Performance Evaluation

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.

Performance Evaluation Indicators

Board of Directors

Participation in the operation of the company
Improvement of the quality of the Board of Directors'decision making
Composition and structure of the Board of Directors
Election and continuing education of the directors
Internal control

Board members

Alignment of the goals and missions of the company
Awareness of the duties of a director
Participation in the operation of the company
Management of internal relationship and communication
The director's professionalism and continuing education
Internal control

Functional committees

Participation in the operation of the company
Awareness of the duties of the functional committee
Improvement of quality of decisions made by the functional committee
Makeup of the functional committee and election of its members
Internal control

Internal Performance Evaluation

The company has completed the internal performance evaluation of the Board of Directors for 2025 (evaluation period: 2025.1.1-2025.12.31). The evaluation scope includes the "Board of Directors", "Individual Directors", "Audit Committee" and "Remuneration Committee.” The evaluation results will be reported to the Board of Directors in the first quarter of 2026.

The overall evaluation results for the Board of Directors and all functional committees for 2025 have been rated as "Excellent". The attendance rate of the Board and all functional committees reached 100%, with all directors actively participating in and diligently supervising the Company's operations, and each functional committee effectively performed its duties, demonstrating that the Board operates well and corporate governance can be effectively enhanced.The performance evaluation results are as follows:

The Board of Directors

Individual Directors

Audit Committee

Remuneration Committee

External Performance Evaluation

The company commissioned the "Taiwan Investor Relations Institute (TIRI)" to conduct the external performance evaluation of the Board of Directors for 2024. The assessment covered five aspects: (1) Board composition and professional development, (2) Quality of decision-making, (3) Operational efficiency, (4) Internal control and risk management, and (5) The Board's involvement in corporate social responsibility. The evaluation was conducted through a review of company-provided documents, self-assessment questionnaires, and on-site interviews. The evaluation results will be reported to the Board of Directors in the first quarter of 2025.

Independence of the External Institution

The "Taiwan Investor Relations Institute" has no business relationship with the company and maintains its independence. It is neither an affiliate of the company nor involved in any commercial relationship that could affect its impartiality. The evaluation members and their second-degree relatives do not hold any positions with significant influence in the company and have no direct or indirect financial interests or received gifts from the company. An independence statement has been provided.

Recommendations

The "Taiwan Investor Relations Institute" noted that the company's Board of Directors demonstrates diversity and a well-structured composition. All Board members actively participate in meetings and continuously engage in professional development to stay updated on the latest knowledge, thereby enhancing their ability to fulfill their supervisory responsibilities. Recommendations to improve corporate governance and Board operations include: increasing female director on the Board, elevating the Sustainability Committee to the Board level, having the Board supervise risk management, obtaining third-party verification for sustainability reports, issuing sustainability reports in English, and holding at least two investor conferences annually.

Improvement Plans

The company has adopted the recommendations provided by the "Taiwan Investor Relations Institute" and has planned to obtain third-party verification for 2025 sustainability report and to issue an English version of the report. Additionally, the company will hold at least two investor conferences each year. The company is actively seeking female Board candidates and plans to increase female director during the Board election in 2026. The company will continue to enhance the Board’s involvement in sustainability and risk management based on future business developments.

Please refer to the Board of Directors External Performance Evaluation Certification and Report.