Stock Code: 3628

2026

CALENDAR

2025 Annual Report

Printed on Apr 21, 2026

Ablerex Electronics Co. annual report is available at:

http://www.ablerex.com.tw

Taiwan Stock Exchange Market Observation Post System:

http://newmops.twse.com.tw

Ablerex

Stock Code: 3628

Ablerex Electronics Co., Ltd.

2025Annual Report

Notice to readers

This English version annual report is a summary translation of the Chinese version and is not an official document of the shareholders' meeting. If there is any discrepancy between the English version and Chinese version, the Chinese version shall prevail.

Taiwan Stock Exchange Market Observation Post System:

http://newmops.twse.com.tw

Ablerex Electronics Co. annual report is available at :

http://www.ablerex.com.tw

Printed on Apr 21, 2026

The name, professional title, contact number, and email address of the company's spokesperson and acting spokesperson.

Spokesperson
Name: Z.F. Lin
Title: Manager of Financial Dept.
Tel: 886-2-2917-6857
E-mail: [email protected]

Deputy Spokesperson
Name: Damon Chao
Title: Corporate Governance Officer/Special Assistant
Tel: 886-2-2917-6857
E-mail: [email protected]

Headquarters and Plant

Headquarters
Address: 1F., No.3, Ln. 7, Baogao Rd., Xindian Dist., New Taipei City 231, Taiwan (R.O.C.)
Tel: 886-2-2917-6857

Plant
Address: No.1-1, Gongye Rd., Pingtung City, Pingtung County 900, Taiwan (R.O.C.)
Tel: 886-8-7230091

The name, address, website, and telephone number of the stock transfer agency.

Stock Affairs Service Agent Department of Fubon Securities Corporation
Address: 11F., No.17, Xuchang St, Zhongzheng Dist, Taipei City 100, Taiwan (R.O.C.)
Tel: 886-2-2361-1300
Website: www.fbs.com.tw

The name, firm name, address, website, and phone number of the accountant responsible for the most recent annual financial report.

PricewaterhouseCoopers Taiwan
Auditors: S.K. Lin/CPA and K.H. Lin/CPA
Address: 27F., No.333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.)
Tel.: 886-2-2729-6666
Website: www.pwc.com.tw

The name of the trading venue where overseas securities are listed and traded, and the method for querying information about the overseas securities: N/A
Corporate Website
http://www.ablerex.com.tw

I. Letter to Shareholders ... 1

II. Corporate Governance Operation ... 8
2.1 Directors and Management Team ... 8
2.2 Remuneration of Directors, President and Vice Presidents ... 18
2.3 Implementation of Corporate Governance ... 24
2.4 Information Regarding the Company's Audit Fee, Replacement and Independence ... 104
2.5 CPA's changing information within 2 years: ... 105
2.6 The Chairman, General Manager and Financial or Accounting Managers of the Company who had worked for the independent Auditor or the related party in the most recent years: None 106
2.7 Information on Net Change in Shareholders and Net Change in Shares Pledged by Directors, Department Heads and Shareholders of 10% shareholding or more ... 106
2.8 Shareholders who hold the top ten shareholdings, information about each other's relatives within the spouse, second parents, etc.: ... 107
2.9 Number of shares held in the same investee by the Company, its directors, managers, and enterprises directly or indirectly controlled by the Company, with the aggregate shareholding percentage calculated on a consolidated basis.: ... 108

III. Capital Overview ... 109
3.1 Capital and Shares ... 109
3.2 Bonds: None ... 114
3.3 Preferred Shares: None ... 114
3.4 Global Depository Receipts: None ... 114
3.5 Employee Stock Options: None ... 114
3.6 Restricted Employee Shares: None ... 114
3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions: None ... 114
3.8 Financing Plans and Implementation: None ... 114

IV. Operational Highlights ... 115
4.1 Business Activities ... 115
4.2 Market and Sales Overview ... 134
4.3 Human Resources Analysis ... 141
4.4 Environmental protection Expenditure ... 142
4.5 Labor Relations ... 142
4.6 Cyber security risk management ... 145
4.7 Important Contracts ... 150

V. Review of Financial Conditions, Financial Performance and Risk Management ... 152
5.1 Condensed Financial Position – Under IFRSs ... 152
5.2 Financial Performance ... 153
5.3 Analysis of Cash Flow ... 154

5.4 Impact of major capital expenditure on finance and business: None. 155
5.5 Investment policies, reasons for gain or loss and improvement plan regarding investment plans in current year and the next year 155
5.6 Risk Management and Evaluation until the report printed. 156
5.7 Other important matters: None 163

VI. Special Disclosure 164

6.1 Consolidated financial statements of the related party 164
6.2 Subscription of marketable securities privately in the most recent years and up to the date of the report printed: None. 167
6.3 Supplementary disclosures: Commitment matters and handling situation for OTC as: 168

VII. Occurrence of events defined in Securities and Exchange Act Article 36.3.2 that has great impact on shareholder's equity or security price in the most recent years and up to the date of the report printed: N/A 168

I. Letter to Shareholders

Dear Shareholders, Ladies and Gentlemen:

First and foremost, I would like to express my gratitude to all shareholders for your invaluable support over the past year. The following is a report to you on the Company's operating results for 2025 and its future outlook for 2026.

Operating Performance in 2025

The Company's consolidated operating revenue for the fiscal year 2025 was NTD3,355,284 thousand, representing a growth of 10.95% compared to NTD3,024,134 thousand in the previous period. Consolidated net profit after tax was NTD180,357 thousand, an increase of 85.50% from NTD97,230 thousand in the previous period. (As shown in the table below)

Unit: NT$ thousands

Item	2025	2024	Growth Rate(%)
Sales Revenue	3,355,284	3,024,134	10.95%
Gross profit	997,910	799,080	24.88%
Operating income	250,489	99,090	152.79%
Net income	180,357	97,230	85.50%
Profit attributable to parenting company	180,903	96,642	87.19%
EPS (NTD)-after tax	4.02	2.15	86.98%

Overview and results of the implementation of the 2025 business plan

The Group's revenue and profit for the fiscal year 2025 exceeded budget projections, with overall performance remaining stable. By region, the United States, Taiwan, and Japan were the primary drivers of growth. By product category, project engineering delivered the most outstanding performance and was the main contributor to revenue growth; however, other product lines fell short of expectations.

The underperformance in overseas markets was primarily attributed to several factors: In Mainland China, the persistently weak economy led to conservative consumption and investment, along with intensified market competition, which impacted the performance of the Beijing office and parts of the ODM business. In the Southeast Asian market, spillover effects from new U.S. tariff measures and depreciation of regional currencies intensified price competition and slowed demand. In the Latin American market, shipping disruptions due to the Middle East conflict prevented timely inventory fulfillment for orders, resulting in lost business opportunities. Furthermore, the ODM business heavily relies on securing customer tenders; however, the majority of customer bids in 2025 did not

yield the expected results, which also dampened order momentum. Overall, performance varied across different regions and product categories.

In the domestic market, benefiting from the surging demand for AI chips, related supply chain manufacturers successively increased capital investments to expand production lines. Coupled with ongoing upgrades and construction of IDC server rooms and periodic equipment replacement needs, project engineering revenue in 2025 experienced another wave of high demand following the wave of Taiwanese businesses relocating back. This category's revenue grew by more than $30\%$ compared to 2024. Revenue from solar power converters continued to decline due to developmental bottlenecks in the domestic market, product oversupply, significant price drops, and nearly stagnant demand growth.

The Company's operating revenue consists of sales revenue and service revenue. Comparing the contributions of the five main product categories' sales revenue and service revenue to the previous year, three categories experienced sales growth in 2025. Ranked by the amount of growth from highest to lowest, they are: Project Engineering, Other (components, batteries, etc.), and Service Revenue. Notably, Project Engineering saw a significant growth of $33.83\%$ , making it the primary driver of revenue growth in 2025. Conversely, revenue from Active Power Filters, Solar Power Converters, and Uninterruptible Power Supply systems declined. As the total increase in revenue from the growing categories exceeded the total decrease from the declining categories, total revenue for 2025 reached NTD3,355,284 thousand, an increase of NTD331,150 thousand compared to 2024, representing a growth rate of $10.95\%$ .

The Company's total operating expenses for the fiscal year 2025 were NTD3,104,795 thousand, an increase of NTD179,751 thousand (6.15%) compared to NTD2,925,044 thousand in 2024. This includes an increase of NTD132,320 thousand in cost of goods sold and an increase of NTD47,431 thousand in operating expenses. As the gross margin in 2025 was higher than in 2024, the increase in cost of goods sold primarily reflects the growth in operating revenue. Regarding operating expenses, research and development expenses continued to increase due to the Company's development strategy and talent retention needs, while selling expenses increased significantly in line with business development activities and performance-based incentives.

Major indicators of operating performance in 2025 are as the table below:

Unit: NT$ thousands

Item	2025	2024	Variation / Percentage(%)
Return on Assets	5.32%	3.08%	+2.24 pp
Return on Shareholders' Equity	10.53%	5.66%	+4.87 pp
Operating Income to Capital (%)	55.66%	22.02%	+33.64 pp
Profit before Tax to Capital (%)	53.03%	29.60%	+23.43 pp
Net Profit Margin	5.38%	3.22%	+2.16 pp
EPS (NT$)-after tax	4.02	2.15	86.98%

The Company's operating revenue for the fiscal year 2025 was NTD3,355,284 thousand, an increase of 10.95% compared to 2024. Benefiting from an improved gross margin, gross profit increased by 24.88%. The growth rate of gross profit exceeded that of operating revenue, indicating the effectiveness of product mix optimization and cost control measures.

Operating expenses increased alongside the expansion of business scale. However, the growth rate of expenses was lower than the gross profit growth rate, resulting in operating profit of NTD250,489 thousand, a significant increase of 152.79% compared to 2024. This demonstrates a clear enhancement in the profitability of the core business.

Regarding non-operating income and expenses, the impact of exchange losses in 2025 adversely affected non-operating results. Nevertheless, supported by substantial growth in core business profits, net profit for the period reached NTD180,357 thousand, an 85.50% increase compared to 2024. The net profit margin improved from 3.22% to 5.38%, an increase of 2.16 percentage points, indicating continued improvement in overall profitability.

In terms of operating performance indicators for 2025, the return on assets increased from 3.08% to 5.32%, and the return on equity increased from 5.66% to 10.53%. Operating profit as a percentage of paid-in capital rose from 22.02% to 55.66%, and pre-tax profit as a percentage of paid-in capital increased from 29.60% to 53.03%. Earnings per share (after tax) was NTD4.02, an 86.98% increase from NTD2.15 in 2024. All asset and capital utilization performance indicators were superior to those of 2024.

In summary, the Company's overall operating performance in 2025 significantly improved compared to 2024. The profitability of the core business was strengthened, effectively driving improvements in overall profit and capital utilization efficiency.

3. Business Plan for 2026

A. Business guidelines

In terms of business development, we will continue our localized operational strategy, passing on and expanding the Group's technical service experience and advantages of being "Fast, Professional, and Integrated." This will enable each sales office to develop an Ablerex brand image with local characteristics and provide products and services that meet market demands. In our OEM/ODM business, we will leverage our technological independence to offer high cost-performance ODM services that satisfy diverse customer needs and strengthen customer loyalty. In R&D, we will deepen our expertise in power electronics control technology and introduce next-generation semiconductor materials, focusing on enhancing product technological value and power capacity. We will continue to advance towards larger scale,

modularization, and systematization, providing a more diverse and broader range of product portfolio solutions. In manufacturing, we will continue our intelligent initiatives by introducing automated production processes to reduce reliance on manual labor, improve manufacturing efficiency and energy utilization, and progress towards becoming a green factory.

B. Sales Forecasts and basis

The Company is a professional provider of power electronics products and services. Our operations include continuously expanding the ODM and OBM sales business in the international UPS market, actively participating in domestic UPS project engineering tenders and providing maintenance services, as well as marketing our own-brand solar power converters and energy storage systems. According to research conducted by market research institutions, the global UPS market, as well as the domestic solar and energy storage markets, all have room for growth. The Company aims to enhance overall profitability by increasing the sales volume and revenue of various products, and by actively striving to increase market share for each product category.

C. Major production and sales strategy

1. Production strategy:

In 2026, the Company will continue to introduce intelligent monitoring equipment deeper into the manufacturing process, strengthening operational effectiveness and continuously reducing quality risks. In response to the trend of rising labor costs, we will also increase the degree of process automation to reduce manpower requirements and enhance manufacturing effectiveness and efficiency.

2. Sales strategy:

Continuing with the localized operational strategy, we leverage our technological advantages and integrate them with the characteristics of different regional markets to provide integrated services ranging from design to after-sales support, and from planning to maintenance. This enables each sales office to develop a distinctive local Ablerex brand.

D. Research and Development Status

Adhering to the core belief of "Technological Independence," our R&D department continues to collaborate with academic institutions on applied research and development for three-phase, high-end, and high-capacity power electronics technology, solidifying our core capabilities in power conversion. By implementing the "Design for Manufacturability" concept, we enhance our R&D personnel's production- and market-oriented mindset, accelerating the speed of technology commercialization. Currently, the company's product design execution is advancing towards compactness, intelligence, modularization, and networking, improving

product cost-performance and market competitiveness. Simultaneously, we place greater emphasis on products with high technical value to strengthen the close ties with industries and customers, integrating with our local subsidiaries to build a technology ecosystem. In line with this approach, high-capacity, high-technology products such as the APF150A and UPS400kVA have been successfully launched, symbolizing a new milestone in the company's technological capabilities in power electronics product development and manufacturing. Furthermore, through active participation in domestic power ancillary services, we continuously calibrate the performance of our grid-scale energy storage products, achieving remarkable results.

4. The impact of the External Competitive Environment, Regulatory Environment and Macroeconomic Conditions

A. External Competitive Environment

Driven by the global trends of digitalization and energy transformation, the demand for power quality backup related to AI computing, virtualization, and the expansion of cloud data centers continues to grow, fueling market expansion for reliable power products such as Uninterruptible Power Supply (UPS) systems. According to the latest market research estimates, the global UPS market size is approximately between USD 11.5 billion and USD 15.5 billion, and is expected to continue growing steadily at a moderate rate in the future.

Additionally, the Energy Storage System (ESS) market continues to expand due to the strategic planning of renewable energy and the increasing demand for power system regulation. Market installations grew significantly in 2025, and are expected to maintain double-digit annual growth rates for the next several years.

In this competitive environment, although equipment supply prices and fluctuations in the Chinese supply chain may put pressure on costs, system integration and the development of high-efficiency technologies remain key to market competitiveness. With our core capabilities in power conversion and energy storage integration, the Company will continuously enhance the competitiveness of its products and services to respond to changes in market demand.

B. Regulatory Environment

The Company strictly adheres to various domestic and international policies, laws, and global standards, and continuously monitors regulatory changes to adjust internal systems and operational activities. Influenced by the global trends of carbon reduction and net-zero emissions, as well as ESG requirements within the supply chain, international demands regarding the Carbon Border Adjustment Mechanism (CBAM) and product carbon footprint disclosure have intensified. This has led customers and suppliers to impose stricter requirements for green supply chain management. Although UPS and power electronics products are not

currently within the scope of the first phase of industries directly subject to CBAM, there is still an indirect impact on supply chain and customer expectations.

Domestically, Taiwan has officially begun levying carbon fees and continues to refine policies and grid connection mechanisms related to renewable energy and energy storage. This benefits market demand for solar power converters and energy storage systems. The Company has completed the ISO 14064-1 greenhouse gas inventory and established product carbon footprint management. By continuing to invest in energy-saving technology R&D and green supply chain management, we are strengthening our compliance capabilities and enhancing our low-carbon competitive advantage.

C. Macroeconomic Conditions

According to the economic outlook report from the International Monetary Fund (IMF), the global economy is expected to experience moderate growth in 2026. This growth momentum is anticipated to stimulate investment demand for information technology equipment, manufacturing, and energy infrastructure. Overall demand for UPS and energy systems continues to benefit from factors such as data center expansion, industrial automation, and renewable energy deployment, indicating a solid foundation for medium to long-term market growth.

However, geopolitical risks, energy price volatility, and supply chain challenges remain significant variables in corporate cost and risk management. The Company will continue to pursue a prudent strategy, strengthening technological innovation and improving product efficiency, while maintaining stable operations and long-term growth potential through cost control measures and diversified market positioning.

Development Strategy

Adhering to its technology-oriented principle, Ablerex continues to invest in applied research for core power conversion technologies, product development, and service provision. In 2026, the Company will persist with its consistent business policy of technological independence and localized operations. We will continue to deeply cultivate the domestic market to solidify market share, while simultaneously enhancing the technical capabilities and service scope of our overseas subsidiaries. Concurrently, building upon the foundational technology for developing the 200KVA standalone three-phase UPS, we are accelerating the launch of modularized, large-scale, and systematized high-power, high-capacity products. For instance, the APF150A and UPS400kVA products have been successively introduced, alongside research into and application of next-generation semiconductor materials. By aggressively implementing an import substitution policy in domestic project business, we increase

operational flexibility and improve profit margins. This also demonstrates the company's capability to establish itself in the high-end product market and enhances its competitiveness in international ODM/OEM business. Furthermore, we will continue to integrate existing energy storage and green energy products, paired with energy control systems, to act as a supplier of grid-level energy regulation equipment and a provider of technical services. We aim to continue contributing to Taiwan's energy transition process and progressively demonstrate our influence.

All the best,

Chairman Wen Hsu and

President M.Z. Hwang

II. Corporate Governance Operation
2.1 Directors and Management Team
2.1.1 Directors 1

A. Directors

2026.3.31, Unit: Shares; %

Title	Nationality / Country of Origin	Name	Gender/Age	Date elected (or on board)	Term (Years)	Date of first elected (MM-DD-YYYY)	Shareholding when elected		Current shareholding		Spouse and Minors Shareholding		Shareholding by Nominate Arrangement		Experience (Education)	Other position	Executives, Directors or Supervisors who are spouses or within two degrees of kinship
				(MM-DD-YYYY)	(Years)		Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Chairman	ROC	Wen Hsu	M 61-70	06-27-2023	3	05-08-2002	9,477,177	21.06%	9,638,177	21.42%	219,973	0.49%	0	0	National Kaohsiung university of applied science/Honor Ph.D/Master of electronic engineering (MEE) Chairman & President of PEC Technology Co., Ltd.	Note 1	N/A	N/A	N/A
Vice Chairman	ROC	Y.A. Chen	M 71-80	06-27-2023	3	05-08-2002	2,485,763	5.52%	2,485,763	5.52%	0	0	0	0	National Chiao Tung University/Master of Institute of Traffic & Transportation Supervisor of United Integrated Services Co., Ltd. Chairman of Ablerex Electronics Co., Ltd.	Note 2	N/A	N/A	N/A
Director	ROC	UIS Co., Ltd.	-	06-27-2023	3	05-08-2002	14,986,502	33.30%	13,089,502	29.09%	0	0	0	0	N/A	-	N/A	N/A	N/A
		L.Y. Pan	F 61-70	01-02-2024	3	-	0	0.00%	0	0.00%	0	0	0	0	National Taipei College of Business/ Dept. of International Trade Supervisor of United Integrated Services Co., Ltd. Corporate Governance Officer of United Integrated Services Co., Ltd.	Note 3	N/A	N/A	N/A
Director	ROC	S.G. Wang	M 71-80	06-27-2023	3	06-23-2014	0	0.00%	0	0.00%	0	0	0	0	Chung Yuan Christian University/Bachelor of Civil Engineering Chief of team leader of Engineering Division, Taipei Water Department	Note 4	N/A	N/A	N/A
Director	ROC	J.K. Sung	M 51-60	06-27-2023	3	06-19-2017	244,921	0.54%	192,921	0.43%	0	0	0	0	National Kaohsiung university of applied science/Master of electronic engineering (MEE) Sales Manager of PEC Technology Co., Ltd. Ablerex Electronics FAE V.P.	Note 5	N/A	N/A	N/A
Director	ROC	J.H. Ho	M 61-70	06-27-2023	3	11-17-2009	0	0.00%	0	0.00%	0	0	0	0	University of Pittsburgh/Doctor of Economics Vice Executive Secretary of National Development Fund, Executive Yuan	Note 6	N/A	N/A	N/A
Ind. Director	ROC	Y.J. Ding	M 61-70	06-27-2023	3	11-17-2009	0	0.00%	0	0.00%	0	0	0	0	President of IBF Financial Holding Co., Ltd. Indiana University/Doctor of Philosophy. Chairman of IBF Securities Co., Ltd. Chairman of Waterland Securities Co., Ltd.	Note 7	N/A	N/A	N/A
Ind. Director	ROC	Y.L. Su	M 71-80	06-27-2023	3	06-19-2020	0	0.00%	0	0.00%	0	0	0	0	Ph.D. in System Engineering, Georgia Institute of Technology, CEO of General Energy Solutions Inc.	Note 8	N/A	N/A	N/A
Ind. Director	ROC	J.C. Hsieh	F 61-70	06-27-2023	3	06-27-2023	0	0.00%	0	0.00%	0	0	0	0	Doctor of Philosophy (Ph.D.), Institute of Land Economics, National Chengchi University Full-time Professor, Department and Institute of Land Management, Feng Chia University Agent Review Committees of Examination Yuan; Drafter, Grader, or Drafter-grader of examination subjects on Land Administration each year, Examination Yuan.	Note 9	N/A	N/A	N/A

Note 1. Wen Hsu Chairman, Ablerex Electronics Co., Ltd., CEO, Ablerex Electronics (Suzhou) Co., Ltd., Director, Ablerex corporation, Ablerex International Corp. Ltd., Ablerex Electronics (S) PTE Ltd. Director, Ablerex Electronics U.K. Ltd. Director, Ablerex Electronics Italy s.r.l. Director, Ablerex Electronics (Beijing) Co., Ltd.
Note 2. Y.A. Chen Vice Chairman, Ablerex Electronics Co., Ltd., Chairman, Ablerex Electronics (Suzhou) Co., Ltd., Director, Ablerex Electronics (Samoa) Co., Ltd. Director, Ablerex Overseas Corp Ltd., Director, Z-COM, incl., Director, Eco Energy Corporation.
Note 3. L.Y. Pan None.

Note 4. S.G. Wang
Honorary President of Chinese Taipei Society for Trenchless Technology, Procurement Committee Member of Public Construction commission, Executive Yuan.

Note 5. J.K. Sung
None.

Note 6. J.H. Ho
Independent Director of AMPACS Corporation, Independent Director of Ta Ya Electric Wire & Cable Co., Ltd, V. Chairman of CDIB capital management corporation, Chairman of CDIB Capital Healthcare Ventures Limited, Chairman of CDIB Private Equity (China) Corporation

Note 7. Y.J. Ding
Independent Director of Huaku development Co., Ltd, Independent Director of Yeashin International Development, Director of Altek Corporation

Note 8. Y.L. Su
Chairman, Surplux Energy Inc., Director, Z-Com, Inc.

Note 9. J.C. Hsieh
Committee Member, land-and-urban related Review Committees of Executive Yuan, or Local Cities and Counties, Committee Member, Land Administration Agent Review Committees of Examination Yuan; Examination Yuan's annual Land Administration Examination examiner, question-setting committee member, and grading committee member.

B. Major shareholders of Corporate Shareholders
Mar. 30, 2026

Name of Corporate Shareholders	Major shareholders of Corporate Shareholders
UIS Co., Ltd.	H.W. Lee (5.73%)
The Capital Taiwan Selected High-Yield ETF Fund Account (5.54%)
Lian-Yi Investment Co. (3.76%)
Taipei Fubon Commercial Bank Co., Ltd. serves as the custodian for Fuhua Taiwan Technology Premium ETF Securities Investment Trust Fund Special Account (2.97%)
G.Y. Wang (2.02%)
G.W. Wang (2.02%)
Trust Department, Hua Nan Commercial Bank, Ltd., as Custodian for Allianz Taiwan Technology Securities Investment Trust Fund Account(1.71%)
Taiwan Business Bank Co., Ltd., as Custodian for the SinoPac/ABF Taiwan Selected Dividend High Yield 30 ETF Securities Investment Trust Fund Account(1.27%)
Deutsche Bank AG, Taipei Branch, as Custodian for the St. James Emerging Markets Equity Unit Trust, Trustee: Nevilles Trustees Limited(1.22%)
Fu-Kuo Engineering Co., Ltd.(1.12%)

Data source: United Integrated Services Corp. [Stock code: 2404]

C. Major shareholders of the company's major Corporate Shareholders
Mar. 30, 2026

Name of Corporate Shareholders	Major shareholders
The Capital Taiwan Selected High-Yield ETF Fund Account (5.54%)	Capital Investment Trust Corporation(100.00%)
Lian-Yi Investment Co. (3.76%)	G.Y. Wang (25.20%)
Taipei Fubon Commercial Bank Co., Ltd. serves as the custodian for Fuhua Taiwan Technology Premium ETF Securities Investment Trust Fund Special Account (2.97%)	Taipei Fubon Commercial Bank Co., Ltd.(100.00%)
Trust Department, Hua Nan Commercial Bank, Ltd., as Custodian for Allianz Taiwan Technology Securities Investment Trust Fund Account(1.71%)	Hua Nan Commercial Bank(100.00%)
Taiwan Business Bank Co., Ltd., as Custodian for the SinoPac/ABF Taiwan Selected Dividend High Yield 30 ETF Securities Investment Trust Fund Account(1.27%)	Taiwan Business Bank Co., Ltd.(100.00%)
Deutsche Bank AG, Taipei Branch, as Custodian for the St. James Emerging Markets Equity Unit Trust, Trustee: Nevilles Trustees Limited(1.22%)	Deutsche Bank AG(100.00%)
Fu-Kuo Engineering Co., Ltd.(1.12%)	T.F. Hsu(32.00%)

Data source: United Integrated Services Corp. [Stock code: 2404]

2026.3.31

2.1.2 Directors 2

A. Professional Qualifications of Directors and Independence of Independent Directors:

| Eligibility
Name | Qualifications and experience (Note 1) | Independence status (Note 2) | Number of independent directors of other public companies |
| --- | --- | --- | --- |
| Wen Hsu | National Kaohsiung university of applied science/Honor PhD. /Master of electronic engineering (MEE)
Act as Chairman of Ablerex Electronics Co., Ltd.
Rich experience in business management, industry knowledge and international market | -NA- | 0 |
| Y.A. Chen | National Chiao Tung University/Master of Institute of Traffic & Transportation
Act as Vice Chairman of Ablerex Electronics Co., Ltd.
Rich experience in business management, industry knowledge and international market | -NA- | 0 |
| UIS Co., Ltd/ L.Y. Pan* | National Taipei College of Business/ Dept. of International Trade
Corporate Governance Officer of United Integrated Services Co., Ltd.
Rich experience in financial, accounting management and industry knowledge | -NA- | 0 |
| S.G. Wang | Chung Yuan Christian University / Bachelor of Civil Engineering
Act as Procurement Selection Member, Public Works Committee, Executive Yuan
Acted as Chief of team leader of Engineering Division, Taipei Water Department
Rich experience in business management and industry knowledge and Environmental Protection. | -NA- | 0 |
| J.K. Sung | National Kaohsiung university of applied science/Master of electronic engineering (MEE)
Act as Ablerex Electronics FAE V.P.
Rich experience in business management and industry knowledge. | -NA- | 0 |
| J.H. Ho | University of Pittsburgh/Doctor of Economics
Act as Chairman of CDIB Capital Healthcare Ventures Limited
Rich experience in business management, Finance and industry knowledge | -NA- | 2 |

Eligibility Name	Qualifications and experience (Note 1)	Independence status (Note 2)	Number of independent directors of other public companies
Y.J. Ding	Independent Director and Audit committee Indiana University/ PhD. In Economics. Act as Independent Director of Huaku development Co., Ltd, Independent Director of Yeashin International Development and Director of Altek Corporation Acted as President of IBF Financial Holding, Chairman of Waterland Securities Co., Ltd. Rich experience in business management, Finance and industry knowledge. None of the provisions of Article 30 of the Company Law.	Mr. Y.J. Ding, his spouse and relatives within the second degree have never served as directors, independent director or employees of the company or its related enterprises; he, his spouse, relatives within the second degree (or in the name of others) do not hold shares in the company; Moreover, he has not served as a director, independent director or employee of a company that has a specific relationship with the company; nor has he provided the company or its related companies with business, legal, financial, accounting and other services in the past two years.	2
Y.L. Su	Independent Director and member of Audit committee Ph.D. in System Engineering, Georgia Institute of Technology. Act as Chairman of Surplux Energy Inc., Director of Z-Com, Inc. Acted as CEO of United Renewable Energy Co., Ltd. CEO of General Administration of Arima Group. Rich experience in business management, Finance and industry knowledge. None of the provisions of Article 30 of the Company Law.	Mr. Y.L. Su, his spouse and relatives within the second degree have never served as directors, independent director or employees of the company or its related enterprises; he, his spouse, relatives within the second degree (or in the name of others) do not hold shares in the company; Moreover, he has not served as a director, independent director or employee of a company that has a specific relationship with the company; nor has he provided the company or its related companies with business, legal, financial, accounting and other services in the past two years.	0
J.C. Hsieh	Independent Director and member of Audit committee Doctor of Philosophy (Ph.D.), Institute of Land Economics, National Chengchi University Act as Committee Member, land-and-urban related Review Committees of Executive Yuan, or Local Cities and Counties, Committee Member, Land Administration Agent Review Committees of Examination Yuan; Examination Yuan's Land Administration Examination examiner, question-setting committee member, and grading committee member. Acted as Consultant of Square Development Co., Ltd., Consultant of Cin Ly Engineering Consultants, Inc., Full-time Professor at the Department of Land Management, Feng Chia University. Rich experience in business management, Finance and industry knowledge. None of the provisions of Article 30 of the Company Law.	Ms. J.C. Hsieh, relatives within the second degree have never served as directors, independent director or employees of the company or its related enterprises; she, relatives within the second degree (or in the name of others) do not hold shares in the company; Moreover, she has not served as a director, independent director or employee of a company that has a specific relationship with the company; nor has she provided the company or its related companies with business, legal, financial, accounting and other services in the past two years.	0

Legal Director Rep. J.S. Wang had resigned on Jan 2, 2024. And Director L.Y. Pan had been appointed and started on working on the same day.
Note 1: Professional qualifications and experience: describe the professional qualifications and experience of individual directors and supervisors. If they are members of the audit committee and have accounting or financial expertise,

their accounting or financial background and work experience should be stated and whether they have not. There are cases under Article 30 of the Company Law.

Note 2: Independent directors should state their independence, including but not limited to whether they, their spouse, or relatives within the second degree of kinship serve as directors, supervisors or employees of the company or its affiliated companies; The number and proportion of the company's shares held by relatives (or in the name of others); whether or not he is a company that has a specific relationship with the company (refer to the provisions of Article 3, Paragraph 1, Subparagraphs 5 to 8 of the Regulations on the Establishment of Independent Directors and Matters to be Complied by Public Companies). Directors, supervisors or employees; the amount of remuneration received for providing business, legal, financial, accounting and other services to the company or its affiliates in the last two years.

B. Board diversity and independence :

The Company set forth “Corporate Governance Best-Practice Principles” and “Procedures for Election of Directors”. The selection of directors of a company shall take into consideration the overall configuration of the board of directors. In order to achieve the ideal goal of corporate governance, the members of the board of directors should generally possess the knowledge, skills and accomplishments necessary to perform their duties. Their overall abilities required shall be as follows:

Ability to do operational judgments.
Ability to do accounting and financial analysis.
Ability to conduct management administration.
Ability to conduct crisis management.
Knowledge of the industry.
An international market perspective.
Ability to lead.
Ability to make policy decisions.

Directors shall not have a kinship relationship such as a spouse or second relative for a majority seats.

(1) Board diversity Goals

Article 20 of the "Corporate Governance Best-Practice Principles" and Article 3 of the "Procedures for Election of Directors" states that the composition of the board of directors should consider diversity and formulate an appropriate diversification policy based on its own operations, operating patterns and development needs, shall include but not limited to the following two major aspects:

Basic conditions and values: gender, age, nationality and culture.
Professional knowledge and skills: such as professional background (law, accounting, industry, finance, marketing or technology), professional skills and industrial experience.

The company set up the goals based on the board's diversification policy. It hopes that the background of future board members will include one seat of female directors, one-third seats for independent directors, one-third seats for directors with employee background and one for legal or scientific professionals so as to improve board diversity and corporate governance.

The term of current directors is from June 27, 2023 to June 26, 2026.

The Company has established a Board of Directors comprising nine members in accordance with its Articles of Incorporation. The current directors were elected at the shareholders' meeting held on June 27, 2023, in compliance with relevant laws and regulations. All nine directors are of local nationality, including three employee directors (one-third of the seats) and three independent directors (one-third of the seats). In line with the Company's policy objectives, the board members possess extensive experience and expertise in business management, industry knowledge, finance,

accounting, and environmental protection. This term also includes two female directors with professional backgrounds in corporate governance and risk management.

If the number of directors of either gender does not reach one-third of the board, the Company shall provide an explanation and outline measures to enhance gender diversity among directors:

Explanation of the Cause:

The Company's Articles of Incorporation stipulate a nine-member board. The current directors were elected at the shareholders' meeting held on June 27, 2023. While there are two female directors, which complies with the legal requirements at the time, this does not yet constitute one-third of the board. The primary reason is the industry's characteristics, which make it challenging to recruit suitable talent within a short time frame.

Adopted Measures:

Prior to the next board re-election, the Company will seek talent recommendations through various channels, such as industry associations and academic institutions. This effort aims to enhance corporate governance efficiency and implement the policy of board member diversity.

The implementation status of the Board of Directors' diversity objectives is summarized in the table below.

The implementation status of the Board of Directors' diversity objectives

Core Item / Director	Basic conditions									Business and Industry Experience			Professionality
	Nationality	Gender	Age (year)			Part-time	Seniority (Ind. Director)			Management	Leadership and policy decision	Industry knowledge	Finance and Accounting	Legal Risk	Ecotechnology
			50 to 60	61 to 70	Over 70		Less than 3	3 to 9	Over 9
Wen Hsu	ROC	M		V		V				V	V	V
Y.A. Chen	ROC	M			V	V				V	V	V
L.Y. Pan-UIS legal person	ROC	F		V								V	V
S.G. Wang	ROC	M			V							V			V
J.K. Sung	ROC	M	V			V				V	V	V
J.H. Ho	ROC	M		V						V	V	V	V
Y.J. Ding	ROC	M		V					V	V	V		V
Y.L. Su	ROC	M			V			V		V	V	V	V		V
J.C. Hsieh	ROC	F		V			V			V	V	V		V

(2) Board independence:

The Articles of Incorporation stipulates that the Company shall have seven to nine directors and the directors shall be elected by the shareholders and they can be re-elected. In accordance with the Securities and Exchange Act, the Company shall have independent directors within the number of directors in the preceding paragraph and the number of independent directors shall be at least three. The selection and appointment of directors (including independent directors) adopts the candidate nomination system.

There are nine directors in the company currently. Directors who have been elected by the shareholders' meeting on 2023.6.27. There are three independent directors, one third of the directors' seats. Each director has provided his written "declaration" or information to the company to confirm the independence of himself and his family relative to the company and is not involved in the conditions stipulated in Article 26-3 of the Securities and Exchange Act Items 3 and 4 (There is not a spousal relationship or a familial relationship within the second degree of kinship between Directors.), it is in compliance with relevant laws and regulations.

The information of all directors is published in the annual report. In addition, the company's website has publicly disclosed relevant information such as board members, training status and implementation of diversification. Website: Ablerex Electronics Co., Ltd.

2.1.3 General manager, deputy general manager and associate manager of each department and branch:

2026.3.31 / Unit: Share, %

Title	Nationality / Country of Origin	Name	Gender	Date Effective (MM-DD -YYYY)	Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Experience (Education)	Other Position	Managers who are Spouses or Within Two Degrees of Kinship
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
V. Chairman	ROC	Y.A. Chen	M	06-19-2010	2,485,763	5.52%	0	0	0	0	National Chiao Tung University/Master of Institute of Traffic & Transportation Supervisor of United Integrated Services Co., Ltd. Chairman of UIS Abler Electronics Co., Ltd. Chairman of Ablerex Electronics Co., Ltd.	Note 1	N/A	N/A	N/A
President	ROC	M.Z. Hwang	M	09-01-2022	15,000	0.03%	0	0	0	0	Mater of University of Glasgow	N/A	N/A	N/A	N/A
V.P. (Admin. office)	ROC	Z.C. Xiao	M	07-01-2011	102,085	0.23%	79	0.00%	0	0	Tamkang University/Bachelor of Electronic Engineering COO of Ablerex Electronics	Note 2	N/A	N/A	N/A
V.P.(FAE)	ROC	J.K. Sung	M	01-01-2015	192,921	0.43%	0	0	0	0	National Kaohsiung university of applied science/Master of electronic engineering (MEE) Sales Manager of PEC Technology Co., Ltd. Manager of FAE Department of PEC Technology Co., Ltd.	N/A	N/A	N/A	N/A
Executive V.P./RD	ROC	J.H. Lee	M	08-01-2019	0	0	0	0	0	0	National Kaohsiung university of applied science/Master of electronic engineering (MEE)	N/A	N/A	N/A	N/A
Corporate Governance Officer	ROC	Damon Chao	M	08-05-2019	0	0	0	0	0	0	Tamkung University Applied Chemistry RD Manager of Hold Key Electric Wire & Cable Co., Ltd. CEO of Wonderful Hi-Tech Co., Ltd.	N/A	N/A	N/A	N/A
Manager of Sales Dept. 1	ROC	Y.Z. Fu	M	07-01-2022	0	0	0	0	0	0	National Kaohsiung university of applied science/Master of electronic engineering (MEE) After Sales Manager of Ablerex Electronics Co., Ltd.	N/A	N/A	N/A	N/A
Financial Manager	ROC	Z.F. Lin	M	03-03-2008	35,000	0.07%	0	0	0	0	National Taiwan University/Bachelor of Economics Deputy Manager of Taipei Fubon Commercial Bank Co., Ltd.	Note 3	N/A	N/A	N/A
deputy Accounting Manager	ROC	M.H. Liao	F	07-01-2006	665,800	1.48%	31,000	0.07%	0	0	National Taipei University of Business/Bachelor of Accounting Deputy Manager of Accounting Department of PEC Technology Co., Ltd.	N/A	N/A	N/A	N/A

Note 1. Y.A. Chen Vice Chairman, Ablerex Electronics Co., Ltd., Chairman, Ablerex Electronics Co., Ltd., Chairman, Ablerex Electronics (Suzhou) Co., Ltd., Director, Ablerex Electronics (Samoa) Co., Ltd. Director, Ablerex Overseas Corp Ltd., Director, Z-COM, incl., Director of JG Environmental Technology Co., Ltd. Director, Eco Energy Corporation
Note 2. Z.C. Xiao Ablerex Electronics Co., Ltd. V.P.
Note 3. Z.F. Lin Supervisor of Ablerex Electronics (Suzhou) Co., Ltd. Supervisor of Wada Denki Co., Ltd.,

2.2 Remuneration of Directors, President and Vice Presidents
2.2.1 Remuneration of Directors and Ind. Directors

A. Remuneration of Directors and Independent Directors
Unit: NT$ thousand; %

Title	Name	Remuneration	Ratio of Total Remuneration (A+B+C+D) to Net Income (%)	Remuneration Received by Directors Who are Also Employees	Ratio of Total Compensation (A+B+C+D+E+F+G) to Net Income (%)	Compensation Paid to Directors from an Invested Company Other than the Company's Subsidiary
Base Compensation (A)	Severance Pay (B)	Bonus to Directors (C)	Allowances (D)	Base Compensation (E)	Severance Pay (F)	Bonus to Employee (G)
The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company
Chairman	Wen Hsu	0	0	0	3,069	3,069
Director	Y.A. Chen
Director	L.Y.Pan
Director	S.G. Wang
Director	J.K. Sung
Director	J.H. Ho
Ind. Director	Y.J. Ding	0	0	0	1,535	1,535
Ind. Director	Y.L. Su
Ind. Director	J.C. Hsieh

Note :
1. Please describe the policy of remuneration, criteria and packages, rules and procedures related to the remuneration and its relation to business performance and future risks for Independent Directors: Please refer P.22 of the annual report
2. Other than the disclosure in the table above, the remuneration received by the Directors of Ablerex in the latest year from providing services, such as being consultant that is not the employee of the company, to all the companies listed in the financial report: None

Remuneration Bracket

Range of Remuneration	Name of Directors
	Total of (A+B+C+D)		Total of (A+B+C+D+E+F+G)
	The company	Companies in the consolidated financial statements	The company	Companies in the consolidated financial statements
Less than 1,000,000	Wen Hsu, Y.A. Chen, UIS Co (Legal person director L.Y. Pan), S.G. Wang, J.K. Sung, J.H. Ho, Y.J. Ding, Y.L. Su and J.C. Hsieh.	Wen Hsu, Y.A. Chen, UIS Co (Legal person director L.Y. Pan), S.G. Wang, J.K. Sung, J.H. Ho, Y.J. Ding, Y.L. Su and J.C. Hsieh.	UIS Co (Legal person director L.Y. Pan), S.G. Wang, J.H. Ho, Y.J. Ding, Y.L. Su and J.C. Hsieh.	UIS Co (Legal person director L.Y. Pan), S.G. Wang, J.H. Ho, Y.J. Ding, Y.L. Su and J.C. Hsieh.
1,000,000 ~ 2,000,000	None	None	None	None
2,000,000 ~ 3,500,000	None	None	J.K. Sung	J.K. Sung
3,500,000 ~ 5,000,000	None	None	Wen Hsu, Y.A. Chen	Wen Hsu, Y.A. Chen
5,000,000 ~ 10,000,000	None	None	None	None
10,000,000 ~ 15,000,000	None	None	None	None
15,000,000 ~ 30,000,000	None	None	None	None
30,000,000 ~ 50,000,000	None	None	None	None
50,000,000 ~ 100,000,000	None	None	None	None
More than 100,000,000	None	None	None	None
Total	9	9	9	9

B. Remuneration of President and Vice Presidents
Unit: NT$ thousand, %

Title	Name	Salary(A)		Severance Pay (B)		Bonuses and Allowances (C)		Employee Compensation (D)				Ratio of total compensation (A+B+C+D) to net income (%)		Compensation paid to the President and Vice President from an Invested Company Other Than the Company's Subsidiary
		The company	Companies in the consolidated financial statements	The company	Companies in the consolidated financial statements	The company	Companies in the consolidated financial statements	The company		Companies in the consolidated financial statements		The company	Companies in the financial Statements
								Cash	Stock	Cash	Stock
President of Corporate governance and Sustainable Development Committee	Wen Hsu	11,960	11,960	525	525	7,341	7,341	1,170	0	1,170	0	11.61%	11.61%	0
CSO	Y.A. Chen
General Manager	M.Z. Hwang*
V.P	Z.C. Xiao
V.P	J.K. Sung
V.P	J.H. Lee
Chief Engineer	G.F. Hwang

Remuneration Bracket

Remuneration of President and V. P.	Name of President and V.P.
	The company	Companies in the consolidated financial statements
Less than 1,000,000	None	None
1,000,000 ~ 2,000,000	Z.C. Xiao, J.K. Sung	Z.C. Xiao, J.K. Sung
2,000,000 ~ 3,500,000	Wen Hsu, J.H. Lee, Y.S. Lin	Wen Hsu, J.H. Lee, Y.S. Lin
3,500,000 ~ 5,000,000	Y.A. Chen	Y.A. Chen
5,000,000 ~ 10,000,000	M.Z. Hwang	M.Z. Hwang
10,000,000 ~ 15,000,000	None	None
15,000,000 ~ 30,000,000	None	None

30,000,000 ~ 50,000,000	None	None
50,000,000 ~ 100,000,000	None	None
More than100,000,000	None	None
Total	7	7

*The remuneration disclosed on the above chart is not the same as the income in Income Tax Act. The purpose of the chart is for information disclosure instead of tax basis.

