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Primax AGM Information 2023

Jun 13, 2023

52436_rns_2023-06-13_3d5faedb-b0c1-4b72-b879-3d7a79ee338c.pdf

AGM Information

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PRIMAX ELECTRONICS LTD. Minutes of 2023 Annual General Meeting of Shareholders (Translation)

Time: May 25, 2023 (Thursday) 9 AM

Meeting type: physical shareholders meeting

Venue: 4F., No. 2, Xuzhou Road, Zhongzheng District , Taipei City

(NTUH International Convention Center)

Present: A total of 332,672,438 shares (including 300,316,077 shares represented by shareholders exercising voting rights electronically) are held by shareholders attending the shareholders' meeting in person or by a proxy, who represent 72.40% of the total number of the Company's outstanding 459,434,324 shares.

Present Directors: Yung-Chung Pan, Yung-Tai Pan, Ji-Ren Lee,

Chun-Pang Wu (Independent Director, Chairman of the Audit Committee),

Chih-Kai Cheng (Independent Director), Ying-Chuan Shen (Independent Director)

Chairman: Yung-Chung Pan, the vice chairman of the Board of Directors

Recorder: Ting-Chuan Chang

A. Meeting called to order

The total numbers of shares represented by the shareholders present constitute the quorum prescribed by law, hence the Chairman called this meeting to order.

B. Chairperson Remark: (omitted)

C. Report:

Report No. 1: The Company's 2022 Business Report for review, please refer to Schedule 1.

Report No. 2: Audit Committee's Review Report on the 2022 Financial Statements for review, please refer to Schedule 2.

Report No. 3: Distribution of employees' and directors' compensation in 2022.

D. Adoption

1. (Proposed by the Board)

Proposal: Adoption of the Company's 2022 Business Report and Financial Statements. Description:

The Company has completed the internal preparation of the 2022 Annual Parent Company Only and Consolidated Financial Statements and has provided the reports to MEI-PIN WU CPA and

SHYH-GANG HORNG CPA of KPMG Taiwan for review and audit. The CPAs have completed the audit. Please refer to Schedule 1 and Schedule 3 for the above Financial Statements as well as the Business Report.

Resolved: the proposal was approved after voting.

Voting Results: Shares represented at the time of voting: 329,689,961 (Including votes casted electronically: 300,316,077 votes)

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Voting Results* % of the total represented
share present
Votes in favor 284,873,145 votes (255,604,261 votes) 86.40%
Votes against 180,339votes (180,339votes) 0.05%
Votes invalid 0 votes 0.00%
Votes abstained 44,636,477votes (44,531,477votes) 13.53%

*Including votes casted electronically (number in brackets)

2.

(Proposed by the Board)

Proposal : Adoption of the Company's 2022 distribution of earnings.

Description:

(1) The Company's net profit of 2022 is NT$2,742,609,398, plus this year's remeasurement of defined benefit obligation NT$6,970,753, minus the impact on disposal of financial assets measured at fair value through comprehensive income due to liquidation NT$343,201, plus equity changes of associated companies and joint ventures accounted for using the equity method NT$2,740,792, minus legal reserve provision NT$275,197,774, plus reversal of special reserve NT$462,212,460, plus unappropriated retained earnings, beginning of year NT$4,681,130,995. The retained earnings available for distribution as of December 31, 2022, are NT$7,620,123,423. The 2022 distribution of earnings prepared according to the Articles of Incorporation is as follows:

PRIMAX ELECTRONICS LTD. Earnings Distribution Proposal

Year 2022 Unit: NT$

PRIMAX ELECTRONICS LTD.
Earnings Distribution Proposal
Year 2022

Unit: NT$

Unit: NT$
Item Amount
Unappropriated Retained Earnings, beginning ofyear 4,681,130,995
Add:Netprofit of 2022 2,742,609,398
Add:Remeasurement of Defined Benefit Obligation 6,970,753
Less:The impact on disposal of financial assets measured at fair
value throughcomprehensiveincome due toliquidation.
343,201
Add:Equity changes of associated companies and joint ventures
accountedforusing the equitymethod
2,740,792
Less:10% Legal Reserve 275,197,774
Add:Reversal of Special Reserve 462,212,460
Retained Earnings Available for Distribution as of December 31, 2020 7,620,123,423
Distribution Item:
Cash Dividends(NT$3.9per share) 1,791,793,864
**Unappropriated Retained Earnings ** 5,828,329,559
Chairman:
Li-Sheng Liang
General Manager:
Li-Sheng Liang
Accounting Manager:
Shu-chuan Chang

Note: 1.The per share dividends above are based on the459,434,324 outstanding shares as of Feb.14, 2023 .

  1. For the distribution of cash dividends, all dollar amounts less than NT$ 1 for fractional shares shall be listed as the Company's other income.

  2. The excepted dividend payout ratio for this distribution of profits is 64%

(2) For this distribution of profits, the 2022 earnings will be subject to distribution on a priority basis.

  • (3) The cash dividends total NT$1,791,793,864 and the per share dividends to be distributed are NT$3.9. The dividends will be distributed to the shareholders listed in the shareholders' roster on the ex-dividend date according to their respective shareholding. The above distribution ratio is calculated based on the total 459,434,324 outstanding shares as of Feb. 14, 2023. After the proposal is approved at the regular shareholders' meeting, it is proposed the board of directors shall be authorized to determine the ex-dividend date and relevant matters.

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  • (4) For the distribution of earnings, in the event of satisfaction of the vesting conditions on restrictive stock awards, buyback of the Company's shares, assignment or cancellation of treasury stock which influences the ratio of distributable dividends, it is proposed the shareholders' meeting shall authorize the Board of Directors to make proportionate adjustments to the ratio of distributable dividends based on the number of outstanding shares on the ex-dividend date.

Resolved: the proposal was approved after voting.

Voting Results: Shares represented at the time of voting: 330,799,961 (Including votes casted electronically: 300,316,077 votes)

Voting Results* % of the total represented
share present
Votes in favor 290,526,236 votes (260,147,352votes) 87.82%
Votes against 76,339 votes (76,339 votes) 0.02%
Votes invalid 0 votes 0.00%
Votes abstained 40,197,386 votes (40,092,386 votes) 12.15%

*Including votes casted electronically (number in brackets)

E. Discussion

(Proposed by the Board)

1. Proposal: Resolution of amendments to the Company's " Articles of Incorporation ". Description:

  • (1) It is proposed certain provisions of the Company's "Articles of Incorporation" shall be amended in accordance with Article 172-2 of the Company Act.

  • (2) Please Refer to Schedule 4 for a comparison of the amendments to the "Articles of Incorporation ".

Resolved: The proposal was approved after voting.

Voting Results: Shares represented at the time of voting: 330,799,961

(Including votes casted electronically: 300,316,077 votes)


Voting Results*
% of the total represented
share present
Votes in favor 277,227,878 votes (246,865,994 votes) 83.80%
Votes against 6,774,447votes (6,774,447 votes) 2.04%
Votes invalid 0 votes 0.00%
Votes abstained 46,797,636 votes (46,675,636 votes) 14.14%

*Including votes casted electronically (number in brackets)

2.

(Proposed by the Board)

Proposal: Resolution of issue of Restricted Employee Stock Award.

Description:

  • (1) In accordance with Article 267 of the Company Act and Regulations Governing the Offering and Issurance of Sercurities by Securities Issuers published by the Financial Supervisory Commission.

(2) Expected total amounts(shares) of issuance: 4,500,000 shares.

  • (3) Expected issue price: NT$0 per share

  • (4) Vesting conditions:

  • I. Vesting conditions:

Divided into four categories: A, B, C and D and the vesting of each is based on achieving performance goals.

  • (I) Vesting for Category A:

  • i. Each award of Restricted Stock shall vest at a rate of 30% at the end of the first twelve months of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the

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previous year.

