Ethical Business Practices
| Evaluation Item | Compliant | Summary of Implementation | Differences from TWSE Corporate Governance Best Practice Principles |
|---|---|---|---|
| 1. Has the company established and disclosed its Corporate Governance Best Practice Principles based on the TWSE guidelines? | ✔ | The Board of Directors adopted the "FI-33 Corporate Governance Best Practice Principles" on May 4, 2020, and disclosed it on the Market Observation Post System (MOPS). | No significant differences. |
| Sub-item | Compliant | Summary | Differences |
|---|---|---|---|
| (1) Has the company established internal procedures for handling shareholder suggestions, disputes, and litigation, and implemented them accordingly? | ✔ | A spokesperson and deputy spokesperson handle shareholder suggestions and disputes. | No significant differences. |
| (2) Has the company identified its major shareholders and their ultimate controllers? | ✔ | The company tracks changes in insider shareholding and accesses shareholder rosters via its stock affairs agent. | No significant differences. |
| (3) Has the company established risk management and firewall mechanisms with affiliated enterprises? | ✔ | Governed by FI-09 and FI-08 procedures, with regular audits. | No significant differences. |
| (4) Has the company set rules prohibiting insider trading based on non-public information? | ✔ | The FI-29 Insider Trading Prevention Guidelines are in place and enforced. | No significant differences. |
| Sub-item | Compliant | Summary | Differences |
|---|---|---|---|
| (1) Has the company implemented a board diversity policy and specific management goals? | ✔ | The board is composed with diversity in mind (gender, age, nationality, expertise). Independent directors make up one-third of the board. | No significant differences. |
| (2) In addition to the Compensation and Audit Committees, has the company voluntarily established other functional committees? | ✔ | In addition to mandatory committees, the Sustainability Development Committee was established on April 29, 2025. | No significant differences. |
| (3) Has the company adopted board performance evaluation measures and regularly evaluated board performance? | ✔ | Based on the HR-127 evaluation framework, annual performance reviews are conducted. | No significant differences. |
| (4) Does the company regularly assess the independence of its CPAs? | ✔ | Annual CPA independence assessments are reviewed by the Audit Committee and the Board. AQIs are also evaluated starting in 2025. | No significant differences. |
| Compliant | Summary | Differences |
|---|---|---|
| ✔ | The Board appointed Mr. Wen-Kuo Chiu as Corporate Governance Officer on April 29, 2025. Designated staff support board/shareholder meeting preparations, company registration, and information disclosure. | No significant differences. |
| Compliant | Summary | Differences |
|---|---|---|
| ✔ | The company maintains dedicated communication channels and a stakeholder section on its website. Information is regularly updated on MOPS. | No significant differences. |
| Compliant | Summary | Differences |
|---|---|---|
| ✔ | Shareholder meeting affairs are handled by CTBC Bank's Stock Transfer Agency Department. | No significant differences. |
| Sub-item | Compliant | Summary | Differences |
|---|---|---|---|
| (1) Has the company set up a website disclosing financial and governance information? | ✔ | Yes, and regularly updated per disclosure regulations. | No significant differences. |
| (2) Has the company adopted other disclosure measures (e.g., English website, spokesperson system, etc.)? | ✔ | Designated staff manage disclosure and maintain a functioning spokesperson mechanism. | No significant differences. |
| (3) Does the company disclose financial reports and monthly revenue within regulatory deadlines? | ✔ | As an emerging stock company, monthly revenue is disclosed before the 10th of each month. | Reports are filed according to Emerging Stock Market rules. |
| Compliant | Summary | Differences |
|---|---|---|
| ✔ | Employee Rights: Equal employment, anti-harassment policies, regular labor-management meetings, health checks, and training. Employee Care: Support for major life events and illnesses. Investor Relations: Dedicated stock affairs personnel and timely disclosures. Supplier Relations: Long-term partnerships. Stakeholder Rights: Open communication channels and CSR responsibility upheld. Director Training: Governance courses and legal updates provided. Risk Management: Internal rules established for control and assessment. Customer Policy: Stable relationships maintained. D&O Insurance: Directors are insured. | No significant differences. |
9. Corporate Governance Evaluation by TWSE
Not applicable — the company is currently not included in the TWSE Corporate Governance Evaluation scope.