In 2024, the global economy faces significant challenges due to escalating geopolitical tensions, trade policy adjustments, supply chain restructuring, persistent inflationary pressures, and frequent extreme weather events. These factors collectively impact the stability of economic growth.

Despite the volatile external environment, E Ink's management team and all employees have worked diligently together, achieving the highest annual revenue since focusing on the ePaper business in 2016. In 2024, E Ink's consolidated revenue reached NT$32.163 billion, with an operating margin of 23.7%, profit margin of 27.6%, net income of NT$8.867 billion, and EPS of NT$7.75. Both revenue and net income grew compared to 2023, setting a new second-highest record in the company's history.

We extend our special thanks to our shareholders and board of directors for their trust and support, to all employees for their hard work, and to our ecosystem partners for their strong assistance. This is an important driving force for us to continue moving forward and creating value.

Business and Operations Review

Despite the volatile external environment, E Ink remains steadfast in its commitment to the sustainable development of low-carbon ePaper. The company continues to launch innovative technologies and application products, achieving its core goal of "pursuing profits and sustainability in tandem."

• Consumer Electronics (CE) Applications: Color ePaper technology has been successfully applied to eReaders and eNotes, entering mass production with several global brand customers adopting it. These new products not only achieve a color upgrade but also introduce larger-sized models to meet consumer demands for color presentation and screen size. This has driven a wave of device upgrades, significantly boosting growth in the consumer electronics market.
  
•  IoT Applications: The transition to Electronic Shelf Label (ESL) technology has been successfully completed. Although growth momentum was impacted in the first half of the year due to product transitions and customer inventory adjustments, it gradually stabilized later. The development of Variable Color ePaper (E Ink Prism™) technology has brought diverse and innovative applications to the market. Additionally, large-sized ePaper Signage offers an ultra-low carbon dynamic signage solution that can replace traditional paper posters, attracting significant market attention as a potential application.
  

Enhancing Eye Health Awareness and Promoting Innovative Applications

A study published by the Harvard School of Public Health on the effects of blue light on the eyes indicates that ePaper devices without front light do not emit blue light, thus causing no pressure on the retina. Compared to TFT-LCD screens, ePaper is three times healthier for the eyes. To raise public awareness of eye health, E Ink launched the "Healthier Screen Time" initiative. This includes creating a website to introduce information about eye health and collaborating with ophthalmology groups to promote awareness through media platforms. Additionally, ePaper Signage has been implemented in medical institutions and eye clinics, effectively conveying eye health information to the public while leveraging the advantages of ePaper displays to enhance patients' consultation environments.

In terms of innovative applications and technology development, E Ink has received numerous accolades:

• E Ink Spectra 6 Plus color ePaper awarded the 2024 Smart Display Industrial Alliance (SDIA) Award- Silver Award.
  
• E Ink Spectra™ 6 color ePaper received the Display of the Year Award at SID Display Week 2024.
  
• E Ink Spectra™ 6 Plus color ePaper display awarded the 2024 Gold Panel Award- Best Product Award.
  
• The medical care eNote awarded Smart Display Application Awards (SDAA)- Smart Healthcare Award.
  

Commitment to Sustainable Development and Creating Long-Term Value

E Ink is committed to the core goal of "profit and sustainability being equally important," demonstrating its long-term commitment to shareholders and stakeholders. The company focuses on the research and promotion of ePaper products that are "born for environmental sustainability," while comprehensively considering short-, medium-, and long-term sustainability risks and opportunities in both internal and external environments, conducting thorough planning and governance. E Ink is also dedicated to the well-being of employees and their families, achieving mutual prosperity with value chain partners, and actively giving back to society to fulfill its corporate social responsibility, aiming to play its role as a global citizen in creating a sustainable future.