C. Remuneration of Executive Officers

Unit: NT$ Thousand

Title	Name	Employee Bonus - in Stock (Fair Market Value)	Employee Bonus - in Cash	Total	Ratio of Total Amount to Net Income (%)
President of Corporate governance and Sustainable Development Committee	Wen Hsu	0	1,586	1,586	0.88%
C.S.O	Y.A. Chen
General Manager*	M.Z. Hwang
V.P of Administration Office	Z.C. Xiao
V.P of FAE Dept.	J.K. Sung
Executive V.P. of RD	J.H. Lee
Corporate Governance Officer	Damon Chao
Manager of Sales Dept. 1	Y.Z. Fu
Chief Engineer of RD	Y.S. Lin
Assistant Manager of Accounting Dept.	M.H. Liao
Manager of Financial Dept.	Z.F. Lin

2.2.2 Compare and state the ratio of total remuneration paid to the Company's Directors, Supervisors, President and Vice Presidents by the Company and the companies in the consolidated financial statements to net income in the last 2 years; also, describe the policy, standard and combination of remuneration paid; moreover, the procedure of defining remuneration and its relation to business performance:

A. Analyze the ratio of the total remuneration paid to the company's Directors, Supervisors, President and Vice Presidents in the last 2 years to net income:

Unit: NT$ Thousand, %

| Year
Title | 2024 | | 2025 | |
| --- | --- | --- | --- | --- |
| | The company | Companies in the financial statements | The company | Companies in the financial statements |
| Remuneration to Directors | 2,873 | 2,873 | 5,072 | 5,072 |
| Ratio of total remuneration paid to Directors to net income (%) | 2.97% | 2.97% | 2.80% | 2.80% |
| Remuneration to President and V.P | 18,414 | 18,414 | 20,996 | 20,996 |
| Ratio of total remuneration paid to President and V.P to net income (%) | 19.05% | 19.05% | 11.61% | 11.61% |

B. The policy of remuneration, criteria and packages, rules and procedures related to the remuneration and its relation to business performance and future risks.

| Title
Description | Remuneration to Directors (includes Independent Directors) and Supervisor | Remuneration to President and V.P. |
| --- | --- | --- |
| Policy of Remuneration | The directors and supervisors of the Company currently do not have fixed remuneration and only if the company has a surplus at the end of its operating year, the company can provide within 2% of the profit for the current year according to the provisions of Article 25 of the Articles of Association. Remuneration for the supervisors of the current year. The procedures for the determination of remuneration are based on the Company's “Board Performance Evaluation Method” as a review. Except for the overall operating performance, industrial operating risks and development trends of the company, the individual and overall performance of the board members and the company's operations are also considered. Situation and given a reasonable remuneration, relevant performance appraisal and remuneration rationality are subject to review by the Compensation Committee and the Board of Directors and based on changes in the relevant laws, a timely review of the remuneration system to balance the company's sustainable management and risk control. | The remuneration of Managers is paid based on Staff Remuneration Management Principles. Bonus is paid according to Bonus and Profit-Sharing Principles of Ablerex in the years of surplus. |
| Criteria and Packages | Based on the responsibility of undertakings and guarantees of individual Directors or Supervisors (The Audit Committee has been established since 2020.6.19 and its members are composed of all independent directors) | Salary, duty allowances, meal allowances, bonus from evaluation and subsidies. |
| Rules and procedures related to the remuneration | 1. The remuneration to Directors from Ablerex's earning is stipulated by the Articles of Incorporation. The amount is proposed by the Remuneration Committee, resolved by the Board of Directors and Shareholders' Meeting before allocation.
2. The allocation of remuneration to Directors and Supervisors is advised by the Remuneration Committee and allocated after the consent of Board of Directors. | 1. The rule of remuneration is stipulated in Staff Remuneration Management Principles, reviewed by the Remuneration Committee and approved by the Board of Directors.
2. The bonus from annual performance and compensation is proposed according to the annual performance evaluation and related internal regulations, reviewed by the Remuneration Committee and approved by the Board of Directors. |
| Relation to business performance and future risks | The remuneration is determined based on each individual participation and contribution, as well as the level of remuneration paid by peers. And the criteria of remuneration are regularly reviewed by the Remuneration Committee. | The remuneration is determined based on the contracted salary and the performance and profit of each business unit. The remuneration is regularly reviewed by the Remuneration Committee. |

2.3 Implementation of Corporate Governance

2.3.1 Implementation of Board of Directors

6 Board Meetings in 2025 and the attendance of Directors for the 6 Board Meetings: Overall attendance rate for the year: 100.0%

Title	Name	Meetings (A)	Attendance in Person (B)	Attendance Rate (%) (B/A)
Chairman	Wen Hsu	6	6	100%
Director	Y.A. Chen	6	6	100%
Director	UIS Co. Rep. L.Y. Pan	6	6	100%
Director	S.G. Wang	6	6	100%
Director	J.K. Sung	6	6	100%
Director	J.H. Ho	6	6	100%
Independent Director	Y.J. Ding	6	6	100%
Independent Director	Y.L. Su	6	6	100%
Independent Director	J.C. Hsieh	6	6	100%

Note 1: Independent Board Directors' Attendance Status in 2025

◎:Attended person;☆:letter of Authorization;*:absent
2025	1^{st}	2^{nd}	3^{rd}	4^{th}	5^{th}	6^{th}
Y.J. Ding	◎	◎	◎	◎	◎	◎
Y.L. Su	◎	◎	◎	◎	◎	◎
J.C. Hsieh	◎	◎	◎	◎	◎	◎

*The overall attendance rate of independent directors for the year: 100.0%

Note 2: Where the director from a legal person, he/she shall disclose the name of the legal person shareholder and the name of the representative.

Note 3:
(1) There are directors who leave the job before the end of the year, it shall indicate the date of departure in remarks and the actual attendance rate (%) is calculated based on the number of times of board attendance and actual attendance during his term of office.
(2) The directors are to be re-elected before the end of the year, the new and former directors shall be identified and the directors shall be indicated in remarks as the old, new or re-election date. Actual attendance percentage is calculated for the number of meetings held by the Board during its term of office and its actual attendance.

Other matters for records:

If there are any of the following situations in the operation of the board of directors, the date, period, content of the proposal, the opinions of all independent directors and the company's handling of the opinions of independent directors should be stated.

(1) referred to in Article 14-3 of the Securities and Exchange Act : N/A. The company has established the Audit Committee and shall apply the provisions of Article 14-5 of the Securities and Exchange Act. Please refer to the committee's meeting resolutions.

(2) resolutions of the directors' meetings objected to by independent directors or subject to qualified opinion and recorded or declared in writing, the dates of the meetings, sessions, contents of motion, all independent directors' opinions and, the company's response should be specified :

Date	Term	motion	Independent Director's opinion	Follow up
May 5, 2025	the 3rdBoard meetingin 2025	Matters for Discussion – Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for Mar. & April, 2025.	Director Y.A. Chen and Independent Director Y.J. Ding: In addition to exercising due diligence in monitoring overdue accounts receivable, attention should also be given to inventory turnover, with inventory management incorporated as a key focus of operational management.	The Company will follow the suggestion.

If there are directors' avoidance of motions in conflict of interest, the directors' names, contents of motion, causes for avoidance and voting should be specified:

(1) On May 5, 2025, the Board of Directors reviewed a proposal to donate NTD 1,000,000 to the Yunlin Sanshowyuan Cultural Foundation to support its cultural and arts promotion initiatives. During the review and voting process, Independent Directors Y.L. Su and Y.J. Ding, as well as Directors Hsu Wen and Y.A. Chen, recused themselves due to conflicts of interest. The meeting was chaired by Director L.Y. Pan. Upon consultation with the remaining attending directors, the proposal was approved as presented without objection.
(2) On Dec 22, 2025, the Board of Directors reviewed the year-end bonus for the year 2024. During the voting for the review, due to Chairman Wen Hsu, Director Y.A. Chen/CSO and Director J.K. Sung/V.P. are the managers of the company, they resolved to issue their own interests in accordance with the regulation and avoided discussion and did not participate in the discussion. Vote and appoint Y.J. Ding as the sole director to vote on the matter. The chairman consulted the remaining attending the five directors and agreed to pass the case.

Information on the evaluation cycle and period, evaluation scope, method and evaluation content of the board's self (or peer) evaluation should be disclosed and the board's evaluation of the board should be completed.

Cycle time (Note1)	Peiod (Note 2)	Scope (Note 3)	Method (Note 4)	Content (Note 5)
Once a year (by end of the fiscal year)	Evaluation of the performance of the Board of Directors from January 1-December 31, 2025	includes the performance evaluation of the board of directors, individual director members and functional committees	The annual internal evaluation system adopts the questionnaire self-evaluation method. The evaluation is carried out by the deliberating unit, including the internal self-evaluation of the board of directors,	Board performance evaluation, individual director member performance evaluation and functional committee performance evaluation

			the self-evaluation of directors, the remuneration committee and the internal self-evaluation of the Audit Committee.
Note 1: Fill in the execution cycle of the board evaluation, for example: once a year
Note 2: Fill in the period covered by the evaluation of the board of directors.
Note 3: The scope of evaluation includes performance evaluation of the board of directors, individual director members and functional committees.
Note 4: The evaluation methods include internal self-evaluation by the board of directors, self-evaluation by board members, peer evaluation, appointment of external professional organizations, experts, or other appropriate methods for performance evaluation.
Note 5: The evaluation content includes at least the following items according to the evaluation scope:
(1) Evaluation of the performance of the board of directors: At least including the degree of participation in the company's operations, the quality of board decisions, the composition and structure of the board of directors, the selection and continuous training of directors, internal control, etc.
(2) Performance evaluation of individual director members: At least including the grasp of company goals and tasks, the professional and continuous training of directors, internal control, etc.
(3) Functional Committee Performance Evaluation: Participation in company operations, functional committee responsibilities, quality of functional committee decisions, functional committee composition and selection of members, internal control, etc.
Note 6: Implementation for Evaluation of the performance of the Board of Directors:
Self-Evaluation of the performance of the Board of Directors: As of 2024, the board of directors actively promoted corporate governance and effectively performed the functions of the board of directors and evaluated that all indicators reached a good level, which was sufficient to show that the company has achieved remarkable results in the operation of the board of directors, the improvement of participation in operations, the quality of decision-making and the enhancement of efficiency. The directors gave positive comments on the operational efficiency and effectiveness of the board of directors, remuneration committee and audit committee.

Measures taken to strengthen the functionality of the board: (Ex. The Board of Directors has established an Audit Committee and a Remuneration Committee to assist the board in carrying out its various duties.)

(1) Goal of strengthening the functionality of the board: Ablerex established "Rules of Procedure for Board of Directors Meetings and Management Procedures for the Operation of Board Directors Meetings", which regulates the managerial systems of the board of Ablerex and strengthens the board's function of supervision and management, to let the procedures of board's meeting to follow.

(2) Implementation evaluation: The convention and process of board of directors' meeting of Ablerex is fully followed the regulation of "Rules of Procedure for Board of Directors Meetings and Management Procedures for the Operation of Board Directors Meetings". Remuneration Committee exercises its duty of review the remuneration of directors, supervisors and managers and provides evaluations and suggestions about the relevant policies and internal regulations for the reference of board of directors.

(3) Referring to "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" and related regulations, the amendment of "Corporate Governance Best Practice Principles" has been approved by board of directors and by shareholders' meeting. The amendment states that it adopts he candidate nomination system for election of directors (including independent directors) and supervisors. The composition of the board of directors shall be determined by taking diversity into consideration and should include, but not limited to, gender, age, culture and professional.

(4) The Company refer to the "Corporate Governance Best-Practice Principles" and ahead of deadline of regulation, the Board of Directors had passed the proposal to appoint Corporate Governance Officer on Aug 5, 2019. The officer shall be in charge of the matters for Corporate Governance and strengthen Board of Directors function.

(5) After the directors were re-elected at the shareholders meeting on 2020.06.19, the company established the Audit Committee and operated in accordance with the "Audit Committee Charter" and "Management of Operation of Audit Committee" to strengthen the functional committees of the board of directors and improve corporate governance. Set up 2nd Audit Committee after re-election of Directors on June 27, 2023.

2.3.2 Audit Committee Operations or Supervisors' Participation in Board Operations:

2.3.2.1 Audit Committee implementation:

Information on the operation of the audit committee

Audit committee attendance:

The company's audit committee consists of 3 people, composed of all independent directors. New elected Independent Directors are Mr. Y.J. Ding, Mr. Y.L. Su and Ms. J.C. Hsieh.
The term for this (second) term of committee members: from June 27, 2023 to June 26, 2026. The Audit Committee has held 6 meetings in the last (2025) years. The membership qualifications and attendance status are as follows:

Title	Name	Number of times to attend (A)	Actual attendance (B)	attendance (%)(B/A)
convener /Ind. Director	Y.J. Ding	6	6	100%
member/ Ind. Director	Y.L. Su	6	6	100%
member/ Ind. Director	J.C. Hsieh	6	6	100%
Summary		18	18	100%

Other matters for records:

A. In case the operation of the audit committee is under any of the following circumstances, the date and term of the board of directors, the content of the proposal, the resolution of the audit committee and the company's follow up of the audit committee's opinions should be stated:

(1) Matters listed in Article 14-5 of the Securities and Exchange Act.
(2) Except for the previous matters, other matters that have not been approved by the Audit Committee and approved by more than two-thirds of all directors.

B. The implementation of independent directors' avoidance of interested proposals shall state the names of independent directors, the content of the proposals, the reasons for the avoidance of interests and the voting conditions: none

C. The communication between independent directors and internal audit supervisors and accountants (should include matters, methods and resolutions of communication on the company's financial and business conditions)

2.3.2.2 Operation of the Audit Committee:

Board of Directors	Audit Committee	Proposal and processing	Matters listed in 14-5 of the Securities and Exchange Act	Resolutions that have not been approved by the Audit Committee but approved by more than 2/3 of all directors
the 11^{th} meeting of the 9^{th} term (2025.1.15)	the 10^{th} meeting of the 2^{nd} term (2025.1.15)	1. Approval of new capital loans to related parties Ablerex Latam Corporation for December 2024.	V	None
		Audit Committee resolution (2025.1.15): Proposal 1 was approved by all the directors present at the Audit Committee.
		Follows up for Audit Committee resolutions: Proposal 1 was approved by all the directors present at the board of directors.
the 12^{th} meeting of the 9^{th} term (2025.3.11)	the 11^{th} meeting of the 2^{nd} term (2025.3.11)	1. Acknowledge the Consolidated report and Business report for 2024	V	None
		2. Approved the assessment of the independence of the auditors.	V	None
		3. Approved the declaration of internal control system of Year 2024.	V	None
		4. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for February 2025.	V	None
		5. Approved the case of Endorsement guarantee.	V	None
		Audit Committee resolution (2025.3.11): Proposals 1, 2, 3, 4 and 5 were approved by all the directors present at the Audit Committee.
		Follows up for Audit Committee resolutions: Proposals 1, 2, 3, 4 and 5 were approved by all the directors present at the board of directors.
the 13^{th} meeting of the 9^{th} term (2025.5.5)	the 12^{th} meeting of the 2^{nd} term (2025.5.5)	1. Q1 Consolidated report for 2025	V	None
		2. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for Mar. & April, 2025.	V	None
		Resolution of the Audit Committee (2025.5.5): Proposals 1 and 2 were approved by all the directors present at the Audit Committee.
		Follows up for Audit Committee resolutions: Proposals 1 and 2 were approved by all the directors present at the board of directors.
the 14^{th} meeting of the 9^{th} term (2025.8.4)	the 13^{th} meeting of the 2^{nd} term (2025.8.4)	1. Acknowledged the Q2 consolidated financial statements of Year 2025.	V	None
		2. Approved the amendment to the Internal control system "remuneration cycle".	V	None
		3. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for May to July, 2025.	V	None
		4. Approved the case of Endorsement guarantee.	V	None

Board of Directors	Audit Committee	Proposal and processing	Matters listed in 14-5 of the Securities and Exchange Act	Resolutions that have not been approved by the Audit Committee but approved by more than 2/3 of all directors
		Audit Committee resolution (2025.8.4):
Proposals 1, 2, 3 and 4 were approved by all the directors present at the Audit Committee.
		Follows up for Audit Committee resolutions:
Proposals 1, 2, 3 and 4 were approved by all the directors present at the board of directors.
the 15^{th} meeting of the 9^{th} term (2025.11.3)	the 14^{th} meeting of the 2^{nd} term (2025.11.3)	1. Acknowledged the Q3 consolidated financial statements of Year 2025.	V	None
		2. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for Aug to Oct., 2025.
		3. Discussed and approved the Annual audit plan for year 2026.	V	None
		Resolution of the Audit Committee (2025.11.3):
Proposals 1, 2 and 3 were approved by all the directors present at the Audit Committee.
		Follows up for Audit Committee resolutions:
Proposals 1, 2 and 3 were passed by all the directors present at the board of directors.
the 16^{th} meeting of the 9^{th} term (2025.12.22)	the 15^{th} meeting of the 2^{st} term (2025.12.22)	1. Approved the amendment to the Internal control system "remuneration cycle".	V	None
		2. Approved of new capital loans to related parties, Ablerex Latam Corporation and Ablerex Electronics Italy Srl respectively for Nov, 2025.
		Resolution of the Audit Committee (2025.12.22):
Proposals 1 and 2 has been approved by all the directors present at the Audit Committee.
		Follows up for Audit Committee resolutions:
Proposals 1 and 2 has been approved by all the directors present at the board of directors.

(1). After the audit report and follow-up report are reviewed, the audit report of the company will be delivered to independent directors for inspection by the end of the next month after the audit project is completed and the audit supervisor will attend each board of directors to report the audit status of the audit project. The company shall organize a seminar between independent directors and internal audit supervisors every year to fully communicate and make records on issues such as the implementation of the company's audit plan and the implementation of the internal control system.

(2). In terms of communication with the accountant, the accountant shall communicate with the independent directors on the direction of the audit plan before the audit. If the independent director has any questions about the company's financial or business, he may directly communicate with the company's accountant; the accountant shall communicate with the independent director to explain the inspection situation and results.

(3). Annual work key points:
The Audit Committee of the company is composed of 3 independent directors. The Audit

Committee aims to assist the board of directors in supervising the company's quality and integrity in the implementation of related accounting, auditing, financial reporting processes and financial control.

The Audit Committee held 6 meetings in 2025 and the main items considered were :

a. Establish or amend the internal control system in accordance with Article 14-1 of the Securities and Exchange Act.
b. Evaluation of the effectiveness of the internal control system.
c. In accordance with the provisions of Article 36-1 of the Securities and Exchange Act, establish or amend the procedures for the acquisition and disposal of assets, derivative commodity transactions, Loaning Funds to Others, Guarantees Endorsements.
d. Matters with the director's own interests.
e. Major asset or derivative commodity transactions.
f. Major Loaning Funds, endorsements or guarantees.
g. Raising, issuing or private placement of equity securities.
h. Appointment, dismissal or remuneration of certified accountants.
i. Appointment and dismissal of financial, accounting or internal audit supervisors.
j. Annual financial report signed or stamped by the chairman, manager and accounting supervisor and the Q2 financial report subject to verification by accountants.
k. Other important matters specified by the company or the competent authority.

(4) Review financial reports

The board of directors has prepared the company's 2025 interim and quarterly financial statements, among which the financial statements have been verified or reviewed by PwC and a review report has been issued. The above-mentioned financial statements have been reviewed by the Audit Committee and found no discrepancy.

Assess the effectiveness of the internal control system

The Audit Committee evaluated the effectiveness of the company's internal control system strategies and procedures (including financial, operational, risk management, Cyber security, outsourcing, legal compliance and other control measures) and reviewed the regular Reports including risk management and compliance from company's audit department, certified accountants and management. Refer to the internal control system published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013 - Internal Control-Integrated Framework. The Audit Committee recognized that the company's risk management and internal control systems are effective. The company has adopted necessary control steps to monitor and correct violations.

In order to ensure the independence of the certified public accountant firm, the Audit Committee has formulated an independent evaluation form with reference to Article 47 of the Accountants Act and the Bulletin of the Professional Ethics of Accountants No. 10 "Integrity, impartiality, objectivity and independence", to assess the independence, Professional and competency assessment of accountants, assess whether the company is a mutual related person, mutual business or financial interests and other projects.

The audit committee evaluates the independence and competency of CPA at least once a year. It has referred to the Audit Quality Indicators (AQIs) provided by the accounting firm to evaluate the accounting firm's professionalism, quality control, independence, supervision and innovation capabilities, etc. Five major aspects and their indicators, including the audit team's audit experience, training hours, staff turnover rate, professional support, accountant's load, audit investment hours, audit quality composite, quality control support capabilities, non-audit services to independent The influence of nature, the number of years of continuous provision of audit

services, lack of external inspections, improvement letters issued by the competent authorities, and innovation capabilities and plans to improve audit quality. In addition, the accountants and their firms were invited to review indicators such as the size and reputation of the accounting firm, the nature and extent of non-audit services provided, public funding of audit visas, peer reviews, and the absence of any legal litigation cases and interactions with management and internal audit supervisors. Provide relevant information and a statement of detached independence and verification work. The information content has been verified by the company's headquarters and evaluated by the company's audit committee.

2.3.3 Corporate Governance Implementation Status and Deviations and reason from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reason
	Yes	No	Abstract Illustration
1. Does the company establish and disclose the Corporate Governance Best-Practice Principles based on “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies”?	☑		Ablerex has established the “Corporate Governance Best-Practice Principles” and has been approved by the Board of Directors on 2013.3.22 and revised a few times once upon regulation revised to build an effective corporate governance structure, to protect the rights of shareholders, to enhance the power of the Board of Directors, to empower the Supervisors or following Audit Committee, to respect the welfare of the stakeholders and to improve transparency of information disclosure. It is disclosed annually on annual report and website: https://www.ablerex.com.tw/esg/5.8.PDF	In compliance with “Corporate Governance Best Practice Principles” Article 1.
2. Shareholding structure & shareholders’ rights
(1). Does the company establish an internal operating procedure to deal with shareholders’ suggestions, doubts, disputes and litigations and implement based on the procedure?	☑		(1). The company has established a spokesperson system to deal with shareholders’ suggestions, doubts or disputes. The contact information website is : https://www.ablerex.com.tw/investor5.php. Besides that, legal consultant was contracted to provide legal advice.	In compliance with “Corporate Governance Best Practice Principles” Article 13.
(2). Does the company possess the list of its major shareholders as well as the ultimate owners of those shares?	☑		(2). The company and the stock affairs agency regularly keep abreast of the list of major shareholders and controllers of the company and report monthly changes in shareholdings of directors, managers and major shareholders holding 5% of the shares.	In compliance with “Corporate Governance Best Practice Principles” Article 19.
(3). Does the company establish and execute the risk management and firewall system within its conglomerate structure?	☑		(3). The management authorization and obligations are clearly divided between Ablerex and the affiliates. The financial and business relationships within the conglomerate structure follow the regulations and “Business Management Procedures with Specified Stakeholders and Affiliates”. Ablerex also established “Supervision and Management of Subsidiaries” as the management and firewall system.	In compliance with “Corporate Governance Best Practice Principles” Article 14 to Article 17.
(4). Does the company establish internal rules against insiders trading with undisclosed information?	☑		(4). The Company has formulated the “Procedures for Handling Material Inside Information” and “Procedures for the Prevention of Insider Trading” which are disclosed on the corporate governance area of the company’s website to establish a good internal major information	In compliance with “Corporate Governance Best Practice Principles” Article 10 Paragraph 3.

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reason
	Yes	No	Abstract Illustration
			processing and disclosure mechanism of the Company. Insiders shall not be allowed to buy or sell the company's stocks or other securities of equity nature within 18 hours after the news is unpublished or made public when it is informed that the company has materially affected its stock price.
Stock trading control measures for company insiders from the day they learn of the company's financial report or related performance content, including (but not limited to) directors not being allowed 30 days before the announcement of the annual financial report and 15 days before the announcement of the quarterly financial report Trading of its stocks during the closed period. And publicize to make insiders follow and refer to the publicity manual of the competent authority for insider trading and insider equity related laws and precautions, etc. and place it on the company website for reference. Abierex Electronics Co., Ltd.).
3. Composition and Responsibilities of the Board of Directors
(1). Does the board of directors formulate diversity policies, specific management objectives and implementation?	☑		(1). The "Corporate Governance Best-Practice Principles" of the company clearly stipulates that the board of directors should consider the diversity of membership and should generally possess the knowledge, skills and literacy necessary to perform their duties. And to formulate appropriate diversification policy goals based on its own operation, operation type and development needs. The company currently has setup nine directors, including three employee directors (1/3 of directors' seats) and three independent directors (1/3 of directors' seats). The members have well experience in management, industry knowledge, financial accounting and environmental protection. The company has realized the diversity goals for two female directors and board of directors with a major in risk management.
The board of directors formulates diversified policies on membership and exposes them on the company's website 2.2.8.PDF (ablerex.com.tw) and public information observatories.	In compliance with “Corporate Governance Best Practice Principles” Article 20.
(2). Does the company voluntarily establish other functional committees besides the	☑		(2). Ablerex sets up functional committees in accordance with regulations. With a professional and objective status, the Remuneration Committee	In compliance with “Corporate Governance

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reason
	Yes	No	Abstract Illustration
Remuneration Committee and the Audit Committee?			evaluates the remuneration policies and systems of the company's directors, supervisors and managers and makes recommendations to the board of directors for its decision-making reference. An audit committee was established on 2023.6.27. The SEC Act, the Company Act and other laws stipulated that the supervisor should exercise the powers, except for the powers of Article 14-4, Paragraph 4 of the SEC Act. Will disclose the composition, responsibilities and operation of the functional committee in the annual report and company website. (https://www.ablerex.com.tw/esg_2_3.php)	Best Practice Principles” Article 27, 28 and 28-1.
(3). Does the company establish a standard to measure the performance of the Board and implement it annually and report the results of the performance evaluation to the board of directors and use it as a reference for individual directors' salary, remuneration and nominate renewal?	☑		(3). The company formulated the "Self-Evaluation of the Board of Directors" in 2017 to implement corporate governance, give full play to the functions of the board of directors, functional committees and improve the efficiency of board operations. The company shall carry out performance evaluation every year in accordance with the procedures and evaluation indicators of the "Self-Evaluation of the Board of Directors", report the results of the performance evaluation to the board of directors and take it for reference of individual directors' remuneration and nominate renewal.
The company completed the Self-evaluation of the board of directors and Functional Committee in December 2025 and reported the evaluation results and target for continuous strengthening to the board of directors held on Mar 11, 2026. The evaluation was conducted using an internal questionnaire. Based on the results of the performance evaluation of the board of directors in 2025, the overall operation of the board of directors is excellent and can be used as a reference for individual directors' compensation, remuneration and nominate renewal. The above disclosure is on the company's website and public information observation station. (Path 2.2.9.PDF (ablerex.com.tw))	In accordance with “Corporate Governance Best Practice Principles” Article 37.
(4). Does the company regularly evaluate the independence of CPAs?	☑		(4). The Company conducts an annual assessment of the independence and suitability of its certifying accountants. Starting from 2023 (112th fiscal year), the evaluation has incorporated the Audit Quality Indicators (AQIs) provided by the accounting firm. The assessment covers five key dimensions and their respective indicators: professionalism, quality	In accordance with “Corporate Governance Best Practice Principles” Article 29.

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Illustration
			control, independence, supervision, and innovation capability. These include factors such as the audit team's experience, training hours, staff turnover rate, professional support, workload of the accountants, audit hours invested, audit quality composition, quality control support capacity, the impact of non-audit services on independence, years of continuous audit services provided, deficiencies identified in external inspections, compliance with regulatory directives for improvements, and planning for innovations to enhance audit quality.
In addition, we asked accountants and their firms regarding the scale and reputation of accounting firms, the nature and extent of non-audit services provided, public fees for audit visas, peer reviews and whether there were any legal proceedings and interactions with management and internal audit supervisors. Provide relevant information and The Representation letter of the Auditors’ Independence. After verification of the data content by the HQs and evaluation by Audit Committee, the evaluation results of the last three years were reported to the Board of Directors on 2023/3/21, 2024/3/13 and 2025/3/11 respectively. The company's assessment results are also disclosed on the company's website and annual report. (Note 2)
4. Does the company set up a competent and appropriate number of Corporate Governance persons and designate a Corporate Governance Officer responsible for corporate governance-related matters (including but not limited to providing directors with the information needed to perform business, assisting directors, supervisors to follow Decrees, handling matters related to board and shareholder meetings in accordance with law, handling company registration and change registration, making minutes of board and shareholder meetings, etc.)	☑		(1). The company passed the resolution of the board of directors on August 5, 2019 and appointed Mr. Damon Chao to be the Corporate Governance Officer to strengthen the functions of Corporate Governance and the board of directors. The person has been qualified with he has been in charge of legal affairs and corporate governance for public issue companies for more than five years.
(2). The main function of the Corporate Governance Officer is to handle board and shareholder meeting related matters in accordance with the law, assist in preparing records of the board and shareholder meeting, assist directors in their appointments and continuing training, provide directors with the information needed to perform their business, assist directors to follow laws, etc.
(3). The detail information for implementation and training record as Ablerex Electronics Co., Ltd. (Note.3)	In compliance with “Corporate Governance Best Practice Principles” Article 3-1.

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reason
	Yes	No	Abstract Illustration
5. Does the company establish a communication channel and build a designated section on its website for stakeholders includes but not limited shareholders, staffs, customers and suppliers, as well as to handle all the issues they care for in terms of corporate social responsibilities?	☑		The company values the rights and interests of stakeholders and sets up an area for stakeholders on the company website to disclose the identification and attention of stakeholders to major issues of environmental, social and corporate governance and the contact channels and communication responses of stakeholders 3.7.3.pdf (ablerex.com.tw)
In order to improve the accuracy and timeliness of major information disclosure, spokespersons and deputy spokespersons are set up to speak and communicate on behalf of the company. (3.7.2.pdf (ablerex.com.tw))	In compliance with “Corporate Governance Best Practice Principles” Article 51 - 52.
6. Does the company appoint a professional shareholder service agency to deal with shareholder affairs?	☑		The Company designates Fubon Securities Corporation Limited to deal with shareholder affairs.	In compliance with “Corporate Governance Best Practice Principles” Article 7 Paragraph 1.
7. Information Disclosure
(1). Does the company have a corporate website to disclose both financial standings and the status of corporate governance?	☑		(1). The company's website is Ablerex Electronics Co., Ltd.. It regularly and irregularly exposes the company's financial, corporate social responsibility and business information on the website and introduces the company on the website. Operational status, including products, technical data and certifications and company profile. You can also query the company's related financial and business-related information through the "public information observation station "Market Observation Post System (MOPS).	In compliance with “Corporate Governance Best Practice Principles” Article 57.
(2). Does the company have other information disclosure channels (e.g. building an English website, appointing designated people to handle information collection and disclosure, creating a spokesman system, webcasting investor conferences)?	☑		(2). The company has a special person responsible for the disclosure of major information and implements the spokesperson system in accordance with regulations. Stakeholders who invest in the public can query the company's relevant financial and business information through the Chinese and English versions of the company's Chinese and English websites or public information observation stations. Ablerex Electronics Co., Ltd.	In compliance with “Corporate Governance Best Practice Principles” Article 55 to Article 58.
(3). Does the company announce and report the annual financial report within two months after the end of the fiscal year and announce			(3). Although the company did not announce and report the annual financial report within two months after the end of the fiscal year, they all announced and reported the first, second and third quarter financial	In compliance with Article 55, Paragraph 1 of the "Code of Practice

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies” and Reason
	Yes	No	Abstract Illustration
and report the first, second and third quarter financial reports and operating conditions of each month as early as possible before the deadline?			reports and the operating conditions of each month within the prescribed period, which is in compliance with the regulations. In addition to the provisions of the decree, will try our best to reduce the operation time and achieve the goals of advance announcement and declaration.	for Corporate Governance of TWSE/TPEX".
8. Is there any other important information to facilitate a better understanding of the company’s corporate governance practices (e.g., including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors’ and supervisors’ training records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies and purchasing insurance for directors and supervisors)?	☑		(1). Status of employee rights: Ablerex has been always honest and trust to employees and their legal rights are all protected under the Labor Standards Act.
(2). Employee wellness: Ablerex has established the Employees’ Welfare Committee, implemented pension fund and group insurance for employees and held regular health examination. Ablerex also encourages employees to attain all kinds of training and conferences.
(3). Investor Relationships: Ablerex disclosed information according to the regulations to protect the rights of investors as the responsibilities to shareholders.
(4). Supplier Relationships: Ablerex has always communicated well with the suppliers.
(5). Rights of stakeholders: Ablerex set communication channels for stakeholders to make suggestions as protecting the legal right of the stakeholders.
(6). Directors’ training records: The Directors all possess of professional background knowledge and also attaining training sessions. Note 4 is the Directors’ training records recently.
(7). Managers’ and Auditors’ training records: Note 5.
(8). The implementation of risk management policies and risk evaluation measures: The company formulates internal control systems and internal regulations in accordance with relevant laws and regulations and conducts various risk management implementation and evaluation reviews. In response to advancing with the times, conducting risk assessment and analysis based on stakeholders’ concerns about major environmental, social and corporate governance issues and operational risks of the company’s industrial characteristics and establishing risk management	In compliance with “Corporate Governance Best Practice Principles” Article 51 to 54 and Article 59.

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Illustration
			policies or corresponding measures. The “Management policies and procedures” has been approved by Board of Director on Nov 9, 2020 and it has been disclosed on the company website. (Note 6)
(9). The implementation of customer relations policies: Ablerex maintains good and stable relationships with the customers to create the profits.
(10). Purchasing insurance for directors and supervisors: The proposal of purchasing insurance for directors and supervisors has been discussed and been unanimously approved on the Board meeting of 2025.3.11. The insurance for directors and supervisors was purchased as Note 7.
(11) The company has established a Cyber security risk management framework, Cyber security policies and specific management plans to continuously conduct and evaluate it and report the annual Cyber security risk management situation and verified by third-party with ISO-27001 standard at the 2025.11.3 board of directors and disclose it on the company’s website and annual report. (Note 8)
9. Please indicate the improvement of the results of the corporate governance evaluation issued by the Corporate Governance Center in the last year of the Taiwan Stock Exchange Co., Ltd. and provide priority measures and measures for those who have not yet improved.
(1). The company’s eleventh (2024) results ranked in the top 6-20% of the "Corporate Governance Assessment" and the 2-10% of the industry rankings with a market value less than NTD 5 billion. The results are the same as last year. We will continue to work hard to improve corporate governance performance and Aim for good grades.
(2). Under the supervision of the board of directors, the company established the "Corporate Governance Sustainability Committee" on May 2, 2018 to undertake subsequent revisions of "corporate governance", "sustainable development code of practice" and "integrity management" and various related duties in charge of business promotion. In addition to maintaining legal compliance and effectively promoting the operation and management of the corporate governance structure, protecting the rights and interests of shareholders, strengthening the functions of the board of directors, giving full play to the functions of supervisors, respecting the rights and interests of stakeholders and improving information transparency.
(3). In order to strengthen corporate governance and improve the company’s risk management and control, the company has formulated "Risk Management Policies and Procedures" and approved by the board of directors on 2020.11.9 and disclosed the relevant risk management scope, organizational structure and annual operation status on the company’s website.
(4). The company strengthened the supervisory function of the board of directors, established an intellectual property management system based on the management cycle of PDCA and reported to the board of directors on the operation of the intellectual property management plan in 2025.11.3 and disclosed it on the company’s website.
(5). The organization and operation of the company’s internal audit are disclosed on the company’s website. It is stipulated that the appointment and removal of the

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Illustration
internal audit supervisor shall be approved by the board of directors and the appointment and removal of internal auditors, evaluation and salary and remuneration should be reported to the board of directors, or the audit supervisor shall be signed by the chairman for approval.
(6). The performance evaluation methods of the company's board of directors and functional committees are approved by the board of directors and self-assessment is conducted every year and the evaluation results are disclosed on the company's website or annual report.

Note 1: Regardless of whether the check box is "Yes" or "No", it should be stated in the summary description field.

Note 2: Evaluation of the independence of CPA

The Company conducts an annual assessment of the independence and suitability of its certifying accountants. This evaluation takes into account the Audit Quality Indicators (AQIs) provided by the accounting firm, assessing five key dimensions and their corresponding indicators: professionalism, quality control, independence, supervision, and innovation capability. These indicators include the audit team's experience, training hours, staff turnover rate, professional support, workload of the accountants, audit hours invested, audit quality composition, quality control support capacity, the impact of non-audit services on independence, years of continuous audit services, deficiencies identified in external inspections, compliance with regulatory improvement directives, and innovative strategies and plans to enhance audit quality.

