AcBel Polytech Inc. 康舒科技

Sustainable Supply Chain

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Customer Communication

The sustainable value chain concept of AcBel combines economic growth, environmental protection, and social responsibility. Through collaboration and innovation with customers and suppliers, AcBel is committed to achieving ESG sustainable development goals in areas such as technological innovation, quality assurance, environmental protection, smart manufacturing, human rights protection, low-carbon environmental protection, and health and safety. This commitment aims to create shared value and benefits.

AcBel actively participates in customer-organized supplier meetings or training courses to understand their requirements and expectations regarding RBA regulations, human rights, carbon reduction targets, renewable energy use, recycled materials use, hazardous chemical management, and conflict minerals. AcBel proactively develops response plans in advance to enhance the company's performance in sustainability goals.

To understand the satisfaction of our customers regarding the quality of products and services provided by AcBel, we regularly conduct customer satisfaction surveys among our key customers. The feedback received from these surveys serves as a crucial reference for continuous improvement of our products and services, ensuring that our customers receive high-quality offerings. It also helps us foster long-term collaborative relationships with our customers.

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Over the past three years, customer satisfaction has gradually improved across all evaluation categories. We have also identified items with lower scores in the 2022 customer feedback and have proposed improvement plans for these specific items.
1. Service Quality: Enhance support between production bases to provide customer service in proximity or assign AcBel personnel to be stationed at customer sites, ensuring timely customer assistance and reducing wait times.
2. Material Procurement: Actively develop second suppliers (2nd source) or alternative materials at each operational base to avoid delays in material supply that could impact delivery schedules. This approach can also help reduce material costs, enabling price adjustments and increasing customer satisfaction.
3. Product and Technical Quality: Utilize cross-site technical resources to improve research and development capabilities, shorten development cycles, and strive for customer recognition.

AcBel has established a dedicated department to handle customer feedback and analysis. In 2022, the top three feedback items were "Material Quality," "Process Control," and "Design Quality," accounting for a total of 92%.
1. Risk Assessment during Trial Production: Strengthen risk assessment during the trial production stage, prior to full-scale manufacturing. Identify potential factors that may impact quality and implement corresponding control measures to mitigate quality risks.
2. Strengthen Process Management Procedures: Establish and implement process management procedures, including standard operating procedures (SOPs) and personnel training, to ensure product consistency and quality control.

Starting from 2023, AcBel will adjust the customer satisfaction survey to an online questionnaire, providing a more convenient way for customers to participate. This change aims to expand the survey scope and collect more opinions and feedback from customers, effectively increasing the response rate. AcBel promptly analyzes the issues and demands raised by customers, and requests relevant departments to review and improve accordingly. Improvement action plans are then submitted to address the identified issues for enhancement. This ensures that customer feedback receives appropriate attention and response, ultimately aiming to enhance customer satisfaction.

Supplier Management

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AcBel collaborates with its supplier partners to build a low-carbon sustainable supply chain, establishing share values and consensus to ensure adherence to the same ethical and responsible principles throughout the operational processes. The goal is to avoid the use of any raw materials that violate human rights or harm the environment in any form.

AcBel actively implements three initiatives under the RBA framework, namely the Responsible Minerals Initiative (RMI), Responsible Labor Initiative (RLI), and Responsible Factory Initiative (RFI), as part of its operational management. These initiatives extend to the management of sustainable supply chains.

We establish long-term partnerships with suppliers to assist them in enhancing their sustainability resilience in environmental, social, and governance aspects. Together, we address the challenges of sustainable development. Through sustainable supply chain management, we strive to achieve a balance between environmental protection, social responsibility, and economic benefits. This approach helps mitigate supply chain risks and enhances the overall resilience of the supply chain. We also develop supplier codes of conduct and conduct audits and assessments to ensure that suppliers meet AcBel's sustainability requirements and standards.

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AcBel mainly engages in the manufacturing of power supplies, and if we analyze the overall procurement amount, semiconductors account for the highest proportion at 33.8%. In 2022, the main procurement items were semiconductors, hardware components (both large and small), wires, fans, and connectors, which accounted for a total procurement amount of 78.10%. Due to the increased proportion of semiconductor procurement, the proportions of the top few component procurements have slightly increased compared to 2021.

Shanghai Sino Hardware specializes in the production of metal stamping parts, and its main procurement items are metal raw materials, auxiliary materials, and stud bolts. The analysis shows that Wujiang and Tongliang Factories account for 91.95% and 92.56% of the procurement amount, respectively. On the other hand, Kanghua Plant, due to process differences, has the highest proportion of 76% in the procurement of chemical solutions.

In 2022, in terms of supplier locations, for AcBel, the majority of its component supply chain is located in Taiwan and China, accounting for 90.27% of the total. As for SINO’s three factories, which focus on hardware components, the suppliers are primarily based in China, considering the transportation of metal materials. The proportion of supplier locations remained relatively stable compared to 2021.

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Due Diligence Investigation on Human Trafficking and Anti-Slavery Laws

AcBel places a strong emphasis on the overall human rights responsibility in its supply chain. Recognizing the increasing global attention to human rights issues, AcBel has initiated an investigation on human trafficking and anti-slavery laws to ensure that suppliers comply with international human rights standards during raw material extraction, production, or manufacturing processes.

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