The highest governance unit of the company is the Board of Directors, which has three functional committees: the Compensation Committee, the Audit Committee, and the Corporate Sustainability Development Committee. The Board of Directors has a sound governance structure that helps the company fully grasp business strategies and operational performance, respond to various risk changes, and create sustainable value. In 2024, the company's corporate governance performance was recognized in the 10th "Corporate Governance Evaluation," ranking in the top 6-20%. We continue to build a sound governance structure, consistently strengthening corporate governance goals, and achieving them through several internal policies.
The Corporate Sustainability Development Committee is responsible for setting and reviewing the company’s sustainability policies, systems, and related management guidelines, reporting annual sustainability performance and subsequent work plans to the Board of Directors at least once a year. The Board supervises the formulation and execution of the company’s sustainability management policies, strategies, and goals. The Board reviews the submitted reports and, if necessary, urges adjustments.
The latest meeting was held on May 6th, 2025, and the main agenda included:
1. Report on the company's sustainability performance in the first half of 2025 and expected key work to be completed.
2. Progress and outcomes of the company’s greenhouse gas inventory and verification.
3. Results of the company’s 2024 Sustainability Report.
The company has a Board-approved "Risk Management Policies And Procedures", with the General Manager responsible for overseeing the promotion and operation of the risk management plan. Various departments have designated units responsible for promoting risk management related to their respective business areas. Risk is assessed annually and reported to the Board of Directors. The company conducts risk assessments of significant issues related to the materiality principle of the sustainability report and formulates relevant risk management policies or strategies based on these assessments.
On November 4th, 2024, the "Corporate Sustainability Development Committee" and the Board of Directors reported on major environmental, social, and governance (ESG) issues and the related risk management operations and execution results.
Chicony Power has established a Code of Ethical Conduct in accordance with the RBA Code of Conduct and the Guidelines for the Adoption of Codes of Ethical Conduct for TWSE-/TPEx- Listed Companies, which encompasses required regulations related to anti-corruption, bribery, insider trading, intellectual property, proper information preservation and disclosure. To ensure the effective implementation of ethical management, the Company, prior to establishing business relationships, not only conducts a thorough assessment of the legality and ethical management policies of suppliers, customers, and other business partners but also requires suppliers to sign the Integrity Statement. The Statement clearly states that all transaction counterparties should strictly abide by the Company’s ethical management regulations without involving themselves in any kickbacks, commissions, improper gifts, or other improper advantages.
To implement ethical management and anti-corruption governance, Chicony Power conducts regular corruption risk assessments at all operation bases and incorporates internal controls and audit mechanisms management based on the characteristics of the identified risks. The Company follows its internal control system to conduct a 100% corruption risk assessment of its operation bases. The assessment scope includes the headquarters and all production bases, ensuring that the ethical risks of overall operational activities are included in the monitoring framework. The results of the risk assessment for 2024 indicate that no significant corruption risk events or high-risk units have been identified. The auditing unit has completed its review of compliance with the system and found no significant instances of fraud, corruption, or violations of ethical principles.
Chicony Power also strengthens employees' ethical awareness and professional ethical standards through the Ethical Corporate Management Best Practice Principles and the Integrity Statement signed by all staff members. The auditing unit continuously conducts random checks and verification mechanisms to ensure that the ethical policy is implemented in daily operations.
2024 Annual Statistics on Ethical Management and Prohibition of Improper Benefits Promotion:To enhance the ethical management system, the Company has established the Ethical Management Promotion Taskforce, which is jointly composed of the Administration Management Division, the Financial Center, and the Audit Office. The task force is responsible for the formulation, the supervision and implementation of the Company’s ethical management policy and prevention programs; and makes annual reports to the Board of Directors on the implementation status. In addition, the Company has established the Regulations for Reporting and Complaint-filing Management and set up a reporting and complaints mailbox, email, and hotline to ensure the effective operation of the reporting mechanism. Ethical management promotion is conducted during management meetings, and each production base continues to promote ethical management and the reporting and complaints system. The implementation status of the 2024 Ethical Management was reported to the Board of Directors on November 4th, 2024.
Key responsibilities (summary):
1. Formulating anti-fraud measures to ensure ethical business.
2. Developing measures to prevent unethical behavior.
3. Planning internal organization, staffing, and functions, ensuring mutual supervision and checks and balances.
4. Promoting and coordinating the implementation of ethical policy training.
5. Planning the whistleblowing system and ensuring its effective execution.
6. Assisting the Board of Directors and management in auditing and assessing the implementation of ethical business practices.
To safeguard the company’s reputation and protect assets, prevent corruption, theft, misappropriation, or other illegal activities, and protect the rights of the company, employees, and partners, Chicony Power provides official channels for employees and partners to report illegal activities, aiming to handle complaints effectively, deter illegal actions, and avoid the inconvenience caused by unfounded anonymous letters, thereby maintaining the company’s and law-abiding individuals' reputation and rights.
Whistleblowing Channels:1. Complaint Mailbox: 30F, No. 69, Sec. 2, Guangfu Road, Sanchong District, New Taipei City, 241
2. Complaint Email: Hotline@chiconypower.com
1. Establishment of a "Regulations for Reporting and Complaint-filing Management" outlining the whistleblowing procedure:
2. The investigation standards for whistleblowing cases are clearly defined, with the head of the Administration Department responsible for handling, investigating, and responding to complaints while ensuring the whistleblower’s identity and the content of the complaint are kept confidential.
3. Protecting whistleblowers from inappropriate treatment due to their complaints, ensuring the confidentiality of their identity and complaint content.
The company’s website includes a section on sustainable development and corporate governance, allowing stakeholders to understand the company’s sustainability progress and governance status. It also provides contact channels for stakeholders to share concerns and receive appropriate responses. The annual report to the Board includes a review of sustainability initiatives and stakeholder communication.
On November 11th, 2024, the Corporate Sustainability Development Committee and the Board reported on the company's stakeholder communication activities.
Scope: This includes employees, customers, suppliers, and related operational information and data.
Objective: To ensure information security, the company has established relevant rules and regulations, applied technology and data security standards, and integrated them into the management system to protect the privacy and security of employees, suppliers, and customers during business interactions.
1. An Information Security Management Committee (ISMC) is convened by the Chief of the Information Technology Department. The IT Department is responsible for leading and planning, while other relevant departments coordinate in execution to ensure the effectiveness of the company’s information security management system (ISMS).
2. The Committee is responsible for establishing the Information Security Management Policy and conducting regular reviews and updates.
3. The Committee holds periodic meetings to review implementation status and submits an annual report to the General Manager on the implementation results and review outcomes.
4. Dedicated Information Security Personnel: 2 persons.
A. Chief Information Security Officer (CISO): 1 person.
B. Information Security Officer (ISO): 1 person.
1. To ensure the continuous operation of the Company’s business activities and the stable availability of the information services provided by the Company.
2. To ensure the confidentiality, integrity, and availability of the information assets entrusted to the Company, and to protect the privacy of personal data.
3. To establish a business continuity plan for information operations and to conduct information-related activities in compliance with applicable laws and regulatory requirements.
In order to continuously safeguard customer privacy and the security of confidential information on the foundation of an established information security management framework, the Company implemented the ISO/IEC 27001 Information Security Management System (ISMS) in 2023 and successfully obtained certification.
