ESG

Material Issues

Risks

2023 Risk Response Measures

Environmental

Waste disposal management

1. Advocate the concept of resource recycling, enhance the recycling and reuse of process waste, and strengthen the recycling loop system.

2. Install waste oil recovery equipment and promote the recycling of waste oil.

3. Optimize the process of wastewater treatment equipment and improve the equipment to reduce the payment of usage fees and chemical expenses.

Supply chain management

1. Supplier Management Policy, specifying requirements for suppliers to adhere to issues such as environmental protection, occupational safety and health, and labor rights, etc.

2. Encourage suppliers not only to possess quality and on-time delivery capabilities but also to fulfill corporate social responsibility, thus constructing a sustainable supply chain.

Meet stakeholder expectations

Since 2023, our company has been actively participating in the Carbon Disclosure Project (CDP) surveys, responding to stakeholder expectations. Through the investigation of climate change-related risks during the survey process, we aim to understand and address these issues step by step, enhancing our management performance.

Social

Friendly workplace, occupational safety and health

1. Continuously promote awareness of workplace safety and health, as well as conduct regular fire self-defense drills, to ensure the personal safety of employees in the working environment.

2. Conduct periodic operational environment monitoring to understand the actual conditions of the work environment, ensuring the safety and health of workers and preventing occupational accidents.

Talent recruitment and development

Engage in diverse and open recruitment channels and establish industry-academic cooperation agreements with universities, colleges, and vocational training centers.

Governance

Compliance

The company has established an 'Ethical Corporate Management Code of Conduct,' which is publicly available on the company's internal website for employees to consult at any time. Additionally, external professionals are hired to conduct compliance training courses within the company, fundamentally fostering employee integrity and preventing unethical behavior in the workplace. This approach aims to establish a strong sense of legal consciousness among the staff.

Material price

The prices of raw materials are susceptible to international market fluctuations. We continuously assess market conditions and monitor the supply and demand of raw materials based on order situations. Through diversified procurement strategies, we aim to mitigate risks associated with fluctuating raw material prices.

Information security management

1. Strengthen information security management and confidentiality principles to safeguard customer data and rights.

2. Ensure the sustainable operation of systems by conducting daily backups and utilizing two leased data lines as redundant measures, ensuring uninterrupted network signals.

3. Information security promotion and educational training.

Financial risk

1. Foreign Exchange Rate Fluctuation Risk:

The company's major receivables and payables are denominated in the same currencies, resulting in a natural hedge. When there is an insufficient position in payables, the company observes trends in the international foreign exchange market and may selectively engage in currency exchange or utilize surplus foreign currency positions through market spot transactions to timely mitigate risks.

2. Interest Rate Fluctuation Risk:

(1) Short-term Funding Needs: Monitor changes in central bank interbank rates and rates of transferable time deposits with various maturities closely. Adjust borrowing maturities appropriately to effectively reduce costs and meet short-term funding needs.

(2) Medium to Long-term Funding Needs: Obtain medium to long-term credit lines from financial institutions and reduce the cost of capital through project-based borrowing.