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a. Improve transparency and reveal material information in real time.
b. Establish mechanisms for benign interaction and power checks and balances between the BOD and the management.
c. Maintain the proportion of independent directors.
d. Form an audit committee to review major proposals and maintain the independence and fairness of certified accountants.
e. Form a remuneration committee to review and improve the remuneration system for directors and managers.
f. Make a specific and clear dividend policy.
g. In Shareholders’ meeting, vote on a case-by-case basis and promote the e-Voting to fully implement the exercise of shareholder rights.
h. Make corporate governance rules, uphold the principle of integrity and implement internal audit mechanisms.

In 2023 Shareholders' meeting, the company has re-elected directors and formed a new BOD, a new audit committee, a new remuneration committee and a new nomination committee. All new directors and committees will perform their duties to implement corporate governance.
The BOD meeting of 2020 November passed to appoint Mr. Dai, Zhihao, a deputy manager of the accounting dept. to concurrently sever as the chief corporate governance officer (CCGO). The responsibilities of the CCGO include providing information requested by directors, handling related matters of the BOD and Shareholders' meeting, handling company registration and changes, preparing minutes of the BOD and Shareholders' meeting, to facilities the smooth operation of corporate governance.
The audit office is directly under the BOD. The appointment and removal of the audit supervisor is approved by the BOD. The purpose of internal audit is to check and evaluate the reliability, efficiency and effectiveness of the company's operating records and internal control, and provide suggestions for improvement to the BOD and audit committee on a regular basis, in order to improve the internal control system and increase operating efficiency.

To establish a comprehensive risk management system and foster a corporate-wide risk management culture, the Company is committed to strengthening its risk management capabilities. This commitment aims to ensure sound operational development, safeguard stakeholder interests, and achieve long-term sustainability goals.
On August 13, 2025, the Board of Directors approved the "Risk Management Policy and Procedures." This framework defines specific risk management objectives, delineates the scope of management, and establishes a clear organizational structure. Through these standardized procedures, the Company identifies risk issues, assesses their impact levels, and determines appropriate response models. Furthermore, a monitoring and review mechanism has been established to ensure the effective operation of risk control measures and to maintain transparency through external disclosures.

In accordance with the Company’s "Risk Management Policy and Procedures," the governance roles are defined as follows:
The Board of Directors: Serves as the highest governing body for risk management.
The Audit and Risk Management Committee: Acts as the practical supervisory unit overseeing the operational mechanisms.
The Corporate Governance Task Force (under the Sustainability Committee): Serves as the primary unit for executing risk control. The President acts as the convener, leading task force members through the risk management process.
Central Administrative Units, Subsidiaries, and Operational Units: Serve as the functional execution units. They are responsible for implementing, promoting, and operating daily risk management mechanisms. These units report challenges and emerging issues to the Corporate Governance Task Force to facilitate the review and improvement of risk controls.
The Internal Audit Office: Operates as an independent review unit reporting directly to the Board of Directors. It formulates annual audit plans based on risk management policies and internal control systems, and regularly reports the results of risk management audits to the Board.

The aforementioned material risk issues were reported to the Board of Directors on November 12, 2025. All relevant units have formulated specific mitigation plans and response strategies. The Corporate Governance Task Force will track these items as part of its regular monitoring process and will periodically review the effectiveness and suitability of the response measures.
The progress and outcomes of our risk management procedures will be disclosed through the Annual Report and the corporate website. This transparency ensures that stakeholders can understand the company’s commitment to risk management and its dedication to the principles of sustainable development.

On May 13, 2025, the Board of Directors approved an amendment to the Corporate Governance Best Practice Principles. This amendment mandates a closed period (blackout period) during which insiders—including directors—are prohibited from trading the company’s shares. This period covers 30 days prior to the announcement of annual financial reports and 15 days prior to the announcement of quarterly financial reports. Additionally, the company sent formal reminders to all insiders regarding these trading restrictions on July 25, 2025, and October 20, 2025, ahead of the respective board meetings.
According to the company's procedure of preventing insider trading, we shall educate directors and managers about the procedures and related laws and regulations at least once a year. Current directors and managers have be provided with relevant regulations and promotional materials for insider trading and explained relevant content、regulation details、cases analysis after BOD meeting on March 13, May 14, August 14, and November 13, 2023, meeting time was three hours.