The NAND storage industry has gradually changed since the middle of the third quarter of 2023, including the severe losses of NAND original manufacturers since the first quarter of 2023. Little by little, as NAND original manufacturers reduced the total global NAND supply through production cuts, the NAND market price gradually improved. Therefore, although NAND original manufacturers were not be able to turn losses into profits by the end of 2023, at least the supply and demand situation in the overall market has gradually begun to return to a healthy balance. Phison Electronics also ac - cumulated a solid foundation in all aspects including IP technology, R&D talents, patents, R&D funds, and inventory thanks to the "Guang Ji Liang (store grain everywhere)" strategy, allowing Phison to benefit more significantly and grow during this economic recovery. Although the global economy and demand do not seem to have fully recovered, Phison has accumulated independent technologies and products, coupled with Phison's recent launch of new products, including the exclusive patented "aiDAPTIV+" technology solution, enterprise-level SSD, and a full range of UFS storage solutions, vehicle storage modules, and high-speed transmission solutions "Retimer/Redriver", enabling Phison to maintain a relatively stable and profitable performance during the market downturn. As the founder and CEO of Phison, I feel very gratified and grateful, and we have, once again, proven that Phison’s strategy and layout are continuing to simmer. Looking forward to the future, Phison will continue to use IC design as the basis to assist customers around the world to create more value-added solutions. More importantly, Phison hopes to create more value for the global NAND storage industry, leading an industrial trend of moving from "price competition" to "adding value", or even towards "creating value".
Phison not only continues to improve in technology, but also attaches great importance to ESG-related issues. In addi - tion to being ranked among the 6%-20% TPEx-listed companies in the Corporate Governance Evaluation, Phison was also selected as a member of the S&P Global Sustainability Yearbook 2024. In view of the fact that climate change has become an important global issue, which will comprehensively affect the development blueprint of enterprises in terms of regulations, value chains, and product trends, furthermore, once a climate disaster occurs, it will have a huge financial impact on enterprises. As a result, Phison not only strives to save energy and reduce carbon emissions to contribute to "climate mitigation”, but also improves organizational climate "resilience" as much as possible to make "adaptation" to the impact of climate change. In addition to continuously optimizing product performance help reduce end users' carbon emissions, Phison will also fulfills its renewable energy commitment by raising its consumption of renewable energy to at least 10% of its total electricity consumption by 2025, and by purchasing an amount of renewable electricity equal to 20% of its total electricity consumption by 2030. In addition, Phison fills out the Carbon Disclosure Project (CDP) climate change questionnaire and water security questionnaire every year, striving to allow stakeholders from all walks of life to obtain more transparent information.
Good work environment, compensation, and benefits is the way to build long-term development with employees. Phison assesses feasibility based on employee suggestions collected through different platforms and then launches improvement projects while maintaining clear and effective labor-management communication channels, creating an inclusive, friendly, and healthy workplace so as to enhance employees' recognition for the Company. At the same time, as the organization scales up, so does the number of employees. In this year, to improve organizational performance, Phison continued to launch the "Manpower Efficiency (Management) Improvement Projects", hoping such training will enhance superiors' ability to foster subordinates and plan career development for subordinates, thereby improving colleagues' work skills. In terms of social welfare, Phison is committed to giving back to the local community. In recent years, we have focused more on enhancing our social influence. The charity projects "Fun to Go to Schools" and "Coastal Forest Restoration Long-term Program" have entered their third year. This year, we partnered with the Lovely Taiwan Foundation to launch the six-year "Shennong Farming Project" at Sinpu Elementary School in Tongxiao Township, Miaoli County to boost elementary school students' identification and confidence in their hometown. In 2023, the Company donated more than NT$7.73 million worth of supplies and funds, practicing the ideal of “Take from society, give back to society” and joining hands with partners of different trades to create sustainable value.