Spokesperson Name: Wengui Hsiang Title: Vice President Tel: 886-6-578-2561 E-mail: winston.hsiang@everest.com.tw

Stock Transfer Agent Oriental Securities Co., Ltd. Address: 13 14F, NO 16, Xinzhan Rd., Banqiao Dist., New Taipei City Taiwan Tel: 886-02-7753-1699 Website: http://www.osc.com.tw

Auditors Deloitte & Touche Auditors: Jiz-hen Li & Li-yuan Guo. Address: 13F, 189 Yongfu Road, Sec. 1, Tainan, 70051, Taiwan Tel.: 886-6-213-9988 Website: www.deloitte.com.tw

Corporate Website http://www.everest.com.tw

Headquarters Everest Textile Co., Ltd Address: No.256 Minghe Vil., Shanshang Dist., Tainan City 74342, Taiwan (R.O.C.) Tel: 886-6-5782561

Contents

I. Letter to Shareholders............................................................................................ 1

II. Company Profile

2.1 Date of Incorporation.............................................................................................. 6

2.2 Company History ………....................................................................................... 6

III. Corporate Governance Report

3.1 Organization..........................................................................................................10

3.2 Directors, Supervisors and Management Team…………………………………12

3.3 Implementation of Corporate Governance ........................................................... 29

3.4 Information Regarding the Company’s Audit Fee and Independence.................. 75

3.5 Changes in Shareholding of Directors, Supervisors, Managers and Major

Shareholders……………………………………………………………………..76

3.6 Relationship among the Top Ten Shareholders………..……....………...………77

3.7 Ownership of Shares in Affiliated Enterprises…………………………………77

IV. Capital Overview

4.1 Capital and Shares………………………………………………………….……78

4.2 Bonds…………….………………………………………………………….……81

4.3 Global Depository Receipts ….…………………………………………….……81

4.4 Employee Stock Options…………………………………………………………81

4.5 Status of New Shares Issuance in Connection with Mergers and Acquisitions….81

4.6 Financing Plans and Implementation……………………………………...……..81

V. Operational Highlights

5.1 Business Activities……………………………………………………………….82

5.2 Market and Sales Overview…………………………………….………..………83

5.3 Human Resources……….………………………………………………………92

5.4 Environmental Protection Expenditure………….…………………………….92

5.5 Labor Relations………………………………………………………………93

5.6 Important Contracts……………………………………………………………96

VI. Financial Information

6.1 Five-Year Financial Summary………………………………………….……….97

6.2 Five-Year Financial Analysis…………………………………………….……101

6.3 Supervisors’ or Audit Committee’s Report in the Most Recent Year…………102

6.4 Financial Statements for the Years Ended December 31, 2019 and 2018, and

Independent Auditors’ Report………………………………..…………………102

6.5 Consolidated Financial Statements for the Years Ended December 31, 2019 and

2018, and Independent Auditors’ Report………………………………….…….102

VII. Review of Financial Conditions, Operating Results, and Risk Management

7.1 Analysis of Financial Status…………………………………………………….103

7.2 Analysis of Operation Results……………………………………………..……104

7.3 Analysis of Cash Flow………………………………………..………………105

7.4 Major Capital Expenditure Items……………………………………………106

7.5 Investment Policy in Last Year, Main Causes for Profits or Losses,

Improvement Plans and the Investment Plans for the Coming Year……….…106

7.6 Analysis of Risk Management…………………………………………….…….107

VIII. Special Disclosure

8.1 Summary of Affiliated Companies……………………………………..….…110

8.2 Private Placement Securities in the Most Recent Years………………………113

8.3 The Shares in the Company Held or Disposed of by Subsidiaries in the Most Recent

Years....................................................................................... ........113

I. Letter to Shareholders

Dear Shareholders,

A Foreword

Global economic growth in 2019 stayed in a low situation, mainly due to the slowdown in economic growth in the United States and China, weak economic performance in emerging markets, the continued continuation of the US-China trade war; But the Fed in response to the global economic slowdown, not only to stop the original start of the interest rate hike cycle, in early March 2020 in response to the global spread of the new coronavirus pneumonia epidemic(COVID-19), the financial markets of various countries experienced intense shocks, prompting the Federal Reserve on March 16 to cut interest rates by another 4 yards to 0% to 0.25%, the market forecast of zero interest rates in the United States, which is showing the Fed's economic prospects deepening doubts. In the domestic boom part, although benefiting from the US-China trade turnover effect, Taiwan has so far been barred from entering two neighboring regional trade agreements: CPTPP and RCEP. Taiwan enterprises are highly dependent on the U.S. and European markets, will be highly challenged by china, Japan and South Korea and other rivals. Everest Textile looks into the future will strengthen vertical integration of upstream and downstream supply chain. In the face of the COVID-19 outbreak, it has a major impact on the world's major industrial supply chains. It affects February start rate of Everest Textile Shanghai plant due to work start date deferred and personnel self-isolation and other policies. Since the whole plant appropriate plan on resuming work, in March Shanghai plant was back in fully normalized production. However, due to the rapid spread of COVID-19 from China to Italy, Iran, and even Europe, Americas etc., the main brand customer markets have been affected, resulting in the stagnation of the consumer market, the global economy has a huge impact. Everest Textile in Asia, the Americas, Africa, respectively set up fabric factory and garment factory, has been through the brand customer inspection plant, with a large number of orders. Ethiopia and Haiti have zero tariff advantages, can quickly elastic in response to the scheduling of production areas and production capacity supply, short-chain decentralized production, will be the best partner of global brand customers. In response to major changes in the global economy, Everest Textile will invest prudently and conservatively, expand refined production and increase productivity to reduce operating costs and focus on cash flow in response to the challenges of global deflation;

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B Operating Results Everest Textile consolidated revenue in 2019 was TWD 8.86 billion, down 5.76% from 2018. Net loss was TWD272 million, and EPS was -0.56, mainly from profit to loss Department in the face of low-cost competition in Southeast Asia, the decline in revenue led to a decrease in gross margin, operating expenses rate also due to support the expansion of overseas three factories increased operations, and overseas three new plants in the initial stage of operation, the marketing system is still weak, orders are insufficient, capacity efficiency has yet to be improved, so the overall operating performance did not meet the target. However, with the overseas new three factories have entered the production operation stage, the company to develop a human development strategy, the use of multi-leap ingress, expand sales and research and development related personnel, actively develop and receive orders, expand new market development, and establish a new operating model of e-commerce platform, in response to this wave of global economic crisis.

C 2019 Goals and Future Prospects Looking ahead to 2020, the increasing conflict of US-China trade war, oil war caused by Saudi Arabia and Russia, as well as the spread of the COVID-19 around the world, will affect the uncertainty and direction of the global economic. Countries of the world locked economy, has caused the decline of GDP and consumer market stagnation, governments reducing interest rates, tax cuts and subsidies. How quickly the outbreak of COVID-19 can be controlled, there is still a great deal of uncertainty. Global economic growth is expected to remain weak in 2020. Everest Textile is in the face of this wave of outbreaks caused by highly uncertain market and competition. Only in the spirit of focus on the innovative energy of research and development, strengthen the production of the industry, reduce the strength of the operating costs, and maintain the strength and cash. We need to be very cautious in the face of this severe global financial crisis. By the U.S.-China trade war and COVID-19 transfer effect, government industrial transformation policy, smart and efficient computing and other emerging technology continued to spread, Everest Textile uphold the spirit of "Smart Everest and Sustainable Innovation", with "Humanities x Science" research and development strategy, combined with trends and cooperation with brand customers, with the global layout of one-stop full-value innovation services, and constantly provide multi-functional, sustainable environmental protection fabrics and related garment innovative products and integration services. Make good use of existing core technology alliances with different industries, transition to industrial textiles, choose to match different materials and Everest Textile long fiber, short fiber,

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knitting elasticity and special finishing fit technology, and increase the use of cross-industry market fabrics. In 2020, we will expand its production, combining with the Global Apparel Research Center to provide ODM creative design services from fabric to garment, and inject new growth momentum into the six factories around the world.

Growth Momentum One: From Athleisure (Sports Leisure) Products To Lifestyle Products Based on market trends as the main axis, Everest Textile extends from functional fabrics to life-oriented product design, understanding the needs of consumers "clothing", and then develop more about work, leisure, yoga, jogging ... such as multi-functional products. Its product plan is as follows: 1. Ever Dura-Fila:Emphasize the same level of wear-resistant features as CORDURA products, and withelastic functions, not only wear comfortable and environmentally friendly non-fluorine water-dial function, but also be suitable for all-weather wear, protectinghuman safety and protecting the earth's sustainability.2. Ever E-2000 (Eco-made):With environmentally friendly materials for the idea, coupled with the macro-far falsetechnology, emphasizing the T-400 mechanical bullet has excellent elastic responserate, and has soft imitation cotton feel of the touch, and also be suitable for the fourseasons to wear. Its imitation fur special feel, suitable for the upper body and lowerbody fabric, which is Everest’s popular commodity.3. Ever woven fleece-long pile :By Everest Textile yarn dyeing technology, redefine soft shell products, which havefashionable and popular appearance, four-sided elastic design, and tissue plush warmon back side. It is suitable for autumn and winter season, different from the existingfit cloth species. It attracts the eyes of consumers, which is the main innovationproducts of Everest Textile.

Growth Momentum II: Transforming to Industrials Textiles In 2016-2020, the consumption of fiber for industrial textiles (including vehicles, marine, construction, medical and health and sports) will exceed the consumption of clothing textiles. Industrial textiles have become high-tech and many intellectual property rights as the main competitive industry. Everest Textile uses technology platforms to import smart and flame retardant materials, integrating existing fabric design and post-processing core technologies, jumping into new areas of knowledge to enter the market, and develop products such as Ever FR Work, MED wear, Ever Film and more items. The plan will be based on expanding partnerships with

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ecosystems, jointly developing new product services and new business models, and actively participating in the promotion.

Growth Momentum III: Garment production in Ethiopian Plant and Haiti Plant is gradually in mass production orders In the face of the US-China trade war and the outbreak of COVID-19, resulting in the reconstruction of global supply chain. The regional economy will temporarily replace the global mechanism of the situation. Everest Textile & Apparel integration of the global six factories geographical and its regional economic advantages can work together with third parties, to localize the regional supply chain to break the impact of COVID-19; Everest Textile with high-functional series of environmental protection products, integrated global layout advantages, can provide global customers to respond quickly to market demand, turn the crisis into a turning point, and create irreplaceable value: 1.Increase capacity efficiency and expand cost advantages: Create smart garmentfactories, by using automated production lines, de-skills to multiply efficiency, expandthe production capacity of the cable plant and the Haitian plant to reduce productioncosts, and provide customer advantage costs and services.

2.Combined with the expansion of fabric business to garment services and orders, theperiod to make self-use cloth to more than 50%, the integration of the main sub-material development and design of the printing team, the development of a series ofsample clothing and masks, protective clothing, to provide customers with highervalue, increase the profits of garments.3.Making good use of zero-tariff advantages, expanding the European, AmericanJapanese, and Thailand market: In the post-globalization time, we have layout of theworld close to the market. By using of North Carolina and three Asian fabric factories,with Haiti and Ethiopia garment factories to Europe, USA and Japan zero tariffadvantage, expanding the fabric and garment market.

D In conclusion

In 2019, after a turbulent global political and economic situation, the operating performance failed to meet the targets, coupled with the high investment and operating costs of the new three plants: US dyeing plant, Ethiopian garment factory, and Haitian garment factory. In the beginning of 2020 we are facing the situation of COVID-19 spreading around the world, oil war between Saudi Arabia and Russia, causing the 2020 global economic and financial prospects are unclear. The global climate is not optimistic. Everest Textile in line with its consistent mission and values,

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careful assessment, positive to face the challenges of this global change. The six global factories develop various contingency strategies, in addition to the past few years completed the “Moon Shooting 5+5 Global Layout Plan”, the construction of industrial 4.0 smart factory, AI to improve the efficiency and quality of the process, and began to implement the global talent leap strategy, emphasizing the talent cultivation and expansion of sales and research and development team, the future of the foundation of competitive revenue. In addition to continuing to enhance self-competitiveness with four forces, such as "innovation, wisdom, sustainability, and fine strength", we also actively communicate with professionals in the same industry, actively recruit talents, and build the foundation of Everest Group's sustainable growth with high-quality talent.

In 2020 based on the forward-looking global layout and continuous self-breakthrough of the leaping thinking, in addition to reducing operational risks and more implementation of sustainable management, Everest global six plants will strengthen the joint during the time in the US-China trade war and COVID-19 caused by the international large plant transfer effect. Global customers will be more understanding of Everest global layout of the integration advantages. The use of the Group's high-quality human and global resources, continue to refine product research and development and customer service, so that the Group leaps and bounds, sustainable operation and growth, and always with "2020 Everest to win the year" as the idea, Everest not only becomes a customer priority for long-term partners but also a shareholders, the national community appreciate the benchmark enterprise.

Chairman CEO & President Johnny Hih Ching-Lai Yeh

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II. Company Profile

2.1 Date of Incorporation: 0208, 1977

The company was established on February 8, 1988, with a registered capital of NT$1 billion. The first issue was NT$250 million. In order to construction of the factory, the capital was increased by NT$200 million in May. In August, the capital increased to NT$600 million, and it officially operated in October 1988.

2.2 Company History

1989A.D.: In June 1989, the factory was expanded, and the capital increased by NT$ 400 million. The paid-in capital was NT$1 billion. In the second year after the plant was opened, it was ranked 232nd in the import and export performance of the International Trade Bureau of the Ministry of Economic Affairs.

1990A.D: In October of 1990, in order to improve the financial structure, the capital was increased by NT$ 400 million, the total capital was NT$ 1400 million, and the registered capital was changed to NT$ 2 billion.

1992A.D.: In October 1992, the surplus was increased by NT$ 210 million and the capital reserve was increased by 140 million. The total capital amount was NT$1750 million. Dyeing three plants purchased three setting machines, one reduction machine, eighteen dyeing machines and other machines, and another printing plant added a plate printing machine. The Ministry of Economic Affairs and International Trade Bureau ranked 202nd in import-export performance, and was awarded the second prize, and was one of the manufacturers of the water pollution prevention demonstration of the Environmental Protection Department of the Executive Yuan for its outstanding environmental protection performance.

1993A.D.: In July 1993, the surplus was transferred to capital increase of NT$ 236,250,000, and the capital surplus was transferred to capital increase of NT$26,250,000. After the capital increase, the paid-in share capital is NT$2,012,500,000. In order to expand business and grasp global trade opportunities, Everest (Hong Kong) Co., Ltd. was reinvested and our company held 99% equity.

1994A.D.: In May 1994, the third re-elected meeting includes nine directors and two supervisors. In November 1994, the surplus was transferred to a capital increase of

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NT$211,312,500. After the capital increase, the paid-in share capital is NT$2,223,812,500.In October 1994, the Dyeing and Printing Division passed the ISO-9002 International Quality Assurance Standard Certification on March 18.

1995A.D.: In June 1995, the surplus was transferred to capital increase of $266,857,500, and the paid-up share capital was NT$2,490,670,000. On April 28, 1995, it was listed as the first class of stocks on the Taiwan Stock Exchange centralized market.

1996A.D.: Passed the ISO-9001 international quality assurance standard certification. In May 1996, the factory was expanded, and the surplus was changed to increase the capital by NT$249,067,000, and the capital was increased by 500 million. The total capital was NT$239,737,000.

1997A.D.: In May 1997, nine directors and two supervisors were re-elected. In order to expand the equipment and handle the surplus and capital surplus transfer to increase capital, the total capital amount is NT$323,973,700. For indirect investment in Asia, Bermuda Everest (Holdings) Co., Ltd. was established on July 10, 1997.

1998A.D.: In April 1998, for the expansion of equipment and the repayment of loans, the financial structure was strengthened, the surplus was changed, and the capital was increased to NT$605,830,820. The capital reserve was transferred to NT$106,911,320. The investment was increased to NT$356,400,000., and the total capital is NT$ 4632852840. Expand the new staple fiber fabric factory, integrate the long and short fiber technology research and development capabilities, and establish the company's core competitive advantage. Everest Factory in Thailand was established, with paid-in capital of 300 million baht.

1999A.D.: Passed ISO-14001 environmental management system certification in March of 1999.In August 1999, the surplus was transferred to increase capital with NT$555,942,340,the total capital amount was NT$5,188,795,180.Obtained Oeko-Tex standard 100 environmental certification in October 1999.

2000A.D.: In May 2000, re-elected nine directors and two supervisors of the fifth term meeting.In August 1989, the capital surplus was transferred to capital increase, and the totalcapital amount was NT$259,439,760, and the total capital was NT$5,448,234,940. Andapply for R & D technology projects and electronic funds, so that the companycontinues to enhance R & D strength and expand marketing competitiveness.

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2001A.D.: In 2001, the treasury stocks were reduced by NT$796,980,000. After the capital reduction, the capital amount was NT$ 4,651,254,940.

2002A.D.: In September 2002, the capital reserve was transferred to increase capital for NT$136,039,340, after the capital increase, the capital amount was NT$4,670,684,280.

2003A.D.: In October 2003, the Thai factory increased its capital by 200 million baht, and the total capital was 500 million baht, which expanded the second dye factory in Thailand.

2004A.D.: In August 2004, the capital surplus was transferred to capital increase ofNT$140,120,530. The capital amount after the capital increase was NT$4,810,804,810.In 2004, the Thai factory expanded the weaving factory and purchased 200 new looms.

2005A.D.: In August 2005, the capital surplus was transferred to capital increase NT$96,216,110, and the capital after the capital increase was NT$4,907,020,910.

2006A.D.: In July 2006, Everest Development (Shanghai) Co., Ltd. was established.In August 2006, the treasury stocks were reduced by NT$101,000,000, the capitalsurplus was converted to a capital increase of NT$98,140,420, and the capital after theincrease and decrease of capital was NT$4,904,161,330.

2008A.D.: Obtained certification from the international textile environmental certificationcompany, bluesign® technology in April 2008New business items for medical equipment (cloth used) were added in December 2008.

2009A.D.: In March 2009, our company joined the American Wildlife Conservation AssociationThe Conservation Alliance as a member.In May 2009, it became the first company in Asia to receive bluesign® certification forcoating and laminating products.

2010A.D.: The first company in Taiwan's textile industry to pass the SA8000 certification in December 2010.

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2011A.D.: In August 2011, Garment Department was established and its own brand "EverSmile" was established to create a happy Taiwan.

2014A.D.: Obtained ISO 50001 energy management system certification in December 2014.

2015A.D.: The ERP system was replaced with SAP in April 2015 and went online in November.

2016A.D.: In December 2016, our company obtained Outstanding Workplace Certification, and we were awarded by the Tainan City Health Bureau Medal for Outstanding Workplace Health.

2017A.D.: It was approved by ISO 14001:2015 in March 2017.In June 2017, it was approved by SA8000: 2014 revision.In December 2017, our company was awarded the "Thank You for Investing inAmerica" award by the American Institute in Taiwan.

2019A.D.: In November 2019, the "Happy Taiwan Public Welfare Marathon-The Love of theMountain Waterway" event was held.In December 2019, our company was awarded the "Green Building Corporate SocialResponsibility Model Award" by the Taiwan Green Building CouncilIn December 2019, it was awarded the "Low Carbon Building Contribution Award" bythe Low Carbon Building Alliance..

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3.1.2 Major Corporate Functions Department Functions

General Manager's Office Strategic planning, business planning authorization and supervision, and global sourcing.

Audit Office To identify deficiencies in the internal control system, assess the effectiveness and efficiency of operations, and provide appropriate improvement suggestions to ensure the effectiveness of the internal control system as well as for continuous improvement.

Human Resources Responsible for the planning and execution of human resource management.

Digital Service Center Planning and execution of company network, information, automation and other related affairs.

Advanced Technology Research Institute

Key technology, raw material development, post-processing development.

Research & Development Division

Advanced product and technology research and development, intellectual property development and management.

Sales & Marketing Dept. Responsible for corporate image planning, maintaining and enhancing external public relations, corporate marketing activities worldwide, and analyzing industry data and trends. It is also in charge of formulating and implementing corporate marketing and product plans.

Administration Dept. Planning and execution of general affairs, factory affairs, and information systems.

Yarn Processing Division Production of false twisting and chasing twisting of polyester yarn.

Weaving Division Weaving production of various natural, artificial, synthetic fiber gauze and blended gauze.

Dyeing & Finishing Division Printing and dyeing processing of yarn, silk and cloth and post-processing of finished cloth

Production Dept. Responsible for product manufacturing and production capacity allocation.

Utilities Dept. The company's power, steam, soft water supply and machine maintenance.

Global Apparel I, R, D Garment design, production, sales, operation control

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15

Rep

rese

ntat

ive

of Y

ue

Yuan

Inve

stm

ent C

o.,

Ltd.

Pa

rtner

Acc

ount

ant o

f M

GI E

xcel

lenc

e &

Co.

, C

PAs

Dire

ctor

R

.O.C

. H

aw S

heng

Li

n M

06

.12.

18

3

06.1

2 18

Law

yer

Dep

artm

ent o

f Law

, Tu

ngha

i Uni

vers

ity

Supe

rvis

or

R.O

.C.

Shio

u C

hung

C

hen

M

06.1

2.

18

3 06

.12

18

Cha

irman

of T

ah T

ong

Text

ile C

o., L

td

Feng

Chi

a U

nive

rsity

B

usin

ess M

anag

emen

t D

epar

tmen

t

Supe

rvis

or

R.O

.C.

Jen

Fa

Che

n M

06

.12.

18

3

06.1

2 18

Dep

artm

ent o

f Law

, N

CC

U

Cha

irman

of C

hyan

g Sh

eng

Dye

ing

&

Fini

shin

g C

o., L

td

Supe

rvis

or

R.O

.C.

Yin

Chi

C

huan

g M

06

.12.

18

3

06.1

2 18

D

irect

or o

f Gua

ngw

ei

Inve

stm

ent C

ompa

ny

- 13 -

Maj

or sh

areh

olde

rs o

f the

inst

itutio

nal s

hare

hold

ers

04 3

0, 2

020

Not

e: If

the

inst

itutio

nal s

hare

hold

er is

not

a c

ompa

ny, t

he n

ames

and

shar

ehol

ding

ratio

of s

hare

hold

ers t

o be

dis

clos

ed a

re th

e na

mes

of p

eopl

e w

ho c

ontri

bute

d or

don

ated

the

capi

tal a

nd th

e ra

tio o

f the

ir co

ntrib

utio

n or

don

atio

n.

Maj

or sh

areh

olde

rs o

f the

Com

pany

’s m

ajor

inst

itutio

nal s

hare

hold

ers

04 3

0, 2

020

Nam

e of

Inst

itutio

nal S

hare

hold

ers

Maj

or S

hare

hold

ers

Yuan

Din

g In

vest

men

t Co.

, Ltd

. Fa

r Eas

tern

New

Cen

tury

Cor

p. (3

7.13

); A

sia C

emen

t Cor

p. (3

5.50

); D

er C

hing

Inve

stm

ent

Cor

p.(1

4.50

); Y

uan-

Din

g C

o., L

td. (

12.8

6)

Wei

yu In

nova

tion

Inve

stm

ent C

o., L

td.

John

ny H

ih(4

7.07

); H

su,H

sueh

-Fan

g(47

.07)

; Hsi

,Chi

-Jen

(2.9

3); W

u,Li

-Hsi

an(0

.52)

Shuo

Qua

n C

o., L

td.

Yeh,

Yu-W

en(6

.66)

; Yeh

,Yu-

Feng

(6.6

6); L

in H

uang

, Chu

an-C

hih(

1.66

)

Yu Y

uan

Inve

stm

ent C

o., L

td.

Asi

a C

emen

t C

orp.

(29

.92)

; Yua

n-D

ing

Co.

, Ltd

. (25

.02)

; Yua

n D

ing

Inve

stm

ent

Co.

, Ltd

. (1

8.96

); U

-Min

g M

arin

e Tr

ansp

ort C

orp.

(17.

66);

Din

g Sh

en In

vest

men

t Co.

, Ltd

. (6.

50);

Yue

Tung

Inve

stm

ent C

o., L

td. (

1.84

); Yu

e D

ing

Indu

strie

s Co.

, Ltd

. (0.

10)

Yue

Din

g In

dust

ry C

o., L

td.

Fu D

a Tra

nspo

rt C

o., L

td. (

26.9

5), Y

ue T

ung

Inve

stm

ent C

o., L

td. (

25.3

6), A

n H

o G

arm

ent C

o.,

Ltd.

(15.

66),

Din

g Yu

an In

tern

atio

nal I

nves

tmen

t Co.

, Ltd

. (13

.20)

, Ton

Fu

Inve

stm

ent C

orp.

(4

.61)

, Ya L

i Pre

cast

Pre

-stre

ssed

Con

cret

e Ind

ustri

es C

orp.

(3.8

9), D

a Ju

Fibe

r Co.

, Ltd

. (3.

89),

Yuan

-Din

g C

o., L

td. (

2.59

), B

ai D

ing

Inve

stm

ent C

o., L

td. (

2.31

), U

-Min

g C

omm

erce

Co.

, Ltd

. (1

.53)

, Far

Eas

tern

App

arel

Co.

, Ltd

.(0.0

1)

Nam

e of

Inst

itutio

nal S

hare

hold

ers

Maj

or S

hare

hold

ers

Far E

aste

rn N

ew C

entu

ry C

orpo

ratio

n A

sia

Cem

ent

Cor

p (2

3.77

), O

rient

al I

nstit

ute

of T

echn

olog

y (4

.81)

, Fa

r Ea

ster

n M

edic

al

Foun

datio

n (3

.61)

, Far

Eas

tern

Y Z

Hsu

Sci

ence

and

Tec

hnol

ogy

Mem

oria

l Fou

ndat

ion

(3.4

2),

Yuan

Ze U

nive

rsity

(2.7

4), N

an S

han

Life

Insu

ranc

e Co

Ltd

(2.8

9), C

hina

Life

Insu

ranc

e Co

Ltd

(1.8

5)

Dou

glas

Ton

g H

su (1

.71)

, Der

Chi

ng In

vest

men

t Cor

p (1

.55)

, Chu

ngw

a Po

st (1

.38)

- 14 -

Nam

e of

Inst

itutio

nal S

hare

hold

ers

Maj

or S

hare

hold

ers

Asi

a C

emen

t Cor

pora

tion

Far E

aste

rn N

ew C

entu

ry C

orp

(22.

33),

Far E

aste

rn M

edic

al F

ound

atio

n (5

.40)

, Wor

ker P

ensi

on

Man

agem

ent C

omm

issi

on o

f Far

Eas

tern

New

Cen

tury

Cor

p (1

.55)

, Yua

n D

ing

Inve

stm

ent C

o Lt

d(1.

53),

Yuan

ta/P

shar

es T

aiw

an D

ivid

end

Plus

ETF

und

er th

e cu

stod

y of

Cat

hy U

nite

d B

ank

(1.5

1), F

ar E

aste

rn D

epar

tmen

t Sto

res (

1.49

), Yu

an Z

e U

nive

rsity

(1.4

1),

Far E

aste

rn Y

Z H

su S

cien

ce a

nd T

echn

olog

y M

emor

ial F

ound

atio

n (1

.31)

, Yu

Yuan

Inve

stm

ent

Co

Ltd

(1.2

9), Y

u C

hang

Inve

stm

ent C

o Lt

d (1

.26)

U-M

ing

Mar

ine

Tran

spor

t Cor

p.

Asi

a C

emen

t Cor

p (3

9.25

), Su

perv

isor

y B

oard

of P

ublic

Ser

vice

Pen

sion

Fun

d (2

.08)

, Cat

hay

Life

Insu

ranc

e C

o Lt

d (1

.60)

, Yua

n D

ing

Inve

stm

ent C

o Lt

d (1

.05)

, Fub

on L

ife In

sura

nce

Co

Ltd

(1.0

4),

Cap

e A

nn G

loba

l D

evel

opin

g M

arke

ts F

und

acco

unt

held

und

er t

he c

usto

dy o

f Ta

iwan

Ban

k (1

), Yu

e Yu

an I

nves

tmen

t Co

Ltd(

0.94

), D

ing

Shen

Inv

estm

ent C

o Lt

d (0

.94)

, Tr

ans G

lobe

Life

Insu

ranc

e In

c. (0

.93)

, Asi

a In

vest

men

t Cor

p (0

.92)

Yuan

-Din

g C

o., L

td.

Far

East

ern

New

Cen

tury

Cor

pora

tion

(37.

13);

Asi

a C

emen

t Cor

pora

tion

(35.

50);

Der

Chi

ng

Inve

stm

ent C

o., L

td. (

14.5

0); Y

uan

Din

g In

vest

men

t Co.

