Sustainability
TTY Biopharm’s main vision and greatest social responsibility is improving the quality of human life with scientific innovation. By pursuit of excellent operating performance, TTY Biopharm also embraces the lofty principle of “benevolent corporate operations”, and which represents the core values of the Corporation. Moreover, TTY Emphasizing the operational sustainability with the direction of inclusiveness and economical sustainability.
In response to the trend of corporate social responsibility in recent years, TTY has issued a corporate social responsibility report for five consecutive years (according to the Corporate Governance 3.0- the Blueprint of Sustainable Development, the CSR Report will now be known as the Sustainability Report starting this year.) Through this report, we demonstrate to all the stakeholders by under the goal of sustainable management, the performance data and related management methods implemented for corporate governance, maintenance of patients’ health and safety, responsible products and manufacturing, environmental protection, supply chain management, employee care, and social welfare. We also propose future improvement goals to be implemented in corporate citizenship through concrete actions.
Policies & Goals
| Short-Term Goal | Mid-Term Goal | Long-Term Goal | |
|---|---|---|---|
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Environmental
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1. Organize 2 environmental sustainability promotions every year. 2. Waste management policy- waste resources recycling to reach 3 tons in total. 3. Execute ISO 14064-1 greenhouse gas inventory, and obtain certification. 4. Save 2% power compared to year 2022. 5. Evaluate using environmentally friendly packaging materials and increase the proportion of equipment and product purchases with environmental labels. 6. Enhance the training of toxicity professional management personnel to optimize the toxicity management. |
1. Organize 2 environmental sustainability promotions every year. 2. Waste management policy- waste resources recycling to reach 5 tons in total. 3. Assess green energy purchases or increase energy saving facilities. 4. Carry out water resources recycling. 5. Paper-free office. |
1. Green building plan for future if applicable. 2. Establish a green supplier management system, incorporate into the planning of supplier. 3. Join climate initiative organization or alliance, and declare environmental sustainability, increase ratio of renewable energy. |
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Social
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1. Extensively courage family members of employees to participate in LOHAS activities, and provide appropriate "Employee Assistance Program". 2. 3 years TTY Rice Program to promote public welfare. 3. Daytime hospice care services. |
1. Promote health prevention, pharmaceutical knowledge and sustainable concept incorporated with campus talent system. 2. Consistent care and ensure human rights of employees from infringement through lectures and activities. |
1. Cooperate with medical institution or different industry to build or assist on establishing online consultation APP, and expand the target groups of medical services. 2.In response to climate change and environmental changes, research and develop future demanding products and services. |
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Governance
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1. Reinforce information disclosure as stipulated in the TCFD and SASB. 2. Reinforce information security promotion, and conduct information security scenario simulation and system improvement. 3. Improve business risk management system and structure. 4. More than 30% of suppliers commit to execute ESG. |
1. Consolidate the connection between remuneration of executive managers and sustainable performance, and measure performance from an ESG perspective. 2. More than 60% of suppliers commit to perform ESG. |
1. Create opportunities for sustainable reformation. 2. Cultivate seed trainers and promote corporate ethics culture. |
Since its foundation in year 1960, TTY has strived to R&D, produce, and manufacture international competitive complex generic drugs, and provide high-quality front-end drugs. With our expert sales team, TTY offers a one-stop product and service chain for the international market.
Our employees and suppliers are the reason we are able to grow strong. In return, we adopt the annual sustainable development roadmap to develop value for stakeholders, provide multiple options for patients, and bear social responsibility in three areas: Promotion of Green Transformation, Realization of a Healthy Society, and Steady Development of the Company.
Our employees and suppliers are the reason we are able to grow strong. In return, we adopt the annual sustainable development roadmap to develop value for stakeholders, provide multiple options for patients, and bear social responsibility in three areas: Promotion of Green Transformation, Realization of a Healthy Society, and Steady Development of the Company.
