The raging COVID-19 pandemic has brought direct health risks to the Company's employees. In order to prevent the significant impact of the COVID-19 pandemic on the Company, the pandemic prevention task force established by the top management has formulated and implemented the COVID-19 pandemic prevention plan, pandemic prevention measures to respond to COVID-19. The pandemic prevention task force is responsible for cooperating with various inspections, filling in records, grasping the changes of the pandemic situation, pandemic prevention publicity, preparation of pandemic prevention materials, health management and personnel health monitoring, pandemic disease reporting, safety and health hazards identification and risk assessment, and pandemic prevention response preparation. The applicable objects of pandemic prevention measures include: all employees of Excellence Optoelectronics (including foreign migrant workers), contractors, customers and personnel of the Company's overseas units, etc. In 2021, the Company's employees will not have any confirmed cases.

The Company will announce the latest pandemic prevention measures from time to time, and hold the "Pandemic prevention task force meeting by roll initiation for emergency response drills for infectious disease prevention and control" to avoid the spread of COVID-19 in the factory, and to conduct safety and health hazards identification and risk assessment, and continue employee health tracking management. Excellence Optoelectronics actively cooperates with the alert or pandemic prevention policies announced by the CDC to protect not only employees but also their families and residents in the surrounding communities. Information released by CDChttps://www.cdc.gov.tw

Looking around the global market business opportunities, Excellence Optoelectronics has obtained the certification of the world's key automotive lighting suppliers, and has partners in Germany, the United States, Taiwan, China and other places. In the past few years, the Company's revenue has grown by more than 25%. However, since the global outbreak of the COVID-19 pandemic, the global automotive industry, from production to consumption, has encountered an unprecedented crisis in history. In 2021, the continuous pandemic causing the global port congestion and transportation chain disruptions, and the shortage of automotive chips and electronic components resulted in major car manufacturers to reduce production. The Company's shipments were lower than expected. Due to the appreciation of the New Taiwan dollar exchange rate, foreign exchange losses resulted in a decrease in revenue and gross profit. In addition, rising material prices and rising labor costs are all unfavorable factors in the overall environment. However, the Company has taken various measures to face the challenges, such as reducing the cost of purchasing materials and saving costs, and continuously training employees, strengthening various management, and paying attention to market trends at any time to respond to future changes in the industry and the overall economic environment to minimize the impact of various unfavorable factors.

Looking forward to the post-pandemic era in 2022, the chip supply issue will be gradually improved, and the electrification process of automobiles exceeds expectations. The supply chain of auto parts and components is showing a recovery trend, and the global auto market is expected to recover quickly. Excellence Optoelectronics will continue to work closely with long-term strategic partners and newly developed important customers to become one of the most important professional suppliers of LED auto light components and modules in the world.