Corporate Governance

Implementation Status of Corporate Governance

Implementation Status of Corporate Governance

Succession Plan for Board Members and Important Managers

Director Selection

The “Articles of Association” of our company stipulate a comprehensive candidate nomination system for the election of directors. The “Director Election Regulations” and “Corporate Governance Practices Guidelines” specify that the composition of the board of directors should consider diversification. In addition to possessing professional backgrounds and skills, consideration should also be given to the company’s future development, long-term strategic planning, and the diverse professional knowledge required by the company. The selection process for board members adheres to the principles of fairness, openness, and impartiality to select individuals with the necessary expertise, practical experience, and technical competencies to fulfill their duties as directors, thus achieving the ideal goal of corporate governance.

Execution Situation of the Company

In response to operational needs, the board of directors of our company is composed of nine members. In the framework of the company’s future development and long-term strategic planning, we seek suitable board members, whether general directors or independent directors, who are characterized by integrity, responsibility, innovation, and decision-making ability. Personality traits that align with the company’s core values, relevant industry experience, as well as factors such as gender and age balance, are considered in the selection process to form the best board of directors, promoting the company’s development and maximizing its interests.
Each director is required to complete at least 6 hours of continuing education annually during their tenure to assist them in continuously updating their knowledge and maintaining their core values and professional advantages and capabilities.
The company also stipulates the “Director Performance Evaluation Method.” An evaluation is conducted annually, measuring the effectiveness of the board through internal self-assessment and self-assessment by board members. This evaluation helps confirm the effectiveness of the board’s operations and assesses the performance of directors, serving as a reference for future director selection.

Succession Planning for Key Management Levels
  1. Employees at or above the first-level supervisor in our company are considered important management personnel and potential successors, responsible for relevant operational management within the organization. Each management level has designated personnel for duty representation. In addition to possessing necessary professional skills and experience, the values and management philosophy of key management personnel must align with the company’s corporate culture. Personality traits must include integrity, foresight, innovation, and the ability to gain the trust of employees and customers.
  2. Through monthly participation in group management meetings, collective involvement in training and continuing education programs related to important operational decisions, and rotations, project assignments, and group ideology advocacy, we strengthen management capabilities, cultivate multifunctional and forward-thinking leadership, and enhance decision-making execution.
Execution Situation of the Company
  1. In July 2022, Manager Chen Ruisui from the Audit Department exchanged positions with Manager You Yajing from the Finance Department, with Manager Chen Ruisui assuming the responsibilities of the Finance Department and Manager You Yajing transferring to the Audit Department.
  2. In March 2023, Deputy Manager Chen Jinnong from the Management Department was transferred to Factory Two to oversee manufacturing management.
  3. In March 2023,Shipping Department Supervisor Lin Sukui concurrently assumed responsibilities in the Human Resources Department, overseeing employee education and training planning and student management. Through job rotations and training, we aim to develop future key management personnel and successors.
  4. In May 2024, Mr. Su Jieliang and Mr. Lin Yuzheng were appointed as assistant managers of our company, leveraging their extensive experience to enhance the company’s maximum efficiency.
  5. In 2023, a total of 8 management training courses were conducted, with 52 participants and a total learning time of 22.2 hours.
Course Title Class Date Training Method Duration Number of Trainees
Financial Report Interpretation Skills 2023/1/16~4/24 Internal Training 3 10
Making Better Decisions: Developing Courage from Individual to Team 2023/1/17~10/18 Internal Training 2 6
Not Being Overwhelmed by Pressure 2023/2/4~6/29 Internal Training 2 6
Make Your Boss Understand You 2023/4/6~6/20 Internal Training 2.7 3
13 Strategies to Drive Organizational Accountability 2023/4/7~8/25 Internal Training 2.5 2
Business Negotiation 2023/4/14 Internal Training 6 16
Mastering Efficient Work Methods in 15 Lessons 2023/5/25~10/26 Internal Training 2 6
14 Lessons to Tackle Challenges and Ensure Project Success 2023/8/25~12/4 Internal Training 2 3

Independent and Qualified Assessment of Certified Public Accountants

The board of directors of our company completed the assessment of the independence of certified public accountants in the 113th year of the Republic, and obtained the declaration of absolute independence issued by the certified public accountants. The assessment results were reported to the Audit Committee and the Board of Directors for deliberation on March 12, 113th year of the Republic, and relevant assessment items are as detailed in 1-1.

