ATEN International Co., Ltd

Corporate Social Responsibility ReportATEN International Co., Ltd.

Table of Contents

1

About the Corporate Social Responsibility Report

Chapter 5 Active Social Participation

Chapter 6 Environmental Protection

Chapter 8 Customer Satisfaction and Service

Appendix 1: Global Reporting Initiative Standards(GRI Standards) Index

Appendix 2:Independent Assurance Opinion Statement

Manager's Preface

Chapter 1 Implementation of CSR　　　

Chapter 2 Enterprise Operations

Chapter 3 Corporate Governance

Chapter 4 Employee Care

1.1 CSR Institutionalized Operation1.2 Corporate Social Responsibility

Management Committee1.3 IdentificationofStakeholders1.4 CommunicationWithStakehold-

ers1.5 Major Topic Management

P6

P15

P5

P3 P31 P47 P93

P66

P103

P107

2.1 About ATEN2.2 Worldwide Presence2.3 Operational Achievements2.4 Honors and Recognition2.5 External Organization Participa-

tion

5.1 Education Care and Cultural Asset Promotion

5.2 Elderly Activities and Care fortheDisadvantaged

5.3 Community Environment Maintenance

5.4 Overseas Record

8.1 Comprehensive Customer Service System

8.2 GlobalCustomerAfter-salesServiceSatisfactionSurvey

8.3 Product Knowledge Educational Training

8.4 Customer Health and Safety

8.5 InformationSecurityand Customer Privacy Protection

3.1 Corporate Governance Structure

3.2 BoardofDirectors3.3 Governance Level

PerformanceEvaluation3.4 Shareholder Rights3.5 Ethics and Integrity

4.1 EmployeeDiversityandEqual Opportunity

4.2 System Training and Knowledge Spreading

4.3 Friendly WorkplaceandSports Encouragement

6.1 Friendly Environment Actions and Goals

6.2 Climate Change Responsive ActionsandRiskManagement Assessment

6.3 Reduce Environmental Impacts

6.4 Environmental Sustainability Management

6.5 Greenhouse Gas Inspection Management

Chapter 7 Supply Chain Management

P84

7.1. Sustainable Supply Chain Management Action and Goal

7.2 Sustainable Supply Chain Management Standards

7.3. Sustainable Supply Chain Management Strategy and Goals

7.4 Supply Chain Management Performance

7.5 Sustainable Supply Chain Common Growth Plan

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2

3

About the “ATEN Corporate Social Responsibility Report”

Weappreciateyourreviewofthe8thissueoftheCorporateSocialResponsibilityAnnualReportvoluntari-lyissuedby“ATENInternationalCo.,Ltd.”WiththisReportissuedannually,wehopetoeffectivelyestab-lish an interactive communication bridge withallstakeholders. Inaddition,wealsolookforwardtoyourfeedbackandcomments in lightofmutual learningandgrowthwithoneanother,aswellasachievinggreatervaluefortheexistenceofthecorporation.

Report Integrated With Corporate Core Values“Integrity”,“Caring”,“Ambition”,and“Novelty”(ICAN)arethefourcorporatecorevaluesofATEN,andthespiritofthesefourcorevaluesaredemonstratednotonlyinthehardpowerofcorporateoperationandroutinemanagement,butalsothesoftpowerofcorporatecultureandCSR,etc.WealsoupholdthephilosophyofICANtopromoteATENCSR,inlightofachievingpositiveimpactsontheEnvironment,Soci-ety,andGovernance(ESG)withcorporatepower.ThroughtheissuanceofanAnnualCorporateSocialRe-sponsibilityReport,weareabletousethissoftchanneltoconveynon-financialinformationnotcontainedintheFinancialStatementsandAnnualReportstoagreaternumberofdomesticandinternationalstake-holdersapartfromshareholders,inlightofcreatingagreaterfuturejointlywithallstakeholdersthrougheffortinordertofurtherachieve“corporatesustainability”and“globalsustainability”.

2011 2012

2013

2015 2016

2017

2014

4 Core Values CSR ESG Sustainability

4

VerificationThis Annual Report content is entrusted to a third partyverification institutionof the“BritishStandardsInstitution” (BSI) toperformverification accordingto AA1000AS:2008 and Class I medium assurance level specified in its2018Appendix,aswell as thecoresectionsofGRIStandards.For the IndependentAssuranceStatement,pleaserefertotheAppendixofthis Report.

Publishing the ReportPrevious Version: Issued in June 2018.

Current Version: Issued in June 2019

Next Version: Scheduled to be issued in June 2020.

Contact UsATENInternationalCo.,Ltd.PresidentOfficeMr.Kao,ManagerAddress: 3F,No.125, Sec. 2,DatungRoad, SijhihDistrict,NewTaipeiCity221,TaiwanTel: +886-2-8692-6789Fax: +886-2-8692-6577Email: [email protected]: www.aten.com

In August 2018, the most representative corporate social responsibilityawardofthehighestcredibility intheR.O.C.-“CommonWealth CSR Award” announced the 2018 award winningresults.ATENhonorably receivedthe [FirstPlace]ofthe2018“CommonWealthCSRAward” formedium-sizeenterprises among more than 200 enterprises. This was the tenth time ATEN received such recognition, and it was also the secondtimefortheCompanytoreceivetherankingofNo.1formedium-sizedenterprisesafter2014.

Report Period and ScopeThe informationdisclosed in thisReport includes theconcept andactions related to the aspects of thecorporate governance, environmental protection, and socialparticipation,etc.ofATENInternationalCo.,Ltd.duringtheperiodfromJanuary1,2018toDecember31,2018,andmajoreventsaredisclosedtothedateofMarch31,2019.ThecontentofthisReport ismainlyfor the corporate headquarters in Taiwan: “ATENInternational Co., Ltd.”, and the Financial Statements accordingtothescopeoftheConsolidatedStatements,andsocialwelfareinformationincludethecontentsforsomeoftheoverseassubsidiariesoftheGroup.

Report Drafting PrincipleThisReportisestablishedtocopewiththetrendoftheincreasingsignificanceofcorporatesocialresponsibilityworldwide and to respond to the promotion ofcorporate social responsibility informationdisclosurerequestedby theTaiwanStockExchangeaswellasaccordingtothecoresectionsoftheGlobalReportingInitiative Standards (GRI Standards) proposed by the Global Reporting Initiative (GRI), with the Company's besteffort through informationdisclosure.Eachyear,the Company publishes the Chinese and English versionoftheReportontheCompany'swebsite.

In order to protect the environment and cherish natural resources, this report will only be published electronically on ATEN's Chinese and English website.

WewelcomeanyopinionsorinquiriesforinformationrelatedtothisReport.

Manager's PrefaceManager's Preface

ATENwasestablished in1979.Uptothepresentday,theCompanyhasbeenestablishedfor40years. Intheearlystages,theCompanyfocusedontheresearchandmanufacturingofautomaticcontrolproductsof“ACcarrierwirelessremotecontrols”,“RFwirelesssecuritysystems”,etc. In1980,theCompanychangeditsproductfocusandbeganthedevelopmentofaDataSwitchBoxseriesofproductsandalsostartedthesharingandconnectionamongcomputerequipment.After1990,theCompanystartedthedesignandproductionofthepresentmainproduction linesof“KVMmanagementsystems” inordertoassistenterprisesinhandlingcomputerandserverupgrademanagement issues, in lightofsatisfyingthedemandsofenterprisesfacingglobalcompetition. In recentyears, theCompanyhas furtherused thecore technologyofATENtodevelop the“professionalA/Vsystems”and“energymanagementsystems”.Overthepastfortyyears,ATEN’smanagementteamhavesought innovationandgrowthopportunitiesbasedonitscorebusiness.In2018,theconsolidatedrevenuewasabletobreakthroughthebarrierofNT$5billiontoreachtherecordhighofNT$5.173billionfortheCompany,andthenetincomereachedtheamountofNT$1.588billionalongwiththegainfromthedisposalofnon-operatingbusiness.Theearningspershare(EPS)alsoreachedarecordhighofNT$13.19.

Whilemanagingthecorebusinesstoobtainexcellentoperationperformance,theCompanyalsoimplementsthe“CorporateSocialResponsibility”CSRconceptthoroughly.Throughouttheyears,ATENhasimplementedtheinstitutionalizedoperationofthe“CSRManagementCommittee”and“CSRGroup”toseek improvement inthefouraspectsof“CorporateGovernance”,“EnterpriseCommitment”, “Social Participation”, and “Environmental Protection” continuously. In addition to the Company's continuous performance,ATENalsoactivelycooperatesand interactswithstakeholders, includinggovernmentdepartments,socialwelfareorganizations,suppliers,overseassubsidiaries,employeerelatives,andotherenterprises,etc.,orthroughdifferentmethodstosharetheexperiencesandoutcomesofATENinthepromotionofCSRwithvarioussectors,inlightofexpandingtheeffectthroughsuchincreasinginfluence.

InAugust2018,ATENhonorably receivedtheawardofFirstPlaceof the“CommonWealthCSRAward”formedium-sizedenterprisesagain,andthiswasthetenthtimefor theCompanytoreceive thisaward. ItwasalsothesecondtimefortheCompanytoreceivethehonoroffirstplaceafterreceivingthefirstplaceawardformedium-sizeenterprise in2014,demonstratingATEN’soutstandingachievement in longtermdedicationintheCSRfield,and leadingdomesticmedium-sizedenterprisestoencouragecorporatevaluesand influence.Inthefuture,theCompanywillcontinuetoupholdtheprincipleof“corporatesustainabledevelopment”and“intergrowthandco-prosperityofenterpriseandstakeholders” inresponsetothe17sustainabledevelopmentgoals (SDGs)proposedbytheUnitedNations,therebytreatingthe improvementofthewelfareofman-kindaspartoftheCompany'sresponsibility,inordertoallowsuchpositivecirculationtoexpandfurtherandtocreateagreaterworldwithitsbesteffort.

CEO & President of the Board

5

Implementation of CSR1.1 CSR Institutionalized Operation

1.2 Corporate Social Responsibility

Management Committee

1.3 Identification of Stakeholders

1.4 Communication With Stakeholders

1.5 Major Topic Management

6

1. CSR Promotion

7

OverthedecadesofpromotingCSR,ATENhasestablishedstrong linksoftheCompanywithemployees,society, theenvironment,andall stakeholders inallof theaspectsof“corporate governance”, “environmental protection”, “enterprise commitment”, and “social participation”, etc., such that the responsibilities required to be borne by the enterprise are considered during the internal discussion and decision promotion process. In addition, the Company further expects tobenefit fromexternal ripple effectssuch that a greater numberof companies, groups, orindividuals can also join us, thereby jointly creating a greater environmentforlivingwithourbestefforts.

We also pay close attention to the global sustainability and corporate social responsibility related trends and issues. In2016, theUnitedNationsofficially launched the17sustainabilitydevelopmentgoals (SDGs),and in2017,theCompany immediately reviewed the internal factorsonthe sustainable development, corporate capability, and levelofconcernof thestakeholdersonCSR issues,etc.,anddecided toactively respond to the10goalsof the“eliminationofhunger”,“healthandwelfare”,“educationquality”, “gender equality”, “employment and economic growth”, “climate action”, “marine ecology”, “terrestrial ecology”, “peace and justice system”, “global partner”, etc. Furthermore, the Company continues to examine ATEN’scorrelationandexecutabilityfortheother7goals,inlightofconnectingwithglobalcommongoalsinthegrantstageofsustainabledevelopment,andto jointlypromotethesuccessoftheSDGsby2030.

1

※ThisformistranslatedandpreparedbytheCSROneSustainabilityReportPlatform.

1. CSR Promotion

8

1.1 CSR Institutionalized Operation 1.2 Corporate Social Responsibility Management Committee

ATEN understands that only thorough proper organization design and institutionalized operationcanCSRbeimplementedeffectivelyinordertoallowtheresponsibilityrequiredto be borne by the Company to be integrated into the corporate culture, and to become theoperationroutineofATEN.Accordingly,since2012,wehavepassedthefollowinginternalregulationsrelatedtothecorporatesocialresponsibility intheBoardofDirectorsMeetings,andthepurposeistoensurethethroughexecutionofATENCSRthroughaclearsystem.

“ATEN Corporate Social Responsibility Management Committee” is the highest corporate socialresponsibilityorganizationinternallyatATEN.UnderthesupervisionoftheBoardofDirectors,weadoptedtheinstitutionalizedoperationmethodandthemembersofthe“CSRGroup” under the “Corporate Social Responsibility Management Committee” convene meetingsmonthly todiscuss thegoal settingof the issuesof“corporategovernance”,“enterprise commitment”, “social participation”, and “environmental protection”, etc. andfollowuponexecutionstatus. Inaddition, reportsarepresentedtothe“CorporateSocialResponsibilityManagementCommittee”andthe“BoardofDirectors”periodicallyinordertoensurethattheimplementationdirectioncomplieswiththeexpectationofthemanagementlevel.Underthearrangementofsuchinfrastructure,inadditiontotheseniormanagement’sleadinginthepromotionofCSRtoachievethecorporatecultureinatop-downmanner,itisalsoabletofurtherensuretheeffectivenessoftheCSRoperation.

[TheCommitteeconsistsof10members,withtheChairmanactingastheCommissioner,andfortheremaining9members,thehighestsupervisorsoftheR&D,Manufacturing,Procurement,Planning,OfficeofGeneralManger,GeneralAdministration,HumanResources,CustomerService,

andQualityAssuranceDivisions,etc.taketherolesoftheCommitteeMembers.]

In addition to the institution and regulations, the Company also integrates the CSR with thecorporatecorevalueofATEN(ICAN:“Integrity”,“Caring”,“Ambition”,and“Novelty”)in order to establish reward regulations, such as: “Sun Metal” and “Volunteer Points”, etc., toencouragethestafftoalsorespondtovariousCSRconceptsandactivitiespromotedbytheCompanyatwork,aswellastotreatitasemployees’individualsocialresponsibility.

April 24, 2012

ATEN International Co., Ltd. Code of Ethical ConductApril 24, 2012

ATEN International Co., Ltd. Code of IntegrityApril 24, 2012

Corporate Governance Best Practice Principles November 11, 2014

Corporate Social Responsibility Code of Practice

Procedure for Ethical Management and Guideline for Conduct

Corporate Social Responsibility “Policy Statement” and “Institu-tion and Management System”

“ATEN Corporate Social Responsibility Management Committee” Group Structure

November 9, 2016

January 20, 2017

ATEN Corporate Social Responsibility Management Com-

mitteeCommissioner: Chair-

manCommittee Mem-bers: Total of 10

members.

Director- Gen-eral

The Ching-Tang

Education Foundation

Employee Care Group

Social Partici-pation Group

Green Opera-tion Group

Stakeholder Communica-tion Group

Corporate Governance

Group

1. CSR Promotion

9

The“CSRGroup”undertheCommittee,whichconsistsofrepresentativesfromalloperationaldepartmentsoftheCompany,holdsmonthlymeetingsconvenedbythegroup’sDirector-Gen-eraltoplanandexecuteallrelatedaffairsandisrequiredtopresentreportstotheCorporateSocialResponsibilityManagementCommittee’sHeadandotherCommitteeMembersonareg-ularbasis.TheCSRGroupisalsoresponsibleforexecutingimportantdecisionsregardingCSRpoliciesanddirectionsmadebytheCommittee.TheannualstatusandimplementationstateofallCSRprojectsformulatedbytheCSRCommitteeshouldbereportedregularlytotheBoardofDirectors.

Committee Organization and Mission Description

Duty and Organization Name

Responsible Department Mission Description

Director-General OfficeofGeneralManger

ExecuteresolutionsoftheCommitteeMeetings,andmanagetheroutineoperationofeachgroupandrelevantworkprogress,andreporttheexecutionstatusinthe Committee Meeting periodically.

The Ching-Tang Education Foundation

OfficeofGeneralManger ContactandmanageCompanyandfoundationaffairs.

Corporate Governance GroupInvestor Relationship andCapitalMarketDepartment

Integratevariouscorporategovernanceregulationsandsystemsestablishedbyrelevantdepartments.ImplementtheCompany’scorevaluesofintegrityandhonestyandinformationtransparency,focusonshareholders’interests,andthemanagementprincipleofproperinternalcontrol.

StakeholderCommunicationGroup

OfficeofGeneralManger

Identifystakeholders,establishcommunicationchannelsandmechanisms,organizeandrespondtoissuesofconcernofstakeholders.PreparationofCorporateSocialResponsibilityReports,manageandannouncerelevantinformationofcorporatesocialresponsibilityexternally.

Investor Relationship andCapitalMarketDepartment

MarketingandPromotion Center

Green Operation Group

Quality System Department

Establish green design capabilities and systems, develop tools complying with relevant environmental protection and monitoring analysis mechanisms, promote variouswastereductionandprojectsofresourcereuse,greenhousegasreduction,etc.Cooperatewiththegovernmentpublicdepartmentpolicyrequirementsexternally,andresponsiblefortheenergysavingandwatersavingpolicyeducationandpromotionoftheentireCompany.ResponsibleforpromotingthegreenmanufacturingprocessandgreenproductrelatedworksfortheentireCompany.

Management Department

FactoryAffairsDepartment

Social Participation Group

OfficeofGeneralManger ResponsibleforpromotingcommunicationoftheGroupexternallyandwithsociety,continuetodevoteeffortsintechnologyresearchanddevelopment

cooperation,long-termeducationassistance,socialwelfareactivitypromotionofartsandculture,aswellassportsactivities,etc.Volunteer Club

Employee Care Group

Human Resources Center

Planningandpromotionoflaborandmanagementrelationships,employeewelfare,healthworkplace,trainingandjobpromotion,genderequality,safetyandhealth, employee care, culture inheritance, etc.

OccupationalSafetyandHealthOffice

FactoryAffairsDepartment

1. CSR Promotion

10

1.3 Identification of Stakeholders 1.4 Communication with Stakeholders

ATTNdefines the stakeholders tobe individuals,groups,ororganizationscapableofaffectingATENorbeingaffectedbyATEN.The stakeholdersofATEN includeclients,shareholders, employees, suppliers, community organizations, the media, and government agencies,etc.Throughdiversecommunicationchannels,weunderstand the issuesofconcernof stakeholders,anddiscuss themajor topicsaccordingly,aswellasestablishrelevant management directives and execution plans in order to respond to the needs and expectationofthestakeholders.

We value communicationwith our stakeholders significantly. In addition to theestablishmentof thestakeholders’sectionontheCompany'swebsite (http://www.aten.com/tw/zh/aten-info/csr/page-stakeholders/),wealsoclearlyindicatethecontactmethodofdifferenttypesofrelatedpartiesonthewebsite.Inaddition,wealsosetupquestionnairesurveyformssuchthatstakeholderscanexpresstheirconcernforatotalof20 issues intermsofthethreeaspectsofeconomy,society,andenvironment,etc.selectedbyus,andstakeholderscanalsosubmitdifferentopinionstotheCompanyforreference.

Stakeholders’ Section

Stakeholder Contact Us

Clients Online Customer Servicehttps://www.aten.com/global/en/ (12 Languages)

Community Relations

OfficeofGeneralManagerMs.ChangEmail: [email protected]

InvestorsInvestorRelationshipandCapitalMarketDepartmentMs. HuangEmail: [email protected]

The mediaCorporateMarketingDepartmentMr.Lee,AssistantManagerEmail: [email protected]

OtherStakeholders OfficeofGeneralManagerMr.Kao,ManagerEmail: [email protected]

ATENClients

Share-holders

Employees

Suppliers

Govern-ment

agencies

The media

Social organiza-

tions

1. CSR Promotion

11

Issues of Concern of Stakeholders and Company Communication Method List

Stakeholder Issues Communication channelsFrequency of

communication

Clients

� Product Price � Products and Services Responsibility

� Customer Partnership � Technology Research and Development

� Raw Material Use and Recycled Materials

Customersatisfactionsurvey Annually

e-supportWebsitePlatform Constantly

Partner Center Webs Constantly

Customer service line Constantly

Agentconference Annually

Shareholders

� OperationalEffectiveness � Earnings Situation � Investment Planning � Corporate Governance � Enterprise Sustainability

Convening a Regular (Provisional) Shareholders' Meeting Annually

InvestorConference Irregularly

Financial report Quarterly

Annual Reports Annually

Spokesmansystem Constantly

Establishing investor relations department Constantly

Company website announcement Constantly

Corporate governance appraisal Annually

[email protected] Constantly

Employees

� SalaryandBenefits � Labor-capital Relations � Talent Nurturing � OccupationalHealthandSafety � DiversityandEqualOpportunity

EmployeeBenefitCommittee Constantly

Human Resource e-School Constantly

Capital-labor meetings Quarterly

OccupationalSafetyandHealthCommitteeMeeting Quarterly

Solution provision and improvement system Constantly

Employee’sopinionsubmissionchannels,such as employee complaint direct line at3333,[email protected].

Irregularly

Company advertisements Constantly

Stakeholder Issues Communication channelsFrequency of

communication

Suppliers

� Purchasing Price � Regular Provisions � Green Product Management � Raw Material Use and Recycled Materials

Regular quality inspection Monthly

International list Irregularly

Social organizations

� Greenhouse Gas Management � Water and Resource Management � EnvironmentalSafety � SocialBenefitandReturns

Company website Constantly

CSR Report Annually

The Ching-Tang Education Foundation Constantly

EmployeeBenefitCommittee Constantly

[email protected] Constantly

The media

� Operationaleffectiveness � Recruiting Talented Employees � Investment planning � Corporate Governance � SocialWelfare

Press releases Constantly

Pressconferences Irregularly

Interviews Irregularly

Government agencies

� DirectiveAdherence � EnvironmentalSafety � PaymentofTaxesandDuties � Political Compliance

Explanatory meetings held by supervisory agencies Irregularly

Corporate governance appraisal Annually

Publishing directives Constantly

Government agency websites Constantly

1. CSR Promotion

12

Supervisor’s E-mail Sharing of CSR Promotion Experience Internally and Externally

According to the “Corporate Governance Best Practice Principles” and relevant regulations oftheCompany,tofacilitatethesupervisorstodiscoverpossibleflawsintheCompanyinatimelymanner,andtoestablishcommunicationchannelsfortheemployees,shareholders,andotherstakeholdersandsupervisors, theCompanyhasestablishedthe“Supervisor’sE-mail”ontheCompany’swebsite.IntheeventthatanystakeholderthatisanemployeeorshareholderhasanyrecommendationsorcomplaintsfortheCompany,heorshemaysubmit relevant content to the e-mail at: [email protected]. All e-mails are received by threesupervisorsoftheCompanyinordertoprocesssuchmattersinatimelymanner.Forallinformationprovidedbythecomplainant,theCompanyalsobearsthecustodyandnon-disclosure obligation properly with due care.

To share the yearsofexperienceofATEN in thepromotionofCSRwithothers, theCompanyalsoestablishescommunicationchannelsthroughthemethodsoftheCompany'swebsite, internal employee portal website, newsletters, seminars, external speeches of seniormanagers,etc. inorder toconvey the informationof theCompany’sethicalmanagement, corporate governance, environmental protection, social participation, etc. tothestakeholders,aswellastoobtainfeedbackfromthestakeholders. Inaddition,theCompanyalsoinvitesotherenterprises,schoolteachersandstudents,employees’relativesandfriends,suppliers,etc. topromoteCSR jointlywithATEN.Throughtheorganizationofactivitiesandmessagetransmissiononeafteranother,webelievethat it isbeneficialto theestablishmentofa long-termcooperationand interactionrelationshipwith thestakeholders.

1. CSR Promotion

13

1.5 Major Topic Management

Major Issue Analysis

In recent years,ATENhasadopted the cycleof five stepsof collection,identification,arrangement,confirmation,andexaminationaccordingtothesustainabilitycontext,materiality, integrity,andtoleranceofstakeholders, inordertoestablishthematerialityanalysisofstakeholders.

Collection

AccordingtotheinteractionstatusbetweentheroutineofthemembersoftheCSRGroupandeachstakeholder,alongwiththeconsiderationsofthemajorissuesinthedomestic/foreignsameindustrysectoraswellasinternationalsustainabledevelopmenttrends(suchasthe17SDGsoftheUnitedNations),inordertocollectissuesconcernedbyallstakeholders.

Identification

TheCSRGroupperformsthesortingandpreparationofalistforthecollectedissuesofconcern.

AccordingtothediscussioncontentoftheCSRGroupmonthlymeeting,andtheconsiderationofindustrialcharacteristics, international trends, and development status in the same industry sector, 20 “CSR Critical Issues” are summarized.

Arrangement

Completethe“StakeholderCSRQuestionnaireSurvey”accordingtoeachtypeofstakeholderandstatisticallyanalyzetheresults,performexaminationagainandarrangementaccordingly.

TheCSRGroupMembersperformdiscussiononthetwoaspectsoftheeconomy,environment,andsocialimpactlevelinternallyandexternallyoftheorganizationforeachissueaswellasthelevelofconcernofstakeholders,andamajorissuematrixdiagramissummarizedforrecommendation.

Confirmation

TheinitialresultissubmittedtotheCSRManagementCommitteetoperformexamination,andafteradjustmentwiththeseniormanagement’sopinions,10issuesaresortedfromthe20CSRcriticalissuestobelistedasthe2018“CSRMajorTopics”inordertobeusedasthedisclosurefocusofthisReport.Thecountermeasurestrategiesandoutcomeperformanceoftheissueswillbeexplainedindetail.

ExaminationThereasonabilityofthemajorissuematrixdiagramwillbeexaminedatanytimeandthecommunicationmethodwiththestakeholdersisstrengthenedtocollectmorestakeholderopinionsinordertobeusedasabasisforfutureadjustments.

Major Issue Analysis

Major Issue Matrix Diagram

Co

nce

rn o

f St

akeh

old

ers

and

Imp

act

Leve

l Th

ereo

f

Level of Impact on the Economy, Environment, and Society of the Organization

Economic Aspect

High

Low High

Resource and Energy Management

Raw Material and Waste Manager

Greenhouse Gas Management

Ethical Management

Operational Achievements

Corporate Governance

legal compliance

Customer partnership

Service Quality

Social benefit and returns

Employee Welfare

Green Product

Environment Friendliness

Brand Image

Investment Planning

Customer Privacy Management

Occupational Health and Safety

Labor-Management Relationship

Training and Development

Supplier Management and Procurement Practice

Arrangement

IdentificationCollection

Examination

Major Issue Assessment

Process

ConfirmationSocial Aspect

Environmental Aspect

1. CSR Promotion

14

Major Topics, Corresponding GRI Standards, and Impact BoundaryAccordingtothefive-stepcycleforthemajorissueanalysis,themajortopicsofeachaspectandthecorrespondingGRIspecifictopics,managementdirectives,internal/externalboundaryofimpact,andsustainabledevelopmentgoalsareorganizedandcomparedinthefollowingtable:

No. Aspect Major Topics CauseCorresponding GRI Specific

Topic Standards

GRI Management Directive Corresponding Chapters and Sections

Value Chain Impact Boundary

Corresponding Sustainable

Development Goals (SDGs)

Suppliers ATEN Clients

1

Economic aspect

Ethical Management and Legal Compliance

Ethics and legal compliance are corporate management basicprinciplesofconcernandareexpectedbymoststakeholders.

205 Anti-corruption307 Legal Compliance Related to Environmental Protection419 Social Economic Legal Compliance

Chapter 3 Corporate Governance IntroductionChapter 6 Environmental Protection Introduction

◎ ■ ◎

2 Corporate GovernanceWhether the investors and government agencies value theexecutionstatusontheimprovementofcorporategovernancesignificantly.

Self-definedMajorTopics Chapter 3 Corporate Governance Introduction ■

3 Operational Achievements

TheCompanycontinuestoprofitandmaintainsexcellentoperationperformancehavingmaterialcorrelationwiththesustainableexecutionofCSR.

201 Operational Achievements 2.1 About ATEN2.2 Worldwide Presence ◎ ■ ◎

4

Social aspect

Service Quality andCustomer Partnership

The Company summarizes important issues according tothecustomersatisfactionsurveyandroutinefeedbackfromcustomersannuallyinordertocontinuously improve the service quality.

416CustomerHealthandSafety417MarketingandLabeling

Ch8CustomerSatisfactionandService Introduction ■ ◎

5 SocialbenefitandreturnsContinuoussupportforthedisadvantagedgroups,education, elderly, and arts and cultural promotion are thecommondemandsofthecurrentsociety.

203 Indirect Economic Impacts413 Local Communities

Chapter 5 Active Social Participation and Introduction ■

6 EmployeewelfareEmployee relationship maintenance and improvement ofemployeewelfarearetheissuesofsignificantconcern by employees.

401 Labor-Management Relationship404 Training and Education

Chapter 4 Employee Care Introduction ■

7

Environmental aspect

EnvironmentfriendlinessGlobal warming and ecological environmental protectionaretheissuesofmostconcernworldwide,andweareactivelyseekingsolutions.

Self-definedmajortopicsChapter 5 Active Social Participation Introduction (related to community environment maintenance)

□ ■

8 Green Product

UseofATEN’sadvantagesintheproductdesignandKVMproduct/industrycharacteristicstoactivelypromote green products, in order to comply with the expectationofgovernmentsofdifferentcountriesandthe general public.

307 Environmental Protection Relatedlegal compliance

Chapter 6 Environmental Protection IntroductionChapter 7 Supply Chain Management Introduction

◎ ■ ◎

� “Ethical Management” and “Legal Compliance” are integrated into one major topic.

� “Service Quality” and “Customer Partnership” are integrated into one major topic.

� LevelofInvolvement:DirectRelationship(■ ), Indirect Relationship ( □ ), Business Relationship ( ◎ )

Enterprise Operations2.1 About ATEN

2.2 Worldwide Presence

2.3 Operational Achievements

2.4 Honors and Recognition

2.5 External Organization Participation

15

2. Enterprise Operations

#116

2.1 About ATEN

1.6 k

40 years 58%+

NT$ 5.1 billion+

590 Items+

Industry Experience

Gross profit margin

2018 Annual Revenue

Granted and Valid Patents

Worldwide Number of Employees

Global KVM Market Share Percentage


17

Corporate Vision

“SimplyBetterConnections”hasalwaysbeenthecorephilosophyofATEN,representingATENprovidinginnovativesolutionstocreatemoreeffectiveandseamlessconnectionsbetweenpeopleandbetweeninformation.Accordingly,ATENassistsyouinconnectingwiththeworldcloselyatanytimeandanyplacethroughsharingandcaring innovativetechnologies.ATENmakesyourworkandpersonallifeeasierandsimpler.

