Letter from the Chairman/CEO
Letter from the Chairman
To the partners who attend to the sustainable development of WPG Holdings,
Since 2021, the world has continued to face the impact of the Covid-19 pandemic and the Ukraine-Russian war. While the supply chain problems in the electronics industry have been relieved, the heating up of the pandemic has cast a shadow over corporate operations. In spite of facing many challenges, with the efforts of all colleagues, WPG Holding's revenue, net profit, and EPS in 2021 all hit record highs.
With the increasing stress on ESG in domestic and abroad, it has also prompted companies and governments to reflect on the importance of social and environmental issues, and it has also demonstrated the long-term accurate strategic positioning and investment of WPG Holdings. Internationally, we are upgraded to BBB in MSCI ESG rating in 2022, ranking the best in the global semiconductor component distributors; domestically, the Company is rated among the top 6-20% in the 8th Corporate Governance Evaluation.
WPG Holdings is focusing on the following five core aspects: "Corporate Governance, Sustainable Supply Chain, Environmental Sustainability, Human Capital, and Social Participation", and continues to make steady progress. While delivering good operational performance, we also collaborate with stakeholders to enhance our ESG competitiveness.
In terms of corporate governance, we continue to dedicate our efforts to setting up an effective corporate governance structure. In 2021, we added a female independent director, expected to improve the multiple perspectives of the Board of Directors’ decision-making and enhance the functions of the Board of Directors; and the Chief Sustainability Officer was established in January 2021 to deepen sustainable development. On top of that, in February 2022, the permanent ESG Office was officially established, which actively promotes a variety of sustainability projects and tracks the implementation of resolutions, determining the priority of ESG in organizational affairs. Corresponding to recent trends, we continue to incorporate different sustainability issues in our corporate development strategies.
For sustainable supply chain and services, intending to increase the efficiency of the logistics of the global electronic supply chain, we have proposed a new business model of "Logistics as a Service (LaaS)", which uses automated intelligent equipment to twist the traditional warehousing practices. The required parts of customers are directly sent to their production workshop at all speeds (B2B2P; Business to Business to Production Workshop), while improving the efficiency of the supply chain, we also expect to reduce overall carbon. The development of new business can also generate profits for stakeholders to achieve a win-win situation for the industry.
For environmental sustainability, WPG Holdings is very concerned about the environmental issues, so we aggressively save energy and reduce carbon emissions, and enhance the use of green energy; in response to the climate change crisis, the Annual Shareholders' Meeting in 2021, announced climate action goals corresponding to Paris Agreement; not only promise to achieve Net Zero Emissions by 2050, but also to achieve Net Zero Emissions in own operations including office buildings and warehouses by 2030, and comply with the framework of the Task Force on Climate-Related Financial Disclosure (TCFD) to strengthen climate governance. Meanwhile, the Company actively developed clean technological product solutions with engineers and customers, to assist in promoting the transformation of the green industry, and to create a sustainable supply chain together with value chain partners.
For human capital, WPG Holdings persists in developing employee functions, and is committed to creating a friendly workplace that is inclusive, diverse, innovative, and open. We set competitive compensation through the fair appointment of staff, performance management, talent cultivation, and compensation surveys and analysis. The company also conducts diversified education and training courses to encourage work-life balance. We believe that employees are the most crucial asset. It is always at the core of our strategy to keep on attracting and motivating the talent to involve. In 2021, we launched the "Employee Stock Ownership Trust Plan"(ESOT), attracting more than 90% of employees to participate. During the pandemic period, to protect the health of our colleagues, we have launched several pandemic prevention measures. We put the health and safety of our employees as the priority, and through rolling adjustments to advance deployments, to enhance the overall pandemic prevention capacity of the workplace and reduce the impact of the pandemic on business operations.
For social participation, we continued to encourage colleagues to participate in various social welfare to achieve a positive impact cycle on society. WPG is committed to youth training and caring for the disadvantaged. Through industry-academia cooperation, we share supply chain management knowledge and resources and provide a stage for the development of the youth in society, with the hope to connect the industry and academia to cultivate the elites in the industry in Taiwan and strengthen industrial competitiveness.
Looking forward, WPG Holdings will consider the sound corporate governance as the cornerstone, continuing to practice the vision of " The First Choice of Industry • The Benchmark of Distribution", and fully implement the core values of “Teamwork, Integrity, Professionalism, and Effectiveness", pressing on improving sustainable management, to build a resilient and sustainable enterprise, and construct long-term competitiveness; upholding the spirit of openness, carrying on with listening to the voice of the market, and maintain good interaction with our stakeholders, such as customers, suppliers, employees, banks, investors, government agencies, etc, jointly pursuing the perpetual goal of "Grow Together, Strive Together and Win Together”.
Chairman Simon Huang
Letter from the CEO
While the Covid-19 pandemic was raging in 2021, the semiconductor industry ecosystem was turned over, and the supply chain was reshuffled. It was also a year of uncertainties and extremely challenging for WPG Holdings.
At the beginning of the year, WPG Holdings convened the first annual conference of "Cross front-end and back-end, Cross-function, and Cross-region". Under the core goals: "Glocalization, Greatness, Empowerment, Effectiveness, Succession, Happiness", we adhere to the core values of "Teamwork, Integrity, Professionalism and Effectiveness" (T.I.P.E) of WPG Holdings, begin with the end in mind, and carrying out short, medium and long-term plans from 2021 to 2026.
In mid-2021, Taiwan was facing the stringent test of the pandemic. With the intention of maintaining the ordinary operation of the Company and protecting the health of employees, WPG had implemented working from home. Every colleague was faced with the challenges of the establishment in diverse mechanisms for "work online" and accommodating to emerging work patterns. From mid-May to early September, online T.I.P.E. was exchanged across front-end and back-end, cross-function, and cross-region. The management teams learned together, contemplated, planned, and developed corresponding mechanisms according to their individual functions, and expected the best preparation for a new scenario of online and offline hybrid collaborative work patterns in the future.
In the context of the dominant trend of regional short-chain in supply chains, in the third quarter of 2021, the official operation is commenced in the European subsidiary of WPG Holdings, which allowed WPG Holdings to move forward with a big step toward the goal of "Glocalization". In addition, in terms of services of the industrial supply chain, from the original turnkey service of semiconductor component distributor, cutting and modularizing into four flows of industrial supply chain solutions such as "Information flow, Logistics, Financial flow, and Business flow". As specified by the actual needs of upstream and downstream partners, provided more flexible and diversified services. In the year of highly dynamic changes in the circumstances of the industry and the market, the management team had been prudent with perseverance. Finally, the sales performance and the profit both hit a record high in 2021!
Having gone through the disturbance of the pandemic, the world is striving to get back on track. Based on the remarkable achievements in 2021, the annual key focus of WPG Holdings will ameliorate all aspects of "quality" in 2022. Pursuing the core goal of “Glocalization, Greatness, Empowerment, Effectiveness, Succession, Happiness", from the main items of the operation and management at the front-end to the annual work focus of WPG holdings’ functional department at the back-end, each operating unit makes a wise choice on the basis of its medium and long-term strategic goals. Irrespective of whether financial figures or non-financial figures, the top priority is the improvement in the quality of the output. Looking forward to 2022, when the prospect of the industry remains unclear, we will take a step-by-step approach so that we can unwaveringly move forward with the vision of “ The First Choice of Industry • The Benchmark of Distribution”.
CEO Mike Chang