Communication Between Independent Directors and CPA/Internal Auditor

Since 2021, the Independent Directors have been communicating with the Internal Auditor and CPA in a separate manner.

(1) Communication with the CPA: The Independent Directors and the CPA will communicate before the issuance of the financial report on significant investments or financing matters.

Date/Nature	Item	Result
2024.11.13 Pre-Audit Meeting	Subsidiary supervision and tax management	1. Ennoconn Group continues to expand its operating scale through mergers and acquisitions or strategic alliances. It is recommended that it should continue to strengthen the management of its subsidiaries and conduct operational changes brought about by strategic alliances (including supply chain, new customer base) etc.), appropriate management operation policies and measures should be formulated as early as possible to effectively manage operational risks. 2. In response to the group's continued mergers and acquisitions, it is recommended that Ennoconn should complete and obtain the purchase price allocation (PPA) report in a timely manner to ensure that the consolidated financial report can be prepared within the deadline and the financial impact of the merger and acquisition transaction can be properly disclosed. 3. Regarding various tax changes, such as: the potential impact of Pillar 2 of the global minimum tax system, and the relevant administrative interpretations issued after the implementation of China’s controlled foreign corporation (CFC) system for profit-making enterprises, it is recommended that companies continue to pay attention and evaluate Its potential impact shall be properly expressed and disclosed in the consolidated financial report in accordance with regulations. 4. In response to the derailment of China's sustainable disclosure standards with IFRS, it is recommended that companies start to conduct a gap assessment to understand the differences between the content of current sustainability reports and future IFRS sustainable disclosure standards, and to formulate an introduction plan as early as possible. draw to ensure that the company can successfully complete the integration operation within the time schedule stipulated by the competent authority of our country.
2024.05.09 Pre-Audit Meeting	Subsidiary supervision and tax management	1. Subsidiary Kontron AG acquired the equity of KATEK SE, a German listed electronics company, through its subsidiary Kontron Acquisition GmbH in January 2024. Kontron expects to integrate Katek’s assets and liabilities after completing the integration with Katek in the second quarter of 2024. Incorporated into Kontron financial reports.CPA suggested that the company should supervise the completion of the purchase price allocation (PPA) of its subsidiary Kontron as soon as possible to ensure that the subsequent preparation of the group's consolidated financial statements can be completed as planned. 2. Considering the continuous expansion of the group's operating scale, it is recommended that the supervision of subsidiaries should be strengthened, such as the effective implementation of accounting reporting procedures, capital loans and endorsement guarantees and other related internal control system operations. 3. As of the first quarter of 2024, the company has not yet completed the disclosure of the group’s assessment of the group’s exposure to the Pillar 2 tax reform. It is recommended that the company should speed up its research and analysis of the impact of the Pillar 2 global minimum tax system on the entire group and formulate plans as soon as possible. Appropriate response plan.

(2) Individual communication with internal auditor:

Ennoconn’s Independent Directors communicate with the head of Internal Auditor in the following ways:

I. In the Audit Committee and the Board of Directors’ meeting, to discuss important audit findings and improvements.

II. Performing special audits or further analysis of previous audit as directed by the Independent Directors.

III. Communicate directly by phone or email.

The key contents of communication between independent directors and the head of internal audit aThe key of the communication between the Independent Directors and the Internal Auditors and the follow-up actions are listed below:

Date/Nature	Item	Result
1/18/2024 Pre-Audit Meeting	Report Nov 2023 auditing progress	The independent directors requested an explanation of the investment process and declaration procedures. Resolution: Executed as requested.
3/7/2024 Pre-Audit Meeting	Report Dec 2023 auditing progress	The Independent directors requested an explanation of the fund allocation process and control measures. Resolution: Executed as requested.
3/29/2024 Pre-Audit Meeting	1. Report Jan 2024 auditing progress 2. 2023 Statement of Internal Control System	1. The independent directors requested an explanation for immidiate and significant financial risks of subsidiaries that have been audited and the time of tracking. Resolution: Explanation has been provided as requested. 2. After deliberation, the report will be submitted to the board of directors for approval.
5/9/2024 Pre-Audit Meeting	Report Feb and March 2024 auditing progress	The independent directors have no objections to the audit results as reported.
8/13/2024 Pre-Audit Meeting	Audit Report Progress Report for April to June 2024	The independent directors have no objections to the audit results as reported.
11/13/2024 Pre-Audit Meeting	1.Audit Report Progress Report for Jul. to Sep. 2024 2.Discussed the 2025 annual audit plan.	Audit performance and the 2025 audit plan were discussed; independent directors had no objections.
1/13/2023 The first communication meeting with designate auditor	The first communication meeting with designate auditor	1. Communicate the suggestions and expectations for future audit work with designate auditor. 2. The company should control the subsidiaries and affilated companies requested by independent directors. Resolution: The tasks have been finished as the independent directors' request and have been arranged to audit.
3/8/2023 Pre-Audit Meeting	Audit Report Progress Report for Q4 2022	1. The closing report on prevention and improvent of cashier fraud cases. 2. The independent directors request to review the credit control and management operational procedure. Resolution: The company is now proceeding to establish the credit control and management operational procedure.
3/30/2023 Pre-Audit Meeting	Audit Report Progress Report for Jan & Feb 2023	1.The internal control has been assessed as effective for the year 2023. 2. Post-investment management should be listed as a core of internal control requested by independent directors. Resolution: Post-investment management reports have been conducted as of April 2023.
5/10/2023 Pre-Audit Meeting	Audit Report Progress Report for Feb to Apr 2023	The request from independent directors: 1. The result of tracking credit operation procedures' amendment. Resolution: The management department has held an interdepartmental meeting to discuss credit operations and proceeded to evaluate the feasibility. 2. The company are obligated to implement what investment laws require. Resolution: Reinforce the internal control of investment products.
7/6/2023 Pre-Audit Meeting	Audit Report Progress Report for May to Jun 2023	The request from independent directors: Auditors should expand audit scope and the audit report should include subsidiaries. Resolution:The audit of subsidiary companies has already been planned.
8/14/2023 Pre-Audit Meeting	Audit Report Progress Report for July 2023	The company has reviewed and revised the credit control and management operational procedure as Independent directors suggested.
11/14/2023 Pre-Audit Meeting	Audit Report Progress Report for Aug. to Oct. 2023	Independent directors requested that company should present the amendment of subsidiary's audit plan in the latest board meeting. Resolution:Improved as requested.
5/13/2022 Pre-Audit Meeting	Audit Report Progress Report for Q1 2022	1.Report on the prevention and improvement of cashier fraud cases. 2.The Company need to improve the process of preparing financial ststements suggested by Independent directors. Resolution: The Finanical Department are hiring more experienced employees and set to make improve the process of preparing financial statements
8/11/2022 Pre-Audit Meeting	Audit Report Progress Report for Q2 2022	1.Report on the prevention and improvement of cashier fraud cases. 2.The Company need to improve the subsidiary governance framework suggested by Independent directors. Resolution: All related Departments are coordinating to make improvement on subsidiary governance framework
11/9/2022 Pre-Audit Meeting	Audit Report Progress Report for Q3 2022	1.Report on the prevention and improvement of cashier fraud cases. 2.The Company need to improve the subsidiary governance framework suggested by Independent directors. Resolution:All related Departments are coordinating to make improvement on subsidiary governance framework.