The Company is committed to building a people-oriented working environment that fosters fairness, professional growth, and a healthy work-life balance. We aim to create a workplace where employees can work with peace of mind, unleash their potential, and grow together with Lungteh Shipbuilding.

Comprehensive Systems and Employee Benefits

We offer a competitive salary structure and invest in training outstanding talent to ensure a high quality of life for our employees. In addition, we allocate employee welfare funds for various benefits such as company gatherings, birthday gifts, and club activities. In compliance with regulations, we provide labor insurance and National Health Insurance. The Company also offers group insurance, partially subsidized by the Company, to further enhance employees’ overall protection.

(1) Remuneration Policy

The Company adjusts salaries based on objective factors such as employees' professional capabilities, academic background, and work experience. All starting salaries comply with the minimum wage requirements stipulated in the Labor Standards Act, ensuring that compensation is not influenced by gender, age, race, or other discriminatory factors, thereby maintaining fair treatment for all.

Bonus systems are designed based on the Company’s overall operating performance, as well as team and individual achievements. These systems aim to motivate employees to achieve business goals, maintain product quality, and enhance production efficiency. In addition, the Company conducts annual salary adjustments with reference to industry salary benchmarks and economic trends to ensure continued competitiveness.

According to the Company’s Articles of Incorporation, if the Company generates profits for the year, it shall allocate 1% to 10% of the distributable earnings as employee remuneration and no more than 5% as director remuneration. However, if there are accumulated losses, they must be covered before any distribution is made.

(2) Implementation Status

To ensure the effective execution of the remuneration policy, the Company conducts annual salary adjustments based on overall business performance. Regular performance evaluations—focusing on production efficiency and quality—serve as the basis for determining performance bonuses. Based on the operating results of 2023, the Company allocated 1.5% of the 2023 profit as employee remuneration in 2024, sharing the achievements of its operations with all employees.

Employee Retirement System and Implementation

To ensure a secure retirement for employees, the Company has established a retirement system in accordance with relevant labor laws and formed a Labor Pension Reserve Supervisory Committee. A designated amount is allocated monthly to a dedicated account with the Central Trust of China to safeguard employees’ rights and interests.

Since July 1, 2005, the Company has also adopted the government’s new pension scheme, contributing 6% of each employee’s monthly wages to their individual pension accounts. For employees who voluntarily contribute additional pension amounts, the Company withholds the specified percentage from their monthly salary and transfers it to their personal pension accounts managed by the Bureau of Labor Insurance.

The Company follows the applicable provisions of the Labor Pension Act for employee retirement as outlined below:

1.Voluntary Retirement

Employees who meet any of the following conditions may apply for voluntary retirement (for those under the Labor Pension Act, the application is processed in accordance with the Act):

a.At least 15 years of service and aged 55 or above.

b.At least 25 years of service.

c.At least 10 years of service and aged 60 or above.

2.Mandatory Retirement

The Company may not enforce retirement unless the employee meets one of the following conditions:

a.Reaches the age of 65.

b.Suffers from mental or physical disability and is no longer capable of performing job duties.

3.Retirement Pension Standards

For service years accrued before and after the implementation of the Labor Standards Act, and for employees who chose to continue applying the Act under the Labor Pension Act, pension benefits are calculated based on Articles 55 and 84-2 of the Labor Standards Act.

Employees with such qualifying service years who are mandatorily retired under Article 35, Paragraph 1, Subparagraph 2 of the Labor Standards Act due to mental or physical disability resulting from the performance of their duties shall receive an additional 20% pension, as stipulated in Article 55, Paragraph 1, Subparagraph 2 of the Act.

For employees under the Labor Pension Act scheme, the Company contributes 6% of their monthly salary to their individual pension accounts.

4.Pension Payment

The Company shall pay out the retirement pension within 30 days from the employee’s retirement date.

Employee Care

The Company is committed to supporting the physical and mental well-being of its employees. Regular health check-ups are arranged for on-the-job employees, drinking water quality is tested periodically, and on-site occupational health nurses are stationed to address employee health concerns in a timely and proactive manner.

Talent Development

Upholding the spirit of employee education and cultivation, the Company has established a comprehensive training system based on industry development trends and business strategies. Regular internal and external training programs are conducted to support employees’ career growth while enhancing overall work performance.

Human Rights Protection Policies and Specific Management Measures

We value our employees and respect human rights, striving to create a workplace that is transparent, safe, healthy, and fair for all.

Open and Diverse Communication Channels

In accordance with regulations, labor-management meetings are held quarterly. Employee representatives are elected to participate alongside company-appointed representatives to discuss labor relations and promote collaboration. In addition, internal communication groups have been established to facilitate ongoing dialogue between labor and management.