Corporate Conduct and Ethics Implementation

The Company has established “Procedures and Guidelines of Business Ethics” and “Principles of Business Ethics”, which approved by the Board of Directors and submitted to the shareholders' meeting. The Human Resources & Administrative Division is responsible for formulating and monitoring the execution of preventive schemes for unethical conducts, which include prohibiting infringement of intellectual property rights, prohibiting acts of unfair competition, and requiring the personnel of the Company and of the subsidiaries to comply with the provisions of the Securities and Exchange Act and may not take advantage of undisclosed information of which they have learned to engage in insider trading. The personnel are also prohibited from divulging undisclosed information to any other party so as to prevent other party from using such information to engage in insider trading. For operating activities with a high risk of unethical conduct, the Company has established effective accounting and internal control systems and the Internal Auditing Office would carry out audits and submit audit reports to the Board. The Company also holds training sessions on business ethics for Directors, managers and employees, with a total of 2,354 person-times and 1,510.81 hours, and links business ethics to employee performance evaluations and human resources policy, establishing clear and effective systems for rewards and penalties. All personnel of the Company and of the subsidiaries have signed the “Rules for Confidential Information Protection” with a signing rate of 100%. The above implementation situation has been reported to the board of directors on January 25, 2024.

Implementation of Corporate Ethical Management
Implementation of Prohibiting Directors, Employees and Other Insiders from Trading on Undisclosed Information

New Directors are given education and training on the "Q&A for Equity Transactions by Insiders in Listed Companies" compiled by the Taiwan Stock Exchange and relevant laws once they take office. For new managerial officers, training courses on relevant laws and regulations are arranged within one week after they take office. They are required to sign statements declaring their full understanding to avoid violations of relevant laws and regulations. As for new recruits, Taiflex raises their awareness on the “Procedures for Internal Material Information and Prevention of Insider Trading” as well as relevant laws and regulations through orientation programs.

In addition to the training set out in the preceding paragraph, the Company holds annual promotion sessions on the “Procedures for Internal Material Information and Prevention of Insider Trading” for Directors and insiders, and stresses that Directors are prohibited from trading the Company’s stocks during the closed period of 30 days prior to the publication of annual financial reports and 15 days prior to the publication of quarterly financial reports as stated in the “Code of Practice for Corporate Governance.” New laws, regulations and relevant knowledge are disseminated as well. Important internal meetings and documents are labeled with their corresponding levels of confidentiality, emphasizing the fact that they are confidential documents and the content shall not be leaked.

The Company holds insider trading courses on the internal education and training platform from time to time. It is compulsory for all employees to participate in the courses, which cover the acts, scope, causes and risks associated with insider trading. New recruits are trained with the course of "Confidentiality and Security Policy Orientation". Course materials and videos are filed internally for employees to access at any time.

In 2023, a total of 120 Directors, insiders and employee had spent 193.70 hours on the courses.

During the Board meeting on October 25, 2023, the Company informed all Directors of the dates for the five regular Board meetings as well as the closed periods related to the publication of quarterly financial reports in 2024 to prevent any violations of laws.