Corporate Governance Implementation Status

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• The Corporation has established "Guidelines for Corporate Governance" which are disclosed on the "Investor Relations" and the "Corporate Governance" sections of our corporate website, as well as on the Market Observation Post System. Revisions to our "Guidelines for Corporate Governance" were approved at the 24th meeting of the 9th Board (convened on March 16, 2022) and a shareholders' general meeting (convened on May 26, 2022).

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• The Corporation designated the Board Secretariat Division as the unit responsible for corporate governance, and set up an appropriate number of qualified corporate governance personnel according to Article 7-02-01 of the Corporation's Guidelines for Corporate Governance. The qualifications and duties of the Board Secretariat manager comply with the criteria for corporate governance officers. On June 11, 2025, the Board appointed Chief Secretary Barret Wang as Acting Board Secretariat and Corporate Governance Officer, taking office on June 12, 2025. Acting Board Secretariat and Corporate Governance Officer Barret Wang serves as the highest ranking officer responsible for corporate governance matters to protect shareholder rights and strengthen Board functions; he possesses legal qualifications and served in managerial capacities for more than three years, handling the legal, shareholding, and corporate governance affairs of listed companies. The main duties of the corporate governance officer are to handle Board and shareholder meeting matters in accordance with law, prepare meeting handbooks for Board and shareholder meetings, assist directors in taking office and continued training, provide directors with information necessary for implementation of business matters, and assist directors in complying with laws and regulations. Corporate governance implementations were reported at the 27th meeting of the 10th Board on June 11, 2025, and will be periodically reported to the Board every year.
• Main implementations for 2025 included:
  1. Assisting the Board or its committees with drawing up annual work plans and meeting agendas, and collecting, researching, analyzing, or providing related materials.
  2. Providing analysis and opinions on the legality, appropriateness, and feasibility of proposals to be deliberated by the Board or its committees, for reference by the Board and its committees during deliberations.
  3. Ensuring that the operations of the Corporation's shareholders' meetings, Board meetings, and committees do not violate laws or regulations, the Corporation's Articles of Incorporation, shareholders' meeting resolutions, and the Corporation's Guidelines for Corporate Governance.
  4. Assisting with deliberation, supervision, or other processes relating to the planning and review of systems for liaison and interaction between the Corporation and shareholders, employees, consumers, stakeholders, and the general public.
  5. Assisting with the general administrative affairs of shareholders' meetings and the calling of, notices for, holding of, and record-keeping for Board meetings and committee meetings.
  6. Ensuring that Board members have timely knowledge of material information by notifying Board members upon publication of such information.
  7. Formulating Board meeting agendas and notifying directors seven days in advance of meetings, convening meetings and providing meeting information, providing prior reminders of conflicts of interest, and compiling Board meeting handbooks within 20 days of meetings.
  8. Organizing at least six hours of director training courses within the corporate offices and assisting directors in organizing other training plans and courses.
  9. Assessing and taking out appropriate D&O liability insurance for directors, supervisors, and managers.
  10. Conducting performance assessments in accordance with the Corporation's Regulation of Self-Evaluation of the Board of Directors.
• Training undertaken by the Corporation's corporate governance officers in 2025 were as follows:

  Training Date	Hosting Organization	Course Title	Training Hours
  2025/8/6	Securities and Futures Institute, SFI	Integrity Management, Employee Fraud, and Whistleblowing (Including Gender Equality)	3
  2025/10/21	Independent Director Association Taiwan	Digital Empowerment and Innovation Transformation: Latest Trends and Case Analysis	3
  2025/11/12	The Greater China Financial and Economic Development Association	How the Board Ensures Sustainable Business: Focusing on Talent Identification and Development	3
  2025/11/13	Taiwan Corporate Governance Association	The Financial Impact of ESG Risks and Opportunities	3
  Accumulated training hours in 2025: 12 hours

• The Corporation has established a shareholder services unit under the Finance Department; this unit is responsible for providing shareholder services, handling matters relating to shareholders' meetings, making changes to Corporation registration details, and publishing information on shareholder matters in accordance with law.