ATEN International Co., Ltd. Established in 1979; headquarters locatedinXizhiDistrict,NewTaipeiCity, Taiwan R.O.C.; a publicly listed companytradedontheTaiwanStockExchange (StockCode:6277).

ATEN 40 Years – Passion for Excellence

“PassionforExcellence”representsATEN’sdeterminationtoseekexcellencecontinuouslyandupholdthecraftsmanspirittoseekperfection.The corporate business operationdirectionofATENwillhead toward Customer to Business (C2B) to performproductdevelopmentbasedontheconceptof thevalueofcustomers. The “customer-oriented” notion will become themost importantassetofthebrand,suchthatATENwiththeestablishmenthistoryof40years isable tobecometheNo.1brand incustomers’choiceand toexcel furtherwithcustomers.

Create a Smart Life Jointly Share Wonderful Links Together


18

Key Milestones

1979ATEN established

1990ATEN's branded product announcement.

2003ATENsharesofficiallywentpublicinTaiwan.

Taiwan StockListed

1996Established 1st worldwide branch company in the U.S.

U.S.

2006EstablishedR&Dcenterattheheadquarters.

2010EstablishedproA/Vlineofficially.

2012Establishedthegreenenergymanagementproductlineofficially.

2018Established 6 product application showrooms,accumulated to 24 showrooms worldwide.

#1 2015KVMmarketsharerankedNo.1inEuropeandAsia.

2009Established Belgium branch company in Europe.

2019 ATEN's 40th anniversary


19

Diverse Product Combination

pro A/VKVM Switches

USB and Handheld Device

Peripheral

energy intelligence

PDUs

Presently,ATENoperatesthreemainproduct lines:“KVMSwitches”,““proA/V”and“energy intelligencePDUs”.Despitetheproduct lineshavingdifferentdevelopmenthistoriesandindustrypositions,aswellasdifferentsaleschannelsandtargetcustomers,nevertheless,thesearetheuniquenessofATEN.Thequestiononhowtointegratethesethreetypesofproductlinesintoacharacteristicsolutionandtodevelopauniquebusinessmodelareimportantopportunitiesfortheshort-termincreaseofrevenue,andtheCompanyisheadinginthisdirectionwithitsbesteffort.


20

Relevant Diverse Product Development Strategy Main Industrial Application

企業

政府

交通教育

觀光娛樂

製造業

影視傳播

KVM Switches

Energy Management

System

pro A/VCentral Control Market

Core Tech-

nology

Computer

Machine

Room

Market

PC Market Channel

Media Broad-casting

Govern-ment

Enter-prise

Transpor-tation

Educa-tion

Tourism and En-tertain-ment

Manu-facturing Industry


21

Brand Management

ATEN is presently the only publicly listed company in the field of KVM Switches worldwide.

8Interbrand

SincetheCompanystartedtopromoteitsownbrandin1990,theCompanyhasgraduallyreceivedrecognitionintheinternationalmarketinrecentyears.Receivedtheglobalbrandvalueauthority survey institution, Interbrand “ 2018 Taiwan Top 35 Global Brands” award in November 2018 again.

ATENintegratesallofitsproductionlinesandusestheonesinglebrandof"ATEN”forglobalmarketingandsales.Inaddition,theCompanyfurtheractivelyestablishesoverseassalesloca-tionsandlogisticswarehousesinordertoprovideaservicestandardofhighefficiencyandconsistencytoglobalcustomers.


22

[ATEN is the corporate brand of ATEN International Co., Ltd., and is used as one single brand for sales and marketing worldwide.]

Toprovideservicequalityandbrandvalue,wealsoprovidefullsupportoftheoriginalmanufacturertoourcooperatingdistributors,systemintegrators(SI),andvalue-addedresellers(VAR),suchas:providingprofessionalsolutionguidesformaintargetedapplicationmarkets,establishingstrongpre-salessupport,providingaclearand incentive loyaltyprogram,providingcompleteandconvenientonlineproducttrainingprograms,organizingeffectiveproductseminarsandroadshows,etc.,inordertoallowourcustomerstoenjoytheircooperationwithATENinpromotingbrandedproducts,therebyenhancingATEN'sbrandpower.Certainly,“commitmenttoown-brand”isalsoanotherkeyfactorforheadingtowardthesuccess.

SOHO/SMB SolutionsAltusenTM

Enterprise Level SolutionsVanCrystTM

Professional AV SolutionsNRGenceTM

Energy Intelligence Solutions Consumer Electronic Solutions

KVM Switches

Cable KVM

DesktopKVM

RackKVM

LCDKVM/Console

Secure KVM

KVM Extenders

ComputerSharingDevices

Thunderbolt&USB

DataCommunications

Over IP Solutions

ManagementSoftware

KVM over IP Switch

KVM over IP Extender

Serial Console Server

KVM Switches

Matrix KVM

Cat 5 KVM

DualRailLCDKVM

Control System

Modular Matrix Solutions

MediaDistributionSolutions

Video Matrix Solutions

Video Matrix Switches

Video Switches

Video Splitters

Video Extenders

Video Converters

GreenDataCenter

MeteredRackPDU

SwitchedRackPDU

EnergyIntelligencePDU

DCIMSoftware/WebGUI

Power Management

Cooling Management

Space Management

AV&DigitalHome

Computer Accessories

Mobility

Networking

KVM&KVMP

Note: IOGEAR brand is only sold in North America, South America, and other specifiedcountries.

ATEN’sAltusenTMITsysteminfrastructureaccess management solution provides connection and control abilities to SMB and large enterprise customers in order toallowusers toeffectivelymanage ITequipment at any place worldwide.

ATEN’sVanCrystTMproA/Vsolutionprovidessignal management system control ability, and canbe installed in homeandproA/V equipment, which are also widely used in companies, education, government, hospitals, and home theater environments, etc.

NRGenceTMGreenEnergyseriesofproductsaredesignedbyATENfor informationcenters,andthe products provide energy-saving hardware andsoftwaresolutionsequippedwithsensors.Oneof theseriesofsmartpowerandcoolingdistribution devices is able to provide real-timeenergymanagement andperformanceindicators at local and remote sites.

IOGEARTMistheconsumerelectronicproductbrandofATEN Group. Over the past years, it has achieved an outstanding sales record and high reputation in the U.S. market.DiverseintegratedconsumerelectronicsandITproductsareprovidedforselection,whicharesuitableforhome,office,andmobileapplications. Inaddition,theproductscanbe linkedeasily inorderto integratetechnology into daily lives, thereby sharing resources effectively.


23

Competitive Advantages

1. OutstandingR&D team, continuous technologybreakthrough,and innovativeresearcharerelativeadvantagestoamarketleader.

2. Provide comprehensive remote management solutions with complete high, medium, and low level ofproducts, aswell as equippedwith the customizedproductcapabilityforproductsofsmallquantityandgreatdiversity, therebysatisfyingthedemandsofdifferentcustomers(markets).

3. Equippedwith international salesandmarketingprofessionalsaswellasglobalmarketingandsalesplanningwithcompletelocalizeddistributionchannelsinordertoestablishfastmarketresponsemechanisms.

4. Own-brand management, products with high quality, reliability, and stability to gain marketrecognition.

5. Worldwidepatentplanningagainstcounterfeitproductsandtoprovideintellectualproperty rights.

6. LeadingcompanyforKVMproducts,withmarketleadingposition.7. UseAVmeets IT integratedsolutions tocomplywith thedemandsofglobal IT

managementandtheprofessionalmediarelatedmarket.

R&D Vertical Integration Advantages

ATENhasstaffedapproximately300R&Dengineers inTaiwan,China,andCanada,etc.Throughhighvertical integrationR&Denergyalongwith theemphasisonuserexperience (UX:User Experience)design, the implicit demandsof customers arediscovered in order to create a world-class brand.

Global Patent Planning

UptotheendofMarch2019,statistically,theglobalpatentplanningofATENhasreached753patentapplications,andthenumberofgrantedpatentshas reached592patents.Among the 592 patents already granted and under their protection period, there are 539 invention patents, 32 design patents, and 21 utility model patents. The Company actively invests in and maintains important technology research and development outcomes, which isalsoaneffectiveguaranteeforthecontinuousgrowthoffuturebusiness.

Japan2.70%

South Korea 0.17%

Taiwan 42.40%

China 29.39%

United States22.97%

Europe 0.51%

Germany 1.35%

France0.17%

United Kingdom0.34%

Granted Patent Global Distribution Chart

User-oriented Design

UX

IndustrialDesignMechanicalDe-

sign

Management software

Software

Operating System and Firmware

HardwareDesign

IC/FPGADesign


24

Factors Conducive to Long-Term Development Response Strategies and Opportunities

Disadvantageous Factors to Long-Term Development

1. Withdecadesofdevelopment intheKVMproduct line,ATENbrandreputationhasbeenestablishedintheglobalmarket.

2. Numerous awards received, establishing the international brand position and strengthening brand recognition.

3. Improvetheglobalsalessysteminallmainregionsandthestrategyoflocalizedserviceinordertoestablishanadvantageouscornerstoneforfuturerevenuegrowth.

4. Focusonthenichemarketandcontinuetoexpandthediverseproductapplicationscope,expandfromKVMgraduallytoproA/Vandgreenenergypowermanagementproductlines,inordertoestablishthefoundationforrevenueandprofitgrowth.

5. OutstandinginternalR&Dandproductiontechnologyteamswithextensiveexperience.6. Core technologies include thehigh-end technologiesof chipdesign,hardware,

monitoringsoftware/firmware,medianetworkcommunication,etc.,andpatentsareapplied to protect the intellectual property rights.

7. Managementphilosophyofethicsandhonesty.8. ContinuetoimproveCSR(corporatesocialresponsibility)influence,andstrengthenthe

corporation’spositiveimage.9. Establish harmonious cooperation relationships with suppliers and customer groups

with stable quality. 10. Cultivate and introduce outstanding talents continuously.11. Soundfinancialstructure.1. Differenteconomicgrowthindifferentregions.2. Potentialrisksinexchangeratefluctuation.3. Marketentranceofnewcompetitors.

4. Consumerswithlimitedproductknowledge.5. Counterfeitandillegalproductsdisturbingthemarket.

1. TheglobalplanningstrategyofATENwillnotbeaffectedbyonesinglecountryandmarketfluctuation,suchthatthesystemriskcanbereduced.Inaddition,productsareintroducedintodiverseindustriesandapplicationfieldsinordertodistributetherisksdue to individual industry economic impact as well as to optimize the production-sales management,therebyreducingtheopportunityofidleinventory.

2. Thefinancialdivisionpaysattentiontotheexchangeratefluctuationofeachreceivingcurrencyanddeterminesmarketprice trends inorder toadjustproductprices ina timelymanner. Inaddition, throughtheoperationof financial tools, it isable toeffectivelymitigatetheriskofexportexchangeloss.

3. WithregardtotheincreasingtrendofKVMmedium-andlow-levelmarketcompetitorsinthemarket,theCompanyisabletodemonstrateproductdevelopmentandresearchcapabilitiesinordertocreateproductdifferenceandimproveproductquality,therebyavoidingpricecompetitionwith thecompetitors for thesame levelofproducts. Inaddition,withtheadvantagesofproductrepairefficiencyandcustomerservicequality,theCompany isable toachieveobviousdistinction fromthecompetitorsadoptingthepricereductionstrategyinthemarket.Additionally,wewillalsotakelegalactionsagainstanythirdpartythatinfringesonthecompany’strademarksandpatents,soastoprotectthecompany’srights.

4. Through theestablishmentofproductapplication showrooms inallmajor citiesworldwide, introductionof successful examples in various industries andothermarketing andpromotion techniques, theCompany is able to allowpotentialcustomers, such as system integrators, general enterprises, government agencies, and generalconsumers,etc.tofurtherunderstandtheCompany’sproductsandapplicationscenario,aswellaspromotevariousbenefitsofATEN'sproductseriessatisfyingtheenergy-saving,environmental friendliness,andspace-saving,aswellasperformanceimprovementeffects.

5. Strengthencounterfeitproductinspectionaction,andimplementthoroughactionstoprotectthesalesrightsofpatentedproducts.


25

2.2 Worldwide Presence

Withregardtothethreeaspectsof“Sales”,“R&D”,and“Manufacturing”mostcriticaltothecorporateoperation,ATENsufficientlyutilizesglobalresourcesinordertogainthemostoptimalbenefits.

SalesATENdevelopsglobalnewsitesinastablemanner.Throughtheestablishmentofsalestypebranchcompaniesoroffices,theCompanyisabletodevelopoverseasmarketindepth,toprovide completely local support services and to establish direct communication channels, therebywinningcustomers’ trust.TheCompanyalsoactivelyexpands intopotentialnewemergingmarketsbyestablishing localizedsalessites, includingtheestablishmentofbranchcompaniesandproductapplication showrooms.ATENhasestablished24showrooms worldwide, among which 6 showrooms have been established completely in 2018. Inadditiontothesalesplanning,ATENisalsoactivelyexpandingitsmarket inthetenderprojectmarketalongwiththeimplementationofthe"FromDistributiontoSystemIntegration”marketingstrategy.Thesupportingmanagementwillalsoexpandtheregionalsupplychainnetwork,and increase inventoryturnoverandadjustmentflexibility inordertoenhancetheCompany’scompetitiveness.Inaddition,theCompanygraduallyintroducesaconsistentelectronicmanagementsigningapprovalplatformoftheGroup inall saleslocations, inordertooptimizeprocesses,achieve informationtransparency,and improve

decision-makingqualityandefficiencyaswellastoensurerigorousandcompleteinternalcontrol.

Research and Development (R&D)IntermsofR&D,inadditiontotheTaipeiheadquartersandTainanR&DcenterinTaiwan,theCompanyalsoestablishes twooverseasR&Doffices inCanadaandWuhan,China.With theexpertiseofR&Dtalentsofdifferentcountries, theCompanywitha totalofapproximately300R&DengineersisabletoprovidesufficientR&Denergyfornewproductdevelopment and patent protection.

ManufacturingFurthermore, in termsofmanufacturing, theCompany also effectivelyutilizes thecharacteristicsof thetwomanufacturingsites inTaiwanandChina inorder toallocatehigh-, medium-, and low-end products at appropriate production lines, thereby achieving themostoptimalbenefitsforquality,cost,andefficiency.RegardingthetaxburdenarisingfromthetradewarbetweenChinaandtheU.S.startingin2018,theCompanyisabletoreducetheinfluenceandimpactofsuchtradewartotheminimumthroughtheadjustmentandcontrolofproductioncapacityofdifferentmanufacturingsites.

ATEN’sactiveglobalplanningstrategyhasnotonlyestablishedthefoundationforhighprofit,theCompanyalsobelievesthatitisabletobringadrivingforceforfuturerevenuegrowth.

FromDistributiontoSystemIntegration:Toavoid thefiercecompetition in low-endproducts, theCompany'sproductshavegraduallymoved towardhigh-enddevelopment. The sales channel forhigh-endproductsno longermerely refer to the simpledistributionmodelbutareactivelyheading toward thesalesstrategyof”FromDistribution toSystem Integration”, inorder toseekcooperationwith local system integrators (SI)worldwide,alongwithchannel management and shortening channels.


26

Global Planning Local Development

SOUTH KOREA

HeadquartersTaiwan

FactoryTaiwan FactoryChina Factory

Asia-Pacific RegionTaiwan Branch Japan BranchSouth Korea BranchIndia Office

ChinaChina BranchShanghai OfficeGuangzhou Office

EuropeBelgium BranchUK BranchRussia OfficeTurkey BranchPortland Branch

AmericaCalifornia BranchNew Jersey Branch

OceaniaAustralia Branch

R&D CenterTaiwan R&D Center(New Taipei City, Tainan City)Canada R&D CenterWuhan, China R&D Center


27

2018wasaprosperousyearforthebusinessoperationofATEN.TheannualconsolidatedrevenuereachedtherecordhighoftheCompanyatNT$5.173billion,anincreaseof4.6%overthepreviousyear;grossprofitwasNT$3.044billion,anincreaseof4.1%overthepreviousyear,andthegrossmarginreached58.8%.Forthenetincome,duetothegainfromdisposalofnon-operatingbusiness,theamountofnetincomewasNT$1.588billion,anincreaseof115.1%overthepreviousyear.TheearningspersharewasNT$13.19.Themanagementteamhasbeenabletoachievetheexpectationsoftheshareholdersintermsofthebusinessexpansion,costcontrol,investmentstrategy,andefficiencyimprovement,etc.TheCompanywillcontinuetocreateinvestmentprofitsforshareholdersandisworthyoftheinvestors’trustandreliance.

2.3 Operational Achievements

5,200

4,900

4,300

4,300

4,000

(Million/New Taiwan Dollars)

2014 2015 2016 2017 2018 (Year)

4,887

5,173

4,897 4,935 4,947

[Revenue]

15

10

5

0

(New Taiwan Dollars)

5.90 6.60 6.08

[Earnings per Share]

6.37

13.19

2014 2015 2016 2017 2018 (Year)

100

80

60

40

20

0

(%)

58.8 58.3 60.0 58.859.1

[Gross Profit Margin]

2014 2015 2016 2017 2018 (Year)

25

20

15

10

5

0

(%)

20.718.1 19.0 18.0

16.0

[Operating Profitability]

2014 2015 2016 2017 2018 (Year)

[Return on Equity (ROE)]

40

30

20

10

0

(%)

22.420.3 21.9

38.2

19.9

2014 2015 2016 2017 2018 (Year)


28

2.4 Honors and Recognition (2011-2018)Overthepastyears,intermsofallaspectsofproduct,design,companymanagement,corporatesocialResponsibility,etc.,theCompanyhasbeenabletoobtainrecognitions

withvariousawardsinvariousfields.

Produkt Roku 2017

R

2018

R

2016 2015

R

2017

7

R

8Interbrand

2018 Taiwan Excellence Award

CRN 2018 Tech Innovator Award Finalist

2018 Computex Best Choice Award

Awarded Best Corporate Citizen by the Commonwealth Magazine, ranked “1st” among Medium-sized Enterprises Group in 2018

Received the 2018 German Red Dot Design Award

2018 Best Taiwan Global Brands


2017 Computex Best Choice Award

Awarded Best Corporate Citizen by the Commonwealth Magazine, ranked the “2nd Place” among Medium-sized Enterprises Group in 2017

INTEROP Best of Show Award 2017 Special Prize

INTEROP Best of Show Award 2017 Grand Prize

IBC 2017 Best of Show Awards

IT PRO Corporate Choice 2017

Government Video Product Innovation Award 2017

2017 Best Taiwan Global Brands

Awarded one of the Best Corporate Citizens by the Commonwealth Magazine, ranked the “4th Place” among Medium-sized Enterprises Group


2016 Interop Tokyo Best of Show Award – Special Prize

Received the Best Ranking of A++ for the Information Disclosure Evaluation of TWSE/TPEx Listed Companies

Received the 3rd term of Outstanding Medium-sized Enterprise Award

Received the German Red Dot Design Award Communication Design 2015

Awarded Best Corporate Citizen by the Commonwealth Magazine, ranked “2nd Place” among Medium-sized Enterprises Group

Taiwan Excellence Award


29

2014

Computex d&i Award

R

2012 2011

R

2013

ComputerDIY Best Design

Best Features Award

R

Interbrand “2014 Best Taiwan Global Brands”


Awarded the “Top 10 Outstanding Enterprise of the Year” and “Top 10 Outstanding Innovation and Research” in the 16th Golden Peak Award

Awarded one of the Best Corporate Citizens by the Commonwealth Magazine, ranked “1st” among Medium-sized Enterprises Group

“Corporate Award for Standardization” in the 15th National Standardization Awards

Gold Medal in “Awards for Best Companies to Work For”

Received the Best Ranking of A++ for the Information Disclosure Evaluation of TWSE/TPEx Listed Companies


Computex Best Choice Golden Award

Awarded one of the Best Corporate Citizens by the Commonwealth Magazine, ranked 3rd among Medium-sized Enterprises Group

Russia Technical Perfection Award

Hong Kong PC Station Best Design Award

Russia technokitchen Silver Award

ATEN and the National Taiwan University of Science and Technology together developed the iListen communications software for the deaf, winning the German Red Dot Design Award

Computex Best Choice


ComputerDIY Recommended Purchase

Russia technokitchen Gold Metal

Electronic House Products of the 2011 year awards Gold Winner

Awarded one of the Best Corporate Citizens by the Commonwealth Magazine, ranked the “4th Place” among Medium-sized Enterprises Group

Awarded the Silver Medal Prize for the Invention Award in the 2012 “National Invention and Creation Award”


30

2.5 External Organization Participation

Throughparticipatingextensivelyinthevariousdomesticandinternationalunions,associationsandorganizationsrelatedtotheKVMswitchindustry,theCompanyseekstofurtherstrengthenitstieswiththeindustryandbecomeexposedtothelatesttechniques.Bydoingthese,theCompanyisabletonotonlyenhancethecompetitivenessofitsproductsandexploitindustryinflu-ence,butalsoexpandopportunitiesforformingstrategicalliances,catalyzinggrowthintheCompany’sbusinessandoperations.

Union/Association Name

AppleDeveloperProgram UL

Audinate USB Implementers Forum

Bluetooth SIG VCCI

DigitalContentProtectionLLC(HDCP) VDE

GS1 Taiwan Veri Sign

HDBaseTAlliance VESA

HDMILicensing,LLCTaiwanElectricalandElectronicManufacturer's

Association

KNX Taipei Computer Association

MicrosoftWHQL TheInstituteofInternalAuditors,ROC(Taiwan)

MSDNIndustrialSafetyandHealthAssociationoftheRepublic

ofChina(Taiwan)

PCI-SIG IndustryLiaisonOfficeNationalTaiwanUniversity

RTI-RCI

Corporate Governance3.1 Corporate Governance Structure3.2 Board of Directors3.3 Governance Level Performance Evaluation3.4 Shareholder Rights3.5 Ethics and Integrity

31

3. Corporate Governance

32

Major Topics

Meaning of Major Topics to ATEN and Key Contribution of ATEN to SDGs

Corporate Governance, Ethical Management, and Legal Compliance

“Integrity”isoneofthecorevaluesofATEN.Eachyear,thecompanyorganizesethicsandpragmaticbehaviorsrelatedseminarsorcourses,andtheyarealsolistedasoneoftheessentialcoursesfornewemployeesinordertoensurethatallemployeesareabletounderstandandcomplywiththecodeofconductforintegritybehaviors.Inaddition,forkeydivisions,suchas:Auditing,FinancialandAccounting,InvestorRelationships,andCapitalMarketandtheBoardofDirectorsandSupervisors,internalorexternalcoursesrelatedtocorporategovernancearearrangedannuallyinordertoallowthestafftounderstandtheCompany’sdeterminationintheethicalmanagementandtheconsequencesofviolatingethicalconduct.[CorrespondingtoSDGsSection:4.7]

TheBoardMembersofATENconsistofprofessionalsequippedwithvariousprofessionalknowledgeandskills,andfemaledirectorsaccountfor14%oftheBoardMembers,inresponsetotheissueofgenderequalitydescribedinItem5ofthe17goalsforsustainabledevelopmentproposedbytheUnitedNations.TheaforementioneddiversitypolicyalsodemonstratesthatATENconsistsofprofessionalsequippedwithcontinuouseffortsinseekingthelong-termgoalofsustainable operation.[CorrespondingtoSDGsSection:5.5]

Amongthefourmajorcorporatecorevalues,thefirstvalueis“Integrity”,andregardlessofthestakeholdersfaced,theCompanyalwaysadoptstheprincipleofhonestyandtrustaswellastheimplementationoftransparentcorporategovernance.WiththeapprovaloftheBoardofDirectors,theCompanyhasestablishedtheregulationsof“EthicalManagementPrinciples”,“CodeofEthicalConducts”,“ProcedureforEthicalManagementandGuidelineforConducts”,etc.forthecompliancebythedirectors,supervisors,andemployees.Inaddition,theCompanyalsoestablishesvariouse-mailsaschannelsfordifferentstakeholderstosubmitcomplaints,inlightofestablishingafairandjustinteractiverelationshipbetweenthecorporationandthestakeholders.[CorrespondingtoSDGsSections:16.5,16.6,16.7]


33

Responsible Units

ATEN Corporate Social Responsibility Management Committee - Corporate Governance Group

Management Mechanism

The Company establishes the “Corporate Social Responsibility Management Committee”, and the Chairman acts as the commissioner, amongwhichthehighestsupervisorof the“GeneralAdministrationDivision”actsastheSpokesmanandSeniorAssistantVicePresident,and its“InvestorRelationshipandCapitalMarketDepartment” istheresponsibleunit forhandlingtheroutineaffairsof theBoardofDirectors,Shareholders’Meetings, investor relationships,andothercorporategovernanceaffairs.The“CorporateGovernanceGroup”under the “Corporate Social Responsibility Management Committee” isformedbymembersofthe“InvestorRelationshipandCapitalMarketDepartment”.ThroughthemonthlyCSRGroupmeeting,changestocorporate governance related regulations are discussed and various indicatorrequirementsforcorporategovernanceassessment,aswellasthedifferencestothecurrentexecutionstatusarereviewed,inorderto propose correction and improvement recommendations. In addition, reports are presented in the CSR Management Committee meetings periodically, and resolutions on policies and directions, etc. made in the Committee Meetings are executed accordingly. When it is considered necessary, the resolutions made in the Committee Meetings and major issues related to corporate governance are periodically reported to the BoardofDirectors.Under thesupervisionof theBoardofDirectors,such operation mechanism is able to ensure that the Company is abletocontinuously improveandexcel intherightdirectionfor thecorporategovernanceaspect, inordertosatisfytherequirementsofthecompetentauthorityandtheglobaltrendofcorporategovernance,therebyeffectivelyprotectingtheinterestsofshareholdersandrealizingthecorporatevaluesoffairnessandjustice.

Commitment, Actions, and Goals

Commitment 2018 Execution Item 2018 Execution Outcome Future Goals and Actions

Maintain shareholders’interestsand equal treatment ofshareholders.

Provide both Chinese and English version ofShareholders’Meetinginformationtoshareholders in order to understandthefinancialandnon-financialinformationoftheCompany

1. Publish the Chinese version of information ofthe Shareholders’Meetingearlier than the time-limit specified by the laws, includingmeetinghandbook(regulationsspecifyfor21daysbeforetheShareholders’Meeting,andtheCompanyvoluntarilyprovidesinformation30daysbeforetheShareholders’Meeting),Annual Report (regulations specify for7daysbefore theShareholders’Meeting,and theCompanyvoluntarilyprovides information14daysbeforetheShareholders’Meeting).

2. VoluntarilyproduceanEnglishversionofShareholders’Meeting information, includinganEnglishversionoftheMeetingNotice,MeetingHandbook,MeetingMinutes, and Annual Report.

Provide an English version ofAnnualReportwithinformationingreaterdepthtoallowforeigninvestorstohave a greater understanding ofthefinancialandnon-financialinformationoftheCompany (2020).

Strengthen the structure and operationoftheBoardofDirectors.

DiversityPolicyforBoardofDirectors

1. Periodicallyassesstheindependenceofcertifiedpublicaccounts once annually, and disclose the assessment procedure in the Annual Report.

2. NumberofTrainingHoursCompletedbyDirectorsand Supervisors

1. Establish Audit Committee (2020)

2. EstablishBoardofDirectors’PerformanceAssessment Regulations (2020)

ImproveInformationTransparency

1. DiscloseEnglishinformation.

2. Organize investor conference.

3. Publish 2019 revenue announcement calendar.

1. Release 2019 revenue announcement calendar on the Company's website.

2. SynchronousmaterialinformationinbothChineseand English.

3. DiscloseEnglishversionoftheAnnualConsolidatedFinancial Report.

4. Self-organizedtwoonlineinvestorconferencesessionsin2018,andoneinvitedsecuritiesbrokerconference.

Self-organizeinvestorconferencequarterlytoallowinvestors to understand theoperationstatusoftheCompany periodically (2019).

Accordingtothe20185thtermcorporategovernanceevaluationresult,ATENwasrankedinthetop6%-20%amongpubliclylistedcompanies.TheCompanyhasestablishedstabledevelopmentinvariousaspectsofcorporategovernance,andtheitemsalreadycompleted include:“electronicvoting”,amendmenttotheArticlesof IncorporationoftheCompanytoadoptthe“candidatenominationsystem”foralldirectorsandsupervisors,newlyadded“thethirdindependentdirectors”,establishedthe“supervisor’se-mail”,establishedthe“EthicalManagementandGuidelinesforConduct”,“BoardofDirectorsAssessmentonCPA’s IndependenceandDisclosure in theAnnualReport”,etc. In thefuture, theCompanywill implementenhancedmeasuresforthe“BoardofDirectorsPerformanceSelf-assessment”and“AuditCommittee”inpriority,inordertoachievethecorevaluesoftheCompany.ThemanagementlevelofATENalsobelievesthattheimplementationofcorporategovernanceisnotonlyforprotectionoftheinterestsoftheinvestorsandotherstakeholders,butalsoanecessarymethodtofulfillcorporatesocial responsibility.

Accordingly,ATENwillcontinuetoadoptthemethodsof“establishcommunicationchannelswithstakeholders”,“implementinformationdisclosure”,“strengthenBoardofDirectors functions”,“establish functionalcommittees”,“implementCSRManagementCommittee functions”,“establishcorporateself-discipline regulations”,“construct sound internalcontrolsystem”, etc. in order to strengthen corporate governance.


34

3.1 Corporate Governance Structure

ATENensures theCompany’scompliancewithall regulations through its rigorous internalaudit and internal control systems, and requires its management, overseas subsidiaries, and all employeestoreviewandrepeatedlyexaminetheCompany’scompliancewithregulationsandtheexecutionofthe internalcontrolsystem.Onceanysetbackor irregularityofthe internalcontrol system is detected, the problem will soon be reported and to be addressed and closely monitored by relevant departments until the problem is completely corrected and improved to meetallregulationsandlaws.AftertheAuditingDepartmentcollectsthereviewreportsforalldepartments,theexecutivesfromtheDepartmentwillreporttoallsupervisorsregardingthesereviews and attend board meetings to present the reports.

