Employees are the most important assets of the Company and one of the main forces powering the growth of the Company. The Company aims to create an environment with two-way communication and high-quality compensation to attract talent, fulfill the needs of employees, and protect the basic human rights of employees and all stakeholders.The Company abides to internationally recognized labor rights, including freedom of association, collective bargaining rights, care for the underprivileged, no child labor, elimination of all forms of forced labor, and elimination of recruitment and employment discriminations, and makes sure that recruitment policy does not permit discrimination based on gender, race, social status, age, marital and family status, implementing fair and just recruitment, employment terms, salary, benefits, training, evaluation, and promotion. The Company’s operations and management shall not infringe any labor rights and must protect human rights. There were no cases of the use of child labor or forced labor in 2022.

Manpower Structure

As of the end of December 2022, the Company had 566 employees and does not have temporary or part-time employees. Most employees are between 30 and 50 years old and male employees account for 78%. 100% of the supervisors in management roles have Taiwanese nationality and were promoted from entry level. They receive training on rotations based on organizational and business requirements. The Company hires sufficient numbers of people with disabilities and indigenous peoples in accordance with regulations. We comply with occupational safety and health regulations in Taiwan and foreign countries as well as the Labor Standards Act for labor-related matters. We do not permit discrimination against employees and indigenous peoples and there have been no violations of employees' human rights. As of the end of December 2022, the Company had appointed 5 employees with disabilities and 7 employees with indigenous peoples status.

The total number of employees is provided in the table below (by factory, gender, and age):

The employment status of each category of employee is shown in the table below (by gender, job title, indigenous peoples status/disabilities, and workplace statistics):

Non-employee workers are not employees of the Company; at the Taipei Head Office, non-employee workers are caretakers, as the cleaning company is contracted by to provide two workers responsible for cleaning-related work every day.

Talent Recruitment and Turnover

The Company upholds the principles of gender equality and non-discrimination. Our recruitment policy does not permit discrimination based on gender, race, age, marital and family status and we do not allow the use of child labor. When new employees report for duty, we provide pre-employment training, which includes an introduction of the work environment of each department and organization, business philosophy and professional ethics of the corporate culture, ethical corporate management and code of conduct, description of the management system and welfare in important HR rules and human rights policies, information system operations, occupational safety and health, and other basic guidelines to help new employees learn and adapt to the work environment. From January to December 2022, 77 employees reported for duty including foreign employees. Among them are 19 female employees and 58 male employees.

Number of new hires in the last three years (by gender)：

Total employee turnover in the last three years (by region, gender, and age)：

The Company upholds the principles of gender equality and non-discrimination. Our recruitment policy does not permit discrimination based on gender, race, age, marital and family status and we do not allow the use of child labor. Regardless of training, remuneration, or promotion opportunity, the Company treats every employee (regardless of gender) to the same standards.
Moreover, to ensure harmonious labor relations and compliance with related laws and regulations, the Company has established complaint handling measures. To prevent workplace sexual harassment, protect gender equality and human dignity, the Company has also established Measures of Prevention, Correction, Complaint, and Punishment of Sexual Harassment at Workplace according to the Regulations for Establishing Measures of Prevention, Correction, Complaint, and Punishment of Sexual Harassment at Workplace, which is announced on the electronic information platform for employees’ reference. Employees can file complaint via phone or mailbox. The Company has also formed "Sexual Harassment Investigation Taskforce" to handle related complaints. In 2022, the Company did not receive any complaints of infringement of privacy from clients, and there were no cases of discrimination or complaints.

·Freedom of Association and Collective Bargaining

The Company values human rights and complies with labor related laws and regulations, and constructs multiple grievance channels, which are handled by supervisors of all levels and the human resources unit, while also establishing complaint handling measures to make sure that all complaints are handled in a confidential, timely, and secret manner, ensuring smooth channels of communication between employees and supervisors. The Company respects its employees' freedom of association. In 2022, no employee came forward to organize a union.

Salary and Benefits

The basic salary of employees of the Company is never lower than the statutory minimum wage. The salary is determined by academic records as well as professional skills and experience, but is not determined by gender, region, ethnicity, or political views. The Company sets the appropriate salary structure for different professional ranks. All salaries, allowances, performance bonuses, etc. are provided in accordance with the standards set in the Labor Standards Act. We regularly survey the salaries in the industry to ensure that the overall salary of the Company is in line with the market standard and thus maintain competitiveness in regards to salary. If the Company makes a profit in the year, we pay remuneration to employees in accordance with laws. We also distribute year-end bonuses based on the Company's annual business performance and employees' personal performance to reward and motivate employees.

2022 salary ratio table：

Overview of the average salary of the Company's non-management employees：

The Company may terminate a labor contract in one of the following situations:
1.Where the employers' businesses are suspended, or has been transferred.
2. Where the employers' businesses suffers an operating losses, or business contractions.
3. Where force majeure necessitates the suspension of business for more than one month.
4. Where the change of the nature of business necessitates the reduction of workforce and the terminated employees can not be reassigned to other suitable positions.
5. A particular worker is clearly not able to perform satisfactorily the duties required of the position held.
6. When other reasons of termination of labor contract arise.
Where an employer terminates a labor contract the provisions set forth below shall govern the minimum period of advance notice:
1. Where a worker has worked continuously for more than three months but less than one year, the notice shall be given ten days in advance.
2. Where a worker has worked continuously for more than one year but less than three years, the notice shall be given twenty days in advance.
3. Where a worker has worked continuously for more than three years, the notice shall be given thirty days in advance.

