MACNICA

Stock Code: 3528

2025

Macnica Anstek Inc.

Regular Shareholder's Meeting Handbook

Meeting Format: Face-to-face Shareholder's meeting

May 27th, 2026

Meeting Location: 21F, No. 75, Sec. 1 Xintai 5th Rd., Xizhi Dist.

New Taipei City, Taiwan (Macnica Anstek Inc.)

I. The Company's spokesperson

Name: Lin, Chih-Feng

Title: Assistant Vice President of General Administration

Acting spokesperson: Chang, Kuei-Chen

Title: Assistant Vice President of Operations Department

Telephone: (02) 2698-2526

Email: [email protected]

II. Head office address and telephone number

Address: 21F, No. 75, Section 1, Xintai 5th Road, Xizhi District, New Taipei City

Telephone: (02) 2698-2526

III. Shareholder services

Name: Shareholder Services Department of Fubon Securities Co. Ltd.

Address: 11F., No. 17, Xuchang Street, Zhongzheng District, Taipei City

Website: http://www.fubon.com

Telephone: (02) 2361-1300

IV. Certified public accountant

Name: Ernst & Young Global Limited CPA Chang, Zheng-Dao; Yang, Hung-Bin

Address: 9 F., No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City

Website: http://www.ey.com/Taiwanss

Telephone: (02) 2757-8888

V. Overseas securities: Not applicable

VI. Website: https://www.macnica.com/apac/anstek/zh_tw/

Macnica Anstek Inc.

Table of Contents of 2025 Annual Report

One. Letter to Shareholders... 4

Two. Corporate Governance Report... 8

I. Information on directors, the president, vice presidents, and the heads of various departments and branches... 8
II. Remuneration paid during the most recent fiscal year to directors of the board, supervisors, the president and vice presidents... 15
III. Implementation of corporate governance... 22
IV. Information on CPA's audit fees... 87
V. Replacement of CPAs... 87
VI. Where the Chairman, President, Chief Financial Officer, or Chief Accounting Officer, who has been employed by the CPA firm or its affiliates in the most recent year, the name, title, and period of employment at the firm or any affiliate thereof shall be disclosed... 87
VII. Changes in the transfer or pledge of shares by directors, supervisors, officers, and shareholders holding over 10% of the outstanding shares in the previous year and by the date of report publication... 88
VIII. Information on top ten shareholders and their mutual relationship as spouse or blood relative within the second degree... 89
IX. 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... 89

Three. Financing Activities... 90

I. Matters to be recorded regarding the capital and shares... 90
II. Issuance of corporate bonds... 93
III. Issuance of preference shares... 93
IV. Issuance of depository receipts... 93
V. Issuance of employee stock options... 94
VI. Issuance of restricted stock awards... 96
VII. Issuance of new shares due to M&A or transfer of shares of another company... 96
VIII. Fund application plan execution... 96

Four. Overview of Operations... 97

I. Information on business... 97
II. Overview of the market and production and sales... 116
III. The number, average length of service, average age, and distribution of education attainment of in-service employees during the most recent two years and up to the publication date of this annual report... 126

IV. Disbursements for environmental protection... 126
V. Labor-management relations... 127
VI. Cyber security management... 129
VII. Important contracts... 131

Five. Review and Analysis of the Financial Position and Performance and Risk Management... 132

I. Financial position... 132
II. Financial performance... 133
III. Cash flow... 133
IV. Influence of major capital expenditures on financial business during the most recent year... 134
V. Investment policy for the most recent year, the main reasons for profit or loss, an improvement plan, and an investment plan for the following year... 134
VI. Risks that should be analyzed and assessed during the most recent year and as of the publication date of this annual report... 134
VII. Other important matters... 136

Six. Special Matters... 136

I. Information related to the Company's affiliates... 136
II. Private placement of securities in the most recent year up to the publication date of this annual report... 136
III. Other necessary supplementary information... 136
IV. Any event as specified in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act with a material impact on shareholders' equity or securities prices occurred during the most recent year and up to the publication date of this annual report... 136

One. Letter to Shareholders

We would like to thank all shareholders for taking time out of their busy schedules to attend the 2026 annual general meeting.

The Company's 2025 revenue was NT$8.96 billion, an increase of NT$3.67 billion from 2024, with a growth rate of 69.32%; net profit after tax reached NT$153 million, a decrease of 44.86% from 2024, and earnings per share were NT$2.3.

In 2025, continued growth in demand for AI-related applications and high-performance computing (HPC) drove stable increases in demand for AI servers, data centers, network communication equipment, and industrial control applications, leading to significant growth in the Company's overall revenue. However, due to the overall economic environment and exchange rate fluctuations, the appreciation of NTD resulted in an exchange loss, which affected overall profitability.

The Company will continue to strengthen its position in industrial control and IoT-related application fields, accelerate the integration of agency product line resources, expand the scope of applications to leverage product synergies, and enhance the completeness of high-end integrated solutions. In the future, the Company will focus on high value-added markets related to AI applications, AI edge computing, automated testing, and industrial control, and actively plan for smart medical, 5G communications, and energy storage applications. We will deepen the integrated application development of "AI + IoT + 5G," continuously strengthen technical service capabilities and product added value, improve overall operational efficiency and profitability, and promote the Company's long-term stable growth.

We are persistent in achieving our development goals. We have continued to develop and strive for product lines after the consolidation of the original manufacturers, and fully utilized the Group's resources to cultivate relationships with customers and expand the market development efforts for the brands we distribute. We are committed to building our company into a leading position and creating greater value for our shareholders. Please continue to show us your support and encouragement, and witness continuous growth and development of the Company together.

The following is a summary of the Company's 2025 year business results and 2026 year business plan:

I. Business results

(I) Implementation results of business plan

The Company's business results for 2025 are shown in the following table:

Unit: NT$ thousand; %

Item\Year	2025	2024	Change percentage
Operating revenue	8,959,308	5,291,435	69.32
Operating gross profit	998,821	686,560	45.48
Net operating profit	613,234	328,382	86.74
Net profit after tax	152,973	277,449	(44.86)
Earnings per share (NT$)	2.30	4.16	(44.71)

The Company's operating revenue for 2025 reached NT$8.96 billion, a significant increase of 69.32% from 2024. This was mainly driven by the growing popularity of AI server applications, increased demand for CoWoS advanced packaging, and a rebound in industrial control demand, which led to simultaneous growth in testing equipment, liquid cooling systems, and power management applications.

In the first half of 2025, the international financial market fluctuated more severely due to the impact of the US equivalent tariff policy and the uncertain global trade situation, driving changes in capital flow and causing the NTD to appreciate rapidly against the USD in the short term. The Company suffered a large exchange loss due to its foreign currency asset position, resulting in a decline in profits in 2025 compared to 2024.

The above impact was mainly caused by exchange rate fluctuations, not by a change in the Company's operational fundamentals. In response to the risk of exchange rate fluctuations, the Company has further reviewed its foreign exchange exposure position and strengthened its exchange rate risk management measures, including adjusting its foreign currency asset and liability structure, to reduce the impact of exchange rate fluctuations on its future financial performance.

(II) Budget implementation status

The Company did not disclose its financial forecast for 2025 while the actual business conditions did not differ materially from the Company's internal planning.

(III) Financial receipts and expenditures and profitability analysis.

1. Financial receipts and expenditures

The increase in net cash outflow from operating activities in 2025 was mainly due to the expansion of operational scale and the increase in accounts receivable and inventory. For investment activities, net cash inflow decreased mainly due to adjustments to foreign currency asset positions to align with the foreign exchange risk management strategy, which resulted in relatively lower interest income. The decrease in net cash inflow from financing activities was due to higher cash dividend payments this year.

Unit: Thousands of NTD

Item\Year	2025	2024
Net Profit before tax for the period	188,905	342,103
Net cash (used in) generated from operating activities	(1,526,162)	376,437
Cash flows from investing activities	45,620	61,388
Net cash generated from financing activities	392,250	829,508
Net (decrease) increase in cash and cash equivalents	(1,088,292)	1,267,333
Balance of cash and cash equivalents at the beginning of the year	1,889,754	622,421
Ending cash and cash equivalents	801,462	1,889,754

2. Profitability analysis

The Company's operating revenue for 2025 grew significantly compared to 2024, indicating a continuous expansion of the overall operational scale. However, due to the overall economic environment and exchange rate fluctuations, the NTD appreciated significantly during the year, resulting in an exchange loss that affected profits. Therefore, profitability indicators were slightly lower compared to the same period last year.

Unit: %

Item\Year	2025	2024
Return on assets	2.76	4.95
Return on shareholders' equity	7.85	14.65
Operating profit to paid-in capital ratio	92.02	49.28
Net profit before tax to paid-in capital ratio	28.35	51.34
Net profit margin	1.71	5.24
After-tax earnings per share (NTD)	2.30	4.16

(IV) Research and development status

The Company’s technical team specializes in new technology research, dedicated to providing comprehensive technical support services to assist customers in resolving various issues encountered during product development. Services include component selection recommendations, circuit design, system optimization, providing test versions, and technical troubleshooting.

Additionally, the team continuously develops new product lines to offer more complete and competitive product options, meeting customers’ diverse needs.

II. Summary of the 2026 business plan

(I) Business policies

The Company's 2026 business policies are as follows:

Continue to expand the product line and deepen cooperation with suppliers to create a competitive and complete product supply chain.
Expand product application markets to more sectors, enhancing market coverage.
Leverage group resources, cultivate customer relationships, expand customer base, and increase market influence.
Strengthen talent development to lay the foundation for company growth.

(II) Estimated sales volume and its basis

The Company has not made public its financial forecast. The sales volume is estimated by referencing to the forecast of the market situation for 2026 by each supplier and the Company's assessment of customer demand, and based on the Company's expected achievement of the target, taking into account the overall industry and economic conditions, and adjusted according to the achievement status.

(III) Sales policy

The Company's sales policy focuses on industrial control customers and is divided into five main fields: analog logic, digital, audio and video transmission, defense and aerospace, and computer peripherals. In addition to optimizing existing product lines, the Company is actively developing new product lines to offer integrated services. Our goal is to provide one-stop shopping services to customers, increasing market share and profitability.

III. Impact of the external competitive environment, regulatory environment and overall business environment

As an agency business, the Company has seen original manufacturers constantly changing the agency landscape through M&A in recent years, requiring agencies to provide value-added services to remain competitive in the industry. The Company has been providing technical support to customers, developing markets, and creating demand for a long time. Additionally, it has formed an alliance with the Japanese Macnica Group. The external competition and the overall business environment have not had a significant impact on the Company, nor have any regulations had a significant impact on the Company.

IV. Future development strategy of the Company

In addition to continuously developing and actively pursuing product lines following manufacturer consolidations, the Company also fully utilizes Group resources to cultivate customer relationships and expand the customer base. Furthermore, we provide comprehensive and competitive solutions to cover a broader application market, constantly increasing market share while strengthening company brand recognition, thereby enhancing shareholder value and overall corporate competitiveness.

While pursuing stable operations and continuous growth, we are keenly aware that sustainable management is the Company's long-term goal. With the latest establishment of the Sustainability Management Department, the Company will gradually implement green operations and GHG reduction, and continue to create a high-quality workplace environment for the physical and mental health of employees. At the same time, we will also connect with group resources to continue to strengthen the Company's corporate operational structure and operational resilience from the system and practical aspects, and enhance its sustainability impact and competitiveness.

The Company closely integrates sustainability strategies with its daily core business operations, seeking to create positive environmental and social value while driving innovation within the industry.

Macnica Anstek Inc.

Person in Charge: Wu, Wei-Kuo

Company Officer: Chen, Fa-Yung

Chief Accounting Officer: Li, Ching-Yi

Two. Corporate Governance Report

I. Information on directors, the president, vice presidents, and the heads of various departments and branches:

(1) Directors and supervisors

Directors and supervisors

Unit: Share; %

Record date: March 29, 2026

Job title (Note 1)	Nationality or place of registration	Name	Gender Age (Note 2)	Date elected (taking office)	Term of office	Date first elected (Note 3)	Shareholding when elected		Number of shares currently held		Current shareholding of spouse or minor children		Shareholding by nominee arrangement		Major education and experience (Note 4)	Concurrent positions at the Company or other companies	Spouse or relatives within second degree of kinship who are other managers, directors, or supervisors of the Company
							Number of shares	Shareholding (%)	Number of shares	Shareholding (%)	Number of shares	Shareholding (%)	Number of shares	Shareholding (%)			Job title	Name	Relationship
Chairperson	R.O.C.	Macnica Chungju Co., Ltd.
Representative: Wu, Wei-Kuo	Male
41–50 years old	2025.05.28	3	2019.10.04	33,954,608	50.95	33,954,608	50.95	0	0	0	0	Executive master of business administration, University of Texas at Arlington
Bachelor of Materials Engineering, University of British Columbia, Canada
Chairman of Macnica Chungju Co., Ltd.
Chairman of Macnica Taiwan, Limited	Chairman-cum-CEO of the Company
Chairman-cum-CEO of Macnica Galaxy Inc.
Chairman of Macnica Chungju Co., Ltd.	None	None	None	None
Director	R.O.C.	Lee, Jui-Si	Male
61–70 years old	2025.05.28	3	2000.12.26	3,631,384	5.45	3,631,384	5.45	1,086,256	1.63	0	0	Department of Automatic Control Engineering, Feng Chia University
Manager of the Business Department, Symex Technology International Corporation
President of Andai Technology Co., Ltd.
Chairman-cum-President of the Company	Vice Chairman-cum-Deputy CEO of the Company	Vice President	Lee, Jui-Fang	Brothers	None
Director	R.O.C.	Chen, Fa-Yang	Male
51–60 years old	2025.05.28	3	2025.05.28	20,227	0.03	11,227	0.02	0	0	0	0	Aslto University Engineer at Askey Computer Corp.	President of the Company	None	None	None	None
Director	R.O.C.	Chou, Chu-Ting	Male
41–50 years old	2025.05.28	3	2025.05.28	72,000	0.11	45,000	0.07	0	0	0	0	Master's Degree, Department of Computer Science and Information Engineering, National Taiwan Normal University
Assistant Manager, Department of Application Engineering, Macnica Galaxy Inc.
Project Manager at WT Microelectronics Co., Ltd.	Vice President of the Company	None	None	None	None
Director	R.O.C.	Cheng, Han	Female
41–50 years old	2025.05.28	3	2025.05.28	0	0	0	0	0	0	0	0	Master's Degree, Department of Computer Science and Information Engineering, National Taiwan Normal University
CPA, Honesty CPA Firm
Manager at Ernst & Young Global Limited
Manager at Deloitte & Touche
Director of San Rue E&T Corporation	Managing partner, SysPartnerGrow
Director of HD Renewable Energy Co., Ltd.	None	None	None	None
Director	R.O.C.	Yang, Su-Fang	Female
51–60 years old	2025.05.28	3	2025.05.28	0	0	0	0	0	0	0	0	Master of International Business, Tamkang University
Independent Director of Alar Pharmaceuticals Inc.
Supervisor of Forward Electronics Co., Ltd.
Assistant Vice President of Deloitte & Touche	CPA, Specialized CPA Firm
Chairperson, Yuan-Lung Technology Humanity Education Foundation	None	None	None	None
Independent director	R.O.C.	Sun, Te-Chih	Male
41–50 years	2025.05.28	3	2019.10.04	0	0	0	0	0	0	0	0	LL.M., Columbia University in the City of New York
Master of Laws, National Taiwan University	Attorney-in-charge, Innovatus Law	None	None	None	None

Job title (Note 1)	Nationality or place of registration	Name	Gender Age (Note 2)	Date elected (taking office)	Term of office	Date first elected (Note 3)	Shareholding when elected		Number of shares currently held		Current shareholding of spouse or minor children		Shareholding by nominee arrangement		Major education and experience (Note 4)	Concurrent positions at the Company or other companies	Spouse or relatives within second degree of kinship who are other managers, directors, or supervisors of the Company			Remarks (Note 5)
							Number of shares	Shareholding (%)	Number of shares	Shareholding (%)	Number of shares	Shareholding (%)	Number of shares	Shareholding (%)			Job title	Name	Relationship
			old												Baker McKenzie. The Law Society of Hong Kong
Independent director	Malaysia	Tan, Gin-Hwee	Male 51-60 years old	2025.05.28	3	2019.10.04	0	0	0	0	0	0	0	0	Master of Mechanical Engineering, National Cheng Kung University Vice President of Ta Yu Group	General Manager, Taiwan, Ventiva Inc. (US Company) Vice President of Shanghai M & G Stationery Inc.	None	None	None	None
Independent director	R.O.C.	Wang, Tzu-Jou	Female 41-50 years old	2025.05.28	3	2025.05.28	0	0	0	0	0	0	0	0	Master of Accounting, National Taipei University CFO (Vice President), Green World FinTech Service Co., Ltd. Manager of Finance and Accounting Department, Vanyi Assistant Manager, Sustainable Development Office, Wiwynn Corporation Project Assistant Manager, Accounting Department, Lanner Technology Assistant Manager, Finance Quality Management Office, Synnex Technology International Corporation Professional Assistant Manager, Investment Banking Department, Yuanta Securities Co., Ltd. Assistant Manager, Audit, KPMG	Independent director of the Company	None	None	None	None

Note 1: The names of institutional shareholders and their representatives shall be listed separately (the names of representatives of institutional shareholders shall be indicated), and Table 1 below shall be completed.
Note 2: Please list the ages of the individuals and present them in ranges, such as 41-50 years old or 51-60 years old.
Note 3: Please fill in the times when the individuals served as a director or supervisor of the Company for the first time. If there is any interruption, please indicate it in the notes.
Note 4: If an individual has worked at an accounting firm where the CPAs work or an affiliate thereof during the period disclosed above, please specify the job title and position.
Note 5: Where the Chairman and the President or person in an equivalent position (top-level manager) are the same person, spouses, or relatives within the first degree of kinship, the reason for, reasonableness, necessity thereof, and countermeasures shall be disclosed (e.g. increasing the number of independent directors on the board or having more than half of the directors who are not employees or managers concurrently).

Table 1: Major shareholders of institutional shareholders
March 29, 2026

Name of institutional shareholder (Note 1)	Major shareholder of institutional shareholder (Note 2)
Macnica Chungju Co., Ltd.	Macnica Inc. Representative Kazumasa Hara	Shareholding (%)	85.3%

Note 1: Where directors or supervisors who are representatives of institutional shareholders, the names of the institutional shareholders shall be entered.
Note 2: Please specify the names of major shareholders of the institutional shareholder (with their shareholdings ranking Top 10), and the shareholdings thereof. Where the major shareholder is a juridical person, please also complete the following Table 2.
Note 3: If an institutional shareholder is not a company, the shareholder's name and shareholding that shall be disclosed above, i.e. the name of the investor or contributor (see the announcements made by the Judicial Yuan), and their capital contribution percentage should be disclosed. If the contributor has passed away, please mark "Deceased."

Table 2: Principal shareholders of corporate shareholders in Table 1 who are legal entities
March 29, 2026

Name of Legal Person (Note 1)	Principal shareholder of institutional shareholder (Note 2)
Macnica Inc.	Macnica Holdings, Inc. Representative Kazumasa Hara	Shareholding (%)	100%

Note 1: If any major shareholder in Form 1 above is a legal person, fill in the name of that legal person.
Note 2: Please specify the names of major shareholders of the institutional shareholder (with their shareholdings ranking Top 10), and the shareholdings thereof.
Note 3: If an institutional shareholder is not a company, the shareholder's name and shareholding that shall be disclosed above, i.e. the name of the investor or contributor (see the announcements made by the Judicial Yuan), and their capital contribution percentage should be disclosed. If the contributor has passed away, please mark "Deceased."

Disclosure of information on directors' and supervisors' professional qualifications and the independence of independent directors:

Criteria Name	Professional qualifications and experience (Note 1)	Independence (Note 2)	Number of other public companies where the individual concurrently serves as an independent director
Wu, Wei-Kuo	Mr. Wu, Wei-Kuo holds an executive master of business administration from the University of Texas at Arlington and a bachelor's degree in materials engineering from the University of British Columbia. Currently, he is the Chairman-cum-CEO of both Macnica Anstek Inc. and Macnica Galaxy Inc., and the Chairman of Macnica Chungju Co., Ltd.	Is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Lee, Jui-Si	Mr. Lee, Jui-Si has a bachelor's degree in automatic control engineering from Feng Chia University. He used to serve as the Manager of the Business Department, Synnex Technology International Corporation, and the President of Andai Technology Co., Ltd.; is currently serving as the Vice Chairman-cum-Deputy CEO of Macnica Anstek Inc.	Is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Chen, Fa-Yung	Mr. Chen, Fa-Yung holds a bachelor's degree from Aalto University. He previously worked as an engineer at Askey Computer Corp. He is currently the General Manager of Macnica Anstek Inc.	Is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Chou, Chu-Ting	Mr. Chou, Chu-Ting holds a master's degree in Computer Science and Information Engineering from National Taiwan Normal University. He previously worked as an Assistant Manager of the Application Engineering Department of Macnica Galaxy Inc. and a project manager of WT Microelectronics Co., Ltd. He is currently serving as the Vice President of Macnica Anstek Inc.	Is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Cheng, Han	Ms. Cheng, Han holds a master's degree in Computer Science and Information Engineering from National Taiwan Normal University. She previously worked as a certified public accountant at Honesty CPA Firm, a manager at Ernst & Young, and a manager at Deloitte & Touche. Currently, she is the managing partner at SysPartnerGrow and a director at Sun Rise E&T Corporation.	Is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Yang, Su-Fang	Ms. Yang, Su-Fang holds a master's degree in International Business from Tamkang University. She previously worked as an independent director of Alar Pharmaceuticals Inc., independent supervisor at Forward Electronics Co., Ltd., and an associate director of Deloitte & Touche. Currently, she is an accountant at Specialized CPA Firm and the Chairman of Yuan-Lung Technology Humanity Education Foundation.	Is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Sun, Te-Chih	Mr. Sun, Te-Chih is a licensed attorney in Taiwan and has more than 15 years of work experience at law firms.	Meets the requirements under Articles 3 and 4 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies and is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Tan, Gin-Hwee	Mr. Tan, Gin-Hwee holds a master's degree in Science in Mechanical Engineering from National Cheng Kung University. He previously worked as the Vice President of the Ta Yu Group. He is currently the General Manager for the Taiwan region at Ventiva Inc. (US company) and the Vice President of Chen Guang Co., Ltd.	Meets the requirements under Articles 3 and 4 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies and is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None
Wang, Tzu-Jou	Ms. Wang, Tzu-Jou holds a degree, and previously worked as the CFO (Deputy General Manager) of Green World FinTech Service Co., Ltd., Manager of the Finance and Accounting Department of Vanyi Co., Ltd., Assistant Manager of the Sustainable Development Office, Wiwynn Corporation, Project Assistant Manager, Accounting Department of Lanner Technology, Project Assistant Manager, Finance Quality Management Office of Synnex Technology International Corporation, Professional Assistant Manager, Investment Banking Department of Yuanta Securities Co., Ltd., Assistant Manager, Audit, KPMG.	Meets the requirements under Articles 3 and 4 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies and is not under any of the circumstances under the subparagraphs of Article 30 of the Company Act.	None

Board diversity and independence:

As we advocate for a board diversity policy, to strengthen corporate governance and

facilitate the development of the composition and structure of the board, we have required in Article 20 of the Corporate Governance Best-Practice Principles that the composition of the Board of Directors shall be based on the diversity principle, and that the number of directors as the Company's managers concurrently may not exceed one-third of all directors, if possible, among other requirements for the basic composition, professional backgrounds, professional skills, and industry experience.

To achieve the desired goals of corporate governance, the Board of Directors must possess "operational judgment ability," "business judgment ability," "leadership ability," "decision-making ability," "industry knowledge," "international market perspective," "accounting and financial capability," "crisis management ability," and "risk management knowledge and ability."

(1) Board diversity:

The board members are nominated through a rigorous selection process depending on the scale of the Company's business development and practical operational needs, with their diverse backgrounds, professional abilities and experience, as well as moral reputation and leadership taken into account.

We have nine directors on the board, of which about $44\%$ are also employees, around $33\%$ are independent directors, and $33\%$ are female directors.

Of the nine directors, one is in the age range of 61-70 years old, three are in the age range of 51-60 years old, and five are in the age range of 41-50 years old.

Among of the three seats of independent directors, two have a service tenure of about 7 years, and the other one has a tenure of about 1 years.

The Company's policy management objectives are as follows:

Goals for diversified policy management	Achievement status
Less than half of the independent directors have served three terms or less.	Achieved
At least one-half of the seats are held by independent directors with legal, accounting, or technological expertise.	Achieved
The number of director seats not concurrently held by company managers is greater than the number of director seats concurrently held by company managers.	Achieved
At least one female director	Achieved

The implementation of the diversity policy of all board members is described as follows:

Diversity item Name of director	Nationality	Basic Information						Professional background			Industry experience
		Gender	Concurrent serving as an employee of the Company	Age distribution (years old)		Service tenure of independent directors		Accounting and finance	Laws	Industry	Ability to make operational judgments.	Operational judgment ability	Leadership	Decision making	Industry knowledge	Vision of the global market	Accounting and finance	Crisis management	Risk management knowledge and ability
				41 to 50	51 to 60	61 to 70	Less than 3 years												3 to 9 years
Director	Wu, Wei-Kuo	R.O.C.	Male	V	V						V	V	V	V	V	V	V	V	V	V
	Lee, Jui-Si	R.O.C.	Male	V					V			V	V	V	V	V	V	V	V	V
	Chen, Fa-Yung	R.O.C.	Male	V		V						V	V	V	V	V	V	V	V	V
	Chou, Cho-Ting	R.O.C.	Male	V	V							V	V	V	V	V	V	V	V	V
	Cheng, Han	R.O.C.	Female		V					V		V	V	V	V	V	V	V	V	V
	Yang, Su-Fang	R.O.C.	Female			V				V		V	V	V	V	V	V	V	V	V
Independent director	Sun, Te-Chih	R.O.C.	Male		V				V		V		V	V	V	V		V	V	V
	Tan, Gin-Hwa	Malaysia	Male			V			V			V	V	V	V	V	V	V	V	V
	Wang, Ten-Jou	R.O.C.	Female		V			V		V			V	V	V	V		V	V	V

(2) Board independence:

We have three independent directors in place in accordance with the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies and Article 14-2 and Article 14-3 of the Securities and Exchange Act, accounting for approximately 33% of all independent directors.

All independent directors complied with the regulations concerning independent directors set forth by the Securities and Futures Bureau of the Financial Supervisory Commission. No such circumstances exist among the directors and independent directors as prescribed in Paragraphs 3 and 4 of Article 26-3 of the Securities and Exchange Act. Therefore, the Company’s Board of Directors is independent.

The profiles of all directors, including their mutual relationships, are disclosed on page 8 of this annual report.

Note 1: Professional qualifications and experience: Please state each director and supervisor’s professional qualifications and experience. If they are members of the Audit Committee and have accounting or financial expertise, please state their accounting or financial background and work experience with an additional description of if they are under any circumstances in any subparagraph of Article 30 of the Company Act.

Note 2: Specify if the independent directors meet the criteria for independence, including but not limited to (1) whether the individual and spouse or relatives within the second degree of kinship thereof are serving as directors, supervisors, or employees of the Company or its affiliates; (2) the number of the Company’s shares held by the individual or spouse or relatives within the second degree of kinship thereof (or by nominee arrangement) and percentage; (3) whether the individual is serving as a director, supervisor, or employee of a company with specific relations with the Company (refer to Article 3, paragraph 1, subparagraphs 5 to 8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies); (4) the amount of remuneration received for providing business, legal, financial, accounting, or other services to the Company or its affiliates in the last two years.

Note 3: Please refer to the examples of best-practice principles on the website of the Corporate Governance Center of the Taiwan Stock Exchange for disclosure methods.

(II) Profile of president, vice presidents, assistant vice presidents, and supervisors of departments and branches

Unit: Share; %

Record date: March 29, 2026

Job title (Note 1)	Nationality	Name	Gender	Date elected (taking office)	Number of shares held		Shareholding of spouse or minor children		Shareholding by nominee arrangement		Major education and experience (Note 2)	Concurrent positions at other companies	Managers who are spouse or blood relatives within the second degree			Remarks (Note 3)
					Number of shares	Shareholding (%)	Number of shares	Shareholding (%)	Number of shares	Shareholding (%)			Job title	Name	Relationship
President		R.O.C.	Chen, Fa-Yung	Male	2025.05.28	11,227	0.02	0	0	0	0	Aalto University Engineer at Askey Computer Corp.	None	None	None	None	None
Vice President		R.O.C.	Lee, Jui-Fang	Male	2000.12.26	2,375,591	3.56	0	0	428,904	0.64	Department of Electronic Engineering, Feng Chia University Manager of the Business Department, New Southern Engineering Enterprises Co., Ltd. Manager of the Business Department, Gaihong Technology Co., Ltd. Manager of the Business Department, Andai Technology Co., Ltd.	None	Vice Chairman-cum-Deposty CEO	Lee, Jui-Si	Brothers	None
Sales Division I	Assistant Vice President	R.O.C.	Tan, Min-Li	Female	2008.04.01	41,000	0.06	0	0	0	0	HEC Liège Management School Sales specialist of Zhen-Chiao Industrial Co., Ltd.	None	None	None	None	None
	Assistant Vice President	R.O.C.	Huang, Chun-Hao	Male	2014.04.02	26,348	0.04	0	0	0	0	Department of Electrical Engineering at National Yanlin University of Science and Technology Section Chief of System Integration Department at Chroma ATE Inc.	None	None	None	None	None
	Assistant Vice President	R.O.C.	Wu, Chun-Hsien	Male	2023.02.01	143	0.00	0	0	0	0	Department of Electronic Engineering at Minghsin University of Science and Technology Engineer at Chroma ATE Inc.	None	None	None	None	None
	Senior Manager	R.O.C.	Lin, Shu-Hsien	Male	2007.11.01	21,551	0.03	0	0	0	0	Institute of Electrical Engineering at Chung Yuan Christian University Product Manager at Check Technology Co., Ltd.	None	None	None	None	None
	Senior Manager	R.O.C.	Huang, Hsi-Yu	Male	2013.03.01	29,607	0.04	0	0	0	0	Auckland University Sales Engineer at Inscore Technology Co., Ltd.	None	None	None	None	None
Sales Division II	Vice President	R.O.C.	Chou, Chu-Ting	Male	2007.11.01	45,000	0.07	0	0	0	0	Department of Computer Science and Information Engineering at National Taiwan Normal University Project Manager at WT Microelectronics Co., Ltd.	None	None	None	None	None
	Assistant Vice President	R.O.C.	Pan, Chun-Ming	Male	2023.02.01	66,064	0.10	1,080	0.00	0	0	Department of Electronic Engineering at Chang Chou University of Science and Technology Senior Application Engineer at WT Microelectronics	None	None	None	None	None
	Senior Manager	R.O.C.	Kuo, Yi-Fei	Female	2015.03.01	0	0	0	0	0	0	Department of English at Wenzao Ursuline University of Languages Section Chief of Sales Department at Nan Sing Chemical Manufacturing Co., Ltd.	None	None	None	None	None
	Senior Manager	R.O.C.	Wu, Wen-Chung	Male	2017.02.02	36,681	0.06	0	0	0	0	Department of Electronic Engineering at Ta Hwa University of Science and Technology Senior Engineer at WT	None	None	None	None	None

Job title (Note 1)	Nationality	Name	Gender	Date elected (taking office)	Number of shares held		Shareholding of spouse or minor children		Shareholding by nominee arrangement		Major education and experience (Note 2)	Concurrent positions at other companies	Managers who are spouse or blood relatives within the second degree			Remarks (Note 3)
					Number of shares	Shareholding (%)	Number of shares	Shareholding (%)	Number of shares	Shareholding (%)			Job title	Name	Relationship
													Microelectronics
Assistant Vice President of Finance and Accounting Department	Assistant Vice President (Principal Financial Officer)	R.O.C.	Lin, Chih-Feng	Male	2022.11.08	0	0	0	0	0	0	Institute of Economics at National Chi Nan University Manager at Deloitte & Touche CFO at Sun Max Tech Limited	None	None	None	None	None
	Manager (Principal Accounting Officer)	R.O.C.	Li, Ching-Yi	Female	2016.08.03	0	0	0	0	0	0	Department of Accounting at Soochow University Assistant Manager at Deloitte & Touche	None	None	None	None	None
Assistant Vice President of Operations Division	Assistant Vice President	R.O.C.	Chang, Kuei-Chen	Female	2014.04.02	38,000	0.06	0	0	0	0	HEC Liège Management School Customer service specialist at Wieson Technologies	None	None	None	None	None
	Assistant Vice President	R.O.C.	Wu, Hsun-Chien	Female	2011.06.01	2,375	0.00	0	0	0	0	Department of Accounting at National Taipei University of Business Sales assistant at Wei Chuan Foods Corporation Sales at Andai Technology Co., Ltd.	None	None	None	None	None
	Manager	R.O.C.	Wang, Yu-Ying	Female	2024.07.02	10,578	0.02	0	0	0	0	Department of Applied English, Mingdao University Assistant Purchasing Manager, Macnica Anstek Inc.	None	None	None	None	None
Information Department	Senior Manager	R.O.C.	Cheng, Lien-Hung	Male	2004.03.01	0	0	0	0	0	0	Department of Mining and Metallurgy at National Taipei University of Technology E-Commerce Project Manager at Trade-Van Information Services Co.	None	None	None	None	None
Audit Office	Assistant Manager	R.O.C.	Chen, Yi-Ting	Female	2025.11.11	3,000	0.00	0	0	0	0	Master's Degree, Graduate Institute of Accounting and Finance, National Dong Hwa University Manager at Deloitte & Touche Assistant Financing Manager, Macnica Anstek Inc.	None	None	None	None	Wang, Lung-Hao, originally Chief Audit Officer, position changed to Assistant Vice President of Operations Division on November 11, 2025. Chen, Yi-Ting was appointed on November 11, 2025.

Note 1: Shall include the information on the president, vice presidents, assistant presidents, managers of divisions and departments, and those whose positions are equivalent to the president, vice presidents or department directors shall also be disclosed, regardless of the position name.
Note 2: If an individual has worked at an accounting firm where the CPAs work or an affiliate thereof during the period disclosed above, please specify the job title and position.
Note 3: In the event that the Company's chairman and president or a position of the same level (top-level manager) are the same person, spouse or a first-degree relative, relevant information such as the reasons, rationality, necessity and future improvement measures must be disclosed (such as adding the seat number of independent directors, and there should be ways for majority directors who are not taking concurrent positions as employees or managers).

(III) Where the Chairman and the President or person in an equivalent position (top-level manager) are the same person, spouses, or relatives within the first degree of kinship, the reason for, reasonableness, necessity thereof, and countermeasures: None.

