To prevent directors, employees, and other insiders from trading securities by using material non-public information, the Company has established internal regulations. On March 23, 2022, the Board of Directors approved amendments to the Company’s Corporate Governance Best Practice Principles, expressly stipulating that directors shall not trade the Company’s shares during the closed period of 30 days prior to the announcement of the annual financial report and 15 days prior to the announcement of each quarterly financial report. In 2025, the Company reminded directors and insiders by email each quarter of the scheduled Board meeting dates for approving the financial reports and the relevant closed periods for share trading. A total of 54 persons were covered by such email reminders.

The Company arranges at least one legal compliance training session each year for managerial officers and senior executives at the headquarters, Suzhou Plant, Zhongshan Plant, Yuanli Plant, and Tongluo Plant. The training covers matters including the confidentiality and disclosure of material information, prevention of insider trading, and shareholding transactions by insiders. The legal compliance training lasts 60 minutes, followed by a post-training assessment. In 2025, the legal compliance training session was held on December 31, with a total attendance of 27 persons. Electronic copies of the training materials and relevant regulations were also distributed to managerial officers and senior executives for reference.

The Company actively implements its ethical corporate management policy and incorporates it into its organizational culture and daily operations. Relevant courses and awareness programs are conducted through various means, including basic training for new employees and awareness promotion for all employees.

The implementation status of the Company’s ethical corporate management in 2025 is as follows: