Abnova

Stock Code: 4133

Abnova (Taiwan) Corporation

2025 Annual Report

Taiwan Stock Exchange Market Observation Post System:
https://mops.twse.com.tw

Abnova (Taiwan) Corporation Annual Report is available at:
https://www.abnova.com

Printed on Apr. 10, 2026

Notice to readers.

THIS IS A TRANSLATION OF THE 2025 ANNUAL REPORT (THE “ANNUAL REPORT”) OF ABNOVA (TAIWAN) CORPORATION (THE “COMPANY”). THIS TRANSLATION IS INTENDED FOR REFERENCE ONLY AND NOTHING ELSE, THE COMPANY HEREBY DISCLAIMS ANY AND ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION. THE CHINESE TEXT OF THE ANNUAL REPORT SHALL GOVERN ANY AND ALL MATTERS RELATED TO THE INTERPRETATION OF THE SUBJECT MATTER STATED HEREIN.

Spokesperson
Name: Jih Pei Ju
Title: President
Tel: 886-2-87511888
E-mail: [email protected]

Deputy Spokesperson
Name: Tung I Ling
Title: Chairman Office Special Assistant
Tel: 886-2-87511888
E-mail: [email protected]

Stock Transfer Agent
KGI
Address: 5F., No. 2, Sec. 1,
Chongqing S. Rd., Zhongzheng Dist.,
Taipei City
Tel: 886-2-23892999
Website: https://www.kgieworld.com.tw

Auditors
KPMG Accounting Firm
Auditors: Chiang Hsiao Ling, Wu Tsao Jen
Address: 68F., No. 7, Sec. 5,
Xinyi Rd., Xinyi Dist., Taipei City
Tel.: 886-2-81016666
Website: https://www.kpmg.com.tw

Overseas Securities Exchange
None

Corporate Website
https://www.abnova.com

Headquarters, Branches and Plant
Headquarters
Address:
9th Fl., No.108, Jhouzih St. Neihu District.
Taipei Taiwan
Tel: 886-2-87511888

Zhongli Qingpu Plant
Address:
No. 326-8, Sec. 4, Zhongzheng Rd.
Zhongli Dist., Taoyuan Taiwan
Tel: 886-3-4989228

Table of Contents

Page number

I. Letter to Shareholders ... 1

II. Corporate Governance Report

2.1 Information on the Directors, Supervisors and Management Team ... 7
2.1.1 Directors and supervisors ... 7
2.1.2 Information on the company's President, assistant Presidents, Senior managers, and the chiefs of all the company's divisions and branch units ... 16

2.2 Remuneration of Directors, Independent Directors, Supervisors, President, and Vice Presidents ... 17
2.2.1 Remuneration of Directors, Independent Directors, Supervisors, President, and Vice Presidents ... 17
2.2.2 Separately compare and describe total remuneration, as a percentage of net income stated in the parent company only financial reports or individual financial reports, as paid by this company and by each other company included in the consolidated financial statements during the past 2 fiscal years to directors, supervisors, Presidents, and assistant Presidents, and analyze and describe remuneration policies, standards, and packages, the procedure for determining remuneration, and its linkage to operating performance and future risk exposure ... 20

2.3 Corporate Governance ... 24
2.3.1 Board of Directors and Performance Evaluation of the Board of Directors ... 24
2.3.2 Audit Committee ... 27
2.3.3 Corporate Governance Implementation Status and Deviations from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" ... 30
2.3.4 If the company has a remuneration committee or nomination committee in place, the composition and operation of such committee shall be disclosed ... 45
2.3.5 Fulfillment of CSR and Deviations from the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies" ... 46
2.3.6 Climate-Related Information of TWSE/TPEx Listed Company ... 78
2.3.7 Fulfillment of Ethical Corporate Management and Deviations from the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" ... 91
2.3.8 Other significant information that will provide a better understanding of the state of the company's implementation of corporate governance may also be disclosed ... 93
2.3.9 Internal Control System ... 94
2.3.10 Material resolutions of a shareholders meeting or a board of directors meeting during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report ... 95
2.3.11 Where, during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, a director or supervisor has expressed a dissenting opinion with respect to a material resolution passed by the board of directors, and said dissenting opinion has been recorded or prepared as a written declaration, disclose the principal content thereof ... 96

2.4 Information Regarding the Certified Public Accountants' Audit Fee ... 97
2.4.1 The amounts of the audit fees and non-audit fees paid to the attesting certified public accountants and to the accounting firm to which they belong and to any affiliated enterprises, along with the details of non-audit services ... 97
2.4.2 When the securities firm changes its accounting firm and the audit fees paid for the financial year in which the change took place are lower than those paid for the financial year immediately preceding the change, the amount of the audit fees before and after the change and the reason shall be disclosed ... 97
2.4.3 When the audit fees paid for the current financial year are lower than those paid for the immediately preceding financial year by 10 percent or more, the amount and percentage of and reason for the reduction in audit fees shall be disclosed ... 97

2.5 Information on the replacement of certified public accountant ... 97
2.5.1 Regarding the former certified public accountant ... 97
2.5.2 Regarding the successor certified public accountant ... 98
2.5.3 The reply of former CPAs on Article 10.5.1 and Article 10.5.2.3 of the Standards ... 98

2.6 Where the company's chairperson, President, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed... 98

2.7 Any transfer of equity interests and/or pledge of or change in equity interests (during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report) by a director, supervisor, managerial officer, or shareholder with a stake of more than 10 percent during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report... 98

2.7.1 Change in shareholding by directors, supervisors, managerial officers, or major shareholders... 98

2.7.2 Stock trade with related parties by directors, supervisors, managerial officers, or major shareholders... 98

2.7.3 Stock pledge with related party... 98

2.8 Relationship information, if among the company's 10 largest shareholders any one is a related party or a relative within the second degree of kinship of another... 99

2.9 The total number of shares and total equity stake held in any single enterprise by the company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly by the company and total shareholding... 100

III. Capital Overview

3.1 Capital and Shares... 101

3.1.1 Source of capital stock... 101

3.1.2 List of major shareholders... 102

3.1.3 Company's dividend policy and its state of implementation... 102

3.1.4 Effect upon business performance and earnings per share of any stock dividend distribution proposed or adopted at the most recent shareholders' meeting... 104

3.1.5 Profit-sharing compensation of employees and directors... 104

3.1.6 Share repurchases by the Company... 105

3.2 Issuance of corporate bonds... 105

3.3 Preferred shares... 105

3.4 Global depository receipts... 105

3.5 Employee share subscription warrants... 105

3.6 New restricted employee shares... 105

3.7 Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies... 105

3.8 Capital allocation plans... 105

IV. Operational Highlights

4.1 Business Activities... 106

4.1.1 Business Scope... 106

4.1.2 Overview of industry... 110

4.1.3 Overview of technologies and research and development work... 119

4.1.4 Long- and short-term business development plans... 122

4.2 Market and Sales Overview... 124

4.2.1 Market analysis... 124

4.2.2 Usage and manufacturing processes for the company's main products... 129

4.2.3 Supply situation for the company's major raw materials... 130

4.2.4 List of suppliers and clients accounting for 10% or more of the company's total procurement (sales) amount in either of the 2 most recent fiscal years, the amounts bought from (sold to) each, the percentage of total procurement (sales) accounted for by each, and an explanation of the reason for increases or decreases... 131

4.3 The number of employees employed for the 2 most recent fiscal years, and during the current fiscal year up to the date of publication of the annual report, their average years of service, average age, and education levels... 131

4.4 Environmental Protection Expenditure... 132

4.5 Labor Relations... 132

4.5.1 Employee benefit plans, continuing education, training, retirement systems, and the status of their implementation, and the status of labor-management agreements and measures for preserving employees' rights and interests... 132

4.5.2 Any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to labor disputes, and disclosing an estimate of possible expenses that could be incurred currently and, in the future, and measures being or to be taken 132

4.6 Cyber Security Management 133

4.6.1 Cyber security risk management framework, cyber security policies, concrete management programs, and investments in resources for cyber security management 133
4.6.2 Losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to significant cyber security incidents, the possible impacts therefrom, and measures being or to be taken 136

4.7 Important Contracts 137

V. Review of Financial Conditions, Operating Results, and Risk Management

5.1 Analysis of Financial Status 138
5.2 Analysis of Operation Results 138

5.2.1 Analysis of Financial Performance 138
5.2.2 Sales volume forecast and the basis therefor, and describe the effect upon the company's financial operations as well as measures to be taken in response 139

5.3 Analysis of Cash Flow 139

5.3.1 Analysis of cash flow changes during the most recent fiscal year 139
5.3.2 Corrective measures to be taken in response to illiquidity 139
5.3.3 Solvency analysis for the coming year 139

5.4 Effect upon financial operations of any major capital expenditure during the most recent fiscal year 139
5.5 Reinvestment policy for the most recent fiscal year, the main reasons for the profits/losses generated thereby, the plan for improving re-investment profitability, and investment plans for the coming year 139

5.5.1 Reinvestment policy for the most recent fiscal year 139
5.5.2 The main reasons for the profits/losses generated thereby, the plan for improving reinvestment profitability, and investment plans for the coming year 140

5.6. Risk analysis in the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report 140

5.6.1 Effect upon the company's profits (losses) of interest and exchange rate fluctuations and changes in the inflation rate, and response measures to be taken in the future 140
5.6.2 The company's policy regarding high-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses thereby generated; and response measures to be taken in the future 141
5.6.3 Research and development work to be carried out in the future, and further expenditures expected for research and development work 141
5.6.4 Effect on the company's financial operations of important policies adopted and changes in the legal environment at home and abroad, and measures to be taken in response 141
5.6.5 Effect on the company's financial operations of developments in science and technology (including cyber security risks) as well as industrial change, and measures to be taken in response. 141
5.6.6 Effect on the company's crisis management of changes in the company's corporate image, and measures to be taken in response 142
5.6.7 Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken 142
5.6.8 Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken 142
5.6.9 Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken 142
5.6.10 Effect upon and risk to the company in the event a major quantity of shares belonging to a director, supervisor, or shareholder holding greater than a $10\%$ stake in the company has been transferred or has otherwise changed hands, and mitigation measures being or to be taken 142

5.6.11 Effect upon and risk to company associated with any change in governance personnel or top management, and mitigation measures being or to be taken... 142
5.6.12 Litigious and non-litigious matters 142
5.6.13 Other important risks, and mitigation measures being or to be taken 142

5.7 Other important matters 142

VI. Special Disclosure

6.1 Information of the Affiliates 143

6.1.1 Consolidated Business Report of the Affiliates 143
6.1.2 Consolidated Financial Statements of Affiliated Enterprises 144

6.2 Private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, and the status of use of the capital raised through the private placement of securities, the implementation progress of the plan, and the realization of the benefits of the plan 144
6.3 Other matters that require additional description 144

VII. If any of the situations listed in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report 145

VIII. Appendix

Consolidated financial statements for the most recent fiscal year 145

I. Letter to Shareholders

Appreciate the shareholders' support of Abnova. The following is Abnova's 2025 achievement sharing and 2026 outlook report:

I. 2025 Operating Results: (Consolidated Financial Statements)

Implementation overview and business plan implementation results:
The operating revenue in 2025 was NTD 351,299 thousand, which is 1.11% lower than the 2024 operating income of NTD 355,257 thousand. The net loss after tax in 2025 was NTD 1,141 thousand, which is a decrease of 101.85% compared with the net profit after tax of NTD 61,607 thousand in 2024. The loss per share for 2025 was NTD 0.02.
Analysis of financial balance and profitability: Please refer to the attached financial statements for the financial overview of 2025.
Research Development Overview: The expenses invested in research and development in 2025 were NTD 45,561 thousand, which is 13.83% higher than the 2024 expenses of NTD 40,025 thousand. The company's R&D efforts primarily focused on mRNA-related applications, In Vivo Grade Functional Antibodies, and RNAutomation™ mRNA Upgrades Systems etc.

II. 2026 Business Plan:

Business Marketing:

Since 2025, Abnova has been collaborating with the academic literature AI search engine CiteAb to integrate the AI Citation Widget into its official website. Using advanced AI, extensive citation data is incorporated to present product-related academic citation information in real time. In 2026, the Company will continue to deepen this collaboration by deploying a second-generation, SEO-optimized AI Citation Widget to enhance the visibility of Abnova's products in Google Scholar search results.

Meanwhile, Abnova continues to optimize its website search functionality. In response to researchers' search habits for integrated queries, a new application-oriented search mechanism has been introduced, allowing users to simultaneously search by product name and application area, thereby improving both search efficiency and precision.

Regarding digital marketing strategy, Abnova uses LinkedIn advertising to promote new products and key product lines, effectively reaching the global scientific research community. As of November 2025, the number of e-newsletter subscribers has grown to 560,000. Through monthly, theme-based technical content—covering product technology profiles and explanations of new applications—Abnova continues to reinforce researchers' trust in its professional capabilities and enhance brand awareness.

Looking ahead to 2026, Abnova will take digitalization and intelligent transformation as its core development directions, further deepening the application of AI technologies and content marketing strategies, integrating three key dimensions: academic citation, search experience, and brand promotion, to build a more efficient and precision-oriented scientific research service platform, while continuously strengthening its professional influence in the global research market.

2. Product Development:

(1) RNA Laboratory Reagents

Abnova's RNA laboratory reagents are categorized into six major groups based on RNA molecular types and biological characteristics, including mRNA, circRNA, dsRNA, miRNA, lncRNA, and Total RNA. These reagents comprehensively cover research applications across different RNA types and support diverse experimental needs, from basic research to preclinical studies.

mRNA products: Provide capping reagents, reaction enzymes, nucleotides, and products related to mRNA synthesis and purification, widely applied in gene expression studies and mRNA vaccine development.
circRNA products: Focus on synthesis and labeling-related technologies, enabling researchers to investigate the molecular stability, biological functions, and potential applications of circRNA in depth.
dsRNA products: Primarily used for double-stranded RNA research, supporting RNA interference mechanisms and innate immune response analysis. The products include dsRNA antibodies and assay kits suitable for functional studies at both cellular and molecular levels.
miRNA products: Offer comprehensive solutions including probes, PCR reagents, and purification tools for the detection, quantification, and analysis of miRNA-mediated gene regulatory mechanisms.
lncRNA products: Currently focused on PCR-related reagents for research applications, supporting expression analysis and functional studies of long non-coding RNAs.
Total RNA products: Provide a complete set of reagents and tools from RNA extraction and purification to downstream analysis, enabling researchers to establish stable and high-quality RNA experimental workflows.

Abnova's RNA laboratory reagents comprehensively support a wide range of RNA research, providing researchers with essential reagents and tools at various stages of their work and consistently meeting the professional needs of both basic research and preclinical applications.

RNA Laboratory Reagents:
www.abnova.com/en-global/product?category=BE0000000000

(2) In Vivo Functional Grade Antibodies

Abnova's in vivo functional grade antibodies are specifically designed for in vivo studies in mice and rats. These antibodies are characterized by high purity, ultra-low endotoxin levels, and being free from preservatives and stabilizers, effectively minimizing non-specific immune interference and ensuring the safety of animal studies and the reliability of data. All antibodies are validated by flow cytometry, with functionality confirmed through comparisons between positive and negative cell lines, ensuring consistent quality and experimental rigor.

These products cover two major categories:

Antibodies targeting mouse genes: Suitable for studies involving implantation of mouse tumor cells into immunocompetent mice, enabling the simulation of target gene functions and effects within the mouse immune system.
Antibodies targeting human genes: Suitable for models involving implantation of human tumor cells into immunodeficient mice, simulating the targeting effects and regulatory mechanisms of antibodies against human tumors.

These two systems are designed to address different tumor origins and immune backgrounds, providing a more comprehensive evaluation of in vivo functionality and helping researchers thoroughly validate the biological activity of antibody targets. in vivo functional grade antibodies have become essential tools in tumor immunology, immune regulation, and disease model research. They not only enable precise simulation of physiological mechanisms but also effectively support the validation of the therapeutic potential of antibodies, thereby accelerating drug development and the translational research process.

In Vivo Functional Grade Antibodies Product Catalogue: www.abnova.com/en-global/product/specializedproductsearch/invivomab

(3) VLP and Nanodisc Membrane Protein Expression Systems:

Membrane proteins are critical targets for many drugs. However, due to their highly complex transmembrane structures, challenges such as structural instability, loss of activity, and improper membrane insertion during expression and purification have long limited their functionality, making membrane protein research and drug development a persistent bottleneck.

Abnova integrates two core technology platforms—VLP (Virus-Like Particle) and Nanodisc—to overcome the limitations of conventional preparation techniques, enabling stable expression while preserving the structural integrity and functional activity of membrane proteins:

VLP platform: Composed of virus-like shells, this platform can stably encapsulate membrane proteins and simulate the native membrane environment. It does not contain viral genomes and therefore ensures a high level of safety.
Nanodisc platform: Provides a membrane environment similar to that of natural cell membranes, allowing membrane proteins to maintain correct structure and activity. Without the need for surfactants, membrane proteins can be stably dissolved in aqueous solutions, facilitating downstream analysis and drug screening.

Through multiple validations of biological activity and structural integrity, Abnova has demonstrated that membrane proteins prepared by these two platforms exhibit high stability and reproducible functionality. This technology not only overcomes key challenges in membrane protein preparation but also establishes a scalable, reproducible, and industry-ready technical foundation for basic research, drug discovery, and clinical applications.

VLP and Nanodisc Membrane Protein Product Catalogue
www.abnova.com/en-global/product/specializedproductsearch/vlpnanodisc

日

(4) circRNA Sponge

circRNA Sponge is an artificial circular non-coding RNA that integrates multiple miRNA-targeting sequences, thereby enhancing the range of miRNA adsorption. Compared with linear RNA sponges, circRNA Sponge lacks 5′ and 3′ ends, exhibits low immunogenicity without the need for nucleoside modification, and is resistant to exonuclease degradation, thereby improving adsorption stability and efficiency. circRNA Sponge also overcomes the toxicity concerns associated with traditional anti-miRNA oligonucleotides (AMOs) and the dose limitations of plasmid-based circRNA Sponge. Abnova has successfully overcome challenges related to production capacity and purity and has validated the biological activity of circRNA Sponge in cell-based in vivo assays. This stable and highly efficient circRNA Sponge product line supports miRNA research in both in vitro and in vivo assays.

circRNA Sponge Service :
www.abnova.com/en-global/services/circrna_sponges

(4) RNAutomation™ mRNA Upgrades :

With the rapid emergence of mRNA vaccines and RNA therapeutics, the demand for RNA in vitro transcription (IVT) technologies continues to grow. However, conventional manual workflows are prone to RNA degradation, batch-to-batch variability, and operator-induced errors, which reduce reproducibility and significantly increase development costs and time pressure. To meet the need for high efficiency, stability, and reproducibility, automation techniques have become a key driver in advancing RNA research and application development. Since 2019, Abnova has been dedicated to developing RNA IVT platforms. Building on its long-accumulated capacity in RNA cancer vaccine development, Abnova has launched the world’s first integrated RNA automated production platform—RNAutomation™ mRNA Upgrades System. With Opentrons Flex™ as its core, the system integrates pre-validated software, reagents, and consumables from Abnova, enabling automated execution of IVT, capping, oligo(dT) purification, and cellulose purification processes. It consistently produces mRNA with high uniformity and reproducibility, suitable for pharmacological evaluation, dose optimization, and preclinical research.

Regarding the hardware configuration of RNAutomation™ mRNA Upgrades System, in addition to the standard Opentrons Flex™ components—including thermal cyclers, temperature modules, heater-shaker modules, magnetic modules, and high-precision liquid-handling modules—it also introduces Abnova’s self-developed vacuum suction module. This module enables the purification process of cellulose to effectively remove double-stranded RNA (dsRNA) impurities commonly seen during mRNA production, thereby improving mRNA purity and quality.

Through default automated software procedures combined with pre-validated reagents and consumables, the system enables the automatic completion of IVT, capping, oligo(dT), and cellulose purification processes. Abnova also provides customized process software development and validation services to meet diverse customer requirements in process design and production scale.

For research institutions that have already deployed the Opentrons Flex™ system, a complete mRNA automated production workflow can be rapidly established by adopting Abnova's pre-validated software and self-developed vacuum suction module solely, thereby significantly lowering the barrier to system deployment.

The launch of the RNAutomation™ mRNA Upgrades System enables researchers to rapidly enter the field of RNA research and development. Its applications include pharmacological and dose optimization, preclinical GLP studies, and toxicological evaluation. It is broadly applicable across various research and development areas, including next-generation RNA vaccines, biologics, immunotherapies, and cell and gene therapy.

This platform not only demonstrates Abnova's innovation in RNA automated manufacturing technologies but also further establishes its professional leadership in platform-based RNA research and development.

RNAutomation™ mRNA Upgrades System :
www.abnova.com/en-global/systems-automations/detail/m0028
RNAutomation™ Service :
www.abnova.com/en-global/services/rnautomation_service
RNAutomation™ Videos :
www.abnova.com/en-global/support/abvideo/system/content/rnautomation_mrna_service_video

III. The effect of external competition, the legal environment, and the overall business environment

1. External Competition:

In recent years, the health of humankind and the global economy have been impacted by the outbreak of various infectious diseases, leading to increasing attention to the biotechnology and medicine industry.

Various countries have introduced incentive policies, which will attract many competitors to join, but also promote the vigorous development of the biotechnology and medical industry, cultivating more outstanding talents, which is expected to contribute to the long-term development of the whole industry.

2. Legal Environment:

Abnova strictly controls product quality and has ISO9001 certification of Neihu Plant. In response to the needs of different products and countries, relevant laws and regulations of various countries shall be followed. Meeting the above specifications will increase the management and application costs, but at the same time, it can also guarantee product quality and improve customer recognition.

Overall Business Environment:

About 97% of Abnova's products are exported, and the main sales areas are America, Europe, Japan, etc. The transaction currency is mainly USD, followed by Euro. Since the recent uncertainty in the international political and economic situation, fluctuations in the US dollar exchange rate have had an impact on the Company, the financial department closely observes the exchange rate trend and timely assesses whether to conduct hedging derivative financial transactions to reduce the exchange rate risk.

In 2026, Abnova will adhere to the original intention of professionalism, focus, and quality, and continue to push itself for deeper technological innovation. Looking forward to the future, it may face variable operational opportunities and challenges. Abnova will continue to strengthen its competitive strength and accumulate more growth momentum to create better operating results.

Chairperson: Wilber Huang
General Manager: Jih Pei Ju
Accounting Officer: Chang Ya Ping

II. Corporate Governance Report

2.1 Information on the Directors, Supervisors and Management Team
2.1.1 Directors and Supervisors
1. Basic Information

2026/03/31

Title	Nationality/ Place of Incorporation	Name	Gender Age	Date Elected	Term (Years)	Date First Elected	Shareholding when elected		Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Experience (Education)	Other Position	Executives, Directors or Supervisors Who are Spouses or within Two Degrees of Kinship			Remark
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Chairman	U.S.A.	Wilber Huang	Male 59	2023.05.15	3	2011.06.17	3,651,144	6.03	3,651,144	6.03	—	—	—	—	Education: MD, Northwestern University Medical School Experience: 1. Chairman of Abnova (Taiwan) Corporation 2. Chairman of Citil Pharma Incorporated 3. Chairman of AxleBio Ventures 4. Chairman of Abnova USA Inc. 5. Chairman of Abnova Holding Corporation	1. Chairman of Abnova (Taiwan) Corporation 2.Chairman of Citil Pharma Incorporated 3. Chairman of AxleBio Ventures 4. Chairman of Abnova USA Inc. 5. Chairman of Abnova Holding Corporation	Chairman of Harmony Investment Co., Ltd.	Chiu Chi Ching	Spouse	None
Director	R.O.C.	Harmony Investment Co., Ltd.	—	2023.05.15	3	2003.11.28	2,448,294	4.04	2,448,294	4.04	—	—	—	—	N/A	N/A	None			None
		Representative Chiu Chi Ching	Female 54	2023.05.15	3	2012.12.14	—	—	—	—	—	—	—	—	Education: Bachelor's degree in Housing and Architecture, Japan Women's University Experience: 1. Chairman of Harmony Investment Co., Ltd. 2. Chairman of Lasertech Holding International Ltd. 3. Chairman of Attebury Investments International Ltd. 4. Supervisor of Pan Pacific Investment Corp. 5. Chairman of Bolster Pioneering Incorporated	1. Chairman of Harmony Investment Co., Ltd. 2. Chairman of Lasertech Holding International Ltd. 3. Chairman of Attebury Investments International Ltd. 4. Supervisor of Pan Pacific Investment Corp. 5. Chairman of Bolster Pioneering Incorporated	Chairman	Wilber Huang	Spouse	None

Title	Nationality/ Place of Incorporation	Name	Gender Age	Date Elected	Term (Years)	Date First Elected	Shareholding when elected		Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Experience ( Education)	Other Position	Executives, Directors or Supervisors Who are Spouses or within Two Degrees of Kinship			Remark
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Director	R.O.C.	Pan Pacific Investment Co., Ltd.	–	2023. 05.15	3	2023. 05.15	1,839,014	3.04	1,839,014	3.04	–	–	–	–	N/A	N/A	None			None
		Representative Jih Pei Ju	Female 47	2023. 05.15	3	2023. 05.15	86,188	0.14	86,188	0.14	–	–	–	–	Education: Master’s degree in Institute of Plant Biology, National Taiwan University Experience: President of Abnova (Taiwan) Corporation	President of Abnova (Taiwan) Corporation	None			None
Director	R.O.C.	China Wire & Cable Co., Ltd	–	2023. 05.15	3	2008. 02.29	1,037,017	1.71	1,037,017	1.71	–	–	–	–	N/A	N/A	None			None
		Representative Chen Yueh Hung	Male 61	2023. 05.15	3	2020. 06.19	–	–	–	–	–	–	–	–	Education: Bachelor’s degree, University of Toronto Experience: 1. Chairman of Kai Tse Co., Ltd. 2. Director of Great Universe Metal Building Materials Corp. 3. Director of Great Universe Enterprises Co., Ltd. 4. Director of Taiwan Sun Clutch Co., Ltd. 5. Supervisor of Great Universe Development Corp. 6. Deputy Chairman of LiBAiDAi Construction & Development Co., Ltd. 7. Director of Tai Hsu Construction & Development Co., Ltd. 8. Director of Yi De Xin Construction & Development Co., Ltd. 9. Director of Hung Kuan Ltd.	1. Chairman of Kai Tse Co., Ltd. 2. Director of Great Universe Metal Building Materials Corp. 3. Director of Great Universe Enterprises Co., Ltd. 4. Director of Taiwan Sun Clutch Co., Ltd. 5. Supervisor of Great Universe Development Corp. 6. Deputy Chairman of LiBAiDAi Construction & Development Co., Ltd. 7. Director of Tai Hsu Construction & Development Co., Ltd. 8. Director of Yi De Xin Construction & Development Co., Ltd. 9. Director of Hung Kuan Ltd.

Title	Nationality/ Place of Incorporation	Name	Gender Age	Date Elected	Term (Years)	Date First Elected	Shareholding when elected	Current Shareholding	Spouse & Minor Shareholding	Shareholding by Nominee Arrangement	Experience ( Education )	Other Position	Executives, Directors or Supervisors Who are Spouses or within Two Degrees of Kinship	Remark
Shares	%	Shares	%	Shares	%	Shares	%	Title	Name	Relation
Independent Director	R.O.C.	Cha Anna	Female 56	2023.05.15	3	2023.05.15	—	—	—	—	—	—	—	—
Bachelor’s degree in dance, Chinese Culture University
Experience:
1. Chairman of Rouge Creative Marketing Co.
2. Chairman of Chipcom International Co., Ltd.	1. Chairman of Rouge Creative Marketing Co.
2. Chairman of Chipcom International Co., Ltd.	None	None
Independent Director	R.O.C.	Ye Shao De	Male 58	2023.05.15	3	2017.06.23	—	—	—	—	—	—	—	—
Ph.D. in Medical Sciences, Taipei Medical University
1. Chief of Cancer Center, Taipei Medical University Hospital
2.Director, Prostate Center of Excellence, Taipei Medical University Hospital
3. Chief of Department of Urology, Chief of Outpatient Department, and Chief of Medical Affairs, Taipei Medical University Hospital	1.Chairman of Cancer Center, Taipei Medical University Hospital
2. Director, Prostate Center of Excellence, Taipei Medical University Hospital
3.Director of High Power Lighting Corporation
4.Supervisor of Ceres Biomedical Inc.	None	None
Independent Director	R.O.C.	Su Jin Jun	Male 56	2023.05.15	3	2017.06.23	—	—	—	—	—	—	—	—
PhD. in Business Administration Department, National Sun Yat – Sen University
1. Professor and Dean of School of International Business, TKK College, Xiamen University
2. Associate professor and Chairman of International Tourism and Hospitality Department, I-Shou University
3. Assistant Professor and Deputy Director of the Department of Business Administration, I-Shou University	Professor and Dean of School of International Business, TKK College, Xiamen University.	None	None

For directors and supervisors acting as the representatives of institutional shareholders, indicate the names of the institutional shareholders, and the names of its 10 largest shareholders and the holding percentage of each.

Table1: Major shareholders of the institutional shareholders
2026/03/31

Name of Institutional Shareholders	Major Shareholders
Harmony Investment Co., Ltd.	Attebury Investments International Ltd. (100%)
Pan Pacific Investment Co., Ltd.	Lasertech Holding International Ltd. (96%) • Harmony Investment Co., Ltd. (4%)
China Wire & Cable Co., Ltd	Great Universe Metal Building Materials Corp. (9.92%) • Great Universe Development Corp. (7.17%) • Chen Ho Yuan (6.66%) • Cathay United Bank entrusted with the Chen Ho Yuan Trust Property Special Account (5.84%) • Taiwan Sun Clutch Co., Ltd (5.64%) • Chen Yueh Hung (4.90%) • Chen Liang Yin (4.42%) • Kai Tse Co., Ltd. (4.33%) • Cathay United Bank entrusted with the Lu Wen Ling Trust Property Special Account (4.17%) • Cathay United Bank entrusted with the Chen Hsu Li Ming Trust Property Special Account (3.54%)

Note 1: For directors and supervisors acting as the representatives of institutional shareholders, it shall indicate the names of the institutional shareholders.
Note 2: It shall fill in the names of the institutional shareholders, which are the major shareholders (the 10 largest shareholders) and their shareholdings. If any of those 10 largest shareholders are institutional shareholders, it shall be filled in Table 2.
Note 3: For non-institutional shareholders, it shall disclose the names of the shareholders and their shareholdings, which are the names of investors or donors and their contribution or donation ratios.

Table2: Major shareholders of the Company's major institutional shareholders
2026/03/31

Name of Institutional Shareholders	Major Shareholders
Attebury Investments International Ltd.	Chiu Chi Ching (100%)
Lasertech Holding International Ltd.	Chiu Chi Ching (100%)
Great Universe Metal Building Materials Corp.	Chen Ho Yuan(51.76%) • Chen Yueh Hung (39.50%) • Chen Hsu Li Ming(3.79%) • Chen Liang Yin (2.32%) • Chen Chao Jung (2.32%) • Tai Chung Chieh (0.31%)
Great Universe Development Corp.	China Wire & Cable Co., Ltd (93.26%) • Chen Ho Yuan (0.77%) • Chen Hsu Li Ming (0.93%) • Chen Yueh Hung (3.06%) • Chen Chao Jung (1.11%) • Chen Liang Yin (0.87%)
Taiwan Sun Clutch Co., Ltd	China Wire & Cable Co., Ltd (96.94%) • Chen Ho Yuan (1.19%) • Chen Hsu Li Ming (0.50%) • Chen Yueh Hung (1.17%) • Chen Chao Jung (0.10%) • Chen Liang Yin (0.10%)
Kai Tse Co., Ltd.	China Wire & Cable Co., Ltd (99.95%) • Chen Yueh Hung (0.03%) • Chen Ho Yuan (0.02%)

Note 1: If the major shareholder listed in Table 1 is an institutional shareholder, it shall indicate the names of the institutional shareholders.
Note 2: It shall fill in the names of the institutional shareholders, which are the major shareholders (the 10 largest shareholders) and their shareholdings.
Note 3: For non-institutional shareholders, it shall disclose the names of the shareholders and their shareholdings, which are the names of investors or donors and their contribution or donation ratios.

Disclosure of Professional Qualifications of Directors and Independence Analysis of Independent Directors:

| Criteria
Name | Professional Qualifications and Experience | Status of Independence | Number of Other Public Companies in Which the Individual is Concurrently Serving as an Independent Director |
| --- | --- | --- | --- |
| Wilber Huang | 1. Professional Qualifications
• Holds a medical license in the US
• Expertise: Board leadership experience, global market experience, risk and regulatory knowledge, relevant industry experience (healthcare/biotech/marketing).
2. Experiences:
• Academic qualification: Northwestern University Medical School (Ph.D)
• Chairman of Abnova (Taiwan) Corporation
• Director of Citil Pharma Incorporated
• Chairman of AxleBio Ventures
• Chairman of Abnova USA Inc.
• Chairman of Abnova Holding Corporation | There are no circumstances listed in Article 30 of the Company Act. | 0 |
| Harmony Investment Co., Ltd.
Representative: Chiu Chi Ching | 1. Professional Qualifications
• N1 level Japanese proficiency
• Expertise: Board leadership experience, fluent in Japanese, risk and regulatory knowledge, relevant industry experience (architectural design/ investment).
2. Experiences:
• Academic qualification: Bachelor Degree in Housing and Architecture, Japan Women's University
• Chairman of Harmony Investment Co., Ltd.
• Director of Lasertech Holding International Ltd.
• Director of Attebury Investments International Ltd.
• Supervisor of Pan Pacific Investment Corp.
• Chairman of Bolster Pioneering Incorporated | There are no circumstances listed in Article 30 of the Company Act. | 0 |
| Pan Pacific Investment Co., Ltd.
Representative: Jih Pei Ju | 1. Professional Qualifications
• Expertise: R&D experience, risk and regulatory knowledge, relevant industry experience (healthcare/biotech)
2. Experiences:
• Academic qualification: Master's in plant science, National Taiwan University
• President of Abnova (Taiwan) Corporation | There are no circumstances listed in Article 30 of the Company Act. | 0 |
| China Wire & Cable Co., Ltd
Representative: Chen Yueh Hung | 1. Professional Qualifications
• Expertise: Global market experience, risk and regulatory knowledge, relevant industry experience (construction/marketing)
2. Experiences:
• Academic qualification: Bachelor's degree, University of Toronto
• Chairman of Kai Tse Co., Ltd.
• Director of Great Universe Metal Building Materials Corp.
• Director of Great Universe Enterprises Co., Ltd.
• Director of Taiwan Sun Clutch Co., Ltd.
• Supervisor of Great Universe Development Corp.
• Deputy Chairman of LiBAiDAi Construction & Development Co., Ltd.
• Director of Tai Hsu Construction & Development Co., Ltd.
• Director of Yi De Xin Construction & Development Co., Ltd.
• Director of Hung Kuan Ltd. | There are no circumstances listed in Article 30 of the Company Act. | 0 |

11 -

Criteria	Professional Qualifications and Experience	Status of Independence	Number of Other Public Companies in Which the Individual is Concurrently Serving as an Independent Director
Name
Cha Anna	1. Professional Qualifications
• Expertise: Marketing planning, corporate management, risk and regulatory knowledge, relevant industry experience (business/marketing/ operation management)
2. Experiences:
• Bachelor’s degree in dance, Chinese Culture University
• Chairman of Rouge Creative Marketing Co.
• Chairman of Chipcom International Co., Ltd.	1. Serve as an independent director of the Company
2. Met the following independence criteria:
(1) A natural person, the person's spouse, relative within the second degree of kinship do not serve as a director, supervisor or an employee of the Company’s affiliates
(2) Does not holds any of shares of the Company
(3) Not a director, supervisor or an employee of a company that has specific relationship with the Company
(4) Not a director, supervisor, or employee of a company of which the majority of board seats or voting shares is controlled by a company that also controls the same of the company
(5) Not a director, supervisor, or employee of a company of which the chairman or President (or equivalent) themselves or their spouse also serve as the company’s chairman or President (or equivalent)
(6) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company	0
Ye Shao De	1. Professional Qualifications
• Holds a medical license in the R.O.C
• Expertise: Clinical medicine experience, risk and regulatory knowledge, relevant industry experience (healthcare/biotech/marketing)
2. Experiences:
• Academic qualification: Ph.D. in Medical Sciences, Taipei Medical University
• Chief of Cancer Center, Taipei Medical University Hospital
• Director, Prostate Center of Excellence, Taipei Medical University Hospital
• Chief of Department of Urology, Chief of Outpatient Department, and Chief of Medical Affairs, Taipei Medical University Hospital	1. Serve as an independent director of the Company
2. Met the following independence criteria:
(1) A natural person, the person's spouse, relative within the second degree of kinship do not serve as a director, supervisor or an employee of the Company’s affiliates
(2) Does not holds any of shares of the Company
(3) Not a director, supervisor or an employee of a company that has specific relationship with the Company
(4) Not a director, supervisor, or employee of a company of which the majority of board seats or voting shares is controlled by a company that also controls the same of the company
(5) Not a director, supervisor, or employee of a company of which the chairman or President (or equivalent) themselves or their spouse also serve as the company’s chairman or President (or equivalent)
(6) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company	0
Su Jin Jun	1. Professional Qualifications
• Possesses expertise in business and financial accounting, and holds qualifications as a university professor
• Ministry of Economic Affairs iPAS Net Zero Carbon Planning Professional Certification
• Expertise: Business, corporate management, financial accounting, risk and regulatory knowledge, relevant industry experience (business/ corporate management/ education).
2. Experiences:
• Academic qualification: PhD. in Business Administration Department, National Sun Yat-Sen University (Accounting Regulatory Department)
• Professor and Dean of School of International Business, TKK College, Xiamen University
• Associate professor and Chairman of International Tourism and Hospitality Department, I-Shou University
• Assistant Professor and Deputy Director of the Department of Business Administration, -Shou University	1. Serve as an independent director of the Company
2. Met the following independence criteria:
(1) A natural person, the person's spouse, relative within the second degree of kinship do not serve as a director, supervisor or an employee of the Company’s affiliates
(2) Does not holds any of shares of the Company
(3) Not a director, supervisor or an employee of a company that has specific relationship with the Company
(4) Not a director, supervisor, or employee of a company of which the majority of board seats or voting shares are controlled by a company that also controls the same of the company
(5) Not a director, supervisor, or employee of a company of which the chairman or President (or equivalent) themselves or their spouse also serve as the company’s chairman or President (or equivalent)
(6) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company	0

12 -

The diversity policy and status of independence of the board of directors:

(1) The diversity policy of the board of directors:

I. Pursuant to Article 20 of the "Corporate Governance Best Practice Principles" of the Company, the board of directors of the Company shall direct company strategies, supervise the management, and be responsible to the company and shareholders. The various procedures and arrangements of its corporate governance system shall ensure that, in exercising its authority, the board of directors complies with laws, regulations, its articles of incorporation, and the resolutions of its shareholders meetings. The structure of the Company's board of directors shall be determined by choosing an appropriate number of board members, in consideration of its business scale, the shareholdings of its major shareholders, and practical operational needs.

The composition of the board of directors shall be determined by taking diversity into consideration. The company has a total of 7 board seats, with 3 seats held by women (43%) and 4 seats held by men (57%). Each gender accounts for at least 1/3 (inclusive) of the board seats. It is advisable that directors concurrently serving as company officers do not exceed one-third of the total number of the board members, and that an appropriate policy on diversity based on the Company's business operations, operating dynamics, and development needs be formulated and include, without being limited to, the following two general standards:

Basic requirements and values: Gender, age, nationality, and culture, etc.
Professional knowledge and skills: A professional background (e.g., law, accounting, industry, finance, marketing, technology), professional skills, and industry experience, etc.

All members of the board have the knowledge, skills, and experience necessary to perform their duties.

To achieve the ideal goal of corporate governance, the board of directors shall possess the following abilities:

(i) Ability to make operational judgments.
(ii) Ability to perform accounting and financial analysis.
(iii) Ability to conduct management administration.
(iv) Ability to conduct crisis management.
(v) Knowledge of industry.
(vi) An international market perspective.
(vii) Ability to lead.
(viii) Ability to make policy decisions.

II. Article 17 of the Company's "Articles of Incorporation" specified that the election of directors shall adopt a candidate nomination system. The "Procedures for Election of Directors" stated that the composition of the board of directors shall be determined by taking diversity into consideration, directors and independent directors shall have the qualifications and capabilities as required by laws and regulations, with a view to ensuring an effective selection of appropriate director candidates. The quality of decision-making will be enhanced with the diverse viewpoints and insights of the board of directors, which is beneficial to the Company's shareholders and stakeholders.

III. At the same time, the "Rules for Performance Evaluation of Board of Directors" of the Company specified that the criteria for evaluating the performance of the board of directors, including alignment of the goals and missions of the Company, awareness of the duties of a director, participation in the operation of the Company, management of internal

13 -

relationship and communication, the director's professionalism and continuing education, internal control, and ability to express specific opinions, etc., with a view to ensuring an effective operation of board of directors. The performance evaluations of directors will be conducted annually, which will serve as a reference for director selection in the future.

The 9th Session of the Board of Directors of the Company is made up of 7 directors, including 4 directors and 3 independent directors, covering different nationalities, genders, and ages. The areas of expertise covering different fields, such as biotechnology, medicine, financial accounting, technology, operation management, etc., achieving the goal of diversification. The key areas of diversity are described as follows:

Key areas of diversity / Name of directors	Directors				Independent Directors
		Wilber Huang	Chiu Chi Ching	Chen Yueh Hung	Jih Pei Ju	Cha Anna	Ye Shao De	Su Jin Jun
Basic requirements and values	Gender	Male	Female	Male	Female	Female	Male	Male
	Nationality	USA	ROC	ROC	ROC	ROC	ROC	ROC
	Age range	51-60	51-60	61-70	41-50	51-60	51-60	51-60
	Concurrently serving as employee of the Company	None	None	None	Yes	None	None	None
	Tenure of board of directors	9 years or more	9 years or more	3-9 years	Less than 3 years	Less than 3 years	3-9 years	3-9 years
Industry experience	Medical and biotechnology	V			V		V
	Operation management	V	V	V	V	V	V	V
	Financial accounting							V
Professional knowledge and capabilities	Able to make operational judgments	V	V	V	V	V	V	V
	Able to perform accounting and financial analysis							V
	Able to conduct management administration	V	V	V	V	V	V	V
	Able to conduct crisis management	V	V	V	V	V	V	V
	Biotech industry knowledge	V			V		V
	International market perspective	V	V	V	V	V	V	V
	Able to lead	V	V	V	V	V	V	V
	Able to make policy decisions	V	V	V	V	V	V	V

Individual Director Diversity Quantitative Data Description:

Percentage of directors who are also employees	14%
Percentage of Independent Directors	43%
Percentage of female directors	43%
Percentage of directors with medical and biotechnology experience	43%
Percentage of directors with financial accounting industry experience	14%
Age distribution of directors: 41 - 50 years old	14%
51 - 60 years old	72%
61-70 years old	14%

The specific goals of diversification of the board of directors and its attainment status

The management goal of diversification of board of directors	Attainment status
Emphasis on gender equality on the board of directors, with the Board of Directors composing at least one director of a different gender.	100%. At present, there are 3 female directors and 4 male directors, with each gender representing more than 1/3 of the total board seats.
The board of directors requires at least 1 director with a medical and biotechnology related background in response to the Company's operational and drug development needs.	100%. At present, there are 3 directors with backgrounds in medical and biotechnology, accounting for 43% of the total board seats, of which 1 director is currently a medical practitioner in Taiwan.
Taking the independence status of the independent directors into consideration, their consecutive terms shall not exceed 3 terms.	100%. All 3 independent directors of the Company have not exceeded 3 consecutive terms.
Strengthening corporate governance, achieving over 1/3 representation of independent directors on the board.	100%. At present, there are 3 independent directors, accounting for 43% of the total board seats.

2.1.2 Information on the company's President, assistant Presidents, Senior managers, and the chiefs of all the company's divisions and branch units
March 31, 2026

Title	Nationality	Name	Gender	Date of election (Assumption of office)	Shareholding		Spouse & Minor Shareholding Shareholding		Shareholding in the name of others Shareholding		Main Experience (Academic Qualification)	Managerial personnel who is the spouse or relative within the second degree of kinship
					Shares	%	Shares	%	Shares	%		Title	Name	Relationship
President	ROC	Jih Pei Ju	Female	2023.02.24	86,188	0.14%	—	—	—	—	1. Master in Plant Science, National Taiwan University
2. President of Abnova (Taiwan) Corporation	None	None			None
Senior Manager	ROC	Zheng Mei Hui	Female	2010.11.03	16,388	0.03%	—	—	—	—	1. International Trade Program, Hsing Wu High School
2. Executive Assistant to the CEO of Momentum Digital Technology Co., Ltd.	1. Supervisor of Harmony Investment Co., Ltd.
2. Director of Pan Pacific Investment Corp.	None			None
Senior Manager	ROC	Chen Si Xian	Male	2013.08.01	4,388	0.01%	—	—	—	—	1. Master in Agricultural Chemistry, National Taiwan University
2. Senior Manager of System R&D Department of Abnova (Taiwan) Corporation	None	None			None
Senior Manager	ROC	Tung I Ling	Female	2015.09.01	—	—	—	—	—	—	1. Master in Science and Technology Management, National Taiwan Normal University
2. Audit Assistant Manager of Radium Life Tech Co., Ltd.
3. Executive Assistant to the Chairman Office of Abnova (Taiwan) Corporation	None	None			None
Senior Manager	ROC	Zhou Yun Jin	Male	2015.09.01	129	—	129	—	—	—	1. Master in Biology, Fu Jen Catholic University
2. Senior Manager of Bio-Reagent Division, Zhongli of Abnova (Taiwan) Corporation	None	None			None
Senior Manager	ROC	Chang Ya Ping	Female	2019.11.13	—	—	—	—	—	—	1. Department of Accounting, Tamkang University
2. Manager of KPMG Taiwan	None	None			None

2.2 Remuneration of Directors, Independent Directors, Supervisors, President, and Vice Presidents
2.2.1 Remuneration of Directors, Independent Directors, Supervisors, President, and Vice Presidents
1. Remuneration of Directors and Independent Directors in the most recent fiscal year (2025):

Unit: NT$ thousands

Title	Name	Remuneration of Directors							Amount & Ratio % of total A, B, C, and D to Net Income (Note)	Relevant Remuneration Received by Directors Who are Also Employees							Amount & Ratio % of total A, B, C, D, E, F, and G to Net Income (Note)	Remuneration from ventures other than subsidiaries or from the parent company
		Remuneration (A)		Severance Pay (B)		Directors Compensation (C)		Allowances (D)			Salary, Bonuses, and Allowances (E)		Severance Pay (F)		Employee Compensation (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	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	All companies in the consolidated financial statements	The company			All companies in the consolidated financial statements
																Cash	Stock		Cash	Stock
Chairman	Wilber Huang	240	240	0	0	0	0	5,951	5,951	6,191 (542.59%)	6,191 (542.59%)	0	0	0	0	0	0-	0	6,191 (542.59%)	6,191 (542.59%)	None
Director	Harmony Investment Co., Ltd. Representative: Chiu Chi Ching	240	240	0	0	0	0	0	0	240 (21.03%)	240 (21.03%)	0	0	0	0	0	0	0	240 (21.03%)	240 (21.03%)	None
Director	China Wire & Cable Co., Ltd Representative: Chen Yueh Hung	240	240	0	0	0	0	0	0	240 (21.03%)	240 (21.03%)	0	0	0	0	0	0	0	240 (21.03%)	240 (21.03%)	None
Director	Pan Pacific Investment Corp. Representative: Jih Pei Ju	240	240	0	0	0	0	0	0	240 (21.03%)	240 (21.03%)	1,791	1,791	0	0	00	0	0	2,031 (178.00%)	2,031 (178.00%)	None
Independent Director	Cha Anna	360	360	0	0	0	0	0	0	360 (31.54%)	360 (31.54%)	0	0	0	0	0	0	0	360 (31.54%)	360 (31.54%)	None
Independent Director	Ye Shao De	360	360	0	0	0	0	0	0	360 (31.54%)	360 (31.54%)	0	0	0	0	0	0	0	360 (31.54%)	360 (31.54%)	None
Independent Director	Su Jin Jun	360	360	0	0	0	0	0	0	360 (31.54%)	360 (31.54%)	0	0	0	0	0	0	0	360 (31.54%)	360 (31.54%)	None

(Note) The Company incurred a net loss after tax of NT$1,141 thousand for the fiscal year 2025. This figure represents the percentage of net loss after tax.
1. Please describe the policy, system, standard, and structure of remuneration to independent directors, and the correlation between duties, risk, and time input with the amount of remuneration:
(1) According to Article 26 of the Company's Articles of Association, "the directors of the Company may get paid monthly, the amount of which shall be determined by the Board of Directors in accordance with the normal level of the industry". The Company has set reasonable remuneration for independent directors different from that of directors.
(2) Depending on the level of involvement, contribution value, responsibilities, and risks borne by individual directors in the Company's operations, and considering industry standards, the Board of Directors has decided the following: a director may receive a monthly remuneration of NT$20,000; meanwhile, an independent director is entitled to a higher-than-director monthly remuneration in the amount of NT$30,000, owing to their additional dedication of time and effort on the reviews in committee meetings as a part of their concurrent roles as members of the Company's remunerations committee, audit committee and risk management committee.
(3) If there is a profit for the Company in a year, the Company shall, in accordance with Article 24 of the Articles of Incorporation, cover the accumulated losses from preceding years. If there is still a profit after deducting the profit before the distribution of employee remuneration and directors' remuneration from the annual pre-tax profit, no less than $1\%$ shall be allocated for employee remuneration (among which a portion no less than $0.5\%$ of the said profit shall be distributed to non-executive employees) and no more than $3\%$ for directors' remuneration.