, Ltd

. (12

.86)

Da

Ju F

iber

Co.

, Ltd

. Yu

an D

ing

Inve

stm

ent

Co.

, Lt

d. (

41.8

6);

Yue

Din

g In

dust

ries

Co.

, Lt

d. (

38.7

6);

Yue

Lee

Inve

stm

ent C

o., L

td. (

19.3

8)

U-M

ing

Com

mer

ce C

o., L

td.

Bai

Din

g In

vest

men

t Co.

, Ltd

. (47

); Yu

an D

ing

Inve

stm

ent C

o., L

td. (

45.5

); Yu

e D

ing

Indu

strie

s C

o., L

td. (

5); D

ing

& D

ing

Man

agem

ent C

onsu

ltant

s C

o., L

td. (

1); Y

uan-

Din

g C

o., L

td. (

1);

Yuan

Din

g Le

asin

g C

o., L

td. (

0.5)

Fu D

a Tr

ansp

ort C

o., L

td.

Fu M

ing

Tran

spor

tatio

n C

o., L

td. (

99.8

7); A

sia

Inve

stm

ent C

orp.

(0.0

3)

Yue

Tung

Inve

stm

ent C

o., L

td.

U-M

ing

Mar

ine

Tran

spor

t Cor

p. (

73.5

4); U

-Min

g M

arin

e Tr

ansp

ort (

Sing

apor

e) P

rivat

e Lt

d.

(26.

46)

An

Ho

Gar

men

t Co.

, Ltd

. Fa

r Eas

tern

New

Cen

tury

Cor

p. (1

00)

Din

g Yu

an I

nter

natio

nal

Inve

stm

ent

Co.

, Lt

d.

Far E

aste

rn N

ew C

entu

ry C

orp.

(100

)

Ton

Fu In

vest

men

t Cor

p.

Orie

ntal

Uni

on C

hem

ical

Cor

p. (1

00)

Ya

Li

Prec

ast

Pre-

stre

ssed

C

oncr

ete

Indu

strie

s Cor

p.

Asi

a C

emen

t Cor

pora

tion

(83.

81);

Far-E

aste

rn C

onst

ruct

ion

Engi

neer

ing

Co.

, Ltd

. (16

.03)

- 15 -

Not

e: If

the

inst

itutio

nal s

hare

hold

er is

not

a c

ompa

ny, t

he n

ames

and

shar

ehol

ding

ratio

of s

hare

hold

ers t

o be

dis

clos

ed a

re th

e na

mes

of p

eopl

e w

ho c

ontri

bute

d or

don

ated

the

capi

tal a

nd th

e ra

tio o

f the

ir co

ntrib

utio

n or

don

atio

n.

Nam

e of

Inst

itutio

nal S

hare

hold

ers

Maj

or S

hare

hold

ers

Bai

Din

g In

vest

men

t Co.

, Ltd

. Fa

r Eas

tern

Dep

artm

ent S

tore

s (66

.66)

; Bai

Yan

g In

vest

men

t Co

Ltd

(33.

34)

Yuan

Ton

g In

vest

men

t Co.

, Ltd

. Fa

r Eas

tern

New

Cen

tury

Cor

p. (1

00)

Din

g Sh

en In

vest

men

t Co.

, Ltd

. Yu

an T

ong

Inve

stm

ent C

o., L

td. (

18);

Asi

a In

vest

men

t Co.

, Ltd

. (18

); B

ai D

ing

Inve

stm

ent C

o.,

Ltd.

(18)

; Don

g Fu

Inve

stm

ent C

o., L

td. (

18);

Yue

Tung

Inve

stm

ent C

o., L

td. (

18);

Yue

Din

g In

dust

ries C

o., L

td. (

5); D

a Ju

Fib

er C

o., L

td. (

5)

Far E

aste

rn A

ppar

el C

o., L

td.

Yuan

Din

g In

vest

men

t Co.

, Ltd

. (10

0)

Der

Chi

ng In

vest

men

t Cor

pora

tion

Asi

a C

emen

t Cor

pora

tion

(99.

99),

Asi

a In

vest

men

t Cor

p (0

.01)

- 16 -

Prof

essi

onal

qua

lific

atio

ns a

nd in

depe

nden

ce a

naly

sis o

f dir

ecto

rs a

nd su

perv

isor

s 03

31,

202

0

Not

e: P

leas

e tic

k th

e co

rres

pond

ing

boxe

s tha

t app

ly to

the

dire

ctor

s or s

uper

viso

rs d

urin

g th

e tw

o ye

ars p

rior t

o be

ing

elec

ted

or d

urin

g th

e te

rm

of o

ffice

.

Crit

eria

Nam

e

Mee

t One

of t

he F

ollo

win

g Pr

ofes

sion

al Q

ualif

icat

ion

Req

uire

men

ts, T

oget

her w

ith a

t Lea

st

Five

Yea

rs W

ork

Expe

rienc

e In

depe

nden

ce C

riter

ia (N

ote)

N

umbe

r of

Oth

er P

ublic

C

ompa

nies

in

Whi

ch th

e In

divi

dual

is

Con

curr

ently

Se

rvin

g as

an

Inde

pend

ent

Dire

ctor

An

Inst

ruct

or o

r Hig

her

Posi

tion

in a

Dep

artm

ent o

f C

omm

erce

, Law

, Fin

ance

, A

ccou

ntin

g, o

r Oth

er

Aca

dem

ic D

epar

tmen

t Rel

ated

to

the

Bus

ines

s Nee

ds o

f the

C

ompa

ny in

a P

ublic

or P

rivat

e Ju

nior

Col

lege

, Col

lege

or

Uni

vers

ity

A Ju

dge,

Pub

lic P

rose

cuto

r, A

ttorn

ey, C

ertif

ied

Publ

ic

Acc

ount

ant,

or O

ther

Pr

ofes

sion

al o

r Tec

hnic

al

Spec

ialis

t Who

has

Pas

sed

a N

atio

nal E

xam

inat

ion

and

been

Aw

arde

d a

Cer

tific

ate

in a

Pr

ofes

sion

Nec

essa

ry fo

r the

B

usin

ess o

f the

Com

pany

Hav

e W

ork

Expe

rienc

e in

the

Are

as o

f Com

mer

ce, L

aw,

Fina

nce,

or A

ccou

ntin

g, o

r O

ther

wis

e N

eces

sary

for t

he

Bus

ines

s of t

he C

ompa

ny

1 2

3 4

5 6

7 8

9 10

11

12

John

ny H

ih

X

X

X

X

X

X

X

X

Don

glas

To

ng H

su

X

X

X

X

X

X

X

X

X

Kao

Sha

n W

u X

X

X

X

X

X

X

X

X

Eric

Hu

X

X

X

X

X

X

X

X

X

X

X

X

Chi

ng-L

ai

Yeh

X

X

X

X

X

X

X

X

X

Shou

-Chu

n Ye

h X

X

X

X

X

X

X

X

X

X

X

X

X

Haw

She

ng

Lin

X

X

X

X

X

X

X

X

X

X

X

X

Cha

rles

Wan

g X

X

X

X

X

X

X

X

X

X

X

X

X

X

Shio

u C

hung

Che

n X

X

X

X

X

X

X

X

X

X

X

X

Jen

Fa

Che

n X

X

X

X

X

X

X

X

X

X

X

X

Yin

Chi

C

huan

g X

X

X

X

X

X

X

X

X

X

X

X

- 17 -

1.N

ot a

n em

ploy

ee o

f the

com

pany

or a

ny o

f its

affi

liate

s.2.

Not

a d

irect

or o

r sup

ervi

sor o

f the

com

pany

or a

ny o

f its

affi

liate

s. N

ot a

pply

to in

depe

nden

t dire

ctor

s ap

poin

ted

in a

ccor

danc

e w

ith th

eA

ct o

r the

law

s and

regu

latio

ns o

f the

loca

l cou

ntry

by,

and

con

curr

ently

serv

ing

as su

ch a

t, a

publ

ic c

ompa

ny a

nd it

s par

ent o

r sub

sidi

ary

or a

subs

idia

ry o

f the

sam

e pa

rent

.3.

Not

a n

atur

al-p

erso

n sh

areh

olde

r who

hol

ds sh

ares

, tog

ethe

r with

thos

e he

ld b

y th

e pe

rson

's sp

ouse

, min

or c

hild

ren,

or h

eld

by th

e pe

rson

unde

r oth

ers'

nam

es, i

n an

agg

rega

te o

f one

per

cent

or m

ore

of th

e to

tal n

umbe

r of i

ssue

d sh

ares

of t

he c

ompa

ny o

r ran

king

in th

e to

p 10

in h

oldi

ngs.

4.N

ot a

spo

use,

rela

tive

with

in th

e se

cond

deg

ree

of k

insh

ip, o

r lin

eal r

elat

ive

with

in th

e th

ird d

egre

e of

kin

ship

, of a

man

ager

ial o

ffice

run

der s

ubpa

ragr

aph

1 or

any

of t

he p

erso

ns in

the

prec

edin

g tw

o su

bpar

agra

phs.

5.N

ot a

dire

ctor

, sup

ervi

sor,

or e

mpl

oyee

of a

cor

pora

te s

hare

hold

er th

at d

irect

ly h

olds

five

per

cent

or m

ore

of th

e to

tal n

umbe

r of i

ssue

dsh

ares

of t

he c

ompa

ny, o

r tha

t ran

ks a

mon

g th

e to

p fiv

e in

sha

reho

ldin

gs, o

r tha

t des

igna

tes

its re

pres

enta

tive

to s

erve

as

a di

rect

or o

rsu

perv

isor

of

the

com

pany

und

er A

rticl

e 27

, par

agra

ph 1

or

2 of

the

Com

pany

Act

. Not

app

ly to

inde

pend

ent d

irect

ors

appo

inte

d in

acco

rdan

ce w

ith th

e Act

or t

he la

ws a

nd re

gula

tions

of t

he lo

cal c

ount

ry b

y, a

nd c

oncu

rren

tly se

rvin

g as

such

at,

a pu

blic

com

pany

and

its

pare

nt o

r sub

sidi

ary

or a

subs

idia

ry o

f the

sam

e pa

rent

.6.

If a

maj

ority

of t

he c

ompa

ny's

dire

ctor

sea

ts o

r vot

ing

shar

es a

nd th

ose

of a

ny o

ther

com

pany

are

con

trolle

d by

the

sam

e pe

rson

: not

adi

rect

or, s

uper

viso

r, or

em

ploy

ee o

f tha

t oth

er c

ompa

ny. N

ot a

pply

to in

depe

nden

t dire

ctor

s ap

poin

ted

in a

ccor

danc

e w

ith th

e A

ct o

r the

law

s an

d re

gula

tions

of

the

loca

l cou

ntry

by,

and

con

curr

ently

ser

ving

as

such

at,

a pu

blic

com

pany

and

its

pare

nt o

r su

bsid

iary

or

asu

bsid

iary

of t

he sa

me

pare

nt.

7.If

the

chai

rper

son,

gen

eral

man

ager

, or p

erso

n ho

ldin

g an

equ

ival

ent p

ositi

on o

f the

com

pany

and

a p

erso

n in

any

of t

hose

pos

ition

s at

anot

her

com

pany

or i

nstit

utio

n ar

e th

e sa

me

pers

on o

r are

spo

uses

: not

a d

irect

or (

or g

over

nor)

, sup

ervi

sor,

or e

mpl

oyee

of t

hat o

ther

com

pany

or i

nstit

utio

n. N

ot a

pply

to in

depe

nden

t dire

ctor

s ap

poin

ted

in a

ccor

danc

e w

ith th

e Act

or t

he la

ws

and

regu

latio

ns o

f the

loca

lco

untry

by,

and

con

curr

ently

serv

ing

as su

ch a

t, a

publ

ic c

ompa

ny a

nd it

s par

ent o

r sub

sidi

ary

or a

sub

sidi

ary

of th

e sa

me

pare

nt.

8.N

ot a

dire

ctor

, sup

ervi

sor,

offic

er, o

r sha

reho

lder

hol

ding

five

per

cent

or m

ore

of th

e sh

ares

, of a

spec

ified

com

pany

or i

nstit

utio

n th

at h

asa

finan

cial

or b

usin

ess r

elat

ions

hip

with

the

com

pany

. Not

app

ly to

inde

pend

ent d

irect

ors a

ppoi

nted

in a

ccor

danc

e w

ith th

e Act

or t

he la

ws

and

regu

latio

ns o

f the

loca

l cou

ntry

by,

and

con

curr

ently

serv

ing

as su

ch a

t, a

publ

ic c

ompa

ny a

nd it

s par

ent o

r sub

sidi

ary

or a

subs

idia

ry

- 18 -

of th

e sa

me

pare

nt, i

f the

spe

cifie

d co

mpa

ny o

r ins

titut

ion

hold

s 20

per

cent

or m

ore

and

no m

ore

than

50

perc

ent o

f the

tota

l num

ber o

f is

sued

shar

es o

f the

pub

lic c

ompa

ny.

9.N

ot a

pro

fess

iona

l ind

ivid

ual w

ho, o

r an

owne

r, pa

rtner

, dire

ctor

, sup

ervi

sor,

or o

ffice

r of a

sole

pro

prie

tors

hip,

par

tner

ship

, com

pany

, or

inst

itutio

n th

at, p

rovi

des

audi

ting

serv

ices

to th

e co

mpa

ny o

r any

affi

liate

of t

he c

ompa

ny, o

r tha

t pro

vide

s co

mm

erci

al, l

egal

, fin

anci

al,

acco

untin

g or

rel

ated

ser

vice

s to

the

com

pany

or

any

affil

iate

of

the

com

pany

for

whi

ch th

e pr

ovid

er in

the

past

2 y

ears

has

rec

eive

dcu

mul

ativ

e co

mpe

nsat

ion

exce

edin

g N

T$50

0,00

0, o

r a

spou

se t

here

of;

prov

ided

, thi

s re

stric

tion

does

not

app

ly t

o a

mem

ber

of t

here

mun

erat

ion

com

mitt

ee, p

ublic

ten

der

offe

r re

view

com

mitt

ee, o

r sp

ecia

l co

mm

ittee

for

mer

ger/c

onso

lidat

ion

and

acqu

isiti

on, w

hoex

erci

ses p

ower

s pur

suan

t to

the A

ct o

r to

the

Bus

ines

s Mer

gers

and

Acq

uisi

tions

Act

or r

elat

ed la

ws o

r reg

ulat

ions

.10

.Not

hav

ing

a m

arita

l rel

atio

nshi

p, o

r a re

lativ

e w

ithin

the

seco

nd d

egre

e of

kin

ship

to a

ny o

ther

dire

ctor

of t

he C

ompa

ny.

11.N

ot b

een

a pe

rson

of a

ny c

ondi

tions

def

ined

in A

rticl

e 30

of t

he C

ompa

ny L

aw.

12.N

ot a

gov

ernm

enta

l, ju

ridic

al p

erso

n or

its r

epre

sent

ativ

e as

def

ined

in A

rticl

e 27

of t

he C

ompa

ny L

aw.

- 19 -

3.2.

2 M

anag

emen

t Tea

m

Title

N

atio

-nal

ityN

ame

Gen

der

Dat

e

Effe

ctiv

e

Shar

ehol

ding

Sp

ouse

& M

inor

Shar

ehol

ding

Shar

ehol

ding

by

Nom

inee

A

rran

gem

ent

Expe

rienc

e

Educ

atio

nN

ote1

Man

ager

s who

are

Spou

ses o

r With

in T

wo

Deg

rees

of K

insh

ip

Rem

ark(

s)

(Not

e2)

Shar

es

Shar

es

Shar

es

Title

N

ame

Rel

atio

n

Pres

iden

t R

.O.C

. C

hing

Lai

Ye

h M

77

.02.

08

Prov

inci

al

Taip

ei In

stitu

te

of T

echn

olog

y N

/AN

/A

N/A

N/A

N/A

Vic

e Pr

e.

R.O

.C.

Wen

Kue

i H

sian

g M

95

.06.

01

Nat

iona

l Tai

pei

Uni

vers

ity o

f B

usin

ess

N/A

N/A

N/A

N/A

N/A

Vic

e Pr

e.

R.O

.C.

Chi

n C

hueh

Kao

F

103.

03.0

1 N

atio

nal C

heng

K

ung

Uni

vers

ity

N/A

N/A

N/A

N/A

N/A

Vic

e Pr

e.

R.O

.C.

Hsi

en

Shen

Hun

g M

10

7.03

.19

Kun

Sha

n U

nive

rsity

N

/AN

/AN

/AN

/AN

/A

Vic

e Pr

e.

R.O

.C.

Sen

Mao

W

u M

10

7.03

.16

Feng

Chi

a U

nive

rsity

N

/AN

/AN

/AN

/AN

/A

Vic

e Pr

e.

R.O

.C.

Min

g Y

i H

siao

M

10

1.01

.01

Nat

iona

l Tai

wan

U

nive

rsity

of

Scie

nce

and

Tech

nolo

gy

N/A

N/A

N/A

N/A

N/A

Vic

e Pr

e.

R.O

.C.

Chi

n Li

ang

Che

n M

10

8.03

.19

Far E

ast

Uni

vers

ity

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. W

en C

hin

Yeh

M

107.

04.0

1 K

un S

han

Uni

vers

ity

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. Sh

ih Ju

ng

Lin

M

107.

12.0

5 K

un S

han

Uni

vers

ity y

N

/AN

/AN

/AN

/AN

/A

Dire

ctor

R

.O.C

. H

ui M

in

Che

ng

F 10

7.11

.10

Tam

kang

U

nive

rsity

N

/AN

/AN

/AN

/AN

/A

Dire

ctor

R

.O.C

. M

ei N

a Li

u F

108.

02.1

4 Pr

ovin

cial

Ta

ipei

Inst

itute

of

Tec

hnol

ogy

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. Pi

ng L

iang

C

hen

M

108.

02.1

4 Tu

ngha

i U

nive

rsity

N

/AN

/AN

/AN

/AN

/A

- 20 -

Not

e1: C

urre

ntly

hol

ding

pos

ition

s in

othe

r com

pani

es

Not

e2: T

here

is n

o si

tuat

ion

in th

e co

mpa

ny w

here

the

chai

rman

and

the

gene

ral m

anag

er o

r equ

ival

ents

(the

top

man

ager

) are

the

sam

e pe

rson

, ar

e sp

ouse

s or r

elat

ives

of e

ach

othe

r.

Dire

ctor

R

.O.C

. Tu

ng

Shen

g H

ung

M

106.

06.0

5 Fa

r Eas

t U

nive

rsity

N

/AN

/AN

/AN

/AN

/A

Dire

ctor

R

.O.C

. Y

i Che

ng

Tsen

g M

10

7.09

.14

Orie

ntal

In

stitu

te o

f Te

chno

logy

N

/AN

/AN

/AN

/AN

/A

Dire

ctor

R

.O.C

. C

hien

Hua

K

ao

M

107.

04.0

1 Q

iang

Shu

Hig

h Sc

hool

N

/AN

/AN

/AN

/AN

/A

Dire

ctor

R

.O.C

. C

hin

Li

Kao

F

108.

01.0

1 Ta

ipei

Jing

wen

H

igh

Scho

ol

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. H

uang

Sh

an L

in

M

108.

01.0

1 Fe

ng C

hia

Uni

vers

ity

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. H

sian

g Ju

i Li

u M

U

nive

rsity

of

the

Inca

rnat

e W

ord

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. Ti

ng H

ua

Hun

g M

Ta

mka

ng

Uni

vers

ity

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. Fu

Yu

Chi

u M

K

un S

han

Uni

vers

ity

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. W

en

Gua

ng L

uo

M

Nat

iona

l Che

ng

Kun

g U

nive

rsity

EM

BA

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. C

hiun

g H

ua H

su

F G

olde

n G

ate

Uni

vers

ity

N/A

N/A

N/A

N/A

N/A

Dire

ctor

R

.O.C

. Lu

ng C

hih

Che

n M

Fu

Jen

Cat

holic

U

nive

rsity

N

/AN

/AN

/AN

/AN

/A

Dire

ctor

R

.O.C

. Ts

ung

Hun

g Li

M

Nat

iona

l Pei

-K

ang

Agr

icul

tura

l &

Indu

stria

l Vo

catio

nal H

igh

Scho

ol

N/A

N/A

N/A

N/A

N/A

Man

ager

R

.O.C

. M

ei H

siu

Hua

ng

F Ta

inan

U

nive

rsity

of

Tech

nolo

gy

N/A

N/A

N/A

N/A

N/A

- 21 -

3.2.

3 R

emun

erat

ion

of D

irec

tors

, Ind

epen

dent

Dir

ecto

rs, S

uper

viso

rs, P

resi

dent

, and

Vic

e Pr

esid

ents

Rem

uner

atio

n of

Dir

ecto

rs a

nd In

depe

nden

t Dir

ecto

rs

Uni

t: N

T$ th

ousa

nds

Not

e 1:

The

bus

ines

s exe

cutio

n co

sts r

efer

red

to in

this

tabl

e ar

e th

e ac

tual

issu

ed in

201

9.

Not

e 2:

Non

e of

the

com

pani

es in

the

com

pany

and

the

cons

olid

ated

stat

emen

ts is

sued

stoc

k di

vide

nds f

rom

em

ploy

ee st

ock

optio

ns, n

ew sh

ares

with

rest

ricte

d em

ploy

ee ri

ghts

, and

em

ploy

ee b

onus

es.

Title

N

ame

Rem

uner

atio

n R

atio

of T

otal

R

emun

erat

ion

(A+B

+C+D

) to

Net

In

com

e (%

)

Rel

evan

t Rem

uner

atio

n R

ecei

ved

by D

irect

ors W

ho a

re A

lso E

mpl

oyee

s R

atio

of T

otal

C

ompe

nsat

ion

(A+B

+C+D

+E+F

+G) t

o N

et In

com

e (%

) R

emun

erat

ion

from

ven

ture

s ot

her t

han

subs

idia

ries o

r fro

m th

e pa

rent

co

mpa

ny

(Not

e)

Base

Com

pens

atio

n (A

) Se

vera

nce

Pay

(B)

Dire

ctor

s C

ompe

nsat

ion(

C)

Allo

wan

ces (

D)

Sala

ry, B

onus

es, a

nd

Allo

wan

ces (

E)

Seve

ranc

e Pa

y (F

) Em

ploy

ee C

ompe

nsat

ion

(G)

The

com

pany

All

com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es in

the

cons

olid

ated

fin

anci

al

stat

emen

ts

The

com

pany

Com

pani

es

in th

e co

nsol

idat

ed

finan

cial

st

atem

ents

C

ash

Stoc

k C

ash

Stoc

k

Cha

irman

Jo

hnny

Hih

Dire

ctor

Don

glas

To

ng H

su

Kao

Sha

n W

u

Eric

Hu

Chi

ng-L

ai

Yeh

Shou

-Chu

n Ye

h

Haw

She

ng

Lin

Cha

rles

Wan

g

Inde

pend

ent

Dire

ctor

Shio

u C

hung

C

hen

Jen

Fa C

hen

Yin

Chi

C

huan

g 1.

The

boar

d of

dire

ctor

s will

neg

otia

te th

e m

onth

ly p

aym

ent s

tand

ard

acco

rdin

g to

the

com

pany

’s c

harte

r and

the

indu

stry

leve

l. Th

e fix

ed re

mun

erat

ion

is pa

id, b

ut n

ot p

artic

ipat

es in

the

dist

ribut

ion

of c

ompe

nsat

ion

whe

n th

e co

mpa

ny m

akes

a p

rofit

. In

cons

ider

atio

n of

the

com

pany

's in

dustr

y ch

arac

teris

tics a

nd o

pera

ting/

asse

t sca

le, t

he in

depe

nden

t dire

ctor

's re

mun

erat

ion

refle

cts i

ts a

utho

rity

and

bala

nce.

It sh

ould

be

reas

onab

le.

2.In

add

ition

to th

e ab

ove

rem

uner

atio

n, d

irect

or re

mun

erat

ion

shal

l be

disc

lose

d as

follo

ws w

hen

rece

ived

from

com

pani

es in

clud

ed in

the

cons

olid

ated

fina

ncia

l sta

tem

ents

in th

e m

ost r

ecen

t yea

r to

com

pens

ate

dire

ctor

s for

thei

r ser

vice

s, su

ch a

s bei

ng in

depe

nden

t con

tract

ors.

Non

e.

- 22 -

Not

e3: R

epre

sent

ativ

es o

f Yua

n D

ing

Inve

stm

ent C

o., L

td.:

Don

glas

Ton

g H

su, K

ao S

han

Wu,

Eric

Hu;

Rep

rese

ntat

ives

of Y

ue D

ing

Indu

stry

Co.

, Ltd

.: C

hing

-Lai

Yeh

; Rep

rese

ntat

ives

of S

huo

Qua

n C

o., L

td.:

Shou

-C

hun

Yeh;

Yu

Yuan

Inve

stm

ent C

o., L

td.:

Shen

g Li

n, C

harle

s Wan

g.

Ran

ge o

f Rem

uner

atio

n

Nam

e of

Dire

ctor

s

Tota

l of (

A+B

+C+D

) To

tal o

f (A

+B+C

+D+E

+F+G

)

The

com

pany

C

ompa

nies

in th

e co

nsol

idat

ed

finan

cial

stat

emen

ts Th

e co

mpa

ny

The

pare

nt c

ompa

ny a

nd a

ll in

vest

ed c

ompa

nies

. (I)

Less

than

NT$

1,0

00,0

00

Rep

. of W

eiyu

Inno

vatio

n In

vest

men

t Co.

, Ltd

.: Jo

hnny

Hih

R

ep. o

f Shu

o Q

uan

Co.

, Ltd

.: Sh

ou-C

hun

Yeh

Rep

. of Y

uan

Din

g In

vest

men

t Co.

, Ltd

.: D

ongl

as

Tong

Hsu

, Kao

Sha

n W

u, E

ric H

u R

ep. o

f Yue

Din

g In

dust

ry C

o., L

td.:

Chi

ng-L

ai Y

eh

Rep

. of Y

u Yu

an In

vest

men

t Co.

, Ltd

.: H

aw S

heng

Li

n, C

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vest

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vest

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aw

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vest

men

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aw

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hing

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Tota

l 11

11

11

11

- 23 -

Rem

uner

atio

n of

the

Pres

iden

t and

Vic

e Pr

esid

ents

U

nit:

NT$

thou

sand

s

Not

e: a

. S

peci

fy th

e am

ount

of r

emun

erat

ion

rece

ived

by

the

pres

iden

t and

vic

e pr

esid

ents

from

ven

ture

s oth

er th

an su

bsid

iarie

s or f

rom

the

pare

nt c

ompa

ny

in th

is fi

eld

(Ple

ase

fill i

n "N

one"

if n

one)

. b.

Whe

re th

e C

ompa

ny's

pres

iden

t and

vic

e pr

esid

ent r

ecei

ved

rele

vant

rem

uner

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n fr

om v

entu

res o

ther

than

subs

idia

ries o

r fro

m th

e pa

rent

com

pany

, the

rem

uner

atio

n re

ceiv

ed b

y th

e C

ompa

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pres

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t and

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ture

s oth

er th

an su

bsid

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rom

the

pare

ntco

mpa

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all b

e in

clud

ed in

the

"E"

colu

mn

of th

e re

mun

erat

ion

brac

ket t

able

with

the

colu

mn

nam

e ch

ange

d to

"the

par

ent c

ompa

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nd a

llin

vest

ed c

ompa

nies

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The

rem

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atio

n m

eans

pay

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pens

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clud

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ploy

ees,

dire

ctor

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and

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ense

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ager

of v

entu

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ther

than

subs

idia

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he p

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pany

.

Title

N

ame

Sala

ry(A

) Se

vera

nce

Pay

(B)

Bon

uses

and

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llow

ance

s (C

) Em

ploy

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(D)

Rat

io o

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(A+B

+C+D

) to

net i

ncom

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emun

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from

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ntur

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ther

than

su

bsid

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s or

fro

m

the

pare

nt c

ompa

ny

(Not

e)

The

com

pany

Com

pani

es in

th

e co

nsol

idat

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finan

cial

st

atem

ents

The

com

pany

Com

pani

es in

th

e co

nsol

idat

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finan

cial

st

atem

ents

The

com

pany

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pani

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th

e co

nsol

idat

ed

finan

cial

st

atem

ents

The

com

pany

Com

pani

es in

the

cons

olid

ated

finan

cial

st

atem

ents

Th

e co

mpa

ny C

ompa

nies

in

the

cons

olid

ated

fin

anci

al

stat

emen

ts

Cas

h St

ock

Cas

h St

ock

Pres

iden

t C

hing

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Ye

h

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e Pr

e.