II. Remuneration paid during the most recent fiscal year to directors of the board, supervisors, the president and vice presidents

(I) Remuneration paid to directors and independent directors

Unit: Thousands of NTD

Job title	Name	Remuneration to directors							Total Remuneration (A+B+C=D) as a % of the Net Income (Note 10)	Remuneration for concurrent position as an employee								Sum of A, B, C, D, E, F and G and as a % of the net income after tax (Note 10)	Remuneration from investees other than subsidiaries or from the parent company (Note 11)
		Base Compensation (A) (Note 2)		Severance Pay and Pensions (B)		Compensation to Directors (C) (Note 3)		Allowances for Operation (D) (Note 4)			Base Compensation, Bonuses, and Allowances (E) (Note 5)		Severance Pay and Pensions (F)		Employees' Profit Sharing Bonus (G) (Note 6)
		The Company	From All Consolidated Entities (Note 7)	The Company	From All Consolidated Entities (Note 7)	The Company	From All Consolidated Entities (Note 7)	The Company	From All Consolidated Entities (Note 7)	The Company	From All Consolidated Entities (Note 7)	The Company	From All Consolidated Entities (Note 7)	The Company	From All Consolidated Entities (Note 7)	The Company		All companies in the financial statements (Note 7)		The Company	From All Consolidated Entities (Note 7)
																Cash amount	Stock amount	Cash amount				Stock amount
Chairperson	Wu, Wei-Kuo	0	0	0	0	506	506	18	18	524 0.34	524 0.34	4,221	4,221	0	0	854	0	854	0	5,599 3.66	5,599 3.66	None
Director	Lee, Jui-Si	0	0	0	0	906	906	18	18	924 0.60	924 0.60	8,556	8,556	0	0	854	0	854	0	10,334 6.76	10,334 6.76	None
Director	Chen, Fa-Yung	0	0	0	0	334	334	9	9	343 0.22	343 0.22	3,717	3,717	0	0	651	0	651	0	4,711 3.08	4,711 3.08	None
Director	Chou, Cho-Ting	0	0	0	0	289	289	9	9	298 0.19	298 0.19	3,503	3,503	0	0	515	0	515	0	4,316 2.82	4,316 2.82	None
Director	Cheng, Han	0	0	0	0	222	222	9	9	231 0.15	231 0.15	0	0	0	0	0	0	0	0	231 0.15	231 0.15	None
Director	Yang, Su-Fang	0	0	0	0	222	222	9	9	231 0.15	231 0.15	0	0	0	0	0	0	0	0	231 0.15	231 0.15	None
Independent director	Sun, Te-Chih	0	0	0	0	406	406	102	102	508 0.33	508 0.33	0	0	0	0	0	0	0	0	508 0.33	508 0.33	None
Independent director	Tan, Gin-Hwoe	0	0	0	0	406	406	102	102	508 0.33	508 0.33	0	0	0	0	0	0	0	0	508 0.33	508 0.33	None
Independent director	Wang, Tzu-Jou	0	0	0	0	234	234	51	51	285 0.19	285 0.19	0	0	0	0	0	0	0	0	285 0.19	285 0.19	None
Director	Chan, Chi-Kwong (Note 12)	0	0	0	0	173	173	9	9	182 0.12	182 0.12	0	0	0	0	0	0	0	0	182 0.12	182 0.12	None
Director	Lee, Jui-Fang (Note 12)	0	0	0	0	322	322	9	9	331 0.22	331 0.22	6,695	6,695	0	0	868	0	868	0	7,894 5.16	7,894 5.16	None
Independent director	Lin, Keng-Chou (Note 12)	0	0	0	0	173	173	57	57	230 0.15	230 0.15	0	0	0	0	0	0	0	0	230 0.15	230 0.15	None
Independent director	Lu, Yi-Hsuan (Note 12)	0	0	0	0	173	173	33	33	206 0.13	206 0.13	0	0	0	0	0	0	0	0	206 0.13	206 0.13	None

Please state the policy, system, standards and structure of remuneration payments to independent directors, and describe the relationship between the responsibility, risk, time committed to the organization and other factors and the amount of remuneration to them: Please see page 21 for the Company's policy on payment of remuneration to independent directors.
In addition to as disclosed in the above table, the remuneration received by the directors for their services provided (such as serving as a non-employee consultant for the parent company and all companies/re-investment listed in the financial reports) in the most recent fiscal year: None.

Remuneration Grade Table

Remuneration Paid to Directors	Name of director
	Total Remuneration (A+B+C+D)		Total Remuneration (A+B+C+D+E+F+G)
	The Company (Note 8)	From All Consolidated Entities (Note 9) H	The Company	From All Consolidated Entities (Note 9) I
Below NT$1,000,000	Wu, Wei-Kuo	Wu, Wei-Kuo
	Lee, Jui-Si	Lee, Jui-Si
	Chen, Fa-Yung	Chen, Fa-Yung
	Chou, Chu-Ting	Chou, Chu-Ting
	Cheng, Han	Cheng, Han	Cheng, Han	Cheng, Han
	Yang, Su-Fang	Yang, Su-Fang	Yang, Su-Fang	Yang, Su-Fang
	Sun, Te-Chih	Sun, Te-Chih	Sun, Te-Chih	Sun, Te-Chih
	Tan, Gin-Hwee	Tan, Gin-Hwee	Tan, Gin-Hwee	Tan, Gin-Hwee
	Wang, Tzu-Jou	Wang, Tzu-Jou	Wang, Tzu-Jou	Wang, Tzu-Jou
	Chan, Chi-Kwong (Note 12)	Chan, Chi-Kwong (Note 12)	Chan, Chi-Kwong (Note 12)	Chan, Chi-Kwong (Note 12)
	Lee, Jui-Fang (Note 12)	Lee, Jui-Fang (Note 12)
	Lin, Keng-Chou (Note 12)	Lin, Keng-Chou (Note 12)	Lin, Keng-Chou (Note 12)	Lin, Keng-Chou (Note 12)
	Lu, Yi-Hsuan (Note 12)	Lu, Yi-Hsuan (Note 12)	Lu, Yi-Hsuan (Note 12)	Lu, Yi-Hsuan (Note 12)
NT$1,000,000 (included) - NT$2,000,000 (excluded)
NT$2,000,000 (included) - NT$3,500,000 (excluded)
NT$3,500,000 (included) - NT$5,000,000 (excluded)			Chen, Fa-Yung	Chen, Fa-Yung
			Chou, Chu-Ting	Chou, Chu-Ting
NT$5,000,000 (included) - NT$10,000,000 (excluded)			Wu, Wei-Kuo	Wu, Wei-Kuo
			Lee, Jui-Fang (Note 12)	Lee, Jui-Fang (Note 12)
NT$10,000,000 (included) - NT$15,000,000 (excluded)			Lee, Jui-Si	Lee, Jui-Si
NT$15,000,000 (included) - NT$30,000,000 (excluded)
NT$30,000,000 (included) - NT$50,000,000 (excluded)
NT$50,000,000 (included) - NT$100,000,000 (excluded)
Over NT$100,000,000
Total	13 people	13 people	13 people	13 people

Note 1: The names of directors shall be listed separately (the names of institutional shareholders and their representatives shall be listed separately), and general directors and independent directors shall be listed separately, with various payment amounts disclosed in an aggregate manner. If a director concurrently serving as the president or the vice president shall be entered in this table or Table (3-1), or Tables (3-2-1) and (3-2-2) below.
Note 2: Refers to the directors' remuneration in the most recent year (including director salary, executive differential pay, severance pay, various bonuses, and incentives).
Note 3: This refers to the amount of director profit-sharing compensation approved by the board of directors for distribution for the most recent fiscal year (2025).
Note 4: This refers to director expenses and perquisites in the most recent fiscal year (including travel expenses, special disbursements, stipends of any kind, and provision of facilities such as accommodations or vehicles, etc.). When houses, cars, and other means of transportation or exclusive personal expenses are provided, the nature and costs of the assets provided and the actual cost or fair market value of rents, fuels, and other payments shall be disclosed. In addition, when a chauffeur is provided, please indicate the relevant payments made by the Company to the chauffeur, but such payments are not included in the remuneration.
Note 5: Refers to the salary, duty allowances, severance pay, various bonuses, incentives, honoraria, special allowance, various allowances, dormitory rooms, and company cars received by directors who serve as employees concurrently (including the president, vice presidents, other managers, and employees). When houses, cars, and other means of transportation or exclusive personal expenses are provided, the nature and costs of the assets provided and the actual cost or fair market value of rents, fuels, and other payments shall be disclosed. In addition, when a chauffeur is provided, please indicate the relevant payments made by the Company to the chauffeur, but such payments are not included in the remuneration. Salary and wages recognized in accordance with IFRS 2 Share-based Payments, including employee stock options and restricted stock awards acquired and shares for capital increased subscribed for, shall also be included in the remuneration.
Note 6: This refers to employee profit-sharing compensation (including stocks and cash) received by a director for concurrent service as an employee in the most recent fiscal year (including concurrent service as president, vice Presidents, other managerial officer, or non-managerial employee). The amount of profit-sharing compensation approved or expected to be approved by the board of directors for distribution for the most recent

fiscal year (2025) should be disclosed. If the amount cannot be forecasted, the amount expected to be distributed by calculating pro-rata to the amount that was actually distributed in the preceding fiscal year should be disclosed. If the amount cannot be forecasted, disclose the amount expected to be distributed by calculating pro-rata to the amount that was actually distributed in the preceding fiscal year. Table 1-3 should also be completed.

Note 7: The total amount of remuneration paid to the directors of the Company by all companies (including the Company) in the consolidated financial statements shall be disclosed.
Note 8: The names of the directors should be disclosed in the respective ranges into which they fall based on the sum total of the remuneration in the indicated categories paid to each director by the Company.
Note 9: The total amount of remuneration paid to each of the Company's directors by all companies (including the Company) in the consolidated financial statements shall be disclosed, with the name of each director disclosed in their applicable range.
Note 10: Net income after tax refers to the net income after tax of the parent company-only or individual financial statements for the most recent year.
Note 11: a. This column shall clearly indicate the amount of remuneration received by the directors of the Company from investees other than subsidiaries or from the parent company (if there is none, please fill in "None"). b. If a director of the Company receives a remuneration from a non-consolidated affiliates or the parent company, the amount shall be included in Field I of the appropriate range grade, and the field name should be changed to "Parent company and all non-consolidated affiliates". c. Remunerations refer to remuneration, compensation (including employee, director and supervisor compensation) and allowance for business operations received by the directors of the Company who serve as directors, supervisors or managing executives of the other non-consolidated affiliates that are not subsidiaries or the parent company.
Note 12: The Company conducted a full re-election of directors on May 28, 2025, with four directors (including independent directors) having been relieved of their office.
* The remunerations disclosed here in this Table are different from the incomes defined by the Income Tax Act. This Table is for the purpose of information disclosure and not for tax matters.

(II) Remuneration to supervisors: We held an election of new directors and supervisors on June 24, 2019 and established an Audit Committee to replace supervisors and perform the duties on their behalf.
(III) Remuneration paid to the president and vice presidents in the most recent year

Unit: Thousands of NTD

Job title	Name	Salary (A) (Note 2)		Severance and pension (B)		Bonus and allowance (C) (Note 3)		Remuneration to employees (D) (Note 4)				Sum of A, B, C, and D and as a % of the net income after tax (Note 8)
		The Company	All companies in the financial statements (Note 5)	The Company	All companies in the financial statements (Note 5)	The Company	All companies in the financial statements (Note 5)	The Company		From All Consolidated Entities (Note 5)		The Company	All companies in the financial statements (Note 5)
								Cash amount	Stock amount	Cash amount	Stock amount
CEO	Wu, Wei-Kuo	3,046	3,046	0	0	1,175	1,175	854	0	854	0	5,075
3.32	5,075
3.32	None
Deputy CEO	Lee, Jui-Si	5,124	5,124	0	0	3,432	3,432	854	0	854	0	9,410
6.15	9,410
6.15	None
President	Chen, Fa-Yung	2,409	2,409	0	0	1,308	1,308	651	0	651	0	4,368
2.86	4,368
2.86	None
Senior Vice President	Lee, Jui-Fang	4,164	4,164	0	0	2,531	2,531	868	0	868	0	7,563
4.94	7,563
4.94	None
Vice President	Chou, Chu-Ting	2,358	2,358	0	0	1,145	1,145	515	0	515	0	4,018
2.63	4,018
2.63	None

Regardless of the title, the positions that are equivalent to the president or vice president (such as president, CEO, department director) shall also be disclosed.

Remuneration Grade Table

Range of Remuneration Paid to the President and Vice Presidents	Name of President and Vice Presidents
	The Company (Note 6)	From All Consolidated Entities (Note 7) E
Below NT$1,000,000
NT$1,000,000 (included) - NT$2,000,000 (excluded)
NT$2,000,000 (included) - NT$3,500,000 (excluded)
NT$3,500,000 (included) - NT$5,000,000 (excluded)	Chen, Fa-Yung	Chen, Fa-Yung
	Chou, Chu-Ting	Chou, Chu-Ting
NT$5,000,000 (included) - NT$10,000,000 (excluded)	Wu, Wei-Kuo	Wu, Wei-Kuo
	Lee, Jui-Si	Lee, Jui-Si
	Lee, Jui-Fang	Lee, Jui-Fang
NT$10,000,000 (included) - NT$15,000,000 (excluded)

NT$15,000,000 (included) - NT$30,000,000 (excluded)
NT$30,000,000 (included) - NT$50,000,000 (excluded)
NT$50,000,000 (included) - NT$100,000,000 (excluded)
Over NT$100,000,000
Total	5 people	5 people

Note 1: The names of the President and Vice Presidents shall be listed separately, with the amounts of various payments disclosed in an aggregate manner. A director concurrently serving as the president or a vice president shall be entered in this table and Table (1-1) above or Tables (1-2-1) and (1-2-2).
Note 2: This includes salary, duty allowances, and severance pay to the president and vice presidents in the most recent fiscal year (2025).
Note 3: This includes the amounts of all types of rewards, incentives, travel expenses, special disbursements, stipends of any kind, provision of facilities such as accommodations or vehicle, and other compensation to the president and vice presidents in the most recent fiscal year (2025). When houses, cars, and other means of transportation or exclusive personal expenses are provided, the nature and costs of the assets provided and the actual cost or fair market value of rents, fuels, and other payments shall be disclosed. In addition, when a chauffeur is provided, please indicate the relevant payments made by the Company to the chauffeur, but such payments are not included in the remuneration. Salary and wages recognized in accordance with IFRS 2 Share-based Payments, including employee stock options and restricted stock awards acquired and shares for capital increased subscribed for, shall also be included in the remuneration.
Note 4: This refers to employee profit-sharing compensation (including stocks and cash) received by the president and vice presidents as approved or expected to be approved by the board of directors for the most recent fiscal year. If the amount cannot be forecasted, the amount for this year (2025) expected to be distributed by calculating pro-rata to the amount that was actually distributed in the preceding fiscal year should be disclosed. Table 1-3 should also be completed.
Note 5: The total amount of remuneration paid to the president and vice presidents of the Company by all companies (including the Company) in the consolidated financial statements shall be disclosed.
Note 6: The names of the president and vice presidents should be disclosed in the respective ranges into which they fall based on the sum total of the remuneration in the indicated categories paid to the president and vice presidents by the Company.
Note 7: The total amount of remuneration paid to each President and Vice President of the Company by all companies (including the Company) in the consolidated financial statements shall be disclosed, with the name of each President and Vice President disclosed in their applicable range.
Note 8: Net income after tax refers to the net income after tax of the parent company-only or individual financial statements for the most recent year (2025).
Note 9: a. This column shall clearly indicate the amount of remuneration received by the president and vice presidents of the Company from investees other than subsidiaries or from the parent company (if there is none, please fill in "None").
b. If the president or a vice president of the Company receives remuneration from investees other than subsidiaries or from the parent company, the remuneration received by the president or the vice president from investees other than subsidiaries or from the parent company shall be included in column E of the remuneration range table with said column renamed "Parent company and all investees."
c. Remuneration refers to the compensation, remuneration (including employee, director, and supervisor remuneration), and professional service fees received by the President or a Vice President of the Company for serving as directors, supervisors, or managers of investees other than subsidiaries or the parent company.
* The remunerations disclosed here in this Table are different from the incomes defined by the Income Tax Act. This Table is for the purpose of information disclosure and not for tax matters.

(IV) Remuneration to the five highest remunerated management personnel of a TWSE or TPEx listed company (individual disclosure of names and remuneration items)

Unit: Thousands of NTD

Job title	Name	Salary (A) (Note 2)		Severance and pension (B)		Bonus and allowance (C) (Note 3)		Remuneration to employees (D) (Note 4)				Sum of A, B, C, and D and as a % of the net income after tax (Note 6)
		The Company	All companies in the financial statements (Note 5)	The Company	All companies in the financial statements (Note 5)	The Company	All companies in the financial statements (Note 5)	The Company		All companies in the financial statements (Note 5)		The Company	All companies in the financial statements (Note 5)
								Cash amount	Stock amount	Cash amount	Stock amount
CEO	Wu, Wei-Kuo	3,046	3,046	0	0	1,175	1,175	854	0	854	0	5,075
3.32	5,075
3.32	None
Deputy CEO	Lee, Jui-Si	5,124	5,124	0	0	3,432	3,432	854	0	854	0	9,410
6.15	9,410
6.15	None
President	Chen, Fa-Yung	2,409	2,409	0	0	1,308	1.308	651	0	651	0	4,368
2.86	4,368
2.86	None
Senior Vice President	Lee, Jui-Fang	4,164	4,164	0	0	2,531	2,531	868	0	868	0	7,563
4.94	7,563
4.94	None
Vice President	Chou, Chu-Ting	2,358	2,358	0	0	1,145	1,145	515	0	515	0	4,018
2.63	4,018
2.63	None

Note 1: "Management personnel" in the "Five Highest Remunerated Management Personnel" means managerial officers of the Company. "Managerial officers" means those falling within the applicable scope defined in March 27, 2003 Order No. Tai-Cai-Zheng-III-0920001301 of the former Securities and Futures Commission, Ministry of Finance. The "five highest remunerated" is calculated as those ranked in the top five in remuneration based on the sum total of the amounts of salary, retirement pay and pension, rewards and special disbursements, and employee profit-sharing compensation (i.e., the sum of items A+B+C+D) received by each of the Company's managerial officers from all companies in the consolidated financial reports. If any concurrently serving director(s) is among those top, fill out this table and also Table (1-1) above.
Note 2: This includes salary, duty allowances, and severance pay of each of the five highest remunerated management personnel in the most recent fiscal year. (2025).
Note 3: This refers to the amount of all rewards, incentives, travel expenses, special disbursements, stipends of any kind, and provision of facilities such as accommodations or vehicles, and other remuneration of the five highest remunerated management personnel in the most recent fiscal year (2025). When houses, cars, and other means of transportation or exclusive personal expenses are provided, the nature and costs of the assets provided and the actual cost or fair market value of rents, fuels, and other payments shall be disclosed. In addition, when a chauffeur is provided, please indicate the relevant payments made by the Company to the chauffeur, but such payments are not included in the remuneration. Salary and wages recognized in accordance with IFRS 2 Share-based Payments, including employee stock options and restricted stock awards acquired and shares for capital increased subscribed for, shall also be included in the remuneration.
Note 4: This refers to employee profit-sharing compensation (including stocks and cash) received by the five highest remunerated management personnel in the most recent fiscal year. If the amount cannot be forecasted, the amount expected to be distributed by calculating pro-rata to the amount that was actually distributed in the preceding fiscal year (2025) should be disclosed. Table 1-3 should also be completed.
Note 5: The total amount of remuneration in each category paid to the five highest remunerated management personnel by all companies in the consolidated financial report (including the Company) should be disclosed.
Note 6: Net income after tax refers to the net income after tax of the parent company-only or individual financial statements for the most recent year (2025).
Note 7: a. This column should specifically disclose the amount of remuneration received by the five highest remunerated management personnel of the Company from investee enterprises other than subsidiaries or from the parent company (if none, state "None").
b. Remuneration means remuneration received by the five highest remunerated management personnel of the Company for serving in capacities such as director, supervisor, or managerial officer at investee companies other than subsidiaries or at the parent company, including base compensation, profit-sharing compensation (including employee, director, and supervisor profit-sharing compensation) and expenses and perquisites.
* The remunerations disclosed here in this Table are different from the incomes defined by the Income Tax Act. This Table is for the purpose of information disclosure and not for tax matters.

(V) Names of managers who are assigned employee compensation and the status of assignment

Unit: Thousands of NTD

Record date: March 29, 2026

| | Job title
(Note 1) | Name
(Note 1) | Stock amount | Cash amount | Total | Total as % of the Net Income |
| --- | --- | --- | --- | --- | --- | --- |
| Manager | CEO | Wu, Wei-Kuo | 0 | 7,084 | 7,084 | 4.63 |
| | Deputy CEO | Lee, Jui-Si | | | | |
| | President | Chen, Fa-Yung | | | | |
| | Vice President | Lee, Jui-Fang | | | | |
| | Vice President | Chou, Chu-Ting | | | | |
| | Assistant Vice President | Tan, Min-Li | | | | |
| | Assistant Vice President | Wu, Hsun-Chien | | | | |
| | Assistant Vice President | Chang, Kuei-Chen | | | | |
| | Assistant Vice President | Huang, Chun-Hao | | | | |
| | Assistant Vice President | Wu, Chun-Hsien | | | | |
| | Assistant Vice President | Pan, Chun-Ming | | | | |
| | Assistant Vice President | Lin, Chih-Feng | | | | |
| | Senior Manager | Lin, Shu-Hsien | | | | |
| | Senior Manager | Huang, Hsi-Yu | | | | |
| | Senior Manager | Kuo, Yi-Fei | | | | |
| | Senior Manager | Wu, Wen-Chung | | | | |
| | Senior Manager | Cheng, Lien-Hung | | | | |
| | Manager | Wang, Yu-Ying | | | | |
| | Manager | Li, Ching-Yi | | | | |

Note 1: Their individual names and titles shall be disclosed, but the profit paid out may be disclosed in an aggregate manner.
Note 2: This refers to the amount of employee profit-sharing compensation (including stocks and cash) received by the managerial officers as approved or expected to be approved by the board of directors for the most recent fiscal year. If the amount cannot be forecasted, the amount expected to be distributed by calculating pro-rata to the amount that was actually distributed in the preceding fiscal year (2025). Net income after tax refers to the net income after tax for the most recent year; if the International Financial Reporting Standards have been adopted, the net income after tax refers to the net income after tax in the parent company-only or individual financial statements for the most recent year.
Note 3: The scope of managers, subject to the definition under Letter Tai-Cai-Zeng-III No. 0920001301 dated March 27, 2003, as follows:
(1) President or an equivalent position
(2) Vice president or an equivalent position
(3) Assistant vice president or an equivalent position
(4) Head of the Finance Department
(5) Head of the Accounting Department
(6) Other persons who have the right to manage affairs and sign on behalf of the Company
Note 4: If any director, president, or vice president receives profit-sharing compensation (including stocks or cash), this table should be completed in addition to Table 1-2.

(VI) An analysis of the total remuneration paid to the Company's directors, supervisors, the president, and vice presidents as a percentage of the net income after tax in the parent company-only or individual financial report for the most recent two years, and a description of the remuneration policy, standard, and package, the procedure for determining the remuneration, and the association between business performance and future risks.

An analysis of the total remuneration paid to the Company's directors, the president, and vice presidents as a percentage of the net income after tax in the parent company-only or individual financial report for the most recent two years:

Unit: %

Job title\Year	2025		2024
	The Company	From All Consolidated Entities	The Company	From All Consolidated Entities
Directors and Audit Committee members	2.52	2.52	2.93	2.93
The President and Vice Presidents	10.43	10.43	11.10	11.10

Details of the remuneration policy, standard, and package, the procedure for determining the remuneration, and the association between business performance and future risks

(1) Remuneration to directors

As per Article 23 of the Articles of Incorporation, where the Company makes a profit for a fiscal year, it shall provide no higher than 2.5% of the year's net income before tax (before employee remuneration and directors' remuneration are deducted) for directors' remuneration. The amount shall be reviewed and discussed by the Remuneration Committee and then submitted to the Board of Directors for discussion and approval before being paid out, while being reported to the general shareholders' meeting.

(2) Remuneration to managers

Managers' remuneration is evaluated based on the Performance Evaluation and Remuneration Management Regulations and the Remuneration Committee Charter, and the remuneration to the president and vice presidents includes salary, bonuses, and employee remuneration and is paid out depending on the positions held and the responsibilities assumed.

(3) The remuneration to be distributed is determined based on the Company's financial position, operating performance, and future capital application needs, with the future risks taken into account to minimize potential risks. As of the publication date of this annual report, there were no existing incidents that might cause the Company to assume responsibilities, obligations, or liabilities in the future.

III. Implementation of corporate governance

(I) Operation of the board of directors

The Company conducted a complete re-election of directors on May 28, 2025. The term of office for the current Board of Directors from May 28, 2025 to May 27, 2028.
The board of directors had 3 (A) meetings in the most recent fiscal year (2025.05.28 to 2025.12.31), and the attendance of directors and independent directors was as follows:

Job title	Name (Note 1)	Actual Attendances in Person (B)	Attendances by Proxy	Actual Attendance Rate (%) (B/A) (Note)
Chairperson	Wu, Wei-Kuo	3	0	100%
Director	Lee, Jui-Si	3	0	100%
Director	Chen, Fa-Yung	3	0	100%
Director	Chou, Chu-Ting	3	0	100%
Director	Cheng, Han	2	1	67%
Director	Yang, Su-Fang	3	0	100%
Independent director	Sun, Te-Chih	3	0	100%
Independent director	Tan, Gin-Hwee	3	0	100%
Independent director	Wang, Tzu-Jou	3	0	100%
Other matters to be recorded:
I. If any of the following circumstances occurs in the operation of the board meetings, the date, session, content of motions, opinions of all independent directors, and the Company's handling of the opinions of independent directors shall be stated:
(I) Any matter under Article 14-3 of the Securities and Exchange Act: The Company has established an audit committee, and the provisions of Article 14-3 of the Securities and Exchange Act do not apply. For relevant information, please refer to “Operations of the Audit Committee” in this annual report.
(II) Other board resolutions to which objections or qualified opinions for the record or in writing are expressed by independent directors: None.
II. When there is recusal from conflicts of interest by a director, state the name of that director, the involved proposal, the reason for the recusal of conflicts of interest, and the participation in voting of that director:
(I) January 14, 2025 (1st board meeting in 2025)
Subject: Motion for amount of year-end bonus for managers for 2024.
Directors who recused themselves from the meeting: Lee, Jui-Si, Lee, Jui-Fang
Reasons for recusal and participation in voting: Directors Lee, Jui-Si, Lee, Jui-Fang recused themselves from the meeting prior to the discussion. The remaining directors present passed the motion unanimously after voting.
(II) May 28, 2025 (4th board meeting in 2025)
Subject: Motion for election of the Chairman and Vice Chairman
Directors who recused themselves from the meeting: Wu, Wei-Kuo, Lee, Jui-Si
Reasons for recusal and participation in voting: Independent Director Tan, Gin-Hwee nominated Director Wu, Wei-Kuo as Chairman and Lee, Jui-Si as Vice Chairman. Except for Directors Wu, Wei-Kuo and Lee, Jui-Si, all directors present unanimously elected Director Wu, Wei-Kuo as Chairman and Lee, Jui-Si as Vice Chairman.
Subject: Motion for appointment of the Company's managers
Directors who recused themselves from the meeting: Wu, Wei-Kuo, Lee, Jui-Si, Chen, Fa-Yung
Reasons for recusal and participation in voting: Directors Wu, Wei-Kuo, Lee, Jui-Si, Chen, Fa-

Yung, Cho recused themselves from the meeting prior to the discussion. The remaining directors present passed the motion unanimously after voting.

(III) August 12, 2025 (5th board meeting in 2025)

Subject: Motion for remuneration of the Company's newly appointed managers

Directors who recused themselves from the meeting: Wu, Wei-Kuo, Lee, Jui-Si, Chen, Fa-Yung, Chou, Chu-Ting

Reasons for recusal and participation in voting: CEO Wu, Wei-Kuo, Deputy CEO Lee, Jui-Si, President Chen, Fa-Yung, Cho, and Vice President Chou, Chu-Ting recused themselves from the meeting prior to the discussion. The remaining directors present passed the motion unanimously after voting.

Subject: Motion for the amount of employee remuneration for managers for 2024.

Directors who recused themselves from the meeting: Wu, Wei-Kuo, Lee, Jui-Si, Chen, Fa-Yung, Chou, Chu-Ting

Subject: Motion for amendment to the Company's "Management Measures for Performance Appraisal and Remuneration"

Directors who recused themselves from the meeting: Wu, Wei-Kuo, Lee, Jui-Si

Reasons for recusal and participation in voting: CEO Wu, Wei-Kuo and Deputy CEO Lee, Jui-Si recused themselves from the meeting prior to the discussion. The remaining directors present passed the motion unanimously after voting.

III. Information including the evaluation cycle and period(s) of the board of directors' self-evaluations (or peer evaluations) and the evaluation method and content:

Evaluation cycle	Evaluation period	Evaluation scope	Evaluation methods	Evaluation contents
Once a year	Evaluate the performance of the board during the period of January 1, 2025, to December 31, 2025.	Board of directors	Self-evaluation of the board of directors	1. Participation in the operation of the company 2. Quality of the board's decision making 3. Composition and structure of the board of directors 4. Election and continuing education of the directors 5. Internal control
Once a year	From December 2025 to January 2026, individual board members evaluated their own performance of the period from January 1, 2025, to December 31, 2025.	Each individual director	Self-evaluation of board members	1. Understanding of the objectives and missions of the Company 2. Understanding of the director's job responsibilities 3. Participation in the operation of the company 4. Internal relationship management and communication 5. Specialization and continuous education of the director 6. Internal control

IV. The goal of improving the performance of the board of directors in this year and the latest fiscal year (including the establishment of audit committee and improvement of the information transparency, etc.) and an analysis of implementation:

In order to establish good corporate governance practices and improve and strengthen the supervisory and management functions of the board of directors, the Company established an audit committee on June 24, 2019, and formulated the organizational charter of the Audit Committee for compliance in accordance with the [Regulations Governing Establishment of Internal Control Systems by Public Companies] and the [Regulations Governing the Exercise of Powers by Audit Committees of Public Companies].

The measurements of the Company's Rules for Performance Evaluation of Board of Directors cover the following five aspects:

① Participation in the operation of the Company.
② Improving the quality of the board's decision making.
③ Composition and structure of the board of directors.
④ Election and continuing education of directors.
⑤ Internal control.

The measurements of performance evaluation (self or peer) of board members should cover, at a minimum, the following six aspects:

① Understanding of the objectives and missions of the Company.
② Understanding of the director's job responsibilities.
③ Participation in the operation of the Company.
④ Internal relationship management and communication.
⑤ Specialization and continuous education of the director.
⑥ Internal control.

At the end of each year (once a year), the Administration Department collects relevant information on board activities and distributes the "Board of Directors (Functional Committee) Performance Self-Evaluation Questionnaire" or "Board Members (Self or Peer) Evaluation Questionnaire" to be filled out. The Administration Department then recovers all the questionnaires and compiles the results into reports to be submitted to the board for review and improvement.

The Board of Directors (Functional Committee) Performance Self-Evaluation Questionnaire and the Board Members (Self or Peer) Evaluation Questionnaire for 2025 were completed between 2025/12/01 and 2026/01/31. The indicators showed that the performance was considered good, and the self-evaluation results were announced on the Company's

website:https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/compensation-committee/

The term of the preceding Board of Directors was from May 25, 2022 to May 24, 2025. The board of directors had $\underline{3}$ (A) meetings in the most recent fiscal year (2025.01.01 to 2025.05.27), and the attendance of directors and independent directors was as follows:

Job title	Name (Note 1)	Actual Attendances in Person (B)	Actual Attendance Rate (%) (B/A) (Note)
Chairperson	Lee, Jui-Si	3	100%
Director	Lee, Jui-Fang	3	100%
Director	Chan, Chi-Kwong	3	100%
Director	Wu, Wei-Kuo	3	100%
Independent director	Lin, Keng-Chou	3	100%
Independent director	Sun, Te-Chih	3	100%
Independent director	Tan, Gin-Hwee	3	100%
Independent director	Lu, Yi-Hsuan	3	100%

Note 1: For directors and supervisors who are legal entities, the name of the corporate shareholders and their representatives shall be disclosed.
Note 2: (1) If a director or supervisor resigns before the year ends, the resignation date, the actual attendance rate $(\%)$ shall be calculated based on the number of board meetings and the number of actual attendances in person or attendances as a non-voting participant.
(2) If there is a re-election of directors and supervisors before the year ends, the newly-elected and incumbent directors and supervisors shall be listed. Their status of being the current, newly-elected or re-elected and the re-election date shall be noted in the remark field. The actual attendance rate shall be calculated based on the number of board meetings and the number of actual attendances $(\%)$ in person or attendances as a non-voting participant.

(II) Operations of the audit committee or the supervisors' participation in the board

The Company conducted a complete re-election of directors on May 28, 2025. The term of office for the current members began on May 28, 2025, it will end on May 27, 2028.
The Audit Committee held 2 (A) meetings in the most recent fiscal year (2025.05.28 to 2025.12.31). The record of the independent directors' attendances was as follow:

Job title	Name	Actual Attendances in Person (B)	Attendances by Proxy	Actual Attendance Rate (%) (B/A) (Note)
Convener	Tan, Gin-Hwee	2	0	100.00
Member	Sun, Te-Chih	2	0	100.00
Member	Wang, Tzu-Jou	2	0	100.00
Other matters to be recorded:
I. The date, session and motion content of Audit Committee meetings, objections, qualified opinions and content of significant recommendations of independent directors, the Audit Committee’s resolutions and the Company's handling of the Audit Committee's comments shall be specified under any one of the following circumstances:
(I) Matters specified in Article 14-5 of the Securities and Exchange Act:
Meeting date		Content of motions		All opinions expressed by independent directors, and the Company's handling of the opinions
2025.08.12		• The Company's Q2 2025 financial statements.
• Motion for pre-approved non-assurance services for 2025		Unanimous vote by all attending independent directors to approve the motion and submit it to the board for discussion.
2025.11.11		• The Company's Q3 2025 financial statements.
• Motion for change of chief internal auditor
• 2026 Annual Audit Plan
• Motion for amendment to the Company's "Payroll Cycle Internal Control Operations" and the corresponding "Internal Audit Implementation Rules"
• Amendment to the Company's "Payroll Cycle Internal Control Operations" and the corresponding "Internal Audit Implementation Rules"
2026.03.10		• The Company's 2025 financial statements and business report.
• The Company's earnings distribution proposal for 2025
• The Company's Statement on Internal Control System for 2025
• Regular assessment of the independence and suitability of CPAs, and public expense for 2026.
• Motion for amendment to the Company's "Accountant Performance Evaluation Guidelines"

(II) Except for the abovementioned matters, other resolutions which have not been passed by the Audit Committee but have been approved by more than two-thirds of all directors: Not applicable.
II. For the recusal of independent directors due to conflicts of interest, please state the name of the independent director, the content of motion, the reason for recusal and the participation in voting: Not

applicable.

III. Communication between independent directors and chief internal auditor and accountants:

The independent directors and chief internal auditor communicate with one another on the monthly audit reports or follow-up reports, and compile internal audit reports at the quarterly Audit Committee meetings. The independent directors can also contact one another through email or telephone or meet in person as needed, and may convene meetings at any time in case of major issues.

The independent directors have meetings with CPAs from time to time, and the contents of the meetings are recorded in meeting minutes.

The sole communication between the independent directors and the internal audit officers is as follows:

Date of communication	Matters to be communicated	Recommendations from independent directors
2025.08.12	• Report on internal audit operations	No objection.
2025.11.11	• Report on internal audit operations
• Change of chief internal auditor
• Report on 2026 audit plan
• Motion for amendment to the Company's "Payroll Cycle Internal Control Operations" and the corresponding "Internal Audit Implementation Rules"
• Amendment to the Company's “Payroll Cycle Internal Control Operations” and the corresponding “Internal Audit Implementation Rules”
2026.03.10	• Report on internal audit operations
• 2025 “Statement on Internal Control System”
• Motion for amendment to the Company's "Accountant Performance Evaluation Guidelines"

The sole communication between the independent directors and the CPAs is as follows:

Date of communication	Matters to be communicated	Recommendations from independent directors
2025.08.12	• Explained the review status and results of the Q2 2025 financial statements.
• Responded to and discussed the questions raised by people participating in the meeting.	No objection.
2025.11.11	• Explained the review status and results of the Q3 2025 financial statements.
• Responded to and discussed the questions raised by people participating in the meeting.
• Updates to the securities regulations
• Updates to the tax regulations
2026.03.10	• Explained the audit status and results of the 2025 financial statements.
• Description of audit quality indicators (AQI)
• Responded to and discussed the questions raised by people participating in the meeting.

