▋Supply Chain Management

To implement effective “supply chain management and strengthen a resilient supply chain, ”  the Company has adopted the following management policies:

• Suppliers are required to comply with the Code of Conduct under the “Vendor Management Procedures. ”
• Suppliers must comply with the “Contractor Environmental Safety and Health Management Rules” and the  “Contractor Environmental Safety and Health Affidavit. ” The Company also provides support by assisting suppliers in conducting environmental, safety, and health training.
• Monthly consultation meetings are convened with the top five underperforming suppliers to help them optimize their processes and improve product quality.

▋Supply Chain Environmental Policy

• Implement the “Annual Vendor Evaluation” and integrate the results into procurement decision-making.
• Conduct supplier risk assessments, with consultations in 2024 primarily focusing on lathe suppliers.
• Continue organizational greenhouse gas (GHG) inventories and product carbon footprint assessments.
• Optimize production processes to reduce electricity consumption and minimize waste.
• Strengthen safety awareness in the workplace.
• Continue to advance corporate governance and build a resilient supply chain.

▋ Supply Chain Environmental Management Performance

Shieh Yih Machinery conducts annual supplier evaluations to ensure supply chain stability and assess the overall performance of business partners. The evaluation criteria cover multiple indicators, including delivery reliability, compliance with corporate policies, quality management systems, equipment and technical capabilities, and delivery quality. These serve as important references for continued cooperation and supplier improvement.

In 2024, a total of 29 suppliers were evaluated, with the results as follows:

• 6 suppliers were rated as “Excellent.”
• 23 suppliers were rated as “Grade A, B, or C.”

Through the annual evaluation mechanism, the Company effectively monitors the overall quality and risk conditions of the supply chain. This serves as a critical foundation for supplier management and consultation, thereby enhancing operational efficiency and strengthening sustainable competitiveness.

▋Customer Relationship Management

Shieh Yih Machinery has long focused on stringent product quality control. With extensive experience in customized design and manufacturing, combined with rigorous order management procedures and comprehensive product testing, the Company has earned strong customer trust. Building on this foundation, Shieh Yih will continue to prioritize customer needs, strengthen long-term and stable relationships through outstanding service and effective communication, and further enhance customer satisfaction and loyalty. These efforts aim to reinforce the Company’s competitiveness and exceed market expectations.

The Company regards customer health and safety in product use as a top priority and has embedded this core concept into every stage of product design, R&D, production, supply chain management, and customer service. Accordingly, we strictly adhere to both domestic and international safety standards to ensure that all products meet the highest safety requirements. At the same time, we support customers in safe and accurate product operation through clear labeling, user instructions, and responsive customer service. The following items were completed in 2024:

1. To safeguard users’ health and safety, the Company provided options for installing light curtains and protective nets during product design and manufacturing to reduce operational risks.
2. Fully implemented labeling requirements on every stamping press product, including nameplates and service contact information.
3. In 2024, there were no incidents of non-compliance with product and service health and safety regulations.
4. In 2024, there were no legal incidents arising from non-compliance with product and service information or labeling requirements.
5. In 2024, there were no cases of non-compliance with marketing and communication regulations.

The Company has consistently demonstrated a strong sense of responsibility toward sustainable consumption and production, actively promoting the green economy to realize sustainable models, while joining hands with stakeholders to move toward a net-zero future. Shieh Yih focuses on two key aspects: enhancing green manufacturing capabilities and deepening partnerships, to advance the following strategies.

▋Promoting Green Manufacturing Capabilities

To strengthen the Company’s commitment to environmental sustainability, we continue to advance energy conservation, carbon reduction, and the optimal use of resources across manufacturing processes, product design, energy management, and other areas. Specific practices include:

1. Establishment of an Energy Consumption Monitoring System: Through digital management, assist customers in tracking equipment energy usage, implementing optimal adjustments, and thereby reducing overall carbon emissions and energy consumption.
2. Promotion of Green Product Applications: Actively develop and support high-efficiency equipment for the environmental protection industry, such as bipolar plate forming machines for new energy vehicles (EVs), to assist customers in their green transition.
3. Development of a Green Supply Chain: Collaborate with suppliers to promote carbon reduction actions and comprehensively lower the carbon footprint through raw material selection, packaging optimization, and transportation methods.

▋Deepening Diverse Partnerships

Shieh Yih regards customers and suppliers as key sustainability partners, committed to growing together with the value chain while enhancing overall carbon reduction and innovation capabilities to jointly realize a sustainable future. The main strategies are as follows:

1. Promote Green Transition and Value Chain Integration: Collaborate with upstream and downstream partners to promote servo presses and other energy-saving equipment, introduce eco-friendly materials and low-carbon technologies, and establish joint carbon reduction targets.
2. Enhance Carbon Footprint Transparency: Develop a carbon emissions data platform to help partners monitor emissions and accelerate carbon reduction efforts at different stages.
3. Strengthen Industry–Academia–Research Collaboration: Partner with academic institutions and R&D organizations to jointly develop technologies for new energy, lightweight, and composite materials, thereby increasing product added value.
4. Enhance Partners’ Capabilities: Support supply chain partners in improving practical capabilities in environmental management and green manufacturing through training and exchange activities, fostering a resilient and sustainable value chain.