Furthermore, accountants and their respective firms received invitations to assess various indicators, including the size and reputation of the accounting firm, the nature and extent of non-audit services provided, public funding related to audit, peer reviews, and any legal litigation cases. Additionally, evaluations considered interactions with management and internal audit supervisors. The provision of pertinent information and a statement affirming detached independence and verification efforts was emphasized.

Following the verification of information content by the company's headquarters and subsequent evaluation by the audit committee, the evaluation results for the past three years were presented to the board of directors on January March 21, 2023, Mar 13, 2024 and Mar 11, 2025 respectively.

Evaluation Items/CPA		Result Y/N	consistent with independence?
1.	Whether or not to pass the CPA exam and have an accountant certificate and obtain an accountant qualification.	Y	Yes
2.	Whether there has been fraud, breach of trust, misappropriation, falsification of documents, or criminal acts in business, is determined by the declaration of imprisonment of more than one year.	N	Yes
3.	Whether Guardianship or Auxiliary Declaration has not been revoked.	N	Yes
4.	Whether the bankruptcy declaration has not been restored.	N	Yes
5.	Whether he was a civil servant and was dismissed from office, the period of his suspension has not yet expired.	N	Yes
6.	When the accountant is entrusted with the company's business, whether the overall manpower, time and risk level required for the entrusted case are taken into consideration and reasonable remuneration will be charged. Do not use unfair methods to attract business.	Y	Yes
7.	Whether the accountant continues to pursue professional training as required by the competent authority.	Y	Yes
8.	Does the accountant have the following behavior?
(1) Agree that others use their own name to perform business.
(2) Perform business in the name of another accountant.
(3) Employed by persons not qualified as an accountant to perform the accounting business.
(4) Utilize the status of an accountant and engage in unfair competition in industry and commerce.
(5) Perform business on events that are of interest to him/herself.
(6) To use the name of an accountant as a guarantor outside the accountant business.
(7) Acquisition of movable or immovable property managed in business.
(8) Require, contract or accept unlawful benefits or remuneration.
(9) To solicit business improperly.
(10) Propaganda advertisements other than those introduced by accounting firms for opening, relocation, merger, commissioned by clients and accounting firms.
(11) Secrets of business are leaked without the permission of the appointing authority, the principal or the auditee.
(12) Other competent authorities have determined that they can influence the credibility of the accountant.	N	Yes
9.	Does the accountant have the following behavior?
(1) Being employed by the company for regular work, providing fixed salary or	N	Yes

serving as director and supervisor.
(2) A former director, supervisor, manager of a company or a staff member who has a significant influence on a verification case while leaving the company Two years.
(3) The relationship with the company's person-in-charge or manager who has a spouse, a direct lineage, a direct in-law or a second parent, etc. system.
(4) I or my spouse or underage child has a relationship with the company to invest in or share financial benefits.
(5) I or my spouse, underage children and the company have funds to borrow.
(6) Enforce management advice or other non-accounting business enough to affect independence.
(7) Inconsistent with business events, the competent authority deals with accounting rotations, handles accounting transactions on behalf of others, or otherwise affects independence regulation.

Note 3 : Corporate Governance Officer's implementation in 2025 is as follows:

Although the company is not legally required to establish a corporate governance officer, it has decided to do so in order to enhance corporate governance and overall management. In 2017, the company formed a new corporate governance and sustainable development committee. You can find the organization chart on the company's website at https://www.ablerex.com.tw/esg/2.4.pdf . The special assistant to the chairman, known as Corporate Governance Officer, has been appointed as the convenor of the committee. He oversees the corporate governance, corporate social responsibility and ethical management groups, ensuring effective management of the growing number of related matters.

Prior to fulfilling the legal obligations, the company fulfilled the resolution of the board of directors on August 5, 2019. They appointed the special assistant to the chairman as the full-time director of corporate governance. This role is responsible for handling matters related to corporate governance, protecting shareholders' rights and interests, and strengthening the functions of the board of directors. Special Assistant Damon Chao possesses over three years of experience in managing legal affairs and corporate governance in publicly listed companies, making him a suitable candidate in accordance with the regulations.

For detailed eligibility conditions, please refer to our company's website:

https://www.ablerex.com.tw/esg_2_5_1.php

It has been complying with the requirements for legal training 2024. For more information, visit our company's website: https://www.ablerex.com.tw/esg/2.5.3.PDF

The main responsibilities of the corporate governance manager are to handle matters related to the board of directors and shareholders' meetings in accordance with the law. They are also responsible for preparing minutes of the board of directors and shareholders' meetings, assisting directors in taking office and continuing their education, providing directors with the necessary information to perform their duties, and helping directors comply with laws, among other tasks.

The business execution situation in 2025 is as follows:

Assist independent directors and general directors in performing their duties, providing necessary information and arranging further training:

(1) Provide board members, upon taking office and regularly thereafter, with the latest revisions and developments of laws and regulations related to the company's business field and corporate governance.

(2) Review the confidentiality level of relevant information and provide the company information required by directors to ensure smooth communication between directors and business managers.

(3) Assist independent directors in arranging relevant meetings, in accordance with the Corporate Governance Best Practice Procedure, if they have individual meetings with the internal audit supervisor or certified accountant to understand the company's financial business needs.

(4) Assist independent directors and general directors in formulating annual training plans and arranging courses based on the company's industry characteristics and directors' academic and experience background as per https://www.ablerex.com.tw/esg/2.2.6.PDF.

Assist the board of directors and shareholders' meetings with procedures and resolutions on legal compliance matters:

(1) Report the company's corporate governance operations to the board of directors, independent directors, and audit committee, and confirm whether the company's shareholders' meetings and board meetings comply with relevant laws and corporate governance codes.

(2) Assist and remind directors of the laws and regulations that should be followed when executing business or making formal board resolutions, and provide advice when the board of directors is about to make illegal resolutions.

(3) After the meeting, review the release of important information regarding important resolutions of the board of directors, ensuring the legality and accuracy of the content, and ensuring the fairness of investor trading information.

Draft the agenda of the board of directors and notify the directors seven days in advance, convene the meeting, provide meeting materials, provide advance reminders if interests need to be avoided on the agenda, and complete the minutes of the board of directors meeting within 20 days after the meeting.
Assist in the pre-registration of shareholders' meeting dates in accordance with the law, prepare meeting notices, meeting manuals, minutes, and integrate annual report content within the legal period, and handle change registration matters when amending the articles of association or re-electing directors.
Gradually improve the establishment of Chinese and English versions of corporate governance regulations, implement the board of directors' performance evaluation operations, and continue to conduct regular or irregular publicity and education training for colleagues.
Lead the team to undergo third-party verification of the ESG sustainability report in July 2025 and successfully obtain the verification report. Upload both Chinese and English version of the 2024

Sustainability Report in August.

Assist the Information and Human Resources Department in adopting the ISO 27001 system and completing third-party verification tasks.
Assisted the Company, including all operational sites in Taiwan, in implementing the ISO 14064-1 organizational greenhouse gas inventory system, which successfully obtained third-party verification in 2025.
Assisted the Company in successfully achieving a B grade in the CDP questionnaire performance assessment.

Note 3: Concerns, communication channels and communication with stakeholders:

Stakeholder	Focus on issues		Communication channels, response methods and communication frequency	Communication in 2025
Employee	CRM Economic performance Training and Education Innovative research and development	Supplier Management Compliance occupational safety and health Greenhouse Gas Management	Set up internal communication channels and hold regular labor-management meetings for two-way communication. Establish an employee welfare committee to coordinate and plan various welfare matters for employees and make public announcements. Organize employee education and training, covering newcomers and on-the-job education and training.	The company's internal announcements and e-mail notifications are smooth. Four labor-management meetings were held during the year and the communication was good. The Welfare Committee is operating well and the welfare matters are publicly announced. During 2025, four sessions were held, totaling 220 hrs employee education and training.
Government agencies	Compliance Training and Education CRM Economic performance	Occupational safety and health Innovative research and development Supplier Management Greenhouse Gas Management	Set up a spokesperson mechanism and a contact information channel for interested parties. The corporate website immediately discloses information related to corporate governance, finance, business and other operational performance. The official document exchange contact window interacts with the competent authority to do a good job in corporate governance and compliance with laws and regulations.	The company's website discloses relevant information such as operations, financial business and corporate governance. Publish the 2024 sustainable development report on the public information observation station and the company website on 2025.8.1. Good communication with the competent authorities, no violations.
Customers	CRM Innovative research and development Compliance	Occupational safety and health Supplier Management Training and Education	Set up communication and contact information channels for stakeholders. Set up dedicated customer service personnel to provide customer consulting services or complaint management and other related business matters to maintain the rights and interests of customers. The annual customer satisfaction survey is the focus of the company's internal	Do our best to maintain customer relationship management and implement customer satisfaction surveys as scheduled as a basis for management improvement. The customer satisfaction survey were conducted twice during the year and the average score was 90.7 points to achieve the target.

Stakeholder	Focus on issues	Communication channels, response methods and communication frequency
		management.
Supplier or contractor	Supplier Management
Economic performance
Occupational safety and health	CRM
Compliance
Training and Education	Set up communication and contact information channels for stakeholders.
Actively invite suppliers and partners to sign the Corporate Social Responsibility Letter of Commitment to jointly promote governance, environment and social responsibilities for sustainable development.
Supplier Evaluation and Management	Collaborate with suppliers to fulfill their corporate social responsibilities and new suppliers highly affirm and cooperate to sign.
During the year, evaluations were conducted on ongoing trading suppliers, achieving an overall average score of 97.61 points, meeting the management objectives and demonstrating sound supplier sustainability management.
Shareholder or investor	Economic performance
Occupational safety and health
CRM
Supplier Management	Innovative research and development
Greenhouse Gas Management
Compliance	Set up communication and contact information channels for stakeholders.
The corporate website immediately discloses information related to corporate governance, finance, business and other operational performance.
The annual general meeting of shareholders is held every year and the annual report in both Chinese and English is publicly disclosed.	The company’s website discloses relevant information such as operations, financial business and corporate governance.
The investor connection platform follows the laws and regulations and wholeheartedly serves shareholder or investor inquiries.
The general meeting of shareholders was held on May 28, 2025 and the situation was good.
Bank	Compliance
Greenhouse Gas Management
CRM	Economic performance
Occupational safety and health
Innovative research and development	The corporate website immediately discloses information related to corporate governance, finance, business and other operational performance.
Set up communication and contact information channels, maintain smooth contact with banks and do a good job in the company’s financial and operational work.	The company’s website discloses relevant information such as operations, financial business and corporate governance.
Communicate well with the bank and follow the laws and regulations to serve the bank consultation matters wholeheartedly.

Note 4: Directors' and supervisors' training records in 2025:

Title	Name	Year of Training	Organization	Training	Hours	Qualified “Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE/ TPEx Listed Companies”
Chairman	Wen Hsu	2025	The Institute of Internal Auditors, R.O.C.	Key Practices in Sustainable Information Management and Internal Control/Internal Audit	6	Yes
Direcotr	Y.A.Chen	2025	Securities Business Association of the R.O.C.	Causes of Financial Fraud and Prevention Mechanisms	3	Yes
Direcotr	Y.A.Chen	2025	Securities Business Association of the R.O.C.	Legal Responsibilities of Directors, Supervisors, and Senior Management: Case Analysis	3	Yes
Director	UIS-L.Y.Pan	2025	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit	3	Yes
Director	UIS-L.Y.Pan	2025	Taiwan Corporate Governance Association	Greenhouse Gas Management Practical Workshop and Sustainable Development Seminar	9	Yes
Director	S.G.Wang	2025	Securities and Futures Market Development Foundation	Strengthening Organizational Resilience Through Dual Transformation: AI Governance and Sustainability Governance	3	Yes
Director	S.G.Wang	2025	Securities and Futures Market Development Foundation	How Directors and Supervisors Oversee the Establishment and Implementation of a Robust Risk Management Framework	3	Yes
Direcotr	J.K.Sung	2025	Taiwan Investor Relations Institute	AI Wave and the 2026 Cybersecurity Challenges and Governance Strategies	3	Yes
Direcotr	J.K.Sung	2025	Taiwan Investor Relations Institute	Case Studies and Preventive Measures for Workplace Misconduct (Sexual Harassment and Workplace Bullying)	3	Yes
Direcotr	J.H.Ho	2025	TAIWAN INSTITUTE OF DIRECTORS	Green Energy Digitalization: Innovative Applications and Business Opportunities of AI and Big Data in Energy Optimization	3	Yes

Title	Name	Year of Training	Organization	Training	Hours	Qualified “Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE/ TPEx Listed Companies”
Direcotr	J.H.Ho	2025	TAIWAN INSTITUTE OF DIRECTORS	Artificial Intelligence Trends and Application Scenarios	3	Yes
Ind.Director	Y.J.Ding	2025	Taiwan Corporate Governance Association	Impact of Trump Tariffs 2.0 on the Global Economy	3	Yes
Ind.Director	Y.J.Ding	2025	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit	6	Yes
Ind.Director	Y.J.Ding	2025	Taiwan Corporate Governance Association	Sustainable Succession and the Path of AI-Driven Transformation	3	Yes
Ind.Director	Y.L. Su	2025	Taipei Financial Research and Development Foundation	Information Security: Personal Data Protection Auditing	3	Yes
Ind.Director	Y.L. Su	2025	Taipei Financial Research and Development Foundation	The Commercial Value of Generative AI and Digital Risks	3	Yes
Ind.Director	J.C. Hsieh	2025	Securities and Futures Market Development Foundation	Operational Strategies and Outlook for Taiwan's Industries in the First Half of 2026 Amid Geopolitical Risks	3	Yes
Ind.Director	J.C. Hsieh	2025	Securities and Futures Market Development Foundation	AI Development and Cybersecurity Risks	3	Yes

Note 5: training records of Managers (Including Corporate Governance officer, financial and accounting Manager and Auditors):

Job Title	Name	Year	Organizer	Course	Hours
Chairman	Wen Hsu	2025	The Institute of Internal Auditors, R.O.C.	Key Practices in Sustainable Information Management and Internal Control/Internal Audit	6
V. Chairman	Y.A.Chen	2025	Securities Business Association of the R.O.C.	Causes of Financial Fraud and Prevention Mechanisms	3
V. Chairman	Y.A.Chen	2025	Securities Business Association of the R.O.C.	Legal Responsibilities of Directors, Supervisors, and Senior Management: Case Analysis	3
V. President	J.K.Sung	2025	Taiwan Investor Relations Institute	AI Wave and the 2026 Cybersecurity Challenges and Governance Strategies	3
V. President	J.K.Sung	2025	Taiwan Investor Relations Institute	Case Studies and Preventive Measures for Workplace Misconduct (Sexual Harassment and Workplace Bullying)	3
C.G.O.	Damon Chao	2025	Securities and Futures Market Development Foundation	Green and Transition Finance Action Plans: Sustainability Roadmap and Directors’ Responsibilities	3
C.G.O.	Damon Chao	2025	Securities and Futures Market Development Foundation	Roles and Responsibilities of the Chief Corporate Governance Officer	3
C.G.O.	Damon Chao	2025	Securities and Futures Market Development Foundation	Case Studies on Corporate Financial Statement Fraud	3
C.G.O.	Damon Chao	2025	Securities and Futures Market Development Foundation	Financial Applications of Virtual Assets and Regulatory Challenges	3
Audit Manager	Y.T. Teng	2025	The Institute of Internal Auditors, R.O.C.	Data Analysis Methods and Practical Applications	6
Audit Manager	Y.T. Teng	2025	The Institute of Internal Auditors, R.O.C.	Analysis of Sustainability Reports and Assurance Practices for Sustainability	6

Job Title	Name	Year	Organizer	Course	Hours
				Information
Deputy Accounting Manager	M.H. Liao	2025	Taipei Financial Research and Development Foundation	Recent Amendments to International Financial Reporting Standards (IFRS) and Practical Applications	3
Deputy Accounting Manager	M.H. Liao	2025	Taipei Financial Research and Development Foundation	Trends in the Economic, Fiscal, and Tax Environment in Mainland China and Response Strategies for Taiwanese Enterprises	3
Deputy Accounting Manager	M.H. Liao	2025	Taipei Financial Research and Development Foundation	Common Issues in Domestic and Overseas Holding Structures and Practical Financial and Tax Analysis for Corporations	3
Deputy Accounting Manager	M.H. Liao	2025	Taipei Financial Research and Development Foundation	Legal Liabilities and Case Analysis of Workplace Bullying in Corporations	3

Note 6: Risk management policies and procedures

The risks recognized by the company are unfavorable factors such as potential behaviors, events or the environment, which may affect the company's operating policies and goals, or endanger the company's financial, business and operational functions, weaken competitiveness or lose. Therefore, the company puts risk management at the core of its business management to assess, prevent, control and deal with the risks and crises that may occur or appear in the company's complex and changeable business environment and list major issues and risks. Into the scope of supervision and management corresponding to the company's policy objectives and can be tolerated, to ensure that the company's various businesses and overall operations can continue, stable and healthy development, to achieve the company's sustainable operation, good corporate governance and due diligence corporate social responsibility goals.

Scope of Risk management

The company values the major issues of environmental, social and corporate governance by stakeholders, combined with the operational risks of the company's industrial characteristics. The scope of risk management covers the management of operations, finance, environment, hazards and risks related to relevant laws and regulations and other international regulatory agreements. Its main risk items include but are not limited to the following items:

Ethical corporate management and anti-corruption
Shareholders' equity
Social economic and regulatory compliance
Operational and market risk
Finance, liquidity and credit
Interest rate, exchange rate changes
Cyber security Management
Intellectual Property Management
Climate change and management
Wastewater and disposal management
Occupational safety
Product Safety
Supplier Management

The Structure of Risk management organization

Structure of the company's risk management organization includes the board of directors, the corporate governance and sustainability committee, the internal audit and the management.

The board of directors: top decision-making unit of the company's risk management, appoints and supervises the company's management, is responsible for the company's overall operating conditions and sets precise goals and confirms the overall effectiveness of the risk management and internal control systems.
Corporate Governance and Sustainability Development Committee: Promote and evaluate corporate governance, environmental, social responsibility and other related matters, review and evaluate the company's operational risk management policies and objectives and the appropriateness of the relevant internal control procedures and scope adopted by the company.

Internal Audit: According to the company's risk management policies and evaluations, the audit plan is formulated and implemented and timely improvement suggestions are provided and the annual self-assessment of the company's internal control systems is promoted to facilitate the company's risk control.
Management: The risk management system shall be planned and revised according to the internal, external environment and regulation revised. Therefore, it is then to carry out the risk management and internal control system.

Risk assessment and management strategy

The company integrates and manages all potential risks such as various strategies, operations, finances and hazards that may affect operations and profitability in an active and cost-effective manner and evaluates the severity of the impact of risk events on the company's operations with a risk matrix, Define risk levels and priorities, adopt corresponding risk management strategies and adopt corresponding risk management strategies. The company lists the important risk project management strategies or response measures for risk assessment as follows.

Issue	Risk assessment item	Risk management policy or correction action
Corporate Governance	Ethical corporate management and Anti-Corruption	Formulate "Corporate Governance Best-Practice Principles", "Procedures for Ethical corporate management and Guidelines for Conduct" and set up external stakeholders' communication channels and other mechanisms for implementation.
	Shareholders' equity	Entrust professional stock affairs institutions to handle shareholder matters and set up communication channels between spokespersons and external stakeholders and set up company website to disclose company finance, business, products, corporate governance and other related information.
	Social economic and regulatory compliance	To analyze the changes of relevant laws, regulations, other international laws and take various corresponding measures to continuously evaluate and control. Besides implement corporate governance, perform corporate social responsibility and in accordance with relevant laws and regulations such as the Company Law and the Securities and Exchange Act, the company has formulated internal control systems for daily operations, various management rules and regulations and has obtained the international standard organization ISO 9001 quality management system and ISO14001 The environmental management system certification is based on risk management and legal compliance.
Operation	Operational and market risk	Every business unit shall analyze changes in the industry and take various response action to manage and handle market risk it may occur.

Issue	Risk assessment item	Risk management policy or correction action
	Finance, liquidity and credit	Formulate internal control systems and control and procedures for acquiring or disposing of assets, endorsement guarantees and fund loans.
	Interest rate, exchange rate changes	Through the online exchange rate real-time system and strengthening the interaction with financial institutions, it is possible to study and judge the exchange rate trend. Before quoting to customers, comprehensively consider the future exchange rate trend and the factors that affect the exchange rate.
	Cyber security Management	The Cyber security risk management policy objectives are carried out in Cyber security governance, regulatory compliance and technology application. From system to application, individual to the whole, the Cyber security management and control mechanism is fully implemented to ensure the accuracy, integrity and safety of information and communication, Achieve Cyber security risk management and guarantee the company's operating results.
	Intellectual Property Management	The company values intellectual property rights for industry leaders in the fields of UPS, PQD and other related power conversion and clean energy technologies. Management Measures" and other institutional measures are implemented to protect the company's intellectual property rights.
Environment	Climate change and management	By identifying potential climate risks and opportunities, introducing greenhouse gas verification, analyzing the trends and hot spots of greenhouse gas emissions over the years, as the subsequent setting of greenhouse gas reduction targets. Integrate the concept of reducing environmental impact into each stage of the product life cycle and work together with the supply chain to continuously develop energy-saving products.
	Wastewater and disposal management	Formulate "Energy Resource Management Operating Procedures" so that the water quality meets the criteria of the law. The company is assembled and manufactured and only domestic waste and sewage are discharged to the sewage sewer system. "Waste Management Procedure" The general waste is classified and delivered to qualified recycling companies and general business waste is entrusted to a qualified resource processor for removal and transportation.
Society	Occupational safety	Formulate various strategies and implementation in accordance with laws and regulations. Regular employee health checks shall be conducted. Regular noise level monitoring is conducted in the production workshop.

Issue	Risk assessment item	Risk management policy or correction action
		Regular labor safety awareness campaigns, fire safety training, and emergency drills.
	Product Safety	The laboratories built by the company's R&D center cooperate with certification units to comply with international energy efficiency regulations to ensure that products can be legally sold in various regions around the world and meet customer and product specifications.
In accordance with the different laws and regulations of various countries, the access methods of various electronic products must be submitted to test reports or certificates in accordance with relevant local regulations.
	Supplier Management	The company has established procedures such as "procurement management procedures", "supplier evaluation procedures" and "supplier environmental impact procedures" to evaluate the quality and environmental impact before dealing with suppliers and to confirm the actual situation.

Implementation

The company establishes the Corporate Governance and Sustainability Development Committee to assist the board of directors and functional committees to promote and evaluate related matters such as corporate governance, environment and social responsibility and report to the board of directors once a year on the "implementation of Ethical corporate management", "implementation of corporate social responsibility" and The annual report revealed the "corporate governance implementation" and corporate governance has achieved good results.

Implementation in 2025

The Corporate Governance and Sustainability Development Committee conducts risk assessment and analysis based on stakeholders' concerns about major environmental, social and corporate governance issues and the company's industrial characteristics of the operating risks, establishes risk management policies or countermeasures and submits them to the company's board of directors on 2025.11.03 "Risk management policies and procedures" verification.

Note 7: Insurance for directors

Insured	Insurance Company	Insured Amount (US$)	Insurance Period
All Directors	Cathay Century Insurance	5,000,000	2025.4.12~2026.4.12

Note 8:

Cyber security risk management

corporate governance and a strong sense of social responsibility, the Company's operations are guided by internal control systems and management mechanisms that ensure operational effectiveness, financial reporting accuracy, and legal compliance.

With advances in technology and the increasing prevalence of the Internet, information security risks have become more complex and can impact business operations and lead to financial and operational losses. To address these risks, the Company has implemented comprehensive information security risk management mechanisms, including the "Internal Control Information Cycle", "Internal Critical Information Processing Procedures", "Insider Trading Prevention Management Procedures", "Personal Information Protection Procedures", "Computer Operations Management Measures", and the "Information Security Management System Procedures". In 2023, the Company achieved ISO 27001 certification for its information security management system, enabling all employees to adhere to these regulations and protect the interests of stakeholders and the integrity of the Company's operations.

Information security management mechanism

In alignment with its commitment to sustainable operations and development, the Company advances the objectives of its Information Security Risk Management Policy through three core pillars: Information Security Governance, Regulatory Compliance, and Technology Adoption. This approach strengthens information security management and promotes a "security-based information development" model. The Company prioritizes the confidentiality, integrity, and availability of data processed for customers and employees, ensuring secure data handling at every stage. By providing safe, stable, and efficient information services, the Company supports the adoption of security measures and continuous improvement within its information security management system.

Information Security Policy
Information security governance	Physical and environmental security: ensures that the organisation's physical facilities and environment are subject to appropriate security controls.
Asset Management: The management of an organisation's assets, including their identification, classification, tracking, and protection.
Information Security Incident Management: Establishing policies and procedures for responding to information security incidents and incidents.
Information assurance: ensuring adequate plans are in place to secure and recover information.
Classifying, categorising, and processing information: Ensure that information is classified, categorised, and processed according to its sensitivity.
Compliance	Cybersecurity: Follow relevant regulations and standards to protect the organization's network and data transmission.
Security Development Policy: Develop and implement appropriate security

| | policies to ensure regulatory compliance.
Technical Vulnerability Management: Monitor and manage system and application security vulnerabilities. |
| --- | --- |
| Technology application | Data transfer: Ensure data is appropriately protected during transmission.
Security configuration of endpoint devices: Manage and maintain the security configuration of terminal devices.
Cryptography: Using appropriate encryption techniques to protect sensitive information and communications.
Technology Vulnerability Management: Integrated use of technology tools to identify, assess, and address vulnerabilities. |

Information security management unit

The information security management unit of the company is the Information and Human Resources Department, which is responsible for reviewing the information security governance policies, planning, supervision, and information security management operations of each branch of the company, and monitoring the information security situation of each branch at any time. In case of major information security risk events, report to the general manager in a timely manner, regularly assess information security risks and report to the board of directors.

Information service process management

Applications and changes to resource permissions for information application software and hardware, systems, emails, networks, etc. required by personnel in each unit of the company shall be handled through an electronic application process, which shall be reviewed and approved by the relevant responsible person in charge, and shall be handled after confirmation of authorization.

Application

Approved by Unit Manager

Confirmed by MIS

Acceptance and case close

Information Security Management Solution

The company reviews information security risks through risk identification and risk assessment, confirms the degree of adverse impact of the information security risks on corporate operations, takes corresponding management measures, and reviews information architecture, network activities, network equipment, servers and terminals. Focusing on equipment detection and security settings review, we can check and evaluate whether there are vulnerabilities or old equipment problems at any time, and also respond to the challenges faced by information security, such as APT advanced persistent attacks, DDoS attacks, ransomware, and social engineering attacks. , information theft and other information issues, the planned information security management plan is as follows:

Risk Assessment: Conduct comprehensive risk assessments on a regular basis to identify potential threats, vulnerabilities, and risks.
Security policies and procedures: Implement access controls, password policies, data classification, and other requirements.
Access control: implement authentication and authorization mechanisms to ensure that only authorized personnel can access sensitive information.
Cybersecurity: protecting network infrastructure, including firewalls, intrusion detection systems, vulnerability scans and security updates to reduce cyber threats.
Security Training and Education: Conduct security training and education for employees to increase their awareness of information security.
Monitoring and alerting: Implement monitoring systems to observe network activity and detect abnormal behavior in a timely manner to respond quickly to security incidents.
Incident response plan: Develop a security incident response plan and data recovery strategy to mitigate losses and quickly resume operations.
Regular reviews and updates: Review and update security measures regularly to ensure they are responsive to new threats and vulnerabilities.

Resources in information security management

project	2023	2024	2025
Antivirus software	58,500	96,750	123,000
Maintenance costs	2,363,149	2,209,711	2,177,810
Computer room door control fee	0	0	0
Equipment and software upgrade costs	3,259,830	4,653,578	2,310,577
total	5,681,479	6,960,039	4,611,387

Information security incidents and insurance

The company's information security governance and management mechanism is implemented by all employees in accordance with regulations. No serious information security incidents have occurred. The overall information security risk management is appropriate and the expected goals can be achieved. The company has insurance on its physical assets, and adopts off-site backup of major file data, as well as an information system disaster recovery plan. If future legal regulations and information security management needs require the purchase of information security insurance, the company will evaluate and understand the relevant regulations and supporting facilities. Measures will be decided later.

Information security risk management review and improvement

implements information security internal control implementation and risk supervision and management based on the business scope of its responsibilities and operates the management mechanism process. It also conducts self-inspections on the risk internal control system on an annual basis, conducts self-inspections on information cycle internal controls, and self-assesses information security. Management implementation. The audit unit also tracks the implementation status, and the annual audit plan is included in the inspection items to ensure implementation and effectiveness review or improvement reference basis.

Implementation in 2025(Nov, 2024-Oct, 2025) is as follows:

Execution of Social Engineering Simulation

To enhance employee awareness of social engineering attacks and strengthen prevention capabilities, the company conducted two social engineering simulations in 2025, from June 23 to July 28, covering 280 employees.

Simulation Method and Purpose

Customized emails were sent to all employee accounts, with five simulation emails mimicking common social engineering tactics.
Employee responses were quantified by tracking metrics such as email open rate, link click rate, attachment open rate, and phishing success rate, to inform follow-up training and performance evaluation.

Simulation Results

Item	Number of Employees	Percentage
Opened emails containing unsafe content	20	7.1%
Clicked on malicious links	7	2.5%
Opened/downloaded attachments	8	2.8%
Fell for phishing attempt	2	0.7%

Follow-up Actions

Employees who failed the simulation were required to attend 1-hour cybersecurity training.

All participants completed the course and passed the assessment, achieving a 100% training pass rate.

Regular System Updates

The Kaohsiung FileServer and Taipei MailServer were recently updated to patch known vulnerabilities, ensuring systems remain secure and resilient.

Annual User Permissions Review

User permissions are reviewed annually to prevent unauthorized data access, with all permissions evaluated and adjusted as necessary before year-end.

Centralized Anti-Virus Monitoring

The company utilizes a centralized anti-virus system, Kaspersky, to monitor and swiftly respond to any virus incidents.

Be approved by ISO 27001 Information Security Management System

Ad Hoc Awareness Campaigns on Cybersecurity Threat Intelligence

Recently, it was observed that hackers are distributing malware via spoofed LINE websites to steal personal data and account credentials. Their attack methods include:

Impersonating messaging app websites.
Using search engine manipulation to increase exposure of fake sites.
Distributing malicious installation files with multi-layer backdoors.
Evading antivirus detection.

Examples of recent spoofed websites include:

www[.]lineoe[.]com
www[.]linerm[.]com
www[.]linecl[.]com
www[.]line-tww[.]com

Preventive Recommendations for All Employees:

Download software only from official websites or authorized app stores.
Avoid clicking on links or opening attachments from unknown sources.
Regularly update antivirus software.
Immediately verify suspicious messages and refrain from replying or clicking.

Reporter: Manager of Information and Human Resources Department/ T.M. Lin

(Submit the "Information Security Risk Management Report" to the Audit committee and Board of Directors for review on 2025.11.3)

2.3.4 Composition, Responsibilities and Operations of the Remuneration Committee
A. Remuneration Committee Member Information

Name	Eligibility	Qualifications and experience (Note 1)
Convenor/Independent Director Y.J. Ding	Independent Director and member of Audit committee
Indiana University/ PhD.
Act as Independent Director of Ablerex Electronics Co., Ltd.
Acted as President of IBF Financial Holding, Chairman of Waterland Securities Co., Ltd.
Rich experience in business management, Finance and industry knowledge. None of the provisions of Article 30 of the Company Law.	Mr. Y.J. Ding, his spouse and relatives within the second degree have never served as directors, independent directors or employees of the company or its related enterprises; he, his spouse, relatives within the second degree (or in the name of others) do not hold shares in the company; Moreover, he has not served as a director, supervisor or employee of a company that has a specific relationship with the company; nor has he provided the company or its related companies with business, legal, financial, accounting and other services in the past two years.	2
Independent Director Y.L. Su	Independent Director and member of Audit committee
Ph.D. in System Engineering, Georgia Institute of Technology.
Act as Chairman of Surplux Energy Inc., Director of Z-Com, Inc.
Acted as CEO of United Renewable Energy Co., Ltd.
CEO of General Administration of Arima Group.
Rich experience in business management, Finance and industry knowledge. None of the provisions of Article 30 of the Company Law.	Mr. Y.L. Su, his spouse and relatives within the second degree have never served as directors, independent directors or employees of the company or its related enterprises; he, his spouse, relatives within the second degree (or in the name of others) do not hold shares in the company; Moreover, he has not served as a director, supervisor or employee of a company that has a specific relationship with the company; nor has he provided the company or its related companies with business, legal, financial, accounting and other services in the past two years.	0
Independent Director J.C. Hsieh	Independent Director and member of Audit committee
Doctor of Philosophy (Ph.D.), Institute of Land Economics, National Chengchi University
Act as Committee Member, land-and-urban related Review Committees of Executive Yuan, or Local Cities and Counties, Committee Member, Land Administration Agent Review Committees of Examination Yuan; Examination Yuan's annual Land Administration Examination examiner, question-setting committee member, and grading committee member.
Acted as Consultant of Square Development Co., Ltd., Consultant of Cin Ly Engineering Consultants, Inc., Full-time Professor at the Department of Land Management, Feng Chia University. Rich experience in business management, Finance and industry knowledge. None of the provisions of Article 30 of the Company Law.	Ms. J.C. Hsieh, relatives within the second degree have never served as directors, independent director or employees of the company or its related enterprises; she, relatives within the second degree (or in the name of others) do not hold shares in the company; Moreover, she has not served as a director, independent director or employee of a company that has a specific relationship with the company; nor has she provided the company or its related companies with business, legal, financial, accounting and other services in the past two years.	0

The Committee shall consist of 3 members appointed by resolution of the board of directors. One of the members shall serve as convener.

The professional qualifications and degree of independence of the members of the Committee shall meet the requirements set out in Articles 5 and 6 of the Regulations.

The Committee shall exercise the care of a good administrator to faithfully perform the following duties and present its recommendations to the board of directors for discussion.

Operations of Remuneration Committee and Major resolution in 2025:

The company's remuneration committee consists of 3 people, composed of all independent directors. New elected Independent Directors are Mr. Y.J. Ding, Mr. Y.L. Su and Ms. J.C. Hsieh.
Period of the term: 06-27-23 to 06-26-26. There are 2 meetings in 2025. The attendance of Committee for the 2 meetings:

Title	Name	Meetings (A)	Attendance (B)	Attendance Rate (%)(B/A)
Convener/Independent Director	Y.J. Ding	2	2	100%
Committee/Ind. Director	Y.L. Su	2	2	100%
Committee/Ind. Director	J.C. Hsieh	2	2	100%
Sum		6	6	100%

Other Notice :

In the event the Board of Directors does not adopt or revise the recommendation proposed by Remuneration Committee, the agenda shall indicate the date of Board Meeting, term, agenda content, outcome of board resolution and the company actions to opinions brought by Remuneration Committee (For compensation approved by the Board of Directors surpassing the recommendation brought by the Remuneration Committee, provide explanation of the discrepancy and reason): None.
In the event the member opposes and reserve opinions against the matters resolved by the Remuneration Committee with records or written declaration, describe the date of Board Meeting, term, agenda content, outcome of board resolution and the company actions to opinions brought by Remuneration Committee: None.

To review salary and remuneration periodically

The function of the company's compensation and remuneration committee is to evaluate the salary and remuneration policies and systems of the company's directors, supervisors and managers with a professional and objective status. It meets at least twice a year and may hold meetings at any time as needed to propose to the board of directors Suggestions for reference in decision-making.

The power of the company's compensation and remuneration committee

(1) Regularly review the company's remuneration rule and propose amendments.
(2) Formulate and regularly review the company's directors, supervisors and managers' performance and remuneration policies, systems, standards and structures.
(3) Regularly evaluate the remuneration of the company's directors, supervisors and managers.

Once the compensation and remuneration committee perform its functions, it shall be based on the following standards

(1) Salary management should conform to the company's salary philosophy.
(2) The performance evaluation and remuneration of directors, supervisors and managers should refer to the usual level of payment in the industry and consider the reasonableness of the relationship between personal performance and the company's operating performance and future risks.
(3) Directors and managers should not be guided to engage in behaviors that exceed the risk appetite of the company in pursuit of remuneration.
(4) The ratio of the short-term performance of directors and senior managers and the payment time

of part of the variable salary payment should be determined in consideration of the characteristics of the industry and the nature of the company's business.

(5) The members of this committee shall not participate in discussion and voting on their personal salary and remuneration decisions.

The major resolution of the Remuneration Committee in current year (2025)

Board of Director	the Remuneration Committee	Issue	Resolution	Follow up
12^{th} meeting of 9^{th} Term (2025.03.11)	4^{th} meeting of 5^{th} Term (2025.03.11)	Review the company’s 2024 annual employee compensation and the compensation and distribution of directors.	The proposal was approved after consultation with all the members present and submitted to the board of directors.	Sent to Board of Directors and approved by all directors presented.
16^{th} meeting of 9^{th} Term (2025.12.22)	5^{th} meeting of 5^{th} Term (2025.12.22)	Review the 2025 manager’s year-end bonus.	The proposal was approved by whole committee and submit to BOD.	Sent to Board of Directors and approved by all directors presented.

2.3.5 Implementation of sustainable development and the differences and reasons for the sustainable development of best practice principles of listed companies:

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Explanation^{2}
1. Dose the company established a governance structure to promote sustainable development and set up a dedicated (or part-time) unit to promote sustainable development, those senior Management is authorized by the board of directors to handle and supervised by the board of directors? (OTC companies should report the implementation status, not just compliance or explanation.)	V		1. Under the supervision of the Board of Directors, the Company set up the Corporate Governance and Sustainable Development Committee on 2018.5.2. The Company set up Corporate Governance Officer from 2018.12.1 and approved by Board of Directors and the officer shall oversee all relative amendment of Corporate Governance, Corporate Social Responsibility and Ethical corporate management. This committee is the highest-level sustainable development decision-making center in the company. The chairman serves as the chairman, the Corporate Governance Officer serves as the convener and a number of senior executives’ team from different fields jointly review the company’s core operational capabilities and formulate medium- and long-term sustainable development. plan.
2. The "Corporate Governance and Sustainability Development Committee" serves as a cross-departmental communication platform that integrates vertically and horizontally connected. It has jurisdiction over the "Corporate Governance Team", "Corporate Social Responsibility Team" and "Ethical corporate management Team" for all aspects of environmental, society and corporate governance. Management function, identify sustainable issues related to company operations and stakeholders, formulate corresponding strategies and policies, compile budgets related to sustainable development of each organization, plan, implement and track implementation results to ensure sustainability. The development strategy is fully implemented in the company’s daily operations.
3. The "Corporate Governance and Sustainability Development Committee" reports to the Board of Directors on the implementation results on the implementation of the Company’s	In accordance with Article 7 and 9 of “Corporate Social Responsibility Best Practice Principles” for TWSE/TPEX Listed Companies.”

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Explanation^{2}
			2025 corporate social responsibility in Dec. 2025. The content includes (1) identifying the concerns of stakeholders and formulating action plans to respond; (2) goals and policy revisions on sustainability-related issues; (3) supervising the implementation of sustainable management issues and evaluating the implementation situation. The Board of Directors recognized and affirmed the operation and execution of the "Corporate Governance Sustainability Development Committee".
2. Does the company conduct risk assessments of environmental, social and Corporate Governance issues related to the company's operations in accordance with the materiality principle and formulate relevant risk management policies or strategies? (OTC companies should report the implementation status, not just compliance or explanation.)	V		The company formulated "risk management policies and procedures" on 2020.11.9 to conduct risk assessments on environmental, society and corporate governance issues related to company operations to ensure that the overall operation can be sustained and stable, good corporate governance and due diligence in corporate social responsibility.

