Corporate Governance

AEMC has explicitly stipulated in the "Principles of Corporate Governance" that the composition of the Board of Directors should take diversity into consideration. Apart from limiting the number of directors concurrently serving as the company’s managerial personnel to no more than one-third of the total board seats, the company should also establish appropriate diversity policies based on its operations, business model, and developmental needs. These policies should include, but are not limited to, the following two major dimensions:

1. Basic Qualifications and Values: Factors such as gender, age, nationality, and culture. The proportion of female directors should ideally account for one-third of the total board seats.
2. Professional Knowledge and Skills: Professional backgrounds (e.g., law, accounting, industry, finance, marketing, or technology), professional skills, and industry experience.

Board members should generally possess the knowledge, skills, and qualities required to perform their duties. To achieve the ideal objectives of corporate governance, the Board as a whole should demonstrate the following competencies:

1. Operational judgment.
2. Accounting and financial analysis.
3. Business management capabilities.
4. Crisis management skills.
5. Industry knowledge.
6. International market perspective.
7. Leadership ability.
8. Decision-making skills.

For more information on the diversity of the Company’s directors, please refer to the "Implementation of Board Member Diversity."

• To enhance its industry-leading position and protect its hard-won technological achievements, AEMC has devised an intellectual property strategy that aligns with its business goals and R&D efforts. In accordance with the Taiwan Intellectual Property Management Standards (TIPS), this strategy is planned and implemented to establish a business model that leverages intellectual property to create corporate value. It safeguards AEMC’s operational freedom, strengthens its competitive position, and can be utilized to help the company generate profit. This includes, but is not limited to, patents, trade secrets, trademarks, copyrights, and other intangible assets.

Patent Management

• The company’s patent management strategy primarily focuses on maintaining operational freedom, patent productization, and product patenting. Through mechanisms such as review processes, reward systems, awareness campaigns, and talent development, the strategy ensures the protection of the company’s R&D achievements and technological leadership. 
• Internally, the company has established a diverse set of innovation encouragement mechanisms to motivate employees to file invention applications. Additionally, a systematic intellectual property management system is in place, supported by a graded review process to ensure both the volume and quality of patent applications are adequately managed.  
• Externally, the company maintains close contact and technical exchanges with patent authorities in key domestic and international markets, assisting patent examiners in gaining a better understanding of the company’s technological content. This collaboration helps improve examination efficiency and secure high-quality patent protection.

Trade Secret Protection

• Trade secrets are critical to maintaining AEMC’s competitive advantage in technological leadership, manufacturing excellence, and customer trust. Beyond safeguarding specific intellectual assets, AEMC has implemented a “Trade Secret Innovation Registration System” to systematically document and integrate the use of trade secrets that enhance its competitive advantages.

Intellectual Property Dispute Management

• In exceptional circumstances, if AEMC cannot secure or retain licensing for essential technologies or IP or fails to safeguard its proprietary rights, resulting infringement litigation may :
• Restrict AEMC’s ability to produce certain products, deliver specific services, or employ necessary technologies.
• Weaken AEMC’s competitive advantage against infringers, thereby limiting opportunities for revenue generation.
  AEMC has taken proactive steps to mitigate the potential impact of IP disputes on shareholder value. These actions include obtaining critical licenses strategically, securing defensive and offensive IP protections for core technologies, and robustly contesting unwarranted patent claims.

Implementation Overview

• AEMC shared its 2025 intellectual property (IP) management progress during the 8th Board of Directors' 21th meeting on November 12, 2025, implementing improvements based on directors' feedback.
  
  Since its establishment, AEMC has been actively promoting intellectual property management. The key initiatives over recent years include:
• Launching the "Trade Secret Innovation Registration System" in 2022.
• Winning the "National Industrial Innovation Award – Outstanding Innovative Enterprise" in 2023.
• Securing the "Silver Award with Advanced Semiconductor Photoresist" at the 2023 Industrial Patent Analysis & Deployment Competition.
• Joining the "Intellectual Property Committee of CNFI" in 2024.
• Integrating "Gen AI" for knowledge management in 2024.
• Participating in the "Trade Secret Sustainable Intelligent Management Alumni Program" in 2024.
• Joining the LOT Industry Alliance in 2025.
• Participating as an exhibitor in the 2025 Trade Secret Intelligence Management Expo.
• Achieving TIPS A-Level Certification in 2025.

