Question 1

Company Policy

Accepted Answer

- Quality Policy -

To satisfy market demand with quality advantage To enhance customer satisfaction with technical expertise To strengthen competitiveness with sound management ;

- Environmental Policy -

Compliance with laws and regulations, full participation, pollution prevention Environmental protection, green products, continuous improvement

Question 2

Head of Corporate Governance

Accepted Answer

The Company's corporate governance units are the General Manager's Office and the Finance Department. Approved by the Board of Directors on 111.08.09, the Company has designated Manager Hsu, Changcheng Xu, the head of the Finance Department, as the Head of Corporate Governance to protect the shareholders' rights and interests and to strengthen the functions of the Board of Directors. Mr. Hsu has more than 11 years of experience as an accounting executive in a public company. The main duties of the head of corporate governance are to handle matters related to board of directors' and shareholders' meetings in accordance with the law, prepare minutes of board of directors' and shareholders' meetings, assist directors and supervisors in assuming their positions and continuing their education, provide directors and supervisors with information necessary for the execution of their business, and assist directors and supervisors in complying with the laws and regulations, etc., and to further his studies as required, and he has passed the test for the head of corporate governance. The status of business execution is as follows:

1. assisting the Directors and Independent Directors in the performance of their duties, providing necessary information and arranging for further studies:

(1) Provide the Board of Directors with information on the latest amendments to laws and regulations related to the Company's fields of operation and corporate governance, and update them from time to time.

(2) Reviewing the confidentiality level of relevant information and providing the information required by the Directors to maintain smooth communication between the Directors and the Heads of Departments.

(3) When the Independent Directors, in accordance with the Code of Corporate Governance Practices, need to understand and discuss the Company's related business with the Head of Internal Audit and the Certified Public Accountants.
Assists in scheduling related meetings.

(4) To assist Board members in the preparation and organization of an annual continuing education program.

Assisting the Board of Directors and Shareholders in their proceedings and resolutions on compliance matters:

(1) To report to the Board of Directors, the Independent Directors, the Supervisors or the Audit Committee on the status of the Company's corporate governance operations, and to confirm that the Company's shareholders' meetings and Board of Directors' meetings have been convened.

(2) To assist and remind the members of the Board of Directors of the statutes under which formal resolutions of the Board of Directors should be made.

(3) Important resolutions of the Board of Directors are published on Market Observation Post System (MOPS) after the Board of Directors' meeting for investors' reference.

3. to draw up the agenda of the Board of Directors' meetings, notify the Board members 7 days before the meeting, provide relevant information on the topics of the meeting, and remind them of the need to avoid the interests in advance.
and to complete the Directors' Minutes within twenty days of the Board meeting.

4. To register the date of the shareholders' meeting in accordance with the law, and to prepare the notice of the meeting, the meeting manual, and the minutes of the meeting within the statutory period, and to publish them on the public information website.
Testing Station; Amendment of the Articles of Association or re-election of directors, the relevant changes in the registration business.

FY112 Corporate Governance Executive Refresher FY111 Corporate Governance Executive Refresher FY110 Corporate Governance Executive Refresher 109 FY Corporate Governance Executive Refresher FY108 Corporate Governance Executive Refresher

Question 3

Corporate governance operations

Accepted Answer

The part-time corporate governance unit of the Company is the General Manager's Office and the Finance Department. The head of the Finance Department is also responsible for corporate governance-related matters, and his/her main duties are as follows:

To develop and plan the appropriate corporate system and organizational structure to promote the independence of the board of directors, the transparency of the company, the implementation of internal audit and internal control, and compliance with relevant laws and regulations.
Planning and preparation of the agenda of the Board of Directors meeting, notify the directors seven days prior to the meeting, provide relevant information of the meeting, so as to facilitate the directors to understand the content of the relevant issues; if the content of the issue involves the interested parties, and should be appropriate to avoid the situation, will be given to the relative people to remind them in advance; after the meeting of the Board of Directors meeting within 20 days of the production of the minutes of the Board of Directors meeting, and to provide them to the directors.
To register the date of the shareholders' meeting every year within the period prescribed by law, and to prepare and announce the notice of meeting, meeting manual, annual report and minutes of the shareholders' meeting before the deadline, including but not limited to the re-election of directors and supervisors, and to announce and handle the related matters within the period prescribed by law. Resolutions of the shareholders' meeting, if any, to amend the Articles of Association or re-election of directors and supervisors, shall be registered within the period of time as required by law.
In accordance with investor demand, we are invited to participate in corporate presentations from time to time, accept investor inquiries about the Company's operations by phone or in other forms at any time, and disclose the latest information about our finances, operations, and corporate governance in the investor section of the Company's website.
The Board of Directors shall conduct an annual evaluation of the performance of the Board of Directors at the end of each year, and shall collect the questionnaires from each Board member before the most recent Board meeting of the following year, and shall report the results of the evaluation to the Board of Directors at the first Board meeting of the following year.
The independent assessment of the certified public accountants is performed annually, and the independent assessment of the certified public accountants for the current year is conducted at the end of each year and completed prior to the most recent board of directors' meeting of the following year, and the results of the assessment are reported at the most recent board of directors' meeting of the following year.
To handle the insurance of directors and supervisors of directors and supervisors liability insurance, and will be insured amount, coverage and insurance premium rate and other information, submitted to the Board of Directors report.
To deal with matters relating to the furtherance of directorships.

