T.S.M.C. - Annual Report 2019 | FinancialReports.eu

Stock code: 1310

2019

MOPS: http://mops.twse.com.tw
Company website: http://www.smct.com.tw

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Taiwan Styrene Monomer Corporation

(Translation)

Printed on Apr 30, 2020

I.Spokesperson

Name:T.K Chung

Position: Deputy General Manager

TEL: +886(2)2396-6007

E-mail: [email protected]

Deputy Spokesperson

Name: Jason Chou Position: Assistant Manager TEL: +886(2)2396-6007 E-mail: [email protected]

II.Headquarter

Address: 8F.-1, No. 6, Sec. 1, Roosevelt Rd., Taipei City 100, Taiwan (R.O.C.) TEL: +886(2)2396-6007

Kaohsiung Plant

Address:NO. 7, Industrial 1st Road. Lin-Yuan , Kaohsiung County 83203, Taiwan ,R.O.C. TEL: +886(7)641-4511

III.Stock Transfer Agent

Name: Yuanta Securities

Address: B1-B2, No.210, Sec.3, Chengde Rd., Taipei City

TEL: +886(2)2586-5859

Website: http://www.yuanta.com.tw

IV.CPA

KPMG

Name: Lin Wu ; Jason Yin

Address: 68F, No.7, Sec.5, Xinyi Road, Taipei City 11049(Taipei 101 Tower) TEL: +886(2)8101-6666

Website: http://www.kpmg.com/tw

V.Overseas Securities Exchange: None

Disclosed information can be found at: None

VI.Corporate Website: http://www.smct.com.tw

I. Letter to Shareholders …………………………………………………………………………………………………………2 II. Company Profile …………………………………………………………………………………………………………………4 1.Date of Incorporation ………………………………………………………………………………………………………………4 2.Company History …………………………………………………………………………………………………………………4 III. Corporate Governance Report ……………………………………………………………………………………………5 1.Organization ………………………………………………………………………………………………………………………5 2.Directors, Supervisors and Management Team ……………………………………………………………………………………6 3.Compensation for directors, supervisors, general manager and deputy general manager in the latest year ………………………14 4.Implementation of Corporate Governance ………………………………………………………………………………………17 5.Information Regarding Fee ………………………………………………………………………………………………………52 6.Alternation of CPA ………………………………………………………………………………………………………………54 7.�Chairperson,�general�manager�and�managers�in�charge�of�finance�or�accounting who�have�worked�at�the�firm�the�CPA�belongs�to�or� its associates ………………………………………………………………………………………………………………………55 8.Changes in Shareholding of Directors, Supervisors, Managers and Major ………………………………………………………55 9.Relationship among the Top Ten Shareholders ……………………………………………………………………………………57 10.�Share�holding�ratio�in�a�reinvestment�entity�by�the�company,�the�directors,�supervisors,�managers�of�the�company�and�businesses� directly�or�indirectly�controlled�by�the�company ………………………………………………………………………………58 IV. Capital Overview ……………………………………………………………………………………………………………59 1.Capital and Shares ………………………………………………………………………………………………………………59 2.Corporate�bond ……………………………………………………………………………………………………………………64 3.Preferred shares …………………………………………………………………………………………………………………64 4.Global�Depository�Receipts ………………………………………………………………………………………………………64 5.Employee Stock Options …………………………………………………………………………………………………………64 6.Restricted Stock …………………………………………………………………………………………………………………64 7.Status of New Shares Issuance in Connection with Mergers and Acquisitions ……………………………………………………64 8.Financing Plans and Implementation ……………………………………………………………………………………………64 V. Operational Highlights ………………………………………………………………………………………………………65 1.Business Activities ………………………………………………………………………………………………………………65 2.Market and Sales Overview ………………………………………………………………………………………………………68 3.Human Resources …………………………………………………………………………………………………………………73 4.Environmental Protection Expenditure …………………………………………………………………………………………73 5.Labor�Relations …………………………………………………………………………………………………………………75 6.Important Contracts ………………………………………………………………………………………………………………78 7.Reinvestment entities ……………………………………………………………………………………………………………78 VI. Financial Information ………………………………………………………………………………………………………79 1.Five-Year Financial Summary ……………………………………………………………………………………………………79 2.Five-Year Financial Analysis ……………………………………………………………………………………………………84 3.Supervisors, or Audit Committee's Report in the Most Recent Year ……………………………………………………………87 4.Financial Statements for the Year ………………………………………………………………………………………………88 5.Separate�financial�statements�of�the�company�in�2018�audited�by�CPA ………………………………………………………163 6.Financial distress happened to the Company and its Associates ………………………………………………………………234 VII. Review of Financial Conditions, Operating Results, and Risk Management ………………………………234 1.Analysis of Financial Status ……………………………………………………………………………………………………235 2.Analysis of Operation Results …………………………………………………………………………………………………238 3.Analysis of Cash Flow …………………………………………………………………………………………………………239 4.Major Capital Expenditure Items ………………………………………………………………………………………………240 5.�Investment�Policy�in�Last�Year,�Main�Causes�for�Profits�or�Losses,�Improvement�Plans�and�the�Investment�Plans�for�the�Coming� Year ……………………………………………………………………………………………………………………………240 6.Analysis of Risk Management …………………………………………………………………………………………………240 7.Other important items …………………………………………………………………………………………………………242 VIII. Special Disclosure ………………………………………………………………………………………………………243 1.Summary of Affiliated Companies ……………………………………………………………………………………………243 2.Private Placement Securities in the Most Recent Years ………………………………………………………………………250 3.The�Shares�in�the�Company�Held�or�Disposed�of�by�Subsidiaries ……………………………………………………………250 4.Other necessary supplementary item …………………………………………………………………………………………250 IX. Items which have material impact on shareholders' equity or prices of securities specified in Sec. 2, Paragraph 3, Article 36 of the Securities and Exchange Law ……………………………………………………250

I. Letter to Shareholders

Dear shareholders,

1. 2019 Business Report:

In�the�first�half�of�2019,�the�annual�maintenance�of�SM�plants�in�Asia�concentrated�from�March�to�May,� during�which�the�capacity�loss�was�about�640,000�tons.�In�addition,�affected�by�floods,�heavy�fog�and�fire�in� the dock storage tank, the shipment of SM exports in the United States was seriously delayed, which affected the arrival of goods to customers in Europe and Northeast Asia, such as South Korea and Taiwan; the SM price�was�therefore�supported.�On�the�cost�side,�due�to�the�new�production�capacity�of�benzene,�the�benzene� market�suffered�an�oversupply,�and�the�price�of�benzene�was�weak;�in�addition,�the�demand�for�ethylene�was� weak�and�the�price�kept�falling�all�the�way,�resulting�in�a�good�profit�of�the�SM�products�of�the�Company�in� the�first�half�of�2019.

However, unhappy with the Chinese government's progress of purchasing US agricultural products, on August 1, 2019, Donald Trump announced in Twitter that the United States would impose a 10% tariff on all�China's�remaining�exports�to�the�United�States�with�a�value�of�US$300�billion�since�September�1,�2019.� Under�the�influence�of�uncertain�factors�such�as�the�aggravation�of�the�US-China�trade�war,�the�economic� growth of emerging markets such as mainland China is slowing down, the demand for terminal products is declining, and the downstream demand for SM is also slowing down. Due to the resumption of production in the second half of the year, SM products from Europe and America were�re-supplied�to�Northeast�Asia.�With�a�sufficient�supply�and�slow�demand,�the�SM�price�in�Northeast� Asia�fell�rapidly�since�mid-September�2019.�In�addition,�it�is�expected�that�about�1.92�million�tons�of�new� SM�capacity�will�be�put�into�production�in�the�first�quarter�of�this�year�(2020),�resulting�in�a�collapse�of� the SM price in the fourth quarter of 2019 and a loss of the Company. In 2019, the annual SM output was 357,719�tons,�a�decrease�of�938�tons�(about�0.26%)�from�2018;�the�sales�volume�of�SM�was�355,644�tons,�a� decrease�of�64�tons�(about�0.02%)�from�2018.

The consolidated revenue of Taiwan Styrene Monomer Group in the last year was NT$12,219.39 million,�a�decrease�of�NT$3,163.27�million�from�the�previous�year,�and�the�consolidated�net�profit�before�tax� was NT$1,034.76 million, a decrease of NT$512.91 million from the previous year. The consolidated net profit�after�tax�was�NT$881.76�million,�and�the�consolidated�net�profit�after�tax�attributable�to�the�owner�of� the Company was NT$882.07 million.

The Company's individual revenue was NT$11,717.89 million, accounting for 95.90% of the consolidated revenue.

A�summary�of�the�Company's�individual�business�in�2019�is�as�follows:

Comparison of production and sales of main products of the Company in 2019 and 2018: The annual output of SM in 2019 was 357,719 tons, a decrease of 938 tons from 358,657 tons in 2018; the annual sales volume was 355,644 tons, a decrease of 64 tons from 355,708 tons in 2018. In 2019, the annual output of p-diethyl�benzene�was�5,682�tons,�an�increase�of�431�tons�from�5,251�tons�in�2018;�the�annual�sales�volume� was 5,346 tons, an increase of 54 tons from 5292 tons in 2018.

The operating revenue of the Company in 2019 was NT$11,717,894 thousand, a decrease of NT$3,088,650�thousand�(-20.86%)�from�NT$14,806,544�thousand�in�2018;�the�net�profit�after�tax�in�2019�

was�NT$882,065�thousand,�a�decrease�of�NT$334,336�thousand�(-27.49%)�from�NT$1,216,401�thousand�in� 2018. The operating income from reinvestment in 2019 was NT$501,495 thousand, a decrease of NT$74,615 thousand�(-12.95%)�from�NT$576,110�thousand�in�2018.

Summary of Business Plan for 2020:
(1)�Business�purpose:�sustainable�operation�and�continuous�improvement
(2)�Sales�strategy:�full�production�and�full�sales
(3)�Expected�sales�volume
1.�Styrene�Monomer�(SM)
Looking�forward�to�2020,�the�global�outbreak�of�the�coronavirus�and�the�failure�of�OPEC�+�1�on� March 6 to deepen its production reduction have resulted in adverse economic effects such as a sharp drop�in�crude�oil�prices,�thus�raising�concerns�about�the�global�economic�growth�this�year.�OECD� released�a�global�economic�growth�forecast�on�March�2,�and�lowered�the�economic�growth�rate�from� 0.5% to 2.4%. If the new coronavirus epidemic is expanding worldwide, it even estimated that the global�growth�rate�would�be�revised�downward�to�1.5%�this�year.�In�addition,�about�3.72�million�tons� of�new�SM�capacity�will�be�put�into�production�in�mainland�China�this�year,�which�will�make�the�SM� market�competition�more�fierce�this�year.�In�terms�of�production,�the�second�SM�production�line�of�the� Company�has�completed�its�annual�repair�in�the�first�quarter�of�this�year,�and�it�is�estimated�that�the� current�annual�production�is�359,240�tons�and�the�sales�volume�is�360,000�tons,�slightly�better�than� last year.
P-diethyl Benzene

As�more�than�80%�of�p-diethyl�benzene�products�are�exported�and�handled�through�bidding,�we�will� try�our�best�to�win�the�bidding.�The�production�and�sales�target�this�year�is�3,000�tons.

3. Future Development Strategy of the Company:

The Company will continue to strengthen the competitiveness of its SM products. This year, we will start�the�SM1�debottlenecking�project�to�reduce�energy�costs�and�raw�material�consumption;�the�project�is� expected�to�be�completed�in�March�2021,�which�will�make�the�Company's�products�more�competitive�and� improve�the�Company's�business�performance.�In�addition,�we�will�strive�to�expand�the�sales�channels�of� p-diethyl�benzene�products�and�seek�strategic-alliance�manufacturers.

4. Impact of External Competitive Environment, Regulatory Environment and Overall Business Environment

Due�to�the�rise�of�mainland�China,�its�petrochemical�production�capacity�has�been�greatly�expanded.� In addition, the rising awareness of environmental protection in Taiwan and the increasingly strict environmental�laws�and�regulations�make�the�future�business�environment�even�more�severe.

We will continue to improve our work, and meet the requirements of work safety and environmental protection,�such�as�production�safety,�energy�conservation�and�carbon�reduction�when�setting�our� business�objectives,�so�as�to�overcome�the�challenges�that�follow.�The�Company�will�continue�to�develop,� continuously�improve�production�technology,�reduce�production�costs�and�improve�business�performance,� and�will�continue�to�strengthen�the�management�of�the�investment�business�to�seek�the�best�interests�of� shareholders in return for their support and expectations.

I wish you all good health and good luck

Chairperson

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II. Company Profile

1.Date of Incorporation:

Nov.16, 1979

2.Company History

The�company�was�established�in�November�1979�in�line�with�the�government's�economic�plan�to�develop�capital�and�technology� intensive�industries,�and�began�to�build�a�styrene�monomer�(SM)�plant.�Important�events�over�the�years�are�as�follows:

Nov16,1979	TaiwanStyreneMonomerCorporation(TSMC)wasfounded
May,1980	Thefrstproductionlineofstyrene(SM1)begantobebuilt
Mar,1982	Thefrststyreneproductionline(SM1)wascompletedwithanannualoutputof100,000metrictonnes
1984	SM1debottleneckingproject(DB-84)wasconducted
Feb,1985	SM1debottleneckingprojectwascompleted.Theannualoutputwasincreasedfrom100,000mtto140,000mt
1986	Approved listing of TSMC stocks
Aug,1987	Thecompany'sshareswerepubliclyunderwrittenandlisted
Mar,1988	Thesecondproductionlineofstyrene(SM2)wasexpanded
Aug,1989	P-diethylbenzene(P-DEB)plantsbegantobebuilt,withanannualoutputof1,500metrictonnes.
Apr, 1990	P-DEB went into production
Apr,1990	Thesecondproductionlineofstyrene(SM2)wascompleted,withanannualoutputof100,000metrictonnes
1995	ThedebottleneckingprojectDB-95taskforceforfrstandsecondproductionlineswassetup
Sep7,1995	ISO-9002internationalcertifcationwasobtained
Feb,1997	P-DEBcatalystswereimprovedtoincreaseproductioncapacityto3,500tonnesperyear.
Dec5,1997	ISO-14001internationalcertifcationwasobtained
Mar,1999	DB-95debottleneckingprojectwascompleted.Theannualoutputwasincreasedto340,000mt
Jan, 2003	The Board of Directors approved the "Kaohsiung Plant Three-Phase Five-Year Plan Phase I Project - Kaohsiung
	PlantEffciencyandQualityImprovementProject"
Jan, 2006	The Board of Directors passed the case of "Buying Shares of the Company and Transferring them to Employees"
Mar, 2006	The Board of Directors approved the "Kaohsiung Plant Three-Phase Five-Year Plan Phase II Project - SM2
	Dehydrogenation Reaction Zone Effectiveness Improvement and DCS Renewal Project of Process Control System"
Mar, 2006	The Board of Directors passed the case of "Buying Shares of the Company and Transferring them to Employees"
May,2006	"EBReactionZoneChangedtoLiquidPhaseReactionProcess"Projectwascompleted(KaohsiungPlant
	Three-PhaseFive-YearPlanPhaseIProject-KaohsiungPlantEffciencyandQualityImprovementProjectwas
	completed)
Sep,2008	TheBoardofDirectorspassedthecaseof"buyingsharesofthecompanytosafeguardthecompany'screditand
	shareholders' rights and interests"
Dec, 2008	The Board of Directors approved the "First and Third Purchase of Shares of the Company for Cancellation"
Mar, 2009	The Board of Directors approved the "Second Purchase of Shares of the Company for Cancellation"
Dec, 2010	The Board of Directors approved the investment in the tourism industry
Oct,2011	TheBoardofDirectorsapprovedtheinvestmentintheestablishmentofthecogenerationplant
Dec,2011	BoilerCwasturnedintofueloilandnaturalgasboiler
Jun,2012	BoilerBwasturnedintofueloilandnaturalgasboiler
Dec,2012	"Energysavingprojectofmulti-efficiencycascadereboilingdistillationandupgradingofstyrenesecond
	productionline(SM2)processvacuumcompressorproject"wascompleted
Dec,2012	OnJune28,2012,theregularmeetingofshareholdersdecidedtoreducecapitalbyNT$776,071,890andcancel
	77,607,189shares,whichwasapprovedonrecordbytheFinancialSupervisoryCommission(FSC)withletter
	FSC-Cheng-Fa-TzuNo.1010048476datedNovember21,2012,andwasregisteredwithandapprovedbythe
	MinistryofEconomicAffairswithletterMOEA-Shou-Shang-TzuNo.10101251550datedDecember7,2012for
	capital reduction
Dec,2013	Thecogenerationplantbegantobebuilt
Mar, 2014	The annual capacity of PDEB plants was 3,500 tonnes, and the capacity was increased to 7,000 tonnes
Nov,2015	Thecogenerationplantwascompletedandbegancommercialoperations
Nov, 2017	The information security enhancement project was completed
Jan,2019	Anauditcommitteewasestablishedtoreplacethesupervisorsystem
Mar, 2020	The Board of Directors passed the case of "Buying Shares of the Company and Transferring them to Employees"

III. Corporate Governance Report

1. Organization

1.Organization of the Company

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Shareholders' Meeting
Auditors' Committee
Board
Remuneration Committee
Chairperson V ice Chairperson
CEO
Legal�Office GM Planning�Office Auditor
Investment Department Administration Department Finance Department Tech. Department Sales Department
Kaohsiung Plant
KPI Bureau Investment Review Accountant HSSE Tech. Div. Manufacturing Div. Construction Div. Administration Div.
Department Title Responsibilities
Personnel training, administrative services, environmental maintenance, cashiering and related
Administration Manager
legal affairs
Executive Accounting,�taxation,�profit�and�loss�calculation,�business�analysis,�stock�and�financial�
Finance
Manager management
Sales Vice GM Sales of company products, coordination of production plans and procurement of raw materials
Tech. GM Research,�planning�and�execution�of�short,�medium�and�long-term�business�strategies,�etc.
Responsible�for�product�planning�and�production,�product�quality�management,�customer�
technical services,
Kaohsiung Chief
Production and storage management, process research and development improvement,
Plant Deputy
management and maintenance plant, production
Prepare and maintain employee-related safety matters
Investing Deputy
Supervisor of investment and evaluation of short- and long-term investments
Department CEO
Acco IT un it Tech QA PC ry Facto Factory Facto Engi Mainta Mec Adm Purc
unting Unit . Unit . 1 ry. 2 neer Unit nance Unit hasing Unit
hanical Maintenance inistration Unit
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2. Directors, Supervisors and Management Team

(1)Former�directors�and�supervisors�

(from�April�3,�2016�to�Jan.�30,�2019;�The�book�closure�date�was�Jan.�2,�2019)

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Title Nationality/ Country of Origin Name Sex ElectedDate (Years)Term Date First Elected Shareholding when Elected ShareholdingCurrent Spouse & Minor Shareholding Shareholding�by�ArrangementNominee Experience(Education) Other Position who are spouses or within two degrees Executives, Directors or Supervisors of kinship
Shares ％ Shares ％ Shares ％ Shares ％ Title Name Relation
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Title	Nationality/ Country of Origin	Name	Sex	Date Elected	Term (Years)	Date First Elected	Shareholding when Elected	Shareholding when Elected	Current Shareholding	Current Shareholding	Spouse & Minor Shareholding	Spouse & Minor Shareholding	Shareholdingby Nominee Arrangement	Shareholdingby Nominee Arrangement	Experience(Education)	Other Position	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship
							Shares	％	Shares	％	Shares	％	Shares	％			Title	Name	Relation

Chairperson	ROC	HeHe Development Inc. Representative: Yi-Ching Wu	Female	April 3, 2016	3	102.4.3	105,000	0.02	105,000	0.02					Master of Arts with C o m m e n d a t i o n i n Business Management UniversityofNorthumbria atNewcastle(UK) Lecturer/Specialist of International Business Program in Mahasarakham University	Chairperson of Taiwan Styrene Monomer Corporation Director of Yangmingshan Tien Lai Resort & Spa Director of Yuan-Shin Technological Material Co., Ltd.	Director	Yi-Han Wu	Younger brother
							0	0	0	0
Director	ROC	HeHe Development Inc. Representative: Yi-Han Wu	Male			102.6.17	105,000	0.02	105,000	0.02					Department of Computer Science, NTHU Assistant Vice President ofPolarisSecurities(Hong Kong)Limited	Director of Taiwan Styrene Monomer Corporation Representative of Lai-Fu-Kang International Development Co., Ltd.	Chairperson	Yi-Ching Wu	Elder sister
							0	0	0	0
Director	ROC	Meihao Industry Inc. Representative: Tie-Han Sun		Sep. 21, 2017	1.5	99.6.23	40,881,959	7.74	42,279,209	8.01					Master of Laws, NCCU General Manager of Tarako Textile Corp. Supervisor of Sino- American Silicon Products Inc.	Director of Taiwan Styrene Monomer Corporation Director of Yangmingshan Tien Lai Resort & Spa Director of Yuan-Shin Technological Material Co., Ltd. DirectorofAsiaCarbons&Technology Inc. Director of Asia Graphene & Technology Inc.
							0	0	4,547	0
Director	ROC	Cheng-Yuan Liu		April 3, 2016	3	99.6.23	18,191	0	18,191	0					DDepartment of Fine Arts, PCCU Chairperson of Taiwan S t y r e n e M o n o m e r Corporation C h a i r p e r s o n o f Yangmingshan Tien Lai Art Village Development Inc.	Director of Taiwan Styrene Monomer Corporation Chairperson of Yangmingshan Tien Lai Resort & Spa Director of Taiwan United Medical Inc. Chairperson of Jinshuo Engineering Inc. Director of Yangmingshan Tien Lai Art Village Development Inc. Director of Kun Shan International Ltd. Director of Kunshan Yufu Technology Education Consulting Co., Ltd. Chairperson of Grand Capital Co., Ltd.
Director	ROC	Taiwan Styrene Investment Inc. Representative: Wen-Yuan Lin				102.4.3	10,000,000	1.89	10,000,000	1.89					Master, Department of Civil and Environmental Engineering at University of Hawaii at Manoa Deputy commissioner of State-owned Enterprise Commission, MOEA Chairperson of China Steel Corporation Chairperson of Taiwan Cogeneration Corporation Chairperson of Taiwan S t y r e n e M o n o m e r Corporation Chairperson of Taiwan Power Company Chairperson of Eastern Broadcasting Co., Ltd.	Chairperson of Overseas Investment & Development Corp. Chairperson of Eastern Broadcasting Co., Ltd. Chairperson of Taiwan Styrene Monomer Corporation Chairperson of Yangmingshan Tien Lai Resort & Spa Independent director of Bank of Kaohsiung Independent director of Taroko Enterprise Co., Ltd. Independent director of Chun Yu Works & Co., Ltd. Independent director of Rich Horizon International Touch Media Corporation Director of Nanho Industrial Company Director of Gloria Material Technology Corp. Director of Daily Polymer Corp. DirectorofUnitedRenewableEnergy Co., Ltd.
							0	0	105,000	0.02

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Title	Nationality/ Country of Origin	Name	Sex	Date Elected	Term (Years)	Date First Elected	Shareholding when Elected	Shareholding when Elected	Current Shareholding	Current Shareholding	Spouse & Minor Shareholding	Spouse & Minor Shareholding	Shareholdingby Nominee Arrangement	Shareholdingby Nominee Arrangement	Experience(Education)	Other Position	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship
							Shares	％	Shares	％	Shares	％	Shares	％			Title	Name	Relation

Director	ROC	Taiwan Styrene Investment Inc. Representative: Wen-Yen Pan,	Male	Sep. 8, 2016	2 . 6	105.9.8	10,000,000	1.89	10,000,000	1.89					Department of Chemistry, NTNU Ph.D. in Chemical Engineering, University of Wyoming Chairperson of Kuo Kuang Power Co., Ltd. General Manager and Chairperson of CPC Corporation Senior research engineer, Monsanto Company	Chairperson of CTCI Foundation Chairperson of Gintech Energy Corporation
							0	0.00	0	0.00
Director	ROC	Taiwan Styrene Investment Inc. Representative: Pao-Yuan Chen		April 3, 2016	3	102.4.3	10,000,000	1.89	10,000,000	1.89					Master of Chemistry, Illinois Institute of Technology General Manager of China Steel Chemical Corporation	Director of Taiwan Styrene Monomer Corporation
							0	0	10,500	0
Independent director	ROC	Kuo-Shuai Chao				105.4.3	0	0	0	0					EMBA, NCCU Chairperson and General Manager of China Airlines Chairperson of Taiwan Star Telecom Co., Ltd.	Director of Taiwan Styrene Monomer Corporation Chairperson of TDA Airlines Co., Ltd. Independent director of Life Travel & Tourist Service Co., Ltd.
Independent director	ROC	Kuo-Chin Chang,				105.4.3	0	0	0	0					Department of Shipping and Transportation Management, NTOU C h a i r p e r s o n o f B a n k Ta i w a n L i f e Insurance Co., Ltd.	IndependentdirectorofTransGlobeLife Insurance Inc.
Supervisor	ROC	Wei-Ping Hsu				105.4.3	998,889	0.19	1,000,000	0.19					Simon Fraser University Section Chief, Land Bank Insurance Brokerage Co., Ltd.	Vice President of Yang-Te Insurance Brokerage Co., Ltd.
Supervisor	ROC	HonTon Co., Ltd. Representative: Din-Rei Hsu				105.4.3	30,000	0.01	50,000	0.01					Master of China–United States relations, PCCU Deputy Chief, Editorial Department, Independence Evening Post	Supervisor of Taiwan Styrene Monomer Corporation SupervisorofAsiaCarbons& Technology Inc. PublisherofShih-YingEnterpriseCo., Ltd.
							0	0	0	0
Supervisor	ROC	JinChiHon Investment Inc. Representative: Sheng-Tsheng Lee				102.4.3	1,000,000	0.19	1,000,000	0.19					Master, Institute of Mainland China, NSYSU Judge and Chief Judge, Taiwan Kaohsiung District Court Judge and Division-Chief Judge, Taiwan Taitung District Court Supervisor of CHC Resources Corporation Supervisor of Taiwan Wax Co., Ltd.	Director of Taiwan Styrene Monomer Corporation Partner Attorney of Yuan, Chen & Partners Attorneys-at-law Independent director of Taiwan Tea Corporation Director of Bank of Kaohsiung
							0	0	70,000	0.01

(2)�Newly�elected�directors�

(Their�term�starts�from�Jan.�31,�2019�to�Jan.�30,�2022.�The�book�closure�date�is�March�28,�2020.)

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Title Nationality/ Country of Origin Name Sex ElectedDate (Years)Term Date First Elected Shareholding when Elected ShareholdingCurrent Spouse & Minor Shareholding Shareholding�by�ArrangementNominee Experience(Education) Other Position or Supervisors who are spouses or within two Executives, Directors degrees of kinship
Shares ％ Shares ％ Shares ％ Shares ％ Title Name Relation
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Title	Nationality/ Country of Origin	Name	Sex	Date Elected	Term (Years)	Date First Elected	Shareholding when Elected	Shareholding when Elected	Current Shareholding	Current Shareholding	Spouse & Minor Shareholding	Spouse & Minor Shareholding	Shareholdingby Nominee Arrangement	Shareholdingby Nominee Arrangement	Experience(Education)	Other Position	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship
							Shares	％	Shares	％	Shares	％	Shares	％			Title	Name	Relation

Chairperson	ROC	Taiwan Styrene Investment Inc. Representative:Wen-Yuan Lin	Male	Jan. 31, 2019	3	102.4.3	10,000,000	1.89	10,000,000	1.89					Master, Department of Civil and Environmental Engineering at University of Hawaii at Manoa Deputy commissioner of State-owned Enterprise Commission, MOEA Chairperson of China Steel Corporation Chairperson of Taiwan Cogeneration Corporation Chairperson of Taiwan Styrene Monomer Corporation Chairperson of Taiwan Power Company Chairperson of Eastern Broadcasting Co., Ltd.	Chairperson of Overseas Investment & Development Corp. Chairperson of Eastern Broadcasting Co., Ltd. Chairperson of Taiwan Styrene Monomer Corporation Chairperson of Yangmingshan Tien Lai Resort & Spa Independent director of Bank of Kaohsiung Independent director of Taroko Enterprise Co., Ltd. Independent director of Chun Yu Works & Co., Ltd. Independent director of Rich Horizon International Touch Media Corporation Director of Nanho Industrial Company Director of Gloria Material Technology Corp. Director of Daily Polymer Corp. DirectorofUnitedRenewableEnergy Co., Ltd.
							105,000	0.02	105,000	0.02
Director	ROC	Taiwan Styrene Investment Inc. Representative: Chiung-Fen Wang				108.1.31	10,000,000	1.89	10,000,000	1.89					Department of Law, NCHU	Chairperson of Gloria Material Technology Corp. Chairperson of Ching-Chih-Fu Asset Management Co., Ltd. Chairperson of Taiwan Steel Co., Ltd. Attorney in Charge, Pu-Luo Partners Law Firm Vice Chairperson of Chun Zu Machinery Industry Co., Ltd. Director of Taiwan Styrene Monomer Corporation
							0	0	0	0
Director	ROC	Taiwan Styrene Investment Inc. Representative:Jeff Chen				108.1.31	10,000,000	1.89	10,000,000	1.89					EMBA, Guanghua School of Management, Peking University Bachelor of Mechanical Engineering, UC Berkeley Research Fellow, Harvard Business School	Director of Chuan-Pu Investment HOLDING Co., Ltd. Director of Adimmune Corporation Director of Han-Hsien Enterprise Co., Ltd. Director of Taiwan Styrene Monomer Corporation
							0	0	0	0
Director	ROC	Jinchihon Investment Inc. Representative: Sheng-Tsheng Lee				102.4.3	1,000,000	0.19	1,000,000	0.19					Master, Institute of Mainland China, NSYSU Judge and Chief Judge, Taiwan Kaohsiung District Court Judge and Division-Chief Judge, Taiwan Taitung District Court Supervisor of CHC Resources Corporation Supervisor of Taiwan Wax Co., Ltd.	Director of Taiwan Styrene Monomer Corporation Partner Attorney of Yuan, Chen & Partners Attorneys-at-law Independent director of Taiwan Tea Corporation Director of Bank of Kaohsiung Ltd.
							70,000	0.01	70,000	0.01
Director	ROC	Meihao Industry Inc. Representative: Cheng-Yuan Liu		Feb. 9, 2020	2.06	105.4.3	200,000	0.04	200,000	0.04					Department of Fine Arts, PCCU Chairperson of Taiwan Styrene Monomer Corporation Chairperson of Yangmingshan Tien Lai Resort & Spa	Director of Taiwan Styrene Monomer Corporation Chairperson of Jinshuo Engineering Inc.
							18,191	0	18,191	0

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Title Nationality/ Country of Origin Name Sex ElectedDate (Years)Term Date First Elected Shareholding when Elected ShareholdingCurrent Spouse & Minor Shareholding Shareholding�by�ArrangementNominee Experience(Education) Other Position or Supervisors who are spouses or within two Executives, Directors degrees of kinship
Shares ％ Shares ％ Shares ％ Shares ％ Title Name Relation
----- End of picture text -----

Title	Nationality/ Country of Origin	Name	Sex	Date Elected	Term (Years)	Date First Elected	Shareholding when Elected	Shareholding when Elected	Current Shareholding	Current Shareholding	Spouse & Minor Shareholding	Spouse & Minor Shareholding	Shareholdingby Nominee Arrangement	Shareholdingby Nominee Arrangement	Experience(Education)	Other Position	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship
							Shares	％	Shares	％	Shares	％	Shares	％			Title	Name	Relation