The correlation between remuneration paid to directors and performance review results:

(1) Remuneration: Based on the individual director's level of involvement in the company's operations, contribution value, responsibilities, and risks, the Board of Directors will determine the compensation in consideration of industry standards

(2) Directors' Compensation: According to Article 24 of the Company's Articles of Incorporation, the allocation criteria are based on the director's attendance rate and continuing education hours, and in accordance with the Company's "Board of Directors Performance Evaluation Procedures," each director (including independent directors) conducts a self-assessment on various aspects such as their understanding of the company's goals and tasks, involvement in operations, internal relationship management and communication, professional development, internal controls, and other duties. The performance evaluation results from the 2025 fiscal year, based on the self-assessment of the board members, showed a score range of 92-95 points. The board members demonstrated a solid understanding and commitment to the company's operations and fulfilled the director's duties effectively. As deliberated by the Remuneration Committee and resolved by the Board of Directors on February 25, 2026, the Company reported no profit for fiscal year 2025; consequently, no directors' remuneration shall be distributed.

(3) Allowances: The Chairman's allowance refers to the monthly salary and annual bonus received by the Chairman for supervising the company's operational management. The amount is determined annually, subject to review by the Compensation Committee and approval by the Board of Directors.

In addition to the above remuneration, director remuneration shall be disclosed as follows when received from companies included in the consolidated financial statements in the most recent year to compensate directors for their services, such as being independent contractors.: None
18 -

Range of Remuneration

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 (I)
Less than NT$ 1,000,000	Harmony Investment Co., Ltd.
Representative: Chiu Chi Ching, China Wire & Cable Co., Ltd
Representative: Chen Yueh Hung, Pacific Investment Co., Ltd.
Representative: Jih Pei Ju	Harmony Investment Co., Ltd.
Representative: Chiu Chi Ching, China Wire & Cable Co., Ltd
Representative: Chen Yueh Hung, Pan Pacific Investment Co., Ltd.
Representative: Jih Pei Ju	Harmony Investment Co., Ltd.
Representative: Chiu Chi Ching, China Wire & Cable Co., Ltd
Representative: Chen Yueh Hung	Harmony Investment Co., Ltd.
Representative: Chiu Chi Ching, China Wire & Cable Co., Ltd
Representative: Chen Yueh Hung
NT$1,000,000 ~ NT$1,999,999	-	-	-	-
NT$2,000,000 ~ NT$3,499,999	-	-	Pan Pacific Investment Co., Ltd.
Representative: Jih Pei Ju	Pan Pacific Investment Co., Ltd.
Representative: Jih Pei Ju
NT$3,500,000 ~ NT$4,999,999	-	-	-	-
NT$5,000,000 ~ NT$9,999,999	Wilber Huang	Wilber Huang	Wilber Huang	Wilber Huang
NT$10,000,000 ~ NT$14,999,999	-	-	-	-
NT$15,000,000 ~ NT$29,999,999	-	-	-	-
NT$30,000,000 ~ NT$49,999,999	-	-	-	-
NT$50,000,000 ~ NT$99,999,999	-	-	-	-
Greater than or equal to NT$100,000,000	-	-	-	-
Total	4	4	4	4
Range of Remuneration	Name of Independent Directors
---	---	---	---	---
	Total of (A+B+C+D)		Total of (A+B+C+D+E+F+G)
	The company	Companies in the consolidated financial statements	The company	Companies in the consolidated financial statements (I)
Less than NT$ 1,000,000	Cha Anna, Ye Shao De, Su Jin Jun	Cha Anna, Ye Shao De, Su Jin Jun	Cha Anna, Ye Shao De, Su Jin Jun	Cha Anna, Ye Shao De, Su Jin Jun
NT$1,000,000 ~ NT$1,999,999	-	-	-	-
NT$2,000,000 ~ NT$3,499,999	-	-	-	-
NT$3,500,000 ~ NT$4,999,999	-	-	-	-
NT$5,000,000 ~ NT$9,999,999	-	-	-	-
NT$10,000,000 ~ NT$14,999,999	-	-	-	-
NT$15,000,000 ~ NT$29,999,999	-	-	-	-
NT$30,000,000 ~ NT$49,999,999	-	-	-	-
NT$50,000,000 ~ NT$99,999,999	-	-	-	-
Greater than or equal to NT$100,000,000	-	-	-	-
Total	3	3	3	3

The remuneration paid to supervisors in the most recent fiscal year (2025): (Not applicable)

The Company has set up an Audit Committee on June 23, 2017, to replace the functions of the supervisors.

20 -

3. The remuneration paid to President and Vice Presidents in the most recent fiscal year (2025):

Unit: NT$ thousands

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 (%)(Note2)		Remuneration from ventures other than subsidiaries or from the parent company
		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 consolidated financial statements
								Cash	Stock	Cash	Stock
President	Jih Pei Ju	1,651	1,651	0	0	140	140	0	0	0	0	(156.97%)	(156.97%)	None

Note 1: The Company does not have a Vice President or any other position of equivalent rank.
Note 2: The Company incurred a net loss after tax of NT$1,141 thousand for the fiscal year 2025. This figure represents the percentage of net loss after tax.

Range of Remuneration

Range of Remuneration	Name of President and Vice Presidents
	The company	Companies in the consolidated financial statements (E)
Less than NT$ 1,000,000	-	-
NT$1,000,000 ~ NT$1,999,999	Jih Pei Ju	Jih Pei Ju
NT$2,000,000 ~ NT$3,499,999	-	-
NT$3,500,000 ~ NT$4,999,999	-	-
NT$5,000,000 ~ NT$9,999,999	-	-
NT$10,000,000 ~ NT$14,999,999	-	-
NT$15,000,000 ~ NT$29,999,999	-	-
NT$30,000,000 ~ NT$49,999,999	-	-
NT$50,000,000 ~ NT$99,999,999	-	-
Greater than or equal to NT$100,000,000	-	-
Total	1	1

4. Names and acquisition status of managerial personnels who have acquired new restricted employee shares: The Company did not distribute employees' compensation for the year 2025.

2.2.2 Separately compare and describe total remuneration, as a percentage of net income stated in the parent company only financial reports or individual financial reports, as paid by this company and by each other company included in the consolidated financial statements during the past 2 fiscal years to directors, supervisors, Presidents, and assistant Presidents, and analyze and describe remuneration policies, standards, and packages, the procedure for determining remuneration, and its linkage to operating performance and future risk exposure

The total remuneration paid to Directors, Supervisors, Presidents and Assistant Presidents in FY 2025 and 2024 were NT$9,782 thousand and NT$11,096 thousand, respectively, which accounted for (857.32)% and 18.01% of the net loss and net income of the Company, respectively
Remuneration policies, standards, and packages, the procedure for determining remuneration, and its link to operating performance and future risk exposure

(1) The remuneration paid to the directors of the Company includes remuneration and compensation to directors. The remuneration policies, standards, and packages are as follows:

I. Remuneration:

Pursuant to Article 26 of the Articles of Incorporation of the Company, directors will receive a monthly remuneration, and the amount of remuneration is determined based on the remuneration standards of the industry. The Company shall provide reasonable remuneration

for independent directors that may be different from directors.

Remuneration to each director is determined by the Board of Directors based on their respective involvement in the Company’s operations, contribution, responsibilities, and risks, as well as referring to the remuneration standards of the industry. Each regular director receives a monthly remuneration of NT$20,000. All independent directors are concurrently served as members of the Audit Committee and Remuneration Committee, considering their responsibilities to participate in committee meetings that require more time and effort; therefore, their remuneration is higher than directors, with each independent director receiving a monthly remuneration of NT$30,000.

II. Compensation to directors:

(2) The remuneration paid to the managerial personnel (at or above the level of Senior Manager) of the Company includes salary, year-end bonus, and employee compensation. The remuneration policies, standards and packages are as follows:

I. Salary, year-end bonus: Salary refers to the compensation employees receive for their work, which is determined based on the Company's employment rules, relevant regulations governing human resources such as job band, etc., at the time of appointment, and approved by the Remuneration Committee and the Board of Directors, and individual amounts are reviewed regularly every year. In accordance with the Company's work rules, if the Company makes profits after year-end settling, after paying tax, making up losses, and setting aside a legal reserve, the year-end bonus will be distributed prior to the Chinese New Year that would depend on the actual circumstances. The amount of year-end bonus for each managerial personnel will be reviewed by the Remuneration Committee and the Board of Directors at the end of each year.

II. For the compensation to employees, pursuant to Article 24 of the Articles of Incorporation of the Company: "If the Company makes profits (after deducting the pretax income for remuneration to employees and directors), it shall set aside not less than 1% of its annual profit to employees as a profit sharing (among which a portion no less than 0.5% of the said profit shall be distributed to non-executive employees) and not more than 3% as the compensation for directors". The provision rate will be reviewed by the Remuneration Committee and approved by the Board of Directors, as well as reported in the Shareholders' meeting. As the Company reported no profit for fiscal year 2025, consequently, no distribution of employee compensation.

(3) Procedure for determining remuneration:

I. The salary and compensation of directors and managerial personnel are regularly assessed based on the evaluation results according to the Company's "Rules for Performance Evaluation of Board of Directors" for directors and the "Performance Management Measures" applicable to managerial personnel and employees. In addition, the remuneration of the Chairman is linked to operating performance indicators and is submitted to the Remuneration Committee for review as well as presented to the Board of Directors for resolution. To fully

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assess the achievement of operating performance indicators, the performance evaluation criteria for the chairman is based on the Company's annual operational indicators, including operational management, financial results, corporate governance, etc. The assessment scope includes four main indicators: revenue, pre-tax net profit, research and development results, and corporate governance evaluation. The performance evaluation scope for the general manager includes various performance goals related to major job responsibilities, including operational management, supervision of budget plan execution, research and development progress management, internal control management, and implementation of quality assurance and management, etc.

II. The reasonableness of the remuneration for the directors and managers of the Company has been thoroughly reviewed by the Remuneration Committee and approved by the Board of Directors, with consideration given to the performance evaluation results. In addition, individual performance achievement rates and contributions to the Company are taken into account, along with an assessment of the Company's overall operating performance, future risks and development trends of the industry. The remuneration system is reviewed in a timely manner based on the actual operating conditions and relevant regulations. Moreover, after comprehensive consideration of current trends in corporate governance, reasonable remuneration is provided to achieve a balance between sustainable operation and risk control for the Company. The actual amount of remuneration for directors and managerial personnel for the FY 2025 is reviewed by the Remuneration Committee and approved by the Board of Directors.

(4) The correlation between remuneration paid to directors and operating performance and future risk exposure:

I. Remuneration to directors:

Based on the level of involvement, contribution value, responsibilities, and risks borne by individual directors in the operation of the Company, the Board of Directors shall consider the industry standards in determining their compensation.

II. Compensation to directors:

If the Company makes a profit in the current fiscal year, pursuant to Article 24 of the Articles of Incorporation of the Company, after deducting the pretax income for remuneration to employees and directors, and setting aside an amount to make up accumulated losses, if there is any remaining balance, the Company shall set aside not less than 1% of its annual profit to employees as a profit sharing (among which a portion no less than 0.5% of the said profit shall be distributed to non-executive employees) and not more than 3% as the compensation for directors. The distribution of director compensation is measured based on the statistics of the board meeting attendance rate and the duration of continuing education/training of all Directors, as well as the self-assessment of each director (including independent directors) based on the criteria such as understanding of the Company's goals and mission, awareness of director's duties, involvement in the Company's operations, management of internal relationship and communication, the director's professionalism and continuing knowledge development, internal controls, etc. in accordance with the "Rules for Performance Evaluation of Board of Directors" of the Company. Based on the 2025 self-assessment of the Company's board members, the evaluation result of the aforementioned assessment items showed that the directors have obtained 92-95 marks. All board members have a good understanding of the Company's operations and are committed to fulfilling their respective duties as directors. The remuneration paid to Directors, Supervisors, Presidents and Assistant Presidents was reviewed by the Remuneration Committee and passed by the board of directors on February 25, 2026. As the Company reported no profit for fiscal year 2025, consequently, no directors' remuneration shall be distributed.

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(5) The correlation between remuneration paid to managerial personnel and operating performance and future risk exposure:

For the remuneration payable to managerial personnel by the Company, in addition to evaluating the Company's overall operational performance, future business risks, and development trends, reasonable compensation is determined with reference to the individual's attendance and job performance. The Company conducts managerial personnel's performance review in January and July every year. The performance evaluation for managerial personnel includes three aspects: work attitude (including cooperation, learning ability, teamwork) with a weight of 40%, leadership and management (including cost control, communication and coordination, and work standards) with a weight of 30%, and job performance (including department management, planning and judgment ability, and decision-making and execution ability) with a weight of 30%. In addition, rewards and punishments are evaluated based on the special contributions or performance of employees. The performance review is divided into the following grades: A (90% or above) for outstanding performance, B (80%-90%) for good performance, C (70%-80%) for acceptable performance but requires improvement, and D (below 70%) for poor performance that fails to meet job requirements.

The Company is fully complied with the provisions of the "Remuneration Committee Charter": Regularly review the annual and long-term performance goals, as well as the policies, systems, standards, and structures of salary and remuneration for directors and managerial personnel. The compensation for each managerial personnel has been reviewed by the Remuneration Committee and the Board of Directors on November 11, 2025 and February 25, 2026. While the year-end bonus for each managerial personnel has been reviewed by the Remuneration Committee and the Board of Directors on November 11, 2025.

(6) Relationship between compensation of senior managers and ESG sustainability performance:

Senior managers refer to the President and Vice President or any other position with equivalent rank. The Company has only one President and does not have a Vice President or any other position of equivalent rank.

The compensation for managerial personnel is reviewed and approved by the Remuneration Committee and the Board of Directors of the Company. The general manager's performance evaluation is also included as part of the non-financial performance indicators for the current FY, serving as a linkage to the principles and calculation methods for incentive compensation and bonus payments., to motivate senior managers to prioritize long-term comprehensive performance, thereby achieving sustainable operation.

President performance indicators - Sustainable development performance (15% weighing), Sustainability performance evaluation items include: (1) Achievement rate of sustainability issue (including environmental climate change, social, and corporate governance) project implementation (e.g., progress in greenhouse gas inventory and verification projects, progress in preparing sustainability reports, achievement of consolidated company carbon reduction targets, achievement of consolidated company water reduction targets, achievement of consolidated company waste reduction targets, etc.); (2) ESG-related evaluation scores (e.g., corporate governance evaluation ranking, EcoVadis rating, etc.); and (3) Company's performance in compliance with laws and regulations (no violations of environmental, human rights, corporate governance, and other regulations resulting in penalties). The implementation of sustainability objectives will be linked to senior managers' compensation, enhancing their focus and responsibility on this matter, and effectively promoting sustainable development.

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2.3 Corporate Governance

2.3.1 Board of Directors and Performance Evaluation of the Board of Directors

A total of 4(A) meetings of the Board of Directors were held in the previous period. The attendance of director and supervisor were as follows:

Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%) (B/A)	Remarks
Chairman	Wilber Huang	4	0	100%	None
Director	Harmony Investment Co., Ltd.
Representative: Chiu Chi Ching	4	0	100%	None
Director	China Wire & Cable Co., Ltd.
Representative: Chen Yueh Hung	3	0	75%	None
Director	Pan Pacific Investment Co., Ltd.
Representative: Jih Pei Ju	4	0	100%	None
Independent director	Cha Anna	4	0	100%	None
Independent director	Ye Shao De	4	0	100%	None
Independent director	Su Jin Jun	4	0	100%	None
Other mentionable items:
1. If any of the following circumstances occur, the dates of the meetings, sessions, contents of motion, all independent directors’ opinions and the company’s response should be specified: None
(1) Matters referred to in Article 14-3 of the Securities and Exchange Act.
(2) Other matters involving objections or expressed reservations by independent directors that were recorded or stated in writing require a resolution by the board of directors.
2. 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) Board Meeting of February 26, May 14, August 13, November 11, 2025
• Content of the motion: To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH.
• Directors who are abstaining from voting due to conflicts of interest: Wilber Huang, Chiu Chi Ching
• Reasons for abstention from voting due to conflicts of interest and voting: The Chairman, Wilber Huang is also concurrently served as a director of Abnova GmbH, and the Director, Chiu Chi Ching is the spouse of the Chairman, who shall be deemed to have a personal interest in the matter pursuant to Article 206 of the Articles of Incorporation, therefore they are abstaining from voting due to conflicts of interest. The motion is passed with no objection after the acting Chairman’s consultation by the remaining attending directors.
(2) Board Meeting of November 11, 2025
• Content of the motion: To discuss the proposal to provide a loan facility of NT$ 5 million to the German subsidiary, Abnova GmbH.
• Directors who are abstaining from voting due to conflicts of interest: Wilber Huang, Chiu Chi Ching
• Reasons for abstention from voting due to conflicts of interest and voting: The Chairman, Wilber Huang is also concurrently served as a director of Abnova GmbH, and the Director, Chiu Chi Ching is the spouse of the Chairman, who shall be deemed to have a personal interest in the matter pursuant to Article 206 of the Articles of Incorporation, therefore they are abstaining from voting due to conflicts of interest. The motion is passed with no objection after the acting Chairman’s consultation by the remaining attending directors.
(3) Board Meeting of November 11, 2025
• Content of the motion: To discuss the remuneration for the directors and managerial personnels for the year 2026.
• Directors who are abstaining from voting due to conflicts of interest: Jih Pei Ju
• Reasons for abstention from voting due to conflicts of interest and voting: The Director, Jih Pei Ju is also concurrently served as managerial personnel of the Company, who shall be deemed to have a personal interest in the matter pursuant to Article 206 of the Articles of Incorporation, therefore she is abstaining from voting due to conflicts of interest. The motion is passed with no objection after the acting Chairman’s consultation by the remaining attending directors.
(4) Board Meeting of February 25, 2026
• Content of the motion: To discuss the remuneration for the chairman and managerial personnels for the year 2026.
• Directors who are abstaining from voting due to conflicts of interest: Wilber Huang, Chiu Chi Ching, Jih Pei Ju
• Reasons for abstention from voting due to conflicts of interest and voting: The Chairman, Wilber Huang, and the director, Jih Pei Ju is also concurrently served as President are recipients of the remuneration, and the Director, Chiu Chi Ching is the spouse of the Chairman, who shall be deemed to have a personal interest in the matter pursuant to

Article 206 of the Articles of Incorporation, therefore they are abstaining from voting due to conflicts of interest. The motion is passed with no objection after the acting Chairman’s consultation by the remaining attending directors.

(5) Board Meeting of November 11, 2025

Content of the motion: To discuss the distribution of year-end bonuses for the managerial personnels for the year 2025.
Directors who are abstaining from voting due to conflicts of interest: Wilber Huang, Chiu Chi Ching, Jih Pei Ju
Reasons for abstention from voting due to conflicts of interest and voting: The Chairman, Wilber Huang, and the director, Jih Pei Ju is also concurrently served as President are recipients of the remuneration, and the Director, Chiu Chi Ching is the spouse of the Chairman, who shall be deemed to have a personal interest in the matter pursuant to Article 206 of the Articles of Incorporation, therefore they are abstaining from voting due to conflicts of interest. The motion is passed with no objection after the acting Chairman’s consultation by the remaining attending directors.
The implementation status of self-assessments of Board performance

In accordance with the "Rules for Performance Evaluation of Board of Directors" of the Company, the Board of Directors and the members of the functional committees will complete the performance review after the end of the assessment year and prior to the most recent regular Board meeting (as described below, including the period, methodology, criteria, and results). The summary of the performance review results has been submitted to the Remuneration Committee and the Board of Directors on February 25, 2026, prior to the regular Board of Directors meeting. The results of the performance evaluation of the Board of Directors were submitted to the competent authority within the time limit as required by laws and regulations.

(1) Scope of Evaluation: Board meeting

Evaluation frequency: Once a year
Evaluation period: 2025.1.1-2025.12.31
Evaluation method: Internal self-assessment of the Board of Directors

Evaluation content: Involvement in the Company’s operation, enhancement of the quality of the Board of Directors’ decision-making, composition and structure of Board of Directors, election of board members and continuing knowledge development, internal controls, etc.

Evaluation result: The score of self-assessment was 94 marks, with the lowest scoring items are the involvement and extent of participation in the Company’s operation.
Improvement plan: To contribute more effectively to the Board of Directors.

(2) Scope of Evaluation: Individual Board member

Evaluation frequency: Once a year
Evaluation period: 2025.1.1-2025.12.31
Evaluation method: Self-assessment of the Board members
Evaluation content: Understanding of the Company’s goals and mission, awareness of director’s duties, involvement in the Company’s operations, management of internal relationship and communication, the director's professionalism and continuing knowledge development, internal controls, etc.
Evaluation result: The score of self-assessment was 92-95 marks, with the lowest scoring item is the involvement in the Company’s operation.
Improvement plan: The Company will strengthen the commitment of Board members to the Board of Directors and reduce the number of directors who concurrently serve as supervisors.

(3) Scope of Evaluation: Individual Remuneration Committee member

Evaluation frequency: Once a year
Evaluation period: 2025.1.1-2025.12.31
Evaluation method: Self-assessment of the functional committee members
Evaluation content: Involvement in the Company’s operation, awareness of the Remuneration Committees’ duties, enhancement of the quality of the Remuneration Committees’ decision-making, composition and election of Remuneration Committee members, internal controls, etc.
Evaluation result: The score of self-assessment was 93-95 marks, with the lowest scoring items are the involvement and extent of participation in the Company’s operation.
Improvement plan: Provide more specific improvement suggestions to the Remuneration Committee.

(4) Scope of Evaluation: Audit Committee Member

Evaluation frequency: Once a year
Evaluation period: 2025.1.1-2025.12.31
Evaluation method: Self-assessment of the functional committee members
Evaluation content: Involvement in the Company’s operation, awareness of the Audit Committees’ duties, enhancement of the quality of the Audit Committees’ decision-making, composition and election of Audit Committee members, internal controls, etc.
Evaluation result: The score of self-assessment was 94-96 marks, with the lowest scoring items are the involvement and extent of participation in the Company’s operation.
Improvement plan: To provide more professional and objective recommendations as a reference for the Board of Directors' decision-making.

(5) Scope of Evaluation: Risk Management Committee Members

Evaluation frequency: Once a year

Evaluation period: 2025.1.1-2025.12.31
Evaluation method: Self-assessment of the functional committee members
Evaluation content: Involvement in the Company's operation, awareness of the Risk Management Committees' duties, enhancement of the quality of the Risk Management Committees' decision-making, composition and election of Risk Management Committee members, internal controls, etc.
Evaluation result: The score of self-assessment was 93-95 marks, with the lowest scoring item being aware of the Risk Management Committee's responsibilities.
Improvement plan: More effectively assess the potential risks in the company's operations.

(6) Scope of Evaluation: Sustainable Development Committee Members

Evaluation frequency: Once a year
Evaluation period: 2025.1.1-2025.12.31
Evaluation method: Self-assessment of the functional committee members
Evaluation content: Involvement in the Company's operation, awareness of the Sustainable Development Committees' duties, enhancement of the quality of the Sustainable Development Committees' decision-making, composition and election of Sustainable Development Committee members, internal controls, etc.
Evaluation result: The score of self-assessment was 92-95 marks, with the lowest scoring item being aware of the Sustainable Development Committee's responsibilities.
Improvement plan: To provide more professional and objective recommendations as a reference for the Board of Directors' decision-making.
The goals of enhancing the functions of the Board of Directors in the current and the most recent fiscal year and its implementation status:

Year	Goals for enhancing the functions of the Board of Directors	Implementation status
FY 2025	1. The attendance rate of all directors present in person reached 85%	In 2025, the in-person attendance rate of all directors was 96%, which achieved the target.
	2. The in-person attendance rate of directors at the AGM reached 50% (including the convener of the Audit Committee)	In 2025, the in-person attendance rate of directors at the AGM was 71%, including the convener of the Audit Committee, which has achieved the target.
	3. To strengthen oversight functions and management mechanisms, various types of functional committees have been established to enhance the board's capabilities.	The Sustainable Development Committee was established on February 26, 2025. It is comprised of three independent directors, achieving the objective of expanding the range of functional committees
As for the date of the publication of this annual report	1. The in-person attendance rate of individual director reached 85%.	In 2026, as of the date of publication of the annual report, only one Board meeting has been convened, and calculation will be made at the end of the fiscal year.
	2. The in-person attendance rate of directors at the AGM reached 50% (including the convener of the Audit Committee)	The 2025 AGM is scheduled for May 29, 2026; hence it has not yet been held.

Succession planning for the board members and top management and its implementation status:

(1) Succession planning and operation for board members

For the succession planning for board, the selection of board members is based on the following standards:

A. Recognize the core values and business philosophy of the Company, possess the personality traits of integrity and accountability, and be able to provide the professional expertise and experience required for the company's operations, and fulfill the duties and responsibilities of the Board of Directors.
B. The analysis of the overall competencies required for the Board of Directors is taken into consideration. It is expected that the addition of newly appointed members can still continue to provide a Board of Directors that is professional, harmonious, diverse, and lead the Company to grow steadily.
C. The qualifications of all director candidates must meet the requirements required by laws and regulations. The selection process must also comply with relevant regulations to ensure that the director's selection process can be effectively identified, and suitable new board members can be elected.

The Company has "Rules for Performance Evaluation of Board of Directors", where self-assessment will be regularly conducted every year based on the evaluation criteria such as understanding of the Company's goals and mission, awareness of director's duties, involvement in the Company's operations, management of internal relationship and communication, the director's professionalism and continuing knowledge development, internal controls, etc. in order to ensure effective operation of Board of Directors, and the performance review results are used to serve as a reference for the nomination and reappointment of directors.

Regarding the succession planning for the Board of Directors, as the term of the 9th Board is approaching expiration, the upcoming comprehensive re-election will continue to implement gender equality and board diversity, enriching the board with professional talents from various fields. The succession planning and operational status of the Board and key management were reported to the Board of Directors on November 11, 2025, as follows:

In response to board diversity and gender equality, and to strengthen the professional expertise required by the Board, the 10th Board of Directors will be comprised of members of different nationalities, ages, and genders. These members will possess professional competencies in business management, finance, accounting, and biotechnology/healthcare sectors relevant to the Company's industry, thereby effectively implementing the board diversity policy and achieving management objectives.

(2) Succession plan and operation for the top management

The top management of the Company is responsible for business management within the organization, achieving various financial objectives and executing operational development plans. In addition to possessing essential professional competency and experience, the values and personality traits of the top management must also meet the Company's business philosophy.

A. For the succession planning for the top management, potential candidates are selected, and they are given opportunities to expose themselves to different roles and responsibilities through appointment of acting managers, job rotation or promotion. Also, they are arranged to attend relevant important meetings, on-the-job training, practical workshops, etc. to gradually enhance their execution, management, decision-making, problem identification, and problem-solving skills, cultivating talents that are needed for the Company's long-term development. It can effectively enhance the succession abilities and shorten the time needed for adaptation during succession in accordance with the personal development plans.

B. The company has also completed the retirement succession plan - the Associate Director of the Laboratory Animal Department. This plan involves arranging for potential successors to attend weekly management meetings and various cross-departmental meetings. They continuously participate in annual training programs, covering key topics such as biotechnology expertise, quality management, regulatory compliance, fire drills, and other important subjects, to cultivate professional and qualified management talent. The succession plan is set with a preparation timeline of 1 to 3 years. The Associate Director of the Laboratory Animal Department officially retired on November 30, 2024, and the position was smoothly transitioned with effective handover of responsibilities and knowledge transfer, ensuring the successful implementation of the succession plan for key management personnel. The successor successfully assumed the designated role in 2025, effectively fulfilling the succession plan for key management. Moving forward, the Company will continue to implement and refine succession planning for its senior management team to ensure long-term governance stability.

2.3.2 Audit Committee

A total of 4(A) Audit Committee meetings were held in the previous period. The attendance of the independent directors was as follows:

Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%) (B/A)	Remarks
Independent Director	Cha Anna	4	0	100%	None
Independent Director	Ye Shao De	4	0	100%	None
Independent Director	Su Jin Jun	4	0	100%	None
Other mentionable items:
1. If any of the following circumstances occur, the dates of meetings, sessions, contents of motion, resolutions of the Audit Committee and the Company's response to the Audit Committee's opinion should be specified:
(1) Matters referred to in Article 14-5 of the Securities and Exchange Act.
The state of operations of the Audit Committee in FY 2025
Date of Meeting	Major Resolutions		Matters Listed under Article 14-5 of the Securities and Exchange Act Securities and Exchange Act	Results of Audit Committee's Resolution	The Company's Response to the Audit Committee's Opinion
2025.2.26
3rd Session,
7rd Meeting	1. To discuss the "Internal Control System Statement" of the Company for FY 2024.		v	The resolution is passed with no objection by all attending members.	Submitted for discussion at the most recent Board of Directors meeting.
	2. To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from October 2024 to January 2025.		v
	3. To audit the independence and suitability of the CPAs.		v
	4. To audit the compensation paid to attesting CPAs.		v
	5. To review the Company's 2024 business report and financial statements.		v
	6. To discuss the profit distribution for FY 2024.
2025.5.14	1. To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from February to March 2025.		v	The resolution is passed with no	Submitted for discussion at the

3rd Session, 8th meeting	2. To discuss the amendments to the Company's "Procedures for the Preparation and Verification of Sustainability Reports."		objection by all attending members.	most recent Board of Directors meeting.
	3. To review the Q1 2025 consolidated financial statements of the Company.
2025.8.13 3rd Session, 9th meeting	1. To discuss the amendments to the Company's "Procedures for the Acquisition or Disposal of Assets."	v	The resolution is passed with no objection by all attending members.	Submitted for discussion at the most recent Board of Directors meeting.
	2. To discuss the revision of the "Internal Control Systems" of the Company.	v
	3. To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from April to June 2025.	v
	4. To review Q2 2025 consolidated financial statements of the Company.
2025.11.11 3rd Session, 10th meeting	1. To discuss the revision of the "Internal Control Systems" of the Company.	v	The resolution is passed with no objection by all attending members.	Submitted for discussion at the most recent Board of Directors meeting.
	2. To discuss the "2026 Annual Audit Plan" of the Company.
	4. To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from July to September 2025.	v
	5. To discuss the proposal to provide a loan facility of NT$ 5 million to the German subsidiary, Abnova GmbH.	v
	6. To review Q3 2025 consolidated financial statements of the Company.

The Audit Committee convened a total of 4 meetings in FY 2025, and the main consideration matters discussed included:

Quarterly and annual financial reports.
Assessment of the effectiveness of the internal control system.
Revision of "Internal Control Systems".
Amendment of the Company's "Procedures for the Acquisition or Disposal of Assets."
Loans and advances to related parties.
The hiring of an attesting CPA, his/her independence, and evaluation of suitability, and the compensation given thereto.
Legal compliance and risk management, etc.

The performance evaluation of the Audit Committee for the year 2025 (including the evaluation period, methodology, criteria, and results) is detailed on page 33-34. The summarized evaluation results of the Audit Committee's performance have been submitted to the Compensation Committee on February 25, 2026, and reviewed by the Board of Directors on the same date.

(2) Other matters which were not approved by the Audit Committee but were approved by two-thirds or more of all directors: None

If there are independent directors' avoidance of motions in conflict of interest, the directors' names, contents of motion, causes for avoidance and voting should be specified: None
Communications between the independent directors, the Company's chief internal auditor and CPAs:

(1) Description regarding the communications between the Independent Directors and the Internal Auditors:

A. The Internal Audit Manager of the Company regularly submits audit reports and follow-up audit reports to all independent directors monthly. If any independent director raises questions regarding the audit content, immediate clarification and discussion will be conducted. The independent directors and the Internal Audit Manager will convene at least one private meeting annually to discuss the effectiveness of audit operations and the design and execution of internal control systems for full communication, and it will be recorded. The Internal Audit Manager also attends every Board meeting for report presentation.
B. The Company's external auditors report separately to the Independent Directors at least once every quarter regarding the financial status, operating results, and the findings of internal control audits. If there is any enactment or amendment of a decree and International Financial Reporting Standards (IFRS) which might materially affect the Company, explanations and discussions will be provided to the independent directors. The attesting CPAs attends Board meetings and Audit Committee meetings to provide professional explanations if committee members have any inquiries.
C. The Audit Committee of the Company is composed of 3 independent directors. In addition to regular Audit Committee meetings, the independent directors, Internal Audit Manager and auditors maintain good communication through email, phone, or ad hoc meetings as needed.

(2) Summary of communications between independent directors and Internal Audit Manager:

Dates of Meeting	Communication Topics	Communication Results
February 26, 2025
Pre-Board Meeting	• Report on the execution of the Annual Audit Plan.
• To discuss the effectiveness of the design and execution of the internal control system as well as the "Internal Control System Statement" for FY 2024.	The independent directors had no opinions or suggestions after communication and discussion.
May 14, 2025
Pre-Board Meeting	• Report on the execution of the Annual Audit Plan.
• To discuss the revision of “Internal Control Systems”.	The independent directors had no opinions or suggestions after communication and discussion.
August 13, 2025
Pre-Board Meeting	• Report on the execution of the Annual Audit Plan.
• To discuss the revision of “Internal Control Systems” for subsidiaries.	The independent directors had no opinions or suggestions after communication and discussion.
November 11, 2025
Pre-Board Meeting	• Report on the execution of Annual Audit Plan
• To discuss the revision of “Internal Control Systems” for subsidiaries.
• To discuss the "2026 Annual Audit Plan" of the Company.	The independent directors had no opinions or suggestions after communication and discussion.

(3) Summary of communications between independent directors and CPAs:

Dates of Meeting	Communication Topics	Communication Results
February 26, 2025
Pre-Board Meeting	To provide explanations on audit and Q&A to the independent directors regarding the consolidated and single entity financial statements for FY 2024	The independent directors had no opinions or suggestions, and it was submitted to the competent authority within the time limit as required by laws and regulations after reviewed by the Board of Directors.
May 14, 2025
Pre-Board Meeting	To provide explanations on review and Q&A to the independent directors regarding the Q1 2025 consolidated financial statements.	The independent directors had no opinions or suggestions, and it was submitted to the competent authority within the time limit as required by laws and regulations after reviewed by the Board of Directors.
August 13, 2025
Pre-Board Meeting	To provide explanations on review and Q&A to the independent directors regarding the Q2 2025 consolidated financial statements.	The independent directors had no opinions or suggestions, and it was submitted to the competent authority within the time limit as required by laws and regulations after reviewed by the Board of Directors.
November 11, 2025
Pre-Board Meeting	To provide explanations on review and Q&A to the independent directors regarding the Q3 2025 consolidated financial statements.	The independent directors had no opinions or suggestions, and it was submitted to the competent authority within the time limit as required by laws and regulations after reviewed by the Board of Directors.

The state of participation in board meetings by the supervisors: (Not applicable)

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

Evaluation Item	Implementation Status			Deviations from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	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”?	☑		The Company has established "Corporate Governance Best Practice Principles", and the information is disclosed on Market Observation Post System (MOPS) and the Company website.	None
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?
(2) Does the company possess the list of its major shareholders as well as the ultimate owners of those shares?
(3) Does the company establish and execute the risk management and firewall system within its conglomerate structure?
(4) Does the company establish internal rules against insiders trading with undisclosed information?	☑
☑
☑
☑
☑		(1) The Company has an internal control mechanism to govern equity-related operations, and it is implemented in compliance with the operating procedures.
(2) Some of the directors are also major shareholders, and the Company possesses the list of major shareholders who are controlling the Company as well as the list of the actual controllers of the major shareholders.
(3) The business and the financial accounting of affiliated enterprises of the Company operate independently. The Company has established specifications such as "Regulations Governing Group Enterprises, Specific Companies and Related-Party Transactions", "Regulations for Supervising and Managing Subsidiaries", etc., to effectively implement risk control and firewall mechanisms.
(4) The Company has established specifications such as "Procedures for Handling Material Inside Information" etc., to ensure that all internal personnel are fully informed and strictly comply with the regulations. Any securities trading using material nonpublic information is not allowed. In addition, the Company will conduct education and training sessions from time to time for internal personnel to advocate the relevant laws and regulations and common pitfalls, with a view to improving their awareness of securities trading.
Pursuant to Article 6 of the "Procedures for Handling Material Inside Information" of the Company: When insiders of the Company become aware of the contents of the Company's financial reports or relevant results, measures include, without limitation, prohibiting a director from trading its shares during the closed period of 30 days prior to the publication of the annual financial reports and 15 days prior to the publication of the quarterly financial reports.
Implementation of the status of this regulation in FY 2025:
1. Insiders were notified of the trading prohibition during the blackout period, and all individuals complied with the regulations; no violations or instances of non-compliance occurred.	None

30 -

| Evaluation Item | Implementation Status | | | | | | Deviations from
"the Corporate
Governance
Best-Practice
Principles for
TWSE/TPEx
Listed
Companies"
and Reasons |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | | | | |
| | | | Financial Report | Publication Date of the Financial Report | Notification Time and Method | Compliance with Regulations | |
| | | | FY 2024 | 2025.2.26 | The Chief Corporate Governance Officer notified insiders, including directors and managerial officers, via email on January 10, 2025, that trading shares during the closed period are prohibited. All insiders have complied with the regulations. | Yes | |
| | | | Q1, 2025 | 2025.5.14 | The Chief Corporate Governance Officer notified insiders, including directors and managerial officers, via email on April 22, 2025, that trading shares during the closed period are prohibited. All insiders have complied with the regulations. | Yes | |
| | | | Q2, 2025 | 2025.8.13 | The Chief Corporate Governance Officer notified insiders, including directors and managerial officers, via email on July 21, 2025, that trading shares during the closed period are prohibited. All insiders have complied with the regulations. | Yes | |
| | | | Q3, 2025 | 2025.11.11 | The Chief Corporate Governance Officer notified insiders, including directors and managerial officers, via email on October 21, 2025, that trading shares during the closed period are prohibited. All insiders have complied with the regulations. | Yes | |
| | | | 2.Education and Training Programs: | | | | |
| | | | Course Title | | Participants | Total Attendance | |
| Insider Trading Regulations and Prevention Practices (1 Hour) | | Directors and All Employees | 80 Person-times | | | | |
| 3. Composition and Responsibilities of the Board of Directors
(1) Does the Board develop and implement a diversified policy for the composition of its members? | ☑ | | (1) The Company has established "Procedures for Election of Directors" that specified the diversity policy of the Board of Directors, and the Article 20 of the "Corporate Governance Best Practice Principles" of the Company has stipulated the board membership diversification criteria and the competencies of Board of Directors must possess as a whole. The areas of expertise of the Board members covering different fields, such as biotechnology, medicine, financial management, accounting, business management, etc., achieving the goal of diversification.
For more details regarding the diversity policy of the Board of Directors of the Company and the specific goals of diversity management and its implementation status, please see | | | | None |

31 -

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Governance
Best-Practice
Principles for
TWSE/TPEx
Listed
Companies”
and Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | |
| | | | 4. The diversity policy and status of independence of the board of directors (Page 13) | |
| (2) Does the company voluntarily establish other functional committees in addition to the Remuneration Committee and the Audit Committee? | ☑ | | (2) The Company established the "Risk Management Committee" dated May 8, 2024, appointing three independent directors of the Company as its members. Among them, Su Jin Jun, an independent director with expert ise in financial accounting, will be particularly helpful in supervising risks related to monetary, financial, and international economics. Ye Shao De, another independent director with expertise in medical and biotechnology fields, is primarily helpful in supervising risks related to industry development trends, product and technology development, clinical applications, and regulations. Cha Anna, an independent director with expertise in operations management, is particularly helpful in supervising risks related to business marketing and internal control management. Assist the board in strengthening its oversight function of risk management, effectively reducing various potential risks, and regularly reporting the progress of risk management execution to the board.

The company established the "Sustainability Development Committee" dated February 26, 2025, comprising three independent directors who serve as committee members. All three members possess the professional knowledge and capabilities required for the committee's sustainability development responsibilities. The committee assists the board in promoting sustainability policies, reviewing the effectiveness of sustainability initiatives, and regularly reporting on the execution of sustainability efforts to the board. In the future, the company will assess the necessity of establishing additional functional committees based on operational needs. | |
| (3) Does the company establish a standard to measure the performance of the Board and implement it annually, and are performance evaluation results submitted to the Board of Directors and referenced when determining the remuneration of individual directors and nominations for reelection? | ☑ | | (3) In accordance with the "Rules for Performance Evaluation of Board of Directors" of the Company, the Board of Directors and the members of the functional committees will complete the self-performance review after the end of the assessment year and prior to the most recent regular Board meeting. Statistics of performance review results for FY 2025 have been submitted to the Remuneration Committee and the Board of Directors on February 25, 2026 for discussion, and were submitted to the competent authority within the time limit as required by laws and regulations. The performance review results are used to serve as a reference to determine the remuneration for individual directors and for the nomination and reappointment of directors.

Scope of Evaluation: Board meeting
• Evaluation frequency: Once a year
• Evaluation period: 2025.1.1-2025.12.31
• Evaluation method: Internal self-assessment of the Board of Directors
• Evaluation content: | |
32 -

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate Governance
Best-Practice Principles for
TWSE/TPEx
Listed Companies”
and Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | |
| | | | Involvement in the Company’s operation, enhancement of the quality of the Board of Directors’ decision-making, composition and structure of the Board of Directors, election of board members and continuing knowledge development, internal controls, etc.

• Evaluation result: The score of the self-assessment result is 94 marks, with the lowest scoring items are the involvement and extent of participation in the Company’s operation.
• Improvement plan: To contribute more effectively to the Board of Directors.

Scope of Evaluation: Individual Board member
• Evaluation frequency: Once a year
• Evaluation period: 2025.1.1-2025.12.31
• Evaluation method: Self-assessment of the Board members
• Evaluation content: Understanding of the Company’s goals and mission, awareness of director’s duties, involvement in the Company’s operations, management of internal relationship and communication, the director's professionalism and continuing knowledge development, internal controls, etc.
• Evaluation result: The score of self-assessment result is 92-95 marks, with the lowest scoring item is the involvement in the Company’s operation.
• Improvement plan: The Company will strengthen the commitment of Board members to the Board of Directors and reduce the number of directors who concurrently serve as supervisors.
Scope of Evaluation: Remuneration Committee members
• Evaluation frequency: Once a year
• Evaluation period: 2025.1.1-2025.12.31
• Evaluation method: Self-assessment of the functional committee members
• Evaluation content: Involvement in the Company’s operation, awareness of the Remuneration Committee members’ duties, enhancement of the quality of the Remuneration Committee members’ decision-making, composition and election of Remuneration Committee members, internal controls, etc.
• Evaluation result: The score of self-assessment result is 93-95 marks, with the lowest scoring items are the involvement and extent of participation in the Company’s operation.
• Improvement plan: To provide more specific improvement recommendations to the Remuneration Committee.
Scope of Evaluation: Audit Committee Member
• Evaluation frequency: Once a year | |
33 -

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Governance
Best-Practice
Principles for
TWSE/TPEx
Listed
Companies”
and Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | |
| | | | • Evaluation period: 2025.1.1-2025.12.31
• Evaluation method: Self-assessment of the functional committee members
• Evaluation Content: Involvement in the Company’s operation, awareness of the Audit Committee members’ duties, enhancement of the quality of the Audit Committee members’ decision-making, composition and election of Audit Committee members, internal controls, etc.
• Evaluation result: The score of the self-assessment result was 94-96 marks, with the lowest scoring item is the awareness of the Audit Committee's responsibilities.
• Improvement plan: To provide more professional and objective recommendations as a reference for the Board of Directors' decision-making.
5. Scope of Evaluation: Risk Management Committee Members
• Evaluation frequency: Once a year
• Evaluation period: 2025.1.1-2025.12.31
• Evaluation method: Self-assessment of the functional committee members
• Evaluation content: Involvement in the Company’s operation, awareness of the Risk Management Committees’ duties, enhancement of the quality of the Risk Management Committee s’ decision-making, composition and election of Risk Management Committee members, internal controls, etc.
• Evaluation result: The score of self-assessment was 93-95 marks, with the lowest scoring item being aware of the Risk Management Committee's responsibilities.
• Improvement plan: More effectively assess the potential risks in the company’s operations.
6. Scope of Evaluation: Sustainable Development Committee Members
• Evaluation frequency: Once a year
• Evaluation period: 2025.1.1-2025.12.31
• Evaluation method: Self-assessment of the functional committee members
• Evaluation content: Involvement in the Company’s operation, awareness of the Sustainable Development Committees’ duties, enhancement of the quality of the Sustainable Development Committees’ decision-making, composition and election of Sustainable Development Committee members, internal controls, etc.
• Evaluation result: The score of self-assessment was 92-95 marks, with the lowest scoring item being aware of the Sustainable Development Committee's responsibilities.
• Improvement plan: To provide more professional and objective recommendations as a reference for the Board of Directors' decision-making. | |

34 -

| Evaluation Item | Implementation Status | | | | Deviations from
“the Corporate Governance
Best-Practice Principles for
TWSE/TPEx
Listed Companies”
and Reasons |
| --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | | |
| (4) Does the company regularly evaluate the independence of CPAs? | ☑ | | (4) The Company regularly evaluates the independence and suitability of the CPA once a year. In addition to obtaining the "Statement of Auditor Responsibilities and Functions and Independence" and Audit Quality Indicators (AQIs), the Company also conducts a CPA evaluation in reference to the independence evaluation standards for accountants as specified in the Bulletin of Norm of Professional Ethics for Certified Public Accountant of the Republic of China No. 10 "Independence in Audit and Review" and 13 AQI indicators (for details, see notes 1-2). After evaluation, it has been confirmed that the CPA all meets the independent criteria and has no other financial interest relationship with the Company except for the audit and tax fees. With reference to the AQIs, it is believed that the CPAs and the accounting firm are averagely superior to peers in the industry from the aspects of professionalism, quality control, independence, supervision, and innovation, that can provide good audit services. The most recent evaluation of independence and suitability of CPA was discussed and approved by the Audit Committee and was submitted to the Board of Directors for approval on February 25, 2026.