Corporate Social Responsibility Management Committee

Shareholders' Meeting

Board of DirectorsChairman of the Board

General Manager

Operations Team

Remuneration Committee

Office of Auditing

Implement corporate

social responsibility

Maintain shareholders’ interests and

equal treatment of shareholders.

Strengthen the structure and operation of the Board of

Directors.

To enhance information

transparency.

ATEN’s Corporate Governance


35

Concrete Recent Actions Taken to Promote Corporate Governance are as follow:

Category SpecificAchievements

Maintainshareholders’interestsandequaltreatmentofshareholders.

� VoluntarilypreparedanEnglishversionoftheShareholders’MeetingNotice,MeetingHandbook,MeetingMinutes,AnnualReport,anduploadedthemontotheMarketObservationPostSystem(MOPS)andtheCompany'swebsiteforinvestors’reference.

� Inthe2017OrdinaryShareholders’Meeting,adoptedtheelectronicvoting. � Inthe2017Shareholders’Meeting,approvedtheamendmenttotheArticlesofIncorporationoftheCompany,andfullyadoptedthecandidatenominationsystemfordirectorandsupervisorelections.

� ProposalsofShareholders’Meetingadoptedthevotingforeachresolutiononebyone,andtheresultofassent,dissent,andabandonmentfromshareholdersineachproposalwereinputintheMOPS and recorded in the Meeting Minutes.

� TheCompany’swebsitedisclosestheinventorrelationshipcontactwindowtoprovideresponsesandhandlevariousinvestors’recommendationsandquestions.PleaserefertotheInvestorRelationsoftheCompany'swebsite.http://www.aten.com/tw/zh/aten-info/investor-relations/person-to-contact/

Strengthen the structure and operation oftheBoardofDirectors.

� PeriodicallyassessedtheindependenceoftheCPAonceannuallytoconfirmthatthereisnosituationwheretheCPAhasfinancialinterestwiththeCompanyortheindependenceisaffectedbythebusinessrelationship.Therelevant2018CPA'sIndependenceAssessmentReportalreadyapprovedintheBoardofDirectors’MeetingonMarch12,2019.

� Directorsandsupervisorscompletedthenumberofhoursoftrainingspecifiedinthe“DirectionsfortheImplementationofContinuingEducationforDirectorsandSupervisorsofTWSEListedandTPEx Listed Companies”.

Toenhanceinformationtransparency.

� Focusedontheshareholders’righttoknow,andinthe20185thtermcorporategovernanceevaluationresult,theCompanywasranked6%-20%amongpubliclylistedcompanies. � PublishedtherevenueannouncementcalendarontheCompany’swebsitetoallowinvestorstounderstandthemonthlyrevenueannouncementschedule.PleaserefertotheInvestorRelationsofthe Company's website.https://www.aten.com/tw/zh/aten-info/investor-relations/financial-information/

� Self-organizedtwoonlineinvestorconferencesessionsin2018,andoneinvitedsecuritiesbrokerconference.RelevantinformationandChinese/EnglishversionsofpresentationdocumentsalreadyuploadedontoMOPSandtheCompany'swebsite.PleaserefertotheInvestorRelationsontheCompany'swebsite.https://www.aten.com/tw/zh/aten-info/investor-relations/investor-event/

� EstablishedanEnglishversionoftheCompany'swebsitetoprovidevariousinformationoftheCompanytoforeigninvestors.Pleaserefertothefollowinglink.http://www.aten.com/global/en/aten-info/investor-relations/corporate-governance/company-structure-and-responsibilities/

Implement corporate social responsibility

� StartingfromtheCorporateSocialResponsibilityReportin2015,theCompanyhasappointedathirdpartyauthenticationinstitutiontoperformreviewandtoissueopinionsonthe“materiality”,“responsiveness”,and“inclusiveness”oftheReportaccordingtotheAA1000ASStandard,andtoissueanindependentguaranteeopinionstatement.Forthe2018CorporateSocialResponsibilityReport,theCompanyadoptedthelatestGRIStandardsforthepreparationoftheReport,andalsoadoptedthelatestguaranteestandardaswellasappointedathirdpartyverificationinstitutiontoperforminspection.

� In2016,theCompanyestablishedthe“CorporateSocialResponsibilityBestPracticePrinciples”whichbecameofficiallyeffectiveaftertheapprovaloftheBoardofDirectors,andtheywerealsouploadedontoMOPSandtheCompany'swebsitetoprovidereferencetothestakeholders.PleaserefertotheInvestorRelationsontheCompany'swebsite.http://www.aten.com/tw/zh/aten-info/investor-relations/corporate-governance/company-rules/

� Established“ProceduresforEthicalManagementandGuidelinesforConduct”toregulatethecomplaintsystemforillegalandunethicalactionsofinternalandexternalpersonneloftheCompany,whichbecameofficiallyeffectiveaftertheapprovaloftheBoardofDirectors,andwasalsouploadedontoMOPSandtheCompany'swebsitetoprovidereferencetothestakeholders.Pleasereferto the Investor Relations on the Company's website.http://www.aten.com/tw/zh/aten-info/investor-relations/corporate-governance/company-rules/

� EstablishedthecontactwindowforvariousstakeholdersontheCompany'swebsiteinordertoprovideacommunicationplatform.Pleaserefertothefollowinglink. http://www.aten.com/tw/zh/aten-info/csr/page-stakeholders/

� Establishedvariouse-mailaddressesontheCompany'swebsiteinordertoprovidecomplaintchannelsfordifferentstakeholders,including:“Supervisor’sE-mail”[email protected].


36

3.2 Board of DirectorsATEN'sBoardofDirectorshas7directorsand3supervisors,withaetermofofficeof3years,wherein3directorsare independentdirectors.Thedutiesof theBoardofDirectors includetheassessmentofCompany'soperationstrategiesand importantbusiness financialaffairs, inorder toensuretheappropriatenessofthefinancialreportsandtomaximizetheinterestsofshareholders.TostrengthenthefunctionsoftheBoardofDirectors,inthe2017OrdinaryShareholders’Meeting,ATENperformedelectionofnewdirectorsand supervisorsandnewlyadded the third independentdirectors. Inaddition,insuchOrdinaryShareholders’Meeting,theamendmenttotheArticlesofIncorporationofthe Company was approved, in which the candidate nomination system was approved and adopted completelyfortheelectionsofdirectorsandsupervisors.

TheBoardofDirectors’Meeting isconvenedat leastoncequarterly. In2018,atotalof6BoardofDirectors’Meetingswereconvened.DuringtheoperationoftheBoardofDirectors’Meeting, inthecaseofconflictof interest, thedirector is requiredtorecusehimselforherself.AccordingtoArticle16ofthe“RulesofProceduresforBoardofDirectorsMeetings”oftheCompany:“Ifadirectorora juristic person that the director represents is an interested party in relation to an agenda item, the directorshallstatetheimportantaspectsoftheinterestedpartyrelationshipattherespectivemeeting.Whentherelationship is likely toprejudice the interestof thisCorporation, thatdirectormaynotparticipate indiscussionorvotingonthatagenda itemandshall recusehimselforherself fromthediscussionorthevotingontheitem,andmaynotexercisevotingrightsasproxyforanotherdirector”.

AccordingtoArticle20of the“CorporateGovernanceBestPracticePrinciples”of theCompany,itspecifiesthattheBoardMembersshallbediverse,anddirectorsshallbeequippedwithdifferentprofessional backgrounds, genders, or fields ofwork.Allmembers shall alsohavedifferentprofessionalbackgrounds in finance,accounting, industryknowledge,etc.ThecurrentBoardofDirectorsoftheCompanyconsistsof7directors, including4directorsand3 independentdirectors,and the independentdirectorsaccount for43%.Femaledirectorsaccount for14%,6directorsareover theageof50,and1director isagedbetween30-50.Directorsequippedwith industryknowledge,businessmanagement,operation judgment,and internationalmarketview includetheChairman,KevinChen,ViceChairman,Shang-JenChen,DirectorNicholasLin,DirectorShu-ShanLin;IndependentDirectorWei-JenChuistheCPAandHonoraryDirectorofCandorTaiwanCPAs,equippedwithaccountingprofessionalbackground; IndependentDirector,Chung-JenChen isadistinguishedprofessorattheDepartmentofBusinessAdministration,NationalTaiwanUniversity,DirectoroftheTechnologyPolicyand IndustrialDevelopmentResearchCenter,NationalTaiwanUniversity,andVicePresidentoftheResearchandDevelopmentDepartmentofNationalTaiwanUniversity; IndependentDirector,Chun-ChungChen is theassociateprofessorat theDepartmentof InternationalBusiness,NationalTaiwanUniversity.Allofthedirectorsareequippedwithprofessionalbackgroundsinbusinessandfinance.TheBoardMembersofATENconsistofprofessionalsequippedwithvariousprofessional

knowledgeandskills,andthecorporatedirector representativeShu-ShanLin isa female,which isalso inresponsetothe issueofgenderequalitydescribed in Item5ofthe17goalsforsustainabledevelopmentproposedbytheUnitedNations.TheaforementioneddiversitypolicyalsodemonstratesATEN'ssearchforprofessionalsequippedwithcontinuouseffort inseekingthe long-termgoalofsustainable operation.

Board Member Age and Gender Distribution

Age Range Gender

Under 30 Years Old (inclusive)

Above 30 Years Old - Under 50 years old

(inclusive)

Above 50 Years Old Male Female

Director - 1 6 6 1

Supervisor - - 3 2 1

Professional Qualifications of the Board of Directors:

AllDirectorshavetheoperating judgment,accountingandfinanceanalysisability,operationalandmanagementability,and leadership required to fulfill theirduties.Allhaveat least fiveyearsofexperienceinbusiness,law,finance,accounting,orotherfieldsrequiredbytheCompany.Forrelevantdescriptions,pleaserefertoChapter3oftheAnnualReport.

ToallowtheBoardMembers toeffectivelyexercise their functions, theCompanyalsoencouragesdirectorsof theCompany tocontinue their trainingandeducation inorder toobtain the latestknowledgeandtoimprovetheirresponsiveabilities.AlloftheBoardMembersofATENhavereachedthe statutory requirednumberofhoursof training,and theattendance statusofdirectorsandsupervisorsattendingtheBoardofDirectorsMeetingsaswellasthetrainingstatusofdirectorsandsupervisorsarealsodisclosedinthe“MOPS”inordertoprovidereferencestoallstakeholders.


37

3.3 Governance Level Performance EvaluationAccordingtotheArticlesofIncorporationoftheCompany,afterreservingandmakinguptheaccumu-latedlossfromtheincomebeforetaxpriortothedeductionofthedistributionofremunerationofem-ployeesandtheremunerationofdirectors/supervisors,ifthereisanyremainingamount,10%to16%ofremunerationtoemployeesandnolessthan2%ofremunerationtodirectors/supervisorsshallbeappropriated.Thedeterminationofthedistributionratiofortheremunerationofemployees,remuner-ationofdirectors/supervisors,andtheremunerationofemployeesintheformofsharesorcash,shallbedeterminedbasedontheresolutionoftheBoardofDirectors’Meetingattendedbymorethan2/3ofthedirectorsandtheconsentofamajorityoftheattendingdirectors,andshallbereportedintheShareholders’Meeting.

ATENestablishedaRemunerationCommitteewith3members,including1IndependentDirector,ac-cordingtotheresolutionoftheBoardofDirectors’MeetingonDecember20,2011.Thedutiesincludetheestablishmentandperiodicalreviewoftheannualandlong-termperformancegoalsofdirectors,supervisors,andmanagerialofficersaswellasthepolicy,system,standards,andstructureofthesalaryandremuneration.Periodicallyevaluatetheperformancegoalachievementstatusofthedirectors,su-pervisors,andmanagerialofficersoftheCompany,andspecifytheindividualsalaryandrenumerationcontentandvalue.BeforetheendofJune2019,morethanhalfoftheMembersbeingtakenbyinde-pendent directors will be completed.

Therenumerationofdirectorsandsupervisors includethetravelallowanceandtheremunerationofearnings distribution. The travel allowance is based on the general industrial standard, and the earn-ingsdistributionamountisbasedontheArticlesofIncorporationoftheCompany,whichareproposedbytheRemunerationCommitteeandapprovedbytheBoardofDirector’sMeetingresolution,followedbyreportingtotheShareholders’Meetingforapprovalonthepaymentthereof.Theremunerationofmanagerialofficersincludesthesalary,bonus,andemployeebonusfromearningsdistribution,andthepaymentstandardishandledaccordingtotheEmployeeSalaryManagementRegulationsoftheCom-pany.

TermofOfficeoftheCurrentSessionofRemunerationCommitteeMembers:June15,2017toJune14,2020.ForthetwoMeetingsheldinthemostrecentyear,theattendancedetailsoftheCommitteeMembersisasfollows:

NameNumber of Actual

AttendancesNumber of proxy

attendanceRatio of Actual Attendance (%)

Wei-Jen Chu 2 0 100%

Chen-En Ko 2 0 100%

Yen-Jung Li 2 0 100%


38

3.4 Shareholder RightsATEN holds both Ordinary and Extraordinary Shareholders' Meetings. The Ordinary Shareholder's Meeting isheldonceannuallyand is convenedby theBoardofDirectorswithin6monthsaftertheendofeachfiscalyear inaccordancewiththe law.TheExtraordinaryShareholders’Meeting isconvened whenever necessary according to relevant laws. Shareholders' Meetings are held regularly everyyear,inordertoreportontheCompany'soperationalandfinancialsituation.ShareholderscanalsosubmitawrittenrequesttoATENforaShareholders'Meeting.BeforenotifyingshareholdersofthedateoftheMeeting,ATENwillnotifythesubmittingshareholderoftheresultoftheirrequestandconvenetheMeetingasrequiredbyCompanyregulations.InthecaseofaproposalnotbeingaddedtotheShareholders'Meetingagenda,theBoardshouldexplainthereasonforthistothesubmittingshareholder.

TheCompanyupholds the corporate core valuesof “Integrity”, “Caring”,“Ambition”, and“Novelty”tocareforallstakeholders.Inadditiontoemployees,customers,suppliers,andcommunityorganizations, theCompanyalsoemphasizes the interestsof shareholders.Regarding the recentdividendissuancepolicyofATEN,exceptforfactorsofregulatoryrequirementssuchthataportionisreservedwithoutissuance,therestoftheamountisdistributedtotheshareholdersinordertoallowshareholderstoenjoytheprofitoutcomeoftheCompanytogether. In2018,thetotalearningspersharewasNT$13.19,includingNT$6.43fromtheprinciplebusinessandNT$6.76fromthedisposalofnon-operatingbusiness investments.Theprinciplebusinessalsomaintaineda90%highdividendissuancepolicy.Forthenon-operationbenefits, inadditiontothedistributiontotheshareholders,aportionwasalsoreservedtobeusedforthefundsourceforfuturere-investmentormerger.

　 2014 2015 2016 2017 2018

Earnings per Share (NT$)* 6.37 5.9 6.6 6.08 13.19

Shareholders’Divi-dends(NT$) 5.7 5.2 5.8 5.5 8.0

CashDividends(NT$) 5.7 5.2 5.8 5.5 8.0

StockDividends(NT$) 0 0 0 0 0

Dividendpayoutratio 89% 88% 88% 90% 61%

Note:Dividendallocationfor2018willbedecidedatthe2019Shareholders'Meeting.

UpholdstheprincipleofadequatedisclosureforTWSE/TPExlistedcompanies.TheCompanynotonlydiscloses informationontheMarketObservationPostSystemas requiredby regulations,butalsopublicizesdifferent typesofoperationalandfinancial informationthroughtheCompany’sAnnualReportsandCompanywebsitesoastoenablethe investorstoobtainan in-depthunderstandingoftheCompany’sbusinessoperations.Additionally,theCompanyalsosetsupaspokespersonsystemandanInvestorsRelationsDepartmenttospecificallyaddressthesuggestionsandconcernsofshareholders.Shareholders can provide various opinions through the e-mail at [email protected]. Relevant contact informationisalsodisclosedattheCompany'swebsiteforstakeholders’inquires.

3.5 Ethics and IntegrityTo implement the corporate social responsibility and to achieve economic, environmental, and social advancement, inordertoachievethegoalofsustainabledevelopment, theCompanyapprovedtheestablishmentoftheCompany’s“CorporateSocialResponsibilityBestPracticePrinciples”intheBoardofDirectors’MeetinginNovember2016,inordertostrengthentheimplementationofthecorporatesocialresponsibilityandtoincorporateitintothemanagementoperationoftheCompany.

Inaddition, theCompanyalsodesignates theOfficeofGeneralMangeras thededicatedunit toperformcorporateethicalmanagementrelatedpromotionandexecutionoperationaccordingtothe“ProceduresforEthicalManagementandGuidelinesforConduct”,andtoreporttheexecutionstatustotheBoardofDirectorsperiodicallyonayearlybasis.Accordingtothe“CorporateGovernanceBestPracticePrinciples”and“ProceduresforEthicalManagementandGuidelinesforConduct”,etc.,theCompany establishes various e-mail addresses on the Company's website as the complaint channels fordifferentstakeholders,suchas:“Supervisor’sE-mail”toallowsupervisorstodiscoveranypossibleflaws intheCompany inatimelymanner,andtoestablishcommunicationchannelsforemployees,shareholders,andotherstakeholderswiththesupervisors,andthreesupervisorsareabletoreceivee-mails. In2018, therewasnooccurrenceofevents relatedtocorruption. Inaddition, toprovidecommunicationchannelsfordifferentstakeholderstocontacttheCompany,[email protected],andthePresidentOfficeisabletoreceivevariousopinionsontheCompanyfromdifferentsectors.Furthermore,theCompanyalsoentrustsotherexternalindependentinstitution, such as the EAP employee assistant solution contracting institution, to provide another communicationchannel foremployeesand relativesof theCompany tocontact theCompany.RelevantmattersarehandledbythededicatedunitoftheOfficeofGeneralMangeroftheCompanyalong with the Global Human Resources Center according to procedures.

Employee Care4.1 Diversity and Equal Opportunity


4.3 Friendly Workplace and Sports Encouragement

39

4. Employee Care

40

Major Topics

EmployeeWelfare

Meaning of major topics to ATEN and key contribution of ATEN to SDGs

WehopetoallowthegrowthoftheCompanytoexcelalongwiththedevelopmentofemployeeswhilecreatingafriendlyworkplacecapableofachievingemployees’physicalandmentalhealthaswellasworkandlifebalance.

Eachyear,theCompanyparticipatesintheindustrialsalarysurveytoensurethattheremunerationandwelfarecontinuetomaintain

competitivenessinthetalentmarket.Undertheperformancerewardsystemencouragingachievements,theCompanyexpectstogrow

together with the employees in order to achieve employment and economic growth.

[CorrespondingtoSDGsSection:8.5]

TheCompanyemphasizesparticularlyonthephysicalandmentalhealthofemployees.Nutritionistsareavailabletomonitorthedailymeals,

andphysiciansarestationedonsiteforserviceonaweeklybasis,andemployeesareprovidedwithaphysicalexaminationannually.Forany

issuesatworkorinlife,employeescanalsocontacttheEAPsdirectlineforconsultation.


Wewelcomenewmembersfromsociety,andregardlessofiftheyarenewemployeesorexistingemployees,theyareabletoreceive

systematicandplannedtrainingthroughphysicalandonlinelearning.ThroughATEN’sprivateinternalinstructorplatform,internal

knowledgecanbeexchangedandsharedmoreeffectively.


4. Employee Care

41

Responsible Units

ATEN Corporate Social Responsibility Management Committee - Employee Care Group


1. Personaldevelopmentplanandperformancemanagementsystemfordifferenttalentsandpositions,inconjunctionwithanextremelycompetitiverewarddesign.

2. Trainingmechanismforstrategyfocusandlearningwithpracticeinconjunction.Wewelcomenewmembersfromsocietytojointhebullpenprojectfortraining.

3. Createafriendlyworkplacefornewemployees,andwelfaresuperiortotheregulations,alongwithemployeerelationshipprojectevents.


Commitment 2018 Execution item 2018 Execution outcome Future Goals and Actions

Company’sGrowthTogetherWithEmployees’

Development

[Bullpen Project]PM, Pre-Sales, FAE technical talent cultivation plan.

Inthe12-weektraining,completedatotalof156coursesand109hoursofcourserecordingbroadcast.Atotalof6technicaltrainees.MAMTsuccessfulallocationtodifferentunitsforexpertisecontribution.

The Company will continue to implement the bullpen projectinordertocultivateagreaternumberoftraineesbeusedasanimportantfactorforpromotingtheoperationalgrowth.

[ATEN Private X Human Resource e-School]Physicalcoursebenefitspreadthroughdigitalcourses.

Opened7internalinstructorlecturecourses,withanaveragesatisfactionscoreof93.96.Atotalof503traineesparticipatedinthecourse,andtheaccumulated total training hours reached 1003 hours. Five appropriate courses were selected and converted into digital courses in order to expand the learning outcome.

The Company will continue to discover appropriate internal instructorsforinternalknowledgeandexperiencesharingaswellastopassonknowledgeandexperienceviathedigitalmethod.Sixcoursesareusedasthegoalforthedigitallearning.

Afriendlyworkplaceforphysical and mental health

as well as a balance between workandlife.

[ATENer Freshmen, Monopoly]TheguidanceforfreshmenisintegratedintotheMonopolygameconceptalongwithdedicatedmentorsforfreshmeninordertoallowthemtobecomefamiliarwiththeworkintheCompany.

In2018,atotalof159newemployeeswerehired,andthenumberofresignationsinthesameyearwas30employees,withatotalof129freshmensuccessfullyretainingtheirjobs.Thefreshmanretentionratewas81.1%(129/159).

The Company will continue to strengthen the ATENer freshmantrainingandmentorprojectinordertocreateafriendlyworkplaceandenvironment.Maintainthefreshmanretention rate above 80%.

[Health and Lohas Plan]Health Related Courses and Seminars

CooperatedwiththeOccupationalSafetyandHealthOffice.NutritionistsandphysiciansofdifferentmedicalhospitalswereinvitedtotheCompany to provide lectures on health and lohas related topics. A total of6seminarswereheld,atotalof581peopleattended,withanaveragesatisfactionscoreof90.1.

The Company will continue to promote and encourage employees’routineexercise,anditisexpectedthatin2019,theCompanywillorganizetheeventoftheweightreductioncontest,inordertoimprovethehealthofemployees.

[iSportsEnterpriseCertification]Apply with the Sports Administration, Ministry ofEducationandGlobalViewsMagazine.Jointly organized the iSports Enterprise Certification.

SuccessfullycompletedtheiSportsEnterpriseCertification(validperiodoftwoyears),andparticipatedintheawardceremonyonOctober16,2018, as well as committed to continue to promote sports culture and encourageemployees’sports,etc.activities.

The Company will continue to cooperate closely with the Global Views Magazine to organize at least one sports related seminar.

4. Employee Care

42

4.1 Diversity and Equal Opportunity Employee Type Age Number of male

employees

Number of female employees

Total Ratio

New Employees

<30 years old 38 18 56 4.64%

31-50 years old 61 39 100 9.56%

>51 years old 3 0 3 2.32%

R a t i o o f N e wEmployees (NumberofNewEmployeesoftheYear/CurrentEmployeeNumberonDecember31,2018)=23.0%

R e s i g n e d Employees

<30 years old 15 6 21 11.59%

31-50 years old 47 44 91 65.22%

>51 years old 8 3 11 6.67%

RatioofResignedEmployees

(NumberofResignedEmployeesoftheYear/CurrentEmployeeNumberonDecember31,2018)=17.8%

MonthlyResignationRate=AnnualResignationRate/12=1.5%

Weencouragethechildbirthofemployees,andprovideachildbirthsubsidyofNT$60,000foreachbirthofaninfant.Forparentswithnewborns,theCompanyalsoprovidestheinfantfivelittlegoldenaccessoriesatamarketvalueofNT$3,000asagifttotheparentsalongwith littleredenvelopecashofNT$1,200fromtheWelfareCommittee.InsidetheCompany, itprovidesawarmandcomfortablespecializedbreastfeeding(milkcollection)room,andalsosignsacontractwithawell-knownchainkindergarten inordertoallowemployeestoworkwithsecurityandtoarrangechildcareconveniently.Wefurtherprovidepaternity leave (6days) formaleemployees,employeebirthexaminationleave(female:6days,male:2days)superiortotherequirementsspecifiedintheLaborStandardsAct.Inaddition, the Company also appropriates retirement pension, and also provides a complete insurance plan covering relatives and parents in order to provide a comprehensive guarantee and care to employees.

Project DescriptionNumber of male

employees

Number of female employees

Total

2018 Number of Employees Entitled to Maternity Leave Without Pay 44 22 66

2018 Number of EmployeesApplying forMaternity LeaveWithout Pay 0 4 4

2018NumberofEmployeesExpectedtoReturntoWorkAfterMaternity Leave (A) 0 4 4

2018NumberofEmployeesActuallyReturningtoWorkAfterMaternity Leave (B) 0 3 3

JobResumingRate(B/A) 0% 75% 75%

2017NumberofEmployeesReturnedtoWorkAfterMaternityLeave (C) 0 2 2

2017NumberofEmployeesReturnedtoWorkAfterMaternityLeaveandContinuingtobeEmployedAfterOneYear(D) 0 1 1

RetentionRate(D/C) 0% 50% 50%

In2018,theCompanyalsocooperatedwiththeNewTaipeiCitygovernment inthecooperationofthe“GenderEquality,JobEquality”genderqualitypromotionseminar,andfurtherupdatedthe“WorkplaceSexualHarassmentPreventionandDisciplinaryRegulations”inordertostrengthentheimplementationofsuchconcepts.

ATENalwaystreatsemployeesasfamilymembers,andfurtherbelievesthathighqualityproductsandservicescomefromemployeeswiththegreatestjoy.AstheCompanyisinits40thyear,wefurtherexpressourpassioninseekingexcellencewiththesloganof“PassionforExcellence”,hopingthatallemployeesworldwideareabletocontinuetoupholdthespiritofseekingexcellenceandtohavepassionintheirwork.Withthecorporatespiritof“caring”,theCompanyprovidesequaltreatmenttoemploymentopportunities.Wealsoadoptthecorporateconceptof“novelty”toprovideequalperformanceremunerationtreatment;withthecorporateprincipleof“integrity”,weestablishstablebusinessoperation;finally,weadoptthecorporatecultureof“ambition”toachievestrongresilienceandpassion.

Human Resources and StructureAccordingtothecalculationconductedonDecember31,2018,thenumberofemployees intheregionofTaiwanis690employees,andalloftheemployeesarefull-timeemployeeswithnopart-timeemployees(maleemployeesaccount for57.1%; femaleemployeesaccount for42.9%).Amongwhich, thereare98 seniormanagementsupervisors (male supervisorsaccount for75.5%; female supervisorsaccount for24.5%),478 independentprofessionalpersonnel,114directtechnicalpersonnel,withtheaverageageof38.76yearsold,averageyearsofservicesof7.91years,andemployeeswithaneducationalbackgroundabovecollegeanduniversityaccountfor83.1%.Inaddition,thenumberofphysicallyandmentallydisabledis8employees,whichis1.33timeshigherthanthe regulatory requirements.

Employee Type Age Number of Male Employees

Number of Female Employees

Total Ratio

DirectEmployees

<30 Years Old 1 31 32 4.64%

31-50 Years Old 8 58 66 9.56%

>51 Years Old 2 14 16 2.32%

DirectEmployeesTotal 11 103 114 16.52%

Indirect Employees

<30 years old 53 27 80 11.59%

31-50 years old 308 142 450 65.22%

>51 years old 22 24 46 6.67%

Indirect Employees Total 383 193 576 83.48

Overall Total 394 296 690 100.00%

Equal Employment and Care

Thetalentrecruitchannelof theCompany includes:onlinerecruiting,newspapers,magazinesandmedia,schoolrecruiting,manpoweragents, jobfair, internalemployeereferrals,andemployee internal transfermethods,etc.Withthethreemainprinciplesof“legalemployment,discriminationprohibition,andequalopportunity”, in2018,theCompanyrecruitedatotalof159newemployees,amongwhichtherewere57femaleemployeesaccountingfor35.9%,and102maleemployeesaccountingfor64.2%;23directpersonnelaccountedfor14.5%,136indirectemployeesaccountedfor85.5%. Inthesameyear, therewere123employeesthatresignedfromtheCompany,amongwhichtherewere53femaleemployeesaccountingfor43.1%and70maleemployeesaccountingfor56.9%.The annual resignation rate was 17.8%, and the monthly average resignation rate was 1.5%. From the data over the past three years, the monthly average resignation rate was between 1-2%.

4. Employee Care

43


In2018,thetotalnumberoftraininghoursoftrainingcoursesorganizedbyATENintheregionofTaiwan reached 26,143 hours, and the annual average training hours per person was 37.9 hours, anincreaseof68.44%fromtheaveragetraininghoursof22.5hoursinthelastyear.Amongwhich,thetotalnumberoftraininghoursforprofessionalskillswas21,784hours,asignificant increaseof137.5%fromthe9,171hours inthe lastyear.Thetotalnumberoftraininghoursforprofessionalskillsaccountedfor83.3%oftheentireyear,andthenumberofcoursesfurtherreached713courses(including45digitalcourses),accountingfor94.2%ofthetotalnumberofcoursesthroughouttheyear.ItcanbeseenthattheCompanyemphasizesgreatlythecultivationofprofessionalskills,andtheCompanyalsoachievesthesharingandpassingonofexperienceandknowledgeviainternaltrainings.

