Message from the Chairman

Message from the Chairman

After three years, the world finally witnessed the long-awaited end of the pandemic. However, the war between Russia and Ukraine erupted in another part of the world, ringing alarms for peace, energy independence, and supply chains. Moreover, inflation has not shown signs of easing. Although the world saw a glimmer of light amidst the chaos in 2022, D-Link has written a new page in both operational performance and sustainable development with its consistent and
steady business operations.

In terms of operating performance, D-Link’s annual revenue in 2022 was NT$17.078 billion, up 10% annually, and operating net profit grew 225%, a four-year record high due to its well-structured global market positioning. In terms of sustainable development, D-Link is taking a back-to-basics approach. By examining international sustainable development trends and assessing available resources and future potential, the company has defined its sustainable vision as “Leading Smart Living, Creating Sustainable Value,” with D (Diversity), L (Leverage), I (Integrity), N (Net-zero), and K (Knowledge) as its connotations. We will combine these concepts with the four core spirits and seven sustainability management capabilities, and further set and manage strategic goals to achieve our vision of sustainability step by step.

I sincerely hope to enable the hands of technologists, holding the key capabilities of smart network in one hand and stakeholders in the other to create sustainable value of coexistence with the natural environment, integration with human society, and prosperity with the smart industry.

Shaping Distinction, Creating Value, and Building Brand Strength

Since I became the chairman of D-Link, the most common question I ask myself and my team is “What is the value of D-Link?” The value of a company is based on its core technology, closely linked to its corporate culture, and related to its management capability. For me, D-Link symbolizes quality, high security, innovative technology, and the trustworthy and mutually beneficial supply chain partners behind it, and that’s what we value. Therefore, in the Sustainability Report, these elements that shape D-Link’s values are presented in a separate chapter, presenting our core values in their entirety. And systematic brand management is the way to go, so that the value of D-Link can be seen by more people. 
Innovation is often about solving problems or creating value. D-Link’s R&D team continues to strive for excellence, passing two AI-related patent examinations in 2022 and collaborating with Meta to uniquely launch the only virtual reality Air Bridge tailored for Meta Quest, significantly boosting market vitality. In addition, the cloud platform continues to expand functionalities, integrate resources, and optimize management to provide the best solutions for customers that are highly acclaimed worldwide. The people behind the creation of these eye-catching products and services are our dedicated team of professionals who keep a strict eye on quality and information security. With various ISO standards for continuous inspection and verification, coupled with a meticulous supply chain management system, we have been able to create high-quality networking services and products that are in line with international standards, winning domestic and international awards with increased customer satisfaction year after year.

Resource Conservation and Environmental Friendliness to Foster Sustainability

In addition to providing quality products and services, D-Link is also the first networking brand in Taiwan to promote green products from multiple angles. About 16 years ago, when environmental awareness was not yet on the rise, D-Link launched the “D-Link Green” project, which focuses on four major aspects of design, function, material, and packaging to reduce the impact of products on the environment through innovation and conceptualization. In 2022, we will not only introduced the TCFD framework to review the risks and opportunities brought by climate change, but also launched the “Green Pack” project to simplify product packaging, reduce packaging materials, and switch to more environmentally friendly materials, so that consumers can clearly experience the D-Link difference from the first moment they get the product.
Although D-Link does not have a manufacturing division, nor is it a major carbon emitter or water user, it is still doing its best to mitigate climate change and fulfill its responsibility as a global citizen through every small detail of its daily operations. Through the energy efficiency program, annual carbon emissions and purchased electricity savings far exceeded the original targets, and there were significant reductions in water use and total waste. However, all these are the responsibility of enterprises, and we hope that with the power of enterprises, more people will pay attention to environmental and ecological issues. Therefore, D-Link has made a commitment to biodiversity and zero deforestation, communicating the importance of biodiversity to stakeholders and helping to balance nature through subscriptions and covenants. At the same time, we promote the concept of biodiversity through daily sustainability knowledge sharing
and beach clean-up activities initiated by our colleagues, and encourage them to take small steps towards cultivating environmental literacy.

