InvestmentINVESTMENT

I.If the operations of the Board of Directors meets any of the following circumstances, the meeting date, term, contents of proposals, opinions of all independent directors and the Company’s handling of said opinions shall be specified:

(I) Matters specified in Article 14-3 of the Securities and Exchange Act:

The Company held 6 Board meetings in 2022 and the resolutions are specified in Page 81-85 of the annual report. Matters specified in Article 14-3 of the Securities and Exchange Act were approved unanimously by all independent directors.

(II) Any other resolution(s) passed but with independent directors voicing opposing or qualified opinions on the record or in writing:None.

II.Directors’ avoidance of proposals involving any conflict of interest; the names of directors, details of the proposals, causes of recusal, and participation in voting shall be disclosed:

(I) 1st meeting of the 18th Board of Directors on June 24, 2022:

1.During the discussion on the appointment of members of the Remuneration Committee, the independent directors Yung-Fu Tseng, Yung-Chien Wu, and Wei-Lung Chen recused themselves and did not participate in the discussion and voting on the proposal due to involvement of their personal interests.

2. During the discussion of the new appointment of Kuan-Hao Chen by the Company, the director Ching-Jen Chen, a lineal relative of Kuan-Hao Chen, recused himself and did not participate in the discussion and voting on the proposal due to involvement of his personal interests.

(II) 3rd meeting of the 18th Board of Directors on November 10, 2022: During the review of the proposal for purchasing the shares of IBF Financial Holdings Co., Ltd., independent director Wei-Lung Chen, who served as a director of IBF, and director Kuan-Chou Chen, who was a director of IBF, recused themselves and did not participate in the discussion and voting on the proposal due to involvement of their personal interests.

(III) 4th meeting of the 18th Board of Directors on January 10, 2023:

1.During the review of the proposal to renew the appointment of the Company’s advisor, independent director Yung-Fu Tseng, the father of Chi-Ying Tseng, Chairman Kuan-Han Chen, the brother of Kuan-Ju Chen, and the director Ching-Jen Chen, the brother of Ching-Tan Chen and Ching-Yao Chen, recused themselves and did not participate in the discussion and voting on the proposal due to involvement of their personal interests.

2. During the review of changes in the senior management of the Company, director Ching-Jen Chen, a lineal relative of Vice President Kuan-Hua Chen and Chief Director Hsuan-Hui Chen, recused himself and did not participate in the discussion and voting on the proposal due to involvement of his personal interests.

(IV) 5th meeting of the 18th Board of Directors on March 13, 2023: During the review of the proposal to renew the appointment of Ching-Liang Chen as an advisor, director Ching-Jen Chen, the brother of Ching-Liang Chen, recused himself and did not participate in the discussion and voting on the proposal due to involvement of his personal interests.

III.TWSE/TPEx listed companies shall disclose information including the cycle, period, scope, method and items of the self-evaluation (or peer review) for the Board of Directors and specify the implementation of the evaluation for the broad of directors:

(I) According to the Rules for Performance Evaluation of Board Directors of the Company, an annual internal performance evaluation for the Board of Directs is conducted every year and the evaluation result is submitted to the Board of Directors before Q1 of the following year. The cycle, period, scope, method, items and results related to the evaluation in 2022 is as follows:

1.The cycle, period, scope, method, and items of evaluation:

2.The evaluation is conducted in the form of internal questionnaires based on the operation of the Board of Directors and self-participation evaluated by the director. The secretariat of the Board will then collect and summarize the statistic results and then submit them to the Board of Directors.

3.The 2022 evaluation of the performance of the Board of Directors and its members was completed in February 2022. The result indicated an average score of 97.78 for the internal self-evaluation of the Board of Directors and an average score of 98.47 for the internal self-evaluation of individual directors, both of which were “Excellent”. The directors strongly agreed that the evaluation indicators met the requirements of corporate governance, as well as effectively strengthened the functions of the Board of Directors and maintained shareholders’ interests. The result was submitted in a report to the 5th meeting of the 18th Board of Directors on March 13, 2023, and was acknowledged by the Board of Directors.

4.The Company fully discloses the Rules for Performance Evaluation of Board Directors and the Board’s and Board members’ evaluation results on the Market Observation Post System, in the Company’s annual report and on the Company’s website.

