Talent Development and Training Policy

 Human resource development and cultivation form the cornerstone of Nan Pao’ssustainable operations and continuous improvement. Our training policy aims to align organizational capabilities with the company’s vision and strategies, embedding corporate culture and values into employees’ work behaviors. This ensures the enhancement of core competencies, the development of distinctive competitive advantages, and the cultivation of international managerial talent. In recent years, we have actively promoted digital learning through platforms such as the Nan Pao e-Academy and online English learning systems, creating an innovative and diverse learning environment. This enables employees to learn without restrictions of time and place, while applying their learning outcomes to improve workplace efficiency.

 

 

Performance Evaluation Framework 

Category	Evaluation System	Applicable Targets	Frequency	Implementation Method
Goal-Oriented Management	(Monthly) Performance Evaluation(Annual) Performance Evaluation	Direct staffAll employees	MonthlySemi-annual / Annual	(Monthly) Performance EvaluationSince the performance of direct staff is highly related to company productivity, monthly evaluations cover productivity contribution, work quality, and collaboration, linking results to performance bonuses.(Annual) Performance EvaluationAt the beginning of the year, managers and employees jointly set performance indicators (KPIs) derived from organizational and individual objectives. Progress is reviewed mid-year and adjusted if necessary. At year-end, employees conduct self-evaluations followed by supervisor assessments and feedback.
Multi-Dimensional	(Annual/Semi-annual) Performance EvaluationPromotion Assessment	All employees	Semi-annual / Annual	(Annual/Semi-annual Performance Evaluation)Supervisors conduct evaluations every six months, incorporating 360-degree feedback from peers, subordinates, and managers, to ensure consistency in assessments.Promotion Assessment(1) Promotion is based on job grade competency standards and managerial ability requirements.(2) Occupational aptitude assessments are used to evaluate not only employees’ knowledge and experience but also personality-job fit, enhancing potential development.(3) A Personnel Review Committee, composed of company managers, reviews and determines promotion outcomes from a multi-dimensional perspective.
Team-Based	(Annual) Performance EvaluationR&D Competitions, CIT Projects	All employees	Annual	(Annual Performance Evaluation)(1) Departmental and individual KPIs incorporate team values and objectives, with R&D competition and CIT project outcomes considered in evaluations.(2) Departmental goals such as yield improvement or cost reduction are consolidated by supervisors into annual KPIs to motivate collective success.Team Value Promotion(1) To stimulate innovation, the company holds annual R&D competitions, journal clubs, and seminars, encouraging employees to apply creative ideas in daily work.(2) Through Continuous Improvement (CIT) activities, workplace problems are systematically addressed within the PDCA framework. Employees present outcomes twice a year, sharing problem-solving experiences and applying systemic solutions in operations.
Agile Dialogue	Ongoing communication supported by weekly, bi-weekly, or monthly meetings	All employees	Continuous, with regular communication mechanisms (weekly, monthly, or as needed)	Supervisors use daily coaching to communicate with employees, understand workplace conditions and challenges, and provide timely guidance and support to enhance performance. Regular meetings with supervisors and employees review and confirm annual objectives, monitor progress, and ensure alignment of departmental and individual performance.

 

Employee Development Program

• From the start of employment, the Company provides a New Employee Training Program to introduce new hires to the Company’s corporate policies, including its Corporate Social Responsibility (CSR) philosophy and related policies. Nan Pao e-Learning (NANPAO e-Learning) serves as the core learning platform, enabling all employees to participate in a variety of training courses and programs. The Company also implements a comprehensive talent development plan tailored to each professional area.
• The Company’s training system is organized into five categories based on competencies:

ü New Employee Training

ü Individual Competency Development

ü Professional Knowledge Enhancement

ü External Training Programs

ü Managerial Training

This classification ensures a systematic approach to developing the professional expertise required for each role and job level. In addition, training and development opportunities are tailored to individual work requirements and performance evaluation results, supporting career growth. Learning channels and resources include on-the-job training, classroom training, job coaching, mentoring programs, and job rotation, providing diverse avenues for employee development.

