Implementation Status of Ethical Corporate Management
The Company has established the “Code of Ethical Conduct”, “ Ethical Corporate Management Best Practice Principles” and “Operating Procedures for Ethical Management and Guidelines for Conduct”, which expressly prohibit bribery, accepting bribes, providing unlawful political contributions, improper charitable donations or sponsorships, and improper exchanges of benefits, and at the same time, safeguard intellectual property rights and prevent unfair competition, and require that all of the Company’s employees comply with the relevant ethical standards and codes of conduct to promote the sound development of the Company.
The Company attaches importance to the principles of fairness, honesty, trustworthiness, and transparency to guide its business activities, takes “integrity and cleanliness” as its core business value, and establishes good corporate governance policies and risk management mechanisms to achieve its long-term development goals. For the purpose, we regularly review the possible risks of unethical conducts and perform annual audits through internal audit unit, which includes two operating sites Xinpu Plant and Tongluo Plant), and 100% of the operating sites of TAIMIDE have completed the corruption risk assessment. The Company organizes training and promotional education regularly and the Human Resources Division is responsible for the formulation of ethical corporate management policies and preventive programs and for overseeing the implementation of ethical corporate management in order to carry through the operations of ethical corporate management and reported its implementation status to the Company’s Board of Directors on November 7, 2025.
Ethical Management Approach
Ethical Corporate Management Training
The Company strictly requires employees to exercise self-discipline and comply with the Code of Ethical Conduct. Relevant provisions of the employee work rules are regularly communicated during monthly staff meetings, and educational programs are strengthened for both internal and external personnel. New employees are required to participate in training, while all employees and senior management are invited to voluntarily attend the training courses. In 2025, a total of 208 participants attended, totaling 104 hours of training. (Training details are provided in the table below)
Implementation and Training on Insider Trading Prevention
1.The Company has established the“Corporate Governance Best Practice Principles”and the“Procedures for Handling Material Inside Information”to regulate stock trading control measures for insiders from the date they become aware of the Company’s financial reports or related operating performance information. These measures include, but are not limited to, prohibiting directors from trading the Company’s shares during the closed periods, namely within thirty days prior to the announcement of the annual financial report and within fifteen days prior to the announcement of each quarterly financial report. Directors, managers, and employees are prohibited from disclosing any material inside information they have become aware of to others, from inquiring of or collecting unpublished material inside information of the Company that is unrelated to their duties from any person who possesses such information, and from disclosing to others any unpublished material inside information of the Company that they have obtained other than in the course of performing their duties.
2.The Company arranges and conducts educational courses and awareness programs on the“Insider Trading Prevention Measures”and related regulations for current directors, managers, and employees at least once a year. For newly appointed directors or managers, the Company provides, upon assuming office, the“Regulatory Guidance Manual for Directors and Supervisors,”“Regulations and Compliance Guidelines on Shareholding Changes,” and other regulatory materials, and arranges corresponding educational sessions.
3.On November 7, 2024, the Company notified directors of the planned meeting dates for all Board meetings in 2025 and simultaneously reminded them of the trading blackout periods prior to financial report announcements. Additionally, during the annual insider trading prevention training, directors are reminded not to trade the Company’s shares during the 30 days prior to the annual financial report announcement and the 15 days prior to each quarterly financial report announcement. Before each 2025 Board meeting, the Company also notifies directors via email of the meeting dates and the relevant blackout periods before each quarterly financial report, in order to prevent any inadvertent violations.
(Implementation status from 2025 to date is as follows)
4.The Company also conducts periodic educational sessions on the internal training platform (TMS), requiring participation from all employees. The courses cover topics such as an introduction to insider trading regulations, the scope of insider information, its causes, and the associated risks to the Company. New employees receive an“Introduction to Insider Trading, Integrity Practices, and the Code of Ethical Conduct”upon joining. Relevant presentation materials and video files are stored on the Company’s internal system for employees’ reference at any time.
5.In 2025, the Company’s educational and awareness programs for directors, insiders, and employees totaled 211 participants, with a total of 113 training hours. (Training details are provided in the table below)
Whistleblowing Channels
The Company has established whistleblowing-related provisions under Article 21 of the “Procedures for Ethical Management and Guidelines for Conduct.” For detailed information, please refer to the “Procedures for Ethical Management and Guidelines for Conduct” under “Key Company Regulations” on the Company’s official website.TAIMIDE's whistleblowing system and related procedures operate in parallel with audit operations, accepting anonymous complaints while ensuring confidentiality and protection for whistleblowers throughout the process, with no retaliation permitted. Independent reporting mechanisms and dedicated hotlines are established on both the company website and intranet, providing stakeholders with multiple channels for complaints and reports. The legal unit handles compliance-related issues raised through these channels, forming project teams when necessary to coordinate cross-departmental support.
Relevant departments report aggregated investigation results to the Board at least once annually, 1 times in 2025. In 2025, the Company recorded zero incidents of corruption, bribery, or violations of ethical management regulations, with no reported cases requiring investigation.
Number of Complaints/Reports in the Past Three Years
Multiple Complaint Channels
