Corporate governance unit

Corporate Governance Unit

Unit Name
Dedicated (part-time) unit
Implementation status
 Corporate Governance Unit
 
Finance Department
In order to promote corporate governance and effectively exercise the functions of the board of directors, the company established a governance supervisor in accordance with Articles 20 and 22 of the "Key Points for the Establishment and Exercise of Powers by the Board of Directors of Listed Companies," which was approved by the board on April 25, 2019. The governance supervisor is held by Lin Ruoxuan, the Chief Financial Officer of the Finance Department (who resigned on December 28, 2023). She possesses the qualification of a practicing accountant in the Republic of China. Additionally, on December 28, 2023, the board approved the establishment of a dedicated governance supervisor, who is held by Senior Manager Weng Yingjie (newly appointed on December 28, 2023). He has more than three years of experience in a financial supervisory position in a publicly listed company, meeting the qualifications as required, and is responsible for overseeing matters related to corporate governance. The main responsibilities are as follows:

1. The company has a dedicated governance unit:

(1) Finance Department: In accordance with the instructions of the competent authority, follow the procedures for "Corporate Governance Evaluation and Corporate Governance Practice Code for Listed Companies"The self-assessment of the provisions should be reviewed, and assist various relevant departments in implementing the corporate governance evaluation indicators issued by the competent authority.Relevant legal regulations. Draft the agenda for the company's shareholders' meeting, board of directors, and audit committee, as well as related meeting materials, and prepare them after the meeting.Minutes of the meeting, assisting directors and independent directors in their appointment and continuing education, providing the necessary information for directors and independent directors to execute their duties, assisting the board.Matters, independent directors shall comply with laws and regulations, and handle announcements, declarations, and changes to registration items within the statutory time limit. Establish and maintain the company's Chinese version website.Information disclosure, revealing the company's financial, operational, and corporate governance-related information and effectiveness. Timely handling of shareholder communication and services (including the companyProblem description and data provision.
(2) Human Resources and Labor Safety and Health Department: Responsible for the Compensation Committee and related matters.
(3) General Administration Office: Responsible for sustainable development and the nomination committee and related matters. The subordinate groups are:
(a) Sustainable Development Promotion Group: Responsible for consolidating the company's sustainable-related policies, systems, or management guidelines, as well as proposing and executing specific promotion plans, continuously communicating and interacting with stakeholders. The specific business execution content should refer to "BM0-007 Corporate Sustainable Development Practices."
(b) Integrity Management Promotion Group: Assists in integrating integrity and ethical values into the company's business strategy, establishes anti-corruption measures for integrity management; regularly analyzes and assesses the risks of dishonest behavior, formulates prevention plans based on this, and implements mutual supervision and checks and balances mechanisms for the risks of dishonest behavior within the scope of business operations; promotes integrity policy advocacy, plans a reporting system, and ensures the effectiveness of execution. Specific business execution content should refer to "BM1-040 Integrity Management Operating Procedures."
(c) Risk Management Team: A unit responsible for promoting and executing risk management, in charge of planning, executing, and supervising matters related to risk management. Specific business execution content should refer to "BM1-050 Risk Management Procedures."
(d) Information Security Promotion Team: Confirm the consistency of information security policies and objectives, operate audits and evaluate the information security system, review information security reports and monitor remediation measures, implement information security education and training programs, and specific business execution content should refer to "IT0-002 Information Security Management Manual."
(e) To seek suitable candidates for directors and the president, submit a list of candidates to the board of directors, and carefully assess the qualifications of the nominated candidates and whether there are any circumstances listed in Article 30 of the Company Act, etc. The candidates for directors should be handled in accordance with the provisions of Article 192-1 of the Company Act, and the independence of the candidates for independent directors should also be assessed.

2. Description of Implementation Status:

Each responsible unit executes corporate governance-related tasks in accordance with relevant regulations, and its operations are normal, complying with regulations and company provisions. An annual report on the execution plan and results is regularly submitted to the board, with the most recent report to the board on 114/12/24.