(I)The Company has established the Audit Committee, composed of three independent directors, to enhance the corporate governance of the Company and the functions of the Board of Directors.

(II)In 2022 and as of the date of publication of the annual report, proposals which shall be submitted to the Audit Committee for approval and to the Board of Directors for resolution according to the Company Act and the matters set forth under Articles 14-3 and 14-5 of the Securities and Exchange Act were approved by the Audit Committee, submitted to and approved by resolutions of the Board of Directors, and implemented pursuant to the resolutions.

(III)The Company has appointed a chief corporate governance officer in charge of matters related to corporate governance, such as assisting directors in legal compliance.

(IV)At the 18th to 20th meetings of the 17th Board of Directors and the 2nd to 3rd meetings of the 18th Board of Directors dated January 18, March 25, May 9, August 8, and November 10, 2022, regular reports were given by the President, the COO, the chief auditor, and relevant managers to the Board of Directors regarding the operations of the Company and the implementation of the business, financial, and internal audit plans.

(V)Proposals for establishment and amendment of regulations:

1. 18th meeting of the 17th Board of Directors on January 18, 2022:
A resolution approving amendments to the “Corporate Governance Best Practice Principles” and the “Corporate Social Responsibility Best Practice Principles”.

2. 19th meeting of the 17th Board of Directors on March 25, 2022:
The amendments to the “Articles of Incorporation” and the “Procedures for Acquisition or Disposal of Assets” were approved by the Audit Committee without change and submitted to the Board of Directors for approval by resolution. They were then reviewed and approved by the 2022 annual shareholders’ meeting.

3. 20th meeting of the 17th Board of Directors on May 9, 2022:
Approval of the Company’s GHG inventory and verification schedule plan.

4. 3rd meeting of the 18th Board of Directors on November 10, 2022:
Resolutions approving the establishment of the “Procedures for the Preparation and Certification of Sustainability Reports” and amendments to the “Rules of Procedure for the Board of Directors” and the “Procedures for the Management of Material Insider Information”.

5. 5th meeting of the 18th Board of Directors on March 13, 2023:
Approval of the GHG inventory and verification schedule plan of the Company’s subsidiary and amendments to the “Rules of Procedure for Shareholders’ Meetings”, the “Corporate Governance Best Practice Principles”, and the “Standard Operating Procedures for Handling Requests from Directors”.

(VI)The status of implementation and results of evaluation of the performance of the Board of Directors in 2021 were acknowledged by the 19th meeting of the 17th Board of Directors on March 25, 2022. The status of implementation and results of evaluation of the performance of the Board of Directors in 2022 were acknowledged by the 5th meeting of the 18th Board of Directors on March 13, 2023.

(VII) The chief corporate governance officer handles requests from directors in accordance with the “Standard Operating Procedures for Handling Requests from Directors”.

(VIII)The Company forwards relevant laws and regulations or information on continuing education to directors on a regular or intermittent basis to enhance the understanding of the laws.

(IX)Besides conducting regular self-examination by the Company on the operation of the Board of Directors to enhance the board functions, internal auditors also prepare audit reports concerning the operation of the Board of Directors to comply with the regulations of the competent authority for securities.

I.If the operations of the Audit Committee meets any of the following circumstances, the meeting date of the Board of Directors, term, contents of proposals, resolutions of the Audit Committee and the Company’s handling of said opinions shall be specified.

(I) Matters specified in Article 14-5 of the Securities and Exchange Act:

In 2022, the Audit Committee of the Company held 5 meetings and the resolutions are specified in Page 45-46 of the annual report. Matters specified in Article 14-5 of the Securities and Exchange Act were approved unanimously by the Audit Committee.

(II)Other than those described above, any resolutions unapproved by the Audit Committee but passed by more than two-thirds of directors: None.

II. Independent directors’ avoidance of proposals involving any conflict of interest; the names of independent directors, details of the proposals, causes of recusal, and participation in voting shall be disclosed:

2nd Audit Committee, 2nd meeting on November 10, 2022 During the review of the proposal for purchasing the shares of IBF Financial Holdings Co., Ltd., the director Kuan-Chou Chen and the independent director Wei-Lung Chen recused themselves and did not participate in the discussion and voting on the proposal due to involvement of their personal interests.

