Overview

K Laser advocates and acts upon the principles of operational transparency and respect for shareholder rights. We believe that an sound and effective Board of Directors is critical for successful corporate governance. In line with this principle, the Board delegates various responsibilities and authority to two Board Committees: the Audit Committee and Compensation Committee. Each Committee has a written charter approved by the Board and the Committee's chairperson regularly reports to the Board on the activities of the relevant committee. The Audit Committee and Compensation Committee consist solely of independent directors.

Board of Directors

K Laser’s Board of Directors consists of seven members. Their careers span a wide breadth of technology, businesses and management experience. Three of the seven members are independent directors: Ms. Jessen Chang and Ms. Bi Xin Huang and Mr. Ren Liu. The Board’s primary duty is to oversee the overall business and corporate affairs of K Laser. Day-to-day operations, preparation of financial statements, fundraising, and investments remain the legal responsibility of the Company’s management. In conjunction with Company’s management, the Board also monitors regulatory activities, such as amendments to Taiwan’s laws, amendments to SEC rules and changes to Taiwan Stock Exchange listing requirements.

Directors

Chairman of the Board of Directors, Alex Kuo

Ph.D. in EE , State University of New York at Stony Brook

CEO, K Laser Group

Chairman and GM, K Laser Technology Inc.

Director, Daniel Kuo

MS in Civil Engineering, NJIT, NJ.

Chairman, OTI.

Director, Lisa Hsu

Computer Science, BS , New York Institute of Technology.

Economics, MS, State University of New York，SUNY

Director, Ching Lung Kuo

Department of industrial engineering and Management Bachelor degree ,National Taipei University of Technology

CEO, K Laser China Group

GM, Dong Guan K Laser

GM, WUXI K Laser

Independent Director, Cheng- Sang Huang

MBA, Irvine University , California

Independent director, China Airlines Ltd.

Professor, Hwa Hsia University of Technology

CPA, American International Accounting Firm

Chief Financial Officer, K Laser Technology (USA)

CPA, Xin'an Accounting firm

Independent Director, Bi Xin Huang

MBA, National Chiao Tung University

Supervisor, Chin-Shi Electronic Materials Ltd.

Administrative finance Director, Hanergy Technologies, Inc.

Investor Relations Corporate Finance Manager, Avid Electronics Corp.

Accountant Supervisor, Taiwan Semiconductor Manufacturing Co., Ltd.

Accountant Manager, AST Research, Inc.

Independent Director, Ren Liu

BS in Electrophysics, National Chiao Tung University

Researcher, National Sun Yat-Sen University Degree of Engineer, Electrical Engineering,Stanford University

MS in Electrical Engineering, Stanford University

Team Leader/Senior Researcher/ Senior Consultant, Director General’s Office of National Space Organization

Team Leader, Flight Control Division of National Space Organization

Senior Researcher/System Engineering Division of National Space Organization

Researcher of Aerospace Department/ Technical Manager/ Project Host, R & D Center of Honeywell

Election of Directors

According to 14-2 of Securities and Exchange Act and The Articles of Association of K Laser, we set up the independent directors, and at least two independent directors, all directors shall be elected pursuant to the candidate's nomination system as specified in Article 192-1 of the R.O.C. "Company Law".

According to the Article 192-1 of the R.O.C. "Company Law", K Laser announced on March 10, 2020, the period for accepting nominations for director candidates, the number of directors to be elected, the place designated for accepting the roster of director nominees, and other necessary matters. Any shareholder holding 1% or more of the outstanding shares of the Company may nominate candidate(s) for directors in writing, provided that the total number of director nominees shall not exceed the number of the directors to be elected. Any shareholder qualified to nominate may submit the name(s) of the director nominee(s) and shall send, during the nomination time period from March 17 to March 27, 2020, the name, education background and work experience of the nominee(s), a letter signed by each nominee consenting to act as director if elected, a written statement issued by each nominee assuring that he/she is not prohibited from so acting under any of the circumstances set forth in Article 30 of the R.O.C. "Company Law", and other relevant documents signed and provided by each nominee to K Laser via registered post to the following address: No. 1, Li-Hsin Road 6, Hsin-Chu Science Park, Hsin-Chu, Taiwan, R.O.C.

