In accordance with its "Risk Opportunity Assessment and Emergency Response Operating Procedures," Darfon regularly discusses and assesses macroeconomic changes annually, identifies priority areas of concern, and conducts risk assessments and crisis drills to enhance crisis awareness, strengthen response capabilities, and enhance preventative measures.
In supplier risk management, critical materials, components, and key manufacturers are defined based on the specific characteristics of each business unit. Supplier risk levels are assessed based on three key factors: process flow, management procedures, and monitoring and control. Different levels of management mechanisms are implemented for suppliers with varying risk levels to ensure consistent supply quality. By 2024, all major suppliers were classified as low-risk, with no significant impact on production.
Critical Raw Material Risk Management
To mitigate the impact of supply chain disruptions and cost fluctuations on operations, Darfon has established a critical raw material risk management mechanism for key raw materials used in finished products, such as plastics, steel components, and battery cells. Because critical materials may be subject to physical limitations on availability and access, price fluctuations, and regulatory changes, these factors pose potential risks to the company's operational stability. Darfon will continue to focus on raw material acquisition and supply security, mitigating risk through diversified supplier strategies, material reserves, development of alternative materials, and sourcing from alternative sources. Darfon is also actively investing in the research and development and application of recycling and reuse technologies for critical materials to enhance resource resilience and sustainable operations.
Local Procurement Ratio
Darfon supports the development of local supply chains, emphasizing local sourcing to shorten transportation distances, reduce carbon footprint, and promote local economic development. By 2024, procurement spending from local suppliers in Taiwan will account for 48% of total spending, while procurement spending from non-local suppliers (such as those in China and Japan) will account for 52%.
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