1

Our Audit department is an independent unit, reporting to the Board of Directors, and is composed of one Chief Audit Officer and two auditors who are qualified to the requirements of the Financial Supervisory Commission (FSC) and complete Internal Audit professional course every year. The list of Internal Audit personnel is reported in the Market Observation Post System by end of January each year.
 

The assignment & discharge of Chief Audit officer is conducted pursuant to the Audit Committee Charter and Meeting Rules of Board of Directors, and agreed upon by the Audit Committee prior to the approval of the Board.
The assignment & discharge, evaluation, remuneration of the audit personnel shall conform with the relavent regulations, and in compliance with the Corporate Governance Principles prior to the Chairman's approval regularly.
 

2

We establish internal control system and internal audit implementation rules based on the Regulations Governing Establishment of Internal Control System by Public Companies stipulated by Securities and Futures Bureau.

We develop annual audit plan based on the risk assessment which includes law & regulation compliance, acquisition & disposal of assets, derivatives trading, capital lending, loaning of funds, endorsements / guarantees, business transaction management of stakeholders, supervision over subsidiaries, information & telecommunication security, sales and payment due collection cycle, and procurement and payment cycle.

With Audit and Remuneration Committees established, our annual audit plan includes the operational management of  Audit and Remuneration Committees.

Our Audit department examines the company’s internal audit system based on the annual audit plan. The audit report will be attached with working paper and supporting document. The audit findings will be followed up periodically and a tracking report will be prepared. After approval, the audit report and tracking report will be presented to the Independent Directors for review within the time stipulated.

 

3

Our Audit department reviews the self-audit report performed by each individual units and subsidiaries every year; along with the findings of defects and irregularities and its improvements during the audit which are the primary base for the Board of Directors and the President’s evaluation of effectiveness of internal control system and the declaration thereof.

4

We report the following items online within the timeline based on the stipulation of Securities and Futures Bureau:

• Annual audit plan of following year by end of December.
• List of internal audit personnel by end of January.
• Status report of the previous year’s audit plan by end of February.
• Disclosure of the previous year’s statement of internal control system by end of March.
• Report of the previous year’s improvement of defects and irregularities by end of May.

5

Our risk management operation in 2025 is as follows:

• Monthly staff meeting is held to review the potential risk and opportunity in terms of environment, sefety, production amd sales.
• Quarterly safety and health meeting is held to promulgate the implementation of corporate risk policy to employees.
• Check monthly if the insured assets are sufficient and complete the factory property insurance before June 30 each year.
• Conduct a comprehensive financial/business review of all credit customers in July each year in accordance with the "Sales Management Regulations".
• The latest date of Board of Directors meeting for reporting was 11th November 2025.