TECO Holds 2025 Annual General Shareholders’ Meeting

 TECO Holds 2025 Annual General Shareholders’ Meeting: Advancing as a Key Driver of Electrification and Green Energy Toward a Sustainable Future

TECO Electric & Machinery Co., Ltd. (Stock Code: 1504) held its 2025 Annual General Shareholders’ Meeting today (June 3), during which the 2024 financial statements and earnings distribution proposal were approved. The Board proposed a cash dividend of NT$2.2 per share, reflecting a payout ratio of 80% and reaffirming TECO’s commitment to delivering stable returns to its shareholders. Chairman Morris Li emphasized that, in response to ongoing global economic and market uncertainties, TECO remains firmly committed to its dual-core strategy of innovation and sustainability. The company continues to strengthen its efforts in energy conservation and carbon reduction, steadily advancing toward its vision of becoming the key driver in realizing electrification, intelligent, and green energy.

Solid Financials and Consistent Dividend Policy
In 2024, TECO reported consolidated revenue of NT$55.23 billion, representing a year-over-year decline of approximately 7%. Despite the drop in revenue, enhanced gross margins and improved operational efficiency helped the company achieve earnings per share (EPS) of NT$2.73—only a slight decrease of NT$0.03 from the previous year. The revenue decline was primarily due to weakened demand in the Green Mechatronic Solution business in North American and European markets, as well as a high comparison base in the Intelligence Energy business resulting from prior project revenue recognition. Nevertheless, TECO’s gross margin rose by 0.4%, and its operating margin increased by 0.1%, reflecting the company’s continued success in product portfolio optimization and cost control.

Focusing on Core Competencies and High-Potential Business Development

TECO has concentrated its strategy on "high-margin products," "high-potential business areas," and "future-oriented technologies" since 2024, resulting in significant transformation progress. On the electrification front, TECO successfully acquired Shenchang Electric, accelerating its entry into the global transformer market and expanding production capacity in Taiwan. The acquisition of EVK Motor enhanced the company’s capabilities in electric vehicle e-axle systems; while the acquisition of Malaysia’s NCL Energy marks an active push into the Southeast Asian data center MEP (mechanical, electrical, and plumbing) engineering market.

In EV powertrain systems, TECO secured an order for 600 sets of E-bus powertrain systems in India and delivered 700 sets in Taiwan. Additionally, the company completed a fast-charging station production line in North America, aligning with the Buy-in-USA policy.

In green energy, TECO continues to lead in wind power and energy storage engineering. Its onshore substations for offshore wind power projects have reached a total capacity of 2.5GW. The company also won a 400MVA STATCOM project from Taipower, becoming a key player in Taiwan’s Grid Resilience Strengthening Construction Plan. In the hydrogen sector, TECO secured nearly USD 4 million in hydrogen generation equipment orders from North America in 2024.

Sustainability Recognized by Global ESG Benchmarks
TECO continued to advance its sustainability and social responsibility initiatives. In 2024, it was selected for the Dow Jones Emerging Markets Best-in-Class Index for the fifth consecutive year and ranked in the top 1% globally in the 2025 S&P Sustainability Yearbook. TECO also received an AA rating from MSCI ESG Ratings. Domestically, the company earned the Taiwan Corporate Sustainability Award for the eleventh consecutive year and ranked in the top 5% for corporate governance nine times, demonstrating strong ESG performance recognized by global and local institutions.

Outlook for 2025: Strategic Revenue Growth Initiatives
Looking ahead to 2025, TECO will implement a strategic revenue growth plan to drive overall operations. Key initiatives include the launch of a new 1,000-ton chiller in Q3, aimed at meeting the energy-saving needs of large office buildings and factories. In the field of robotics, the first batch of joint modules for quadruped robots will be delivered, highlighting TECO's ambition to expand into the smart machinery and applications market.

Other strategic priorities include expanding into North American AI data center projects and the new energy sector, strengthening engineering and supply chain capabilities in Southeast Asia, capturing global opportunities in electric and unmanned vehicles, scaling up virtual power plant and electricity trading businesses, and promoting the ESCO platform to help customers achieve comprehensive energy savings.

With a more proactive approach to innovation and internationalization, TECO affirms that it will continue to advance toward a greener future and generate stable, long-term value for its shareholders.