IP Achievements

1. Patents : Over 200 patent applications worldwide and close to 150 granted patents by 2025, with an approval rate of 90%.

2. Trade Secrets : More than 700 registered trade secrets in the Trade Secret Innovation Registration System by 2025, underscoring a robust IP portfolio.

     Policy and Commitment

• "Sincerity, Trust, Service, and Innovation" represent AEMC's core values and corporate culture. These values are a direct reflection of AEMC’s commitment to the Policy on Ethical Business Practices. Integrity is the foundation of our business philosophy, and we are committed to promoting these values throughout all levels of our organization.
  
  
• To cultivate a culture of integrity and ensure sustainable growth, AEMC has established key policies approved by the Board of Directors, including the "Corporate Governance Best Practice Principles", "Ethical Corporate Management Principles", "Code of Ethical Conduct", and "Procedures for Ethical Management and Guidelines for Conduct". These policies are publicly disclosed in AEMC’s annual reports. The Board of Directors and management are actively dedicated to upholding these principles and require full compliance from all employees across the group.
  
  
• AEMC’s Policy on Ethical Business Practices set clear standards for stakeholders to ensure integrity in all interactions. It strictly prohibits
  bribery, illegal political contributions, conflicts of interest, and improper relationships with third parties, particularly in high-risk business activities. To address violations, AEMC has implemented the "Whistleblowing Procedure for Violations of Ethical Conduct and Integrity" and "Employee Grievance Handling Procedures". If a violation is confirmed upon investigation, disciplinary actions will be taken in accordance with AEMC’s policies.

      Upholding Ethical Management

• AEMC evaluates the integrity history of its partners and ensures all contracts contain clearly defined provisions on integrity. In cases of dishonest behavior, AEMC reserves the right to terminate or rescind the contract at any time.
  
  
• Ethical Management is coordinated by the Administration Division and the Legal and Intellectual Property Office, with regular reports submitted to the Board of Directors. On March 27, 2024, the Board approved the " Revised Ethical Corporate Management Principles " and established the Ethical Management Office.The office is led by the Chief Governance Officer as the convener, with the head of the Legal and Intellectual Property Office serving as the deputy convener and supported by a team composed of Investor Relations and Public Relations professionals, together with Legal professionals. This office is responsible for the promotion of the Policy on Ethical Business Practices, conducting relevant educational programs, and investigating reports of ethical or legal violations in accordance with the “Whistleblowing Procedure for Violations of Ethical Conduct and Integrity”. It must submit at least an annual update to the Board, detailing the implementation of the policy and the measures in place to prevent dishonest behavior.
  
  
• AEMC has established a policy to prevent conflicts of interest, aimed at identifying, monitoring, and managing risks related to dishonest behavior arising from such conflicts. Additionally, AEMC provides appropriate channels for directors, managers, and other stakeholders involved in Board meetings to proactively disclose any potential conflicts of interest with AEMC.
  
  
• All AEMC employees have signed the Statement of Ethical Business Practices, reinforcing our culture of integrity and a strong sense of self-discipline. In addition, AEMC has implemented the Conflict-of-Interest Self-Declaration Form and the Ethical Business Conduct Declaration Form on our intranet, providing reporting and communication channels for Upholding Ethical Management, including conflicts of interest.
  
  Preventing Conflicts of Interest
• AEMC has established clear guidelines to ensure that its directors and managerial personnel (including president and equivalent positions, vice president and equivalent positions, heads of finance departments, heads of accounting departments, and other individuals authorized to manage company affairs and sign on behalf of the company.) act in alignment with ethical standards. These measures aim to enhance stakeholders’ understanding of AEMC’s commitment to ethical practices.
• To ensure transparency, AEMC discloses these guidelines on its corporate website, annual reports, prospectuses, and the Market Observation Post System (MOPS). Any amendments are disclosed in the same manner. 
  
