To prevent conflicts of interest, Avalue has established recusal requirements in its Rules of Procedure for Board Meetings, Audit Committee Charter, Remuneration Committee Charter, Sustainability Development Committee Charter, and Ethical Corporate Management Best Practice Principles. The Company also implements conflict prevention and management through meeting procedures, information disclosure, related-party transaction controls, and whistleblowing and grievance mechanisms.
In the operation of the Board and its functional committees, directors, managers, and other attendees are required to proactively disclose the material details of any interest they or their represented legal entities, spouses, relatives within the second degree of kinship, or controlled or affiliated companies may have in an agenda item. Where such an interest may be detrimental to the Company, the individual may not participate in discussion or voting, must recuse themselves during deliberation and voting, and may not exercise voting rights on behalf of another director. Identification in advance, disclosure during meetings, and recusal from voting reduce the risk that personal or related-party interests may influence corporate decisions.
The Chairperson of Avalue does not concurrently serve as President or Chief Executive Officer. The separation between Board oversight and management execution strengthens checks and balances in corporate governance. Directors or managers who engage, for themselves or others, in activities falling within the Company’s scope of business must obtain prior approval from the shareholders’ meeting or the Board as required by law. Related-party transaction information is disclosed in accordance with securities regulations and internal policies, ensuring appropriate oversight of material transactions and potential conflicts of interest.
In daily management, the Code of Ethical Conduct for Directors and Managers requires directors and managers to avoid situations in which personal interests interfere or may interfere with the overall interests of the Company. They are also prohibited from using their positions, Company resources, or undisclosed information to obtain improper benefits for themselves, others, or affiliates. Avalue further reduces conflict-of-interest risks in procurement, sales, supplier relationships, customer transactions, and major investment decisions through ethical management communication, internal controls, approval procedures, and clearly defined responsibilities.
Avalue has also established the Ethical Corporate Management Best Practice Principles and Code of Conduct, which define procedures for preventing unethical conduct. In addition, the Company maintains bilingual Chinese and English Procedures for Handling Reports of Illegal, Unethical, or Dishonest Conduct as the basis for receiving, investigating, and resolving whistleblowing cases. Employees, suppliers, customers, and other stakeholders may report illegal, unethical, dishonest, or suspected conflict-of-interest conduct through designated channels. The Company accepts and processes such reports in accordance with established procedures to ensure that potential conflicts are disclosed, investigated, and remediate in a timely manner.
Avalue discloses related-party transactions, Board member information, major shareholder lists, relationships among the top ten shareholders, major suppliers, and major customers through its annual report, consolidated financial statements, and the Market Observation Post System. These disclosures enhance transparency and facilitate review by shareholders, investors, and other stakeholders. No material conflict-of-interest incidents occurred in 2025. Going forward, the Company will continue to strengthen prevention and management through policies, education, internal controls, whistleblowing mechanisms, and information disclosure, thereby protecting the rights and interests of the Company, its shareholders, and all stakeholders.
Information regarding affiliated enterprises has also been reported and published on the information filing website designated by the Financial Supervisory Commission.
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