Corp.Gov. Implementation of the Director Diversification

Implementation of the director diversification policy:

Diversification of Board of Directors

In accordance with Article 19 of the Company's "Corporate Governance Best Practice Principles", the composition of the Board of Directors shall take into account diversity, except that the number of directors who are also managerial officers of the Company shall not exceed one-third of the total number of directors, and that the Company shall formulate an appropriate diversity policy with respect to its own operations, business model and development needs, which shall include but not be limited to the following two major criteria:

1. Basic conditions and values: Gender, age, nationality, culture, etc., of which the ratio of female directors should reach one third of the total directors.

2. Professional knowledge and skills: Professional background (such as, law, accounting, industry, finance, marketing, or technology), professional skills, and industrial experience.

All members of the board shall have the knowledge, skills, and experience necessary to perform their duties. To achieve the ideal objectives of corporate governance, the Board of Directors as a whole should have the following competencies:

1. Operation Judgement Ability, 2. Accounting and Financial Analysis Ability, 3. Operational and Management Ability, 4. Crisis Response Ability, 5. Knowledge of Industry, 6. Understanding of International Markets, 7. Leadership, and 8. Decision Making.

Here in the Company the incumbent Board of Directors is composed of 7 directors, including 4 directors and 3 independent directors (male in all cases). All directors in the Board possess the expertise and hands-on experiences accumulated in the financial, commercial, legal and industrial management fields. The Company, as well, stays vigilant on gender equality among the composition for all seats of the Board of Directors and will, continuously in compliance with Corporate Governance Best-Practice Principles, bring in more female directors to have female seats up to one-third of the total for thoroughly further implementing general equality.

Diversification policy and the implementation of the composition of the Board of Directors:

Core diversity aspects

Nationality

Gender

Directors

concurrentl

serving as

company

employees

Age

Term of

independent

directors

Industry

experience

Professional

capacity

Name of Directors

41 to

51 to

61 to

Under 3

years

3 to 9

years

Over 9

ears

Cooling

industry

Finance and

accounting

Law

SINOTEAM HOLDINGS INC.

Representative: HSU Wen-Faung

R.O.C.

Male

LAI, Jen-Chung

R.O.C.

Male

LUXURY SHINE INTERNATIONAL LIMITED

Representative: Chang,Yuan-Fen

R.O.C.

Female

GUAN, JYH-LIANG

R.O.C.

Male

HSIEH, Yu-Tien

R.O.C.

Male

CHEN, Tien-Szu

R.O.C.

Male

CHIU, Shih-Fang

R.O.C.

Male

Director professional background and knowledge:

Core Diversity Aspects	Gender	Operating Judgement	Accounting and Financial Analysis Ability	Operational and Management Ability	Crisis Response Ability	Knowledge of Industry	Understanding of International Markets	Leadership	Decision Making	Law
Name of Directors	Gender	Operating Judgement	Accounting and Financial Analysis Ability	Operational and Management Ability	Crisis Response Ability	Knowledge of Industry	Understanding of International Markets	Leadership	Decision Making	Law
SINOTEAM HOLDINGS INC. Representative: HSU Wen-Faung	Male	√	√	√	√	√	√	√	√
LAI, Jen-Chung	Male	√	√	√		√	√	√	√
LUXURY SHINE INTERNATIONAL LIMITED Representative: Chang,Yuan-Fen	Female	√	√	√	√	√
GUAN, JYH-LIANG	Male	√	√	√	√	√	√	√	√
HSIEH, Yu-Tien	Male		√			√	√
CHEN, Tien-Szu	Male	√	√	√	√	√	√	√	√
CHIU, Shih-Fang	Male						√	√		√

Independence of Board of Directors:

The Board is composed of a total of seven members, four of whom are regular members and three are independent directors, who possess rich experience in financial, business, law and industry management fieldsAs expressly provided for in Article 21 of the Company's Corporate Governance Best-Practice Principles and Article 79 of the Articles of Incorporation, the directors shall be elected under candidates nomination system. Accordingly, the Company shall prudentially evaluate the qualification requirements of the nominated candidates to check and make sure whether they fall situations under Article 30 of the Company Act and shall, in turn, duly elect the right ones in accordance with Article 193-1 of the Company Act. After all candidates for directors (with independent directors covered inclusively) are duly resolved by the Board of Directors, the candidates shall be submitted to the shareholders’ meeting for the election process.

Among the Company's 7 directors (including the independent directors), the relationship in relatives set forth under Paragraphs 3 and 4 of Article 26-3 of Securities and Exchange Act as a spouse and blood relatives within the second degree of kinship is nonexistent.