According to this procedure, the Corporate Governance and Sustainable Development Committee compiled a "Risk Management Assessment Questionnaire" for the company's risk management categories and risk projects and issued it to all teams in October 2025. All team analyzed and judged the possibility of risk events based on its actual situation. The company has made an analysis of its nature and degree of impact and has reported to the Audit Committee and the Board of Directors in November 2025 on the implementation of the company's 2025 risk management. ESG issues will be included in the risk assessment in the coming year according to the instructions of the Board of Directors.

This disclosure covers the Company's sustainability performance in major locations between Nov 2024 and Oct 2025. The risk assessment boundary is based on the Company and is based on the relevance of the operation of the industry and the degree of impact on the major subject matter.
The Corporate Governance Sustainability Committee conducts analysis and communicates with internal and external stakeholders | In accordance with Article 1, 5, 6 and 9 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.” |

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEX Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			based on the principle of materiality, so as to assess the ESG issues of great significance, formulate risk management policies for effective identification, measurement, supervision and control and take specific action plans to reduce the impact of related risks.
3. Based on the assessed risks, formulate relevant risk management policies or countermeasures as follows: (Note 1)
3. Environmental issues
(1). Does the company establish an appropriate environmental management system based on its industrial characteristics?	V		The company has established and obtained international standard ISO14001 environmental management system certification according to the characteristics of the industry. It attaches great importance to the impact of climate change on the company’s development. By identifying climate risks and opportunities, it conducts annual greenhouse gas verification and analyzes the trend and points of greenhouse gas emissions over the years for follow-up. It’s to set greenhouse gas reduction targets. The environmental management system includes wasted water and waste management and includes aspects of climate change and greenhouse gas to meet the basic principle of compliance with environmental regulations, it will gradually implement and promote environmental sustainability and assigned the corporate governance and sustainable development committee to supervise and manage. The certificate is valid from 7 Nov. 2025 till 7 Nov. 2028.	In accordance with Article 13 and 14 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”
(2). Is the company committed to improving the utilization efficiency of various resources and using recycled materials with low impact on the environment?	V		The company will continue to replace old equipment with new ones. The equipment in the manufacturing process needs to improve the use efficiency standards, eliminate non-compliant low energy use efficiency equipment, pay attention to the use efficiency of main energy equipment, promote energy-saving technologies and carry out energy-saving and reduction measures. Carbon, policies, goals and achievement status refer to the summary description of this environmental issue (4).
The company’s products continue to develop in the direction of high	In accordance with Article 12 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			efficiency, small size and light weight. At the same time, they are intelligent, modular, networked, energy-saving and carbon-reducing. Mark the recycling and waste electronic and electrical equipment instruction marks on the outer packaging materials or stickers in order to reduce the generation of end-user product waste, so as to ensure that there will be no violations of health and safety regulations during the life cycle of each product.
The company actively promotes a wide range of energy reduction measures. We carefully select equipment with high energy efficiency and energy-saving design, aiming to decrease both corporate and product energy consumption. Furthermore, we are committed to expanding the utilization of renewable energy sources to optimize overall energy efficiency.
Concerning the materials used by our company, we strictly adhere to the European Union's RoHS and REACH standards in order to minimize the impact on the environment. In terms of green manufacturing, we prioritize reducing unnecessary resource waste and actively explore ways to develop technologies for waste reduction and reuse.
(3) Does the company assess the potential risks and opportunities of climate change for the company now and in the future and take measures to respond to climate-related issues?	V		The sustainable development of the company has always been the commitment and obligation that the company has adhered to since its establishment. Through the identification of potential climate risks and opportunities, GHG carbon Footprint Verification operations are conducted to analyze the trends and hotspots of GHG emissions over the years, as a follow-up goal for GHG reduction. The company's environmental management system includes wastewater and waste management and incorporates climate change and greenhouse gas aspects. Based on the basic principle of compliance with environmental regulations, it is gradually implemented to promote environmental sustainability. "Energy resource utilization management procedures", "Waste management procedures", "Waste gas treatment and monitoring management procedures", "Environmental	In accordance with Article 17 of “Corporate Social Responsibility Best In accordance with Article 16 and 17 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			supervision and measurement management procedures" have been formulated for all colleagues to follow and the Corporate Governance Sustainable Development Committee has been instructed to carry out Supervision and management. In addition to recognizing the operational risks associated with climate change, our company also incorporates the climate-related financial information disclosure proposal, developed by the Task Force on Climate-Related Financial Disclosures (TCFD) under the International Financial Stability Board (FSB). We have integrated the four essential disclosure elements, namely "Governance," "Strategy," "Risk Management," and "Indicators and Targets," into our operational management. The results of our governance performance are disclosed in our sustainability report, aiming to provide stakeholders with insights into Ablerex’s efforts towards climate change. Through this disclosure, stakeholders can better understand the impacts and opportunities associated with climate-related risks and the corresponding measures we have put in place. As per P.54-63 of the 2024 ESG report. https://www.ablerex.com.tw/esg/ESG2024.pdf
(4) Does the company statistical analysis the greenhouse gas emissions, water consumption and total weight of waste in the past two years and formulate policies on energy conservation and carbon reduction, greenhouse gas reduction, water consumption or other waste management?	V		In order to cooperate with the promotion of energy-saving and carbon-reduction policies, the company has implemented a number of energy-saving and carbon-reduction measures. Also refer to the relevant regulations, according to the actual situation, to develop specific improvement goals. Please refer to our website https://www.ablerex.com.tw/esg/3.6.2.pdf As per Note 6	In accordance with Article 16 and 17 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”
4. Social issues
(1). Does the company formulate relevant management policies and procedures in accordance with relevant regulations and international human rights conventions?	V		The company attaches great importance to the promotion of labor and business ethics policies. In addition to adopting the principles and spirit of the "GRI Standards" global sustainability report issued by the Global Reporting Initiative (GRI) in 2021, formulate and implement In addition to human rights-related policies and in accordance with relevant laws and regulations such as the "Labor	In accordance with Article 18 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Explanation^{2}
			Standards Law", "Employment Service Law" and "Gender Work Equality Law" promulgated by the relevant authorities, the "work rules" are formulated to regulate the rights and obligations of the company and employees. Protect the basic human rights and related rights and interests of employees and believe that every employee should be treated fairly and humanely and formulate "sexual harassment prevention measures, complaint and punishment measures" and provide channels for complaints to maintain gender equality at work and personal dignity. In addition, in order to fulfill social responsibilities, we work hand in hand with our partners and formulate a "Supplier Social Responsibility Best Practice" to expand our influence.
The company's "human rights policy" respects the protection stipulated in the human rights convention and is published on the company's website. https://www.ablerex.com.tw/esg/3.3.1.pdf (Per as Note 4)
The company regularly reviews its operations, supply chain and other related activities every year by paying attention to major social issues, questionnaires, etc. to identify and assess groups at risk and potential human rights risks and formulate a human rights issue control plan based on potential risks. And continue to monitor and improve plan implementation results.
(2). Does the company formulate and implement reasonable employee welfare measures (including compensation, vacation and other welfare, etc.) and appropriately reflect operating performance or results in employee compensation?	V		Employee welfare measures:
The company has established an employee welfare committee to ensure the well-being of our employees. Each year, we allocate funds for employee welfare programs aimed at providing high-quality benefits. These include employee travel subsidies, birthday gifts, wedding allowances, maternity allowances, funeral allowances, and more. Additionally, we offer a self-purchase computer subsidy program and other benefits. Our welfare measures go beyond legal requirements and encompass provisions such as group medical insurance, accident insurance, and health examinations for employees.	In accordance with Article 21 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			Regarding the vacation system, employees are granted two days of weekly rest, as per the labor standards. After one year of employment, colleagues are entitled to ten days of special vacation per year, prorated for those employed for less than a year. In cases of childcare, serious injuries, or major accidents requiring extended leave, employees can apply for unpaid leave to balance personal and family needs.

To ensure clarity and alignment, the company has formulated "Working Rules" in accordance with the Basic Labor Law. These rules cover various aspects such as salary, bonuses, working hours, vacations, attendance assessment, and welfare measures. The aim is to establish clear rights and obligations for both employers and employees, fostering cooperation and career development.

To enhance employees’ work efficiency, the Company provides a wide range of incentive programs, employee benefits, and a comfortable working environment. In addition, various employee welfare activities are organized from time to time to help relieve work-related stress and promote positive interaction among colleagues.

The Company has established an Employee Welfare Committee. In 2025, approximately NTD 4.21 million was allocated to employee welfare funds to plan and provide comprehensive benefits, including subsidies for domestic and overseas employee travel, year-end banquets, birthday gifts, allowances for weddings, funerals and other life events, childbirth subsidies, the establishment of fitness centers, and the procurement of sports equipment. In addition, the Company offers free health check-up programs to ensure proper care for employees’ physical and mental well-being.

Diversity and gender equality in the workplace:
We place great importance on promoting labor and business ethics policies. The company strictly adheres to government regulations, international standards, and norms, and works to eliminate illegal discrimination and ensure equal job opportunities. We condemn forced | |

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			labor and respect employees' freedom of assembly, association, and collective bargaining rights. Our commitment extends to providing a safe and healthy working environment, safeguarding employees' basic human rights, and upholding gender equality and personal dignity at work.

Equal treatment is fundamental to our employment practices. We ensure fairness in employment, salary and benefits, training opportunities, promotion, dismissal, retirement, and other labor rights matters. We do not discriminate based on age, gender, physical or mental disability, race, ethnicity, nationality, religion, or any other status. We actively employ individuals with disabilities and aboriginal employees, respecting their cultural customs and providing appropriate holidays. In 2025, no violations of work rights or human rights were reported.

To ensure transparency and fairness, we have a "Remuneration Committee" responsible for providing competitive and transparent remuneration policies.

The Company complies with the statutory quota employment requirements under the Act for Protecting the Rights and Interests of Persons with Disabilities. In 2025, the Company exceeded regulatory requirements by employing eight persons with disabilities. In addition, the Company actively promotes equal pay for equal work and equal opportunities for career advancement for both genders, thereby fostering sustainable and inclusive economic growth.

From 2023 to 2025, the proportion of female managerial positions consistently exceeded 10% for three consecutive years. In 2025, female employees accounted for an average of 25.48% of the workforce, while female managers represented 11.76%. Furthermore, over 90% (92.60%) of employees hold a college degree or above, and more than 70% (88.77%) are under the age of 50, indicating a stable and well-structured workforce. | |

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			Employee remuneration based on business performance:
According to the Article 25-1 of Aricles of Incorporaion of Ablerex, if the Company have surplus earnings after close of fiscal year, shall be according to the performance of the year to set 6 to 10 percent of its reserves as employees' compensation, and not more than 2 percent of it as directors' and supervisors' remuneration. At least 30% of the total employee compensation shall be allocated to frontline employees. However, the company's accumulated losses shall have been covered. The directors' remuneration must be paid in cash.
In addition to employees directly hired by the company, we may also include employees from affiliated companies who meet specific conditions as part of our remuneration policies.
Salaries are adjusted based on market salary levels, economic trends, and individual performance to maintain competitiveness.
Annually, the Salary and Remuneration Committee considers relevant company policies, the employee performance appraisal system, and corporate social responsibility policies when formulating the salary and remuneration policy.
(3). Does the company provide safe and healthy work environments for its employees and organize training on safety and health for its employees on a regular basis?	V		Employees constitute an integral component of our company, serving as a cornerstone for its sustainable development. We prioritize the creation of a positive working atmosphere to guarantee the safety, both physical and mental, of our workforce. Our commitment extends to fostering workplace well-being, actively attending to the lives and health of our employees and fostering unity among our team. This cohesive force acts as a catalyst, paving the way for the establishment of an efficient, amicable, and diverse environment. Aligned with the pertinent regulations outlined in the "Occupational Safety and Health Law," we have formulated the "Safety and Health Code." This code provides a foundation for employees to implement occupational safety and health management in their daily activities. Regular health examinations are conducted for all employees every three years, reflecting our genuine concern for their physical and	In accordance with Article 20 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			mental well-being. In collaboration with reputable hospitals, we introduce medical and health services within our facilities, thereby championing employee health and safety education. This initiative aids in identifying potential risks in the work environment, allowing employees to adopt safer and more suitable practices, mitigating health hazards in the workplace.

To further enhance the overall well-being of our workforce, we have established a fitness center within our premises. This facility enables employees to strengthen their bodies and rejuvenate during both work and leisure hours, ultimately elevating morale and contributing to improved health indicators. Additionally, we have incorporated friendly spaces, such as a nursery room, washrooms, and dedicated changing rooms for men and women.

As part of our commitment to maintaining a safe and healthy workplace, we engage professional organizations to conduct environmental cleaning, elevator maintenance, water quality testing for drinking fountains, and other essential tasks. This is executed annually as per a meticulously planned schedule, ensuring the overall safety, health, and environmental quality of the workplace for all our employees. Our aim is to provide a high-quality, healthy, and safe working environment that reflects our dedication to the well-being of our valued team members. (Please also refer to pages 73~83 of the company's 2024 ESG report for details)

(1). In 2024, the Company recorded one disabling occupational injury involving an employee. The incident occurred when the employee sustained a laceration to the right index finger caused by the equipment casing during the disassembly of a platform, and medical treatment including suturing was provided at a clinic. In response, the Company strengthened employee safety education and training and reinforced the requirement to wear appropriate personal protective equipment during operations.

For 2024, the Company's occupational safety indicators were as | |

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			follows: Injury Rate (IR): 0.58, Occupational Disease Rate (ODR): 0, and Absenteeism Rate: 0.82%. Please refer to page 81 of the Company's 2024 ESG Report for further details.

(2). In accordance with the provisions of the Occupational Safety and Health Law, the company implements and promotes occupational safety and health management and regularly organizes on-the-job personnel education and training, disaster prevention drills and labor safety and health publicity every year to cultivate employees' correct concept of occupational safety; The site conducts labor safety assessments, operation inspections and plans for safe operation procedures, with the aim of eliminating sources of hazards, preventing work-related injuries and reducing the risk and occurrence of work-related injuries. In 2024, occupational safety and health education and training totaled 202 person-times and 934.5 hours. Please refer to page 79 of the company's 2024 ESG report.

The company rigorously oversees factory safety to proactively prevent any potential hazardous incidents in the workplace. Adhering to the guidelines set forth by the Occupational Safety and Health Law, the company actively enforces and advances occupational safety and health management plans. Additionally, it conducts regular on-the-job personnel education and training, disaster prevention drills, and annual labor safety and health awareness campaigns.

Throughout the year, the company has maintained a record of zero fire incidents within its premises. This achievement underscores our commitment to fostering a secure and healthy work environment for all employees. | |
| (4). Does the company create an effective career development training program for employees? | V | | The company will arrange training for new recruits to understand the company's corporate culture, vision and working environment and put relevant measures on the company's website and internal employee system for all colleagues to follow. External professional training, the | In accordance with Article 21 of “Corporate Social Responsibility Best Practice Principles for |

Evaluation Item	Implementation Status^{1}			Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEX Listed Companies” and Reasons
	Yes	No	Abstract Explanation^{2}
			heads of various departments of the company can assign their colleagues to participate in external professional training according to work needs, to help employees enrich their knowledge and skills, improve work efficiency and quality, so that employees' learning and growth can be linked to the company's development goals. Employees can also request advanced training based on their own duties or professional needs.
Regularly conduct performance appraisals for employees every year to encourage employees to continuously improve their work content, strengthen on-the-job training to enhance their learning skills and better combine personal career planning with company growth. Please refer to pages 75~76 of the company's 2024 ESG report for the 2024 talent cultivation education and training.	TWSE/TPEX Listed Companies.”
(5). Regarding the issues for health and safety of customers, privacy, marketing and labeling, does the company formulate relevant consumer protection policies and appeal procedures to comply with relevant laws and regulations and international standards?	V		The laboratory established by the company's R&D center cooperates with certification bodies to meet international energy efficiency standards, so as to ensure that products can be legally sold in various regions of the world and meet customer and market energy-saving product specifications. Because the laws and regulations of different countries are different, the access methods of various electronic products must submit test reports or certificates in accordance with relevant local regulations. And the company has a customer complaint handling procedure to provide a transparent and effective consumer complaint procedure for products and services. And set up a special area for interested parties on the company website to provide communication channels for interested parties to facilitate consumer complaints and the expression of opinions of various stakeholders. In addition, since 2016, an English corporate social responsibility web page has also been provided for foreign language stakeholders to further understand the company's operating conditions and provide a platform for complaints. The company regularly conducts customer satisfaction surveys every year to understand customer satisfaction with subjective and objective items such as service and product evaluation,	In accordance with Article 23 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Explanation^{2}
			as a reference for the company to continue to maintain or improve in the future.
(6). Does the company formulate a supplier management policy that requires suppliers to follow relevant regulations and issues regarding environmental protection, occupational safety and health, or labor rights?	V		The company formulates procedures such as "Procurement Management Procedures", "Supplier Evaluation Operation Procedures" and "Supplier Environmental Impact Operation Procedures", evaluates the quality and environmental impact of suppliers before trading with suppliers and confirms the actual situation. Since the establishment of the "Supplier Social Responsibility Principles" in 2015, the company supports and encourages high-standard corporate social responsibility practices, informs suppliers about corporate, ethical, labor, environmental and health and safety standards and asks suppliers to cooperate with the company's policies , Respect the basic rights of employees such as freedom of association and collective negotiation.

All new suppliers are subject to evaluation and screening prior to engagement. The assessment covers five key dimensions: quality, management, technology, facilities, and level of cooperation. Only suppliers achieving a minimum overall evaluation score of 70 points upon review are approved and included in the Company's qualified supplier list.

In addition, newly approved suppliers are required to sign a Corporate Social Responsibility (CSR) Commitment, under which they pledge to comply with environmental protection regulations, reduce pollution, promote energy conservation and carbon reduction, safeguard labor rights, prohibit forced labor, discrimination, and child labor, and improve workplace conditions. Suppliers are also required to adhere to relevant regulations concerning environmental protection, safety, and occupational health.

Through these measures, the Company works collaboratively with its suppliers to enhance corporate social responsibility and jointly promote sustainable development and the implementation situation is announced on the company website : https://www.ablerex.com.tw/esg/3.1.3.PDF | In accordance with Article 26 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.” |

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Explanation^{2}
5. Does the company refer to internationally used reporting standards or guidelines and compile reports such as sustainable development reports that disclose the company's non-financial information? Did the previous disclosure report obtain the assurance or assurance of a third-party verification unit?	V		Corporate sustainable development have always been our commitments and obligations since the company was founded. Since 2015, the Company has proactively issued the annual publication "Corporate Responsibility Report of Ablerex Electronics Co., Ltd.". To fully improve the quality of the report disclosure and be in line with international trends, the company's 2024 ESG report follows the guidelines of the Global Sustainability Reporting (GRI) Global Sustainability Report issued by the Global Reporting Initiative (GRI) in 2021 Compiled with rule. It is hoped that by adopting the "GRI Standards" (hereinafter referred to as the GRI Standards) program, the information disclosed in the report can better meet the expectations of stakeholders and fully demonstrate the company's efforts to achieve sustainable development.
The ESG report of the company has been revised to the ESG report from 2024 and it has been verified by third-party in July. (Note 3)	In accordance with Article 29 of “Corporate Social Responsibility Best Practice Principles for TWSE/TPEX Listed Companies.”
6. If the Company has established Sustainable Development Best-Practice Principles based on “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, please describe any discrepancy between the principles and their implementation:
In November 2015, the company's board of directors approved the formulation of the company's "Corporate Social Responsibility Best-Practice Principles" for implementation and in response to legal updates, the board of directors approved the amendment to the "Sustainable Development Best-Practice Principles" on 2021.12.27 to strengthen the implementation of sustainable development. The company regularly reviews the implementation of the code and improves accordingly and there has been no difference in the implementation so far.
7. Other important information to facilitate better understanding of the Company’s corporate social responsibility practices:
(1). Ablerex payout dividends in consecutive 15 years from 2010-2024 in pursuing the maximum interest of shareholders.
(2). The company’s 11^{th} session (2024) just won the top 6-20% of the "Corporate Governance Evaluation". In summary, in the 11 evaluations, a total of 5 top 5% and 6 top 6-20% results were obtained. We will make persistent efforts to improve corporate governance performance and strive for good results.
(3). Ablerex has arranged external consultation and established a team in structuring the relevant system. The ESG report of Ablerex, as per website (https://www.ablerex.com.tw/esg/ESG2024.pdf
(4). Develop and reaffirm a 2025 human rights policy. (Note 4)
(5). Social participation
(5.1) industry-academia cooperation/collaboration project
In addition to providing high-quality products and services to support the global pursuit of cleaner and more reliable green energy, the Company actively participates

Evaluation Item	Implementation Status^{1}
	Yes	No	Abstract Explanation^{2}
in a wide range of social welfare and public-interest initiatives. In recent years, guided by the principle of integrating its core technologies with social contribution, the Company has continuously invested both human and financial resources in areas such as environmental and energy education and the cultivation of green-energy leadership talent.
From the end of 2019 through the end of 2024, the Company invested a total of NTD 2,904,500 in support of multiple industry-academia research programs. These included sponsored and commissioned research projects with National Kaohsiung University of Science and Technology (Nanzih Campus) on “Silicon Carbide (SiC) AC/DC Converter Technologies” and “Uninterruptible Power Supply (UPS) System Technologies.” The outcomes of these projects were published in relevant academic journals by the principal investigators, fostering mutually beneficial development between the Company’s product R&D capabilities and academic research and practice. The Company also expects these research initiatives to further contribute to industrial upgrading both domestically and internationally.
The Company’s industry-academia collaboration programs have been sustained for more than 20 years. In 2024, three managerial personnel participated as supervisors in such programs, benefiting three enrolled students, with a total of 352 hours of engagement.
(5.2) Indonesian Mulandali Tua District Health Care Support Program
In response to the Sustainable Development Goals (SDGs) and their universal values of cross-border humanitarian concern, the Company has allocated resources to Medan, Indonesia, to support the development of basic child healthcare capabilities among local school teachers and community health caregivers. These initiatives aim to enhance fundamental hygiene education facilities and strengthen basic health awareness among school-aged children within local communities.
Following its sponsorship in 2023 of the Sri Lanka Soy Milk Nutrition Program implemented by the Taiwan Health Cooperation and Development Organization, the Company continued its commitment in 2024 by sponsoring a nutritional supplementation program for rural kindergartens in Indonesia. This initiative seeks to improve children’s Body Mass Index (BMI) levels and support healthy growth and development. Through these efforts, the Company provides nutritional support to kindergarten children living in rural areas of Indonesia, contributing to improved childhood health outcomes and long-term community well-being.
(5.3) Literary and artistic activities
Sanxiuyuan in Dapi Township, Yunlin, has hosted outdoor concerts every autumn. Continuing our tradition of support, our company is sponsoring the 2024 Sanxiuyuan Elegant Collection Liuxia Outdoor Concert.
(6) Set up the Corporate Governance Sustainable Development Committee, which has a Corporate Governance Team, a Corporate Social Responsibility Team and a Corporate Ethical corporate management Team. Note 5
(7) The issues of concern, communication channels and communication between the company and stakeholders in 2025 are as Note 2.
(8) The corporate responsibility reports of the past years are placed on the company’s website: https://www.ablerex.com.tw/esg_3_4.php for download.
8. If the corporate social responsibility reports have received assurance from external institutions, they should state as below: The ESG report is verified by Great International Certification Co., Ltd. and it has passed the AA 1000: AS (2018) responsibility principle to carry out Type 1 moderate assurance level assurance.

Note 1: Risk assessment and correction action in 2025

Material topics	Risk assessment items	Risk level	Risk management policy or countermeasures	Risk management execution assessment
Corporate Governance	Ethical management and anti-corruption	Low	Formulate the Corporate Governance Best Practice Principles and the Procedures for Ethical Management and Code of Ethical Conduct and establish communication channels for external stakeholders. and other mechanisms to implement them. In recent years, there have been no violations of ethical management and anti-corruption or fines from the competent authorities.	Effective
	Shareholders' rights and interests	Low	Commission specialized shareholder services agents to handle shareholder matters, establish communication channels between the spokespersons and external stakeholders, and discloses information on finances, business, products, corporate governance, etc. on the Company's website. The company has paid dividends for 13 consecutive years since its listing on the OTC market.	Excellent
	Socioeconomic compliance	Low	Analyze changes in relevant regulations and other international regulations and take various countermeasures for continuous evaluation and control. The Company has fulfilled corporate governance and CSR, formulated internal control measures and various management regulations for daily operations in accordance with the Company Act and the Securities and Exchange Act, and obtained the ISO 9001 Quality Management System and the ISO 14001 Environmental Management System certification to meet the requirements of risk management and regulatory compliance.	Effective
Operations	Operational and market risks	Low	Each business unit analyzes changes in the industries and adopt various countermeasures to control and handle potential market risk crises.	Effective
	Financial, liquidity, credit	Low	Establish internal control systems, and control and implement procedures related to acquisition or disposal of assets, endorsement and guarantees, and lending funds to others.	Ordinary
	Interest rate and exchange rate changes	Low	(1) Continue to strengthen the currency hedging concept of financial personnel and use the online real-time exchange rate system and strengthen interaction with financial institutions to analyze and judge the trend of exchange rate changes to	Effective

Risk assessment items	Risk level	Risk management policy or countermeasures	Risk management execution assessment
		respond to the negative impact of exchange rate fluctuations. (2) Before quoting to customers, comprehensively consider and evaluate future exchange rate trends and factors affecting the exchange rate to determine an appropriate and reasonable quote to minimize the impact of exchange rate changes. (3) A certain degree of natural hedging effect can be achieved through the control of mutual offsets of recurring foreign currency receivables. (4) Evaluate and purchase various derivative financial products that can effectively reduce exchange rate risks in accordance with the company's "Operational Procedures for Acquiring and Disposing of Assets" and have the responsible person in charge strictly control hedging positions to avoid inappropriate transactions to reduce exchange rate risks. exchange losses caused.
Information security management measures	Low	The policy objectives of information security risk management are met in three aspects, information security governance, regulatory compliance, and technology application. From system to application and individual to overall, we fully implement the information security management and control measures to ensure the correctness, integrity and security of information and communication, to achieve information security risk management and protect the results of the Company's operations. The company adopted the ISO-27001 information security management system in 2023 and complete verification by the third-party agency in October.	Effective
Intellectual property management measures	Low	We are one of the leading companies specializing in UPS and power quality disturbance (PQD) equipment in the technical fields of power conversion and clean energy technologies. We value intellectual property rights and have formulated the IP Acquisition, Maintenance and Operation Procedures, the Computer Operation Procedures and others to enforce the protection of the Company's intellectual property rights. The annual summary reports present its operations to the Audit Committee and Board of Directors.	Effective

Material topics	Risk assessment items	Risk level	Risk management policy or countermeasures	Risk management execution assessment
Environment	Climate change and management	Low	By identifying potential climate risks and opportunities and incorporating the GHG inventory operations, we analyze trends and hotspots of GHG emissions over the years and make them the follow-up objectives for GHG reduction. We integrate the concept of reducing environmental impact into all stages of product life cycles and work together with the supply chain to continue developing energy-saving products. The company adopted ISO 14064-1 greenhouse gas inventory and verified by the third-party verification in 2024.	Effective
	Wastewater and waste management	Low	Formulate the Energy and Resources Management Procedures to properly manage water, electricity and other energy resources. The Company specializes in assembly and manufacturing, and only domestic wastewater is discharged to the sewer system. We have requirements for domestic water use in order to conserve water and reduce wastewater. According to our Waste Management Procedures, general wastes are sorted and delivered to qualified recycling operators, and industrial wastes are entrusted to qualified resource processors for disposal.	Effective
Society	Occupational safety	Low	Establishment of various strategies according to laws and execution thereof Employee health examinations are held regularly. The production workshops are regularly inspected for their noise intensity. Promote labor safety education, lectures on fire protection and fire drills. The company is planning to adopt ISO45001 Occupational Health and Safety Management Systems in 2025.	Effective
	Product safety	Low	The laboratory established by the R&D center collaborates with certification	Effective

Material topics	Risk assessment items	Risk level	Risk management policy or countermeasures	Risk management execution assessment
			agencies to comply with international energy efficiency standards, ensuring that products can be legally sold in various regions around the world and meet customer and product requirements. Since the laws of various countries are different, the approval of electronic products shall be made based on the test reports or certificates submitted according to the relevant local regulations.
	Supplier management	Low	We have formulated the Procurement Management Procedures, the Supplier Assessment Procedures and the Supplier Environmental Impact Assessment Procedures, and we assess their quality and the status of environmental impact and verify the actual situation before transactions with suppliers.	Effective

Note: The Corporate Governance and Sustainability Committee conducts risk assessment and analysis based on stakeholders' concerns with material environmental, social and corporate governance topics and the operational risks of the nature of the industry. The risk management policy or countermeasures have been reported to the board meeting on November 3, 2025, together with the Risk Management Policy and Procedures for review.

Note 2 Concerns, communication channels and communication with stakeholders:

Stakeholder	Issues concerned		Communication channels, response methods and frequency of communication	Communication in 2025
Employees	Customer relationship management
Economic performance
Talent Cultivation
Innovation and R&D	Supplier management
Regulatory compliance
Occupational safety and health
Greenhouse gas management	The company's internal announcements and e-mail notifications are smooth.
Four labor-management meetings were held during the year and the communication was good.
The Welfare Committee is operating well and the welfare matters are publicly announced.
During 2025, four sessions were held, totaling 220 hrs employee education and training.	The company's internal announcements and e-mail notifications are smooth.
Four labor-management meetings were held during the year and the communication was good.
The Welfare Committee is operating well and the welfare matters are publicly announced.
During 2025, four sessions were held, totaling 220 hrs employee education and training.
Government agencies	Regulatory compliance
Talent Cultivation
Customer relationship management
Economic performance	Occupational safety and health
Innovation and R&D
Supplier management
Greenhouse gas management	The company's website discloses relevant information such as operations, financial business and corporate governance.
Publish the 2024 sustainable development report on the public information observation station and the company website on 2025.8.1.
Good communication with the competent authorities, no violations.	The company's website discloses relevant information such as operations, financial business and corporate governance.
Publish the 2024 sustainable development report on the public information observation station and the company website on 2025.8.1.
Good communication with the competent authorities, no violations.
Customers	Customer relationship management
Innovation and R&D	Occupational safety and health
Supplier management	Do our best to maintain customer relationship management and implement customer satisfaction surveys as scheduled as a basis for management improvement.
The customer satisfaction survey were conducted twice during the year and the average score was 90.7 points to	Do our best to maintain customer relationship management and implement customer satisfaction surveys as scheduled as a basis for management improvement.
The customer satisfaction survey were conducted twice during the year and the

Stakeholder	Issues concerned		Communication channels, response methods and frequency of communication	Communication in 2025
	Regulatory compliance	Talent Cultivation	achieve the target.	average score was 90.7 points to achieve the target.
Suppliers or contractors	Supplier management
Economic performance
Occupational safety and health	Customer relationship management
Regulatory compliance
Talent Cultivation	Collaborate with suppliers to fulfill their corporate social responsibilities and new suppliers highly affirm and cooperate to sign.
During the year, evaluations were conducted for ongoing trading suppliers, with an average evaluation score of 97.61 points, successfully achieving the set target.	Collaborate with suppliers to fulfill their corporate social responsibilities and new suppliers highly affirm and cooperate to sign.
During the year, evaluations were conducted on ongoing trading suppliers, achieving an overall average score of 97.61 points, meeting the management objectives and demonstrating sound supplier sustainability management.
Shareholders or investors	Economic performance
Occupational safety and health
Customer relationship management
Supplier management	Innovation and R&D
Greenhouse gas management
Regulatory compliance	The company's website discloses relevant information such as operations, financial business and corporate governance.
The investor connection platform follows the laws and regulations and wholeheartedly serves shareholder or investor inquiries.
The general meeting of shareholders was held on May 28, 2025 and the situation was good.	The company's website discloses relevant information such as operations, financial business and corporate governance.
The investor connection platform follows the laws and regulations and wholeheartedly serves shareholder or investor inquiries.
The general meeting of shareholders was held on May 28, 2025 and the situation was good.
Banks	Regulatory compliance
Greenhouse gas management
Customer relationship management	Economic performance
Occupational safety and health
Innovation and R&D	The company's website discloses relevant information such as operations, financial business and corporate governance.
Communicate well with the bank and follow the laws and regulations to serve the bank consultation matters wholeheartedly.	The company's website discloses relevant information such as operations, financial business and corporate governance.
Communicate well with the bank and follow the laws and regulations to serve the bank consultation matters wholeheartedly.

Note 3: Set up the operation and implementation.

Year	Stage	Work projects	period	Scheduled completion date	Execution progress
2025	Planning Phase	1. ESG questionnaire collection and Identify major topics	Jan to Feb	2/E	as planned
		2. ESG Workshop	Mar	3/M	as planned
	Implementation phase	3. Update the outline structure	Mar	3/E	as planned
		4. Collect and expose project information and drafting	Mar to Apr	4/E	as planned
		5. Discussion on the management policy and disclosure project explanatory documents	Apr to May	5/E	5/6
	Confirmation phase	6. Confirmation and finalization of ESG report content	Apr to June	6/13	6/3
	Verification phase	7. Third-party verification company review	June to Aug	7/3	7/3
		8. Graphic Design of the report (Chinese and English versions)	Aug to Sept	7/E	7/15
	Disclosing phase	9. Release the 2022 ESG report in Chinese	Aug	8/1	8/1
		10. Publish the 2022 ESG report in English	Dec	8/15	8/15

亞瑞仕國際驗證股份有限公司
ARES International Certification Co., Ltd.
亞瑞仕國際驗證股份有限公司
ARES International Certification Co., Ltd.

Independent Assurance Statement

Statement No. 000-697/V3-ACGPK

This Independent Assurance Statement by ARES Certification Co., Ltd. on Ablerex Electronics Co., Ltd. ESG Sustainability Report of 2024.

ARES International Certification Co., Ltd. and Ablerex Electronics Co., Ltd. are mutually independent organizations. In addition to the assessment and verification of 2024 ESG Sustainability report, ARES International has no financial relationship with Ablerex Electronics Co., Ltd.

The purpose of this Independence Assurance Statement (hereinafter referred to as Statement) is only to conclude that the relevant issues within the scope of the Ablerex Electronics Co., Ltd.'s ESG Sustainability Report are guaranteed, but not for other purposes. Except for this Statement on the verified facts, for any use of other purposes, or any person who read this Statement, ARES International is not responsible or liable for any legal or other responsibility.

This Statement is based on the conclusions made from the verification of the relevant information provided ARES International by Ablerex Electronics Co., Ltd. Therefore, the scope of the verification is based on and confined to the content of these provided information, and ARES International shall consider that the contents of the information are complete and accurate.

All concerning and questions about the contents or the relevant issues contained in this statement shall be answered by the Ablerex Electronics Co., Ltd.

The Scope of Assurance

The agreed scope of assurance by Ablerex Electronics Co., Ltd. and ARES International includes the following:

The contents of the entire ESG Sustainability Report and all operating performance of Ablerex Electronics Co., Ltd. from January 1st, 2024 to December 31st, 2024.
According to the type 1 of application of the AA1000 Assurance Standard (v3), the assessed nature and degree of the Ablerex Electronics Co., Ltd.'s compliance with the AA1000 Accountability Principles (2018) but excluding the verification of the reliability of the information or data disclosed in the ESG Sustainability Report.

This statement is prepared in Chinese and has an English version for reference. In the event of any discrepancy between the Chinese and English versions, the Chinese version shall prevail.

ARES INTERNATIONAL's Opinion

We summarize the contents of Ablerex Electronics Co., Ltd.'s ESG Sustainability Report and provide a fair opinion of Ablerex Electronics Co., Ltd.'s relevant operations and performance. We believe that the indices such as economic, social and environmental performance of 2024 are presented correctly. The performance indices disclosed in the report demonstrate Ablerex Electronics Co., Ltd.'s efforts to identify and meet stakeholder expectations.

Our verification activities are implemented by a team with the capacity for verifying in accordance with AA1000 Assurance Standard (v3), as well as planning and implemented this part of the activities to obtain the necessary information and data. We believe there are sufficient evidences provided by Ablerex Electronics Co., Ltd. to show that its reporting method according to the AA1000 Assurance Standard (v3) and their self-statement are in line with the GRI standards.

Verification Method

In order to collect evidences related to conclusions, we implemented the following tasks:

Implement the high-level management review for topics from external groups related to ESG Sustainability policy to confirm the appropriateness of the report in this statement.
Discussions about stakeholder's engagement with the managers of Ablerex Electronics Co., Ltd., however, we have no direct contact with external stakeholders.
Interviews with employees related to ESG Sustainability management, report preparation and information provision.
Review the critical developments related to organizations.
Review the scope and maturity of systems related to financial and non-financial reports.
Review the supporting evidences declared in the report, and the process management described in the report and its associated AA1000 Accountability Principles (2018) on the principles of inclusivity, materiality, responsiveness and impact.

Conclusion

The detailed review results of the AA1000 Accountability Principles and the core disclosures of the Global Reporting Initiative (GRI) Standard, Sustainability Accounting Standards Board (SASB) Standards for inclusivity, materiality, responsiveness and impact are as follows:

亚瑞仕國際驗證股份有限公司
ARES International Certification Co., Ltd.
亚瑞仕國際驗證股份有限公司
ARES International Certification Co., Ltd.

The inclusivity
This report reflects that Ablerex Electronics Co., Ltd. engages with its stakeholder through a variety of channels, such as internal and external communication mechanisms and the activities of stakeholders. This report covers topics of concern in stakeholders associated with Ablerex Electronics Co., Ltd., fairly reports, and discloses economic, social, and environmental information. In our professional opinions, this report covers Ablerex Electronics Co., Ltd.'s inclusivity issues.
The materiality
Ablerex Electronics Co., Ltd. publishes the information related to ESG Sustainability to enable stakeholders to judge the Ablerex Electronics Co., Ltd.'s management and performance. In our professional opinions, this report appropriately covers the material issues of Ablerex Electronics Co., Ltd.
Responsiveness
Ablerex Electronics Co., Ltd. responds to requests and opinions from stakeholders. The implementation methods include customer satisfaction surveys and communication mechanisms for numerous internal and external stakeholders. In our professional opinions, this report covers Ablerex Electronics Co., Ltd.'s responsiveness topics.
Impact
Ablerex Electronics Co., Ltd. developed and implemented processes to monitor, measure and account for how their actions affect the wider ecosystem, echoing all the aspects of this report demonstrated by their own management systems and capabilities issue content, and provide the comprehensive and balanced disclosure, such as the declaration of energy projects and carbon footprint verification. In our professional opinions, this report covers Ablerex Electronics Co., Ltd.'s impact topic.

GRI Standards
Ablerex Electronics Co., Ltd. provides declaration of compliance with the GRI Standards. Based on the results of the review, we confirmed that the relevant ESG Sustainability indicators referred to GRI Standards in the report have been completely disclosed, partially disclosed or omitted. In our professional opinions, this declaration covers the Sustainability topics of Ablerex Electronics Co., Ltd.

SASB and TCFD standards
Ablerex Electronics Co., Ltd. provides declaration of compliance with the SASB and TCFD standards. Based on the results of the review, we confirmed that the relevant ESG Sustainability indicators referred to SASB and TCFD standards in the report have been completely disclosed, partially disclosed or omitted. In our professional opinions, this declaration covers the Sustainability topics of Ablerex Electronics Co., Ltd.

Assurance Level
According to the AA1000 Assurance Standard (v3), we verify this statement as a medium level of assurance, as in the scope and method described in this statement.

Responsibility
The responsibility of this ESG Sustainability report, as stated in this statement, is owned by the person in charge of Ablerex Electronics Co., Ltd. The responsibility of ARES International is to provide professional opinions based on the described scope and method, and to provide an independent assurance statement for the stakeholders.

Ability and Independence
ARES International is composed of experts in a various field of management systems. The verification team is composed of members in the professional backgrounds with the qualifications of lead auditor trained in sustainable development, environmental and social management standards such as AA1000AS, AA1000AP, ISO 14001, ISO 14064-1, ISO 14067, ISO 45001 and ISO 9001. This independent assurance statement is based on the ARES International's fair trading guidelines.

