Regulatory Compliance

Committed to Legal Compliance and Governance Excellence

ASEH conducts all business activities in strict compliance with applicable laws and regulations. To ensure legal compliance, we maintain regular updates on domestic and foreign laws and policies that affect our operations, and prioritizes regulatory compliance at all of our business locations. All of our subsidiaries are required to comply with all applicable laws and regulations in the location where they operate.

The company’s Corporate Governance Officer and Regulatory Compliance Department support board directors and management on regulatory compliance matters, and supervise activities at our subsidiaries to ensure compliance with relevant laws and regulations. The company’s regulatory compliance framework is implemented through four core processes: managing regulatory inventories, staying updated with current laws and regulations, identifying changes, and reviewing legal compliance on a regular basis. These four pillars ensure the continuity and effectiveness of regulatory compliance. We have also introduced risk control mechanisms and management systems to assess and promptly mitigate any legal compliance risks across all our operations. Accordingly, our subsidiaries are required to promptly report, via management systems, all incidences subject to corrective actions mandated by regulatory authorities or any penalties imposed. The responsible subsidiary shall also conduct a root cause analysis and implement corresponding improvement plans. Both the regulatory compliance department and audit department will verify and ensure the implementation of corrective actions, reporting the status to the board of directors annually.

Throughout 2024, the company continued to enhance regulatory compliance audits across all subsidiaries and strengthen management in the fields of environment, health and safety. The United States’ Export Administration Regulations (EAR), Clean Competition Act (CCA) and the European Union’s Carbon Border Adjustment Mechanism (CBAM), are of particular significance to the technology sector, and are thus classified as our company’s key compliance focus areas. The company also closely monitors the development of EU sustainability legislation, including the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Due Diligence Directive (CSDDD). In Taiwan, we focus primarily on the Taiwan Securities and Exchange Act, Labor Standards Act, Occupational Safety and Health Act, Fire Services Act, Climate Change Response Act, Energy Administration Act, Renewable Energy Development Act, Gender Equity in Employment Act, Sexual Harassment Prevention Act and National Security Act, and other relevant regulations. As part of our regulatory compliance practices, we diligently adapt and modify our internal framework, conduct trainings, and disseminate information to update, educate and communicate with our board of directors, management and all employees.