Wen

gui

Xia

ng

Sen

Mao

W

u C

hin

Chu

eh

Kao

M

ing

Yi

Hsi

ao

Hsi

en

Shen

H

ung

- 24 -

Ran

ge o

f Rem

uner

atio

n N

ame

of P

resi

dent

and

Vic

e Pr

esid

ents

The

com

pany

th

e pa

rent

com

pany

and

all

inve

sted

co

mpa

nies

. (E)

Le

ss th

an N

T$ 1

,000

,000

0

0 N

T$1,

000,

000

~ N

T$1,

999,

999

Sen

Mao

Wu

/ Min

g Y

i Hsi

ao

0

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2,00

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NT$

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9,99

9 C

hing

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Yeh

/ Wen

gui X

iang

/ Chi

n Ch

ueh

Kao

/

Hsi

en S

hen

Hun

g

Chi

ng-L

ai Y

eh/ W

engu

i Xia

ng/ C

hin

Chue

h K

ao/

Hsi

en S

hen

Hun

g/ M

ing

Yi H

siao

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NT$

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9,99

9 Se

n M

ao W

u

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NT$

9,99

9,99

9 0

0 N

T$10

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~ N

T$14

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T$15

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~ N

T$29

,999

,999

0

0 N

T$30

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reat

er th

an o

r equ

al to

NT$

100,

000,

000

0 0

Tota

l 6

6

- 25 -

Managerial officers remuneration amounts in a TWSE/TPEx-listed company (disclose their names and remuneration method)

The remuneration disclosed in the table is different from income as defined in the Income Tax Act. This table is therefore provided for disclosure only and is not used for taxation purposes

Unit: NT$ thousands

Note: There is no Employee Compensation- in Stock issued.

Title Name Employee Compensation

- in CashRatio of Total Amount

to Net Income (%)

Executive Officers

President Ching Lai Yeh

441 -0.16%

Vice Pre. Wen Kuei Hsiang

Vice Pre. Chin Chueh Kao

Vice Pre. Hsien Shen Hung

Vice Pre. Sen Mao Wu

Vice Pre. Ming Yi Hsiao

Vice Pre. Chin Liang Chen

Director Wen Chin Yeh

Director Shih Jung Lin

Director Hui Min Cheng

Director Mei Na Liu

Director Ping Liang Chen

Director Tung Sheng Hung

Director Yi Cheng Tseng

Director Chien Hua Kao

Director Chin Li Kao

Director Huang Shan Lin

Director Hsiang Jui Liu

Director Ting Hua Hung

Director Fu Yu Chiu

Director Wen Guang Luo

Director Chiung Hua Hsu

Director Lung Chih Chen

Director Tsung Hung Li

Manager Mei Hsiu Huang

- 26 -

3.2.4 Comparison of Remuneration for Directors, Supervisors, President and Vice Presidents in the Most Recent Two Fiscal Years and Remuneration Policy for Directors, Supervisors, President and Vice Presidents

A. The ratio of total remuneration paid by the Company and by all companies includedin the consolidated financial statements for the two most recent fiscal years todirectors, supervisors, president and vice presidents of the Company, to the netincome.

The ratios of remuneration paid to directors, supervisors, president and vice presidents of the Company and the companies in the consolidated financial statements in the last two years, to net income were 16% and -8%, respectively, in 2018 and 2019. The reduction in the compensation percentages of the directors, supervisors, president and vice presidents resulted from the decline in 2019 earnings as compared to 2018.

B. The policies, standards, and portfolios for the payment of remuneration, theprocedures for determining remuneration, and the correlation with risks andbusiness performance.

In accordance with the provisions of Article 26 of the articles of association of the company, the directors who perform business may receive the salary as the employees. The amount is determined by the board of directors with reference to industry characteristics and relevant industry standards. In addition, annual performance appraisal is given based on individual performance and company performance.

Independent directors who serve as members of the Remuneration Committee have the responsibility to act as conveners, who receive attendance fees in accordance with the standards of related companies.

Article 26 of the Articles of Association of the Company stipulates that if a profit is made in the year, no more than 2.5% shall be made for directors' remuneration. The directors' remuneration in this part has been considered by the board of directors to

Year

Ratio of total remuneration paid to directors, supervisors, president and vice presidents to net income (%)

The company Companies in the consolidated financial statements

2019 -8 -112018 16 19

- 27 -

evaluate the company's operating performance, and is not evenly distributed to each director. It is probably distributed according to the following principles:

1. Allocate and represent directors according to the established distributionratio.

2. As a director who acts as a natural person, such as an independent director,their contribution to the board of directors, the Remuneration Committeeand the Audit Committee is the measure of the payment. Their status in theprofessional field is also one of the criteria for consideration.

The relevant performance appraisal and the rationality of remuneration are reviewed by the Remuneration Committee and the Board of Directors. And at any time, review rationality depending on the actual operating conditions, industry future business risks, development trends and related laws.

The relationship between manager performance evaluation and remuneration: 1. Article 26 of the company's articles of association stipulates that if a profit

is made in the year, 2.0% to 3.5% should be allocated for employeecompensation.

2. The manager’s annual performance evaluation will affect their year-endperformance appraisal, and the good performance of the year-endperformance appraisal will affect their employee compensation after theshareholders’ meeting.

- 28 -

3.3 Implementation of Corporate Governance

3.3.1 Board of Directors

A. Operations of the Board of Directors

A total of 4 (A) meetings of the Board of Directors were held in the previous period. The attendance of director was as follows:

Title Name Attendance

in Person (B) By

Proxy Attendance Rate (%) /

Remarks

Chairman Johnny Hih 4 0 100% Re-election

Director

Donglas Tong Hsu 0 0 0% Re-election

Kao Shan Wu 4 0 100% Re-election

Eric Hu 4 0 100% Re-election

Ching-Lai Yeh 4 0 100% Re-election

Shou-Chun Yeh 4 0 100% Re-election

Haw Sheng Lin 4 0 100% New

Charles Wang 4 0 100% New

Independent director

Shiou Chung Chen 4 0 100% Re-election

Jen Fa Chen 4 0 100% New

Yin Chi Chuang 4 0 100% New

Note: The company re-elected directors on 2018/06/12

Other mentionable items:

1. If any of the following circumstances occur,, the dates of the meetings, sessions, contents of motion, all

independent directors’ opinions and the company’s response should be specified:

(1) Matters referred to in Article 14-3 of the Securities and Exchange Act.: Please refer to the important

resolutions of the board of directors.

(2) Other matters involving objections or expressed reservations by independent directors that were recorded

or stated in writing that require a resolution by the board of directors: The independent directors of the company

all agree with the major proposals of the board of directors without any objections or reservations.

2. If there are directors’ avoidance of motions in conflict of interest, the directors’ names, contents of motion, causes

for avoidance and voting should be specified: None

3. TWSE/TPEx-listed companies are required to disclose the evaluation cycle and period, scope of evaluation,

evaluation method, and evaluation items of the self (or peer) evaluations conducted by the Board of Directors,

and to fill out “Implementation Status of Board Evaluations.”

4. The objectives of strengthening the functions of the board in the current and the most recent year, and the

- 29 -

B. Implementation Status of Board Evaluations

Evaluation cycle (Note 1) Once a year

Evaluation period (Note 2) January 1, 2019 and December 31, 2019

Scope of evaluation (Note 3) Board of Directors, individual directors, audit committee and remuneration committee

Evaluation method (Note 4) Internal self-evaluation, self-evaluation of board members

Evaluation items (Note 5)

1. Performance evaluation of the board of directors: participation in the company’soperations, improving the quality of board decisions, composition and structure ofthe board, selection and continuous training of directors, internal control, etc.

2. Performance evaluation of individual director members: grasp of company goals andtasks, recognition of director responsibilities, participation in company operations,internal relationship management and communication, professional and continuoustraining of directors, internal control, etc.

3. Performance evaluation of functional committees: the degree of participation in thecompany's operations, the recognition of the responsibilities of functionalcommittees, the improvement of decision-making quality of functional committees,the composition of functional committees and the selection of members, internalcontrol, etc.

Note 1: Refers to the cycle of Board evaluations. Note 2: Refers to the period covered by the Board evaluation. Note 3: The scope of performance evaluations includes the Board of Directors, individual

directors, and functional committees. Note 4: The evaluation method includes internal self-evaluation by the Board of Directors, self-

assessment by directors, peer evaluation, and entrusting external professional institutions and experts or using other appropriate methods for performance evaluation.

Note 5: According to the scope of evaluation, evaluation items must at least include the following items:

(1) Board performance evaluation: At least includes level of participation in companyoperations, the quality of Board decisions, Board composition and structure,

assessment of implementation:

In order to strengthen the functions of the board of directors and enable the board of directors to make an objective

and independent judgment on the company's financial business, the company completed the establishment of an

audit committee on June 12, 2018. The Company completed the formulation of the “Board Performance

Evaluation Measures” at the 6th meeting of the 11th Board of Directors on August 8, 2019 and it was disclosed

on the company’s website. The executive unit regularly conducts performance evaluations including the board

of directors, individual director members and functional committees every year, and reports the evaluation results

to the board of directors and exposes them on the company website.

Since the ninth session of the board of directors in 2012, the company has announced the important resolutions

and minutes of each board meeting in the corporate governance section of the company’s website to enhance the

company’s information transparency and protect shareholders’ rights. In order to strengthen corporate

governance, the company has insured directors and supervisors and important staff liability insurance from March

16, 2018, and completed the renewal on March 16, 2020.

- 30 -

appointment of directors and their continued development, and internal controls. (2) Individual director performance evaluation: At least includes grasp of company

targets and missions, understanding of the director's role and responsibilities, level ofparticipation in company operations, internal relationship management andcommunication, director's specialty and continued development, and internal controls.

(3) Functional committee performance evaluation: Participation in company operations,understanding of the responsibilities of functional committees, improvement of thedecision-making quality of functional committees, composition of functionalcommittees, and member selection and internal control.

C. The Situation of Independent Directors Attend the Board Meeting.

A total of 2019 (4) meetings of the Board of Directors were held in the previousperiod. The attendance of independent director was as follows:

The situation of independent directors attend each the board meeting in 2019

: attend in person; : delegate attendance; : absent

2019 Mar 19, 2019

4th(Eleventh Session)

May 9, 2019

5th(Eleventh Session)

Aug 8, 2019

6th(Eleventh Session)

Nov 7, 2019

7th(Eleventh Session)

Yin Chi Chuang

Shiou Chung Chen

Jen Fa Chen

Other matters: 2019 annual board meetings, all independent directors attended in person, and did not hold any objections or reservations to the relevant proposals.

- 31 -

3.3.2 Audit Committee

A. Audit Committee

A total of 4 (A) Audit Committee meetings were held in the previous period. The attendance of the independent directors was as follows:

Title Name Attendance in Person (B)

By Proxy

Attendance Rate (%) /

Remarks

Convener Yin Chi

Chuang 4 0 100%

Committee member

Shiou Chung

Chen 4 0 100%

Committee member

Jen Fa Chen 4 0 100%

Other mentionable items: 1. If any of the following circumstances occur, the dates of meetings, sessions, contents

of motion, resolutions of the Audit Committee and the Company’s response to theAudit Committee’s opinion should be specified:

(1) Matters referred to in Article 14-5 of the Securities and Exchange Act.Meeting Date

(period)

Meeting Minutes Items of Article 14-5

The results of the audit committee and the company's handling of the audit committee's opinions

Mar 19, 2019

3th(First Session)

1. IFRS 16 rental contract initiated progress issue

2. Add EnTie Bank to provide the company's

Medium-Term Loans limit

3. Taishin International Commercial Bank provides

short-term credit limit renewal case

4. Bangkok Bank Public Company Limited provides

the company's Medium-Term Loans and General

Credit limit renewal case

5. HSBC bank (Taiwan) Limited provides the

company's General Credit limit renewal case

6. KGI Bank provides the company's Medium-Term

Loans limit renewal case

7. Bangkok Bank Public Company Limited provides

100% of the company's short-term loans limit of

subsidiaries, and the company provides

endorsement and guarantee

8. For the subsidiary Everest (Bermuda) Holdings

Co., Ltd. to handle the renewal of USD quota with

KGI Bank, the company provides endorsement

and guarantee

All attending members agreed to pass, and reported to the board of directors, all present directors passed without objection

- 32 -

9. For the subsidiary Everest Development

(Shanghai) Co., Ltd. to apply for the renewal of

the credit agreement to the CTBC bank Shanghai

Branch, the company issued a comfort letter

10. The account receivables from the parent-

subsidiary transaction have been over one year.,

the company planned to turn to fund to others

11. The company's 2018 annual business report,

individual and consolidated financial report

12. The company's 2018 surplus allocation case

13. We planned to amend parted articles of the

company's "Procedure for Fund Loans to Others"

14. We planned to amend parted articles of the

company's "endorsement and ,guarantee operation

procedures"

15. We planned to amend parted articles of the

company's " procedures for the acquisition or

disposal of assets"

16. Audit business report from November 2018 to

February 2019

17. The company's 2018 annual internal control

statement

18. Far Eastern International Bank Co., Ltd. provides

short-term and medium-term comprehensive

quota and forward foreign exchange quota due

renewal

19. The Export-Import Bank of Republic of China

Tainan Branch newly added short-term export

loan limit due renewal case

20. The Shanhai Commercial & Savings Bank, Ltd.

provides the company's short-term loan limit,

export negotiation and export loan due renewal

case

21. Entie Commercial Bank, Ltd. provides a short-

term quota for its subsidiary Everest (Bermuda)

Holdings Co., Ltd. with the endorsement and

guarantee of our company.

22. HSBC Bank(Taiwan) Limited provides a general

credit line for its subsidiary Everest (Bermuda)

Holdings Co., Ltd. with the endorsement and

guaranteed by our company

23. Renewed the USD quota for the subsidiary

Everest (Thailand) Co., Ltd. to Mizuho Bank, and our

company provides endorsement and guarantee

- 33 -

4th(First Session) 2. Mega Bank provides the company's short-term

comprehensive quota due renewal and new mid-

term loans

3. TCB Bill Finance Company provides the company

with a short-term commercial paper quota due

renewal case

4. CBF Corporation provides the company with a

short-term commercial paper quota due renewal

case

5. Bank SinoPac provided the company's

comprehensive credit line renewal case

6. Yuanta Commercial Bank provides our company’s

subsidiary Everest (Bermuda) Holdings Co., Ltd.

with a short-term loan limit, and the company

provides endorsement and guarantee.

7. Bank SinoPac provides subsidiary Everest

(Bermuda) Holdings Co., Ltd. with short-term US

dollar loan limit, and the company provides

endorsement and guarantee

8. Our company provides capital loan to its subsidiary

Everest (USA) short-term limit renewal case

9. The account receivables from the parent-subsidiary

transaction have been over one year., we planned

to transfer it as loan to others.

10. Our company loaned Everest Apparel (Ethiopia)

and the debt was sold to Hongzhan International

(Taiwan)

11. Examine the company's 2018 annual business

report

12. Auditing business report from March to April in

year 2019

agreed to pass, and reported to the board of directors, all present directors passed without objection

Aug 8, 2019

5th(First Session)

1. 2019 second quarter consolidated financial report

2. Mega Bank provides the company's short-term

credit limit due renewal and new long-term loan

limit

3. Ta Ching Bills Financial Corporation provide the

company's short-term commercial paper renewal

case

4. Entie Commercial Bank, Ltd. provides the

company's mid-term quota renewal case

5. BNP Paribas provides the company's short-term

quota due renewal case

6. Mizuho Bank provides renewal of the short-term

quota of our subsidiaries, and the company

provides endorsement and guarantee

7. E.SUN Commercial Bank provides short-term quota

All attending members agreed to pass, and reported to the board of directors, all present directors passed without objection

- 34 -

May 9, 2019 1. 2019 first quarter consolidated financial report All attending members

renewal of our subsidiary, and our company

provides endorsement and guarantee

8. For the subsidiary Everest (Bermuda) Holdings Co.,

Ltd., our company apply to Wangdao Bank for the

renewal of the US dollar quota, and our company

provide an endorsement and guarantee

9. For the subsidiary Hongzhan, our company applies

for overseas investment financing to Export-Import

Bank of Republic of China, our company provides

the endorsement and guarantee

10. Our company loaned Everest Apparel

(Ethiopia/Haiti), the debt was sold to Hongzhan

Investment Company

11. The account receivables from the parent-subsidiary

transaction have been over one year, we planned to

transfer it as loan to others

12. Capital increase case for subsidiary Hongzhan

International Investment Co., Ltd.

13. Audit business report from May to July in year

2019

Nov 7, 2019

6th(First Session)

1. 2019 third quarter consolidated financial report

2. Grand Bill company provides the company's short-

term commercial paper renewal case

3. Mega Bills provides the company's short-term

commercial paper renewal case

4. E.SUN Commercial Bank provides the company's

comprehensive credit limit, medium-term loan limit

and export negotiating limit due renewal case

5. Our company’s account receivables from Everest

Apparels (Ethiopia/Haiti), the debt is sold to

Everest Apparels (Hong Kong)

6.Personnel Changes case of the company's financial

officer

7. The case of the company's capital loan and its

subsidiary Hongzhan International Investment

Company

8. August-October 2019 audit business report case

9.Planning 2020 annual audit plan case

All attending members agreed to pass, and reported to the board of directors, all present directors passed without objection

(2) Other matters which were not approved by the Audit Committee but were approvedby two-thirds or more of all directors. None2. If there are independent directors’ avoidance of motions in conflict of interest, the

directors’ names, contents of motion, causes for avoidance and voting should bespecified: None

3. Communications between the independent directors, the Company's chief internalauditor and CPAs (e.g. the material items, methods and results of audits of corporate

- 35 -

finance or operations, etc.) (1) The independent directors convene the audit committee every quarter. After the

meeting, the audit committee produces the minutes of the audit committee, andnotifies the general manager and senior executives of important discussions andresolutions. The internal audit supervisors all attended the meeting to report on theaudit business performance and major internal control internal audit matters, andcompleted the execution, reporting and tracking of the instructions of eachindependent director. Each independent director has no special recommendations.

(2) The visa accountants appointed by the Company communicate with theindependent directors on matters related to the audit (review) of financial reportsand other matters required by the relevant laws and regulations in each quarter ofthe Audit Committee. There is no special recommendation for each independentdirector.

(3) Summary of communication:Meeting With the internal audit supervisor With accountant Mar 19, 2019

3th(First Session)

Internal audit business report from November 2018 to February 2019

Checking of the 2018annual financial report.The results of theinternal control review in2018.

May 9, 2019

4th(First Session)

Internal audit business report from April to March 2019

The review of the financial report for the first quarter of 2019.

Aug 8, 2019

5th(First Session)

Internal audit business report from May to July 2019

The review of financial reports for the first half of 2019.

Nov 7, 2019

6th(First Session)

August-October 2019 internalaudit business reportAnnual audit plan for 2020

The review of the financial report for the third quarter of 2019.

- 36 -

3.3.

3 C

orpo

rate

Gov

erna

nce

Impl

emen

tatio

n St

atus

and

Dev

iatio

ns f

rom

“th

e C

orpo

rate

Gov

erna

nce

Bes

t-Pr

actic

e Pr

inci

ples

for

T

WSE

/TPE

x L

iste

d C

ompa

nies

”

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

1.D

oes t

he c

ompa

ny e

stab

lish

and

disc

lose

the

Cor

pora

te G

over

nanc

e B

est-P

ract

ice

Prin

cipl

esba

sed

on “

Cor

pora

te G

over

nanc

e B

est-P

ract

ice

Prin

cipl

es fo

r TW

SE/T

PEx

List

ed C

ompa

nies

”?

The

Com

pany

has

est

ablis

hed

the

Cor

pora

te

Gov

erna

nce

Bes

t -Pra

ctic

e Pr

inci

ples

bas

ed o

n “C

orpo

rate

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

fo

r TW

SE/T

PEx

List

ed C

ompa

nies

”. T

he

info

rmat

ion

has b

een

disc

lose

d on

the

Com

pany

’s w

ebsi

te.

Non

e

2.Sh

areh

oldi

ng st

ruct

ure

& sh

areh

olde

rs’ r

ight

s(1

)D

oes t

he c

ompa

ny e

stab

lish

an in

tern

al o

pera

ting

proc

edur

e to

dea

l with

shar

ehol

ders

’ sug

gest

ions

,do

ubts

, dis

pute

s and

litig

atio

ns, a

nd im

plem

ent

base

d on

the

proc

edur

e?

The

com

pany

has

an

e-m

ail m

ailb

ox fo

r the

aud

it co

mm

ittee

and

aud

it of

fice,

est

ablis

hes

com

mun

icat

ion

chan

nels

with

shar

ehol

ders

and

st

akeh

olde

rs, a

nd h

andl

es sh

areh

olde

rs'

sugg

estio

ns, d

oubt

s, di

sput

es, a

nd li

tigat

ion

rela

ted

mat

ters

in a

ccor

danc

e w

ith re

lev a

nt

stan

dard

s.

Non

e

- 37 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

(2)

Doe

s the

com

pany

pos

sess

the

list o

f its

maj

orsh

areh

olde

rs a

s wel

l as t

he u

ltim

ate

owne

rs o

fth

ose

shar

es?

(3)

Doe

s the

com

pany

est

ablis

h an

d ex

ecut

e th

e ris

km

anag

emen

t and

fire

wal

l sys

tem

with

in it

sco

nglo

mer

ate

stru

ctur

e?

(4)

Doe

s the

com

pany

est

ablis

h in

tern

al ru

les

agai

nst i

nsid

ers t

radi

ng w

ith u

ndis

clos

ed

Kee

p ab

reas

t of t

he a

ctua

l con

trolli

ng c

ompa

ny's

maj

or sh

areh

olde

rs a

nd th

e fin

al li

st o

f maj

or

shar

ehol

ders

, and

repo

rt tra

nsac

tion

data

in

acco

rdan

ce w

ith th

e pr

ovis

ions

of t

he li

sted

co

mpa

ny's

info

rmat

ion

repo

rting

ope

ratio

ns..

In a

dditi

on to

the

full-

time

risk

cont

rol o

f ac

coun

ts re

ceiv

able

, the

com

pany

has

als

o es

tabl

ishe

d "p

rocu

rem

ent p

roce

dure

s for

ac

quiri

ng o

r dis

posi

ng o

f ass

ets"

, "pr

oced

ures

for

disb

urse

men

t of f

unds

and

oth

ers"

and

"p

roce

dure

s for

end

orse

men

t gua

rant

ee" w

ith

rela

ted

com

pani

es. T

he ri

sk c

ontro

l mec

hani

sm

and

firew

all h

ave

been

pro

perly

est

ablis

hed.

The

com

pany

has

est

ablis

hed

"int

erna

l mat

eria

l in

form

atio

n pr

oces

sing

pro

cedu

res"

, "et

hica

l co

de o

f con

duct

" an

d "i

nteg

rity

code

of

- 38 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

info

rmat

ion?

co

nduc

t", w

hich

pro

hibi

ts in

side

rs o

f the

co

mpa

ny fr

om u

sing

unp

ublis

hed

info

rmat

ion

in

the

mar

ket t

o bu

y an

d se

ll m

arke

tabl

e se

curit

ies,

and

mak

es th

e fo

llow

ing

anno

unce

men

ts:

1.W

hen

the

new

man

ager

sign

s the

decl

arat

ion,

he

will

als

o pr

ovid

e th

e "i

nter

nal

maj

or in

form

atio

n de

clar

atio

n op

erat

ion

proc

edur

e".

2.Irr

egul

arly

ann

ounc

e to

man

ager

s the

"pro

cedu

res f

or th

e de

clar

atio

n of

maj

or in

tern

al

info

rmat

ion"

and

pro

hibi

t ins

ider

s of t

he

com

pany

from

usi

ng u

ndis

clos

ed in

form

atio

n in

th

e m

arke

t to

buy

or se

ll se

curit

ies a

nd o

ther

le

gal i

nfor

mat

ion

rela

ted

to in

tern

al tr

ansa

ctio

ns.

3.Th

e m

anag

ers a

nd e

mpl

oyee

s of t

heco

mpa

ny si

gned

the

conf

iden

tialit

y ag

reem

ent

whe

n th

ey fi

rst t

ook

offic

e, a

nd a

nnou

nced

the

"int

erna

l maj

or in

form

atio

n de

clar

atio

n op

erat

ion

- 39 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

proc

edur

es" t

o th

e em

ploy

ees.

3. C

ompo

sitio

n an

d R

espo

nsib

ilitie

s of t

he B

oard

of

Dire

ctor

s(1

)D

oes t

he B

oard

dev

elop

and

impl

emen

t adi

vers

ified

pol

icy

for t

he c

ompo

sitio

n of

its

mem

bers

?

(2)

Doe

s the

com

pany

vol

unta

rily

esta

blis

h ot

her

func

tiona

l com

mitt

ees i

n ad

ditio

n to

the

Rem

uner

atio

n C

omm

ittee

and

the A

udit

The

nom

inat

ion

and

sele

ctio

n of

mem

bers

of t

he

boar

d of

dire

ctor

s ado

pts t

he n

omin

atio

n sy

stem

of

can

dida

tes,

with

refe

renc

e to

the

opin

ions

of

inde

pend

ent d

irect

ors,

and

also

eva

luat

es th

e ac

adem

ic e

xper

ienc

e of

eac

h m

embe

r, an

d ab

ides

by

the

"Ele

ctio

n M

easu

res f

or D

irect

ors a

nd

Supe

rvis

ors"

and

"Cor

pora

te G

over

nanc

e C

ode"

to

ens

ure

dive

rsity

, ind

epen

denc

e an

d Th

e op

inio

ns o

f sta

keho

lder

s are

take

n in

to

cons

ider

atio

n. P

leas

e de

tail

the

succ

essi

on

plan

ning

(Not

e 1)

.

The

com

pany

has

1.

The

occu

patio

nal d

isas

ter i

nves

tigat

ion

and

revi

ew c

omm

ittee

: inv

estig

ate

the

caus

es o

f

Non

e

- 40 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

Com

mitt

ee?

(3)

Doe

s the

com

pany

esta

blis

h a s

tand

ard

to m

easu

re

the

perf

orm

ance

of

the

Boa

rd a

nd i

mpl

emen

t it

annu

ally

, and

are

per

form

ance

eva

luat

ion

resu

lts

subm

itted

to

th

e B

oard

of

D

irect

ors

and

refe

renc

ed w

hen

dete

rmin

ing

the

rem

uner

atio

n of

in

divi

dual

di

rect

ors

and

nom

inat

ions

fo

r re

elec

tion?

acci

dent

s and

pre

vent

repe

ated

dis

aste

rs.

2.Ze

ro D

isas

ter P

rom

otio

n O

rgan

izat

ion:

Prev

ent d

isas

ter a

ccid

ents

.3.

"Saf

ety

and

Hea

lth C

omm

ittee

": im

plem

ent

occu

patio

nal s

afet

y an

d he

alth

man

agem

ent.

The

com

pany

has

form

ulat

ed th

e "E

vere

st T

extil

e C

o., L

td. B

oard

of D

irect

ors P

erfo

rman

ce

Eval

uatio

n M

etho

d" in

acc

orda

nce

with

the

Cod

e of

Pra

ctic

e fo

r the

Gov

erna

nce

of L

iste

d C

abin

ets,

whi

ch w

as a

ppro

ved

by th

e bo

ard

of

dire

ctor

s on

Aug

ust 8

, 201

9. E

ach

year

, the

boa

rd

of d

irect

ors a

nd th

e bo

ard

of d

irect

ors m

eetin

g un

its w

ill fo

cus o

n fiv

e as

pect

s (in

clud

ing:

The

le

vel o

f par

ticip

atio

n in

com

pany

ope

ratio

ns,

impr

ovin

g th

e qu

ality

of b

oard

dec

isio

n -m

akin

g,

boar

d co

mpo

sitio

n an

d st

ruct

ure,

sele

ctio

n an

d co

ntin

uous

trai

ning

of d

irect

ors,

and

inte

rnal

- 41 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

(4)

Doe

s the

com

pany

regu

larly

eva

luat

e th

ein

depe

nden

ce o

f CPA

s?

cont

rol,

etc.

) are

use

d fo

r int

erna

l boa

rd se

lf-as

sess

men

t to

asse

ss th

e pe

rfor

man

ce o

f the

bo

ard

of d

irect

ors f

or th

e ye

ar. T

he re

sults

of t

he

com

pany

's bo

ard

perf

orm

ance

eva

luat

ion

in 2

019

are

"sur

pass

ed st

anda

rds"

, whi

ch is

suffi

cien

t to

show

the

com

pany

's re

sults

of s

treng

then

ing

the

effe

ctiv

enes

s of t

he b

oard

of d

irect

ors.