Training Type Training Time Total hours of trainingTotal number of people

receiving training

ManagementSkills 9 823 173

ProfessionalSkills 668 16295 9558

CoreSkills 13 1338 565

Personal Growth 12 1278 759

New Employee Training 2 343 59

DigitalCourse 53 6066 2232

Total 757 26143 13346

Employee Type Total hours of training No. Average Training Hours

DirectEmployees 1243 120 10.4

Indirect Employees 24900 570 43.7

Total 26143 690 37.9

Employee Type Total hours of training No. Average training hours

Male Employees 17640 394 44.8

Female Employees 8503 296 28.7

Total 26143 690 37.9

Periodic Evaluation and Communication

TheCompany periodically performs twoperformance evaluations annually, and provides acommunicationplatformforsupervisorsandemployeesone-on-onediscussionofjobdutyperformanceandestablishmentofafuturedevelopmentplan.Theevaluationresultisalsousedasareferenceforfuture jobpositionchanges,salaryadjustment,andbonus issuance. Inaddition, tostrengthentheCompany’sdetermination inthepromotionofCSR inatop-downmatter,theCompanyencouragesemployeestoparticipateinCSRactivities,andCSRisparticularlylistedintotheperformanceevaluationindicators.In 2018, the number ofmale/female anddirect/indirect employees actually performing theperformanceevaluation,deductingthechangefactorsofnotcompletingtheprobationperiod,leavewithoutpay,foreignworkers,etc.,thecompletionrateofperformanceevaluation(actualnumberofemployeesunderevaluation/numberofemployeesrequiredforevaluation)is100%.

2018 Gender Direct employees Indirect employees Total

FirstHalfoftheYearMale 10 327 337

Female 47 179 226

SecondHalfoftheYear

Male 11 354 365

Female 50 183 233

In addition, to promoteworkplaceharmony, theCompany alsoperiodically convenes labor-managementmeetingsinordertoperformdiscussiononissuesrelatedtoworkers’interests,andthemeetingminutesofeachmeetingareupdatedintheHumanResourcese-School.TheCompanyalsoadditionallysetupapaidpositionofWelfareCommitteeDirector-Generaltoberesponsibleforthehandlingofemployeewelfarerelatedmattersfulltime.Since2017,theCompanyhasestablishedtheworkplacebullyingcomplaintdirect line#[email protected]. Inthecaseofanyillegalworkplacebullyingactions,employeescanfileacomplaintviathedirectlineore-mail.Currently, there are no complaint cases received.

4. Employee Care

44

Forsupervisorsresponsibleforrecruitment,wealsoestablishthe“required”essentialmanagementcourses annually, including “Employee Management Case Study in Practice and Countermeasures” in combinationwiththeamendedregulationsofthelabor lawandhiringof laborattorneystoprovideenhanced educational promotion. In addition, according to the current challenges and the abilities tobe improvedfortheorganization,theCompanyalsoprovidesrelativelydiverseprofessionalandtrendingseminars,including“BlockChainRevolution-FinTechEra”,“AloTTrends”,“OverviewofBigDataandDataScientist’sLife”,etc.inordertocatchuptotheeraofdigitaltrends.

Accelerated Dual Platform for Knowledge Spreading

In2016, the“ATENPrivateLearningSchool”wasofficiallyestablished. It isaplatformforATEN'sinternalinstructorsandisbasedonthethreeobjectivesinprinciple:internalknowledgecirculationandspreading,creatingalearningtypeoforganizationatmosphere,andcreatingATEN'sinternalinstructorteam,withconsistentdevelopment.In2018,weopenedatotalof7internalinstructorlecturecourses,withanaveragesatisfactionscoreof93.96.Attotalof503traineesparticipatedinthecourse,andtheaccumulatedtotaltraininghoursreached1,003hours.Inaddition,wefurtherselected5appropriatecourses and converted them into digital courses in order to expand the learning outcome.

Friendly Mentor Assistance for New Employees

ToallownewemployeestobecomefamiliarwiththeworkatATENswiftly,weparticularlyplanthe“ATENer,FreshmenMonopoly”.Onthe firstdayofon-boardingatATEN,newemployees receivethe“ATENerBagofTips”,andthebagcontainsamonopolygameinstructioninordertoallownewemployeestofollowthemaptoexploreandtobecomefamiliarwiththecurrentlyexistingprocesses/systems/formsandvariousservicecorrespondingwindowsintheCompany. Inaddition,wealsopairspecializedMentorsbefore theon-boardingofnewemployees inorder toallowthemtohaveasecuredconsultationchannel inthecaseofanyproblemsordoubts.Furthermore,wealsorequestMentorstoprovide2-4weeksofstructuredandsystematiclearningprocessaftertheon-boardingofthenewemployeesandcommunicatewiththenewemployeesonaweeklybasis.Inaddition,Mentorsarealsoprovidedwiththerightsandobligationstoparticipate intheprobationperiodperformanceevaluationofnewemployees.

For all on-boarding new employees, they are required to complete the digital online required courses, including:Companyintroductionandcorevalues,personnelregulationsandwelfaresystem,internalcontrolsystem,qualityandenvironmentalsystem,legalandpatents,informationsecurity,laborsafetyandhealth,assetmanagement,purchaserequisitionsystem,andwelfarecommitteeintroduction.Fromthesurveyof“NewEmployeeAdaptabilityQuestionnaire”,inthecaseofdiscoveringthatthephysicalandmentalstressindexofanemployeeistoogreat,theyaretransferredtoathirdpartyprofessionalpsychologicalconsultationcompanyforanEAP(EmployeeAssistanceProgram).

In2018,atotalof159newemployeeswerehired,andthenumberofresignationsinthesameyearwas 30 employees, among which there were 22 employees who resigned due to incompetency or severance,anda totalof129newemployeessuccessfully retainedtheir jobs.Thenewemployeeretentionratewas81.1%(129/159).

Bullpen Project for Talent CultivationIn2018,forthejobpositionsofessentialtechnicaltalentsofPM,Pre-Sales,FAEetc.,weestablishedthe3-month“BullpenProject”.Basedon theorganization structureof theMajor Leagues,wedistinguishedthescouts, trainingandevaluationteams,andclearlydefined:mechanismsforhowwe train, how to observe, evaluation standard, and pairing distribution; along with the periodic tests everytwoweeks,monthlyoutcomepresentation,evaluationcommittee,etc.,inordertosystematicallyeducateandpassonthe internalprofessionalknowledge/technologies/processes frombeginner toadvancedlevels,aswellasrecordingtheinternalandexternalknowledgethroughcoursesforproperknowledgepassingonandmanagement,whichisatrainingprojectwithmultipleadvantageous.

For thefirst termof thebullpenproject,a totalofeightelite traineeswere recruited.After threemonthsofobservationandevaluation,inconjunctionwithaone-on-onecoachinterview,preferenceapplication,and individualprojectpresentationscore,thereweresixtraineeswhoweresuccessfullypairedanddistributedtothePM,Pre-Sale,andFAEunits.Thisprojectisimportanttothecultivationoftalentsandpromotionofrevenuegrowth.

“Train people well enough so they can leave, treat them well enough so they don’t want to!”

Richard Branson, UK Virgin Group Founder

Forthe internalandexternal trainings,physicalcourses,ordigitalcourses,allofthedigital learningpathsofemployeesofATENarepreserved inthe internaldigital learningplatformofthe“HumanResourcee-School”.In2014,theCompanyintroducedthe“HumanResourcee-School”system.Afterthreeyearsofoperationandstabilitytesting,wehavedecidedtoexpandtheservicetoallsubsidiariesworldwide inconjunctionwith theACS (ATENCertifiedSpecialist)professionalproduct trainingcourseleadbytheGlobalCustomerServiceDivision.Uptotheendof2018,fortheheadquarterandsubsidiariesincludingthefourmainproductlinesof(KVM/ProAV/PDU/ControlSystem),thenumberoftraineesofthecoursehasreached1,589people,andtheoverallsatisfactionscoreofthecourseis87points.

4. Employee Care

45

4.3 Friendly Workplace and Sports Encouragement

Safety Care-free Workplace

Wehaveestablished the“OccupationalSafetyandHealthCommitteeCharter”according to the“OccupationalSafetyandHealthManagementRegulations”,andconvenetheOccupationalSafetyand Health Committee Meeting periodically on a quarterly basis. Presently, there are 14 Committee Members, including5laborrepresentativesaccountingfor35%ofallmembers. IntheMeeting,theOccupationalSafetyandHealthOfficeperiodicallyreportsthelaborsafetyandhealthrelatedindicatorstotheCommitteeMembers,andperformsdiscussionandplanningonpotentialorpossiblesafetyissues,inordertoensurethatallemployeesareabletoworkunderahealthyandsafeenvironment.

OccupationalDisasterType

Gender (Male)

Gender (Female)

NumberofTimes

NumberofDaysLost

All EmployeesTotalNumberofWorkingDays

(D)

All employeesTotal Number ofWorkingHours (H)

CommuteTrafficAcci-dents 2 1 3 1 (Female)

165,485 1,323,880Collision*1+Falling*1 1 1 2 4 (Male)

OccupationalDisasterThousand-People Rate

Numberofpeoplereceivingoccupationaldisasterinsurancecompensationthroughouttheyear/Numberofpeopleofannualaveragelaborinsuranceenrollment×1,000‰ =7.25‰

DisablingInjuryFrequen-cy Rate (FR)

(Totalnumberofinjuriesanddeaths/Totalnumberofworkinghoursofallemployees)106 (calculatedbasedonmillionworkinghours)=3.78

DisablingInjurySeverityRate (SR)

(Totalnumberofdayslost/Totalnumberofworkinghoursofallemployees)106 (calculated basedonmillionworkinghours)=3.78

Presently, therearenocasesof internalemployeessubject tooccupationaldiseasesanddeath inthecourseof jobduties. Inaddition, foroutsourcedsuppliers,contractors,securitiesandcleaningpersonnel,therehavebeennocasesofoccupationalinjuriesanddeathinthecourseofjobduties.

AbsenceRate(calculatedinhours/gender)iscalculatedasfollows:

Gen-der No.

Annual To-tal Working

Hours

Occupa-tional sick-ness leave

Menstrual leave Sick leave

Sick Leave (hospi-taliza-tion)

Total AbsencesNumber of

Hours

Absence Rate

Female 296 584896 89.38333 849.35 4058.65 208 5205.383333 0.89%

Male 394 778544 38 0 2645.017 0 2683.016667 0.34%

Total 690 1363440 127.3833 849.35 6703.667 208 7888.4 0.58%

In2018,ATENreceivedthe2018SportsEnterpriseCertification-inresponseto“EnterpriseiSPORTS,Employee’sEnergyNONSTOP”forthefirsttime.TheCompanyhasalwaysemphasizedthecareofemployees’health. In2012,theCompany invested intheestablishmentofacomprehensivefitnesscenter, includingapooltablearea,readingarea,weighttrainingarea,fitnesstrainingarea,aerobicsclassroom,andsauna,aswellasachangingroomformenandwomen.Subsequently,ayogaclub,boxingaerobicclub,joggingclub,after-workrecreationsportsclub,basketballclub,bakingclub,andthenewlyestablishedfitnessclubwerecreated.Inthefuture,theCompanywillcontinuetoencourageemployee’sregularexerciseandimplementthecorporatesocialresponsibility(CSR)ofemployeecare.

4. Employee Care

46

Employee Activities EAPs Services for Relatives and Spouses

In 2012, the Company introduced the EAP (Employee Assistance Program). Up to the presentday,theprogramhasbeenimplementedforthe6thyear.Lastyear,theprogramservice target expanded to thedirectblood relativesof firstdegreeand spousesofemployees.Thepurpose istobeabletosufficientlyovercomeorhandletheworkor lifeissues facedbyemployees.Fromthepastaccumulatedconsultationrecords, the issuesmostlyconsultedbyemployeesare“psychology”and“law”,andproblemsofmarriedcouple communication, parentingeducation,housepurchase/homedecoration/caraccidents,etc.havebeenproposedforconsultation.

If the issuescausingproblemscannotbeovercome through telephoneconsultation,employeescanalsousetheface-to-faceconsultationserviceprovidedbytheCompanytodealwiththesourceofproblemsmoreprecisely,andprofessionalconsultantsareabletoreduce or resolve the problems and issues. In 2018, there were 21 telephone consultations and6face-to-faceconsultations.

Tocontinuetoprotectthehealthofemployees,in2018,theCompanyparticularlyplannedthe[HealthLohasProgram]andcooperatedwiththeOccupationalSafetyandHealthOfficeto invitenutritionistsorphysiciansofmajormedicalhospitalstotheCompanytoprovidelectures on health lohas related seminars, including the “seeing beauty” eye care seminar, “waist>80,becarefulofmetabolicsyndrome”,“obstructionmayoccur,cardiovasculardiseaseprevention”,and“scalpcare”healthseminars,etc.Therewerea totalof581peopleattendingtheseminars,withanaveragesatisfactionscoreof90.1.

In addition, we are also devoted to internal education on matters related to CSR. We invited“SocietyofWilderness”certified instructors to introduce the“BeachCleaningEvent” to strengthen theunderstandingof thecontinuousvolunteeractivities in thecleaningofFulongBeachinrecentyearsandtodeeplyunderstanditsimportanceinoceanprotection.WealsoinvitedHongdaoSeniorCitizen'sWelfareFoundationtosharewithusethe“LivingExperienceWiththeElderly”inordertounderstandthedailylivesoftheelderlythroughspecialequipmentandtoexperiencethe inconveniencefacedbytheelderlyaswelltogaingreaterunderstandingoftheelderly.

Thefull-timeWelfareCommitteeDirector-GeneralhasservedtheCompanyfortwoyears,andthethemeof“Energy,Passion,Enthusiasm”isadoptedtoorganizevariouswelfareactivities, including the monthly birthday meals, domestic employee tourism, Christmas party/ChineseNewYear’sparty,marriageand funeralevents/childbirth/birthday/threeholiday bonuses, etc. The budget execution rate in each year is nearly 100%. In addition to variouswelfareoftheWelfareCommittee, inATEN,theChairmanalsoarrangeshistimetopresentgiftstoemployeeswhosebirthdaysareinthecurrentmonth,andalsoprovidesa birthday card with his signature in person, which may be minimal but represents the Company’scareforeachemployee.

EAPs Employee Assistance Program‧Your Best Support

Legal consultation Management Consultation

Psychological Consultation

Purchase and Sale DisputesCar Accident MediationProperty Inheritance

Team LeadershipPersonnel ManagementEmployee Care

Family and MarriageParenting EducationInterpersonal Relationships

Toll-free Direct Line: 0800-299-988 (Monday to Friday 10:00-20:00; excluding regular holidays)Email: [email protected] (excluding regular holidays, reply within 24 hours)

Global Human Resource

Center Employee

Relationship Project

Active Social Participation5.1 Education Care and Cultural Asset

Promotion

5.2 Elderly Activities and Care for the

Disadvantaged


5.4 Overseas Record

47

5. Active Social Participation

48

Major Topics

SocialWelfareFeedback,FriendlyEnvironment


Thepurposeofcorporateexistenceanddevelopmentshallnotonlybefor theseekingof investmentprofitsof theshareholdersorpromotionofnationaleconomicprosperityandgrowth,butshallalsobeforgreatervalues,suchasgivingbacktothesocietyandcontributiontothesociety.Throughtheuseofthecorporation’sorganizationandfinancialcapabilities,invariousaspectsanddepths,seekthe“commongood”fortheenvironmentandthedisadvantagedoftenoverlookedbythesociety.

AccordingtotheCorporateSocialResponsibilityBestPracticePrinciplesoftheCompany:“TheCompanyshallassess the impactof theCompany'soperationonthecommunity,andshallappropriatelyemploy localmanpoweratthebusiness locationoftheCompanyin order to increase community recognition. In addition, through equity investment, businessactivities,donations,corporatevolunteerservices,orotherwelfareprofessionalservices, etc., the Company shall invest resources in organizations solving social or environmental issuesviabusinessmodels,orshallparticipate inpublicorganizationforcommunitydevelopmentandcommunityeducation, relevantactivitiesof charityandwelfareorganizationsandgovernmentagencies, inorder topromote thecommunitydevelopment”.Regarding theperformanceandaspectsofATEN’s socialparticipation,throughyearsof implementation, it isabletoheadtowardasystematicandorganizeddirection.Throughcooperationwiththepublicsector,schools,welfareorganizations,andsocial enterprises, the Company expects to gather greater energy in order to provide the most appropriate care to our society and environment as well as the greatest warmth to people.

Duringtheimplementationofeducationcareandcommunityrelationshipestablishment,forthecareandemergencysupportofstudentsinpoverty,theelderly,anddisadvantagedfamilies,ATENisabletodirectlyandindirectlyachievethetwogoalsof“eliminating hunger” and “education quality”.[CorrespondingtoSDGsSections:2.1,4.5]

Thecommunityenvironmentmaintenanceactionsofbeachcleaning,mountaincleaning,recoveryofgardens,supportoffarms,etc.havedemonstratedourconceptandimplementationoftheimprovementofthetwoissuesof“marineecology”and“terrestrial ecology”.[CorrespondingtoSDGsSections:14.1,14.2,15.1,15.5,15.8]


49

Responsible Units

Corporate Social Responsibility Management Committee, Social Participation Group, Ching-Tang Education Foundation, ATEN Volunteer Club


ThroughthemonthlydiscussionmeetingsheldbytheCSRGroupformedbyallfunctionaldepartment representatives under the “ATEN Corporate Social Responsibility Management Committee”, issues related to social participation are planned, discussed, and the executionprogressistracked.ThecharitydonationsoftheCompanyareproposedtotheCSRGroupMeetingfordiscussionaccordingtothe“ProceduresforEthicalManagementandGuidelinesforConduct”andarereportedtotheChairmanforapprovalbeforetheexecutionthereof.Suchrigorousmanagementmechanismsareabletoensurethattheuseofresourcesisperformedthroughsufficientdiscussionandundertheauthorizationofthehighestsupervisorinordertoachievethemosteffectivearrangementanddistribution.

Inaddition,withthesocialparticipationandpolicyintegrationofthetwoorganizationsofthe “Ching-Tang Education Foundation” and “ATEN Volunteer Club” with ATEN, various donationsandpublicwelfareactivityparticipationarejointlyexecuted.Withtheintegrationoftheeffortsandresourcesfromthethreegroups,careandsupportareprovidedtotheissuesofdifferentsocialaspects.

• The “Ching-Tang Education Foundation” was established in 2001. Its establishment philosophy is tocultivate talentandtoprovideeducational supportwitheffort.Thefoundationalsoactivelyparticipatesandencourages cultureand sportseducationrelatedpublicwelfareeventsaswellasprovidesgreatsupporttolocalschools,inorderto implement the education care.

• The“ATENVolunteerClub”wasestablishedin2012.UnderthepromotionoftheCSRconceptandthesupportof tangible resourcesof theCompany, theClub isable tosystematically integrate manpower and plan activity contents in order to continue to contributeefforts inthefouraspectsof“environmentalprotection”,“understandingtheelderly”,“educationsupport”,and“careforthedisadvantaged”.“Caring”isoneofthecorporatecorevaluesofATEN.Throughthesupportofthemanagement levelandthe implementationofemployees, thevolunteercultureofATENcanbedeeplyrecognizedbyeachemployeefromthetopmanagementtotheentrylevelthoroughly.

Understanding the Elderly

Environmental Protection

Care for the Disad-vantaged

Education Support ATEN Volun-teer Club


50

Commitment 2018 Execution Outcome 2019-2021 Goals

Education Care and Cultural Asset

Promotion

In2018,thebudgetinvestedinthisissuejointlyby“ATEN”,“Ching-TangEducationFoundation”,andtheoperatorwasNT$3.61million.Theexecutionstatusandbenefitsaresummarizedinthefollowing:Education Care:• Sponsoredthepaperwindmillcounter-drugtheater,numberofbenefitedpeople:approximately1,500.• DonationofCommonWealthFutureKidsMagazine,numberofbenefitedpeople:approximately20,521.• SponsoredGukengJuniorHighSchoolafter-schoolfireflyclass,numberofbenefitedpeople:approximately33.• SponsoredQingshanJuniorandElementarySchoolbadmintontrainingbudget,numberofbenefitedpeople:approximately49.• SponsoredNationalChiaoTungUniversity,ARRCprospectiverocketprojectresearchbudget.• Xizhidistrictscholarshipforpoverty/emergencysubsidy/academicawards,numberofbenefitedpeople:approximately537.• Xizhidistrictpublicschoolvolunteerthanksgivingceremony,numberofbenefitedpeople:approximately250.Intangible Cultural Asset Promotion: • Continuedtosponsorthe“AletheiaUniversityTaiwanWriterOxfordAward”.• Continued to sponsor the “The Talta” in promoting Taiwanese local music.• Theaterbookingforthemovie“Father”topromotetheTaiwanesetraditionalcultureofthe“PuppetShow”becominguncommonnowadays.

1. ContinuedtoinvestabudgetaboveNT$2 million in education care and intangible cultural assets annually.

2. Assisted children in Xizhi and other areas to agreatextenttohavefairereducationandlearning resources.

3. Continued to support Taiwanese cultural and arts related activities in order to facilitatethepreservationofintangiblecultural assets.

Elderly Activities, CarefortheDisadvantaged,and Community

Environment Maintenance

In2018,theCompanydonatedanamountofNT$1.06millionfor“elderlyactivitiesandcareforthedisadvantaged”and“communityenvironmentmaintenance”,andalsoorganized20volunteeractivitiesthroughthe“ATENVolunteerClub”withatotalof949employeesparticipatingintheactivities.Withtheadditionoftheexternalstakeholders,thenumberofparticipantsreached1137people,arecordhighoverthepreviousyears.Relevantactivityexecutionstatussummaryisasfollows.Elderly Activities and Care for the Disadvantaged:• AsiaBocciainternationalgametechnologyandfundsponsorship.(3volunteers)• Three volunteer activities at the Asia Best Healthcare Nursing House -

campus care visit and outdoor activities. (49volunteers,numberofbenefitedpeople:approximately90)

• Xizhi elderly living alone sustainable lohas summer outdoor activities. (15volunteers,numberofbenefitedpeople:30)

• ChineseNewYear’sEvemealprojectforelderlylivingalone (numberofbenefitedpeople:70)

• 9-9ChongyangFestival-Donationofcaresupplies to disadvantaged elderlies (215 employees provided donations).

• WorldPeaceOrganizationcharityfoodbox.• DragonBoatFestivalandMoonFestivalCharityevents. (439peopleparticipated,numberofbenefitedpeopleof964people)

• OtherDonations:SponsoredtheAurorapercussiongroup.Community Environment Maintenance:• Twosessionsofbutterflyhabitatmaintenance(75volunteers).• Myoneacreoffarmadoptionandfarmingexperienceactivity

(114 participants).• FoursessionsofFulongBeachcleanup(143volunteers),andoneof

the sessions was jointly participated in by the supplier and the government agency.

• ShinshanDreamLakemountaincleaningactivity(24volunteers).

1. Continued to invest a budget above NT$1millionandmanpowerforissuesrelatedtoelderlyactivities,careforthe disadvantaged, and community environment maintenance.

2. Organizedmorethan15sessionsofvolunteeractivities,andthenumberofvolunteers was increased in 2018.

3. Continuedtoinviteallexternalstakeholdersto participate in relevant volunteer activities organized by ATEN.

4. Expandedtheparticipationofoverseasbranches in order to allow ATEN to implementCSRindifferentareasoftheworld.


1000

900

800

700

600

500

400

300

200

100

0

20

15

10

5

0

(NumberofPeople)(NumberofSessions)

2013 2014 2015 2016 2017 2018 (Year)

[Volunteer Club Previous Years Activity Statistics]

377

512

274

550 599

949

Number of Partici-pating Employees

Number of Volun-teer Activities


51

5.1 Education Care and Cultural Asset Promotion

Education isanessential factor for socialadvancementandeconomicgrowth.ATEN'scontributiontosocialpublicwelfarehasstartedincareforeducationatthebeginning.Asthe gap between the rich and the poor becomes greater gradually and social issues emerge continuously, in both rural and urban areas, there are children requiring help. We hope thatwhentheyfacefamilyenvironment issuesorencounteremergencies,theystillhavesufficientabilityandcouragetocontinue learningandgrowthwithoutanydeviation intheirmoralityandbehaviors.Inaddition,theCompanyalsoencouragesthepreservationofintangibleculturalassetsinresponsetoUNESCO,andsupportstheactivitiesoftraditionalfolkskillsandarts,culture,and literature,etc.uniquetoTaiwan, inorder toallowtheuniqueculturalassetsofthislandtobepreservedpermanently.

ATENliststhefourthgoalof“EducationQuality”amongthe17sustainabledevelopmentgoals (SDGs) tobetheCSR’s long-termstrategypolicy,andestablishestheobjectiveof“ensuringequaleducation,fairandhigh-qualityeducation,andlifetimelearning”.

Sponsored Paper Windmill Anti-drug Theater Play

On May 24, 2019, “ATEN” and the “Ching-Tang Education Foundation” jointly invited the “PaperWindmillTheatre”foraanti-drugstageperformanceplay:“SavingFuShiDe”atXizhiXiufengHighSchoolstadiumforgradethreestudentsofsixpublicandprivatejuniorhighschoolsofXizhi,Jinshan,andWanliDistricts.Thisplayisananti-drugstageplaymadeforteenagers,andhasreceivedgreatrecognitionfromstudentsforyears.Theperformersare able to imprint the anti-drug message to students through an entertaining and stern performance inorderto informteenagersaboutthehazardsofdrugs.This is thefourthyearfortheCompanyandthefoundationtosponsortheanti-drugperformanceplay,andweexpectthatallstudentsinXizhiDistrictwillhavetheopportunitytowatchtheplayin

order to develop anti-drug habits. Accordingly, we will continue to organize such an event annuallyandlistitasanitemforlong-termsponsorship.[Numberofbenefitedpeople:1,500]


52

CommonWealth “Future Kids” Monthly Magazine Donation to 100 Elementary Schools in New Taipei City

Inresponsetothe“EventofPublicWelfarePromotion“FutureKids”MonthlyMagazinefor theEstablishmentofaCommonKnowledgePlatformfor2,678ElementarySchoolNationwide”,theCompanyhasdonatedoneyearof“FutureKids”MonthlyMagazineforthefifthyearto100elementaryschoolswithrelativelyfewerclassroomsinNewTaipeicity,inlightofprovidingassistancetostudentsofsmallschoolswithrelativelyfewerresources,suchthatthecontentofthismagazine,includingEnglish,mathematics,history,geography,science,humanities,arts...etc.alongwithzhuyinand livelygraphicsforpresentationcanaccompanychildren in their joyof learningandcultivationofa readinghabit.Throughsuchacommonreadingplatform,childrenareabletoenjoythejoyofknowledgewithoutanydifferencesbetweenruralandurbanareas.According to thequestionnairesurveyconducted by CommonWealth Global Views - CommonWealth Publishing Group, more than96%of teachersandparentsagreewith thecontentof《Future Kids》, and in addition tocourse textbooks, it isable toassist students tobroaden their viewsandknowledgeaswellascultivateareadinghabit.[NumberofBenefitedPeople:Atotalof20,521grade1-2studentsfrom100elementaryschools in New Taipei City]

Donation to Yunl in Gukeng Junior and Elementary Schools After-class Course Budget

GukengJuniorandElementarySchoolsarelocatedintheruralareaofYunlin,andfamiliesof studentsaremostly singleparent,new inhabitants,grandparentingeducation,andstudentsof families inpoverty.As familymembersarebusyatworkwithout time forchildren,childrenareunable to receive recognition fromgrandparentsbutmust seekpeerrecognition.Undervarioushashconditions,theprobabilityofstudentswithdeviatedbehaviors increasesgradually.Toprovideplaceswithwarmthforstudentsrequiringafter-classcoursesand livingguidanceafter school for learning, thePrinciple,Yu-LinCheninitiatedthe“fireflyclass”inlightofintegratingresourcesandinanefforttohelpchildrentochangetheirownfuture.The“fireflyclass”hasbeen implementedforthesixthyear,andthewifeofATEN'sChairmanandthedirectorof theVolunteerClubcontinues todonatethebudgetnecessaryfor thedinner,classafterschool, transportation, teachingmaterials,etc.necessaryforthe“fireflyclass” inGukengJuniorandElementarySchoolsfor thesixthyear, inorder toallowstudents requiringcaretogainwarmthandpropercare.Throughadiversecoursearrangement,afterstudentsparticipate inthefireflyclass,they demonstrate positive changes in their course learning, concepts, behavior, and interpersonalrelationships,inordertoallowthedisadvantagedchildrentofindtheirownfuture.[Numberofbenefitedpeople:33]


53

Sponsored Qingshan Junior and Elementary School Badminton Training Budget

Sponsored ARRC Prospective Rocket Project Research Budget

TheAdvancedRocketResearchCenter(ARRC)ofNationalChiaoTungUniversityisaprivatelyfundedinstitution. In 2012, National Chiao Tung University established the ARRC, and its goal was to promote theaerospacetechnologydevelopmentofTaiwan,withtheresearchonhybridrockettechnologies,developmentof specializedcomponents for rocket technologies,andcultivationof talents in therelevantfield,inlightoftheself-developmentofrocketsinTaiwan.In2021,itisexpectedtolauncha4Ucubesatellitetoperformquantumcommunicationtransmissionexperimentatanaltitudeof100kmabove the earth. ATEN continues to support ARRC in order to allow the Taiwan science education todeveloptheconceptofdirectionalmovementforsystemestablishmentability,andsponsorsthisproject. Inaddition,ATENalsodonatedfourof itsownproductsofVE875FiberExtenderstoassistthetransmissionofthelaunchsitesurveillancescreen(HDMI)backtothemachineroomwithoutloss,whichisalsoanothercaseexampleofATENProAVproductsbeingappliedinadifferentfield.