  Preventing Insider Trading and Conflicts of Interest
• AEMC has implemented the "Procedures for the Prevention of Insider Trading" to safeguard both investors' and AEMC's interests. Monthly alerts are sent to remind employees about insider trading prevention. Since 2023, Ethical Management training, which includes insider trading prevention, anti-bullying, prevention of unlawful infringement, and sexual harassment awareness, has been incorporated into compulsory courses for new employees and those in specific roles. A total of 2417 participants have attended the training, accumulating 958.4 hours of training time.

     Whistleblower System/Complaint Mechanism

• AEMC has implemented the “Whistleblowing Procedure for Violations of Ethical Conduct and Integrity,” and provides a designated whistleblowing mailbox to encourage internal employees, as well as external clients and suppliers, to report feedback and dishonest behavior. Upon receiving a report, the Ethical Management Office will clarify the intent and specific evidence of the complaint. If there is clear evidence of a legal or unethical violation, or dishonest behavior, the case will be forwarded to management for further action.
  
  
• AEMC strictly upholds the confidentiality of the whistleblower’s identity and the contents of the report and has established the “Whistleblower Protection and Anti-Retaliation Management Procedures,” guaranteeing that whistleblowers will not face retaliation or improper treatment. Personnel responsible for handling whistleblower cases must ensure strict confidentiality of both the whistleblower’s identity and the reported matter. Additionally, AEMC has established "Employee Grievance Handling Procedures" to manage confirmed violations, with the results submitted to the Disciplinary Committee for appropriate disciplinary actions based on AEMC’s regulations. In addition to the Ethical Management Office, a Sexual Harassment Complaints Committee has been established to enhance internal investigation and reporting mechanisms.

Whistleblowing Channels
Email: whistle@aemc.com.tw

(I)    The Company has established the "Sustainable Development Best Practice Principles" and the "Sustainability Information Management Guidelines" to establish a management mechanism for sustainable development and to ensure the effective implementation of various measures.

(II)   In 2024, the Company established a Sustainable Development Task Force to execute matters related to sustainable development. The President serves as the convener, and a designated supervisor from the task force acts as the management representative to hold regular meetings. Furthermore, on March 1, 2025, the Corporate Sustainability Division was established as a dedicated unit to promote sustainable development, coordinating planning and execution of related tasks.

　📍　It is anticipated that a Sustainable Development and Risk Management Committee will be established in the second half of the year. This committee will be authorized by the Board of Directors to formulate and oversee the Company's sustainable development policies, ensuring that the sustainable development strategies align with the Company's long-term objectives.

　📍　The Corporate Sustainability Division is responsible for formulating the Company's sustainable development policies, management systems, and specific implementation plans to ensure that the Company's operations align with international sustainability trends.

　📍　The current operations include the formulation and execution of the annual work plan, such as the preparation of the sustainability report, greenhouse gas inventory, energy conservation and carbon reduction initiatives, and participation in ESG (Environmental, Social, and Governance) initiatives.

　📍　After the establishment of the Sustainable Development and Risk Management Committee, the Company will further integrate risk management with sustainability development to enhance governance effectiveness.

　📍　The Corporate Sustainability Division shall report to the Board of Directors at least once a year, covering the progress of annual sustainability development and future plans.

　📍　In 2025, the Company plans to report to the Board of Directors in the third quarter and provide updates on the sustainability report, sustainability performance, and future improvement measures.

(III)  The Board of Directors is responsible for reviewing the Company's sustainable development strategies, management policies, and objectives, ensuring the Company's continuous improvement in the ESG domain. The Board will regularly review the execution of sustainability plans and adjust policies accordingly to respond to domestic and international regulatory changes and industry trends.

If a shareholder proposal involves issues of sustainable development, the Board of Directors will conduct a careful assessment and, when appropriate, incorporate it into the agenda of the shareholders' meeting to ensure a balance between shareholder interests and the Company's long-term development.

(IV)  In response to the revisions of the "Action Plan for Sustainable Development of TWSE/TPEx- Listed Companies" and the "Regulations for the Preparation and Submission of Sustainability Reports by TWSE/TPEx-Listed Companies," the Company has initiated its sustainable development plan and the preparation of its sustainability report. The first sustainability report will be completed by the end of August 2025, and the English version will be published by the end of the year to enhance international transparency and the effectiveness of stakeholder communication.

