Investment

Sustainable Development

Stakeholder Engagement

AGV refers to the recommendations of the GRI Standards and identifies stakeholders that may be affected by positive and negative economic, environmental, and social impacts. Based on the experience of communicating with stakeholders, there is no significant difference from last year. Our continued communications with the eight categories of groups are used as the reference for the information disclosed in this report.

Following discussions at internal meetings, AGV has identified eight categories of stakeholders: business partners (in the food industry), customers and distributors, consumers, shareholders and other investors, suppliers, employees and other workers, government agencies, and financial institutions.

Channels for Stakeholder Communication

Stakeholder	Significance of the stakeholder to AGV	Communication channels	Frequency	Communication performance
Business partners (in the food industry)	Peers in the food industry are significant to AGV in terms of competition, cooperation, industrial development and compliance standards. AGV should remain vigilant in its competition with its peers, while also seeking cooperation and partnership to promote the development and mutual prosperity of the whole industry.	•Trade associations •Non-public contact •Participation in food industry meetings •Website information	•Regular participation •Irregular •Irregular •Irregular	1.We learn lessons and interact with peers during our participation in meetings to achieve a sustainable environment and economic development for the food industry. 2.We inspire ideas for new products and use our strengths to make up for our shortcomings.
Customers and distributors	The significance of customers and distributors to AGV lies in providing revenue, promoting growth, giving valuable feedback, building good reputation and brand image, and enjoying AGV’s products and services. They are also the key to business development.	•Regular meetings between both sides •Communication through product events •Personal visits/Telephone/Fax/Email •Customer service hotline •Customer satisfaction survey •Gifts for traditional holidays/Having meals together	•Regular quarterly or annual meetings •Irregular •Irregular •Instant •Annual •Regular	1.We are able to demonstrate our marketing performance on a regular basis and exchange ideas for a close partnership. 2.We are able to exchange ideas and solve problems instantly. 3.We ensure that consumers are safe and assured in consuming AGV’s products. 4.We understand customers’ consumption habits through different channels and adjust the direction of products in line with the consumption trends of the general public.
Consumers	Consumers are the key force driving AGV’s development, and their needs have a significant impact on AGV’s technological R&D, quality management and marketing decisions.	•Business visits/Telephone/Fax/Email •Customer service hotline •Customer satisfaction survey	•Irregular •Instant •Annual	1.We ensure that consumers are safe and assured in consuming AGV’s products. 2.We understand customers’ consumption habits through different channels and adjust the direction of products in line with the consumption trends of the general public.
Shareholders and other investors	Maintaining good relationships with shareholders and investors, valuing their opinions, and sharing profits and risks with AGV through effective communication play an important role in corporate governance. Therefore, shareholders and investors are highly important to AGV’s development and operations.	•Convening shareholders’ meetings •Investor conferences •Publication of material information as required by the competent authorities •Regular publication of financial statements/annual reports •Contact email for shareholder services •Disclosure of information on the website •Appointment of a spokesperson	•Annual •Annual •Instant •Regular •Instant •Irregular •Irregular	1.We publish Chinese and English versions of the handbooks, annual reports and minutes of shareholders’ meetings for investors as reference. 2.We organize an investor conference each year for investors to understand the revenues from our products and the status of our operations. 3.When an event with a material impact on shareholder equity or securities prices occurs, it is announced on the Market Observation Post System (MOPS). 4.We publish our financial reports on the MOPS on a quarterly basis. 5.A section for investors has been created on our website to provide a contact channel for sharing the latest news and development of AGV and answering shareholder questions.
Suppliers	Suppliers are the key source of our food safety control, and we have established a good partnership with our suppliers to work together for food safety control.	•Personal visits/Telephone/Fax/Email •Discussion of problems •Development of new products •Questionnaire responses •Supplier audits and interviews •Annual contracting and contractor survey •Gifts for traditional holidays/Having meals together	•Irregular •Irregular •Irregular •Irregular •Irregular •Annual •Irregular	1.We and our suppliers jointly comply with the requirements of food safety management and environmental safety systems and receive certification as Authorized Economic Operators to enhance food safety awareness in the food industry. 2.We assist suppliers in their commitment to comply with relevant governmental laws and regulations as well as the latest social responsibility requirements, including: labor and human rights, health and safety, environment, and ethics. 3.We provide raw materials that meet the requirements of the relevant food safety management system and establish good supply channels to ensure a stable supply of raw materials.
Employees and other workers	Employees form the backbone of AGV’s sustainable management and are the driving force behind its continued growth. In order to ensure effective use of human resources to achieve our goals, missions and vision, we make it possible for employees to work comfortably and bring out their potential, benefiting both AGV and its employees.	•Employee message board •Internal online bulletin board •Two-way communication with the management •Complaint hotline •Employee Welfare Committee meetings •Improvement proposal system •Recommendation of outstanding employees •Labor Pension Fund Supervisory Committee meetings •Labor-management committee meetings •Personnel Review Committee meetings	•Instant •Instant •Instant •Instant •Quarterly •Irregular •Irregular •Annual •Quarterly •Irregular	1.Through different communication channels established by AGV, employees are able to express their problems and needs effectively, and to solve them. 2.We establish good communication channels to minimize the chance of confrontation between employees and AGV.
Government agencies	Government agencies play an important role in building infrastructure, providing public services and improving the business environment for companies. All of our factories are subject to supervision and auditing by the competent authorities, such as the Securities and Futures Bureau, the Taiwan Stock Exchange, the National Taxation Bureau, the Fire Bureau, the Occupational Safety and Health Administration, Ministry of Labor, and the Environmental Protection Bureau, and we strictly comply with their requirements.	•We maintain good interactions with the competent authorities, such as paying personal visits to them. •Identification of the laws and regulations governing management systems •Official correspondence and information disclosure •Consultation and clarification on financial and tax issues •Factory inspection •Telephone •Email	•Irregular •Instant •Irregular •Irregular •Irregular •Instant •Instant	1.We maintain good interactions with the competent authorities, and we cooperate with them in adopting relevant regulations, codes and procedures. 2.We cooperate with the competent authorities in audits and respond promptly and effectively to their questions. 3.We publish material information and report information in accordance with relevant regulations. 4.Ensuring proper functioning of fire safety equipment. 5.Protecting the safety of workers. 6.We establish a comprehensive identification and registration mechanism and evaluation of environmental laws and regulations. In case of any non-compliance, improvement and preventive measures will be taken immediately.
Financial institutions	The financial institutions dealing with AGV provide a stable source of funding.	•e-mail •Financial institutions dealing with AGV	•Instant •Irregular	The financial institutions dealing with AGV continue to provide a stable source of funding and financial planning services.