Note 1: If a director or supervisor resigns before the year ends, the resignation date, the actual attendance rate (%) shall be calculated based on the number of board meetings and the number of actual attendances in person or attendances as a non-voting participant.
Note 2: If there is a re-election of independent directors before the year ends, the newly-elected and incumbent directors shall be listed. Their status of being current, newly-elected or re-elected independent directors and the re-election date shall be noted in the remark field. The actual attendance rate (%) shall be calculated based on the number of audit committee meetings and the number of actual attendances in person.

The term of the previous committee members was from May 25, 2022 to May 24, 2025.
The Audit Committee held 2 (A) meetings in the most recent fiscal year (2025.01.01 to 2025.05.27). The record of the independent directors' attendances was as follow:

Job title	Name	Actual Attendances in Person (B)	Attendances by Proxy	Actual Attendance Rate (%) (B/A) (Note)
Convener	Lin, Keng-Chou	2	0	100.00
Member	Sun, Te-Chih	2	0	100.00
Member	Tan, Gin-Hwee	2	0	100.00
Member	Lu, Yi-Hsuan	2	0	100.00
Other matters to be recorded:
I. The date, session and motion content of Audit Committee meetings, objections, qualified opinions and content of significant recommendations of independent directors, the Audit Committee’s resolutions and the Company's handling of the Audit Committee's comments shall be specified under any one of the following circumstances:
(I) Matters specified in Article 14-5 of the Securities and Exchange Act:
Meeting date		Content of motions		All opinions expressed by independent directors, and the Company's handling of the opinions
2025.03.11		• The Company's 2024 financial statements and business report.
• The Company's earnings distribution proposal for 2024
• Motion for the Company's 2024 “internal control statement”
• Regular assessment of the independence and suitability of CPAs, and public expense for 2025.		Unanimous vote by all attending independent directors to approve the motion and submit it to the board for discussion.
2025.05.06		• The Company's Q1 2025 financial statements.
(II) Except for the abovementioned matters, other resolutions which have not been passed by the Audit Committee but have been approved by more than two-thirds of all directors: Not applicable.
II. For the recusal of independent directors due to conflicts of interest, please state the name of the independent director, the content of motion, the reason for recusal and the participation in voting: Not applicable.
III. Communication between independent directors and chief internal auditor and accountants:
The independent directors and chief internal auditor communicate with one another on the monthly audit reports or follow-up reports, and compile internal audit reports at the

quarterly Audit Committee meetings. The independent directors can also contact one another through email or telephone or meet in person as needed, and may convene meetings at any time in case of major issues.

The independent directors have meetings with CPAs from time to time, and the contents of the meetings are recorded in meeting minutes.

The sole communication between the independent directors and the internal audit officers is as follows:

Date of communication	Matters to be communicated	Recommendations from independent directors
2025.03.11	• Report on internal audit status for Q4 2024
• Report on overdue accounts receivable tracking progress of Raitek. Ltd. Inc.
• 2024 “Statement on Internal Control”	No objection.
2025.05.06	• Report on status of internal audits for Q1 2025
• Report on overdue accounts receivable tracking progress of Raitek. Ltd. Inc.

The sole communication between the independent directors and the CPAs is as follows:

Date of communication	Matters to be communicated	Recommendations from independent directors
2025.03.11	• Explained the audit status and results of the 2024 financial statements.
• Description of audit quality indicators (AQI)
• Responded to and discussed the questions raised by people participating in the meeting.	No objection.
2025.05.06	• Explained the review status and results of the Q1 2025 financial statements.
• Responded to and discussed the questions raised by people participating in the meeting.

(III) Status of corporate governance implementation and the differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons

Issues to be assessed	State of implementation (Note)			Difference from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary Description
I. Does the Company follow the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies to establish and disclose its corporate governance practices?	☑		The Company established the Corporate Governance Best Practice Principles on June 13, 2013, and amendments thereto were approved by the Chairman on November 18, 2025, and ratified by the Board of Directors on March 10, 2026. Please refer to the Company's website Investor Relations - Corporate Governance - Important Company Procedures. https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/	No difference
II. Shareholding structure and shareholders' equity(I) Does the Company have internal operating procedures for handling shareholders' suggestions, concerns, disputes and litigation matters. If yes, have these procedures been implemented accordingly? (II) Does the Company possess a list of	☑☑		(I) The Company's spokesperson, acting spokesperson and shareholder services personnel handle related matters.(II) We have departments related to shareholder services handle matters pertaining principal shareholders. The information is also entered into the information reporting site	No difference

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
principal shareholders and beneficial owners of these principal shareholders?
(III) Has the Company built and executed a risk management system and firewalls between the Company and its affiliates?
(IV) Has the Company established internal rules prohibiting insider trading using undisclosed information?	☑		designated by the Securities and Futures Institute in accordance with laws and regulations for disclosure.

(III) We have formulated relevant internal control protocols in accordance with laws and regulations, and the duties of all personnel for property management are clearly defined, and there are no abnormal transactions.

(IV) We have formulated the Code of Ethics and Conducts, the Procedures for Handling Material Inside Information, and the Procedures for Ethical Management and Guidelines for Conduct, which specify that relevant personnel may not use undisclosed information they know to engage in insider trading, or disclose the information to others, so as to prevent them from using it to engage in insider trading. The relevant standards have been disclosed in the Investor section of the Company’s website under Corporate Governance → Key Company Bylaws. Please refer to the following website. https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/ | No difference

No difference |
| III. Composition and responsibilities of the board of directors
(I) Has the board established a diversity policy and specific | ☑ | | (I) The Company has formulated a diversity policy for the composition of the Board of Directors in Article 20 of the Corporate Governance Best Practice Principles, which stipulates that the number of directors concurrently serving as company managers | No difference |

Issues to be assessed	State of implementation (Note)	Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
Yes	No	Summary Description
management objectives, and have they been implemented accordingly?
Based on its diversification policy, and to strengthen corporate governance and promote the sound development of board composition and structure, the nomination of the Company's director candidates is conducted in accordance with the provisions of the Articles of Incorporation, utilizing a candidate nomination system. Candidates are evaluated based on their academic and professional qualifications, professional background, integrity, and relevant professional qualifications. After resolution by the Board of Directors, the candidates are submitted to the shareholders' meeting for election, and an appropriate diversity policy is formulated based on the Company's operations, operational model, and development needs. As a whole, the Board of Directors should possess the following: 1. Ability to make operational judgments, 2. Ability to perform accounting and financial analysis, 3. Ability to conduct management administration, 4. Ability to conduct crisis management, 5. Knowledge of the industry, 6. Vision of the global market, 7. Leadership, 8. Ability to make policy decisions, and 9. Risk management knowledge and ability.
The Company's current Board of Directors comprises nine directors, of which 44% are employee directors, 33% are independent directors, and 33% are female directors.
Board diversity policy management objectives of the Company:
Goals for diversified policy management	Achievement status
Less than half of the independent directors have served three terms or less.	Achieved
At least one-half of the seats are held by independent directors

Issues to be assessed	State of implementation (Note)	Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
Yes	No	Summary Description

The number of director seats not concurrently held by company managers is greater than the number of director seats concurrently held by company managers.	Achieved
At least one female director	Achieved
The implementation of the diversity policy of board members:
Name of director	Gender	Concurrent serving as an employee of the Company
40 to 50	50 to 60	60 to 70
Wu, Wei-Kuo	Male	V
Lee, Jui-Si	Male	V
Cheng, Han	Female
Yang, Su-Fang	Female
Chen, Fa-Yung	Male	V
Chou, Chu-Ting	Male	V
Wang, Tzu-Jou	Female
Sun, Te-Chih	Male
Tan, Gin-Hwee	Male
Name of director	Professional background	Industry experience
Name of director	Finance and accounting	Laws
Wu, Wei-Kuo
Lee,

Issues to be assessed	State of implementation (Note)														Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
	Yes	No	Summary Description
			Jui-Si
			Cheng, Han	V		V	V	V	V	V	V	V	V	V
			Yang, Su-Fang	V		V	V	V	V	V	V	V	V	V
			Chen, Fa-Yung			V	V	V	V	V	V	V	V	V
			Chou, Chu-Ting			V	V	V	V	V	V	V	V	V
			Wang, Tzu-Jou	V			V	V	V	V		V	V	V
			Sun, Te-Chih		V		V	V	V	V		V	V	V
			Tan, Gin-Hwee			V	V	V	V	V	V	V	V	V
(II) Other than the Remuneration Committee and the Audit Committee which are required by law, does the Company plan to voluntarily set up other functional committees? (III) Has the Company	✓		(II) The Company has established the Remuneration Committee and Audit Committee. Voluntary establishment: The Sustainable Development Committee was established on August 2, 2024. The Risk Management Committee was established on November 11, 2025.												No difference
	✓		(III) The Company has formulated the Rules for Performance Evaluation of Board of												No difference

Issues to be assessed	State of implementation (Note)			Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
	Yes	No	Summary Description
established its Rules for Performance Evaluation of Board of Directors and the evaluation methods, conducted the performance appraisal regularly every year and provided the results to the board as the reference for directors' remuneration and nomination and renewal?(IV) Does the Company regularly assess its external auditors' independence?	✓	Directors and the evaluation methods, which are evaluated by the Remuneration Committee on a regular basis (once a year), and the recommendations are then submitted to the board for discussion. The proposal for the 2025 board performance evaluation has been approved by the Remuneration Committee on March 10, 2026, and then submitted to the board for deliberation on March 10, 2026.		No difference
		(IV) The Company assesses the independence of certified accountants every year. The assessment results for 2025 have been reviewed and approved by the board on March 11, 2025. Based on the evaluation, both CPA Chang, Zheng-Dao and CPA Yang, Hung-Bin of Ernst & Young were found to be independent and suitable, with no concerns (Note).(Note) Supplementary descriptions of main assessment items are as follows:
		Issues to be assessed	Assessment results
		1. There was no direct or material indirect financial interest relationship between the CPAs and the Company.	Yes ☐ No
2. There was no significant close business relationship between the attesting CPA and the Company.	Yes ☐ No
3. The CPAs had no potential employment relationships with the Company during	Yes ☐ No

State of implementation (Note)
Yes	No	Summary Description
		the audit.
		4. There were no loans between the attesting CPA and the Company.	Yes☐No
		5. The CPAs did not hold any shares of the Company.	Yes☐No
		6. Not relatives of the Company's directors, supervisors, managers, or persons who had significant influence on the audit engagement.	Yes☐No
		7. Did the CPAs comply with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China No. 10 regarding independence and obtain a statement of independence issued by the CPAs?	Yes☐No
		8. The CPAs had not provided the Company with audit services for seven consecutive years.	Yes☐No
		9. The CPAs had not accepted any gifts or presents of significant value from the Company or its directors and managers, exceeding normal social customs.	Yes☐No
		10. The CPAs, their spouses or dependent relatives, and the audit team have not served as Company directors or managers, nor have they held positions of significant influence on audit engagements during the audit period or in the past two years; furthermore, they shall not hold such related positions in future audit periods.	Yes☐No
		11. Whether the firm's audit quality indicator (AQI) reference document has been obtained.	Yes☐No
		12. Whether the appointed auditor had been subject to disciplinary or punitive action in the past year.	Yes☐No
		13. Did the appointed auditors audit the Company's financial position and internal control regularly as required by the competent authority and issue an internal control recommendation letter?	Yes☐No
		14. Was there any other listed company that the CPA had accepted an appointment from, and did it have the same or a similar business scope as this company?	Chang, Zheng-Dao: Galaxy (6227) Yang, Hung-Bin: Galaxy (6227)

Issues to be assessed	State of implementation (Note)			Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
	Yes	No	Summary Description

IV. Has the Company allocated qualified and sufficient number of personnel and appointed managers in charge of corporate governance affairs (including but not limited to furnishing information required for business execution by directors and supervisors, handling matters relating to board meetings and shareholder meetings according to laws, recording minutes of board meetings and shareholder meetings, etc.)?	☑		The Company's Board of Directors has established a Sustainable Development Committee and a corporate governance task force, and it resolved to appoint the current Assistant Vice President of General Administration as the corporate governance officer in May 2023 to supervise the corporate governance task force in carrying out related matters. The corporate governance team consists of qualified financial, stock affairs, and legal personnel. It is responsible for providing directors with the information they need to perform their duties, handling matters related to the Board of Directors, committees, and shareholders’ meetings, and preparing the minutes of each meeting.	No difference
V. Has the Company established communication channels with	☑		The Company strives to maintain a balance of rights and obligations with all stakeholders (including shareholders, employees, customers, upstream and downstream suppliers, banks, creditors, etc.), and this is handled by the relevant departments. To effectively respond to and handle issues of concern to stakeholders, the Company has a spokesperson and has set up a	No difference

Issues to be assessed	State of implementation (Note)			Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
	Yes	No	Summary Description
stakeholders (including but not limited to shareholders, employees, customers, and suppliers) and set up an area dedicated to stakeholders on the Company website, and does the Company respond appropriately to corporate social responsibility issues that stakeholders consider important?			stakeholder section on its official website to provide contact information for communication. For more information, please refer to the following website: https://www.macnica.com/apac/anstek/zh_tw/investors/stake-holders/investor-relations/
VI. Has the Company commissioned a shareholder service agent specializing in shareholder services to handle shareholder meeting matters?	☑		The Company's stock transfer agent: Fubon Securities Co., Ltd. – Stock Transfer Department.	No difference
VII. Information disclosure (I) Has the Company established a public website to disclose	☑		(I) We maintain a public website where we regularly disclose and update the Company’s financial, operational, and corporate governance information for review by investors. https://www.macnica.com/apac/anstek/zh_tw/investors/financials/	No difference

Issues to be assessed	State of implementation (Note)			Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
	Yes	No	Summary Description
operational, financial, and corporate governance information?
(II) Has the Company adopted other methods of information disclosure (e.g., setting up a website in English, designating a specialist responsible for gathering and disclosing Company information, setting up a spokesperson system, uploading recordings of investor conferences onto the Company website)?
(III) Has the Company published and reported its annual financial report within two months after the end of a fiscal year, and	☑		(II) The Company has designated personnel responsible for the collection and disclosure of information through various channels such as the Market Observation Post System, the Company’s website, annual reports, and ESG reports (including audio and video recordings of investor conferences). The Company has also appointed spokespersons and acting spokespersons to implement the spokesperson system.	No difference
	☑		(III) The 2025 financial report was reviewed and approved by the Audit Committee and approved by the board on March 10, 2026, and then announced and declared on March 12, 2026. The Company's Q1, Q2 and Q3 financial reports and the operational status of each month are announced and declared within the specified statutory deadline.	No difference

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
published and reported its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline?
VIII. Does the Company have other important information to facilitate better understanding of the Company's corporate governance practices (including but not limited to the current status of employee rights, employee care, investor relations, supplier relations, stakeholder rights, director and supervisor continuing education, risk management policies, and risk measurement	☑	(I) Enhance corporate value
In order to optimize internal operations and external communication and enhance the Company's substantial value, we have formulated the "Corporate Value Enhancement Plan" to enhance operational resilience by improving capital utilization efficiency, optimizing dividend policies, and strengthening core competitiveness. The plan was submitted to the Board of Directors for approval on November 11, 2025.

(II) Board members and key management succession plan
The Company has formulated the Board Members and Key Management Succession Plan to implement governance practices and enhance operational resilience. The plan aims to establish a talent pipeline and avoid key personnel or business interruption risks, while also enhancing investor and stakeholder confidence and stabilizing supplier relationships. This plan was formulated on December 1, 2025, and implemented after approval by the President.

(III) Strengthen risk management
In order to strengthen risk management and enhance the ability to identify and respond to risks, the Company established the "Risk Management Committee" on November 11, 2025, which was approved by the Board of Directors. The Committee consists of three directors (including two independent directors) and one company executive. The | | |

Issues to be assessed	State of implementation (Note)			Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
	Yes	No	Summary Description
standards as well as the implementation of client policies and the Company's purchase of liability insurance for its directors and supervisors)?			Committee identified the relevant operational risks based on financial materiality and frequency of occurrence, and subsequently promoted response strategies with various departments.

(IV) Optimize information security
To protect important information such as customer transactions, confidential technical documents of agency products, and company operations, the Company initiated the "ISO 27001 information security management system" introduction project on October 13, 2025. The Vice Chairman led cross-functional members to form an information security management team, and established the relevant system processes such as documents, venues, access control, risk management and countermeasures according to the standards. Information security internal auditors were deployed through education and training, and the Company will obtain third-party certification in 2026.

(V) Maintain investor relations
The Company attaches great importance to shareholder rights and has dedicated personnel to answer individual shareholder questions in detail. In addition, directors and major shareholders regularly attend board meetings to ensure that investors understand the Company's operating performance and development strategies. The Company adheres to the principles of complete, timely, accurate, and transparent financial information disclosure. In recent years, the Company's operations have been stable, with excellent performance in dividend distribution, return on equity, and dividend yield.

(VI) Supplier relations and customer satisfaction
The Company upholds the corporate culture of "responsibility, persistence, improvement, and sharing," and it continues to maintain a high level of "customer satisfaction." In business dealings with suppliers and customers, we strictly abide by | |

Issues to be assessed	State of implementation (Note)	Difference from the Corporate Governance Best Practice Principles for TWSE/ TPEX Listed Companies and the reasons
Yes	No	Summary Description

Job title	Name	Organizer
Chairperson	Wu, Wei-Kuo	Taiwan Corporate Governance Association
2. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act	3
Director	Lee, Jui-Si	Taiwan Corporate Governance Association
2. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act	3
Director	Chen, Fa-Yung	Taiwan Corporate Governance Association
2. Corporate Innovation and Growth with AI
3. Corporate Governance Officer and Board	3

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
					“	Members
4. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act	3
			Director	Chou, Chu-Ting	Taiwan Corporate Governance Association
“
“
“	1. Leverage Sustainable Thinking to Build Diverse Growth Engines: Strategic Practice Transforming Risks Into Opportunities
2. Corporate Innovation and Growth with AI
3. Corporate Governance Officer and Board Members
4. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act	3
3
3
3
			Director	Cheng, Han	Taiwan Corporate Governance Association
“
National Federation of Certified Public Accountants
Associations of the Republic of China	1. Leverage Sustainable Thinking to Build Diverse Growth Engines: Strategic Practice Transforming Risks Into Opportunities
2. Emerging Financial Crime Trends, Cases, and Anti-Money Laundering Prevention Responses	3
3
			Director	Yang, Su-Fang	Taiwan Corporate Governance Association
“
National Federation of Certified Public	1. Leverage Sustainable Thinking to Build Diverse Growth Engines: Strategic Practice Transforming Risks Into Opportunities
2. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act
3. Criminal Legal Risk Analysis for CPAs –	3
3
3

State of implementation (Note)
Yes	No	Summary Description
				Accountants Associations of the Republic of China	Starting From “Loss Recognition” in the IBF Fraud Case 4. Legal Liabilities for Greenwashing in Sustainability Reports	3
		Independent director	Sun, Te-Chih	Taiwan Corporate Governance Association	1. Leverage Sustainable Thinking to Build Diverse Growth Engines: Strategic Practice Transforming Risks Into Opportunities 2. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act	3
		Independent director	Tan, Gin-Hwee	Taiwan Corporate Governance Association	1. Leverage Sustainable Thinking to Build Diverse Growth Engines: Strategic Practice Transforming Risks Into Opportunities 2. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act	3
		Independent director	Wang, Tzu-Jou	Taiwan Corporate Governance Association	1. Leverage Sustainable Thinking to Build Diverse Growth Engines: Strategic Practice Transforming Risks Into Opportunities 2. “Analysis of Money Laundering Risks and Fraud Techniques in the Payment Industry” and “The Role and Responsibility of the Board of Directors in ESG” for Corporate Governance 3. Duties and Responsibilities of the Company, Directors, and Supervisors Under the Securities and Exchange Act	3

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
			(VIII) We have purchased liability insurance policies for directors (including independent directors).
IX. Please explain improvements that have been made as well as priorities to improve the results of the Corporate Governance Evaluation issued by the Taiwan Stock Exchange Corporate Governance Center: (No need to fill this out if not listed as a rated company)	The Company has made improvements in accordance with the results of the corporate governance evaluation by the Taiwan Stock Exchange for 2024. The items for improvement are as follows:
● Establishment of the financial and business operational guidelines between related parties.
● Plan to improve corporate value.
● Strengthen regulations and public awareness campaigns related to preventing insider trading.
● Enhancement of board diversity.
● Succession planning for members of the Board of Directors and key management personnel.
● Disclosure of the professional qualifications and experience of the Audit Committee and the Remuneration Committee members, as well as their annual work priorities and operations.
● Established a Risk Management Committee and disclosed the risk management organizational structure, risk management procedures, and their operational status.
● Strengthened the information security risk management framework, policies, and specific management plans, and implemented the ISO 27001 system
● Disclosure of the dedicated sustainability unit, sustainability risk assessment, and progress on promotion efforts.
● Disclosure of a dedicated corporate integrity unit and the related implementation status.
● Establishment of annual corporate sustainability promotion plan and results.
● Formulation of a human rights protection policy and specific management plan, and disclosure of relevant policies and the implementation status.
● Disclosure of water consumption and total waste weight, management policies, reduction targets, and promotion measures for the past two years.
● Enhanced the corporate environmental management regulations and internal communication.
● Disclosure of ethical management policy approved by the Board of Directors and the implementation status.

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
	● Formulation of supplier management policy.
● Enhancement of information related to the Task Force on Climate-Related Financial Disclosures (TCFD) disclosure framework, covering governance, strategy, risk management, metrics, and targets.
● Promotion of workplace diversity and gender equality policies and disclosure of the implementation status.
● Assessment of risks or opportunities for the community, with corresponding measures taken: Local and neighboring personnel are hired.
● Conducted a voluntary inventory and disclosed GHG Scope 1 and Scope 2 emissions for the past two years, as well as Scope 3 emissions by category for the past year.
● Formulation of GHG reduction management policies, including reduction targets, promotion measures, and achievement status.
● Development of an energy management plan and disclosure of the implementation status.
● Formulation of an employee training and development plan to enhance the career skills of employees and disclosure of the implementation status.
● Conducting employee satisfaction surveys and disclosure of the implementation status and improvement plans.
● Formulation of a personal data protection policy and disclosure of its contents and how it is implemented.
● Formulation of a customer rights policy.
● Establishment of the Sustainable Development Committee at the level of the Board of Directors, and disclosure of its composition, responsibilities, and operations.
The above improvement items were completed and disclosed on January 16, 2026, and the corporate governance evaluation was completed in 2025. However, as of the annual report publication date, the evaluation results had not yet been released. The Company has continued to actively respond to evaluation items in order to strengthen its operational quality and protect shareholders’ rights and interests.

Note: Regardless of whether the “Yes” or “No” box is checked, the state of implementation be stated in the summary description field.

(IV) If the Company has established a remuneration committee or nomination committee, please disclose its composition, responsibilities and operations

We have set up a remuneration committee, and three independent directors serve as members of the Remuneration Committee. Its duties are to formulate and regularly review the policies, systems, standards and structure of performance appraisal and salary remuneration of directors and managerial officers. The committee holds at least two meetings a year.

In accordance with the relevant regulations stipulated by the Securities and Futures Bureau of the Financial Supervisory Commission, the professional qualifications, experience and independence of the members of the Remuneration Committee are listed in the following table:

December 31, 2025

| Criteria
Title Name | | Professional qualifications and experience | Independence | Number of other public companies where the director concurrently serves as a remuneration committee member | Remarks |
| --- | --- | --- | --- | --- | --- |
| Independent director (Convener) | Sun, Te-Chih | Please refer to page 8
II. (I) Profile of directors and supervisors | None | Re-elected for this term | |
| Independent director | Tan, Gin-Hwee | | | None | Re-elected for this term |
| Independent director | Wang, Tzu-Jou | | | None | Newly elected |
| Independent director | Lin, Keng-Chou | | | None | Retired upon expiration of previous term |

Operations of the Remuneration Committee

(1) The Remuneration Committee has 3 members.
(2) Term of office for this term: May 28, 2025, to May 27, 2028. The Committee has held 1 meetings (A) in the most recent fiscal year (2025.05.28 to 2025.12.31). The qualifications and attendance of the members are shown as follows:

Job title	Name	Actual Attendances in Person (B)	Attendances by Proxy	Actual Attendance Rate (%) (B/A) (Note)	Remarks
Convener	Sun, Te-Chih	1	0	100.00
Member	Tan, Gin-Hwee	1	0	100.00
Member	Wang, Tzu-Jou	1	0	100.00
Other matters to be recorded:
I. If the board of directors does not adopt or amends the recommendations from the Remuneration Committee, it shall clarify the date, session, content of the motion and resolution of the board and how the Company handles the recommendations of the Committee (such as that the salary and remuneration approved by the board are better than what the Committee recommended, and the differences and reasons should be clarified): Not applicable.
II. If the Committee members have objections or reservations and there are records or written statements from the meetings, the date, term, content of the motion, opinions of all members and the handling of their opinions shall be clearly stated: Not applicable.
III. The discussions and results of committee resolutions and the Company's handling of the opinions from the Remuneration Committee in 2025:
Meeting date		Motion		Resolution	Response by the Company
2025.08.12		• Motion for remuneration of the Company's newly appointed managers
• Motion for salary adjustment of the Company's managers for 2025
• Motion for the amount of employee remuneration for managers for 2024		Unanimous vote by all attending committee members to approve the motion after it was submitted to the	Unanimous vote by all attending directors to approve the motion after it was submitted to the

	• Motion for amendment of the Management Measures for Performance Appraisal and Remuneration	motion.	board for discussion.

Note: (1) If a Remuneration Committee member resigns before the year ends, the resignation date, the actual attendance rate shall be calculated based on the number of committee meetings and the number of actual attendances in person or attendances as a non-voting participant.
(2) If there is a re-election of the Remuneration Committee before the year end, the newly-elected and incumbent committee members shall be listed. Their status of being current, newly-elected or re-elected committee members and the re-election date shall be described in the remark field. The actual attendance rate shall be calculated based on the number of remuneration committee meetings and the number of actual attendance in person.

(3) Term of office for the previous term: May 25, 2022, to May 24, 2025. The Committee has held 2 meetings (A) in the most recent fiscal year (2025.01.01 to 2025.05.27). The qualifications and attendance of the members are shown as follows:

Job title	Name	Actual Attendances in Person (B)	Attendances by Proxy	Actual Attendance Rate (%) (B/A) (Note)
Convener	Tan, Gin-Hwee	2	0	100.00
Member	Lin, Keng-Chou	2	0	100.00
Member	Sun, Te-Chih	2	0	100.00
Other matters to be recorded:
I. If the board of directors does not adopt or amends the recommendations from the Remuneration Committee, it shall clarify the date, session, content of the motion and resolution of the board and how the Company handles the recommendations of the Committee (such as that the salary and remuneration approved by the board are better than what the Committee recommended, and the differences and reasons should be clarified): Not applicable.
II. If the Committee members have objections or reservations and there are records or written statements from the meetings, the date, term, content of the motion, opinions of all members and the handling of their opinions shall be clearly stated: Not applicable.
III. The discussions and results of committee resolutions and the Company's handling of the opinions from the Remuneration Committee in 2025:
Meeting date	Motion		Resolution	Response by the Company
2025.01.14	• Motion for the amount of managers’ 2024 year-end bonus		Unanimous vote by all attending committee members to approve the motion.	Unanimous vote by all attending directors to approve the motion after it was submitted to the board for discussion.
2025.03.11	• Motion for the 2024 performance appraisal of the board and audit personnel
• Motion for the 2024 remuneration allocation of employees and directors

Profiles of nomination committee members and information on the operation of the committee: As of the publication date of the annual report, the Company has not established a nomination committee.

(V) Status of promotion of sustainable development and its difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
I. Has the Company established a governance structure to promote sustainable development, and set up a dedicated (or concurrent) unit to promote sustainable development, with the board authorizing the senior management to manage the organization which is supervised by the board?	✓		The highest decision-making body for sustainable development-related issues: Board of Directors
Dedicated sustainability unit: Sustainable Development Committee (2024)
Members of the implementation unit: Sustainability Implementation and functional task force
Implementation in 2025:
• Optimized various management procedures and guidelines of the Company
• Strengthened sustainability information disclosure and improved corporate governance evaluation performance
• Organizational GHG inventory conducted in accordance with ISO 14064-1
• Set environmental sustainability reduction target
• Strengthened risk management and climate adaptation
• Launched the 2025 Sustainability Report preparation
• Frequency of Board reports: Twice a year, increasing to four times a year in 2026.	No significant differences.
II. Has the Company conducted risk assessments on environmental, social and corporate governance issues related to the Company's operations in accordance with the materiality principle, and formulated relevant risk management policies and strategies? (Note 2)	✓		Risk assessment boundary: Macnica Anstek as an entity (including its Xizhi Headquarters, Taoyuan Warehouse, Hsinchu Office, Taichung Office, and Kaohsiung Office – a total of 5 locations)
Risk assessment method: To identify various risks based on material issues concerning the Company’s stakeholders, in conjunction with financial and operational materiality.
Risk management:	No significant differences.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
			Risk category	Risk description	Risk management strategies
			Environmental sustainability
Environmental sustainability	GHG emissions and energy consumption control	Conduct a GHG inventory in accordance with ISO 14064-1 to understand current emission levels and hotspots, and develop subsequent plans for reducing fuel consumption, power usage, water use, and waste generation.
Continue to promote energy and resource conservation, as well as reduction of operational emissions through everyday actions, such as turning off lights, saving water, sorting waste, and recycling.
				Increase waste treatment volume/ lower recycling rate	Continued advocacy for trash classification and resource recycling and reuse. Office supplies are being replaced with eco-friendly alternatives, such as using recycled copy paper, adopting reusable eco-friendly materials for shipping packaging, and selecting office equipment with eco-friendly or energy-saving labels.
				Power shortage
Water shortage	Power shortage: In case of a power shortage, power will be supplied by the generator. The critical server room is equipped with an uninterruptible power supply (UPS) system to prevent data damage or loss.
Water shortage: The Company is located in a relatively low-risk area regarding water resources. If a water shortage occurs, the water tower can provide enough water for one to two days.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
				Earthquake, typhoon, flood	When selecting locations for the Company's operational sites and equipment layout, consideration is given to whether the sites are seismic and flood-resistant. Low-lying coastal areas are avoided to avoid natural disaster risks. The group personal accident insurance, fire insurance, and transportation insurance have been purchased for employees, buildings, and goods to enhance protection.
			Social prosperity	Reduce accidents	In case of work-related injuries or accidents during commutes that result in injury, the following measures will be taken:
1. In case of occupational accidents in the workplace, the Company shall take the necessary first-aid measures on site, then subsequently conduct surveys and establish preventive measures to avoid recurrence.
2. The employer shall report to the labor inspection agency within eight hours of becoming aware of any work incident that results in any of the following: a fatal accident, injury to three or more persons, or hospitalization of 1 or more persons.
3. Take care of colleagues and assist them in applying for insurance and labor insurance sickness and injury benefits.
4. Labor health service personnel and occupational safety personnel shall assess the symptoms of colleagues and refer them to an occupational medicine outpatient clinic in a timely manner.

Promotion Item	State of implementation (Note 1)	Difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
Yes	No	Summary Description

1. The Company subsidizes annual employee health checkups to help employees monitor their health and respond to any issues promptly.
2. A flexible leave welfare system is provided periodically to encourage work-life balance among employees.
High turnover rate (facing labor shortage)	1. New recruits: Regularly check in on new recruits’ work and how they are adjusting, and communicate with them promptly to help them integrate into the Company.
2. Resigned employees: Conduct exit interviews to explore the reasons for resignation in detail and develop countermeasures.
3. Optimize employer brand continuously: Strengthen various types of employee benefits, improve the work environment, and enhance employer brand image.
Corporate governance	Enhance ethical integrity	Internal: Every year, the Company conducts training on ethical management and moral conduct and administers tests to ensure effective implementation.
External: Fully disclose the code of conduct and whistleblowing system related to ethical management, and establish a reporting mechanism to ensure that all stakeholders can comply with regulations and assist in oversight.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
			Insufficient supply chain resilience	The Company adopts a dual strategy in terms of supply chain management and market expansion:
Enhance supplier partnership and product portfolio
● Deepen cooperation to create a win-win situation: The Company actively maintains good relations with the original manufacturers and invests field application engineer (FAE) resources in design-in to deliver positive results, thereby sustaining a mutually beneficial cooperative model.
● Expand the agency product line: While maintaining existing suppliers, the Company is also actively developing new product agency rights with potential to increase product diversity.
● Response to changes in agency authority: As a member of the MACNICA group, the Company addresses uncertainties in agency authority resulting from supplier consolidation or operational issuesby leveraging the Group’s international resources and local service strengths.
Respond to global supply chain challenges
● Uncertainty response: Supply chain uncertainty has increased significantly in recent years due to factors such as the US-China trade war and the pandemic, causing significant impacts on business compliance risk and various industries.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
			Insufficient supply chain resilience	● Customer assurance: To mitigate the impact of trade disruptions and the risk of supply shortages from suppliers, the Company has taken stocking measures to satisfy customer demand.
● Compliance with the regulatory requirements: The Company actively abides by government regulations to ensure relevant products are delivered within the specified timeframe.
			Maintain product quality	Supply chain and customer relationship management highlights
● Quality management and rights protection: Continuously track supplier product quality control to ensure its appropriateness. Protect the Company's right to return defective products.
● Market demand and purchasing strategy: Strengthen communication with customers to facilitate internal adjustments to the Company’s purchasing plan.
● Environmental regulatory compliance: If customers have specific environmental regulatory standards for products, the Company should actively coordinate with suppliers to meet customer needs.
			Information disclosure transparency	The Company follows the regulations set forth by the competent authority and discloses relevant information <18160on the Market Observation Post System, annual reports, ESG reports, and official website for the convenience of all stakeholders.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
				Information security incidents occurrence	1. Introduce the ISO 27001 information security management system to strengthen management systems and processes.
2. The Company conducts cybersecurity risk assessments every year and implements risk improvement plans for high-risk items.
3. Cybersecurity incident reporting and drills are conducted annually.
4. Regular simulated backup and recovery drills are conducted every year.
5. Internal promotion and occasional use of phishing emails, social engineering, or quizzes for employee training to enhance information security awareness.
III. Environmental issues
(I) Has the Company established an environmental management system designed to industry characteristics?
(II) Is the Company committed to improving energy efficiency and to the use of renewable materials with low environmental impact?
(III) Has the Company assessed the	☑		(I) The Company established the "Corporate Environmental Management Procedures" on December 31, 2024, aiming to promote legal compliance, reduce the Company's impact on the environment, foster environmental conservation and sustainability practices, and disclose relevant information to the public. The Procedures also promote management practices and enhance environmental sustainability awareness while maintaining business operations.
(II) The Company purchases Class 1 energy-efficient products for new equipment and office appliances, such as refrigerators and microwave ovens. Employees are also reminded to conserve power and switch off appliances when not in use.
(III) We assess potential climate change risks and opportunities by			No significant differences.
No significant differences.

