Corporate Social Responsibility

The board of directors is the company's highest governance unit and the center of significant business decisions. Its responsibilities include appointing and supervising the company's management, managing business performance, supervising company compliance with laws and regulations, its articles of association, and the shareholder resolutions committed to maximizing shareholder rights. The board of directors should be responsible for its operating conditions, set precise goals, and strive to achieve them. The board of directors shall be accountable to the shareholders' meeting. The directors' remuneration must be submitted to the shareholders' meeting for resolutions, and the shareholders shall decide and recognize the business results of the board of directors as a measure of the management performance of the company's highest governance unit. Measuring board performance improves the quality and efficiency of the board's decision-making ability to enable effective management and supervision. At present, there are seven directors and three supervisors, including two independent directors, on the company's board of directors.

The company's association articles specify the professional qualifications, shareholding, part-time restrictions, nomination and selection methods, and other compliance matters of independent directors by the relevant regulations of the securities authority. The nomination and appointment of independent directors of the company must comply with appropriate professional qualifications, independent judgment, and part-time restrictions. Independent directors must follow the "Measures of Independent Directors in Public Offering Companies" for adequate supervision, safeguarding shareholder rights, and strengthening corporate governance.

Member of the Board

The company adopts a candidate nomination system for the selection and appointment of directors. Besides possessing professional knowledge and rich corporate governance experience, it also values ​​its directors' conduct and ethical reputation. The board member structure of the company is indicated as:

Board Member Selection and Diversity Policy

Important Resolutions and Implementation of the Board of Directors for 2020

Important Resolutions and Implementation of the Board of Directors for 2019

Evaluation of Board Performance

To ensure that the members of the board of directors faithfully perform their business, exercise their powers prudently, and complete their duties as a good manager, Winmate formulated the "Board Performance Evaluation Measures" on August 12, 2016. At the end of each year, the board of directors is evaluated according to various indicators,(including functional committees). The performance of the board members is evaluated and the results are submitted to the remuneration committee for review. The results are used as a reference in deciding the remuneration for the directors and supervisors and are sent to the board of directors for a board resolution.

The 2019 performance evaluation for Winmate's board of directors was completed. The result indicates that the performance of the board of directors, board members, compensation committee, and a committee of mergers and acquisitions were all rated "Excellent." The results of this performance evaluation were submitted to the Board of Directors in April 2020, and the plan for remuneration distribution will be sent to the Salary and Compensation Committee for review.

Principle for Avoiding Conflicts of Interest

The company stipulates principles for avoiding conflict of interests as part of the board of directors’ rules. Directors and legal representatives with interest are obliged to explain the content of their interest to the current board of directors. Anyone with interests harmful to the said company may state opinions and answer inquiries, but shall not participate or be included in the discussion or voting process. Such persons may also not act for other directors by exercising their voting rights. The name of the director involved and any critical claims shall be listed in the meeting minutes.

The Audit Committee

Winmate has not set up an audit committee. If the board of directors has a significant resolution (such as a surplus distribution proposal, convening a shareholder meeting), it will be announced in the public information observatory following regulations. When the current board of directors expires and is re-elected, the number of independent directors will be increased, and an audit committee will be established.

Compensation Committee

On August 24, 2011, the company established the Salary and Compensation Committee following establishment regulations and to exercise the functions and powers of the company's salary and remuneration committee when stocks are listed or traded on the business premises of a securities firm.

By the Remuneration Committee's regulations, the current committee appointed two independent directors, Mr. XieFada and Mr. Hu Tonglai, and an external remuneration expert, Mr. Hong Mingzhou. The committee was unanimously elected by all members convened by the remuneration committee. Three remuneration committee meetings were held in 2019, and the total attendance rate was 100%.

• Central Powers of the Remuneration Committee

  The Salary and Compensation Committee shall, with the attention of good managers, faithfully perform the following functions and powers, and also submit suggestions to the board of directors for discussion:

  • Formulate and regularly review the policies, systems, standards, and structures for performance evaluation and remuneration of directors, supervisors, and managers.

  • Regularly evaluate and set the salary and remuneration of directors, supervisors and managers.

• Remuneration of Directors and Supervisors and Remuneration of Employees

  • According to the regulations of Winmate's articles of association, if the company posts a profit in the year, 5% to 15% shall be allocated as employee compensation; with such profit, the board of directors resolution shall give no more than 2% as remuneration to the directors and supervisors.

  • Remuneration for the employees shall be paid in stock or cash by the board of directors' resolution, whereby payment recipients include the employees of controlling or affiliated companies that meet certain conditions.

  • Winmate's salary and remuneration policy take into account "employee salaries and company operations growth" to help implement corporate social responsibility.

  • The company's remuneration procedures have considered the performance evaluation results of directors, supervisors, and managers. The distribution of the remuneration of directors, supervisors, and managers are linked to the results of the current year's performance evaluation, which is reported to the remuneration committee for review and sent to the board of directors for resolution.

The following table illustrates the analysis of remuneration for Winmate's directors, supervisors, and senior managers. It explains the remuneration policy, standard and combination, the procedure for setting compensation, and the correlation with business performance and future risks.

* (Proportion of total net profit after tax)

Special Committee on Mergers and Acquisitions

• Composition of the Special Committee on Mergers and Acquisitions

  The establishment of the Special Committee on Mergers and Acquisitions aims to strengthen corporate governance and to review the fairness and rationality of merger plans and transactions. According to the "Organizational Rules for the Establishment of the Special Committee on Mergers and Acquisitions," the committee has three members, including two independent directors of the company, Mr. XieFada, and Mr. Hu Tonglai. Mr. Hu Tonglai is the convener. The board of directors selected an external expert, Mr. Hong Mingzhou.

  The members' qualifications comply with the provisions of Articles 2 and 3 of the "Measures for the Establishment of Independent Directors of Public Offering Companies and Matters." They shall not be related parties or have a relationship with M&A transactions to the degree that it will affect independent judgment.

