12
48 In recent years, CPT has been shifting its focus to medium- and small-sized niche products and it has been firmly committed to green products and activities to minimize the impact of climate change generated by greenhouse gases. Energy conservation effects are a main consideration starting from the initial product design stage. CPT is also making an all-out effort to reduce carbon emission amounts generated during the product life cycle and is placing great value on the reduction of energy resource use for packaging and transportation as well as green logistics concepts. The manufacture of eco-friendly products is CPT’s stated mission. Customer first, staff participation, and a zero-defect target make up CPT’s quality policy. The establishment of long-term cooperative relationships and partnerships enables CPT to provide its customers with the most competitive, high-quality products and the most professional services in a rapid fashion with the goal of gaining customer support and approval. Provision of high-quality, innovative pro Joint promotion of corporate social resp and customers

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Page 1: Provision of high-quality, innovative products Joint promotion of … · 2016. 9. 30. · Provision of high-quality, innovative products and joint promotion of corporate social responsibility

48

In recent years, CPT has been shifting its focus to medium- and small-sized niche products and it has been firmly committed to green products and activities to minimize the impact of climate change generated by greenhouse gases. Energy conservation effects are a main consideration starting from the initial product design stage. CPT is also making an all-out effort to reduce carbon emission amounts generated during the product life cycle and is placing great value on the reduction of energy resource use for packaging and transportation as well as green logistics concepts. The manufacture of eco-friendly products is CPT’s stated mission.

Customer first, staff participation, and a zero-defect target make up CPT’s quality policy. The establishment of long-term cooperative relationships and partnerships enables CPT to provide its customers with the most competitive, high-quality products and the most professional services in a rapid fashion with the goal of gaining customer support and approval.

Provision of high-quality, innovative productsJoint promotion of corporate social responsibility together with suppliers and customers

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Provision of high-quality, innovative productsJoint promotion of corporate social responsibility together with suppliers and customers

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Adoption of new customer projects Customer satisfaction surveys

Customer complaint services

CPT promotes its new products in a timely fashion in accordance with market trends, activities of competing brands, and customer needs. All customer test stages are incorporated to achieve mass production standards and smooth delivery and assist customers in the market launch of the end product.

The maintenance of positive customer relations gives CPT a better understanding of potential needs. New technologies and products are promoted in line with the planning of new products by up- and downstream manufacturers. Product specifications, testing standards, and inspection regulations are reviewed, samples are assessed, and samples of new products presented. Product service personnel visit customers to inspect production lines to ensure a timely grasp of the product state and provide feedback on customer problems. Analyses are conducted and response strategies are adopted in special projects to resolve different quality problems experienced by customers and obtain customer approval. New plant areas and materials are adopted in coordination with supply chain planning to satisfy demands for large deliveries and maximize benefits.

CPT takes the initiative to understand our customers’ needs and problems and implements a customer satisfaction survey once in every six months, targeting on product quality, technology, delivery, price and restricted substance and the open comment field in the survey helps us collect customer feedback and suggestions. Results of the surveys serve as important benchmarks. At the same time, internal statistics on customer feedback performance indicators such as interrupted customer lines, a damaged business reputation, number of customer notifications regarding quality or delivery date issues are monitored.

The abovementioned two indicators are summarized and the results of the satisfaction analysis compiled and organized. This data is reviewed in business management review meetings and it serves as a reference basis for long- and short-term business plans.

CPT successfully achieved the target score in the 2015 Customer Satisfaction Survey. According to the monitoring result of customer satisfaction trends, in 2015, the overall customer satisfaction rate is improving. Therefore, to meet customers’ expectations and demands in quality and technology, CPT continues to strengthen the capability in production and manufacturing processes. We are committed to providing customer comprehensive services with stable quality.

To cope with the different demands of customers all over the world, CPT has established a Repair Service Center to provide customers with prompt and rapid after-sales services. If customers file complaints, professional customer service personnel proceeds to the customer end instantly to carry out an initial product analysis. Customer complaints are then passed on to the plant via the internal website. A dedicated unit then confirms and analyzes the problem. In addition, the quality engineering unit implements a containment plan and proposes curb strategies. Finally, the complaint processing department further reviews the reasons, carries out content analyses, and confirms whether the results and strategies meet the customer demands. Improved response strategies are conveyed to customers in a real-time fashion to resolve customer complaints and achieve customer satisfaction.