The

eval

uatio

n re

sults

are

repo

rted

in th

e re

mun

erat

ion

com

mitt

ee.

In a

ccor

danc

e w

ith A

rticl

e 21

of t

he C

ode

of

Cor

pora

te G

over

nanc

e Pr

actic

es, t

he c

ompa

ny

regu

larly

eva

luat

es th

e in

depe

nden

ce o

f ac

coun

tant

s eve

ry y

ear,

and

repo

rts to

the

boar

d of

dire

ctor

s and

est

ablis

hes a

goo

d co

mm

unic

atio

n ch

anne

l. It

can

alw

ays

com

mun

icat

e op

inio

ns a

nd m

ake

imm

edia

te

impr

ovem

ents

on

the

abno

rmal

ities

foun

d in

the

- 42 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

insp

ectio

n. T

he in

depe

nden

ce o

f the

vis

a ac

coun

tant

in 2

019

has b

een

asse

ssed

by

the

boar

d of

dire

ctor

s on

Mar

ch 1

9, 2

019.

4.

Doe

s th

e co

mpa

ny a

ppoi

nt a

sui

tabl

e nu

mbe

r of

co

mpe

tent

per

sonn

el a

nd a

supe

rvis

or re

spon

sibl

e fo

r co

rpor

ate

gove

rnan

ce m

atte

rs (

incl

udin

g bu

t no

t lim

ited

to p

rovi

ding

inf

orm

atio

n fo

r di

rect

ors

and

supe

rvis

ors

to

perf

orm

th

eir

func

tions

, as

sist

ing

dire

ctor

s an

d su

perv

isor

s w

ith c

ompl

ianc

e, h

andl

ing

wor

k re

late

d to

mee

tings

of t

he b

oard

of d

irect

ors a

nd

the

shar

ehol

ders

' mee

tings

, and

pro

duci

ng m

inut

es o

f bo

ard

mee

tings

and

shar

ehol

ders

' mee

tings

)?

The

com

pany

has

a d

edic

ated

staf

f res

pons

ible

for

corp

orat

e go

vern

ance

rel

ated

mat

ters

, in

clud

ing

prov

idin

g di

rect

ors

and

inde

pend

ent

dire

ctor

s w

ith th

e ne

cess

ary

info

rmat

ion

to c

arry

out

thei

r bu

sine

ss,

lega

lly

hand

ling

mat

ters

re

late

d to

m

eetin

gs

of

the

boar

d of

di

rect

ors

and

shar

ehol

ders

' m

eetin

gs,

hand

ling

com

pany

re

gist

ratio

n an

d ch

ange

re

gist

ratio

n,

and

prod

ucin

g bo

ard

and

shar

ehol

ders

m

eetin

g m

inut

es A

nd o

ther

affa

irs.

The

rout

ine

hand

ling

mat

ters

rela

ted

to c

orpo

rate

go

vern

ance

in 2

019

are

as fo

llow

s:

1.H

andl

e m

atte

rs r

elat

ed to

the

mee

tings

of

the

boar

d of

dire

ctor

s an

d th

e au

dit

com

mitt

ee:

4 tim

es e

ach

Non

e

- 43 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

2.H

andl

e rel

ated

mat

ters

of s

hare

hold

ers'

mee

ting

and

prod

uce

min

utes

of s

hare

hold

ers'

mee

ting:

1

times

in to

tal

3.H

andl

ing

rela

ted

mat

ters

of

the

rem

uner

atio

nco

mm

ittee

mee

ting:

2 ti

mes

in to

tal

4.A

ssis

t di

rect

ors

in

furth

er

educ

atio

n:

11pe

rson

s, 60

hou

rs in

tota

l5.

Han

dle

mat

ters

rel

ated

to

inve

stor

rel

atio

ns,

such

as

hold

ing

or a

ttend

ing

a co

rpor

ate

brie

fing

sess

ion:

1 ti

mes

in to

tal

6.R

espo

nsib

le

for

corp

orat

e go

vern

ance

eval

uatio

n an

d is

suin

g C

SR re

port.

5.D

oes t

he c

ompa

ny e

stab

lish

a co

mm

unic

atio

nch

anne

l and

bui

ld a

des

igna

ted

sect

ion

on it

sw

ebsi

te fo

r sta

keho

lder

s (in

clud

ing

but n

ot li

mite

dto

shar

ehol

ders

, em

ploy

ees,

cust

omer

s, an

dsu

pplie

rs),

as w

ell a

s han

dle

all t

he is

sues

they

car

efo

r in

term

s of c

orpo

rate

soci

al re

spon

sibi

litie

s?

The

com

pany

has

set u

p "C

onta

ct U

s" o

n th

e co

mpa

ny's

web

site

to e

stab

lish

a co

mm

unic

atio

n ch

anne

l bet

wee

n sh

areh

olde

rs a

nd st

akeh

olde

rs

and

rele

vant

uni

ts o

f the

com

pany

. Eac

h st

akeh

olde

r can

con

tact

the

rele

vant

dep

artm

ents

an

d un

its o

f the

com

pany

at a

ny ti

me

if

Non

e

- 44 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

nece

ssar

y, a

nd th

e co

mm

unic

atio

n ch

anne

l is

smoo

th.

6.D

oes t

he c

ompa

ny a

ppoi

nt a

pro

fess

iona

lsh

areh

olde

r ser

vice

age

ncy

to d

eal w

ith sh

areh

olde

raf

fairs

?

The

Com

pany

des

igna

tes O

rient

al S

ecur

ities

Co.

, Lt

d. to

dea

l with

shar

ehol

der a

ffairs

. N

one

7.In

form

atio

n D

iscl

osur

e(1

)D

oes t

he c

ompa

ny h

ave

a co

rpor

ate

web

site

todi

sclo

se b

oth

finan

cial

stan

ding

s and

the

stat

usof

cor

pora

te g

over

nanc

e?

(2)

Doe

s the

com

pany

hav

e ot

her i

nfor

mat

ion

disc

losu

re c

hann

els (

e.g.

bui

ldin

g an

Eng

lish

web

site

, app

oint

ing

desi

gnat

ed p

eopl

e to

han

dle

info

rmat

ion

colle

ctio

n an

d di

sclo

sure

, cre

atin

g a

spok

esm

an sy

stem

, web

cast

ing

inve

stor

conf

eren

ces)

?

The

Com

pan y

has

set u

p a

Chi

nese

/Eng

lish

web

site

(http

://w

ww.

ever

est.c

om.tw

) to

disc

lose

in

form

atio

n re

gard

ing

the

Com

pany

’s fi

nanc

ials

, bu

sine

ss a

nd c

orpo

rate

gov

erna

nce

stat

us.

In a

dditi

on to

hav

ing

a sp

okes

pers

on a

nd a

ctin

g sp

okes

pers

on in

acc

orda

nce

with

the

regu

latio

ns

and

impl

emen

ting

them

, the

re a

re st

ill o

ccas

iona

l le

gal p

erso

n br

iefin

gs a

nd d

esig

nate

d pe

rson

s to

be re

spon

sibl

e fo

r the

col

lect

ion

of c

ompa

ny

info

rmat

ion,

and

regu

lar o

r irr

egul

ar d

iscl

osur

e at

pu

blic

info

rmat

ion

obse

rvat

orie

s and

the

Non

e

- 45 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

(3)

Doe

s th

e co

mpa

ny a

nnou

nce

and

repo

rt an

nual

fin

anci

al s

tate

men

ts w

ithin

two

mon

ths

afte

r th

e en

d of

eac

h fis

cal y

ear,

and

anno

unce

and

repo

rt Q

1, Q

2, a

nd Q

3 fin

anci

al s

tate

men

ts, a

s w

ell a

s m

onth

ly o

pera

tion

resu

lts, b

efor

e th

e pr

escr

ibed

tim

e lim

it?

com

pany

’s w

ebsi

te re

leva

nt in

form

atio

n.

The

com

pany

han

dles

it in

acc

orda

nce

with

the

prov

isio

ns o

f Arti

cle

36 o

f the

"Sec

uriti

es

Trad

ing

Law

". Th

e co

mpa

ny's

finan

cial

repo

rts

and

mon

thly

ope

ratin

g co

nditi

ons a

re re

porte

d to

th

e pu

blic

info

rmat

ion

obse

rvat

ory

http

s://m

ops.t

wse

.com

.tw/m

ops/

web

/inde

x

8.Is

ther

e an

y ot

her i

mpo

rtant

info

rmat

ion

to fa

cilit

ate

a be

tter u

nder

stan

ding

of t

he c

ompa

ny’s

cor

pora

te g

over

nanc

e pr

actic

es (e

.g.,

incl

udin

g bu

tno

t lim

ited

to e

mpl

oyee

righ

ts, e

mpl

oyee

wel

lnes

s, in

vest

or re

latio

ns, s

uppl

ier r

elat

ions

, rig

hts o

f sta

keho

lder

s, di

rect

ors’

and

supe

rvis

ors’

train

ing

reco

rds,

the

impl

emen

tatio

n of

risk

man

agem

ent p

olic

ies a

nd ri

sk e

valu

atio

n m

easu

res,

the

impl

emen

tatio

n of

cus

tom

er re

latio

nspo

licie

s, an

d pu

rcha

sing

insu

ranc

e fo

r dire

ctor

s and

supe

rvis

ors)

?

For o

ther

impo

rtant

info

rmat

ion

that

hel

ps to

und

erst

and

the

oper

atio

n of

cor

pora

te g

over

nanc

e, p

leas

e re

fer t

o O

ther

Impo

rtant

I nfo

rmat

ion

that

ca

n en

hanc

e th

e un

ders

tand

ing

of th

e op

erat

ion

of c

orpo

rate

gov

erna

nce.

- 46 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te

Gov

erna

nce

Bes

t-Pra

ctic

e Pr

inci

ples

for T

WSE

/TPE

x Li

sted

Com

pani

es”

and

Rea

sons

Ye

s N

o A

bstra

ct Il

lust

ratio

n

9.Pl

ease

exp

lain

the

impr

ovem

ents

whi

ch h

ave

been

mad

e in

acc

orda

nce

with

the

resu

lts o

f the

Cor

pora

te G

over

nanc

e Ev

alua

tion

Syst

em re

leas

edby

the

Cor

pora

te G

over

nanc

e C

ente

r, Ta

iwan

Sto

ck E

xcha

nge,

and

pro

vide

the

prio

rity

enha

ncem

ent m

easu

res.

The

com

pany

's 20

19 "

Cor

pora

te G

over

nanc

e Ev

alua

tion"

resu

lts a

re li

sted

com

pani

es w

ith ra

nkin

gs ra

ngin

g fr

om 5

1% to

65%

, and

scor

ed 6

2.47

po

ints

. Thi

s yea

r, w

e w

ill fo

cus o

n un

scor

ed it

ems:

"Doe

s the

com

pany

's w

ebsi

te o

r ann

ual r

epor

t dis

clos

e th

e in

tegr

ity m

anag

emen

t pol

icy

form

ulat

ed, s

peci

fy sp

ecifi

c pr

actic

es a

nd p

lans

to p

reve

nt d

isho

nest

y?" P

riorit

ize

impr

ovem

ent.

Impr

ovem

ent m

easu

res:

The

com

pany

firs

t rev

ised

the

com

pany

's co

de o

f int

egrit

y m

anag

emen

t on

Mar

ch 1

9, 2

020,

with

refe

renc

e to

the

stoc

k ex

chan

ge a

nnou

ncem

ent,

and

inst

ruct

ed th

e he

ad o

f the

man

agem

ent d

epar

tmen

t and

hum

an re

sour

ces t

o im

plem

ent s

peci

fic re

gula

tions

rela

ted

to th

e in

tegr

ity m

anag

emen

t pol

icy

in th

e th

ird q

uarte

r of t

his y

ear P

ract

ices

and

pla

ns to

pre

vent

dis

hone

sty,

and

spec

ific

actio

ns su

ch a

s the

m

anag

emen

t of i

nteg

rity

man

agem

ent e

duca

tion

and

train

ing

(incl

udin

g th

e su

bjec

t of t

he c

ours

e, h

ours

and

num

ber o

f par

ticip

ants

), et

c., a

nd

regu

larly

repo

rt to

the

boar

d of

dire

ctor

s. C

ompi

led

the

Engl

ish

vers

ion

of th

e an

nual

repo

rt an

d st

reng

then

ed th

e nu

mbe

r of h

ours

of d

irect

or

train

ing.

Stre

ngth

en d

iscl

osur

es o

n of

ficia

l web

site

s, an

nual

repo

rts a

nd p

ublic

info

rmat

ion

obse

rvat

orie

s. N

ote

2: S

ucce

ssio

n pl

anni

ng a

nd m

anag

emen

t obj

ectiv

es o

f boa

rd m

embe

rs a

nd im

porta

nt m

anag

emen

t In

the

succ

essi

on p

lann

ing

of th

e co

mpa

ny, i

n ad

ditio

n to

the

need

to h

ave

exce

llent

wor

king

abi

lity,

the

succ

esso

r's b

usin

ess

philo

soph

y m

ust b

e co

nsis

tent

with

the

com

pany

. The

com

pany

's im

porta

nt b

usin

ess p

hilo

soph

y is

to w

in, l

earn

, and

cha

nge,

and

to c

onst

antly

tran

sfor

m a

nd

upgr

ade.

; So

cial

indi

cato

rs h

ave

also

bee

n ad

ded

to th

e pe

rfor

man

ce a

ppra

isal

pro

ject

of d

irect

ors’

self-

asse

ssm

ent t

o st

reng

then

the

boar

d m

embe

rs’ d

ispl

ay o

f int

egrit

y an

d et

hica

l val

ue th

roug

h th

eir i

nstru

ctio

ns, a

ctio

ns a

nd b

ehav

iors

to e

xpre

ss th

e im

porta

nce

of su

ppor

ting

the

oper

atio

n of

the

inte

rnal

con

trol s

yste

m (f

or e

xam

ple:

the

boar

d ad

opts

spec

ific

Mea

sure

s to

set t

he to

ne fo

r eth

ical

, soc

ial,

envi

ronm

enta

l

- 47 -

prot

ectio

n or

oth

er fo

rms o

f res

pons

ible

beh

avio

r, in

clud

ing

impo

rtant

pro

ject

s suc

h as

gre

enho

use

gas e

mis

sion

repo

rts, s

usta

inab

le p

rodu

ctio

n pr

oces

ses o

r com

mun

ity a

ssis

tanc

e af

ter n

atur

al d

isas

ters

). In

the

2018

shar

ehol

ders

' mee

ting,

eig

ht d

irect

ors a

nd th

ree

inde

pend

ent d

irect

ors

wer

e el

ecte

d. E

ach

dire

ctor

mem

ber u

nder

stan

ds a

nd a

gree

s with

the

com

pany

's bu

sine

ss p

hilo

soph

y an

d gr

asps

the

com

pany

's in

dust

rial

situ

atio

n. A

t the

sam

e tim

e, w

e ha

ve c

onsi

dera

ble

expe

rienc

e in

inte

rnat

iona

l pol

itica

l and

eco

nom

ic si

tuat

ions

, com

plia

nce

with

law

s and

re

gula

tions

, int

erna

tiona

l man

agem

ent a

nd m

anuf

actu

ring

man

agem

ent,

and

in o

rder

to re

spon

d to

the

ever

-cha

ngin

g in

tern

atio

nal c

ompe

titio

n m

anag

emen

t env

ironm

ent a

nd th

e co

ntin

uous

upd

atin

g of

law

s and

regu

latio

ns (s

uch

as c

orpo

rate

gov

erna

nce)

, our

com

pany

als

o Pl

an e

xclu

sive

co

urse

s for

boa

rd m

embe

rs to

ens

ure

that

seni

or e

xecu

tives

hav

e th

e m

anag

emen

t abi

lity

to k

eep

up w

ith th

e tim

es.

For i

mpo

rtant

man

agem

ent l

evel

s, th

e com

pany

has

a se

ries o

f com

plet

e exe

cutiv

e pro

mot

ion

and

train

ing

prog

ram

s, co

oper

ates

with

the c

ompa

ny's

oper

atio

ns a

nd th

e pa

ce o

f glo

baliz

atio

n, p

rom

otes

per

sona

l dev

elop

men

t pla

ns, a

nd li

sts

"inn

ovat

ion"

as

a ne

cess

ary

com

pete

nce

for a

ll cl

asse

s, co

mbi

ned

with

per

sona

l dev

elop

men

t Sum

mar

y of

IDP

need

s, ta

ilor-

mad

e pe

rson

al le

arni

ng m

aps;

ann

ual c

urric

ulum

pla

nnin

g is

bas

ed o

n th

e co

llect

ed n

eeds

, cur

ricul

um p

lann

ing

and

desi

gn, a

nnua

l per

form

ance

app

rais

al, u

nder

stan

ding

of t

he c

urre

nt s

tatu

s of

per

sona

l abi

litie

s, gi

ving

ap

prop

riate

gui

danc

e an

d as

sist

ance

, Im

prov

e pe

rfor

man

ce.

For s

enio

r exe

cutiv

es to

take

ove

r the

ech

elon

, con

duct

"su

perv

isor

trai

ning

cou

rses

", th

roug

h ex

perie

nce

inhe

ritan

ce a

nd p

ract

ical

cas

e st

udie

s, et

c., t

o en

able

em

ploy

ees

with

pot

entia

l and

exc

elle

nt p

erfo

rman

ce to

gro

w q

uick

ly a

nd th

rive,

and

then

bec

ome

exce

llent

lead

ers

in v

ario

us

busi

ness

gro

ups t

o cr

eate

bas

e le

ader

s Gre

en, t

o en

sure

sust

aina

ble

oper

atio

n.

- 48 -

3.3.4 Composition, Responsibilities and Operations of the Remuneration Committee

A. Professional Qualifications and Independence Analysis of RemunerationCommittee Members

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 the company or any of its affiliates. Not apply to

independent directors appointed in accordance with the Act or the laws andregulations of the local country by, and concurrently serving as such at, a publiccompany and its parent or subsidiary or a subsidiary of the same parent.

3. Not a natural-person shareholder who holds shares, together with those held bythe person's spouse, minor children, or held by the person under others' names, inan aggregate of one percent or more of the total number of issued shares of thecompany or ranking in the top 10 in holdings.

4. Not a spouse, relative within the second degree of kinship, or lineal relative withinthe third degree of kinship, of a managerial officer under subparagraph 1 or anyof the persons in the preceding two subparagraphs.

5. Not a director, supervisor, or employee of a corporate shareholder that directlyholds five percent or more of the total number of issued shares of the company,or that ranks among the top five in shareholdings, or that designates itsrepresentative to serve as a director or supervisor of the company under Article27, paragraph 1 or 2 of the Company Act. Not apply to independent directors

Title

Criteria

Name

Meets One of the Following Professional Qualification Requirements, Together with at Least Five Years’ Work

ExperienceIndependence Criteria (Note)

Number of Other Public Companies in

Which the Individual is Concurrently Serving as an Remuneration

Committee Member

Remarks

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 public or private junior college, college or university

A judge, public prosecutor, attorney, Certified Public Accountant, or other professional or technical specialist who has passed a national examination and been awarded a certificate in a profession necessary for the business of the Company

Has 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

IndependentDirector

Yin Chi Chuang 0

IndependentDirector

Jen Fa Chen 0

Other Jun youLin 0

- 49 -

appointed in accordance with the Act or the laws and regulations of the local country by, and concurrently serving as such at, a public company and its parent or subsidiary or a subsidiary of the same parent.

6. If a majority of the company's director seats or voting shares and those of anyother company are controlled by the same person: not a director, supervisor, oremployee of that other company. Not apply to independent directors appointed inaccordance with the Act or the laws and regulations of the local country by, andconcurrently serving as such at, a public company and its parent or subsidiary ora subsidiary of the same parent.

7. If the chairperson, general manager, or person holding an equivalent position ofthe company and a person in any of those positions at another company orinstitution are the same person or are spouses: not a director (or governor),supervisor, or employee of that other company or institution. Not apply toindependent directors appointed in accordance with the Act or the laws andregulations of the local country by, and concurrently serving as such at, a publiccompany and its parent or subsidiary or a subsidiary of the same parent.

8. Not a director, supervisor, officer, or shareholder holding five percent or more ofthe shares, of a specified company or institution that has a financial or businessrelationship with the company. Not apply to independent directors appointed inaccordance with the Act or the laws and regulations of the local country by, andconcurrently serving as such at, a public company and its parent or subsidiary ora subsidiary of the same parent, if the specified company or institution holds 20percent or more and no more than 50 percent of the total number of issued sharesof the public company.

9. Not a professional individual who, or an owner, partner, director, supervisor, orofficer of a sole proprietorship, partnership, company, or institution that, providesauditing services to the company or any affiliate of the company, or that providescommercial, legal, financial, accounting or related services to the company or anyaffiliate of the company for which the provider in the past 2 years has receivedcumulative compensation exceeding NT$500,000, or a spouse thereof; provided,this restriction does not apply to a member of the remuneration committee, publictender offer review committee, or special committee for merger/consolidation andacquisition, who exercises powers pursuant to the Act or to the Business Mergersand Acquisitions Act or related laws or regulations.

10. Not been a person of any conditions defined in Article 30 of the Company Law.

- 50 -

There are 3 members in the Remuneration Committee. A total of 2 (A) Remuneration Committee meetings were held in the previous period. The attendance record of the Remuneration Committee members was as follows:

Title Name Attendance in Person(B) By Proxy Attendance Rate

(%) /Remarks

Convener Yin Chi Chuang

2 0 100% Independent Director

Committee Member

Yong faShi

1 0 100% 2019.5.9Termination

Committee Member

Jun you Lin

2 0 100%

Committee Member

Jen Fa Chen

1 0 100% Independent Director

Other mentionable items: 1. If the board of directors declines to adopt or modifies a recommendation of the

remuneration committee, it should specify the date of the meeting, session, contentof the motion, resolution by the board of directors, and the Company’s response tothe remuneration committee’s opinion (eg., the remuneration passed by the Board ofDirectors exceeds the recommendation of the remuneration committee, thecircumstances and cause for the difference shall be specified): None.

2. Resolutions of the remuneration committee objected to by members or expressedreservations and recorded or declared in writing, the date of the meeting, session,content of the motion, all members’ opinions and the response to members’ opinionshould be specified: None.

B. Attendance of Members at Remuneration Committee Meetings

- 51 -

3.3.

5 Fu

lfillm

ent

of C

SR a

nd D

evia

tions

fro

m t

he "

Cor

pora

te S

ocia

l Res

pons

ibili

ty B

est

Prac

tice

Prin

cipl

es f

or T

WSE

/GT

SM L

iste

d C

ompa

nies

"

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

1.D

oes t

he c

ompa

ny a

sses

sES

G ri

sks a

ssoc

iate

d w

ithits

ope

ratio

ns b

ased

on

the

prin

cipl

e of

mat

eria

lity,

and

esta

blis

h re

late

d ris

km

anag

emen

t pol

icie

s or

stra

tegi

es?

3

Ever

est

is t

he o

nly

prof

essi

onal

clo

th f

acto

ry i

n Ta

iwan

tha

t ha

s ve

rtica

lly

inte

grat

ed lo

ng an

d sh

ort f

iber

s. Th

e com

pany

's m

issi

on st

atem

ent i

s "to

cont

ribut

e to

soc

iety

and

tran

sfor

m th

e w

orld

with

inno

vatio

n an

d su

stai

nabi

lity"

. Con

tinue

to

use

Cra

dle

to C

radl

e as

the

core

con

cept

, int

rodu

ce e

nviro

nmen

tal d

esig

n, w

ith

ecol

ogic

al d

esig

n, b

lue

proc

ess,

gree

n pr

oduc

ts, a

nd st

rive

to d

evel

op te

xtile

s tha

t ar

e ha

rmle

ss t

o hu

man

s an

d ec

olog

y to

red

uce

envi

ronm

enta

l im

pact

. Res

pect

hu

man

rig

hts,

impl

emen

t en

viro

nmen

tal

safe

ty a

nd s

anita

tion

man

agem

ent,

prov

ide

empl

oyee

s w

ith

ener

gy-s

avin

g,

envi

ronm

enta

lly-f

riend

ly

and

safe

w

orki

ng e

nviro

nmen

ts,

culti

vate

nat

ural

and

hea

lthy

livin

g ha

bits

, an

d th

en

prom

ote

them

to

com

mun

ities

, m

anuf

actu

rers

, an

d cu

stom

ers,

com

mitt

ed t

o cr

eatin

g a

sust

aina

ble

and

heal

thy

soci

al e

nviro

nmen

t for

hum

ans.

Non

e

2.D

oes t

he c

ompa

ny e

stab

lish

excl

usiv

ely

(or

conc

urre

ntly

) ded

icat

edfir

st-li

ne m

anag

ers

auth

oriz

ed b

y th

e bo

ard

tobe

in c

harg

e of

pro

posi

ngth

e co

rpor

ate

soci

alre

spon

sibi

lity

polic

ies a

ndre

porti

ng to

the

boar

d?

Set u

p th

e "E

SM G

loba

l Pro

mot

ion

Org

aniz

atio

n", u

se th

e ge

nera

l man

ager

's of

fice

as th

e se

cret

ary

unit,

com

bine

the

cutti

ng-e

dge

tech

nolo

gy re

sear

ch

inst

itute

with

the

R&

D d

epar

tmen

t, th

e fie

ld u

nit,

and

fully

coo

pera

te w

ith th

e en

viro

nmen

tal s

ecur

ity, m

arke

ting,

pub

lic u

tiliti

es, m

anag

emen

t dep

artm

ents

and

ex

tern

al c

ouns

elin

g co

nsul

tant

s to

cont

inue

to d

eepe

n th

e ov

eral

l The

fo

rmul

atio

n an

d pr

omot

ion

of c

ontin

ued

busi

ness

stra

tegi

es. R

epor

t the

resu

lts o

f C

SR im

plem

enta

tion

to se

nior

man

agem

ent r

egul

arly

eve

ry y

ear,

so th

at th

e pr

omot

ion

of C

SR g

radu

ally

bec

omes

the

core

val

ue o

f the

com

pany

.

Non

e

- 52 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

3.En

viro

nmen

tal i

ssue

s(1

)Doe

s the

com

pany

esta

blis

h pr

oper

envi

ronm

enta

lm

anag

emen

t sys

tem

sba

sed

on th

ech

arac

teris

tics o

f the

irin

dust

ries?

Bui

ld a

n IS

O 1

4001

env

ironm

enta

l man

agem

ent s

yste

m, s

et u

p en

viro

nmen

tal

safe

ty o

ffice

s and

env

ironm

enta

l man

agem

ent s

peci

alis

ts, f

orm

ulat

e en

viro

nmen

tal s

afet

y an

d he

alth

pol

icie

s, pr

omot

e an

d im

plem

ent e

nviro

nmen

tal

man

agem

ent r

elat

ed m

atte

rs, a

nd in

vite

third

-par

ty v

erifi

catio

n ag

enci

es fo

r ve

rific

atio

n ev

ery

year

.

Non

e

(2)D

oes t

he c

ompa

nyen

deav

or to

util

ize

all

reso

urce

s mor

e ef

ficie

ntly

and

use

rene

wab

lem

ater

ials

whi

ch h

ave

low

impa

ct o

n th

een

viro

nmen

t?

Prom

ote

gree

n lif

e 7R

(Ret

hink

, Red

esig

n, R

educ

e, R

euse

, Rep

air,

Rec

ycle

, R

ecov

ery)

, circ

ular

eco

nom

y, cl

eane

r pro

duct

ion,

ene

rgy

savi

ng a

nd w

aste

re

duct

ion

mea

sure

s to

impr

ove

reso

urce

pro

duct

ivity

(Les

s is M

ore)

; and

use

en

viro

nmen

tally

frie

ndly

Raw

mat

eria

ls a

nd d

yein

g ai

ds a

re d

edic

ated

to th

e de

velo

pmen

t of t

extil

es th

at a

re h

arm

less

to h

uman

s and

eco

logy

to re

duce

en

viro

nmen

tal i

mpa

ct. A

lso

obta

ined

the

"Cle

an P

rodu

ctio

n Ev

alua

tion

Syst

em

Cer

tific

ate"

and

"Gre

en F

acto

ry C

ertif

icat

ion

Mar

k".

Non

e

(3)

Doe

s the

com

pany

eval

uate

the

pote

ntia

lris

ks a

nd o

ppor

tuni

ties i

ncl

imat

e ch

ange

with

rega

rd to

the

pres

ent a

ndfu

ture

of i

ts b

usin

ess,

and

take

app

ropr

iate

act

ion

toco

unte

r clim

ate

chan

geis

sues

?

