Letter to Shareholders
Dear Shareholders,
Overview
In 2023, a series of global conflicts unfolded, beginning with the ongoing Russia-Ukraine war, which escalated into the Israel-Hamas conflict and ultimately led to the Red Sea crisis. Geopolitical tensions continue to affect international markets, prompting businesses to increase costs. While inflation is gradually declining, the global community expects the United States to implement interest rate cuts to ease corporate borrowing costs. Meanwhile, the increasing frequency of extreme weather events has urged nations encourage companies to accelerate their ESG (Environmental, Social, and Governance) initiatives. The transition from a pandemic to a post-pandemic world has also reshaped consumer behavior, driving advancements in digital transformation.
In response to external challenges, Ability is actively seizing opportunities that arise from changing circumstances, and has advanced in a multi-directional approach in its operations. In terms of product research and development, the company maintains a strong focus on optical design, firmware, industrial design, hardware development, image processing, and the integration of AI and edge computing technologies. Ability's major business operations are focused on three key areas: 1) Imaging application products, including commercial 360-degree panoramic cameras; 2) Intelligent application products, such as in-vehicle cameras and surveillance systems; and 3) Optical components and image modules. To improve business promotion, Ability has increased its marketing efforts by participation in trade shows and expanding online advertising. These collaborations include working with a Japanese provider of autonomous driving solutions to build automotive lenses and completing smart city integrations for clients in Europe and North America.
Operating results
In 2023, the total consolidated revenue was NT$4,933,155 thousand, with an operating income of NT$122,298 thousand. The net profit attributable to the parent company reached NT$274,625 thousand, resulting in earnings per share of NT$0.96.
Business plan
In 2024, ongoing regional military conflicts are overshadowing the global economic recovery and worsening the energy crisis. High-interest rates driven by inflation have stifled corporate investments and resulted in more cautious consumer spending. This trend is dampening economic growth and creating significant challenges for the consumer electronics market.
Ability is a company committed to sustainable growth and aims to remain competitive in any environment by focusing on continuous innovation in research and development (R&D) and agile marketing strategies. The company utilizes advanced image processing technology, integrates acoustic technology, and incorporates artificial intelligence (AI) and edge computing to create optical and audiovisual products that fit modern lifestyles. To expand its global presence, Ability collaborates with international partners to design and manufacture customized solutions that meet a variety of needs. Additionally, the company promotes its newly developed AI-powered optical and audiovisual products across Asia, the Americas, and Europe.
In response to the global quest for carbon neutrality, Ability maintains its corporate responsibilities. Following board advice, the company established an ESG committee and task force in 2023, produced its ESG report, and set short-, medium-, and long-term ESG goals. In 2024, Ability intends to launch complete ESG education programs while also continuing its internal efforts to conserve energy and reduce carbon emissions. As part of its long-term ESG strategy, Ability is gradually improving its operational planning and execution procedures to ensure compliance with legislation and worldwide ESG governance standards, thereby presenting itself as a sustainable organization.
The management team at Ability is committed to maintaining flexibility by adjusting the organization as needed, continuing expanding the research and development (R&D) team to foster innovation, and are also providing support to sales teams to drive revenue growth. The company focuses on strengthening its supply chain, reducing costs, and building trust-based relationships with its suppliers. Ability is dedicated to delivering strong business results, gaining support from shareholders, fulfilling its corporate social responsibility, and protecting the interests of shareholders. The company actively shares its performance with stakeholders, including shareholders, customers, and employees.
Finally, we want to thank our shareholders, for trusting and supporting us. Wish you good health and the best of luck in the coming year!