Stock Code : 2820
Chain Bills Finance Corp. Annual Report is available at : http://www.cbf.com.tw/
Taiwan Stock Exchange Market Observation Post System : http://mops.twse.com.tw/

中華
票券
CBF

CHINA BILLS FINANCE CORPORATION

2025 ANNUAL REPORT

Printed on March 24,2026

Address and contact information of the Company's business units
One.	Headquarters	4F, No. 99, Sec. 2, Tiding Blvd., Taipei City Tel: (02)2799-1177 (Representative Line) Direct Line: (02)2799-9697 Fax: (02)2659-3267
	Banqiao Branch	3F, No. 51, Sec. 1, Wenhua Rd., Banqiao District, New Taipei City Tel: (02)2965-2611 (5 lines) Fax: (02)2965-2577
	Taoyuan Branch	17F, No. 110, Fuxing Rd., Taoyuan District, Taoyuan City Tel: (03)338-4501 (5 lines) Fax: (03)338-5833
	Taichung Branch	19F, No. 101, Sec. 1, Ziyou Rd., Taichung City Tel: (04)2224-6633 (6 lines) Fax: (04)2224-6685
	Tainan Branch	6F, No. 14, Sec. 2, Zhongyi Rd., Tainan City Tel: (06)226-0101 (5 lines) Fax: (06)228-2608
	Kaohsiung Branch	3F, No. 235, Zhongzheng 4th Rd., Kaohsiung City Tel: (07)211-5311 (10 lines) Fax: (07)251-2212
Two.	Independent Auditor:	Kuan-Hao Lee, CPA & Yin-Chou Chen, CPA Deloitte & Touche 20F, No. 100, Songren Rd., Xinyi District, Taipei City Tel: (02)2725-9988 Website: www.deloitte.com.tw
Three.	Stock Transfer Agency:	CTBC, Agency Dept. 5F, No. 83, Section 1, Chongqing South Rd., Taipei City Tel: (02)6636-5566 Website: www.chinatrust.com.tw
Four.	Credit rating organization:	Fitch Ratings, Ltd., Taiwan Branch Room A2, 23F, No. 68, Section 5, Zhongxiao East Rd., Xinyi District, Taipei City (Cathay Landmark) Tel: (02)8175-7600
Five.	Spokesman	Li-Fan Liu Title: Assistant Vice President Tel: (02) 2659-2316 Email: [email protected]
	Deputy Spokesman	Jen-Chien Chen Title: Assistant Vice President Tel: (02)2659-2326 Email: [email protected]
Six.	Website: www.cbf.com.tw

Content

Letter to Shareholders

Business Report 3
Business Plan Highlights and Future Development Strategies 6
Impact of External Competitive Environment, Regulatory Environment, and Overall Operating Environment 7
Latest credit rating result and the rating date 7

Corporate Governance Report

Information concerning the director, president, vice presidents, assistant vice presidents, department and branch managers and consultants 8
Information on Remuneration Paid to Directors, Presidents, Vice Presidents, and Consultants, and Remuneration Paid to Employees in the Most Recent Year 15
Implementation of Corporate Governance 21
Information about Independent Auditor Fees 59
Information about replacement of CPAs 60
The facts about the Company chairman, president, managerial officer in charge of financial or accounting affairs having served with the CPA Office or the affiliation thereof over the past year 60
Transfer/pledge of equity by directors, managers, and any officers required to declare equity under Article 10 of the Act Governing Bills Finance Business 61
Disclosure of information on related parties or spousal relationship or relations within second degree of kinship, among top ten shareholders, in terms of shareholdings 63
Total number of shares and total equity stake held in any single invested enterprise by the Company, its directors, President, vice presidents, assistant vice presidents, department and branch managers and any companies controlled either directly or indirectly by the Company 64

Capital Overview

Capital and Shares 65
Corporate bond, preferred stock, employee stock options, restricted stock for employees and merger & acquisition or succession to other financial institutions 69
Implementation of the Capital Utilization Plans 69

Overview of Operations

The content of business 70
Employees 76
Corporate Social Responsibilities and Ethics 78
Number of full-time non-managerial employees, their average and median salary, and the difference from the previous year 81
Information Equipment 81
Information Disclosure for Information and Communication Security Management 82
Labor Relations 86
Material Contracts 88
Intellectual Property Management Plan and Implementation Status 88

Review and analysis of financial status and financial performance and risk management

Financial Condition 90
Financial Performance 91
Cash flows 91
Impact of major capital expenditures in the most recent year on the Company's financial and business operations 91
Investment policy in the most recent year, main causes of investment profits or losses, improvement plans, and investment plans for the coming year 91
Risk Management 92
Crisis Response and Contingency Mechanisms 101
Other Major Items 102

Special Items

Information on Affiliated Enterprises 103
Private placement of securities in recent years up to the date of publication of the annual report 107
Other important supplementary information 107
Events in the previous year and up to the date of publication of the annual report that have a material impact on shareholders' equity or the price of the Company's securities pursuant to Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act 107

Letter to Shareholders

One. Business Report for 2025

I. Global and domestic economic environment in 2025

The global economy demonstrated resilience in the first half of 2025 but shifted toward a moderate slowdown in the second half of the year. Growth in the first half was primarily driven by temporary factors such as front-loaded trade activities and inventory adjustments, rather than a fundamental improvement in economic conditions. As these effects gradually faded, economic data weakened, labor markets softened, and tariff-related pressures pushed up inflation in the United States. Major international institutions generally expect global growth in 2026 to slow compared to 2025, with trade deceleration being particularly evident. According to S&P Global's forecast released on January 15, global economic growth is projected at 2.70% in 2026, representing a decline of 0.12 percentage points from 2.82% in 2025.

From a regional perspective, U.S. economic performance in 2025 was affected by fluctuations in exports and imports due to tariff policies, while investment and consumption were supported by the development of artificial intelligence (AI) and interest rate cuts by the Federal Reserve (Fed). Looking ahead to 2026, the U.S. economy will face uncertainties and lagged impacts from tariff policies; however, continued rate cuts by the Fed are expected to lower financing costs and improve credit conditions, potentially leading to a period of accelerated growth. In addition, supportive factors such as tax cuts under the "One Big Beautiful Bill Act (OBBBA)" and the midterm elections in November are expected to provide further impetus to U.S. economic growth. In the euro area, inflation has stabilized around the 2% target, while growth is supported by Germany's fiscal stimulus, funding from the EU Recovery and Resilience Facility, and increased defense spending. However, attention should be paid to high debt risks in Italy and France, as well as the impact of U.S. tariffs and competition from China. In Japan, if inflation stabilizes at around 2% and wages continue to grow, the interest rate normalization path is expected to remain unchanged. The yen exchange rate has fluctuated amid fiscal expansion pressures and optimistic sentiment driven by strong performance in the Japanese equity market. Mainland China continues to exhibit weak domestic demand but strong external demand. While consumer confidence remains subdued, manufacturing exports remain robust, and the development of the new economy has supported the equity market. The renminbi has appreciated beyond the 7 threshold, reflecting the People's Bank of China's flexible exchange rate policy and improving capital market conditions.

Looking ahead to 2026, the global economy will continue to face multiple challenges, particularly U.S. trade policies, China's industrial adjustments, the development of artificial intelligence, geopolitical conflicts, and climate change. These factors will not only affect Taiwan's export performance but also influence domestic demand and consumption through financial markets and import prices, warranting close monitoring.

Geopolitical risks and climate change remain key sources of global economic uncertainty. The Russia-Ukraine conflict remains unresolved, while escalating tensions in the Middle East have led to increased volatility in energy and commodity markets, affecting global supply chain stability and sustaining inflationary pressures. Meanwhile, climate change impacts have intensified, with extreme weather events such as heatwaves, droughts, and heavy rainfall occurring across many regions in 2025, disrupting food and energy supplies and increasing uncertainty surrounding inflation and economic growth in 2026.

Taiwan's economic growth in 2025 exceeded expectations, with the Chung-Hua Institution for Economic Research (CIER) estimating an annual growth rate of 7.43%. Despite increased policy uncertainty due to reciprocal tariffs, early inventory buildup and strong demand driven by AI-related investment and exports remained the primary growth drivers.

Looking ahead to 2026, global uncertainties remain elevated amid geopolitical tensions, tariff pass-through effects, high sovereign debt levels, accommodative fiscal policies, and an ongoing rate-cut cycle. While global economic growth is expected to moderate, AI development will continue to support industrial transformation and productivity gains. CIER forecasts Taiwan's economic growth at 4.14% in 2026. Growth is expected to be stronger in the first half and moderate in the second half, shifting from an "externally strong, domestically moderate" pattern in 2025 to a more balanced growth pattern in 2026.

Domestic inflation is expected to continue easing in 2026, supported by stable global commodity prices and declining oil prices. The CPI growth rate is projected at approximately 1.64%, similar to 1.66% in 2025, marking the fifth consecutive year of decline in the post-pandemic period.

II. Organizational changes

None.

III. Business plan implementation and operating performance

In guaranteed commercial paper business, new business momentum continued to strengthen in 2025. The Company actively implemented credit portfolio optimization strategies to enhance spreads. Supported by ample market liquidity since April 2025, income from guaranteed business exceeded budget targets.

In non-guaranteed commercial paper business, the Company maintained a leading market share in the bills market. Prior to the expiration of FRCP-related provisions, the Company actively expanded its FRCP client base. Coupled with abundant market liquidity since April 2025 and effective adjustments to existing portfolio strategies, performance of non-guaranteed bills business met budget expectations.

In Taiwan bond business, the Central Bank of Taiwan adopted a more accommodative monetary policy in response to tariff impacts, leading to lower short-term interest rates and improved carry spreads. Through portfolio maturity management and opportunistic acquisition of higher-yield positions, the Company achieved its target carry spreads.

In U.S. bond business, the Company realized capital gains in a timely manner to offset spread compression. However, tariff-driven inflation led the Federal Reserve to adopt a wait-and-see approach toward inflation trends and delay its rate-cut cycle, limiting the reduction in foreign currency funding costs and resulting in overall yields falling short of budget targets.

In equity-related business, market conditions in the first half of 2025 continued to be influenced by tariff policies and uncertainty regarding the timing of rate cuts by the Federal Reserve, increasing the difficulty of managing trading positions. OCI portfolio were gradually reduced at higher levels, resulting in the overall OCI portfolio not meeting the budget target.

In convertible bond, market sentiment remained cautious, with unclear price trends and trading volumes, resulting in performance falling short of budget targets.

In asset swap operations, amid volatile equity market conditions, demand increased and transaction yields rose. Under prudent credit risk management, the Company actively increased positions in medium- to high-yield assets, resulting in an improvement in overall returns.

The Company's key performance results in 2025 are as follows:

Unit: NTD million, USD million

Item	2025 (Year-end)	2024 (Year-end)	Change (%)
Underwriting and primary purchases of bills	3,812,999	3,711,181	2.74%
Trading of bills	8,757,943	7,817,529	12.03%
Balance of guaranteed commercial paper	117,479	114,282	2.80%
Trading of TWD-denominated bonds	2,211,002	1,949,819	13.40%
Trading of foreign currency bonds (USD)	17,256	18,180	-5.08%

IV. Budget execution, financial performance, and profitability analysis

In 2025, net interest income amounted to NT$924,012 thousand, net fee income to NT$1,607,919 thousand, net gains on financial assets and liabilities at fair value through profit or loss to NT$139,126 thousand, and realized net gains on financial assets at fair value through other comprehensive income to NT$316,136 thousand. Other non-interest net loss amounted to NT$8,618 thousand. Total net income reached NT$2,978,575 thousand.

Provisions totaled NT$108,857 thousand, and operating expenses were NT$614,291 thousand. Net income before tax was NT$2,255,427 thousand, and net income after tax was NT$1,796,079 thousand, with earnings per share of NT$1.34. Overall performance achieved 103% of the budget target.

V. Research and Development

To mitigate the risk of data leakage from unencrypted outgoing emails, the Company plans to implement an automatic email encryption system. It also plans to develop an electronic performance evaluation system to streamline processes and improve efficiency, as well as a cost allocation system for calculating funding costs of various business products. In response to the adoption of IFRS Sustainability Disclosure Standards starting in 2026, and the preparation of a dedicated sustainability section in the annual report, the Company has completed the identification of related risks, opportunities, and financial impacts, and has accordingly adjusted its internal control systems and operational processes.

In terms of employee training, the Company has established a digital learning platform for internal training programs and regularly invites academic experts and industry professionals to conduct seminars and professional courses. The Company also encourages employees to obtain professional certifications and participate in training programs offered by financial institutions to enhance professional capabilities and work efficiency.

As of the end of 2025, the Company had 158 employees. A total of 2,999 training attendances (6,670 hours) were recorded, averaging approximately 19 sessions (42 hours) per employee.

Two. Summary of Business Plan for 2026 and Future Development Strategies

I. Operating Guidelines

In guaranteed business, the Company will continue to optimize its customer portfolio to enhance the quality of credit assets and operating efficiency, thereby improving credit spreads and profitability. The Company will also actively expand into syndicated loans and non-real estate—backed financing to diversify fee income sources and increase overall returns from guaranteed business.
In non-guaranteed business, the Company will maintain its position as the second-largest market participant, strengthen customer relationships and penetration, and enhance bill portfolio allocation. Through stringent selection of inventory positions in terms of yield and tenor, together with flow-based trading strategies, overall returns will be improved.
In Taiwan bond business, the Company will closely monitor interest rate trends and gradually build positions in eligible debt instruments as existing positions mature, in order to enhance yields on TWD-denominated bond portfolios or capture capital gains through tactical trading. In foreign bond business, the Company will closely follow the Federal Reserve’s monetary policy and continuously monitor economic trends and market developments, while balancing carry strategies and opportunities for outright trading gains.
In equity-related business, the Company will continue to strengthen fundamental analysis, align trading positions with market trends, and selectively focus on leading sectors. It will also build positions in high-dividend OCI assets and long-term investments in companies with strong industry prospects and undervalued share prices.
The Company will flexibly adjust and develop various funding tools to secure lower-cost funding.

II. Expected operating Targets and Basis

Taking into account domestic and global economic conditions and industry developments, the Company’s major operating targets for 2026 are projected as follows:

The average outstanding balance of guaranteed commercial paper is projected to be NT$119.6 billion.
The average outstanding balance of underwriting and primary purchases of short-term bills is projected to be NT$591.4 billion.
The average outstanding balance of repo transactions for bills and bonds is projected to be NT$189.6 billion.

III. Key Operating Policies and Future Development Strategies

Please refer to the short-term and long-term business development plans on pages 75–76 of this annual report for further details.

Three. Impact of External Competitive, Regulatory, and Macroeconomic Environments

The domestic financial market continues to face competition from banks. Inflation remains a key policy focus for the central bank, and overall liquidity conditions are relatively stable and neutral, with a slight decline in funding costs. The external competitive environment is expected to remain intense.

To align with international standards, the competent authorities have in recent years introduced new measures on personal data protection, anti-money laundering and counter-terrorism financing, and the Common Reporting Standard. In addition, with increased regulatory emphasis on compliance and corporate governance, the Company has devoted additional resources to establishing and enhancing compliance frameworks in order to strengthen regulatory compliance effectiveness.

In 2025, the global economy exhibited regional divergence. Differences in economic performance and inflation across countries led to varying monetary policy approaches by central banks. The U.S. economy remained resilient; however, the resumption of tariff policies under the Trump administration hindered disinflation, prompting the Federal Reserve (Fed) to adopt a more cautious pace of rate cuts to balance economic growth and inflationary pressures. In Europe, economic recovery remained limited due to geopolitical tensions and rising energy costs. In Japan, structural labor shortages drove wage growth, helping the economy emerge from long-term deflation and supporting the Bank of Japan's gradual policy normalization. In China, although accommodative monetary and fiscal policies were implemented to stabilize the real estate market, weak domestic demand and export constraints continued to weigh on economic growth.

Looking ahead to 2026, inflationary pressures and geopolitical uncertainties may continue to affect market conditions. Close attention should therefore be paid to future economic developments and the policy directions of major central banks. The Company will continue to focus on its core businesses, strengthen risk management and capital efficiency, and enhance competitiveness and operational performance to mitigate the impact of external uncertainties. For further details on impact assessments, please refer to pages 71–76 and 98–101 of this annual report.

Four. Latest credit rating result and the rating date

On November 10, 2025, Fitch Ratings, Taiwan affirmed the Company's annual credit ratings as follows: National long-term rating "A+ (twn)", National short-term rating "F1 (twn)", with all ratings outlook "Stable".

Finally, we sincerely hope that all shareholders will continue to support and encourage the Company and its employees, as you have done in the past.

Wishing you good health and every success in your endeavors.

Sincerely,

CHENG-CHUAN CHANG

Cheng-Chuan Chang

Chairman

Cheng-Hsiang Wei

President

Corporate Governance Report

One. Information on directors, general manager, vice presidents, assistant vice presidents, heads of departments and branches, and consultants

I. Directors

(I) Board of directors information

Record date: March 24, 2026

Job Title	Nationality or Place of Registration	Name	Gender/Age	Date of Election (Appointment)	Term (years)	Date when first elected	Shareholding ratio (%)	Notes			Education and selected past positions	Concurrence positions at other companies	Education and selected past positions	Concurrence positions at other companies	Name	Name	Name	Name
								Shareholding	None	None
								None	None	None
Chairman	ROC	Cheng-Chuan Chang (Representative of O-Bank)	Male/Aged 61-70	2024.6.14	3 years	2011.6.14	380,982	380,982	28.36%	28.36%	None	None	Executive Vice President and also Chief Operation Officer of O-Bank Supervisor of IBT Leasing Co., Ltd Master of Business Administration (MBA), National Chengchi University	Chairman of China Bill Finance Corporation	None	None	None	None
Director	ROC	Chih-Yuan Hsu (Representative of O-Bank)	Male/Aged 41-50	2024.6.14	3 years	Re-appointed on 2022.3.10	380,982	380,982	28.36%	28.36%	None	None	Manager of Market Risk Management, Yuanta Commercial Bank Master of Commercial Mathematics, Soochow University	Assistant Vice President, Market Risk Management Section, Risk Management Department, O-Bank	None	None	None	None
Director	ROC	Chih-Yu Hsiao (Representative of O-Bank)	Female/Aged 41-50	2024.6.14	3 years	Re-appointed on 2021.3.22	380,982	380,982	1.510	1.510	None	None	Vice President and also Chief Strategy Officer/Chief Human Resources Officer of O-Bank Master of International Relations, The Johns Hopkins University	Vice President and Director of Strategic Development Department of O-Bank	None	None	None	None
Director	ROC	Yi-Ru Lo (Representative of Mingshan Investment Co., Ltd.)	Female/Aged 41-50	2024.6.14	3 years	2012.6.14	1.510	1.510	0.11%	0.11%	None	None	Director of Mingshan Investment Co., Ltd. Master of Educational Psychology, California Los Angeles University	Director of Mingshan Investment Co., Ltd.; Supervisor of Yi Chang Investment Co., Ltd.; Director of Tai Xuan Investment Co., Ltd.; Supervisor of Tai Ya Investment Co., Ltd.	None	None	None	None
Director	ROC	Si-Tsong Cheng (Representative of Ho-Chu Investment Co., Ltd.)	Male/Aged 51-60	2024.6.14	3 years	2018.6.14	77,084	77,084	5.73%	5.73%	None	None	Representative of Corporate Director COTA Commercial Bank Department of International Business, Fu Jen Catholic University	Representative of Corporate Director COTA Commercial Bank Department of International Business, Fu Jen Catholic University	None	None	None	None

Job Title	Notes				None	None	None	None	None
	Managers, directors or supervisors who are spouses or relatives within the second degree of kinship	Relationship	None	None	None	None	None	None	None
		Name	None	None	None	None	None	None	None
Concurrent positions at other companies	Education and selected past positions	Shares held under another person's name	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Shares held under another person's name	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Shares holding ratio (%)	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Shares (1,000)	77,084	77,084	77,084	77,084	77,084	77,084	77,084	77,084	77,084
Current shareholding	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Shareholding rate (%)	5.73%	5.73%	5.73%	5.73%	5.73%	5.73%	5.73%	5.73%	5.73%
Current shareholding	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Shareholding when elected	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Date when first elected	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Term (years)	Date of Election (Appointment)	Term (years)	Date of Election (Appointment)	Date of Election (Appointment)	Date of Election (Appointment)	Date of Election (Appointment)	Date of Election (Appointment)	Date of Election (Appointment)	Date of Election (Appointment)
Gender/Age	Name	Nationality or Place of Registration	Name	Name	Name	Name	Name	Name	Name
Job Title	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Director	ROC	Fan-Shuo Tseng (Representative of Ho-Chu Investment Co., Ltd.)	Male/Aged 41-50	Newly elected on June 14, 2024.	3 years	2024.6.14	7.26	None	None
Independent Director	ROC	Chung-Ming Kuo	Male/Aged 61-70	2024.6.14	3 years	2021.7.26	7.26	None	None
Independent Director	ROC	Hong-Dar Lin	Male/Aged 51-60	2024.6.14	3 years	2021.7.26	7.26	None	None
Independent Director	ROC	Shu-Fen, Liu	Female/Aged 61-70	Newly elected on June 14, 2024.	3 years	2024.6.14	7.26	None	None

(I) Major shareholders of corporate shareholders

Record date: December 31, 2025

Name of corporate shareholder	Major shareholders of corporate shareholders (Note)
O-Bank Co., Ltd.	Ming Shan Investment Co., Ltd.(12.64%); Yi Chang Investment Co., Ltd. (9.11%); Taixuan Investment Co., Ltd.(9.01%); Hengtong Machinery Co., Ltd. (4.74%); China Steel Co., Ltd.(3.40%); Taiya Investment Co., Ltd. (2.94%); San Ho Plastics Fab Co., Ltd. (1.99%);Chengyou Development Co., Ltd. (1.83%); Cheng-Chen Cheng (1.70%); The Great Taipei Gas Co., Ltd. (1.59%)
Ho-Chu Investment Co., Ltd.	Chia-Hung Ling (100%)
Mingshan Investment Co., Ltd.	KC Investments Corp. (86.11%); Tina Y. Lo(10.26%); Hong-Chu Investment Co., Ltd. (3.63%)

(II) Major shareholders of corporate shareholders who are representatives of the corporate shareholders

O-Bank

Record date: December 31, 2025

Name of corporate shareholder	Major shareholder of corporate shareholder (Note)
Mingshan Investment Co., Ltd.	KC Investments Corp. (86.11%); Tina Y. Lo (10.26%); Hongzhu Investment Co., Ltd. (3.63%)
Yi Chang Investment Co., Ltd.	Shenfeng Investment Co., Ltd. (55.78%); Triple Ace Management Co., Ltd. (42.79%); Yi-Chien Lo (1.43%)
Tai Xuan Investment Co., Ltd.	Sky Capital International Group Inc. (37.99%); Yi-Ru Lo (36.91%); Yu-Hsuang Chen (12.55%); Yu-Ta Chen (12.55%)
Hengtong Machinery Co., Ltd.	Heng Tingfang Investment and Development Co., Ltd. (17.78%); Tongqun Investment and Development Co., Ltd. (15.16%); Baitong Investment Co., Ltd. (13.62%); Teng-Yu Tseng (10.92%); Chia Wheel Enterprises Co., Ltd. (10.05%); Heng Jih Song Accurate Industries Co., Ltd. (7.68%); Teng-Ko Tseng (6.53%); Changyang Investment Co., Ltd. (6.52%); Xiangtai Investment Co., Ltd. (5.16%); Hongda Investment Co., Ltd. Company(3.64%)
China Steel Co., Ltd.	The Ministry of Economic Affairs (20.00%); China Steel Employees’ Shareholding Trust Account fund in custody of Mega International Commercial Bank (2.61%); Transglory Investment Corporation (1.63%); Chunghwa Post Co., Ltd. (1.20%); Winning Investment Co., Ltd. (1.02%); Yuanta/P-shares Taiwan Top 50 ETF (1.01%); JPMorgan Chase in custody for Vanguard Total International Equity Index (0.95%); Vanguard ETF account in custody of JPMorgan Chase Bank, N. A., Taipei Branch (0.91%); Taiwan Life Insurance Co., Ltd. (0.78%); Labor Retirement Fund under the new pension scheme (0.72%)
Chengyou Development Co., Ltd.	Jiqian Co., Ltd. (91.13%); Advanced Direction Industrial Co., Ltd. (2.17%); Abacus Display Infinity Co., Ltd. (1.75%); Mei Wang (1.24%); Yu Wang (1.17%); Hsien-Ming Meng (1.12%); Chao-Nien Meng (0.65%); James & David Co., Ltd. (0.50%); Jui Wang (0.26%); Ling-Ju Liao (0.01%)
The Great Taipei Gas Co., Ltd.	Eugene Wu(6.06%); Shin Kong Life Insurance Co., Ltd. (5.85%); Shin Kong Medical Foundation (5.54%); Yue Xinghua Investment Co., Ltd. (5.18%); Shinkong Synthetic Fibers Co., Ltd. (3.91%); Chi Yeh Chemical Co., Ltd. (3.00%); Ju Ying Industrial Co., Ltd. (2.70%); Shin-Kong Life Real Estate Service Co., Ltd. (2.27%); ShinKong Textile Co., Ltd. (2.08%); Shin-Hu Natural Gas Co., Ltd. (2.02%)
Tai Ya Investment Co., Ltd.	Crystal Lake Global Limited (65.91%); Shih-Tze Chen (34.09%)
San Ho Plastics Fab. Co., Ltd.	Cheng-Chen Cheng (22.44%); Jung-Hsiang Cheng (12.20%); Jung-Chi Cheng (11.56%); Kuang-Che Cheng (8.63%); Sen-Ho Cheng (6.45%); Po-Yun Cheng (5.52%); Po-Wen Cheng (5.38%); Hsin Cheng (4.50%); Sheng-yao Cheng (4.48%); Hung-Chun Cheng (3.80%)

Ho-Chu Investment Co., Ltd.

Name of corporate shareholder	Major shareholder of the corporation(Note)
None	None

Mingshan Investment Co., Ltd.

Name of corporate shareholder	Major shareholder of the corporation(Note)
KC Investments Corp	Paradise Palms Ltd.(100%)
Hong-Chu Investment Co., Ltd.	Tina Y. Lo (91.66%); Chin-Ming Lo (4.17%); Shih-Tze Chen (4.17%)

Note: The major shareholders refer to the top ten shareholders.

(III) Disclosure of Information on the Professional Qualifications of Directors and Independence of Independent Directors:
Record date: March 24, 2026

Qualifications Name	Professional qualifications and experience	Independence
Cheng-Chuan Chang	Have work experience in the area of commerce, legal affairs, finance, or accounting necessary for the business of the company and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as Vice President of O-Bank for 9 years	The interested party information form and past or present work experience fulfilled the criteria for independence.
Chih-Yuan Hsu	Have work experience in the area of commerce, legal affairs, finance, or accounting necessary for the business of the company and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as senior manager of O-Bank for more than 1 year • Served as Manager of the Market Risk Management Department of Yuanta Commercial Bank Co., Ltd. for 6 years	The interested party information form and past or present work experience fulfilled the criteria for independence.
Chih-Yu Hsiao	Have work experience in the area of commerce, legal affairs, finance, or accounting necessary for the business of the company and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as Vice President of O-Bank for more than 10 year	The interested party information form and past or present work experience fulfilled the criteria for independence.
Yi-Ru Lo	Have work experience in the area of commerce, legal affairs, finance, or accounting necessary for the business of the company and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as Director of Ming Shan Investment Co., Ltd. for more than 12 years	The interested party information form and past or present work experience fulfilled the criteria for independence.

Qualifications Name	Professional qualifications and experience	Independence	Number of positions as an Independent Director in other public listed companies concurrently
Si-Tsong Cheng	Have work experience in the area of commerce, legal affairs, finance, or accounting necessary for the business of the company and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as corporate director representative of COTA Commercial Bank for 2 years	The interested party information form and past or present work experience fulfilled the criteria for independence.	0
Fan-Shuo Tseng	Have work experience in the area of commerce, legal affairs, finance, or accounting necessary for the business of the company and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as chairman of Have Dream Construction Corp. for 3 years	The interested party information form and past or present work experience fulfilled the criteria for independence.	0
Chung-Ming Kuo	Nationally qualified as CPA, possesses accounting experience or experience necessary to the Company's operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as deputy director of PwC Taiwan for 2 years • Served as Managing Accountant of the high-asset family business inheritance consulting service of PwC Taiwan for 11 years	Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence.	3
Horng-Dar Lin	Nationally qualified as attorney in law, possesses legal experience or experience necessary to the Company's operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as the Practicing attorney in law at Winston & Strawn LLP for 3 years • Served as a judge of the Taipei District Court in Taiwan for 5 years	Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence.	1
Shu-Fen, Liu	Nationally qualified as attorney in law, possesses legal experience or experience necessary to the Company's operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act. • Served as Chief Compliance Officer, Legal & Compliance Division of O-Bank for 4 years • Served as Legal Affairs and Compliance Officer of Industrial Bank Taiwan for 18 years	Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence.	0

(IV) Board Diversity and Independence:

For the Company's Board of Directors diversification policy, goal, and fulfillment, refer to I. Operation of the Board of Directors under Three. Status of Corporate Governance of the Company's Annual Report (Pages 21-27).

II. Information concerning the president, vice presidents, assistant vice presidents, and department and branch managers

Record date: March 24, 2026

Job Title	Nationality	Name	Gender	The date on which the person was elected or took office.	Shares held	By spouse and underage children	Shares held under another person's name	Education and selected past positions	Concurrent positions at other companies	Managers who are spouses or relatives within the second degree of kinship	Relationship	None	None	None	None	None	None
President and also Chief Information Security Officer, CISO	ROC	Cheng-Hsiang Wei	Male	2020.02.25	None	None	None	None	None	None	None	None	None	None	None	None	None
Chief Auditor (Senior Executive Vice President)	ROC	Gwo-Cheng Tu	Male	2023.02.01	None	None	None	None	None	None	None	None	None	None	None	None	None
Vice President of the Head Office also Supervising the Corporate Finance Department (Concurrently held since May 1, 2025)	ROC	Yong-Chih Wang	Male	2023.06.01	None	None	None	None	None	None	None	None	None	None	None	None	None
Vice President of Fixed Income Product Department and also Financial Officer and Head of Equity Products Department (Relieved of concurrent position as of May 1, 2025)	ROC	Ya-Ling Yang	Female	2022.07.20	None	None	None	None	None	None	Taiwan Cooperative Securities - Vice President/Head of the Bond Department Graduate Program in Law, National Chengchi University	None	None	None	None	None	None
Assistant Vice President of Equity Products Department (Transferred as of May 1, 2025) and also Acting Spokesperson	ROC	Jen-Chieh Chen	Male	2025.05.01	None	None	None	None	None	None	0.01%	None	None	None	None	None	None
Assistant Vice President of Risk Management Department and also Corporate Governance Officer	ROC	Yi-Chang Kan	Male	2017.02.01	None	None	None	None	None	None	86,000	None	None	None	None	None	None
Assistant Vice President of Administration Department and also Spokesperson (Succeeded to the position on January 1, 2025)	ROC	Li-Fan Liu	Male	2025.01.01	None	None	None	None	None	None	None	None	None	None	None	None	None
Assistant Vice President of Information Technology Department	ROC	Hung-Ta Chou	Male	2017.01.18	58	58	None	None	None	None	None	None	None	None	None	None	None
Assistant Vice President of Legal Compliance Department (Succeeded to the position on January 1, 2025)	ROC	Li-Min Ou	Male	2025.01.01	None	None	None	None	None	None	None	None	None	None	None	None	None

Job Title	Nationality	Name	Gender	The date on which the person was elected or took office.	Shares held under another person's name	Bypouse and underage children	Bharcholding ratio (%)	Name	Name	Name	Name	Name	Name	Name	Name
Manager of the Operation Department (Resigned on July 14, 2025)	ROC	Min-Mei Huang	Female	2017.07.01	None	None	None	None	None	None	None	None	None	None	None
Manager of the Operation Department (Succeeded to the position on July 14, 2025)	ROC	Ju-Ching Lin	Female	2025.07.14	559	None	0.00%	None	0.00%	None	None	None	None	None	None
Assistant Vice President of Kaohsiung Branch	ROC	Ming-Chi Chou	Male	2022.01.01	None	None	None	None	None	None	None	None	None	None	None
Assistant Vice President of Taichung Branch	ROC	Pei-Hsia Lu	Female	2024.06.01	None	None	0.00%	None	0.00%	None	None	None	None	None	None
Assistant Vice President of Taoyuan Branch	ROC	Shan-Hsien Wang	Male	2022.02.01	1,466	719	600	None	None	None	None	None	None	None	None
Assistant Vice President of Banqiao Branch	ROC	Chung-Hsien Tsao	Male	2018.05.01	719	None	None	None	None	None	None	None	None	None	None
Accounting Supervisor (Succeeded to the position on January 1, 2025)	ROC	Yu-Yi Fang	Female	2025.01.01	600	None	None	None	None	None	None	None	None	None	None

III. Consultants who are former Chairman and President of the Company or its affiliates

Nil.

Two. Information on Remuneration Paid to Directors, Presidents, Vice Presidents, and Consultants, and Remuneration Paid to Employees in the Most Recent Year

(I) Remuneration to ordinary Directors and Independent Directors

Unit: NT$1,000

Record date: December 31, 2025

Title	Name	Remuneration to directors				Total Remuneration (A+B+C+D+E+F+G) as a % of the Net Income after Tax	Remuneration from concurrently servings as employees		None	12,294		None
		Total Remuneration	Companies included into the financial statement		18,063 (1.00%)		32,502 (1.81%)			56,559 (3.15%)
				the Company		18,063 (1.00%)	32,502 (1.81%)		5,994 (0.33%)		56,559 (3.15%)
		Employer Compensation (G)	Companies included into the financial statement	Stock	None			None	None	None	None	None
			Cash	None				None	None	None	None	None
			the Company	Stock	None			None	None	None	None	None
Pension upon retirement (F)	Companies included into the financial statement	Companies included into the financial statement		Companies included into the financial statement	None			None	None	None	None	None
		the Company		None			None	None	None	None	None
		the Company		None			None	None	None	None	None
Wages, bonuses, and special allowances, etc. (E)	Companies included into the financial statement	Companies included into the financial statement		Companies included into the financial statement	18,063 (1.00%)			32,502 (1.81%)	5,994 (0.33%)	56,559 (3.15%)
		the Company		18,063 (1.00%)	32,502 (1.81%)			5,994 (0.33%)	56,559 (3.15%)
		the Company		18,063 (1.00%)	32,502 (1.81%)			5,994 (0.33%)	56,559 (3.15%)
Total Remuneration (A+B+C+D) as a % of the Net Income after Tax	Service Expenses (D)	Companies included into the financial statement		144			566	594	1,304
		the Company		144			566	594	1,304
		the Company		144			566	594	1,304
Director	O-Bank Co., Ltd.	Companies included into the financial statement		17,439			17,439	17,439	34,878
	Mingshan Investment Co., Ltd.	Companies included into the financial statement		17,439			17,439	17,439	34,878
	Ho-Chu Investment Co., Ltd.	the Company		None			None	None	None
Independent Director	Cheng-Ming Kuo	Companies included into the financial statement		480			14,497	5,400	20,377
	Hong-Dar Lin	the Company		480			14,497	5,400	20,377
	Shu-Fen, Liu	the Company		480			14,497	5,400	20,377
Total		20,377

Please describe the remuneration policy, system, criteria, and structure for independent directors, and the relationship between remuneration and factors such as the duties and risks available and the time commitment involved:
Pursuant to the Company's Articles of Incorporation, independent directors do not participate in profit distribution. They are provided with a fixed monthly remuneration higher than that of non-independent directors, and are also entitled to attendance fees based on the responsibilities associated with their independent roles. The amount of attendance fees is determined based on actual attendance.

Note: Bonuses and employee remuneration received in their capacity as employees (concurrently held positions) are disclosed based on actual amounts paid and estimated amounts, respectively.

Breakdown of Remuneration

Breakdown of remuneration to directors (NT$)	Directors
	Sum of foregoing four items (A+B+C+D)		Sum of foregoing seven items (A+B+C+D+E+F+G)
	the Company	Companies included into the financial statement	the Company	Companies included into the financial statement
Below 1,000,000	Yi-Ru Lo; Si-Tsong Cheng; Chih-Yu Hsiao; Chih-Yuan Hsu; Fan-Shuo, Tseng	Yi-Ru Lo; Si-Tsong Cheng; Chih-Yu Hsiao; Chih-Yuan Hsu; Fan-Shuo, Tseng	Yi-Ru Lo; Si-Tsong Cheng; Chih-Yu Hsiao; Chih-Yuan Hsu; Fan-Shuo, Tseng	Yi-Ru Lo; Si-Tsong Cheng; Chih-Yu Hsiao; Chih-Yuan Hsu; Fan-Shuo, Tseng
NT$1,000,000 (incl.) ~ NT$2,000,000 (excl.)	Shu-Fen, Liu; Chung-Ming Kuo; Horng-Dar Lin	Shu-Fen, Liu; Chung-Ming Kuo; Horng-Dar Lin	Shu-Fen, Liu; Chung-Ming Kuo; Horng-Dar Lin	Shu-Fen, Liu; Chung-Ming Kuo; Horng-Dar Lin
NT$2,000,000 (incl.) ~ NT$3,500,000 (excl.)	Nil	Nil	Nil	Nil
NT$3,500,000 (incl.) ~ NT$5,000,000 (excl.)	Nil	Nil	Nil	Nil
NT$5,000,000 (incl.) ~ NT$10,000,000 (excl.)	Mingshan Investment	Mingshan Investment	Mingshan Investment	Mingshan Investment
NT$10,000,000 (incl.) ~ NT$15,000,000 (excl.)	Cheng-Chuan Chang; Ho-Chu Investment	Cheng-Chuan Chang; Ho-Chu Investment	Cheng-Chuan Chang; Ho-Chu Investment	Cheng-Chuan Chang; Ho-Chu Investment
NT$15,000,000 (incl.) ~ NT$30,000,000 (excl.)	O-Bank	O-Bank	O-Bank	O-Bank
NT$30,000,000 (incl.) ~ NT$50,000,000 (excl.)	Nil	Nil	Nil	Nil
NT$50,000,000 (incl.) ~ NT$100,000,000 (excl.)	Nil	Nil	Nil	Nil
NT$100,000,000 or above	Nil	Nil	Nil	Nil
Total	12 persons	12 persons	12 persons	12 persons

Unit: NT$1,000
Record date: December 31, 2025

Schedule: 2025 Vehicles and Imputed Annual Rental Value for Directors (including Independent Directors)

Title	User	Imputed annual rent	Oil subsidy	Remarks
Director	Cheng-Chuan Chang	414	34	Rented

Note: The total amount of drivers' salaries and overtime pay during the directors' tenure in 2025 was NT$737 thousand.

(II) President and Vice Presidents Remuneration

Unit: NT$1,000

Record date: December 31, 2025

Title	Name	Wages (A)	Pension upon retirement (B)	Companies included into the financial statement	Stock	Incl	Companies included into the financial statement	Total Remuneration (A+B+C+D) as a % of the Net Income after Tax	Remuneration from investees other than a subsidiary or from the parent company	Remuneration from investees other than a subsidiary or from the parent company
the Company	Companies included into the financial statement	the Company	Companies included into the financial statement	the Company	Companies included into the financial statement	the Company	Companies included into the financial statement	the Company	Companies included into the financial statement	the Company
President	Cheng-Hsiang Wei	12,308	12,308	Nil	Nil	14,556	14,556	4,831	Nil	4,831
Vice President	Ya-Ling Yang
Yong-Chih Wang
Gwo Cheng Tu

Note: Bonuses and employee remuneration received are disclosed based on actual amounts paid and estimated amounts, respectively.

Breakdown of Remuneration

Breakdown of remuneration to president and vice presidents (NT$)	President and vice presidents
	the Company	Companies included into the financial statement
Below 1,000,000	Nil	Nil
NT$1,000,000 (incl.) ~ NT$2,000,000 (excl.)	Nil	Nil
NT$2,000,000 (incl.) ~ NT$3,500,000 (excl.)	Nil	Nil
NT$3,500,000 (incl.) ~ NT$5,000,000 (excl.)	Nil	Nil
NT$5,000,000 (incl.) ~ NT$10,000,000 (excl.)	Gwo Cheng Tu; Ya-Ling Yang; Yong-Chih Wang	Gwo Cheng Tu; Ya-Ling Yang; Yong-Chih Wang
NT$10,000,000 (incl.) ~ NT$15,000,000 (excl.)	Cheng-Hsiang Wei	Cheng-Hsiang Wei
NT$15,000,000 (incl.) ~ NT$30,000,000 (excl.)	Nil	Nil
NT$30,000,000 (incl.) ~ NT$50,000,000 (excl.)	Nil	Nil
NT$50,000,000 (incl.) ~ NT$100,000,000 (excl.)	Nil	Nil
NT$100,000,000 or above	Nil	Nil
Total	4 persons	4 persons

Schedule: 2025 Vehicles and Imputed Annual Rental Value (President and Vice Presidents)

Unit: NT$1,000

Record date: December 31, 2025

Title	User	Imputed annual rent	Oil subsidy	Remarks
President	Cheng-Hsiang Wei	408	146	Rented
Vice President	Ya-Ling Yang	Nil		Nil
	Yong-Chih Wang
Chief Auditor	Gwo Cheng Tu	251		Rented

Note: The total amount of drivers’ salaries and overtime pay during the President’s tenure in 2025 was NT$825 thousand.

(III) Managers Receiving Employee Compensation and Distribution

Unit: NT$1,000

Record date: December 31, 2025

	Title	Name	Stock	Cash	Total	The sum as percentage of net income (%)
Managers	President	Cheng-Hsiang Wei	Nil	10,664	10,664	0.59%
	Chief Auditor	Gwo Cheng Tu
	Vice President of the Head Office and also Head of Fixed Income Product Department and Financial Officer	Ya-Ling Yang
	Vice President of the Head Office also Supervising the Corporate Finance Department	Yong-Chih Wang
	Assistant Vice President of Risk Management Department and also Corporate Governance Officer	Yi-Chang Kan
	Assistant Vice President of Equity Products Department	Jen-Chieh Chen
	Manager of the Operation Department (Resigned on July 14, 2025)	Min-Mei Huang
	Manager of the Operation Department (Succeeded to the position on July 14, 2025)	Ju-Ching Lin
	Assistant Vice President of Administration Department	Li-Fan Liu
	Assistant Vice President of the IT Office	Hung-Ta Chou
	Assistant Vice President of Legal Affairs and Compliance Office	Li-Min Ou
	Assistant Vice President of Kaohsiung Branch	Ming-Chi Chou
	Assistant Vice President of Tainan Branch	Ruei-Wen Tseng
	Assistant Vice President of Taichung Branch	Pei-Hsia Lu
	Assistant Vice President of Taoyuan Branch	Shan-Hsien Wang
	Assistant Vice President of Banqiao Branch	Chung-Hsien Chao

Note: Employee compensation is disclosed based on estimated amounts.

(IV) Analysis of the ratio of total remuneration paid by the Company to its directors, President, and Vice Presidents to the Company’s net income after tax, as reported in the parent company only financial statements or individual financial statements, for the most recent two years, together with a description of the remuneration policies, standards, and structure, the procedures for determining remuneration, and the relationship between remuneration and the Company’s operating performance and future risk exposure.

(1) Ratio of total remuneration of directors, the President, and Vice Presidents to net income after tax:

In 2025, the ratio of total remuneration of directors, the President, and Vice Presidents to net income after tax was 4.91%.

In 2024, the ratio of total remuneration of directors, the President, and Vice Presidents to net income after tax was 4.87%.

(2) Remuneration policies, standards and structure; procedures for determining remuneration and the relationship between remuneration and operating performance and future risk exposure:

Remuneration Policies, Standards, and Structure

(1) The remuneration of the Company’s directors is determined in accordance with Article 18-2 of the Articles of Incorporation, which authorizes the Board of Directors to resolve such matters based on the extent of each director’s participation in the Company’s operations and the value of their contributions, with reference to prevailing practices in the financial services industry. In addition, where the Company records profits in a given fiscal year, up to 2.50% of such profits may be allocated for directors’ remuneration in accordance with Article 32 of the Articles of Incorporation. Independent directors are not entitled to participate in the distribution of such remuneration. In December 2025, the Board of Directors approved the “Regulations Governing the Allocation and Distribution of Directors’ and Employees’ Remuneration.” Based on the profit allocation mechanism stipulated in Article 32 of the Articles of Incorporation, the Company introduced a linkage mechanism between earnings per share (EPS) and the allocation ratio, thereby strengthening the performance-based remuneration system to better recognize and reward directors’ contributions.

Given the increase in the Company’s net income after tax in 2025 and the satisfactory achievement of various operating targets, directors’ remuneration for the year increased compared to 2024.

(2) The remuneration of the Company’s senior management is governed by the “Employee Salary Guidelines” and the “Regulations Governing the Accrual and Distribution of Year-End Bonuses,” which set out various allowances and bonuses to recognize and reward employees’ efforts and contributions. Bonuses are determined based on the Company’s annual operating performance, financial condition, business performance, and individual performance. In determining bonuses for senior management, the Company takes into account the results of performance evaluations conducted in accordance with the “Employee Performance Management Guidelines” and the “Employee Performance Appraisal Implementation Procedures.” The performance evaluation criteria for senior management comprise the following: 1. Financial indicators: including, but not limited to, business target achievement rate, cost-to-income ratio, and asset quality, with reference to the extent to which senior management achieves their assigned targets. 2. Non-financial indicators: including regulatory compliance, internal control and risk management, sustainability objectives, and climate-related risk targets. Remuneration is determined based

on the above performance evaluation metrics, and the remuneration system is reviewed and adjusted in a timely manner in response to actual operating conditions and applicable regulations. Furthermore, in 2025, the Company established sustainability-related performance evaluation indicators for the President, including carbon reduction targets, carbon reduction strategies and specific action plans, implementation of projects related to the IFRS Sustainability Disclosure Standards, and enhancement of corporate governance evaluation results (renamed ESG evaluation starting from 2026).

(3) In accordance with Article 32 of the Company's Articles of Incorporation, if the Company records a profit in a given fiscal year, between 1.00% and 2.50% of such profit shall be allocated as employee remuneration. However, where the Company has accumulated losses, an amount sufficient to offset such losses shall be reserved in advance. To enable employees to share in the Company's operating results, it is stipulated that no less than 15% of the total employee remuneration allocation shall be distributed to junior employees. In December 2025, the Board of Directors approved the "Regulations Governing the Allocation and Distribution of Directors' and Employees' Remuneration." Based on the profit allocation mechanism set out in Article 32 of the Articles of Incorporation, the Company introduced a linkage mechanism between earnings per share (EPS) and the allocation ratio, thereby strengthening the performance-based remuneration system to incentivize and retain talented employees.

(4) The Company's remuneration structure comprises cash compensation, retirement benefits or severance pay, various allowances, and other forms of substantive incentives. The scope of such remuneration is consistent with the requirements set forth in the Regulations Governing Information to be Published in Annual Reports of Public Companies with respect to remuneration for directors and managerial officers.

2. Procedures for Determining Remuneration

(1) To regularly evaluate the remuneration of directors and senior management, the Company bases such evaluation on the results of performance assessments conducted in accordance with the "Rules for Board Performance Evaluation" applicable to directors and the "Employee Performance Appraisal Implementation Procedures" applicable to senior management. The remuneration of senior management is determined with reference to performance indicators linked to the Company's operating performance and is subject to review and approval by the Board of Directors. To more accurately reflect the achievement of performance targets, the performance evaluation of the President is based on the Company's annual operating results. The scope of evaluation includes financial performance, management and team leadership, projects and processes, regulatory compliance and internal control, customer relationships, and sustainable development.

(2) In 2025, the Company engaged an external independent professional institution to conduct performance evaluations of the Board of Directors, individual directors, and members of all functional committees, and the results significantly exceeded the established benchmarks. The Company proactively implemented forward-looking strategies, including revenue enhancement and cost control measures, as well as strategic business restructuring to optimize operational efficiency, resulting in profitability exceeding expectations. Accordingly, based on the results of the 2025 performance evaluations, all senior management achieved or exceeded their designated performance targets.

(3) The performance evaluation and remuneration appropriateness of the Company's directors and senior management are subject to regular annual review and approval by the Remuneration Committee and the Board of Directors. The actual remuneration amounts paid to directors and senior management in 2025 were reviewed by the Remuneration Committee and subsequently resolved by the Board of Directors.

Performance evaluations of directors are conducted in accordance with the “Rules for Board Performance Evaluation.” The assessment criteria include: (a) understanding of the Company’s goals and missions; (b) awareness of directors’ responsibilities; (c) level of participation in the Company’s operations; (d) management of internal relationships and communication; (e) professional expertise and continuing education; and (f) internal control.

Performance evaluations of senior management take into account individual performance achievement and contributions to the Company, with reference to industry practices in the financial sector, the Company’s overall operating performance, industry risk outlook and development trends. The remuneration system is also reviewed and adjusted in a timely manner in response to actual operating conditions and applicable regulations. In addition, taking into account prevailing corporate governance trends, the Company provides reasonable remuneration to achieve an appropriate balance between sustainable development and risk management.

3. Relationship Between Remuneration, Operating Performance, and Future Risk Exposure

(1) The Company’s remuneration policy and the review of relevant compensation standards and systems are primarily based on the Company’s overall operational performance. Compensation standards are determined with reference to the achievement and contribution levels of both financial and non-financial performance indicators, including sustainability metrics, with the aim of enhancing the overall effectiveness of the Board of Directors and executive management team. In addition, industry remuneration benchmarks are taken into consideration to ensure that the compensation of the Company’s management remains competitive, thereby facilitating the retention of top managerial talent.

(2) The review of the Company’s remuneration policies, standards, and systems is primarily based on the Company’s overall operating performance. Compensation standards are determined with reference to the achievement rates and contribution levels of both financial and non-financial performance indicators (including sustainability indicators), with the aim of enhancing the overall effectiveness of the Board of Directors and the management team. In addition, industry remuneration benchmarks are taken into consideration to ensure that the Company’s management compensation remains competitive, thereby facilitating the retention of high-caliber managerial talent.

Three. Status of Corporate Governance Implementation

I. Operation of the Board of Directors

(I) Board Diversity and Independence Policy and Implementation

1. Board Diversity Policy

The Company has established a board diversity policy, as set forth in Article 33 of the Company’s Corporate Governance Best Practice Principles and Article 3 of the Regulations Governing the Election of Directors. The composition of the Board of Directors shall take diversity into consideration and formulate an appropriate diversity policy based on the Company’s operational characteristics, business model, and development needs. Such policy should cover, but not be limited to, the following two aspects:

(1) Basic requirements and values: Gender, age, nationality, and culture, et al.

(2) Professional knowledge and skills: Professional background (e.g., law, accounting, industry, finance, marketing, or technology), professional skills, and industry experience.

Each director shall possess the knowledge, skills, and competencies necessary to perform their duties. The Board of Directors as a whole shall possess the following capabilities:

Operational judgment
Accounting and financial analysis
Business management
Crisis management
Industry knowledge
International market perspective
Leadership
Decision-making

2. Specific Objectives and Implementation Status of Board Diversity Policy

The specific objectives are as follows:

(1) The Board of Directors shall include no fewer than three members with work experience relevant to the Company's business.

(2) In light of the growing global importance of sustainable development, the Company encourages directors to continuously enhance their ESG-related expertise in order to strengthen the Board's oversight and decision-making capabilities on sustainability matters.

(3) To implement the national policy on gender equality, the Company aims to enhance gender diversity on the Board of Directors, with directors of either gender accounting for at least one-third of the total board seats.

(4) To maintain independence, more than half of the independent directors shall not serve more than three consecutive terms (nine years).

(5) The number of independent directors shall not be less than one-third of the total number of directors.

The status of achievement of the above objectives is as follows:

The Company's current Board of Directors consists of nine directors, including three independent directors, representing 33.3% of the Board. Among the independent directors, two have served for four years and one has served for one year, and none of the independent directors has served more than three consecutive terms. In terms of age distribution, three directors are between 61 and 70 years old, two are between 51 and 60 years old, and four are between 41 and 50 years old. The Board includes three female directors, accounting for 33.3% of the total, and none of the directors concurrently holds an employee position.

Overall, the current Board demonstrates diversity in terms of gender, age, nationality, and cultural background, and comprises members with diverse industry experience and professional expertise. Among the current directors, three have more than five years of banking experience and have served as Deputy General Managers of banks, and one has more than three years of banking experience and has served as a bank manager. Among the three independent directors, two have a legal background and one has an accounting background. In general, the Board possesses the professional knowledge, skills, and integrity required to effectively perform its supervisory and decision-making functions (please refer to the table on

Board Diversity and Professional Capabilities below). In addition to sustainability-related training programs arranged by the Company, four directors voluntarily participated in sustainability-related training courses in 2025, further strengthening the Board's expertise in sustainability.

3. Independence of the Board of Directors:

According to the Company's "Corporate Governance Best Practice Principles," the number of independent directors shall be no fewer than three and shall not be less than one-fifth of the total number of directors. Independent directors may not concurrently serve as independent directors of more than three other public companies, and their consecutive terms should not exceed three terms. In addition, more than half of the directors shall not have spousal relationships or relationships within the second degree of kinship with any other director.

(1) The current Board of Directors consists of nine directors, including three independent directors, representing $33\%$ of the Board. The nomination and election of independent directors comply with the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies." In addition to requiring candidates to sign declarations of independence, the Company has established procedures to verify their professionalism and independence. Following approval by the Board of Directors, candidates are submitted to the shareholders' meeting for election.
(2) Of the three independent directors in the current term, two concurrently serve as independent directors of other public companies.
(3) None of the three independent directors in the current term has served more than three consecutive terms.
(4) There are no spousal relationships or relationships within the second degree of kinship among the Company's directors, among independent directors, or between directors and independent directors.

4. Status of Board Diversity Implementation

Record date: March 24, 2026

Item Name	Gender	Term and seniority of independent directors			Operational judgment	Accounting and Finance Expertise	Business management	Industry Experience	Marketing Perspective	International Marketing Perspective	Crisis management	Leadership	Decision-making
		under 3 years	3-9 years	More than 9 years
Cheng-Chuan Chang	Male	-	-	-	V	V	V	V	V	V	V	V	V
Chih-Yuan Hsu	Male	-	-	-	V	-	V	V	V	V	V	V	V
Chih-Yu Hsiao	Female	-	-	-	V	-	V	V	V	V	V	V	V
Yi-Ru Lo	Female	-	-	-	V	-	V	V	V	V	V	V	V
Si-Tsong Cheng	Male	-	-	-	V	V	V	V	V	V	V	V	V
Fan-Shuo, Tseng	Male	-	-	-	V	-	V	-	V	V	V	V	V
Shu-Fen, Liu	Female	V	-	-	V	-	V	V	V	V	V	V	V
Chung-Ming Kuo	Male	-	V	-	V	V	V	V	V	V	V	V	V
Horng-Dar, Lin	Male	-	V	-	V	-	V	V	V	V	V	V	V

(II) Status of members' attendance

The Board held 15(A) meetings in the most recent year. The attendance of directors is summarized as follows:

Record date: March 24, 2026

Title	Name	Actual presence (attendance) counts (B)	Counts of presence by proxy	Actual presence (attendance) rate (%) (B/A)
Chairman	Cheng-Chuan Chang (O-Bank)	15	0	100%
Director	Chih-Yuan Hsu (O-Bank)	15	0	100%
Director	Chih-Yu Hsiao (O-Bank)	15	0	100%
Director	Yi-Ru Lo (Mingshan Investment)	14	1	93.33%
Director	Si-Tsong Cheng (Ho-Chu Investment)	15	0	100%
Director	Fan-Shuo, Tseng (Ho-Chu Investment)	14	1	93.33%
Independent Director	Chung-Ming Kuo	15	0	100%
Independent Director	Horng-Dar, Lin	15	0	100%
Independent Director	Shu-Fen, Liu	15	0	100%

Other items to be stated:
I. If any of the following circumstances exists, specify the board meeting date, meeting session number, content of the motion(s), the opinions of all the independent directors, and the measures taken by the Company in response to the opinions of the independent directors:
(I) The circumstances referred to in Article 14-3 of the Securities and Exchange Act;
(II) Any other documented objections or qualified opinions raised by an independent director against a board resolution: see the following table.
II. Details of directors' recusal due to conflicts of interest, including the director's name, proposal content, reasons for recusal, and voting participation status, are presented in the table below

Board of Directors Meeting Date / Session	Proposal Content and Handling	Matters Under Article 14-3 of the Securities and Exchange Act
January 21, 2025
16th Term, 9th Meeting	Proposal on the performance evaluation of the President for 2024.
Company’s response to the independent directors’ comments: None.
(Recusal of attending executives)
Resolution: Approved unanimously by all attending directors.	✓	None
	Proposal on the performance bonus distribution for managerial personnel at or above the managerial level for 2024.
Company’s response to the independent directors’ comments: None.
(Independent Director Chung-Ming Kuo acted as Chairman)
(Recusal of attending executives)
Resolution: Except for Chairman Cheng-Chuan Chang, who recused himself from deliberation and voting due to a conflict of interest, all other attending directors approved the proposal without objection.	✓	None

Board of Directors Meeting Date / Session	Proposal Content and Handling	Matters Under Article 14-3 of the Securities and Exchange Act	Objections or Reservations from Independent Directors
March 25, 2025 16th Term, 11th Meeting	Proposal for the distribution of directors' remuneration and employee compensation for 2024. Company's response to the independent directors' comments: None. Resolution: Approved unanimously by all attending directors.	✓	None
	Proposal to continue engaging Deloitte & Touche for the Company's financial and tax audit and attestation services for 2025. Company's response to the independent directors' comments: None. Resolution: Approved unanimously by all attending directors.	✓	None
April 30, 2025 16th Term, 12th Meeting	Proposal on the distribution of directors' remuneration for 2024. Company's response to the independent directors' comments: None. (Independent Director Chung-Ming Kuo acted as Chairman) Resolution: Except for the institutional directors representing O-Bank (Cheng-Chuan Chang, Chih-Yu Hsiao, and Chih-Yuan Hsu), Mingshan Investment (Yi-Ru Lo), and Ho-Chu Investment (Si-Tsong Cheng and Fan-Shuo, Tseng), who recused themselves from deliberation and voting due to conflicts of interest related to the entities they represent, all other attending directors approved the proposal without objection.	✓	None
	Proposal on the distribution of employee compensation for the President and managerial personnel at or above the department/branch head level for 2024. Company's response to the independent directors' comments: None. (Recusal of attending executives) Resolution: Approved unanimously by all attending directors.	✓	None
	Proposal to adjust employee salaries by up to 3.2% with reference to industry practices, effective retroactively from April 1, 2025. Company's response to the independent directors' comments: None. Resolution: Approved unanimously by all attending directors.	✓	None
	Proposal on the adjustment of monthly remuneration for the President and managerial personnel at or above the department/branch head level, effective retroactively from April 1, 2025. Company's response to the independent directors' comments: None. (Recusal of attending executives) Resolution: Approved unanimously by all attending directors.	✓	None
December 16, 2025 16th Term, 20th Meeting	Proposal on partial amendments to the "Regulations Governing the Accrual and Distribution of Year-End Bonuses." Company's response to the independent directors' comments: None. (Independent Director Shu-Fen, Liu acted as Chairman) Resolution: Except for Chairman Cheng-Chuan Chang, who recused himself from deliberation and voting due to a conflict of interest, all other attending directors approved the proposal without objection.	✓	None
	Proposal for the adoption of the "Regulations Governing the Allocation and Distribution of Directors' and Employees' Remuneration," in order to implement the principle of linking remuneration to performance and to establish clear mechanisms for the allocation and distribution of directors' and employees' remuneration. Company's response to the independent directors' comments: None. (Independent Director Shu-Fen, Liu acted as Chairman) Resolution: Except for the institutional directors representing O-Bank (Cheng-Chuan Chang, Chih-Yu Hsiao, and Chih-Yuan Hsu), Mingshan Investment (Yi-Ru Lo), and Ho-Chu Investment (Si-Tsong Cheng and Fan-Shuo, Tseng), who recused themselves from deliberation and voting due to conflicts of interest related to the entities they represent, all other attending directors approved the proposal without objection.	✓	None