Note 1: CPA independence evaluation items: | | |
| | Evaluation Item | | Result | Independent | |
| | The CPA has no direct or significant indirect financial interest relationship with the Company. | | Yes | Yes | |
| | The CPA has no financing or guarantees with the Company or the Company’s directors. | | Yes | Yes | |
| | The CPA has no close business relationship or potential employment relationship with the Company. | | Yes | Yes | |
| | The CPA and the audit team members have not served as directors, managerial personnel or positions that have significant influence on audit work in the Company at present or in the last two years. | | Yes | Yes | |
| | The CPA has no non-audit service items that may directly affect the audit work that has been provided to the Company. | | Yes | Yes | |
| | The CPA has no intermediation of stocks or other securities issued by the Company. | | Yes | Yes | |
| | The CPA has not acted as a defense attorney for the company or act as a representative on behalf of the Company to coordinate conflicts with third parties. | | Yes | Yes | |
| | The CPA is not a relative of the Company's directors, managerial personnel, or people who have a significant influence on audit matters. | | Yes | Yes | |
| | Does the CPA have regular rotation | | Yes | Yes | |

35 -

Evaluation Item	Implementation Status	Deviations from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons
Yes	No	Abstract Illustration

Aspect	No	Indicator
Professionalism	1	Audit experience
2	Number of hours of training	Have the CPA and auditing personnel received sufficient education and training to acquire professional knowledge and skills?
3	Turnover rate	Does the firm maintain a sufficient number of senior human resources?
4	Professional support	Does the firm have sufficient non-audit professional staff, including computer auditors and evaluators, to support the audit team?
Quality control	5	CPA workload
6	Number of audit hours	Is the percentage of audit hours carried out by the audit team appropriate at each stage of the audit?
7	Quality control review	Has the EQCR accountant spent sufficient time on the quality control review of the audit cases?
8	Capability of quality control support	Does the firm have sufficient quality control resources, including risk management and professional audit consultants, to support the audit team?
Independence	9	Non-audit services
10	Client familiarity	Could the cumulative number of years that the firm has provided audit services to individual clients affect independence?
Supervision	11	External inspection deficiencies and disciplinary actions
12	Improvement letter issued by competent authorities

| Evaluation Item | Implementation Status | | | | | | Deviations from
“the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | | | | |
| | | | Innovation | 13 | Innovative plan or initiative | The firm's commitment to enhancing audit quality, including the adoption or planning of relevant plans or engagements to enhance audit quality. | |
| 4. Does the company appoint a suitable number of competent personnel and a supervisor responsible for corporate governance matters (including but not limited to providing information for directors and supervisors to perform their functions, assisting directors and supervisors with compliance, handling work related to meetings of the board of directors and the shareholders' meetings, and producing minutes of board meetings and shareholders' meetings)? | ☑ | | The Board meeting on February 24, 2023, has passed the resolution to appoint the Executive Assistant to the Chairman Office, Tung I Ling as the Chief of Corporate Governance Officer, protecting the rights and interests of shareholders and strengthening the functions of the Board of Directors, and responsible for corporate governance related matters. She has expertise in financial accounting and more than 20 years of experience in internal audit, equity, and corporate governance in TWSE/TPEx Listed Companies. Her main scope of duties and authority include:
1. Handling matters relating to Board meetings, Remuneration Committees meetings, Audit Committees meetings, Risk Management Committee, Sustainability Development Committee, and Shareholder meetings in accordance with laws and regulations (including meeting notices, agendas and relevant information, minutes record and compilation, etc.).
2. Assist in matters related to changes in the Board of Directors and provide continuing education and training.
3. Furnishing information required for business execution by directors.
4. Assisting directors with legal compliance.
5. Purchase Directors and Officers (D&O) Liability insurance.
6. Report the examination results of the qualifications of independent directors during nomination, appointment, and during their tenure of office in accordance with relevant laws and regulations to the Board of Directors.
7. Other matters are set out in the Company's Articles of Incorporation or contract.
The business execution status for FY 2025 is as follows:
1. Handle the matters related to convening Board meetings in accordance with laws and regulations: Arrange the Board meetings and functional committees’ meetings of the year, notify the directors and provide agendas and relevant information seven days before the meeting, and complete the Board meeting minutes record and compilation within one week after the meeting and send. A total of 4 Board meetings, 4 Audit Committee meetings, 2 Remuneration Committee meetings, 1 Risk Management Committee meeting, and 1 Sustainable Development Committee meeting were held in FY 2025,
2. Convene the annual general meeting (AGM) in accordance with laws and regulations: Handle matters related to the shareholders' meeting. The 2025 AGM was held on May 29, 2025.
3. Assist in arranging meetings between independent directors, Internal Audit Manager, and attesting CPAs to understand the state of implementation of Company's internal audit, | | | | None |

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Governance
Best-Practice
Principles for
TWSE/TPEx
Listed
Companies”
and Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | |
| | | | financial position, newly revised laws and regulations, etc.
4. Revise the Company's relevant regulations and handle alteration of registration in response to the Company's operational needs and amendments to corporate governance-related laws and regulations.
5. Assist in arranging continuing education and training courses for directors and ensure that all directors have completed at least 6 hours of training. For the details regarding relevant training, please refer to mops.
6. During the period of 30 days before the publication of the annual financial report and 15 days before the publication of the quarterly financial report, all directors and managerial personnels are prohibited from trading the Company's stocks. The Chief of Corporate Governance Officer will notify all directors and managerial personnels via email prior to the aforementioned periods in order to prevent internal personnels from inadvertently violating this regulation. In FY 2025, all directors and managerial personnels of the Company complied with regulations and no violation is reported.
7. Purchase liability insurance for directors and key executives. The relevant information, including the insured amount, coverage scope, and insurance premium, was reported to the Board of Directors on August 13, 2025.
8. The Board meeting and the performance review for functional committees’ members for FY 2025 have been reviewed by the Remuneration Committee and discussed by the Board of Directors on February 25, 2026. | |
| 5. Does the company establish a communication channel and build a designated section on its website for stakeholders (including but not limited to shareholders, employees, customers, and suppliers), as well as handle all the issues they care for in terms of corporate social responsibilities? | ☑ | | To fulfill our corporate social responsibility and emphasize stakeholders’ communication, the company has established transparent and efficient channels for stakeholders’ engagement. We integrate stakeholders’ feedback into our management policies and operational activities to achieve the goal of sustainable development. In alignment with the AA1000 Stakeholders Engagement Standard (AA1000 SES), the company has defined its key stakeholders based on the five principles: Accountability, Influence, Tension, Diversity of Perspectives, and Dependency.
Through stakeholders’ identification survey, we have identified five primary stakeholders’ groups: employees, customers, suppliers, government agencies, and shareholders/investors. In order to foster strong communication with stakeholders, the company employs diverse channels and mechanisms to listen to, understand, and respond to their needs. Through continuous engagement and dialogue, we aim to create shared value, enhance mutual benefits, and build lasting trust.
The Company will regularly report on the state of communication with stakeholders to the Board of Directors. The following is the communications between the Company and the stakeholders that was reported in the Board meeting on November 11, 2025. (The communication with each stakeholder group is detailed on the following page.) | None |

38 -

The company's regular communication with stakeholders

Role of stakeholders: Employee

Significance to the Company	Issues of Concern	Communication Channels	Frequency of Communication	Communication Outcomes and Responses
Employees are the company’s most valuable assets and key partners in sustainable development. In addition to safeguarding their labor rights and providing a healthy and safe working environment, the company also fosters a workplace culture of respect and care. We aim to attract top talent, encourage employees to excel in their professional fields and support their continuous enhancements. Together with our employees, we strive for higher growth and create greater operational performance.	• Employee care and labor protection
• Talent appointment and retention
• Occupational health and safety
• Human rights
• Business strategy and economic performance
• Corporate governance	Labor-management meeting	Quarterly	4 labor-management meetings were convened in 2025.
		Performance evaluation	Biannually	2 performance evaluations were conducted in 2025.
		Health checkups	Annually	To secure employees’ health and safety, a free health checkup was provided to all employees in 2025.
		On-site health services	Monthly	On-site health services were conducted monthly by medical professionals. To safeguard employees’ health, 12 on-site health services were organized in 2025.
		Internal/external training programs	Monthly/Occasionally	Internal training programs were provided on a monthly basis, covering topics such as biotechnology expertise, quality management, regulatory compliance, and occupational safety. In 2025, a total of 27 internal training sessions were conducted, accumulating 425.5 training hours. In addition, external training courses were provided based on job requirements or continuing education regulations, including areas such as auditing, accounting, and corporate governance. In 2025, there was a total of 99 external training hours.
		Employee welfare committee	Occasionally	The company established an Employee Welfare Committee to coordinate various employee benefits. Annual budgets and subsidy plans are formulated so that activities can be organized occasionally to express appreciation and foster team spirit (e.g., year-end banquets, departmental gatherings, and holiday celebrations). The company also provides seasonal gifts or vouchers, various allowances, and free coffee and beverages, among other benefits.
		Employee communication mechanisms	In real-time	Multiple communication channels (e.g., phone, email, in-person meetings) and various types of meetings are available for employees to express suggestions or raise concerns. In 2025, no complaints or reporting cases were received.
		Company Website, EIP, and Internal Announcements	Occasionally	• The company has established workplace regulations and personnel policies to protect employee rights and ensure compliance. Leave policies exceeding the requirements of the Labor Standards Act are also in place.
• According to Article 24 of the company’s Articles of Incorporation: “If the company generates profit in a given year (defined as pre-tax earnings before deducting employee and director remuneration allocations), no less than 1% shall be allocated as employee compensation (among which a portion no less than 0.5% of the said profit shall be distributed to non-executive employees), and no more than 3% as director compensation.”. This allows employees to share in the company's operational achievements through salaries and bonuses.

39 -

Role of stakeholders: Clients

Significance to the Company	Issues of Concern	Communication Channels	Frequency of Communication	Communication Outcomes and Responses
Clients are key partners in the company’s pursuit of sustainable development. By grasping industry trends and continually investing in innovation, Abnova listens to customer needs and is committed to delivering high-quality, professional, and diversified products and services. Together with our customers, we aim to build a sustainable future.	• Product quality and safety
• Information security and privacy protection
• Product development, innovation, and green technologies
• Business strategy and Economic performance
• Corporate governance	Customer satisfaction surveys	Annually	As the company is committed to fulfilling clients’ needs, customer satisfaction surveys are regularly conducted for direct sales and distribution clients. The results serve as a basis for internal improvements aimed at enhancing customer satisfaction and increasing repurchase rates. In 2025, the company conducted a customer satisfaction survey for direct-sale and distribution clients, achieving an overall satisfaction rate of 83%, with 86% satisfaction with products and services and 96% satisfaction with our website.
		Personal data protection policy and personal data inventory	Annually	The Company has established the "Personal Data Protection Operating Guidelines" to safeguard customer privacy and interests. On an annual basis, each department performs a personal data inventory to ensure robust management. Furthermore, the Company conducts regular educational training sessions, with one session specifically focused on personal data protection held in 2025.
		Customer service department, technical support, customer complaint mailbox	Monthly	Customer inquiries and complaints are handled by a dedicated team. Monthly analyses and reviews of complaint cases are conducted to better understand customer needs and are used as a reference for product optimization.
		Company website	In real-time	The company launched a new official website, offering more user-friendly product search and ordering functions. New products and promotional offers are released from time to time to enrich the customer’s purchase experience.
		Domestic and international biomedical exhibitions	Occasionally	After the pandemic, the company actively participated in domestic and international biotech and medical exhibitions. These events not only allowed us to engage closely with clients but also to understand more about industry trends and the latest technological developments. In 2025 the company participated in 8 domestic and international biotech and medical exhibitions.

Role of stakeholders: Suppliers

Significance to the Company	Issues of Concern	Communication Channels	Frequency of Communication	Communication Outcomes and Responses
Suppliers are important partners in supporting our sustainable business. We strive for mutual trust and close collaboration through fair and transparent cooperation, aiming for shared growth and prosperity.	Supply chain management	Procurement Department & stakeholder mailbox	In real-time	The Procurement Department is established to manage daily communication with suppliers, provide feedback on supplier evaluation results, and oversee follow-up improvement actions.
		Supplier selection policy & procurement contracts	Occasionally	A classification system is implemented for raw material suppliers to select the qualified candidates. Procurement contracts are signed with key suppliers.
		Supplier evaluation	Biannually	Regular supplier evaluations are conducted to ensure that the quality of products and services meets the company’s standards. In 2025, a total of two supplier evaluations were conducted.

40 -

Role of stakeholders: Government Agencies

Significance to the Company	Issues of Concern	Communication Channels	Frequency of Communication	Communication Outcomes and Responses
The company closely follows the latest regulatory developments, aligns with government policies, and complies with relevant laws and regulations. We maintain smooth communication with government agencies for the positive development of the company and the industry.	• Corporate governance
• Regulation compliance
• Information security and privacy protection
• Business strategy and economic performance	the Market Observation Post System (MOPS), the company website, policy and regulation briefings/forums, Taiwan Stock Exchange (TWSE) Survey System, email and phone	In real-time	Each business unit has designated contact personnel to ensure smooth communication with the competent authority. The company also proactively keeps up to date with regulatory changes and promptly adjusts internal control systems and operating procedures as needed.
		Supervisory and auditing activities conducted with the competent authority	Regularly and occasionally	The company cooperates fully with the competent authority to carry out supervisory and review processes.
		Official Electronic documents and email	In real-time	The company receives and processes official electronic documents and emails daily, ensuring compliance with deadlines and execution of tasks as instructed by the competent authority.

Role of stakeholders: Shareholders/Investors

Significance to the Company	Issues of Concern	Communication Channels	Frequency of Communication	Communication Outcomes and Responses
Shareholders and investors are key pillars of an enterprise's growth. The company is committed to the transparent and fair disclosure of material, financial, and operational information, as well as future strategies, to showcase its achievements and earn continued support from shareholders and investors.	• Corporate governance
• Business strategy and economic performance
• Risk control and management	Shareholders’ Meeting	Annually	The company holds shareholders’ meetings to report on operational performance and discuss proposals with shareholders.
		Investor conference	At least once per year	In 2025, the company held two investor conferences to provide shareholders and investors with an overview of its financial and operational status, as well as to outline future development strategies. The company actively engaged with investors and addressed their questions.
		Spokesperson, company website, and investors’ mailbox	In real-time	A spokesperson and deputy spokesperson have been designated, and an investor relations mailbox is available to address investor concerns.
		Agent for stock affairs -KGI Securities	Occasionally	KGI Securities has been appointed as the company’s Agent to handle stock affairs.
		the Market Observation Post System (MOPS)	Regularly and occasionally	All financial, operational, and material information is disclosed through the Market Observation Post System (MOPS). In 2025, the company published 16 material announcements.

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | |
| 6. Does the company appoint a professional shareholder service agency to deal with shareholder affairs? | ☑ | | The Company has appointed KGI Securities Co., Ltd. as the proxy for handling stock-related matters. | None |
| 7. Information Disclosure
(1) Does the company have a corporate website to disclose both financial standings and the status of corporate governance?
(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)?
(3) Does the company announce and report annual financial statements within two months after the end of each fiscal year, and announce and report Q1, Q2, and Q3 financial statements, as well as monthly operation results, before the prescribed time limit? | ☑ | | (1) The Company has established a website (https://www.abnova.com) and Investor Relations session is established in the Company website to provide relevant information on the Company's financial and business information as well as corporate governance related information for public access.
(2) The company has both Chinese and English version websites, information collection and disclosure are performed by dedicated personnel, and spokesperson system is implemented that spokesperson responsible for external communication. If the Company convenes an investor conference, the relevant information will be disclosed on MOPS as well as the Company website as required by laws and regulations.
(3) The Company published the financial reports for FY 2025 on February 25, 2026, that is, within two months after the end of the accounting year. The Company has also published the Q1, Q2, Q3 financial reports as well as monthly business operational status ahead of the specified deadlines. | None |
| 8. Has the Company disclosed other information to facilitate a better understanding of its corporate governance practices (e.g. including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors' training records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies, and purchasing insurance for directors)? | ☑ | | (1) Employee rights, employee wellness:
The Company has established an Employee Welfare Committee to regularly organize various activities (e.g. Chinese New Year banquet, departmental gatherings, etc.) as a token of appreciation all the employees, and provide subsidies, gifts, and allowances during festival seasons. The company also contributes pension to employees as required by laws and regulations, provides national health insurance, and annual free health examination. Moreover, the Company provides free coffee and beverages. The measures governing labor-management relations follow relevant laws and regulations, and it is implemented well.
(2) Investor relations:
The Company holds an annual shareholders' meeting as required by laws and regulations, and a spokesperson system is established to handle matters related to investors. In addition, the Company handles the information disclosure in accordance with the regulations of the competent authorities, and an investor relations section is established on the Company website, providing a channel for exchange of opinions.
(3) Supplier relations:
The Company has established "Supplier Management Procedures" and "Procurement Management Procedures" to carefully select business partners and suppliers who emphasize the stability of product quality and price reasonableness and establish long- | None |

| Evaluation Item | Implementation Status | Deviations from
“the Corporate Governance
Best-Practice Principles for
TWSE/TPEx
Listed Companies”
and Reasons |
| --- | --- | --- |
| Yes | No | Abstract Illustration |
| | | | term collaborations with suppliers based on mutual trust and mutual benefit, achieving a win-win situation.
(4) Rights of stakeholders:
The Company maintains open-air communication and good cooperative relationships with bankers, customers, and stakeholders, as well as protecting their entitled rights.
(5) Continuing education/ training of directors:
The Company arranged various types of continuing education/training courses for directors to enhance their professional knowledge and legal literacy. In FY 2025, all directors attended more than 6 hours of continuing education/training courses. The number of hours of continuing education/training courses for all directors complies with the legal requirement. The directors’ training records are as follows: | |
| List of directors | Training unit | Titles of training courses |
| Wilber Huang,
Representative of Harmony Investment Co. Ltd., Chiu Chi Ching,
Representative of Pan Pacific Investment Co. Ltd., Jih Pei Ju,
Representative of China Wire & Cable Co., Ltd, Chen Yueh Hung,
Cha Anna,
Ye Shao De,
Su Jin Jun | Taiwan Corporate Governance Association | Digital Risks Associated with Emerging Technologies and AI (3 hours) |
| Wilber Huang,
Representative of Harmony Investment Co. Ltd., Chiu Chi Ching,
Representative of Pan Pacific Investment Co. Ltd., Jih Pei Ju,
Representative of China Wire & Cable Co. Ltd, Chen Yueh Hung,
Cha Anna,
Ye Shao De,
Su Jin Jun | Taiwan Corporate Governance Association | M&A Compliance Practices: Essential Knowledge for Decision-Makers (3 hours) |

43 -

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | |
| | | | (6) Implementation of risk management policies and risk evaluation measures:
The Company has established internal control systems and various management procedures that serve as a standard for risk control and risk measurement standards for operational units, and it is implemented well.

(7) Implementation of customer relations policies:
The Company has set up a Customer Service Department and a Technical Support Department to fully understand customer needs and provide relevant services and assistance, with a view to achieving customer satisfaction.

(8) Purchasing insurance for directors:
The Company has consistently purchased D&O Liability insurance for directors (including managerial personnels) since June 2011. The amount of insurance coverage for this year is NT$ 85 million. Information relating to liability insurance such as the insured parties, coverage amount, scope, period, premium, etc. has been reported to the Board of Directors on August 13, 2025. The insurance policy has not yet expired as of the publication date of the annual report. | |
| 9. With respect to the results of the annual Corporate Governance Evaluation most recently issued by the Corporate Governance Center of Taiwan Stock Exchange, please describe the improvements, and provide priority and measures to enhance those matters that have not yet been improved. (It is not applicable as no improvement is required)
(1) The corporate governance evaluation results for the Company in the most recent fiscal year (2025) indicate that no functional committees beyond those required by law were established. However, the company established a Sustainability Development Committee on February 26, 2025, with three independent directors serving as committee members.
(2) The corporate governance evaluation results for the Company in the most recent fiscal year (2025) indicate that the sustainability report had not yet been submitted to the board for approval. The Company prepared its inaugural Sustainability Report in 2024. The "2024 Sustainability Report" was subsequently submitted to and approved by the Board of Directors on August 13, 2025.
(3) According to the Corporate Governance Evaluation results for the most recent fiscal year (2025), the Company's Sustainability Report has yet to disclose ESG-related information in reference to the SASB Standards. In response, the Company will evaluate the incorporation of SASB's industry-specific metrics into its future sustainability reports to enhance ESG disclosure. | | | | |

44 -

45 -

2.3.4 If the company has a remuneration committee or nomination committee in place, the composition and operation of such committee shall be disclosed

(1) Information of Members of the Remuneration Committee

The Remuneration Committee of the Company is composed of three independent directors. For more details about their work experience, professional qualifications, and experience, as well as independence status, please refer to Page 11, Appendix - Disclosure of Professional Qualifications of Directors and Independence Analysis of Independent Directors.

(2) Attendance of Members at Remuneration Committee Meetings

There are three members of the Remuneration Committee.
The term of office for this committee is from May 15, 2023 to May 14, 2026. A total of 4 (A) Remuneration Committee meetings were held in the most recent fiscal year (FY 2025). The attendance record of the Remuneration Committee members was as follows:

Title	Name	Attendance in Person(B)	By Proxy	Attendance Rate (%) (B/A)	Remarks
Convener	Cha Anna	2	0	100%	None
Committee Member	Ye Shao De	2	0	100%	None
Committee Member	Su Jin Jun	2	0	100%	None
Other mentionable items: The state of operations of Remuneration Committee in FY 2025
Date of Meeting	Major Resolutions			Results of Remuneration Committee's Resolution	The Company's Response to the Remuneration Committee's Opinion
2025.2.26
5th Session,
6th Meeting	1. To discuss the allocation of compensation for employees and directors for FY 2024.
2. To discuss the remuneration for the directors and managerial personnels for FY 2025.			The resolution is passed with no objection by all attending members.	Presented to the Board of Directors, the resolution is passed with no objection by all attending directors.
2025.11.11
5th Session,
7th Meeting	1. To discuss the remuneration for the directors and managerial personnels for FY 2026.
2. To discuss the distribution of year-end bonus for the chairman and managerial personnels for FY 2025.			The resolution is passed with no objection by all attending members.	Presented to the Board of Directors, the resolution is passed with no objection by all attending directors.
Principal Annual Duties of the Remuneration Committee of the Company:
The remuneration committee shall exercise the care of a good administrator in faithfully performing the official powers listed below, and shall submit its recommendations for deliberation by the Board of Directors:
(1) Prescribe and periodically review the performance evaluation standards, annual and long-term performance goals as well as remuneration policy, system, standards, and structure for directors and managerial officers.
(2) Periodically evaluate the status of attainment of goal of directors and managerial officers and prescribe the content and amount of remuneration individually based on the evaluation results.
1. If the board of directors declines to adopt or modifies a recommendation of the remuneration committee, it should specify the date of the meeting, session, content of the motion, resolution by the board of directors, and the Company's response to the remuneration committee's opinion (e.g., the remuneration passed by the Board of Directors exceeds the recommendation of the remuneration committee, the circumstances and cause for the difference shall be specified): None.
2. Resolutions of the remuneration committee objected to by members or expressed reservations and recorded or declared in writing, the date of the meeting, session, content of the motion, all members' opinions and the response to members' opinion should be specified: None.

2.3.5 Fulfillment of CSR and Deviations from the "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies"

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| 1. Does the company assess ESG risks associated with its operations based on the principle of materiality, and establish related risk management policies or strategies? | ☑ | | In alignment with the Company's vision and mission for sustainable development, the Board of Directors serves as the highest decision-making authority on sustainability-related matters. On February 26, 2025, the Company established a "Sustainability Development Committee," composed of three independent directors, to assist the Board in overseeing environmental, social, and governance (ESG) issues. Additionally, a "Sustainability Project Team" was formed, with the Chairman serving as the highest responsible officer. The Chairman's office is the driving unit, working with senior executives from various fields to review the Company's core operational capabilities and develop sustainability plans.

The "Sustainability Project Team" acts as a cross-departmental communication platform for vertical integration and horizontal coordination. The team is divided into five functional sub-groups: the Environmental Sustainability Group, Social Responsibility Group, Corporate Governance Group, Risk Management Group, and Information Security Group. These groups identify sustainability issues that are critical to the Company's operations and of concern to stakeholders. They formulate response strategies and work guidelines, determine the resources and plans required by various departments, and drive their implementation. The team also tracks operational effectiveness to ensure that sustainability strategies are fully integrated into the Company's daily operations.

The key points of the Sustainability Project Team meeting for the year 2025 are: (1) Identify the sustainable issues that need to be addressed and develop corresponding action plans; (2) Discuss the goals and policy adjustments related to sustainability issues; (3) Develop and implement annual sustainable development plans; (4) Supervise the sustainable development program and its implementation performance; (5) Preparation of the Sustainability Report.

The Sustainability Project Team reports to the Board of Directors at least once a year on the implementation status of sustainable development. The most recent report to the Board of Directors was made on August 13, 2025.

The execution progress of GHG inventory and verification is reported quarterly to the Board of Directors. A total of four reports were made to the Board of Directors on February 26, 2025, May 14, 2025, August 13, 2025, and November 11, 2025. The Board of Directors' oversight of sustainability development:

The Board of Directors has heard the sustainability report by the Committee at least once a year to review the relevant execution content and direction. The Board of Directors continues to monitor the risks and opportunities associated with climate change. It reviews quarterly progress reports on the implementation of greenhouse gas inventory and verification to ensure effective tracking of progress. To strengthen corporate governance and the role of the Board of Directors, the Board established a Risk Management Committee in 2024 and a Sustainability Development Committee in 2025. All of the above are completed under the strong support and supervision of the Board of Directors towards sustainable development. The Board of Directors continuously evaluates the feasibility of various sustainable development strategies, pays attention to progress and conducts reviews, provides professional advice as a reference for adjustments, when necessary, as well as supervises the team to make adjustments. | None |

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| Evaluation Item | Implementation Status | | | | Deviations from
"the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEs Listed
Companies" and
Reasons |
| --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | |
| 2. Does the company establish exclusively (or concurrently) dedicated first-line managers authorized by the board to be in charge of proposing the corporate social responsibility policies and reporting to the board? | ✓ | This disclosure covers sustainable business performance from January to December 2025, with the boundary of risk assessment mainly focused on the Company. The scope includes subsidiaries in Taiwan and Japan (note: the Japanese subsidiary completed its liquidation and dissolution on December 4, 2025).
The Company conducts its analysis based on the materiality principle outlined in the sustainability report, engaging in communication with internal and external stakeholders. A "Material Topics Impact Assessment Questionnaire" is completed and statistically analyzed. The Company also reviews domestic and international research reports, literature, and integrates evaluation data from various departments and subsidiaries to assess sustainability issues of material significance. Based on this, the Company formulates effective risk management policies and procedures for identifying, measuring, evaluating, monitoring, and controlling risks, along with concrete action plans to mitigate the impact of related risks.
Based on the assessed risks, the following risk management policies or strategies are formulated: | | | None |
| | | Issues | Risk Assessment Item | Risk Management Strategy | |
| | | Environmental | Environmental impact and management | 1. The production environment and manufacturing process of Qingpu plant of the Company is certified with ISO9001 certification. Various internal management measures related to the environment are established for compliance.
2. The Company has established an Environmental Health and Safety (EHS) Department and appointed dedicated personnel to manage the operations related to EHS, environmental protection, occupational safety and health, etc. In addition, the Company regularly conducts fire drills and educational and promotional campaigns, providing a safe and healthy working environment for employees.
3. The Company regularly conducts audits on greenhouse gas emissions (CO2), as well as electricity and water usage, and waste generation, etc. The Company will continue to implement energy-saving and carbon-reduction policy and comply with various environmental regulations. The Company also regularly submits reports, and the implementation status will be verified by the Internal Audit Unit.
4. The Company, based on the "Task Force on Climate-related Financial Disclosures (TCFD)" framework, has established a cross-departmental Sustainability Project Team to identify potential climate-related risks and opportunities. The team has identified the three most critical transition risks, two physical risks, and two opportunities. | |
| Social | Product safety
Community Development
Community Welfare | 1. The products of the Company are produced in accordance with the relevant production regulations in various countries and are strictly controlled and inspected by the Quality Control Department to ensure stable and safe product quality, as well as the labeling is in compliance with regulations.
2. The Company strictly complies with the relevant laws and regulations related to trade, intellectual property management, and import/export control of different countries. All export products also meet local standards, ensuring all products and services comply with laws and regulations.
3. The Company has established a Customer Service Department and a Technical Support Department, providing customers with professional consultation and after-sales services. The Company emphases on customer satisfaction. | | | |

48 -

| Evaluation Item | Implementation Status | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- |
| Yes | No | Abstract Explanation |
| | | | | 4. Abnova values community development, with its community engagement scope covering its operational locations, including the Taipei headquarters and the Zhongli Qingpu plant. The company aims to enhance local employment opportunities by hiring talent from the areas where it operates, establishing a direct connection with the local community and promoting regional prosperity. In addition, in support of domestic cultural development, Abnova has set up an art corridor within the company to display oil paintings and watercolors by local artists, bridging the gap between employees and art, while also creating a pleasant work environment. | |
| Items | Allocate Resources | Results | Number of People Reached or Target Audience | Social Impact |
| Employment of Local Workforce | Providing Community Job Opportunities | In 2025, Abnova hired 29 local employees at the Taipei headquarters, with a local employment rate of 97%, and 58 local employees at the Zhongli Qingpu plant, with a local employment rate of 97%. | Abnova currently employs a total of 87 staff members. | In response to local government initiatives, Abnova enhances employment rates by offering local job opportunities. This not only helps retain talent but also promotes economic development, strengthens local identity, and achieves mutual prosperity with the community. |
| Abnova Art Corridor | Expenditure related to the artwork exhibition is approximately NT$25,000. | The art corridor provides employees with a work environment enriched with artistic and cultural ambiance, offering a visually soothing experience that helps relieve stress and enhance enjoyment, while also improving employees' aesthetic literacy. | Abnova employs 90 staff members, with approximately 50 customers, suppliers, and guests regularly visiting. | In support of domestic cultural development, the company showcases oil paintings, watercolors, and other art pieces, attracting appreciation and emotional connection from its audience towards art. |

| Evaluation Item | Implementation Status | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- |
| Yes | No | Abstract Explanation |
| | | | | 5. Abnova is dedicated to promoting social welfare activities, giving back to the community with a caring heart, and supporting disadvantaged social groups. | |
| Activities | Allocate Resources | Results | Number of People Reached or Target Audience | Social Impact |
| Corporate governance | Legal compliance
Strengthening the functions of directors
Stakeholders’ communication | 1. The Company has established "Sustainable Management Best Practice Principles" and related regulations to promote sustainable development and review the effectiveness of implementation. Personnel related regulations and remuneration policy are meeting the reasonable standards in the industry, and employee performance review is integrated with sustainable management policy, and "Regulations Governing Reward and Punishment" also established for compliance.
2. The Company has set up a Legal Office, a Quality Assurance, Audit, Certification Department, and an Auditing Office to provide relevant regulatory consultations and regularly ensure compliance with all operation-related laws and regulations.
3. The Company has purchased D&O Liability insurance for directors (including managerial personnel). The insurance coverage for FY 2025 is NT$ 85 million. Information relating to liability insurance such as the insured parties, coverage amount, scope, period, premium, etc. has been reported to the Board of Directors on August 13, 2025.
4. The Company has arranged various types of training courses for directors, and all directors have completed 6 hours or more continuing education/training. The latest information on amendment of regulations or promotional matters will also be regularly provided. |

49 -

The Company has established a robust environmental management system (EMS) and continues to monitor and improve its performance. The key environmental management initiatives and implementation status promoted in 2025 include the following:
• Environmental monitoring: The Company outsourced 4 environmental monitoring audits: The Zhongli Qingpu plant audits were conducted on June 9, 2025, and December 8, 2025, while the Taipei audits took place on June 16, 2025, and December 11, 2025. The monitoring results were satisfactory, with no major deficiencies or abnormalities reported.
• The company has commissioned a qualified testing firm to conduct semi-annual inspections of the high- and low-voltage power equipment at the Zhongli Qingpu Plant. The inspections were carried out on February 15 and August 4, 2025, with all results deemed satisfactory. The findings have been duly submitted to the relevant regulatory authorities for record-keeping in accordance with applicable regulations.
• The Company has installed environmental monitoring and pollution prevention facilities, designed to provide immediate alerts and notify designated personnel in the event of an anomaly. These systems include temperature monitoring for refrigeration equipment, CO2 concentration monitoring, and smoke detection. Through these alert systems and standardized operating procedures (SOPs), we mitigate the potential environmental impact of abnormal events. In 2025, no anomalies were recorded across all environmental monitoring categories.
• In terms of energy conservation and carbon reduction, measures such as temperature control, energy-saving mechanisms, replacing high-energy-consuming equipment, and selecting energy-efficient models were implemented to effectively save electricity and reduce greenhouse gas emissions. In 2025, the Company's electricity consumption decreased by 61,611 kWh (a reduction of 3.5%) compared to 2024. Greenhouse gas emissions in 2025 were reduced | | | No major deviation |

50 -

Evaluation Item	Implementation Status	Deviations from “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
Yes	No	Abstract Explanation
(2) Does the company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment?	✓
(2) The Company's energy consumption statistics cover the Abnova Taipei Headquarters and the Zhongli Qingpu Plant. (Subsidiaries are excluded as they have no physical operating premises or employees and thus consume no energy.) The statistical data is based on the Company's internal inventory. The Company's energy profile is straightforward, consisting of non-renewable fuels and electricity. "Purchased electricity" is the primary energy source for operations, while non-renewable fuels—namely gasoline and diesel—are mainly used for emergency generators, boilers, and corporate vehicles. The Company does not currently use renewable energy, nor is there any self-generation or sale of energy.
	2025	2024
Energy Type	Energy Consumption	unit
GJ/Revenue (Million NTD)
Non-renewable Energy-Direct	Gasoline	3,789
Diesel	4,656	L
Non-renewable Energy-Indirect	Purchased Electricity	1,698,180
Renewable Energy	Renewable & Self-generated Energy	0
Total	6,403	18.23

Energy conversion factors for various energy sources are calculated based on the "Table of Heat Values per Unit of Energy Product" published by the Energy Administration, Ministry of Economic Affairs (MoEA):

FY 2024 Coefficients: Gasoline: 7,800 kcal/L, Diesel: 8,400 kcal/L, Electricity: 860 kcal/kWh, Unit Conversions: * 1 kcal = 4.187 kilojoules (kJ), 1,000,000 kJ = 1 gigajoule (GJ)

FY 2025 Coefficients: Gasoline: 7,520 kcal/L, Diesel: 8,629 kcal/L, Electricity: 860 kcal/kWh, Unit Conversions: * 1 kcal = 4.187 kilojoules (kJ), 1,000,000 kJ = 1 gigajoule (GJ)

Statistical data is derived from annual Taiwan Power Company (Taipower) electricity consumption records and official petroleum procurement logs.
Data Presentation: Consumption figures are rounded to the nearest integer; energy intensity figures are rounded to the second decimal place.
Energy Intensity Calculation: Based on a consolidated revenue of NT$351.30 million for 2025 and NT$355.26 million for 2024.

Energy Management Plan and Implementation Status

1. Energy Consumption Overview and Energy-Saving Targets

Purchased electricity is the Company's primary source of energy. To continuously enhance energy efficiency and implement carbon reduction policies, the following energy-saving targets have been established:

Short-term Target: Achieve an annual reduction in electricity consumption of at least 1% compared to the previous year.
Mid-to-Long-term Target: Achieve a 10% reduction in electricity consumption by 2030, relative to the baseline year (2024).

2. 2025 Energy Saving Performance

In 2025, actual electricity consumption decreased by 3.5% compared to 2024, representing a reduction of 61,611 kWh. This performance exceeded the annual reduction target of 1%, demonstrating the concrete effectiveness of our energy-saving initiatives and significantly improving overall energy management efficiency.

3. Implementation of Energy-Saving Measures

(1) Comprehensive Upgrade to Energy-Efficient Lighting

Lighting fixtures in office areas, laboratories, and public corridors have been fully replaced with high-efficiency LED lighting. The superior illuminance and luminous efficacy of LEDs allow for a reduction in the total number of fixtures, ensuring high lighting quality while effectively lowering electricity consumption and maintenance costs.

(2) Implementation of HVAC Temperature Control Mechanisms

In alignment with government energy policies, air conditioning temperatures in office and operational areas are standardized at 26°C. The Company also promotes energy-saving awareness among employees and conducts regular | |

52 -

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| (3) Does the company evaluate the potential risks and opportunities in climate change with regard to the present and future of its business, and take appropriate action to counter climate change issues? | ☑ | | equipment maintenance to ensure optimal operational efficiency and prevent energy waste.

(3) Replacement of High-Energy-Consumption Equipment
Aging, high-consumption refrigeration and HVAC units are being phased out and replaced with models featuring Energy Efficiency Labels or upgraded with high-efficiency compressors. This initiative enhances energy utilization and reduces power consumption. The boiler at the Company’s Zhongli Qingpu Plant has experienced a gradual decline in energy efficiency due to its extended service life, resulting in an increase in fuel consumption for 2025. In late 2025, the Company procured and installed a new energy-efficient boiler. Upon the commencement of the new equipment's operations, thermal efficiency is expected to improve progressively throughout 2026, thereby reducing fuel demand. This initiative is anticipated to further strengthen the Company’s performance in energy management and greenhouse gas emissions reduction.

(4) Energy Management of Corporate Vehicles
The Company maintains one corporate vehicle primarily for logistics between the Taipei Headquarters and the Chungli Plant, as well as for general business use. A low-fuel-consumption model was selected to minimize fuel usage and carbon emissions.

(3) Climate change may lead to global resource shortages, transportation disruptions, or impacts on living conditions, which could result in increased operational costs for businesses. In response to the growing global focus on climate change, the Company’s dedicated Environmental Safety Department continuously monitors updates to environmental regulations and ensures that the Company's operating procedures and policies are promptly revised to remain in compliance with legal requirements.

The assessment of climate change-related risks and opportunities for the merged company, along with corresponding mitigation measures, is presented in this annual report under section 2.3.6 Climate-Related Information of TWSE/TPEx Listed Company

The Company’s Commitment to Biodiversity and Concrete Achievements:
Commitment to Biodiversity:
The Company highly values biodiversity and the protection of the natural environment. We are committed to minimizing the impact on ecosystems and habitats within our operations and supply chain management, while adhering to relevant environmental regulations and international sustainability principles. Through risk assessments and environmental management mechanisms, we continuously promote resource conservation, pollution prevention, and ecological protection measures. Furthermore, we collaborate with employees, suppliers, and communities to advocate for the sustainable use of natural resources and maintain the long-term stability of ecosystems and biodiversity. Moving forward, we will continue to enhance resource efficiency, taking concrete actions to support ecological protection and environmental sustainability. | |

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| Evaluation Item | Implementation Status | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | |
| (4) Does the company take inventory of its greenhouse gas emissions, water consumption, and total weight of waste in the last two years, and implement policies on energy efficiency and carbon dioxide reduction, greenhouse gas reduction, water reduction, or waste management? | ✓ | Concrete Actions and Achievements for Biodiversity:
1. Operational Environmental Management
We evaluate key ecological areas surrounding our operating sites to minimize the impact of business activities on the natural environment. By establishing green zones and planting vegetation at our facilities, we enhance habitats for insects and birds.
2. Pollution and Resource Management
We strive to reduce wastewater and waste while improving the efficiency of energy and water resource utilization. These efforts aim to lower energy consumption and prevent operational activities from damaging the ecological environment.
3. Promotion of Green Procurement
We require our suppliers to join us in our commitment to environmental and ecological protection. Priority is given to purchasing products and packaging materials that possess environmental certifications or come from sustainable sources.
4. Education and Internal Awareness
We conduct ecological protection training for employees to increase the focus on sustainability, greenhouse gases, and other climate and environmental issues. We actively promote the concepts of environmental protection and natural conservation.
5. Forest Resource Protection
The Company is dedicated to reducing the impact of paper usage on the natural environment. We continuously decrease paper consumption by promoting electronic operations, paperless workflows, and digital document management. Measures include providing customers with electronic catalogs and product introductions instead of printed brochures and sending dividend notices electronically rather than by mail. Furthermore, we encourage employees to implement double-sided printing and paper recycling to enhance resource efficiency. In 2025, through these promotion measures, paper consumption decreased by 15% compared to the previous year, and related expenditures were reduced by 24%, demonstrating the progressive effectiveness of our efforts to reduce paper use and protect forest resources.

(4)
I. Greenhouse Gas Emissions:
Scope of Data Coverage: The greenhouse gas (GHG) emissions data cover all operational sites of Abnova, including the Taipei headquarters and the Zhongli Qingpu Plant. As the merged subsidiaries do not have substantive operational sites or employees, no GHG emissions are generated. In 2024 & 2025, the merged company completed the verification of Scope 1 and Scope 2 GHG emissions, with 2024 designated as the base year: | | | |
| Item | | FY 2025 | FY 2024 | | |
| Greenhouse Gas Emissions - Scope 1 (mt of CO2e) | | 27.52 | 24.55 | | |
| Greenhouse Gas Emissions - Scope 2 (mt of CO2e) | | 804.94 | 869.34 | | |

| Evaluation Item | Implementation Status | | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | | |
| | | | Emission per Unit of Revenue (Note 1)
(mt of CO_{2}e / million NTD) | 2.37 | 2.52 | |
| Note 1: Based on the consolidated greenhouse gas emissions (Scope 1 and Scope 2) divided by consolidated revenue (in NT$ million), the calculation is based on a consolidated revenue of NT$351.30 million for 2025 and NT$355.26 million for 2024.

Note 2: The greenhouse gas (GHG) emissions data have been self-assessed by the Company and have not yet been verified by a third party.

(2) GHG reduction targets:
• Short-term Target: Achieve an annual reduction in greenhouse gas emissions of at least 1% compared to the previous year.
• Mid-to-Long-term Target: Achieve a 10% reduction in greenhouse gas emissions by 2030, relative to the baseline year (2024).

(3) GHG Reduction Management Policy:
A. The Company has established the “Greenhouse Gas Inventory and Assurance Plan” strictly adhering to relevant regulations and international standards. We are implementing internal greenhouse gas (GHG) inventory processes in stages and will gradually complete third-party external assurance to ensure the integrity, accuracy, and reliability of the inventory data. This serves as a critical foundation for subsequent reduction management and improvement measures.
B. 2024 has been designated as the baseline year for GHG inventory. Inventory results indicate that the Company's primary source of GHG emissions is Scope 2 purchased electricity. To reduce these emissions, we have planned the gradual replacement of high-energy-consumption equipment, prioritizing models with energy-saving and power-efficient benefits during equipment upgrades to enhance energy efficiency and reduce electricity demand and emissions.
C. To further improve power efficiency, the Company has fully replaced lighting in all office spaces and public areas with high-efficiency, energy-saving LED fixtures. This initiative reduces lighting power consumption while maintaining lighting quality and the comfort of the employee work environment.
D. The Company continues to promote various energy-saving management measures, including standardizing air conditioning temperatures at 26°C or above, enabling power-saving modes on all office and production equipment, and conducting regular reviews and analyses of electricity usage. These actions provide a basis for improving energy efficiency, implementing energy-saving and carbon-reduction initiatives, and progressively achieving GHG reduction targets.
E. We promote energy-saving and carbon-reduction concepts among all employees, encouraging habits such as turning off unused power switches, implementing air conditioning temperature controls to avoid excessive power consumption from low temperatures, and taking public transportation for commuting. By integrating these habits | | | | | | |

55 -

56 -

| Evaluation Item | Implementation Status | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- |
| Yes | No | Abstract Explanation |
| | | | into daily life, we work together to protect the environment and ecology.
(4) Achievement of GHG reduction targets:
In 2025, GHG emissions were reduced by 6.87% compared with 2024, achieving the goal of GHG emission reduction by more than 1%.

II. Water Consumption
The water consumption data for 2025 and 2024 covers all operational sites of Abnova (Taipei Headquarters and the Zhongli Qingpu Plant). As the consolidated subsidiaries have no physical operational sites or employees, they do not generate water consumption. The year 2024 serves as the baseline year.
(1) The water usage and waste data for the last two years are summarized as follows:

item	FY 2025	FY 2024
Water consumption(m³)	4,322	4,775
Waste (m³/ Revenue -Million NTD)	12.30	13.44

(Note 1) Water intensity is calculated based on consolidated water consumption divided by consolidated revenue (in NT$ million). The consolidated revenue was NT$351.30 million for 2025 and NT$355.26 million for 2024.

(Note 2) The water supply used by the consolidated company is sourced from the Taiwan Water Corporation, with no extraction of groundwater or other water sources.

(2) Water Consumption Reduction Targets:
- Short-term Target: Achieve an annual reduction in water consumption of at least 1% compared to the previous year.
- Mid-to-Long-term Target: Achieve a 10% reduction in water consumption by 2030, relative to the baseline year (2024).

(3) Water Consumption Reduction Management Policies:
A. Water Risk Awareness and Reduction Target Management
In response to the impact of climate change on water cycles and precipitation patterns, the Company continues to strengthen its water conservation and management practices. In addition to regular awareness campaigns among employees, we have established annual and long-term water reduction targets. We continuously refine our management performance through periodic reviews and tracking of water usage metrics.
B. Implementation of Water-Saving Equipment and Process Optimization
The Company is gradually replacing high-water-consumption equipment by installing water-saving faucets and high-efficiency cleaning systems to improve overall water utilization. Simultaneously, we optimize operational workflows and cleaning methods to lower unnecessary water demand and prevent redundant or excessive usage.
C. Water Recycling and Reuse
The Company promotes water recycling and reuse initiatives by diverting rainwater or verified reusable clean wastewater for non-potable purposes, such as landscape irrigation and general cleaning. These measures

III. Waste Management
Data Coverage:
The waste generation data for 2025 and 2024 covers all operational sites of Abnova (Taipei Headquarters and the Zhongli Qingpu Plant). As the consolidated subsidiaries have no physical operational sites or employees, they do not generate waste. The year 2024 serves as the baseline year.
(1) Waste Statistics for the Past Two Years:
Year Non-Hazardous Waste (metric tons) Hazardous Waste (metric tons) Total weight (metric tons) Waste Intensity (metric tons / NT$ million revenue)
2025 5.06 0.51 5.57 0.16
2024 5.30 0.50 5.81 0.16
Note 1: The calculation is based on total waste generated by the consolidated company divided by consolidated revenue (in NT$ million). Consolidated revenue was NT$351.30 million in 2025 and NT$355.26 million in 2024.
Note 2: Hazardous waste generated by the Company consists of chemical liquid waste.
(2) Waste reduction targets
• Short-term target: Reduce total waste generation by more than 1% annually compared to the previous year.
• Mid- to long-term target: Achieve a 10% reduction in total waste generation by 2030 compared to the base year (2024).
(3) Promoting circular economy and waste reduction policies
To effectively reduce waste and improve the efficiency of resource use, the following circular economy initiatives and waste reduction policies have been implemented:
A. Reuse of cold chain insulation materials
During cold chain transportation, refrigerants are recycled and reused. Through this circular mechanism, the Company can save approximately NT$30,000 annually in insulation material procurement costs, effectively reducing resource | | | | |

B. Reuse of packaging materials to reduce single-use waste
Regarding packaging materials such as intact and uncontaminated Styrofoam boxes, cartons, and bubble wrap, the Company tries to reuse them whenever possible. This practice reduces single-use packaging waste production and saves approximately NT$24,000 annually, implementing resource recycling and lowering environmental burden.

C. Waste Reduction and Resource Recycling Management
The Company adopts waste reduction and resource recycling as key management objectives. Through measures such as process optimization, packaging improvements, and avoiding excessive packaging, waste production in the manufacturing process can be reduced while promoting paper recycling and the use of recycled materials. Additionally, environmentally friendly (green) products are prioritized in the procurement of packaging materials, stationery, and printed materials used in operations.

D. Digitalization of dividend distribution to reduce paper use
The Company offers shareholders electronic dividend notifications as an alternative to traditional paper mail, reducing paper consumption through concrete actions and supporting sustainable development and environmental protection ideals.

E. Digitalization of customer communication
The Company provides electronic catalogs and digital or multimedia product introductions instead of printed brochures, reducing paper usage while enhancing communication efficiency.

F. Digitalization of internal processes
The Company utilizes electronic approval systems, human resource management systems, and other internal management systems to minimize paper-based operations. In 2025, paper procurement decreased by 15% compared to 2024, demonstrating the Company’s commitment to energy-saving and carbon-reduction in operational management.

(4) Achievement of Waste Reduction Targets
In 2025, total waste generation decreased by 4.13% compared to 2024, successfully achieving the annual reduction target of more than 1%. | |
| 4. Social issues
(1) Does the company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights? | ☑ | | (1) To uphold the corporate philosophy of respecting human rights, the Company complies with relevant regulations such as the Labor Standards Act and the Gender Equity Working Act and has established a formal Human Rights Policy. This policy applies to all executives and employees, affiliates, suppliers, customers, and other stakeholders. Approved by the Board of Directors, the Human Rights Policy serves as the supreme guiding principle for Abnova’s human rights governance.

