According to Article 20 of the Company’s “Code of Practice on Corporate Governance”, the composition of the board of directors should consider diversification, and formulate appropriate diversification policies based on their own operations, operating styles and development needs, including but not limited to the following two aspects of the standard:

• Basic conditions and values: gender, age, nationality and culture, etc.
• Professional knowledge and skills: professional background (such as law, accounting, industry, finance, marketing or technology), professional skills and industry experience, etc.

The members of the board of directors should generally possess the knowledge, skills and literacy necessary to perform their duties. In order to achieve the ideal goal of corporate governance, the overall board of directors should have the following capabilities:

• • Operational judgment ability.
  • Accounting and financial analysis capabilities.
  • Operation and management capabilities.
  • Crisis handling capability.
  • Industrial knowledge.
  • International market outlook.
  • Leadership ability.
  • Decision-making ability.

The company continue to initiate the chairman succession plan and cultivate high-level internal managers and enter the board of directors to become familiar with the relevant operations of the board of directors. Furthermore, the company emphasizes gender equality in the composition of its Board of Directors, and sets up at least one female director.

Succession planning and operation of board members

• The company has 10 directors, including 3 independent directors and 2 female directors. There are 1 seat for directors over 70 years old, 1 seat for 65-70 years old, 2 seats for 60-65 years old, 3 seats for 55-60 years old, and 3 seats for 50-55 years old. The company’s board of directors is geared towards the goal of rejuvenation. In the future, when re-electing directors, it will continue to invite suitable candidates to join the board of directors in response to the company’s development strategy and changes in the internal and external environment to strengthen the balanced operation of the board.
• The company initiated the chairman succession plan many years ago. After the founder and chairman of the board Mr. Huang led the company for more than 25 years, based on the inheritance of experience and the sustainable operation of the company, the board of directors and supervisors were re-elected in June 2018 and July 2021 by Mr. Chou as the chairman. In the future, we will continue to cultivate high-level internal managers and enter the board of directors to become familiar with the relevant operations of the board of directors.

Succession planning and operation of important management

• The company has been appointed by Mr. Lee as the chief operating officer since September 2019. The position of general manager has been succeeded by Mr. Yu, to initiate the goal of rejuvenating the company’s management at average age. In the future, in response to the development and growth of the company’s operations, there will be more than 10 senior managers such as deputy general managers and associate managers in the group. They are engaged in various fields including but not limited to operations, legal affairs, finance, and accounting, and through continuous experience teaching and strict training, planned to cultivate various professional skills, and train succession candidates to have decision-making judgment and execution ability.
• The company has set up Human Resources Arbitration Committee, held regular meetings to conduct promotion evaluations for important executives, and deepened the company’s centripetal force and business philosophy through work rotation or assignment plans, and selected future management teams that needed for the company’s development.