Employees are the Company’s most important assets. In addition to having a comprehensive personnel system, the Company also insists on providing employees diverse and complete benefits. All systems of Evergreen Steel must be implemented on the basis of reasonableness. The attendance, leave, and retirement of employees are processed in accordance with related regulations of the Labor Standards Act. We also distribute year-end bonuses based on the Company's annual business performance and employee performance evaluations. The Company has maintained good labor relations with reasonable and institutionalized HR and benefits systems. The labor-management agreements and employee benefits protection measures are as follows:

The Company has established the "Supervisory Committee of Workers' Retirement Reserve Fund" for the employee retirement system. It was approved in the Taoyuan County Government (1987) Fu-She-Lao-Zi No. 10389 Letter (府社勞字第 10389 號函). The Company established the "Employee Retirement Regulations" and appropriates 6% of the employees' total monthly salary to the dedicated account in the Bank of Taiwan as the pension reserve fund in accordance with Article 2 of the Regulations for the Allocation and Management of the Workers' Retirement Reserve Funds.
According to the Labor Pension Act, the employer shall pay 6% of the employees' monthly salary as the pension reserve fund to the employees' personal pension account for all employees who opt for the pension system under the Act starting from July 1, 2005.

The Company proactively complies with government policies, encouraging childbirth, as well as those eligible to apply for paternal leave. The Company provides employees with parental leave in accordance with the Labor Standards Act. Employees that meet the criteria of being employed at the Company for at least one year, having children under the age of three, and having a spouse currently employed may apply for unpaid parental leave (up to 2 years). The Company shall retain the position for the employee during the unpaid parental leave, and employees may also apply for reinstatement after the expiry of the parental leave. All regulations regarding employees' unpaid parental leave are established in accordance with government regulations.

The applications for unpaid parental leave and reinstatements in the last three years are shown in the table below：

Employee Development and Training

Talent Cultivation

The Company attaches great importance to the physical and mental health of employees, workplace safety, environmental protection, and employee compliance with moral codes and workplace ethics. We have created a comprehensive training system to provide employees with sufficient training. We cultivate excellent employees with the comprehensive training system to ensure smooth operations of the Company. As employees are the most important assets of the Company, we value their rights and opinions and pay special attention to their safety and health. The Company always pays attention to the safety and health of the work environment, and takes care of the employees in all aspects to cultivate employees and help them develop and improve themselves. We want employees to be happy at work and pursue their personal development so that we can make Evergreen Steel a happy enterprise with harmonious labor relations.

The Company provides diverse training programs including orientation training for new employees, general training, professional training (training for business requirements and training organized for specific activities), and management training.

We plan courses each year for employees to participate in internal and external professional training related to their work. Employees improve their professional skills through professional training and help the Company win contracts, contractor qualifications, and professional certifications. We offer diverse learning resources to help employees improve their professional skills and develop their potential. We also strengthen employees' continuous employment potential and assist in professional competency management and lifelong learning programs.

1. Pre-employment training for new employees:

   The program is organized by the Human Resources Department. When new employees report for duty, we provide pre-employment training, which includes an introduction to the organization and work environment of each department, business philosophy and ethics, description of the management system, welfare system and important HR rules, information system operations, occupational safety and health, and other basic guidelines to help new employees learn and adapt to the work environment.

2. On-the-job training for employees of each department:

   To support the Company's long-term development, business requirements of each unit, and the regulatory requirements for employees of different professional practices, each department formulates the employee training plan and budget for the following year at the end of each year, and implements them after obtaining approval. The courses include general courses and professional and management competency training. Each unit implements regular quarterly progress reviews in accordance with the annual training plan, and adjusts its response measures where necessary to implement the plan and improve the overall training effectiveness.

3. Risk management, occupational safety and health, and health talks:

   The Occupational Safety and Health Management Department, Supervisor Department (Supervisory Section), and medical units will, from time to time, organize seminars and drills for traffic safety, first aid, and fires/earthquakes as well as health talks on healthcare, food safety, and stress relief.

4. Language training subsidies:

   The Company provides subsidies for training expenses to encourage employees to improve their language skills. The Company also provides every employee with subsidies for one TOEIC test in accordance with the internal promotion system.

Annual Training Performance

Average Hours of Employee Education and Training over the Past 3 Years:

Performance Management and Development

We evaluate the work skills, work performance, and conduct of employees in a fair, impartial, and reasonable manner. The Company requires supervisors of each level to produce records of their employees' work, conduct, and service attitude on a regular basis and implement the performance evaluations in March and September each year to review the results. All employees will be reviewed based on their employee levels and the aforementioned principles, and the performance evaluation results are not sorted by gender-based differentiation. The performance evaluation results of all employees are sorted by employee level with no gender-based differentiation. All evaluation results are kept by the HR unit as confidential documents, and are not disclosed Except with the knowledge of the evaluator and the HR supervisor. The evaluation results are used as references for promotions, salary adjustments, and distribution of the year-end bonus, and used as an important basis for talent cultivation and support for employee development. In 2022, the Company had a total of 566 employees, and all were reviewed based on the aforementioned principles.