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Letter from the Sustainable Development Committee Chairperson

Industry and lifestyle are constantly changing, and change is sought for long term development. What remains unchanged is that Apex always believes that in addition to focusing on its core business and pursuing revenue and shareholder returns maximization, companies must also consider their impact on the environment and social responsibility, and become a force in the positive cycle of society.

ESG importance has become a global consensus, and Apex is committed to bringing positive impacts to society. Since 2015, Apex has based its operations on sustainable management and formul ated a sustainable management policy, which incorporates three major goals: "Corporate Governance," "Sustainable Environment," and "Social Welfare" into daily operations. To understand the major issues of concern to stakeholders, information is collected t hrough internal units, strategies are developed, specific actions are taken, and information disclosure on sustainable management is strengthened.

Facing global climate change and responding to international trends, the company has launched the "Apex GREEN Project" to strengthen ESG development through the three main pillars of "renewable energy," "wastewater recycling," and "improving energy efficiency." The development of "renewable energy" began in December 2021 and aims to increase the company's renewab le energy substitution rate through the "Apex Solar Energy Program" to meet future factory electricity demand. "Wastewater recycling" introduces a new generation of wastewater treatment and recycling system through the "Apex Wastewater Recycling Project" to increase the proportion of wastewater recycling. The GREEN Project is not only being constructed within the company's scope, but Apex is also taking resources to remote areas in northern Thailand to help local rural areas install solar panels and improve their water supply systems. Apex adheres to the business philosophy of putting people first and deeply cultivates Thailand. This project not only unilaterally brings clean energy and sustainable concepts to remote areas in northern Thailand but also reinf orces the centripetal force of the Apex family by giving back to employees' hometowns, rooting deeply in local communities in Thailand, and establishing a mutually beneficial relationship with society.

Social engagement and employee welfare are two major a reas that Apex places great emphasis on. Apex International is like a big family, and employees are our greatest asset. Therefore, the physical and mental well being of employees and the workplaceenvironment are highly valued. In addition to ensuring the safety and hygiene of the work environment through various inspections and certifications, Apex also provides a large number of job opportunities and offers highly competitive salaries, diverse training courses, and various work-life balance measures to provide employees with a better present and a promising future.

In terms of corporate governance, Apex has been ranked among the top 6% to 20% of listed companies in corporate governance evaluations for eight consecutive years, and we are constantly striving for progress. We actively promote business integrity and management execution and fulfil our responsibilities through the operation of functional committees, ensuring that the company's operations comply with relevant laws and regulations, and arranging relevant courses to ensure that directors, managers, internal personnel, and employees understand business integrity. More than one-third of the board of directors are independent directors, and in 2022, a female director was added to the board. All directors are outstanding figures in their respective fields, demonstrating the diversity of the Apex board of directors and leading Apex's sustainable business development together.

In 2023, Apex will continue to take the firmest steps towards sustainable development and strive to fulfil our responsibilities for sustainability.

Framework of Sustainable Management

Apex established the "Sustainable Development Committee" under the Board of Directors in 2022 to assist the Board of Directors in promoting the sustainable development of the Company and its subsidiaries, recently reported to the Board of Directors on December 19, 2023:

  1. Formulate sustainable development policies.
  2. To guide, track and review the performance of sustainable development activities, and report to the board of directors.
  3. Other matters that the committee should be instructed to handle after the resolution of the board of directors.
  4. After the above-mentioned matters are formulated by the committee and reported to the board of directors, the derived executive plan of the relevant implementation.

Apex analyzes issues regulatory based on the international reporting preparation guidelines and concept of materiality. It has formulated strategies and established relevant measures for risks related to environmental, social, climate change and corporate governance issues related to the Company's operations. Please refer to the "Corporate Governance", "Ethics and Integrity", "Environment Protection", "Social Investment", "Happy and Safe Workplace" and other chapters of the ESG Report on our website.
At present, the corporate governance team reported annual results and summary of sustainability works to the Board meeting at the last Board meeting of the year, to communicate and exchange ideas with the Board then took it as reference of improvement and adjustment for the next year.
The Company's sustainability promotion team will integrate internal resources to plan and implement different aspects of ESG sustainability projects; internally promote the concept of corporate sustainability; collect information to provide external evaluation and sustainability report disclosure.

Corporate Governance Officer

The Company has resolved the appointment of Ms. Yu-Ying Tsao as the Chief Corporate Governance Officer (CGO). Yu-Ying Tsao has over 20 years of management experience in stock affairs and internal audit for public companies. CGO is responsible for corporate governance matters, including producing meeting minutes of the Board, functional committees and AGM, arranging continuous development for directors, furnishing information required for business execution by directors, and providing the information regarding the latest legal developments related to organizational operations to help directors and members of functional committees achieve legal compliance. The Corporate Governance Evaluation Team, ESG Team, and Ethical Corporate Management Team will also assist with the relevant corporate governance affairs.

The following describes the 2023 performances:
  1. Responsible for handling matters related to the meetings of the Board of Directors, functional committees, and AGM in accordance with the law. Drafted and prepared the agendas for the Board and committee meetings, notified directors and members of functional committees at least 7 days in advance of the meetings. Convened the meetings and provided materials for the attendees. If any conflict of interest arose, the attendees were notified beforehand. The minutes are disseminated within 20 days after the meetings.
  2. Arranging continuous development for directors:
    The new and current directors have already finished the educational courses in compliance with the law in 2023.
  3. Furnishing information required for business execution by directors and assisting directors with legal compliance:
  4.   (1) Confirmed whether the Board of Directors and functional committees are in compliance with relevant laws and corporate governance codes.
      (2) Assisted the directors and members of functional committees in complying with laws and regulations when carrying out business or making formal decisions.
      (3) After the meeting, check the release of material information of major resolutions of the Board of directors to ensure the legality and correctness of the content of the material information.
Advanced studies status of 2023
Date Organizer Name of Course Training Hours Total Training Hours of 2023
2023/04/27 Taiwan Stock Exchange Corporation 'Sustainable Development Action Plans for TWSE and TPEx Listed Companies (2023)' Seminar 3
21
2023/07/04 Taiwan Stock Exchange Corporation CATHAY SUSTAINABLE FINANCE AND CLIMATE CHANGE SUMMIT 6
2023/08/11 Taiwan Corporate Governance Association Corporate Carbon Management following the Promulgation of the Climate Change Act 3
2023/10/20 Securities & Futures Institute 2023 Insider Trading Prevention Seminar 3
2023/11/09
Taiwan Corporate Governance Association
New Thinking of Enterprise Risk Management - Integrating Strategies Development and ESG Risk Management 3
2023/11/29 Securities & Futures Institute 2023 Seminar of Shareholding Trading and Law Compliance for Insiders 3