Based on the materiality principle, the Company has identified the threats and opportunities related to ESG issues during its production and operations. Using risk analysis methods, the Company formulates risk management strategies, allocates resources, strengthens its strengths, and continuously improves weaknesses, aiming to reduce threats and seize external opportunities. The following related issues are subjected to risk assessments :

　📍　Environment :

(I)    ISO 14001 serves as the management framework, and based on the "Environmental, Health, and Safety Consideration Management Procedures," management plans and objectives are established. Regular tracking is conducted to maintain the operation of the management system.

(II)   ISO 14064 serves as a verification system and is based on the "Greenhouse Gas Verification Control Procedures" to conduct greenhouse gas inventories and obtain verification certificates. Through greenhouse gas inventories, it is possible to understand the sources of greenhouse gas emissions within the facility. Subsequently, through improvement measures, energy conservation and carbon reduction can be achieved, leading to a decrease in greenhouse gas emissions. This not only reduces operational costs but also aids in fulfilling corporate social responsibility, enhances the Company's image, and earns the trust of customers and investors.

　📍　Society :

Through certification of the ISO 45001 Occupational Health and Safety Management System, the Company is committed to reducing process hazards and providing a safe and friendly working environment.

　📍　Corporate Governance :

The Company has established the Corporate Governance Best Practice Principles and has designated a dedicated audit unit and a corporate governance officer. In addition to complying with laws and regulations as well as the Articles of Incorporation, the Company implements internal control systems, conducts thorough execution and reviews to ensure the effectiveness of these systems, and continuously monitors various risks, taking timely and effective measures in response.

• In accordance with the Personal Data Protection Act of Taiwan and relevant regulatory guidance, and in alignment with the spirit of the EU General Data Protection Regulation (GDPR), AEMC has established the Personal Data Protection Management Regulations and the Personal Data Protection Policy. Both are approved by senior management and reviewed regularly to help ensure compliance across the full lifecycle of personal data, including collection, processing, use, and cross-border transferring. The scope covers our branches, operating sites, subsidiaries, and relevant stakeholders, including customers, suppliers, website visitors, product or service users, contractors’ employees, job applicants, and visitors.
  
  
• With reference to the NIST Cybersecurity Framework (NIST CSF), AEMC conducts risk assessments of confidential information. The Information Security Committee develops risk management strategies based on the results and holds regular meetings to review internal compliance with personal data protection and information security standards, procedures, and regulations.
• In daily operations, AEMC continuously updates hardware, software, and operational procedures, and implements information security measures, including encryption, enhanced phishing detection and employee awareness testing, ransomware drills, and ongoing privacy and personal data protection awareness programs, to reduce the risk of personal data leakage and safeguard the confidentiality of critical assets.
• To strengthen oversight, AEMC has established a Personal Data Protection Committee to oversee compliance with the Personal Data Protection Policy. We have also implemented a real-time incident reporting and response mechanism, under which both employees and contracted partners are required to report incidents promptly. Upon receiving a report, the Ethical Management Office will notify relevant departments and affected individuals and coordinate investigation and handling.
  
  【Implementation Overview】
• Since 2025, personal data protection training has been incorporated into compulsory courses for all employees. A total of 398 attendances have been recorded, accumulating 420 hours of training time. Going forward, we will continue to conduct incident reporting drills and system security audits to reduce potential risks and ensure information security.

　【Personal Data Protection Policy of Advanced Echem Materials Company Ltd.】

• This Personal Data Protection Policy (this “Policy”) is issued by Advanced Echem Materials Company Ltd. (hereinafter “the Company”, “we”, “us”, or “our”). This Policy is addressed to individuals outside our organization with whom we interact, including all branches, operating sites, subsidiaries, customers, suppliers, visitors to our sites, users of our products or services, personnel of corporate customers and contractors, applicants for employment, and visitors to our premises (together, “you”).
  