Board of Directors Meeting Date / Session	Proposal Content and Handling	Matters Under Article 14-3 of the Securities and Exchange Act	Objections or Reservations from Independent Directors
January 27, 2026 16th Term, 21st Meeting	Proposal on the performance evaluation of the President for 2025. Company's response to the independent directors' comments: None. (Recusal of the President and attending executives) Resolution: Approved unanimously by all attending directors.	✓	None
	Proposal on the performance bonus distribution for managerial personnel at or above the managerial level for 2025. Company's response to the independent directors' comments: None. (Recusal of the President and attending executives) (Independent Director Shu-Fen, Liu acted as Chairman) Resolution: Except for Chairman Cheng-Chuan Chang, who recused himself from deliberation and voting due to a conflict of interest, all other attending directors approved the proposal without objection.	✓	None
	Proposal for setting an aggregate position limit of NT$4 billion for 2026 in negotiable certificates of deposit and financial bonds issued by O-Bank Co., Ltd., as well as interbank lending and deposit transactions, in line with business planning. Company's response to the independent directors' comments: None. (Independent Director Chung-Ming Kuo acted as Chairman) Resolution: Following supplementary information and explanations on Fitch credit rating reports for Fixed Income Products Department, except for the institutional directors representing O-Bank Co., Ltd. (Cheng-Chuan Chang, Chih-Yu Hsiao, and Chih-Yuan Hsu) and Director Yi-Ru Lo (a relative within the second degree of kinship of Chairman Tina Y Lo of O-Bank Co., Ltd.), who recused themselves from deliberation and voting due to conflicts of interest, all other attending directors approved the proposal as proposed.	✓	None
February 26, 2026 16th Term, 22nd Meeting	Proposal to continue engaging Deloitte & Touche for the Company's financial and tax audit and attestation services for 2026. Company's response to the independent directors' comments: None. Resolution: Approved unanimously by all attending directors.	✓	None
	Proposal on the distribution of directors' remuneration for 2025. Company's response to the independent directors' comments: None. (Independent Director Shu-Fen, Liu acted as Chairman) Resolution: Except for the institutional directors representing O-Bank (Cheng-Chuan Chang, Chih-Yu Hsiao, and Chih-Yuan Hsu), Mingshan Investment (Yi-Ru Lo), and Ho-Chu Investment (Si-Tsong Cheng and Fan-Shuo, Tseng), who recused themselves from deliberation and voting due to conflicts of interest related to the entities they represent, all other attending directors approved the proposal without objection.	✓	None
	Proposal on the distribution of employee compensation for 2025. Company's response to the independent directors' comments: None. (Recusal of the President and attending executives) Resolution: Approved unanimously by all attending directors.	✓	None

III. Implementation Status of Board Performance Evaluation: See the table below.

Appraisal cycle	Period of assessment	Scope of assessment	Method of assessment	Contents of assessment	Independence of external agencies
Once per year	January 1, 2025 – December 31, 2025	Performance evaluation of the Board of Directors as a whole, individual directors, and functional committees (including the Audit Committee and the Remuneration Committee).	Self-evaluations conducted through internal online questionnaires by the Board of Directors, individual directors, and functional committees.	(1). Board performance evaluation includes the following five aspects: Participation in the Company's operations; Quality of Board decision-making; Board composition and structure; Director nomination and continuing education; Internal control.(2). Individual director performance evaluation includes the following six aspects: Understanding of the Company's goals and missions; Awareness of directors' responsibilities; Participation in the Company's operations; Management of internal relationships and communication; Professional expertise and continuing education; Internal control.(3). Functional committee performance evaluation includes the following five aspects: Participation in the Company's operations; Awareness of functional committee responsibilities; Quality of decision-making of functional committees; Composition and member selection of functional committees; Internal control. Internal evaluation results for 2025: Board performance evaluation: Scores for each aspect ranged from 4.83 to 4.97, with an average score of 4.91. Individual director performance evaluation: Scores for each aspect ranged from 4.78 to 5.00, with an average score of 4.96. Audit Committee performance evaluation: Scores for each aspect ranged from 4.94 to 5.00, with an average score of 4.99. Remuneration Committee performance evaluation: Scores for each aspect ranged from 4.89 to 5.00, with an average score of 4.98. The overall average score of this performance evaluation was 4.96 (on a scale of 1 to 5), indicating excellent performance. The results were approved at the 22nd meeting of the 16th Board of Directors on February 26, 2026. Overall, the Board's performance aligns with the principles of sound corporate governance.	Not applicable
External evaluation conducted once every three years by an external independent professional institution or a team of external experts and scholars.	January 1, 2025 – December 31, 2025	Performance evaluation of the Board of Directors and functional committees.	In October 2025, the Company engaged the Taiwan Investor Relations Institute, an external independent professional institution, to conduct the evaluation through a review of the Company's internal regulations, distribution of paper-based questionnaires, and on-site interviews.	The Taiwan Investor Relations Institute comprises professionals with expertise in investor relations, corporate governance, financial accounting, capital markets, and law. Its members possess experience in board performance evaluation, corporate governance system design, and capital market practices, enabling them to provide professional opinions from an objective and independent perspective. The evaluation of Board effectiveness conducted by the Institute covered five key aspects: Board composition and professional development, quality of Board decision-making, effectiveness of Board operations, internal control and risk management, and the Board's involvement in corporate social responsibility. The external evaluation results for 2025 show an average score of 4.91 (on a scale of 1 to 5). The evaluation of functional committees (Audit Committee and Remuneration Committee) also covered five key aspects: participation in the Company's operations, awareness of committee responsibilities, quality of decision-making, committee composition and member selection, and internal control. The external evaluation results for functional committees in 2025 show an average score of 4.99 (on a scale of 1 to 5). Overall, the results indicate that both the Board of Directors and the functional committees operate effectively and are aligned with the principles of sound corporate governance. Recommendations and Future Improvement Plans:	The evaluation report was completed by three corporate governance experts who signed independence declarations, and was conducted in an objective and impartial manner.
Key Recommendation	Improvement Plan
Establish a Board-level Nomination Committee	The Company will, in light of corporate governance developments and the operational needs of the Board, prudently assess the feasibility of establishing a Board-level Nomination Committee in order to further enhance corporate governance.

IV. The objectives for strengthening the functions of the Board of Directors during the current and most recent fiscal years (such as the establishment of the Audit Committee and enhancement of information transparency) and the evaluation of their implementation are provided in the Company's Annual Report under "III. Status of Corporate Governance," specifically: (II) Key Annual Activities and Operational Status of the Audit Committee (Pages 28-31) and (V) Composition, Duties, and Operational Status of the Remuneration Committee (Pages 38-41).

II. Annual highlights and operations of Audit Committee

(I) Profile of Audit Committee members:

Record date: March 24, 2026

Qualification		Professional qualifications and experience
Capacity Name
Independent Director (Convener)	Chung-Ming Kuo	Nationally qualified as CPA, possesses accounting experience or experience necessary to the Company’s operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act.
• Served as deputy director of PwC Taiwan for 2 years
• Served as Managing Accountant of the high-asset family business inheritance consulting service of PwC Taiwan for 11 years	Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence.
Independent Director	Horng-Dar Lin	Nationally qualified as attorney in law, possesses legal experience or experience necessary to the Company’s operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act.
• Practicing attorney in law at Winston & Strawn LLP for 3 years;
• Served as a judge of the Taipei District Court in Taiwan for 5 years	Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence.
Independent Director	Shu-Fen, Liu	Nationally qualified as attorney in law, possesses legal experience or experience necessary to the Company’s operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act.
• Served as Chief Compliance Officer, Legal & Compliance Division of O-Bank for 4 years
• Served as Legal Affairs and Compliance Officer of Industrial Bank Taiwan for 18 years	Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence.

(II) Key Annual Review Items:

Review of the internal control system and related policies	Evaluation of the effectiveness of the internal control system
Review of the annual audit plan	Risk management of the Company
Review of material acquisitions or disposals of assets	Review of matters involving directors’ conflicts of interest
Review of significant asset or derivatives transactions	Review of the raising, issuance, or private placement of equity securities
Review of the appointment, dismissal, or remuneration of the certified public accountants	Review of the appointment or dismissal of the head of finance, accounting, or internal audit
Review of the annual and semi-annual financial reports	Review of the implementation of the regulatory compliance system

(III) The Audit Committee convened 11 meetings (A) during the most recent fiscal year. The attendance of independent directors is as follows:

Record date: March 24, 2026

Title	Name	Attendance in Person (B)	Attendance Rate (%) [B/A] (Note 1 & Note 2)
Independent Director	Chung-Ming Kuo	11	100%
Independent Director	Horng-Dar Lin	11	100%
Independent Director	Shu-Fen, Liu	11	100%

Note 1: If an independent director resigns before the end of the fiscal year, the resignation date shall be specified in the Remarks column. The attendance rate (%) shall be calculated based on the number of Audit Committee meetings held and the number of meetings attended in person during the director's tenure.
Note 2: If there is a change of independent directors before the end of the fiscal year, both outgoing and incoming independent directors shall be disclosed. The Remarks column shall indicate whether the director is outgoing, newly appointed, or re-elected, along with the date of such change. The attendance rate (%) shall be calculated based on the number of Audit Committee meetings held and the number of meetings attended in person during the director's tenure.

Other matters to be disclosed:

I. Where any of the following circumstances occurs in the operation of the Audit Committee, the Company shall disclose the meeting date and session, proposal content, any dissenting or qualified opinions or material recommendations of the independent directors, the resolutions of the Audit Committee, and the Company's response to such opinions:

(I) Matters specified in Article 14-5 of the Securities and Exchange Act:

Board of Directors Meeting Date	Session	Proposal Contents
February 25, 2025	16th Term, 10th Meeting	February 21, 2025, 5th Term, 9th Meeting
1. Report on the implementation status of anti-money laundering and counter-terrorism financing measures for the period from July 1 to December 31, 2024, submitted for review.
2. Report on the Company's compliance system implementation for the second half of 2024, with results indicating compliance with applicable laws and regulations, submitted for review.
3. Summary report on internal audit findings for October to December 2024 and follow-up improvements on findings from external inspections, submitted for review.
4. Report on the results of the Central Bank's special inspection conducted in November 2024 regarding land purchases, unsold housing units, and corporate housing loan guarantees, together with the status of corrective actions, submitted for review.
5. The Company's 2024 financial statements, submitted for approval.
6. Proposed amendments to certain provisions of the Company's “Audit Committee Charter,” submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
March 25, 2025	16th Term, 11th Meeting	March 21, 2025, 5th Term, 10th Meeting
1. AML/CFT internal control system statements and submission for assurance review, submitted for approval.
2. Disclosure of AML/CFT internal control system statement, submitted for approval.
3. Issuance of internal control system statement for 2024, submitted for approval.
4. Engagement of Deloitte & Touche for 2025 audit services, submitted for approval.
5. 2024 annual business report, submitted for approval.
6. Earnings distribution proposal for 2024, submitted for approval.
7. Proposed amendments to the Articles of Incorporation, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.

Board of Directors Meeting Date	Session	Proposal Contents
April 30, 2025	16th Term, 12th Meeting	April 28, 2025, 5th Term, 11th Meeting
1. Proposed amendments to interbank lending procedures, submitted for approval.
2. Q1 2025 financial statements, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
June 17, 2025	16th Term, 14th Meeting	June 16, 2025, 5th Term, 12th Meeting
1. Internal audit findings (Q1 2025) and follow-up improvements, submitted for review.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
July 15, 2025	16th Term, 15th Meeting	July 14, 2025, 5th Term, 13th Meeting
1. Proposed amendments to bond counterparty qualification guidelines, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
August 19, 2025	16th Term, 16th Meeting	August 18, 2025, 5th Term, 14th Meeting
1. Internal/external inspection follow-up report (Q2 2025), submitted for review.
2. Compliance system review report (H1 2025), submitted for review.
3. AML/CFT implementation report (H1 2025), submitted for review.
4. Q2 2025 financial statements, submitted for approval.
5. Allocation of retained earnings adjustments, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
October 31, 2025	16th Term, 18th Meeting	October 28, 2025, 5th Term, 15th Meeting
1. Q3 2025 financial statements, submitted for approval.
2. Engagement for AML/CFT audit project, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
December 16, 2025	16th Term, 20th Meeting	December 12, 2025, 5th Term, 16th Meeting
1. AML/CFT plan for 2026, submitted for review.
2. Annual review of AML/CFT SOP, submitted for review.
3. Internal/external inspection follow-up (Q3 2025), submitted for review.
4. Amendments to foreign bond procedures, submitted for approval.
5. Amendments to sustainability information management rules, submitted for approval.
6. Internal audit plan for 2026, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
January 27, 2026	16th Term, 21st Meeting	January 21, 2026, 5th Term, 17th Meeting
1. FSC inspection report and improvement status, submitted for review.
2. Investment limit proposal (NT$4 billion), submitted for approval.
3. Amendments to underwriting procedures, submitted for approval.
4. Amendments to equity investment management rules, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.
February 26, 2026	16th Term, 22nd Meeting	February 24, 2026, 5th Term, 18th Meeting
1. Internal/external inspection follow-up (Q4 2025), submitted for review.
2. AML/CFT implementation report (H2 2025), submitted for review.
3. Compliance system review (H2 2025), submitted for review.
4. 2025 financial statements, submitted for approval.
5. Engagement of Deloitte & Touche for 2026 audit services, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.

Board of Directors Meeting Date	Session	Proposal Contents	Audit Committee Resolutions	Company's Response to Audit Committee Opinions
March 24, 2026	16th Term, 23rd Meeting	March 23, 2026, 5th Term, 19th Meeting 1. Follow-up report on FSC inspection improvements, submitted for review. 2. Internal control system statement for 2025, submitted for approval. 3. AML/CFT internal control statements and assurance basis, submitted for approval. 4. AML/CFT disclosure, submitted for approval. 5. 2025 annual business report, submitted for approval. 6. Amendments to Board meeting rules, submitted for approval. 7. Amendments to ethical conduct guidelines, submitted for approval. 8. Amendments to shareholders meeting rules, submitted for approval.	All attending committee members approved or acknowledged the matters without objection.	No additional opinions or material recommendations were raised.

(II) Other than the aforementioned matters, resolutions not approved by the Audit Committee but approved by more than two-thirds of all directors: None
II. Disclosure of independent directors' recusal from voting on conflict-of-interest matters, including the directors' names, proposal content, reasons for recusal, and voting participation: None
III. Communication between Independent Directors, the Chief Internal Auditor, and the Certified Public Accountants (CPAs): The Company's Audit Committee is composed entirely of independent directors. The Internal Audit Department submits various reports (including routine audit reports and special audit reports) to the Audit Committee on a monthly basis, in accordance with applicable regulations, for review by the independent directors. The Chief Internal Auditor presents these reports item by item and subsequently provides a summary report to the Board of Directors. The CPAs meet with the Audit Committee on a regular basis, typically after the second-quarter and annual financial statement audits, to report on audit results and key audit matters to the independent directors. In addition, the independent directors meet with the CPAs at least once annually, without the presence of other directors or management, to engage in in-depth discussions regarding audit planning, scope, and key focus areas of the financial statements. Overall, communication among the independent directors, the Chief Internal Auditor, and the CPAs is effective.

Date	Communication Method	Participants	Subject Matter	Outcome
February 21, 2025	Audit Committee Meeting	1. Independent Directors 2. External Auditors (CPAs) 3. Relevant attending management	Audit results and key audit matters of the 2024 annual financial statements	Actions were taken in accordance with the recommendations.
March 25, 2025	Internal Control Deficiency Meeting	1. Directors and Independent Directors 2. Chief Internal Auditor and Internal Audit personnel	Internal control deficiencies and follow-up improvements for the second half of 2024	All attending directors approved, without objection, to submit the meeting minutes to the next Board meeting.
August 18, 2025	Audit Committee Meeting	1. Independent Directors 2. External Auditors (CPAs) 3. Relevant attending management	Audit results and key audit matters of the Q2 2025 financial statements	Actions were taken in accordance with the recommendations.
September 23, 2025	Internal Control Deficiency Meeting	1. Directors and Independent Directors 2. Chief Internal Auditor and Internal Audit personnel	Internal control deficiencies and follow-up improvements for the first half of 2025	All attending directors approved, without objection, to submit the meeting minutes to the next Board meeting.
December 15, 2025	Online Meeting	1. Independent Directors 2. External Auditors (CPAs)	Audit planning, timeline, and key audit matters for the 2025 annual financial statements	Actions were taken in accordance with the recommendations.
February 26, 2026	Audit Committee Meeting	1. Independent Directors 2. External Auditors (CPAs) 3. Relevant attending management	Audit results and key audit matters of the 2025 annual financial statements	Actions were taken in accordance with the recommendations.
March 24, 2026	Internal Control Deficiency Meeting	1. Directors and Independent Directors 2. Chief Internal Auditor and Internal Audit personnel	Internal control deficiencies and follow-up improvements for the second half of 2025	All attending directors approved, without objection, to submit the meeting minutes to the next Board meeting.

III. Items to be disclosed in accordance with the Corporate Governance Best Practice Principles for Bills Finance Companies

Matters requiring mandatory disclosure, including those related to the Company’s financial and business operations, insider shareholdings, and corporate governance, are disclosed on the Company’s website (http://www.cbf.com.tw) in accordance with applicable regulations.

IV. Status of Corporate Governance Implementation and Deviations from the Corporate Governance Best Practice Principles for Bills Finance Companies, along with Explanations

Assessment Item	Implementation Status
	Yes	No	Summary
I. Shareholding Structure and Shareholders’ Rights of Bills Finance Companies
(I) Has the bills finance company established internal operating procedures to handle shareholder recommendations, doubts, disputes and litigations, and implemented them in accordance with the procedures?
(II) Whether the Company controls a register of major shareholders who own a relatively high percentage of shares and have controlling power, and of the persons with ultimate control over those major shareholders?
(III) Has the bills finance company built and implemented a risk management system and a firewall between itself and its affiliates?	☑		(I) The Company’s website features a spokesperson, an investor relations section, and a “Contact Us” email address, allowing shareholders to express their opinions via telephone, email, and other means. To safeguard shareholders’ rights and interests, the Company has established its “Corporate Governance Best Practice Principles” and designated dedicated personnel from the Management Department to handle shareholders’ suggestions, inquiries, disputes, and litigation matters, which are processed in accordance with the prescribed procedures.
(II) The Company has designated personnel to handle shareholder-related affairs. The shareholding status of major shareholders is reported on a monthly basis in accordance with applicable regulations. In addition, during each book closure period, the shareholder register is verified to ensure consistency, thereby enabling the Company to monitor the shareholding status of major shareholders and identify their ultimate beneficial owners.
(III) All credit and non-credit transactions between the Company and its affiliated enterprises are conducted in accordance with the Act Governing Bills Finance Business, the Banking Act, and other applicable laws and regulations. Relevant operating procedures are established and implemented by the respective departments for control purposes.	No deviations.
II. Composition and responsibilities of Board of Directors
(I) Have a diversity policy and specific management objectives been adopted for the board?
(II) In addition to the Remuneration Committee and the Audit Committee established in accordance with law, has the bills finance company voluntarily set up other functional committees?	☑		(I) The overall competencies required of the Board of Directors have been clearly defined. Please refer to pages 21–27 for details on the Board diversity policy and its implementation.
(II) The Company has established an Audit Committee and a Remuneration Committee in accordance with applicable laws and regulations, each comprising three independent directors. Considering the Company’s current scale of operations and governance needs, no additional functional committees have been established at this stage. Going forward, the Company will prudently evaluate the feasibility of establishing other functional committees based on corporate governance developments and operational requirements, with a view to continuously enhancing corporate governance and improving the effectiveness of Board operations..	No deviation.

Assessment Item	Implementation Status
	Yes	No	Summary
(III) Whether a TWSE/TPEx listed bills finance company established its Regulations Governing Performance Appraisal on the Board of Directors and the methodology for appraisal and conducted such on an annual basis? Have the results of the performance appraisal been reported to the Board of Directors and used as a reference for individual director’s salary compensation and nomination for reappointment?			(III) In accordance with the “Directions for the Establishment and Exercise of Powers of the Board of Directors of Listed Companies,” the Company adopted its “Rules for Board Performance Evaluation” in February 2020, as approved by the Board of Directors. The Company conducts annual performance evaluations of the Board as a whole, individual directors, and functional committees, and engages external independent professional institutions or expert teams to conduct Board performance evaluations every three years. The results of the 2025 Board performance evaluation were approved by the 22nd meeting of the 16th term of the Board of Directors on February 26, 2026. For details, please refer to pages 27 under “Board Performance Evaluation.” The evaluation results serve as a reference for future director nominations and are also linked to the allocation of directors’ remuneration. Following Board acknowledgment, the evaluation results have been filed with the Market Observation Post System (MOPS), and a summary has been disclosed on the Company’s website and in the annual report
(IV) Does bills finance company regularly evaluate the independence and competency of the CPAs?			(IV) The Audit Committee regularly evaluates the independence and professional competence of the Company’s certified public accountants (CPAs) on an annual basis. The Committee obtains independence declarations issued in the name of the accounting firm in accordance with the “Code of Professional Ethics No. 10 – Integrity, Objectivity, and Independence” promulgated by the Accounting Research and Development Foundation (ARDF), as well as the Audit Quality Indicators (AQIs) report comprising 13 indicators provided by the accounting firm. These serve as a reference for reappointment decisions.
Results of Independence Evaluation:
1. The CPAs (including audit team members), their spouses, and dependents do not hold any material direct or indirect financial interests in the Company.
2. The CPAs (including audit team members), their spouses, and dependents have no business relationships with the Company, its directors, or management that may impair independence.
3. The CPAs (including audit team members), their spouses, and dependents do not serve as directors, managers, or hold positions with direct and significant influence over the audit engagement.
4. The CPAs (including audit team members) have no relationships with the Company’s directors or management as spouses, lineal relatives by blood, lineal relatives by marriage, or collateral relatives within the second degree of kinship.
5. The CPAs (including audit team members) have not accepted gifts or benefits of significant value from the Company, its directors, management, or major shareholders.
6. The CPAs (including audit team members) have implemented necessary independence and conflict-of-interest procedures, and no violations of independence or unresolved conflicts of interest were identified.

Assessment Item	Implementation Status	Deviations from the Corporate Governance Best Practice Principles for Bills Finance Companies and Explanations
Yes	No	Summary

Dimension 1: Professionalism
(1-1) Audit experience	Compliant
(1-2) Training hours	Compliant
(1-3) Turnover rate	Compliant
(1-4) Professional support	Compliant
Dimension 2: Quality Control
(2-1) Accountant work load	Compliant
(2-2) Audit engagement	Compliant
(2-3) EQCR review status	Compliant
(2-4) Quality support capabilities	Compliant
Dimension 3: Independence
(3-1) Non-audit services fee	Compliant
(3-2) Customer familiarity	Compliant
Dimension 4: Oversight
(4-1) External inspection deficiencies and components	Compliant
(4-2) Letter from the competent authority demanding remedy	Compliant
Dimension 5: Innovation
(5-1) Innovative planning or initiative	Compliant
III. Has the bills finance company allocated qualified and sufficient number of personnel and appointed a chief governance officer in charge of corporate governance affairs (including but not limited to furnishing information required for business execution by directors and supervisors, assisting directors and supervisors to comply with laws, handling matters relating to board meetings and shareholder meetings according to laws, recording minutes of board meetings and shareholder meetings, etc.)?	✓	The Company, taking into consideration its scale of operations, resolved at the Board of Directors meeting on February 26, 2019, to establish the position of Chief Governance Officer, which was formally implemented on March 1, 2019. This arrangement aims to safeguard shareholders' rights and interests and to strengthen the functions of the Board of Directors. The position is currently held concurrently by Yi-Chang Kang, Assistant Vice President of the Risk Management Department. Main Responsibilities of the Chief Governance Officer: 1. Handling matters relating to Board meetings and shareholders' meetings in accordance with applicable laws and regulations. 2. Preparing minutes of Board meetings and shareholders' meetings, and providing directors (including independent directors) with information necessary for the performance of their duties. 3. Assisting directors (including independent directors) in their onboarding and continuing education. 4. Assisting directors (including independent directors) in compliance with applicable laws and regulations. 5. Providing legal consultation on matters related to Board meetings and shareholders' meetings. 6. Handling investor relations matters and other matters as stipulated in the Company's Articles of Incorporation or contracts. The Company's corporate governance affairs are coordinated and overseen by the Chief Governance Officer, with support from three personnel in the Legal Affairs and Compliance Office and five personnel in the Management Department. In addition, a stock affairs agent (CTBC Bank Stock Agency Department) is engaged to assist with shareholder-related services, ensuring the smooth execution of relevant operations. Continuing Education of the Chief Governance Officer: In 2025, the Company completed the reporting of the status and continuing education hours of the Chief Governance Officer within the timeframe prescribed by the competent authority. The Chief Governance Officer, Yi-Chang Kang, completed a total of 12 hours of continuing education in 2025, in compliance with the regulatory requirement of at least 12 hours of annual training. For details, please refer to "Managers' Participation in Corporate Governance-Related Training in the Most Recent Year" on page 77.

Assessment Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Bills Finance Companies and Explanations
	Yes	No	Summary
IV. Has the bills finance company established communication channels with stakeholders (including but not limited to shareholders, employees, customers and suppliers, etc.) and a special section for stakeholders on the company's website, and responded appropriately to important corporate social responsibility issues that are of concern to stakeholders?	✓		In addition to establishing a comprehensive spokesperson and deputy spokesperson system, the Company has set up a “Stakeholder Section” on its website. This section covers stakeholder categories, key issues of concern, the Company's primary responsibilities, communication channels, and response mechanisms. A dedicated complaint mailbox is also provided, with designated personnel assigned to respond promptly. The Company's stakeholder communication for 2025 was reported to the 22nd meeting of the 16th Board of Directors on February 26, 2026:1. Shareholders/Investors – The annual general shareholders' meeting was held on June 13, 2025. Investor conferences were held on June 24 and November 26, 2025, for the first half and second half of the year, respectively.2. Customers – In addition to periodic visits by business units, the Company invited customers to participate in charitable activities, such as blood donation events, through promotional messages printed on account statements in 2025.3. Employees – Labor-management meetings were held in March, June, September, and December 2025. In addition, employee suggestion mailboxes were established to facilitate communication with employees.4. Suppliers – Communication is conducted through the Supplier Corporate Social Responsibility (CSR) Self-Assessment Questionnaire.5. Others – The Company published its 2024 Sustainability Report in both Chinese and English.6. No cases were reported through the anti-corruption hotline in 2025.	No deviation.
V. Information Disclosure(I) Has the bills finance company set up a website to disclose finance and business matters and corporate governance information?(II) Has the bills finance company adopted other means of information disclosure (such as setting up an English website, appointing dedicated personnel responsible for the collection and disclosure of Company information, implementing a spokesperson system, posting the Company's earnings calls on its website, etc.)?	✓		(I) The Company's website includes dedicated sections such as “Company Profile,” “Investor Information,” and “Corporate Governance,” which disclose information on the Company's business operations, financial information for the most recent three years, and corporate governance practices. These sections are maintained and updated regularly by designated personnel for reference by shareholders and the general public.(II) Other Methods of Information Disclosure:1. The Company has also established an English version of its official website.2. The Company has established a comprehensive spokesperson and deputy spokesperson system responsible for the centralized release of external information, which is disclosed in accordance with applicable regulations on the Market Observation Post System (MOPS) and the Company's website.3. The Company provides dedicated sections for investor conferences and related audiovisual materials.4. Each section of the Company's website is assigned to designated personnel responsible for information collection, as well as regular maintenance and updates.	No deviation.

Assessment Item	Implementation Status
	Yes	No	Summary
(III) Does the bills finance company publish and make official filing of annual financial report within the timeframe set forth in the Act Governing Bills Finance Business and the Securities and Exchange Act, and publish/file Q1, Q2 and Q3 financial reports along with the monthly business performance statements before the required due dates?			(III) Upon the close of each fiscal year, the Company prepares and publicly discloses its annual financial reports in accordance with the Act Governing Bills Finance Business and the Securities and Exchange Act, following approval by the Board of Directors and within the prescribed time limits.
Quarterly financial reports are likewise approved by the Board of Directors and disclosed and filed within the required deadlines. In addition, monthly revenue is disclosed on the Market Observation Post System (MOPS) in accordance with the deadlines prescribed by the competent authority.
VI. Other information enabling better understanding of the Company’s corporate governance (such as employee rights, employee care, investor relations, stakeholder interests, continuing education of directors and supervisors, attendance of directors and supervisors at Board of Directors meetings, implementation of risk management policies and risk measurement standards, implementation of customer protection policies, the bills finance company’s purchase of liability insurance for directors and supervisors, and so on):	☑		(I) Employee Rights: Employee rights are safeguarded in accordance with the Labor Standards Act and the Company’s Work Rules.
(II) Employee care: The Company has established an Employee Welfare Committee to administer employee benefits. Employees are covered by Labor Insurance, National Health Insurance, and group insurance. Occupational safety and health practices are implemented in accordance with relevant laws and regulations, and healthcare professionals are engaged to provide health protection services. In addition, annual employee health examinations are arranged.
(III) Investor relations: The Company has established an Investor Information section on its website to provide relevant information for investors. Investor conferences and annual general shareholders’ meetings are held each year to facilitate effective communication with investors.
(IV) Stakeholder rights: The Company ensures transparency of information and maintains effective communication channels. Employees, customers, and suppliers may communicate with the Company via telephone, written correspondence, or email.
(V) Continuing education of directors (including independent directors): All directors (including independent directors) complete at least 6 hours of continuing education annually in accordance with applicable regulations.
(VI) Attendance of directors (including independent directors) at Board meetings: All directors (including independent directors) attend Board meetings regularly in accordance with applicable regulations. For details, please refer to page 24 regarding attendance records.
(VII) Implementation of Risk Management Policies and Risk Measurement Standard: The Company complies with regulations prescribed by the competent authority to assess operational risks and establish risk limits for various business activities. Management is required to implement necessary measures to ensure operational soundness while balancing business performance. To ensure the effective implementation of risk management policies, the Company regularly convenes meetings such as the Business Review Committee, the Asset and Liability Management Committee (ALCO), and the Investment Review Committee. These meetings are conducted to review the effectiveness of risk control measures and to make timely adjustments where necessary.	No deviation.

