Corporate Social Responsibility (CSR) Report -2018 CSR report_20190327.pdfCH2 Economic Sustainable...

Corporate Social Responsibility(CSR)

Report - 2018

Accurus - Confidential

Chairman’s Message

Though some killer’s applications/technologies such as IoT, 5G, AI, HPC, Industry 4.0, Big Data and Autonomous driving may create more sales/opportunities, the economy of the world in 2019 may be still uncertain due to the trade war between America and China/Europe, slowdown economy of China & Europe, and other factors.

The vision of Accurus is to take care of our employees, feeding back good stock dividend to our stockholders and follow global society rule/standard. Accurus has allocated high percentage of the company profit to the shareholders and provided salary increase, year-end bonus, annual medical check-up, extra insurance coverage for the employee and her/his family, subsidy for employee vacation trip as well as other employees’ benefit since management buy-out the company in 2010. We would like to keep this policy as longer as we can in the future.

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In additional to follow the regulation of RoHS, REACH and other government regulations, Accurus has tried to work with our customers on Carbon Footprint Survey to monitor energy/water consumption and improve our living society. Moreover, Accurushas started to use LED lighting to replace traditional CFL light tubes to save energy for our earth.

Furthermore, Accurus has collaborated with all customers, suppliers and government offices to follow highest business ethics standards in the conduct of company business. We are also preparing to transfer from OHSAS 18001 to ISO 45001 to meet new requirement of occupational health and safety management system.

Being a sustainable company for all stock-holders, employees and society—By Henry Wang

Chairman of Accurus3


CH2 Economic Sustainable Growth

2-1 Company Governance2-2 Innovation Management2-3 Customer Service2-4 Risk and Crisis Management2-5 Sustainable Supply Chain Management

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2-1 Company Governance

Accurus has an effective corporate governance framework that is consistent with Taiwan's Company Act, Securities and Exchange Act, and other related laws and regulations. Accurus also established the “Accurus Corporate Social Responsibility Principles” as practical company considerations to protect shareholders’ equity, respect stakeholders, enhance information transparency, strengthen the competency of the Board, and uphold corporate integrity and code of conduct. It is hoped that through effective corporate governance, the company can fulfill its corporate responsibility in sustainable development and enhance corporate performance.

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2-1-1 Code of Ethics and Anti-Corruption

The purpose of this is to promote ethics, honesty and professionalism within the company and among its employees. The company believes in being an integrated organization and that the action of every employee affects its entire organization and reputation. Any employee is obligated to strive for the extension of the Company’s interests within legal limits, and responsible of preventing damages or loss of the Company’s interests.

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ACCURUS expects all employees to comply with the company’s principles in their daily work and business execution to gain public confidence and ensure sustainable growth and development for the company. By promoting the ACCURUS Code of Conduct (targets include suppliers, customers and others entities pertaining to ACCURUS operation and development), it is hoped that joint efforts can be put into fulfilling corporate social responsibility and promoting balanced and sustainable economic, social and environmental development.

ACCURUS encourages open communication with employees and third parties. Questions pertaining to ethical and legal conduct or unequal treatment in the workplace may be referred to the Human Resource Office or Employee Care Office for assistance, and reports may be filed to uncover, stop and prevent major misconduct or violation of government regulations.

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2-1-2 Legal Compliance

ACCURUS's customers are located around the world, and its operations are distributed over several countries. To ensure that operations are in compliance with the laws and regulations of each country, thereby avoiding losses due to legal violations or avoiding profit loss due to fines, ACCURUS has consistently paid close attention to all changes in policies or laws that might impact the company’s business or finances.

All ACCURUS departments must comply with relevant laws and regulations. ACCURUS and its employees are required to comply with relevant business laws and regulations. The company arranges training programs and courses on legal compliance to familiarize employees with updated regulations. Prompt updates allow employees to implement job regulations into their daily management, thereby ensuring that the company complies with the law.

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2-2 Innovation Management

Therefore, in view of factors such as functional integration, increased performance and low power consumption, chip design has become increasingly complex. Moreover, for production efficiency, semiconductor manufacturing technology must continue to miniaturize, and wafer surface area must increase in diameter, and reduce the diameter of the solder ball used and improve product reliability.