Promotion Item	State of implementation (Note 1)	Difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
Yes	No	Summary Description
current and future potential risks and opportunities from climate changes and taken contingency measures to address relevant issues?
Type	Dimension	Issues
Transition risk	Policy and regulatory risk	GHG management and carbon fee system response
	Transition risk	Market

State of implementation (Note 1)
Yes	No	Summary Description
				model in response to international carbon tax regulations and the reduction of raw materials due to climate change. Companies are shifting to low-carbon energy and materials to replace existing resources.	prices, resulting in an increase in annual operating costs.	suppliers to adapt to changes. Purchase from multiple brands to disperse risks and enhance the overall supply chain resilience. Increase the ratio of local procurement to reduce transportation emissions and costs.
		Changes in customer behavior	Changes in customer demand and buying behavior have led the Company to delay adjustments to its products and strategies.	The continuous changes in the international situation have caused shifts in customer values and behaviors due to multiple factors. Failure to promptly respond to customer needs or market changes may result in losses and negatively impact the Company's operating costs.	Continue to focus on material issues that are important to stakeholders, improve the quality of communication, and continue to publish sustainability reports. Strengthen the Company's ESG implementation, set related goals, and enhance disclosure quality and performance reporting. Actively seek low-carbon opportunities and continue to improve the Company's sustainable governance performance by continuously developing and distributing new low-carbon products and services.
	Physical risks	Immediate risks	Extreme weather events such as typhoons and floods	Amidst climate change, extreme weather events expose the Company's operational sites to natural disasters, resulting in operational disruptions and repair costs. Under the SSP1-2.6 low-emission scenario: Taiwan's	Due to the increasing frequency of extreme weather events, such as typhoons and heavy rains, large-scale transportation disruptions may occur, thereby affecting supply chain operations and customer rights and interests, and are expected to affect the Company's operating income.	Due to the impact of climate change, the frequency of typhoons, heavy rains, and other extreme weather events has increased, potentially causing large-scale transportation disruptions that affect the supply chain and customer rights, and may result in financial losses following evaluation. The Company has developed a diverse supplier base and established the related emergency response mechanisms to mitigate immediate risks, which is

Promotion Item	State of implementation (Note 1)	Difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
Yes	No	Summary Description

Physical risks	Long-term risk	Average temperature rise

State of implementation (Note 1)
Yes	No	Summary Description
				increase by approximately 6.8 and 6.6 days, respectively. Under the SSP5-8.5 worst-case scenario: The average temperature in the mid- to late-21st century may rise by more than 1.8°C and 3.4°C, while the number of days with high temperatures above 36°C will increase by approximately 8.5 days and 48.1 days, respectively.	increase by 7.8% to 8.4% under the SSP1-2.6 scenario, affecting less than 1% of operating costs. Under the SSP5-8.5 scenario, the electricity bill is expected to increase by 10.8% to 20.4%, also affecting less than 1% of operating costs. Calculation method is for reference Scenario SSP1-2.6: If the temperature rises by 1.3°C, and this results in air-conditioning settings being lowered by 1.3°C, then electricity usage will increase by 1.3 x 6% = 7.8%. Scenario SSP5-8.5: Similarly, if the temperature rises by 1.8°C and the air conditioner setting is lowered by 1.8°C, power consumption will increase by 1.8 x 6% = 10.8%.	replace old, low-efficiency equipment, introduce smart control equipment, and improve energy efficiency.
	Physical risks	Long-term risk	Sea level rise	Rising sea levels will also lead to changes in river basins, which will in turn affect land activities, causing obstructions and property damage.	According to the Shared Socioeconomic Pathway (SSP) of the Intergovernmental Panel on Climate Change (IPCC) Coupled Model Intercomparison Project Phase 6 (CMIP6), under the SSP3-7.0 scenario, it is estimated that sea levels in Taiwan will rise by about 34.5 cm between 2037 and 2056 in a global warming scenario of 2°C.	Assess the necessity and feasibility of adding or relocating warehousing centers. At present, aside from the relatively high risk at the Xizhi Headquarters, rising sea levels are expected to have a limited impact on other operating sites, and flooding is estimated to have a minimal effect on equipment or operations. The Company will regularly monitor relevant risks and formulate business continuity plans and risk response strategies.
	Opportunity	Market	The expansion of the low-carbon semiconductor market drove	Due to global sustainability trends combined with the rapid development	The global market is turning to low-carbon technology in response to GHG reduction initiatives, which in turn increases the demand for and	Actively develop low-carbon product lines with relevant upstream manufacturers to enhance the Company's low-carbon solutions capabilities.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
				sales growth.	and increasing adoption of AI, low-carbon semiconductor solutions have gradually gained attention, and investment and application areas have expanded accordingly.	popularization of low-carbon AI development. This is expected to boost the Company's overall operating revenue.	Integrate the Company's marketing and sales resources to promote low-carbon product lines aligned with sustainability trends and issues, and enhance sustainability competitiveness.
(IV) Has the Company compiled the greenhouse gas emissions, water consumption and total weight of waste of the past two years and established management policies for reduction of greenhouse gas emissions, water consumption and other waste?	✓		(IV)The Company established and implemented the “Energy and Greenhouse Gas Management Procedures” and “Water Resources and Waste Management Procedures” on December 8, 2025, and it is committed to conserving energy, reducing GHG emissions, water consumption, and waste volume during its operations and daily activities. GHG emissions, water consumption, and waste generation in the past two years:					No significant differences.
			Item	2023	2024	2025	Remarks
			Scope 1 and Scope 2 GHG emissions (MtCO2e)	365.8540	368.4926	451.809	ISO 14064-1 was introduced in 2025 to strengthen inventory completeness.
			Scope 3 GHG emissions (MtCO2e) (partial scope)	-	20.1245	128.274	ISO 14064-1 was introduced in 2025, and Scope 3 inventory items were added.
			Water consumption (million liters)	2.1247	2.3495	1.4676

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
			Total waste (metric tons)	54.4810	51.3023	61.2074
IV. Social issues
(I) Has the Company established policies and procedures in compliance with regulations and the International Bill of Human Rights?	☑		(I) The Company identifies with and follows the “UN Global Compact,” “Universal Declaration of Human Rights,” “ILO Declaration on Fundamental Principles and Rights at Work,” and “UN Guiding Principles on Business and Human Rights” to eliminate any infringement on or violation of human rights, and to ensure that internal and external members receive reasonable, equal, and dignified treatment.
Human Rights Policy Content:
• The Company complies with international human rights conventions and has set forth the “Human Rights Policy.” For the policy content, please visit: https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/
• The unit responsible for the Company's human rights policy is the General Administration Department, with the Human Resources Department, Legal Department, and Sustainability Management Department working together to implement the relevant policies.
• The Company has established and implemented workplace diversity and gender equality, and it continues to foster a positive work environment.
• The Company has established the “Sexual Harassment Prevention Measures and Disciplinary Procedures” and the “Whistleblowing System” to eliminate sexual harassment behaviors and					No significant differences.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
			environments, and adopts appropriate preventive, corrective, disciplinary, and handling measures.
• Supplier human rights due diligence: The Company implements sustainability assessments and human rights due diligence for product and service suppliers every year. “Product suppliers” are subject to proactive gathering of public information by dedicated personnel to ensure that operations comply with sustainability and human rights protection. “Service suppliers” with transaction amounts greater than NT$100,000 are subject to sustainability and human rights due diligence every year to ensure compliance. If any noncompliance is found, a deadline for improvement is given. Those who did not improve by the deadline were evaluated for termination of cooperation.
• The Company has a whistleblowing system in place that allows any member, including employees, customers and suppliers, to report illegal, irregular, or harassing conduct.
(II) Has the Company established and implemented reasonable employee welfare measures (including remuneration, vacation and other benefits) and appropriately reflected the business performance or results in the employee remuneration policy?	☑		(II) Employee welfare measures
The Company has set up an Employees Welfare Committee to plan and provide various benefits for colleagues, such as employee health checkups, employee travel, birthday vouchers, marriage allowance, maternity allowance, funeral allowance, afternoon teas, birthday parties, and Christmas parties, as well as other benefits and team-building activities. In addition, the Company provides flexible leave from time to time to promote work-life balance for employees.
The Company has two-day weekends and provides paid time off to employees who have completed a certain period of service, as stipulated by the Labor Standards Act. Employees who have childcare needs, are dealing with a critical illness, have experienced a major life event, or face other special	No significant differences.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
			circumstances may apply for leave without pay as needed to balance work and family responsibilities.
Workplace gender equality
The Company maintains a gender-friendly work environment and career development. In addition to focusing on the gender ratio in management positions, the average gender pay gap for management, and the overall average gender pay gap, the Company also has complete lactation room facilities, parental leave, childcare measures, and other family-friendly measures for pregnancy and childcare.
Operating performance is reflected in employee remuneration
According to Article 23 of the Articles of Incorporation, if the Company has profit in the fiscal year, 7.5% to 11.5% of the profit shall be offered as bonuses for employees. However, if the Company still has accumulated losses, an amount shall be reserved in advance to make up for the losses.
Retirement system
In order to protect employee pension planning, Macnica Anstek has established a retirement plan based on the “Labor Standards Act” and the “Labor Pension Act.” The pension system is divided into a defined benefit plan (old retirement system) and a defined contribution plan (new retirement system), as described below:
• Labor Standards Act (old scheme: a defined benefit plan)
As for the employees, to which the pension scheme under the Labor Standards Act applies, their pensions are calculated based on their length of service and the average salary for the six months prior to the approved retirement date. The Company makes a monthly contribution equal to 2% of the total monthly salaries of employees, to which the pension scheme under the Labor Standards Act applies, to the retirement reserve fund in a special account with

Promotion Item	State of implementation (Note 1)			Difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary Description
			Bank of Taiwan. If the estimated balance of the retirement reserve fund account is insufficient for the payment of pensions to employees who are expected to meet the retirement criteria in the following year, the Company will make a contribution to make up for the difference before the end of March of the following year. The above 2% monthly contribution to the retirement reserve fund is deposited into a special account with Bank of Taiwan in the name of the Supervisory Committee of Labor Retirement Reserve and is managed by the Bureau of Labor Funds, Ministry of Labor. The Company has no right to influence its investment management strategy.

• Labor Pension Act (new scheme: a defined contribution plan)
The Company makes monthly contributions, equal to 6% of the total monthly salaries of employees, to which the pension scheme under the Labor Pension Act, to their pension accounts with the Bureau of Labor Insurance with reference to the Table of Grades of Labor Insurance Salary. | |
| (III) Has the Company provided employees with a safe and healthy work environment and regularly conducted safety and health training?

(IV) Has the Company established an effective career development training program for employees? | ☑ | | (III) The Company values employee safety and health, and it is committed to creating a safe and comfortable work environment. In addition to regularly holding “employee health checkups” to help employees understand their own health status, we also publish “health newsletters” periodically to provide safety and health education for employees. There were no fire incidents and casualties during the year.

(IV) The Company categorizes education and training for new employees, new supervisors, and employees in special professional positions, and it plans different competency courses based on job function to help employees quickly grasp their business scope. After training, the Company collects employee | No significant differences.

No significant differences.

No significant differences. |

Promotion Item	State of implementation (Note 1)			Difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary Description
(V) Has the Company complied with the relevant regulations and international standards and formulated policies for the protection of consumers and clients’ rights and interests and grievance procedures with respect to consumer health and safety, customer privacy, marketing and labeling of products and services?
(VI) Has the Company established supplier management policies which require suppliers to comply with regulations on environmental protection, occupational safety and health or labor rights, and reported the implementation?	☑		feedback and continuously optimizes the education and training content.
(V) We market and label products and services in accordance with relevant laws and regulations and international standards, and have set up grievance filing options in the Stakeholder section of our official website. For details, please visit https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/	No significant differences.
	☑		(VI) The Company follows the Sustainable Procurement Guidelines of its Japanese parent company, MACNICA, to formulate a Supplier Code of Conduct. The Code sets out requirements for legal compliance, respect for human rights, occupational health and safety, environment, ethical management, and avoidance of anti-social forces throughout its operations. Before engaging in transactions with suppliers, their qualifications are assessed in accordance with the Company's internal supplier management mechanism. Contracts signed with major suppliers also include provisions allowing for termination or cancellation at any time if significant impacts on the environment or society occur. Please refer to the following website for relevant guidelines: https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/
V. Has the Company referred to international reporting standards or guidelines in its preparation of sustainability reports and other		☑	From 2024 onward, the Company will issue an annual sustainability report each year based on the United Nations Sustainable Development Goals (SDGs), following the Global Reporting Initiative's GRI Universal Standards and the Task Force on Climate-	No significant differences.

Promotion Item	State of implementation (Note 1)
	Yes	No	Summary Description
reports which disclose the Company's non-financial information? Have the abovementioned reports obtained verification or assurance opinions from third-party certification organizations?			Related Financial Disclosures (TCFD) framework, and will continue to improve the quality of its climate and non-financial information disclosure.
The current report has not yet obtained an assurance or attestation opinion from a third-party assurance provider.
VI. If the Company has established its own sustainability code based on the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy between the policies and their implementation in the Company:
The Company established the Sustainable Development Best Practice Principles in 2016, and it has continuously revised and optimized it in accordance with guidance from the competent authority. In addition to establishing a corporate governance officer and a Sustainability Development Committee, the Company also formed a Sustainability Management Department in 2025, assigning dedicated personnel to follow the principles and incorporate corporate governance, environmental sustainability, and social prosperity-related sustainable development activities into company operations. By doing this, we strengthen the Company’s operational quality and respond to the expectations of stakeholders.
State of implementation:
• Organizational structure: The Company has established a "Sustainable Development Committee" headed by an independent director. The Committee is responsible for the formulation and review of sustainability policies, systems, goals, and programs. There are executive teams under the Committee responsible for leading the E, S, G functional groups in the planning and execution of various projects.
• Practical implementation in 2025: Completed the revision of the "Sustainable Development Practice Principles," established a Sustainability Management Department, responsible for promoting sustainable development initiatives. We also optimized corporate governance evaluation performance, implemented ISO 14064-1 GHG inventory, prepared the 2025 sustainability report, strengthened the TCFD climate-related financial disclosures framework, set environmental sustainability reduction targets and the base year, etc.
• Differences from the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies:” Currently, the Company’s sustainable development principles and their substantive operation have no significant difference from the requirements of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies."
Through the operation of the Sustainable Development Committee, the Company ensures that the implementation of various sustainable development goals and strategies aligns with the spirit of relevant best-practice principles.
VII. Other important information for facilitating the understanding of sustainability and its implementation:
In addition to complying with the Sustainable Development Best Practice Principles, the Company also strives to implement sustainable

Promotion Item	State of implementation (Note 1)			Difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary Description
development in its daily operations: • Specific organization and responsibilities Participation of management: The Company uses the "Board of Directors" as its highest-level guiding body for sustainable development. The "Sustainability Management Department" is responsible for planning, while the General Administration Department coordinates implementation. Reports are submitted regularly to the Board of Directors and the President. In compliance with the requirements of the Japanese parent company: Regularly report on the implementation of risk management, climate adaptation, and supply chain sustainability as required and stipulated by the Japanese parent company. • Sustainability practices specific to the IC distribution industry Supply chain management: Assessment of suppliers' sustainability performance is conducted in a dynamic manner in accordance with the parent company's "Sustainable Procurement Guidelines." We also collaborate with suppliers to implement sustainability goals such as human rights protection, workplace safety, responsible procurement, and the reduction of environmental and social impacts. Customer sustainability information disclosure: Actively follow up on sustainability-related surveys from suppliers and customers, disclose sustainability information related to products and services, and contribute to refining a sustainable supply chain. • Industry-academia collaboration and social welfare Industry-academia collaboration: As a bridge between schools and enterprises, we continue to sponsor college and university laboratories, as well as innovation and technology competitions across schools. We hold practical workshops and provide product and technology resources to enhance academic applications and future talent cultivation. Public welfare: At the end of the year, we partner with public interest associations to organize a winter relief program, collecting materials for those in need. We encourage all employees to participate by purchasing daily necessities to donate to disadvantaged families. • Sustainable Development Best Practice Principles are amended in a dynamic manner The Company's Sustainable Development Best Practice Principles are revised immediately whenever there is a change in the environment. Since the Principles were adopted in 2016, six amendments have been made to date. The latest amendment was made on November 11, 2025.

Note 1: If the "Yes" is checked under the state of implementation, please explain the key policies, strategies, measures and implementations adopted. If "No" is checked, please explain the reasons and relevant policies, strategies and measures to be adopted in the future in the field of "Difference from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons". Regarding promotion items 1 and 2, publicly listed and OTC companies should describe the governance and supervision structure of sustainable development, including but not limited to management guidelines, strategy and goal formulation, review measures, etc. The Company's risk management policies or strategies for environmental, social and corporate governance issues related to operations, and its assessment status should also be described.
Note 2: The materiality principle refers to the environmental, social and corporate governance issues which have a significant influence on the Company's investors and other interested parties.

Climate-related information of publicly listed companies

Implementation of climate-related information

Item	State of implementation
1. Describe the monitoring and governance of climate-related risks and opportunities between the Board and management.	The Company's Board of Directors consists of nine members, including three independent directors, representing 33% of all director seats, and the chairman serves as the chairperson. The Board of Directors is responsible for ultimate oversight of the Company's climate-related risks and opportunities, including assessing the impact of climate change on the Company's business model and ensuring and strengthening the operation and effectiveness of its climate-related risk management mechanisms.
To strengthen the effectiveness of climate governance and sustainability management, the Company's Board of Directors established a "Sustainable Development Committee" chaired by an independent director. The chairperson is responsible for the overall management and promotion of corporate governance, environmental protection, climate change, and labor rights issues. The Committee reports directly to the Board of Directors on climate-related governance plans and implementation results to ensure that company strategies and sustainability goals are consistent.
The Board of Directors and the Sustainable Development Committee hold regular meetings each year to review and report on the ESG performance and climate change-related issues, impact assessments, and progress toward sustainable goals, and continue to refine their approach based on guidance from the Board of Directors. The Board of Directors is responsible for overseeing the overall climate governance structure and strategy. In doing so, we ensure that climate risks and opportunities are incorporated into the Company's decision-making process to enhance corporate resilience and long-term competitiveness.
2. Describe how the identified climate risks and opportunities affect the Company's business operations, strategies, and finances (short-, medium-, and long-term).	Through the Sustainable Development Committee, the Company discussed potential operational transformations, physical risks, and opportunities resulting from climate change factors with various units during TCFD (Task Force on Climate-Related Financial Disclosures) discussions. We have identified potential transformation risks (six items in total) and physical risks (one item in total) and potential opportunities caused by climate change factors.
The Company has fully integrated climate-related risk and opportunity identification and assessment procedures into its existing overall risk management process, and incorporated them alongside other operational risks and opportunities to ensure a consistent and complete management mechanism. The Company uses the "probability of occurrence (Y-axis)" and "degree of operational impact (X-axis)" as core evaluation criteria, quantifying each risk and opportunity with a weight of 1 to 5. Based on these evaluations, the Company ranks risks and opportunities and creates a matrix of key risks and key opportunities to inform management decision-making and strategy implementation.
Under this framework, the Company selects the top two to three short-, medium-, and long-term risk and opportunity issues to be the key climate-related risks and opportunities for this assessment. However, given the high level of international concern regarding climate issues and the potential impact of climate change on long-term business operations and industrial development, the Company also includes some highly relevant issues within the scope of disclosure, including changes in customer behavior, rising average temperatures, and sea level rise.

State of implementation
In addition, given that the Japanese parent company has identified “low-carbon semiconductor market expansion to promote sales growth” as a key climate-related opportunity, and to align with the parent company’s ESG framework and strengthen the overall consistency of the Group’s sustainability management, the Company has also included this issue in its climate-related opportunity disclosures, fully reflecting the potential positive impact of the market’s low-carbon trend on the Company’s business growth.
Type	Dimension	Issues	Risk/opportunity scenarios	Potential financial impact	Response strategy
Transition risk	Policy and regulatory risk	GHG management and carbon fee system response	IEA WEO 2024 NZE 2050 scenario: Aiming to keep global temperature rise below 1.5°C. According to the Climate Change Response Act, starting in 2025, the annual GHG emissions of entities subject to the carbon fee will be factored into the fee calculation. Beginning in 2026, the carbon fee will be implemented in phases based on the level of emissions.	According to the Climate Change Response Act, carbon fee collection has been implemented from 2025 onward, and is expected to affect the Company's operating costs by less than 1%. The increase in the purchase of renewable energy and carbon credits is expected to affect the Company's operating costs by less than 1%. According to the “Regulations Governing the Charge of Carbon Fees” announced by the Ministry of Environment in August 2024, Taiwan began a trial carbon fee system in 2025, initially levied on entities with annual emissions exceeding 25,000 tons, at NT$300 per ton, and reviewed every two years. If the inclusion threshold is lowered to 0 metric tons in 2030 and the fee rate is increased to NT$500 per metric ton, the annual carbon fee expenditure would be approximately NT$226,000 based on the Company's 2025 Scope 1 and Scope 2 emissions of 451.8090 metric tons.	Conduct a GHG inventory to analyze current emissions and set reduction targets. Continue to promote green office practices and energy conservation in the office (such as installing LED energy-saving lamps, turning off lights and electronics when not in use, and switching off lights during lunch breaks). Set a carbon reduction target, using 2026 as the base year, and reduce emissions by 1% annually from 2027 (2027-1%, 2028-2%, 2029-3%, 2030-4%). Assess and introduce renewable energies to lower imported electricity emissions.
Transition risk	Market	Rising energy and raw material costs	Based on the technical requirements estimated in the SSP1-2.6 scenario, the supply chain is transforming to a low-carbon model in response to international carbon tax regulations and the reduction of raw materials due to climate change. Companies are shifting to low-carbon energy and materials to replace existing resources.	Regulations for international carbon fees/taxes are gradually being implemented, which increased the cost of various materials and services, leading to “greenflation.” Related costs are expected to be passed on to product prices, resulting in an increase in annual operating costs.	Continue to observe changes in international and governmental energy policies, and evaluate the feasibility of introducing low-carbon energy. Pay attention to global raw materials and rare earths, and maintain close contact with suppliers to adapt to changes. Purchase from multiple brands to disperse risks and enhance the overall supply chain resilience. Increase the ratio of local procurement to reduce

Item	State of implementation
						transportation emissions and costs.
	Transition risk	Market	Changes in customer behavior	Changes in customer demand and buying behavior have led the Company to delay adjustments to its products and strategies.	The continuous changes in the international situation have caused shifts in customer values and behaviors due to multiple factors. Failure to promptly respond to customer needs or market changes may result in losses and negatively impact the Company's operating costs.	Continue to focus on material issues that are important to stakeholders, improve the quality of communication, and continue to publish sustainability reports. Strengthen the Company's ESG implementation, set related goals, and enhance disclosure quality and performance reporting. Actively seek low-carbon opportunities and continue to improve the Company's sustainable governance performance by continuously developing and distributing new low-carbon products and services.
	Physical risks	Immediate risks	Extreme weather events such as typhoons and floods	Under climate change, extreme weather events cause natural disasters, operational disruptions, and property losses. Under the SSP1-2.6 low-emission scenario: Taiwan's average annual total rainfall increased by approximately 12% and 16% in the medium and long term. The average annual maximum 1-day rainstorm intensity increased by approximately 15.7% and 15.3%. Under the SSP5-8.5 very high emission scenario: Taiwan's average annual total rainfall is projected to increase by approximately 15% and 31% in the medium and long term. The average annual maximum 1-day rainstorm intensity is projected to increase by approximately 20% and 41.3%.	Due to the increasing frequency of extreme weather events, such as typhoons and heavy rains, large-scale transportation disruptions may occur, thereby affecting supply chain operations and customer rights and interests, and are expected to affect the Company's operating income.	Due to the impact of climate change, the frequency of typhoons, heavy rains, and other extreme weather events has increased, potentially causing large-scale transportation disruptions that affect the supply chain and customer rights, and may result in financial losses following evaluation. The Company has developed a diverse supplier base and established the related emergency response mechanisms to mitigate immediate risks, which is expected to lessen the negative impact on overall operations.
Physical risks	Long-term risk	Average temperature rise	Under the SSP1-2.6 ideal mitigation scenario: The average temperature in the	The increase in annual average temperature resulted in a higher utilization rate of energy equipment and	The environmental sustainability team of the Company is responsible for setting energy

State of implementation
			mid- and late-21st century may increase by 1.3°C and 1.4°C, while the number of days with high temperatures above 36°C will increase by approximately 6.8 and 6.6 days, respectively. Under the SSP5-8.5 worst-case scenario: The average temperature in the mid- to late-21st century may rise by more than 1.8°C and 3.4°C, while the number of days with high temperatures above 36°C will increase by approximately 8.5 days and 48.1 days, respectively.	increased energy costs. According to information from the Energy Administration of Taiwan, every 1°C decrease in air-conditioning temperature increases power consumption by 6%. Assuming the electricity bill remains unchanged, the electricity bill is expected to increase by 7.8% to 8.4% under the SSP1-2.6 scenario, affecting less than 1% of operating costs. Under the SSP5-8.5 scenario, the electricity bill is expected to increase by 10.8% to 20.4%, also affecting less than 1% of operating costs. Calculation method is for reference Scenario SSP1-2.6: If the temperature rises by 1.3°C, and this results in air-conditioning settings being lowered by 1.3°C, then electricity usage will increase by 1.3 x 6% = 7.8%. Scenario SSP5-8.5: Similarly, if the temperature rises by 1.8°C and the air conditioner setting is lowered by 1.8°C, power consumption will increase by 1.8 x 6% = 10.8%.	saving and carbon reduction targets and development plans, and coordinating the integration of each department's energy saving and carbon reduction promotion strategies and solutions. Continue to evaluate the energy efficiency of each piece of equipment and energy-saving technology, replace old, low-efficiency equipment, introduce smart control equipment, and improve energy efficiency.
Physical risks	Long-term risk	Sea level rise	Rising sea levels will also lead to changes in river basins, which will in turn affect land activities, causing obstructions and property damage.	According to the Shared Socioeconomic Pathway (SSP) of the Intergovernmental Panel on Climate Change (IPCC) Coupled Model Intercomparison Project Phase 6 (CMIP6), under the SSP3-7.0 scenario, it is estimated that sea levels in Taiwan will rise by about 34.5 cm between 2037 and 2056 in a global warming scenario of 2°C.	Assess the necessity and feasibility of adding or relocating warehousing centers. At present, aside from the relatively high risk at the Xizhi Headquarters, rising sea levels are expected to have a limited impact on other operating sites, and flooding is estimated to have a minimal effect on equipment or operations. The Company will regularly monitor relevant risks and formulate business continuity plans and risk response strategies.
Physical risks	Long-term risk	Sea level rise	Rising sea levels will also lead to changes in river basins, which will in turn affect land activities, causing obstructions and property damage.	According to the Shared Socioeconomic Pathway (SSP) of the Intergovernmental Panel on Climate Change (IPCC) Coupled Model Intercomparison Project Phase 6	Assess the necessity and feasibility of adding or relocating warehousing centers. At present, aside from the relatively high risk at the Xizhi

Item	State of implementation
				damage.	(CMIP6), under the SSP3-7.0 scenario, it is estimated that sea levels in Taiwan will rise by about 34.5 cm between 2037 and 2056 in a global warming scenario of 2°C.	Headquarters, rising sea levels are expected to have a limited impact on other operating sites, and flooding is estimated to have a minimal effect on equipment or operations. The Company will regularly monitor relevant risks and formulate business continuity plans and risk response strategies.
	Opportunity	Market	The expansion of the low-carbon semiconductor market drove sales growth.	Due to global sustainability trends combined with the rapid development and increasing adoption of AI, low-carbon semiconductor solutions have gradually gained attention, and investment and application areas have expanded accordingly.	The global market is turning to low-carbon technology in response to GHG reduction initiatives, which in turn increases the demand for and popularization of low-carbon AI development. This is expected to boost the Company's overall operating revenue.	Actively develop low-carbon product lines with relevant upstream manufacturers to enhance the Company's low-carbon solutions capabilities. Integrate the Company's marketing and sales resources to promote low-carbon product lines aligned with sustainability trends and issues, and enhance sustainability competitiveness.

3. Describe financial impacts of extreme climate events and transition-related actions.	The Company refers to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and discusses and evaluates potential financial impacts related to climate internally through meetings, as detailed in the table above.
4. Describe how climate risk identification, assessment, and management procedures are integrated into the overall risk management system.	Climate-related risks and their potential impacts are diverse, dynamic, and long-term in nature and are subject to high uncertainty, making quantitative assessment challenging. To understand the scale of these risks, the Sustainable Development Committee regularly summarizes Macnica Anstek's climate change risks in meetings and formulates effective management strategies to avoid, mitigate, or transfer them. The Committee regularly reviews and updates the current situation to continuously track strategy effectiveness and goal achievement through rolling management.
5. If scenario analysis is used to assess the resilience to climate change risks, the used scenarios, parameters, assumptions, analysis factors, and main financial impacts shall be described.	The Company uses situational analysis to assess its resilience to climate change risks. The relevant situations, parameters, assumptions, analysis factors, and main financial impacts are described in the table above.

Item	State of implementation
6. If a transformation plan is in place to manage climate-related risks, please describe the plan’s content, as well as the indicators and targets used to identify and manage physical and transition risks.	To respond to climate change and risk management, the Company developed a management plan and implemented the following measures:
■ Established a dedicated sustainability and risk management unit, with personnel responsible for planning and implementing the relevant measures, as well as reporting on the implementation status to the Board of Directors and functional committees on a regular basis.
■ Began a GHG inventory and devised reduction targets for emissions hotspots.
■ Enhanced energy management, raised employee awareness of energy conservation, improved daily habits, and reduced energy consumption.
■ Formulated emergency response plans to enable a quick response in the event of natural disasters such as typhoons, heavy rains, or earthquakes to prevent losses of personnel, property, and operational processes.
7. If using internal carbon pricing as a planning tool, specify the basis for setting the pricing.	The Company's internal carbon pricing system is still under evaluation. We will continue to inventory the organization's GHG emission patterns and collect long-term data to establish a benchmark for the system before developing a plan.
8. If climate-related goals have been set, specify the activities covered, the scope of GHG emissions, the planned schedule, and the progress made in each year. If carbon credits or renewable energy certificates (RECs) are used to achieve the relevant targets, the source and quantity of carbon credits to be offset or the quantity of renewable energy certificates (RECs) shall be specified.	■ The Company's climate-related goals (GHG emissions reduction) and plans are described in the table in Item 2.
■ The Company will evaluate the introduction of renewable energy to reduce imported electricity emissions in the future.
9. GHG inventory and assurance status, along with reduction targets, strategies, and concrete action plans (detailed separately in 1-1	For details on GHG inventory and assurance, reduction targets, strategies, and concrete action plans, please refer to 1-1 and 1-2.

Item	State of implementation
and 1-2).

1-1 GHG inventory and assurance for the most recent two years
1-1-1 GHG inventory information

Describe the GHG emission volume (metric tons CO2e), intensity (MtCO2e/NTD million), and data coverage for the most recent two years.
Item Year	2025			2024
Emissions category	Emissions (MtCO2e)	Annual revenue (NT$1 million)	Density	Emissions (MtCO2e)	Annual revenue (NT$1 million)	Density
Category 1: Direct GHG emissions	298.7946			276.7745
Category 2: Indirect GHG emissions from imported energy	153.0144			91.7181
Category 3: Indirect GHG emissions from transportation	0.1529			-
Category 4: Indirect GHG emissions from products used by the organization	128.1206			-
Total	580.0825	8,959	0.0647	368.4926	5,241	0.0696

Note 1: Direct emissions (Category 1, i.e., direct emissions from sources owned or controlled by the Company), energy indirect emissions (Category 2, i.e., indirect GHG emissions from purchased electricity, heat, or steam), and other indirect emissions (Categories 3 and 4, i.e., emissions generated by the Company's activities that are not energy indirect emissions but come from sources owned or controlled by other companies).
Note 2: GHG inventory standards are based on ISO 14064-1 released by the International Organization for Standardization (ISO).
Note 3: GHG emission intensity is calculated based on revenue of NT$1 million.
Note 4: In 2024, the Company inventoried only direct and indirect GHG emissions from input energy. Other indirect GHG emissions were included in the inventory in 2025.

1-1-2 GHG assurance information

Describe the assurance status for the most recent two years, including the scope of assurance, assurance firm, criteria of assurance, and opinions of assurance.

The Company's paid-in capital was NT$666 million as of the end of 2025. As a listed company with a paid-in capital below NT$5 billion, the Company plans to conduct GHG verification in 2028 according to the FSC’s “Sustainable Development Roadmap for Listed Companies,” GHG verification.

Note 1: This shall be processed according to the schedule stipulated in the order issued pursuant to the schedule specified in Paragraph 2, Article 10 of these Rules. If the Company fails to obtain a complete GHG assurance opinion by the annual report publication date, it shall state, “complete assurance information will be disclosed in the sustainability report.” If the Company does not prepare a sustainability report, it shall state, “complete assurance information will be disclosed on the Market Observation Post System,” and the complete assurance information shall be disclosed in the following year’s annual report.

Note 2: The assurance firm shall comply with the requirements on assurance firms of sustainability reports as established by the Taiwan Stock Exchange and the Taipei Exchange.

Note 3: Please refer to the Best Practice Examples on the website of the Corporate Governance Center of the Taiwan Stock Exchange for disclosure.

1-2 GHG reduction targets, strategies, and concrete action plans

Describe the base year and data for GHG reduction, reduction targets, strategies, and specific action plans, as well as the status of achieving those reduction targets.

The Company will take 2026 as the base year for GHG emission reduction, setting reduction targets of 1% per year starting in 2027 and 4% by 2030.

GHG reduction strategies and concrete action plans:

Reduction of mobile emissions: Company cars are being replaced with hybrid or electric models; employees are advised to use video conferencing instead of business trips; employees are encouraged to carpool or use public transportation.
Strengthen energy management and conservation: Continue promoting turning off lights and appliances when not in use; conduct regular maintenance or replace equipment to maintain operational efficiency; and purchase Class 1 energy-efficient products.
Assess renewable energy use: Assess the future introduction of renewable energy to reduce emissions from imported electricity.

Through the above strategies and continuous improvement of its operating model, the Company aims to achieve net zero by 2050.

Note 1: Conducted according to the schedule stipulated in the order issued pursuant to the schedule specified in Paragraph 2, Article 10 of these Rules.

Note 2: The base year should be the year that the inventory is completed at the boundary of the consolidated financial statements. For example, according to Paragraph 2, Article 10 of these Rules, a company with a capital of more than NT$10 billion should complete the consolidated financial report of 2024 in 2025, so the base year is 2024. If the Company has completed the inventory of the consolidated financial statements ahead of schedule, the earlier base year can be used as the base year, and the data of the base year can be calculated by a single year or the average of several years.

Note 3: Please refer to the Best Practice Examples on the website of the Corporate Governance Center of the Taiwan Stock Exchange for disclosure.