1.C

ondu

ct a

nnua

l gre

enho

use

gas

inve

ntor

y, c

ontin

uous

ly tr

ack

gree

nhou

se g

as

emis

sion

s and

sour

ces,

and

prio

ritiz

e th

e as

sess

men

t of g

reen

hous

e ga

s re

duct

ion

base

d on

the

inve

ntor

y re

sults

. Cre

ate

a gr

een

ecol

ogic

al in

dust

rial p

ark,

pla

nt

nativ

e pl

ants

in th

e pl

ant a

rea,

redu

ce c

arbo

n ab

sorp

tion

and

redu

ce th

e he

at is

land

ef

fect

in th

e pl

ant a

rea.

2.Ev

eres

t an

d its

pro

duct

ion

base

s ha

ve f

orm

ulat

ed a

ppro

pria

te m

anag

emen

t m

echa

nism

s in

resp

onse

to th

e re

quire

men

ts o

f loc

al g

over

nmen

ts fo

r gre

enho

use

gas m

anag

emen

t (su

ch a

s the

car

bon

tradi

ng m

echa

nism

in S

hang

hai).

The

ene

rgy

team

mem

bers

of e

ach

plan

t will

dis

cuss

, for

mul

ate,

and

impl

emen

t man

agem

ent

Non

e

- 53 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

polic

ies

and

revi

ew p

erfo

rman

ce w

ith r

elev

ant

units

with

in t

he p

lant

, suc

h as

: ho

ldin

g an

ene

rgy

mon

thly

mee

ting

to re

view

ene

rgy

cons

umpt

ion

stat

us, e

nerg

y co

nser

vatio

n go

als,

and

impl

emen

tatio

n of

ene

rgy

cons

erva

tion

and

carb

on

redu

ctio

n pr

ojec

ts.

(4)D

oes t

he c

ompa

ny ta

kein

vent

ory

of it

sgr

eenh

ouse

gas

emis

sion

s, w

ater

cons

umpt

ion,

and

tota

lw

eigh

t of w

aste

in th

ela

st tw

o ye

ars,

and

impl

emen

t pol

icie

s on

ener

gy e

ffici

ency

and

carb

on d

ioxi

de re

duct

ion,

gr

eenh

ouse

gas

redu

ctio

n, w

ater

redu

ctio

n, o

r was

tem

anag

emen

t?

The

com

pany

's pr

oduc

tion

plan

t and

pro

duct

ion

base

s of s

ubsi

diar

ies a

t hom

e an

d ab

road

in 2

018

and

2019

hav

e a

tota

l gre

enho

use

gas e

mis

sion

s of 1

,894

kt-

CO

2e a

nd 1

,809

kt-C

O2e

, res

pect

ivel

y.

The

prod

uctio

n ba

ses

for t

he 2

018

emis

sion

dat

a ve

rific

atio

n of

ISO

1406

4-1

and

othe

r inv

ento

ry s

tand

ards

incl

ude:

Eve

rest

(Tai

wan

), Ev

eres

t (Sh

angh

ai),

Ever

est

(Tha

iland

). Th

e pr

oduc

tion

base

s th

at c

ompl

eted

the

verif

icat

ion

of IS

O14

064-

1 an

d ot

her

inve

ntor

y st

anda

rds

in 1

08 e

mis

sion

dat

a in

clud

e: E

vere

st (

Taiw

an),

Ever

est (

Shan

ghai

), Ev

eres

t (Th

aila

nd).

To su

ppor

t the

dev

elop

men

t of r

enew

able

en

ergy

in T

aiw

an, t

he c

ompa

ny, S

hang

hai a

nd T

haila

nd h

ave

inst

alle

d so

lar p

anel

s at

thre

e pr

oduc

tion

site

s, w

hich

will

be

offic

ially

laun

ched

in 2

019.

In

orde

r to

gr

adua

lly r

educ

e en

ergy

use

and

thu

s sl

ow d

own

glob

al c

limat

e ch

ange

, th

e co

mpa

ny c

ontin

ued

to p

rom

ote

vario

us e

nerg

y-sa

ving

and

car

bon-

redu

ctio

n m

easu

res.

In 1

998,

a to

tal o

f 15

ener

gy-s

avin

g an

d ca

rbon

-red

uctio

n pr

ojec

ts w

ere

impl

emen

ted

to a

void

89,

195t

-CO

2e e

mis

sion

s.

Non

e

4. S

ocia

l iss

ues

(1)D

oes t

he c

ompa

nyfo

rmul

ate

appr

opria

tem

anag

emen

t pol

icie

s and

proc

edur

es a

ccor

ding

tore

leva

nt re

gula

tions

and

the

Inte

rnat

iona

l Bill

of

Hum

an R

ight

s?

The

com

pany

com

plie

s with

var

ious

labo

r law

s and

inte

rnat

iona

l hum

an ri

ghts

co

nven

tions

, and

form

ulat

es a

nd a

djus

ts th

e in

tern

al m

anag

emen

t sys

tem

ac

cord

ingl

y, a

nd g

uara

ntee

s the

em

ploy

men

t pol

icy

with

out g

ende

r, ra

ce, a

ge,

mar

riage

and

fam

ily st

atus

and

oth

er d

iffer

entia

l tre

atm

ent,

and

impl

emen

ts

rem

uner

atio

n an

d em

ploy

men

t con

ditio

ns ,

Equa

lizat

ion

of tr

aini

ng a

nd

prom

otio

n op

portu

nitie

s, an

d co

ntin

ue to

trac

k th

e de

velo

pmen

t of l

aws a

nd

regu

latio

ns to

pro

tect

the

legi

timat

e rig

hts a

nd in

tere

sts o

f em

ploy

ees.

Non

e

- 54 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

(2)D

oes t

he c

ompa

ny h

ave

reas

onab

le e

mpl

oyee

bene

fit m

easu

res

(incl

udin

g sa

larie

s, le

ave,

and

othe

r ben

efits

), an

ddo

bus

ines

s per

form

ance

or re

sults

refle

ct o

nem

ploy

ee sa

larie

s?

The

com

pany

has

form

ulat

ed a

nd im

plem

ente

d re

ason

able

em

ploy

ee w

elfa

re

mea

sure

s, an

d ap

prop

riate

ly re

flect

ed th

e op

erat

ing

perf

orm

ance

or r

esul

ts in

em

ploy

ee c

ompe

nsat

ion

1.Va

catio

n sy

stem

: It i

s und

erst

ood

that

a p

erfe

ct v

acat

ion

syst

em is

impl

emen

ted

in a

ccor

danc

e w

ith th

e pr

ovis

ions

of t

he L

abor

Law

, and

it is

incl

uded

in th

e "W

orki

ng R

ules

" and

ann

ounc

ed b

y co

lleag

ues.

2.Va

rious

wel

fare

mea

sure

s: A

ccor

ding

to th

e pr

ovis

ions

of t

he la

w a

nd ta

king

into

acc

ount

the

need

s of e

mpl

oyee

s, to

des

ign

the

bene

fits t

hat e

mpl

oyee

s can

enjo

y, in

clud

ing

empl

oyee

dor

mito

ry, p

arki

ng lo

t, fe

edin

g (c

olle

ctio

n) m

ilkro

om, i

nexp

ensi

ve fo

od a

nd b

ever

age,

han

dlin

g em

ploy

ee h

ealth

che

ck, e

tc. T

oen

able

em

ploy

ees t

o en

joy

a co

mpl

ete

wel

fare

syst

em (e

g m

arria

ge a

llow

ance

,ed

ucat

ion

allo

wan

ce fo

r chi

ldre

n, p

ensi

ons f

or re

tiree

s, fu

nera

l allo

wan

ce,

mat

erni

ty a

llow

ance

, mat

erni

ty le

ave,

chi

ldca

re le

ave,

pat

erni

ty le

ave,

etc

.).3.

Empl

oyee

com

pens

atio

n po

licy:

bas

ed o

n in

divi

dual

abi

lity,

con

tribu

tion

to th

e co

mpa

ny, p

erfo

rman

ce, m

arke

t val

ue o

f pos

ition

s hel

d by

the

com

pany

, and

afte

rco

nsid

erin

g th

e co

mpa

ny's

futu

re o

pera

ting

risks

, it i

s pos

itive

ly re

late

d to

oper

atin

g pe

rfor

man

ce. T

he o

vera

ll re

mun

erat

ion

pack

age

mai

nly

incl

udes

thre

epa

rts: b

asic

fixe

d sa

lary

, bon

us a

nd b

enef

its; w

hile

the

paym

ent s

tand

ard,

bas

icfix

ed sa

lary

is b

ased

on

the

mar

ket s

ituat

ion

of th

e po

sitio

n he

ld b

y th

eem

ploy

ee, a

nd th

e bo

nus i

s to

link

the

achi

evem

ent o

f the

em

ploy

ee a

ndde

partm

ent g

oals

and

the

com

pany

’s B

usin

ess p

erfo

rman

ce.

4.R

etire

men

t sys

tem

:Th

e co

mpa

ny fu

lly c

ompl

ies w

ith th

e pr

ovis

ions

of t

he L

abor

Sta

ndar

ds L

aw a

nd

the

Labo

r Pen

sion

Reg

ulat

ions

, and

form

ulat

es re

leva

nt s

yste

m m

easu

res

for t

he

retir

emen

t of e

mpl

oyee

s, in

clud

ing

thos

e w

ho h

ave

wor

ked

for m

ore

than

15

year

s an

d ha

ve re

ache

d th

e ag

e of

55,

thos

e w

ho h

ave

wor

ked

for m

ore

than

25

year

s an

d th

ose

who

hav

e w

orke

d fo

r mor

e th

an 1

0 ye

ars T

hose

who

are

ove

r 60

year

s

Non

e

- 55 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

old

can

ask

for r

etire

men

t, an

d pa

y a

labo

r pe

nsio

n of

not

less

than

6%

of t

heir

mon

thly

sal

ary

acco

rdin

g to

the

empl

oyee

's in

sura

nce

leve

l, an

d se

t up

a La

bor

Ret

irem

ent R

eser

ve S

uper

visi

on C

omm

ittee

to s

uper

vise

the

impl

emen

tatio

n an

d pa

ymen

t of p

ensi

ons.

Rel

ated

Bus

ines

s. (3

)Doe

s the

com

pany

prov

ide

a he

alth

y an

dsa

fe w

orki

ngen

viro

nmen

t and

org

aniz

e tra

inin

g on

hea

lth a

ndsa

fety

for i

ts e

mpl

oyee

son

a re

gula

r bas

is?

In o

rder

to c

reat

e a

win

-win

safe

wor

king

env

ironm

ent,

the

com

pany

has

in

trodu

ced

the

ISO

450

01 o

ccup

atio

nal s

afet

y an

d he

alth

man

agem

ent s

yste

m,

and

set u

p a

safe

ty a

nd h

ealth

com

mitt

ee a

nd a

dopt

ed th

e fo

llow

ing

mea

sure

s:

W

orki

ng e

nviro

nmen

t mai

nten

ance

: Fro

m th

e pr

ocur

emen

t of m

achi

nery

an

d m

ater

ials

, stri

ct sa

fety

and

hea

lth st

anda

rds a

re re

quire

d, a

nd st

rict

supe

rvis

ion

is a

lso

appl

ied

whe

n in

stal

ling

mac

hine

ry; v

ario

us o

pera

ting

envi

ronm

ent m

easu

rem

ents

are

regu

larly

car

ried

out a

ccor

ding

to la

w, a

nd if

it

does

not

mee

t the

stan

dard

, it i

s im

med

iate

ly e

limin

ated

or i

mpr

oved

, And

set u

p ap

prop

riate

pro

tect

ive

equi

pmen

t dep

endi

ng o

n th

e ris

k fa

ctor

s in

the

wor

kpla

ce.

E

mpl

oyee

hea

lth m

aint

enan

ce: I

n ad

ditio

n to

coo

pera

ting

with

the

gove

rnm

ent t

o co

nduc

t occ

upat

iona

l dis

aste

r hea

lth in

spec

tions

, reg

ular

hea

lth

insp

ectio

ns a

re a

rran

ged

for e

mpl

oyee

s, de

pend

ing

on th

e re

sults

, the

y co

oper

ate

with

hos

pita

ls w

ithin

the

grou

p to

con

duct

hea

lth m

anag

emen

t; ea

ch fa

ctor

y is

al

so e

quip

ped

with

med

icin

es, h

ygie

nic

mat

eria

ls, s

impl

e m

edic

al e

quip

men

t, et

c. S

et u

p re

gula

r ser

vice

s for

con

tract

ed p

hysi

cian

s and

nur

sing

staf

f. In

corp

orat

e re

leva

nt re

quire

men

ts in

to d

aily

ope

ratio

ns a

nd im

prov

e oc

cupa

tiona

l saf

ety

and

heal

th p

erfo

rman

ce th

roug

h da

ily e

mpl

oyee

edu

catio

n

Non

e

(4)D

oes t

he c

ompa

nypr

ovid

e its

em

ploy

ees

with

car

eer d

evel

opm

ent

and

train

ing

sess

ions

?

The

com

pany

atta

ches

gre

at im

porta

nce

to th

e ed

ucat

ion

and

train

ing

of

empl

oyee

s and

car

eer d

evel

opm

ent.

In a

dditi

on to

pro

vidi

ng e

mpl

oyee

s with

m

anag

emen

t ski

lls su

ch a

s ent

erpr

ise

man

agem

ent a

nd fa

ctor

y m

anag

emen

t, in

or

der t

o st

reng

then

tale

nt c

ultiv

atio

n an

d su

perv

isor

trai

ning

, pla

n sy

stem

atic

and

co

ntin

uous

cur

ricul

um tr

aini

ng to

hel

p en

hanc

e em

ploy

ees A

bilit

y an

d qu

ality

to

enha

nce

the

com

petit

iven

ess o

f ind

ivid

uals

and

ent

erpr

ises

.

Non

e

- 56 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

(5)D

o th

e co

mpa

ny's

prod

ucts

and

serv

ices

com

ply

with

rele

vant

law

s and

inte

rnat

iona

lst

anda

rds i

n re

latio

n to

cust

omer

hea

lth a

ndsa

fety

, cus

tom

er p

rivac

y,an

d m

arke

ting

and

labe

ling

of p

rodu

cts a

ndse

rvic

es, a

nd a

re re

leva

ntco

nsum

er p

rote

ctio

n an

dgr

ieva

nce

proc

edur

epo

licie

s im

plem

ente

d?

Ever

est b

uild

s a p

rofe

ssio

nal t

eam

to se

rve

glob

al c

usto

mer

s. Th

roug

h re

gula

r vi

sits

to c

usto

mer

s and

bra

nds,

parti

cipa

tion

in d

omes

tic a

nd fo

reig

n ex

hibi

tions

an

d ot

her c

omm

unic

atio

n ch

anne

ls, i

t res

pond

s to

and

mee

ts th

e ne

eds o

f cu

stom

ers w

ith a

n "i

nsta

nt",

"pro

fess

iona

l", a

nd "

appr

opria

te" a

ttitu

de. .

At t

he

sam

e tim

e, in

ord

er to

und

erst

and

cust

omer

opi

nion

s and

impr

ove

serv

ice

qual

ity,

a cu

stom

er sa

tisfa

ctio

n su

rvey

is c

arrie

d ou

t eve

ry y

ear,

and

a "c

usto

mer

co

mpl

aint

han

dlin

g m

etho

d" is

set u

p to

dea

l with

cus

tom

er c

ompl

aint

s. Im

prov

emen

t pla

ns m

ade

for p

roje

cts t

hat a

re n

ot sa

tisfa

ctor

y to

cus

tom

ers a

re

orga

nize

d an

d or

gani

zed

by e

nter

pris

e em

ploy

ees t

o im

plem

ent T

o ac

hiev

e cu

stom

er sa

tisfa

ctio

n.

Non

e

(6)D

oes t

he c

ompa

nyim

plem

ent s

uppl

ier

man

agem

ent p

olic

ies,

requ

iring

supp

liers

toob

serv

e re

leva

ntre

gula

tions

on

envi

ronm

enta

l pro

tect

ion,

occu

patio

nal h

ealth

and

safe

ty, o

r lab

or a

ndhu

man

righ

ts?

If so

,de

scrib

e th

e re

sults

.

Bef

ore

join

ing,

new

sup

plie

rs w

ill b

e ev

alua

ted

acco

rdin

g to

the

"Su

pplie

r Ev

alua

tion

Form

". In

the

eval

uatio

n m

echa

nism

, the

supp

lier ’

s wor

k en

viro

nmen

t, em

ploy

ee h

uman

rig

hts,

soci

al r

espo

nsib

ility

and

oth

er e

valu

atio

n ite

ms

will

be

adde

d to

enh

ance

the

sup

plie

r’s

corp

orat

e so

cial

res

pons

ibili

ty a

war

enes

s. Th

e "E

vere

st S

ocia

l Res

pons

ibili

ty S

tand

ard

Stat

emen

t" w

as is

sued

, pro

clai

min

g to

su

pplie

rs a

nd re

quiri

ng su

pplie

rs to

join

tly a

bide

by

soci

al re

spon

sibi

lity

norm

s. N

one

- 57 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

5. D

oes t

he c

ompa

nyre

fere

nce

inte

rnat

iona

llyac

cept

ed re

porti

ngst

anda

rds o

r gui

delin

es,

and

prep

are

repo

rts th

atdi

sclo

se n

on-f

inan

cial

info

rmat

ion

of th

eco

mpa

ny, s

uch

asco

rpor

ate

soci

alre

spon

sibi

lity

repo

rts?

Do

the

repo

rts a

bove

obta

in a

ssur

ance

from

ath

ird p

arty

ver

ifica

tion

unit?

Ever

est i

s goo

d at

fulfi

lling

its c

orpo

rate

soci

al re

spon

sibi

litie

s. Si

nce

2011

, it

has v

olun

taril

y di

sclo

sed

sust

aina

ble

perf

orm

ance

. It h

as is

sued

a c

orpo

rate

so

cial

resp

onsi

bilit

y re

port

ever

y ye

ar a

nd c

ontin

ues t

o co

mm

unic

ate

with

st

akeh

olde

rs. T

he c

onte

nt o

f Eve

rest

's 20

18 C

orpo

rate

Soc

ial R

espo

nsib

ility

R

epor

t is w

ritte

n in

acc

orda

nce

with

the

core

opt

ions

of t

he G

RI S

tand

ards

is

sued

by

the

Glo

bal R

epor

ting

Initi

ativ

e (G

RI),

and

als

o re

fers

to th

e "C

ompi

led

and

Dec

lare

d C

ompa

nies

of L

iste

d C

ompa

nies

" by

the

Taiw

an S

tock

Exc

hang

e "S

ocia

l Res

pons

ibili

ty R

epor

t Ope

ratio

n M

easu

res"

, com

pilin

g th

e pr

evio

us

year

's co

rpor

ate

soci

al re

spon

sibi

lity

repo

rt, e

xpos

ing

the

com

pany

's id

entif

ied

econ

omic

, env

ironm

enta

l and

soci

al su

stai

nabi

lity

them

es, r

elat

ed st

rate

gies

, go

als a

nd m

easu

res a

nd re

sults

, the

CSR

repo

rt ed

iting

team

is re

spon

sibl

e Afte

r th

e ov

eral

l pla

nnin

g, c

omm

unic

atio

n an

d in

tegr

atio

n, d

ata

aggr

egat

ion,

and

ed

iting

and

revi

sion

, eac

h ed

itor m

embe

r rev

iew

s and

revi

ses t

he re

leva

nt c

onte

nt

and

data

and

send

s it t

o th

e ge

nera

l man

ager

for r

evie

w a

nd re

leas

e. T

his r

epor

t ha

s not

bee

n ve

rifie

d by

ext

erna

l thi

rd p

artie

s.

Non

e

6.D

escr

ibe

the

diffe

renc

e, if

any

, bet

wee

n ac

tual

pra

ctic

e an

d th

e co

rpor

ate

soci

al r

espo

nsib

ility

prin

cipl

es, i

f th

e co

mpa

ny h

as im

plem

ente

d su

ch

prin

cipl

es b

ased

on

the

Cor

pora

te S

ocia

l Res

pons

ibili

ty B

est P

ract

ice

Prin

cipl

es fo

r TW

SE/T

PEx

List

ed C

ompa

nies

:

The

com

pany

ref

ers

to th

e "C

ode

of P

ract

ice

for

Cor

pora

te S

ocia

l Res

pons

ibili

ty o

f Li

sted

Com

pani

es"

to f

orm

ulat

e co

rpor

ate

soci

al r

espo

nsib

ility

po

licie

s, im

plem

ent i

nfor

mat

ion

that

pro

mot

es c

orpo

rate

gov

erna

nce,

dev

elop

s a su

stai

nabl

e en

viro

nmen

t, sa

fegu

ards

soci

al w

elfa

re, a

nd st

reng

then

s co

rpor

ate

soci

al re

spon

sibi

lity.

Cha

ritab

le o

rgan

izat

ions

and

loca

l gov

ernm

ent a

genc

ies h

ave

spar

ed n

o ef

fort.

So

far,

ther

e ar

e no

diff

eren

ces.

7.

Oth

er u

sefu

l inf

orm

atio

n fo

r exp

lain

ing

the

stat

us o

f cor

pora

te so

cial

resp

onsi

bilit

y pr

actic

es:

(1)E

nviro

nmen

tal p

rote

ctio

n: P

ursu

e en

viro

nmen

tal s

usta

inab

ility

with

eco

logi

cal r

esto

ratio

n an

d re

spec

t for

bio

dive

rsity

, bui

ld E

vere

st E

colo

gica

lIn

dust

rial P

ark

and

Ever

est N

atur

al V

eget

able

and

Fru

it Ed

ucat

ion

Farm

with

the

conc

ept o

f gre

en b

uild

ing,

and

ext

end

it to

loca

l com

mun

ities

,ho

ping

to b

ecom

e Th

e ed

ucat

ion

park

for s

usta

inab

le a

gric

ultu

re is

ded

icat

ed to

redu

cing

glo

bal w

arm

ing.

(2)O

pen

the

visi

t and

exc

hang

e of

Eve

rest

Tex

tile

Eco-

Indu

stria

l Par

k: In

ord

er to

shar

e Ev

eres

t's in

nova

tive,

sust

aina

ble,

inte

llige

nt, a

nd su

ccin

ct

- 58 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1

Dev

iatio

ns fr

om “

the

Cor

pora

te S

ocia

l R

espo

nsib

ility

Bes

t-Pr

actic

e Pr

inci

ples

for

TWSE

/TPE

x Li

sted

C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Exp

lana

tion 2

actio

ns a

nd a

chie

vem

ents

, Eve

rest

Ope

n Ec

o-In

dust

rial P

ark

is o

pen

to v

isito

rs; a

t the

sam

e tim

e, it

als

o op

ens n

atur

al v

eget

able

and

frui

t edu

catio

n fa

rms a

nd e

nviro

nmen

tal p

rote

ctio

n Th

e m

anuf

actu

ring

proc

ess o

f bric

k fa

ctor

y an

d M

IT a

utom

ated

gar

men

t fac

tory

is fo

r vis

iting

. I lo

ok fo

rwar

d to

taki

ng th

is e

xper

ienc

e as

a c

omm

unic

atio

n pl

atfo

rm fo

r ind

ustry

and

env

ironm

enta

l edu

catio

n to

pro

mot

e th

e tri

ple

surp

lus c

once

pt o

f su

stai

nabi

lity;

and

allo

w v

isito

rs to

witn

ess t

he tr

ansf

orm

atio

n an

d in

nova

tion,

sust

aina

bilit

y, a

nd sm

art g

reen

fact

orie

s of t

he T

aiw

anes

e te

xtile

in

dust

ry.

(3)T

he se

lf-ow

ned

appa

rel b

rand

"Hap

py T

aiw

an E

verS

mile

" will

allo

cate

1%

of t

he m

onth

ly tu

rnov

er a

s a p

ublic

wel

fare

fund

.N

ote:

1.

If

"Yes

" is

che

cked

und

er im

plem

enta

tion,

ple

ase

desc

ribe

the

key

polic

ies,

stra

tegi

es, a

nd m

easu

res

and

resu

lts a

dopt

ed. I

f "N

o" is

ch

ecke

d un

der i

mpl

emen

tatio

n, p

leas

e gi

ve re

ason

s and

des

crib

e re

leva

nt st

rate

gies

and

mea

sure

s to

be a

dopt

ed in

the

futu

re.

2.C

ompa

nies

who

hav

e co

mpi

led

CSR

repo

rts m

ay c

ite th

e so

urce

from

spec

ific

page

s of t

heir

CSR

repo

rts in

stea

d.3.

The

mat

eria

lity

prin

cipl

e re

fers

to e

nviro

nmen

tal,

soci

al, o

r cor

pora

te g

over

nanc

e is

sues

that

hav

e a

mat

eria

l im

pact

on

the

inve

stor

s or

othe

r sta

keho

lder

s of t

he c

ompa

ny.

- 59 -

3.3.

6 Fu

lfillm

ent o

f Eth

ical

Cor

pora

te M

anag

emen

t and

Dev

iatio

ns fr

om th

e "E

thic

al C

orpo

rate

Man

agem

ent B

est P

ract

ice

Prin

cipl

es

for T

WSE

/GT

SM L

iste

d C

ompa

nies

"

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

1.Es

tabl

ishm

ent o

f eth

ical

cor

pora

te m

anag

emen

tpo

licie

s and

pro

gram

s(1

)D

oes t

he c

ompa

ny h

ave

a B

oard

-app

rove

det

hica

l cor

pora

te m

anag

emen

t pol

icy

and

stat

ed in

its r

egul

atio

ns a

nd e

xter

nal

corre

spon

denc

e th

e et

hica

l cor

pora

tem

anag

emen

t pol

icy

and

prac

tices

, as w

ell a

sth

e ac

tive

com

mitm

ent o

f the

Boa

rd o

fD

irect

ors a

nd m

anag

emen

t tow

ards

enfo

rcem

ent o

f suc

h po

licy?

(2)

Doe

s the

com

pany

hav

e m

echa

nism

s in

plac

eto

ass

ess t

he ri

sk o

f une

thic

al c

ondu

ct, a

ndpe

rfor

m re

gula

r ana

lysi

s and

ass

essm

ent o

fbu

sine

ss a

ctiv

ities

with

hig

her r

isk

ofun

ethi

cal c

ondu

ct w

ithin

the

scop

e of

The

com

pan y

has

a "C

ode

of In

tegr

ity

Man

agem

ent"

whi

ch re

gula

tes t

he c

ode

of c

ondu

ct

of d

irect

ors,

man

ager

s and

oth

er e

mpl

oyee

s of t

he

com

pany

, and

exp

oses

the

inte

grity

man

agem

ent

polic

y on

the

com

pany

's w

ebsi

te.

The

com

pan y

and

its s

ubsi

diar

ies'

plan

s to

prev

ent

dish

ones

ty in

clud

e th

e fo

llow

ing:

1.

The

crite

ria fo

r pro

vidi

ng o

r acc

eptin

gun

just

ified

ben

efits

.2.

Prov

ide

proc

edur

es fo

r pro

cess

ing

lega

l pol

itica

l

Non

e

- 60 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

busi

ness

? D

oes t

he c

ompa

ny im

plem

ent

prog

ram

s to

prev

ent u

neth

ical

con

duct

bas

ed

on th

e ab

ove

and

ensu

re th

e pr

ogra

ms c

over

at

leas

t the

mat

ters

des

crib

ed in

Par

agra

ph 2

, A

rticl

e 7

of th

e Et

hica

l Cor

pora

te

Man

agem

ent B

est P

ract

ice

Prin

cipl

es fo

r TW

SE/T

PEx

List

ed C

ompa

nies

?

(3)

Doe

s the

com

pany

pro

vide

cle

arly

the

oper

atin

g pr

oced

ures

, cod

e of

con

duct

,di

scip

linar

y ac

tions

, and

app

eal p

roce

dure

s in

cont

ribut

ions

. 3.

To p

rovi

de p

rope

r cha

ritab

le d

onat

ion

orsp

onso

rshi

p pr

oced

ures

and

am

ount

stan

dard

s.4.

Prov

isio

ns to

avo

id c

onfli

cts o

f int

eres

t rel

ated

to d

utie

s, an

d th

eir d

ecla

ratio

n an

d ha

ndlin

gpr

oced

ures

.5.

Con

fiden

tialit

y re

quire

men

ts fo

r con

fiden

tial

and

com

mer

cial

ly se

nsiti

ve in

form

atio

n ob

tain

edfr

om b

usin

ess.

6.St

anda

rdiz

atio

n an

d pr

oces

sing

pro

cedu

res f

orsu

pplie

rs, c

usto

mer

s and

bus

ines

s tra

nsac

tion

partn

ers i

nvol

ved

in d

isho

nest

beh

avio

rs.

7.Th

e pr

oces

s of f

indi

ng v

iola

tions

of t

heco

mpa

ny's

inte

grity

man

agem

ent c

ode.

