Corporate Governance

►Material Information Processing and Handling of Insider Trading and Its Execution
To establish the favorable material information handling and disclosing system of Greenyn, avoid inappropriate leakage of information, ensure the consistency and accuracy of information released to external parties, and prevent the occurrence of insider trading, the Board approved the "Procedures for Handling Material Inside Information" and "Regulations for Insider Trading Control," and the Company has announced them on its EIP and informed all managers and employees.

⇒ Implementation of Procedures for Handling Material Inside Information and Its Execution

1. The Company organized educational communication related to the "Procedures for Handling Material Inside Information," "Regulations for Insider Trading Control," and relevant laws and regulations for its current Directors, managers, and employees at least once a year, arranges the educational communication for new Directors and managers within three months from the assumption of their positions, and provides the educational communication for new employees by the HR during job orientation and training.
2. The Company reminds Directors of the stock trading control period 30 days before the announcement of the annual financial report and 15 days before the announcement of quarterly financial report during the course of insider trading prohibition each year.
3. The Company notify Directors of the expected meeting dates of the Board and the stock trading control period before the quarterly financial reports in the following year by the end of each year to prevent them from accidentally violating the specifications.

►Risk Management Policy and Procedures
The Company established its "risk management policy" in 2022 and it was approved by the Board on 10 August 2022 as the governing guidelines for the risk management of the Company. According to the latest internal audit development and requirements of the standards, the Company monitors potential risks and implements preventive measures to reinforce its risk management. For different risks, the Company formulates its risk management policy, covering management targets, organizational structure, responsibility and authority attribution, and risk management procedures, and makes due execution to control risks arising from business activities within an acceptable scope.

Scope of Risk Management
The Company commits to integrating and managing potential risks of strategies, operations, finance, and hazards that may affect its operations and profits through active and cost effective methods to provide appropriate risk management for all stakeholders, evaluating the frequency of risk event occurrence and the severity of impacts on the Company's operations, and adopting corresponding risk management strategies. Risk management of the Company includes the management of "operational risk," "investment risk," "credit risk," "social risk," and "legal risk."

Organizational Structure
The Company formulated its "Risk Management Team" by integrating different risk management departments in 2022 and appointed the chief of corporate governance as the general convenor of the Risk Management Team. Risk factor identification and risk control are periodically performed for all business departments to facilitate the efficiency of the risk management organization's command and control, self-evaluations, and execution. Also, the team periodically reports to the Board each year regarding the risk evaluations and risk management operations of the preceding year.

Operation
The Company actively promotes the implementation of risk management systems; proposals related to significant business policies and investments are evaluated and analyzed by corresponding departments, and the effectiveness of risk control is periodically reviewed and evaluated for internal and external risk events; the Risk Management Team reports to the Board regarding its operation each year.

Primary operation in 2023 is as follows: On 20 December 2023, a report was made to the Board  regarding the business execution of the Company's Risk Management Team, including the evaluations of risks, scope, and risk environments, risk control measures adopted, and risk management operations.

Primary operation in 2022 is as follows: On 30 September 2022, a report was made to the Board  regarding the business execution of the Company's Risk Management Team, including the evaluations of risks, scope, and risk environments, risk control measures adopted, and risk management operations.

The chief of corporate management completed the two-hour accident drills for 15 officers on 30 May 2022; after completed the continued education of "Methods for Directors and Supervisors to Supervise Corporate Risk Management and Crisis Management" organized by the Securities and Futures Foundation on 7 June 2022, it completed the transfer of training for members of the Company's Risk Management Team on 2 August 2022 and informed the Company of significant risks and measures related to prevention and response to improve the Company's awareness and recognition regarding the operational risk culture.

►Intellectual Property Management Plan
For the intellectual property management plan, to reinforce the leading position within the industry and maintain the advanced technical achievements gained through efforts, the Company has established an operating model that creates values for the Company by utilizing intellectual properties, which not only protects the Company's operating freedom but also enhances our competitive advantages and helps the Company in gaining profits.

1. Patent Protection Measures
   Intellectual property strategies of the Company primarily include patent layout strategy and patent application expansion; the Company protects its R&D achievements and leading technical position through implementing the internal discussion review system, consulting external firms for resource recommendations, and promoting talent cultivation in terms of execution. To build a solid intellectual property right system, the Company has developed a systematic patent and intellectual property right management system to effectively control and protect patents via digital technologies, control costs, and evaluate whether to continue the protection based on the dynamic market analysis each year.
2. Trademark Protection Measures
   Through over two decades of efforts, the trademark layout of the Group has become comprehensive; its trademarks involve different categories of products and extend to major countries/regions globally. The Company regularly examines the usage of registered trademarks and evaluation and necessity of continuous maintenance, pay close attention, and apply for new trademark registrations for the layout in accordance with the future plan and development of the Company.
3. Business Secret Protection
   Business secrets are closely related to the leading technologies, outstanding manufacturing, customers' trusts, and other competitive advantages of the Company. To comprehensively and effectively manage the business secret innovation, the Company expects to complete the establishment of the "confidentiality management system" to record, compile, and utilize business secrets of competitive advantages. If the Company is unable to acquire or maintain the authorization of particular technologies or intellectual properties or is unable to prevent the infringement to the Company's intellectual property rights with relevant infringement litigations occurred thereof, it may result in the inability of the Company in producing particular products, selling particular services, or using particular technologies and diminish the competitive strength of the Company against competitors who gain profits due to the infringement to the Company's intellectual property rights, and in turn, reduce the Company's opportunities for generating revenue. Therefore, the Company has adopted relevant measures to minimize, so far as possible, the potential losses of shareholders' interests resulting from claims and litigations related to intellectual property rights. Such measures include:
   (1)Obtain defensive and/or offensive intellectual property right protection for the Company's technologies and businesses in a timely manner.
   (2)The employment contract of employees provides that employees have the obligation to protect the confidentiality of businesses they handled and corporate operations, and they should not leak or use any business secret of former employers.
   (3)After job assumption or separation, employees should not leak any business secrets, or the Company should be entitled to making disposals, pursuing legal procedures, and loss compensation.

   
Execution:
　The Company has reported to the Board regarding matters related to intellectual properties on 30 September 2022.
　Since 2021, the Company has been actively promoting its intelligent property management plan; the primary execution in recent years is as follows:
　•Completed the systematic intellectual property right management system for trademarks and patents successively in 2021.
　•Implemented relevant management procedures for intellectual property rights to complete systems related to intellectual property rights in 2022.
　•The "confidentiality management system" and "copyright management system" will be completed in 2022.
　•The Company arranges intellectual property educational training for departments related to intellectual property rights to improve the awareness and recognition of intellectual property protection of the Company.
　
　The list of intellectual properties and achievements acquired at present are as follows:

1.  Patent: As of 31 August 2022, the total number of patent applications of the Company worldwide was 97, the total number of patent acquired worldwide was 69, and the Company obtained four patens in Taiwan and one overseas patent in 2022.
2. Trademark: As of 31 August 2022, the total number of trademarks registration worldwide was 214, and the total number of trademarks registered in Taiwan was 99.
3. The Company has its "Regulations for Intellectual Property Right Management" in place. Except for requiring external customers, suppliers, and other relevant persons to sign the "non-disclosure agreement," the Company requires internal employees to sign the "non-disclosure agreement of employees" and inform and remind employees of relevant requirements of the non-disclosure agreement upon their resignation. After implementing the "Regulations for Intellectual Property Right Management" in 2022, the document classification and access are re-examined and re-defined to duly protect the Company's gems of wisdom.