In the 112th year of the Republic, the board of directors resolved to amend the ‘Corporate Governance Best Practices Guidelines’ and stipulated that regular (at least once a year) reference should be made to the Audit Quality Indicators (AQI) to assess the independence and suitability of appointed accountants. The results were reported to the Audit Committee and the Board of Directors for approval. The independence and suitability of the accountants appointed by the company were assessed based on the Audit Quality Indicators (AQI) by the board of directors’ unit of the company in the 113th year of the Republic. They all met the company’s standards of independence and suitability, qualified to serve as the company’s certified public accountants, and obtained the declaration of absolute independence issued by the certified public accountants. The assessment results were approved by the Audit Committee and the Board of Directors after deliberation on March 12, 113th year of the Republic, and the relevant assessment key items are listed as detailed in 1-2.

1-1 Auditor Independence Assessment Criteria

Assessment Item Yes No
1.As of the most recent certification operation, there were no situations where there was no change for seven years. v
2.Not an employee of the company or related enterprises. v
Not a director or supervisor of the company or related enterprises (but if serving as an independent director of a subsidiary whose parent company or the company directly or indirectly holds more than 50% of the voting shares, this does not apply). v
Neither the individual nor their spouse, minor children, or others holding more than 1% of the total issued shares of the company or the top ten individual shareholders holding shares in someone else's name. v
Not the spouse, relatives within the second degree of kinship, or direct blood relatives within the third degree of kinship of the persons listed in the preceding three items. v
Not a director, supervisor, or employee directly holding more than 5% of the total issued shares of the company's shareholders or one of the top five corporate shareholders holding shares. v
Not a director (trustee), supervisor (auditor), manager, or shareholder holding more than 5% of the shares of a specific company or institution with financial or business transactions with the company. v
No spouse or relative within the second degree of kinship with other directors. v
None of the situations specified in Article 30 of the Company Act. v
Not elected under Article 27 of the Company Act by the government, legal person, or their representatives. v
Not served as a director, manager, or in a position significantly affecting audit cases of the company in the past two years. v
Whether a "Independence Statement" issued by a commissioned accountant has been obtained. v

1-2 Auditor Independence and Suitability Assessment Criteria

AQI Indicators Focus of Measurement Meeting the Criteria
Aspect One: Professionalism
(1-1) Audit Experience Whether accountants and above-level audit personnel have sufficient audit experience to perform audit work. Meeting the Criteria
(1-2) Training Hours Whether accountants and above-level audit personnel receive sufficient education and training to continuously acquire professional knowledge and skills. Meeting the Criteria
(1-3) Turnover Rate Whether the firm maintains a sufficient number of senior human resources. Meeting the Criteria
(1-4) Professional Support Whether the firm has sufficient professional personnel (such as evaluators) to support the audit team. Meeting the Criteria
Aspect Two: Quality Control
(2-1) Accountant Workload Whether the accountant workload is excessive, including the number of public issuers supervised and the percentage of accountant working hours invested. Meeting the Criteria
(2-2) Audit Input Whether the investment of audit team members at each audit stage is appropriate. Meeting the Criteria
EQCR Review Situation Whether the accountant assigned to the Quality Control Review (EQCR) invests sufficient time to review the audit case. Meeting the Criteria
Quality Control Support Capability Whether the firm has sufficient quality control personnel to support the audit team. Meeting the Criteria
Aspect Three: Independence
(3-1) Non-Audit Service Fees The impact of the proportion of non-audit service fees on independence. Meeting the Criteria
(3-2) Client Familiarity The impact of the cumulative years of providing audit services for certified clients on independence. Meeting the Criteria
Aspect Four: Supervision
(4-1) External Inspection Deficiencies and Penalties Whether the firm's quality control and audit cases are executed in accordance with relevant laws and regulations and standards. Meeting the Criteria
(4-2) Supervisory Authority's Letters for Improvement Whether the firm's quality control and audit cases are executed in accordance with relevant laws and regulations and standards. Meeting the Criteria
Aspect Five: Supervision
(5-1) Innovative Planning and Advocacy The commitment of the accounting firm to improve audit quality, including the innovative ability and planning of the accounting firm. Meeting the Criteria

