Eurocharm TW and VPIC1 measuring room use precision instruments to measure, including three-dimensional, portable three-dimensional, three-dimensional (3.0m x 1.5m), height gauge, inner and outer diameter centimeter, block gauge, tooth gauge, universal testing machine, surface roughness tester, penetration tester, roundness tester, profiler, metallographic microscope, Vickers hardness tester, metal composition analyzer, water content measuring device, X-ray detector and many other instruments. Make sure that the product design and size will not have an impact on the product use process. In terms of product functions, the company’s laboratory uses special testing machines to conduct hardness testing, tensile strength testing, salt spray testing, temperature and humidity environment testing, durability testing, etc. to achieve our quality commitment to customers and ensure product safety, ensure product safety, protect the life and property of consumers. There will be no violations of health and safety regulations related to products and services in 2022.

In 2022, the production volume of motorcycle parts (including purchased parts) is 84,531 thousand (83,729 thousand in-house and 802 thousand in purchased parts), and the weight is 48,432 tons (48,405 tons in own production and 27 tons in purchased parts).

2022 Production Value Table

ItemCapacity
(Thousand piece)
Quantity
(Thousand piece)
Amount
(NT$ Thousand)
Motorcycle Parts91,31883,7295,532,031
Medical Equipment1,070484336,986
Others4,9404,108739,318
Total97,32888,3216,608,335

2022 Product sales

ProductAmount
(NT$ Thousand)
%
Motorcycle3,983,82949.57
Medical Equipment450,1395.60
Recreational Vehicles2,701,23233.61
Other902,15311.22
Total8,037,353100

2022 Main Product (Service) Sales (Supply) Area

Sales RegionsAmount
(NT$ Thousand)
%
Vietnam3,829,67647.6
Other4,207,67852.4
Total8,037,354100

Product Liability

Eurocharm TW’s main customers are Tai Ling and Sanyang. Currently, the Company has obtained the ISO 9001:2015 quality management system and formulated a total of 32 quality-related procedure documents. Among them, a total of 9 documents were revised and 13 documents had new editions in 2022; a management review meeting was held on August 30, 2022, and the Company passed an independent external third-party audit on October 16, 2022. The product design for the brand cars has been strictly regulated, and the safety of the raw materials of the components produced by the Company is in accordance with the regulations of the brand car factories. The components are all in compliance with the local regulations in Taiwan and in countries where the Company has sales.

The major automobile and motorcycle customers of VPIC1 are TOYOTA, HONDA, YAMAHA, FORD, and POLARIS. Medical equipment customers are Invacare and JOCHU. Currently, VPIC1 has obtained ISO 9001:2015 quality management system, ISO 13485:2016 medical equipment quality management system, and IATF 16949: 2016 auto industry quality management system. and formulated quality related. There are a total of 28 procedural documents, and a total of 7 procedures have been revised in 2022. In May 2022, these procedures have been successfully passed the independent third-party external audit. The product design for the brand customer has been strictly regulated. Safety of the raw materials of the components entrusted to VPIC1 are in accordance with the regulations of the brand customers. All products comply with the local laws and regulations of the country where they are sold.4

Main Production Technology Process

Product Guarantee

When the material is inspected to be unqualified, and it can’t be repaired in the factory. The quality control unit shall indicate the reason for the defect on the inspection label, and notify the manufacturer to approve the return. After the approval is withdrawn, the production management unit is responsible for chasing. If it can be repaired in the factory, the quality control unit will notify the manufacturer to come to the factory for repair. If there is any unqualified situation, the quality control unit will fill in the “Quality Abnormal Handling Form” and ask the supplier to put forward countermeasures. If the customer needs the goods urgently, the production management unit can fill in the “Special Purchase Application Form” in accordance with the “Special Purchase Management Operation Regulations”. If unqualified products are found in the manufacturing process, the unqualified products shall be repaired or sent for inspection at the discretion of the production unit.

When the final inspection of the finished product is judged as a substandard product by the quality control personnel, it shall be refurbished or scrapped according to the judgment result, then formulate quantification and analysis. According to the formulate “Pareto Statistical Analysis Chart of Final Defects of Finished Products”, as a plan to reduce defective products, and the plan is tracked and controlled with the “Finished Final Defect Improvement Tracking Control List”.

For unqualified products inspected or occurred during the storage and transportation of materials, the production management unit decides the method of repairing or sending for inspection. If the unqualified products are returned in the factory or from customers, the production management unit will notify the quality control unit to mark it. After the quality control personnel first isolate and then determine the responsible manufacturing unit, the quality control personnel will fill out the “return form” and signing it with the production management staff. After the quality control personnel will hand over the “return form” to the production unit to sign for it, the return procedure is handled by the quality control personnel. At the same time, the quality control personnel should analyze and record the returned products, recorded in the “Defective Handling Record Form” and kept. This information can be provided upon request by the customers, and necessary corrective measures or process changes and modifications can be proposed to prevent the outflow of defective products.

Materials that are judged to be unsuitable for heavy work or other uses shall be processed in accordance with the “Scrap Application Form” in the “Warehouse Management Procedures”. For scrap statistics, please refer to the chapter on waste generation. If it is judged that it is repaired in the factory or returned to the production unit, it shall be implemented in accordance with the “Regulations on the Control of Heavy Work”. No recycled or remanufactured materials are used in the production of input materials. At present, the products are sold beyond the service life, and no product and packaging materials are recycled. In addition, neither Eurocharm TW nor VPIC1 has product recalls in 2022.

2022 Total sales of returnable components

ItemUnitTaiwanVietnam
Total sales of returnable componentsTons185.2247,364
Total sales of componentsTons185.5748,148
Percentage%99.8198.37