Director	ROC	AnChin Development Inc. Representative: Chi-Yao Sun	Female	Jan. 31, 2019	3	108.1.31	200,000	0.04	200,000	0.04					B.A., University of California, Santa Cruz J.D., Vermont Law School LLM in Environmental Law, Pace University Legal Practitioner in NY Legal Practitioner in NJ Director of Sino-American Silicon Products Inc. Director of Legal Affairs of Taiwan Styrene Monomer Corporation OffcerofLegalAffairs,MediaTekInc.	Director of Taiwan Styrene Monomer Corporation
							0	0	0	0
Director	ROC	AnChin Development Inc. Representative:Po-Hao Huang	Male	March 27, 2019	2.75	108.3.27	200,000	0.04	200,000	0.04					DepartmentofPublicFinanceand Taxation, TMUST Special Assistant of Chairperson, Gin- Yu Development Co., Ltd. Special Assistant of Chairperson, CJW International Co., Ltd.	Director of Taiwan Styrene Monomer Corporation Supervisor, Hsiung-Yu Development Co., Ltd. Chairperson, Li-Hsing Development Co., Ltd.
							0	0	0	0
Independent director	ROC	Chin-Chen Chien		Jan. 31, 2019	3	108.1.31	0	0	0	0					PhD(Accounting),RutgersUniversity Professor at NCKU	Independent director of Taiwan Styrene Monomer Corporation Independent director of Gloria Material Technology Corp. Supervisor of Soft-World International Corporation
Independent director	ROC	Kao-Wei Hsu				108.1.31	0	0	0	0					Master of Chemical Engineering, University of Washington Assistant Research Fellow at National Chung-Shan Institute of Science and Technology Senior Engineer, China Petrochemical Development Corporation	Independent director of Taiwan Styrene Monomer Corporation General Manager of Handy Chemical Corporation
Independent director	ROC	Kuo-Ching Chang				105.4.3	0	0	0	0					Department of Shipping and Transportation Management, NTOU IndependentdirectorofTransGlobe Life Insurance Inc. Chairperson of BankTaiwan Life Insurance Co., Ltd. Chairperson of Tung Kai Technology Engineering Co.,Ltd.	Independent director of Taiwan Styrene Monomer Corporation

Jan.�2,�2019�(before�the�election)

2.-(1)�Major�shareholders�of�the�institutional�shareholders��

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Name of Institutional
Major Shareholders
Shareholders
----- End of picture text -----

	HeHe Development Inc.	Yi-HanWu(50%)、Yi-ChinWu(50%)
	Meihao Industry Inc.	ASIAFORTUNEENTERPRISELTD(50.62%),TaiwanStyreneMonomerCorporation(49.38%)
	Taiwan Styrene Investment Inc.	Jun-RenHuang(16.48%)、Jun-YiHuang(15.34%)、Shi-ChenHuang(14.83%)、Hsin-Hsuan Hsu(7.39%)、Hsin-YuHsu(7.39%)、Min-LinYen(7.39%)、Jun-WenChen(7.39%)、Chun-Yen Huang(7.39%)、Fan-ChinLin,(5.68%)、Chao-RonChen(5.68%)
	HonTon Co., Ltd.	Yon-HsiangChang(10%)、Chun-YuLeeLin(30%)、Yu-RuiChang(30%)、Yi-DeChen(15%)、Yi- JieChen(15%)
	JinChiHon Investment Inc.	Li-HsuehChuang(35.00%)、Huang,Shi-Chen(35.00%),、Liang,Huang-Chen(30.00%)
		March28,2020(Afterelection)

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Name of Institutional
Major Shareholders
Shareholders
----- End of picture text -----

	Taiwan Styrene Investment Inc.	Jun-RenHuang(16.48%)、Jun-YiHuang(15.34%)、Shi-ChenHuang(14.83%)、Hsin-Hsuan Hsu(7.39%)、Hsin-YuHsu(7.39%)、Min-LinYen(7.39%)、Jun-WenChen(7.39%)、Chun-Yen Huang(7.39%)、Fan-ChinLin,(5.68%)、Chao-RonChen(5.68%)
	JinChiHon Investment Inc.	Li-HsuehChuang(35.00%)、Huang,Shi-Chen(35.00%),、Liang,Huang-Chen(30.00%)
	KaiJian Co., Ltd.	Lin-LinSun(69.72%)
	AnChin Development Inc.	Kai-JianFan(70%)、Lin-LinSun(25%)

2.-(2)�Major�shareholders�of�the�Company's�major�institutional�shareholders��Jan.�2,�2019�(before�the�election)

Name of Institutional Shareholders	Major Shareholders
Taiwan Styrene Monomer Corporation	MeihaoIndustryInc.(8.01%)、StandardChartedBaoTaJieInc.(4.84%)、ChunYu Inc.- BOTEntrustedAccount(2.47%)、Citi Bank Entrusted Norway Central Bank Investment Account(2.45%)、ChenChiChuanFoundation(2.42%)、YuanJieInvestmentInc.(2.38%)、 ChunYuInc.(2.21%)、TaiwanStyreneInvestmentInc.(1.89%)、Nan Shan Life Insurance Company、Ltd.(1.71%)、Standard Charted Entrusted Credit Suisse Group AG-Renaissance Sales(1.70%)
ASIA FORTUNE ENTERPRISE LTD	ShanHuaCo.,Ltd.(48.4%)

Name of Institutional
Shareholders

Major Shareholders

Taiwan Styrene Monomer
Corporation

MeihaoIndustryInc.(8.01%)、StandardChartedBaoTaJieInc.(4.84%)、ChunYu Inc.-
BOTEntrustedAccount(2.47%)、Citi Bank Entrusted Norway Central Bank Investment
Account(2.45%)、ChenChiChuanFoundation(2.42%)、YuanJieInvestmentInc.(2.38%)、
ChunYuInc.(2.21%)、TaiwanStyreneInvestmentInc.(1.89%)、Nan Shan Life Insurance
Company、Ltd.(1.71%)、Standard Charted Entrusted Credit Suisse Group AG-Renaissance
Sales(1.70%)

ASIA FORTUNE ENTERPRISE LTD

ShanHuaCo.,Ltd.(48.4%)

3.�Professional�qualifications�and�independence�analysis�of�directors�and�supervisors�(2)��

(1)�Information�of�original�directors�(from�Apr.3,�2016�to�Jan.�31,�2019;�The�book�closure�date:�Jan.2,2019)

Criteria Name	MeetOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years Work Experience	MeetOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years Work Experience	MeetOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years Work Experience	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	Numberof OtherPublic Companies in Which the Individual is Concurrently Serving as an Independent Director
	An Instructor or Higher Position in a Department of Commerce, Law, Finance, Accounting, or Other Academic Department Related to the Business Needs of the Company in a PublicorPrivateJunior College, College or University	AJudge,Public Prosecutor, Attorney, CertifedPublic Accountant, or Other Professional or Technical Specialist Who has Passed a National Examinationandbeen AwardedaCertifcatein a Profession Necessary for the Business of the Company	Have Work Experience in the Areas of Commerce, Law, Finance, or Accounting, or Otherwise Necessary for the Business of the Company	1	2	3	4	5	6	7	8	9	10
Yi-Chin Wu			ˇ	ˇ		ˇ		ˇ	ˇ	ˇ		ˇ
Yi-Han Wu			ˇ	ˇ	ˇ	ˇ		ˇ	ˇ	ˇ		ˇ
Tie-Han Sun			ˇ	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Cheng-Yuan Liu			ˇ	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Wen-Yuan Lin			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ		4
Wen-Yen Pan			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Pao-Yuan Chen			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Kuo-Shui Chao	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Kuo-Ching Chang			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Wei-Ping Hsu			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Din-Rei Hsu,			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Sheng-Tsheng Lee		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ		1

(2)�Information�of�newly�elected�Director�(From�Jan.�31,�2019�to�Jan.�30,�2022;�The�book�closure�date:�March�28,�2020)

Criteria Name	MeetOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years Work Experience	MeetOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years Work Experience	MeetOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years Work Experience	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	Numberof OtherPublic Companies in Which the Individual is Concurrently Serving as an Independent Director
	An Instructor or Higher Position in a Department of Commerce, Law, Finance, Accounting, or Other Academic Department Related to the Business Needs of the Company in a PublicorPrivateJunior College, College or University	AJudge,Public Prosecutor, Attorney, CertifedPublic Accountant, or Other Professional or Technical Specialist Who has Passed a National Examinationandbeen AwardedaCertifcatein a Profession Necessary for the Business of the Company	Have Work Experience in the Areas of Commerce, Law, Finance, or Accounting, or Otherwise Necessary for the Business of the Company	1	2	3	4	5	6	7	8	9	10
Wen-Yuan Lin			ˇ	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ		4
Chiung-Fen Wang		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Jeff Chen			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Sheng-Tsheng Lee		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ		1
Cheng-Yuan Liu			ˇ	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Chi-Yao Sun			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Po-Hao Huang			ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Chin-Chen Chien	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Kao-Wei Hsu			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Kuo-Ching Chang			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Kuo-Chin Chang			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1

Note:��Please�tick�the�corresponding�boxes�that�apply�to�the�directors�or�supervisors�during�the�two�years�prior�to�being�elected�or�during�the� term�of�office.

1.�Not�an�employee�of�the�Company�or�any�of�its�affiliates.
2.�Not�a�director�or�supervisor�of�the�Company�or�any�of�its�affiliates.�Not�applicable�in�cases�where�the�person�is�an�independent� director�of�the�Company,�its�parent�company,�or�any�subsidiary�in�which�the�Company�holds,�directly�or�indirectly,�more�than�50%� of the voting shares.
3.�Not�a�natural-person�shareholder�who�holds�shares,�together�with�those�held�by�the�person's�spouse,�minor�children,�or�held�by�the� person�under�others'�names,�in�an�aggregate�amount�of�1%�or�more�of�the�total�number�of�outstanding�shares�of�the�Company�or� ranking in the top 10 in HOLDING.
Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the persons�in�the�preceding�three�subparagraphs.
5.�Not�a�director,�supervisor,�or�employee�of�a�corporate�shareholder�who�directly�holds�5%�or�more�of�the�total�number�of� outstanding�shares�of�the�Company�or�who�holds�shares�ranking�in�the�top�five�HOLDING.
6.�Not�a�director,�supervisor,�officer,�or�shareholder�holding�5%�or�more�of�the�shares,�of�a�specified�company�or�institution�which� has�a�financial�or�business�relationship�with�the�Company.
Not a professional individual who is an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company,�or�institution�that�provides�commercial,�legal,�financial,�accounting�services�or�consultation�to�the�Company�or�to�any� affiliate�of�the�Company,�or�a�spouse�thereof.�These�restrictions�do�not�apply�to�any�member�of�the�remuneration�committee�who� exercises�powers�pursuant�to�Article�7�of�the�"Regulations�Governing�the�Establishment�and�Exercise�of�Powers�of�Remuneration� Committees of Companies whose Stock is Listed on the TWSE or Traded on the TPEx".
Not having a marital relationship, or a relative within the second degree of kinship to any other director of the Company.
9.�Not�been�a�person�of�any�conditions�defined�in�Article�30�of�the�Company�Law.
10.�Not�a�governmental,�juridical�person�or�its�representative�as�defined�in�Article�27�of�the�Company�Law.

(2)�Management�Team�

March�28,�2020

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Title COO Name Sex Date Shareholding Spouse & Minor Shareholding ShareholdingArrangementby�Nominee Experience(Education) Other Position or Supervisors who are spouses or within two Executives, Directors degrees of kinship
Shares % Shares % Shares % Title Name Relation
----- End of picture text -----

Title	COO	Name	Sex	Date	Shareholding	Shareholding	Spouse & Minor Shareholding	Spouse & Minor Shareholding	Shareholding byNominee Arrangement	Shareholding byNominee Arrangement	Experience(Education)	Other Position	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship	Executives, Directors or Supervisors who are spouses or within two degrees of kinship
					Shares	%	Shares	%	Shares	%			Title	Name	Relation

CEO	ROC	Wen-Yuan Lin	Male	108.1.31	105,000	0.02	-	-	-	-	Master, Department of Civil and Environmental Engineering at University of Hawaii at Manoa Deputy commissioner of State-owned Enterprise Commission, MOEA Chairperson of China Steel Corporation Chairperson of Taiwan Cogeneration Corporation Chairperson of Taiwan Styrene Monomer Corporation Chairperson of Taiwan Power Company Chairperson of Eastern Broadcasting Co., Ltd.	Chairperson of Overseas Investment & Development Corp. Chairperson of Eastern Broadcasting Co., Ltd. Chairperson of Taiwan Styrene Monomer Corporation Chairperson of Yangmingshan Tien Lai Resort & Spa Independent director of Bank of Kaohsiung Independent director of Taroko Enterprise Co., Ltd. Independent director of Chun Yu Works & Co., Ltd. Independent director of Rich Horizon International Touch Media Corporation Director of Nanho Industrial Company Director of Gloria Material Technology Corp. Director of Daily Polymer Corp. DirectorofUnitedRenewableEnergyCo.,Ltd.	-	-	-
General Manager and the Deputy General Manager of the Technical Section	ROC	Pao-Yuan Chen	Male	108.1.31	10,500	0.00	-	-	-	-	Master of Chemistry, Illinois Institute of Technology General Manager of CSCC Director of Taiwan Styrene Monomer Corporation	Director of Yangmingshan Tien Lai Resort & Spa Chairperson and General Manager of Yuan-Shin Technological Material Co., Ltd. Director of Yu-Sheng Develoment Co., Ltd. Director of Grand Cathay Venture Capital Co., Ltd. General Manager of Taiwan Styrene Monomer Corporation	-	-	-
Deputy General Manager	ROC	T.K Chung	Male	101.11.28	50,394	0.01	500	0.00	-	-	Master, Department of Chemical Engineering, National Taiwan University Director of Taiwan Styrene Monomer Corporation	Director of Grand Cathay Venture Capital Co., Ltd.	-	-	-
Financial Accounting Department Executive Manager	ROC	Jason Chou	Male	105.4.11	-	-	-	-	-	-	Master, Institute of Corporation Finance, University of Texas at Dallas Manager, Department of Capital Market, President Securities Corp. Assistant President, Financial Accounting Department, Yeh-Chiang Technology Corporation Director of CPDC Deputy General Manager of Thrutek Applied Materials Co., Ltd. Deputy CEO, Department of Investment, Taiwan Styrene Monomer Corporation	Chairperson and General Manager of Yu-Sheng Develoment Co., Ltd. Director of Lei-Ting Construction Co., Ltd. Supervisor of Jinshuo Engineering Inc. Director of Grand Capital Co., Ltd. Supervisor of Asia Graphene & Technology Inc. Supervisor of Yuan-Shin Technological Material Co., Ltd. Supervisor of Yung-Fu Co., Ltd. Director of Taiwan United Medical Inc. Director of Kunshan Yu-Fu Technology Education Consulting Co., Ltd. Director of Grand Cathay Venture Capital Co., Ltd. DirectorofGlobalInvestmentHOLDINGCo.,Ltd. DirectorofAsiaGlobalVentureCapitalIICo.,Ltd. Director of Taiwan Heat Insulating Material Industrial Co., Ltd.	-	-	-
Department of Investment Deputy CEO	ROC	Cheng-Hsin Lu	Male	107.3.13	-	-	-	-	-	-	Ph.D., Baylor College of Medicine Deputy Director, Department of Bioinformatics, Vita Genomics Inc. Research Fellow and Consultant, IBM Taiwan DeputyManager,PlanningOffce,Taiwan Styrene Monomer Corporation Manager, Department of Investment, Taiwan Styrene Monomer Corporation Deputy CEO, Department of Investment, Taiwan Styrene Monomer Corporation	Chairperson and General Manager of Taiwan United Medical Inc. Director of Lei-Ting Construction Co., Ltd. Director of Yung-Fu Co., Ltd. Director of Yuan-Shin Technological Material Co., Ltd. Director of Jinshuo Engineering Inc. Director of Yu-Sheng Develoment Co., Ltd. Director of Kun Shan International Ltd. Chairperson of Grand Capital Co., Ltd. Director of Gvision-USA, INC. DirectorofAsiaCarbons&TechnologyInc. Chairperson of Asia Graphene & Technology Inc. Director of Kunshan Yu-Fu Technology Education Consulting Co., Ltd. Director of Wonderland Enterprise Co., Ltd. Director of Yuan-Jie Investment Co., Ltd. Director of Yu-Jie Investment Co., Ltd.	-	-	-

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0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Compensation Paid to Directors from an Invested Company Other than the Company's Subsidiary
0 0 0
Companies in the consolidated financial� statements 1.23% 0.58% 0.33% 0.31% 0.30% 0.30% 0.30% 0.41% 0.31% 0.31% 0.38% 0.60% 0.39% 0.00% 0.00% 0.00% 0.60%
Income�(%) Compensation Paid to Supervisors from an Invested Company Other than�the�Company's�Subsidiary
Ratio of Total Compensation (A+B+C+D+E+F+G)�to�Net� The Company 1.23% 0.58% 0.33% 0.31% 0.30% 0.30% 0.30% 0.41% 0.31% 0.31% 0.29% 0.60% 0.39% 0.00% 0.00% 0.00% 0.60%
Unit: NT$ thousands
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock
Companies in the consolidated financial�statements Cash 799 0 0 0 0 0 0 0 0 0 0 338 0 0 0 0 506
0.00% 0.01% 0.00%
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock financial�statements
Profit�Sharing-�Employee�Bonus�(G) The Company Cash 799 0 0 0 0 0 0 0 0 0 0 338 0 0 0 0 506 Companies in the consolidated
Companies in the consolidated financial� statements 81 0 0 0 0 0 0 18 0 0 0 63 9 0 0 0 81 0.00% 0.01% 0.00%
Severance�Pay�(F) The 81 0 0 0 0 0 0 18 0 0 0 63 9 0 0 0 81 Ratio�of�total�Remuneration�(A+B+C)�to�net�income�(%) The company
Company
Relevant�Remuneration�Received�by�Directors�Who�are�Also�Employees Companies in the consolidated financial� statements 6,250 2,167 0 0 0 0 0 0 0 0 753 400 568 0 0 0 0 30 40 30
Unit: NT$ thousands Salary, Bonuses, and Allowances�(E)� The Company 6,250 2,011 0 0 0 0 0 0 0 0 0 400 568 0 0 0 0 financial�statements
Allowances�(C) Companies in the consolidated
%)( Companies in the consolidated financial� statements 0.30% 0.30% 0.32% 0.31% 0.30% 0.30% 0.30% 0.30% 0.31% 0.31% 0.29% 0.01% 0.01% 0.00% 0.00% 0.00% 0.01% 30 40 30
The company
Ratio of Total Remuneration (A+B+C+D)�to�Net�Income� The Company 0.30% 0.30% 0.32% 0.31% 0.30% 0.30% 0.30% 0.30% 0.31% 0.31% 0.29% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00%
Companies in the consolidated financial� statements 264 236 430 290 190 190 230 180 330 330 140 50 79 40 40 40 95 0 0 0
Allowances�(D) The 230 230 430 290 190 190 230 180 330 330 140 50 40 40 40 40 40
Company financial�statements
Companies in the consolidated
Companies in the consolidated financial� statements 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 0 0 0 0 0 0 Bonus�to�Supervisors�(B)
Remuneration of supervisors 0 0 0
Bonus to Directors�(C)
The Company 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 2,448 0 0 0 0 0 0 The company
Remuneration 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Companies in the consolidated financial� statements
0 0 0
Severance�Pay�(B) The 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Company financial�statements
Companies in the consolidated
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Companies in the consolidated financial� statements Base�Compensation�(A)
assigned Po-Hao Huang， 0 0 0
Base�Compensation�(A) The Company 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 The company
Name Name
Wen-Yuan�Lin�(Note�1) Cheng-Yuan�Liu�(Note�2) Kuo-Ching Chang Kuo-Shui�Chao�(Note�3) Chiung-Fen�Wang�(Note�4) Jeff�Chen�(Note�4) Sheng-Tsheng�Lee�(Note�5) Chi-Yao�Sun�(Note�4) Chin-Chen�Chien�(Note�4) Kao-Wei�Hsu�(Note�4) Po-Hao�Huang�(Note�6) T.K�Chung�(Note�6) Yi-Ching�Wu�(Note�7) Yi-Han�Wu��(Note�8) Tie-Han�Sun�(Note�8) Wen-Yen�Pan�(Note�8) Pao-Yuan�Chen�(Note�9) Hsu, Wei-Pin Hsu, Din-Rui Sheng-Tsheng Lee
term�of�office�2019/1/1~2019/12/31;Company�driver�wage�410,000�dollars.term�of�office�2019/1/1~2019/12/31;Company�driver�wage�435,000�dollars.term�of�office�2019/1/1~2019/1/30(Independent�director);term�of�office�2019/1/31~2019/12/31(Director).term�of�office�2019/1/31~2019/12/31(Director)or(Independent�director).term�of�office�2019/1/1~2019/1/30(Supervisor);term�of�office�2019/1/31~2019/12/31(Director).2019/3/27resigned T.K Chungterm�of�office�2019/1/1~2019/1/30(Chairperson);Company�driver�wage�550,000�dollars.term�of�office�2019/1/1~2019/1/33(Director).term�of�office�2019/1/1~2019/1/30(Director);term�of�office�2019/1/31~2019/12/31(General�Manager);Company�driver�wage�435,000�dollars.
latest year 1. 2019 Remuneration of Directors Title Chairperson Director Independent Director Director Director Director Director Director Independent Director Independent Director Director Director Director Director Director Director Director �In�addition�to�the�above�table,�recent�annual�corporate�directors�receive�remuneration�for�the�services�provided�to�all�companies�in�the�financial�report�(e.g.�as�consultants�to�non-employees,�etc.):�None Note 1： Note 2： Note 3： Note 4： Note 5： Note 6： Note 7： Note 8： Note 9： 2.2019 remuneration of supervisors Title Supervisor Supervisor�term�of�office�2019/1/1~2019/1/30�Note：
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3.2019 Remuneration of the President and Vice President Unit: NT$ thousands

Title		Salary(A)	Salary(A)	SeverancePay(B)	SeverancePay(B)	Bonuses and Allowances(C)	Bonuses and Allowances(C)	ProftSharing-EmployeeBonus (D)	ProftSharing-EmployeeBonus (D)	ProftSharing-EmployeeBonus (D)	ProftSharing-EmployeeBonus (D)	Ratio of total compensation (A+B+C+D)tonet income(%)	Ratio of total compensation (A+B+C+D)tonet income(%)
	Name	The company	Companies in the con solidated	The company	Companies in the con solidated	The company	Companie in the con solidated	s The company		Companies in the consolidated fnancial statements		The company	Companies in the con solidated fnancial statements
			fnancial statements		fnancial statements		fnancial statement	s Cash	Stock	Cash	Stock
CEO	Wen-Yuan Lin (Note1)	6,250	6,250	81	81	1,070	1,070	799	799	0	0	0.93%	0.93%
CEO	Yi-Ching Wu (Note2)	568	568	9	9	2,816	2,816	0	0	0	0	0.38%	0.38%
"GM and technical vice GM"	Pao-Yuan Chen (Note3)	3,766	3,766	81	81	656	656	506	506	0	0	0.57%	0.57%
"GM and technical vice GM"	Ching-Tien Wu (Note3)	342	342	9	9	2,295	2,295	0	0	0	0	0.30%	0.30%
Sales Vice GM	T.K Chung	2,404	2,404	63	63	2,424	2,424	338	338	0	0	0.59%	0.59%
Financial Executive Manager	Jason Chou	1,781	1,781	108	108	1,696	1,696	262	262	0	0	0.44%	0.44%
Investment Vice CEO	Chen-Xin Lu	1,993	1,993	108	108	1,885	1,885	288	288	0	0	0.48%	0.48%

Note 1：term�of�office�2019/1/31~2019/12/31(CEO);Company�driver�wage�410,000�dollars. Note 2：term�of�office�2019/1/1~2019/1/30(CEO);Company�driver�wage�55,000�dollars. Note 3：�term�of�office�2019/1/1~2019/1/30(GM�Ching-Tien�Wu);term�of�office�2019/1/31~2019/12/31(GM�Pao-Yuan�Chen);Company�driver� wage 435,000 dollars.

4. 2019 Manager Compensation Unit: NT$ thousands

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Ratio of total
Title Name Stock Cash Total compensation to
net�income�(%)
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Title	Title	Name	Stock	Cash	Total	Ratio of total compensation to netincome(%)

Manager	CEO	Wen-Yuan Lin	0	0	0	0%
	CEO	Yi-Ching Wu	0	0	0	0%
	GM and technical vice GM	Pao-Yuan Chen	0	0	0	0%
	GM and technical vice GM	Ching-Tien Wu	0	0	0	0%
	Sales Vice GM	T.K Chung	0	338	338	0.59%
	Financial Executive Manager	Jason Chou	0	262	262	0.44%
	Investment Vice CEO	Chen-Xin Lu	0	288	288	0.48%

Comparison of Remuneration for Directors, Supervisors, Presidents and Vice Presidents in the Most Recent Two Fiscal Years and Remuneration Policy for Directors, Supervisors, Presidents and Vice Presidents.
(1)�The�ratio�of�total�remuneration�paid�by�the�Company�and�by�all�companies�included�in�the�consolidated� financial statements for the two most recent fiscal years to directors, supervisors, presidents and vice presidents of the Company, to the net income.

Unit: NT$ thousands

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2018 2019
Total remuneration Ratio of total remuneration Total remuneration Ratio of total remuneration
paid to directors, paid to directors, supervisors, paid to directors, paid to directors, supervisors,
supervisors, presidents presidents and vice supervisors, presidents presidents and vice
and vice presidents presidents�to�net�income�(%) and vice presidents presidents�to�net�income�(%)
Companies Companies Companies
Companies in
in the in the in the
The The The The the consolidated
consolidated consolidated consolidated
company company company company financial�
financial� financial� financial�
statements
statements statements statements
77,641 81,725 6.38% 6.72% 71,465 73,001 8.10% 8.28%
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(2)�The�company's�remuneration�policies,�standards�and�combinations,�procedures�for�determining�remuneration,� and�the�correlation�with�business�performance�and�future�risks:

The�company's�remuneration�to�directors�and�managerial�officers�is�based�on�the�company's� remuneration concept. The remuneration committee refers to the general pay level of the same industry and factors�in�the�relevance�and�reasonableness�of�the�company's�operating�performance,�personal�performance� and future risks. The Board of Directors comprehensively considers the amount of remuneration, the mode of payment�and�the�future�risks�of�the�company�before�submitting�it�to�the�shareholders'�meeting�for�approval.

In accordance with Article 31 of the articles of incorporation, the remuneration of the directors of the company�may�be�calculated�at�a�rate�not�exceeding�2.5%�of�the�profits�of�the�current�year,�with�reasonable� remuneration given after taking into consideration the operating achievements of the company and their contribution�to�the�performance�of�the�company.�The�remuneration�policy�for�the�general�managers�and� deputy�general�managers�is�based�on�the�company's�"salary�management�policy"�and�the�salary�level�of� the�position�in�the�industry,�as�well�as�the�scope�of�the�powers�and�responsibilities�of�the�position�within� the�company�and�the�contribution�to�the�company's�operating�objectives.�Procedures�for�determining� remuneration�are�based�on�the�company's�"Regulations�for�Performance�Evaluation�of�Directors�and� Managerial�Officers."�In�addition�to�referring�to�the�company's�overall�operating�performance,�future�business� risks and development trends, it also takes into account individual performance achievement rates and contribution�to�the�company's�performance�before�providing�reasonable�compensation.�Relevant�performance� appraisals�and�salary�reasonableness�are�reviewed�by�the�remuneration�committee�and�the�board�of�directors,� with�the�compensation�system�duly�examined�according�to�the�actual�business�conditions�and�relevant�laws� and�regulations,�so�as�to�achieve�a�balance�between�the�sustainable�operation�and�risk�control.

4. Implementation of Corporate Governance:

(1)�Board�operation�

A total of 3/A meetings of the 13[th] Board of Directors were held in the previous period.

The attendance of director and supervisor were as follows:

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Attendance By Attendance�Rate�(%)
Title Name Remarks
in�Person�(B) Proxy 【Ｂ/Ａ】
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Title	Name	Attendance inPerson(B)	By Proxy	AttendanceRate(%) 【Ｂ/Ａ】

Chairperson	HeHe Development Inc. Representative: Yi-Chin Wu	3	0	100%
Director	HeHe Development Inc. Representative: Yi-Han Wu	3	0	100%
Director	Meihao Industry Inc. Representative: Tie-Han Sun	3	0	100%
Director	Cheng-Yuan Liu	3	0	100%
Director	Taiwan Styrene Investment Inc. Representative: Wen-Yuan Lin	3	0	100%
Director	Taiwan Styrene Investment Inc. Representative: Wen-Yen Pan	3	0	100%
Director	Taiwan Styrene Investment Inc. Representative: Pao-Yuan Chen	3	0	100%
Independent Director	Kuo-Shui Chao	2	0	67%
Independent Director	Kuo-Chin Chang	2	0	67%
Supervisor	Wei-Ping Hsu	3	NA	100%
Supervisor	HonTon Co., Ltd. Representative: Din-Rei Hsu	3	NA	100%
Supervisor	JinChiHon Investment Inc. Representative: Sheng-TshengLee	3	NA	100%

2.A total of 11/A meetings of the 14[th] Board of Directors were held in the previous period. The attendance of director and supervisor were as follows:

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Attendance By Attendance Rate
Title Name Remarks
in�Person�(B) Proxy (%)【Ｂ/Ａ】
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Title	Name	Attendance inPerson(B)	By Proxy	Attendance Rate (%)【Ｂ/Ａ】	Remarks

Chairperson	Taiwan Styrene Investment Inc. Representative: Wen-Yuan Lin	11	0	100%
Vice Chairperson	Meihao Industry Inc. Representative: Cheng-Yuan Liu	8	0	100%	2020/1/9 Resign
Director	Taiwan Styrene Investment Inc. Representative: Jun-Fen Wang	11	0	100%
Director	Taiwan Styrene Investment Inc. Representative: Jeff Chen	11	0	100%
Director	Jinchihon Investment Inc. Representative: Sheng-TshengLee	10	1	90%
Director	Kaijian Co., Ltd. Representative: Kuo-Shui Chao	8	0	100%	2020/1/9 resigned
Director	KaiJian Co., Ltd. Representative: Cheng-Yuan Liu	3	0	100%	2020/1/9 assigned
Director	AnChin Development Inc. Representative: Chi-Yao Sun	2	9	20%
Director	AnChin Development Inc. Representative: T.K Chung	3	0	100%	2019/03/27 resigned
Director	AnChin Development Inc. Representative: Po-Hao Huang	8	0	100%	2019/03/27 assigned
Independent Director	Chin-Chen Chien	11	0	100%
Independent Director	Kao-Wei Hsu	11	0	100%
Independent Director	Kuo-Ching Chang	11	0	100%

(2)�Implementation�of�the�Evaluation�of�the�Board�of�Directors:

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Evaluation cycle Evaluation period Evaluation scope Evaluation method Evaluation content
(note�1) (note�2) (note�3) (note�4) (note�5)
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Evaluation cycle (note1)	Evaluation period (note2)	Evaluation scope (note3)	Evaluation method (note4)	Evaluation content (note5)

Once a year	J a n u a r y 1 t o December31, 2019	P e r f o r m a n c e e v a l u a t i o n o f d i r e c t o r s ( i n c l u d i n g i n d e p e n d e n t directors)	Fill in the annual self-assessment questionnaire of directors	Including attendance at the boardofdirectors'meeting, pre-meeting understanding and participation in the discussion of motions, i n t e r a c t i o n w i t h t h e m a n a g e m e n t t e a m , compliance with the law and codes of practice, improvement of corporate governance, continuous training of corporate governance related courses, understanding of the Company, the management team and the industry, and other projects designated bythecompetentauthority ortheboardofdirectors.

Note�1:Fill�in�the�cycle�of�the�board�of�directors'�evaluation,�for�example:�once�a�year.�

Note�2:�The�period�covering�the�evaluation�of�the�board�of�directors�shall�be�filled�in.�For�example,�the�performance�of�the�board�of� directors�from�January�1,�2019�to�December�31,�2019�shall�be�evaluated.�

Note�3:The�scope�covers�the�performance�evaluation�of�the�board�of�directors,�individual�directors�and�functional�Committee.�

Note�4:�The�evaluation�methods�include�internal�self-evaluation�of�the�board�of�directors,�self-evaluation�of�the�board�members,�peer� evaluation, appointment of external professional institutions or experts, and other appropriate methods for performance evaluation. Note 5:According to the evaluation scope, the evaluation contents shall at least include the following items:

(1)�Performance�evaluation�of�the�board�of�directors:�at�least�including�the�degree�of�participation�in�the�operation�of�the�Company,� the�decision-making�quality�of�the�board�of�directors,�the�composition�and�structure�of�the�board�of�directors,�the�selection�and� continuous learning of directors, internal control, etc.
(2)�Performance�evaluation�of�individual�directors:�at�least�including�the�mastery�of�the�Company's�objectives�and�tasks,�the� cognition�of�directors'�responsibilities,�the�degree�of�participation�in�the�Company's�operation,�internal�relationship�management� and communication, directors' professional and continuous learning, internal control, etc.
(3)�Performance�evaluation�of�functional�committees:�the�degree�of�participation�in�the�operation�of�the�Company,�the�cognition�of� the�responsibilities�of�the�functional�committee,�the�decision-making�quality�of�the�functional�committee,�the�composition�and� selection�of�members�of�the�functional�committee,�internal�control,�etc.