Operation Status of Corporate Governance

Operation of Corporate Governance and Differences from the Practices Guidelines for Listed and Over-the-Counter Companies

Implementation of Sustainable Development

1. Establishing Relevant Risk Management Policies or Strategies

The company formulated risk management measures in 2020, covering various risk management categories, organizational structures, assessment procedures, and risk management policy guidelines concerning external environments, economics, politics, laws, industries, and internal operations.

2. Establishing Appropriate Environmental Management Systems

The company’s subsidiaries’ production processes are certified through ISO 9000, ISO 14000, and IATF 16949, aiming to reduce environmental pollution during production. All management systems comply with environmental regulations. The company has internally developed environmental safety management operations, actively managing environmental and occupational health and safety aspects, ensuring employee workplace safety and health, and maintaining ecological balance.

3. Enhancing Energy Efficiency and Utilizing Environmentally Friendly Materials

The company and its subsidiaries will continue to research and develop low-pollution materials to replace those used in products and recycle production waste. Efforts are ongoing to improve energy efficiency, including paperless initiatives, energy-saving measures, waste reduction, and recycling, to minimize environmental impacts.

4. Potential Risks and Probabilities of Climate Change on Current and Future Business Operations

Periodic employee awareness programs on energy conservation and carbon reduction are conducted, with the company fully transitioning to LED lighting. Greenhouse gas reduction issues are incorporated into risk management processes, continually assessing the potential risks and opportunities of climate change, actively promoting energy conservation, carbon reduction, greenhouse gas reduction, water conservation, and other waste management plans.

5. Policies for Greenhouse Gas Reduction, Water Conservation, and Other Waste Management

The company places significant emphasis on energy conservation and carbon reduction, periodically conducting employee awareness programs on these initiatives. Goals for reduction are set, utilizing energy-efficient products such as LED lighting and promoting paperless processes. Water management plans are established to reduce water usage, aiming for a 1% reduction annually over a five-year period. Total business waste is reduced, and efforts are made to increase recyclable waste resources, carefully selecting waste disposal and recycling vendors to minimize environmental risks.

6. Formulating Management Policies and Procedures in Accordance with Relevant Regulations and International Human Rights Conventions

The company adheres to relevant labor laws and international human rights conventions, formulating “work rules” and “salary cycles” to protect employees’ legal rights and interests. By complying with national laws, including labor standards, employment services, and gender equality laws, the company promotes internal work rule advocacy and provides complaint channels to maintain employee rights, ensuring fair treatment and respect for all employees. No instances of child labor, forced labor, or human rights violations have occurred.

7. Implementing Reasonable Employee Welfare Measures Reflecting Business Performance in Employee Salaries

The company implements humane management and various welfare measures, allocating 2% to 10% of profits as employee compensation in accordance with the company’s articles of association, proposed by the board of directors in the form of stock or cash dividends. Reasonable employee welfare measures are established and implemented, including salaries, vacations, and other benefits, with business performance appropriately reflected in employee salaries through salary compensation committee oversight, performance assessments, and bonus distributions.

8. Providing Employees with Safe and Healthy Work Environments

Regular employee health checks and a safe working environment are provided, with fire prevention and disaster preparedness training conducted to safeguard employee lives. Providing a safe, healthy, and comfortable working environment is a goal, promoting health and safety management to instill correct concepts and maintain physical and mental health among employees. This year, there were no work-related accidents among employees, with a 0.1% rate of work-related accidents occurring during commutes, and motorcycle safety promotion activities were conducted for affected employees.

