Ladies and Gentlemen,

We extend our sincere gratitude to all shareholders for your unwavering support of Accton throughout the past year. This report provides an overview of Accton’s business performance in 2024 and outlines our forward-looking plans for 2025.

I. Business Performance in Year 2024

(I)Overview and Results of the Business Plan Implementation
In 2024, the company’s consolidated revenue reached NT$110.425 billion, representing approximately 31.2% growth compared to the previous year. Consolidated net profit after tax was NT$12.00 billion, reflecting a year-over-year growth of about 34.5%. In terms of revenue contribution by product line, network switches accounted for 57% of total revenue, network application equipment contributed 36%, and network access equipment made up 4%.
Looking ahead, the company will continue to invest in core capabilities critical to the next-generation network infrastructure. We are also actively investing in adjacent markets, expanding our technological coverage into computing and storage in the AI era, and incubating long-term business growth.

(II)Budget Execution Status
Revenue and profitability for 2024 met the company’s internal budget targets.

(III)Research and Development Progress
2024 was a year of rapid growth and significant achievements. We repositioned ourselves as a technology-driven company that provides high-quality services, evolving beyond our traditional ODM model toward new service offerings and business models. In line with this strategy, we remain committed to high-quality technological and business innovation, maintaining our core leadership in Design for Manufacturing (DFM). Not only have we continued to launch industry-leading products, but our dedication to high quality has also earned us strong customer recognition and a leading position in the industry. Our fast-paced, high-quality technological iterations provide us and our customers with a competitive edge in quickly entering the market.
The company will continue investing in cutting-edge innovations and services to establish itself as a premier provider of high-end hardware and open-source network infrastructure. We are also expanding into computing and storage, exploring new technologies and business models to adapt to emerging market trends.

Key R&D Highlights for 2024:
1.The 51.2T switch and 800G optical interfaces saw fast adoption and continued growth, while the development of next generation 102T switches and 1.6T interconnect optical technology progressed.
2.We expanded production of high-density 100G/400G switches for Hyperscalers and general-purpose data centers, broadening our customer base and securing opportunities for next-generation switches.
3.Launched an industry-leading energy-efficient switch based on the patented VLC (Vertical Line Card) design.
4.Continued development of industry-leading AI switches, CXL (Compute Express Link) switches, and Smart Appliance solutions.
5.Ongoing innovation in AI training and inference solutions.
6.Continued collaboration with partners to develop industry-leading wireless technologies.
7.Sustained investments in foundational technologies, including power systems, fans, cooling, immersion cooling, signal integrity (SI), and power integrity (PI).
8.Strengthened smart manufacturing capabilities to support global expansion under the “Manufacturing as a Service” model.

II. Summary of Business Plans for Year 2025

(I)Business Strategy
In 2025, Accton will continue executing its existing strategy, leveraging its four key pillars: ODM services, JDM services, the Open Infrastructure Division, and strategic technology investments and partnerships. With a focus on rapid and continuous innovation, we aim to deliver high-quality network infrastructure products and services to our customers.
Additionally, we are actively exploring new business models and expanding beyond networking into AI computing-related technologies and products. By integrating open networking with computing platforms, we will offer innovative solutions for enterprises and telecom customers. These new offerings require us to broaden our perspective, foster strategic partnerships, and co-develop and market solutions to drive technology adoption.
In response to the rapidly changing global landscape, Accton is accelerating its efforts in global R&D, manufacturing, and supply chain optimization. By modernizing our technology and workforce, we aim to enhance our operational flexibility and resilience against global geopolitical uncertainties. Furthermore, we remain committed to driving open networking solutions from both hardware and software perspectives while integrating AI computing infrastructure as a comprehensive solution. This will enhance user experience, lower adoption barriers, and accelerate market deployment. To support our global expansion and innovation, we are actively recruiting top talent worldwide, further strengthening our overall capabilities.

(II)Manufacturing and Sales Strategy
In 2024, Accton demonstrated resilience and adaptability to the evolving macroeconomic and geopolitical landscape. Through direct investment in new manufacturing facilities and collaboration with overseas partners, we expanded our global manufacturing footprint. Our “Manufacturing-as-a-Service” model is becoming a key competitive advantage, enabling us to serve new markets efficiently.
For years, agility, flexibility, quality, and on-time delivery have been Accton’s core values. These principles will remain central to our investments in sales, manufacturing, and logistics in 2025.

Our diverse customer base spans multiple industries, providing a solid foundation to navigate market fluctuations. This includes network equipment providers, supercomputing system vendors, and network service providers, with rapid expansion into AI/machine learning infrastructure markets. While enterprises and telecom providers were major growth drivers in previous years—especially during the pandemic—AI has emerged as the new growth engine. This has helped offset slower growth in other sectors, mitigating revenue decline and positioning AI as a primary driver of future revenue expansion.
To capitalize on this momentum, Accton will continue its sales strategy by remaining open to emerging markets, actively investing in expanding sales coverage, and broadening its customer base.

III. Future Growth Strategy
Accton’s transformation from a traditional ODM to a leading technology and service provider highlights our commitment to growth and innovation. To maintain our competitive edge, we will continue investing in R&D, sales, manufacturing, supply chain optimization, strategic partnerships, technology alliances, and talent acquisition.

Brand development will be a key focus area. We aim to strengthen our recognition among global networking infrastructure solution providers and expand our brand presence. As networking, computing, and storage converge, and as AI/machine learning workloads surge, we see both opportunities and challenges. In response to rapid technological, market, and industry shifts, Accton will allocate more resources than ever before to deepen our competitive advantages and ensure continued leadership in the new era.

IV. Impact of External Competition, Legal Environment, and Overall Business Landscape
Given the macroeconomic and geopolitical challenges, we anticipate these difficulties will persist into 2025.

On one hand, we made significant progress in inventory management in 2024. However, the rapid growth of AI-driven demand is expected to create new supply chain pressures. With ongoing geopolitical tensions between the U.S. and China and a global trend toward deglobalization, Accton will continue accelerating its global manufacturing and supply chain strategies. Our goal is to enhance production flexibility and responsiveness to unpredictable demand fluctuations.

On the other hand, the explosive growth in AI-driven applications across multiple industries is driving sustained demand for networking, computing, and storage infrastructure. This presents Accton with tremendous market opportunities .

These achievements and strategic plans are the result of our long-term commitment to an open business mindset and forward-looking investments. We have consistently positioned ourselves ahead of industry demand curves, particularly in foundational technology and manufacturing. At Accton, we believe we have the right strategy and business agility to excel. Our strengths in engineering design, architectural innovation, and operational excellence will continue to drive our success.

Finally, we would like to express my gratitude to our customers and technology partners. we would also like to extend special thanks to all Accton employees for their hard work and dedication. Most importantly, we sincerely appreciate the continued support of our shareholders in Accton’s vision for growth.

Wishing you all good health and happiness.

Chairman: Huang, Kuo-Hsiu

President: Jun Shi