The Company recognizes and supports the principles and spirit disclosed in international human rights conventions, including the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social and Cultural Rights (ICESCR), the Convention on the Elimination of All Forms of Discrimination against Women | No major deviation |

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| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| | | | (CEDAW), the Convention on the Rights of the Child (CRC), the Convention on the Rights of Persons with Disabilities (CRPD), the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD), the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families (ICMW), the International Convention for the Protection of All Persons from Enforced Disappearance (ICPPED), and the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (CAT). | |
| | | | Based on these frameworks, the Company has formulated its Work Rules, personnel management regulations, and human rights policies to protect the fundamental rights of employees and stakeholders, fulfilling its sustainable development policies and mission. For the full content of the Human Rights Policy, please refer to the Abnova official website: Abnova Human Rights Policy | |
| | | | Human Rights Governance Structure
The Company has established a human rights governance structure with the Board of Directors as the highest governing body, responsible for overseeing and making decisions on the Company’s overall human rights policies and management approaches. Under the Board, a functional committee, the “Sustainable Development Committee”, has been established to coordinate and promote sustainability-related matters and to supervise the formation of a cross-departmental “Sustainability Task Force”, which is responsible for the execution and promotion of various sustainability strategies and action plans.
The Sustainability Task Force, based on the nature of business operations and work responsibilities, is composed of five functional groups, namely: the Environmental Sustainability Group, the Social Responsibility Group, the Corporate Governance Group, the Risk Management Group, and the Information Security Group. Each group performs its respective duties and collaboratively advances the Company’s sustainability-related initiatives. Among these, the Social Responsibility Group is responsible for organizing and promoting the Company’s human rights management-related matters, including the implementation of human rights policies, the identification and management of human rights risks, and the arrangement of relevant education and training and awareness programs, so as to ensure that the Company avoids any form of human rights infringement in the course of its operations and continuously strengthens the protection of human rights for employees, suppliers, and other stakeholders.
Each group regularly reports its progress and implementation results to the Sustainable Development Committee, which summarizes the relevant information and reports to the Board of Directors on the implementation status and outcomes of the Company’s human rights management at least once a year, so as to ensure that the Board can effectively oversee and monitor the advancement of related matters. The most recent report to the Board of Directors on human rights management matters was made on August 13, 2025. | |

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| Evaluation Item | Implementation Status | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | |
| | | | Human Rights Policy | Specific Measures | |
| | | | Workplace health and safety | • The Company has passed the ISO 9001 Quality Management System certification and, in 2025, commissioned external professional institutions to conduct environmental monitoring inspections (twice at the Zhongli Qingpu Plant and twice at the Taipei Neihu Office). No material weakness or abnormalities were identified, ensuring a safe, healthy, and comfortable working environment.
• In accordance with relevant labor health protection regulations, on-site occupational health services are provided monthly by contracted professional medical personnel. A total of 12 sessions were conducted in 2025, offering health consultations and management advice to promote employee well-being.
• The Company provides all employees with one free annual health check-up to help monitor their health conditions and facilitate early health management.
• Fire safety education and fire drills are conducted semi-annually to enhance employees’ ability to identify fire risks and respond to emergencies. | |
| | | | Elimination of unlawful discrimination and ensuring equality in the workplace | • In accordance with the Company’s human resource management regulations, such as “Human Rights Policy” and “Work Rules,” the Company adheres to principles of fairness and equality in recruitment, appointment, promotion, and work assignments. No discrimination of any form or differential treatment is permitted on the basis of gender, sexual orientation, age, race, place of origin, religion, political affiliation, disability, or any other legally protected identities. The Company is committed to safeguarding human rights in the workplace and providing a respectful, diverse, and equal working environment. | |
| | | | Prohibition of forced labor and compliance with the labor laws of the local government | • The Company complies with applicable labor laws and, in accordance with its “Human Rights Policy” and “Work Rules,” strictly prohibits any form of forced labor, servitude, or coercion, ensuring employees are not compelled to engage in involuntary work and thus protecting the basic working rights of employees.
• In addition to the leave system provided under the Labor Standards Act, the Company offers benefits exceeding legal requirements, including three days of paid sick leave per year and one day of marriage leave for the marriage of employees’ children or siblings. | |
| | | | Supporting employee well-being and work-life balance | • The Company implements a comprehensive leave system, encourages a combination of labor and rest to achieve work-life balance, and fosters a healthy and sustainable workplace environment.
• A variety of employee benefits and health promotion initiatives are provided. The Company also organizes activities such as annual banquets, departmental gatherings, and festive events to strengthen team cohesion and interpersonal relationships. | |

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| Evaluation Item | Implementation Status | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- |
| Yes | No | Abstract Explanation |
| | | | | Facilities such as complimentary coffee machines, beverage stations, and occasional afternoon refreshments are provided to create a comfortable and welcoming workplace environment and enhance employee well-being. | | |
| Requiring suppliers to comply with human rights regulations | | The Company requires its business partners to comply with human rights-related laws and regulations and adhere to the fundamental principles of respect for human rights. | |
| Scope of human rights due diligence: Company employees
Three major human rights issues identified in 2025: Workplace health and safety, privacy, and labor rights (discrimination and forced labor)
Execution steps for human rights due diligence:
1. Integrate due diligence into corporate policies and governance structure
Establish formal human rights and environmental policies and incorporate due diligence processes into corporate governance and internal management systems.
2. Identify and assess actual and potential human rights impacts
Regularly identify and consolidate human rights issues arising from or are associated with the Company and its value chain.
3. Prevent and mitigate potential human rights impacts
Take appropriate preventive or mitigation measures when potential risks are identified.
4. Cease or reduce actual human rights impacts
Take prompt and proactive corrective actions when human rights impacts occur.
5. Establish grievance and remediation mechanisms
Implement clear reporting procedures and grievance channels for stakeholders to act accordingly and ensure their safety.
6. Monitor, track, and disclose implementation results
Continuously monitor the effectiveness of due diligence measures.
The Company conducts human rights due diligence with employees as the primary focus, assessing and managing risks related to workplace health and safety, privacy, and labor rights (including discrimination and forced labor). The mitigation and remediation measures for 2025 are as follows: | |
| Type of Risk | Risk Description | Risk Mitigation Measures in 2025 | Remedial Measures | |
| Workplace health and safety | Employees may face occupational hazards or health risks due to | The Company has passed ISO 9001 Quality Management System Certification and established internal safety management systems and operating procedures in accordance with occupational safety and | The Company continues to promote occupational safety and health | |

| Evaluation Item | Implementation Status | | | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | | | |
| | | | equipment operation, workplace environment, or improper procedures. | health regulations and management principles, continuously strengthening safety culture and risk prevention mechanisms, and regularly reviewing and optimizing various safety management measures.
• Safety management of equipment and workplace environments is implemented, including regular equipment inspections, maintenance, and protective measures, along with standard operating procedures (SOPs). At the same time, through onboarding training for new employees and regular operational safety training, the Company enhances employees’ ability to identify equipment operation and work-related risks, thereby reducing the likelihood of occupational accidents.
• Monthly on-site occupational health services are provided, including health consultations and psychological counseling. In addition, the Company disseminates health promotion and safety awareness information via weekly emails to enhance employees’ health awareness, continuously care for employees’ physical and mental well-being, and foster a healthy and friendly workplace environment.
• The Company provides all employees with one free annual health check-up and offers necessary health management recommendations and follow-up actions based on the results, helping employees monitor their health conditions early and prevent disease.
• The Company conducts annual fire safety education and on-site fire drills to enhance employees’ ability to identify fire risks and respond to emergencies. It also establishes comprehensive emergency response mechanisms and disaster mitigation measures to ensure prompt and effective responses to unexpected incidents, thereby reducing the risk of personal injury and property loss. | management and health promotion initiatives, and, through systematic management and regular review mechanisms, strives to establish a safe, healthy, and employee-friendly working environment. In the event of an occupational accident, the Company immediately activates emergency response and reporting procedures, provides necessary medical assistance and care, conducts incident investigations and root cause analyses, and implements and tracks corrective actions to prevent recurrence of similar incidents. No occupational hazards occurred in 2025. | | |

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| Evaluation Item | Implementation Status | | | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | | | |
| | | | | • The Company regularly conducts workplace safety inspections and identifies potential hazards. Through employee feedback and internal review mechanisms, it continuously improves operating procedures and the working environment to enhance overall occupational safety and health management performance. | | | |
| | | Privacy | Employees’ personal data may be exposed to risks of leakage or misuse during collection, processing, or use due to inadequate management or information security incidents. | • The Company has established a “Personal Data Protection Management Policy” in accordance with the Personal Data Protection Act, governing the collection, processing, and use of personal data. It also implements access control over data and internal management mechanisms.
• Annual information security and personal data protection training and awareness programs are conducted to increase employees’ awareness of personal data protection and information security risks.
• Information system security measures are strengthened, including access control, account management, and anomaly monitoring mechanisms, so that the risk of data leakage can be reduced.
• The Company regularly reviews and updates its information security management measures, continuously strengthens personal data protection and information security management mechanisms, and conducts annual disaster recovery drills to enhance its capability to respond to information security risks. | In the event of a personal data or cybersecurity incident, incident reporting and response procedures are immediately activated, followed by investigation, risk assessment, and system improvements, with necessary corrective actions taken to reduce the impact of data leakage and unauthorized use. No security incidents or violations of the Personal Data Protection Act occurred in 2025. | | |
| | | Labor rights (discrimination and forced labor) | Employees may face risks of discrimination, unfair treatment, or forced labor in recruitment, appointment, promotion, compensation, or work assignments. | • The Company complies with applicable labor laws and regulations and, in accordance with its “Human Rights Policy” and “Work Rules,” strictly prohibits any form of forced labor, servitude, or coercion of employees to engage in involuntary work to safeguard employees’ fundamental labor rights.
• In accordance with its “Human Rights Policy” and relevant human resource management regulations, the Company adheres to principles of fairness and | Grievance and reporting channels are in place. Any reported cases are investigated and handled in accordance with Company procedures, with corrective or disciplinary actions | | |

64 -

| Evaluation Item | Implementation Status | | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | | |
| (2) Does the company have reasonable employee benefit measures (including salaries, leave, and other benefits), and do business performance or results reflect on employee salaries? | ☑ | | | objectivity in recruitment, appointment, promotion, compensation, and work assignment processes. No discrimination, harassment, or unequal treatment based on gender, sexual orientation, age, race, place of origin, religion, political affiliation, disability, or any other legally protected circumstances is allowed, and the Company is committed to providing a respectful, diverse, and equal workplace environment.
• The Company regularly conducts training on human rights and workplace respect to enhance employees’ awareness of workplace equality and human rights protection. In 2025, the course “Workplace Equality Regulations Explained” (1.5 hours) was conducted, with a total of 121.5 training hours and 81 participants, representing approximately 90% of all employees.
• The Company provides employee benefits that exceed the requirements of the Labor Standards Act, such as three days of paid sick leave per year and one day of marriage leave for employees’ children or siblings’ weddings, to enhance employee well-being and work support.
• The Company has established employee grievance and communication channels to support the reporting of inappropriate workplace behavior or unfair treatment. Cases are investigated and handled in accordance with relevant procedures to safeguard employees’ rights and ensure workplace fairness. | taken as appropriate, and relevant systems and management processes are reviewed to continuously improve the workplace environment. No human rights-related complaints or violations occurred in 2025, and no penalties were imposed for non-compliance with human rights-related laws and regulations. | |
| | | (2) Workplace Diversity Policy:
The Company is dedicated to achieving workplace diversity and promoting gender equality by providing a dignified, safe, and equitable working environment. We ensure that employees are not subjected to discrimination, harassment, or unequal treatment based on gender, sexual orientation, age, race, place of birth, religious belief, political affiliation, physical or mental disability, or any other status protected by applicable laws. The Company maintains a balanced gender ratio and adheres to the principle of equal pay for equal work. We employ individuals across different age groups and nationalities, with a recruitment philosophy centered on professional competency and fitness for the role, thereby fully | | | | |

65 -

| Evaluation Item | Implementation Status | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- |
| Yes | No | Abstract Explanation |
| | | | realizing the concept of workplace equality. | |
| Indicator | % |
| Number of female employees out of the total number of employees | 63.33% |
| Number of female employees out of the total number of managers | 52% |
| Number of female employees out of the total number of senior executives | 66.67% |
| Number of employees aged 21-30 out of the total number of employees | 8.89% |
| Number of employees aged 31-40 out of the total number of employees | 14.44% |
| Number of employees aged 41-50 out of the total number of employees | 56.67% |
| Number of employees aged 51-60 out of the total number of employees | 18.89% |
| Number of employees aged 61 and above out of the total number of employees | 1.11% |
| Employees who are ROC citizen | 100% |
| Employees who are non-ROC citizen | 0% |
| The “average” wage gap between men and women | 13.47% |
| The “median” wage gap between men and women | 14.77% |
| Note: The Company does not offer variable bonuses.
The Company provides a healthy, safe, and supportive workplace environment that allows employees to fully utilize their skills, grow alongside the Company, and share in its business success.
Regarding employee rights and benefits, the following welfare measures are provided:
• In addition to statutory leave entitlements, the company provides employees with three days of paid sick leave annually, exceeding the requirements of the Labor Standards Act. Furthermore, employees are granted one day of wedding leave to attend the marriage of their children or siblings.
• The Company has established an Employee Welfare Committee to regularly organize various activities, provide monetary gifts/ gifts during festival seasons as well as various allowances and subsidies.
• The Company provides free coffee and beverages.
• The Company arranges a free health examination once a year.
• The Company provides group insurance for employees, enhancing work-related protection.
• The Company cares for the physical and mental well-being of employees by providing monthly on-site health services from professional medical staff, including health management consultations to safeguard employees' health. Additionally, health education seminars are held periodically to provide accurate medical knowledge. | |

66 -

The Company has established a policy to appropriately reflect business performance and results in employee remuneration:

Articles of Incorporation and Work Rules
• In accordance with the Company’s work rules, if the Company makes profits after year-end settling, after paying tax, making up losses, and setting aside a legal reserve, the year-end bonus will be distributed prior to the Chinese New Year that would depend on the actual circumstances.
• Pursuant to Article 24 of the Articles of Incorporation of the Company: "If the Company makes profits (after deducting the pretax income for remuneration to employees and directors), it shall set aside not less than 1% of its annual profit to employees as a profit sharing and not more than 3% as the compensation for directors".
• To safeguard and support frontline employees, the Company approved an amendment to the "Articles of Incorporation" during the Annual General Meeting of Shareholders on May 29, 2025. In the event the Company generates a profit (defined as pre-tax income after deducting employee compensation and director remuneration), no less than 1% of the profit will be allocated for employee compensation (of which no less than 0.5% of the profit will be distributed to frontline employees) and no more than 3% will be allocated for director compensation. The definition and scope of frontline employees are as follows: individuals who are not considered "managers" as defined by the Financial Supervisory Commission, and whose salary is lower than the salary level for frontline employees defined under the "Regulations on Salary Increases for Small and Medium Enterprises."

Overall Compensation Policy
• The Company motivates all employees to work together for the growth of the business. Each year, the Company refers to market salary levels, the economic environment, and employee performance to share the business results as follows:
(1) In accordance with the Articles of Incorporation, if the Company generates a profit (defined as pre-tax income after deducting employee compensation and director remuneration), no less than 1% of the profit will be allocated for employee compensation. In 2025, as the Company did not record a profit, no employee compensation was distributed.
(2) In accordance with the Work Rules, if there is a surplus for the year, year-end bonuses will be issued. The 2025 year-end bonuses were distributed in February 2026.
(3) In accordance with the Company's "Performance Management Regulations," employee performance appraisals are conducted twice a year. Salary adjustment evaluations for individual employees are then carried out based on the Company's operational status and the employees' specific performance results. | |

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68 -

| Evaluation Item | Implementation Status | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | |
| | | (4) Each year, outstanding employees are recognized and awarded medals and bonuses as encouragement.

Implementation of the retirement system:
Abnova has established a robust retirement system to ensure the financial security of its employees’ post-retirement. The process and conditions for retirement applications are governed by the Company’s "Work Rules" and "Retirement and Suspension Management Regulations". Employees who joined the Company before June 30, 2005 (inclusive) have the option to select the previous pension system. Under this system, the Company contributes monthly to a retirement fund, which is deposited into a designated pension account at Taiwan Bank to protect labor rights. Additionally, a Labor Retirement Fund Supervisory Committee has been established in accordance with legal requirements to oversee the fund's operation and management. The pension contributions are sufficient to cover the retirement benefits for employees who meet retirement eligibility criteria in 2025.

For employees who joined the Company on or after July 1, 2005, the Company adheres to government regulations by contributing at least 6% of their monthly salary to the Labor Pension Fund, which is stored in individual accounts managed by the Bureau of Labor Insurance (BLI). Employees may also opt to make additional voluntary contributions to their pension within the 6% monthly salary limit. In 2025, a total of 17 employees voluntarily participated in the pension contribution program, accounting for 18.89% of the workforce. | | | |
| | | Source of law | Labor Standards Act | The Enforcement Rules of the Labor
Pension Act | |
| | | Contribution method | Sufficient pension funds have contributed to the pension fund account with Bank of Taiwan for employees who are eligible for old pension scheme. Therefore, it was approved that no further contribution is needed on August 7, 2025. | At least 6% of each employee’s monthly salary is contributed to the employee's individual pension account according to the grades of labor insurance salary. | |
| | | Contribution amount | The account balance dated Dec.31, 2025 of the Labor Retirement Reserve Fund is NT$ 6,997,209. | A total of NT$ 3,477,391 was contributed to FY 2025. | |
| | | 2. No employees applied for retirement in 2025. When employees meet the eligibility criteria and apply for retirement, the Company handles such requests in accordance with relevant laws and regulations, as well as the Company’s "Work Rules" and "Management Measures for Retirement, Resignation, and Leave of Absence." Severance or retirement benefits are then paid in accordance with the law.

The Company's Pension Supervisory Committee convenes one meeting every quarter, and a total of four meetings were held in FY 2025. | | | |

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| (3) Does the company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis? | ☑ | | 4. Annually, an actuarial report on the pension plan is issued by a certified actuary to confirm that the pension contributions are adequately funded, ensuring the security of employees' future retirement benefits and demonstrating the Company's commitment to fulfilling its responsibility for employee welfare.

(3) Occupational safety and health (OSH) policy:
The design of the Company's offices and plants complied with regulations relating to fire safety and labor safety. Also, regular disinfection and cleaning are performed, and vendors are appointed to regularly measure the concentration of carbon dioxide. The Company complies with the OSH regulations, promotes workplace safety. No occupational accident was reported in 2025, achieving the goal of zero occupational accidents.
A professional medical team provides on-site medical services every month, provides health information guidance, and takes care of the physical and mental health of employees. In 2025, a total of 12 on-site health services and 1 health lecture will be held.
The Company ensures a safe and secure working environment at all of its operational sites by providing first aid kits, installing emergency eyewash stations in laboratories, and clearly marking emergency escape routes and hazard warnings for hazardous materials. These measures are in place to guarantee the safety and well-being of our employees.

Fire Risk Identification for Adverse Scenarios and Key Feasible Mitigation Measures:
1. Implementation of Fire Safety Drills and Education:
The Company continuously promotes a culture of occupational safety. The Environmental Health and Safety (EHS) Department at the Zhongli Qingpu Plant organizes annual fire and evacuation drills. In 2025, two practical fire training sessions were conducted (on June 12 and December 18), with a total of 45 participants. Each participant completed 4 hours of training, totaling 180 man-hours. The Taipei Headquarters also collaborates with the building management committee for quarterly fire inspections and drills.
2. The Zhongli Qingpu Plant conducts semi-annual inspections of high and low-voltage electrical equipment. In 2025, inspections were performed on February 15 and August 4. All results indicated normal operations with no abnormalities detected.
3. Both the Zhongli Qingpu Plant and the Taipei Office are equipped with automatic fire alarm systems, smoke extraction equipment, and emergency exit signage. Annual equipment inspections and testing are conducted to ensure optimal functionality in the event of a fire.
4. 49 fire extinguishers are installed at the Zhongli Qingpu Plant and 9 at the Taipei Headquarters. Firefighting equipment is inspected regularly, and evacuation stairs and corridors are kept clear of obstructions to ensure safe and unobstructed escape routes.
5. Flammable materials are properly stored in explosion-proof cabinets equipped with ventilation systems and safety warning signs to minimize the risk of fire or explosion. | |

69 -

| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| | | | Facility safety management:
1. The EHS Department is responsible for reporting and managing the toxic chemicals used in the manufacturing process. The toxic chemicals are stored in a locked storage cabinet, and the safe use of the toxic chemicals is monitored, where application to use and reporting are required in accordance with the regulations. The reported use of toxic chemicals and their amounts in 2025 are as follows:
17.37 kilograms of Acetonitrile
0.19 kilograms of Formamide
2. Regular maintenance and inspection of equipment used for the manufacturing process and R&D are performed according to their importance, and detailed operation manuals are provided to ensure safety.
3. The internal audit unit conducts annual audits to ensure that the management of equipment and the environment comply with laws and regulations as well as the Company’s internal management measures. To provide employees with a healthy and safe working environment, the Company commissioned external environmental monitoring and inspections four times in 2025. The inspection dates for the Zhongli Qingpu Plant were June 9, 2025, and December 8, 2025. The inspection dates for the Taipei Headquarters were June 16, 2025, and December 11, 2025. The monitoring results were favorable, and no major deficiencies or abnormalities occurred.

Measures for Responding to Psychosocial Hazards such as Workplace Unlawful Infringement, Bullying, or Sexual Harassment:
1. Establishment of Relevant Prevention Policies:
Formulate prevention policies for workplace unlawful infringement, workplace bullying, and sexual harassment. The Company has established operating procedures such as the "Human Rights Policy," "Work Rules," and "Measures for Preventing, Complaining, and Disciplining Sexual Harassment in the Workplace," which clearly define prohibited behaviors and handling principles.
2. Grievance and Reporting Mechanisms:
The Company has established "Whistleblowing Measures" and created accessible and confidential grievance and reporting channels (detailed information can be found on the Company's official website under the Stakeholders Section - Grievance and Whistleblowing Channels) to ensure employees can report related incidents with peace of mind.
3. Investigation and Handling Procedures:
Establish fair and objective investigation and handling mechanisms to dispose of behaviors that violate regulations in accordance with the law and the Company's systems.
4. Education, Training, and Promotion:
Regularly conduct relevant education, training, and promotional activities to enhance employees' awareness of workplace respect and prevention. | |

70 -

| Evaluation Item | Implementation Status | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | |
| (4) Does the company provide its employees with career development and training sessions | ✓ | 5. Protection and Counseling Measures:
Provide necessary protection and assistance to victims or reporting personnel, such as work adjustments and the provision of professional medical teams for on-site medical services and psychological counseling.
6. Continuous Review and Improvement:
Regularly review the implementation of relevant systems and measures to continuously strengthen workplace safety and a friendly environment.
In 2025, no incidents of workplace unlawful infringement, bullying, or sexual harassment occurred within the Company.

Company verification status:
The Company's products and manufacturing process are certified with ISO9001 certification.

The number of fires, the number of deaths and injuries, and the ratio of deaths and injuries to the total number of employees for the fiscal year, and the related improvement measures in response to fires: None.

(4) To enhance employees’ career competencies, the company has established the following training and development programs:
1. The company has implemented the “Education and Training Management Procedure,” aiming to actively cultivate talent and promote continuous learning. Each year, the Human Resources Department organizes the planning of the annual training program to enhance employees’ career competencies. Every month, the company invites both internal and external instructors to offer a variety of courses, providing employees with opportunities for personal growth.
2. The company's learning system consists of three major categories: onboard training for new employees, professional training, and leader management training. These programs are designed to support employees' continuous development and self-fulfillment while exhibiting the core values at different stages of their careers. In 2025, the average training hours per employee was 5.8 hours. | | | |
| | Employee Training Programs | | Explanation | Quantitative Outcomes | |
| | Onboarding training for new employees
Scopes: New employees | | Onboarding and training programs are provided for new employees to help them quickly understand the company’s development history and organizational regulations. The function-based professional training is arranged by the departments to help new employees get familiar with their job contents and facilitate their integration | 10 new employees in 2025
21 hours of onboarding training
100 % participation rate | |

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| Evaluation Item | Implementation Status | | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | | |
| | | | into the new work environment and corporate culture. Additionally, training sessions in different fields are arranged as needed to promote mutual learning and foster positive interaction. | | |
| | | Professional career training
Scopes: All employees | • On-the-Job Training: The company encourages all employees to participate in diverse learning programs, including topics like regulatory compliance concepts, ethics and integrity, quality management, and financial analysis. These programs are aimed at fostering continuous self-improvement and enhancing work performance and quality.
• Function-Based Professional Training: We assess each employee's competency needs, professional level, and regulatory requirements, and support them in enhancing their professional knowledge and technical skills, thereby strengthening the foundation for their career development. | In 2025, the company organized a variety of internal training programs, covering topics such as biotechnology, quality management, accounting and finance, regulatory compliance, sustainable development, and occupational health and safety. These courses provided employees with continuous learning opportunities and channels to strengthen their professional skills. A total of 27 internal training sessions were conducted, with 321 total participants and 425.5 total training hours. The passing rate for post-training assessments was 100%.

Based on employees’ job requirements and legal obligations (e.g., occupational safety, accounting supervisors, internal auditors), the company also arranged external training programs to enhance employees' professional competencies and establish foundations for better career development. A total of 12 external training courses were provided, with 12 employees participating in external courses, totaling 99 training hours.
A 100% participation rate is recorded among professional personnel. | |
| | | Leader management training
Scopes: Department Managers | The company implements a succession plan for key management positions, actively nurturing potential leaders and enhancing teamwork and practical leadership skills among management-level employees. | 1 hour of leadership training per week | |
| | | | | | |

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| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| (5) Do the company's products and services comply with relevant laws and international standards in relation to customer health and safety, customer privacy, and marketing and labeling of products and services, and are relevant consumer protection and grievance procedure policies implemented? | ☑ | (5) All marketing and labeling of our products and services comply with the relevant laws and regulations of Taiwan and the countries where our products are sold. In 2025, the company recorded no violations related to product and service information, labeling, marketing, or health and safety regulations.

Explanation of customer rights protection policy and channels of filing complaint:
The Company has established a customer service management policy. To maintain customer relationships and communication, dedicated sales personnel are assigned to different regions, including the Americas, Europe, and Asia. Management is conducted through regular and ad hoc interactions via email or telephone, meetings, visits, weekly sales meetings, and monthly performance review meetings, establishing sound cooperative relationships with both distributors and direct-sales customers. Furthermore, the Company has established a Customer Service Department and a Technical Support Department, with dedicated personnel assisting customers in resolving issues promptly and providing professional consulting services. The Company has also formulated the "Operating Procedures for Handling Customer Complaints," where cases are filed for processing within one day of receiving a complaint. If a complaint is related to product quality, given the wide variety of the Company's products, different internal testing procedures have been established for various product categories. The processing time ranges from 7 to 10 working days depending on the product type, and internal testing is used to identify the root cause, respond appropriately to customer needs, and safeguard customer rights and interests. In 2025, the on-time response rate for the Company’s customer complaint analysis reports reached 100%, and the causes and categories of complaints are analyzed and reviewed monthly to understand customer needs and improve products and services. The Company conducts annual satisfaction surveys for both direct sales and distribution customers. In 2025, the satisfaction rate for products and services was 86%, while website satisfaction reached 96%, demonstrating our commitment to valuing customer feedback and needs, prioritizing the exceeding of customer expectations, and further enhancing customer trust and loyalty.

The Company implements control over the product value chain, from raw materials and transportation logistics to the customer end, by establishing rigorous management mechanisms. We continuously track product safety information and maintain a robust reporting mechanism. Regarding the Company's customer communication and complaint contact information: The Stakeholders Section on the Company's website provides a grievance channel where customers can communicate, provide feedback, and report incidents at any time. This section also provides a detailed explanation of the grievance procedures to protect consumer rights and fulfill our commitment to product service quality and safety.

Explanation of Personal Data Protection Policy:
The company place great importance on protecting the privacy rights of all stakeholders. In accordance with the Personal Data Protection Act, we have established the “Personal Data Protection Management Regulations” and formed a Personal Data Protection Management Committee to supervise and implement relevant measures. These measures ensure compliance in managing, maintaining, and handling personal data. This policy applies to all operating sites and | | |

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| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| | | | subsidiaries of the company. The scope of personal data subjects includes customers, suppliers, employees, shareholders, and other stakeholders.

The Company has established a "Personal Data Protection Management Committee," which holds regular annual management meetings responsible for executing and supervising the implementation of personal data protection, as well as providing necessary consultation and support actions. Each department conducts a personal data inventory once a year to ensure the proper management of personal data protection.

To ensure that the collection, processing, and utilization of personal data complies with relevant laws and regulations, and to protect the privacy rights of employees, customers, suppliers, and all stakeholders, the Personal Data Protection Policy is formulated as follows:

1. Establishment of a Personal Data Management System:
The Company has established a comprehensive personal data management mechanism, including data classification and grading management, access control, data access logs, data retention and destruction mechanisms, and security measures for data storage to reduce the risks of personal data leakage, tampering, or improper use.

2. Risk Assessment and Prevention Mechanisms:
Regularly review personal data processing procedures, establish risk assessment and prevention mechanisms, and adopt appropriate management and technical protection measures based on the level of risk to ensure the security of personal data.

3. Personal Data Inventory and Management:
Led by the Legal Affairs Office, an inventory and inspection of personal data across all departments are conducted annually to confirm the purpose of data collection, data types, retention periods, and usage status, ensuring compliance with laws, regulations, and Company policies.

4. Education, Training, and Promotion:
Conduct at least one personal data protection training course annually, along with ad hoc awareness promotion activities, to enhance employees' cognition and compliance awareness of personal data protection and strengthen the regularity of daily operations.

5. Internal Audit and Continuous Improvement:
The Internal Audit Office regularly performs internal audits of personal data protection management operations to review the system design and implementation status, providing improvement recommendations based on audit results to ensure the continued effectiveness of the system and its execution.

6. Personal Data Incident Notification and Handling Mechanisms:
Establish notification and contingency handling procedures for personal data security incidents. In the event of a personal data leak or suspected incident, immediate notification shall be made, and necessary remedial and preventive measures shall be taken to mitigate potential impacts. | |

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Quantitative and management indicators of personal data protection policies in 2025:
• Employee Training in Personal Data Protection:
Course Name: Analysis of the Personal Data Protection Act (1.5 hours)
In 2025, the total education and training hours reached 106.5 man-hours. The number of personnel who completed the training was 71, accounting for 79% of the total workforce.
100% passing rate of post-training assessments
• Incident response and risk management:
No reported cases of complaints and incidents related to the Personal Data Protection Act in 2025.

(6) The Company has established "Supplier Management Procedures" and "Procurement Management Procedures" to carefully select qualified suppliers. Suppliers are required to put emphasis on environmental protection, OSH, labor rights, etc., and carefully evaluated for professionalism, integrity, and have any record of environmental and social impact, promoting ethical business practices.
In FY 2025, all suppliers of the Company 100% met the supplier selection criteria. Suppliers are required to have ISO or other certifications based on the types of business and comply with the Supplier Code of Conduct or contractual provisions as follows:
(1) Supplier implementation strategy
◆ The Company emphasizes the cooperation with suppliers. The Company understands suppliers' awareness of social responsibility and implementation results through interviews, questionnaires, education and training, etc., as needed.
◆ Considering the legal requirements, industrial characteristics, geographical environment, operating conditions, employee structure and organizational size of the supplier's location, encouraging joint efforts to practice social responsibility.
◆ When the Company signs contracts with major suppliers, the contract includes provisions for compliance with the CSR policies of both parties. If a supplier violates the policy and significantly impacts the environment and society of the supply source, they must propose an improvement plan. If the violation cannot be rectified or is serious, the Company may propose termination or rescission clauses in the contract.
(2) The Company shall consider the following labor issues when selecting vendors:
◆ Child labor is prohibited.
◆ Forced labor is prohibited.
◆ Hours of work and wages should comply with local legal norms. | |

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| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| | | | ◆ Discrimination in any form is prohibited.
◆ Healthy and safe working environment.
(3) Worker health and safety
Suppliers shall undertake to comply with local labor safety and health regulations and agree to comply with the relevant supplier management procedures formulated by the Company.
(4) Environmental protection
◆ The Company should evaluate the impact of procurement activities on the environment and social of the supply source community and urge suppliers to practice CSR.
◆ Suppliers should strive to conserve energy and water.
◆ Encourage suppliers to adopt energy-saving measures in production, packaging, transportation, etc., or use environmentally friendly recycled materials.
◆ Suppliers should be committed to reducing pollutants, toxins, and waste. Waste should be treated in accordance with relevant regulations to minimize the impact on the natural environment.
(5) Ethical and integrity in business practices
◆ When selecting suppliers, their ethical requirements, including but not limited to integrity, fair dealing, transparency in information, avoidance of undue or improper gains, and compliance with intellectual property rights regulations should be considered.
◆ When signing contracts with suppliers, both parties shall conduct transactions based on the principle of ethical business practices. In the event that one party is engaged in unethical behavior resulting in a serious violation that renders the contract incapable of performance, the other party may terminate or rescind the contract at any time.
(6) Information and Communication Security or Privacy Protection
◆ Establishment of ISMS: Suppliers are required to establish information security management systems to ensure the confidentiality, integrity, and availability of information systems, equipment, and data.
◆ Compliance with Data Protection Laws: Suppliers are required to comply with relevant personal data protection laws and regulations and establish management mechanisms for the collection, processing, utilization, and retention of personal data.
◆ Confidentiality Agreements: Confidentiality agreements are signed with key suppliers, requiring them to adopt appropriate technical and management measures to protect data security and ensure that relevant personnel are bound by confidentiality obligations.
◆ Incident Notification and Response: Suppliers are required to immediately notify the Company and take necessary contingency and remedial measures in the event of information security breach or personal data leak.
◆ Legal Compliance and Training: Suppliers shall comply with relevant laws, regulations, and norms for information security and personal data protection, and regularly conduct information security or privacy protection training for relevant personnel to enhance security awareness. | |

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| Evaluation Item | Implementation Status | | | Deviations from
“the Corporate
Social Responsibility
Best-Practice
Principles for
TWSE/TPEx Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Explanation | |
| | | | The Company conducts important supplier evaluations biannually. The supplier evaluation results for FY 2025 are as follows:
• A total of 90 raw material/product suppliers were evaluated, all of them performed well, and no suppliers failed or listed as pending observation.
• A total of 2 primary and secondary raw material suppliers for medical device products were evaluated, all of them performed well, and no suppliers failed or required observation.
• A total of 7 suppliers for fixed assets were evaluated, all of them performed well, and no suppliers failed or required observation.
• A total of 7 suppliers for facility engineering were evaluated, all of them performed well, and no suppliers failed or required observation.
• A total of 3 outsourcing suppliers were evaluated, all of them performed well, and no suppliers failed or required observation.
• A total of 46 service suppliers were evaluated, all of them performed well, and no suppliers failed or required observation.
The Company audits the operation of supplier management annually to ensure the selection and management of suppliers are in compliance with regulations. The Procurement Department communicates with suppliers through different types of channels and provides suppliers with appropriate education and quality control training as needed, ensuring the quality and service provided meet the Company's requirements and on-time delivery. This ensures compliance with various laws and regulations, including human rights, environmental health and safety, information security, and personal data protection, thereby achieving a win-win cooperative relationship between supply and demand. | |
| 5. Does the company reference internationally accepted reporting standards or guidelines, and prepare reports that disclose non-financial information of the company, such as corporate social responsibility reports? Do the reports above obtain assurance from a third-party verification unit? | ☑ | | The consolidated company has prepared its first Sustainability Report for 2023, based on the Global Reporting Initiative (GRI) Standards, including the Universal Standards, Sector Standards, and Material Topics Standards. The "2024 Annual Sustainability Report" discloses the identified material topics and impacts related to the company's economy, environment, and people (including human rights), as well as the disclosed items and reporting requirements. In accordance with regulations, the Sustainability Report and the link to the report file were placed on the Company's website and filed with the Market Observation Post System (MOPS) before August 31, 2025.
The Sustainability Report has not yet been subjected to third-party assurance or verification. | No major deviation |
| 6. Describe the difference, if any, between actual practice and the corporate social responsibility principles, if the company has implemented such principles based on the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies:
The Company has established the “Sustainable Management Best Practice Principles”, and all operations are carried out in accordance with the principles and relevant regulations. No major deviation reported. | | | | |
| 7. Other useful information for explaining the status of corporate social responsibility practices:
The Company's products and manufacturing process are certified with ISO9001 certification. In addition, permits/ licenses from agencies like Food and Drug Administration (FDA) of different countries will be applied in accordance with the specific requirements of each product.
Abnova continues to make steady progress on the path of sustainable development, with its rankings in the Corporate Governance Evaluation consistently improving. In 2024, the Company also received the "Fast Mover Badge" from the EcoVadis Supplier Sustainability Rating platform. These achievements demonstrate Abnova's dedication to implementing sustainability and the recognition it has received from external parties. Through our steadfast commitment to sustainability, we aspire to gain the endorsement and trust of our stakeholders. | | | | |

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2.3.6 Climate-Related Information of TWSE/TPEx Listed Company

Implementation of Climate-Related Information

Item	Implementation Status
1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.	The Board of Directors serves as the highest decision-making body for sustainability-related matters, and it also holds the highest supervision unit on climate-related risk management. As climate change has become a globally shared concern, the company actively addresses the uncertainties brought by extreme weather and rapid market changes, stays informed and assesses the potential impacts of climate change. Moreover, the company continuously assesses the risks posed by heavy rainfall, typhoons, heatwaves, and droughts across all operational sites. By closely observing external environmental changes, policy trends, and market dynamics, the company is able to take a more comprehensive approach to developing its overall business strategy. In alignment with the vision and mission of the company's sustainability policy, the Board regularly evaluates climate-related risks and opportunities, response strategies, and related promotion plans. It is also responsible for reviewing the annual risk management report and internal audit report to ensure the effective implementation of climate risk management systems. The Company has established a functional committee, the Sustainability Development Committee, which is composed of three independent directors. The committee assists the Board of Directors in supervising sustainable development issues and meets at least once a year. In 2025, one meeting was held in total. The company has also established a "Sustainability Task Force" led by the Chairman, who serves as the highest-level responsible person. The task force comprises senior executives from various fields, working together to assess the company's core operational capabilities and to formulate sustainability development plans. The Sustainability Task Force functions as a cross-departmental communication platform that facilitates both top-down and horizontal coordination. It is divided into five functional subgroups based on key sustainability topics: the environmental sustainability group, the social responsibility group, the corporate governance group, the risk management group, and the information security group. These groups are responsible for identifying sustainability issues relevant to the company's operations and of concern to stakeholders. They develop response strategies and working guidelines, evaluate the required resources across different units, plan and implement related actions, and continuously monitor outcomes to ensure that sustainability strategies are effectively integrated into daily operations. The Environmental Sustainability Group is responsible for implementing climate-related management projects. In addition to closely monitoring regulatory trends related to climate change, the group also collects and verifies relevant climate information to ensure compliance. Based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, the company has established a PDCA (Plan-Do-Check-Act) management cycle for promoting goals such as greenhouse gas reductions, water conservation, and waste reduction, as well as recording and analyzing information. Since 2022, the Board of Directors has reviewed the implementation of GHG inventories and verifications on a quarterly basis to confirm progress. In 2025, a total of four reports on the implementation of GHG inventory and verification were submitted to the Board as a progress update. The Sustainability Task Force also reports to the Board at least once a year. On August 13, 2025, a report was submitted outlining the company's sustainability initiatives and implementation status, including assessments of climate-related risks and opportunities, the formulation of management policies, and the performance of energy-saving and carbon reduction targets. The Board remains committed to managing climate-related risks and opportunities, upholding the company's responsibilities in environmental, social, and corporate governance while striving for long-term business sustainability.
2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).	The company classifies climate-related risks into two categories: 1. Transition Risks, associated with the shift toward a low-carbon economy, and 2. Physical Risks, related to the direct impacts of climate change. In addition, climate-related opportunities are listed. The Sustainability Task Force assesses and discloses climate impacts that are most directly related to business activities, along with corresponding response measures, in order to identify potential risks and opportunities. Through the company's standard "Integrated Risk Assessment Form", the three most critical transition risks and two key physical risks have been distinguished. Likewise, through the "Integrated Opportunity Assessment Form", the two most significant climate-related opportunities have been identified.
3. Describe the financial impact of extreme weather events and transformative actions.	The following is a consolidated explanation of how these identified climate risks and opportunities may impact the company's business operations, strategies, and finances. The effects of extreme weather events and transition actions on finance are also identified. The company defines its time horizons as follows: Short-term: 1 to 3 years; Mid-term: 3 to 5 years; Long-term: 5 to 10 years.

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Implementation Status
Risk Category	Risk Aspect	Risk Content	Time of Influence	The Impact of Risks on the Company's Strategy, Operations, and Finance	Response Strategy and Measures	Financial Impact of Response Measures	Outcome and Performance
Transition Risks	Policies and regulations	Strengthens the obligations of emission reporting	Short to mid-term (1~5 years)	In line with the government's "Sustainable Development Roadmap" and its related action plans, listed companies are required to conduct phased greenhouse gas inventories and verifications and align with the IFRS Sustainability Disclosure Standards. As a result, the company has placed greater emphasis on climate change issues and has invested additional resources and control mechanisms, leading to increased expenditure on relevant consulting, verification, and audit services.	The company is fully committed to complying with government policies and regulatory requirements, ensuring the provision of accurate and balanced information to stakeholders, and fulfilling its disclosure obligations. In the short- and mid-term, the company will carry out GHG inventories and assurance processes in accordance with the timeline set by the "Sustainable Development Roadmap." In the long term, the company will assess the feasibility of pursuing environmental certifications based on operational needs.	The financial impact includes a sum of NT$800,000 as consulting fees. Annual GHG verification and sustainability disclosure audit fees amounting to several hundred thousand NT dollars.	•Ensures compliance with legal and regulatory requirements and fulfills corporate social responsibility. •Meets stakeholders' demand for more detailed information on company operations and provides deeper insights into the company's ongoing sustainability performance.
	Market	Uncertainties of market information	Long term (5~10 years)	Electricity is the most heavily used energy source in the company's operations. As the government actively responds to international environmental and energy-saving goals, and amid frequent power shortages during summer in recent years, future electricity pricing policies may be adjusted based on consumption levels, potentially increasing operational costs. In 2025, the company's electricity consumption totaled 1,698,180 kWh. Any increase in electricity fees would lead to a corresponding rise in electricity expenses.	• Short-term goal: Strengthen implementation of energy-saving policies to reduce electricity costs. • Mid- to long-term goal: Continue replacing outdated, energy-intensive equipment with products certified with low-carbon or energy-saving labels	In 2025, the company invested approximately NT$190,000 in replacing high-energy-consuming equipment.	• In 2025, the company's electricity consumption was 1,698,180 kWh, representing a reduction of 61,611 kWh compared to 2024 (1,759,791 kWh). • The company had set the 2025 target to reduce electricity use by at least 1% compared to the previous year and achieved a 3.5% reduction.
	Reputation	Rising stakeholder concern and awareness of sustainability issues	Mid-term (3~5 years)	As stakeholder awareness and concern for sustainability issues continue to grow, companies that fail to meet these expectations may face negative public opinion, potentially impacting corporate image and social perception.	Short-term: Prepare and publish sustainability reports to disclose information on sustainability issues. Mid- to long-term: Through enhancing multiple communication channels, such as the company website, Market Observation Post System (MOPS), sustainability reports, shareholders meeting reports, and financial reports, the company can provide stakeholders with a comprehensive understanding of the company's commitment to sustainability and concrete operations. From inside to outside, these efforts aim to build a corporate culture rooted in sustainable operations and eco-friendly environments.	The promotion and management of sustainability initiatives result in increased operational costs, estimated at several hundred thousand NT dollars per year.	Abnova continues to make steady progress on the path of sustainable development. In 2024, the Company was honored with the "Fast Mover Badge" from the EcoVadis Supplier Sustainability Rating platform. This distinction reflects Abnova's dedication to implementing sustainability and the recognition it has received from international evaluation institutions. These achievements demonstrate Abnova's ongoing efforts and external recognition regarding its progress toward the SDGs. By upholding its sustainability commitments, the company strives to earn stakeholder trust and approval.

Implementation Status
Tangible risks	Immediacy	The increasing severity of extreme weather events such as typhoons and floods	Short term (1~3 years)	The increasing severity of typhoons and floods due to extreme climate change may lead to work stoppages; while flooding and transportation disruptions may prevent timely product delivery. These events can result in operational interruptions, employee livelihood impacts, and asset damage. Recovery costs and delays in product delivery would in turn increase management costs and reduce sales. A single day of business suspension is estimated to result in a revenue loss of approximately NT$1.46 million.	Abnova has established a typhoon emergency response protocol and strengthened resource integration and management. Through measures such as a safety stock policy for raw materials and catalog products, remote monitoring systems, equipment abnormality alert mechanisms, and digitized operations, the company is able to address potential impacts and minimize damages. Abnova has established a typhoon emergency response protocol and strengthened resource integration and management. Through measures such as a safety stock policy for raw materials and catalog products, remote monitoring systems, equipment abnormality alert mechanisms, and digitized operations, the company is able to address potential impacts and minimize damages.	The annual cost of monitoring system maintenance, emergency power equipment upkeep, and emergency response team inspections cost a total of approximately NT$110,000 per year
	Long term	Changes in rainfall patterns and extreme variations in climate patterns	Long term (5~10 years)	1. Heavy rainfall and prolonged high temperatures resulting from extreme weather conditions may negatively affect employee health and reduce work efficiency. 2. If climate anomalies cause water shortages or power outages that disrupt operations, a single day of business interruption could result in a revenue loss of approximately NT$1.46 million.	1. The company provides one free annual health check-up for all employees and conducts monthly on-site occupational health services delivered by professional healthcare teams to offer health guidance and support the physical and mental well-being of employees. 2. The company uses energy-efficient and power-saving equipment, as well as water storage systems, and continuously monitors electricity conditions to maintain a stable power supply.	Annual expenses for employee health check-ups and on-site occupational health services are approximately NT$93,000. Annual expenses for equipment monitoring and power supply equipment are approximately NT$110,000.

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Item	Implementation Status
	Risk Category	Opportunity Content	Time of Influence	The Impact of Opportunities on the Company's Strategy, Operations, and Finance	Response Strategy and Measures	Financial Impact of Response Measures	Outcome and Performance
	Resource efficiency	Recycle and reuse	Short term (1–3 years)	By reusing usable resources or waste materials, the company aims to avoid resource waste, reduce the volume of waste generated, improve resource utilization efficiency, and lower waste treatment costs.	Short-term: Strengthen recycling recyclable waste and water to increase reuse opportunities.
Mid- to long-term: Implement process and packaging improvements to avoid excessive use of packaging materials and reduce manufacturing waste.	In 2025, waste disposal costs were reduced by approximately NT$79,000 compared to the previous year.	The Company implements a circular use mechanism by collecting and reusing cold packs during the cold chain transportation process, saving approximately NT$30,000 in procurement costs for cooling materials annually. Furthermore, packaging materials such as expanded polystyrene (EPS) boxes, cardboard boxes, and bubble wraps that are intact and uncontaminated are also reused to reduce the generation of single-use packaging waste, resulting in annual savings of approximately NT$24,000. These efforts demonstrate the implementation of resource recycling and minimize the Company's environmental footprint.
	Products and Services	Develop and expand low-carbon products and services	Mid-term (3–5 years)	In response to the global trend toward a low-carbon transition, developing or enhancing the low-carbon value of products and services helps reduce operational costs and improve corporate reputation.	The company uses recycled materials for product packaging and provides low-carbon services (e.g., offering digital product catalogs and brochures in place of printed direct mail and utilizing electronic shareholder services to replace paper-based dividend notifications.) These efforts align with future market trends and meet stakeholder expectations, contributing to a more positive brand image and greater stakeholder recognition.	By offering electronic catalogs and product introductions instead of printed direct mail, and by sending electronic dividend notifications instead of traditional mail, the company reduces both paper usage and postage expenses—saving approximately NT$100,000 per year.	Through low-carbon services, the Company has effectively reduced paper waste and the energy consumption required for delivery, thereby mitigating environmental impact. In 2025, the quantity of paper used decreased by 15%, and the total expenditure decreased by 24%.
	The company conducts financial impact assessments for transition risks, physical risks, and opportunities as a reference for developing strategies to mitigate risks and enhance opportunities. The financial impact of transition risks primarily arises from increased operational costs associated with advancing sustainability initiatives and implementing control measures. The estimated impact is approximately 0.5% of total revenue.
The financial impact of physical risks mainly stems from preventing extreme weather, which includes investment in infrastructure maintenance and employee health and well-being benefits aimed at strengthening the company's climate resilience, such as flood prevention. The estimated impact is less than 0.5% of total revenue. (As for potential reputational losses caused by climate-related events, since there is currently no globally accepted methodology for quantifying such financial impacts, the company has adopted a benchmark of 0.5% of revenue as the quantitative financial impact of this risk based on internal and external expert consultations.)

Item	Implementation Status
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	The company follows the Task Force on Climate-related Financial Disclosures (TCFD) framework and through internal cross-departmental discussions and external expert consultations, continuously identifies material climate-related risks and opportunities. It evaluates potential impacts on business operations and establishes appropriate metrics, goal management, and strategic response plans, while continuously monitoring implementation and performance to safeguard the long-term sustainable value of the company and stakeholders.

Item

Implementation Status

4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.

The company follows the Task Force on Climate-related Financial Disclosures (TCFD) framework and through internal cross-departmental discussions and external expert consultations, continuously identifies material climate-related risks and opportunities. It evaluates potential impacts on business operations and establishes appropriate metrics, goal management, and strategic response plans, while continuously monitoring implementation and performance to safeguard the long-term sustainable value of the company and stakeholders.

The company’s Board of Directors has approved the "Risk Management Policies and Procedures", aiming to establish a proactive and robust risk management system. This system adopts a balanced approach to risk and benefits and includes the identification and control of climate-related risks and opportunities associated with the execution of business strategies. The Risk Committee is responsible for reviewing the risk management framework and the overall risk profile. Each department, based on its operational scope, is required to identify and assess various types of risks, including operational, financial, legal, information security, environmental, and other relevant risks. Response strategies are then developed based on risk identification results. The company integrates and manages potential risks that may impact operations and ensures that risk-handling actions are effectively implemented in all departments. To ensure a comprehensive understanding of changing risks and enable timely adjustments to relevant management policies and measures, the company aims to achieve proactive prevention and mitigation of potential impacts. Environmental risks related to climate change are primarily identified and assessed by the Risk Management Task Force, which evaluates potential risks the company may face in response to global warming and extreme climate conditions. The team is responsible for exploring how to establish more effective disaster prevention mechanisms to reduce impacts, while also fulfilling the company’s corporate social responsibility and strengthening environmental protection efforts. Subsequent response measures, monitoring, reporting, and disclosure are jointly carried out by the Environmental Sustainability Task Force. This team reports to the Risk Management Committee at least once per year, and to the Sustainability Development Committee at least once annually on the implementation status.

The global climate crisis caused by global warming is escalating, and in order to protect the earth together and support the government’s 2050 Net Zero Roadmap, the company has appointed the Environmental Sustainability Task Force (comprising the EHS and facilities teams) to oversee environment-related management and implementation. The team actively promotes concrete actions including water conservation, carbon emissions reduction, waste reduction, eco-friendly packaging, and resource recycling. The task force also evaluates and discloses climate-related impacts most directly associated with business operations, identifies potential risks and opportunities, and ensures that critical climate risks are effectively controlled. It reports its performance to the Board of Directors at least once annually and provides quarterly updates on GHG inventory and verification progress, ensuring that climate risk management mechanisms are effectively enforced.