III. Communication between independent directors, internal audit officer and CPAs (e.g. the major matters, methods and results of communication with regard to the financial and business statuses of the Company):

(I)The audit report and information of follow-ups on the audit report are submitted to members of the Committee for review at least once each month.

(II)The chief auditor attends meetings of the Audit Committee in a non-voting capacity, and communicates with independent directors through the Audit Committee.

(III)In case of instructions or questions by the Audit Committee after reviewing the audit report, it will notify the chief auditor.

(IV)CPAs also communicate with the Audit Committee periodically, such as reporting on the phases of the annual plan and a report on the completion of their audits.

(V)The Company invites CPAs to attend meetings of the Audit Committee in a non-voting capacity to communicate with and report to independent directors regarding the results of audits or reviews of the financial statements, or the effect of the promulgation of other laws on the Company. The communication between independent directors and CPAs has been good.

(VI)The Audit Committee may communicate with the chief internal auditor and CPAs via various reports or channels, e.g. virtual meeting, telephone, e-mail, Line, and fax, so as to verify the Company’s business and financial overview, and status of the audit practices.

1.The report for the progress of the legal proceedings regarding the Company’ subsidiary, Shandong AGV Food Technology Co., Ltd.

2.Report on the implementation status of internal audit plan.

3.Review on the proposal for the call of the common shares of the subsidiary, “ Sontenkan Resort Development Co., Ltd.,” by cash capital increase.

1.Report on the implementation status of internal audit plan.

2.Communication between CPAs and governance unit.

3.Review on the proposal for 2021 financial statements (including the consolidated financial statements).

4.Review on the proposal for 2021 appropriation of earnings.

5.Review on the proposal for amendments to the “Procedure for Acquisition or Disposal of Assets”

6.Discussion on the proposal for “Effectiveness Evaluation of the Company’s Internal Control System” and “Statement on Internal Control System” in 2021.

7.Review on the proposal for the commission and independence evaluation of CPAs.

1.The 2022 Q1 consolidated financial statements audited by the CPAs.

2.Report on the implementation status of internal audit plan.

3.Report on private placement of common stocks for cash capital increase for 2021.

4.Review on the proposal for common stock issued in private placement for cash capital increase.

1.The 2022 Q2 consolidated financial statements audited by the CPAs.

2.Report on the implementation status of internal audit plan.

3.Resolution to fully abandon the cash capital increase plan of subsidiary Koya Biotech Corp. was deliberated.

4.Review on the proposal for provision of endorsement and guarantee for the financing of subsidiary, “Sontenkan Resort Development Co., Ltd.”

1.The 2022 Q3 consolidated financial statements audited by the CPAs.

2.Endorsement and guarantee improvement plan and implementation status for Koya Biotech Corp.

3.Report on the implementation status of internal audit plan.

4.Review on the proposal for the “2022 Audit Plan.”

5.Review on participate in the subscription of the common shares of IBF Financial Holdings Co., Ltd.

6.Review on the proposal for the call of the common shares of the subsidiary, “ Sontenkan Resort Development Co., Ltd.,” by cash capital increase.

1. Not an employee of the Company or any of the affiliates

2. Not a director or supervisor of the Company or any of the affiliates

3. Not a natural-person shareholder holding 1% or more of the total shares issued by the Company, together with the person’s spouse, minor children or under others’ names or ranking in the top 10 in shareholdings.

4. Not a spouse, relative of second degree, or direct kin of third degree or closer to persons described in the three preceding subparagraphs.

5. Not a director, supervisor, or employee holding 5% or more of the total number of shares issued by the Company, ranking among the top 5 in shareholdings or being the director, supervisor or employee of corporate shareholders who designate their representatives as the Company’s directors or supervisors in accordance with Paragraph 1 or 2, Article 27 of the Company Act

6. Not a director, supervisor or employee of another company in which the number of directors or more than half of the voting shares is under the control of the same person

7. Not a director, supervisor or employee of another company or institution in which the Chairman, President or personnel with equivalent position are the same person or have spouse relationship

8. Is neither a director, supervisor, manager, nor a shareholder holding more than 5% of the outstanding shares, of a certain company or organization that has a financial or business relationship with the Company.

9. Not a professional who provides audits or commercial, legal, financial, accounting or consulting services accumulating more than NTD 500,000 of remuneration obtained in recent two years to the Company or its affiliates nor is an owner, partner, director (managing director), supervisor, or manager or the spouse of any of the above, of a sole proprietorship, partnership, company, or organization that provides such services to the Company or its affiliates.