Assessment Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Bills Finance Companies and Explanations
	Yes	No	Summary
			(VIII) Implementation of Consumer Protection and Customer Policies: The Company complies with the Financial Consumer Protection Act and its internal “Procedures for Handling Financial Consumer Disputes,” which set forth relevant requirements to be followed. In addition, the Company specifies its obligations in the “Master Agreement for Bills and Bonds with Repurchase Conditions,” under which consumers or customers may exercise their rights. A dedicated financial consumer complaint service channel is also available on the Company’s website to facilitate communication with consumers and customers.

(IX) Directors’ Liability Insurance: In accordance with applicable regulations, the Company procures directors’ liability insurance for all directors (including independent directors) on an annual basis, and such information is disclosed on the Market Observation Post System (MOPS). | |
| VII. Please describe the improvement status based on the most recent Corporate Governance Evaluation results released by the Corporate Governance Center of the Taiwan Stock Exchange, and specify the priority improvement actions and measures for any remaining areas requiring enhancement.

The Company ranked within the top 6–20% of listed companies in the 11th (2024) Corporate Governance Evaluation, reflecting its continuous efforts and recognized achievements in enhancing corporate governance.

Improvements in Corporate Governance in the Most Recent Year:
1. On March 25, 2025, the Board of Directors approved amendments to the Company’s Articles of Incorporation to stipulate that the remuneration allocated to entry-level employees shall not be less than a certain proportion of the total employee remuneration. This measure aims to strengthen the protection of compensation rights for grassroots employees. The amendment was subsequently approved at the shareholders’ meeting.
2. An employee satisfaction survey was conducted in 2025, achieving a participation rate of 90.38% and an overall satisfaction score of 8.93. Based on the survey results, the Company conducted analyses and formulated corresponding improvement measures to establish regular communication channels and feedback mechanisms, better understand employee needs, and continuously enhance internal management practices.
3. The Company has formulated specific measures to enhance corporate value, which were approved by the Board of Directors on November 18, 2025. Relevant information has been disclosed on the Market Observation Post System (MOPS) under the “Corporate Value Enhancement Plan” section, with a view to strengthening corporate governance and enhancing long-term corporate value.
4. The Company’s annual report discloses the principles and calculation methods for directors’ and managers’ remuneration. Such remuneration is determined in accordance with the Articles of Incorporation and the remuneration system, thereby enhancing information transparency.

Areas for Further Enhancement:
1. Climate-related disclosures in the annual report will be further strengthened to align with the four core elements—governance, strategy, risk management, and metrics and targets—and to cover the 11 recommended disclosure items.
2. The Company will further disclose its human rights due diligence process and the status of its implementation. | | | | |

V. Composition, Duties and Operations of the Remuneration Committee

(I) Profile of Remuneration Committee members

Record date: March 24, 2026

| Qualification
Capacity Name | | Professional qualifications and experience | Independence | Number of Other Public Companies in Which the Director Serves as a Remuneration Committee Member |
| --- | --- | --- | --- | --- |
| Independent Director (Convener) | Shu-Fen, Liu | Nationally qualified as attorney in law, possesses legal experience or experience necessary to the Company's operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act.
• Served as Chief Compliance Officer, Legal & Compliance Division of O-Bank for 4 years
• Served as Legal Affairs and Compliance Officer of Industrial Bank Taiwan for 18 years | Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence. | 0 |
| Independent Director | Chung-Ming Kuo | Nationally qualified as CPA, possesses accounting experience or experience necessary to the Company's operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act.
• Served as deputy director of PwC Taiwan for 2 years
• Served as Managing Accountant of the high-asset family business inheritance consulting service of PwC Taiwan for 11 years | Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence. | 3 |
| Independent Director | Horng-Dar Lin | Nationally qualified as attorney in law, possesses legal experience or experience necessary to the Company's operations, and not involved in the acts specified in subparagraphs of Article 30 of the Company Act.
• Practicing attorney in law at Winston & Strawn LLP for 3 years;
• Served as a judge of the Taipei District Court in Taiwan for 5 years | Presented statements compliant with those prescribed in Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies; the submitted interested party form and the past or current job experience fulfilled the criteria for independence. | 1 |

(II) Responsibilities and Duties

Members shall exercise the due care of a good administrator and faithfully perform the following functions, and shall submit their recommendations to the Board of Directors for discussion:

To establish and periodically review the performance evaluation and remuneration policies, systems, standards, and structures for directors and managerial officers;
To periodically evaluate and determine the remuneration of directors and managerial officers.

In performing the functions set forth in the preceding paragraph, the following principles shall be observed:

The performance evaluation and remuneration of directors and managerial officers shall be determined with reference to prevailing industry practices, and with due consideration to individual performance, the Company's operating performance, and the reasonableness of their linkage to future risks.
The remuneration structure shall not encourage directors or managerial officers to engage in activities that exceed the Company's risk appetite in pursuit of higher compensation.
The proportion of remuneration based on short-term performance for directors and senior managerial officers, as well as the timing of payment of variable compensation, shall be determined in consideration of industry characteristics and the nature of the Company's business.

(III) Information on the Operation of the Remuneration Committee

The Company's Remuneration Committee consists of three members.
The current term of office of the committee members is from June 14, 2024 to June 13, 2027. The Remuneration Committee convened eight meetings (A) in the most recent year. The qualifications and attendance records of the members are as follows:

Record date: March 24, 2026

Title	Name	Actual attendance (B)	Counts of presence by proxy	Actual attendance rate (%) (B/A) [Note]
Convener	Shu-Fen, Liu	8	0	100%
Member	Chung-Ming Kuo	8	0	100%
Member	Horng-Dar Lin	8	0	100%
Other items to be stated:
I. If the Board of Directors does not adopt or modifies the recommendations of the Remuneration Committee, the Company shall disclose the date and session of the Board meeting, the contents of the proposal, the Board’s resolution, and the Company’s response to the Remuneration Committee’s opinions (if the remuneration approved by the Board of Directors is more favorable than that proposed by the Remuneration Committee, the differences and the reasons therefor shall be specified): None.
II. If any member of the Remuneration Committee expresses a dissenting or qualified opinion on any resolution, as recorded or stated in writing, the Company shall disclose the date and session of the Remuneration Committee meeting, the contents of the proposal, the opinions of all members, and the Company’s response to such opinions: None.

Note:
(1) If any member of the Remuneration Committee resigns or leaves office before the end of the fiscal year, the date of resignation or departure shall be specified in the “Remarks” column. The actual attendance rate (%) shall be calculated based on the number of Remuneration Committee meetings held during the member’s term of office and the number of meetings actually attended by that member.
(2) If there is any re-election of Remuneration Committee members before the end of the fiscal year, both the outgoing and newly appointed members shall be listed. The “Remarks” column shall indicate whether the member is outgoing, newly appointed, or reappointed, along with the date of such re-election. The actual attendance rate (%) shall be calculated based on the number of Remuneration Committee meetings held during the member’s term of office and the number of meetings actually attended by that member.

Matters discussed, resolutions adopted, and the Company’s handling of members’ opinions are set forth below:

Remuneration Committee Meeting Date / Session	Proposal Content and Handling
January 17, 2025
6th Term, 3rd Meeting	Proposal on the performance bonus distribution for managerial personnel at or above the managerial level for 2024.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
March 21, 2025
6th Term, 4th Meeting	Proposal for the distribution of directors’ remuneration and employee compensation for 2024.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal on the scope of entry-level employees of the Company.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal on amendments to certain provisions of the Company’s Articles of Incorporation.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
April 28, 2025
6th Term, 5th Meeting	In response to departmental functional optimization, the Company conducted a review of managerial functions and human resource allocation. It is proposed that Mr. Yong-Chih Wang, Assistant Vice President, concurrently serve as Head of the Corporate Banking Department; Ms. Ya-Ling Yang, Assistant Vice President, be relieved from concurrently serving as Head of the Equity Products Department; and Mr. Jen-Chieh Chen, currently Head of the Corporate Banking Department, be reassigned as Head of the Equity Products Department. The monthly remuneration and benefits arrangements following the above personnel adjustments are hereby submitted for approval.
The Company’s handling of members’ opinions: None.
Resolution: Following deliberation, the welfare conditions of the affected personnel will remain unchanged. The monthly salary adjustments will be reviewed together with Proposal 7 and submitted to the Board of Directors for approval.
	Proposal on the distribution of directors’ remuneration for 2024.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal on the distribution of employee compensation for the President and managerial personnel at or above the department/branch head level for 2024.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Report on the remuneration policy for directors and senior managerial officers for 2024, as attached.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal on the remuneration evaluation report for directors and managerial officers for 2024, as attached.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal to adjust employee salaries by up to 3.2% with reference to industry practices, effective retroactively from April 1, 2025.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal on the adjustment of monthly remuneration for the President and managerial personnel at or above the department/branch head level, effective retroactively from April 1, 2025.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.

Remuneration Committee Meeting Date / Session	Proposal Content and Handling
June 16, 2025
6th Term, 6th Meeting	Proposal on the promotion and appointment of Ms. Ju-Ching Lin, Manager (Grade 10) of the Operations Department, to serve as Head of the Operations Department, effective July 14, 2025, and the associated monthly remuneration and benefits arrangements.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal on the payment of retirement benefits to Ms. Min-Mei Huang, Manager of the Operations Department, in accordance with Article 10 of the Company’s “Guidelines for Employee Retirement and Severance.”
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
December 15, 2025
6th Term, 7th Meeting	Proposal on partial amendments to the “Regulations Governing the Accrual and Distribution of Year-End Bonuses.”
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
	Proposal for the adoption of the “Regulations Governing the Allocation and Distribution of Directors’ and Employees’ Remuneration,” in order to implement the principle of linking remuneration to performance and to establish clear mechanisms for the allocation and distribution of directors’ and employees’ remuneration.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
January 21, 2026
6th Term, 8th Meeting	Proposal on the performance bonus distribution for managerial personnel at or above the managerial level for 2025.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
February 24, 2026
6th Term, 9th Meeting	Proposal on the distribution of directors’ remuneration for 2025.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
February 24, 2026
6th Term, 9th Meeting	Proposal on the distribution of employee compensation for 2025.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.
March 23, 2026
6th Term, 10th Meeting	Report on the remuneration policy for directors and senior managerial officers for 2025, as attached.
The Company’s handling of members’ opinions: None.
Resolution: All attending committee members approved the proposal without objection.

VI. Implementation of Sustainable Development and Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons Therefor

Scope of Assessment	Implementation status					Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary
I. Has the bills finance 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?	✓	The Company defines its risk assessment boundary as the Taipei head office and five branches. Based on the topics outlined in the Global Reporting Initiative (GRI) Standards, the Company collects stakeholders' concerns through questionnaire surveys and conducts a materiality analysis. In addition, senior executives are invited to assess the impact of material topics, and the level of risk impact associated with environmental, social, and governance (ESG) issues relevant to the Company's operations is calculated. By considering both the level of stakeholder concern and the impact of each issue, the Company identifies material topics across the economic, environmental, and social dimensions. A summary of the risk management measures is provided below. For further details, please refer to the Company's Sustainability Report.				No deviation.
		Material Issue	Material Topic	Risk assessment and Target setting	Implementation status
		Risk control	Risk Control	Risk assessment and control operations are conducted in accordance with the Company's internal policies and procedures.	In accordance with the annual budget targets set by business units, risk exposure is managed through risk limits and stop-loss mechanisms. The exposure status is regularly reported to senior management and the Board of Directors.
		Ethical Corporate Management	Anti-Corruption	To ensure the effective implementation of ethical management, the Company conducts internal audits and reports the status of ethical management implementation to the Board of Directors on an annual basis.	Compliance audits are conducted twice a year.
			Anti-Competitive Behavior		General self-assessments are conducted twice a year, and ethical management training programs are organized annually.
			Public Policy		Special audits are conducted multiple times each year.
		Corporate governance	Compliance with Environmental Protection Regulations	Compliance training is conducted semi-annually, and the results of compliance assessments are reported to the Board of Directors.	The results of compliance assessments are reported to the Board of Directors.
			Compliance with Socio-economic Laws and Regulations	Each unit conducts self-assessments of regulatory compliance twice a year. All results are reviewed by the Legal Affairs and Compliance Office, and an annual assessment report is issued to enable senior management to understand the compliance status of each unit.
		Sustainable Strategy	Sustainable Strategy	The Company reports the status of sustainable development implementation to the Board of Directors on an annual basis.	The Company reports its sustainability performance to the Board of Directors annually and promotes its core values and business philosophy through Sustainability Com-mittee meetings and online training programs.
				The Company reports the status of stakeholder engagement to the Board of Directors on an annual basis.	At least three hours of professional training related to ESG, green finance, and risk management are provided annually to credit personnel.
The Company conducts sustainability-related financial training on an annual basis.

Scope of Assessment	Implementation status						Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary
			Material Issue	Material Topic	Risk assessment and Target setting	Implementation status
			Operating performance	Economic Performance	The Company conducts monthly financial review and analysis.	Performance evaluation meetings are held on a regular basis.
						The Company reports its operating performance to the Board of Directors on a monthly basis.
			Information security and privacy protection	Customer Privacy	Customer credit files and documentation are managed through systems based on risk classification and customer-notified updates, with regular risk assessments conducted.	After customers provide personal data, they are required to sign a Personal Data Collection Notice and Consent Form, and their data is properly safeguarded by designated personnel in accordance with the specified scope of use.
					Information system risks are assessed through regular vulnerability scanning and penetration testing.	At the beginning of each year, an inventory and risk assessment of personal data for the previous year are conducted. The results are approved by the President, and an external CPA performs an annual personal data audit.
						The overall status of information security implementation is reported to the Board of Directors annually.
						Online information security awareness training (including sensitive data protection) is conducted for all employees twice a year.
II. Has the bills finance company established a governance framework for promoting sustainable development, and established an exclusively (or concurrently) dedicated unit to be in charge of promoting sustainable development? Has the board of directors authorized senior management to handle related matters under the supervision of the board?	✓		To fulfill its corporate social responsibility and promote economic, environmental, and social progress toward the goal of sustainable development, the Company's Board of Directors approved the "Corporate Social Responsibility Best Practice Principles" in 2015 and established a Corporate Social Responsibility Committee for implementation. In 2022, in line with regulatory amendments, the principles were renamed the "Sustainable Development Best Practice Principles," and the committee was renamed the "Sustainability Development Committee." Taking into consideration the Company's operational scale, the Committee is chaired by the President, and a Vice President or a designated committee member serves concurrently as the Director-General, as appointed by the Chair. The position is currently held by the Assistant Vice President of the Management Department. The Committee members consist of department heads from each unit and representatives from branch offices. In addition, a sustainability report preparation team and an executive secretary have been established. The Sustainability Development Committee is organized into five working groups based on business functions and responsibilities: Sustainable Finance, Corporate Governance, Employee Care, Environmental Sustainability, and Social Participation. The Committee convenes at least twice a year and reports the status of sustainable development implementation to the Board of Directors annually. The Committee is responsible for reviewing and approving the Company's annual sustainable development (ESG) objectives, overseeing or acknowledging their implementation, tracking and evaluating the effectiveness of implementation, reviewing and approving the preparation of the sustainability report, and handling other related matters. The 2025 sustainable development progress report of the Company was approved during the 22nd meeting of the 16th Board of Directors on February 26, 2026. Below is the relevant update on the implementation:				No deviation.

Scope of Assessment	Implementation status
	Yes	No	Summary
		1. Preparation of Sustainability Report
The Company’s 2024 Sustainability Reports (both Chinese and English versions) have been assured by Deloitte. The reports were disclosed on the Market Observation Post System and the Company’s external website in August and November 2025, respectively.
2. ESG Implementation Status
• Corporate Governance
(1) Corporate Governance Evaluation: According to the 2024 Corporate Governance Evaluation (11th Term) announced in April 2025, the Company’s ranking improved from the 21%-35% bracket to the 6%-20% bracket.
(2) The Company has adopted IFRS Sustainability Disclosure Standards (S1 & S2) to enhance information transparency and strengthen climate risk management, aligning with international sustainability governance standards.
(3) The Company has no record of regulatory sanctions or reputational damage, demonstrating sound compliance and governance practices.
• Environmental Sustainability
(1) In 2025, the Company completed the replacement of three official fuel vehicles that had reached the end of their service life with hybrid vehicles to reduce operational carbon emissions.
(2) The Company continues to maintain certification under the ISO 14001 Environmental Management System in 2025.
(3) In 2025, the Company’s renewable energy consumption reached 118,000 kWh, accounting for 20% of the total electricity consumption across all operating locations in Taiwan.
(4) In 2024, the Company obtained the BSI-issued ISO 14064 certification for its greenhouse gas inventory and verification management system for the first time (base year: 2023). The certification remained valid for both 2024 and 2025 (inventory years). The inventory scope covers Scope 1 and Scope 2 emissions for the Company (parent entity) and all operating locations in Taiwan, including the head office and branches in Kaohsiung, Tainan, Taichung, Taoyuan, and Banqiao. For Scope 3 emissions, the Company focuses on material categories identified, including Category 6 (business travel) and Category 7 (employee commuting). For further details, please refer to “Climate-related Information – Greenhouse Gas Inventory and Assurance for the Most Recent Two Years” on pageXX.
• Social Participation
The Company actively engages in various social participation and public welfare activities, including charitable donations, support for arts and culture, and employee wellness initiatives. Due to the wide range of activities, only representative activities are listed below. For further details, please refer to the Company’s Sustainability Report.
		Item	Period	Implementation Results
		Blood donation	February 13, 2025	A total of 19 employees participated, recruiting 140 registered donors. Among them, 121 successfully donated blood, resulting in a total of 182 units (45,500 cc) collected.
		Guanyinshan Trail Cleanup (Environmental Activity)	March 22, 2025	A total of 127 participants, including 80 employees and 47 family members, joined the activity, promoting physical and mental well-being while helping relieve work-related stress.
		“The Power of Love Starts with Me” Fundraising Campaign	April 15–30, 2025 (two weeks)	A total of NT$75,282 was raised, including NT$14,700 from a charity market. The funds were used to purchase essential supplies (rice, instant noodles, canned food) for the Hualien Family Support Center, including 200 packs of rice, 300 packs of noodles, 400 packs of instant noodles, and 690 cans of food.
		Employee Weight Loss Challenge	April 1–May 29, 2025 (two months)	A total of 28 participants achieved a combined weight loss of 89.6 kg and fat reduction of 48.6 kg.
		Dragon Boat Festival Procurement from Local Farmers	May 16–29, 2025	Purchased 118 boxes of lychees from Dashu District, Kaohsiung, totaling approximately NT$90,000, supporting local farmers.
		Charity Rice Donation Program	September 5, 2025	Purchased 1,000 catties (20 bags) of locally produced rice from Hualien and donated it to the Hualien Family Support Center to support disadvantaged families and local agriculture.
		Emergency Relief-Matai’an Creek Incident	October 17, 2025	Donated NT$100,000 to support disaster recovery and emergency needs of affected communities.

Scope of Assessment	Implementation status				Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary
			Item	Period	Implementation Results
			Disaster Relief Fundraising Campaign	September 23–October 31, 2023	Raised NTS72,800. Emergency supplies, including 20 shovels (NTS5,680), were provided in advance to support cleanup efforts.
			Charity Concert- Golden Music & Oldies	November 5, 2025	Purchased 10 tickets (NTS1,500 each) in support of the charity concert.
			After reviewing the report, the Board of Directors acknowledged the Company's implementation of sustainable development initiatives and raised no objections.
III. Environmental Issues(I) Whether the bills finance company establishes environmental policies suitable for its industrial characteristics?	✓		(I) The Company operates in the bills finance industry, with its business locations primarily situated in office buildings. Energy consumption mainly consists of electricity and paper usage. To implement environmental sustainability, the Company has established an appropriate environmental management system in accordance with the ISO 14001 Environmental Management System since 2023, under which energy use and resource consumption are continuously monitored and improved. Under this system, the Company regularly reviews and replaces outdated and energy-intensive equipment, actively promotes digitalization and paperless processes to reduce paper consumption, and implements energy-saving and carbon reduction measures in daily operations, including the management of electricity, water, and fuel usage. In terms of office procurement, priority is given to environmentally friendly and recycled products, such as paper towels made from recycled paper, to promote resource recycling, reduce the consumption of forest resources, and minimize environmental impact. The Company has continued to maintain third-party certification under ISO 14001 as of 2025, with the certificate valid from December 1, 2025 to December 12, 2026. Under the control and continuous improvement mechanisms of this system, the Company's total annual electricity consumption in 2025 decreased by 7.3% compared to the previous year, while paper usage at the head office decreased by 6.1%. These results demonstrate the effectiveness of the Company's energy-saving, carbon reduction, and resource management measures, as well as the sustainability and effectiveness of its environmental management system. In addition, the Company conducts annual greenhouse gas inventories in accordance with ISO 14064, and continuously tracks emission reduction performance. For further details, please refer to “Climate-related Information - (III) Greenhouse Gas Reduction Targets, Strategies, and Action Plans” on page 53-54, as well as the Company's environmental sustainability policies, measures, and implementation status on pages 79-80.(II) To further implement environmental sustainability, the Company has established a fundamental energy management plan aimed at improving energy efficiency and reducing energy consumption. The key measures are as follows:1. The Company conducts annual greenhouse gas inventories in accordance with ISO 14064. Through these inventories, the Company tracks energy and resource usage, sets carbon reduction and conservation targets, and strives to enhance energy efficiency and resource utilization. For carbon reduction targets, please refer to “Climate-related Information - (III) Greenhouse Gas Reduction Targets, Strategies, and Action Plans” on pages 53-54. For conservation targets, please refer to section (4) “Water Conservation and Waste Management Policies” below.2. All of the Company's operating locations are situated within office buildings. Based on internal assessments, the primary energy and resource consumption sources include electricity, fuel for official vehicles, and daily water usage by employees.3. The Company has implemented various energy efficiency measures and achieved the following results. In 2023, the Taipei head office initiated the replacement of lighting fixtures with energy-efficient equipment. In 2024, the Kaohsiung, Tainan, Taichung, and Taoyuan branches followed suit under the guidance of the head office, completing the replacement with energy-saving LED panel lighting. In addition, lights are turned off during lunch hours (from 12:30 p.m.) to enhance energy-saving effectiveness. In 2025, the Company completed the replacement of three official fuel vehicles that had reached the end of their service life with hybrid vehicles to reduce operational carbon emissions. In alignment with ESG environmental sustainability goals, the Company has evaluated and introduced renewable energy to reduce reliance on conventional energy sources. A phased target has been established to gradually increase the use of renewable energy, aiming to reach 50% usage by 2030. Renewable energy procurement commenced in August 2024. In 2025, total renewable energy consumption reached 118,000 kWh, accounting for 20% of total electricity consumption across all operating locations in Taiwan. A total of 118 renewable energy certificates were issued by the Taiwan Renewable Energy Certificate Center under the Bureau of Standards, Metrology and Inspection, Ministry of Economic Affairs, demonstrating the achievement of the Company's renewable energy usage target for 2025. In addition, the Company requires suppliers to comply with relevant environmental regulations and implements green procurement practices to reduce environmental impact. For water usage and waste management measures, please refer to section (4) “Water Conservation and Waste Management Policies” below.		No deviation.

Scope of Assessment	Implementation status
	Yes	No	Summary
(III) Does the bills finance company evaluate the potential risks and opportunities of climate change to the Company now and in the future, and take corresponding measures to respond to climate related issues?			Category	Item	2024(MJ)	2025(MJ)
			Direct Energy	Gasoline	Vehicle gasoline consumption	345,752
			Indirect Energy	Purchased Electricity (excluding renewable energy)	Electricity consumption	1,701,763
			Total non-renewable energy consumption		2,047,515	1,760,624
			Renewable energy consumption		306,000	424,800
			Total Energy Consumption		2,353,515	2,185,424
			(III) In accordance with the Financial Supervisory Commission (FSC) TCFD guidelines, the Company has disclosed climate-related risks and opportunities in its Sustainability Report since 2021, covering governance, strategy, risk management, and metrics and targets. In terms of governance, the Board of Directors serves as the highest authority responsible for overseeing climate-related risks and opportunities, while the Corporate Governance Working Group under the Sustainability Development Committee acts as the dedicated TCFD taskforce. With respect to strategy, the Company conducts questionnaire surveys across departments to identify climate-related risks. Risk management encompasses both physical risks and transition risks. Regarding metrics and targets, the Company performs annual off-site backup operations to mitigate disruptions caused by extreme weather events and ensure business continuity. In addition, since 2022, the Company has voluntarily conducted greenhouse gas inventories and implemented low-carbon operational measures. For further details, please refer to the Company's Sustainability Report. Climate change may give rise to physical risks, such as those caused by extreme weather events, as well as transition risks and opportunities arising from regulatory, technological, or market changes, all of which may have an impact on the Company's operations. A summary of impact categories and corresponding response measures is provided below:
			Impact category	Risks or Climate-related Risks or Opportunities	Response Measures
			Physical risk	Extreme weather disasters	The Company conducts annual off-site backup drills to address potential crises caused by extreme weather events and ensure business continuity
			Transition risk	Carbon emissions policies and regulations	Since 2023, the Company has conducted annual greenhouse gas inventories to facilitate the development of effective and feasible carbon reduction plans, and to comply with regulatory requirements of the Financial Supervisory Commission (FSC) for listed companies with paid-in capital of NTS10 billion or more to disclose carbon emissions. For detailed greenhouse gas inventory data, please refer to page 53.
			Sustainable development	Enhancement of ESG ratings	The Company implements energy-saving and carbon reduction measures to improve ESG ratings.
			Products and Services	Diversification of financial assets	In response to the development trend of low-carbon and renewable energy industries, the Company supports renewable energy, low-carbon, and environmentally friendly industries through financing, equity investment, and green bond-related businesses.
In August 2023, the Financial Supervisory Commission (FSC) announced the roadmap for alignment with IFRS Sustainability Disclosure Standards. To facilitate a smooth adoption of the relevant standards, the Company established an IFRS Sustainability Disclosure Standards task force in October 2024 and held its initial implementation planning meeting. In 2025, the Company continued to advance relevant analyses and planning, including the identification and assessment of sustainability-related risks and opportunities and their financial impacts, as well as the evaluation of material sustainability-related financial information, data collection, and adjustments to internal processes and systems. These efforts cover financial and non-financial reporting processes, information systems, supply chain management, internal controls, and operational activities across departments. Looking ahead, the Company plans to disclose climate-related risks and opportunities and corresponding response measures in its 2026 annual report in accordance with the core framework of IFRS S2, in order to comply with the IFRS Sustainability Disclosure Standards and relevant regulatory requirements effective in 2026. In addition, the Company intends to pilot a dedicated section on sustainability information. However, due to the early publication timeline of the annual report, details of the pilot disclosure will be presented in the Company's Sustainability Report.

Scope of Assessment	Implementation status				Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary
(IV) Does the bills finance company make statistics on greenhouse gas emissions, water consumption, and total weight of waste for the past two years, and formulate policies for greenhouse gas emissions reduction, water consumption reduction, or other waste management?			(IV) The Company's greenhouse gas inventory results, assurance status, reduction targets, and related policies are disclosed in "Climate-related Information - (II) Greenhouse Gas Inventory and Assurance for the Most Recent Two Years" and "(III) Greenhouse Gas Reduction Targets, Strategies, and Action Plans" on pages 53-54. The Company operates in the bills finance industry, with its business activities primarily conducted in office buildings. Waste generated mainly consists of daily office waste produced by employees, including general waste, paper, metals (iron and aluminum cans), plastics (PET bottles and plastic food containers), glass bottles, and batteries, all of which are classified as non-hazardous waste. Waste generated at the head office is centrally handled by the building management, which commissions qualified waste disposal contractors holding permits issued by the environmental protection authority to conduct waste collection and disposal. Although the Company's operations are office-based, it actively promotes circular economy practices through digitalization and resource reuse initiatives: (1) In coordination with the Taiwan Depository & Clearing Corporation, the Company has implemented the dematerialization of commercial paper and related processes, including financing commercial paper dematerialization (September 2017), electronic documentation for commercial paper issuance (October 2018), and digitalization of secondary market transactions for bills and bonds (December 2020), thereby reducing paper usage and environmental impact. (2) For information equipment such as computers and monitors that have reached their replacement cycle but remain functional, the Company prioritizes extending their usage life or donating them to charitable organizations, promoting resource reuse and reducing electronic waste. The water consumption and total weight of non-hazardous waste for the most recent two years are presented as follows:
			Item	2024	2025
			Water Consumption (m3)	2,395	1,929
			Water Intensity (m3/ NT$ million revenue)	1.07	0.65
			Non-hazardous Waste (metric tons)	0.2159	0.2177
			Non-hazardous Waste Intensity (metric tons / NT$ million revenue)	0.0000964	0.0000731
			Notes: 1. The data boundary covers the head office and five branches, including the office premises utilized, with a coverage rate of 100% for the inventory. 2. The Company has incorporated annual water consumption into its environmental management framework. Water usage is continuously monitored and recorded in accordance with established procedures, and monthly water bills are subject to verification during periodic audits under the ISO 14001 Environmental Management System conducted by an external certification body (U-Qual International Certification Services Co., Ltd.). The Company has maintained ISO 14001 certification continuously since 2023. 3. Non-hazardous waste is estimated based on the national average daily municipal solid waste generation per capita. 4. As the Company operates in the bills finance industry, waste generated mainly consists of routine office waste produced by employees, including general waste, paper, metals (iron and aluminum cans), plastics (PET bottles and plastic food containers), glass bottles, and batteries. No hazardous or toxic waste is generated. Waste at the head office is handled by qualified waste disposal contractors commissioned by the building management, holding permits issued by the environmental protection authority.
			The Company has established an environmental management system in accordance with the ISO 14001 to integrate and manage various environmental initiatives. Under this system, water-saving devices have been installed in pantries and restrooms to facilitate water conservation in daily use. In addition, to promote sustainable resource reuse, the Company regularly conducts internal awareness campaigns to encourage employees to implement waste sorting and recycling practices, including food waste separation, thereby reducing resource waste as well as carbon emissions generated from landfill and incineration, and ultimately minimizing environmental impact. For 2025, the Company set management targets to reduce water consumption and waste generation by 2% (base year: 2022). Following a review of implementation results at the Environmental Management Review Meeting held in October 2025, total annual water consumption decreased by 19.46% compared to the previous year (a reduction of 21% compared to the base year), achieving the established target. However, waste generation slightly increased by 0.83% compared to the previous year due to changes in office operations and daily practices. The Company will continue to review and strengthen related reduction measures. For further details on implementation, please refer to "Corporate Responsibility and Ethical Conduct - (III) Environmental Sustainability Policies, Measures, and Results" on pages 79-80, as part of the Company's ongoing commitment to environmental sustainability.