9. Establishing Effective Career Development and Training Plans for Employees

To enhance employee skills and organizational competitiveness, internal education and training programs are developed, encouraging employees to participate in internal and external training courses. Employees are encouraged to improve themselves by participating in training courses related to different career capabilities, enhancing their professional skills, achieving career development goals, and ultimately achieving corporate operational objectives.

10. Formulating Policies to Protect Consumer or Customer Rights and Complaint Procedures

While the company does not sell products to end consumers, communication channels with customers are kept open, actively meeting customer requirements to continually improve customer satisfaction. Contact channels are established on the company’s website for direct communication with stakeholders. Marketing and labeling of products and services follow local regulations and international standards for customer and supplier rights.

11. Establishing Supplier Management Policies

The company formulates relevant articles such as subcontracting management methods and occupational safety and health management regulations. If a supplier’s contract violates its corporate social responsibility policy and significantly affects the environment and society negatively, the company reserves the right to terminate or dissolve the contract at any time, raising awareness among suppliers about social responsibility and environmental importance and observing their actual operational conditions.

12. ESG Implementation Status

According to the schedule outlined in the roadmap for sustainable development of listed companies, our company, with a paid-in capital of less than 2 billion NT dollars, is required to submit the individual company sustainability report for the fiscal year 2024 by the end of September 2025. Progress on quarterly completion shall be reported to the Board of Directors.

2024 Sustainability Report Main Schedule Progress Table

Work Items Projected Execution Dates Actual Execution Dates Progress Explanation
Initial meeting for Sustainable Report Guidance December 2023 December 4, 2023 Completed
Sustainable Report Guidance - Education and Training Course - First session (Introduction to GRI 1 and GRI 2) December 2023 December 15, 2023 Completed
Sustainable Report Guidance - Education and Training Course - Second session (Identification of stakeholders and significant topics in GRI 3) December 2023 December 22, 2023 Completed
Planning the outline of the Sustainable Report February 2024 March 4,2024 Completed
Identifying significant topics and reporting to the Board February 2024 March 12,2024 Completed
Collection of relevant data for significant topics in the Sustainable Report in accordance with the "Operation Regulations for the Preparation and Declaration of Sustainable Reports by Listed Companies" April to December 2024 to January 2025
Drafting the initial version of the Sustainable Report March to April 2025
Finalizing the Sustainable Report May 2025
Graphic design for the Sustainable Report (approximately 1 to 1.5 months) June 2025
Finalizing the Sustainable Report after graphic design End of August 2025

Information Security Management

1. Scope of Application

Matters concerning information security shall be handled in accordance with these regulations unless otherwise specified.

2. Information Security Organizational Management Framework

To implement information security management, the company shall establish an information security organization, which shall include senior executives of the company, responsible for promoting, coordinating, and supervising the following information security management matters:

  • Approval and supervision of information security policies.
  • Allocation and coordination of information security responsibilities.
  • Supervision of information asset protection matters.
  • Review and supervision of information security incidents.
  • Approval of other information security matters.
3. Account Management
  • Information systems must have account and password login management functions.
  • Depending on the business functions, account types shall be distinguished, with each employee using one set of account and password for each type. Users must properly safeguard their personal accounts and passwords, with passwords being at least six characters long and changed every three months. Personal passwords must be kept strictly confidential, and if leakage is detected, they must be changed immediately to ensure information security.
  • Upon changes in personnel, accounts and permissions shall be disabled or deleted according to their status, as approved by the responsible supervisor.
4. Data Access
  • Network monitoring systems shall be installed to monitor communication lines, protocols, data traffic, data content, and usage objects, managed by designated personnel from the information department.
  • Important servers shall be installed within the company’s protected network, with internal and external networks separated by security devices (firewalls) and security access permissions set according to business needs.
  • Requests for changes in firewall security permissions shall be modified by designated personnel upon approval from the information department, with the change history recorded.
  • The information department shall periodically review firewall security permissions and computer network security matters, and establish a network intrusion detection system to effectively detect malicious intrusion events.
  • When transmitting confidential data via public networks, data encryption mechanisms shall be employed.
  • Firewall system software shall be regularly updated to address various network attacks.
5. Network Security Management
  • Network monitoring systems shall be installed to monitor communication lines, protocols, data traffic, data content, and usage objects, managed by designated personnel from the information department.
  • Important servers shall be installed within the company’s protected network, with internal and external networks separated by security devices (firewalls) and security access permissions set according to business needs.
  • Requests for changes in firewall security permissions shall be modified by designated personnel upon approval from the information department, with the change history recorded.
  • The information department shall periodically review firewall security permissions and computer network security matters, and establish a network intrusion detection system to effectively detect malicious intrusion events.
  • When transmitting confidential data via public networks, data encryption mechanisms shall be employed.
  • Firewall system software shall be regularly updated to address various network attacks.
6. Information Security Policies and Management Practices