Other�mentionable�items:

If there are circumstances referred to in Article 14-3 of the Securities and Exchange Act and resolutions�of�the�directors'�meetings�objected�to�by�independent�directors�or�subject�to�qualified� opinion and recorded or declared in writing, the dates of the meetings, sessions, contents of motion, all independent�directors'�opinions�and�the�company's�response�should�be�specified:

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All independent
directors'
opinions and
Meeting date Resolutions
the company's
handling of their
opinions
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Meeting date	Resolutions	All independent directors' opinions and the company's handling of their opinions

01/02/2019 (1stin2019)	1. It was proposed to revise the Company's "Code of Integrity Management," "Procedures for Applying for Suspension and Resumption of Trading," "Procedures for the Prevention of Insider Trading," "Organizational Regulations of the Remuneration Committee," "Payment Standards of Directors' and Supervisors' Travel Fees/Attendance Fees/Compensation," "Operational Procedures for Endorsements/Guarantees," "Procedures for Loaning Funds to Others," "Regulations on Performance Evaluation of Directors/Supervisors and Managerial Offcers,""ProceduresforAcquiringorDisposingofAssets,""ProceduresforProcessing Internal Major Information," "Regulations for the Election of Directors and Supervisors," "Management of Financial Statement Preparation Processes," "Process of Accounting Professional Judgment, Accounting Policy and Estimation Changes," "Code of Duties for Independent Directors," "Rules of Procedure for Meetings of the Board of Directors," and "RegulationsfortheDisbursementofEmployeeBonuses."	Approvedby all independent directors
01/09/2019 (2ndin2019)	Matterstobereviewedandratifed 1. Amendments to the proposal date of the company's regulations	Approvedby all independent directors
01/24/2019 (3rdin2019)	1.Formulation of the "Seal Management Measures" of the Company.
01/31/2019 (4thin2019)	1.Appointment of the CEO. 2.Appointment of the Vice Chairman. 3.Appointment of the President.
02/20/2019 (5thin2019)	1.Appointmentofmembersofthe"RemunerationCommittee"oftheCompany. 2. Appointment of the Company's director representative of Yusheng Development Co., Ltd. andtheby-electionoftheChairman. 3.ChangeofthelegalrepresentativeoftheCompany'ssubsidiariesandaffliatedenterprises.
03/11/2019 (6thin2019)	Matterstobereviewedandratifed 1.Thecompany's2018annualconsolidatedandindividualfnancialreport. 2.Thecompany'searningsdistributionin2018. 3. The period and place in which the company's 2019 regular meeting of shareholders accepted shareholder proposals. 4. The company was scheduled to hold the 2019 annual general meeting of shareholders at itsKaohsiungPlant(No.7,Gongye1stRd.,LinyuanDist.,KaohsiungCity)at9:30a.m. on Friday, June 28, 2019. 5.Thecompany's2018annualdirectorremunerationandstaffremunerationdistribution. 6. Proposed revision of the company's "Regulations on the Administration of Investees" and "RegulationsontheSupervisionandAdministrationofSubsidiaries". 7. The company's 2018 annual self-assessment operation report and internal control system statement.
04/01/2019 (7thin2019)	1.Replacementofthecompany'saccountingfrmsandcertifedpublicaccountants(CPA) 2. Proposed revision of the Company's "Rules of Procedure for Meetings of the Board of Directors"
05/07/2019 (8thin2019)	1.Thecompany'sconsolidatedfnancialreportforthefrstquarterof2019

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All independent
directors'
opinions and
Meeting date Resolutions
the company's
handling of their
opinions
1.Consolidated�financial�statements�of�the�Company�in�the�second�quarter�of�2019. Approved�by�
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Meeting date	Resolutions	All independent directors' opinions and the company's handling of their opinions
	1.ConsolidatedfnancialstatementsoftheCompanyinthesecondquarterof2019.	Approvedby
08/08/2019 (9thin2019)	2.Signing working capital loan contract with Taiwan Business Bank, South Taipei Branch. 3.SigningworkingcapitalloancontractwithFubonBank. 4.Signing working capital loan contract with Hua Nan Bank Taipei Nanmen Branch. 5.The Company's plan to replace the PC-271 compressor. 6.TheCompany'sex-dividenddateforcashdividendsisproposedtobesetonSeptember1, 2019. 7.DistributionofremunerationtomanagersoftheCompanyin2018 8.Amendmenttothe"SalaryPointsandTitleTable"oftheCompany. 9.Formulation of the Company's "Key Points for Further Education of Directors" 10.TheCompany'ssubsidiariesplantojointlysellthereinvestedexpertbuilding,R&D buildingandtheassociatedlandownedbyKunshanYufuTechnologyEducation Consulting Co., Ltd. and Kunshan Jia'an Technology Education Consulting Co., Ltd. 11. Change of the Company's original plan of disposing of the equity of Taiwan TUM Inc. it holds with another plan. 12.TheCompany'ssubsidiaryAsiaCarbonCo.,Ltd.intendstobedissolvedandgothrough liquidation procedures Extraordinary motion: The Company plans to carry out SM1 Revamping EPC construction.	all independent directors
10/31/2019 (10thin 2019)	1.ConsolidatedfnancialstatementsoftheCompanyinthethirdquarterof2019. 2.Signing working capital loan contract with Mega Bank Dunhua Branch. 3.SigningworkingcapitalloanandreceivableguaranteecontractwithTaiwanCooperative Bank Jingmei Branch. 4. Signing a medium-term working capital loan contract with Taiwan Cooperative Bank Jingmei Branch. 5.Signing working capital loan contract with Chang Hwa Bank Guting Branch. 6.Signing working capital loan contract with Bank of Taiwan Zhongshan Branch. 7.Signing working capital loan contract with First Commercial Bank Bade Branch. 8.Amendment to the Company's organization. 9.The Company's proposal to lift the restrictions on non-competition of managers. 10.BusinessandcapitalexpenditurebudgetoftheCompanyin2020. 11.Audit plan of the Company for 2020. Extraordinarymotion:TheCompanyanditssubsidiaryYushengDevelopmentCo.,Ltd. paidlitigationexpensesonbehalfofformerdirectorsandmanagers; the Company is urged to implement the management of expenses andsupervisionoversubsidiariesinaccordancewiththeCompany's internal control system.

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All independent
directors'
opinions and
Meeting date Resolutions
the company's
handling of their
opinions
----- End of picture text -----

Meeting date	Resolutions	All independent directors' opinions and the company's handling of their opinions

12/24/2019 (11thin 2019)	1.Signing working capital loan contract with the Land Bank Zhonghe Branch. 2.Signing working capital loan and export documentary contract with Entie Bank. 3.Appointment of the Company's personnel. 4.PlantodisposeoftheequityofLeitingConstructionCo.,Ltd.heldbytheCompanyand itssubsidiaryYushengDevelopmentCo.,Ltd. Extraordinary motion: Participation in the discussion of cash capital increase of Yuanjie Investment Co., Ltd.	Approvedby all independent directors
3/11/2020 (1stin2020)	1.TheCompany's2019consolidatedandindividualfnancialstatements. 2.TheCompany's2019earningsdistribution. 3.Distributionofdirectors'remunerationandemployees'remunerationin2019. 4.By-election of directors of the Company. 5.Nomination and review of candidates for directors. 6.Discussion on "Rules of Procedure of Shareholders' Meeting". 7.Formulation of the Company's "Code of Ethical Conduct". 8. The Company plans to hold the 2020 general shareholders' meeting at 9:30 a.m. on May 27(Wednesday),2020attheCompany'sKaohsiungfactory(No.7,IndustryIRoad, LinyuanDistrict,KaohsiungCity).Thereasonsforthemeetingandtheagendaare herewith attached. 9. The period and place of accepting shareholder's proposals for the Company's 2020 general shareholders' meeting. 10.TheperiodandplaceofacceptingnominationsbyshareholdersfortheCompany's2020 general shareholders' meeting. 11.IssuanceoftheletterofbanksupporttotheCompany'ssubsidiaryRongfuCo.,Ltd. 12. Revision of some articles of the Company's Rules of Procedures of the Board of Directors' Meeting. 13. Revision of some articles of the Company's Organizational Rules of the Audit Committee. 14. The Company's 2019 self-assessment report on internal control system and statement of internal control system. 15. Amendment to the Company's "Measures on the Management of the Financial Statement Preparation Process". Extraordinary motion: Reinstatement of the former "independent director" salary payment method.
3/23/2020 (2ndin2020)	1.Measures for transfer of the Company's treasury shares to employees. 2.PlantobuybacktheCompany'sshares. 3. Plan to revise the reasons for convening the 2020 general shareholders' meeting and the agenda.
4/14/2020 (3rdin2020)	1.Reviewandrecognitionofthe2019earningsdistributionplanproposedbyshareholders. 2.Change of the reasons for convening the 2020 general shareholders' meeting.

��(2)�Other�opinions�expressed�by�Independent�director:

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Meeting date Agenda items All independent directors' opinions and the company's handling of their opinions
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Meeting date	Agenda items	All independent directors' opinions and the company's handling of their opinions

01/02/2019 (1stin2019)	Change of TSMC shareholders' interim meeting venue on January 31, 2019	Amongthedirectorspresent,besidesTie-hanSunandCheng-yuanLiu, independent directors Kuo-shuai Chao and Kuo-chin Chang also voiced their objection,whiletheotherfvedirectorspresentagreedwiththeproposal.The chairmanoftheboardwasauthorizedtohandleallrelevantmattersofthe interim meeting of shareholders with full powers.
01/02/2019 (1stin2019)	Motion to adjourn the meeting	Amongthedirectorspresent,besidesTie-hanSunandCheng-yuanLiu, independent directors Kuo-shuai Chao and Kuo-chin Chang also voiced their objection,whiletheotherfvedirectorspresentagreedwiththeproposal. The meeting was dismissed
01/09/2019 (2ndin2019)	Personnel punishment	Independent directors Kuo-shuai Chao and Kuo-chin Chang did not attend the meeting and issued written opinions in advance: (1)Theboardofdirectorscontravenedtheconveningprocedurecontainedin the rules of procedure as it did not provide information on agenda item 2 on the notice, nor was there any emergency, nor did it give a seven days' notice. As a result of supervisors' unsuccessful negotiations with the Chairman, iftheconveningofthemeetingoftheboardofdirectorswasseriously defectiveandcontrarytotherulesofprocedure,Iobjecttotheassembly forgoodreason.Pleaseputitintherecordoftheboardmeetingandonthe MarketObservationPostSystem. (2)Thefactthatnoneoftheindependentdirectorswerepresentviolatedthe provisions of Paragraphs 5 and 6, Article 13 of the rules of procedure, and theboardofdirectorsmeetingshallimmediatelysuspendtheresolution, whichwasinvalideveniftheresolutionhadbeenmade.Ifthemeeting washeldinviolationofthelaw,pleaserecordtheobjectionsinthemeeting minutesandpublishthemontheMarketObservationPostSystem. Theresponsibilitydeterminationofrelevantpersonnelinvolvedinthiscase wasdecidedbyaunanimousvoteofthedirectorspresenttobeforwardedto the judicial organ for investigation. In addition, regarding the legality of today's provisionalboardmeetingconveningprocedure,thecompetentauthority wouldberequestedbylettertoclarifyit.

content�of�the�item,�the�reasons�for�recusal�due�to�conflicts�of�interest�and�the�voting�conditions�shall� be�stated:�there�is�no�such�situation
3.�An�evaluation�of�targets�and�implementation�for�strengthening�the�functions�of�the�board�during�the� current�and�immediately�preceding�fiscal�year:
(1)�Targets�for�strengthening�the�functions�of�the�board

The�board�of�directors�of�the�company�shall,�in�accordance�with�the�"Regulations�Governing� Procedure�for�Board�of�Directors�Meetings�of�Public�Companies,"�formulate�the�rules�of�procedure� of�the�board�of�directors�for�compliance.�In�addition,�according�to�the�"Corporate�Governance� Best-Practice�Principles�for�TSEC/TPEx�Listed�Companies,"�the�board�of�directors�meeting�on�

December�30,�2011�approved�the�establishment�of�a�remuneration�committee�and�drew�up�the� organizational rules of the remuneration committee, which stipulated that the committee shall exercise�the�due�care�of�a�good�administrator�in�conducting�its�duties�and�submit�its�suggestions�to� the�board�of�directors�meeting�for�deliberation.

(2)�An�evaluation�of�implementation�by�the�board

The�compensation�committee�has�been�running�smoothly�since�it�was�set�up�in�2011. The�company�adheres�to�the�consistent�attitude�of�information�transparency�and�publishes� important�decisions�immediately�after�the�meeting�of�the�board�of�directors�on�the�Market� Observation�Post�System�to�safeguard�shareholders'�rights�and�interests.

(2)�Audit�Committee�(or�Attendance�of�Supervisors�at�Board�Meetings)

1.The committee was set up on Jan.31,2019.
��2.A�total�of�9�(A)�meetings�of�the�Board�of�Directors�were�held�in�the�previous�period.� ��The�attendance�of�the�members�was�as�follows:

Position	Name	Attendance in Person(B)	Attendance Rate (%)【Ｂ/Ａ】
Independent director	Chin-Chen Chien	9	100%
Independent director	Kao-Wei Hsu	9	100%
Independent director	Kuo-Ching Chang	9	100%

Other�mentionable�items:

If there are the circumstances referred to in Article 14-5 of the Securities and Exchange Act and resolutions�which�were�not�approved�by�the�Audit�Committee�but�were�approved�by�two�thirds�or� more of all directors, the dates of meetings, sessions, contents of motion, resolutions of the Audit Committee�and�the�Company's�response�to�the�Audit�Committee's�opinion�should�be�specified:

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Independent director's
Meeting Date Proposal opinion and the response
of the company
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Meeting Date	Proposal	Independent director's opinion and the response of the company

2019/03/11 (1stsession1sttime)	1.2018 Consolidated and Individual Financial Statement 2.2018EarningDistribution 3.2018directorandstaffbonusdistribution 4.2018 internal control declaration	Approvedbyall Independent directors
2019/04/01 (1stsession 2ndtime)	1.Accountant replacement
2019/05/07 (1stsession 3rdtime)	1.2019Q1consolidatedfnancialstatement

motion,�causes�for�avoidance�and�voting�should�be�specified:�None

2.�The�implementation�of�the�avoidance�of�interest�motion�by�Independent�director�shall�indicate�the�name� of the Independent director, the content of the motion, the reasons for avoidance of interests and the circumstances of participation in the voting: None.
3.�The�situation�of�communication�between�Independent�director�and�the�internal�audit�director�and�the� accountant�(including�material�matters�relating�to�the�company's�financial�and�business�conditions,�manner� and�results,�etc.).

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Meeting date Agenda Communication with accountant
‧
�Discuss�the�difficulties�occurred�in�preparing�2018�
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Meeting date	Agenda	Communication with accountant
		‧Discussthediffcultiesoccurredinpreparing2018
2019/03/11 (1stsession 1sttime)	Review 2018 self-assessment report	consolidatedandindividualfnancialstatement ‧Discussthecalculationofdirectorandstaffbonus
2019/05/07 (1stsession 3rdtime)	Review 2019 auditor report	‧Discussthediffcultiesoccurredinpreparing2019 Q1consolidatedandindividualfnancialstatement

(3)�Corporate�Governance�Implementation�Status�and�Deviations�from�"the�Corporate� Governance Best-Practice Principles for TWSE/TPEx Listed Companies"

Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Governance Best- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	AbstractIllustration
1.Doesthecompanyestablishand disclose the Corporate Governance Best-PracticePrinciplesbasedon" Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"?		V	Neitherthecompanynoritssubsidiarieshaveyet formulatedtheprinciples,butthecompanyhas developed corporate governance-related rules of procedureformeetingsoftheboardofdirectors, the operating procedures for spokespersons and acting spokespersons, the shareholders' meeting procedure rules, the internal control system, internal audit implementation rules, procedures for the acquisition or disposal of assets, and the operational procedures for endorsements/ guarantees, among other regulations.	Preparing related procedure.
2. Shareholding structure & shareholders' rights (1)Doesthecompanyestablishan internal operating procedure to deal with shareholders' suggestions, doubts,disputesandlitigations,and implementbasedontheprocedure? (2)Doesthecompanypossessthelistof its major shareholders as well as the ultimate owners of those shares?	V V		The company has set up spokespersons, acting spokespersons,stockoffcersandlegaloffcersto deal with shareholders' suggestions or disputes. The company appointed special personnel to keep tabsontheprincipalshareholdersandtheultimate controlling party list of the principal shareholders.	Compliance with related regulations.

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Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Governance Best- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	AbstractIllustration

(3)Doesthecompanyestablishand execute the risk management and firewall system within its conglomerate structure? (4)Doesthecompanyestablishinternal rules against insiders trading with undisclosed information?	V V		The company has formulated and implemented regulations for the operation supervision of subsidiaries. The company has formulated and implemented the operational procedures for management of the prevention of insider trading.	Compliance with related regulations.
3.CompositionandResponsibilitiesof the Board of Directors (1)DoestheBoarddevelopand implementadiversifedpolicyforthe compositionofitsmembers? (2)Doesthecompanyvoluntarily establishotherfunctionalcommittees in addition to the Remuneration Committee and the Audit Committee? (3)Doesthecompanyestablisha standard to measure the performance of the Board, and implement it annually? (4)Doesthecompanyregularlyevaluate the independence of CPAs?	V V V V		The company adopts a candidates nomination system.Theboardofdirectorsshallconsider whether the candidates have relevant industrial knowledge and experience in addition to the legal basicconditionswhennominatingthecandidates, soastoattaindiversificationoftheboard members. The company has set up a remuneration committee, and operates in accordance with the law, with at least two meetings held every year, andacorporatesocialresponsibilitycommittee hasbeenformed.Anauditcommitteeiscurrently inpreparationandwillbeformallyestablishedin 2019 as required. In addition to annual regular appraisals, the remuneration committee shall formulate and regularly review the policies, systems, standards and structures of the performance evaluation and compensation of directors, supervisors and managerialofficers,andsubmititsproposalsto theboardofdirectorsmeetingfordeliberation. Annual assessment.	Preparing related procedure Preparing related procedure Compliance with related regulations. C o n d u c t e d b y responsibleoffcer.

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Implementation Status Deviations from
"the Corporate
Governance Best-
Evaluation Item Practice Principles
Yes No Abstract�Illustration for TWSE/TPEx
Listed Companies"
and Reasons
4. Does the listed company have a V The�legal�office�of�the�company�is�responsible�for� Compliance with
----- End of picture text -----

Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Governance Best- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	AbstractIllustration
4. Does the listed company have a	V		Thelegaloffceofthecompanyisresponsiblefor	Compliance with
corporategovernancespecialist(and) astafforpersontoberesponsible for corporate governance-related matters(includingbutnotlimitedto providing directors, the data required bySupervisortocarryoutbusiness, and the legal handling of Director Meetings related to the meeting, company registration and change registration, production of Director meetings and shareholders' meeting proceedings,etc.)?			corporate governance-related affairs, including conductingboardandremunerationcommittee rules of procedure.	related regulations
5.D o e s t h e C o m p a n y e s t a b l i s h communication channels with stakeholders(includingbutnot limited to shareholders, employees, customersandsuppliers,etc.)and set up interested parties zones on the Company'swebsite,andproperly respond to important CSR issues of concern to stakeholders?	V		The company has set up a stakeholder zone on the company'swebsiteandestablishedcommunication channels with stakeholders through the company's website,telephoneandfaxforsafeguarding the interests of shareholders, employees' rights and interests and integrity management with customers.	Compliance with related regulations
6. D o e s t h e c o m p a n y a p p o i n t a professional shareholder service agency to deal with shareholder affairs?	V		The company appointed the stock transfer agency of Yuanta Securities Co. to handle the affairs of the shareholders' meeting.	Compliance with related regulations.
7. Information Disclosure (1)Doesthecompanyhaveacorporate websitetodisclosebothfinancial standings and the status of corporate governance? (2)Doesthecompanyhaveother information disclosure channels (e.g.buildinganEnglishwebsite, appointing designated people to handle information collection and disclosure, creating a spokesman system,webcastinginvestor conferences)?	V V		Thecompanyhaslaunchedawebsitetoreveal company information. TheEnglish-languagewebsiteiscurrentlyunder construction due to revision. According to the regulations, the company information is disclosed ontheMarketObservationPostSystem,and the company spokesman and acting spokesman systemhasbeenestablishedandimplemented.	Compliance with related regulations. Compliance with related regulations.

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Implementation Status Deviations from
"the Corporate
Governance Best-
Evaluation Item Practice Principles
Yes No Abstract�Illustration for TWSE/TPEx
Listed Companies"
and Reasons
8. I s t h e r e a n y o t h e r i m p o r t a n t V See Note 1 for details. Compliance with
information�to�facilitate�a�better� related regulations.
understanding of the company's
corporate governance practices
(e.g.,�including�but�not�limited�to�
employee rights, employee wellness,
investor relations, supplier relations,
rights of stakeholders, directors' and
supervisors' training records, the
implementation of risk management
p o l i c i e s a n d r i s k e v a l u a t i o n
measures, the implementation of
customer relations policies, and
purchasing insurance for directors and
supervisors)?
9. Has the company implemented a self-evaluation report 2 on corporate governance or has it authorized any other
professional�organization�to�conduct�such�evaluation?�If�so,�please�describe�the�opinion�from�the�Board,�the�result�of�self�
or�authorized�evaluation,�the�major�deficiencies,�suggestions,�or�improvements.
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p o l i c i e s a n d r i s k e v a l u a t i o n measures, the implementation of customer relations policies, and purchasing insurance for directors and supervisors)?	p o l i c i e s a n d r i s k e v a l u a t i o n measures, the implementation of customer relations policies, and purchasing insurance for directors and supervisors)?	p o l i c i e s a n d r i s k e v a l u a t i o n measures, the implementation of customer relations policies, and purchasing insurance for directors and supervisors)?
9. Has the company implemented a self-evaluation report 2 on corporate governance or has it authorized any other professionalorganizationtoconductsuchevaluation?Ifso,pleasedescribetheopinionfromtheBoard,theresultofself orauthorizedevaluation,themajordefciencies,suggestions,orimprovements.
Item	Criteria	Improvement
1.6	Does the company hold a regular shareholders'	The Company is scheduled to hold the general
	meetingbytheendofMay?	shareholders' meeting on May 27, 2020.
	Does the company upload the notice of meeting	It is expected to produce the meeting notice in English in
1.9	inEnglish30daysbeforetheregularmeetingof	2019 or later and upload it as required.
	shareholders?
	Does the company upload the English version	The Company has produced an English version of the
1.10	of the manual for meeting proceedings and	meetinghandbookandsupplementarymeetinginformation
	supplementaryinformation21daysbeforethe	since 2019, and uploaded them in accordance with the
	regular shareholders' meeting?	regulations.
	Does the company upload its annual report in	The Company has produced an English version of the
1.11	English7daysbeforetheregularshareholders'	annual report since 2019, and uploaded it in accordance
	meeting?	with the regulations.
2.1	Does the company disclose its corporate	Deliberationisongoing.
	governance code?
	Does the company have a policy on diversity of	Thecompanyhasdiscussedwiththeboardofdirectors
2.2	boardmembersanddisclosetheimplementationof	overthefeasibilityofitspolicyondiversityofboard
	thepolicyinitsannualreportandonitswebsite?	members.

2.3	Arethechairmanandgeneralmanager(CEO)of the company the same person or the spouse of each other?	The chairman and the CEO of the company are the same person,butthechairmanandthegeneralmanagerarenot the same person or spouse of each other.
2.7	Does the company voluntarily appoint more independentdirectorsthanarerequiredbylaw?	The company has set up an audit committee in 2019, consisting of three independent directors.
2.10	Does the company have an audit committee requiredbylaw?	Thecompanyestablishedanauditcommitteerequiredby law on January 31, 2019.
2.14	Does the company have a non-statutory functional committeewithatleastthreemembersandmore than half of whom are independent directors, anddiscloseitscomposition,responsibilitiesand operations?	The company has set up a remuneration committee with atleastthreemembers,allofwhomareindependent directors, and has disclosed its composition, responsibilitiesandoperation.
2.15	Does the company disclose the communication betweentheindependentdirectorsandtheinternal auditdirectorandCPA(e.g.,theway,matters and results of communication on the company's financialreportandfinancialbusinessstatus)on thecompanywebsite?	Under discussion and planning
2.17	Doestheboardofdirectorsregularly(atleastonce ayear)assesstheindependenceoftheCPAand fully disclose the assessment process in the annual report?	Under discussion and planning
2.21	Does the company have full-time corporate governancepersonnelwhoareresponsiblefor corporate governance related matters, and explain the operation and implementation of the unit in charge in the annual report and on the company website?	The company has set up full-time corporate governance staff,responsibleforcorporategovernancerelatedmatters to explain the operation and implementation of the unit in chargeintheannualreportandonthecompanywebsite.
2.22	Havethecompany'sboardperformanceevaluation regulationsorproceduresbeenapprovedbythe boardofdirectorsmeeting,withaself-evaluation conducted at least once a year and the assessment resultspublishedonthecompany'swebsiteorin the annual report?	Thecompanycarriesoutboardperformanceevaluations onaregularbasis(atleastonceayear),andwilldisclose theevaluationresultsonthecompanywebsiteorinthe annual report when appropriate.
2.23	Havethecompany'sboardperformanceevaluation regulationsorproceduresbeenapprovedbythe boardofdirectorsmeeting,stipulatingthatexternal evaluationsshallbecarriedoutatleastonceevery threeyears,thattheevaluationshallbecarriedout withinthetimelimitsetbytheregulations,and that the implementation and evaluation results shall bedisclosedonthecompany'swebsiteorinthe annual report?	Under discussion

2.24	Have the directors and supervisors of the company completed refresher courses with the hours specifedintheDirectionsfortheImplementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies?	The company has advised the directors to complete the studywithinthehoursspecifedintheDirectionsforthe Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies. We also entrusts the Securities & Futures Institute to conductseminarsonadvancedpracticeof(independent) directors and supervisors for relevant courses twice a year, whichiscommissionedbytheboardofdirectorsofthe company.
2.25	Have the independent directors of the company completed refresher courses with the hours specifedintheDirectionsfortheImplementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies?	Theindependentdirectorsofthecompanyhavefnished thestudywithinthehoursspecifedintheDirectionsfor the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies.
2.30	Is at least one of the company's internal auditors certified as an international internal auditor, international computer auditor or accountant?	Under planning
3.2	Does the company declare important information in English simultaneously?	Under planning
3.4	Does the company release its annual financial reportwithintwomonthsaftertheendofthefscal year?	Under discussion and planning
3.5	Does the company disclose its annual financial reports(includingfnancialstatementsandnotes) inEnglishonitswebsiteortheMarketObservation Post System?	The Company has produced an English version of the fnancialreport(includingfnancialstatementsandnotes) since2019.Itisexpectedthattheannualfnancialreport willbedisclosedinEnglishontheCompany'swebsite from 2020 onward.
3.6	Does the company disclose its interim financial reports(includingfnancialstatementsandnotes) inEnglishonitswebsiteortheMarketObservation Post System?	The Company has produced an English version of the fnancialreport(includingfnancialstatementsandnotes) since2019.Itisexpectedthattheinterimfnancialreport willbedisclosedinEnglishontheCompany'swebsite from 2019 onward.
3.8	Hasthecompanyvoluntarilypublisheditsfnancial forecast for the four quarters? Have its relevant operationsbeencorrectedbythecompetent authorityoranydemeritsbeenimposedbythe Taiwan Stock Exchange Corporation or the GreTai Securities Market?	Under discussion
3.11	Does the company's annual report disclose future R&D plans and estimated costs?	Under discussion
3.12	Does the company's annual report disclose concrete andspecifcdividendpolicies?	Under discussion
3.18	Does the company have an English-language websitewithinformationonfnance,businessand corporate governance?	In2019,theCompanyhasestablisheditsEnglishwebsite, whichcontainsinformationaboutfinance,businessand corporate governance.

3.20	Hasthecompanybeeninvitedtoholdatleasttwo judicialpersonexplanatorysessions(onitsown), withtheintervalbetweenthefrstandlastsessions oftheyearunderreviewbeingmorethanthree months?	Since 2017, the company has held an annual judicial personexplanatorysessionasrequired.Thefeasibilityof holdingatleasttwosessionshasbeendiscussed.
4.2	Does the company have a full-time/part-time unit topromotecorporatesocialresponsibility(CSR) andbusinessintegrity,andexplainitsoperation and implementation in the annual report and on thecompanywebsite,andreporttotheboardof directors regularly?	The company has set up a CSRcommittee, which regularly reportstotheboardofdirectors.Thecompanyiscurrently discussing how to explain the committee's operation and implementation in the annual report and on the company website.
4.3	Does the company regularly disclose its CSR promotion plans and implementation results in its annualreportandonitswebsite?	Under discussion and planning
4.5	AreCSRreportspreparedbythecompany,which disclosenon-fnancialinformationofthecompany, verifedbythirdparties?	Under discussion and planning
4.14	Doesthecompanywebsiteorannualreportreveal the identity, concerns, communication channels and responsepatternsofidentifedstakeholders?	Under discussion and planning
4.15	Doesthecompany'swebsiteorannualreport disclose its integrity management policy, specify specifcpracticesandpreventdishonestbehavior?	The Company has disclosed its "Ethical Corporate ManagementBestPracticePrinciples"onitswebsitein 2020.
4.16	Does the company have a detailed system of reportingillegal(includingcorrupt)andimmoral actsbyinternalandexternalpersonnelonits website?	Under planning
4.17	Does the company have a supplier management policy that requires it to work with suppliers in accordance with relevant standards on environmental protection, safety or health issues in a joint effort to promote CSR, which is disclosed onthecompanywebsiteorCSRreport?	Under discussion and planning

Note 1:

�(1)�For�the�Company's�employee�rights�and�interests,�employee�care�please�refer�to��"V.In�I�On� Highlights5.Labor�Relations".

(2)�The�Company�shall�have�a�spokesman�and�a�unit�of�interest�in�investor�relations,�supplier� relations and the rights of interested parties, and may maintain them through the Company's network, telephone and fax.

(3)Director�and�Supervisor�2019�Further�Education

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Title Name Date Course Hrs
----- End of picture text -----

Title	Name	Date	Course	Hrs

Chairperson	Wen-Yuan Lin	2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatementsby directors and supervisors	3
Vice President	Cheng-Yuan Liu	2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatementsby directors and supervisors	3
Director	Chiung-Fen Wang	2019/05/13	Important legal issues of FinTech	3
		2019/08/12	Theprincipleandapplicationofartifcialintelligence	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatementsby directors and supervisors	3
Director	Jeff Chen	2019/05/09	Discussion on prevention and control of money laundering and legal compliance	3
		2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
Director	Sheng-Tsheng Lee	2019/05/14	Howdodirectorsandsupervisorswithnon-accountingbackground reviewfnancialreports	3
		2019/08/27	The impact of Company Act amendment on the internal audit and money laundering control of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatementsby directors and supervisors	3
Director	Kuo-Shui Chao	2019/06/26	A+enterprisexshareholdervalue	3
		2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatementsby directors and supervisors	3
Director	Chi-Yao Sun	2019/07/10	Enterprise strategy and key performance indicators	3
		2019/07/23	Theprincipleandapplicationofartifcialintelligence	3
Director	Po-Hao Huang	2019/07/30	Corporategovernancelecture(40thsession)	3
		2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/08/27	Corporategovernancelecture(47thsession)	3
		2019/09/10	Corporategovernancelecture(42ndsession)	3
		2019/12/03	Corporategovernancelecture(45thsession)	3
		2019/12/17	Corporategovernancelecture(52ndsession)	3
Independent Director	Chin-Chen Chien	2019/05/13	Important legal issues of FinTech	3
		2019/08/12	Theprincipleandapplicationofartifcialintelligence	3

Independent Director	Kao-Wei Hsu	2019/05/20	Analysis of the key points of "Securities and Exchange Act" and major violation cases	3
		2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatementsby directors and supervisors	3
Independent Director	Kuo-Ching Chang	2019/06/26	A+enterprisexshareholdervalue	3
		2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatementsby directors and supervisors	3

(4)Manager�and�auditor's�training�in�2019

Chairperson�Wen-Yuan�Lin�also�applicable�to�the�annual�training.