(VI) The state of the Company's performance in the area of ethical corporate management, any differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and the reasons for any such differences

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
I. Establish corporate conduct and ethics policy and implementation measures
(I) Has the Company established ethical management policies approved by the board and do regulations and publicly available documents clearly state corporate conduct and ethics policies and measures and the commitment of the board and the executive management team to implement of such policies?
(II) Has the Company established a risk assessment mechanism against unethical conduct, analyzed and assessed on a regular basis business activities within its business scope which are at a higher risk of involving unethical conduct, and established prevention programs accordingly	✓		(I) The Company has established the “Ethical Corporate Management Best Practice Principles” and the “Procedures for Ethical Management and Guidelines for Conduct,” and “Code of Ethics and Conducts,” which were approved by the Board of Directors. All members of the Board of Directors signed the "Statement of Compliance with Ethical Management Policy" on May 28, 2025—the day they took office—to fulfill the commitment to ethical management.
Please refer to the Investor Relations section of the Company's website for the “Ethical Corporate Management Best Practice Principles” and the “Procedures for Ethical Management and Guidelines for Conduct,” and “Code of Ethics and Conducts.” https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/
(II) To ensure the implementation of ethical management policies, the Company's “Procedures for Ethical Management and Guidelines for Conduct” expressly prohibit any person from directly or indirectly providing, receiving, promising, or requesting money, gifts, commissions, positions, services, favors, rebates, facilitation payments, entertainment, or other valuables in any form. In addition, the Company conducts annual training and outreach on ethical management to strengthen its implementation.	No difference

Issues to be assessed	State of implementation (Note)			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary Description
which at least cover the prevention measures against the conducts listed in Article 7, Paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies?
(III) Has the Company defined operating procedures, conduct guidelines, disciplinary penalties and grievance process in the program preventing unethical conduct and put them in practice, and regularly reviewed and amended the program?	☑		(III) The Company strictly follows the “Code of Ethics and Conducts,” “Procedures for Ethical Management and Guidelines for Conduct,” and the “Reporting System.” The Company also provides a 24-hour group whistleblowing hotline in sync with the Japanese parent company to collect and handle reports of impropriety, harassment, and violations of group rules. The relevant standards and guidelines are reviewed annually and revised as needed.	No difference
II. Practice ethical operations
(I) Does the Company assess the ethics records of the parties it has business relationships with and include business conduct and ethics related clauses in the business contracts?
(II) Has the Company established a specialized unit under the board responsible for the promotion of corporate ethics management,	☑		(I) The Company follows the "Sustainable Procurement Guidelines" of its parent company and announces these guidelines to suppliers, requiring compliance with the relevant ethical corporate management standards. When the Company enters into contracts with suppliers or other partners, the contracts include terms requiring compliance with the ethical corporate management policy. These terms stipulate that in the event the trading counterparties are involved in unethical conduct, the Company may at any time terminate or rescind the contracts. The Company strictly implements a high-standard anti-corruption policy as a prerequisite for selecting suppliers or other partners.
(II) The Remuneration Committee, Audit Committee, and Audit Office have been established under the Company’s Board of Directors to supervise and audit compliance with ethical management practices according to their respective	No difference
No difference

Issues to be assessed	State of implementation (Note)			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary Description
which regularly (at least once a year) reports policies on ethical operations, programs on prevention of unethical conduct and the status of supervision to the board?

(III) Has the Company established policies to prevent conflicts of interest, provide appropriate communication and complaint channels and implement such policies properly? | ☑ | | responsibilities. The “General Administration Department” serves as the dedicated unit for promoting ethical corporate management, responsible for formulating and overseeing the implementation of ethical management policies and preventing unethical conduct, and it reports to the Board of Directors annually on the results of the previous year.

(III) Through documents such as the “Rules of Procedure for Board of Directors' Meetings,” the “Code of Ethics and Conducts,” and the “Ethical Corporate Management Best Practice Principles,” the Company clearly formulates and faithfully enforces policies and regulations for the prevention of conflict of interest.

Conflict of interest:
• For directors (pursuant to Article 15 of the Rules of Procedure for Board of Directors' Meetings):

A director with a material interest in any matter to be discussed at a board meeting must proactively disclose the nature of that interest during the meeting.
If such an interest could harm the Company's interests, the director must not participate in the discussion or voting and shall recuse themselves.
In addition, the director may not exercise voting rights on behalf of other directors.
• For directors, supervisors, and managers (as stipulated in Article 3 of the Code of Ethics and Conducts):
Business should be conducted objectively and efficiently, and official positions should not be used to obtain improper benefits for relevant stakeholders or enterprises.
When the way business is handled cannot maintain objectivity or efficiency, or when individuals become aware of potential conflicts of interest (such as those involving | No difference |

Issues to be assessed	State of implementation (Note)			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary Description
(IV) Has the Company established an effective accounting and internal control system to put ethical operations management into practice and arranged for the internal audit unit to formulate audit plans based on the risk assessment of unethical conduct and audit the compliance to prevent unethical conduct, or commissioned independent auditors to conduct the audit?

(V) Does the Company provide internal and external ethical conduct training programs on a regular basis? | ✓ | | significant transactions and relationships), they should proactively disclose them at supervisor meetings or to board meetings.

➤ Such explanatory statements need to be documented and directly reviewed by the Board of Directors or functional committees.

➤ After review, if it is determined that the relevant conduct does not cause damage to the Company or the interests of all shareholders, it may be permitted.

The Code of Ethics and Conducts has been disclosed in the Investor section of the Company's website. For details, please visit https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/

(IV) The Company’s accounting system is formulated in accordance with the relevant laws and regulations and actual business practices, and is implemented in daily operations. Annual financial statements are audited by CPAs to ensure their fairness. Each unit of the Company shall perform a self-assessment of the internal control system at least once a year to review control processes and methods and ensure that the system and its operation were effective. The audit unit is responsible for coordinating the compilation of the Company's internal control system evaluation and reporting any deficiencies, abnormalities, and areas for improvement to the Board of Directors to maintain the normal functioning of the Company’s internal control system.

(V) The Company regularly organizes integrity management training at the end of each year to promote the Ethical Corporate Management Best Practice Principles, operating procedures, and Code of Ethics and Conducts, provide examples of dishonesty, | No difference |
| | ✓ | | No difference | |

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
			and conduct post-course tests to enhance employee awareness.
III. Operation of the Company's grievance reporting system
(I) Has the Company established specific whistleblowing and reward procedures, set up conveniently accessible whistleblowing channels and designated responsible individuals to handle the complaints received?
(II) Has the Company established standard operating procedures for investigating the complaints received, follow-up measures to be adopted and the related confidentiality measures after investigation?
(III) Does the Company adopt proper measures to shield whistleblowers from retaliation for filing grievances?	☑		(I) We have a grievance filing system, and have set up a comment box and assigned dedicated personnel to handle the complaints. Please refer to the Stakeholder section on our website.
https://www.macnica.com/apac/anstek/zh_tw/investors/stake-holders/investor-relations/

(II) We have formulated standard operating procedures in our "Ethical Corporate Management Best Practice Principles", "Procedures for Ethical Management and Guidelines for Conduct" and "Code of Ethics and Conducts" to handle unethical behavior involving our personnel. For reported matters, the Company assigns dedicated personnel to conduct an investigation under the direction of the President and submit an investigation report upon completion of the investigation. Violations of ethical conduct that are verified as true will be disciplined according to the personnel regulations, and the identity of the whistleblower will be protected.
(III) We have whistleblowing and grievance filing channels, and provide protection measures against retaliation for whistleblowers. For details, please refer to the Stakeholder section of our website. | No difference

No difference

No difference |

Issues to be assessed	State of implementation (Note)
	Yes	No	Summary Description
			https://www.macnica.com/apac/anstek/zh_tw/investors/stake-holders/investor-relations/
IV. Enhance information disclosure
Does the Company disclose its Ethical Corporate Management Best Practice Principles as well as information about implementation of such guidelines on its website and the Market Observation Post System?	☑		1. We have disclosed the “Ethical Corporate Management Best Practice Principles” and the “Procedures for Ethical Management and Guidelines for Conduct” in the Stakeholder section on our website. For details, please visit https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/important-regulations/
2. For details on the implementation status of ethical management for the current year, please refer to: https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/governance-implementation/.	No difference
V. If the Company has established corporate governance policies based on the Ethical Corporate Management Best Practice Principles for the Listed Companies, please describe any discrepancy between the policies and their implementation in the Company:
We have formulated the Ethical Corporate Management Best Practice Principles, and our operation and supervision are in accordance with the regulations. The implementation is not significantly different from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies.
VI. Other important information for facilitating the understanding of ethical management and its implementation:
We pay attention to the development of regulations for corporate conduct and ethics both at home and abroad at all times and encourage the directors, executives and employees to offer their recommendations and discuss improvements to the Company's Ethical Corporate Management Best Practice Principles, further enhancing the Company's performance in such area.

Note: Regardless of whether the “Yes” or “No” box is checked, the state of implementation be stated in the summary description field.

(VII) Other material information that can provide a better understanding of the state of the Company's implementation of corporate governance may also be disclosed:

For details, please visit https://www.macnica.com/apac/anstek/zh_tw/investors/corporate-governance/board-of-directors/

(VIII) Status of implementation of the Company's internal control protocols

Statement on Internal Control
Accounts commissioned to review the internal control protocols: None.

Macnica Anstek Inc.
Statement on Internal Control System
Date: March 10, 2026

The Company’s 2025 Internal Control System Declaration is declared as follows in accordance with the self-assessment results:

I. The Company is aware that the establishment, execution, and maintenance of its internal control policies are the responsibilities The Company’s board of directors and managers. These policies were implemented throughout The Company. The purpose is to provide reasonable assurance on the achievement of operating effectiveness and efficiency (including profits, performance and assets safeguarding) and on the reporting of matters with reliability, timeliness, and transparency and compliance with the relevant law and regulations.

II. Internal control policies are prone to limitations. No matter how robustly designed, effective internal control policies merely provide reasonable assurance to the achievements of the three goals above. Furthermore, environmental and situational changes may affect the effectiveness of internal control policies. However, self-supervision measures were implemented within The Company’s internal control policies to facilitate immediate rectification once procedural flaws have been identified.

III. Based on the criteria of the internal control system effectiveness in the “Regulations Governing the Establishment of Internal Control System by Public Companies” (hereinafter referred to as the “Regulations”), the Company has determined the effectiveness of the internal control system design and implementation. The criteria introduced by “The Governing Principles” consisted of five major elements, each representing a different stage of internal control: 1. Control environment, 2. Risk evaluation and response, 3. Procedural control, 4. Information and communication, 5. Supervision. Each element further contains several items. Please refer to “The Governing Principles” for details.

IV. The Company has adopted the aforementioned judgment items for the internal control system to evaluate the effectiveness of the Company's internal control system in both design and implementation.

V. The Company, according to the aforementioned evaluation results, thinks the Company’s internal control system (including the supervision and management over the subsidiaries) on December 31, 2025, including understanding the effectiveness and efficiency of operations, reporting the internal control design and implementation with effectiveness, timeliness, transparency, and compliance with the relevant requirements and regulations and laws; therefore, a reasonable assurance on the achievement of the aforementioned goals is provided.

VI. This declaration forms part of the main contents of the company’s annual report and prospectus, and shall be disclosed to the public. Any illegal misrepresentation or non-disclosure relating to the public statement above are subject to the legal consequences under Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

VII. This statement of declaration has been unanimously approved by all nine attending board members at the board meeting on March 10, 2026.

Macnica Anstek Inc.
Chairman: Wu, Wei-Kuo
Signature

President: Chen, Fa-Yung
Signature

(IX) Material resolutions of shareholder meetings or board of directors meetings during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report

Key resolutions from the annual general meeting

We held the 2025 annual general meeting of shareholders in Xizhi District, New Taipei City, on May 28, 2025. The resolutions passed and the implementation of resolutions of shareholders attending the meeting are as follows:

(1) Ratification of the 2024 financial statements and business report.

Implementation: Ratification of the 2024 financial statements and business report, of which the annual revenue was NT$5,291,435 thousand, the net income after tax NT$277,449 thousand, and the earnings per share NT$4.16.

(2) Ratification of the 2024 annual profit allocation.

Implementation status: Approved the distribution of cash dividends at NT$3 per common share, and set September 7, 2025, as the book closure date and September 22, 2025, as the payment date.

Key resolutions from board meetings

Session	Date	Type of meeting	Key resolutions
8th session	2025.01.14	Board of directors	1. Review on the proposal for the amount of managerial officer’s year-end bonus for 2024.
2. Review on the 2025 annual budget plan.
3. Review of the motion for the Company's “Sustainability Information Management Procedures” and amendment to the “Delegation of Authority Table.”
4. Review of the motion for establishment of the Company's “Procedures for the Preparation and Assurance of the Sustainability Report.”
8th session	2025.03.11	Board of directors	1. Review on the 2024 performance appraisal of the board and audit personnel.
2. Review on the allocation of 2024 remuneration to employees and directors.
3. Review on the 2024 financial statements and business report.
4. Review on the 2024 earnings distribution in cash dividends.
5. Review on the 2024 annual profit distribution.
6. Deliberation on the Company’s capital increase affairs by employee stock options in Q4, 2024.
7. Deliberation on the 2024 Statement on Internal Control.
8. Deliberation on amendment to the “Corporate Governance Best Practice Principles”.
9. Deliberation on amendment to the “Articles of Incorporation”.
10. Deliberation on amendment to the “Rules of Procedures for Shareholders Meetings”.

Session	Date	Type of meeting	Key resolutions
			11. Deliberation on the financing amount for 2025. 12. Review on the regular assessment of the independence and suitability of CPAs, and public expense for 2025. 13. Deliberation on the re-election of directors. 14. Deliberation on the acceptance of the list of directors nominated by the board. 15. Deliberation on the review of qualifications of the independent directors nominated by the board. 16. Deliberation on lifting the restrictions on the non-compete clause of newly elected directors and their legal representatives. 17. Deliberation on the date, location and matters to be discussed of the 2025 annual general meeting.
8th session	2025.05.06	Board of directors	1. Review on the Company's Q1 2025 financial statements. 2. Review on the 2024 Sustainability Report.
9th session	2025.05.28	Board of directors	1. Review of the motion for election of the Chairman and Vice Chairman. 2. Review of the motion for appointment of Remuneration Committee members for the 6th term. 3. Review of the motion for appointment of Remuneration Committee members for the 2nd term. 4. Review of the motion for appointment of the Company's managers.
9th session	2025.08.12	Board of directors	1. Review on the Company's Q2 2025 financial statements. 2. Review of the motion for remuneration of the Company's newly appointed managers. 3. Review of the motion for salary adjustment of the Company's managers for 2025. 4. Review of the amount of employee remuneration for managers in 2024. 5. Deliberation on amendment of the Management Measures for Performance Appraisal and Remuneration. 6. Review of the motion for pre-approved non-assurance services for 2025.
9th session	2025.11.11	Board of directors	1. Motion for review of the establishment of the "Risk Management Committee," the formulation of the "Risk Management Committee Charter," "Risk Management Policies and Procedures," and the appointment of Risk Management Committee members for the 1st term. 2. Review on the Company's Q3 2025

Session	Date	Type of meeting	Key resolutions
			financial statements.
3. Review on the change of the chief internal auditor.
4. Review of the motion for amendment to the Company's “Sustainable Development Best Practice Principles.”
5. Review on the 2026 annual budget plan.
6. Review of the motion for application to increase the total credit limit.
7. Review of the 2026 audit plan.
8. Review of the motion for amendment to the Company's “Payroll Cycle Internal Control Operations” and the corresponding “Internal Audit Implementation Rules.”
9. Review of the motion for amendment to the Company's “Payroll Cycle Internal Control Operations” and the corresponding “Internal Audit Implementation Rules.”
10. Review of the motion for amendment to the Company's “Management Procedures for Delegation of Authority” and the “Delegation of Authority Table.”
11. Review of the motion for amendment to the Company's “Rules Governing Financial and Business Matters Between Affiliated Enterprises.”
12. Review of the motion for formulation of the Company's “Customer Rights Policy.”
13. Deliberation on the establishment of the Company’s “Personal Information Protection Management Regulations.”
9th session	2026.03.10	Board of directors	1. Review of the motion for the business report and financial statements for 2025.
2. Review on the allocation of 2025 remuneration to directors and employees.
3. Review of the motion for distribution of remuneration to rank-and-file employees for 2025.
4. Review on the 2025 earnings distribution in cash dividends.
5. Review on the 2025 annual profit distribution.
6. Deliberation on the 2025 Statement on Internal Control.
7. Deliberation on amendment to the “Corporate Governance Best Practice Principles”.
8. Review of the motion for performance evaluation of the Board of Directors, functional committees, and auditors for 2025.

Session	Date	Type of meeting	Key resolutions
			9. Review on the regular assessment of the independence and suitability of CPAs, and public expense for 2026.
10. Review of the motion for amendment to the Company's “Accountant Performance Evaluation Guidelines.”
11. Review of the motion for application to increase the total credit limit.
12. Deliberation on the date, location and matters to be discussed of the 2026 annual general meeting.

(X) 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 key resolution passed by the board, and the dissenting opinion has been recorded or prepared as a written declaration: None.

IV. Information on CPA's audit fees

(I) CPA's audit fees

Unit: Thousands of NTD

Accountant Name of accounting firm	Name of CPA	Audit period	Audit Service	Non-Audit Service	Total
Ernst & Young Global Limited	Chang, Zheng-Dao	2025.01.01~2025.12.31	2,170	400	2,570
	Yang, Hung-Bin
Deloitte & Touche	Chen, Chien-Hung	2025.01.01~2025.12.31	-	220	220

Note 1: Non-audit fees are fees for tax certification, provisional tax payments and transfer pricing, and the public expense for business registration.

(II) If the accounting firm is replaced and the audit fees paid during the year in which the replacement occurs are less than those paid in the prior year, the amount of the decrease in the audit fees and the reason thereof shall be disclosed: None.

(III) When the audit fees paid for the current year are lower than those paid for the prior year by 10% or more, the amount and percentage of the decrease and thereof shall be disclosed: None.

V. Replacement of CPAs:

(I) Former CPAs: N/A.

(II) Successors: N/A.

(III) Reply from the former CPAs to the matters under Article 10, subparagraph 6, items 1 and 2-3 of the Regulations Governing Information to be Published in Annual Reports of Public Companies: None.

VI. Where the Chairman, President, Chief Financial Officer, or Chief Accounting Officer, who has been employed by the CPA firm or its affiliates in the most recent year, the name, title, and period of employment at the firm or any affiliate thereof shall be disclosed: None.

VII. Changes in the transfer or pledge of shares by directors, supervisors, officers, and shareholders holding over $10\%$ of the outstanding shares in the previous year and by the date of report publication

(I) Changes in shareholding of directors, supervisors, officers and principal shareholders

Unit: Share

Job title (Note 1)	Name	2025		2026 and as of March 29
		Increase (decrease) in the number of shares held	Increase (decrease) in the number of pledged shares	Increase (decrease) in the number of shares held	Increase (decrease) in the number of pledged shares
Director (Principal shareholder)	Macnica Chungju Co., Ltd.	0	0	0	0
Representative of corporate shareholder	Wu, Wei-Kuo	0	0	0	0
Director	Lee, Jui-Si	0	0	0	0
Director	Chen, Fa-Yung	(18,000)	0	0	0
Director	Chou, Chu-Ting	(56,340)	0	5,000	0
Director	Cheng, Han	0	0	0	0
Director	Yang, Su-Fang	0	0	0	0
Independent director	Sun, Te-Chih	0	0	0	0
Independent director	Tan, Gin-Hwee	0	0	0	0
Independent director	Wang, Tzu-Jou	0	0	0	0
Vice President	Lee, Jui-Fang	(103,000)	0	0	0
Assistant Vice President	Huang, Chun-Hao	(4,000)	0	3,000	0
Assistant Vice President	Tan, Min-Li	(29,000)	0	0	0
Assistant Vice President	Wu, Hsun-Chien	(8,000)	0	0	0
Assistant Vice President	Chang, Kuei-Chen	(12,000)	0	0	0
Assistant Vice President	Pan, Chun-Ming	(53,000)	0	65,000	0
Assistant Vice President	Wu, Chun-Hsien	(5,000)	0	0	0
Assistant Vice President	Lin, Chih-Feng	0	0	0	0
Senior Manager	Lin, Shu-Hsien	(9,000)	0	9,000	0
Senior Manager	Cheng, Lien-Hung	0	0	0	0
Senior Manager	Huang, Hsi-Yu	(9,000)	0	0	0
Senior Manager	Kuo, Yi-Fei	(4,147)	0	0	0
Senior Manager	Wu, Wen-Chung	(19,000)	0	0	0
Manager	Li, Ching-Yi	(6,000)	0	0	0
Manager	Wang, Yu-Ying	0	0	0	0

Note 1: Shareholders with more than $10\%$ of the Company's shares should be indicated as the principal shareholders and listed separately.
Note 2: If the counterparty of the stock trade or pledge is a related party, please also fill out the following table.

(II) Stock trade or pledge is a related party: None.

VIII. Information on top ten shareholders and their mutual relationship as spouse or blood relative within the second degree

Unit: Share, %
Record date: March 29, 2026

| Name
(Note 1) | Shareholding | | Shareholding of spouse or minor children | | Shares Held in the Name of Others | | Title, name and relationship of the top ten shareholders who have mutual relationship as spouse or blood relative within the second degree
(Note 3) | | Remarks |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Number of shares | Shareholding (%) | Number of shares | Shareholding (%) | Number of shares | Shareholding (%) | Title (or name) | Relationship | |
| Macnica Chungju Co., Ltd. | 33,954,608 | 50.95 | 0 | 0 | 0 | 0 | None | None | |
| Lee, Jui-Si | 3,631,384 | 5.45 | 1,086,256 | 1.63 | 0 | 0 | Tu, Ssu-Chia | Spouse | |
| | | | | | | | Lee, Jui-Fang | First- and second-degree relatives | |
| | | | | | | | Li, Chen-Hua | First- and second-degree relatives | |
| Lee, Jui-Fang | 2,375,591 | 3.56 | 0 | 0 | 428,904 | 0.64 | Li, Chen-Hua | Spouse | |
| | | | | | | | Lee, Jui-Si | First- and second-degree relatives | |
| | | | | | | | Tu, Ssu-Chia | First- and second-degree relatives | |
| Tu, Ssu-Chia | 1,086,256 | 1.63 | 3,631,384 | 5.45 | 0 | 0 | Lee, Jui-Si | Spouse | |
| | | | | | | | Lee, Jui-Fang | First- and second-degree relatives | |
| | | | | | | | Li, Chen-Hua | First- and second-degree relatives | |
| Ke Rui Brothers Co., Ltd.
Representative: Li, Chen-Hua | 801,250 | 1.20 | 0 | 0 | 0 | 0 | Note 4 | Note 4 | |
| | 428,904 | 0.64 | 2,375,591 | 3.56 | 0 | 0 | | | |
| Kai Rui Investment Co., Ltd. | 734,378 | 1.10 | 0 | 0 | 0 | 0 | None | None | |
| Cheng, Hui-Fang | 417,285 | 0.63 | 0 | 0 | 0 | 0 | None | None | |
| Pan, Yung-Sheng | 315,855 | 0.47 | 0 | 0 | 0 | 0 | None | None | |
| Hsiao, Li-Chun | 302,401 | 0.45 | 0 | 0 | 0 | 0 | None | None | |
| Citibank Custody Berkeley Capital SBL/PB Investment Account | 289,000 | 0.43 | 0 | 0 | 0 | 0 | None | None | |

Note 1: All the top ten shareholders shall be listed, with the legal person shareholders listing the name of the legal person and the representative separately.
Note 2: The calculation of shareholding percentage refers to the shares owned under one's name, the spouse or minor children or held in the name of others.
Note 3: The shareholders listed in the previous disclosure, including the legal persons and natural persons, shall disclose their mutual relationship in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers".
Note 4: Lee, Jui-Fang and Li, Chen-Hua are spouses, and serve as the vice president and responsible person of Macnica Anstek and Ke Rui Brothers, respectively.

IX. 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: None.

Three. Financing Activities

I. Matters to be recorded regarding the capital and shares

(I) Source of capital

History of capital formation

Unit: Share, NT$ thousand

Month/Year (Note 1)	Issue price	Authorized Share Capital		Paid-in capital		Remark (Note 2)
		Number of shares	Amount	Number of shares	Amount	Source of capital	Offset by any property other than cash	Others
2025/04	10	80,000,000	800,000,000	66,639,216	666,392,160	Capital increased by NT$132,500 through issuance of common shares upon employees’ exercise of stock options	-	2025/4/17 Letter Jin-Shou- Shang-Zi No. 11430046520

Note 1: The information should be filled in as of the annual report's publication date.
Note 2: The capital increase should be annotated with the effective (approval) date and letter number.

Unit: NT$ thousand; shares

Source of capital	Amount	Number of shares	%
Capital at establishment	1,000	100,000	0.15
Cash capital increase	364,825	36,482,475	54.75
Capitalization of profit	242,616	24,261,604	36.41
Additional paid-in capital	16,883	1,688,362	2.53
Capitalization of employee bonus	11,133	1,113,275	1.67
Capitalization of employee stock options	29,935	2,993,500	4.49
Total	666,392	66,639,216	100.00

Type of shares already issued

Unit: Share

Type of Shares	Authorized Share Capital			Remarks
	Shares outstanding (Note)	Un-issued Shares	Total
Ordinary shares	66,639,216	13,360,784	80,000,000	Shares of listed company

Note: These are shares of a public company, and the common shares include 2,993,500 stock options granted to employees.

Information on the shelf registration: Not applicable.

(II) List of major shareholders

If there are fewer than 10 shareholders, each with a shareholding of at least 5%, the names as well as the number and percentage of shares held by the top 10 shareholders with the highest shareholdings shall be disclosed

Unit: Share; %
Record date: March 29, 2026

| Shares
Name of major shareholder | Number of shares held | Shareholding |
| --- | --- | --- |
| Macnica Chungju Co., Ltd. | 33,954,608 | 50.95% |
| Lee, Jui-Si | 3,631,384 | 5.45% |
| Lee, Jui-Fang | 2,375,591 | 3.56% |
| Tu, Ssu-Chia | 1,086,256 | 1.63% |
| Ke Rui Brothers Co., Ltd. | 801,250 | 1.20% |
| Kai Rui Investment Co., Ltd. | 734,378 | 1.10% |
| Cheng, Hui-Fang | 417,285 | 0.63% |
| Pan, Yung-Sheng | 315,855 | 0.47% |
| Hsiao, Li-Chun | 302,401 | 0.45% |
| Citibank Custody Berkeley Capital
SBL/PB Investment Account | 289,000 | 0.43% |

(III) The Company's dividend policy and implementation

Dividend policy

As per the earnings distribution policy under the Company's Articles of Incorporation, where the Company makes a profit for a fiscal year, the profit shall be first used for paying taxes, offsetting a cumulative deficit, providing 10% of the remaining profit as a legal reserve unless it has reached the total amount of the Company's paid-in capital, providing an amount for or reversing a special reserve in accordance with laws and regulations, and then any remaining profit, together with any undistributed retained earnings, shall be adopted by the Company's Board of Directors as the basis for making a distribution proposal (not lower than 10% of the year's cumulative distributable earnings), which shall then be submitted to the shareholders' meeting for a resolution before the distribution of the shareholder dividends.

When the Company provides a special reserve as per law, regarding the shortfall of the "net increase in the fair value of investment property accumulated in the prior period" and the "net deduction of other equity interests accumulated in the prior period," the same amounts of special reserves shall be provided from the undistributed earnings of the prior period. If there is still a shortfall, a special reserve shall be provided from the amount of the current period's after-tax net income, plus the amounts other than the current period's after-tax net income, added to the current undistributed earnings.

Where the dividends or dividends from the legal reserves and the capital surplus referred to in the first paragraph are paid out in cash, the Board of Directors may be delegated to carry it out, with a resolution adopted by more than half of the directors present at a board meeting attended by more than two-thirds of all directors and report to the shareholders' meeting.

Furthermore, as per the Articles of Incorporation, as the business environment where the Company is located is stable and growing, based on the future business expansion and investment plans, we may pay out dividends in two ways: capitalization of earnings and cash dividends. Cash dividends to be paid out shall not be lower than 20% of the total dividends to be paid out. However, if the cash dividend per share is NT$0.2 or lower, it may not be paid out, and the payout may be carried out with stock dividends instead. It shall be then submitted to the shareholders' meeting for resolution.

This year's dividend distribution approved by the resolution of the Board of Directors
Unit: NT$

Item	Amount
	Sub-total	Total
Unappropriated earnings at the beginning of the period		401,148,759
Add: Net profit after tax for the period	152,972,619
Add: Defined benefit plan remeasurement recognized in retained earnings	216,356
Net profit after tax for the period plus the amount of items other than net profit after tax for the period included in unappropriated earnings for the year		153,188,975
Less: Provision for legal reserve (10%)		15,318,898
Available-for-distribution earnings		539,018,836
Distribution items:
Shareholders' bonuses - cash (NT$1.38 per share)		91,962,118
Unappropriated earnings at the end of the period		447,056,718

Expected significant changes in the dividend policy: None.

(IV) The influence of the stock dividend proposed at the shareholders' meeting on the Company's operating performance and earnings per share: N/A.

(V) Employee remuneration and directors' remuneration

The percentage of the profit for or scope of employee remuneration and directors' remuneration as stated in the Company's Articles of Incorporation:

Where the Company makes a profit for a fiscal year, it shall provide 7.5% to 11.5% of the balance for employee remuneration, and the Board of Directors shall resolve a decision to pay it out in stock or cash; not higher than 2.5% of the balance shall be provided for directors' remuneration. The employee remuneration and directors' remuneration distribution proposal shall be reported to the shareholders' meeting.

Of the employee compensation amount in the preceding paragraph, no less than five percent shall be distributed to basic-level employees.

However, if the Company still has a cumulative deficit, it shall reserve an amount for offsetting the deficit in advance and then provide employee remuneration and directors' remuneration at the percentages in the preceding two paragraphs. Please refer to the "Market Observation Post System" of the Taiwan Stock Exchange for information on employee compensation and remuneration to directors resolved by the board of directors.

The Company's employee treasury shares, employee stock options, new shares subscribed for by employees, restricted stock awards, and employee remuneration, may apply to employees at the controlling company or subsidiaries who meet certain criteria.

The basis for the estimation of employee remuneration and directors' remuneration in this period, basis for the calculation of the number of shares for stock dividends to employees, and accounting treatment if the amount paid out is different from the estimated amount.

(1) The 2025 remuneration to employees and directors approved by the board on March 10, 2026 was estimated at a certain percentage based on the status of the current year's profit.

(2) If there is any discrepancy between the estimated amount and the actual distributed amount in the current period, it is treated as the change in accounting estimates and recorded in the next year.

Distribution of remuneration as approved by the board

(1) Amount of remuneration for employees and directors payable in cash or stocks: If the amount recognized in the fiscal year is different from the estimate, please disclose the difference, reasons and treatment

Unit: Thousands of NTD

Status of distribution	2026 resolution to distribute 2025 remuneration to employees and directors
	Actual amount to be distributed as per the board resolution	Amounts recognized in the annual financial report	Difference	Reason for different and the treatment
(1) Employee remuneration				No difference between the resolved distribution amount and the estimated amount of remuneration of employees and directors for 2025.
- Remuneration in cash	25,114	25,114	—
- Remuneration in stocks	—	—	—
(2) Remuneration for directors	4,367	4,367	—

(2) The amount of any employee remuneration distributed in stocks, and the size of that amount as a percentage of the sum of the after-tax net income stated in the parent-only financial reports or individual financial reports for the current period and total employee remuneration: Not applicable, as the Company does not distribute employee remuneration in stocks.

The actual distribution of employee and director remuneration 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 and director remuneration, additionally the discrepancy, cause, and how it is treated

Unit: Thousands of NTD

Status of distribution	2025 resolution to distribute 2024 remuneration to employees and directors
	Actual amount to be distributed as per the board resolution	Amounts recognized in the annual financial report	Difference	Reason for different and the treatment
(1) Employee remuneration				No difference between the resolved distribution amount and the estimated amount of remuneration of employees and directors for 2024.
- Remuneration in cash	38,874	38,874	—
- Remuneration in stocks	—	—	—
(2) Remuneration for directors	7,774	7,774	—

(VI) The repurchase of the Company's shares: None.

II. Issuance of corporate bonds: None.
III. Issuance of preference shares: None.
IV. Issuance of depository receipts: None.

V. Issuance of employee stock options

(I) The status of outstanding employee stock options and their impact on shareholders' equity.

Record date: March 29, 2026

Types of employee stock options (Note 2)	Term January 2018 (Note 5)
Effective date
Number of units issued	1,200 units on 2018.07.25
Date of issuance (processing) (Note 4)	2019.05.02
Number of units already issued	1,023.25 units; each unit may subscribe for 1,000 ordinary shares of the Company
Number of units still available	0 units
Number of shares to be subscribed for as a % of the total number of issued shares	1.82935%
Duration	2019.05.02 ~ 2025.05.01
Performance method (Note 3)	Issuance of new shares
Restricted subscription period and %	50% can be exercised after the end of two years
75% can be exercised after the end of three years
100% can be exercised after the end of four years
Number of shares exercised and acquired	1,023,250 shares
Amount of shares exercised for subscription of shares	NT$ 27,752,350
Number of units not yet exercised for subscription of shares	176.75 units
Subscription price per share for those not yet exercised for subscription of shares	NT$24
Number of those not yet exercised for subscription of shares as a % of the total number of issued shares	0.27%
Influence on shareholders' equity	Only upon the end of two years after the employee stock options were issued can the options be exercised in accordance with the schedule listed in the regulations. The duration is six years, and the shareholders' equity will be diluted year by year after the end of two years from the date of issuance. Moreover, the exercise of employee stock options depends on each employee's personal financial management and stock market prices, and the cash inflow after the exercise can also produce benefits, so it will not have a significant influence on the dilution of shareholders' equity.

Note 1: The issuance of employee stock warrants included the public offering and private placement of employee stock option warrants in progress. The public offering of employee stock warrants being processed refer to those that have already come into effect; the private placement of employee stock warrants being processed refer to those that have been approved by the resolution of the shareholders' meeting.
Note 2: The number of columns may be adjusted depending on the number of transactions.
Note 3: Delivery of issued shares or new shares shall be indicated.
Note 4: If the dates of issuance and processing are different, they shall be indicated separately.
Note 5: If it is a private placement, it shall be marked in a conspicuous manner.

(II) Names of the managers who have acquired employee stock warrants and the top ten employees who have acquired the warrants, with which they can subscribe for the most shares, as well as the acquisition and subscription situation up to the publication date of this annual report

Unit: NT$ thousand; in thousands of shares

Record date: March 29, 2026

	Job title (Note 1)	Name	Number of warrants acquired for share subscription	Number of warrants acquired for share subscription as a % of the total number of issued shares (Note 4)	Exercised (Note 2)					Not yet exercised (Note 2)
					Number of shares subscribed for	Subscription price (Note 5)	Monetary amount of subscription	Number of shares subscribed for as a % of the total number of issued shares (Note 4)	Number of shares subscribed for	Subscription price (Note 6)	Monetary amount of subscription	Number of shares subscribed for as a % of the total number of issued shares (Note 4)
Manager	President	Chen, Fa-Yung	170	0.26	3.75	24	90	0.01	0	24	0	0.00
	Vice President	Chou, Chu-Ting
	Assistant Vice President	Chang, Kuei-Chen
	Assistant Vice President	Wu, Hsun-Chien
	Assistant Vice President	Tan, Min-Li
	Assistant Vice President	Huang, Chun-Hao
	Assistant Vice President	Pan, Chun-Ming
	Assistant Vice President	Wu, Chun-Hsien
	Senior Manager	Lin, Shu-Hsien
	Senior Manager	Huang, Hsi-Yu
	Senior Manager	Kuo, Yi-Fei
	Senior Manager	Wu, Wen-Chung
	Senior Manager	Cheng, Lien-Hung
	Accounting Manager	Li, Ching-Yi
Procurement Manager	Wang, Yu-Ying
Employee (Note 3)	Manager	Huang, Hui-Ching	136	0.20	0	24	0	0.00	0	24	0	0.00
	Manager	Yang, Fang-Ping
	Manager	Wu, Chen-Yi
	Manager	Li, Yu-Hua
	Project Manager	Huang, Wei-Tzu
	Project Manager	Chang, Tsung-Wen
	Project Manager	Tsai, Sheng-Wei
	Project Manager	Yang, Pei-Chen
	Project Assistant Manager	Chuang, Fei-Pei
Project Assistant Manager	Chang, Hsiao-Ni

Note 1: Including managers and employees (those who have resigned or passed away should be indicated), the individual names and titles should be disclosed, but their acquisitions and subscriptions may be disclosed in an aggregate manner.
Note 2: The number of columns may be adjusted depending on the number of issuances.
Note 3: The top ten employees who have acquired the warrants, with which they can subscribe for the most shares refer to employees other than managers.
Note 4: The total number of issued shares refers to the number of shares listed in the change registration with the Ministry of Economic Affairs.
Note 5: The price of employee stock options that have been exercised to be disclosed shall be the price of the stock options upon exercise.
Note 6: The subscription price of unexercised employee stock options to be disclosed shall be the adjusted subscription price calculated as per the issuance regulations.