  • ii. Each award of Restricted Stock shall vest at a rate of 30% at the end of two years of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • iii. Each award of Restricted Stock shall vest at a rate of 40% at the end of three years of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • (II) Vesting for Category B:

  • i. Each award of Restricted Stock shall vest at a rate of 50% at the end of the first twelve months of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • ii. Each award of Restricted Stock shall vest at a rate of 50% at the end of two years of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • (III) Vesting for Category C:

Each award of Restricted Stock shall vest at a rate of 100% at the end of the first twelve months of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • (IV) Vesting for Category D:

  • i. Each award of Restricted Stock shall vest at a rate of 15% at the end of the first twelve months of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • ii. Each award of Restricted Stock shall vest at a rate of 15% at the end of two years of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • iii. Each award of Restricted Stock shall vest at a rate of 20% at the end of three years of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • iv. Each award of Restricted Stock shall vest at a rate of 20% at the end of four years of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • v. Each award of Restricted Stock shall vest at a rate of 30% at the end of five years of continuous employment in Company or any companies which have a controlling or subordinate relation with the Company after granting the award and achievement of personal performance goals and business performance goals in the previous year.

  • (V) The aforementioned personal performance goals shall mean the accomplishment of individual performance goals in accordance with the Company's "Performance Review and Development Measures", of the company which the employees work for, including pre-set goals and special contributions. The rating of Year-end performance review should be 3 and above.

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  • (VI) The aforementioned business performance goals shall mean the Earnings Per Share (EPS) of the Company for the previous year prior to the scheduled date to vest is not less than NT$4, and the Return On Equity (ROE) and of the Company for the previous year prior to the scheduled date to vest is not less than 13%.

  • II. The type of shares: new common shares of the Company.

  • III. Measures to be taken when employees fail to meet the vesting conditions or in the event of inheritance: In circumstance where the Restricted Stock was not vested due to failure to meet vesting conditions, such shares will be bought back by the Company without charge and will be written off.

  • (5) Qualification criteria for employees:

  • I. Employees who will be eligible to receive RSA are limited to full-time employees who have registered with the Company or any companies which have a controlling or subordinate relation with the Company and will be limited to the ones who are important to the Company's future success and development; (The companies which have a controlling or subordinate relationship with the Company shall be in line with the definition specified in Article 369-2, Article 369-3, Article 369-9, Paragraph 2, and Article 369-11 of the Company Act); whose individual performance are valuable to the Company; or those who are considered as the valuable new-hires. Employee who has hold over 10% shares of the company should be excluded.

  • II. The actual number of shares to be granted will take into account the rank of the employee, performance, overall contribution and other factors, as well as the Company's operational requirements and business development strategy. Prior approval of the Remuneration Committee shall be obtained for those who are employed as managers or directors. Employees who are not directors or managers should first obtain the approval of the Audit Committee. The details of the qualified employees and number of shares will be refer to the Company's "The standard of the employees and number of shares for restricted employee stock award.”

  • III. The total number of shares each individual employee may acquire by exercising the RSAs, plus the total number of employee stock warrants issued by the Company in accordance with Article 56-1 (1) of Regulations Governing the Offering and Issuance of Securities by Securities Issuers, shall not exceed 0.3% of the total number of issued shares. In addition, the number of shares each individual employee may acquire through the exercise of employee stock warrants issued by the Company in accordance with Article 56-1 (1) of the said Regulations shall not exceed 1% of the total number of issued shares.

  • (6) The necessary reason of the current issuance of RSA:

  • For attracting and retaining outstanding professionals, in order to create long-term Company growth and benefits for employees and shareholders.

  • (7) Calculated expense amount:

  • Estimations are made based on NT$56.7, the average share price during the period of 60 trading days before Feb. 9, 2023, the amount of annual cost sharing for year 2023, 2024, 2025 and 2026 shall be NT$ 52,368,750, NT$121,905,000, NT$58,826,250 and NT$22,050,000 respectively, with a total amount of NT$255,150,000.

