Water Management

As climate changes and rainfall are unpredictable, water resources have gradually become an important and rare resource, and water management has become increasingly important for production and costs. The main water used in each factory is general usage, and the Yantai Honghuasheng factory will have a large amount of production water due to process requirements. The water source comes from the local formal water supply system, and the water consumption does not reach 5% of the consumption of a single water supply source.

Management Policy

The primary water sources of the Group’s key subsidiaries in China (with production plants + 100% operational control) all come from local water companies in China, with water sources from reservoirs. Except for Honghuasheng, Yantai, which is in a water-stressed area, water withdrawal at other locations comes from non-water-stressed areas or protected areas, with little impact on water sources.
The Group’s Dongguan Pan-International, New Ocean Precision Component, Jiangxi, and CJ Electric Systems, Wuhu do not cause significant environmental impacts from water withdrawal and wastewater discharge. The production wastewater generated does not reach industrial wastewater treatment standards and is treated as domestic water, which is then directly discharged into the urban sewage network for collection and treatment at sewage treatment plants.
As the Honghuasheng, Yantai plant’s process involves PCB process water, and the industrial wastewater produced is treated through the on-site sewage treatment plan, which complies with local regulations. The wastewater is treated to meet the domestic discharge standards before being released into the urban sewage network for further treatment. In terms of water conservation, we continuously optimize processes to improve water recycling and reuse rates. Currently, after implementing improvements, wastewater generated from pure water production is reused as recycled water, achieving a recycling and reuse rate exceeding 10%.
For wastewater discharge management, each plant obtains permits from the government in accordance with local regulations and performs basic on-site treatment. Once the wastewater meets discharge standards, it is released into the government’s sewage network for further treatment by government-commissioned agencies.
We continue to vigorously promote and implement water-saving policies, aiming to achieve water reduction goals in the future.

<< For details, please refer to: The latest version of the ESG Sustainability Report Chapter: Environmental Friendly >>

Water Withdrawal Analysis Chart
Water Withdrawal Analysis Chart

Water Withdrawal analysis

Pan-International Group's total water withdrawal in 2024 was 1,574.252 thousand cubic meters (million liters), of which 1,385.396
thousand cubic meters came from water-stressed areas. The total freshwater withdrawal was 1,574.252 thousand cubic meters,
total water discharge was 1,259.402 thousand cubic meters, and total water consumption was 314.850 thousand cubic meters.
Compared to 2023 (1,574.252 and 1,543.391 thousand cubic meters respectively), water withdrawal in 2024 slightly increased by 30.861 thousand cubic meters. This was due to the higher proportion of high-end board production (process differences) at the Honghuasheng Yantai plant in 2024, which led to an increase in water withdrawal by 45.759 thousand cubic meters. Water Withdrawal at other plants generally showed slight decreases. Moreover, looking at water withdrawal from 2022-2024, there was still a significant decrease of 260.099 thousand cubic meters in 2024 compared to 2022 (which was 1,834.352 thousand cubic meters).

Looking at the water withdrawal situation from 2022 to 2024, the summary for 2024 is as follows:
 Although the Group (boundary scope) showed a slight increase of 2.00% compared to 2023 (due to increased production of
water-intensive products at the Yantai plant), it still maintained a water conservation rate of approximately 14.18% compared
to 2022.
 Compared to 2023, Pan-International, Taipei achieved a water conservation rate of approximately 12.99%. The main reasons were as follows: In 2023, cleaning water demand increased due to the impact of the pandemic, while in 2024, operations returned to normal mode, resulting in relatively reduced overall water demand, thus showing water conservation effects.
 After CJ Electric Systems, Wuhu experienced a significant increase in water withdrawal due to plant expansion in 2023. It achieved a water conservation rate of approximately 24.85% in 2024 compared to 2023 under similar conditions, mainly due to: In 2024, the plant strengthened monthly water consumption monitoring, promptly investigated and repaired abnormal situations, and improved water management efficiency. (In 2023, there was a water abnormality incident where the water inlet of the central air conditioning system at the Dechang plant broke and was not discovered immediately, leading to a significant increase in water consumption. The abnormality was only noticed when the bill was due, affecting the total water consumption for that year.)

The Group values water resource management and incorporates it into its sustainable development strategy, using ESG indicators as
implementation guidelines, which corresponds to the United Nations Sustainable Development Goal SDG 6 Clean Water and Sanitation. Through supervision and management by the Sustainability Committee, installation of water-saving equipment at various plants, promotion of water resource recycling and reuse, and improvement of emergency response mechanisms, the Group implements effective use and protection of water resources. Additionally, all subsidiaries comply with regulatory standards, and there were no major water shortage or discharge abnormality incidents in 2024, demonstrating the Group's commitment to implementing sustainable water resource management.

<< For information on water discharge and water consumption, please refer to the latest ESG Sustainability Report, section “Environmental Friendliness. >>
<< For details, please refer to: The latest version of the ESG Sustainability Report Chapter: Environmental Friendly >>