京元電子

ESGOverview Letter from the Management Stakeholder area Corporate Governance Sustainable Value Chain Environmental Friendliness Employee Care Social Participation Sustainability report

Identify the Stakeholders

Considering the Company's industry characteristics and business model, King Yuan Group assigns the Sustainable Development Committee to refer to the five major principles of the AA1000 Stakeholder Engagement Standard (SES 2015): Dependency, Responsibility, Tension, Influence, and Diverse Perspectives to identify groups or organizations that have an impact on or are impacted by King Yuan Group. The Committee has identified seven categories of stakeholders directly related to the Company, including employees, customers, investors, suppliers, contractors, the community, and government agencies.

Communication between Stakeholders

To understand and respond to stakeholders' concerns, we provide various communication channels for regular meetings and conversations with stakeholders, allowing them to raise their opinions at any time. This helps us understand the ESG issues that different stakeholders care about and provide answers or response strategies. The communication system and concerns of each stakeholder for year 2023 are summarized as follows:

Stakeholder	Communicaton Topic	Communication Channel	Frequency
Employees	‧ Recruitment ‧ Vacation system ‧ salary bonus ‧ career development ‧ Employee physical and mental health ‧ Labor-management communication	Labor-management meeting	Quarterly
		Staff symposium	Quarterly
		Symposium for new employees	Quarterly
		Symposium for foreign employees	Every 6 months
		Department meeting	Weekly/Monthly
		Improvement proposal system	Occasionally
		Grievance Handling Committee	When needed
		Personnel Review Committee	When needed
		Employee Message Board	Permanent
	‧ Employee engagement	Employee questionnaire	Every 2 years
	‧ Employee benefits	Year-end banquet	Every year
	‧ Welfare committee activities	Welfare committee meeting	Quarterly
	‧ Welfare committee activities	Employee representative meeting	Permanent
	‧ Club activities	Trade Union Committee	When needed
	‧ Accident and work injury management	Occupational Safety and Health Committee	Quarterly
	‧ Workplace safety	Occupational Safety and Health Committee	Quarterly
Customers	‧ Corporate Social Responsibility ‧ Customer Commitment and Services ‧ Firefighting equipment installation and management ‧ Disaster prevention and emergency contingency ‧ Waste Management ‧ Environmental protection and safety and health related regulations and laws ‧ Environmental Protection ‧ Customer Privacy ‧ Customer Relations Management	Customer Satisfaction Survey	Annually
		Customer Questionnaire	Unscheduled
		Email	Unscheduled
		Customer document release	Unscheduled
		Customer audit	Unscheduled
		Company website	Unscheduled
Investors	‧ Operational Size ‧ Corporate Governance ‧ Financial performance ‧ Market image	Market Observation Post System	Unscheduled
		Domestic and international investment forums	Unscheduled
		General meetings of shareholders	Annually
Suppliers	‧ Hazardous substance management ‧ Responsible Business Alliance Code of Conduct ‧ Procurement policy ‧ Integrity management and practice ethics ‧ Source of mining acquisition and employees’ rights	Supplier Meeting	Unscheduled
		Supplier Audit	Unscheduled
		Supplier risk assessment	Monthly
Contractors	‧ Factory safety and health operation requirement ‧ Sign letter of guarantee	Contractor Negotiation Meeting	Monthly
Contractors		Email	Unscheduled
Community	‧ Industry-Academic Cooperation ‧ Care for disadvantaged ‧ Social welfare	Courses and visits	Unscheduled
		Response from neighborhood chief	Unscheduled
		Sponsoring art and cultural activities	Unscheduled
Government Agencies	‧ Overall education and training quality ‧ Corporate governance ‧ Regulation conformity ‧ Financial information transparency ‧ Policy cooperation ‧ Waste management ‧ Disaster prevention and emergency contingency ‧ Hazard substance/dangerous articles management ‧ Machinery equipment safety and management ‧ Waste water discharge and management ‧ Greenhouse gas management ‧ Green energy purchase and energy management	TTQS Assessment	Unscheduled
		Letter of correspondence and email	Unscheduled
		Propaganda meeting/briefing	Unscheduled
		Promulgated Decree	Unscheduled
		External Official Document	Unscheduled
		Surveys on the status of employees' vaccination against COVID-19	Unscheduled
		On-site inspections	Unscheduled
		Public Hearing for Regulations	Unscheduled

Sorting the order of priority report by most significant impact

During the reporting period, a total of 26 sustainability issues were identified. We send out questionnaires to senior executives of the Group, members of the Sustainable Development Committee, and external stakeholders to evaluate the positive and negative impacts of various sustainability issues. Internal personnel assess the impact on the Company's operations, while external stakeholders assess the effect on the environment, society, and human rights (people).

In 2023, 354 questionnaires were collected, with 297 valid responses after excluding invalid ones, with 38 internal and 259 external responses. After calculating the positive and negative impact scores for each issue on the Company's internal and external stakeholders, we ranked the total impact scores from highest to lowest (external negative average, internal negative average, internal positive average, external positive average). Then, the Sustainable Development Committee set the "top one-third of the total scores" as the materiality threshold and selected eight major issues for the current period. Additionally, considering that greenhouse gas emissions and supply chain management are also issues that the Group and the semiconductor industry should place more emphasis on, these two issues were included in the management of major issues. Therefore, there are ten major issues for 2023.

2023 List of Major Issue

Major Issue	Corresponding GRI Topic	Major Issue	Corresponding GRI Topic
Economic Performance	GRI 201-1	Energy	GRI 302, 302-3, 302-4
Integrity Management	GRI 205-2, 205-3, 206-1	Greenhouse Gas Emission	GRI 305-1~305-5
Information Security	GRI 418	Employee Recruitment and Retention	GRI 2-7, 2-8, 202-2, 401-1
Customer Relationship Management	-	Employee Career Development	GRI 404
Supply Chain Management	GRI 308, 414	Employee Diversity and Equality	GRI 405

Contact Information for Stakeholders