Risk Management Report

Risk Management

In recent years, global enterprises have faced significant changes in the economic environment, such as trade controls between China and the United States, disruptions caused by emerging high technologies in cybersecurity, and the spread of the Covid-19 virus. These issues have led to substantial losses for companies due to inadequate responses. Some industries, such as aviation, automotive, and tourism, have even been forced to cease operations.

To avoid potential risks that may lead to operational crises and in line with the spirit of sustainable operations, Shian Yih established a risk management organization in 2020. It formulated risk management methods and procedures to effectively monitor and reduce losses caused by risks, allowing the company to continue its operations within an acceptable risk range and achieve its business goals.

Risk management covers various external risks such as environmental, economic, political, legal, technological, and industry-related factors, as well as internal operational risks such as operational security, quality, information security, occupational health and safety, and financial risks. In addition to existing management functions and institutional regulations, cross-departmental organizations such as project teams and risk management groups are established to effectively supervise and manage risks based on the type of risk.

Types of Risks and Management Scope
Risk Types Considerations Risk Explanations Functional (Responsibility) Units
External Risks Environmental, political, economic, legal, technological, and industrial changes
  • Financial losses due to changes in national policies, fiscal and tax changes, subsidy cancellations, legal changes, etc.
  • Changes in market demand due to economic, social, and demographic changes
  • Loss of competitive advantage due to rapid technological and industrial changes
Finance Department, General Manager/Board of Directors, Sales Department, Production Development Department, Research and Development Department, etc.
Internal Operational Risks Sales
  • Overdue payments from customers
  • Decrease in customer credit rating
  • Excessive inventory
  • Overdue tooling fees
  • Company losses due to improper business conduct (low or negative profit orders, pricing errors, incorrect order details, etc.)
Sales Department
Production cycle
  • Improper quality management leading to returns, rework, and scrap
  • Mistakes in the manufacturing process (processes, personnel, equipment, etc.)
  • Inadequate equipment maintenance, environmental management
  • Improper production scheduling leading to idle personnel, materials, and equipment
Manufacturing Department, Quality Assurance Department, Biotechnology Department, Plant Management, Production Management (Materials)
Supply chain
  • Overly centralized procurement
  • Quality, price, and delivery of supplies
  • Supplier non-compliance with corporate social responsibility and environmental standards leading to company risk
  • Infringement of intellectual property
  • Material shortages or substitution
  • Improper procurement practices (e.g., accepting bribes, collusion with suppliers to inflate prices in violation of contracts, etc.)
Procurement Department
Information security
  • Inadequate digital information security leading to external breaches
  • Incomplete data protection, data loss
  • Insufficient software and hardware maintenance leading to disruptions
Information Technology Department
Human resources
  • Insufficient or excessive human resources
  • Poor labor-management communication leading to labor disputes, protests, or riots
  • Failure of recruitment and talent retention plans
  • Lack of planning or inadequate education and training
Management Department (Human Resources)
Environmental and operational safety
  • Occupational health and safety leading to property and personnel damage
  • Improper chemical management
  • Failure to comply with local regulations on environmental protection, waste, water, air, noise, fire, etc., leading to shutdowns
Management Department
Legal compliance
  • Risks arising from non-compliance with relevant laws and regulations, including but not limited to labor laws, company laws, securities trading regulations, import and export regulations, etc.
  • Non-compliance with regulations such as industry codes of conduct, anti-corruption, and anti-monopoly regulations, confidentiality, contracts, etc., leading to company losses
Management Department, Intellectual Property Team
Intellectual property
  • Patent application and protection
  • Suspected infringement
Intellectual Property Team
Internal control
  • Risks arising from the company's failure to implement internal controls or failure to comply with regulations
Entire company, Audit Department
Financial Risks Financial
  • Financial risks from the market
    1. Exchange rate risk
    2. Interest rate risk
    3. Pricing risk: Low or negative profit products leading to company losses
  • Liquidity risk: Insufficient cash or short-term assets to repay short-term liabilities
  • Credit risk
    1. Overdue accounts receivable and other receivables leading to bad debts
    2. Losses from lending funds and endorsement guarantees
Finance Department
  • Risk of default occurring in financial asset investments
  • Significant differences between actual and expected returns from direct or indirect investments leading to severe losses
  • High-leverage investments in derivative trading
Finance Department
Others Other risks not mentioned above
  • Natural disasters, epidemics
  • Extreme events such as terrorist attacks, wars, etc.
Establishment of risk project teams