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Title Name Date Course Hrs
Analysis of coping measures for the implementation of the
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Title	Name	Date	Course	Hrs
			Analysis of coping measures for the implementation of the
General Manager/ Deputy General Manager	Pao-Yuan Chen	2019/08/08	latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatements bydirectorsandsupervisors	3
Sales Deputy General Manager	T.K Chung	2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatements bydirectorsandsupervisors	3
Financial Assistant Manager	Jason Choug	2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatements bydirectorsandsupervisors	3
		2019/12/12～ 2019/12/13	Continuing education courses for accounting officers of issuers,securitiesfrms,andsecuritiesexchanges	12
Investing Deputy CEO	Cheng-Hsin Lu	2019/08/08	Analysis of coping measures for the implementation of the latest company act amendment and practical operation of enterprises	3
		2019/10/31	Legalliabilityandriskcontroloffalsefnancialstatements bydirectorsandsupervisors	3
Chief Auditor	Yu-Ling Hsiao	2019/06/05	ROC Accounting Research and Development Foundation: Commonmissingfoundbyinternalaudit,legalliability and case analysis	6
		2019/10/01	ROC Internal Audit Association: Study of auditing practice of enterprise cost and value creation	6

(5)Implementation�of�risk�management�policies�and�risk�measurement�standards

The company has always adopted a preventive policy for risk management. In addition to the strict internal�control�system�formulated�by�the�company�according�to�law�and�the�implementation�situation� checked�and�verified�by�internal�auditing�at�regular�and�irregular�intervals,�the�company�also�takes�out� relevant�insurance�programs�such�as�property�insurance,�product�transportation�and�public�liability� insurance to avoid risk.

(6)Implementation�of�consumer�or�customer�protection�policies

In accordance with relevant laws and regulations, internal regulations are made for employees to carry out the�consumer�or�customer�first�policy.

(7)�The�company's�purchase�of�liability�insurance�for�directors�and�supervisors�and�its�social�responsibilities: The�directors�and�supervisors'�liability�insurance�coverage�in�2019�is�as�follows:�

Insured	Company	Coverage	Duration
Directors and supervisors	Tokio Marine Newa Insurance Co.,Ltd.	US$5,000,000	2020.4.22～2021.4.22

(4)�Composition,�Responsibilities�and�Operations�of�the�Remuneration�Committee

��The�Remuneration�Committee�assists�the�Board�in�discharging�its�responsibilities�relating�to�the�Company's� compensation�and�benefits�policies,�plans�and�programs,�and�the�evaluation�of�the�directors'�and�executives'� compensation.

1.Information�of�members�of�the�3[rd] committee.

��(1)Information�of�the�committee�members

Identity	Criteria Name	MeetsOneoftheFollowingProfessionalQualifcationRequirements,Together with at Least Five Years' Work Experience	MeetsOneoftheFollowingProfessionalQualifcationRequirements,Together with at Least Five Years' Work Experience	MeetsOneoftheFollowingProfessionalQualifcationRequirements,Together with at Least Five Years' Work Experience	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	Numberof OtherPublic Companies in Which the Individual is Concurrently Serving as an Remuneration Committee Member
		An instructor or higher position in a department ofcommerce,law,fnance, accounting, or other academic department relatedtothebusinessneeds oftheCompanyinapublic or private junior college, college or university	Ajudge,publicprosecutor, attorney,CertifedPublic Accountant, or other professional or technical specialist who has passed a national examination and beenawardedacertifcatein a profession necessary for thebusinessoftheCompany	Has work experience in the areas of commerce, law,fnance, or accounting, or otherwise necessary for the businessofthe Company	1	2	3	4	5	6	7	8
Independent Director	Kuo-Chin Chang			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Independent Director	Kuo-Shuai Chao	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1
Others	Dan-Liang Yao			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ

Note:�Please�tick�the�corresponding�boxes�that�apply�to�a�member�during�the�two�years�prior�to�being�elected�or�during�the�term(s)�of�office.

1.Not�an�employee�of�the�Company�or�any�of�its�affiliates.
2.�Not�a�director�or�supervisor�of�affiliated�companies.�Not�applicable�in�cases�where�the�person�is�an�independent�director�of�the�parent�company,�or� any�subsidiary�in�which�the�Company�holds,�directly�or�indirectly,�more�than�50%�of�the�voting�shares.
3.�Not�a�natural-person�shareholder�who�holds�shares,�together�with�those�held�by�the�person's�spouse,�minor�children,�or�held�by�the�person�under� others'�names,�in�an�aggregate�amount�of�1%�or�more�of�the�total�number�of�outstanding�shares�of�the�Company,�or�ranking�in�the�top�10�in� HOLDING.
Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the persons in the preceding three�sub-paragraphs.
5.�Not�a�director,�supervisor,�or�employee�of�a�corporate�shareholder�who�directly�holds�5%�or�more�of�the�total�number�of�outstanding�shares�of�the� Company,�or�who�holds�shares�ranking�in�the�top�five�HOLDING.
6.�Not�a�director,�supervisor,�officer,�or�shareholder�holding�5%�or�more�of�the�shares�of�a�specified�company�or�institution�which�has�a�financial�or� business�relationship�with�the�Company.
7.�Not�a�professional�individual,�who�is�an�owner,�partner,�director,�supervisor,�or�officer�of�a�sole�proprietorship,�partnership,�company,�or�institution� that�provides�commercial,�legal,�financial,�accounting�services�or�consultation�to�the�Company�or�to�any�affiliate�of�the�Company,�or�a�spouse� thereof.
8.Not�a�person�of�any�conditions�defined�in�Article�30�of�the�Company�Law.

(2)Attendance�of�Members�at�Remuneration�Committee�Meetings
(1)There�are�3�members�in�the�committee.
(2)�Term:�Apr.3,2016�to�Jan.30,2019.�A�total�of�4�(A)�Remuneration�Committee�meetings�were�held� in�the�previous�period.�The�attendance�record�of�the�Remuneration�Committee�members�was�as� follows:

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Title Name Attendance�in�Person(B) By Proxy Attendance�Rate�(%)【Ｂ/Ａ】 Remarks
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Title	Name	AttendanceinPerson(B)	By Proxy	AttendanceRate(%)【Ｂ/Ａ】

Convener	Kuo-Chin Chang	4	0	100%
Committee	Kuo-Shuai Chao	4	0	100%
Member	Dan-Liang Yao	4	0	100%

2.�Information�of�members�of�the�4[th] committee.

(1)Member�information

Identity	Criteria Name	MeetsOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years' Work Experience	MeetsOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years' Work Experience	MeetsOneoftheFollowingProfessionalQualifcation Requirements, Together with at Least Five Years' Work Experience	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	IndependenceCriteria(Note1)	Numberof OtherPublic Companies in Which the Individual is Concurrently Serving as an Remuneration Committee Member
		An instructor or higher position in a department of commerce, law, fnance,accounting, or other academic department related tothebusinessneeds of the Company in a publicorprivatejunior college, college or university	Ajudge,public prosecutor, attorney, CertifedPublic Accountant, or other professional or technical specialist who has passed a national examination andbeenawardeda certifcateinaprofession necessary for the businessoftheCompany	Has work experience in the areas of commerce, law,fnance, or accounting, or otherwise necessary for thebusinessof the Company	1	2	3	4	5	6	7	8
Independent Director	JIn-Cheng Chien	ˇ		ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Independent Director	Kao-Wei Hsu			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ
Independent Director	Kuo-Chin Chang			ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	ˇ	1

Note:�Please�tick�the�corresponding�boxes�that�apply�to�a�member�during�the�two�years�prior�to�being�elected�or�during�the�term(s)�of�office.

1.Not�an�employee�of�the�Company�or�any�of�its�affiliates.
2.�Not�a�director�or�supervisor�of�affiliated�companies.�Not�applicable�in�cases�where�the�person�is�an�independent�director�of�the� parent�company,�or�any�subsidiary�in�which�the�Company�holds,�directly�or�indirectly,�more�than�50%�of�the�voting�shares.
3.�Not�a�natural-person�shareholder�who�holds�shares,�together�with�those�held�by�the�person's�spouse,�minor�children,�or�held�by�the� person�under�others'�names,�in�an�aggregate�amount�of�1%�or�more�of�the�total�number�of�outstanding�shares�of�the�Company,�or� ranking in the top 10 in HOLDING.
Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the persons�in�the�preceding�three�sub-paragraphs.
5.�Not�a�director,�supervisor,�or�employee�of�a�corporate�shareholder�who�directly�holds�5%�or�more�of�the�total�number�of� outstanding�shares�of�the�Company,�or�who�holds�shares�ranking�in�the�top�five�HOLDING.
6.�Not�a�director,�supervisor,�officer,�or�shareholder�holding�5%�or�more�of�the�shares�of�a�specified�company�or�institution�which�has� a�financial�or�business�relationship�with�the�Company.
Not a professional individual, who is an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company,�or�institution�that�provides�commercial,�legal,�financial,�accounting�services�or�consultation�to�the�Company�or�to�any� affiliate�of�the�Company,�or�a�spouse�thereof.
8.Not�a�person�of�any�conditions�defined�in�Article�30�of�the�Company�Law.

(2)Attendance�of�Members�at�Remuneration�Committee�Meetings
(1)There�are�3�members�in�the�committee.
(2)�Term:�Jan.31,2019�to�Jan.30,2022.�A�total�of�6�(A)�Remuneration�Committee�meetings�were�held�in�the� previous�period.�The�attendance�record�of�the�Remuneration�Committee�members�was�as�follows:

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Title Name Attendance�in�Person(B) By Proxy Attendance�Rate�(%)【Ｂ/Ａ】 Remarks
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Title	Name	AttendanceinPerson(B)	By Proxy	AttendanceRate(%)【Ｂ/Ａ】

Convener	Chin-Chen Chien	6	0	100%
CommitteeMember	Kao-Wei Hsu	6	0	100%
CommitteeMember	Kuo-Ching Chang	6	0	100%

3. Other notes:

1)�If�the�board�of�directors�will�decline�to�adopt,�or�will�modify,�a�recommendation�of�the�remuneration�committee,� it�shall�state�the�board�meeting�date,�session,�agenda�items,�the�resolution,�and�the�company's�handling�of�the� opinions�of�the�remuneration�committee�(If�the�remuneration�passed�by�the�board�meeting�is�more�favorable� than�recommended�by�the�remuneration�committee,�the�circumstances�and�cause�for�the�difference�shall�be� specified):�No�such�case.
��2)�If�with�respect�to�any�resolution�of�the�remuneration�committee,�any�member�has�a�dissenting�or�qualified� opinion that is on record or stated in a written statement, the remuneration committee meeting date, session, agenda�items,�all�members'�opinions,�and�the�handling�thereof�shall�be�stated:�no�such�case.
��3)�Official�powers�of�the�remuneration�committee
�The�committee�shall�exercise�the�due�care�of�a�good�administrator�in�conducting�its�duties�and�submit�its� suggestions�to�the�board�of�directors�meeting�for�deliberation
Formulating and regularly reviewing policies, systems, standards and structures for performance evaluation and�remuneration�of�directors�and�managerial�officers.
��2.Regular�assessment�and�determination�of�the�remuneration�of�directors�and�managerial�officers.
��3.Other�matters�as�referred�to�by�the�board�of�directors�for�resolution.

��4)�Discussions�and�resolutions�of�the�remuneration�committee�and�the�company's�handling�of�members'�opinions:

Meeting date	Agenda	Resolution	Opinion
2019/01/02 (1sttimein2019)	To amend the Company's "Organizational Procedures for Remuneration Committees", "Supervisors' Horse/Attendance Fees/Remuneration / Payment Standards", "Measures for the Evaluation of Performance of Supervisors and Managers" and "Employee Compensation Payment Measures"	Assent and consent	None
2019/02/20 (2ndtimein2019)	Preparation of the Company's Chief Executive Officer, Vice Chairperson, General Manager Salary	Assent and consent	None
2019/03/11 (3rdtimein2019)	The Company's 2018 Directors' Remuneration and Employee Compensation DistributionCase	Assent and consent	None
2019/04/01 (4thtimein2019)	Amendment of the Director's Horse/Attendance Fee/Remuneration Standards	Assent and consent	None
2019/12/24 (5thtimein2019)	Bonus Payment Case、Director and Manager Performance Assessment	Assent and consent	None
2020/03/11 (1sttimein2020)	The Company's 2019 Directors' Remuneration and Employee Compensation DistributionCase	Assent and consent	None

�(5)�Corporate�Social�Responsibility

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles
Y N Abstract�Explanation for TWSE/TPEx
Listed Companies"
and Reasons
1. Corporate Governance Compliance with
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Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
1. Corporate Governance				Compliance with
Implementation (1)Doesthecompanydeclare i t s c o r p o r a t e s o c i a l responsibilitypolicyand examine the results of the implementation? (2)Doesthecompanyprovide e d u c a t i o n a l t r a i n i n g o n c o r p o r a t e s o c i a l responsibilityonaregular basis? (3)D o e s t h e c o m p a n y establishexclusively(or concurrently)dedicated f i r s t - l i n e m a n a g e r s authorizedbytheboardto beinchargeofproposing t h e c o r p o r a t e s o c i a l responsibilitypoliciesand reportingtotheboard? (4)Doesthecompanydeclare a r e a s o n a b l e s a l a r y remuneration policy, and integrate the employee performance appraisal system with its corporate s o c i a l r e s p o n s i b i l i t y policy,aswellasestablish an effective reward and disciplinarysystem?	V V V V		1)In2016,theCompanyestablishedtheCorporateSocial ResponsibilityPromotionGrouptoformulatecorporate social policies. The Company has formulated the organizationalrulesoftheCSRCommittee,andestablished theCorporateSocialResponsibilityPromotionGroupat theendof2017toberesponsiblefortheplanningofCSR objectivesandthereviewoftheimplementationeffect. 2)Socialresponsibilitytraininghasbeenheld,butnotona regularbasis. 3)TheCompanyestablishedtheCorporateSocial ResponsibilityPromotionGroupin2016,withthePresident and the top executive of each department as the conveners. Atpresent,theCompanyisworkingontheestablishmentof the organizational rules of the CSR Committee, and has set up the CSR Committee at the end of 2017. The chairman of theCSRcommitteereportstotheboardofdirectorsatleast twice a year. 4)Thecompanyformulatesthe"AnnualEmployee Performance Appraisal Procedure" to evaluate the performance of employees in the year of performance appraisal, and through the appraisal process to assist employeestoimprovetheirabilities,soastoserveasthe basisforsalaryadjustment,promotionandyear-endbonus payment in the future.	related regulations.

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles
Y N Abstract�Explanation for TWSE/TPEx
Listed Companies"
and Reasons
2.�Sustainable�Environment� Compliance with
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Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
2.SustainableEnvironment				Compliance with
Development (1)Doesthecompanyendeavor to utilize all resources more efficiently and use renewablematerialswhich have low impact on the environment? (2)Doesthecompanyestablish proper environmental managementsystemsbased on the characteristics of their industries?	V V		1)Reducingtheconsumptionofrawmaterialsandenergy, boostingproductionefficiency,andusingrenewable materialsandbio-fuelsarethepremiseforthecompanyto pursue profits and reduce the impact on the environment. Underthispremise,thecompanyhasbeenconducting meetings,discussionsandHAZOPanalysisontheabove issues, and has achieved concrete results. In 2019, in response to reducing the impact on climate changeandmaintainingasustainableenvironment,the Companywillcompleteanumberofemissionreduction programs, such as heat recycling in the convection zone and replacing fuel oil with natural gas. 2)"Theconceptofsustainablemanagementandcontinuous improvement"isourbusinessphilosophy.In1997,the companyobtainedthecertificationofISO-14001from BVC Co. and implemented environmental management in accordance with its management system. In view of the importance of the concept of safety, health and environment protection and management system taking rootdownstream,thecompanywasafoundingmemberof theTaiwanResponsibleCareAssociation(TRCA)thatwas set up in 1998, and completed relevant work according to its regulations every year, such as safety and environment protection performance index survey, self-evaluation of six management standards; promotion of safety and health/ environmental management system: ISO 14001, ISO 14064, ISO9001,OHSAS18001,CNS15506certifcation,annual follow-up review, and continuous improvement. Occupational environmental monitoring: (1)Accordingtotheworkingenvironmentmonitoringplan, the monitoring results show the operating environment andlaborexposureconditions,andapplytheresultsto engineering control, education and training, protective gear selection, risk assessment, health promotion and other work.	related regulations.

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles
Y N Abstract�Explanation for TWSE/TPEx
Listed Companies"
and Reasons
(2)�A�continuous�automatic�monitoring�and�alarm�system�
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Evaluation Item	Implementation Status	Implementation Status	Implementation Status
	Y	N	AbstractExplanation
			(2)Acontinuousautomaticmonitoringandalarmsystem
(3)Doesthecompanymonitor the impact of climate change on its operations and conduct greenhouse gas inspections, as well asestablishcompany strategies for energy conservationandcarbon reduction?	V		(includingcombustiblegasmonitoring,benzenegas monitoring,wastewatermonitoring,fuegasmonitoring) conducts monitoring 24 hours a day. The control room can control the pollution discharge status at any time, andimmediatelyconfirmanddealwiththeabnormal display to avoid the spread of pollution. With the conceptofabidingbylawsandregulations,preventing pollution,reducingrisks,safeproductionandsustainable management, the company protects the environment, safety and health of employees, contractors and the generalpublic,andfulfllsitssocialresponsibilities. 3) 1. Greenhouse Gas Checking A. The Greenhouse Gas Reduction and Management Act passed the third reading at the Legislative Yuan on June 15, 2015, and was promulgated on July 1 the same year. According to the act, the long-term national greenhousegas(GHG)emissionreductiongoalshall betoreduceGHGemissionstonomorethan50%of 2005GHGemissionby2050.Thegoalpursuanttothe foregoingParagraphshallbetimelyadjustedbythe central competent authority, in consultation with the centralindustrycompetentauthorities,bytakinginto consideration the United Nations Framework Convention onClimateChange(UNFCCC),itsagreementsor related international conventions decisions, together with domesticcircumstances,subjecttotheExecutiveYuan's approval; and in line with the required periodical review. GHGreductionhasbecomeaglobalissueofconcern. Asamemberoftheglobalvillage,thecompanycannot shirkitsresponsibilities.Onlythroughcontinuousprocess improvement, reduction of energy consumption, search for alternative fuels and use of efficient equipment can we meet the Environmental Protection Administration's (EPA)reductiontargets. The company's Kaohsiung plant energy conservation andcarbonreductionandgreenhousegasinventoryand reduction are as follows:

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles
Y N Abstract�Explanation for TWSE/TPEx
Listed Companies"
and Reasons
(A)�Since�2005,�the�company�has�accepted�the�"GHG� Compliance with
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Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
Y	N	AbstractExplanation
		(A)Since2005,thecompanyhasacceptedthe"GHG	Compliance with
		inventory and cleaner production guidance" program from Unitech Engineering CO., Ltd., and conducted GHGinventoryaccordingtotheguidanceyearbyyear, andregisteredthedataonthewebsiteoftheIndustrial Development Bureau. The GHG emission inventory hasbeenestablishedsince2005. (B)InJune2008,thecompanyforwardedtheGHG emission data previously registered on the Industrial DevelopmentBureauwebsitetotheEPA'sNational Greenhouse Gas Platform. (C)Startingfrom2015,inaccordancewiththeEPA- announced Regulations on Management of Greenhouse Gas Emissions Inventory and Registration and ISO 14064 international standard for GHG emissions, a factory-wideemissioninventoryhasbeenconducted, whichisverifiedbyanimpartialthird-party certificationentityaccreditedbytheEPA,withthe emission inventory and report, verification statement and summary report uploaded to the National Greenhouse Gas Platform. The operation is conducted once a year. B. In order to effectively manage the GHG inventory, the company on August 31, 2015 issued the "Greenhouse Gas InventoryManagementOperationalProcedure"(KE-80- 06),andcarriedoutsuchoperationsasinventory,data collection, emission calculation, verification, emission inventory and inventory report. 2.EnergySavingandCarbonReductionStrategy A. In alignment with government policies, TSMC Co. continues to improve its manufacturing process, reduce energy consumption, seek alternative fuels and adopt high-effciencyequipmentinresponsetotheglobaltrend ofcarbonreduction. B. In 2018, the company responded of its own accord to the summerpower-savingandlight-offactivitiesstagedby theKaohsiungenvironmentalprotectionbureauandthe inter-departmental GHG reduction actions to fulfill its socialresponsibilitiesandcontributetothesustainable development of the environment.	related regulations.

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles
Y N Abstract�Explanation for TWSE/TPEx
Listed Companies"
and Reasons
C. In 2019, the Company completed the transformation of
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Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
			C. In 2019, the Company completed the transformation of
			fuel oil equipment to natural gas equipment and waste heat recycling to reduce the impact on climate change. D. In 2019, the Company assessed the introduction of green energyinresponsetorenewableenergydevelopment regulations.
3.PreservingPublicWelfare (1)D o e s t h e c o m p a n y formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights? (2)Hasthecompanysetup an employee hotline or grievance mechanism to handle complaints with appropriate solutions? (3)Doesthecompanyprovide a healthy and safe working environment and organize training on health and safety for its employees on aregularbasis?	V V V		(1)Inadditiontocomplyingwiththelaborlaw,theCompany hasbetterwelfaremeasuresthantheLaborStandardsAct (2)TheCompanyhassetupagrievancemailboxtoserveas the employee complaint mechanism and channel. (3)ThecompanyadoptsU.S.Badger's"LowPollution,Energy Saving, High Efficiency, High Safety" process from its source; regularly implements HAZOP meeting to identify potential hazards and improve them; regularly conducts 5S activities to maintain clean and tidy environment; regularly holds safety and health meetings to propose improvement programs;performsdailyinspectionsbysafetyandhealth personnel to detect shortcomings and immediately correct them; carries out automatic inspection systems; performs work safety permit systems; organizes environmental safety and health educational training; undertakes operation environment inspection; regularly arranges staff health checkups;establishesstandardoperatingprocedures;and performs work, audits and makes continual improvements in accordance with the ISO system. To effectively raise all employees' awareness of occupational safety and health, and to reduce the risk of work injury and factory hazards, The Company also regularly arranges staff health examination and safetyrelated training.	Compliance with related regulations.

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles
Y N Abstract�Explanation for TWSE/TPEx
Listed Companies"
and Reasons
(4)�Does�the�company�setup� V (4)The�Company�holds�labor�and�capital�meetings�on�a�regular� Compliance with
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Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
(4)Doesthecompanysetup	V		(4)TheCompanyholdslaborandcapitalmeetingsonaregular	Compliance with
a communication channel with employees on a regular basis,aswellasreasonably inform employees of any significant changes in operations that may have an impact on them? (5)Doesthecompanyprovide its employees with career development and training sessions? (6)Doesthecompanyestablish any consumer protection mechanisms and appealing procedures regarding research development, purchasing, producing, operating and service? (7)Doesthecompanyadvertise andlabelitsgoodsand services according to relevant regulations and international standards? (8)Doesthecompanyevaluate the records of suppliers' impact on the environment andsocietybeforetaking onbusinesspartnerships? (9)Dothecontractsbetween t h e c o m p a n y a n d i t s major suppliers include t e r m i n a t i o n c l a u s e s which come into force oncethesuppliersbreach t h e c o r p o r a t e s o c i a l responsibilitypolicyand causeappreciableimpact on the environment and society?	V V V V	V	basisasaregularcommunicationchannelforemployees. (5)TheCompanyhasestablishedthe"KaohsiungFactoryStaff TrainingManagementProcedures"toestablishaneffective career development training program for staff knowledge and skills. (6)TheCompanyattachesgreatimportancetocustomerafter- sales service, and regularly surveys customer satisfaction; inaddition,wehaveanumberofcustomergrievance channels such as e-mail and standard operation procedures for customer complaint handling. We will respond to customers'commentsassoonaspossible. (7)Themarketingandlabelingofourproductsandservicesare in accordance with relevant domestic laws and international standards. (8)Thecompanywillpaycloseattentiontotherelated information of the major domestic suppliers, and attend the meeting on the company's major events, and report and discuss at the company's internal meeting. (9)Thecompanywillcontinuetocarefullyassesssuppliersthat haveasignifcantimpactontheenvironmentandsociety.	related regulations.

Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
4. Enhancing Information Disclosure (1)Doesthecompanydisclose relevantandreliable information regarding i t s c o r p o r a t e s o c i a l responsibilityonitswebsite andtheMarketObservation PostSystem(MOPS)?	V		The Company has completed the preparation of corporate socialresponsibilityreportanddisclosedrelevantinformation yearbyyearsince2017.	Compliance with related regulations.

Where a company has its own code of practice for CSR in accordance with the Code of Practice for CSR
of�Exchange-Listed�and�OTC-Listed�Companies,�please�state�the�discrepancy�between�its�operation�and�the� code:

The�company's�Code�of�Practice�for�CSR�is�based�on�the�Code�of�Practice�for�CSR�of�Exchange-Listed�and� OTC-Listed�Companies.�The�spirit�of�the�former�code�is�comparable�to�that�of�the�latter,�but�the�former�has� been�slightly�adjusted�according�to�the�company's�practice.�For�the�operation�of�CSR�in�the�company,�please� refer to the contents of its CSR report.

6.�Other�important�information�contributing�to�the�understanding�of�the�operation�of�CSR�(e.g.�the�system,� measures�and�performance�of�environmental�protection,�community�participation,�social�contribution,�social� service,�public�welfare,�consumer�rights,�human�rights,�safety�and�health�and�other�social�responsibility� activities�adopted�by�the�company):
1)�Environmental�protection�and�occupational�safety

While�pursuing�the�sustainable�business,�the�company�still�closely�combines�the�concept�of�environmental� protection�and�safety�first,�and�implements�social�responsibility,�so�that�enterprises�and�the�environment� coexist and prosper.

In pursuit of the goal of "zero pollution," "zero accident," and "zero injury," the company aims to protect the�environment,�safety�and�health�of�employees,�contractors�and�the�general�public�by�abiding�by�laws� and�regulations,�preventing�pollution,�reducing�risks,�safe�production�and�sustainable�management.� Accordingly,�the�company�undertakes�to�observe�the�following�seven�codes�of�conduct:

(1)�All�business�and�production�activities�must�comply�with�the�government's�environmental�protection,� safety and health laws and other relevant requirements.
(2)�Ensuring�the�safety�and�health�of�the�work�environment�is�the�right�and�responsibility�of�all�employees.
(3)�Efforts�are�made�to�improve�the�working�environment�in�order�to�avoid�safety�and�health�accidents.
(4)�Pollution�prevention�is�strengthened�and�continuous�energy�conservation�and�waste�reduction�are� carried�out�to�minimize�the�environmental�pollution�caused�by�various�activities.

(5)�Environmental�and�health�education�and�training�is�promoted�to�improve�the�awareness�and�skills�of� employees and contractors.
(6)�Automatic�inspections�and�audit�systems�are�implemented�to�continuously�improve�and�enhance� environmental, safety and health performance.
(7)�The�environmental,�safety�and�health�management�is�integrated�into�the�management�system�and�daily� work, so as to put the idea into practice.
��2)�Community�relations

In�collaboration�with�manufacturers�in�industrial�zones,�the�company�offers�good-neighborly�funds� annually�for�cultural,�public�welfare�events�and�student�grants�in�neighboring�communities,�and�actively� participates in arts, culture, sports and environmental activities in communities.

3)�Public�welfare

Over�the�years,�the�company�has�been�dedicated�itself�to�giving�back�to�society.�Whenever�there�are� natural disasters in the nation, it donates money to assist with disaster relief, repeated praises were received from the government.

7.�Where�the�CSR�report�of�a�company�has�passed�the�verification�criteria�of�the�relevant�certification�bodies,�it� shall�be�stated.
��At�present,�the�CSR�report�has�not�been�verified�by�relevant�certification�organizations.

(6)Ethical�Corporate�Management�status�and�implementation�of�the�Company

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles for
Y N Abstract�Explanation TWSE/TPEx Listed
Companies" and
Reasons
1.�Establishment�of�ethical�corporate� Compliance with related
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Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
1.Establishmentofethicalcorporate				Compliance with related
management policies and programs (1)Doesthecompanydeclareits ethical corporate management policies and procedures in its guidelines and external documents, as well as the commitmentfromitsboardto implement the policies? (2)Doesthecompanyestablish policies to prevent unethical conduct with clear statements regarding relevant procedures, guidelines of conduct, punishment for violation, rules of appeal, and the commitment to implement the policies?	V V		Honesty and integrity is the most important businesspillarofourcompany,andalsotheprimary employment requirements. It is used to gain the trust and respect from customers, shareholders, employees, supplier partners and society. The company has establishedacodeofintegritymanagement. The company formulates a plan to prevent dishonest conduct in its work rules and regularly organizes ethical education training and promotion for directors and employees. Directors, managerial officers and employees shall perform their duties honestly in accordance with regulations and internal rules and procedures concerning the Securities and Exchange Act, the Company Act, the Business Entity AccountingActorotherbusinesspractices.	regulations.

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles for
Y N Abstract�Explanation TWSE/TPEx Listed
Companies" and
Reasons
(3)�Does�the�company�establish� V The company usually strengthens employees'
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Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
(3)Doesthecompanyestablish	V		The company usually strengthens employees'
appropriate precautions against high-potential unethical conducts or listed activities stated in Article 2, Paragraph 7 of the Ethical Corporate Management Best- Practice Principles for TWSE/ TPEx Listed Companies?			integrity through employee values and core functions, and deeply roots the core concept of employees' work rules in mind, and accordingly performs work dutiesonbehalfofthecompanytopreventdishonest behavior.
2.Fulflloperationsintegritypolicy (1)Doesthecompanyevaluate businesspartners'ethicalrecords and include ethics-related clauses inbusinesscontracts? (2)Doesthecompanyestablishan exclusively(orconcurrently) dedicatedunitsupervisedbythe Boardtobeinchargeofcorporate integrity? (3)Doesthecompanyestablish policies to prevent conflicts of interest and provide appropriate communication channels, and implement it? (4)Hasthecompanyestablished effectivesystemsforboth accounting and internal control to facilitate ethical corporate management, and are they audited byeitherinternalauditorsorCPAs onaregularbasis? (5)Doesthecompanyregularlyhold internal and external educational trainings on operational integrity?	V V V V V		Thecompanyprescribestheworkingrulesof employees,affectsthebusinessphilosophyof customers with an honest attitude, offer quality servicebeyondcontractualagreements,andtakesthe responsibilityofperforminghonesttransactionsto customers. In addition to avoiding transactions with persons who have engaged in dishonest conduct, the businesscontractwillstipulatethatthepartiesshall conduct transactions in good faith. The company's specific practices of managing and controlling integrity management are to clearly regulatetheworkresponsibilities,strengthenstaff assessment, regularly check the main operations and projects of the organization through auditing units, andrequiremanagementtosubmitbusinessreports totheboardofdirectors. The company's Independent Director review the audit reportregularlytounderstandtheconfictsofinterest of the company and maintain smooth communication channels with interested parties. Thecompany'sinternalauditorsareresponsiblefor regularly and irregularly carrying out the audit of the company's operating results, and presenting the audit report to the chairman, general manager and supervisors, while the company's management must improvetheoperationalmanagementdefciencies. Every year, the company invites directors and managerial officers to attend refresher courses organizedbytheSecurities&FuturesInstitutefor external education and training.	Compliance with related regulations.

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Implementation Status Deviations from "the
Corporate Social
Responsibility�Best-
Evaluation Item Practice Principles for
Y N Abstract�Explanation TWSE/TPEx Listed
Companies" and
Reasons
3.Operation of the integrity channel Compliance with related
----- End of picture text -----

Evaluation Item	Implementation Status	Implementation Status	Implementation Status	Deviations from "the Corporate Social ResponsibilityBest- Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Y	N	AbstractExplanation
3.Operation of the integrity channel				Compliance with related
(1)Doesthecompanyestablishbotha reward/punishment system and an integrity hotline? Can the accused bereachedbyanappropriate person for follow-up? (2)Doesthecompanyestablish standard operating procedures for confidential reporting on investigating accusation cases? (3)Doesthecompanyprovideproper whistleblowerprotection?	V V V		In addition to the company's integrity management code and staff working rules, the company does implement the relevant regulations to prevent conflicts of interest and violation of the good faith businessrulesanditsemployeesmayflecomplaints with their direct Independent directors, personnel unitsorwrittencomplaintboxesatanytime. Complaint line: 02-23414413; complaint fax: 02- 23960755;complaintmailboxorcomplaintemail: [email protected]	regulations.
4. Strengthening information disclosure (1)Doesthecompanydiscloseits ethical corporate management policies and the results of its implementation on the company's websiteandMOPS?	V		The company discloses information related to the company'scodeofconductintheMarketObservation PostSystemandonitswebsite,andestablishesand implements the company's spokesperson and acting spokesperson system.	Compliance with related regulations.

