AcBel Polytech Inc. 康舒科技

Sustainable Governance

AcBel Company Profile

Company Overview

AcBel is a member of the Kinpo & Compal Group and was established in Tamsui District in 1981, New Taipei City, Taiwan. It is primarily engaged in the research, development, manufacturing, and sales of power supplies. It is recognized as one of the Top 10 leading manufacturers of switch-mode power supplies globally. In response to the growing concern over global climate change and the challenge of achieving net-zero carbon emissions, AcBel has been actively addressing the issue. Besides continuously improving the energy efficiency of its power products and incorporating the use of renewable materials, AcBel has also expanded its sales offerings in the field of power supplies. Additionally, AcBel has ventured into green energy-related sectors such as electric vehicles, charging stations, and solar power. By doing so, AcBel is contributing to the acceleration of global efforts to achieve the goal of net-zero emissions.

AcBel takes "demonstrating close customer proximity and providing timely services" as the core of its global expansion, and has set up a global R&D center in Taiwan. To stay abreast of market demands, AcBel has also established dedicated research and development teams in China and the USA which allow the company to provide products that meet customer needs. AcBel has manufacturing facilities located in Taiwan, China, and the Philippines in Asia. The company also has sales service centers in the USA, Europe, Taiwan, China, and other Asian regions including Japan. In response to the global climate change and the low-carbon transition trends, AcBel will continue to develop and expand its global presence in line with the overall industry chain and the carbon reduction needs of customers.

Contact Information for AcBel's
Manufacturing Plants

  • Taiwan / Tamsui Plant

    AcBel Polytech Inc.

    No. 18, Sec. 2, Zhongyang S. Rd., Beitou Dist., Taipei City 112, Taiwan (Qiyan Office)
    No. 159, Sec.3, Danjin Road, Tamsui District, New Taipei City, 25144, Taiwan (Factory)
    Tel: 886-2-2621-7672
    Fax: 886-2-2623-4156
    Email: headquarter@acbel.com

  • China / Dongguan Plant

    AcBel Electronic (Dong Guan) Co., Ltd.

    No.17-28, (Hong Yeh Rd.), Hong Yeh Industrial District, Tang Xia Town, Dong Guan City, Guang Dong Province, 523710, China
    Tel: 86-769-8791-3815
    Fax: 86-769-8772-8464

  • China / Wuhan Plant

    AcBel Electronic (Wuhan) Co., Ltd.

    No.1, DuTai North Road Economic Development Zone, Xiantao City, Hubei Province, 433000, China
    Tel: 86-728-3900-888
    Fax: 86-728-3257-852

  • Philippines / Philippines Plant

    AcBel Polytech (Philippines) Inc.

    No.2, Tagaytay Ridge Drive, Carmelray Industrial Park II, Km 54 National Highway, Calamba City, Laguna, Philippines, 4027
    Tel: 6349-502-7253
    Fax: 6349-502-7253 Ext. 3425

Chairman Statement

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In recent years, with changes in the international landscape and adjustments to supply chains due to the COVID-19 pandemic and geopolitical shifts, global businesses are facing unprecedented challenges and urgency. In addition, with the convening of the 27th United Nations Climate Change Conference (COP 27) in 2022, the issue of net-zero transition has received widespread attention and discussion. This has prompted businesses to contemplate how to address the risks posed by climate change without compromising the resilience of their sustainable operations. Therefore, as AcBel pursues operational growth, it also places equal emphasis on the implementation of ESG (Environmental, Social, and Governance) practices. This commitment is not only to benefit employees, partners, customers, and investors but also to make a greater contribution towards achieving the global net-zero emissions target by 2050.

For a long time, AcBel has received high recognition from various sectors for its performance in ESG areas. In recent years, AcBel has achieved several notable accomplishments, including:

  • AcBel achieved a ranking within the TOP 6~20% in the 9th Corporate Governance Evaluation in 2022.
  • In 2022, AcBel received a B score (Management level) in the CDP Climate Change Questionnaire. Additionally, the company achieved an A- score (Leadership level) in both the Water Security Questionnaire and the Supply Chain Engagement Rating Report conducted by CDP.
  • In 2022, AcBel enormously reduced its greenhouse gas emissions (location-based) by 23.35% compared to its record in the previous year of 2021.
  • In 2022, AcBel achieved a waste reduction of 1,791.98 metric tons, a 38.46% less in waste intensity, representing a significant decrease compared to the previous year of 2021.
  • In 2023, AcBel successfully passed the Science-Based Targets validation review by Science-Based Targets initiative (SBTi).
  • In 2023, the Task Force on Climate-related Financial Disclosures (TCFD) report of AcBel received the highest level of third-party performance assessment, being recognized as a "Pioneer."

While adhering to the highest operational principles of corporate sustainability, AcBel is directing its efforts towards three main areas of development, Advancing Renewable Energy Products, Smart Green Energy Services, and Electric Mobility Solutions. By aligning its business strategy with these three pillars of development, AcBel demonstrates its dedication to contributing to a greener and more sustainable future, while upholding its core principle of corporate sustainability.

 

Talent Strategy and Digital Transformation; Continuously Adjusting Corporate Structure

AcBel is committed to continuously investing in its human capital by undertaking organizational restructuring and reshaping its cultural foundation. These efforts are aimed at fostering a sense of unity and belonging within the company, creating a secure and fulfilling workplace for its employees. By nurturing a positive and inclusive culture, AcBel aims to enhance employee engagement and productivity. Simultaneously, the company is embracing digital transformation to improve overall operational efficiency. By integrating digital technologies into its processes and systems, AcBel seeks to optimize resource utilization, enhance decision-making, and deliver better customer experiences. In pursuit of its business objectives, AcBel remains dedicated to maintaining a sustainable balance between profitability and revenue generation while also considering the well-being of society, the environment, and other stakeholders.

 

Collaboration with Value Chain Partners; Offer of Green Transformation Products and Services

Cooperating with customers and partnering with suppliers, AcBel is undertaking an energy transition through its 3 Green Sustainability Action Plans— Green Production for energy-efficient and sustainable manufacturing, Green Energy for renewable and sustainable power supply, and Green Motor for sustainable transportation solutions. By leveraging technological research and development and engaging in cross-domain collaborations, AcBel is actively innovating to develop new products and services. These initiatives aim to provide high-value and diverse sustainable energy solutions, fostering a partnership that collectively creates a sustainable and low-carbon value chain.

 

Alignment with International Climate Trends; Moving towards Net-Zero Transition

AcBel is committed to implementing climate change risk management measures to reduce operational risks and ensure the continuity of its business. All major production and operational facilities worldwide have completed ISO 14064 greenhouse gas inventory and ISO 14046 water footprint assessment. Furthermore, the company actively participates in the CDP Carbon Disclosure Project using the TCFD framework. Through these initiatives, AcBel responsibly discloses, evaluates, and manages environmental risks and opportunities, enhancing corporate resilience and mitigating environmental impacts.

 

Leverage Its Influence; Establishment of Climate Resilience in the Supply Chain

As the negative impacts of climate change continue to intensify, AcBel is taking multiple responsive actions and leveraging its influence to assist its supply chain partners in implementing climate risk management and working towards net-zero emissions goals. AcBel is dedicated to establishing a climate-resilient supply chain to effectively address the challenges posed by climate change.

Facing the risks of climate change and the rapidly evolving markets, we have confidence in collaborating with value chain partners. Through long-term planning of overall operational needs, strengthening internal management and communication, formulating relevant governance policies and market strategies, and implementing digitalized intelligent governance models, we can swiftly respond to internal and external changes and shape future sustainable competitiveness. Our ultimate goal is to achieve sustainable development for a happy enterprise.

