| Risk Category |
Potential Risk Factors |
Control Strategies and Practices |
| Climate Change Risk |
Renewable Energy Regulations (for green power) |
- ▪ We have set a target to install a green energy capacity of 6,990.45 kW, in accordance with legal requirements. This project is expected to be completed by 2024.
* Climate Change Risk follows the TCFD framework. For more details about identification, potential financial impacts and actions, please refer to Climate Change and Energy Management. |
Carbon Neutrality
(Carbon tax) |
- ▪ Strive to reduce GHG emissions at the Company's organizational boundary to cope with the cost of carbon tax at home and abroad in the future.
|
| Operational Risk |
Interruption of Public Services |
- ▪ Through hazard risk and environmental identification, evaluate the risk factors in the process of business operations, grasp the risk impact, and effectively control the same.
- ▪ Formulate the "Contingency Event Procedure" and "Emergency Response Working Instruction" to ensure the response mechanism and aftermath treatment of various emergencies (including fires/earthquakes/typhoons, etc.), maintain the safety of employees, reduce the losses related to the Company and customers, and prevent or reduce the impacts and influences on the environment.
|
| Natural Disasters |
| Major infectious diseases |
- ▪ The Company shall establish a high-level command center and an epidemic prevention team to monitor the progression of the infectious disease in real-time. This proactive approach allows for the early development and implementation of action plans to safeguard employee health and ensure smooth business operations.
- ▪ Supplier and raw material status will be closely monitored to proactively manage potential risks and implement inventory backup operations.
- ▪ Comprehensive deployment of epidemic prevention equipment and spatial planning will be implemented to prevent employee infections. Additionally, timely communication with clients will be maintained to adjust operational modes as needed.
|
| Talent Attraction |
- ▪ An effective talent acquisition system and internal talent pool will be established to provide a smooth channel for talent mobility.
- ▪ We will actively expand diverse recruitment channels, offer internship and short-term work opportunities, and collaborate with educational institutions to strengthen the connection between academia and the workplace.
- ▪ We regularly participate in external salary surveys and provide a comprehensive and fair total rewards package to attract, motivate, and retain talented individuals.
|
| Legal Compliance Risk |
Changes in Policies and Regulations |
- ▪ Follow the laws and policies, implement the identification mechanism for enforcing laws and regulations, and take appropriate countermeasures.
- ▪ Pay close attention to the changes of relevant laws at home and abroad at all times, and update relevant systems and regulations in accordance with the laws.
|
| Information Security Risk |
Information System
Abnormalities |
- ▪ Carry out information security control and management of production machines, such as asset inventories, machine anti-virus operations, strengthening the awareness of information security protection of relevant personnel, and take relevant information security control measures to improve the capability of information security protection.
- ▪ Regularly conduct disaster recovery drills for important system information, and take actions to maintain the Company's operations.
|
| External Threats |
- ▪ Introduce an information security system to prevent external intrusion (such as firewall, intrusion prevention system) and electronic data monitoring system for external storage devices, to avoid data leaks or computer viruses.
- ▪ For the information security protection of confidential documents, third-party security control software is adopted to protect and prevent the risk of leaks of customer and the Company's data.
|
| Financial Risk |
Interest Rate Fluctuation |
- ▪ During fundraising, the main consideration covers the loan interest rate condition with better loan interest rate conditions in the market and less affected by the change of interest rate.
- ▪ We conduct regular evaluations of loan interest rates and make necessary adjustments based on market average rates.
|
| Exchange Rate Fluctuation |
- ▪ Sales denominated in foreign currencies are mainly denominated in US dollars, while the payment of main raw materials and machinery and equipment is denominated in US dollars or Japanese yen. Therefore, some receivables and payables denominated in foreign currencies can be offset against each other, resulting in a natural hedging effect.
- ▪ We stay vigilant to changes in international exchange rates and actively gather relevant currency exchange information. This allows us to plan ahead and minimize any potential foreign exchange losses or gains that may affect our operational funds.
|
| Supply Chain Risk |
Supply Interruption |
- ▪ Focus on the establishment of long-term partnerships, and give priority to new suppliers with excellent reputations in relevant industries.
- ▪ Comprehensive supplier management mechanism, effectively grasping the stability of supplier supply.
- ▪ For major key materials and equipment suppliers, maintain manufacturers (two manufacturers or in at least two regions) to avoid sudden risks such as manufacturers' own operations and regional natural disasters.
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