During the above-mentioned nomination period, the Company only received the list of director nominee sent from the Board of Directors. No nomination requests were received from any qualified shareholders. Therefore, Mr. Alex Kuo, Mr. Daniel Kuo, Ms. Lisa Hsu, Mr. Ching Lung Kuo, Ms. Jensen Chang, Ms. Bi Xin Huang and Mr. Ren Liu were elected independent directors at K Laser's Annual Shareholders' Meeting on May 28, 2020.

Functional Committees

Compensation Committee

The Compensation Committee assists the Board in discharging its responsibilities related to K Laser's compensation and benefits policies, plans and programs, and in the evaluation and compensation of K Laser's directors of the Board and executives.

The members of the Compensation Committee are appointed by the Board as required by R.O.C. law. According to K Laser's Compensation Committee Charter, the Committee shall consist of three members. The Compensation Committee is comprised of all three independent directors.

K Laser's Compensation Committee is authorized by its Charter to retain an independent consultant to assist in the evaluation of executive officer compensation.

The Committee meets at least Twice every year. Please consult K Laser's Taiwan Annual Report for the relevant year for the number of meetings convened and each member's attendance rate.

Audit Committee

The Audit Committee assists the Board in fulfilling its oversight of the quality and integrity of the accounting, auditing, reporting, and financial control practices of the Company.

The Audit Committee is responsible to review the following major matters: internal control systems including related policies and procedures; auditing and accounting policies and procedures; material asset or derivatives transactions; material lending funds, endorsements or guarantees; offering or issuance of any equity-type securities; derivatives and cash investments; Legal compliance; related-party transactions and potential conflicts of interests involving executive officers and directors; hiring or dismissal of an attesting CPA, or the compensation given thereto; appointment or discharge of financial, accounting, or internal auditing officers; financial reports; and others Under R.O.C. law, the membership of Audit Committee shall consist of all independent Directors. K Laser's Audit Committee satisfies this statutory requirement.

Under R.O.C. law, the membership of the Audit Committee shall consist of all independent Directors.

K Laser's Audit Committee satisfies this statutory requirement.

K Laser's Audit Committee is empowered by its Charter to conduct any study or investigation it deems appropriate to fulfill its responsibilities. It has direct access to K Laser's internal auditors, the Company's independent auditors, and all employees of the Company. The Committee is authorized to retain and oversee special legal, accounting, or other consultants as it deems appropriate to fulfill its mandate.

The Committee meets at least once every quarter. Please consult K Laser's Annual Report for the number of meetings convened and each member's attendance rate.

Committees

Internal Audit

There are two full time employees dedicated to Internal Audit, including one Audit Supervisor and one staff member.

K Laser’s Internal Audit is an independent department that reports directly to the Board of Directors. Besides informing the Board during its ordinary meetings, the department briefs the Chairman, the Audit Committee on a needed basis.

The charter of Internal Audit is to review the internal controls in the company's processes and to report on those controls with respect to the adequacy, effectiveness, and efficiency of their design as well as their actual functioning on a day-to-day basis. All parts of the company and its subsidiaries are open for review by Internal Audit.

The majority of the audit work is executed according to an annual plan, which needs to be approved by the Board of Directors. Such plan will take into account risks that have been identified. Special audits or reviews are conducted as needed. The combination of the regular audits and the special projects provide management with objective assurance and insight on the functioning of the internal control system; it gives management an additional channel to learn about existing or possible future weaknesses in the system, which allows management to address them in a timely manner.

The company supplements the review activities by Internal Audit with documented self-assessments by the divisions and all subsidiaries. Internal Audit sees to it that these activities do take place, and reviews the submissions to ensure the quality of the process; it consolidates the results of the self-assessments for the GM, Chairman and the Board of Directors.

