TECO held a shareholders' meeting today. During the meeting, a cash dividend of NT$1.35 per share was distributed. Chairman Sophia Chiu said, although there are uncertain factors such as the pandemic and inflation this year, the company will target carbon neutrality and declare that it will be carbon neutral by 2030, achieve 50% emission reduction in ten years, strive for business opportunities in smart manufacturing, smart energy, and smart city solutions, and actively strive for more than 80% market share of domestic electric bus power systems.
Sophia Chiu said that TECO will continue to promote advanced power control and electromechanical integration in its core electromechanical systems and automation business, especially in electric vehicle power systems, and will continue to expand OEM manufacturing business opportunities in the planning of its three major business groups this year with target growth of more than 60%, and strive for a market share of more than 80% of domestic electric bus power systems.
In terms of carbon neutral solutions, Sophia Chiu said that TECO will enhance the growth of energy-saving products and smart services with solutions such as high-efficiency motor drive control systems, waste heat recovery power generation, and inspection-free equipment to benefit from Taiwan's renewable energy policy. The company is optimistic about the Taiwan market after 2025 when there will be 1GW of energy storage demand per year.
Sophia Chiu pointed out that TECO’s smart energy business group is currently actively deploying including offshore wind power and onshore substations with a market share of 35%, solar engineering construction with a total order scale of 11.4MW, and other related renewable energy projects, and has obtained the target energy storage project "Longtan Energy Storage Demonstration Turnkey Projec.t" In the future, the company will bid on the Taipower Energy Storage Demonstration Project, as well as offshore wind power land substation and offshore substation project contracts.
Sophia Chiu explained that Taipower's "Longtan Energy Storage Demonstration Turnkey Project" costs about NT$2.6 billion and it is expected to reach 20MW. This year, overall energy storage can reach 100MW smoothly. At present, obtaining orders will not be completed all at once this year but be actively followed up. The company will compete for relevant cases and expect the energy storage business to grow every year. Overall business opportunities are expected to reach NT$150 billion by 2025.
In terms of TECO Air Conditioning and Smart Life Business Group, TECO President Thomas Fann, said that he will continue to provide global smart air conditioning and energy management solutions and is committed to innovating business opportunities including the launch of a "Home Delivery Smart Refrigerator Solution" and "renting instead of buying a new business model" by combining the Group's resources and IoT technology. The company uses digital tools to accelerate the development of more smart city application business opportunities.
Sophia Chiu emphasized that TECO completed the first-stage sustainable goal of "20% emission reduction in ten years" ahead of schedule in 2021. This year, it will increase its target to "50% emission reduction in ten years" and the implementation scope will be expanded to overseas factories to move towards carbon neutrality. Looking forward to operations in the second quarter, despite challenges in the supply chain, the outlook for orders on hand is good, and the company is cautiously optimistic towards the year as a whole.
