Supply Chain Management

1. New Supplier Registration

• Supplier Code of Conduct The Company establishes a Supplier Code of Conduct aligned with international human rights, environmental, and labor standards. This serves as a primary requirement that all suppliers must acknowledge and sign before commencing any business transactions.
• Sustainability Risk Assessment Before registration, suppliers must undergo a preliminary ESG risk assessment considering business information, product or service categories, industry specific risks, and geographical locations.

2. Supplier Qualification

• Detailed Sustainability Assessment Selected suppliers undergo an in depth sustainability evaluation using ESG questionnaires and self assessment systems covering labor practices, safety, environment, and governance.
• External Certifications The Company encourages suppliers to provide evidence of international certifications such as ISO 14001, ISO 45001, SA8000, or other relevant standards to verify their commitment to sustainability.
• On site Supplier Audits Random inspections and site visits are conducted to verify compliance with requirements and provide concrete recommendations for improvement.

3. Bidding and Tendering

• ESG as Selection Criteria Sustainability factors such as waste management, resource efficiency, and labor standards are integrated into the evaluation criteria for bidding and tendering. These are considered alongside price and quality to promote socially and environmentally responsible competition.

4. Performance Evaluation

• Annual Performance Review The Company conducts supplier performance evaluations at least once a year, focusing on on time delivery, product or service quality, and compliance with ESG requirements.
• Document Verification Suppliers must submit performance reports or documentation such as environmental audit reports, safety records, and labor training logs upon request to ensure transparency and traceability.
• On site Audits If risk indicators are identified, the Company will perform additional on site audits to review compliance and identify immediate corrective actions.

5. Collaboration for Corrective Actions

• Corrective Measures for Non Compliance Upon detecting any violation of sustainability guidelines, the Company issues a warning notice with improvement recommendations and monitors progress within a specified timeframe. Failure to improve may lead to temporary or permanent suspension of cooperation.

6. Supplier Capacity Building

• Non tier 1 Supplier Management Recognizing the importance of secondary suppliers, the Company has initiated data collection and risk management for this group to ensure sustainability across the entire supply chain.
• Business Continuity Risk Management The Company analyzes and monitors risks that could disrupt procurement, such as natural disasters, logistics crises, or environmental events, to develop joint emergency response plans.
• Sustainability Impact Management The Company encourages suppliers to enhance their ESG capabilities by developing improvement plans aligned with corporate sustainability goals, fostering strong and long term partnerships.

The supplier selection process considers reputation, capability, expertise, financial stability, and legal compliance. It emphasizes equitable treatment, transparency, and business integrity. The Company is committed to fulfilling contractual obligations and strictly adhering to its Code of Conduct through the following guidelines:

All executives and personnel are responsible for supporting and strictly adhering to this procurement management framework. Operations must uphold human dignity, equality, and fairness without discrimination based on physical or mental conditions, race, nationality, religion, gender, age, or education to promote a culture of diversity, equity, and inclusion.

1. Supplier Status

   Business partners, including manufacturers, operators, distributors, service providers, or contractors, must maintain clearly verifiable and transparent business premises.

2. Resource Readiness and Operational Capability

   Partners must possess adequate personnel, machinery, equipment, products, services, and warehousing facilities, alongside financial stability and a credible operating history to ensure long-term business continuity.

3. Performance and Reliability

   Suppliers must demonstrate a satisfactory track record regarding product quality, service delivery, on-time performance, after-sales support, warranties, and strict adherence to mutually agreed contractual terms.

4. Legal Compliance and Business Ethics

   Business partners must strictly comply with all relevant rules, regulations, and laws, operating with fairness, transparency, and accountability. They must have no conflicts of interest with the Company, no history of corruption or contract abandonment, and must not be blacklisted by government or private agencies in accordance with good corporate governance principles.

5. Social and Environmental Responsibility

   Suppliers must demonstrate a commitment to social and environmental responsibility, covering human rights, labor practices, business ethics, and environmental compliance, while striving to mitigate environmental impacts in line with sustainable development pathways.

The Company reviews and updates these supplier selection criteria at least once a year, or upon significant contextual or legal changes, to ensure alignment with emerging risks and international standards. This process remains a vital component of the Company’s sustainable procurement strategy, promoting transparency, fairness, and accountability toward all stakeholder groups.