Corporate governance operations

Question 4

Labor Relations

Accepted Answer

Employee Benefits

In accordance with the Company Law and the Company's Articles of Incorporation, 1% or more of the Company's annual earnings should be appropriated as compensation to employees.1 At the shareholders' meeting held on June 1, 2012, the Company's shareholders approved the appropriation of the Company's fiscal year 111 employees' cash compensation, and the employees' compensation (in cash) for fiscal year 111 accounted for 1.3% of the net income before income tax of the individual financial statements.

surname Nian degree (angles, temperature etc) 111surname Nian 110surname Nian 109surname Nian 108surname Nian 107surname Nian Amount disbursed $825,773 $1,127,236 $22,216,001 $7,557,647 $8,662,972

Performance bonuses are awarded based on operating conditions.Rewarding employees with business results] Employee pensions
Subsidies for weddings, funerals, public injuries, hospitalization, etc., gifts for the three holidays, and bonuses for Labor Day.
The company has a wide range of products and services to meet the needs of the market, including: labor insurance, health insurance, and related family insurance.
Staff meals, uniforms.
Group life and accident insurance.
The company's social assistance program.
Employee travel subsidy.
Payment of birthday gifts to employees.
Year-end dinner, departmental dinners, and color drawings.

Training & Training Measures .

We have a regular schedule of training courses and provide professional staff with specialized training and further education.

retirement system

In accordance with the Labor Standards Law, the Company has established an employee retirement plan and formed a Labor Pension Fund Supervisory Committee, which contributes a certain percentage of monthly salary to the Labor Pension Fund to be deposited in the Bank of Taiwan's pension fund account for the purpose of making future payments to the employees' pension fund. In accordance with the Labor Pension Act, starting from July 1, 2005, the Company contributes no less than 6% of salaries and wages to the employees' individual accounts at the Bureau of Labor Insurance each month. The payment of the employees' pension is based on the employees' individual pension accounts and the amount of the accumulated earnings in the form of a monthly pension or a lump-sum pension. All of the Company's labor relations regulations and measures are in compliance with relevant laws and regulations and have been implemented in good condition.

Labor and Employment Agreements

The Company belongs to the industry to which the Labor Standards Law applies, and all of its operations are conducted in accordance with the Labor Standards Law. As of the date of publication of the annual report, there have not been any labor disputes.

Communication Pipes

1.The company provides employees with specialized mailboxes, communication channels are smooth.

General Manager Mr. Wong Sai Chung Tel: (07)6116616 Ext. 211 .

Email: Johnhuang24@nanliugroup.com .

2. The Company Pinghu plant in accordance with « the People's Republic of China Labor Law», « the People's Republic of China Trade Union Law», « Zhejiang Province Collective Contract Regulations», the Ministry of Labor and Social Security « Wage Collective Negotiation Trial Measures» provisions, combined with the actual situation of the Company, on 2016/08/29 with the representatives of the staff consultation, signed « wage special collective contract ».

Question 5

Prevention of insider trading

Accepted Answer

At least once a year, the Company provides education and guidance to current directors, supervisors, and managers on the "Regulations Governing the Prevention of Insider Trading" and related laws and regulations, and arranges for education and guidance for new directors, supervisors, and managers within three months of their assumption of office, and for new employees during their pre-employment training. On November 12, 2008, the Company conducted a training program for current directors, supervisors, and managers on the confidentiality of material information, the causes of insider trading, the identification process, and examples of insider trading, and placed a summary of the program in the internal employee system for those who were not in attendance on that day and for the reference of the employees, as follows:

Prevention of Insider Trading Publicity Materials

Question 6

Prosecution of Illegal and Unethical or Dishonest Behavior Cases

Accepted Answer

In order to establish internal and external reporting channels and handling systems, implement the provisions of the Company's Code of Ethical Conduct and the Code of Business Integrity, and ensure the sustainable development of the Company's business, the Company encourages the reporting of any illegal and non-compliant behavior of the Code of Ethical Conduct and the Code of Business Integrity. The Office of the Chairman of the Board of Directors of the Company is the specialized unit and is supervised by the Audit Unit. The Company's Chairman's Office is responsible for the implementation of the Code of Ethics and the Code of Ethics.

