Corporate Governance Enhancement
We enhance our core strengths through global resource integration and expand our product marketing efforts worldwide to meet customer demands promptly, ensuring sustained competitiveness and value creation.
Operational Risk Management
We do not engage in high-risk, high-leverage investment activities. PHIHONG uses natural hedges and borrowings in U.S. dollars to reduce its exposure to exchange rate risk. Short-term idle funds are invested mainly in liquid, principal- and yieldsafe capital-protected bank products and time deposits. In addition, cash inflows from the private placement of common stock and the issuance of five-year fixedrate corporate bonds, as well as financing facilities from financial institutions, were used to fund working capital and long-term capital expenditures.
PHIHONG is deeply aware of the significant impact and influence of natural disasters and accidents and other uncertain risk items on the company’s production and operation and employee safety. Therefore, we take a proactive approach to disaster risk management and pursue the highest standards of safety in the power supply industry through rigorous risk management plans and implementation of safety regulations. To ensure that the company can resume normal operation quickly after a disaster (including fire, earthquake, typhoon, water and power outage, war, political unrest, terrorist attack, food poisoning, statutory infectious disease, environmental pollution, etc.), to reduce the loss of company and customer property, and to protect the company’s reputation and employee safety, we respond to and avoid risks with insurances. In 2021, PHIHONG has taken out the following insurance policies to ensure that the risk of damage to or loss of covered property caused by unexpected and unforeseen accidents will be covered during the insurance period. Through insurance planning and fixed insurance premiums, the operational risk is transferred, and the potential loss is minimized.
To protect the company and personal information and internal/external communication systems from loss caused by human factors such as leakage, theft, destruction, and natural disasters, and to reduce the impact on operations, PHIHONG adopts the PDCA (Plan-Do-Check-Act) cycle management model to ensure the achievement of reliability targets and continuous improvement. In 2021, we established the Information Security Committee, which is led by the company’s management, and the responsible unit is the Information Department, with information officer and professional information personnel.