  
• The Company is committed to protecting your Personal Data in the course of our operations. We follow the spirit of the EU General Data Protection Regulation (GDPR) and relevant laws and regulations. We do not provide or rent your Personal Data to third parties. To effectively manage personal data risks, the Company has established a Personal Data Protection Committee to execute and oversee policy compliance, with the head of the Ethical Management Office serving as the executive secretary.
  
  “Personal Data” under this Policy includes your Personal Data and any third party’s Personal Data that you provide; you must ensure that such third party has consented to their data being provided to us and is subject to this Policy.
  
  Article 1　: Scope of the Policy
  This Policy explains how we Process your Personal Data. It applies not only to customers but also to suppliers. Any employee who violates this Policy will be subject to disciplinary action according to internal regulations.
  
  Article 2　: Collection of Personal Data
  We may collect or obtain Personal Data about you from the following sources:
  • 　Website Usage: When you visit our website, use features, or register for accounts/services, systems may automatically record information (e.g., IP address, browser info, usage time) and use third-party tools for analysis.
  • 　Contact and Cooperation: When you provide data via email, telephone, business card exchange, job application, participation in meetings/exhibitions, or establishing a business relationship.
  • 　Public Sources: Data you choose to make public on social media or other public platforms.
  • 　Third-Party Interaction: Information received from third-party providers when you interact with their content, advertising, or plugins on our website.
  • 　Third-Party Provision: Data provided by credit reference agencies, law enforcement authorities, or other legal sources.
  
  Article 3　: Categories of Personal Data We Process
  We may Process the following categories of Personal Data:
  • 　Basic Identification: Name, gender, date of birth/age, nationality, salutation, title, photograph, ID number, correspondence address, telephone number, email, instant messaging accounts, and social media profiles.
  • 　Employment and Professional Information: Employer, job title, occupation, work experience, employment records, education, qualifications and certifications, professional skills, language abilities, and information regarding participation in seminars/exhibitions or business relationships.
  • 　Contact and Interaction Records: Records of correspondence, order details, payment records, feedback you provide, or comments made public via social media, and records of your interactions with our website or advertising.
  • 　Website and System Usage Information: Device type, operating system, browser information/settings, IP address, language settings, login details (e.g., username, password, encrypted credentials), usage time, operation records, and statistical or anonymized data.
  • 　Consent and Personal Data Records: Records of the method, time, date, and subject matter of any consent you have provided.
  • 　Security and Visitor Information: Visitor logs, security audit records, and other information security-related data.
  
  Article 4　: Purposes of Processing Personal Data
  Under specific circumstances, we may create and integrate Personal Data generated from your interactions with us for the following purposes:
  • 　Business Operations and Service Provision: Operating and managing websites, products, and services; providing content, interactive features, and updates.
  • 　Communication and Marketing: Contacting you via email, telephone, or social media to provide information of interest and maintain contact details (seeking consent where legally required).
  • 　IT and Security Management: Managing internal communications, information, and security systems, including login records and security checks.
  • 　Surveys and Feedback: Collecting views on our website or services to improve quality and experience.
  • 　Vendor Management: Establishing and maintaining relationships with suppliers.
  • 　Investigation and Risk Prevention: Conducting internal investigations or cooperating with authorities to prevent violations or crimes.
  • 　Legal Compliance: Fulfilling obligations under applicable laws (e.g., data protection, labor, tax, import/export).
  • 　Legal Rights Maintenance: Managing, asserting, or defending legal rights and obligations, including litigation and dispute resolution.
  • 　Recruitment and HR Management: Job recruitment, interviews, position assessment, and hiring decisions.
  
  Article 5　: Sensitive Personal Data
  We do not actively collect or Process Sensitive Personal Data in the ordinary course of business. If Processing becomes necessary for legitimate reasons, it will be done in accordance with the law for:
  • 　Compliance with legal obligations.
  • 　Detection and prevention of crime.
  • 　Establishment, exercise, or defense of legal rights.
  • 　Where we have obtained your prior express and legal consent.
  