Hence, given these semiconductor manufacturing trends, ACCURUS continues to be involved in new research and development to strengthen corporate competitiveness and to help the company create profits.

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2-2-1 Successful Development of Technology or Products

Alloy solder bars (eg tin solder bars, master alloy solder bars)

New alloy solder balls (eg Cyclomax, QSAC20, QSAC10, Ecolloy)

[ Cyclomax ] : High temperature resistance and high strength, corresponding to high package structure strength applications

[ QSAC20 & QSAC10 ] : Corresponding to low package structural strength applications

[ Ecolloy ] : High-strength Low Cost demand application

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2-3 Customer Service

In the spirit of ACCURUS’s philosophy of towards sustainable development, we believe sustainable economic development requires stability and growth in business performance, respect for customer feedback, customer demand, customer recognition and customer long-term support. While striving to strengthen operational performance, the company’s economic growth and business sustainability is facilitated by a virtuous cycle that can only be truly created by investing and giving back to society, so that mutual benefits can be realized.

ACCURUS is committed to meeting customer product demand, and emphasizes customer orientation and professional support. The company thinks from the customers’ perspective, and based on their needs, provides a full range of services to achieve customer satisfaction and business sustainability.

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2-3-1 Protecting Customer Assets

ACCURUS commitment to ensuring the important Intellectual property security of our customers. ACCURUS is fully convinced that our philosophy of operation has not only helped us and our customers achieve today's growth and prosperity, but is also the best guarantee for achieving long-term success in the future.

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2-3-2 Improving Service Quality and Customer Satisfaction

Since the beginning of its operations, ACCURUS has been committed to customer satisfaction as its duty and long-term objective. This customer-centric mentality became the core value of the company. Customer-oriented products and services are our priorities, and overall solutions for fulfilling demands are based from a customer perspective.

Improving Customer Satisfaction ACCURUS’s utilization of scorecards to determine customer

needs and satisfaction allows for more immediate knowledge of customer needs. In addition, ACCURUS also responds to customer needs through meetings, and ensures that their needs receive proper attention. At the same time, the company lists product quality and timeliness as key indicators of the company’s internal performance to further enhance customer satisfaction and create a win-win business.

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2-4 Risk and Crisis Management

The ultimate direction of ACCURUS's business operations is sustainable development, sound risk management and appropriate crisis management to ensure sustainable operations. To reduce accidents and their subsequent negative impact and losses, ACCURUS is diligent in its crisis response, crisis prevention and drills in order to maintain its company image and protect the interests of stakeholders.

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2-4-1 Market risk estimation and management

Semiconductors continue to be optimistic in the mainland market, but relatively competitive products have high homogeneity and many competitors. It is necessary to continuously develop new products and continuously improve quality and production technology to maintain corresponding competitiveness.

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2-4-2 Product risk estimation and management

In order to cope with the trend of thin and light electronic products, the quality control of micro balls will become the biggest challenge. After expansion, it can be divided into the following major items:A. The accuracy of the measuring machine.B. Clean room management.C. Automated import.

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2-4-3 Management risk estimation and management

When the equipment is abnormal, notify the maintenance personnel to perform maintenance. If the operation cannot be resumed immediately, adjust the equipment. The production line is not manpower, and the supervisor should require existing personnel to work overtime to make up for the production hours. Hold a production and sales meeting to confirm whether it affects the supply. If there is any impact, initiate an emergency response plan and notify the customer of the information confirmation and negotiate the subsequent schedule.

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2-4-4 Financial and Operational Risks

The company handles financial issues with a conservative and prudent principle and does not involve non-industry, speculative or derivative financial products, so the finances are relatively stable. Up to now (2019/6/25), there are tens of millions of cash in NT, and a loanable amount of more than 100 million yuan for operational turnover.

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2-4-5 Hazard Risk Control

ACCURUS fully recognizes the impact and influence of natural and man-made disasters on production and operation. Hence the company has consistently adopted an active attitude toward preventive disaster risk management, and seeks to achieve the highest standard of industrial safety through rigorous risk engineer controls and implementation of safety regulations and norms.