3. The company governance supervisor completed a total of 15 hours of training in the 114th year.

Continuing Education Institution

CourseName

Continuing education date

Further studiesHours

Taiwan Financial Services Institute Corporate Governance Lecture 114/03/19 3.0

The Republic of China Securities and Futures Market FoundationDevelopment Foundation

114th Year Anti-Insider Trading Promotion Conference 114/05/09 3.0
Taiwan Stock Exchange 2025 Cathay Sustainable Finance and Climate Change Summit 114/07/09 6.0
Chinese National Association of Industry and Commerce 2025 Taishin Shin Kong Net Zero Summit 114/08/22 3.0
 

Intellectual Property Management Unit

Unit Name
Dedicated (Part-time) Unit
Implementation status
Intellectual Property Management Unit Legal and Patent Department 1. This unit is responsible for establishing, executing, and maintaining the company's intellectual property management system, and reporting the implementation results and improvement suggestions of the intellectual property management system to the top management.
2. Regularly report the operational situation to the board annually, with the most recent report date being 114/12/24.
3. The company passed the TIPS (A level) system verification in the year 113 and was awarded the TIPS verification registration certificate, valid from 1/1/114 to 12/31/115.
4. The company's intellectual property management policy is as follows:
(1) Maintain operational flexibility.
(2) Strengthen colleagues' awareness of intellectual property protection.
(3) Enhance the protection of intellectual property results and establish a high-value intellectual property portfolio.

5. The company's intellectual property management goals and implementation status for the year 114 are as follows:
(1) Improve the quality and quantity of patents
Quarterly implementation of patent proposal reward submissions in the 114th year.
The patent annual fee inventory was completed in the third quarter of the 114th year.
(2) Enhance the value of the company's products
◆A total of 55 patent proposals were achieved, with a total of 108 applications submitted in various countries, and invention cases accounted for approximately 66% of the total filings.
The connection rate between patent layout and the company's product/R&D strategy goals is 59%.
◆ Execute 2 patent map projects.
(3) Enhance employees' awareness of intellectual property protection
◆Implement online intellectual property-related education and training courses for new employees.
◆Implement online patent education and training courses for R&D personnel.
In the third quarter of 2025, a physical intellectual property management training course will be held.
(4) Control intellectual property risks
Quarterly publication of the intellectual property quarterly report in the 114th year, focusing on the impact of external legal issues and environmental changes.
Review and inventory of intellectual property clauses in important customer contracts.
◆Implement patent monitoring for important brand manufacturers/products competitors.
(5) Maintain and optimize intellectual property management mechanisms
In the third quarter of 2025, the internal audit activities and management review activities of the intellectual property management system were completed.

Organization and Operation of Internal Audit

1. The purpose of internal audit:

The purpose of internal audit is to assist the board of directors in examining and reviewing deficiencies in the internal control system and measuring the effectiveness and efficiency of operations, while providing timely improvement suggestions to ensure the continuous and effective implementation of the internal control system and to serve as a basis for reviewing and revising the internal control system.

2. Organization of Internal Audit:

The company's audit unit is directly subordinate to the board of directors, and the appointment and removal of the audit supervisor is approved by the board; it is staffed with one internal audit supervisor and an appropriate number of dedicated internal audit personnel.
The appointment, dismissal, evaluation, and salary compensation of internal audit personnel shall be carried out in accordance with the company's authority management regulations, with the approval of the audit supervisor and the chairman.

3. Operations of Internal Audit:

1. Formulation and execution of the audit plan: Based on the results of the risk assessment, an annual audit plan is formulated and approved by the board of directors; any amendments are also subject to the same process. Internal audit personnel conduct checks according to the audit plan and issue written audit reports and follow-up reports, which are regularly submitted to the audit committee for review.
2. The internal audit unit reviews the self-assessment results of internal controls from each unit and subsidiary, along with the improvement status of internal control deficiencies and anomalies discovered by the audit unit, serving as the main basis for the board of directors and management to evaluate the overall effectiveness of the internal control system and to issue the internal control system declaration.

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