Formosa Laboratories passed a resolution at the board meeting in March 2022 to fully re-elect 8 directors (including 3 Independent Directors) at the shareholders' meeting in 2022. The nomination of Dr. Cheng, Chen-Yu and 7 other directors (including 3 Independent Directors) was reviewed and approved, and their diversity, independence, educational and professional backgrounds, industry experience, and relevant skills related to organizational impact all comply with the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies", Article 192 of the "Company Act,"the"Articles of Incorporation"and the"Procedures for Election of Directors". The candidate nomination system is adopted, and Chen, Yi-Fen, Lu, Ta- Jung, and Chang, Ting-Jung are included in the Company's list of independent director candidates for 2022, which was announced on the Public Information Observation Station and submitted for election at the shareholders' meeting in June 2022.

Formosa Laboratories elected 8 directors (including 3 Independent Directors) at the shareholders' meeting in June 2022 and held a board meeting. All the elected directors unanimously recommended Dr. Cheng, Chen-Yu to serve as the Chairman of Formosa Laboratories. Dr. Cheng, Chen-Yu holds a Ph.D. in Medicinal Chemistry from the University of California, San Francisco. He has previously served as a professor in the Department of Pharmacy at National Taiwan University, a researcher at DuPont Chemical Company, and a postdoctoral researcher in the Department of Chemistry at MIT. During his tenure as Chairman and President of Formosa Laboratories, Dr.Cheng, Chen-Yu has accumulated professional capabilities and extensive experience in operational judgment, management, leadership decision-making, and crisis handling. He has provided professional and comprehensive guidance on the Company's operational management and investment decisionmaking, significantly benefiting the operational management of Formosa Laboratories. Therefore, he will continue to serve as Chairman.

To implement the diversification of the Board of Directors and formulate appropriate diversification policies for its own operations, operational models, and development needs, the following two aspects are considered: first, basic conditions and values such as gender, age, nationality, and culture; second, professional backgrounds, knowledge, skills, and experience in law, accounting, industry, finance, marketing, or technology. In addition, to achieve the ideal goal of corporate governance, the Board of Directors of the Company as a whole should possess eight abilities, including operational judgment, accounting and financial analysis, management, crisis handling, industry knowledge, international market perspective, leadership, and decision-making. The Formosa Laboratories Board of Directors should meet basic requirements and values, possess professional knowledge and skills, demonstrate diversity, and strive for gender equality. Formosa Laboratories also continues to arrange diverse training courses for board members to continuously enrich their knowledge for decision-making. For more information on the core competency indicators of the Board of Directors and its committees, please refer to the Company's annual report (2022 Annual Report).

With a view to keeping abreast of global trends in business management, Formosa Laboratories has put in place a continuing education and training mechanism for directors, where arrangements are made for directors to attend training courses on an annual basis to enhance the governance knowledge and skills required by the board members. In addition, we send out announcements of relevant laws and regulations from the competent authorities from time to time so that independent directors are able to keep track of information related to Formosa Laboratories at all times. We also continue to step up dissemination of information and education programs based on each director’s needs ad feedback. In 2023, the Board of Directors underwent 66 hours of training in total, including 60 hours of governancerelated courses and 6 hours of finance and accounting-related courses, which translates into an average of 7.3 hours of training per person. Please refer to Formosa Laboratories’ annual report for more details on the status of continuing education and training for directors.

In an effort to enhance the efficiency of board operation, Formosa Laboratories has established the Rules for Performance Evaluation of Board of Directors, where self-assessments shall be conducted on the Board of Directors, individual board members, and the functional committees on an annual basis. Specifically, the indicators for the performance evaluation of the Board of Directors encompass five areas, including “participation in the operation of the company,” “improvement of the quality of the Board of Directors’ decision-making,” “composition and structure of the Board of Directors,” “election of directors and continuing education and training for directors,” and “internal control.” The Audit Committee and the Remuneration Committee also review and make recommendations on the remuneration standards and the exact amount of remuneration to be allocated based on the evaluation results.

According to the results of self-assessments of the Board of Directors and functional committees for 2023, the Board of Directors had fulfilled its responsibilities of guiding and supervising the operations of our company, while the operation of the Board of Directors was sound on the whole. Moreover, Formosa Laboratories engages the Taiwan Investor Relations Institute, a professional and independent organization, to conduct an external evaluation of the performance of the Board of Directors at Formosa Laboratories every three years. The most recent external evaluation was conducted in 2023, where the Board of Directors have either made improvements in response to the recommendations proposed in the conclusions of the evaluation report or included the recommendations in its schedule to ensure that the Board of Directors comply with the governance requirements at Formosa Laboratories. The evaluation report, which is available on Formosa Laboratories’ official website, has been submitted to the Board of Directors in the first quarter of 2024.