  • (8) Dilution of the Company's earnings per share (EPS) and other matters affecting shareholder’s equity:

  • Estimations are made based on NT$56.7, the average share price during the period of 60 trading days before Feb. 9, 2023, the diluted EPS for year 2023, 2024, 2025 and 2026 shall be NT$0.11, NT$0.26, NT$0.13, and NT$0.05 respectively. No significant impact on shareholder’s equity.

  • (9) Restrictions before employees meet the vesting conditions once the RSA are vested : Restrictions, covenants, or outstanding issues in relation to the establishment of this Plan shall be dealt in accordance with the relevant laws and the Company's Procedures.

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  • (10)Other important terms and conditions (including stock trust, etc.):

The new shares issued by the Company through the exercise of Restricted Stock shall be dealt in accordance with measures for stock trust.

  • (11)Any other matters that need to be specified:

  • I. For the long-term retention purpose, the Award shall be issued mainly for Category A and D, Award for Category B and C will be issued subject to the commitment of Remuneration Committee, and for the below purpose:

    • (I) For employment of major talents.

    • (II) For the urgent cases (Retain for main technical talents, main manufacturing process talents and high operational impact managers).

The average number of Restricted Employee Stock Award issued for Category A and Category D in recent years (Y2020 to Y2022) is 88% of the total number of Restricted Employee Stock Award; Category B is 7%; Category C is 5%.

  • II. In circumstance where amendments to the conditions for issuance of Restricted Stock are required by instructions from the competent authorities, the amended of relevant laws and rules, or in response to financial market conditions, the Chairman of the Company is authorized to amend these provisions, which shall become effective upon approval by the Board of Directors.

  • III. Based on the total number of issued shares (458,289,324 shares) as of Feb. 7, 2023, the 4,500,000 new shares to be issued will account for 0.98% of the total number of issued shares.

Resolved: the proposal was approved after voting.

Voting Results: Shares represented at the time of voting: 330,799,961

(Including votes casted electronically: 300,316,077 votes)

Voting Results* % of the total represented
share present
Votes in favor 283,272,928 votes (252,894,044 votes) 85.63%
Votes against 813,422votes (813,422 votes) 0.24%
Votes invalid 0 votes 0.00%
Votes abstained 46,713,611 votes (46,608,611 votes) 14.12%

*Including votes casted electronically (number in brackets)

F. Election:

1.

(Proposed by the Board)

Proposal : By-election of directors.

Description:

  • (1) According to the Articles of Incorporation, the Board shall consist of from five to nine directors. Due to the resignation of Independent Director Jia-Bin Duh on November 18, 2022, and the resignation of Director and Chairperson Li-Sheng Liang on May 24, 2023, the Board are short of one seat of director and one seat of independent director.

  • (2) In order to coordinate with the Company's operational planning and strengthen corporate governance, it is proposed to elect one director and one independent director. According to the Articles of Incorporation 16, the candidate nomination system shall be adopted for the election of directors (including independent director), please refer to Schedule 5 for the list of the director candidates and their academic background, and work experiences.

  • (3) The new elected directors shall have a term from May 25, 2023, to July 12, 2024.

  • (4) The election shall be conducted according to the Company's "Rules for Election of Directors."

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Election Results:

The list of the newly elected directors and votes received as follows:


Title

Shareholder number or
ID number

Name
Votes Received
Director E1006* Jia-Bin Duh 255,885,560
Independent Director E2218* Hui-Fan Ma 249,735,811

G. Other Matters:

1.

(Proposed by the Board)

Proposal: Removal of the non-compete restrictions on the director and the newly elected directors. Description:

  • (1) According to Article 209 of the Company Act, a director who conducts business within the business scope of the Company for himself or others shall explain to the meeting of shareholders the essential contents of such an act and secure its approval.