Identification and Analysis of Material Topics

In our sustainability report, stakeholders and material topics have been identified based on our experience in communication with stakeholders. The material topics stakeholders are concerned with have been identified through the following four steps:

1. Understanding the organizational context

We listed 19 sustainability issues based on the GRI standards, the standards of the Sustainability Accounting Standards Board (SASB) and those of the food industry.

2. Identifying actual and potential impacts

The Sustainable Development Task Force, analyzing the actual or potential negative and positive impacts to AGV of each sustainability issue in the aspects of the economy, the environment and society (people and human rights), ranked the materiality of the issues by totaling the scores for actual negative impact, potential negative impact, actual positive impact and potential positive impacts of each issue in the aspects of the economy, the environment and society (people and human rights), thus completing the identification and confirmation of AGV’s material topics.

3. Assessing materiality and the significance of impact

The Company collected opinions from various parties through a “Stakeholder Area Questionnaire” and received a total of 166 responses. The Sustainable Development Team held a meeting to discuss the results of the questionnaire analysis, and based on past operational experience, conducted a comprehensive assessment of the significance and likelihood of each issue. After discussion and analysis, the five issues were finally confirmed as the Company’s material topics for this sustainability report, serving as the key focus areas for subsequent sustainability management and communication.

4. Prioritizing topics with the most significant impact for reporting

Each material issue is assessed comprehensively based on its subject matter. Finally, corresponding management content is established for each of the five major sustainability issues confirmed, covering goals, strategies, specific actions, and performance indicators. Each material topic is distributed to the relevant chapters of the sustainability report for disclosure, based on its characteristics and relevance, to respond to stakeholders’ concerns about the Company’s sustainability performance.

Firmly understanding the importance of environmental protection and sustainable development, AGV has identified five material topics through identification procedures: “Economic performance”, “Water resource management”, “Supplier management (Procurement practices)”, “Occupational safety and health”, and “Food safety”.

The above topics will serve as the core chapters of this report, strengthening communication and interaction with stakeholders and fully demonstrating the Company’s performance and commitments in the economic, environmental, and social (including human rights) areas.

