Product Quality Control

To ensure effective procurement operations, maintain stable and long-term supplier relationships, foster mutual prosperity, and guarantee the high quality of supplier-provided goods, this company has established the "Supplier Management Procedure." This procedure applies to all suppliers of raw materials and other supporting vendors involved in preparing raw materials for production.

Suppliers are evaluated based on four criteria: quality, delivery, coordination, and service. Suppliers with a total score of 80 or above are classified as Grade A; those with a total score between 60 and 79 are classified as Grade B; and those with a total score below 60 are classified as Grade C. Grade A and B suppliers are considered qualified and will be registered as such by the procurement department. Grade C suppliers are considered unqualified and will be required to submit corrective and preventive measures for re-evaluation. If the re-evaluation fails, the supplier will be removed from the list of qualified suppliers and procurement will be suspended.

Due to the impact of the COVID-19 pandemic, supplier audits were not conducted from 2020 to 2022.

When requesting the procurement of raw materials, instruments, equipment, or engineering projects, the relevant units must select the "Health and Safety Regulations" checkbox on the requisition form if such requirements are applicable. The procurement department shall include these health and safety requirements in the purchase order or contract and require suppliers or contractors to provide the necessary information or certifications. Upon receipt or acceptance of goods, the health and safety requirements shall be verified on the receipt form or project/equipment acceptance form.

In accordance with international standards such as the United Nations Guiding Principles on Business and Human Rights, the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, and the Universal Declaration of Human Rights, the company has established a Supplier Code of Conduct. Suppliers are required to sign a written commitment letter to ensure compliance and strictly adhere to the management regulations of the Sustainable Responsibility Management Measures and fulfill their corporate social responsibility.