Supplier Management Policies

Radiant Opto-Electronics has established the "ROE Supplier Code of Conduct" and the "Environmental & Substances Management Standards" to ensure that its supply chain complies with standards related to labor, health and safety, environmental protection, business ethics, and management systems. The goal is to create a supply chain in which all workers enjoy fair and free employment opportunities and a safe working environment.

Radiant Opto-Electronics strengthens the overall sustainability of its supply chain through four key strategies: "Supplier Policy," "Supplier Sustainability Risk Identification," "Supplier Sustainability Risk Audit," and "Supplier Guidance." The company incorporates environmental, social, and governance (ESG) sustainability aspects into the procurement operations evaluation (Quarterly Business Review, QBR) metrics. Additionally, through regular supplier education and training, Radiant collaborates with supply chain partners to achieve sustainable prosperity. 

Radiant Opto-Electronics reviews its purchasing practices toward suppliers to ensure alignment with its Supplier Code of Conduct and to avoid any potential conflicts with ESG requirements. In supplier selection and contract awarding, the Company gives preference to suppliers with stronger ESG performance, as well as those that meet the Company’s minimum quality standards. If suppliers are unable to achieve the minimum quality standards and ESG requirements within the specified timeframe, they will be excluded from contracting. This approach helps ensure that all suppliers meet the Company’s expectations for quality, responsible business conduct, and sustainability performance. In addition, the Company provides training to buyers and relevant internal stakeholders on their roles and responsibilities in supplier ESG programs, in order to strengthen implementation and promote responsible procurement practices throughout the organization.

Radiant Opto-Electronics Suppliers Supply Chain

Radiant Opto-Electronics is an upstream manufacturer in the panel industry, mainly producing backlight modules that provide uniform and sufficient brightness for various information, communication, and consumer products, making them a crucial component of TFT-LCDs. The industry structure can be broken down to material, panel, module and upstream materials for LCDs. Besides the backlight module, the upstream materials include glass substrate, color filter, polarizer and driver IC. The upstream raw material industries include LGP, light source, optic films and plastic frame, while the downstream includes the manufacture and assembly of LCD panel and a range of applications for all kinds of electronics.

Supplier Standards Compliance

Radiant Opto-Electronics Corporation has developed a "ROE Supplier Code of Conduct" that draws upon the RBA, the UN Guiding Principles on Business and Human Rights, the ILO's Declaration on Fundamental Principles and Rights at Work, and the UN Universal Declaration of Human Rights. The Supplier Code of Conduct covers five key areas: labor, health and safety, environment, business ethics, and management systems. To ensure suppliers understand the relevant content, Radiant Opto-Electronics has published the "Supplier Code of Conduct Commitment" on its internal system and official website for supplier partners. This aims to create a sound and healthy supply chain ecosystem, including respect for employees, environmental safety, workplace conditions, and adherence to business ethics.

Supplier Risk Assessment and Improvement

Radiant Opto-Electronics regards its suppliers as one of its most important business partners and is committed to building a win-win collaborative relationship. To ensure a stable supply of raw materials, Radiant Opto-Electronics conducts regular annual audits of its suppliers to verify alignment in quality standards, management capabilities, sustainability performance, and strategic direction.

Supplier Review and Selection

Radiant Opto-Electronics conducts an annual ESG sustainability self-assessment survey for its suppliers to monitor their progress in implementing sustainability practices. When selecting key suppliers, the company places heightened emphasis on risks associated with specific countries, sectors, and commodity, thereby striving to maintain the stability of its operations and value chain. The questionnaire consists of five key dimensions and 55 questions, providing an in-depth review of suppliers’ sustainability management practices. In implementing sustainable supply chain management, ESG scores are incorporated into the Group's Quarterly Business Review (QBR) assessments, amplifying the impact and value of sustainability.

In A-D tiered management, Radiant Opto-Electronics conducts sustainable risk assessments for suppliers based on criteria such as raw materials, transaction volumes, critical components, and exclusivity of supply. The Company identifies "First-tier Critical Suppliers" and distributes self-assessment questionnaires to these critical suppliers to investigate potential environmental and social risks.

Audit and Tracking

Based on the results of the self-assessment survey scores, Radiant Opto-Electronics further categorizes suppliers by "risk level." For those assessed as "high risk," on-site audits are conducted by the Environmental Health and Safety (EHS) and Human Resources (HR) departments. The audit criteria were based on the RBA foundation, encompassing five main aspects: labor, health and safety, environment, business ethics, and management systems. Deficiencies were classified into four levels: priority, major, minor, and observation. Suppliers were required to submit improvement plans to ensure risks were effectively managed and reduced. In 2025, a total of 34 suppliers from Taiwan and Mainland China were selected based on the definition of "First-tier Critical Suppliers." These suppliers accounted for 85.98% of the total procurement amount and were tasked with conducting a self-assessment audit of sustainability risks. The audit coverage rate is 100%.

After document review, on-site audits were conducted for 8 suppliers (1 high-risk and 7 non-high risk) identified as potentially high-risk. The 2025 supplier risk audit results showed no immediate or significant risks, with no instances of child labor or forced labor. All suppliers had no critical or major nonconformities, received audit ratings of B or above, and no environmental negative impacts were observed. Additionally, no violations of labor rights, occupational safety, or forced labor standards were detected.

Risk Management Policies for Key Materials

Radiant Opto-Electronics conducts risk identification for critical materials, which include PMMA plastic pellets, prismatic lenses, LEDs, LED modules, LED light panels, metal parts, plastic parts, and others. To strengthen supply chain resilience, Radiant Opto-Electronics proactively plans contingency measures to address potential disruptions in the supply of critical materials.