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 Audit Committee's internal performance evaluation is conducted annually, using five key areas as evaluation criteria: 1. Level of involvement in company operations; 2. Understanding of functional committee responsibilities; 3. Improving the quality of functional committee decision-making; 4. Composition and selection of functional committee members; and 5. Internal control, totaling 20 indicators. The evaluation results for 2024 were submitted to the Board of Directors on March 11, 2025, and met the requirements of corporate governance, effectively enhancing the functions of the Board of Directors.
3. The term of office for the current committee members is from May 31, 2023 to May 30, 2026. From May 31, 2023 to December 31, 2025, 14 meetings have been held. The attendance of committee members and the annual work priorities are summarized below：

Audit Committee's Annual Work Priorities and Resolutions for 2024:
1. Review of Financial Reports: The Board of Directors prepared the Company's 2024 Business Report, Financial Statements, and Profit Distribution Statement, etc. The financial statements were audited by Liben Taiwan United Certified Public Accountants, who issued an audit report. The Audit Committee considers the aforementioned Business Report, Financial Statements, and Profit Distribution Statement to be in compliance with regulations.
2. Audit Committee's Assessment of the Effectiveness of the Internal Control System for 2024: Based on the self-assessment results of the internal control systems of each unit (including overseas subsidiaries), the audit plan implementation results of the auditing unit for the entire year, and in accordance with the criteria for judging the effectiveness of the internal control system as stipulated in the "Guidelines for the Establishment of Internal Control Systems by Publicly Listed Companies," the Audit Committee conducted an overall assessment to reasonably ensure that the Company's internal control system (including supervision and management of subsidiaries) as of December 31, 2024, complies with relevant regulations and laws. The Audit Committee considers the design and implementation of the Company's internal control system to be effective.
3. Reviewed and approved the revisions to the "Articles of Association" and "Procedures for Handling Derivative Transactions," among other relevant regulations.
4. Reviewed and approved proposals related to cash capital increases, syndicated loans, endorsements, and fund lending without objection.
5. Reviewed the General Manager's academic qualifications and experience and appointed him.
6. Appointed accountants: To ensure the independence of the certified public accountants, the independence of the certified public accountants is regularly assessed in accordance with the company's "Corporate Governance Practices Code." The 4th Session, 7th Audit Committee meeting held on March 6, 2015, reviewed and approved the independence, professionalism, and competence of accountants Chang Yi-Chun and Cheng Chien-Hsien of Liben Taiwan Certified Public Accountants, deeming them qualified to serve as the company's certified public 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.
3. The Remuneration Committee conducts an internal performance evaluation annually, using five key areas as evaluation criteria:
  1. Level of involvement in company operations;
  2. Understanding of the responsibilities of functional committees;
  3. Improving the decision-making quality of functional committees;
  4. Composition and selection of members of functional committees; and
  5. Internal control, totaling 20 indicators. The evaluation results for 2024 were submitted to the Board of Directors on March 10, 2025, and met the requirements of corporate governance, effectively enhancing the functions of the Board of Directors.

Members of Remuneration Committee

The meeting date, proposal content and resolution results of the 2025 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.