Audit Committee

The Audit Committee's primary purpose is to oversee the following matters:

1. Appropriate presentation of Edison Opto's financial statements.
2. The selection and dismissal of the certifying accountant, as well as their independence and performance.
3. Effective implementation of Edison Opto's internal controls.
4. Edison Opto's compliance with relevant laws and regulations.
5. Control of Edison Opto's existing and potential risks.

Operation of the Audit Committee

According to Edison Opto's Audit Committee Organizational Charter, this committee is composed of all independent directors, with no fewer than three members. Meetings are held at least quarterly and may be convened at any time as necessary. Currently, the Company's Audit Committee is composed of all four independent directors (one seat was added to the existing three independent directors at the June 2012 shareholders' meeting, bringing the total to four). Six Audit Committee meetings were held in fiscal ""&""year 2014, with the main focus of their deliberations being as follows:

1. Establishing or revising internal control systems in accordance with Article 14-1 of the Securities and Exchange Act.
2. Assessing the effectiveness of internal control systems.
3. Establishing or revising procedures for handling significant financial transactions such as acquisitions or disposals of assets, derivatives transactions, loans to others, endorsements, or guarantees to others in accordance with Article 36-1 of the Securities and Exchange Act.
4. Matters involving personal interests of directors.
5. Significant asset or derivatives transactions.
6. Significant loans, endorsements, or guarantees.
7. Offering, issuance, or private placement of equity securities. 
8.Appointment, dismissal, and remuneration of certified public accountants.
9. Appointment and dismissal of the chief financial officer, accounting officer, or internal audit officer.
10. Annual financial reports signed or stamped by the chairman, management, and accounting officer, and second-quarter financial reports requiring certification by certified public accountants.
11. Other important matters as specified by the company or competent authorities.

Review of financial statements

The Board of Directors has prepared Edison Opto's 2013 annual operating report, financial statements, and profit distribution proposal. The financial statements have been audited by the KPMG Joint Accounting Firm, which has issued an audit report. The Audit Committee has reviewed these operating reports, financial statements, and profit distribution proposal and found them to be consistent with the Company's requirements.

Evaluate the effectiveness of internal control systems

The Audit Committee evaluated the effectiveness of Edison Opto's internal control system policies and procedures (including financial, operational, risk management, information security, outsourcing, and regulatory compliance controls) and reviewed the Company's audit department and certified public accountants, as well as management's regular reports, including on risk management and regulatory compliance. The Audit Committee believes that the Company's risk management and internal control systems are effective and that the Company has implemented necessary control mechanisms to monitor and correct violations.

Auditor Committee Introduction

2024 Annual Audit Committee – Attendance of Independent Directors

Dates, sessions, agenda items, resolutions, and the Company’s handling of the Audit Committee’s opinions for the most recent year:

Communication Between Independent Directors and CPA/Internal Audit Supervisor

1. Communication Policy Between Independent Directors and CPAs

1. The Company holds at least one communication meeting annually between independent directors and the signing CPAs. The CPAs communicate the audit/review results of the Company’s quarterly (including consolidated) financial statements and other required matters. Communication between independent directors and CPAs is satisfactory.

2. Summary of 2024 communication between independent directors and CPAs

2. Communication Between Independent Directors and Internal Audit Supervisor

1. Communication Policy
(1) The internal audit supervisor reports to independent directors quarterly on audit plans, audit results, and follow-up reports. These communications are documented and reported to the Board.
(2) The internal audit supervisor attends Audit Committee meetings to report.
(3) At least one annual communication meeting is held between the internal audit supervisor and independent directors to discuss internal control, audit matters, corporate governance, and risk management.

2. Summary of 2024 communication
(1) Internal Audit Supervisor-only Meeting With Independent Directors

(2) Summary of Communication During Audit Committee Meetings

(3) Based on the above communications regarding internal control, internal audit, corporate governance, and sustainability, communication between independent directors and the internal audit supervisor is satisfactory.