Greetings to all of our valued shareholders, 

Kaohsiung Music Center, which has hosted year-end countdown events broadcasted on many TV channels in recent years, Industry Zone of South Base of Taipei Music Center, National Taichung Theater and other benchmark buildings in Taiwan all have used Goldsun's innovative methods and high-end concrete products. The construction of factories in science and technology industries that supports the backbone of Taiwan's economy in recent years has also spread in various science and industrial parks across Taiwan. We have also witnessed ready-mixed concrete trucks operated by Goldsun entering each construction sites one after another in an orderly manner. 

Behind these large-scale constructions is the Technology Control and Services Center, a huge investment by Goldsun, which has has borne fruit in technology capability to control 28 concrete plants, the most in the industry, in Taiwan. Each region now has 3 to 5 concrete plants to conduct collaborative operations and large-scale pouring of concrete. The Center schedules countless concrete trucks to travel to various construction sites all over Taiwan to pour concrete, which have improved the benefits of distribution channels in regions and competitive advantages of the Company, continuing to create record-high revenue and profits, and we have continued our high percentage payout of dividends to give back to all our investors. 

Not only that, since the establishment of Goldsun Group's research and development center more than 20 years ago, the Group has continued to advance its product innovation process. In 2015, it launched the "Goldsun Peace-of-Mind Building Materials Traceability", and more than 2,500 new buildings have adopted the practice, contributing to the safety of building structures throughout Taiwan. This year, the Group aligns itself with the advanced technology and the vision of environment protection around the world to conduct feasibility study of alternative materials for by-products of concrete and develop carbon reduction technology, so that the Group can maintain its leadership in carbon competitiveness and contribute to environmental protection of energy conversation and carbon reduction with ESG. 

Business and Financial Performance 

The consolidated revenue of Goldsun Building Materials Co., Ltd. in 2022 was NT$21,278,780 thousand, which was a decrease of NT$522,919 thousand, or 2.40% (please refer to the table below), over NT$21,801,699 thousand in 2021. The 2022 net income was NT$4,236,108 thousand and the earnings per share was NT$3.51. The composition of consolidated revenue is as follows:

Technological Development 

Goldsun's research and development center has been established for more than 20 years. Each year, a considerable amount of funds is committed to R&D engineering. The results have accumulated to become the Company's competitive products in recent years. They create huge business opportunities and change Taiwan's skyline with beautiful buildings.  In recent years, Goldsun has provided high-end mass concrete, raw concrete, high-strength concrete and high-flow concrete to benchmark projects which highlight the architectural beauty of Taiwan, and the projects include the Kaohsiung Music Center which has hosted year-end countdown events broadcasted on many TV channels in recent years, and Taiwan Architecture Award winners such as the global operations headquarters of Giant Manufacturing Co. Ltd., Tainan Art Museum Building 2 and the Presbyterian Church in Tainan. These benchmark buildings all have used Goldsun's innovative methods and high-end concrete products.  In terms of the Taipei Music Center, known as one the most beautiful landmarks in Taipei, the Industry Zone in the south base used concrete from Goldsun for its main structure, and Goldsun was able to win the 2022 Concrete Construction Excellence Award presented by the Taiwan Concrete Institute, which gives out the award every two years. 

With its leadership in product R&D, Goldsun will continue to set the trends in practicality and performance of factories and aesthetics and environmental protection of buildings in Taiwan and meet the performance and application requirements of products.  For 2023, the progress of research and development of products will include, 1. Incorporate carbon footprint assessment into various products, construct carbon footprint traceability information and database, and jointly develop concrete carbon sequestration technology. 2. Continue feasibility study on the alternative raw materials of diverse by-products and development of diverse carbon reduction technology. 3. Carbon footprint verification application for green building materials labels and products, and the development of related products. 4. Practical application of ready-mixed concrete smart process technology. 5. Development of high-performance, self-healing and other functional concrete products. 

Future Development (Impact from Competitive Environment, Regulatory Environment and Overall Operating Environment) 

Overall business environment: According to the Department of Statistics of the Ministry of Economic Affairs, the total volume of ready-mix concrete sold in Taiwan in 2021 and 2022 were 43,729 and 44,581 (year-over-year growth of 1.95%) thousand cubic meters, respectively. For Goldsun, the total volume of ready-mix concrete sold in 2022 was 6.34 million, a stable amount compared with that of recent years. For 2023, it is expected that the major economies in the world will experience a slowdown, and with the continuous slowdown of the domestic housing market, the sales volume of ready-mix-concrete will be affected. 

External competitive environment: Looking ahead to the global economy in 2023, major international forecasting agencies believe that the economy may slow down. Although Taiwan's export performance may be hit by the weakening of global economic demand, and that companies have become conservative in their capital investments due to rate hikes, which resulted in the significant slower growth of investment in the private sector, the government's budget for forward-looking projects and public infrastructure has been at a record high. There are also housing policies to suppress speculation and enable the transactions of personal use properties to return to the mainstream. Urban revitalization, renovation of old buildings, introduction of public housing and other strategies for the infrastructure remain unchanged to support the growth of the housing market. 

Besides, the continuous promotion of railway construction by the central and local governments will drive development and use of land plots around the construction projects. The completion of public construction and traffic network projects continues to drive the growth of nearby regions. For example, the Beitou Shilin Technology Park, the 14th phase of re-zoning projects in Taichung, and new industry clusters in Tainan and Kaohsiung due to the expansion of TSMC create semiconductor tech corridors to inject more vitality to the surrounding housing markets through industry investment and urban renewal. 

Operation and challenges 

With the abovementioned challenges of external factors and market opportunities shown, Goldsun Building Materials will continue to highlight the positive and negative factors in its future development strategies, and actively and flexibly respond to the long-term business development, and apply its 69 years of accumulated skills and experience to different market segments to expand its concrete plants which it has the most in the industry. For example, Taiping plant in Taichung has been put into operation this year, followed by Rende plant in Tainan and Xizhi plant #2 in New Taipei City which will be added. Fengshan plant and Renwu plant will add production capacity, and the Group will continue to assist in the construction of plants for the technology industry and regional projects with its advantages in production capacity and channel distribution. As for the regulatory environment, the Company is ready to take appropriate measures to comply with the regulations at any time, and accordingly revise the internal standards and relevant regulations. 

At the same time, Goldsun will take huge steps toward becoming a group offering full lines of building materials. The new product, ALC lightweight bricks, from Goyu Building Materials have six advantages, fire resistance, sound insulation, heat insulation, firmness, safe and economical, which make them comply with various domestic building act and regulations. They have been rigorously tested and validated by several national-level laboratories, and become a hot-selling high-end building materials products in the market. In terms of the asset revitalization effort, the Nangang Large-scale Development Project has held a groundbreaking ceremony a few months ago and is expected to be completed in 2027. As the project is located in the prime location of the gateway of the East District in Taipei, close by the hub of four main railway transit lines, and right by the High Speed Rail line to Yilan, the potential benefits are huge, and profitability and asset revitalization will help Goldsun become a quality enterprise of the century.

We give you our best regards for the upcoming future!

Chairman Lan-Ying Hsu