Objective

This guideline aims to enhance transparency and fairness in the registration and operation processes of partner companies, contributing to the establishment of a fair-trading order. It serves the purpose of informing general matters related to the registration and operation of our partner companies.

Guideline Structure

Terminology

Refers to a supplier that supplies components assembled into finished products according to the drawings or specifications provided by our company.

Refers to a company that wishes to register with our company for initial transactions by developing or transferring new items (components).

Refers to the evaluation conducted for a newly registered company intending to engage in initial transactions and registration through the development or transfer of new items (components).

Workflow Procedures

The criteria and procedures for partner company registration evaluation are included in this guideline, and the guideline is consistently made available on our company’s website.

If there are changes to the criteria for partner company registration evaluation, this guideline will be revised, and the modified version will be posted on our company’s website within 7 days of the changes.

Upon the determination of partner company registration, the results will be individually notified in writing (including electronic documents) within 15 days from the registration date. For non-selected companies, written notification will be provided, specifying the reasons.

Company Survey Form (Management Information, Certification of Quality/Environmental Systems, and Production Capacity, SQ-MARK Certification)

Financial Statements (Certified by a certified agency for the preceding year just before the registration application date)

The evaluation team for the registration assessment of newly registered companies is composed of assessors from the department responsible for supplier evaluation, component development, and quality management functions.

Qualification Criteria for the Registration Assessment of Newly Registered Companies: Quality System Evaluation score of 75 points or higher

Reevaluation Criteria for New Registration Assessment

When a newly registered company achieves a score of 75 points or higher in the evaluation, a registration approval document should be prepared. The approval is obtained from the Head of the Business Unit responsible for partner company management.

The responsible for partner company management shall record the assigned grade in the Approved Company List according to the evaluation results. After obtaining approval from the Head of Operators, the information is distributed/notified to the relevant departments and partner companies.

The ERP system registration for newly registered companies is conducted upon the occurrence of transactions with our company, specifically in the procurement of components and parts, by receiving relevant documentation from the company.

Newly registered partner companies enter into contracts in accordance with the trade contract guidelines.

In the event of changes, such as a change in the company name, change in the representative, or relocation, registered partner companies must notify the relevant department responsible for component procurement.

Termination of Contract for Trading Partner Companies

The counterparty receives a trading suspension order from a financial institution or faces business cancellation, business suspension, or similar sanctions from regulatory authorities;

The counterparty experiences bankruptcy, compulsory execution by a third party, initiation of bankruptcy proceedings, or application for company liquidation proceedings, making it recognized that they cannot fulfill the contractual obligations due to significant business reasons;

If counterparty party recognizes that it is difficult to fulfill the terms of the master agreement or development contract due to the dissolution, transfer of business operations, or merger with another company by the counterparty, or due to a disaster or other reasons.

In the event that the counterparty violates a material provision of this contract or individual agreement, or if the receiving party unreasonably delays the fulfillment of matters necessary for the production of ordered parts without justifiable reasons, causing disruption to the supplier’s operations;

In the event that the supplier unreasonably refuses to manufacture ordered components or delays the commencement of production without valid reasons, making it difficult to deliver within the agreed-upon timeframe;

In the event where the supplier’s technical, production, and quality management capabilities are deemed insufficient, and there are substantial reasons to believe that they cannot fulfill the contractual obligations satisfactorily.