(7)�Where�a�company�has�its�own�code�of�integrity�management�in�accordance�with�the�Code� of Integrity Management for Exchange-Listed and OTC-Listed Companies, please state the differences�between�its�operation�and�the�code:

The company has formulated and implemented the "Code of Integrity Management for Exchange-Listed and OTC-Listed Companies."

(8)�Other�important�information�contributing�to�the�understanding�of�the�company's�integrity� operation:

The�company�adheres�to�the�spirit�of�honest�management,�abides�by�the�Company�Act,�Securities�and� Exchange Act and other laws and regulations, and promotes the implementation of honest management policies�by�the�contractors,�directors,�managerial�officers�and�personnel,�so�as�to�make�the�company�develop� towards�the�concept�of�sustainable�management.

(9)Internal�Control�Status
1.Internal Control:

Taiwan Styrene Monomer Corporation Internal Control Declaration

Mar.11, 2020

The�company's�internal�control�system�for�2019,�based�on�the�results�of�self-assessment,�hereby�states�as�follows:

1.�The�company�recognizes�that�it�is�the�responsibility�of�the�board�of�directors�and�managerial�officers�of�the�company� to�establish,�implement�and�maintain�the�internal�control�system,�and�the�company�has�set�up�such�a�system�to� provide�reasonable�assurance�of�operational�effectiveness�and�efficiency�(including�profit,�performance�and�safety�of� assets),�report�reliability,�timeliness,�transparency�and�compliance�with�relevant�codes�and�regulations.
An internal control system has its inherent limitations. No matter how perfect the design is, an effective internal control�system�can�only�provide�reasonable�assurance�for�the�achievement�of�the�above�three�objectives.�Moreover,� the effectiveness of the internal control system may vary with the environment and situation. However, the company's internal�control�system�has�a�self-monitoring�mechanism.�Once�the�deficiencies�are�identified,�the�company�will�take� corrective action.
The company judges whether the design and implementation of the internal control system are effective or not according to the criteria for the effectiveness of the internal control system as stipulated in the Regulations Governing Establishment�of�Internal�Control�Systems�by�Public�Companies�(the�Regulations).�The�internal�control�system� criteria�adopted�in�the�Regulations�is�to�classify�the�system�into�five�elements�according�to�the�process�of�management� control:�1)�control�environment;�2)�risk�assessment;�3)�control�activities;�4)�information�and�communications,�and� 5)�supervision�activities.�Each�element�also�includes�several�items.�For�the�foregoing�items,�please�refer�to�the� provisions of the Regulations.
4.�The�company�has�adopted�the�above�internal�control�system�criteria�to�evaluate�the�effectiveness�of�the�design�and� implementation of the internal control system.
Based on the results of the foregoing assessment, the company considers that the design and implementation of its�internal�control�system�(including�supervision�and�management�of�its�subsidiaries)�as�of�December�31,�2019,� including�the�understanding�of�the�effectiveness�of�operations�and�the�extent�to�which�efficiency�objectives�have� been�achieved,�report�reliability,�timeliness,�transparency�and�compliance�with�relevant�codes�and�regulations,�are� effective,�and�can�reasonably�ensure�the�achievement�of�the�above�goals.
6.�This�Statement�will�constitute�the�main�content�of�the�company's�annual�report�and�public�statement�and�be�made� public.�If�any�of�the�contents�disclosed�above�is�found�to�be�false,�have�concealment�or�other�illegal�matters,�it�will� involve�legal�liabilities�under�Articles�20,�32,�171�and�174�of�the�Securities�and�Exchange�Act.
7.�This�Statement�was�approved�by�the�board�of�directors�meeting�on�March�11,�2020.�None�of�the�10�directors�present� had�any�objection�and�they�all�agreed�to�the�contents�of�this�Statement.

Taiwan Styrene Monomer Corporation

Chairperson:

General Manager:

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2.�Where�a�CPA�has�been�hired�to�carry�out�a�special�audit�of�the�internal�control�system,�the�CPA�audit� report�shall�be�furnished:no�CPA�was�hired�in�2018�to�carry�out�a�special�audit.
(10)�Any�legal�sanctions�against�the�company�or�its�internal�personnel,�or�any�disciplinary�action� taken�by�the�company�against�its�own�personnel�for�violation�of�internal�controls,�during�the� most�recent�fiscal�year�or�during�the�current�fiscal�year�up�to�the�date�of�publication�of�the� annual report; and a description of the main shortcomings in the company's internal control system as well as an indication of measures for improvement: No such case.
(11)�Material�resolutions�of�a�shareholders�meeting�or�a�board�of�directors�meeting�in�2018�up�to� the�date�of�publication�of�the�annual�report.
Important resolutions and implementation of the 2019-year regular session of shareholders of the Republic�of�China:
(1)�matters�to�be�reported
‧2018Annual Business Report
‧Supervisor�review�of�the�2018�annual�final�statement�report
‧2018�annual�employee�compensation�and�supervisor's�remuneration�distribution�report
‧Director's�Meeting�Specification�Revision�Report
(2)�Approval�matters
‧2018 Annual Business Report and Financial Report Recognition
‧2018�Annual�Surplus�Distribution�Recognition
(3)�Discussion�matters
‧Procedures for Acquisition or Disposal of Assets Discussion
‧Operational Procedures for Loaning Funds to Others Discussion
‧Management of Endorsement and Guarantees Discussion
‧Procedures for Election of Directors and supervisors Discussion

3.Resolutions

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Meeting time Resolutions
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Meeting time

Resolutions

2019/01/02
(1sttimein2019)

1. Review the Company's Jan. 31, 2019 Nomination director for the 11th interim shareholders' meeting
in2019(includingIndependentdirectorListofcandidates
2.JoinAsiaCarbonsandTechnologyInc.Cashcapitalincrease
3.TheCompanyintendstoshort-termfundsloanswithAsiaCarbonsandTechnologyInc.Case
4. To amend the Company's Code of Good Faith Practice, "Applying for suspension and resumption of
trading practices", "Guidelines for the Prevention of Insider Trading Management", "Organization
Procedures for the Remuneration Committee", "Regulations for the Management of Boards of
Directors/Attendance Fees/Remuneration", "Endorsement Guarantee Operating Procedures", "Fund
Loans and Others Operating Procedures", "" Measures for the Performance Evaluation of Supervisors
and Managers, "Procedures for the Acquisition or Disposition of Assets", "Internal Procedures for the
Processing of Material Information", "Director and Supervisor Election Measures", "" Management
of the Financial Statement Preparation Process, "Accounting Professional Judgment Procedures,
ProcessforAccountingPoliciesandEstimatedChanges","IndependentDirector'sResponsibility
Category Rules", "Director Conference Rules and "Employee Dividend Payment Measures"
5.Jan. 31, 2019Shareholders' Provisional Meeting Venue Change Case
6.InJan.31,2019themeetingplaceoftheInterimShareholders'Meetingwasscheduledtobeheldin
theTaibenKaohsiungForestParkFactoryAuditorium

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Meeting time Resolutions
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Meeting time	Resolutions

2019/01/09 (2ndtimein2019)	1.The day-to-day amendment of the Proposal of the Company's Measures 2.Personnel penalty cases
2019/01/24 (3rdtimein2019)	1. The case of the administrative measures for the printing and management of the seal of Taiwan Styrene Co., Ltd.
2019/01/31 (4thtimein2019)	1.AppointmentoftheChiefExecutiveOffcer 2.Appointment of Vice Chairperson 3.Appointment of General Manager
2019/02/20 (5thtimein2019)	1.AppointmentofmembersoftheCompany'sPayandCompensationCommission 2. Case concerning the assignment of the Legal Representative of the Director of the Company of YushengDevelopmentCo.,Ltd.anditsChairpersonby-election 3.ReassignmentofthelegalrepresentativeoftheCompany'ssubsidiariesandrelatedenterprises
2019/03/11 (6thtimein2019)	1.TheCompany's2018consolidatedandindividualfnancialreport 2.TheCompany's2018surplusdistributioncase 3. During and where the Company's 2019 general meeting of shareholders will accept the shareholders' proposal 4. The Company plans to hold its annual shareholders' meeting at 9:30 a.m. on Friday, June 28, 108, if theCompany'sKaohsiungPlant(No.7oftheIndustrialRoadofKaohsiungLinPark) 5.TheCompany's2018DirectorCompensationandEmployeeCompensationDistributionCase 6.DrafttheCompany'sChiefExecutiveOffcer,ViceChairperson,GeneralManagerSalary 7.ProposedtoamendtheCompany's"ReinvestmentEntitiesManagementMeasures"and"Subsidiary Supervision and Management Measures" 8. Asian graphene shares company and Yangmingshan Tianqi Art Village Development Company to dissolve and handle liquidation procedures 9.GVISION-USA,INC,affliatedwiththeCompanytohandlecashcapitalincrease 10.ParticipationinAsiaCarbonsandTechnologyInc.capitalincrease 11.TheCompanyintendstoshort-termfundsloanswithAsiaCarbonsandTechnologyInc. 12.Company's 2018 self-assessment operation report and statement on internal control system
2019/04/01 (7thtimein2019)	1.ReplacementoftheaccountingfrmandvisaaccountantoftheCompany 2.To amend the Company's Director Meeting Code 3.CompensationadjustmentoftheCompany'sremunerationcommitteemembers
2019/05/07 (8thtimein2019)	1.ConsolidatedFinancialReportfortheFirstQuarterof108 2.LeiTingConstructionInc.,asubsidiaryoftheCompany.andJinshuoEngineeringInc.toproceed with merger 3.ItisproposedtodisposeofTaiwanUnitedMedicalInc.,whichisheldbytheCompany.Equitycase

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Meeting time Resolutions
1.Consolidated�financial�statements�of�the�Company�in�the�second�quarter�of�2019.
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Meeting time	Resolutions
	1.ConsolidatedfnancialstatementsoftheCompanyinthesecondquarterof2019.
2019/08/08 (9thtimein2019)	2.Signing working capital loan contract with Taiwan Business Bank, South Taipei Branch. 3.SigningworkingcapitalloancontractwithFubonBank. 4.Signing working capital loan contract with Hua Nan Bank Taipei Nanmen Branch. 5.The Company's plan to replace the PC-271 compressor. 6.TheCompany'sex-dividenddateforcashdividendsisproposedtobesetonSeptember1,2019. 7.DistributionofremunerationtomanagersoftheCompanyin2018 8.Amendmenttothe"SalaryPointsandTitleTable"oftheCompany. 9.Formulation of the Company's "Key Points for Further Education of Directors" 10.TheCompany'ssubsidiariesplantojointlysellthereinvestedexpertbuilding,R&Dbuilding andtheassociatedlandownedbyKunshanYufuTechnologyEducationConsultingCo.,Ltd.and Kunshan Jia'an Technology Education Consulting Co., Ltd. 11. Change of the Company's original plan of disposing of the equity of Taiwan TUM Inc. it holds with another plan. 12.TheCompany'ssubsidiaryAsiaCarbonCo.,Ltd.intendstobedissolvedandgothroughliquidation procedures Extraordinary motion: The Company plans to carry out SM1 Revamping EPC construction.
2019/10/31 (10thtimein2019)	1.ConsolidatedfnancialstatementsoftheCompanyinthethirdquarterof2019. 2.Signing working capital loan contract with Mega Bank Dunhua Branch. 3.SigningworkingcapitalloanandreceivableguaranteecontractwithTaiwanCooperativeBank Jingmei Branch. 4. Signing a medium-term working capital loan contract with Taiwan Cooperative Bank Jingmei Branch. 5.Signing working capital loan contract with Chang Hwa Bank Guting Branch. 6.Signing working capital loan contract with Bank of Taiwan Zhongshan Branch. 7.Signing working capital loan contract with First Commercial Bank Bade Branch. 8.Amendment to the Company's organization. 9.The Company's proposal to lift the restrictions on non-competition of managers. 10.BusinessandcapitalexpenditurebudgetoftheCompanyin2020. 11.Audit plan of the Company for 2020. Extraordinarymotion:TheCompanyanditssubsidiaryYushengDevelopmentCo.,Ltd.paidlitigation expensesonbehalfofformerdirectorsandmanagers;theCompanyisurgedto implementthemanagementofexpensesandsupervisionoversubsidiariesin accordance with the Company's internal control system.
2019/12/24 (11thtimein2019)	1.Signing working capital loan contract with the Land Bank Zhonghe Branch. 2.Signing working capital loan and export documentary contract with Entie Bank. 3.Appointment of the Company's personnel. 4.PlantodisposeoftheequityofLeitingConstructionCo.,Ltd.heldbytheCompanyanditssubsidiary Yusheng Development Co., Ltd. Extraordinary motion: Participation in the discussion of cash capital increase of Yuanjie Investment Co., Ltd.

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Meeting time Resolutions
1.The�Company's�2019�consolidated�and�individual�financial�statements.
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Meeting time	Resolutions
	1.TheCompany's2019consolidatedandindividualfnancialstatements.
2020/03/11 (1sttimein2020)	2.TheCompany's2019earningsdistribution. 3.Distributionofdirectors'remunerationandemployees'remunerationin2019. 4.By-election of directors of the Company. 5.Nomination and review of candidates for directors. 6.Discussion on "Rules of Procedure of Shareholders' Meeting". 7.Formulation of the Company's "Code of Ethical Conduct". 8. The Company plans to hold the 2020 general shareholders' meeting at 9:30 a.m. on May 27 (Wednesday),2020attheCompany'sKaohsiungfactory(No.7,IndustryIRoad,LinyuanDistrict, KaohsiungCity).Thereasonsforthemeetingandtheagendaareherewithattached. 9. The period and place of accepting shareholder's proposals for the Company's 2020 general shareholders' meeting. 10.TheperiodandplaceofacceptingnominationsbyshareholdersfortheCompany's2020general shareholders' meeting. 11.IssuanceoftheletterofbanksupporttotheCompany'ssubsidiaryRongfuCo.,Ltd. 12. Revision of some articles of the Company's Rules of Procedures of the Board of Directors' Meeting. 13.Revision of some articles of the Company's Organizational Rules of the Audit Committee. 14. The Company's 2019 self-assessment report on internal control system and statement of internal control system. 15. Amendment to the Company's "Measures on the Management of the Financial Statement Preparation Process". Extraordinary motion: Reinstatement of the former "independent director" salary payment method.
2020/03/23 (2ndtimein2020)	1.Measures for transfer of the Company's treasury shares to employees. 2.PlantobuybacktheCompany'sshares. 3.Plan to revise the reasons for convening the 2020 general shareholders' meeting and the agenda.
2020/04/14 (3rdtimein2020)	1.Reviewandrecognitionofthe2019earningsdistributionplanproposedbyshareholders. 2.Change of the reasons for convening the 2020 general shareholders' meeting.

(12)�As�of�the�publishing�date�Director�or�Supervisor�with�different�opinions�in�the�board� meeting:

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Independent director's opinion and the response of the
Meeting Date Proposal
company
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Meeting Date	Proposal	Independent director's opinion and the response of the company

2019/01/02 (1sttimein2019)	Motion proceedings	DirectorTie-HanSun,Zhen-YuanLiuobjected;Kuo-Shuai Chao Independent director, Kuo-Chin Chang Independent directorobjected;other5，Directors agreed.
2019/01/09 (2ndtimein2019)	Personnel penalty cases	Kuo-Shuai Chao Independent director and Kuo-Chin Chang Independentdirectornotpresentandsubmitopinionsin writing: (1)Theconventionisnotdulyinformedandafter communication with the chairperson, the deficit is not corrected. Please have my opinion on record. (2)NoIndependentdirectorshowsup,thusthemeetingshall becalledoffimmediately. Responsibilitiesoftherelatedpersonnelshallbedeemed byjuridicalunitandthequestionoftherightfulnessofthe conventionofthemeetingshallbedeemedbycompetent authority.

(13)�Resignation�of�financial�reporting�persons�(including�Chairperson,�General�Manager,� accounting�director,�treasurer,�internal�auditor,�and�head�of�research�and�development)�as� of the latest year and as of the date:

TITLE	NAME	TAKE OFFICE DATE	LEAVE ON	CAUSE
Chairperson	Yi-Chin Wu	105.04.11	108.01.31	Discharged
General Manager	Chin-Dien Wu	101.08.14	108.01.31	Retired

Note: The alleged company persons refer to Chairperson, General Manager, Accounting Director, Controller, Internal Audit Director and Research and Development Director.

5. Information Regarding Fee

(1)Information�Regarding�Fee

Table�1

Firm	Name of CPA	Name of CPA	Duration	Note
KPMG	Lin Wu	Yuan-Sheng Yin	2019Q1	-
			2019Q2
			2019Q3
			2019

Table�2��

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Items
Audit Fee Non-audit Fee Total
Fee Range
1 Under NT$ 2,000,000 v
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Items Fee Range	Items Fee Range	Audit Fee	Non-audit Fee	Total
1	Under NT$ 2,000,000		v
2	NT$2,000,001~NT$4,000,000	v		v
3	NT$4,000,001~NT$6,000,000
4	NT$6,000,001~NT$8,000,000
5	NT$8,000,001~NT$10,000,000
6	Over NT$100,000,000

Table�3 Unit: thousand dollars

Accounting Firm	Name of CPA	Audit Fee	Non-audit Fee	Non-audit Fee	Non-audit Fee	Non-audit Fee	Non-audit Fee	Period Covered byCPA's Audit
			System of Design	Company Registration	Human Resource	Others	Subtotal
KPMG	Lin Wu	3,330				222	222	2019
	Jason Yin

Note1:�The�annual�report�of�2018�and�the�shareholders'�meeting�agenda�handbooks�of�2019�were�examined�by�CPAs�at�an�audit�fee�of� NT$30,000,�and�CPA's�opinion�on�the�required�procedure�for�dealing�with�the�assets�of�Asia�Carbons�Yusheng�at�NT$30,000. Note2:2019 income tax provisional audit fee NT$100,000. Note3:GUI's�2019�financial�report�audit�fee�NT$91,667.

(2)�When�the�company�changes�its�accounting�firm�and�the�audit�fees�paid�for�the�fiscal�year� in which such change took place are lower than those for the previous fiscal year, the amounts�of�the�audit�fees�before�and�after�the�change�and�the�reasons�shall�be�disclosed:� NA.
(3)�When�the�audit�fees�paid�for�the�current�fiscal�year�are�lower�than�those�for�the�previous� fiscal�year�by�15%�or�more,�the�reduction�in�the�amount�of�audit�fees,�reduction� percentage,�and�reason(s)�therefor�shall�be�disclosed:�No�such�case.

6. Alternation of CPA: Yes.

(1)�Former�CPA

(1)FormerCPA
Replacement date	2019.04.01
Cause	To meet the need of company	development and internal administration
DescribewhethertheCompanyterminated or the CPA did not accept the appointment	Status	CPA		The Company
	Termination of appointment			V
	No longer accepted (continued)appointment
Otherissues(exceptforunqualifedissues) in the audit reports within the last two years	None
Differences with the company	Yes		Accounting principles or practices
			Disclosure of Financial Statements
			Audit scope or steps
			Others

	None	V
	None
Other Revealed Matters	None

(2)Regarding�the�successor�CPA

Nameofaccountingfrm	KPMG
Name of CPA	Lin Wu、Jason Yin
Date of appointment	ApprovedonApr.1,2019bytheBoard
Consultation results and o p i n i o n s o n a c c o u n t i n g treatments or principles with respecttospecifedtransactions and the company's financial reports that the CPA might issue prior to the engagement.	None
Succeeding CPA's written opinion of disagreement toward the former CPA	None

(3)�The�reply�of�the�former�CPA�according�to�regulation�10-5-1.2.

7.�Chairperson,�General�Manager,�CFO�related�to�the�CPA�firm:�None.
Shareholding of Directors, Supervisors, Managers and Major Shareholders changing over 10%:
Shareholding of Directors, Supervisors, Managers and Major Shareholders changing over 10%

Jan.2,2019(before�the�election)

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2018 As of Jan.2,2019
Pledged Pledged
Title Name Holding Holding Holding Holding
Increase Increase
Increase Increase
(Decrease) (Decrease)
(Decrease) (Decrease)
Director HeHe Development Inc.
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Title	Name	2018	2018	As of Jan.2,2019	As of Jan.2,2019
		Holding Increase (Decrease)	Pledged Holding Increase (Decrease)	Holding Increase (Decrease)	Pledged Holding Increase (Decrease)
Director	HeHe Development Inc.
Director	Representative: Yi-Chin Wu
Director	Representative: Yi-Han Wu
Director	Meihao Industry Inc.		1,100,000
Director	Representative: Tie-Han Sun
Director	Zhen-Yuan Liu
Director	Taiwan Styrene Investment Inc.		4,000,000
Director	Representative: Wen-Yuan Lin
Director	Representative: Wen-Yen Pan
Director	Representative: Bo-Yuan Chen
Independent director	Kuo-Shuai Chao
Independent director	Kuo-Chin Chang
Supervisor	Wei-Ping Hsu
Supervisor	HonTon Co., Ltd.
Supervisor	Representative: Din-Rei Hsu
Supervisor	JinChiHon Investment Inc.
Supervisor	Representative: Shen-Chen Lee	(90,000)
General Manager/Deputy General Manager	Chin-Dien Wu
Sales Deputy General Manager	Chong-Kuo Chon	(80,000)
Financial Accounting Department Assistant President	Tzu-Sheng Chou
Investing DeputyCEO	Cheng-Hsin Lu

April�28,�2020(After�election)

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2018 As of Jan.2,2019
Pledged Pledged
Title Name Holding Holding Holding Holding
Increase Increase
Increase Increase
(Decrease) (Decrease)
(Decrease) (Decrease)
Director Taiwan Styrene Investment Inc. 5,500,000 4,500,000
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Title	Name	2018	2018	As of Jan.2,2019	As of Jan.2,2019
		Holding Increase (Decrease)	Pledged Holding Increase (Decrease)	Holding Increase (Decrease)	Pledged Holding Increase (Decrease)
Director	Taiwan Styrene Investment Inc.		5,500,000		4,500,000
Director	Representative: Wen-Yuan Lin
Director	Representative: Jun-Fen Wang
Director	Representative: Jeff Chen
Director	JinChiHon Investment Inc.
Director	Representative: Sheng-Tsheng Lee
Director	KaiJian Co., Ltd.
Director	Representative: Cheng-Yuan Liu
Director	AnChin Development Inc.
Director	Representative: Chi-Yao Sun
Director	Representative: Po-Hao Huang
Independent director	Chin-Chen Chien
Independent director	Kao-Wei Hsu
Independent director	Kuo-Ching Chang
General Manager/ DeputyGeneral Manager	Pao-Yuan Chen
Sales Deputy General Manager	T.k Chung
Financial Accounting Department Assistant President	Jason Chou
InvestingDeputy CEO	Cheng-Hsin Lu

2.Equity transfer: None

Name	Reason for Transfer	Date of Transaction	Transferee	RelationshipbetweenTransfereeandDirectors, Supervisors,Managers and Major Shareholders	Shares
－	－	－	－	－	－

3. Shares Pledge with Related Parties: None

Name	Reason for Pledge	Date of Transaction	Transferee	RelationshipbetweenTransfereeand Directors, Supervisors, Managers and Major Shareholders	Shares	Shares holding %	Shares Pledged %	Pledged Amount

9. Relationship among the Top Ten Shareholders

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Name and Relationship
Spouse's/ Shareholding
Current Between the Company's Top
minor's by�Nominee
Name Shareholding Ten Shareholders, or Spouses or Note
Shareholding Arrangement
Relatives Within Two Degrees
Shares % Shares % Shares % Name Relationship
----- End of picture text -----

Name	Current Shareholding	Current Shareholding	Spouse's/ minor's Shareholding	Spouse's/ minor's Shareholding	Shareholding byNominee Arrangement	Shareholding byNominee Arrangement	Name and Relationship Between the Company's Top Ten Shareholders, or Spouses or Relatives Within Two Degrees	Name and Relationship Between the Company's Top Ten Shareholders, or Spouses or Relatives Within Two Degrees
	Shares	%	Shares	%	Shares	%	Name	Relationship

ChenChiChuan Foundation	28,750,000	5.45%
Taiwan Steel Group United Co., Ltd.	23,368,000	4.43%
Representative: Chiung-Fen Wang	0	0.00%
ChunYu Inc.	11,678,000	2.21%
Representative: Hui-Cheng Lin	0	0.00%
Taiwan Styrene Investment Inc.	10,000,000	1.89%
Representative: Wen-Yuan Lin	105,000	0.02%
Representative: Jun-Fen Wang	0	0.00%
Representative: Jeff Chen	0	0.00%
Chase Bank Entrusted Starlight Security Index Fund Investment Account	8,306,977	1.57%
Chase Bank Entrusted Fanjiade New Market SecurityInvestment Account	7,999,000	1.52%
Citi Bank Entrusted Norway Central Bank Investment Account	7,485,222	1.42%
Chunyu Investment Co., Ltd.	6,529,000	1.24%
Representative: Chi-Tai Chen	0	0.00%
Hi-Ace Trading Co., Ltd.	6,440,000	1.22%
Representative: Chi-Tai Chen	0	0.00%
The Special Account of JPMorgan Chase Bank Taipei Branch as Custodian for ABP Retirement Fund	4,102,000	0.78%

Note 1: For institutional shareholder, specify the representative.

Note�2:�For�institutional�shareholder��not�be�elected�as�director,�specify�the�Chairperson.

10.�Share�holding�ratio�in�a�reinvestment�entity�by�the�company,�the� directors,�supervisors,�managers�of�the�company�and�businesses� directly�or�indirectly�controlled�by�the�company

Mar.28, 2020；Unit: Shares；％

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Investment�controlled�by�
Investment of the Comapny Overall investment
Reinvestment entities Director and Supervisor
Shares % Shares % Shares %
Grand Cathay Venture
40,000,000 25.00 40,000,000 25.00
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Reinvestment entities	Investment of the Comapny	Investment of the Comapny	Investmentcontrolledby Director and Supervisor	Investmentcontrolledby Director and Supervisor	Overall investment	Overall investment
	Shares	%	Shares	%	Shares	%
Grand Cathay Venture	40,000,000	25.00			40,000,000	25.00
Capital Co.,Ltd.
Meihao Industrial Inc.	29,629,597	37.04			29,629,597	37.04
LeiTing Construction Inc.	6,306,400	91.40	593,600	8.60	6,900,000	100.00
Yangmingshan Tien Lai Resort & Spa	25,865,618	65.07	4,807,774	12.10	30,673,392	77.17
RonFu Inc.	24,750,607	99.00			24,750,607	99.00
Yuan-Shin Technological Material Co.,Ltd.	5,000,000	100.00			5,000,000	100.00
Gvision-Usa, Inc.	666,667	44.44			666,667	44.44
Yu-Sheng Development Co.,Ltd.	103,975,894	99.99			103,975,894	99.99
A s i a C a r b o n s & TechnologyInc.	9,866,389	98.58			9,866,389	98.58
Functional Coating System Technologies Co.,Ltd.	1,744,186	34.88			1,744,186	34.88
TienLai Industrial Inc.			500,000	50.00	500,000	50.00
Kun Shan International Ltd.				62.03		62.03
K u n s h a n Y u f u Technology Education ConsultingCo.,Ltd.				100.00		100.00
JiaAn Tech. Consulting Inc.				100.00		100.00
Grand Capital Co., Ltd.				100.00		100.00
YuChen Tech. Inc.			7,962,803	37.92	7,962,803	37.92
Asia Graphene & TechnologyInc.	40,000,000	25.00			40,000,000	25.00
Yangmingshan Tien Lai Art Village Development Inc.	29,629,597	37.04			29,629,597	37.04

Note:�Investment�by�equity�method.

IV. Capital Overview

1. Capital and Shares

(1)�Capital�source��Unit: Share: TWD

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Authorized Capital Paid-in Capital Remark
Par Capital
Date value Shares Amount Shares Amount Source Increased�by Others
Assets Other
than Cash
68.11 10 30,000,000 300,000,000 7,500,000 75,000,000 Cash ioffer 75,000,000
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Date	Par value	Authorized Capital	Authorized Capital	Paid-in Capital	Paid-in Capital	Remark	Remark	Remark
		Shares	Amount	Shares	Amount	Source	Capital Increasedby Assets Other than Cash	Others
68.11	10	30,000,000	300,000,000	7,500,000	75,000,000	Cash ioffer 75,000,000
69.09	10	30,000,000	300,000,000	30,000,000	300,000,000	Cash ioffer 225,000,000
70.08	10	50,000,000	500,000,000	35,000,000	350,000,000	CapitalIncreasedbyCash50,000,000
71.04	10	50,000,000	500,000,000	50,000,000	500,000,000	Cash ioffer 150,000,000
76.05	10	100,000,000	1,000,000,000	100,000,000	1,000,000,000	Surplus Transferred to Capital 500,000,000		(76)Tai-tsai-chen-(1)00452
77.08	10	150,000,000	1,500,000,000	150,000,000	1,500,000,000	Surplus Transferred to Capital 500,000,000		(77)Tai-tsai-chen-(1)08547
78.07	10	180,330,000	1,803,300,000	180,330,000	1,803,300,000	Surplus Transferred to Capital 303,300,000		(78)Tai-tsai-chen-(1)23774
79.09	10	216,566,000	2,165,660,000	216,566,000	2,165,660,000	Surplus Transferred to Capital 362,360,000		(79)Tai-tsai-chen-(1)02187
80.07	10	260,283,000	2,602,830,000	260,283,000	2,602,830,000	Surplus Transferred to Capital 437,170,000		(80)Tai-tsai-chen-(1)第01472
84.05	10	313,112,149	3,131,121,490	313,112,149	3,131,121,490	Surplus Transferred to Capital 528,291,490		(84)Tai-tsai-chen-(1)第25397
85.05	10	392,332,709	3,923,327,090	392,332,709	3,923,327,090	Surplus Transferred to Capital 792,205,600		(85)Tai-tsai-chen-(1)27060
87.06	10	431,565,979	4,315,659,790	431,565,979	4,315,659,790	Surplus Transferred to Capital 392,332,700		(87)Tai-tsai-chen-(1)52170
89.07	10	552,600,000	5,526,000,000	461,826,455	4,618,264,550	Surplus Transferred to Capital 302,604,760		(89)Tai-tsai-chen-(1)57762
90.06	10	552,600,000	5,526,000,000	485,151,024	4,851,510,240	Surplus Transferred to Capital 233,245,690		(90)Tai-tsai-chen-(1)138425
92.07	10	675,000,000	6,750,000,000	534,156,178	5,341,561,780	Surplus Transferred to Capital 490,051,540		(92)Tai-tsai-chen-(1)0920133877
94.07	10	675,000,000	6,750,000,000	566,529,279	5,665,292,790	Surplus Transferred to Capital 323,731,010		Jin-guan-chen-yi-tzu-0940127690
96.07	10	675,000,000	6,750,000,000	588,969,290	5,889,692,900	Surplus Transferred to Capital 224,400,110		Jin-guan-chen-yi-tzu-0960040233
97.08	10	675,000,000	6,750,000,000	606,479,298	6,064,792,980	Surplus Transferred to Capital 175,100,080		Jin-guan-chen-yi-tzu-0970040302
97.12	10	675,000,000	6,750,000,000	591,479,298	5,914,792,980	Treasurystock 15,000,000 shares
98.03	10	675,000,000	6,750,000,000	590,672,298	5,906,722,980	Treasurystock 807,000 shares
98.06	10	675,000,000	6,750,000,000	580,340,298	5,803,402,980	Treasurystock 10,332,000股
101.12	10	675,000,000	6,750,000,000	502,733,109	5,027,331,090	Capital deduction 776,071,890		Jin-guan-chen-fa-tzu-1010048476 Sho-shan-10101251550
103.10	10	675,000,000	6,750,000,000	527,869,764	5,278,697,640	Surplus Transferred to Capital 251,366,550		Jin-guan-chen-fa-tzu-1030027404

Unit: shares

Share type	Authorized Capital	Authorized Capital	Authorized Capital	Note
	Issued Shares	Un-issued Shares	Total Shares
Ordinary Share	527,869,764 shares	147,130,236	675,000,000

2.Information for Shelf Registration: None

Share type	Preparing to Issue Amount	Preparing to Issue Amount	Issued Amount	Issued Amount	Purpose and Effect for Issued Shares	Issue Period for Unissued Shares	Remarks
	Total Shares	Authorized	Shares	Amount

(2)�Status�of�Shareholders�� April 30, 2019

Status Quantity	Government Agencies	Financial Institutions	Other Juridical Persons	Domestic Natural Persons	Foreign Institutions & Natural Persons	Total
NumberofShareholders	3	4	283	91,785	223	92,298
Shareholding(shares)	1,448,851	10,314	110,734,184	322,968,478	92,707,937	527,869,764
Percentage	0.27	0	20.98	61.18	17.57	100
Investment from China: 0

Note:�Any�primary�exchange�(or�OTC)�listed�company�or�emerging�stock�company�shall�disclose�its�Chinese�investor�shareholding�ratio.� "Chinese investment" means a person, juristic person, group, or other institution or a company in which the same have invested in a third jurisdiction in accordance with Article 3 of the Regulations Governing Permission for People from the Chinese Area to Invest in the Taiwan Area.

