The Audit Committee

Audit Committee

Convener: Yiu-Cho Chin

Member: Bin-Xi Lin

Member: Hung-Lin Lai


Audit Committee Charter


Responsibilities of the Audit Committee

The primary purpose of the Audit Committee is to oversee the following:

1. The fair presentation of the company’s financial statements.
2. The appointment, dismissal, independence, and performance of the certifying accountant.
3. The effective implementation of the company's internal control system.
4. The company’s compliance with relevant laws and regulations.
5. The management of existing or potential risks faced by the company.

The key focus areas of the Audit Committee's annual work are as follows:

1. Establish or amend the internal control system.
2. Assess the effectiveness of the internal control system.
3. Establish or amend important management policies or operational procedures, such as procedures for the acquisition or disposal of assets, engaging in derivative transactions, lending funds to others, or handling major financial activities like endorsements or guarantees.
4. Matters involving conflicts of interest for directors.
5. Significant asset or derivative transactions.
6. Significant loans, endorsements, or guarantees.
7. The raising, issuance, or private placement of equity-related securities.
8. The appointment, dismissal, or compensation of certifying accountants.
9. The appointment or dismissal of financial, accounting, or internal audit officers.
10. Financial reports.

 

Review of Financial Reports

The interim financial statements have been audited by KPMG Taiwan, and a review report has been issued. After being reviewed by the Audit Committee, no discrepancies were found.

Assessment of Internal Control System Effectiveness

The design and effectiveness of the internal control system have been evaluated by individual departments, reviewed by the audit department, and validated as effective by the Audit Committee.

Revisions to the Internal Control System

Proposed amendments to the internal control system and operational procedures submitted by the relevant departments were discussed and approved by the Audit Committee.

Execution for the Year and Opinions or Resolutions of Independent Directors on Major Proposals**
In accordance with Article 14-5 and Article 36, Paragraph 1, Subparagraph 2 of the Securities and Exchange Act, the opinions or resolutions of independent directors on major matters for the year are as follows:

Date

Proposal Content Resolution Outcome
2025.03.06

1. Approved the 2024 internal control system declaration.
2. Approved the 2024 financial statements.
3. Approved of the proposal to change the certifying CPA.
4. Approved the review of the certifying accountant's fees for 2025.
5. Approved of the audit fee for the certifying CPA for the year 2025.
6. Approved the business report (including the 2024 business report and the 2025 business plan).
7. Approved the 2024 earnings distribution.
8. Approved of the amendments to the “Articles of Incorporation.”
9. Approved of the partial amendments to the “Audit Committee Charter.”
10. Approved of the earnings distribution proposal of the subsidiary, BONTEQ Philippines.

All members of the Audit Committee did not express any objections or reservations on the listed proposals, and each proposal was unanimously approved by all committee members.

2025.05.08 1. Approved the bank credit proposal.
2. Approved the consolidated financial statements for the first quarter of 2025.
3. Approved of the establishment of the “Operational Guidelines for Financial and Business Transactions among Related Parties.”
4. Approved of the personnel adjustment of the Accounting Supervisor.

5. Approved of the appointment of the Audit Supervisor.

All members of the Audit Committee did not express any objections or reservations regarding the listed proposals, and each proposal was unanimously approved by all committee members.
2025.08.07 1. Approved of the nomination of the Convener of the Second Audit Committee.
2. Approved the consolidated financial statements for the second quarter of 2025.
The entire Audit Committee did not express any opposition or reservations regarding the proposals, and all proposals were unanimously approved by the committee members.
2025.11.06 1. Approved the bank credit proposal.
2. Approved the consolidated financial statements for the third quarter of 2025.
3. Approved the audit plan for 2026.
4. Approved the audit plan for the significant subsidiary, BIOTEQUE MEDICAL PHIL, INC. (BMPI), for 2026.
5. Approved of the appointment of the Audit Supervisor.

6. Approved the budget for 2026.
7. Approved of the addition of the internal management procedures for the “Internal Control System.”
8. Approved of the addition of the internal management procedures for the “Internal Audit Rules.”
9. Approved of the additional investment project for medical soft bags and related equipment.
10. Approved of the self-constructed warehouse project of the major subsidiary, BIOTEQUE MEDICAL PHIL. INC. (BMPI).
The Audit Committee approved the proposals listed above, with the exception of the fifth proposal, which was slightly adjusted. The remaining proposals received no opposition or reservations from any committee members and were unanimously approved.

Requirement

Name Professional Qualifications and Experience Independence Status (Note 2) Number of Independent Director Positions Held in Other Publicly Listed Companies
Independent Director Bin-Xi Lin

Profession: Medical License
Relevant Industry Experience: Healthcare
Attending Physician, Department of Nephrology, Shin Kong Hospital"

The company has obtained written declarations from each independent non-executive director, confirming their independence in relation to the company and their immediate family members.

No

Independent Director Hung-Lin Lai Profession: Professor of Chihlee University of Technology
Relevant Industry Experience: Finance and Accounting
Professor of Chihlee University of Technology
Independent Director, Kuang Hong Technology Co., Ltd. - Independent Director
The company has obtained written statements from each independent non-executive director, confirming their independence in relation to the company and their immediate family members.

Independent Director, Kuang Hong Technology Co., Ltd. - Independent Director

Independent Director Yiu-Cho Chin Primax Electronics Ltd. - Senior Vice President
China Bills Finance Corporation-Director and General Manager
National Association of Certified Valuator and Analysts- Chairperson
Kinik Company- Senior Consultant
The company has obtained written declarations from each independent non-executive director, confirming their independence as well as that of their immediate family members in relation to the company." Pacific Hospital Supply Co., Ltd. - Independent Director