• Responsibilities and operation of the Special Committee on Mergers and Acquisitions

  The members of the M&A Special Committee faithfully performed their duties as qualified managers. The fairness and reasonableness of the merger plans and transactions shall be reviewed, and the company shall submit the review results to the board of directors and the shareholders meeting. However, suppose there is no need to convene a shareholder meeting to resolve the merger matter by the Enterprise Mergers and Acquisitions Law provisions. In that case, it must not be reported in the shareholder's meeting.

  The committee's convention shall be notified to the committee members seven days in advance, except in the case of emergencies. Two independent directors will participate as committee members. Independent directors serve as the convener and chairman of the meeting. Independent experts, managers of relevant company departments, internal auditors, accountants, and lawyers may attend the meeting and provide the appropriate necessary information.

  Members must attend the committee in person and are not allowed to participate on behalf of others on the committee. When the meeting is held, the company will set up a sign-in book for treating members to sign in, and it will be part of the proceedings.

Internal Control

Winmate oversees all operating activities and its subsidiaries by establishing an effective internal governance system, i.e. "Public Offering Companies Establishing Internal Control System Processing Guidelines." In response to changes in the company's internal and external environments, regular reviews help to ensure that its design and implementation continues to be effective.

The implementation of the internal control system is a continuous operation. Through continuous inspection of various functions and management processes, we may discover facts that deviate from the company's policies, operating procedures, established goals, or expected standards. Hence, the use of the feedback system allows management to respond and take necessary corrective actions to ensure that the company's operations follow the original plans. The internal audit system serves the purpose of preventing fraudulent activities and operational malpractice.

Internal Audit

Winmate has an audit team directly under the board of directors, where the board approves the appointment and removal of the audit supervisor of directors. The internal audit operation mainly assists all units in improving the operation process, increases efficiency, and communicates with relevant departments to help promote the company's operational effect and efficiency.

Internal Audit Duties

The audit office's role is mainly to assist the board of directors and senior management to independently and objectively evaluate the completeness, effectiveness, and implementation of the internal control system, and to also provide timely improvement suggestions to ensure that the internal control system can be continuously and effectively implemented.

Management places great importance on corporate governance and fully supports it to help Winmate continuously improve performance and implement the effectiveness of internal control and audit system operations. As of late 2019, Winmate has not violated any regulations related to the internal governance system, and employees have not filed any complaints related to violations of customer privacy and loss of customer information. However, if such incidents are subject to complaints, those verified by internal investigations will be guaranteed the Legal rights of customers. Winmate adheres to the principle of proper and fair disclosure and regularly provides info on the website, such as the board of directors’ statement, public stock exchange info, key corporate info, and financial reports.

Risk Management

• Risk Management-oriented System Establishment

  The internal control system is designed by the manager, approved by the board of directors, and followed and implemented by the board of directors, managers, and all employees. The purpose is to promote the company's management to reasonably pursue the following goals:

  • Effectiveness and efficiency of operations.
  • A report that is reliable, complete, transparent, and in compliance with relevant regulations.
  • Compliance with applicable laws and policies.
  
  

  By considering the company's organizational structure and assignment of powers and responsibilities, also to human resources, and the principles of ethical values ​​and honest management, Winmate established a sound and efficient internal governance system for the company's operating cycles and management operations. The company combines certifications such as ISO 9001 quality management, ISO14001 environmental management, IECQ QC080000 Hazardous substance process management, and ISO 14064-1 greenhouse gas inventory, ISO 13485 medical equipment quality management, IECEx & ATEX explosion-proof product management, ANSI/ESD S20.20:2007 electrostatic protection control management, CG6004/6006 corporate governance system evaluation and other systems, which all serve as risk management and prevention mechanisms for the company at the operational and financial levels.

• Basis of risk assessment, the goal of risk control

  Winmate follows an internal governance system and has dedicated units responsible for managing company operations, finance, production, business, procurement, information, safety and health, and the environment. Based on risk assessment results, the audit office prepares an annual audit plan and performs internal control checks. During the audit process, it identifies opportunities for improvement in operational operations, makes recommendations for improvement, and regularly tracks the situation so operational risks can be controlled.

• Internal control self-assessment and internal control system declaration

  The internal control assessment is carried out every year. The management and operation departments first self-assess, then the audit office collects the evaluation report and submits the audit unit's recommendations to the directors' board. The board of directors and general manager evaluates the effectiveness of the overall internal control system, and is based on the "Declaration of Internal Control System."

Integrity management

The company follows a business philosophy based on transparency and responsibility to establish a corporate culture instilled with integrity. Corporate policies and procedures are also based on values of integrity, where a dedicated unit has been set up to promote management policies and operations to increase the effectiveness of internal governance and accounting systems. Reports are regularly reviewed by the board of directors and a whistleblower mailbox is set up to further implement integrity as part of the management policy. The company aims to provide a sustainable business environment with good corporate governance measures and risk control mechanisms.

All Company Members are Responsible for Integrity Management

The board of directors and supervisors actively implement integrity management measures, such as leading by example, creating a culture of good professional ethics and regulatory compliance, and promoting the company's core objectives of integrity management from the inside out. The values and concept of integrity are widely shared throughout the company, where regular education and training sessions are conducted. The ethical systems and regulations are further published on the company website. As a result, employees can clearly understand how integrity management is the cornerstone of corporate operations. When conducting external commercial activities, any transaction partner is made aware of the company's"integrity management" philosophy and must reject any transactions with dishonest behavior.

A History of the ImpartialManagement System

The company has formulated the "Integrity Management Code" and "Integrity Management Operation Procedures and Behavior Guidelines," which stipulate integrity management practices aimed to prevent dishonest behaviors; the "Ethical Conduct Code" further regulates the ethical behavior of directors, supervisors, and managers; the "Investigation Standards for Reporting Matters" specify the channels and procedures for handling reports.