Scope of Assessment	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary
IV. Social Issues(I) Whether the Company establishes any human rights protection policy in accordance with the relevant laws and international human rights conventions?	✓		(I) The Company upholds the corporate philosophy of gratitude, prudence, and continuous improvement, and is committed to fulfilling its corporate social responsibility. The Company places great importance on the protection of employee rights and human rights, and aligns its practices with internationally recognized human rights standards, including the Universal Declaration of Human Rights, the United Nations Global Compact, the UN Guiding Principles on Business and Human Rights, and the ILO Declaration on Fundamental Principles and Rights at Work. The Company complies with applicable labor laws and regulations, including the Labor Standards Act, Employment Service Act, Gender Equality in Employment Act, Sexual Harassment Prevention Act, and Occupational Safety and Health Act, to establish a safe and healthy workplace and foster a diverse, inclusive, equal, and harassment-free working environment. Discrimination in any form based on gender, age, marital status, religion, political affiliation, race, or socioeconomic status is strictly prohibited. The Company enforces reasonable working hours, prohibits forced labor and child labor, respects employees' freedom of association, protects the privacy of employees, customers, and stakeholders, and provides multiple and secure grievance channels to safeguard employees' legitimate rights and interests. The Human Resources Unit, under the supervision of the President, serves as the responsible unit for planning, promoting, and implementing human rights management initiatives. A systematic management framework has been established to ensure the effective implementation of human rights policies. For details on the Company's human rights due diligence, please refer to the Company's Sustainability Report. The scope of implementation covers human rights protection, workplace environment and personal safety, occupational health, employee welfare, and retirement systems, with the aim of creating a respectful, safe, and friendly working environment. The Company's human rights management measures are as follows: 1. The Company ensures that recruitment, compensation and benefits, training, performance evaluation, and promotion opportunities are free from discrimination, harassment, or unfair treatment based on nationality, race, age, gender, marital status, gender identity, disability, pregnancy, religion, political affiliation, or any other status. Employees may raise concerns through the Employee Suggestion Mailbox if their legitimate rights are infringed or improperly treated. 2. The Company complies with corporate social responsibility and ethical standards and strictly prohibits child labor. As of the end of 2025, the Company had 158 employees, none of whom were child laborers. 3. The Company regulates reasonable working hours and clearly stipulates working hours, overtime, and leave policies to prevent excessive working hours. Any adjustment or extension of working hours is subject to employee consent, and employee attendance is regularly monitored and managed. 4. The Company respects employees' freedom of employment and career mobility and strictly prohibits any form of forced or compulsory labor. 5. The Company has established a Sexual Harassment Complaint Handling Committee to provide a workplace free from sexual harassment and to prevent such incidents. 6. To ensure that new employees understand their rights, the Company provides orientation training within one month of onboarding. The training covers topics including sexual harassment prevention, personnel management regulations, employment guidelines, employee service rules, compensation policies, overtime management, leave policies, retirement and pension policies, workplace regulations, relevant financial laws and regulations, and the protection of personal and customer data. 7. The Company established a labor-management meeting in accordance with relevant regulations on September 17, 2015, with five representatives each from labor and management. The meeting is held quarterly (four times in 2025) to strengthen labor-management relations, promote cooperation, and discuss matters such as working conditions, employee welfare, and operational efficiency. In response to amendments to the Gender Equality in Employment Act in 2022, the Company revised its internal leave policies to extend maternity leave and paternity-related leave to seven days, providing greater support for working parents and fostering a family-friendly workplace. In 2025, a total of three employees applied for such leave. The Company also offers flexible working arrangements to support work-life balance. In 2025, one employee adjusted their working hours under this policy. Additionally, employees are provided with a 1.5-hour lunch break to support their physical and mental well-being. To strengthen human rights awareness (including but not limited to sexual harassment prevention and privacy protection), the Company conducted a one-hour online training session on sexual harassment prevention for all employees in June 2025 to eliminate workplace discrimination and bias. The Company has established supplier social responsibility management guidelines. Suppliers are required to complete a “Supplier Corporate Social Responsibility Self-Assessment Form” and sign a “Supplier Social Responsibility Commitment Letter,” both of which include human rights clauses to ensure the implementation of human rights governance throughout the supply chain. In 2025, the Company had no incidents of human rights violations.	No deviation.

Scope of Assessment	Implementation status
	Yes	No	Summary
(II) Has the bills finance 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?			(II) The Company has established internal regulations, including the “Personnel Management Regulations” and the “Guidelines for Provision and Distribution of Year-end Bonuses,” to clearly define policies on salaries, bonuses, benefits, and leave. In addition, statutory leave entitlements are provided in accordance with applicable laws to safeguard employees’ rights and interests. The Company places importance on the health and well-being of female employees during pregnancy and provides a daily milk subsidy to support nutritional needs and promote physical and mental health, demonstrating care for employees and fostering a friendly and supportive workplace environment. With respect to the compensation system, all employees are entitled to equal remuneration and promotion opportunities regardless of gender. To encourage employees to realize their full potential and pursue excellence, year-end bonuses and employee remuneration are calculated and distributed at the end of each fiscal year based on employees’ attendance, performance evaluations, and the Company’s return on equity (ROE). For further details, please refer to “Labor-Management Relations – (I) Employee Welfare Measures” on pages 86-87.
(III) Does the bills finance company provide employees with a safe and healthy working environment, and related education?			(III) The Company conducts fire safety training twice a year, selecting one day in each half of the year. In 2025, 20 and 24 employees participated in the first and second sessions, respectively, with each session lasting four hours and covering topics such as fire prevention, emergency response, and earthquake evacuation. Given the Company’s office-based operations, a one-hour online occupational safety and health training program is conducted annually to enhance employees’ safety awareness and self-protection capabilities. In addition, the Company regularly inspects fire safety equipment and engages professional cleaning service providers to carry out environmental cleaning and disinfection of office premises. To safeguard employee health, the Company organizes annual health examinations, incorporating screening items for chronic conditions such as hypertension, hyperglycemia, and hyperlipidemia into the standard check-up program. This enables employees to better understand their health status and take timely preventive or medical actions. In 2025, the health examination program was conducted over a four-month period, with a total of 71 employees participating. The Company also organizes employee health promotion activities on a periodic basis. For example, taking advantage of the post-holiday period following the Lunar New Year and the 228 Peace Memorial Day holiday, a weight management program was conducted from April to May 2025, combining health education and moderate exercise. A total of 28 employees participated, achieving a combined weight loss of 89.6 kg and fat reduction of 48.6 kg, contributing to the promotion of a healthy workplace. In addition, the Company organized employee participation in a charity road running event in April 2025, with 10 employees actively taking part during their holidays. Through such activities, the Company promotes a healthy lifestyle, enhances physical and mental well-being, and strengthens team cohesion. The Company complies with the requirements of the Occupational Safety and Health Act by providing on-site occupational health services through contracted medical professionals. In 2025, a total of 24 on-site service sessions were conducted. In addition, a one-on-one health consultation session with a specialist physician was arranged in the first half of the year to assist employees in addressing health-related concerns. Over the past three years, the Company has not experienced any occupational accidents, disabling injuries, or fire-related incidents involving employees. Accordingly, the frequency rate and severity rate of disabling injuries, as well as the number of fire-related casualties, were all zero.
(IV) Has the bills finance company established an effective career development training program for employees?			(IV) The Company places great importance on employee competency development and has established the “Guidelines for Job Rotation and Promotion.” Through an online learning platform, the Company assigns training programs based on employees’ competencies, including general training courses and mandatory courses required by laws and regulations. In 2025, all employees (including new hires), totaling 158 individuals, were required to complete at least 14.5 hours of online training in compliance with regulatory requirements. During the annual performance appraisal process, supervisors and employees jointly discuss and set individual development plans and goals to enhance employees’ career development capabilities.
(V) Does the bills finance company comply with the relevant laws and international standards with regards to customer health and safety, customer privacy, and marketing and labeling of products and services, and implement consumer protection and grievance policies?			(V) The Company complies with applicable regulations issued by the competent authority, the Bills Finance Association, and relevant international standards. Contractual terms clearly specify the Company’s obligations, enabling consumers to assert their rights accordingly. The Company has established a “Fair Customer Treatment Policy” and provides a dedicated “Stakeholders’ Section” on its official website, offering accessible communication and grievance channels for consumers. The available channels are as follows:•Customer Communication / Service Email: [email protected]•Whistleblowing Email for Ethical Conduct: [email protected]

Scope of Assessment	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary
(VI) Has the bills finance company formulated supplier management policies requiring suppliers to comply with relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights, and what is the status of their implementation?			(VI) To fulfill its commitment and responsibility in supplier management, and to work collaboratively with suppliers to uphold high ethical standards, respect labor and human rights, and achieve environmental sustainability goals, the Company established the “Supplier Management Policy” in September 2023 and revised it in March 2026 to incorporate requirements related to information security and privacy protection, thereby continuously strengthening its supplier management framework. The key implementation measures are as follows:
1. Negotiation Meetings – The Company communicates its corporate social responsibility (CSR) policies to suppliers during negotiation meetings.
2. Supplier Self-assessment – Suppliers are required to complete self-assessment questionnaires to identify any records of environmental or social non-compliance.
3. Declaration Signing – Qualified suppliers are required to sign a “Supplier Social Responsibility Commitment Letter” when entering into contracts.
4. Training and Promotion – The Company promotes sustainability awareness and disseminates knowledge related to sustainable development.
In 2025, the Company engaged a total of 17 suppliers in Taiwan. For suppliers with procurement amounts exceeding NTS200,000, the Company required them to sign and return the “Supplier Social Responsibility Commitment Letter,” under which suppliers are obligated to comply with relevant laws and regulations concerning environmental protection, labor conditions, occupational health and safety, labor and human rights, as well as information security and privacy protection. Through these measures, the Company actively requires suppliers to jointly fulfill corporate social responsibility. For further details on supplier due diligence practices, please refer to the Company’s Sustainability Report.
V. Has the bills finance company referred to international reporting standards or guidelines in its preparation of sustainability reports and other reports which disclose the bills finance company’s non-financial information? Has the aforementioned report been verified or guaranteed by a third party?	☑		The Company’s Sustainability Report is prepared in accordance with the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards), with reference to the Sustainability Accounting Standards Board (SASB) Standards and the “Regulations Governing the Preparation and Filing of Sustainability Reports by TWSE/TPEx Listed Companies” for the disclosure of industry-specific indicators for the financial services sector. The report is also aligned with the United Nations Sustainable Development Goals (SDGs). The Sustainability Report has been subject to a limited assurance engagement by Deloitte in accordance with Assurance Standard No. 3000, “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information,” issued by the Accounting Research and Development Foundation, Republic of China (Taiwan), which is developed with reference to the International Standard on Assurance Engagements (ISAE 3000). The assurance results confirm that the report complies with the GRI Standards and the aforementioned regulations. For the independent limited assurance report, please refer to the appendix of the Company’s Sustainability Report.	No deviation.
VI. If the Company has established its own Sustainable Development Best Practice Principles in accordance with the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies,” please specify any differences between the Company’s operations and such principles: No deviation.
VII. Other material information that may facilitate a better understanding of the Company’s implementation of sustainable development:
(I) The Company has published its first Sustainability Report since 2015 and has continued to do so for 11 consecutive years. The reports are disclosed in a timely manner on the Market Observation Post System and are also available in the “Corporate Sustainability” section of the Company’s website for public access.
(II) For additional information on the Company’s sustainable development initiatives, please refer to the “Corporate Sustainability” section of the Company’s website:https://www.chf.com.tw/np.asp?ctNode=604&mp=1.

VII. Climate-related information

(I) Implementation Status of Climate-related Information

Item	Implementation status
1. Describe how the board and the management oversee and govern climate-related risks and opportunities.	1. The Company's Board of Directors approved the "Corporate Social Responsibility Best Practice Principles" in 2015 and established a Corporate Social Responsibility Committee for implementation. In 2022, in line with regulatory amendments, the principles were renamed the "Sustainable Development Best Practice Principles," and the committee was renamed the "Sustainability Development Committee." The Committee is chaired by the President, with a Vice President or a designated member serving concurrently as the Director-General (currently the Assistant Vice President of the Management Department). Committee members consist of representatives from each department, supported by a sustainability report preparation team and an executive secretary. The Sustainability Development Committee is organized into five working groups: Sustainable Finance, Corporate Governance, Employee Care, Environmental Sustainability, and Social Participation. The Committee convenes at least twice a year and reports the implementation status of sustainable development to the Board of Directors at the end of each year. Climate-related risk identification and management measures are also disclosed in the Sustainability Report. In addition, in August 2023, the Financial Supervisory Commission (FSC) announced the roadmap for alignment with IFRS Sustainability Disclosure Standards. To facilitate adoption, the Company established an IFRS Sustainability Disclosure Standards task force in October 2024 and reports its implementation progress to the Board of Directors on a quarterly basis. Looking ahead, the Company plans to disclose climate-related risks and opportunities and corresponding response measures in its 2026 annual report in accordance with the core framework of IFRS S2, in order to comply with the IFRS Sustainability Disclosure Standards and related regulatory requirements effective in 2026. The Company also plans to pilot a dedicated sustainability information section. However, due to the early publication timeline of the annual report, relevant details are disclosed in the Company's Sustainability Report.
2. Describe how the identified climate risks and opportunities will affect the Company's business, strategy, and finances (in the short-, medium-, and long-term).	Risk Category	Risk Issues	Opportunity Issues
	Short-term	• Tightening regulatory requirements on climate-related risks in the financial industry (business operations)
• Tightening regulatory requirements on climate-related risks in the financial industry (operational management)
• Increase in raw material costs
• Increasing requirements for carbon emissions disclosure	• Enhancement of sustainability/ESG ratings
• Diversification of financial assets (e.g., green bonds and ESG-related investments)
• Reduction in water consumption and resource usage
	Medium-term	• Impacts of extreme weather events on operations (e.g., damage to facilities and operational disruptions)
• Impacts of extreme weather events on business activities (e.g., decline in collateral value and increased investment losses)
• Reputational damage due to negative perceptions of counterparties' industries
• Systemic risks to the financial sector arising from the decline of high climate-risk industries
• Tightening regulatory requirements on climate-related risks in the financial industry (business operations)
• Tightening regulatory requirements on climate-related risks in the financial industry (operational management)
• Increased operating costs due to climate-related risks (e.g., rising carbon prices or carbon taxes)
• Increased operating costs of investees and financing counterparties due to climate-related risks (e.g., rising carbon prices or carbon taxes)
• Increased carbon-related costs (e.g., carbon prices or carbon taxes) for suppliers
• Increased stakeholder concerns and negative feedback
• Litigation risks arising from non-compliance with regulations or insufficient disclosures	• Development of sustainable financial products in response to regulatory requirements to expand business opportunities
• Increased demand for products and services driven by strong corporate reputation
• Development of low-carbon digital services (e.g., paperless services)
• Adoption of energy-efficient equipment to improve energy efficiency and reduce operating costs
	Long-term	• Costs associated with the transition to low-carbon technologies
• Increase in average temperatures	• Generation of new revenue streams from emerging environmental markets and products
• Participation in renewable energy projects
• Relocation to more energy-efficient buildings

Item	Implementation status
3. Describe the financial impact of extreme climate events and transition actions.	3. To assess the financial impacts of climate change on the Company, several key impacts have been identified. Climate-related considerations have led to a narrowing of investment scope and stricter selection criteria, which may limit investment opportunities. In addition, both pre- and post-lending processes require increased time and effort to monitor changes in the operating conditions of borrowers, resulting in higher operational costs. Restrictions on financing activities in high climate-risk industries have become more stringent. Furthermore, tighter exposure management for credit assets and investment portfolios, along with stricter capital requirements for high climate-risk counterparties, may have an impact on the Company's capital adequacy ratio. In addition, increasingly stringent regulations on greenhouse gas reduction and energy efficiency may affect clients' environmental performance. Clients identified as having relatively higher environmental risks may adversely affect the Company through increased credit risk, reputational considerations, or business relationship adjustments.
4. Describe how the process of identification, assessment, and management of climate risks is integrated into the overall risk management system.	4. With reference to the Task Force on Climate-related Financial Disclosures framework and climate-related trend analyses for the financial industry, the Company has established a climate risk management mechanism led by the Corporate Governance Working Group under the Sustainability Development Committee. A total of 15 climate-related risk items and 10 opportunity items have been identified. Through a questionnaire-based approach, department heads across the Company assess the relevance of each issue to their respective business operations and evaluate potential impacts. Based on these assessments, the Company has established a company-wide list of high climate-risk industries. The Company further evaluates the associated financial impacts, formulates corresponding response strategies, and establishes ESG screening procedures, which are incorporated into the overall climate risk management policy.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and major financial impacts used should be explained.	5. To facilitate the adoption of climate scenario analysis, the Company has conducted analyses of potential additional losses arising from climate-related risks—including both physical and transition risks—under different stress scenarios, with respect to its lending and investment activities. For further details, please refer to the Company's Sustainability Report.
6. If a transition plan is in place to cope with climate-related risks, explain the plan content, and the indicators and goals used to identify and manage physical risks and transition risks.	6. In response to climate change, governments worldwide are expected to impose more stringent controls on greenhouse gas emissions and implement additional regulatory measures. To align with the global goal of achieving net-zero emissions by 2050, the Company has adopted an absolute approach to set short- to medium-term greenhouse gas (GHG) reduction targets for Scope 1 and Scope 2 emissions through 2030 (base year: 2022). For detailed reduction targets, please refer to “Climate-related Information – (III) Greenhouse Gas Reduction Targets, Strategies, and Action Plans” on pages 53-54. In addition, the Company has introduced renewable energy to reduce reliance on conventional energy sources and has established a phased target to progressively increase the use of renewable energy, aiming to reach 50% by 2030.
7. If internal carbon pricing is used as a planning tool, state the basis for setting the price.	7. To drive behavioral change and enhance energy efficiency, the Company established the “Internal Carbon Pricing Guidelines” in December 2024, with implementation commencing in 2025. The internal carbon pricing mechanism is progressively integrated into the Company's operational strategy and reflected in management reports as a reference for annual performance evaluation, with the long-term objective of achieving net-zero emissions by 2050. The pricing framework distinguishes between emission scopes. For Scope 1 and Scope 2 emissions, an implicit pricing approach is adopted to determine the internal carbon price. For Scope 3 emissions, the Company sets reference prices based on those of affiliated companies as well as domestic and international carbon pricing benchmarks. Both approaches are subject to annual review and adjustment, and the carbon pricing information for the following year is announced upon approval.
8. If climate-related goals are set, state the covered activities, scope of greenhouse gas emissions, the schedule timeline, and annual progress; if carbon offsets or renewable energy certificates (RECs) are used to achieve relevant goals, state the source and quantity of carbon credits or the quantity of renewable energy certificates (RECs).	8. In support of government policies on carbon reduction, the Company has adopted an absolute approach to establish short- to medium-term greenhouse gas (GHG) reduction targets for Scope 1 and Scope 2 emissions through 2030 (base year: 2022). For detailed reduction targets, please refer to “Climate-related Information – (III) Greenhouse Gas Reduction Targets, Strategies, and Action Plans” on pages 53-54. To achieve these reduction targets, the Company introduced renewable energy (green electricity) in 2024, with supply commencing in August. In 2025, total renewable energy consumption reached 118,000 kWh, accounting for 20% of the total electricity consumption across all operating locations in Taiwan. A total of 118 renewable energy certificates were issued by the Taiwan Renewable Energy Certificate Center (T-REC) under the Bureau of Standards, Metrology and Inspection, Ministry of Economic Affairs, demonstrating the achievement of the Company's renewable energy usage target for 2025.
9. Greenhouse gas inventory and assurance, and reduction goals, strategies, and concrete action plans.	9. Please refer to the attached tables for greenhouse gas inventory and assurance status.

(II) Greenhouse gas inventory and assurance in the last 2 years are as follows:

Year	Category (Note 2)	Total emissions (tons of CO2e) (Note 3)	Intensity (tons of CO2e/NTD million) (Note 4)	Validating institution	Description of validation status
2025	Scope 1 Direct emissions	52.5892	0.0177	British Standards Institution (BSI)	Assurance Standard: ISO 14064-3:2019
Assurance Opinion: Reasonable assurance with an unqualified opinion.
	Scope 2 Indirect emissions(LBA) (Note 5)	245.0978	0.0823
	Scope 2 Indirect emissions(MBA) (Note 5)	189.1658	0.0635		Assurance Standard: ISO 14064-3:2019
Assurance Opinion: The conclusion was derived based on verification and agreed-upon procedures (AUP).
	Scope 3 Employee commuting	93.0186	0.0312
	Scope 3 Business travel	4.4580	0.0015
2024	Scope 1 Direct emissions	51.6264	0.0231	British Standards Institution (BSI)	Assurance Standard: ISO 14064-3:2019
Assurance Opinion: Reasonable assurance with an unqualified opinion.
	Scope 2 Indirect emissions(LBA) (Note 5)	275.5096	0.1231
	Scope 2 Indirect emissions(MBA) (Note 5)	233.5197	0.1043
	Scope 3 Employee commuting	95.0379	0.0425		Assurance Standard: ISO 14064-3:2019
Assurance Opinion: The conclusion was derived based on verification and agreed-upon procedures (AUP).
	Scope 3 Business travel	4.4856	0.0020

Note :
1. The Company conducted its first greenhouse gas (GHG) inventory in 2022, in accordance with the International Organization for Standardization ISO 14064-1:2018 standard. Accordingly, 2022 was designated as the base year.
2. Scope 1 (direct GHG emissions) mainly comprises gasoline consumption and refrigerants.
Scope 2 (energy indirect GHG emissions) mainly comprises purchased electricity.
Scope 3 (other indirect GHG emissions) includes 15 categories. Based on the Company's identification of material emission sources, the current inventory covers business travel (Category 6) and employee commuting (Category 7).
3. The organizational boundary for the GHG inventory is defined based on the operational control approach, covering the head office and five branches, including all occupied office premises, with a coverage rate of $100\%$ .
4. GHG emission intensity is calculated based on operating revenue (NT$ million).
5. Under the location-based approach, emissions are calculated using the average emission factors of the geographic location. Under the market-based approach, emissions are calculated based on emission factors specified in energy procurement contracts.
6. In accordance with the "Sustainable Development Roadmap for TWSE/TPEx Listed Companies" issued by the Financial Supervisory Commission (FSC) in March 2022, the Company, as an entity with paid-in capital exceeding NT$10 billion, completed its first Scope 1 and Scope 2 GHG inventory and assurance in 2023 in compliance with the required timeline.

(III) Greenhouse gas reduction goals, strategies and concrete action plans:

1. Greenhouse gas reduction base year and reduction target

To align with the global goal of achieving net-zero emissions by 2050, the Company voluntarily conducted a greenhouse gas (GHG) inventory in 2022 to identify and manage emission sources. Accordingly, 2022 has been designated as the base year. The Company has adopted an absolute approach to set short- to medium-term reduction targets for total Scope 1 and Scope 2 GHG emissions, aiming to achieve a $42\%$ reduction by 2030.

Year	2023	2024	2025	2026	2027	2028	2029	2030
Reduction Target	5.3%	10.5%	15.8%	21.0%	26.3%	31.5%	36.8%	42.0%

In response to government carbon reduction policies and to reduce reliance on conventional energy sources, the Company has also established a phased target to increase the use of renewable energy, with a goal of reaching approximately $50\%$ by 2030.

Year	2024	2025	2026	2027	2028	2029	2030
Procurement Target	15%	21%	27%	33%	39%	45%	51%

2. Greenhouse gas reduction strategies and action plans

The Company's reduction strategy focuses on lowering carbon emissions from its own operations by replacing outdated and energy-intensive equipment and procuring environmentally friendly and energy-efficient products. In 2023, the Taipei head office initiated the replacement of lighting fixtures with energy-saving equipment. In 2024, the Kaohsiung, Tainan, Taichung, and Taoyuan branches followed under the guidance of the head office, completing the replacement with energy-efficient LED panel lighting. In addition, lights are turned off during lunch hours (from 12:30 p.m.) to enhance energy-saving effectiveness. In 2024 and 2025, the Company also replaced official fuel vehicles that had reached the end of their service life with hybrid vehicles to reduce carbon emissions. Furthermore, in response to government carbon reduction policies, the Company has evaluated and introduced renewable energy to reduce reliance on conventional energy sources. A phased target has been established to gradually increase the use of renewable energy, with a goal of reaching $50\%$ by 2030. Renewable energy (green electricity) was introduced in 2024, with supply commencing in August. In addition, the Company requires suppliers to comply with relevant environmental regulations and implements green procurement practices to reduce environmental impact.

Beyond daily operational measures, the Company has established an environmental management system in accordance with the ISO 14001 since 2023, and it continues to maintain third-party certification in 2025, with the certificate valid through December 12, 2026. The Company also conducts annual greenhouse gas inventories in accordance with ISO 14064 to track emission reduction performance.

3. Progress on Emission Reduction Targets

In 2025, the Company's renewable energy (green electricity) consumption totaled $118,000\mathrm{kWh}$ , accounting for $20\%$ of total electricity consumption across all operating locations in Taiwan. A total of 118 renewable energy certificates were issued by the Taiwan Renewable Energy Certificate Center (T-REC) under the Bureau of Standards, Metrology and Inspection, Ministry of Economic Affairs, demonstrating the achievement of the Company's renewable energy usage target for 2025.

The Company's total Scope 1 and Scope 2 emissions in 2025 decreased by $15\%$ compared to the base year. In addition, under the environmental management system established in accordance with ISO 14001, the Company set management targets for 2025 to reduce water consumption and waste generation by $2\%$ (base year: 2022). Following a review of implementation results at the Environmental Management Review Meeting held in October 2025, total annual water consumption decreased by $19.46\%$ compared to the previous year (a reduction of $21\%$ compared to the base year), achieving the established target. However, waste generation slightly increased by $0.83\%$ compared to the previous year due to changes in office operations and daily practices. The Company will continue to review and strengthen relevant reduction measures going forward.

VIII. Fulfillment of ethical corporate management and deviations from the “Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies” and the reasons thereof

Scope of Assessment	Status			Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary
I. Enactment of ethical corporate management policy and program
(I) Whether the bills finance company formulates a Board of Directors approved ethical corporate management policy and expressly states the ethical corporate management policy and rules, and its fulfillment by the Board of Directors and the management in its Articles of Incorporation and public documents?
(II) Whether the bills finance company establishes a risk assessment mechanism for unethical conduct, regularly analyzes and assesses business activities with a higher risk of unethical conduct and adopts any preventative program against the unethical conducts which at least cover the preventive measures stipulated in Paragraph 2 of Article 7 of the “Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”?
(III) Does the bills finance company clearly set out the operating procedures, behavior guidelines, and punishment and appeal system for violations in the unethical conduct prevention program, implement it, and regularly review and revise the plan?	☑		(I) The Board of Directors has approved the implementation of the “Procedures for Ethical Management and Guidelines for Conduct”, which outlines the Company’s ethical management policy, detailing the policies and practices of ethical management and the roles of the Board of Directors and management. In addition, the company has implemented an “Code of Ethical Conduct” to deter conflicts of interest and the “Regulations Governing Procedure for Board of Directors Meetings” mandating that directors steer clear of conflicts of interest.
(II) The Company has established the “Procedures for Ethical Management and Guidelines for Conduct” as a guideline for evaluating and implementing ethical corporate management, and regularly reports to the Board of Directors on the promotion of ethical corporate management each year. This guideline provides precautionary measures for business activities with higher risk of unethical conduct within the business scope, which are sufficient to cover the behaviors in Paragraph 2 of Article 7 of the “Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies.” The Guidelines expressly state the operating procedure for dealing with the acceptance of unjustified enrichment, and also provide that the Company shall comply with the relevant requirements when providing donations, sponsorship or political contribution; the Company shall comply with the Fair Trade Act and related competition laws when engaging in business activities; the Company shall comply with related laws and international practices with respect to the products and services provided by the Company; the Company’s staff shall comply with the operating procedures related to intellectual property rights when carrying out business. Where any person is in violation of the Guidelines, the Company shall demand that the offender cease the related activities immediately, and shall take appropriate measures against the offender, and claim damages through legal action, if necessary.
(III) The Company’s “Procedures for Ethical Management and Guidelines for Conduct” detail the specific regulations for employees to follow while conducting business. The procedures require the Company to integrate ethical management into employee performance evaluations and human resources policies, as well as to implement a structured system of rewards, penalties, and a grievance process. The Company reviews external laws and regulations and internal practices regularly on an annual basis to amend relevant regulations in a timely manner.	No deviation.
II. Implementation of ethical management
(I) Whether the bills finance company assesses a trading counterpart’s ethical management record, and expressly states the ethical corporate management clause in the contract to be signed with the trading counterpart?	☑		(I) The Company’s Procedures for Ethical Management and Guidelines for Conduct contains clear-cut regulations mandating that all contracts with suppliers contain ethical provisions. When executing a contract with suppliers, the Company is advised to understand the suppliers’ ethical management status and include in the contract the provisions mandating compliance with the Company’s ethical management policy; such contract must also contain clear provisions mandating damages or termination or cancellation of contract in the event of receiving improper benefits.	No deviation.