10. Not the spouse or a relative within the second degree of kinship of any other directors

Actual attendance rate (%)

Other items to be stated:

I. In the event where the Remuneration Committee’s proposal is rejected or amended by the Board of Directors, please describe the date and session of the meeting, details of the proposal, the board’s resolution, and how the Company handles the Remuneration Committee’s opinions (if the remuneration approved by the Board of Directors was more favorable than the one proposed by the Remuneration Committee, the differences and reasons shall be specified): None.

II. For resolution(s) made by the remuneration committee with the committee members voicing opposing or qualified opinions on the record or in writing, please state the meeting date, term, contents of motion, opinions of all members and the company’s handling of the said opinions: None.

The Company’s response to Remuneration Committee’s opinions

111.1.18

6th meeting of 4th Committee

111.3.25

7th meeting of 4th Committee

111.6.23

8th meeting of 4th Committee

I. Has the Company established a governance framework to promote sustainable development? Has the Company established a specialized (or designated an existing) department to promote sustainable development, which the senior management is authorized by the Board of Directors to manage under the supervision of the Board of Directors?

((A TWSE/TPEx listed company must indicate the status of implementation, not compliance or explanation).)

In compliance with the Best Practice Principles.

II. Does the Company implement the risk assessment of environmental, social, and corporate governance issues related to corporate operation and establish relevant risk management policies or strategies based on the principle of materiality?

((A TWSE/TPEx listed company must indicate the status of implementation, not compliance or explanation).)

Most of the Company’s subsidiaries are engaged in sales business. Therefore, in consideration of the relevance to operations and impact posed to major issues, the related risk assessment is primarily conducted on the Company. (Exclusive of subsidiaries).

The Company implements the risk assessment of environmental, social, and corporate governance issues based on the principle of materiality and established the Security Center in the organization with relevant risk management policies to reduce or prevent possible damage to the Company. The Company can also handle the risk collectively and immediately take necessary preventive action to strengthen the emergency response capacity of the enterprise and maintain sustainable operation of the Company.

1. Environmental issues:

(1) Besides continuing to increase the production technology, the Company also adopts the 3R environmental principles of “reduce”, “recycle”, and “reuse”. Setting 2021 as the base period, the Company aims to reduce the amount of waste by 1~3% each year to effectively mitigate environmental damage and pollution, and expects to cut the total waste by 10% by 2025.

(2) Evaluation of the efficiency of water use has always been the focus of improvement for water conservation. We have been promoting the idea of water conservation in various ways such as posters and slogans, in order to integrate such ideas with every aspect of office life. Discharged water which has been treated through filtration has been recovered to sludge dehydrators for the cleaning of cloth filters, saving approximately 25,902 tonnes in 2022. The cleaner wastewater discharged from soft water regenerated has been stored and pressurized and then made available to the roads and toilets at our factories for flushing and irrigation, saving approximately 11,066 tonnes of water in 2022.

(3) In 2022, the total production of goods in was 2.1% higher than that in 2021, and the power consumed by manufacturing processes decreased by 2.6%. Our active promotion of energy conservation has achieved certain results. The Company will continue to replace old equipment with energy-efficient equipment to reduce energy consumption and improve the performance of equipment.

(4) The Company expects to implement the ISO 50001 energy management system in 2025 to help itself verify GHG emissions, and will find the room for reduction of emissions and formulate the corresponding emissions reduction programs.

(5) The Company has put efforts into energy conservation and carbon reduction and developed an environmental improvement management plan under the P-D-C-A management model. We establish indexes for items related to power and water consumption, waste water production, waste production, and productivity density during the process with monitoring and control at all times.

2. Social issues:

(1) The Company adopts a human rights-based labor policy in accordance with the Ethical Trading Initiative (ETI).

(2) The Company continues to implement and improve the “ISO 45001 Occupational Safety and Health Management System”, and maintain the system.

(3) Optimization of the working environment is enhanced.

(4) The rate of serious occupational injury is zero.

(5) The Company has been certified by the Taiwan Food and Drug Administration as a “Food Health Inspection Institution”. As a leader in the domestic food industry in terms of inspection and analysis and within the scope of ISO 17025 certification, the Company aims to safeguard food safety for the public.