The New Taipei City Qingshan Junior and Elementary Badminton Team was established in 2014. It isoneofthekeysportsdevelopmentoftheschool. In2017,itwasalsoevaluatedbytheEducationDepartment,NewTaipeiCitytobeakeydevelopmentschool forbadminton.Theteamconsistsofnearly50students.Inadditiontothestudentsoftheschool,theyalsorecruitstudentswithexpertiseor interests inbadminton fromother schools.Under theeffortofthePrincipletoseekabudgetand coach's active training and arrangement for contests, in2018, the team was able to receive the award of SecondPlace in the Junior High Girls Badminton Team Contest in New Taipei City. Sports are an impor tant deve lopment fo rteenagers in addition to academic l ea r n ing . To cope w i th the necessityofstudents’sadaptivitydevelopment, under the condition ofbudgetdifficulty inQingshanJunior and Elementary School, ATEN sponsored a portion ofthe training expenses in order to provide ass istance to the daily trainingof the team. Therecent contest performanceofthe team has also demonstrated the training effect.Webelieveundertheeffortoftheschoolandsupport fromtheCompany, it isable to attract greater students to participate in sports.[Numberofbenefitedpeople:49]


54

Issuance of 2018 “Scholarship for Students of Poverty” and “Emergency Subsidy”

Due to the increasinggapbetween the richand thepoor in the society, low-incomefamiliesmaynotbeable tosupport thenormalschoolingofchildrenat their learningages, in addition to other unexpected accidents and incidents, and the learning rights andthecountry's futurecompetitivenesscanbeaffected.The“Ching-TangEducationFoundation” provides a “scholarship” and “emergency subsidy” to students in various publicelementaryschools, juniorhighschools,andseniorhighschools inXizhiDistrict inorder to provide some economic support to the students, as well as to encourage students withabackgroundofpovertythattheyarestillabletostriveforlearning,therebymakingcontributionstosociety.Thefoundationprovidedemergencysubsidiesto188studentsandscholarshipsforstudentsofpovertyto245studentsinXizhiDistrictin2018.[Numberofbenefitedpeople:433]

Donated “Diligent Study Awards” to select graduates from all public schools in Xizhi.

To encourage graduate students to head toward another learning stage and to continue toupholdtheexcellentlearningspiritwithgreatperformance,the“Ching-TangEducationFoundation”presentsthe“DiligentStudyAward”beforethegraduationseasonofeachyear, and the library coupons are provided to outstanding students selected by all public and private schools in Xizhi.[Numberofbenefitedpeople:104]


55

Xizhi District Public School Volunteer Thanksgiving Ceremony

To demonstrate our appreciation to volunteers servicing 15 public schools in the Xizhi Districtforalongtimewiththeirowntimeandeffort inordertoallowschooleducationtobedeveloped successfully and students’ safety tobeprotected, the“Ching-TangEducationFoundation”organizesa thanksgivingceremony inorder to invitevolunteersfromschoolsaswellasteachersandprincipalstojointlyencouragevolunteersandexpresstheirappreciation,inlightofallowingsucheducationcareefforttocontinueinthefuture.Wealsohopetoencouragevolunteerswithpassionto joinusfortheprotectionofourchildren.[Numberofbenefitedpeople:205]

Continued to Sponsor the “Aletheia University Taiwan Writer Oxford Award” and “The Talta”

Taiwanese local literature and music need to be preserved and promoted proactively; therefore, the“Ching-TangEducationFoundation”continues to sponsor the“TaiwanWriterOxfordAward”organizedbyAletheiaUniversity to promote thehistoricalcontributionandpositionofoutstandingTaiwanese literaturewriters,and topromoteTaiwan’straditionalsingingandreadingmusicaswellastheperformanceoftheyuequinandtaluntsuan instruments,andvariousperformanceandresearchactivitiesofthe“The

Talta”withtheprincipleofresearchandeducation, in lightofallowingmorepeopletounderstandTaiwaneseliteratureandthebeautyofmusicandtoexcelfurther.

Theater Booking for Documentation of “Father”

Inorder tosupport thetraditionalTaiwaneseculturalartofbudaixipuppetry, that is indangerofdecline,ATEN’sChairman,KevinChenbookedtheentire theaterathisownexpensetoinviteall280employeesandrelativestowatchthedocumentaryfilm"Father".Thefilmcreationtook10years,and itnotonlydocumentsthemissiontopassonthetraditionof thepuppetshowforanelderlyateightyyearsold,butalsodiscusses theconflictbetween twogenerationsof fatherandson.The film ispresentedona largescreentodemonstratetheexceptionalhandskillsofthemaster,Xi-HuangChen,inorderto reveal theuniquecharmofthe puppet show and to bring it backtoourdaily lives.Thefilmis very suitable foradults andchildren for viewing in orderto understand the traditional

cultureofTaiwan.


56

5.2 Elderly Activities and Care for the Disadvantaged“Caring”isoneofthecorporatecorevaluesofATEN.ATEN’scorporatesocialresponsibilityperformancealsofollowssuchspirit, in lightofprovidingassistanceandcaretogroupsrequiring assistance and care in the society in a timely manner. Among a great number of issues inTaiwan'ssocietythatneedtobeovercome,the issuesof“agingpopulation”and “increasing gap between the rich and the poor” are most urgent and need to be activelyfacedandhandled.Accordingly,theCompanyalsolistssuchissuesasthekeyCSRdirections. In lightof theassistancefromthevolunteersof theCompanyandfinancialaswellasmaterial resourcesof theCompany, it isabletoprovidecareandwarmthtodisadvantagedgroupsof theelderly, thephysicallyandmentallydisabled,or families inpoverty,etc.Thethreesustainablegoalsof“eliminatingpoverty”,“eliminatinghunger”,and“healthandwelfare” in theSDGsaregradually implemented inaseriesofelderlyactivitiesandcareforthedisadvantagedactivitiesorganizedbyus.

Asia Boccia International Game Sponsorship

BocciaisoneoftheofficialgamesoftheParkGames(knownastheParalympicGames),anditisoriginatedfromtheancientGreeksasathrowinggame.Aftermodification,itthenbecameasportrequiringstrategyandskillswithminimumbodyactions.Thisisacontestparticularlydesignedforthephysicallyandmentallydisabledwithdifficulty incontrollingextensive actions, and the main participants are groups with cerebral palsy, muscle atrophy, spinal cord injury, and rare diseases.

BISFed regularly organizes regional and world open point accumulating contests annually on three continents. In 2018, the “Boccia Taiwan Sports Federation” was able to gain the hosting authority for thegame inAsia. Based on the corporate core value of “Caring”, ATEN hopedto assist the Boccia Taiwan Sports FederationtocompletethehostingofbocciagamesinTaiwanandtospeakforTaiwan,aswellas tocontributesomeeffort to sportsapplicable tothephysicallyandmentallydisabledaswellas theelderly.Accordingly,afterdiscussingwith the hosting unit, we not only provided monetary sponsorship, but also provided the equipmentandtechnologies invideocontroltransmissionandlivebroadcastofATENtothis sponsorship case.

The6-daygamewas completed successfully, anda total of46athletes fromeightcountries in Asia participated in the game. In this project, ATEN had six products and technicalpersonnelparticipating intheplanningandpreparation,andacustomized iPAD

user interfacewas created toallow thedirectorto use a wirelessmethod to perform imageswitching throughanobvious control interface.Thisapplicationalsoprovidedanew look for theCompany'sproducttotheuser.Duringthecontestperiod,theCompanyfurtherassignedninetechnicalvolunteers to standby at any time in order to ensure that all of the images transmitted to the largecentral monitor, the score board, and the live images wereperfectwithouterrors.

Subsequently, ATEN also invited the “Boccia Taiwan Sports Federation” to provide assistance in acting asaprofessionalcoachtoparticipateintheelderlyvolunteeractivityorganizedbyourcompanyandXizhiAsiaBestHealthcareNursingHomeinDecember, inorderto introducebocciatotheelderly inthe institution. Through our participation in this case, we are able to see that there are more groups requiringsupportinthesociety,anditalsoinspirestheCompanytorealizethepossibilityofintegratingthecorporation'sprofessionalcorecapabilitieswithCSR.Thistransformationofasportintoonethatcanbeparticipatedinbytheelderlyisalsoanotherextensionofthebenefitsthereof.[Volunteers Participated: 9 people]


57

Volunteer for the Elderly - Asia Best Health Nursing Home

• Elderly Care–Jide Temple Historical TourTheseasonoffall is themostpleasanttimefortravel.Thehistoricaltour inthecoolfallseasontofeelthesunlightandsightseeingatthemostfamoustemple“JideTemple” inXizhialsoallowedtheelderlytoprayforthemselvesandtheirfamilies.Ontheeventday,wealsoarrangedapaintingandtempleguideforthetour.Next,forthemarketshoppingactivity, thevolunteers lead theelderly to selectandpurchasegoodsand foods theydesired, in lightofbringingbacktheirchildhoodmemoriesandincreasingtheinteractionbetween the elderly and the volunteers. In this event, we also invited 5 EMBA students fromFuJenUniversitytoparticipateintheactivity.ThroughtheparticipationinATEN’sCSRactivity,wewereabletoalsoallowEMBAstudentstounderstandthecorporation’sCSRimplementationmethod, thereby increasingthe influenceandexpandingthepowerofgoodness continuously.

Since 2016, ATEN has cooperated with the “Asia Best Health Nursing Home” (ABHNH) in Xizhi, and elderly volunteer activities are organized 3-4 times annually. Volunteers use the “paid volunteer holiday” provided by the Company to serve at “ABHNH”. In the past years, the main services were to conduct care visits and recovery assistance services, inconjunctionwith fallpreventionandhealthexercises,aswellassimplegroupgameactivitiestoincreasethephysicalstrengthandenergyoftheelderly.Inrecentyears,forthearrangementofactivities,wealso integrateholidays, localcharacteristics,anddifferentthemesintoactivitiesinlightofleavinggreatmemorieswiththeelderlyduringtheshort-time accompaniment.

Relevant activities cooperated on with ABHNH are described in the following:• Elderly Care Activity - Happy Dragon Boat FestivalTheDragonBoatFestivalhasalwaysbeenadateforfamilyreunion;however,weseldomfeel suchaholidayatmosphere from theelderly in thenursinghome.Therefore,wearranged the“WheelchairDragonBoatContest”and“Hand-madeSachet”activities,etc.duringtheelderlycarevolunteeractivitiesbefore theDragonBoatFestival.ATEN’svolunteers firstputheadbandsdepictingdragonheadsontotheelderly,andthenthegamebecametowarmup.Duringtheslowbutintenseprocessofthewheelchairdragonboatrelayrace,thefocusandexcitementoftheelderlywasexpressed,andthecheeringvolunteers were also encouraged to give greater cheers. The event had great joy and happiness.Next,theactivityofhand-madesachetsbegan,allowingtheelderlytofeeltheuseof theirownhands incompletingworkagainwith joy.Aftermorethantwohoursofactivities, theelderlywere tiredbutall showedtheirhappysmiles,whichwasmosttouchingandthankfulforourvolunteers.


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• Elderly Care–Boccia Theme ActivityIn November 2018, ATEN sponsored the “Asia Boccia Game”. Boccia is a sport particularly designedforthehandicapped,anditisalsosuitablefortheelderlyandchildren.Withsuchopportunity,weinvitedtheprofessionalcoachfromthe“BocciaTaiwanSportsFederation”to provide a brand-new activity experience to the elderly at ABHNH. The Boccia coach withextensiveexperienceunderstood thatunder the factorsofageandhealthof theelderly, theymightnothavegreatattentionandphysicalstrength.Therefore, thecoachusedtermsandlanguageunderstandabletotheelderlywithasenseofhumorinordertoguidetheelderlytomakesimplethrows,tounderstandscoring,andhowtousestrategyto overcome crisis in order to win the game. With stable progress, we observed that the elderlywereallintothegameandusedtheirbrainstothinkforeachthrowoftheball,andallgreatmovementsearnedacheerfromthecrowdwithjoy.Thiswaswhatweexpectedtoseefromthefacesoftheelderlywithconfidence,energy,andhappiness.

Attheendofeachactivity,allvolunteersareabletosharethethoughtsandopinionswiththeinstitutionmembers,andtodiscusspossibleimprovementsfortheactivities.ATENwillcontinue to cooperate with ABHNH and will serve the elderly in the institution that need ourassistance.Wealso lookforwardtothepossiblyof realizingtheconceptofATEN’sChairman:“IntegrationoftechnologyandexpertisedevelopedbyATENwiththe livesoftheelderly,creationofsupportingortechnologyproductsbeneficialtotheelderly”.[Numberofvolunteers:49,numberofbenefitedpeople:approximately90]

• Elderly Care–Xizhi Elderly Living Alone Sustainable Lohas Summer Outdoor Activity

Withtheagingsocietyandtransformationoffamilystructure,manyelderly livingalonehave to live alone without having any children or due to children living in other places orabroad, such that theirdaily livesarenotproperlycared forbyothers.Toprovideopportunities to the elderly to go outdoors in order to slow down the aging process, the CompanycontinuestocooperatewiththeXizhiDistrictOfficeandsponsorsthebudgetnecessaryforactivities. Inaddition,theCompanyalsocallson15volunteerstousetheironedayof“paidvolunteerholiday”alongwiththeother15volunteersfromthedistrictofficetoaccompanytheelderly inaone-on-onemanner,andto listentotheelderlytosharetheir lifeexperiencesduringtheactivity. Inthisactivity,thesitesselectedweretheBaoshan Reservoir, Beipu Old Street, and Guanxi Herb Jelly Museum, in order to allow the elderlytowalkandexperienceanherb jellyDIYactivity, toenjoytheHakkamonument,etc.,suchthattheywereabletofeelthecareandcompanyofthevolunteers, in lightofallowingtheelderly tofeel thewarmthfromthesocietyapart fromtheir regular lonelydays.[Numberofvolunteers:15,numberofbenefitedpeople:30]


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World Peace Organization Charity Food BoxTo many hungry children, winter vacation and the Chinese New Year are not a happy time. When school is on winter vacation, it also means that the hungry period is coming, and children start to worrywhentheycanhavetheirnextmeal.Accordingtothestatisticsofchildren inpovertyserviceconductedbythe“WorldPeaceOrganization”, thereare30%ofdisadvantagedchildrenservicedthathavenobreakfastforthreedaysinaweek,andmorethan73%ofchildrenworryabouthavingnofoodduringwinterandsummervacation. In response to the“Bags forHungerChildrenWithGreat Years” launched by the World Peace Organization, the Company invited employees to donate foodmaterialssuitableforchildrenandwithanexpirationperiodabove6monthsinJanuary,andthefoodmaterials includedmilkpowder,cereal,highfibercookies,noodles,cans...etc.toassistchildreninpoverty, inordertoallowthemtohaveabrandnewyearfullofhopeandtoprotectthemfromhungerduringthewintervacation.Afterthelaunchoftheevent,employeesparticipatedwithpassion,andtheVolunteerClubwillorganizesuchaneventagaininSeptember. Inthefuture,theCompanyplans to organize the material donation activity two times annually.

Chinese New Year’s Eve Meal Project for the Elderly Living Alone (Pingtung)

ATENcaresfordisadvantagedgroupsoverthelongterm,inparticular, to theneedsof theelderly livingalone.Duringthetimeof theChineseNewYear’sEve,ATEN'sVolunteer Club initiated the cooperation with the Heng ChunChristianHospital for the“2018ChineseNewYear’sEveMealProjectfortheElderlyLivingAlone”.Withthe passion and support by the Chairman and ATEN's employees,wewereabletoprovideChineseNewYear’sEve meals to 70 elderly people living alone in Taiwan, alongwith200blankets inordertoallowtheelderlytohave a warm and happy Chinese New Year. To provide hotandhealthyChineseNewYear’sEvemeals to theelderly, the nutritionists at Heng Chun Christian Hospital customizedthemenufortheelderly,andthecontractedrestaurantusedfreshfoodingredientsforcookingintheearly morning as well as used insulation bags particularly preparedbyATENtowrapandstore themeals.BeforetheChineseNewYear’sEve,themealsandtheblanketsweredeliveredtothehomesoftheelderlyandtosharetheloveandcarefortheelderlylivingalone.[NumberofBenefitedPeople:70]

9-9 Chongyang Festival–Donation of Care Supplies to Disadvantaged Elderly People

For theraisingofcharity funds, inadditiontotheCompany’sdonation, theVolunteerClubalsooften invitesemployees toparticipateintheeventinordertodemonstratetheemployee’ssocial responsibility. With the consideration that there are still many elderly with disabilities living alone in South Taiwan, or therearedisadvantagedfamiliesrequiringelderlycareathomebutfacingdifficulties inthecostforelderlycare,theVolunteerClub then cooperates with the planning and arrangement ofHengChunChristianHospital.Before thedayof the9-9Chongyang Festival, the Volunteer Club initiated the “2018 99 andLongLivingElderly inTaiwan”formaterialdonationsofdiapers,caremats,etc.,andalsoplannedthematerials foraone-yearperiod, fordistributingtothedisadvantagedelderly,andhouseholdsandfamilies inpoverty infivevillagesandonetownship inHengChundistrictquarterly. Inashortperiodoftime, there were 215 employees participating in the event, and atotalofNT$109thousandwasraisedforthepurchaseofthematerials.[NumberofEmployeesParticipated:215]


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Dragon Boat Festival Charity Gift Box Activity

EmployeesofATENcontinuedtodemonstratetheircharitycarebeforetheDragonBoatFestival,andprovided1.5kgof rice,Guanmiaonoodles,meatpowder, sunfloweroil,vegetablescookies,picklednuts,andcannedfoods,etc.packaged intocharitygiftboxesforemployee'ssubscriptionandpurchasefordonationtohighriskfamilies,singleparentnewinhabitantfamilies inXizhiDistrict,anddisadvantagedfamilies inQixin.Theactivityraisedatotalof281giftboxeswithatotalvalueofNT$140,500,andprovidedthemtotheXizhiDistrictOfficeforforwardingtofamilieswithneeds inordertoshare loveandcareduringtheDragonBoatFestival.[Numberofemployeesparticipated:186,numberofbenefitedfamilies:281]

Moon Festival Charity Event

BeforetheMoonFestivalofeachyear,theVolunteerClubofATENinvitesemployeestocareforthedisadvantagedandtosubscribeformooncakes.Thisyear,withtheenthusiasticparticipationofemployees,atotalof683boxesofmooncakeswereraisedforthecharityevent.ThroughtheQixinSocialWelfareCenter,Xizhi/Pinlin/WanliDistrictOfficesofNewTaipei City, Xizhi Aboriginal Family Care Association, Good Shepherd New Taipei City Cross-Cultural Marriage Family Service Center, Pingtung Heng Chun Christian Hospital, XizhiGloryChurch,XizhiEdenSocialWelfareFoundation...etc.,underthenamesoftheemployees,weshareourcarefortheelderlylivingalone,emergencysupport,familiesandchildrenofthedisadvantaged,inordertocreateawarmatmospherefortheMoonFestival![Numberofemployeesparticipated:253,numberofbenefitedpeople:683]

Sponsored the Aurora Percussion Group

The“Aurora PercussionGroup”was founded in2004by theViceDirector of theJuPercussionGroup,Hung-ChiHo (TeacherHo)withmembersofdifferentdisabledorganizations including “visual disability”, “hearing disability”, “handicapped”, “mental disability”,and“autism”,etc.Thepurposeof thegroup is toallowthephysicallyandmentallydisabledofvariousdisabilitiestoopentheirworldandtojointhecrowdthroughcontinuous practice and cooperation among team members, such that they are able to developconfidenceandreceiveapplauseonthestagewiththeirowneffort.Foroveradecade,thegrouphasprovidedhopetomorethan80families,andestablishedapositiveeducational meaning to the society.

UnderthepassionateleadershipofTeacherHoandgreateffortsofmembersoftheAuroraGroup, in 2015, the Group was able to play at the “National Concert Hall”, the highest musicalhall inTaiwan,andreceivedgreatapplauseandfeedbackfromtheaudience.TheGroup’soutstandingperformancehasalso ledtheteamtoreceivenumerous invitationsfromdifferentcharityorganizationsandcompanies.Therefore,notonlytheteammembersareabletojointhecrowdandcanfurtherspreadsuchpositiveenergyofpersistentefforttothesociety.Overthepastyears,ATENhassponsoredtherentfortheplaceforteampracticeoftheAuroraGroupinZhongheandhasprovidedsolidsupporttotheGroupsuchthattheyareabletopracticewithoutworries.Wewillcontinuetoexpandfurther fromthisfoundationbasedonsuchconceptinordertoallowmoredisabledfriendstofindtheirposition inthemusicalfieldandtorecognizethemselvesagain,aswellastoallowtheirfamiliesandtheworldtoseethepowerofanewbeginningoftheirlives.


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Fulong Beach Cleaning Activity

The14thgoalof the17sustainabledevelopmentgoals (SDGs)of theUnitedNations is“marineecology”.Thegoalofsection14.1istoreducevariouswasteandpollutionintheoceanoronland.Since2012,ATENhasadoptedalengthof360mofthebeachinfrontoftheFulongDongxingTempleatGongliaoDistrict,NewTaipeiCity,with the“NortheastandYilanCoastNationalScenicAreaAdministrativeOffice,TourismBureau,MOEA”,anditistheseventhyearfortheCompanytocontinueits commitment to earth environmental protection.

Topromotetheenvironmentalprotectionconceptfortheoceanandland,ATENhasnotonlyinvitedemployeeswiththe instructorqualificationof theSocietyofWilderness to leadthestaff inbeachcleaningactivitiesand toexplain the sourceofwasteand impactson theecology. In2018, theCompanyalso invitedtheXizhiDistrictOfficeandthreesuppliers to jointlyparticipate inthebeachcleaningtogetherwithATEN,inordertoallowmorepeopletounderstandtheimportanceofcontrolof thesourceofvarious typesofhumanwastecollectedonthebeach, thereby influencingmorepeopleandachievingagreaterexpandingeffect.

In2018,ATENorganizedatotaloffourbeachcleaningactivitiesandthetotalamountofgarbageandwastecleanedreached339.37kg.

[VolunteersParticipated:143people,including22relativesandexternalstakeholders]

Butterfly Habitat Protection, Planting and Weed Removal, Sustainable Home for Butterflies

Regardingthe15thgoalof“territorialecology”inthe17sustainabledevelopmentgoals(SDGs)oftheUnitedNations,thegoalofsection15.5istoprotectandpreventtheextinctionofspeciesindangerbefore2020,andthegoalofsection15.8istopreventintrudingforeignspeciesfromintrudingintothe territorial and aquatic ecosystems.

TheJiannanButterflyGardenandJiannanButterflyTrailinNeihu,TaipeiCityisoneofthefewbutterflyconservationzones intheareaofTaipeiCity,and its richbutterflyecological resourceshavemadeitbecomethebestplacetoconductecologicaleducation intheregionofYangmingMountainofGreaterTaipei.ATEN’sVolunteerClubcooperatedwiththe“ButterflyConservationSocietyofTaiwan”for thesixthyear. In2018,atotaloftwobutterflyhabitatprotectionactivitieswereorganized.ATEN’svolunteers and their fami l iesp e r f o rmed t h e c l e a n i n g o faggressiveandhazardous foreignplants, plantingofnectariferousplants,insertionofplantdescriptionsignboards, etc. in the area on weekends.Under the leadershipandexplanationof theButterflyConservation Society, participants wereable tounderstanddifferentbutterflyspeciesandtheecologicalenvironment necessary for thegrowthofbutterflies. Inaddition,participantswereable toexperience the typesofaggressiveforeignplants:howmilea-minuteweedcancauseseveredamagetothenectariferousplants inthehabitat...etc.Duringthelaborandeffortscontributedtotheactivity,thevolunteerswereabletogainrichbutterflyecologyandenvironmentalprotectionknowledge.

[Volunteers participated: 75, including 46 relatives]


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Shinshan Dream Lake Mountain Cleaning Activity

At a mountain located a 15 minute drive fromXizhiDistrict,NewTaipeiCity, thereisabeautiful lakenamed“DreamLake”,atanaltitudeof325mwithgreatscenery,a quiet environment, and pure water, but it is in a remote area with limited transportationaccess.The lake'sarea isnot large,buta fish species“rasborinusformosae”underprotection lives in thelake,andthe lakealso includesaspeciesof carnivorousplantnamed“utriculariaaurea lour”capableofcatchingwigglers

aswellasmorethan40speciesofdragonfliesanddamselflies inthearea.Despitethe lake'ssize,itcontainsa richecologicalenvironment.However, theaggressive foreignfishspecies thestripedsnakeheadwasreleasedbyhumansintotheenvironment,causingasevereimpactontheexistenceofrelevant species.

Thetrailleadingtothelakeisalsodisposedofvariouswaste,suchasgarbageofplasticbottles,plasticdrinkingcups,disposabletableware,andeventiresdumpedbypeoplewithoutpublicmorality.Asa localcompany inXizhi, tocontinuetofulfill theresponsibilityofenvironmentalprotection,ATENcooperatedwiththeSocietyofWilderness. InOctober,theCompanycalledon24volunteerswithahalf-dayofpaidvolunteerholiday.Themountaincleaningactivitywasinitiated,andinlessthantwohours,morethan100kgofgarbagewascollectedfromthefield.Afterthelaborwork,theinstructorof theSocietyofWilderness ledthevolunteersona tour in thespecialenvironmentandecologyofShinshanDreamLake.After learningthatthefishspecies“asborinusformosae” is indangerofextinctionintheDreamLakeandaboutthespecialgeographyandecologicalenvironmentinthearea,it furtherstrengthenedour responsibility towardDreamLake. In thefuture,ATENwillcontinuetodiscusscloselywiththeSocietyofWildernessonhowtocombinetheeffortsofthetwopartyinorderto protect the last ecologically valuable site in Xizhi. [Volunteers participated: 24]

My One Acre of Farm Adoption and Farming Experience Activity

Since2017,theCompanyhas implementedthe“contract farming”methodtoadoptthefarmingpaddyfieldsinYilan.ThepurposeistosupportthelocalfarmersinTaiwanandtoincreasetheincomeoflocalfarmers,aswellastoeffectivelyachievetheenvironmentalprotectionfunctionsofpaddyfieldswiththeculturingoftheundergroundwater,preventionofgroundsubsidence,climateregulation,etc., such that farmlandsarenotabandoned,andacresofgreen farmsareable todemonstratethebeautyofourfarmandvillage landscape.Paddyfieldswiththeuseof“non-toxiccultivation”agriculturalmethodscanbecometemporaryprotectiveplacesforwaterfowlandaquaticanimals inordertoincreasetherichnessoftheecology.

In addition, to allow employees and their relatives to have the opportunity to touch the earth and experiencefarmingcultivationaswellastocontributeefforts inthepaddyfieldsadoptedbyus. InMarchandJuly,wefurther invitedfarmersto lead employees and their relatives to perform spring seeding and summerharvesting in person, in order to allow everyone to have the opportunity to ride on the seeding machine and to experience the efficiencyofmechanizedcultivation.Duringthe activity process, in conjunction with explanation, parent-children activities, and local cuisine, everyone is able to get close tothelandandtoenjoythebeautyoftheearth.[Volunteers participated :114, including 75 relatives]


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5.4 Overseas Record

Red Cross Blood Donation ActivityThe Belgium branch has participated in the local red cross blood

donationpromotionactivities forseveralyears,andemployees

actually participate in the blood donation in person, and many

employees have supported this activity.

Paperless, Environmental Protection to Care for Our EarthBy changing the sales payment notice and

employeesalarystatement intoelectronicforms,

the Belgium branch is able to gradually reduce

theuseofpostalmailandpaper. It isestimated

that more than 130 envelopes and relevant paper

wasreducedmonthly.Thecarbonfootprintused

during the postal mailing process can also be

reduced, such that actual action is implemented

tomakecontributiontothecarbonreductionand

careofourearth.

OverseassalesofficesofATENvoluntarilyrespondtotheCSRactionsoftheheadquarters,andutilizevariousmethodstoimplementCSRatdifferentareasworldwideaccordingtotheactualneedsofthelocalsociety!

Belgium Sales Branch Company

”ATEN Infotech”of thesalesbranchcompany inBelgiumsupports theCSRpolicyof theGroup’sheadquarters andalsoadoptsdifferentmethods includingdonationor volunteer activities toimplement CSR.

‘tWeyerke–Charity InstitutionIt isthefifthyearfortheBelgiumbranchcompanytosupport

thisproject,andanamountofEUR1,000hasbeendonated

tothe localcharity institution ‘tWeyerkeforsupportof local

handicapped people in order to be a joint sponsor. The amount

willbeused for the trainingandeducationofhandicapped

people, permanent residence planning, and administrative

expensesoftheinstitution.ATEN’sbranchcompanyinBelgiumalsoassistsinthefund-raisingactivities

oftheyearthroughadvertisementlistinginthelocalmagazine.Inaddition,throughtheparticipation

ofvolunteers,theyalsoassisttheChristmasmarketactivitiesorganizedbytheinstitution.


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Cancer Research SupportKomoptegenKankerisanorganizationprovidingassistancetocancerpatientsandtheirfamilymembers.Theorganizationoftenorganizesvariousactivitiesandfundraisingasafundforcancerresearch.EmployeesoftheBelgiumbranchalsoparticipateinthedonationactivityinordertosupporttheconceptthereof.

Natuurpunt, Limburg –Natural Ecology ProtectionNatuurpunt isanon-profitorganizationdedicatedtotheprotectionof localanimalandplantecosystems.EmployeesoftheBelgiumbranchusesthreedaystoparticipate inthevolunteer activities in order to assist the organization to protect the valuable ecological environment in Belgium.

Children’s Medical Service and SponsorshipThroughthepurchaseofmaterialsfrom“Buy4Life”,forthetransactionofeachproduct,afixedportionoftheamountisdonatedtoahumanityorganizationinEurope,inordertoallowcharityorganizations,suchasthechildren’scharityinstitutionsofComiClownsvzwandElsSmileyvzw,etc., tobenefitfromsuchdonation inordertoprovideassistancetochildrensufferingfromlong-termdiseases.Inaddition,volunteersfromtheBelgiumbranchalso dress as clowns to proceed to child outpatients at hospitals or clinics in order to draw attentiontochildpatientsandtoassistintheserviceofchildoutpatients.


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Canada R&D Center

Richmond Olympic OvalStadium VolunteersTheRichmondOlympicOvalwasthecontestarenaforspeedskatingoftheWinterOlympicsgame, located inRichmond,on thewest coast ofCanada and established in 2010.

Currently, ithasbeenredefinedtobeamulti-functionarenawithvariousfacilitiesfor icehockey,rockclimbing,athleticstrack,rowingtank,etc.Toservicethecommunity,theATENCanadaR&DCentercallsonemployeestousetheirsparetimetoactasvolunteers forvisitor service, site tours, etc. in the stadium in order to implement ATEN CSR with actual actions.

