Promoting Ethical Corporate Managemen

1. Supervisor for Ethical Corporate Management

To implement sound Ethical Corporate Management (ECM), the HR Department has been assigned the responsibility of establishing and supervising the ECM policies and prevention programs, and reports to the Board of Directors on an annual basis.

2. Main Responsibilities

The primary responsibilities of the ECM supervisor are to:

  • Assist other departments in integrating ethical and moral values into the company’s business strategy and formulating ECM-related prevention measures and a system of checks and balances in line with existing laws and regulations.
  • Plan ECM-related prevention programs that include relevant standard operating procedures and behavior guidelines.
  • Supervise and assist in optimizing the internal organization, structure and management of each department, and set up a system of mutual checks and balances to target activities with higher ECM risk factors inside the parameters of the company’s operations.
  • Promote and coordinate ECM policies and training.
  • Establish a reporting system and monitor the effectiveness of its implementation.
  • Coordinate with the Board of Directors in supervising senior management’s review and assessment of whether the implemented ECM-related prevention measures are operating effectively, and periodically perform evaluation on the progress and compliance of relevant business processes.

3. Access to Ethical Corporate Management Grievance System：

  • Complaints e-mail：yfy.integrity@yfy.com
  • Complaints Phone：+886-2-2396-8020 ext.1395
  • Complaints Fax：+886-2-2322-7809
  • Complaints Letter: Please send it to Human Resources Dept., YFY Inc.

4. Promote Effectiveness

4.1. Regularly hold seminars related to ethical corporate management
The Legal Department and external lecturers jointly conduct seminars on topics such as "Prohibition of Receiving Improper Benefits," "Recusal Due to Conflict of Interest," and "Prohibition of Insider Trading" every year, which are mandatory for all employees. New employees are required to complete the digital course "Procedures for Ethical Management and Guidelines for Conduct" during the probation period. Through these seminars, we promote proper concepts, actively implement the value of honesty and integrity, strengthen corporate governance and risk control, and deeply plant the corporate culture of integrity in the core of our organization.
In 2024, the Company conducted ethical management seminars, including "Procedures for Ethical Management and Guidelines for Conduct" and "2024 Ethical Management Awareness," covering topics such as avoiding the conveyance of unjust interests and prohibiting insider trading. A total of 262 participants attended these seminars, accumulating 248 hours of training. No violation of ethical conducts occurred within the Company in 2024.

4.2. Formulation of "Procedures for Prevention of Insider Trading"
The Company's Board of Directors has adopted a resolution requiring employees involved in projects containing confidential information with the potential to materially affect the Company's stock price to sign a "Letter of Commitment to Prevent Insider Trading" or a "Non-Disclosure Agreement."
The Legal Department ensures that directors and managers are reminded of the prohibition against insider trading as stipulated in Article 157-1 of the Securities and Exchange Act when discussing significant matters or proposals that could impact the Company's stock price.
Furthermore, the Legal Department conducts periodic seminars, specifically addressing the theme of "Insider Trading Prevention Procedures," to reinforce awareness among employees. These seminars emphasize the prohibition against trading the Company's shares based on material nonpublic information that could influence the stock price.

5. Insider Trading Prevention

The Board of Directors has adopted a resolution titled "Procedures for the Prevention of Insider Trading," mandating that all employees involved in projects containing confidential information with potential material impacts on share prices must execute a "Prevention of Insider Trading Letter of Undertaking" and a "Non-Disclosure Agreement."
For Board meetings addressing significant issues or proposals that could influence the company’s share price, the Legal Department is responsible for reminding directors and managers in attendance of the prohibitions against insider trading outlined in Article 157-1 of the Securities and Exchange Act.
Additionally, the Legal Department provides a quarterly presentation to the Board of Directors, which includes the "Common Violations in Insider Share Transfers" memorandum issued by the Taiwan Stock Exchange Corporation.