Corporate Governance Evaluation

Ethical corporate management at the Company and related implementation

Operation of Ethical Corporate Management in 2025:

  1. In 2015, PCSC established the Ethical Operations Case Team and report to the Board of Directors once a year. (The latest report date was on December 10, 2025)
  2. The Company’s internal website features a Policy Promotion Area about regulations governing ethical corporate behavior. And Ethical Operations Case Team promote ethical corporate behavior and prevention of insider trading to related teams and subsidiaries every year. The topics include Laws and handling principles, Fair Trade Act case handling, administrative interpretations of the Fair Trade Act, etc. And in 2024, the promotion dates were on June 18 and November 22 with the topics of implementation results, ethical management case studies, related legal compliance guidance, and 2025 plan.
  3. The Company conduct the training courses to directors, high-level managers, and all employees in terms of legal compliance, ethical corporate, and prevention of insider trading and etc. every year. The training topics in 2025 were Prevention of Unlawful Workplace Conduct and Sexual Harassment for Managers, Ethical Business Practices, Personal Data Protection, Basic Legal Knowledge, Fair Trade Act, and Occupational Safety and Health. In addition, the Company introduced new online courses and training videos, including Personal Data Management and Protection and Taiwan Intellectual Property Management System (TIPS) – Promotion of Corporate Intellectual Property Governance, to ensure alignment with evolving regulations and to further strengthen awareness and implementation.
    • Education and training on prevention of insider trading:
      • Directors, management team, insiders: We conducted a total of 13 regular promotions on regulations related to insider trading. Additionally, we provided guidance on refraining from stock trading during financial reporting blackout periods, conducting a total of 4 promotions before each quarterly and annual financial report released.
      • New employees: Mandatory basic training for new employees.
    • Legal Compliance Training for Group Management – Prevention of Unlawful Workplace Conduct and Sexual Harassment
      • PCSC: total 337 people passed the training
      • Subsidiaries: total 159 people passed the training
    • Legal and Compliance Training for All Employees and New Hires:
      Legal and compliance training programs were provided for all employees and new hires, covering topics including ethical business practices and personal data protection, basic legal knowledge, proper use of the 7-ELEVEN brand, prevention of workplace violence and sexual harassment, occupational safety and health education, and dedicated personal data protection programs. In addition, insider trading prevention education is designated as mandatory foundational training for new employees.
      A total of 12 courses were delivered, with 6,230 training participations completing the programs
    • Cybersecurity Awareness：To continuously strengthen employees’ information security knowledge and enhance cybersecurity awareness, the Company implemented comprehensive information security training programs aimed at reducing the risk of personal and corporate data breaches and enhancing overall cybersecurity resilience. The programs included training on vulnerability prevention, phishing attack prevention, and external professional cybersecurity courses. In addition, courses on personal data protection and privacy security in the application of artificial intelligence were incorporated into the regular meetings of the Personal Data Protection Task Force.
      A total of 2,044 training participations, including all employees and managers, completed the programs.
    • Risk Management Awareness Promotion：
      In 2025, to strengthen employees’ and store partners’ understanding of risk management concepts and to promote the practical application of risk management in daily operations, the Company conducted risk management awareness initiatives aimed at early risk identification and mitigation. A total of 12,997 participations completed the program.
    • PCSC has also set up the “Code of Conduct for PCSC and Subsidiary Subcontractors”, requiring all suppliers to sign “Ethical Corporate Management and Corporate Social Responsibility Agreements”, to which have been incorporated five major standards, including worker, health, environmental safety, ethics, and fairness.
    • Personal Data Protection Training Programs:
      In 2025, the Company implemented a comprehensive personal data protection training program, which included an online personal data course attended by 5,121 participants, a 1.5-hour onboarding personal data course for 19 new employees, a 1.5-hour advanced personal data course for 53 participants, an 18-hour Personal Data Protection Manager certification program (external training conducted by the Institute for Information Industry) for 3 participants, and external professional personal data training courses for 10 participants.
      A total of 5,206 participant attendances were recorded, with aggregate training hours reaching 2,809.5 hours.
Items Evaluated Status
Yes No
1. Establishment of ethical operation policies and programs
(1) Does PCSC have ethical operation policies established by the Board, and do PCSC’s Articles of Incorporation and external documents explicitly expressing its ethical policies and methods and are the Board and management dedicated to the active implementation of these commitments? V
(2) Did PCSC establish an evaluation system to evaluate risks of unethical behavior and regularly analyze and evaluate operations that have higher risk of unethical behavior and did the Company implement preventative measures for each Item under Clause 2, Article 7 of the Ethical Corporate Management Best Practice Principles for Listed Companies? V
(3) Do PCSC’s unethical conduct prevention programs clearly specify relevant procedures, conduct guidelines, as well as a discipline and appeals system for rule violations, and are they regularly reviewed and amended? V
2. Implementing ethical corporate management
(1) Does PCSC evaluate the ethical records of the businesses with which it has dealings and include clear ethical corporate behavior provisions in contracts with such counterparties? V
(2) Has PCSC established an organization under the direct jurisdiction of the Board of Directors that promotes ethical management principles and also reports to the Board regarding the implementation of these principles at least once a year? V
(3) Has PCSC formulated and implemented policies to prevent conflicts of interest and provide appropriate ways to record any potential conflicts found? V
(4) Has PCSC implemented effective accounting and internal control systems and has the audit division established relevant audit plans based on the results of the unethical risk evaluations and did the audit division ensure that the plans are being complied with or has PCSC had independent accountants periodically review them? V
(5) Does PCSC periodically hold internal and external ethical corporate behavior training? V
3. Operation of the Company’s Violation Reporting System
(1) Has PCSC established a concrete violation reporting and rewards system, set up convenient reporting channels, and appointed suitable personnel to handle these cases? V
(2) Has PCSC established an investigation an SOP for violation reporting, follow-up measures, and relevant mechanisms to ensure confidentiality? V
(3) Does PCSC have any measures in place to protect individuals from possible mistreatment arising from reporting violations? V
4.Strengthening information disclosure
Does PCSC disclose the content of its Best Practice Principles and its effectiveness on their website and the TWSE market observation post system?		 V
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