Implementing Integrity Management in 2019

• Revised the "Code of Integrity Management" and created "Ethical Management Operating Procedures and Behavior Guidelines."

  To meet actual operating requirements and comply with the release of laws and regulations, the company revised the "Code of Integrity Management." It further created the "Operational Procedures and Behavior Guidelines for Integrity Management" in 2019, which was approved by the Board of Directors in August and was further announced on the company's internal and external websites for compliance.

• Set up a dedicated unit for Corporate Integrity Management

  The General Management Office of the company is a unit responsible for the promotion of corporate integrity management, the formulation, and supervision of integrity management policies and prevention plans. The unit reports to the Board of Directors on the implementation of integrity management at least once a year.

• Education, training, and publicity related to integrity management and the prevention of insider trading

  Through employee education and training materials, Winmate conveys impartial management concepts to help employees fully understand the relevant regulations and prevention plans of ethical leadership. In 2019, we carried out education and training courses related to integrity management to prevent insider transactions for employees. The courses covered integrity management standards, ethical codes of conduct, prevention of insider transactions, and internal information processing. More than 300 people were trained in the process, including directors, supervisors, managers, legal representatives, etc. External experts were hired to conduct education and training for courses on integrity management, accounting systems, internal control, etc. The company also published relevant regulations on its internal website for employees to review.

• Carry out risk assessment operations and implement checks

  The annual risk assessment is implemented for integrity management, where the operating unit is evaluated based on risk indicators. The audit office collects the assessment results, analyzes the higher-risk items, and schedules an audit plan. In 2019, the integrity management system was verified based on the risk assessment results.

• Avoiding conflicts of interest

  In 2019, the board of directors implemented policies to avoid conflict of interests. Directors, supervisors, and managers interested in the proposal have already discussed and voted on the proposal.

• Conduct business activities based on the principle of good faith

  Winmate has established "Supplier Management Procedures" and "Supplier Annual Appraisal Form." All business transaction objects must be reviewed and approved by the company, whereby the cooperative suppliers/outsourcers are regularly audited and evaluated. The 2019 list of suppliers has undergone the annual assessment.

• No significant violations of the law

  In 2019, there were no significant violations of laws, penalties, and violations of integrity management.

• Reporting mailbox
  

  Winmate created the "Investigation Standards for Reporting Matters" and has a dedicated mailbox for this cause. In 2019, there were no reports of illegal or dishonest responses.

The whistleblower system and whistleblower protection mechanism

• The company created the "Investigation Standards for Reporting Matters," in which the audit unit is responsible for accepting reports and effectively implementing the report and appeal system.

• The company's "Operational Standards for Reporting and Investigation" clearly stipulates that company personnel must report any illicit actions. The company has a website and employee mailbox to accept and respond to any related matters.

• The company has a protection policy for any reported matters, and strictly keeps the information of the informant confidential. The specific content of the reported matter and appropriate investigations shall be conducted without revealing the informant's identity.

• Reporting channels: The reporter may choose one of the following methods to report the situation:
  Email: supervisor@winmate.com.tw
  Address：Audit Office, 9F, No.111-6, Shing-De Rd., Sangchong Dist., New Taipei City
  In-person Report：Audit Office

Winmate strictly abides by different legal requirements and has created relevant policies and measures to achieve this. The company follows measures including, but not limited to Fair Trade Law, environmental protection, financial report preparation/internal control process/inside trading, labor regulations, anti-harassment, anti-discrimination, anti-corruption, personal data protection, moral requirements, intellectual property rights, information security protection, conflict mineral management, anti-counterfeiting of electronic parts, etc. The management policies help the company adhere to business ethics and legal compliance requirements. In addition to meeting basic operational needs, all employees must be informed about relevant business laws and regulations, correct ethical judgments, and operational decisions. Please refer to the table on the right to view the applicable rules of compliance during the reporting period.

Compliance

1. A spokesperson system has been assigned to handle related matters, including spokespersons, acting spokespersons, stock affairs, etc.The unit is responsible for communicating company information to investors to ensure that investors fully understand the company's operating policies.

2. There is a special channel for investors to update their information regularly. Shareholders and investors can also use the shareholder service mailbox (ir@winmate.com.tw) for questions and suggestions.

3. A special channel is set up for interested parties on the company website to help maintain communication channels with interested parties at any time.Relevant parties will handle important issues of concern for stakeholders and respect and safeguard the rights and interests of stakeholders.

4. In addition to publishing monthly revenue information, annual corporate briefings and annual shareholder meetings are held,All relevant information can be found on Winmate's official website (http://www.winmate.com.tw).

5. Information Disclosure Management
   
   • Speaker
   • Corporation briefing
   • Shareholders' meeting
   • Public information viewing station
   • Company website
   • Corporate Social Responsibility Report
   • Special area for stakeholders

Operation Team

Main Business Departments

Product Development

Winmate has a total of 180 full-time engineers specializing in solutions for everyday work conditions, including sunlight readability, heat dissipation, power management, mechanical design, and a range of special technologies such as anti-salt spray. From design to manufacturing, Winmate also has a range of products that comply with ATEX and IECEX explosion-proof safety standards. Plus, the use of exclusive magnesium alloy and impact-resistant polymer materials ensures that all our products can withstand any possible vibrations and drops on the worksite.

Our products have obtained a full range of certifications from ATEX, Ansi, and Zone 1 – Zone 2. Winmate devices also fully support Windows and Android OS platforms, which are sufficient to meet functional and operational challenges that may arise on site.

The biggest competitive advantage for Winmate lies in its special industrial touch display control system, I/O interface, mobile information integration, key technology research and development capabilities, and a complete product line of varying display sizes. The products combine key industrial computer technology with machine board, software, and firmware research and development capabilities. The solutions can meet certain challenges such as outdoor lighting environments, especially high and low-temperature environments, or system display and control interface.

