Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development

Governance Achievements

• Amendment to the “Sustainable Development Best Practice Principles”

Climate Goals & Targets

Environmental Challenges

• Rapid changes in the entire international trade environment and many uncertain factors affecting order status.

Mitigation Strategies

• Closely monitoring the latest changes in the market environment, customer operations and overall industry development trends.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption per unit of product by 8.14% in Shanghai factory and 10% in Hefei factory compared to 2021.
• Shanghai factory reduced total water consumption from 121,899 metric tons in 2021 to 107,296 metric tons in 2022.
• Hefei factory reduced hazardous waste from 180 metric tons in 2021 to 174 metric tons in 2022.
• All factories passed ISO14001 environmental system management certification.

Social Achievements

• Established RBA-2001RBA System Control Program in accordance with the Responsible Business Alliance (RBA) Code of Conduct.
• Average proportion of female employees increased from 46% in 2021 to 48% in 2022.
• Total training hours for Shanghai and Hefei factories were 7,570 and 6,565 respectively in 2022.
• Implemented employee benefits such as canteens, transportation, dormitories, allowances, subsidies, and regular health checks.

Governance Achievements

• Established Audit Committee and Remuneration Committee.
• Implemented Board diversity policy, with 3 female directors out of 9.
• Conducted annual performance evaluation of the Board of Directors.
• Evaluated CPA independence annually.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in interest rates, exchange rates, and inflation.
• Concentration risk from top five customers accounting for about 50% of operating revenue.
• Risks related to centralized input and output undertakings.
• Potential risks from changes in government policies and laws.
• Impacts of changes in science and technology, including ICT security risks.
• Potential risks from mergers and acquisitions.
• Risks from expansion of plant buildings.
• Risks of violating intellectual property and patent rights.
• Potential decrease in average sale price.
• Risks associated with operating in multiple countries with varying legal and regulatory environments.

Mitigation Strategies

• Minimized reliance on loans to reduce interest rate risk.
• Natural hedging effect from US dollar denominated transactions to mitigate exchange rate risk.
• Continuous credit evaluation of customers and diversification of customer base.
• Close monitoring of domestic and foreign policy and legal changes.
• Investment in R&D and maintaining a stable financial structure.
• Implementation of comprehensive ICT security measures.
• Careful evaluation of merger and acquisition plans.
• Active development of new customers and R&D of new products to maximize capacity expansion benefits.
• Establishing backup supply chains and maintaining good relationships with suppliers.
• Implementing flexible low-cost business model and developing innovative products to mitigate price pressure.
• Proactive monitoring and compliance with intellectual property laws and regulations.
• Addressing legal and regulatory differences across operating regions through compliance measures and legal counsel.

Supply Chain Management

Responsible Procurement

• Supplier Social Responsibility Assessment Form to evaluate environmental protection, occupational safety and health, and workers’ human rights.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte & Touche