• The Chairman's Office is responsible for the matters regarding corporate governance while all departments are responsible in assisting in line with their designated functions. The work plans, operations and execution of the company's corporate governance are as follows, 1. Consult the directors prior to the meting of the Board to plan and determine the agenda, and notify all directors to attend and provide them with sufficient meeting materials at least 7 days before the meeting to understand the content of the relevant issues; For motions that are in conflict with interested persons and should be appropriately avoided, the related parties should be reminded in advance. 2. Register the date of the shareholder's meeting before the legal deadline, prepare and declare meeting notice, meeting manual and meeting minutes before their respective deadline, and register amendments in the articles of incorporation or election of directors and supervisors. 3. Determine appropriate systems and structures to promote the independence of the Board, corporate transparency and the implementation of  legal compliance and internal control.

• The company has established the Corporate Social Responsibility Practice Principals, clearly stating that it is committed to complying with the relevant provisions of CSR.

• In order to strengthen the promotion of CSR education, the Company has successively carried out propaganda instructions of CSR to various departments and personnel, and continues to hold CSR trainings for different topics irregularly or according to the needs of clients.

• The company regularly evaluates operating costs, profitability, price index, internal and external salary equality and performance management, and combines CSR considerations to establish a reasonable salary and compensation policy, and plans to implement incentives, rewards and punishments in the company's work rules and related management regulations.

• The company has established an environmental and safety and health management system and obtained ISO14001 and other certifications.

• The company is committed to improving the efficiency of the use of various resources, promoting the reuse of recycled paper and sorting of waste, and implementing paperless operations. In addition, the Company's production processes do not include any that produce hazardous substances. All cartons and other wastes produced during the Company's production processes are scrapped and recycled by professional subcontractors.

• The company pays attention to the impact of climate change on operational activities, advocates to turn-off power and non-office areas to reduce the use of lamps and continue to classify, recycle and reduce waste, and strengthen the importance of the promotion of  energy conservation and carbon emission reduction. The Company carried out an air-conditioning renovation of the office at the end of the first half of 2015, and installed air-conditioning fans, resulting in an annual 5.37% reduction in energy consumption in 2017. In 2017, the Company installed window glass insulation paper project will be carried out to reduce the air conditioning operation to achieve energy saving.
  

• The company evaluates the full replacement of LED tubes in the office in 2018 will save more than 50% of energy consumption.

(1) The impact of the corporate on the greenhouse emission or impact level :

• Risk of corporate affected by climate change related laws and regulations
  
  To mitigate the global climate change, to reduce greenhouse gas emission and to fulfill the common responsibility for protecting the earth environment, our country established the“Greenhouse Gas Reduction and Management Act”on July 1, 2015 to serve as a basis for the greenhouse gas management of our country. The Company is the leading manufacturer of display stand products, and we do not fall into the category of public/private places of“Stationary Pollution Source of Public/Private Place Required for Declaration of Greenhouse Gas Emission”announced by the Environmental Protection Administration of Executive Yuan; therefore, the risk required to be borne by the Company cannot specified at the current stage.
  

• Substantial Risk of Corporate Caused by Climate Change
  
  Climate change will cause extreme weather, including increased frequency of typhoons (hurricanes), increase of annual average temperature, concentrated and short-time of rains and uneven rainfalls, such that the power consumption for air conditioning and office lighting demand of the Company is increased, leading to increase of power consumption cost.
  

• Opportunity to Corporate Due to Climate Change
  
  In response to the low carbon economic demands of the governments, customers and international investment institutions, the Company seeks to contribute efforts to the greenhouse climate change and considers the sources of various aspects along with the implementation of green research, green factory, enhanced energy saving, water saving, reduction of production energy and environmental information disclosure etc., in light of continuously seeking the reduction of impacts of the Group on the environment.
  

• Whether the corporate (direct, indirect) greenhouse gas emission (specifying the accounting scope and time), whether external verification has been qualified
  
  According to the self-accounting result, the emissions for Scope II in 2018 and 2017 were approximately below the carbon dioxide equivalent of 199,278 and 196,116 kg. The Company will continue to contribute efforts in the reduction of greenhouse gas emission.
  

(2) Strategy, method and goal etc. of the corporate for greenhouse gas management :

• Strategy of the corporate in response to climate change or greenhouse gas management
  
  

  The domestic greenhouse gas emission of the Company refers to the indirect emission type, and the emission source mainly comes from the power consumption demanded by the air conditioning and office lighting. Accordingly, energy saving method is adopted for the establishment of relevant policies in order to achieve the goal of reduction of greenhouse gas emission.

• Corporate greenhouse gas emission reduction goal
  
  

  Since the emission source mainly comes from the power consumption demanded by the air conditioning and office lighting, the greenhouse gas emission reduction of the Company is divided into two parts of the air conditioning and office supply for implementation. With regard to the air conditioning aspect, the Company has installed circulating fans at the ceiling in order to increase the air circulation and to achieve the effect of reducing the indoor temperature, thereby reducing the loading of the air compression and saving power. In terms of the office lighting, the Company has replaced traditional light tubes (bulbs) with LED light tubes (bulbs) in order to reduce the power consumption demand. In addition, the Company also actively promotes and cooperates with various environmental protection policies of the government in order to reduce unnecessary wastes.