A whistleblower may file a complaint with the following organizations

Spokesperson and Acting Spokesperson: Receive shareholders, investors and other interested parties of the report. Spokesperson and Spokesperson for the Company: The Company accepts reports from shareholders, investors and other interested parties.
Chairman's Office, President's Office, and Audit Unit: Receive reports from internal colleagues, customers, suppliers, and contractors. When the receiving unit receives a complaint, it shall be submitted to the president for approval and the responsible unit shall be in charge of investigating and verifying the complaint.

Detective Pipeline

Reporting Email: report@nanliugroup.com

Reporting hotline: 07-6116616 ext. 106, 211, 213, 223 .

Processing Procedures

The informant shall make a complaint through the receiving unit listed in Article 4 of these Regulations and provide sufficient information to facilitate the investigation, including the name of the informant, the unit, the title, the date of the incident, and the description of the content. The following is a summary of the information to be provided.
When the receiving unit receives an anonymous complaint, it should first confirm the truthfulness of the complainant, and then further clarify the purpose of the complaint and the specific evidence. The anonymous report will not be processed in principle, but the content of the complaint is recognized as necessary for the investigation can still be divided into cases, and as a reference for internal review. The following is a summary of the report of the investigation
The report of the incident has been verified, there is a violation of the law or unethical, dishonest behavior, should be based on the circumstances of the crime and the company's relevant provisions of the penalty, and attach evidence and disciplinary recommendations to the general manager for approval. The company's management team will be responsible for all the necessary procedures to ensure the safety of the employees.
In order to protect the rights of the person against whom the report is filed and to prevent him/her from being held hostage, the Company shall provide the person against whom the report is filed with an opportunity to present his/her opinion or to file a complaint, and, if necessary, shall convene a Personnel Review Committee to hear his/her case.

Question 7

Organization and Operation of Internal Audit

Accepted Answer

Audit Office Organization

The Company's Audit Office is under the Board of Directors, and is equipped with a full-time internal audit supervisor and an audit manager, whose terms and conditions of service are in accordance with the "Regulations Governing the Establishment of Internal Control Systems in Public Companies". The head of the internal audit office attends the Board of Directors' meetings to report on business, and his/her appointment and removal should be approved by the Audit Committee and submitted to the Board of Directors for resolution, while his/her remuneration should be discussed by the Remuneration Committee and submitted to the Board of Directors for approval. The name, age, education, experience, years of service, and training of the internal auditor shall be reported to the FSC through the Internet information system before the end of January of each year in accordance with the regulations. The appointment and dismissal of internal auditors is signed by the head of audit and approved by the chairman of the board of directors, and the assessment and remuneration are handled in accordance with the company's internal regulations. The internal auditor's appointment and remuneration are handled in accordance with the company's internal rules and regulations.

Audit Office Job Description

Risk assessment and planning of the internal control and internal audit system of the Company and its subsidiaries.
Supervise and assist the Company's units and subsidiaries in developing internal control systems.
Audit plans are prepared and executed.
Audit report writing and tracking of deficiencies.
Each unit of the Company and each subsidiary of the Company shall check and review the implementation of this policy on its own.
The project type of audit execution.
The Audit Supervisor attends the Board of Directors' meetings and presents the internal audit report, and delivers and notifies the independent directors of the audit report in accordance with regulations.
Other matters that need to be carried out in accordance with relevant laws and regulations.

Question 8

Information Security Policy

Accepted Answer

In order to ensure the confidentiality and integrity of the Company's data, information, equipment, personnel, network and other important information assets, and taking into account the Company's business needs, the Company has formulated the "Information Security Policy". All employees of the Company and all vendors and visitors who have business dealings with the Company should comply with this policy.

Information Security Risk Management Framework

Information Security Objectives

Ensure that the Company's information operations can be correct, complete and usable for continuous operation.
To ensure the confidentiality of the Company's important information and to implement data access control, information must be approved by authorized personnel before it can be accessed and must not be exceeded.

Information security controls

The Information Department confirms the effectiveness of our information security management operations.
Establish a list of information assets, manage them in accordance with information security, and implement various control measures.
New employees are required to participate in information security education and training to enhance their awareness of information security protection, and the company regularly conducts information security awareness programs.
All employees, outsourced vendors and their partners, and visitors who use the Company's information for the purpose of providing information services or performing related information operations have the responsibility and obligation to protect the Company's information assets acquired or used by them from unauthorized access, alteration, destruction, or improper disclosure. The Company's information assets are protected against unauthorized access, alteration, destruction or improper disclosure. The Company's information assets are protected against unauthorized access, unauthorized alteration, destruction or improper disclosure.
To establish a secure and reliable information system environment for the sustainable operation of the Company's business. Critical information systems or equipment should be equipped with appropriate backup or monitoring mechanisms and rehearsed regularly to maintain their availability. Anti-virus software should be installed on Tongren's personal computers and the update of virus codes should be confirmed regularly, and the use of unauthorized software should be prohibited.
Tongren individual holds the account number, password and authority should be good faith custody and use of responsibility and regular replacement.
Design appropriate information security incident response and notification procedures to enable immediate response to information security incidents to prevent further harm.
All employees of the Company shall comply with the requirements of laws and regulations and information security policies. Supervisors shall supervise the implementation of the information security compliance system and strengthen employees' awareness of information security and legal concepts.

