Establishment of Trade Secret Management System

The protection of the company's confidential information is a crucial aspect of corporate sustainable development and maintaining core competitiveness. WPG Holdings has demonstrated outstanding performance in intellectual property management, having not only obtained the Taiwan Intellectual Property Management System (TIPS) Grade A certification for both 2022 and 2023, but also successfully passing the TIPS inspection in 2024, highlighting its robust approach to confidential information management. To ensure the effective management of confidential information, WPG Holdings has established a comprehensive information management system. In accordance with the established confidentiality management regulations, each functional unit is required to regularly review and update the confidential information classification table, ensuring effective management of confidential information at different levels. Additionally, WPG Holdings continually optimizes existing data control processes to improve management efficiency and mitigate risks. Furthermore, WPG Holdings actively promotes employee education and training by offering courses such as "Basic Concepts of Intellectual Property & Policy Goals." Through practical case studies and regulatory explanations, these sessions help employees better understand the challenges in confidential information protection brought about by technological advancements. These measures aim to prevent potential risks in advance and ensure effective post-event evidence gathering, safeguarding the interests of the company and its stakeholders, and laying a solid foundation for sustainable development.

Intellectual Property Management Plan

In order to achieve WPG Holdings' operational objectives and ensure compliance with intellectual property-related laws and regulations,WPG Holdings has incorporated intellectual property management as a core component of its internal control system, committed to strengthening the protection and utilization of intellectual property. Based on this strategy, the “Copyright Management Guidelines” were revised in 2024, and various forms related to copyrights and trademarks were added and improved. At the same time, relevant operating processes were optimized to further enhance the intellectual property management mechanism, ensuring that the management procedures are more rigorous and efficient. Additionally, in response to WPG Holdings' new business models, Logistics as a Service (LaaS) and WMS (Warehouse Management System), the company has conducted in-depth research and analysis on the market competition dynamics, particularly evaluating the development trends of patent technologies among potential competitors. Based on these insights, WPG Holdings has developed forward-looking strategies to ensure a competitive edge in emerging markets, as well as a series of intellectual property protection measures to provide solid assurance for future operational development.

Through these initiatives, WPG Holdings has not only enhanced the management and protection of intellectual property but also laid a solid foundation for the company’s innovative development, ensuring it maintains a leading position in the rapidly changing market environment.

Management System of Personal Information Protection

Due to the global expansion of WPG Holdings' subsidiaries' operational locations, the company has formulated specific risk management strategies for the personal data risks potentially involved in global operations. The company continues to conduct internal personal data inventory operations and risk assessments annually in accordance with regulations to review the implementation status of personal data protection and ensure that WPG Holdings' personal data privacy protection system continues to comply with global trends. To promote the execution of the personal data protection policies, WPG Holdings also continues to hold regular “Legal Compliance Training Series” courses for employees. In 2024, one educational training session was held (please refer to the “Advocacy of Legal Compliance” section of the report). Through the focused advocacy on personal data protection, the company aims to enhance employees' awareness of legal compliance and implement corporate compliance management.

Furthermore, to ensure timely response to regulatory updates and adjust according to operational changes, WPG Holdings regularly tracks legal updates and reviews internal compliance status. In early 2024, in response to the establishment of WPG Electronics Co., Ltd.’s Linkou International Logistics Center at the end of 2023, WPG Holdings immediately assisted and guided the company to establish a personal data file security maintenance plan according to the " Rules of the Personal Data Protection Act " and the "Security Maintenance Management Procedures for Bonded Warehouses and Logistics Centers." The security and maintenance measures for personal data files were implemented and passed administrative inspection by the competent authorities in early August 2024, ensuring that both WPG Holdings and its subsidiaries meet their obligations for personal data security maintenance.

