Identify and sort

Issues Concerning Stakeholders
After identifying the material issues, we further verified the internal and external impacts of material aspects on the organization and disclose them in this report in terms of their scope, boundaries, and time. We also discussed material issues with senior officers and established strategic approaches and countermeasures to strengthen communication with stakeholders.
Aspect | Material Issue | Strategic Approach | Countermeasure |
![]() Economic | • Operational strategy and future development • Corporate governance | • Draw up long-term strategic goals • Enhance information disclosures | • Invest more resources in technology innovation, quality improvement, and production cost reduction • Integrate sales and product information and strengthen the development in mainland China and overseas. • Enhance business continuity management (BCM) to strengthen the resilience of the business continuity plan (BCP). • Implement the TCFD framework to enhance climate governance. • Establish the ESG Promotion Committee to further sustainability management. |
![]() Environmental | • Legal compliance: environmental • Supplier environmental assessment • Product and service labeling | • Deepen customer and supplier relationships • Engage in the R&D and promotion of environmental protection | • Periodic review and proactive follow-up of legal and regulatory changes. • Strengthen the green supply chain and enhance supplier audit and management. • Implement the New Product (Supplier) & Transaction Change Evaluation Sheet. • Sign the Joint CSR Declaration with suppliers. • Conduct periodic internal audits, standardize operating procedures, and enforce asset information disclosure. |
![]() Social | • Customer health and safety • Labor– management relations • Occupational health and safety • Legal compliance • Customer privacy | • Enforce legal compliance and product responsibility. • Deepen customer and supplier relationships. • Create a friendly and happy workplace environment. • Establish the customer personal data protection mechanism. | • Provide communication and grievance channels for employees and proactively optimize a friendly workplace environment. • Establish the mentor mechanism to help new employees to quickly fuse with the company. • Provide employees with benefits including employee travel, health checkup, breakfast and lunch allowances, and birth allowance. • Build unfettered internal communication channels and establish the dedicated sexual harassment grievance box and employee communication box. • Add the employee assistance program (EPA) to provide care and assistance. • Enhance knowledge management to improve employee competence. • Encourage employees to exercise. • Enforce the OH&S policy • Ensure open and transparent operational information and legal compliance. • Sign the non-disclosure agreement with customers/suppliers and maintain the security of R&D collaboration information of customers/suppliers. |

Response/Engagement Result
Stakeholder | Concerned Issue | Communication Channel | Communication Frequency | Response/Engagement Result |
![]() Shareholders | • Operational strategy and future development • Corporate governance • Legal compliance: environmental • Supplier environmental assessment | • Annual general meeting of shareholders (AGM) • Periodic publishing of financial statements/annual report • MOPS • Corporate website | Annually/Quarterly | • Board meetings: 8 • AGM: 1 • Investor conferences: 2 • Revenue reports: 14 times • Publishing material information: 21 times |
![]() Customers | • Legal compliance (environmental) • Product and service labeling • Customer health and safety • Customer privacy | • Customer satisfaction • Business visit | Annually/irregularly | • Implementation of the cloud CRM system • Customer satisfaction score: 8.9 • Customer complaints: 37, 26% less than last year. • Sanctions or fines for violation of laws or regulations: 0 |
![]() Employees | • Labor–management relations • Occupational health and safety | • Employee Welfare Committee (EWC) • Employee complaint box | Irregularly | • Labor–management meetings: 4 • EWC meetings: 6 • In-house consultation by traditional medicine and Western medicine physicians: 34 times • Complaints from various channels: 0 |
![]() Suppliers | • Legal compliance (environmental) • Supplier environmental assessment | • Periodic supplier evaluation • Periodic supplier meetings | Annually | • Introduction of the Joint CSR Declaration • Inclusion of the Human Rights Assessment • 2021 response rate: 93.5% • Onsite audit and communication: 6 suppliers |
![]() External parties (government, media, NGO academic units) | • Operational strategy and future development • Corporate governance • Customer health and safety • Legal compliance (environmental) | • Periodic regulatory audits • Promoted with the relevant systems • Corporate website • Periodic press release • Industry–academia exchange | Irregularly | • ESG report • Corporate press room: 35 releases • Industry–academia collaboration contract: 1 • Group chairperson column • Sanctions or fines for violation of laws or regulations: 0 |

Strategic Approaches and Countermeasures Corresponding to Material Issues
The working team reviewed the differences of material issues in the previous report, improved the understanding of stakeholder needs, and addressed and communicated such needs. The working team reviewed the report after completion, included the compilation results as the important reference for the next-year report, and ensured that the issues concerning stakeholders were fully disclosed with correct and appropriate information.
Aspect | Material Issue | Indicator | Employees | Shareholders | Customers | Suppliers | External | Corresponding Section |
![]() Economic | Operational strategy and future development | GRI 201-1 | ■ | ■ | • 1.1 Current status and development | |||
Corporate governance | GRI 102-21 | ■ | ■ | • 1.1 Current status and development • 2.4 Commitment on CSR realization | ||||
![]() Environmental | Legal compliance: environmental | GRI 307 | ■ | ■ | ■ | • 3.1 Compliance with international quality management standards • 3.2 Promotion of supplier collaboration and management | ||
Supplier environmental assessment | GRI 308 | ■ | ■ | • 3.2 Promotion of supplier collaboration and management | ||||
Product and service labeling | GRI 417 | ■ | • 3.3 Strengthening customer service | |||||
![]() Social | Customer health and safety | GRI 417 | ■ | ■ | • 3.3 Strengthening customer service | |||
Labor–management relations | GRI 401-1 GRI 401-2 GRI 401-3 | ■ | • 4.1 Employee structure and talents recruitment • 4.4 Salary and benefits | |||||
Occupational health and safety | GRI 403-2 | ■ | • and talents recruitment • 4.2 Promoting the development of knowledge management capability and diversifying training and education • 4.3 Transparent and impartial performance evaluation | |||||
Legal compliance | GRI 419-1 | ■ | ■ | • 3.1 Compliance with international quality management standards • 3.2 Promotion of supplier collaboration and management | ||||
Customer privacy | GRI 418 | ■ | • 3.3 Strengthening customer service • 3.4 Customer satisfaction survey and customer complaint handling |
