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.

  

Succession Planning and Operation of Key Management Positions 

In alignment with the company’s long-term strategic development, Nan Pao Resins has established succession planning mechanisms to identify and cultivate high-potential talents as future successors. When evaluating key management positions, we not only emphasize professional expertise and leadership competence but also require successors to embody the company’s values and corporate philosophy. Currently, there are 17 executives at the associate general manager level and above, with management structures organized across departments and hierarchies. Succession planning is implemented at all levels to ensure candidates are equipped with the competencies required for the next level of leadership, thereby supporting organizational growth and operational resilience.

 

Key Elements of Succession Planning

• Selection of High-Potential Talents
  Key positions are defined and successors nominated for each role, with readiness timelines assessed. Individual Development Programs (IDPs) are implemented, combining competency evaluation with corporate and departmental objectives, to strengthen capabilities required for current and future roles.

• Rotational Assignments Across Subsidiaries
  Rotation within group subsidiaries and affiliates provides opportunities to broaden managerial experience.

• Chairman Succession (within 2–3 years)
  Candidates for Chairman are either nominated by major shareholders or jointly selected by senior executives, ensuring credibility and organizational recognition. In evaluating successors, emphasis is placed on extensive management experience, integrity, and commitment to long-term corporate development.

• CEO Succession (within 2–3 years)
  Priority is given to first-level executives as successors, with training focused on strategic thinking, cross-group management, mergers and acquisitions, business development with key domestic and international customers, and participation in investment projects. Candidates are encouraged to pursue lifelong learning, including EMBA programs. In 2024, CEO Talk sessions were launched to strengthen successors’ global business insights and cross-cultural collaboration skills.

 

Training and Development for Key Management 

• 360-Degree Evaluation
  Regular 360-degree feedback is conducted, integrating perspectives from superiors, peers, and subordinates to assess managerial performance. Selected successors with global potential receive tailored IDPs that include international exposure, major project responsibilities such as plant construction, and training in digitalization and automation to enhance innovation and market responsiveness.

• Promotion and Advancement Mechanisms
  Annual promotion reviews ensure outstanding talents are elevated to leadership positions. For example, following the retirements of several general managers between 2020–2023, successors were identified and trained to maintain operational stability. In 2024, succession planning for the General Manager of Kunshan Plant prioritized candidates with international vision, supported by region-specific training tailored to both the China market and global business needs.

• Annual Leadership Training Programs
  Recent training courses include:

  • 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, ESG Training Programs, CIT activities (Continuous Improvement Teams) for cross-departmental collaboration, experience sharing, and competitions.

  • 2024: Participation in external CIT competitions, digital transformation seminars, R&D workshops, and crisis management forums, engaging both domestic and overseas executives to promote cross-cultural knowledge exchange.

 

Emergency/Contingency Succession Procedures 

Beyond planned succession, Nan Pao Resins has also established emergency 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.