In 2024, the global economic environment was marked by numerous variables, especially in the second half of the year,when consumer market demand slowed, bringing challenges to industry development. However, Phison, with its strongtechnological research and development capabilities and diversified product portfolio, successfully maintained a competitive advantage amid market fluctuations, delivering strong results that outperformed industry peers. Our NAND storage solutions continue to gain market recognition in application areas such as PCs, servers, gaming, and industrial control, demonstrating Phison's steady growth momentum and further consolidating our leadership position in the global storage industry. Looking ahead to 2025, Phison will continue to progress technological innovation, launching a full range of PCIe 5.0 SSD storage solutions at the Consumer Electronics Show (CES) in the United States, providing higher performance, low-latency solutions to meet the high-speed storage needs of PC OEM, server, gaming, and AI markets, further expanding the Company's market share. Particularly in the enterprise market, Phison will continue to strengthen enterprise-level SSD solutions, introducing higher performance, high durability PCIe Gen5 and Gen4 SSDs, comprehensively optimizing storage performance for servers, cloud computing, and data centers. Furthermore, Phison will further expand its UFS product line, providing higher performance and low power solutions to meet the growing storage demands of smartphones, automotive applications, and IoT devices. In addition, Phison's on-device AI model fine-tuning solution, aiDAPTIV+, echoes the on-device inference strategy for machine equipment proposed by NVIDIA founder Jensen Huang in his CES speech. By integrating Phison's aiDAPTIV+ solution with NVIDIA's on-device AI inference equipment, this will help accelerate the application of AI technology across various industries, enabling the comprehensive implementation of AI, and driving intelligent industrial upgrades. Looking to the future, Phison will continue to uphold the core values of technological innovation, strengthen product competitiveness, and meet the ever-changing demands of the global market. We will work hand in hand with our partners to promote industrial development, creating higher value for global users through increasingly outstanding storage and AI solutions.
As climate change becomes an even more crucial issue, changes in regulations, value chains and product trends increasingly affect the development of corporate development blueprints. Climate disasters also cause enormous financial impacts on enterprises. Phison obtained ISO 50001 energy management system certification this year, actively implementing energy conservation and carbon reduction to contribute to climate mitigation, while also maximizing organizational climate resilience to adapt to the impacts 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 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 local communities, and in recent years has prioritized on deepening its social impact. The Fun to Go to Schools and Coastal Forest Restoration Long-term Program charitable projects have successfully operated for four years, while the Shennong Farming Project, implemented in partnership with the Lovely Taiwan Foundation, has entered its second year, aiming to nurture elementary school students' identification with and pride in their hometowns. In 2024, the Company donated more than NT$13 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.