Seizing Opportunities to Reach Double Highs and Create New Success

John T. Yu, Group Chairman of CTCI

In recent years, black swan events, such as climate change, the COVID-19 pandemic, rising interest rates and inflation, and the Russo-Ukrainian War, have taken place one after another. They have not only test enterprises' resilience and adaptability but also provided many inspirations and new business opportunities. Facing such trends and challenges, CTCI has actively expanded the business layout, striven to innovate and make breakthroughs, and achieved continued success to create a better future!

Record-high Performance in Two Aspects to Achieve 100 Billion Mark in Near Future

CTCI continues to enhance the development in the existing hydrocarbon and infrastructure, environmental, and power related business fields. The most representative large projects implemented in recent years include:
．The world's largest onshore module project: GCGV 1.1 million tons MEG turnkey project in the United States;
．The LPIC EPC 1 870,000-ton steam cracker turnkey project in Oman, with the record-breaking 77 million safe working hours;
．The Hsinta Power Plant and Taichung Combined Cycle Gas Power Units turnkey project, with a record-breaking contract amount; and
．Obtained the Ras Laffan Petrochemicals (RLP) EPC Project, one of the largest ethylene plant in the world by capacity, in Qatar successfully in 2022.

In addition, the performance of our high-tech business is brilliant. With the Groups' endeavors, CTCI has been favored by world-renowned semiconductor companies and designated as their partners, thereby quickly accumulating outstanding performance in the high-tech industry.

Looking back on 2022, CTCI has witnessed remarkable achievements throughout the year. In addition to the annual revenue of NTD95.1 billion and the backlog of contracts in the amount of NTD328.9 billion, both of which have hit record highs, the amount of our contracts signed with clients has remained as high as NTD102.5 billion, and we have been recognized by multiple indicative enterprise evaluations; for example, we sustained top place in the engineering contracting category in the Top 650 Enterprises in the Service Sector by CommonWealth Magazine and were ranked 60th in Top International Contractors by ENR, an U.S. authoritative engineering magazine. Not only has CTCI remained as No. 1 engineering company in Taiwan and in the Top 100 around the world but we have made great strides toward the target of NTD100 billion in revenue!

Ensuring the Sustainability of the Earth with Green Engineering

The issue of net zero and sustainability is an international trend and also a critical issue to which enterprises need to attach importance. CTCI has long been committed to the development of the environmental, social, and governance (ESG) aspects with the core business in engineering, seized the great business opportunities arising from the net-zero transition trend, and successfully carried out a series of green engineering projects around the world. As a Guardian of Sustainable Earth, CTCI's 7,000 employees around the world are actively realizing the vision of "net-zero EPC," while working with global supply chain partners to achieve sustainability and reciprocity and assisting owners in achieving their energy-saving and carbon reduction targets, with a view to maximizing the influence of our sustainable engineering endeavors.

CTCI's green engineering covers the three aspects: green technologies, green contracting, and green investment.

．Green technologies refer to the technical solutions to energy conservation and carbon reduction needs of our client in the process of EPC projects, from engineering design, procurement, to construction.
．Green contracting refers to the execution of eco-friendly engineering projects. Take backlog of contracts as an example, the proportion of our low-carbon and green engineering projects to the total contract amount has increased from 23% in 2015 to 66% in 2022, a substantial increase of 412%.
．Green investment refers to eco-friendly investment in the form of BOO or BOT, such as water reclamation plants, biomass energy centers, and solar power plants.

Such green engineering projects are our maximum contribution to the sustainability of the Earth with our core engineering business.

The outstanding performance in green engineering has not only made CTCI a domestic leading company in the market shares of the fields of incineration for power generation, water resources, LNG receiving terminals, and MRT electromechanical systems. In recent years, we have successfully expanded our business to solar photovoltaics and offshore wind power, energy storage, and other new energy fields. Take the TSMC Southern Taiwan Science Park Water Reclamation Plant, which was launched in 2022, as an example, we were commissioned by TSMC to be responsible for the investment, engineering design, construction, and 20-year operations of the plant. For this project, we adopted innovative technology and advanced biological treatment procedures with a low pollution load to significantly reduce energy consumption and sludge and achieve multiple benefits, including energy conservation and carbon reduction, reduction of secondary pollution, and zero discharge of wastewater. It is the world's first water reclamation plant that successfully recycles and reuses industrial wastewater in the semiconductor processes, marking a major milestone in water resource cycling.