(3)�Shareholding�Distribution�Status

1.Common Shares: April 30, 2019

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Class�of�Shareholding�(Unit:�Share) Number�of�Shareholders Shareholding�(Shares) Percentage
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ClassofShareholding(Unit:Share)	NumberofShareholders	Shareholding(Shares)	Percentage

1～999	48670	9005025	1.71%
1,000～5,000	30716	69802674	13.22%
5,001～10,000	6864	53635988	10.16%
10,001～15,000	2108	26240979	4.97%
15,001～20,000	1345	24950563	4.73%
20,001～30,000	1050	26663568	5.05%
30,001～40,000	458	16249262	3.08%
40,001～50,000	270	12666384	2.4%
50,001～100,000	477	34471490	6.53%
100,001～200,000	179	25310632	4.79%
200,001～400,000	80	22971904	4.35%
400,001～600,000	18	8669720	1.64%
600,001～800,000	11	7438441	1.41%
800,001～1,000,000	7	6597404	1.25%
1,000,001以上	45	183195730	34.71%
Total	92,298	527869764	100%

2.Preferred Shares: None April 30, 2019

ClassofShareholding(Unit:Share)	NumberofShareholders	Shareholding(Shares)	Percentage

(4)�List�of�Major�Shareholders��Mar�28,�2019

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Shares
Shares Percentage
N a m e
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Shares N a m e	Shares	Percentage

ChenChiChuan Foundation	28,750,000	5.45%
TAIWAN STEEL GROUP UNITED CO., LTD.	23,368,000	4.43%
ChunYu Inc.	11,678,000	2.21%
Taiwan Styrene Investment Inc.	10,000,000	1.89%
Chase Bank Entrusted Starlight Security Index Fund Investment Account	8,306,977	1.57%
Chase Bank Entrusted Fanjiade New Market Security Investment Account	7,999,000	1.52%
Citi Bank Entrusted Norway Central Bank Investment Account	7,485,222	1.42%
Chunyu Investment Co., Ltd.	6,529,000	1.24%
HI-ACE TRADING CO., LTD.	6,440,000	1.22%
The Special Account of JPMorgan Chase Bank Taipei Branch as Custodian for ABP Retirement Fund	4,102,000	0.78%

(5)�Market�Price,�Net�Worth,�Earnings,�and�Dividends�per�Share�for�the�recent�2�years

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Year
2018 2019
Item
Highest Market Price 28.50 25.50
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Year Item	Year Item	Year Item	2018	2019
Mkt Pi	Highest Market Price		28.50	25.50
are rce per Share	Lowest Market Price		19.45	20.55
	Average Market Price		22.72	23.26
Net Worth per Share	BeforeDistribution		14.14	13.30
	AfterDistribution		12.14	(Note4)
EPS	Weighted Average Shares (thousandshares)		527,870	527,870
	EPS		2.30	1.67
Dividends per Share	Cash Dividends		2.00	(Note4)
	Stock Dividends	From Retained Earnings	-	(Note4)
		From Capital Reserve	-	(Note4)
	AccumulatedUndistributed Dividends		-	-
Return on Investment	Price/EarningsRatio(Note1)		9.88	13.93
	Price/DividendRatio(Note2)		11.36	(Note4)
	CashDividendYieldRate(Note3)		0.09	(Note4)

Note�1:�This�profit�ratio�is�the�average�closing�price/earnings�per�share�for�the�year. Note 2: EPS ratio is the average closing price per share/cash dividend per share for the year. Note 3: Cash dividend rate s cash dividend per share/average closing price per share for the year. Note�4:�The�surplus�distribution�case�for�the�2018�has�not�been�decided�by�the�shareholders'�meeting,�so�the�amount�is�not�shown.

(6)�Dividend�Policy�and�Implementation�Status

1.Dividend policy stipulated in the articles of incorporation
If�the�company�has�any�annual�profit�(that�is,�before�the�allocated�remuneration�of�employees�and� directors�is�deducted�from�the�profit�before�tax),�it�shall�set�aside�1%�to�5%�for�the�remuneration� of employees and no more than 2.5% for the remuneration of directors. However, if the company still�has�accumulated�deficits,�it�shall�reserve�the�compensation�amount�in�advance.
The�Company�may,�by�a�resolution�adopted�by�a�majority�vote�at�a�meeting�of�board�of�directors� attended�by�two-thirds�of�the�total�number�of�directors,�have�the�profit�distributable�as�employees'� compensation�distributed�in�the�form�of�shares�or�in�cash;�and,�in�addition�thereto,�a�report�of�such� distribution�shall�be�submitted�to�the�shareholders'�meeting.
If�the�company�has�earnings�in�its�annual�final�accounts,�it�shall�first�pay�the�business�income�tax� in�accordance�with�the�law,�offset�the�accumulated�deficits,�and�then�deposit�10%�of�the�balance� as�the�legal�reserve,�and�make�special�reserve�as�necessary.�The�board�of�directors�shall�draw�up�a� distribution�proposal�to�submit�it�to�the�shareholders'�meeting�for�approval�of�the�above-mentioned� distributed�earnings�combined�with�the�accumulated�undistributed�earnings�of�previous�years.�The� principle�of�the�proportion�of�cash�dividends�in�the�total�dividend�in�the�distribution�proposal�shall� be�no�less�than�30%.�The�cash�dividend�payout�rate�may�be�adjusted�to�10�to�30%�if�it�is�necessary� to�respond�to�industry�changes,�major�investment�plans�and�financial�restructuring,�or�if�there�is�a� sudden major capital demand. However, if the cash dividend per share is less than NT$0.1, it may not�be�issued�and�shall�be�paid�as�stock�dividend�instead.
2.The�proposed�dividend�distribution�at�the�shareholders'�meeting:�
(1)�The�cash�dividend�to�be�distributed�to�shareholders�in�2019�was�NT$1.0�per�share,�which� amounted to NT$527,869,764 and is calculated according to the shareholders' shareholding ratio�recorded�in�the�shareholders'�list�on�the�ex-dividend�base�date.
(2)�If�any�change�in�the�company's�share�capital�affects�the�number�of�outstanding�shares�and� the�shareholders'�coupon�rate�needs�to�be�revised�as�a�result�of�such�change,�the�board�of� shareholders shall give the chairman a free hand to handle the earnings allocation according to the�Company�Act�or�relevant�laws�and�regulations�before�the�ex-dividend�base�date.
(3)�The�cash�dividend�is�distributed�to�NT$1,�while�the�sum�of�the�amounts�less�than�NT$1�will�be� transferred�back�to�the�undistributed�earnings.
3.Explanation of expected major changes in dividend policy: No such case.
(7)��Effect�upon�business�performance�and�earnings�per�share�of�any�stock�dividend� distribution�proposed�or�adopted�at�the�most�recent�shareholders'�meeting:�None

(8)�Compensation�of�employees,�directors,�and�supervisors:

The percentages or ranges with respect to employee, director, and supervisor compensation, as set forth in the company's articles of incorporation:
If�the�company�has�any�annual�profit�(that�is,�before�the�allocated�remuneration�of�employees�and� directors�is�deducted�from�the�profit�before�tax),�it�shall�set�aside�1%�to�5%�for�the�remuneration�of� employees and no more than 2.5% for the remuneration of directors. However, if the company still has�accumulated�deficits,�it�shall�reserve�the�compensation�amount�in�advance.
��The�Company�may,�by�a�resolution�adopted�by�a�majority�vote�at�a�meeting�of�board�of�directors� attended�by�two-thirds�of�the�total�number�of�directors,�have�the�profit�distributable�as�employees'� compensation�distributed�in�the�form�of�shares�or�in�cash;�and,�in�addition�thereto,�a�report�of�such� distribution�shall�be�submitted�to�the�shareholders'�meeting.
2.�The�basis�for�estimating�the�amount�of�employee,�director,�and�supervisor�compensation,�for� calculating�the�number�of�shares�to�be�distributed,�and�the�accounting�treatment�of�the�discrepancy,� if�any,�between�the�actual�distributed�amount�and�the�estimated�figure,�for�the�current�period: There�is�no�difference�between�the�estimated�amount�of�employees'�remuneration�and�directors'� remuneration in the current period and the actual allocated amount. There is no allotment of shares in the current period.
3.�Information�on�any�approval�by�the�board�of�directors�of�proposed�distribution�of�employee� compensation:
(1)�Proposed�distribution�of�employee�compensation,�shares,�and�compensation�for�directors�and� supervisors:

The�board�of�directors�of�the�company�has�decided�on�March�11,�2020�that�the�earnings� distribution�in�2019�was�as�follows:

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Item Amount
----- End of picture text -----

Item	Amount

Remuneration	21,539,080
Employee option	0
Director's compensation	26,923,851

(2)�The�amount�of�any�employee�compensation�to�be�distributed�in�stocks,�and�the�size�of�that� amount as a percentage of the sum of the after-tax net income stated in the parent company only financial reports or individual financial reports for the current period and the total employee�bonus:�Not�applicable�as�there�is�no�employee�compensation�distributed�in�stocks.
(3)�Estimated�earnings�per�share�after�consideration�of�the�proposed�allocation�of�employee� remuneration�and�the�remuneration�of�directors�and�supervisors:�Not�applicable�due�to� expensable�compensation�for�employees�and�directors�and�supervisors.
4.�The�actual�distribution�of�employee,�director,�and�supervisor�compensation�for�2018�(with�an� indication�of�the�number�of�shares,�monetary�amount,�and�stock�price,�of�the�shares�distributed),�

and,�if�there�is�any�discrepancy�between�the�actual�distribution�and�the�recognized�employee,� director, or supervisor compensation, additionally the discrepancy, cause, and how it is treated. (1)�Employee�compensation:�NT$33,086,131

(2)�Director�and�supervisor�compensation:�NT$41,073,000
(3)�Amount�of�shares:�None
(4)�There�is�no�discrepancy�between�the�above�distributed�amount�and�the�original�estimate.

(9)�Buyback�of�Treasury�Stock�

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Batch 1 [st] �batch 2 [nd] �batch 3 [rd] �batch 4 [th] �batch
To protect the
Transfer to Transfer to Transfer to
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Batch	1stbatch	2ndbatch	3rdbatch	4thbatch
	Transfer to	Transfer to	To protect the	Transfer to
Purposeofbuy-back	employee	employee	interest of the shareholders	employee
Timeframeofbuy-back	From Jan.4, 2006 to Mar.3,2006	From Apr.4, 2006 to Jun.3,2006	From Sep.24,2008 to Nov.22,2008	From Mar.25,2020 to May.22,2020
Price range	13.00~18.00	12.00~15.00	5.23~10.00	8.61~25.77
Class, quantity of shares boughtback	Common share 807,000 shares	Common share 10,332,000 shares	Common share 15,000,000 shares	-
Valueofsharesbought- back(inNT$thousands)	12,119,378 sollars	143,314,554 dollars	107,933,335 dollars	-
Shares sold/transferred	Cancelled	Cancelled	Cancelled	-
Accumulatednumberof companyshares held	Common share 0 share	Common share 0 share	Common share 0 share	-
Percentage of total companysharesheld(%)	0%	0%	0%	-

2.Corporate�bond:�None.
3.Preferred shares: None.
4.Global�Depository�Receipts:�None.
5.Employee Stock Options: None.
6.Restricted Stock: None.
Status of New Shares Issuance in Connection with Mergers and Acquisitions: None.
8.Fund Utilization Status
(1)Plan:�Private placement conducted in 3 years: None.
(2)Implementation�status:�NA

V. Operational Highlights

1.Business content

(1)Scope�of�Business

1.Main content
(a)Production�and�sale�of�styrene�monomer�(SM),�intermediate�products�and�by-products.
(b)�The�processing�of�SM�and�intermediate�products�and�the�production�and�marketing�of�processed� products�(subject�to�the�approval�of�the�Investment�Commission�of�the�Ministry�of�Economic� Affairs�(MOEA).
(c)Import�and�sale�of�SM�and�other�related�chemical�raw�materials�and�products
�The�foregoing�business�shall�be�conducted�in�accordance�with�relevant�laws�and�regulations.
2.Business proportion:

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Item Business proportion
----- End of picture text -----

Item	Business proportion

SM	92.54%
PDEB	3.35%
Others	4.11%

The company's current products and services
(1)�SM�(2)�PDEB�(3)�Methylbenzene�(4)�Hydrogen�(5)�Steam

(2)�Industry�overview

Current situation and development of styrene industry

The�company's�main�product,�styrene�monomer�(SM),�is�a�key�intermediate�raw�material�in� petrochemical�industry.�It�is�the�basic�raw�material�of�polystyrene�(PS),�acrylonitrile-butadienestyrene�resin�(ABS)�and�other�plastics�in�five�pan-plastics.�As�a�bulk�petrochemical�raw�material,�its� demand�is�closely�related�to�global�economic�growth�(GDP).

In�the�first�half�of�2019,�the�annual�maintenance�of�SM�plants�in�Asia�concentrated�from�March� to�May,�during�which�the�capacity�loss�was�about�640,000�tons.�In�addition,�affected�by�floods,� heavy�fog�and�fire�in�the�dock�storage�tank,�the�shipment�of�SM�exports�in�the�United�States�was� seriously delayed, which affected the arrival of goods to customers in Europe and Northeast Asia, such as South Korea and Taiwan; the SM price was therefore supported. On the cost side, due to the new�production�capacity�of�benzene,�the�benzene�market�suffered�an�oversupply,�and�the�price�of� benzene�was�weak;�in�addition,�the�demand�for�ethylene�was�weak�and�the�price�kept�falling�all�the� way,�resulting�in�a�good�profit�of�the�SM�products�of�the�Company�in�the�first�half�of�2019.

trade war, the economic growth of emerging markets such as mainland China is slowing down, the demand for terminal products is declining, and the downstream demand for SM is also slowing down. Due to the resumption of production in the second half of the year, SM products from Europe and America�were�re-supplied�to�Northeast�Asia.�With�a�sufficient�supply�and�slow�demand,�the�SM�price� in�Northeast�Asia�fell�rapidly�since�mid-September�2019.�In�addition,�it�is�expected�that�about�1.92� million�tons�of�new�SM�capacity�will�be�put�into�production�in�the�first�quarter�of�this�year�(2020),� resulting in a collapse of the SM price in the fourth quarter of 2019 and a loss of the Company.

Comparison of production and sales of main products of the Company in 2019 and 2018: The annual output of SM in 2019 was 357,719 tons, a decrease of 938 tons from 358,657 tons in 2018; the annual sales volume was 355,644 tons, a decrease of 64 tons from 355,708 tons in 2018. In 2019, the annual output�of�p-diethyl�benzene�was�5,682�tons,�an�increase�of�431�tons�from�5,251�tons�in�2018;�the�annual� sales volume was 5,346 tons, an increase of 54 tons from 5292 tons in 2018.

Looking�forward�to�2020,�the�global�outbreak�of�the�coronavirus�pandemic�and�the�failure�of�OPEC�+� 1 on March 6 to deepen its production reduction have resulted in adverse economic effects such as a sharp�drop�in�crude�oil�prices,�thus�raising�concerns�about�the�global�economic�growth�this�year.�OECD� released�a�global�economic�growth�forecast�on�March�2,�and�lowered�the�economic�growth�rate�from� 0.5% to 2.4%. If the new coronavirus epidemic is expanding worldwide, it even estimated that the global�growth�rate�would�be�revised�downward�to�1.5%�this�year.�In�addition,�about�3.72�million�tons� of�new�SM�capacity�will�be�put�into�production�in�mainland�China�this�year,�which�will�make�the�SM� market�competition�more�fierce�this�year.

2.The correlation among the upstream, midstream and downstream of styrene industry

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Item upstream Midstream Downstream
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Item	upstream	Midstream	Downstream

Related product	Benzene, ethylene	styrene	PS, EPS, ABS, SBR
Related company	CPC	TSMC, GPPC, FCFC	Chimei, Delta, LCY GRIT, TSRC, etc.

3.Development trend and competition of styrene products

At present, ABS, PS and other general plastics are widely used in household appliances, consumer electronics products, furniture, automotive parts and other products. Because of their excellent processability,�dimensional�stability,�price�reasonableness�and�other�advantages,�they�are�still�the�most� widely used engineering plastics.

In�addition,�to�strengthen�the�competitiveness�of�its�business,�this�year�the�Company�will�start�the� debottlenecking�project�to�reduce�energy�costs�and�raw�material�consumption;�the�project�is�expected�to� be�completed�in�March�2021,�which�will�make�the�Company's�products�more�competitive�and�improve� the�Company's�business�performance.

(3)�Overview�of�technology�and�R&D

To�achieve�sustainable�development,�the�company�focuses�on�improving�the�manufacturing�process�and� removing�bottlenecks�in�the�production�line.�To�pursue�excellent�and�innovative�products,�the�company� develops�diversified�and�high-value�application�products�to�enhance�its�competitiveness.

The R&D expenditure in the last two years is as follows: Unit: NT$1000

2018	2019
43,865	19,700

The overview and results of process improvement and R&D are as follows:

(1)�In�2019,�the�fan�blades�of�the�cooling�water�tower�were�replaced�to�effectively�improve�the� efficiency of the cooling water tower, optimize production costs and reduce greenhouse gas emissions.
(2)�In�2019,�the�Company�completed�the�heat�recycling�in�convection�zone�of�the�heating�furnace�in� the�first-line�styrene�process�area,�reduced�the�exhaust�temperature�of�the�chimney�and�recycled� the�steam�to�achieve�the�energy-saving�effect�and�fulfilled�the�circular�economy.
(3)�In�2019,�the�Company�complied�with�the�air�pollution�emission�standard�of�combustion� equipment�and�completed�the�replacement�of�steam�boiler�oil�with�natural�gas�and�reduced�carbon� dioxide�emission,�in�order�to�reduce�the�impact�of�climate�change�and�maintain�a�sustainable� environment.
(4)�In�2019,�the�new�heat�exchanger�in�the�first-line�ethylbenzene�process�area�was�completed�to� replace the heating furnace to produce low-cost energy and optimize the energy cost
(5)�Develop�materials�related�to�electronic�products�and�medical�equipment.�The�material�preparation� technology�has�been�patented�in�Taiwan,�mainland�China,�the�United�States,�Japan�and�other� countries.

The�products�developed�have�been�tested�by�many�international�well-known�enterprises�and� received good response.

(6)�In�addition�to�the�development�of�the�source�products�of�the�materials�above�and�the�preparation� method of the intermediate products, the Company vertically integrated the processing of application products in order to optimize the process and improve product quality.

(4)�Long-term�and�short-term�business�development�plan

1.Short-term plan
(1)�Continuous�improvement�or�renewal�of�processes�and�equipment,�expansion�of�production� capacity�and�enhancement�of�process�efficiency�to�reduce�energy�consumption�and�boost�the� efficiency�of�raw�materials.
(2)�Introduce�the�whole-plant�heat�integration,�recycle�waste�heat�and�reduce�greenhouse�gas� emissions.
(3)Continue�to�recycle�waste�water�and�promote�water-saving�measures.
(5)�Pay�attention�to�market�trends�and�the�price�trend�of�raw�materials�and�products,�and�adjust�the� inventory to reduce the loss of inventory falling price.

Long-term plan
(1)�Assess�the�introduction�of�green�energy,�reduce�the�impact�of�climate�change�risks,�and�adjust� the energy cost structure.
(2)�Deepen�vertical�integration�of�upstream�and�downstream,�and�develop�downstream�products�to� reduce�the�impact�of�boom�cycle�on�products.
(3)�Continue�to�optimize�energy�costs,�enhance�product�added�value,�and�improve�operational� performance.
(4)�Establish�a�huge�amount�of�data�collection�and�analysis�technology�to�optimize�the�operation�of� the equipment, so as to improve the process quality, equipment utilization rate and production efficiency,�and�optimize�work�safety.

2.Overview of markets and production and marketing

(1)Market�analysis

1.Primary product sales areas: styrene mainly for domestic sales.
2.Market share:

The company's competitors for related product: Grand Pacific Petrochemical Corporation and Formosa�Chemicals�&�Fiber�Corporation.

Current market share in Taiwan: 17.8%

3.Future market supply and demand situation and growth

Styrene�monomer�(SM)�is�one�of�the�indispensable�intermediate�raw�materials�in�the�petrochemical� industry.�Its�downstream�derivatives,�such�as�ABS,�PS,�SBR�and�EPS,�have�been�greatly�in� demand�in�recent�years�due�to�the�booming�development�of�electronics,�household�appliances,� office�automation�and�automobile�industries.�The�domestic�demand�is�equivalent�to�the�production� capacity�of�domestic�manufacturers.�Last�year,�the�domestic�demand�was�about�1.88�million�metric� tons, the domestic production was 2.11 million metric tons, the import was 310,000 metric tons, and the export was 540,000 metric tons. We are on good terms with our customers. Last year, our styrene sales volume was mainly supplied to our long-term contract customers, accounting for 94.6% and 5.4% for exports.

Looking�forward�to�2020,�the�global�outbreak�of�the�coronavirus�pandemic�and�the�failure�of�OPEC� +�1�on�March�6�to�deepen�its�production�reduction�have�resulted�in�adverse�economic�effects�such� as�a�sharp�drop�in�crude�oil�prices,�thus�raising�concerns�about�the�global�economic�growth�this� year.�OECD�released�a�global�economic�growth�forecast�on�March�2,�and�lowered�the�economic� growth rate from 0.5% to 2.4%. If the new coronavirus epidemic is expanding worldwide, it even estimated�that�the�global�growth�rate�would�be�revised�downward�to�1.5%�this�year.�In�addition,� about�3.72�million�tons�of�new�SM�capacity�will�be�put�into�production�in�mainland�China�this� year,�which�will�make�the�SM�market�competition�more�fierce�this�year.

4.Expected sales volume

(1)Business�objectives

Major product	Projectedsalesin2019(metrictons)
Styrene	360,000

(2)Advantages�and�disadvantages�of�development
①Favorable�factors�for�development
A.�In�order�to�improve�the�profitability�and�reduce�the�production�cost,�the�Company�is� currently working on the following:
First�-line�styrene�plant�debottlenecking�project:�The�project�contracting�has�been� completed, with the purpose of reducing energy cost and raw material consumption. It is expected�to�be�completed�in�March,�2021,�which�will�make�our�products�more�competitive.
②Unfavorable�factors�for�development
A. The total-volume pollution control in the southern area will restrict the development of industries,�especially�the�petrochemical�industry.�Because�the�old�facilities�cannot�be� replaced�and�the�production�capacity�cannot�be�expanded,�Taiwan's�petrochemical�industry� can only remain the status quo with any development.
B.�The�global�outbreak�of�the�coronavirus�pandemic�and�the�failure�of�OPEC�+�1�on�March�6� to deepen its production reduction have resulted in adverse economic effects such as a sharp drop�in�crude�oil�prices,�thus�raising�concerns�about�the�global�economic�growth�this�year.� OECD�released�a�global�economic�growth�forecast�on�March�2,�and�lowered�the�economic� growth rate from 0.5% to 2.4%. If the new coronavirus epidemic is expanding worldwide, it even�estimated�that�the�global�growth�rate�would�be�revised�downward�to�1.5%�this�year.�
C.�About�3.72�million�tons�of�new�SM�capacity�will�be�put�into�production�in� mainland China this year, and 1.9 million tons of new SM production will be�put�into�a�trial�production�in�February;�this�will�make�the�SM�market� competition�more�fierce�this�year,�and�we�need�to�be�cautious�about�the�situation.

(2)Important�uses�and�manufacturing�processes�of�major�products

The main product of the company is styrene monomer, which is a key intermediate raw material in the petrochemical industry, and its downstream derivatives are all kinds of plastics, such as PS, ABS, SAN, SBR, and EPS, which are applied in daily life, such as clothing, food, housing, transportation, education and entertainment for a wide range of uses.
2.�P-diethylbenzene�(PDEB):�The�desorbent�used�in�the�adsorption�and�separation�process�of�paraXylene�produced�in�aromatic�factories�is�to�desorb�p-Xylene�adsorbed�in�molecular�sieves.�It�has� been�adopted�by�well-known�process�plants�at�home�and�abroad..

3.Product process:
(1)�Styrene�process:�Styrene�is�prepared�by�using�benzene�and�ethylene�as�raw�materials�through� two steps of alkylation and dehydrogenation.
Alkylation�process:�benzene�+�ethylene�→�ethylbenzene

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Benzene
Diethyl�benzene
Transalkylation Reactor
Benzene
Crude�Ethylbenzene
Ethylbenzene
Ethylene
Residual oil
Distillation zone
Alkylation Reactor
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dehydro

 Dehydrogenation�process:�ethylbenzene�→ styrene

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----- Start of picture text -----

Ethylbenzene
Hydrogen
Ethylbenzene
＋ Styrene
Steam
Toluene
Aqueous Absorption� Boiler
tower
phase feedwater
recovery
Reactor
Separating tank Distillation zone
----- End of picture text -----

(2)�PDEB�process:�PDEB�is�prepared�from�ethylbenzene�by�transalkylation�reaction.

Benzene�(Recycled�for�the�use�of�Ethylbenzene�Processing�)

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----- Start of picture text -----

Ethylbenzene Post processing p-diethyl�benzene
Reactor
Distillation zone
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(3)Main�material�supply�status

1.�Benzene:�Mainly�supplied�by�Taiwan�CPC�Corporation�and�imported�from�abroad.
2.�Ethylene:�Mainly�supplied�by�Taiwan�CPC�Corporation.

(4)Key�supplier/trade�debtor�information

Information of major suppliers in the last two years Unit: NT$1,000

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2018 2019
Full year Full year
Relations Relations
No. Name Amount net purchase Name Amount net purchase
with issuers with issuers
ratio�(%) ratio�(%)
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	2018	2018	2018	2018	2019	2019	2019	2019
No.	Name	Amount	Full year net purchase ratio(%)	Relations with issuers	Name	Amount	Full year net purchase ratio(%)	Relations with issuers

1	A	7,349,143	60.88	None	A	5,719,287	60.41	None
2	B	1,832,811	15.18	None	B	1,460,395	15.42	None
3
4
5
6
7
8
9
10
	Other	2,889,688	23.94	None	Other	2,288,732	24.17	None
	Net purchases	12,071,642	100.00	None	Net purchases	9,468,414	100.00	None

Note 1: For suppliers who have purchased more than 10% of the total amount in the latest 2 years, the name of the supplier, its purchase amount�and�proportion�are�listed.�However,�if�the�contract�stipulates�that�the�name�of�the�supplier�shall�not�be�disclosed�or�if�the� trading�counterpart�is�an�individual�and�non-related�party,�they�may�be�coded�as�such. Note�2:�As�of�the�date�of�the�publication�of�the�annual�report,�a�company�that�is�listed�or�whose�shares�have�been�traded�in�the�business� premises�of�a�securities�firm�shall�disclose�the�most�recent�financial�information�that�has�been�audited�or�reviewed�by�a�CPA.

Note�3:�As�the�main�business�of�the�company�is�petrochemical�industry�and�the�subsidiary�has�no�similar�business,�they�cannot�be�combined� for analysis, so it focuses on petrochemical industry.

Major�trade�debtor�information�for�the�last�two�years

Unit: NT$1,000

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2018 2019
Full year net Relations Full year net Relations
No. Name Amount Name Amount
sale�ratio�(%) with issuers sale�ratio�(%) with issuers
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	2018	2018	2018	2018	2019	2019	2019	2019
No.	Name	Amount	Full year net saleratio(%)	Relations with issuers	Name	Amount	Full year net saleratio(%)	Relations with issuers

1	A	7,277,419	49.15	None	A	6,157,091	52.54%	None
2	B	2,527,091	17.07	None	B	1,862,773	15.90%	None
3
4
5
6
7
8
9
10
	Other	5,002,034	33.78	None	Other	3,698,030	31.56	None
	Net sales	14,806,544	100.00	None	Net sales	11,717,894	100.00	None

Note 1: For customers who have sold more than 10% of the total sales amount in the latest 2 years, the name of the customer, its sales amount�and�proportion�are�listed.�However,�if�the�contract�stipulates�that�the�name�of�the�customer�shall�not�be�disclosed�or�if�the� trading�counterpart�is�an�individual�and�non-related�party,�they�may�be�coded�as�such. Note�2:�As�of�the�date�of�the�publication�of�the�annual�report,�a�company�that�is�listed�or�whose�shares�have�been�traded�in�the�business� premises�of�a�securities�firm�shall�disclose�the�most�recent�financial�information�that�has�been�audited�or�reviewed�by�a�CPA. Note�3:�As�the�main�business�of�the�company�is�petrochemical�industry�and�the�subsidiary�has�no�similar�business,�they�cannot�be�combined� for analysis, so it focuses on petrochemical industry.

(5)�Production�value�of�the�last�two�years��

Unit: MT/NT$1,000

production value Annual Majorcommodity(orsector)	2018	2018	2018	2019	2019	2019
	Capacity	Yield	Value	Capacity	Yield	Value
SM	340,000	358,636	12,246,503	340,000	357,719	9,744,550


Total	340,000	358,636	12,246,503	340,000	357,719	9,744,550

Note:�As�the�main�business�of�the�company�is�petrochemical�industry�and�the�subsidiary�has�no�similar�business,�they�cannot�be�combined� for analysis, so it focuses on petrochemical industry.

6)�Sales�value�of�the�last�two�years�

Unit: MT/NT$1,000

Annual sales value Majorcommodities(orsectors)	2018	2018	2018	2018	2019	2019	2019	2019
	Domestic sales		Export sales		Domestic sales		Export sales
	Volume	Value	Volume	Value	Volume	Value	Volume	Value
SM	336,479	13,362,628	19,229	628,367	349,757	10,670,876	5,887	172,338
PDEB	640	42,085	4,652	322,219	660	44,502	4,686	347,939
Other		451,245				482,240
Total	337,118	13,855,958	23,881	950,586	350,417	11,197,618	10,573	520,277

3. Employee information for the last two years up to the date of publication�of�the�annual�report

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2020�up�to�the�date�of�publication�of�
Year 2018 2019
the annual report
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Year	Year	2018	2019	2020uptothedateofpublicationof the annual report

Numberof employees	Staff	89	86	84
	Employee	109	106	107
	Total	198	194	191
	Mean age	46.3	46.3	46.25
	Average seniority	14.6	14.6	15.25
Degree distribution ratio	PhD	1.52%	0.52%	0.52%
	Master	15.66%	13.40%	13.09%
	Bachelor	67.68%	67.01%	67.02%
	Senior high school	13.13%	13.40%	13.61%
	Below senior high school	2.02%	4.12%	4.19%

4. Information on environmental protection, industrial safety and health expenditure

Since�the�establishment�of�the�factory�in�May�1980�at�the�Kaohsiung�Linyuan�Industrial�Park,�our� company has attached great importance to "industrial safety, health and environmental protection." In the early stage, its attention was only paid to industrial safety, health and environmental protection "in the�factory,"�until�the�responsible�care�system�that�has�been�gradually�developed�to�this�day. Since�the�company�obtained�BVC's�ISO-9001�certification�in�1995,�the�starting�date�and�validity�period� of�the�certifications�that�have�been�approved�are�as�follows:

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Certification Version Starting date Validity period
----- End of picture text -----

Certifcation	Version	Starting date	Validity period

ISO9001QualityManagementSystem	2015	1995.09.25	2022.10.29
ISO 14001 environmental management system	2015	1997.12.05	2021.01.02
OHSAS 18001 International Occupational Safetyand Health Management System	2007	2009.12.08	2021.03.11
CNS 15506 Taiwan Occupational Safety and Health Management System	2011	2009.12.08	2021.03.11
ISO14064-1(CNS14064-1)GreenhouseGas InventoryandVerifcationSystem	2006	2014.01.01	Greenhouse gas emissions will beverifedonceayear,with 2019emissionstobeverifed byAugust31,2019.

At present, the company is following the management procedures of various management systems to implement industrial safety, environmental protection, and health management, with regular followup�review�and�continuous�improvement�made�towards�"sustainable�operation."

The�company�was�actively�carrying�out�the�"Responsible�Care�System"�according�to�the� implementation�schedule�stipulated�by�the�Taiwan�Responsible�Care�Association�(TRCA).�By�the�end�of� 2007, all the management guidelines had met the requirements of the schedule.