  • (2) To draw on the expertise and relevant experience of the Company's directors to the benefit of the Company, as certain directors concurrently work for other companies, which may constitute the act restricted under Article 209 of the Company Act, it is proposed for resolution to remove the noncompete restrictions on Independent Director Chih-Kai Cheng and newly elected directors. Please refer to Schedule 6 for the details

  • Resolved: (1) Additional information: The director and newly elected director hold the positions in the affiliates or non-competitive companies.

  • (2) the proposal was approved after voting.

Voting Results: Shares represented at the time of voting: 330,799,961

(Including votes casted electronically: 300,316,077 votes)

Voting Results* % of the total represented
share present
Votes in favor 273,091,339 votes (243,839,455 votes) 82.55%
Votes against 10,916,259votes (9,806,259 votes) 3.29%
Votes invalid 0 votes 0.00%
Votes abstained 46,792,363 votes (46,670,363 votes) 14.14%

*Including votes casted electronically (number in brackets)

F. Extempore Motion: None.

Summary of the questions raised by the Shareholder number 109640 :

Questions about the combination of products, optimization goals, profit margin, revenue, and overseas layout planning related to automotive electronics and AIoT.

Reply from the person designated by the chairman :

The long-term goals of the Company are to pursuit that the profit growth is greater than the revenue growth, growth in ROE, improvement of product research and development capabilities, overseas market expansion and strategies continuation.

After replying, the shareholder has no further questions.

G. The meeting was adjourned at 10:12 a.m.

No question was raised by shareholders on the proposal.

  • (The Minutes record the summary of the essential points of the proceedings and the results of the meeting in accordance with Article 183 of Company Act. For more details, please refer to the audio and video recording of the meeting.)

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【 Schedule 1 】

Business Report

By spring 2022, two full years since the outbreak of the coronavirus, the world has limped out of the pandemic and was ready to embrace normalcy with global economy showing signs of recovery and demand growth. However, with the outbreak of the Russia-Ukraine War in February, global supply chain was once again impacted. With war in Ukraine reverberating across the world’s regions, the conflict has triggered a massive shock to global economy, especially to energy and food markets, squeezing supply and pushing up prices to unprecedented levels. To counter inflation, global central banks adopted tighter monetary policies and ramped up interest rates. However, despite these synchronized efforts, raw material prices and costs continued their upward trajectory, leading to a slump in consumer sentiment and demand. As a result, companies around the world reported unexpected high levels of inventory, which lead to uncertainties to economic outlook and business operations, and was a critical challenge to the resilience and responsiveness of all businesses.

Thanks to operational resilience, solid financials and a visionary approach of constantly investing in new products and technologies, Primax Electronics (“PRIMAX” or “the Company”) has been able to grow its business steadily throughout the pandemic, and with better product and customer mix, improved its value-add and margins. Through its unique and visionary Three-Senses-In-One (vision, audio and interface) strategy, PRIMAX will continue to provide high quality and value-add products to its customers. Looking forward, PRIMAX expects automotive electronics, surveillance and security, conferencing products, professional audio, smart home solutions and building automation to be the key technology trends and the next leg of revenue and profit growth for the Company. Although demand for computer peripherals took a hit, especially towards the second half of 2022, PRIMAX was able to mitigate the risks by actively managing its supply chain and inventory levels, which led to significant improvement in operating cash flows compared to a year ago. Meanwhile, with aims of expanding its global footprint and minimizing geopolitical and country risks, the Company continued to ramp up production in Thailand, and expand and solidify its supply chain.

With regards to business operations and financial performance, despite all the challenges and market uncertainties, PRIMAX once again achieved revenue growth in 2022 and delivered record-high earnings. The following is an overview of the Company's 2022 performance.

I. 2022 business operation performance

(I) Overview of financial results in 2022

The Company generated worldwide consolidated net revenues of NT$79,240,765 thousand in 2022, representing a 10.6% growth over the NT$71,649,849 thousand in 2021. Consolidated net income totaled NT$2,868,961 thousand in 2022, representing a 19.9% increase compared to the NT$2,393,221 thousand in 2021.

