Market-leading corporate governance policy continuously, following Principles for Responsible Investment (UN PRI), launched a US$1million green investment project

The latest major governance development, Following Principles for Responsible Investment (UN PRI), launched a US$1million green investment project. The investment target is Cathay Private Equity Ecology Limited Partnership on August 19th 2020.

WT has developed Social Policy & Code of Conduct, UNCAC Anti-corruption Policy and SDGs Policy in 2020 that take into account the concept of shared value and frameworks such as the UN Global Compact, International Labor Standards, OECD Guidelines for Multinational Enterprises, and the UN Sustainable Development Goals (SDGs).

WT believes that ethical governance is a core requirement of doing business, a competitive advantage, and the right thing to do. Our ethical leadership inspires confidence in our Company's future and creates a safe, supportive work environment for our employees. WT Social Policy & Code of Conduct was set high standards as policy of governance for implementing.

The WT Social Policy & Code of Conduct affirms the principles that guide the behavior of employees, subsidiaries, members of our Board of Directors regarding their activities, independent contractors, consultants, suppliers, and others who do business with us.

Through the Social Policy & Code of Conduct which is available in 2 languages, we seek to promote honest and ethical conduct, deter wrongdoing, and support compliance with applicable laws and regulations. We also communicate our ethical expectations, including compliance with our code principles and policies, to our suppliers and third parties.

Please go to the official website Convergence Page to learn more about WT ethics values, principles, standards, and norms of behavior.

_US$1_million

The latest major governance development, Following Principles for Responsible Investment (UN PRI), launched a US$1million green investment project. The investment target is Cathay Private Equity Ecology Limited Partnership on August 19th 2020.

Highest governance body

Excellent governance performance in 2020 and sweep 6 glory awards

Financial Times
The 500 Asia Pacific High Growth

WT strong revenue growth year of the year (Y-o-Y), was selected by the Financial Times as The 500 Asia Pacific High Growth Companies.

Taiwan Stock Exchange
The top 5% best result in the 7th governance ranking

WT won the top 5% best result in the 7th governance ranking by Taiwan Stock Exchange (TWSE). A total of 905 companies are regulated by TWSE and 712 companies regulated by Taipei Exchange which is serving the over-the-counter (OTC) market were evaluated this year. The meaning of the top 5% results is the highest scoring range in this appraisal, and only 45 listed companies have won the honor.

WT has demonstrated excellent outcome of corporate governance, including safeguarding increasing shareholders power, strengthening the operation of the Board of Directors, enhancing information transparency and implementing corporate social responsibility.

WT was also ranked in the top 10% of the "electronics category with a market value of over 10 billion". It means the highest scoring in this category.

Taiwan Stock Exchange
Taiwan High Salary 100 Index

WT was honored in Taiwan High Salary 100 Index by Taiwan Stock Exchange. This is the largest stock exchange in Taiwan, and the top 100 listed companies are selected to rank in terms of profitability and salary scale. This award shows that our salary and benefits are the benchmark in the industry.

COMMONWEALTH MAGAZINE Taiwan
No. 1 of 2,000 large companies ranking

WT was ranked No. 1 in the category of information, communications, and IC channels. No. 4 in the service industry. The most profitable in the service industry ranked 28th in this award by by COMMONWEALTH MAGAZINE Taiwan which is one of Taiwan's most iconic financial magazines, its 2,000 large companies rank.

Harvard Business Review Traditional Chinese
Honord Taiwan CEO TOP 100

WT Chairman was honored as Taiwan CEO TOP 100 by Harvard Business Review Traditional Chinese.

TCSA
Bronze Award for CSR Report

WT was honored Bronze Award of 2019 WT CSR Report by Taiwan Corporate Sustainability Awards (TCSA).

Chairman authorized approved ESG policies and three committees supplemented to compose sustainable portfolios by Boards

Regarding the transparency of the WT highest governance body, please kindly refer to WT 2020 Annual Report.