 

Chairman & President    Jerry Hsu

Financial Performance

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Corporate Governance

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R&D and Innovation

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Environment

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Partnership

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Employment

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Social Participation

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Corporate Governance

Founded in 1981, AcBel has adhered to its corporate core values and theory of business over nearly four decades. To live up to one of the company's fundamental values, integrity, the company abides by the government's laws, formulating related regulations, protecting shareholders' interests, strengthening responsibility and function of the board of directors as well as the supervisors, enhancing risk prevention management, and realizing internal control and audit. AcBel also strives to respect the interests of stakeholder and increase the information transparency.

In the meantime, AcBel sets up a position "Director of Corporate Governance," as regulated by pertinent laws. This position is served by the highest-ranking qualified director of related financial departments at AcBel. His or her main responsibilities are to handle matters related to the board of directors' and shareholders' meetings in accordance with the law, to provide information necessary for the directors to perform their business and to collect the latest legal and regulatory developments related to the operation of the company as to assist the directors in complying with the law, and to assist the directors in their appointment and continuing education, etc.

The company formulates relevant operation guidelines in accordance with related government laws and regulations, builds corresponding departmental organizations for operation needs, abides by international community’s human rights ethics, strives to alleviate climate changes, and strengthens the foundation for sustainable corporate operation. Moreover, AcBel is consistently devoted to maximizing shareholders' interests and for this we consider all stakeholders’ opinions to forge a sustainable society with fairness and justice so as to fulfill our responsibility as a corporate citizen.

AcBel Annual Report : https://www.acbel.com.tw/en/annual-report

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Note: The main responsibilities of each department can be found in the 2022 annual report on pages 6-8, while the professional backgrounds of various managers can be found on pages 18-19.

Board of Directors

The board of directors is the highest governing body of the company, and according to the "Corporate Governance Best Practice Principles" of AcBel, Article 20 states that directors should possess the knowledge, skills, and qualities necessary to perform their duties. Taking into account the company's operational structure, industry development, and future trends, the board of directors comprises members with diversity, including different genders, ages, industry experiences, professional knowledge, and abilities. This diversity strengthens corporate governance and promotes the sound development of the composition and structure of the board of directors.

The nomination and selection of directors in the board of directors adhere to AcBel's "Procedure for Director Elections" and "Corporate Governance Practice Principles." The process follows a candidate nomination system and aims to select directors who possess the necessary capabilities to fulfill their duties. The selection process is conducted openly and transparently. The appointment and supervision of the company's management, oversight of the company's operational performance, prevention of conflicts of interest, and exercising authority in accordance with government regulations and the company's bylaws are among the responsibilities carried out by the board of directors.

The most recent board of directors election took place on May 26, 2023, resulting in the appointment of one director and one independent director for the 20th board of directors. Currently, the board of directors consists of 12 members with diverse backgrounds, experiences, and expertise from various professional fields. The directors who do not hold executive positions within the company account for more than half of the board seats. Among the board members, there are 4 independent directors who meet the professional qualifications, work experience, restrictions on concurrent independent directorships, and independence criteria outlined in the government regulations on "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies."

In addition to the aforementioned composition, employees of the company make up 16.67% of the board members, while independent directors account for 33.33% of the board. Among the independent directors, three of them have served for less than three years, while one has served for three years or more. The average age of the directors is 68.6 years, and the average tenure is 2 years.

In the year 2022, the board of directors held 7 meetings to discuss matters related to corporate governance, risk management, compensation, and sustainable ESG practices. If any discussions involved the personal interests of board members, proper procedures were followed for avoiding conflicts of interest, and the details of such discussions and resolutions were disclosed. The average attendance rate at board meetings was 98.57%, and all directors fulfilled their training requirements according to the regulations, with an average of 8.5 hours of training completed.