With software and hardware integration and comprehensive hardware integration system planning, Winmate drives market demand by setting trends and promoting itself alongside leading players in the market.

Also, the company is simultaneously increasing the "Winmate" and "G-Win" brand name, where the channels are diversified and intensively cultivated. All of this helps to integrate talents, technologies, products, and brands, to create a precise plan for the market.

Marketing Strategy

 Short-Term

Focus on the development of the industrial Internet of Things technology and how it works as a solution for the brand, product, services, and corporate culture in every part of the world. Steadily develop a diversified business of global operations.

 Mid-Term

Integrate and implement CSR based on the core competence of the industry, and maximize benefits and efficiency of social resources, while also benefiting itself and the industrial environment to achieve sustainable development goals.

 Long-Term

Winmate will continue to horizontally unite with software alliance partners, build up R&D strength and customer service experience, strengthen the Winmate brand and marketing channels, and introduce the industrial chain layout of the vertical market. The alliance of global strategic partners will further extend the core advantages and benefits of each other's software and hardware systems, in addition to R&D and manufacturing, system integration, brands, and other channels – all of which will work together to expand the industrial computer market.

Operation Performance

Winmate's consolidated operating income in 2019 was NT$1.665 billion, an increase of 6.4% from the previous year's 1.565 billion; the combined gross profit margin increased to 36.93%, and the consolidated net profit after tax was 241 million NTD, compared with the previous year's205 million NTD, which marks an increase of 17.65%. After-tax earnings per share were equivalent to 3.34 NTD.

• Financial subsidy from the government
  Winmate obtained the 2017 total tax credit of investment from IRS in 2019, the amount was 13,022 thousand NTD.

Sustainable Business Operations –in addition to the sustained stability and growth of economic performance, the importance of customer opinions, meeting customer needs, and obtaining customer recognition and support are also important for sustainable business operations. Oriented – Winmate responds to customer needs with a proactive attitude and holds in high regard the competitive nature for all its customers. A successful customer means a successful company. Winmate strives to establish far-reaching cooperative relations with its customers, whereby customers can become long-term partners through trust and success.

Customer Satisfaction Survey

Winmate regularly conducts annual customer satisfaction surveys to attain comprehensive and continuous first-hand feedback. The survey enables Winmate to understand the customer experience process and use this as a basis to improve its services. We conduct an in-depth analysis of uncompleted projects and simultaneously establish an audit and tracking mechanism to ensure that the customer needs are resolved. Through the questionnaires and in-depth interaction with customers, Winmate can more closely meet the needs of its customers to improve the quality of service and cooperation. We firmly believe that the improvement of customer satisfaction will ultimately lead to greater customer loyalty and business growth.

Customer privacy protection

• Winmate attaches great importance to the privacy and intellectual property rights of customers. The collection, processing, and use of customer data must comply with the "Personal Data Protection Law" of the Republic of China government and its related laws and regulations. Confidentiality agreements must be signed with customers to protect their confidential information.
• When collecting, storing, processing, transmitting, and sharing personal information, Winmate complies with the procedures and regulations related to information security.
• In 2019, Winmate did not receive a single complaint about infringement of customer privacy or loss of customer information.

Based on operations, Winmate is committed to maintaining a good partnership with suppliers to achieve a win-win situation with both customers and suppliers alike. The purchase price, delivery date, quantity, and quality are all key factors for selecting and evaluating suppliers. Considerations include industrial characteristics, transaction patterns, and geographical relationships, to ensure that the supply chain maintains the stability of business operations. In response to diversified customized products and persistence in quality, the choice of its suppliers is more important. For procurement activities, considerations will include environmental benefits, labor rights and social responsibilities, and a commitment to long-term cooperation with high-quality manufacturers, which helps to maintain a good interaction model, and continue to strengthen the resilience of the supply chain to jointly create a lean and sustainable operation.

Management strategy and objectives

The primary conditions used to select qualified suppliers will take into account whether the supplier has been involved in major industrial safety accidents or illegal environmental protection issues, etc. The cooperation will be terminated when necessary.

The labor, society, environment, and compliance of the supplier with local laws and regulations will directly or indirectly impact the quality and reputation of Winmate operations. Therefore, they will be audited from time to time through factory visits and annual evaluations. Standard management of existing suppliers.

Supplier Adoption and Evaluation

Winmate's new suppliers are based on the company's future product requirements and procurement strategies to determine the management system and production capacity for potential suppliers, i.e. technological innovation capabilities, quality, and service must meet the requirements of Winmate. When evaluating new suppliers, they must all adhere and comply with various regulations (such as RoHS, etc.), and be by new supplier promotion procedures. The Winmate evaluation team will propose a questionnaire review document for HSF and various capabilities, and a substantive confirmation review by the evaluation team. Only manufacturers who have passed the supplier promotion process can become a qualified supplier of Winmate, and then start the verification and recognition of SPEC. related to the volume, weight, and function of the materials supplied. Afterward, the company will conduct annual evaluations every year to actively maintain the continuous supervision of its suppliers.

Winmate complies with ISO and various regulations. In addition to qualified suppliers as a necessary factor, it also considers whether the supplier's internal management has introduced ISO 14001, ISO 9001, QC 080000, safety and health systems, social responsibility management systems, etc. To understand the supplier's labor safety and health management profile, Winmate has built a relationship with the new supplier through a new method of supplier evaluation in 2019.

To maintain a high standard of suppliers, Winmate conducts frequent annual evaluations based on the various capabilities of the supplier, whereby necessary guidance is provided promptly, and unqualified suppliers are eliminated. Also, Winmate focuses on the integration of its supply chain system to maintain its competitiveness. For existing suppliers, there is an annual performance appraisal. According to their quality, delivery date, and degree of cooperation, they are divided into three levels: A, B, and C. A and B signify qualified vendors. Vendors that receive C in three consecutive years will be withdrawn from the list of suppliers. Alternatively, they will be replaced with suitable suppliers. In addition to the annual evaluation, non-scheduled quality assurance and procurement-related units will also arrange factory visits to audit and ensure the quality of existing suppliers.