In�addition,�the�company�completed�REACH�(Registration,�Evaluation,�Authorisation�and� Restriction�of�Chemicals)�registration�of�styrene�and�p-diethylbenzene�with�the�European�Chemicals� Agency�(ECHA)�on�November�30,�2010�and�April�2,�2013,�respectively,�and�provides�customers�with� the�premium�and�safe�products�(styrene�and�p-diethylbenzene)�in�accordance�with�the�EU�REACH� chemicals�regulatory�requirements�and�relevant�domestic�specifications.

In order to meet the requirements of various environmental protection laws and regulations of the�government�and�the�consistent�purpose�of�the�Company's�"sustainable�operation",�the�investment,� improvement�and�sustainable�operation�amount�invested�in�industrial�safety,�health�and�environmental� protection�over�the�past�years�(up�to�the�end�of�2019)�has�exceeded�NT$2,098.95�million.�In�2020,�the� budgeted�investments�are�as�follows:�(1)�NT$41�million�for�"tank�VOC�recovery",�"MT-306�changed�to� internal�floating�roof�tank"�and"�VOC�equipment�and�component�emission�improvement�of�the�whole� plant", in order to effectively improve the VOC emission of processing pumps and components and reduce�the�environmental�impact.�(2)�NT$2�million�for�"coating�of�ceramic�composite�materials�on� cooling�water�pumps"�to�save�electricity,�prolonging�the�blade´s service life and increasing equipment reliability.�(4)�NT$83.1�million�for�"renewal�and�maintenance�of�machinery,�instrument�and�electrical� equipment"�to�ensure�the�safety�and�stability�of�power�supply,�reduce�mechanical�equipment�errors,� maintain�the�stability�of�process�operation,�avoid�problems�of�work�safety�and�environmental�protection� caused�by�abnormal�operation,�improve�the�operability�and�function�of�instrument�system,�improve�the� process�operation�efficiency,�save�energy�consumption�and�reduce�production�cost.

5.Labor-management�relations

(1)�The�company's�employee�welfare�measures,�further�education,�training,�retirement�system� and�its�implementation,�as�well�as�labor�agreements�and�various�employee�rights�and� interests safeguards:
Employee welfare measures, further education, training, retirement system and its implementation Harmonious�and�good�labor�relations�are�the�driving�force�of�enterprise�growth�and�help�to� enhance the image of enterprises. Therefore, in order to create a good working environment and boost�staff�performance,�the�company�strives�for�staff's�life�stability�and�brings�out�their�full� potential,�and�then�achieves�the�goal�of�combining�personal�growth�with�company�development.� In�addition�to�complying�with�labor�laws�and�regulations,�the�company�also�has�various�more� favorable�welfare�programs�than�those�provided�in�the�Labor�Standards�Act.�The�relevant�benefit� schemes�include�employees'�profit�sharing�and�stock�ownership,�stock�options,�and�regular�health� checkups, as well as staff education and training funds to improve their professional skills.
Various employee rights and interests safeguards The�company�in�1986�began�to�implement�the�labor�retirement�measures,�and�set�up�a�supervisory� committee of workers' retirement reserve fund in accordance with the law to manage the pension reserves,�and�formed�a�workers'�welfare�committee�to�deal�with�such�welfare�subsidies�as�cultural,� health,�tourism�and�education�activities.�In�response�to�the�amendment�of�"one�fixed�day�off�and� one�flexible�rest�day"�in�the�Labor�Standards�Act�in�2018,�the�company�also�actively�cooperated� with the amendment of working rules and related management measures to meet the requirements of�the�law�and�create�a�win-win�situation�for�the�labor�and�management.
Retirement system
(1)Allocation�and�management�of�pension�funds
A.�According�to�Article�56�of�the�Labor�Standards�Act�(old�system),�the�company�appropriates� labor�pension�reserve�funds�each�month�and�deposites�such�amount�in�a�designated�account,� and set up a supervisory committee of workers' retirement reserve fund.
B.�According�to�the�Labor�Pension�Act�(new�system),�the�company�appropriates�labor�pensions� at�6%�of�the�average�monthly�wages�of�its�employees�(refer�to�the�Monthly�Contribution� Wages�Classification�of�Labor�Pension)�and�deposits�such�amount�in�individual�accounts�of� labor�pension�at�the�Bureau�of�Labor�Insurance�for�employees.
(2)Conditions�of�retirement
A.Voluntary retirement
(a)Those�who�have�served�for�15�years�or�longer�at�the�company�and�reached�the�age�of�55. (b)�Those�who�have�served�for�25�years�or�longer�at�the�company.
(c)�Those�who�have�served�for�10�years�or�longer�at�the�company�and�reached�the�age�of�60.
B.Forced retirement
(a)Those�who�have�reached�the�age�of�65.
(b)�Those�who�is�mentally�incapacitated�or�physically�disabled�to�the�extent�not�capable�of� delivering�services�are�subject�to�labor�insurance�for�disabilities�from�class�1�to�class�6.

C. Early retirement

Those�whose�age�+�seniority�>�=�60�and�approved�for�special�reasons,�including�family�or�health� reasons.

D.�For�those�who�choose�the�new�system,�the�workers�must�be�at�least�60�years�old.
(3)Application�for�pension�payment
A.�Where�the�Labor�Pension�Act�(new�system)�is�applicable,�the�employee�shall�apply�to�the�Bureau� of�Labor�Insurance�for�pension�payment,�with�the�pension�calculated�according�to�its�provisions:
(a)�Workers�who�have�reached�the�age�of�60�and�have�worked�for�less�than�15�years�are�eligible� for a one-time lump sum pension payment.
(b)�Workers�who�have�reached�the�age�of�60�and�have�worked�for�15�years�or�longer�are�entitled� to monthly pension payments.
(c)�When�a�worker�continues�to�work�after�receiving�his�pension,�his�seniority�is�recalculated.�The� number�of�times�a�worker�receives�such�pension�contributed�and�benefits�shall�be�limited�to� once a year.
B.�Where�the�pension�provisions�of�the�Labor�Standards�Act�(old�system)�are�applicable,�the�pension� shall�be�calculated�according�to�the�standards�as�set�forth�in�Article�55�thereof�as�follows:
(a)�Two�bases�are�given�for�each�full�year�of�service�rendered.�But�for�the�rest�of�the�years�over�15� years,�one�base�is�given�for�each�full�year�of�service�rendered.�The�total�number�of�bases�shall� be�no�more�than�45.�The�length�of�service�is�calculated�as�half�year�when�it�is�less�than�six� months and as one year when it is more than six months.
(b)�For�workers�who�are�forced�into�retirement�pursuant�to�Paragraph�2�of�Article�7�herein�and� whose�mental�or�physical�disabilities�are�caused�by�the�performance�of�their�duties,�their� retirement�payments�will�be�increased�by�20%�in�accordance�with�the�preceding�article.
(c)�The�retirement�pension�base�shall�be�average�monthly�wages�received�in�the�six�months� (including�meal�allowance,�transportation�allowance,�shift�allowance,�overtime�pay�and� vacation�pay)�prior�to�the�effective�date�of�retirement.�The�average�wage�shall�be�calculated�in� accordance�with�the�relevant�provisions�of�the�Labor�Standards�Act�and�the�Enforcement�Rules� of�the�Labor�Standards�Act.

(4)Other:

A.�A�worker�who�has�reached�the�age�of�65�but�is�retained�by�the�company�may�continue�to�work.
B.�The�seniority�mentioned�herein�shall�be�counted�from�the�date�of�entry�into�the�company,�but�the� following�circumstances�shall�not�be�taken�into�account:
(a)�If�the�worker�resigns�and�interrupts�his�work�at�his�own�request,�his�past�work�years�will�not�be� counted if he is re-employed in the company.
(b)�The�duration�of�suspension�without�pay�shall�not�be�counted�towards�seniority.
C. Where a worker dies and his age and seniority are in line with Article 4 hereof for either voluntary retirement�or�forced�retirement,�the�pension�shall�be�paid.
4.Worker-employer agreements

The�company�in�1988�established�an�industrial�trade�union�and�signed�group�agreements.�According� to�the�provisions�of�the�Labor�Standards�Act,�the�company�holds�regular�labor-management�meetings.�

Any�issues�concerning�labor-management�relations�are�fully�communicated�between�the�two�sides,� so there was no dispute.

5.Work environment and personal safety safeguards for employees

Our�company�has�been�working�hard�on�safety,�environmental�protection,�energy�saving,�waste� reduction�and�employee�care�for�a�long�time.�We�hope�that�we�can�not�only�grow�up,�but�also� fulfill�our�social�responsibility�and�move�towards�sustainable�operation.�In�addition�to�abiding� by�relevant�domestic�regulations,�it�has�obtained�OHSAS�18001�US�Occupational�Health�and� Safety Management System Certification, CNS15506 Taiwan Occupational Safety and Health Management System Certification, and ISO 14001 International Environmental Management System�Certification.

According to the Occupational Safety and Health Act, the company conducts pre-employment physical�examinations�and�training�of�safety�and�health�education�for�laborers�at�the�time�of� employment. It carries out regular health checkups and follow-up examinations for employees every year. The company's contracted nurses provide health guidance and follow-up management for each employee. For workers engaged in the operation which is especially harmful to health, the�company�conducts�checkups�for�specific�items,�implement�health�management,�at�the�same� time, all units will carry out internal and external training and arrange professional license training�according�to�the�nature�of�their�work,�such�as�organic�solvent�operation,�specific�chemical� operation,�first�aid�personnel,�oxygen�deficient�operation,�class�A�boiler�operator�and�process� operation.

For the environmental protection, safety and health operation of the factory area, the company not only carries out the inspection of various environments and facilities and operating environment semiannually�according�to�law,�but�also�establishes�a�complete�auditing�procedure.�In�addition�to� routine inspections, operation inspection of high-risk equipment and supervisor inspections, the company performs the auditing of the internal management system of environment, health, and safety�(EHS)�and�every�six�months,�and�receives�the�relevant�audits�of�third-party�verification�units� every year. Further, the company sets up management review organizations at the company and factory level, where the general manager and the factory director convene management review meetings to conduct periodic reviews of EHS affairs, review the operation situation, set goals and directions,�and�make�continuous�improvements�and�boost�EHS�performance.

In order to effectively prevent occupational diseases and occupational accidents, the company, in accordance with the provisions of the Occupational Safety and Health Act, formulates occupational safety�and�health�management�plans,�sets�up�occupational�safety�and�health�business�directors� and managers, and carries out work environment testing every six months. The work safety and environmental protection department carries out audits of automatic inspection methods as scheduled at each unit every year, as well as regular inspections of the work environment. Besides, it�publishes�the�standard�practices�for�labor�safety,�management�system�requirements�and�material� safety�data�sheets�on�the�company's�internal�website�for�publicity�and�access,�so�that�employees� can�better�understand�the�concept�of�safety�and�health�and�internalize�it�in�their�lives.

(2)�List�any�loss�sustained�as�a�result�of�labor�disputes�in�the�most�recent�two�fiscal�years,�and� during�the�current�fiscal�year�up�to�the�date�of�publication�of�the�annual�report,�disclose� an�estimate�of�losses�incurred�to�date�or�likely�to�be�incurred�in�the�future,�and�indicate� mitigation�measures�being�or�to�be�taken.

The�company's�labor-management�interaction�is�good,�and�has�been�named�many�times�the� establishment�with�excellent�labor-management�relations�throughout�the�country.�Every�labormanagement�issue�can�be�solved�smoothly�at�monthly�labor�meetings.�Therefore,�there�were�no�labor� disputes�and�losses�in�the�most�recent�two�fiscal�years,�and�during�the�current�fiscal�year�up�to�the� date�of�publication�of�the�annual�report.�The�company�will�continue�to�maintain�a�good�interactive� mechanism�with�employees�and�cement�harmonious�labor-management�relationship.�It�is�expected� that�there�will�be�no�labor�disputes�or�losses�in�the�future.

6. Material contracts

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Nature Contracting parties Start/end Content Restrictive clause
Supply
Benzene CPC 2019.1~2019.12 No resale
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	Nature Benzene	Contracting parties CPC	Start/end 2019.1~2019.12	Content Supply	Restrictive clause No resale
				contract
	Ethylene	CPC	2019.1~2019.12	Supply contract	No resale

7.Investees:

(1)�Based�on�the�concept�of�diversification,�the�company's�reinvestment�subsidiary�business�spans�the� engineering industry, investment industry, hotel industry, medical equipment services, electronic materials�and�chemical�materials�sales,�with�its�turnover�accounting�for�about�3.75%�of�the� consolidated operating revenue.
(2)Operating�revenue�comparison: Unit: NT$1,000

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Year 2018 2019 Difference
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Year	2018	2019	Difference

Consolidated operating revenue	15,382,654	12,219,389	(3,163,265)
Subsidiaryoperatingrevenue	576,110	501,495	(74,615)
Theratioofsubsidiary'soperatingincometo consolidatedoperatingincome(%)	3.75%	4.10%	0.35%

As�can�be�seen�from�the�above�table,�the�operating�income�of�the�company's�subsidiary�in�2019� and in 2018 was NT$501,495 thousand and NT$576,110 thousand, respectively, with a decrease of�NT$74,615�thousand,mainly�due�to�the�termination�of�the�operation�of�the�subsidiary�Asia� Carbon�Co.,�Ltd.�and�the�end�of�its�sales�of�carbon�material�high-temperature�graphite�and�boron� nitride, and the termination of medical equipment service and the contracting of contracts with lower�profits�in�2019.

VI. Financial Status

1. Balance Sheet and Composite Income Sheet for the last 5 years

(1)Consolidated�Condensed�Balance�Sheet-�Based�on�IFRS��

Unit: NT$ thousands

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Financial Summary for The Last Five Years
Year
2015 2016 2017 2018 2019
Item
(Note�1) (Note�1) (Note�1) (Note�1) (Note�1)
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Year Item	Year Item	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years
		2015 (Note1)	2016 (Note1)	2017 (Note1)	2018 (Note1)	2019 (Note1)

Current assets		4,705,276	4,843,559	4,133,728	4,129,843	3,220,542
Property, Plant and Equipment		4,719,727	4,436,213	4,185,851	4,133,895	3,982,140
Intangibleassets		13,838	12,983	16,518	16,099	12,098
Other assets		2,456,693	2,494,999	2,588,594	2,230,209	2,089,562
Total assets		11,895,534	11,787,754	10,924,691	10,510,046	9,304,342
Current liabilities	Beforedistribution	3,487,413	3,047,734	2,343,499	2,393,363	1,809,054
	Afterdistribution	4,015,283	4,209,048	3,188,091	3,449,103	（Note 2）
Non-currentl	iabilities	1,822,806	1,189,887	1,008,930	399,269	266,028
Total liabilities	Beforedistribution	5,310,219	4,237,621	3,352,429	2,792,632	2,075,082
	Afterdistribution	5,838,089	5,398,935	4,197,021	3,848,372	（Note 2）
Equityattributabletoshareholders of the parent		6,195,605	7,183,367	7,287,931	7,463,319	7,022,052
Capital stock		5,278,698	5,278,698	5,278,698	5,278,698	5,278,698
Capital surplus		84,646	70,339	68,142	60,415	42,418
Retained earnings	Beforedistribution	1,108,202	1,983,443	1,843,580	2,546,063	2,282,185
	Afterdistribution	580,332	822,129	998,988	1,490,323	（Note 2）
Other equity i	nterest	(275,941)	(149,113)	97,511	(421,857)	(581,249)
Treasury stoc	k	-	-	-	-	-
Non-controlling interest		389,710	366,766	284,331	254,095	207,208
Total equity	Beforedistribution	6,585,315	7,550,133	7,572,262	7,717,414	7,717,414
	Afterdistribution	6,057,445	6,388,819	6,727,670	6,661,674	（Note 2）

Note 1：Certified�by�accountant. Note2：2019�earning�distribution�shall�be�conducted�after�the�approval�of�shareholders'�meeting.

(2)Consolidated�Condensed�balance�sheet�-Based�on�IFRS

Unit: NT$ thousands

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Year Item	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years
	2015 (Note1)	2016 (Note1)	2017 (Note1)	2018 (Note1)	2019 (Note1)

Operating revenue	13,122,071	14,073,472	14,750,826	15,382,654	12,219,389
Grossproft	1,300,223	2,214,692	1,689,216	1,976,994	1,391,937
Operating gain/loss	943,507	1,799,784	1,282,663	1,534,999	1,070,680
Non-operating revenue and expenses	(196,350)	(134,036)	(36,525)	12,666	(35,920)
Proftbeforetax	747,157	1,665,748	1,246,138	1,547,665	1,034,760
Netproftofoperatingunit	573,454	1,328,927	984,593	1,186,794	881,756
Gain/loss from non-operating unit	-	-	-	-	-
Netincome(Loss)	573,454	1,328,927	984,593	1,186,794	881,756
Other comprehensive income (incomeaftertax)	144,938	110,558	214,613	(180,486)	(144,142)
Total comprehensive income	718,392	1,439,485	1,199,206	1,006,308	737,614
Netincomeattributableto shareholders of theparent	693,823	1,411,448	1,055,749	1,216,401	882,065
Netincomeattributabletonon- controllinginterest	(120,369)	(82,521)	(71,156)	(29,607)	(309)
Comprehensiveincomeattributable to Shareholders of theparent	840,121	1,529,939	1,273,709	1,036,567	739,732
Comprehensiveincomeattributable to non-controllinginterest	(121,729)	(90,454)	(74,503)	(30,259)	(2,118)
EPS(Operatingunit)	1.31	2.67	2.00	2.30	1.67
EPS(Non-operatingunit)	-	-	-	-	-

Note 1：Certified�by�accountant.

(3)Condensed�Balance�Sheet-by�IFRSs

Unit: NT$ thousands

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Year Item	Year Item	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years
		2015 (Note1)	2016 (Note1)	2017 (Note1)	2018 (Note1)	2019 (Note1)

Current assets		3,391,183	3,692,196	3,096,042	3,385,032	2,657,016
Property, Plant and Equipment		2,946,426	2,853,315	2,724,081	2,667,126	2,693,666
Intangibleassets		12,024	11,882	10,574	9,266	12,098
Other assets		3,962,295	3,861,303	3,900,661	3,673,118	3,250,379
Total assets		10,311,928	10,418,696	9,731,358	9,734,542	8,613,159
Current liabilities	Before distribution	2,761,967	2,344,002	1,738,887	1,904,625	1,343,835
	After distribution	3,289,837	3,505,316	2,583,479	2,960,365	（Note 2）
Non-currentliabi	lities	1,354,356	891,327	704,540	366,598	247,272
Totalliabilities	Before distribution	4,116,323	3,235,329	2,443,427	2,271,223	1,591,107
	After distribution	4,644,193	4,396,643	3,288,019	3,326,963	（Note 2）
Equityattributableto shareholders of theparent		-	-	-	-	-
Capital stock		5,278,698	5,278,698	5,278,698	5,278,698	5,278,698
Capital surplus		84,646	70,339	68,142	60,415	42,418
Retained earnings	Before distribution	1,108,202	1,983,443	1,843,580	2,546,063	2,282,185
	After distribution	580,332	822,129	998,988	1,490,323	（Note 2）
Other equity inte	rest	(275,941)	(149,113)	97,511	(421,857)	(581,249)
Treasury stock		-	-	-	-	-
Non-controlling i	nterest	-	-	-	-	-
Total equity	Before distribution	6,195,605	7,183,367	7,287,931	7,463,319	7,022,052
	After distribution	5,667,735	6,022,053	6,443,339	6,407,579	（Note 2）

Note 1：Certified�by�accountant. Note2：2019�earning�distribution�shall�be�conducted�after�the�approval�of�shareholders'�meeting.

(4)Condensed�Statement�of�Income-by�IFRSsCC

Unit: NT$ thousands

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Year Financial Summary for The Last Five Years
2015 2016 2017 2018 2019
(Note�1) (Note�1) (Note�1) (Note�1) (Note�1)
Item
Operating revenue 12,090,891 13,173,394 14,015,626 14,806,544 11,717,894
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Year Item	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years	Financial Summaryfor The Last Five Years
	2015 (Note1)	2016 (Note1)	2017 (Note1)	2018 (Note1)	2019 (Note1)
Operating revenue	12,090,891	13,173,394	14,015,626	14,806,544	11,717,894
Grossproft	1,168,336	2,149,255	1,642,533	1,976,965	1,349,049
Income from operations	1,015,702	1,932,673	1,418,231	1,695,716	1,137,689
Non-operating unit expenses and income	(159,520)	(199,386)	(107,984)	(126,945)	(108,633)
Netproftbeforetax	856,182	1,733,287	1,310,247	1,568,771	1,029,056
Netproftofoperatingunit	693,823	1,411,448	1,055,749	1,216,401	882,065
Gain/loss of non-operating unit	-	-	-	-	-
Netincome(Loss)	693,823	1,411,448	1,055,749	1,216,401	882,065
Other comprehensive income (incomeaftertax)	146,298	118,491	217,960	(179,834)	(142,333)
Total comprehensive income	840,121	1,529,939	1,273,709	1,036,567	739,732
Netincomeattributableto shareholders of theparent	-	-	-	-	-
Netincomeattributabletonon- controllinginterest	-	-	-	-	-
Comprehensive income attributabletoShareholdersofthe parent	-	-	-	-	-
Comprehensive income attributabletonon-controlling interest	-	-	-	-	-
EPS(Operatingunit)	1.31	2.67	2.00	2.30	1.67
EPS(non-operatingunit)	-	-	-	-	-

Note 1：Certified�by�accountant.

(5)Auditors'�Opinions�for�the�5�years

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Year Name�of�the�firm Accountant Address TEL Opinion
14F., No.111, Sec.2, Unqualified�
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Year	Nameofthefrm	Accountant	Address	TEL	Opinion
		YiLi Ch	14F., No.111, Sec.2,		Unqualifed
2015	Baker Tilly Clock & CO	n-a ou Hsin-Liang Wu	Nanking E.Rd., Taipei City	2516-5255	opinion with amendment
2016	Baker Tilly Clock & CO	Yin-Lai Chou Hsin-Liang Wu	14F., No.111, Sec.2, Nanking E.Rd., Taipei City	2516-5255	Unqualifed opinion with notes
2017	Baker Tilly Clock & CO	Yin-Lai Chou Hsin-Liang Wu	14F., No.111, Sec.2, Nanking E.Rd., Taipei City	2516-5255
2018	Baker Tilly Clock & CO	Yin-Lai Chou Hsin-Liang Wu	14F., No.111, Sec.2, Nanking E.Rd., Taipei City	2516-5255
2019	KPMG	Lin Wu Jason Yin	68F, No.7, Sec.5, Xinyi Road, Taipei City11049	8101-6666

2. Five-Year Financial Analysis

(1)Consolidated�Financial�Analysis�–�Based�on�IFRS�

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Year Financial Summary for The Last Five Years
Item(Note�1) 2015 2016 2017 2018 2019
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Year Item(Note1)	Year Item(Note1)	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years
		2015	2016	2017	2018	2019

Financial structure (%)	DebtRatio	44.64	35.95	30.69	26.57	22.30
	Ratio of long-term capital to property, plant and equipment	178.15	197.02	205.00	196.34	188.22
Solvency(%)	Current ratio	134.92	158.92	176.39	172.55	178.02
	Quickratio	103.78	112.51	112.99	135.71	140.31
	Interestearnedratio(times)	17.81	36.38	44.23	84.59	125.10
Operating performance	Accountsreceivableturnover(times)	19.17	16.01	12.45	13.48	13.56
	Average collection period	19.04	22.79	29.31	27.08	26.92
	Inventoryturnover(times)	18.30	17.62	21.18	19.35	18.94
	Accountspayableturnover(times)	11.69	7.52	8.89	11.14	9.22
	Average days in sales	19.94	20.71	17.23	18.86	19.27
	Property,plantandequipmentturnover(times)	3.09	3.07	3.42	3.70	3.01
	Totalassetsturnover(times)	1.23	1.19	1.30	1.44	1.23
Proftability	Returnontotalassets(%)	5.73	11.55	8.88	11.21	8.97
	Returnonstockholders'equity(%)	9.37	18.80	13.02	15.52	11.80
	Pre-taxincometopaid-incapital(%)	14.15	31.56	23.61	29.32	19.60
	Proftratio(%)	4.37	9.44	6.67	7.72	7.22
	Earningspershare(NT$)	1.31	2.67	2.00	2.30	1.67
Cashfow	Cashfowratio(%)	46.30	57.10	16.63	117.41	52.39
	Cashfowadequacyratio(%)	111.70	166.05	134.23	119.59	135.98
	Cashreinvestmentratio(%)	10.65	7.71	(4.93)	12.95	(0.73)
Leverage	Operating leverage	2.21	1.81	2.11	2.07	2.31
	Financial leverage	1.05	1.03	1.02	1.01	1.01
Analysisofchangesinfnancialratiosofmorethan20%overthepast2fscalyears: 1.The increase in interest coverage ratio was mainly due to the reduction of current interest expenses compared to the previous period. 2.Thedecreaseinproftabilitywasmainlyduetothereductionofcurrentincomecomparedtothepreviousperiod. 3.Thedecreaseincashfowratiowasmainlyduetothereductionofcurrentcashinfowfromoperatingactivitiescomparedtothe previous period. 4.Thedecreaseincashreinvestmentratiowasmainlyduetothereductionofcurrentcashinfowfromoperatingactivitiescomparedto the previous period, and the increase in current cash dividends compared to the previous period.

Note 1: The calculation formula for analyzing the project is as follows:

1.Financial structure

(1)Liabilities�to�Assets�Ratio�-�Total�Liabilities/Total�Assets.�
(2)�Long-term�funds�account�for�Property,�plant�and�equipment�Ratios.�Equity�Total�and�non-current� liabilities)/Property,�plant�and�equipment�Net.�
2.Solvency
(1)�Current�Ratio�s�Current�Assets/Current�Liabilities.�
(2)Quick�Ratio�s�(Current�Assets�-�Inventory�-�Prepaid�Expenses)�/�Current�Liabilities.�
(3)�Interest�protection�multiples�-�net�benefit/current�interest�expense�before�income�tax�and�interest� expense.
3.Ability�to�operate
(1)�eceivables�(including�accounts�receivable�and�notes�receivable�arising�from�business)�Turnover�rate� Net�sales/average�receivables�per�period�(including�accounts�receivable�and�notes�receivable�arising� from�business)�Balance.�
(2)�Average�number�of�days�of�receipt365/�Receivables�turnover.�
(3)Inventory�turnover�s�cost/average�inventory�amount.�
(4)�Amounts�payable�(including�accounts�payable�and�notes�payable�arising�from�business)�Turnover�rate� Cost�of�goods�sold/average�payables�per�period�(including�accounts�payable�and�notes�payable�arising� from�business)�Balance.�
(5)Average�number�of�days�to�sell365/�Inventory�turnover.�

(6)�Property,�plant�and�equipment�Turnover�ratio�-�net�sales/average�Property,�plant�and�equipment�Net.��

(7)Total�asset�turnover�ratio�s�net�sales/average�total�assets.�
4.Profitability

(1)Return�on�Assets�(After-Tax�Profit�and�Loss�-�Interest�Expenses�(1-tax�rate)/Average�total�assets.�

(2)Interest�rate�of�return�-�total�after-tax�profit/average�equity.�
(3)Net�benefit�ratio�-�net�profit/loss�after�tax.�

(4)�Earnings�per�share�Profit�or�loss�attributable�to�the�owner�of�the�parent�company-Special�dividends)/ weighted�average�number�of�shares�outstanding.�

(1)Cash�Flow�Ratio�s�Net�Cash�Flow/Current�Liabilities�for�Operating�Activities.�

(2)�Net�Cash�Flow�Tolerance�Ratio�-�Net�Cash�Flow�from�Last�Five�Years�Operating�Activities/Last�Five� Years�(Capital�expenditures,�inventory�increases,�cash�dividends).�
(3)�Cash�Reinvestment�Ratio�(Net�Cash�Flow�from�Operating�Activities�-�Cash�Dividends)�/�(Gross� property,�plant�and�equipment,�long-term�investment,�other�non-current�assets,�working�capital).�

6.Leverage:

(1)Operating�Leverage�(Net�operating�income�-�variable�operating�costs�and�expenses)/�Business� interests.
(2)Financial�Leverage�-�Operating�Interests/�(Operating�interest�-�interest�expense).

(2)Individual�Financial�Analysis�–�Based�on�IFRS

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Financial Summary for The Last Five Years
Year
Item(Note�1) 2015 2016 2017 2018 2019
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Year Item(Note1)	Year Item(Note1)	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years	Financial Summary for The Last Five Years
		2015	2016	2017	2018	2019

Financial structure (%)	DebtRatio	39.92	31.05	25.11	23.33	18.47
	Ratio of long-term capital to property, plant and equipment	256.24	282.99	293.40	293.57	269.87
Solvency (%)	Current ratio	122.78	157.52	178.05	177.73	197.72
	Quickratio	97.67	104.86	101.83	139.53	153.89
	Interestearnedratio(times)	35.84	62.53	100.21	209.95	1,054.28
Operating performance	Accountsreceivableturnover(times)	24.99	17.70	13.13	13.83	13.65
	Average collection period	14.61	20.62	27.80	26.39	26.73
	Inventoryturnover(times)	28.62	21.13	22.55	20.52	19.40
	Accountspayableturnover(times)	12.27	7.43	8.83	11.08	9.04
	Average days in sales	12.75	17.27	16.18	17.79	18.81
	Property,plantandequipmentturnover(times)	4.57	4.54	5.03	5.49	4.37
	Totalassetsturnover(times)	1.31	1.27	1.39	1.52	1.28
Proftability	Returnontotalassets(%)	7.71	13.84	10.59	12.56	9.62
	Returnonstockholders'equity(%)	12.01	21.10	14.59	16.49	12.18
	Pre-taxincometopaid-incapital(%)	16.22	32.84	24.82	29.72	19.49
	Proftratio(%)	5.74	10.71	7.53	8.22	7.53
	Earningspershare(NT$)	1.31	2.67	2.00	2.30	1.67
Cashfow	Cashfowratio(%)	48.97	74.65	26.17	140.46	84.31
	Cashfowadequacyratio(%)	87.49	141.05	119.54	154.86	138.77
	Cashreinvestmentratio(%)	10.20	8.82	(5.10)	13.20	0.57
Leverage	Operating leverage	1.69	1.50	1.74	1.66	1.90
	Financial leverage	1.02	1.01	1.01	1.00	1.00
Analysisofchangesinfnancialratiosofmorethan20%overthepast2fscalyears: 1.The increase in interest coverage ratio was mainly due to the reduction of current interest expenses compared to the previous period. 2. The decrease in the turnover of property, plant, and equipment was mainly due to the reduction of current sales compared with the previous period. 3.Thedecreaseinproftabilitywasmainlyduetothereductionofcurrentnetincomecomparedtothepreviousperiod. 4.Thedecreaseincashfowratiowasmainlyduetothereductionofcurrentnetcashinfowfromoperatingactivitiescomparedtothe previous period. 5.Cash reinvestment

Note 1: Refer to the calculation of IFRSs.。

3. 2019 Auditor's Committee Report

Auditor's Report

The Board has prepared the 2019 Business Report Financial Statement (separate�and�consolidated)�and�the�earning�distribution�proposal.�The�financial� statement�has�been�verified�by�KPMG�and�the�others�has�been�reviewed�by�the� Auditors Committee of the Company. They've concluded that the documents has been�well�prepared�according�to�related�Laws.

Taiwan Styrene Monomer Corporation

Convener: Chien, Jin-Chen

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M a r . 1 1 . 2 0 2 0

4. 2019 Financial Statement

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5.2019 Individual Financial Statement

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Financial distress happened to the Company and its Associates:

None.