On behalf of the assurance team
July 3, 2025
ARES International Certification Co., Ltd. (ARES Certification Group)
Taiwan, Republic of China

Signed by

郭易德
Calvin Chen

AA1000
Licensed Report
000-697/V3-ACGPK

Lead Verifier
C.E.O
Calvin Chen

Note 4

Human rights policy and Implementation

Updated on 2025.12.05

Ablerex Electronics respects and supports the labor standards set forth in the Universal Declaration of Human Rights, the United Nations Global Compact, and the International Labour Organization (ILO) Conventions, and is committed to ensuring that every individual, both within and outside the Company, is treated with equality and dignity. The Company has established a Human Rights Policy Statement, which is implemented across operations through the following seven core principles:

(1) compliance with applicable local laws, regulations, and international standards;
(2) elimination of unlawful discrimination and the reasonable assurance of equal employment opportunities;
(3) prohibition of child labor;
(4) prohibition of inhumane treatment;
(5) prohibition of forced labor;
(6) respect for employees' freedom of association and right to collective bargaining; and
(7) provision of a safe and healthy working environment, as well as the promotion of physical and mental well-being and work-life balance.

In order to uphold the principles of labor and business ethics, the company embraced the tenets and ethos of the Global Reporting Initiative's (GRI Standards) in 2021. Beyond the implementation of human rights-related policies, the company, in accordance with the government's "Labor Standards Act" and other pertinent laws, has established "work rules" delineating the rights and obligations concerning employees' human rights. This proactive approach aims to safeguard the fundamental human rights and related interests of employees, fostering an environment where each employee is treated with fair and humane consideration. Notably, the company has instituted "control measures and punitive measures against sexual harassment" and implemented a grievance channel, fostering gender equality and preserving personal dignity.

Human Rights Assessment

Committed to sustainable development, the company places a premium on people and the environment, assuming and promoting social responsibility for employees, consumers, and the overall environment. In a demonstration of dedication to a safe and healthy workplace, an environmental engineering and health management unit has been established. This unit deploys occupational safety and health personnel to manage the well-being of employees, conducting regular health inspections for in-service employees. Collaborating with partners, the company has formulated a "Supplier Social Responsibility Code" and signed a corporate social responsibility commitment, expanding its positive impact.

Human Rights Concerns and Practices

Compliance with Relevant Regulations and Guidelines

The company has a detached ethical standard and must comply with relevant local government regulations and international standards and regulations. When implementing business activities, it should adopt standards that can provide employees with the greatest guarantees.

Ablerex follows the laws and regulations of the governments in various regions, when there are major changes in the company's operations that may affect the rights and interests of employees, or when there are major changes in employees' positions, they will be notified and discussed in advance.

If the labor contract is to be terminated, a notice period will be given in accordance with the Labor Standards Act as follows:

Those who continue to work for more than three months but less than one year shall be notified ten days ago.
Those who continue to work for more than one year but less than three years will be notified 20 days in advance.
Those who continue to work for more than three years shall be notified 30 days in advance.
Elimination of Discrimination and Ensuring Equal Opportunities

Ensuring equal treatment across employment, salary, welfare, training, promotion, and other labor aspects, the company commits to non-discrimination based on age, gender, physical and mental disabilities, race, ethnicity, nationality, religion, or other factors.

Prohibition of Child Labor

Conforming to the norms of the ILO Convention No. 138 and the UN Convention on the Rights of the Child, the company strictly prohibits the illegal employment of child labor, adhering to specified working hours and conditions. The company maintains a clean record of not employing any child labor in 2025.

Prohibition of Inhumane Treatment

The company expressly prohibits personal injury, improper physical punishment, threats of physical and sexual harassment, verbal violence, or any form of intimidation.

Prohibition of Forced Labor

In adherence to local laws and regulations, the company ensures that working hours, including overtime, adhere to stipulated limits. An attendance system is in place to monitor abnormal attendance, and designated personnel review such cases, notifying relevant supervisors for appropriate work arrangements, prioritizing the health and quality of family life for colleagues.

Respect for Employees' Freedom of Association and Right to Collective Bargaining

Respecting employees' freedom of assembly and association, the company acknowledges the right to collective bargaining in accordance with China's trade union law.

Providing a Safe and Healthy Working Environment
Prioritizing employee health as the greatest wealth, the company offers a comprehensive health and safety plan. In accordance with the Occupational Safety and Health Law, the company implements and promotes occupational safety and health management plans, conducting periodic labor safety assessments and operation inspections. The goal is to eliminate hazards, prevent work injuries, and reduce the risk of occupational injuries.
Physical and Mental Health and Work-Life Balance
The company supports colleagues in strengthening their bodies during leisure time by providing a gymnasium and washrooms. Furthermore, all employees receive a general health check every three years, with the company covering the associated costs. To enhance safety, the company organizes labor safety and health and fire safety training biannually. Upholding quality office environments, the company implements regular cleaning and maintenance, environmental disinfection operations, and drinking water quality checks for drinking fountains, ensuring a healthy, safe, and hygienic workplace.

Human rights risk mitigation measures

Human rights protection training practices
Provide relevant laws and regulations for newcomer training
The company will arrange new recruit training for new recruits, summarizing company profile, business philosophy, quality policy, work rules, employee code of ethics and conduct, management of personal data protection, employee environmental safety and hygiene introduction, Ethical corporate management code, corporate social responsibility Codes, supplier social responsibility codes, human rights policies, major internal information processing and insider transaction management measures, product introductions, Cyber security risk management, respect for intellectual property rights, welfare courses, etc., to understand the company's corporate culture, vision and working environment, And put the relevant measures on the company website and internal staff system for all colleagues to follow.
Provide employee opinions or appeal channels
The company prohibits personal injury, improper corporal punishment, threats of physical, sexual and other harassment, verbal violence or any other forms of intimidation. Set up internal and external feedback or appeal channels.
Occupational Safety Training
The company organizes labor safety and health and fire safety training every year to enhance the awareness of environmental sanitation. Occupational safety and health personnel may return to training in accordance with the regulations of the competent authority to ensure

continuous improvement. And participate in external professional training according to work needs, enrich knowledge and skills, improve work efficiency and quality, and learn and grow to connect with the company's development goals.

The company regularly reviews its operations, supply chain and other related activities every year by paying attention to major social issues, questionnaires, etc. to identify and assess groups at risk and potential human rights risks, and formulate a human rights issue control plan based on potential risks, and continue to monitor and improve plan implementation results.

The company's human rights management policies and specific plans are summarized as follows:

Human Rights Management Policy	Specific Plan
• Provide a safe and healthy working environment
• Support employees in maintaining physical and mental well-being and a healthy work-life balance
• Eliminate unlawful discrimination and reasonably ensure equal employment opportunities	• The Company provides comprehensive health examinations for all employees every three years and conducts workload and stress assessment questionnaires to safeguard employees' physical and mental well-being. In collaboration with medical institutions, on-site healthcare services are offered, along with health promotion and environmental safety education. Health consultations are arranged for employees identified as high-risk cases.
• A fitness center is available within the plant premises, allowing employees to exercise and relax during breaks, thereby enhancing morale and improving overall health indicators.
• In accordance with occupational safety and health regulations, the Company implements an Occupational Safety and Health Management Program and conducts regular training sessions, disaster prevention drills, and workplace safety and health awareness activities each year to cultivate proper safety awareness among employees.
• The Company ensures equal treatment in all labor-related matters, including recruitment, compensation and benefits, training opportunities, promotion, termination, and

	retirement, and strictly prohibits discrimination based on age, gender, disability, race, ethnicity, nationality, religion, or any other status.
Prohibit forced labor and comply with local government labor laws	Implement leave policies and encourage employees to prioritize work-life balance. Working hours (including overtime) shall not exceed the limits prescribed by applicable laws and regulations, and employees shall be provided with at least one rest day within every seven-day period, in order to safeguard physical health and support a healthy balance between work responsibilities and family life.
Promote human rights policies and require suppliers to sign a “Social Responsibility Commitment,” working together to foster sustainable development.	Each supplier is invited to fill in the sustainable development self-evaluation form. As of 2025, the company's suppliers with ongoing transactions have signed a total of 641 social responsibility commitment letters.

Implementation Status:

In 2025, the Company continued to provide education and training programs on human rights protection for employees. A total of 262 training hours were delivered, with 262 employee attendances recorded, representing 74% of the Company’s total workforce. Going forward, the Company will continue to monitor human rights-related issues and promote relevant training programs to enhance awareness of human rights protection and to reduce the likelihood of related risks.
In accordance with Company policy, the Company does not employ child labor.

Note 5: To improve and implement the management functions of the company in all aspects of environment, society and corporate governance, the "Corporate Governance and Sustainability Development Committee" is specially set up, under the jurisdiction of the "Corporate Governance Team", "Corporate Social Responsibility Team", "Ethical corporate management Team".

The 2026 Implementation Plan are as follows:

Item	Description	Implementation Plan
1	The Corporate Governance and Sustainability Development Committee plans, coordinates, and monitors the implementation of its responsibilities in accordance with applicable laws and regulations, rules and guidelines issued by the competent authorities, and the Company's internal management policies.	In accordance with applicable laws and regulations, announcements issued by the competent authorities, and the Company's internal management policies, the Company carries out updates to its internal rules and procedures throughout the year and monitors the implementation status of each item.
2	The Committee regularly reports to the Board of Directors, prior to the end of each fiscal year, on the implementation results of the annual action plan, and formulates the execution plan for the following year.	Execution plan in 2026
1. Approval by the Board of Directors of the draft ESG Report (including the stakeholder questionnaire survey)
2. Annual Risk Assessment Report
3. Intellectual Property Management Plan and Implementation Status
4. Information Security Risk Management Implementation Status
5. ISO 14064-1 Greenhouse Gas Inventory and Verification
6. ISO 14067 Product Carbon Footprint Inventory and Verification
7. ESG Report Assurance (Third-Party Verification)
8. Publication of the ESG Report
9. ISO 45001 Certification	1. Q2
2. Q4
3. Q4
4. Q4
5. Q2
6. Q3
7. Q3
8. Aug(Chinese Version)/Q3(English)
9. Q3

| | | Audit (Annual Review)
10. ISO 27001 Certification Audit (Annual Review)
11. Annual Report on the Implementation of Sustainable Development Initiatives
12. Annual Report on the Implementation of Ethical Corporate Management Practices | 10. Q3
11. Q4
12. Q4 |
| --- | --- | --- | --- |

It has been reported to the company's board of directors on 2025.12.11 about the company's "implementation of promoting sustainable development".

Note 6.

Year Item	Green House Emission
	2022	2023	2024
Scope1 (Tons CO2e/Year)	112.6000	57.6034	122.0818
Scope2 (Tons CO2e/Year)	427.7000	365.9762	700.4922
Scope3 (Tons CO2e/Year)	-	342.6696	639.9827
Total annual emissions (Tons CO2e/Year) (Scope1+Scope2+Scope3)	540.300	766.249	1,462.557
Standalone revenue (NTD Thousand)	2,715	2,384	2,431
Greenhouse gas emission intensity (Tons/NTD Million)	0.199	0.321	0.602

In order to follow the promotion of energy conservation and carbon reduction policies, the company has implemented a number of energy conservation and carbon reduction measures. We also refer to relevant regulations and develop specific improvement goals based on actual conditions. Please refer to our company's website https://www.ablerex.com.tw/esg/3.6.2.pdf

(1). Since 2016, the Company has conducted greenhouse gas (GHG) inventories for its Taipei office and Pingtung plant in accordance with the ISO 14064-1 methodology. In 2024, a comprehensive GHG inventory covering Categories 1 through 6 was carried out and the inventory boundary include all seven operating sites across Taiwan. The major identified sources of greenhouse gas emissions include electricity consumption, transportation vehicles (diesel), refrigeration equipment (refrigerants), employee business travel, and logistics and freight transportation.

In 2024, the Company's greenhouse gas emission intensity (Scopes 1, 2, and 3) was 0.602, representing an increase compared to the 2023 emission intensity of 0.321. This increase is primarily attributable to the expansion of the inventory boundary in 2024 to include all seven operating sites across Taiwan, whereas the 2023 inventory covered only the Taipei Headquarters and Pingtung Plant II. As a result, the two years are not directly comparable on a like-for-like basis.

Electricity/Oil consumption in the last 3 years:

Year	Electricity consumption (GJ)	Diesel consumption (GJ)	Summation
2022	3,958.470(99.67%)	13.070(0.33%)	3,971.540
2023	3,684.520(94.90%)	198.150(5.10%)	3,882.670
2024	5,320.190(94.54%)	307.200(5.46%)	5,627.390

Note: 1. Unit GJ; 1KWH=0.0036GJ
2. No renewable energy used in 2024

(2) Water consumption in the last 3 years:

water type	Standards/methodologies/ assumptions	Consumption
		2022	2023	2024
Municipal water supply (tap water)	water bill (Thousand liters)	5,869	5,676	6,825
Total water consumption (thousand liters)		5,868	5,676	6,825
Total number of employees (person)		330	344	347
water intensity (thousand liters/person)		17.785	16.500	19.669

Note: During 2022-2023, the greenhouse gas inventory covered the Taipei office and the Pingtung plant. In 2024, the inventory scope was expanded to include all seven operating sites across Taiwan.

The company's product manufacturing is mainly assembly. The waste and sewage discharged in each operation site and factory area is mainly domestic sewage. All wastewater is discharged to the sewage sewer system in accordance with regulations. The water intensity in 2024 is 19.669 thousand liters per person, which is a $19.2\%$ increase than 16.500 thousand liters per person in 2023. It is due to the inventory boundary in 2024 to include all seven operating sites across Taiwan, whereas the 2023 inventory covered only the Taipei Headquarters and Pingtung Plant II. As a result, the two years are not directly comparable on a like-for-like basis.

The carbon emissions arising from water usage account for less than 1% of the Company's total greenhouse gas (GHG) emissions. Carbon emissions from waste treatment account for only 2% of the Company's indirect emission sources. Therefore, these issues have not been identified as highly material in the Company's ESG materiality assessment. The Company's GHG inventory is verified by third-party verification bodies, and the GHG verification opinions for the past two years are disclosed on the Company's website.

(3) Waste management

waste code	Item	type	Treatment	Unit	2022	2023	2024
D-1801	General industrial waste	Household trash	Incineration	Ton	5.1700	5.2400	88.9945
E-0217	Hazardous business waste	Note 1	Physical Treatment	Ton	0.0900	0.1470	0.1000
E-0221	Hazardous business waste	Note 2	Physical Treatment	Ton	0.1100	0.0630	0.1200
General industrial waste- septage			landfill disposal	Ton	-	-	2.66
Total business waste				Ton	5.3700	5.4500	91.8745
Standalone Revenue				million	2,715	2,384	2,431
Waste intensity				mt/ million	0.0020	0.0023	0.0378

The company's product manufacturing is mainly assembly and the waste areas in each operation site and factory area are divided into two categories: general waste and industrial waste. Among them, general industrial waste is entrusted to local qualified clearing and transport operators to transport to the government-designated incineration plant or landfill field. The waste intensity in 2024 is about 0.0378 metric tons of waste per million NTD in revenue, which is higher than the 0.0023 metric ton of waste per million NTD in revenue in 2023. This is due to the inventory boundary in 2024 to include all seven operating sites across Taiwan, whereas the 2023 inventory covered only the Taipei Headquarters and Pingtung Plant II. As a result, the two years are not directly comparable on a like-for-like basis. Carbon emissions from waste treatment account for only 2% of the Company's indirect emission sources. Therefore, these issues have not been identified as highly material in the Company's ESG materiality assessment.

In accordance with the Company's plan, starting from 2026, in addition to including all of the Company's operating sites in Taiwan in the greenhouse gas inventory, key subsidiaries—namely the Suzhou plant and the Singapore office—are also planned to conduct greenhouse gas inventories and obtain verification by independent third-party institutions.

2.3.6 Ethical corporate management implementation status deviation and reasons of Ethical corporate management for TWSE/TPEx companies :

Evaluation Item	Implementation Status
	Yes	No	Abstract Explanation
1. Establishment of ethical corporate management policies and programs
(1). Does the company formulate an ethical corporate management policy approved by the board of directors and clearly state the policies and practices of Ethical Corporate management in the regulations and external documents and the commitment of the board of directors and management to actively implement the business policy?	V		The inaugural edition of Ablerex's Ethical Corporate Management Best-Practice Principles received approval from the Board of Directors on May 12, 2014. Since its inception, these principles have undergone revisions to align with evolving regulations from competent authorities. Furthermore, the Corporate Governance and Development Committee conducted an assessment on December 1, 2018, in adherence to Corporate Governance Evaluation standards.
This commitment to ethical corporate governance extends to the active coordination of relevant indicators, highlighting the implementation status on the company's webpage corporate governance zone, annual report, and during board of directors' meetings. This approach ensures a transparent and comprehensive integration of these principles into both internal management and external business activities, aligning seamlessly with the company's ethical corporate management code.
The English-language Corporate Governance Zone on the company's website is an ongoing project, continually refined to present a detailed overview of the company's operations. This strategic effort aims to facilitate a comprehensive understanding for international stakeholders regarding the company's implementation strategies and specific measures.
In compliance with legal requirements, all directors elected on or after June 27, 2023, as well as senior management, are obligated to sign a statement confirming their adherence to the Ethical Corporate Management Policy. This underscores the company's unwavering commitment to ethical business practices and governance.	In accordance with Article 4, 5, 8, 18 and 21 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”
(2). Does the company establish an evaluation mechanism for the risk of unethical, regularly analyze and evaluate business activities with a higher risk of unethical in the	V		On August 5, 2019, the board of directors of the company endorsed revisions to the "Ethical Corporate Management Best-Practice Principles." Subsequently, on March 19, 2020, the "Procedures for Ethical Corporate Management and Guidelines for Conduct" underwent a revision to articulate specific measures aimed at risk assessment and the prevention of both ethical and unethical operations.
In a proactive stance, on December 1, 2018, the Corporate Governance and	In accordance with Article 7 of “the Ethical Corporate Management Best-Practice Principles for

Evaluation Item	Implementation Status			Deviations from “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
business scope and formulate a plan to prevent unethical, at least listed activities stated in Article 7, Paragraph 2 of the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies?			Sustainable Development Committee, guided by corporate governance evaluation indicators, assumed responsibility for coordinating efforts to forestall illegal situations. This involved establishing communication channels for external stakeholders and implementing various mechanisms to preclude unethical behaviors. The ongoing monitoring of implementation status is coupled with an annual audit plan, incorporating inspection items that ensure the efficacy of these measures, providing a foundation for subsequent reviews and improvements. In a further commitment to ethical practices, the company revised its approach to bribery risk assessment and control. This includes the provision of avenues for anonymous reporting, shielding whistleblowers from reprisals, and ensuring that they are not subjected to improper treatment for their reporting. These initiatives collectively fortify the company's dedication to ethical corporate conduct and its robust preventive measures against malpractices.	TWSE/TPEx Listed Companies”
(3). Does the company clearly set out the operating procedures, behavior guidelines, punishment and appeal system for violations in the prevention of unethical behavior, implementation and regularly review and revision of the plan before it is revealed?	V		In alignment with the stipulations outlined in the "Ethical Corporate Management Best-Practice Principles" and in compliance with pertinent laws and regulations, the Company has developed comprehensive documents such as the "Procedures for Ethical Corporate Management and Guidelines for Conduct." Moreover, specific codes, namely the "Code of Ethical Conduct for Directors, Supervisors, and Managers" and the "Code of Ethical Conduct for Employees," have been established. These documents serve to define dishonest behaviors and provide clear directives for the company's personnel, outlining what they should be attentive to, prohibiting certain actions, and detailing procedures for addressing issues during business operations. To ensure the effective implementation of these regulatory measures, the company's website features an investor connection platform, stakeholder contact information, and customer service pages. These avenues facilitate communication for various information seekers and feedback contributors, allowing them to reach out to the relevant personnel within the company. Regular tracking of the implementation status is conducted, with the annual audit plan incorporating these aspects as audit items. The Corporate Governance Development Committee diligently reports the outcomes of this implementation to the board of directors, ensuring a thorough	In accordance with Article 2, 6, 10-17 and 26 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item	Implementation Status
	Yes	No	Abstract Explanation
			review of effectiveness and providing a basis for continuous improvement. This comprehensive approach underscores the company's commitment to transparency, ethical conduct, and continuous enhancement of its corporate governance practices.
2. Fulfill operations ethical corporate management policy
(1). Does the company evaluate business partners’ ethical records and include ethics-related clauses in business contracts?	V		In the course of conducting business activities, the company consistently monitors industry transactions and meticulously assesses potential partners in financial and other relevant aspects. This scrutiny aims to identify any history of dishonesty and, where possible, establish a foundation of integrity in all contracted agreements. To fortify its stance against unethical practices, the company has implemented penalty-related provisions. These provisions serve the dual purpose of averting losses stemming from dishonest conduct and ensuring the utmost integrity throughout the company’s claims and transaction processes.
While not yet fully integrated into bilateral sales contracts, the company has been proactive since 2016 in encouraging new supplier partners to endorse the "Supplier/Subcontractor's Social Responsibilities Letter of Commitment." Simultaneously, the company has publicly disclosed "Ethical Corporate Management Best-Practice Principles " along with the " Code of Ethical Conduct for Employees" and other relevant specifications. This collective effort is designed to foster compliance and emphasizes the company's commitment to ethical business practices. Through these initiatives, the company seeks to promote a culture of honesty, transparency, and responsible conduct throughout its supply chain and internal operations.	In accordance with Article 9 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”
(2) Does the company set up a dedicated unit to promote corporate ethical management under the board of directors and regularly (at least once a year) report to the board of directors on its ethical corporate management policy and plans to	V		The Company, under the guidance of the Board of Directors, established the "Corporate Governance and Sustainable Development Committee" in accordance with the Corporate Governance Evaluation Indicators on December 1, 2018. Furthermore, a Corporate Governance Officer was appointed on August 5, 2019, responsible for reviewing the "Ethical Corporate Management Best-Practice Principles" and overseeing related initiatives.
Following the announcement, the Company has been conducting educational	In accordance with Article 17 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item	Implementation Status			Deviations from “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
prevent unethical and monitor implementation?			training and awareness campaigns to ensure that all employees and relevant stakeholders are well-informed about and committed to the ethical corporate management policy. These efforts are ongoing and serve to promote the successful implementation of ethical corporate management.
To maintain transparency and accountability, the Company commits to reporting annually to the Board of Directors on the progress and implementation of ethical corporate management. These reports are presented in December every year, ensuring that the principles and practices of ethical corporate management continue to be upheld within the organization.
(3) Does the company establish policies to prevent conflicts of interest and provide appropriate communication channels and implement it?	V		To avoid conflicts of interest, Ablerex has stipulating both Chinese and English version of “Procedures for Ethical management and Guidelines for Conduct”, “Guidelines for the Adoption of Codes of Ethical Conduct for Directors, Supervisors and Managers”, “Guidelines for the Adoption of Codes of Ethical Conduct for Employees” and “Rules of Procedure for Board of Directors Meetings”, which clearly stated the managerial procedures and communication channels. The website provides the stakeholder area, the investor area, etc. and also informs the stakeholders of the presentation and communication in the Corporate Social Responsibility Report (page 17 of the 2024 ESG Report). The Directors, Supervisors and Managers are also highly self-discipline that they express opinions and answer questions while absent in discussion and voting when the discussion issues are related to their own interests. ESG report as per https://www.ablerex.com.tw/esg/ESG2024.pdf	In accordance with Article 19 and 23 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”
(4) Whether the company has established an effective accounting system and internal control system for the implementation of ethical corporate management and the internal audit unit based on the results of the assessment of the risk of unethical behavior, draws up	V		The Company has implemented a robust accounting system and internal control system. Regular self-evaluations are conducted annually to assess the effectiveness of the internal control system, ensuring that its design, implementation, and execution align with established standards.
To ensure the proper implementation of ethical corporate management, the annual audit plan includes a review of this aspect as one of the audit items. The Corporate Governance and Development Committee provides reports to the board of directors regarding the implementation status, thus ensuring that the implementation is monitored, reviewed, and serves as a reference for potential	In accordance with Article 20 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item	Implementation Status			Deviations from “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
relevant audit plans and checks the compliance with the plan to prevent unethical, or commission a CPA to perform the audit?			improvements.
(5). Does the company regularly hold internal and external educational trainings on ethical corporate management policy?	V		The company actively sends personnel to participate in external education training and advocacy meetings related to external related integrity operations. Internally, it promotes and guides the annual newcomer’s education and actively promotes employees in various meetings (Increased policy advocacy, human rights and Ethical Management, corporate social responsibility for report items in labor-management conferences) from time to time. Foster a clean, honest, fair and responsible attitude. Please refer the Chinese web site : (https://reurl.cc/E1gv4R)	In accordance with Article 22 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”
3. Operation of the impeachment channel
(1) Does the company establish both a reward system and an impeachment hotline, as well as pointing an appropriate person to follow-up for the accused?	V		The company has stipulated reporting, reward systems and dedicated personnel in the "Procedures for Ethical Management and Guidelines for Conduct". The company’s website also discloses the contact information and email addresses of the company’s supervisors, spokespersons and internal auditors (path: https://www.ablerex.com.tw/esg/3.7.2.pdf ), if any If any company personnel are found to have violated ethics, they may be reported directly.	In accordance with Article 23 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item	Implementation Status			Deviations from “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
(2) Has the company established standard operating procedures for investigations to receive reports, follow-up measures to be taken after the investigation is completed and related confidentiality mechanisms?	V		Ablerex has established a reporting system in Article 21 of the “Guidelines for the Operational Procedures and Conduct of Honest Business Conduct”, which describes the prosecution channels, information that should be provided and the handling procedures after receiving the reports. Upon receipt of the report, the designated personnel will follow the prescribed procedures. Processing, written statements keep the identity of the prosecutor and the contents of the prosecution confidential. If the investigation is true, the prosecutor is immediately required to stop the relevant actions and after the confirmation, it is appropriate to dispose of articles 21 to 23 of the code and if necessary, seek compensation for damages through legal proceedings. Will be punished according to relevant company regulations	In accordance with Article 23 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”
(3) Does the company take measures to protect prosecutors from improper disposition due to the report?	V		The “Code of Ethical Conduct for Employee” stipulates those colleagues has the reporting responsibilities and obligations. If any violation of laws, regulations, or the Code is discovered, it should be reported and reported to the supervisor. During the investigation of the company’s handling of the report, it will Full confidentiality and protection of the parties’ privacy rights and their personal interests and promised to protect the prosecutors from improper treatment due to the prosecution. The personnel participating in the investigation shall be responsible for the confidentiality of the content of the complaint. Violators shall be transferred by the competent authority to the Personnel Supervisor for discussion.	In accordance with Article 23 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”
4. Strengthening information disclosure
Does the company disclose its ethical corporate management policies and the results of its implementation on the company’s website and MOPS?	V		Ablerex discloses “Ethical Corporate Management Best-Practice Principles” and the related measures “Procedures for Ethical Management and Guidelines for Conduct” as per https://www.ablerex.com.tw/esg_5.php
The implementation of Ethical Corporate Management as per https://www.ablerex.com.tw/esg/4.2.7.pdf
The company’s 11th (2024) score won the top 6-20% of the "Corporate Governance Evaluation" and the 2%–10% tier in the market capitalization category below NTD 5 billion among non-financial enterprises, regardless of listing status.	In accordance with Article 25 of “the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item	Implementation Status
	Yes	No	Abstract Explanation
			In summary, in the 11 evaluations, a total of 5 top 5% and 6 top 6-20% results were obtained. We will make persistent efforts to improve corporate governance performance and strive for good results.
There have been no irregularities records or reports of the company and will continue to communicate adequately and convey the correct business philosophy.
5. If the company has established the ethical corporate management policies based on the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy between the policies and their implementation.
Ablerex stipulated “Procedures for Ethical Management and Guidelines for Conduct”, “Codes of Ethical Conduct for Directors, Supervisors and Managers” based on “Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”, the related regulations and the mission statement of honesty, transparency and responsibility as the regulations of daily operations for all employees. There is no discrepancy between regulations and implementations.
6. Other important information to facilitate a better understanding of the company’s ethical corporate management policies.
Ablerex stipulated “Operational Procedures for Handing Material Inside Information” and “Procedures for the Prevention of Insider Trading” which stated the directors, managers, employees and consultants to exercise the due care of a good administrator and signed the confidential agreements as the requests of the Ethical Corporate Management Best-Practice Principles. Directors, managers, employees and consultants, who are aware of the inside information, shall not reveal the inside information. Directors, managers, employees and consultants shall not ask or collect the undisclosed inside information which is not relevant to their duties.
In order to enable insiders to follow and refer to, the relevant insiders (directors, supervisors, managers, employees, etc.), insider trading and insider equity-related laws and regulations and applicable precautions, etc., are referred to the competent authority’s publicity manual in this manual The company’s Chinese website (Ablerex Electronics Co., Ltd.) is subject to advocacy.

2.3.7 Other Important Information Regarding Corporate Governance: N/A

2.3.8 Enforcement of internal control shall reveal the following items:

Declaration of Internal Control: Please refer to Page 169 of Annual Report.
If the company is requested by the SEC to retain CPA’s service for examining internal control system, the Independent Auditor’s Report must be disclosed: None.

2.3.9 Major Resolutions of Shareholders' Meeting and Board Meetings up to the date of the annual report printed.

A. Major Resolutions of Shareholders' Meeting

Date	Shareholders' Meeting	Major Resolutions
2025/5/28	General Shareholders Meeting	Matter to be Approved
1. Adoption of the 2024 Business Report and Financial Statement				Ex-Dividend Date: July 10, 2025
The earnings distribution recognized by the shareholders 'meeting of the company, the shareholders' cash dividend distribution was completed on Aug 5, 2025. (Totally NT$2.00 per share)
		Attendance to vote	Affirmative vote	Against vote	Abstention vote
		28,680,744	28,461,603	47,074	172,067
		100%	99.24%	0.16%	0.60%
		Voting method: voting
Voting Status: Passed
		2. Adoption of the Proposal for Distribution of 2024 Profit
		Attendance to vote	Affirmative vote	Against vote	Abstention vote
		28,680,744	28,460,993	47,745	172,006
		100%	99.23%	0.17%	0.60%
		Voting method: voting
Voting Status: Passed
		Matter to be Discussed
1. Amendment to “Article of Incorporation”				Has applied had been approved on 2025.6.03 to be registered by the Ministry of Economic Affairs and announced on the company's website.
		Attendance to vote	Affirmative vote	Against vote	Abstention vote
		28,680,744	28,460,791	48,638	171,315
		100%	99.23%	0.17%	0.60%
		Voting method: voting
Voting Status: Passed

B. Major Resolutions of Board Meetings

Item	Date	Board Meetings	Major Resolutions
1	2025.1.15	Board Meeting	【the 11^{th} meeting of the 9^{th} term】
1. Approval of new capital loans to related parties Ablerex Latam Corporation for December 2024.
2. Approved the motion on the application for the renewal of credit limits.
2	2025.3.11	Board Meeting	【the 12^{th} meeting of the 9^{th} term】
1. Approve the Consolidated report and Business report for 2024
2. Approved the assessment of the independence of the auditors.
3. Approved the declaration of internal control system of Year 2024.
4. Approved the directors' and employees' compensation of Year 2024.
5. Approved the earning distribution of the Year 2024.
6. Approved the amendment to the "Articles of Incorporation".
7. Approved the purchasing liability insurance through the company's directors and managers.

Item	Date	Board Meetings	Major Resolutions
			8. Approved the date and agenda of the Year 2025 Annual Shareholders’ Meeting.
9. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for February 2025.
10. Approved the motion on the application for the renewal of credit limits.
11. Approved the case of Endorsement guarantee.
3	2025.5.5	Board Meeting	【the 13^{th} meeting of the 9^{th} term 】
1. Acknowledged the Q1 consolidated financial statements of Year 2025.
2. Approved the company’s "ESG Sustainability Report".
3. Approved to support the Company’s sustainable development initiatives and the promotion of cultural and artistic activities, it is proposed that the Company donate NTD 1,000,000 to the Yunlin Sanxiuyuan Cultural Foundation to sponsor its cultural and arts promotion programs.
4. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for Mar. & April, 2025.
5. Approved the motion on the application for the renewal of credit limits.
4	2025.8.4	Board Meeting	【the 14^{th} meeting of the 9^{th} term 】
1. Acknowledged the Q2 consolidated financial statements of Year 2025.
2. Approved the amendment to the Internal control system "remuneration cycle" .
3. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for May to July, 2025.
4. Approved the motion on the application for the renewal of credit limits.
5. Approved the case of Endorsement guarantee.
5	2025.11.3	Board Meeting	【the 15^{th} meeting of the 9^{th} term 】
1. Acknowledged the Q3 consolidated financial statements of Year 2025.
2. Approved the amendment to the "Sustainable Development Best Practice Principles"
3. Approval of new capital loans to related partie Ablerex Latam Corporation & Ablerex Electronics Italy Srl respectively for Aug to Oct., 2025.
4. Approved the 2025 Audit plan.
6	2025.12.22	Board Meeting	【the 16^{th} meeting of the 9^{th} term 】
1. Approved the Business budget of 2026.

104

Item	Date	Board Meetings	Major Resolutions
			2. Approved the amendment to the Internal control system "remuneration cycle".
3. Review the 2025 manager performance bonus determination proposed by the Remuneration Committee.
4. Approved of new capital loans to related parties, Ablerex Latam Corporation and Ablerex Electronics Italy Srl respectively for Nov, 2025.
5. Approved the motion on the application for the renewal of credit limits.

2.3.10 Major Issues of Record or Written Statements Made by Any Director or Supervisor or Dissenting to Important Resolutions Passed by the Board of Directors: As per Page 25.

2.4 Information Regarding the Company's Audit Fee, Replacement and Independence
2.4.1 CPAs Fee
2.4.1.1 Disclosure of audit fees and non-audit service fees paid to the certifying accountant, their firm, and affiliated entities, as well as the nature of non-audit services.

Unit: NT$ in thousand

Accounting Firm	Name of CPA	Period Covered by CPA's Audit	Auditing fees	Non-auditing fees	Total	Remark
PwC	Lin, Se-Kai	2025.1.1~2025.12.31	4,355		4,355
	Lin, Kuan-Hung
	Lin, Se-Kai	2025.1.1~2025.12.31		1,050	1,050	Tax attestation and English report translation fees
	Fan, Xian - Qing	2025.1.1~2025.12.31		650	650	Transfer pricing professional services

Please specify the content of non-audit service fees (e.g., tax attestation services, assurance engagements, or other financial consulting advisory services).

Note: If the Company changed its accountant or accounting firm during the current year, the audit period should be listed separately, the reason for the change should be explained in the remarks column, and information on audit and non-audit fees paid should be disclosed in order. Non-audit fees should be accompanied by a note explaining the service content.

(1). If the auditing fee paid in the year retaining service from another CPA Firm is less than the auditing fee paid in the year before, the amount of auditing fee before and after the change of CPA Firm and the reasons for the said change must be disclosed: None.
(2). If the auditing fee paid in the year retaining service from another CPA Firm is over 10% less than the auditing fee paid in the year before, the amount of auditing fee before and after the change of CPA Firm and the reasons for the said change must be disclosed: None.

2.5 CPA's changing information within 2 years:
2.5.1 Information for changing accountant:

A. About the former accountant

changing date	2025.3.11
Reason and description	Internal rotation of the PwC firm, change the auditing accountant Z.X. Lai
statement for being terminated by principal or accountant or refused to accept the appointment	Party Status		CPA	Principal
	initiative terminating mandate		-NA-	-NA-
	Refuse (or Renew) commission		-NA-	-NA-
Comments and reasons for issuing audit reports other than unqualified opinions within the last two years	-NA-
disagree with the issuer	With		accounting principles or practices
			Disclosures in Financial Reporting
			Check scope or steps
			Others

	W/O	V
	Description
Other matters (Those who should be disclosed in Article 10, Paragraph 6, Item 4 to Item 1, Item 7)	-NA-

B. About Successor CPA

Accounting Firm	PwC
Accountant name	Kuan-Hung Lin
date of appointment	Mar 11, 2025
Pre-appointment accounting treatment or accounting principles for specific transactions and Opinion consultation matters and results that may be issued on financial reports	-NA-
Written opinions of the successor accountants on matters with which the predecessor accountants disagreed	-NA-

C. Reply letter from the former accountant on items 1 and 2-3 of Article 10, subparagraph 6 of this standard: -NA-

2.5.2 The most recent year's certified accountant :

Fiscal Year	Accountant Firm	CPA
2021~2022	PwC	H.T. Chou and Z.X. Lai
2023~2024	PwC	S.K. Lin and Z.X. Lai
2025	PwC	S.K. Lin and K.H. Lin

2.6 The Chairman, General Manager and Financial or Accounting Managers of the Company who had worked for the independent Auditor or the related party in the most recent years: None

2.7 Information on Net Change in Shareholders and Net Change in Shares Pledged by Directors, Department Heads and Shareholders of 10% shareholding or more

2.7.1 Information on Net Change in Shareholding of Directors, Supervisors and Managers and Major Shareholders:

Unit: Share

Title	Name	2025		2026.3.31
		Net Change in Shareholding	Net Change in Share Pledged	Net Change in Shareholding	Net Change in Share Pledged
Director/Chairman (over 10%)	Wen Hsu	0	0	0	0
Director and over10% shareholder	UIS Co., Ltd	-151,000	0	0	0
UIS Co., Ltd-Legal Rep.	L.Y. Pan	-151,000	0	0	0
Director	Y.A. Chen	0	-1,600,000	0	0
Director	J.K. Sung	-8,000	0	0	0
Director	J.H. Ho	0	0	0	0
President	M.Z. Hwang	4,000		3,000	0
V.P. (Administration)	Hank Xiao	0	0	0	0
V.P. (RD)	J.H. Lee	0	0	0	0
Corporate Governance Officer	Damon Chao	-2,000	0	0	0
Manager of Sales Dept I.	Y.Z. Fu	0	0	0	0
Financial Manager	Jeff Lin	0	0	0	0
Accounting deputy Manager	Emma Liao	0	0	0	0

Note: Shareholders holding more than 10% of the company's total shares shall be identified as major shareholders and listed separately.

2.7.2 Shall the counterparty of share change or share pledged be the related party, the name of the counterparty, the relation with the Company, Directors, Supervisors, or the Shareholders of 10% shareholding or more and the shares of changing or pledging shall be disclosed.

A. Shares Trading with Related Parties – None

B. Shares Pledge with Related Parties --

Name (Note 1)	Reason (Note 2)	Change date	Deal relative person	The relationship between the counterparty and the company, directors, supervisors and shareholders holding more than 10 percent of the shares	Share	Shareholding ratio	Pledge ratio
Y.A. Chen	Release of pledged shares	2025.11.25	Hua Nan Bank	None	2,485,763	5.52%	0

Note 1: Names of directors, supervisors, managers and shareholders holding more than 10% of the company's shares.
Note 2: Pledged or redeemed.