TTY considers the environment from the first stage of operations. The "Promotion of Green Transformation" requires "environmental sustainability is a priority for all operational activities" environmental protection guideline. Including the minimization of energy and material use in the manufacturing process, and good management of water and discharge, our suppliers are incumbent to abide by TTY's supplier management policy to reduce their impact on climate change. This year, the addition of Lean Six Sigma focuses on the systematic method of examining manufacturing procedures to extract efficiency and energy use. ISO 14064-1, a process for quantifying GHG emissions, is also in place to direct our energy conservation methods and emission measures, which expects to improve energy use in all locations.
Regarding social responsibility, we heavily invest in cultivating talents, health education, and caring for the community. We have a 15-year old TTY college internship program, over 360 health education activities of "Regional care for the cancer-affected" at remote campuses spanning 20 years; the recent 2 years for epidemic prevention and public health, TTY donated 1,000 flu vials for CTOC (Chinese Taipei Olympic Committee) in year 2022 to fortify protection and performance.
This year, we returned to basics by initiating a 3-year toxic free rice purchase plan. This health concept, as we always advocate, benefits not only toxic-free farming but also the Andrew Charity Association, and Yu-Cheng and CHENSENMEI Social Welfare Foundation to further benefit society. To extend the opportunities for employees to engage in community service, the paid volunteer leave inspires "labor of love" among our colleagues, encouraging them to do their part for civil responsibility as well as helping us achieve our CSR goals.
Our agenda always features people and public health. In TTY, employees are our most valuable assets. Our welfare plans focus on employees' wellbeing, safety and health are our prime concern in running the corporation. In year 2022, we incorporated the ISO 45001 Occupational Safety and Health Management System, providing holistic protection to all employees. The training system further educates our employees on disease prevention and work safety, ensuring good work conditions, health, wellbeing, and equity, and minimizing occupational injuries and the risk of illness.
In respect of governance, the "Risk Management Center" subordinated to the SDC (Sustainable Development Center) not only monitors environmental changes, identifies significant risks periodically, and reviews the risk management measures adopted by the Company, but also introduced a Task Force on the Climate-related Financial Disclosures (TCFD) risk management system to further align with global trends in year 2022. Furthermore, TTY has been positioned the top 5% of OTC companies for 6 years consecutively in TWSC's evaluation; and was TCSA silver winner in year 2019 and year 2020 respectively, and platinum winner in year 2021. Recognition for our efforts did not stop there. In Asia pacific, TTY was the Health 2.0 Conference USA Outstanding Organization Award winner in April 2022. In August the same year, TTY was won for the second time of the HR Asia's Best Company to Work For in HR Asia award, from among 330 competitors.
TTY is developing in the fields of oncology, anti-infection in severe illnesses, medical treatment, and healthcare. We present quality and consistency to our stakeholders in terms of our medical drugs, diverse medical solutions, and excellent collaborations and services, which are all connected to sustainable value. We have on the horizon key drug development, and the introduction of international medicine, while propelling our communities with positive brand value and impact.
We expect to lead Taiwan's biomedical field, not only in terms of the business but also sustainability. We learn from benchmark organizations and partner with businesses internationally, and seek continuous improvement of our sustainability actions to spread the awareness among employees, the local community, and partner vendors. We work to grow the seeds of sustainability in life and in action, to see them bloom in the beautiful future.
TTY is developing in the fields of oncology, anti-infection in severe illnesses, medical treatment, and healthcare. We present quality and consistency to our stakeholders in terms of our medical drugs, diverse medical solutions, and excellent collaborations and services, which are all connected to sustainable value. We have on the horizon key drug development, and the introduction of international medicine, while propelling our communities with positive brand value and impact.
We expect to lead Taiwan's biomedical field, not only in terms of the business but also sustainability. We learn from benchmark organizations and partner with businesses internationally, and seek continuous improvement of our sustainability actions to spread the awareness among employees, the local community, and partner vendors. We work to grow the seeds of sustainability in life and in action, to see them bloom in the beautiful future.
