Risk Management Operation Status
Submitted to the board of directors on December 30, 2025.
Risk Management Operation Status Report
The company focuses on managing integrated risks, actively pursuing various business activities to increase operating revenue within an acceptable level of risk, and ensuring that an appropriate risk management culture is built and maintained throughout the organization.
The main operational risks identified by Ruentex include strategic risk, operational risk, financial risk, human resource risk, information risk, personal information management, legal compliance, and climate change risk.
The ESG committee members and relevant departments formulate strategies and management objectives for major issues, and report the analysis results and implementation plans to the board of directors regularly (at least once a year).
Based on the assessed risks, the following risk management policies or strategies are established:
| Risk type | Risk items | Response measures |
|---|---|---|
| Strategic risk | Risks may occur in innovative development, organizational reform, and corporate transformation | Regularly analyze the business environment and propose short, medium and long-term action plans and strategic plans in response to changes in the internal and external environment and risks |
| Operational risks | Risks that may arise from stagnation or decline in business performance, customer complaints and disputes during the transaction process, changes in brand dealership, and marketing and advertising | Regularly review the status of plans and strategy implementation, propose improvement plans for problems, and constantly communicate with customers, brand owners, and suppliers to improve operating procedures and quality, increase satisfaction, and create a win-win situation |
| Human resource risks | Risks that may arise from employment, labor-management relations, etc. | Industry-academia collaboration to increase human resources, conduct audits for business trips, salary payment, insurance coverage, and labor retirement contributions to protect employee rights and promote labor-management harmony. |
| Information risks | Risks of information security protection, information interruption, or damage | File security, equipment security, data security inspection, and system recovery operations are in place to ensure information security operations |
| Personal information risks | Collect and use personal information correctly and protect personal information from the risk of leakage | Verify the legality and effectiveness of data protection for the personal data collected, and ensure information system security and anti-hacker attacks to protect the personal information of consumers |
| Regulatory compliance risks | In response to changes in government regulations, the operation process must be changed in a timely manner and risks must be declared correctly | Remind and advise responsible units and departments to publicize laws and regulations to implement the internal audit and internal control system, and cooperate with laws and regulations to make appropriate amendments |
| Financial risks | Risks may arise from major investments, capital allocation, cost control, and exchange rate | In response to the risk of interest rate fluctuations, the Company regularly inquires with the bank on loan interest rate, and refers to the interest rate level of peers and the market, and maintains good interaction with the bank to obtain more favorable loan rates For exchange rate hedging, the Company’s export business cooperates with the payment method, and adopts a stable foreign exchange operation strategy and control operation process to reduce the risk of exchange rate fluctuations The Company does not engage in derivative transactions (such as high-risk, highly leveraged investments) Long-term investment targets (such as bonds, stocks, etc.) are executed after careful evaluation The Company’s endorsement, guarantee, and endorsement/guarantee review procedures shall include the following in detail: a. Necessity and rationality of endorsements and guarantees b. Credit assessment and risk assessment of the endorsed/guaranteed party c. Impact on the Company’s operational risks, financial position and shareholders’ equity d. Whether collateral should be obtained and the appraised value of the collateral e. The handling department evaluates the risk and submits it for signing Loaning of funds to others shall be carefully evaluated according to the Company’s operating procedures for lending funds to others. |
| Climate change risk | Slow sales of products and changes in styles due to the impact of greenhouse effect on global temperature rise and extreme climate |
|