2019 Annual Audit Result

Procurement Expenditure Ratio of Local Suppliers

Winmate promotes different projects at each stage of the product life cycle and cooperates with more than 500 suppliers worldwide, including electronic materials/mechanical parts/package materials, etc. As of 2019, there were 490 vendors (excluding general affairs) that took part in transactions, of which 455 are located in Greater China and 35 are located in other countries.

The Raw Materials Used and Management

Winmate is part of the industrial computer industry, whereby the use of raw materials is divided into renewable and non-renewable. Renewable materials include packaging materials/mechanical parts, whereas non-renewable material includes purchased modules. Regardless of whether it is recycled or not, the use of raw materials is based on a recognition process that complies with environmental protection regulations, international product recycling regulations, and waste packaging materials regulations.

Honesty and Commitment

Winmate is committed to the development of the business, and greatly emphasizes the importance of integrity. The company is against any illegitimate interests in collusion, bribery, and malpractice for personal gain. To maintain the integrity of the business, the company signed the "Incorruption Commitment" with the manufacturer, which is vital for the sustainable growth of both parties in the transaction.

Voluntary Compliance with the Code of Conduct for the Electronics Industry

Although Winmate is not a full member of the Responsible Business Alliance (RBA), the company has a global influence and therefore continues to voluntarily support the Code of Conduct for the Electronics Industry issued by the Alliance, including labor, health, and safety, Environment, Ethics, and Management System. In addition to complying with the "Code of Conduct for Responsible Business Alliance", Winmate also requires its suppliers in the supply chain to comply with environmental protection, health and safety, labor rights and conditions.

Prohibit Use of conflict Minerals

Conflict minerals are referred to as metals from armed conflict regions, illegal mining, human rights violations, and poor working environments. Conflict minerals are prevalent in areas operated by the armed forces of the Democratic Republic of the Congo and neighboring countries. Conflict minerals in this region include Tantalum, tin, tungsten, cobalt, and gold, which are used to fund armed conflicts in the region. The wide-use of such metals in the technology and manufacturing sector makes these minerals a risk in sustainable supply chain management. Since 2013, Winmate has completely banned the use of metals from conflict mining areas in its products. At the same time, it announced the "Conflict Minerals Procurement Statement" and required all suppliers to take corporate social responsibility to investigate the use of minerals in detail and complete the " RMI CMRT Conflict Minerals Survey Form” to ensure that products do not use the aforementioned conflict minerals.

Climate change is a global issue. In the global warming crisis, reducing carbon emissions and environmental damage is the responsibility of all companies. There exists a capacity for expansion along with hidden opportunities and risks, but companies must be prepared to meet such challenges in advance.

Climate Change Risk Management

By participating in various domestic environmental sustainability-related activities and understanding environmental-related issues from stakeholders, such as governments, investors, customers, and the general public, the following types of risk and potential opportunities have been evaluated:

To protect the environment and maintain the safety and health of all employees, a "Company Environmental Safety and Health Policy" was created. Winmate focuses on the production and development of rugged tablet computers and handheld devices. Its products are sold all over the world. To continue providing customers with high-quality products and services, and to integrate environmental management targets, green products, and the professional implementation of health and safety management – all to achieve the goal of sustainable development.

In addition to complying with relevant environmental protection regulations, we promise to reduce the environmental impact caused by activities and services in manufacturing and servicing processes. The goal is to create a situation where the economy and environmental protection can complement each other. Winmate promises to:

• Obey the law:
  Obtain, identify, follow, and comply with regulations and other requirements to reduce the environmental impact of Winmate's manufacturing and customer processes. All relevant information should be properly communicated to the employees.

• Reduce Impact:
  To effectively control environmental impacts, provide appropriate protective facilities and equipment, and create operating standards to prevent environmental impacts caused by hazardous substances and waste management.

• Continuous Improvement:
  Promote environmental policies aimed at cleaner production processes and pollution prevention, establish measures for controlling activities related to significant environmental impacts, and evaluate the effectiveness of the environmental management system as the basis for performance evaluation.

• Implement education:
  Improve the quality of employees, enrich their technical and professional learning skills, and determine their required capabilities to improve work performance. Make employees aware of personal responsibilities, and promote participation in environmentally-focused activities.

• Consultation and communication:
  Strengthen interactions with employees, the public, suppliers, and other stakeholders, establish channels for communicating environmental policies and related messages, and give appropriate responses.

Environmental protection management

The main manufacturing unit of Winmateis related to assembly production, which has a relatively small impact on the environment. The self-planning, establishment, and operation of process equipment in the factory area all consider energy efficiency. The following are environmental management items:

1. Water resources:
   

   • Water saving:
     There is no water used in the factory process, so water for people's livelihood is particularly important. In the toilet, the tap and urinals use the sensory water supply to reduce water waste. The total annual water consumption in 2019 is 566 degrees.

   • Wastewater discharge:
     The company is in the factory building, and shares the sewage system of the building, which is commissioned by qualified professionals and is tested and reported regularly. The final discharge of water is in a freshwater river basin; the discharge water test data in 2019 meets the legal standards.

2. Electricity consumption: mainly for lighting, air conditioning, and production.

   • Lighting equipment:
     At present, company lighting consists of T5 and T8-LED lamps. Light reduction measures are implemented in the office corridor area; there is also a light switch map in the factory area to make on-site personnel aware of where the lights are. Lighting is turned off in non-working areas to reduce power consumption.

   • Air-conditioning equipment:
     Commercial air-conditioning is used, with full heat exchange air, regular filter cleaning, and timing device settings to reduce power consumption. There is also a map of where all the air conditioners are located.