(II) Cash flow analysis

ash flow analysis
Unit:NT$ thousand
Item 2022 2021 Net Change
Net cash inflow (outflow) from
operatingactivities
6,193,998 1,673,476 4,520,522
Net cash inflow (outflow) from
investingactivities
(533,577) (3,873,658) 3,340,081
Net cash inflow (outflow) from
financingactivities
(4,532,764) 227,249 (4,760,013)

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(III) Profitability Analysis

Profitability Analysis
Item 2022 2021
Return on shareholders’ equity (%)
16.52 14.98
Ratio of operating profit to paid-in capital (%)
72.98 61.78
Ratio of income before tax to paid-in capital (%)
79.19 66.55
Net profit margin (%)
3.62 3.34
Earnings per share (NT$)
6.10 5.13
  • (IV) Research and development

To further maintain its technological lead and enhance competitiveness, the Company invested NT$3,366,095 thousand in R&D in 2022 for the development of new technologies and products, while resources were also allocated for automation to upgrade and improve the production process.

II. 2022 business plans and business development strategies

PRIMAX will continue to enhance its technology by continuous investments into new technologies and by vertically integrating its global R&D resources. The technology enhancement projects will ensure PRIMAX maintains its leadership for core technology products, while at the same time strengthen the Company’s system integration capabilities and ability to develop higher value-add products for its customers.

Through the integration of audio, visual and interface technologies, PRIMAX is able to reach out and embrace a wider audience with its new applications, products and innovations. For visual technology, PRIMAX is actively exploring new applications for its camera module with emphasis on car ADAS, B2B camera, smart locks, surveillance and security, and other smart IoT products. For audio, TYMPHANY will continue its focus on professional audio and high-end consumer solutions, while new products such as video conferencing and car audio will further boost revenue and profit growth. TYMPHANY’s investments into next generation technologies would enhance its product development and integrated solutions ability and expand its lead over competitors. As for its interface business, PRIMAX’s focus will be value-add and smart home related products such as door lock and surveillance and security related products.

For its production strategy and global deployment, PRIMAX’s expansion in Taiwan is a commitment that encompasses the fundamental values of “think globally, act locally, and manufacture intelligently,” a tagline that is deep rooted in the company’s core philosophy. PRIMAX’s state-of-the-art facility Zhubei plant will house an advanced laboratory, support industry-academia collaboration, and invest in R&D and new product development. Aside from serving as a R&D and incubation center, highly automated production lines will be installed in Zhubei for the manufacturing of higher margin niche products such as car ADAS, surveillance and security modules, and AIoT related applications and modules. In addition, PRIMAX’s Thailand plant is becoming cost competitive and an important strategic manufacturing site outside of China that provides flexibility and efficiency in the long-run. The Company is also planning to expand into North America as part of its global deployment and customer service strategy.

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Lastly, the Company is placing strong emphasis on ESG by aligning its strategies with United Nations’ Sustainable Development Goals (SDGs). Definitive goals will be set at the Group level to enforce carbon reduction and energy conservation, while also actively participate in charities and support for underprivileged in remote areas. Moreover, attention will be directed to employee welfare and corporate governance in support of PRIMAX's goal as a best employer and to achieve a sustainable business development.

Chairman and President Li-Sheng Liang

Head of Accounting Shu-chuan Chang

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【 Schedule 2 】

Audit Committee’s Review Report

  • To: Shareholders' Meeting of Primax Electronics Ltd.

Among the Company's 2022 Business Report, Financial Statements and Proposal for Distribution of Earnings prepared and submitted by the Board of Directors, the Financial Statements have been fully audited by KPMG Taiwan which has issued the audit report.

The Audit committee members have audited the above Business Report, Financial Statements and Proposal for Distribution of Earnings and determined they are in compliance with the Company Act and other applicable laws and regulations and therefore issue this report pursuant to the provisions of Article 219 of the Company Act. I hereby submit this report.

Chairman of the Audit Committee: Chun-Pang Wu

Date: February 23, 2023

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【Schedule 3】

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27

【 Schedule 4 】

PRIMAX ELECTRONICS LTD.

