, successfully developing technologies to recycle waste on land, at sea, and in the air. As the first enterprise in Taiwan certified to produce recycled PET resin for food-grade containers and packaging materials, FENC has supplied its products to the global brand that introduced the first rPET drinking water bottle to shelves in Taiwan. Additionally, FENC holds the distinction of being the world’s first company to transform ocean waste PET bottles into anti-bursting jerseys, which were used by nine national teams, including the winners, Argentina, in the 2022 FIFA World Cup. Notably, FENC has also achieved a remarkable feat by converting exhaust gas emitted by steel plants into polyester, resulting in the creation of the world’s first garment made from waste gas. These innovative recycling technologies have garnered significant recognition, including the Sustainability & Innovation Award from ITMF, the world’s largest federation of textile manufacturers. FENC is the only Taiwanese company to receive this prestigious award. Furthermore, FENC’s dedication to product innovation has been acknowledged with the International Innovation Awards and the Red Dot Design Award in 2023. These accolades collectively underscore the strength and sustainability of our products.
Transforming Green Product Portfolio to Empower Customers
The Company is the leader of food-grade and filament-level recycled polyester, and offers customers comprehensive green product solutions by transforming waste polyester products into high-quality recycled polyester. This versatile material finds applications in various industries, including food packaging, non-food packaging, functional clothing, footwear, household products, and automotive materials. Our clientele comprises world-class brands across different sectors. To meet the growing demand for eco-friendly products, FENC is actively expanding its capacity for recycled polyester. Our production facilities are located in Taiwan, China, Japan, the United States, and Southeast Asia. The expansion of our new plant in Kansai, Japan, which has been undertaken with the support of green financing, is on track to be completed in 2023. Moreover, our plans to enhance production capabilities in the Philippines, Vietnam, China, and Malaysia have been successfully implemented, with each project progressing one after another.
Implementing Energy Conservation and Carbon Reduction for Net Zero Emission
Aligned with the global carbon reduction trend, FENC is dedicated to implementing a transition towards achieving net zero emissions. The Company actively promotes various energy-conserving and carbon-reduction initiatives, including the establishment of the world’s first net zero emission recycled polyester plant in Japan. FENC also continuously increases the utilization of renewable energy as a replacement for traditional sources of electricity. Notably, the Company’s consumption of renewable energy exceeded 100 million kWh in 2022, and this figure is expected to reach 300 million kWh by 2025. Furthermore, FENC joined the Science Based Reduction Target Initiative (SBTi) in March 2023, committing to the industry’s most ambitious goal of achieving the short-term target and the ultimate target of net zero emissions on a 1.5°C pathway. Demonstrating progress, FENC successfully reduced its greenhouse gas emissions by 14% in 2022 compared to the baseline year of 2020. Additionally, the Company has already achieved 70% of the carbon reduction target set for 2025, demonstrating its commitment to the journey towards achieving net zero emissions by 2050.
Leveraging AI for Up-Cycle Applications
The Company has implemented a wide range of AI-powered applications, such as integrating robotic and automated manufacturing processes, establishing advanced perceptual intelligence systems, and utilizing cloud-based big data platforms. These initiatives aim to enhance production and management efficiency. We have successfully developed several projects, including drone patrols and inspections, predictive models for product quality, intelligent power management systems, management dashboards, virtual reality education and training, as well as a customer contribution e-management system. Furthermore, the Company has made significant investments in building a data visualization and big data analysis platform. By leveraging AI technology, we are bolstering our competitiveness in the market.
Property Development: Optimizing Land Resources to Drive Local Prosperity
The Company possesses substantial land assets, encompassing a total area of 570,000 pings (1,884,306 m2) in Taiwan, primarily situated in prime locations in the northern area. Our current development focus centers around Taipei Far Eastern Telecom Park (Tpark), situated in Banqiao District, New Taipei City. Tpark stands as Taiwan’s pioneering industrial park dedicated to the ICT industry and comprises four R&D buildings: TPKA, TPKC, TPKD, and TPKE. These state-of-the-art facilities have attracted globally renowned companies such as Google, Ericsson, and Far EasTone Telecommunications (Far EasTone). TPKE, completed in Q4 2022, has already been fully leased by a prominent international company. Additionally, our newly constructed residential building, Eco Park, offers a floor area exceeding 7,000 pings (23,140 m2), promising significant revenue for the Company. Furthermore, we have planned several other land development projects, including the transformation of approximately 30,000 pings (99,174 m2) of land in the former Neili Textile Mill, which is expected to contribute to the overall prosperity of the surrounding area.
FENC’s investments comprise over 40% of its total assets, with a primary focus on high-performing listed companies within the Far Eastern Group. This portfolio includes industry leaders in the new economy, such as Far EasTone and Far Eastern Department Stores, which collectively represent over two-thirds of FENC’s investment assets and have delivered impressive returns on investment. Based on the current stock prices of these listed companies, their combined market value exceeds NT$160 billion, marking a twofold increase from the book value. The potential profits surpass NT$80 billion, equivalent to an increase of about NT$16 per share, highlighting significant room for further value appreciation.
FENC has achieved remarkable recognition in the field of circular economy, securing the top position among 400 global plastic companies in the circularity rankings announced by Australia’s Minderoo Foundation in 2023. Our company has been consistently honored with multiple Taiwan Corporate Sustainability Awards (TCSA), including the prestigious Top 10 Taiwanese Companies Sustainability Model Award for three consecutive years, as well as the Corporate Sustainability Report Award‒Platinum Award. FENC has also maintained its position in the top 5% of listed companies in the Corporate Governance Evaluation conducted by the Taiwan Stock Exchange for five consecutive years. Furthermore, we have received the First Prize for ESG Performance category and the First Prize for Excellent Program in the low carbon operation category at the CSR & ESG Awards presented by Global Views Magazine. This achievement makes us the only corporation in Taiwan to win two first prizes. In recognition of our industry-leading sustainable finance and ESG performance, FENC has received accolades such as The Asset Triple A Awards, Asia’s Best Managed Company from FinanceAsia, and the Most Honored Company award by Institutional Investor Magazine.
FENC is dedicated to closely integrating sustainable development goals with our operational growth strategies. We are committed to developing sustainable products, assuming the role of an industry leader, and collaborating with value chain partners to foster a sustainable ecosystem.
2023 FENC shareholders' meeting (Chinese): https://youtu.be/V8jtHyz_0Go
