CSR Concept

We inherited the management concept of our parent company, LCY CHEMICAL CORP., dedicating ourselves to utilizing resources effectively to provide value for our customers and stakeholders. We offer customers reliable resolutions through innovation and speed, a safe, healthy and humanitarian working environment for our employees, and satisfy our employees and shareholders under the principles of fairness and performance. Execution Principles



Governance Integrity

LCY GROUP understands the importance of operational transparency and corporate governance. Thus, the organization structure of the corporation is set and executed according to the Company Act, Securities and Exchange Act, and other relevant laws and regulations. Under this structure, we continue to enhance our management performance, protect the rights of investors and other stakeholders.

In order to improve the governance Integrity, board of directors approved the Integrity Governance Policy on July 19, 2017. Untrustworthy behavior, illegitimate interest, and relevant behavior shall be prohibit when directors, managers and employees perform business practices and duties.

General Manager's Office is the business integrity management of the exclusive sector and reports to the board of directors on a regular basis. All departments concerned have stipulated respective Best-Practice Principles to assure faithful fulfillment of Integrity principles.

No complaints have been received since we set up the whistleblowing channel.
Accusation reporters' mailbox: gmlcyt@lcygroup.com



Board of Directors

The Board of Directors is responsible for the supervision, appointment, and guidance of management; it is also responsible for the overall corporate operation. Furthermore, the Board of Directors ensures a well-rounded supervision mechanism and strengthens managerial capacity in an effort to maximize shareholder equity.

We have 7 seats on the Board of Directors, all elected by shareholders. Among the 7 directors, 3 are independent directors, 1 is female. The Articles of Incorporation were amended on Aug. 21, 2017. In the amendment, the Board of Directors has to be nominated in prior before shareholders select members of the Board of Directors from the list of candidates according to the Regulations on the Election of the Board of Directors.

The shareholding ratio of the member of the Board of Directors will be restricted according to the legal regulations of our authority, and all members of the Board of Directors are insured with liability insurance. The term of this Board of Directors will last from Aug. 21, 2017 to Aug. 20, 2020.

Remunerations to directors are paid according to Article 26 and Article 30-1 of the LCYT Articles of Incorporation, where directors are awarded 2% of the annual pre-tax net income, signifying that remuneration benefits of the Board are in positive correlation with annual earnings. Making shareholder first our apportionment of profit principle.



The Structure of Board of Directors
Title Name & Experience Competency

Chairman

SR Wang
Representative of LCY CHEMICAL CORP.

  • Bachelor of Chemistry, Tunghai University
  • General Manager, LCY TECHNOLOGY CORP.
  • Vice President of Methanol & Solvent BU, LCY CHEMICAL CORP.
  • Director of Thermoplastic Elastomers BU, L CY CHEMICAL CORP.

Operation
Industry Analysis
Leadership
Decision Making
Marketing
Risk Control
International

Director

Gavin Song
Representative of LCY CHEMICAL CORP.

  • EMBA, National Cheng Chi University
  • Vice President of LCY TECHNOLOGY CORP.
  • Vice President of High Performance Plastic BU, LCY CHEMICAL CORP.

Operation
Risk Control
Industry Analysis
International
Marketing

Director

Charles Wei
Representative of LCY CHEMICAL CORP.

  • Bachelor of Business Administration, Fu-Jen Catholic University
  • Accounting & Finance Supervisor, Spokesperson, Board of Director, LCY CHEMICAL CORP.

Finance & Accounting
Risk Control
Decision Making

Director

Regina Chung

  • EMBA of Wharton School of the University of Pennsylvania
  • Senior assistant of Corporate Finance Trading Room, CityBank

Finance & Accounting
Risk Control
International

Independent
Director

SC Liu

  • Bachelor of Accounting, Soochow University
  • Chair Professor of Management, Fo Guang University

Operation
Finance & Accounting
Risk Control

Independent
Director

Whi Hua Tu

  • Bachelor of Accounting, National Cheng Kung University
  • General Manager, Transformational Chemistry Lives

Finance & Accounting
Industry Analysis
Leadership
Decision Making

Independent
Director

James Chu

  • EMBA, National Central University
  • Key Account Manager of Sustainable solutions, DuPont Taiwan Limited

Risk Control
Industry Analysis
International



  • Audit Committee

    We will constantly strengthen our corporation governance to gear ourselves toward international standards. We have founded an Audit Committee according to law, which is affiliated under the Board of Directors, to replace the original duty of supervisors.
    main responsibility is to assist the board in overseeing the following:

    • (1)Integrity of the Company's financial statements
    • (2)Certified Public Accountant ' appointment (termination) and integrity/performance
    • (3)Internal risk controls
    • (4)Company's compliance with legal and regulatory requirements
    • (5)Company's existing and potential risks

    There are three members in the Audit Committee, who are all independent directors. The committee is operated under the Organic Regulation of the Audit Committee. The term of this Audit Committee will last from Aug. 21, 2017 to Aug. 20, 2020.

