Organization for Corporate Governance
| Department |
Functions |
Server and High Power Business Unit
(abbreviated as SH Business Unit) |
Organize the R&D, business management, material purchasing, production management, and after sales services for high wattage products of the Company, such as the power supply for desktop computers, game consoles, workstations, servers, storage devices, and satellite communications. |
Mini Power Business Unit
(abbreviated as MP Business Unit) |
Organize the R&D, business management, material purchasing, production management, and after sales services for low wattage products of the Company, such as the power supply for notebooks, printers, smart homes, and consumer products. |
| LED Business Unit |
Organize the R&D, business management, material purchasing, production management and after sales services for LED application products of the Company. |
Magnetics Business Unit
(abbreviated as MAG Business Unit) |
Organize the R&D, business management, material purchasing, production management and after sales services for the magnetic component products of the Company. |
Intelligent System Technology Business Unit
(abbreviated as IST Business Unit) |
Organize the R&D, business management, material purchasing, construction management and after sales services for the smart buildings of the Company. |
| Procurement Center |
Organize the purchase of materials for various products. |
| Quality Center |
Organize the quality control, parts engineering, safety certification, and the customer management for after–sales service. |
| Technical Center |
Integrate and make flexible use of the technology resource of the Company, assist each business unit for technology development and have the technology transferred to each unit. Long-term development of new technology to accumulate the technology capability. |
| Financial Center |
Organize the finance, accounting, stock affairs, custom affairs and the import/export business. |
| Administration Management Division |
Organize the human resource, general administration, ethical management and sustainable development business. |
| Occupational Safety Office |
Discuss, plan, monitor and implement the industry safety and health management matters. |
| MIS Division |
Organize MIS and cyber security of the Company. |
| Audit Office |
Audit and evaluate the internal control system of the Company, and the implementation of all regulations and systems. |
Implementation of Board diversity
The company places a strong emphasis on gender equality in the composition of the board of directors. Currently, there are 2 female directors, accounting for 29% of the total. Each director has a wealth of education and experience, and possesses the necessary work experience and expertise required for the company's business. In summary, the policy of diversifying the board of directors has been effectively implemented.
Sustainability Development Committee
Chicony Power, in fulfilling its corporate social responsibility, is committed to respecting social ethics and the rights of other stakeholders. While pursuing sustainable operation and profitability, we place importance on factors related to the environment, society, and corporate governance. These factors are integrated into our company management and operations. We hold meetings annually in the fourth quarter to discuss these matters.
| Team |
Responsible Unit(s) |
Functions |
| Corporate governance |
President's Office,Business Department,Procurement Center,Finance Center,Administrative Management Division |
Corporate governance, sustainable operation, ethics and integrity, business performance and risk control |
| Customer relationships and supplier management |
Business Department,Procurement Center,Quality Center |
Supplier management, customer satisfaction, and product promotion by increasing visibility |
| Green products |
Business Department,Procurement Center,Quality Center,Intellectual Property Division, Technology Center |
Raw materials control, green materials, and product design |
| Environmental sustainability |
Business Department, Administrative Management Division, Procurement Center |
Pollution source management,greenhouse gas management, energy management, climate change adaptation/management, and renewable energy management |
| Employee care |
Business Department, Administrative Management Division, Welfare Committee |
Remuneration & benefits,labor management relations,talent cultivation,and occupational health and safety |
| Social participation |
Administrative Management Division,Welfare Committee |
Communication with local residents, supporting disadvantaged groups, and participation in charitable activities |
The implementation units have proposed their management/control strategies and approaches for identified and potential risks. The Company's "Sustainability Development Committee" reported to the board of director on November 2, 2023. The report included the environmental, social and corporate governance material issues related to the Company's operations, and the implementation status of corresponding risk management measures.
| Risk Category |
Potential Risks |
Management Strategies and Approaches |
| Climate Risk |
Dramatic changes in weather patterns;Production is affected by natural disasters, water shortages, or power outages |
1. The Company's factories communicate with local governments, and request to be listed as priority areas for electricity and water supply.
2. Invest resources in disaster prevention measures, and conduct regular service and maintenance.
3. Conduct Risk Effectiveness Assessment for regions where raw material suppliers are located.
4. Introduce relevant energy management systems to factories, and evaluate the possibility of renewable energy facilities installation.
5. Set flood-prevention & dewatering systems and emergency response measures in all factories.
|
| Environmental Risk |
Global warming(GHG emissions increase) |
1. Conduct GHG inventory and obtain third-party certification: The Taipei Headquarters, Suzhou Factory, Chongqing Factory and Dongguan Factory are all ISO-14064 certified.
2. Set science-based carbon reduction targets (SBT), which was approved on August 10, 2022. Continue the implementation of various energy saving and carbon reduction measures in the Taipei Headquarters and all factories.
3. Increase R&D investment in products with high energy efficiency to reduce products' carbon emissions.
4. Increase the percentage of eco-friendly materials used in products to reduce the generation of non-recyclable waste.
|
| Occupational Safety and Health Risk |
Employee workplace safety |
1. The Taipei Headquarters, Suzhou Factory, Chongqing Factory, Dongguan Factory and Thailand Factory have all obtained ISO 45001 occupational safety and health management systems certification.
2. Regular onsite patrols and inspections are carried out by the EHS teams in the Taipei Headquarters and all factories to reduce hazards and risks.
