董事會多元化及獨立性

Board Diversity and Independency

Diversity of the Board of Directors:

The Company has formulated the policies for diversification of its Board of Directors’ members, and it discloses such policies on its website and MOPS. Directors are nominated through a rigorous selection process that not only diversified backgrounds, professional abilities and experience are considered, but also great importance was attached to the gender equality of the Board of Directors' members and the reputation of individual directors concerning ethical conduct and leadership.

At present, there is one female director among the members of the Company's Board of Directors, which is in line with the management goal for corporate governance that there shall be at least one female director in the Board of Directors, and the nine members of the Company's Board of Directors have diversified backgrounds, including different industrial and financial accounting and academic and other professional backgrounds and rich experience in operating company, and they generally have the knowledge, skills and quality required for performance of their duties to give play to the functions of business decision-making, leadership and supervision, and they continue to receive continued education to improve their professionalism every year legally.

Independence of the Board of Directors:

There are nine members of the Company's Board of Directors, including three independent directors, accounting for one-third of all directors, and there are no directors who are spouse or relatives within the second degree of kinship, so the Company's Board of Directors is independent.

Implementation status of the policies for the diversity of the Board of Director's members：

Board of Directors' Functional Goals and Executional Evaluation

Our company has established three functional committees: Audit Committee, Remuneration Committee, and Sustainability Committee, to assist the board of directors in fulfilling its duties. Both the Audit Committee and the Remuneration Committee are composed entirely of independent directors.

The Audit Committee meets at least quarterly to oversee the company's operations in accordance with the Company Law, Securities and Exchange Act, and other relevant regulations. The committee reports to the board of directors and has a 94% attendance rate in 2023.

The Remuneration Committee meets at least twice a year to evaluate the company's executive compensation policies and practices. The committee provides recommendations to the board of directors to ensure a reasonable compensation policy that promotes the company's long-term sustainability. The committee had a 100% attendance rate in 2023.

The Sustainability Committee was established on December 21, 2023, and is chaired by the Chairman or a designated director. The committee reports annually to the board on its operations, including stakeholder engagement, material issues, and implementation of sustainability initiatives. The board oversees the development and review of the company's sustainability strategy.

Board of Directors' Performance and Remuneration

To enhance corporate governance and board effectiveness, our company has implemented a board performance evaluation system that includes setting performance targets. The evaluation covers the entire board, individual directors, and functional committees. The evaluation methods are diverse, including self-assessment and other appropriate means. The evaluation results are reported to the board and are used as a reference for annual director remuneration.

The board, individual directors, and functional committees were evaluated in 2023, and the results were reported to the board on March 14, 2024. The evaluation scores ranged from 4.9 to 5.0, indicating a strong performance.