Lin Chuan
TTY Chairman
TTY Chairman
To properly reflect on impacts to the economy, environment, and society of TTY operations, and issues that may affect stakeholders' decision-making, we gather industrial information, pay close attention to external trends, and survey TTY senior leaders. The following 17 topics of concern, considering the level of impact, are incorporated into the questions in the questionnaires on topics of concern of: Economic performance, ethical management, marketing ethics, talent attraction and retention, subject safety, occupational safety and health, social participation, drug safety, access to medicine, counterfeit drugs, reasonable pricing, supplier management, response to climate change, information security, sustainable development strategies, water resource management, and waste management.
To truly understand the needs and expectations of stakeholders through a diverse range of communication channels, TTY communicates through everyday business dealings, industrial, government, and academic exchanges, routine surveys, and the results of 32 questionnaires completed by senior management and 76 by external stakeholders to identified the 11 material topics accordingly. The priority, which is quite far from that of the previous year, follows stakeholders' level of concerns listed in order: Economic performance, talent attraction and retention, access to medicine, sustainable development strategies, counterfeit drugs, ethical management, drug safety, subject safety, reasonable pricing, supplier management, and marketing ethics.
To truly understand the needs and expectations of stakeholders through a diverse range of communication channels, TTY communicates through everyday business dealings, industrial, government, and academic exchanges, routine surveys, and the results of 32 questionnaires completed by senior management and 76 by external stakeholders to identified the 11 material topics accordingly. The priority, which is quite far from that of the previous year, follows stakeholders' level of concerns listed in order: Economic performance, talent attraction and retention, access to medicine, sustainable development strategies, counterfeit drugs, ethical management, drug safety, subject safety, reasonable pricing, supplier management, and marketing ethics.
Material Topic Management Guideline and Importance
| Material Topic | Management Guidelines and Elements | Importance to TTY |
| Economic Performance | Maintain stable operation is required for a sustainable operation. | TTY is navigating inclusive, sustainable economic growth, and is accelerating the development of generic drugs of specialty dosage forms and new drugs of high barrier and economic value, as well as unmet medical needs, improving the quality of human life with scientific innovation. |
| Attracting and Retaining Talent | Improve the momentum of the corporate growth. | Our talent is our foremost asset. TTY is a friendly workplace, promotes learning, and is an inclusive, innovative incubator where people envision self-positioning and self-value. A comprehensive education system and tailored training plans for employees of high potential and successors, through attract and retain talent so we are well prepared for a changing market and improving our technologies and innovations. |
| Access to Medicine | Ensure to have the high-quality, safe, effective and affordable medicines. | Health promotions or lectures and partnership with NPOs/social organizations dedicated to disease awareness of illness prevention. We worked with the CTOC to fight the flu with 1,000 flu vaccines in year 2022. |
| Sustainable Development Strategies | Enhance corporate governance to reach sustainable operation. | The Sustainable Development Committee (SDC), ethical management implementation of CSR as a core value, and better planned corporate responsibility to drive our sustainable goals. |
| Counterfeit Drugs | Focus on drug safety management, prevent patients from obtaining unsafe counterfeit drugs without unknown conditions, and maintain product traceability, and avoid counterfeiting and related problems from occurring in the supply chain. | All raw materials are sourced from qualified suppliers, and customers of the drug supply chain can be tracked via shipping records. GPS is installed in transportation of drugs to ensure quality of delivery to the designated destination and user safety. The qualified GDP logistic services shows our commitment to intact packing and content quality, eliminating counterfeits in the supply chain. |
