Page 7 - 台玻集團2019 CSR英文版

2019 Corporate Sustainability Report TAIWANGLASS

The flat glass market in China has been slowed down due to U.S.-China Trade War. The economic
growth rate has been revised downwards, and the oversupply would remain the same in the short term.
Taiwan Glass' subsidiaries in China will continue to implement management, industrial safety and close
control on COVID-19 pandemic while optimizing and upgrading production lines to maintain profitability.

As for fiber business, the technology and quality of Taiwan Glass's fiberglass products have always
been the Company's core competency. For FRP, the new kiln, in cooperation with Owens Corning of the
United States, started production this year, along with the most advanced fiberglass formulation and
production technology. We are committed to reducing production costs and supplying customers with high
performance and environmentally-friendly products.

In 2019, increased overall sales by 16% compared with 2018 can be attributed to the slightly
increased demand for electronic-grade fiberglass fabric and the production of fiberglass fabric in Anhui
Bengbu factory. In response to the market trends in the future, other than the ultra-thin fiberglass fabric
#1017 which we have successfully developed and supplied, we have put continuous efforts into developing
thinner fiberglass fabric. At the same time, with the vigorous development of 5G applications, we have
also successfully developed low-dielectric (Low DK) fiberglass fabric, which has been certified and
continuously adopted by international terminal manufacturers. The global target market share of 2020 is
expected to be 20%.
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As for container, tableware and kitchenware glass, the production capacity increased by 4.6%, and
ƹ33 high-quality heat-resistant feeding bottles have started production. Tableware and kitchenware glass
continue to increase sales channels and diversify its products while working hard to establish our private
brand, TG, to beat low price competition.

Shihlien Chemical Industrial Jiangsu Co., Ltd., reinvested by Taiwan Glass, has been profitable for
three consecutive years as of 2019. The company has continued to optimize manufacturing process,
improve production capacity, implement safety & hygiene management to maintain stable and continuous
production as well as shipping. Shihlien Chemical Industrial Jiangsu Co., Ltd. is expected to generate profit
in 2020.

Looking ahead, the global economy is faced with a major recession as the COVID-19 pandemic
develops and the trade war continues. In response to changes in the future, Taiwan Glass develops new
products such as high-performance FRP S2 glass and low-dielectric Low DK fiberglass fabric to add value
to products. For flat glass, we will re-examine product structure and reduce cost to improve operating
performance while pursuing our primary goal of achieving profitable growth.

In terms of corporate governance, we are dedicated to implementing corporate social responsibility,
cultivating outstanding talents, providing safe & healthy workplaces and innovative & optimized services,
etc. We also intend to make adjustments to partial assets in China to improve overall profitability. Taiwan
Glass will strive to create value for stockholders and employees and become a role model for sustainability.

Chairman of TAIWANGLASS