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HIWIN Technologies Succession and Continuity Plan

To ensure stable corporate governance and sustainable operations, HIWIN Technologies has designed a comprehensive succession planning and operational mechanism for the Board of Directors, CEO, and management team, building a diverse, professional, and enduring leadership structure.

1. Board of Directors Succession Planning

The Board is categorized into Non-Executive Directors, Executive Directors, and Independent Directors, with specific principles and measures for each.

Non-Executive Directors

Definition: Nominated by major shareholders or strategic partners, serving without executive duties.

Principles:

  • • Adjust seats and ratios based on shareholder structure and company scale
  • • Prioritize candidates with industry experience and strategic capabilities

Measures:

  • • Establish a transparent nomination system
  • • Implement term rotation and performance evaluation to maintain vitality and efficiency

Executive Directors

Definition: Directors actively involved in company operations (e.g., Chairman, President).

Principles:

  • • Systematic development of internal senior talent to ensure operational stability
  • • Build emergency succession capability to strengthen risk management

Measures:

  • • Create a key talent list and development plan
  • • Implement job rotation to broaden strategic vision
  • • Apply long-term incentive programs to stabilize core leadership

Independent Directors

Definition: Individuals with no significant equity or interest ties, possessing professional expertise and supervisory responsibilities.

Principles:

  • • Emphasize professionalism and independence to enhance governance
  • • Promote diversity and gender balance

Measures:

  • • Establish a talent pool with diverse expertise (finance, academia, precision manufacturing)
  • • Implement term rotation and performance systems
  • • Provide onboarding training (e.g., governance education) to improve effectiveness

2. CEO Succession and Continuity Plan

Three mechanisms are designed for different scenarios to ensure seamless leadership transition.

Planned Succession

Description: Select and develop successors in advance.

Strategies:

  • • Build a multi-tier leadership talent pool
  • • Design comprehensive training and development programs
  • • Set a clear timeline with defined milestones
  • • Conduct regular evaluations and adjustments
  • • Facilitate close collaboration between current CEO and successor for smooth handover

Retirement Succession

Description: Transition due to statutory term or age-related retirement.

Strategies:

  • • Initiate retirement transition plan years in advance
  • • Regularly assess successor readiness
  • • Align successor with corporate strategy and vision
  • • Systematize knowledge and experience transfer

Emergency Succession

Description: Immediate transition due to health, accident, resignation, or incapacity.

Strategies:

  • • Assign interim leadership through consensus between the individual (if possible) and the Board
  • • Prepare an emergency succession manual and utilize management committees for continuity
  • • Maintain stakeholder confidence through established communication channels

3. Management Team Succession Plan

HIWIN has long implemented systematic development from entry-level to senior management, ensuring operational stability through a complete succession framework.

Strategies:

  • • Systematically identify high-potential talent for succession programs
  • • Provide diverse training and development (including workshops, job rotation, overseas assignments) to cultivate leadership aligned with corporate culture
  • • Encourage cross-functional rotations and project management experience
  • • Hold annual consensus workshops for mid-to-senior managers to align organizational vision

Through a comprehensive succession structure, HIWIN ensures leadership stability, continuous organizational evolution, and fulfillment of sustainable operations and corporate responsibility.