Scope of Assessment	Status
	Yes	No	Summary
(II) Whether the bills finance company establishes a unit dedicated to promoting ethical corporate management, under supervision by the Board of Directors, which shall be responsible for reporting the ethical corporate management policy, the prevention program against unethical conduct and the implementation and supervision status thereof to the Board of Directors periodically (at least once a year)?			(II) Considering the Company’s operating size, the Company authorizes the President to designate the Management Department as the unit exclusively responsible for ethical corporate management, and implementation and supervision of documentation of reported content.
The Audit Office is the unit exclusively responsible for dealing with whistleblowing and regularly reporting the whistleblowing content to the Board of Directors.
The Management Department also coordinates the reporting of the current year’s implementation progress to the Board of Directors. The progress in implementation of ethical corporate management in 2025 was reported to the 20th meeting of the 16th Board of Directors dated December 16, 2025 and approved by it.
(III) Whether the bills finance company defines any policy against conflict of interest, provides adequate channel thereof, and fulfills the same precisely?			(III) Directors and personnel of the Company must avoid conflict of interest when performing duties. As for our grievance channel, within three days after acceptance, company personnel must report to their department supervisor and hand in the accepted things to the Company’s responsible unit for further processing, including having the things returned, paying for the things, confiscating the things, donating the things to charitable organizations, among other measures, subject to an approval.
(IV) Whether the bills finance company fulfills the ethical corporate management by establishing an effective accounting system and internal control system, and has the internal audit unit prepare an audit plan based on the risk assessment results for unethical conduct to check the compliance of the prevention program against the unethical conducts, or appoints an external auditor to do so?			(IV) Through internal auditors, commissioned CPAs, legal compliance self assessment, and the self-audit mechanism of our internal control system, the Company regularly reviews the compliance with its accounting system and internal control system and reporting the audit findings to the Board of Directors.
(V) Does the bills finance company provide internal and external ethical conduct training programs on a regular basis?			(V) The Company conducts regular compliance training on an annual basis to communicate internal regulations, personal data protection, and relevant compliance frameworks. Integrity and ethical conduct training is also provided, and through both internal and external training programs and awareness initiatives, the Company actively enforces the prohibition of insider trading.
Training and awareness activities in 2025 are as follows:
1. Internal training
In November 2025, the Management Department organized one online integrity training session, with a duration of 1 hour and a total of 156 participating employees. The training featured the corporate integrity microfilm “The Promise” and covered key topics including the Company’s “Procedures for Ethical Management and Guidelines for Conduct,” “Code of Ethical Conduct,” insider trading prevention, confidentiality requirements, and whistleblowing mechanisms. In August 2025, the Legal and Compliance Department conducted an online training session for all employees on insider trading prevention. The course, titled “2025 Second Half Compliance and Latest Financial Regulations Training (including Personal Data Protection and Customer Data Confidentiality)”, lasted 2 hours and was attended by 151 employees.
2. External training
(1) All eight directors (including three independent directors) attended a training program held by the Chinese Corporate Governance Association on June 17, 2025, titled “Corporate Ethical Management Best Practice Principles and Directors’ Ethical Conduct – From Anti-Money Laundering and Counter-Terrorism Financing Perspectives”. The session lasted 3 hours and included content on insider trading prevention.
(2) In October 2025, one department head participated in an external training program on insider trading prevention organized by the Taiwan Stock Exchange, titled “2025 Insider Trading Prevention Awareness Seminar”, with a duration of 3 hours.

Scope of Assessment	Status			Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEX Listed Companies and the Reasons
	Yes	No	Summary
III. Bills finance company whistleblowing system operation status(1) Whether the bills finance company defines a specific whistle-blowing and rewards system, and establishes some convenient whistle-blowing channel, and assigns competent dedicated personnel for the reported subject?(II) Does the bills finance company establish standard operating procedures for investigating the complaints received, follow-up measures to be adopted, and the related confidentiality measures after investigation?(III) Whether the bills finance company adopts any measures to prevent the whistle-blowers from being abused after the whistle-blowing?	✓		(I) Article 5 in the “Procedures for Ethical Management and Guidelines for Conduct” of the Company specifically states that the Audit Office is the designated unit for dealing with whistleblowing. Article 21 promotes the reporting of dishonest or inappropriate behavior by both internal and external personnel. It outlines the reporting system in full, including reporting channels and how reports are handled. The Company has set up separate reporting mailboxes and hotlines on its official and internal websites for both internal and external individuals to use. In August 2018, the Board of Directors passed the Company’s “Regulations Governing Whistle-Blowing Cases,” which was already posted on the Company’s website.(II) The Company’s Procedures for Ethical Management and Guidelines for Conduct specifies the information a whistleblower must provide and the procedures the Audit Office must follow to proceed. In August 2018, the Company established the “Measures for Dealing with Whistleblowing Cases”. Article 8 outlines the prescribed protocols for conducting investigations and storing data, while Article 9 addresses the mechanism for maintaining confidentiality.(III) The Company’s investigation process will not be disclosed to the public, and only the dedicated unit’s authorized personnel may access the mails sent to the whistle-blowing mailbox. Article 9 of the Company’s “Regulations Governing Whistle-Blowing Cases” expressly states the whistle-blower protection policy. The Company shall promise not to take any actions disadvantaged to the whistle-blower on the ground of the whistle-blowing. The whistle-blower who considers that he/she is subject to any action disadvantaged to him/her may file a complaint with the Audit Committee.There were no internal or external whistleblowing cases reported in 2025.	No deviation.
IV. Enhancing Information DisclosureDoes the bills finance company disclose the content and implementation results of its Ethical Corporate Management Best Practice Principles on its website and the Market Observation Post System?	✓		The Company’s ethical corporate management information can be found on the Company’s website and the Market Observation Post System, along with the reporting hotline and mailbox details in the Stakeholder section.	No deviation.
V. If the bills finance company has adopted its own ethical corporate management best practice principles based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEX-Listed Companies, please describe any deviation from the principles in the company’s operations: No deviation.
VI. Other information material to the understanding of ethical corporate management operation (e.g. discussion of an amendment to the ethical corporate management best-practice principles defined by the Company):1. Promotion of Ethical Management(1) In May and August 2025, the Legal and Compliance Department conducted online training sessions for all employees on compliance and the latest financial regulations for the first and second halves of the year.(2) In November 2025, the Management Department conducted an online training session on ethical management for all employees.2. In 2025, no reports were received through the Company’s anti-corruption whistleblowing hotline or mailbox.3. For further details on the Company’s ethical management practices, please refer to the “Ethical Corporate Management” section on the Company’s website:https://www.cbf.com.tw/np.asp?ctNode=1002&mp=1

IX. Methods for Accessing the Company's Corporate Governance Principles and Related Regulations

The Company announced and implemented the "Corporate Governance Best Practice Principles" in May 2018. In 2019 and 2021, the Company made revisions to the Principles with reference to the updated "Corporate Governance Best Practice Principles for Bills Finance Companies" issued by the relevant industry association, taking into account its operational practices. The Principles are disclosed on the Company's official website (www.cbf.com.tw) under the "Investor Relations" section, within the "Corporate Governance" category.

X. Implementation of the internal control system

(I) Internal Control System Statement

See Page 58.

China Bills Finance Corporation

Statement on Internal Control System

We hereby declare on behalf of China Bills Finance Corporation that in the period from January 1, 2025 to December 31, 2025, the Company duly complied with the “Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries” and it has established the internal control system, implemented the risk management, designated the Internal Audit Dept., which acts independently, to conduct the audit and report to the Board of Directors and Audit Committee periodically, in accordance with Item 5 of Article 38 and Article 38-1 of the aforementioned rules and the information security self-discipline stipulated by Bill Finance Association. With respect to concurrent engagement in securities trading, the Company adopted the criteria for determination of the effectives of internal control system referred to in the “Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets” promulgated by Securities and Futures, FSC to validate the effectiveness of its internal control policy design and execution. After a careful assessment, it was found that, in addition to the items listed in the attached table, all units were able to effectively implement internal control and legal compliance tasks during the year.

This Statement constitutes an integral part of the Company’s annual report and prospectus, and is disclosed to the public. If the information listed above is fraudulent or deceptive to the point that is against the law, the Company shall be held liable under Articles 20, 32, 171, and 174 of the Securities and Exchange Act

To: Financial Supervisory Commission (FSC)

Declarers:

Chairman of Board: Cheng-Chuan Chang
President: Cheng Hsiang Wei
Chief Auditor: Gwo-Cheng Tu
Head Office CCO: Li-Min Ou
Chief Information Security Officer: Cheng Hsiang Wei

March 24, 2026

(2) Independent external auditor's report on special audit of internal control system:

None.

XI. Important resolutions of directors' meetings during the most recent year and up to the date of publication of this annual report

On March 25, 2025, the 11th meeting of the 16th Board of Directors approved the distribution of employee compensation and directors' remuneration for 2024.
On March 25, 2025, the 11th meeting of the 16th Board of Directors approved the re-appointment of Deloitte to conduct the financial and tax audits and related services for 2025.
On March 25, 2025, the 11th meeting of the 16th Board of Directors approved the convening and agenda of the Company's 2025 Annual General Meeting.
On February 26, 2026, the 22nd meeting of the 16th Board of Directors approved the distribution of employee compensation and directors' remuneration for 2025.
On February 26, 2026, the 22nd meeting of the 16th Board of Directors approved the re-appointment of Deloitte to conduct the financial and tax audits and related services for 2026.
On March 24, 2026, the 23rd meeting of the 16th Board of Directors approved the convening and agenda of the Company's 2026 Annual General Meeting.

XII. The main contents of important resolutions passed by the Board of Directors regarding which directors have voiced differing opinions on the record or in writing:

None.

Four. Information about Independent Auditor Fees

Unit: NT$1,000

Firm Name	Name of accountant		CPA Audit period	Audit Fee	Non-audit fees (Note 1)	Total	Remarks
Deloitte Taiwan	Kuan-Hao Li	Chen, Ying-Chou	2025/01/01 ~2025/12/31	3,064	2,072	5,136

Note 1: Includes translation fee of NT$456,000, protocol procedure audit service of NT$1,020,000, attestation of personal information processing and AML/CFT practices of NT$459,000, and other services of NT$137,000.
Note 2: There is no reduction of audit fees exceeding 10% from the previous year.

Five. Information about replacement of CPAs

(I) Former Auditors

Date of Change	Approved by the Board of Directors on February 26, 2026.
Reason for Change	Internal organizational restructuring of Deloitte
Indication of Whether the Termination Was Initiated by the Client or the Auditors	Party Status		Auditors	Client
	Initiated termination of engagement		☑
	Refusal to accept (or continue) the engagement
Audit Reports Issued in the Most Recent Two Years with Opinions Other Than Unqualified Opinions and Reasons	None
Disagreements with the Company	Yes		On accounting principles or practices
			On financial report disclosures
			On audit scope or procedures
			Other matters
	No	☑
	Explanation:
Other Disclosure Items (as required under Article 10, Paragraph 6, Subparagraph 1(4) of the Regulations)	None

(II) Successor Auditors

Name of Firm	Deloitte
Names of CPAs	Kuan-Hao Li, CPA; Chia-Ming Chang, CPA
Date of Appointment	Approved by the Board of Directors on February 26, 2026.
Consultation on Accounting Treatments or Principles Prior to Appointment and Results	Not applicable.
Written Opinions from Successor Auditors on Disagreements with Former Auditors	Not applicable.

Six. The facts about the Company chairman, president, managerial officer in charge of financial or accounting affairs having served with the CPA Office or the affiliation thereof over the past year

None

Seven. Transfer/pledge of equity by directors, managers, and any officers required to declare equity under Article 10 of the Act Governing Bills Finance Business

I. Changes of Equity by Directors, Managers, and Any Officers Required to Declare Equity Under Article 10 of the Act Governing Bills Finance Business

Title	Name	2025		For the year up to March 24, 2026
			Increase (decrease) in shares held	Increase (decrease) in pledged shares	Increase (decrease) in shares held	Increase (decrease) in shares pledged
Major shareholders	O-Bank		None	None	None	None
Major shareholders	Mingshan Investment Co., Ltd.		None	None	None	None
Major shareholders	Ho-Chu Investment Co., Ltd.		None	None	None	None
Major shareholders	PJ Asset Management Co., Ltd.		None	None	-4,431,000	None
Director	Cheng-Chuan Chang	Representative of O-Bank	None	None	None	None
Director	Chih-Yuan Hsu		None	None	None	None
Director	Chih-Yu Hsiao		None	None	None	None
Director	Yi-Ru Lo	Representative of Mingshan Investment Co., Ltd.	None	None	None	None
Director	Si-Tsung Cheng	Representative of Ho-Chu Investment Co., Ltd.	None	None	None	None
Director	Fan-Shuo, Tseng		None	None	None	None
Independent Director	Chung-Ming Kuo		None	None	None	None
Independent Director	Horng-Dar Lin		None	None	None	None
Independent Director	Shu-Fen, Liu		None	None	None	None
Chairman	Cheng-Chuan Chang		None	None	None	None
President	Cheng-Hsiang Wei		None	None	None	None
Chief Auditor	Gwo-Cheng Tu		None	None	None	None
Vice President	Yong-Chih Wang		None	None	None	None
Vice President	Ya-Ling Yang		None	None	None	None
Assistant Vice President	Yi-Chang Kan		None	None	None	None
Assistant Vice President	Jen-Chieh Chen		None	None	None	None
Assistant Vice President	Hung-Ta Chou		None	None	None	None
Assistant Vice President	Li-Fan Liu		None	None	None	None

Title	Name	2025		For the year up to March 24, 2026
		Increase (decrease) in shares held	Increase (decrease) in pledged shares	Increase (decrease) in shares held	Increase (decrease) in shares pledged
Manager (Resigned on July 14, 2025)	Min-Mei Huang	None	None	Not Applicable	Not Applicable
Manager (Succeeded to the position on July 14, 2025)	Ju-Ching Lin	+559	None	None	None
Assistant Vice President (Succeeded to the position on January 1, 2025)	Li-Min Ou	None	None	None	None
Assistant Vice President	Ming-Chi Chou	None	None	None	None
Assistant Vice President	Pei-Hsia Lu	None	None	None	None
Assistant Vice President	Ruei-Wen Tseng	None	None	None	None
Assistant Vice President	Chung-Hsien Tsao	None	None	None	None
Assistant Vice President	Shan-Hsien Wang	None	None	None	None
Accounting Supervisor (Succeeded to the position on January 1, 2025)	Yu-Yi Fang	+600	None	None	None

II. Information about the counterpart in any transfer or pledge of equity who is a related party

(1) Information about the counterpart in any transfer of the Company's equity who is a related party

None.

(2) Information about the counterpart in any pledge of the Company's equity who is a related party

None.

Eight: Disclosure of information on related parties or spousal relationship or relations within second degree of kinship, among top ten shareholders, in terms of shareholdings

Record date: March 24, 2026

Number	Title (or Name)	Shareholdings by oneself		Shareholdings of spouse and underage children		Shareholding using other's name		Name and relationship of the ten largest shareholders who are a related party, spouse, or a relative within the second degree of kinship of one another		Remarks
		Number of shares	Shareholding Rate	Number of shares	Shareholding Rate	Number of shares	Shareholding Rate	Title (or Name)	Relationship
1	O-Bank Co., Ltd Person in charge: Tina Y. Lo	380,981,600	28.36%	0	0.00%	0	0.00%	None	None	Notes 1
2	PJ Asset Management Co., Ltd. Person in charge: Chen-Hai Lin	223,716,000	16.66%	0	0.00%	0	0.00%	Serial no. 3	A relative within 2nd degree of kinship with the responsible person
3	Ho-Chu Investment Co., Ltd. Responsible person: Chia-Hung Lin	77,084,000	5.73%	0	0.00%	0	0.00%	Serial no. 2	A relative within 2nd degree of kinship with the responsible person	Notes 2
4	Deutsche Bank AG, Taipei Branch (Dunhua), as custodian for the iShares Core MSCI Emerging Markets ETF investment account	17,331,000	1.29%	0	0.00%	0	0.00%	None	None	Investment by overseas Chinese
5	JPMorgan Chase Bank, N.A., Taipei Branch, as custodian for the Vanguard Group-managed Vanguard Emerging Markets Stock Index Fund investment account	8,433,028	0.63%	0	0.00%	0	0.00%	None	None	Investment by overseas Chinese
6	Yi Sheng Investment Co., Ltd. Responsible person: Li-Hua Lan	7,100,000	0.53%	0	0.00%	0	0.00%	None	None
7	JPMorgan Chase Bank, N.A., Taipei Branch, as custodian for the Vanguard Emerging Markets Stock Index Fund managed by The Vanguard Group, Inc.	6,947,000	0.52%	0	0.00%	0	0.00%	None	None	Investment by overseas Chinese
8	National Taiwan University	6,792,000	0.51%	0	0.00%	0	0.00%	None	None

Number	Title (or Name)	Shareholdings by oneself		Shareholdings of spouse and underage children		Shareholding using other's name		Name and relationship of the ten largest shareholders who are a related party, spouse, or a relative within the second degree of kinship of one another		Remarks
		Number of shares	Shareholding Rate	Number of shares	Shareholding Rate	Number of shares	Shareholding Rate	Title (or Name)	Relationship
9	JPMorgan Chase Bank, N.A., Taipei Branch, as custodian for the Robeco Capital Growth Funds investment account	6,589,000	0.49%	0	0.00%	0	0.00%	None	None	Investment by overseas Chinese
10	Jiayuan Investment Co., Ltd. Responsible person: Hsien-Ho Shen	6,144,000	0.46%	0	0.00%	0	0.00%	None	None

Note 1: The representatives designated by the corporate shareholder are Mr. Cheng-Chuan Chang, Mr. Chih-Yuan Hsu, and Miss Chih-Yu Hsiao.
Note 2: The representatives designated by the corporate shareholder are Mr. Si-Tsung Cheng and Mr. Fan-Shuo, Tseng.

Nine. Total number of shares and total equity stake held in any single invested enterprise by the Company, its directors, President, vice presidents, assistant vice presidents, department and branch managers and any companies controlled either directly or indirectly by the Company

Units: 1000 shares
Record date: December 31, 2025

Investee (Note)	Investment made by the Company		Investment by the directors, President, vice presidents, assistant vice presidents, department and branch managers and any companies controlled either directly or indirectly by the Company		Total investment
	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio
Core Pacific City Co., Ltd.	49	0.49%	None	0.00%	49	0.49%
Taiwan Asset Management Corporation	6,000	0.57%	None	0.00%	6,000	0.57%
Taiwan Depository & Clearing Corporation (TDCC)	5,074	0.50%	None	0.00%	5,074	0.50%
Taiwan Futures Exchange (TAIFEX)	3,247	0.45%	None	0.00%	3,247	0.45%

Note: Investment made by Article 40, Paragraph 1 of the Act Governing Bills Finance Business.

Capital Overview

One. Capital and Shares

I. Capital stock sources

Unit: NT$1,000; 1,000 shares
Record date: March 24, 2026

Date/Year	Issue price	Authorized capital stock		Paid-in capital		Remarks
		Number of shares	Amount	Number of shares	Amount	Capital stock source	Others
1992.09	NT$10	360,000	3,600,000	270,000	2,700,000	The capital was NT$200,000 thousand when the Company was founded, and the cash capital increase by NT$175,000 thousand, recapitalization from earnings by NT$2,249,100 thousand (including employee bonus NT$111,905.5 thousand), and recapitalization from special reserve by NT$75,900 thousand.	Note 1
1993.09	NT$10	360,000	3,600,000	340,000	3,400,000	The recapitalization from earnings by NT$625,750 thousand (including employee bonus NT$33,100 thousand), and recapitalization from special reserve by NT$74,250 thousand.	Note 2
1994.12	NT$10	405,000	4,050,000	405,000	4,050,000	The recapitalization from earnings by NT$629,260 thousand (including employee bonus NT$27,800 thousand), and recapitalization from special reserve by NT$20,740 thousand.	Note 3
1995.10	NT$10	590,000	5,900,000	590,000	5,900,000	The cash capital increase by NT$1,000,000 thousand, recapitalization from earnings by NT$748,750 thousand (including employee bonus NT$40,000 thousand), and recapitalization from capital surplus by NT$101,250 thousand.	Note 4
1996.10	NT$10	900,000	9,000,000	900,000	9,000,000	The cash capital increase by NT$2,000,000 thousand, recapitalization from earnings by NT$893,500 thousand (including employee bonus NT$38,000 thousand), and recapitalization from capital surplus by NT$206,500 thousand.	Note 5
1997.10	NT$10	1,250,000	12,500,000	1,250,000	12,500,000	The cash capital increase by NT$2,000,000 thousand, recapitalization from earnings by NT$969,000 thousand (including employee bonus NT$33,000 thousand), and recapitalization from capital surplus by NT$531,000 thousand.	Note 6
1998.08	NT$10	1,445,000	14,450,000	1,445,000	14,450,000	The recapitalization from earnings by NT$1,118,750 thousand (including employee bonus NT$32,500 thousand), and recapitalization from special reserve by NT$831,250 thousand.	Note 7

Date/Year	Issue price	Authorized capital stock		Paid-in capital		Remarks
		Number of shares	Amount	Number of shares	Amount	Capital stock source	Others
1999.11	NT$10	1,852,000	18,520,000	1,652,000	16,520,000	The recapitalization from earnings by NT$1,246,350 thousand (including employee bonus NT$47,000 thousand), and recapitalization from special reserve by NT$823,650 thousand.	Note 8
2000.09	NT$10	1,720,000	17,200,000	1,720,000	17,200,000	The recapitalization from earnings by NT$171,184 thousand (including employee bonus NT$19,200 thousand), and recapitalization from special reserve by NT$508,816 thousand.	Note 9
2001.03	NT$10	1,678,700	16,787,000	1,678,700	16,787,000	Capital decrease by NT$413,000 thousand upon repurchase of treasury stock.	Note 10
2010.01	NT$10	1,678,700	16,787,000	1,342,960	13,429,600	Cash capital decrease by NT$3,357,400 thousand	Note 11

Note 1: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (81) Tai-Cai-Zhen-(1)-Zi No. 01771 dated July 24, 1992
Note 2: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (82) Tai-Cai-Zhen-(1)-Zi No. 30864 dated July 20, 1993
Note 3: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (83) Tai-Cai-Zhen-(1)-Zi No. 42731 dated October 6, 1994
Note 4: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (84) Tai-Cai-Zhen-(1)-Zi No. 33106 dated June 15, 1995
Note 5: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (85) Tai-Cai-Zhen-(1)-Zi No. 39386 dated July 4, 1996
Note 6: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (86) Tai-Cai-Zhen-(1)-Zi No. 52380 dated July 14, 1997
Note 7: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (87) Tai-Cai-Zhen-(1)-Zi No. 49410 dated June 6, 1998
Note 8: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (88) Tai-Cai-Zhen-(1)-Zi No. 84213 dated September 18, 1999
Note 9: Approval Letter from the Securities and Futures Commission of the Ministry of Finance under (89) Tai-Cai-Zhen-(1)-Zi No. 61462 dated July 17, 2000
Note 10: Approval Letter from the Ministry of Finance under Tai-Cai-Rong-(4)-Zi No. 89451711 dated January 16, 2001
Note 11: Approval Letter from the Financial Supervisory Commission of Executive Yuan under Jin-Kuan-Zhen-Fa-Zi No. 0980069085 dated January 6, 2010

Units: 1000 shares

Record date: March 24, 2026

Share type	Authorized capital stock			Remarks
	Outstanding shares	Unissued shares	Total
Common stock (at par value of NT$10 per share)	1,342,960	335,740	1,678,700	Stock issued by the listed bills finance corporation

Record date: March 24, 2026

II. List of major shareholders

Name of major shareholder (Note)	Shares held (shares)	Shareholding ratio
O-Bank Co., Ltd.	380,981,600	28.36%
PJ Asset Management Co., Ltd.	223,716,000	16.66%
Ho-Chu Investment Co., Ltd.	77,084,000	5.73%
Deutsche Bank AG, Taipei Branch (Dunhua), as custodian for the iShares Core MSCI Emerging Markets ETF investment account	17,331,000	1.29%
JPMorgan Chase Bank, N.A., Taipei Branch, as custodian for the Vanguard Group-managed Vanguard Emerging Markets Stock Index Fund investment account	8,433,028	0.63%
Yi Sheng Investment Co., Ltd.	7,100,000	0.53%
JPMorgan Chase Bank, N.A., Taipei Branch, as custodian for the Vanguard Emerging Markets Stock Index Fund managed by The Vanguard Group, Inc.	6,947,000	0.52%
National Taiwan University	6,792,000	0.51%
JPMorgan Chase Bank, N.A., Taipei Branch, as custodian for the Robeco Capital Growth Funds investment account	6,589,000	0.49%
Jiayuan Investment Co., Ltd.	6,144,000	0.46%

III. Dividend Policy and Implementation Status

(I) Dividend policy

After the Company’s annual final accounts have been settled, all applicable taxes paid, and accumulated losses offset, if there are remaining earnings, 30% shall be appropriated as legal reserve, unless the legal reserve has reached the Company’s paid-in capital. The Company shall also appropriate special reserves in accordance with applicable laws and regulations. After adding any reversal of special reserves and accumulated undistributed earnings, the Company may, for specific purposes, further appropriate special reserves. Any remaining balance may then be distributed to shareholders as dividends.

The distribution of earnings shall be proposed by the Board of Directors and approved by the shareholders’ meeting.

The distribution of dividends to shareholders shall be resolved at the shareholders’ meeting in accordance with the following principles:

I. The Company may distribute all or part of its reserves in accordance with applicable laws and regulations; however, no dividends shall be distributed if the Company has no earnings.

II. As the Company operates in a highly competitive financial industry that has reached a stage of slower growth, the distribution of dividends to shareholders shall not be less than 20% of the distributable earnings as calculated in the preceding paragraph. Cash dividends shall be given priority, although stock dividends may also be distributed. However, the cash portion shall not be less than 40% of the total dividends distributed for the year.

III. The Company may, depending on economic conditions, industry developments, and funding needs, adjust the aforementioned dividend distribution principles upon resolution by the shareholders' meeting when necessary.

(II) Proposed Dividend Distribution for the Current Shareholders' Meeting: The Company proposes to distribute a cash dividend of NT$0.90 per share.

IV. The effects of bonus dividend proposed at this shareholders' meeting on business performance and EPS: None.

V. Employee Compensation and Directors' Remuneration

(I) Percentage or Range as Stipulated in the Articles of Incorporation

According to the Company's Articles of Incorporation, if the Company reports a profit for the year, employee compensation and directors' remuneration shall be appropriated in accordance with the following principles, subject to approval by the Board of Directors with the attendance of at least two-thirds of all directors and a majority vote of the directors present. However, if the Company has accumulated losses, an amount shall first be reserved to offset such losses before any appropriation is made. The appropriations shall be as follows:

I. Employee Compensation: 1.00% to 2.50% of profits, of which no less than 15% of the appropriated amount shall be distributed to entry-level employees.

II. Directors' Remuneration: up to 2.50% of profits; however, independent directors shall not participate in the distribution.

The aforementioned "profit" refers to profit before tax and before deduction of employee compensation and directors' remuneration.

Employee compensation may be distributed in the form of shares or cash, whereas directors' remuneration shall be paid in cash only. After approval by the Board of Directors in accordance with the foregoing, the distribution proposal and method shall be reported to the shareholders' meeting.

(II) Basis for the Estimation of Employee Compensation and Directors' Remuneration, the Basis for Calculating the Number of Shares for Employee Compensation Distributed in Shares, and the Accounting Treatment of Any Differences Between the Actual Distribution and the Estimated Amounts:

For 2025, the Company accrued NT$34,877,731 for both employee compensation and directors' remuneration. Such amounts were estimated based on the Company's profit before tax and prior to the deduction of employee compensation and directors' remuneration, in accordance with the percentage ranges stipulated in the Articles of Incorporation. The actual amounts to be distributed are determined based on the resolutions of the Board of Directors. Any differences between the accrued and actual amounts shall be recognized as changes in accounting estimates and adjusted in the expenses of the year in which such differences occur. In addition, the Company did not distribute employee compensation in the form of shares.

(III) Distribution of Compensation as Approved by the Board of Directors

Amounts of Employee Compensation and Directors' Remuneration Distributed in Cash or Shares (Where There Is a Difference from the Amounts Accrued in the Financial Statements, the Difference, Reasons, and Accounting Treatment Shall Be Disclosed):

Pursuant to the resolution of the 22nd meeting of the 16th Board of Directors held on February 26, 2026, the Company proposed to distribute employee compensation and directors' remuneration for 2025 in the amount of NT$34,877,731 each. In addition, the Company did not distribute employee compensation in the form of shares. The proposed distribution amounts of employee compensation and directors' remuneration for 2025, as approved by the Board of Directors, do not materially differ from the amounts recognized in the 2025 financial statements.

