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With Integrity as one of its core corporate values, Unizyx holding company and its subsidiaries strongly observe this principle to abide legislations and business ethics. We believe that good corporate governance allows us to have a firm foundation for growth and to offer all stakeholders with the best interest. As a responsible corporate citizen, it is our obligation to serve the community and the people relying on us. We have an internal audit office and supervisors to ensure proper reporting and adequate internal controls. In addition, Compensation Committee was also established. Other measures to safeguard shareholders' interests include the Company's effective board of directors and the prompt disclosure of relevant information to shareholders.
 

In terms of financial operations, Unizyx has an auditing unit to ensure adequate reporting and internal controls. In addition to all measures towards safeguarding shareholders' interests, we disclose transparent and relevant information to stakeholders and investors in a timely manner. Unizyx reveals its financial status information such as annual reports and financial reports on the company Web site. Concerned parties are always assigned an official spokesperson to respond to queries and issues. For more Information about Unizyx's corporate governance and financial information, please visit the "Investor Relations" on Unizyx Global Website.

 

 

Unizyx includes the risk management in its business strategies and corporate culture, in order to manage the exposure of various potential risks and hazards  to operations and earnings. Through the top-down hierarchical organization, we establish systematic risk response policies and procedures in order to effectively identify, analyze and evaluate risk management mechanisms, control various risks, and establish corresponding mitigation policies to effectively control the enterprise's risk, and mitigate the effects posed by the risks to related stakeholders accordingly. 

The "Unizyx's risk management policy and procedure regulations" approved by the Board of Directors serve as the ultimate risk management policy of the Company. Meanwhile, we have set up a risk management policy group subordinated to the "Unizyx Sustainability Committee”, which establishes the corresponding policies and procedures in accordance with ISO31000 Risk Management Guidelines, and is responsible for implementing the risk management policies authorized by the Board of Directors.

 

Risk Management Policy

Various risk types of Unizyx's risk management policy are defined based on the our overall business policy. We hereby establish a risk management mechanism dedicated to early identification, precise measurement, effective supervision, and strict control. We uses its best efforts to prevent possible losses and continues adjusting and improving the mechanism in response to the changes in internal and external environments, in order to increase shareholders' interests and our value.

 

Risk Management Organization Scheme

 

Board of Directors
Serves as the ultimate governance and decision-making body for the risk management organization and authorizes the overall risk management strategies based on the Company's business strategies and business environment.

Audit Committee
Subordinated to the Board of Directors is responsible for reviewing and approving the Company's internal control system, complying with laws, and managing the Company's existing or potential risks. 

Risk Management Group
Set up subordinated to the "Sustainability Committee”. It serves as the unit responsible for risk management. Convene the risk management group meeting at least once a year to discuss the Company's implementation of risk management and report the risk evaluation and risk management results for the previous year to the Board of Directors.

Responsible Units of Group Members
Establish the group policies on the related functions, such as strategy, finance, legal affairs, information, human resources, environmental safety, R&D, manufacturing, and sales, in order to integrate the Company's key strategic directions. 

Audit Office
Audits subsidiaries' finance and business details, and the adequacy of the internal control system's design and implementation and reports the results to the Board of Directors periodically, and follows up on the corrective actions.

 

Risk Management Mechanism

 

Risk Management Categories

The risk categories include corporate governance, economic, environmental, and societal dimensions: covering operations, finance, information security, market, environment, climate changes, and other business-related factors.

 

Risk Assessment and Strategies

Subsidiaries' departments conduct detailed risk assessment through their professional services, and also prepare management strategies and response programs to mitigate, transfer, or evade risks, for the purpose of reducing the company's operational risk effectively.

Dimension

Risk type

Risk impact

Mitigation policy

Corporate governance

Operational risk

Achievement of business goals

  • Management reports strategic issues to directors periodically in order to mitigate the operational risk through directors’ engagement, suggestions, and supervision.
  • Manage the achievement of annual polices and goals via the management performance meeting.
  • Strengthen the risk management mechanism, increase the diversified interactive opportunities and channels for stakeholders, and improve the quality of communications and disclosure. 
  • Set forth the “business plan management procedure” to ensure product quality and market competitiveness, customers’ satisfaction, and financial performance results. Revise goals as needed for sustainability.

Financial risk

Exchange rate fluctuations

In consideration of high proportions of export sales, we monitor market information and exchange rate trends from time to time and evaluates the risk of its foreign exchange position, in order to mitigate foreign exchange risks. Meanwhile, We hedge against risks in a timely manner, in hopes of mitigating any adverse effects posed to operations.

Information Security Risk

  • Abnormality in the data system
  • Information security attacks
  • Disclosure of confidential information
  • Establish the “Information Security Committee” inter-departmental unit
  • Improve the employees’awareness and expertise towards information security
  • Enhance information security management
  • Assess our assets and verify threats and weaknesses to enable the management to have fuller knowledge of the risks and mitigate the risks to an acceptable extent.
  • Acquire ISO 27001:2013 certification

Economic dimension

Supply chain risk

  • Fluctuation in prices of raw materials and supplies 
  • Shortages of materials
  • Establish sustainable supply chain partnerships
  • Establish a risk management mechanism for prices of raw materials
  • Evaluate carefully and use the best methods to develop new sources of materials to prevent the sources from being monopolized by a few suppliers
  • Establish safe inventories
  • Verify the market conditions through collection of business intelligence or market surveys in order to respond to changes as early as possible

Technology risk

  • Easy access to low-price product technology affects the market price.
  • Increasing demand in the technology integration market
  • Control the market trends, verify customers’ needs, and layout the development of new products and core technologies as early as possible
  • Launch the R&D of related technologies, and increase R&D strength and investment
  • Set forth the “Regulations Governing Project Risk Management” and implement the risk management plan when planning new products in order to ensure the timely management of risk when developing any new products.

Business risk

Changes in the market affecting operations

  • Verify market conditions through the collection of business intelligence or market surveys in order to respond to changes as early as possible.
  • In response to the changes in the US-Sino Trade War, MitraStar has enhanced our partnerships with our clients and supply chains to ensure optimal capacity.

Environmental dimension

Disaster risk

Given the COVID-19 epidemic, customers' demand is uncertain. Human resources, raw materials and supplies are in short supply.

  • Allocation of optimal capacity
  • Enhancement of our partnerships with our clients and supply chains.

Climate change risk

  • Impact to the business posed by climate changes
  • Reduction in GHG emissions
  • Laws & regulations and other requirements
  • Identify the risks and opportunities derived from climate changes, research and draft a risk response policy, evaluate the operational impact and financial effects, and disclose information about climate change concretely.
  • Manage carbon emissions, and boost GHG (Green House Gas) inspection and energy-conservation policies

Social dimension

Human resource risk

  • Difficulty in soliciting talent
  • Loss of key talent
  • Effective HR management mechanism and implementation of performance evaluation procedures
  • Improvement of talent recruitment and training channels
  • The HR Management Procedure and Regulations satisfy the relevant laws and regulations.