Performance Evaluation

1. Purpose

In order to implement corporate governance and enhance the functionality of the company's board of directors, performance goals have been established to improve the efficiency of the board's operations.

This method is established in accordance with Article 37 of the Corporate Governance Best Practice Principles for Listed Companies, for compliance.
The company has approved the "Performance Evaluation Measures for the Board of Directors of Meilut Industrial Co., Ltd." by the Board of Directors on July 30, 2020.

At the end of each year, the performance evaluation of the board of directors for that year is conducted, and at least once every three years, an evaluation is conducted by an external professional independent organization or a team of external experts and scholars.
The evaluation subjects include the overall board of directors (functional committees) and the performance of individual board members.

1. The internal performance evaluation of the board of directors of our company includes five major aspects:

(1) The level of participation in the company's operations.
(2) Improve the quality of board decision-making.
(3) Composition and structure of the board of directors.
(4) Appointment of directors and ongoing education.
(5) Internal control.

2. The measurement items for self-performance evaluation of board members include six major aspects:

(1) Grasping the company's goals and missions.
(2) Awareness of Director Responsibilities.
(3) The level of participation in the company's operations.
(4) Internal relationship management and communication.
(5) The professionalism and continuous education of directors.
(6) Internal control.

3. The measurement items for the performance evaluation of the Audit Committee include five major aspects:

(1) The level of participation in the company's operations.
(2) Awareness of the responsibilities of the Audit Committee.
(3) Improve the decision-making quality of the audit committee.
(4) Composition of the Audit Committee and Selection of Members.
(5) Internal Control.

4. The performance evaluation measurement items of the Compensation Committee include four major aspects:

(1) The level of participation in the company's operations.
(2) Awareness of the responsibilities of the Compensation Committee.
(3) Improve the quality of decision-making in the compensation committee.
(4) Composition of the Compensation Committee and Selection of Members.

5. The performance evaluation measurement items of the Sustainability Development Committee include four major aspects:

(1) The level of participation in the company's operations.
(2) Awareness of the responsibilities of the Sustainability Development Committee.
(3) Improve the decision-making quality of the Sustainability Development Committee.
(4) Composition and member selection of the Sustainability Development Committee.

The indicators for the above performance evaluation should be established based on the operations and needs of the company to ensure that the content is suitable and applicable for the company's performance evaluation.

二、Board performance internalEvaluation methods and standards

1. The evaluation is compiled by the finance department, using internal self-assessment questionnaires from each evaluated unit. It is based on five parts: the operation of the board of directors, the participation of directors, the operation of the compensation committee, the audit committee, and the sustainability committee. This includes assessments by directors on the operation of the board, assessments by directors on their own participation, assessments by compensation committee members on the operation of the committee, assessments by audit committee members on the operation of the committee, and assessments by sustainability committee members on the operation of the committee.

2. The performance evaluation results will serve as a reference for the selection or nomination of directors, and the performance evaluation results of directors and functional committee members will be used as a reference for determining their individual salary compensation.

3. After the questionnaires are fully collected every December, the company's finance department will analyze them according to the aforementioned methods, report the results to the board of directors in the first quarter of the following year, and propose ways to strengthen improvements based on the directors' suggestions.

3. Internal Evaluation Results of the Board of Directors' Performance

The internal performance evaluation of the board members, board of directors, compensation committee, audit committee, and sustainability committee has been completed in December 2025 and will be disclosed after being submitted to the board of directors on February 25, 2026.

2. The performance evaluation results of the Board of Directors and functional committees for the year 2025 are as follows:

(1).The company completed the performance evaluation of the board of directors, board members, compensation committee, and audit committee in December 2025, and will present the evaluation results at the board meeting scheduled for February 25, 2026.
(2). The achievement rate of the assessment items for this year is between 99% and 100%, resulting in a grade of excellent or above, indicating that the current system and execution results of the company's board members, board of directors, and various functional committees are still sound, with no suggestions for improvement.

