Corporate Governance

Integrity Management

SNI has established “Guidelines for the Adoption of Codes of Ethical Conduct” which clearly state that directors, supervisors, managers, and employees must uphold principles such as honesty, conflict of interest prevention, avoidance of personal gain, confidentiality responsibility, fair transactions, proper protection and use of company assets, compliance with laws, and encouragement to report any illegal or unethical behavior. This is to prevent unethical behavior and actions that may harm the interests of the company and shareholders.

SNI has also established the “ Ethical Corporate Management Best Practice Principles,” which explicitly prohibit bribery and extortion, the provision of illegal political contributions, improper charitable donations or sponsorships, and the offering or acceptance of any unreasonable gifts, hospitality, or other improper benefits. This is to prevent employees from sacrificing the company‘s interests for personal gain and to establish a corporate culture of integrity, sound development, and ethical business operations.

In addition to the “Guidelines for the Adoption of Codes of Ethical Conduct” and the “Ethical Corporate Management Best Practice Principles,” a “Code of Work Ethics” has been formulated. All new employees are required to sign it upon joining to ensure the company‘s anti-corruption spirit is upheld. There is also an “Insider Trading Prevention Procedure” in place to prevent improper disclosure of significant internal information that may affect stock prices, ensuring that all employees of the company adhere to the relevant regulations.

To ensure that employees fully understand the importance of integrity, training and advocacy sessions based on the company‘s Ethical Corporate Management Best Practice Principles and Guidelines for the Adoption of Codes of Ethical Conduct are conducted for board members, managers at all levels, and employees. This is to ensure that personnel at all levels understand the company's integrity provisions and principles and to prevent corruption incidents from occurring.

Internal Controls

To ensure the effective implementation of integrity in operations, SNI has established an effective accounting system and internal control system following the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and the "Regulations Governing Establishment of Internal Control Systems by Public Companies.“ Internal auditors in the Audit Office regularly review compliance with these systems.

The highest governance level at SNI is the Board of Directors, which has established an Audit Office responsible for auditing the company's management system and various operational processes. The Audit Office reports directly to the Board of Directors.

In 2022, there were no significant audit deficiencies, and no incidents related to dishonesty or corruption occurred.The declaration of the effectiveness of internal systems was approved by the Board of Directors on February 24, 2023.

Fair Trade

SNI deeply understands that compliance with competition laws is a crucial part of business activities. In 2022, no violations occurred. In the future, the company will continue to maintain its integrity by strictly adhering to fair trade regulations and laws in all aspects.

Whistleblowing and Complaint Mechanism

Since August 2017, a whistleblowing contact mailbox has been established on the company‘s website. On January 25, 2019, the Board of Directors passed the “Handling Procedures for Reporting Illegal, Unethical, or Non-Integrity Cases,” and established a whistleblower protection system to strictly ensure the confidentiality of the whistleblower’s identity and prevent retaliation.

In 2021, the “Complaint, Reporting, and Suggestion Management Regulations” were promulgated, consolidating the avenues for employees, suppliers, customers, and stakeholders to lodge complaints, reports, and suggestions. It specifies the internal and external channels for complaints, the responsible units, the complaint handling mechanism, confidentiality, and prevention of retaliation, to maintain business ethics and ensure the implementation of integrity in operations.

Risk Management

Because of the continuous occurrence of natural and man-made disasters, causing interruptions in business operations and tangible or intangible asset losses, which in turn affect industry supply chain supply and customer orders, SNI, to ensure continuous business operation, strengthen corporate governance, and ensure the steady operation and sustainable development of the company, serves as the basis for various risk management and execution. In terms of risk management, the “SNI Technology Co., Ltd. Risk Management Measures” was established and implemented in 2020 after being approved by the board of directors. Based on the respective unit‘s responsibilities, all units jointly participate in related risk control mechanisms to reduce losses or impacts due to risk impacts on the enterprise, and effectively grasp risk control when a crisis occurs.

Authorized Economic Operator (AEO)

SNI began promoting this initiative in May 2014 and was awarded the AEO Security Certification Quality Enterprise Certificate on January 27, 2016. In December 2021, SNI passed the external on-site verification conducted by Keelung Customs, receiving a permanent and valid AEO certificate.

SNI will continue to promote AEO management, maintain relevant operational controls of the company, comply with relevant regulations, and meet customer requirements for secure trade in the supply chain, ensuring the safety of trade and cooperative relationships upstream and downstream in the supply chain.

In 2021, Keelung Customs audited and confirmed SNI's compliance with the 3-year corrective action requirement and awarded SNI the permanent AEO certificate.