Pua Khein Seng, Chairman Phison Electronics Crop.

“Making society and the environment a better place” is the sustainable development responsibility of Phison. This responsibility is based on the sustainable management of an enterprise,from which an enterprise is able to continuously develop, innovate and make profits.We have always been willing to share the innovation value of our company with stakeholders. So what is this innovation value that drives our sustainable development and profits? I believe that it is the business philosophy of “treating people honestly”. This can also be considered the sustainable business model of our corporate culture.

Core Values: Caring, Trust, Honesty and Concern

In Phison‘s 19 years history, we have overcome many challenges while maintaining high profits. Apart from looking after to our roots, what really matters is the business model of “Trust and Cooperation” we chose in running the company. No matter how we treat employees or how we deal with suppliers and customers, we believe in the principle“doing business is about doing thing right”. If doing business requires engaging in subterfuge then it will not last long. But if you can find your own core values and acquire the ability to innovate and interact with all stakeholders with four main principles, caring, trust, honesty and concern, once the trust is already there then the relationship won't stop at just one or two transactions. It will be a friendship for lifelong.

Future Development

We have always worked with others in a spirit of mutual cooperation. With Toshiba onboard as a shareholder, we have found many trustworthy customers and suppliers that we can form long-term partnerships with. This is a positive feedback cycle. After all, a business must be profitable so that to make sustainable management possible. In the future, Phison will not only continue to build up integrated circuit (IC) capabilities but also expand technological dimensions to broaden product lines.At the same time, in terms of stakeholders, we will give top priority to our employees, followed by suppliers. When the company is profitable, investors will be rewarded as well. This is what we have always done and this will not change in the future!

Truly Caring for Employees

The most important stakeholders are our employees. Phison has a management unit for assisting employees and may even draw on company resources to do so. I believe that employees should treat the company as a source of long-term development and loyalty. The company, in turn, should treat employees like families. There was once an employee who had just given birth but her family was in southern Taiwan, with no one to help her look after the child, she suffered a breakdown. In the end, Phison paid for a nurse from Mackay Hospital to go and help the employee look after her child until suitable child-caring arrangements. Nevertheless, we are not a charity.For employees who are lazy and don‘t make a contribution, or those that break company regulations, take kickbacks, pay bribes in the company’s name, indulge in gambling, loan sharking and other improper activities, they will be dealt with accordingly in order to protect the rights and interests of other hardworking employees.

Taking Care of Small and Medium Suppliers

Guarantee Total Transparency and Honesty to Investors We work with our suppliers on an equal footing.We do our best to ensure their benefits and we do not squeeze on suppliers in order to increase our profits. We feel that we should take care of suppliers, especially small and medium suppliers. Our own survival and profitability depends on the continued existence of them. This is embodied by our four principles "Caring,Trust,Honesty and Concern".

Guarantee Total Transparency and Honesty to Investors

We are a publicly listed company and investors choose to invest us because we are a profitable company with excellent prospects. Where do the profits come from? This is what transparency in corporate governance is intended for. We do not publish any erroneous information that may mislead investors and cause them to lose money by making bad buys. At Phison, we believe in long-term development and this means we look for stakeholders willing to invest for the long-term, not short-term speculators or vultures.

Protect the Living Environment of Our Future Generations

We believe that a company should not sacrifice the rights to life of future generations and engage in such behavior as polluting environment which is harmful to the environment for the sake of increasing profit margins by one or two percentage. Recently, a certain company in Taiwan was discharging hazardous effluents, we sent out letters to more than 100 suppliers and asked them to sign a statement declaring that they did not discharge untreated hazardous effluents from their manufacturing operations. If they did, they would be blacklisted by us. Some suppliers complained that this increased their processing costs, but Taiwan, in our opinion, is already such a small island so we should not harm the environment just for a few extra percentage on profit margin. This was something that we could not tolerate. Suppliers that did not return a signed statement were immediately dropped.