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.

Succession planning and operation of key management levels：

All directors of the company take more than 6 hours of courses every year to continuously study to master the latest orders and knowledge and enhance the professionalism required for decision-making. On May 8, 2023, the board of directors approved the implementation points of directors' further education. In the future, we plan to submit training plans to the board of directors for review on a regular basis.：

1. Mr. Hu, Shiang-Chi, Chief Strategy Officer, Mr. Obara Masami, General Manager, and Mr. Yang Chaoyu, General Manager of the Taiwan Branch, all take 6 hours of professional courses on directors or corporate governance every year.
2. Mr. Chiang,shuo-yen, the Accounting Supervisor, and Ms. Wu,pei-chieh, the Deputy, shall attend the 12-hour Accounting and Supervisor Continuing Education Course every year.
3. Audit Supervisor Ms. Peng,Lien-Chu and Deputy Ms. Li,hsiu-jung will take 12 hours of relevant professional courses each year and 18 hours of relevant professional courses upon taking up the position to enhance their professional capabilities.
4. Ms. Chuang,ya-hui, Director of Stock Affairs and Human Resources, and Ms. Chang,chen-ting, the agent, continue to participate in the regular legal education courses organized by the competent authority and the Taiwan Public Company Stock Affairs Association every year.