Board and Management Succession

In accordance with the Company's Articles of Incorporation and the Rules Governing the Election of Directors, the Company adopts a candidate nomination system. In the event of an election of the Board of Directors or a vacancy in the Board of Directors, the Board of Directors shall take into consideration the diversity policy of the Board of Directors and the results of the evaluation of the performance of the Board of Directors, and the principle that the number of directors who are also employees shall not exceed one-third of the number of seats on the Board of Directors. In addition to their professional background (e.g., accounting, industry, finance, marketing, etc.) and expertise (e.g., marketing skills, operational judgment, accounting and financial analysis, management skills, industry knowledge, international market perspective, leadership skills, etc.), their values should also be consistent with the Company's culture, and they should be selected by the shareholders from a list of candidates. Each year, the Company arranges at least six hours of refresher courses for each director, covering topics such as corporate finance, business, commerce, legal affairs, accounting, risk management, corporate sustainability or internal control systems, so that directors can effectively perform their duties through continuous training. The current Chairperson, An-Ting Chung, joined the Board of Directors in 2007 and was the manager of the sales division. She has more than 10 years of experience in marketing and operation management in the Company and has a rich industrial background. She was elected by the Board of Directors as Chairperson in 2020. In the future, she will promote the participation of directors in the operation of the Company and train suitable board members for succession.

In response to the business development of the organization, the Company has planned the cultivation mechanism of key management according to the human resources inheritance needs. In addition to recruiting outstanding talents from outside, we also actively cultivate senior executives with potential to enhance work exchange and experience transfer, and increase their experience through occasional job rotation or increasing their scope of responsibilities, and select reserve talents from them. The selection criteria include professional knowledge, skills and performance, personality traits and mentality, interpersonal relationship and potential, as well as incorporating the company's values, mission and vision, and future goals in the succession consideration. To fill the skills gap of potential talents, they are encouraged to attend Master of Business Administration classes to ensure that key management personnel are equipped with business management skills and to strengthen their professional skills. The Company has been arranging for senior managers to attend the Board of Directors' meetings so that they can participate and familiarize themselves with the operation of the Board of Directors. Through interaction with the Board of Directors, they can expand their practical experience in related fields and develop their decision-making judgment and leadership ability. Finally, through the performance appraisal system, the results of each year's employee performance appraisal are captured and used to assess and review suitable future successors for the Company. The current General Manager, Tim Chiang, has served as our Executive Assistant, Spokesperson, and Department Director of Administration, and has taken over the role of General Manager since 2022.