     

   • Production electricity:
     production machinery and burn-in tests are the main sources of electricity consumption. Production is based on a production schedule, where power is turned off during rest periods to avoid idling or unnecessary power consumption.

   • Winmate Indirect energy consumption
     

     

3. Waste management and treatment:
   aiming at safety, sanitation, harmlessness, and resource utilization. The company prioritizes proper waste treatment at the source to focus on environmental benefits. The waste disposal instructions are as follows:

   • Classification management:
     The resources and hazardous industrial waste are classified and managed in different areas. The name, diagram, and code of the waste are posted in each area to help personnel separate and classify the different types of waste. The waste disposal environment and storage conditions are routinely checked every month.

   • Manufacturing package materials:
     All packaging is recycled in a dedicated area, where the manufacturer regularly reuses the material when deemed suitable.

   • General household garbage:
     general waste is taken care of by the dedicated cleaning staff and is placed in the waste recycle area of the building, and handled by the cleaning and transportation company assigned by the building management committee. General waste in 2019 amounted to about 210,000 liters.

   • Food waste:
     Special food waste buckets are used for food waste, which is then collected and routinely processed daily by special personnel.

   • Office waste:
     waste is divided into different categories such as paper, foam, plastic, fluorescent lamp, battery, etc., which are cleaned and transported by the building cleaning staff into the recycling areas at regular intervals, and then handed over to qualified cleaning companies for recycling.

   • Hazardous industrial waste:
     electronic components, scraps, and defective products are categorized and stored in a special area to avoid pollution caused by co-storage with other waste material. After being cleaned and processed regularly by qualified cleaning companies, they will be sold according to proper laws and regulations. For sale, use, recycling, incineration, or sanitary burial, the total volume of hazardous industrial waste removed in 2019 was 430.5 kg.

   

Winmate is committed to the design and development of green products. The company not only complies with industrial environmental protection trends in the international market, but it also adopts green products as the company's basic obligation and duty to fulfill its part as global corporate citizenship. Product design thinking is based on the "product life cycle" whereby the environmental impact of various life cycles, such as raw material procurement, manufacturing, transportation and distribution, consumer use disposal, and recycling.

Green Products Management

To meet the environmental protection requirements of customers and the hazardous substance requirements of the products in the sales area, the green products manufactured by Winmate were introduced in 2009 to the IECQ QC 080000 Hazardous Substance Process Management System (HSPM) and passed the third-party fair unit verification to obtain the certificate.

• R&D and design:
  The quality assurance unit adheres to the green product environmental protection regulations and customer green product standard requirements, evaluates and appropriately revised the "No Hazardous Substance Management Procedure". The review of materials by the responsible unit helps to ensure that the materials meet the design requirements of HSF attributes.
• Manufacturing:
  The green products manufactured by Winmate are randomly selected by the incoming inspection unit every month, where they are commissioned by a third-party laboratory to test hazardous substances to ensure that the incoming materials meet the requirements of the "RoHS Hazardous Substances Testing Practice".

The impact, adjustment, and mitigation of global climate change have become one of the most important environmental issues in the world. To strengthen Winmate green initiatives, we must first understand our own environmental performance and hope that we can continue to improve from the inside out to create a company of sustainable value. Winmate evaluates the effectiveness of greenhouse gas management through carbon emission surveys and expects to positively contribute to reducing the overall national carbon reduction goals.

Goal and course

Winmate followed the requirements of the International Standards Organization (ISO) for greenhouse gas inventory in 2008 and ISO 14061-1:2006. After that, it carried out greenhouse gas inventory work every year and set 2016 as the base year for self-inventory declaration. At the same time, internal documentation and verification procedures were established to promote environmentally-focused participation for all employees. Winmate is a non-energy-intensive industry, whereby greenhouse gas emissions mainly come from purchased electricity that accounts for more than 90%. Therefore, the company strives to save electricity to reduce greenhouse gas emissions.

Greenhouse gas emissions

Winmate has been conducting greenhouse gas inventories every year since 2007. To achieve data consistency, the GWP value of the second assessment report published by IPCC in 1995 is adopted. The fuel default coefficient mainly adopts the version of IPCC 2006, and the power coefficient of the factory adopts the framework from the Taiwan Ministry of Economic Affairs Bureau. At present, Scope 3 (Scope 3) is not included in the scope of the disclosure. Scope 1 (Scope 1) and Scope 2 (Scope 2) greenhouse gas emission trends (2017~2019) are as follows:

Talent management

Winmate regard employees as an important asset. The company defends the rights of every employee by establishing a friendly workplace environment, provide a space for learning and growth, and do prohibits any discrimination related to gender, race, color, religion, nationality, and age. To promote the harmony between the workforce and management, unite all employees, and take into account employee ideas – an Employee Welfare Committee has been established to promote the various employee welfare measures, which includes employee group insurance, health checks, tourism activities, club activities, year-end activities, and various birth and marriage allowances. To strengthen the communication between labor and management, the channels for reflecting employee opinions, include employee suggestion boxes, employee complaints channels, satisfaction surveys, proposal systems, etc.

Recruitment and appointment

Winmate follows a rigorous process in appointments, starting from the annual manpower budget. Through multiple channels of talent recruitment, selection, and appointment, the company strives to attract talents with excellent abilities in various fields, and seek employees who agree with the corporate philosophy.

Human growth

Increased from 332 in 2015 to 430 in 2021, The number of employees has stabilized.

Staff profile

As of December 2019, the number of Winmate employees was 353 (193 men and 160 women), which consists mainly of full-time employees (and 1 part-time employee). The scope of work is in Taiwan. All senior executives are Taiwanese. Foreign employees are restricted by the law to sign fixed-term contracts, and the rest of the employees are hired under irregular contracts. The employees' age, gender, job category, education background, special status, and type of labor contract are shown in the figure below:

Manpower statistics in 2021: 430 employees

Resignations in 2019 (excluding resignations within three months of the probation period): 60

The salary ratio of male and female employees

Childcare leave without pay

According to the "Gender Work Equality Act", employees who have served for six months can apply for childcare leave without pay before each child reaches the age of three. The period is until the child reaches the age of three, but not more than two years. The relevant statistics are as follows:

Talent Education

Winmate adheres to the concept of "cultivating talents and caring for employees", to help employees develop and achieve the company's common goals. An excellent operating model was established and follows the talent development quality management system (TTQS) to formulate "PDDRO" "Education and Training Management Procedures". This helps to organize various studies and training to enhance the employees' professional skills and knowledge, which in turn helps to strengthen their work attitudes.

Establish a core training system for talent cultivation and development, including OJT (On the Job Training), Off-JT (Off the Job Training), and S.D (Self Development) to provide employees with an open and diverse learning environment. Employees also go through KSA (Knowledge, Skill, Attitude) function inventory, as well as regular performance appraisal and interviews, which are also supplemented by career planning, job rotation, and project assignment, the training system is introduced to make up for the gap inability, and even improve employee functions to strengthen employee competitiveness.

Employees are the most cherished asset. Once they become part of the Winmate family, special personnel from the unit are arranged to provide OJT tutoring. In addition to online course learning, physical classes are regularly set up for newcomers to give them enough resources, so they become familiar with the company environment and operating procedures. External training is also dispatched on an annual basis, where external professional lecturers are arranged to offer "system verification", "professional knowledge", "core function general knowledge" and "management courses". Knowledge is then transferred and exchanged internally to further promote active learning. To actively improve the company culture, each employee aims to contribute what they have learned, improve their quality and level of work, and excel in work, training, and personal career development. In addition to OJT, SD, online courses, and counseling, the number of courses in 2019 exceeded 200 classes, with more than 4,200 participating colleagues, whereby the average training hours per person was about 10 hours.

Performance management

To truly understand the abilities and working status of employees, Winmate conducts regular performance appraisals for all company employees twice a year. The probation period for new employees appears within three months of their employment. The appraisal content includes work review, performance results, and schedules. Set future goals as the basis for the implementation of rewards and punishments, training planning, salary, job adjustments, etc., all of which are used to improve employee performance and overall company performance.

In 2019, the percentage of full-time employees at Winmate who received performance appraisal was 100%.

• Human rights management

  Winmate Inc. believes that respecting human rights and promoting a decent work environment are important throughout the Company and its supply chain. Winmate Inc. abides by local laws and regulations in all countries and regions where we operate, and upholds the human rights of all workers, including regular, contract and temporary employees, and interns. We also require our suppliers to act in the same fashion, as addressing human rights issue in complex supply chains is a shared responsibility. We support the UN Universal Declaration of Human Rights (UDHR), and are committed to treating all workers with dignity and respect as understood by international human rights standards. The guiding principles for Winmate’s Human Right Policy are as follows, and Winmate’s Supplier Code of Conduct requires all of our suppliers to follow the same standards. Guiding Principles:

  1. Legal Protection：Embed respect for economic, social, cultural, civil, and political rights, as well as the right to development, in the way we operate, provide a safe and secure work environment that is free of harassment, Eliminate unlawful discrimination and ensure equality in the workplace.

  2. Zero tolerance for child labor：No workers under the age of 16 will be employed, and applicants will be identified and verified accordingly.

  3. Non-discrimination：Protect labor rights of vulnerable groups or marginalized groups such as indigenous peoples, women, migrant workers, contracted labor and persons with disabilities.

  4. Prevent Workplace Violence and Sexual Harassment：Maintain gender equality at work and dignity, prohibit any coercion, violence, sexual harassment.The "Sexual Harassment Prevention Measures and Punishment Measures", "Work Standards for Prevention of Violence in the Workplace and Grievance Management" were established, whereby complaint mailboxes and hotlines were set up to provide employees with communication channels when their legal rights were violated. In 2019, there were no violations related to human rights, discrimination, forced labor, or sexual harassment.

  5. Freedom of association：All employees have the right to freedom of association and negotiation. Through collective negotiation, a harmonious relationship between management and the workforce can be established.

  6. Provide transparency in Whistleblowing and Grievance Channel：We have established "Standards of Practice for Whistleblower Investigations" to enable our suppliers, business partners and other stakeholders to report unethical behavior, misconduct, violations of law.

  
  

Human Resources Policy

• Salary management

  Salary principles follow certain laws and regulations. The starting salary is never less than the basic salary stipulated by the law. The company provides a fair and reasonable salary based on employee position, academic experience, professional knowledge, and reference to the market salary level, regardless of gender, race, color, religion, or nationality. Regular performance appraisals and market salary surveys are conducted to adjust the salary, to give back to employees, and attract the promotion and retention of outstanding talents while promoting employment opportunities.

• Retirement protection

  To stabilize the life of employees after retirement, the "Labor Retirement Measures" were established by the law, and the Labor Retirement Reserve Supervision Committee was established. By the provisions of the Labor Standards Law, retirement reserves were regularly allocated and stored in a special bank account in Taiwan to protect labor rights.

  1. Employees who took up the job before July 1, 1994: a monthly labor retirement reserve of 2% of the total monthly salary is allocated, supervised by the labor retirement reserve supervision committee. The balance of the pension reserve account at the end of 2019 was 12.64 million yuan.

  2. Employees with applicable labor pension regulations: a monthly labor pension of 6% of the monthly salary is allocated and stored in the employee's personal labor pension account.

Employee Benefits

Winmate has set up an Employee Welfare Committee (referred to as the Welfare Committee) by the "Employee Welfare Regulations", and uses welfare funds to promote various welfare measures, protect employees' quality of life, and enhance labor-management harmony. Welfare comes from the monthly allocation of 0.05% of the company's total operating income and 0.5% of the employee's monthly salary.