Ling Yen Mountain TempleTheCanadianLingYenMountainTemplehasmorethan10,000followers inVancouverlocally,anditisnotonlyareligiousplace,butalsoaplaceforvariousservicesandcharityactivities, such as: snow shoveling, community cleaning, disaster rescue, etc. in order to assistcommunitiesandneighborhoods.EmployeesoftheCanadaR&DCenterhavenotonlyparticipatedincharitydonationbutalsohaveactedasvolunteersbeforetheprayingeventsat the temple, includingassistance incleaningof the siteandhandling trafficguidanceintheparkinglot.

U.S. Sales Branch Company

Christmas Angel Tree ProgramTheAngelTreeProgramisanactivity initiatedbytheSalvationArmyforfamilyChristmasgift raisingactivityforthosehomeless,unemployedpeople,andpeoplerequiringurgentmedical treatment, etc. such that they cannot celebrate the Christmas. Companies, groups, and institutions that wish to participate in this program can obtain the Angel TreeTagsaccordingtothegiftquantitydesiredfordonationtodecoratetheChristmasTreeorbulletinboard,followingwhichcompanyemployeesorcustomersthenvoluntarilydonatevariousnewandunpackagedgifts, includingtoys,electronicgamingmachines,shoes,blankets,quilts,backpacks, radios,etc.Then,beforeChristmasEve,parentsofdisadvantagedfamiliescanthencollectappropriatetoysorgoodsaccordingtotheage,gender,andpreferenceof theirchildren,andwraptheirgifts inorder toprovide themtotheirchildrenonChristmasmorning,therebybringing joyandwarmthtochildrenofdisadvantagedfamilies.

ThisisthesecondyearforATEN’sU.SbranchtoparticipateinthisprogramtoencourageemployeestodemonstratetheircareandjointsupportofATENCSR.

Environmental Protection6.1 Friendly Environment Actions and Goals6.2 Climate Change Responsive Actions and

Risk Management Assessment6.3 Mitigation of Environmental Impact 6.4 Environment Sustainability Management6.5 Greenhouse Gas Inventory Checking

Management

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6. Environmental Protection

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Major Topics

Withtheuseofacontinuousconsumptionandproductionmodel,thegenerationofwastecanbegreatlyreducedthroughprevention,reductionofemissions, recycling, and reuse.[CorrespondingtoSDGsSections:12.4,2.5]

Adopt emergency actions to cope with climate change and its impacts, strengthen the education andpromotionrelatedtomitigation,adaptivityofclimatechange,aswellasreductionofimpactsandearlywarning,etc.,therebyenhancingtheabilityofpersonnel and institutions on such issue.[CorrespondingtoSDGsSection:13.3]

Protect,recover,andpromotethecontinuoususeofterritorial ecosystems in order to continuously manage forests,preventdesertification,preventandchangelanddeterioration,andsuppressthelossofbiodiversity.[CorrespondingtoSDGsSections:15.1,15.2,15.4]

Environmental Friendliness, Green Products


Climatechangeimpactsthelifeofmankindandtheglobalecologicalenvironment,which is an important issue considered seriously by societies worldwide. To cope withtheclimatechange,countriesare facingthedilemmabetweeneconomicgrowth and environmental sustainability, which is indeed a tough challenge to allofus. Inadditiontocontinuousmonitoringof thetrendofclimatechange,andcompliancewithenvironmentalprotection lawsof thegovernment,ATENalso tracks thedevelopmentand responsiveactionsof various countriesonsuchissue,andalsocontinuestocontributeefforts inenergysavingandcarbonreduction,alongwithactive implementationofenvironmentally-friendlyactions.Under theprocessofcontinuouspursuitofecologicalenvironmentprotectionandbalancedsustainabledevelopment,ATENseekstousetechnologyinnovationto develop energy saving products, and through quality improvement, reduction ofmanufacturingcost, reductionofproduction lineprocess inorderto increaseproduct competitiveness, thereby strengthen the ability to cope with climate changeandtoexpandthe influenceofATEN.Furthermore, theCompanyalsoguidesthesuppliers intheestablishmentofagreensupplychainjointly inordertoreducetheclimateriskandimpactsfacedbytheCompanyoperation.


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Responsible Units

ATEN Corporate Social Responsibility Management Committee － Green Operation Group

Management Mechanism1.QualifiedISO14001:2015versionofenvironmentmanagementsystemcertification.2.QualifiedISO14064-1greenhousegasexternalinspection,trackingofemissionofgreenhousegas.3.Conveyenvironmentknowledgethroughseminarsandactivities.


Commitment 2018 Execution item 2018 Execution Outcome 2019-2025 Goals

Greenhouse Gas InspectionConducted ISO 14064-1 greenhouse gas external inspection.

QualifiedISO14064-1externalinspection.

Through review, we established the carbon reduction goalandenergysavinggoaltobeasfollows:1. By 2020, greenhouse gas emission intensity lower than0.52(greenhousegasemission/individualfinancialreportrevenue(NT$million)).

2. By 2020, power consumption intensity lower than 5.0(powerconsumptioninthousanddegrees/numberofemployeesinTaiwan).

Monitor energy use, implement energy saving,

and carbon reduction.

Monitorenergyriskandpromoteaswellasimplemente energy saving and carbon reduction projects.

The overall power consumption amount in 2018 was reduced by0.869%from2017.Introducedtheimprovementofairconditioning management solutions, such that the Company headquarterspowerconsumptionwasreducedby18.20%from2017, and the production amount was increased by 3.51% (in comparison to 2017). Overall power consumption was 3946.8 thousand degrees (equivalent to 14208.6 million joules), the power consumption intensity in 2018 was 5.95.

Green Supply Chain Management

• Paid attention to RoHS and REACH regulation updates.

• Conflictmaterialinvestigation.• Hazardous substance management and supplier

promotion and investigation.

• Surveyed the supplier REACH SVHC 191 items compliance with regulations,andrequestedsupplierresponserateof100%.

• “GeSIConflictMaterialSurveyForm”,atotal325suppliersweresurveyed, and the response rate was 100%.


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6.1 Friendly Environmental Actions and Goals

ATENisaleaderinglobaldigitalinformationsharing,andupholds“SimplificationandTechnologySharing”asthebrand’scorespirit,focusesontheaspectsofcarefor“HumanityandLand”,andadoptsthephilosophyof“Creatingemotionallinksbetweenpeopleandtheenvironmentaswellasbetweenpeopleandtheworld”.Withtheconsiderationofthe industrytrendsand issueofresponsetoclimatechange,ATEN implementsenvironmentally-friendlyactionsbasedontheconceptoftechnologyresearchcapabilityandgreenproductdesign inorder tocontinuouslydevelopproductscapableof reducingenergy resourceconsumption, inlightofutilizinginnovativethinkingandtechnologiestoheadtowardthedirectionofgreen,energysaving,environmentalprotection,andpromotionofoverallwelfareofmankind.

In2018,ATENimplementedactiveactionsinthe“designofcompactproductswithmaximizedperformance”and“invitationofexternal stakeholders in theprotectingmarineecologybeachcleaningactivity”,etc.inorder todemonstrateourcommitment toenvironmental friendlinessand tocontinue toexpandourenvironmentalsustainabilityinfluentialpower.

Des ign of compact product wi th max imized performance - Developed world's smallest Laptop USB KVM Console Crash Cart Adapter.

ATENhasdesignedvariousnovelelectronicinformationproductsthroughinnovativeresearchandtechnologyfora longtime, in lightofadoptingtheconceptofgreendesigntoshortenthemanufacturingprocessandenergyconsumptionofproductuse. Inaddition,wealsoseektobringgreatconveniencetousers invariousoperation interfacesandoperatingspaces.Sincetheproductsarebasedonthedesignconceptofenvironmentally-friendly,thecompactnessandmaximizedperformanceofproductshavebecomethemainfocusanddirectionfortheCompany'sresearchanddesign.

Expand environmental sustainability influential

power - Invited external stakeholders to participate in marine ecology protection beach cleaning activity.

BeachCleaningLocation:BeachareainfrontofGongliaoFulongDongxinTemple.

Numberofbeachcleaningpersonnel:50

Lengthofbeachcleaned:approximately360m

Garbage total weight: 0.092 tons

Dimensions: 7.05 x 5.37 x 3.01 cmWeight: 0.13kg(0.29lb)

Component reductionof

55.3%.

Size reduction of72.0%.

Weight reductionof

73.4%.

Energy consumption saved 67.6%.

S e r v e r E n d Connection Interface

VGA Monitor USB-A Keyboard and Mouse Signal

Mini-USBNotebookComputerConnectionInterface

Computer

Monitor

Keyboard/Mouse

Image Capturing Box

Data Transmission Cable

External DVD-ROM

Other Connecting Wires or

Transformers

Notebook Computer

CV211


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6.3 Mitigation of Environmental Impact

Toeffectivelymitigateenvironmentalimpacts,inadditiontoactiveimplementationofenergysavingacarbon reduction mitigation measures, ATEN also continues to pay attention to various environmental issues and monitors the global climate change trend and environmental impact closely. Through the“Environmental ImpactMitigationandSustainabilityManagementPlatform”, theCompanyperiodicallyidentifiesrelevantrisksofclimatechange,andadoptsenergysavingandcarbonreductionactions to mitigate the climate change and environmental impact. With continuous monitoring and analysis, implementationofpolicyandestablishmentofvariousstandardprocedures, theCompanyexecutesrelevantactivitiesofperiodicenvironmentalauditsandreviews,etc.accordingtotheannualplan,therebyachievingvariousgoalsforenergysavingandcarbonreductionaswellasreducingtheimpact on the environmental climate.

Environmental Sustainability CommitmentGlobal climate change has stimulated ATEN to implement environmental sustainability into the Company'sDNA.Wearecommittedtoresponsiveactionsforclimatechange,andwewillcontinuetoimplementtheaspectsofenergymanagement,waterresourcemanagement,pollutionprevention,supplierenvironmentalprotectionperformance,greenproducts,chemicalsubstancemanagement,environmentalprotectionregulatorycompliance,andexternalenvironment impactriskcontrol,etc.,in order to continue to improve the environmental analysis and environmental management solution controls, toactivelyestablisheffectivemitigationandadjustmentpoliciesaswellas implementationthereof.Therefore,throughsystematicmanagementandmonitoringofenergyresourcesandperiodicreviewsbyseniormanagers, theCompany isable toexcel further towardthecommittedgoalsofcontinuous improvement and emissions reduction.

6.2 Climate Change Responsive Actions and Risk Management Assessment

Climatechange impacts the lifeofmankindand theglobalecologicalenvironment,which isanimportant issue considered seriously by societies worldwide. ATEN believes that the Company is certainlyaffectedbyclimatechange,andshallalsoactivelybearresponsibilityformitigationoftheimpact. In the “Environmental Sustainability, Energy Sustainability, and Green Sustainable Product Management Policy” approved by the Chairman, it states that responsive actions to climate change are theCompany’sresponsibilityforsustainableoperation.

Through active participation in various domestic environmental sustainability related activities and understanding, including issues related to theenvironmentof concernby stakeholdersof thegovernment, investors,customers,andthegeneralpublic in thesociety, risksandopportunitiesofvarious typesofenvironmentalprotectionmajor issuesare identified. In the future, theCompanywill continue to pay attention to the climate change trend and the responsive actions adopted by thegovernmentoftheR.O.C., inordertocomplywiththeenvironmentalprotectionregulationsofthegovernment, toactivelyadoptenvironmentally-friendlyactionsandtoguidesuppliersto jointlyestablishthegreensupplychain,therebyreducingtherisksand impactsofclimatechangefacedbythe Company's operation.

Step 1 Step 2 Step 3 Step 4

Green Products GreenDesign Environmental Protection Laws

Green Training

Green Purchasing

Green Production

Emissions Reduction

Environmental Impact Mitigation and Sustainability ManagementPlatform

Risk Identification

Responsive Action and Adjustment

Impact Mitigation

Sustainable Development


71

2. Improve equipment efficiency:

Periodicallyperformmaintenanceandcare to seekmethods forenergy savingandimprovementmeasuresofgreatereffectiveness.

3. Purchase energy saving products:

Purchase products equipped with an energy saving logo, water saving logo, Energy Star, andenergy-savingfacilities,etc.

4. Improve employee concepts:

Promote and educate energy saving concepts to all employees.

Green Sustainable Product PolicyWhilefacingthethreatsofenvironmentalhazardoussubstancestotheearthandhumanhealth, global consumers and all governments emphasize and pay attention to the developmentofsuch issue.Accordingly,ATENactivelypromotes thegreensupplychainmanagement in order to provide green products without hazardous substances, which is the goal and commitment we continue to execute persistently.

Environmental Sustainability Management PolicyTheenvironmentalpolicyofATEN InternationalCo., Ltd. refers to themissionandphilosophyforsocial responsibilityandenvironmentalprotection.Duringtheprocessofseekingtheprotectionoftheoverallecologicalenvironmentandsustainabledevelopment,inaddition to the improvementandbreakthroughof technologies,wealsoadoptarigorousattitudetoactivelypromoterelevantactivitiesoftheenvironmentalmanagementsystem, implementationofsocial responsibilities forpollutionprevention,creationofanexcellentworkingenvironment,protectionofphysiologicalandmentalhealth,fulfillmentof legal responsibilities, socialobligations,andenvironmentalprotection. Inaddition,thefollowingcommitmentsarealsotreatedasthehighestdirectives for theCompany’senvironmentalmanagementdecisionmaking:1. Implement environmental protection laws: Auditingthe implementationofdirectivesrelatedtoprotectingtheenvironment,andabidingbytheenvironmentalregulationsandrequirementsofsupervisoryagencies.

2. Exploit resource creativity: Userenewableresourceseffectively,reducewasteproduction,andminimizepollutiontothe environment and energy consumption.

3. Continue green production: Regularlycarryingout inspectionsandauditstoensurethecontinuedeffectivenessofenacting company environmental policy and doing our part in protecting a green global village.

Energy Sustainability Management PolicyTofulfillcorporatesocial responsibility, theCompany isdedicatedtoenergysavingandcarbonreduction,andcomplieswith relevant laws inorder toperformenvironmentalpollution prevention, green product design, and continuous improvement in order to achieve theeffectandgoalofenergysaving.Withourcommitment toenvironmentalprotection,ourmethodsfor implementingenvironmentalfriendlinesscontinuouslyareasfollows:1. Periodic review of goals:

Periodically convene management review meetings to review the energy usage condition.

· Implement Environmental Protection Laws

· Exploit Resource Creativity · Continue Green Production


72

Green sustainable product policyWhile facing the threatsofenvironmentalhazardoussubstances to theearthand human health, global consumers and all governments emphasize and pay attentiontothedevelopmentofsuchissue.Accordingly,ATENactivelypromotesthe green supply chain management in order to provide green products without hazardous substances, which is the goal and commitment we continue to execute persistently.

Green Sustainable Product Commitment

Regardingtheprotectionoftheecologicalenvironmentand implementationofthecorporation’sgreenresponsibility, inadditiontoensuringthatproductsandoperations comply with the international standard WEEE codes and environmental protection regulatory requirements, ATEN believes that proper source control is the firstfactorinmitigatingtheenvironmentalimpact.Wearecommittedtoadoptingthedesignfacilitatingrecyclingandenvironmentalprotectionfromthestagesofrawmaterialsacquisitionfromthegreensupplychaintothefinaldispositionofproductsaswellasproductssoldinthemarketcomplyingwiththeenvironmentalprotectionregulatoryrequirementsofdifferentcountries.ForproductssoldintheEU,wealsobeartherecyclingresponsibilityforthemanufacturers,andimplementvarious preventive green management measures, in order to reduce negative impactsofproductdesignproductionandusageprocessontheenvironmentalecology.

With the actual actionof development of environmentally-friendly greenproducts, and through green design, green purchase, green production, and greeneducationmanagementplatform,weareabletoconveythegreenconceptofecologyprotectionandcare for theearth, in lightofachieving thegreencommitmentwithall threepartiesof theCompany,employees,andsuppliersjointly.

•

•

•

•

• •

•

•

•

• •

•

• • •

Green Production and ManufacturingLead-free Production and ManufacturingMonitoring and Measurement Control

Production and manufacturing

Design and development

Green Purchasing

Transportation

Recycle and Reuse

Reduce Disassembly StepsWEEE Recycle PolicyWaste Classification Management

Improve Green Research TechnologyReduce Product Energy ConsumptionEnvironmentally-friendly Product Development

Compliance With Green LawsGreen Supplier ManagementSupplier CSR Management

Reduction of Process Energy

Volume of Transportation Packaging MaterialSpace of Warehouse Packaging Material

3Rs (Reuse, Recycle, and Recovery)


73

ATEN’s Conflict of Material Policy Statement

TheU.S.SecuritiesandExchangeCommission(SEC)passedthe“Dodd-FrankWallStreetReformandConsumerProtectionAct”onAugust22,2012,and inSection1502, itstates the finalprovisionrelatedto thepurchaseof“conflictmaterials”.Basedontheimplementationofcorporatesocial responsibilityand international justiceofATEN,ATENadopts the“ThreeNos”policy, i.e.“Nosupport”,“Noacceptance”,and“Nouse”ofmetalsobtainedthroughillegalminingandharshworkingenvironmentsintheDemocraticRepublicof theCongo (Congo)and its surroundingcountiesand regionswitharmedconflicts.Forthecommonlyusedmetalsofgold,tantalum,tungsten,tin,etc., theGeSIConflictMineralsReportingTemplatespecifiedbytheResponsibleBusinessAlliance(RBA)shallbeused toadoptastandardizedself-managementmethod inorder toprovideacommitment to customers.

Product Hazardous Substance Control Management Measures

Tofulfill theresponsibilityofaglobalcitizen,we integratethecorporatecorevaluesandthemanagementdirectivesasfollows:• Integrity: Purchase green raw materials, implement green production.• Caring: Promote environmental protection education, strengthen environmental protectionawareness,andgoalsforallemployeesandsuppliers,inordertoachievethegoaloftheCompany’ssustainableoperation.

• Ambition: Comply with the environmental protection regulations and customer requirements,becomecustomers’bestgreenproductpartner.

• Novelty: Designgreenproductsandemphasizeproductswithouthazardoussubstances.

Comply with International Product Environmental Regulations

To ensure that the production process and products comply with the international regulationsand customers’ environmentalprotection requirements,ATENcontinuesto pay attention to the international environmental protection codes and directions. Through irregularupdatesofhazardoussubstancerestrictedusecontrol standardsandtheestablishmentoftheprojectof“HazardousSubstanceRestrictedUseManagement”,weclearlyspecify theproducthazardoussubstanceusagestandardandenvironmentalprotection related control requirements, in order to ensure that all products are able to comply with the requirements, demonstrating ATEN's commitment to corporate social responsibility. 2011/65/EURoHS2.0

EU Restriction on Hazardous Substances Directive

2002/96/ECREACHEU Directive on Registration, Evalua-tion, Authorization, and Restriction of Chemicals

2002/96/ECEU Directive 2002/96/EC on Waste Electrical and Electronic Equipment


74

6.4 Environmental Sustainability Management

ATENperiodicallyidentifiestheclimatechangerelatedrisksaccordingtothe“EnvironmentalImpactMitigationandSustainabilityManagementPlatform” inorder toestablish theorganization's internaloperationcountermeasurestandards forenvironmentalchangecausedbyextremeweatherandpossible critical factorsaffecting theoperation.WeadopttheP-D-C-Acycletoperformnormalizationmanagement inordertoachievetheenvironmentalprotectiongoalofenergysavingandcarbonreduction.

Environmental Management System Achievement

In 2006, ATEN introduced the ISO 14001 environmental management system, and in November2017,weobtainedtheISO14001:2015versionofenvironmentalmanagementsystem certification.Wehave started the implementation of the greenhouse gasinventorycheckingoperationsince2010,andat thesametime,wealsoestablishedaninternal inventorycheckingmechanismaccording to the ISO14064-1greenhousegasinventorycheckingstandard, inordertoactivelyperformvoluntarygreenhouseemissioninventory checkingoperations andenvironmentalmanagement, aswell as relatedenvironmentally-friendlyactivities.Wecontinuetoadoptenergysavingplansandenergyusage improvements in order to reduce impacts to the overall environmental impacts, implementpollutionprevention,andimprovementofenvironmentperformance,aswellastheenvironmentalprotectionconceptofemployees.Throughallstaff’sparticipationandcorporatecommitment,weexpecttoachievethegoalsforenvironmentalprotectionandcorporate sustainable development.

ISO 14001 Environmental

Management System

Certificate

ISO1464-1GreenhouseGasInspectionCertificate

Environmental PolicyEnvironmental Goals

and Management

Plan

Implementation and Execution

Training (increase awareness)

Do

Result AssessmentAudit and Review

Check

Prevention and Im-provementCorrection

Act


75

Resource Management Achievement

According to theenergymonitoringand inventory taking result, theenergyusedbyATEN is mainly supplied by Taiwan Power. In the past years, the Company has adopted themethodofprocesscontrol toreducetheenergyconsumptionofthemanufacturingprocess fora long time. In recentyears,wehavegreatlypromoted theenergysavingofprocessingequipment,andcontinueto introduceairconditioningenergysavingandefficiency improvements,aswellasprocessoptimizationmanagementsolutions.Throughthecontinuouspromotionofvariousenergysavingmeasuresandmanagementsolutions,we expect to reduce power consumption and impact on the environment.

Theoverallpowerconsumptionamount in2018was reducedby0.869%from2017.Introducedthe improvementofairconditioningmanagementsolutions, such that theCompanyheadquarterspowerconsumptionwas reducedby18.20%from2017,andthe production amount was increased by 3.51% (in comparison to 2017). Overall power consumption was 3946.8 thousand degrees (equivalent to 14208.6 million joules), the power consumption intensity in 2018 was 5.95. ATEN will continue to pay attention to the enhancementofmonitoringofmanagementsolutions.

(Note:1degreeofelectricalenergy＝ 1kWx1hr＝ 1000Wx3600sec ＝ 3.6x10^6 Joule.)

Strategies and Goals

Slowing Climate Change

Promote various energy saving measures and management solutions withbestefforts,reduceenergyconsumptionandimpactontheenvironment.

Cope With Climate Change

1. Establish process control methods, reduce power consumption generated due to process waiting and pending.

2. Promote process equipment energy saving, introduce power saving equipment(T5andLEDlightingfixtures).

3. Improveefficiencymanagementsolutions(airconditioningenergysaving).• Increasecoldwatertemperature,reduceenergyconsumptionfor

cold water production.• Reset host machine start and stop time, turn on at a later time andturnoffatanearliertime.

2020 Goals

1. Greenhouse gas emission intensity lower than 0.52 (greenhouse gas emission/individualfinancialreportrevenue(NT$million)).

2. Power consumption intensity lower than 5.0 (power consumption in thousanddegrees/numberofemployeesinTaiwan).

ATEN International Co., Ltd. Power Consumption Record Per Year

(including Headquarters and Xiwan Plant site)

Corporate Headquarters

Xiwan Plant Total Power Consumption Amount

Energy intensity(power consumption in thousand degrees/number of

employees in Taiwan)

201620152014 2017 (Year)2018

6.10

5.044.97

6.16

20152014 2016 (Year)2017 2018

3981.08 3946.80

3169.973065.283770.15

2146.87

1623.281687.42 1618.49

2061.47 2376.63

1377.86 1551.49 1919.61 1570.17

(Unit: in thousand degrees)

5.95


76

Water Resource Management Achievement

DuringATEN'soperationandproduction,althoughthereisnoneedtouseprocesswater,theCompanystillunderstandsthatclimatechangeandglobalwarmingarecausingwaterresourcestobereduced,which isanother importantenvironmental impactthatwillbefacedbymankind inadditiontothecurrentenergysavingandcarbonreduction.Facinganenvironmentofgreatpopulationandhighlyconcentrated industrial/commercialdevelopment, thewateroftheCompany iscompletelyprovidedbytheTaiwanWaterCorporation.Toprotectthewaterresourceandtoachievecorporatesustainableoperation,inadditiontotheinformationofwatershortage,theinternalofthecompanyimplementsthewatersavingmeasures,ATENhasalsoinstalledtapsequippedwiththe“Water-SavingLogo”inallofthehand-washingfacilitiesintheCompany,andpromotesthespiritofsavingthesource(assessingthecollectionofrainwateropportunities)andreductionofusage(reducingwaterconsumption)inordertocontinuetopromotethewatersavingmeasures,andeducateemployeesabouttheconceptofwatersaving.

Statistics of Average Water Consumption Per Person in Each Plant Site

Carbon Emission Quantity at Each Plant Site (KgCO2e)

(Unit: KgCO2e)

Notes:Thecarbonemissionstandarduses theCO2emissionequivalentamount foreachdegreeofwaterconsumptionprovidedbytheTaiwanWaterCorporation,andthelatestvalueis0.162kgCO2/degree.

Total Average Water Consump-tion Per Person

Total CO2 Emission Equivalent Amount

50.84

7.88

17.13

2.64

56.59

8.60

44.14

7.15

23.97

3.72

22.73

3.50

25.73

3.91

25.23

4.09

(Unit: degree)

(Unit: KgCO2e)

Average Water Consumption Per Person at Headquarters

Headquarters Water Consumption CO2 Emission Equivalent Amount

Average Water Consumption Per Person in the Xiwan Plant

Xiwan Plant Water Consumption CO2 Emission Equivalent Amount

2015

2015

2016

2016

(Year)

(Year)

2017

2017

2018

2018

(unit: degree)

32.77

5.08

20.96

3.23

36.64

5.57

31.78

5.15

2015

2015

2016

2016

(Year)

(Year)

2017

2017

2018

2018


77

• Application Achievement

Theproduct isof lightweight, thinandcompact,with lowpowerconsumption,andcanbefittedtoany typeofnotebookwithoutanyadditionalpowersupply. Inaddition, it requiresno furtherconfigurationorinstallationofdriversorapplicationprograms,andcanbeuseddirectlyuponplug-in.

• Product Design Core Standards

(1) Structure design: Introductionofscrewlessdesign.(2) Appearance design: Portable KVM controller.(3) LightweightDesign:Ultra type.(4) Function design: Required to supportdevicewithoutover IPKVM.In thecaseof

encounteringanenvironmentwithout internetnetworkaccess, itcanstillbeused.Withouttheneedofadditionalinstallationofdriversfordirectuse.

ATENlooksforwardtoprovidinggreatconvenienceto ITadministratorssuchthatwhenthe internetnetworkislimitedunderharshenvironments(suchasproductionlineormobilenetwork).ITpersonnelarerequiredtobringvarioustoolstothesite,orretrievetheentireequipmentbackforrepair,causingsuchentireprocesstodelayoperationsandbetimeconsuming.IfATENCV211equipmentisused,ITpersonnelareonlyrequiredtouseonenotebookcomputertocompletetherepairwork.“Inanenvi-ronmentwithoutanetwork,itisstillabletomaintainserverswithease”,whichistheobjectiveforthereleaseoftheCV211fromATEN.

Green Product Design Achievement

ATENisagloballeaderinthefieldofdigital informationsharing.Foralongtime,theCompanyhasdevelopedvariousnewandnovelelectronic informationproducts.Withcore technologiesas thefoundation, theCompany implements technology researchcapabilitiesandtheconceptofgreenproductdesignalongwithenvironmentally-friendlyactions inordertocontinueto improveenergyefficiency, therebyachieving thegreenproductgoalsofproductenergysaving, improvementofproductquality,reductionofmanufacturingcost,andshorteningofproductionlineprocessingtime,etc.

ATENcontinues todefine thescopeandnewconcepts forKVM,andhasannouncednovelKVMintegratedmodelsofthenextgenerationforsmallandmediumenterprise level.TheCompanyalsodeveloped the world's smallest Laptop USB KVM Console Crash Cart Adapter (CV211) with the core technology integratingthehardware, firmware,andsoftware,aswellas successfully integratingvariouscoretechnologiesscatteredandappliedindifferentenvironmentsontoonesinglemodel.Theequipment isabletosignificantlysavethetimeof ITengineersandadministrators,especiallyforanenvironmentwithoutinternetnetworkoraccesslimitations,suchthatitalsoimprovesthecompletiontimeandefficiencyfortheexternalpointmaintenanceworkofcomputerequipmentandmachines.ThisisalsoanewbeginningforcoretechnologiesdevelopedbyATENtodemonstrateitsintegrationandfriendlyenvironment.

• Research and Development Benefits

Tosavecosts,usersofcustomersarerequiredtousethetraditionalmovingcartsequippedwithamonitorandasetofkeyboardandmouse toperformthemanagement,and themachine roomadministrators are confinedby themachine room space,maintenancepreparation tools, andequipment, suchthat thecompletionefficiencyof themachineroomadministratorsareaffected.Suchdrawbackshavedrivenustosolvetheproblemsencounteredbythecustomers(users)foralongtime. To overcome such drawbacks,we adopted the basis of combiningthe research concept of ATEN andenvironmentally-friendlydesignalongwith theproduct’soptimized sizeandmaximizedperformanceastheresearchdes ign focus and main d i rect ion.Accordingly, we decided to launch a product that is portable, easy to operate, and thathas anenergy-savingeffect,which is also a startingpoint for theimplementation of our newproductconcept.

Pocket size

File transmission

Plug-and-play

Image recording

Hotkey cluster

Cable clip


78

AfterproductCV211wasimplementedwithvariousrigoroustestsandanalysisverification(fromproductmassproductiontothesaleof2600unitsinthepresentday),thefollowingis calculated:• Product Components-Can be reduced by approximately 1,294,800EA

components.• Product Volume-an be reduced by approximately 761,930 square centimeters.C</7320

• Product Weight-Canbereducedbyapproximately936kg.ItalsoprovesthattheCV211isaperfectsubstitutioncapableofcompletelyreplacingthetraditionalheavycartforcarryingcomputerperipheraldevices intheproduction lineandmachineroomaswellasincreasingtheefficiencyandmobilityofusersandITprofessionals,whichisaresultoftheeffortandcommitmentofATENinenvironmentalsustainability.

