The Words from Chairman and CEO
LETTER FROM THE CHAIRMAN
Since 2014, WPG has already published 6 internationally certied CSR Reports by adhering to our core value of Teamwork, Integrity, Professionalism, and Efciency. Our 2018 CSR Report has won the Silver Award of Corporate Sustainability Report Award (categorized in the service industry) and the Corporate Comprehensive Performance Award of Taiwan Corporate Sustainability Awards (TCSA) issued by the Taiwan Institute for Sustainable Energy (TAISE). However, we promote CSR not only for legal compliance or winning awards, but also focusing on issues related to stakeholders' interests, and we continue reviewing company's implementation of the three aspects of corporate sustainability - Environmental, Social, and Governance (ESG). We emphasize the concept of "write what we do, and do what we write" with humbleness and gratitude, in the hopes of communicating with stakeholders and showing our sincerity and determination in fullling sustainable management.
In terms of promoting corporate sustainability and ethical corporate governance, we dedicate our efforts to setting up an effective corporate governance structure, with main principles of protecting shareholder interests, improving board performance, respecting stakeholder interests, and enhancing information transparency. In 2019, we have also invited the Corporate Governance Association to conduct the rst external performance evaluation for the board of directors, and was ranked in the top 6-20% among listed companies in the 6th Corporate Governance Evaluation, demonstrating the Company's efforts on the development of corporate governance and corporate sustainability.
In terms of innovative supply chain management, we internally integrated WPG DADAWANT and digital transformation into daily operations through various activities, in order to instill the concept of digital transformation into our colleagues. In 2019, the CEO has participated in many external forums and media interviews. In addition to strengthening WPG's brand image of digital transformation, we also hope to share WPG's experience in promoting digital transformation with customer orientation and technology empowerment in mind. Furthermore, WPG will build a coopetition eco-system through "alliances" in order to meet the challenges faced by customers in the practice of smart manufacturing, fulll customers with intelligent manufacturing logistics services, and create a win-win outcome for the industry.
Regarding talent development and transformation, in 2019 we cooperate with management consulting company to review, discuss and develop the positioning of future talents, and identied 6 competencies as an important basis for future talent development. We still focus on providing an inclusive and diverse working environment that nurtures talent and creativity. We also providecompetitive compensation based on fair appointment of staff, performance management, talent cultivation, as well as referencing external compensation surveys and analysis. The company also conducts a variety of training courses for employees' learning and development to encourage employees to balance between their work and personal life in a safe and comfortable working environment. In addition, we have fully introduced and promoted digital tools to colleagues in 2019, with advanced deployment in response to the spread of COVID-19 in 2020, prioritizing colleagues' health over everything else and allowing colleagues to smoothly work from home remotely via online network.
As for environmental protection, WPG is mainly engaged in electronic components distribution services, with no actual manufacturing that could affect the environment. Through various activities and internal webpages, we inform employees of the risks of climate change and global warming, and advocate the conservation of all limited natural resources, water and electricity saving, waste sorting and recycling, as well as encouraging employees to contribute to environmental protection. WPG hopes to promote environmental education via the Tree Planting activity for at least 3 years, starting from 2019, motivating colleagues and their families to participate so that they can understand how important coastal windbreak forest is to the environment, with the theme of "Let's Work Together on Coastal Tree Planting."
As for public care, in order to promote kindness to the society from each family in WPG, we encourage employees to participate in social activities, create a positive cycle, and promote family members to join as well. The Company's industry-academia cooperation and creative design contests not only providing support for the development of youth education,promoting vocational training, but also demonstrating the Company's technical support capabilities to reduce information barriers between the industry and the academic community, and to enhance overall effectiveness.
Going forward, we will continue to improve sustainable management, and always be consistent in our business philosophy and services, with the vision of being the first choice and the benchmark of the distribution industry. By comprehensively promoting the core value of "Teamwork, Integrity, Professionalism and Effectiveness," we aim to maintain good relationships with our customers, employees, investors, suppliers, authorities, communities, NGOs and other stakeholders, to create win-win outcomes and share our exceptional business accomplishments with the general public. Under rising challenges of emerging risks, WPG hopes to promote sustainable development in global ecology and overall industrial chain via comprehensive design and implementation of digital transformation, and to jointly develop towards the sustainable goal of "working together, sharing interests, and achieving win-win."
LETTER FROM THE CEO
Creating a Win-Win Ecosystem from Altruism
Considering the impact of the US-China trade war and the COVID-19 outbreak this year, all industries are facing internal and external challenges in the rapidly changing world. In recent years, WPG has been actively planning for the next 10, 20 or even 30 years, aim to create additional value with new technologies and approaches. We have begun to initiate digital transformation since 2015, and have been constantly exploring the potential offline and online opportunities of various frontend and backend operating processes. In 2018, WPG ofcially launched the WPG DADAWANT digital platform, optimizing the use of technology and tools to shift from "meeting customer requirements"to "creating customer need." In 2019,
the trend of semiconductor supply chain has become more and more polarized. In response to changes in the industry's upstream and downstream companies, we continue to promote and implement the digital transformation with the principle of "customer orientation, technology empowerment, collaborative ecosystem and era co-creation." WPG actively promotes full cooperation of online platforms and ofine teams on responding to supply chain adjustment needs of manufacturers and customers.
When introducing the "WPG DADAWANT" platform to WPG's existing customers, we discover that almost every company is studying and evaluating smart manufacturing. Many customers are investing in smart manufacturing for improved efciency and quality. However, they neglected to observe the time required for material loading and production line shifting, which will impact the overall efficiency of smart manufacturing.
With that in mind, WPG believes that information flow with no logistics support cannot really resolve customers' overall supply chain problems in the future. In 2018, WPG completed the construction of smart warehousing in Hong Kong, and plans to gradually implement commercialized smart logistics services in Southern China, Taiwan and Southeast Asia, empowering traditional warehouse practices by use of data management and transparentizing warehouse information. With the goal of achieving comprehensive inbound and outbound smart logistics operation to become a leading OEM warehouse, we hope to invite upstream manufacturers and peers to join the independent warehouse sharing platform. WPG aims to actively respond to challenges faced by customers in implementing smart manufacturing, directly sending the parts needed by customers B2B2P (Business to Business to Production Workshop). We hope to support our customers with intelligent manufacturing logistics services, fulll interest sharing in the industry, and achieve a win-win situation with our partners in the ecosystem!