Letter To Shareholders

Dear Shareholders,

In 2024, global inflation continued to ease, and major central banks successively adopted monetary easing policies to prevent economy downturns. However, high interest rate environment adversely impacted market demand. Additionally, major countries implemented de-risking policies, leading to significant adjustments in supply chains. Furthermore, due to mounting geopolitical risks, the electronics manufacturing industry faced severe challenges and demands for building resilience and adaptability of businesses.

In light of dynamic market changes, PRIMAX continued to deepen its transformation in 2024 and lie on core competency of "X-IN-1 Sensory Fusion" innovations to optimize its product portfolios with focus on enhancing profitability and product quality. In the Information Products segment, despite that AI PC market development were slower than expected, both revenue and profitability grew year over year thanks to increasing orders from PC and gaming customers. The Smart Lifestyle segment revenue declined due to demand weakness. However, the significant rise in new project wins are expected to inject growth drivers in 2025. For the Auto and AIoT segments, the surveillance, professional and automotive audio continued steady shipping, achieving high double-digit revenue growth. Moving forward, PRIMAX will focus on automotive electronics, public safety, and fleet management to further expand its market presence.

In response to the global supply chain strategy and diversification of production sites, the shipping volume from PRIMAX's Thailand plant continued to rise in 2024, while supply quality and costs of the Thailand plant gradually approached the standards of the China plant. Meanwhile, the company is expanding capacity to meet evolving customer demands and enhance its global competitive edges.

(1) “X-IN-1 Sensory Fusion” Leading the AI Revolution, Accelerating Global Market Expansion

PRIMAX is among the few global enterprises that possess both core visual imaging and acoustic technologies. With the strong focus on "X-IN-1 Sensory Fusion," the company is dedicated to deepening the integration of visual, audio, and interface technologies. Leveraging key expertise and manufacturing strengths in microphones, camera sensors, and speakers, PRIMAX positions itself as a comprehensive AI solution provider for X-IN-1 Sensory Fusion, driving the next wave of growth amid the AI revolution.

(2) Expanding into New Markets and Smart Ecosystems

PRIMAX continues to broaden the application of multi-sensory technology, driving Edge AI innovations in audiovisual solutions across key sectors such as Public Safety and AIoT (B2B) visual solutions. The company is also advancing AI video conferencing and automotive product applications while expanding into niche markets such as industrial vision and acoustic inspections to enhance the scope of its technological applications.

In the automotive electronics market, PRIMAX is enhancing vehicle safety and user experience through automotive AIoT applications such as driver monitoring systems and intelligent safety systems. In the public safety sector, PRIMAX's visual and audio technologies have been gradually integrated into surveillance and protection systems, strengthening security infrastructure and improving monitoring capabilities. As smart city development accelerates, the demand for advanced public safety solutions continues to grow. PRIMAX will leverage its technological expertise to offer innovative security solutions, further expanding its market presence.

In addition, AI video conferencing and the professional audio market remain key focus areas, particularly in the high-end segment and premium audiovisual solutions, where market demand is steadily growing. PRIMAX leverages its acoustic expertise to optimize sound quality and provide a diverse range of products designed to meet diverse needs across the market.

(3) Strategic Investments and Capacity Optimization Driving Corporate Transformation

To strengthen its competitive advantages in the Smart Lifestyle and automotive AIoT markets, PRIMAX will actively seek external growth opportunities and new technologies through strategic investments, aiming to achieve a “1+1>2” synergy that accelerates corporate transformation and new business deployment.

For its global manufacturing footprint, PRIMAX is accelerating the expansion of non-China production bases as Phase II of the Thailand plant is expected to be completed by the end of 2025 and steel structure construction already in progress to meet increasing customer capacity demands. Revenue contributions from the Thailand plant are expected to multiply, strengthening the company's competitiveness in the Southeast Asian market and enhancing its market responsiveness.

In addition, PRIMAX's Innovation Incubation Center in Zhubei, Taiwan, is scheduled for completion by June 2025, serving as the company's R&D hub for AI and multi-sensory fusion technologies and a key base for small-scale, diversified production. Equipped with advanced laboratory and pilot production capabilities, the center will optimize design processes to further enhance PRIMAX's R&D strength and market responsiveness. This will enable the company to quickly adapt to market demands, drive product innovation, and further accelerate growth in the Smart Lifestyle and automotive AIoT sectors.

(4) Navigating Market Uncertainties and Driving Sustainability

Facing the global market uncertainties in 2025, PRIMAX will tackle challenges by adopting robust financial strategies and flexible market footprints, while continuously enhancing its competitiveness through technological innovation, capacity optimization, and strategic capital allocation. At the same time, the company remains committed to its sustainability blueprint, ensuring long-term value creation for shareholders.