Environment, Social, and Governance (ESG) policies are approved by the chairman authorized by the Board of Directors. The Board of Directors is also the highest-level corporate organization authorized by ESG policies. It regularly receives reports from management executives to understand the types of ESG risks faced by the company and ESG management. The management is responsible for determining ESG risks and risk control related to major operating activities; incorporating ESG risks into the overall strategy; and formulating plans and recommendations to determine the adequacy of risk identification, the balance between potential risks and potential returns, and the control of ESG risks.

In 2020, we established a Risk Management Committee. The risk management committee is a functional committee under the board of directors. It is composed of 3 independent directors, the chairman of the board and the chief financial officer. Kung-Wha, Ding is in charge of the moderator. Kung-Wha, Ding served as Deputy Commissioner of the Securities and Futures Commission, Ministry of Finance, Chairperson of Taipei Exchange and Chairperson of Taiwan Depository & Clearing Corporation, with expertise in securities management, financial finance and corporate governance. Terry Cheng and Chairman Eric Cheng, both have rich industry experience and enterprise management. Elaine Kung has ROC, USA and China CPA. Chief Financial Officer Cheryl Yang also has more than ten years of professional accounting manager qualifications.

43_%

Directors practices gender equality, and the proportion of female directors is 43% in 2020.

Internal Audit

Internal Audit Department

Our Internal Audit Department is an independent unit under the Board of Directors. A total of three full-time Internal Auditing Officers and his/her affiliated auditors are allocated. The appointment and dismissal of the company's internal audit supervisor are approved by the Audit Committee and passed by the Board of Directors. The appointment/dismissal, evaluation/review, salary/compensation of internal auditors of the Company are handled in accordance with the Corporate Governance Best Practice Principles, and shall be submitted by the chief internal auditor to the Board of Directors for approval and to evaluation and review at least once a year.

Internal Audits Purpose

The purpose of internal audits is to assist the Board of Directors and managers in inspecting and reviewing defects in the internal control systems, measure operational effectiveness and efficiency, and to make timely recommendations for improvements to ensure the sustained operating effectiveness of the systems and to provide a basis for review and correction.

Internal Audits Work

The Department shall implement regular auditing based on the annual audit plan,which is passed by the Board of Directors and based on the identified risks. The Department shall also implement special audit plans separately based on actual needs. After implementing each audit, the Department shall present the audit reports and follow-up reports, and submit them for review by the Audit Committee before the prescribed statutory date. The officer of the Department shall attend and deliver a report on the situation of each audit plan to a regular board meeting.

The Department shall supervise all internal departments and subsidiaries to conduct self-assessments once a year and implement the company's self-monitoring mechanism. The Department shall adjust the design and implementation of the internal control system in a timely manner in response to changes in the environment.The Departments shall review the self-inspection reports and evaluate the overall efficacy of all internal control systems to serve as the primary basis for the Board of Directors and General Manager to produce Internal Control System Statements.

The risk management policy was approved by the board of directors, covering purpose, scope, organizational structure, management procedures, types, and risk assessment in 2021.

Risk management organization structure

Board of Directors:
The Board of Directors is the supervisor of risk management and the highest governance body. With the goal of complying with laws and regulations, promoting and implementing risk management, it elevates risk management policies, and continuously supervises the effective operation of the risk management mechanism, and is responsible for the ultimate responsibility of the risk management system.
Risk Management Committee:
Risk Management Committee could be report to the Board of Directors directly, and is responsible for reviewing the appropriateness of risk management policies and risk management structures, reviewing major risk management strategies, including risk appetite or tolerance, reviewing management reports on major risk issues, supervising improvement mechanisms, and regularly reporting to the Board of Directors implementation of risk management.
Auditing Office:
The Auditing Office is directly affiliated with the Board of Directors. Its responsibilities are independent supervision and quality assurance, internal control system revision and promotion, and auditing business planning and execution. It submits an annual audit plan based on the results of the risk assessment every year, and reports the execution results to the audit committee and the Board of Directors.
Accountability Unit:
Each Accountability Unit is responsible for the actual implementation of risk management, and the head of the accountability unit is responsible for analyzing, monitoring and reporting the risks faced by the business under its jurisdiction, and ensuring that the risk management mechanism and procedures can be effectively implemented.