Dividends

Dividend Policy

K Laser intends to maintain a stable dividend policy and cash dividend to shareholders every year by distributing quarterly . As the Company's operation continues to generates free cash flow, K Laser expects to maintain a sustainable cash dividend on both an annual and quarterly basis.

Latest Dividend

Stock Transfer Agent

Grand Fortune Securities Co., Ltd

Add.: 6F, No.6, Sec. 1, Zhongxiao W. Rd., Zhongzheng Dist., Taipei, Taiwan, R.O.C.

Tel: 886-2-2371-1658

Website: www.gfortune.com.tw

Spokesman & Acting Spokesman

Spokesman：Teresa Huang CFO

TEL: 03-5770316

E-mail ：IR-KLTW@klasergroup.com

Acting Spokesman：Yumei Tsai Chief Internal Auditor

TEL: 03-5770316

E-mail ：IR-KLTW@klasergroup.com

Suppliers

In order to improve the future generations through the promotion of sustainable development. We, K Laser, need to establish partnerships with our supply chain. Most of all, suppliers and us should be in strict accordance with the social responsibility, including environmental protection, labor rights, health and safety, risk management and ethics regulation, and also disable the use of conflict metals.

Topics Concerned

Supplier Management

Information Security

Sustainable Development Strategy

Corporate Image

Information Transparency

Communication Channels

Purchase Contract

New Supplier Qualification Assessment

Annual Supplier Assessment

Operation Mechanism

Completed a supplier assessment in 2022 (11 key suppliers were assessed)

Contact Window:

Joseph Chang

E-mail: josephchang@klasergroup.com

Customers

K Laser technology Inc. was established on Apr. 29, 1988, set up the Headquarter in Hsinchu Science Park, as the world’s largest publicly supplier of holographic film, foils, papers, glitters and yarns which are widely used in security, packaging, printing and decoration. We have 10 sales offices & distributers globally (including Asia, Europe, America), develop the fully integrated marketing channel to provide the local service with high quality & efficiency.

Topics Concerned

Information Security

Customer Protection and Communication

Information Transparency

Service Quality

Corporate Governance

Customer Relationship Management

Supply Chain Management

Communication Channels

Customer satisfaction questionnaire

Weekly sales meeting

Multiple communication channels for customers: including service line, customer complaint line, website visitor message board Each subsidiary has formulated the "Customer Complaint and Dispute Handling Standards" and has a complaint e-mail address to handle related complaints or disputes to protect the rights and interests of customers.

Operation Mechanism

Completed annual customer satisfaction survey questionnaire, the product satisfaction was 4.02 and the satisfaction with the service quality of business personnel was 4.31 points

40 Sales meetings have been held in 2022

Video conference meeting with subsidiaries for customer needs per month

In 2022, we exhibited in the United States and France

Contact Window:

If you have any inquiries for related business, please feel free to contact us as per following:

Headquarters Sales Department Contact Window: Jacky Chen

E-mail: jackychen@klasergroup.com

Employees

K Laser technology Inc. gathers employee feedback through various channels, which allow employees to express their opinions adequately and freely without any duress. The organization works hard to maintain a strong and healthy employee-employer relationship. If employees have concern over employee-employer relationship, benefits, job related, working environment, personal health issues, etc., he/she can provide feedback through the channels below, and a designated associate will be assigned accordingly.

Topics Concerned

Employee Benefits

Employee Performance Appraisal

Operational Performance

Labor Relations

Corporate Image

Communication Channels

Employee Meeting

Employee Performance Appraisal Interview

Internal Information Announcement

Employee Training

Employee Symposium

Labor Conference

Operation Mechanism

8 Employee Meeting have been held in 2022

Complete employee performance appraisal interview

3 labor conference have been held in 2022

113 Internal Information Announcements

51 Employee Training have been held in 2022

Implement the "Employee Care and Health Care Plan", invite registered professional nurse to the company for employee consultation

Contact Window:

Sunny Huang

E-mail: sunnyhuang@klasergroup.com

Investors

K Laser hosts investor conferences on a nonscheduled basis and uploads the relevant presentation materials on both K Laser and the Taiwan Stock Exchange’s websites, to enable investors to make informed investment decisions.