2.8 Shareholders who hold the top ten shareholdings, information about each other's relatives within the spouse, second parents, etc.:

2026.3.31 / Unit : share : %

Name	Current Shareholding		Spouse's/minor's Shareholding		Shareholding by Nominee Arrangement		Name and Relationship Between the Company's Top Ten Shareholders, or Spouses or Relatives Within Two Degrees
	Shares	%	Shares	%	Shares	%	Name	Relationship
UIS Co., Ltd. Legal person: H.W. Lee	13,089,502	29.09%	0	0	0	0	H.W. Lee	Chairman
H.W. Lee	167,000	0.37%	0	0	0	0	UIS Co., Ltd.	Representative of a major shareholder
Wen Hsu	9,638,177	21.42%	219,973	0.49%	0	0	S.J. Du	Spouse
Y.A. Chen	2,485,763	5.52%	0	0	0	0	None	None
AES Investment corporation Rep. H.H. Ko	745,000	1.66%	0	0	0	0	None	None
H.H. Ko	205,000	0.46%	0	0	0	0	AES Investment corporation	Representative of a major shareholder
M.H. Liao	665,800	1.48%	31,000	0.07%	0	0	None	None
H.J. Tsai	443,000	0.98%	0	0	0	0	None	None
Citibank Custody - Barclays Capital SBL/PB Investment Account Representative: Ahmed Aftab Noor	374,000	0.83%	0	0	0	0	None	None
Ahmed Aftab Noor	0	0	0	0	0	0	Rep. of The Citibank	Representative of a major shareholder

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| HSBC
Custody of
Arcadian
Emerging
Markets Micro
Capital
Securities -
Rep.: R.M. Chi | 370,000 | 0.82% | 0 | 0 | 0 | 0 | None | None | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| R.M. Chi | 0 | 0 | 0 | 0 | 0 | 0 | Rep. of The HSBC | Representative of a major shareholder | |
| R.L.Yang
Hsieh | 282,000 | 0.63% | 0 | 0 | 0 | 0 | None | None | |
| S.J. Du | 219,973 | 0.49% | 9,638,177 | 21.42% | 0 | 0 | Wen Hsu | Spouse | |

2.9 Number of shares held in the same investee by the Company, its directors, managers, and enterprises directly or indirectly controlled by the Company, with the aggregate shareholding percentage calculated on a consolidated basis:

2025.12.31 Unit: shares/ %

Affiliated Enterprises	Ownership by the Company		Direct or Indirect Ownership by Directors, Supervisors, Managers		Total Ownership
	Shares	%	Shares	%	Shares	%
Ablerex Electronics (Samoa) Co. Ltd	6,635,000	100	-	-	6,635,000	100
Ablerex Corporation	250,000	100	-	-	250,000	100
Ablerex International Corporation Limited	10,000	100	-	-	10,000	100
Ablerex Electronics (S) Pte. Ltd	2,140,763	100	-	-	2,140,763	100
Ablerex Electronics UK Limited	100,000	100	-	-	100,000	100
Wada Denki Co., Ltd.	2,970	99	-	-	2,970	99
Ablerex Electronics Italy S.R.L	100,000	100	-	-	100,000	100
Ablerex Electronics LTD.(Ablerex-GB)	10,000	100	-	-	10,000	100
Ablerex Electronics (Suzhou) Co. Ltd	5,460,000	100	-	-	5,460,000	100
Ablerex Electronics (Beijing) Co. Ltd	1,175,000	100	-	-	1,175,000	100
Ablerex Overseas Corporation Limited	6,635,000	100	-	-	6,635,000	100
Ablerex Electronics (Thailand) Co., Ltd.	20,000	100	-	-	20,000	100
Ablerex Latam Corporation	3,650	86			3,650	86

Note: All the above company is long-term investment at equity.

III. Capital Overview

3.1 Capital and Shares

3.1.1 History of capitalization

A. Capital formation

Month/Year	Par value (NT$)	Authorized shares		Issued shares		Remarks
		Shares (1,000)	Amount ($1,000)	Shares (1,000)	Amount ($1,000)	Source of capital	Non-monetary Capital	other
May, 1998	10	20,000,000	200,000,000	20,000,000	200,000,000	UIS Abler established and paid in capital	N/A	N/A
Aug, 2001	10	14,080,000	140,800,000	14,080,000	140,800,000	NT$ 59,200,000 capital reduction to offset company losses	N/A	N/A
May, 2002	10	25,680,000	256,800,000	25,680,000	256,800,000	UIS Abler issued NT$116,000,000 common stock to merge PEC	N/A	N/A
July, 2004	10	45,000,000	450,000,000	31,000,000	310,000,000	NT$53,200,000 common stock issued by cash	N/A	N/A
June, 2007	13	80,000,000	800,000,000	38,000,000	380,000,000	NT$56,000,000 common stock issued by cash and NT$14,000,000 issued through capitalization of earnings	N/A	N/A
June, 2009	10	80,000,000	800,000,000	40,609,666	406,096,660	NT$21,660,000 new share issued through capitalization of earnings and NT$4,436,660 through employee bonus	N/A	N/A
Sept, 2010	185	80,000,000	800,000,000	45,000,000	450,000,000	NT$43,903,340 common stock issued by cash	N/A	N/A
July, 2023	10	200,000,000	2,000,000,000	45,000,000	450,000,000	Increase in authorized capital	N/A	N/A

B. Type of shares
Mar. 31, 2026 / Unit: share

Type of shares	Authorized Shares			Remarks
	Available for trading on the TSE	Unissued shares	Total
Order common stock	45,000,000	155,000,000	200,000,000

Note: Listed on Tpex on Sep 9, 2010.
C. Self-registration system: None

3.1.2 List of Major Shareholders: Shareholders who hold over 5% of Ablerex's stock or the Top 10 shareholders and their holding amount and percentage.

2026.3.31 / Unit: Share, %

ShareShareholders’ Name	Shares	Holding Percentage (%)
UIS Co., Ltd. (Rep: H.W. Lee)	13,089,502	29.09%
H.W. Lee	167,000	0.37%
Wen Hsu	9,638,177	21.42%
Y.A. Chen	2,485,763	5.52%
AES Investment corporation
(Rep.: H.H. Ko)	745,000	1.66%
H.H. Ko	205,000	0.46%
M.H. Liao	665,800	1.48%
H.J. Tsai	443,000	0.98%
Citibank Custody - Barclays
Capital SBL/PB Investment
Account Representative: Ahmed
Aftab Noor	374,000	0.83%
Ahmed Aftab Noor	0	0.00%
HSBC Custody of Arcadian
Emerging Markets Micro Capital
Securities -Rep.: R.M. Chi	370,000	0.82%
R.M. Chi	0	0.00%
R.L.Yang Shei	282,000	0.63%
S.J. Du	219,973	0.49%

3.1.3 Dividend Policy and Implementation Status

A. Dividend Policy stated in the Articles of Incorporation:

(1) As regulated in Article 26 of Articles of Incorporation in operation, when the annual final accounting statement shows earnings, the Company shall contribute tax and compensate the accumulated loss of previous years and then contribute 10% of earnings as legal reserve unless the accumulated legal reserve reached the amount of the capital of the Company. Secondly, the Company shall contribute to special reserve based on the laws or regulations of administrations, together with accumulated undistributed earnings as distributable earnings. If earnings remain, the Company shall retain part of earning before Board of Directors make a distribution proposal according to the operation conditions and submit the proposal to shareholders’ meeting for resolution.

As regulated in Article 25-1 of Articles of Incorporation in operation, If the Company have surplus earnings after close of fiscal year, shall be according to the performance of the year to set 6 to 10 percent of its reserves as employees’ compensation, and not more than 2 percent of it as directors’ and supervisors’ remuneration. At least 30% of the total employee compensation shall be allocated to frontline employees. However, the company’s accumulated losses shall have been covered. The directors’ remuneration must be paid in cash. The Company may, by a resolution adopted by a majority vote at a meeting of board of directors attended by two-thirds of the total number of directors, have the profit distributable as employees’ compensation in the preceding two paragraphs distributed in the form of shares or in cash; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements.

Article 26-1 of the Company’s Articles of Incorporation stipulates that the distribution of earnings may be made in the form of cash or stock dividends. The type and ratio of such earnings distribution shall be proposed by the Board of Directors based on the Company’s future capital requirements and long-term operational planning, taking into account the then-current operational conditions, balancing shareholders’ interests, dividend policy considerations, and capital planning needs. The proposed distribution shall be submitted to the Shareholders’ Meeting for resolution and adjustment.

The Company authorizes the Board of Directors, by a resolution passed by a majority of the directors present at a meeting attended by two-thirds or more of the directors, to distribute all or part of the distributable earnings in the form of cash dividends, and such distribution shall be reported to the Shareholders’ Meeting. In the event that the Company has no distributable earnings for the current year, or although there are earnings, the amount is significantly lower than the earnings actually distributed in the previous year, or based on considerations of the Company’s financial, business, and operational factors, all or part of the legal reserve and capital reserve may

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be distributed in accordance with laws, regulations, or directives from the competent authority.

The board of directors of the company plans to formulate a profit distribution plan. In principle, at least 30% of the dividends will be distributed to shareholders, of which cash dividends should not be less than 30%.

(2) Proposed Distribution of Dividend for this meeting of shareholders
Unit : NT$

Items	Amount	Description
2025 Net income	180,903,264
Add/Less:2025 Net income Retain earnings adjustments	1,305,336	Actuarial differences for Labor Retirement Reserve Fund (The Old Fund)
2025 Net income Net profit subtotal	182,208,600
Less: provision of legal reserve (10%)	-18,220,860
Less: Special Reserve	-28,039,805	Other equity – Cumulative translation adjustment for foreign operations
Add: 2024 undistributed profit	113,580,863
2025 Net income Distributable profit	249,528,798
Less: cash dividend to shareholders	146,250,000	NTD 3.25 cash dividend per share
Undistributed earnings	103,278,798

Note: This proposal of Profit distribution has been approved by Board of Directors' resolution on Mar 11, 2026.

(3) Expectation of significant change on dividend policies: None.

3.1.4 Impact of the proposed stock dividend in shareholders meeting on business performances and EPS:

Board of Directors decided to distribute cash dividend from profit in 2025 and no stock dividend. The Company did not have financial forecast, so this clause is not applicable.

3.1.5 Compensation to employees, directors and supervisors

Information of dividend to employee and remuneration to directors and supervisors was stated in the Articles of Incorporation:

As stated in Article 25-1 of the Articles of Incorporation, the Company shall contribute not less than 6% of its annual earning as employees' compensation and not more than the 2% as remuneration to directors and supervisors. But the Company shall compensate its accumulated losses first.

In addition to the employees of the Company, the distribution of employees' bonus could include the employees of subsidiaries who meet certain conditions.

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Accounting process applied to the estimation base of dividend to employees and remuneration to Directors, Supervisors and employees, outstanding shares computing base for stock dividend distribution and the spread between amounts distributed and estimated:

The estimated amount of employee remuneration for the fiscal year 2025 is NT$14,652 thousand, and the estimated amount of director remuneration is NT$4,603.5 thousand. These amounts are based on the Company's profitability for the year, with employee remuneration and director remuneration estimated at 6.03% and 1.97%, respectively. Should the actual distributed amounts, as subsequently determined by a special resolution of the Board of Directors, differ from these estimated amounts, the difference will be treated as a change in accounting estimate.

Dividend distribution of employees resolved by the board of directors

a. Distribution amount of cash dividend and stock dividend to employees and remuneration to directors and supervisors:

The company's board of directors has resolved to distribute employee compensation of NT$14,652 and director compensation of NT$4,603.5 in cash for 2025. The distribution amounts mentioned above are consistent with the estimated amounts recorded in the financial statements for the year.

b. Proposed stock dividend to employees and its ratio to total net income of individual financial report and to total employees' remuneration:

Board of Directors has approved to distribute employees' compensation by cash and no stock dividend is distributed to employees, so the ratio of stock dividend distributed to employees to total net income of individual financial report and to total employees' remuneration is zero.

Actual distribution of employees' bonus and remuneration of Directors and Supervisors for previous year:

The company's employee remuneration, directors' and supervisors' remuneration estimate for 2024 and the board of directors' distribution resolution are as follows. The actual distribution amount is consistent with the estimated amount on the account for 2024.

2024 Earnings Distribution

Item	Shareholders' Meeting approved on Dec. 31, 2024	Board of Directors approved on Mar. 11, 2025	Difference	Cause of Difference
Remuneration of Directors and Supervisors	$2,405	$2,405	$0	Consistent
Employees' cash compensation	$7,481	$7,481	$0	Consistent

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3.1.6 Buyback of Treasury Stock: None

3.2 Bonds: None
3.3 Preferred Shares: None
3.4 Global Depository Receipts: None
3.5 Employee Stock Options: None
3.6 Restricted Employee Shares: None
3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions: None
3.8 Financing Plans and Implementation: None

IV. Operational Highlights

4.1 Business Activities

4.1.1 Business Scope

(1) Main areas of business operations

(1) Manufacturing and distribution of uninterruptible power system (UPS).
(2) Manufacturing and distribution of active power filter.
(3) Manufacturing and distribution of photovoltaic power inverter system.
(4) Agent of large capacity UPS through project distribution and services.
(5) Offering maintenance and technical services.

(2) Revenue distribution

Unit: NT$ thousands; %

Year Major Divisions	2024		2025
	Total Sales	Total Sales	Total Sales	(%) of Total Sales
UPS	1,144,865	37.86%	1,124,609	33.52%
Project	1,074,473	35.53%	1,437,954	42.86%
Service	153,033	5.06%	155,717	4.64%
APF	82,143	2.72%	57,586	1.72%
PV inverter	49,950	1.65%	44,908	1.34%
Others	519,670	17.18%	534,510	15.92%
Total	3,024,134	100.00%	3,355,284	100.00%

(3) Main Products and Services

(1) Independent R&D, manufacturing and distribution of single-phase uninterruptible power system (commonly known as single-phase UPS or small UPS) at 20KVA (and below).
(2) Independent R&D, manufacturing and distribution of three-phase uninterruptible power system (commonly known as three-phase UPS or mid/large UPS) at 10KVA (and above).
(3) Agent distribution of Europe's SOCOMEC three-phase uninterruptible power system (commonly known as three-phase UPS or mid/large UPS) at 15KVA (and above).
(4) Independent R&D, manufacturing and distribution of power quality improvement equipment - active power filter (abbreviated as APF, also known as active power harmonics conditioner).
(5) Independent R&D, manufacturing and distribution of green energy system photovoltaic inverter (PV Inverter), also known as Solar Inverter.
(6) Design and manufacturing services for OEM/ODM/OIM (Original Innovative Management) models.
(7) Maintenance and technical services for the products.

(4) New Products Planned for Development

(1) High efficiency, miniaturization, lightweight, intelligent, modular, networked and distributed and other multi-functional UPS new technology development.
(2) Mid-sized and large three-phase high frequency parallel UPS
(3) High-precision Power quality management technology
(4) Hybrid system PV Inverter

(5) Power management/monitoring software technology
(6) Smart Grids application related Product
(7) Large-capacity energy storage ESS

4.1.2 Industry Overview

(1) Macroeconomic Environment

① Uninterruptible Power Supply (UPS)

With the rapid development of high-tech electronic products in recent years, the operation of procedure-control workstations computer and precision instruments at high-tech production facilities relies heavily on quality and reliable power supply to maintain normal operation. Poor power quality could result in erroneous action for precision equipment or even disruption of the manufacturing process, leading to severe losses. Common problems relating to power quality include voltage distortion, overvoltage, under voltage, power disruption and so forth. And as such, ensuring high quality and reliable supply of power has become a vital issue for the power company and all users. In order to prevent issues of power disruption or unstable voltage, most users would incorporate uninterruptible power supply (UPS) systems to ensure power quality and in turn enhance the reliability of precision equipment operation.

UPS systems can generally be separated into three major categories: Off-line, On-line and Line interactive. These three types of UPS systems each has their own strengths, weaknesses and suitable applications. Common Off-line UPS are typically single-phase low-capacity products with relatively few functions, therefore are available at cheaper price points. Such products are generally used for PCs and other peripheral equipment. Designed with hot standby functionality, when AC mains supply is normal, the switch between the UPS and load would be activated to prevent the circulation of electrical current between the AC mains supply and the UPS system. However, should the main supply fail, the load would be exposed to a few milliseconds of power failure due to the transition of the switch. This would in turn lower the operating efficacy of the load. On-line UPS system operates by converting the AC power from the AC mains supply into DC power through a DC/AC inverter. A percentage of the DC power is stored into the battery charger while a part of the DC power is sent through a DC/AC inverter to be converted to steady, reliable AC power to be fed to the load. When in operation, an On-line UPS system features a two-stage power inverter between the load and AC mains supply. And as such, the quality of power from the load would not be susceptible to the influence of AC mains supply, making the On-line UPS the best power protection solution for the load equipment. This explains why On-line UPS systems are frequently deployed for instruments and equipment that require power of better quality. However, since the power carried by the load on such UPS systems requires conversion through a two-stage inverter, the circuitry design would be more sophisticated and have lower efficacy. As for Line interactive UPS systems, such systems feature paralleled operation of the power inverter and AC mains supply as their technological basis, with the power inverter responsible for charging and discharging the battery at the same time. In other words, when the AC mains supply is working normally,

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its power will be directly sent to the load and charge the battery through the power inverter. When the AC mains supply fails, the stored power on the battery would be sent to the load through the power inverter. Such UPS systems feature relatively simpler system architecture and are relatively cheaper in cost. And since the load is directly powered from the AC mains supply when it is working normally, there will be no recurrent energy loss. However, the issue of conversion time remains.

In recent years, to improve the efficiency of On-line UPS systems, in addition to adopting three-stage power inverters to handle the task of conversion, the system also features a new economic operation mode. In this mode, the DC/AC inverter of the UPS system would be set to hot standby, with the AC mains supply providing power directly to the load.

Table 1 Strengths and Weaknesses of the three UPS System Architectures

Type	Strengths	Weaknesses
Off-Line	1. Simple circuitry 2. Higher power efficiency 3. Low cost, compact form factor	1. Brief power disruption (~1ms) 2. Lacks voltage stabilization function; power quality is susceptible to the effects of AC mains supply
On-Line	1. No brief power disruption 2. Improves upon literally all existing issues of power quality with AC mains supply	1. Higher cost 2. Sophisticated control circuitry 3. Inferior efficiency
Line Interactive	1. Simple circuitry 2. Low cost	1. Brief power disruption 2. Sophisticated control mechanism

A. Off-line

The architecture of an off-line UPS system primarily features an AC/DC charger, a battery and a DC/AC inverter. When the line is normal, the required power comes directly from AC mains supply while a portion of the power goes through the AC/DC battery charger to charge the battery. Since the inverter is running without load, the quality of the power of load is determined directly by the AC mains supply. When the line fails, the inverter will convert the power from the battery to AC current and keep connected equipment running. Typical off-line UPS systems only provide backup power but do not improve power quality. In addition, when the line fails, the system will have a momentary lapse of switch transition. And as such, off-line UPS systems are not truly "uninterruptible" in the truest sense of the term due to its "instantaneous disruption". When the voltage falls below the permitted value, the system will automatically switch over to providing power from the battery, enabling the user to continue with equipment operation without noticing the disruption. The reaction time of this "instantaneous disruption" before the battery kicks in is under 0.1 seconds. Additionally, off-line UPS systems provide square waves and are therefore suited only for PCs. And as such, the product is mostly used in smaller systems or for equipment that are less important.

Off-line UPS System

B. On-line

On top of having a more sophisticated architecture compared to off-line UPS, on-line UPS systems are most distinctively different due to their means of power control. When the line is normal, the power will go through the AC/DC rectifier, with a portion of the DC current going to the battery charger to charge the battery while the other portion is converted to AC current to power the connected equipment. When the AC mains supply fails, the inverter will continue to supply power, which will come from the battery. This means that there will be no disruption of power and since the connected equipment is isolated from the AC mains supply by the on-line UPS system, power quality is essentially controlled by the UPS. This makes it possible to resolve issues of over/under voltage, surge, electromagnetic interference, or frequency drift. Not only that, on-line UPS has sine wave output, making it suitable for all equipment. As such, on-line UPS systems are typically used for precision equipment that require power of higher quality.

C. Line-interactive

Line-interactive UPS systems operate on similar principles as off-line UPS systems, with the most distinctive feature of having a multi-tap variable-voltage autotransformer (i.e., operating as both an AC/DC inverter and a rectifier). In addition to charging the battery during normal operation, the autotransformer will automatically function as an inverter when AC mains supply fails to deliver power from the battery to the connected equipment. Since the product design did not include a

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bypass switch between the AC mains supply and the load, such system will still experience "instantaneous disruption" in the event of a power failure (with an extremely short response time between the disruption to battery power supply under 0.04 seconds). As line-interactive UPS systems output sine waves, they can work with more equipment compared to off-line UPS systems. With functionalities falling between off-line and on-line UPS systems, line-interactive UPS systems are more suited for the needs of small enterprises or website servers.

Line-Interactive UPS System

Within their given electricity storage capacity, UPS is designed with power converter interface to supply the required power in the event of anomalies with the AC mains supply. And as such, UPS systems have been extensively used as the backup power solution for information, communication and precision instruments to prevent sudden power failure from halting equipment operation, thereby improving the reliability of equipment operation. Therefore, such products have definitive values in the market. Furthermore, with more and more electronic equipment and applications emerging in consumers' lives (such as cable TV, broadband internet access, wireless communication base stations, surveillance systems, security systems and telematics), the UPS market that once did not exist, is now seeing gradual growth in demand. One can anticipate significant potential for growth for the UPS market in the near future. Ablerex has been specializing in the development and manufacturing of UPS ever since its foundation, with a focus centered on the development of high-end on-line UPS that requires extensive technical know-how and great effort on continual improvement on the functionalities of our line-interactive UPS. We strive to satisfy our customers' needs by achieving maximum performance with lower costs. This would prevent the company from engaging in a price war with other manufacturers in the low-end offline UPS product market.

② Active Power Filter (APF)

Due to the rapid development of power semiconductor component manufacturing technology and power electronic applications, power electronic equipment has been extensively used in different domains. Nevertheless, power electronic equipment has the inherent flaws of high input current harmonics and low input power factor, with harmonic currents being responsible for the deterioration of power quality. In recent years, precision equipment has been extensively used in different industries and such equipment has relatively high requirement for power quality. Consequently, the power company had to establish harmonics regulation standards to limit the amount of harmonic current

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generated by users to maintain the quality of power from the electricity distribution system.

Traditionally, passive power filters are designed with passive components such as inductors and capacitors. Due to their low-price points, such products have been extensively used to mitigate harmonic currents. However, passive power filters have the following shortcomings: (1) Change of impedance in a power system could severely affect the characteristics of the filter. (2) Parallel resonance could occur between the power reactor and passive power filter and consequently amplifying the load's harmonic current, resulting in even greater harmonic current distortion. (3) Serial resonance could occur between the power reactor and passive power filter, which may in turn cause harmonic currents from other non-linear load to enter the passive power filter, resulting in an overload of the passive power filter. (4) Filter parameters are difficult to design due to the changes in system status or deviations of filter capacitance or inductance. (5) Filter characteristics cannot be fixed due to changes in load. Given these shortcomings, active power filter had been developed in recent years as an alternative. An active power filter features a power transducer built with power semiconductor switching components such as GTO, IGBT, or power transistors. Active power filter not only solves the problem of harmonics but also compensates virtual work to convert the input current of AC mains supply to pure sine waves of the same phase as the AC mains supply voltage. An active power filter comprises three components: a converter, an energy storage component and a control circuitry. In the past, passive power filters have been used to mitigate harmonics, but the product still has notable drawbacks that current technologies cannot overcome. In contrast, active power filter was developed in recent years due to the advancement in power electronic technologies as to suppress harmonics while regulating harmonics and improving power factor.

Presently, there are three types of filters that are designed to suppress harmonics: 1. Traditional passive power filter (PPF), 2. Active power filters (APF) and 3. Hybrid power filters (HPF). The following section will provide brief descriptions for each type of power filter.

A. Passive Power Filter

Traditionally, passive power filter (PPF) comprises passive components including capacitors, reactors and resistors. However, due to the characteristics of specific passive components, PPFs do suffer from inherent drawbacks. For example, the result of harmonic absorption of a PPF may change along with any change in the system's impedance. In addition, when unknown external harmonic current enters the system or any change of the systems' load/additional harmonic load could cause the existing PPF to overload or resonate, thereby leading to accidents. In addition, power capacitors and inductors in PPFs have error margins. Increases in usage duration and temperature changes could cause the values of the power capacitor or inductor to shift and thereby impede its filtering capabilities. Not only those, but the passive components are also heavy and bulky, making PPFs requiring more physical space.

B. Active Power Filter

Active power filter (APF) is an AC/DC conversion equipment that applies relevant power electronic technologies. Depending on the load demand, APF would create a harmonic current that is of the opposite phase of that from the load and send it to the power system. The harmonic currents would cancel each other and achieve the filtering of harmonics. APF is therefore used to resolve destructive issues caused by harmonic currents, such as transformer overheat, voltage distortion and machine failure. However, power electronic components of high power are restricted by their switching frequencies

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and this result in specific limit of power capacity for APF.

C. Hybrid Power Filter

As both passive and active power filters have their limitations that are hard to overcome, products that combine features of both active and passive power filters were developed as a result. Such products are known as hybrid power filters (HPF). HPF incorporates a power transducer to improve upon the characteristics of PPF while resolving the issue of resonance. Compared to APFs, PPFs make it possible to reduce the capacity of the power transducer, rendering its application on larger capacity filter systems.

The exclusive technology we have developed for our APF feature immediate response control, which enables real-time compensation at any point during each current cycle to create a harmonic current that is the opposite of that of the load and send it to the power system. This harmonic current would cancel the harmonic current at the load, thus resulting in a current wave that is close to sine at the power system and thereby achieving harmonic filtering. Such rapid response capabilities make our APF ideal for equipment with substantial load changes, such as pumps used to maintain water or barometric pressure, high-end passenger/cargo elevators and other high-tech industries. Presently, the world's APF market is dominated by US and Japanese manufacturers including FUJI, TOSHIBA, MERLIN, ABB and so forth, with no other leading manufacturers in Taiwan. With our immediate response control technology, our APFs have outstanding transient response capabilities that enable immediate compensation at any point during each current cycle, unlike other products designed for Fast Fourier Transform (FFT) that only output response after the load has changed and delayed for two cycles. In addition to breaking through the existing limits of current product architecture and technological deployment, this technology is also compliant with pertinent international safety regulations, thereby allowing the company to distribute the products more extensively. We have essentially debunked the misconception that conventional high-spec products will inevitably fail in their safety regulation compliance and our APFs have proven to have a great competitive edge in the domestic market. Coupled with the latest 150A European/US standard series we have developed in 2012, our APFs are expected to bring positive boost to the company's operational growth soon.

③ PV Inverter

A. Status of the global solar power market:

Compared to 2011, the demand for PV inverter in Europe has fallen significantly. But thanks to the explosive growth of the Chinese market, Ablerex managed to achieve a total of 31 GW in sales in 2012, translating to a growth margin of 5%. Nevertheless, the drastic decline in market prices has resulted in a decrease in real revenue for manufacturers.

According to IMS Research's prediction, the market for PV inverter will continue to grow, with more noticeable growth in demand in 2017. The demands for small business building PV system (usually between 10~100kW) and PV stations (typical installation of 500kW or higher) are expected to grow more significantly while the demand for residential PV system will be less apparent.

It is estimated that approximately 60% of the PV system installation in the future will take place in Asia, mainly China and the majority of them would be PV stations. As

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for residential PV systems, Japan will be the only market that may promise some potential.

B. Types of solar PV systems

1. Stand-Alone System

As its name implies, a stand-alone PV system can generate the power that is required without having to be connected to the power distribution grid of the power company. Since the system will not be able to generate electricity in the absence of sunlight at night or in poor weather, stand-alone systems have incorporated battery banks that stores power when there is ample sunlight to ensure stable supply of power. Stand-alone systems are primarily installed in regions where the power grid is hard or unable to reach (i.e., remotely populated mountainous regions or offshore islands). Such systems are also commonly installed to function as small power systems for road displays, billboards, road lights and other illumination equipment.

Architecture of Stand-Alone System

2. Grid-Connected System

A Grid-connected system generates power in a parallel connection with the city power grid. The system would generate power for the load and the power company will cover the insufficient part of power. With such system, the city power grid can be perceived as an infinitely large and everlasting free battery bank.

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Architecture of Grid-Connected System

3. Hybrid System

A PV hybrid system operates in conjunction with the city power grid and a battery bank. During normal operation, the system is connected to the city power grid, responsible for supply power to the load and charging the battery bank and at night, power supplied by the grid will take over. In the event of disasters such as typhoons or torrential rains that resulted in a power outage, the battery bank would still have adequate power in reserve so that relevant rescue operations can take place before the city power grid is restored.

Architecture of Hybrid System

Current Status and Future Development of PV

The following section is a summary of Ablerex's primary application and breakthrough in the area of PV inverter development:

(1) Anti-islanding technologies

Islanding refers to the condition in which a PV inverter continues to power a location when the electrical grid power has been disrupted. When this happens, it

would result in an isolated power generation system that may cause partial power instability for users. Not only that, as the PV inverter continues to deliver power, the connected electrical grid (PV and city power grid connected in serial or parallel connection) may remain powered. This can be dangerous to the utility workers as they run the risk of electrocution. And as such, in the event of a power failure, PV inverters must be designed to immediately disconnected from the grid so that even if they remain operational and deliver power, the city power grid will stay unpowered to protect relevant electronic systems and the safety of operators. Presently, the islanding detection feature offered by typical products involves passive detection, which suffers from the shortcomings of poor sensitivity and interference. Due to these issues, such products offer very limited stability. Through the integration of hardware and software, Ablerex have achieved breakthrough of existing technological bottleneck with solutions that integrate the strengths of both active and passive detection through DSP control algorithm.

(2) Maximum Power Point Tracking

Output power of solar panels are affected by a few external factors, such as the intensity of sunlight, temperature, component aging, PV material and so forth. To ensure optimal performance of the PV cell, PV inverter must be subjected to appropriate control so that it can ensure maximum power output from the PV cell regardless of the operating environments. Such control method is known as maximum power point tracking.

(3) Grid Connection Control Technology

As solar PV generation system takes the energy generated by the solar panels and sends it directly to an electrical grid through a parallel circuit, it is imperative that relevant protective measures be thoroughly developed. Specific technical and legal issues (such as power system stability) that may arise from the operation of sending power to an electrical grid must be addressed. Designing a multi-functional solar PV system involves power conversions of different functions. Naturally, the design process has to take the issue of corresponding controls into consideration. Therefore, we have taken advantage of the high computing power of digital signal processing (DSP) as the solution for PV-inverter control.

Residential Energy Storage System

As sources of intermittent energy, solar energy is not continuously available and can be easily affected by numerous environmental factors. Thus, the output power of solar energy can be described as unstable and unpredictable power source. When a large quantity of grid connected PV systems are installed on the electrical grid, the intermittency characteristics of solar energy will have given a serious impact on the electrical grid such as the fluctuation of voltage and frequency, safety, stability and electrical power quality. Therefore, the development of grid connected PV system has been limited. To deduct intermittency characteristics of solar energy cause impact on the power grid, the transmittance of solar PV system must be developed. At the same time, the battery storage system can solve the fluctuation of voltage and poor electrical power quality caused by over capacities of grid connected renewable energy system. Since the Smart Grid was established, liberalization of the electricity market has rapidly accelerated the business from various sectors have been selling electricity by time-of-use pricing. Users allow to purchase the lowest price of electricity at the off-peak period and storage into the battery bank. and discharge the saved energy at the peak period, which the electricity price is extremely high, to avoid the consumption of electricity or even

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sell back to the utility. Other than functions mentioned above, if the utility grid is ordinary condition, users can operate charging/ discharging the power from our battery module during the night. When the utility grid has unpredictable problem occurred, our system would disconnect with the utility automatically and continuously provide power to loads by using storage energy.

(2) Relationship with Up-, Middle- and Downstream Companies

① UPS manufacturing process

Upstream		Mid-stream	Downstream
Raw material		Manufacturing	End user
Wire material	PCB	UPS Power Provider	Medical equipment
Packing material	IGBT	Manufacturer	Public infrastructure
Cabinet			Aviation Equipment
Battery			Military equipment
Transformer			Business entities
Transistor			Telecommunication
Capacitor			equipment
Software design			PC equipment
			Household appliances
			Other

Ablerex specializes in the design and manufacturing of UPS products. Our upstream vendors are primarily suppliers of relevant components (transformer, cabinet, wire material, capacitor, PCB, etc), battery supplier and software developer. Distributed through our network channels, our products are sold to end users in different sectors, including medical care, aeronautics, military equipment, finance, security, nuclear power, petrochemical, telecommunication, PC equipment and so forth.

With the boisterous growth of the Internet and ICT sectors, the requirements for power supply quality have been steadily increasing. This has attracted more enterprises to adopt UPS solutions to protect their PC equipment, thereby propelling the demand for UPS. Consequently, such trends promise substantial potential for our business growth in the future.

② APF manufacturing process

Upstream		Mid-stream	Downstream
Raw material		Manufacturing	End user
Wire material	PCB	APF manufacturer	Steel plant/machinery
Packing material	IGBT		factory
Cabinet			Telecommunication
Battery			equipment
Transformer			Large industrial
Transistor			equipment
Capacitor			Taipower distribution
Software design			gridApplications where harmonics improvement are required
			Applications where harmonics improvement are required
			Other

Ablerex specializes in the design and manufacturing of APF. Our upstream vendors are primarily suppliers of relevant components (transformer, cabinet, wire material, capacitor, PCB and etc), battery supplier and software developer. Distributed through our network channels, our products are sold to end users in different sectors, including steel machinery factories, telecommunication, large industrial equipment, Taipower distribution grid and applications where harmonics improvement are required.

With various sectors demanding higher power quality, more and more businesses found themselves needing APF to improve power quality and reduce power loss. Due to the technical threshold required for the product, there are few local or foreign manufacturers for the product. And as such, our APF are rather competitive in the market and it is one of our key products that we promote aggressively.

③ Solar PV inverter manufacturing process

Upstream	Mid-stream	Downstream
Raw material	Manufacturing	End user
Silicon material	PV Inverter	Construction industry
Silicon wafer	System	Telecommunication
Solar cell cutting		industry
Solar cell		Public infrastructure
Software design		high-tech fabrication plant
		PC equipment
		Household power supply
		Other

In the solar PV industry, Ablerex assumes the role of a designer and manufacturer of PV inverter in system and inverter. Distributed through our network channels, our products are sold to end users in different sectors for system integration, including construction industry, telecommunication industry, public infrastructure, high-tech fabrication plants and so forth.

The solar PV industry promises vast business opportunities in the foreseeable future. Due to the high technological threshold, we have few domestic competitors. Our PV inverter have definitive competitive advantages in terms of quality and pricing and Ablerex has in fact become a global leading manufacturer in this area and a designated ODM partner for several major brands around the world. PV inverter has been the product that has generated substantial revenues for Ablerex.

④ Residential ESS manufacturing process

Upstream	Mid-stream	Downstream
Raw material	Manufacturing	End user
Silicon material	Residential Energy	Construction industry
Silicon wafer	Storage System	Telecommunication industry
Solar cell cutting		Public infrastructure
Solar cell		High-tech fabrication plant
Software design		PC equipment
Battery cell		Household power supply
		Other

In the Energy Storage industry, Ablerex specializes in the area of system and

inverter technologies and assumes the role of a designer and manufacturer of inverter for ESS. Distributed through our network channels, our products are sold to end users in different sectors for system integration, including construction industry, telecommunication industry, public infrastructure, high-tech fabrication plants and so on.

Energy Storage industry promises vast business opportunities in the foreseeable future. Due to the high technological threshold, there are only few competitors seen in the domestic market. Our inverter for ESS definitely have competitive advantages in quality and pricing of the product. In fact, Ablerex has become a leading manufacturer in domestic industry and has been designated as an ODM partner by several major domestic companies. Our ESS has already brought substantial revenues for Ablerex.

(3) Product Trends

① For UPS

A. Trend for modular design to prevent over allocation

Modular UPS comprises multiple modules to achieve easy scalability. One of the issues with traditional UPS is the over allocation of power system. For example, when a user's actual power load is at 12KVA, he would end up purchasing a traditional UPS at 20KVA to save himself from the hassle of expansion in the future. This would result in an over allocation of the system, which a modular UPS would be able to overcome.

B. Diversification of product design and electronic consumption

In the future, UPS systems will continue towards the path of becoming more compact, lightweight, high efficiency and low noise. With these characteristics, UPS systems will gradually shift from large server rooms and find a place in normal office space. And as such, we should dedicate more attention to exterior design and usability to deliver a more pleasant user experience.

C. Heading towards intelligent and network development

With constant innovations in technology today, users have become accustomed to expecting more from UPS products in terms of their quality and functionality. Traditional analog power control UPS has been ousted by full digital control, which enables the user to schedule and control specific machine parameters through the CPU of the UPS, which can now be simultaneously connected to multiple PCs. Not only that, but the user can also take advantage of its communication interface and PC, along with smart monitoring software and network protocol to manage and analyze his PC and UPS system locally or even remotely with greater convenience and efficiency.

D. High reliability and safety

The development UPS systems will be steered towards higher reliability and safety

(a) Automatic detection: Upon start-up, the UPS will perform a check on all component (inverter, battery and so forth) load to detect potential issues.

(b) Self-protection: Through designs of self-protection, the UPS system will automatically shut down in the event of UPS overload, short circuit or overheat to prevent other hardware damages that might otherwise have been caused by UPS failure.

② APF

Harmonics suppression has always been a vital issue when it comes to power quality improvement. Following the rapid growth of non-linear load that has resulted in deteriorating power quality, the power company had no alternatives but to establish harmonics control standards in order to limit the number of harmonics generated by users

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so as to maintain the quality of power for the whole system. Therefore, in addition to the development of high power APFs, the product will also have multiple functions such as virtual work compensation and voltage suppression. At present, APFs are more expensive than PPFs and the discrepancy is even greater when the load exceeds 500kW, at which point APF becomes no longer economical. And as such, hybrid filters have been created with an architecture that combines the advantages of both the active and passive types. In the future, hybrid power filters will become a trend in the domain of harmonics improvement technology.

③ PV Inverter

In addition, towards high power development for PV inverters, it would be viable to pursue other alternative energy development such as wind power generation to expand the market further. In 2008, Ablerex has obtained the Intertek GS certificate – the first ever issued in Taiwan. Not only that, the company has received certifications from nations including Germany, Spain, France, Italy, Belgium, England, USA and Japan. The company shall continue to stay abreast with the latest market trends and submit more applications to other countries and this will be beneficial to the expansion of the PV inverter market in the future.

④ Residential Energy Storage System

Residential Energy Storage Systems (ESS) are expected to develop toward higher power capacities and expand into commercial applications. Additionally, ESS can help address the inherent limitations of other alternative energy sources, such as wind and solar power, thereby supporting broader market expansion. Since 2016, the Company has successively applied for certifications in countries such as Germany, Australia, and Japan, which will be beneficial for the future growth of its ESS business in these markets.

(4) Product Competition

Presently, our main product lines include UPS, APF and PV inverter. Their characteristics and whether they are replaceable will be covered as follows:

① UPS

As its name implies, an uninterruptible power supply (UPS) functions by delivering power to connected equipment in the place of AC mains supply during a power outage, similar to way emergency lighting works. However, an UPS features more sophisticated design that dramatically reduce the switching duration from AC mains and battery/inverter to make up for the shortcoming of significantly longer power outage duration with typical fuel-powered generators or other emergency power source, without creating the issues of noise and air pollution that fuel-powered generators have. Unless conventional power generators achieve significant improvement in their speed of power supply while minimizing environmental pollution, they will not be able to fully replace UPS.

② APF

Power filters are equipment primarily used to improve power quality and suppress harmonics. Presently, such products fall under three categories: active, passive and hybrid. Each has its distinctive advantages and weaknesses. At present, the development of power filter is headed for higher power and multi-functionality designs. Barring the invention of new harmonic suppression equipment in the future, there are no existing products that could replace APFs.

③ PV Inverter

PV inverter is primarily used to convert the AC current stored in solar panels to DC power for direct usage and connection to the city power grid. Barring the invention of new conversion equipment or new solar cells that could convert DC current to AC current

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by themselves, there are no existing products that could replace PV inverters.

④ Residential Energy Storage System

ESS is mainly used to convert the AC current stored in solar panels to DC power or to save the generated power in the battery bank for direct usage and connection to the power grid. Unless the invention of conversion equipment or new solar cells that could convert DC current by itself, otherwise, there are no other alternative products.