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VII. Review of Financial Conditions, O p e r a t i n g R e s u l t s , a n d R i s k Management

1. Analysis of Financial Status: The reasons of the change of assets, liabilities�within�2�years�and�the�responses�of�the�Company

Unit: Thousand NTD

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Year Difference
2018 2019
Item Amount %
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Year Item	2018	2019	Difference	Difference
			Amount	%

Cash and cash equivalents	2,122,960	1,477,082	(645,878)	(0.30)
Financialassetsatfairvaluethroughproft or loss - current	141,830	203,070	61,240	0.43
Netnotesreceivable	21	33	12	0.57
Netaccountsreceivable	947,584	854,834	(92,750)	(0.10)
Otherreceivables	35,647	3,290	(32,357)	(0.91)
Current income tax assets	181	73	(108)	(0.60)
Inventories	709,853	433,637	(276,216)	(0.39)
Prepayments	154,522	162,264	7,742	0.05
Non-currentassetsheldforsale(ordisposal group)-Net	-	39,777	39,777	#DIV/0!
Other current assets	308	524	216	0.70
Otherfnancialassets-Current	16,937	45,958	29,021	1.71
Total current assets	4,129,843	3,220,542	(909,301)	(0.22)
Financialassetsatfairvaluethroughproft or loss - noncurrent	17,144	13,650	(3,494)	(0.20)
Financial assets at fair value through other comprehensive income - noncurrent	304,917	504,147	199,230	0.65
Investments accounted for using equity method	1,587,855	1,242,335	(345,520)	(0.22)
Property, plant,and equipment	4,133,895	3,982,140	(151,755)	(0.04)
Right-of-use assets	-	22,630	22,630	#DIV/0!
Investmentproperty	144,361	139,091	(5,270)	(0.04)
Intangibleassets	16,099	12,098	(4,001)	(0.25)

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Year Difference
2018 2019
Item Amount %
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Year Item	2018	2019	Difference	Difference
			Amount	%

Deferred income tax assets	33,172	37,068	3,896	0.12
Prepayments for equipment	20,439	-	(20,439)	(1.00)
Other long-term investments	38,436	34,681	(3,755)	(0.10)
Refundabledeposits	7,670	5,032	(2,638)	(0.34)
Other noncurrent assets	76,215	90,928	14,713	0.19
Total noncurrent assets	6,380,203	6,083,800	(296,403)	(0.05)
Total assets	10,510,046	9,304,342	(1,205,704)	(0.11)
Short-termborrowings	312,885	317,500	4,615	0.01
Contractliabilities-current	128,851	40,531	(88,320)	(0.69)
Notespayable	9,678	11,381	1,703	0.18
Accountspayable	1,229,326	1,097,577	(131,749)	(0.11)
Otherpayables	344,116	227,973	(116,143)	(0.34)
Currenttaxliability	243,073	69,184	(173,889)	(0.72)
Prepaid rent - current	-	7,903	7,903	#DIV/0!
Liabilitiesdirectlyrelatedtononcurrent assetsheldforsale(ordisposalgroup)	-	6,248	6,248	#DIV/0!
Long-termliabilities-currentportion	115,164	26,284	(88,880)	(0.77)
Othercurrentliabilities	10,270	4,473	(5,797)	(0.56)
Totalofcurrentliabilities	2,393,363	1,809,054	(584,309)	(0.24)
Long-termborrowings	140,902	3,519	(137,383)	(0.98)
Deferredtaxliabilities	173,509	175,634	2,125	0.01
Leaseliabilities-noncurrent	-	11,110	11,110	#DIV/0!
Netdefnedbeneftliability-noncurrent	74,126	64,445	(9,681)	(0.13)
Othernoncurrentliabilities	10,732	11,320	588	0.05
Totalnoncurrentliabilities	399,269	266,028	(133,241)	(0.33)
Totalliabilities	2,792,632	2,075,082	(717,550)	(0.26)
Share capital	5,278,698	5,278,698	-	0.00
Capital surplus	60,415	42,418	(17,997)	(0.30)
Retained earnings	2,546,063	2,282,185	(263,878)	(0.10)
Exchange differences from the translation of fnancialstatementsofforeignoperations	(2,298)	(10,913)	(8,615)	3.75
Unrealized financial assets profits at fair value through other comprehensive income	(419,559)	(570,336)	(150,777)	0.36
Non-controllinginterests	254,095	207,208	(46,887)	(0.18)
Total equity	7,717,414	7,229,260	(488,154)	(0.06)

236

The main reasons for the increase or decrease of more than 20% and the total assets of 1% are:

1.�The�decrease�in�cash�and�cash�equivalents�is�mainly�due�to�the�decrease�in�2019�profit�before�tax�and� acquisition�of�equipment,�and�the�distribution�of�cash�dividends.
The decrease in inventories is mainly due to a decrease in inventories of raw materials and semifinished�goods�in�this�period�compared�to�the�previous�period.
The decrease in current assets is mainly due to the decrease in cash and cash equivalents and inventories in this period compared to the previous period.
4.�The�increase�in�financial�assets�at�fair�value�through�other�comprehensive�income�-�noncurrent�and� the decrease in investments accounted for using equity method are mainly due to the fact that the Company had not recognized the capital increase of the participating affiliates in accodance with the percentage of shares held, resulting in a decrease in percentage of shareholding. Therefore, investments�accounted�for�using�equity�method�is�reclassified�to�financial�assets�at�fair�value�through� other comprehensive income - noncurrent.
5.�The�decrease�in�other�payables�is�mainly�due�to�a�decrease�in�salary�payable�in�this�period�compared� to the previous period.
6.�The�decrease�in�current�tax�liability�is�mainly�due�to�a�decrease�in�net�profit�before�tax�in�this�period� compared to the previous period.
7.�The�decrease�in�current�liabilities�is�mainly�due�to�the�decrease�in�other�payables�and�current�tax� liability�in�this�period�compared�to�the�previous�period.
8.�The�decrease�in�long-term�borrowings�and�non-current�liabilities�is�mainly�due�to�the�repayment�of� debt.
9.�The�decrease�in�liabilities�is�mainly�due�to�the�decrease�in�current�liabilities�and�noncurrent�liabilities� in this period compared to the previous period.
10.�The�increase�in�Unrealized�financial�assets�profits�at�fair�value�through�other�comprehensive�income� is�mainly�due�to�affiliated�enterprises.
As total other noncurrent assets, total assets, and total equity have not meet the criteria for analysis, the description of the changes thereof is not provided.

237

Analysis of Operation Results: The main reasons and expected sales volume of the significant changes in operating income, operating�net�profit�and�net�profit�before�tax�in�the�last�two�years� may�affect�the�company's�future�financial�business�and�plan�for�the� response.

Unit: thousand NTD

Years Item	2018	2019	Difference	Difference
			Amount	%
Operatingincome	15,382,654	12,219,389	(3,163,265)	(20.56)
Operatingcosts	13,405,660	10,827,452	(2,578,208)	(19.23)
Netoperatinggrossproft(loss)	1,976,994	1,391,937	(585,057)	(29.59)
Operatingexpenses	441,995	321,257	(120,738)	(27.32)
Operatingproft(loss)	1,534,999	1,070,680	(464,319)	(30.25)
Non-operatingincome and expenses	12,666	(35,920)	(48,586)	383.59
Netproftbeforetax(netloss)	1,547,665	1,034,760	(512,905)	(33.14)
Income tax expenses	360,871	153,004	(207,867)	(57.60)
Netproft(loss)fortheperiod	1,186,794	881,756	(305,038)	(25.70)
Otherconsolidated(loss)gains-net	(180,486)	(144,142)	36,344	(20.14)
Totalcomprehensiveincome(loss) for the currentperiod	1,006,308	737,614	(268,694)	(26.70)

The main reasons for the increase or decrease of more than 20% and the total assets of 1% are:

1.�The�decrease�in�operating�gross�profit,�operating�profit�and�net�profit�before�tax�is�mainly�due�to�the� decrease in 2019 sales price of Styrene Monomer.
The decrease in tax expenses, net profit for the period and comprehensive income for the current period�is�mainly�due�to�the�decrease�in�net�profit�before�tax�in�this�period.

238

of�the�current�year,�improvement�plans�for�insufficient�liquidity�and� the�analysis�for�cash�flows�in�the�future�year.
Unit: thousand NTD

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Year Difference
2018 2019
Item Amount %
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Year Item	2018	2019	Difference	Difference
			Amount	%

Operatingactivities	2,810,129	947,800	(1,862,329)	(66.27)
Investingactivities	(74,504)	(289,729)	(215,225)	288.88
Financingactivities	(1,642,168)	(1,274,285)	367,883	(22.40)
Foreign exchange impact amount	(841)	81	922	(109.63)
Netcashinfow(outfow)	1,092,616	(616,133)	(1,708,749)	(156.39)
Analysis on changes: 1. The decrease in cash inflow from operating activities is mainly due to a decrease in 2019 net profit beforetax. 2.Theincreaseincashoutfowfrominvestingactivitiesismainlyduetotheincreaseinacquisitionof property, plant and equipment in 2019. 3. The decrease in cash outflow from financing activities is mainly due to the increase of short-term borrowingsin2019.

(2)�Improvement�plans�for�insufficient�cash�liquidity:�No�such�matter.

Unit: thousand NTD

Beginning cash balance	Expected cash	Expected		LeverageofCashDefcit	LeverageofCashDefcit
	fowfrom operating activities for the wholeyear	cashoutfow from investing activities for the wholeyear	Cash surplus (defcit) +	Investment Plans	Financing Plans
1,477,082	229,449	(1,159,872)	546,659
Analysisofchangesincashfowinthisyear: 1.Operatingactivities:Thecashinfowfromoperatingactivitiesisexpectedtogeneratedfrom2020 operating revenue. 2.Investmentactivities:Theinvestmentsandfnancialassetsaremainlyrelatedtocapitalexpenditures arisingfromproductiondemand,capitalloansandsubsidiariesanddisposalsusingequitymethods. 3.Financingactivities:Itisexpectedtobeusedtotodistributecashdividendsandbuybackshares.

239

4.�The�effect�upon�financial�operations�of�any�major�capital�expenditures� during�the�most�recent�fiscal�year:�None.�
The company's reinvestment policy for the most recent fiscal year, the�main�reasons�for�the�profits/losses�generated�thereby,�the�plan�for� improving�re-investment�profitability,�and�investment�plans�for�the� coming year:

The Company's reinvestment policy for the most recent fiscal year was to eliminate weak and retain strong.�The�Company�aims�to�retain�investees�with�robust�and�good�performance,�and�deal�with�noncore�investment�projects�in�a�timely�manner.��The�profit�and�loss�of�investment�depends�on�the�boom�and� bust�of�the�industry�in�which�the�investment�object�is�located,�and�the�domestic�economic�situation�and� business�strategy,�resulting�in�profit�or�loss.�In�the�future,�the�company�would�implement�the�management� system, and adhere to a more positive attitude to supervise the company with poor performance, in the hope�that�the�loss�of�the�external�investment�can�turn�into�profit.

6.Risk matters and assessment:

(1)�The�effect�upon�the�company's�profits/losses�of�interest�and�exchange�rate�fluctuations�and� changes�in�the�inflation�rate,�and�response�measures�to�be�taken�in�the�future:
1.Interest:
In�response�to�the�possible�changes�in�interest�rates,�the�Company�will�adjust�the�allocation�of�long-� and�short-term�loans�and�negotiate�with�financial�institutions�for�better�interest�rates.�In�the�future,�the� Company�will�continue�to�observe�the�trend�of�interest�rates�and�adjust�the�position�of�long-�and�shortterm�borrowings�in�order�to�mitigate�the�impact�of�interest�rate�changes.
2.Exchange rate:
The selling price of our products and purchase price of raw materials are denominated in US dollars. We will�closely�observe�the�exchange�rate�fluctuations�to�alleviate�the�impact�of�exchange�rate�fluctuations� on�the�company's�profit�and�loss.
The�consumer�price�index�(CPI)�in�2019�increased�by�0.56%�on�average�compared�with�that�in�2018,� according to data from the Directorate General of Budget, Accounting and Statistics under the Executive Yuan.��In�the�future,�in�response�to�inflation,�the�company�will�continue�to�strive�to�reduce�production� and marketing costs, pay close attention to the supply and demand of raw materials and prices, and flexibly�adjust�the�inventory�in�an�effort�to�lessen�the�impact�of�price�fluctuations�on�the�company's� operations.

240

(2)�The�company's�policy�regarding�high-risk�investments,�highly�leveraged�investments,�loans�to� other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses�generated�thereby;�and�response�measures�to�be�taken�in�the�future:
The Company is not engaged in high-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions
(3)�Research�and�development�work�to�be�carried�out�in�the�future,�and�further�expenditures� expected for research and development work:
For�the�R&D�plan,�please�refer�to�business�content�in�V.�Operation�Overview�in�the�annual�report,�and�the� plan�has�been�conducted�as�scheduled.
(4)�Effect�on�the�company's�financial�operations�of�important�policies�adopted�and�changes�in�the� legal�environment�at�home�and�abroad,�and�measures�to�be�taken�in�response: There�were�no�significant�policies�adopted�and�changes�in�the�legal�environment�affecting�the�Company's� financial�operations�in�2019.
(5)�Effect�on�the�company's�financial�operations�of�developments�in�science�and�technology�as� well�as�industrial�change,�and�measures�to�be�taken�in�response:
Although the Company is in a very mature industry, there is no revolutionary technology to produce alternative�products,�but�the�Company�will�still�take�active�action�to�improve�the�process�efficiency,� research and develop new production technology of related products, enhance the added value of products, in an attempt to increase the competitiveness of the Company.
(6)�Effect�on�the�company's�crisis�management�of�changes�in�the�company's�corporate�image,�and� measures�to�be�taken�in�response:
The�Company�adopts�a�prudent,�conservative�business�strategy,�and�fulfills�its�responsibility�of�safety�and� environmental�protection,�so�as�to�establish�a�pragmatic�corporate�image.�At�present,�there�is�no�change� in corporate image. The Company continuously strengthens the crisis management consciousness of the management team, and prepares preventive measures to avoid the occurrence of the crisis.
(7)�Expected�benefits�and�possible�risks�associated�with�any�merger�and�acquisitions�(M&A),�and� mitigation�measures�being�or�to�be�taken: The company has no ongoing M&A operations.
(8)�Expected�benefits�and�possible�risks�associated�with�any�plant�expansion,�and�mitigation� measures�being�or�to�be�taken:

The company has no ongoing plant expansion operations.

(9)�Risks�associated�with�any�consolidation�of�sales�or�purchasing�operations,�and�mitigation� measures�being�or�to�be�taken:

Purchase:

The primary raw material supplier of the Company is CPC Corporation, Taiwan. Both sides sign regular contracts and trade with each other according to the agreed pricing formula and quantity. The supply is

241

stable;��even�if�reduced�occasionally,�it�can�be�purchased�and�supplemented�immediately�from�the� international market for adequate supply of the raw materials needed for production. Sales:

As�the�Company's�sales�customers�remain�stable,�it�strengthens�customer�service�to�stabilize�the� domestic market

(10)�Effect�upon�and�risk�to�the�company�in�the�event�a�major�quantity�of�shares�belonging� to a director, supervisor, or shareholder holding greater than a 10 percent stake in the company�has�been�transferred�or�has�otherwise�changed�hands,�and�mitigation�measures� being�or�to�be�taken:
There�is�no�event�of�a�major�quantity�of�shares�belonging�to�a�director,�supervisor,�or�shareholder� holding�greater�than�a�10�percent�stake�in�the�company�being�transferred�or�otherwise�changed� hands in the year 2019.
(11)�Effect�upon�and�risk�to�company�associated�with�any�change�in�governance�personnel�or� top�management,�and�mitigation�measures�being�or�to�be�taken:�
The�shareholder�status�of�the�Company�is�stable�in�2019�and�as�of�the�printing�date�of�the�annual� report.
(12)�Litigious�and�non-litigious�matters.�List�major�litigious,�non-litigious�or�administrative� disputes�that:�(1)�involve�the�company�and/or�any�company�director,�any�company� supervisor,�the�general�manager,�any�person�with�actual�responsibility�for�the�firm,� any major shareholder holding a stake of greater than 10 percent, and/or any company or�companies�controlled�by�the�company;�and�(2)�have�been�concluded�by�means�of� a�final�and�unappealable�judgment,�or�are�still�under�litigation.�Where�such�a�dispute� could materially affect shareholders' equity or the prices of the company's securities, the annual report shall disclose the facts of the dispute, amount of money at stake in the dispute, the date of litigation commencement, the main parties to the dispute, and the status�of�the�dispute�as�of�the�date�of�publication�of�the�annual�report:
There are no major litigious, non-litigious or administrative disputes.
(13)Other�important�risks,�and�mitigation�measures�being�or�to�be�taken:
In 2017, the Company carried out security risk assessment and analysis, and, with overall planning and�briefing�by�more�than�three�companies,�commissioned�Jetwell�Computer�Co.,�Ltd.�to�conduct� the "information security construction" project. The system was installed and went live in November�2017.�The�Company�also�held�a�security�advocacy�meeting�at�the�Kaohsiung�plant�and� Taipei headquarters. The system is working well so far and can meet future security requirements. Therefore,�after�the�above�assessment�and�response,�the�security�risk�should�not�be�a�major� operational risk of the Company.

7. Other important matters: None.

242

VIII. Special Disclosure

1.Summary�of�Affiliated�Companies

(1)Consolidated�Business�Report

1.Organization�chart�of�affiliated�company

==> picture [334 x 153] intentionally omitted <==

----- Start of picture text -----

108.12.31
Taiwan Styrene Monomer Corporation 1310
Asia�Carbons YuShen YuanHsin RonFu TienLai LeiTing
34.76% 99.99% 100% 89.16% 65.07% 91.40%
Grand Capital Kun Shan TienLai Industrial
97.22% International 50%
62.03%
Kunshan YuFU Kunshan JiaAn
100% 100%
----- End of picture text -----

2.Information�of�affiliated�companies

Name	Date of Incorporation	Address	Paid-in Capital (thousand dollars)	Business scope
LeiTing Construction Inc.	79.04.20	8F-1, No.6, Sec.1, Roosevelt Rd.,Taipei City	NT69,000	Construction and lease
Yangmingshan Tien Lai Resort & Spa	86.7.28	No.1-6.7.9, Minliu Rd., Jinshan Dist.,New Taipei City	NT397,500	Hotel Management
RonFu Inc.	71.05.11	8F-1, No.6, Sec.1, Roosevelt Rd.,Taipei City	NT250,000	Apartment management
Yuan-Shin Technological Material Co.,Ltd.	93.02.11	8F-1, No.6, Sec.1, Roosevelt Rd., Taipei City	NT50,000	Manufacturing of chemicals

243

==> picture [337 x 58] intentionally omitted <==

----- Start of picture text -----

Paid-in
Date of Capital
Name Address Business scope
Incorporation (thousand�
dollars)
Apartment
----- End of picture text -----

Name	Date of Incorporation	Address	Paid-in Capital (thousand dollars)	Business scope
				Apartment
Yu-Sheng Development Co., Ltd.	90.08.20	8F-1, No.6, Sec.1, Roosevelt Rd., Taipei City	NT1,039,912	management and publicsection development
TienLai Industrial Inc.	92.06.20	9F, No.6, Jinshan S. Rd., Taipei City	NT10,000	Piping engineering
Kun Shan International Ltd.	89.07.17	Seychelles	US5,969	Reinvestment
YuFu Education Tech. Counsulting	92.03.28	No.255, HsuieYuan Rd., Kunshan City, Jiangsu Province	US3,468	Education advisement, It work, Software advisement; develop,build, and sale of property, property management
Grand Capital Co., Ltd.	89.07.17	Seychelles	US2,698	Reinvestment
AsiaCarbons& Technology Inc.	98.05.25	8F-1, No.6, Sec.1, Roosevelt Rd., Taipei City	NT100,087	CarbonR&Dand sales of related products
JiaAn Education Tech. Counsulting	100.05.27	No.255, HsuieYuan Rd., Kunshan City, Jiangsu Province	US3,242	Education advisement, It work, Software advisement; develop,build, and sale of property, property management

244

3.�Director,�Supervisor�and�General�Manager�of�affiliated�company

==> picture [337 x 37] intentionally omitted <==

----- Start of picture text -----

Shareholding status
Name Title Representative
Shares %
----- End of picture text -----

Name	Title	Representative	Shareholdingstatus	Shareholdingstatus
			Shares	%

LeiTing Construction Inc.	Chairperson	Taiwan Styrene Monomer Corporation Representative: Jia-Yu Wang	6,306,400	91.40%
	Director	Taiwan Styrene Monomer Corporation Representative: Jason Chou	6,306,400	91.40%
	Director	Taiwan Styrene Monomer Corporation Representative: Cheng-Hsin Lu	6,306,400	91.40%
	Supervisor	Pi-Shen Huang
	General Manager	Jia-Yu Wang
Yangmingshan Tien Lai Resort & Spa	Chairperson	Taiwan Styrene Monomer Corporation Representative: Wen-Yuan Lin	25,865,618	65.07%
	Vice Chairperson	Wen-Ton Hsu	3,622,500	9.11%
	Director	Taiwan Styrene Monomer Corporation Representative: Pao-Yuan Chen	25,865,618	65.07%
	Director	Taiwan Styrene Monomer Corporation Representative: Yi-ChingWu	25,865,618	65.07%
	Director	Taiwan Styrene Monomer Corporation Representative:Hong-GuangCuei	25,865,618	65.07%
	Director	Taiwan Styrene Monomer Corporation Representative: Jia-Yu Wang
	Director	Yi-Chi Chiu	3,622,500	9.11%
	Supervisor	Yu-Sheng Development Co., Ltd. Representative: Min-De Chen	4,807,774	12.10%
	Supervisor	Yu-Sheng Development Co., Ltd. Representative: Mei-Yin Chiu	4,807,774	12.10%
	General Manager	Hong-Guang Cuei

245

==> picture [337 x 50] intentionally omitted <==

----- Start of picture text -----

Shareholding status
Name Title Representative
Shares %
Chairperson [Taiwan Styrene Monomer Corporation] 22,289,256 89.16%
----- End of picture text -----

Name	Title	Representative	Shareholdingstatus	Shareholdingstatus
			Shares	%
	Chairperson	Taiwan Styrene Monomer Corporation	22,289,256	89.16%
RonFu Inc.		Representative: Chi-Shen Jiao
	Director	Director Taiwan Styrene Monomer Corporation Representative: Jia-Pin Su	22,289,256	89.16%
	Director	Taiwan Styrene Monomer Corporation Representative: Hon-Ren Wang	22,289,256	89.16%
	Director	Taiwan Styrene Monomer Corporation Representative: Cheng-Hsin Lu	22,289,256	89.16%
	Director	LeiTing Construction Inc. Representative: Jia-Yu Wang	2,461,351	9.85%
	Supervisor	YuJie Investment Inc. Representative: Jason Chou	144,094	0.58%
	General Manager	Chi-Shen Jiao
Yuan-Shin Technological Material Co., Ltd.	Chairperson	Taiwan Styrene Monomer Corporation Representative: Pao-Yuan Chen	5,000,000	100%
	General Manager	Pao-Yuan Chen
Yu-Sheng Development Co., Ltd.	Chairperson	Taiwan Styrene Monomer Corporation Representative: Jason Chou	103,975,894	99.99%
	Director	Taiwan Styrene Monomer Corporation Representative: Pao-Yuan Chen	103,975,894	99.99%
	Director	Taiwan Styrene Monomer Corporation Representative: Cheng-Hsin Lu	103,975,894	99.99%
	Supervisor	Meihao Industrial Inc. Representative: Mei-YIn Chiu,	14,584	0.01%
	General Manager	Jason Chou
TienLai Industrial Inc.	Chairperson	Yu-Sheng Development Co., Ltd. Representative: Pi-Shen Huang	500,000	50%
	Director	Wen-Ton Hsu
	Director	Hsio-PingChen	450,000	45%
	Supervisor	HeKan Construction Representative: Guan-PingHon	50,000	5%
	Supervisor	Den-Kai Kan
Kun Shan International Ltd.	Chairperson	Yu-Sheng Development Co., Ltd. Representative: PaggyChen		62.03%
	Director	Yu-Sheng Development Co., Ltd. Representative: Cheng-Hsin Lu		62.03%

246

==> picture [337 x 49] intentionally omitted <==

----- Start of picture text -----

Shareholding status
Name Title Representative
Shares %
[Kun Shan International Ltd.] 100.00%
----- End of picture text -----

Name	Title	Representative	Shareholdingstatus	Shareholdingstatus
			Shares	%
	Chairperson	Kun Shan International Ltd.		100.00%
Kunshan Yufu Technology Education Consulting Co., Ltd.		Representative: Sun,Chi-Yao
	Director	Kun Shan International Ltd. Representative: Cheng-Hsin Lu		100.00%
	Director	Kun Shan International Ltd. Representative: Jason Chou		100.00%
	Supervisor	Kun Shan International Ltd. Representative: Mei-Yin Chiu		100.00%
	General Manager	Paggy Chen
Grand Capital Co., Ltd.	Director	Yu-Sheng Development Co., Ltd. Representative: Cheng-Hsin Lu		97.22%
	Director	Yu-Sheng Development Co., Ltd. Representative: Jason Chou		97.22%
	Director	Yu-Sheng Development Co., Ltd. Representative: PaggyChen		97.22%
AsiaCarbons& TechnologyInc.	Supervisor	Taiwan Styrene Monomer Corporation Representative: Hsiang-Gan Cheng
JiaAn Education Tech. Counsulting	Chairperson	Kun Shan International Ltd. Representative: Chung-Chien Chang		100.00%
	Director	Kun Shan International Ltd. Representative: Jia-Pin Su		100.00%
	Director	Kun Shan International Ltd. Representative: Jian Yao		100.00%
	Director	Kun Shan International Ltd. Representative: Chun-Chia Chang		100.00%
	Supervisor	Kun Shan International Ltd. Representative: Kun-Hui Lin		100.00%
	General Manager	Guang-De Wang

4.�Shareholder�as�the�person�presumed�to�be�controlled�and�subordinated:�no�such�thing.
5.�The�industry�covered�by�the�business�of�the�whole�relationship�enterprise:

(1)�The�business�of�the�Company�and�the�company's�related�enterprises�mainly�includes� petrochemical, engineering, general investment industry, hotel services, medical equipment services and electronic products sales.

(2)�The�company�is�mainly�engaged�in�styrene�monomer,�the�production�and�sale�of�diethyebenzene.�

247

6.2019�Operational�Highlights�of�the�subsidiaries�of�the�company� Unit: thousand dollars

==> picture [337 x 34] intentionally omitted <==

----- Start of picture text -----

Operating
Name Paid-in Asset Liability Net worth [Operating ] Operating Gain/loss EPS
Capital revenue Gain/loss (after�tax)
(after�tax)
----- End of picture text -----

Name	Paid-in Capital	Asset	Liability	Net worth	Operating revenue	Operating Gain/loss	Operating Gain/loss (aftertax)	EPS (aftertax)

LeiTing Construction Inc.	69,000	51,237	6,248	44,989		(6,232)	(4,637)	(1.33)
Yangmingshan Tien Lai Resort & Spa	397,500	782,997	243,616	539,381	188,520	30,916	24,174	0.61
RonFu Inc.	250,000	338,254	221,845	116,409	205,755	(14,750)	（14,469）	(0.58)
Yuan-Shin Technological Material Co.,Ltd.	50,000	41,851	244	41,607		(4,288)	(1,045)	(0.21)
Yu-Sheng Development Co., Ltd.	1,039,912	738,311	2,343	735,968	39,177	(3,732)	(185,507)	(1.78)
TienLai Industrial Inc.	10,000	9,889	3,117	6,772	5,860	(1,396)	(988)	(0.99)
Kun Shan International Ltd.	195,157	219,136	6,888	212,248	13,372	(460)	2,131
Grand Capital Co., Ltd.	90,590	75,174		75,174		(53)	(74)
AsiaCarbons&Technology Inc.	100,087	5,793	413	5,380	4,156	(79,541)	(81,682)	(3.39)

Note�1:�USD:�TWD=1:�29.98/�USD:�RMB=1:�6.9762

248

7.�Consolidated�financial�statement�declaration�of�Taiwan�Styrene�Monomer�Corporation�and�subsidiaries�

Declaration

We�hereby�certify�that

The�information�of�the�companies�that�should�be�included�when�preparing�the� consolidated�financial�reports�for�the�affiliated�enterprises�according�to�"Criteria� Governing�Preparation�of�Affiliation�Reports,�Consolidated�Business�Reports�and� Consolidated Financial Statements of Affiliated Enterprises"and the companies that�should�be�included�when�preparing�the�consolidated�financial�reports�for�the� parent�and�subsidiary�companies�according�to�International�Financial�Reporting� Standards�No.�10�for�fiscal�year�2019�(from�January�1�to�December�31,�2019)�for� our�company�are�the�same.�The�relevant�information�required�to�be�disclosed�on�the� consolidated�financial�reports�of�the�affiliated�company�has�been�disclosed�on�the� consolidated�financial�reports�for�the�parent�and�subsidiary�companies.�Therefore,� the�consolidated�financial�reports�won't�be�prepared�separately.

Name of the Company:Taiwan Styrene Monomer Corporation Responsible�Person:�Wen-Yuan�Lin

Mar.11, 2020

249

�(2)Relationship�Report:�None.

Private Placement Securities in the Most Recent Years as of the date�of�the�publishing�of�the�report:�None.
3.�The�Shares�in�the�Company�Held�or�Disposed�of�by�Subsidiaries�as� of�the�date�of�the�publishing�of�the�report:�None.
4.Other necessary supplementary item: None.

IX. Items which have material impact on shareholders' equity or prices of securities specified in Sec. 2, Paragraph 3, Article 36 of the Securities and Exchange Law As of the date of the publishing of the report: None.

250

AI assistant

T.S.M.C. — Annual Report 2019

51769_rns_2020-06-02_4fed43bd-d70b-40fd-be73-699a07cc4e03.pdf

2019

Taiwan Styrene Monomer Corporation

I.Spokesperson

II.Headquarter

III.Stock Transfer Agent

IV.CPA

KPMG

I. Letter to Shareholders

Dear shareholders,

1. 2019 Business Report:

3. Future Development Strategy of the Company:

4. Impact of External Competitive Environment, Regulatory Environment and Overall Business Environment

II. Company Profile

1.Date of Incorporation:

2.Company History

III. Corporate Governance Report

1. Organization

2. Directors, Supervisors and Management Team

(2)�Newly�elected�directors�

2.-(2)�Major�shareholders�of�the�Company's�major�institutional�shareholders������������Jan.�2,�2019�(before�the�election)

3.�Professional�qualifications�and�independence�analysis�of�directors�and�supervisors�(2)�����

4. 2019 Manager Compensation Unit: NT$ thousands

4. Implementation of Corporate Governance:

(1)�Board�operation�

Other�mentionable�items:

(2)�Audit�Committee�(or�Attendance�of�Supervisors�at�Board�Meetings)

(6)Implementation�of�consumer�or�customer�protection�policies

(4)�Composition,�Responsibilities�and�Operations�of�the�Remuneration�Committee

���(1)Information�of�the�committee�members

(1)Member�information

3. Other notes:

�(5)�Corporate�Social�Responsibility

(6)Ethical�Corporate�Management�status�and�implementation�of�the�Company

Taiwan Styrene Monomer Corporation Internal Control Declaration

3.Resolutions

5. Information Regarding Fee

(1)Information�Regarding�Fee

Table�1

6. Alternation of CPA: Yes.

(1)�Former�CPA

(2)Regarding�the�successor�CPA

2.Equity transfer: None

3. Shares Pledge with Related Parties: None

9. Relationship among the Top Ten Shareholders

IV. Capital Overview

1. Capital and Shares

2.Information for Shelf Registration: None

(3)�Shareholding�Distribution�Status

(5)�Market�Price,�Net�Worth,�Earnings,�and�Dividends�per�Share�for�the�recent�2�years

(6)�Dividend�Policy�and�Implementation�Status

(8)�Compensation�of�employees,�directors,�and�supervisors:

(9)�Buyback�of�Treasury�Stock�

V. Operational Highlights

1.Business content

(1)Scope�of�Business

(2)�Industry�overview

3.Development trend and competition of styrene products

(3)�Overview�of�technology�and�R&D

(4)�Long-term�and�short-term�business�development�plan

2.Overview of markets and production and marketing

(1)Market�analysis

4.Expected sales volume

(2)Important�uses�and�manufacturing�processes�of�major�products

(3)Main�material�supply�status

(4)Key�supplier/trade�debtor�information

(5)�Production�value�of�the�last�two�years��

6)�Sales�value�of�the�last�two�years�

3. Employee information for the last two years up to the date of publication�of�the�annual�report

4. Information on environmental protection, industrial safety and health expenditure

5.Labor-management�relations

C. Early retirement

(4)Other:

6. Material contracts

7.Investees:

VI. Financial Status

1. Balance Sheet and Composite Income Sheet for the last 5 years

(2)Consolidated�Condensed�balance�sheet�-Based�on�IFRS

T.S.M.C. Annual Report 2019

2.-(2)�Major�shareholders�of�the�Company's�major�institutional�shareholders��Jan.�2,�2019�(before�the�election)

3.�Professional�qualifications�and�independence�analysis�of�directors�and�supervisors�(2)��

��(1)Information�of�the�committee�members