To those who are concerned about Novatek sustainability:
In 2022, due to the declining of the stay-at-home economy and the impacts of the Russia-Ukraine war, inflation, and rising interest rate, demand in the end market for products such as laptops, tablets, televisions, and smartphones has become weaker. To cope with the challenge, customers have adopted the strategy of reducing display production or adjusting inventory. Product prices have fallen due to the sudden drop in demand and intensified competition. Therefore, Novatek's full-year revenue, gross margin, and net profit were negatively impacted by the overall environment, showing a decline compared to the previous year; however, the overall operating performance remained second-highest in history. The revenue in 2022 reached NT$ 109.957 billion, a decrease of 18.8% from that of the previous year (NT$ 135.366 billion). The gross margin was 46.33%, a decrease of 3.45 percentage points from that of the previous year (49.78%). The net profit after tax was NT$ 27.97 billion, a decline of 28.0% from that of the previous year (NT$ 38.866 billion), and earnings per share were NT$ 45.96.
The consumer electronics market is deeply affected by economic cycles, and Novatek responds by continuously diversifying its product line. In 2022, the shipment of display driver ICs declined; however, Novatek benefited from its successful penetration into the automotive market, with automotive display driver and integrated touch ICs performing exceptionally well. The market share of smart surveillance ICs has gradually increased, leading to steady revenue growth. By extending product applications, Novatek has expanded its ASIC business opportunities, adding momentum to its operations. At the same time, Novatek has successfully managed its brand customers and keenly anticipated their needs to increase customer loyalty, laying a solid foundation for future business growth.
Novatek adheres to the concept of sustainable management and is committed to balancing business operation and ESG development. We value communication with stakeholders and information transparency. In 2022, the Company received the Gold Award for Corporate Sustainability Reporting of the “Taiwan Corporate Sustainability Awards (TCSA)”. In response to the global trend of carbon reduction, Novatek proactively reduces its carbon footprint and has obtained ISO 14064-1 greenhouse gas inventory certification. Our office building in the Tai Yuen Hi-Tech Industrial Park in Zhubei has installed solar power generation facilities and increased green electricity procurement to promote the use of renewable energy. The Company is also collaborating with its supply chain to jointly respond to global net-zero carbon emission goals. In terms of social engagement, Novatek actively participates in "community empowerment, charitable donations, and volunteer services." We have received multiple back-to-back awards from the Ministry of Education for several years, including the first-ever "2022 Social Education Contribution Award". Novatek also encourages employees to participate in social welfare activities through more flexible and diverse approaches, and has implemented a "paid volunteer leave" policy. We aim to expand the impact of corporate volunteers and fulfill the Company's responsibilities as a social citizen.
Corporate Governance
Corporate Governance
Corporate governance is the cornerstone of enterprise’s sustainable development. Novatek attaches great importance to corporate governance. Not only does it adhere to the principle of focusing on its own business and integrity management, the Company also operates in compliance with government laws and regulations, while protecting the rights and interests of its shareholders and taking into account the interests of stakeholders. We are continuously selected for several years as a constituent stock of the "TWSE Corporate Governance 100 Index", the "FTSE4Good TIP Taiwan ESG Index", and the "TWSE RA Taiwan Employment Creation 99 Index", and ranked in the top 5% of companies for corporate governance evaluation, which is a recognition of the excellence of Novatek's corporate governance. We will continue to work hard to enable the steady and long-term development of Novatek. In 2022, we continued to deepen our efforts to protect intellectual property by introducing the ISO 27001 Information Security Management and passing the Taiwan Intellectual Property Management System (TIPS) A-level verification. We also continued to provide training and promotion on ethical business practices to instill a sense of corporate ethics among all employees. Establishing and implementing corporate governance mechanisms from top to bottom that enables Novatek to develop in a long-term and stable manner is our commitment to all our stakeholders.
Partner’s Co-Prosperity
Partner’s Co-Prosperity
Teamwork and wholeheartedly working in the interests of our customers constitute the Novatek business philosophy. Novatek and its suppliers are always looking for better and more consummate technology and methods, striving to meet customer needs and expectations. In addition, to meet with international environmental protection laws and customer requirements for environmental protection, Novatek has also established a green product management system that has been recognized by major international manufacturers. We continue to strengthen and improve our sustainable supply chain management, assisting suppliers in obtaining relevant ISO management system certifications. In 2022, Novatek released the "Novatek Supplier Code of Conduct" and required its suppliers to comply and sign. For the first time, we organized a "Sustainable Supply Chain Management Forum", working together with supply chain partners to set sustainable business goals. Furthermore, we strive to provide high-quality customer services, improving customer satisfaction year by year. Novatek regards suppliers and customers as strategic partners, and looks forward to creating a win-win ecosystem through joint cooperation and efforts.
