Arcadyan upholds integrity as a core corporate value and has established sound corporate governance and risk management mechanisms to ensure ethical business conduct. Through comprehensive policies, training programs, preventive measures, and reporting channels, the Company systematically implements integrity management practices to ensure compliance with applicable laws and regulations while strengthening long-term business resilience and sustainability.
Policy Formulation
In accordance with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and with the approval of the Board of Directors, Arcadyan has established and publicly disclosed the Ethical Corporate Management Principles, the Procedures for Ethical Management and Guidelines for Conduct, and the Code of Conduct for Directors and Managers. In addition, the Company has incorporated a Business Ethics Policy into its personnel management regulations to clearly demonstrate its commitment to ethical business conduct. To uphold high standards of ethical risk management, Arcadyan has established clear prohibitions against the following forms of misconduct:
In 2025, Arcadyan received no reports involving integrity violations or corruption, and internal reviews identified no material incidents of non-compliance. The Company was not subject to any regulatory penalties related to ethical business conduct or anti-corruption regulations during the year, demonstrating the effectiveness of its integrity management system and its continued commitment to sound risk management and corporate governance practices.
Training and Awareness
To further embed a culture of integrity and ethical conduct, Arcadyan established its Employee Code of Conduct in 2007 and comprehensively revised it into the Business Ethics Policy in 2021. The policy covers key topics including integrity and honesty, conflict of interest prevention, gift and hospitality guidelines, proper use of company resources, protection of intellectual property and confidential information, fair competition, and anti-money laundering. Arcadyan requires all employees to avoid conducting business with parties that have records of unethical conduct. Any suspected violations must be reported immediately and business dealings terminated to safeguard the Company’s reputation and stakeholder trust. Employees who commit serious breaches of ethical conduct are subject to disciplinary actions, including dismissal, in accordance with applicable laws and Company regulations.
The Business Ethics Policy is incorporated into new employee orientation programs, and all employees are required to participate in annual awareness training covering business ethics, ethical business conduct, risk management, insider trading prevention, and the handling of material information. These programs are designed to strengthen compliance awareness and reinforce a culture of integrity throughout the organization. In 2025, a total of 3,918 participations were recorded, with a training completion rate of 95.2%. In addition, Arcadyan provides external professional training for Board members, the corporate governance officer, internal auditors, and personnel in relevant functions to enhance their knowledge of integrity-related regulations, financial management, information security, and internal controls. Total training hours reached 60 hours in 2025.
Prevention and Control Measures
comprehensive internal control system and incorporates integrity management into its annual internal audit program. The Internal Audit Office conducts regular audits and reports the results to the Board of Directors to ensure the effective operation and transparency of related management mechanisms. Internally, the Finance and Accounting Department implements a periodic job rotation system to enhance organizational resilience and reduce the risk of fraud and collusion. For high-value transactions or key decision-making processes, Arcadyan applies the Four-eye Principle through multi-level reviews and segregation of duties to strengthen checks and balances and ensure prudent and appropriate decision-making.
To further strengthen integrity management in high-risk functions, Arcadyan conducts integrity due diligence for senior executives and personnel in sales, procurement, and finance functions. In 2025, a total of 86 employees in high-risk positions completed anti-corruption questionnaires, achieving a 100% response rate, with no identified cases involving violations of business ethics, corruption, or other unlawful conduct.
Anti-Competitive Behavior
Arcadyan is committed to conducting business with integrity and in compliance with applicable laws and regulations. Guided by its Ethical Corporate Management Principles and Business Ethics Policy, the Company adheres to competition laws and fair trade regulations in all jurisdictions where it operates, ensuring that its business practices are lawful, transparent, and aligned with ethical standards. Arcadyan strictly prohibits any form of unfair competition, including price fixing, bid rigging, output restriction, market or customer allocation, and other activities that may undermine fair market competition.
Arcadyan also strictly prohibits the improper acquisition or misuse of patents, trade secrets, and confidential information, including the theft of patented information, unauthorized use of others’ business information, or inducing current or former employees of other organizations to disclose confidential information belonging to their employers. The Company is committed to protecting the rights and dignity of all business partners and treats customers, suppliers, competitors, and employees with integrity, transparency, and fairness. Employees are prohibited from obtaining benefits for themselves or third parties through information manipulation, abuse of authority, concealment of facts, or other unlawful means.