8.D

isci

plin

ary

actio

n ta

ken

agai

nst t

he o

ffend

er.

The

com

pany

's "I

nteg

rity

Man

agem

ent C

ode"

cl

early

stat

es th

at in

the

cour

se o

f eng

agin

g in

co

mm

erci

al a

ctiv

ities

, the

per

sonn

el o

f the

- 61 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

the

prog

ram

s aga

inst

une

thic

al c

ondu

ct?

Doe

s th

e co

mpa

ny e

nfor

ce th

e pr

ogra

ms a

bove

ef

fect

ivel

y an

d pe

rform

regu

lar r

evie

ws a

nd

amen

dmen

ts?

com

pany

shal

l not

dire

ctly

or i

ndire

ctly

pro

vide

s, pr

omis

e, re

ques

t or a

ccep

t any

impr

oper

ben

efits

, or

mak

e ot

her v

iola

tions

of i

nteg

rity,

law

less

ness

or

bre

ach

of fi

duci

ary

dutie

s. A

ct in

goo

d fa

ith, a

nd

clea

rly d

efin

e its

ope

ratin

g pr

oced

ures

, beh

avio

r gu

idel

ines

, dis

cipl

ine

and

appe

als.

2.Fu

lfill

oper

atio

ns in

tegr

ity p

olic

y(1

)D

oes t

he c

ompa

ny e

valu

ate

busi

ness

par

tner

s’et

hica

l rec

ords

and

incl

ude

ethi

cs-r

elat

ed c

laus

esin

bus

ines

s con

tract

s?

(2)

Doe

s the

com

pany

hav

e a

unit

resp

onsi

ble

for

ethi

cal c

orpo

rate

man

agem

ent o

n a

full-

time

basi

s und

er th

e B

oard

of D

irect

ors w

hich

repo

rts th

e et

hica

l cor

pora

te m

anag

emen

t

The

com

pany

's "I

nteg

rity

Man

agem

ent C

ode"

cl

early

stat

es th

at th

e co

mpa

ny w

ill c

onsi

der t

he

lega

lity

of a

gent

s, su

pplie

rs, c

usto

mer

s or o

ther

bu

sine

ss tr

ansa

ctio

ns a

nd w

heth

er th

ere

is a

reco

rd

of d

isho

nest

beh

avio

r bef

ore

com

mer

cial

tra

nsac

tions

, and

avo

id h

avin

g a

reco

rd o

f di

shon

esty

trad

ers.

Acc

ordi

ng to

Arti

cle

17 o

f the

Com

pany

's C

ode

of

Inte

grity

Man

agem

ent,

the

Cor

pora

te G

over

nanc

e Su

perv

isor

and

Hum

an R

esou

rces

Dep

artm

ent

unde

r the

Boa

rd o

f Dire

ctor

s are

ded

icat

ed to

the

Non

e

- 62 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

polic

y an

d pr

ogra

ms a

gain

st u

neth

ical

con

duct

re

gula

rly (a

t lea

st o

nce

a ye

ar) t

o th

e B

oard

of

Dire

ctor

s whi

le o

vers

eein

g su

ch o

pera

tions

?

prom

otio

n an

d op

erat

ion

of c

orpo

rate

inte

grity

m

anag

emen

t. Th

ey a

re re

spon

sibl

e fo

r the

fo

rmul

atio

n an

d su

perv

isio

n of

the

inte

grity

m

anag

emen

t pol

icy

and

prev

entio

n pl

an, a

nd a

re

supe

rvis

ed b

y th

e bo

ard

of d

irect

ors.

The

mai

n fu

nctio

ns a

re re

late

d to

the

anti-

corr

uptio

n m

easu

res t

o en

sure

inte

grity

man

agem

ent i

n ac

cord

ance

with

the

"Cod

e of

Inte

grity

M

anag

emen

t" a

ppro

ved

by th

e B

oard

of D

irect

ors,

form

ulat

e pl

ans t

o pr

even

t dis

hone

sty,

pla

n in

tern

al

orga

niza

tion,

pre

para

tion

and

func

tions

, red

uce

the

risk

of b

usin

ess d

isho

nest

y, a

nd p

rom

ote

the

train

ing

of in

tegr

ity p

olic

y pr

omot

ion

, Pla

n an

d im

plem

ent t

he w

hist

lebl

owin

g sy

stem

, and

ass

ist

the

boar

d of

dire

ctor

s and

man

agem

ent t

o ev

alua

te

the

impl

emen

tatio

n, a

nd re

port

to th

e bo

ard

of

dire

ctor

s onc

e a

year

.

- 63 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

(3)

Doe

s the

com

pany

est

ablis

h po

licie

s to

prev

ent c

onfli

cts o

f int

eres

t and

pro

vide

appr

opria

te c

omm

unic

atio

n ch

anne

ls, a

ndim

plem

ent i

t?

(4)

Doe

s the

com

pany

hav

e ef

fect

ive

acco

untin

gan

d in

tern

al c

ontro

l sys

tem

s in

plac

e to

impl

emen

t eth

ical

cor

pora

te m

anag

emen

t?

1.Th

e op

erat

ion

of th

e co

mpa

ny a

dher

es to

the

prin

cipl

e of

zer

o m

alpr

actic

e. If

any

per

son

take

sad

vant

age

of h

is p

ositi

on, h

e in

tend

s to

seek

his

or

othe

rs' i

mpr

oper

ben

efits

, cau

sing

the

com

pany

tosu

ffer l

osse

s. In

add

ition

to b

eing

dis

mis

sed

from

his p

ost,

he sh

all u

ncon

ditio

nally

com

pens

ate

the

com

pany

for t

he d

amag

es h

e su

ffere

d. A

ll lo

sses

.2.

If th

e co

mpa

ny's

pers

onne

l vio

late

s the

inte

grity

man

agem

ent r

egul

atio

ns, t

he c

ompa

ny w

ill p

unis

hit

acco

rdin

g to

the

seve

rity

of th

e ci

rcum

stan

ces

and

in a

ccor

danc

e w

ith th

e co

mpa

ny's

rew

ard

and

puni

shm

ent m

etho

ds.

3.Th

e co

mpa

ny h

as a

grie

vanc

e sy

stem

to p

rovi

dere

med

ies f

or th

ose

who

vio

late

this

Cod

e in

acco

rdan

ce w

ith re

leva

nt re

gula

tions

.

The

com

pany

has

a ri

goro

us a

ccou

ntin

g sy

stem

an

d a

dedi

cate

d ac

coun

ting

unit.

The

fina

ncia

l st

atem

ents

are

che

cked

(or r

evie

wed

) by

a ce

rtifie

d

- 64 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

Doe

s the

inte

rnal

aud

it un

it fo

llow

the

resu

lts

of u

neth

ical

con

duct

risk

ass

essm

ents

and

de

vise

aud

it pl

ans t

o au

dit t

he sy

stem

s ac

cord

ingl

y to

pre

vent

une

thic

al c

ondu

ct, o

r hi

re o

utsi

de a

ccou

ntan

ts to

per

form

the

audi

ts?

(5)

Doe

s the

com

pany

regu

larly

hol

d in

tern

al a

ndex

tern

al e

duca

tiona

l tra

inin

gs o

n op

erat

iona

lin

tegr

ity?

acco

unta

nt in

acc

orda

nce

with

the

regu

latio

ns a

nd

anno

unce

d in

acc

orda

nce

with

the

regu

latio

ns to

en

sure

the

accu

racy

and

tran

spar

ency

of f

inan

cial

in

form

atio

n. In

ord

er to

impl

emen

t the

"Pub

lic

Issu

ance

Com

pani

es E

stab

lish

Inte

rnal

Con

trol

Syst

em H

andl

ing

Gui

delin

es"

and

"Int

egrit

y M

anag

emen

t Cod

e", i

n ad

ditio

n to

hav

ing

an

inte

rnal

aud

it de

partm

ent,

the

com

pany

est

ablis

hes

a re

leva

nt in

tern

al c

ontro

l sys

tem

, reg

ular

ly c

heck

s an

d re

vise

s its

effe

ctiv

enes

s, an

d re

gula

rly c

heck

s th

e co

mpl

ianc

e w

ith th

e pr

eced

ing

syst

em T

o pr

epar

e an

aud

it re

port

and

subm

it it

to th

e bo

ard

of d

irect

ors.

In o

rder

to e

stab

lish

an h

ones

t cor

pora

te c

ultu

re

and

prev

ent d

isho

nest

beh

avio

rs, t

he c

ompa

ny

irreg

ular

ly e

duca

tes i

ts e

mpl

oyee

s and

rem

inds

its

stak

ehol

ders

to o

bser

ve a

nd re

spec

t the

com

pany

's m

oral

and

inte

grity

stan

dard

s. Th

e re

leva

nt

- 65 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

oper

atin

g pr

oced

ures

and

gui

delin

es a

nd o

ther

pr

ovis

ions

are

pub

licly

dis

clos

ed o

n th

e co

mpa

ny's

web

site

. 3.

Ope

ratio

n of

the

inte

grity

cha

nnel

(1)

Doe

s the

com

pany

est

ablis

h bo

th a

rew

ard/

puni

shm

ent s

yste

m a

nd a

n in

tegr

ityho

tline

? C

an th

e ac

cuse

d be

reac

hed

by a

nap

prop

riate

per

son

for f

ollo

w-u

p?

(2)

Doe

s the

com

pany

hav

e in

pla

ce st

anda

rdop

erat

ing

proc

edur

es fo

r inv

estig

atin

gac

cusa

tion

case

s, as

wel

l as f

ollo

w-u

p ac

tions

and

rele

vant

pos

t-inv

estig

atio

n co

nfid

entia

lity

mea

sure

s?

The

Com

pany

's "I

nteg

rity

Man

agem

ent C

ode"

st

ipul

ates

that

the

com

pany

's pe

rson

nel f

ind

that

th

ere

are

viol

atio

ns o

f the

inte

grity

man

agem

ent

regu

latio

ns, a

nd sh

ould

take

the

initi

ativ

e to

repo

rt to

the

audi

t com

mitt

ee, m

anag

er, i

nter

nal a

udit

supe

rvis

or, h

uman

reso

urce

s offi

ce o

r oth

er

appr

opria

te su

perv

isor

.

The

pers

onne

l of t

he c

ompa

ny fi

nd th

at th

ere

are

viol

atio

ns o

f the

inte

grity

man

agem

ent r

egul

atio

ns,

and

shou

ld ta

ke th

e in

itiat

ive

to re

port

to th

e au

dit

com

mitt

ee, m

anag

er, i

nter

nal a

udit

supe

rvis

or,

hum

an re

sour

ces d

epar

tmen

t or o

ther

app

ropr

iate

su

perv

isor

. The

com

pany

will

kee

p th

e id

entit

y of

Non

e

- 66 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

rate

M

anag

emen

t Bes

t Pr

actic

e Pr

inci

ples

for

TWSE

/GTS

M L

iste

d C

ompa

nies

” an

d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

(3)

Doe

s the

com

pany

pro

vide

pro

per

whi

stle

blow

er p

rote

ctio

n?

the

info

rman

t and

the

cont

ent o

f the

repo

rt co

nfid

entia

l..

The

com

pany

will

kee

p co

nfid

entia

l the

iden

tity

of

the

info

rman

t and

the

cont

ent o

f the

repo

rt, so

as t

o pr

otec

t the

info

rman

t fro

m im

prop

er d

ispo

sal d

ue

to th

e re

port.

4.St

reng

then

ing

info

rmat

ion

disc

losu

re(1

)D

oes t

he c

ompa

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iscl

ose

its e

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rate

man

agem

ent p

olic

ies a

nd th

e re

sults

of i

tsim

plem

enta

tion

on th

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mpa

ny’s

web

site

and

MO

PS?

The

com

pany

has

Chi

nese

and

Eng

lish

web

site

s th

at d

iscl

ose

the

cont

ent o

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's in

tegr

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man

agem

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ode

and

rela

ted

info

rmat

ion.

Non

e

5.If

the

com

pany

has

est

ablis

hed

the

ethi

cal c

orpo

rate

man

agem

ent p

olic

ies b

ased

on

the

Ethi

cal C

orpo

rate

Man

agem

ent B

est-P

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ice

Prin

cipl

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r TW

SE/T

PEx

List

ed C

ompa

nies

, ple

ase

desc

ribe

any

disc

repa

ncy

betw

een

the

polic

ies a

nd th

eir i

mpl

emen

tatio

n.

Th

ere

have

bee

n no

diff

eren

ces.

- 67 -

Eval

uatio

n Ite

m

Impl

emen

tatio

n St

atus

1 D

evia

tions

from

the

“E

thic

al C

orpo

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actic

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ples

for

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M L

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d R

easo

ns

Yes

No

Abs

tract

Illu

stra

tion

6.O

ther

impo

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info

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ion

to fa

cilit

ate

a be

tter u

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eth

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cor

pora

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anag

emen

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icie

s (e.

g., r

evie

w a

ndam

end

its p

olic

ies)

.Th

e co

mpa

ny a

bide

s by

the

com

pany

law,

secu

ritie

s tra

ding

law,

com

mer

cial

acc

ount

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law,

regu

latio

ns re

late

d to

list

ing

on th

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unte

r, an

d la

ws a

nd re

gula

tions

rela

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to o

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com

mer

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act

iviti

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s the

bas

is fo

r the

impl

emen

tatio

n of

hon

est o

pera

tion.

The

com

pany

has

ad

ded

impo

rtant

info

rmat

ion

such

as i

nteg

rity

and

norm

s on

the

proc

urem

ent s

yste

m to

ens

ure

that

supp

liers

com

ply

with

it, a

nd a

llow

ve

ndor

s to

have

any

dam

age

to th

eir r

ight

s or i

nter

ests

in th

e pr

ocur

emen

t pro

cess

, and

hav

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smoo

th a

ppea

l cha

nnel

. No

mat

ter t

he

inte

rnal

em

ploy

ees a

nd e

xter

nal p

artn

ers a

lway

s uph

old

the

high

est s

tand

ards

of e

thic

s, th

e su

pplie

r’s b

riber

y an

d em

ploy

ee’s

ille

gal

beha

vior

will

be

pros

ecut

ed b

y la

w.

- 68 -

3.3.7 Corporate Governance Guidelines and Regulations

Please refer to the Company’s website at http://www.everest.com.tw

3.3.8 Other Important Information Regarding Corporate Governance

1. The company's employee behavior or ethics code: integrity, teamwork,perseverance, and innovation are the company's business philosophy and the codeof conduct for each Everest person.

2. The company’s financial information is transparent and relevant personnel haveobtained the relevant licenses specified by the competent authority.

License Number of PeopleCertified Internal Auditor 1

Land administration agents 1Certified Public Accountant 1

3. The company manager's training situation:Trainee Course Host Institution hours

Audit Supervisor

Huang Chang Huang

How auditors detect fraud in financial statements

The Institute of Internal Auditors, R.O.C. 12

Prevention of domestic and foreign money laundering and combating terrorist financing related laws, risk trends, aspects and case studies

Accounting supervisor

Mei Hsiu Huang

Accounting Supervisor Continuing Education Course

National Cheng Kung University 12

3.3.9 Internal Control Systems

A. Disclosures Required for the Implementation of the Internal Control System

Please refer to the Chinese annual report.

B. Penal Provisions

If there has been any legal penalty against the company and its internal personnel, or any disciplinary penalty by the company against its internal personnel for violation of the internal control system, during the most recent fiscal year or during the current fiscal year up to the publication date of the annual report, where the result of such penalty could have a material effect on shareholder interests or securities prices, the annual

- 69 -

report shall disclose the penalty, the main shortcomings, and condition of improvement: None.

3.3.10 Major Resolutions of Shareholders’ Meeting and Board MeetingsA. Summary form of shareholders' meeting

Date Major resolutions Implementation situationJune 14, 2019 Report matters

1. 2018 annual business report2. 2018 Annual Financial Report3. The Audit Committee checked the 2018

final accounts report4. 2018 Director and Employee

Remuneration Report5. Revise the "Code of Ethical Conduct"

and "Code of Integrity Management"reports

Not applicable

Recognition matters1. Admitted to pass the 2018 final

accounts list case2. Admitted to approve the 2018 surplus

distribution plan

Set 2019.09.01 as the base date and distributed stock dividends on 2019.09.26

Discussion matters1. The company's 2018 shareholder

dividend surplus was converted tocapital increase to issue new shares

2. Amend some of the articles of thecompany's articles of association

3. Amend some provisions of thecompany's "Procedure for Fund Loanand Others"

4. Amend some provisions of thecompany's "Endorsement GuaranteeOperation Procedure"

5. Amend some provisions of thecompany's "Procedure for Obtaining orDisposing of Assets"

Has been processed in accordance with the revised operating procedures.

B. Summary table of board meetingsItem Date Major resolutions

4th( Eleventh Session) Mar 19, 2019

1. Approved the proposal of EnTie Bank's extension NTD$ 200 millionfor the mid-term line of loan.2. Approved the proposal of renewing Taishin Bank extends the short-term credit facilities.3. Approved the proposal of renewing Bangkok Bank extends the mid-term general limit.4. Approved the proposal of renewing HSBC extends the general creditfacilities.5. Approved the proposal of renewing KGI Bank extends the mid-termgeneral limit.6. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest Investment (Holding) Ltd. to apply theloan commitments from the Bangkok Bank.7. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest Investment (Holding) Ltd. to renew theUSD facilities from the KGI Bank.8. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest Development (Shanghai) Co., Ltd. torenew the loan commitments from the CTBC Bank.9. Approved the proposal of the subsidiary named the Everest Apparel(Ethiopia) S.C. and (Haiti) S.A.'s the receivable is more than a year by

- 70 -

accounts receivable-related parties change to loan to others.10. Approved the company's year 107 individual and consolidatedfinancial reports11. Approved the company's year 107 surplus distribution plan12. Approved the company's year 107 director and employeecompensation case13. Approved revising the company policy's several articles.14. Approved revising several articles from the company's managementof loans to others.15. Approved revising several articles from the company's managementof making endorsements and guarantees.16. Approved revising several articles from the company's proceduresfor acquisition or disposal of assets.17. Approved the date of the year 108 Annual General Meeting ofShareholders and related matters concerning the acceptance ofshareholder proposals.18. Approved the proposal of the year 108's annual operating budget.19. Approved the proposal of the company's year 108 annual capitalexpenditure budget (parent company is Taiwan factory, subsidiary areShanghai factory, Thailand factory, U.S. factory, Ethiopia factory, Haitifactory).20. Approved the proposal of the appointment and removal of thecompany's manager or above.21. Approved the proposal of the internal control statement for the year107.22. Approved the proposal of the Far Eastern International Bank extendsshort-term and mid-term for the general limit and the USD facilities'forward exchange agreement.23. Approved the proposal of renewing the Exim Bank Tainan branch'sshort-term export credit facilities for NTD 200 million.24. Approved the proposal of renewing the Shanghai Commercial andService Bank extends the short-term loan limit and the USD's exportbills negotiation and export loan.25. Approved the proposal for making endorsement and guarantees tothe subsidiary named Everest Investment (Holding) Ltd. provides short-term facilities from the Entie Bank.26. Approved the proposal for making endorsement and guarantees tothe subsidiary named Everest Investment (Holding) Ltd. extends thegeneral credit facilities from the HSBC.27. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest (Thailand) Ltd. to renew the USDfacilities from the Mizuho Bank.28. Approved the company's 107 annual shareholders' dividend surplusto increase capital to issue new shares.

5th( Eleventh Session)

May 09, 20191. Approved the proposal of the Mega Bank extends the short-term and

mid-term general limit.2. Approved the proposal of renewing the Taiwan Cooperative Bills

Finance Corporation extends the short-term commercial paper.3. Approved the proposal of renewing the China Bills Finance

Corporation extends the short-term commercial paper.4. Approved the proposal of the SinoPac Bank extends the mid-term

general limit.5. Approved the proposal for making endorsements and guarantees to the

subsidiary named Everest Investment (Holding) Ltd. extends the short-term USD facilities from the Yuanta Bank.

6. Approved the proposal for making endorsements and guarantees to thesubsidiary named Everest Investment (Holding) Limited provides theshort-term USD facilities from the SinoPac Bank.

7. Approved the proposal of renewing the loan funds to the subsidiarynamed Everest Textile USA, LLC.

8. Approved the proposal of the subsidiary named the Everest Apparel(Ethiopia) S.C. and (Haiti) S.A.'s the receivable is more than a year byaccounts receivable-related parties change to loan to others.

9. Approved the proposal of loaning to Everest Apparel (Ethiopia) S.C.

- 71 -

and the debt is sold to Hongzhan International Investment Co., Ltd.10. Approved the company's 107 annual business report11. Approved the proposal of the dismissal and appointment of the

members of the fourth salary and compensation committee of thecompany.

12. Approved revising several articles from the company's "CorporateGovernance Code", "Board Meeting Rules of Procedure", "AuditCommittee Organization Rules" and "Salary and RemunerationCommittee Organization Rules".

6th( Eleventh Session)

Aug. 08, 20191. Approved the proposal of renewing the Mega Bank provides theshort-term general credit facilities and adds the long-term line of loan.2. Approved the proposal of renewing the Ta Ching Bills FinanceCorporation's Kaohsiung branch extends the company's short-termcommercial paper facilities.3. Approved the proposal of renewing the EnTie Bank's mid-term line ofloan.4. Approved the proposal of renewing the BNP Paribas extends thecompany the short-term USD facilities.5. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Textile USA, LLC to applythe loan commitments from the Mizuho Bank.6. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Textile USA, LLC to applythe loan commitments from the E. Sun Bank.7. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest Investment (Holding) Ltd. to apply theUSD facilities from the O-Bank.8. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest International Investment Co., Ltd to applythe loan from the Exim Bank.9. Approved the proposal of the company loans to Everest Apparel(Ethiopia) S.C. and (Haiti) S.A., the claim is sold to EverestInternational Investment Co., Ltd.10. Approved the proposal of the subsidiary named the Everest Apparel(Ethiopia) S.C. and (Haiti) S.A.'s the receivable is more than a year byaccounts receivable-related parties change to loan to others.11. Approval of the company's year 107 surplus distribution plan basedate12. Approved the cash increase for the subsidiary Everest InternationalInvestment Co., Ltd.13. Approved establish the company's "Board Performance EvaluationMethod".

7th( Eleventh Session)

Nov. 07, 20191. Approved the proposal of renewing the Grand Bills FinanceCorporation's Kaohsiung branch extends the company issued short-termcommercial paper.2. Approved the proposal of renewing the Mega Bills Finance Co., Ltd.extends the company issued short-term commercial paper.3. Approved the proposal of renewing the E. Sun Bank extends thecompany's short and mid-term's general limit and export billsnegotiation facilities.4. Approved the proposal of the company's debt from the accountsreceivable’s by the subsidiary named the Everest Apparel (Ethiopia)S.C. and (Haiti) S.A. is sold to the Everest Apparel (HK) Ltd.5. Approved the change case of the company's financial officer6. Approved the appointment and removal of the company's manager orabove7. Approved the proposal of loan to the subsidiary named EverestInternational Investment Co., Ltd.8. Approved the proposal of the year 109 annual plan of assessment

- 72 -

8th( Eleventh Session)

Mar. 19, 20201. Approved the proposal of renewing the Bangkok Bank extends thecompany's short and mid-term's general credit facilities.2. Approved the proposal of renewing the HSBC extends the company'sshort-term general limit.3. Approved the proposal of renewing the Taishin Bank extends thecompany's short-term credit facilities.4. Approved the proposal of renewing the SinoPac Bank extends thecompany's short-term general limit.5. Approved the proposal of renewing the International Bills FinanceCorporations extends the company's short-term commercial paperfacilities.6. Approved the proposal of renewing the O-Bank extends thecompany's mid-term, export bills negotiation and derivative financialproduct's facilities.7. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Textile (Thailand), Co., Ltd.to apply the loan commitments from the Mizuho Bank.8. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Investment (Holding) Ltd. toapply the loan commitments from the Bangkok Bank.9. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Investment (Holding) Ltd. toapply the loan commitments from the HSBC.10. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Investment (Holding) Ltd. toapply the loan commitments from the KGI Bank.11. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest Development (Shanghai) Co., Ltd. torenew the loan commitments from the CTBC Bank.12. Approved the company's year 108 annual business report,individual and consolidated financial report13. Approved the company's year 108 annual operating lossappropriation plan14. Approved revising the company policy's several articles15. Approved revising several articles from the company's "IntegrityManagement Code".16. Approved revising several articles from the company's "Rules ofprocedure for shareholders' meetings ".17. Approved the company reiterates the self-compiled financialreport, and revises the internal control system and internal audit system.”18. Approved the date of the year 109 regular shareholders' meetingand relevant matters related to the acceptance of shareholders' proposals19. Approved the company's the 109 annual operating budget20. Approved the company's the 109 annual capital expenditure budget21. Approved the appointment and removal of the company's manageror above22. Approved the company's year108 internal control statement23. Approved the proposal of renewing the Far Eastern InternationalBank extends short-term and mid-term for the general limit and theforward exchange agreement.24. Approved the proposal of loaning to the subsidiary named EverestApparel (HK), Ltd.25. Approved the proposal of loaning to the subsidiary named EverestApparel (Ethiopia) S.C.26. Approved the proposal for making endorsements and guarantees tothe subsidiary named Everest Textile USA, LLC to apply the loancommitments from the JihSun Bank.

- 73 -

3.3.11 Major Issues of Record or Written Statements Made by Any Director or Supervisor Dissenting to Important Resolutions Passed by the Board of Directors

None

3.3.12 Resignation or Dismissal of the Company’s Key Individuals, Including the Chairman, CEO, and Heads of Accounting, Finance, Internal Audit, Corporate Governance and R&D

9th( Eleventh Session)

May 06, 20201. Approved the proposal of renewing the Shanghai Commercial andService Bank extends the short-term general loan, export billsnegotiation, export loan and the mid-term line of loan.2. Approved the proposal of renewing the Taiwan Cooperative BillsFinance Corporation extends the company's short-term commercialpaper facilities.3. Approved the proposal of renewing the China Bills FinanceCorporation extends the company's short-term commercial paperfacilities.4. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Investment (Holding) Ltd. toapply the short-term USD line of loan from the SinoPac Bank.5. Approved the proposal for renewing and making endorsements andguarantees to the subsidiary named Everest Investment (Holding) Ltd. toapply the short-term USD line of loan from the Yuanta Bank.6. Approved the proposal of renewing loans to the subsidiary namedEverest Textile USA, LLC.7. Approved the proposal of loaning to the subsidiary named EverestApparel (Haiti) S.A.

Title NameDate of

AppointmentDate of

Termination

Reasons for Resignation or

Dismissal

Finance Supervisor

Ying-Shiuan Yu 08, 08, 2017 09, 30, 2019 Personal career

planning

- 74 -

3.4 Information Regarding the Company’s Audit Fee and Independence

3.4.1 Audit Fee

Unit: NT$ thousands

Note: Note: for transfer pricing fees, RPA consulting fees.

3.4.2 Replacement of CPA None

3.4.3 Audit Independence

The Company’s Chairman, Chief Executive Officer, Chief Financial Officer, and managers in charge of its finance and accounting operations did not hold any positions in the Company’s independent auditing firm or its affiliates during 2019.

Accounting Firm Name of CPA Period Covered by CPA’s Audit Remarks

Deloitte & Touche Jiz-hen Li & Li-yuan Guo

2019.01.01~2019.12.31

Fee Items Fee Range Audit Fee

Non-audit Fee

Total

1 Under NT$ 2,000,000

2 NT$2,000,001 ~ NT$4,000,000 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

Accounting Firm

Name of CPA

Audit Fee

Non-audit Fee Period Covered by CPA’s Audit

Remarks System of Design

Company Registration

Human Resource Others Subtotal

Deloitte & Touche

Jiz-hen Li 6,060 - 8 - 1,678

(note) 7,738 2019.01.01

Li-yuan Guo 2019.12.31

- 75 -

3.5 Changes in Shareholding of Directors, Supervisors, Managers and Major Shareholders

Unit: Shares

Title Name

2019 As of Apr. 30, 2020

HoldingIncrease

(Decrease)

PledgedHoldingIncrease

(Decrease)

HoldingIncrease

(Decrease)

PledgedHoldingIncrease

(Decrease)

ChairmanRepresentative

Weiyu Innovation InvestmentJohnny Hih

4,357 22,675 - - -

ChairmanRepresentative

Yue Ding IndustryChing-Lai Yeh

21,23032,407 - - -

ChairmanRepresentative

Shuo Quan Co., Ltd.Shou-Chun Yeh

2,23154,021 - - -

ChairmanRep.Rep.Rep.

