In accordance with Item 3 of Article 23 of the Company's Principles of Corporate Governance Practices, the composition of the Board of Directors should generally possess the knowledge, skills and qualities necessary for the performance of its duties. In order to achieve the desired objectives of corporate governance, the Board of Directors as a whole should possess the following competencies:

1.Operational judgment ability.

2.Accounting and financial analysis capabilities.

3.Operational management capacity.

4.Crisis management capacity.

5.Industry knowledge.

6.International Market View.

7.Leadership

8.Decision-making ability.

The company amended Item 2 of Article 23 of Principles of Corporate Governance Practices on March, 2020. The organization of the Board of Directors should consider of operation, business model and development of the company to formulate diversity policy.

The company has 9 directors, 3 independent directors included (accounted for 33.33% of the directors, and one female independent director accounted for 11.11% of the directors). One independent director is qualified as CPA, the other two possess operational management capacity, and other directors possess industry experience for many years. Thus, they can effectively implement the functions and powers of the board of directors and safeguard the relevant rights and interests of shareholders.

The company considers competencies of directors important. Each competency should be possessed by at least two directors to achieve board diversity policy, and the company totally fulfills the policy at present. The tenure of independent directors shouldn’t be over nine years, and three independent directors of the company fulfill the regulation.