Compliance is a core principle of Arcadyan’s operations. In line with applicable laws and international standards across all operating locations, the Company continually strengthens related policies and management systems. The governance function and Board of Directors closely monitor regulatory developments and regularly review and update internal policies on environmental protection, occupational health and safety, anti-bribery and anti-corruption, prevention of harassment and discrimination, fair competition, information security, and intellectual property protection, ensuring legal compliance and ethical business conduct.
To strengthen compliance management, Arcadyan has implemented the ISO 14001 Environmental Management System and ISO 45001 Occupational Health and Safety Management System, with mechanisms for regulatory identification, risk assessment, and compliance control. In 2025, the Company faced no litigation or regulatory penalties related to anti-competitive conduct, antitrust, monopoly, or market manipulation, and recorded no material violations involving corruption, bribery, fraud, or insider trading. There were also no significant breaches of local laws or material litigation exceeding NT$2 million or related to product transactions, underscoring the effectiveness of its integrity and compliance practices.
Supplier Integrity Due Diligence
Suppliers are key partners in Arcadyan’s commitment to ethical business conduct and the promotion of business integrity. To build a transparent and fair supply chain, Arcadyan requires all suppliers to sign the Commitment of Supplier for Corporate Social Responsibility, under which they commit to complying with principles prohibiting bribery, illegal donations, gifts, and other improper benefits. Suppliers are also required to promote anti-corruption awareness and provide relevant training to their employees and agents, encouraging the reporting of any potential corrupt conduct.
As part of supplier integrity management, Arcadyan incorporates requirements related to anti-corruption, anti-bribery, prohibition of kickbacks, improper gifts and entertainment, and conflict of interest prevention into its supplier management processes. Through supplier integrity due diligence, the Company identifies and evaluates potential ethical risks within its supply chain. In 2025, based on supplier evaluations and risk assessment results, Arcadyan’s Procurement Department conducted integrity due diligence on medium- and high-risk suppliers. A total of 35 suppliers completed the questionnaire, achieving a 100% response rate. The results indicated no violations of business ethics, kickback arrangements, acceptance of monetary benefits, or improper hospitality. Arcadyan will continue to strengthen supply chain integrity risk management through systematic due diligence and transparent supplier evaluation processes.
Whistleblowing and Reporting Mechanism
Arcadyan values a culture of integrity and transparent communication. The Company has established an independent ethics reporting mailbox (ethics@arcadyan.com), as well as dedicated Corporate Social Responsibility (csr@arcadyan.com) and stakeholder grievance (hr_hq@arcadyan.com) mailboxes, providing employees and external stakeholders with channels to report unethical or inappropriate conduct. Arcadyan encourages both internal and external parties to raise concerns proactively and provide supporting information to facilitate follow-up investigation and handling.
To ensure confidence in the reporting mechanism, Arcadyan strictly protects the confidentiality of both whistleblowers and reported information and prohibits any form of retaliation. This approach safeguards the rights of whistleblowers and maintains the integrity of the reporting process. If violations are substantiated through investigation, Arcadyan will take appropriate disciplinary actions in accordance with relevant regulations and, where necessary, report the matter to judicial or competent authorities, demonstrating a zero-tolerance approach toward corruption and unethical conduct.
In addition, Arcadyan integrates ethical business conduct principles into employee performance evaluations and human resource management practices and has established clear reward, disciplinary, and grievance mechanisms. Employees who commit serious violations of integrity requirements are subject to disciplinary measures in accordance with applicable laws and Company regulations. In 2025, Arcadyan received no reports related to integrity violations or corruption, and internal investigations identified no material incidents of misconduct. The Company was also not subject to any regulatory penalties for violations of ethical business conduct or anti-corruption laws and regulations during the year, demonstrating the effectiveness of its management mechanisms and continued commitment to sound risk management and corporate governance.
Political Contributions
Arcadyan adheres to political neutrality and does not participate in party activities, political donations, or lobbying. In 2025, the Company made no political contributions. Any contribution deemed necessary must be reviewed and approved by the President and Chairman in accordance with Article 9 of the Procedures for Ethical Management and Guidelines for Conduct, and subsequently approved by the Board of Directors. At the same time, Arcadyan respects employees’ civic rights and encourages participation in democratic processes, including voting and supporting candidates or public issues of their choice, thereby upholding both social participation and individual freedom.