Sustainability Implementation Status

Implementation Item

Implementation Status

Discrepancies with TWSE/TPEx Principles & Reasons

Yes

Summary/Description

1. Whether the company has established a governance framework for promoting sustainable development, set up a dedicated (or concurrent) unit for sustainability promotion, authorized senior management by the Board of Directors to handle it, and the status of Board supervision？

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To drive our sustainable development initiatives, the Company established a Sustainability Task Force in 2025. Chaired by Chairman Chen Chih-Hsin, the task force is responsible for formulating corporate sustainability policies, overseeing performance, and defining management approaches.
To ensure the Board of Directors maintains strategic oversight, the Sustainability Task Force reports on the implementation progress of sustainability initiatives to the Board at least once a year.

None

2. Does the company conduct risk assessments on environmental, social, and corporate governance (ESG) issues material to its operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies？

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In accordance with the materiality principle, the Company identifies material ESG issues related to its operations, conducting regular risk assessments and impact analyses to serve as the foundation for risk management policies and strategic planning across all sites, including Taiwan. Based on the assessment results, the Company has established internal control systems and management regulations covering major operational risks, regulatory compliance, sustainable development, and stakeholder concerns. Through regular internal audits, operational supervision, and performance review mechanisms, the Company continuously tracks the implementation and effectiveness of management measures to mitigate operational impacts and enhance overall governance quality.

Material Topic	Risk Assessment Item	Risk Management Strategy Description
Environmental	Climate Change and Extreme Weather Impacts	1. Establish Greenhouse Gas (GHG) Inventory and Carbon Reduction Plans 2. Regularly track regulatory changes and prepare responses in advance.
Social	Supply Chain Labor or Human Rights Issues	Formulate and audit the Supplier Code of Conduct.
Governance	Internal Control Systems and Regulatory Compliance	Conduct regular internal audits and risk assessments.

None

3. Environmental Issues
(1)Has the company established an appropriate environmental management system (EMS) based on its industry characteristics？

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Based on our operational characteristics, we have established continuous training and internal audits focusing on key environmental aspects, including energy consumption, process waste management, and air and water resource management. These initiatives aim to enhance environmental awareness among all employees and ensure periodic reviews and improvements of relevant systems, thereby fulfilling the corporation's responsibility and commitment to environmental sustainability.

None

(2)Does the company strive to improve energy efficiency and utilize recycled materials with low environmental impact？

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The Company remains continuously dedicated to enhancing the utilization efficiency of all resources. In terms of improving energy efficiency, we consistently introduce energy-saving equipment, such as LED lighting, and conduct regular equipment performance inspections to minimize energy consumption. Furthermore, we actively explore and evaluate the feasibility of alternative renewable or environmentally friendly materials to serve as a reference for future procurement and product design.

None

(3)Does the company assess the potential climate-related risks and opportunities for its current and future operations, and take relevant response measures？

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The Company has completed assessments of the potential climate-related risks and opportunities impacting both current and future operations. To strengthen our climate risk management and financial resilience, we have adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework. We formulate corresponding response strategies and preventive measures against the physical and transition risks that climate change may bring, while reasonably evaluating their financial impacts. The relevant assessment outcomes, risk mitigation strategies, and financial implications are appropriately disclosed in our Sustainability Report.

None

(4)Does the company compile statistics on greenhouse gas emissions, water consumption, and total waste weight over the past two years, and formulate policies for greenhouse gas reduction, water reduction, or other waste management？

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The Company has compiled its greenhouse gas (GHG) emissions and water consumption data over the past two years, and continues to establish its waste management mechanisms. In 2024, our GHG emissions were approximately 2,710.414 metric tons of CO2e, and our water consumption was approximately 43,490 liters. To minimize our environmental footprint, we have implemented relevant management policies and improvement measures:
•GHG Reduction: We promote air conditioning system upgrades, introduce high-efficiency chillers, transition entirely to LED lighting, and optimize power management.
•Water Management: We continuously enhance water efficiency through consumption data monitoring, facility leak prevention and maintenance, and employee awareness campaigns.
•Waste Management: We implement reduction and recycling strategies, moving toward the goals of reducing total waste generated and increasing resource recycling and reuse.

