Technology Research and Development

Product
Development
and
Innovation

The R&D department embraces the spirit of "green environmental protection, circular regeneration, zero emissions, and sustainable materials" as a generational legacy. It introduces environmentally sustainable materials, implements carbon reduction and energysaving processes and continuously improves the use of recycling technologies. The department focuses on developing high-valueadded products, while closely monitoring international market trends and providing customized services. It is committed to innovation and transformation, aligning with the international community to create a better quality of life for humanity.

In the context of the rapid changes in the business environment and technology, "R&D innovation" is one of our important core strategies and the driving force for corporate growth and sustainable operations. We continues to pursue technological innovation, as explained below:

Newly-developed technologies or products

(1) Technologies successfully developed

(1-1)

PVC Powder Moisture AI Monitoring

(1-2)

Production technology of PVC hard foam pipes

(1-3)

Production technology and formula of PVC hard foam door panel

(1-4)

GRS certification

(2) Newly-developed products

(2-1)

Japan's Tape fabric for marking lines

(2-2)

Wire harness tapes for European and Indian markets

(2-3)

Easy-cut edge banding tape for door panels

(2-4)

High softening temperature automotive floor mats

(2-5)

Soft leather with a slippery feel for marine use

(2-6)

Virus-resistant door panels

(2-7)

Antiviral hard fabric

(2-8)

TPO automotive console/floor mat

(2-9)

Recycled TPE rubber in finished products

(2-10)

POE fish-electricity symbiotic water pond fabric

(2-11)

CG-A Casting

(2-12)

CG-AQC truck seat & rubber interior

(2-13)

Seoul - Car seats & soft leather upholstery

(2-14)

Ju Tai - Sanyang Motorcycle Seat Rubber

(2-15)

Pengda - Nissan Car Seats & Upholstery

(2-16)

Development of soft leather for furniture by Meng Zhe

Sales of newly-developed products

In response to climate change and various functional market demands, we have improved the added value of products and market share. We have also developed non-PVC leather that comply with environmental regulations, meet the needs of domestic and foreign manufacturers that adopt the green concept, and expand to new markets that demand value-added products.

Product category	Product item	2023 Sales target (tonnes/thousand yards)	2023 Sales quantity (tonnes/thousand yards)	2023 Sales revenue (NT$ thousand)	Achieved or not Achieved	The proportion of each new product to the revenue of the product category (%)
Leather	PVC leather	200.0	203.3	33,545	是	4.9%
Leather	TPE eco-friendly leather	120.0	41.0	5,757	否	0.8%
Total sales of 2023 new products		320.0	244.3	39,302
Note 1： New products are defined as those within 2 years of the successful development. Note 2： Reasons for TPE non-achievement: due to factors such as China's lockdown measures, the Russia- Ukraine war and inflation, the global economy experienced a downturn, leading to a significant decrease in demand.

Quality management cycle

CGPC has established standardized operations for quality control, from incoming materials, manufacturing process, finished products and inspection. They all comply with the ISO 9001 quality management requirements, and the automotive PVC leather also meet the requirements of the IATF 16949 management system. Both maintenance or improvement activities must follow the PDCA cycle and we need to find stability during the cycle for growth. If there are discrepancies from the operating standards, we revise the activities to make them comply with the standards. The application of PDCA helps us in review the handling of issues, while making continuous quality improvements in processing requirements, uses, etc. Based on various regulatory requirements (such as REACH, RoHS, control of types of plasticizers, etc.), develop and manufacture products meeting customer needs, and create product contributions and value.

PDCA Management Cycle

Improve proposal activities

In 2023, a total of 37 quality improvement proposals were submitted, and the derived benefits reached NT$2.456 million. In 2023, the actual number of cases and benefits were both higher than those in 2022, and the actual number of quality cases was still higher than the set target value. CGPC sets the target every year, with incentives to encourage employees to actively participate in submitting proposals.

Goal (made)
Result (made)
Benefits (NT million)

2021

2022

2023

Description：

Implementation of employee suggestions for improvement: All employees of the Toufen Main Plant are encouraged to be creative and propose items that are beneficial to production, quality, occupational safety and health, energy resources, and so on, and through the improvement of the reward system, select the number of items relevant to improving product quality.

Product quality improvement project: for the director of the fourth plant (raw materials/building materials/adhesives/rubber) of the Toufen Main Plant to implement CER items and core problem improvement (short-/medium/long-term) projects for the quality improvement of this plant. Striving for excellence to maintain corporate sustainability.

R & D Innovation

CGPC refines its manufacturing technology to improve the efficiency of energy conversion and incorporate the use of intelligent AI inspection to develop new value-added products. The Company also pays attention to global market trends and values customer needs, and provides customization service. We are committed to exploring innovation and developing products that are low-toxicity and low-pollution. The R&D Department recently researched, developed, and tested products with natural marine organism husk powder. It can reduce environmental pollution and is hoped to be effectively used in various products in the future to develop low-toxicity products.

Develop“Chroma cool” in response to climate change

Solution: Chroma cool
Description of promotion:
In extreme climates, the duration of hot weather can be longer than the number of cold days, we have developed a new type of "Chroma cool," which can be used for motorcycle seat cushions and outdoor sports equipment. The products are available in various colors. Compared with traditional leather, they can reduce the temperature by 10 to 20 degrees, which is a great benefit for motorcyclists and sports enthusiasts.
Implementation Status:
We have been actively marketing and pursuing a strong market presence, resulting in a cumulative sales volume of 110,265 yards from 2021 to 2023.
Benefits：
It is estimated that market demand will continue to rise in the future. In response to market changes, the future goal is to continue to improve other functions and enhance market competitiveness.
Obtained the patent for new invention no.M631078 in 2022.