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• A "Stakeholders Communications" sub-section has been established under the "Corporate Social Responsibility" section of our corporate website to uphold the rights of stakeholders by periodically assessing stakeholder categories, establishing designated units and communication channels for stakeholders, using appropriate communication measures to understand the reasonable expectations and needs of stakeholders, and providing fitting responses to major CSR issues of concern. Communication with stakeholders and handling of major disputes for 2024 were reported to the Corporation's 27th meeting of the 10th Board on June 11, 2025, and will continue to be reported to the Board on an annual basis.
• For more information on stakeholders, please refer to the "Stakeholder" sub section in the "ESG" section of our corporate website and the "Stakeholders and Material Topics" section in our sustainability report.

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• The Corporation has appointed Fubon Securities Transfer Agency Department as our professional shareholder service agency.

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• Since going public, the Corporation has been ranked among the top 5% of publicly listed companies by the TWSE Corporate Governance Evaluations for eight consecutive years (from 2017 to 2024).
• On December 27, 2024, the Company was awarded the CG6014 (2023) Corporate Governance System Evaluation "Excellent" certification organized by the Taiwan Corporate Governance Association, and the certification period is from December 27, 2024 to December 26, 2026.
• The Corporation continued to be included in the "FTSE4Good TIP Taiwan ESG Index" and was granted the right to use the "FTSE4Good TIP Taiwan ESG Index exclusive label" from December 23, 2024 to June 20, 2025, highlighting this recognition of our sustainability actions relating to E (Environment), S (Society), and G (Corporate Governance)
• The Corporation participated in the "2024 17th TCSA Award" hosted by the Taiwan Institute for Sustainable Energy and won the "Platinum Award", the highest level of the Corporate Sustainability Report Awards.
• Awarded the annual ranking of the 2025 world's 100 most sustainable corporations in a row, which was selected by Corporate Knights. THSRC is honored to be ranked 5th in the world, and also ranked first in both sectors of the "Transit and ground transportation group" and the "Transportation infrastructure industry".
• In 2021, we began implementing the Taiwan Intellectual Property Management System for verification of patents and trademarks and obtained TIPS Level A verification (effective until December 31, 2022). In order to maintain the validity of this qualification, we reapplied and successfully passed TIPS Level A verification in September 2024. This qualification is now valid until December 31, 2026.
• The Corporation's "Charter of the Sustainable Development and Nominating Committee" stipulates succession plans for Board of Director members. In order to pass on the professionalism and experiences of our Board members, the Corporation has organized plans for director successors through a variety of appropriate methods and has placed a list of director candidates in our talent pool database; nominees are submitted to the Board for review when appropriate and serve as a reference for the Board to nominate director candidates. For more information, please refer to the "Succession Plan for Board of Director Members" page under "Board of Directors" sub-section in the "Corporate Governance" section of our corporate website. Additionally, the Corporation plans annual training courses for directors in accordance with changes in external and internal environmental conditions and development needs to enhance the professional knowledge of new and returning directors and strengthen Board capabilities.
• The Corporation has also established succession plans for senior management in accordance with the "Succession Plan for Senior Management" passed by the 33rd meeting of the 8th Board on December 18, 2019, which is implemented through five stages (identification of key skills, availability of current talent, development of successors, evaluation of successors, and approval of management personnel), the purpose being to ensure sustainable management and growth, and establish a succession system for important management personnel to pass on the professionalism and experiences of important management personnel. In order to cultivate successors, the Corporation will conduct evaluations of management skills for all department managers, and will conduct management training courses once evaluations have concluded. Depending on availability of important management positions, operational goals, and organizational needs, these will be submitted to the Board for review following approval from the Chairman. For more information, please refer to the "Succession Plan for Senior Management" page under "Corporation Governance and Organizational Structure" sub-section in the "Corporate Governance" section of our corporate website.
• The Corporation's Guidelines for Corporate Governance stipulate that the Corporation shall devote attention to public policy, economic development, consumer rights and interests, community concerns, environmental protection and sanitation, public safety, and other public interest issues, to enhance the Corporation's image, and to faithfully fulfill its social responsibilities. The Corporation participates in social contribution through a number of measures, for example through subsidies to preserve jacanas and other wildlife, providing care to communities alongside the HSR line, and support of other environmental hygiene and public policies.
• The Corporation has established "Ethical Corporate Management Best Practice Principles," "Code of Ethical Conduct," "Code of Conduct," "Regulation of Whistle-Blowing System for Unlawful, Unethical Conduct and Dishonesty Behavior," "Regulations for Management of the Prevention of Insider Trading," "Reward and Discipline Regulation," "Grievance Regulation," and "Procurement Staff Ethical Regulation," which not only govern the ethical standards and codes of conduct for Corporation personnel when carrying out their duties, but also ensure that the corporate activities of the Corporation do not interfere with social contributions, thus maintaining the rights of the Corporation and our shareholders, fulfilling our corporate social responsibilities, and helping our stakeholders to understand relevant regulations.
• The Corporation has established an Occupational Safety and Health Policy and is committed to compliance with government health and safety laws, regulations, and procedures to ensure the safety of passengers, employees, and other members of the public. We periodically conduct employee health checks, promote health enhancing activities, and implement health management every year to enhance the physical and mental health of employees.
• The Corporation has established a Safety Policy, relevant procedures, and implementation results, which are regularly reviewed each year to further our goal of continued improvements to safety. All employees have to undergo training in accordance with our safety regulations and operating procedures so that they can continue to present and be equipped with attention to and recognition of safety measures when carrying out daily tasks. Our contractors are carefully selected, supervised, and managed to ensure that their operations fulfill the Corporation's safety goals.
• The Corporation is committed to appropriate utilization of internationally recognized risk assessments and safety management methods in our safety management system to actualize control and minimize hazards. We are committed to maintaining the highest quality control standards and are active in exercising safety management policies as we strive to implement various health and safety measures.
• The Corporation has established a Supply Chain Management Policy which states that when collaborating with suppliers, we should gradually integrate environmental, social, and corporate governance needs into our supplier regulations in hopes of creating a more sustainable collaboration with our suppliers. Our management policies are disclosed on our corporate website.
• Since 2004, the Corporation has complied with the "Guidelines for Corporate Governance" approved by the shareholders' meeting and taken out liability insurance for all directors, supervisors, and managers with respect to their liability under the law for their actions when exercising their duties. D&O liability insurance policies were approved by the 32th meeting of the 10th Board on October 15, 2025. Insurance application procedures have since been completed, and the total insurance amount came to NT$ 0.9 billion.
• The continued education of all current Corporation directors complies with the number of training hours stipulated by the Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies. In 2024, Corporation directors underwent a total of 150 hours of training. The detailed is in Director training status.