Through these green engineering projects, CTCI has not only striven to achieve the net zero goal but worked with global supply chain partners to provide clients with "net zero and emission reduction" value-added services to create a triple-win outcome. Meanwhile, these  projects are closely related to everyone's daily life. From the sunlight, water, wind, to electricity, resource cycling, and MRT, CTCI has endeavored to create green lifestyles quietly, making specific contributions to the sustainability of the Earth.

Ample Business Opportunities to be Anticipated as a Great Supply Chain Partner for the High-tech Industry

In response to major factors in the environment and changes in the industry trends, CTCI established the Advanced Technology Facilities Business Operations (ATFBO) in 2020 as a move to step into the high-tech industry and set up an office in Arizona, United States, to provide turnkey engineering services to the semiconductor companies from Taiwan. As our exceptional performance has successfully attracted global high-tech clients' attention, we, so far, have signed contracts worth NTD60.2 billion with clients in this field and provided factory engineering construction services to well-known companies in the fields of semiconductors, cloud data centers, panel optics, computer and battery components, as well as electronics and chemicals from home or abroad, including Molie Quantum Kaohsiung Li-Battery  project, an international DRAM factory construction project, a data center construction project for an international company, and a semiconductor supply chain partner's engineering design project. This indicates that CTCI has successfully grasped the business opportunities from the high-tech industry supply chains as the most reliable partner for internationally well-known clients, and our prospect for future business development is promising.

CTCI is the most experienced engineering firm in Taiwan in terms of carrying out overseas engineering contracts, having a great expertise. With the resources of local branches spanning across the globe, we not only provide Taiwanese businesses with the best one-stop turnkey factory construction service but are strong in investment and development, giving us a unique niche and competitive advantage. Take the U.S. market as an example, with the CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act in place, local semiconductor and memory manufacturers' plant expansion projects are booming, so business opportunities will arise. With our successful experience and achievements in delivering TSMC Southern Taiwan Science Park Water Reclamation Plant and purifying and reusing waste isopropanol (IPA), we will strive to win plant construction projects and carefully evaluate suitable investment targets. Moreover, to respond to the clustering effect in the North American electric vehicle market, we will evaluate the establishment of a new office in Mexico. To keep abreast of the international supply chain migration and production transfer trend, we will work to seize the business opportunities from high-tech plant construction and supply chains through our branches in India and Vietnam, which have been developed for many years.

Company-wide ESG Efforts Contributes to the World’s Top ESG Performer

As a leading enterprise in Taiwan's engineering industry, it is CTCI's duty to lead the industry to achieve sustainability together. Internally, we promote company-wide ESG engagement to achieve net-zero EPC, thereby linking business operations to our ESG targets, raising employees' awareness of the ESG concepts, and then incorporating ESG into daily work as part of our DNA. Externally, we implement green engineering projects, work with project owners and supply chain partners to ensure the sustainability of the Earth. We actively respond to the green commitment, for which we joined the Taiwan Alliance for Net Zero Emission and the Association of Taiwan Net Zero Emissions and participated in the Science Based Targets initiative (SBTi), and based on which have set emissions reduction targets and formulated a net zero and sustainability strategy blueprint, to steadily achieve the net zero goal for offices by 2030 and for project sites by 2050.

CTCI's efforts in ESG have been recognized internally. As per an employee engagement survey conducted by an external entity, as high as 78% of our employees recognized our efforts in ESG, ranking first in all indicators, which indicated the effectiveness of our ESG endeavors. Meanwhile, we have been recognized with ratings and awards at home and abroad, including:
．We have been selected as a constituent stock of the DJSI Emerging Markets for eight years and ranked first in the global construction industry in the most recent two years;
．We have won the Most Prestigious Sustainability Awards-Top Ten Domestic Corporate at the Taiwan Corporate Sustainability Awards (TCSA) for six years;
．We have been ranked in the top 5% of Taiwan Stock Exchange's Corporate Governance Evaluation for seven times;
．We were selected for the Taiwan Sustainability Index (TWSI);
．We have been awarded many honors, including the MSCI ESG Ratings, the CDP Evaluation, Global Views Monthly's First Prize in CSR and ESG Comprehensive Performance in Service Industry, CommonWealth Magazine's Excellence in Corporate Social Responsibilities Award, the Taiwan Circular Economy Hero Award, and the Diversity, Equity, and Inclusion (DEI) Award.

Looking ahead to 2023, CTCI will continue to provide global clients with faster, better, and more sustainable engineering services with the "Most Reliable" brand spirit and join hands with companies in the industry to protect the environment and safeguard the world through sustainable, innovative, and green engineering services.