Achievement in Product’s Mitigation of Environmental Impact

Tohandle the challengeof environmental changeandenvironmentally sustainabledevelopment,ATENactivelydevelopsenvironmentally-friendlyproductsincompliancewiththeEU’sDirective2011/65/EU&(EC)No1907/2006andtheWasteElectricalandElectronicEquipmentDirective2002/96/EC/(referredtoasWEEEdirective)onFebruary13,2003.Asamanufacturer,ATENbearstheresponsibilityfortheproductrecycling,treatment,andre-circulation.TheproductslaunchedinthemarketareindicatedwithcorrespondinglogosinordertoallowtheproductsofourCompanytoreachtherequirementsforreuse,recycle,andrecovery,therebyreducingthe impactsoftheproductsontheenvironment.Startingfrom2006,wehaveperformedthepreparationof the3RsReportonthenewproductmodelsannually,whichnowcoversallproductsoftheCompany.

• Environmental Contribution (CV211):

CV211 and CN8000A Product ComparisonMaterials List (BOM Form) Comparison

Model

CN8000A CV211

Environmental Contribution

Component Usage Quantity(pcs)

900 402 Component UsageReduced by 55.3%.

ProductDimensions(cm) 20.00 x 8.14 x 2.50 7.05 x 5.37 x 3.01

Sizereductionof72.0%.

Area and Volume (square centimeters) 407 113.95

ProductWeight(kg) 0.49 0.13 Weight reduced by 73.4%.

Product Energy Consumption (W) 7.26 2.35 Energy consumption

reduced by 67.6%.

User Actual Case Example 1 (hash environment aerial operation)

User Actual Case Example 2 (hash environment machine room space)

Previous Report Accumulation

2018 Report

85.71%

14.29%


79

Waste Reduction Management Achievement

WasterecyclemanagementisthefirstpriorityforthegreenproductionofATEN.Facingtheproductionmodelmainly relyingonelectronicproductassemblyandensuringtheachievementofsustainableresourceuseandproperwastetreatment,wecontinuetopromoteresourcereductionandfactorywaste recycling and reuse. Factory reuse is considered in priority in order to allow raw materials to becirculatedforusesufficientlyandtoslowdowntheprocessofdisposalofwaste.Next,therecyclemethod isutilizedtoperform“material recovery”and“energy recovery”withoutanyhazardousindustrialwastes.Forprocesswasteofsolderspatter,wasteplastic,wastepaper,mixedhardware,etc.,aprofessionalandqualifiedtreatmentcontractorthenperformsrecyclingandreuseuniformly,followedbymanufacturingintovariousrenewableproductsforuseinotherproducts.Overthepastyears,ATENhasbeendedicatedtothereductionofwasteaction, inadditiontotheeducationtoallemployeesandstrengtheningofproductionlinewastemanagement,properlabelingofgarbageclassification,notificationandeducationonpropergarbageclassificationactivities intheplant site are also the management method routinely implemented by us.

Notes:AccordingtotheHuan-Shu-Fei-ZiNo.1070029703LetterdatedApril18,2018,forwastegen-eratedfromtheindustrialandemployeeliving,regardlessofwhetherthechangeoperationofthein-dustrialwastecleaningplanhasbeencompleted,itisstilltreatedaswithinthescopeofgeneralwaste,i.e.theenterprise(wastegenerator) isnotrequiredtoreportthedirectionofthewasteaccordingtothe internettransmissionmethodandfrequencyspecified inArticle31of theWasteDisposalAct,butischangedtoadopttheregulationofParagraph6ofArticle6oftheGeneralWasteRecycleandCleaningTreatmentRegulations,inordertohandlethegeneralwastereportofoperationrecord.SinceApril2018,ATENhasstoppedthereportingofthegeneralwasteoutputquantity.

[Statistics on Waste Recovery Management]

2016201520142013 2017 (Year)2018

22.05

21.82 21.9420.76 31.02

47.15

40.38

22.05 21.00 21.45 21.605.10

Industrial andEmployee Living Waste General Waste

(Unit: tons)

Achievement in Protect Environmental Sustainability and Expand Green Influence • Beach Cleaning

Since2012,ATENhasadoptedthebeachinfrontoftheFulongDongxingTempleatGongliaoDistrict,NewTaipeiCity,withaofa lengthof360mwiththe“NortheastandYilanCoastNationalScenicAreaAdministrativeOffice,TourismBureau,MOEA”, toperformthemarineeducationandbeachcleaningactivityinordertocontinueitscommitmenttoearthenvironmentalprotection.Startingfrom2018,toexpandthegreeninfluentialpower,theCompanyhasalsoinvitedexternalstakeholdersandATEN’semployeestojointlyparticipateinthemarineecologicalenvironmentprotectionactivities,andencourages employees and relatives to participate as environmental volunteers, such that the corporate social responsibility is elevated to employee social responsibility. In addition, it also corresponds to the 14thgoalof“marineecology”ofthe17sustainabledevelopmentgoals(SDGs)oftheUnitedNations,inordertoensurethesustainabledevelopmentoftheocean.

[General Industrial Waste Total Recovery Rate]

2016201520142013 2017 (Year)2018

59.12%49.72%49.87%49.74%

68.58%

88.79%

[Beach Cleaning Activity Waste Collection Weight Statistics]

2016

2015

2014

2017

2018(Unit: kg)339.37

310

390

260

110


80

Achievement in Conveying Knowledge on Environment FriendlinessATEN continues to promote energy saving and carbon reduction as well as environmental protection concepts. Internally in the Company, all employees are required to receive educational training and relevant environmental protection and environmental management are listed in the required courses fornewemployees’orientation.Withthe integrationof theCompany’s intranet learningplatform(e-learning),theenvironmentalprotectionawarenessofemployeesisstrengthenedinordertoincreasetheenvironmentalactionofemployees.Inaddition,onallpublicbulletinboards,toilets,elevators,andtheintranetoftheCompanyarepostedwithenergysavingandenvironmentalprotectionslogans,aswell as activity promotion propaganda, in order to increase the environmental protection and energy savingconceptsofemployees,aswellas tostrengthen theemployees’environmentalprotectionawareness.Consequently,employeesareabletounderstandtheenvironmentalprotectionactionsoftheCompanyandareabletodeeplyimprinttheconceptofenvironmentalprotectionintheworkandlifeofemployees.

Externally,ATENactivelypushesforagreensupplychainmanagementbyusingitscorporateinfluencetoworkwithoursupplierstoformulateenvironmentalandsanitationstandards,requiringoursuppliersto implementwaste recyclingand reduction,and tocontrol sourcesof impactsonenvironment.Throughthesharingenvironmentalprotection information,weraisetheenvironmentalawarenessofour suppliersaswellasmeet thedirectiveson the restrictionof theuseofcertainhazardoussubstances.

• Butterfly Habitat Protection

In addition, with regard to the territorial environment ecology protection, since 2012, we have cooperatedwith the“ButterflyConservationSocietyofTaiwan”toperformthebutterflyhabitatprotectionprojectatTaipeiCity JiannanButterflyGarden,by removing foreignplantsofmilea-minuteweedandfragranteupatoriumetc, inordertoprovidetheoriginalgrowthspacetothetreesandflowers.Wealsoimplementtheplantingofnativespeciesofnectariferousplants inordertore-createthebutterflyvillage.Thisalsocorrespondstothe15thgoalof“territorialecology”ofthe17sustainabledevelopmentgoals(SDGs)oftheUnitedNations,forprotecting,recovering,andpromotingthe continuoususeof territorial ecosystems inorder to continuouslymanage forests,preventdesertification,preventandchangelanddeterioration,andsuppressthelossofbiodiversity.

Native Plants and

TreesType Planting

Quantity

Accumulat-ed Planting

Quantity

Rough-leaved Holly

Taiwan’sEndemic Species

62 Plants 515 plants

Chinese Soap Berry

Leopard Flower

DownyRosemyrtle

Ovate-leafTylophora

Red Nan-mu

Slen-der-stalkStar Jasmine

LacquerleafMeliosma

[Accumulated Planting Quantity]

2016

2015

2014

2017

2018

(Unit: plants)

62

145

127

55

66

(AccordingtotheinformationonthewebsiteoftheForestryBureau,CouncilofAgriculture,ExecutiveYuan,theaverageCO2fixedamountperplantoftreeis:5-10kg/year.)

[Ecology Sustainable Planting and Affor-estation Activity]


81

6.5 Greenhouse Gas Inventory Checking Management

ATEN International Co., Ltd. (corporate headquarters + Xiwan Plant) Greenhouse Gas Inventory CheckingBoundary

According to the settingprincipleof theorganizationboundary specified in ISO14064-1:2006international standard and the Greenhouse Gas Protocol (GHG Protocol), the organization boundary isdefined,and thecorrectoperationcontrolmethod isadopted to summarize the facility levelgreenhousegasemissionamountandremovalamount,andtheactualoperationcontrol rangeofATENInternationalCo.,Ltd.fortheperiodfromJanuary1,2018toDecember31,2018,isusedastheboundary.

Address:

City Region Road/Section House No. FloorNew Taipei City

Xizhi District

Section2,DatongRoad

125,127,129,131,133,135,137,139,141,143,145,147,149 3F, 4F, 5F

New Taipei City

Xizhi District

Section2,DatongRoad 137,139,141,143,145 6F

New Taipei City

Xizhi District

Lane 30, Xinjiang North Road 17,20 -

GreenhouseGasEmissionSourceIdentificationSummaryTable

Scope 1Direct Greenhouse Gas Emissions

Scope 2Energy Indirect Greenhouse Gas

Emissions• Transportationofrawmaterial,productandemployee

transportation etc. • Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,perfluorocarbons,sulfurhexafluoride,nitrogentrifluoride,suchasgasolineanddiesel...etc.

• Fugitive Greenhouse Gas Emission Source: Such as septic tank,coolant...etc.

Externally Purchased Power

GreenhousegasinventorycheckingcanbedividedintoScope1andScope2. - Scope1Definition:Directgreenhousegasemission,suchasvehicle,airconditioningequipment,waterdrinkingequipment,powergenerator.

- Scope2Definition:Energyindirectgreenhousegasemission,suchasexternallypurchasedpower.

ATENadoptsarigorousattitudetofullyandactivelypromoteenvironmentalmanagementandrelevantactivities. In 2006, ATEN introduced the ISO 14001 environmental management system, and through actualactionandcompliancewith thegovernment’s relevantenvironmentalprotection lawsandregulations,wealso implementpollutionpreventionand improvetheenvironmentalperformanceandenvironmentalprotectionconceptsofemployees. Inaddition,since2010,wehavestartedtheimplementationofgreenhousegas inventorycheckingoperations.Furthermore,wealsoestablishinternal inventorycheckingmechanismsaccording to the ISO14064-1greenhousegas inventorycheckingstandard, inorder toactivelyperformvoluntarygreenhouseemission inventorycheckingoperations.Wecontinueto implementenergysavingplansand increaseofenergyuseefficiency inordertoreducetheoverallimpactontheenvironment.Moreover,in2018,wehavealsoqualifiedtheISOgreenhousegasthirdparty inspection.Throughtheparticipationofallemployeesandcorporatecommitment,weexpecttoachievethegoalsofenvironmentalprotectionandcorporatesustainabledevelopment.

Risk Considerations

Regulatory Requirements Other Requirements

• Greenhouse Gas Reduction and Management Act

• Greenhouse Gas Inventory Checking

• StakeholderRequirements(includinggovernment,investors,customers, employees, and general public, etc.)

• Green Supply Chain Response to Climate Change

2018 Response Management Measures1. GreenhouseGasRiskMonitoringGroup:Monitortheuseconditionofeachenergyandresource,andreducethecarbonemissionandenvironmentalimpactrisk.

2. EnergySavingandCarbonReductionProjectImplementation:Increaseenergyefficiency,reduceenergy consumption.

3. Promotedatainventorychecking.4. ObtainISO14064-1greenhousegasinventorychecking(qualifyingthirdpartyverification).5. External advocacy and disclosure.6. Transmitgreenhousegasinformationofcarbonreduction,emissionreduction,andshare

greenhouse gas result disclosure with suppliers.

Greenhouse Gas Inventory CheckingATENcomplieswiththerequirementsofthe internationalstandardorganization,andstartingfrom2010,wehave implemented thegreenhousegas (voluntary) inventorycheckingoperations,andestablishtheinternalinventorycheckingmechanismsaccordingtoISO14064-1:2006.Foraperiodofthreeyearsconsecutively,wehavequalifiedthethird-partyinspectionontheemissionamountbytheinternationalBV(BureauVeritasGroup),demonstratingtheeffectiveactionoftheorganization.


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Disclosing Greenhouse Gas Data:ATENhasanopenattitude,disclosinginformationongreenhousegasemissionsrelatedtoATENandenvironmental informationontheplatformoftheCompanywebsite.Wehavedisclosedgreenhousegas inspectionfigureseveryyearsince2010.Eachyear,wedisclosetheCompany’sgreenhousegasinventorycheckinginformationandcontinuetoimplementenergysavingplansandenergyuseefficiency improvement. In2018,wehavequalifiedthethird-partyinspectionbytheinternationalBV,andhavealsosettheyearof2015asthegreenhousegasinventorycheckingbaseyear.

Emission Source 2015 (base year)

Stationary Combustion (purchased externally) 1730.5751

Movable Combustion 9.2633

Stationary Combustion 0.466

Non-standard Fuel Combination and Dissipation 22.44

Non-standardfuelcombinationanddissipation 41.3658

Total 1804.1102

(Unit:tonsCO2e/year)

Greenhousegasquantificationprinciple,use theemissionquantityofeachgreenhousegasemissionsourceforcalculation,andthe“dischargecoefficientmethod” isadopted.Accordingtodifferentsourcesofvariousgreenhousegasemission,theunit isconvertedintotheweightandvolumeunitoftonorkiloliter.Foreachemissiongenerationsource,accordingtothecalculationofthe“GreenhouseGasInventoryCheckingResignationForm3.0.0(revised),andgreenhousegasemissionquantitycalculationispreformedaccordingtothedischargecoefficient.Afterselectingthedischargecoefficient,accordingtotheglobalwarmingpotential (GWP)foreachtypeofgreenhousegas inthefourthannouncementin2007,allofthecalculationresultsareconverted intoCO2e(carbondioxideequivalentvalue),andtheunitisinton/year.

Accordingtotherequirementsof ISO14064-1Standard, theoperationboundaryoftheCompany is covered by the direct greenhouse gas emission source (Scope 1), and the energy indirect greenhouse gas emission source (Scope 2). In 2018, the greenhouse total emission quantity was 2,413.406 tons CO2e. Each scope and the seven main greenhouse gasesemissiontotalquantityareasshowninthefollowingtable:

2018 Greenhouse Gas Emission Total Quantity• GreenhouseGasEmission InventoryCheckingPeriod:January1,2018-December31,

2018• Organization Greenhouse Gas Emission Base Year: 2015• Greenhouse Gas Emission Total Quantity: 2,413.406 tons CO2e, including

- DirectGreenhouseGasEmissionQuantity(Scope1):226.8776tonsCO2e - Energy Indirect Greenhouse Gas Emission Quantity (Scope 2): 2,186.5275 tons CO2e

• Other Indirect Greenhouse Gas Emission Quantity (Scope 3): 0.0000 tons CO2e


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Achievement in Greenhouse Gas Reduction

In2019,ATENwillcontinuetomonitorcarbonemissions,andalsoestablishedthegoalofgreenhousegasemissionintensitylowerthan0.52(greenhousegasemission/individualfinancialreportrevenue(NT$million))by2020.

ATEN International Co., Ltd. (including the headquarters and Xiwan Plant Site) Carbon Emission Quantity Record according to Scope 1 and Scope 2 standards is disclosed asshowninthefollowingtable:

[Greenhouse Gas Emission Intensity]

2015 2016 (Year)2017 2018

0.54

0.70 0.6720.57

Scope1andScope2EmissionQuantity/IndividualFinancialReportRevenue(NT$million)

[Scope 1 Greenhouse Gas Emission Quantity] [Scope 2 Greenhouse Gas Emission Quantity]

2015 2016

96.6721

(Year)2017 2018

414.812

226.8776

73.535134.2132

38.3858

38.3135376.4262

188.5641

62.458934.965138.57

Xiwan Plant Greenhouse Gas Emission Quantity

Headquarters Greenhouse Gas Emission Quantity

CO2e (tons) CO2e (tons)

2015 2016

1637.7457

(Year)2017 2018

1947.3775 2186.531730.5751

819.1846 856.8616 869.875

1090.5159 1316.65854.5611

839.5982

830.6769

Xiwan Plant greenhouse gas emission quantity

Headquarters Greenhouse Gas Emission Quantity

Supply Chain Management7.1 Sustainable Supply Chain Management

Action and Goals7.2 Sustainable Supply Chain Management

Standards7.3 Sustainable Supply Chain Management

Strategy and Goals7.4 Supply Chain Management Performance7.5 Sustainable Supply Chain Common

Growth Plan

84

7. Supply Chain Management

85

Major Topics

Supplychainmanagementisnotamajortopic,andthissectionisadditionalinformationdisclosure.


ATEN upholds the corporate core value with a sustainable attitude to construct new partnerships with suppliers. We clearly understand that joint cooperation with suppliers is important to thecompletionofsustainablegoals,includingcontinuousimprovementofthesocialresponsibilityawarenessofsuppliersinordertograduallyachievethesustainabledevelopmentdirectionandgoals.ATENwillcontinuetoexploitourinfluentialpowertopromotethecorporation’ssustainableconceptandmethodstothesupplychain.

Achieveahazard-freeenvironmentmanagementforchemicalsandallwasteintheentireexistencecycle,andgreatlyreducetheprobabilityoftheiremissionintotheatmosphereandinfiltrationintothewaterandsoil,inordertominimizetheirnegativeimpactonhumanhealthandtheenvironment.[CorrespondingtoSDGsSection:12.4]

Toreducetherawmaterialsupplyinterruptionrisk,werequestsupplierstoprovideasafeandhealthyworkingenvironment,andmitigatetheimpactofclimatechange.Throughonsitefieldassessmentmechanisms,ensurethattheaspectsofonsiteworkingenvironment,environmentaffectedsourcecontrol,wastemanagement,regulatorycompliance,andgreenhousegasmanagement,etc.areintheproperdirection,inordertoimprovethesustainableabilityofsuppliers.[CorrespondingtoSDGsSection:13.3]

Toguaranteetheequalityoftherighttoworkofdifferentgenders,weimplementtheeliminationofgenderdiscriminationaccordingtotheConstitution,promotethespiritofgenderpositionsubstantialequality,ATENactivelyexploitstheinfluentialpowerinthesupplychain,andestablishesvarioussustainabilityprovisionsandstandardsintermsofthemanagementstrategy,activelyconveyinginformationtosuppliers,andfurtherincorporatingrelevantrequirementsintotheassessmentitems,aswellasintegratingwiththepurchasingtoidentifycorrespondingmanagementmechanismsandrisksaccordingtodifferenttypesofsuppliers.Throughcompleteandcontinuousstrengtheningofsupplychainmanagement,welookforwardtofulfillingcorporatesocialresponsibilitywithsuppliersjointly.[CorrespondingtoSDGsSection:5.c]


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Adopt Action (Action) Including improvement within time-limit and terminationofpurchaseagreement.


Commitment 2018 Execution item 2018 Execution Outcome

Future Goals and Actions

Strengthening supplier’srecognitionofcorporatesocial

responsibility.

Supplierriskandassessmentcontrol mechanism, strengthened “social participation and contribution” and “gender equality right policy” and “environmental protection energy saving and carbon reduction” with enhancement and implementation achievement rateof100%.

Class A suppliers assessed accountedfor94.12%.

By 2025, jointly implement corporate social responsibility (Responsible BusinessAllianceCodeofConduct) with suppliers.

Implementation ofGreenSupplier

Assessment System

Greenriskassessmenttoensuretheworkingenvironmentsafety,employeewelfare,businessoperationenvironmental protection, as well as morality and ethics, with the assessment achievementrateof100%.

In 2018, there were 59 new suppliers,andthegreen/sustainablesupplierriskassessment was conducted completely on all suppliers with an achievement rate of100%.

Supplier’sComplianceWith International

Environmental Protection Laws

For new suppliers, they are requested to comply with the international environmental protection regulatory requirements, including RoHS 2.0 and REACH SVHC 191 items. (All 56 new suppliers complied with the requirements)

Existing suppliers (89%), new suppliers (11%), total responserateof100%.

Green Supply, Sustainability Commitment

Regarding theprotectionof theecological environment and implementationof thecorporation’sgreenresponsibility, inadditiontoensuringthatproductsandoperationscomply with the international standard environmental protection regulatory requirements, ATENbelieves thatpropersourcecontrol is the first factor inmitigatingenvironmentalimpact.Wearecommittedtoadoptingadesignfacilitatingrecyclingandenvironmentalprotectionfromthestagesof rawmaterialsacquisitionfromthegreensupplychaintothefinaldispositionofproductsaswellasproductssoldinthemarketcomplyingwiththeenvironmentalprotectionregulatoryrequirementsofdifferentcountries.ForproductssoldintheEU,wealsobeartherecyclingresponsibilityforthemanufacturers,andimplementvariouspreventivegreenmanagementmeasures, inordertoreducenegative impactsofproduct design production and usage process on environmental ecology.

With theactual actionofdevelopmentof environmentally-friendlygreenproducts,and through green design, green purchase, green production, and green education managementplatform,weareabletoconveythegreenconceptofecologyprotectionandcarefortheearth,inlightofachievingthegreencommitmentwithallthreepartiesoftheCompany, employees, and suppliers jointly.

Responsible Units

ATEN Corporate Social Responsibility Management Committee － Green Operation Group


Enterprise Sustainability (Plan) Guide supplier to plan and implement plans and assessments.

Risk Assessment and Control (Do) Sourceriskcontrol.

Inspection Confirmation (Check) Inspectionofcorporatesustainabilityimplementationlevel.


Green Supplier Assessment System (100% Presentation)

Newsuppliergreenriskassessment toensuretheworkingenvironmentsafety,employeewelfare,business operation environmental protection, as well as morality and ethics.

In2018, therewere59newsuppliers, and thegreen/sustainable supplier riskassessmentwasconductedcompletelyonallsupplierswithanachievementrateof100%.

Conflict Material Declaration Survey

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7.1 Sustainable Supply Chain Management Actions and Goals

Comply With International Environmental Pro-tection Laws

ATENupholdsthecorporation’scorevalueandisdedicatedtothepromotionofthepositivegrowthof suppliers.Throughcontinuous improvementof the suppliers’ social responsibilityawareness,includingthesafetyoftheworkingenvironmentandtoconveythesuppliercodeofconductconcept,we invite suppliers to jointly respond to the global sustainability policy in order to gradually achieve the sustainable development direction and goals. ATEN adopts regular and irregular onsite inspection and visit activities according to the “Supplier Assessment Regulation Standard Operation Procedure”. Inaddition, throughonsite field inspectionsand interviews,wefurtherunderstandthesuppliers’understandingofregulationsrelatedtosustainability,andalsosharethecorporation'scorevalueandbusinessphilosophyofATENinordertoassistsupplierstointegratesuchconceptintothecorporateculture and to grow jointly with the suppliers.

TherawmaterialspurchasedbyATENcanbegenerallyclassifiedintochips,switchers,connectors,PCboards,productchassis (materialsofmetal,plastic,etc.),cables,electroniccomponents,packagingmaterials, and other materials, equipment, and automated products, etc. To strengthen the cooperationwithsuppliers,ATENdevelopedenvironmentally-friendlygreenproductsthroughgreendesign inorder to improve the technologyandqualityofsuppliersandreduceunnecessarycostsofsuppliers.Consequently,uponensuringqualityandperformance,weareabletoreducecarbonemissions.

Toconveytheconceptinthefuture,wewillcontinuetoadoptvariousofficialandnon-officialchannelsto share our corporate ethics and values with suppliers. With regard to management actions, we will strengthentheimplementationofsuppliermanagementprocedureinordertoincreasethesuppliers’irregular inspection rate, and continue to strengthen the human rights policy implementation.

Strengthen Corporate Social Responsibility Recognition

Existing supplier riskassessmentandidentif ication control mechanism,strengthening”monitoringofincomingquality”, “social participation and contribution”, and “gender equality r ight pol icy” and “environmental protection energy saving and carbon reduction”. Class A suppliers assessed accountfor94.12%.

ClassD

Class B

Class C

Class A

0.56%

1.52%

3.80%

94.12%

0% 40% 80%20% 60% 100%

SupplierRiskAssessmentandIdentificationControl Existing Suppliers

New Suppliers

89%

11%

75%

Electronic Components

Process Auxiliaries

Mechanical Components

Semi-finishedProducts and Finished Products

15%

6%4%

Comply with international environmental protection regulatory requirements, including RoHS 2.0 and REACH SVHC 191 items.

Existing suppliers (89%), new suppliers (11%), total responserateof100%.

“GeSI Confl ict MaterialSurvey Form”, a total 325 suppliers were surveyed, and the response rate was 100%.


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7.2 Sustainable Supply Chain Management Standards

Supply Chain Management Strategy

Toeffectively improvethesuppliers’sustainableconceptandtoensuretheservicesandproducts provided by suppliers comply with the “Supply Chain Management Regulations” and requirementsofATEN,weestablished theprocessplanning for the supplychainmanagementstrategyasfollows:

First, fromthenewsuppliers introducedearlier,keysuppliersare identifiedbythesystemaccordingtothe industrytype.Withstrengtheningofmanagementandthroughqualityand system, development and equipment, production and capacity, operation and service, environmentandhealth,etc., thesupplier riskandassessmentcontrolmechanismsareimplemented. Inaddition,withcontinuous strengtheningofmanagementdepthandimplementation level,we look forwardtoachievingawin-winsituationwithsuppliersjointlyalongwiththeconsiderationofcorporateprofitandcorporatesocialresponsibility.

Toimplementandstrengthenthesuppliers’levelofrecognitionofcorporatesocialresponsibility,ATENintroduces the ISO international standard management system, and uses “social participation”, “gender equalityrights”,and“energysavingandemissionreduction’astheriskassessmentinfluentialfactorsinthesupplierriskandassessmentcontrolmechanism,inlightofeffectivelycontrollingthepurchasequalityandcost,etc. throughATEN's influentialpower incorporatesocial responsibility, therebygraduallyenhancingthesuppliers’emphasisontheaspectsofhumanrightsand laborconditions,healthandsafety,environmentalprotection,regulatorycompliance,andbusinessethics,etc.

7.3 Sustainability Supply Chain Management Strategy and Goals

ATEN integrates traditional supply chain (quality, service, delivery date) management with the concept ofenvironmentalsustainability.Fromthesupplierriskassessmentandcontrol,differentkeysuppliersofdifferentrisksareidentifiedaccordingtotheindustrytype.Throughthesupplierriskandassessmentcontrol mechanism, strengthen and improve the management depth and implementation level, in light ofachievingawin-winsituationwiththesuppliers jointlyalongwiththeconsiderationofcorporateprofitandcorporatesocialresponsibility.

Risk Assessment and Identification Mechanism

Type Regularly Irregularly

Frequency Monthly and Semi-annually Irregularly (onsite inspection and visit)

Evaluation Level

Class A: 90 ≦ Score ≦ 100 Class B: 75 ≦ Score < 90Class C: 60 ≦ Score < 75ClassD:Score<60

Class A: 90 ≦ Score ≦ 100 Class B: 75 ≦ Score < 90Class C: 60 ≦ Score < 75ClassD:Score<60

According to the (monthly and semi-annually) regular assessment and inspection method, screen out andselectoutstandingsuppliersforrewards.

New Supplier Early-stage Introduction

Continuous Improvement

or Cancellation ofQualification

RiskAssessmentand Control


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Supply Chain Management Progress

Past Past Past Present Future

Supplier’sBasicRequirements

Released Green Supplier Purchase

Policy

EnhancedSupplier’sCorporate Social

Responsibility

Sustainable Supply Chain Management

Joint Implementation ofCorporateSocial

Responsibility

2013+SatisfiedISO

9001 quality management requirements.

2015+Complied with andsatisfiedthe

international environmental

protection laws.2016+

Added “corporate social responsibility assessment items”.

2017+Deployedsupplierimpactandrisk

survey.

2018+Sustainable supplier impactandrisk

survey complying with relevant green

environmental protection laws.

2025+Responsible Business AllianceCodeof

Conduct

Supplier Management Goal (2019)

• Identifysupplier'ssocialresponsibilityawarenessandexecutionstatus15%.• Field assessment and identify supplier’s social responsibility awareness

achievement rate 100%.

• New suppliers shall comply with the international environmental protection

laws 100%.

• 2020 identify supplier’s social responsibilityawarenessand implementationstatus 40%.

• By 2025, jointly implement the corporate social responsibility (responsible

commercialalliancecodeofconduct)withsuppliers80%.

Compliance Standards

To ensure the products provided by suppliers comply with the international environmental protection laws, fortheexistingsuppliers, relevant restricted materials and requirements are inspected thoroughly, and suppliers are requested to sign the green and corporate social responsibility declaration.


Improvement within the time-limit. For suppliersidentifiedto be subject to anyconcernofviolating quality and environment or corporate social responsibility, such suppliers are requested to improve within the time-limit, submit written a report, and accept irregular inspections and guidance.

RiskAssessment

Irregular inspection. According to ISO 9001 and ISO 14001 standards, in addition to irregular inspections and guidance on the quality, cost, and delivery date managementofthe suppliers, the international environmental protection regulations shall be complied with and the supplier corporate social responsibility shall be implemented.

Supervision and Responsibility

Forsuppliersfailingto improve properly within the time-limit, the supplier qualificationiscanceled.

Supply Chain Management Process


90

7.4 Supplier Chain Management Performance

ATENstrengthensthe inspectionofvarioustypesofsupplierswithasustainableattitudeviaregularandirregularfieldinspectionsandvisitactivities,inordertoimprovethesuppliers’socialresponsibilityawareness. Inaddition, throughtheonsite field inspectionsand interviews,weareable tofurtherunderstandthesuppliers’understandingrelatedtosustainability,andtosharethecorporatecorevalueandbusinessphilosophyofATEN,therebyassistingsuppliersto incorporatesuchconcepts intotheircorporate culture, and to grow jointly with the suppliers.

Strengthen Corporate Social Responsibility Recognition

Suppliers Assessment:Existingsupplier riskandassessmentcontrolmechanism,strengthening”monitoringof incomingquality”, “social participation and contribution”, “gender equality right policy”, and “environmental protection energy saving and carbon reduction”.