List of material topics

List of material topics	Description of the organization’s policies or commitments related to the material topic (Description of their significance)	Description of impacts (Economy, environment and people (including human rights))	Actual/Potential Positive/Negative (The above scenarios may exist simultaneously)	Preventive or remedial measures for negative impacts	Goals and targets (Setting and evaluation of short-, medium- and long-term goals)
Economic performance	We are committed to revenue growth, profit improvement, and economic value creation, and to stabilizing business operations through performance management, innovation, cross-disciplinary expansion, and a commitment to sustainability. In order to achieve stable and continuous economic performance, the Company adopts the following basic policies and execution strategies: Basic policy: 1.Stable operating revenue growth. 2.Continue to improve profitability. 3.Value-added economic value. Executive strategy: 1.Strengthening performance management to improve business efficiency. 2.Promote product and technology innovation to enhance market competitiveness. 3.We will expand domestic and overseas markets, strengthen supply chain integration and risk management, implement corporate social responsibility, and balance economic benefits with social and environmental impacts.	Economic: The economic performance of the enterprise directly impacts stakeholders (investors, employees, consumers, government, suppliers, etc.) and the development of the industrial chain, and critically affects market stability and industry competitiveness. Economic performance affects the internal and external environment of the Company, and further impacts its sustainable development strategy through expansion via the supply chain and industrial chain into global markets. People: All stakeholders may be affected, including investors, the government, employees, consumers, third-party manufacturers, third-party verification units, academic institutions, and non-profit organizations.	Positive: Stable operating revenue and profit contribute to industry development, increased employment opportunities, and national economic growth. Good governance and medium- and long-term economic strategies can strengthen corporate competitiveness and enhance market trust. A robust business model ensures ethical management, strengthens corporate reputation, and enhances investor confidence. Negative: Failure to meet market expectations or a fair distribution of earnings may affect investor rights and interests and give rise to legal risks. The lack of sound governance mechanisms will increase operational risks and affect the Company’s stable development. Poor management or food safety incidents may result in damage to the company’s reputation, investor withdrawal, and a decline in consumer confidence, leading to impacts on revenue and capital operations.	Cross-departmental functional team. The “R&D and Production Strategy Team” and the “Sustainable Development Team” supervise and adjust the operating strategy to ensure financial stability, meet stakeholder needs, and implement ESG principles (Environment, Social, and Governance). Comprehensive operational meetings: Biweekly reports, monthly meetings, quarterly reviews, semi-annual reviews, annual business review meetings, Board of Directors meetings, shareholders’ meetings, and investor conferences—all used to review financial and business performance immediately and develop improvement measures.	Goals and targets: •Short-term: Maintain steady growth and ensure financial targets are met. •Mid- and long-term: Pursue continuous growth and operational resilience for corporate sustainable development. Key indicators: 1.Revenue growth rate, gross margin, operating margin, net margin and other financial performance. 2.Return on assets (ROA), return on equity (ROE), earnings per share (EPS). 3.Overall enhancement of corporate values: Direct economic values, distributed economic values, retained economic values. Advantage indicators: Market share, product penetration, consumer loyalty, brand reputation value.
Water resource management	Faced with different water resource risks, AGV has started to take action in the three aspects of developing more sources of income, reducing expenses and emergency responses. AGV has held regular meetings to discuss issues concerning water resources, formulate policies and review the performance in water conservation, and has been promoting the idea of water conservation in various ways such as posters, slogans and educational sessions in order to integrate such ideas with every aspect of planning, design, production and office life.	Economy: 1.Water Pollution Control Act 2.Regulations on Charge of Water Consumption Fee 3.Shortage of water resources 4.Higher probability of floods caused by rainstorms Environment: Wastewater discharged indiscriminately pollutes the surrounding environment of the plant. People: People’s livelihoods are affected by water shortages.	Positive: Due to the shortage of water resources, we have adopted various methods to save water and reuse water resources to reduce the use of tap water. Negative: Shortage of water resources may affect production and operations, and the Water Pollution Control Act and water consumption fees may result in increased operating costs.	1.Establishing a water response task force to monitor the amount of water consumed by each factory and information about local water situations. 2.Investing in and improving environmental protection equipment, and setting and monitoring targets for the quality of water discharged. 3.Establishing operating procedures for emergency responses to disasters, implementing a water conservation plan, increasing the efficiency of water consumption, and adopting a water rationing response plan.	With 2023 as the base period, our expected target is to reduce water consumption by 3% by 2025.