VI. Issuance of restricted stock awards: None.
VII. Issuance of new shares due to M&A or transfer of shares of another company: None.
VIII. Fund application plan execution: None.
(I) As of the quarter prior to the publication date of this annual report, each of the previous issuances or private placements of securities that has not been completed or has been completed within the last three years and the planned benefits have not yet manifested: None.
(II) Implementation situation: N/A.

Four. Overview of Operations

I. Information on business

(I) Scope of business

Details of the Company's main business scope:

(1) Wired Communication Mechanical Equipment Manufacturing.
(2) Wireless Communication Mechanical Equipment Manufacturing.
(3) Electronics Components Manufacturing.
(4) Data Storage Media Manufacturing and Duplicating.
(5) Computer Equipment Installation.
(6) Wholesale of Computers and Clerical Machinery Equipment.
(7) Wholesale of Telecommunication Apparatus.
(8) Wholesale of Electronic Materials.
(9) Information Software Services.
(10) Wholesale of Computer Software.

Proportion of business operated

Unit: NT$ thousand; %

Product	2024		2025
	Sales amount	Proportion	Sales amount	Proportion
Analog ICs	1,211,577	22.90	3,228,304	36.03
Mixed-signal ICs	1,656,487	31.31	2,632,915	29.39
Radio frequency integrated circuit	590,293	11.15	897,301	10.01
Logic ICs	1,129,950	21.35	890,180	9.94
Others	703,128	13.29	1,310,608	14.63
Total	5,291,435	100.00	8,959,308	100.00

Existing products (services)

(1) Brands of products represented and distributed

We are an agent for: Analog Devices Inc., AMD, ITE, Finisar, Mini-Circuits, Valens, Onsemi, SiMa AI, Bourns, Asmedia, and EmBestor, etc.

(2) Other services

We provide system modules or total solution (solutions provider) design and software services depending on clients' and market needs.

New products (services) planned to be developed

The Company's current development strategy focuses on existing PCs (including industrial PCs), measuring instruments, industrial equipment, and industrial automation in the Asia-Pacific region. For example:

(1) Industrial PCs and its peripheral products, such as routers and USB.
(2) Industrial interface cards, such as analog-to-digital or digital-to-analog converters, and communication interface cards.
(3) Consumer products, such as HDMI extender, display port, among other relevant products, etc.

In addition, the Company's other relevant products, such as fiber optic modules, high-speed audio/video extend products, industrial-grade network products, AI and environmental sensors. All of this aims to push the Company to continue to grow and gradually expand our market share.

(II) Industry overview

Current situation and development of the industry

The product lines represented by the Company are roughly divided into the following six categories:

(1) Analog and mixed signal ICs.
(2) System-on-chip (SoC) and field-programmable gate array (FPGA) products.
(3) High-end audio/video extend systems.
(4) High-definition multimedia interface (HDMI) chips.
(5) Radio Frequency (RF), Microwave (MW)
(6) Generative AI (Gen AI), Physical AI

The following is a description of the current situation and development of the above six categories of products:

(1) Analog and mixed signal ICs.

We live in an analog world, including sound volume, light brightness, weight, temperature, and pressure, all of which are analog signals. The format recognized by computers is digital signals of 0 and 1, so analog signals usually need to be moderately processed, such as the extraction and amplification of weak signals, filtering, sampling, and analog to digital or digital to analog conversion, to convert the analog signals into digital signals that can be recognized by computers. The computer calculation results are usually converted into an analog that human beings understand through the digital-to-analog converter (e.g. the fan speed becomes faster, the indoor lighting becomes brighter) and output. There are many types of analog ICs, such as digital-to-analog converters (DAC), analog-to-digital converters (ADC), amplifiers, multiplexers, and temperature sensors, as well as the main product of domestic analog IC design companies – power management ICs.

Analog and mixed-signal ICs are very different from digital ICs in terms of design. Because of the great difficulty in design, such IC developers need to go through a long period of technological development and accumulate experience to design products in line with the specifications. Therefore, the entry threshold for such ICs is relatively high, and that is why analog and mixed-signal ICs create higher product gross margins.

(2) SoC and FPGA products

The software programmability of the ARM processors and the hardware programmability of field-programmable gate arrays (FPGAs) are perfectly integrated in system-on-chip (SoC) products to enable integrated hardware-software system performance with built-in logic flexibility, expandability and lower power consumption, lower costs, and shorter time to market. Unlike traditional SoC processing solutions, its highly flexible programmable logic enables can optimize and differentiate products with accelerators.

As for FPGAs, with the evolution of semiconductor technology, AMD has developed innovative products that can integrate a large number of logic circuits with software and integrate and realize logic circuits with integrated circuit single-chips. This technology improves the integration, flexibility, and overall performance of digital circuit systems, and the internal structure can be modified depending on different needs without changing the hardware circuit. Due to the large capacity of logic gates in FPGA, it is usually used for functional verification during IC design or to directly replace a large number of logic gate circuits or go with specific functions/image intellectual property (IPs) as an indispensable component to achieve flexible and shorter time to market. The applications are extensive, ranging from aerospace, military, semiconductor equipment testing, industrial computers, instruments, communication systems, high-definition videos, and medical care to storage devices, etc..

(3) High-end audio/video extend systems

As intelligent offices, home audio-visual theaters, and other high-performance audio-visual systems have become more common, the demand for audio-visual transmission equipment with new specifications continues to increase. With advanced image transmission equipment, a meeting in the office can be transmitted to colleagues or clients in different regions by video, enabling real-time interaction and saving time and money spent on transportation. Remote control facilities are adopted to display real-time information or moving product commercials from a central system at crowded airports or stations to maximize the spreading of information and commercial effect. The quality of existing broadcasting devices will be improved with a lower installation cost to improve the business communication and visual effect; as a result, image quality will be comparable to that of a cinema.

The innovative HD-BaseT video transmission and H.264/H.265 video compression technologies are the main solutions for high-end video transmission products. The high definition of 8k x 4k and the wiring method of long-distance coaxial cables or optical fiber allow for improvement of the specifications of office video conferencing, home audio-visual theaters, and other high-performance business audio-visual systems, to meet the needs for high-end audio-visual transmission.

(4) HDMI chips

HDMI (High-Definition Multimedia Interface) is an all-digital audio/video transmission standard used to transmit uncompressed high-definition video and multi-channel digital audio. HDMI integrates video, audio, and control signals into a single interface, and it is currently the most common consumer and professional audio/video transmission standard. A popular audio-video transmission interface used in home appliances and consumer products. HDMI supports high-resolution video and multi-channel high-frequency audio, giving consumers a better audio-visual experience. HDMI also supports the dual-way transmission of the Consumer Electronics Control (CEC) function. The HDMI cable can be used to control the equipment connected with each other and the ones supporting the CEC protocol. In addition, the ARC (Audio Return Channel) function can also be used. The display can use the ARC function to return the audio signal to the family movie theater and other devices through the same HDMI cable, reducing the use of excessive wires.

In addition to its smaller and more compact form, HDMI's innovation lies in its ability to transmit both video and audio simultaneously. Unlike analog signals, which require one cable for video and one cable for audio, now a single HDMI cable can be used for video and audio transmission. HDMI has also gone through many revisions, from version 1.0 to the current version 2.1, allowing HDMI to deliver higher quality and greater throughput.

(5) Radio Frequency (RF), Microwave (MW)

The Radio Frequency (RF) falls between 20 KHz ~ 300 GHz. The core technology includes the use of frequency modulation/coupling/mixing/frequency multiplying and power amplification/splitting/switching, etc. Wireless communication/measurement instrumentation/microwave energy and other related applications require devices with this type of technology.

The demand for wireless communications is increasing day by day, ranging from LTE/5G/6G equipment and terminal devices, antenna modules and signal converters for satellite communications/radar, head-end equipment for cable broadband systems, radio frequency measurement instruments, to factory automated test equipment, etc., all of which require radio frequency components to provide signal transmission and processing technology. It is expected that the components will continue to develop with higher frequency bands and expand market areas.

(6) Generative AI (Gen AI), Physical AI

Generative AI (GenAI) is an artificial intelligence technology that can be trained on large amounts of data, learn patterns and structures, and then create new content (such as text, images, music, code). GenAI represents a major advancement for AI, shifting it from "analysis" to "creation," and it is commonly seen in applications, such as ChatGPT, Gemini, and Midjourney. GenAI is able to significantly improve content creation and work efficiency.

Physical AI enables real-time learning and adjustment of automated systems through sensors, data models, and reinforcement learning. This technology has been widely used in:

Medical field: Smart surgical robotic arm, patient assistance device
- Transportation industry: Advanced autonomous vehicle technology and accident prevention system
Retail logistics: Warehouse management and customer interaction robot
- Manufacturing industry: Smart production line and self-adaptive assembly system
- Disaster response: Search and rescue and disposal robots for dangerous areas

Relations between the up-, mid-, and downstream industries

(1) Diagram of relations between the up-, mid-, and downstream industries

Upstream

Suppliers of for industrial, network communication, consumer electronic, and optoelectronic electronic components, and electronic components for computer peripherals.

Midstream

Professional semiconductor and electronic component distributors

Downstream

Manufacturers for industrial, network communication, consumer electronic, and optoelectronic equipment, and equipment for computer peripherals.

(2) The Company is an agent and distributor of semiconductor components as a bridge in the midstream industry between upstream semiconductor suppliers and downstream finished product manufacturers. The relations between upstream and downstream industries are specified below:

For upstream component suppliers, distributors should highly cooperate with their product sales, create demand and technical support and integrate market information to establish a suitable supply and demand chain with each supplier. As a result, suppliers can develop more competitive semiconductor and electronic components and make up for the shortage of their manpower and services, thereby providing clients with better technical support and sales services and helping increase their market share.

For downstream product equipment manufacturers, distributors not only provide technical services but provide product application positioning services and total solutions, enabling manufacturers to develop products with competitive functions and competitive prices and make the most of distributors' channels for sales. Also, distributors provide inventory services to reduce manufacturers' inventory costs and reduce the risks that they need to assume in their business.

As far as Taiwan's distributors are concerned, semiconductor component distributors and agents serve as a bridge between upstream original equipment manufacturers and downstream manufacturers so that they are more sensitive to world-renowned upstream semiconductor manufacturers' or downstream system clients' business trends, market product development trends, and the changes in the business cycle of the semiconductor industry, and can respond faster compared with other electronics industries. Semiconductor products have been widely applied to all industries, and its market scale has continued to grow rapidly, which also resulted in obvious changes in the distribution.

Therefore, how to keep abreast the changing trends of the industry structure and the competitive environment and understand various distributors' characteristics, conditions, and competitive advantages are an important part of managing semiconductor product distributors.

3. Various product development trends

Analogy refers to the things that human beings can feel in the real world, and analog signals include sound, light, audio/visual, temperature, speed, mass, and physical quantity. In the era of digitization, the conversion between analog and digital signals is becoming more important. For example, sounds are digitized and burned onto CDs for storage but still need to be converted into analog signals before they can be listened to, and the temperature and speed are quantified into numerical values for easy recording or control. As a result, our daily lives are always between analog and digital signals.

After physical quantization, complex computation, controls, and conversions can be conducted digitally. At this time, digital signal processors: DSP and FPGA with powerful computing functions are required, e.g. smartphones, game consoles, industrial monitors, instruments, and medical testing and analysis devices currently on the market all require powerful digital signal processors.

In the era of knowledge explosion, information from all over the world is transmitted rapidly through mobile phones, TVs, mobile networks. At present, 4G/5G mobile networks are the fastest and most convenient means. Either companies or homes/wired or wireless transmission, information needs to be shared through routers or 4G/5G networks.

With the generation of massive knowledge data and the popularization of high-speed network transmission, the rapid development of artificial intelligence (AI) in recent years has further reshaped the development direction of terminal products. If digitization and networking are the backbone and nerves of products, then AI is the key core that gives these devices a "brain." This has prompted hardware products to increasingly incorporate dedicated AI acceleration chips (such as NPUs) in addition to the original DSP or FPGA, allowing smartphones, surveillance cameras, and even smart wearable devices to perform real-time voice recognition, image analysis, and decision-making even when offline.

The product development of the future is not simply about pursuing digitization or upgrading hardware specifications but moving toward an intelligent ecosystem with highly integrated powerful edge computing, high-speed network transmission, and AI algorithms. People's lives will be inextricably linked with these digital devices that have perception and learning ability.

The development trend of each product is briefly described below:

(1) Analog components: ADI

At present, in the global semiconductor industry, most of the analog components are manufactured by overseas manufacturers, including ADI, TI, ST, Japan's Renesas, NXP in the Netherlands, all of which are very famous analog semiconductor manufacturers.

Analog components, including various precision operational amplifiers and high-speed, RF, differential, and instrumentation amplifiers, ADCs, and DACs, etc., are used to quantify analog signals in reality and convert them into digital data for transmission, storage, computation, and comparison, to streamline all kinds of inconveniences in the analog world. For example, to quantify the weight of an item, we only need to put the item on an electronic scale, and the number will be displayed, rather than comparing many items with different mass values.

The Company currently represents ADI's products, which is one of the world's leading analog component manufacturers, and the market share of its operational amplifiers is the largest in the world. Founded in 1965, ADI has 50 years of extensive experience in analog components. Its existing products exceed 10,000 units of components with its diverse designs and excellent quality, ADI has witnessed a growing

101

trend year by year. In the system circuit design, it can provide analog and digital components with the most excellent performance.

The ADI product lines represented by the Company are as follows:

Product line	Sub-category
Amplifiers and comparators	Buffer amplifiers, comparators, current-sense amplifiers, differential amplifiers, optical fiber limiting amplifiers to fiber logarithmic/limiting amplifiers, fiber trans-resistance amplifiers, gain control amplifiers, instrumentation amplifiers, isolation amplifiers, LCD drivers, line driver operational amplifiers, and variable gain amplifiers.
D/A converter (DAC)	DAC, audio DAC, digital potentiometer, and video encoder.
Micro-electromechanical system (MEMS) sensors and temperature sensors	MEMS accelerometer, MEMS gyroscope, analog temperature sensor, and digital temperature sensor.
RF and IF devices	Baseband processors, cable TV amplifiers and distributors, clock and data recovery, clock distributors, differential amplifiers, digital crosspoint switches, direct digital frequency synthesizers (DDS), optical fiber transimpedance amplifiers, gain modules, logarithmic amplifiers and detectors, mixers and multipliers, modulators, and demodulators, PLL frequency synthesizers, and VCOs, RF and IF transceivers, RF switches, RMS detectors, short-range transceivers, and variable gain amplifiers.
Power management	Battery management controllers, current source controllers, energy harvesters, charge pumps, power isolating controllers, LED drivers, LDO linear regulators, PMIC and multifunction controllers, power controllers, supercapacitor controllers, switching regulators, and uModule regulators.
Audio and video Products	Audio ADC, audio codec, audio DAC, audio signal processors, camera and camcorder active front end (AFE), display interfaces, sample rate converters, video codec, video compressors, video decoders, and video encoders.
Interface converters	Isolators, level converters, isolated gate drivers, RS-232 interfaces, RS-485 interfaces, and CAN BUS transceivers.
Other linear products	Multipliers, LVDT sensor amplifiers, matching transistors, RMS AC-DC converters, and sample-and-hold amplifiers.
Other products	ATE, military, and aviation products, multiple industrial interface networks, automotive BMS, HDMI 2.1, GMSL, etc.

Source: www.analog.com (ADI's website)

(2) Digital signal processor (DSP): ADI

DSP refers to signal processing technology in the early days. It was not until 1982 that DSP has been adopted as the name of a new high-speed processor. Initially, the application of DSP was limited to professional data communication and voice processing. However, the gradual expansion of digital technology in the consumer electronics market has served as a new stage for DSP, and it has occupied a critical position as the core engine of digital information products. With the advancement of DSP technology, new application products will continue to emerge and be adopted in our daily lives. DSP-based and programmable solutions are available to be adopted by

general digital consumer electronic product manufacturers. Some of the more important features include:

High flexibility
Manufacturers can simply change the software codes to achieve different application performance without investing heavily in the development of customized ICs. For example, MotionJPEG, MPEG4, H.264, as well as encoding/decoding switching can be carried out on the same platform without multiple ASICs.
Reduction of resource waste by manufacturers in IC manufacturing processes
Compared with the great deal of time and money put in the customization and modification of ASIC hardware, programmable solutions allow software to achieve the same system performance at lower costs and with less time.
Shortest time to market
DSP applications are applied widely, ranging from special-purpose military radars, missiles, medical care products, to general consumer electronics, such as digital cameras, VOIP, PMP, DVR, digital TV, mobile players, digital radios, and set-top boxes. More applications will have DSP adopted, including motor control (sensorless DC brushless motors, switching backup motors, and variable reluctance motors), network connection devices, automotive products (car audio systems, parking assistance systems, lane departure warning system (LDWS), automotive computers, noise reduction systems, active damping control systems), multi-function phones (caller identification, echo/noise cancellation, dual-tone multi-frequency (DTMF)), digital answering machines (speech compressors), line interface cards (echo cancellation), POS terminals (encryption or dial-up softmodems), vending machines (softmodems or coin identification systems), biosecurity systems (e.g. fingerprint identification), uninterruptible power supply systems, power supply management systems, and natural human-machine interfaces (speech recognition/synthesis systems).

With accelerated digitization, DSP can be applied to more digital consumer electronic products. There will be more digital electronic products with powerful functions at lower prices in the future market. In the rising consumer electronics market, DSP will create a more sophisticated digital world for a large number of consumers.

The global market of general-purpose digital signal processors is still dominated by TI, Analog Devices, and Freescale.

(3) SoC and FPGA products.
Xilinx's main products, FPGAs and SoCs, are mainly applied in aerospace, industrial standards, artificial intelligence (AI), edge computing, 5G/satellite wireless communications, and are integrated with AMD's expertise in high-performance computing to seize business opportunities in data centers. After AMD acquires Xilinx, the new AMD will have a complete line of products, ranging from CPUs, GPUs, FPGAs, and SoCs to software, with its business spanning many fields such as personal computers, data centers, 5G/satellite communications, automotive chips, game products, as well as aerospace and national defense products. From game consoles to supercomputers, AMD has it all. The cost of semiconductor chip design increases as the manufacturing process evolves. Due to the cost-effective factors, ASIC and ASSP are being replaced by FPGA/SoC. FPGA/SoC provides flexible, highly integrated, and low-risk solutions and enables short time to market to digital system designers worldwide. FPGA/SoC has become a platform for various higher-level system-level functions and will dominate the development of the logic device industry in the future.

AMD-Embedded Group represented by the Company, is the world's leading U.S. supplier of total programmable logic solutions. AMD develops, manufactures, and sells

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a wide range of programmable ICs, software design tools, and intellectual property (IP) as pre-defined system functions. Customers use AMD and automated software tools and IP to program the devices to carry out specific logic operations. AMD's programmable logic solutions reduce the risks assumed by electronic device manufacturers by reducing the product development time and the time to market. With AMD's programmable devices, clients can design and verify their circuits faster compared with the traditional methods, such as gate array. Also, as AMD components are standard parts that only need to be programmed, clients do not need to wait for samples or bear a huge cost as they did with gate array.

AMD adopts TSMC's highly advanced technology to integrate ARM/FPGA digital and high-speed analog RF technology to create the Zynq® UltraScale+™ RF SoC, while launching products with higher RF performance and greater expandability. On the basis of the successful experience of basic Zynq UltraScale+ RFSoC products in multiple markets, it has evolved to the fourth-generation RFSoC DFE. The new-generation components can cover all sub-7.125GHz frequency bands, meeting the critical needs for establishing a new generation of 5G networks and WiFi7. The new component supports direct RF sampling and includes a 14-bit ADC with sampling up to five billion times per second (GS/S) and a 14-bit DAC with sampling up to 10 billion times per second. The analog signal bandwidth of both is as high as 7.125GHz. Building upon this success, AMD has further launched the Versal™ AI RF series. The platform introduces the "AI engine" (AIE) designed specifically for AI calculation, which delivers outstanding digital signal processing performance and power efficiency ratio. The Versal RF series that followed pushes performance to the extreme. Its RF-ADC sampling rate reaches 32 GSPS, while the analog bandwidth expands to over 18 GHz, directly supporting high-frequency applications such as Ku-band and satellite communications, thereby simplifying the design of millimeter-wave systems.

AMD's adaptive compute acceleration platform (ACAP) has ushered in a new era of rapid innovation for all developers developing any applications. Versal ACAP integrates a scalar processing engine, a self-adjusting hardware engine, and an intelligent engine, as well as cutting-edge memory and interface technology, which can provide powerful heterogeneous accelerated functions for all applications. Versal ACAP's both hardware and software can be programmed and optimized by software developers, data scientists, and hardware developers thanks to its series of tools, software, libraries, IP, middleware and frameworks in line with the industry standard design flow.

With TSMC's 7nm FinFET process technology, the Versal product mix is the first platform that has combined software programmability and domain-specific hardware acceleration and adaptability, which is essential to catch up with today's rapid innovation process. The product mix consists of six series of devices whose unique architecture enables expandability and AI inference for numerous applications in different markets, ranging from cloud, the internet, wireless communications, edge computing to endpoints.

With the explosive development of AI and big data and the slowdown of Moore's law, the industry has reached a critical turning point. The chip design cycle has already been unable to catch up with the innovation pace. After four years of development, Versal is the industry's first ACAP. We have uniquely designed it to support all types of developers to accelerate their applications with optimized hardware and software, while equipping it with real-time flexibility to keep pace with the rapid development of technology.

AMD released Versal Premium VP1902, the world's largest chip. Compared to Xilinx Virtex UltraScale+ VU19P, the previous generation, Versal, an AI dedicated processor, has been added, doubling performance specifications. Chiplet has been adopted, and the size is about $77 \times 77 \mathrm{~mm}$ , with 18.5 million logical units and dedicated

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Arm core for controlling plane operation and assistance with the calibration of the PCB network. The supply of AMD was fully completed in early 2024. Meanwhile, AMD provides source codes for the open source code communities, such as Linux, FreeRTOS, OpenAMP, Yocto, QEMU, and XEN. Furthermore, AMD's software development kit (SDK), PetaLinux's tools, and runtime drivers and libraries make the comprehensive product lines more complete and the application development much easier.

AMD also introduced the Kria System-on-Module (SOM), an integrated embedded, pluggable, credit card-sized Arm SoC-based solution. When the SOM is used with a low-complexity printed circuit board carrier card designed by the end user, it only needs to adopt a simple set of open connectors to solve the connection and additional component requirements of the user's terminal system, and it can be integrated into systems deployed in mass production.

In response to the stringent requirements for cost and energy efficiency at the edge, AMD introduced the Spartan UltraScale+ series. This new generation FPGA brings 16nm FinFET architecture to the entry-level market, offering the industry's highest I/O density. It also introduces—for the first time—a security mechanism supporting post-quantum cryptography (PQC) while reducing power consumption by 30%, providing a secure and cost-effective solution for applications such as machine vision, industrial automation, and medical imaging.

(4) HDBase T: Valens

Valens is an Israeli semiconductor company founded in 2006. HDBaseT is a standard established by Valens, and the HDBaseT Alliance was founded with LG Electronics, Samsung Electronics, and Sony Pictures Entertainment in 2010. At present, this technology has been applied in various audio-visual entertainment environments and systems. The HDBaseT standard can not only provide networking functions for home multimedia devices but is taken on power transmission to reduce the wiring of power lines. As per the HDBaseT standard, during the HDMI I/F to HDMI chip process, regarding the details of audio and video input and output related to all signal sources and receivers, HDBaseT has expanded the fields of application to high-definition video, audio, network, control, and power, with an emphasis on the concept of 5-in-1 function. As a result, long-distance transmission and easy installation are made possible through transmission cables that can be found anywhere. Valens further promoted the standard in the automotive market in 2017 and integrated multiple signals into a single twisted pair to reduce the intricate wiring in and weight of a car. At the end of 2018, a low-cost chip was developed to be applied to USB2.0 solutions that need to transmit data over distances of 100 meters, with only a twisted pair required. Third-generation ProAV products have entered mass production and delivery in 2022. They can support product development of 4K60 audio-visual transmission specifications, leading to many successful opportunities in the applications of integrated medical detection systems, audio-visual signal extenders, and high-end video systems.

Valens is headquartered in Israel and has branches or offices in the United States, Japan, Korea, China, Hong Kong, and Taiwan.

(5) HDMI chips: ITE

Founded in 1996 and headquartered in the Hsinchu Science Park, ITE Tech. Inc. (hereinafter referred to as "ITE") is a professional Fabless IC design company. Its core technology is deeply rooted in PC/NB control chips (such as Super I/O, embedded controllers), and has expanded to high-speed audio and video interfaces (HDMI), Flash control, touch, digital TV, and e-paper applications. AMD is a global leader in PC input/output control chips. The core technology of ITE includes High Speed Serial Interface, Video Codec, Touch Sensory, Surveillance, OFD and Sensor Fusion, etc. Products developed include:

In the transmitter (TX), receiver (RX) and converter of high-speed connection

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products, image interface applications include HDMI 2X, Displayport 1X, eDP 1X, MIPI-DSI/CSI, Vby One HS and Type-C, etc. HDMI 2X Matrix/Splitter/Switch and Re-timer solutions are also available to support various types of A/V equipment, such as: The Company's products include numerous audio and video products such as KVM, Docking, Dongle and Video Extender, including the automotive, industrial, corporate and consumer markets.

Surveillance products, the transmitter (TX), receiver (RX), module (Modulator) and video grabber of DTV digital TV, and the telecommunication equipment, set top boxes and image grabber systems used by telecom carriers around the world.
Personal computers (PC) and notebooks, output and input chips (Super I/O), bridges, and embedded controllers, etc.. The company to develop extended product applications for Notebook, Tablet PC, Transformer Pad, AIO, education market and industrial PC, including low power keyboard control IC, gaming NB keyboard control IC, keyboard lighting control IC, Chromebook keyboard control IC, sensor control chip, high-speed audio and video interface signal enhancement IC, and Type C control IC. Its products fully support the latest Intel/AMD/ARM chipsets, and we will continue to develop high-performance and highly integrated RISC-V ECs to satisfy customers' needs, and to proactively expand into the new-platform notebook market.
Multimedia products support the automotive System on a Chip (SoC). Used for control of various panels, such as integrated control solutions, including home appliances, motorcycles, and automobiles.

(6) Fiber optical communication products: Finisar

Finisar, with its more than three decades of expertise and successful mass production experience in the optical technology field to transform the future of communications technology. The markets benefiting from the use of optical devices are as follows:

Optimized fiber-optic solutions to data center applications

The network structure and size of data centers are experiencing rapid changes. Considerable investments made are to develop new optical modules to satisfy the demand for ever-increasing bandwidth, low power consumption, and wider coverage. Much more fiber-optic network has been established than ever before. The transmission speed of modern data centers is 10 Gb/s or higher is common, surpassing the transmission speed of electrified or connected copper cables. In today's data center market, optical modules need to be used extensively to connect servers, switches, and storage devices. Multimode fiber (MMF) continues to be used for data centers where the connection distances are within 300 meters at the lowest cost and with the lowest power consumption for troubleshooting connections. Active optical cables enable a simple and low-cost solution to connection with a coverage range of fewer than 20 meters. Within the range, Finisar's Vertical Cavity Surface Emitting Laser (VCSEL) technology has been widely used in optical fiber communication transceivers, and its reliability and performance have been verified to meet the modern data centers' needs.

For the long-range coverage with single-mode fiber (SMF), Finisar provides a wide range of leading and innovative product mixes. Such fiber-optic solutions are suitable for applications in data centers as well as bridging longer distances between data centers. Such products can support 10G Ethernet, 40G Ethernet, and 100G Ethernet applications in different packages such as SFP+, QSFP+, QSFP28, CFP/CFP2/CFP4, as well as X2 and XFP, covering a range from 2–10km to 80km. To meet the growing demand for consumer and corporate cloud services, the rapid expansion of data center infrastructure has prompted suppliers to quickly increase their production capacity to cope with unscheduled orders without compromising

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product quality and reliability.

Enterprise network

Businesses of all scales use optical fibers to get connected. Optical fibers are ubiquitous in schools (from buildings to buildings), buildings (between floors), enterprise data centers, and data centers, and network nodes. Enterprises need interoperable and standards-based equipment for diverse IT functions and rely on fiber optics (communications) to provide reliable and high-speed data transmission to their end users with the minimal disconnection time. Over 20 years, Finisar has been a leader in the application of fiber optics (communications) to enterprise networks. Many advanced applications rely on Finisar's fiber optic transceivers. Finisar's comprehensive standard-based fiber optic transceiver product lines, including SFP, SFP+, XFP, X2, QSFP+, QSFP28, and various packaged products: CFP, CFP2, and CFP4, are very suitable for enterprises and all applications from Gigabit Ethernet to 100G Ethernet. They can be applied to various Ethernet switches, routers, and NIC cards at the same time. Finisar is a leader in modern storage networks. In 1994, Finisar was the first optical device company that has adopted Fiber Channel (FC) for VCSEL-based products. Since then, FC has become a Trusted Network Connect protocol for key business data. Today, FC is the most widely used channel in most enterprise storage applications. As the world's largest supplier of FC modules, Finisar's modules applied to most FC switches, host bus adapters (HBAs), and storage systems.

Finisar's FC modules feature excellent performance, interoperability, backward compatibility, and reliability. Our products cover six generations of FC speeds, including 1x, 2x, 4x, 8x, 16x, and 32x FC, and support short-wave optical devices for multimode fiber optics, long-wave optical devices for single-mode fiber optics or FICON, and the wavelength division multiplexer (WDM) between data centers. Moreover, we offer a variety of Ethernet modules for Fiber Channel over Ethernet (FCoE), network-attached storage (NAS), and iSCSi applications.

Consumers want more contents delivered to the home and up to gigabits of data transmitted per second. Small businesses are also seeking data networks with higher transmission speeds and greater reliability. To meet such needs, multiple system operators (MSOs) should increase their access network bandwidth with their limited fiber optic resources. Meanwhile, there are too many devices in the network headend and hubs, so MSOs have launched a green initiative to reduce energy consumption. Finisar offers fiber optic solutions for hybrid fiber coaxial (HFC) networks, passive optical networks (PON), and Power Over Ethernet (PoE) that can increase network capacity, save space, and reduce power consumption. Finisar's tunable DWDM full-band DOCSIS 3.1 transmitters allow MSOs to use their limited fiber optic resources to provide energy-saving and wavelength-flexible HFC networks that can be further divided. These small packaged pluggable optical modules can be directly installed on the converged cable access platform (CCAP), further reducing operators' space needed and energy consumption.

In addition, Finisar provides fiber optic solutions to RF over Fiber, EPON, GPON, and 10G PON. PON ONU pluggable optical modules conform to the DOCSIS Provisioning over Ethernet (DPOE) requirements.

High-density, flexible, and on-demand next-generation DWDM transmission solutions

The increased network traffic of applications, such as wireless network backhaul and cloud computing, has forced the industry to seek more flexible transmission solutions with higher spectral efficiency to improve the network utilization. Today's mesh networks are based on 10G adjustable modules and first-generation WSS technology. Coherent detection and FlexGrid(R) WSS are key

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factors for the next-generation SDN architecture, and Finisar continues to be at the forefront of such market evolutions.

Finisar provides a wide variety of DWDM product mixes, including 10G and 100G tunable transceivers, WSS, and optical fiber amplifiers. Finisar's various differentiated optical technologies have realized an unparalleled level of vertical integration. Its products range from different packages of lasers, optical modules, line cards, and rack mounts. Finisar, from DWDM XFP to CFP2-ACO, has been the industry leader in the evolution of transmission applications to high-density pluggable fiber optic transceivers.

A wide variety of product mixes and technologies for access networks

When the optical fibers are further promoted to clients, the increasing business internet services, cloud computing, mobile broadband, and residential gigabit broadband services are all pushing up the need for higher bandwidth. To meet such needs, operators should continually upgrade and increase the capacity of their existing fixed access networks, such as VDSL, wired broadband, and PON, while supporting clients' traditional equipment. To support the long-term development of their services, operators continue to seek higher-speed, more scalable, and higher-density next-generation access solutions, such as 10G PON, NGPON2, and RF over fiber. Finisar provides a comprehensive range of fiber optic transceiver products to support the upgrade of access networks, including EPON/GPON, traditional SONET/SDH (OC-3/STM1, OC-12/STM4, and OC-48/STM-16), high-speed Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, and 100 Gigabit Ethernet. The packages available for the products include SFP, $\mathrm{SFP + }$ , XFP, and SFF. Finisar's products are designed to optimize the use of optical fiber, such as CWDM/DWDM SFP and bi-directional (BiDi) $\mathrm{SFP + }$ modules. Also, Finisar provides high-speed tunable wavelength optical devices with an advantage in costs and single-fiber bidirectional modules, which can facilitate the network convergence, the continuous scale expansion, and better bandwidth efficiency to meet the needs of next-generation access networks.

Rapid growth of mobile broadband facilitated by a wide variety of product mixes

The penetration of smartphones around the world has led to an explosion in demand for mobile bandwidth. Wireless carriers have upgraded their networks to 3G or 4G/LTE and soon to 5G, to strive to keep pace with this demand. Such upgrades require substantial update of radio and RF technologies and a transformation of the infrastructure from a copper-based architecture to the one on the basis of fiber optic transmission. More wireless networks are set up using distributed antennas away from base stations, leading to a huge new market for fiber optic transceivers, i.e. the fronthaul portion of wireless networks. Also, the need for higher bandwidth for wireless backhaul means that fiber optic technology will be used more often.

Finisar has comprehensive product lines of fiber optic transceivers for wireless infrastructure. We provide a comprehensive mix of the Common Public Radio Interface (CPRI) modules suitable for outdoor equipment applications (i.e. industrial temperatures: -40 to $85^{\circ}\mathrm{C}$ ) that connect base stations to antennas. Such modules support speed of 2.5 Gb/s to 10 Gb/s, distances from 300m MMF to 40km SMF, as well as WDM and single-fiber BiDi modules. Moreover, Finisar can provide more modules suitable for wireless backhaul applications, covering Fast Ethernet, SONET/SDH OC-3/STM-1 to OC-48/STM-16, Gigabit Ethernet, and 10G Ethernet.

Optical interconnect technology

We adopt the high performance computing (HPC) as the interconnect of many computing, storage, and networking systems for high levels of computing power for the hardest mathematical problems. In the cases of weather forecasting, biosimulation, seismic data analysis, or big data analysis, the interconnection

between many independent units of high-speed fiber optic components provides values greater than the sum of each part.

Finisar provides optical interconnect communications for HPC. The wide variety of our product solutions ranges from active optical cables (for easy use), to embedded optical engines (highest density and lowest cost) and high-bandwidth pluggable transceivers (high flexibility). What all of our products have in common are continuous improvements to bandwidth density and lowest power per bit, with quality, reliability, and availability guaranteed.

Infrared light is adopted for measurement, sensing, and control in our living environment

Most consumers are familiar with gesture recognition, as used on portable devices with touchscreens, to sense touch or finger movement as part of the user interface. However, the range of potential applications for 3D sensing is much wider than this. By emitting invisible infrared light from optical components that distribute the light into a structural model or an area of light, the system can capture longitudinal information across an entire room. This enables individuals to control games or their entire entertainment center with body movements. As for future mobile devices, 3D sensing will augment the camera capabilities, enabling the image captured by the camera to augment reality, thereby identifying objects and capturing longitudinal data.

