Risk Management

The Risk Management Committee (RMC) is supervised by the Board of Directors and the Audit Committee and is responsible for overseeing the Company's risk management. Chaired by the General Manager, with the Head of the Sustainability, Environment, and Safety & Risk Management Department serves as the Secretary-General and department heads as members, the RMC meets every six months to discuss material risks and related control measures. It aims to establish a proactive risk management mechanism that enables timely responses to risk events, mitigates or avoids impacts, and ensures effective management of operational risks across all aspects, thereby supporting the Company's sustainable operations.

MetaAge categorizes risks into eight areas: sales, product and technical services, finance, information security, compliance, human resources, climate, and supply chain. A total of 33 potential risks are identified under these categories. The Company evaluates risk levels using specific indicators, regularly reviews the risk management framework, and formulates response strategies and control measures. The status and progress of the RMC's activities are reported to the Board of Directors annually.

Risk Management Process

MetaAge identifies and assesses all potential risks through its risk management procedures and develops corresponding strategies and control measures to mitigate or prevent potential impacts from risk events.

Establishing a Risk Management Environment: Understand the current business scope and identify major risks associated with the future development of new business areas, while maintaining a clear understanding of the Company's strengths and weaknesses.
Risk Identification: The Risk Management Committee is responsible for identifying risks that may affect the Company's sustainable operations and the achievement of business performance objectives. Once risks are identified and confirmed, they should be assessed and addressed accordingly.
Assessment of All Potential Risks: The Risk Management Committee shall assess the identified risks, including the potential impact and likelihood of occurrence. The level of risk treatment shall be evaluated with reference to the risk tolerance of each risk item.
Development of Response Strategies and Measures: Evaluate available risk treatment strategies, formulate and implement appropriate action plans, and clearly define the selected approach for managing each risk.
Supervision and Review: The risk management unit is responsible for overseeing the implementation of risk management. The Board of Directors ensures the effectiveness of the risk management policy by reviewing relevant risk management reports.
Internal and External Communication and Consultation: The Company has established effective communication and reporting channels within the risk management system to ensure that internal and external risk-related information is timely identified, assessed, and communicated.

Risk Assessment Results

MetaAge established the Risk Management Committee on August 5, 2021, and held its first risk management kick-off meeting on November 29 of the same year. Each year in the first quarter, the Company reports to the Board of Directors on the operations and scope of responsibilities of the Risk Management Committee, including risk categories, potential risks, impacts on corporate profit and loss, risk tolerance, response strategies, and the implementation of risk control measures. The 2025 risk management operations were approved by the Board of Directors on March 4, 2026.

The 2025 risk management operations were as follows:

In 2025, the Risk Management Committee (RMC) held two meetings to report the KRI achievement rates to the Chairperson and committee members. The Risk Management Committee also assessed the risk factors for the new year, 2026, and developed the Company's risk profile for the new year. The Committee approved “Agency Rights Stability” as the Company's major risk at the corporate level for the year.
The results of risk management implementation in 2025 included the management of a total of nine KRIs. The controlled items, implementation results, and achievement rates were as follows:
1. Product Technology Risk & Sales and Business Risk:
  - Number of major agency rights revoked: 0 items; achievement rate: 100%.
  - Business expertise & manufacturer preference - output value per employee of no less than NT$2.5 million: achievement rate: 123.8%.
  - Slow-moving inventory management - no inventory turnover not exceeding 120 days: achievement rate: 100%.
2. Financial Risk - no Financial losses below NT$1 million: achievement rate: 100%.
3. Information Security Risk - no service interruption time below one day: achievement rate: 100%.
4. Supply Chain Risk - no loss of goods below NT$500,000: achievement rate: 100%.
5. No Compliance Risk - Number of invalid contracts: 0; achievement rate: 100%.
6. Human Resources Risk - Labor inspection pass rate: 100%; no labor inspections were conducted in 2025.
7. ESG and Climate Risk - 2026 customer assessment pass rate: achievement rate: 100%.

Potential Risks and Response Strategies

MetaAge's Risk Management Committee consolidates risk assessment results from relevant business units, covering risk categories, potential risks, potential impacts on business performance, and response strategies. For moderate-risk areas and risk matters identified as priorities by individual business units, Key Risk Indicators (KRIs) are established and incorporated into the Committee's routine risk monitoring and management processes.