Corporate governance unit

The Company’s board approved by resolution the appointment of the Finance Department Manager as the corporate governance officer, to protect shareholders’ equity and strengthen the board functions. The Financial Division Manager is a manager of the Company and has at least three years of experience as a financial officer in a publicly listed company. The corporate governance officer is mainly responsible for handling matters related to board meetings and shareholders’ meetings in accordance with the law, preparing minutes of the board meetings and shareholders’ meetings, assisting directors in taking office and taking continuing education courses, providing directors with materials needed to perform duties, and assisting directors in complying with laws.The duties performed are as follows:

1. Assisted independent directors and general directors in performing their duties, provided necessary materials they needed, and arranged for directors’ continuing education courses:
   • Submitted the latest amendments and developments of laws and regulations related to the Company’s business field and corporate governance to board members when they took office and updated them regularly.
   • Reviewed the confidentiality level of relevant information and provided the Company information required by directors to maintain smooth communication between directors and business managers.
   • Arranged for relevant meetings between the chief internal auditor and the CPAs when there was a need for them to meet in person, to understand the Company’s financial business in accordance with the Corporate Governance Best-Practice Principles.
   • Assisted independent directors and general directors in formulating annual training plans and arranged for courses based on the Company’s industry characteristics and directors’ education and experience.

2.Assisted in handling the procedures of board meetings and shareholders’ meetings and ensuring legal compliance for resolutions adopted:

• Reported the Company’s corporate governance situation to the board, independent directors, and the audit committee, and confirmed if the Company’s shareholders’ meetings and board meetings were in compliance with applicable laws and the Corporate Governance Best-Practice Principles.
• Assisted and reminded directors of the laws and regulations that should be followed when performing duties or formally adopting resolutions at board meetings, and provided advice when the board was about to pass a resolution illegally.
• Was responsible for reviewing the release of material information on important resolutions passed by the board after a board meeting, to ensure the legality and accuracy of the content of the material information and information transparency for investors.

3. Notified directors of a board meeting no later than seven days before the board agenda was drafted, convened meetings, and provided meeting materials, reminded, in advance, directors of recusal from a proposal, in which personal interest was involved, if any, and completed board meeting minutes within 20 days after the meeting.

4. Registered, in advance, the date of a shareholders’ meeting in accordance with the law, prepared a meeting notice, meeting handbook, and minutes before a deadline as required by law, and registered any changes in the case of amendment to the articles of incorporation or an election of directors.

 

Corporate governance structure

Succession plan and its operation of important management team

1. Our employees that are Assistant Vice President and above are considered in the important management team, in charge of operating management in the organization. Substitutes are available on all management levels.
2. The Company organizes a strict selection and evaluation system for succession plan of top management (including the President). Internal corporate talents are evaluated fairly, justly, objectively to select potential talents for succession. The Company cultivates internal talents with high potential. Cultivation covers leadership potential, personality, professional knowledge and management function.
3. The member of important management team shall possess necessary professional skills, experience and background. By executing different project tasks in normal times, three skills including management knowledge, management skill and management leadership are cultivated. The value and operation philosophy of the member must be consistent with our concept of “Ethical Company, Order Market, Responsible Work” and our corporate culture of “Integrity, Professionalism, Determination, Innovation.”
4. As for the key of the internal training plan of the top management team, the Company provides supporting resources or designs or adjusts the function for our diverse medium and senior-level human resources. The top management team joins the monthly management meeting and arranges supervisors to share and interact with each other on management issues through project task. The online course learning platform is available, covering leadership, management, technology, innovation and industrial trend for the members of the management team to learn themselves and create their comprehensive operational competence.
5. Meanwhile, by quarterly review and annual employee performance evaluation system, critical talents are rotated to different departments based on our development strategy to cultivate diverse talents, beneficial to talent inheritance. By observation and performance evaluation, the Company understands the area that requires improvement, personal development need and company expectation. The evaluation result is used as the reference for further succession plan. The overall training lasts one to two years.

Risk management policies

The Regulations Governing the Risk Control Procedures was passed by the board of directors’ meeting on November 4, 2020. The Company evaluates the risk once a year, sets up risk management policies for all kinds of risks and covers and implements the management goal, risk evaluation, risk response and risk control. The Company aims to identify, measure and control all kinds of risks effectively, keep the risks incurred from the business activity within an acceptable scope.

To ensure our stable business operation and sustainable development, all kinds of risks are defined based on our operating strategy and goal. This aims to prevent possible losses within the bearable risk level, build an overall risk management organization structure and risk management system.

In anticipation of economic, environmental, and social risks associated with our industry, we proactively manage various uncertainties. Moving forward, we will further strengthen our corporate risk management systems and continue to enhance our employees’ awareness of risk management. This will enable us to effectively identify, manage, and mitigate risks and their associated uncertainties.

Risk Control Architectural Diagram

The company reports to the board of directors once a year the risk map and response measures after risk assessment analysis (as shown in the table below).

Information security policy

一、Foreword

Due to the characteristics of the business of Senao International Co., Ltd. (hereinafter referred to as the Company), in order to protect the rights and interests of its customers, shareholders and the Company, the Company and all employees have the responsibility and obligation to jointly establish and maintain a safe information and communication operating environment, and to make information security a part of the corporate culture. The information security policy is formulated to clearly define security goals and requirements for compliance.

二、Scope of application

1. All employees of the Company

   Our related information system

   Manufacturer and visitor

   Other personnel or organizations applying for the policy according to regulations or contracts

三、Purpose

The purpose of the Company's information security policy is to provide a corporate information security guideline and direction that can be followed, to clearly define the Company's information security management goals, and to serve as a guiding principle for the Company's business units to regulate their business security responsibilities. Strengthen information security management to ensure the security of information data, systems, equipment and network communications to effectively reduce information assets from theft, improper use, leakage, tampering, damage or system interruption due to human negligence, vandalism, equipment failure or natural disasters. In addition, comply with the information security management system (ISMS) requirements to ensure the confidentiality, integrity and availability of information assets. 1. Confidentiality: Only authorized personnel can reasonably use the information to prevent improper disclosure. 2. Integrity: Ensure that the information is not falsified without authorization and that the information processing methods and results are correct. 3. Availability: Ensure that authorized users can obtain information and use relevant assets when needed.

四、Information security organization