Finisar's VCSEL technology features the advantages of low cost and high optical efficiency in a miniaturized package. VCSEL also features wavelength stability when the temperature changes and good directivity, which enables the maximum output efficiency after focusing. With the focused coherent light, the efficiency of VCSEL is 10 times more than that of LEDs in the same package. To meet clients' needs for gesture recognition and 3D sensing, Finisar's technology can be integrated with all other optical components, electronic equipment, and logic control units in the same package. Alternatively, Finisar's components can be customized to meet the precision, power, size, packaging, and cost requirements.

Rugged and high-reliability fiber optic solutions

More aircraft, ships, and military vehicles are equipped with electronic equipment connected for communication. The challenges arising from the space, weight, and particularly electromagnetic interference (EMI) are even daunting. When two objects are very close, the traditional electronic devices with copper cables to transmit data cannot operate reliably and may even experience interruptions during data transmission. The signals transmitted through the optical fiber will not produce EMI signals and, thus, will not be interfered by external EMI signals. Such features allow the fiber optic solutions to eliminate bulky copper cables, saving space and reducing weight.

Finisar provides rugged and high-reliability fiber optic solutions for military and aerospace applications. Such solutions are designed to meet the military requirements for shock and vibration specifications and allow for a wider range of storage and operating temperatures. The products in our Endurance® product line, suitable for operations in dangerous environments, feature internal conformal coating. The metal casing of the fiber optic transceiver minimizes the impact of EMI. Finisar's laser technology is highly reliable with an average downtime of less than 10 parts per million, and the digital diagnostic function in the module can provide an early warning of a failure in the data link.

Optical transmission solutions for the harshest industrial environment

A wide variety of fiber optic transceivers is available for industrial applications. Harsh environments pose many challenges to network equipment, including great temperature swings, dust, vibration, and shock. EMI also often impacts the reliability

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of data transmission through copper cables, while the equipment must be separated due to the noise or dangerous voltage environment. Fiber optic transmission technology provides a reliable solution for data transmission in such environments. As industrial production sites have become more connected and Ethernet and IP networks become more common, the fiber optic technology and products chosen have also become more critical. Finisar's industrial solutions are based on the modules with the same technology. The modules have been developed by us for the Ethernet and FC products over the past few decades. Enhanced packaging, a wider scope of operating temperatures, and stricter quality requirements ensure that our optical devices and modules can operate reliably in harsh environments. (Source of data: https://ii-vi.com/)

(7) Radio Frequency (RF), Microwave (MW): Mini-Circuits

Mini-Circuits was founded in the United States in 1968 with comprehensive design, manufacturing, and sales capabilities in RF and microwave technology related components. Its sales channels cover 30 countries worldwide, offering 27 product lines with over 10,000 devices and components for sale.

Products are used in a wide range of commercial, industrial, and military applications including wireless communications, aerospace, satellite, military specifications, cable/broadband, RFID, test instruments, diagnostic imaging and more. Over the past 50 years, stringent quality standards, innovative design capabilities, world-class customer service, and long-term stability have made Mini-Circuits the supplier of choice for more than 20,000 customers worldwide.

Low Temperature Co-fire Ceramic (LTOC) Passives

LTCC Passives are made of capacitors and inductors, embedded in a multi-layer, decentralized structural ceramic substrate and sintered into a single integral part. The Mini-Circuits design team has the most advanced knowledge of LTCC technology in the industry based on more than 20 years of R&D and multiple active patents. Products include signal couplers/filters, power filters, filter modules, transformers/differentials and other components.

Monolithic Microwave Integrated Circuits (MMIC)

MMICs are integrated circuits fabricated on semiconductor substrates and sold in surface mount packages or as bare dies for chip and wire assembly. The miniature circuit MMIC are designed and packaged in Mini-Circuits' own facilities using pHEMT, HBT and IPD fabrication processes on gallium arsenide (GaAs). There are currently over 700 models on the market and new devices are being added all the time. Products include signal amplifiers, signal attenuators, biasers, couplers, equalizers, non-reflective filters, mixers, multipliers, power dividers, power switches and other components.

RF / MW Test Solution & Components

Mini-Circuits' test solutions help customers improve test efficiency and increase data throughput without spending a lot of money; they can be scaled and reconfigured as R&D needs change, and the product family is available with a wide range of in-stock components from DC to 100+ GHz and supports the industry's fastest lead times. (Source of data: https://www.minicircuits.com/)

(8) Generative AI (Gen AI), Physical AI: SiMa.ai

As a leader in the field of physical AI, Sima.ai is committed to building a software-centric dedicated platform to deliver top-notch performance, energy efficiency, and ease of use for physical AI applications. SiMa.ai focuses on extending physical AI to robotics, automotive, industrial automation, aerospace and defense, smart vision, and healthcare, among other fields. The company is led by experienced technology experts and backed by top investors. SiMa.ai is headquartered in San Jose, California. Sima.ai is a "software

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first" machine learning company. Its MLSoC™ platform is designed to solve the most difficult edge computing challenges, delivering performance-to-power ratio 10 times better than the industry average and making ML deployment at the embedded edge easy and scalable.

The core strength of the Sima.ai platform lies in the perfect integration of software and hardware. Palette™ software, exclusively developed by Sima.ai, eliminates underlying coding and focuses on "one-click" easy realization of edge ML. The software provides a wealth of APIs and Palette Edgematic's graphical drag-and-drop interface, allowing developers to complete prototype designs of complex computer vision pipelines within minutes without tedious manual coding. MLSoC™ hardware is a system-on-chip (SoC) dedicated to AI. MLSoC™ efficiently integrates a machine learning array of up to 50 TOPS, a computer vision processor, and an Arm® host processor that runs Linux on a single chip. MLSoC™ provides powerful ML computing capabilities with extremely low power consumption and can run complete edge ML applications independently.

SiMa.ai's low-power, high-performance integrated solution is an ideal choice for the broader edge machine learning market, particularly for mobile and battery-powered high-performance ML systems. This low-power, high-performance integrated solution is widely applicable in fields such as industrial identification, structure detection, robotics, drones, medical applications, and automotive systems.

(9) Passive and protection components: Bourns

Established as an industry leader: Since its founding in 1947 by Marlan and Rosemary Bourns, Bourns has grown into a global leader in power management, circuit protection, and sensing solutions, dedicated to providing customers with the most reliable electronic solutions.
Outstanding EMC compliance expertise: Bourns offers professional protection solutions for electromagnetic compatibility (EMC) challenges, such as ESD (electrostatic discharge), EFT (electrical fast transient), and lightning surge, fully in compliance with international standards (such as IEC 61000 series).
Innovation in core protective technology: Bourns' PTVS diodes significantly outperform traditional MOVs in terms of performance. They not only offer lower clamping voltages but also boast extremely high reliability, resisting aging and degradation even after multiple surges.
IsoMOV™ hybrid component technology: Leveraging global patents combining MOV and GDT technologies, IsoMOV™ delivers industry-leading energy handling capability and a long lifespan while reducing component size. The technology is an ideal choice for AC power protection.
TBU® high-speed isolation protection: Bourns' exclusive TBU® high-speed protector effectively blocks transient overcurrents in less than 1 microsecond, providing extremely fast and precise circuit isolation for telecommunications, industrial, and automotive electronics.
Complete 48Vdc telecom solution: For 5G and other base station equipment (such as RRUs), Bourns offers a complete 48Vdc protection link, including PTVS, GDTs, and power inductors, to ensure stable infrastructure operation.
Diversified product portfolio: In addition to circuit protection, Bourns has a wide range of magnetic component series to support emerging applications such as single-pair Ethernet (SPE), and offers a variety of power transformers and common mode inductors.
High-precision sensing capability: The Bourns current sense resistor series covers metal foil and metal plate technology and fully supports the AEC-Q200 automotive-grade standard to meet high-precision requirements from industrial automation to

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electric vehicles.

Globalized production and outstanding lean management: Bourns' production centers worldwide are dedicated to lean production, combined with strong R&D capabilities, to ensure product competitiveness and supply stability.
Customer-focused vision: Bourns' vision is to be the preferred partner for global customers seeking electronic solutions, safeguarding every aspect of technological products through innovation and quality.

4. Competition situation

The Company, building on the foundation for analogy, has been deeply involved in industrial and instrumentation (I&I) applications for 20 years and has worked with about a total of 1,500 clients with various applications, while having developed long-term partnerships on the basis of mutual trust and positive interaction. The fields in which we engage include: (1) industrial products, including industrial surveillance, automatic test systems, wireless applications, micro-mechanical products, and medical devices; (2) consumer products, including digital flat-panel displays and digital signal processing; (3) network communications include RF transceivers. In addition to a complete organization of human resources, including PM's complete market survey and analysis results, our focus is placed on the most potential market. Salespeople's active visits and follow-up and positive partnerships that have been developed, along with FAE's professional support and the continuous improvement to our skills, allow us to quickly solve clients' problems.

The collaborative relationship between the Company and its customers begins with product planning, design (design-in), and mass production. The Company provides the correct components, complete reference circuits, and samples, and assists with debugging. The Company's design-in projects has grown from a single digit per month to today's 100-120 design-in projects per month. We learn from our clients and gain experience and grow and thrive together with them. The Company, from basic components to total solutions, provides various solutions to meet different customer needs.

ADI is one of the most well-known and competitive analog semiconductor manufacturers globally. Having merged with Maxim Integrated and Linear Technology, ADI offers a diverse range of products to meet various needs, providing complete high-performance chip solutions and securing long-term market support. In the future, ADI will continue to grow in the industrial instruments, medical devices, automotive industry, home automation fields, wireless communications and will continue to launch innovative products to satisfy the newer and stricter requirements in the future.

Digital audio and video is one of the industries with continuous growth in the world. ADI provides high-performance HDMI 2.1 solutions and ITE provides total HDMI solutions. Moreover, our multiple FAEs/PMs can provide clients with the most efficient and complete solutions.

AMD, as the world's leading manufacturer of digital ICs, FPGAs, and CPLDs, provides the highest-performance FPGAs to make IC design easier and more efficient, while launching a series of low- and medium-priced FPGAs and CPLDs for system providers to simplify system complexity and enhance confidentiality.

ITE's Super I/O, KBC, card readers, PC-TV, HDMI Tx/Rx, power, DVB-T, etc., have made its solutions to PCs more complete and competitive, allowing clients to make one-stop purchases to meet their needs.

Considering the growth of and demand for components in Taiwan's information hardware industry and the development of the electronics manufacturing industry, we, to provide sufficient components and satisfy clients' needs, enhance our service quality and competitiveness, provide overall service values, and strengthen logistics support and software and hardware support service systems to meet clients' needs for quick order placing, fast delivery, and one-stop purchase service, enabling the Company to continue to grow despite the fierce competition.

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The table below shows the Company's competition analysis results:

Factor	S (Strength)	W (Weakness)	O (Opportunity)	T (Threat)
Product lines represented	1. As for analog, ADI is one of the best-known and competitive semiconductor manufacturers in the world. Its different series of products meet different needs, and it provides total high-performance chip solutions, so it has gained strong support from the market. 2. In the digital aspect, AMD is the brand with the largest market share of FPGA in the world. It continues to launch new processes to meet the needs for highly integrated applications with low power consumption. 3. Today, it has become the Macnica Group, so it has many opportunities to extend new product lines. 4. Digital audio and video is one of the industries with continuous growth in the world in the future. ADI provides high-performance HDMI 2.1 solutions and ITE provides total HDMI and DVB-T solutions. 5. Moreover, Valens, and Parade provide different applications and enhance the integrity of the product lines.	When the product lines increase, the management has become more complicated, and it is necessary to recruit and train more personnel to represent different product lines.	The Company has extensive experience in analog and a solid foundation, with a large client base and the ability to assist clients with design. We have been recognized with a number of the best agent awards, the best sales awards, and the best FAE awards. The diverse product lines represented, including AMD, Valens, and Parade enhance the integrity of the Company's product lines and allow us to provide complete services in the analog or digital fields.	1. A good semiconductor manufacturer also needs a number of agents to assist with its sales, and the competition between agents for agency is inevitable. 2. There has been a trend of mergers and acquisitions around the world recently, and the mergers and acquisitions of IC manufacturers have increased the chance of changes in the product lines represented.
Products	1. The wide range of products cover the industries below: (1) Industrial products: Industrial surveillance, automatic test systems, wireless applications, micro-mechanical products, and medical devices. (2) Consumer products: Digital flat-panel displays and digital signal processing. (3) Network communication: RF and IoT are the fields in which the Company is involved. 2. In the future, ADI will continue to grow and launch innovative products to cope.	At present, there is a trend that "big players will always be big" in the domestic IC agency industry, along with a trend of mergers and acquisitions and representing complete product lines. Thus, it is necessary to think about how to distinguish the Company from our competitors and develop a unique position in the market.	Large companies' products are complex and highly repetitive with the boundaries blurred, and they cannot manage them well. Most of their focus is placed on the major product lines. Original manufacturers providing solutions only focus on sales with rare interaction with R&D personnel, to they may be replaced easily.	The agency business is not a monopoly business, and the products represented are not unique on the market, so the agents compete with each other with lower prices. There is also competition among homogeneous semiconductor manufacturers.
Clients	1. The Company, building on the foundation for analogy, has been deeply involved in industrial and instrumentation (I&I) applications for nearly 20 years and has worked with about a total of 1,500 clients of different scales, while having developed long-term partnerships on the basis of mutual trust and positive interaction. 2. The interaction between the Company and clients enables clients to participate in the process from product planning, design-in to mass production so that they can provide correct components, complete circuits, and samples and assist with debugging. 3. The Company has advanced from single-digit design-in projects per month to today's 100-120 design-in projects per month. We learn from our clients and gain experience and grow and thrive together with them.	There are fewer super-large clients. Clients are complex and diverse and located around the world, so it requires more manpower and time to manage the clients.	1. Most of the clients in the agency business are OEMs, which feature large sales volumes and low profits, so the competition is fierce, and they are easily replaced by others. 2. The Company's personnel are highly mobile, provide great services and comprehensive technical support services. 3. Long-term positive partnerships with clients are irreplaceable.	I&I is a stably growing industry, with smaller sales volume but good profits, strict requirements for the quality of components, and less focus on prices. The low price competition among competitors in the same industry and homogeneous semiconductor manufacturers is one of the main unfavorable factors.
Human resources	1. The Company is a very young, healthy, and energetic business. The middle managers are all aged 35 to 45, highly motivated, proactive, positive, perseverant, and determined to get jobs done. 2. At present, the Company has entered the ranks of the publicly listed companies. In the future, with a better reputation, it will be easier for us to recruit more talents. After providing them with complete	We need more management talents and need to accelerate the training of middle and top-level managers to keep pace with the rapid future growth.	1. The disadvantages of a large company are slow response, less interaction among employees, less teamwork, and frequent disagreement. 2. With the substantial performance growth, we have recruited more and better talents, and	1. Everyone wants to poach excellent employees. How to reduce the turnover of employees and train them is an important issue. 2. After being

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education and training, the Company will continue to expand and stride forward.

employees have great opportunities for promotion and continue to be inspired, take training courses, learn from each other, and share their experience with each other to pass it on to new employees.
3. Employees have sufficient room for growth, so we have stable human resources, thereby accumulating our manpower, clients, experience, and various resources.

publicly listed, our organization with a certain scale is faced with new challenges of drawing up and implementing employee training management approaches and policy.

(III) Overview of technologies and R&D

The R&D expenses spent in the most recent year and technologies or products successfully developed as of the publication date of this annual report:

R&D expenses spent

he R&D expenses calculated by the Company for the year ended December 31, 2025 and the period from January 1, 2026 to March 31, 2026 were NT$54,269 thousand and NT$ 18,052 thousand, respectively.

Technologies or products successfully developed

The R&D projects currently planned are shown in the table below:

No.	Project	Content	Remarks	Completion year
1	4K image sensor capture card	Using ON Semi 4K sensor and AMD FPGA	Completed	2025
2	Industrial control application HDMI bidirectional control transmission technology	Support lossless video transmission with ADI GMSL and integrate bidirectional digital audio	Completed	2025
3	Digital lossless auto-detection audio cascading module	Using ADI A2B and ADI Audio DSP enables lossless transmission, and a custom protocol allows for “plug and play” functionality.	Completed	2025

In the era of AI-led trends, Macnica Anstek has successfully completed two projects: "4K image sensor capture card" and "industrial control application HDMI bidirectional control transmission technology," and it has proposed a future plan for a "digital lossless auto-detection audio cascading module." These achievements demonstrate the Company's solid technological foundation in high-resolution image processing, industrial control transmission technology, and digital audio integration, and have laid a solid foundation for future strategic development.

First, an efficient image capturing and processing platform has been established through the pairing of ON Semi's 4K sensor and AMD FPGA. This technology is not only applicable to industrial inspection, intelligent transportation, and medical imaging but also extends to the emerging AI visual recognition market. The future strategy will focus on integrating AI algorithms to build complete "smart imaging solutions" and increase product added value.

In addition, in the field of industrial control applications, the Company has completed HDMI bidirectional control transmission technology and successfully integrated ADI GMSL with bidirectional digital audio. This technology removes the restrictions of traditional one-

way transmission and can provide stable, lossless video and audio interactions in the fields of industrial automation, in-vehicle systems, and remote control. Strategically, the Company will continue to deepen this technology and promote standardized modular design to enhance cross-industry integration capabilities, and further expand the smart manufacturing and automotive electronics markets.

In addition, for the proposal for the "digital lossless auto-detection audio cascading module," the Company plans to use ADI A2B and Audio DSP as the core, combined with a custom protocol, to achieve highly flexible plug and play audio cascading. This technology has been widely applied to smart conference systems, in-vehicle entertainment systems, and professional audio equipment. The future strategy will be based on this foundation to establish a complete audio ecosystem, which will complement image technology to form a product line of "audio-visual integration" and enhance market competitiveness.

In sum, the Company's development strategy will center around three major technical pillars: "high-resolution images," "lossless audio," and "smart industrial control," and will gradually establish complete smart audio-visual solutions through cross-sectoral integration, standardized modular design, and AI empowerment. This strategy not only strengthens our position in the existing market but also expands into emerging application fields to ensure that the Company continues to lead in the future of digitization.

(IV) Long-term and short-term business development plans

Short-term business development plan

(1) Expansion of the comprehensive product lines of semiconductors and electronic components represented

We are a distribution agent for: Analog Devices Inc., AMD, ITE, Finisar, Mini-Circuits, Valens, Onsemi, SiMa AI, Bourns, Asmedia, and EmBestor, etc.. The Company continues to steadily expand its agency and distribution of new products. In addition to developing new applications of the existing product lines represented, we pay attention to industry trends at all times, keep abreast of the market information and development trends, to diversify the products represented and provide complete professional solution design and customization services.

(2) Active promotion of products and development of new clients to expand the client base and the Company's business scale

We regularly offer business training courses on new products and new applications to product marketing and technical personnel, keep salespeople of fully informed of the latest information, and identify the correct market direction, opportunities, and potential clients. We will learn more about the existing clients' organizations to increase the chance of successful marketing of new products. Also, we will proactively develop new client groups and expand the Company's business scale.

(3) Enhanced application of technology, increase of technical personnel to assist clients with new product development to seize market share

We will recruit more professional and technical personnel and proactively increase the added value and improve the services of the products we represent, while improving the quality of professional application engineers. In addition to supporting salespeople in the promotion of new products, we proactively assist clients in understanding the features and applications of the products we represent, and solve clients' design problems in real time, thereby shortening their R&D time and time to market to seize market share.

(4) Training of top-level and middle managers and core personnel to enhance the Company's competitiveness in all aspects

We regularly offer various professional training courses at the Company to our top-level and middle managers and core personnel, including professional knowledge, leadership, and language skills, and encourage top-level managers to take on-the-job

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EMBA courses to improve the Company's business performance and foundation, thereby enhancing the Company's competitiveness in all aspects

2. Long-term business development plan

(1) Expansion of marketing sites and strengthened development in the central and southern Taiwan markets, to become an internationally renowned professional agent

We will expand our business in geographical terms and expand the client based and sales sites. We will adopt professional technologies to shorten the new product or client development time, build a reputation with diversified services, and further enhance the Company's business performance and competitiveness, to become an internationally renowned professional agent.

(2) Increase of personnel in the technical application engineering department and integration of comprehensive product lines represented to increase product sales

We plan to increase the number of personnel in the technology application engineering department, integrate the product lines we represent, and develop diverse products in alignment with market trends, such as machine learning and AI, 5G-related applications, IoT, smart factory sensor application, automotive, cloud, network communications, consumer electronics, and industrial computer, thereby increasing our added values, competitive advantages, as well as product sales and market share.

(3) Active collaboration with enterprises and formation of alliances to leverage the effect of symbiosis and share prosperity

We engage in strategic collaboration or collaboration through stages with world-renowned manufacturers. We provide diverse services, such as professional technology and total solutions, to enable clients to develop more competitive products and create a win-win-win situation for the original manufacturers, clients, and the Company.

II. Overview of the market and production and sales

(I) Market analysis

Regions where the Company's main products (services) are sold (provided)

Unit: NT$ thousand; %

Year Region	2024		2025
	Amount	%	Amount	%
Domestic sales	4,120,056	77.86	6,123,081	68.34
Export	1,171,379	22.14	2,836,227	31.66
Total	5,291,435	100.00	8,959,308	100.00

Main competitors and market share

Unit: NT$ thousand; %

Name of company Item		The Company	Promate Electronic Co., Ltd.	Weikeng Industrial Co., Ltd.
2024	Operating revenue	5,291,435	37,986,078	89,674,523
	Market share	0.15	1.11	2.62
2025	Operating revenue	8,959,308	29,689,806	108,716,379
	Market share	0.20	0.68	2.48

Sources: Data published on the MOPS and by the Taiwan Semiconductor Industry Association; Industrial Economics & Knowledge Center, Industrial Technology Research Institute, between 2024 and 2025.
Note: Market share = Revenue of each company / Output value of Taiwan's IC manufacturing industry; the output value of Taiwan's IC manufacturing industry between 2024 and 2025 was about NT$3,419,500,000 thousand and NT$4,386,900,000 thousand, respectively.

Future market supply and demand and growth potential

(1) Future market supply and demand

① Supply

A SEMI report stated that the semiconductor industry will have eighteen new wafer fab construction projects in 2025, including three 8-inch and fifteen 12-inch wafer fabs. Most of the plants are expected to start mass production between 2026 and 2027 to satisfy the continuously evolving global industrial demand, promote the advanced logic and memory fields, and continue to support the development of mainstream processes such as automotive, IoT, and power electronics. It is expected that the growth rate will be 6.6% in 2025. The expansion of production capacity will mainly benefit from the continued improvement of high-performance computing (HPC) and the generative AI application in edge devices.

In terms of energy, the latest report by the International Energy Agency (IEA) shows that global electricity demand will grow at a rate of 4% per year by 2027. According to the latest “Electricity 2025” report by IEA, global electricity consumption will increase to 3,500 TWh in the next three years. This growth is mainly due to the following factors:

Increase in demand for industrial power
Increase in the use of air-conditioning equipment
Popularity of electric transportation
Large-scale expansion of the data center

These factors have led to a sharp increase in electricity demand. Among them, 85% of the new power consumption will come from emerging markets and developing countries, which is equivalent to 400 GW, the capacity of power generation equipment in 24-hour operation. The IEA described that the increase in the amount of power consumption is equivalent to the power consumption in Japan per year. It shows that the growth rate of global power consumption is very fast.

According to the analysis of the communication industry by ITRI, the communication industry is experiencing amazing innovation and reform. As 5G technology gradually becomes popular, 6G is also waiting for its turn. New application scenarios are emerging. The combination of low-rank satellite, cloud computing, artificial intelligence, and Internet of Things (IoT) technologies allows the global network communication industry to enter the next era of All Connected, which is faster and omnipresent.

According to the Ericsson Action Trend Report, the application driven by generative AI is thriving. AI technologies are being integrated into various devices, including smartphones, notebooks, watches, and fixed wireless access (FWA) products. It is predicted that the upward and downward traffic will grow significantly, and may affect the volume and characteristics of the mobile data traffic in the future. Driven by the generative AI, cloud migration in the telecommunication industry and corporate digital transition, cloud services have grown significantly. It is estimated that the global communication industry market will reach USD 2.58 trillion in 2024, with a growth rate of 6.9%. In terms of communication equipment, products such as cloud high-speed switching equipment, WLAN, fiber-optic bandwidth networks, and mobile bandwidth equipment are all growing positively. Looking ahead to 2025, the global communication industry will continue to grow by 6.8% to USD 2.76 trillion.

According to the Deputy Director-General of the Metal Center Aerospace Technology Development Division, the cost and threshold of satellite launch have been significantly reduced since the successful development of reusable rockets

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by SpaceX, which has driven the boom of the global aerospace economy. Statistics by the Satellite Industry Association (SIA) shows that the value of the global aerospace economy in 2023 reached NT$ 12.8 trillion, and about 71.3% of the value is contributed by the satellite industry. The launch of the space economy has driven the thriving of related industrial chains. If Taiwan can grasp the opportunities, it is expected to become the next industrial star.

Demand

In 2025 CES, artificial intelligence (AI) has become the biggest highlight, widely used in consumer electronics and smart devices, and promoting technological reforms and market innovation. However, if AI is applied to enterprises, it is inevitable that people will worry about whether AI can be trusted and compliant with ethics. Gartner Research Vice President (Arnold Gao) said, “The key strategic technology trends this year cover the necessary matters and risks of AI, as well as the frontier trends of computing technology and human-machine cooperation. Tracking these trends will help IT leaders to build a future for the corporate institution in innovative ways that are responsible and in line with ethics.”

Therefore, Gartner announced important strategic technology trends in 2025:

Agentic AI achieves the user-defined goals through autonomous planning and action. Achieving the virtual labor that shares and supplements the labor work will bring hope. This motivation has encouraged enterprises and manufacturers to explore, create and build the technology and practice required for stable, safe and credible agentic AI.

AI Governance Platform is a part of the Gartner’s AI trust, risk, and safety management (TRiSM) framework, which is in continuous development. AI TRiSM allows enterprises to manage the legal, ethical, and operational performance of their AI system. This technology solution can create, manage and implement the responsible AI application strategy, explain the work principles of the AI system, and provide transparency to set up a trust and accountability system.

Disinformation security is an emerging technology category. The technology can systematically identify reliability and aims to provide a method system that can ensure information integrity, assess authenticity, prevent impersonation, and track the communication of hazardous information. Gartner predicted that by 2028, 50% of companies will begin adopting products, services, or functions designed to respond to false information security applications, yet the proportion of these products, services, or functions remains less than 5%. The wide availability and advanced status of AI and machine learning tools are used for malicious purposes, and it is expected that the number of false information incidents for enterprises will increase. If such trend is not controlled, the false information may cause significant and long-term damage to the enterprise.

Postquantum Cryptography (PQC) can protect data from the risk of quantum computing decryption. According to the development of quantum computing in the past years, the traditional encryption technologies currently widely used will be eliminated. As it is not easy to change the encryption method, enterprises need more time for preparation to provide strong protection for all sensitive or confidential information.

Ambient Invisible Intelligence is realized with smart tags and sensors at low cost and small size. These sensors can provide large-scale and economical tracking and sensing features. In the long run, the ambient invisible intelligence will allow sensors and smart technologies to be integrated into our daily lives seamlessly. By 2027, the early examples of ambient invisible intelligence will be mainly used to solve current problems, such as retail inventory inspection or perishable goods logistics. The realization of low-cost real-time object tracking and sensing will

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increase visibility and efficiency.

Sustainability is affected in multiple ways in energy-efficient computing. In 2024, carbon footprint will be the first priority of most IT organizations. Computing intensive applications, such as AI training, simulation, optimization, and media rendering, have the highest energy consumption and may become the "major client" of corporate carbon footprint.

Hybrid computing is a computing model. New computing models are continuously emerging, including central processing units, graphic processing units, edge computing, specific application integrated circuits, neural patterns, classic quantum computing, and optical computing models. Hybrid computing combines different computing, storage, and network mechanisms to address computational challenges. This computing format can help enterprises explore and solve problems, and enable AI and other technologies to break through the existing technical limitations. Hybrid computing will be used to create a more efficient and innovative environment.

Spatial computing uses the technology of AR and VR to enhance the physical world in a digital manner. It will also bring the interaction between the physical and virtual experience to a new level. In the next five to seven years, the use of space computing will boost business efficiency through a simplified workflow and enhanced collaboration.

Polyfunctional robots are able to perform multiple tasks, and they are replacing robots designed for repetitively performing a specific task. The function of this new type of robot can improve efficiency and return on investment (ROI). Polyfunctional robots can work with human beings to deploy and expand quickly.

Neurological enhancement uses the technology of reading and decoding brain activity to improve human cognitive ability. This technology can be used to access the human brain through a unidirectional (UBMI) or bidirectional brain machine interface (BBMI). This has huge potential in the three main fields: human skill improvement, next-generation marketing, and performance enhancement. Neurological enhancement will increase humans' cognitive ability, help the brand to understand the idea and feeling of the consumer, and strengthen humans' neural function so that the best results can be achieved.

The growth of the semiconductor equipment market will come from several major sources, including the demand for advanced process technology, the penetration of 5G and AI technology, and expanding demand in emerging markets. First, the demand for advanced process technology (such as 7nm and below process) is the main driver of the growth of semiconductor equipment. With the continuous breakthrough in process technology, the demand for process equipment such as high-end photo etching, etching, and chemical mechanical polishing (CMP) will continue to grow. Particularly, the application of advanced process application will be the key to high-performance computing and mobile device. Next, the wide application of 5G base stations, IoT equipment and AI accelerators will create strong demand for semiconductor equipment. Finally, emerging markets will also become an important source of growth for semiconductor equipment. With increasing investment in advanced manufacturing technologies in these regions, the demand for semiconductor equipment will grow significantly.

The growth of the industrial market will mainly come from several key fields, including the development of automation and digital transformation, green energy technology development, and the restructuring of the global supply chain. With the growing popularity of smart manufacturing and Industry 4.0, the demand for industrial automation will continue to grow. The application of sensors, machine vision, robot technology, and artificial intelligence will enhance production

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efficiency, reduce costs, and promote enterprises to accelerate digital transformation. The development of green energy technology, particularly for renewable energy, electric vehicles and energy storage equipment, will become an important driver of industrial market growth. Faced with a global emphasis on the reduction of carbon emissions, enterprises have increased their investment in sustainable technologies. This not only promotes the growth of the clean energy industry but also drives the demand for infrastructure and equipment.

According to the Ministry of Economic Affairs, since 2020, the domestic economy has accelerated its growth due to significant domestic epidemic prevention, world order shifting, and semiconductor fab expansion, coupled with Taiwanese businessmen's return to Taiwan for investment, which has driven the domestic economy, and stimulated the demand for power consumption. The energy transition policy specified that the target for the capacity of renewable energy installations by 2025 will be 20GW for optoelectronics plants and 5.6GW for offshore power plants. The goal for completing the construction by the end of 2025 has not been changed. The target that 20% of the energy must come from renewable energy sources by 2025 is set based on the economic growth rate of 1% to 2% in 2015 and 2016, and the estimated power generation by 2025 is 2,575 GWh. Meanwhile, the foreign market also faces shortage, such as: Replacement of old transformer: 55% of the equipment exceeds the service life, and the replacement rate is estimated to be 1 million pieces per year. The new demand for electric energy is exploding: The demand for AI servers, data centers, and electric vehicle charging stations is increasing year by year, which is helpful for the next wave of development in the industry.

According to the estimation by the international market research agency, McKinsey & Company, there will be more than 27,000 satellites running on the space track by 2030. 4,000 to 5,000 satellites will be required to maintain the normal operation of the large star system project on average. Most of the commercial satellites currently are small satellites (Small Sats) with a weight of less than 500kg. These satellites are rotating on the "low earth orbit" within 2,000km from Earth. They are equipped with high-speed and low-delay communication performance. However, as they are close to Earth, they need to maintain a higher speed to fight gravity. The average lifespan is only three to five years. The operators need to regularly launch new satellites to maintain the quantity.

For example, the low-orbit satellite leading manufacturers, Starlink and Eutelsat OneWeb, have entered the second stage of low-orbit satellite network construction. The relevant projects of Amazon's Project Kuiper and Canada's Telesat are also in progress. Many international aerospace startups have also actively launched small or cubic satellites to provide various types of satellite services. From 2020 to the end of September 2024, the number of commercial satellites that have been launched and are still in operation around the world is 7,964, with a total of 366 launch activities. From January to the end of September 2024, as of the end of September 2024, the number of commercial satellites that have been launched and are still in operation in the world is 1,712, with 99.4% of them running on low earth orbits. The development of the aerospace industry will definitely drive a massive demand for satellite manufacturing and launch.

In the development of 5G communications, millimeter wave will be the next important milestone. The importance of gallium nitride (GaN) compound semiconductors, which can be used for radiofrequency components in high-frequency communications, is also increasing day by day. Among them, GaN-on-SiC is expected to dominate the terrestrial communications radio frequency GaN components market, which can be applied in 5G base stations, satellite communications, and military radar. In addition, automotive applications will also

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bring high demand and growth for 5G chips, including the Internet of Vehicles-related communication systems, autonomous driving, smart cabin, and other innovative applications, all of which rely on 5G chips to realize. In particular, the second wave of 5G technology innovations (5G Advanced) will bring more business opportunities. These technologies will be the basis of 6G development, and countries are actively seeking to dominate the communication technology standards for 6G through alliances. In the evolution of 6G, in order to compensate for the loss of high-frequency communication signals and to overcome communication dead zones, low-orbit satellites have taken center stage, and it is expected that GaN components will satisfy the demand for low-orbit satellite RF components at this stage.

(2) Future growth of the industry

A large network that connects different groups of people, societies, systems, devices, and business opportunities both online and offline, collects data from different fields, and delivers a better experience through the above two elements after integration.

AI mainly includes the fundamentals of AI, smart apps, and smart analysis. The most important thing in digitalization is digital twin, which is a powerful tool, in which AI, digital analysis, and cloud computing are combined. Cloud and edge computing were integrated, and then the conversational platform emerged. The conversational platform is mainly about human-machine interaction. The close interaction creates an immersive scenario. The last one is mesh, mainly including blockchain, event-driven mode, and information security. Information security can no longer be 100% guaranteed. The bottom line is how to control risks and how to build trust.

In the foreseeable few years, product development will increasingly rely on sensors and information collection. The Company has provided a variety of sensor components and technical support for the IIoT, including front-end sensors for pressure, temperature/humidity, various gas sensors, water levels, altimeter, and suspended particle concentration, as the touch of objects through the high-precision analog-digital converter with ultra-low power consumption and the wired and wireless communication components commonly used in the industry. The back-end big data servo system, high-speed storage hardware, optical fiber network modules, and network bridge have formed a brain center; then, FPGA carries out AI calculations and judgments for crisis warning and response.

Through the layouts of different types of products, we will continue to further our development in the industrial market and jointly develop products with clients to shorten the time to market. For example, we will link multiple parties' expertise to jointly create an AI diagnostic solution for unmanned devices. We will enhance our familiarity with the energy storage industry supply chain to provide clients with fast and integrated solutions. We will also work with more third-party solution providers and assist FPGA clients in developing AI, RF, ATE, low-earth orbit satellites, as well as digital audio-visual broadcasting. This facilitates our growth with clients and enhances mutual competitiveness, while contributing to the development of Taiwan's industries.

As IoT applications are more widely adopted, information security threats have extended from information equipment to infrastructure and industrial control equipment. More effective protection measures are required for embedded systems to prevent malicious attacks. Thus, ADI's DeepCover security microcontroller will lead to a new wave of evolution and industrial development for IoT devices.