Note: The functional units (responsibility units) for managing various types of risks may change depending on practical circumstances, organizational adjustments, and appointments by the highest risk authority.

Risk Management Organizational Structure

The implementation of risk management-related operations will be carried out by relevant units and personnel based on the sources and types of risks. In addition to following existing management structures and internal control systems, unit managers will collaborate with other units according to assigned project responsibilities. The planning department is responsible for summarizing the risk management situation and reporting upwards within the authority.

Types of risks Risk identification Risk control measures
External risks Tariff regulations on Sino-US trade
  • Transferring partial production from mainland China back to Taiwan and investing in automation equipment to reduce the need for manpower.
Internal operations Financial
  • Please refer to the financial annual report under the section 'Financial Position and Risk Factors'.
  • Measures to address the short-to-medium-term depreciation trend of the group's primary foreign currency, the US dollar.
Supply chain
  • Supplier education and training, ensuring that products and supply chains do not contain minerals from conflict-affected areas, and managing and providing guidance based on the characteristics and risk levels of suppliers.
Product quality
  • Standardizing and strengthening technical designs in accordance with the standards of brand customers.
Occupational health and safety
  • Compliance with regulations and formulation of relevant management measures; regular promotion of occupational safety and fire drills in accordance with legal requirements.
Digital information security
  • Regularly conduct internal audits of information security to verify the implementation status of information security management.
  • Establishing hardware and software facilities for information security technology, regularly updating them, and preventing hacker intrusion and internal confidential loss.
Others Counter-terrorism and customs cargo security
  • By obtaining the Authorized Economic Operator (AEO) certification, the Group gains the trust of customers and customs in the security of its import and export cargo movement. It also enjoys expedited clearance and very low inspection rates.

The risk management procedures were approved by the board of directors on December 23, 2020. Starting from 2021, the report will be presented at the last board meeting each year. The latest risk management report was completed and presented to the board on December 21, 2023. For detailed report content, please click the link below to download.

