Corporate Social Responsibility

Stakeholders：Supplier

To sustainably promote the development of Advanced Optoelectronic Technology, Inc., partnerships with manufacturers in the supply chain are required. All partners must also comply with the social responsibilities of the supply chain, including green environmental protection, labor human rights and code of ethics, health and safety, risk management and moral principles, banning minerals in conflict zones, etc.

Main concerned issues

Supplier ESG Management
Supplier Code of Conduct
Compliance with Laws and Regulations

Maintain close contact with suppliers, conduct CRS inventory management at all times. To respond to the trend of the times, actively save energy and reduce carbon, provide customers with products that reduce carbon emissions, and jointly establish a sustainable supply chain.

Advanced Optoelectronic Technology, Inc. (AOT) supplier management policy

AOT has always regarded suppliers as important partners of the company’s operations. To promote corporate social culture, it considers the involvement of the overall supply chain. Besides quality and delivery, strive to urge the supply chain to value human rights, protect the environment, safety and health, and strengthen supplier ESG(Environmental, social and governance)management.

All suppliers: obtaining a valid factory registration certificate issued by a local government, according to the business category which complies with the requirements of the EICC regulations for the evaluation/audit/management of the supply chain.

Key parts supplier:
1.must pass ISO9001 quality management system certification and ISO14001 environmental management certification.

2.RoHS prohibits and restricts the use of hazardous substances and REACH Substances of Very High Concern(SVHC), is 100% compliance with the specification.

Supplier CSR risk management

AOT is formulated in the procurement contract based on EICC version 5.1 (Supplier Corporate Social Responsibility Code of Conduct).

The new supply chain needs to pass the supplier evaluation and sign before cooperation, and promise to comply with EICC requirements. For Assessing high-risk suppliers to take audit controls, also supervising and improving the actual and potential significant deficiencies.

Supplier quality management

For key material quality management, the new suppliers are evaluated based on quality, cost, delivery time, technical capabilities, etc. to select the right supplier to cooperate with.

For the current key material suppliers will be evaluated based on the delivery defect rate, service quality, and purchase delivery time. If the standards are not met, assistance will be provided in the guidance.

If there is still no effective improvement, will be removed from the list of qualified suppliers.

The comprehensive management method of supplier is controlled and coached in the following three aspects:
1.Supplier management
Regarding key materials, regular quality meetings are held with suppliers to review related issues and continue to improve, in order to enhance the quality to meet the needs.

2.Supplier management system verification
Visting important suppliers as scheduled and conducting on-site audits on an annual basis. Once deficiencies are found, the supplier is required to propose appropriate improvement plans to meet Advanced Optoelectronic Technology, Inc.’s expectations.

3.For key materials, monthly evaluation based on the defective rate of delivery, service quality, purchase and delivery time, and provide the evaluation results to suppliers to urge them to improve.

Procurement risk diversification

Lack of material risk management

Coordinate the preparation mechanism with the supplier and establish safety stocks according to the length of the material preparation time, to ensure a smooth supply chain.

To avoid the risk of shortage of materials or a single supplier situation, according to the product development material evaluation mechanism, more than two qualified suppliers will be selected; in the case of a single supplier, new suppliers are developed according to product needs.

through the selection and evaluation, new qualified suppliers are selected to ensure that the supply is sufficient.

Local purchase

AOT production bases are concentrated in Taiwan and China. The supply chain is mainly consists of suppliers and related contractors of machine equipment, key components such as LED, printed circuit boards, electronic materials, lighting modules

Communication channels and response methods

Material procurement: Ms.Chang
Telephone:03-5976988 extension16876
Email: yuki.chang@aot.com.tw

Stakeholders：Customer

Advanced Optoelectronic Technology, Inc. focuses on the development of LED packaging technology, the main product is surface-mount light-emitting diodes(SMD LED). With stable quality, competitive cost, expanding economic scale, and full-capacity production to provide customers with reliable and competitive products, therefore, creating a win-win situation.

Main concerning issues

Quality management

We are determined to maintain and commit to the quality policy, by meeting requirements, and continuously improving the quality management system.

Anti-corruption issues

The company has always adhered to the principle of integrity management.

Hazardous substance control requirements

Control of hazardous substances to comply with relevant regulations and customer requirements.

The capability of vehicle product control

Actively obtain in-vehicle certification to obtain customer recognition

Communication channels and response methods

ISO 9001 certificaiton
Integrity management policy
IECQ QC080000 certification
IATF 16949 certification
Conduct annual customer satisfaction surveys

Business Management Department: Ms.Li

Telephone:03-5976988 extension:16627

Email: sales@aot.com.tw

Stakeholders：Employee

Advanced Optoelectronic Technology, Inc. supports and adheres to the provisions of the Labor Standards Act and regulations, and follows relevant international norms and guidelines to protect the human rights of the colleagues. In addition, it actively establishes positive employee relations and
implements AOT human rights policies following the Universal Declaration of Human Rights.

