To ensure steady operation and sustainable development, the Risk Management Policy and Procedures were stipulated by the Board of Directors on February 27, 2020 based on the Regulations Governing Establishment of Internal Control Systems by Public Companies promulgated by the Financial Supervisory Commission. The Procedures stipulate the Board of Directors, Audit Committee, Auditing Office, President and President’s Office, individual risk management units, and subsidiaries shall together participate in, promote, and implement relevant risk management measures.
Risk Management Organization Structure and Risk Management Categories
The year 2020 witnessed the beginning of the status on risk management reported to the board of directors every year.
The 2022 status was reported to the board of directors on November 4, 2023, and the report details are tabulated as below.
Risk Management Status Report in 2022
The 2021 status was reported to the board of directors on January 11, 2022, and the report details are tabulated as below.
Risk Management Status Report in 2021
The 2020 status was reported to the board of directors on January 22, 2021, and the report details are tabulated as below.
Risk Management Status Report in 2020
Walsin Lihwa implemented the Taiwan Intellectual Property Right Management System (TIPS) to Hsinchuang plant this year in addition to Yenshui plant and headquarter in 2021. For the purpose of improving the internal control of intellectual property management, Walsin Lihwa kept promoting and executing the TIPS in all plants in 2022. The intellectual property right management policies and the targets are planned according to the TIPS regulation 5.2 and 5.3. The implementation status and annual plan are reported at a board meeting on November 4, 2022.
※ The targets and implementation status according to the intellectual property right management policies, are listed in the “Annual implementation status and achievement” section.
No. | IP Management Targets | Implementation Status |
---|---|---|
1 | 11 patent applications filed before end of 2022 | 11 patent applications are filed before October, 2022. |
2 | Promoting integration of R&D process and patent application process | Revise the patent management measure to fit patent application process to R&D process both in Yenshui and Hsinchuang plant. |
3 | To organize training sessions to all employee with topics of intellectual property and TIPS | Online training sessions of intellectual property and TIPS were provided to all employee at 7th, March. |
4 | To organize training sessions to all employee with topics of trade secret and confidentiality | Online training sessions of trade secret and confidentiality were provided to all employee at 21th, March. |
5 | Made an inventory of confidential documents and trade secrets management | Microsoft sensitivity labels were introduced to improve confidentiality protection from 1st, August. The confidential documents was checked during August, 2021. |
6 | Report the execution status of TIPS to the board of directors and disclose it on Walsin official website | The execution status of TIPS was reported to the board of directors at 4th, November and it will be disclosed on Walsin official website before end of November. |
IP risk type | Countermeasures |
---|---|
Patent |
.Patent risk evaluation in R&D process |
Trademark | .Strengthen control power of trademark application, maintenance and usage |
Confidential information management |
.Strengthen and implement IP training for employee |
Looking forward to the future, Walsin Lihwa expects to encourage internal R&D energy, protect technology and R&D results by establishing a complete intellectual property management system. With Industry 4.0 implementation, process is gradually optimized, product innovation is promoted and upgraded, thus leads smart manufacturing and the high-value transformation strategy is realized. Furthermore, obtain the trust of financial institutions and investors by disclosing the energy of intellectual property. With complete information, customers and investors would correctly evaluate the true value and competitiveness of Walsin Lihwa. Based on Industry 4.0, stick to energy conservation and environmental protection and invent product and technology for environmental sustainability. Realize environmental friendly and society caring achievement and which meets the purpose of sustainable company operation.
The Procedures for Handling Material Inside Information and Prevention of Insider Trading of Walsin Lihwa are adopted to establish sound mechanisms for the handling and disclosure of material inside information to prevent improper information disclosures, ensure the consistency and accuracy of information released by the Company to the public, and prevent insider trading.
Moreover, to strengthen stock trading control measures, the Company may amend the Procedures for Handling Material Inside Information and Prevention of Insider Trading based on its Corporate Governance Best Practice Principle. The 2022 implementation status is tabulated as below.