    Title

    Name

    Experience

    Note

    Convener

    SC Liu

    Bachelor of Accounting, Soochow University
    Chair Professor of Management, Fo Guang University

    2017/8/21

    Members

    Wei Hua Tu

    Bachelor of Accounting, National Cheng Kung University
    General Manager, Transformational Chemistry Transform Lives

    2017/8/21

    Members

    James Chu

    EMBA, National Central University
    Key Account Manager of Sustainable solutions, DuPont Taiwan Limited

    2017/8/21


  • Remuneration Committee

    To enhance corporate governance and to keep in line with international standards, we established a Remuneration Committee. The Committee assists the Board of Directors in reviewing corporate payroll structure, the performance and salary compensation of directors and managerial officer, and employee benefit policy and programs. The reviews serve as an important basis to attract, encourage, and maintain talented employees, in hopes of maximizing benefits for our shareholders.

    Members of the Remuneration Committee are appointed by the Board of Directors and operated under the Organic Regulation of the Remuneration Committee. The 4th Remuneration Committee is composed of independent directors and its term lasts from Aug. 21, 2017 to Aug. 20, 2020. Its main duties include:

    • (1)Reviewing the Organic Regulation of the Remuneration Committee regularly
    • (2)Establish and regularly review the performance evaluation and remuneration policy, system, standards, and structure of directors and managerial officers.
    • (3)Decide compensation for directors and managers and carry out periodic evaluations

    There are three members in the Audit Committee, who are all independent directors. The committee is operated under the Organic Regulation of the Audit Committee. The term of this Audit Committee will last from Aug. 21, 2017 to Aug. 20, 2020.

    Title

    Name

    Experience

    Note

    Convener

    James Chu

    EMBA, National Central University
    Key Account Manager of Sustainable solutions, DuPont Taiwan Limited

    2017/8/21

    Members

    SC Liu

    Bachelor of Accounting, Soochow University
    Chair Professor of Management, Fo Guang University

    2017/8/21

    Members

    Wei Hua Tu

    Bachelor of Accounting, National Cheng Kung University
    General Manager, Transformational Chemistry Transform Lives

    2017/8/21


  • Audit Dept

    The Audit Dept. is an independent unit with designated personnel who report directly to the Board of Directors. It is responsible for the examination and assessment of the internal controls of the Company’s financial, sales, operations and management departments. All departments, including those of the subsidiaries, are subject to its audit.

    In accordance with corporate governance, audit reports are submitted on a regular basis and reviewed by the Chairman, as well as presented to the Audit Committee and the Board of Directors by the Audit Manager. Special audit projects are implemented as needed. These audits enhance internal control and provide timely recommendations for future improvements.


  • Financial Information Disclosure and Investor Relations

    The financial information of LCY TECHNOLOGY is published on the company website(http://www.lcyt.com)to provide complete, up-to-date, and fair disclosure of financial information and corporate governance to the public. Stakeholders can download annual reports, financial reports, financial information, corporate governance rules, and stock price and dividend information from company website. All information regarding our operation status and financial figures are complete, up-to-date, and transparent.

    Shareholders can also contact us by telephone or email. In addition to answering questions in detail, we also respond to all suggestions made at the shareholder’s meetings. We make announcements on Competent authority in a timely manner.

    Other than financial information, strategies for corporate sustainable development and potential risks and opportunities in business operations have become the focus of major institutional investors around the world in recent years. LCYT has always been cognizant of communicating with our investors; We make efforts in improving these shortcomings and seek sustainable development to safeguard the long-term investment value of our shareholders.

    We provide convenient channels of communication for our shareholders and stakeholders. We have also established the spokesperson system and created a web forum for investors to provide feedbacks, so that communication and advice could be offered. The mechanisms for shareholders or employees to make suggestions or give advice on business directions are:

    • (1)Shareholders can voice their opinions through shareholder’s meetings, company website or spokesperson.
    • (2)Employees can communicate and propose their ideas through established internal mechanisms.
    • (3)Stakeholders can propose suggestions through the reporting channel of the corporation’s website.

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