CPT Service Team

Sales Team

ODM Project Department

PM Team ME Team EE Team TP Team

CPT Support Team

LCD Team

CPT Group

PM

CS

Provision of the list of survey respondents

Confirmation of the list of survey respondents

*SALES

*CS

Preparations

Analysis results passed on to concerned units

Continued improvements by concerned units

Management and Review

*CS

Competent authority

*QSP

Review operations

Notification of responsible units to conduct satisfaction surveys

Progress of each responsible unit in the field of customer relations and care

*SALES

*CS

Implementation of survey operations

Unified collection of questionnaires by responsible units

Compilation and organization of questionnaires, and analysis and comparison

*SALES

*CS

Data collection and analysis

Customer Relationship ManagementCustomer support and approval is the key for future profitability. CPT is firmly committed to soliciting

customer opinions and demands to gain a better understanding of customer needs and be able to provide professional services. CPT acquires the trust and satisfaction of its customers through long-term cooperation and partnerships. Every customer contact from daily product sales operations to the provision of repair and maintenance services gives CPT an opportunity to gain a better understanding of their thoughts and feelings. CPT will continue to pass on sustainable development concepts to its customers in an effort to gain their support and approval. Regular customer satisfaction surveys therefore represent an important link of customer relationship management. CPT hopes that these efforts will convince customers to view CPT as a trustworthy partner.

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Products and servicesCPT is not an end-product manufacturer; therefore,

the company is not required to pass the safety specification certification. However, in response to customer demands and product safety issues, part of CPT’s products is certified for UL component standards to ensure product safety. After successful certification of UL standards, relevant products bear UL Safety Standard Mark. The company applied for safety certification of new products in line with customer demands in 2015. Safety certifications have been completed for the following items: a total of 22 vehicle-mounted models, 3 mobile devices, 10 industrial/PAD devices, and 35 new UL products in conformity to project and customer requirements (achievement rate of 100%)Module manufacturers conduct non-scheduled audits in all quarters in coordination with UL. In 2015, UL proceeded to CPT module plants to conduct a total of four audits. No shortcomings and deficiencies were detected. Future optimization goals: Integration of models with different dimensions and simultaneous application for certification to achieve optimized certification schedules and cost reduction.

In product restricted substance management, CPT makes all efforts to meet full compliance with relevant laws and regulations and respond to customer demands. We ensure that our products meet the international standards, including RoHS, REACH, SVHC and ELV and mark RoHS on every carton delivered to our customers. We pioneered the industry to introduce halogen-free (chlorine, bromine) green products into the market. In restricted substance control, we implemented health and safety improvement evaluation and our achievement rate is 100%. In 2014, the QC080000 system (2012 version) was activated and verifications were carried out. CPT passed the certification in December 2014 and acquired the QC080000 certificate in February 2015.

Level of satisfaction

Customerdemands

Improvement of old products

Development of new products

Service qualityenhancement

Demand for restricted substances

Business management review

95

90

80

85

Target reached!

First half of 2013

Second half of 2013

First half of 2014

Second half of 2014

First half of 2015

Second half of 2015

Actual customer satisfaction levels in the past

CPT marks RoHS on the cartons we deliver t o o u r c u s t o m e r s , s h o w i n g t h a t o u r products are compliant with RoHS standards a n d c u s t o m e r r e q u i r e m e n t s . N o incident of violation relating to product and service information and marking practices has been reported in 2015.

CPT marks UL on the car tons we del iver t o o u r c u s t o m e r s , s h o w i n g t h a t o u r products are compliant wi th UL s tandards a n d c u s t o m e r r e q u i r e m e n t s . N o incident of violation relating to product and service information and marking practices has been reported in 2015.

CPT is very serious about the quality improvement activities. Every year, the company organizes improvement competition exhibitions, showcasing employees’ achievements in the improvement projects to the management and their coworkers. And the top three winners are nominated to represent CPT in external competitions and exchange activities.

In the recent years, CPT participated in the National Unity Circle Competition organized by the Corporate Synergy Development Center (CSDC) commissioned by the Ministry of Economic Affairs (MOEA). Since 2006, CPT has had outstanding achievements. In 2011 and 2012, CPT won the Golden Tower Award for the Unity section and in 2013, CPT was upgraded to the Supreme Good Section for the company’s outstanding performance. In June 2015, the 6 Sigma improvement project “Low Temperature Ball Drop Bubble Improvement for In-Vehicle Panels” was led by Mr. Zhe-Wei Yan, Assistant Manager of the Taoyuan Plant, and the QCC improvement project was led by Mr. Hua-Sheng Wang, Assistant Manager of the Longtan Plant.

The “In-Vehicle Panel Metallic Bright Dot Improvement Project” was selected for participation in the 28th National Unity Circle Competition (Supreme Good Section)CPT engaged in exchanges with 16 project teams from other industries and companies such as TSMC, UMC, Unimicron, Macronix, Taipower, and Uni President. After a fierce competition, the company was honored with the Northern area dual “Chairman Award.”