(6) The Company remains committed to the idea of “natural product quality, optimized environmental health, and popularized customer satisfaction” in order to meet customers’ requirements for food safety.

(7) The Company assigns the food safety management team to promote and implement the ISO 22000 food safety management system to ensure the products comply with safety requirements.

(8) The Company encourages suppliers to be prepared for quality, delivery periods, and technology, and also fulfill their corporate social responsibility and construct a sustainable supply chain.

3. Corporate governance issues:

(1) The Company’s website (https://www.agv.com.tw/) discloses information related to its financial business and corporate governance to shareholders and stakeholders for reference. The website also publishes channels for internal and external whistleblowers, which protect files provided by whistleblowers through encryption.

(2) In addition to maintaining the normal development of operations and maximizing shareholders’ interests, the Company also pays attention to issues concerning consumer rights, environmental protection of communities, and charity, while attaching importance to corporate social responsibilities.

(3) As the top governing body of AGV, the Board of Directors is composed of 9 directors (including 3 independent directors). A well-functioning and efficient Board of Directors is the basis of good corporate governance to provide high-quality products and services to the market. The Board of Directors is closely focused on the overall operations of the Company to implement corporate governance policies.

(4) The Company keeps track of amendments to laws and regulations, and complies with the requirements of the law.

1. The EHS management system operates in accordance with the relevant EHS policies. Meanwhile, the Company plans and promotes the EHS management operations per the existing organizational framework, boosts the risk management in the workplace, identifies potential hazards in the workplace, and proposes control measures. The automated inspection system may ensure that all machines, equipment, and facilities function normally. The operating environment monitoring policy provides employees with a safe and healthy operating environment. Sound education and training may improve the employees’ awareness toward safety, health, and environmental protection.

2. The Company has received accreditation badges for a healthy workplace and health promotion, as each of the Company’s employees may be better protected in a healthy working environment.

3. The Company established a department dedicated to environmental management to maintain its environmental management systems, has set up an energy-conservation performance system, uses its best efforts to optimize the improvement of process, and has equipment care and maintenance in place.

4. The Company complies with the environmental protection and occupational safety & health laws and regulations, and other requirements. All of the Company’s staff continue to promote improvement in order to effectively control the risk of environmental safety and health in the operating environment, and in the process of any activities, products, or services, prevent any accidents, and build a comfortable and safe working environment to promote employee health and wellbeing.

5. The Company has put more effort into energy conservation and carbon reduction, and developed an environmental improvement management plan under the P-D-C-A management model. Specific policies include conserving resources and ensuring their management, continuous improvement and sustainable development, EHS as everybody’s responsibility, and complying with and meeting the requirements of EHS laws and regulations. Additionally, at least one internal audit and one external audit are conducted each year.

1. The Company is committed to improving the efficiency of energy use. The energy used by the Company mainly includes steam, electricity, and natural gas.

2. The Company currently owns three major production lines. The consumption of steam for primary raw materials was reduced by 2.85% in 2022 form 2021. The consumption of electricity for our main manufacturing processes was reduced by 2.6% in 2022 from 2021. The consumption of water for primary raw materials was reduced by 5% in 2022 from 2021. In the future, the Company will continue to make good use of energy and love the earth to mitigate the impact to the environmental load.

3. The Company will continue to promote the environmental protection program to improve its environmental protection performance and also use the best effort to promote energy conservation and carbon reduction in the office premises, recycling and reuse, protection of water and soil resources, and strengthen the education to employees.

1. Given the existing production policy oriented toward low carbon emissions adopted in Taiwan, the Company analyzes and controls the production capacity and engages in production under the energy-conservation model. Meanwhile, the Company engages in analysis and adjustment based on big data by product line to reduce carbon emissions and achieve the purpose for an eco-friendly environment.

2. The Company evaluates the impact posed by climate changes to the Company based on the “Task Force on Climate-related Financial Disclosures (TCFD)”

Most of the Company’s subsidiaries are engaged in sales business. Therefore, the disclosures related to them are primarily made by the Company. (Exclusive of subsidiaries).

1. Direct GHG emission volume

Unit: Tonne-CO2e/year

In 2022, the direct GHG emissions were reduced by 24% from 2021.

2. Water consumption:

Unit: Ton

In 2022, the water consumption for finished goods was reduced by 5% per unit available for recycling and reuse from 2021.

