Sustainable Governance

• Materials and Product Procurement: Cover the sourcing of raw materials, components, finished goods, and services to ensure compliance with sustainability requirements.
• Supplier Relations: Establish standards for supplier selection, evaluation, and collaboration to ensure sustainability across the supply chain.
• Environmental Considerations: Address procurement-related environmental issues such as resource conservation, energy efficiency, waste reduction, and carbon footprint minimization.
• Labor and Human Rights: Ensure suppliers’ labor conditions meet international standards and safeguard human rights.

In response to accelerating impact of climate change, effective supplier management is one of the key strategies the company employs to fulfill its social responsibility commitments. The procurement department follows ISO 9001 Supplier Management Procedures, which outline quality and environmental requirements for suppliers, and mandates key documents be signed, including the “Integrity Commitment Statement,” “Environmental Protection Declaration (related to hazardous substances),” “Supplier Social Responsibility Assessment Form,” and the “Responsible Business Alliance (RBA) Code of Conduct Commitment Statement.” Since 2019, Gemtek’s Green Supply Chain EHS Approval Platform has enabled suppliers to upload signed compliance documents, streamlining follow-up management and data tracking. By promoting information sharing, the platform enhances visibility into market and supplier trends and supports the development of sustainable supplier relationships and long-term sourcing strategies.

Gemtek Technology's Supplier Commitment Statement Signing Status (Past Three Years)

Note: As certain suppliers are designated by customers, they are not able to sign Gemtek's standard procurement agreement, which has contributed to a lower-than-expected document return rate. To reinforce supplier commitment to integrity and ethical conduct, Gemtek has introduced a standalone "Integrity Commitment Statement" for such cases, ensuring that the principles of ethical business practice are upheld across all supplier relationships.

Annual RBA evaluation methods of key suppliers, which include both on-site and document-based audits, focus on risks related to corporate governance, environmental protection, and social responsibility. These areas encompass specific aspects such as child labor, forced labor, health and safety, freedom of association, discrimination, disciplinary practices, working hours, wages and benefits, environmental management, business ethics, and supplier management.

In 2024, a total of 20 key suppliers were audited, including 19 through on-site audits and 1 through a document-based review. All suppliers passed the audit without any major nonconformities.

Material Shortage Risk Assessment

As part of its supplier management practices, Gemtek Technology not only conducts relevant surveys and evaluations during the supplier selection process but also performs major risk assessments. These assessments include identifying potential risks such as material shortages caused by events like the COVID-19 pandemic, labor disputes, and political or economic instability. For suppliers in affected regions, Gemtek seeks to understand their specific circumstances and thoroughly evaluate their response capabilities. The company also collaborates with suppliers to develop appropriate contingency plans and implements preventive measures across the supply chain to mitigate operational disruptions and safeguard stakeholder interests.

To support local procurement, each Gemtek facility strategically plans its purchasing activities based on location and timing to reduce operational costs and risks, and to lower transportation expenses and carbon emissions. By enhancing supply chain quality and service and closely monitoring raw material supply, the company ensures more stable production operations and creates sustainable value. In 2024, local suppliersNote accounted for 40% of Gemtek Technology’s total procurement spend across all facilities.

Note: 
1.Taiwan Headquarters: Local suppliers refer to those based in Taiwan.
2.Gemtek (Kunshan) Plant: Local suppliers refer to those based in Mainland China.
3.Gemtek Vietnam Plant: Local suppliers refer to those based in Vietnam.

Gemtek is committed to supporting conflict-free mineral sourcing and requires its suppliers to comply with RBA standards in a joint effort to uphold corporate social responsibility. In accordance with the OECD Due Diligence Guidance, Gemtek regularly reviews the sources of its materials to ensure that metals such as gold (Au), tantalum (Ta), tin (Sn), tungsten (W), cobalt (Co), and mica are not sourced from mining operations associated with illegal groups, forced labor, or other human rights violations.

Conflict-Free Minerals Policy Statement

• The company upholds its responsibility to comply with social and environmental standards. 
• The company rejects the use of minerals originating from regions associated with armed conflict or human rights violations. This includes, but is not limited to, mining operations in the Democratic Republic of the Congo (DRC) and its neighboring countries, as well as conflict-affected and high-risk areas as defined by the OECD or other equally recognized organizations. 
• The company conducts due diligence to trace the sources of gold (Au), tantalum (Ta), tin (Sn), tungsten (W), cobalt (Co), and mica used in its products. 
• These requirements are communicated to upstream suppliers, and the company encourages smelters to obtain certification through the Responsible Minerals Assurance Process (RMAP). 
• Cobalt suppliers are required to disclose the smelters from which their materials are sourced and ensure that mining activities are free from child labor, hazardous working conditions, and other human rights violations.

In accordance with the Responsible Minerals Initiative (RMI), Gemtek Technology conducts annual conflict minerals due diligence for all suppliers with whom it engaged in transactions during the preceding year. Quality assurance specialists are responsible for reviewing suppliers’ conflict minerals reports and tracking relevant regulations. In 2024, Gemtek Technology issued due diligence requests to 677 suppliers, with 620 completing the survey, resulting in a 91% completion rate. Among them, 230 suppliers reported the use of gold (Au), tantalum (Ta), tin (Sn), tungsten (W), cobalt (Co), or mica. All of these suppliers sourced their raw materials through legitimate channels, and the smelters they identified were verified against the latest official RMI database to confirm that each is a recognized and properly registered facility. None of the reported minerals originated from conflict-affected or high-risk areas. For suppliers identified as high-risk or unresponsive regarding conflict minerals, Gemtek will evaluate whether to continue the business relationship or seek alternative sources of materials. If necessary, the company will immediately suspend transactions and terminate cooperation with those suppliers. Business activities will resume only after the supplier provides a clear response and Gemtek has verified that all associated risks have been fully mitigated.

Gemtek Technology values the feedback and concerns of its suppliers and is committed to protecting the confidentiality of whistleblowers. Suppliers may file complaints or raise concerns through the ESG section of the company website or by emailing Gemtek_suggestion@gemteks.com. Designated personnel are responsible for handling and responding to all submissions.