A. New Employee Training，This training is conducted in two stages:Stage One: Covers mandatory environmental, health, and safety courses, as well as the Company’s development direction, management policies, and related regulations. It also includes introductions to personnel across different departments, helping new employees quickly integrate into the organizational culture and become familiar with workflows.Stage Two: Focuses on job-specific professional skills and knowledge required for different roles, ensuring employees are equipped to perform their duties effectively.                                    

New Employee Training

nObjective: Help new employees quickly integrate into the company and its culture, build a sense of belonging and identification, and understand occupational safety, health, and chemical-related regulations. nTarget Audience: New employees n2025 Training Data: 70 hours of courses; 70 participants nTraining Focus: Introduction to corporate culture, practical exercises, and interactive learning to enhance awareness of safety, health, and chemical regulations.

 B.  Individual Competency Development：Based on shared competencies among employees, this program primarily uses in-person training supplemented by online learning. It provides knowledge and skills related to work management, such as cross-department communication, project management, business skills, and risk management. Additionally, advanced elective courses are offered depending on employees’ years of experience.

C. Professional Knowledge Enhancement：Aligned with the Company’s strategic layout, employees are sent annually to domestic and international industry and management seminars or forums. Combined with technical guidance from consultants and vendors, this program aims to enhance technical expertise, develop new products, introduce innovative concepts, and improve managerial capabilities.

D. External Training Programs：To meet job requirements or professional development needs, the Company provides information on external training programs for employees to apply. These programs help employees strengthen role-specific skills, enhance organizational competitiveness, and achieve the objectives assigned by the organization.

E. Management Training：For employees at the managerial level, the Company designs a series of management training programs based on required management competencies. These programs aim to develop high-quality managers, strengthen leadership capabilities, and enhance overall organizational management effectiveness.

Leadership Excellence Training

nObjective：To cultivate managers with a forward-looking perspective and high-impact leadership capabilities by strengthening strategic thinking, decision-making, cross-functional communication, and talent development, thereby enhancing overall team performance. nTarget Participants：Middle and senior managers as well as first-line supervisors. n2025 Training Scale：Total training hours of 982 hours, with 110 participants. nDevelopment Focus：Through leadership courses, participants enhance decision-making and judgment capabilities; case-based simulations are used to strengthen problem-solving skills; scenario-based role-playing develops core competencies in communication, coordination, and team motivation. In addition, the program integrates individual career planning and reflective feedback mechanisms to support continuous managerial growth and enable leaders to guide their teams toward excellence.

• Since 2022, the Company has incorporated Continuous Improvement as a core competency within its training programs and integrated corporate core values and strategic objectives—coordinated by management—into employees’ annual performance targets (KPIs). Through continuous improvement initiatives, workplace issues are addressed using a systematic approach based on the PDCA (Plan–Do–Check–Act) framework. Two achievement-sharing sessions are held annually to encourage employees to present their problem-solving processes and apply these systematic solutions to daily operations.
• The Company emphasizes cross-functional collaboration to define key initiatives and short-, mid-, and long-term goals, supported by corresponding training programs to enhance professional capabilities. In addition, a case management and experience-sharing mechanism has been established to facilitate knowledge transfer. To stimulate innovation, the Company actively organizes annual R&D competitions, reading and discussion groups, and seminars, fostering an innovative culture and encouraging employees to integrate new ideas into their daily work.
• To help both the organization and employees rapidly adapt to a fast-changing environment, the Company has actively promoted digital learning in recent years. Through online learning platforms such as NANPAO e-Learning and an online English learning system, the Company creates an innovative and diverse learning environment that removes time and location constraints, enabling employees to apply learning outcomes directly to the workplace and continuously improve work effectiveness.
• In 2024, a total of 21,822 participations were recorded across courses on the Company’s learning platform, with an average of 6.55 training sessions per employee per year, totaling 24,089 training hours.

