The recovery of the global economy remained fragile in 2023. Although the interest rate hike cycle of major central banks neared its end, inflationary pressure continued to exist under the expectation that high interest rates in the US and Europe will persist for a period of time, which continued to suppress demand. At the same time, China's post-epidemic recovery was not as expected, and the industry continued to adjust inventory and decentralize manufacturing, leading to a challenging operating environment for the electronics manufacturing industry.
For PRIMAX, 2023 has been an important year for the Company's steady transformation. Starting from our core Three-Senses-In-One product development, we have continually expanded strategic planning and investment for new businesses and technologies, optimizing product portfolios to expand into automotive electronics, surveillance and security, conference products, professional audio, smart home solutions and building automation. PRIMAX has also actively invested into edge computing and AIrelated AIoT Product development.
With market demand not meeting expectations, PRIMAX has performed strict controls on costs, expenses, and capital expenditure in 2023, allowing our cash on hand to rapidly return to prepandemic levels. Thanks to excellent business administration and resilience, PRIMAX has reached new historic highs for its gross profit margin, operating income, and after-tax net-income margin in 2023. The Group's overall cash flow has also grown exponentially, providing a strong backing for future transformation strategies.
In regards to ESG, PRIMAX continues to examine and improve its ESG operational efficiency through adhering to domestic and global sustainability indexes. In 2023, PRIMAX was honored in the S&P Global Sustainability Yearbook 2024 for the first time, receiving the "Industry Mover" recognition. In the CDP Climate Change Questionnaire run by the authoritative environmental non-profit organization CDP, PRIMAX was recognized as a "Leadership Level A" enterprise, standing out among 21,000 participating businesses. This shows the PRIMAX's positive actions on global climate change issues and its leading performance in information disclosure transparency.
PRIMAX continues to implement transformation of the Group, gaining entry to new businesses and technologies, and moving towards niche and high value-added products. Through the integration of audio, visual and interface technologies, PRIMAX is able to create key new technologies and products that can earn steady profits. The Company's commitment to system integration capabilities will provide comprehensive solutions for clients. For visual technology, the proportion of new applications for automotive/industrial AIoT products is steadily increasing. PRIMAX is deeply committed to developing Smart AI security monitoring, ADAS, AIoT (B2B) visual products, and AR/VR/MR solutions. For audio, TYMPHANY will continue its focus on professional audio and high-end consumer solutions, accelerating the progress on bringing new AVAS products into the car audio market. Integrating group resources, TYMPHANY will enter the video conference product market and increase emphasis on high-end audio products to optimize audio product portfolios, preparing for the next stage of growth in the audio business. For its interface business, PRIMAX will focus on smart home related products such as door locks, door bells, surveillance and security systems. For the information product business groups, developing smart interface products will increase value-added and profit for current products.
In regards to global operations, manufacturing and output volume from the Thailand and Czech Republic production bases have seen steady growth. Meanwhile, construction of the Taiwan Innovation Center in Zhubei continues and will host advanced laboratories, the incubation center, and the new product manufacturing plant.
PRIMAX highly values corporate sustainability and has created a blueprint to achieve strategic sustainability goals, establishing short-term, mid-term, and long-term action plans. By joining RE100 and committing to achieving 100% renewable energy for all global operations before 2040, PRIMAX is dedicated to annual energy saving and carbon reduction programs in active pursuit of reaching its net zero target by 2050. With definitive sustainability goals set at the Group level, PRIMAX will also actively participate in charities and support for underprivileged in remote areas. Attention will be directed to employee welfare and corporate governance, in support of the Company goal as a best employer, preemptively preparing for climate change and playing its part for environmental sustainability.
Chairman and General Manager
Duh, Jia-Bin