Risk management policy

For the purpose of enforcing the company's risk management mechanisms and strengthening corporate governance while reasonably assuring the Company's strategies, plans, and targets are achieved, the Board of Directors passed the risk management policy on January 5, 2021. The policy provides the top principles for risk management. The policy covers the purpose of management, the scope of risks, organizational structure and responsibilities, management procedures, risk categories, and risk management operations and implementation evaluation. Risks arising from the business activities are kept within the range of tolerance in order to achieve sustainability and stability.

Risk category

Operational risks:
Market structure and demand, industry development and competition, sales or procurement concentration, product and raw material prices, product development and services, business model changes.
Financial risks:
Inflation, financing, liquidity management, dividend distribution, exchange rate, interest rate hedging, financial investment.
Legal compliance risk:
The risks that may arise from failure to comply with various laws and regulations or the legal risks that may infringe on the company's rights and interests.
Information security risks:
Information assets may suffer unbearable risks, and the confidentiality, integrity and availability of the information cannot be guaranteed, including unauthorized persons who can still access the information.
Environmental risks:
The impact of environmental issues such as climate change and natural disasters on business operations and financial impacts, and identification of greenhouse gas emission management.
Other risks:
In addition to the above risks, if there are other risks that may cause the company to incur significant losses.

Risk management implement

WT set up a risk management committee in 2020 to actively implement the risk management mechanism. The risk management committee meets at least once a year, and may convene at any time as needed, and reports to the Board of Directors on the operation of risk management once a year. The operation is as below:

The Board of Directors passed a resolution to create the risk management committee and formulate organizational procedures for the risk management committee on November 6th 2020. And appointed a total of 5 members of the first risk management committee. It is included independent directors Kung-Wha, Ding, independent directors Terry Cheng, independent directors Elaine Kung, chairman Eric Cheng, chief finance officer Cheryl Yang.
The Risk Management Committee formulated the risk management policy on January 5th 2021 and submitted it to the Board of Directors for approval. It also assessed the risk of exchange rate fluctuations and the trade war between China and the United States submitted it to the Board of Directors for discussion.
The Risk Management Committee on January 5th 2021 and it will report to the Board of Directors on the operation of the 2020 Risk Management Committee.
The Risk Management Committee will evaluate the risk and management response of information security and submit it to the Board of Directors for discussion on March 18th 2021.

Risk Management Committee was established in 2020

Business Continuity Planning & Precautionary Principle

The COVID-19 pandemic that broke out in 2020 has become an unavoidable focus in the Business Continuity Planning (BCP) of global companies.

ISO 22301 management systems

WT adopted the ISO 22301 security and resilience business continuity management systems as one of the BCP policies.

The UN Environment Programme

The UN Environment Programme official youtube channel released a film on the official youtube channel and the key point is as below and applying as the policy of one of our BCP.

75% of these emerging infectious diseases come from animals.
Climate change changed the survival habits of animals.
Human Being illegal wildlife trade
Nature is sending us another wake-up call with the COVID-19 pandemic.
Our destruction of nature is hurting humanity.
We must rebuild by working with nature, we can not go back to business as usual.

The Rio Declaration from the United Nations

Meanwhile WT also referenced The precautionary approach was introduced by the United Nations in Principle 15 of 'The Rio Declaration on Environment and Development'. It states: 'In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities'. Applying the Precautionary Principle can help an organization to reduce or to avoid negative impacts on the environment.

Data Center Remote Backup Mechanism

Specifically, WT has established a remote backup mechanism (Remote Backup), which exercises regularly once a year. The main data center of WT is located in geographic location A, and the same data center is established in geographic location B. Daily data will be synchronized with each other or one-way backup. In the event that a certain data center cannot operate due to various reasons, such as heavy rain, earthquake, heavy snow, fire, or flood, another data center can take over the operation.