Information regarding the educational and professional backgrounds of the directors, their diversity, training records, meeting operations, shareholdings, other company positions, and potential conflicts of interest with spouses or second-degree relatives has been voluntarily disclosed in the company’s annual report, official website, and the Taiwan Stock Exchange Market Observation Post System. You can refer to pages 9-21 and 46-47 of the 2022 annual report for the relevant information. For details about meeting discussions and conflicts of interest, please refer to pages 29-33 of the 2022 annual report and AcBel website - Corporate Government section.

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Board Performance Evaluation

To ensure effective corporate governance and enhance the efficiency of the board of directors, AcBel has established the "Board Performance Evaluation Guidelines." The company conducts regular evaluations, including self-assessments by the board of directors and functional committees, as well as self-performance evaluations by individual directors. Additionally, an external assessment of the board's performance is conducted every three years by an external evaluation organization.

In 2022, AcBel engaged the services of external experts, KPMG, to conduct an external evaluation of the board of directors and its members' performance. The evaluation was aimed at assessing the effectiveness and performance of the board as a whole, as well as the individual directors. The results of this evaluation were included in the board report presented on March 8th and disclosed on the company's official website and the public information observation system.

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Notes |
1. The performance evaluation of the Board of Directors is presented using a 5-level rating scale, where 1 represents poor performance and 5 represents excellent performance. The overall rating falls within the range of "excellent" to "good," indicating a strong performance of the Board.
2.The performance evaluation report can be found on the company's official website under the "Corporate Governance" section - Board of Directors and Functional Committees - Board Performance Evaluation.

Shareholders' Meeting

The company regularly convenes shareholder meetings in accordance with legal requirements and encourages shareholders to exercise their rights, actively participate in company affairs, strengthen shareholder activism, and communicate the company's ESG practices to promote sustainable corporate development. Additionally, to ensure equal treatment of investors and create a friendly investment environment, the company annually publishes the "Shareholders' Meeting Handbook and Supplementary Materials," "Shareholders' Meeting Annual Report," and "Annual Financial Report" in both Chinese and English versions. These initiatives aim to enhance the transparency of corporate governance information.

In 2022, the company held 1 shareholder meeting and 2 corporate briefings. Detailed information regarding the major resolutions, post-meeting implementation status, and the list of major shareholders can be found in pages 76, 85-86 of the AcBel 2022 Annual Report and on the AcBel website under the shareholder meeting information section.

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Functional Committees - Remuneration Committee, Audit Committee and Corporate Sustainable Development Committee

The Board of Directors establishes three functional committees, namely the Audit Committee, Remuneration Committee, and Sustainable Development Committee, to oversee governance practices. These committees are primarily composed of independent directors and assist the Board in fulfilling its responsibilities and enhancing the quality of decision-making. They regularly report their resolutions to the Board, ensuring transparency of operational information and safeguarding shareholder rights.

The functional committees discussed various topics in the year 2022, including financial reporting, audit plans, business expansion, employee compensation, director and executive compensation, and strategies for ESG development. For detailed information and the operational details of the committees, please refer to pages 35-38 and 52-53 of the AcBel 2022 Annual Report.

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Remuneration of Board Members & Employees

The company has implemented a robust director and executive remuneration system to ensure transparency, fairness, and institutionalization of remuneration. The system establishes a linkage between performance indicators and rewards and incorporates ESG considerations, including economic, environmental, and human rights impacts. The standards and criteria for remuneration are determined by the Remuneration Committee and reviewed periodically to strike a balance between sustainable business operations and risk management. Independent directors also provide recommendations on remuneration allocation based on company performance, future development, industry salary levels, and risk tolerance. These recommendations are approved by the board of directors and reported to shareholders at the general meeting.

The company follows the executive remuneration policy that is based on the company's salary policy, the market salary levels for similar positions in the industry, the scope of responsibilities within the company, and the contribution to the company's operational goals. The remuneration is provided in accordance with government regulations and the company's bylaws. When the company generates profits after deducting employee remuneration and director compensation from the pre-tax profits for the year, it should allocate a minimum of 2% for employee remuneration and a maximum of 2% for director compensation.