To maintain effective and comprehensive procurement management, the Company has established a systematic segmentation framework based on risk levels, contract value, strategic importance, and substitutability, with assessment guidelines as follows:

1. Critical Suppliers

   Suppliers with high contract value, significant spend, and low substitutability that are essential for revenue generation and carry high risk profiles. The Company mandates annual performance reviews through Vendor Evaluation Forms, On-Site Audits, and sustainability assessments, particularly for categories such as LED displays.

2. Non-Critical Suppliers

   Suppliers with moderate spending or low contract value and medium to low risk levels. They undergo annual reviews via Vendor Evaluation Forms and Vendor Self-Assessments, covering areas such as construction, spare parts, IT services, and consumables.

3. General Suppliers

   Suppliers with relatively low transaction values and minimal business risk. Given their high substitutability and low impact on operations, assessments are conducted on a case-by-case basis rather than annually.

4. Critical Non-Tier 1 Suppliers

   Entities that do not supply the Company directly but play a vital role within the supply chain of Critical Tier 1 suppliers, such as producers of essential components or key sub-suppliers.

The Company identifies and classifies Critical Non-Tier 1 Suppliers based on the following criteria:

1. Direct connection to Critical Tier-1 Suppliers

   with a significant role in production or services, such as LED panel manufacturers, key raw material providers, or specialized subcontractors.

2. High difficulty in short term

   substitution or limited market alternatives.

3. History of operational disruptions impacting Critical Tier 1 suppliers or Company deliveries

   such as delays, supply shortages, or quality deviations.

4. Operations located in high risk regions

   including areas prone to geopolitical tensions, natural disasters, or regulatory uncertainty that could disrupt the supply chain.

1. Coordinate with Tier 1 suppliers to obtain supply chain data for mapping purposes

   such as identifying key subcontractors or primary raw material manufacturers.

2. Conduct preliminary risk assessments through indirect evaluation

   using questionnaires focusing on quality environmental management labor law compliance and sustainability practices in collaboration with relevant Tier 1 partners.

3. Periodically monitor and audit risks alongside Tier 1 suppliers

   particularly when risk indicators arise such as delivery delays quality issues or human rights violations within the supply chain.

4. Integrate assessment protocols with Tier 1 on site audits or supplier meetings

   by incorporating risk topics related to subcontractors or secondary suppliers into the evaluation forms.

Systematically identifying and managing Critical Non Tier 1 suppliers enables the Company to perform comprehensive end to end supply chain risk management and develop appropriate response plans. This approach supports business continuity mitigates the likelihood of unforeseen incidents and promotes long term sustainability for the Company and its partners across all levels.

Social and Environmental Risks

1. Climate Change Risk

   Global emphasis on climate change and rising temperatures may lead to extreme weather events and natural disasters. Such incidents could disrupt the Company’s core operations, affecting advertising structures or causing supplier logistics delays that hinder timely product delivery.

2. Human Rights and Labor Practices Risk

   Potential violations of labor laws or human rights by suppliers could significantly damage the Company’s corporate image and investor confidence. To mitigate this, the Company conducts continuous monitoring through rigorous assessments and strict enforcement of the Supplier Code of Conduct.

Supplier risk assessments encompass economic, social, and environmental dimensions

1. Risk Identification

   Identifying and gathering factors or events that could impact organizational operations, arising from internal sources such as management, personnel, and systems, and external factors such as economic, political, legal, and environmental conditions. Identified risks encompass strategic, operational, financial, and compliance categories, including the assessment of emerging risks and sustainability (ESG) risks to ensure comprehensive and rigorous oversight.

2. Risk Analysis and Assessment

   Analyzing the root causes and contributing factors of risks, while evaluating the likelihood of occurrence and potential impact through both qualitative and quantitative methods. Risks are prioritized and categorized by severity relative to the organization’s risk appetite, enabling the selection of appropriate management strategies for each risk type.

3. Risk Response Planning

   Developing and selecting strategies or measures to address assessed risks, including risk avoidance, reduction, transfer, or acceptance for risks within controllable levels. The selection of these measures considers resource availability, cost-effectiveness, and the overall impact on organizational goals.

4. Risk Implementation

   Executing risk management plans across all relevant parties according to their roles and responsibilities. This includes establishing appropriate internal control systems, facilitating internal communication to raise awareness, and fostering a robust Risk Culture to ensure organization-wide participation as part of daily operations.

5. Monitoring and Evaluation

   Tracking the progress of risk management plans and evaluating the effectiveness of implemented measures through Key Risk Indicators (KRIs). This stage involves the continuous review and refinement of risk management approaches to align with the evolving business environment and support the achievement of organizational objectives.