Work From Home (WFH) has worked well with Information security and high traffic broadband

When the pandemic is spreading, "How to make all colleagues work remotely smoothly?" has always been a very important measure for our continued BCP.

100% of all WT employees have configured laptops. The headquarters purchase high-traffic network bandwidth and information security video software.

A series of rigorous implementations have allowed the WFH to proceed well and maintain the company's daily operations.

The main data center of WT is located in geographic location A, and the same data center is established in geographic location B. Daily data will be synchronized with each other or one-way backup. This is one of the BCP policies.

Official whistleblower program and zero tolerance on corruption structure well-functioning mechanism for all entity

Zero tolerance on corruption. Transparency around incidents of misconduct and our Company's response to those incidents creates an environment where employees feel comfortable raising concerns.

Proactively communicated to employees.
An independent, reporting hotline and email available Official Website Whistleblower Pages.
Available to suppliers, customers, and other third parties the independent, reporting hotline and email.
Available in local languages.
Possibility for anonymous reporting and reports are treated confidentially.
Structures in place to process whistleblower reports which are the Board of Directors, Chairman, Auditing Office and Attorney general.
Disclosure on the number of reports received, the types of misconduct, and measures are taken Available in local languages. In 2020, there are no confirmed incidents of corruption.
Compliance with ethical training: We hope that employees can fully understand the company's policies, procedures, and control measures to protect the company and employees from potential risks of laws, regulations, or disciplinary actions.
For employees, we arranged ethical courses every year. There are 1,013 employees participating and the completion rate is 100% in 2020.
For new employees, we set up 35 ethical courses with 73 trainees in 2020. The courses is including "Corporate Governance Best Practice Principles", "Corporate Social Responsibility Best Practice Principles", "Ethical Corporate Management Best Practice Principles", "Codes of Ethical Conduct", "Procedures for Ethical Management and Guidelines for Conduct" and "Supplier Code of Conduct".

                                1013
                                Employees
                            

There are 1,013 employees trained in anti-corruption courses in 2020.

Former Taiwan Chief Justice Lai In Jaw gave a speech for executive-level body

Former Taiwan Chief Justice Lai In Jaw gave a speech for the WT executive-level body on July 17, 2020. Taking the social responsibility feedback of global companies in the face of the severe COVID-19 pandemic as case study.

He elaborate from a global perspective to explain the fundamental operation of the capital market and must be based on ethical principles.

Could corporations ignore things other than profit? Does the owner abuse power? Did the CEO care about the common interests of the society? In fact, the approach of profitability and CSR could be a win-win situation and inspire employees.

Former Chief Justice Lai explains the fundamentals of capitalism and must be based on ethical principles quoting the ancient Buddhist holy book.

Chairman Eric Cheng (left) presents a souvenir to Former Taiwan Chief Justice Lai In Jaw (right).
Former Taiwan Chief Justice Lai In Jaw (left) gave a speech for the WT executive-level body.

Well known experts of corporate governance visit WT Board of Directors to share expertise

We invited Professor Ma Xiuru from National Chengchi University and Hetong Venture Capital Group's Chief Auditor Edix Fang to give lectures on corporate governance for the Board of Directors and senior executives on November 20th 2020.

Professor Ma said that internal audits include 1. Control environment, 2. Risk assessment, 3. Control operations, 4. Information and communication, and 5. Supervision operations, and follow the ethical values of directors, senior executives and employees. She explains the core value of corporate governance is ethical leadership. The ethical management approach for executive-level, director and employees.

Professor Ma (left 1) gave a speech, WT independent directors Terry Cheng (left 2) and Kung-Wha, Ding (right 2) attended.
Edix Fang, Chief Auditor of Hetong Venture Capital Group Holdings, made a speech.

2020 CSR Report

Market-leading corporate governance policy continuously, following Principles for Responsible Investment (UN PRI), launched a US$1million green investment project

Highest governance body