1. Development strategies

Utechzone devotes in new technology application and customer satisfaction improvement. We also attach importance to fulfill social responsibility. Utechzone believes that sustainable growth of the supply chain has a profound influence on the development of an enterprise. Therefore, we invest resources into collaboration with our suppliers and strive to build partner relationships with them, to achieve sustainable development while aiming for greater profits.

2. Supplier management

a. Selection and evaluation of suppliers

To pursue mutual growth and sustainable management, Utechzone has established management regulations and measures for suppliers producing raw materials. These include evaluation of new suppliers, supplier management, and regular evaluation mechanisms, enabling the Company to select suppliers offering the quality, pricing, delivery date, and technical proficiency that meet the Company’s requirements, to ensure that the products can be supplied steadily and satisfy the standards of the Company.

Supplier rating and corresponding measures are as follows：

Regularly conduct supplier assessment in January every year. Total of 152 suppliers have been evaluated in 2022 (supplier with annual delivery amount reaches NTD 1 million), including 18 suppliers with grade A; 133 suppliers with grade B; 1 supplier with grade C and 0 supplier with grade D. Procurement is not allowed and quality improvement is requested for supplier with grade C.

b. Safety and sanitation management

Concerning safety and sanitation, the terms of the contract have specified that Utechzone reserves to right to request suppliers that have violated the labor safety and health laws or environmental protection regulations to correct the deficiencies within a set period, or else they will be fined according to the “Penalty Clauses”; if the suppliers have failed to improve within the time limit, or the suppliers are at risk or have already experienced occupational accidents or environmental pollutions, the Company has the right to request the suppliers to either partially or completely suspend operation until the deficiencies have been completely corrected.

For suppliers working on construction projects within the factory premise, they shall attend the safety and sanitation education classes conducted by the Company and be requested to familiarize themselves with the Company’s various equipment, operational hazard notices, and precautions. After acknowledging all related regulations, suppliers shall sign an affidavit, declaring their willingness to adhere to all regulations. The occupational safety personnel will conduct unscheduled inspections within the factory environment, and will issue penalties to violators based on the “Penalty Clauses.” Violators will be suspended from proceeding with the construction before all deficiencies have been corrected.

※Equipment, operational hazard notices, and precautions:

1. Personnel working at heights must properly wear and use safety harnesses and helmets. Stair-type equipment can only be used during operation, as personnel is prohibited from standing on top, sitting, lying, or resting on them.

2. For operations reaching 1.5 meters or higher from the machine tools, equipment shall be utilized to safely ascend or descend.

3. For operation related to electricity, switch boxes must be properly attached with signs, locked, and labeled with notice, while insulating protective gear must be utilized.

4. For the maintenance, disassembly, and assembly operations of machine tools:

a. During power-off operations, switch boxes should be locked or labeled with notice.

b. During maintenance operation, notices shall be labeled, or personnel related to the operation shall be notified accordingly.

c. After the settings related to machine tools have been changed, all relevant operation personnel shall be notified of the changes to prevent subsequent operational errors.

5. For all hot work operations, designated fire watch personnel must be present with fire extinguishers and other safety measures being properly prepared.

6. Operation of processing machinery

a. When working with processing machinery, appropriate personal protective equipment must be worn, including safety goggles and safety shoes. To avoid drawing-in hazards, do not wear loose clothing.

b. Before operating the processing machinery, the machine’s normal operation must be first confirmed, with the machinery wear, lubrication, the rotating direction of chucks, and the location of machine stop switches being inspected.

c. The environment surrounding the processing machinery shall be kept clean and dry, and the passageways around the machines shall be uncluttered to prevent accidental tripping and electric shock.

7. The operational site must be indicated by safety cones, fences, and warning signs.

8. The site supervisor may not participate in the operation.

9. Steel-toe safety shoes must be worn during all worksite operations.

10. Cut-resistant gloves shall be used when transporting glass.

11. Do not bring cigarettes, betel nuts, and lighters into the factory premises. No eating or drinking is permitted on worksites.

12. Mobile phones with photography functions are allowed in the factor only after their lenses have been covered up by stickers; those who remove the stickers on their phones will have all the data in their phones deleted.