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Taiflex approved the amended "Guidelines for Performance Evaluation of the Board of Directors" in the Board meeting on October 27, 2021 for corporate governance purpose. An internal performance assessment on the Board would be carried out at least once every year to enhance the Board functions as well as its operation efficiency by clearly defining the performance targets.

Formulation and execution of the performance evaluations cover evaluations on the Board as a whole, individual Board members and functional committees. At the end of each year, the designated unit responsible for Board meetings would gather information pertaining to Board activities, distribute the "Self-assessment Questionnaire for Board Members" and the "Self-assessment Questionnaire for Performance of Functional Committee" to Directors and Committee members, and assign scores to assessment items based on the actual operation of the Board. The outcomes would then be summarized and reported to the Board.

Details of the 2025 Board performance evaluation are as follows:

Evaluation Type Evaluation Method Grading Standard Outcome
Performance evaluation of the Board as a whole Evaluation by the designated unit based on the actual operation of the Board The evaluation covered the following five aspects:
  • Level of participation in corporate operation
  • Enhancement on the quality of Board decisions
  • Composition and structure of the Board
  • Election and continuing education of Directors
  • Internal control
 The overall result achieved high distinction, scoring 91.21. The outcome demonstrated that the operation of the Board as a whole was sound and in compliance with the spirit of corporate governance.
Performance evaluation of individual Board members Self-evaluation by Board members The evaluation covered the following six aspects:
  • Command over corporate goals and missions
  • Understanding of Directors’ duties
  • Level of participation in corporate operation
  • Internal relationship management and communication
  • Professional competence and continuing education of Directors
  • Internal control
 The overall result achieved high distinction, scoring 97.8 on average. The outcome demonstrated that Directors gave positive reviews on the efficiency and effectiveness of operation under each indicator.
Performance evaluation of functional committees Self-evaluation by functional committee members The evaluation covered the following five aspects:
  • Level of participation in corporate operation
  • Understanding of functional committees’ duties
  • Enhancement on the quality of functional committees’ decisions
  • Composition of the functional committees and election of members
  • Internal control
 The overall results achieved high distinction, scoring 97.88, 95.92 and 96.83 on average for the Compensation Committee, the Audit Committee and the Sustainable Development Committee, respectively. The outcome demonstrated that functional committee members gave positive reviews on the efficiency and effectiveness of operation under each indicator.

Details and recommendations of the aforementioned evaluation were reported in the Board meeting in January 2026.

External Board performance evaluation

In December 2025, Taiflex engaged Taiwan Corporate Governance Association (TCGA) to conduct the 2025 Board efficiency (including performance) evaluation for the period of November 1, 2024 to October 31, 2025. The evaluation covered five aspects including the composition, guidance, authorization, supervision, communication, internal control and risk management, self-discipline and others of the Board. The Chairperson, three Independent Directors, President, Corporate Governance Officer and Audit Officer were to answer twelve open-ended questions in the form of a questionnaire and be interviewed by video conference. TCGA had issued the performance evaluation report on December 26, 2025. The organization has no business relationship with Taiflex; thus, its independence is assured. Recommendations from TCGA would serve as reference for continuous enhancement of Board functions and were reported along with action plans in the Board meeting on January 29, 2026. General comments and action plans are as follows:

General comments in the evaluation report
  • The Chairman of the Board demonstrates an open and inclusive leadership style, emphasizing information transparency and open discussion. For all major matters, in-depth and professional analysis reports are prepared in advance. The opinions of all Board members are fully respected, enabling Board proposals to be discussed thoroughly and efficiently.
  • Members of the Board possess diverse expertise and experience, including corporate management, international markets, financial management, copper processing technologies, and polymer chemical industries. This well-balanced and multidisciplinary composition aligns with the Company's operational and strategic development needs. Independent Directors have a clear understanding of the Company's medium- to long-term positioning and objectives, share a strong consensus with the management team, and effectively fulfill their advisory and supervisory roles.
  • At the Board meeting held on June 29, 2021, the Company presented a five-year operational plan, covering business strategies, product development and R&D objectives, as well as financial projections. This systematic and forward-looking planning approach enhances operational growth and risk management capabilities. The plan is reviewed and adjusted annually in response to changes in the external environment and serves as the foundation for formulating the following year's strategic plan, thereby reinforcing the Board's strategic guidance function.
  • The Company regards environmental sustainability as a core value of its group-wide operating strategy and is committed to conducting its operations in an environmentally responsible manner. Under the Sustainability Committee, a Sustainability Development Center has been established to monitor and analyze global sustainability issues. From environmental, social, and governance (ESG) perspectives, the Center collaborates with various functional teams to promote the Company's sustainable development initiatives. Each functional team formulates annual action plans and monitors implementation progress. Results are consolidated by the Sustainability Development Center and reported to the Sustainability Committee.
Recommendations from the evaluation report and action plans
Item Recommendation Action Plan
1 To maintain the diversity and independence of the functions of the Independent Directors and the Audit Committee, it is recommended that the Company, in line with its medium- to long-term development needs, continue to consider factors such as professional diversity and gender among Independent Directors. The Company is advised to establish specific objectives for its Board diversity policy (e.g., the introduction of female directors) to serve as a reference for future nominations of Board members. The Company nominates Independent Directors based on its medium- to long-term development needs, seeking candidates with relevant professional expertise and independence. The Company will introduce female directors in the next term of the Board to further enhance Board diversity.
2 It is recommended that the Company incorporate factors such as long-term corporate development strategies, sustainability objectives, and the promotion and implementation of ESG initiatives into the performance evaluation criteria for senior management. This would enable the Board to effectively incentivize the management team to focus on the Company's long-term interests and the achievement of its corporate sustainability goals. The Company will continue to discuss sustainability-related objectives at the Board level and will appropriately incorporate sustainability considerations as one of the evaluation criteria when assessing the performance and remuneration of senior management.
3 To further strengthen the Board's division of responsibilities and governance functions, it is recommended that the Company, upon each Board re-election, set term-specific objectives for the Board and its functional committees (such as improving corporate governance evaluation ratings), and develop corresponding performance evaluation indicators for the Board and each functional committee. This would enable effective assessment of Board performance and ensure the reasonable achievement of the objectives of the Board and its functional committees. The Company plans to incorporate the primary objectives of each functional committee as one of the scoring items in the performance evaluation indicators for each functional committee.
4 It is recommended that the Company consider taking into account the input of the Audit Committee when setting the Chief Audit Executive's (CAE) work objectives and annual performance evaluation, given the close interaction between the CAE and the Audit Committee. This would help enhance the independence of internal audit and strengthen the Audit Committee's oversight effectiveness. It is also recommended to strengthen the mechanism for internal audit personnel and external auditors to communicate separately with the Audit Committee, with discussions formally documented in the meeting minutes. This would help the Audit Committee effectively exercise its independent oversight over internal audit and ensure smooth communication channels with external auditors. The Company will take into account the recommendations of evaluation agencies and incorporate the Audit Committee's input when assessing the performance of the Chief Audit Executive.