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//Message from the Chairman//

In flat glass, under the situation of inactive real estate in Taiwan, the quantity of domestic demands Leadership CH.1 Sustainable Glass
only stayed level. Besides continuing to produce high added value products and enhancing after-service
by combining clients' demands, we appealed to the Government for pushing adaptation of Low-E energy
saving glass to reduce power consumption of air conditioner, responding to the stage of energy transition
and adjustment of power supply of Taiwan. CH.2 Ethical

In ultra-thin glass, it continues to be sold to the markets of Europe and America, India and Vietnam. Operation
We cooperate with customers to develop new products and ensure the products will comply with quality
standard of the industry can be supplied, and increase product sales volume.

The sales volume of flat glass in Mainland China markets was increased. The market faces strict
environmental regulations and emission reduction measures, and continues to consolidate supply-wise. CH.3 Quality
However, the overproduction still exists. Since this April, the VAT rate of China enterprises has been adjusted
from 16% to 13%, meanwhile, the general industrial oil and gas price and five social insurance and one Management
housing fund are decreased to effectively reduce the production cost of enterprises. All TGI's subsidiaries in
Mainland China comply with the environmental standard, carry out the control of risk and industrial safety.
TGI fully uses its flexible capacity and inventory to optimize its industrial structure by forbidding adding new
Chairman capacity strictly, and supervise the backward production capacity.
Lin, Por Fong
In fiberglass, the Electronic Fiberglass Fabric suffered a mild correction last year. TGI is self-sufficient on raw
In the first half of 2018, the domestic and international demands raised the economy of Taiwan. In the material and production, that it, we still have the advantage of competition on cost. Taichia Bengbu Glass Protection CH.4 Environmental
second half of 2018, the rising Fed rate brought the rebound of the USD, and high export base period as well Fiber Co., Ltd. in Anhui of China started production this March. It is predicted to reach full capacity in second
as US-China trade conflict slowed the economy. In addition, Brexit is postponed, and GDP of Mainland China quarter of this year with yearly capacity of 35 thousand tons. Nowadays, emerging technology applications,
in 2018 hit a record low with 6.6%. With the possibility of an economy downturn in 2019, the International IoT, and automotive electronics industry are still under rapid growth. TGI continues to strive for orders to enter
Monetary Fund (IMF) has lowered the global GDP growth prediction to 3.3%. Institutes in Taiwan have also the high-end customer supply chain.
forecasted that the domestic economy growth in this year will be lower than in last year. From this spring, the For FRP, TG Tauyuan Factory has signed an agreement for technology cooperation, manufacturing and
US-China trade conflict has eased. In addition, the Fed's announcement of stabilizing interest rate, and the supply with Owens Corning, and obtained the most advanced fiberglass formulation and technology in CH.5 Friendly
homecoming of Taiwanese enterprises could have positive effect for the economy in 2019. Workplace
the world. The equipment is promoted in second quarter of this year to help cut production costs efficiently.

The rise of global economy brought TGI's growth in first and second quarter of 2018. However, excess Comparing with the traditional steel material, it has more flexibility to be designed, processed and recycled.
market capacity and rising raw material prices led to lower operating gross profit. Although the corporate These advantages meet energy saving and environmental trends.
business achievement of whole year is not better than it was in 2017, we still maintained a certain profit CH.6
In container, tableware and kitchenware glass, two tableware production lines of TS-6 in Hsinchu Factory
performance. TGI's consolidated net income before tax achieved NTD1.55 billion. We make a brief report by
were replaced by IS M/C equipment to produce container glass. Through transferring effect of US-China Care
product lines as follows. Community

006 // 2018 TAIWAN GLASS IND. CORP. Corporate Social Responsibility Report // // 2018 TAIWAN GLASS IND. CORP. Corporate Social Responsibility Report // 007