CPT is honored with the Northern area “Chairman Award” in the supreme good section of the 28th National Unity Circle Competition

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Protection of customer privacyCPT stresses the importance of personal information

management. In coordination with the enactment of the “Personal Information Protection Act” in 2012, CPT announced the “Procedures for Management of Collection, Processing and Use of Personal Information” in 2013, aiming to protect customers’ privacy. Each department is authorized to set confidentiality to relevant documents and draft relevant policies and guidelines. A regular meeting and report system for up- and downstream suppliers has been established. Internally, CPT implements internal and external audits, and project management by dedicated personnel. In addition, response and processing strategies for confidential document or technology leaks have been formulated.

CPT understands the importance of protecting customer information, including information of customers’ company, specifications of orders, prices, product specifications and delivery modes. Therefore, we build a customer information management system in 2011. Through building this management system, we established customer privacy and product databases to effectively consolidate and classify information. This digital system also saves space and ensures the safety of stored information. Dedicated personnel manage this system and only authorized personnel can access the information. The security and authentication mechanism secures access to the database through ID/password to ensure the security of customer data, prevent unauthorized access, leakage, loss and modification and protect customer privacy, as well as product information, so we can achieve mutual trust and maintain positive relationships with customers.

This customer information management system also facilitates us to systematic manage customer needs. Immediately inquiry helps us respond to customers in the first instance and improve customer satisfaction. For example, after the quantity and price are generated based on product specifications, we issue shipping order immediately to complete the sale in the fastest time possible.

Since CPT implemented this customer information management system to strictly control access to customer privacy and product information, we have not been fined or disciplined for any violations relating to privacy issues. CPT will continue to improve the customer information management system, with goals to completely eliminate leakage of customer privacy and product information and improve customer satisfaction. We aim to create a win-win partnership.

Customer relationship implementation direction

The company is fully aware of the complex properties and specifications and short product life cycles of medium- and small-sized panels. Product development speed, product quality, and mass production speed are therefore key factors in the acquisition of customer orders. In 2014, CPT merged the product planning and R&D units and established a Product Planning and Development Center. In 2015, R&D and product service personnel directly communicated with customers, which led to accelerated product and project development. CPT technical personnel initiated direct discussions, joint inspections, and modification of specifications in cooperation with the technical personnel on the customer side. The goal is a more rapid satisfaction of customer needs and expectations and accelerated development of products required by customers. The module and panel RFQ schedules have also been greatly shortened. Upon confirmation of specifications, products can be provided within 3~5 days and the service quality has been greatly increased. In the field of manufacturing, the quality management and manufacturing units on both sides of the Strait have been integrated and are managed in a unified manner by company HQ. CPT aims to obtain customer orders through organizational optimization, improved operational efficiency, meeting of customer needs, and increased satisfaction levels.

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CPT won the “24th Taiwan Excellence Award”To enhance the image of Taiwanese products, the Ministry of Economic Affairs encourages businesses to improve R&D,

design, quality, and marketing with the goal of increasing international competitiveness. The Ministry has created Taiwan Excellence Awards. All prize-winning products must conform to current trends in the field of environmental protection and innovation. Since 2009, numerous products have been honored with Taiwan Excellence Awards. In 2015, the In-Vehicle Transparent Navigation Display (CLAA061LA) and the 7” tablet panel with embedded touch (TLAT070W111) were honored with awards at the 24th Taiwan Excellence Awards.

The feature of In-Vehicle Transparent Navigation Display is: No PI (Polyimide) conversion and rubbing processes and no polarizers on the panel. This greatly decreases process times, reduces costs, and fully conforms to relevant demands in the field of environmental protection and energy conservation. Besides, utilization of transparent back light technologies helps enhance display quality and break through usage environment limitations.

“In-Vehicle Transparent Navigation Displays” provide drivers with clear and abundant in-vehicle information, allowing a simultaneous focus on actual conditions ahead of the vehicle. Compared to traditional vehicle-mounted information systems that force drivers to change their viewing angle to obtain the desired information, the CPT In-Vehicle Transparent Navigation Display meet driving needs in a safe and rapid manner.

In recent years, Touch in Cell (TiC) has turned into the ultimate technology goal for panel manufacturers wishing to access the touch product market. TiC panel has the dual advantage, one is greater competitiveness by optimal integration of display and touch panel, the other is low cost and lightness represent the main considerations of next generation touch technologies. The High Integration Touch in Cell Slim Module has turned into the main focus of development in the field of new TiC modules.

This product employs a panel architecture with integrated display and touch functions. High integration ensures higher cost efficiency and competitive advantages in the field of size and weight for panel manufacturers. By utilizing TDDI IC (Touch Display Driver Integration) for development and design, cost reduction, simplified panel architecture, and reduction of module size can be achieved in module architecture. In addition, panel slimness is easier to achieve with this product since follow-up process filming is not required). The final goal lies in the development of High Integration Touch in Cell Slim Modules.