Yuan Ding InvestmentDonglas Tong Hsu

Kao Shan WuEric Hu

2,521,9290

3,8260

- - -

DirectorRep.Rep.

Yu Yuan Investment Co., Ltd.Charles Wang

Haw Sheng Lin

257,7940

11,535- - -

Ind. Director Shiou Chung Chen 0 - - -Ind. Director Jen Fa Chen 20,418 - - -Ind. Director Yin Chi Chuang 20,413 - - -

President Ching-Lai Yeh 32,407 - - -Vice President Sen Mao Wu 1,896 - - -Vice President Wen Gui Hsiang 2,307 - - -Vice President Hsien Shen Hung 1,629 - - -Vice President Ming Yi Hsiao 8,724 - - -Vice President Chin Chueh Kao 3,107 - - -Vice President Chin Liang Chen 1,636 - - -Assistant M. Shih Jung Lin 0 - - -Assistant M. Hui Min Cheng 715 - - -Assistant M. Ping Liang Chen 2,228 - - -Assistant M. Wen Chin Yeh 3,804 - - -Assistant M. Tung Sheng Hung 1,347 - - -Assistant M. Mei Na Liu 0 - - -Assistant M. Chien Hua Kao 0 - - -Assistant M. Chin Li Kao 30 - - -Assistant M. Yi Cheng Tseng 62 - - -Assistant M. Huang Shan Lin 0 - - -Assistant M. Ting Hua Hung 0 - - -Assistant M. Fu Yu Chiu 0 - - -Assistant M. Hsiang Jui Liu 0 - 3,000 -Assistant M. Yaozhou Wu 0 - - -Assistant M. Lung Chih Chen 0 - - -Assistant M. Tsung Hung Li 0 - - -Assistant M. Wen Guang Luo 0 - - -Assistant M. Hsu Chiung Hua 0 - - -Accounting Supervisor Mei Hsiu Huang 250 - - -

- 76 -

3.5.1 Shares Trading with Related Parties Not applicable

3.5.2 Shares Pledge with Related Parties Not application

3.6 Relationship among the Top Ten Shareholders

As of 4/17/2020

3.7 Ownership of Shares in Affiliated Enterprises

As of 4/17/2020

Name Current

Shareholding Spouse’s/minor’s

Shareholding

Shareholding by Nominee Arrangement

Name and Relationship Between the Company’s Top Ten Shareholders, or

Spouses or Relatives Within Two Degrees

Remarks

Shares % Shares % Shares % Name Relationship

Yuan Ding Investment Rep.:Donglas Tong Hsu

Oriental Union Chemical Yu Yuan Investment

Same Chairman Invested by Far

Eastern New Century

Refer 3.2.1

Everest I.D.I. Rep.: Charles Wang None None Not

applicable Guangwei Investment

Rep.:Ying-Nan Chuang None None Not applicable

Fu Ming Transportation Rep.: Johnny Hih None None Not

applicable

Yu Yuan Investment Rep.: Chun Ming Chen Yuan Ding Investment

100% invested by Far Eastern New

Century Refer 3.2.1

Oriental Union Chemical Rep.: Donglas Tong Hsu

Yuan Ding Investment Ton Fu Investment

Same Chairman 100% Invest Ton

Fu Investment

Not applicable

Ton Fu Investment Rep.: Cheng Yu Zheng, Oriental Union Chemical

100% Invested by Oriental Union

Chemical Refer 3.2.1

Citibank (Taiwan) Commercial Bank

Investment Account None None Not

applicable

Shun Yi Yang, None None Not applicable

Hsiu Hsiu Yu, None None Not applicable

Affiliated Enterprises

Ownership by the Company

Direct or Indirect Ownership by Directors/Supervisors/Managers Total Ownership

Shares % Shares % Shares % Everest Investment (Holding) Ltd. Everest International Develop Investment Co., Ltd. Jin Lead Industrial Co., Ltd. Everest Textile (HK) Co., Ltd. Far Eastern International Bank Co., Ltd. Dah Chung Bills Finance Corp.

- 77 -

IV. Capital Overview

4.1 Capital and Shares

4.1.1 Source of Capital

A. Issued Shares

Unit: NT$ thousands, thousand shares

B. Type of Stock

C. Information for Shelf RegistrationNone

4.1.2 Status of ShareholdersAs of 04/17/2020

Month/Year

ParValue(NT$)

Authorized Capital Paid-in Capital Remark

SharesAmount

(NT$ thousands)

SharesAmount

(NT$ thousands)

Sources of Capital (Earning)

CapitalIncreased byAssets Other

than Cash

OtherCash Earning APIC

2015 None None2016 None None2017 None None2018 None None2019 None None

Share TypeAuthorized Capital

RemarksIssued Shares Un-issued Shares Total Shares

Common Stock None

Item Government Agencies

Financial Institutions

Other Juridical Persons

Domestic Natural Persons

Foreign Institutions &

Natural PersonsTotal

Number of ShareholdersShareholding (shares)

Percentage

- 78 -

4.1.3 Shareholding Distribution Status

A. Common SharesAs of 04/17/2020

B. Preferred SharesNone

4.1.4 List of Major Shareholders

As of 04/17/2020

Note: List all shareholders with a stake of 5 percent or greater, and if those are fewer than 10 shareholders, also list all shareholders who rank in the top 10 in shareholding percentage, and specify the number of shares and stake held by each shareholder on the list.

Class of Shareholding (Unit: Share)

Number of Shareholders Shareholding (Shares) Percentage

1 ~ 9991,000 ~ 5,000

5,001 ~ 10,00010,001 ~ 15,00015,001 ~ 20,00020,001 ~ 30,00030,001 ~ 40,00040,001 ~ 50,000

50,001 ~ 100,000100,001 ~ 200,000200,001 ~ 400,000400,001 ~ 600,000600,001 ~ 800,000

800,001 ~ 1,000,0001,000,001 or over

Total

Shareholder's NameShareholding

Shares PercentageYuan Ding Investment Co., Ltd.Everest International Develop Investment Co.,Ltd.Guangwei Investment Co., Ltd.Fu Ming Transportation Co., Ltd.Yu Yuan Investment Co., Ltd.Oriental Union Chemical CorporationTon Fu Investment Corp.Citibank (Taiwan) Commercial Bank Investment AccountShun Yi Yang,Hsiu Hsiu Yu,

- 79 -

4.1.5 Market Price, Net Worth, Earnings, and Dividends per Share

Unit: NT$

Note 1: Price / Earnings Ratio = Average Market Price / Earnings per Share

Note 2: Price / Dividend Ratio = Average Market Price / Cash Dividends per Share

Note 3: Cash Dividend Yield Rate = Cash Dividends per Share / Average Market Price

Note 4: The surplus distribution plan is determined after the resolution passed by this (2020) annual

shareholders' meeting.

Note 5: It is calculated based on the weighted average number of shares issued overseas and the number

of shares after retroactive adjustment of surplus and capital reserve conversion to capital increase.

4.1.6 Dividend Policy and Implementation Status

A. Dividend Policy

If earnings are available for distribution at the end of a fiscal year, 10% of net earnings

– that is, after offsetting any loss from prior year(s) and paying all taxes and dues – shall

be set aside as legal reserve and appropriated in accordance with the Securities

Exchange Law. Then, the remaining net earnings after special reserve can be distributed

along with prior accumulated unappropriated retained earnings. The Board of Directors

will consider the above-mentioned factors when making the dividend distribution

Items 2018 2019 As of 03/31/2020

Market Price per Share

Highest Market Price 15.00 12.6 9.39

Lowest Market Price 11.50 8.99 4.93

Average Market Price 13.15 10.85 7.36

Net Worth per Share

Before Distribution 10.88 10.01 9.42

After Distribution 10.88 (Note 4) (Note 4)

Earnings per Share (Note 5)

Weighted Average Shares

(thousand shares) 474,281 483,767 483,767

Diluted Earnings Per Share 0.33 (0.56) (0.31)

Adjusted Diluted Earnings Per Share 0.33 (Note 4) (Note 4)

Dividends per Share

Cash Dividends 0 0 Not applicable

Stock Dividends

Dividends from Retained Earnings 0.2 None Not applicable

Dividends from Capital Surplus None None Not applicable

Accumulated Undistributed Dividends None None Not applicable

Return on Investment

Price / Earnings Ratio (Note 1) 40 Not

applicable Not applicable

Price / Dividend Ratio (Note 2) Not

applicable

Not

applicable Not applicable

Cash Dividend Yield Rate (Note 3) 0 0 Not applicable

- 80 -

proposal. Dividends will be distributed in accordance with the resolution approved by the Board of Directors and at the annual shareholders’ meeting. The surplus may be partly reserved according to the business situation, and the shareholder dividends will be distributed equally based on all the shares. However, in the event of an increase in capital, the dividends for the newly added shares of the year shall be handled in accordance with the resolution of the shareholders’ meeting. Dividends of the company shall take into account the characteristics of the changing business conditions of the business under consideration, consider the impact of the life cycle of each product or service on future capital needs and taxation, and distribute them under the goal of maintaining a stable dividend. The distribution of dividends shall not be less than 50% of the net after-tax net profit of the year after deducting the amount of losses made up, the statutory surplus reserve and the special surplus reserve, and the cash dividend portion shall not be less than the percentage of the current year’s shareholder dividend ten.The proposed dividend distribution situation of the shareholders' meeting: 2020 is a loss after tax, so no dividend will be distributed.

B. Proposed Distribution of Dividend

Not applicable

4.1.7 Compensation of Employees, Directors

1. The percentage or scope of employee compensation and director compensationincluded in the company's articles of association:If the company makes a profit for the year, 2% to 3.5% should be set aside for employee compensation, and no more than 2.5% for director compensation. However, when the company still has accumulated losses, it should reserve the compensation amount in advance.

2. The estimation basis of the employee compensation and director compensationamount, the calculation basis of the number of shares allotted stock compensationand the actual allotment amount in the current period are different from the estimated number of accounting treatment: Not applicable.

3. The situation of remuneration for distribution by the board of directors in 2019: Notapplicable.

4. The actual distribution of employee compensation and director compensation in theprevious year (2018): The actual distribution of employee compensation anddirector compensation in 2018 is consistent with the surplus distribution case approved by the shareholders' meeting.

4.1.8 Buy-back of Treasury Stock: None4.2 Bonds: None

4.3 Global Depository Receipts: None4.4 Employee Stock Options: None4.5 Status of New Shares Issuance in Connection with Mergers and AcquisitionsNone4.6 Financing Plans and Implementation: None

- 81 -

V. Operational Highlights

5.1 Business Activities

5.1.1 Business Scope

A. Main products

Main products Proportion of business in 109 Fabric 89.20% Textured Yarn 7.50% Other 3.30% Total 100.0%

B. New products development(1) Commodity items: Special polyester textured yarn, LYCRA covered yarn, Suede fabric, Ultra-fine

fibers and ultra-light fabrics, Functional high-density fabric, Filament and Staple blended fabric, Highwaterproof and breathable lamination, Smart memory fabric, Filament dyed fabric, Staple dyed fabric,Ultra-thin lamination fabric, AIR FLOW lamination fabric, Washable super water repellent fabric,Graphene film lamination products, High-visibility fluorescent film lamination products, Lowimpedance conductive film, Development of hot compress composite products, Rendering printingseries products, Digital flocking printing products.

(2) New products planned to be developed Graphene fiber, PTFE fiber, Recycle Dope Dyed highvisibility polyester fiber, Non-melting flame retardant polyester fiber, Wear-resistant polyesterfiber, Aerogel polyester fiber, Cordura wear-resistant elastic cloth, Wool-like lamination fabric,Yarn dyed seamless clothes, Three-dimensional jacquard knitted fabric, Rich high-elastic knittedfabric, Lightweight knitted fabric, Healthcare compound product development, Industrial flameretardant cloth product development, Digital flocking printing series, Digital printingdevelopment module series.

5.1.2 Industry Overview A. Industry status and development

In 2019, affected by the U.S.-China trade war, the U.S.'s aggressive means of trade may affect the growth of the international economy, leading to a conservative international brand procurement strategy. In order to reduce costs and shorten delivery time, international brands tend to "one-stop" centralized procurement, reduce the number of suppliers, and at the same time considering regional trade tariff preferences, the benefits of brand factories turning orders gradually is appeared.

B. Relevance of industry upstream, midstream and downstreamTextile industry is a necessary industry for people's livelihood. The upstream is the polyester fiber(Polyester) industry, the raw materials used are products from the petrochemical industry. Themidstream is a process of natural fibers and synthetic fibers such as: spinning, weaving, dyeing andfinishing. Downstream is the manufacturing of textiles for the garment industry, home furnishings, andcurtains. Please refer to pages 42-46 for the integration of the company's industrial upstream,midstream and downstream connections.

C. Product development trends and competitionToday's market trend has shifted from functional fabrics to advanced popular fabrics. The demand ofmajor brands is increasing day by day. At present, popular brands also combine environmentalprotection issues with story marketing to expand market demand. The promotion of social media hasenabled consumers to recognize the importance of environmental protection issues, and promoted thedevelopment of environmentally friendly apparel, which has greatly increased the demand forcomposite functional textiles. Therefore, the international brands are urged to readjust theirconsumption patterns and market competition rules.

5.1.3 Research and Development

A. Research and development expenditure

- 82 -

NT$263.88 million in 2019. For the first quarter of 109, it was NT$ 61.54 million. In 109, it is expected to invest 3 to 4% of the operating income in research and development expenses.

B. Successfully developed technologies or new products are as follows

Ever Knit Soft Shell Ever I-Fiber Leather Ever Cool Promoting Ever Ge Warm Ever Lace-like Perspective Print Ever Rainbow Reflective Print Digital print Ever Smart Heating Clothing Ever Airflow Wear Ever Polar bear Wear Ever Recycle-PET& Bio Soft Shell Ever Graphene Wear Ever Aurora Foil Ever FR Work Wear Ever Med Ever Film Ever Frozen Dye.

5.1.4 Long-term and Short-term Development A. Short-term business development plans: With the breakthrough of technology, manytextiles have been used in aerospace, transportation, industry, medical treatment, home decoration,agriculture, construction, packaging, sports, civil engineering, safety protection and environmentalprotection. Industrial textiles have become a prominent field. Everest uses core-technologies to formalliances with different industries, and transforms into a new blue ocean in the industrial textile market.Based on the structural engineering design of textiles and the function such as high heat-resistant, flameretardant, chemical resistance, we choose different materials and woven, knitting elasticity and specialfinishing and laminating technology to increase the use of cross-industry fabrics, the products such asEver FR Work Wear, Ever Med Wear, Ever Film. These products have entered various industrial markets.

B. Long-term business development plans: In order to keep up with market trends, Everesthas invested resources to develop smart medical products for many years. Everest continue thedevelopment of smart wearable products and electric heating products "Everest High-Tech Heated EyeCover". By integrating Everest functional fabrics such as Ge functional fabrics and collagen functionalfabrics, the value of original products will be increased to attract customers. In addition, we continue tocooperate with different industries (such as the Industrial Research Institute) to develop cross-disciplinary integration of Everest functional textiles with smart materials and smart technologies todevelop medical wearable aids and sports technology composite smart wearable systems. We hope tobring the smart health industry into daily life and create a healthy and happy new life.

Everest adheres to the concept of environmental friendliness and cooperates with the international brand sustainable environmental protection policy, combined with the application of high-tech innovative functional textiles, locks in the outdoor, sports, leisure, fashion apparel market and industrial textiles, and continues to create unique and high value-added textiles. Environmentally friendly materials and composite reflective printing have become market trends, guiding the diversification of popular and fashion function markets. Everest's strength is to provide raw materials and functional processing from yarn to garments. Coupled with the innovative integrated design of printing and clothing, it can provide customers with more value-added services. Everest can design fabrics based on customer needs by integrating fabric development and garment innovation, and establish long-term partnership with customers. With Everest's niche environmentally friendly fabrics, developing a series of environmentally friendly clothing has become the best choice of ODM environmentally friendly clothing suppliers for customers.

5.2 Market and Sales Overview

5.2.1 Market Analysis 1. Sales area of main products

Products are mainly exported, including Europe, North America, Japan, South Korea,Hong Kong, Southeast Asia, New Zealand and Australia.

2. Market shareIt has become a strategic partner with international brand customers and has become amajor supplier of internationally renowned brands. Combined with the full value chainservice of fabric to cloth, the market is expanding globally.

3. The market's future situation of supply and demand & future growth

- 83 -

A. Extending the vertical integration of the ecological supply chain bycombining the investments of the United States, Haiti, Ethiopian weavingand garment factories and using the advantages of global operations toexpand external sales.

B. Supply and demand of filament and staple fabrics and garmentsa. For filament fabrics, the high-performance Sports and Outdoor fabrics

are the main force, while the Fashion and knitting product lines areexpanded to give the multiplication effect of the humanities X science.The expansion of environmentally friendly and green products has led tosignificant growth and increased brand awareness.

b. For staple fabrics, the products developed by using the company'sexisting filament technology with staple materials are highlydifferentiated and have won the favor of customers.

c. For garments Combine knitted fabric and woven fabric for garment processing.

Sell knitted fabrics and woven fabrics and supply them to Everest’s garment factories.

The operation mode of garments orders drives the growth of fabrics orders, and effectively developing the entire batch of raw materials to be produced in Everest.

4. Advantages and disadvantages of competitive niche and development prospects &countermeasures

A. Opportunitiesa. The global political and economic situation is turbulent, and the supply

chain sector has moved, it is highlighting the importance of the regionallayout in six countries.

b. The global layout is close to the customer market and the service can bevertically integrated, which can shorten the delivery time and havepreferential tariff services.

c. Smart factory and equipment diversification, fabrics combined withgarments to serve customers in a full range, all the above can providemultiple innovative values.

d. The Thailand factory has a good investment environment and perfectinfrastructure, and provides high value-added products. It is difficult forSoutheast Asian competitors to imitate in the short term.

e. Putting smart automation equipment into garments producing,borrowing skills to produce shifts, and producing high unit priceproducts, giving full play to the advantages of latecomers.

f. The Everest Institute of Technology and the Development andConnection Department combine different areas of knowledge to createnew markets, new businesses, and develop new ecosystem economies.

g. Diversity of machine types, high production capacity of complexproducts, and supply of diversified products.

B. Challengea. Environmental regulations have become stricter and production costs

have increased.b. There is a shortage of multinational talents, and employees' foreign

language skills need to be strengthened.c. The Taiwan factory is facing aging manpower and retirement, and

insufficient labor force affects production capacity.d. In the initial stage of the new plants, the marketing system is still weak

and has not yet reached its profit target.e. With the advent of the IOT era, the security layout of smart enterprises

and factories will be a major challenge.

- 84 -

C. Countermeasuresa. Apply Everest's consistent production mode, expand the market by

combining knitted fabrics and woven fabrics, and combining filamentand staple fabrics with garments.

b. Develop environmentally friendly niche products and establish Everest'sleading position in ecologically innovative products with the circulareconomy.

c. Create manufacturing advantages in the United States and Haiti, andexpand operations in the American market.

d. Combining the knowledge of the same industry and different industriesto develop blue ocean business opportunities through innovation anddiversified composite technologies.

e. Coordinate internal and external resources in the six countries region tomaximize the synergy of the Everest Group.

f. Integration of global orders, efficient and decentralized production,shorten order delivery time and quick delivery.

g. Establish a global AI execution team to accelerate companytransformation.

h. Global talent selection and training, intelligent and innovativemanagement to meet the needs of talents in six countries region.

i. Activate the organization to create business energy.

5.2.2 Production Procedures of Main Products A. Major Products and Their Main Uses

Project Product Category Product Item The main purpose

Textured Yarn

A. Taslan Textured Yarn

1.Air Textured Yarn 1.Pantsuit Skirt pantsSports Home & Furniture

2.Different ShrinkageYarn

2.Dress Pants ShirtsCoats

3.New Synthetic Fiber 3.Dress Pants ShirtsCoats

B. Draw Textured Yarn

1.Micro Fiber 1. Sports Outdoor2.Stretch Yarn 2. Sports Outdoor3.Recycle DrawTextured Yarn

3. Sports Outdoor

C. Texture Yarn

1.Polyester TexturedYarn

1.Deluxe Man & Woman’sSuits

2.Micro Fiber 2.Sports & Casual WearWind Coats Home &Furniture

3.Cationic DyeableTexture Yarn

3.Man & Woman Suits

4.Thick & Thin Yarn 4.Man’s Suit PantsSports Outdoor

5.Interlace TexturedYarn

5.Deluxe Man & WomanSuits Pants SportsOutdoor

6.Lycra Covery Yarn 6.Deluxe Man & WomanSuits Pants SportsOutdoor

7.Functional TexturedYarn

7. Home & Furniture,Industrial Textile

Filament Woven fabric A. New synthetic thick strong

twining fiber

1.Rayon like finish 1.Dress. Blouse. Set2.Silk-like finish 2.Dress. Shirt. Men’s pants.

jacket

- 85 -

Project Product Category Product Item The main purpose 3.Worsted like finish 3.Dress. Men’s pants.

Business suit4.Suiting finish 4.Dress. Shirt. Set

B.Stretch woven

1.Nylon stretchwoven(4-Way stretch)

1.Outdoor Casual

2.Polyester stretchwoven(4-Way stretch)

2.Sports OutdoorCasual

C.Double face woven1.Absorptive finishing 1.Casual Sports2.Waterproof 2.Pants. Coat3.Brushing finishing 3.Pants. Coat

D.Ultra light weight1.Waterproof 1.Casual Sports Coat2.Waterproof.Breathable

2.Outdoor wear

E.Inelastic organization(High fine count waterproofwoven fabric)

1.Waterproof. Glaze 1.Coat. Down jacket2.Absorptive finishing 2.Shorts. Shirt

Staple Piece Dyes fabric

Staple & filament interweaving

1.TR 1.Outdoor & casualShirting & pants

2.T/C 2.Outdoor & casualShirting & pants

3.N/C 3.Outdoor & casualShirting & pants

4.100%CM 4.Outdoor & casualShirting & pants

Dyeing and Finishing fabric

A. New synthetic fabric Same two A Same as left B. Stretch fabric Same two B Same as left C. Micro-fiber fabric Same two C Same as left D. Blended fabric Same two D Same as left E. General fabric Same two E Same as left F. Doeskin Same two D Same as left

Printing fabric Heat transfer printing fabric Printing Polyester

fabric

1. Beach casual wear andsports jacket2. Beach Men's andWomen's Jackets

Coating fabric Special processing fabric

1.Water repellencyand waterproof fabric

1. Casual jacket, sportsjacket, windbreaker

2.Water repellency,Breathable andwaterproof fabric

2. Advanced windbreaker,snow coat, sports jacket

Lamination fabric Special processing fabric Breathable and

waterproof fabric

1. Mountaineering clothing2. Snow clothing, cold-

proof jacket

Yarn dyed fabric

A.Synthetic yarn dyedB.Spun yarn dyedC.yarn dyed stretch fabricD.Staple & filamentinterweaving YDE.Yarn dyed fabric withspecial finish

1.Poplin2.Dobby3.Oxford4.Seer-sucker5.Brushed fabric

Shirting, pajamas, suiting, skirt, casual pants, outerwear, wind jacket, sports wear

Knit Fabric

A.Filament Yarn DyedStretch Fabric seriesB.Nylon 66 Yarn DyedStretch seriesC.Micro Fiber Knit Series

1.Single Jersey Fabric2.Double Knit Fabric 3.Jacquard Fabric4.Brushed Fabric

Man and Women’s shirts Nightclothes Skirt/Pants , Casual pants, Coat, Wind Coat, Sports Wear

Industrial fabric

A. Work fabricB. Industrial materialC. Medical fabric

1.Flame retardantprotective fabric2.Highly visible fabric

1. Industrial protectivesafety clothing2. Industrial filter material

- 86 -

Project Product Category Product Item The main purpose 3.Cold/rain-prooffabric4.PTFEmembrane/yarn5.Special PU film6.Surgical clothing/medical clothing7. Kinesiology tapefabric8. Ward clothing andbedding9. Antibacterial fabric

3. Hot compress clothingand accessories4. Membrane for high-techindustry5. Medical fabrics andclothing6. Health protectionproducts

- 87 -

B. Major Products and Their Production Processes

- 88 -

5.2.3 Supply Status of Main Materials

The main raw materials required by the company for the production of various products are listed as follows according to the use and supply status of the source manufacturers

Major industry

sectors

Main product Main material Supply source

Textured Yarn

factory

A).Interlace Texture Yarn B).Shrinkage Yarn C).High Elastane Fiber D).Ultra microfiber

Oriented yarn POY

HOY POY POY Stretch Yarn Ultra micro POY

Far Eastern New Century Tainan Spinning Chung Shing Nanya Shinkong Formosa Asahi Hyosung

Weaving factory

A).Doeskin B).Pattern high twist imitation wool fabric C).Acetate fabric D).High elastic fabric

E).Shape memory fabric F).Ultra light fabric

G).Outdoor Fabric

EMX UMX SIH EMJ PTW

ACETATE PLUS ODW UHCRPT400 PTT LYCRA+Special Yarn light weight yarn

Nylon Yarn

Self yarn Shinkong or Nan Ya Self Yarn

Self Yarn Self Yarn INVISTASinkong Nan Ya Self Yarn

Self yarn Nan Ya Nan Ya Chung Shing Far Eastern Chainlon Zig Sheng

Dyeing and finishing factory

A).CAMAX finish B).Extremely black finish C).Emboss and Peach

D).Suede

E).Anti-bacteria, Anti-

odor, and Anti-

mosquito finish

F).Bonding

G).Water-repellent

coating

H).New Nylon finish

I).Water repellent, Oil

repellent, and soil

release finish

Polyester fabric Nylon fabric

Self-developed technology

- 89 -

J).YNY finish

K).Printing

L).Light coating

Staple & Yarn dyed factory

A).Yarn dyed plaid B).Stretch fabric C).Staple & filament interweaving D).Solid dyed

Cotton CVC T/C Rayon Modal Rayon Micro Fiber Spandex

TAIYUEN, FAREAST, TAINAN TAINAN, FAREAST, TUNG HO FAREAST EVEREST FORMOSA ASAHI, HYOSUNG

Knit Fabric factory

A).Computer Jacquard Fabric B).Stretch Fabric C).Seamless Garment

Nylon Polyester Dopdyed Spandex Staple Yarn

Everest Textile Far Eastern Fibertech

Zig Sheng

Chainlon

Nanya

Chung Shing

Formosa Asahi Tainan Spinning Hyosung

Far Eastern New Century Acelon Tung Ho Taiyuen The Lycra Company

- 90 -

5.2.4 Major Suppliers and Clients

A. Major Suppliers in the Last Two Calendar YearsUnit: NT$ thousands

Note: The changes in the top four purchasers are mainly caused by the changes in the company's product structure.

B. Major Clients in the Last Two Calendar Years None

5.2.5 Production in the Last Two Years Unit: NT$ thousands

2018 2019 2020 (As of March 31)

Company Name Amount Percent

Relation with

Issuer

Company Name Amount Percent

Relation with

Issuer

Company Name Amount Percent

Relation with

Issuer

1

Chung Shing Textile

Marketing Co., Ltd.

None

Chung Shing Textile

Marketing Co., Ltd.

None

Chung Shing Textile

Marketing Co., Ltd.

None

2 Far Eastern Fibertech Co.,Ltd.

Its subsidiary

is shareholder

of the company

Moreyoung Textile

(Sh)Co.,Ltd.

None Chain

Yarn Co., Ltd.

None

3

Far Eastern New

Century Corp.

Its subsidiary

is shareholder

of the company

Far Eastern Fibertech Co.,Ltd.

Its subsidiary

is shareholder

of the company

Far Eastern

Fibertech Co.,Ltd.

Its subsidiary

is shareholder

of the company

4 Chain Yarn Co., Ltd. None Chain Yarn

Co., Ltd. None

Far Eastern

New Century Corp.

