Amid rapid shifts in the market environment, FENC continues to recalibrate its production capacity and optimize production resources to enhance competitiveness and reduce operational risks. In 2024, FENC strengthened the overall business operation and enhanced the efficiency of resource allocation with added flexibility through business consolidation,  concentration of production capacity and equipment adjustments.

● Consolidating production lines and repurposing equipment for product development

Regarding products experiencing long periods of weak demand, FENC has  improved efficiency by consolidating the production lines and resources to cut losses and boost profits. FENC has also demonstrated agility, responding to market changes by partially repurposing equipment for product development or differentiation based on the market demand. 

● Optimizing production planning and  phasing out inefficient capacity

Considering limited profitability caused by an imbalance between supply and demand in the industry, FENC has adjusted the production strategies, choosing scheduled shutdowns or long-term storage for production lines and idled equipment with low efficiency and high carbon emissions to optimize capital allocation and ensure production efficiency.

● Enhancing the production workforce and advancing industrial and technological upgrades 

To maintain competitiveness for the long haul, FENC has reallocated its production manpower and ramped up product development to accelerate industrial and technological upgrades within the Company. 

These measures delivered radical improvement in the utilization of overall production capacity in 2024. By adding revenue sources and cutting costs, FENC is seeing a dramatic turnaround with losses turned into profits at its Production Business, which is a testament to its business resilience and growth momentum.