Board and Executive Succession Planning

Succession Planning for Board Members

• The nomination and election of the Company’s directors are conducted in accordance with the candidate nomination system stipulated in the Articles of Incorporation, and are clearly set forth in the Corporate Governance Best Practice Principles and the Rules for Election of Directors. The composition of the Board of Directors shall take diversity into consideration, and a diversity policy shall be formulated based on the Company’s operations, business model, and development needs. The diversity objectives of the Board are as follows:

• The structure of the Board of Directors shall be determined based on the Company’s business scale, the shareholding of major shareholders, and practical operational needs.
• The Company arranges a minimum of six hours of training courses per year for each director. These courses cover topics such as corporate governance-related finance, risk management, operations, business, legal affairs, accounting, corporate social responsibility, internal control systems, and financial reporting responsibilities. The aim is to help directors gain an in-depth understanding of the Company’s operations and keep pace with industry developments, thereby enhancing their professional competencies.
• The Company selects candidates for directors based on the following criteria:

• The Company has established the “Board Performance Evaluation Policy.” Each year, performance is assessed based on various indicators including alignment with company goals and missions, awareness of duties, participation in operations, internal relationship management and communication, professionalism and continuing education, internal controls, and expression of concrete opinions. These evaluations are used to ensure effective Board operations and serve as a reference for future director nominations.

Succession Planning for Key Management

The Company’s senior management team (including managerial officers) is required to possess outstanding professional capabilities, a strong alignment with the Company’s business philosophy and core values, and demonstrate personal conduct in accordance with the principles of “Value Focus, Execution Excellence, Passionate Accountability, and Breakthrough Innovation.”Additionally, the Company works with external experts to define the essential leadership competencies for senior executives, which include:Visionary Leadership,Strategic Thinking,Effective Delegation,Adaptability,Business Acumen.Based on these core competencies, the Company offers targeted training programs and seminars to support leadership development and succession planning.