Adhering to the goal of "a happy enterprise, a friendly workplace, and the pursuit of zero work-related injuries", the "Environmental, Health and Safety Promotion Center" (formerly the "Environmental, Health and Safety Committee") establishes and promotes occupational safety and health in accordance with the provisions of the Occupational Safety and Health Act (Mainland China: Production Safety Law) The safety and health management system provides safe and healthy working conditions, eliminates and reduces occupational safety and health risks, and promotes occupational safety for workers. The promotion center regularly reviews the implementation status of occupational safety and health programs in each plant, and handles safety accidents, disaster analysis and prevention.

The Occupational Safety and Health management system (ISO 45001) is applicable to Taiwan plants (Hsinchuang, Yangmei, Taichung, Yenshui), Mainland China plants (Shanghai Walsin, Dongguan Walsin, Jiangyin Walsin, Jiangyin Alloy, Changshu Walsin, Yantai Walsin), Indonesia Walsin Nickel and for all CAS workers (employees, contractors and visitors). The overall site coverage of internal and external audits was 89.63% for employees and 97.59% for non-employees (contractors) (Taipei Headquarters, Nanjing Walsin (Real Estate), and Walsin Precision Malaysia have not yet passed verifications). Occupational safety and health management, worker participation, consultation and communication, prevention and mitigation of occupational safety and health impacts directly related to the business, etc. at each production operation base shall be handled in accordance with the provisions of the Occupational Safety and Health Management System. Walsin continues to apply the PDCA dynamically review management methods to improve and prevent recurrence, internal audit exercises, annual occupational safety and health performance indicator setting and tracking and other management mechanisms to improve the work safety of colleagues.

Each plant has an Occupational Safety and Health CommitteeNote, with a certain proportion of labor representatives assigned by the enterprise's labor union to participate. Regular meetings are held (quarterly/monthly) to discuss occupational safety and health (safety production) related regulations, major safety and health issues and safety and health management performance, and send meeting minutes and occupational safety promotion messages to company colleagues.

Based on the ISO 45001 Occupational Safety Standard, occupational safety and health are implemented through the following mechanisms:

Regular meetings are held on-site, and when hazards and dangerous conditions are identified, employees can immediately convey their opinions and compile effective proposals for improvement projects. Appropriate incentives will be given accordingly.

Representatives from various departments convey their opinions at the meeting, and labor and management jointly communicate on occupational safety policies, occupational accident case studies, and occupational safety and health issues.

Communicate with third party companies (contractors) about workplace hazards, opinions, and company policies; And regularly communicate and hold discussions with contractors.

In the beginning of every month, a review is held on industrial safety incidents involving disability for more than three days in the previous month, and the Environmental Safety department conducts "immediate accident investigations" and discusses them in the council meeting to ensure the effectiveness of improvements and the attribution of responsibilities (operations/supervision management/planning errors). The chairman of the council is jointly served by the President of the business group and the Environmental Safety Department, and the council decides on the handling measures with reference to the opinions of the council members.

The dedicated environmental safety unit shall convene labor representatives and relevant personnel as necessary to discuss and deal with illegal infringement, abnormal workload (overwork), and human hazards. (No cases occurred in 2023)

When unit managers and employees find immediate danger in the workplace, they shall, in accordance with the notification procedure, ask the person in charge of the site to stop the operation immediately and make the workers retreat to a safe place.

In order to implement source management and control the risks of operation and equipment safety, we have added the hazard identification and risk assessment information of repetitive, high-hazard and high-risk specific operations (forklifts, cranes, boilers, etc.) to the risk management system for the operators to effectively identify hazards and risks. In 2023, a hazard identification and risk assessment strengthening project was launched. Plants in Taiwan and Mainland China will re-examine personnel operation safety, equipment safety and environmental safety projects in the original SJP risk management system. A total of 11 plants (sites), 147 units and 1,816 operation types were inspected, and 381 hazard factors were identified; among them, physical risks accounted for 84.9%, chemical risks accounted for 11.2%, human factors and other risks accounted for 1.9%, and biological hazards accounted for 0.1%. In 2024, we will focus on the disaster cases from 2023 (84 worker occupational accidents (including minor injuries, but excluding CAS) and 205 near-miss incidents (the near miss frequency rate was 238.98%, excluding CAS), as well as physical hazards and equipment safety. Through the mobile management of the contractor's mobile APP inspection system, KYT activities can be foreseen, and the chance of disaster, severity, frequency of operation and risk level can be adjusted to shape the safety awareness of all employees and achieve the goal of zero work injuries.

In 2023, an equipment safety project was launched in response to the major disaster and SJP risk project "Mechanical Equipment-Physical Injury" over the years, and re-examine the hazards of illegal operations of personnel in 10 factories (sites), the hazards of inadequate equipment hardware protection, and coordination issues between users and equipment; A total of 147 units and 1,049 pieces of equipment were inspected (special equipment accounted for 15%). The Safety Checklist Analysis (SCL) evaluation was conducted through the critical equipment inventory, and the risk analysis of 78.36% of the key equipment was completed based on the equipment and facility risk classification control list. In order to avoid underestimating the risks of high disaster-causing equipment, a special equipment (hazardous mechanical equipment) license management system and equipment safety inspection projects will be developed in 2024. From the evaluation of existing control measures (engineering and technical measures, management measures, training and education, personal protection, and emergency response), employees are able to understand the safety design of existing machines, evaluate the safety status of machines, identify the potential risks of machines, and develop action plans to reduce the risks (intrinsic safety, engineering control, and management control), in order to maintain operational safety.