In-Vehicle Transparent Navigation Display 7” tablet panel with embedded touch (TLAT070W111)

24th Taiwan Excellence Awards

Product Features Product Features

Features and specifications

Feature:Polarizer FreeTransparent BacklightLow Power ConsumptionEnvironment FriendlyInnovative Product

Resolution:800(RGB) × 480Display Area:136.2mm × 72mmTransmittance:>10%

Innovative Materials and Technology R&DCPT continues to implement green product design and product carbon reduction plans and activities.

CPT work with suppliers to carry out GHG inventory, including on-site surveys and verification, disclose data of resource consumption in every manufacturing stage of LCD products, completed product carbon and water footprint certification and implemented suppliers carbon reduction and water conservation activities throughout the product life cycle from raw material, manufacturing, distribution to customers. CPT will continue to push forward carbon reduction and water-saving activities and develop effective energy-saving and water-saving strategies to enhance the overall energy and water resources efficiency. CPT expects that through a series of green product planning and investment activities and cooperation with upstream and downstream industries, we will create a green future and move toward the goals of green business development, high profitability and harmonious coexistence with the environment.

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CPT formed a strategic alliance with FlexEnable to achieve a new milestone in the development of flexible AMOLED displays

CPT cooperates with ITRI in the creation of new business opportunities

Better Skill for Smart and Future life

The first full-color flexible OTFT AMOLED display in the world was developed by CPT through technical cooperation with FlexEnable, a leading manufacturer of flexible organic electronics. This is the first full-color flexible AMOLED display that employs OTFT (Organic TFT)driver technology. Main technologies include the superior FlexEnable OTFT low-temperature processes and CPT OLED technology. These technologies are applied for the production of ultra-slim display with a thickness of a mere 0.125mm. OTFT low-temperature processes are characterized by comparatively higher material selectivity and usage rates without the necessity of high temperature furnaces. These processes allow the creation of flexible AMOLED displays with high cost competitiveness. In addition, FlexEnable is only company in the world that has the required capabilities and concrete achievements in the field of mass production of flexible displays through Rollto-Sheet processes at currently. Breakthroughs in the field of quality and costs will become possible through the synthesis of Roll-to-Sheet processes and CPT OLED technology for the production of flexible AMOLED display.

CPT signed a Flexible AMOLED Technology Transfer Agreement with the Industrial Technology Research Institute (ITRI). ITRI director Zhong-Ming Liu pointed out that he expects the transfer of this key technology, a result of Technology Development Programs for corporations sponsored by the Technology Division of the Ministry of Economic Affairs, will propel the creation of added value and new business opportunities in the domestic display industry.

President Sheng-Chang Lin also stated that the three crucial technologies in the field of flexible displays transferred through this agreement, namely flexible substrate and gas barriers, flexible touch sensors, and flexible display touch panels are results of Technology Development Programs sponsored by the MoEA Technology Division. These technologies allow the R&D of flexible AMOLED panels combined with mass production process technologies through a synthesis with the original oxide thin-film transistor technologies of CPT.

Due to the vigorous development of smart handheld devices, slimness, thinness, impact resistance, and flexibility have already turned into the mainstream. Flexible AMOLED panels meet all these criteria. Cooperation of CPT and ITRI in the field of key flexible AMOLED technology signals the ushering in of a new era of “flexibility” in the Taiwanese display industry.

CPT participated in the International Touch Panel and Optical Film Exhibition 2015 from August 26 to 28. The venue was divided into four areas based on technology application categories: Innovation, Applications, Smartization, and OLED Lighting. New technologies areas occupied a central role in this show. Several technologies and products were unveiled for the first time during this event. CPT demonstrated its solid R&D capabilities honed over many years.

▲ 2015 Taipei Touch Display and Photonics Show-Grand Opening

▲ 2015 Taipei Touch Display and Photonics Show-CEO of CPT, Mr. Sheng-Chang Lin interviewed- CEO introduced the products, functions and CPT’s future development plans to the press.

▲ Chairman Mr. Wei-Shan Lin describes product features to Ms. Wei-Min Bai, the Executive Vice Chairman of the China Video Industry Association during the 2015 Taipei Touch Optoelectronics Show

▲ Chairman of CPT, Mr. Wei-Shan Lin took a photo with the CPT team at the exhibition site.

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Voice of the Stakeholders

CPT is a senior panel supplier with rich experience accumulated over many years from the early CRT TVs to modern display screens. The hiring of younger sales personnel ensures a more rapid response to the changes demanded by our company and greater support in the field of delivery times and quantities. Customer service units can also rely on accumulated experience for the rapid and accurate resolution of quality issues. In other words, accurate handling and excellent collaboration is ensured in the areas of business and technology. The only area that needs improvement is quality. CPT aims to effectively decrease quality issues. After all, CPT is one of our most supportive suppliers. If impacts generated by subpar quality can be reduced, CPT will be capable of providing even stronger support for our company. We expect to strengthen our cooperation with CPT in the future and maintain this positive partnership.