• The Corporation was ranked among the top 5% listed companies in the 11th Corporate Governance Evaluations (2024). We list improvements to unachieved evaluation items below:

  Item	Evaluation Indicators	Improvements
  1.17	Does the company have no government agency or single legal entity and its subsidiaries accounting for more than one-third of the seats on the board of directors? [If the company does not have a government, legal person or its representative as a director, one additional point will be added to the total score. ]	The Corporation's board of directors currently does not have any government agency or single legal entity or its subsidiaries accounting for more than one-third of the seats on the board of directors. However, not all directors are natural persons, so they do not meet the bonus requirements for this indicator.
  2.6	Did the company's board members include at least one female director? [If directors of each gender accounted for at least 1/3 of all of the directors, one additional point will be added to the total score. ]	The Corporation's 10th Board currently includes two female directors but no female independent directors. In future, we will seek to increase the number of female directors so as to achieve gender equality and raise the ratio of female directors and independent directors.
  2.7	Did the company's independent directors reached one-third or more of all of the directors.	The Corporation's 10th Board has five independent directors, but does not reached one-half or more of all of the directors.
  3.21	Did the company's annual report disclose the individual remuneration details of the general manager (chief executive officer) and assistant general manager(s)?	The Corporation temporarily maintains summary disclosures for remuneration of our president and managers ranking above vice president.