Performance Appraisal System

• We respect professionalism and care about each employee’s career development. Centered around corporate culture, we provide diverse development and learning opportunities for employees to leverage their professional competencies and achieve their potential.

• Our transparent performance management system (goal management and competency management) helps employees set development directions and career planning.

1. 1. New Employee Education and Mentoring System: After new employees complete training, mentors and department managers regularly check in on their work status and conduct a three-month evaluation, providing timely feedback and assistance.
   2. Performance Management: According to the performance management policy, evaluations are conducted twice a year, with 70% based on key performance indicators (KPIs) and 30% on competency assessments. These evaluations serve as the basis for salary adjustments and bonus or incentive programs.
   3. Performance Appraisal Feedback Mechanism: Evaluators provide specific, actionable feedback, guidance, and suggestions after assessments through performance interviews.

Performance Evaluation

Note: Participation rate refers to the percentage of employees who are required to participate in the performance evaluation according to the performance management guidelines and who actually participate in the evaluation.

To continuously promote sustainable development and incentivize the management team to actively achieve sustainability goals, the company has, since 2024, incorporated ESG performance into the performance evaluation indicators for senior management (including the President, Vice Presidents, or other equivalent positions).

The Company’s “Sustainable Development and Risk Management Task Force” is supervised by the President and is responsible for the planning, implementation, and oversight of sustainability-related matters, including the compilation and review of sustainability information. Under this task force, three functional sub-groups/teams have been established: “Corporate Governance,” “Sustainable Finance,” and “Social Engagement.” Departments participate in the respective sub-groups/teams based on their functions and responsibilities to carry out sustainability initiatives.

Diamond Biofund, as approved by the Remuneration Committee and the Board of Directors, has incorporated ESG-related key performance indicators (KPIs) into the annual performance bonus evaluation of senior management (including the President, Vice Presidents, or other equivalent positions), with a minimum ESG-related performance weighting of 5%. These indicators are linked to the achievement of specific sustainability goals.

In addition, department heads responsible for ESG-related tasks also have their annual performance bonuses evaluated based on ESG indicators. This approach aims to enhance the substantive involvement and execution capacity of all departments in sustainability issues, thereby implementing the company’s sustainability strategy.

1. Succession Planning for Board Members

The election of the company’s directors follows a candidate nomination system, with directors selected by the shareholders’ meeting from the list of director candidates. Board members generally possess professional knowledge and skills in areas such as business, finance and accounting, management, or industry-specific expertise. During their tenure, they are required to complete at least 6 hours of continuing education annually to help them continuously acquire new knowledge, maintain their core values, and enhance their professional competencies.

2. Succession Planning for Key Management Positions

The company values succession planning for management. In planning for succession, in addition to having operational management capabilities, professional skills, and outstanding performance, alignment with the company’s values and core competencies—such as integrity, innovation, professionalism, and performance—are essential.

Currently, there are 11 key management personnel at the managerial level and above, each with a job description and job plan. A designated acting manager is trained to fill in when needed. The company utilizes its existing performance evaluation system to assess and review suitable future successors, facilitating development and progress. The Human Resources Department is responsible for planning and execution, regularly reporting to the Chairman.
“Innovation” and “learning from successful experiences” are crucial in the succession plan, with specific practices and implementations as follows:

• Strategic Management Meetings for Senior Executives: The top executive regularly convenes strategic planning and execution review meetings with senior executives from various functions to ensure the achievement of company goals.
• Task-Oriented Functional Projects: Through cross-departmental collaboration, the company has held six sessions of the “Asia Pacific Biotech Investment Forum” since 2014, hosting 32 keynote speeches, 8 panel discussions, inviting 38 companies to present their R&D progress, and successfully facilitating nearly 60 matchmaking meetings.
• Diverse Learning Organization: A monthly expert sharing meeting, personally hosted by the top executive, where department heads share their expertise or recent project experiences, fostering mutual learning through professional presentations and discussions.
• External Consultant Guidance Meetings: The “Diamond Lecture” is held once in a while, with this year’s theme focusing on new drug development, where professional consultants lead the team in-depth discussions on every detail of the new drug development process.
• Each year, the company conducts a regular assessment of managers and potential successors to maintain a sufficient talent pool for succession.