Customer: Startek Technology Co., Ltd.

General Manager

Shao-Qi Hong

CPT has always been an excellent and extremely supportive supplier of this company. CPT is one of the companies with the longest history in the display industry. From the early days of CRT displays to the strategic transformation of the current stage, the company has gradually evolved into a small- and medium-sized panel manufacturer. Our company has always maintained a friendly relationship with CPT. The only problem is the unstable quality of the CPT module products. Resolution reports often indicate a connection to the quality of the supplied products. Despite the fact that CPT handles quality issues in a timely manner, advance prevention would guarantee higher competitiveness. We are therefore looking forward to an even better relationship with CPT in the future with excellent communication and interactions.

Customer: JTOUCH Corporation

Procurement Division Head

Shi-Ming Wang

CPT is a designated supplier of major brand clients in the field of interface optoelectronics and has rich experience in the display industry. The company handles delivery time and quantity related issues and changing demands in a rapid and efficient manner and shows a high level of dedication and accountability in the field of after-sales services. However, quality disputes frequently arise. Due to the fact that modules account for the majority of cooperation projects with CPT, the main components often have quality issues (mostly FPC). However, CPT units are extremely supportive and help solve encountered problems in a rapid and responsible manner. FAE and CS also communicate and handle matters in a professional and active manner. Due to the frequently changing demands of smartphone and small-sized panel cooperation projects and sudden increases or decreases in accordance with market conditions, CPT is capable of coordination and provision of assistance for changes of delivery times and output dimensions. Our cooperation with CPT is always a delightful experience in the fields of technology and business. We expect that a larger number of new projects in the future will lead to more experiences and opportunities for fruitful cooperation.

Customer: JTOUCH Corporation

Procurement manager

Li-Qi Lin

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CPT product package reduction targets 2013~2015 (delivery methods in 2012 are utilized as the base for packaging reduction methods)

Product packaging weight reduction method: reducing the weight of packaging materials

• Tray thickness: 0.8mm~0.7mm or 0.6mm• Electricity-conducting corrugated sheets: Still used for products

requiring vacuum packaging and discontinued use for products not requiring vacuum packaging

• EPE buffer packaging material thickness: 20mm~10mm• Static bag thickness: Not changed to 0.08mm due to initial trial

operations of a small number of new machine types in Taiwan Adoption of 0.08mm once mass production is initiated overseas• Desiccant amount reduced from 8 to 4 sachets

20% weight reduction per model: The total weight reduction effectiveness for each model must reach 20% in the year.(The weight reduction effectiveness is calculated by all models set for improvement in the year.)Total delivery ratios of improved machinery must reach at least 20% of the total deliveries of the respective year.

Accumulated weight reduction effects through packaging machinery improvements reached 19.54% in 2015. The target of a 20% weight reduction through improved machinery in 2015 has therefore not been met. The original goal settings and definition not only included improved machinery in 2015 but also in 2013 and 2014. Effects fail to reach 20% if the sole focus is improved machinery in 2015.

Packaging CD effects in 2015; annual effect of 81.6 million

Product package weight reduction effects in 2015

EPE(445X335X20mm)

Velcro fasteners

anti-static vacuum bagThickness 0.1mm

194mm 470mm360mm

EPE(445X335X20mm)

Carton box

Corrugated PP plate (445X335X5mm)

Corrugated PP plate (445X335X5mm)

Tray with no mounted panels (for protection purposes)

Tray with mounted panels, material thickness of 0.8mm, one panel per cavity

Before improvementEPE(445X335X10mm)

Velcro fasteners

anti-static vacuum bagThickness 0.08mm

194mm 470mm360mm

EPE(445X335X10mm)

Carton box

Tray with no mounted panels (for protection purposes)

Tray with mounted panels, material thickness of 0.6 mm, one panel per cavity

After improvement

Packaging weight reduction results

1000

January February March April May June July August September October November December

800

600

400

200

0

144 144 226

82

318

92

397

79

486

89

579

93

638

59

585

47

722

37

766

34

791

35

816

25

Monthly accumulated CD amounts Single-month CD

25.0

January February March April May June July August September October November December

20.0

15.0

10.0

5.0

0.0

3.5 3.51.9

5.4

2.2

7.6

2.1

9.7

2.0

11.7

2.2

13.9

1.3

15.2

1.1

16.2

0.8

17.1

1.1

18.1

0.9

19.0

0.7

19.7Carbon reduction in the respective month Accumulated carbon reduction in the respective year