  

Succession Planning for the Board of Directors and Key Management

To ensure the Company’s sustainable development and stable succession of its management team, the Company has established succession plans for the Chairman and key management personnel. Through a systematic talent development framework and management development programs, the Company continuously cultivates senior management talents with strong managerial capabilities and alignment with the Company’s core values, thereby ensuring the continuity of business strategies and governance mechanisms.

The Board of Directors regularly reviews the succession planning and development status of key management personnel. Through performance evaluations and talent development systems, the Board continuously monitors the progress of succession planning to ensure a smooth leadership transition and maintain sound corporate governance.

 

Succession Planning and Implementation for the Board of Directors (Including the Chairman)

The Company elects its directors in accordance with the Articles of Incorporation and the Corporate Governance Best Practice Principles and adopts a candidate nomination system. In forming the Board, consideration is given not only to the Company’s operational needs but also to diversity in professional backgrounds, including industry experience, finance and accounting, business management, and strategic planning, to ensure a diversified and professional Board composition.

Succession planning for the Board is carried out by continuously developing senior executives with strong managerial capabilities. These individuals are familiarized with the Company’s overall operations and industry development and gradually accumulate governance experience by participating in Board-related meetings, group strategic projects, and key business decisions, thereby serving as a talent pool for future Board members.

The Chairman is elected by and from among the directors in accordance with the Company’s Articles of Incorporation and Board governance mechanisms. Upon the expiration of the current Board’s term in 2026 and the subsequent re-election, the Board will, in accordance with corporate governance practices and overall Board structure requirements, elect a suitable candidate with industry experience, managerial competence, and leadership capabilities to serve as Chairman.

 

Succession Planning and Implementation for Key Management (Including the CEO)

The Human Resources Department is responsible for the selection and development of succession candidates. Through performance evaluations, competency assessments, and management development programs, the Company continuously monitors the progress of succession planning.

1. Succession Candidates

The current key management personnel of the Company are as follows:

• Chairman: Mr. Cheng-Hsien Wu
• Chief Executive Officer: Mr. Ming-Hsien Hsu

Succession candidates for the Chairman and CEO are primarily cultivated from senior executives across the Company’s business groups, including:

• Mr. Ying-Lin Huang, Executive General Manager, Sports Goods Adhesives and Materials Business Division (since August 2023)
• Mr. Sen-Mao Kuo, Executive General Manager, Adhesives and Specialty Business Division (since April 2020)
• Mr. Shuen-Hsing Wu, Executive General Manager, Paints and Coatings Business Division (since August 2022)

The above executives possess extensive industry experience and comprehensive business management expertise and have been identified as key candidates for future senior leadership positions.

2. Expected Timeline for Succession

The current CEO, Mr. Ming-Hsien Hsu, is expected to retire at the end of 2026 upon reaching the age of 65, in accordance with the Company’s policies. The Board will select a suitable successor from the pool of candidates to assume the role of CEO. The retiring CEO will transition to an advisory role and assist the incoming CEO during the transition period to ensure a smooth handover of operations and strategic direction.

Succession for the Chairman will be conducted in alignment with the Board re-election schedule, with the Board electing a suitable director to serve as Chairman in accordance with corporate governance practices.

3. Training and Development Programs and Implementation

To enhance the managerial capabilities of succession candidates, the Company has implemented the following development mechanisms:

(1) High-Potential Talent Identification System
The Company has established a key position succession system to identify high-potential management talent through performance evaluations and competency assessments. Individual Development Programs (IDPs) are formulated to strengthen leadership and management capabilities.

(2) Cross-Business and International Exposure
Through cross-business assignments, overseas market engagement, major client visits, and participation in group investment and strategic projects, the Company cultivates international perspectives and strategic thinking among succession candidates. The Company also encourages participation in executive education programs such as EMBA courses. In 2024, the Company organized “CEO Talk” sessions to facilitate exchanges between senior executives and domestic and overseas managers, enhancing global operations and cross-cultural management capabilities.

