On August 3, 2021, the GMTC's board of directors approved the formulation of "Risk Management Policies and Procedures" as the guiding principles for risk management. The risk management policy defines various risks in accordance with the company's overall operating policy, establishes a sound risk management mechanism to identify, accurately assess, effectively monitor, and strictly control risks within acceptable scope as early as possible. In order to strengthen risk management, the Board of Directors was submitted to modify the "Risk Management Policies and Procedures" on July 27, 2023, and the Audit Committee will supervise risk management.

The company's risk management organization, in order to reduce the impact of internal and external risks, follows the risk management process of risk identification, risk evaluation, risk monitoring, risk reporting and disclosure, and risk response. Every year, based on the company's business and operating characteristics, it identifies Regarding risks related to corporate governance and economic, environmental, social and other issues related to operations, consider the probability of risk occurrence and degree of impact, plan relevant management and monitoring measures, and regularly review the risk management status.

Risk Management Policies and Procedures

To reduce the impact and influence of internal and external risks, the Company evaluates the likelihood of risk events and severity of operational impacts based on the characteristics of its business operations. The Company classifies risks into five major categories: "supply chain risks", "financial risks", "management risks", "environmental risks", and "other risks", and follows the aforementioned risk management processes to effectively manage and monitor these potential risks, aiming to mitigate their impact and achieve sustainable operations.

The board of directors is the highest governance unit for risk management, approving risk management policies and structures, and supervising the effective operation of the risk management mechanism. The Audit Committee supervises risk management, reviews the implementation of risk management, and guides resource allocation. The Corporate Sustainability Committee leads the execution of relevant business. The committee has a risk management team and convener. Each committee group and each business unit pay attention to the global environment and industry changes, and regularly conduct risk factor identification and risk control on the company's potential risks.

The risk management team is responsible for establishing the operational mechanism of the Company's risk management and promoting the risk management process. It reviews the risk management status every month and tracks its implementation, as well as regularly makes plans and implements control reports to the Corporate Sustainability Committee. It also regularly reports the annual risk assessment results and risk management operations to the Board of Directors and the Audit Committee, and organizes joint efforts to implement corporate risk and crisis management.

1. The annual risk report for 2022 was submitted to the Corporate Sustainability Committee on January 19, 2023.

2. The semi-annual risk report for 2023 was submitted to the Corporate Sustainability Committee on July 24, 2023.

3. On July 27, 2023, the Company submitted the proposal to the Board of Directors for revision of risk management policies and procedures.

4. The 2024 risk assessment was launched on September 6, 2023, during which the convener of each group of the Corporate Sustainability Committee and the risk management unit self-assessed major risk topics.

5. The climate change risk and opportunity assessment report was completed on October 11, 2023.

6. The 2024 risk assessment results were reported to the Corporate Sustainability Committee on October 12, 2023.

7. The 2024 risk assessment results were reported to the Audit Committee and the Board of Directors on October 26, 2023.

8. Tracked the control results of monthly material risks for 2023

A risk assessment was conducted based on the occurrence probability and impact of risk issues, and the risk matrix was formed as follows. After discussion with the corporate sustainability committee, a consensus was reached and the "exchange rate risk", "Implementation of carbon pricing mechanisms in various countries", and "strict environmental regulations standards" ", "Fatal occupational injuries risk" and "Tariff risk" are included in the major risks in 2024, and relevant control measures have been formed and will continue to be monitored in the future.