Period | Board Meeting Date and Public Announcement Date | Closed Period | Prevention Measures Implemented | Note |
---|---|---|---|---|
2022 Q1 Financial Reports | 2022/5/6 | 2022/4/21-2022/5/5 |
Relevant insiders including but not limited to directors of the board emailed in advance by the Corporate Governance Director that they shall not purchase or sell, in their own names or in the name of any other person, shares of the Company that are listed on an exchange or an over-the-counter market, or any other equity-type security of the Company during the closed period. |
Also In compliance with Article 157-1 of the Securities and Exchange regarding prohibition of such purchasing or selling within 18 hours after public disclosure of material information. |
2022 Q2 Financial Reports | 2022/8/5 | 2022/7/21-2022/8/4 | ||
2022 Q3 Financial Reports | 2022/11/4 | 2022/10/20-2022/11/4 |
Walsin Lihwa has been promoting relevant laws and regulations against insider trading to its board of directors and executives above managers every year since 2019. Please refer to the following link for details.
Implementation of Internal Promotion in 2022 (online and offline courses totaling 2 hours)
Object | Course | Number of Attendees |
---|---|---|
All employees | Promotion of insider trading prevention | 1,019 |
All employees | Ethical management | 1,020 |
Directors of the board and managerial officers | Prevention of insider trading and short-term trading | 20 |
Directors of the board and managerial officers | Practice of integrity and ethics | 20 |
Report on Promotion of Insider Trading Prevention in 2022
Report on Promotion of Insider Trading Prevention in 2021
Report on Promotion of Insider Trading Prevention in 2020
Report on Promotion of Insider Trading Prevention in 2019
Supply Chain Policy
In order to implement supplier management effectively and create a sustainable supply chain, Walsin developed short-, medium-, and long-term targets based on three major aspects as shown above, and identified key suppliers based on the “CSR sustainability self-assessment form”. In the meantime, through the exchange of various information and practical operations, we continue the promotion, expand the scope and depth of sustainable management policy and resilient supply chain, and promote towards common values and goals.
Establishment of Procurement Center
For the purpose of corporate governance, integration of procurement resources and the implementation of Walsin Lihwa’s procurement culture (sunshine, sustainable, professional, efficient), the company established a procurement center in October 2022 with the goal of establishing a standardized and transparent procurement process. We use information system tools for procurement management, select long-term strategic partners, and work with them to establish a sustainable supply chain, and guide suppliers to develop the common value of corporate social responsibility.
Key Supplier Identification
To implement effective supplier management, we identified 173 key suppliers from total of 5,331 suppliers based on important raw materials, equipment and construction contracts, and waste disposal projects according to the principles of procurement amount, importance, influence, and uniqueness. This is an increase of 8 companies from 2021, accounting for 62.66% of total purchases. These suppliers will be partners in the joint promotion of a resilient supply chain and corporate social responsibility.
Supplier’s Undertaking about their Commitment to Social Responsibility
Suppliers’ Commitment to Sustainability and Self-Assessment
To strengthen and implement sustainability of supplier management, suppliers are required to fill out the “Supplier’s Undertaking” to enhance supplier awareness, and suppliers would evaluate their own management status and fill in the new version of “CSR sustainability self-assessment form “. The assessment items include economic, social, and environmental aspects. The sustainability management of suppliers is analyzed based on results of the self-assessment form, and then the probability, level of impact, and warning mechanisms for incidents that will threaten its sustainability, to identify the threat and impact of incidents that threaten the sustainability of key suppliers on Walsin Lihwa’s operations.
2022, a total of 173 key suppliers in the Wire & Cable Business, Stainless Steel Business, Real Estate Business, and Taipei headquarters business groups were issued, and 159 of Suppliers Undertaking were returned, with a signing rate of 91.91%;
161 of self-assessment questionnaires were returned, with a signing rate of 93.06%, are shown in the following table:
For more information, please visit the sustainability website: https://esg.walsin.com/zh_TW/focus/creative/sustainable