Shieh Yih has formulated its business policies based on integrity, in compliance with the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and other relevant laws and regulations, which were approved and implemented by the Board. The Company has established a sound corporate governance and risk control system and is committed to fostering a business environment conducive to sustainable development.

The core values of Shieh Yih Machinery are integrity, accountability, service, and innovation. In particular, “integrity” is defined as a proactive and positive attitude and philosophy of life, with an emphasis on compliance with ethical standards. To strengthen the culture of integrity, it has been incorporated into performance evaluation indicators, with supervisors regularly communicating and reinforcing this value among employees. At the same time, a comprehensive reward and disciplinary mechanism has been established to ensure the full implementation of integrity in corporate management.

▋Policy and Implementation

To foster a culture of integrity and enhance employees’ ethical awareness, Shieh Yih has established the “Code of Ethical Conduct”, which clearly defines the standards of ethical behavior required of all employees. This Code reinforces the Company’s image of integrity and sound management while actively promoting our core values. It also serves as an important foundation for the ethical corporate management policy, setting forth the rules of conduct that all employees must follow to prevent improper management, fraudulent transactions, bribery, kickbacks, and other unethical practices. In addition, the Code provides behavioral guidelines to strengthen employees’ ethical awareness and professional integrity. Key provisions include:

• Maintain honesty and ethical conduct
• Prevent conflicts of interest
• Prohibit abuse of authority for personal gain
• Protect confidentiality of trade secrets and data
• Uphold the principles of fair trade
• Comply with relevant laws, regulations, and internal company rules

▋Implementation Achievements of Integrity Education and Training

• All current employees have signed the Letter of Employment, the “Integrity Declaration,” and the “Confidentiality and Intellectual Property Agreement.” For 25 new employees in 2024, briefing and orientation were provided upon onboarding, and they also completed the signing of these two documents.
• New employee training is conducted annually, with the “Company Profile” course placing special emphasis on the core value of integrity. In 2024, 25 employees participated in the training.
• The Company provides training for Directors at least once a year on the prevention of insider trading and compliance with relevant laws and regulations.
• ESG awareness, including compliance with ethical corporate management regulations, is promoted during monthly meetings, with a total of 350 employees attending in 2024.

▋Whistleblowing Mechanism

The Company has established a comprehensive whistleblowing mechanism and communication channels in accordance with the “Code of Ethical Conduct”. Specific practices include:

1. An internal whistleblowing system is in place, with a dedicated independent e-mail address and hotline announced for both internal and external parties. Reports of violations of ethical corporate management may be made verbally, by e-mail, or in writing. Contact information is as follows:
   
   Whistleblowing e-mail: wecare@seyi.com
   Hotline: 03-3525466#3260
   
   
2. Relevant supervisors are responsible for maintaining the confidentiality of whistleblowers’ identities and information, ensuring they are protected from retaliation, threats, or undue pressure, with necessary protective measures provided.
3. The Company encourages all employees to proactively report any violations of laws, regulations, or ethical standards to the designated unit and ensures whistleblowers are protected from adverse consequences.