Main concerning issues

Labor relations

Colleagues are the most important foundation of the company, striving to maintain a harmonious labor-management relationship.

Salary and benefits

AOT emphasis providing a competitive working environment to talents.

Work-related

The development of colleagues be at the same pace as the company.

Occupational safety and health

Providing a friendly and safe working environment.

AOTHuman Rights

Establish a code of conduct for human rights

The code of conduct of Advanced Optoelectronic Technology, Inc.: respect for human rights, and consistent with the United Nations Universal Declaration of Human Rights.

To treat every colleague with integrity and fairness, respect for individual differences.

Eliminate any discrimination to ensure the fairness of colleagues

Comply with the labor laws and regulations of the local government, does not discriminate based on the differences in race, gender, age, disability, politics, religion, etc.

Ban child labor

Child labor is prohibited ( refers to any person under the age of 15 or under the age of compulsory education or the minimum age for employment in the country/region, the oldest of the three is the one specified ), and conduct inspections on hired employees.
Child labor must not be used in any manufacturing process.

Protect the rights and interests of workers

All work should be voluntary, not to force or coerce an unwilling person to perform labor acts.

Create a friendly workplace environment

Provide peer care communication channels to address human rights-related issues.
Pay attention to the needs of employees, promoting healthy and diverse activities to encourage colleagues to participate independently.
Continue to communicate the company’s human rights policy concepts through supplier audits.

Salary and benefits

Salary and benefits policy

Establishing a salary structure with external competitiveness and internal fairness is a policy that Advanced Optoelectronic Technology, Inc. values.
Perform annual salary adjustments, issue incentive bonuses and dividend bonuses based on the company’s financial operating status and personal work performance.
Regular labor-management meetings are held to enhance communication and cooperation between labor and management. The emphasis and care for employees do not differ due to gender, age, race, nationality, religion, etc.

Salary and welfare items

Fixed salary for twelve months
Holiday bonus ( Spring festival one month, Dragon boast festival half month, Moon festival half month)
Insurance Care: labor insurance, National health insurance, Group insurance
Incentive bonus: based on company operating status and personal performance
Appropriate the old system of labor and the new system of pensions by the law
Under the regulations of company policy, if there is profit in the current year, the proportion of employee who is paid shall not be less than 5%.

Insurance Plan

Enjoy social insurance which are labor insurance, National health insurance, and labor pension by the law.
The company may insure its employees with additional group insurance, including life insurance, accident insurance, medical insurance, and cancer insurance, etc.
Employees can also choose to participate in the insurance preferential self-pay plan for themselves and their dependents to reduce the burden on employees and improve family protection.

Improvement of labor system

Complete promotion system
Vacation and retirement system compliant with Labor Standards Act
Set up a staff welfare committee to plan employee’s benefits
Friendly working environment for gender equality, setting up breastfeeding rooms and reserved parking spaces for pregnant women
After six months of service, an employee may apply for childcare leave without pay before each child reaches the age of three, until the youngest child reaches the age of three, but not more than two years. After the expiration of the parental leave without pay, the company will arrange to return to the original position or counsel to a new post.

Workplace environment

Occupational safety education and training: a friendly and safe work environment is the result of the joint effort of the company and colleagues, for all colleagues to have a safe work environment, recruits must receive general safety education and training, supervisors at all levels to receive labor safety and health education and training. The company also provides training for internal auditors of the environmental safety and health management, fire drills, training on human-caused musculoskeletal disease prevention practices, general education courses on dangerous and hazardous substances, green products, and other related occupational safety training, strengthening the work safety and norms, and maintaining a safe workplace for the colleagues.

Communication channels and response methods

Quarterly labor-management meetings for maintaining
communication between labor and management.
Quarterly welfare committee meeting for guaranteeing
the relevant benefits of colleagues.
Internal Communication Hotline
Sexual Harassment Complaint Hotline
Integrity report mailbox

Corporate and Employee Relations Department : Ms.Yeh

Telephone:03-5976988 extension16551

Email: cindy.yeh@aot.com.tw

Stakeholders：Investors

Advanced Optoelectronic Technology, Inc. values highly establishing good communication channels with investors but also announces relevant information on the company and market observation post system, to strengthen information disclosure and protect the rights and interests of investors.

Concerned issues

Business performance

Provide immediate and accurate company financial and non-financial information for investors’ reference.

Investment prospects

Robust financial strategy and good operating performance.

Dividend policy

Long-term stable dividend policy to provide appropriate investment returns.

Corporate governance

Follow the norms and policy revisions of the laws and regulations of the competent authorities.
Pay attention to corporate social responsibility.

Communication channels and response methods

Annual general meeting of shareholders
Annual corporate briefing
Publish important information and related announcements on market observation post system.
Set up an email and contact number on the company website to establish an open communication channel between investors and the company.

Contact person：Mr.Cheng
Telephone：03-5976988 extension 16030

Email：ir@aot.com.tw