Material Topics and Management Strategies

Risk Assessment and Risk Management Strategies for Material Topics

CHPT integrates internal and external issues that directly or indirectly affect its business operations with the needs and expectations of its stakeholders to identify material topics that may have significant impacts on the Company’s sustainable development.

Based on these material topics, CHPT conducts risk assessments covering environmental, social, and corporate governance matters related to its operations and establishes corresponding risk management policies and strategies.

The risk assessments and management strategies for the Company’s material topics are as follows:

Category	Material Topic	Significance to CHPT	Risk Management Strategies
Governance	Corporate Governance	Transparent and sound corporate governance is of critical importance to the Company, as it facilitates sustainable development and ensures that the rights and interests of all stakeholders are fully protected and maximized.	• Improve the quality of information disclosure by periodically reporting the Company’s achievements, outlook, and actual governance performance to stakeholders through public platforms. • Hold Board meetings periodically to optimize governance-related regulations of the Company. • Strengthen the Board’s competence by arranging governance-related courses for directors on a regular basis.
	Operational Performance	CHPT strives to achieve industry leadership through technological innovation, enhances product value to deliver satisfactory services to customers, and maintains strong relationships with investors to reinforce corporate governance, thereby achieving long-term profitability and stable growth.	• Continue to engage in technological innovation and pursue industry leadership to achieve long-term profitability and stable growth. • Enhance product value and provide customers with satisfactory service quality. • Maintain sound investor relationships and strengthen corporate governance.
	Innovation and R&D	The significance of the Company’s research and development lies in its continuous investment in forward-looking technologies and innovative applications, as well as the cultivation of R&D talent, to ensure advantages in product design and system management, thereby promoting the inheritance and advancement of corporate culture and professional expertise.	• Continue R&D of forward-looking technologies and innovative applications and strengthen product design, R&D, and system management. • Actively cultivate R&D talent and reward outstanding R&D personnel to ensure the continuation of corporate culture and professional expertise.
	Supplier Management	Suppliers and contractors are important strategic partners of CHPT. The Company maintains strong collaborative relationships with them and jointly promotes sustainable supply chain management to foster mutual growth and shared prosperity within the industry.	• Require new suppliers to sign the Statement of the Code of Ethics and Business Conduct and undergo a Social Responsibility Risk Assessment. • Incorporate social responsibility risks into the risk assessment of major suppliers. • Promote corporate social responsibility among suppliers and require them to sign and comply with the Statement of the Code of Ethics and Business Conduct.
Environmental	Energy Management	To mitigate the impacts of climate change on the environment and ecosystems, CHPT has initiated carbon reduction programs starting from energy management, including equipment upgrades, optimization of operational models, and enhancement of employees’ energy-saving awareness, in order to achieve energy conservation targets.	• Improve processes and equipment for energy conservation through environmental objectives and improvement programs. • Establish energy conservation performance indicators for regular tracking and continuous improvement. • Promote employee awareness of energy conservation and carbon reduction.
	Water Resource Cycle	Through improvement action plans, CHPT increases the use of reclaimed water to reduce water use and consumption, realizing the common good with the environment and supporting business sustainability.	• Expand the use of reclaimed water through environmental objective improvement programs to reduce water consumption. • Establish performance indicators for regular tracking and continuous improvement.
	Waste Management	Through effective waste management practices, CHPT promotes sustainable resource utilization, reduces environmental burdens, and enhances its market competitiveness.	• Promote source reduction by encouraging reduced resource consumption, such as minimizing packaging and selecting reusable products, to decrease waste generation. • Strengthen waste classification education to enhance employees’ awareness and improve recycling systems to ensure recyclable materials are effectively reused, thereby reducing environmental impacts.
Social	Talent Development	CHPT continuously maintains an innovative and growth-oriented workplace environment that enables employees to continually enhance their competencies and provides sustained momentum for the Company’s growth.	• Establish annual training plans and develop a diversified education and training system to provide employees with greater access to learning resources. • Provide competency-specific training and development programs and implement job transfer and promotion systems.
	Employee Rights and Interests	CHPT values employee rights, interests, and benefits to ensure fair workplace treatment. The Company is committed to building a friendly workplace environment and strengthening employees’ organizational commitment.	• Hold labor-management meetings regularly to encourage employees to express their views and establish protective measures to ensure that employees can voice their opinions without fear of retaliation. • Establish sound regulations to protect employee rights and interests and actively address employee feedback.
	Occupational Safety	Zero workplace accidents are one of CHPT’s key goals, and providing a safe working environment is one of the Company’s responsibilities. CHPT builds a safe workplace through occupational safety management, education and training, and policy communication to ensure employee health and safety.	• Conduct process noise measurements in each production area every six months. • Conduct special health examinations annually. • Conduct regulatory work environment monitoring every six months. • Conduct radiation badge monitoring monthly. • Conduct scheduled self-inspections. • Identify changes in applicable laws and regulations monthly. • Convene Occupational Safety and Health and Environmental Protection Committee meetings quarterly. • Conduct annual education and training for emergency response personnel. • Conduct at least one plant-wide evacuation drill each year.