To ensure the integrity of the risk management system, the Company has established a sound risk management structure and Risk Management Policy in accordance with the Three Lines of Defense principle under the internal control system, thereby implementing checks and balances and enhancing operational efficiency through clear functional division. Effective risk management systems have been established in accordance with the type of risks faced by the businesses of the company. Management methods and risk measurement indicators are clearly set up to ensure the proper implementation of the annual business targets. The Risk Management Office performs daily operational monitoring, prepares the risk control reports regularly, submits the report to the Risk Management Committee and the board of directors every two months.

The Code of Conduct for Board of Directors of Chunghwa Post Co., Ltd. has been established to guide directors’ conduct in alignment with ethical standards, covering obligations such as confidentiality, fair transaction, avoiding conflict of interest, avoiding the appropriation of corporate opportunities for personal gain, safeguarding and properly using company assets, and encouraging the reporting of any unlawful or unethical conduct to prevent material harm. According to Chunghwa Post’s Regulations Governing Procedure for Board of Directors Meetings, directors shall recuse themselves from discussions and voting on matters in which they have a conflict of interest. In accordance with the Company’s Regulations Governing Procedure for Board of Directors Meetings, when any director is an interested party with respect to any agenda item, the director shall enter recusal. In 2025, no director recusal due to conflicts of interest occurred. In addition, Chunghwa Post has also established operational regulations governing transactions with related parties. At the beginning of each term, directors and supervisors are required to submit disclosures of their related party information and concurrent positions. These disclosures are overseen by relevant departments and all related transactions are handled in accordance with the established rules.

The Audit Office has appointed qualified and appropriate number of dedicated internal auditors based on business needs in accordance with relevant laws and regulations, and the Company has set up an auditor general that is appointed by the board of directors to be in charge of supervising the Audit Office and making regular reports to the board of directors and supervisors. The Audit Office reports to the board of directors, and an auditor general are appointed to assist the board of directors and managers to inspect and evaluate whether the internal control system is effectively working from detached, independent, objective and impartial perspectives. Suggestions are given when appropriate for improvement. The inspection feedback listed by external inspecting units such as the Financial Supervisory Commission, Central Bank and CPAs were reported to the board of directors as required and tracking will continue until improvement is completely made.In 2024, in accordance with the Regulations Governing Establishment of Internal Control Systems by Public Companies promulgated by the Financial Supervisory Commission, the Company added "Sustainable Information Management" related operating procedures to its internal control system and included them in the audit plans for 2025 and 2026.

The Company’s Department of Civil Service Ethics conducts the integrity agency risk assessment of the organization, business characteristics, and personnel on a yearly basis in accordance with the "Anti-Corruption Work Handbook" compiled by the Agency Against Corruption of the Ministry of Justice. In 2025, 100% of all operating locations have completed the integrity risk assessments, and no significant corruption risks were identified.In addition, to implement the self-discipline norms of the personnel using funds of the Company and fulfill the obligation to avoid conflicts of interests, dedicated personnel are assigned to audit the personal transactions of the personnel. In 2025, the audit was carried out 12 times, and a total of 72 people were audited to ensure safety operation of funds, avoid improper trading behavior, and maintain the reputation of the Company. For those managing monetary payment, the procurement personnel and postal staff, the supervisors of the units carry out audits every six months. In 2025 H1, the total number of people being audited was 22,823, and in 2025 H2, the number was 23,078.

The assessment results showed that there was no significant corruption risk. No employees were involved in any cases of corruption in 2025, but there were 7 suspected general illegal cases that were sent to the judicial authorities for investigation, and the relevant employees were held accountable for their administrative liability. In 2025, there was 1 employee whose contracts were terminated due to general illegal behavior during the reporting period.

Chunghwa Post carries out bidder qualification reviews in accordance with the Government Procurement Act, checking whether bidders are rejected by the Public Construction Commission’s Government e-Procurement System. Relevant review and control measures have been integrated into the existing procurement procedures. If during contract execution, it is found that the awarded vendor was previously ineligible or blacklisted, the award of the contract shall be revoked and the contract terminated in accordance with the Article 50, Paragraph 2 of the Government Procurement Act, and relevant losses shall be recovered in accordance with applicable laws and regulations.
In 2025, the number of suppliers totaled 364, an increase from the previous year mainly because of the upcoming completion and operation of the Post Logistics Park, which will lead to an increase in the number of related procurement cases and the ratio of domestic procurement was about 91.93%. All green procurement operations were carried out in accordance with the scoring methods set forth in the annual performance evaluation guidelines for green procurement by government agencies, with the achievement rate for designated green procurement items reaching 99.98%.

To strengthen supplier management, Chunghwa Post introduced the Supplier Self-Assessment Questionnaire on ESG whose content covers 5 major aspects, including environmental protection, labor practices, labor rights, business ethics, and product responsibility. A total of 38 copies of questionnaire were retrieved in 2025. Among them, 28 suppliers were rated excellent, yet the scores in the environmental protection aspect were relatively lower, leaving room for improvement.

In addition to abiding by the Four Postal Acts and their Sub-laws, Chunghwa Post has also established an integrity system for the directors and employees to improve the management of the Company. Chunghwa Post also fully implements the Legal Compliance system, with one Chief Compliance Officer (CCO) in charge of comprehensive regulatory compliance and legal affairs The proposed enhancements and improvement plan for the 2025 legal compliance system were submitted on December 3, 2025, and approved by the Chief Compliance Officer.

In accordance with the Regulations Governing the Internal Controls and Audit System for Postal Remittances and Savings and the Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises, and by referring to the practices of the same trade, Chunghwa Post has defined “major violation of laws and regulations” as the situation of being punished (or corrected or fined) by the Financial Supervisory Commission. If there is major violation of laws and regulations, it should be immediately reported to the directors and supervisors. Causes of major violations or deficiencies in terms of regulatory compliance are analyzed, and the possible impact and suggestions for improvement are presented, which after being signed by the president, the content is reported to the board of directors.

To encourage reporting illegal activities for the improvement of the management of the company, Key Points for the Implementation of the Whistleblower System of Chunghwa Post Co., Ltd. (including the whistleblower protection policy) was established in 2021 to provide complete reporting channels internally and externally. The announcement is made on the Whistleblower’s Zone on Chunghwa Post’s official website. Provisions on integrity and reporting channels are also stipulated in the procurement contract and bidding instruction for procurement projects.
Channels for whistleblowing include the followings:

Mailbox: P.O. Box 610, Taipei Beimen Taipei City, 10099 Taiwan; Reporting
line: 02-23969104;
Reporting email: whistleblower@mail.post.gov.tw.

In 2025, there were no major violations of laws and regulations, information and labels of products and services, and marketing and communication-related regulations. However, the Financial Supervisory Commission has issued a corrective order, and there were still deficiencies in occupational safety and health. For details concerning the penalties imposed in the previous year, please refer to the relevant sections in the 2024 ESG Report.