To established the "Outsourcing Evaluation Measures," "Outsourcing Performance Assessment Measures," "Outsourced Manufacturer Raw Material Selection Regulations," and "Human Rights, Labor Protection, Anti-Corruption, and Business Ethics Guidelines" to ensure supply chain stability and sustainable development. These policies emphasize social responsibility, environmental protection, and ethical compliance, with a focus on the following key aspects:

Selection and Evaluation of New Suppliers
New suppliers must undergo a selection and evaluation process conducted by the evaluation team, which includes compliance requirements in areas such as quality management, environmental standards, labor protection, and occupational safety and health management. Priority is given to suppliers certified with ISO 9001 and ISO 14001. Upon completion of the evaluation, qualified suppliers are registered on the Approved Vendor List (AVL). A supplier grading system is implemented to classify and manage suppliers based on their performance, with a focus on encouraging and supporting those that excel in sustainable development.

Annual Evaluation of Qualified Suppliers
The company conducts on-site or written assessments of qualified suppliers annually. Suppliers who fail the annual evaluation must implement corrective actions within a specified period and reapply for review. If they fail the re-evaluation, their supplier qualification will be revoked. The evaluation process covers not only quality management, design/manufacturing process management, documentation, equipment maintenance and calibration, and warehouse management but also green product management and assessments across environmental, social, and governance (ESG) aspects. In 2024, a total of 13 suppliers underwent the annual evaluation, all of whom successfully passed.

Supplier Performance Assessment
The supplier evaluation team is composed of the Quality Assurance Department, Production Management Department, and relevant engineering departments. The assessment criteria include quality, delivery time, pricing, and engineering cooperation, and it is conducted for qualified suppliers. The evaluation results are communicated to suppliers every six months and shared with the Production Management Department as a reference for future order allocation.

Human Rights and Labor Protection
All suppliers must comply with fundamental labor rights, ensuring the absence of child labor, forced labor, and discrimination, while committing to providing a safe working environment. Suppliers are required to regularly submit reports on the implementation of human rights protection and are subject to periodic audits and supervision.

Anti-Corruption and Business Ethics

1. Suppliers must adhere to principles of integrity in business operations, prohibiting any form of bribery and corruption.
2. ll suppliers are required to sign an anti-corruption agreement and commit to maintaining integrity and transparency throughout their collaboration with the company.

 

Selection and Evaluation of New Suppliers
One new supplier each in 2023 and 2024 successfully passed the selection and evaluation process through the relevant assessment reviews.

Annual Evaluation of Qualified Suppliers
In 2023 and 2024, annual evaluations were completed for 15 and 13 suppliers, respectively, with all evaluations successfully finalized.

Supplier Performance Assessment
In 2024, the evaluation team reviewed a total of 18 key suppliers. Among them, 15 suppliers received a rating of B (Good), while 5 suppliers received a rating of C (Satisfactory). For the 5 suppliers with a C rating, corrective actions were requested to address the areas where points were deducted..

Green Procurement Implementation
All suppliers are required to complete a declaration of non-use of prohibited/restricted substances, an environmental management material control specification, and a self-declaration form. In 2024, the company's green procurement ratio reached 100%. Suppliers provided products that comply with RoHS and REACH standards.

Human Rights and Labor Monitoring
In 2024, all suppliers signed agreements to uphold human rights and protect labor rights. Through annual audits, we ensure that all suppliers comply with human rights protection standards. For suppliers found to be non-compliant, a 3-month corrective action period is set, and dedicated personnel are assigned to monitor the progress of the corrective actions.

Anti-Corruption and Business Ethics Enforcement
In 2024, we completed signing anti-corruption and business ethics agreements with all suppliers. Through annual audits, we ensure that all suppliers comply with the terms of the agreements. Additionally, an anonymous reporting mechanism has been established, allowing supplier employees to report potential misconduct while ensuring the protection of the whistleblower's identity.