Does the Company set and disclose corporate governance code of practice according to corporate governance practice principles for TWSE/GTSM-Listed companies?

The Company has set a corporate governance code of practice, for the protection of shareholders’ rights, to strengthen the functions of the BOD, respect the interests of stakeholders, enhance the transparency of information and relevant rules.
Detailed information can be found on the Company’s website.

Equity structure and shareholder rights.

Has the Company set internal operating procedures to deal with shareholder proposals, doubts, disputes and litigation matters, and does it implement these in accordance with its procedures?

The Investor Relations Department is dedicated to processing shareholder proposals or disputes.

Does the Company have a list of those who ultimately control the major shareholders of the Company?

The Company keeps track of of the shareholding status of directors, managers, and major shareholders holding more than 10%, and provides disclosure according to law.

How does the Company establish its risk management mechanism and firewalls involving related enterprises?

The Company has established appropriate internal risk control mechanisms and firewalls, pursuant to the rules for specific companies or groups related business operations and financial transactions, supervision measures for subsidiaries, procedures for endorsement and guarantee, operational procedures for lending funds to others and procedures for asset acquisition & disposal. Business relations between affiliated enterprises have been evaluated by an independent third party to prevent violations of unlawful transactions.

Has the Company set internal standards to prohibit the use of undisclosed insider information to trade securities on the market?

The Company has enacted the "Insider Trading Prevention Regulations" and "Procedures for Handling Internal Material Information" to prohibit the insiders from using the undisclosed information to trade securities, and stipulated that during the blackout period, directors shall not trade the Company's shares or other equity-type securities during the closed period 30 days before the announcement of the annual financial report and 15 days before the announcement of the quarterly financial report. Directors of the Company are prohibited from dealing in the Company's shares or other equity-type securities from the moment they learn of the material news of the Company prior to the investor conference until the next day after the investor conference, so as to prevent insider trading.

Organization and responsibilities of the Board of Directors

Has the Company established a diversification policy or specific goal for the composition of its Board of Directors and has it been implemented accordingly?

Has the Company establish other functional committees besides the Compensation Committee and Audit Committee?

The Company has already set up the Audit Committee, Remuneration Committee and Nomination Committee, and also set up the Perpetuity Committee, Employee Welfare Committee and Labor Pension Supervision Committee. Other functional committees will be established as needed in the future.

Has the Company set performance assessment rules and methods for the BOD and does it perform this evaluation every year?

Since November 12, 2020, the Company’s Procedures includes “Director and Committee evaluation method”. Evaluations are conducted early, and at least once every three years by an external professional independent organization or an external scholar/expert. The evaluation also specifies aspects of evaluation for each functional committee. The company’s internal performance evaluation for the board of directors in the most recent year is carried out by the directors, using internal questionnaires.

Does regularly evaluate the independence of the CPA?

The independence and suitability of the CPAs are assessed by the Board of Directors on a regular basis every year. When discussing the independence and suitability of the CPAs engaged by the Board of Directors, the Company is required to present the curriculum vitae of the CPA recommended, along with the declaration of independence of each CPA (not in violation of Professional Ethics Bulletin No. 10) and AQI information compiled by "Guidelines for Compiling Audit Quality Indicators (AQI) by Accounting Firms" (including 13 indicators from five major aspects, namely professionalism, independence, quality control, supervision, and innovation ability) for the Board of Directors to evaluate. On March 15, 2023, the board of directors of the Company reviewed and approved that all certified accountants meet the evaluation criteria of independence and suitability of the Company (there is no direct or material indirect financial interest with the audit customer, no excessive reliance on a single customer's source of remuneration by the firm, and no significant close business relationship with the audit customer).

Does the Company appoint competent and appropriate corporate governance personnel and corporate governance officer to be in charge of corporate governance affairs (including but not limited to furnishing information required for business execution by directors, assisting directors’ compliance of law, handling matters related to board meetings and shareholders’ meetings according to law, and recording minutes of board meetings and shareholders’ meetings)?

In aims to implement corporate governance, assist directors, and protect investor rights; the Company has passed a resolution on 2019/05/14 board meeting and has appointed competent and appropriate corporate governance personnel. The Company has established full-time financial officer, Huang, De-cai as responsible for corporate governance related matters. Huang has accumulated over twenty years of financial manager expertise and experience. Primary responsibilities include the following:

Does the Company establish communication channels and dedicate section for stakeholder on its website to respond to important issues of corporate social responsibility concerns?

Has the company appointed a professional stock affairs agency for shareholders affairs?

The Company authorized “Grand Fortune Securities Co., Ltd.” as stock service agency to handle shareholder transactions.

Disclosure of information

Does the Company set up website to disclose financial operations and corporate governance information?

The Company has placed financial and corporate governance information of each year on its website.

Has the Company adopted other measures (such as English website, a designated person responsible for the collection and disclosure of information, implementation of the spokesman system, the legal entities announcements uploaded to website, etc.) to disclose information?

Does the Company announce and report the annual financial statements within two months after the end of the fiscal year, and announce and report the first, second, and third quarter financial statements as well as the operating status of each month before the prescribed deadline?

The Company’s annual financial report and the first, second, and third quarter financial reports were announced and submitted within the time limit specified by the law. In addition, since June 2019, the Company’s revenue information has been disclosed in advance on the 5th of the following month. However, the annual financial report has not been announced and filed within two months after the end of the fiscal year.

Does the Company have other important information for better understanding the Company’s corporate governance system (including but not limited to interests and rights of employees, care for employees, relation with investors, relation with suppliers, relation with interested parties, continuing education of directors and supervisors, execution of risk management policies and risk measuring standards, execution of customer policies, liability insurance for the Company’s directors and supervisors)?

Please specify the measures adopted by the Company to improve the items listed in the corporate governance review result from Taiwan Stock Exchange's Corporate Governance Center and the improvement plans for items yet to be improved