Formosa Laboratories strictly complies with the high-level controls and regulations imposed by the competent authorities on the pharmaceutical industry, be it in the areas of procurement and supply, sales, labor management and welfare, environmental protection, or corporate governance, where each department stays on top of and keeps updated with changes in laws and regulations at all times. Aside from establishing the Legal and Strategy Planning Department to provide immediate legal assistance and consultation to all departments, Formosa Laboratories also organizes training, and awareness programs on various laws and regulations from time to time. In 2023, no major violations of laws and regulations were reported at Formosa LaboratoriesNote 1. The administrative penalties imposed on Formosa Laboratories involved minor violations of various laws and regulations, such as the Fire Services Act, environmental laws and regulations, the Occupational Safety and Health Act, and the Labor Standards Act, or minor deficiencies committed in violation of these laws and regulations. Specifically, Formosa Laboratories received five penalties amounting to a total fine of NT$332,000, where improvements have been made or are currently in progress in response to all the deficiencies committed by our company.

Note:Any single incident or the same incident for which a cumulative amount of fine totaling of NT$1 million or more, or any incident that seriously affects the operations of Formosa Laboratories shall be disclosed in our company’s sustainability report.