Corporate Sustainability

Arizon Group｜Succession Planning for the Board and Critical Positions

Arizon RFID Technology Group recognizes that a stable and continuous leadership structure is essential to long-term sustainability.
As the Group undergoes rapid growth and organizational transformation, we have initiated a formal succession planning framework for both Board members and critical positions.
The framework aims to ensure leadership continuity and operational stability amid business expansion and evolving organizational needs.

Board Succession Planning

Members of the Board are nominated by major shareholders and elected at the shareholders’ meeting.

All directors are required to possess relevant expertise in business management, finance, law, or industry-specific experience.

Arizon has established clear qualification standards and succession criteria for Board positions. Future director nominations and replacements will be assessed against these standards to maintain a balanced mix of professional competence and diversity within the Board.

To strengthen governance capabilities, each director participates in approximately 6 to 18 hours of annual training covering topics such as corporate governance, finance, risk management, and sustainability. These learning programs form the foundation for developing future Board successors and ensuring continued governance effectiveness.

Succession Planning for Critical Positions

Given that the Group is currently in a phase of rapid growth and organizational transformation, many critical positions—such as Chief Human Resources Officer, Chief Financial Officer, and Chief Operating Officer—have been newly established or restructured in recent years.
At this stage, the focus of succession planning is on building a formalized framework and talent mapping mechanism that will guide long-term leadership development.

Current initiatives include:

1. Identifying Critical Roles and Successor Pools
   The Group has completed the first round of critical-position mapping, covering roles such as Chairperson, CEO, COO, and other functional heads.
   As the organization continues to evolve, some positions do not yet have suitable internal successors. To address this, Arizon adopts a dual strategy of external recruitment and internal development, building the capabilities needed for transformation while gradually forming long-term internal talent pipelines.
2. Developing Potential Successors
   High-potential managers are provided with opportunities through project assignments, cross-functional collaboration, and on-the-job training to strengthen their management and decision-making skills.
   Supervisors conduct regular coaching and performance reviews to track readiness and support leadership development planning.
3. Institutionalization and Annual Review
   Succession planning is being formalized as part of the Group’s human resources management system.
   Key roles, successor lists, and development progress will be incorporated into the annual HR planning and review process, enabling continuous monitoring and dynamic updates.

Implementation Example

In 2023, Arizon began piloting the succession planning framework at the operational-center level for selected critical positions.

Mr. Chou Chih-Hao (Josh Chou) joined the Group in August 2023 as Special Assistant to the General Manager of the Yangzhou Operations Center. Over two years, he supported cross-regional coordination and the establishment of the Vietnam plant.

In September 2025, he officially assumed the role of General Director of the Hung An (Vietnam) factory.
This case demonstrates the Group’s initial success in applying its succession planning approach and provides a concrete reference for further institutionalization.

Future Direction

Succession planning has been integrated into Arizon’s mid- to long-term talent strategy and will continue to evolve alongside the Group’s development. Going forward, Arizon will:

• Regularly review critical positions and the readiness of potential successors;
• Develop external talent databases and partnerships for positions without internal candidates to ensure leadership continuity;
• Gradually implement succession development programs, linking outcomes with annual performance and talent assessments, and disclose progress in the annual HR report.

Through a systematic and transparent approach, Arizon aims to build a robust and sustainable leadership succession framework that supports the Group’s continued growth and transformation.