4.1.3 Research and Development

(1) Technical level and R&D of our business

Right from the initiation of the company, Ablerex has established its R&D unit, which focused on the research and development of small UPS. With the development of new products and technologies, the R&D unit has also expanded in scale. At present, the R&D Department can be separated into smaller units based on their respective product lines, including Single-phase UPS, Three-phase UPS and E.P. In addition, sections such as the Mechanical structure, technical support, Software, Process design, safety, Layout, PJM and Technical research have also been established to provide relevant support for the three sections. Through the planning, development, design and safety regulation control for new product development handled by each corresponding section, the R&D Department endeavors to provide products and services that are precisely aligned to existing market demands. The following will cover the organization of our R&D Department and their corresponding responsibilities:

Department	Section	Primary job description
R&D	Single-Phase UPS Section	Responsible for the development of single-phase UPS product and technology.
	Three-Phase UPS Section	Responsible for the development of three-phase UPS product and technology.
	E.P. Section	Responsible for the research and development of products and technologies for green energy and smart grids such as APF (active power filters), power management systems and energy storage systems.
	Mechanical Design Section	Responsible for all products’ exterior and mechanical designs.
	Administrative Support Section	Responsible for general support of all products, such as BOM establishment, patent application, document control, and procurement of R&D samples..
	Software Section	Responsible for the development of software bundled with products and the system platform for Cloud computing.
	Process design Section	Responsible for the production requirements of all products that meet the manufacturability.
	Safety Section	Responsible for the safety certification of all products

The accumulation of know-how that we have grasped from pre-development, development and post-development of various products enabled the R&D Department to accrue its IP assets. Strengthening innovative R&D and acquiring patents have become a vital strategy for businesses to remain competitive in the market. During the past few years, Ablerex has experienced significant growth in the number of local and foreign patents received and these patents brought concrete benefit to the improvement of our technical capabilities. With relevant deployments in place, our IP assets enabled us to engage in technical exchanges with major international players and even take part in collaboration models of licensing patent rights through technical exchanges. This not only enhanced the company's reputation in terms of its technical capacity and brand value in the industry but also boosts customers' confidence in our technical capabilities. Consequently, our IP assets offer profound positive impacts on our business expansion.

Status of trademark application
Unit: No. of case

Region	Trademark			Total
	Pending	Approval announced	Certificate collected
Taiwan	0	0	5	5
China	0-Ablerex
0-Suzhou	0-Ablerex
0-Suzhou	4-Ablerex
1-Suzhou	4-Ablerex
1-Suzhou
USA	0	0	3	3
EU	0	0	5	5
UK	0	0	5	5
Total	0	0	23	23

Status if trademark application as of Dec 31, 2025.

Status of patent application:

At present, Ablerex has acquired a total of 78 patents and 77 of which are patents of invention. These patents have been utilized on our main products and aptly reflect Ablerex's capacity for research and innovation.

Region	UPS	APF	SOLAR	BMS	ESS	Total
Taiwan	6	2	19	4	6	37
China	2	2	8	2	3	17
USA	6	2	12	2	4	26
Italy	1	0	0	0	0	1
Total	15	6	39	8	13	81

Number of patent applications as of Dec 31, 2025

(2)R&D staffs and their academic credentials

As of Dec 31, 2025, we have a total of 140 employees on our R&D staff, with their academic credential distribution as shown in the table below:

As of Dec 31, 2025/Unit: Person

Academic credentials	PhD	Masters	Bachelor	College	Senior High School and below	Total
No. of employees	2	69	60	5	4	140
Percentage (%)	1.43	49.28	42.86	3.57	2.86	100.00

(3)Research and Development Expenses in the Past Five Years

As of Dec 31, 2025/Unit: NTD Thousands

Year Item	2021	2022	2023	2024	2025
R&D Expense	157,541	165,063	170,979	188,965	196,588
Revenue	2,984,677	3,057,767	2,925,183	3,024,134	3,355,284
Percentage of Revenue	5.28%	5.40%	5.85%	6.25%	5.86%

(4)The following is an overview of the technologies and products that Ablerex has successfully developed:

Year	Product Category	Successfully developed technology or product	Description of characteristics/purpose
2023	APF	APF 30A ESPW30A	1. Adoption of a new three-level architecture significantly improves overall operational efficiency. 2. Reduced noise levels to meet the requirements for office building applications 3. Enhanced power density, enabling an effective reduction in size 4. Wall-mounted design
	UPS	Online three-phase UPS TAURUS 200k	1. Adopted a new three-level topology to significantly improve the double conversion efficiency 2. Real power factor PF = 1.0 3. New fast ECO mode with transferring time < 3ms 4. Equipped energy recycle capability, that allows sending battery energy back to the grid
2024	UPS	On-line single-phase UPS AP2 1k~3k RT / Tower Model for 230Vac / 120Vac System	1. Real power factor PF = 1.0 2. Conversion Efficiency > 93% 3. Optional 8A Super Charger 4. Autonomy time function patent 5. Battery: 1k : 2-3pcs ; 2k : 4-6pcs ; 3k : 6pcs 6. Lead-Acid Battery / Lithium Battery compatible
		On-line single-phase UPS MP4 6k/10k RT / Tower Model	1. Real power factor PF = 1.0 2. Conversion Efficiency > 95% 3. 2U RT model – High power density design 4. Optional 4A Super Charger 5. Lead-Acid Battery / Lithium Battery compatible

Year	Product Category	Successfully developed technology or product	Description of characteristics/purpose
		Line-interactive single-phase UPS GR2 550VA~1kVA	1. Increased product capacity (power factor increased from0.6 to 0.7)2. High power density / reliability / DFM3. Applicant to motor generator4. Standard USB charging port
		Online three-phase UPS TAURUS 200k with transformer isolation	1. Adopted a new three-level topology to significantly improve the double conversion efficiency2. Real power factor PF = 1.03. New fast ECO mode with transferring time < 3ms4. Expand product application
	ESS	TPCS Taurus 200kVA Battery Container Energy Storage System	A new generation of energy storage system with TPCS (based Taurus 200kVA) which can be connected in parallel to expand the system capacity up to 1.6MW according to user needs; it is also equipped with lithium battery modules with high energy density. Through the smart meter (ESS-MET), the TPCS and PV inverters can be integrated to perform a complete control function of the energy storage system. It equipped function modes such as time-of-day electricity fee, automatic scheduling, peak load shaving, self-consumption, emergency output, etc.
2025	APF	APF EnerSine Legend 150A 400V	1. Adoption of a new three-level architecture significantly improves overall operational conversion efficiency.2. Incorporates a new inductor design to increase the output switching frequency. Simplifies hardware design, substantially reducing costs.3. 3U rack-mountable design with a high power density of 150A.4. Available in Rack Module / Wall Mount Type.
	ATS	A.T.S. (Auto Transfer Switch) ATSP-120 / 130 UL Cert.	1. Fast transfer time of 21ms to 16ms.2. Supports firmware updates via USB.3. Supports EPO (Emergency Power Off) function.4. Designed for high MTBF (Mean Time Between Failures).5. Expand business in the US market.
	UPS	Online three-phase UPS Kronos XL 10~40k BSMI (TW)	1. Adoption of a new three-level architecture significantly improves overall operational efficiency.2. Power Factor (PF) = 1.0.3. Newly added Fast ECO transfer mode with a transfer speed of < 3ms.4. Can be equipped with an external transformer or battery bank to effectively reduce the system footprint.5. Expand business in the Taiwan market.
	UPS	Online three-phase UPS Kronos XL 10~40k CE	1. Adoption of a new three-level architecture significantly improves overall operational efficiency.2. Power Factor (PF) = 1.0.3. Newly added Fast ECO transfer mode with a transfer speed of < 3ms.4. Can be equipped with an external transformer or battery bank to effectively reduce the system footprint.5. Expand business in the European market.

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4.1.4 Long-Term and Short-Term Business Development Plans

(1) Short-term business development plan

① Product strategy
a. A low-end single-phase UPS product line launched to meet the needs of the low-price market.
b. Renew the high-end products from generation to generation to maintain the advantage in the market.
c. Integrate products from different products to provide total solutions.
d. Development-oriented "designed for simplified mass production" for manufacturing cost advantages.

② Production strategy
a. Conduct more intelligent monitoring equipment, run deeply into the manufacturing process and continuously reduce quality risks.
b. In response to the trend of rising labor costs, part of the process is transferred to automation to reduce labor and improve manufacturing efficiency and efficiency.
c. Improve energy utilization and move towards a green factory.

③ Marketing strategy
a. Adopt the strategy of adapting measures to local conditions, implement localized operations, utilize technological advantages and combine the market characteristics of different regions to develop differentiated localized brands.
b. Provide integrated brand services from design to after-sales, planning to maintenance.

④ Financial coordination
Based on the principle of stable operation, the company uses its own funds and operating surplus as the main working capital but will also use bank financing in a timely and appropriate amount to seek the optimization of ROE.

(2) Long-term business development plan

(A) Product strategies and goals
In terms of product development, the company shall adhere to the following: strategies:
① Make the existing product series more complete and continue to complete products with different prices to meet multiple choices.
② To refine and deepen our ODM/OEM collaboration models with leading manufacturers around the world and jointly development mainstream products so that we could become the main supplier or partner of strategic alliance with leading manufacturers. This will allow us to expand our scale of production, improve product quality, lower our costs and in turn make the company more competitive.
③ Close integration between new product development, our core technologies and patented technologies to boost our products' competitive edges and enhance our lead against other competitors in terms of technical capabilities.
④ Close coordination with the development of new energy technologies and foray into the research and development of relevant products for green and renewable energies such as solar PV and fuel cells so as to enhance their applications in "smart power grid".

(B) Production strategies
① Improve upon existing manufacturing processes to achieve compliance with relevant eco-friendly standards and green product development by launching pollution-free processes.
② Continue to deepen the application of Industrialization 4.0, coupled with big data analysis, to increase production efficiency, improve quality and achieve the goal of

reducing costs at the same time.

④ Implement total quality management to maintain optimal internal operation at all times.

(C) Marketing strategies

To attain continual improvement in the company's sales, expand the market share of our products and increase the value of Ablerex in the global supply chain, we shall adhere to the following marketing strategies:

① To deliver the best services in all our processes and all aspects of our operation.
② To demonstrate Ablerex's existing core technologies and capabilities and our determination and drive to carry onward in our improvement of technical capabilities.
③ To fortify our search and collaboration with other leading companies around the world and foster partnerships so that we could become one of the primary suppliers of mainstream products in the business.
④ To expand our original product and establish distribution channels for specific products in appropriate region/territory.
⑤ To collect information of local market, connect with our customers and deliver prompt services through our offshore locations.

(D) Financial strategies

① To strengthen exchange management and make appropriate use of financial hedging tools to ensure our costs and revenues, thereby reducing the risks and losses from foreign exchanges.
② To make appropriate use of financial leveraging to lower operating costs.
③ To expand our fundraising channels into the capital market so that we can obtain funding at lower costs and facilitate relevant expansion plans.

(E) R&D strategies:

① To focus on development continuously for products about power quality improvement and power supply reliability.
② To inject more R&D resources for new energy, renewable energy, energy recycling and energy conservation so that we could develop relevant products for the market in the future.
③ To insist on technological innovation and continue with aggressive patent deployment so that we can strengthen our technical competitiveness.
④ Under the consideration of manufacturing feasibility, customization flexibility and diversity of function choices, make products to meet market needs at a cost.
⑤ Improve the development capabilities of high-power capacity products and develop in the direction of large-scale, industrialization and modularization.

4.2 Market and Sales Overview

4.2.1 Market analysis

(1) Sales (Service) regions
Unit: NT$ thousand, %

| Year
Item | 2025 | | |
| --- | --- | --- | --- |
| | | Amount | % |
| Domestic operating income | | 1,647,572 | 49.10% |
| International | Asia | 867,207 | 25.85% |

operating income	America	404,862	12.07%
	Europe	416,515	12.41%
	Others	19,128	0.57%
Total		3,355,284	100.00%

(2) Market share $(\%)$ of Major Product Categories

Ablerex is primarily involved in the production and distribution of UPS, APF, PV Inverters and the subcontracting of power related projects. Presently, we have many competitors in the domestic market, including PCM, Delta Electronics, CyberPower and so forth. However, our products and products from these competitors are distinctively different and as most of these products are customized products, relevant information have been difficult to obtain. This renders a precise calculation of market share to be impossible.

(3) Supply & demand and potential growth of market in the future ① UPS

Despite the long history of the UPS industry, the sector still has much room for growth waiting for businesses to commit and cultivate. Even though the migration of local businesses may significantly reduce the quantity of factory equipment in Taiwan, UPS manufacturers will still be able to locate new market and point of entry. With the prevalence of PC systems and the growing sophistication of machinery functions, end users will grow to better appreciate the necessity and importance of UPS systems. In addition to enterprises and server rooms where UPS have long played a vital role, UPS products have gradually found their way to general consumers. Between large and sophisticated home multimedia entertainment systems and personal PCs, the demand for UPS is starting to stem from even the average consumers.

② APF

With the rapid development of high-tech industries, literally all of their precision instruments require high quality power systems in order to maintain normal operation. However, as most of the high-tech instruments run non-linear load (such as the semiconductor industry), they generate substantial number of harmonics current pollution that has adverse impact on power quality, leading to issues such as voltage distortion, overvoltage and even equipment failure. Consequently, APFs have been installed to mitigate the harmonic currents generated by the load and have therefore been perceived as valuable investments.

In the mid-year update of "Semiconductor Applications Forecaster" published by the American market research organization IDC in 2011, the global semiconductor sales in 2012 will achieve an annual growth of $5\%$ to reach US$ 318 billion and by 2015, the global semiconductor sales will reach US$ 378 million, with compound annual growth rate at $6\%$ spanning from 2010 to 2015. It is therefore natural to predict that the demands for APF will increase as the semiconductor industry recovers from its slump.

Fig. 1: Global Semiconductor Revenue Forecast

③ PV Inverter

According to IMS Research’s prediction, the market for PV inverter will continue to grow, with more noticeable growth in demand in 2020. The demands for small business building PV system (usually between 10~100kW) and PV stations (typical installation of 500kW or higher) are expected to grow more significantly while the demand for residential PV system will be less apparent.

It is estimated that approximately 60% of the PV system installation in the future will take place in Asia, mainly China and most of them would be PV stations. As for residential PV systems, Japan will be the only market that may promise some potential.

④ Residential Energy Storage System

According to Energy trend’s prediction, the ESS market will continuously grow in future. Especially clear and more needs after 2018 to 2020. We estimate the demand of ESS converter (normally 5kW) will likely increase in the foreseeable future.

(4) Competitive niche

Factors such as the yield rate of UPS, productivity and specifications have become the key criteria that global leading brands and channel operators use as guidelines in their selection of UPS supplier. Presently, Ablerex has the following competitive edge in terms of its marketing, product development and manufacturing process:

① Marketing

The company has been actively taking part in major local and international electronics fairs in recent years and has achieve significant exposure in the global sector chains. In addition, our products have received safety certifications in numerous countries and this helps to facilitate the expansion of our business. We also offer a comprehensive selection of small and micro-UPS products that can satisfy customers’ varying needs. With our positive image and solid R&D capabilities, the company has proven itself to be capable of developing new products in accordance with customers’ needs and this has in turn made Ablerex a preferred partner of collaboration for international brand names compared to other local competitors. Consequently, this will be beneficial in our search for ODM/OEM collaboration opportunities.

② Product development

With UPS products becoming more compact and more intelligent with modular and network functionalities, Ablerex has shifted its core technologies towards the development of high speed and high precision. In terms of product development, the company not only has adequate capacity for relevant software and hardware design but

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also managed to reach top class level when it comes to product development speed and design quality. We can work with customers' needs to make relevant changes and technological reforms to launch new products at the right timing so that we are able to compete in the market with products of better performance, superior quality at lower costs.

③ Manufacturing process

Manufacturing process improvement is an important factor in the control of production costs, while quality stability functions as a critical criterion of customer satisfaction and future business expansion. And as such, we have carefully planned and mapped out the entire manufacturing process for the development of new products and have been making continual improvement on our process and quality control so as to facilitate manufacturing processes while lowering relevant costs and enhancing quality. Ablerex has the professional manufacturing capacity to handle independent product development, software design, manufacturing, automated assembly and testing. Not only that, but we also deliver products of outstanding quality, punctual shipping schedules and comprehensive after sales services to stay competitive in the market.

(5) Favorable and Unfavorable Factors in the Long Term

① UPS and APF

Favorable factors

A. Continual upgrading of high-tech industries to propel the continual increase in the demand for UPS and power quality improvement

As high-tech industries upgrade their production capabilities, they would inevitably use more expensive manufacturing processes of higher precision. As a result, their demand for power quality would grow in proportion, thereby driving up the demand for UPS and APF to improve their power quality.

B. Superior R&D capabilities to achieve stable product quality

After accumulating years of experience and expertise from independent research, Ablerex has obtained 98 patents and 97 of which are invention patents that have been featured on our key products. Not only that, but we have also been accredited to ISO 9001 and ISO14001 standards that speak for our high product quality. At the same time, we have also improved our productivity and expanded our production capacity to satisfy the needs of our customers.

Unfavorable factors

A. Product diversification may impede the improvement of production efficiency

With different equipment requiring different capacities and power factors for UPS and APF products, our product lines have become more diverse and this is disadvantageous to the improvement of production efficiency.

Counterstrategy:

We shall improve our production-distribution coordination to achieve precise control of product delivery schedules and always monitor changes in market demand through information systems. The manufacturing department will also make flexible adjustments to its production plan to better manage the delivery schedule and satisfy our customers' needs without compromising the benefits of concentrated batch production.

B. Low energy storage density that is unable to cater to the need for long operation duration

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The greatest drawback of battery banks used for normal UPS systems is their low energy storage density. To construct a large, scaled energy storage system, the batteries would take up substantial physical space.

Counterstrategy:
Due to cost considerations, normal UPS systems use lead-acid batteries. In the future, lithium batteries that offer higher storage density and longer lifecycle might become a viable alternative. Although lithium batteries are significantly more expensive, with the advancement in battery technology and development of electric car batteries, its development in the future is still worth looking forward to.

② PV Inverter

Favorable factors

A. Continual demand for energy keeps international oil prices up

With the rise of emerging nations such as China, India, Brazil and the ongoing growth of US and European economies, the global demand for energy has continued to grow. In addition, as the global petroleum reserve declines over the years, international oil prices have remained high and thus driving nations around the world to seek for alternative energies to mitigate the rising energy costs and energy shortage. Among the alternative energy sources, solar power has received the most abundant investments. With the certainty of growing energy demands in the future, the use of renewable energy will become more prevalent.

B. Growing awareness for environmental protection

The Kyoto Protocol prescribes specific targets of greenhouse gas reduction and is supplemented with multiple flexible operating regulations such as emission trading clean development mechanism and joint implementation. The protocol also touched on the issues of environmentally harmful subsidy reform. The Copenhagen UN Climate Change Conference also involved negotiations of greenhouse gas emission goals with specific carbon reduction objectives and discussions on assisting developing nations to combat global warming. These events have gone to show that the issue of environmental protection is of primary concern to nations around the world and due to the considerations for sustainability, governments will no doubt actively develop renewable energy industries.

C. Government subsidies to reduce installation costs

Due to the low conversion factor of solar power at present, the cost of solar PV generation is still higher compared to other traditional means of power generation. The relatively expensive costs of solar PV system installation will no doubt create additional economic strains on the public that wishes to have solar PV systems. And as such, governments around the world have promulgated subsidy policies, causing the solar PV market to experience explosive growth and continual increase in market demand.

Unfavorable factors

A. Increase in the number of competitors, leading to intense price competition

With the demands gradually growing, there will inevitably be more competitors in the business, only to be followed by price wars and struggle for orders with lower pricings. This would in turn impact the profit margin for products.

Counterstrategy:
The company shall continue to research and innovate in the future so that we can develop products of higher efficiency and functions and other high-end products to differentiate from the low-cost market. In addition, we will also commit more resources to the development of other alternative energies to stay competitive.

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B. The industry is susceptible to the impact of government policies

As the solar PV industry is susceptible to the impact of government policies, product demand may become limited during period of depression when the government is likely to cut down on subsidies to reduce spending.

Counterstrategy:

We will continue to develop new customers and cultivate new customer base in different countries to better understand the needs of our future clients. In addition, we will foray into the respective markets to lower the risks of being overly dependent on the distribution in specific regions.

4.2.2 Production Procedures of Main Products

(1) Primary purpose of main products

Main product categories	Purpose & Functions
UPS	At the moment of power failure, the UPS will temporarily supply power from its battery bank to prevent damages on PC, communication device, consumer electronics, high tech products medical equipment and so forth due to power disruption or power surge.
APF	Generates a compensatory current that is of the opposite phase of the harmonics at the load to effectively improve power quality while preventing excessive harmonic currents from causing interferences or damages on power equipment or production processes.
PV Inverter	Utilizes DC current from solar PV cell and converts it to AC currents similar to the power from city power grid for direct usage or parallel connection to the power grid. PV inverter is a key component in solar PV generation systems.
ESS	The ESS includes smart meter (ESS-MET), inverter (ESS-INV) and battery module (ESS-BAT).

(2) Major Products and Their Production Processes

(3) Supply Status of Main Materials

The main raw materials of the company's products are batteries, transformers, semiconductor electronic parts, plastic materials, iron shell PCBs, wires and other components. The company maintains a long-term, stable and good cooperative relationship with its suppliers. Currently, the supply status of the suppliers it cooperates with is good and there is no shortage or interruption of supply. And continue to promote localized procurement to reduce the impact of transportation on the environment. The proportion

of purchases from various manufacturers is not high and there is no excessive concentration of purchase sources. The company manages the risks and opportunities of the supply chain. In order to prevent the occurrence of force majeure disaster risk events and ensure the stability of the supply source of the main raw materials and key materials for production, the company still maintains contact with other suppliers in the industry or conducts future transactions. reserve.

(4) Major Suppliers and Clients

A. The names of suppliers who have accounted for more than 10% of the total purchases in any of the most recent two years, as well as their amounts and ratios and explain the reasons for their increase or decreases:

Unit: NT$ Thousand; %

Year	2024				2025
Item	Name	Amount	%	Relation with issuer	Item	Name	Amount	%	Relation with issuer
1	Ji Long Engineering Co., Ltd.	135,698	7.52%	None	1	Ji Long Engineering Co., Ltd.	162,270	7.67%	None
2	Other	1,668,817	92.48%	-	2	Other	1,953,074	92.33%	-
	Total	1,804,515	100.00%	-		Total	2,115,344	100.00%	-

Note 1: The name of the customer who has sold more than 10% of the total sales in the last two years and the amount and proportion of the goods sold, but the name of the customer or the transaction object shall not be disclosed as an individual and not a related person because the contract stipulates that the name of the customer shall not be disclosed.
Note 2: As of the printing date of the annual newspaper, companies listed or whose shares have been traded in the place of business of securities dealers shall disclose the most recent financial information verified by an accountant or verification.
Cause of change: There were no significant changes between the two periods.

B. Major Clients (10%) in the Last Two Calendar Years The names of clients who have accounted for more than 10% of the total purchases in any of the most recent two years, as well as their amounts and ratios and explain the reason for their increases or decreases:

Unit: NT$ Thousand; %

Year	2024				2025
Item	Name	Amount	%	Relation with issuer	Item	Name	Amount	%	Relation with issuer
1	(A)	311,558	10.30%	None	1	(A)	325,536	9.70%	None
2	Other	2,712,576	89.70%	-	2	Other	3,029,748	90.30%	-
	Total	3,024,134	100.00%	-		Total	3,355,284	100.00%	-

Note 1: Disclose the names, sales amounts, and percentages of customers accounting for more than 10% of total sales in the most recent two fiscal years. However, if contractually agreed not to disclose customer names, or if the counterparty is an individual and not a related party, codes may be used instead.
Note 2: For companies listed or traded on an over-the-counter (OTC) market, if the most recent financial information audited or reviewed by a certified public accountant is available as of the date of printing the annual report, such information shall also be disclosed.

Cause of change: There were no significant changes between the two periods.

4.3 Human Resources Analysis

Number of employees, average seniority of service, average age and education distribution ratio for the last two years and as of Mar 31, 2026

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Mar 31, 2026, Unit: people, age, %

Year		2024	2025	Until 2026/3/31
Number of Employees	Direct Labor	115	119	133
	Indirect Labor	98	94	98
	Administrative staff	424	441	462
	Total	637	654	693
Average age		39.17	38.95	39.08
Average seniority of service		8.75	8.90	9.00
Education (%)	Ph. D.	0.31%	0.31%	0.29
	Masters	13.50%	13.53%	13.28
	Bachelor’s Degree	34.54%	33.75%	35.50
	College	19.31%	19.75%	19.05
	Senior High School	19.94%	21.77%	20.78
	Junior High School and below	12.40%	10.59%	11.11

Note: The numbers are for all group

4.4 Environmental protection Expenditure

4.4.1 Total Losses and Penalties

According to the law, the applicant shall apply for the establishment of a permit or pollution discharge permit or should pay pollution control costs or the establishment of environmental protection units responsible for the person, the application, payment or establishment of the statement: the company in the production process and No major sources of pollution, but in order to avoid changes in the law also set up environmental protection personnel and regularly check the status of the law to determine whether the impact of the company's operations.

4.4.2 Major equipment to prevention and their usage and potential benefit: None.

4.4.3 Until the date of publication, any improvement in environmental pollution for past two years: None

4.4.4 (Including remedial measures) and possible expenses (including non-response measures that may occur in the future due to the total amount of the damage suffered by the Company in the last two years and as of the date of publication) Loss, disposition and indemnity, if it is not reasonably possible, it shall state the fact that it can reasonably be estimated.: None

4.4.5 The current pollution situation and its improvement on the company's earnings, competitive position and capital expenditure and the expected impact of the next two years of major environmental capital expenditure: None.

4.5 Labor Relations

4.5.1 Employee's welfare package, education and training, retirement plan and employee rights (1) Employee's welfare package:

In addition to following the Labor Standards Act and the relevant regulations, Ablerex

provides group insurances covering healthcare, accidents and health examinations for employees. Ablerex also established the Employees' Welfare Committee which oversees employees' welfare including subsidies of weddings, funerals, in hospitals and birthing and holds activities regularly, such as birthday parties and domestic/foreign trips, to take care the life of employees.

(2) Education and training:

Ablerex holds internal management and specialist training program and encourage employees to attain courses and training held by professional institutions to enhance the proficiency and core competitiveness of employees. The education and training records are as follows:

Item	Courses	Trainees	Hours	Costs
1. Training for New employees	4	44	220	0
2. Specialist training	94	2189	4556	505,216
Total amount	98	2233	4776	505,216

(3) Retirement plan and the implementation:

Ablerex has formulated the retirement and pension plans for employees according to the Labor Standards Act. A certain percentage of salary payment is allocated as retirement reserve funds and if it is not enough for the payment of pension, the additional part will be listed as expense in the financial reports.

Since the implementation of Labor Pension Act in 2005.7.1, for the employees, adopting the defined contribution plan of pension, the pension fund will be paid and deposited in the personal pension fund account for no less than 6% of monthly salary by Ablerex.

(4) Employee rights:

Ablerex has advocated to humane management and set up many channels for employees to communicate with employers. Ablerex thinks highly of all kinds of employees' welfare and feedbacks of communication, so that Ablerex has harmonious relationship between employer and the employees. There is not any dispute on labor relation to be negotiated since Ablerex established. Yet, Ablerex still devote to better employees' welfare to enhance the harmonious labor relation and to prevent any possible labor disputes.

(5) Code of employee's conduct and ethics:

Ablerex has stipulated "Ethical Corporate Management Best-Practice Principles" and relevant managerial regulations for Directors, Managers and employees to prohibit unethical behaviors, the chances of pursuing personal interests, bribery, to protect and properly use the assets of the company, to abide by regulations and to encourage to report any illegal or unethical behaviors.

(6) Working environment and worker's safety protection:

The Company recognizes the importance of a safe working environment and employee safety protection measures. Based on the ISO 9001 and 14001 management systems, and in accordance with the Occupational Safety and Health Act regulations, the Company has established the "Safety and Health Code" to provide employees with clear guidelines and rules to follow. The "Labor Safety and Health Management Plan" is implemented annually, and the contents of the plan, along with various safety management matters, are reviewed during the "Occupational Safety and Health Review Meetings". In daily operations, any major workplace safety incidents are immediately discussed, and occupational safety personnel conduct safety awareness campaigns to implement the occupational safety and health management effectively.

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In accordance with occupational safety and health regulations, the Company enforces its Occupational Safety and Health Management Plan, regularly conducting education and training for employees, disaster drills, and labor safety and health advocacy. This fosters correct awareness of occupational safety. Safety personnel also periodically conduct labor safety assessments and work checks, develop and plan safe work processes aimed at eliminating hazards, preventing work injuries, and reducing the risks of work-related incidents.

Continuous follow-up activities on environmental and occupational safety and health promotion

A. Environmental regulations compliance

Ablerex established and obtained the certification of the ISO 14001 environmental management system based on the characteristics of the industry to strengthen the operational management of the factory environment, safety and health, and implement actions to deal with environmental impacts. All the company's colleagues implement and enforce the environmental, safety and health management regulations. In 2024, the company was not fined or subject to sanctions other than fines due to environmental pollution, violation of environmental laws and regulations or litigation.

B. Plan for Occupational Disaster Prevention

The Company's Safety and Health Policy and Labor Health Management Plan allocate an annual budget for disaster prevention and occupational safety-related items. These efforts are supported by safety warning signs in the workplace, regular safety and health education advocacy, and ongoing training to cultivate employees' knowledge and habits related to safety. In the event of a workplace injury, immediate reporting to supervisors and safety personnel is required to assist with emergency handling. Safety personnel will then notify the relevant units and conduct a cause analysis with them. Improvement measures will be jointly developed, and related personnel will be alerted to raise awareness and implement corresponding actions. In 2024, there was one workplace safety incident, and the Company continues to raise employee safety awareness, strictly enforcing the use of protective equipment and ensuring safety measures. Regular labor safety inspections will also be carried out to address and improve any safety deficiencies.

C. Implement the autonomous inspection

Employees in the face of different operating environment, process, operation and operation, may be due to unsafe operations, equipment or management and other factors, resulting in physical harm, to this end, the company is actively promoting the autonomous inspection, this is a measure to promote the discovery of potential hazards and strive to improve and effectively control. The company carries out autonomous inspection the items, including equipment, the use of raw materials, operating environment, operating machinery and motor vehicles.

D. On-site job environment measurement and personal protection of employees

In the implementation of the operating environment of the Company, the operating environment measurement plan containing the sampling strategy is prepared and the project is collected from the basic data collection, the process flow and the hazard record. Through the observation, interview record, survey, (CO2), noise, ... and so on.

Site workplace planning safety line, the protection part of the necessary equipment, such

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as the protection of protective equipment, earplugs, etc., on the part of the staff assigned to the safety shoes to strengthen the protection. Regular health checks every three years, the most recent implementation date 2024.07.19.

E. Strengthen corporate social responsibility to take care of employees

In the spirit of corporate social responsibility, the Company has a Code of Ethics on Employee Practitioners, which clearly protects employees' work fairly and maintains their work. We also set up the Supplier Corporate Social Responsibility (CSR) Code for Supplier Management and Specifically, they are required to sign back the declaration, the specific requirements of the staff must also protect the rights and interests.

4.5.2 Any current or potential loss resulting from labor disputes and prevention actions for the past 2 years and as of the date of this annual report:

Ablerex values the welfare of all employees and has harmonious relationship between employer and the employees. Ablerex has no major dispute on labor relation in the past 2 years and up to the printing date of this Annual Report. Therefore, there should be no concerns on the loss resulting from labor disputes.

4.6 Cyber security risk management

(1) Describe the security risk management framework, information security policy, specific management plan and resources invested in the safety management of Information and communication, etc.:

The Company is committed to upholding the rights and interests of its investors, shareholders, customers, suppliers, employees, financial institutions, government agencies, neighboring communities, and other stakeholders, supporting sustainable growth and responsible corporate governance. Alongside robust corporate governance and a strong sense of social responsibility, the Company's operations are guided by internal control systems and management mechanisms that ensure operational effectiveness, financial reporting accuracy, and legal compliance.

Information security management mechanism

In alignment with its commitment to sustainable operations and development, the Company advances

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the objectives of its Information Security Risk Management Policy through three core pillars: Information Security Governance, Regulatory Compliance, and Technology Adoption. This approach strengthens information security management and promotes a “security-based information development” model. The Company prioritizes the confidentiality, integrity, and availability of data processed for customers and employees, ensuring secure data handling at every stage. By providing safe, stable, and efficient information services, the Company supports the adoption of security measures and continuous improvement within its information security management system.

Information Security Policy
Information security governance	Physical and environmental security: ensures that the organisation's physical facilities and environment are subject to appropriate security controls.
Asset Management: The management of an organisation's assets, including their identification, classification, tracking, and protection.
Information Security Incident Management: Establishing policies and procedures for responding to information security incidents and incidents.
Information assurance: ensuring adequate plans are in place to secure and recover information.
Classifying, categorising, and processing information: Ensure that information is classified, categorised, and processed according to its sensitivity.
Compliance	Cybersecurity: Follow relevant regulations and standards to protect the organization's network and data transmission.
Security Development Policy: Develop and implement appropriate security policies to ensure regulatory compliance.
Technical Vulnerability Management: Monitor and manage system and application security vulnerabilities.
Technology application	Data transfer: Ensure data is appropriately protected during transmission.
Security configuration of endpoint devices: Manage and maintain the security configuration of terminal devices.
Cryptography: Using appropriate encryption techniques to protect sensitive information and communications.
Technology Vulnerability Management: Integrated use of technology tools to identify, assess, and address vulnerabilities.

Information security management unit

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security risks and report to the board of directors.

Information service process management

Information Security Management Solution

The company reviews information security risks through risk identification and risk assessment, confirms the degree of adverse impact of the information security risks on corporate operations, takes corresponding management measures, and reviews information architecture, network activities, network equipment, servers and terminals Focusing on equipment detection and security settings review, we can check and evaluate whether there are vulnerabilities or old equipment problems at any time, and also respond to the challenges faced by information security, such as APT advanced persistent attacks, DDoS attacks, ransomware, and social engineering attacks. , information theft and other information issues, the planned information security management plan is as follows:

Risk Assessment: Conduct comprehensive risk assessments on a regular basis to identify potential threats, vulnerabilities, and risks.

Security policies and procedures: Implement access controls, password policies, data classification, and other requirements.
Access control: implement authentication and authorization mechanisms to ensure that only authorized personnel can access sensitive information.
Cybersecurity: protecting network infrastructure, including firewalls, intrusion detection systems, vulnerability scans and security updates to reduce cyber threats.
Security Training and Education: Conduct security training and education for employees to increase their awareness of information security.
Monitoring and alerting: Implement monitoring systems to observe network activity and detect abnormal behavior in a timely manner to respond quickly to security incidents.
Incident response plan: Develop a security incident response plan and data recovery strategy to mitigate losses and quickly resume operations.
Regular reviews and updates: Review and update security measures regularly to ensure they are responsive to new threats and vulnerabilities.

Resources in information security management

project	2023	2024	2025
Antivirus software	58,500	96,750	123,000
Maintenance costs	2,363,149	2,209,711	2,177,810
Computer room door control fee	0	0	0
Equipment and software upgrade costs	3,259,830	4,653,578	2,310,577
total	5,681,479	6,960,039	4,611,387

Information security incidents and insurance

Information security risk management review and improvement

reference basis.

Implementation in 2025(2024/11-2025/10) is as follows:

Execution of Social Engineering Simulation

Simulation Method and Purpose

Customized emails were sent to all employee accounts, with five simulation emails mimicking common social engineering tactics.
Employee responses were quantified by tracking metrics such as email open rate, link click rate, attachment open rate, and phishing success rate, to inform follow-up training and performance evaluation.

Simulation Results

Item	Number of Employees	Percentage
Opened emails containing unsafe content	20	7.1%
Clicked on malicious links	7	2.5%
Opened/downloaded attachments	8	2.8%
Fell for phishing attempt	2	0.7%

Follow-up Actions

Employees who failed the simulation were required to attend 1-hour cybersecurity training. All participants completed the course and passed the assessment, achieving a 100% training pass rate.

Regular System Updates

The Kaohsiung FileServer and Taipei MailServer were recently updated to patch known vulnerabilities, ensuring systems remain secure and resilient.

Annual User Permissions Review

User permissions are reviewed annually to prevent unauthorized data access, with all permissions evaluated and adjusted as necessary before year-end.

Centralized Anti-Virus Monitoring

The company utilizes a centralized anti-virus system, Kaspersky, to monitor and swiftly respond to any virus incidents.

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Be approved by ISO 27001 Information Security Management System

Ad Hoc Awareness Campaigns on Cybersecurity Threat Intelligence

Recently, it was observed that hackers are distributing malware via spoofed LINE websites to steal personal data and account credentials. Their attack methods include:

Impersonating messaging app websites.
Using search engine manipulation to increase exposure of fake sites.
Distributing malicious installation files with multi-layer backdoors.
Evading antivirus detection.

Examples of recent spoofed websites include:

www[.]lineoe[.]com
www[.]linerm[.]com
www[.]linecl[.]com
www[.]line-tww[.]com

Preventive Recommendations for All Employees:

Download software only from official websites or authorized app stores.
Avoid clicking on links or opening attachments from unknown sources.
Regularly update antivirus software.
Immediately verify suspicious messages and refrain from replying or clicking.

Reporter: Manager of Information and Human Resources Department/ T.M. Lin

(Submit the "Information Security Risk Management Report" to the Audit committee and Board of Directors for review on 2025.11.3)

(2) List the losses suffered due to major information security incidents in the most recent year and as of the date of publication of the annual report, the possible impacts and countermeasures. If it cannot be reasonably estimated, the fact that it cannot be reasonably estimated should be stated: None.

4.7 Important Contracts

Principal current contractual agreements shown below were effective or expired during the most recent reporting period:

Agreement	Counterparty	Period	Major Contents	Restrictions
Equipment, Installation	Chief Telecom	2024/01/01~2025/06/30	Jiuzong IDC Data Center Expansion – Uninterruptible Power Supply (UPS) System Upgrade - Addition of 8× 500KVA UPS Units	None
Equipment, Installation	Taiwan High Speed Rail Corporation (THSRC)	2024/06/06~2025/07/31	2024 Substation Facilities Lead-Acid Battery Replacement and Installation Project	None
Equipment, Installation	Chief Telecom	2024/07/01~2025/06/30	Jiuzong IDC Data Center Expansion – UPS System Upgrade (Addition of 10× 500KVA UPS Units)	None
Equipment, Installation	King Yuan Electronics Co., Ltd. (Tongluo Branch)	2024/07/29~2025/04/30	TL3_1F, 4F, 5F – Phase 2 Cleanroom UPS System Expansion Project	None
Equipment, Installation	Giga Solution Tech Co., Ltd.	2024/08/06~2025/03/31	LineC P2 – 500KVA UPS System (Primary Distribution) – 15 Sets	None
Equipment, Installation	Giga Solution Tech Co., Ltd.	2024/08/09~2025/04/30	LineC P2 – 500KVA UPS System (Primary Distribution) – 16 Sets	None
Equipment, Installation	Micron Technology Taiwan, Inc.	2024/08/15~2025/12/31	F11_EI_FY25 – F11 Backup System UPS Lead-Acid Battery Replacement	None
Equipment, Installation	Chunghwa Telecom Co., Ltd. Information Technology Branch	2024/12/03~2025/05/31	Sanchong Chongxin Data Center – UPS Replacement Project	None
Equipment, Installation	King Yuan Electronics Co., Ltd. (Zhunan Branch)	2024/12/16~2025/05/31	CH2-9-3	None

V. Review of Financial Conditions, Financial Performance and Risk Management

5.1 Condensed Financial Position – Under IFRSs

NTDThousands;%

| Year
Item | 2024 | 2025 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | % |
| Current assets | 2,506,276 | 2,551,990 | 45,714 | 1.82 |
| Non-current financial assets at fair value through other comprehensive income | 199,743 | 82,389 | (117,354) | (58.75) |
| Financial assets measured at amortized cost - non-current | 875 | 0 | (875) | (100.00) |
| Property, plant and equipment | 763,544 | 736,752 | (26,792) | (3.51) |
| Right-of-use assets | 19,764 | 12,690 | (7,074) | (35.79) |
| Intangible assets | 44,040 | 43,193 | (847) | (1.92) |
| Deferred income tax assets | 41,009 | 40,253 | (756) | (1.84) |
| Other non-current assets | 30,755 | 34,780 | 4,025 | 13.09 |
| Total assets | 3,606,006 | 3,502,047 | (103,959) | (2.88) |
| Current liabilities | 1,709,621 | 1,689,087 | (20,534) | (1.20) |
| Long-term borrowings | 33,827 | 0 | (33,827) | (100.00) |
| Deferred income tax liabilities | 110,976 | 114,011 | 3,035 | 2.73 |
| Non-current lease liabilities | 9,841 | 5,312 | (4,529) | (46.02) |
| Other non-current liabilities | 5,797 | 4,157 | (1,640) | (28.29) |
| Total liabilities | 1,870,062 | 1,812,567 | (57,495) | (3.07) |
| Total equity attributable to owners of parent | 1,720,292 | 1,687,012 | (33,280) | (1.93) |
| Share capital | 450,000 | 450,000 | 0 | 0.00 |
| Capital surplus | 713,679 | 713,348 | (331) | (0.05) |
| Retained earnings | 459,495 | 551,704 | 92,209 | 20.07 |
| Other equity interest | 97,118 | -28,040 | (125,158) | (128.87) |
| Non-controlling interests | 15,652 | 2,468 | (13,184) | (84.23) |
| Total liabilities and equity | 1,735,944 | 1,689,480 | (46,464) | (2.68) |

Analysis of changes in financial ratios, which changes more than 20% and the changed amount is over

NT$10 million:

Financial assets measured at fair value through other comprehensive income - non-current: Due to changes in fair value.
Long-term borrowings: Due to the repayment of bank-guaranteed loans during this period.
Other equity: Due to changes in the fair value of financial assets measured at fair value through other comprehensive income - non-current.
Non-controlling interest: Due to the capital reduction of Ablerex Electronics (Beijing) Co., Ltd.