None

4. Social Issues
(1)Has the company formulated relevant management policies and procedures in accordance with local regulations and international human rights covenants？

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The Company highly values the protection of human rights. We support international human rights standards, such as the United Nations Universal Declaration of Human Rights and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work. Concurrently, we strictly adhere to local labor and workplace safety regulations to ensure a safe and dignified working environment for all employees.。
Furthermore, we have integrated provisions regarding equal treatment, anti-discrimination, and the prohibition of forced labor and child labor into our personnel policies, employee handbook, and occupational safety and health regulations, serving as the foundational basis for our human resource management and labor practices.

None

(2)Does the company formulate and implement reasonable employee welfare measures (including compensation, leave, and other benefits), and appropriately reflect operational performance or achievements in employee compensation?？

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The Company has established a comprehensive employee welfare and compensation system covering salary packages, leave arrangements, and various benefit programs. Business performance is appropriately reflected in employee remuneration to align incentives and share business fruits.
Remuneration Governance: The Board has established a Remuneration Committee responsible for formulating and regularly reviewing the performance appraisal mechanisms and compensation policies, systems, standards, and structures for directors and executives to ensure transparency and rationality.
Performance-Linked Compensation: A performance-driven appraisal system is implemented, where evaluation results serve as the primary basis for salary adjustments, bonus distribution, and compensation allocation, strengthening the link between incentives and employee contributions.
Incentive System: Bonuses are distributed based on annual corporate performance, net profit, and individual performance appraisals, ensuring a balanced consideration of organizational success and employee contribution to enhance morale and cohesion.
Welfare Benefits: Employee Welfare Funds are allocated according to regulations, enabling the Employee Welfare Committee to manage subsidies (including marriage, childbirth, education scholarships, retirement, and bereavement support for employees/dependents), holiday bonuses, birthday gifts, and group insurance.

None

(3)Does the company provide a safe and healthy working environment for employees, and conduct regular safety and health and safety education？

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To protect employee safety and health, the Company regularly conducts safety training covering occupational risk identification, disaster response, first-aid knowledge, and health maintenance. All new hires and current employees are required to undergo occupational health and safety training.
Furthermore, to enhance employee wellness, we provide on-site medical and nursing services, where professional medical personnel visit the workplace periodically to offer health counseling and emergency medical interventions, ensuring comprehensive care for employees' physical and mental well-being.

None

(4)Does the company establish effective career development and competency training programs for its employees？

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The Company offers diverse career development paths and tailors professional skill enhancement courses according to different functional areas, covering sales, technology, management, and more. These training initiatives include internal seminars, external expert training, as well as job rotations and cross-departmental collaborations to facilitate learning and growth through practice.
To support multifaceted career development, we conduct regular performance reviews and development dialogues with employees, ensuring they can unleash their full potential and move toward future career goals.

None

(5)Does the company comply with relevant regulations and international standards regarding issues such as customer health and safety, customer privacy, marketing, and labeling of products and services, and has it formulated policies and grievance mechanisms to protect consumer or customer rights？

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The Company strictly complies with relevant regulations and international guidelines concerning customer health and safety, customer privacy, and marketing/labeling for products and services. We have established management systems and processing procedures to safeguard customer rights and transaction integrity.
1. Product Health and Safety: In accordance with the Product Safety Act, occupational safety and health regulations, and standards of the customer's location, the Company enforces strict quality inspection and risk control from design and manufacturing to shipment. This ensures product safety and stability during B2B utilization. Technical specifications and testing procedures are updated regularly based on customer requests or industry regulations.
2. Customer Privacy and Trade Secret Protection: In compliance with the Personal Data Protection Act and the Trade Secrets Act, the Company properly handles technical documents, contracts, and operational information provided by customers. An internal information security management mechanism has been built, incorporating account access controls and data transmission encryption to strictly prevent unauthorized access or leaks. Cybersecurity responsibilities are integrated into employee training and operational codes to ensure customer trust is uncompromised.
3. Marketing and Labeling: Although the Company does not conduct public marketing to end consumers, we still uphold the principles of integrity. In accordance with the Fair Trade Act and business communication ethics, we provide true, complete, and clear product information in product catalogs, technical manuals, contracts, and business documents, avoiding exaggeration or misleading descriptions, enabling customers to make decisions based on accurate information.
4. Grievance Procedures: Customer service windows and dedicated sales units are established to handle customer feedback and grievances. Customers can raise issues and opinions through email, sales systems, or designated contacts. Grievances will be accepted, processed, and replied to according to internal Standard Operating Procedures (SOP).