Circular economy - Products developed with the latest curing technology (antibacterial function)

Solution：Use natural marine biological shell powder to replace chemical antibacterial agents
Description of promotion：
CGPC, in response to sustainable development and circular economy issues, has utilized technological methods and creative ideas through its research and development team. By leveraging the antibacterial properties of calcined marine bio-shell powder and innovative approaches, the company gradually replaces the use of chemical synthetic antibacterial agents with natural non-toxic marine bio-shell powder. This is applied in plastic-related products, creating a circular economy and contributing to environmental protection.We adopt the latest curing technology to add natural shell powder to resin to be applied to the surface of plastics, which can pass the mold resistance testing (ASTM G21) and antibacterial test (JIS Z-2801).

•Note 1：

PS1 - Mold resistance testing (ASTM G21) includes testing against Aspergillus niger, Chaetomium globosum, Trichoderma viride, Penicillium funiculosum, and Aureobasidium pullulans.

•Note 2：

PS2 - Antibacterial testing (JIS Z-2801) includes testing against Staphylococcus aureus and Escherichia coli.

We highly value the sustainable development of ESG. While pursuing sustainable operation and profit, our three core strategies of sustainable vision "R&D and innovation," "stable operation" and "social inclusion" are to co-create value with stakeholders to improve our competitive advantage of sustainable development.
R&D and Innovation Goals：

•

R&D and Innovation Goals: Sustainable Development Goals: In the future, we will continue to plan and develop new green and eco-friendly antibacterial products, use nano and compound materials, etc. to develop products with diverse antibacterial effects. We will grasp market trends, understand customer needs, and improve the our long-term competitive advantage.

•

R&D and Innovation Benefits:Our R&D team follows global trends, and is committed to meeting the Company's goals in circular economy, reduction of waste and environmental protection. The breakthrough technology research and development can improve morale, demonstrate the Company's contribution to environmental protection, enhance corporate image, make the business more competitive, and win the trust of customers.

New product development

✚ PVC processed products (adhesive fabric products, rubber products)

Film and Sheet

1 PVC inkjet printing advertising film

Improve the inking effect on the surface of PVC tape, effectively improve the printing quality of UV ink, and can be effectively applied to the output of inkjet printing products

2 Non-p floor tile protective layer

The wear-resistant layer fabric for PVC floor tiles can meet the requirements of NON-P/non-toxic/ heat-resistant/low shrinkage.

3 PVC low shrinkage masking film

Masking film for automotive baking varnishes, used for downstream sizing and coating processing. They can withstand high temperature baking without embrittlement or adhesive residue.

4 Low temperature-resistant outdoor PVC door frame film

Rigid adhesive tapes for outdoor door frames are used for building and decoration. They can undergo cold roll forming processes outdoors without cracking (cold resistance -20°C), outdoor weathering, and are used as decoration for various door frames.

PVC Leather

1 Tour bus car seats & soft leather upholstery

The premium evolution tour bus seat leather provides a more comfortable ride.

2 Marine & Jet Ski Seat Leather

Jet ski seat leather, anti-mold, anti-bacteria, and UV-resistant leather.

3 MIH power bus seat upholstery

Introduce electric bus seat leather to create a new era of green transportation together.

4 Agricultural Machinery Seat Leather (SEATS & MILSCO)

Professional customized farm machinery seat leather with anti-fouling and UV-resistant seat cover design.

5 United Soft Baseball Gloves

The new trend NON-P children's non-toxic quality products.

6 Antiviral rubber sheet

Introduce anti-viral formula into artificial leather to effectively inhibit viruses, reduce the risk of infection, improve environmental quality, and create a comfortable space.
Passed the antiviral test (ISO 21702) of BOKEN Japan, H3N2 influenza virus, and feline calicivirus, with an antiviral effect of 99.99%.

✚ Environmental friendly materials (composite products with recycled materials, recycled products from waste tires)

Eco-friendly Materials

Recycle and reuse environmentally friendly products

1 TPE shoe series (R-grade) products

Made of post-consumer PET bottles to make non-woven fabrics, which are compounded with recycled TPO or industrial waste TPU materials to make recycled TPE leather. We have obtained GRS Global Recycling Standard Certification (Scope Certificate Number: IDF-22-420552).

2 Recycled Tires carbon black TPE Leather

The carbon black recovered from crushed waste tires is introduced into TPE leather to replace the carbon black produced from raw petrochemical materials. This carbon black can reduce carbon emissions by 60%.

3 Single material TPO leather

The product uses a single TPO material, which is lightweight and reduces energy consumption for transportation. After disposal, because they are made of the same material, they can be directly pulverized for recycling without additional disassembly treatment and are easy to recycle.

✚ Research and development of innovative products (translucent leather)

Translucent leather is CGPC's latest and most advanced product. It is translucent and allows light to pass through PVC leather.

Function introduction
The special material design can present various patterns and prints through the light source while maintaining the surface state to enhance the level and uniqueness of the product.

Application of translucent leather products
★ For games, e-sports, automobiles, arts and cultural venues, hotels, restaurants, KTV, movie theaters, department stores, etc.
★ A unique design that accentuates your corporate and personal style.
★ There are many more applications waiting for you to discover