In the latest Dow Jones Sustainability Index (DJSI), E Ink has been included as a constituent of both the Dow Jones Sustainability World Index (DJSI-World) and the Dow Jones Sustainability Emerging Markets Index (DJSI-Emerging Markets) for the third consecutive year. According to the S&P Global Corporate Sustainability Assessment (CSA) results, E Ink achieved an outstanding score of 92 points, ranking the highest in the global electronic equipment, instruments and components industry index for two consecutive years. This score is a 3-point improvement from 2023, setting a new historical high for the industry. As a result, E Ink is recognized as top 1% of global companies in the 2024 The Sustainability Yearbook.

E Ink is committed to providing energy-efficient and low-carbon ePaper products, with FTSE Russell's green revenue model indicating that 99% of our product sales are classified as green revenue. The credit rating agency, Moody's, has rated E Ink's Sustainability Quality Score as Very Good (SQS2) for its significant contributions to sustainability. Additionally, it confirmed that E Ink's energy-efficient and low-carbon ePaper products comply with the EU Taxonomy, making a substantial contribution to climate change mitigation.

Furthermore, E Ink has achieved leadership level in both Climate Change and Water Security reports by the global environmental disclosure organization CDP. Notably, Climate Change earned the top rating of A List, recognizing E Ink's concrete actions and active engagement in critical environmental issues such as climate governance, carbon management, and water resource management.

To actively respond to global climate change, E Ink set ambitious goals at the end of 2021: to achieve 100% renewable energy (RE100) by 2030 and reach net-zero carbon emissions by 2040. By the end of 2024, E Ink has already achieved RE58, meaning that 58% of its electricity consumption comes from renewable energy, significantly ahead of its original plan to reach RE30 by 2024.

Outside of Taiwan, all of E Ink's global locations have achieved RE100, utilizing 100% renewable energy. In Hsinchu and Linkou, the adoption rate of renewable energy continues to rise, currently exceeding RE20. With the accelerated adoption of renewable energy, E Ink has raised its target for renewable energy adoption by the end of 2025 to RE65, aiming to achieve RE100 across all global locations as soon as possible.

Due to E Ink's proactive use of renewable energy and implementation of related carbon reduction measures, carbon emissions in 2024 were reduced by 52% compared to scenarios without carbon reduction measures and decreased by 40% compared to the baseline year of 2021.

In waste reduction efforts, E Ink's Yangzhou and the Linkou plants passed UL2799 Zero Waste to Landfill certification at the gold and platinum level in November 2024 and January 2025, respectively. The Hsinchu plant in Taiwan is also expected to obtain platinum level certification in the first quarter of 2025.

E Ink is committed to manufacturing transformation by replacing outdated, energy-consuming equipment and optimizing process parameters while enhancing energy management through the implementation of ISO 50001 Energy Management System. By 2024, energy productivity nearly doubled compared to the baseline year of 2018, maintaining its EP100 commitment.

In terms of green procurement, E Ink passed the ISO 20400 Sustainable Procurement Guidance performance assessment in 2024 and received "Advanced" level certification, showcasing excellence in promoting sustainable procurement and supply chain responsibility.

At the same time, E Ink has also obtained ISO 37001 Anti-Bribery Management System certification, becoming the first company in the display industry to receive this certification. This demonstrates the company's strong commitment to integrity in business operations and sustainable development. Through implementing ISO 37001 Anti-Bribery Management System, E Ink can strengthen internal and external risk management capabilities and auditing mechanisms while enhancing operational efficiency and effectively reducing legal and reputational risks.

In addition, E Ink is dedicated to technological innovation and sustainable practices, receiving numerous accolades:

• Awarded the 6th Presidential Innovation Award, the highest national honor for innovation.
  
• Ranked on the "Best Taiwan Global Brands" list with a brand value of US$105 million.
  
• Honored with the CommonWealth Excellence in Corporate Social Responsibility Award, ranking 5th in the manufacturing sector.
  
•  Recognized again with the Global Views Monthly ESG Award.
  
