京元電子

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

Sustainable Value Chain

Supply Chain Supervision System

The supply chain management team and organization are structured under the Sustainable Development Committee, which regularly reports to the General Manager of the top management and the Board of Directors.
The supply chain management organization comprises the Material Department, Quality Assurance Department, Occupational Safety & Risk Management Department, and Human Resources Department, all concerned with social issues regarding environment, labor, health, and safety among suppliers.

Supply Chain Audit Results

In 2023, the Company had 895 qualified suppliers, including 17 new ones. By the end of the year, the Company completed annual audit operations for 66 suppliers and conducted environmental and social impact assessments for 66 suppliers.
Number of KYEC Group's sustainable risk auditors in the past three years:

RBA Audit Results for Tier 1 Suppliers

The Company categorized non-compliance issues identified during RBA audits into priority non-compliance issues and other non-compliance issues to plan appropriate corrective actions. According to the Company's 2023 audit results, no serious violations or significant deficiencies requiring immediate reporting were found among suppliers. All suppliers completed corrective actions for their deficiencies within the specified deadlines.
2023 Sustainability Audit Finding and Improvement:

Negative Impact spects	Deficiency Category	Subject	Deficiency and Risk	Corrective Measures and Response Strategies
Social	Labor	No forced labor	Failure to establish work regulations prohibiting forced or bonded labor	Include relevant provisions in the employee code of conduct and issue announcements
	Labor	Child Labor	Failure to establish work regulations prohibiting employing child labor (under 16 years old), misapplication of remedial measures, and failure to establish regulations to protect minor workers	Include relevant provisions in human resource management regulations, establish remedial measures, and issue announcements
	Health and Safety	Response Preparedness	Lack of a comprehensive plan that clearly defines the notification procedures, time, and contact persons that meet customer requirements when a supply interruption occurs	Redefine procedures, internalize customer requirements, and incorporate them into management review meetings
Economic	Ethics	Integrity Management	Failure to establish work regulations prohibiting offering or accepting bribes or other forms of obtaining improper benefits	Convene meetings for promotion and include relevant provisions in company work regulations
Environment	Environment	Pollution Prevention and Resource Protection	Lack of leakage prevention measures in chemical storage areas, posing pollution risks to sewers and soil	Immediately place leakage prevention equipment in the area and check the integrity of related equipment
	Management System	Communication	Aside from new recruits, statutory safety and health education training must also be provided for existing workers, with training hours meeting legal standards	Conduct statutory safety and health education training, retain signature records, and include annual mandatory training subjects.
	Health and Safety	Machine Safety	The adequacy of safety shoes worn by personnel operating manual forklifts and hydraulic forklifts in the work area	Purchase appropriate safety shoes for the working environment, place them on-site, and clearly post notices in the work area

KYEC’s Supplier Code of Conduct

KING YUAN ELECTRONICS CO., LTD., its subsidiaries (collectively, “KYEC”, “We”, “Us” or “Our”), being a responsible world-class corporate citizen, have taken proactive measures to ensure the highest standards of professional and ethical business conduct. KYEC is committed to implementing sustainable development and social responsibility.

In order to ensure that working conditions in the supply chain are safe, workers are treated with respect and dignity, and business operations are environmentally responsible and conducted ethically, KYEC established this Supplier Code of Conduct ( "Code"). KYEC require our suppliers', contractors', service providers' and subcontractors' (collectively, “Suppliers”, “You” or “Your”) business conducts to strictly comply with this Code as well as laws and regulations of countries/area where suppliers' operations exist with respect to labor, health and safety, environmental, business ethics and the management system. KYEC also encourages suppliers to require their suppliers, contractors, services providers and subcontractors to adopt and comply with this Code. Suppliers' status of compliance with this Code will be one of the considerations for KYEC's evaluation of and decision making on the purchasing.

The provisions in this Code are derived primarily from the Responsible Business Alliance (“RBA”, Formerly EICC) Code of Conduct ,and are in alignment with the UN Guiding Principles on Business and Human Rights, the provisions in this Code are derived from and respect internationally recognized standards including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights.

The Code is made up of five sections. Sections A, B, and C outline standards for Labor, Health and Safety, and the Environment, respectively. Section D adds standards relating to business ethics. Section E outlines the elements of an acceptable system to manage conformity to this Code.The download link of KYEC Supplier Code of Conduct is as below.