Good Corporate Governance

SHR conducts its business with transparency, fairness, and adherence to the principles of good corporate governance. The Company has established a clear management structure that separates the roles and responsibilities of the Board of Directors and the executive management to ensure transparency and accountability.

The Board of Directors comprises qualified professionals who meet all relevant legal requirements. SHR believes that operating under good governance principles enhances credibility, strengthens competitive capability, and fosters strong relationships with all stakeholders.Further details can be found in the Company’s Annual Report (Form 56-1 One Report) and Sustainability Report.

Performance

Business Opportunities and Risks

Operating with good corporate governance enhances trust and credibility among all stakeholders, while also creating opportunities for collaboration to drive sustainable organizational development. However, the absence of effective mechanisms to support and integrate governance practices may negatively impact the Company’s reputation, stakeholder confidence, and its ability to respond to risks associated with climate change.