Comparison of Amendments to the Articles of Incorporation

Amended Content Current Content Reason for
Amendment and
Explanation
Article 9
Shareholder meetings shall consist of regular
meetings and special meetings. Regular
meetings shall be convened once a year within 6
months from the end of each accounting year.
Special meetings shall be convened as required.
Shareholder meetings can be held by means of
visual communication network or other
methods promulgated by the central competent
authority.
Article 9
Shareholder meetings shall consist of regular
meetings and special meetings. Regular
meetings shall be convened once a year within 6
months from the end of each accounting year.
Special meetings shall be convened as required.
Amended
according to 172-2
of the Company
Act.
Article 30
These Articles of Incorporation were established
on March 8, 2006,
……
Seventeenth amendment was made on July 13, 2021.
Eighteenth amendment was made on May 25, 2023

Article 30
These Articles of Incorporation were established
on March 8, 2006,
……
Seventeenth amendment was made on July 13,
2021

Add an
update to the
amendment
date.

28

Title
Name of Candidate
Education
Experience
Current Position
Director
Jia-Bin Duh
- M.B.A.
J. L. Kellogg School of
Management at
Northwestern University
(USA)
- Department of Control
Engineering National
Chiao Tung University
- Primax Electronics Ltd. / Independent Director
- Tymphany Worldwide Enterprises Ltd. /
Independent Director
- Fu Xun Tong Co., Ltd. / Chairman
- Mobinnova Co., Ltd. / Chairman
- Cisco Systems Inc. (China) / President
- Primax Electronics Ltd. / Chief Strategy Officer
- Tymphany Worldwide Enterprises Ltd. / Representative of
institutional director
- Laowang Holding Limited Taiwan Branch (Cayman) / Director
Independent
Director
Hui-Fan Ma
Master of International
Business, National Taiwan
University
- TSMC / Vice General Manager of Human
Resources
- TSMC / Vice General Manager of Human
Resources
- Trend Micro Inc. / Vice General Manager of
Human Resources
None.
Addendum:
1. Nomination Policy and Process: Directors (including independent director) shall be elected pursuant to the candidate nomination system as specified in
the Articles of Incorporation of the Company. The Nomination Committee undertakes a review of the qualification of candidates and submits a candidate
list for elections to the Board. In accordance with the Corporate Governance Best Practice Principles of the Company, when reviewing the qualification of
candidates, the Nomination Committee shall take into account the operation requirements as well as the diversity of Board Directors, such as the
background, work experience, gender, knowledge, and skills.
2. The overall capacity and diversity of candidates for the directors (including independent director):
Title
Name of Candidate
Education
Experience
Current Position
Director
Jia-Bin Duh
- M.B.A.
J. L. Kellogg School of
Management at
Northwestern University
(USA)
- Department of Control
Engineering National
Chiao Tung University
- Primax Electronics Ltd. / Independent Director
- Tymphany Worldwide Enterprises Ltd. /
Independent Director
- Fu Xun Tong Co., Ltd. / Chairman
- Mobinnova Co., Ltd. / Chairman
- Cisco Systems Inc. (China) / President
- Primax Electronics Ltd. / Chief Strategy Officer
- Tymphany Worldwide Enterprises Ltd. / Representative of
institutional director
- Laowang Holding Limited Taiwan Branch (Cayman) / Director
Independent
Director
Hui-Fan Ma
Master of International
Business, National Taiwan
University
- TSMC / Vice General Manager of Human
Resources
- TSMC / Vice General Manager of Human
Resources
- Trend Micro Inc. / Vice General Manager of
Human Resources
None.
Addendum:
1. Nomination Policy and Process: Directors (including independent director) shall be elected pursuant to the candidate nomination system as specified in
the Articles of Incorporation of the Company. The Nomination Committee undertakes a review of the qualification of candidates and submits a candidate
list for elections to the Board. In accordance with the Corporate Governance Best Practice Principles of the Company, when reviewing the qualification of
candidates, the Nomination Committee shall take into account the operation requirements as well as the diversity of Board Directors, such as the
background, work experience, gender, knowledge, and skills.
2. The overall capacity and diversity of candidates for the directors (including independent director):
Title
Name of Candidate
Education
Experience
Current Position
Director
Jia-Bin Duh
- M.B.A.
J. L. Kellogg School of
Management at
Northwestern University
(USA)
- Department of Control
Engineering National
Chiao Tung University
- Primax Electronics Ltd. / Independent Director
- Tymphany Worldwide Enterprises Ltd. /
Independent Director
- Fu Xun Tong Co., Ltd. / Chairman
- Mobinnova Co., Ltd. / Chairman
- Cisco Systems Inc. (China) / President
- Primax Electronics Ltd. / Chief Strategy Officer
- Tymphany Worldwide Enterprises Ltd. / Representative of
institutional director
- Laowang Holding Limited Taiwan Branch (Cayman) / Director
Independent
Director
Hui-Fan Ma
Master of International
Business, National Taiwan
University
- TSMC / Vice General Manager of Human
Resources
- TSMC / Vice General Manager of Human
Resources
- Trend Micro Inc. / Vice General Manager of
Human Resources
None.
Addendum:
1. Nomination Policy and Process: Directors (including independent director) shall be elected pursuant to the candidate nomination system as specified in
the Articles of Incorporation of the Company. The Nomination Committee undertakes a review of the qualification of candidates and submits a candidate
list for elections to the Board. In accordance with the Corporate Governance Best Practice Principles of the Company, when reviewing the qualification of
candidates, the Nomination Committee shall take into account the operation requirements as well as the diversity of Board Directors, such as the
background, work experience, gender, knowledge, and skills.
2. The overall capacity and diversity of candidates for the directors (including independent director):
Professional knowledge and skills
Law
The information regarding the current operation of the Board of Directors and the Functional Committees, please refer to「III. Corporate Governance
Report 4. Status of Corporate Governance Implementation」of the 2022 Annual Report.


