Audit Committee is composed of all independent directors and holds meetings once every season. Its main responsibilities are:

1.Establish or revise internal control system in accordance with Article 14-1 of Securities and Exchange Act.
2.Evaluate the effectiveness of internal control system.
3.Establish or revise the handling procedures for material financial business actions, such as acquisition or disposal of assets, derivative trading, loans of funds to others, endorsement/guarantees for others in accordance with Article 36-1 of Securities and Exchange Act.
4.Matters involving conflict of interest of directors.
5.Major assets or derivative trading.
6.Making loans/endorsement of major funds or provide guarantees.
7.Raise, issuance or private placement of securities with equity.
8.Appointment (dismissal) or remuneration of certified accountants.
9.Appointment/dismissal of financial, accounting and internal audit manager.
10.Q1, Q2 and Q3 Financial Statement and Annual Financial Report.
11.Other major matters of the Company and those regulated by competent authorities.

Members of Audit Committee

1. The Company established audit committee on Aug. 25, 2014. Total 3 committee members.
2. The term of the audit committee：May 31, 2023 to May 30, 2026. From May 31, 2023 to November 13, 2023, the Audit Committee has held two meetings.

The audit committee’s annual work priorities and 2023 resolution matters:
1. Review financial reports: The board of directors prepares the company's 2022 business report, financial statements and earnings distribution statement, etc. The financial statements have been audited and completed by Liben Taiwan United Accounting Firm, and an audit report has been issued. The above-mentioned operating report, financial statements and earnings distribution statement have been reviewed by the Audit Committee and are found to be consistent.
2. The Audit Committee deliberates on the assessment of the effectiveness of the internal control system in 2022, based on the self-assessment results of the internal control system of each unit of the company (including overseas subsidiaries), the implementation results of the annual audit plan of the audit unit, and in accordance with the "Publicly-Issued Company's Establishment of Internal Conduct an overall assessment of the judgment items on the effectiveness of the internal control system stipulated in the "Control System Processing Standards" to reasonably ensure that the company's internal control system (including the supervision and management of subsidiaries) as of December 31, 2022 complies with relevant standards. In accordance with relevant laws and regulations, the Audit Committee reviews the design and implementation of the company's internal control system to ensure it is effective.
3. Review and agree on the revision of relevant laws and regulations such as "Measures for the Management of Financial Statement Preparation Process", "Measures for Self-evaluation or Peer Evaluation of the Board of Directors", "Operation Standards Related to Mutual Financial Business between Affiliated Enterprises".
4. Review proposals related to cash capital increase, joint loans, endorsement guarantees, capital loans, etc., and all proposals were approved without objection.
5. Appointment of accountants: In order to ensure the independence of the certified accountants, the independence of the certified accountants is regularly evaluated in accordance with the provisions of the company's "Code of Corporate Governance Practice". The 12th Audit Committee of the 3rd session on March 9, 2023 reviewed and approved the independence, professionalism and competency of Accountants Wang, Mu-Fan and Tao, Hong-Wen of BDO Taiwan ,a joint Accounting Firm, and they are qualified to serve as the company's certified accountants.

The Company established remuneration committee on Dec. 23, 2011. Its major responsibilities are:

1.Establish and regularly review the performance evaluation of directors and managers and the policy, system, standard and structure of remuneration.
2.Regularly evaluate performance goal achievement on directors and managers and suggest the content and amount of their individual remuneration.

Members of Remuneration Committee

The meeting date, proposal content and resolution results of the 2022 Remuneration Committee are as follows

The board of the Company shall regulate the Company’s audit system and procedures and review the Company’s internal audit system and audit reports in accordance with “Regulations Governing Establishment of Internal Control Systems by Public Companies”.

Longchen P&P’s Internal Audit is a unit that reports directly to the Board of Directors, which comprised of a chief audit officer and audit personnel matched the qualification criteria of FSC. The names, ages, educational background, experience, seniority, and training of the internal auditors shall be reported to the FSC based on its regulated format for recording by the end of January each year.