Thesupplierriskandassessmentcontrolmethodisdividedintothefirsthalf/secondhalfoftheyear.In2018,ClassAsupplierassessmentsaccountedfor94.12%.

Forsuppliers(ClassC,D)identifiedtobesubjecttoanyconcernofviolatingqualityandenvironmentor corporate social responsibility, such suppliers are requested to improve within the time-limit, submit awrittenreportandacceptirregularinspection.Duringtheguidanceperiod,suppliersarerequestedtoproperly complete the improvement according to the requirements.

Expand Environmental Sustainability Influence

Invite suppliers to participate in environmental protection activities:To respond to the 2018 international beaching cleaning day, on September 14, ATEN invited suppliers to jointly participate in the largest ocean protection action, such that during the contribution with effort,participantswereabletoalsoexperiencethedifficultyoftheocean; inaddition, instructionfromtheSocietyofWildernesswasinvitedtoprovideexplanationonoceanprotection.

First Half Year Supplier Assess-ment

Second Half Year Supplier Assess-ment

Class A

Class C

Class B

ClassD

0.70%1.10%

3.00%

95.20%

0.40%1.90%

4.70%

93.00%


91

Electronic components

Process auxiliaries

Mechanical components

Semi-finishedProductsandFinished Products

Conflict Material Declaration Survey

Conflict Material CMRT 5.10 Version Survey:TocopewiththeATEN’sConflictMaterialPolicyStatementandtheexpectationsofsuppliers,thesuppliersarerequestedtocooperatewiththefollowing:1. Request suppliers to conduct reasonable due diligence on the supply chain in

order to ensure that the materials provided by the suppliers to ATEN contain no conflictmaterials.

2. RequestoursupplierstoinformimmediatelyinthecasewherematerialsprovidedtoATENuseconflictmaterials.

3. Requestthesupplychaintofurthercomplywiththecustomerdemandsandtheimplementationofinternationaljustice,understandsuppliersindepthontheirconflictmaterialmanagementstatus,andperformsurveysaccordingtotheResponsibleBusinessAlliance(RBA)“GeSIConflictMaterialSurveyForm”.

Green Supply Assessment System

Green Risk Assessment:Toensure thesafetyof theworkingenvironment,employeewelfare,businessoperationenvironmentalprotection,aswellasmoralityandethicsofsuppliers,new supplier’s green/sustainable supplier risk assessment are conducted.AccordingtotheISOdocumentofSupplierManagementProcedure(QP-024)andSupplierAssessmentRegulations (QI-008), thesupplier’sfieldandwrittengreenriskassessmentareevaluated.Inaddition,thesafetyoftheworkingenvironmentof the supplier, employeesbeing respectedwithdignity,businessoperationenvironmental protection, and compliance with morality and ethics are ensured.

For the59newsuppliers,andthegreen/sustainablesupplier riskassessmentswereconductedcompletelyonallsupplierswithanachievementrateof100%.

Comply with International Environmental Protection Laws

For suppliers complying with the international environmental protection regulatory requirements, includingRoHS2.0andREACHSVHC191items,suppliers’greensurvey was conducted.

All of thematerials provided by suppliers complywith the internationalenvironmental protection regulatory requirements.

75%

4%6%

15%


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7.5 Sustainable Supply Chain Joint Growth Plan

Purchase Non-Conflict Material Raw Materials

BasedontheimplementationofcorporatesocialresponsibilityandinternationaljusticeofATEN, ATEN adopts the “Three Nos” policy, i.e. “No support”, “No acceptance”, and “No use”ofmetalsobtainedthrough illegalminingandharshworkingenvironments intheDemocraticRepublicoftheCongo(Congo)anditssurroundingcountiesandregionswitharmedconflicts.Forthecommonlyusedmetalsofgold,tantalum,tungsten,tin,etc.,theGeSIConflictMineralsReportingTemplatespecifiedbytheResponsibleBusinessAlliance(RBA)shallbeusedtoadoptastandardizedself-managementmethodinordertoprovideacommitment to customers.

While facing the threats of environmental hazardous substances to the earth andhuman health, global consumers and all governments emphasize and pay attention to thedevelopmentofsuch issue.Accordingly,ATENactivelypromotesgreensupplychainmanagement, implements corporate green responsibility, and actively promotes the green environmental management system. In addition to ensuring that products and operations complywith theenvironmentalprotection laws,we insistonusingrawmaterials fromthe green supply chain in order to provide green products without hazardous substances, which is the goal and commitment we continue to execute persistently.

Implement Green Supply Chain Management

Supplier’sCorporateSocial Responsibility

Implementation Level

SelectSuppliersofGreen Components

Supplier Assessment Inspection

Convey Corporate Core ValueWithregardtoATEN’scooperatecorevaluesof“Integrity”,“Caring”,“Ambition”,and“Novelty”, through the sustainable supply chain management standards and strategies, thesuppliers’corporatesocialresponsibilityawareness isenhanced,andtheconceptofsustainable action standards is conveyed to the suppliers, such that suppliers are able to complywithrelevantmanagementsystemsandthecodeofconductforlabor,healthandsafety,environment,ethicalstandards,etc.

Protect Environmental Sustainability and Expand Green Influence

Suppliersare importantpartnersofATEN inpromotingCSR.Since2017,theCompanyhas invitedsuppliersto jointlyparticipate intheFulongBeachCleaningActivity.Despitethatfactthatthenumberofvolunteersnecessaryfortheactivitywas limitedsuchthatnot all suppliers were invited to participate together, nevertheless, this concept was able toreceivegreatfeedbackfromthesuppliersinvited.Consequently,webelievethatATENisnotaloneinthepathofpromotingCSR,andwehavethefaiththatsuchconceptofgoodness will continue to expand, such that more companies, organizations, or individuals will jointly protect our environment and achieve ATEN's commitment in environmental sustainability.

Customer Satisfaction and Service8.1 Complete Customer Service System

8.2 Global Customer After-sales Service

Satisfaction Survey



8.5 Information Security and Customer

Privacy Protection

93

8. Customer Satisfaction and Service

94

Major Topics

Service Quality, Customer Partnership

Forownbrandpromotion,itisnecessarytoestablishonthebasisofcustomersatisfactionandachievingthemostoptimalprofessionalservice.UnderthemainbusinessmodelofB2B and a competitive environment, we need to understand where our customers ae, andmostimportantly,weneedtoknowwhatthecustomerdemandsare,andhowthesedemandscanbesatisfied. In2016,weselectedonecountry inAsiaandEuropeeachfortheproA/V line,andperformedaseriesofcustomer interviews.Undertheassistanceoftheprofessionalbrandconsultant,wewereabletoeliminatethepastburdenandexistingopinionsinordertolistentotheexistingcustomersandfuturepotentialcustomersopinionsonourproducts,services,marketing,brandpositioning,etc.Throughstatisticsandanalysis,we summarized the things caredabout themostby customers into themeaningfulMOT(MomentofTruth). In2017, thecompanyexpandedtheproduction line toKVMSwitches.ThroughtheunderstandingofdifferentproductionlinesonMOTsanddiscussion,weadopted thecustomer-orientedapproach,andafter sufficientlyunderstanding thecustomerdemands,wedevelopedacustomercombinationandserviceplatformwithinnovative value and competitive capability. In 2018, we provided complete online productknowledgetechnologyeducational training inorder touseasystematicsystemto introducetheproduct technologyknowledgeofeachproduct lineofATEN,productspecifications,andcharacteristics,aswellasmarketapplicationexamples. inaddition,wealsoorganizedglobalbranchtechnicalsupport fullproduct linephysicalcoursetrainingat theheadquarters inorder tocultivatetechnicalstaffwiththoroughandprofessionaltechnicalproblem-solvingabilities.Providinghighqualityproductsandservicessatisfyingcustomersareourkeytosuccess.

Global Customer Service Mission: Dedicated toproviding

excellent global service operation, most optimal service quality,

and customer experience.

Learning and Im

pro

vemen

t

S

ervi

ce M

anag

emen

t Stra

tegy

EmployeesofProfessional

Quality

Most Optimal PerformanceProfessional

Service

OptimizedService System

HighEfficiencyService

Operation

Continuous Quality Improvement


95

8.1 Complete Customer Service System

Under the existingpolicy for globalmarketing, the customerservicenetworkofATENexpands tovariousoverseas locations.Weestablished the“GlobalCustomerServiceDivision” in theheadquarters in order to integrate all customer service resources andtoensuretimelyandprofessionalcustomerservices,sustainableoperationofcustomerrelationships, thereby improvingcustomersatisfaction.

Specific service system is described in the following:

Customer Service Direct Line

To allow customers to submit requests in a timely manner and to obtain support immediately, we established the customer service direct line system, provide the 0800 direct line, technical direct line, etc. in order to allow professionaltechnicianstocommunicatewithcustomersdirectlyandtoassistcustomerstoovercomeproblems.ToprovidegreaterlocalserviceforthemarketinChina,in2014,weestablishedthe“ChinaCustomerServiceCenter”,andprovidedthedirectlineof400-810-0-810(400-ATEN-LOVE-ATEN).Inaddition,in2017,wefurtherestablishedthepre-saleproductconsultationprofessionalservice inadditiontotheafter-salesservicewindow.“ChinaCustomerServiceCenter”providesend-user technical services,anduses themarketing functionalplatformforpositioning inorder toestablishandrigorously implement the“FirstAskingDutySystem”and“CustomerQuestionClassificationandPriorityHandling”regulationsinordertoensurethatcustomerdemandscan be replied to and resolved within the shortest time.

Technical Questions

Product Sales Questions

Customer Complaint

Coordination

Repair Progress Inquiry

ClientsCustomer Service

CenterHandling of First

Line Troubleshoot-ing Questions

Third Line of Troubleshooting

Support

Second Line of Troubleshooting

Support

Nationwide Technical Support

Engineers

Nationwide System of eSupport

Repair Center Repair center

China Business Unit

China Business Unit

HQ Q & RD

Global Customer Service Center

• Technical Support Department

• Customer Service Supporting Department

• Customer Service Management Department


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Online Service Platform (eService)

Online Technical Support Service (eSupport)

Whenourcustomersworldwidearemetwithproblems inusingourproductsandseekservice forhelp,ATEN technicalpersonnel canuse theeSupportnetworkplatformtoundertakedirectand rapidcommunicationwith them,effectivelyassistingcustomersworldwide to resolve technical problems, eliminating obstacles, and providing all required information.Every inquiry is recorded in theeSupportplatformtofacilitatesubsequentfollow-up.Key issues are also recorded as FAQ (FrequentlyAskedQuestions) or aknowledgebasewhich isrecordedontheeServiceplatformforcustomers’ inquiriesandsharing.Startingin2018,inadditiontothetextformofFAQ,educationalteachingvideosfor installationandoperationFAQarealso furtheraddedonto theeServiceplatformsubsequently.

In addition, we also developed the mobile “ATEN Online Customer Service APP”, a small yetexceptionalAPPthatprovidesasetofuseful tools tohelpclients tosolvequestionsaboutselectingproducts,technical information,andonlinecustomerservice. It isabletoassistcustomerstosolvequestionsrelatedtoproductselection,technicalinformation,andonlinecustomerservice inordertoprovideabrand-newcustomerexperienceofutmostconvenience.

Themain functionsof theATENOnlineCustomerServiceAPPinclude:Productselectionwizard/ProductFAQ/Producthotkeyandcompatibilitylistinquiry/Establishnewcustomerservicerequestformon theAPP/Inquiryand response informationof request formtocustomerservice/Requestformcanbeuploadeddirectlythroughthemobile phone camera.


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Online Repair Service Global-RMA System

By fillingoutanonlineapplication form, customers can request repair service.OurdedicatedRMA(ReturnMaterialAuthorization)professionalswillthenreceivetheformandprovide an RMA code and delivery address. Customers can obtain a product's warranty informationand real-timemaintenanceprogress information throughonline records.Theycanalsoaccessrecordsofpriormaintenancesoastoconveniently retrieverelevantinformationregardingrepairingandmaintenance.This isasystemwithacompleteRMAprocess,throughwhichmaintenancerecordsfromallovertheworldareobtained,furthermonitoring product quality. RMA Rate Reports are produced and sent to the relevant departments every month to propose improvement strategies.

Search for Frequently Asked Questions FAQ

Accordingtothestatistics,themonthlyaveragenumberofFAQwebsitebrowsinginquiriesin2018was20,525 times,an increaseof28%fromthemonthlyaverageof14,654times in 2017. This means that the service has been widely used by customers, and also demonstratesthatmanycustomersworldwidehave improvedtheirunderstandingoftheproduct operation through such service. For ATEN and customers, this is the most economic method.WewillcontinuetoprovidemorecompleteFAQswithourbesteffortinordertosatisfycustomers’needstoovercomeproblemsthemselves.

RMA

Browsing Times Average

14334

31246

19089

24318

1846817156

20027

30571

1588316813

21761

16632

Jan Feb Jun OctMar AugJul Nov Dec (Month)

(Times)

Apr May Sep

20525

[2018 FAQ Browsing Statistics Table]

End Customers Agents/Distributors ATEN Branch

Product RMA Demand

Global RMA System

e-SupportGlobal RMA

(Multiple Site Repair Center)

Product RMA demand

Generate RMA Form Number

Confirm Transportation Method

RMA Request Form

RMA Administrator

Delivery Note Status

Logistics

Shipping Arrangement

ShippingPackagingRepair

Product Receiving

SAP

Automatic Repair Assignment

Component Inventory Account Offset/Return

Bill Export Invoice Export Packing List

Management Report

RMA Analysis Report

Cost Analysis Report


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Partner Center

ATENalsoprovidessalespartnerswithreal-timemarket intelligenceandproductinformationbyestablishingan information sharingplatformaimedat salespartners, so as to allow our distributors worldwide to utilize resources on the sharingplatformtoprovidethemostsupremeservicetoendcustomers.

Global RMA Replacement and Repairing Service System Structure

Perfect After-sales Service and Product GuaranteeToprovide localandfastafter-salesservice tocustomers invarious regionsworldwide,ATENestablishedtheglobalcustomerserviceunit,dividedintotwomainunitsof“TechnicalSupport” and “RMA” in the headquarters in Taiwan and all overseas branches. When customersare facedwithproblems inusing theirproducts, theycan seekassistancethrough the customer service direct line. Customers are promptly assisted to eliminate their problemsbyprofessionaltechnicalsupportengineers.Ifacustomer’sproductisdiagnosedbythetechnicalsupportengineertohavetheneedforrepair,theproductcanbedeliveredtoanyoneofthetechnicalsupport locationsworldwide,andanRMAengineercanthenbegin inspection and repair.

Twoyearsofwarranty service isprovided forATEN'sproducts. ForA+models,ATENprovidesthreeyearsofwarrantyserviceandARservice(submitfirstandreturnlater)qualityservice (adjustmentswillbemadetosomecountries). Inaddition, thestrengtheningofafter-salesservicewith localsupport isthemost importantdirectionto improvecustomersatisfactionandglobalbrandpromotion.

Fast Repairing ServiceThroughthewell-developed,comprehensiveservicenetworkoftheCompanyheadquartersandsubsidiaries,wemanage toofferTAT (Turn-Around-Time) threeworkingdays fastrepair service inAsiaPacificandTAT fiveworkingdayservice inEuropeandAmerica,cuttingthewaittimeforclientsandgainingwidespreadapprovalandrecognitionamongour customers.


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8.2 Global Customer After-sales Service Satisfaction Survey

The“GlobalCustomerServiceDivision”ofATENconducts the“GlobalCustomerAfter-salesServiceSatisfactionSurvey”onaregularbasis,usingcomprehensive,continuedfirst-handfeedbacktounderstandclientexperiencesandto improveourservicesaccordingly.Foritemsnotyetcompleted,wealsoperformin-depthanalysisandestablishaninspectiontrackingmechanisminordertoensurethatcustomerdemandsareresolved. Inthepasttwoyears, theaverageoverall customer service satisfactionwas84%,and in2018,theactualoverall customerservicesatisfactionwas89%.Thecustomers’opinionwillcontinuetobetransformedintothedrivingenergyforourreviewandimprovement.When

satisfactionfeedback isworsethantheexpectation,wewillperformunderstandingandrequest improvement immediately. In addition, ATEN also establishes two-way and diverse customercommunicationchannels,suchas:productboxequippedwithfeedbackform,repairreportequippedwithcustomersatisfactionform,allregionalwebsitesworldwideareprovidedwithacustomerfeedbacksection,andtheCompanywebsiteisavailableinmorethan12languages,andcontactemailaddresses,etc.,suchthatcustomers’requestscanberesponded to and supported in the shortest time. With such establishment, we are able to strengthentherelationshipoftrustbetweencustomersandATENinordertoimprovethecustomers’royaltyandbrandtrust.

[2018 Global Customer After-Sale Service Satisfaction Survey Statistics]

TW

2017 OverallCustomerServiceSatisfaction Goal 2018 OverallCustomerServiceSatisfaction

HQ CN JP KR US BE UK

89%81% 83%81%

88%82%

75%81%

97%

80%

98%93%91%

86%90%89%

0

50

60

70

80

100

(%)

90

40

30

20

(Country)


100


Startingfrom2017,ATENhasprovidedtheEnglishversionofonlineeducationaltrainingforeachproductline(ProAV/ControlSystem/KVM/PDU)forinternalemployeesandexternalcustomers.Thetrainingcoursesaredesignedforsalesbusiness,dealershipandagency,FAE,andtechnicalcustomerservicepersonnel.Onabrand-newoperationinterface,visualgraphicteachingisadoptedinconjunctionwithagreatamountofinteractionsinordertosystematicallyintroduceATEN,producttechnologyandknowledgeofeachproductionline,productspecificationsandcharacteristics,aswellasmarketapplicationexamples.

In2018,theheadquartersandbranchesprovidedfourcourses (KVM/ProAV/PDU/ControlSystem),andatotalof1589peopleattendedthecourseswithanoverallcoursesatisfactionscoreof87points, includingatotalof1172peopleattendingthecoursewithanoverallcoursesatisfactionof92points. Inadditiontotheonlineproductknowledgeeducationaltraining,wealsoprovidedatotalof twosessionsofChineseandEnglishglobalbranchtechnicalsupport fullproduction linephysicalcoursetrainingandcertification, inordertocultivatetechnicalstaffwithmorecomprehensiveandprofessional technicalproblem-solving abilities.


101


ATENupholdsthecorporateprincipleof“integrity”toprovidecustomerswithhighvalue-added innovativeproductselections. Inaddition,wealsousetheprovisionof themostflexible, speedy,professional client servicesasan important indicator incontinuing toenhance theCompany’scompetitiveness.Furthermore,with regards tomaterial safety,manufacturingenvironment, and life cycleofourproducts,wemake sure to fulfillcustomers’ requirements aswell as international standardsand regulations, activelyimplementinghealthandsafetyassessmentandimprovementprograms,andestablishingself-examinationandoversightmechanismstoensureourcustomers’usesafety.

Since 2005, ATEN has established the “Hazardous Substance Restricted Use Management” projectandhascompliedwiththeglobal relevantregulatorycertificationsofErP,WEEE,REACH,RoHS2.0,etc.Inaddition,throughtheimplementationofinternationalregulationsand standards, we also synchronously comply with the regulations and standards announcedbytheEuropeanParliamentandCouncil, inordertoprovidehealthyandsafeproducts and services to customers.


102

8.5 Information Security and Guaranteeing Customers' Rights to Privacy

EU'sGDPR(GeneralDataProtectionRegulation)becameofficiallyeffectivelyonMay25,2018,anditspenaltyfineandscopeof influencearegreat. It isalsothemost importantregulationaffectingglobaldataprotectionactioninrecentyears.ATENisaglobaloperatingcompany,andproductsaresoldworldwide; therefore,wepayspecialattentionto theimplementationofGDPR.Upontheannouncementof the regulation,we immediatelyimplemented the internal promotion and educational training such that the Company is readybeforetheregulationbecomeseffective.

Forallofthechannelsofinternalsystemcontrol,informationsecuritypolicy,ATENwebsiteprivacypolicystatements,establishmentofDPO(DataProtectionOfficer)duties,[email protected] to inquireaboutpersonal informationprotectionrelatedquestions...etc.,underthejointcooperationofalldepartments,wehaveimplementedcorrespondingpreparatoryworkinordertocomplywiththeregulationsandrequirementsofGDPRonpersonal informationprotection, therebyallowingcustomers’informationsecurityandprivacytoreceivethehighestlevelofprotectioninallaspects.

Toensurethepersonal informationsecurityofcustomersandotherstakeholdersaswellastheresponsivehandlingprocedureduringtheoccurrenceof incidents,wealsoadopttheestablishmentofan“internal system”and the systemof“personal informationmanagementpromotiongroup”forthoroughimplementation.The“PersonalInformationManagementPromotionGroup” is responsible for routinepersonal informationsecuritypromotion and also convenes a group meeting semi-annually. The responsible windows of“eachdepartment”, the“WelfareCommittee”andthe“VolunteerClub”are invitedtoreviewtheexecutionstatusofthepersonal informationmanagementandtoperformdiscussionandsharingofthelatestlawsandcaseexamples.

Managing RepresentativesChairmanofthe

Board

OfficeofAuditing

General Management Unit

OfficeofGeneralManger

PlanningDivision

Xiwan Plant

Volunteer Club

ATEN

Global Human Resource Center

Global Law and Intellectual Property Center

WelfareCommittee

Global Customer Service Center

Quality Assurance Unit

ConvenerInformation

Center

Legal consultationGlobal LegalIntellectual

Property Center

Personal Information Management Promotion Team – Organization Structure

Appendix 1 Global Reporting Initiative Standards (GRI Standards) Index

103

ThefollowingindicatorsarebasedontheGRIStandardsproposedbytheGlobalReportingInitiative(GRI)correspondingtothecontentofthisReport.

GRI 102: General Disclosure 2016

Item Disclosure Item Disclosure Item Content Page Notes

Organizational Pro-file

102-1 Organization Name 4, 17

102-2 Activities, Brands, Products, and Services 19-22

102-3 Headquarters Location 4, 17

102-4 Operation Location 25-26

102-5 Ownership and Legal Form 4, 17

102-6 MarketWithServiceProvided 25-26

102-7 Organization Scale 26, 27, 42

102-8 InformationofEmployeesandOtherWorkers 42

102-9 Supply Chain 87

102-10 MajorChangeoftheOrganizationanditsSupplyChain No major changes.

102-11 PrecautionaryPrincipleorDirective 5

102-12 External Advocacy 7

102-13 MembershipofUnionsandAssociations 30

Strategy102-14 StatementFromDecisionMaker 5

102-15 KeyImpacts,Risks,andOpportunities 24

Ethics and Integrity102-16 Values,Principles,Standards,andCodeofConduct 38

102-17 RecommendationRelatedtoEthicsandMechanismforMattersofConcern 12, 38

Governance

102-18 Governance Structure 34

102-19 Authorization 8-9

102-20 SeniorManagementLevel’sResponsibilityforEconomy,Environment,andSocialTopics 8-9

102-21 ConsultationWithStakeholdersonEconomy,Environment,andSocialTopics 11

102-22 CompositionoftheHighestGoverningUnitanditsCommittees 36

102-23 ChairpersonofHighestGovernanceUnit 36

102-24 NominationandElectionofHighestGovernanceUnit 36

102-25 ConflictofInterest 36

102-26 RoleoftheHighestGovernanceUnitintheEstablishmentofPrinciples,Values,andStrategies 5, 8

102-27 GroupKnowledgeoftheHighestGovernanceUnit 36


104

Item Disclosure Item Disclosure Item Content Page Notes

Governance

102-30 EffectivenessofRiskManagementProcedure 8-9

102-31 ReviewofEconomy,Environment,andSocialTopics 8-9

102-32 RoleoftheHighestGovernanceUnitinReportingofSustainability 9

102-35 Remuneration Policy 37

102-36 RemunerationDeterminationProcess 37

Stakeholder Engage-ment

102-40 StakeholderGroup 10

102-41 Group Agreement No Trade Union

102-42 StakeholderIdentificationandSelection 10

102-43 StakeholderCommunicationDirective 10-12

102-44 ProposalonKeyTopicsandMattersofConcern 13-14

Ethics and Integrity

102-45 Entities Included in the Consolidated Financial Statements 4

102-46 DefineReportContentandTopicBoundaries 4, 13-14

102-47 Major Topic List 14

102-48 InformationRestatements Noinformationrestatements.

102-49 Report Change No major report change.

102-50 Reporting Period 4

102-51 DateofLastReport 4

102-52 Reporting Cycle 4

102-53 ContactPersonforRespondingtoQuestionsRelatedtotheReport 4

102-54 DeclarationAccordingtoGRIStandardsReport 4

102-55 GRI Content IndexAppendix 1 Global Reporting Initiative Standards (GRI Standards) Index

102-56 ExternalGuarantee/Assurance 4

GRI 103: Manage-ment Directive 2016

103-1 ExplanationofMajorTopicsandBoundariesThereof 14

103-2 ManagementDirectiveandElementsThereofPleaserefertocorrespondingcontentofp.14Major Topic Form.

103-3 ManagementDirectiveAssessmentPleaserefertocorrespondingcontentofp.14Major Topic Form.


105

GRI Specific Topic Standard DisclosureItem GRI

Specific Topic Disclosure Item Content Page Notes

Economic Performance ☆

201-1 Directeconomicvaluegeneratedanddistributed 27, 38

201-3 DefineWelfarePlanandObligationasWellasOtherRetirementPlan 42

201-4 Finance Assistance Received From the Government

On February 9, 2018, the Company was approved by thereviewoftheIndustrialDevelopmentBureau,suchthat the Company was able to acquire the research investmenttaxdeductionamountofNT$6.15million.

Indirect Economic Impacts

203-1 Developmentandimpactofinfrastructureinvestmentsandservicessupported 50

203-2 SignificantIndirectEconomicImpacts 50

Energy

302-1 Energy consumption within the organization 75

302-3 Energy intensity 75

302-5 Reductionsinenergyrequirementsofproductsandservices 78

Emissions

305-1 Direct(Scope1)GreenhouseGasEmissions 81-82

305-2 Energy Indirect (Scope 2) Greenhouse Gas Emissions 81-82

305-4 Greenhouse Gas Emission Intensity 83

305-6 EmissionsofOzone-depletingSubstances(ODS) Production and products do not use any ozone-depletingsubstances(ODS)materials.

305-7 NOx,SOx,andOtherSignificantMaterialGasEmissions Nosignificantemissionofairpollutants.

Waste Sewage and Waste

306-1 WaterDischargeAccordingtoWaterQualityandDischargeDestination

ATENhasdifferenttypesofeffluentandwastewaterdischargefacility,whichproperlytreatwastewaterfromeachofourplantsbeforedischargingitintogovernment-owned sanitation sewers.

306-2 WasteClassifiedbyTypeandTreatmentMethod 79

306-5 WaterBodyAffectedbyEffluentandOther(Surface)DrainageExceptforrainwater,alldrainageistreatedbeforedrainingintothesewagesysteminthePark;therefore,there is no direct impact.

Compliance With Environmental

Protection Related Laws ☆

307-1 ViolationofEnvironmentalProtectionLaws No punishment related to noncompliance with environmental laws and regulations received in 2018.

Supplier Environmental Assessment

308-1 AdoptEnvironmentalStandardsforScreeningNewSuppliers 86-87

308-2 NegativeImpactofSupplyChainontheEnvironmentandActionsAdopted 88-89

Labor-Management Relationship ☆

401-1 New Employees and Resigned Employees 42

401-2 WelfareProvidedtoAllEmployees 42

401-3 Parental Leave 42

Labor/Management Relations 402-1 Minimum Notice Periods Regarding Operational Changes Handled according to Labor Standards Act related

regulations.

☆ Major Topics


106

ItemGRI

Specific topic

Disclosure Item Content Page Notes

Occupational Safety and Health

403-1 WorkerrepresentativesintheSafetyandHealthCommitteeformedjointlybythelabor-management. 45

403-2 Typeofinjury,injury,occupationaldisease,numberofworkingdayslost,absenceratio,etc.,andnumberofdeathsinthecourseofjobduties. 45

403-3 Workerswithahighincidenceorhighriskofincidentsthatarerelatedtotheiroccupation.

WiththeuseofVolatileOrganicSolventswith n-hexane which can cause numerous neurological diseases, employees in contact with suchsubstancefrequencyaretrackedperiodicallyforthehealthcondition,andcurrently,thereareno relevant occupational diseases.

403-4 HealthandSafetyTopicsCoveredinFormalAgreementsWithTradeUnions No trade union

Training and Education ☆

404-1 AverageHoursofTrainingperYearperEmployeeByGender,andByEmployeeCategory 43

404-2 Improveemployeeoccupationalskillsandtransitionassistanceprograms. 44

404-3 PercentageofEmployeesReceivingPeriodicPerformanceandOccupationalDevelopmentReviews, By Gender and By Employee Category 43

Diversity and Equal Opportunity 405-1 DiversityofGovernanceUnitandEmployees 36

Local Communities ☆

413-1 CommunicateWithLocalCommunities,ImpactAssessment,andDevelopmentPlanOperationActivities

Communicatefrequentlywithlocalgovernmentagencies, nursing homes, charity organizations, social service centers, in order to assess the community needs, and provide timely assistance.

Supplier’s Social Assessment 414-1 New Suppliers That Were Screened Using Social Criteria 86

Public policy 415-1 PoliticalDonations No political donations in 2018.

Customer Health and Safety ☆

416-1 Assesstheimpactofproductsandservicesonhealthandsafety. 73, 101

Marketing and Labeling ☆

417-1 Productandserviceinformationaswellaslabelingrequirements. 73, 101 AllproductsofATENcomplywithrelevantinformationandlabelingrequirements.

Social and Economic Regulatory

Compliance ☆419-1 Non-compliance with laws and regulations in the social and economic area. Noviolationofrelevantlawsandregulationsin

2018.

☆ Major Topics

Appendix 2 Independent Assurance Opinion Statement

107

ATEN International Co., Ltd.Address: 3F., No. 125, Sec. 2, Datong Rd., Xizhi Dist., New Taipei City 221TEL: 02-8692-6789 FAX: 02-8692-6577http://www.aten.com

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