152

5.2 Financial Performance

A. Condensed Consolidated Financial Performance Analysis – Under IFRSs

NTD Thousands; %

Year Item	2024	2025	Difference
			Amount	%
Sales revenue	3,024,134	3,355,284	331,150	10.95
Operating costs	2,225,054	2,357,374	132,320	5.95
Gross profit from operations	799,080	997,910	198,830	24.88
Operating expenses	699,990	747,421	47,431	6.78
Net operating income	99,090	250,489	151,399	152.79
Non-operating income and expenses	34,096	(11,849)	(45,945)	(134.75)
Profit before income tax	133,186	238,640	105,454	79.18
Income tax expense	35,956	58,283	22,327	62.10
Profit for the period	97,230	180,357	83,127	85.50

Analysis of changes in financial ratios, which changes more than 20% and the changed amount is over NT$10 million:
1. Gross Profit: Mainly due to the increase in operating revenue.
2. Operating Profit/Loss: Mainly due to the increase in operating revenue.
3. Non-Operating Income and Expenses: Mainly due to foreign exchange losses.
4. Income Before Tax: Mainly due to the increase in operating revenue.
5. Income Tax: Mainly due to the increase in operating revenue.
6. Net Income: Mainly due to the increase in operating revenue.

B. Estimated sales volume and its basis, the possible impact on the company's future financial business and the response plan:

In 2026, the global Uninterruptible Power Supply (UPS) market is expected to maintain steady growth. According to reports from international market research institutions, the global UPS market size reached approximately USD 14.7 billion in 2025 and is projected to continue expanding in 2026, primarily driven by demand from data centers, the expansion of artificial intelligence (AI) applications, edge computing, and industrial automation. Product development trends are shifting towards high power density, lithium battery adoption, and integrated smart monitoring, which helps enhance added value. However, global macroeconomic fluctuations, adjustments in corporate capital expenditures, and geopolitical risks may still impact market demand.

In the domestic market, the government's renewable energy policies are expected to sustain momentum related to solar installation targets into 2026. Concurrently, building energy efficiency policies are gradually promoting the installation of rooftop photovoltaic systems, driving demand for power converters and maintenance services. The energy storage market is progressively expanding from frequency regulation applications to energy shifting and enhancing grid resilience. Demand for commercial and industrial (C&I) and grid-scale energy storage continues to develop, although market size and progress remain influenced by policy adjustments and changes in electricity trading mechanisms.

Taking into account market trends and the Company's advantages in power electronics technology, we will continue to deepen our international ODM and OBM UPS business in 2026,

strengthening the development of high-efficiency products and system integration capabilities. Simultaneously, by integrating in-house developed Power Conversion Systems (PCS) and Energy Management Systems (EMS), we will promote integrated "Generation + Storage + Management" solutions to expand revenue streams from non-UPS product lines. Through product mix optimization and technological upgrades, the Company aims to increase added value and the proportion of recurring income, thereby enhancing overall profitability and market competitiveness.

Overall, the energy industry possesses a foundation for medium-to-long-term growth. The Company will prudently respond to market changes and flexibly adjust resource allocation to maintain stable operations and sustainable growth.

5.3 Analysis of Cash Flow

5.3.1 Liquidity analysis of the recent years

Item\Year	2025	2024	Financial ratio change
Current ratio	23.10	3.96	+19.14 pp
Cash Flow adequacy ratio	67.82	50.25	+17.57 pp
Cash reinvestment ratio	13.00	0.00	+13.00 pp

Analysis of financial ratio change:

(1) Current ratio: The Company's net cash inflow from operating activities for the fiscal year 2025 showed a significant increase compared to 2024. Coupled with a decrease in current liabilities, this resulted in a substantial increase in the ratio. The primary reasons for the sharp rise in net cash inflow from operating activities were the profit growth in 2025, along with high collections of accounts receivable and an increase in accounts payable.
(2) Cash Flow adequacy ratio : The ratio was less than 1 because the Company's net cash inflow from operating activities over the most recent five-year period was not sufficient to cover the capital expenditures, increase in inventory, and cash dividend payments during that same period. However, due to the significant increase in net cash inflow from operating activities in 2025, this ratio showed a noticeable improvement.
(3) Cash reinvestment ratio : Due to the significant increase in net cash inflow from operating activities in 2025, which was sufficient to cover the cash dividend payments for that year, this ratio rose to $13.00\%$ .

5.3.2 Remedy for cash deficit and liquidity insufficient: Operating profits of the company has been stable, still get full support from financial institutions and no liquidity insufficient up to the date of the report printed.

5.3.3 Analysis of cash liquidity in 1 year

Unit: NT$ thousand

Beginning cash balance (1)	Expected net cash flow from operating activity	Expected cash outflow of the year (3)	Expected cash surplus (deficit) (1)+(2)-(3)	Remedial measures for the expected insufficient cash
				Investing	Financing
1	100,000	100,000	100,000	100,000	100,000
2	100,000	100,000	100,000	100,000	100,000
3	100,000	100,000	100,000	100,000	100,000

155

	of the year (2)			plan	plan
344,519	98,977	(92,655)	350,841	-	-

Analysis of cash flow change in one year:
(1) Operating activity: It is estimated that profitability will be maintained in 2026. Through the control of payment terms and inventory, operating activities are expected to generate a net cash inflow.
(2) Investing activity: Primarily consisting of additional purchases of R&D equipment, acquisition of intellectual property rights, and the upgrade and renewal of production line equipment.
(3) Financing activity: Plans include repaying loans from financial institutions and distributing cash dividends.
Remedial measures for the expected insufficient cash and liquidity analysis: N/A

5.4 Impact of major capital expenditure on finance and business: None.

5.5 Investment policies, reasons for gain or loss and improvement plan regarding investment plans in current year and the next year

5.5.1 Investment Policies:

In response to the need to strengthen the company's business development and upstream and downstream integration, the company will be prepared to assess the implementation of the investment plan after the investment.

5.5.2 Reasons for gain or loss and improvement plan regarding investment plans in current year

Dec. 31, 2025; Unit: NT$ thousand

Invested Company	Invested Amount	Investment Policy	Recognition of the investment gain or loss in the latest year	Main reason of gain or loss	Improvement plan
Ablerex Electronics (SAMOA) Co. LTD.	US$6,635	To set up Ablerex-SZ and Holding company of Ablerex-BJ.	NT$(11,895)	Mainly recognized profit loss from ABLEREX-SZ	Increase business sales and reduce costs.
Ablerex Corporation	US$250	To promote and sales for America territory.	NT$18,703	Proactive sales promotion demonstrates business performance.	-
Ablerex International Corp. LTD.	HK$10	Trading Company between Ablerex and Ablerex-SZ.	NT$691	Support to promote sales	-
Ablerex Electronics(s) PTE. LTD	US$1,480	To promote and sales for EMEA.	NT$463	Proactive sales promotion demonstrates business performance.	-
Ablerex Electronics UK LTD.	GBP$100	To set up Holding company of	NT$(4,924)	Mainly recognized profit loss from	Increase sales and reduce

156

Invested Company	Invested Amount	Investment Policy	Recognition of the investment gain or loss in the latest year	Main reason of gain or loss	Improvement plan
		Ablerex-IT.		ABLEREX-IT	costs.
WADA DENKI CO., LTD.	JPY29,700	To promote and sales for Japan territory.	NT$9,207	Actively promote the business to demonstrate business performance.	-

Note: The Company recognizes the write-down of the investment gains and losses.

5.5.3 Investment Plan in the next year: None

5.6 Risk Management and Evaluation until the report printed.

5.6.1 The impact of interest rate, exchange rate and inflation on the company's income and expense and the responsive measures:

The impact of interest rate change:

For the fiscal years 2025 and 2024, the Group's finance costs were NT$10,991 thousand and NT$12,147 thousand, respectively, accounting for 0.33% and 0.40% of net operating revenue for the respective periods. The proportion of finance costs to the Group's net operating revenue is very low. Furthermore, as the Group's financing primarily consists of short-term borrowings, it is not expected to be exposed to significant fair value interest rate risk. The Group will adhere to sound and conservative financial management principles and maintain close contact with its banks to stay promptly informed of interest rate fluctuations and mitigate their impact on the Group.

The impact of exchange rate fluctuation:

The business of the Group involves a number of non-functional currencies (the functional currency of the Company is NT and the functional currency of some subsidiaries is USD and RMB). Therefore, the foreign currency assets affected by the exchange rate fluctuation and liability information and foreign currency market risk analysis as follows.

2025.12.31				Fiscal 2025
				Sensitivity Analysis
(Foreign Currency: Functional Currency)	Currency (thousand)	Rate	Book amount (NT$)	variation	Affect net profit before tax	Affect other comprehensive gains and losses
Financial assets
monetary items
US$ : NT$	$6,551	31.4300	$205,898	1%	$2,059	-
JPY : NT$	10,668	0.2008	2,142	1%	21	-
US$ : RMB	426	6.9907	13,389	1%	134	-
SGD : US$	1,806	0.7779	44,156	1%	442	-
Financial liabilities

monetary items
US$ : NT$	$3,926	31.4300	$123,394	1%	$1,234	-
US$ : RMB	268	6.9907	8,423	1%	84	-
SGD : US$	218	0.7779	5,330	1%	53	-

The Group will maintain close contact with correspondent banks to grasp the relevant information of exchange rate changes in real time and reduce the impact of exchange rate changes on the company.

The responsive measures to the risk of exchange rate fluctuation:

a. Continue to strengthen personnel concepts for exchange hedging, through a greater interaction for real exchange rate system with financial institutions, so as to judge to the impact of exchange rate fluctuations arising.

b. Before quoting to customer, the company will estimate the trends and factors that influence the exchange rate in future. More comprehensive consideration is required to determine a reasonable pricing and to minimize the effect of changes in the exchange rate.

c. To achieve a certain degree of natural hedging effect through an offset for regular A/P and A/R.

d. Under the "Regulations Governing the Acquisition and Disposal of Assets", the company will effectively reduce the purchase of various assess derivative financial instruments exchange rate risks by hedging part of responsibilities in charge of strict control to prevent inappropriate transactions to reduce exchange rate risks arising from the exchange losses.

The impact of inflation

Due to the impact of inflation, the company's operating expenses have increased year by year. However, as of now, inflation has not caused any significant impact on the company's profits and losses. The company closely monitors market price fluctuations and maintains strong relationships with suppliers and customers, allowing for appropriate adjustments in product pricing and raw material inventory levels. These measures are expected to effectively mitigate the impact of inflation on the company.

5.6.2 Conducting high-risk and high-leveraged investment, granting loans to others, endorsement & guarantee and derivatives policy, main cause of profit and loss and the responsive measures:

a. The company has dedicated to the core business since established. No high-risk nor high-leveraged investment has been implemented.

b. The company conducts loaning funds according to "Operational Procedures for Loaning Funds to Others". The information of the company and the subsidiaries loaning funds to others up to the date of the report printed is disclosed as the following:

(1) Information of the subsidiaries loaning funds to others up to the date of the report printed:

Date approved by BoD	Company Name	Relationship with the Company	Collateral	Loan Term	Approved loan	Rate	Date of loan funds	Disbursed Loan Amount
2026/3/11	Ablerex Electronics Italy Srl	Grandchild Company	None	1 year	896,092.39	0.00%	2025/12/31	408,688.60
2026/3/11					631,916.26		2026/1/30	631,916.26
2026/3/11					616,586.46		2026/2/26	616,586.46
2026/3/11	Ablerex Latam Corporation	Grandchild Company	None	1 year	50,000.00	0.00%	2026/2/26	50,000.00
Summation								1,707,191.32

Note: The above amount represents overdue accounts receivable from related parties, which are classified as loans to others according to regulations and are non-interest-bearing.

(2) Subsidiary of the company, The Company's subsidiary company funds loans and other information:

Ablerex Corporation (hereinafter "Ablerex-US") provided intercompany loans to her subsubsidiary Ablerex Latam Corporation (hereinafter "Ablerex-LATAM"). Ablerex Electronics (S) Pte. Ltd. (hereinafter "Ablerex-SG") provided intercompany loans to its sub-subsidiary Ablerex Electronics (Thailand) Co., Ltd. (hereinafter "Ablerex-TH") to support her operational development needs. The details of the loan arrangements are presented in the following tables:

◎ Ablerex-US

Date of loan funds	Date approved by BOD	Company Name	Approved loan	Loan balance	Rate	Collateral	Collateral	Due date
2025/8/12	2025/8/4	Ablerex-LATAM	US$1,500,000	USD1,450,000	3.0%	Due for repayment	Credit	2026/8/12

◎ Ablerex-SG

Date of loan funds	Date approved by BOD	Company Name	Approved loan	Loan balance	Rate	Collateral	Collateral	Due date
2024/3/20	2024/3/20	Ablerex -TH	US$800,000	USD510,000	1.00%	Due for repayment	Credit	2027/3/19
2024/12/31				USD61,303.50

(2) The company conducts endorsement guarantees according to the internal policy "Procedures for Making of Endorsements / Guarantees". Information of the company and the subsidiaries making endorsements / guarantees up to the date of the report printed is disclosed as the following:

Unit: US$

Date of Endorsement/ Guarantee	Date approved by BOD	Guaranteed Company	Relationship with Ablerex	Collateral	Guarantee Items	Undertaking Bank	Endorsement/ Guarantee Amount
2025/3/26	2024/3/11	Ablerex-HK	Subsidiary	N/A	Bank financing	Mega Bank	USD 3,000,000
2025/11/5	2025/8/4	Ablerex-HK	Subsidiary	N/A	Bank financing	Taipei Fubon	USD 2,500,000
2025/11/24	2025/8/4	Ablerex-HK	Subsidiary	N/A	Bank financing	China Trust	USD 2,000,000
Total							USD 7,500,000

(3) The purpose of the company engaging in the derivatives trading is to avoid the risk of change in foreign currency assets or liabilities due to the fluctuation of exchange rate. The derivatives trading is focused on forward foreign exchange contract and the trading procedure is abided by the internal regulation “Procedures for Acquisition or Disposal of Assets”. The risk of derivatives trading is limited.

5.6.3 Future R&D projects and corresponding budget:

It is fundamental for R&D in the electronic industry. So the R&D should provide the plan every year. According to plan provision related to R&D to ensure competitive niche of the Company. The company has always attached great importance to research and development of products, the trend growth of the R&D costs in the following table to know the year, the future will continue to foster outstanding research and development personnel and actively involved in research resources to cope with the changing market trends and improve their own it Competitiveness.

The Company's research and development philosophy is:

(1) to focus on improving power quality and improve reliability of power supply products
(2) development and integration of advanced power electronics and digital control technology
(3) introduced into academic research, access to innovation and key technologies
(4) the implementation of the patented technology layout, improve the industry barriers to competition
(5) really grasp technology trends and market demand, real-time development of new products The company's future research plans and programs as follows:
(1) downsize, intelligence and other network-oriented and decentralized
(2) three-phase high frequency parallel among large UPS
(3) Power Quality Management Technology
(4) High-power grid-connected PV Inverter
(5) Power Management Software Technology
(6) Smart Grid Applications Related Products
(7) Wireless Battery Monitoring System (Wireless BMS)

Project	Description
Three-phase high frequency parallel among large UPS	1. Solve the issue of flexibly changed output load, to develop a UPS with multiple parallel operation functions and develop towards modularization and high-efficiency multifunctional use. 2. Propose a fast transfer solution of DC/AC backup power supply to improve the short power-off time problem caused by the backup power system at the moment of power-off transition in the hot standby state.
Power Quality Management Technology	According to the demand of the load end, a harmonic current that is inverse to the load harmonic current is injected into the power system. This harmonic current and the load harmonic current cancel each other, so that the power system end obtains a current waveform close to sinusoidal and achieves the filtering of harmonics. effect. To improve some damage problems caused by harmonic currents, such as transformer overheating,
	the power system, the power output is reduced to a maximum of 1000 W. This is the maximum power output to be used for the power system. This is the maximum power output to be used for the power system.
Wireless Battery Monitoring System (Wireless BMS)	According to the demand of the load end, a harmonic current that is inverse to the load harmonic current is injected into the power system. This harmonic current and the load harmonic current cancel each other, so that the power system end obtains a current waveform close to sinusoidal and achieves the filtering of harmonics. effect. To improve some damage problems caused by harmonic currents, such as transformer overheating,
	the power system, the power output is reduced to a maximum of 1000 W. This is the maximum power output to be used for the power system.

160

Project	Description
	rotating machinery disturbance, voltage distortion, damage to power components and machine failures, etc., to make the power system more stable.
High-power grid-connected PV Inverter	Develop new islanding effect detection technology to break through the existing barriers and patent barriers and use the three-phase parallel power conversion interface technology as the green energy of solar energy as its electrical energy, to achieve energy saving and carbon reduction the goal.
Power Management Software Technology	Mainly use embedded system development and its main purpose is to provide a system development platform required for general industrial control applications based on PC-based architecture, with the functions required in general industrial applications and more; through comprehensive design in advance Consider, provide different equipment for different application requirements.
Smart Grid Applications Related Products	The introduction of smart grid product development can record the power generation/power consumption relationship diagrams at different points in time, which can be used as a household power monitoring system and achieve energy-saving effects. And with the company's current PV Inverter products, as a basis for energy saving, improve the integrity of PV Solution and increase market competitiveness.
Wireless Battery Monitoring System (Wireless BMS)	Developed a database/curve viewing system with wireless transmission function, which can remotely monitor and diagnose battery operation status, save on-site installation costs and use it with UPS to make the product more diversified.

The investment for last three years and the research and development costs expected in 2025 as follows:

Unit: NT$ in Thousands

Item / Year	2023	2024	2025	Expected in 2026
R&D invested	170,979	188,965	196,588	220,392

5.6.4 The impact of domestic and international policies and law change on the company's finance and business and the responsive measures:

The Company dynamically adjusts its operational strategies in compliance with national policies and international standards to ensure regulatory adherence and enhance competitiveness. The significant changes and their impacts for 2026 are as follows:

International Carbon Border Mechanism (CBAM) and Green Supply Chain Requirements: The EU CBAM has entered its implementation phase. Although the Company's products are not among the initial directly targeted categories, customers in Europe and America are imposing increasingly stringent requirements regarding product carbon footprints (PCF). The Company has completed ISO 14064-1 verification and is advancing its carbon management mechanisms, while strengthening R&D in high-efficiency power conversion technologies to secure its competitive advantage in the global market.

Domestic Energy Policy and Carbon Fee System: With the official implementation of the carbon fee in Taiwan, although procurement and energy costs have increased, the Company benefits from the amendments to the Renewable Energy Development Act and grid resilience policies, which are driving demand for solar photovoltaic and energy storage systems. The Company is actively deploying "solar-plus-storage" solutions, mitigating carbon-related risks through supply chain diversification and process optimization, thereby converting policy dividends into revenue momentum.

Sustainability Information Disclosure and Capital Market Regulations: In line with the convergence towards IFRS S1/S2 standards, the transparency of sustainability information directly impacts investment evaluations and financing conditions. The Company continues to strengthen its ESG

governance and disclosure quality to maintain a favorable credit rating and the trust of capital markets, ultimately reducing long-term financing costs.

5.6.5 The impact of technology change (including information security risks) and industrial change on the company's finance and business and the responsive measures:

Amidst the rising tide of Artificial Intelligence (AI) applications and High-Performance Computing (HPC), the demand for data center construction continues to escalate. AI and HPC equipment, known for their high energy consumption density, perform critical tasks of data storage and exchange, rendering office-level energy management systems insufficient. Consequently, the deployment of extensive, high-power, and rapid-response energy management systems has become a crucial requirement for the new generation of energy systems. In this trend, Uninterruptible Power Supply (UPS) systems have evolved from emergency energy rescue for enterprises to energy management equipment. In this context, the ability to manufacture UPS systems with high density, low energy consumption, high stability, and long durability is the key to mastering power management in data centers.

In response to industry development and product application trends, the company is not only enhancing UPS (uninterruptible power supply) technology by moving toward larger-scale and systemized solutions but also actively developing high-efficiency, compact, high-capacity, and high-value-added power quality improvement systems, green energy systems, and energy storage systems. Each year, the company invests significant resources in research and development, dedicating manpower and funding to applied theoretical research and new product design to stay ahead of future electronic product trends and maintain its competitive edge.

The company make a review of the cyber security risk through risk identification and risk assessment, confirms the adverse impact of the cyber security risk on the company's operation, takes corresponding solutions and reviews the information structure, network activities, network equipment, server and terminals. Check and assess whether there are bugs or old equipment problems at any time and respond to the challenges faced by cyber security, such as APT advanced persistent attacks, DDoS attacks, ransomware, social engineering attacks, steals and other funding issues, the planned cyber security management plan is as follows:

(1) Network firewall settings: Block external malicious attacks and prevent hacker intrusions.
(2) Antivirus software settings: Protect internal computers from unknown emails or phishing websites from implanting viruses or Trojans.
(3) System program data access control: Strict control and application procedures are implemented to protect data from leakage.
(4) Email management control: Establish email control and protection mechanisms to reduce external email attacks.
(5) Information system disaster recovery plan: Annual disaster recovery plan exercise.

5.6.6 The impact of industrial image change on business risk management and the responsive measures:

161

Since its establishment, the company has been adhering to the business target of reliability, ethical management and has continued to actively strengthen the company's internal management and improve its quality management capabilities. At the same time, we actively implement ESG in line with the trend and actively publish ESG reports to establish a good corporate image of the company. In the corporate governance evaluation, it has successively achieved good results and ranked among the top. The company's corporate image has not changed significantly in the most recent year and the reporting year and there are no reports about any adverse corporate image in the market. In the future, the company will pursue the greatest shareholders' rights and employees' rights and will also contribute to the largest society of the company. responsibility.

5.6.7 The expected effect, potential risk and responsive measures of merger:

The companies did not have any merger conducted in 2025 and up to the date of the annual report printed.

5.6.8 The expected effect, potential risk and responsive measures of plant expansion:

The companies did not have any plant expansion in 2025 and up to the date of the annual report printed.

5.6.9 The risk due to concentration of procurements and sales and the responsive measures:

a. The risk due to concentration of procurements and the responsive measures:

The main raw materials of products include batteries, steel sheets, transformers, semiconductor electronic components, etc. Due to the large number of suppliers, the purchase amount and proportion of each manufacturer will not be too high or excessively dependent, so there is no excessive concentration of purchases Risk. In order to maintain flexibility in the bargaining of raw material prices, the company has not forced to sign long-term supply contracts with suppliers, but in terms of major raw materials, it maintains the supply of several suppliers and the company and each supplier All maintain a long-term good cooperative relationship to ensure the stability of the supply source.

b. The risk due to concentration of sales and the responsive measures:

The company's main sales target is branded customers and agency distributors all over the world. However, under the trend of global corporate mergers and acquisitions, there is indeed a trend of centralized sales; this trend will make the company face production and revenue vulnerable to a small number of customers. And face greater price pressure. The Company has adopted product diversification and actively expanded its response to emerging markets. It will tend to diversify the products, customers and regional combinations that are shipped to prevent the risk of excessive sales concentration.

5.6.10 The impact of massive stock transfer or change by directors, supervisors and shareholders with over $10\%$ shareholding, the risk and the responsive measures:

There was not any massive stock transfer or change by directors and shareholders with over $10\%$ shareholding in 2025 and up to the date of the annual report printed.

162

5.6.11 The impact of right to operation changes on the company, the risk and the responsive measures:

No right changed on the company up to the date of the annual report printed so N/A for the issue.

5.6.12 Legal and non-legal events:

(1) The result of the judgments settled or ongoing lawsuits, non-lawsuits or administrative lawsuits in the last 2 years up to the date of the report printed, which could cause significant impact on shareholders' equity or security price of the company, should reveal the arguing facts, amount engaged, litigation starting date, the main parties of the suit and present situation: None.

(2) Major ongoing lawsuits, non-lawsuits or administrative lawsuits caused by Directors, Supervisors, President, Person in charge and shareholders with over 10% holdings of the company and subsidiaries in the last 2 years up to the date of the report printed. The result could cause significant impact on shareholders' equity or security price of the company: None.

(3) Anything listed in Article 157 of Securities and Exchange Act had been implemented by Directors, Supervisors, managers and shareholders with over 10% holdings of the company and the response of the company in the last 2 years up to the date of the report reprinted: None

5.6.13 Other significant risks and responsive measures: None

5.7 Other important matters: None

163

VI. Special Disclosure

6.1 Consolidated financial statements of the related party
6.1.1 Organization structure of related party:

6.1.2 Company profile of related party:

2025.12.31, Unit: NT$ Thousand

Company Name	Date of Setup	Address	Paid-Up Capital	Business
Ablerex Electronics (Samoa) Co. Ltd. (Ablerex-Samoa)	2001.06.07	Offshore Chambers, P.O. Box 217, Apia, Samoa.	208,538	Holding
Ablerex Overseas Corporation Limited (Ablerex-Overseas)	2007.11.07	1004 AXA Centre, 151 Gloucester Road, Wan Chai, Hong Kong.	208,538	Holding
Ablerex Electronics (Suzhou) Co. Ltd. (Ablerex-SZ)	2001.07.13	NO.36 WANGWU ROAD SUZHOU, 215128	171,608	Manufacturing and Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex Electronics (Beijing) Co. Ltd. (Ablerex-BJ)	2009.08.06	21 St. Thomas Street BRISTOL BS1 6JS	35,968	Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex Corporation (Ablerex-USA)	2006.09.26	1175 South Grove Ave. unit 103Ontario CA 91761, USA	7,858	Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex International Corporation Limited (Ablerex-HK)	2007.05.09	1004 AXA Centre, 151 Gloucester Road, Wan Chai, Hong Kong.	40	Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex Electronics (S) PTE. LTD. (Ablerex-SG)	2002.04.17	23 New Industrial Road #05-03 Solstice Business Center Singapore 536209	52,260	Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex Electronics UK Limited (Ablerex-UK)	2009.04.30	21 St. Thomas Street BRISTOL BS1 6JS	4,233	Holding
Ablerex Electronics Italy S.R.L (Ablerex-IT)	2009.5.20	Via Ponte San Michele, 6, 36100 Vicenza, Italy	3,690	Sales of UPS system, PV equipment and relative Power Electronics products.
WADA DENKI CO., LTD. (Ablerex-JP)	2016.09.16	No. 10 Nihonbashi Ningyocho 1-19-6, Chuo-ku, Tokyo	6,024	Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex Electronics (Thailand) Co. Ltd.	2017.6.15	No.99/237, Sukhaphiban 5 Road,O-ngoen Sub-district, Sai Mai District, Bangkok	2,005	Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex Latam Corporation	2018.9.12	1500 NVV 89th Court,Suite 122,Doral, FL33172,USA	15,715	Sales of UPS system, PV equipment and relative Power Electronics products.
Ablerex Electronics Ltd.(Ablerex-GB)	2024.5.14	19 The Circle Queen Elizabeth Street , London	423	Sales of UPS system, PV equipment and relative Power Electronics products.

6.1.3 Presumed to have the same shareholder information as controls and subordinates: None

6.1.4 Overall relationship the business and division of labor covered by the business of the enterprise: The businesses covered by the overall affiliated corporation mainly include investment holding, manufacturing, sales, trading and management services of electronic products, etc.

The Company produced electronic products via the following relationship branches:
(1) Ablerex Electronics (Suzhou) Co. Ltd.
The Company sold electronic products via the following relationship branches:
(1) Ablerex Corporation
(2) Ablerex Electronics (S) PTE. LTD.
(3) Ablerex Electronics Italy S.R.L

165

(4) Ablerex Electronics (Suzhou) Co. Ltd.
(5) Ablerex Electronics (Beijing) Co. Ltd.
(6) WADA DENKI CO., LTD
(7) Ablerex Electronics (Thailand) Co. Ltd.
(8) Ablerex Latam Corporation
(9) Ablerex Electronics Limited

6.1.5 The information of directors, supervisors and general manager for relationship between enterprises

Company Name	Title	Name	Share	Share Rate
Ablerex Electronics (Samoa) Co. Ltd. (Ablerex-Samoa)	Director	Y.A. Chen	6,635,000	100%
Ablerex Corporation (Ablerex-USA)	Director	Wen Hsu	250,000	100%
	Director	YI FANG Chang
Ablerex International Corporation Limited (Ablerex-HK)	Director	Wen Hsu	10,000	100%
Ablerex Electronics (S) PTE. LTD.(Ablerex-SG)	Director	Wen Hsu	2,140,763	100%
Ablerex Electronics UK Limited (Ablerex-UK)	Director	Wen Hsu	100,000	100%
Ablerex Overseas Corporation Limited (Ablerex-Overseas)	Director	Y.A. Chen	6,635,000	100%
Ablerex Electronics Limited(Ablerex-GB)	Director	Roberto	10,000	100%
Ablerex Electronics Italy S.R.L (Ablerex-IT)	Director	Roberto	NA*	100%
Ablerex Electronics (Suzhou) Co. Ltd. (Ablerex-SZ)	Chairman	Y.A. Chen	NA*	100%
	Director	Wen Hsu
	Director	L.Wang
	Supervisor	Z.F. Lin
Ablerex Electronics (Beijing) Co. Ltd. (Ablerex-BJ)	Chairman	Wen Hsu	NA*	100%
Wada Denki Co., Ltd. (*)	Chairman	Wen Hsu	2,970	99%
	Chairman	Wada
	Director	Joseph Hwang
	Supervisor	Z.F. Lin
Ablerex Electronics (Thailand) Co. Ltd. (Ablerex (Thailand))	Director	Tan Kok Peng	20,000	94%
Ablerex Latam Corporation (Ablerex-LATAM)	Director	Wen Hsu	3,650	86%

Wada Denki Co., LTD.: It has been passed with a special resolution of the board of directors on 2020.5.8 to transfer 1% of its share to the manager of the subsidiary due to tax planning.
The company type for the limited company, so no shares.

6.1.6 Overview of the relationship branch

2025.12.31
Unit: NT thousands (EPS in NT$)

Company Name	Capital	Asset	Liabilities	Net	Revenue	Profit and loss	Profit and loas (after tax)	EPS (NT$) after Tax
Ablerex Corporation	7,858	237,641	100,770	136,871	263,675	24,156	20,824	83.29
Ablerex LATAM Corporation	15,715	114,874	99,512	15,362	141,316	2,521	(2,738)	(750.24)
Ablerex International Corporation Limited	40	133,749	97,746	36,003	685,468	(245)	691	69.12
Ablerex Electronics (S) Pte. Ltd.	52,260	164,135	56,576	107,559	218,873	(2,223)	(769)	(0.36)
Ablerex Electronics (Thailand) Co Ltd.	2,005	16,419	19,675	(3,256)	15,234	(1,598)	(301)	(0.15)
Ablerex Electronics U.K Limited..	4,233	19,599	0	19,599	0	0	(2,522)	(25.22)
Ablerex Electronics Italy S.R.L.	3,690	185,104	165,505	19,599	238,042	(100)	(2,522)	NA(Note 2)
Ablerex Electronics LTD.-GB	423	14,544	13,178	1,366	29,862	1,562	914	91
Wada Denki Co., LTD.	6,024	63,667	31,990	31,677	108,983	19,288	12,882	4294.07
Ablerex Electronics (Samoa) Co., Ltd.	208,538	481,383	176	481,207	0	(41)	(10,222)	(1.54)
Ablerex Overseas Corporation Limited	208,538	481,431	63	481,368	0	(407)	(10,181)	(1.53)
Ablerex Electronics (Suzhou) Co., Ltd.	171,608	679,205	249,825	429,380	1,090,993	4,532	(8,377)	NA(Note 2)
Ablerex Electronics (Beijing) Co., Ltd.	35,968	56,389	6,984	49,405	37,713	(1,878)	(1,796)	NA(Note 2)

Note 1: In the case of a foreign company, the relevant figures are converted to NT at the exchange rate.

Currency	sight	Average
US$	31.43	31.1797
EUR	36.90	35.1754
RMB	4.4960	4.3334
GBP	42.33	41.0638
JPY	0.2008	0.2085
Thai Baht	1.0026	0.9541

Note 2: The company type is the limited company, so no shares.

6.1.7 Consolidated Financial Statements and Affiliated Enterprise Report:

Please refer to the Company's consolidated financial reports available on the Market Observation Post System (MOPS).

MOPS Website: https://emops.twse.com.tw/server-java/t58query

6.2 Subscription of marketable securities privately in the most recent years and up to the date of the report printed: None.

167

6.3 Supplementary disclosures: Commitment matters and handling situation for OTC as:

Commitment for OTC	Situation
2. Committed to add "the Company shall not give up the Capital Increasing of ABLEREX ELECTRONICS (SAMOA) CO., LTD. (ABLEREX-SAMOA), JOINT REWARDS CORP., ABLEREX INTERNATIONAL, ABLEREX CORPORATION, ABLEREX ELECTRONICS (S) PTE LTD. and ABLEREX ELECTRONICS U.K. LIMITED " in “acquisition or disposal of assets processing procedures". ABLEREX-SAMOA will not give up the Capital Increasing of ABLEREX-OVERSEAS. ABLEREX-UK will not give up the Capital Increasing of ABLEREX-ITALY S.R.L., ABLEREX-OVERSEAS will not give up the Capital Increasing of ABLEREX-Suzhou and ABLEREX-BEIJING. : In the future, if the Company is due to agree by the strategic alliance or other consortium of the Securities and Exchange Commission of the Republic of China, the Company shall waive the capital increase or divestment of the Company. The resolution was adopted. And if the amendment is to be amended, it should be disclosed by the public information observatory and disclosed to Tpex.	This clause has been updated and has not been amended to date
4. Committed to carried out annual internal audit by the person in Ablerex-SZ after the company registered in OTC.	Has executed the application as per the company committed.
Ablerex Electronics (Suzhou) Co., Ltd. has established an audit room in September 2009 and assign a full-time auditor to carry out the internal audit operations.

169

Ablerex Electronics Company Limited

Statement of Internal Control System

Date: March 11, 2026

Based on the findings of a self-assessment, Ablerex Electronics Company Limited (Ablerex) states the following with regard to its internal control system during the year 2025:

Ablerex’s Board of Directors and Management are responsible for establishing, implementing, and maintaining an adequate internal control system. Our internal control is a process designed to provide reasonable assurance over the effectiveness and efficiency of our operations (including profitability, performance, and safeguarding of assets), reliability of our financial reporting, and compliance with applicable laws and regulations.
An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of accomplishing its stated objectives. Moreover, the effectiveness of an internal control system may be subject to changes due to extenuating circumstances beyond our control. Nevertheless, our internal control system contains self-monitoring mechanisms, and Ablerex takes immediate remedial actions in response to any identified deficiencies.
Ablerex evaluates the design and operating effectiveness of its internal control system based on the criteria provided in the Regulations Governing the Establishment of Internal Control Systems by Public Companies (herein below, the Regulations). The criteria adopted by the Regulations identify five key components of managerial internal control: (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring.
Ablerex has evaluated the design and operating effectiveness of its internal control system according to the aforesaid Regulations.
Based on the findings of such evaluation, Ablerex believes that on December 31, 2025, it has maintained, in all material respects an effective internal control system (that includes the supervision and management of our subsidiaries) to provide reasonable assurance over our operational effectiveness and efficiency, reliability of financial reporting, and compliance with applicable laws and regulations.
This Statement will be an integral part of Ablerex’s Annual Report for the year 2025 and Prospectus, and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities and Exchange Law.
This Statement has been passed by the Board of Directors in their meeting held on March 11, 2026, with none of the nine attending directors expressing dissenting opinions, and the remainder all affirming the content of this Statement.

Ablerex Electronics Co., Ltd.

Steven Hsu
Chairman

M.Z.Hwang
General Manager

170

Audit Committee's Review Report

The Board of Directors has prepared the Company's 2025 Business Report, Financial Statements, and proposal for allocation of profits. Lin, Se-Kai/CPA and Lin, Kuan-Hung/CPA, The CPA firm of PricewaterhouseCooper was retained to audit Ablerex's Financial Statements and has issued an audit report relating to the Financial Statements. The Business Report, Financial Statements, and profit allocation proposal have been reviewed and determined to be correct and accurate by the Audit Committee members of Taiwan Semiconductor Manufacturing Company Limited. According to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Law, we hereby submit this report.

2026 Annual General Shareholders' Meeting

Ablerex Electronics Co., Ltd.

Chairman of the Audit Committee: Sir Y.J. Ding

March 11, 2026

(As per Page 11 of Chinese version of "Handbook for the 2025 Annual Shareholders' Meeting)

www.ablerex.com.tw

Experts in Power Conversion

AI assistant

盈正 — Annual Report 2025

72748_rns_2026-05-28_23d55be3-962c-4cbd-8d72-b0d21a1dd4c8.pdf

2025 Annual Report

Ablerex Electronics Co., Ltd.

Notice to readers

Table of Contents

3. Business Plan for 2026

A. Business guidelines

B. Sales Forecasts and basis

C. Major production and sales strategy

1. Production strategy:

2. Sales strategy:

D. Research and Development Status

4. The impact of the External Competitive Environment, Regulatory Environment and Macroeconomic Conditions

A. External Competitive Environment

B. Regulatory Environment

2.1.2 Directors 2

Explanation of the Cause:

Adopted Measures:

C. Remuneration of Executive Officers

2.3 Implementation of Corporate Governance

2.3.1 Implementation of Board of Directors

Other matters for records:

Information on the operation of the audit committee

Other matters for records:

Risk assessment and management strategy

Implementation

Implementation in 2025

Cyber security risk management

Information security management mechanism

Information security management unit

Information service process management

Information Security Management Solution

Regular System Updates

Annual User Permissions Review

Centralized Anti-Virus Monitoring

Be approved by ISO 27001 Information Security Management System

Ad Hoc Awareness Campaigns on Cybersecurity Threat Intelligence

Operations of Remuneration Committee and Major resolution in 2025:

To review salary and remuneration periodically

Independent Assurance Statement

This Independent Assurance Statement by ARES Certification Co., Ltd. on Ablerex Electronics Co., Ltd. ESG Sustainability Report of 2024.

The Scope of Assurance

ARES INTERNATIONAL's Opinion

Verification Method

Conclusion

Human Rights Assessment

Implementation Status:

4.1.2 Industry Overview

A. Off-line

B. On-line

C. Line-interactive

② Active Power Filter (APF)

A. Passive Power Filter

B. Active Power Filter

C. Hybrid Power Filter

③ PV Inverter

A. Status of the global solar power market:

B. Types of solar PV systems

1. Stand-Alone System

2. Grid-Connected System

3. Hybrid System

Current Status and Future Development of PV

(1) Anti-islanding technologies

4.1.3 Research and Development

(1) Technical level and R&D of our business

(3)Research and Development Expenses in the Past Five Years

4.1.4 Long-Term and Short-Term Business Development Plans

(C) Marketing strategies

(D) Financial strategies

(E) R&D strategies:

4.2 Market and Sales Overview

4.2.1 Market analysis

③ PV Inverter

④ Residential Energy Storage System

(4) Competitive niche

① Marketing

② Product development

4.2.2 Production Procedures of Main Products

盈正 Annual Report 2025