A Message From The Chairman

A Message From The Chairman

Tommy Tsai

Chairman & CEO of Senao Networks, Inc.

With the rapid development of new technologies and applications led by 5G and AI, there have been a lot of changes, opportunities and innovations in our life and work patterns, as well as business operations. At the same time, many challenges, risks and opportunities have likewise emerged. SNI actively faces the challenges brought by market competition and transformation of product technologies. It keeps abreast of technological and industrial development trends related to network communication products, while continuously enhancing its product portfolio, adding value to its products, and developing products as well as end-to-end solutions to satisfy customers’ needs.

In improving its product portfolio, SNI has invested more resources to develop its network equipment products and market, which include niche products such as 100G network switches, data center switches, advanced endpoint computing switches, IIoT for industrial and vehicle systems (LTE bridges, sensors, surveillance systems), and 802.11 ax (Wi-Fi 6) wireless Access Point (AP). In terms of adding product value, it has developed a cloud network management software in 2019. Through visualized network solutions and more comprehensive services, it has increased its brand value and maintained technological and market leadership, which is expected to continuously drive revenue growth with various software value-added services.

In 2020, SNI’s operational planning would be carried out based on three aspects; namely, expanding market share in wireless products, increasing the proportion of network switches, and continuously developing vertical integration. The wireless network product market with the new 802.11ax (Wi-Fi 6) technical specification is expected to grow significantly in the second half of 2020. Hence, the strategy implemented last year will continue in order to acquire OEM customers and private brand markets. Faced with increasingly fierce market competition, SNI is accelerating its pace in the transformation, horizontal expansion and vertical integration of products. In terms of horizontal expansion, it is focused on the development of specific technologies, such as edge computing, millimeter wave (mmWave), etc. Moreover, it has set up a new high-speed network as well as mmWave laboratories to develop new application technologies and niche products, so as to add product value. In terms of vertical integration, besides antennas and power supplies, the company has also invested in the development of key stamping shell components to improve its self-manufacturing rate and reduce procurement costs, which can effectively relieve price pressure. In terms of business expansion, it increases cooperation with distributors to effectively drive shipment momentum. It also conducts timely reviews of operational project portfolios to facilitate flexible adjustments and it utilizes its production capacity to maximize output, which is expected to effectively maintain the momentum of revenue growth.

To cope with product business adjustments, construction of SNI’s new Hwa Ya Plant in Taoyuan officially began in July, 2019 and is expected to be completed in Q2, 2022. With a total of 12 SMT product lines to be introduced, revenue is expected to increase by NT$10 billion in the future, with full load operation in 2024.

The impact of the COVID-19 epidemic poses threats and risks to the overall operation of SNI. SNI has been operating in Taiwan for many years and has continuously intensified its local operations. It has fully deployed the necessary resources to maintain its business and has formulated an epidemic prevention plan. It has also formed an epidemic prevention team for better control, so as to minimize occupational health risks and operational impact caused by the epidemic outbreak. Therefore, SNI is capable of responding to such impact, thereby earning the trust of its stakeholders, given its stable overall business operations.

SNI is committed to becoming a socially responsible enterprise. With its continuous growth in profit and performance, the company aims to fulfill its corporate social responsibilities through concrete actions. It actively participates in social welfare and community activities, and continuously promotes various programs that achieve successful results, such as the “Infinity Massage for Fun and Relaxation” activity, which is organized in response to the initiative of the Taoyuan City Government’s Department of Labor to support blind massage therapists, providing employment opportunities for people with disabilities. It offers monthly maternity (NT$2000) and child-care (NT$1,500) subsidies, as well as a reflow oven with the power-saving operation to save electricity cost by about NT$580,000. The company received the Outstanding Green Purchase Enterprise Award from the Environmental Protection Administration and the Department of Environmental Protection of Taoyuan City for three consecutive years, as well as the 2019 CEPro Best Award for Home Networking (i.e., ESR580 product), WinMag’s 2019 Editor's Choice 9.1Award, and Redes Zone’s 2019 Media Review 9/10 Award for its SkyKey I products. It also supports disadvantaged groups through charitable donations and by working with suppliers. It is a great honor for SNI to be recognized by the society and the government for its various achievements in the implementation of projects. By promoting these projects, the company is able to improve the competency of its employees and gain valuable experience. SNI continues to work with stakeholders along with its employees, suppliers, and the community to promote various projects and implement corporate social responsibility.

SNI will carry out CSR policies through its internal Corporate Social Responsibility Committee and promote CSR-related initiatives. Moreover, it will continuously support its “Green Infinity Plan” and propose relevant action plans in line with the United Nation’s SDGs, so as to constantly cultivate happiness among employees. The company actively establishes an environment where there is coexistence, co-prosperity and mutual growth within the society, so as to promote economic prosperity, learn from international, social, and local communities, and introduce various system operations. It also reinforces its core values into organizational behavior and internal processes, and strives to create a LOHAS enterprise, thereby fulfilling its responsibilities as a global citizen and creating sustainable value for SNI.