● Dividend Policy

In order to sustain growth and increase profitability, the company shall keep a policy of retaining a portion of the earnings in conformity with relevant laws and regulations. After deduction of the retained earnings, the balance of the surplus is, in principle, distributed in the form of stock dividends and cash dividends, but the cash dividends shall not be less than 10% of the distributed earnings. Nevertheless, if the company has urgent needs for funds to meet requirements for business operations, investments, mergers, or necessary adaptation to new laws and regulations, the board of directors may request the shareholders’ meeting to make adequate adjustment in the ratio of cash dividends; but in any case, the ratio shall not be less than 1% of the distributed earnings. If the distributable cash dividend is less than NT$0.1, then it shall not be distributed.

Terms, timing, and amounts for distribution of earnings: In case there is a surplus, the company shall first pay taxes, and after adjustment in accordance with accounting principles, make up losses and set aside retained earnings, legal surplus, and dividends for preferred shares specified in Article 6-1 and Class-B preferred shares in accordance with the law. For the balance, 0.05% shall be for the bonuses of the employees, and 1% shall be for the remuneration of directors and supervisors. Distribution of the funds, together with the undistributed surplus in the previous year, shall be proposed by the board of directors at the shareholders’ meeting for approval or adjustment.

The board of directors shall be authorized to decide on the distribution of bonuses to employees. If the bonuses are distributed in the form of stock dividends, employees of subsidiary companies approved by the Company Law shall also be entitled to the distribution. The details are to be decided by the board of directors.