Corporate Governance

Communication between Independent Directors, Internal Audit Supervisor, and Auditors

The company’s Internal Audit Supervisor regularly presents internal audit reports during Audit Committee meetings, ensuring full communication regarding the execution of audit tasks, follow-up on identified deficiencies, and the effectiveness of corrective actions. In addition to providing written audit reports to independent directors, the Internal Audit Supervisor also delivers special project reports based on the recommendations of the independent directors.
The company's external auditors present reports on the audit or review results of annual and quarterly financial statements, as well as other communication matters required by relevant laws during regular Audit Committee meetings.
The company holds annual separate meetings with independent directors, the Internal Audit Supervisor, and external auditors, where the Internal Audit Supervisor and external auditors each report individually to the independent directors on audit activities, annual plans, financial statements, and audit plans.
The company ensures direct communication channels between independent directors, the Internal Audit Supervisor, and external auditors. These channels include email, phone, or face-to-face meetings as necessary. In compliance with regulatory requirements, the company regularly conducts audits on financial and business conditions and communicates directly with management and governance bodies.

Communication with the Internal Audit Supervisor
The communication between the independent directors and the Internal Audit Supervisor is effective. The main communication topics are summarized as follows:
2023 Key Communication Summary:

Date	Communication Method	Communication Topics	Communication Details & Outcomes	Company's Response to Independent Director Comments
2024/1/23	Audit Committee	Internal Audit Report for December 2023	All Audit Committee members present agreed to the report.	No comments from the independent directors.
2024/3/26	Audit Committee	2023 Self-Assessment Report Internal Audit Report for January-February 2024	All Audit Committee members present agreed to the report.	No comments from the independent directors.
2024/6/20	Audit Committee	Internal Audit Report for March-May 2024	All Audit Committee members present agreed to the report.	No comments from the independent directors.
2024/8/28	Audit Report (Independent report to the independent directors)	Internal Audit Report for March-May 2024	All Audit Committee members present agreed to the report.	No comments from the independent directors.
2024/8/30	Audit Committee	Internal Audit Report for June-July 2024	All Audit Committee members present agreed to the report.	No comments from the independent directors.

Communication with External Auditors
The communication between the independent directors and the external auditors is effective. The main communication topics are summarized as follows:
2024 Key Communication Summary:

Date	Communication Method	Communication Topics	Communication Details & Outcomes	Company's Response to independent Director Comments
2024/2/22	Audit Committee	Key Audit Issues of 2022 Consolidated Financial Report	Independent Director Yan Wen-Bi: Confirmed the authenticity of sales revenue, the auditors have obtained evidence proving its authenticity. Raised concerns about the company’s high inventory reserve ratio. The auditors believe it aligns with the company’s diversified operations and industry characteristics and is reasonable. Discussions are ongoing with the regulatory authorities regarding obsolete inventory. Confirmed that the employee compensation plan has been professionally appraised and reviewed, and the auditors confirmed that the related procedures have been completed. Independent Director Hu Sheng-Yi: Asked if the company has evaluated the product life cycle. The auditor stated that the products have durability and the inventory is still saleable. Independent Director Xu Ming-Xian: Expressed concern about the company’s inventory reserve ratio being higher than industry peers. The company explained that this is due to the customized nature of its products and is preparing relevant information to report to the regulatory authorities.	Actions have been taken as per suggestions.
2024/3/26	Audit Committee	2023 Annual Business Report and Financial Statements, including Consolidated Statements Evaluation of Auditor’s Independence and Competence	The auditor’s report communicated key audit issues with the governance body, including audit scope, findings, and other communication matters (independence and client declaration). All members of the Audit Committee present discussed and approved the report.	No comments from the independent directors.
2024/6/20	Audit Committee	Revisions to 2022 and 2023 Consolidated Financial Reports	Independent Director Yan Wen-Bi: The company should avoid revising financial statements in the future, particularly after going public.	Actions have been taken as per suggestions.
2024/8/28	Auditor’s Audit Report (Independent Report to Independent Directors)	2024 Q2 Financial Report Audit Results	Independent Director Yan Wen-Bi: Suggested enhancing the disclosure of deferred tax assets in the financial statements.	Actions have been taken as per suggestions.
2024/8/30	Audit Committee	2024 Q2 Consolidated Financial Report	All Audit Committee members present discussed and approved the report.	No comments from the independent directors.