Audit Committee

Audit Committee Member

Audit Committee Operating situation

In order to strengthen the company’s management mechanism and improve operating efficiency, an Audit Committee was established to replace the Supervisor from May 27, 2022 onwards. Committee members are all independent directors. The company matters requiring consent of the Audit Committee are as below:

Adoption or amendment of an internal control system pursuant to Article 14-1.

Assessment of the effectiveness of the internal control system.

Adoption or amendment, pursuant to Article 36-1, of handling procedures for financial or operational actions of material significance, such as acquisition or disposal of assets, derivatives trading, extension of monetary loans to others, or endorsements or guarantees for others.

A matter bearing on the personal interest of a director.

A material asset or derivatives transaction.

A material monetary loan, endorsement, or provision of guarantee.

The offering, issuance, or private placement of any equity-type securities.

The hiring or dismissal of an attesting CPA, or the compensation given thereto.

The appointment or discharge of a financial, accounting, or internal auditing officer.

Annual financial reports and second quarter financial reports that must be audited and attested by a CPA, which are signed or sealed by the chairperson, managerial officer, and accounting officer.

All material matters of the Company and all material matters under the Competent Authority regulations.

Audit Committee Member

Name	Title	Academic Background
Lin I-Pei	Convener	National Taiwan University, Dept. Finance – PhD Dean, College of Management, Chaoyang University of Technology Member, Nantou County Government Public Debt
Chen Sheng-San	Member	PhD from Department of Chemistry at Kansas State University Associate professor (part-time), Department of Information and Finance Management,National Taipei University of Technology
Chen Kan-Nan	Member	PhD, University of IIlinois Chicago Emeritus professor, Department of Chemical and Materials Engineering, Tamkang University

Name

Title

Academic Background

Lin I-Pei

Convener

National Taiwan University, Dept. Finance – PhD

Dean, College of Management, Chaoyang University of Technology

Member, Nantou County Government Public Debt

Chen Sheng-San

Member

PhD from Department of Chemistry at Kansas State University

Associate professor (part-time), Department of Information and Finance

Management,National Taipei University of Technology

Chen Kan-Nan

Member

PhD, University of IIlinois Chicago

Emeritus professor, Department of Chemical and Materials

Engineering, Tamkang University

Audit Committee Operating situation

The 1st term Audit Committee attendance details from May 27, 2022, to now: 4 meetings held.

Attendance is as follows：

Name	Attendance (B)	Meetings (A)	Attendance (B/A) %
Lin I-Pei	4	4	100
Chen Sheng-San	4	4	100
Chen Kan-Nan	4	4	100

Discussion Topics and Results
November 9 2022Q3 consolidation of financial reporting. Passed by all attending committee members and reported to the Board of Directors. Application for bank loan. Passed by all attending committee members and reported to the Board of Directors. Added internal control system and internal audit implementation rules for “repurchase treasury stock management.” Passed by all attending committee members and reported to the Board of Directors. October 24 Proposal to make investments from subsidiary Magictex Apparel Corporation. Passed by all attending committee members and reported to the Board of Directors. September 30 Loaning of Funds and Making of Endorsements/Guarantees for affiliated company. Passed by all attending committee members and reported to the Board of Directors. Revision of “Procedures for Internal Material Information Handling and Prevention of Insider Trading” Passed by all attending committee members and reported to the Board of Directors. Revision of “Procedures for Lending Funds to Others” of related company, Yield Crown Ltd. Passed by all attending committee members and reported to the Board of Directors. Revision of “Board Meeting Code of Conduct” Passed by all attending committee members and reported to the Board of Directors. Proposal for leave without pay of Internal Audit Officer. Passed by all attending committee members and reported to the Board of Directors. Proposal to set up superficies on the Subsidiary G-FUN INDUSTRIAL CORPORATION to build the manufacturing facility. Passed by all attending committee members and reported to the Board of Directors. August 8 2022Q2 – Consolidated Financial Statements. Passed by all attending committee members and reported to the Board of Directors. Line of credit for loan to subsidiary YIELD CROWN LTD. Passed by all attending committee members and reported to the Board of Directors. ADVANCE WISDOM LTD. line of credit for loan to subsidiary ADVANCE WISDOM COMPANY LIMITED. ALPHA BRAVE INC. line of credit for loan to subsidiary ALPHA BRAVE COMPANY LIMITED. Passed by all attending committee members and reported to the Board of Directors. Apply to the bank for a loan amount. Passed by all attending committee members and reported to the Board of Directors. The investment in ADVANCE WISDOM LTD by ADVANCE WISDOM COMPANY LIMITED, a related company. Passed by all attending committee members and reported to the Board of Directors. Added internal control system and internal audit implementation rules for“Audit committee operation management”. Committee member Chen Sheng-San proposed that if there is a situation of recusal and conflicts of interest, the chairman is requested to raise the issue. The rest passed without objection.

Discussion Topics and Results

Audit Committee

Audit Committee Member

Audit Committee Operating situation

Thank you!