TECO Electric & Machinery Co., Ltd. Bases in Taiwan as a listed company. Products and service includes machinery systems, home appliance products, and engineering services. Number of employee is 2,274 in parent company and 11,936 worldwide. Financial performance as listed as followings:
in TWD K
This report includes: TECO 東元電機, TESEN 東勝電氣, TECO-Westinghouse 東元西屋, Taian Technology (Wuxi) 台科無錫, Wuxi TECO 無錫東元, TECO Electro Devices 東元精電, Qingdao TECO Precision 青島東元, Jiangxi TECO A/C 江西東成, Wuxi TECO Precision 無錫精密, Jiangxi TECO 江西東元, TECO Vietnam 越南東元 and Motovario Corp (Italy)，which totally covers 82.7% of total group consolidated revenue.
Direct economic value generated and distributed.
in TWD k
As (operating costs - employee salaries and benefits), see annual report, Consolidated income statement.
employee wages and benefits
Including salary expenses, remuneration, labor health insurance, pension, etc. Please refer to the annual report for additional information on the nature of expenses.
payments to providers of capital
Dividend NTD$ 1.5 in 2022
payments to government
As Income tax expense, see annual report, Consolidated income statement.
As sponsoring and donation to NGOs
Economic value retained
Growth of existing business
In Green Mechatronic Solution, sales of inverters and energy conservation solutions are expected to benefit from production of shale-oil, electrification of conveyance equipment and waste-heat recovery, sparked by various countries' carbon neutrality policy, including the U.S., which has pledged to reach the goal by 2050. Taiwan also aims to attain net zero emission by 2050, a goal expected to spur industrial investments in energy conservation, energy storage, and integrated smart system. With motor being an energy-intensive equipment, TECO has been offering end customers with overall energy-saving and carbon-abatement renovation plan and feasible solutions, an effort which has made major inroads into the Taiwanese and Chinese markets, especially in high carbon-emission fields, especially in iron & steel, papermaking and petrochemical industry. In the U.S. market, in addition to electrification of step-up stations for oil & gas pipelines and cogeneration systems for iron & steel and petrochemical industry, the company has also a firm grip on business opportunities related to E-Skid, green transportation, and hydrogen energy to boost revenue.
In Intelligence Energy, given popularity of 5G/big data/cloud-end services, TECO, backed by its outstanding technology, expects to continue enjoying robust growth in IDC engineering business, both on the domestic front and abroad, aiming to double orders from new customers/markets in 2023, on top of its total order intake exceeding 170 MW. In 2023, the company plans to further tap engineering opportunities of offshore substations for offshore wind farm, as well as related demands for gas insulated switchgear (GIS), spare generators, and offshore and onshore "E-house" solutions, the latest in collaboration with ABB. The company also expects to score robust growth in order intake and revenue related to renewable energy and energy storage, as the Taiwanese aims to boost the share of renewable energy in power generation to 20% by 2025, up from 2022's 8.6%, the latter representing 36% growth.
Air and Intelligent Life business group will continue focusing on provision of full-field smart air conditioning and energy management, contributing to the materialization of new life of ESG carbon-neutrality, and rollout of variable-frequency freezers for use by food factory and home-delivery low-temperature logistics plants. In technology strategy, it will provide AI freezing air-conditioning energy-conserving system, upgrade food safety and flexible cooling-power maneuvering with refrigerant quantum technology, and roll out changeable multi-temperature layer refrigerated chamber, in order to bolster revenue growth.
Strategic development plan
In line with its vision of "energy conservation, emission reduction, intelligence, and automation," the company's development strategy will center on the three major axes of green-energy creation and storage, foray into potential markets connected with the government's New Southbound Policy, and establishment of North American and Indian supply chains, to inject fresh momentum for corporate growth.
Energy creation and storage: Develop technology for producing core equipment of PV power devices and energy storage facilities, as a prelude to solar-plus-storage, then combine of energy management system and central-control information exchange platform, eventually develop into a comprehensive virtual green-power operator.
New southbound market: Focus on promotion of optimized product mix covering power, mining, e-vehicle, and HVAC, in addition to deployment in local sales services and supply chain.
Establishment of North American and Indian supply chain: Plan to set up motor factories in India and Mexico in 2023, to augment delivery and cost competitiveness.
Meanwhile in strategic development of technology, the company plans to develop PCS (power conditioning system) and high-voltage charging technology, as an offshoot of medium-voltage inverter, in 2023.
TECO has established a long-term cumulative reward mechanism for high management above the manager level, and links the variable remuneration of managers with the ESG material topic of the year through Key Performance Indicators (KPI) KPI.
Senior Managerial Officer Remuneration
Manager remuneration is divided into fixed and variable pay. The latter is directly linked to performance appraisal results based on key performance indicators (KPI). Each business department establishes the business department key performance indicators according to the annual development focus of TECO. KPIs are imposed from top to bottom encompassing all units at every level.
60% of KPIs are linked to financial indicators (such as revenue, operating profit, current profit and loss, total asset turnover, return on assets, return on invested capital, achievement of profit targets, etc..); 40% are strategic foresight related to short, medium and long-term planning and implementation (such as Strategy formulation, ESG and new business layout development, organizational management and talent training).
Long-Term Performance Reward Mechanism
Establish [Trust Shareholding] Part of employee remuneration is given in the form of a shareholding trust, allowing employee to subscribe for shares at a preferential price subsidized by the company, which can be reclaimed after two years of deferred.
In the salary structure, TECO also provides long-term incentive bonuses. However, unlike the deferred method of stocks or options, TECO’s long-term incentive bonus is directly linked to the total shareholder return (TSR), linking corporate governance performance with the CEO’s long-term incentive bonus. TSR includd the total capital gains and dividend income of TECO stocks for three years.