INVESTORS

Letter to Shareholders

Dear Shareholders,

The company’s consolidated revenue was NT$ 16.12 billion in 2016, up 8.4% from last year’s NT$ 14.88 billion, reaching a record high! According to the information released by IEK of Industrial Technology Research Institute, the output value of Taiwan’s machinery industry was down 6.4% from 2015. In such an environment, HIWIN was still able to deliver stable performance because it has made long-term investment in brand management, global marketing, refined process and innovations. That’s why its output value could still grow before the global economy disentangles itself from New Mediocre, which shows HIWIN’s strong business capacity with global layout!

Having always been devoted to developing intelligent automation products, HIWIN is the best partner of industry 4.0. For example, using the smart ball screw and linear guideway system with the sensing function, the operator can monitor and predict the machinery equipment service condition remotely from the cloud, which increases the product’s added value. The product has attracted several big factories from Germany and Japan to seek business partnerships with HIWIN in various exhibitions. HIWIN has also signed a memorandum with Siemens Taiwan to help with the transformation and upgrading of Taiwan’s machine toll industry. In the future, they’ll integrate their technologies and techniques to assist their customers and build a digital smart factory step by step.

In terms of medical products, Robotic Gait Training System is being sold in mainland China; the robotic endoscope holder has also achieved CE certification, been used in abdominal operation training course in IRCAD/AITS and extended to Southeast Asian market; after achieving CE and TFDA certification, the robot for bath starts to be used in social welfare institutions, striving to improve humans’ quality of life

To cope with the rapidly growing requirements for intelligent automation and robots, HIWIN expands its global manufacturing base positively: HIWIN Offenburg was completed in 2016, and land was purchased in Chicago for expansion to intensify the local market capacity. In Taiwan, the groundbreaking ceremony of a new factory in Chiayi Dapumei Precision Machinery Park was conducted, which was required to be designed and planned with the concept of intelligent manufacturing and will serve as the manufacturing base of robots, ball screws, important manufacturing processes of front ends of linear guideways. This overall arrangement will add momentum to HIWIN’s revenue growth while it’s marching towards the world’s No.1 leading brand.

HIWIN gained recognition from media at home and abroad for its R&D innovation and business performance. It ranked 5th in Top 100 Listed Enterprises by Comprehensive Growth Force published by Nikkei Business in 2016; the single axis robot designed by R&D team from HIWIN Germany won iF and Red Dot awards, making HIWIN the frist manufacturer that won 2 awards at the same time in the global drive control field; it won Taiwan Excellence Gold Award and Taiwan Excellence Silver Award given by the Ministry of Economic Affairs for the 17th consecutive year; Robotic Gait Training System also achieved SNQ certification and won the bronze medal of “National Biotechnology & Medical Care Quality Awards” (it has become the “Oscar” in Taiwan’s biomedicine circle, reepresenting the recognition for the highest quality). Besides, it was also awarded “Taiwan Corporate Social Award”, “Taiwan Corporate Social Award-People Development Awards” and the Gold Award of Top 50 Taiwan Corporate Sustainability Reports by Taiwan Institute for Sustainable Energy. These are some achievements of the HIWIN team’s long-term efforts.

The investment of HIWIN still focuses on education, includig holding “HIWIN Thesis Award” for the 13th time, JIMTOF, “HIWIN Doctoral Dissertation Award” for the 6th time, which motivated students and teachers from mainland China, Taiwan, Hongkong and Macao in the machinery field to participate enthusiastically and improved the education quality in mechanical engineering and intelligent automation fields, and the 9th “HIWIN Intelligent Robot Arm” practical competition, where young students gave life to the cold robot arms, and assisted Taiwan Automation Intelligence and Robotics Association holding automation engineer (the 15th) and robot engineer certification exams (the 1st).

Looking ahead to 2017, we can see that the trend of intelligent manufacturing will be more clear, which will provide a greater development opportunity for our products. Though Trump’s being in office brings uncertainties, all our colleagues will still work positively. I believe we certainly will continue to create brilliant achievements in the new year with the support from all our colleagues, all shareholders, government agencies and banking consortia!