Climate Risk and Opportunity Assessment and Identification Process of the Company: |

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Item	Implementation Status
	Collection

In response to external trends, regulatory requirements, and internal operational developments, the Company compiles and outlines risks and opportunities relevant to its business operations. | Identification

The Sustainability Project Team and the Risk Management Committee identify key risks and opportunities that require the Company's focused attention. | Assessment

Through the application of the risk management mechanisms, the probability of occurrence and potential impact of identified risks and opportunities are evaluated to determine material issues. |
| | Response Strategies and Financial Impact

For material risks and opportunities, the Company conducts financial impact assessments and formulates corresponding response strategies. Ongoing implementation and monitoring of these strategies are carried out to ensure effective management and continuous improvement. | | |
| 5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described. | 1. Background:
Responding to climate change is a critical factor in ensuring long-term business sustainability. With the increasing frequency of extreme weather events, the likelihood and severity of associated disasters have also intensified.
To assess potential risks, the company has conducted scenario-based simulations to evaluate the possible operational and financial impacts in the event that extreme rainfall causes significant flooding and disrupts normal operations at its sites. | | |
| | 2. Scenario Assumptions:
According to the Sixth Assessment Report (AR6) by the Intergovernmental Panel on Climate Change (IPCC), the company adopts the latest AR6 global warming scenarios and climate projection data. These climate change scenarios are developed by integrating the work of multiple research communities on international climate change and are structured around the concept of Shared Socioeconomic Pathways (SSPs), which combines socioeconomic pathways with greenhouse gas radiative forcing.
The scenario descriptions are as follows: | | |
| | Explanation of greenhouse gas emissions under SSP scenarios | | |
| | Emission scenarios | Explanations | |
| | SSP5-8.5 | Very high GHG emissions: CO_{2} emissions are expected to double around 2050. | |
| SSP3-7.0 | High GHG emissions: CO_{2} emissions are projected to double around 2100. | | |
| SSP2-4.5 | Medium GHG emissions: CO_{2} emissions begin to decline around mid-century, but net-zero emissions will not be achieved before 2100. | | |
| 3. Parameters Used:
Under the four SSP emission scenarios, simulations were conducted for short-, mid-, and long-term periods based on the "Rainfall indicator - Annual maximum daily rainfall" to assess whether the company's operational sites are located in high-risk areas prone to extreme rainfall events. | | | |

Item	Implementation Status
	按照指针：你最大一次吸收量Redday 100%-8.5 0.6-8.9 0.7-8.9 0.8-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 0.9-8.9 Source: Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) (https://tccip.ncdr.nat.gov.tw/ds_05_03_chart_3.aspx)
4. Analysis Results: Based on the simulation of the four scenarios across short-, mid-, and long-term time frames, the company's operational sites - including the headquarters located in Neihu District, Taipei City, and the factory in Zhongli District, Taoyuan City - are not situated in high-risk areas with the greatest projected rainfall levels. Furthermore, based on past experiences with heavy rainfall and typhoon events, the company has never suffered any flood-related damage. Therefore, the results of the simulated scenario analysis indicate that no material financial impact is expected on the company.
6. If there is a transition plan for managing climate-related risks, describe the	The company has identified its three most critical transition risks and two key physical risks using its "Integrated Risk Assessment Form," and has also determined the two most significant opportunities through the "Integrated Opportunity Assessment Form". Based on the analysis of these identified risks and opportunities, the company is not classified as a high carbon-emission industry and is not currently subject to carbon taxes or carbon fees. However, to align with international

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Item	Implementation Status
content of the plan, and the indicators
and targets used to identify and manage physical risks and transition risks.	trends and support the transition to a low-carbon and green economy, as well as to mitigate the impacts of global warming and climate change, the company has established three core axes of sustainable development: "Promoting Low-Carbon Services", "Enhancing Resource Efficiency" and "Moving Toward Net Zero". The company has formulated a low-carbon transition plan from these strategies and aims at reducing both direct emissions from operational activities (Scope 1) and indirect emissions from energy consumption (Scope 2). The proactive carbon reduction actions in the plan include:
(1) Improving energy efficiency to minimize GHG emissions from manufacturing and operations.
(2) Gradually replacing high-energy-consuming equipment with energy-efficient alternatives.
(3) Accelerating internal GHG inventories and external verifications in accordance with the company’s GHG inventory and verification plan.
	To achieve these goals, the company actively reduces its carbon emissions by adopting the GHG Protocol as the guiding standard for GHG inventory. It conducts GHG inventories across all operational sites and manages key climate-related indicators. Moving ahead, the company will conduct annual reviews of climate risks and actions, evaluating the appropriateness of response measures. On the other hand, Abnova continues to develop new products and technology platforms to meet the market needs of disease research and treatment. By supporting innovation in basic science, drug development, and targeted therapies, the company also seeks to address health challenges arising from climate change at their root.
	Reducing greenhouse gas emissions	Response to the increasing severity of extreme weather events such as typhoons and floods
Response Strategy	Scope 1 and Scope 2 GHG emissions and related risks of the company:
■ The company is classified as a low energy-consuming enterprise, with the primary source of greenhouse gas (GHG) emissions stemming from Scope 2 purchased electricity, accounting for 96.69% of total emissions. As a response strategy, the company is gradually phasing out energy-intensive equipment and improving energy efficiency. In 2025, the total Scope 1 and Scope 2 GHG emissions amounted to 832.46 mt CO₂e per year.
■ In line with the Sustainability Action Plan for TWSE and TPEx Listed Companies, the company has established carbon reduction targets, strategies, and concrete action plans, and is carrying out GHG inventory and verification in phases.
■ To fulfill its environmental responsibility, the company is committed to supporting the "Climate Change Response Act" and contributing to the nation's 2050 net-zero emissions target.	■ The company regularly evaluates the adaptability of each business site in the face of extreme weather events and has established risk identification and alert mechanisms to enhance overall emergency response capabilities.
■ For the self-constructed Zhongli Qingpu Plant, adequate drainage systems and waterproof building designs were incorporated during construction to prevent leakage or flooding during periods of heavy rainfall.

Item	Implementation Status
	Indicator and Target	The target is to reduce greenhouse gas emissions by more than 1% each year.	■ In the event of an abnormal situation, the monitoring system immediately notifies the responsible unit, which then activates the response mechanism in accordance with the emergency procedures to minimize impact and losses.
■ Abnormal event notification rate through the alert mechanism: 100%.
■ Financial loss caused by extreme weather events: NT$0.
■ Employee injuries caused by extreme weather events: 0.
7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	The company is not categorized as a high electricity-consuming or energy-consuming enterprise. Currently, Internal Carbon Pricing (ICP) has not yet been implemented. However, the company will assess the appropriate timing for its adoption based on actual operational needs and carbon management developments. In the future, the establishment of an internal carbon pricing mechanism will follow the "Climate Change Response Act" and refer to the market-based approach adopted by the "Taiwan Carbon Solution Exchange." The goal is to define an internal carbon price that reflects the costs incurred from the negative impacts on the environment caused by greenhouse gas emissions.
Once internal carbon pricing is implemented, the company plans to internalize carbon costs into its operations and integrate them into financial decision-making processes. An internal carbon quota system will be established, setting emission limits for each unit and converting the carbon quota into costs. (e.g. if a unit exceeds its allocated quota, it will be required to pay a corresponding carbon cost.) This mechanism will assign a carbon cost to each unit of energy consumption or product produced. The associated costs will be incorporated into budgeting, investment decision-making, and procurement processes. Through this approach, the company aims to take concrete action to strengthen carbon management and move toward sustainable operations progressively.
8. If climate-related targets have been set, the activities covered, the scope of GHG emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified.	The company is not classified as a high electricity-consuming or energy-consuming enterprise. At this stage, there are no plans to use carbon offsets or Renewable Energy Certificates (RECs) to achieve climate-related goals.
9. Greenhouse gas inventory and assurance status and reduction targets, strategy, and concrete action plan.	(Please refer to the detailed explanation below)

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1-1 The greenhouse gas inventory and assurance status of the company in the past two years

1-1-1 Information on greenhouse gas inventory

Description of greenhouse gas emissions (in metric tons of $\mathrm{CO}{2}\mathrm{e}$) and emission intensity (metric tons $\mathrm{CO}{2}\mathrm{e}$/million NTD) for the past two years, along with the scope of data coverage.

In accordance with the Sustainability Development Roadmap for TWSE and TPEx Listed Companies, the GHG inventory and assurance schedule for both the individual company and the consolidated company is as follows:

The consolidated company has established its greenhouse gas inventory mechanism in accordance with the Greenhouse Gas Protocol, jointly published by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI). Beginning in 2024, the company conducts annual GHG inventories covering both the individual company and all subsidiaries included in the consolidated financial statements. This ensures a comprehensive understanding of GHG usage and emissions and serves as the basis for verifying the effectiveness of emission reduction actions.

The GHG inventory data is compiled using the Operational Control Approach, measuring the GHG emissions of the company and all subsidiaries under its consolidated financial report. As all subsidiaries included in the consolidated financial report have no physical operations or employees, they generate no greenhouse gases. Therefore, the GHG emissions of the company are equivalent to those of the consolidated company.

Scope	Year 2025		Year 2024
	CO₂ Equivalent (Mt CO₂e)	Emissions Share	CO₂ Equivalent (Mt CO₂e)	Emissions Share
Greenhouse gas emissions - Scope 1	27.52	3.31%	24.55	2.75%
Greenhouse gas emissions - Scope 2	804.94	96.69%	869.34	97.25%
Total Greenhouse gas emissions (Scope 1 & 2)	832.46	100%	893.89	100.00%

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| | Year 2025
(Mt CO₂e/Million NTD) | Year 2024
(Mt CO₂e/Million NTD) |
| --- | --- | --- |
| Greenhouse gas emission intensity | 2.37 | 2.52 |

Note 1: Direct emissions (Scope 1): Emissions that come directly from sources owned or controlled by the company.
Indirect emissions (Scope 2): Indirect GHG emissions resulting from the consumption of purchased electricity, heat, or steam.
Other indirect emissions (Scope 3): Indirect emissions generated from company activities that occur from sources owned or controlled by other companies.
Note 2: The company adopts the Greenhouse Gas Protocol (GHG Protocol) as the standard for greenhouse gas inventory.
Note 3: The calculation formula for GHG emission intensity is: Annual total GHG emissions (Scope 1 & Scope 2) / Annual revenue (Unit: Million TWD).
Operating revenue for 2025 is NT$351.30 million; Operating revenue for 2024 is NT$355.26 million.

1-1-2 Greenhouse gas assurance information:

According to the Sustainability Development Roadmap for TWSE/TPEx Listed Companies, neither the independent company nor the consolidated company is required to conduct GHG assurance practices. Therefore, this item is not applicable.

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1-2 Greenhouse gas emission reduction targets, strategies, and concrete action plans:

This section outlines the company’s greenhouse gas emission reduction baseline year and corresponding data, along with its reduction targets, strategic approach, concrete action plans, and progress.

GHG emission reduction baseline year and reduction targets:

Abnova places great importance on sustainable development and deeply understands that every action we take today will have a profound impact on the future. Driven by this mission, we are committed to fostering a culture that inspires employees to work together toward environmental friendliness, with the shared vision of building a better future. We also strive to meet stakeholder expectations through transparency in information disclosure. Under the strategic objectives of “promoting low-carbon services,” “enhancing resource efficiency,” and “moving toward net zero,” the company is dedicated to making concrete contributions to environmental and climate change issues.

To plan a GHG reduction strategy, a consolidated greenhouse gas inventory was completed in 2024, using the consolidated financial report as the boundary. The baseline year was set in 2024.

Following the operational control approach, (baseline year 2024) the Scope 1 and Scope 2 emissions for the consolidated company are 24.55 metric tons CO₂e and 869.34 metric tons CO₂e, respectively. Through the implementation of an energy management plan, the company aims to Achieve an annual 1% reduction in GHG emissions compared to the previous year and Reach a GHG reduction target of over 10% by 2030, compared to the baseline year (2024).

Greenhouse gas Reduction Strategy and concrete action plan:

According to the Energy Efficiency 2025 report by the International Energy Agency (IEA), the global energy efficiency improvement rate in 2025 was approximately 1.8%. Despite showing an upward trend compared to the previous year, overall progress still falls short of international climate targets. Proactively improving energy efficiency remains the core key to balancing energy security, cost control, and climate change mitigation. Achieving long-term sustainable development and net-zero emissions will require a multi-pronged approach through government policy incentives, technological innovation, and corporate commitment. To reach our greenhouse gas reduction goals, the Company monitors progress through the Sustainability Committee and the Sustainability Project Team. Our reduction strategies and initiatives are as follows:

Item	Strategies for reducing greenhouse gases	Explanations of concrete action
1.	Energy-saving lighting equipment	All lighting fixtures in office areas, laboratories, and public corridors are being replaced with LED energy-saving lights. Due to the improved illumination effects of the new fixtures, the total number of lights installed is also reduced, resulting in lower electricity consumption.
2.	Implementation of temperature control mechanisms	In alignment with government energy-saving initiatives, air conditioning temperatures in office and operational areas have been standardized at 26°C to prevent electricity consumption from excessive cooling.
3.	Energy-saving air conditioners and refrigeration equipment	Outdated refrigerators and air conditioners with high energy consumption are being gradually replaced with energy-saving models or upgraded with energy-saving compressors to improve overall energy efficiency.
4.	Choosing low-fuel-consumption company vehicles	The company operates one vehicle primarily for transporting items between the Taipei headquarters and the Zhongli plant, as well as for employee business use. A low-fuel-consumption model is selected to reduce fuel usage.

Carbon Reduction Strategy and Action Plan for 2030:

Abnova is actively implementing a variety of energy-saving measures to reduce greenhouse gas emissions. Through concrete actions, the company aims to achieve its carbon reduction targets by 2030.

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Item	Strategies for reducing greenhouse gases	Explanations of concrete action
1.	Continuous implementation of temperature control mechanisms	In line with government energy-saving initiatives, the temperature of air conditioners in office and work areas is uniformly set to 26°C to reduce electricity consumption caused by excessive cooling.
2.	Replacement of equipment with high energy and electricity consumption in various phases	As a low-energy-consuming enterprise, the company’s largest source of greenhouse gas emissions comes from purchased electricity (Scope 2), which accounts for 96.69% of total emissions. To improve energy efficiency, the company plans to gradually replace high energy and electricity consumption equipment with those certified with energy efficiency labels.
3.	Reinforce energy conservation habits among all employees	Promoting concepts of energy conservation and carbon reduction among employees: turning off unused electrical appliances, adhering to air-conditioning temperature controls to avoid excessive cooling, and encouraging using public transportation for commuting. These everyday habits of energy conservation and carbon reduction can help safeguard our environment and ecology.
4.	Incorporating GHG Reduction Targets into the indicators of operating performance evaluation	To ensure that both the management team and all employees are actively engaged in achieving GHG reduction goals and improving energy efficiency, key environmental objectives have been integrated into the company's operational performance evaluation indicators. Progress is reviewed regularly, and a reward system is implemented to support the consolidated company's path toward the goal of net-zero emissions.

Progress on Emission Reduction Targets

The consolidated company has set a target to reduce annual greenhouse gas emissions by 1% compared to the previous year. In 2025, greenhouse gas emissions were reduced by 6.87% compared to 2023, and in 2024, a further reduction of 6.35% was achieved compared to 2023. The company has successfully met its emission reduction goals for two consecutive years. Looking ahead, we will continue to monitor implementation progress and effectiveness, actively contributing to environmental protection and aligning with the global consensus on achieving net-zero carbon emissions by 2050.

2.3.7 Fulfillment of Ethical Corporate Management and Deviations from the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies"

Evaluation Item	Implementation Status
	Yes	No	Abstract Illustration
1. Establishment of ethical corporate management policies and programs
(1) Does the company have a Board-approved ethical corporate management policy and stated in its regulations and external correspondence the ethical corporate management policy and practices, as well as the active commitment of the Board of Directors and management towards enforcement of such policy?

(2) Does the company have mechanisms in place to assess the risk of unethical conduct, and perform regular analysis and assessment of business activities with higher risk of unethical conduct within the scope of business? Does the company implement programs to prevent unethical conduct based on the above and ensure the programs cover at least the matters described in Paragraph 2, Article 7 of the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies?

(3) Does the company provide clearly the operating procedures, code of conduct, disciplinary actions, and appeal procedures in the programs against unethical conduct? Does the company enforce the programs above effectively and perform regular reviews and amendments? | ☑ | | (1) The Company established the "Procedures for Ethical Management and Guidelines for Conduct" on March 27, 2015. In response to the amendment of regulations and operational requirements of the Company, it was revised and approved by the Board of Directors on March 29, 2017, and March 26, 2020, and was also reported in the AGMs for the year and disclosed on the MOPS and the Company website. Integrity is clearly set out in the procedures and guidelines; commitments and practices are in compliance with the regulations. The Board of Directors and management team have also actively monitored its implementation.

(2) The Company has established the "Procedures for Ethical Management and Guidelines for Conduct" for compliance, which clearly stipulates that violations such as provision or acceptance of improper benefits, provision or promise of any facilitating payment, provision of illegal political contributions, disguised form of bribery, engagement in unfair competition that may cause harm to the rights and interests of stakeholders, insider trading, etc. will be handled in accordance with "Regulations Governing Reward and Punishment".

(3) The Company has established the "Procedures for Ethical Management and Guidelines for Conduct" and "Codes of Ethical Conduct". For business activities that pose a higher risk of unethical behavior, in addition to adhering to the corporate culture of integrity, job rotation for the relevant position is adopted, and stakeholder mailbox for whistleblowing and complaints is established in order to prevent unethical behavior. The "Procedures for Ethical Management and Guidelines for Conduct" and "Codes of Ethical Conduct" are consistently reviewed and revised in accordance with the amendment of regulations and operational requirements of the Company. | None |
| 2. Fulfill operations integrity policy
(1) Does the company evaluate business partners' ethical records and include ethics-related clauses in business contracts? | ☑ | | (1) The Company has established "Supplier Management Procedures" and "Procurement Management Procedures" to carefully select partners and suppliers to avoid engaging in transactions with unethical suppliers. Clauses related to integrity shall be included in trading partner agreements, as needed, and the rights and obligations of both parties, as well as the transaction terms, shall be clearly stipulated in the contracts or relevant commercial agreements. | None |

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Evaluation Item	Implementation Status
	Yes	No	Abstract Illustration
(2) Does the company have a unit responsible for ethical corporate management on a full-time basis under the Board of Directors which reports the ethical corporate management policy and programs against unethical conduct regularly (at least once a year) to the Board of Directors while overseeing such operations?	☑		(2) In accordance with the “Procedures for Ethical Management and Guidelines for Conduct” and "Codes of Ethical Conduct”, Chairman Office is appointed as the dedicated unit to promote and implement integrity management policy, preventing various types of unethical behavior, including provision or acceptance of improper benefits, unfair competition, insider trading, etc. The integrity management policy and the plan to prevent unethical behavior and its monitoring and implementation were reported in the Board meeting on November 11, 2025.
Implementation of Integrity management execution for FY 2025:
1. The Company has established the "Procedures for Ethical Management and Guidelines for Conduct”, the relevant regulations are published on the intranet for compliance. In addition, integrity management is included in the human resource policy, preventing various types of unethical behavior, and an effective corrections system has been established. No employee dishonesty is reported in FY 2025.
2. Conducted ethical corporate management training with the course theme: "Corporate Corruption and Ethical Management." The training duration was 1.5 hours, with total training hours reaching 105 man-hours. The number of participants was 70 (man-times), accounting for 78% of the total workforce.
3. A total of 7 directors and 6 managerial personnels have signed the statement of compliance with the integrity management policy, achieving a 100% signing rate.
4. A total of 90 employees have signed the confidentiality agreement upon employment, achieving a 100% signing rate.
5. The Company has established communication channels for all stakeholders and a whistleblowing mailbox. No complaint or misconduct reporting received in FY 2025.
(3) Does the company establish policies to prevent conflicts of interest and provide appropriate communication channels, and implement them?	☑		(3) The Company has established various stakeholder mailboxes, providing internal and external channels for complaints and whistleblowing, and it is implemented accordingly. The "Procedures for Ethical Management and Guidelines for Conduct” and "Codes of Ethical Conduct” of the Company have clearly defined policy of preventing conflicts of interest, and employees and stakeholders are required to implement accordingly. Abstention from voting due to conflicts of interest is applicable to all motions in the Board meeting.
(4) Does the company have effective accounting and internal control systems in place to implement ethical corporate management? Does the internal audit unit follow the results of unethical conduct risk assessments and devise audit plans to audit the systems accordingly to prevent unethical	☑		(4) The Company has set rigorous and effective critical control points in the accounting system, internal control system, and related procedures for business activities or operating procedures that may pose higher risks. In accordance with the annual risk assessment, annual audit plans are arranged and carried out by the

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Evaluation Item	Implementation Status			Deviations from the “Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies” and Reasons
	Yes	No	Abstract Illustration
conduct, or hire outside accountants to perform the audits?			internal auditors. All units are required to conduct self-assessment, ensuring the appropriateness of the system design and actual implementation.
(5) Does the company regularly hold internal and external educational training on operational integrity?	☑		(5) In addition to regularly organizing internal advocacy training on integrity management, the Company also sends employees to participate in external seminars in order to strengthen the concept of integrity management.
3. Operation of the integrity channel
(1) Does the company establish both a reward/punishment system and an integrity hotline? Can the accused be reached by an appropriate person for follow-up?	☑		(1) The Company has established the "Procedures for Ethical Management and Guidelines for Conduct" and "Codes of Ethical Conduct", as well as whistleblowing channels for convenient and confidential reporting, which will be handled by dedicated independent personnel.	None
(2) Does the company have in place standard operating procedures for investigating accusation cases, as well as follow-up actions and relevant post-investigation confidentiality measures?	☑		(2) The Company has established a standard operating procedure for investigating reported matters and relevant confidentiality mechanisms. In FY 2025, no external and internal misconduct reporting was received, and no significant incident of unethical behavior was reported.
(3) Does the company provide proper whistleblower protection?	☑		(3) Confidentiality mechanism is adopted to handle the reported matters, ensuring the safety of the whistleblower. In FY 2025, no external and internal misconduct reporting was received, and no significant incident of unethical behavior was reported.
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?	☑		The Company has disclosed relevant information on integrity management policy and the effectiveness of its implementation on the Company website and MOPS for public access.	None
5. If the company has established 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.
The Company has established the "Procedures for Ethical Management and Guidelines for Conduct" and "Codes of Ethical Conduct", and all operations are carried out in accordance with relevant regulations. No major deviations reported.
6. Other important information to facilitate a better understanding of the company’s ethical corporate management policies (e.g., review and amend its policies).
The "Procedures for Ethical Management and Guidelines for Conduct" is consistently reviewed and revised in accordance with the operational requirements of the Company. The aforementioned regulations is consistently revised in response to the amendment of government regulation and operational requirements of the Company.
The most recent revision was made on March 26, 2020, and announced after it was reviewed by the Audit Committee and approved by the Board of Directors to ensure compliance by management and all employees. Also, the revision was reported in the AGM in 2020.

2.3.8 Other significant information that will provide a better understanding of the state of the company's implementation of corporate governance may also be disclosed: None.

2.3.9 Internal Control System

1. Statement of Internal Control System

Abnova (Taiwan) Corporation
Statement of Internal Control System

Date: February 25, 2026

Based on the findings of a self-assessment, Abnova (Taiwan) Corporation states the following with regard to its internal control system during the year 2025:

The Company is aware that the establishment, implementation and maintenance of the internal control system is the responsibility of the Board of Directors and the managers of the Company. The Company has established the system for the purpose of guaranteeing the reliability, timeliness and transparency report of the effectiveness and efficiency of the operation (including profitability, performance, asset security, etc.) and ensuring all are in compliance with relevant laws and regulations.
An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can only provide reasonable assurance of accomplishing the three aforementioned 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 the Company takes immediate remedial actions in response to any identified deficiencies.
The Company 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 activities. Each component also includes several items which can be found in the Regulations.
The Company has evaluated the design and operating effectiveness of its internal control system according to the aforesaid Regulations.
Based on the findings of such an evaluation, the Company believes that, on December 31, 2025, it maintained, in all material respects, an effective internal control system (that includes the supervision and management of our subsidiaries), to provide reasonable assurance on our operational effectiveness and efficiency, reliability, timeliness, transparency of reporting, and compliance with applicable rulings, laws and regulations.
This Statement is an integral part of the Company's annual report for the current period 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 was approved by the Board of Directors in their meeting held on February 25, 2026, with all 6 attending directors affirming the content of this Statement.

Abnova (Taiwan) Corporation
Chairman: Wilber Huang
President: Jih Pei Ju

If CPA Was Engaged to Conduct a Special Audit of Internal Control System, Provide Its Audit Report: None.
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2.3.10 Material resolutions of a shareholders meeting or a board of directors meeting during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report

Major Resolutions of Shareholders' Meeting and Implementation Status

Date	Item	Major resolution	Implementation status of resolution
2025.5.29	1.	To approve the 2024 Business Report and Financial Statements.	The 2024 Business Report and Financial Statements were approved, the consolidated revenue totaled NT$ 355,257 thousand and net profit after tax was approximately NT$ 61,607 thousand, with EPS of NT$ 1.02.
	2.	To approve the 2024 profit distribution plan.	The cash dividend of NT$ 0.9 per share was distributed. The ex-dividend date was set as June 22, 2025, and the cash dividend was distributed on July 3, 2025.
	3.	To discuss the amendments of the "Articles of Incorporation" of the Company.	The information has been announced for compliance and disclosed on the Market Observation Post System (MOPS) and the Company's website. The approval for the change of registration from the Ministry of Economic Affairs was obtained on July 1, 2025 (Letter No. Jing-Shou-Shang-Zi-11430082860).

Board Meetings:

Date	Item	Major resolution
2025.2.26	1.	To discuss the 2024 "Internal Control System Statement".
	2.	To discuss the definition and scope of the Company's frontline employees.
	3.	To discuss the amendments of the "Articles of Incorporation" of the Company.
	4.	To discuss the formulation of the "Sustainability Committee Charter" of the Company.
	5.	To discuss the appointment of members for the first "Sustainability Committee" of the Company.
	6.	To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from October 2024 to January 2025.
	7.	To discuss the independence and suitability of the CPAs.
	8.	To discuss the compensation paid to CPAs.
	9.	To discuss the allocation of compensation for employees and directors for FY 2024.
	10.	To discuss the Company's 2024 business report and financial statements.
	11.	To discuss the profit distribution for FY 2024.
	12.	To discuss and determine the details of convening the 2025 AGM such as date, venue, and the general nature of the business to be considered at the meeting, etc.
	13.	To discuss the remuneration for the chairman and managerial personnels for the year 2025.
2025.5.14	1.	To discuss the formulation of the "Tax Policy" and "Anti-Corruption, Anti-Bribery, and Anti-Money Laundering Policy."
	2.	To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from February to March 2025.
	3.	To discuss the amendments of the "Procedures for the Preparation and Verification of the Sustainability Report" of the Company
	4.	To discuss the Q1 2025 consolidated financial statements of the Company.
2025.8.13	1.	To discuss the formulation of the "Greenhouse Gas Inventory Management Measures" and "Environmental, Energy, and Climate Change Management Policy."
	2.	To discuss the amendments of the "Procedures for the Acquisition or Disposal of Assets."
	3.	To discuss the amendments of the "Internal Control Systems" of the Company
	4.	To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from April to June 2025.
	5.	To discuss the approval of the Company's 2024 Sustainability Report
	6.	To discuss the Q2 2025 consolidated financial statements of the Company.
	7.	To discuss the renewal of the short-term lines of credits of the Company.

Date	Item	Major resolution
2025.11.11	1.	To discuss the amendments of the "Risk Management Policy and Procedures" of the Company
	2.	To discuss the amendments of the "Internal Control Systems" of the Company
	3.	To discuss the "2025 Annual Audit Plan".
	4.	To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from July to September 2025.
	5.	To discuss the proposal to provide a loan facility of NT$ 5 million to the German subsidiary, Abnova GmbH.
	6.	To discuss the Q4 2025 consolidated financial statements of the Company.
	7.	To discuss the 2026 budget.
	8.	To discuss the remuneration for the directors and managerial personnels for the year 2026.
	9.	To discuss the distribution of year-end bonus for the chairman and managerial personnels for FY 2025.
2026.2.25	1.	To discuss the 2025 "Internal Control System Statement".
	2.	To discuss the changes in the financing provided to the German subsidiary, Abnova GmbH from October 2025 to January 2026.
	3.	To discuss the change of CPAs.
	4.	To discuss the independence and suitability of the CPAs.
	5.	To discuss the compensation paid to CPAs.
	6.	To discuss the definition and scope of the Company's frontline employees.
	7.	To discuss the allocation of compensation for employees and directors for FY 2025.
	8.	To discuss the Company's 2025 business report and financial statements.
	9.	To discuss the profit distribution for FY 2025.
	10.	To discuss the Re-Election of all directors
	11.	To discuss the case on the period and location for the Company to accept director nominations.
	12.	To discuss and review the nomination of candidates for the 10th session of directors and Independent Directors.
	13.	To discuss the release of the prohibition on new directors from participating in competitive business.
	14.	To discuss and determine the details of convening the 2026 AGM such as date, venue, and the general nature of the business to be considered at the meeting, etc.
	15.	To discuss the remuneration for the managerial personnels for the year 2026.

2.3.11 Where, during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, a director or supervisor has expressed a dissenting opinion with respect to a material resolution passed by the board of directors and said dissenting opinion has been recorded or prepared as a written declaration, disclose the principal content thereof: None.

97 -

2.4 Information Regarding the Certified Public Accountants' Audit Fee

2.4.1 The amounts of the audit fees and non-audit fees paid to the attesting certified public accountants and to the accounting firm to which they belong and to any affiliated enterprises as well as the details of non-audit services.

Unit: NT$ 1,000

Accounting firm	CPA	Audit Period		Audit Fee
KPMG Taiwan	Chiang Hsiao Ling	2025.01.01-2025.12.31	2,620	Tax Returns 337
Professional Services 560(Note)	3,517	None
	Wu Tsao Jen

(Note) Primarily engaged in providing consulting services for the sustainability report, with the second installment of NT$280,000 and the final payment of NT$280,000 paid in 2025.

2.4.2 When the securities firm changes its accounting firm and the audit fees paid for the financial year in which the change took place are lower than those paid for the financial year immediately preceding the change, the amount of the audit fees before and after the change and the reason shall be disclosed: None.

2.4.3 When the audit fees paid for the current financial year are lower than those paid for the immediately preceding financial year by 10 percent or more, the amount and percentage of and reason for the reduction in audit fees shall be disclosed: None.

2.5 Information on the replacement of certified public accountant:

The Company has changed its CPAs since 2026 due to an internal job adjustment of the accounting firm and was approved by the Board of Directors on February 25, 2026.

2.5.1. Regarding the former certified public accountant:

Date of Change	February 25, 2026
Reasons and Explanation of Changes	The Company originally appointed Chiang Hsiao Ling and Wu Tsao Jen from KPMG Taiwan for financial statement auditing and has changed to appoint Hsu Shu Min and Chiang Hsiao Ling from KPMG Taiwan starting from the year 2026 due to an internal job adjustment of the accounting firm.
State Whether the Appointment is Terminated or rejected by the Consignor or CPAs	Person involved Situation	CPA	Consignor
	Appointment terminated automatically	V	—
	Appointment rejected (discontinued)	—	—
The Opinions Other than Unmodified Opinion Issued in the Last Two Years and the Reasons for the Said Opinions	None
Is There Any Disagreement in Opinion with the Issuer	Yes	X	Accounting principle or practice
		X	Disclosure of financial statements
		X	Auditing scope or procedures
		X	Others
	No	V
	Explanation: None
Supplementary Disclosure (Disclosures Specified in Article 10.6.1.4~7 of the Standards)	None

2.5.2 Regarding the successor certified public accountant:

Accounting Firm	KPMG Taiwan
CPA	FY 2026: Hsu Shu Min, Chiang Hsiao Ling
Date of Engagement	February 25, 2026
Prior to the Formal Engagement, Any Inquiry or Consultation on the Accounting Treatment or Accounting Principles for Specific Transactions, and the Type of Audit Opinion that Might be Rendered on the Financial Report	None
Written Opinions from the Successor CPAs that are Different from the Former CPA’s Opinions	None

2.5.3 The reply of former CPAs on Article 10.5.1 and Article 10.5.2.3 of the Standards: Not applicable

2.7.1 Change in shareholding by directors, supervisors, managerial officers, or major shareholders

Unit: Share

Title	Name	FY 2025		Current fiscal year up to March 31, 2026
		Net Change in Shareholding	Net Change in Shares Pledged	Net Change in Shareholding	Net Change in Shares Pledged
Chairman	Wilber Huang	-	-	-	-
Directors	Harmony Investment Co., Ltd.	-	-	-	-
Institutional director Representative	Chiu Chi Ching	-	-	-	-
Directors	Pan Pacific Investment Co., Ltd.	-	-	-	-
Institutional director Representative/President	Jih Pei Ju	-	-	-	-
Directors	China Wire & Cable Co., Ltd	-	-	-	-
Institutional director Representative	Chen Yueh Hung	-	-	-	-
Independent Directors	Cha, Anna	-	-	-	-
Independent Directors	Ye Shao De	-	-	-	-
Independent Directors	Su Jin Jun	-	-	-	-
Senior Manager	Zheng Mei Hui	-	-	-	-
Senior Manager	Chen Si Xian	-	-	-	-
Senior Manager	Tung I Ling	-	-	-	-
Senior Manager	Zhou Yun Jin	-	-	-	-
Senior Manager	Chang Ya Ping	-	-	-	-
Senior Manager	Tung Kai Chiang (Note)	-	-	-	-

Note: Resigned and dismissed on July 8, 2025.

2.7.2 Stock trade with related parties by directors, supervisors, managerial officers, or major shareholders: None.

2.7.3 Stock pledge with related party: None.

2.8 Relationship information, if among the company's 10 largest shareholders anyone is a related party or a relative within the second degree of kinship of another.

March 31, 2026; Unit: Share; %

Name	Shares Held		Shares Held by Spouse & Minors		Shares Held in the Name of Others		Name and relationship for those who are the related party of or are the spouses of or are related to the top 10 shareholders within the second degree of kinship		Remark
	Shares	%	Shares	%	Shares	%	Name	Relationship
Wilber Huang	3,651,144	6.03%	-	-	-	-	1. Harmony Investment Co., Ltd.
2. Lasertech Holding International Ltd.
3. Pan Pacific Investment Co., Ltd.	1. Spouse of the representative
2. Spouse of the representative
3. Spouse of the supervisor	-
Harmony Investment Co., Ltd.
Representative: Chiu Chi Ching	2,448,294	4.04%	-	-	-	-	1. Wilber Huang
2. Lasertech Holding International Ltd.
3. Pan Pacific Investment Corp.	1. Spouse of the representative
2. The same person who is the representative
3. The representative is the same as the supervisor.	-
Lasertech Holding International Ltd.
Representative: Chiu Chi Ching	2,248,786	3.71%	-	-	-	-	1. Wilber Huang
2. Harmony Investment Co., Ltd.
3. Pan Pacific Investment Corp.	1. Spouse of the representative
2. The same person who is the representative
3. The representative is the same as the supervisor	-
Pan Pacific Investment Corp.
Representative: Wu Cong Lin	1,839,014	3.04%	-	-	-	-	1. Harmony Investment Co., Ltd.
2. Lasertech Holding International Ltd.
3. Wilber Huang
4. E.SUN Bank in custody of Lasertech Investment Fund	1. The supervisor is the same as the representative
2. The supervisor is the same as the representative
3. Spouse of the supervisor
4. Trust Account in Bank	-
China Wire & Cable Co., Ltd
Representative: Chen Liang-Yin	1,037,017	1.71%	-	-	-	-	None	None	-
Hong Hong Long	681,000	1.12%	-	-	-	-	None	None	-
Rong How Investment Co., Ltd.
Representative: Lee Huan Xin	540,000	0.89%	-	-	-	-	None	None	-
E.SUN Bank in custody of Lasertech Investment Fund	510,374	0.84%	-	-	-	-	Lasertech Holding International Ltd.	Trust account	-
Su Fu Cheng	502,000	0.83%	-	-	-	-	None	None	-
Hong Zhen Mei	450,386	0.74%	-	-	-	-	None	None	-

December 31, 2025; Unit: Share; %

| Affiliated Company
(Note) | Shareholding by the Company | | Shareholding of directors, supervisors, managers, or enterprises under their direct or indirect control | | Total Shareholding | |
| --- | --- | --- | --- | --- | --- | --- |
| | Shares | % | Shares | % | Shares | % |
| Abnova -GmbH | (Note 1) | 100% | None | | (Note 1) | 100% |
| Abnova Holding Corporation | 1,700 | 100% | None | | 1,700 | 100% |
| Abnova (Cayman) Corporation | 0 | 0% | 20,000 | 100% | 20,000 | 100% |
| AxleBio Ventures | 130,000 | 100% | None | | 130,000 | 100% |
| Citil Pharma Incorporated | 0 | 0% | 7,224,000 | 100% | 7,224,000 | 100% |

Note 1: Affiliated enterprise which is a subsidiary established in Germany, that is a limited liability company without issued shares.

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III. Capital Overview

3.1. Capital and Shares

3.1.1 Source of capital stock

Unit: 1000 shares; NT $1,000

Year/ Month	Par Value (NT$)	Authorized share capital		Paid-in capital		Remark
		Shares	Amount	Shares	Amount	Sources of capital stock	Capital increased by assets other than cash	Others
2002.01	10	3,000	30,000	1,200	12,000	Incorporation	—	Approval letter No. Government-Construction-Commercial-09013830700
2002.11	10	23,000	230,000	10,759	107,586	Capital increase by cash of NT$ 95,586 thousand	—	Approval letter No. MOEA-Business-09101451900
2003.06	12	23,000	230,000	16,697	166,974	Capital increase by cash of NT$ 59,388 thousand	—	Approval letter No. Government-Construction-Commercial-09211610410
2003.12	12	23,000	230,000	21,424	214,241	Capital increase by cash of NT$ 47,267 thousand	—	Approval letter No. Government-Construction-Commercial-09226503310
2004.03	—	21,424	214,241	21,424	214,241	Reduction of authorized share capital	—	Approval letter No. Government-Construction-Commercial-09307359410
2004.10	12	60,000	600,000	32,543	325,428	Capital increase by cash of NT$ 111,187 thousand	—	Approval letter No. Government-Construction-Commercial-09317037340
2004.12	12	60,000	600,000	38,669	386,692	Capital increase by cash of NT$ 61,264 thousand	—	Approval letter No. Government-Construction-Commercial-09326631600
2005.10	12	60,000	600,000	44,272	442,724	Capital increase by cash of NT$ 56,032 thousand	—	Approval letter No. Government-Construction-Commercial-09417987820
2006.06	12	60,000	600,000	50,795	507,946	Capital increase by cash of NT$ 65,222 thousand	—	Approval letter No. Government-Construction-Commercial-09579697300
2007.04	—	60,000	600,000	30,000	300,000	Reduction of paid-in capital	—	Approval letter No. Government-Construction-Commercial-09683490120
2007.05	20	60,000	600,000	38,240	382,399	Capital increase by cash of NT$ 82,399 thousand	—	Approval letter No. Government-Construction-Commercial-09684761500
2007.10	10	60,000	600,000	41,907	419,071	Capital increase by issuance of stock warrants of NT$ 36,672 thousand	—	Approval letter No. Government-Construction-Commercial-09690441110
2008.01	37	60,000	600,000	50,825	508,251	Capital increase by cash of NT$ 89,180 thousand	—	Approval letter No. MOEA-Business-09601321130
2008.01	10	60,000	600,000	52,899	528,989	Capital increase by issuance of stock warrants of NT$ 20,738 thousand	—	Approval letter No. MOEA-Business-09701009470
2008.07	10	80,000	800,000	54,058	540,579	Capital increase by issuance of stock warrants of NT$ 11,590 thousand	—	Approval letter No. MOEA-Business-09701160610
2008.12	10	80,000	800,000	54,158	541,579	Capital increase by issuance of stock warrants of NT$ 1,000 thousand	—	Approval letter No. MOEA-Business-09701325300
2010.01	68	80,000	800,000	59,547	595,469	Capital increase by cash of NT$ 53,890 thousand	—	Approval letter No. MOEA-Business-09901004550
2015.08	—	80,000	8 00,000	58,047	580,469	Capital reduction by reduction of treasury shares of NT$ 15,000 thousand	—	Approval letter No. MOEA-Business-10401153090
2016.09	—	80,000	800,000	58,790	587,899	Recapitalization of retained earnings of NT$ 7,430 thousand	—	Approval letter No. MOEA-Business-10501235390
2017.09	—	80,000	800,000	60,554	605,536	Recapitalization of retained earnings of NT$ 17,637 thousand	—	Approval letter No. MOEA-Business-10601130440

101 -

March 31, 2026; Unit: Share

Types of Shares	Authorized share capital			Remark
	Issued shares (Note)	Unissued Shares	Total
Common stock	60,553,594	19,446,406	80,000,000	—

Note: The shares of a listed company.

3.1.2 List of major shareholders

March 31, 2026; Unit: Share; %

Shares Major Shareholders	Shareholding	Shareholding Percentage
Wilber Huang	3,651,144	6.03%
Harmony Investment Co., Ltd.	2,448,294	4.04%
Lasertech Holding International Ltd.	2,248,786	3.71%
Pan Pacific Investment Corp.	1,839,014	3.04%
China Wire & Cable Co., Ltd	1,037,017	1.71%
Hong Hong Long	681,000	1.12%
Rong How Investment Co., Ltd.	540,000	0.89%
E.SUN Bank in custody of Lasertech Investment Fund	510,374	0.84%
Su Fu Cheng	502,000	0.83%
Hong Zhen Mei	450,386	0.74%

3.1.3 Company's dividend policy and its state of implementation

The dividend policy of the Company is based on the provisions of the Company's Articles of Incorporation, and the relevant provisions are as follows:

Article 24:

If the company makes a profit in the year (the so-called profit means after deducting the profit before the distribution of employee compensation and directors' compensation from the annual pre-tax profit), no less than $1\%$ shall be allocated for employee compensation (among which a portion no less than $0.5\%$ of the said profit shall be distributed to non-executive employees) and no more than $3\%$ for directors' compensation. However, if the company still has accumulated losses (including adjusting the amount of undistributed earnings), the amount of compensation shall be retained in advance.

The employees' compensation in the preceding paragraphs shall be distributed in the form of shares or cash; The distribution objects may include employees of affiliated companies who meet the conditions prescribed by the board of directors. The compensation of the directors referred to in the preceding paragraph may only be paid in cash.

The preceding two paragraphs shall be implemented by the resolution of the board of directors and shall be submitted to the shareholders' meeting.

Definition and Scope of the Non-executive Employees of the Company: The non-executive employees refer to entry-level employees not covered under the "managerial officer" defined by the FSC, who are compensated at the salary level lower than that defined in the "Regulations for Tax Preferences Provided to Small and Medium Enterprise on Wage Payment Raising".

Article 24-1:

If the Company has net profit after tax for the current period, it shall first be deducted to cover accumulated losses (including adjustment to undistributed earnings), set aside $10\%$ of such profits as a legal reserve as required by law. However, when the legal reserve amounts to the authorized capital, this shall not apply. Then, appropriate another sum as a special reserve as required by law or regulations of the competent authority. If there is any remaining balance, together with the undistributed earnings at the beginning of the period (including adjustments

to undistributed earnings), a proposal of surplus earning distribution shall be submitted to the Board of Directors for approval. For the distribution of dividends and bonuses in the form of cash, it shall be decided by a resolution to be adopted by a majority voting of directors present at a meeting of its Board of Directors attended by two-thirds of the directors of the Company, and the decision shall be reported to the shareholders' meeting. If the surplus earnings are distributed in the form of new shares, it shall be approved by the resolution of the shareholders' meeting.

The Article 240, paragraph 5 of the Articles of Incorporation of the Company authorizes the distributable dividends and bonuses in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting.

The dividend policy of the Company in line with current and future development plans, taking account of factors such as investment environment, funding needs, competition at home and abroad, shareholders' interests, etc. The Company will set aside not less than 10% of the distributable earnings as dividends and bonuses every year. However, the Company will not make distribution if the accumulated distributable earnings are less than 3% of the paid-in capital. Dividends and bonuses can be distributed in the form of cash or shares, in which the cash dividend shall not be less than 10% of the total dividends.

The dividend distribution proposed in the most recent shareholders' meeting:

(1) The accumulated unappropriated retained earnings are NT$ 65,760,459, deducted the net loss after tax in 2025 is NT$ 1,141,279, and added NT$ 223,096 earnings due to remeasurements of the net defined benefit plan and reversal of NT$2,511,476 special reserve, the distributable net profit is NT$ 67,353,752. The proposed dividend to shareholders is NT$ 6,782,003, with NT$0.112 per share is proposed.

(2) The proposed cash dividend will be calculated based on the shareholding as recorded in the shareholders' roster on the ex-dividend date and will be rounded down to the nearest whole dollar. The Chairman is authorized to appoint designated person to adjust the total amount of the fractional amounts less than NT$ 1.

(3) Upon approval by the Annual General Meeting of Shareholders, the Chairman of the Board is authorized to determine the ex-dividend record date and other relevant matters.

Abnova (Taiwan) Corporation 2025 Profit Distribution Statement
Unit: NT$

Item	Amount
Beginning retained earnings		65,760,459
deduct: 2025 net loss after tax	(1,141,279)
Add: Remeasurements of the net defined benefit plan recognized in retained earnings (Note1)	223,096
Net loss after tax of the current period plus the amount of items other than net loss after tax of the current period included in the unappropriated retained earnings of the current year		(918,183)
Add: Reversal of special reserve - Deduction from Other Equity		2,511,476
Distributable net profit		67,353,752
Distributable items
Dividend to shareholders- Cash (NTD 0.112/share)	(6,782,003)
Unappropriated retained earnings		60,571,749

Note 1: Other comprehensive profits and losses are recognized according to the pension actuarial report.

3.1.4 Effect upon business performance and earnings per share of any stock dividend distribution proposed or adopted at the most recent shareholders' meeting: No stock dividend is distributed for the current FY.

3.1.5 Profit-sharing compensation of employees and directors

The percentages or ranges with respect to employee and director profit-sharing compensation, as set forth in the Articles of Corporation of the Company:

Article 24 of the Articles of Corporation of the Company:

If the Company makes profits (after deducting the pretax income for remuneration to employees and directors), it shall set aside not less than 1% of its annual profit to employees as profit sharing (among which a portion no less than 0.5% of the said profit shall be distributed to non-executive employees) and not more than 3% as compensation for directors. However, if the Company has accumulated losses (including adjustment to undistributed earnings), the losses to be covered shall first be reserved.

The aforementioned employees' compensation can be distributed in the form of shares or cash, and the employees who are entitled to receive the compensation including the employees of subsidiaries who meet the requirements set by the Board of Directors. The aforementioned director's compensation can only be distributed in cash.

Both the aforementioned compensation distribution for employees and directors shall be approved by a special resolution of the Board of Directors and reported to the shareholders' meeting.

The basis for estimating the amount of employee, director, and supervisor profit-sharing compensation, for calculating the number of shares to be distributed as employee profit-sharing compensation, and the accounting treatment of the discrepancy, if any, between the actual distributed amount and the estimated figure, for the current period: The estimated amount of profit-sharing compensation for employees and directors is calculated based on the Articles of Corporation of the Company. If a stock dividend is resolved to be distributed, the number of shares is determined based on the closing price of the day before the shareholders' meeting and the impact of ex-rights and ex-dividends are taken into account. If there is a difference between the actual distribution amount and the estimated amount, it shall be regarded as changes in accounting estimate and recognized as profit or loss of the year of actual distribution.
Information on any approval by the board of directors of distribution of profit-sharing compensation: See Page 20-22 for details.

(As the Company reported no profit for the fiscal year 2025. Accordingly, in accordance with the Company's Articles of Incorporation, no employees' compensation or directors' remuneration shall be distributed.

The actual distribution of employee, director, and supervisor profit-sharing compensation for the previous fiscal year (with an indication of the number of shares, monetary amount, and stock price, of the shares distributed), and, if there is any discrepancy between the actual distribution and the recognized employee, director, or supervisor profit-sharing compensation, additionally the discrepancy, cause, and how it is treated:

(1) The proposed distribution of cash compensation for employees of NT$3,235,100 and directors of NT$616,000 for FY2024 was approved by the Board of Directors on February 26, 2025, and reported to the shareholders' meeting on May 29, 2025.

(2) If there is any discrepancy between the actual distribution and the recognized employee,

104 -

director, or supervisor profit-sharing compensation, additionally the discrepancy, cause, and how it is treated: No discrepancy between the aforementioned distribution amounts and the recognized expenses for employees, directors, and supervisors for the fiscal year.

Reason for the discrepancy: None.

Treatment of the amount of difference: No discrepancy for the current period.

3.1.6 Share repurchases by the Company: Not applicable.

3.2 Issuance of corporate bonds: None.

3.3 Preferred shares: None.

3.4 Global depository receipts: None.

3.5 Employee share subscription warrants: None.

3.6 New restricted employee shares: None.

3.7 Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies: None.

3.8 Capital allocation plans

With respect to each uncompleted public issue or private placement of securities, and to such issues and placements that were completed in the most recent 3 years but have not yet fully yielded the planned benefits, the annual report shall provide a detailed description of the plan for each such public issue and private placement: None.