In 2022, the ratio between the annual total compensation of the highest-paid individual and the median total compensation of other employees (excluding the highest-paid individual) was 16.03. Additionally, comparing the compensation adjustment of the highest-paid individual between 2022 and 2021 to the median adjustment (excluding the highest-paid individual), the ratio was 4.51.

In 2022, based on the resolution passed by the Board of Directors in March 2023, an amount of NTD 55,122,987 was allocated for employee remuneration and NTD 7,874,712 was allocated for director compensation. Both amounts were disbursed in cash. Detailed information regarding the remuneration will be disclosed regularly in the annual report.

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Tax Policy

AcBel's tax policy follows the regulations of each operating location and emphasizes three key requirements: Compliance

Management, Effective Communication, and Transparent Disclosure. Taking into account the impact and risks of business operations and the interests of the company's shareholders, AcBel optimizes its tax operations through a prudent and practical approach to tax matters.

➊ AcBel adheres to local tax laws and regulations, honestly declares its taxes within the prescribed deadlines, and fulfills its social responsibility as a taxpayer by paying taxes dutifully.
➋ AcBel discloses tax information in accordance with regulations in its financial statements to ensure transparency of information.
➌ AcBel does not engage in tax planning with the purpose of tax avoidance by utilizing tax havens or countries with low tax rates.
➍ Related-party transactions are conducted in accordance with the internationally recognized transfer pricing guidelines published by the Organization for Economic Cooperation and Development (OECD) and adhere to the principles of normality transactions.
➎ AcBel establishes a relationship of mutual trust and engage in open and honest communication with tax authorities.
➏ AcBel considers the tax implications in all significant transactions and decisions.

Tax Management Mechanism

Regulation Compliance

AcBel and its operating bases are fully aware of the tax laws and regulations in the places where they operate. When interpreting the tax laws and regulations, they should consider both the literal meaning and the legislative intent, and comply with all relevant tax laws and regulations in the places where they operate. The tax liability is correctly calculated by the company's internal finance unit and presented through the company's internal auditing processes to ensure that the tax information is reported and paid within the required time frame.

External Communication

AcBel supports the government's initiatives to promote corporate innovation, research and development and economic growth, as well as its rental tax policy. The company is committed to transparency in tax information and to timely and appropriate communication with the tax authorities or appointment or consultation with external professional advisors on new tax matters and complex tax situations to ensure proper compliance with tax regulations and reporting obligations.

Tax information is regularly audited by external professional accountants on a quarterly basis and reviewed and improved at audit meetings. We also regularly disclose the tax information of the financial statements certified by the accounting firm, and compile the tax governance of the company and its operating bases for publication on the company's website and in the annual report of the shareholders' meeting.

Risk Management

Although the uncertainty of tax risk is relatively low due to the complexity of tax regulations and compliance obligations of AcBel and its operating bases, the company will seek advice from outside professional advisors in a timely manner to reduce or eliminate the risk of legal sanctions, financial loss or damage to goodwill due to non-compliance with tax laws and regulations for tax risks of significant uncertainty and high complexity.

AcBel assigns internal personnel to perform tax calculation and payment. Through internal audits, the company ensures compliance with operating procedures and tax regulations, and cooperates with its independent audit unit to perform internal audits and controls on a regular basis to ensure the implementation of tax compliance.

Talent Cultivation

AcBel is committed to enhancing the function of tax professionals to ensure the operational capability of tax-related personnel. The company also invites external accounting firms to hold one to two in-house financial and taxation seminars every year to help our employees understand the changes in relevant regulations and prepare for them in advance to ensure proper compliance with tax regulations and reporting obligations.

Whistle-blowing Mechanism

The company has set up an online whistle-blowing mailbox on its official website, providing stakeholders to report illegal taxation or unethical events, which will be dealt with by dedicated personnel anonymously. In 2021, there is no single event reported.