Implementation of the Ethical Corporate Management Best Practice Principles

1. Establishment of Integrity Operation Policy and Plan
  • The company has formulated the “Integrity Operation Procedures and Code of Conduct” in accordance with the integrity operation guidelines for listed and OTC companies.
  • Upon the arrival of new employees, they are informed of relevant company regulations, and violations may result in disciplinary actions from the company, with severe cases leading to contract termination.
2. Implementation of Integrity Operation
  • Before establishing business relationships with others, the company conducts assessments of the legality, integrity operation policies, and any records of dishonest behavior of agents, suppliers, customers, or other business entities to ensure fair, transparent business operations without soliciting, providing, or accepting bribes.
  • The management department of the company is responsible for promoting the company’s integrity operation, maintaining the policy of honest operation, and periodically reporting to the board of directors.
  • The directors of the company uphold a high level of self-discipline. In cases where there is a conflict of interest with the resolutions listed by the board of directors, or with their own interests or those of the legal persons they represent, which may harm the interests of the company, they may state their opinions and answer questions but refrain from participating in discussions, abstain from voting, and may not act on behalf of other directors.
  • When employees of the company encounter conflicts of interest with themselves or the legal persons they represent during the execution of company business, they are required to report relevant matters to their immediate supervisors and the dedicated department of the company simultaneously. Immediate supervisors should provide appropriate guidance.
  • The company has established an internal control system to ensure the continuous effectiveness of its design and implementation. Audit personnel conduct annual reviews and revisions to establish good corporate governance and risk management mechanisms.
  • Although the company does not regularly conduct internal or external education and training on integrity operation, the “Integrity Operation Procedures and Code of Conduct” have been posted on the company’s internal website for dissemination. They are also available on the company’s website and public information disclosure platform for external stakeholders such as investors to be aware of.
3. Operation of the Company’s Whistleblowing System
  • The company has established a reporting system internally and externally to receive reports of any illegal or unethical incidents. An independent dedicated unit is responsible for investigation, and the identity of the whistleblower and the content of the report are kept strictly confidential.
  • When handling related matters, the company pays special attention to maintaining the confidentiality of the whistleblower to prevent undue treatment.
  • While the company has not implemented measures to protect whistleblowers from improper treatment due to their reports, it provides comprehensive protection to whistleblowers by not disclosing their names and other relevant information to ensure investigation quality and prevent whistleblowers from facing unfair retaliation or treatment.
4. Strengthening Information Disclosure
  • The company has set up a website to disclose company profiles and regularly publishes relevant information on the public information disclosure platform on time.

The status of integrity operation is reported annually at the last board meeting, and the latest integrity operation report was completed and presented to the board on December 21, 2023. For detailed report content, please click the link below to download.

Implementation of Material Information Processing and Prevention of Insider Trading

Our company has established the ‘Internal Procedures for Handling Material Information’ and the ‘Measures for Preventing Insider Trading’ to prohibit insiders from trading securities based on undisclosed information in the market. These serve as the basis for our significant information processing and disclosure mechanisms, and are publicly available on our company’s website for reference. We also conduct periodic reviews of these regulations to ensure compliance with current laws and practical management needs.

Implementation of Insider Trading Prevention Measures:

1. Our company conducts annual education and promotion on the ‘Measures for Preventing Insider Trading’ and relevant regulations for current internal personnel and related colleagues. Additionally, newly appointed internal personnel receive a company-prepared briefing upon assuming their positions, covering various regulations and points of attention to facilitate compliance.
2. Starting from the third quarter of 2022, our company has conducted briefings on the provisions of Article 157-1 of the Securities and Exchange Act before the announcement of quarterly operating results, targeting internal personnel, specific position supervisors, and colleagues. The content includes reminders about the quiet period, the scope and subjects prohibited from insider trading, the scope of information that may significantly impact stock prices and its disclosure methods, penalties, and legal provisions. Internal personnel (including but not limited to the board of directors) are required not to trade company stocks during the 30-day period before the announcement of annual financial reports and the 15-day period before the announcement of quarterly financial reports, to effectively prevent insider trading.