105 -

IV. Operational Highlights

4.1 Business Activities

4.1.1 Business Scope

The main scope of the company's business activities:
(1) Recombinant protein for research uses only (RUO)
(2) Polyclonal antibodies for RUO, including mouse MaxPab, rabbit MaxPab, and rabbit DNAxPab
(3) Monoclonal antibodies, Recombinant antibodies, and NanoAb™
(4) Antibody pairs
(5) Customized recombinant protein and antibody for RUO
(6) Other major products:
A. Cell Lysate Preparation for RUO
B. Kits for RUO
C. Fluorescent dye
D. DNA probes for in situ hybridization (ISH)
E. mutaFISH™ probes
F. Small-molecule RNA probe (TNA dig miRNA Probe)
G. Tissue Slide
H. Beads, ActiveBeads
I. Pseudovirus
J. Laboratory disposable reagents
K. Negative Enrichment Cell Isolation and Retrieval System (LiquidCell™)
L. High-throughput extraction and purification precipitation system (Precipitor™ 32 Plus)
M. Non-invasive Circulating Rare Cell (CRC) Positive Enrichment & Retrieval System (CytoQuest™ CR)
N. CytoQuest™ kits and consumables
O. Spiral Hybrid Magnetic Bead Treatment System (Spiraltor™ 48)
P. Spiral Hybrid Magnetic Bead Treatment System (SpiralPipet™)
Q. All-in-One Imaging System with Artificial Intelligence Solution (CytoView™)
R. Cell Line
Existing products (services) provided by the Company

(1) Protein: 21,196 types
Recombinant protein: 20,837 types
Protein- fragment: 636 types
Protein- full-length: 14,417 types
Activated protein: 3,197 types

(2) Polyclonal antibody (Pab): 48,104 types
(3) Pab (mouse MaxPab): 9,045 types
Pab (rabbit MaxPab): 4,365 types
Pab (rabbit DNAxPab): 12,197 types

(4) Monoclonal antibody (mAb): 37,714 types
Recombinant antibody (rAb): 5,662 types
Nanobody (NanoAb™): 199 types

(5) Antibody Pair: 4,041 types
(6) Other major product
A. Cell Lysate Preparation for RUO: 594 types
B. Kit: 4,480 types
C. Fluorescent dye: 115 types
D. DNA probe for ISH: 1,397 types

106 -

E. mutaFISH™ probe: 32 types
F. TNA dig miRNA Probe: 71 types
G. Tissue Slide: 43 types
H. Beads: 25 types
ActiveBeads: 3 types
I. Pseudovirus: 9 types
J. Laboratory disposable reagents: 336 types
K. LiquidCell™: 1 type
L. Precipitator™ 32 Plus: 1 type
M. CytoQuest™ CR: 1 type
N. Spiraltor™ 48: 1 type
O. SpiralPipet™: 1 type
P. CytoQuest™ CR kits and consumables: 55 types
Q. CytoView™: 1 type
R. Cell Line: 120 types

(7) Customized products: The Company also accepts product customization, and the feasibility of customization is evaluated through the discussion on the professional details and product specifications between the technical personnel from both parties.

3. Development of new products

(1) RNA Laboratory Reagents

mRNA products: Provide capping reagents, reaction enzymes, nucleotides, and products related to mRNA synthesis and purification, widely applied in gene expression studies and mRNA vaccine development.
circRNA products: Focus on synthesis and labeling-related technologies, enabling researchers to investigate the molecular stability, biological functions, and potential applications of circRNA in depth.
dsRNA products: Primarily used for double-stranded RNA research, supporting RNA interference mechanisms and innate immune response analysis. The products include dsRNA antibodies and assay kits suitable for functional studies at both cellular and molecular levels.
miRNA products: Offer comprehensive solutions including probes, PCR reagents, and purification tools for the detection, quantification, and analysis of miRNA-mediated gene regulatory mechanisms.
lncRNA products: Currently focused on PCR-related reagents for research applications, supporting expression analysis and functional studies of long non-coding RNAs.
Total RNA products: Provide a complete set of reagents and tools from RNA extraction and purification to downstream analysis, enabling researchers to establish stable and high-quality RNA experimental workflows.

107 -

RNA Laboratory Reagents:

www.abnova.com/en-global/product?category=BE000000000

(2) In Vivo Functional Grade Antibodies

These products cover two major categories:

Antibodies targeting mouse genes: Suitable for studies involving implantation of mouse tumor cells into immunocompetent mice, enabling the simulation of target gene functions and effects within the mouse immune system.
Antibodies targeting human genes: Suitable for models involving implantation of human tumor cells into immunodeficient mice, simulating the targeting effects and regulatory mechanisms of antibodies against human tumors.

These two systems are designed to address different tumor origins and immune backgrounds, providing a more comprehensive evaluation of in vivo functionality and helping researchers thoroughly validate the biological activity of antibody targets. In vivo functional grade antibodies have become essential tools in tumor immunology, immune regulation, and disease model research. They not only enable precise simulation of physiological mechanisms but also effectively support the validation of the therapeutic potential of antibodies, thereby accelerating drug development and the translational research process.

In Vivo Functional Grade Antibodies Product Catalogue:

www.abnova.com/en-global/product/specializedproductsearch/invivomab

(3) VLP and Nanodisc Membrane Protein Expression Systems:

VLP platform: Composed of virus-like shells, this platform can stably encapsulate membrane proteins and simulate the native membrane environment. It does not contain viral genomes and therefore ensures a high level of safety.
- Nanodisc platform: Provides a membrane environment similar to that of natural cell membranes, allowing membrane proteins to maintain correct structure and activity. Without the need for surfactants, membrane proteins can be stably dissolved in

aqueous solutions, facilitating downstream analysis and drug screening.

VLP and Nanodisc Membrane Protein Product Catalogue

www.abnova.com/en-global/product/specializedproductsearch/vlpnanodisc

(4) circRNA Sponge

circRNA Sponge is an artificial circular non-coding RNA that integrates multiple miRNA-targeting sequences, thereby enhancing the range of miRNA adsorption. Compared with linear RNA sponges, circRNA Sponge lacks $5^{\prime}$ and $3^{\prime}$ ends, exhibits low immunogenicity without the need for nucleoside modification, and is resistant to exonuclease degradation, thereby improving adsorption stability and efficiency. circRNA Sponge also overcomes the toxicity concerns associated with traditional anti-miRNA oligonucleotides (AMOs) and the dose limitations of plasmid-based circRNA Sponge. Abnova has successfully overcome challenges related to production capacity and purity, and has validated the biological activity of circRNA Sponge in cell-based in vivo assays. This stable and highly efficient circRNA Sponge product line supports miRNA research in both in vitro and in vivo assays.

circRNA Sponge Service :

www.abnova.com/en-global/services/circrna_sponges

(5) RNAutomation™ mRNA Upgrades :

Since 2019, Abnova has been dedicated to developing RNA IVT platforms. Building on its long accumulated capacity in RNA cancer vaccine development, Abnova has launched the world's first integrated RNA automated production platform—RNAutomation™ mRNA Upgrades System. With Opentrons Flex™ as its core, the system integrates pre-validated software, reagents, and consumables from Abnova, enabling automated execution of IVT, capping, oligo(dT) purification, and cellulose purification processes. It consistently produces mRNA with high uniformity and reproducibility, suitable for pharmacological evaluation, dose optimization, and preclinical research.

handling modules—it also introduces Abnova's self-developed vacuum suction module. This module enables the purification process of cellulose to effectively remove double-stranded RNA (dsRNA) impurities commonly seen during mRNA production, thereby improving mRNA purity and quality.

RNAutomation™ mRNA Upgrades System : www.abnova.com/en-global/systems-automations/detail/m0028

RNAutomation™ Service : www.abnova.com/en-global/services/rnautomation_service

RNAutomation™ Videos : www.abnova.com/en- global/support/abvideo/system/content/rnautomation_mrna_service_video

4.1.2 Overview of industry

Current status and development of industry

(1) Current status of the global biotech industry's development In 2025, the global economy faced constraints from high U.S. tariffs and persistent inflation concerns, which suppressed overall procurement demand. However, the continued strained relationship between the United States and China, the prolonged Russia-Ukraine war, and worsening instability in the Middle East affect global energy and resource supply. These

conflicts can pose potential risks to the global economy. Whether these developments may also affect the growth of the biotechnology industry remains an issue worth monitoring.

Driven by global population aging, the rise of chronic diseases, and increased public health awareness following the pandemic, the medical device market continues to grow. As global demand for precision medicine increases, advancements in digitalization and telemedicine have accelerated innovation in medical devices. The market is steadily shifting toward more personalized healthcare solutions, including the use of artificial intelligence to improve diagnostic accuracy and treatment efficiency, as well as the development of wearable devices and remote monitoring systems to support home-based patient care. Governments around the world are implementing new healthcare reimbursement systems, aimed at reducing medical costs, enhancing efficiency, and minimizing healthcare waste. These new measures are driving the growth of the global biotechnology industry, helping to alleviate the impact of economic factors.

Driven by technological innovations and the integration of cross-disciplinary applications—such as mRNA technology, cell therapy, gene editing, nucleic acid technology, and antibody technology, the global biotechnology industry has accelerated the development and market launch of products like Chimeric Antigen Receptor T-cell (CAR-T) therapies and Antibody-Drug Conjugates (ADCs). Furthermore, the implementation of digital tools, AI, and big data not only provides new strategies for disease treatment and improves cure rates but also extends forward into disease prevention and prediction. This facilitates the construction of personalized precision medicine and national technological pandemic prevention frameworks.

Global pharmaceutical market

The global pharmaceutical market continues to grow, with sales of high-growth drugs stabilizing while competition in the generics sector remains intense. Leading advanced economies—including Europe, the U.S., Japan, Canada, and Australia—account for approximately 68% of the global market. Among them, the U.S. maintains its dominant position as the world's largest pharmaceutical market; consequently, global innovative drug developers predominantly target Europe and the U.S. for new drug launches. As the U.S. employs increased tariff rates as leverage in international negotiations to encourage the reshoring of overseas manufacturing—aiming to create jobs and drive economic growth—the rapid development of pharmaceutical markets in China, Brazil, India, and Russia also warrants attention. These emerging markets account for approximately 17.84% of the global total and are expected to become major drivers of market growth.

According to IQVIA's analysis, oncology, immunosuppressive agents, diabetes therapies, cardiovascular drugs, and central nervous system (CNS) treatments are expected to remain the top five global therapeutic categories. The oncology market is projected to experience robust growth, driven by the continuous advancement of innovative therapies, with a forecasted compound annual growth rate (CAGR) of 14–17%. In contrast, the immunosuppressive drug market faces increasing competition from the approval and commercialization of biosimilars, which is expected to impact treatment adoption and moderate market expansion. As a result, the immunosuppressive sector is anticipated to grow at a more modest CAGR of 2–5% over the next five years. The CAGR for hypoglycemic drugs also being revised downward to 3–6%. The sales of the specialty drugs that used to treat chronic diseases, rare diseases, etc. is expected to increase to 40% of the global pharmaceutical market share by 2024. The development of the pharmaceutical market will be influenced by the adoption of Real World Data/Real World Evidences by the US FDA as

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a reference for drug review decision-making, as well as changes in the medical environment such as niche biological therapies become mainstream, the uses of mobile medical apps and telemedicine, reduced expenditure on brand drug, the promotion of specialty drugs, slow growth trend for emerging pharmaceutical markets, competition in biosimilars, etc. IQVIA forecasted that the global pharmaceutical market will grow at a CAGR of $5 - 8\%$ in the next 5 years. Growth in advanced markets such as North America, Western Europe, and Japan is expected to decelerate, while China, India, and the Asia-Pacific region are projected to achieve growth exceeding $3\%$ .

The US FDA promotes multiple initiatives for new drug review and listing, including orphan drugs, Fast Track, Breakthrough Therapy, Priority Review, and Accelerated Approval, etc. which simplify or accelerate the review process, shortening the time required for new drug listing. The rigorous review process for new drug listing by the US FDA, coupled with the fact that the US is the world's largest pharmaceutical market, and the drug prices are determined by market mechanisms, resulting in many manufacturers having regarded the US as the first country for new drug listing. This not only allows them to grasp market opportunities, but it also will be more beneficial to their subsequent review in other countries, further strengthening the leading position of the US in the world's new drug market.

From the perspective of drug categories, IQVIA analyzed and estimated that cancer drugs, immunosuppressive agents, and hypoglycemic drugs will remain as the top three therapeutic drug categories in 2026. Meanwhile, out of the top ten drugs, seven of them are biologics (including mAb and recombinant proteins). The rapid growth of the mAb market drives the manufacturers to actively develop new generation antibody technologies and applications, such as bispecific antibodies (BsAbs), multispecific antibodies, and antibody-drug conjugates (ADCs), which represent critical areas of innovation. This trend underscores the growing significance of biopharmaceuticals in driving the expansion of the global pharmaceutical market.

(2) Current status of the biotech industry's development in Taiwan

It is projected that Taiwan will become a super-aged society by 2025. Coupled with the global pandemic and the burden of medical costs arising from chronic diseases, the government is promoting the "Taiwan Precision Medicine Initiative" under the "2030 Health for All" program. Building upon the solid foundation laid in the biotech industry, this initiative aims to leverage the advantages and resources in precision health to strengthen healthcare, medical devices, pharmaceuticals, and agricultural biotechnology, pushing forward the development of biomedical industry and advancing the health and welfare of the nation's citizens. In addition, the implementation deadline for the Act for The Development of Biotech and New Pharmaceuticals Industry was originally scheduled until the end of 2021, but it was deferred to the end of 2031 and renamed as "Act for the Development of Biotech and Pharmaceutical Industry". The Act is additionally applicable to the industry that deals in new dosage forms, digital medicine, innovative technology platforms dedicated to biotech and pharmaceutical industry and the biotech and pharmaceutical companies entrusted with development and manufacturing. The Act encourages both R&D and manufacturing, integrating the advantages of Taiwan's medical technology and information and communication technology to develop biotech and pharmaceutical products that can be more precisely used for treatment, diagnosis, and prevention. Product development and listing can be expedited by using policy tools such as industry guidance, R&D subsidies, tax benefits, and technology business recommendations, etc.

The future development of Taiwan's biotech industry will focus on (1) strengthening the sustained growth of the industry's operations; (2) facilitating the new drugs and medical devices in gaining access to the international markets; (3) accelerating the development of biotech clusters; and (4) improving the regulatory environment to promote emerging industries such as digital healthcare, precision medicine, regenerative medicine, and elderly health and wellness market, as well as strengthening collaboration with global and regional markets. New therapies and technologies are providing new business opportunities as the government relaxes regulations. Cell therapy is anticipated to drive the growth of medical tourism, attracting international patients to Taiwan and redefining the country's biotechnology and biopharmaceutical landscape. This advancement will accelerate the development of the contract development and manufacturing organization (CDMO) sector, strengthen Taiwan's global competitiveness in biopharmaceutical manufacturing, and position Taiwan as a leading hub for international biotech and pharmaceutical R&D.

With the government's active promotion of the biotechnology industry, a comprehensive ecosystem integrating technology, talent, capital, regulations, and industrial clusters has been established. Concrete measures include the establishment of the "Healthy Taiwan Promotion Committee" and the implementation of the "Healthy Taiwan Deep-Cultivation Project." These initiatives integrate National Health Insurance (NHI) big data with AI and 5G technologies to advance 18 objectives across four major domains, ensuring the sustainable development of the healthcare system. Key actions involve implementing vertical integration and the tiered medical system, enhancing the core value of medical professionals, and utilizing smart technology to optimize healthcare processes and efficiency, ultimately fostering the health and well-being of all citizens. In addition to increasing the willingness of domestic companies to invest, it is also anticipated that it will attract multinational biotech companies to invest in Taiwan or engage local biotech professionals by converging the regulations with international standards. The government is confident and determined in promoting Taiwan's biotech industry, and with the support of the semiconductor industry, the future development of the biotech industry can access more opportunities in the market. Concurrently, the industry is

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advancing its net-zero green transition through three key pillars: process optimization, energy transformation, and circular economy. These strategic initiatives are designed to strengthen corporate carbon reduction capabilities and drive the industry toward a sustainable, low-carbon future.

The relationship between the upstream, midstream, and downstream sectors of the industry.

(1) Antibody reagent category

Antibodies and proteins are the major products of the Company, the relationship between the upstream, midstream, and downstream sectors is illustrated in the diagram below:

In terms of the industry structure for the antibody and protein production and marketing process, the production of raw materials and expression systems for recombinant proteins are the key for the upstream industry. Midstream industry is committed to the production of proteins and antibodies. The Company is the midstream industry of protein and antibody production, committed to large-scale production of products with high quality to supply to various agencies such as research institutions, medical systems, pharmaceutical companies, etc. for basic research. The downstream industry comprises mainly research institutions or enterprises related to biotechnology R&D, medical, and agricultural industry at home and abroad for various research and experiments.

(2) Detection system instruments

The upstream of the circulating rare cell enrichment, separation, and collection system primarily originates from the design, manufacturing, and assembly of precision, temperature-controlled microfluidic modules, biochips, and related consumables. The core applications of the system focus on the high-efficiency capture and purification of circulating tumor cells (CTCs) and circulating fetal cells (CFCs). On the downstream application side, CTC detection can be widely applied in hospital clinical diagnostics and academic research. Its applications include early cancer screening, disease prognosis assessment, development of personalized treatment strategies, monitoring of treatment response and drug resistance, and early warning of recurrence and metastasis risks. In addition, this also serves as an important tool for the pharmaceutical industry in cancer drug development, efficacy evaluation, and biomarker analysis in clinical trials. Furthermore, the enrichment and detection technologies for CFCs can be applied to the study of fetal genetic diseases and genetic defects, providing a critical technological foundation for non-invasive prenatal testing and the advancement of precision medicine.

3. Various development trends for products

(1) Antibody reagent category

Proteins are made through gene transcription and translation that carry out the functional roles of genes. While antibodies are the essential tools for understanding proteins and their functions, Antibodies not only can be widely used in the reagent market, but they also give higher value if used in medical diagnostic reagents and drug development. Proteins are interacted with one another during the process of disease development, which has changed the research method to investigate multiple proteins in one time, to effectively understand the complexity of proteins and may understand the reason for pathological changes. This is the reason why it is necessary to obtain antibodies in a large amount in research. Antibodies play a vital role in medical research or therapy as the current biotech industry still relies on antibody as a tool for related research. In recent years, European and American countries have attached increasing importance to the humane treatment of research animals. In the future, the preparation of antibodies will change to cell culture method to replace the current common method that produces mAb using ascites, which will affect production costs, and the existing manufacturing process also need to adjust.

Abnova's In Vivo Functional Grade Antibodies are specifically designed for mouse and rat in vivo experiments. Featuring high purity and ultra-low endotoxin levels, these antibodies are free of preservatives and stabilizers, effectively minimizing non-specific immune response interference to ensure the safety of animal trials and the reliability of experimental data. All antibodies are validated by flow cytometry, with functionality confirmed through comparative analysis of positive and negative cell lines, ensuring consistent quality and rigorous experimental standards.

(2) RNA Laboratory Reagents

Abnova's RNA laboratory reagents are categorized into six major classes based on RNA molecular structures and biological characteristics: mRNA, circRNA, dsRNA, miRNA, lncRNA, and Total RNA. This comprehensive portfolio covers research applications across different RNA types, supporting diverse experimental requirements ranging from basic research to the preclinical research stage.

(3) Detection system instruments

The diagnosis and treatment of cancer have been a significant challenge for the global medical community in recent decades. Study has demonstrated that if more people are screened regularly for cancer, the cancer-related mortality rate as high as 35% could have been prevented. While during cancer treatment, early detection of tumor metastasis and recurrence is also vital in improving survival rates. The significant discrepancies in the dynamics of primary and metastatic tumor cells and the spread of tumor cells to different organs pose a challenge to the monitoring of tumor cell development and the prognosis of drug treatment for most cancers. Hence, many cancers are often misdiagnosed due to sampling biases in tissue biopsies. In recent years, governments and healthcare organizations worldwide have increasingly paid attention to precision medicine that develops personalized tumor treatment based on molecular subtyping. Precision health takes into account individual variability in genotype or gene expression, environment, lifestyle and molecular basis of disease to precisely predict, prevent, diagnose, and treat diseases. Liquid biopsy can be regarded as one of the important directions for the development of precision health industry. Compared to traditional tissue biopsies, liquid biopsy has the following five major characteristics: non-invasive, fast, accurate, real-time, and diversity of applications. Clinically, liquid biopsy is more competitive in diagnosing, monitoring, and evaluating the effectiveness of drug treatment for diseases. According to the "Circulating Tumor Cells Market Report 2026" published in February 2026, the Circulating Tumor Cell (CTC) market is projected to grow significantly in the coming years. The latest report values the CTC market at US$13.27 billion in 2025, with a projected reach of US$23.88 billion by 2030, representing a compound annual growth rate (CAGR) of 12.3%. Abnova has independently developed an automated Circulating Rare Cell (CRC) capture system platform. This platform is capable of capturing rare cells from blood and performing genomic analysis to facilitate cancer prevention and therapeutic measures. Furthermore, current research and development efforts are focused on CTC-related nanobodies (single-domain antibodies) to enhance the sensitivity of the system platform.

4. Product Competition

(1) Antibody reagent category

Pab is the most common antibody available in the market, and the traditional Pab is produced using peptide, which has poorly folded antigen-responsive protein that can only identify one epitope. Hence, it is limited to use in Western blot and immunofluorescence staining. mAb, which is the main product of the Company, not only can be used in immunohistochemistry,

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immunofluorescence, Western blot, antibody pair, and system development, but also, in recent years, it has been clinically used to treat cancer due to its high specificity. Also, the use of mAb to improve autoimmune diseases has achieved considerable progress and effectiveness. Small-molecule drugs have been gradually replaced by mAb therapy. Therefore, mAb will play a crucial role in biochemical R&D and drug development in the future. The Company not only has established a resourceful mAb database, but also provides high-quality Pab, antibody pairs, proteins, etc., as well as the newly developed nanobodies. Their small-volume properties endow them with excellent tissue penetration capabilities, allowing access to hidden sites that are difficult for traditional antibodies to reach, meeting customer demands with a wide range of products.

Other than providing general reagents for RUO, the Company also complements and supports the applications of diagnostic systems in many aspects, particularly providing biological reagents relating to clinical trials and in vitro diagnostics. The selected biological reagents will be produced in accordance with GMP standards and provided to both internal and external customers of the Company for clinical trials or diagnostic medical device use.

(2) RNA Laboratory Reagents:

mRNA products: Provide capping reagents, reaction enzymes, nucleotides, and products related to mRNA synthesis and purification, widely applied in gene expression studies and mRNA vaccine development.
circRNA products: Focus on synthesis and labeling-related technologies, enabling researchers to investigate the molecular stability, biological functions, and potential applications of circRNA in depth.
dsRNA products: Primarily used for double-stranded RNA research, supporting RNA interference mechanisms and innate immune response analysis. The products include dsRNA antibodies and test kits suitable for functional studies at both cellular and molecular levels.
miRNA products: Offer comprehensive solutions including probes, PCR reagents, and purification tools for the detection, quantification, and analysis of gene regulatory mechanisms of miRNA.
lncRNA products: For research applications, they are currently focused on PCR-related reagents to support expression analysis and functional studies of long non-coding RNAs.
Total RNA products: Provide a complete set of reagents and tools from RNA extraction and purification to downstream analysis, enabling researchers to establish stable and high-quality RNA experiment workflows.

(3) Detection system instruments

CellSearch, a Circulating Tumor Cell (CTC) detection system platform developed by Veridex (a subsidiary of Johnson & Johnson), is currently the world's first product approved by both the U.S. Food and Drug Administration (FDA) and the China Food and Drug Administration (CFDA) for the auxiliary diagnosis of malignant tumors through CTC detection. This platform features the most comprehensive clinical validation, high reproducibility, and the most extensive historical literature. However, its reliance on EpCAM (Epithelial Cell Adhesion Molecule) may be disadvantageous for detecting CTCs undergoing Epithelial-Mesenchymal Transition (EMT) or those with low EpCAM expressions.

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The Parsortix system, developed by ANGLE plc (UK), is an FDA-cleared and IVD-certified medical device for breast cancer tumor cell capture. Utilizing patented microfluidic technology and specialized microfluidic chips, the system separates and collects Circulating Tumor Cells (CTCs) based on cell size. This platform does not rely on a single antigen, allowing for a more comprehensive capture of CTC heterogeneity. However, the configuration of capture parameters can influence the representativeness of CTCs across different size distributions.

CytoQuest™ CR, CytoQuest™ DX, and CytoBot™ are independently developed automated system platforms by Abnova for the capture, counting, enrichment, and collection of Circulating Rare Cells (CRCs). These systems utilize immunoaffinity-based microfluidic positive enrichment and magnetic bead-based negative enrichment methods to capture circulating rare cells in clinical research. CytoQuest™ CR obtained a Class III Medical Device Registration Certificate from China in 2021, further enabling broad assistance in cancer prevention and treatment.

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4.1.3 Overview of technologies and research and development work

Research and development expenditures during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report

Unit: NT$ 1,000; %

Item	FY 2025
R&D Expenditures (A)	45,561
Operating Revenue (B)	351,299
Proportion (A) / (B)	13%

As of the date of publication of the annual report, the financial statements for Q1 2026 have not yet been reviewed and audited by the CPAs, hence only information in the most recent fiscal year is disclosed.

Technologies and/or products successfully developed during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report

Year	Technology or product that has been successfully developed
FY 2025 & FY 2026 up to the date of publication of the annual report	Diagnostic reagents
2025/01/01-2025/12/31:
VHH-His tag NanoAb™ Targeting Mouse ADO, clone P093 (FITC)
VHH-His tag NanoAb™ Targeting Human IL17 Alpha, clone 1234 (FITC)
VHH-His tag NanoAb™ Targeting Human IL1 Beta, clone 1A90 (FITC)
VHH-His tag NanoAb™ Targeting Mouse Gr-1, clone SB34 (FITC)
VHH-His tag NanoAb™ Targeting Mouse VEGF-A, clone 7B52 (FITC)
VHH-His tag NanoAb™ Targeting Human CD34, clone 5031 (iFluor 488)
VHH-His tag NanoAb™ Targeting Human CD1d, clone 8130 (iFluor 488)
VHH-His tag NanoAb™ Targeting Mouse FOLR1, clone H135 (iFluor 488)
VHH-His tag NanoAb™ Targeting Mouse NKG2D, clone 7125 (FITC)
VHH-His tag NanoAb™ Targeting Human SLAMF7, clone 4081 (iFluor 488)
VHH-His tag NanoAb™ Targeting Human MSLN, clone 1132 (iFluor 488)
VHH-His tag NanoAb™ Targeting Mouse TIM-3, clone 4017 (iFluor 488)
VHH-His tag NanoAb™ Targeting Human serum albumin (HSA), clone K138
VHH-His tag NanoAb™ Targeting Mouse TNFR-1, clone 7105
VHH-His tag NanoAb™ Targeting Human CEACAM6, clone P129
VHH-His tag NanoAb™ Targeting Mouse TNFR-1, clone 7105 (FITC)
VHH-His tag NanoAb™ Targeting Human CEACAM6, clone P129 (FITC)
VHH-His tag NanoAb™ Targeting Human Plasma Kallikrein, clone E078
VHH-His tag NanoAb™ Targeting Mouse CDX2, clone F134
VHH-His tag NanoAb™ Targeting Human Plasma Kallikrein, clone E078 (FITC)
VHH-His tag NanoAb™ Targeting Mouse CDX2, clone F134 (FITC)
VHH-His tag NanoAb™ Targeting Human PD-L1, clone H140
VHH-His tag NanoAb™ Targeting Human PD-L1, clone H140 (Aster 647)
CSV VHH recombinant monoclonal antibody, clone 5098
VHH-His tag NanoAb™ Targeting Mouse IL15, clone H227
VHH-His tag NanoAb™ Targeting Mouse SLAMF7, clone 8293
VHH-His tag NanoAb™ Targeting Mouse IL15, clone H227 (FITC)
VHH-His tag NanoAb™ Targeting Mouse SLAMF7, clone 8293 (FITC)
VHH-His tag NanoAb™ Targeting Mouse CD8
VHH-His tag NanoAb™ Targeting Mouse CD11b
VHH-His tag NanoAb™ Targeting Human PD-1, clone 6110
TIM-3 scFv-hIgG1 humanized monoclonal antibody
PD-L1 scFv-hIgG1 humanized monoclonal antibody

Year	Technology or product that has been successfully developed
	TIGIT scFv-hIgG1 humanized monoclonal antibody
CEACAM5 scFv-hIgG1 humanized monoclonal antibody
CLDN18.2 scFv-hIgG1 humanized monoclonal antibody
OX40 scFv-hIgG1 humanized monoclonal antibody
CD19 scFv-hIgG1 humanized monoclonal antibody
VHH-His tag NanoAb™ Targeting Human PD-1, clone 6110 (Aster 488)
ICAM-1 scFv-hIgG1 humanized monoclonal antibody
GM-CSF scFv-hIgG1 humanized monoclonal antibody
IL-10 scFv-hIgG1 humanized monoclonal antibody
IL-8 scFv-hIgG1 humanized monoclonal antibody
CD47 scFv-hIgG1 humanized monoclonal antibody
PD-1 recombinant monoclonal antibody, clone E
PD-L1 recombinant monoclonal antibody, clone A
TNF-alpha scFv-hIgG1 humanized monoclonal antibody
VHH-His tag NanoAb™ Targeting Mouse CD36, clone 6115
VHH-His tag NanoAb™ Targeting Mouse CD56, clone 2284
VHH-His tag NanoAb™ Targeting Mouse cMet, clone 9020
VHH-His tag NanoAb™ Targeting Mouse cMet, clone 9020 (Aster 488)
VHH-His tag NanoAb™ Targeting Human FAS, clone 2A35
VHH-His tag NanoAb™ Targeting Human FAS, clone 2A35 (Aster 488)
ICAM-1 scFv-mIgG1 recombinant monoclonal antibody
VHH NanoAb™ Targeting Human CD13, clone AEG (FITC)
2026/01/01-2026/02/28:
VHH NanoAb™ Targeting Human PSMA, clone A8E
RNAutomation™ mRNA pTK4 EGFP Control
RNAutomation™ mRNA pTK4 FLuc Control

Patent Titles
Automated System and Method for RNA Production and Purification
Modular Solid Phase Extraction System with Separate Positive and Negative Pressure Modules for Robotic Liquid Handling Platforms |

3. Intellectual property management plan and implementation

Intellectual property rights are important intangible assets of the Company. The Company continues to implement its intellectual property management system. In addition to actively safeguarding its own intellectual property rights, the Company also carefully evaluates and respects the intellectual property rights of others to avoid infringement risks and to ensure the legality and sustainable development of its operations.

(1) Key intellectual property protection measures

A. Patent management

Patent portfolio and strategic planning:

In line with product development directions, the Company systematically reviews patents related to relevant technologies, monitors the industry patent landscape, and files patent applications for innovative technologies to strengthen technological protection and competitive advantages.

Regular maintenance and review:
During the annual budget compilation, the Company regularly reviews the actual utilization and future development needs of granted patents and evaluates whether continued maintenance is necessary to ensure the efficient use of patent resources.
Patent review system:
In accordance with the new product development process, the Legal Department conducts patent searches for new products or technologies to assess potential infringement risks. Prior to filing patent applications, internal review procedures are required, including prior art searches and patentability assessments, to enhance patent quality and reduce legal risks.
Patent awareness promotion:
Through internal control systems and training programs, the Company continuously strengthens employees' understanding of and attention to the patent system, thereby deepening the awareness of intellectual property protection.

B. Trademark management

Brand positioning & planning:
The Company files trademark applications for its corporate name and key products to safeguard brand identity and market interests.
Regular maintenance and review:
Registered trademarks are periodically reviewed for usage status, and the necessity of continued maintenance is evaluated to ensure the validity of trademark rights.

C. Trade secret protection

Security Management:
All employees are issued access cards, and tiered access control is implemented across the headquarters, plants, and laboratories. Computer equipment and system software are subject to strict access control based on job responsibilities, with regular password updates and strong password policies enforced to ensure data security.
Confidential Document Management:
Each department maintains both physical and electronic document management systems. Confidential documents stored physically are kept by designated personnel in locked cabinets. Documents stored in cloud systems are protected by access controls, and unauthorized personnel must follow formal application procedures and obtain approval from responsible supervisors before access is granted.
Enhancement of intellectual property protection awareness:
The Legal Department conducts periodic training and awareness programs to strengthen employees' commitment to protecting intellectual property and trade secrets.
Confidentiality Agreement Management:
Employment contracts include confidentiality and non-compete clauses. Directors and managerial officers are required to sign a "Confidentiality Undertaking and Declaration of Compliance with Integrity Management Policies" to fulfill confidentiality obligations and prevent leakage of company secrets. In addition, the Company enters into non-disclosure
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agreements with suppliers and customers to clearly define confidentiality obligations and safeguard the interests of both parties.

(2) Implementation status

A. The Company reports intellectual property-related matters to the Board of Directors at least once a year. The most recent report was presented on November 11, 2025.
B. The Company has established various intellectual property management systems for compliance
C. Intellectual property management plan linked to operational objectives and 2025 implementation status:

Target Plan	Implementation Status:
Patent applications: 1–5 cases	3 patent applications for new products/technologies in 2025
Trademark applications: 1 case	4 trademark applications in 2025
Review of confidentiality agreements: 10–20 cases	18 confidentiality agreements reviewed
Patent searches: 1–5 cases	No patent search cases in 2025
Internal training: 1 session	1 internal training session on intellectual property management conducted in 2025
Annual inventory	Intellectual property inventory conducted in November 2025
R&D projects executed according to the planned schedule	All R&D projects are progressing as scheduled; R&D units carry out execution, tracking, and documentation in accordance with the regulations

4.1.4 Long- and short-term business development plans

1. Short-term business development plan

(1) Antibody reagent category

Regarding bio-reagent product line for RUO, Abnova will continue to invest more in the production of mAbs through cell culture processes and its sales. In addition, Abnova is also actively developing customized miRNA probe services and general products, circRNA Sponge, recombinant antibodies, nanobodies, and reagents for CellTx™ cellular therapy, providing the most advanced research tools and a wide range of choices to support customers in the development of relevant research fields.

The established global distribution network of Abnova is the main sales channel of the Company, contributing the majority of operating revenue for reagent products. With years of brand building, the Company has successfully increased the direct purchase willingness from the end users through an online purchase platform. In addition, the increasing demand for customized services from end customers in specialized research fields, biotech companies, and pharmaceutical industry has driven Abnova's efforts to meet the professional and quality requirements of both direct and customized demand customers, enhancing customer loyalty and product repurchase frequency through product promotion. For e-commerce marketing platforms, Abnova has achieved good marketing results on Google, BioCompare, and LinkedIn.

Since 2025, Abnova has collaborated with CiteAb, an AI-powered search engine for academic literature, to integrate the AI Citation Widget into its official website. By leveraging advanced AI technology to import massive citation datasets, the platform provides real-time academic citation information for Abnova's products. In 2026, this partnership will be further deepened through the implementation of a second-generation SEO-optimized AI Citation Widget, aimed at enhancing the visibility of Abnova's products within Google scholarly search results. Concurrently, Abnova continues to optimize its website's search functionality to align with the integrated search habits of researchers. A new application-oriented retrieval mechanism has been introduced, allowing users to simultaneously search for product names and specific application fields, thereby improving search efficiency and precision.

In terms of digital marketing strategy, Abnova utilizes LinkedIn advertising to focus on the promotion of new and flagship product lines, effectively reaching the global scientific research community. As of November 2025, the number of email newsletter subscribers has grown to 560,000. Technical content is planned monthly around different themes—covering product technical introductions and new application analyses—to consistently build researchers' trust in Abnova's professional capabilities and brand awareness.

Looking ahead to 2026, Abnova will adopt digitalization and intelligence as its core development directions. By further deepening the application of AI technology and content marketing strategies, the company will integrate academic citations, search experience, and brand promotion to create a more efficient and precision-oriented scientific service platform, continuously strengthening its professional influence in the global research market.

(2) CTC products and medical testing services:

Abnova has successfully established the CytoQuest™ CR positive enrichment and LiquidCell™ negative enrichment platforms and provides a complete range of biological assay testing kits. Abnova currently has resumed its collaboration with Hangzhou Watson Biotech Co., Ltd., for the sales and distribution of CTC products and testing services of Abnova in China. Also, Abnova plans to collaborate with interested partners in the US, Europe, and Japan to jointly develop local markets for CTC instruments and test kit sets through OEM customization. The LiquidCell™ platform continues to focus on the development of prenatal applications for pregnant women. Abnova is currently developing nanobodies targeting circulating tumor cells (CTCs) to enhance the sensitivity of its diagnostic platform.

2. Long-term business development plan

In recent years, Abnova has been actively developing diagnostic reagents, antibody drugs and diagnostic instrument systems, expanding its product portfolio from antibody database establishment in the earlier period. The Company has focused on the production of biological reagents relating to clinical trials and in vitro diagnostics, offering both internal and external customers of the Company for clinical trials or diagnostic medical device use. At the same time, Abnova has successfully launched mutaFISH™ probe for direct detection for gene mutations in cells and tissues. It is extended to its combination and application based on the principle of fluorescence in situ hybridization (FISH). At present, Abnova continues to collaborate with multiple suppliers, actively expanding the variety of ELISA kit product line.

In addition, Abnova will continue to develop CTC product lines and technical services, CTC product lines, mRNA cancer therapy platform, customized miRNA probe services and general products, circRNA Sponge, recombinant antibodies, nanobodies, and reagents for CellTx™ cellular therapy and RNAutomation™ Automated System etc., providing the most advanced research tools and a wide range of choices to support customers in the development of relevant research fields, hoping it will benefit the long-term business development of the Company.

4.2 Market and Sales Overview

4.2.1 Market analysis

1. Geographic areas where the main products (services) of the company are provided (supplied)

Unit: NT$ 1,000; %

Geographic area	FY 2024		FY 2025
		Sales Amount	Sales Proportion	Sales Amount	Sales Proportion
Domestic sales		15,232	4.29%	11,351	3.23%
Foreign sales	Americas	183,229	51.57%	170,090	48.42%
	Europe	84,043	23.66%	90,189	25.67%
	Others	72,753	20.48%	79,669	22.68%
	Total	340,025	95.71%	339,948	96.77%
Grand total		355,257	100.00%	351,299	100%

2. Market Share

(1) Antibody reagent category

Currently, no statistical information related to the antibody reagent industry and the market by relevant industry research institutions at home and abroad is available, hence, no public information can be used for market share calculation and analysis. According to the research of Biocompare Surveys and Report, no single company has been able to achieve a high market share primarily due to the high manufacturing costs and low efficiency of antibody production, numerous brands with varying quality, difference in customer's experimental needs and budget, resulting in a fragmented market share. The Company provides customers with a wide range of antibodies, mainly to maintain the willingness to repurchase existing customers in order to maintain market share.

(2) Detection system instruments

At present, the circulating rare cell enrichment, separation, and collection system, as well as Next-Generation Sequencing (NGS) technology, are both core components in the field of precision medicine diagnostics. The former captures and isolates cells based on their biological marker characteristics or physical properties, offering the advantage of non-invasive testing. It is applicable to liquid biopsy samples, such as blood, and enables disease monitoring and risk assessment without the need for traditional tissue biopsy. The latter enables high-throughput analysis of cellular genotypes and molecular expression, featuring high technical barriers and forward-looking capabilities, and serves as a key tool in the practice of precision medicine.

Currently, the application of circulating rare cell enrichment and separation systems remains primarily focused on scientific research and translational medicine, and in clinical settings is mostly at the stage of clinical validation and comparative studies or clinical

trials. The overall market size and clinical acceptance continue to grow, with Mainland China demonstrating relatively rapid progress in policy support and the introduction of clinical applications. The Company's circulating rare cell detection system products have established a first-mover advantage in the Chinese market and, compared with similar competing products, maintain a relatively leading position in terms of market share.

After years of development, Next-Generation Sequencing technology has reached practical clinical application standards in terms of accuracy, throughput efficiency, and cost control. Its applications cover tumor molecular testing, genetic disease screening, newborn genetic testing, and companion diagnostics. With the growing demand for precision medicine, NGS has become an indispensable analytical tool for clinical decision-making and new drug development.

The Company has formally entered the Next-Generation Sequencing market and, based on clinical needs and practical application scenarios, collaborates with clinicians and research institutions to develop multiple targeted cancer gene sequencing panels, thereby enhancing the competitiveness of its products in the precision medicine and oncology diagnostics markets.

3. Future demand and supply conditions and the market's growth potential

(1) Antibody reagent category

Based on the research report by the World Health Organization (WHO), the number of new cancer cases worldwide will reach 27 million per year by 2030, with 17 million deaths, and the situation may become even more severe. Not only European and American countries facing such situation, but the situation in developing countries such as China and India are fairly serious. Therefore, cancer prevention and treatment related products are becoming a focus for major global companies. Biopharmaceuticals are becoming increasingly important in the global pharmaceutical market, with treatment areas covering cancer, infectious diseases, neurological disorders, antivirals, diabetes, etc. In view of increasing market demand has not been addressed, therefore, coupled with the promising prospects of the antibody drug market and the support from both healthcare reform policies and the industry, the mAb drug development will continue to lead the global biotech industry.

(2) Detection system instruments

According to a report by Verified Market Research, the cancer diagnostics market was valued at US$111.7 billion in 2024 and is projected to reach US$188.43 billion by 2031, representing a compound annual growth rate (CAGR) of 6.77% during the forecast period from 2024 to 2031. Overall, driven by the rising global incidence of cancer, the accelerating trend of population aging, and continuous government promotion of cancer screening and early diagnosis policies, the demand for cancer diagnostic-related markets is expected to sustain its growth.

Furthermore, recent advancements in biomarker research, molecular diagnostic technologies, Next-Generation Sequencing (NGS), and liquid biopsy have extended cancer diagnostics from traditional imaging and histopathology into molecular-level analysis. Observations from various healthcare research and investment institutions indicate that precision medicine and companion diagnostics (CDx) have increasingly become essential tools for cancer treatment decision-making, driving the application demand for related testing technologies and diagnostic products.

Simultaneously, the integration of Artificial Intelligence (AI) and digital healthcare

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technologies in image interpretation, pathological analysis, and medical data integration is gradually increasing, which helps enhance diagnostic efficiency and accuracy. In summary, propelled by multifaceted factors including technological progress, increasing clinical demand, and supportive medical policies, the cancer diagnostics market is expected to maintain steady growth over the coming years.

4. Competitive Niche

(1) Construct a complete antibody platform

With years of antibody production experience under the process standardization, equipment automation, and product systematization, the Company has constructed a complete and extensive antibody database platform. Leveraging on the existing antibody platform, the Company identifies potential antibodies for antibody drug development and develops into antibody database system with high added value and diagnostic reagents and further develops into antibody drugs. Currently, the Company has successfully developed many highly specific antibody reagent products that are compatible with CTC detection instrument systems. This has also overcome a critical obstacle in technical applications that other CTC detection instrument companies have been struggling with.

(2) Continuously developing new products

Abnova has successfully developed a rabbit mAb platform by using its independently developed CRC enrichment system. The platform utilizes pre-immune rabbit plasma to isolate cells for production, which improves the screening throughput and significantly shortens the production cycle of rabbit mAb. Abnova predicts that the market demand for rabbit mAb will continue to increase in the next few years. At the same time, Abnova has successfully launched mutaFISH™ probe for direct detection for gene mutations in cells and tissues. It is extended to its combination and application based on the principle of FISH. At present, Abnova continues to collaborate with multiple suppliers, actively expanding the variety of ELISA kit product line. The Company is also developing customized miRNA probe services and general products, circRNA Sponge, recombinant antibodies, nanobodies, and reagents for CellTx™ cellular therapy, mRNA cancer therapy platform, RNAutomation™ Automated System, to continue enhancing its competitiveness.

(3) Custom Antibody Services

Leveraging years of expertise in antibody production, the Company has provided customized protein and antibody services to a diverse customer base, including end-users in specialized research fields, biotechnology firms, and the pharmaceutical industry. In 2025, the Company is expanding its offerings to include a broader range of customized solutions, such as nanobodies, VHH bispecific antibodies, VHH nanoBiTE™, and nanoCAR-T mRNA. These advancements aim to meet clients' increasing demands for precision and quality while enhancing their long-term engagement with Abnova's products and services.

(4) Multi-dimensional distribution network and collaborative partnerships

The global and regional distribution network system established by the Company is the main driver of the Company's operation. The Company establishes brand awareness and builds a customer base through well-known global distribution channels in the industry. Meanwhile, the Company establishes a direct sales customer base by collaborating with renowned academic institutions, research centers, and pharmaceutical companies at home and abroad. At the same time, Abnova has achieved good marketing results on Google, BioCompare, and LinkedIn. In 2023, Abnova established a new official website, offering direct customers a simpler, more convenient, and seamless online purchasing experience. The user-friendly design of the member center also takes into account mobile interface design, providing a

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new, visually intuitive appearance and comprehensive user browsing privacy protection. This meets consumer needs and increases the willingness of end customers to make direct purchases through the website. In 2026, the company will continue to deepen its collaboration by implementing the second-generation SEO-optimized AI Citation Widget, aimed at enhancing the visibility of Abnova's products within Google scholarly search results.

5. Favorable and unfavorable factors for future development and the corresponding responses

(1) Favorable factors

Antibody reagents

A. A complete antibody platform

The antibody platform is an important foundation and asset of the Company, which can be used as an important tool for the development of medical diagnostic reagents and mAb drugs. The practical benefits of the Company's proprietary antibody database are highlighted when collaborating with external institutions to develop diagnostic reagents, drugs, and detection system instruments.

B. Marketing channels network

The Company's global sales network includes global or regional distribution contracts, that have established the sales channel to academic institutions, research centers, or pharmaceutical development companies worldwide through distributors. Meanwhile, the Company has a well-established online sales platform that enables customers to quickly and conveniently search for the products they need, providing them with complete product information and increasing their willingness to place orders.

C. Promotion of precision medicine

The implementation of "Precision Medicine Programs" by various countries will lead the way to a new era of medicine. Precision, timeliness, sharing, and personalization are the four main themes of the Precision Medicine Program. It is hoped that appropriate treatment can be delivered to patients at the appropriate time in the future, and public and private entities are encouraged to share information through the implementation of the program.

D. Government supports the biotech industry

The "Act for the Development of Biotech and Pharmaceutical Industry" has become a new development direction for Taiwan's biotech industry since 2022. The Act incorporated areas such as healthcare, medical devices, pharmaceuticals, and agricultural biotechnology based on the existing biotech industry. It is hoped that the development of the bioeconomy will drive the growth and diversification of Taiwan's industries and fields. Also, it is expected that the new government will provide more support and assistance to Taiwan's biotech industry.

E. Continuously developing new products and applications

The reagent production is mainly focused on the applications in combination with instrument systems, incorporating reagents (e.g., antibodies, FISH probes, and reagent kits) and consumables, actively accumulating practical clinical experiments, and developing more disease-specific detection reagent kits. Since 2024, the Company has continuously expanded its product development portfolio, including nanobodies, nanoCAR-T mRNA services, CellTx™ reagents for cell therapy, and the RNAutomation™ automated system.

(2) Unfavorable factors

Antibody reagent category

A. New technologies replacing the use of antibodies

At present, antibodies are the most effective tools in protein research. However, there is

currently no standardized method for producing antibodies, and the quality of the output can vary greatly depending on the manufacturing process, indirectly affecting the reliability of the antibodies. In the future, there may be other tools to replace antibodies.

Response

The Company increases the functionality and usability of antibodies to increase the added value of products. The Company has focused on the production of biological reagents relating to clinical trials and in vitro diagnostics, offering to both internal and external customers of the Company for clinical trials or diagnostic medical device use, creating business opportunities beyond the sales for general research purposes only.

B. The antibody market is becoming increasingly competitive

There are many brands of antibodies on the market, with varying levels of quality. Given that customers have limited research budgets, resulted in increasing price competition in the antibody market, especially with low-priced but poor-quality brands from Mainland China disrupting the pricing of antibodies and affecting sales profits.

Response

Pharmaceutical or biotech companies have a lot of purchasing opportunities for a variety of products due to R&D needs. The Company offers a diverse selection of antibodies, including unique antibody products, providing customers with a one-stop solution to address all their product needs. In addition to maintaining the quality of the products, the Company will also conduct additional application testing on specific antibodies to increase their added value and differentiate them in the market, in response to the price war in the antibody market.

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4.2.2 Usage and manufacturing processes for the company's main products

1. Monoclonal Antibodies

A. Applications of Monoclonal Antibodies:

Product category	Applications
Monoclonal Antibodies	Chemical reagents testing, agricultural testing reagents.
	Animal model studies and biomedical research applications.
	Laboratory reagent testing applications.

B. Production Processes for Monoclonal Antibodies:

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2. Polyclonal Antibodies

A. Applications of Polyclonal Antibodies:

Product category	Applications
Polyclonal Antibodies	Chemical reagents testing, agricultural testing reagents.
	Animal model studies and biomedical research applications.
	Laboratory reagent testing applications.

B. Production Processes for Polyclonal Antibodies:

3. Recombinant Proteins

A. Applications of Recombinant Proteins:

Product category	Applications
Recombinant Proteins	Chemical reagents testing, agricultural testing reagents.
	Biomedical research applications.
	Laboratory reagent testing applications.

