I. Risk Management Policy

Our company has established the “Sustainable Development and Risk Management Policy”, which has been approved by the board of directors, as the highest guiding principle for our risk management. According to the “Sustainable Development and Risk Management Policy”, our company has established the “Sustainable Development and Risk Management Committee” to monitor the company’s risks and strengthen risk management.

II. Risk Management Scope

The risk management scope includes “strategic risk”, “operational risk”, “financial risk”, “disaster risk”, etc., and evaluates the frequency and severity of the impact of risk events on the company’s operations through the risk matrix (Risk MAP), quantifies the risk level and ranks it, and proposes corresponding risk improvement plans for items with higher risk levels, and reports and tracks them in the “Sustainable Development and Risk Management Committee”.

III. Risk Management Organizational Structure

According to the current organizational structure, the various risk management units are integrated to establish the “Sustainable Development and Risk Management Committee”, which is chaired by the general manager, the deputy general manager serves as the deputy chairman, and the heads of the main business units of the parent and subsidiary companies serve as members. Regular meetings are held to identify and control risk factors, and to improve the execution efficiency of risk management organization, such as command and dispatch, self-assessment and execution. And report the previous year’s risk assessment and risk management operation to the board of directors regularly every year.

IV. Risk Management Operations Situation

The company's Sustainable Development and Risk Management Committee is directly under the board of directors, managed and supervised by the Chairman. The committee held meetings on March 29 and September 26, 2023. On August 10, 2023, it reported the overall operational status to the board of directors, outlining the following:

1. Updated internal and external risk radar charts, including geopolitical, inflation, interest rate, carbon tax, and other factors.

2. For the annual risk self-assessment, a total of 29 items were added in the medium to high-risk categories. Among them, 3 items were classified as high-risk related to geopolitical issues (Taiwan Strait crisis), while the rest were medium-risk items. Improvement plans have been proposed for all.

3. Initiated Business Continuity Planning (BCP) specifically for geopolitical issues (Taiwan Strait crisis), encompassing logistics, financial flows, personnel movements, and information flows. Each department has proposed corresponding strategies.

4. Completed the annual greenhouse gas inventory operation and submitted inventory and external verification plans in compliance with regulations. The committee reports on the execution status to the board of directors quarterly.

The company initiated the Greenhouse Gas Inventory Project in 2022. In the same year, an external certification body was invited to conduct verification training courses, with a total of 20 participants. The objective was to cultivate seed members for greenhouse gas inventory. In 2023, the company proceeded with external guidance and self-assessment for greenhouse gas inventory, with approximately 25 participants. The investment in these initiatives amounted to around NT$400,000.

V. Integrity Management

The General Manager’s Office of Vision Sunshine is responsible for promoting corporate integrity management, reported on the implementation status of Integrity Operation Advocacy to the Board on August 10, 2023., and each unit will implement internal control measures, and the audit unit and the board of directors will supervise the company’s operations, and through organizational design, to achieve the mechanism of division of labor and mutual supervision.

Implement the Code of Integrity Management, and the annual implementation status is as follows:

1. Education and training

   New employees are briefed and tested by the human resources unit when they report to work; the importance of integrity management is regularly promoted to the board members and all employees in conjunction with current events every year.

2. Case analysis

   Irregularly collect news of dishonesty-related events in society, and the legal unit analyzes and tracks the causes and judgments of the cases, and helps the company prevent and adjust related policies.

3. Whistleblowing system

   Our company has a whistleblowing case handling method, which clearly stipulates the handling and reporting methods of whistleblowing cases, and publishes the whistleblowing mailbox and contact phone number of the acceptance window on the company’s website. There are also whistleblowing protection measures to encourage relevant units to report dishonest behavior.

VI. The specific situation of implementing the regulations on the handling of material information and the prevention of insider trading

The company has established the "Major Information Processing and Prevention of Insider Trading Operational Procedures," which prohibit internal personnel from trading securities based on undisclosed information in the market. The company periodically reviews these operational procedures to comply with current laws and practical management needs. The operational procedures can be accessed on the company's website.

In 2023, the company arranged a 1.5-hour training course on "Prevention of Insider Trading and Case Illustrations" for all employees. A total of 102 individuals completed the training, and the course materials, including presentations and audio files, are available on the internal employee system for reference.

Additionally, at the beginning of each month, the company inquires about changes in shareholding to directors, managers, and shareholders holding more than ten percent of the shares. Simultaneously, written guidance on share transfer and reporting related matters under securities regulations is provided to directors, managers, and shareholders holding more than ten percent of the shares.

VII. Measures for Employee Personal Safety and Workplace Environment Protection

VIII. The corresponding measures taken in response to risks or opportunities within the community.

The company is headquartered in Taoyuan, and approximately 76.7% of our colleagues are based in and reside in Taoyuan (3 out of 4 employees are from Taoyuan). Large-scale events such as Family Day and the year-end banquet are also held at the headquarters located in Taoyuan. In 2023, around 800,000 NT dollars were allocated for these activities, with an average expenditure per person exceeding 7,000 NT dollars. This demonstrates our commitment to giving back to the community and fostering local economic development.

The solar power generation system at the Malaysia plant is continuously being developed, and in 2023, the total electricity generated reached 3 million kilowatt-hours. This resulted in a reduction of 1,917 metric tons of CO2 equivalent, contributing to lowering carbon emissions, improving energy efficiency, and minimizing the impact on the community.

In 2020, we acquired land and a factory in Malaysia to replace leasing arrangements. Subsequently, we have consistently expanded production and installed solar power generation systems. By committing to long-term local cultivation, we have created over 1,200 job opportunities while actively contributing to community development and environmental protection.