External performance evaluation of the board of directors：

At the end of 2022, ATEN commissioned the Taiwan Corporate Governance Association (TCGA), to conduct an external assessment on the performance of the Board of Directors for the period between September 1, 2021 and August 31, 2022. TCGA dispatched two experts to assess the performance of the Board through a questionnaire and on-site inspections covering 20 indicators in 8 aspects including Board composition, leadership, authorization, oversight, communication, self-discipline, as well as internal control and risk management. The TCGA and assigned experts satisfy the criteria for independence and have no business dealings with ATEN. The assessment report was issued on November 9, 2022. The observations and recommendations made by TCGA as well as ATEN’s implementation of improvements are outlined below：

General observations：
A. Under the leadership of your chairperson, your Company has established a sound corporate culture that takes its corporate social responsibility seriously and laid the foundations for corporate sustainability. Board meetings have a relaxed atmosphere and there is close interaction as well as effective communication between Board members and between directors and the management team.
B. Your Company fully respects the opinions of independent directors and make good use of their expertise. The independent directors are also willing to perform their duty. They actively participate in important company matters such as key strategies, product positioning and risk control during Board meetings and the functional committees, and make a positive contribution.
C. The chief governance officer of your Company actively assisted the directors with the performance of their duties. In addition to updating directors on the Company’s current organization and overseas locations, new directors were also provided with a detailed introduction to manufacturing and product information. Information is volunteered to directors if they need a better understanding of certain topics during meetings.
D. Your Company’s chief auditor is familiar with company operations and the auditing department is fully staffed. The auditing plan and its implementation include clearly defined levels of risk. Internal audits are characterized by thorough preparation as well as exceeding the mandatory compliance requirements in spirit and practice, and should therefore be applauded.
E. Your Company values employee contributions to the company. Good benefits and long-term retention created a positive feedback cycle for your Company’s recruitment needs. Particularly high importance was assigned by your Company to the cultivation of talent and succession planning. The cultivation of successors has become an important KPI for managers at all levels. Your practice of encouraging internal start-ups also provide opportunities for the cultivation of executive talent.

Recommendations：
A. The diversity and independence of the Board of Directors is now increasingly emphasized in international corporate governance trends. Your Company should consider increasing the diversity of the next Board of Directors even more as the Company continues to develop.
B. Your Company has accumulated many years of practical experience in risk management. Each department also has appropriate risk assessment and response measures in place with overall oversight provided by the President’s Office. We do recommend establishing a dedicated risk management organization under the Board of Directors or at the management level. Such an organization should engage with the Board of Directors to help your Company respond to a volatile industry and business environment.
C. Your Company’s internal auditing operations are sound and your corporate culture takes internal audits seriously. As the Company has already established the Audit Committee, we recommend taking the opinion of Audit Committee members into account during evaluations of the chief auditor to further strengthen link between internal audits and the Audit Committee.

Implementation status of improvements：
A. To strengthen corporate governance, the Board of Directors is expected to increase the number of independent directors from 3 to 4. Women currently account for 10% (1 place) of the Board membership and the number of female directorships will be increased to 2.
B. A Sustainability Committee was established in 2022 to assist the Board with risk management operations and the formulation of risk management policy. The Sustainability Committee also briefs the Board on the implementation of risk management every year.
C. All members of the Company’s Audit Committee are also members of the Compensation Committee. The evaluation the chief auditor as well as the assessment/determination of compensation is already incorporated into the agenda of the Compensation Committee. The Board takes the opinions of the Compensation Committee members into account when deciding on the evaluation results and compensation.