B. Production Processes for Recombinant Proteins:

4.2.3 Supply situation for the company's major raw materials

Major Raw Materials	Major Suppliers	Supply Situation
Protein raw materials	Supplier C	Stable, good
Reagent for cell culture	Supplier LT, Supplier LB, Supplier U	Stable, good
Plasmid extraction kit	Supplier Q	Stable, good
Purification reagent	Supplier U, Supplier LB	Stable, good
Adjuvant	Supplier U, Supplier LB	Stable, good

4.2.4 List of suppliers and clients accounting for 10 percent or more of the company's total procurement (sales) amount in either of the 2 most recent fiscal years, the amounts bought from (sold to) each, the percentage of total procurement (sales) accounted for by each, and an explanation of the reason for increases or decreases

Information on major suppliers in the 2 most recent fiscal years:

The information on major suppliers for FY 2024 and FY2025 is shown below:

Unit: NT$ 1,000

Item	FY 2024				FY 2025
	Name	Amount	Percentage of annual net procurement amount (%)	Relationship with issuer	Name	Amount	Percentage of annual net procurement amount (%)	Relationship with issuer
1	Others	156,436	100.00	-	Others	146,096	100.00	-
	Net procurement amount	156,436	100.00	-	Net procurement amount	146,096	100.00	-

Reason for increase or decrease:

In 2024 & 2025, there was no supplier whose net purchase amount accounted for more than 10% of the total net purchase amount.

Information on major customers in the 2 most recent fiscal years:

The information on major customers for FY 2024 and FY2025 is shown below:

Unit: NT$ 1,000

Item	FY 2024				FY 2025
	Name	Amount	Percentage of annual net sales amount (%)	Relationship with issuer	Name	Amount	Percentage of annual net sales amount (%)	Relationship with issuer
1	Others	355,257	100.00	-	Customer A	37,109	10.56	-
2	-	-	-	-	Others	314,190	89.44	-
	Net sales amount	355,257	100.00		Net sales amount	351,299	100.00

Reason for increase or decrease:

Customer A, a major customer accounting for more than 10% of sales in 2025, was also the Company's largest customer in 2024. However, as its percentage of net sales in 2024 was 9.98%, falling below the 10% disclosure threshold, there have been no significant changes in the Company's major customers over the most recent two years.

Year		FY 2024	FY 2025	As of April 10, 2026
Number of employees	Manufacturing personnel	55	55	54
	Sales and marketing personnel	26	26	25
	R&D personnel	9	9	9
	Total	90	90	88
Average years of age		43.72	44.36	44.73
Average years of service		12.67	12.94	13.30
Education levels	Ph.D.	5%	4%	5%
	Master's	29%	30%	30%
	Bachelor's or other higher education	64%	65%	64%
	High school	2%	1%	1%
	Below high school	0%	0%	0%

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4.4 Environmental Protection Expenditure

No environmental protection expenditure

4.5 Labor Relations

4.5.1 Employee benefit plans, continuing education, training, retirement systems, and the status of their implementation, and the status of labor-management agreements and measures for preserving employees' rights and interests

Employee benefit plans, continuing education, training, retirement systems, and the status of their implementation, and the status of labor-management agreements and measures for preserving employees' rights and interests:

(1) Employee benefit plans and implementation status

Both labor and management in the Company have a consensus of complementary and synchronous growth. The Company has established an Employee Welfare Committee and has set aside welfare funds and managed related welfare matters in accordance with regulations. The main employee benefit plans of the Company include meal subsidies, subsidies (vouchers) during festival seasons, Chinese New Year lottery, wedding/funeral subsidies, group insurance, health examination, discounts at designated stores, etc.

(2) Continuing education, training, and implementation status

To enhance the quality of employees and strengthen their work efficiency and quality, the Company provides guidance and training on job responsibilities for new employees. The Company also provides professional education and training to employees based on their job requirements from time to time, including both internal and external training. The education and training received by employees are recorded and managed, with a view to training professional talents and effectively utilizing talents.

(3) Retirement system and implementation status

The Company has established a "Supervisory Committee of Labor Retirement Fund" to safeguard the rights and interests of employees, protect employees' livelihood after retirement, and promote labor-management relations. The Company makes monthly contributions to the pension fund account with the Bank of Taiwan. In addition, since July 2005, in accordance with the Labor Pension Act, the Company has contributed labor pension funds to individual labor pension accounts at the Bureau of Labor Insurance for employees to protect employees' livelihood after retirement.

(4) Status of labor-management agreements and measures for preserving employees' rights and interests

The Company has established an internal control system for procedures governing salary and personnel-related matters, which serves as a common standard for the Company and employees. The Company also regularly conducts labor-management meetings to promote an exchange of opinions between labor and management. Employees are provided with channels for complaint and communication, employees' opinions are sufficiently taken into account, and employees' rights and interests are also reasonably protected.

4.5.2 Any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to labor disputes, and disclosing an estimate of possible expenses that could be incurred currently and, in the future, and measures being or to be taken: None.

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4.6 Cyber Security Management:

4.6.1 Cyber security risk management framework, cyber security policies, concrete management programs, and investments in resources for cyber security management

Cyber security risk management framework:
To implement the Company's cyber security measures and strengthen cyber security management across all departments, the "Cyber Security Committee" has been established in accordance with the cyber security policy.

(1) Responsibilities
- Formulate cyber security policies and cyber security control mechanisms.
- Supervise the implementation of cyber security policies.
- Establish corrective and preventive cyber security measures.
- Cyber security emergency response and crisis management.
- Implement cyber security education and training.

(2) Organizational structure

(3) Job responsibilities
- Cyber Security Committee: Responsible for decision-making and management review in matters related to the cyber security management system.
- Cyber Security Audit Team: Responsible for internal audits of cyber security-related operations.
- Cyber Security Emergency Response Team: Responsible for emergency response to cyber security incidents and crisis management, planning and implementation of disaster recovery drills.
- Cyber Security Operations Team: Responsible for security management of cyber operations and reporting major cyber security incidents to the Cyber Security Emergency Response Team for handling.

The "Personal Data Protection Management Committee" has been established in accordance with the Regulations Governing the Personal Data Protection Management to comply with the provisions of the Personal Data Protection Act (PDPA) and other regulations, and to implement matters such as personal data management, maintenance and execution to avoid infringement of the rights and interests of the interested party. The committee is convened by the General Manager, with other members including supervisors from departments such as the General Manager's Office, Legal Affairs Office, and Management Office.

Cyber Security Policy:
The "Cyber Security Policy" has been formulated as a guideline to strengthen cyber security management, ensuring the confidentiality, integrity, and reliability of the Company's information

assets. It provides an information environment for the continuous operation of the Company's cyber security business while meeting the requirements of relevant laws and regulations and preventing internal or external deliberate or accidental threats. The Cyber Security Team continues to promote cyber security management to ensure the effective operation of cyber security management mechanisms.

The new hires of the Company are required to sign a confidentiality agreement on their first day, and they can access information circulation-related regulations from the Company's public folder. Moreover, through continuous education, training, and advocacy, the Company enhances cybersecurity awareness among employees, integrating it into various operations to ensure the implementation of the most secure and stringent cybersecurity measures.

The "Regulations Governing the Personal Data Protection Management" have been formulated as guidelines for procedures such as the collection, processing, and use of personal data. The Personal Data Protection Management Committee is responsible for formulating, promoting, and managing the personal data protection policy to ensure compliance with laws and regulations, as well as the data security of the parties involved. The Company's use of personal data is limited to specific purposes, and no relevant complaints have been received in FY 2025.

3. Specific management plans:

The scope of cyber security protection of the Company includes employees, customers, and operation-related IT software and hardware equipment as well as its control includes the Internet, personal information appliances (e.g., desktops, laptops, notebook computers, tablets, etc.), the Company's SAP system/ERP system, the Company's website, etc.

To implement the Company's cyber security measures, the Company utilizes the following management programs:

(1) Establish a firewall to block viruses and hackers from attacking the Company's internal network.
(2) Install Trend Micro antivirus software on all computers and set up automatic updates to enhance user protection.
(3) Appoint the external vendor to manage the website's network status and continuously monitor abnormalities to prevent malicious attacks by hackers and ensure the normal operation of the network system.
(4) Access rights to the internal information system are assigned based on the user's position. Users are required by the system to change their passwords every 3 months, and the length and strength of the passwords are also regulated.
(5) Data confidentiality is classified, and important data requires transmission using keys and passwords.
(6) Implement regular backup and off-site storage of the Company's important information and conduct backup recovery and disaster drill operations every year.
(7) In FY 2025, the Company's IT Department conducted a total of 4 cyber security advocacy programs.
(8) The Company held a total of 2 cyber security review meetings in FY 2025.
(9) The Company conducts internal and external audits on cyber security measures: Internal: The IT Department conducts regular self-assessment and inspection of cyber security operations every year. The Audit Office includes cyber security inspection operations in the necessary audit items of the annual audit plan and regularly verifies the continued effectiveness of the design and implementation.

External: The CPAs from KPMG Taiwan conduct data audits every year.

(10) Regularly report to the Board of Directors on the implementation status of cyber security

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(including personal data protection) operations every year. The most recent report to the Board of Directors was on November 11, 2025.

The collection, processing, and use of personal data by each department of the Company are conducted in good faith, aligning with the specific and justifiable purposes of collection. To implement personal data protection within the Company, the Company utilizes the following management plan:

(1) Appoint dedicated personnel in each department who are responsible for handling tasks related to personal data protection.
(2) Each department establishes a list of personal data documents and conducts a personal data risk assessment. A personal data inventory is conducted once a year to implement risk control management.
(3) The Legal Affairs Office regularly organizes personal data protection related education and training, as well as advocacy on personal data protection to enhance the concept of personal data security maintenance.
(4) The Audit Office includes the operation of personal data protection management in the audit items of the annual audit plan and conducts regular checks.

Resource allocation for cyber security management:

(1) The company has established an Information Technology Department, comprising one Information Security Officer and two Information Security Specialists. Dedicated personnel are responsible for the management of software and hardware infrastructure, as well as the implementation and maintenance of network security protocols. Their responsibilities also include overseeing the company's website, monitoring web traffic, and ensuring robust cybersecurity measures. In 2023, the company launched a fully redesigned corporate website, enhancing user experience while significantly strengthening information security protections.
(2) The Company's system software and electronic sign-off system are maintained by external consultants through contractual agreements. These vendors provide services such as troubleshooting, version updates, consultation, etc.
(3) The Company has signed a firewall maintenance contract with an external vendor to provide maintenance and protection services.
(4) The Company implements off-site backup and off-site data retention mechanisms and regularly conducts disaster recovery drills.
(5) Company Information Asset Coverage:

Asset Category	Security Software Installation Rate (Note 1)	Real-time Monitoring Coverage (Note 2)
Servers	100 %	100 %
Terminal Equipment (e.g., Laptops, Desktops)	100 %	100 %
Cloud Databases (Note 3)	100 %	100 %

Note 1: "Security Software Installation Rate" refers to the percentage of equipment within a specific asset category that has been installed and maintains the effective operation of security protection programs (such as antivirus, anti-malware, content filtering, or endpoint protection) in accordance with the Company's information security policy.

Note 2: "Real-time Monitoring Coverage" refers to the percentage of equipment within a specific asset category that has implemented and enabled real-time monitoring mechanisms (such as security event monitoring, traffic anomaly analysis, or intrusion detection).

Note 3: The Company utilizes AWS cloud database services, employing a multi-layered security defense framework that monitors and protects across the network, identity, data, application, and monitoring layers:

Network Layer: Isolated using VPC (Virtual Private Cloud) with access strictly limited to specific IPs via Security Groups.

Identity Layer: Enabled IAM (Identity and Access Management) and Multi-Factor Authentication (MFA).

Data Layer: Enabled Encryption at Rest and Encryption in Transit (TLS/SSL).

Application Layer: Utilizes WAF to defend against SQL injection and performs source code scanning to eliminate vulnerabilities.

Monitoring Layer: Enabled database Audit Logs to monitor for abnormal data export or deletion activities.

(6) Education and training for FY 2025:

Trainee	Course Title	Training Institution	Number of Training Hours
Cyber Security Supervisor	Digital Risks of Emerging Technologies and AI	CGA (Corporate Governance Association in Taiwan)	3 hours
Cyber security personnel	Digital Risks of Emerging Technologies and AI	CGA (Corporate Governance Association in Taiwan)	3 hours

4.6.2 Losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to significant cyber security incidents, the possible impacts therefrom, and measures being or to be taken

The Company continues to strengthen its internal and external cyber security concepts and is successively establishing a cyber security incident reporting and response mechanism to ensure proper response, control, and handling of cyber security incidents. Under the efforts of all colleagues, no major cyber security incidents occurred in FY 2025 up to the publication date of the annual report, and no financial and operational losses were incurred due to cyber security incidents.

4.7 Important Contracts
April 10, 2026

Nature of the Contracts	Contracting Parties	Commencement and Expiration Dates	Major Content	Restrictive Clauses
Information service agreement	CiteAb Limited	2025.1.16~2026.1.15	Providing product literature information and related statistical services on the company website	None
Professional services agreement	KPMG Taiwan	2023.11.9~2025.9.30	Provide advice on corporate sustainability reports and GHG inventories	None
Distributor agreement	Bio- Connect	2025.12.29~2026.12.28	RNAutomation™ Benelux Distribution Agreement	None
Professional services agreement	Ever-Care Health Management Consulting Co., Ltd.	2025.1.1~2025.12.31	Workplace Health Service Agreement	None
Professional services agreement	Life Science Exhibits	2025.1.20~2025.4.9	Life Science Exhibits Campus Exhibition Participation Agreement	None
Professional services agreement	FedEx (Federal Express Corporation Taiwan Branch, Netherlands)	2025.12.10~2026.12.9	FedEx Shipping Service Agreement	None

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V. Review of Financial Conditions, Operating Results, and Risk Management

5.1 Analysis of Financial Status

Unit: NT$ 1,000; %

| Year
Item | 2024 | 2025 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | % |
| Current assets | 967,240 | 915,458 | (51,782) | (5.4%) |
| Property, plant and equipment | 252,207 | 242,235 | (9,972) | (4.0%) |
| Intangible Assets | 62,687 | 59,580 | (3,107) | (5.0%) |
| Other Assets | 118,914 | 109,962 | (8,952) | (7.5%) |
| Total assets | 1,401,048 | 1,327,235 | (73,813) | (5.3%) |
| Current Liabilities | 64,717 | 53,787 | (10,930) | (16.9%) |
| Long-term Liabilities | 0 | 0 | 0 | 0 |
| Other Liabilities | 26,931 | 16,953 | (9,978) | (37.1%) |
| Total Liabilities | 91,648 | 70,740 | (20,908) | (22.8%) |
| Share Capital | 605,536 | 605,536 | 0 | 0 |
| Capital surplus | 474,527 | 474,527 | 0 | 0 |
| Retained earnings | 236,929 | 181,513 | (55,416) | (23.4%) |
| Other Equity | (7,592) | (5,081) | 2,511 | 33.1% |
| Total Equity Attributable
to Shareholders | 1,309,400 | 1,256,495 | (52,905) | (4.0%) |
| Analysis of Deviation over 20%:
1. The 37.1% decrease in Other Liabilities was primarily due to the reduction in deferred tax liabilities and lease liabilities.
2. The 23.4% decrease in Retained Earnings was primarily due to the distribution of cash dividends and the net loss incurred during the current period.
3. The 33.1% decrease in Other Equity was primarily due to exchange differences on translation of financial statements of foreign operations. | | | | |

5.2 Analysis of Operation Results

5.2.1 Analysis of Financial Performance

Unit: NT$ 1,000

| Year
Item | 2024 | 2025 | Increase (Decrease)
Amount | Deviation (%) |
| --- | --- | --- | --- | --- |
| Sales Revenue | 356,411 | 352,270 | (4,141) | (1.16%) |
| Deduct: | | | | |
| Sales returns and allowances | (1,154) | (971) | 183 | 15.86% |
| Net Sales | 355,257 | 351,299 | (3,958) | (1.11%) |
| Operating Costs | (191,998) | (195,488) | (3,490) | (1.82%) |
| Gross Profit | 163,259 | 155,811 | (7,448) | (4.56%) |
| Operating Expenses | (128,989) | (138,760) | (9,771) | 7.58% |
| Operating Profit | 34,270 | 17,051 | (17,219) | (50.25%) |
| Non-operating Income and
Benefits | 39,242 | 10,776 | (28,466) | (72.54%) |
| Non-operating Expenses and
Losses | (323) | (29,856) | (29,533) | 9,143.34% |
| Profit Before Tax | 73,189 | (2,029) | (75,218) | (102.77%) |
| Deduct: | | | | |
| Income Tax (Expenses) Benefits | (11,582) | 888 | 12,470 | 107.67% |
| Profit After Tax | 61,607 | (1,141) | (62,748) | (101.85%) |
| Analysis of Deviation over 20% (Analysis is not required if the deviation does not exceed 20%):
1. The decrease in operating income was primarily due to the reduction in gross profit and the increase in operating expenses.
2. The decrease in non-operating income and gains was primarily due to the reduction in interest income and exchange gains.
3. The increase in non-operating expenses and losses was primarily due to the increase in exchange losses.
4. The decrease in income before income tax was primarily due to the aforementioned reasons.
5. The decrease in income tax expense was primarily due to the reduction in profit for the current period.
6. The decrease in net income was primarily due to the aforementioned reasons. | | | | |

5.2.2 Sales volume forecast and the basis therefor, and the effect upon the company's financial operations as well as measures to be taken in response

Please refer to the 4.2 Market and Sales Overview under Chapter IV. Operational Highlights described in this annual report.

5.3 Analysis of Cash Flow

5.3.1 Analysis of cash flow changes during the most recent fiscal year

| Year
Item | 2024 | 2025 | Deviation (%) |
| --- | --- | --- | --- |
| Cash Flow Ratio | 78.58 % | (7.79 %) | (109.92) |
| Cash Flow Adequacy Ratio | 428.18 % | 189.79 % | (55.68) |
| Cash Reinvestment Ratio | 0.52 % | (4.37 %) | (940.38) |
| Decrease in cash flow ratio: Mainly due to a decrease in net cash flow from operating activities.
Decrease in cash flow adequacy ratio: Mainly due to decrease in net cash flow from operating activities in the past five years.
Decrease in cash reinvestment ratio: Mainly due to decrease in net cash flow from operating activities. | | | |

5.3.2 Corrective measures to be taken in response to illiquidity: Not applicable.

5.3.3 Solvency analysis for the coming year

Unit: NT$ 1,000

Estimated Cash and Cash Equivalents at Beginning of Year A	Estimated Net Cash Flow from Operating Activities B	Estimated Cash Outflow C	Estimated Cash Surplus (Deficit) A + B - C	Estimated Remedy for Cash Deficit
				Investment Plan	Financial Plan
377,832	58,548	(15,797)	420,583	-	-
Analysis of cash flow
1. Operating activities: Mainly due to continued growth in the scale of operations in 2026 is expected and the net profit will increase, resulting in an increase in net cash flows from operating activities.
2. Investing activities: Mainly due to the acquisition of assets in response to operational needs in 2026.
3. Financing activities: Mainly due to cash dividends distribution is expected in 2026.

5.4 Effect upon financial operations of any major capital expenditure during the most recent fiscal year: None.

5.5 Reinvestment policy for the most recent fiscal year, the main reasons for the profits/loses generated thereby, the plan for improving re-investment profitability, and investment plans for the coming year

5.5.1 Reinvestment policy for the most recent fiscal year

The relevant executive departments comply with the Company's reinvestment policy in accordance with the internal control system, such as the "Investment Cycle" and "Handling Procedures for Acquisition or Disposal of Assets". The aforementioned regulations or procedures have been discussed and approved by the Board of Directors or shareholders' meeting.

Unit: NT$ 1,000

5.5.2 The main reasons for the profits/losses generated thereby, the plan for improving reinvestment profitability, and investment plans for the coming year

Description Item	Profit (Loss) Amount	Reinvestment Policy	Main Reasons for the Losses	Improvement Plan	Investment Plan for the Coming Year
Abnova GmbH	0	Distribution of biological products	Not applicable	December 31, 2016, is the effective date of dissolution, and the liquidation process has been filed and processed in accordance with the law	In the process of liquidation and cancellation
Abnova Holding Corporation	(4,164)	Investment business	Not applicable	None	In the process of liquidation and cancellation
Abnova (Cayman)Corporation	(3,822)	Investment business	Not applicable	Liquidation and cancellation completed on March 10, 2026	Liquidation and cancellation completed on March 10, 2026
Abnova Diagnostics (Japan)	(598)	R&D, production, sales and examination of medical device related products	Not applicable	Liquidation and cancellation completed on December 4, 2025	Liquidation and cancellation completed on December 4, 2025
AxleBio Ventures	(569)	Investment business	Investment company	None	None
Citil Pharma Incorporated	(1,359)	R&D of cell therapy technology	Mainly involves relevant the company being in the R&D stage	None	Depending on operational conditions

5.6. Risk analysis in the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report

5.6.1 Effect upon the company's profits (losses) of interest and exchange rate fluctuations and changes in the inflation rate, and response measures to be taken in the future

Interest rate: The Company is not affected by the interest rate as the Company has sufficient own funds and only have small short-term loans in line with banking relationships. In addition, the Company has established a long-standing and close relationship with the banks, so that the Company is able to obtain funds at a lower cost. In the future, the Company will take into account the amount and cost of various sources of funds in order to raise the necessary funds.
Exchange Rate:

A. The quotation for export sales of the Company is often denominated in US dollars or euros. The Company has opened foreign currency accounts to manage and sell foreign currency positions in a timely manner, with a view to minimizing the impact of exchange rate fluctuations. Moreover, the foreign currency generated from sales is used to pay foreign

140 -

currency payables, achieving a more flexible way of natural hedging, reducing the impact of exchange rate changes on the Company's profitability.

B. The Company has established "Handling Procedures for Acquisition or Disposal of Assets" to govern the procedures related to derivatives. In addition, necessary measures will be taken according to the situations of foreign currency positions and exchange rate fluctuations to minimize the foreign exchange risk derived from the operating activities of the Company.

Inflation: The Company's profits and losses have not been significantly affected by inflation. The main raw materials are purchased from suppliers at home and abroad, and the impact of inflation on the Company is minimized through supplier diversification.

5.6.2 The company's policy regarding high-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses generated thereby; and response measures to be taken in the future

The policy for loaning funds to others of the Company is formulated in accordance with the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees" of the Company. The Company provides loan funds to its subsidiaries, and the monetary amount of the loan of funds shall not exceed the maximum amount permitted as prescribed in the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees". Also, the Company's operations, finances, and future development are taken into consideration in providing loan funds to effectively control risks, and the permitted amount of loan funds will not adversely affect the financial position of the Company. At present, the Company does not engage in high-risk investments, highly leveraged investments, endorsements, guarantees, and derivatives transactions.

5.6.3 Research and development work to be carried out in the future, and further expenditures expected for research and development work

The existing sufficient and resourceful antibody database of the Company has been used to develop antibody reagents and applications for system integration. Also, the Company is actively developing diagnostic reagents and system instruments. For the Company's R&D plan in FY 2026, please refer to 3. Development of new products on page 107-110. An estimated R&D expenses for clinical trials and proprietary technology licensing of NT$ 38,189 thousand to be invested by the Company in FY 2026.

5.6.4 Effect on the company's financial operations of important policies adopted and changes in the legal environment at home and abroad, and measures to be taken in response

The Company's operations comply with the relevant domestic and foreign laws and regulations. The Company pays attention at all times to the domestic and foreign policy trend developments and regulatory changes, collecting relevant information, which will be served as a reference for management in adjusting relevant operational strategies of the Company. To date, the Company has not been affected by any important policies adopted or changes in the legal environment at home and abroad which will affect the financial operations of the Company.

5.6.5 Effect on the company's financial operations of developments in science and technology as well as industrial change (including cyber security risks), and measures to be taken in response 94

The major products of the Company have been widely accepted by customers, and the Company has also been actively enhancing its R&D capabilities and keeping track of industry trends and competitor information, as well as adopting a prudent financial management strategy to maintain its market competitiveness. In the future, the Company will continue to monitor relevant technological changes and evaluate their impact on the Company's operations, making corresponding adjustments to enhance the business development and financial position of the Company.

141 -

5.6.6 Effect on the company's financial operations of developments in science and technology (including cyber security risks) as well as industrial change, and measures to be taken in response

The Company has always adhered to the operating principles of honesty and professionalism and emphasized the corporate image. To date, there shall not have been any event affecting the corporate image of the Company.

5.6.7 Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken

There are no possible risks associated with any merger and acquisitions as the Company does not have any plans for mergers and acquisitions for the time being.

5.6.8 Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken

There are no possible risks associated with any plant expansion as the Company does not have any plans for plant expansion for the time being.

5.6.9 Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken

Procurement: The Company has diversified suppliers at home and abroad and has established good cooperative relationships with existing suppliers. To date, there are no risks associated with any consolidation of purchasing operations.

Sales: The Company has established good cooperative relationships with existing global and regional distributors and is actively increasing its customer base through direct sales via the Company website. To date, there are no risks associated with any consolidation of sales operations.

5.6.10 Effect upon and risk to the company in the event a major quantity of shares belonging to a director, supervisor, or shareholder holding greater than a 10 percent stake in the company has been transferred or has otherwise changed hands, and mitigation measures being or to be taken

The Company currently does not have any major shareholders holding greater than a 10 percent stake. In the event a major quantity of shares has been transferred or has otherwise changed hands, it may result in a re-election of directors due to insufficient shareholding or more than one half of the total number of shares that have been transferred. Therefore, in addition to strengthening the functions of directors, directors are occasionally reminded about the impact of changes in shareholding on the Company's operations.

5.6.11 Effect upon and risk to company associated with any change in governance personnel or top management, and mitigation measures being or to be taken

In the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, there is no change in governance personnel or top management.

5.6.12 Litigious and non-litigious matters

If there has been any material impact upon shareholders' equity or prices for the company's securities as a result of any litigation, non-litigious proceeding, or administrative dispute involving the company that was finalized or remained pending up to the publication of the annual report, the annual report shall disclose the facts in dispute, amount in dispute, commencement date, main parties involved, and current status of the case: None.

5.6.13 Other important risks, and mitigation measures being or to be taken

None.

5.7 Other important matters: None.

142 -

VI. Special Disclosure

6.1 Information of the Affiliates

6.1.1 Consolidated Business Report of the Affiliates

1. Overview of the Affiliates

(1) Organizational chart of the affiliates: (December 31, 2025)

(2) Basic Information of the Affiliates

December 31, 2025; Unit: NT$ 1,000

Company Name	Incorporation Date	Address	Paid-In Capital	Main Business or Items
Abnova -GmbH	2005.04.19	69126 Heidelberg, Boxbergring 107 c/o EMBL Technology Transfer GmbH	923	Distribution of biological products
Abnova Holding Corporation	2014.11.25	Portcullis TrustNet Chambers, P.O. Box 3444, Road Town, Tortola, British Virgin Islands	2,672	Investment business
Abnova (Cayman)Corporation	2014.11.28	The Grand Pavilion Commercial Centre, Oleander Way, 802 West Bay Road, P.O. Box 32052, Grand Cayman KY1-1208 Cayman Islands	629	Investment business
Abnova Diagnostics (Japan)	2016.01.15	15F, Toranomon Hills Business Tower, 1-17-1 Toranomon, Minato-ku, Tokyo	0	Liquidated and deregistered on December 4, 2025
AxleBio Ventures	2023.07.14	13F., No. 1-1, Sec. 5, Zhongxiao E. Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.)	1,300	Investment business
Citil Pharma Incorporated	2021.06.04	910 Foulk Road, Suite 201, New Castle Country, Wilmington DE 19803. U.S.A.	2,274	R&D of cell therapy technology

143 -

(3) Companies presumed to have a relationship of control and subordination under Article 369-3 of the Law: None.

(4) The industries covered by the business operated by the affiliates overall:
Please refer to the (2) Basic Information of the Affiliates.
Where connections exist among the businesses operated by individual affiliates, a description of the mutual dealings and division of work among such affiliates should be provided: None.

(5) Information on the directors, supervisors, and President of each affiliate:
December 31, 2025

Company Name	Title	Representative	Shareholding
			Shares	%
Abnova –GmbH	Responsible Person	Wilber Huang	(Note 1, 2)	100%
Abnova Holding Corporation	Director	Wilber Huang	1,700	100%
Citil Pharma Incorporated	Responsible Person	Wilber Huang	2,890,000	40%
Abnova (Cayman) Corporation	Director	Wilber Huang	20,000	100%
Abnova Diagnostics (Japan) (Note 3)	Representative Director	Wilber Huang	0	100%
AxleBio Ventures	Responsible Person	Wilber Huang	130,000	100%

Note 1: A subsidiary established in Germany, which is a limited liability company without issued shares.
Note 2: A subsidiary has no operating activities, therefore there is no managerial personnel.
Note 3: Liquidated and deregistered on December 4, 2025.

Overview of the Operations of the Affiliates
December 31, 2025; Unit: NT$ 1,000

Company Name	Paid-in Capital	Total Assets	Total Liabilities	Net Worth	Operating Profit	Net Income (After Tax)	Earnings Per Share (NT$) (After Tax)
Abnova -GmbH	923	0	(2,809)	(2,809)	0	0	0
Abnova Holding Corporation	2,672	12,233	(5,826)	6,407	(351)	(4,164)	(2,449)
Citil Pharma Incorporated	2,274	7,356	(8,411)	(1,055)	(1,359)	(1,359)	(0.19)
Abnova (Cayman) Corporation	629	5,842	0	5,842	(412)	(3,822)	(191.12)
Abnova Diagnostics (Japan) (Note)	0	0	0	0	(603)	(598)	(0.33)
AxleBio Ventures	1,300	855	(421)	434	(32)	(569)	(4.38)

Note: Liquidated and deregistered on December 4, 2025.

6.1.2 Consolidated Financial Statements of Affiliated Enterprises None.

6.3 Other matters that require additional description: None.

VII. If any of the situations listed in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None.

VIII. Appendix
Consolidated financial statements for the most recent fiscal year: Please refer to page 146

145 -

Representation Letter

The entities that are required to be included in the consolidated financial statements of Abnova (Taiwan) Corporation as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 by the Financial Supervisory Commission, "Consolidated Financial Statements." In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, Abnova (Taiwan) Corporation and Subsidiaries do not prepare a separate set of consolidated financial statements.

Company name: Abnova (Taiwan) Corporation
Chairman: WILBER HUANG
Date: February 25, 2026

Independent Auditors' Report

To the Board of Directors of Abnova (Taiwan) Corporation:

Opinion

We have audited the consolidated financial statements of Abnova (Taiwan) Corporation and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of Abnova (Taiwan) Corporation and its subsidiaries as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statement section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The key audit matters we judge that shall be communicated in the audit report are as follows:

Inventory valuation

Please refer to Note 4(8) “Inventories”; Note 5(1) “Significant accounting assumptions and judgments, and major sources of estimation uncertainty”, and Note 6(4) “Inventories”.

Description of key audit matter:

The major business of Abnova (Taiwan) Corporation is the manufacturing and sales of antibody, protein, test reagents and testing instruments. Inventories are measured at the lower of cost and net realizable value. Due to the longer life cycle of the products, the management considers factors such as product circulation, exposure, preservation and industry information to evaluate the net realizable value of inventories. As Abnova (Taiwan) Corporation has large amount of inventories and a large number of items, and the net realizable value used in the above-mentioned evaluation involves subjective judgment, the evaluation of loss allowance for inventory valuation has been listed as the key audit matter of the year.

~147~

Our principal audit procedures included:

The key audit procedures for the above-mentioned key audit matter based on the understanding of the industrial characteristics of Abnova (Taiwan) Corporation include obtaining statistical information on the sales time and sales status of the products on the shelves in each year provided by the management in the subsequent years to evaluate the rationality of the policy used to recognize the inventory valuation loss; understanding Abnova (Taiwan) Corporation’s inventory management process, reviewing the annual inventory plan and participating in the annual inventory check to evaluate the effectiveness of the management’s inventory control; obtaining the inventory net realizable value calculation sheet, and spot check the correctness of the calculation.

Other matter

Abnova (Taiwan) Corporation has prepared its parent-company-only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unqualified opinion.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IASs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with auditing standards, we exercise professional judgment and professional skepticism throughout the audit. We also:

A. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

~148~

B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group’s to cease to continue as a going concern.

E. Evaluate the overall presentation, structure and content of the consolidated financial reports, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

F. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

KPMG

Auditors :

Securities
: Financial-Supervisory-
Competent
Securities-Auditing-
Authority
1080303300
Approved-
Financial-Supervisory-
certified No.
Securities-Auditing-
1070304941

February 25, 2026

Abnova (Taiwan) Corporation and Subsidiaries
Consolidated Balance Sheets
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets:
1100	Cash and cash equivalents (Note 6(1))	$ 377,832	28	448,545	32
1170	Accounts receivable, net (Note 6(3) and 7)	50,305	4	43,066	3
1200	Other receivables	2,384	-	3,116	-
1220	Current tax assets (Note 6(11))	6,388	1	3,687	1
130X	Inventories (Note 6(4))	468,874	35	451,886	32
1479	Other current assets (Note 8)	9,675	1	16,940	1
	Total current assets	915,458	69	967,240	69
Non-current assets:
1517	Non-current financial assets measured at fair value through other comprehensive income (Note 6(2))	-	-	-	-
1550	Investments accounted for using equity method (Note 6(5))	-	-	64	-
1600	Property, plant and equipment (Note 6(6))	242,235	18	252,207	18
1755	Right-of-use assets (Note 6(7))	18,278	1	23,936	2
1780	Intangible assets (Note 6(8))	59,580	5	62,687	4
1840	Deferred tax assets (Note 6(11))	87,684	7	91,258	7
1900	Other non-current assets (Note 6(10) and 8)	4,000	-	3,656	-
	Total non-current assets	411,777	31	433,808	31

Total assets

$ 1,327,235 100 1,401,048 100

Liabilities and equity	December 31, 2025		December 31, 2024
	Amount	%	Amount	%
Current liabilities:
2130 Contract liability-current (Note 6(14))	$ 2,585	-	2,483	-
2170 Accounts payable	14,400	1	18,982	1
2200 Other payables	25,892	2	32,300	2
2280 Current lease liabilities (Note 6(9))	5,212	-	5,508	1
2300 Other current liabilities	5,698	1	5,444	-
Total current liabilities	53,787	4	64,717	4
Non-current liabilities:
2570 Deferred tax liabilities (Note 6(11))	2,942	-	8,006	1
2580 Non-current lease liabilities (Note 6(9))	13,287	1	18,498	1
2600 Other non-current liabilities (Note 6(5) and 7)	724	-	427	-
Total non-current liabilities	16,953	1	26,931	2
Total liabilities	70,740	5	91,648	6
Equity attributable to owners of parent (Note 6(12)) :
3110 Ordinary share	605,536	45	605,536	43
3200 Capital surplus	474,527	36	474,527	34
Retained earnings:
3310 Legal reserve	109,078	8	102,871	8
3320 Unappropriated retained earnings	7,592	1	12,199	1
3350 Special reserve	64,843	5	121,859	9
3400 Other equity interest	(5,081)	-	(7,592)	(1)
Total equity	1,256,495	95	1,309,400	94
Total liabilities and equity	$ 1,327,235	100	1,401,048	100

Chairman: WILBER HUANG

(See accompanying notes to financial statements.)

Manager: JIH PEI JU

Accounting supervisor: CHANG YA PING

Abnova (Taiwan) Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue (Note 6(14) and 7)	$ 351,299	100	355,257	100
5000	Operating costs (Note 6(4))	(195,488)	(56)	(191,998)	(54)
5900	Net gross profit	155,811	44	163,259	46
	Operating expenses:
6100	Marketing expenses	(47,828)	(13)	(42,220)	(12)
6200	Administrative expenses	(44,953)	(13)	(47,431)	(13)
6300	R&D expenses	(45,561)	(13)	(40,025)	(11)
6450	Gains on reversal of expected credit (loss) (Note 6(3))	(418)	-	687	-
	Total operating expenses	(138,760)	(39)	(128,989)	(36)
6900	Net operating income	17,051	5	34,270	10
	Non-operating income and expenses (Note 6(16)) :
7100	Interest income	10,757	3	17,315	5
7010	Other income	19	-	44	-
7020	Other gains and losses	(28,889)	(8)	21,883	6
7050	Finance cost	(424)	-	(118)	-
7060	Share of associates and joint ventures income accounted for using equity method (Note 6(5))	(543)	-	(205)	-
	Total non-operating income and expenses	(19,080)	(5)	38,919	11
7900	Profit (loss) from continuing operations before tax	(2,029)	-	73,189	21
7950	Tax expense (benefit) (Note 6(11))	(888)	-	11,582	3
8200	Profit (loss)	(1,141)	-	61,607	18
	Other comprehensive income:
8310	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Remeasurements of defined benefit plans (Note 6(10))	223	-	465	-
8349	Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-	-	-	-
	Components of other comprehensive income that will not be reclassified to profit or loss	223	-	465	-
8360	Components of other comprehensive income (loss) that may be reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements (Note 6(12))	2,511	1	4,607	1
8399	Less: Income tax related to components of other comprehensive income that may be reclassified to profit or loss	-	-	-	-
	Components of other comprehensive income (loss) that may be reclassified to profit or loss	2,511	1	4,607	1
8300	Other comprehensive income, net of tax	2,734	1	5,072	1
8500	Total comprehensive income	$ 1,593	1	66,679	19
	Earnings (losses) per share (NT dollars) (Note 6(13))
9750	Basic earnings (losses) per share (NT dollars)	$	(0.02)		1.02
9850	Diluted earnings (losses) per share (NT dollars)	$	(0.02)		1.02

(See accompanying notes to financial statements.)

Chairman: WILBER HUANG
Manager: JIH PEI JU
Accounting supervisor: CHANG YA PING

Abnova (Taiwan) Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Equity attributable to owners of parent
	Retained earnings					Other equity interest		Total equity
	Ordinary shares	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
Balance at January 1, 2024	$ 605,536	474,527	98,565	11,907	107,983	(7,254)	(4,945)	1,286,319
Profit	-	-	-	-	61,607	-	-	61,607
Other comprehensive income	-	-	-	-	465	4,607	-	5,072
Total comprehensive income	-	-	-	-	62,072	4,607	-	66,679
Appropriation and distribution of retained earnings:
Legal reserve	-	-	4,306	-	(4,306)	-	-	-
Special reserve	-	-	-	292	(292)	-	-	-
Cash dividends on ordinary shares	-	-	-	-	(43,598)	-	-	(43,598)
Balance at December 31, 2024	605,536	474,527	102,871	12,199	121,859	(2,647)	(4,945)	1,309,400
Loss	-	-	-	-	(1,141)	-	-	(1,141)
Other comprehensive income	-	-	-	-	223	2,511	-	2,734
Total comprehensive income	-	-	-	-	(918)	2,511	-	1,593
Appropriation and distribution of retained earnings:
Legal reserve	-	-	6,207	-	(6,207)	-	-	-
Reversal of special reserve	-	-	-	(4,607)	4,607	-	-	-
Cash dividends on ordinary shares	-	-	-	-	(54,498)	-	-	(54,498)
Balance at December 31, 2025	$ 605,536	474,527	109,078	7,592	64,843	(136)	(4,945)	1,256,495

(See accompanying notes to financial statements.)

Chairman: WILBER HUANG

Manager: JIH PEI JU

Accounting supervisor: CHANG YA PING

Abnova (Taiwan) Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from operating activities:
Profit (loss) before tax	$ (2,029)	73,189
Adjustments:
Adjustments to reconcile profit (loss)
Depreciation expenses	19,424	19,913
Amortization expenses	9,189	10,050
Expected credit losses (reversal gains)	418	(687)
Interest expense	424	118
Interest income	(10,757)	(17,315)
Share of associates and joint ventures losses accounted for using equity method	543	205
Losses on liquidation of subsidiaries	2,837	-
Total adjustments to reconcile profit (loss)	22,078	12,284
Changes in operating assets and liabilities:
Changes in operating assets:
Accounts and notes receivable	(7,657)	(2,456)
Other receivables	518	(166)
Inventories	(20,778)	(45,584)
Other current assets	7,082	217
Total changes in operating assets	(20,835)	(47,989)
Changes in operating liabilities:
Contract liabilities	102	134
Accounts payable	(4,582)	4,047
Other payables	(6,408)	(2,208)
Other current liabilities	254	(384)
Other liabilities	(192)	-
Total changes in operating liabilities	(10,826)	1,589
Total changes in operating assets and liabilities	(31,661)	(46,400)
Total adjustments	(9,583)	(34,116)
Cash inflow generated from (used in) operations	(11,612)	39,073
Interest received	11,109	17,329
Interest paid	(424)	(118)
Income taxes paid	(3,265)	(5,432)
Net cash flows from (used in) operating activities	(4,192)	50,852
Cash flows used in investing activities:
Acquisition of property, plant and equipment	(3,542)	(6,620)
Other receivables	-	27,597
Acquisition of intangible assets	(2,292)	(1,097)
Other financial assets	39	(11)
Other non-current assets	(423)	(81)
Other non-current liabilities	-	(11)
Net cash flows generated from (used in) investing activities	(6,218)	19,777
Cash flows from financing activities:
Repayment of lease principles	(5,508)	(5,494)
Cash dividends paid	(54,498)	(43,598)
Net cash flows from financing activities	(60,006)	(49,092)
Effect of exchange rate changes on cash and cash equivalents	(297)	3,493
Net increase (decrease) in cash and cash equivalents	(70,713)	25,030
Cash and cash equivalents at beginning of period	448,545	423,515
Cash and cash equivalents at end of period	$ 377,832	448,545

(See accompanying notes to financial statements.)

Chairman: WILBER HUANG
Manager: JIH PEI JU
Accounting supervisor: CHANG YA PING

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in thousands of New Taiwan Dollars, unless specified otherwise)

Company history

Abnova (Taiwan) Corporation (the “Company”) was legally established with the approval of the Ministry of Economic Affairs (R.O.C.) on January 4, 2002, with registered address at 9th Fl., No. 108, Jhouzih St., Neihu District, Taipei City, Taiwan (R.O.C.). The Company and its subsidiaries (the “Group”) has been actively developing, manufacturing, and selling monoclonal antibody, polyclonal antibody, proteins, medical inspection instruments and testing reagents, which are mainly antibody reagents, antibody chips or related products provided to and used by academic, research institutions or pharmaceutical factories, etc. Antibodies are the most important means for understanding proteins and their functions. The products of the Group help to study the relationship between protein changes in the process of cancer, infectious diseases, metabolism and endocrine diseases, and then apply to the development of medical inspection reagents and drugs.

Approval date and procedures of the consolidated financial statements

These consolidated financial statements were authorized for issue by the Board of Directors on February 25, 2026.

New standards, amendments and interpretations adopted

(1) The impact of the International Financial Reporting Standards (“IFRSs”) accounting standards endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2025.

·Amendments to IAS 21 “Lack of Exchangeability”

·Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding Application Guidance in Section 4.1 of IFRS 9 and regulations associated with disclosures of IFRS 7

(2) The impact of not yet adopting IFRS accounting standards endorsed by the FSC

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements.

·IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”

·Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding Application Guidance in Section 3.1 and 3.3 of IFRS 9 and regulations associated with disclosures of IFRS 7

·Annual Improvements to IFRS Accounting Standards

·Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(3) The impact of IFRS issued by IASB but not yet endorsed by the FSC

Standards and interpretations issued and amended by the IASB, but not yet endorsed by the FSC which may be relevant to the Group are as follows:

New or amended standards	Major amendments	Effective date by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.	January 1, 2027
Note: The FSC issued a press release on September 25, 2025 to declare that Taiwan will align with IFRS 18 since the fiscal year of 2028. Entities that require to apply in advance may elect to apply in advance after FSC’s endorsement.
	• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined “operating profit” subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.
• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS accounting standards.
• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

The Group continues to evaluate the impact of the aforementioned standards and interpretations on the financial position and financial performance; the relevant impact will be disclosed upon completion of the assessment.

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

The Group assesses that the adoption of the following other new or amended standards, not yet endorsed by the FSC, would not have a significant impact on its financial statements.

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and Amendments to IFRS 19
Amendments to IAS21 “The Effects of Changes in Foreign Exchange Rates”
Summary of significant accounting policies

The significant accounting policies presented in the consolidated financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the financial statements.

(1) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission, R.O.C.

(2) Basis of preparation

A. Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

(a) Financial assets at fair value through other comprehensive income are measured at fair value; and
(b) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in Note 4(16).

B. Functional and presentation currency

The functional currency of each entity of the Group is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan Dollars, which is the Group’s functional currency. All financial information presented in New Taiwan Dollars has been rounded to the nearest thousand.

(3) Basis of consolidation

A. Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. Except for Abnova GmbH, the German subsidiary which is not included in an entity of the Group’s consolidated financial report, the rest of the subsidiaries have been included. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances.

Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

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Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

B. List of subsidiaries in the consolidated financial statements
The consolidated entities were as follows:

Name of investor	Name of subsidiary	Main activities	Percentage of ownership		Note
			December 31, 2025	December 31, 2024
The Company	Abnova Holding Corporation	Investment business	100.00%	100.00%	Note 1
	AxleBio Ventures	Investment business	100.00%	100.00%
Abnova Holding Corporation	Abnova (Cayman) Corporation	Investment business	100.00%	100.00%
Abnova (Cayman) Corporation	Abnova Diagnostics (Japan)	R&D, manufacturing and sales of medical device, etc., testing services	- %	100.00%	Note 2

Note 1: Abnova Holding Corporation has refunded the payment for capital reduction amounting to NT$82,467 thousand (US$ 2,550 thousand) in June 2024, and completed the legal registration procedures.
Note 2: The liquidation procedures of Abnova Diagnostics (Japan) has been completed in December 2025.

C. Subsidiaries excluded from the consolidated financial statements:

Name of investor	Name of subsidiary	Main activities	Percentage of ownership		Note
			December 31, 2025	December 31, 2024
The Company	Abnova-GmbH	Distribution of biological products	100.00%	100.00%	Note

Note : Since Abnova GmbH's capital equivalent to NT$1,210 thousand (0.2% of the Group's capital), its total assets were less than 1% of the Group's total assets, and it had no operating income, the consolidated financial report with this subsidiary had not been prepared. The Board of Directors of the Company approved the dissolution and liquidation proposal of Abnova GmbH on November 11, 2016, and the dissolution and liquidation was on December 31, 2016, as the base date. As of December 31, 2025, the liquidation hasn't been completed.

(4) Foreign currency

A. Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Company entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(a) an investment in equity securities designated as at fair value through other comprehensive income;
(b) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
(c) qualifying cash flow hedges to the extent that the hedges are effective.

B. Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the New Taiwan Dollars at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the New Taiwan Dollars at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes only a part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes only a part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(5) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non-current:

A. It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
B. It is held primarily for the purpose of trading;
C. It is expected to be realized within twelve months after the reporting period; or
D. The asset is cash or cash equivalent (as defined in IAS7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non-current:

A. It is expected to be settled in the normal operating cycle;
B. It is held primarily for the purpose of trading;
C. The liability is due to be settled within twelve months after the reporting period; or
D. The Group does not have the right at the end of the reporting period to defer the settlement of the liability for at least twelve months after the reporting period.

(6) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

The periods of time deposits held by the Group are within one year from the date of acquisition, which are held for meeting short-term cash commitments, can be converted into a known amount of cash at any time, with only an insignificant risk of value changes. Therefore, time deposits are classified under cash and cash equivalents.

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Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(7) Financial instruments

Accounts receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is an accounts receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. An accounts receivable without a significant financing component is initially measured at the transaction price.

A. Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(a) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(b) Financial assets measured at fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established (usually the ex-dividend date).

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized costs, notes and accounts receivables, other receivable, guarantee deposit paid and other financial assets).

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

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Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

Debt securities that are determined to have low credit risk at the reporting date; and
Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for accounts receivables are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

Lifetime expected credit losses are the expected credit losses resulted from all the possible defaults occurring on the financial instrument during its expected life.

12-month expected credit losses are the expected credit losses resulted from all the possible defaults occurring on the financial instrument in the 12 months after the reporting date (or a shorter period if the expected life of a financial statement is less than 12 months).

The maximum period to consider when measuring expected credit losses is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

Significant financial difficulty of the borrower or issuer;
A breach of contract such as a default or being more than some time past due;
The lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
It is probable that the borrower will enter bankruptcy or other financial reorganization; or
The disappearance of an active market for that financial asset because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate accounts, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

(d) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of

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Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

B. Financial liabilities and equity instruments

(a) Classification of liabilities and equity

The Group shall classify the debt and equity instruments issued by the Group as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definition of a financial liability and an equity instrument.

(b) Equity transactions

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.

Equity instruments issued by the Group are recognized by the amounts equal to proceeds deducting direct issuing cost.

Financial liabilities are measured at amortized costs.

(d) Other financial assets are measured at amortized costs by effective interest rate method subsequently. The interest expenses and exchange gains or losses are recognized in profit or loss. Any gains or losses at derecognition are recognized in profit or loss as well.

(e) Derecognition of financial liabilities

The Group shall remove a financial liability from its statement of financial position when the obligation specified in the contract is discharged or cancelled or expires. A substantial modification of the terms of an existing financial liability and significant difference in cash flows after the modification shall be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability by fair value based on the modified contractual terms.

At derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed), shall be recognized in profit or loss.

(8) Inventories

A. The perpetual inventory system is adopted by the Group, and the acquisition costs are recorded in the account. The costs are determined by the weighted average method, and the fixed production overheads are allocated according to the normal operating capacity of the production equipment. Inventories at the end of period except for obsolete and slow-moving inventories are provided for loss allowance. Inventories are measured at the lower of cost and net realizable value. When comparing the lower of cost and net realizable value, the item-by-item comparison method is adopted. The market price of raw materials is the replacement cost (that is, the latest purchase price); the market price of work in progress, semi-finished goods, finished goods and commodity inventories is the net realizable value.

B. The provision basis of allowances for slow-moving inventories is explained as follows:

(a) Stocks of protein are provided for 100% of allowances for slow-moving inventories after the stock age reaches two years (entering the third year); for those with stock age within two years (excluded) are provided for 2% ~ 50% of allowances for slow-moving inventories.

(b) Stocks of testing instruments with stock age within two years (excluded) are provided for 1% ~ 3% of allowances for slow-moving inventories; for those with stock age reaching two years (entering the third year) ~ five years (excluded) are provided for 10% ~ 70% of allowances for slow-moving inventories; for those with stock age reaching five years (entering the sixth year) are provided for 100% of allowances for slow-moving inventories.

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(c) For stocks other than protein and testing instruments, those with stock age within four years (excluded) are provided for 0.1% ~ 20% of allowances for slow-moving inventories; for those with stock age reaching five years (entering the sixth year) ~ six years (excluded) are provided for 40% ~ 80% of allowances for slow-moving inventories; for those with stock age reaching six years (entering the seventh year) are provided for 100% of allowances for slow-moving inventories.

(9) Invest in associates

Associates are that in which the Group has significant influence over their financial and operating policies but is not controlling or jointly controlling.

The Group adopts the equity method to handle the interests of the associates. Under the equity method, the original acquisition is recognized at cost, and investment costs include transaction costs. The carrying amount of investments in an associate includes the goodwill identified at the time of the original investment, less any accumulated impairment loss.

The consolidated financial report includes from the date of significant influence to the date of loss of significant influence; after the adjustments made consistent with the accounting policy of the Group, the Group recognizes the profit and loss and the amount of other comprehensive income of each investment in associates based on the equity ratio. When the equity changes in non-profit or loss and other comprehensive income of an associate does not affect the shareholding ratio of the Group, the Group will recognize all changes in equity as capital reserves according to the shareholding ratio.

Unrealized gains and losses arising from transactions between the Group and associates are recognized in the corporate financial statements only within the scope of non-related party investors' interests in associates.

When the Group shall recognize the loss share of an associate proportionally equal to or exceeds its equity in the associate, it shall stop recognizing the losses, and only within the scope of a legal obligation, a constructive obligation, or a payment made on behalf of the invested company, additional losses and related liabilities shall be recognized.

(10) Property, plant and equipment

A. Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

B. Subsequent cost

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

C. Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

(a) Buildings and structures 9 to 50 years
(b) Machinery and equipment 3 to 16 years
(c) Office equipment 3 to 8 years
(d) Leasehold improvements 3 to 10 years
(e) Other equipment 1 to 7 years

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(11) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

A. As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

(a) fixed payments;
(b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(c) amounts expected to be payable under a residual value guarantee; and
(d) payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

(a) there is a change in future lease payments arising from the change in an index or rate;
(b) there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee;
(c) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset;
(d) there is a change of its assessment on whether it will exercise a purchase, extension or termination option;
(e) there is any lease modification.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets and lease liabilities that do not meet the definition of investment property as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for office equipment with short-term leases that have a lease term of 12 months or less and leases of low-value assets.

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Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(12) Intangible assets

A. Recognition and measurement

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible assets, including computer software, patent rights and customer relationships, are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

B. Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, is recognized in profit or loss as incurred, including internally developed goodwill and brands.

C. Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives of intangible assets for current and comparative periods are as follows:

(a) Royalty 5 to 30 years
(b) Intangible assets internally generated 3 years
(c) Customer relationships 3 years
(d) Computer software 5 to 10 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(13) Impairment of non-derivative financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

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Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(14) Revenue recognition

A. Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good to a customer. The description of main income items is as follows:

(a) Sales of goods

The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer upon the transaction terms, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

The Group offers volume discounts to customers. The Group recognizes revenue on the basis of the net amount of the contract price minus the estimated volume discount. The amount of the volume discount is estimated based on the expected value based on past cumulative experience, and revenue is recognized only in the range where there is a high probability that no significant reversal will occur.

(15) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables, which are the best estimate of the tax amount expected to be paid or received. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred income tax shall be recognized for the temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, except to the extent that:

A. the initial recognition of an asset or liability in a transaction which is not a business combination, and at the time of the transaction, (i) affects neither accounting profit (ii) nor taxable profit (tax loss) and (ii) does not give rise to equal taxable and deductible temporary differences, or
B. the temporary differences associated with investments in subsidiaries, and it is probable that the temporary differences will not reverse in the foreseeable future, or
C. the deferred tax liabilities arise from the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred income tax is measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates or tax laws that have been enacted or substantively enacted at the reporting date.

The Group shall offset current tax assets and current tax liabilities, only if:

A. the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and
B. the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

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Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(a) The same taxable entity; or
(b) Different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(16) Employee benefits

A. Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

B. Defined benefit plans

The Group’s net obligation in respect of each defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

C. Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(17) Earnings per share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(18) Segment information

The Group’s operating segments information is reported in a consistent manner with internal management reports provided to key operating decision makers. The chief operating decision maker is responsible for allocating resources to operating segments and assessing their performance.

~166~

~167~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial report requires management to make judgments, estimates, and assumptions to future (including climate-related risks and opportunities) that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions to be in consistent with the Group's risk management and climate-related commitments. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period on a prospective basis.

Accounting policies involve critical judgments and have no significant impact on the amount recognized in this consolidated financial statements.

Information about uncertainties of the following assumptions and estimates which have significant risks of causing critical adjustments to the carrying amount of assets and liabilities in the next fiscal year is as follows:

(1) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Group estimates the net realizable value of inventories for normal loss and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. In addition, the Group has also considered the industry characteristics and the liquidity of inventories to assess the loss allowance for slow-moving inventories. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. Due to the changes in industrial application technology, there may be significant changes in the net realizable value of inventories.

Explanation of significant accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash	$ 331	489
Checking account	515	515
Demand deposits	118,977	161,653
Time deposits	258,009	285,888
Cash and cash equivalents listed in the consolidated statements of cash flows	$ 377,832	448,545

Please refer to Note 6(17) for the interest rate risk, and sensitivity analysis of the financial assets and liabilities.

(2) Financial assets measured at fair value through other comprehensive income

	December 31, 2025	December 31, 2024
Equity instruments measured at fair value through other comprehensive income:
Foreign non-listed (non-OTC-listed) stocks — Hukui Biotechnology Corporation (Samoa)	$ -	-

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

A. Investments in equity instruments measured at fair value through other comprehensive income

The Group designated the investment shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategic purpose.

Please refer to Note 6(17) for information on the carrying amount, fair value and market risks of the foreign non-listed (non-OTC-listed) stocks of Hukui Biotechnology Corporation (Samoa) held by the Group.

As the Group did not dispose any strategic investments for the years ended December 31, 2025 and 2024, the accumulated gains and losses were not transferred within equity during the period.

B. The aforementioned financial assets were not pledged as collateral.

(3) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 55,283	47,626
Less: Loss allowance	(4,978)	(4,560)
	$ 50,305	43,066

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward-looking information.

The loss allowance provisions for notes and accounts receivable were determined as follows:

	December 31, 2025
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current and less than 30 days past due	$ 46,051	1.49%	685
31 to 60 days past due	4,559	23.62%	1,077
61 to 90 days past due	1,812	41.01%	743
91 to 120 days past due	514	61.22%	315
121 to 180 days past due	289	68.43%	198
181 to 365 days past due	661	85.18%	563
More than 365 days past due	1,397	100.00%	1,397
	$ 55,283		4,978

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

	December 31, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current and less than 30 days past due	$ 40,072	1.87%	751
31 to 60 days past due	2,857	24.05%	687
61 to 90 days past due	1,412	39.22%	554
91 to 120 days past due	741	55.95%	415
121 to 180 days past due	776	58.84%	457
181 to 365 days past due	306	76.44%	234
More than 365 days past due	1,462	100.00%	1,462
	$ 47,626		4,560

The movement in the loss allowance for notes and accounts receivable were as follows:

	2025	2024
Balance at January 1	$ 4,560	5,247
Recognition of impairment losses (reversal gains)	418	(687)
Balance at December 31	$ 4,978	4,560

The aforementioned financial assets were not pledged as long-term loans and financing facilities.

(4) Inventories

	December 31, 2025	December 31, 2024
Raw materials and supplies	$ 22,773	31,505
Semi-finished goods	311,807	257,884
Work in progress	3,582	34,414
Finished goods	125,412	121,953
Merchandise	5,102	6,107
Testing instruments	198	23
	$ 468,874	451,886

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

The components of cost of sales for the years ended December 31, 2025 and 2024 are as follows:

	2025	2024
Sales of inventories transferred	$ 153,739	151,320
Inventory disposal loss	59,959	60,048
Inventory valuation loss (reversal gain)	(18,210)	(19,370)
Total	$ 195,488	191,998

As of December 31, 2025 and 2024, the inventories were not pledged as collateral.

(5) Investments accounted for using equity method

The equity method adopted by the Group at the reporting date was as follows:

	December 31, 2025	December 31, 2024
Subsidiary
Abnova GmbH (Note)	$ (2,809)	(2,809)
Associate
Citil Pharma Incorporated	$ (489)	64

Note : The net amount deducted from receivables as of December 31, 2025 and 2024 were listed in “other non-current liabilities.” Please refer to Note 7.

Since Abnova GmbH’s capital equivalent to NT$1,210 thousand (0.2% of the Group’s capital), its total assets were less than 1% of the Group’s total assets, and it had no operating income, the consolidated financial report with this subsidiary had not been prepared.

The Company sold the shares of the associate, Citil Pharma Incorporated, by NT$342 thousand to the subsidiary, AxleBio Ventures. As the transaction is the restructure under joint control, the unrealized gains on disposal of NT$68 thousand is recognized as the deduction of investments accounted for using equity method.

As of December 31, 2025 and 2024, the investment adopting equity method were not pledged as collateral.

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(6) Property, plant and equipment

The details of changes in the cost and depreciation of property, plant and equipment for the years ended December 31, 2025 and 2024 are as follows:

	Land	Buildings and structures	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Unfinished construction and equipment pending acceptance	Total
Cost or deemed cost:
Balance at January 1, 2025	$ 137,911	101,747	182,115	26,768	18,540	8,778	200	476,059
Additions	-	-	2,578	-	139	278	547	3,542
Reclassifications	-	-	252	-	-	-	-	252
Disposals	-	-	(2,007)	(1,283)	-	-	-	(3,290)
Effects of changes in foreign exchange rates	-	-	(7)	(4)	-	-	-	(11)
Balance at December 31, 2025	$ 137,911	101,747	182,931	25,481	18,679	9,056	747	476,552
Balance at January 1, 2024	$ 137,911	101,747	184,800	26,172	18,366	8,642	225	477,863
Additions	-	-	5,435	640	149	396	-	6,620
Reclassifications	-	-	2,133	-	25	-	(25)	2,133
Disposals	-	-	(10,194)	(10)	-	(260)	-	(10,464)
Effects of changes in foreign exchange rates	-	-	(59)	(34)	-	-	-	(93)
Balance at December 31, 2024	$ 137,911	101,747	182,115	26,768	18,540	8,778	200	476,059
Depreciation and impairment loss:
Balance at January 1, 2025	$ -	41,796	135,176	26,057	12,647	8,176	-	223,852
Depreciation	-	5,997	6,428	230	825	286	-	13,766
Disposals	-	-	(2,007)	(1,283)	-	-	-	(3,290)
Effects of changes in foreign exchange rates	-	-	(7)	(4)	-	-	-	(11)
Balance at December 31, 2025	$ -	47,793	139,590	25,000	13,472	8,462	-	234,317
Balance at January 1, 2024	$ -	35,799	138,257	25,891	11,833	8,220	-	220,000
Depreciation	-	5,997	7,171	208	814	216	-	14,406
Disposals	-	-	(10,194)	(10)	-	(260)	-	(10,464)
Effects of changes in foreign exchange rates	-	-	(58)	(32)	-	-	-	(90)
Balance at December 31, 2024	$ -	41,796	135,176	26,057	12,647	8,176	-	223,852
Carrying amount:
December 31, 2025	$ 137,911	53,954	43,341	481	5,207	594	747	242,235
January 1, 2024	$ 137,911	65,948	46,543	281	6,533	422	225	257,863
December 31, 2024	$ 137,911	59,951	46,939	711	5,893	602	200	252,207

As of December 31, 2025 and 2024, the property, plant and equipment were not pledged as collateral.

~171~

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(7) Right-of-use assets

The details of changes in the cost and depreciation of leased buildings and structures, and transportation equipment, etc. of the Group for the years ended December 31, 2025 and 2024 are as follows:

	Buildings and structures	Transportation equipment	Total
Cost:
Balance at December 31, 2025 (the same as the beginning balance)	$ 29,469	2,350	31,819
Balance at January 1, 2024	$ 41,650	2,954	44,604
Additions	20,846	948	21,794
Disposals	(33,027)	(1,552)	(34,579)
Balance at December 31, 2024	$ 29,469	2,350	31,819
Depreciation and impairment loss:
Balance at January 1, 2025	$ 6,086	1,797	7,883
Depreciation	5,184	474	5,658
Balance at December 31, 2025	$ 11,270	2,271	13,541
Balance at January 1, 2024	$ 34,078	2,877	36,955
Depreciation	5,035	472	5,507
Disposals	(33,027)	(1,552)	(34,579)
Balance at December 31, 2024	$ 6,086	1,797	7,883
Carrying amount:
December 31, 2025	$ 18,199	79	18,278
January 1, 2024	$ 7,572	77	7,649
December 31, 2024	$ 23,383	553	23,936

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

(8) Intangible assets

The details of changes in the cost and amortization of intangible assets of the Group for the years ended December 31, 2025 and 2024 were as follows:

	Development expenditure of monoclonal antibody hybridoma	Royalty	Other	Total
Cost:
Balance at January 1, 2025	$ 325,044	75,616	7,803	408,463
Separately acquired	-	-	312	312
Internally developed	1,980	-	-	1,980
Inventories transferred to	3,790	-	-	3,790
intangible assets
Balance at December 31, 2025	$ 330,814	75,616	8,115	414,545
Balance at January 1, 2024	$ 321,979	75,616	7,771	405,366
Separately acquired	-	-	32	32
Internally developed	1,065	-	-	1,065
Inventories transferred to	2,000	-	-	2,000
intangible assets
Balance at December 31, 2024	$ 325,044	75,616	7,803	408,463
Amortization and impairment loss:
Balance at January 1, 2025	$ 318,373	26,226	1,177	345,776
Amortization	5,785	2,409	995	9,189
Balance at December 31, 2025	$ 324,158	28,635	2,172	354,965
Balance at January 1, 2024	$ 311,710	23,818	198	335,726
Amortization	6,663	2,408	979	10,050
Balance at December 31, 2024	$ 318,373	26,226	1,177	345,776
Carrying amount:
Balance at December 31, 2025	$ 6,656	46,981	5,943	59,580
January 1, 2024	$ 10,269	51,798	7,573	69,640
Balance at December 31, 2024	$ 6,671	49,390	6,626	62,687

The amortization expenses of intangible assets for the years ended December 31, 2025 and 2024 were presented in the following items in the consolidated statements of comprehensive income:

	2025	2024
Operating costs	$ 5,785	6,662
Operating expenses	3,404	3,388
	$ 9,189	10,050

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(9) Lease liabilities

The carrying amount of lease liabilities were as follows:

	December 31, 2025	December 31, 2024
Current	$ 5,212	5,508
Non-current	$ 13,287	18,498

For the maturity analysis, please refer to Note 6(17) Financial instruments.

The amount recognized in profit or loss were as follows:

	2025	2024
Interest on lease liabilities	$ 424	118
Expenses relating to short-term leases	$ 3,574	3,326

The amount recognized in the statements of cash flows for the Group were as follows:

	2025	2024
Total cash outflow for leases	$ 9,506	8,938

A. Buildings and structures leases

The Group leases buildings and structures for its office space and factories for the year ended December 31, 2025, which typically run for a period of one to five years.

B. Other leases

The Group leases transportation equipment with contract terms of two years.

In addition, the Company leases copy machines with contract terms of five years. As these leases are short-term and/or of low-value, the Company elects the recognition exemption and does not recognize the relevant right-of-use assets and lease liabilities.

(10) Employee benefits

A. Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value were as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 5,425	5,075
Fair value of plan assets	(6,997)	(6,402)
Net defined benefit assets	$ (1,572)	(1,327)

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle retired employees to receive retirement benefits based on their years of service and average monthly salary for the six months prior to retirement.

The Company received the approval letters from the Department of Labor, Taipei City Government No. 1126041943, No. 1136038957, and No. 1146032880 on August 29, 2023, August 5, 2024, and August 7, 2025, respectively which approved to suspend the appropriation of pension fund from September 2023 to August 2024, from September

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

2024 to August 2025, and from September 2025 to August 2026.

(a) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company’s Bank of Taiwan labor pension reserve account balance amounted to NT$6,997 thousand as of the reporting date. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(b) Movements in present value of defined benefit obligations

The movement in the present value of the defined benefit obligations for the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
Defined benefit obligations at January 1	$ 5,075	5,609
Current service cost and interest cost	87	73
Remeasurements of net defined benefit obligations
—Actuarial gains and losses arising from experience adjustments	85	409
—Actuarial gains and losses arising from changes in financial assumptions	178	(251)
Benefits paid	-	(765)
Defined benefit obligations at December 31	$ 5,425	5,075

The movements in the fair value of the plan assets for the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
Fair value of plan assets at January 1	$ (6,402)	(6,460)
Interest income	(109)	(84)
Remeasurements of net defined benefit obligations
—Return on plan assets excluding interest income	(486)	(623)
Benefits paid	-	765
Fair value of plan assets at December 31	$ (6,997)	(6,402)

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(d) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
Net interest of net defined benefit liabilities (assets)	$ (22)	(11)
Operating costs	$ (17)	(8)
Operating expenses	(5)	(3)
	$ (22)	(11)

(e) Actuarial assumptions

The principal actuarial assumptions for determining present value of defined benefit obligations at the reporting date were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.40%	1.70%
Future salary increase rate	3.00%	3.00%

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date of the year ended December 31, 2025 is $0.

The weighted average lifetime of the defined benefit plans was 12 years.

(f) Sensitivity analysis

When calculating the present value of defined benefit obligations, the Company must practice judgments and estimates to determine relevant actuarial assumptions at the balance sheets date, including discount rates and future salary changes. Any changes in actuarial assumptions may cause significant impacts on the amount of defined benefit obligations.

As of December 31, 2025 and 2024, if the actuarial assumptions had changed, the impact on the present value of the defined benefit obligations shall be as follows:

	Influences of defined benefit obligations
	Increase0.25%	Decrease0.25%
December 31, 2025
Discount rate	(149)	153
Future salary increases rate	137	(134)
December 31, 2024
Discount rate	(150)	155
Future salary increases rate	140	(136)

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Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions remain constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis was consistent with the calculation of net defined benefit liabilities in the balance sheets.

There were no changes in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

B. Defined contribution plans

The Group allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to NT$3,478 thousand and NT$3,521 thousand for the years ended December 31, 2025 and 2024, respectively.

(11) Income taxes

A. Tax expense (benefit)

The components of the income tax in the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
Current tax expense (benefit)
Current period	$ 740	3,343
Adjustment for prior periods	(138)	-
	602	3,343
Deferred tax expense (benefit)
Origination and reversal of temporary differences	(1,490)	8,239
	$ (888)	11,582

The reconciliation of income tax expenses with profit (loss) before tax for the years ended December 31, 2025 and 2024 was as below:

	2025	2024
Profit (loss) before tax	$ (2,029)	73,189
Income tax using the Company’s domestic tax rate	$ (406)	14,638
Tax effect in foreign jurisdiction	15	31
Nondeductible expenses	63	81
Tax incentive	(721)	(3,168)
Overestimation for prior periods	(138)	-
Surtax on undistributed earnings of the prior year	299	-
Tax expense	$ (888)	11,582

B. Deferred tax assets and liabilities

Changes in the amount of deferred tax assets for the years ended December 31, 2025 and 2024 were as follows:

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

	Allowance for inventory valuation and obsolescence	Gains on long-term equity investments accounted for using equity method	Total
Deferred tax liabilities:
Balance at January 1, 2025	$ 5,669	2,337	8,006
Recognized in profit or loss	(4,248)	(816)	(5,064)
Balance at December 31, 2025	$ 1,421	1,521	2,942
Balance at January 1, 2024	$ 1,376	2,407	3,783
Recognized in profit or loss	4,293	(70)	4,223
Balance at December 31, 2024	$ 5,669	2,337	8,006
	Allowance for inventory valuation and obsolescence	Other	Total
Deferred tax assets:
Balance at January 1, 2025	$ 89,414	1,844	91,258
Recognized in profit or loss	(3,642)	68	(3,574)
Balance at December 31, 2025	$ 85,772	1,912	87,684
Balance at January 1, 2024	$ 93,288	1,986	95,274
Recognized in profit or loss	(3,874)	(142)	(4,016)
Balance at December 31, 2024	$ 89,414	1,844	91,258

C. Assessment of tax
The Company’s tax returns for the years through 2023 were assessed by the National Taiwan Bureau.

(13) Capital and other equity

A. Ordinary shares
The Company had authorized capital of NT$800,000 thousand (80,000 thousand shares) as of December 31, 2025 and 2024, of which 60,554 thousand shares with par value of NT$10 were issued. Payments for all issued shares had been received.

~179~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. Capital surplus

The balances of capital surplus were as follows:

	December 31, 2025	December 31, 2024
Share premium	$ 474,527	474,527

According to the R.O.C. Group Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

C. Retained earnings

The Company’s article of incorporation stipulates that any Company’s profit for the period should first be used to offset the prior years’ deficits (including the adjustments of the unappropriated retained earnings), allocate 10% of the remaining balance as legal reserve, unless such legal reserve has amounted to the paid-in capital, then set aside or reverse a special reserve in accordance with the laws and regulations or competent authorities. The remainder, if any, together with any undistributed retained earnings (including the adjustments of the unappropriated retained earnings) should be proposed earnings distribution by the Company’s Board of Directors. Wherein the distributable dividend and bonus may be paid by cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and in addition thereto, a report of such distribution shall be submitted to the shareholders’ meeting. Wherein the distributable dividend and bonus may be paid by issuing new shares after a resolution has been adopted in the shareholders’ meeting.

The dividend distribution policy of the Company is to coordinate with the current and future development plans, consider the investment environment, capital needs, and domestic and foreign competition conditions, and take into consideration factors such as shareholders’ interests. The dividends and bonus to shareholders each year shall not be less than 10% of the distributable earnings, but when the accumulated distributable earnings are lower than 3% of the paid-in capital, the distribution may not be done. When distributing dividends and bonus to shareholders, it can be done in the form of cash or stocks, and the cash dividends should not be less than 10% of the total dividends.

(a) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

(b) Special reserve

According to the laws and regulations, special earnings shall be set aside from the net reduction of other shareholders’ equity in current-period balance sheets during earnings distribution. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

The amount of cash dividends on the appropriations of earnings for 2024 and 2023 had been approved during the board meetings on February 26, 2025 and February 20, 2024, respectively. The relevant dividend distributions to shareholders were as follows:

	2024		2023
	Amount per share	Amount	Amount per share	Amount
Dividends distributed to ordinary shareholders:
Cash	$ 0.90	54,498	0.72	43,598

The amount of dividends on the appropriation of earnings for 2025 is proposed to be approved by the board meetings on February 26, 2026. The distribution to shareholders was as follows:

	2025
	Amount per share	Amount
Dividends distributed to ordinary shareholders
Cash	$ 0.112	6,782

D. Other equity interest

	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total
Balance at January 1, 2025	$ (2,647)	(4,945)	(7,592)
Exchange differences on foreign operations	2,511	-	2,511
Balance at December 31, 2025	$ (136)	(4,945)	(5,081)
Balance at January 1, 2024	$ (7,254)	(4,945)	(12,199)
Exchange differences on foreign operations	4,607	-	4,607
Balance at December 31, 2024	$ (2,647)	(4,945)	(7,592)

(13) Earnings (losses) per share

A. Basic earnings (losses) per share

The basic earnings (losses) per share of the Group in 2025 and 2024 were calculated based on the net profit attributable to the ordinary shareholders of the Company according to the weighted average number of ordinary shares outstanding. The calculations were as follows:

(a) Profit (loss) attributable to ordinary shareholders of the Company

	2025	2024
Profit (loss) attributable to ordinary shareholders of the Company	$ (1,141)	61,607

~180~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(b) Weighted average number of ordinary shares (in thousands)

	2025	2024
Weighted average number of ordinary shares at December 31 (in thousands) (the number of shares at January 1)	60,554	60,554

B. Diluted earnings (losses) per share

The diluted earnings (losses) per share in 2025 and 2024 were calculated based on the net profit attributable to the ordinary shareholders of the Company according to the weighted average number of ordinary shares outstanding after all potential ordinary shares adjusted to be diluted. The calculations were as follows:

(a) Profit (loss) attributable to ordinary shareholders of the Company (diluted)

	2025	2024
Profit (loss) attributable to ordinary shareholders of the Company (diluted)	$ (1,141)	61,607

(b) Weighted average number of ordinary shares (diluted) (in thousands)

	2025	2024
Weighted average number of ordinary shares (basic)	60,554	60,554
Effect of employee share bonus	-	118
Weighted average number of ordinary shares at December 31 (diluted)	60,554	60,672

(14) Revenue from contracts with customers

A. Details of revenue

	2025	2024
Primary geographical markets:
America	$ 170,090	183,229
Europe	90,189	84,043
Taiwan	11,351	15,232
Other country	79,669	72,753
	$ 351,299	355,257
Main product/service line:
Monoclonal antibody	$ 116,822	120,247
Antibody Pair	69,553	70,998
Protein	45,597	51,681
Polyclonal antibody	22,868	22,471
Testing instruments	5,575	5,831
Other	90,884	84,029
	$ 351,299	355,257

~182~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

B. Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and accounts receivable	$ 55,283	47,626	45,170
Less: Loss allowance	(4,978)	(4,560)	(5,427)
Total	$ 50,305	43,066	39,743
Contract liabilities	$ 2,585	2,483	2,349

For details on accounts receivable and its loss allowance, please refer to note 6(3).

The balance of contract liabilities at January 1, 2025 and 2024 recognized as revenue for the years 2025 and 2024 were NT$279 thousand and NT$360 thousand, respectively.

(15) Remuneration to employees and directors

The Company modified the Articles of Incorporation by the resolution of the shareholders meeting on May 29, 2025. In accordance with the modified Articles of Incorporation, the Company should contribute 1% of the profit as employee compensation (in the amount of employee compensation, the compensation to the non-executive employees shall not be lower than 0.5%.) and no more than 3% as directors’ and supervisors’ remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The recipients of shares and cash may include the employees of the Company’s affiliated companies who meet certain conditions. In accordance with the Articles of Incorporation before modification, the Company should contribute no less than 1% of the profit as employee compensation and no more than 3% as directors’ and supervisors’ remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The recipients of shares and cash may include the employees of the Company’s affiliated companies who meet certain conditions.

For the years ended December 31, 2025 and 2024, the Company recognized its employee remuneration amounting to NT$0 thousand and NT$3,235 thousand respectively; as well as its remuneration to directors and supervisors amounting to NT$0 thousand and NT$616 thousand, respectively. These amounts were calculated by using the Company’s pre-tax net profit for the period before deducting the amounts of the remuneration to employees and directors, multiplied by the distribution of ratio of the remuneration to employees and directors based on the Company’s articles of incorporation, and expensed under operating costs or expenses. If any discrepancy occurred between the actual distributions and the accrued amount for the following year, it shall be treated as a change in accounting estimates, and the difference shall be recognized as profit or loss for the next year. Related information would be available at the Market Observation Post System website.

The amounts, as stated in the financial statements are identical to those of the actual distributions for 2025 and 2024.

~183~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(16) Non-operating income and expenses

A. Interest income

The details of interest income were as follows:

Interest income from bank deposits

2025	2024
$ 10,757	17,315

B. Other income

The details of other income were as follows:

Other income

2025	2024
$ 19	44

C. Other gains and losses

The details of other gains and losses were as follows:

Losses on liquidation of subsidiaries
Foreign exchange gains (losses)
Miscellaneous revenue (expenses)

2025	2024
(2,827)	-
$ (21,314)	21,782
(4,748)	101
$ (28,889)	21,883

D. Finance cost

The details of finance cost were as follows:

Other finance expense

2025	2024
$ 424	118

(17) Financial instruments

A. Credit risk

(a) Credit risk exposure

The carrying amount of financial assets represents the maximum amount exposed to credit risk.

(b) Concentration of credit risk

Except for the biggest customers, the Company has no significant credit risk exposure to any single counterparty or any group of counterparties with similar characteristics. As of December 31, 2025 and 2024, 11% and 8%, respectively, of accounts receivable were concentrated on the biggest customer, and 89% and 92%, respectively, of accounts receivable were concentrated on other counterparties' transactions.

For credit risk exposure of notes and accounts receivable, please refer to Note 6(3).

Other financial assets measured at amortized cost, including other receivables are with low credit risk and which loss allowance for the period is measured by the twelve-month expected credit loss amount. As of December 31, 2025, the Group had no impairment on other receivables.

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

B. Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

	Carrying amount	Contractual cash flow	Within 1 year	1 to 2 years	2 to 5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities
Accounts payable	$ 14,400	14,400	14,400	-	-	-
Other payables	25,892	25,892	25,892	-	-	-
Lease liabilities	18,499	19,189	5,525	4,910	8,754	-
	$ 58,791	59,481	45,817	4,910	8,754	-
December 31, 2024
Non-derivative financial liabilities
Accounts payable	$ 18,982	18,982	18,982	-	-	-
Other payables	32,300	32,300	32,300	-	-	-
Lease liabilities	24,006	25,120	5,932	5,524	13,664	-
	$ 75,288	76,402	57,214	5,524	13,664	-

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

C. Currency risk

(a) Exposure to foreign currency risk

The Group’s significant exposure to foreign currency risk was as follows:

December 31, 2025

	Foreign currency (in thousands)	Exchange rate	New Taiwan Dollars
Financial assets
Monetary items
USD	$ 9,463 USD : TWD	31.43	297,432
EUR	312 EUR : TWD	36.90	11,519
GBP	137 GBP : TWD	42.33	5,792
Financial liabilities
Monetary items
USD	396 USD : TWD	31.43	12,461
EUR	94 EUR : TWD	36.90	3,463

December 31, 2024

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

	Foreign currency (in thousands)	Exchange rate	New Taiwan Dollars
Financial assets
Monetary items
USD	$ 10,974 USD : TWD	32.785	359,788
EUR	318 EUR : TWD	34.14	10,840
GBP	111 GBP : TWD	41.19	4,565
JPY	8,292 JPY : TWD	0.2099	1,741
Financial liabilities
Monetary items
USD	372 USD : TWD	32.785	12,201
EUR	89 EUR : TWD	34.14	3,033

(b) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the conversion of the foreign currency exchange gains and losses on cash and cash equivalents, accounts and other receivables, financial assets measured at fair value through other comprehensive income and accounts and other payables that are denominated in foreign currency. A strengthening (weakening) of 1% of the NTD against the USD, EUR and JPY as of December 31, 2025 and 2024 would have increased (decreased) the net profit after tax by NT$2,391 thousand and NT$2,894 thousand, respectively. The analysis for the two periods was on the same basis.

Since the Group transacts in different functional currencies, the information on foreign exchange gains (losses) on monetary items is disclosed by total amount. For the years ended December 31, 2025 and 2024, the foreign exchange gains (losses) (including realized and unrealized portions) amounted to NT$(21,314) thousand and NT$21,782 thousand, respectively.

D. Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group’s financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to the management internally, which also represents the Group management’s assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 1% basis points, the Group’s net income would have increased or decreased by NT$1,190 and NT$1,617 thousand for the years ended December 31, 2025 and 2024, assuming all other variable factors remain constant. This is

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

mainly due to the Group’s deposits and investments in floating variable rates.

E. Fair value of financial instruments

(a) Fair value hierarchy

The Group’s financial assets at fair value through other comprehensive income are measured at fair value on a recurring basis. The carrying amount and fair value of financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value and lease liabilities, disclosure of fair value information is not required:

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through other comprehensive income
Unquoted equity instruments measured at fair value	$ -	-	-	-	-
Financial assets measured at amortized cost
Cash and cash equivalents	377,832	-	-	-	-
Notes and accounts receivable	50,305	-	-	-	-
Other receivables	2,384	-	-	-	-
Restricted assets (as other current assets)	880	-	-	-	-
Guarantee deposits paid (as other non-current assets)	1,736	-	-	-	-
Subtotal	433,137	-	-	-	-
Total	$ 433,137	-	-	-	-
Financial liabilities measured at amortized cost
Accounts payable	$ 14,400	-	-	-	-
Other payables	25,892	-	-	-	-
Lease liabilities	18,499	-	-	-	-
Total	$ 58,791	-	-	-	-
	December 31, 2024
---	---	---	---	---	---
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through other comprehensive income
Unquoted equity instruments measured at fair value	$ -	-	-	-	-
Financial assets measured at amortized cost
Cash and cash equivalents	448,545	-	-	-	-

~187~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

Notes and accounts receivable	43,066	-	-	-	-
Other receivables	3,116	-	-	-	-
Restricted assets (as other current assets)	869	-	-	-	-
Guarantee deposits paid (as other non-current assets)	1,786	-	-	-	-
Subtotal	497,382	-	-	-	-
Total	$ 497,382	-	-	-	-
Financial liabilities measured at amortized cost
Accounts payable	$ 18,982	-	-	-	-
Other payables	32,300	-	-	-	-
Lease liabilities	24,006	-	-	-	-
Total	$ 75,288	-	-	-	-

(b) Valuation techniques for financial instruments measured at fair value

(2.1) Non-derivative financial instruments

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available.

The fair values of financial instruments other than those in an active market are acquired through valuation technique or referring to quotations from counterparties. The fair value acquired through valuation technique can refer to the current fair value of other financial instruments with substantial conditions and similar characteristics, discounted cash flow method or other valuation techniques.

(18) Financial risk management

A. Overview

The Group has exposures to the following risks from its financial instruments:

(a) Credit risk
(b) Liquidity risk
(c) Market risk

The following likewise discusses the Group's objectives, policies and processes for measuring and managing the abovementioned risks. For more disclosures about the quantitative effects of these risk exposures, please refer to the respective notes in the accompanying financial statements.

B. Risk management framework

The Board of Directors is fully responsible for the development and control of the risk management policy of the Group, which its establishment is to identify and analyze the risks faced by the Group, set adequate risk limits and controls and supervise the risks and compliance with risk limits. Risk management policies and systems are regularly reviewed to reflect changes in market conditions and operations of the Group. The Group develops a disciplined and constructive control environment through training, management principles and operating procedures so that all employees understand their roles and responsibilities.

The Board of Directors oversees how the managements supervision is in compliance with the Group's risk management policies and procedures, and reviews the adequacy of the

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

risk management framework in relation to the risks faced by the Group. The Group is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, and reports the reviews to the Board of Directors.

C. Credit risk

Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its contractual obligations. A credit policy of the Group is stipulated internally to assess the credit quality of customers through the internal risk controls of considering their financial conditions, past experience and other factors, and periodically monitor the use of credit lines. The main credit risk arises principally from cash and cash equivalents, deposits in banks and financial institutions and outstanding accounts receivable from customers' sales. The credits quality of the financial institutions that the Group contacts is stable, and deals with multiple institutions to diversify credit risks. The possibility of default is expected to be very low. The maximum amount of exposure to credit risk on the balance sheet date is the carrying amount of cash and deposits in banks.

D. Liquidity risk

Cash flow forecasts are summarized by the Group's finance department. The management regularly monitors rolling forecasts of working capital needs to ensure sufficient funds to cover daily operating activities and appropriate financial flexibility to maintain a balance between funding continuity and agility.

E. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices that will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(a) Currency risk

The Group operates transnationally, so it is subject to currency risks arising from transactions that are relatively different from the functional currency of the Company and its subsidiaries, mainly the US dollar and Euro. The related currency risk arises from future commercial transactions, assets and liabilities recognized and net investments in foreign operating institutions.

The management of the Group has established a policy, managing currency risk arises from future commercial transactions and assets and liabilities recognized, and based on the principal of natural hedging, the Group considers the funding needs and net positions in the Company and its subsidiaries' currency to hedge risks in accordance with market foreign exchange conditions. Currency risks arise when future commercial transactions and assets or liabilities recognized are denominated in a foreign currency that is not the Group's functional currency.

(b) Interest rate risk

The measures taken by the Group to respond to the risk of interest rate changes are mainly to regularly assess loan interest rates from banks and each currency and maintain good relationships with financial institutions to obtain lower financing costs, meanwhile practice methods such as strengthening working capital management to reduce the dependence on bank loans and diversify the risk of interest rate changes.

~188~

~189~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

(19) Capital management

The goal of the Group’s capital management is to ensure for continuing operating, maintain an optimal capital structure to reduce capital costs, and provide remuneration to shareholders. The Group achieves the goal of capital management through monitoring whether the capital position is sufficient to meet the debt repayments.

7. Related-party transactions

(1) Names of related parties and their relationships

The transactions between the Group and other related parties within the period of this consolidated financial report were as follows:

Name of related party	Relationship with the Group
Abnova-GmbH	Subsidiary of the Group
Citil Pharma Incorporated	Associate of the Group
Abnova USA Inc.	Other related party

(2) Significant transactions with related parties

A. Operating revenue

The significant sales amount of the Group to related parties were as follows:

	2025	2024
Associate	$ 848	-
Other related party	765	-
	$ 1,613	-

The general sales price is no significant difference between the Group’s sales to associates and other related parties, and the collection period is one month.

B. Loans to related parties

Related parties	December 31, 2025	December 31, 2024
Abnova GmbH	$ 2,574	2,382
Less: Investment additions accounted for using equity method	(2,809)	(2,809)
Other non-current liabilities	$ (235)	(427)

(a) The Group did not charge interest for the above-mentioned transactions of loans to related parties.
(b) The Group’s maximum limit of fund lent to related parties in 2025 and 2024 were both NT$5,000 thousand.

(3) Key management personnel transaction

Key management personnel compensation comprised:

	2025	2024
Short-term employee benefits	$ 3,823	12,118

~190~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

8. Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	December 31, 2025	December 31, 2024
Pledged time deposits (as other current assets)	Customs duty pledged,	$ 880	869
Guarantee deposits paid (as other non-current assets)	Deposits for office and plant	1,736	1,786
		$ 2,616	2,655

9. Commitments and contingencies

The Group’s significant contractual commitments were as follows:

The Group and Louisiana State University of the United States signed an exclusive license for CHP technology on September 20, 2018, and the first payment was paid in 2018. Since the follow-up payments of the above contract must meet the requirements of conditions stipulated in the contract and the outcome obtained, whether and when it will be paid are uncertain. The Group’s contractual commitments for the acquisition of intangible assets that were not recognized as of December 31, 2025 and 2024 were NT$34,102 thousand and NT$35,572 thousand, respectively. In addition, the Company paid the maintenance fee on an annual basis according to the contract, and paid royalty after the income was generated.

10. Losses due to major disasters : None.

11. Subsequent events : None.

12. Other

The employee benefits, depreciation, and amortization expenses categorized by function, were as follows:

| By function
By item | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating cost | Operating expenses | Total | Operating cost | Operating expenses | Total |
| Employee benefits | | | | | | |
| Salaries and wages | 30,555 | 39,309 | 69,864 | 33,411 | 43,539 | 76,950 |
| Labor and health insurance | 3,818 | 3,361 | 7,179 | 3,716 | 3,307 | 7,023 |
| Pension | 1,809 | 1,647 | 3,456 | 1,820 | 1,690 | 3,510 |
| Other | 1,827 | 1,454 | 3,281 | 1,792 | 1,471 | 3,263 |
| Depreciation expenses | 6,886 | 12,538 | 19,424 | 6,973 | 12,940 | 19,913 |
| Amortization expenses | 5,785 | 3,404 | 9,189 | 6,662 | 3,388 | 10,050 |

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

Other disclosures

(1) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year ended December 31, 2025:

A. Loans to other parties:

(Expressed in Thousands of New Taiwan Dollars)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Nature of financing	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt Amount	Collateral		Individual funding loan limits	Maximum limit of fund financing
													Name	Value
0	Abnova (Taiwan) Corporation	Abnova-G mbH	Other receivable - related party (Note 4)	Yes	5,000	5,000	2,574	-	2	-	Operating turnover for insufficient working capital	-		-	125,649	502,598

Note 1: The numbers filled in were as follows:
1. The Company is '0'.
2. The investee companies are numbered in order starting from '1'.

Note 2: Financing purpose:
1. '1' for entities the Company has business transactions with.
2. '2' for entities that have short-term financing needs.

Note 3: Limit of fund financing:
1. The total amount available for financing purposes shall not exceed 40% of the Company's net worth in the latest financial statements audited or reviewed by accountants.
2. The individual financing amount to one entity that have business transaction with the Company shall not exceed the total transaction amount.
3. The total amount for short-term financing to one entity shall not exceed 10% (inclusive) of the Company's net worth in the latest financial statements audited or reviewed by auditors.

Note 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”. Please refer to Note 7.

Note 5: The aforementioned transactions have been eliminated in preparing the consolidated financial statements.

B. Guarantees and endorsements for other parties: None.

~191~

Abnova (Taiwan) Corporation and Subsidiaries
Notes to the Consolidated Financial Statements

C. Significant securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

Unit: New Taiwan Dollars / share

Name of holder	Category and name of security	Relationship with company	Account name	Ending balance				Highest percentage of ownership	Note
				Shares	Carrying amount	Percentage of ownership	Fair value
The Company	Hukui Biotechnology Corporation (Samoa)	-	Financial assets measured at fair value through other comprehensive income	50,000	-	1.32%	-	- %

D. Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
E. Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
F. Business relationships and significant intercompany transactions: None.

(2) Information on investees (excluding information on investees in Mainland China):

The following is the information on investees for the years ended December 31, 2025

Unit: New Taiwan Dollars / share

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			The highest amount of shareholding or capital contribution during the period	Net income (loss) of investee	Investment profit (loss) recognized by investor	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying amount
The Company	Abnova GmbH (Note 4)	Germany	Distribution of biological products	923	923	(Note 4)	100.00%	(2,809)	- %	-	-	Subsidiary
"	Abnova Holding Corporation	British Virgin Islands	Investment business	2,672	2,672	1,700	100.00%	6,407	- %	(4,164)	(4,164)	"
"	AxleBio Ventures	Taiwan	Investment business	1,300	1,300	130,000	100.00%	365	- %	(569)	(569)	"
AxleBio Ventures	Citil Pharma Incorporated	USA	R&D of cell therapy technology	342	342	2,890,000	40.00%	(489)	- %	(1,359)	(543)	Associate (Note 5)
Abnova Holding Corporation	Abnova (Cayman) Corporation	Cayman Islands	Investment business	629	629	20,000	100.00%	5,842	- %	(3,822)	(3,822)	Second-tier subsidiary (Note 6)
Abnova (Cayman) Corporation	Abnova Diagnostics (Japan)	Japan	R&D, manufacturing and sales of medical device, etc., testing services	-	18,072	-	- %	-	- %	(598)	(598)

Note 1: The above transaction amount was eliminated in the consolidated financial statements.
Note 2: The original investment amount of investees was calculated at USD1:TWD31.43 and at JPY1:TWD0.2008 of December 31, 2025. of December 31, 2025.
Note 3: The investee is a limited company with no shares issued.
Note 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in "Other non-current liabilities". Please refer to Note 7.
Note 5: Please refer to Note 6(5).
Note 6: The liquidation procedures of Abnova Diagnostics (Japan) have been completed in December 2025.

(3) Information on investment in Mainland China: None.

~192~

~193~

Abnova (Taiwan) Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

14. Segment information

(1) General information

The Group’s main business is the R&D and production of biotechnology and operates only a single industry. The operating decision-makers of the Group evaluate performance and allocate resources based on the company’s overall operating results, and the group is identified as a single reportable segment.

(2) Segment information

The accounting policies of the Group's operating segments are the same as ‘summary of significant accounting policies’ stated in Note 4 to the financial reports, and profit or loss are measured by net operating income, which is as the basis for evaluating the operating segments’ performance.

(3) Reconciliation of segment’s income

The Group’s net operating income reported to the chief operating decision-maker adopts the same measurement method as the income and expenses in the statements of comprehensive income, so the reconciliation items of net operating income are the same as those in the statements of comprehensive income.

(4) Geographic information

In presenting information on the basis of geography, segment revenue was based on the geographical location of customers, while non-current assets were based on the geographical location of the assets. Please refer to Note 6(14) for the revenue from external customers. Non-current assets include property, plant and equipment, intangible assets and other assets, excluding financial instruments, deferred tax assets, assets of post-employment benefits and guarantee deposits paid.

Non-current assets	December 31, 2025	December 31, 2024
Non-current assets:
Taiwan	$ 320,784	339,414
Japan	-	23
Total	$ 320,784	339,437

(5) Major customers

The Group’s income from a single customer accounted for 10% of the operating revenue for the years ended December 31, 2025 and 2024 was as follows:

	2025	2024
Customer A	$ 37,109	35,443
Customer B	-	34,093
Total	$ 37,109	69,536

Abnova (Taiwan) Corporation

Chairman: Wilber Huang

Address: 9th Floor., No.108, Jhouzih St., Neihu District. Taipei City
Phone: (02)8751-1888

AI assistant

Abnova — Annual Report 2025

52384_rns_2026-06-08_99ae03f0-dc1f-4528-89d1-64085c555393.pdf

Abnova (Taiwan) Corporation

2025 Annual Report

III. Capital Overview

IV. Operational Highlights

V. Review of Financial Conditions, Operating Results, and Risk Management

VI. Special Disclosure

VIII. Appendix

2. Product Development:

(1) RNA Laboratory Reagents

(2) In Vivo Functional Grade Antibodies

(3) VLP and Nanodisc Membrane Protein Expression Systems:

III. The effect of external competition, the legal environment, and the overall business environment

1. External Competition:

2. Legal Environment:

3. The remuneration paid to President and Vice Presidents in the most recent fiscal year (2025):

Range of Remuneration

4. Names and acquisition status of managerial personnels who have acquired new restricted employee shares: The Company did not distribute employees' compensation for the year 2025.

II. Compensation to directors:

2.3 Corporate Governance

2.3.1 Board of Directors and Performance Evaluation of the Board of Directors

2.3.2 Audit Committee

The company's regular communication with stakeholders

2.3.4 If the company has a remuneration committee or nomination committee in place, the composition and operation of such committee shall be disclosed

(1) Information of Members of the Remuneration Committee

(2) Attendance of Members at Remuneration Committee Meetings

Energy Management Plan and Implementation Status

3. Implementation of Energy-Saving Measures

1-1 The greenhouse gas inventory and assurance status of the company in the past two years

1-1-1 Information on greenhouse gas inventory

1-1-2 Greenhouse gas assurance information:

1-2 Greenhouse gas emission reduction targets, strategies, and concrete action plans:

GHG emission reduction baseline year and reduction targets:

Greenhouse gas Reduction Strategy and concrete action plan:

Carbon Reduction Strategy and Action Plan for 2030:

Progress on Emission Reduction Targets

1. Statement of Internal Control System

2.4 Information Regarding the Certified Public Accountants' Audit Fee

2.5 Information on the replacement of certified public accountant:

3.1.2 List of major shareholders

3.1.3 Company's dividend policy and its state of implementation

Article 24:

Article 24-1:

3.1.6 Share repurchases by the Company: Not applicable.

3. Development of new products

(1) RNA Laboratory Reagents

(2) In Vivo Functional Grade Antibodies

(3) VLP and Nanodisc Membrane Protein Expression Systems:

(4) circRNA Sponge

(5) RNAutomation™ mRNA Upgrades :

4.1.2 Overview of industry

Global pharmaceutical market

(2) Detection system instruments

3. Various development trends for products

(1) Antibody reagent category

(2) RNA Laboratory Reagents

(3) Detection system instruments

4. Product Competition

(1) Antibody reagent category

4.1.3 Overview of technologies and research and development work

3. Intellectual property management plan and implementation

(1) Key intellectual property protection measures

A. Patent management

(2) Implementation status

4.1.4 Long- and short-term business development plans

1. Short-term business development plan

(1) Antibody reagent category

2. Long-term business development plan

4.2 Market and Sales Overview

4.2.1 Market analysis

1. Geographic areas where the main products (services) of the company are provided (supplied)

2. Market Share

(1) Antibody reagent category

(2) Detection system instruments

3. Future demand and supply conditions and the market's growth potential

(1) Antibody reagent category

(2) Detection system instruments

4. Competitive Niche

Abnova Annual Report 2025