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2-5 Sustainable Supply Chain Management

Management policy Environmental protection and sustainable development Care for social responsibility, labor rights, safety and health Suppliers' ability of quality, cost advantage, product delivery, service,

sustainability, etc. Responsible Business Alliance, RBA

Supplier capability evaluation New supplier evaluation Supplier assessment Assessment mechanism

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2-5 Sustainable Supply Chain Management

Supply chain risk Business continuity plan Earthquake/fire hazard risk Climate change/ risk map

Procurement localization Increase in proportion of local procurement, shorten delivery and reduce carbon footprint

Conflict mineral management Management policy/process To ensure that products and the supply chain are free from conflict

minerals

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Major Performances

Supplier sustainability questionnaires and assessment On annually basis

Conflict mineral management No conflict mineral supplier is allowed

Ethics and anti-corruption Publish Accurus code of conduct to be followed Establish whistleblower channel

Supply chain risk Two source for each major material

Supply chain sustainability(ESG) promotion: circular economy

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CH3 Environmentally Friendly Management

3-1 Clean Production3-2 Carbon Asset Management3-3 Water Risk Management3-4 Waste Management3-5 Green Product

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3-1 Clean Production

Production environment is cleaned regularly every week.

5S regular rating activity.

Security environment inspection.

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SUSTAIN


3-2 Carbon Asset Management

Electricity cost is one of major production cost of Accurus, so, we have tried to reduce electricity onsumption by higher production yield, energy-saving equipment and more efficient production planning.

Inspection policy : Increase raw material recovery. Process improvement to reduce energy consumption. Reduce the number of shipments. Reduce scrap risk.

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3-3 Water Risk Management

There was no waste water from production line. The waste water of Accurus was from living related consumption。

To protect our environment, Accurus still send the waste water for checking regularly to ensure it meets local regulation requirement.

In the following table we compared the 2012 ～ 2018 water consumption, and found that water consumption per product KK production decreased as quantity enlarge.

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Year 2012 2013 2014 2015 2016 2017 2018

Water Consumption(m3) 6870 7044 6313 7539 7403 6921 6565

Production quantity(KK) 727480 746973 892333 1014586 1607955 1949854 1995317

Water consumption to product quantity(m3/KK) 0.00944 0.00943 0.00707 0.00743 0.0046 0.0035 0.0033


3-4 Waste Management

Most of Accurus alloy products are recyclable. Besides, Accurusalso encourages employees to recycle garbage as much as we can from daily life to reduce the waste.

Accurus sets up 1% annual growth rate of recycle to reduce the waste/garbage.

Compared the number of waste products for year 2012 ～ 2018, and found a decrease in the number of nonhazardous waste ituation per unit product as following table.

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Year 2012 2013 2014 2015 2016 2017 2018

Non-hazardous waster(KG) 16272 16112 16115 15668 15380 19160 17285

Production quantity(KK) 727480 746973 892333 1014586 1607955 1949854 1995317

The amount of Waste generated to product quantity(KG/KK)

0.022 0.021 0.018 0.015 0.01 0.01 0.009


3-5 Green Product

1. All products and manufacturing process meet related regulation (for example：RoHs、WWW、REACH…, etc.).

2. Request all suppliers not to use hazardous chemicals on the forbidden list.

Green Lead-free ProcessTo meet RoHS forbidden hazardour material regulation, all Lead-free products meets RoHS requirement since June 1, 2006.

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CH4 Common Prosperity

4-1 Labor Rights4-2 Recruitment and Cultivation4-3 Health and Safety Workplace4-4 Community Service

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4-1 Labor Rights

Salary: Accurus treats human resource as one of very important task and ensure salary can reflect fairly the performance of personal and group as well as responsibility of each employee. It also proves there is no sex discrimination on company pay.

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4-1 Labor Rights

Labor policy:1. Free choice of occupation. 2. No child labor employed. 3. Humane treatment. 4. Free association. 5. No discrimination. 6. No deduction of employee salary. 7. Do not overtime. 8. Personal freedom.