Amount of Employee Compensation Distributed in Shares and Its Proportion to the Net Income After Tax of the Current Period (Standalone or Individual Financial Statements) and to the Total Employee Compensation: None.

(IV) The actual allocation of remuneration to employees and directors in 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 allocated amount and the recognized amount, additionally specify the amount of the discrepancy, the cause, and how it is treated.

Director remuneration: director remuneration recognized in 2025 amounted to NT$21,196,256, and the actual cash paid was NT$21,196,256, with no significant difference.
Employee remuneration: employee remuneration recognized in 2025 amounted to NT$21,196,256, and the actual cash paid was NT$21,196,256, with no significant difference.

VI. Status of Share Repurchases by the Company

None.

Two. Corporate bond, preferred stock, employee stock options, restricted stock for employees and merger & acquisition or succession to other financial institutions

None.

Three. Implementation of Capital Utilization Plan

I. Contents of the Plan: Analysis on the previous plans for offering or private placement of securities and corporate bonds which have not yet completed, or the plans which have been completed within the most recent 3 years but have not yet produced any significant effects.

None.

II. Implementation of Capital Utilization Plan

None.

Overview of Operations

One. The content of business

I. Business Overview

(I) Scope of business

The Company’s scope of business is stated as following:

Certification and underwriting services for short-term bills.
Certification and underwriting services for bank debentures.
Brokerage and proprietary trading services for short-term bills.
Brokerage and proprietary trading services for bank debentures.
Proprietary trading of government bonds.
Guarantees and endorsement services for short-term bills.
Providing financial consulting services to enterprises.
Intermediary for inter-bank call loans
Proprietary trading of corporate bonds.
Equity investments.
Fixed income securities proprietary trading.
Proprietary trading of foreign currency bonds.
Investments in foreign currency bonds.
Other business as authorized by the competent authorities.

(II) Proportions of assets and revenue of each business segment as a percentage of the Company’s total assets and total revenue, along with their growth and changes.

1. Assets

(in NT$1,000)	Dec 31, 2025		Dec 31, 2024		Comparison with Dec 31, 2024
	Amount	%	Amount	%	Increase (decrease) amount	%
Bills	136,887,270	51.64	139,143,841	55.06	(2,256,571)	(1.62)
Bonds	124,511,291	46.96	109,544,247	43.34	14,967,044	13.66
Equity investment business	1,599,645	0.60	1,252,016	0.50	347,629	27.77
Others	2,123,649	0.80	2,786,805	1.10	(663,156)	(23.80)
Total	265,121,855	100.00	252,726,909	100.00	12,394,946	4.90

2. Revenue

(in NT$1,000)	2025		2024		Comparison with 2024
	Amount	%	Amount	%	Increase (decrease) amount	%
Bills	2,306,529	77.44	2,018,495	90.17	288,034	14.27
Bonds	719,744	24.16	243,503	10.88	476,241	195.58
Equity investment business	251,043	8.43	265,539	11.86	(14,496)	(5.46)
Others	(298,741)	(10.03)	(289,007)	(12.91)	(9,734)	(3.37)
Total	2,978,575	100.00	2,238,530	100.00	740,045	33.06

(III) Summary of Key Business Scopes

Unit: NTD million, USD million

Item	For the Year and As of December 31, 2025	For the Year and As of December 31, 2024	Increase/Decrease ratio (%)
Underwriting and initial purchase of various bills	3,812,999	3,711,181	2.74%
Trading of various bills	8,757,943	7,817,529	12.03%
Balance of guaranteed commercial papers	117,479	114,282	2.80%
Trading of various bonds in New Taiwan dollar	2,211,002	1,949,819	13.40%
Trading of various bonds in foreign currencies (USD)	17,256	18,180	-5.08%

II. 2025 Business Plan

(I) Bill Business

Expand the scope of underwriting, including proprietary and third-party guarantees as well as unsecured primary underwriting, to increase market share.
Continue to promote the revolving issuance of commercial paper and actively pursue syndicated loan and joint underwriting opportunities.
Further enhance the management and allocation of retained positions to capture profit opportunities.
Broaden and deepen the secondary customer base to reduce funding costs and improve capital utilization efficiency.

(II) Bond Business

Focus on research and analysis of domestic and international economic fundamentals, technical indicators, and market information to enhance investment performance.
Manage the credit quality of investment portfolios and allocate to higher-rated bond instruments.
Continue to actively expand the bond repurchase (RP) client base to increase funding sources and effectively reduce funding costs.

(III) Equity Investment Business

Closely monitor global economic and financial developments, assess short- and long-term market trends, and invest in fundamentally strong equities.
Strengthen industry and company-level fundamental research, participate in investor conferences and client meetings to obtain primary information, and adjust investment strategies with flexibility based on such insights.
Maintain long-term cooperative relationships with underwriting channels, participate in book-building and auction processes, and actively source convertible bond primary market opportunities.
Conduct rigorous screening of convertible bonds and asset swap instruments to effectively manage credit risk.

(IV) Credit Business

Continue to optimize the customer portfolio to enhance the yield of credit assets.
Expand business opportunities in green commercial paper or ESG-qualified projects, syndicated loans, and non-real-estate-backed financing.
Prudently select real estate-related projects to further improve the quality and returns of such assets.
Incorporate sustainable lending concepts and progressively advance toward sustainable finance objectives.
Continue to integrate and streamline information systems to enhance credit management efficiency.

III. Market Analysis

(I) Regions of Business Operations

As of December 31, 2025, the Company has established branches in Banqiao, Taoyuan, Taichung, Tainan, and Kaohsiung, in addition to the Taipei headquarters, for a total of 6 business locations, covering the domestic market.

(II) Future Market Supply and Demand and Competitive Advantages for Growth

1. Bill Business

Due to accounting classification requirements, commercial paper issued by companies in traditional industries is generally recorded as current liabilities, resulting in their gradual withdrawal from the primary issuance market. However, issuance volume and market scale in the primary market—particularly among financial-related industries—continue to show signs of sustainable growth. Benefiting from the continued expansion of primary issuance demand, overall trading volume and market size in the secondary market are expected to maintain steady growth.

2. Bond Business

In 2026, the issuance scale of corporate bonds is expected to increase compared to the previous year, driven by refinancing needs for maturing bonds and planned capital expenditures by issuers. On the demand side, end investors such as banks and insurance companies are expected to maintain solid demand for bond investments as part of their asset allocation strategies.

3. Equity Investment Business

In 2025, global markets experienced significant volatility due to tariff measures initiated by Donald Trump, which triggered trade tensions. Meanwhile, the rapid growth of AI-related industries continued to drive strong demand, making supply chain developments a key market focus. Geopolitical changes and evolving policy directions have also continued to influence market dynamics. Looking ahead to 2026, with valuation bases significantly elevated and uncertainties remaining high, greater attention must be paid to risk management in equity investment operations.

4. Credit Business

In 2026, global political and economic conditions are expected to be significantly influenced by geopolitical risks in the Middle East and U.S. tariff policies, resulting in a high degree of uncertainty. Nevertheless, the Company maintains stable long-term relationships with most of its clients, enabling it to sustain a solid level of credit business in a highly competitive domestic market. Building upon its existing credit asset base, the Company will continue to adopt a prudent and sustainable strategy, optimize its customer portfolio, and enhance the yield of credit assets while maintaining effective risk control.

(III) Key performance indicator (KPI)

Unit: NT$ million/%

Item	2025 Business Targets	Result of implementation	Implementation Rate %
Guaranteed yearly average balance of commercial paper	115,500	116,189	101
Yearly average balance of underwriting and repurchase of bills	568,500	574,794	101
Yearly average balance of Repo trading of bills and bonds	212,100	224,539	106
Own capital adequacy ratio (%)	13.00	13.31	102

(IV) Advantageous and disadvantageous factors with regard to developmental outlook

Advantageous factors

(1) ESG awareness continues to mature and is being progressively implemented under policy guidance, leading to sustained growth in ESG-related financing demand.

(2) Liquidity in the money market remains ample, and trading volume in the secondary market is expected to continue expanding.

Disadvantageous factors

(1) Escalating geopolitical risks in the Middle East and evolving U.S. tariff policies have introduced significant uncertainties to the global economy.

(2) Diverging economic conditions across regions, coupled with geopolitical instability, have resulted in a challenging and volatile market environment.

(3) The client base for unsecured commercial paper primarily consists of high-credit-quality large corporates, leading to intense pricing competition with bank lending and underwriting peers.

(4) U.S. Treasury yield movements remain subject to fluctuations driven by inflation and interest rate cut expectations, which are likely to increase market volatility and make bond trading more challenging.

Response Strategies

(1) Commercial papers

①. General guaranteed/guarantee-free bills

a. Expand primary market coverage across industries, diversify the client base for secondary market outright transactions, strengthen competitiveness with other underwriters, and maintain underwriting volume while mitigating interest rate risk.

b. Strictly control credit risk and enhance capital utilization efficiency.

②. FRCP and UCCP

a. Prudently develop FRCP business with careful consideration of interest rate risk.

b. Expand business with clients that continue to have medium- to long-term funding needs to offset the decline in UCCP-related business.

(2) Bonds

①. Outright purchases/sales

a. Closely monitor domestic and international fundamentals, technical indicators, and market information to enhance profitability.

b. Strengthen insights into macroeconomic data and policy trends to optimize entry timing and portfolio allocation.

②. Yielding

a. Invest in high credit quality bonds to effectively control credit risk.

b. Adjust foreign currency bond allocation in a timely manner, expand bond repurchase (RP) channels, diversify foreign currency funding sources, and strictly manage interest rate and liquidity risks.

(3) Equity Investment Business

①. Equity Products

a. Adjust positions in a timely manner based on market information and industry and company research, increase trading frequency, and enhance long-term investment strategies to achieve stable returns.

b. Actively engage with securities firms and industry peers, and participate in industry forums and investor conferences to strengthen fundamental research capabilities.

②. Convertible Corporate Bonds
a. Carefully select investment targets and strictly control credit risk.
b. Continuously monitor credit conditions of invested targets and adjust portfolio structure and strategies accordingly.

(4) Credit Business
①. Continue to deepen relationships with high-quality corporate groups to secure priority drawdowns and new business opportunities, thereby stabilizing the Company's operational foundation.
②. Accelerate the phase-out of low-contribution clients and strengthen the development of syndicated loans and non-real-estate-backed financing to enhance spreads.
③. Prudently select real estate-related lending projects to optimize asset quality and returns.
④. Align with ESG development trends by strengthening the deployment of green commercial paper and related financing business.

IV. Overview of financial product research and business development

(I) Principal financial products and any new business departments added in the most recent two years until the date of publication of the Report, and their scale and profitability
1. The scale and profit of major financial products in the past two years are detailed on pages 70 to 71 in the "Business Overview" section.
2. The Company has not established any new business departments within the most recent two years and up to the date of publication of the Report.

(II) R&D expenditure and results for the most recent two years, and future R&D development plan

R&D expenditures and results for the most recent two years

(1) R&D expenditures
Please refer to page 76-77 of the Report for details on R&D expenditures.

(2) R&D results
①. 2025
a. Established a Performance Evaluation Digital System to streamline operational processes and enhance the efficiency of performance appraisal procedures.
b. Developed a Business Unit Product Inventory Interest Cost System to calculate funding costs for various products handled by business units.
c. Implemented a TWD RS Bond Interest Collection and Reinvestment Transaction System to simplify transaction workflows.

②. 2024
a. To enhance the stability of the BCSS bill custody and settlement instruction XML conversion system, the Company initiated a replacement plan for the existing system.

b. Developed an Automated Confirmation File Preparation System for Transaction Clients to optimize the workflow of electronic confirmation procedures.
c. Developed a Board Agenda Approval Digital System to streamline internal approval processes for Board meeting agendas.

2. Future R&D plan

(1) Continue to evaluate the feasibility of financial innovation initiatives in bills and bond-related businesses.
(2) Continue to enhance online inquiry systems across various business operations to improve operational efficiency.

V. Long-term and Short-term Business Development Plan

(I) Short-term Business Development Plan

1. Short-term Bills and Bonds

(1) Strengthen the management of retained positions and appropriately schedule transaction timing to achieve a balance between returns and risks. In addition, enhance commercial paper flow operations to effectively manage interest rate risk and liquidity risk.
(2) Expand the client base with high credit quality and actively pursue underwriting business opportunities.
(3) Adjust inventory and flow positions in response to market conditions to facilitate the expansion of issuance and trading spreads in commercial paper.
(4) Prudently select bond investment targets to effectively control credit risk.

2. Equity Investment Business

(1) Monitor industry and individual stock trends, enhance research quality, and strengthen collaboration between trading and research teams.
(2) Reinforce company-level research to capture trends in revenue and earnings performance.
(3) Flexibly source convertible bond opportunities in the primary market through various channels.

3. Credit Business

(1) Continue to optimize the customer portfolio to enhance the yield of credit assets.
(2) Prudently select real estate-related lending projects to improve asset quality and returns.
(3) Strengthen the development of syndicated loans and non-real-estate-backed financing to enhance credit asset yields.
(4) Align with ESG development trends by strengthening the deployment of green commercial paper and related financing markets.

(II) Long-term Business Development Plan

1. Short-term Bills and Bonds

(1) Continue to plan for and pursue the introduction of new business lines to expand the scope of operations.
(2) Actively cultivate the secondary market client base to reduce funding costs, expand spreads from bills and bond transactions, and enhance overall operating performance.
(3) Dynamically allocate capital to improve capital utilization efficiency and strengthen risk management systems and frameworks.

2. Equity Investment Business

(1) Strengthen the depth of industry and company research to better capture investment trends.
(2) Closely integrate research analysis with trading execution, enhance long-term investment positioning, and maintain stable profitability.
(3) Flexibly source convertible bond opportunities in the primary market through various channels.

3. Credit Business

(1) Analyze economic and industry trends to identify and develop potential client segments, and expand both the breadth and depth of the customer base.
(2) Optimize customer structure to reduce operating costs and improve spreads and return on assets (ROA).
(3) Cultivate professional talent in credit operations to strengthen overall marketing and business capabilities.
(4) Incorporate sustainable lending concepts and progressively advance toward sustainable finance objectives.

Two. Employees

I. Information about employees for the most recent two years until the date of publication of the annual report

Year		2025	2024	As of March 24, 2026
Number of employees	Staff	156	156	155
	Worker	2	2	2
	Contractor	0	1	0
	Total	158	159	157
Average age (years old)		46.05	46.11	45.94
Average years of service (years)		14.02	14.81	13.98
Academic background	PhD	0.00%	0.00%	0.00%
	Masters	42.41%	41.51%	42.68%
	Bachelors	55.70%	56.60%	55.41%
	High School Degree	1.89%	1.89%	1.91%
	Below High School	0.00%	0.00%	0.00%
Note: Employee numbers do not include Board members

II. Professional certificate and license held by employees for the most recent two years until the date of publication of the annual report, and title of the professional qualification and number of such employees

Year	2025	2024	As of March 24, 2026
Bill finance specialist	150	152	149
Financial Market Fundamentals and Professional Ethics	115	113	115
Senior Securities specialist	95	101	92
Bank Internal Control	90	88	90
Securities specialist	71	75	71
Junior Credit Officer	73	75	74
Trust Business specialist	66	65	67
Futures specialist	45	51	45
Securities, Investment Trust, and Consulting specialist	48	48	47
Financial Planner	36	42	36
Bond Specialist	38	40	38
Life Insurance Agent	25	22	26
Junior Foreign Exchange Personnel	20	17	22

Year	2025	2024	As of March 24, 2026
General Insurance Agent	13	10	14
Stock Affairs Specialist	10	8	10
Asset Securitization Specialist	6	6	6
Corporate Internal Control	3	4	2
Foreign Exchange Trader	4	4	4
Derivatives Sales Representative	6	4	7
Anti-Money Laundering and Counter-Terrorism Financing	4	4	4
Senior Credit Officer	3	3	3
Corporate Governance	3	3	3
Securities Investment Analyst	2	2	2
Personal Risk Manager	1	2	1
Financial Risk Manager (FRM)	1	1	1
Human Resources Manager	2	1	2
Certified Anti-Money Laundering Specialist (CAMS)	1	1	1
Basic Risk Management Competency	2	1	2
Basic Sustainable Development Competency	2	1	3

III. Status of employees' continuing education and training for the most recent two years

To facilitate employee development, the Company has implemented a continuing education subsidy system for certificates/licenses. Additionally, the Company annually sponsors employees to attend training programs organized by domestic professional financial training organizations and conducts various internal training sessions, encompassing orientation and professional development.

Year	Number of trainees	Training hours	Training expenses
2025	2,999 persons	6,670 hours	NT$ 726,000
2024	2,918 persons	5,605 hours	NT$ 591,000
As of March 24, 2026	35 persons	282 hours	NT$ 98,000

Managerial officers' participation in training and education programs related to corporate governance for the most recent year:

Name	Course	Training organization	Hours
Yi-Chang Kan	Carbon Trading Mechanisms and Corporate Management Applications	Chung-Hua Institution for Economic Research	3
	Taiwan’s Energy Policy and New Energy Development	Chung-Hua Institution for Economic Research	3
	Responsibilities and Roles of Corporate Governance Officers	Chinese Corporate Governance Association	3
	Corporate Ethical Management Best Practice Principles and Directors’ Ethical Conduct – From Anti-Money Laundering and Counter-Terrorism Financing Perspectives	Chinese Corporate Governance Association	3
Li-Min Ou	Corporate Ethical Management Best Practice Principles and Directors’ Ethical Conduct – From Anti- Money Laundering and Counter-Terrorism Financing Perspectives	Chinese Corporate Governance Association	3

Three. Corporate Social Responsibilities and Ethics

The Company adheres to a prudent management philosophy and the principle of “taking from society and giving back to society.” Taking into account its own capabilities and the need to balance the interests of both internal and external stakeholders, the Company actively fulfills its corporate social responsibility and upholds ethical conduct. To this end, it has established a Sustainability Committee and adopted the “Sustainable Development Best Practice Principles” as its policy and management framework. Through participation in various social welfare initiatives, protection of consumer rights, commitment to employee care, and fulfillment of environmental responsibilities, the Company strives to achieve sustainable development.

The concrete boosting programs and results are stated as following:

I. Social Engagement

The specific implementation plans and achievements are as follows, with a primary focus on social engagement. The Company’s social engagement initiatives are centered on five key areas: public welfare and charitable care, environmental sustainability, arts and culture, emergency relief, and the promotion of financial and economic development. It continues to promote diverse social engagement and public welfare activities. In 2025, the Company organized and participated in a wide range of initiatives covering public blood donation, environmental protection, care for disadvantaged groups, health promotion, and cultural support. For example, it participated in a large-scale blood donation campaign, successfully mobilizing 121 donors and collecting a total of 182 units of blood. It also organized a mountain trail clean-up activity at Guanyinshan, bringing together 127 employees and their family members to participate in environmental conservation efforts. In addition, through the fundraising campaign “The Power of Love Begins with Me,” the Company raised a total of NT$75,282—combining employee donations and proceeds from a charity bazaar—to purchase essential supplies such as rice, noodles, instant food, and canned goods for donation to the Hualien Family Support Center. The Company has also promoted employee health initiatives, such as weight management programs, and supported local agriculture by purchasing agricultural products from small farmers during the Dragon Boat Festival. Furthermore, it participated in charitable rice donation programs by purchasing locally produced rice from Hualien and donating it to disadvantaged families. In response to a disaster event in Guangfu Township, Hualien, the Company promptly provided emergency relief funding of NT$100,000 and initiated employee fundraising efforts to support affected communities. In addition, the Company supports arts and cultural initiatives through sponsorship of charity concerts, continuing to give back to society through concrete actions.

For further details on the Company’s social engagement activities, please refer to the Sustainability section on the Company’s website, including its sustainability policies, management frameworks, implementation plans, and Sustainability Report: https://www.cbf.com.tw/public/Data/6391124871.pdf

II. Employee Care

To strengthen employee care and create a positive and supportive workplace, the Company established a “Healthy Workplace Declaration” in 2016 as the guiding policy for promoting a healthy work environment. Through regular club activities, sports events, and health promotion seminars, the Company encourages employees to integrate healthy eating habits and exercise into their daily routines.

Taking advantage of the two-month period following the Lunar New Year and the 228 consecutive holidays—traditionally considered an optimal time for weight management—the Company organized a weight management program from April to May. By promoting health knowledge and encouraging appropriate exercise, the program engaged 28 participants, achieving a total weight loss of 89.6 kilograms and a fat reduction of 48.6, thereby contributing to a healthier workplace. In April 2025, the Company also invited employees to participate in a charity

road running event, with a total of 10 employees actively taking part during their personal time. Through such activities, the Company promotes a healthy lifestyle, enhances employees' physical and mental well-being, and strengthens team cohesion.

Since December 2019, the Company has arranged for nursing staff from Cardinal Tien Hospital to provide on-site occupational health services twice a month. In 2025, a total of 24 sessions were conducted. In addition, one session of one-on-one health consultation services by a specialist physician was provided in the first half of the year.

For further details on the Company's employee care initiatives, please refer to the "Sustainability" section of the Company's website—"Happy Workplace"—and the Sustainability Report: https://www.cbf.com.tw/public/Data/612717365771.pdf

III. Environmental Sustainability Policies, Measures, and Achievements

To implement environmental sustainability, the Company has established a foundational energy management plan aimed at improving energy efficiency and reducing energy consumption. Under this framework, the Company conducts annual greenhouse gas (GHG) inventories in accordance with ISO 14064, using the results to track energy and resource usage, set carbon reduction and conservation targets, and enhance overall resource utilization efficiency. Details of the Company's carbon reduction targets are disclosed in the "Climate-Related Information" section of the Annual Report. All of the Company's operating locations are situated within office buildings, and its primary energy and resource consumption consists of electricity, fuel for company vehicles, and employees' daily water usage. In terms of energy efficiency measures and achievements, in 2025 the Company replaced gasoline-powered company vehicles at its Kaohsiung and Taichung branches with hybrid vehicles to reduce carbon emissions. In addition, in alignment with ESG environmental sustainability goals, the Company has evaluated the introduction of renewable energy to reduce reliance on traditional energy sources. Accordingly, it has established a phased target to increase the use of renewable energy, aiming to reach 50% usage by 2030. The Company began adopting renewable energy (green electricity) in 2024, with supply commencing in August of that year. Total renewable energy usage amounted to 85,000 kWh in 2024, accounting for 15% of total electricity consumption across all operating locations, and increased to 118,000 kWh in 2025, representing 20% of total electricity usage. In addition, 85 and 118 renewable energy certificates were issued by the national renewable energy certification authority (T-REC), achieving the annual renewable energy usage targets. The Company also requires its suppliers to comply with relevant environmental standards and promotes green procurement practices to reduce environmental impact.

To implement environmental sustainability, the Company requires its suppliers to comply with relevant standards in environmental protection, safety, and hygiene. In 2023, the Company introduced the ISO 14001 Environmental Management System certification and has continued to maintain compliance with ISO 14001 standards. The current certification is valid from December 1, 2025 to December 12, 2026, ensuring that while pursuing operational and financial performance, the Company also strictly adheres to environmental management principles and jointly promotes corporate social responsibility (please refer to the sections on Corporate Governance / Ethical Management / Supplier Management).

In recent years, global climate change has made greenhouse gas (GHG) management and reduction a key international concern. The Company has voluntarily conducted inventories of unverified GHG emission sources to better understand its emissions profile. In 2025, total GHG emissions amounted to 297.687 metric tons, including 52.5892 metric tons of direct emissions and 245.0978 metric tons of energy indirect emissions. Based on the results of these inventories, the Company has integrated them into the ISO 14001 Environmental Management System to implement various conservation measures in daily operations. These include targets for 2025 to reduce per capita electricity consumption by 3%, per capita water usage by 2%, and per capita waste generation by 2%, as well as achieving 50% renewable energy usage by 2030 (with 20% already achieved in 2025).

For detailed information on greenhouse gas emissions in recent years, please refer to the Company’s Sustainability Report.

The Company’s energy-saving and carbon reduction measures are as follows:

Energy Saving and Carbon Reduction Measures

(1) Reduce the number of lighting fixtures in public areas and replace them with LED lighting.
(2) Require employees to turn off lights during lunch breaks and shut down personal computers after work.
(3) Set air-conditioning temperature to 26°C during the summer.
(4) Turn off lighting during lunch hours to achieve full blackout.
(5) Replace certain fluorescent lighting in the underground parking area with LED lighting.
(6) Conduct daily monitoring of office indoor air quality; indoor air quality monitors are installed in different zones to provide 24-hour monitoring. In case of abnormal conditions, the building’s central control system will promptly notify the Company for corrective action.
(7) Perform regular cleaning and maintenance of office air-conditioning systems.
(8) Replace water dispenser filters regularly to ensure drinking water hygiene.
(9) Implement waste sorting and resource recycling practices.
(10) Gradually increase the use of renewable energy, with a target of reaching 50% green energy usage by 2030.

Water Conservation Measures

(1) Install sensor-based faucets in restrooms.
(2) Reduce water flow in sensor-operated urinals in men’s restrooms.
(3) Adjust water flow at pantry sinks and install water-saving valves to reduce water consumption.

Fuel Reduction Measures

Replace or lease company vehicles with hybrid vehicles to reduce carbon emissions.

Paper Reduction Measures

(1) Since mid-October 2019, copier usage has been controlled through employee ID card authentication prior to operation to promote paper conservation.
(2) Digitize all personnel documents and client visit records to reduce paper usage.
(3) Present meeting materials electronically or through decision-support systems.
(4) Implement a fully paperless electronic document system.
(5) Conduct accounting voucher reviews online and retain records electronically to reduce paper consumption.
(6) Present meeting materials primarily through digital presentations, and distribute interest rate reports and credit review materials via email.
(7) Actively promote paperless practices across all operations.

Use of Video Conferencing to Reduce Travel Costs

(1) Asset and Liability Management Committee meetings (held monthly).
(2) Morning meetings between the Fixed Income Department at headquarters and five branch offices (held three times per week).
(3) Performance evaluation meetings between headquarters and branch offices (held monthly).
(4) Virtual New Year gatherings between headquarters and branch offices.
(5) Retirement ceremonies for management personnel.

Four. Number of full-time non-managerial employees, their average and median salary, and the difference from the previous year

Item	2025	2024	Difference
Number of Full-Time Non-Managerial Employees (persons)	133	140	-7
Average Salary of Full-Time Non-Managerial Employees (NT$ thousand)	1,690	1,571	+119
Average Salary of Male Full-Time Non-Managerial Employees (NT$ thousand)	1,741	N/A	N/A
Average Salary of Female Full-Time Non-Managerial Employees (NT$ thousand)	1,567	N/A	N/A
Median Salary of Full-Time Non-Managerial Employees (NT$ thousand)	1,497	1,463	+34
Median Salary of Male Full-Time Non-Managerial Employees (NT$ thousand)	1,591	N/A	N/A
Median Salary of Female Full-Time Non-Managerial Employees (NT$ thousand)	1,384	N/A	N/A

Five. Information Equipment

I. Configuration and maintenance of the software and hardware of main information system

(I) The business trading system (including NTD/foreign currency bills system, NTD/foreign currency bonds system, NTD/foreign currency capital system, NTD/foreign currency derivatives system, fund and stock system, credit system, NTD/foreign currency accounting system, NTD/foreign currency risk/liquidity risk management system, payroll system, anti-money laundering system and CRS system, etc.) is installed on the AIX RS6000 server and is self-managed and maintained by the Company.

(II) The Company's official website, digital learning platform, internal portal, human resources system, electronic document management system, electronic reporting system, customer relationship management (CRM) system, credit approval workflow system, business intelligence (BI) decision support system, custody bag access management system, bond certificate management system, anti-money laundering (AML) KYC/CRS review system, regulatory compliance system, e-service request system, self-assessment system, Board of Directors and functional committees proposal workflow system, and employee performance evaluation system are all deployed on Windows-based servers and are maintained and managed internally by the Company.

(III) The database systems are individually built on AIX RS6000 and Windows servers, and are self-managed and maintained.

(IV) The OTC and other related transaction systems, as well as the OTC derivatives trading system, are built on Linux servers, and are also self-managed and maintained.

(V) The interbank remittance system (built on Linux servers), CBC Interbank Funds Transfer System (built on Linux servers), and convertible bond system (built on AIX RS6000 servers) are all outsourced development systems. They are self-managed and maintained through outsourced service providers.

(VI) The Company's information security systems and network infrastructure include internal and external next-generation firewalls, a spam filtering system, antivirus systems, resource management systems, a data loss prevention (DLP) system, web security filtering systems, endpoint control systems, an HDPS Commvault backup system, a privileged access management (PAM) system, an email advanced persistent threat (APT) protection system (ESG), a VPN firewall log analysis system, an endpoint detection and response (EDR) system (newly upgraded in 2025), an outbound email automatic encryption system (implemented in 2025), and network switch equipment. These systems are managed internally by the Company, with maintenance services outsourced to external vendors.

II. Future development and purchase plan

(I) To comply with the self-regulatory requirements for information security protection applicable to bills finance companies, and to address vulnerabilities identified in penetration testing of the Company's official website, the Company plans to implement a Web Application Firewall (WAF).

(II) To further strengthen information security, the Company plans to implement a website anti-tampering system to prevent unauthorized intrusion and modification of its official website.

(III) To enhance the performance of transaction processing systems and achieve energy-saving and carbon reduction objectives for the data center, the Company plans to replace its existing AIX servers with newer infrastructure.

Six. Information and Communication Security Management

I. Information and Communication Security Management Strategy and Structure

(I) Information and Communication Safety Risk Management Structure

As is required by Article 38-1 Paragraph 1 of the Financial Supervisory Commission's "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," banking businesses shall assign a manager ranked vice president or above or an individual with equivalent power to serve concurrently as the chief information security officer, who shall oversee the implementation and coordination of the information security policy and resource allocation. During the 8th meeting of the 15th Board of Directors held in February of 2022, it was resolved to appoint the President concurrently as the Chief Information Security Officer of the Company.

