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Management of Impacts, Risks and Opportunities

The Company has formulated the Comprehensive Risk Management Measures to specify the responsibilities and processes for managing risks related to technological innovation. The Company regularly conducts risk identification and assessment, using both qualitative and quantitative methods to evaluate the rankings of technological innovation and intellectual property related risks. Each year, the Company conducts a comprehensive risk assessment, using questionnaires, targeted analyses, major risk reports and other measures to assess and identify significant risks that may impact the implementation of development strategies and business objectives in the coming year. The results of the 2024 major risk assessment classified the technological innovation risk as a strategic risk with a high priority ranking.