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4-1 Labor Rights

Accurus respects human rights for each employee.

If there was any complaint about discrimination, HR section and related Dept. will start investigation immediately.

There is monthly meeting among the representatives of employees and manages for communication, suggestion and investigation of employee’s feed-back.

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4-1-1 Employee’s Salary & Benefits

Accurus HR section analyzed the pay and benefit of benchmark company to ensure we offer similar level of salary and employee’s benefit to our employees.

In additional to salary pay, Accurus HR is also in charge of proposal for bonus, health insurance, group & accident insurance, business trip expense, transportation allowance, and etc.

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4-2 Recruitment and training

Accurus offers good working environment and benefit to recruit more good employees.

Accurus arranged several types of training for employees, including, on-board, on-job, technical, operation, IT,safety, health and leadership training.

There are 39.5 hours internal training and 90 hours out sourced training for employees in 2017.

There are also promotion and transfer chance inter andbetweendepartments.

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4-2-1 Records of Training

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4-3 Health and Safety Workplace

Accurus arranges training related to vocational health &safety regularly. In additional to follow government regulation, Accurusalways highlight “Safety First” concept to all employees.

To reach better health and safety management, Accurus has got and renewed OHSAS-18001 certificates. Besides, the members of “Vocational Safety Committee” are Dept. head and representatives of employees to provide suggestions for corrective actions.

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4-3-1 Policy for Environment, Safety & Hygiene

Follow regulation to reduce risk of environment & safety violation

Keep improvement operation to prevent impact to environment or safety

Complete training related to environment and safety to meet Corporate Social Responsibility

Promote energy saving and waste reduction to protect environment and ecology

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4-3-2 Employee’s Benefits

1. Employees’ Committee

2. Quarterly Luncheon Buffet

3. Salary Adjustment

4. Vacation Leave

5. Subsidy for Employee’s Travel

6. Health, Labor & Group Insurance

7. Uniform and Safety Protection Equipments

8. Meals Allowance

9. Business Trip Expense & Allowance.

10. Annual Health Check-up

11. Others.

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4-3-3 Photos of Quarterly Luncheon Buffet

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4-3-4 Communication with Employees

In additional to face-to-face, TEL and email communication with employees, Accurus also offers suggestion box at canteen and email address for suggestion feed back.

Top management will praise employees with good performance, announce new company policy, introduce new employees and communicate with employees during quarterly luncheon buffet.

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4-4 Community Service

Environment Protection Accurus follows ISO 14001 to maintain

management system to protect our environment.

Tree planting activity.

Waste reuse, recycle, reduction and RECYCLE separation activities.

Monitoring of Environment Status(Operation environment, plant boundary, such as

Lead. Dust, noise and smoke detection.

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Carbon footprint survey activities.

Greenhouse Gas Investigation

Coast/beaches cleaning environmental activities

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4-4-1 Corporate Social Responsibility

Accurus encouraged employees to join charity activities to show Corporate social responsibilities and commitment.

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4-4-2 The Short/Long-term Target of CSR

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Item Target for 2019 Long Term TargetSocial Care ◎Participate in charity donations or

community welfare activity.◎Participate the Community consulting◎Contribute to the continued development of Corporate Social Responsibility.

Education ◎Strengthen internal staff training. ◎ Training grassroots cadres.◎ Implementation of job training.

Environment Protection

◎Periodic review of the implementation ISO-14001.◎Encourage the implementation of theResource Reuse, Reduction and Recycling.

◎Reduce proportion of waste shipping to increase the resource recycle rate annually.

Corporategovernance andCommunicationWith shareholders

◎Regularly review the process and sales results to increase the performance of the company.◎Review of the area of corporate responsibility which can be improved and set up corporate social responsibility policy.

◎Further strengthen the risk assessment of business operation.◎Announce the company's operating message regularly to show the operation transparency .

Communication with Employees

◎Promote 5S activities to reach more comfortable operating environment, and enhance operation efficiency.

◎Organizing annual Family Day or other activity to strengthen the employees' loyalty.

Accurus - Confidential 45

Thank you for your attention!

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