From 2022, the Company will regenerate soft water and discharge cleaner wastewater which will be stored and pressurized and then made available to the roads and toilets at the factory premises for flushing and irrigation. The Company has saved approximately 11,066 tonnes of water, and has recovered discharged water that has been treated through filtration to sludge dehydrators for the cleaning of cloth filters, saving approximately 25,902 tonnes in 2022.

3. Gross weight of waste:

Unit: Ton

In 2022, the amount of waste was reduced by 12% from 2021.

In 2022, we started to promote more thorough waste sorting in various ways such as posters and slogans, with the expectation to achieve recycling and sustainable use of resources via the environmental protection policy of the “3Rs”, namely “reduce”, “recycle”, and “reuse”, in order to mitigate environmental damage and pollution. We aim to reduce the amount of waste by 1~3% each year and expect to cut the total waste by 10% by 2025.

4. Regarding the status of GHG emissions, an inventory of our internal GHG emissions is considered fundamental to carbon management. A GHG inventory may not only verify the accurate amount of emissions, but also help find room and opportunities for reduction. Therefore, we expect to start a company-wide inventory of carbon emissions in 2024 and to introduce the ISO 50001 energy management system in 2025 in order to keep track of the status of our GHG emissions, find room for reduction of emissions, and formulate reasonable corresponding plans for emissions reduction.

5. For related environmental protection including energy savings and carbon reduction, water resources management, pollution prevention, and waste management, please refer to the ESG report of the Company.

1. The Company adopts a human rights-based labor policy in accordance with the Ethical Trading Initiative (ETI). The Company has established the work rules and regulations regarding the disciplinary system, performance evaluation, gender equality, and occupational accidents in compliance with the regulations of the Labor Standards Act with reference to the International Labor Convention to build a friendly and effective workplace. The HR Department is responsible for the establishment, amendment, and announcement of relevant regulations to notify the employees to comply with the related labor regulations.

2. The Company implements restrictions on the employment of child workers, prohibits forced labor, and is against harassment, discrimination, and bullying. Meanwhile, the Company has issued the “Declaration on the Prevention of Sexual Harassment in the Workplace”.

3. The Company provides a safe, healthy, and sanitized workplace.

4. The Company values employee relations. Please see the CSR report of the Company disclosed on the Company’s website (website: https://www.agv.com.tw) and the MOPS.

The personnel management regulations of the Company have established a comprehensive system, including the work rules, remuneration management regulations, hierarchical responsibility regulations, subsidy payment standards, attendance standards, promotion and transfer regulations, performance regulations, rules for leave application, performance and year-end bonuses, remuneration for employees, insurance payments, welfare fund, and bonuses for proposed improvements.

Workplace diversity and equality: The Company values gender equality, equal pay, and equal opportunity for promotion. In 2022, among the Company’s employees, female employees accounted for 57.14%, and female managers accounted for 13.75%.

Cash gifts and subsidies: The Company organizes health examinations for employees, provides parking lots and lactation rooms, and maintains a comprehensive welfare system, such as: cash gifts for retired employees, marriage, parental, children’s education, and funeral subsidies, maternity, paternity, and parental leave, and company gifts.

The Company provides feedback and reflects the profits in the employee remunerations and benefits to share the results of earnings with employees, such as performance bonuses subject to the achievement of KPI, incentive bonuses subject to personal contributions, and employee remuneration. The Company strives to maintain labor–management harmony in order to create a win-win regarding labor–management relations.

1. The Company provides employees with a safe and healthy workplace by establishing a safety and health management organization and appointing management personnel, adopting the Safety and Health Work Rules, and checking all machinery on a regular basis. We also provide safety training and health examinations for employees. To take care of the physical and mental health of employees, we hire professional nurses and contract qualified physicians to regularly provide employee consultations and hold life-related lectures to share and communicate with employees. We conduct employee retirement matters according to the Labor Standards Act, the Labor Pension Act, and the Human Resources Department also arranges education and training for employees, including courses on occupational safety training, forklift operation, quality, safety and health training, first-aid personnel, and fire drills.

2. Safety and health training for employees organized in 2022:

3. In 2022, 5 employees suffered work injuries on the way to/from work, and 4 employees suffered work injuries in the workplace.