(3) 360-Degree Leadership Evaluation System
A 360-degree evaluation system is implemented to collect feedback from supervisors, peers, and subordinates, providing a comprehensive assessment of leadership capabilities and management performance. The results are used to further strengthen managerial competencies.

(4) Management Training and Continuous Improvement Mechanism
In recent years, training programs for key management personnel have included:

• 2021: Market-Oriented Management, Financial Statement Analysis, Carbon Management Trends
• 2022: Climate Change Risks, Sustainable Products, Greenhouse Gas Inventory
• 2023: Risk Management Workshops, TCFD Climate Risk, and ESG-related courses

In addition, the Company established a Continuous Improvement Team (CIT) in 2022 to promote cross-departmental improvement projects and knowledge-sharing mechanisms, enhancing organizational innovation and management efficiency.

(5) Implementation of Succession Planning
The Company promotes management succession through promotion and job rotation systems. In 2025, Mr. Kun-Chin Lin, Associate Vice President of the Finance Division, was appointed as CFO of a major investee company, and Mr. Yu-Ping Sun succeeded as the Company’s head of finance, successfully completing the transition.

 

Through the above succession planning framework and development mechanisms, the Company has gradually established a stable management talent pipeline, ensuring the smooth succession of the Board and management team and supporting the Company’s long-term strategic development.

 

Emergency/Contingency Succession Procedures 

Beyond planned succession, Nan Pao Resins has also establishedemergency CEO succession procedures, regularly reviewed by the Board of Directors. These ensure organizational resilience, business continuity, and the minimization of unexpected disruptions, while maintaining alignment with the company’s overall strategy and sustainable growth.

 

Employee development program

• Coaching, Mentoring & Peer Networks

We operate a company-wide coaching and mentoring mechanism. Senior and external mentors provide one-on-one guidance; new managers are paired with mentors for 6–12 months to support cultural onboarding, role transition, and professional skill building. Programs embed CIT/8D project practice and Gate Reviews to strengthen questioning, feedback, and motivation skills, creating a “leaders develop leaders” cycle. We also run cross-functional CIT improvement teams/small groups. Teams are convened by project owners, led by group leads, and supported by internal/external facilitators; the 8D workflow guides problem focus, root-cause analysis, solution validation, and standardization, with weekly or biweekly checkpoints for knowledge sharing. Together with our broader HR initiatives, Taiwan’s turnover decreased by 5.5 percentage points year over year.

 

• Leadership Pathways

Role-differentiated paths develop senior, middle, and frontline managers, plus individual contributors. Content includes strategic perspective and industry insight (senior), cross-department integration and 360-degree feedback (middle), problem solving/shadowing/behavioral practice (frontline), and self-management and influence (ICs). The learning architecture combines online courses, workshops, case-based learning, and action learning; outcomes are reviewed via Gate Reviews and best-practice dissemination.

 

• Cultural Integration

With headquarters in Taiwan and operations across Greater China, Vietnam, Thailand, India, and Australia, we emphasize localization and cross-cultural collaboration. Subsidiary GMs align corporate values and management practices; we hold regular coordination meetings (weekly/biweekly/as needed) and provide local-language and cultural programs to help overseas teams integrate and perform.

 

• Digital Capability

We are building an AI learning system centered on “small-class, on-the-job application.” During the reporting period we launched 4 modules covering AI tool fundamentals and practical workplace use, for a cumulative 42 training hours. By year-end 2024, six departments had embedded AI into daily workflows, improving turnaround time and operational efficiency in tasks such as document summarization, visual report production, data classification and de-identification, and adherence to internal AI usage guidelines (data classification, privacy, review/approval, and citation standards).

 

• Career Transitions

 For retiring colleagues, we provide one-stop assistance (applications and settlement for labor/health/old-age benefits, with streamlined procedures completed before entitlement payment), along with retirement ceremonies and counseling on post-retirement life arrangements.