四、Board performanceExternal evaluation methods, standards, and results

In December 2025, our company commissioned an external organization, the "Taiwan Board Performance Association," to conduct an evaluation of the board's effectiveness from January 1, 2023, to September 30, 2025. The organization appointed three evaluation experts to assess seven major aspects: "Board Composition and Structure," "Selection and Continuing Education of Directors," "Board Participation in Company Operations," "Enhancing the Quality of Board Decisions," "Internal Control," "Sustainable Development," and "Value Creation." They designed a total of forty indicators based on these aspects, using online self-assessment questionnaires and on-site visits for evaluation. The organization and the executing experts have no business dealings with our company and maintain independence. They submitted the evaluation report on January 21, 2026, and our company reported the results to the board on February 25, 2026, seeking improvements. The overall evaluation, recommendations, and our company's implementation of improvements are as follows:
 

1. Comprehensive performance evaluation results:
Overall, the governance and operation of the company's board of directors have been able to meet the relevant standards proposed by the Taiwan Stock Exchange for corporate governance practices and board performance evaluation. The specific advantages of the company's board governance include:

(1) The current board members have professional backgrounds covering diverse fields such as electrical engineering, mechanical engineering, business management, electronic communications, marketing and strategic management, accounting, and electronic engineering. Furthermore, female directors account for 22%, ensuring a structure that combines expertise and gender diversity, in line with the company's operational and sustainable development needs.
(2) Directors actively attend various meetings and engage in thorough discussions of proposals, and they also propose textual amendments or requests for supplementary information, demonstrating the governance spirit of the board's diligent review.
(3) The company holds an orientation seminar for newly appointed directors, providing not only relevant promotional manuals regarding the regulations of directors and supervisors as well as securities market laws, but also explaining the company's organizational structure, operational plans, the board of directors and functional committees, and internal audit operations through presentation meetings, effectively assisting new directors in becoming familiar with the company's operations and governance responsibilities.
(4) The company specifically implements succession plans for the board of directors and key management levels, selecting management to participate in learning about board operations, and successfully cultivating new directors; at the key management level, a systematic structure of "strategic talents," "core talents," and "emerging talents" is established, comprehensively deepening the leadership, strategic thinking, and forward-looking vision of the management team.
(5) The manager compensation system has incorporated performance measurement into ESG indicators, which helps guide the senior management team to implement the company's sustainability issues.
(6) The company has established a Sustainable Development and Nomination Committee to actively promote ESG strategies and measures. It continues to disclose a sustainability report assured by a third party every year, and has received certifications such as the S&P Global 2025 Sustainability Yearbook, MSCI ESG rating of A, EcoVadis Silver rating, the Global Citizen Award, and the TCSA Taiwan Corporate Sustainability Gold Award, fully demonstrating the company's outstanding performance in sustainable development.
(7) The board of directors demonstrates self-discipline. In addition to conducting internal self-assessments of the board and functional committees annually, an external professional organization is also commissioned to perform a performance evaluation every three years. This is the company's third external evaluation, showcasing the board's strong accountability and commitment to continuous governance optimization.
(8) The company has purchased Cyber Risk Insurance to reduce the risk of loss and liability caused by business interruptions, and has joined the Taiwan Cyber Security Executive Alliance to effectively strengthen its information security mechanisms.

2. The recommendations for improvement, plans, and implementation status in the company's board report for the year 2026 are as follows:

The company will continue to enhance the effectiveness of the board of directors based on the optimization suggestions provided by the Taiwan Corporate Governance Association.

Board Performance Evaluation Completion Certificate (Please click this link)

5. Evaluation of the independence and suitability of the certified public accountant in 2024:

公The board of directors conducts an annual assessment of the independence and competence of the certified public accountant based on audit quality indicators (AQIs).
The board conducted an assessment on December 28, 2023, considering the Audit Quality Indicators (AQIs) and approved the independence and suitability of the certified public accountant. For details on the procedures and standards, please refer to the Audit Committee's standards and results for the assessment of the independence and suitability of the certified public accountant in 2024.