Information Security Policy

Question 9

Succession planning for members of the Board of Directors and key management personnel.

Accepted Answer

The chairman of the board of directors invites professional talents and cultivated senior managers to attend the board meeting to understand and familiarize themselves with the operation of the board of directors and the various units within the Group. Currently, there are two senior executives serving as directors of the Company. The Company's senior executives can be planned as candidates for directorship, which is one of the talent options for the Company's directors. In addition to the consideration of diversity, no more than one-third of the directorships will be held by directors who are also managers of the Company and will emphasize gender equality and possess the knowledge, skills and qualities required for the position. Mr. Wong Ching Shan, the founder of the Company, has led the Company since its inception, and the Company's business performance has been evident to all.

The company has set forward-looking development goals for the next ten years, and under the personal guidance and training of the founder, the successors are allowed to take up different regional positions in the Pinghu plant in Zhejiang Province and the India plant respectively, to share their knowledge and experience with each other, and to train them in the ability to formulate strategies and operations. The training is divided into four modules: management ability, professional ability, personal development plan, and job rotation. The content also includes human resources, financial risk, overseas dispatch, and market changes, etc. In addition to the company itself, the company also participates in second-generation training classes held by external professional organizations, so as to come into contact with various types of succession management models, and to enable the trainees to learn the integration of the application of these models, in order to cultivate their future decision-making and judgmental abilities. In the company's succession planning, the successor must not only possess excellent working ability, but also have values that are consistent with the company's. Personality traits must include honesty, integrity, commitment, innovation, win the trust of customers, and hold an important position in the group.

Succession of the company's successor's family beliefs

Honesty, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love, Love

The good idea of the operation of more help honesty to treat people know a lot of people

The second-generation succession has already taken place. Huang Shizhong, who used to be the executive vice president of the parent company, has now taken over as the chairman and general manager of the company, and there is also Huang Renchong, who serves as the general manager of an overseas factory.

Succession planning for key management personnel is based on the Group's planned cultivation mechanism, whereby key management personnel are nurtured through years of leadership experience of internal senior executives, coupled with annual professional training in external courses and practical business experience, and has been carried out for many years within the Group.

Question 10

Important Corporate Stamps

Accepted Answer

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<ul>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/Articles_of_Incorporation_1120601.pdf" target="_blank" rel="noopener">Memorandum and Articles of Association</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/File17-Regulations_Governing_Procedure_for_Board_of_Directors_Meetings__1110531.pdf" target="_blank" rel="noopener">Rules of Procedure for Shareholders' Meetings</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/20_Rules_of_Procedure_for_board_of_directors1111108.pdf" target="_blank" rel="noopener">Rules of Procedure of the Board of Directors</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/File19-Procedures_for_Election_of_Directors_110_07_20.pdf" target="_blank" rel="noopener">Procedures for Election of Directors</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/16_Procedures_of_the_Acquisition_and_Disposal_of_Assets__1110531.pdf" target="_blank" rel="noopener" style="background-color: #ffffff; color: #000000;">Procedures for Acquisition or Disposal of Assets</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/08_Procedures_for_Loaning_of_Funds_108_05_29.pdf" target="_blank" rel="noopener">Procedures for Lending Funds to Others</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/05_Making_of_EndorsementsGuarantees_108_05_29.pdf" target="_blank" rel="noopener" style="background-color: #000000; color: #000000;">Endorsement Guarantee Procedures</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/File10-Rules_Governing_Financial_and_Business_Matters_Between_this_Corporation_and_its_Affiliated_Enterprises-110_3_10.pdf" target="_blank" rel="noopener" style="color: #000000;">Code of Conduct for Financial Operations among Affiliated Enterprises.</a><br /></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/File13_Rules_of__Corporate_Governance_Practice-1080416.pdf" target="_blank" rel="noopener">Code of Practice on Corporate Governance</a></li>
<li><a href="https://www.nanliugroup.com/upload-files/finance/Corporate_governance/rules/File32_Rules_for_Performance_Evaluation_of_Board_of_Directors-110_03_10.pdf" target="_blank" rel="noopener">Board Performance Evaluation Method</a></li>
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Corporate governance information