Base on Daxin‘s Articles of Incorporation, the board directors resolved to re-elect 8 directors, including 4 independent directors before the expiry of the tenure of Daxin‘s 6th Board of Directors, at the 2023 Annual General Shareholders‘ Meeting. The period for the nomination of directors was from April 10, 2023 to April 19, 2023.

According to the Article 192-1 of the ROC Company Law, Daxin announced the following items on February 22, 2023: the period for accepting the nomination of director candidates, the number of directors to be elected, the place designated for accepting the roster of director nominees, and other necessary matters. Any shareholder holding 1% or more of the outstanding shares of the Company may nominate candidate(s) for directors in writing, provided that the total number of director nominees shall not exceed the number of the directors to be elected. Any shareholder willing to make a nomination may submit the name(s), educational background, past work experience of the nominee(s), and other relevant documents signed and provided by each nominee. All of the above documents shall be delivered or sent to Daxin Materials Corp, Finance Dept. (No. 15, Keyuan 1st Road, Central Taiwan Science Park, Taichung City, 40763 Taiwan, ROC.) via registered post during the nomination time period.

During the above submission period, Daxin didn‘t receive proposals from shareholders who holding 1% or more of the outstanding shares of Daxin.

On May 3, 2023, according to Article 192-1 of the ROC Company Act, the Board of Directors nominated 8 candidates, Cheng-Yig Lin, Tsung-Hsing Kuo, Chin-Cheng Pan (Representative of  Eternal Materials Co., Ltd.), Ting-Li Lin (Representative of Konly Venture Corp.), Xin-Wu Lin (independent director), Wei-Shun Cheng (independent director), Chiao-Mou Cheng (independent director), and Chih-Chun Tsai (independent director), and approved to appoint the above nominated candidates to stand for election at Daxin‘s 2023 Annual General Shareholders‘ Meeting.

The Company‘s "Rules for Performance Evaluation of Board of Directors" were revised and approved by the Board of Directors on November 6, 2024. The policy clearly defines the scope, covering the evaluation of the Board of Directors, individual directors, and functional committees.

An internal performance evaluation of the Board of Directors shall be conducted annually. The evaluation criteria are divided into five grades: Excellent, Very Good, Good, Fair, and Needs Improvement. Additionally, an external evaluation shall be conducted by an independent professional institution or a panel of external experts and scholars at least once every three years. The results of both internal and external performance evaluations shall be completed by the end of the first quarter of the following year and reported to the Board of Directors.

The criteria for evaluating the performance of the Board of Directors, covering the following five aspects:
1. Participation in the operation of the company;
2. Improvement of the quality of the Board of Directors‘ decision making;
3. Composition and structure of the Board of Directors;
4. Election and continuing education of the directors; and
5. Internal control.

The criteria for evaluating the performance of the Board members, covering the following six aspects:
1. Alignment of the goals and missions of the company;
2. Awareness of the duties of a director;
3. Participation in the operation of the company;
4. Management of internal relationship and communication;
5. The director‘s professionalism and continuing education; and
6. Internal control.

The criteria for evaluating the performance of functional committees, covering the following five aspects:
1. Participation in the operation of the company;
2. Awareness of the duties of the functional committee;
3. Improvement of quality of decisions made by the functional committee;
4. Makeup of the functional committee and election of its members and
5. Internal control.

Election SystemElection System
The company‘s directors are elected by the shareholders‘ meeting in accordance with the "Articles of Incorporation" and the "Rules for Director Elections" through a candidate nomination system. The selection of directors should consider the Board‘s overall composition, with its structure based on the company‘s operations, major shareholders‘ shareholding structure, and operational needs, to determine the appropriate number of seats.

Diversity Policy
To promote the sound development of the Board and strengthen corporate governance, the composition of the Board is guided by the company‘s “Corporate Governance Principles” when planning for succession. In addition to ensuring that directors who are also company executives do not exceed one-third of the total number of Board seats, diversity should also be considered, including factors such as gender, age, professional knowledge and skills, and industry experience. Please refer to the Diversity of Board Members and the Annual Report.

Performance Evaluation
In accordance with the company‘s "Rules for the Performance Evaluation of the Board of Directors," an "Internal Performance Evaluation" is conducted annually, while an "External Performance Evaluation" is conducted every three years. The results of these evaluations serve as a reference for director elections.