Reduced resource use and recycling-friendly design

In the field of packaging design, CPT embraces a philosophy of reduction, reuse, recycling, and recovery. These green design concepts provide customers with safety and protection in the field of products and help achieve the goals of environmental protection and carbon reduction as well as an efficient use of energy resources. In addition, these concepts lead to storage and transportation cost savings, which is conducive to green logistics management.Recycling and reuse of packaging materialsCPT packaging materials are mainly divided into two types: packaging of products purchased by customers and packaging of materials and semi-finished products delivered and transported between plants. 1. Packaging of customer purchases is recycled and reused in plants on a regular basis in coordination with customers through sales personnel since customers are unable to guarantee timely recycling.2. Packaging of materials and semi-finished products delivered and transported between plants must be fully recycled. The recycling ratio is currently 100%. Damaged items are recycled and processed by qualified waste resource recycling businesses. Recycling and reuse of materials in coordination with suppliers. Non-recycled materials are assessed and used creatively inside plants. Packaging materials are currently used as delivery pallets, paper boxes, pallets, and partitions.

2015 Vehicle inspection efficiency indicators for all models

The sales ratio of packaging produced by improved machinery reached 26.11% in 2015. The target of a weight reduction of total deliveries by 20% in 2015 has been met.

12582

21622 32418

9113

29.90% 28.75% 27.74% 26.68% 26.25% 26.11%

11557 14649 17803 19830 22728 23544 2462821434

4240850848

58576

66150 7454681927

8824393831

97336120000

100000

80000

60000

40000

20000

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

0

Accumulated sales numbers of improved machinery

Accumulated monthly sales numbers (PCS)

4032 6775

25417

Monthly sales numbers of improved machinery in proportion to total sales numbers (actual ratio)

27.25%28.11%31.33%

32.05%28.81% 30.39%

January February March April May June July August September October November December

Sales and delivery ratio of improved machinery in 2015

2015 CD effects for all models

2015 carbon reduction effects for all models

18.46%

25%

20%

15%

10%

5%

0%

18.57% 18.84% 19.07% 19.17% 19.32% 19.36% 19.47% 19.52% 19.54%18.25%18.08%

January February March April May June July August September October November December

In 2015, total carbon reductions through packaging weight reduction amounted to 19.7 tons

Carbon reduction effects=ΣWeight reduction (tons) of paper materials used by different machine types* 242 KG/1000 +ΣCarbon reduction generated by different machine types Note: A decrease of utilized paper amounts by 1 ton leads to a carbon reduction effect of 242 KG (source: Low Carbon Sustainable Information System http://lcss.epa.gov.tw/LcssViewPage/Responsive/InfoDetail.aspx?info=news&Id=EA0D1CA01BBE85A557C65FD6BD9A25D6)

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Resource Recycling and ReuseThe ideal methods to decrease the environmental impact of waste liquids generated during production

processes are source reduction and waste reuse. CPT actively searches for methods to reuse waste liquids generated in LCD panel production processes in cooperation with manufacturers and commissions qualified businesses accredited by EPA to process certain liquids. The remaining waste liquids are discharged upon treatment in CPT wastewater treatment systems. Recyclable and reusable chemical agents such as strippers, photoresist diluents, chromium and aluminum etchants, NMP, and hydrofluoric acid are recycled and converted to industry grade or electronic grade liquids by qualified treatment agencies accredited by EPA and commissioned by original suppliers before being reused for TFT-LCD processes inside plants to fulfill the commitment to resource recycling and reuse.

In 2014, CPT focused on source reduction in the field of process chemicals and the optimization of the operational parameters of machines to reduce the waste of liquid chemicals. CPT also continues to research and develop low-hazard chemicals as substitutes. Waste generated at the end of production processes is thereby reduced. These concrete practices and optimized actions in the field of environmental protection generate a win-win situation of reduced costs and environmental protection. In 2015, CPT will continue to actively search for recycling and reuse methods in cooperation with manufacturers to maintain a waste liquid recycling ratio of at least 90%.

Analysis of waste liquid generation in all plant areas in Taiwan (unit: tons)

TFT-LCD Process and Operation Management Improvement Plans and Estimated Benefits in 2015

Year 2011 2012 2013 2014 2015

Total amount 14,969.10 13,856.17 14,060.77 13,820.75 12,316.21

Waste solvents 5,697.00 1,335.62 1,486.58 1,167.06 1,425.14

Waste solvents (waste acid/alkaline) 159.20 739.15 377.32 527.58 497.34

Waste chromium etchant (must be treated) 1,839.89 1,838.85 2,278.05 2,309.59 2,103.34

