Goal

The goal of corporate governance is to safeguard shareholders' rights and interests, improve information transparency, and comply with laws and regulations. The company has established an effective management mechanism to enhance efficiency, while strengthening the functions of the BOD and internal auditing systems, establishing rewards and punishments system consistent with responsibilities. We expect to achieve the ultimate goal - Corporate Sustainable Development, through sound corporate governance and implementation of integrity policy.

Principles of Establishment and Status of Implementation
1. Principles of Establishment

a. Improve transparency and reveal material information in real time.
b. Establish mechanisms for benign interaction and power checks and balances between the BOD and the management.
c. Maintain the proportion of independent directors.
d. Form an audit committee to review major proposals and maintain the independence and fairness of certified accountants.
e. Form a remuneration committee to review and improve the remuneration system for directors and managers.
f. Make a specific and clear dividend policy.
g. In Shareholders’ meeting, vote on a case-by-case basis and promote the e-Voting to fully implement the exercise of shareholder rights.
h. Make corporate governance rules, uphold the principle of integrity and implement internal audit mechanisms.

2. Status of Implementation

In 2020 Shareholders' meeting, the company has re-elected directors and formed a new BOD, a new audit committee and a new remuneration committee. All new directors and committees will perform their duties to implement corporate governance.
The BOD meeting of 2020 November passed to appoint Mr. Dai, Zhihao, a deputy manager of the accounting dept. to concurrently sever as the chief corporate governance officer (CCGO). The responsibilities of the CCGO include providing information requested by directors, handling related matters of the BOD and Shareholders' meeting, handling company registration and changes, preparing minutes of the BOD and Shareholders' meeting, to facilities the smooth operation of corporate governance.
The audit office is directly under the BOD. The appointment and removal of the audit supervisor is approved by the BOD. The purpose of internal audit is to check and evaluate the reliability, efficiency and effectiveness of the company's operating records and internal control, and provide suggestions for improvement to the BOD and audit committee on a regular basis, in order to improve the internal control system and increase operating efficiency.

Risk Management

To prevent employees, properties, and operating activities might be affected by accidents, natural disasters, and changes in the international economic which results interruption of operations and damage to sustainably operation. The Corporate Governance Issues Unit of CSR Committee has assessed and identified risk issues that may have an impact on the company’s operations, and provides countermeasures to each business units. So they can formulate contingency plans, practice and review regularly, and improve the ability to respond to risks in order to reduce possible harm and loss .

Accident Response Team

In the event of an emergency or major incident, the general manager will be the commander to form a crisis response team which member include managers from Admin. Dept., Human Resources, Legal Dept., and Fiance Dept. to coordinate resources and respond quickly. The team will review departments affected, extent of damage, and draft response plans quickly. When decisions are made, the company will announce immediately to maintain the transparency.

2021 Risk Issues
Category
Related Issues
  • Category
    Accidents
    Related Issues
    Fire、Factory accidents、Leakage of hazard materials
  • Category
    Technologies Renew
    Related Issues
    Technologies renew and obsolete、Information and system securities
  • Category
    Natural Disasters
    Related Issues
    Flood (Water shortage)、Typhoon、Earthquake
  • Category
    Changes of Global Economic
    Related Issues
    U.S.-China trade conflicts、Geopolitical changes、Regional Trade Agreement、Changes of interest rate and exchange rate
  • Category
    Protection of Natural Environment
    Related Issues
    Emission restrictions、Environmental Protection Engagements of UN

The above risk issues have been reported to the BOD on November 6, 2020 meeting. The company will consider the impact of related issues and formulate response plans and drill plans, and review regularly to improve the plans and the ability to respond, in order to reduce the possibility of unexpected situations which might harm and impact on the company's operations.

Preventing insider trading promotion

According to the company's procedure of preventing insider trading, we shall educate directors and managers about the procedures and related laws and regulations at least once a year. Current directors and managers have be provided with relevant regulations and promotional materials for insider trading and explained relevant content after BOD meeting on November 6, 2020.