1.The appointment and dismissal of the chief audit officer is approved by the Audit Committee and submitted to the Board of Directors for approval.
2.The appointment, dismissal, evaluation, and salary/remuneration of auditors are handled in accordance with the “Principles for the Recruitment, Appointment, Determination of Salary of Newcomers, “Regulations Governing Employees’ Salary”, “Regulations Governing Performance Evaluation” and “Principles for Employees’ Resignation Procedures” and the evaluation performance will be conducted twice a year. The aforementioned appointments, dismissals, evaluations and salary/remuneration will be submitted to the Chairman of the Board of Directors for approval in accordance with the Approval Procedures. The aforementioned regulations have been disclosed in the Company’s Internal Regulations Zone.

The aims of our internal audit program are to conduct audits effectively, to evaluate problems in the internal control system and assess the efficiency of operations to ensure that such a system can be carried out effectively on a continuous basis, and to assist the board of directors and management to perform their duties effectively so as to ensure a sound corporate governance system. Therefore, our internal audit program shall take into consideration the overall operational activities of the firm and its subsidiaries in establishing an effective internal control system that will be constantly reviewed and updated so as to keep up with the changing environment inside and outside the company and to ensure that the design and enforcement of the system remain effective.

The audit report shall be delivered to audit committee members by the end of next month upon the completion of audit items after reviewed by audit manager and reported to assigned board members and obtained instructions.

The Company has passed that Assistant vice president, Wu, Kuo-Shan, will serve as the chief corporate governance officer by resolution during the board meeting on May 14, 2021. Assistant vice president, Wu, Kuo-Shan, had conducted tasks as chief accounting officer for over 20 years at public companies. As a chief corporate governance officer, his major responsibilities will be:

1.Handle relevant matters and prepare the minutes for board meeting and shareholders’ meeting.
2.Assist the office taking and continued advanced studies of directors.
3.Provide the information required for directors to execute business.
4.Assist the directors in law compliance.
5.Other matters established in accordance with Articles of Incorporation or contracts.

The Company provides educational and promotional programs on the relevant laws and regulations related to prevention of insider trading to current directors, managers, and employees at least once a month; for new directors and managers, educational and promotional programs are arranged within two days of taking office, and for new employees, educational and promotional programs are provided by human resources during pre-employment training.
On the 25th of each month during the year, the current directors and managers were given relevant advocacy on the confidentiality of material information, as well as the reasons for insider trading, the identification process, and transaction examples. On September 24, 2020, the Company held a morning meeting to reiterate its commitment to confidentiality. The Company has also posted the relevant information on its website and internal employee system for reference by relevant personnel.

In accordance with the “Procedures for Ethical Management and Guidelines” of the Company, the Human Resources Department is the dedicated unit to promote ethical corporate management and report to the Board of Directors once a year, and is responsible for assisting the Board of Directors and management in formulating and supervising the implementation of ethical corporate management policies and preventive programs to ensure the implementation of the Ethical Corporate Management Best Practice Principles. As of the end of September 2021, the Company's implementation of its ethical corporate management policy is reported as follows:
1.Total of 18 items for relevant regulations of ethical corporate management are explained in the morning meeting on the third week of each month.
2.According to the Company’s Regulations of 119 Feedback Mailbox, our Taiwan plant received 9 cases of Feedback Mailbox, which have been investigated by the chief audit officer and the results and countermeasures have been announced.

The intellectual property rights management standard system includes patents, trademarks, copyrights, business secrets and other items. The company encourages employees to conduct research and innovation, implement corporate governance, and protect technology research and development results to ensure the company's sustainable operations. It formulates intellectual property management policies and formulates relevant measures. Operational execution is used to reduce operational risks, strengthen competitive advantages, and enhance corporate competitiveness.