Emphasizing Human Rights, Deepening Social Development, and Spreading Influence

2022 was a year of significant commitment to human rights and society for D-Link. In terms of labor and human rights, besides providing various benefits that exceed government regulations, we value the voice of every employee and launched the “Meet the Executive” campaign, which allows employees to speak directly to the management and express their opinions freely. In addition, D-Link has responded to international advocacy by initiating internal and supplier human rights due diligence to identify important human rights-related issues. Subsequently, for high and mediumrisk projects, we developed relevant mitigation and compensation measures to create an equal and happy workplace. 
In addition, D-Link hopes to turn social inequality around through quality education. Recognizing that geopolitical factors have led to an imbalance in learning resources, D-Link and National Taiwan University of Science and Technology (NTUST) have collaborated to establish the “D-Link Group Scholarship” to encourage foreign students to study in Taiwan, promoting the introduction and nurturing of new technology talents. To root networking education in local communities, we combined industry expertise and engaged with local social welfare organizations. We conducted network assessments for these organizations and organized cybersecurity workshops for underprivileged students, enhancing their local networking capabilities. Throughout the year, we invested six times more resources in implementing diverse social engagement actions, resulting in over a 33% increase in beneficiaries compared to the previous year, thereby expanding our social impact.

Protecting Intellectual Property, Strengthening Governance, and Consolidating Operation Capacity

As we all know, innovation has been the cornerstone of D-Link’s business since its inception, and protecting the results of research and development is a top priority. In 2022, we introduced the Taiwan Intellectual Property Management Standards (TIPS) and developed an intellectual property management plan that is integrated with our operational objectives, so as to strengthen D-Link’s competitiveness in the global market through sound management and protection measures.

In terms of business operation, D-Link constantly monitors market dynamics and international trends, employing a rolling management approach with appropriate adjustments. In addition to strengthening the functions of the Board of Directors and improving the governance structure, the organization has also been restructured into seven major divisions to enable the company to pursue global presence and local practices, uphold sustainable development, and
provide the highest quality products and services to customers around the world, while continuously pursuing industry leadership. Faced with various tangible and potential operational risks, the company, based on assessments from professional advisory teams and internal expert discussions, deliberates on responsive strategies. Regular reviews and management processes are also conducted.

American urban economist Richard Florida once said, “We can create a world of green cities, but it will only happen if we act together, globally, and act now.” Taking Kyoto, Japan as an example, a city with 17 UNESCO World Heritage sites, many people associate it with its historic charm. However, few know that this thousand-year-old city is showcasing a new blend of modernity and tradition through sustainable development. Kyoto encourages citizens to transform
traditional Japanese architecture into low-carbon buildings through subsidy programs and technical guidance. It has introduced sustainable food markets to promote the purchase of environmentally friendly and healthy products. The city has established a shared bicycle system and utilizes renewable energy sources such as solar and geothermal to reduce carbon emissions. Initiatives to ban plastic usage are underway, and sustainable tourism with local characteristics is
actively promoted. Through collaboration among various sectors including industry, government, and academia, the ancient city is being transformed into a sustainable urban center.

From the example of Kyoto, I was struck by the fact that no one is an outsider on the path to sustainability and the future of D-Link is, of course, intertwined with sustainability. In the future, I will continue to lead my team to establish a management mechanism based on honesty and integrity, reduce operational risks and pursue sustainable development, optimize the efficiency of energy and resource utilization to reduce the impact on the environment and ecology through a sustainable operation model, and pursue social inclusion with diversified and fair policies and programs. In terms of corporate core competencies, we hope to strengthen our industrial functions through innovation and R&D capabilities to meet the needs of human development and share the results with society. At the same time, we aim to use our industrial functions and corporate values to maximize our influence and consolidate our position as a leader in global intelligent network equipment and total network solutions, so as to ensure that our position will not falter.
Victor Kuo