As 5G technology and low-earth orbit satellite ground stations begin to be commercially deployed, the resulting surge in bandwidth will greatly transform the existing models and open up new markets. The 5G network will not be limited to the internet and will facilitate the revolutionary development of the automotive, medical, and industrial automation fields, thereby creating greater values for the industries through the intelligent applications business opportunities. Macnica Anstek has a

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checkerboard of product features, ranging horizontally from ADI RF high-speed signal chain products and AMD/Xilinx FPGA for massive data transmission to vertical Mini Circuit in RF signal conditioning, helping customers complete highly integrated designs and bring competitive advantages to products.

Competitive advantages, favorable and unfavorable factors of development prospects, and countermeasures

(1) Competitive advantages and development prospects

① Professional management team

The Company is young, motivated, and creative and can respond to the rapid changes in the semiconductor industry. At least 90% of our employees have a bachelor's degree, and the human resources quality surpasses our competitors in the same industry; meanwhile, each of our employees focuses on their respective jobs to strive to provide the best services to clients. To create a better work environment for employees and attract outstanding professionals to join our team, we provide employees with space for self-growth and opportunities for creation and learning, while proactively training talents and regularly offering employee education and training and overseas professional training. With our endeavors, the entire team has reached a consensus and established a harmonious organizational culture. We strive hard to achieve business goals, create significant growth, and lay a solid foundation for further development.

② Technical marketing

We directly interact with clients on the front line through professional salespeople, so we are highly sensitive to the market conditions and able to accurately judge the future industry trends and technically able to integrate products. Thus, different business departments are responsible for the parts and components for different uses; product planning and technical personnel provide comprehensive services, such as design, product integration, and client problem solving. We also work with suppliers to formulate marketing plans of new products. Such technical support has become part of the Company's competitive advantages.

③ Wide customer base and leading advantage in agent products

The company has accumulated a large customer base through years of in-depth cultivation in various industries and covers a variety of market applications such as semiconductor automation, high-frequency communication technology, industrial computer control, aerospace and defense, automotive, new energy, and AI fields.

Meanwhile, in response to the market demand trend, the expansion of various product lines and the consolidation of resources, the demand for the industry continues to heat up. The complementary nature of each agent products also brings more opportunities, with products under leading brands, presenting the advantage of mutual benefit to provide customers with more comprehensive and competitive solutions.

(2) Favorable factors

① Competitiveness of the brands represented and distributed

We are an agent for: Analog Devices Inc., AMD, ITE, Mini-Circuits, Parade, Sima.ai, Bourns, Valens, Asmedia, EmBestor, and INPAQ. These brands are leading players in their respective markets; therefore, the Company is able to maintain stable growth in performance and profitability and provide sufficient resources for continuous development of new products, so as to consolidate its leadership position and competitive advantage.

② A comprehensive component supplier

The Company engages in a wide variety of fields, including system components,

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sub-parts and modules, with such supplier diversity, which has become a major trend in market demand. It is expected to drive demand for ICs related to industrial control, aerospace, automotive, medical, consumer electronics, network communications, new energy, etc., and at the same time effectively resist the impact of a single industry's business cycle and maintain a certain level of performance and profitability.

③ Marketing-driven technology and adoption of technology to strengthen marketing strategies

We keep abreast of the market trend and clients' needs through our professional marketing personnel; our professional technical personnel to assist clients in developing and planning new product solutions, to enhance their competitiveness and motivate them to continue to place orders, thereby increasing the momentum of the Company's performance growth.

④ Application solution design

With the market trend and clients' needs as the basis, we provide standard application design and assist clients in quickly completing product design to reinforce their competitiveness and help them obtain technical certification in Europe, the Americas, and Asia, and increase their business. As a result, we can represent their new product lines rapidly and increase the new products we represent as the new momentum of the Company's performance growth.

⑤ Electronic information industry based in Taiwan ranks first in the world in many aspects

Taiwan's strong electronic information industry continues to create and innovate to rank first in the world, including industrial control equipment, tablets, multimedia audio-visual systems, industrial machinery and equipment, personal storage systems, and cloud management systems, etc., which will become Taiwan's future important industries. Therefore, the electronics industry based in Taiwan will continue to boom, so establishing a strong distribution channel in Taiwan will continue to be the most powerful weapon.

⑥ Continuous expansion of marketing service sites

In response to the changes in the global market, with the strategy of shifting production bases to central and southern Taiwan, mainland China, and other Asia-Pacific regions, the Company also continues to expand the service locations in South Central Taiwan, and through the Group's resources, it can effectively serve China, Thailand, and even the Asia-Pacific regions, achieving a wide range of distribution service locations.

(3) Unfavorable factors and countermeasures

① Many competitors for new brands to represent

The Company has been cooperating with domestic IC design companies in the early stage and searching for potential products from them. Through the group's resources, it can more effectively obtain the leading position in the market, gain priority from obtaining partnerships and agency rights, and set up a marketing team to search for advantageous products and application solutions for exhibitions all over the world. We believe that with our strong technological backgrounds and R&D capabilities, along with our marketing team's business expansion abilities, we will be more competitive against other competitors.

② Low-price competitions among semiconductor distributors

We strengthen marketing and technical support capabilities to shorten the price inquiry and order processing process, improve our business competitiveness and customer service attitude, and develop a higher-quality client base, while forming strategic alliances with suppliers with an emphasis on the added values and brands,

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avoiding the highly competitive memory IC (SDRAM and Flash) markets, adopting innovations, and reinforcing our advantages of the long-tail and positive client partnerships, thereby creating new business opportunities and maintaining stable performance and profit.

(II) Important functions and production processes of main products

Important functions

Brand	Main product	Important functions
ADI	Analog and mixed-signal ICs	Instruments, meters, thermometers, industrial control systems, industrial computers, automated test systems for semiconductors and TFT panels, factory automation systems, unmanned vehicles, collaborative robots, wireless and microwave communication products, satellite payloads, software-defined communication modules, optical communication modules, communication base station equipment, etc., micro-mechanical products, environmental monitoring, security monitoring, tire pressure monitors, automotive anti-theft systems, medical instruments and equipment: blood pressure monitors, pulse oximeters, electrocardiogram machines, in-vehicle entertainment systems, battery and energy management, etc.
AMD AECG	FPGA accelerator card/multiprocessor system on a chip/programmable gate array/programmable logic device (Versal/Alveo/RFSoC/MPSoC/FPGA)	FPGA can be used for streamline design and algorithm hardware acceleration of all digital circuits with FPGA. 1. IC design companies adopt FPGA/Versal to verify algorithms before production, lowering the wafer, mask, and IC design costs and the risk of design errors. 2. FPGA are adopted to increase product flexibility, functionality, differentiation, and uniqueness. 3. Clients plan a complete system-level IC solution to MPSoC/Versal and directly mass-produce it, thereby reducing their product R&D costs. 4. With the need to install an FPGA accelerator card on a server platform, the data processing bandwidth reaches one gigabit per second, the latency is lower than that of a GPU, and the data search performance is significantly better than a CPU system. 5. RFSoC has high integration, low energy consumption, and a built-in high-speed 14-bit analog-to-digital converter (ADC, up to 5GS/S) and digital-to-analog converter (DAC, up to 10GS/S) for direct RF sampling. Each chip supports up to 16T/16R channels and covers all frequency bands below sub-6 GHz. The new generation of Versal RF supports the 28 GHz satellite communication KA band frequency band.
Israel supplier Valens	HDBaseT products	Valens has realized 4k60 resolution uncompressed video and audio transmission. The company's products can transmit five types of signals (5 Play): image, sound, network, control signal, and power to a distance of up to 100 meters through a CAT-5 network cable. Most commonly used in home audio-visual entertainment systems, video conferencing systems, mid-to-high-end projection equipment, etc.
ITE	Image conversion products such as DP/HDMI/VBO/MIPI/LVDS and TTL, HDMI Matrix/Splitter/Switch and Re-timer, Capture SoC and Type-C.	They can be applied to various A/V devices, such as KVM, Docking, Dongle, Video Extender and Capture Card, and many other audio/video products. Including automotive, industrial control, enterprise and consumer markets.
U.S. Company II-VI (Finisar)	Optical fiber transceivers, optical engines, optical cables, optical devices, optical instruments, optical amplifiers, and RF over fiber modules.	It has a wide variety of product mixes for data centers, enterprise networks, and access networks; optical interconnect and infrared light applications used in the measurement, sensing, and control in our daily lives; and industrial applications.
Mini-Circuits	Low Temperature Co-fired Ceramic (LTCC) components, Monolithic Microwave Integrated	LTE/4G/5G wireless communication systems, cable TV/broadband system equipment and terminals, satellite
	and Microcircuits.	thermometers, micro-microwaves, and microcircuits.
Solaris	Solaris	Solaris is a 100% power source for the 2010s, 2011, and 2012 years. It has a 100% power source for the 2013, 2014, and 2015 years. It has a 100% power source for the 2016, 2017, and 2018 years. It has a 100% power source for the 2019, 2020, and 2021 years.

Production process: The Company is an agent and distributor of electronic components, so it is not applicable.

(III) Supply of main raw materials: The Company is an agent and distributor of electronic components, so it is not applicable.

(IV) The names of clients/suppliers with purchases (sales) accounting for at least 10% of the total in any of the last two years, the amount and percentage of the purchases (sales), and reason for increase/decrease

Information on major suppliers in the most recent two years

Unit: NT$ thousand; %

Item	2024				2025
	Name	Amount	Percentage of the net purchase of the year (%)	Relationship	Name	Amount	Percentage of the net purchase of the year (%)	Relationship
1	ADI	2,782,800	74.85	None	ADI	8,088,314	77.98	None
2	Qorvo	499,158	13.43	None	AMD	750,203	7.23	None
	Others	435,907	11.72	—	Others	1,534,424	14.79	—
	Net purchase	3,717,865	100.00		Net purchase	10,372,941	100.00

The Company maintains good, long-term relationships with its major suppliers, ensuring a stable supply chain. Changes in the number of major suppliers was mainly due to revenue growth in 2025, resulting in an increase in purchases from major suppliers in 2025 compared to 2024.

Information about the main clients in the most recent two years.

Unit: NT$ thousand; %

Item	2024				2025
	Name	Amount	Percentage of the net purchase of the year (%)	Relationship	Name	Amount	Percentage of the net purchase of the year (%)	Relationship
1	Chroma ATE	728,943	13.78	None	DELTA (THAILAND)	928,115	10.36	None
2	Others	4,562,492	86.22	—	Others	8,031,193	89.64	—
	Net purchase	5,291,435	100.00		Net purchase	8,959,308	100.00

The change in the number of sales customers was mainly due to the growing adoption of AI server applications, which boosted end demand and, consequently, increased demand for the Company's agency products.

III. The number, average length of service, average age, and distribution of education attainment of in-service employees during the most recent two years and up to the publication date of this annual report

April 21, 2026

Year		2024	2025	2026 and as of April 21 (Note)
Number of employees	Managers	64	72	72
	Employees	87	102	103
	Total	151	174	175
Average age		40.59	40.53	40.53
Average length of service		10.37	9.41	9.41
Distribution of education attainment	Doctoral degree	—	—	—
	Master's degree	15.23	10.37	10.59
	College/University	83.44	85.37	85.29
	Senior high school	1.33	4.26	4.12
	Below senior high school	—	—	—

Note: The data up to the year, in which this annual report is published, shall be entered.

IV. Disbursements for environmental protection

The Company is an IC distributor specializing in the sale and R&D of electronic components. As we are not a manufacturer, no environmental pollution is produced. The Company regularly disinfects its facilities to maintain a hygienic work environment and has a central air conditioning system to regulate indoor temperature and humidity. Moreover, the Company also regularly maintains the air conditioning equipment to ensure fresh air quality, striving to create and provide a safe work environment for its employees.

(I) Any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to environmental pollution incidents (including any compensation paid and any violations of environmental protection laws or regulations found in environmental inspection, specifying the disposition dates, disposition reference numbers, the articles of law

violated, and the content of the dispositions), and disclosing an estimate of possible expenses that could be incurred currently and in the future and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided: The Company is a distributor of electronic components and there is no risk of industrial pollution, so it is not applicable.

(II) Measures to be taken: None.
(III) Estimate of possible expenses: None.

V. Labor-management relations

(I) The Company’s various employee benefit measures, continuing education, training, pension system, and implementation thereof, as well as labor-management agreements and various employee rights protection measures:

Employees are our most precious assets and foundation for competitiveness. Therefore, we continue to invest in training and education and improve employees’ quality and professional skills, while providing obstacle-free promotion channels and employee share subscription and dividends.

We abide by applicable labor laws and regulations, protect employees’ reasonable rights and interest, provide them with a safe and healthy work environment, and have set up a complaint channel to achieve a win-win situation for labor and management.

Employee benefit measures

(1) Leisure and entertainment:

Recreational activities: To enhance the morale and teamwork among the Company’s employees, we hold birthday parties per quarter and warm and festive activities (dinner parties, lucky draws, and gift exchange) on Halloween, Thanksgiving, Christmas, and New Year’s Eve.
Club activities: The Employee Welfare Committee proactively facilitate the establishment of clubs. At present, there are five major clubs: Lohas Club, Yoga Club, Badminton Club, Wine Aerobic Club, and Gourmet Club, to balance employees’ mind and body through diverse club activities.
Employee travel: We hold employee travel per year to bond through inter-departmental interaction.

(2) Subsidies:

We provide bonuses and gifts on three major holidays, birthday cash gifts, childbirth subsidy, wedding and funeral allowances, employee training subsidy, injury and emergency assistance, departmental gathering subsidy, and designated store discounts, while paying out mid-year and year-end bonuses depending on the operating performance and holding year-end party and lucky draw activities.

(3) Friendly childcare environment:

We value privacy and safety, and have built a breastfeeding-friendly environment. In addition to offering family care leave and parental leave, we have on-site breastfeeding rooms and refrigerators for storing breast milk.

If employees’ children are enrolled in preschools in the factory area, the Company also provide appropriate childcare facilities.

(4) Health consultations:

A medical health management center is contracted annually to conduct health checks for company employees. Occupational health nurses are also scheduled to provide on-site healthcare and consultation twice a month, consistently monitoring and caring for the health of colleagues.

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(5) Social charity events:

The Company hold a social charity event to raise in-kind donations to spread love in Christmas at the end of each year.

In 2025, donations were given to the food bank program of the Andrew Charity Association, raising approximately NT$180,000 worth of daily necessities: 2,280 bottles of high-calcium milk, 715 packs of noodles, 566 packs of white rice, 555 cans of meat sauce, and 276 packs of Quaker Oats.

Employee training and implementation

To ensure effective employee development, we train talents through education and training, along with a systematic job rotation mechanism, and motivate employees to learn independently to improve their personal performance and increase their work skills. The relevant training courses offered are as follows:

(1) New employee training: It assists new employees in familiarizing themselves with the Company's development history and business philosophy, corporate culture, work environment, general affairs services, employee benefits, human resources rules, and information security.
(2) Professional training: It increases employees' skills and professional knowledge required by each unit through training held internally and externally and on-the-job learning.
(3) General education courses: They include company-wide or general education and training courses, such as quality training courses.
(4) Employee training courses offered during this year

Item	Total number of trainees	Total number of hours	Total cost
New employee training/ General education	35	1,774	–
Professional training/ General education	88	1,312	133,289

Pension system and implementation

The Company's pension system is in compliance with the Labor Standards Act and the Labor Pension Act, which are specified below:

(1) Labor Standards Act (old scheme: a defined benefit plan)

As for the employees, to which the pension scheme under the Labor Standards Act applies, their pensions are calculated based on their length of service and the average salary for the six months prior to the approved retirement date.

The Company makes a monthly contribution equal to $2\%$ of the total monthly salaries of employees, to which the pension scheme under the Labor Standards Act applies, to the retirement reserve fund in a special account with Bank of Taiwan. If the estimated balance of the retirement reserve fund account is insufficient for the payment of pensions to employees who are expected to meet the retirement criteria in the following year, the Company will make a contribution to make up for the difference before the end of March of the following year.

The above $2\%$ monthly contribution to the retirement reserve fund is deposited into a special account with Bank of Taiwan in the name of the Supervisory Committee of Labor Retirement Reserve and is managed by the Bureau of Labor Funds, Ministry of Labor. The Company has no right to influence its investment management strategy.

(2) Labor Pension Act (new scheme: a defined contribution plan)

The Company makes monthly contributions, equal to 6% of the total monthly salaries of employees, to which the pension scheme under the Labor Pension Act, to their pension accounts with the Bureau of Labor Insurance with reference to the Table of Grades of Labor Insurance Salary.

4. Labor-management agreement

Our labor-management relations are harmonious, and no labor-management disputes have occurred. Also, we attach great importance to the bilateral communication between labor and management to maintain positive labor-management relations. Thus, no serious labor-management disputes have occurred so far.

(II) Any losses incurred due to labor disputes in the most recent year and up to the publication date of this annual report, potential losses, and countermeasures

We attach great importance to employee remuneration, employee training, and employee feedback, and maintain an obstacle-free channel for complaints. Thus, no serious labor-management disputes have occurred that would impact the Company’s normal operations during the most recent year and up to the publication date of this annual report.

VI. Cyber security management

(I) Cyber security risk management framework, policy, specific management plans, and resources put in cyber security management

1. Cyber security risk management framework

The Information Department is independent of the user units and is responsible for coordinating and implementing information security policies, disseminating information security information, enhancing employees’ awareness of information security, and collecting and improving the technologies, products, or procedures for the organization’s information security management system performance and effectiveness. The internal control system, the information security management regulations, Business Continuity Management (BCM) 25999-2:2007 (international risk management certification), ISO 9001 Quality Management System, and the Information Department, among other information security management mechanisms, are audited by CPAs per year; information security is also audited and adjusted, with the aim of assessing the effectiveness of the internal control of the Company’s information operations.

2. Cyber security policy

To conduct information security management, we have formulated various information security management regulations, to achieve the following policy goals through all employees’ collective efforts:

(1) Ensuring the confidentiality and integrity of information assets.

(2) Ensuring that data access is regulated depending on departmental functions.

(3) Ensuring the continuity of the information systems.

(4) Preventing unauthorized modification or use of data and systems.

(5) Regularly performing audits of various information security regulations to ensure the proper implementation of information security.

3. Specific management plans

(1) Regularly taking an inventory of information assets and personal data, conducting risk management based on information security risk assessment results, and taking various control measures.

(2) Offering information security and personal data protection education and training and raising employees’ awareness per year, and requiring all new employees to sign an information security and non-disclosure agreement.

(3) Requiring outsourced partners to sign a non-disclosure agreement to ensure that those

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who use the Company's information services or conduct information tasks have the responsibility and obligation to protect the Company's information assets they obtain or use, thereby preventing them from unauthorized access to, tampering with, destroying, or improperly disclosing such data.

(4) Having established appropriately backup, redundancy, or monitoring mechanisms for important information systems or equipment; and regularly holding exercises to maintain the availability thereof.

(5) Equipping all personal computers with anti-virus software, regularly confirming the update of the virus patterns, and prohibiting the use of unlicensed software.

(6) Requiring colleagues to properly keep and use their account ID, passwords, and access permission, regularly update passwords, and adopt the one-time password (OTP) mechanism to authenticate accounts with multi-factors, to reduce the risk of password leaks.

(7) Having established a standard procedure for responding and reporting information security incidents and putting the information security emergency response team to be in charge of handling information security incidents, to properly respond to information security incidents in real time and curb damage in the first place.

(8) Establishing a business continuity management mechanism and regularly holding testing exercises to maintain its applicability.

(9) Regularly performing internal audits per year to ensure the effectiveness of information security and personal data protection management systems.

Resources put in cyber security management

(1) Internet information security management and control

① Introduce the ISO 27001 information security management system

To achieve its information security policy and goals and establish comprehensive information security protection, the Company introduced the ISO 27001 Information Security Management System (ISMS) in 2025. It has since strengthened information security and risk management to reduce operational risks.

The Company expects to obtain ISO 27001 certification in 2026.

② Increase of information security facilities

A. Hardware devices

Cybersecurity protection equipment - Next-Generation Firewall (abbreviated as NGFW):

In addition to packet filtering, it also includes UTM services such as anti-virus, content filtering, IDS/IPS and logging, enabling more granular and reliable traffic analysis and identification, prevention and reporting of a wider range of network attacks, and providing greater security against threats such as viruses, malware or hacking.

B. Software

a. Endpoint detection and response (EDR): It is to discover an attacker in the organization's environment and quickly fix it by using real-time visibility, forensic, and response tools.

b. OTP: Two-factor authentication, with the continuous update of OTP, effectively solves the problem of account or password thefts and ensures the security of online transactions and an organization's internal network.

③ Regularly scanning computer systems and data storage media for viruses.

④ Implementing various network services in accordance with the information security policy.

⑤ Regularly reviewing the system logs of various network services to follow up on

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anomalies.

(2) Data access control

① Having personnel manage computer equipment and setting their account ID and password.
② Providing different access permissions depending on job responsibilities and departments.
③ Canceling the access permissions for the personnel who are transferred in time.
④ Deleting or overwriting confidential, sensitive data, and copyright software before scrapping equipment.

(3) Contingency recovery mechanism: Establishing a system backup mechanism and implementing remote backup

① Holding system recovery exercises every six months.
② Regularly examining emergency response plans and reviewing computer network security control measures.

(4) Awareness-raising events and inspection to enhance employees' awareness of information security

① Sending emails on the latest relevant information security and response information from time to time.
② Email social engineering drills and training for employees twice a year.
③ Implementing reward and punishment measures.

(II) Any losses incurred due to major cyber security incidents, potential impacts, and countermeasures in the most recent year and up to the publication date of this annual report. If the amount cannot be reasonably estimated, please specify the fact that it cannot be reasonably estimated

We continue to implement the information security management policy and regularly hold recovery plan exercises. In recent years, as we have become a member of a Japanese group, the Japanese parent company adopted endpoint protection, replaced anti-virus software, and implemented email security according to the group's stringent security policy, to enhance and reinforce the Company's important operating systems and data security, while increasing our colleagues' awareness of information security to ensure the sustainable corporate development.

VII. Important contracts

Type of contract	Parties involved	Start and end dates	Main content	Restrictive covenants
Agency	Analog Device Inc. (ADI)	2003.03 - Ongoing	Sales of IC products, A/D, D/A, OP, converters, DSP, solutions, and products	Restrictions on regions
Agency	Xilinx, Inc.	2010.01 - Ongoing	Sales of IC products and technical support	Restrictions on regions
Agency	Parade Technologies Ltd.,	2012.02 - Ongoing	USB, DP, Thunder bolt	None
Agency	Valens Semiconductors Ltd.	2013.08 - Ongoing	HDBaseT	None
Agency	Asmedia Technology Inc.	2015.11.01 - Ongoing	USB3.0 host, USB3.0 device, Swith, Sata controller series	Region for agency: Taiwan and China
Agency	Sensor to Image GmbH	2020.02 - Ongoing	IP Core products	Region for agency: Taiwan
Agency	Mini-Circuits	2023.06 - Ongoing	RF & MW products: MMIC, LTCC, Non-LTCC, Test Solution	Region for agency: Taiwan

Five. Review and Analysis of the Financial Position and Performance and Risk Management

I. Financial position

Unit: Thousands of NTD

Item	2025	2024	Difference
			Amount	%
Current assets	8,999,049	6,558,711	2,440,338	37.21
Intangible assets	1,537	2,233	(696)	(31.17)
Property, plant and equipment	28,845	29,237	(392)	(1.34)
Other assets	141,242	149,371	(8,129)	(5.44)
Total assets	9,170,673	6,739,552	2,431,121	36.07
Current liabilities	7,207,011	4,745,277	2,461,734	51.88
Non-current liabilities	33,804	25,890	7,914	30.57
Total liabilities	7,240,815	4,771,167	2,469,648	51.76
Share capital	666,392	666,392	0	0.00
Capital Surplus	301,767	301,763	4	0.00
Retained Earnings	906,336	953,065	(46,729)	(4.90)
Other equity	55,363	47,165	8,198	17.38
Total equity	1,929,858	1,968,385	(38,527)	(1.96)
Description of change analysis: (1) The increase in current assets was due to the increase in inventories. (2) The increase in current liabilities was due to the increase in accounts payable.

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II. Financial performance

Unit: NT$ thousand; %

Item	2025	2024	Increase (decrease)	Percentage increase / decrease
Total revenue	8,977,234	5,321,743	3,655,491	68.69
Less: Sales returns and allowances	17,926	30,308	(12,382)	(40.85)
Net revenue	8,959,308	5,291,435	3,667,873	69.32
Total operating costs	7,960,487	4,604,875	3,355,612	72.87
Operating gross profit	998,821	686,560	312,261	45.48
Operating expenses	385,587	358,178	27,409	7.65
Operating income	613,234	328,382	284,852	86.74
Non-operating income and expenses	(424,329)	13,721	(438,050)	(3,192.55)
Net Profit before tax for the period	188,905	342,103	(153,198)	(44.78)
Income tax benefits (expenses)	(35,932)	(64,654)	28,722	(44.42)
Net income after taxes this period	152,973	277,449	(124,476)	(44.86)
Description of change analysis: (1) The increases in operating revenue, operating costs, and gross operating profit were mainly due to the growing popularity of AI server applications, which drove a recovery in demand and a corresponding increase in costs. (2) The decrease in sales returns and allowances was mainly due to a reduction in the sale of obsolete inventory at a discount. (3) The increases in non-operating expenses was mainly due to higher exchange losses. (4) The decrease in income tax expense was mainly due to the decrease in profit before tax.

III. Cash flow

Analysis of cash flow movements for the most recent year

Unit: Thousands of NTD

Item	2025	2024	Change amount
Net cash flow from operating activities	(1,526,162)	376,437	(1,902,599)
Net cash flow from investing activities	45,620	61,388	(15,768)
Net cash flow from financing activities	392,250	829,508	(437,258)
Description of changes in cash flow: (1) Operating activities: The net cash outflow from operating activities increased compared to 2024, mainly due to the increase in accounts receivable and other receivables. (2) Investment activities: The net cash inflow from investment activities decreased compared to 2024, mainly due to the increase in expenditure on property, plant, and equipment. (3) Financing activities: The net cash inflow from financing activities decreased compared to 2024 mainly due to the increase in cash dividend payments.

Improvement plan for liquidity shortfall

The Company's funds are sufficient through fundraising events and can be used flexibly, so there is no problem of insufficient liquidity.

Analysis of cash liquidity in the coming year

Unit: Thousands of NTD

Opening balance of cash	Estimated annual net cash flow from operating activities	Estimated annual net cash outflow	Cash flow surplus (deficit) amount	Remedial measures for cash flow deficit
				Investment plan	Fundraising plan
801,462	640,500	1,143,900	298,062	—	—

IV. Influence of major capital expenditures on financial business during the most recent year: There was no major capital expenditure during the most recent year.

V. Investment policy for the most recent year, the main reasons for profit or loss, an improvement plan, and an investment plan for the following year.

(I) Reinvestment policy: We invest in the industries related to our areas of business, and the main consideration is to improve our competitive advantages.
(II) Main reasons for profit or loss: None.

VI. Risks that should be analyzed and assessed during the most recent year and as of the publication date of this annual report

(I) The impact of movements in interest rates or exchange rates and inflation on the Company's profit or loss and up to the publication date of this annual report and future countermeasures

The impact of movements in interest rates on the Company's profit or loss and future countermeasures

In recent years, the global economy has been continuously affected by monetary policy adjustments in major countries. Following the previous interest rate hike cycle, the US Federal Reserve gradually adjusted the direction of the monetary policy in Q2 2025. The overall interest rate environment was cautious. Due to the characteristics of the industry and operational needs, the Company will continue to have a demand for borrowings in New Taiwan dollars or foreign currencies in the future. With the number of banks to be decreased and business cooperation to be centralized, it will work closely with the banks to increase the loan amount, obtain the best interest rates, and reduce the interest rate risk.

The impact of movements in exchange rates on the Company's profit or loss and future countermeasures

In 2025, the fluctuation range of the NTD to USD exchange rate was greater than in previous years, and a more obvious appreciation occurred in the middle of the year, which may have had a certain degree of impact on the operations of enterprises with foreign currency denominated transactions. The accounts receivable and payable of the Company are mostly USD denominated, with a certain degree of natural hedging effect. We are committed to mitigating the risk arising from exchange rate fluctuations. Therefore, we not only keep track of macroeconomic conditions and changes in the foreign exchange market but also maintain close contact with the financial institutions. We regularly assess foreign currency positions and collect related foreign exchange information to adjust its cash and foreign currency position management strategies as needed. By taking this approach, we minimize the impact of exchange rate fluctuations on the Company's operations and profits.

The impact of inflation on the Company's profit or loss and future countermeasures

There was no inflation incident with a significant impact on the Company's profit or

loss during 2025 and up to the publication date of this annual report.

(II) The policy on engagement in high-risk and highly leveraged investment, loans to others, endorsements/guarantees provided, and derivatives trading, the main reason for profit or loss, and countermeasures

The Company has not engaged in high-risk and highly leveraged investments in 2025 and up to the date of publication of the annual report.
We did not provide loan nor endorsements/guarantees to others during 2025 and up to the publication date of this annual report.
The Company does not engage in derivatives trading.

(III) Future R&D plan and estimated R&D expenses

Project	Content
Visual AI platform	Providing multi-channel multi-AI model solutions for AI system-on-chip.
VLM Platform	Solutions for understanding visual and textual information
HDMI bidirectional control and power integration technology project	Industrial applications of the power over coaxial (PoC) Architecture: HDMI bidirectional control, power supply, and data transmission
A2B next-generation transceiver: Module audio daisy-chain project	A2B next-generation transceiver: Modular, lossless, zero-latency audio linking solution

We will continue to invest a great deal of manpower and funds in the IPs and platforms, and the R&D expenses will account for roughly 1% to 2% of our operating revenue.

(IV) The impact of the changes in important policies and regulatory environment at home or abroad on the Company's financial business and countermeasures

We have personnel responsible for paying close attention to changes in important policies and laws at home and abroad and promptly consulting legal and accounting experts and requesting them to assess the situation, provide advice, and draw up response measures. Thus, changes in applicable laws and regulations did not have a material impact on the Company's financial business.

(V) The impact of changes in technology (including cyber security risks) and the industry on the Company's financial business and countermeasures

The Company represents world-class manufacturers' products. In addition, as our clients are from a wide variety of fields, we can quickly keep abreast of industry trends and access market information ahead of our peers. Thus, changes in technologies and the industry have a positive impact on the Company.

(VI) Impact of a change in corporate image on corporate crisis management and countermeasures

Since the Company was incorporated, we have been committed to maintaining our corporate image and complying with laws and regulations. No incidents that have affected our corporate image have occurred so far.

(VII) Estimated benefits and potential risks of M&A during the most recent year and up to the publication date of this annual report and countermeasures

We did not have a plan to merge or acquire other companies during the most recent year and up to the publication date of this annual report.

(VIII) Estimated benefits and potential risks of plant expansion and countermeasures: N/A.

(IX) Risks of supplier or client concentration and countermeasures

The Company does not face a risk of client concentration. As for supplier concentration, although we face the risk of concentrating our purchases from ADI, this is actually a common characteristic of most electronic component distributors. We have worked with ADI for over 10 years with a close and positive partnership, and we have never experienced interruption of

135

supply with a material impact on our overall operations or clients' rights and interest. As the Company continues to expand by representing new product lines, such as AMD (Xilinx), ITE, the concentration of purchases from ADI has decreased year by year, so the risk of supplier concentration should be limited.

(X) The impact of massive transfer or replacement of shares by the directors, supervisors, or shareholders, each holding more than 10% of the shares issued by the Company, the risk thereof, and countermeasures

We control our equity in accordance with the competent authority's regulations, and we take the Company's interest and shareholders' equity as our top priority.

There was no massive transfer or replacement of shares by the directors or shareholders, each holding more than 10% during the most recent year and up to the publication date of this annual report.

(XI) The impact of a change in the Company's management right, the risk thereof, and countermeasures.

We did not have a change in the Company's management right during the most recent year and up to the publication date of this annual report.

(XII) In the case of a court case or a non-contentious case, specify the names of the directors, supervisors, the President, the de facto responsible person, shareholders each holding more than 10% of company shares, and subsidiaries with final ruling made or still in major legal proceedings, non-contentious matters, or administrative disputes, and where the result thereof may significantly affect shareholders' equity or stock price, disclose the fact of the contentions, the amount involved, the commencement date of the proceedings, the major litigants in the proceedings, and the status as of the publication date of this report: None.

(XIII) Other important risks and countermeasures None.

VII. Other important matters: None.

Six. Special Matters

I. Information related to the Company's affiliates:

Please refer to the Affiliation Documents on MOPS.

https://mopsov.twse.com.tw/mops/web/t57sb01_q10.

II. Private placement of securities in the most recent year up to the publication date of this annual report: None.

III. Other necessary supplementary information: None.

IV. Any event as specified in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act with a material impact on shareholders' equity or securities prices occurred during the most recent year and up to the publication date of this annual report: None.

136

macnica

Macnica Anstek Inc.

AI assistant

ANSTEK Annual Report 2025

52336_rns_2026-04-30_ba9c3058-6e37-460e-8497-115fb693acec.pdf

2025

Macnica Anstek Inc.

Regular Shareholder's Meeting Handbook

Macnica Anstek Inc.

Five. Review and Analysis of the Financial Position and Performance and Risk Management... 132

Six. Special Matters... 136

One. Letter to Shareholders

I. Business results

(II) Budget implementation status

1. Financial receipts and expenditures

2. Profitability analysis

II. Remuneration paid during the most recent fiscal year to directors of the board, supervisors, the president and vice presidents

(I) Remuneration paid to directors and independent directors

Climate-related information of publicly listed companies

1-1-2 GHG assurance information

1-2 GHG reduction targets, strategies, and concrete action plans

Three. Financing Activities

Four. Overview of Operations

I. Information on business

(I) Scope of business

3. Various product development trends

(1) Analog components: ADI

(2) Digital signal processor (DSP): ADI

4. Competition situation

2. Long-term business development plan

II. Overview of the market and production and sales

(I) Market analysis

Demand

(II) Important functions and production processes of main products

4. Labor-management agreement

VI. Cyber security management

1. Cyber security risk management framework

2. Cyber security policy

3. Specific management plans

II. Financial performance

III. Cash flow

Six. Special Matters

AI assistant

ANSTEK — Annual Report 2025

52336_rns_2026-04-30_ba9c3058-6e37-460e-8497-115fb693acec.pdf

2025

Macnica Anstek Inc.

Regular Shareholder's Meeting Handbook

Macnica Anstek Inc.

Five. Review and Analysis of the Financial Position and Performance and Risk Management... 132

Six. Special Matters... 136

One. Letter to Shareholders

I. Business results

(II) Budget implementation status

1. Financial receipts and expenditures

2. Profitability analysis

II. Remuneration paid during the most recent fiscal year to directors of the board, supervisors, the president and vice presidents

(I) Remuneration paid to directors and independent directors

Climate-related information of publicly listed companies

1-1-2 GHG assurance information

1-2 GHG reduction targets, strategies, and concrete action plans

Three. Financing Activities

Four. Overview of Operations

I. Information on business

(I) Scope of business

3. Various product development trends

(1) Analog components: ADI

(2) Digital signal processor (DSP): ADI

4. Competition situation

2. Long-term business development plan

II. Overview of the market and production and sales

(I) Market analysis

Demand

(II) Important functions and production processes of main products

4. Labor-management agreement

VI. Cyber security management

1. Cyber security risk management framework

2. Cyber security policy

3. Specific management plans

II. Financial performance

III. Cash flow

Six. Special Matters

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ANSTEK Annual Report 2025