Company Business Model, Products, and Production Capacity

Management Approach (MA) for Material Topic

Company Business Model, Products, and Production Capacity

FPCC's Business Items

FPCC is located at the upstream of the industrial chain; gasoline, diesel, and aviation fuel produced by oil refining plants are sold domestically and overseas; ethylene propylene, and butadiene produced by naphtha crackers are mainly supplied to downstream companies in the group; the co-generation plant's primary goal is to provide steady and adequate supply of electricity and steam to meet the needs of the Sixth Naphtha Cracker. For details on the Company's supply of main raw materials and main suppliers/customers, please refer to the contents disclosed in the Company's annual report for the shareholders' meeting (http://www.fpcc.com.tw/tw/ir/shareholders-meeting).

FPCC's production capacity and organizational scale in 2023

2023 Production volume

In terms of production volume, we maintained stable production throughout 2023, and refining volume increased 3.2% compared with 2022. For details, please refer to our website (http://www.fpcc.com.tw/) and the annual report disclosed at shareholders' meetings.

Main products and services

FPCC's main products and services include gasoline, diesel, and other petroleum products, ethylene, propylene, and other petrochemical products, and public utility fluids. For details on products and services, please refer to our website (http://www.fpcc.com.tw/) and the annual report disclosed at shareholders' meetings.

Assessment of the impact and hazard of products to customer health

All products of FPCC comply with the National Standards of the Republic of China (CNS), and passed the inspection of the Bureau of Standards, Metrology and Inspection. We strictly assess and manage products from raw materials until products are delivered. Please refer to the company website for related inspections and certification (http://www.fpcc.com.tw/tw/guarantee).

Quality certified products and services

We strive to provide high quality products and services. In oil products, we developed the new formula "95 Plus Lead-free Gasoline" through process improvement, as well as experiments and actual road tests conducted by an international engine laboratory. The new formula super diesel meets the standards for the highest level diesel used in Japan and Europe; food-grade white oil products 380N and 550N were certified by the JHOSPA; petrochemical products ethylene propylene, butadiene, IPM, PIPS, and DCPD obtained REACH Registration of Chemicals, which will aid product sales to the EU.

With regard to services, the Flow Calibration Laboratory at FPCC's Maintenance Center and the Gasoline and Diesel Engine Laboratory under the Refining Department both obtained the Chinese National Laboratory Accreditation (CNLA) certification, which certifies that the laboratories have technical capabilities and quality standards mutually recognized by international institutions. Once certified, test reports and calibration certificates issued by the laboratories can bear the certification symbol to prove applicable capabilities. For contents of products and services, please see the company website (http://www.fpcc.com.tw/).

Creative Thinking, Integrated Research and Development, Lower Risk

Individual facilities under FPCC are configured with their own process improvement department, where professional chemical engineering technicians are devoted to researching process improvements; they research and develop technologies to improve specific items so as to stabilize production, enhance the production volume, bring down costs, increase the production value, reduce energy consumption, and minimize pollution and emissions, among other goals to lower operating risks.

Operational Performance

FPCC's consolidated revenue was NT$712,576,194 thousand in 2023, down 16% compared to 2022. Consolidated net profit before tax was NT$24,693,679 thousand, up 45.5% compared to the previous year.