  The Company plans to reduce 1% of greenhouse gas emission annually in order to achieve the goal of reduction of greenhouse gas emission year after year.

(3) Budget and plan of the corporate for reduction of greenhouse gas emission

• The power consumption demand of the Company is the main source for the greenhouse gas emission; therefore, increase of the energy usage efficiency is the most important task to be achieved in priority :

  1. Sensor type of lighting fixtures are installed for the public space lighting in order to prevent unnecessary power consumption
  2. Replacement of energy-consuming equipment with the installation of high-efficient equipment
  3. Promotion and management for saving of office power consumption

(4) Carbon reduction effects of products or services of the corporate to customers or consumers

(1) Protection of Employee Rights :

• The company is committed to providing a safe and healthy working environment for employees. For security and access control, each office is equipped with an access control system at the entrance and exit, and cooperates with the security personnel to carry out the relevant control operations for the entrance and exit of the building For fire safety of the building, fire safety inspections and fire drills are regularly conducted annually For water safety of the building, the reservoir is regularly cleaned and the quality of dinking water is subject to regular sampling inspection and announcement. In conjunction with the government's implementation of the smoke-free workplace, outdoor smoking areas are planned and the working environment is in line with government occupational safety and health regulations.

• The company complies with relevant labor regulations and protects the legitimate rights and interests of employees. The Company has established the "Work Rules" in accordance with the "Labor Standards Act" , specifically defining the rights and obligations of both employers and employees. The Company has also established the "Occupational Safety and Health Work Code" is established in accordance with the "Occupational Safety and Health Act" to prevent occupational hazards and protect workers' safety and health. According to Article 7 of the "Taipei County Sexual Harassment Prevention and Autonomous Regulations". The "Sexual Harassment Prevention and Control Measures" is established to prevent sexual harassment in the working environment and to maintain gender equality and personal dignity. The company also carries out various occupational safety and health education and training in accordance with relevant regulations of the government's occupational safety and health education and training.

• The company has established a systematic employee communication mechanism to manage communication with employees through regular interviews and a employee complaints pipeline to handle employee complaints or labor dispute mediation. The company also hosts an electronic bulletin board, enabling employees instant knowledge of important information from the Company.

• The Company values the career development of employees, and regularly examines the inventory of employees' ability gaps from organizational needs, departmental needs and individual needs, in order to plan training programs for employee competence improvement or talent development. The company prepares annual employee education and training programs and special lectures, covering functional training, logical innovation thinking and physical and mental development, to,improve the professional competence of employees and their innovative thinking and balance their physical and mental development.

• The Company has formed an employee welfare committee to organize various activities and provide various welfare measures to boost employee morale and strengthen the collaboration between labor and management. The company regularly carries out employee health checks. In addition to providing basic inspection items required by law, the Company has also raised its budget to increase employee health inspection items.

(2) Supplier Management Regulations :

• In order to comply with the environmental protection related substances regulations, the Company clearly states the requirements for environmental protection related substances to the suppliers. The supplier should promise that materials violating this regulation will not directly or indirectly come into the Company through third parties. The Company also require suppliers to ensure that  their products fully comply with this regulation. If a supplier violates regulations, the Company will start the elimination mechanism and the said supplier will be first for elimination. In addition,  the Company strengthens cooperation with suppliers and work together to prevent violation of CSR policies.

• When evaluating the suppliers, the Company takes into consideration the implementation system of Green Energy Environmental, and require suppliers to work together to protect the environment, save energy and reduce carbon emission. New suppliers will also be evaluated thought the  following aspects, (1) whether the supplier understand the prohibited items of environmentally hazardous substances ; (2) whether the supplier take actions that comply with national and global regulations; and (3) whether the suppliers has a mechanism for not using hazardous substances. In addition, the supplier contracts state the requirement for suppliers to comply with legal requirements such as environmental, occupational safety and health, fire, labor, and ethics, and has a compensation clause. If a supplier fails to improve, it will no longer be listed as a qualified supplier of the Company.

(3) Participation in Social Welfare :

• The company actively participates in philanthropy. Major achievement of 2016 and 2017 include, During the aftermath of the Earthquake of 6.4 magnitude that took place on February 6th, 2016 in Meinung, Kaohsiung., the Company donated NT$3 million to the Tainan 0206 earthquake funds. During the aftermath of typhoon Nepal that tool place in July 2016, the Company donated NT$1 million to the Taitiung county "Typhoon Nepal Recovery. In addition, the Company also continues to donate to Shy-En Upbring Institute, Mingde Education and Nursing Institute, Feng Der Education and Nursing Institute and other private institutions.