ETHICAL MANAGEMENT
Business Integrity Procedures and Behavioral Guidelines
Primax Electronics' "Business Integrity Procedures and Behavioral Guidelines" stress integrity. Employees must avoid improper gains, ensure transparency, respect intellectual property, protect partner privacy, and act responsibly in procurement. The company protects informants and offers channels for employees, suppliers, and customers to report issues without fear. Primax supports cultural development, aids the disadvantaged, and engages in charity. Anti-corruption policies are planned for 2023.
All employees to comply with law sand ethical guidelines when performing business activities, whereas suppliers and business partners are bound to sign a "Supplier Statement" in order to create a fair, honest, trustworthy and transparent trade environment.
Positions of special nature including but not limited to procurement, quality control, administration, warehousing and raw material control are rotated on a regular basis. This practice works in favor of reducing risks of improper gain, and keeps the organization active at the same time.
Important Internal Regulations
Company Articles
Rules for Performance Evaluation of the Board of Directors, Primax Electronics Compensation Committee Charter, Audit Committee Charter, Nomination Committee Charter, Risk Management Committee Charter
Corporate Risk Management Policies and Procedures
Procedures for Acquisition or Disposal of Assets, Operational Procedures for Loaning of Funds to Others, Operating Procedures for Endorsements, Corporate Governance Best Practices, Sustainable Development Best Practice Principles, Operational Procedures for Ethical Management and Guidelines of Conduct, Rules for Prevention of Insider Trading
Employee Code of Conduct
All employees should abide by the “Employee Code of Conduct” when carrying out relevant business activities, including upholding personal moral standards, gifting and hosting regulations, protecting operations secrecy, avoiding conflict of interests, abiding by fair transaction, reporting method, and code of disciplinary action.
Primax carries out our corporate mission of “bringing investors and customers the greatest gain and enabling employees to work happily.” To achieve these goals, we need to earn the trust and support of customers, business partners, investors, and the public. Honest, credible, and disciplined employees become fundamental.
Whistleblowing and Disciplinary Principles
Integrity and respect are the basic principles that all employees are bound to adhere. Violators will be subject to disciplinary actions, and employees are encouraged to report misconducts in this regard.
Compliance with Fair Trading
The Company competes fairly and honestly by leveraging its ability to provide exceptional goods and services.
Individual Moral Standards
All conduct must be based upon integrity and respect; acts of violence / discrimination / sexual harassment / fraud / deception are strictly prohibited.
Rules on Gifts and Treatments
Employees are prohibited from accepting cash kickbacks, gifts, vouchers and improper gains or any kind.
Avoidance of Conflicting Interests
Employees must not abuse their job authorities to seek gains for self or for any third party.
Protection of Business Secrets
Business secrets are key to the Company's competitiveness, and therefore must be protected against infringement or improper disclosure.
Business Integrity Training
We organize communication meetings, promotional videos and fun activities each year to convey integrity values in a comprehensive yet easily understandable manner.
Currently, all new recruits are required to undergo 8 hours of orientation within the first month onboard, which includes a 1 -hour introduction to business integrity and ethics.
The training arrangement for existing employees is still under planning, and the future plan is to use online courses for training.
Training Course Attendance Statistics for 2022 New Hires
Total
4,323
employees
Total
4,323
hours
The training coverage
100
%
Training Course Attendance Statistics for 2022 Tymphany Huizhou
In2022, Tymphany Huizhou conducted a 0.5-hour RBA basic education training (including ethics and integrity) for
Total
6,378
employees
Total
3,144.5
hours
The training coverage
100
%
Annual Social Responsibility Training for Suppliers
This is why we have engaged a third-party institution since 2015 to organize annual social responsibility training.
Labor
Health and Safety
Environment
Ethics
In addition to communicating the RBA COCV7.0 standards with all suppliers through the GPMS system, we offered relevant training sessions to let suppliers understand the degree of Primax’s concern about the above issues.
Avoidance of Conflicting Interests
The Company’s "Corporate Governance Code of Conduct" and "Business Integrity Procedures and Behavioral Guidelines" require directors, managers, and board meeting participants to disclose any conflicts of interest. If a conflict exists, they must refrain from discussions and voting on the topic. They also cannot vote on behalf of other directors. The Company's directors strictly adhere to these rules and avoid conflicts of interest.
Robust Internal Audit System
To enforce corporate governance and self-monitoring, Primax Electronics has developed an internal check system based on operating activities of the Company and subsidiaries and Regulations Governing Establishment of Internal Control Systems by Public Companies that incorporates five main elements: "Environment control," "Risk assessment," "Processing of control," "Information and communication," and "Supervision processing."
Operation Audit Unit
- The Company has set up an operation audit unit, including a chief auditor and two dedicated personnel. To ensure the effectiveness of internal control system in accomplishing the Company's operational goals and the effectiveness of self-verification practices across all units, Primax's General Manager serves as the convener of this unit and is fully authorized to inspect and evaluate the internal control system for defects and efficiency. In doing so, we ensure that design and implementation of the system continue to remain effective in helping the board of directors and the management fulfill their duties and supporting sound corporate governance practice.
- The operation audit unit had completed inspection of all internal departments according The operation audit unit had completed inspection of all internal departments according to the 2022 internal inspection plan. Departments are being required to make improvements to the various defects highlighted during inspection, whereas the chief auditor engages independent directors in meetings at least once per quarter to report the current progress of internal audit and control, and reply to whatever queries independent directors may have. Each independent director is constantly updated on internal audit issues, and may call meetings or contact the chief auditor by phone at any time under exceptional circumstances.