Risk Management Committee

Committee Responsibilities

1. Responsible for overseeing the company’s overall risk management, formulating risk management policies, frameworks, organizations, and mechanisms, and establishing qualitative and quantitative management standards.

2. Implementing the Board of Directors’ risk management decisions and regularly reviewing the development, establishment, and effectiveness of the company’s overall risk management mechanisms.

3. Coordinating and promoting cross-organizational risk control programs.

4. Supervising and managing the overall risk control improvement mechanisms of the company and its subsidiaries.

5. Reviewing and integrating various risk control reports, regularly reporting to the Board of Directors each year, and promptly reflecting the status of risk management implementation to the Board, along with necessary improvement suggestions.

Committee Organizational Structure

1. The Board of Directors is responsible for approving this policy and supervising all existing or potential risks within the company, as well as allocating reasonable resources to ensure effective risk control.

2. The Risk Management Committee and Risk Management Task Force are the highest guiding bodies for the company’s risk management. They are responsible for formulating risk management policies, planning major risk management matters, defining the significance and prioritization of company risks, supervising improvements in risk monitoring, and reporting at least annually to the Board of Directors on the operation and effectiveness of risk management.

3. Each business unit (including headquarters and factories): Headquarters includes HR, finance, procurement, IT, sales, and quality assurance. Factories include Hukou Plant, Beixing Plant, Zhongxing Plant, and AIT Plant. Each unit should implement risk management, reporting, and improvement processes, promote and execute risk management within the department, and report the status of risk plan improvements to the company’s Board of Directors.

Committee Implementation Status

• The company established the Risk Management Committee in October 2024. The committee consists of three members appointed by the Board of Directors. The Risk Management Committee meets at least once a year and may convene additional meetings as needed. In 2025, the committee meeting was held on October 29. All proposals were unanimously approved by the attending members, and the risk management status was reported to the Board of Directors on October 29, 2025.