| Ethical Management | Strict practice is especially relevant to stakeholders. | The pharmaceutical business works closely with the national economy and people's health, and drives environmental sustainability. In light of this, the Ethical Management Promotion Center takes responsibility for ethical operations and the holistic development of our corporation, as well as the setup of risk assessment procedures to fortify internal control. The third version of “Procedures for Ethical Management and Guidelines for Conduct” of March 2020 continues to prevent dishonesty, bribery, and illegality by directors, managers, and employees. |
| Drug Safety | Drug safety control to make sure quality, safe and effective products are accessible to users. | The pharmaceutical business is directly related to the life and health of users. The API dictates the effectiveness and safety of preparations. As such, TTY uses discretion in reviewing and managing API suppliers of US/EU generic drug makers, which are required to have Taiwan DMF registration, cGMP and PIC/S GMP. TTY's key products fully comply with applicable health and safety regulations. |
| Subject Safety | Enhance quality control of clinical trials in highest standards regarding medical care quality and patient safety, rights, and data credibility. | Development of drugs in TTY follows the Human Subjects Research Act and the Guidance for Good Clinical Practice. Human research and clinical trials for cancer drugs have been approved by the Ethics Committee and regional health authority. Individual cases are insured to protect test subjects' rights. We also have a standard procedure for clinical trial operations, which is executed by fully trained clinical specialists to ensure drug use safety. |
| Reasonable Pricing | To ensure the price is covered by the NHI, and the price adjustment also follows the National Health Insurance Act, fulfilling the goal of quality, safe, and effective drugs at reasonable prices. | TTY operations strictly comply with government regulations and controls to provide safe, effective products at the best quality and reasonable price. Our dedicated team is devoted to quality generic drugs, and applies NHI prices that are fairer to the original makers to balance NHI financial impact. |
| Supplier Management | Enhance management so that the supply chain conforms to laws and regulations, values quality and self-discipline, and improves overall competence and operation flexibility. | TTY evaluates vendors' financial status, organization management, realization of CSR based on Quality Assurance, Stable Production Capacity, Cycle Time Reduction, and Sustainability as a Goal. The system is referred to the Supplier Management mechanism. Annual assessments and risk ratings are given to existing suppliers to facilitate graded management. Questionnaires are distributed to suppliers to evaluate their sustainability. The insight of suppliers' overall condition serves as a reference for each factory when determining supplier qualification. |
| Marketing Ethics | Holding the Company’s ethical operations and regulations by engaging in business with TTY, and realize proper and sustainable business operations. | TTY regards patient medical wellbeing and care as its foremost concern. We adopt business guidelines and codes of conduct following ethical management and health care ethics to ensure good business operations and a sustainable future. |
TTY echoes the 17 Sustainable Development Goals (SDGs) of UNDP (United Nations Development Programme), and implements on the three aspects of corporate governance, social participation and environmental sustainability, with specific management guidelines and beliefs. A “Material Topics of Concern Survey” was launched to enhance the communication and interaction between stakeholders and TTY. We identified the 16 major issues by a diverse range of communication channels with the stakeholders that correspond to the 17 SDGs, and focus on 7 SDGs. Those included SDG 1. No poverty; SDG 3. Good health and well-being; SDG 4. Quality education; SDG 6. Clean water and sanitation; SDG 8. Decent work and econimic growth; SDG 13. Climate action; and SDG 16. Peace, justice and strong institutions for the goals as the main development direction in 2022.