Accounting
and
Financial
Current Position
- Primax Electronics Ltd. / Chief Strategy Officer
- Tymphany Worldwide Enterprises Ltd. / Representative of
institutional director
- Laowang Holding Limited Taiwan Branch (Cayman) / Director
None.
【Schedule 5】
Information
Technology

Risk
Management
List of Director Candidates

Operating
and
Management
Leadship
and
Policy
decision
Professional Experience Management
Financial
Experience - Primax Electronics Ltd. / Independent Director
- Tymphany Worldwide Enterprises Ltd. /
Independent Director
- Fu Xun Tong Co., Ltd. / Chairman
- Mobinnova Co., Ltd. / Chairman
- Cisco Systems Inc. (China) / President

- TSMC / Vice General Manager of Human
Resources
- TSMC / Vice General Manager of Human
Resources
- Trend Micro Inc. / Vice General Manager of
Human Resources
Marketing
Research and
Development
Industry
Basic composition Term of
Independent
director
0~3 years
Education - M.B.A.
J. L. Kellogg School of
Management at
Northwestern University
(USA)
- Department of Control
Engineering National
Chiao Tung University

Master of International
Business, National Taiwan
University
Age 60~69

Nationality
R.O.C. R.O.C.
Gender Male Female
Name of Candidate Jia-Bin Duh

Hui-Fan Ma
Name Jia-Bin Duh Hui-Fan Ma
Title Director Independent
Director
Title Director Independent
Director

29

【 Schedule 6 】

Proposal of removal of the non-competition restrictions on the directors

Title Name Current Position in the other companies
Independent
Director
Chih-Kai Cheng Tymphany Worldwide Enterprises Ltd. / Independent Director
Director Jia-Bin Duh - Tymphany Worldwide Enterprises Ltd. / Representative of
institutional director
- Laowang Holding Limited Taiwan Branch (Cayman) / Director

30