Gudeng Precision Industrial Co., LTD

Gudeng Precision Industrial Co., LTD

Business Continuity Plan

CEO

Bill Chiu

Partner with HEART,. Grow with PASSION.

Why we are named "Jia-Deng“

► The Chinese pronunciation for Gudeng is, "Jia-Deng", the first character, "Jia", means there’s a pig under the roof. We are committed to our employees, so they can become wealthy, as long as they work hard.

► The second character, "Deng", which means to climb to the highest level with courage, just like in the story “Jack and the Beanstalk”.

► The existence value of Gudeng is so that my employees can attain their wealth and make their dreams come true. We hope Gudeng will be a sustainable enterprise, furthermore, bringing more happiness to all stockholders. This is why I chose

Gudeng as our company name. “Gudeng = 久久長長 (Local Language of Chinese Taipei)”

2

We increased 125 times in 15 years.

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

100

200

300

400

500

600

700

5

280

415

543

624

單位：百萬元

現金增資 C

apital In

creased

可轉換公司債 C

on

vertible B

on

ds

上櫃 L

isted興櫃 E

merg

ing

Now, we have to consider How to be a Sustainable Enterprise?

BCP helps us to continue operating

Drawing up a BCP helps us to continue operating during a disaster or shorten recovery time following a disaster.

Our BCP Process Flow

1. Identify

2. Analysis

3. Create

4. Measure 風險辨識

Risk Assessment

風險評估Business Impact Analysis

計畫擬定Strategy & Plan

Development

演練與訓練Test, Train &

Maintain

BCP helps us to ensure that business processes can continue during a time of emergency or disaster through identifying the potential impacts systematically.

Step 1. 風險辨識 Risk Assessment

企業風險分類Risk Category

對家登而言的潛在風險Potential Impacts

策略風險 Strategic Risk

研發技術落後 Technological Backwardness 、 侵權 Infringement 競爭者惡意攻擊 Malicious Attacks From Competitors 併購 / 投資失敗 Acquisitions / Investments Failures

財務風險 Financial Risk

客戶倒帳 Bad Debts 資金周轉不靈 Cash Flow Problems

經營風險 Operational Risk

生產設備運轉 / 電力 / IT 系統 / 原物料中斷 loss of Equipment / Power / IT System / Raw Material

勞資衝突 Labor Conflicts 品質缺失 Quality Problems 機密外洩 / 資訊安全 Information Security 客戶抽單 Emergency Order Withdrawal

危害風險 ; Hazardous Risk

工廠意外 / 工安事故 Accidents 天災 / 火災 Natural Disasters / Fires 傳染病 Infectious Diseases

First, identify the various threats to business continuity. There are four types of risk assessments. The following are our assessment results:

Step 2. 風險評估 Business Impact AnalysisA. We define the probability and impact scope to

calculate the degree of risk. The following is our definition of every level of probability and scope:

等級

發生可能性 Probability 影響範圍 Impact Scope

定義 Definition 可能性 Probability

定義 Definition

金額Amount

廠區Area

傷亡人數Casualty

1 風險幾乎不存在Very Low

10 年 1 次1 time / 10 y

幾乎不影響Very Low

1 千萬以下↓ 10M

無明顯影響Not significant

0

2 風險少部分存在Low

5 年 1 次 ~10 年 1

次1 time / 5~10 y

少部分影響Low

1~5 千萬10~50M

1 區間1 block

1 人以下

3 風險部分存在Medium

3 年 1 次 ~5 年 1

次1 time / 3~5 y

部分影響Medium

5 千萬 ~1

億50~100M

1 區間 ~1 廠區

1 block~ 1 plant

1~3 人

4 風險大部分存在High

1 年 1 次 ~3 年 1

次1 time / 1~3 y

大部分影響High

1~5 億100~500M

1~2 廠區1~2 plant

3~10 人

5 風險完全存在Very High

1 年 2 次以上Twice / 1 y

完全影響Very High

5 億以上↑↑ 500M

全廠區All plant

10 人以上

Rating ACTION

1~5不採取動作Very Low

Risk

6~11 可接受Low Risk

12~19 視狀況改善Medium Risk

20~24 應改善High Risk

25立即改善

Very High Risk 發生可能性 Probability

影響範圍 S

cope

B. Develop the risk matrix to figure out what kinds of actions we should take:

1 2 3 4

5

1

2

3

4

5

Step 2. 風險評估 Business Impact Analysis (continued)

C. The following are our BIA Results in 2014:Risk Category Potential Impacts Probability Scope Rating % Priority

策略風險 Strategic Risk

研發技術落後 2 4 8 6.1% 6

侵權 4 2 8 6.1% 6

競爭者惡意攻擊 5 2 10 7.6% 4

併購 / 投資失敗 2 4 8 6.1% 7

財務風險 Financial Risk

客戶倒帳 4 1 4 3.1% 14

資金周轉不靈 1 4 4 3.1% 14

經營風險 Operational Risk

生產設備運轉中斷Loss of equipment

4 3 12 9.2% 2

電力中斷 5 1 5 3.8% 11

IT 系統異常 5 1 5 3.8% 11

勞資衝突 2 1 2 1.5% 18

品質缺失 5 2 10 7.6% 4

機密外洩 / 資訊安全 4 2 8 6.1% 6

原物料中斷Loss of Raw material

4 3 12 9.2% 2

客戶抽單 4 2 8 6.1% 6

危害風險Hazardous Risk

工廠意外 1 3 3 2.3% 16

工安事故 5 1 5 3.8% 11

天災 natural disaster 5 3 15 11.5% 1

火災 1 3 3 2.3% 16

傳染病 1 1 1 0.8% 19

Step 2. 風險評估 Business Impact Analysis (continued)

Manufacturing Dept.

Factory Affairs

Procurement Dept.

Supply Chain

Management Dept.

Sales Dept.

Prevention

Emergency

Response

Recovery

Maintenance Plan

Execute Plan

Evacuate Cleanroom

Check and Accept

Turn Off Transformer

Confirm Damage

Delivery affected or not

Inform CustomerDelivery

YES

Turn On Transformer

Reschedule

Machine Regulate

First Pieces Measurement

Outsourcing or not

Adjust Schedule

YES

NO

NO

ConfirmDelivery

Step 3. 計畫擬定 Plan Development Ex . 生產設備中斷 Loss of Production Equipment

Thank You