  Article 6　: Disclosure of Personal Data to Third Parties
  To achieve the purposes set out in this Policy, we may share your Personal Data with:
  • 　Internal Personnel and Authorized Third Parties: Other members of the Company’s group or third parties you have consented to.
  • 　Authorities: Government agencies, courts, or law enforcement were required by law or necessary for investigation/prosecution.
  • 　Professional Advisors: Accountants, auditors, lawyers, and consultants subject to binding confidentiality agreements.
  • 　Service Providers: Third-party Processors who assist our operations (e.g., payment, logistics, hosting, and IT service providers).
  • 　Advertising and Transactional Third Parties: Providers of advertising/plugins on our site, or parties involved in mergers, acquisitions, or asset transfers.
  When engaging third-party Processors, we sign contracts requiring them to: (1) only Process data according to our written instructions; and (2) implement security mechanisms to ensure data confidentiality.
  
  Article 7　: Profiling
  For information security purposes, we may analyze the content of communications between you and Company personnel to identify potential risks or security breaches. We encourage you not to disclose Sensitive Personal Data or highly confidential information in such communications.
  
  Article 8　: Data Security
  We have implemented appropriate technical and organizational security measures in accordance with applicable laws and regulations to protect your Personal Data against accidental or intentional unlawful destruction, loss, alteration, unauthorized disclosure, or unauthorized access, as well as other unlawful or unauthorized processing. Due to the open nature of the internet, transmission is not completely secure. Although we take all reasonable measures to protect your Personal Data, we cannot guarantee that transmission over the internet will be completely secure. You assume any risks associated with such transmission. Please ensure that any information you send to us is transmitted through a secure method.
  
  Article 9　: Data Accuracy
  We take every reasonable step to ensure that:
  •　 Your Personal Data that we Process is accurate and, where necessary, kept up to date; and
  • 　any of your Personal Data that we Process that are inaccurate (having regard to the purposes for which they are Processed) are erased or rectified without delay.
  
  Article 10　: Data Minimization
  We take every reasonable step to ensure that the Personal Data we Process is limited to what is reasonably necessary in connection with the purposes set out in this Policy.
  
  Article 11　: Data Subject Rights
  Under applicable laws, you may exercise the following rights regarding your Personal Data:
  • 　Access and Rectification: The right to access or request copies of your data and request correction of inaccurate or incomplete information.
  • 　Erasure, Restriction, and Withdrawal: The right to request deletion, restriction of Processing, or to withdraw consent (without affecting the lawfulness of Processing prior to withdrawal).
  • 　Portability and Objection: The right to have data transferred to another controller or to object to Processing based on your particular situation or for direct marketing.
  • 　Refusal and Complaint: The right to refuse to provide data (which may affect service completeness) or to lodge a complaint with a data protection authority.
  We may require proof of your identity before giving effect to these rights.
  
  Article 12　: Restrictions on Use of Customer Data
  We are committed to protecting customers’ Personal Data and will not use customer Personal Data for any secondary purpose other than those defined in this Policy.
  
  Article 13　: Contact Information
  If you have any questions regarding this Policy, please contact us at:
  Advanced Echem Materials Company Ltd.
  Address: No. 455, Xinhe Rd., Longtan Dist., Taoyuan City 325003, Taiwan (R.O.C.)
  Telephone: +886-3-4072100
  You may also use the “Contact Us” feature on our website.

    【Implementation Overview】

•  AEMC has established a comprehensive risk governance framework that integrates risk management with corporate strategies and objectives through the involvement of the Board of Directors and senior management. A top-down risk culture is promoted through clear commitments, dedicated functions, and employee training, enabling risk awareness to be embedded into daily decision-making and operations. All departments collaborate with appropriate resource support to implement enterprise-wide risk management and reasonably ensure the achievement of the Company’s strategic goals.
  
  
• On August 13, 2025, AEMC established the Sustainability and Risk Management Committee, which regularly reviews the appropriateness of the risk management framework and risk appetite, and approves both qualitative and quantitative risk tolerance levels. The Committee oversees the effectiveness of the risk management mechanisms, reviews implementation progress, and provides recommendations for improvement. It also reports to the Board of Directors at least once a year on overall risk management performance to ensure that risk controls are properly implemented and continuously enhanced.
  
  
• To further strengthen risk control, AEMC will organize risk management training programs to enhance employees’ risk awareness, embed risk-management principles in daily operations and managerial activities, and support AEMC’s sustainable development and achievement of strategic objectives.