Governance

Code of ethical conduct

Shan-Loong Transportation Code of Ethical Conduct

Established: November 12th, 2020, as passed by the board of directors

Article 1: Purpose and basis

To give a basis for all actions by the Company's directors, managers, and employees; to accord with good social order & customs; and to help Company stakeholders understand the Company's ethical standards, in accordance with the Taiwan Stock Exchange Corporation's Guidelines for the Adoption of Codes of Ethical Conduct for TWSE/GTSM Listed Companies, this Code is formulated and is to be complied with.

Article 2: Scope

This code applies to all Company personnel, including directors, managers, and employees.

Article 3: Ethical principles

In the course of performing management and carrying out their duties, the Company's personnel shall obey ethical regulations, and shall abide by the Company's operating principles of loyalty, honesty, faith, and truth.

Article 4: Forbidding conflicts of interest

Company personnel shall not use the performance of their duties to obtain improper benefit for themselves, their spouses, relatives within the second degree, partners, or previous or future employers.

When the Company engages in fund loans, provides guarantees, has material asset transactions, or buys (sells) goods with the aforementioned relations, the Company shall adopt measures to present conflicts of interest, such as recusal or forbidding such action. Company personnel involved in such matters shall proactively explain whether they or the Company have any conflicts of interest.

Article 5: Forbidding personal gain

Company personnel shall not engage in any of the following:

1. Using the performance of their duties or Company assets/information for personal gain.

2. Competing with the Company. However, where directors (with shareholder meeting permission) and managers (with board of directors permission) are relieved of such non-compete restrictions, they are not covered by this restriction.

3. Behavior forbidden by the Company's or legal regulations.

Article 6: Duty of confidentiality

With regard to the Company's proprietary and licensed technical and non-technical information, and information on customers bought from (sold to), except where authorized or legally required to be public, the Company's personnel shall maintain the duty of confidentiality. The aforementioned information that shall be kept confidential includes but is not limited to all non-public information that may be used by others or which, after disclosure, may cause damage to the Company or its customers.

Article 7: Fair dealing

Company personnel shall maintain an attitude of honest and fairness. In their dealings with all customers bought from (sold to), competitors, and other employees, employees shall not use manipulation, deception, or abuse of information gained as a result of duties, make untrue declarations about important matters, or engage in other unfair trade practices to obtain improper benefits.

Company personnel shall not, in the course of carrying out their duties, request, agree to, deliver, or accept gifts, entertainment, discounts, bribes, or other improper benefits for the sake of the Company, third parties, or themselves. However, where such gifts or entertainment constitute customs for social etiquette or are allowed by the Company, this rule shall not apply.

Article 8: Proper care and use of Company assets

Company personnel shall all care for the Company's assets, and shall ensure that they can be effectively and lawfully used for official business purposes.

Article 9: Legal compliance

Company personnel shall faithfully comply with the Company Act, the Securities and Exchange Act, and other legal orders and stipulations regulating the Company's activities. The Company shall also reinforce education on ethical concepts.

Article 10: Encouragement to report all behavior that is illegal or violates the Code of Ethical Conduct

Any Company personnel who suspects or discovers a violation of the legal directives or this Code shall proactively report such to a director, manager, chief internal auditor, or other appropriate supervisor. They shall also provide, to the greatest extent possible, sufficient information to allow the Company to appropriately handle follow-up handling matters.

The Company shall handle such reports in a confidential manner, and shall allow anonymous reports. Facts shall be discovered via independent channels, and whistleblowers' safety shall be maximally protected, to prevent retribution against them.

Article 11: Penalties and relief measures

When Company personnel violate this Code, the matter shall be handled in accordance with the law or the Company's relevant regulations. Where required by law, the violator's position, full name, date of violation, subject of violation, regulation(s) violated, and handling status shall be disclosed on the Market Observation Post System (MOPS) as soon as possible.

Violating personnel as mentioned in the preceding paragraph may file an appeal. If it discovered through investigation that the person did not in fact violate the regulation, the Company shall expunge the infraction. When the matter has already been disclosed on the MOPS, announcement of the expungement shall also be made on the MOPS.

Article 12: Exemption process

When there is a need for Company personnel to be exempt from obeying this Code, such exemption must be passed by the board of directors; the date of passage by the board of directors, period of exemption, conditions exempted from, any independent director objections or reservations, etc. must be disclosed to the shareholder meeting and in the annual report. This must be done to assist shareholders in evaluating whether the board's resolution is appropriate or not, to avoid arbitrary or suspicious exemptions occurring, to make certain that all exemption situations receive appropriate control and management, and to protect the Company.

Article 13: Disclosure methods

This Code shall be disclosed on the Company website; the same applies to any amendments.

Article 14: Effect

This Code takes effect once passed by the board of directors and shall be reported to the shareholder meeting; the same applies to any amendments.