•  Honored with the Taiwan Corporate Sustainability Award (TCSA ) for Comprehensive Performance, ranking among Taiwan's Top 10 Sustainable Exemplary Enterprises.
  
•  Achieved five major awards at the Taiwan Corporate Sustainability Awards (TCSA) and made its first appearance in the Global Corporate Sustainability Awards (GCSA).
  
•  Received four Gold Awards at the Taiwan Sustainable Action Awards (TSAA) and Asia-Pacific Sustainable Action Awards (APSAA).
  
•  Achieved five Gold Awards at the Asian Sustainability Reporting Awards (ASRA).
  
•  First awarded AAA rating in the SEED Taiwan Sustainability Evaluation.
  

In its investment in natural and biological diversity, E Ink has been listed among the first wave of TNFD pioneers in 2024 (or earlier). E Ink is actively committed to disclosing corporate natural risks and strategies and has joined several nature-related initiatives. The first Nature and Climate Report was published in 2024, supporting ecological restoration and promoting environmentally friendly practices.

2025 Business Focus

2025 marks a milestone for E Ink’s officially development of large-size ePaper, heralded as the "First Year of Large-Size ePaper." Since its establishment in 1992, E Ink has consistently focused on the research and manufacturing of small-size displays. Now, entering the large-size ePaper domain presents new challenges, including quality standards for new large-size displays, large-scale production criteria, and a complete transformation of market strategy.

Successfully advancing the development of large-size ePaper will significantly enhance E Ink's revenue and profitability, propelling the company toward its goal of becoming a world-class display enterprise. We firmly believe that overcoming these challenges will yield fruitful results, elevating E Ink's operational performance to new heights.

In the medium-size ePaper sector, E Ink will continue to deepen the technological development of eReaders and eNotes, including enhancements in color performance and display speed to meet customer demands. Simultaneously, E Ink will continuously optimize cost competitiveness, aiming for medium-size ePaper to compete with LCDs on cost in the future.

In the electronic shelf labels (ESL) segment, E Ink not only launches higher-quality products but also continually optimizes costs to help retailers reduce the total cost ownership (TCO) for electronic shelf labels (ESL). Through these efforts, we expect to further promote the widespread adoption of electronic shelf labels (ESL) in the global market.

Technology Development

E Ink continues to focus on developing ePaper display technology, vertical integration, and ecosystem partner technologies. In addition to enhancing color display effects, faster page-turning and display speeds, larger sizes, and outdoor applications on ePaper, we are also concentrating on low-energy consumption designs and carbon footprints reduction. Furthermore, we are developing relevant materials for vertically integrated applications of ePaper products and collaborating with ecosystem partners to explore and develop next-generation advanced technologies, accumulating momentum for long-term development.

Operations Management

To accommodate future operational growth, E Ink is continuously expanding capacity and optimizing processes. The new office and factory building in Hsinchu has officially commenced operations, with new production lines focused on capacity for large-size products and related materials. We are committed to enhancing production efficiency for ePaper while ensuring stable quality supply and improving cost competitiveness. Additionally, to deepen and strengthen operational capabilities, the company is continuously refining its foundational management systems towards production automation and intelligence while integrating global resource allocation to drive continuous improvement in operational efficiency and effectiveness.

Outlook

E Ink's ePaper products "born for environmental sustainability" have become a key technology in constructing display interfaces of net-zero city. Regardless of social, economic, or political changes, E Ink is committed to challenging itself to overcome existing and potential difficulties while continuously promoting ePaper technology. We aim to embrace market opportunities, achieve steady growth, and actively give back to society.

Currently, most of the world's largest and highest-valued display companies primarily focus on large-size products with small-size ones as a supplement. E Ink is also striving in this direction by continually expanding its ePaper ecosystem and accelerating applications in reading, education, retail, signage, transportation, logistics, and other fields to create a new sustainable future. We Make Surfaces Smart and Green.