SDGs Highlights:
| Main Aspects | SDGs Index | Practice Actions |
| Environmental |   |
• Established a systematic water resources management program. • The wastewater discharged by the Lioudu Factory, Chungli Factory, Neihu Factory and Pharmaceutical Development Division is satisfactory to national effluent standards. • The COD contained in the effluent of the Lioudu Factory is 22.83 times lower than local standards. • The SS contained in the effluent of the Lioudu Factory is 99.36 times lower than local standards. • The COD contained in the effluent of the Chungli Factory is 19.80 times lower than local standards. • The SS contained in the effluent of the Chungli Factory is 43.24 times lower than local standards. • Reaction plans developed according to risk identification results. • Application of the TCFD to improve disclosure of climate risks and opportunities • Took the initiative to reduce emissions by drafting plans. • ISO 14064-1 GHG inspection |
| Social |     |
• The Yu-Cheng Social Welfare Foundation" charity purchase. • Scholarships and financial aid to children of cancer patients. • Sponsor activities for HOPE Foundation for Cancer Care. • Donations to several social welfare groups and foundations. • Sponsor home care and respite services. • Supported the “Planting a Seed of Hope” project initiated by the Hope Foundation for Cancer Care. • Supported and covered transportation fees for hospice case families. • Supplied 1,130,000 vials of public-fund influenza vaccinations and 270,000 vials of self-pay influenza vaccinations. • Investment in R&D exceeded NTD$1.5 billion for the recent 5 years. • Implemented pandemic prevention measures and provided employees with family care leave. • Started a working-from-home program to reduce the risks of group gatherings. • Provides all employees and their first-degree kinship, up to 4 people, with influenza vaccinations for free, totaling 632 participants in year 2022. • The key products fully comply with applicable health and safety regulations. • Donated 1,000 flu shots to the CTOC. • Summer Internship for 15 years in a row. • Organized “Regional Care for the Cancer-Affected” at remote campuses. • Health promotion for cancer patients and their families. • Speeches to raise awareness of osteoporosis and bone health. • Paid volunteer leave plan. • Supported Yu-Cheng Social Welfare Foundation with the purchase of Himalayan salt as gifts for 27,600 shareholders. • Initiation of the 3-year "TTY Rice" project. • ISO 45001 Occupational Safety and Health Management System certified. |
| Governance |  |
• The average salary of female entry-level employees is 1.48 times that of the basic salary, and 1.51 times for male employees. • No supplier with a significant risk of forced or compulsory labor. • No forced or threat of forced employment or child labor. • Provided whistleblowing channels and rewards system for reporting. • 2 employee complaints were received in year 2022. The first one (5/10/2022) has been investigated and the procedure was completed by 10/11/2022. The second one (15/12/2022) was completed by 5/1/2023. Management team engage in trainings on communication and management to prevent the reoccurrence of similar issues. • Established an Ethical Management Promotion Center to prepare ethical mangement rules and relevant operation procedures. |
Each TTY department communicates with stakeholders through normal business dealings, routine investigations, interview analysis and other methods. The Material Topics to different stakeholders differ according to the nature of business. Therefore, we truly understand the needs and expectations of stakeholders through a diverse range of communication channels, and take into consideration of their perspectives to adjust our operations management. Moreover, we also provide appropriate responses to stakeholders' key concerns.
Establishment of the Sustainable Development Promotion Center
To realize corporate governance, environmental sustainability, social welfare, corporate sustainability, and CSR, on October 7th, 2019, the Sustainable Development Committee was established under the Board of Directors with 5 members nominated from the directors based on the BoD resolution. The Sustainable Development Promotion Center is under the Sustainable Development Committee to enact the responsibility of proposing and executing the relevant policies, systems, relevant management guidelines, and specific action plans. The General Manager acts as the convener, while the Financial Department ensures that the associated policies are promoted appropriately, and the Center makes regular reports to the BoD after reporting to SDC.
With respect to the various sectors of ESG, the Sustainable Development Promotion Center comprises 5 teams of Corporate Governance, Employee Care, Social Participation, Environmental Sustainability, and Product Service. To maintain stakeholders’ reasonable requests and expectations, each team proposed the performance results and future advanced goals of the sustainable topics that they in charge of respectively. It aims to promote business management continuously and duty of social responsibility.
Sustainable Development Promotion Center established the implementation plans for the following year by the end of every year, and proposed to SDC and BoD. The implementation of year 2023 has been reported to SDC and BoD on March 8, 2024 for review, and the 2024 action plan has been reported and approved on November 3, 2023 before executed.
Identification of Stakeholders
TTY references the five principles of the Stakeholder Engagement Standard, AA1000SES 2011, to identify the key stakeholders. The five principles are as follows: (1) Dependency, (2) Responsibility, (3) Tension, (4) Influence, and (5) Diverse Perspectives. The 8 stakeholders identified this year include the government, shareholders/investors, customers (including hospitals and medical institutions, patients, manufacturers, and consumers), employees, suppliers, the local communities, NPOs/NGOs and the media.