We conduct regular inspections of the chemicals used in the entire plant and establish a chemical list (for SDS control and GHS diagram maintenance) annually. We also conduct inspections and replacement of corresponding abnormal fire extinguishing equipment and hold relevant emergency response training on a regular basis to prevent disasters.

In addition to implementing training in accordance with laws and regulations, necessary training is also conducted according to department operations, on-site tasks, and the needs of the annual safety training program of the business unit. The Company has also established a comprehensive environmental safety license system to keep track of the movement and demand for licenses at each site in addition to regular training plans for safety and environmental responsibilities, fire escape drills, special operations personnel, and emergency response drills.

Our company's personnel/medical staff, safety and health, and various departments work together to protect and promote the health of workers, and to regulate the implementation of health examinations for employees in each factory both at home and abroad, so as to independently manage the employees and workers and prevent them from engaging in unsuitable operations. There have been no deaths from occupational diseases or cases of occupational diseases confirmed by a specialist in occupational medicine in the past 8 years.

From 2021 to 2023, occupational disasters were reduced through measures such as project inspections, systematic disaster classification, risk assessment and Safe Job Procedures (SJP). Although the number of disasters increased in 2023, the overall disaster severity decreased. In 2024, we will continue to improve and reduce occupational injuries through the ISO 45001 standardized contractor management system and the newly developed cell phone APP inspection feedback mechanism.

In 2023, there were a total of 84 employee occupational injuries (including minor injuries, but excluding 19 CAS occupational injuries and 31 minor injuries), and the proportion of recordable disasters was 0.55% (the number of occupational injuries as a proportion of the total number of employees). The overall frequency of disasters this year has dropped, but the severity was higher than last year. After analysis, the highest number of cases (91.18%) still occurred among entry-level technical operators, and the main type of disaster was clamp and rolling injury (26.32%), and the related risks and deficiencies have been improved in time through hardware protection and management measures. We plan to improve the safety of LECD equipment in 2024 to reduce equipment "clamping" hazards, improve SJP operation safety operating procedures to reduce "collision" hazards, and optimize the 5S environment to reduce the risk of "falling" in the aisles. Through "Kiken Yochi Training (KYT)" method, we hope to enhance the hazard awareness of "entry-level employees" and reduce the occurrence of injuries. In 2023, there were no fires, chemical leaks, or fatal work-related injuries in the company.

In 2023, there were five violations of major^note occupational health and safety laws and regulations at the plants in Taiwan, and the fines for the violations was NT$600,000, respectively. (No violations in Mainland China and Southeast Asia)

Walsin Lihwa shall continue reviewing every accident and penalty to focus on high-risk hazardous operations, highly frequent false alarms, and potential threats. Relevant projects and leveraging information technologies are also expected to help step by step strengthen employees' safety awareness, stay on top of the status of machine and equipment, and effectively control raw material and chemicals by compliance cloud implementation to continue work environment improvement.

All Walsin factories in Taiwan and Mainland China implement the "Walsin Lihwa Contractor Management Principles". All contractors must sign the "Environmental Safety and Health Commitment Agreement" and abide by the "Contracting Instructions" (100% coverage), and hold regular start-up meetings with the contractors. During the agreement meeting, the contractor must receive relevant training before being qualified to enter the plant. The contractors' entry information is managed through the "Contract Management System". In 2023, contractors entered the plant 27,324 times, with a total working time of 1,381,069 hours. Each plant continues to implement the "Walsin Lihwa Contractor Safety and Health Management Blue Book", "Standardization of Contractor Safety and Health Management Regulations", "Contractor Insurance Regulations" and access control, etc. A total of 724 notification of deficiencies and improvement orders and 98 violation tickets were issued. Two work-related injuries occurred in Yantai in 2023. The relevant deficiencies have been immediately improved, and the advocacy of key issues has been completed.

In 2023, no contractor had a fire emergency in the working environment of the Walsin plants.

Contractor Safety and Health Management

Each year, Walsin designs a feasible employee health promotion plan, conducts health inspections and analyzes the results based on risk management and the plant's hazardous operations and special operation groups (noise, free radiation, dust, high-temperature, lead, manganese, nickel, and n-hexane operations), and establishes a health protection plan for the hazardous operations to ensure a good workplace environment and to prevent the emergence of occupational illnesses.

Through health promotion lectures and activities, we improved employees' health awareness and guided employees to change into healthy behaviors and habits and obtained the correct knowledge on hygiene. A total of 115 health education lectures were held in 2023, with 4,142 participants. Another 8 pregnant female employees received maternal labor health protection.

Meanwhile, each plant actively establishes a healthy work environment and implements various workplace health promotion initiatives. This effort has been widely recognized, including awards such as the "Excellent Healthy Workplace - Vibrant Energy Award" and the "Health Workplace Certification Health Promotion Logo" and"Excellent Certification for Breastfeeding Rooms" at the Taipei headquarters, as well as the "Safety Zone Certification" at the Hsinchuang plant.