Waste ferric chloride (must be treated) 73.38 0.00 0.00 0.00 0.00

Waste organic solvents (must be treated) 12.06 0.00 0.00 0.00 0.00

Waste PGMEA 2,696.01 2,486.14 2,670.33 3,004.84 2,772.66

Waste CF photoresist (must be treated) 0.00 0.00 0.00 0.00 0.00

Waste Cr-etchant 419.90 247.78 0.00 0.00 5.26

Waste acid 1,289.76 966.34 1,019.56 494.88 0.00

Waste alkaline 601.08 5,492.73 5,732.51 5,839.06 4,961.60

Waste liquids requiring treatment 1,998.80 719.74 466.76 472.78 548.97

Waste oil 177.08 29.82 29.66 4.96 1.90

Total amount of recycled liquid waste 12,583.62 13,136.43 13,594.01 13,248.14 11,767.24

Total amount of treated liquid waste 2,385.48 719.74 466.76 572.61 548.97

Liquid waste recycling ratio 84.06% 94.81% 96.68% 95.86% 95.54%

Note: CPT affiliated companies in China are module assembly plants; no significant volume of solvents or chemicals were used and therefore the statistics are not included.

Plants Plan title Effectiveness (estimated)

Yangmei Plant (Y)

Extension of the service life of chemical agents used for developing machinesIn line with modifications of the 4R developing machine In-C/V, it has been tested to extend the intervals between machine tank chemical agent exchanges to achieve the dual effect of performance enhancement and chemical agent conservation and ensure optimal results after modification.

Volume of chemicals used: 212.364 tons/yearCost reduction of NT$ 45,658/year

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CPT sponsors the NCTU Startup Lab to encourage innovative and successful entrepreneurship

Knowledge Iron Man CompetitionSharing event poster

The CPT Knowledge Management Office (KMO) organized the 2nd event titled “Knowledge Iron Man Group Competition” to strengthen the innovative corporate culture representing CPT's heritage and to encourage innovation in the study and growth dimension of the 10 major work targets for 2015. The event features proposals for innovation and improvement and thematic knowledge documents. This event encourages passing on and arouses innovative energies. All participants join hands in an effort to create, transform, preserve, transmit, and utilize corporate wisdom and enables supervisors and co-workers to unleash their potential in an atmosphere of friendly competition through bold cross-unit cooperation and learning with the goal of setting new benchmarks and paragons.

Sharing of experiences by Precision Machinery Plant representativesThe above achievements were presented in the sharing party. A total of 250 managers and employees

joined the party to share the precious achievements. CEO participated in the event in person, bringing the participating teams his support and encouragement, as well as the announcement to raise the prize money for the competition in the next year. This sharing event continues to promote a corporate culture characterized by creative thinking, teamwork, and sharing. The goal is to involve more CPT employees in the passing on of knowledge documents and proposal of innovations to overcome barriers between departments and jointly accomplish great achievements and results. The prize winners shared their works and insights. 3M Yangmei R&D Division Manager, Sheng-Long Yang, a paragon of innovation, was invited to give the keynote speech “3M and innovative corporate culture.” Looking ahead to 2016, KMO will continue to encourage CPT supervisors and colleagues to pass on insights and innovations in high quantity and quality through the impetus of KPIs and group competition.

Group award ceremonyThe knowledge document participation rate was 39% in 2015 (total of 1245 participants)A total

of 44 proposals were finally accepted upon a rigorous selection process. Also, a total of 40 entries were received for the Subject-based Knowledge Document Competition. After training and progress checking, 35 documents were officially entered into the competition before deadline.13 of 25 units completed the contest for a completion rate of 52%. These units were recognized at the “Innovation and Improvement Result Sharing Event” organized on November 24, 2015. The eight top ranked units received monetary awards as a form of encouragement.

Forward-looking Innovative Actions

CPT was invited to participate in the inauguration ceremony of the NCTU Startup Lab organized in the NCTU CPT Building on January 28, 2015. CPT Chairman Mr. Wei-Shan Lin and NCTU President Ms. Yan-Hua Wu jointly attended this event. The NCTU Startup Lab was established to provide comprehensive startup planning services, encourage a spirit of innovation and entrepreneurship among university students, and train aspiring entrepreneurs.

CPT has made a long-term commitment to actively participate and sponsor various NCTU research programs. A large number of photoelectricity professionals of international caliber have been trained through close mutual cooperation and impressive R&D results have been achieved through industry-academia collaboration. In 2006, CPT constructed and donated the NCTU CPT Building, named after the university and company, with the goal of providing NCTU students and faculty with an optimized learning and research environment. CPT was heartened by the news that NCTU planned to establish a Startup Lab and redesigned and redecorated a space of roughly 1000 sq m on the 7th floor of the building especially for the lab. Innovative and passionate on-campus entrepreneurship groups may apply for the use of these facilities. At the same time, innovative entrepreneurship related activities are organized to arouse a spirit of innovation and train innovative entrepreneurs with the ultimate goal of generating multiple development visions for the Taiwanese industry.

