ESG & Sustainability

Despite the impact of the pandemic on the global economy and human life, PSA Huake Group has maintained steady growth and continued to expand its footprint. In 2020, the Group added new members, now boasting eleven companies worldwide and nearly 40,000 employees, with total revenue approaching NT$110 billion. Shareholder support and the hard work of our team are crucial to this growth. Therefore, we highly value the principle of "equal emphasis on shareholder value, employee welfare, and social responsibility" among our seven core management philosophies. We aim to ensure company profitability and reasonable returns for shareholders while further fulfilling our corporate social responsibility, creating a high-quality working environment where employees and the company thrive together. This will enhance operational performance, ultimately benefiting shareholders and society, achieving a win-win cycle of management, and building a solid foundation for the Group's sustainable development.

Regarding corporate governance and shareholder value, we believe that sound financial performance, maintaining healthy cash flow, and sustained growth in revenue and profitability are crucial for a company's sustainable operation, and that strong financial performance significantly impacts a company's investment value. Therefore, the PSA Group has set clear, quantifiable financial performance targets to enhance shareholders' and investors' understanding of the Group's long-term investment value and their confidence in a strong return on equity, enabling it to consistently generate higher economic value for shareholders, investors, and partners.

In terms of employee welfare, the PSA Group has established a systematic set of human resources rules and policies, referencing relevant human resources codes of conduct and regulations, covering areas such as human rights protection, recruitment, compensation, training, promotion, and retirement. It focuses on talent development, retention, communication, and life assistance to demonstrate its care for employees and its emphasis on talent, thereby leading the Group's companies to become socially responsible enterprises.

In terms of talent development, in response to the Group's globalization strategy and to increase operational efficiency and growth momentum, we not only open up opportunities for employees to apply for overseas assignments, but also continue to cultivate local talent in our various operational locations. Currently, a significant proportion of our management team comes from local talent. Furthermore, we design annual training courses and establish online learning systems based on departmental needs, providing employees with convenient and efficient learning tools to enhance their self-growth and industry competitiveness. Regarding talent retention, the Group has a comprehensive performance and functional evaluation system, referencing reasonable salary levels in the talent market, and implementing a profit-sharing and incentive bonus system based on employees' annual performance reviews. This allows employees to work with peace of mind and continue to contribute their expertise, growing together with the company.

To ensure effective communication and transparency, each company within the group has established mechanisms such as labor unions, proposal systems, and suggestion boxes, depending on their specific circumstances. Furthermore, the group utilizes technology and video to produce and broadcast short videos on corporate culture through online communication platforms. This not only increases cross-company communication but also enhances global employees' understanding of the business philosophy and the unique development characteristics of each company, resulting in very positive employee feedback. Annually, the group also conducts questionnaires or random employee satisfaction surveys to understand employees' thoughts on corporate governance, allowing for timely formulation or adjustment of human resources policies.

The Group's Huaxin Charitable Foundation has a unique EAP (Employee Assistance Program), which provides confidential and professional counseling services to employees, helping them resolve work-related, psychological, emotional, stress, health, family, financial, and legal issues. Additionally, through "Talking Point," the Foundation conducts interviews with new employees to help them quickly adapt to the company culture, resolve emotional issues affecting employee performance, and ultimately improve organizational efficiency. To date, over 300 employee care interviews have been conducted, and 49 care management and stress relief courses have been completed, proving very popular with employees.

Encouragingly, these efforts and achievements have translated into tangible recognition, with Walsin Technology, a subsidiary of the group, receiving the "Human Resources Innovation Award," the highest honor in Taiwan's human resources industry.

Continuing its commitment to giving back to society, the Hua Hsin Foundation has consistently promoted five major public welfare initiatives: hearing care, volunteer participation, newspaper reading education, caregiver respite, and a friendly workplace. To date, it has invested approximately NT$90 million and 4,165 personnel, including donating NT$77 million worth of hearing aids to care for 1,290 hearing-impaired individuals; providing hearing aid subsidies in 43 cases totaling over NT$1 million; recruiting and training 2,975 volunteers; conducting hearing health tests for over 20,000 seniors; assisting 825 hearing-impaired individuals in using free hearing aid banking services; and providing respite for over 400 caregivers through stress relief courses. It is the foundation in Taiwan that provides the most hearing care services at community care centers. Furthermore, since 2018, on World Hearing Day, March 3rd, it has expanded its media and public service advertising campaigns, generating 551 media reports with an advertising value of NT$40.92 million, aiming to raise awareness of hearing, encourage regular testing, and promote early treatment.

In 2020, for the first time, we extended hearing awareness to people of all ages, promoting the "66 Microphone Noise" rule to encourage the use of headphones at no more than 60% volume and for no more than 60 minutes at a time. We also trained 20 professional lecturers in hearing care promotion, published a professional academic paper titled "A Preliminary Study on the Application and Analysis of Whispering and Finger Friction Tests in Community Adult Hearing Screening," and officially launched the "Hearing Care Cloud" hearing health knowledge education platform, providing online consultation services for hearing care. We hope that through our continued promotion of CSR principles, more people will feel its importance and have their awareness increased.

Currently, the PSA Group has several companies in the Taoyuan area, including Walsin Technology, Hsinchang Ceramics, HannStar Board, and Jialianyi, with five factories and one headquarters R&D center, employing over 2,000 people. They have been deeply involved in the passive components and rigid-flex PCB industries for many years and have achieved considerable success. Recognizing the importance of giving back to society, and understanding the needs of the Taoyuan community, the group donated two 9-year-old SUVs and 12 motorcycles, enabling social workers to deliver care and resources to disadvantaged individuals in Taoyuan more promptly and safely. I also collaborated with the Taoyuan City Education District to launch the Taoyuan Bilingual Newspaper Reading Project, involving 31 classes from 12 junior high schools in Taoyuan City, with over 800 students participating, hoping to continue promoting the deep-rooted development of language education.

Passive System Alliance colleagues have also spontaneously established a public welfare organization to care for and nurture students in resource-poor rural schools, such as providing long-term subsidies for transportation, tutoring and extracurricular learning, fresh milk, computer equipment, and English passports.

The various companies under Passive System Alliance continue to take many actions in areas such as business performance, green energy products, and environmental protection, including:

• Occupational Health and Safety Policy: By complying with occupational health and safety regulations and continuously improving management and effectiveness, we were recognized with the 2010 Friendly Workplace Award.

• Employee health: We create a smoke-free and pregnancy-friendly work environment, provide health checkups, and have obtained the highest certification for healthy work environments.

• Environmental protection and green energy products: We strictly abide by environmental protection regulations, proactively develop green energy products that meet international environmental standards for our customers, and obtain multiple government certifications.

In the 2019 CSR report, I mentioned that "with the support of shareholders and colleagues, we hope to make CSR a part of the DNA of Passive System Alliance." I am very pleased that after a year, the Group has seen more concrete progress in all aspects of CSR, and has demonstrated its commitment to shareholder value, employee care, and social responsibility through actions, continuing to practice making CSR a part of PSA's DNA!