Its subsidiary

is shareholder

of the company

Others Others Others Net Total Supplies

Net Total Supplies

Net Total Supplies

Year Output

Major Products

2019 2018

Capacity Quantity Amount Capacity Quantity Amount

Textured Yarn ( Ton) Fabric ( Thousand yards)

Total

- 91 -

5.2.6 Shipments and Sales in the Last Two Years

Unit: NT$ thousands

5.3 Human Resources

5.4 Environmental Protection Expenditure

5.4.1 Total Losses

Any losses suffered by the company in the most recent fiscal year and up to the annual

report publication date due to environmental pollution incidents (including any

compensation paid and any violations of environmental protection laws or regulations

found in environmental inspection, specifying the disposition dates, disposition

reference numbers, the articles of law violated, and the content of the dispositions):

None

Year

Shipments

& Sales

Major Products

2019 2018

Local Export Local Export

Quantity Amount Quantity Amount Quantity Amount Quantity Amount

Textured Yarn ( Ton) 8,420 568,942 786 95,671 8,751 648,796 863 93,900

Fabric ( Thousand yards) 7,619 556,578 83,220 7,349,912 8,956 645,958 87,264 7,821,995

others 91,156 201,368 96,182 98,548

Total 1,216,676 7,646,951 1,390,936 8,014,443

Year 2018 2019 Data as of ending data

in the current year

Number of

Employees

Company cadres 1,184 279 266

Staff /technician 5,129 6,172 6,842

Total 6,313 6,451 7,108

Average Age 34.6 34.9 35.2

Average Years of Service 5.3 7.9 8.2

Education

Ph.D. 0.3% 0.1% 0.1%

Masters 3.8% 0.2% 0.2%

Bachelor’s Degree 28.5% 28.0% 21.0%

Senior High School 51.7% 52.0% 55.0%

Below Senior High

School 15.7% 19.7% 23.7%

- 92 -

5.4.2 Countermeasures

The Company has taken into consideration any potential risks or violation of environmental and regulations in formulating its environmental management system. The Company also closely monitors developments in the government’s environmental policies and regulations to be able to design precautionary measures. For the pollution and wastes generated in the production process, the Company takes the following measures to protect the environment: Not applicable

5.5 Labor Relations

5.5.1 Employee Welfare

A. The welfare measures and the implementation situation:

Group insurance Year-end bonuses Welfare benefits (marriage Fertility Died

Serious injury and serious accident). The Welfare committee will provide the several

measures like Staff travel, Club activities, Birthday coupon, Shopping discount

program, Children scholarship and welfare subsidy for marriage, funeral, etc.

B. Advanced studies training and the implementation situation:

1. Everest makes human resource management regulations. Through the different

training to strengthen the job skill and professional knowledge, another way to

improve productivity and work quality for all employee.

2. According to the job needs and personal development potential, Everest will select

colleagues to participate in professional training

3. Everest Set up a complete regulatory database on the NOTES system to provide

all employees to browse and search to learning new knowledge and improve the

effectiveness of education

4. 2019, Everest provide 26 external training courses and 480 internal training

courses, Total training hours of 2,336 hours.

C. Retirement system and the implementation situation:

Employee retirement regulation applies to all employees (include the general

manager). Everest contributes the employee worker’s retirement pension reserve, and

follows the rules to handle employee pension payments. The employees who select

- 93 -

the new pension system should contribute retirement pension to labor pension account

every month since July 1, 1994. For the employees select the old pension system,

Everest should contribute labor pension to labor pension account of the old system to

make up the difference of the current year before the end of March every year.

D. The implementation situation about the labor agreement and the protection of

the employee rights:

Everest creates a co-existence relationship with labors as a family. We pay attention to

opinions from every employee. Every labor could feedback any problems through

formal and informal communication channels and it make us to understand each other,

build consensus, and create good performance together.

E. The regulation of work environment and employee safety protection:

1. Everest took place the training courses about earthquake, firefighting and

poisoning disaster in 2019 and by the way to raise the awareness of employees to

escape from safety. There are 653 employees to attend those training courses.

2. Everest set up a professional unit (safety and health management unit) to charge

the occupational safety and health management plan, improve the hazards of safety

and health for all production units, formulate emergency response mechanism and

notification system. Everest could implement safety and health management

regulation to protect the safety and healthy of labor.

3. 2019 Everest provides the training courses about safety and health to improve the

labor’s job ability and consciousness of work hazard. Let’s to achieve the

purpose of employees' health on body, mind and soul. We take place 14 training

courses and 523 participants.

4. When Suppliers and contractors contract of work from Everest, Everest should

actively state the factory construction regulations in the Pre-engineering

agreement meeting to make sure the safety protection measures and the

management of construction process. There are 85 application of construction

safety permit in 108 year.

5. Everest has passed the certification of ISO45001 Occupational Health and Safety

Management Systems and ISO14001 Environmental Management System.

Everest keep going to apply the DNV certification every year. In the future we

will positively promote Safety Management Cleaner Production Pollution

- 94 -

Prevention the saving of energy and resource waste reduction. We through

the continuous improvement of management to reduce the potential hazards from

environment and safety and raise the performance of environmental management

system.

6. Following the labor health protection regulation in 2019, Everest should provides

doctor health diagnostic services in factory every month and the service items

include:

1 Education and training of health guidance

2 Medical services

3 case-care

4 Health assessment and management of new workers Healthy

5 Blood pressure measurement

6 Medical consultation and health education services

7 Health education guidance

8 Set up the healthy resume

9 Select and arrange the employees

10 How many times does the doctor come to factory

11 Healthy courses

12 12 Blood donation

13 Prevention of occupational diseases.

There are 6553 employees to be recorded in the case and by the way to improve

labor’s health.

7. Everest participated in certification of healthy workplace which was held by

Health Promotion Administration, Ministry of Health and Welfare to get the

award of health promotion.

8. Everest check the legal dangerous machinery and equipment in time every year,

include the first pressure vessel Steam boiler LPG storage tank. There are

259 storage tank to be qualified to make sure the operation security for all

dangerous machinery and equipment and comply with laws and regulations.

9. The environment safety unit audit the safety of whole factory include roll clamp,

fallen, fire, electric shock Material fallen, touch with hazardous substances, etc.

We have done 259 improvements to provide the safety environment to all labors.

- 95 -

5.5.2 Labor Disputes

A. Total Losses

Any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to labor disputes (including labor inspection results found in violation of the Labor Standards Act, specifying the disposition dates, disposition reference numbers, the articles of law violated, and the content of the dispositions): None

B. Countermeasures

Until now and in future Everest should estimate amount and plan response measures

for unknown None

5.6 Important Contracts

Agreement Counterparty Period Major Contents Restrictions

Long-term loan contract O-Bank Co., Ltd. 2017.10-2020.10

Medium and long-term credit agreement None

Long-term loan contract

Mega International Commercial Bank

Co., Ltd. 2017.02-2020.02

Medium and long-term credit agreement None

Long-term loan contract

Shin Kong Commercial Bank

Co., Ltd. 2018.07-2021.07

Medium and long-term credit agreement None

Long-term loan contract

Shin Kong Commercial Bank

Co., Ltd. 2019.07-2021.07

Medium and long-term credit agreement None

Long-term loan contract

Yuanta Commercial Bank

Co., Ltd. 2018.11-2020.11

Medium and long-term credit agreement None

Long-term loan contract

Hua Nan Commercial Bank,

Ltd. 2017.04-2020.04

Medium and long-term credit agreement None

Long-term loan contract

The Shanghai Commercial &

Savings Bank, Ltd. 2017.04-2020.04

Medium and long-term credit agreement None

Long-term loan contract KGI Bank 2019.12-2021.12

Medium and long-term credit agreement None

Long-term loan contract

E.SUNCommercial Bank,

Ltd. 2019.10-2021.10

Medium and long-term credit agreement None

Long-term loan contract

Mega International Commercial Bank

Co., Ltd. 2019.09-2024.09

Medium and long-term credit agreement None

Long-term loan contract

Bank SinoPac Co., Ltd. 2019.12-2020.04

Medium and long-term credit agreement None

Long-term loan contract

BANGKOK BANK PUBLIC CO., LTD. 2019.06-2022.06

Medium and long-term credit agreement None

- 96 -

VI. Financial Information

6.1 Five-Year Financial Summary

6.1.1 Condensed Balance Sheet

A. Consolidated Condensed Balance Sheet – Based on IFRS

Unit: NT$ thousands

Year

Item

Financial Summary for The Last Five Years

As of the

printing date of

this annual report

2015 2016 2017 2018 2019

Current assets

Property, Plant and Equipment

Intangible assets

Other assets

Total assets

Current liabilities

Before distribution After distribution

Non-current liabilities

Total liabilities

Before distribution After distribution

Equity attributable to shareholders of the parent

Capital stock

Capital surplus

Retained earnings

Before distribution After distribution

Other equity interest

Treasury stock

- 97 -

Note 1: The surplus distribution plan is determined after the resolution of this (2019) annual

general meeting of shareholders.

Note 2: The financial information of the company on March 31, 2019 was reviewed by

accountants.

Non-controlling interest

Total equity

Before distribution After distribution

- 98 -

6.1.2 Condensed Statement of Comprehensive Income/Condensed Statement of

Income

A. Consolidated Condensed Statement of Comprehensive Income – Based on

IFRS

Note: The financial information of the company on March 31, 2019 was reviewed by

accountants.

Year

Item

Financial Summary for The Last Five

Years

As of the printing date of

this annual report

2015 2016 2017 2018 2019

Operating revenue

Gross profit

Income from operations

Non-operating income

Non-operating expenses

Income before tax

Net income (Loss) Other comprehensive income (income after tax) Total comprehensive income Net income attributable to shareholders of the parent Net income attributable to non-controlling interest Comprehensive income attributable to Shareholders of the parent Comprehensive income attributable to non-controlling interest Earnings per share

- 99 -

Year Accounting Firm CPA Audit Opinion

2015 Deloitte & Touche

Jiz-hen Li & Wang,Yan-Jing

Modified Unqualified Opinion

2016 Deloitte & Touche

Jiz-hen Li & Wang,Yan-Jing

Matter Paragraph Unqualified Opinion

2017 Deloitte & Touche

Jiz-hen Li & Wang,Yan-Jing

Matter Paragraph Unqualified Opinion

2018 Deloitte & Touche

Jiz-hen Li & Li-yuan Guo

Matter Paragraph Unqualified Opinion

2019 Deloitte & Touche

Jiz-hen Li & Li-yuan Guo

Matter Paragraph Unqualified Opinion

6.1.3 Auditors’ Opinions from 2015 to 2019

- 100 -

6.2 Five-Year Financial Analysis

A. Consolidated Financial Analysis – Based on IFRS

Year

Item

Financial Analysis for the Last Five Years

As of the

printing date of this annual report

2015 2016 2017 2018 2019

Financial structure (%)

Debt Ratio Ratio of long-term capital to property, plant and equipment

Solvency (%) Current ratio Quick ratio Interest earned ratio (times)

Operating performance

Accounts receivable turnover (times) Average collection period Inventory turnover (times) Accounts payable turnover (times) Average days in sales Property, plant and equipment turnover (times) Total assets turnover (times)

Profitability

Return on total assets (%) Return on stockholders' equity (%) Pre-tax income to paid-in capital (%) Profit ratio (%) Earnings per share (NT$)

Cash flow

Cash flow ratio (%)

Cash flow adequacy ratio (%)

Cash reinvestment ratio (%)

Leverage Operating leverage

Financial leverage

Analysis of changes in the combined financial ratio increase and decrease ratio of more than 20% in 2019 and 2018: 1. The ratio of long-term funds to real estate, plant and equipment has increased: the long-termborrowing has increased due to overseas expansion2. Decrease in interest protection multiples: the pre-tax net loss incurred by the maindepartment and the increase in interest expenses

- 101 -

6.3 Audit Committee’s Report for the Most Recent Year

6.4 Consolidation Financial Statements for the Years Ended December 31, 2019

and 2018, and Independent Auditors’ Report

Please refer to the Chinese annual report.

6.5 Individual Financial Statements for the Years Ended December 31, 2019 and

2018, and Independent Auditors’ Report

Please refer to the Chinese annual report.

3. Decrease in return on assets: the main department suffered a pre-tax net loss and increasedassets at the end of the period4. Decreased return on equity: net loss before tax incurred by the principal5. Decrease in net profit rate: net loss before tax occurred in the main department6. Earnings per share decreased: the main department suffered a net loss before tax7. Decrease in cash flow ratio: decrease in net cash inflow from main business activities8. The cash flow allowable ratio decreased: the net cash inflow of main business activitiesdecreased, overseas expansion of factory investment, increased capital expenditure9. Cash reinvestment ratio decreased: net cash inflow from main business activities decreased10. Decreased operating leverage: caused by operating losses incurred by the main department11. Decreased financial leverage: The main department incurred business losses and increasedinterest expenses

To: The General Meeting of Shareholders as of year 2020 The board of directors submitted the company's 2019 business report, financial

statements and surplus distribution proposals, of which the financial statements were audited by the accountants of Deloitte & Touche Certified Public Accountants, and an audit report was issued.

The above business report, financial statements and surplus distribution proposal were examined by the Audit Committee and found to be without improper circumstances, and the report was submitted in accordance with the provisions of Article 14-4 of the Securities Exchange Act and Article 219 of the Company Law. Please verify.

Everest Textile Co., Ltd. Independent Director: Yin Chi Chuang March 19, 2020

- 102 -

VII. Review of Financial Conditions, Financial Performance,

and Risk Management

7.1 Analysis of Financial Status

Unit: NT$ thousands

Year

Item 2019 2018

Difference

Amount %

Current Assets

Fixed Assets

Other Assets

Total Assets

Current Liabilities

Long-term Liabilities

Total Liabilities

Capital stock

Capital surplus

Retained Earnings

Other Adjustments

Total Stockholders'

Equity

Note: Analysis and explanation of items with a change of 20% and over 10 million

1. Increase in other assets: the main right-of-use asset recognized by IFRS16.

2. Increase in non-current liabilities: mainly due to the increase in long-term loans

and lease liabilities recognized by IFRS16.

3. Retained Earnings reduction: the main department has a net loss after tax.

- 103 -

7.2 Analysis of Financial Performance

Unit: NT$ thousands

Effect of changes on the company’s future business: The Company’s business

scope has not changed significantly.

Future response actions: Not applicable.

Year

Item 2019 2018

Difference

Amount %

Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Non-operating Income and Gains Non-operating Expenses and Losses Income Before Tax Tax Benefit (Expense) Cumulative Effect of Change in Accounting Principles Analysis of changes in financial ratios: (1) Explanation of change analysis:1. Decrease in operating profit: The main reason is that the new overseas plant is put intooperation and the operating cost is recognized.2. Decrease in non-operating income and expenses: the main department's foreign currencyexchange losses increased.3. Increase in interest expenses: The main department has increased investment financing fornew overseas factories.(2) It is expected that the company will reduce the risks of the enterprise through theglobalization of the Group's global resources to optimize the product supply chain, innovateproduct services and establish a new electronic business resource sharing platform under theChina-US trade war and the COVID-19. At the same time, as overseas factories enter thestage of mass production operation, actively take orders and give full play to scale benefits,future revenues and profits are expected to grow gradually.

- 104 -

7.3 Analysis of Cash Flow

7.3.1 Cash Flow Analysis for the Current Year

Unit: NT$ thousands

7.3.2 Remedy for Cash Deficit and Liquidity Analysis

7.3.3 Cash Flow Analysis for the Coming Year

Cash and Cash Equivalents, Beginning of

Year (1)

Net Cash Flow from Operating Activities

(2)

Cash Outflow

(3)

Cash Surplus (Deficit) (1)+(2)-

(3)

Leverage of Cash Deficit

Investment Plans Financing Plans Not applicable Not applicable

Year Item

2019 2018 Variance (%)

Cash Flow Ratio (%) Cash Flow Adequacy Ratio (%) Cash Reinvestment Ratio (%) Analysis of financial ratio change: Cash flow (cash flow ratio, cash reinvestment ratio) decreased: Mainly due to the decrease in net cash flow from operating activities in 2019.

Estimated Cash and

Cash Equivalents, Beginning

of Year (1)

Estimated Net Cash

Flow from Operating Activities

(2)

Estimated Cash

Outflow (Inflow)

(3)

Cash Surplus (Deficit)

(1)+(2)-(3)

Leverage of Cash Surplus (Deficit)

Investment Plans

Financing Plans

Not applicable Not applicable A. Analysis of change in cash flow in the current year:(1) Business activities: This year's revenue is expected to decline by 16.2% comparedwith 2019, mainly affected by the new coronary pneumonia epidemic.(2) Investment activities: The estimated capital expenditure is approximately NTD80,000, which is mainly related to equipment renewal and maintenance.(3) Financing activities: In order to fully meet the capital needs of the operations ofeach plant, actively maintain sufficient financing quotas, and structure a soundfinancial structure, relatively cheap capital costs and appropriate financing currencyallocation.

- 105 -

7.4 Major Capital Expenditure Items

7.4.1 Major Capital Expenditure Items and Source of Capital

Unit: NT$ thousands

7.4.2 Expected Benefits

A. Estimated Increase in Production, Sales, and Gross Profits

1. New intelligent equipment related to false twisting, weaving, dyeing and

finishing this year to increase productivity and reduce maintenance costs.

2. Continue to invest in energy conservation and improvement to reduce

production costs and increase competitiveness.

B. Other Benefits None.

7.5 Investment Policy in the Last Year, Main Causes for Profits or Losses, Improvement Plans and Investment Plans for the Coming Year

None

Project

Actual or Planned

Source of Capital

Actual or Planned Date of

Completion

Total Capital

Actual or Expected Capital Expenditure

2017 2018 2019 2020

Purchase equipment

Working Capital 2017

Purchase equipment

Working Capital 2018

Purchase equipment

Working Capital 2019

Purchase equipment

Working Capital 2020

- 106 -

7.6 Analysis of Risk Management

7.6.1 Effects of Changes in Interest Rates, Foreign Exchange Rates and Inflation on Corporate Finance, and Future Response Measures

(1) Interest rateFaced with the slowdown in global economic growth and the negative impact of theUS-China trade war on the United States, the Fed will cut interest rates three times in2019, one yard each. In 2020, affected by the new coronary pneumonia epidemic, theFederal Reserve will cut interest rates twice in March for a total of 6 yards, reducingthe federal funding rate target range to 0% to 0.25%. In addition to interest rate cuts,the US government launched an "unrestricted quantitative easing" policy and a $2trillion plan to boost the economy and stabilize the market. My country's governmentbank has also lowered interest rates by 1 yard and the discount rate has reached 1.125%,a record low because of COVID-19's impact on the global economy. And through theoperation of deposit certificates, increase the liquidity of the capital market. In recentyears, domestic funds have been loose and interest rates have been low and stable, butthe international political and economic situation has changed rapidly. The companywill continue to commit to the control of short-term and medium- and long-termfinancing costs, and in order to establish a sound financial structure, moderatelyincrease the proportion of medium- and long-term financing. Create a stable source offunds.

(2) Foreign exchange ratesThe company's revenue is mainly evaluated in U.S. dollars, and the depreciation of theU.S. dollar will cause the risk of exchange loss. The company will take the opportunityto borrow U.S. dollar to offset exchange rate risk arising from U.S. dollar receivableson the balance sheet. In the future, we will continue to observe changes in theinternational financial situation to properly respond, and try to eliminate the largefluctuations in foreign exchange gains and losses that will adversely affect actualoperations.

(3) InflationThe General Statistics Office estimates that my country's average annual consumerprice index (CPI) growth rate in 2020 will be 0.62%, and the growth rate is stillmoderate. The company will continue to implement various measures to reduce overalloperating costs.

- 107 -

7.6.2 Policies, Main Causes of Gain or Loss and Future Response Measures with Respect to High-risk, High-leveraged Investments, Lending or Endorsement Guarantees, and Derivatives Transactions

1. The Company engages in derivative financial commodity transactions mainly inaccordance with the "Procedure for Acquiring or Disposing of Assets". Moreover,hedging strategies are based on the principles of stability and conservatism.2. The company is handled in accordance with the provisions of "OperationProcedures for Fund Loans and Others" and "Operation Procedures for EndorsementGuarantee", and the current targets are 100%-owned subsidiaries. In the future, wewill continue to do a good risk assessment and manage the company's credit risk toavoid adversely affecting the company.

7.6.3 Future Research & Development Projects and Corresponding Budget:

1. Continue to improve the processing technology after dyeing and finishing and the

development of environmentally friendly and non-toxic products.

2. Development of quality materials, combined with intelligent production

management, to reduce the use of pharmaceuticals.

3. Continuing the above-mentioned technological development, expanding the

research field and intensive cultivation of technology and implementing industry

science and technology.

4. In 2019, 3 to 4% of R&D expenses of operating income are expected to be

invested.

7.6.4 Effects of and Response to Changes in Policies and Regulations Relating to

Corporate Finance and Sales: None

7.6.5 Effects of and Response to Changes in Technology and the Industry

Relating to Corporate Finance and Sales: None

7.6.6 The Impact of Changes in Corporate Image on Corporate Risk

Management, and the Company’s Response Measures: None

7.6.7 Expected Benefits from, Risks Relating to and Response to Merger and

Acquisition Plans: None

- 108 -

7.6.8 Expected Benefits from, Risks Relating to and Response to Factory

Expansion Plans: None

7.6.9 Risks Relating to and Response to Excessive Concentration of Purchasing

Sources and Excessive Customer Concentration: None

7.6.10 Effects of, Risks Relating to and Response to Large Share Transfers or

Changes in Shareholdings by Directors, Supervisors, or Shareholders with

Shareholdings of over 10%: None

7.6.11 Effects of, Risks Relating to and Response to the Changes in Management

Rights: None

7.6.12 Litigation or Non-litigation Matters: None

7.6.13 Other Major Risks:

In response to information security risks, the company hires external professionals to

review the relevant operating systems for deficiencies, and the evaluation results show

no major abnormalities.

- 109 -

VIII. Special Disclosure

8.1 Summary of Affiliated Companies 8.1.1Organization Chart

100% 100%

100%

Yue Ding Industry Co., Ltd.

Subsidiaries

0.21%

Everest International Develop Investment Co., Ltd

Everest Textile (HK) Co., Ltd

Everest Investment (Holding) Ltd

Everest Textile (Shanghai) Ltd

Everest Textile (Thailand) Co., Ltd

Everest Textile Co., Ltd

99.3% 100%

99.9%

Everest Apparel (HK) Limited

Everest International (HK) Limited

Everest Apparel

(Haiti) S.A.

Everest Apparel

(Ethiopia) SC

Everest USA Holding, INC

Everest Textile

USA, LLC

Everest Development USA, LLC

100%

100%100%

100%100%

100%

- 110 -

8.1.2 Private Placement Securities in the Most Recent Years: None

8.1.3 Name, date of establishment, address, paid-in capital and main business

items of the affiliated company Unit: NT$ thousands

Name of company Founding Date

Address Paid-in capital

Main business items

Everest Investment (Holding) Ltd

Jul 1997 Clarendon House 2 Church Street Hamilton HM 11 Bermuda

214 Investment industry

Everest International Develop Investment Co., Ltd

Jun 1998 2F, No. 168, Dunhua North Road, Taipei City

1,446,000 Investment industry

Everest Textile (HK) Co., Ltd

Jul 1993 Room 3006, Roche Commercial Centre, 788 Cheung Sha Wan Road, Kowloon, Hong Kong

2,966 Trader

Everest Textile (Thailand) Co., Ltd

Jul 1993 13th Floor, Ploenchit Tower,898,Ploenchit Road Lumpini Pathumwan, Bangkok 10330

701,063 Textile industry

Everest Textile (Shanghai) Ltd

Jul 2006 31st Floor, No. 800 Dongfang Road, Pudong New District, Shanghai, China

980,349 Textile industry

Everest USA Holding, INC

Dec 2016 850 New Burton Road, Suite 201,Dover,Kent Country, DE 19904

964,343 Investment industry

Everest Development USA, LLC

Dec 2016 1331,West Main Street, Forest City, NC 28043

79,170 Investment industry

Everest Textile USA, LLC

Oct 2016 1331,West Main Street, Forest City, NC 28043

885,173 Textile industry

Everest Apparel (HK) Limited

Dec 2016 Unit A,11/F., Lippo Leighton Tower 103-109 Leighton Road Causeway Bay, Hong Kong

685,001 Investment industry

Everest International (HK) Limited

Dec 2016 Unit A,11/F., Lippo Leighton Tower 103-109 Leighton Road Causeway Bay, Hong Kong

964,343 Investment industry

Everest Apparel (Ethiopia) SC

Feb 2016 Hawassa Industrial Park Phase 1+1 Shed #12-13, Hawassa, Ethiopia

411,221 Garment industry

Everest Apparel (Haiti) S.A.

Feb 2016 Parc Industriel de Caracol, Route de Caracol, No. 14, Caracol, Département du Nord-Est, HT 2340, Haïti

273,780 Garment industry

Note: Industries covered by the business of the overall relationship enterprise: The main

business of the overall relationship enterprise is the manufacturing and sales of various

textiles.

8.1.4 Information on directors, supervisors and general managers of related companies.

Unit: shares; % Name of company Job Title Name or Rep. Number of shares

Holding shares Ratio Everest Investment (Holding) Ltd Chairman

Director Director

Everest Textile Co., Ltd Ching Lai Yeh Jian cheng Wang Kao Shan Wu

1,300 100%

Everest International Develop Investment Co., Ltd

Chairman President Director Director Director Ind. Director

Everest Textile Co., Ltd Charles Wang Ching Lai Yeh Wen Kuei Hsiang Hsien Shen Hung Kao Shan Wu Chin Chueh Kao

144,600,000 100%

- 111 -

Everest Textile (HK) Co., Ltd Chairman

Everest Textile Co., Ltd Hui Min Cheng

695,000 5,000

99.30% 0.70%

Everest Textile (Thailand) Co., Ltd Chairman

Director Director Director Director Director Director

Everest Investment (Holding) Ltd Ching Lai Yeh Johnny Hih Jing hai Liang Hsien Shen Hung Kin son Du Kao Shan Wu Wen Kuei Hsiang

79,999,993 1 1 1 1 1 1 1

99.90%

Everest Textile (Shanghai) Ltd Chairman

Director Director Director Director Director Director

Everest Investment (Holding) Ltd Ching Lai Yeh Kin son Du Min zi Chen Kao Shan Wu Wen Kuei Hsiang Ming Yi Hsiao Xian zhong Li

Everest International (HK) Limited Chairman

Director Director Director Director

Everest International Develop Investment Co., Ltd Ching Lai Yeh Jing hai Liang Wen Kuei Hsiang Zhen Ni He Min Ling Ma

31,300,000 100%

Everest USA Holding, INC Chairman

President Director Director Director

Everest International (HK) Limited Ching Lai Yeh Jing hai Liang Wen Kuei Hsiang Ming Yi Hsiao Chin Chueh Kao

1,000 100%

Everest Development USA, LLC

Chairman President Director Director Director

Everest USA Holding, INC Ching Lai Yeh Jing hai Liang Wen Kuei Hsiang Ming Yi Hsiao Chin Chueh Kao

2,500,000 100%

Everest Textile USA, LLC Chairman

President Director Director Director

Everest USA Holding, INC Ching Lai Yeh Jing hai Liang Wen Kuei Hsiang Ming Yi Hsiao Chin Chueh Kao

28,800,000 100%

Everest Apparel (HK) Limited

Chairman Director Director Director Director

Everest International Develop Investment Co., Ltd Ching Lai Yeh Wen Kuei Hsiang Chin Chueh Kao Zhen Ni He Min Ling Ma

22,000,000 100%

Everest Apparel (Ethiopia) SC Chairman

President Director Director Director

Everest Apparel (HK) Limited Ching Lai Yeh Shi hui Chen Wen Kuei Hsiang Chin Chueh Kao Sen Mao Wu

361,953 100%

Everest Apparel (Haiti) S.A. Chairman

President Director

Everest Apparel (HK) Limited Ching Lai Yeh Chin Chueh Kao Wen Kuei Hsiang

4,000 100%

- 112 -

8.1.5 Operational overview of related companies Name Capital Total

Assets Total Liability

Owner Equity

Revenue Operation Income

Net Income

EPS

Everest Investment (Holding) Ltd Everest International Develop Investment Co., Ltd Everest Textile (HK) Co., Ltd Everest Textile (Thailand) Co., Ltd Everest Textile (Shanghai) Ltd Everest International (HK) Limited Everest Apparel (HK) Limited Everest USA Holding, INC Everest Development USA, LLC Everest Textile USA, LLC Everest Apparel (Ethiopia) SC Everest Apparel (Haiti) S.A.

8.1.6 Related companies consolidated financial statements: Not applicable

8.1.7 Relationship report:

Please refer to the Chinese annual report.

8.1.8 Overview of the relationship between subordinate companies and control

companies Parent

Company Control Reason Holding Shares and Pledged

Shares Staff To Serve As

Directors Or Managers Number of

Shares % Pledged

Shares Job Title Name

Yue Ding Industry Co., Ltd.

Appointed personnel are hired as the

company President 1,082,744 0.21% 0 President Ching-Lai

Yeh

8.2 Private Placement Securities in the Most Recent Years: None

- 113 -

8.3

The

Sha

res i

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e C

ompa

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eld

or D

ispo

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Subs

idia

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Cap

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Sour

ce

Hol

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Dat

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Dis

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Ever

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Inte

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stm

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1,44

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rigin

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subs

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100

API

C D

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915,

761

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th

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943,

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647,

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Earn

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ares

- 114 -