TTY references the five principles of the Stakeholder Engagement Standard, AA1000SES 2011, to identify the key stakeholders. The five principles are as follows: (1) Dependency, (2) Responsibility, (3) Tension, (4) Influence, and (5) Diverse Perspectives. The 8 stakeholders identified this year include the government, shareholders/investors, customers (including hospitals and medical institutions, patients, manufacturers, and consumers), employees, suppliers, the local communities, NPOs/NGOs and the media.
Communications with Stakeholders
Each TTY department communicates with stakeholders through normal business dealings, routine investigations, interviews, and questionnaires analyzing their Material Topics of Concern. The topics of concern of different stakeholders vary according to the nature of business; therefore, we looked into the needs and expectations of stakeholders through a diverse range of communication channels, including a year 2020 survey which totaled 120 valid returns, to delve into the issues that grabbed their attention. TTY also took into consideration of stakeholders’ perspectives to adjust operations management. Moreover, we provide appropriate responses to stakeholders' key concerns.
Each TTY department communicates with stakeholders through normal business dealings, routine investigations, interviews, and questionnaires analyzing their Material Topics of Concern. The topics of concern of different stakeholders vary according to the nature of business; therefore, we looked into the needs and expectations of stakeholders through a diverse range of communication channels, including a year 2020 survey which totaled 120 valid returns, to delve into the issues that grabbed their attention. TTY also took into consideration of stakeholders’ perspectives to adjust operations management. Moreover, we provide appropriate responses to stakeholders' key concerns.
Material Topics of Concern
The following table shows the 2023 achievement with stakeholders, which is presented on March 8, 2024, by Sustainable Development Promotion Center to Sustainable Development Committee (SDC)：
The following table shows the 2023 achievement with stakeholders, which is presented on March 8, 2024, by Sustainable Development Promotion Center to Sustainable Development Committee (SDC)：
| Stakeholders | Material Topics of Concern | Engagement Method | Communication Frequency | Communication Performance |
|---|---|---|---|---|
| Government Agencies |
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Visits; Phone; Official letters; Email; Dissemination; GIA (Government, Industry, Academy seminar); Stakeholder Sustainability Topics of Concern Survey | Irregularly |
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| Employees |
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Annual performance interviews and assessment Labor management meetings Personnel announcements; Intranet; Sexual harassment complaint channel; Infringement reports; Stakeholder complaint mailbox; Orientation plan and satisfaction survey; Employee welfare committee; Internal education training and e-learning; External education training subsidies; Stakeholder Sustainability Topics of Concern Survey |
Twice annually Quarterly Irregularly |
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| Customers |
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Exhibition; Academic activities; Educational seminars; Academic platforms; Clinical trials; Factory visits & inspections; Visits; Phone; Email; Letter; Stakeholder Sustainability Topics of Concern Survey | Irregularly | To provide high-quality products and services that meet market needs, TTY interacts with domestic and foreign customers, including via:
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| Investors |
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Annual general meeting; Annual report Quarterly financial report Operational overview announcements Investor conferences Material information announcements; Press releases; Corporate website; Phone; Email; Investor relationship mailbox; Stock affairs and investor relationship contact; Reception of domestic and foreign analysts; Stakeholder Sustainability Topics of Concern Survey |
Annually Quarterly Monthly Quarterly or more frequently Irregularly |
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| Suppliers |
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Supplier questionnaire survey; Supervision on the validity of supplier quality assurance; Supplier audit Email; Phone calls; Visits; Stakeholder Sustainability Topics of Concern Survey |
Annually Irregularly |
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| Local Communities |
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Email; Visits; Phone; Meetings; Education seminars; Stakeholder Sustainability Topics of Concern Survey | Annually or Irregularly |
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| NPOs/NGOs |
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Activity participation; Email; Visits; Phone; Meetings; Stakeholder Sustainability Topics of Concern Survey | Irregularly |
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| Media |
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Media visits; Phone; Press conference; Media press conference; Brand event; Interview; Visits; Stakeholder Sustainability Topics of Concern Survey | Irregularly | To guide media stakeholders to understand the dynamic development of the Company's overall operations and product layout, communication is as follows:
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