Corporate Governance
The company places great importance on promoting board diversity and has set specific phased goals for achieving a diverse board composition. During the director selection process, the Nomination Committee considers candidates from different age groups and encourages a gradual generational transition to ensure a diverse and inclusive representation on the board. In respect of professional background, all directors have experience in management and from industries, including R&D, marketing, and finance. In terms of directors’ professional knowledge and skills, all eight directors possess knowledge and skills in leadership and decision-making and business management, with expertise in risk management, information technology, financial accounting, and law.
To achieve the goal of corporate sustainable development and be aligned with the important aspects that clients are concerned about and international trends, Primax has established a risk management system to regulate the management mechanism of risk management in accordance with the requirements of corporate risk management, thereby improving the operational efficiency of risk management. The risk assessment team evaluates the sources, items, and indices of risks, identifies significant risks and opportunities that may impact operations, and proposes relevant response strategies. The team provides an enterprise risk management report to the Risk Management Committee and reports to the Board of Directors at least once a year, as convened by the Chair of the Risk Management Committee.
The major enterprise risks identified for Primax include: (1)Challenges in the Chinese industrial upgrading, (2)Inflation, (3)Global expansion, (4)Financial management, (5)Increasing demand for green products, (6)Adoption of low-carbon production technologies, (7)Mandatory climate information disclosure and reporting, (8)Non compliance with customer ESG requirements, and (9)Widespread adoption of sustainability assessments.
Primax Electronics's continuous profitability and growth are primarily attributed to its embrace of innovation. The company's focus on technology development lies in the integration of acoustics, visuals, and human-machine interfaces, known as "three-sensesin-one" product applications. In an era of constant technological advancements, Primax Electronics strives to develop key new technologies and products that sustain profitability and extend its business into every individual's living environment.
- Patent Management
- Internally, Primax Electronics incentivizes innovation through a reward system and evaluation process, encouraging employees to submit invention applications. The company establishes policies and mechanisms for patent management and risk control, employing artificial intelligence tools to systematically manage the quantity and quality of employee patent applications. Externally, close coordination and cooperation with patent authorities in major local and international markets are maintained to enhance examination efficiency and obtain high-quality patent protection. Effective measures are also implemented to mitigate patent risks, and specific products are monitored for competitors' activities and market and patent analysis.
- Copyright Management
- The company has established copyright management regulations and procedures to govern the acquisition, preservation, and maintenance of copyrighted works.
- Protection of business secrets
- Trade secrets are vital to the company's operations and technological core. Primax Electronics has formulated measures and procedures for managing confidential information and protecting trade secrets. Employee codes of conduct and employment contracts stipulate relevant rules, and educational training is conducted to emphasize the importance of trade secrets and protective measures.
Primax Group is committed to protecting customer information security to safeguard customer rights. The company has established management procedures for customer privacy and confidential information, adhering to the principle of "least privilege." Access to sensitive data related to customer projects is granted only after internal authorization, and the Group's information security department conducts regular reviews of security-related procedural documents to ensure timely updates that meet the required level of information security management in line with customer needs and demands.
Cybersecurity organizational structure
Primax Group’s Cybersecurity Management and Continuous Improvement Framework
