Next-Gen Thermal Solution

In this era of relentless AI evolution, technology relies on a force often overlooked,

yet never absent—Thermal Management.

We believe that every kilowatt saved and every cooling innovation is a gift of choice for the next generation.

SUNON—The artistry of air and water, for your everyday.

Product Innovation

Product Innovation

Annual performance

The Company demonstrated outstanding performance in product research and development, environmental sustainability, and supply chain management. Through continuous technological innovation and product efficiency optimization, a total of 792 million kWh of energy savings was achieved during the year, successfully reducing approximately 375,000 metric tons of CO₂-equivalent emissions. This fully reflects the Company’s core capability of driving carbon reduction through innovation and advancing sustainability through research and development.

At the same time, from 2011 to 2025, the Company has maintained a 100% compliance rate in product hazardous substance testing for 14 consecutive years, underscoring its strong commitment to product safety, environmental protection, and consumer health. In terms of intellectual assets, the Company has cumulatively obtained 3,483 patents, reflecting years of dedicated R&D efforts and strengthening its competitive advantage in global markets. Supply chain management has also delivered strong results, with both the approval rate for newly introduced suppliers and the annual supplier audit pass rate reaching 100%, demonstrating the Company’s use of rigorous standards and regular audits to ensure supply chain quality, responsibility, and sustainability performance.

In addition, the Company has actively deepened local collaboration, achieving a local procurement ratio of 68% and a local delivery ratio of 87%. This not only shortens logistics distances and reduces environmental impact, but also promotes the development of local industries. Taken together, these achievements demonstrate the Company’s comprehensive management capabilities in environmental performance, product responsibility, and supply chain sustainability, as it continues to move toward becoming a sustainability benchmark enterprise.

792 million kWh

Product R&D energy saving performance

3483

Cumulative number of patents granted

100 %

New Supplier Evaluation Pass Rate

100 %

Annual Supplier Audit Pass Rate

Material Procurement

In response to the challenges of climate change and resource sustainability, the Company regards raw material management as a critical element in advancing low-carbon transition and strengthening supply chain resilience, implementing responsible procurement and carbon management from the source. Through institutionalized material procurement policies integrated with regulatory compliance, supplier sustainability performance evaluation, and risk control mechanisms, the Company ensures that the raw materials it uses meet standards for quality, safety, environmental protection, and human rights. At the same time, it is actively introducing raw material carbon footprint inventory and data management to identify upstream carbon emission hotspots in its products, providing a basis for subsequent carbon reduction strategies and low-carbon design optimization. By integrating procurement management with carbon management, the Company continues to improve resource efficiency, reduce environmental impacts, and work together with supply chain partners toward sustainable growth.

Raw Material Usage

The raw materials and packaging materials used in the Company's products are mainly supplied by external suppliers and include plastic raw materials, metal parts, injection-molded parts, electronic parts and components, magnets, wires, various consumables, and packaging materials, with non-renewable materials still accounting for the majority overall. To ensure the quality, stability, and compliance of raw material supply, Sunon has established supplier selection and qualification review mechanisms in accordance with its existing procurement management system, entered into procurement contracts with qualified suppliers that have passed the review, and then manages material procurement and delivery based on the production needs of each operating site to ensure the smooth operation of production activities.

In 2025, total raw material consumption amounted to 23,454 metric tons, of which metal parts and plastic raw materials were the primary categories used. As global attention to low-carbon and circular economy issues continues to increase, the Company has also gradually incorporated environmental and sustainability considerations into raw material procurement and product design evaluation, while continuing to assess the feasibility of introducing low-carbon materials, alternative materials, and recycled materials in order to improve resource efficiency and reduce the environmental impacts across the product life cycle.

Going forward, Sunon will continue to refine its procurement management system and, through collaboration with supply chain partners, promote sustainable material management and supply chain responsibility, jointly advancing toward a procurement model that balances quality, efficiency, and environmental friendliness.

Note 1: The calculation boundary covers production sites, including the Kaohsiung Headquarters, Kunshan Guangxing Plant, Beihai Sunon Plant, Beihai Lizhun Plant, Huizhou Sunon Plant, and Philippines Sunon Plant.

Note 2: As the weight of all raw materials is not currently tracked, this year's figures were calculated using the average weight of raw materials within the same category.

Note 3: Consumables are not presented in the chart because their usage accounted for less than 1%.

Packaging Material Recycling and Reuse

The Company mainly operates under a B2B business model. The final disposal and recycling of products at the end of their life cycle are generally handled by downstream customers according to their own usage conditions. As a result, it is relatively difficult for the Company to directly recover and reuse products after sale, and therefore no product-related recycling mechanism has currently been established. Nevertheless, in order to improve resource efficiency and reduce resource waste, the Company has voluntarily implemented recycling and reuse measures for packaging materials by collecting and sorting reusable packaging materials, classifying and processing them according to material characteristics and usage conditions, and then returning them to suppliers for reuse in raw material packaging, thereby extending the service life of packaging materials and reducing one-time resource consumption.


Note: Due to supplier geographic considerations, packaging material recycling and reuse measures are implemented only at the Beihai Sunon Plant, Beihai Lizhun Plant, and Kunshan Guangxing Plant.

Raw Material Carbon Footprint

A carbon footprint refers to the GHG emissions generated across all stages of a product's life cycle, from raw material acquisition, production and manufacturing, and transportation and distribution to the use phase and final disposal and recycling. It is an important indicator for measuring a product's environmental impact and advancing carbon reduction management. As international market requirements for low-carbon products and supply chain decarbonization continue to increase, product carbon footprinting has become a key tool for enterprises to achieve carbon reduction targets and strengthen market competitiveness.

To strengthen the management of raw material carbon information and supply chain decarbonization, Sunon introduced a product carbon footprint management system in 2025 and simultaneously established a supplier carbon management system to create a consistent data collection and management mechanism. The Company is promoting the development of raw material carbon footprint data in phases, combining supplier inventory guidance with data quality management, and is gradually building a carbon emissions database for key raw materials as an important basis for subsequent carbon reduction initiatives and decisions on the introduction of low-carbon materials.

2025

Phase 1 Short-term Target ✅

Develop a supplier receiving system to improve raw material receiving information and increase the collection of basic information on raw material weight, material type, composition, and density.


Note: The Phase 1 target of establishing all suppliers' basic information has been completed. The Phase 2 plan was launched in 2025 and is currently under implementation.

2030

Phase 2 Mid-term Target

Establish a supplier carbon management system, guide suppliers in conducting organizational carbon inventories, and gradually collect carbon inventory data from 100% of suppliers.

2035

Phase 3 Long-term Target

Guide suppliers in calculating product carbon footprints and gradually collect raw material carbon footprint data.

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