Supply Chain Management (Procurement)

The Company places great importance on sustainable supply chain management to ensure the efficient and effective delivery of products and innovations to its stakeholders. It also seeks to create opportunities for collaboration and joint business development with its business partners across environmental, social, and governance (ESG) dimensions, with the goal of achieving sustainable growth.

To support this commitment, the Company has established a Procurement Policy and Supplier Code of Conduct, which apply to its Critical Tier 1 Suppliers. These suppliers are manufacturers or service providers that directly engage with the Company and are considered critical based on factors such as high contract value, limited availability of substitutes, continuous purchasing requirements, and the supply of key raw materials essential to the Company’s production processes.

In addition, the Company has established a Procurement Working Group to drive sustainable procurement practices across the organization. The Working Group also promotes sustainable business practices among the Company’s critical suppliers, with an emphasis on value creation, transparency, efficiency, effectiveness, and accountability, in accordance with the following management approach:

Sustainable Procurement Process

The Company has established a payment policy for its business partners based on the principles of fairness, transparency, and accountability. The policy covers both the procurement of goods and the engagement of services, with a structured process encompassing supplier selection, the determination of appropriate payment terms based on the nature of each transaction, and review by relevant departments.

To ensure efficient financial management and alignment with the Company’s liquidity management practices, a clear payment timeframe has been established and applied consistently and equitably to all business partners. The standard payment term is set at 60 days, while the actual average payment period to business partners in 2025 was 39 days. This reflects the Company’s commitment to maintaining strong relationships with its business partners and supporting the financial stability of its supply chain.