3. Conduct work environment monitoring to ensure that the workplace environment will not affect the health of employees.
|
| Fire/explosion risk |
1. Disciplinary measures have been formulated for violations of safety regulations related to electric soldering iron and high temperature heating equipment (such as heat gun, hot glue gun, etc.), and employees are required to pay high attention to fire/explosion hazards.
2. In addition to the existing management/control measures for soldering irons, the "Soldering Iron Real-name System" has been implemented from this year onwards, which requires the labels of users or keepers to be displayed to ensure that every soldering iron is well kept and maintained.
3. Adding foolproof cover to countdown timer: For the existing high temperature heating equipment that cannot automatically cool down, an automatic power off countdown timer should be installed. Moreover, in order to avoid countdown timer failure caused by operator's wrong touch when setting or switching-off the timer, protection covers have been provided for operators to use on the countdown timers to reduce the chance of wrong touch.
|
| COVID-19 pandemic |
1. Develop "COVID-19 Response & Control Plan", and designate occupational medical and nursing personnel to work with the Administrative Management Division to implement the Plan.
2. Establish a pandemic prevention reporting system for the Administrative Management Division to keep track of employees' health status in a timely manner.
3. Conduct health care and tracking for high-risk employees, and pay attention to employees' health conditions at all times.
4. Conduct regular environmental disinfection to provide a healthy environment for employees.
|
| Information Risk |
1. Information system anomalies
2. Malicious intrusion into and destruction of the system by external attacks |
1. Set up security measures such as firewall, antivirus software, cloud ATP (Advanced Threat Protection) email protection solutions, etc. for the system. IT personnel conduct regular checking and testing, and build up complete anti-intrusion and anti-virus mechanisms.
2. Detect the websites that the Company's users access, and block anomalous connections.
3. Perform firewall and internal network vulnerability scanning on a quarterly basis, and patch vulnerabilities based on the scanning report results.
4. Strengthen disaster prevention, monitoring, reporting mechanism, anomalies management, and regular disaster recovery drills as well as implement backup mechanisms.
5. Conduct quarterly advocacy of information security to raise the awareness of information security among employees. Introduce the ISO 27001 systems; the certification is scheduled to be obtained in 2023.
|
| Financial Risk |
Risks of exchange rate fluctuations |
For USD receivable / payable positions from goods purchase and sales, natural hedging through mutual offsetting shall be adopted. For USD net positions after offsetting and the possible flows generated in the future, the Company will keep monitoring the global economic conditions, stay on top of global exchange rate trends, and hedge the risks through timely forward foreign exchange transactions.
|
Ethical Management
Chicony Power adheres to the Responsible Business Alliance (RBA) guidelines and has developed a " Codes of Ethical Conduct" based on the "Ethical Conduct Guidelines for Listed and Publicly Traded Companies." This code encompasses compliance with legal requirements related to anti-corruption, bribery, insider trading, intellectual property rights, and proper information disclosure.
To enhance employees' ethical awareness and understanding of regulatory compliance, Chicony Power has incorporated the " Codes of Ethical Conduct" into mandatory training for all employees. This training is conducted annually to deepen employees' commitment to strong ethical principles. Management is expected to lead by example, and all employees are required to not only demonstrate their professional competence but also uphold the highest ethical standards.
Through annual corporate self-assessment of internal controls, Chicony Power continually evaluates employees' awareness of and adherence to the Codes of Ethical Conduct, aiming to strengthen the overall effectiveness of the internal control environment.
2023 Integrity Operation Execution Report as follows:
(1) The company has established a 'Whistleblowing Complaint Procedure' to provide employees and partners with an official channel to report unlawful activities.
(2) To strictly adhere to ethical and self-discipline standards, all colleagues have signed an 'Integrity Pledge,' and new employees do so upon joining.
(3) This year, improper benefits prohibition training was conducted for new employees, totaling 106 individuals.
(4) In line with the principle of respecting intellectual property rights, it was reiterated that colleagues are prohibited from installing unauthorized software.
(5) The company and its employees are not allowed to directly or indirectly provide, promise, request, or receive any form of improper benefits during the course of business activities. Benefits include money, gifts, commissions, positions, services, privileges, kickbacks, etc. There were no reports or complaints of improper benefit incidents this year.
(6) The definition of ethical operation has been disclosed on the official website and promoted on electronic bulletin boards on various floors.
Information Security Management
The Chicony Power Corporation headquarters has obtained ISO 27001:2013 International Standard Certification for Information Security Management Systems, valid from August 2, 2023, to October 31, 2025.You can download the certificate. ...Certificate
Customer privacy and confidential information protection is the main reason for customers' willingness to establish a long-term partnership with Chicony Power. Therefore, the Companyis committed to safeguarding customers' information and protecting the rights and interests of customers
2022 Information Security Management
1. Employees' biannual social engineering email drills and testing have been completed.
2. One online social engineering training session has been conducted.
3. No complaints about the infringement of customers' confidential information occurred in 2022.
4. No information-security-related complaint documents were received from external and supervisory agencies.
Information Security Organizational Structure:
1. To implement the standardized policies for information security management in our company, an "Information Security Management Committee" has been established to oversee related matters. The committee is chaired by the top executive of the Information Department and led by the Information Department in terms of planning. Various business units collaborate to ensure the effectiveness of our company's information security management.
2. This committee is responsible for formulating information security management policies and conducting regular reviews and revisions.
3. The committee holds regular meetings to review the progress of implementation and reports to the General Manager annually on the progress and reviews.
Information Security Management Committee Organizational Structure：
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