Governance

Integrity, risk management and transparency

Board Composition

HMD Biomedical maintains a governance structure designed to support strategic oversight, regulatory compliance, and sustainable growth. The board includes members with experience in medical devices, finance, operations, and regulatory affairs, enabling balanced supervision of business strategy, risk exposure, and major investment decisions.

In 2024, the board had seven directors, including three independent directors and two female directors. The company continues to strengthen board diversity and encourages continuing education on emerging regulations, industry trends, and governance responsibilities.

YearBoard SeatsIndependent Director RatioFemale Director Ratio
2022743%14%
2023743%29%
2024743%29%

Business Integrity

HMD embeds business integrity principles into its operating procedures, covering anti-corruption, conflict of interest management, fair dealing, and regulatory compliance. Higher-risk processes such as procurement, distributor cooperation, and sales authorization are subject to documented review, approval, and record-retention controls.

  • Integrity and compliance awareness training for new and existing employees.
  • Conflict of interest declaration and incident reporting mechanisms.
  • Document review requirements for distributors and key suppliers.
  • Management-led investigation and remediation for significant violations.
YearIntegrity Training CoverageConflict DeclarationsMajor Violations
202291%30
202396%40
202499%50

Risk Management

As a medical device manufacturer, HMD manages risks related to product quality, regulatory changes, supply continuity, operational disruption, and foreign exchange exposure. Cross-functional reviews are conducted regularly to identify material risks, assess their impact, and assign mitigation actions to responsible departments.

Key 2024 actions included second-source evaluations for critical components, optimization of finished goods safety stock, monitoring of overseas regulatory updates, and backup drills for important business systems.

YearMajor Risk ItemsMitigation Completion RateSupply Chain Drills
20221275%1
20231182%2
20241090%3

Information Security

Information security is treated as a core element of business continuity and stakeholder trust. Management focus areas include R&D files, quality records, supplier information, and internal business systems. In 2024, HMD continued account-right reviews, endpoint protection updates, backup validation, and phishing simulations to strengthen preventive controls.

  • Role-based access control and periodic permission review for key systems.
  • Routine vulnerability remediation and backup restoration testing.
  • Company-wide information security awareness training.
  • Phishing simulation exercises with follow-up improvement actions.
YearSecurity Training CoverageHigh-Risk Vulnerability ClosureMajor Security Incidents
202288%81%0
202395%89%0
202499%96%0

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