To respond to and communicate with stakeholders on personal data privacy protection issues in a timely manner, WPG Holdings has set up a personal data privacy protection mailbox as a contact channel. In 2024, WPG Holdings received opinions related to personal data rights and interests via the mailbox, which were immediately forwarded to the responsible unit for handling and responding to the request. WPG Holdings will continue to work toward strengthening personal data
privacy protection management, safeguarding the interests of investors, and achieving the goal of corporate sustainability.

To align with the trend of regulatory amendments, establish a risk management system, and meet supply chain management system requirements, WPG Holdings plans to evaluate the introduction of ISO 27701 for personal data privacy management systems. The company plans to start identifying current risks in 2025, reviewing privacy protection status in actual business scenarios, identifying applicable regulations, impact scope, and gaps. By 2026, WPG Holdings aims to establish a privacy protection mechanism and system at the group level. After the completion of the privacy protection mechanism and system establishment in 2027, WPG Holdings will seek certification, continuing to run the system to enhance the commercial image, increase customer trust, strengthen investor confidence, and ensure legal compliance and governance.

Enhancing Risk Prevention and Protecting Debt Solvency

Continuing to focus on improving the efficiency of customer accounts receivable collection, in order to reduce concerns about bad debts within the subsidiaries of WPG Holdings and improve the control effectiveness of accounts receivable, we have adopted the spirit and objectives of the "Action Plan for Assurance of Creditor’s Rights and Collection of Accounts Receivable" established in 2023. We further developed the "Collection Decision Points" (hereinafter referred to as these points) as a guide for the legal team and front-line business managers to execute collection operations and make decisions. These points not only highlight key benchmark cases from the collection cases of various subsidiaries, which are particularly valuable for reference, but also extract principles based on successful collection execution examples. This provides improved, reliable guidelines that alert and guide the front-end in making collection decisions. In addition to improving the efficiency of the legal team’s operations, this will help business managers quickly issue correct collection instructions, speeding up the recovery of debts.

These points not only summarize the essence and key aspects of the collection procedures but also outline the evaluation and analysis methods used by both the business department and the legal team to make collection decisions. This ensures that each subsidiary can ultimately make the most appropriate and advantageous judgment. The first version of the collection decision points was finalized in 2024, and discussions with the business and credit management units for further improvement and completion of the content will take place in 2025. Additionally, to implement the purpose of these points, internal education and training for the legal team will be conducted, followed by outreach to front-line business units to refine the collection effectiveness of the legal team and expand debt recovery across subsidiaries.

Advocacy of Legal Compliance

In order to strengthen employees' legal awareness in performing duties in each unit, implement corporate legal compliance, protect the rights and interests of investors, and achieve corporate sustainability, the Legal Affairs Service unit had conducted live broadcasts of Legal Compliance Education in 2024. There is also a special section for relevant courses to provide these live-streamed course videos and online post class quizzes, so that colleagues in all regions can watch, learn and take online tests anytime, anywhere to view their learning outcomes online. In addition to the training courses arranged in the aforementioned the "Establishing the management system of confidentiality" and the "Intellectual Property Management Plan", and "Personal Information Protection Management System", it also included the advocacy of legal compliance course on the topic of "Insider Trading" and "Dishonest Conduct" with online tests after each live streaming course to deepen the legal concept of colleagues.

•  2024 Legal Compliance Education and Training Series

Product Trade Compliance

WPG Holdings conducts internal trade compliance training courses every year, especially in face of the impact of the US-China trade war in 2020. WPG Holdings must monitor the changes in laws and regulations of various regions/countries, with timely updates for legal compliance. In addition to emphasizing the importance of export control, the training courses also cover changes in export control regulations of related countries, regions, and governments, WPG Holdings trade compliance policy, management mechanisms and systems control, and new requirements from suppliers and partners on trade compliance. WPG Holdings holds annual education and training courses in various regions, including Mainland China (including Hong Kong), Taiwan, South Asia, South Korea, India, and Japan.  

• Past Three Years of Trade Compliance Training

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