Redwood

Implementation of Sustainable Development

The Company is committed to maintain good relations and integration with investors and we have put emphasis on every shareholders, potential investors, clients and employees and to fulfill the corporate social responsibility. So, the customers believe us because of the integrity and friendly attitude; investors willing to invests in a long term manner because of the Company’s clear core values; employees generate more centripetal force because of the trust and recognition towards the Company; these favorable factors lead Company to a position with greater advantages, to create greater values for our shareholders, and to initiate win-win situation for stakeholders.

Meantime, the Company also has deep understanding that talents are one of the important factors that support the Company’s growth. Thus, we also devote to create a safe, comfortable and fair working environment which enables them to work wholeheartedly and perform with high efficiency.

We also uphold the concepts of equal opportunity for everyone regardless of race, skin colour, gender, religion, marital status, nationality and etc., given equal opportunity to impose appreciate training according to their ability and duties.

The Company imposes the following as contribution to society:

1. Operations and Envrionmental Protection

The Company’s clients are the world’s top luxury brands, they request not only high quality product and services and the Company’s strict abidance to social and environmental responsibilities. As an appointer supplier of these world’s top luxury brands, we strike to comply with their requirements as mission, to satisfy them by continuously working with downstream supply chain, from the materials for production, staffs and their working environments, and all other aspects.
The company also actively promotes the Green Environment to beautify the working and living environment. Meantime, Company will also give impetus to the use of environmentally friendly material in response to the environmental protection requirements of clients, consumers and society.

2. Public Charity Events and Employees Participation

The Company will be more actively involved in the social activities and to encourage every colleague to take part with us in future. In the events that emergency occurred, encouraging every colleague to join disaster relief with the spirit of endures misfortune together in order to contribute to our community.

The Employee's initiative is the key success of corporate social activities. The company will stimulate the employees to enthusiastically take part in social welfare activities or charity events, and to invite its upstream and downstream supply chain to work together in the future to enhance corporate social responsibility.

3. Employee welfare and occupational safety and health

Redwood welfare and occupational safety and health

The implementation of promotion of sustainable development and the difference from the company's sustainable development code of practice and the reasons:

Item	State of the Company's Implementation			Any Departure from the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" and Reasons
Item	Yes	No	Summary
I. Has the company established a governance structure to promote sustainable development, and set up a dedicated (part-time) unit to promote sustainable development, which is authorized by the board of directors to handle the senior management, and the board of directors supervises the situation?	V		In line with the implementation of the corporate governance 3.0 sustainable development blueprint, the company has passed the "Sustainable Development Code of Practice" through the resolution of the board of directors, and has set up a corporate governance director to coordinate related affairs and administrative departments to implement relevant business plans. After the administration department implements the business plan, it will report to the board of directors from time to time, and accept the supervision and review of the board of directors.	No material departure.
II. Does the Company conduct risk assessments on enviornmental, social and corporate governance issues related to the Company's operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?	V		The Company has formulated the "Sustainable Development Best Practice Principles." With its key corporate philosophy of integrity and hoesty, it achieves the goal of sustainability throught fulfilling the CSR and driving the progress of economy, environment and society. While pursuing the sustainable development and profitability, the Company values environmental, social, and corporate governance factors and incorporates them into its management and operation. The Administration Department is responsible for the overall planning on the implementation of corporate governance, employee rights, environmental preotection, and social engagement by every relevant department.	No material departure.
III. Environmental Issues
(I) Does the Company establish proper environment management systems based on the characteristics of its industries?	V		(I) The Company has obtained the ISO 14001 (environmental management system) and BizSAFE (occupational safety and health) certification.	(I) No material departure.
(II) Does the Company endeavor to utilize all resources more efficiently and use renewable materials which have a low impact on the environment?	V		(II) The factories continue to promote eco-friendly materials and the waste (wood and metal) recycling program.	(II) No material departure.
(III) Does the Company assess the present and future potential risks and opportunities of climate change for the entity, and take measures to respond to climate related issues?	V		(III) The Company keeps track and assesses the rick and threats in terms of the present and future supply of raw materials. Subsitutes and new technology are adopted as countermeasures.	(III)No material departure.
(IV) Does the Company calculate its greenhouse gas (GHG) emissions, water consumption and total waste weight in the past two year, and formulate policies for energy conservation, reductios of carbon, GHG and water consumption, or other waste management?	V		(IV) Energy conservation and the reduction of carbon and GHG are implemented in the daily operations of the Company, its subsidiaries and factories. In addition, large vacuum plating facilities are installed to prevent pollution and damage to the environment and water resources.	(IV)No material departure.
IV. Social Issues
(I) Does the Company formulate appropriate management policies and procedures according to related laws and regulations and the International Bill of Human Rights?	V		(I) The Company has set the employee rights in the employee handbook according to the laws and regulations of countries where subsidiaries operate and the International Bill of Human rights.	(I) No material departure.
(II) Does the Company formulate and execute reasonable employee welfare measures (including compensation, leaves and other benefits), and have the operating performance or results properly reflected in employee compensation?	V		(II) The Company protects employees' legal rights pursuant to the law and regulations of countries where the subsidiaries operate and the International Bill of Human rights. It also stipulates relevant employee rights in its employee handbook and executes accordingly.	(II) No material departure.
(III) Does the Company provide safe and healthful work environments and organize training on safety and health for the employees on a regular basis?	V		(III )The Company ensures that the work environment in factories is safe in accordance with the occupational safety laws and regulations of countries where subsidiaries operate and has obtained the BizSAFE (occupational safety and health).	(III)No material departure.
(IV) Does the Company establish an effective competency development career training program for employees?	V		(IV) In addition to orientation training, the Company and its subsidiaries organize on-the-job training based on the needs of departments and positions and allow employees to participate in external vocational training to improve their professional skills.	(IV)No meterial departure.
(V) Doest the Company comply with related regulations and international standards in terms of customer health and safety, customer privacy, merketing and labeling of products and services, and formulate relevant consumer protection policies and complaint procedures?	V		(V) As the Company's customers are all internationally renowned luxury brands, the marketing and labeling of products and services fully comply with related laws and regulations. Moreover, the Company's internal control system contains procedures for handling customer complaints and the in-charge unit to protect the rights of products and customers.	(V) No material departure.
(VI) Doest the Company formulate supplier management policies that require suppliers to follow relevant regulations on issues such as environment protection, occupational safety and health, or labor rights, and the implementation results?	V		(VI) The Company has established the "Policy for Supplier Management" which demands suppliers to fulfill their CSRs on the premises of regulatory compliance and protection of suppliers' rights. The Company may terminate or revoke contacts if there is significant impact on the environment and society.	(VI) No material daprture.
V. Does the Company refer to the internationally accepted report preparation standards or guidelines for its preparation of CSR or other reports which disclose the Company's non-financial information? Do the aforementioned reports obtain a third-party assurance or verification statement?		V	In addition to disclosing information on honest management and sustainable development in the public prospectus, the company also prepares a sustainability report and uploads it to the public information observatory; however, this report has not yet obtained the confidence or assurance of a third-party verification unit.	No material departure.
VI. If the Company has its own sustainable development best practice principles formulated according to the "Sustainable Development Best Practice Principles for TWSE/GTSM Listed Companies," please explain the difference betwwn its operation and the established code: The company formulated the " Code of Practice for Sustainable Development" to implement corporate governance, develop a sustainable environment, maintain socail welfare, and strengthen sustainable information disclosure. There is no major difference betwee the current operation of relevant matters and this code.
VII. Other important information that is helpful to understand the implementation of sustainable development: Environment friendly - The Singapore factory, which will operate in 2021, has obtained the local green building certification; the Singapore factory and the Malaysian factory have also passed the ISO14001 environmental system certification. Social Responsibility - Pass the social compliance audit conducted by the external audit agency designated by the customer; and the company will inform all group employees and suppliers of the required code of conduct. Corporate Governance - Continue to strengthen external supervision and gender balance of directors; the fifth session of directors of the company consists of two general directors and the three external independent directors, including two female directors; the proportion of independent directors and female directors is 60% repectiviely, 40%,

1. Operations and Envrionmental Protection

2. Public Charity Events and Employees Participation

3. Employee welfare and occupational safety and health

I. Has the company established a governance structure to promote sustainable development, and set up a dedicated (part-time) unit to promote sustainable development, which is authorized by the board of directors to handle the senior management, and the board of directors supervises the situation?

II. Does the Company conduct risk assessments on enviornmental, social and corporate governance issues related to the Company's operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?

III. Environmental Issues

IV. Social Issues

V. Does the Company refer to the internationally accepted report preparation standards or guidelines for its preparation of CSR or other reports which disclose the Company's non-financial information? Do the aforementioned reports obtain a third-party assurance or verification statement?

VI. If the Company has its own sustainable development best practice principles formulated according to the "Sustainable Development Best Practice Principles for TWSE/GTSM Listed Companies," please explain the difference betwwn its operation and the established code:

VII. Other important information that is helpful to understand the implementation of sustainable development: