FY2017 Summary Report from the sustainability committee.

Frontken Group has been providing innovative solutions and services to both the semiconductor and non-semiconductor industry since 1996. As a responsible company, Frontken is committed to ethical and responsible business practices, environmental sustainability development, and the well-being of our employees and the communities in locations which we operate. In the operation of our business, we dedicate and optimize resources to ensure environmental sustainability and to provide positive impact and returns to shareholders, investors and the society to create sustainable value to our stakeholders. Frontken Group is committed to grow profitably and sustaining our business operation in an environmentally and socially responsible manner that preserves the environment and protects the health and safety of workers, customers and neighboring communities. We provide work environments, products, services and solutions that make safe, productive and efficient use of resources as we strive to achieve our vision. We apply innovation and technology to improve the sustainability performance of our products, services, solutions and operations. We believe sustainable progress is made possible by developing better systems that maximize life cycle benefits, while also minimizing the economic, social and environmental costs of ownership, as reflected in our sustainability principles. We will execute our strategy by working to meet our aspirational sustainability goals. These inclusive efforts are the baseline of our sustainable business practices which extends to all our stakeholders.

This year is the 20th anniversary of Frontken founding. Frontken Group is now the leader in dedicated semiconductor support services. Over the years we have innovated with our customers, and have driven continued progress in technology with our employees, customers, partners and suppliers. We continue to strengthen these commitments to achieve sustainable operations. We have created a unique corporate culture, core values and principles, embedded into each employee’s dedication to diligence in every task.

In FY2017, Frontken Group focused on five ‘’Core Areas for Action on Sustainability’’, these five dimensions of sustainability development are (a) responsible management; (b) responsible innovation and service; (c) responsible green production; (d) responsible workplace; and (e) inclusive society and communities. Based on the material issues we have identified, we have laid out a set of strategies and long term goals in this report as our “Frontken 2025 Vision”. In the long term vision, we aim to benchmark our sustainability development with the GRI Framework and United Nations Sustainable Development Goals by continuing to make efforts in the economic, environmental, and social dimensions of our business, and make a contribution towards resolving environmental and social issues.

2.1. FY2017 Achievement of Sustainability Goals

2.1.1. Responsible Management
Frontken views the sustainable development of its management team characters and capabilities as a key part of its corporate social responsibility. We focus on financial prudence, discipline and integrity with strong risk management. We are committed to high standards of corporate governance to sustain growth and performance, and to safeguard stakeholders’ interest and maximize long-term shareholder value.
2.1.2. Responsible Innovation and Service
Frontken Group has long been the trusted technology partner and service provider to the global semiconductor industry. We are a leader in providing next generations of precision cleaning and coating technology to our customers. We help customers quickly enter into production with our precision cleaning and coating capabilities and provide them with competitive advantage in their products and yield performance. In 2017, we led the advanced precision cleaning and coating in the 10/7nm process technology in Taiwan. We also led the most advanced precision cleaning and coating for the next generation memory wafer process in Singapore.
2.1.3. Responsible Green Production

Frontken Group has continued to improve its green production method to meet the operational challenges that global warming may bring by making progress through innovation. In FY2017, Our production capacity has doubled while processes continue to grow more complex, but through our efforts, unit production average power usage is 12.10 kWh per part produced; the unit production average water usage is 0.14 cubic meter per part; and unit production average waste produced is 0.00013 ton (0.13kg) per part.

In FY2017, We also purchased (to be implemented in FY2018) 378 kWp of green power, directly supporting renewable energy. We continue to adhere to strict waste classification at the source, we have introduced new methods to perform internal recycling of waste water, enabling them to become reusable resources and lowering reliance on outsourcing. Total benefits from waste recycling for the full year exceeded $25k USD.

We are committed to complying with or exceeding all relevant regulatory requirements, to prevention of pollution and to continual improvement in the environmental, health and safety performance of its operations, processes and products.

2.1.4. Responsible Workplace

Frontken strive to groom and retain a diverse and robust talent pool to support and drive our growth through continuous training and development and instilling a strong culture of safety and excellence, whilst encouraging work-life balance. These are implemented through talent development, groom leaders, knowledge training and exchange, health & safety, employee wellness, etc. We employs people based on their talents, without regard to their nationality. We offer good terms of compensation above the industry average, leave and benefits that meet employees’ needs, a variety of training courses, and do our utmost to create a safe and healthy work environment.

In FY2017, Frontken employee Retention Rate (%) is 98.73.

Frontken contributed or invested more than 9,029 hours to train employees.

We have a very low health and safety recordable injury rate of 0.17 hour per 100 Employees.

2.1.5. Inclusive Society and Communities

Frontken aims to be proactive in corporate social responsibility to create a total inclusive society and communities. Through the caring for education of the underprivileged, providing education opportunities, and promoting sports, arts and culture, we encourage employees to participate in public service in reading, guiding, ecology and conservation, and caring for the underprivileged and elderly.

In FY2017, Frontken and its volunteers contributed for a total of 5,398 hours.

We have been supporting schools and non-profit organizations to benefit a total of 10 people.

2.2. Conclusion
Frontken will continue to be committed to deliver value to all our shareholders through sustaining growth in our businesses, empowering lives of people and nurturing communities where we operate. We will also continue to build the company on the foundation of responsible management, responsible innovations, responsible employees and responsible green production and inclusive society and communities. Based on our core values of integrity, commitment, innovation, and customer trust, we hold ourselves to the highest standards of corporate governance. We believe employees are its most important asset, and works actively to build a collaborative team with shared vision, balanced culture and positive values. We provide customers with the most advanced and comprehensive process technologies and services through continuous innovation, green production and sustainable supply chains friendly to the environment, and take action to give back to society.