Environmental Sustainability
Environmental Sustainability
As an important member of the global supply chain for semiconductor products, Novatek has the obligation to assume the responsibility for environmental sustainability. Through the formulation and implementation of environmental safety and health policies, as well as the continuous promotion of greenhouse gas inventory, business activities that affect the environment, safety and health must meet the requirements of laws and regulations. Novatek is committed to reducing the negative impact of business operation on the environment. For this reason, the design and manufacturing of products are in compliance with the environmental protection regulations and energy-saving trends around the world, offering products that comply with customers’ environmental protection and energy-saving requirements. As a result, the revenue of energy-saving products has been growing year by year. In 2022, the Company gradually increased the use of renewable energy and announced its goals. In addition to sponsoring the maintenance of the "Yushan National Park Trails and Facilities" for many years, the Company also sponsored the "Sea Viewing Park" of the Hsinchu Air Quality Purification Zone in 2022, gathering corporate volunteers to jointly protect the environment. In the future, Novatek’s keystone goal of sustainable development will include continuing to strive for the refinement of product design, and bringing out more energy-saving products with low burden on the environment, thereby making a contribution to the sustainable development of the environment.
Friendly Workplace
Friendly Workplace
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Talent is not only an asset of a company, but also the foundation for its sustainable development. Novatek’s achievements today rely on high-quality human resources. The importance that Novatek attaches to professional expertise is fully reflected in the workplace environment and conditions provided by the Company. Novatek has not only been awarded the "Healthy Workplace Certification Mark" by the Health Promotion Administration of the Ministry of Health and Welfare (MOHW) for six consecutive years, but also won the Bronze Award for the 2022 CHR-Corporate Health Responsibility. The Company has been consistently selected as constituent stocks for the "Taiwan High Compensation (HC) 100 Index" published by the Taiwan Stock Exchange (TWSE). Starting from 2022, the Company has also implemented childcare allowance and work from home for parenting, demonstrating its commitment to not only offering highly competitive salary and benefits packages to attract and retain talent, but also emphasizing the physical and mental health, personal growth, and work-life balance of its employees. This is all aimed at promoting sustainable development for the Company's talent. Apart from that, harmonious industrial relations are also beneficial to the Company’s long-term stable development. The diverse communication mechanisms that exist within Novatek allow our employees’ opinions to be heard, and the responsible unit to quickly respond to those opinions, thereby constructing and excellent barrier-free communication culture and an open and enlightened working atmosphere. In addition, Novatek is committed to ensuring a safe workplace, that employees are treated with respect and dignity, and that operations are environmentally friendly and ethical. To fulfill this commitment, Novatek has formulated a human rights policy and promoted gender equality and friendliness, clearly defined various human rights protection norms and guidelines, and conducted a complete investigation process to ensure that its code of conduct is consistent with the "Responsible Business Alliance (RBA) Code of Conduct". |
Social Participation
Social Participation
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Novatek adheres to the spirit of social citizenship and the belief of “taken from society, give back to society”, engages in social welfare activities and charities, and fulfills its responsibilities as a social citizen. Novatek chose the path of education and caring for the disadvantaged, because we believe that only through education can the individual and society be changed completely, creating every possibility. In addition to establishing the “Novatek Foundation”, Novatek combined the resources of the Company and the power of its employees to actively invest in the cultivation of technical as well as sports talents, promotion of sports, supporting of education for the disadvantaged in rural areas, corporate volunteer services and social care sponsorship. It is hoped that through such efforts, Novatek can provide more resources and create more hope for the disadvantaged and children in rural areas. Due to its long-term dedication to social participation, Novatek received the "2022 Social Education Contribution Award" issued by the Ministry of Education (MOE), the "Sports Promoter Award - Long-term Sponsorship Award" issued by the Sports Administration (MOE), and the "2022 Youth Volunteer Outstanding Utilization Unit" issued by the Youth Development Administration (MOE), showing positive affirmation to Novatek's long-term engagement in social participation and sustainable development. |
Enterprise management is not easy and is a long-term work.
Novatek has always been adhering to the philosophy of “Less Words, More Action” while implementing corporate social responsibility. It is hoped that through this Report, a simple summary of Novatek’s efforts and dedication in the past year can be made, symbolizing its emphasis on being a corporate citizen. In the foreseeable future, Novatek will continue to invest more efforts and resources to implement corporate social responsibility and sustainable development, allowing the existence and development of Novatek’s technologies to bring greater value to all stakeholders and society.
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