Topics Concerned

Operational Performance

Corporate Governance

Sustainable Development Strategy

Risk Management

Shareholder Engagement

Communication Channels

Annual Meeting

Shareholders' Meeting

Investor Conference

Important Information Announcement on TWSE

Investors on K Laser’s website

Stock Affairs and Investor Relations Contact Window

Domestic and foreign corporation’s visit

Operation Mechanism

Annual Report

38 Chinese/English Material Information announced on TWSE

Monthly announcement of company operation information on TWSE

Annual shareholders meeting to announce operational performance to investors

Complete an investor conference in 2022

9 domestic and foreign corporations visited K laser in 2022

Contact Window:

Teresa Huang

E-mail: IR-KLTW@klasergroup.com

Exercising Corporate Governance

・Based on company operating ideal and prospect, to fulfill our social duty, the Board has approved the new by-law, Corporate Social Responsibility Policy. All of business operations follow up the by-laws and aggressively fulfill environment protection and energy saving.

・The Company holds training for employees and introduces our corporate social responsibility philosophy.

・The Company’s Finance and Administration Division of the Company promotes the activities of Corporate Social Responsibility. The Company also establishes the by-laws about corporate governance, takes part in social welfare activities, and sets up the guidelines about environment protection and energy saving. Besides, it fulfills the relevant energy saving programs set by the authorities.

・The Company establishes the rules and policy for employees’ salary and compensation by consideration of industrial level and the performance of the employee. Through the training, company website, the Company make the announcement to the employees regarding the Company’s business code and encourage the employees to take part in those activities about social welfare and energy saving and also set up the employee’s appraisal rules based on employee’s performance and ethic.

Developing a Sustainable Environment

・The Company establishes the relevant management process to improve the efficiency of resource utilization. In order for improving the utilization of water, the Company purchases the equipment and well maintained periodically, such as water chiller, and cooling towers, to enhance the recycle of water to reduce the consumption of carbon.

・The Company has established the environment management system. The Company’s manufacturing process does not cause the air pollution, the Company has been qualified and certified for water pollution control measure plans and have invested in equipment to handle the waste water in manufacturing.

・The Company conducts several projects to reduce the impact on the environment within the daily operation, such as installation of LED light bulb, and paperless operation system.

Protecting Public Interest

・ Pursue to the Labor Standards Law, the Labor Health Insurance Act, the Employees’ Welfare Funds Act, and the relevant laws, the Company regulates the by-laws about human resources and fulfills them.

・ The procedures for employee appealing are included in the Company’s Working Rule and the employee’s appeals are well handled.

・We have periodically conducted the fire safety inspection and maintained the equipment such as drinking fountains for employee’s health. Employee must take part in labor insurance and health insurance and pay the insurance premium according to the relevant regulations. Employees have the benefits such as regular health inspection and on-job training, which are compensated by the Company. The Company provides the safe and healthy working environment to keep the employees concentrated on job.

・In order to improve the labor relation and working efficiency, there are regular meetings for employee and employer as a way of communication.

・Since employee is the most valuable assets to the Company, the Company has established the effective career development plan for employee.

・Regarding the protection of Customer’s right, the Company has established relevant policy and creates the channel for customers to handle the customer’s complaint on a timely basis.

・ The Company has complied with regulations and international norms on marketing and marking for its products and services.

・The Company has reviewed and assessed records in regards to whether its suppliers had negatively impacted the environment and society in the past before interacting with them.

・The contract between the Company and its major suppliers included clauses of termination and removal of the contract should the suppliers be involved in violation of its CSR policies that cause a major impact to the environment and society.