Financial Reporting Period Board Meeting and Announcement Date Notification Prohibition of Trading Insider Stocks (Closed Period)
2022 Q3 Financial Report 2022/11/10 2022/10/17 2022/10/21-2022/11/9
2022 Financial Report 2023/3/15 2023/2/7 2023/2/13-2023/3/16
2023 Q1 Financial Report 2023/5/11 2023/4/24 2023/4/26-2023/5/12
2023 Q2 Financial Report 2023/8/10 2023/7/24 2023/7/26-2023/8/11
2023 Q3 Financial Report 2023/11/9 2023/10/20 2023/10/26-2023/11/10
2023 Financial Report 2023/3/12 2023/1/31 2022/2/7-2023/3/13
2024 Q1 Financial Report 2024/5/9 2024/4/18 2024/4/22-2024/5/10

3. Periodically, through email or notification letters, directors and internal personnel are informed to relay to the Taiwan Stock Exchange Corporation the template for ‘Violation of Securities and Exchange Act Regulations Regarding Insider Trading Reporting of Shareholding Changes by Insiders.’ It is also reminded that when benefiting from short-term trading activities, the company reserves the right to request internal personnel to attribute such gains to the company.
4. Since May 2023, our company has conducted briefings on ‘Insider Trading and Insider Related Legal Compliance’ in presentation format before each employee training session. A total of 65 sessions have been conducted.

Implementation of the Intellectual Property Management Plan

To strengthen technological growth and competitive advantage, our company has positioned its intellectual property (IP) strategy with the goal of enhancing “patent quality” rather than focusing solely on “patent quantity.” We integrate our company’s focus on technology and products with patents, aiming to create industry value and increase revenue. Additionally, in accordance with corporate governance principles and evaluation indicators, we have developed an IP management system that integrates with our operational goals and technology development strategies.

Objectives of Intellectual Property Management:
  • Achieve the planned number of patent proposals in technical areas each year.
  • Establish an internal management system for trade secret documents.
  • Conduct at least one “Employee IP Concept and Trade Secret Protection Education and Training Course.”
  • Achieve a 100% compliance rate for new employees in terms of understanding and signing obligations related to IP and trade secrets.
Intellectual Property Management Policy:
  • Adhere to corporate governance regulations to implement IP management effectively.
  • Strengthen key technologies internally and comprehensively deploy intellectual property.
  • Protect and utilize research and development achievements, enhancing trade secret protection.
  • Enhance employee awareness of IP to create IP value.

Our company executed the Intellectual Property Management Plan and reported it to the board of directors on December 21, 2023. To ensure compliance with corporate governance regulations and to link IP plans with operational objectives, the IP plan and annual execution status were disclosed on the company’s official website by December 30, 2023.

Intellectual Property Inventory and Results:
Intellectual Property Classification Patent application in progress Patent approved
Patent application in progress   4
Patent application in progress 1 3
Patent application in progress   2
Patent application in progress   14
Trade Secret Document Inventory (2023/1/1~2023/11/30)
Classification Quantity Description
New Employees 41  
Customers 4  
Supply Chain 4  
Contribution of Intellectual Property Rights to Corporate Operations:

1. Enhancement of IP Energy:

Patented technology is an important intangible asset for our company. We offer internal proposals and external application incentive measures annually to encourage R&D staff to protect their research results. Through an internal review mechanism for proposal applications, we can flexibly adjust patent application categories and countries based on the proposal’s technology, application aspects, and market trends to maximize the utility of patent protection.

2. Deepening Employee Awareness of IP:

We actively promote IP protection awareness to all employees through education and training sessions and internal seminars. Only when all staff members share the same awareness can we avoid unintentional infringement of others’ or the company’s IP rights, leading to litigation and impacting the company’s finances.

We regularly participate in and organize patent technology seminars to provide employees with guidelines for handling patent-related risks appropriately.

3. Achieving Sustainable Business Goals:

Each year, we conduct education and training for new and existing employees to promote an understanding of the importance of IP rights. We hope that all employees will work together to protect the company’s intellectual property, thereby achieving our corporate sustainability goals.

Intellectual Property Rights Risks and Countermeasures:

Our company has gradually completed various IP management systems. When facing IP disputes or litigation, we prioritize protecting the company’s market, products, technology, and customers. For example, we prioritize obtaining patents independently for core products. If necessary, we also collaborate externally or acquire patents. In response to risks, we have developed internal dispute resolution mechanisms and formulate dispute resolution strategies by analyzing technical, legal, and industrial aspects. We consider various factors, such as establishing technological barriers against competitors or avoiding infringement of others’ patents.