Even more opportunities for strategic cooperation between CPT and NCTU will present themselves in the future. In addition to annual industry-academia collaboration projects, the startup lab platform will be utilized in various ways to form independent startup development groups and seek for investment opportunities in the field of new startups. The goal lies in the integration of resources of academic and industry circles through mutual exchanges and the transformation of entrepreneurial energy into actual economic effects.

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Creation of New Values in the field of Sophisticated Agriculture

The main focus of plant factories lies in the planting of crops and water usage. Plant factories currently available on the market all employ water culture planting methods no matter whether they rely on artificial lighting or sunlight. They therefore consume large quantities of water and generate large amounts of sewage. Due to the absence of relevant laws regulating the discharge of sewage generated by plant factories, it is mostly directly discharged into rivers. Sewage generated by plant factories is rich in nutrient salts. If this sewage is discharged into rivers untreated, it will contribute to the eutrophication of rivers and lead to the death of rivers and a further depletion and contamination of freshwater resources.

On the other hand, the establishment and operation of plant factories that utilize water culture to grow vegetables is difficult in many regions that lack water resources. The circulation and filtration system developed by CPT allows the reuse of around 60% of utilized water resources through four filtration processes. This is not only eco-friendly but also increases overall revenue and represents the product with the greatest potential in the next stage of plant factories. In 2015, CPT plant factories were capable of recycling around 60% of the generated sewage and reuse it for water cultivation through self-developed planting techniques of leafy vegetables in combination with the circulation and filtration system developed by CPT. Algae generated in the sewage treatment process are utilized for aquaculture and chlorophyll extraction. On top of that, through an activated sludge system, it should be possible to achieve the goal of zero sewage discharge on the experimental plant shelves.

CPT will continue to integrate the photoelectric and biologic technologies for innovative development of environmental protection and high-quality crops. We aim to create a complete industrial chain for the agricultural industry and do our part for green development in Taiwan.

a. Experiments and tests are currently carried out for selected functional bacteria in the filtration system that are capable of decomposing large amounts of elements causing environmental pollution such as nitrogen, phosphorous, and potassium. Environmental control technologies are established to enhance the decomposition results through addition of nutrients, bacterial regulation, and management techniques.

b. The selection of algae is based on growth speed and economic value. Chlorophyll content of algae is increased through the speed of absorption of various nutrient components. This turns algae into functional health food, generating additional income for plant factories.

(1) Key technologies:

10.1” HD / HFFS/ TOC panels

12.3” 1920x720 FFS/Automotive MOP panel (123FBA1)

(2) Key technology processes:

Examples of green product innovation

This model utilizes FFS wide viewing angle technology to greatly improve LCD viewing angles. This is the first FFS Instrument Cluster MOP product developed by CPT and is conducive to the development of technologies and accumulation of experiences in the field of FFS vehicle-mounted Instrument Cluster products. Instrument Clusters are characterized by high reliability and quality that allows CPT to demonstrate its capabilities in the field of technology and quality.

Product innovation

Integration with high-power LED effectively reduces the number of LED granules needed. LED light source consumes less power.

Mercury-free product with LED light source

Green product properties

Mercury-free

Energy Saving

Narrow border frame and TOC (Dual Layers) panel technologies are utilized by the G6 plant through the input of 0.45mm glass combined with ATMEL touch IC and Corning Gorilla tempered glass to greatly increase added value.

Product innovation

DBEF enhances the luminous efficiency and allows the reduction of the number of LED chips to 24.

Energy Saving

The original glass material (0.5mm) was replaced with thin glass of a thickness of 0.45mm. After the adoption of a TOC design, sensors were no longer necessary and the thickness of the glass was reduced. luminum back plates were adopted for back lighting to achieve weight reduction effects. Overall thickness was reduced through the adoption of 0.45mm glass combined with TOC

Mercury-free

Green product propertiesMercury-free

Lighter

Slimmer

101WR61: The first mass-produced +10” On-Cell Touch product worldwide. The product was successfully adopted for ASUS Zenpad with CPT as the sole supplier. Close to 1 million units (1KKpcs) have been manufactured as of June 2015.101WR62: Following the experience with 101WR61, the follow-up product was successfully adopted by the Japanese Softbank Group for the 2nd generation Pepper robot with CPT as the sole supplier. Mass production was officially initiated in February 2016.

Nutrient treatment

Algae application

Filtration system

Green algae

Plant

Culture Solution

Water

12001250130013501400145015001550160016501700

1 2 5 6 7 8 9 12 13 14 15 16 19 20 21 22 23 day

Characteristic and StrategyPlant factory with zero dischargeRecycling and reuse of water resourcesSecond reuse of nutrient fluid

Conductivity Culture Solution A Culture Solution B