Local Procurement

Radiant Opto-Electronics regards suppliers as key partners essential for sustainable operations. To accelerate the creation of a green, low-carbon supply chain, improve production efficiency, and reduce Scope 3 greenhouse gas emissions, Radiant Opto-Electronics considers cost, supply quality, delivery timelines, and risk factors, prioritizing “local sourcing” as a key factor in supplier selection. The Company systematically plans to increase the annual target ratio of local sourcing. In recent years, Radiant Opto-Electronics has actively implemented localized sourcing strategies, encouraging suppliers to establish local manufacturing facilities to reduce the energy consumption associated with air and sea transport and to shorten delivery times. During procurement transactions, Radiant Opto-Electronics adheres to principles of fairness in selecting suppliers, evaluating them based on the quality and price of raw materials, delivery times, supplier stability, production and supply capabilities, and compliance with environmental and safety standards. Analyzing the supplier transaction volumes for 2023, the Kaohsiung plant accounted for the highest percentage at 56.05%, while the Guangzhou factory was relatively lower at 6.29%. Overall transactions were predominantly in raw material purchases, accounting for 96.27%. In 2023, the overall local sourcing ratio for the entire group reached 49.48%, with the mainland China factories achieving a local sourcing ratio of 59.22%. The discrepancy in these figures is attributed to adjustments in trading models and price fluctuations.