Risk Management
GMT has established a comprehensive risk management framework to continuously identify and assess risk factors that may have a significant impact on operations, finances, legal compliance, and sustainable development, and to take appropriate management and response measures to ensure sound business operations and protect shareholder interests. Risk management covers aspects such as financial risk, regulatory compliance, technological evolution, cybersecurity threats, industry changes, supply chain stability, and corporate reputation, and is combined with internal control mechanisms to strengthen overall resilience.
Regarding financial risks, the Company continuously monitors the impact of interest rate and exchange rate fluctuations on operating costs and maintains good working relationships with its banks to stay informed about market interest rates and secure favorable financing terms. Simultaneously, by monitoring exchange rate trends in real time, the Company mitigates exchange rate risks arising from non-functional currency transactions. Furthermore, in response to the potential impact of inflation on costs, the Company has established a flexible pricing mechanism to maintain profit stability.
Regarding regulatory risk management, the company closely monitors changes in domestic and international policies and laws, including labor laws, tax systems, and international compliance requirements. Through internal compliance mechanisms and professional consultation, the company ensures that all operational activities comply with regulations and reduces potential compliance risks.
To address technological changes and information security risks, the company continues to invest 5% to 10% of its net revenue in research and development, focusing on the integration of high-precision automation and motion control technologies, while simultaneously promoting industry-academia collaboration to enhance innovation capabilities. Regarding information security, the company has established "Information Security Management Measures" and strengthens employee awareness of information security through regular training to ensure the safety of information assets.
In addition, the company also attaches great importance to supply chain risk and customer concentration management, maintains diversified and stable cooperative relationships with suppliers, and actively expands its customer base to reduce the risk of concentrated procurement or sales.