Sustainable Governance

All senior management, supervisors, and employees across the Taiwan Headquarters and all plant locations are required to sign "MERRY's Business Conduct and Ethics Code". Additionally, new employees at the Taiwan Headquarters and all plant locations receive in-person training courses related to Integrity Management upon onboarding, ensuring their full understanding of MERRY's commitment to promoting Integrity Management, preventing dishonest conduct, and steadfastly upholding the highest standards of legal and ethical behavior. In 2025, three training sessions related to integrity in business were organized for employees at the Taiwan Headquarters. The curriculum encompassed “MERRY Industrial Information Security Guidelines,ˮ General Occupational Health and Safety Training,ˮ and “Insider Trading Case Studies.ˮ Each facility independently arranged in-house training courses or integrated them with RBA training programs based on their specific needs. The Group-wide training completion rate for 2025 was 92.32%.In addition, the companyʼs responsible departments and corporate governance units periodically disseminate information related to Ethical Corporate Management to all employees and directors via email. For detailed annual implementation results of the Integrity Management Promotion Team, please refer to the Company Website.

Integrity Management Training

2025 Annual Implementation of Integrity Management Policy

• The Integrity Management Promotion Team reports its achievements to the Board of Directors at the end of each year. The most recent reporting date was 2025/12/24, and the Audit Department oversees the implementation results
• MERRY's "Code of Business Conduct and Professional Ethics" explicitly defines a conflict of interest prevention policy and provides appropriate channels for disclosure. In 2025, 100% of all new employees signed the aforementioned code
• Suppliers are required to sign a Social Responsibility Commitment, which encompasses integrity conduct clauses such as ethical business practices and fair dealing; Periodically review and audit suppliers, requiring them to also conduct integrity conduct audits and establish related requirements for their sub-suppliers
• Finalize the Integrity Management risk assessment form
• To promote and implement integrity management policies,cultivating a corporate culture of integrity among employees.Through internal communications, disseminate anti-corruption,anti-bribery, and anti-money laundering policies, and guidelines for transparent reporting of gift acceptance to all personnel. Additionally, conduct in-person training at general company meetings to raise awareness regarding insider trading and share relevant case studies

Corruption 0 Tolerance 

The Integrity Management Promotion Team consistently promotes the company's Anti-Corruption and Anti-Bribery regulations. MERRY has established its Anti-Corruption, Anti-Bribery, and Anti-Money Laundering Policy, constructing corporate governance standards and risk management mechanisms. MERRY officially declares a zero-tolerance principle towards corruption and bribery. Furthermore, in response to the increasing international emphasis on anti-money laundering, and to prevent risks associated with money laundering, tax evasion, and sanctions violations,MERRY has formulated an Anti-Money Laundering Policy. This policy safeguards MERRY from losses incurred due to involvement in money laundering crimes and prevents potential harm to public welfare, demonstrating MERRY's determination to prevent money laundering crimes, uphold the core value of sustainable operation,and fulfill its responsibility as a global corporate citizen.

Whistleblowing and Protection Mechanism

Regarding dishonest conduct, such as violations of ethical behavior or illegal acts,MERRY has established relevant measures within its "Integrity Management Operating Procedures." These procedures explicitly stipulate anti-bribery, anti-corruption, and the prohibition of facilitation payments. The company provides reporting channels for whistleblowing on dishonest or improper conduct, with members of the Integrity Management Promotion Team responsible for receiving reports from relevant interested parties. Concurrently, a written statement is issued committing to protect whistleblowers from inappropriate treatment as a result of their reports.

Group Regulatory Compliance

To ensure that MERRY's operations comply with Governmental Regulations in all operating locations and the requirements of all clients, the Legal and Patent Department, referencing ISO 19600:2014 Compliance Management Systems, has established relevant compliance management mechanisms for the Collection,evaluation, implementation, and monitoring of compliance matters.

These matters encompass 287 regulations across 11 major categories: occupational safety and health, labor/social responsibility, information security, energy, environment, medical devices, commercial/Anti-Bribery, finance and taxation, intellectual property, fair trade/anti-trust, and product. Department heads are responsible for ensuring that their internal operational processes comply with these regulations. In 2025, there was one penalty incident, totaling NT$4,329.

The definition of a material event references the definition outlined in the 'Taiwan Stock Exchange Corporation Procedures for the Verification and Public Disclosure of Material Information by Listed Securities Companies'. Should an event be identified as a material event and result in a penalty, it shall also be disclosed in accordance with applicable regulations on the Market Observation System.