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. Two of them are qualified as CPA, one of them possesses operational management capacity and others possess industry experience for many years.

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.