Succession planning for board members and key management

1. The selection of directors in our company is based on the "Articles of Incorporation", adopting a candidate nomination system. The "Corporate Governance Best Practice Principles" and the " Procedure for Election of Directors" specify that the composition of the board of directors should consider diversity and state diversification policies, including but not limited to criteria such as basic qualifications and values, professional knowledge, and skills, based on the company's operations, business model, and development demands.
2. The structure of our company's board of directors should be determined based on the scale of business and the shareholding situation of major shareholders, considering practical operational demands.
3. The company's ongoing director succession plan has built a database of potential candidates based on the following criteria：
   1. Integrity, responsibility, innovation, and decision-making ability aligned with the company's core values.
   2. The anticipated contribution of the candidate to an effective, collaborative, diverse, and company-needs-aligned board.
   3. Boards are experts in areas such as corporate strategy and management, accounting and taxation, finance, and law.
   4. The selection process for the director candidate list must comply with qualification reviews and relevant regulations to ensure the identification of suitable new directors when vacancies arise or planning for additional board seats.
4. The company has also established the "Board Performance Evaluation Method," measuring aspects such as control of company goals and tasks, awareness of responsibilities, participation in operations, internal relationship management and communication, professional competence and ongoing education, internal control, and specific opinion expression. This ensures effective board operation and evaluates director performance, serving as a reference for future director selections.

All directors of the company undergo a minimum of 6 hours of continuing education annually to stay abreast of the latest regulations and knowledge, enhancing their professional competence. On May 8,2023, the Board approved the "Director Continuing Education Implementation Guidelines," and future plans for ongoing education will be periodically submitted for Board review.：

1. Senior Executive Vice President, Hu Shiang-Chi, President, Masami Obara, and President of the Taiwan Branch, Yang Chaoyu, should undergo 6 hours of director or corporate governance professional courses annually.
2. CFO, Jiang Shuoyan, and Acting in Charge, Wu Peijie, undergo a continuous 12 hours of accounting and management professional courses annually. The acting person in charge of the CFO is Chen Xiaohui, who undergoes 6 hours of relevant courses annually.
3. Head of Audit, Peng Lianzhu, and Acting in Charge, Dai Cheng-Jun, undergo more than 18 hours of relevant professional courses annually to strengthen their professional capabilities.
4. Stock & Personnel Manager, Chuang Ya-Hui, and Acting in Charge, Chang Chen-Ting, participate annually in routine legal promotion courses organized by regulatory authorities and the Taiwan Public Issuing Companies Stock Association.