TAIPEI, Taiwan, R.O.C., May 26, 2022 – Primax Electronics (TWSE: 4915) held its Annual General Meeting today under the Chairmanship of Raymond Liang. The General Meeting approved Primax Electronics’ (“Primax” or “the Company”) consolidated financial statements for the fiscal year of 2021. The General Meeting also decided on the distribution of an ordinary annual dividend, and a cash dividend of NT$3.10 per share was declared on 2021 results. Other agendas discussed and were approved in the General Meeting include: 1) Procedures in acquiring or disposing assets; 2) Guidelines on issuing restricted stock awards (RSA) to employees and senior management; and 3) Removal of the competitive clause for Board of Directors.

With regards to business operations and financial performance, the Company once again achieved revenue growth in 2021 and delivered record-high earnings. Primax’s consolidated revenue in 2021 reached NT$71.65 billion, on net income of NT$2.298 billion, which translates to an earnings per share (EPS) of NT$5.13. From a profitability standpoint, gross margin reached 13.1% in 2021, a 1.2 percentage point (ppt) year-on-year (YoY) improvement, while operating margin was 3.9%, a 0.5ppt YoY gain.

Thanks to operational resilience and a visionary approach of constantly investing in new technologies and products, Primax quickly recovered from the pandemic. Precautionary measures were also taken to diversify and secure key component supplies. To further mitigate risks, efforts were made to diversify production sites and supply chain, so that the organization may better adapt to a growing trend of spread out global production in the post-pandemic era.

For its visual technology, Primax has successfully grown the business through sequential revenue growth from automotive electronics, especially from increased shipment of camera modules to leading electric vehicle manufacturers while deepening cooperation with customers on product development. Revenue and profit contributions from police cameras rebounded thanks to a gradual ease of component shortages in 2021, while progress has also been made in expanding into new businesses such as fitness equipment and smart door lock. Over the past year, Primax’s subsidiary Tymphany, has been focusing on professional audio and high-end consumer products, as well as video and conferencing solutions. Tymphany’s focus on new businesses will pave way for growth in the upcoming years, as mass production of these new products will translate to future revenue and profit growth for the Group. In addition, benefiting from a growing trend of hybrid work, demand for PC and NB peripherals, optoelectronics, and multi-function printers was strong throughout 2021.

In 2021, information products accounted for 56% of Primax’s total revenue, followed by smart lifestyle products (28%) and Auto / Industrial AIoT related products (16%). Compared to 2020, Auto / Industrial AIoT products have significantly become more important to Primax, as the weighting has increased from 10% in 1Q20 to 16% by 4Q21, and further increased to 21% in 1Q22.

For its production strategy, Primax will continue to upgrade its manufacturing capabilities in line with the concepts of smart manufacturing and Industry 4.0. With an increased adoption of artificial intelligence, the Company expects continuous improvement in employee productivity. Meanwhile, with aims of expanding its global footprint, the Company will be continue to ramp up production in Thailand, and expand and solidify its supply chain. The Group will diversify its supply chain to lower costs while at the same time, ensure products are manufactured with high quality and yield.

Lastly, the Company is placing strong emphasis on ESG by aligning its strategies with United Nations’ Sustainable Development Goals (SDGs). Definitive goals will be set at the Group level to enforce carbon reduction and energy conservation, while also actively participate in charities and support for underprivileged in remote areas. Moreover, attention will be directed to employee welfare and corporate governance in support of Primax's goal as a best employer and to achieve a sustainable business development. Since 2019, Primax has been ranked as the top 5% listed entities in Taiwan for best corporate governance by Taiwan’s Financial Supervisory Commission (FSC). Having received this accolade for three consecutive years is a testament to Primax’s execution capabilities, dedication on corporate governance and unwavered goal of implementing sustainability into its business operations. It also demonstrates Primax’s business integrity and the effectiveness of the Company’s Board, and shows a commitment of maintaining shareholder rights and improving transparency.