1. From the perspective of sustainable management, the Company organizes periodic and non-periodic training for managers and employees, such as new employee orientation, professional training, and job rotation to cultivate outstanding talents and managers with multiple capabilities while providing them with important positions and challenges. After an analysis of the questionnaires for survey, the Company discovered that employees will apply their learning to their duties to increase the business performance of the department and the Company. Comprehensive and smooth promotion channels may attract, inspire, develop, and retain talents to complete the organizational work of the Company.

2. In 2022, a total of 980 employees attended training for a total of 5,179 training hours.

2. For the health of the consumer, the Company continues its innovation and R&D in food technology, besides offering the healthiest, safest, and most delicious products. In this regard, we have become professionals in this field with outstanding performance and are devoted to the development of “organic products” and “traceable products” in recent years in the hope of providing the consumer with healthier, safer, and more transparent products. In addition to the essential objectives of sustainable development and stable growth in the future, the Company will continue to lead food fashion, create consumption trends, and promote industry upgrades.

3. We register the personal information of consumers via the consumer service hotline, which is used for the service of such consumers only. The registration of the customer service system is only limited to the relevant personnel, and the Information Department also controls the registration qualifications and applications of personnel. The Company has also established a personal data protection and management system to protect customer privacy. Through internal audits, training, and communication regarding personal data, the Company safeguards the personal data of customers.

4. To protect the rights of customers, the Company has set up an 0800 product service hotline with dedicated personnel to provide services for consumers regarding the distribution channels of products, description of orders, and answering consumers’ questions.

1. Before conducting business, the Company will assess whether the suppliers, customers, or other trading counterparties have any illegal behavior or are involved in unethical conduct and take this as an important reference for the selection of suppliers.

3. The Company conducts supplier evaluations and source inspection, and provides non-periodic audit guidance to require implementation of the relevant requirements in the daily management of the food supply chain.

4. In 2022, an evaluation was conducted for a total of 186 suppliers (168 were rated A, 13 were rated B, 4 were rated C, and 1 was rated D). The business and factory registrations of the suppliers are in compliance with the applicable laws and regulations, and the suppliers have applied for registration on the food business platform (Fadenbook) based on the “Regulations Governing the Category and Scale of Food Businesses Who May Commence their Business Operations After Applying for Registration and the Date of Implementation” while meeting the Regulations on Good Hygiene Practices for Food.

1. The sustainability report has been prepared with reference to the latest GRI Standards of the Global Reporting Initiative (GRI), on the basis of the core options and the supplementary indicator for the food processing sector (G4 Sector Disclosures – Food Processing), and to the “Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies” of the Taiwan Stock Exchange.

2. We have engaged Crowe Taiwan to provide independent limited assurance of this report in accordance with the Standards on Assurance Engagements No. 1 “Assurance not Classified as an Audit or Review of Historical Financial Statements” issued by the Accounting Research and Development Foundation. The limited assurance procedures of the assurance report are conducted for the information of assurance to confirm that it meets the principles disclosed in the core options of GRI.

In compliance with the Best Practice Principles.

VI. If the Company has established its own sustainable development best-practice principles based on the “Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies,” please describe the status, and any deviation thereof from said Principles:

On May 12, 2017, the Company adopted the Corporate Social Responsibility Best Practice Principles, which were renamed the Sustainable Development Best Practice Principles on January 18, 2022. All relevant systems and operations are in compliance with the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” without any material differences. At the end of September 2022, the Company also disclosed the 2021 sustainability report on the Company’s website and the MOPS.

VII. Other information useful to the understanding of the sustainable development implementation:

1. “For a Healthy Tomorrow” is the corporate vision of AGV. The management team of AGV never changes its mind to uphold the forward-looking sustainable management philosophy claiming “Nature, Environmental Protection, Green, and Health” to lead the food industry, create consumption trends, guard nationals’ health, fulfill its corporate social responsibility, uphold the philosophy of love and trust, and keep working hard to move toward the “leading enterprise practicing ESG in the food industry of Taiwan”.

2. AGV implements the principles of “product traceability and tracking”, “simple formulas and clean labeling”, and “compliant systems and international standards”.

3. All food and beverage factories of AGV have acquired a number of internationally recognized certification systems including ISO 22000 and HACCP.

4. AGV not only provides a safe, healthy, harmonious, and happy workplace for employees to seek balance between their work and families, but also actively enhances the professional skills and competencies of employees so that they are able to grow in step with AGV.

5. For many years, we have received honors in the forms of patents, certifications, and awards, including: patents for processes and effects in multiple countries, national health numbers, Monde Selection awards, the EU’s AA (Anti-additive) certification, the EU’s AA Taste Awards certification, selection as Eatender foods by the Food Industry Research and Development Institute, Superior Taste Award from the International Taste Institute, innovation awards from the Health Food Society of Taiwan, Food Innovation Award from foodNEXT, product awards from the Taiwan Association for Food Science and Technology, special food awards in Japan, and the Symbol of National Quality (SNQ).

6. We have continued to increase investment in software, hardware, and intellectual property.

7. In 2022, the Company received the following domestic and foreign awards:

U.S. patent for the process of preparing oligosaccharide-enhanced milk products

Taiwan patent for Peanuts in Milk (peanut soup containing milk with good peanut texture and fragrance beneficial for intestinal health, its recipe and application, and canned peanut soup containing milk), Taiwan patent for Barista Oat Latte (oligosaccharide oat liquid composition, powder composition, and drink with improved properties and immunomodulatory effect, the method for micro-decomposition of their four enzymes, and their applications), A.A. Three Stars certification for Premium Oat Drink (Original) (the fourth year), Eatender certification for Mapo Tofu, carbon footprint certification for Premium Oat Drink (Original), three-star A.A. Taste Award (A.A. certification) for Premium Oat Drink (Barista Oat Latte), two-star A.A. Taste Award (A.A. certification) for Chili Sauce, Monde Selection Gold Award for Premium Oat Drink (Dark Chocolate), Monde Selection Gold Award for Premium Oat Drink, Monde Selection Gold Award for OKINA Deep Natural Electrolyte Water, Monde Selection Silver Award for Mapo Tofu, Monde Selection Crystal Prestige Trophy for AGV Products Corporation, three-star Superior Taste Award from the International Taste Institute for OKINA Deep Natural Electrolyte Water, two-star Superior Taste Award from the International Taste Institute for Premium Oat Drink (Dark Chocolate), one-star Food Innovation Award – Food and Beverage Innovations for Premium Oat Drink (Sesamin Easy Sleep Plus), and one-star Food Innovation Award – Food and Beverage Innovations for Premium Oat Drink (Barista Oat Latte).

8. The Company’s contribution to society not only includes monetary donations but also investments in manpower, donations of items, and service provisions. The main contents of various social activities are summarized as follows:

a. By establishing an energy-saving performance system, we are striving to optimize the improvement of our manufacturing process and implement the enhancement of competency training for product line personnel and equipment maintenance to further improve the performance of equipment. In addition, we improve employees’ concept of energy savings and carbon reduction to reduce operating costs from the viewpoint of corporate sustainable development in addition to the reduction of greenhouse gas emissions.

b. As of the date of publication of the annual report, the money and supplies donated and visits conducted by Company are as follows:

Physical Disability Service Association of Chiayi City - “A Warm Winter” charitable event for economically disadvantaged families and physically or mentally disabled persons, Chiayi Branch Office of Taiwan Fund for Children and Families – the event “A Warm New Year Year”, Sunflower Care Association of Taitung County – aid to disadvantaged families, Chiayi Branch Office of Taiwan Fund for Children and Families – charitable carnival and sales, Physical Disability Service Association of Chiayi City – charitable lottery, Rain Spring Charitable Foundation – respect for the elderly on the Double Ninth Festival, Ro Ju Er Education Foundation – charitable carnival and sales, Chiayi City Government – Christmas event, Chiayi Branch Office of the Taiwan Fund for Children and Families – Christmas event, World Vision Taiwan – Christmas event, Hsin Kang Feng Tian Temple – art festival and street parade, National Singang Senior High School of Arts – sports day for the 17th anniversary of the school, Chung Yi Social Welfare Foundation – walking carnival, Hsin Kang Feng Tian Temple – the event “Seven Star Bridge of Peace”, Department of Business Administration of National Chung Cheng University – Fundraising, Minxing Police Station – volunteer police, Civil Defense Team – dinner party, Taoyuan Municipal Luo Fu Senior High School – snacks for charity, and Manufacturers Association of Minxiong Touqiao Industrial Park – model worker award ceremony.