To provide employees with the best care and protection, group insurance has been planned for employees, so that employees can obtain complete coverage. After work, employees are encouraged to convene and organize clubs for a better work-life balance.

Although Winmate has not introduced the ISO 45001 occupational safety and health management system, the company aims to prevent occupation disasters to help ensure the health and safety of all employees, which also follows occupational safety and health-related regulations. The company established a first-level management unit for health and safety affairs, along with an occupational health and safety committee. The general manager serves as the chairman of the board to manage plans for the health and safety of all employees. There are 10 members in the committee, 6 of which are workforce representatives – and the proportion of these members exceed 50% of the committee.

Also, emergency management procedures and various operating standards have been set up, whereby independent equipment inspects are conducted. Also, health and safety measures such as fire protection, general hazard educational training, chemical management in factory conditions, and the prevention of occupation disasters are all implemented. As a result, employees can gain a deeper understanding of how to handle equipment, and also reduce human-related injuries in the long term. Moreover, fire-fighting equipment and drills are also routinely conducted to ensure a safe and low-risk work environment.

The company has no fatal occupational accidents in 2019, whereby there were only two accounts of damage. The main reasons relate to traffic accidents and human-induced injuries; the human-induced hazard uses KIM human-induced hazard risk assessment indicators to implement personnel operation assessment, deploy personnel operation status, and reduce harm. Also, moving tools (vacuum movers) to move heavy or difficult objects were purchased for this purpose.

1. Frequency of Disability Injury (FR) = Number of Disability Injuries × 10⁶ ÷ Total Working Hours
2. Disability injury severity rate (SR) = total number of days lost by disability injury × 10⁶ ÷ total working hours
3. Total damage index = (FR×SR÷1,000)^½
4. Occupational disease rate (ODR) = total number of occupational diseases × 10⁶ ÷ total working hours
5. Absence rate = personal leave + sick leave/ number of hours due to attendance × 100%

Safety and health field

• Health Management

  Employees are an important asset of the company, and we hope that all employees have a healthy body and mind. Winmate provides employees with all-round care, regular annual health checks, inspection items that exceed regulations to effectively monitor the health of all employees. Nursing staff adopts hierarchical management and provides care and tracking for employees with potential health risks, whereby employees have access to health consultations and education with resident physicians. These incentives help employees better understand their own physical conditions, and provide follow-up medical consulting services. "Management for prevention of human hazards", "Management for prevention of diseases caused by abnormal workload", "Management for prevention of workplace violence and grievance" are also established to prevent employees from overworking. In terms of hardware, engineering improvements, protective equipment, and personal protective equipment are all provided to reduce employees’ exposure to hazards and reduce the risk of occupational diseases.

• Health promotion

  1. Cancer screening:
     Cancer is the top ten leading causes of death. In addition to including colorectal cancer screening as the basic health check-up item, Winmate also organizes cervical smears from time to time to care for the health of female employees.

  2. Healthy meals:
     healthy meal options are available to help employees reduce their intake of oil and salt, which in turn reduces the risk of diseases and also promotes healthy weight loss.

• Breastfeeding Room

  Having a proper breastfeeding environment is imperative, and Winmate provides a supportive environment for breastfeeding mothers. Nearly half of our female employees are women of childbearing age. Considering that when mothers return to work after maternity leave, the breastfeeding room will enable mothers to take better care of their children. In addition to providing breastfeeding policies by the law, Winmate also provides a comfortable and undisturbed breastfeeding room. The company stipulates maternal health protection and management operations by combining the professions of resident physicians, human resources, occupational safety personnel, and supervisors to ensure that the physical and mental health of pregnant, post-natal, and breast-feeding female colleagues, are all taken care of.

  

  

Winmate is part of a big caring family. In addition to pursuing high-quality growth and operational performance, Winmate also hopes to achieve the goal of sustainable operations by caring for its employees. The company follows the principles of "benefitting society". The mission of serving as social corporate citizenship, caring for the society through specific actions, urging the company and the society to become an inseparable partnership, and actively exerting corporate influence.

High-quality scientific and technological talents are the foundation for the sustainable development of the industry. Through the industry-university cooperation project, Mingzhi University of Science and Technology students are provided with off-campus internships, so that students can shorten the learning gap, get to know and familiarize themselves with the workplace early so that owners can also find employees through internships. Also, we carry out project-based industry-university cooperative research projects with National Taiwan University and Taipei University of Technology to jointly build a platform for R&D and technology cooperation.

• Passionate Help

  Blood donation helps to alleviate shortages in the health sector. With the enthusiastic participation of colleagues, Winmate donated a total of 172 bags of blood in 2019.

• Care for the environment

  With the concept of "protecting the ocean and loving Taiwan", beach cleaning activities at the Beidi Beach at the intersection of Danshui River and the sea in Bali were planned. In this way, employees and their families and friends are aware of marine environmental protection. The activities serve to maintain a clean ocean and coastline for a more sustainable environment. A total of 25 people participated in this activity, picking up 50.69 kg of garbage.

  

  

• Caring for the disadvantaged

  Since 2011, the New Taipei City Government has promoted the "Full House of Happiness, Bank of Goods" program, combining various district offices, social welfare service centers, New Hope Care Center, and civil social welfare service units to jointly handle the integration of civil resources and the delivery of welfare services. Donations from well-meaning people from all walks of life and corporate groups have effectively distributed the love of all parties to the hands of disadvantaged families. This in turn becomes a foundation for welfare sharing. In response to this event, Winmate delivered materials to the Sanchong District Office, where social workers of the physical bank will obtain appropriate resources for high-risk and disadvantaged families in need.

  Winmate cares for disadvantaged children at Taiwan Care Home and has subsidized a one-day trip to North Taiwan so that children can broaden their knowledge, entertain and educate, and promote physical and mental health.

• Spread the Love

  Winmate recycled a total of 23 empty toner cartridges and donated the recycling money to Xinlu. The goal is to positively contribute to this planet.