TECO Electric & Machinery : Shareholders' Meeting Approves NT$1.5 Cash Dividend Payout

TECO Shareholders' Meeting Approves NT$1.5 Cash Dividend Payout

2023/05/24

Image / TECO

The shareholders' meeting of TECO Electric & Machinery Co., Ltd. approves today (May 24) cash-dividend payout of NT$1.5 per share as distribution of 2022 earnings, higher than the previous year for the fifth year in a row.

Sophia Chiu, chairman, reported that in order to sustain revenue and earnings growth and maximize shareholders' interests, the management team under the guidance of the board of directors is focusing on the three major businesses of electromechanical system, smart energy, and smart life, on top of grasping the new global current of energy conservation/carbon abatement and industrial electrification, tapping emerging market in Southeast Asia, and energy transformation.

Chiu noted that with the 2022 revenue having increased by NT$13.1 billion from the 2020 level, the company expects to retain double-digit revenue growth in 2023, thereby attaining the goal of "NT$20 billion revenue growth in three years."

The company's revenue hit NT$58,315.2 billion in 2022, up 13% over 2021, thanks to 14.7% growth of electromechanical products and 43.1% growth of engineering works. 2022 operating income jumped 34.9%. After deducting difference in evaluated income/loss for financial products, 2022 dividend payout ratio reached 75%, 15% higher than the 2020 level, which will be raised further to 80%, according to the resolution of the board of directors.

In line with the carbon-neutrality policy and the target of net zero emission by 2050 of various countries around the world, TECO made major inroads into the green sector in 2022, including rollout of e-car powertrain T Power+, winning the honor of Taiwan Excellence Awards and the government's DMIT (smart e-bus program) qualification. The powertrain has been employed by four to five automakers in manufacturing e-cars, which will be also be exported. This year, TECO has pioneered the rollout of "SiC high-power direct-drive e-car driver," applicable to large e-cars, including 12 meter-long e-bus, e-truck, and e-engineering car.

To cope with electricity-rate hike and the rigid need of energy conservation, the company completed the development of several cutting-edge products, including "smart air-conditioning energy-conservation control system," featuring active management, capable of attaining up to 42% power saving. One model, coupled with smart IE5 cooling-water tower energy-conserving drive system, consists of permanent-magnet direct-drive motor and proprietary variable-frequency control driver, exhibiting TECO's core technological strength. In North America, the company unveiled mobile fabricated electric-equipment room E-Skid, offering one-stop carbon-free industrial electrification solution, which has landed substantial amount of orders.

In smart energy, in addition to the expansion of PV power and energy storage systems, the company will spared no effort in developing related key components and parts, such as power adjustment system PCS, giving the company strong edge in the energy-storage and power grid markets.

The company's achievements in sustainability was acknowledged by various honors in 2022, including inclusion in DJSI Emerging Markets Index for the third year in a row, coverage by 2023 Sustainability Yearbook of S&P Global for the third straight year, and granting of AA rating, up from previous A rating, on top 15% list among global peers, in the latest ESG (environmental, social, governance) evaluation by Morgan Stanley Capital International (MSCI). TECO has been implementing the "50% emission reduction in 10 years" program, aiming to attain 50% emission target by 2030, in line with the corporate vision of "energy conservation, emission reduction, intelligence, and automation," thereby becoming an international sustainability corporate paradigm.