Supply management (procurement practices)	Committed to source management in the procurement of raw materials, we require our suppliers to achieve waste reduction and prevention in manufacturing processes and emphasize social responsibilities and human rights protection.	Economy: Stable and instant supply of raw materials to ensure the operation of manufacturing processes. Environment: Achieving carbon reduction, energy consumption and regeneration of water resources. Human rights: Emphasizing corporate social responsibility, improving human rights protection and reducing inequality/discrimination.	Positive: Requiring suppliers to implement environmental, social responsibility and human rights measures helps ensure the sustainability of raw material sources and increase the social and environmental benefits of our supply chains, thus enhancing our reputation. Negative: 1.Failure of any supplier to comply with environmental, social and human rights measures may exacerbate environmental risks and social impacts, causing damage to our image and operations, and even leading to legal and business interruption risks. 2.If a supplier is found to be in violation of the requirements during an audit, we will require immediate improvement and suspension of supply.	There may be a situation where no suppliers are qualified, so there must be no fewer than two suppliers to supply us.	Short-term: Our suppliers are able to achieve waste reduction and prevention in manufacturing processes and emphasize social responsibilities and human rights protection. Medium- and long-term: Our suppliers are able to acquire certifications for environmental management standards (ISO 14001), greenhouse gas (GHG) inventory (ISO 14064) and water footprint (WFN).
Occupational safety and health	1.Respect for life and concern for safety 2.Conserving resources and ensuring their management 3.Continuous improvement and sustainable development 4.EHS is everybody’s responsibility	Economy: The Company bears medical expenses, responsibility for compensation, and the cost of money and time for the accident. Environment: Creating a safe, healthy and comfortable work environment and reducing the occurrence of occupational accidents to meet the requirements of the law. People: Employees are unable to work and lose a source of income.	Positive: 1.Establishing a culture of safety and health and providing employees with a safe working environment to reduce the occurrence of occupational accidents and protect the health and safety of employees. 2.Compliance with applicable laws and regulations reduces legal risks, protects our reputation, and attracts the trust of investors and consumers. 3.Establishing a good image of occupational safety and health to attract outstanding talent and enhance our competitiveness. Negative: 1.Personnel experience disabling injuries due to failure to implement operational safety regulations. 2.According to the relevant internal indicators, if the target is not met, analyze the cause and propose improvement measures.	Reviewing FR and SR annually and organizing training to ensure the most solid protection of our employees.	In accordance with EHS policies and strategies, we will develop management indicators and set target values to reduce personal health and safety accidents. In addition, we will improve the protection of process safety to continuously enhance our performance in occupational safety and health.
Food safety	To maintain good product quality, it is necessary to establish and implement a QA system covering our overall quality operations. As the current mainstream food safety system applied in the food industry, ISO 22000 is able to ensure the quality of our products through certification and implementation of the system, and therefore can definitely prevent the impact of any material food safety incident from affecting our brand image and overall operations.	Economy: In recent years, the food industry has been susceptible to the impact of economic cycles. Raw materials, materials, and wages have risen. The costs of the food industry have been impacted. Therefore, it is necessary to focus on and continue to maintain food safety, establish a good brand value and company image, and promote business performance. Make products more economical. Environment: Public confidence in the food safety of the food industry has been impacted due to drastic changes in the industry and the occurrence of major food safety incidents (Sudan Red, Ethane Oxide) in the country. People: Increasing health awareness on the part of consumers and stricter popular requirements for the food chain, including the sources of food materials and the processes of food manufacturing or transportation, are factors likely to have an impact on our operations. In the face of such impact to the industrial environment, our future development focus will be based on our brand reputation and size of operations to create high-quality, easily transportable and affordable products.	Positive: Through the establishment and implementation of an ISO 22000 food safety system, we are able to maintain product quality, protect customer health and safety, enhance our brand image and trust, increase customer loyalty, and promote continuous business growth. Negative: When food safety concerns arise, if measures are not taken in time, it will not only cause panic among consumers, but also lead to more negative news.	In case of food safety concerns, our customer service representatives will first check customers’ situations and initiate a product investigation at the same time. If the food safety concern comes from the raw materials provided by the supplier, we will audit or return the raw materials of the upstream suppliers. In addition, we have established a system for recall and destruction of finished products, and the recall mechanism will be activated if it is confirmed that there are food safety concerns for the products.	1. The food safety management system must be implemented with the relevant information updated throughout the company. The level of food safety must meet the requirements specified in the “System Requirements for Hazard Analysis and Critical Control Points” of the ISO 22000:2018 food safety management system. 2. The food safety management system must be regularly assessed and, if required, updated, to ensure that the system is able to reflect our activities. The system must also include the latest information about controlled food safety hazards. 3. A “procedure governing identification of laws and regulations” must be established to ensure continued compliance with the latest laws, regulations and customer requirements concerning food safety. For implementation, operation or evaluation of the food safety management system, the personnel responsible for implementing the system must possess competency, and must have undergone appropriate internal or external training and received the relevant certificates.