None

(6)Does the company establish supplier management policies that require suppliers to comply with relevant regulations on environmental protection, occupational safety and health, or labor human rights, and what is the implementation status？

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Out of consideration for corporate sustainability and social responsibility, the Company has established a supplier management policy and evaluation mechanism, integrating environmental protection, occupational safety and health, and labor human rights into our supply chain management principles. During supplier selection, collaboration, and renewal processes, suppliers are required to commit to compliance with relevant laws and regulations, such as the Basic Environment Act, the Occupational Safety and Health Act, the Labor Standards Act, and the core conventions of the International Labour Organization (ILO).
The Company requires all suppliers to sign the Supplier Sustainability Commitment Letter, explicitly promising no child or forced labor in their operations, ensuring workplace safety, regulatory environmental compliance, and providing employees with reasonable compensation and rest time. This commitment letter also covers specific items, including environmental/energy-saving policies, measures, and occupational safety training, serving as the fundamental ethics and guidelines for mutual cooperation.

None

5. Does the company refer to internationally recognized reporting standards or guidelines to prepare sustainability reports or other reports disclosing non-financial information? Have the aforementioned reports obtained assurance or verification opinions from a third-party verification body？

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In 2025, the Company prepared its first bilingual (Chinese and English) Sustainability Report. The report refers to the Global Reporting Initiative (GRI) Standards, the International Integrated Reporting (IR) Framework, and relevant manufacturing metrics from the Sustainability Accounting Standards Board (SASB). It also follows the sustainability disclosure regulations of the Taiwan Stock Exchange (TWSE) to demonstrate the Company's management approaches, implementation achievements, and sustainable development commitments across ESG dimensions.

The Company will comply with the provisions of the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies in the future.

6. If the company has established its own sustainable development principles based on the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies," please describe its operational status and any discrepancies with the established principles：
■The Company has formulated its "Sustainable Development Best Practice Principles" and continues to implement sustainability initiatives in accordance with the substance and relevant provisions of these principles.
■The initial edition of the Sustainability Report was compiled in 2025. The Company will continue to improve the quality of sustainability reporting in the future.

7. Other important information that facilitates better understanding of the status of sustainable development implementation：
■Community Contribution and Social Philanthropy：The Company actively participates in various social philanthropic activities. Relevant initiatives include: desk and chair fundraising for overseas Chinese schools in Northern Thailand by the National Association of Small and Medium Enterprises; purchasing charity Chinese New Year Eve meals for the Yunlin Muxin Service Association in 2023; supporting the Genesis Social Welfare Foundation's charity carnival; donating to blood drives organized by the Homei Rotary Club; participating in the Changhua Industry-Academia Advancement Association; and sponsoring the National Industry-Academia Innovation Practical Competition held by the College of Engineering at National Changhua University of Education (NCUE). Furthermore, since 2021, the Company has consistently exceeded the statutory quota for hiring persons with disabilities every year.
■Community Services：To promote social welfare, the Company has long partnered with educational authorities and universities on industry-academia educational collaboration projects. We aim to leverage synergies by integrating corporate and campus resources, thereby cultivating the Company's human capital and offering more opportunities to young students. Our current partners include National Chin-Yi University of Technology, National Formosa University, National Yunlin University of Science and Technology, Chienkuo Technology University, and National Changhua University of Education, among others.