I. Succession Planning for Board Members
The Company adopts a candidate nomination system for the election of directors, with shareholders electing directors from a list of candidates. In addition to complying with laws and regulations, the selection of directors takes into account the development of corporate governance, future operational needs, and diversity of members.
The Company currently has a total of 9 directors (including 4 independent directors), each of whom possesses expertise in business, financial accounting or management necessary for the operation of the Company, and 3 of whom are also in the key management positions of the Group. Each member of the Board of Directors shall receive at least 6 hours of training annually, and for newly appointed directors, 12 hours of training shall be arranged during the year of their appointment, and a handbook on the laws and regulations related to directors and insiders as well as the points to note shall be provided, so as to acquire new knowledge and become familiar with their roles, functions, responsibilities and obligations on the Board of Directors and to effectively implement the corporate governance system. In 2023, the average number of hours of study per director was 8.3 hours, and the course contents included Taiwan’s M&A practice, economic cycles and industry trends, ChatGPT’s technological development and application business opportunities, climate change and TCFD disclosure proposals and analysis, corporate governance and securities regulations, and the protection of intellectual property rights and trade secrets. In the future, the composition of the Board of Directors of the Company and the background of its members will continue to be strengthened under the current structure.
With regard to succession planning for the Board of Directors, there are currently a number of senior managers within the Group who possess excellent strategic thinking skills, as well as corporate management planning capabilities and professional experience in the businesses they operate. From time to time, the Board of Directors organizes sharing sessions on industry trends, financial investment and other related topics, in the hope of leveraging on the knowledge and experience of the directors to play a more critical role in professional assistance. The Company also plans to recruit professional talents from outside the Company for succession planning of directors. In terms of the independent directors, they are required by law to have working experience in business, law, finance, accounting, or the business of the Company, and the Company will appoint independent directors as required by law in order to fulfil its corporate governance function.

II. Succession Planning for Key Management Personnel
The Group’s employees at the vice president level and above are key management personnel. Through the transfer of experience from senior supervisors, the assignment and promotion of important projects and tasks, the training and rotation in different professional fields, the expansion of the management range and the participation in the formulation of the Company’s operating policies, we strengthen the strengths of the incumbent and cultivate leaders with strategic planning, decision-making ability, team leadership and humanistic care, and then assess the candidates for succession to facilitate the succession planning of the key management personnel. The Company also encourages executives above the level of vice president to participate in the EMBA study in various universities at home and abroad, and gives tuition subsidies, in the hope of effective development of leadership thinking, leading the team to achieve their goals. In 2023, one person was subsidized for the EMBA study above the level of vice president.
In December 2023, the Company hosted an executive operating strategy meeting for 67 key management personnel for a total of 469 hours. The meeting covered topics such as operating performance, business objectives, and strategy formulation. Through interaction and sharing at the meeting, senior executives were able to effectively develop high-performance work standards and mindsets that leaders should have, and reach a consensus. In addition to possessing outstanding professional competence and leadership qualities, the Company’s successor must also share the Company’s values and beliefs, with a view to leading the Company forward and generating substantial profits for shareholders.
In 2023, the Company held monthly management meetings, and 13 key executives regularly developed decision-making and thinking skills through the mechanism of work reports and participation in important meetings on objectives, management, etc. Senior executives assisted in the process of personal development guidance and provided feedback through regular performance evaluations.
In the future, the Company will utilize the existing performance evaluation system to assess and review suitable candidates for succession.
It is expected that potential successors will be promoted within 8-10 years and will take over in 10-15 years.