In accordance with the provision of the Financial Supervisory Commission's "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," Article 38-1, Paragraph 1, Subparagraph 1, regarding the interpretation of information security by securities finance companies, the Company should appoint an information security officer and information security personnel. It should ensure that the officer and personnel in charge of information security do not concurrently hold other positions with conflicting interests, except for information-related duties. Since the 2019, the head of the IT Department has been appointed as the Company's Information Security Officer, and the personnel of the IT Department's Systems Management Team have been designated as the Company's information security personnel. They are responsible for planning, monitoring, and executing the Company's information security management operations, effectively implementing the Company's information security plans and security measures.

As is required by Article 38-1 Paragraph 3 and Article 27 Paragraph 1 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," the report prepared on the overall implementation status of information security from the preceding year is included as the part of the declarable attachments to the "Internal Control System Declaration" jointly signed and issued by the Chairman, President, Chief Auditor, and Information Security Officer. The 2025 "Internal Control System Declaration" was approved during the 23rd meeting of the 16th Board of Directors in March 16, 2026.

(II) Information and Communication Security Policy

To enhance the information security, the Company has referred to the "Regulations Governing the Self Discipline of the Bills Finance Industry in Information Security" formulated by the Taiwan Bills Finance Association.

In January 2019, the Company's Board of Directors passed the "Information Security Policy of China Bills Finance Corporation" (available for review on the official website www.cbf.com.tw, under Home > Corporate Governance > Information Security Policy). This policy requires all employees to strictly adhere to the confidentiality regulations and follow the Company's information security-related norms. Additionally, the Company regularly reviews and adjusts its information security policy in accordance with revisions to the "Self-discipline Regulations for Information Security Protection of Securities Regulations Governing the Self Discipline of the Bills Finance Industry in Information Security."

II. Information and Communication Risk and Countermeasures:

The Company classifies information systems into two categories: operational and non-operational, based on the importance of information assets and their impact on operational activities. In order to promptly detect security threats and vulnerabilities early on, the Company implements and strengthens relevant technical and managerial control measures to enhance the security protection capabilities of networks and information systems. The following methods are adopted for information security risk assessment and response:

1. Review existing information structure:

(1) Review the information equipment structure, adequacy of the security management rules, and any information security risk discovered in the information systems or PC shall be solved in the following manners:

a. Strengthen the security of critical information systems by adjusting the rules of internal and external next-generation firewall systems.
b. Prevent data leakage by refining the rules of the Data Loss Prevention (DLP) system and the outbound email automatic encryption system (implemented in 2025), and enhance web security by adjusting the rules of the web filtering system to prevent employees from accessing potentially harmful websites.
c. Adjust the rules of the spam filtering system to block malicious emails containing malware sent by hackers.
d. Utilize the email Advanced Persistent Threat (APT) protection system (ESG) to filter and block malicious emails, preventing cyberattacks via email and enhancing email security.
e. Prevent employees from connecting unauthorized personal devices through the endpoint control system, thereby reducing the risk of data leakage.
f. Continuously update antivirus definitions for all information systems to prevent virus and malware infections.
g. Utilize the resource management system to control the use of USB storage devices on employee computers, including restricting write access to prevent data leakage and limiting read access to authorized personnel such as department heads and senior executives. In addition, administrative privileges are revoked from user accounts to prevent unauthorized software installation and reduce the risk of malware intrusion into the Company's information systems.
h. Deploy an Endpoint Detection and Response (EDR) system (upgraded in 2025) to defend against APT and malware attacks by installing EDR agents on endpoint devices for behavioral analysis, ensuring that all endpoint devices remain secure.

(2) The Company regularly reviews the risk of system failures in critical information systems, evaluates the potential impact and risk tolerance, and establishes recovery objectives, including the maximum tolerable downtime, minimum recovery time objectives, and appropriate backup and contingency plans.

2. Review on network activities

(1) Review access logs of networks and information systems, and verify whether user account privileges comply with the Company's information security policies.

(2) Verify the accuracy of security control rule configurations, regularly review security incident monitoring logs, and periodically test the effectiveness of information security protection systems.

(3) Utilize internal and external firewalls to monitor for abnormal external network connections to the Company's information systems, and analyze whether such connections are linked to malicious relay servers. If identified, firewall rules are adjusted to block such connections.

3. Inspection of Network Equipment, Servers, and Endpoint Devices

(1) Conduct vulnerability scans on the Company's network and information systems twice annually. Based on the identified vulnerabilities, remediation actions such as patching or strengthening protective measures are implemented to reduce overall cybersecurity risks.

(2) Perform annual assessments of password complexity for system login accounts through vulnerability scanning. All account credentials are verified to comply with the Company's password complexity requirements. In addition, administrator accounts for critical systems are centrally managed through a privileged access management system, with periodic password changes enforced to enhance security.

(3) Conduct regular cybersecurity health assessments to evaluate the overall security posture of the Company's network, systems, and endpoints. These assessments include malware scanning of critical servers and monitoring and analysis of suspicious activities within the internal network, in order to identify potential vulnerabilities and strengthen the Company's overall cybersecurity defense capabilities.

4. External Website Security Testing

(1) Conduct annual penetration testing on the Company's official website to identify and remediate potential hidden vulnerabilities.

(2) Regularly review directory structures, access control settings, and access logs of the Company's external websites to prevent unauthorized intrusion and website defacement. To enhance browsing security, the Company has migrated its external website to HTTPS.

5. Security Configuration Review

(1) Review the "Password Policy" and "Account Lockout Policy" settings of the Company's domain controller (DC) system, confirming that such configurations comply with the Company's information security requirements.

(2) Continuously monitor firewall operations and connection rules, and regularly review firewall logs to assess potential cybersecurity risks associated with system connectivity. Where risks are identified, firewall rules are adjusted accordingly to strengthen protection.

(3) Revoke administrative privileges from employee user accounts on personal computers to prevent unauthorized software installation, thereby reducing the risk of installing unlicensed or malicious software and minimizing the likelihood of unauthorized system intrusion.

(4) Manage privileged accounts of critical information systems through a privileged access management (PAM) system to prevent misuse and unauthorized access. The system also maintains audit logs of privileged account activities to meet internal control and regulatory compliance requirements.

(5) Utilize an asset management system, along with periodic vulnerability scanning and cybersecurity health assessments, to review the update status of operating systems and application software on servers and endpoint devices, and to evaluate and implement necessary system updates.

III. Resources Invested in Information Security Management and Implementation Status

In response to the continuously evolving and increasingly sophisticated global cybersecurity threats, the Company not only relies on its existing security infrastructure to safeguard its information systems, but also continuously evaluates and upgrades or implements new security solutions to enhance its overall cybersecurity capabilities. These efforts aim to protect the Company's information assets from various threats and ensure business continuity. The implementation status of information security initiatives in 2025 is as follows:

Ongoing engagement of external cybersecurity service providers to conduct security testing and simulation exercises. The implementation results for 2025 are as follows:

(1) Company-wide vulnerability scanning of computer systems was conducted and completed in June and November 2025. The number of identified vulnerabilities decreased compared to 2024, indicating a gradual reduction in the Company's cybersecurity risk exposure.
(2) Penetration testing targeting the Company's official website and systems within the DMZ network segment was completed in August 2025. All critical vulnerabilities identified during the testing were remediated by the end of February 2026. No successful cyber intrusion incidents affecting the Company's official website were recorded in 2025.
(3) A cybersecurity health assessment was conducted and completed in October 2025. Most of the findings and recommendations identified in the assessment report had been addressed by March 2026, with only one remaining item scheduled for remediation by the end of June 2026.
(4) Two company-wide phishing simulation exercises (social engineering email tests) were conducted in May-June and November-December 2025. The results demonstrated strong performance, with the Company recognized as achieving an excellent level of protection.

To enhance the cybersecurity capabilities of information security personnel and strengthen overall employee awareness, the Company continues to provide the following information security training programs:

(1) External Training for Information Security Personnel

The Company has appointed one Chief Information Security Officer (CISO) and four information security personnel. In 2025, they completed a total of 15 hours of professional training and obtained official certificates of completion for in-service cybersecurity training. This complies with regulatory requirements that information security officers and personnel must complete at least 15 hours of professional cybersecurity training annually. All required filings have also been completed within the prescribed deadlines

(2) Information Security Awareness Training for All Employees

Cybersecurity awareness training sessions were conducted in May 2025, with a duration of 1.5 hours and a total of 153 participants.

Another session was conducted in November 2025, also lasting 1.5 hours, with 156 participants.

Regular Reporting of Information Security Implementation to the Board of Directors

Date	Category	Description
March 23, 2026	19th Meeting of the 5th Audit Committee	The overall information security implementation report for 2025 was presented to the independent directors as part of the Internal Audit Division’s report on the execution of internal controls for 2025.
March 24, 2026	23rd Meeting of the 16th Board of Directors	The overall information security implementation report for 2025 was presented to all directors as part of the Internal Audit Division’s report on the execution of internal controls for 2025.

IV. Material Information Security Incidents:

The Company did not experience any material cybersecurity incidents in 2025, 2024, or up to the date of publication of this report.

Seven. Labor Relationships

I. Current major labor-management collective bargaining agreements and status of implementation

(I) Employee welfare and benefits

The Company's employee benefit measures consist of those provided by the Company and Employee Welfare Committee respectively, which are stated as following:

1. Provided by the Company

(1) Insurance: In addition to the labor insurance and national health insurance, the Company also maintains the term group life insurance for the employees and their parents, spouses and underage children.

(2) Meal allowance.

(3) Teambuilding activities and health checkup for employees.

2. Provided by the Employee Welfare Committee

The Employee Welfare Committee was established in December 1978, which provides various benefits, allowances, and subsidies to employees’ clubs, and organizes various activities subject to the status of budget. The subsidies consist of gifts for three major festivals, birthday, marriage, childbirth, bereavement, retirement, social clubs, arts appreciation, and critical diseases and injuries, etc..

(II) Working environment and employee occupational safety protection measures

Execute the visitors’ access registration and control, designate dedicated personnel to clean up the environment at the office premises, replace the filter cartridge per quarter, and conduct water quality inspection periodically.
The elevators and fire extinguishers undergo regular maintenance, and monthly inspections are conducted on sprinklers, stairwell lighting, and other fire-fighting equipment such as evacuation routes. Additionally, every year, qualified fire safety companies are commissioned to report on the maintenance status of these facilities, and a biennial public safety inspection of the building is conducted. These procedures have all received approval upon review by the relevant authorities.
Staff fire drills are conducted semiannually.
Environmental disinfection and cleaning are carried out regularly every two months.
Contracted medical consultation services are provided twice a month.
Online occupational health and safety training are conducted annually.

(III) Retirement Pension System

The Company establishes the employee pension regulations. The pension shall be payable to the employees pursuant to the regulations when the employees apply for retirement.

From July 1999 to December 2004, general employees contributed 7.52% of their total monthly salary to the "Retirement Reserve Fund." Starting from 2005, this contribution decreased to 7% of the total monthly salary. These funds are entrusted to the Labor Pension Fund Supervisory Committee for safekeeping and are deposited in the Bank of Taiwan to generate interest, providing retirement benefits under the old pension system. Additionally, starting from July 2005, those opting for the new labor retirement system have 6% of their monthly salary contributed by the Company, deposited in their name with the Bureau of Labor Insurance.

Employees contribute to the "Retirement Fund" every month, and retirement expenses are recognized, managed by the Labor Pension Fund Supervisory Committee.

(IV) Employee Code of Ethical Conduct

According to the Labor Standards Act and related laws, the Company establishes its work rules, instructions to employees' service, Code of Ethics, Procedure for Ethical Management and Guidelines for Conduct, and principles to be followed by the sales personnel remuneration system requiring that the employees should comply with the Company's regulations and rules and abide by the management's reasonable direction. The management shall direct employees friendly and perform the performance assessment in line with the work objectives strictly. The management and subordinates or co-workers shall respect each other, uphold honesty and integrity, act rigorously, work diligently, abandon bad habits, maintain the Company's corporate identity, and perform their duties with due diligence; comply with labor laws and the Company's regulations to maintain the safety and sanitation of the workplace and its surrounding environments and prevent theft, fire or other natural calamities. The Company upholds the core management philosophy for "Gratitude, Contentment and Improvement", and all of the employees shall follow the self-discipline principles and value the business ethics.

(V) Other major collective bargaining agreements

The Company established the labor-management council in accordance with the Regulations Governing Implementation of Labor-Management Council Meetings on September 17, 2015. The management and labors delegate five representatives respectively to negotiate with each other in the spirit of teamwork and cooperation at the labor-management meeting to strengthen the management-labor relationship, promote the management-labor cooperation, and also discuss about such motions as employment terms and conditions, employees' benefits and upgrading of work efficiency.

II. There have been no losses incurred due to labor disputes for the most recent year and as of the date of publication of this Report.

None.

Eight. Material Contracts

The Company is a bills finance company engaged in transactions with its customers in accordance with related laws and the Company's internal regulations. Other than the guarantee, certification and underwriting contracts related to its operations, the Company never concludes any supply contracts or technical cooperation contracts, and has no engineering contracts still surviving. All of the important contracts of the Company refer to lease contracts which are excluded from any restrictive clauses and render no material adverse effect to the Company's business.

Nature of contract	Parties	Start and end date of contract	Key summary	Restrictive clauses
Lease	Leaser: O-Bank Lessee: Main Office of China Bills Finance Corporation	Jan 1, 2025 – Dec 31, 2027	1. Area: 4F., No.99, Section 2, Tiding Boulevard, Neihu District, Twaipei City, 679.85 ping in total 2. Monthly rent of NTD 1,101,364	None
Lease	Lessor: Ming Tai Insurance Co., Ltd. (Note) Lessee: Banqiao Branch of China Bills Finance Corporation	Oct 16, 2022 – Oct 15, 2025	1. Area: 3rd Floor, No. 51, Section 1, Wenhua Road, Banqiao District, New Taipei City. Total area: 108.17 ping. 2. Monthly rent of NTD 147,000	None
Lease	Lessor: San Hui Construction Co., Ltd. Lessee: China Bills Finance Corporation (Banqiao Branch) Oct. 16, 2025 – Oct. 31, 2028	Oct. 16, 2025 – Oct. 31, 2028	1. Area: 3rd Floor, No. 51, Section 1, Wenhua Road, Banqiao District, New Taipei City. Total area: 108.17 ping. 2. Monthly rent: NT$151,410 (annual increase of 2%-3%). 3. Monthly parking fee: NT$8,000.	None

Note: Ownership of the property originally held by Ming Tai Insurance Co., Ltd. was fully transferred to San Hui Construction Co., Ltd. on December 2, 2022.

Nine. Intellectual Property Management Plan and Implementation Status

I. Intellectual Property Management Plan

The Company adopts "Gratitude, Prudence, and Continuous Improvement" as its core business philosophy, aiming to create greater value for customers, shareholders, and employees, while cherishing existing resources, enhancing operational efficiency, and pursuing sustainable development. The Company recognizes that a sound intellectual property (IP) management system is an essential component of sustainable development and an important mechanism for mitigating operational risks. Accordingly, taking into account its scale and business characteristics, the Company has established an intellectual property management plan aligned with its operational objectives.

(I) Trademarks

To safeguard the Company's corporate image and trademark rights, the Administration Department is responsible for maintaining the validity of the Company's trademarks. In addition, all uses of the Company's trademarks must comply with internal guidelines governing advertising, business solicitation, and promotional activities.

(II) Copyrights

The Company has established copyright provisions in employment agreements, stipulating that any information or works developed by employees during their employment, using the Company's resources or experience and applicable to business operations or commercialization, shall be owned or utilized by the Company.
When procuring computer software, the Company requires vendors to provide proof of lawful licensing, and periodically reviews software usage on employees' computers to ensure compliance.

(III) Trade Secrets

The Company has entered into confidentiality agreements with employees, stipulating that during and after employment, employees shall not disclose or improperly use the Company's trade secrets.

(IV) Risk Management of Intellectual Property

Due to the nature and scale of its operations, the Company possesses relatively limited proprietary intellectual property (for example, the Company has not applied for patents). However, potential risks of intellectual property infringement may still arise during business operations. To mitigate such risks, the Company has adopted the following measures:

Reviewing and maintaining internal policies related to intellectual property to ensure compliance with applicable laws and regulations.
Conducting regular training programs to enhance employees' awareness of intellectual property protection through fundamental concepts and practical case studies.

II. Implementation Status

(I) Review of Intellectual Property Management Implementation

During the reporting year, the Company conducted a comprehensive review of the implementation of its intellectual property management framework. The results are as follows:

The Company's trademarks remain valid, and their use complies with the internal guidelines governing advertising, business solicitation, and promotional activities.
All employees have executed agreements covering copyright and trade secret protection.
No unauthorized software has been used on employee computer systems.
No incidents of infringement of third-party intellectual property rights occurred during the year.

(II) Intellectual Property-Related Policies and Regulations

Information Security Policy: To enhance information security and confidentiality, contracts for outsourced information services explicitly stipulate vendors' information security responsibilities and confidentiality obligations.
Code of Ethical Conduct: Each department is responsible for the management, preservation, and confidentiality of intellectual property under its purview. Employees are also required to comply with relevant intellectual property regulations in the course of performing their duties.
Ethical Conduct Guidelines: Employees are obligated to maintain the confidentiality of information relating to both the Company and its clients.
Guidelines for Advertising, Business Solicitation, and Promotional Activities: The use of the Company's trademarks must comply with these guidelines, and employees are prohibited from misusing or adopting identical or similar trademarks to those registered by others in a manner that may cause consumer confusion.

(III) Intellectual Property Portfolio (as of the end of 2025)

Trademarks: 1 registered item.

(IV) Training and Awareness

In August 2025, the Company conducted a company-wide online training session on intellectual property awareness.

(V) Board Approval

This intellectual property management plan and its implementation status were approved by the Board of Directors at the 18th meeting of the 16th Board held on October 31, 2025.

Review and analysis of financial condition, financial performance and risk management

One. Financial Condition

Unit: NT$ thousand

Year\Item	December 31, 2025	December 31, 2024	Diff		Explanation of significant changes
	Amount	Amount	Amount	%
Cash and cash equivalents, due from the Central Bank and call loans to banks	368,638	877,603	(508,965)	(58)	Note 1
Financial assets at fair value through profit or loss	152,103,636	150,478,933	1,624,703	1
Financial assets at fair value through other comprehensive income	102,976,196	94,715,735	8,260,461	9
Debt instrument investments measured at amortized cost	2,691,954	2,190,041	501,913	23	Note 2
Securities purchased under resell agreements	4,306,136	1,955,700	2,350,436	120	Note 3
Receivables - net	1,347,172	988,667	358,505	36	Note 4
Current tax assets	331,173	436,938	(105,765)	(24)	Note 5
Other financial assets - net	120,797	79,745	41,052	51
Property and equipment - net	155,412	155,425	(13)	0
Right-of-use assets - net	31,066	2,840	28,226	994
Deferred tax assets - net	82,112	246,561	(164,449)	(67)	Note 6
Other assets	607,563	598,721	8,842	1
Total Assets	265,121,855	252,726,909	12,394,946	5
Call loans from banks and overdrafts on banks	29,965,143	21,105,772	8,859,371	42	Note 7
Commercial paper issued - net	None	None	None	-
Financial liabilities at fair value through profit or loss	13,360	23,796	(10,436)	(44)
Reverse repurchase agreements and bond liabilities	204,299,001	204,003,192	295,809	0
Accounts payable	664,458	617,981	46,477	8
Current tax liabilities	71,901	None	71,901	Not applicable
Other financial liabilities	None	None	None	-
Reserve for liabilities	1,586,500	1,401,077	185,423	13
Lease liabilities	31,231	2,886	28,345	982
Deferred tax liabilities	48,366	49,002	(636)	(1)
Other liabilities	611,447	301,039	310,408	103	Note 8
Total Liabilities	237,291,407	227,504,745	9,786,662	4
Capital stock	13,429,600	13,429,600	0	-
Capital surplus	16,737	15,222	1,515	10
Retained earnings	13,106,127	12,464,477	641,650	5
Other equity	1,277,984	(687,135)	1,965,119	286	Note 9
Total equity	27,830,448	25,222,164	2,608,284	10

Description of changes: (Changes exceeding 20% and amounts exceeding NT$100 million)
Note 1: Decrease in cash and cash equivalents, deposits with the central bank, and placements with banks: Primarily due to lower remaining funds after fund allocation during the current period.
Note 2: Increase in debt instrument investments measured at amortized cost: Primarily due to an increase in pledged collateral with banks during the current period.
Note 3: Increase in reverse repurchase agreements for bills and bonds: Mainly attributable to increased demand for underlying securities and higher trading volume in bond repo transactions during the current period.
Note 4: Increase in receivables-net: Mainly attributable to an increase in bond receivables during the current period.
Note 5: Decrease in current income tax assets: Mainly attributable to a decrease in tax refund receivables during the current period.
Note 6: Decrease in deferred income tax assets: Mainly attributable to a reduction in valuation losses on FVOCI positions during the current period.

Note 7: Increase in due to banks and call loans from banks:
Mainly attributable to more diversified use of funding during the current period.

Note 8: Increase in other liabilities: Mainly attributable to an increase in temporary receipts during the current period.

Note 9: Increase in other equity: Mainly attributable to an increase in bond valuation gains during the current period.

Two. Financial Performance

Unit: NT$ thousand

Item Year	2025	2024	Diff		Explanation of significant changes
	Amount	Amount	Amount	%
Total net revenues	2,978,575	2,238,530	740,045	33	Note 1
(Provisions) Reversal	(108,857)	(27,899)	80,958	290	Note 2
Operating expenses	(614,291)	(557,323)	56,968	10
Profit before income tax	2,255,427	1,653,308	602,119	36
Income tax	(459,348)	(278,973)	180,375	65	Note 3
Net Income	1,796,079	1,374,335	421,744	31

Description of changes: (Changes exceed 20%)
Note 1: Mainly attributable to an increase in income from bills and bond investments during the current period.
Note 2: Mainly attributable to an increase in the provision for guarantee liability reserves during the current period.
Note 3: Mainly attributable to increased profitability during the current period, resulting in higher income tax expenses.

Three. Cash Flows

I. Liquidity analysis for the most recent year

Item Year	2025	2024	Increase (Decrease) (%)
Cash flow ratio (%) (Note)	Not applicable	Not applicable	Not applicable
Cash flow adequacy ratio (%)	Not applicable	Not applicable	Not applicable

Description of changes:
Note: Net cash outflow from operating activities in 2025; therefore, not applicable.

II. Cash flow liquidity analysis for the coming year

Unit: NT$ thousand

Beginning cash balance①	Net cash flow from operating activities for the year ②	Total cash inflow (outflow) for the year ③	Cash surplus (shortfall) ① + ② + ③	Remedial measures for projected cash shortfall
				Investment plans	Financing plans
368,638	2,048,703	(2,108,103)	309,238	None	None

Analysis of changes in cash flow for 2026:
(1) Operating activities: Net cash inflow of NT$2,048,703 thousand, primarily due to cash inflows resulting from an increase in repurchase agreements.
(2) Cash inflow (outflow): Net cash outflow of NT$2,108,103 thousand, primarily resulting from the distribution of cash dividends.
Remedial measures for projected cash shortfall and liquidity analysis: None.

Four. Impact of major capital expenditures in the most recent year on the Company's financial and business operations

None.

Five. Investment policy in the most recent year, main causes of investment profits or losses, improvement plans, and investment plans for the coming year

I. Investment policy and investment plans for the coming year

The Company has established its investment policy, the “Regulations Governing Investments by China Bills Finance Corporation,” in accordance with the “Regulations Governing Investments by Bills Finance Companies,” with the primary objective of aligning with government economic development plans and financial policies. The Company currently has no plans for new investments in the coming year.

II. Main causes of investment profits or losses and improvement plans

Benefiting from a favorable economic environment, all investee companies, except for Core Pacific City, delivered solid operating performance. In 2025, the Company received cash dividends of NT$11,710 thousand from Taiwan Depository & Clearing Corporation, NT$6,998 thousand from Taiwan Futures Exchange, and NT$3,900 thousand from Taiwan Asset Management Corporation, reflecting satisfactory investment returns. Going forward, the Company will continue to implement its investment policies while strengthening equity investment management.

Six. Risk management

I. Risk management structure and policy

(I) Risk management structure

The Company’s risk management framework is established based on the Credit Policy and the Risk Management Policy for Trading Activities. The Board of Directors serves as the highest decision-making body for risk management and is responsible for approving the Company’s risk management policies and framework, fostering a sound risk management culture, and assuming ultimate responsibility for overall risk management. The President is responsible for implementing the risk management policies and is accountable to the Board of Directors. The Risk Management Department is responsible for reviewing and monitoring risk control operations, and regularly reports to senior management and the Board of Directors. It oversees the management of credit, market, and liquidity risks. Under the Department, a Risk Control Division is established to handle integrated risk management functions. The Legal and Compliance Department is responsible for the collection and consolidation of applicable laws and regulations, as well as the drafting, review, and management of contracts and legal matters. It also oversees the planning, implementation, and management of the compliance system to control legal risks. Risk management policies are approved by the Board of Directors and are designed to maximize shareholders’ value within the Company’s risk tolerance. Subject to applicable laws and regulations as well as internal policies, the management submits proposed risk limits and stop-loss limits based on business categories and annual budget targets. Such limits are implemented upon approval by the Board of Directors or authorized personnel.

To ensure the safety, liquidity, and profitability of financial assets and liabilities, the Company has established the Business Review Committee and the Asset and Liability Management Committee. In principle, the Business Review Committee convenes on a weekly basis, while the Asset and Liability Management Committee convenes monthly. In addition, to prudently evaluate equity investments not held for short-term trading, the Company has established the Investment Review Committee, which is responsible for reviewing such investments. In principle, this Committee also convenes on a weekly basis.

Business Review Committee primarily responsible for:

Reviewing various credit risk matters, including guarantees or endorsements of promissory notes or bills, purchase of commercial paper, underwriting of commercial paper without guarantee, counterparty credit limits for derivatives transactions, and limits for non-government bond investments.
Reviewing internal credit-related policies.
Other credit risk-related matters.

Asset and Liability Management Committee primarily responsible for:

Reviewing the Company's asset and liability portfolio and management policies (excluding credit-related businesses).
Monitoring risk exposure positions of financial assets and liabilities.
Assessing future interest rate trends and financial market developments.
Evaluating domestic and international economic conditions and funding positions.
Other matters related to asset and liability management.

Investment Review Committee primarily responsible for:

Reviewing equity investments not held for short-term trading.
Other equity investment-related matters as assigned by senior management.

II. Qualitative and quantitative information on various risks

(I) Credit risk management system and capital requirements

Credit risk management system 2025

Item	Content
1. Credit risk strategy, objectives, policies and processes	The Company's credit risk management is established in accordance with credit policies formulated based on applicable laws and regulations of the relevant regulatory authorities. Such policies are designed with due consideration to safety, liquidity, profitability, government policy objectives, and business growth, and are implemented through relevant policies and procedures (see Figure 1).
2. Credit risk management organization and structure	(1) Credit Facilities:For credit facilities, business units first engage with customers. Each credit unit conducts a comprehensive assessment and credit review based on the customer's financial condition, business profile, and collateral. Cases that meet the underwriting criteria are approved by the unit supervisor and then submitted to the Credit Review Division of the Risk Management Department for review comments. Each case is subsequently submitted to the Business Review Committee or the Board of Directors for approval.(2) Non-Government Bonds and Derivatives Counterparties:A.Prior to investing in non-government bonds, business units shall apply for investment limits in accordance with the Company's internal regulations governing bond investments and the relevant authorization levels.B.Limits for individual counterparties in derivatives transactions shall be reviewed by the Business Review Committee and approved by the Board of Directors.(3) Underwriting of Commercial Paper without Guarantee:Prior to underwriting commercial paper without guarantee, business units shall follow credit procedures similar to those for credit facilities, including annual credit review, proposal submission, case review, and committee approval, and apply for risk exposure limits on a case-by-case basis.
3. Scope and characteristics of credit risk reporting and measurement systems	The scope of credit risk reporting and measurement covers potential risks arising from a debtor's or counterparty's failure to perform contractual obligations or to repay principal and interest. In addition to regularly reporting credit exposures by collateral, industry sector, single obligor, and related parties to management, the Company also compiles various business statistics and risk management reports on exposures to individual debtors and counterparties for management review. Such information is reported to the competent authorities on a regular basis in accordance with applicable regulations.
4. Policies for credit risk mitigation and hedging, and procedures for monitoring the ongoing effectiveness of risk mitigation measures	The Company has established the Guidelines for Credit Review and Reassessment to continuously monitor changes in borrowers' credit conditions and strengthen post-lending management. The Risk Management Department and business units regularly provide credit rating information and other relevant credit data on bill and bond issuers and guarantors, equity instrument issuers, and counterparties to derivatives transactions, for the purpose of assessing and monitoring credit risk exposures. In addition, the Risk Management Department establishes credit limits for various types of transactions by individual financial institutions, single enterprises, and corporate groups. Such limits are subject to approval by the President and are monitored and controlled accordingly.
5. Approaches Adopted for Regulatory Capital Requirements	Standardized Approach

Fig. 1: Credit risk strategy, objectives, policies, and processes

Capital requirement and risk-weighted assets for credit risk (Standardized Approach)

Unit: NT$ thousand
Base date: December 31, 2025

Type of Risk Exposure	Capital requirement	Risk-weighted assets
Sovereigns	-	-
Public Sector Entities (non-central government)	134	1,671
Banks (including multilateral development banks)	121,966	1,524,574
Enterprises (including securities firms and insurance companies)	10,056,945	125,711,817
Retailed exposures	121,231	1,515,391
Equity securities	391,795	4,897,440
Intra-group exposures (including exposures to the parent company or subsidiaries, and exposures secured by securities issued by the parent company or subsidiaries)	-	-
Other assets	24,761	309,514
Total	10,716,832	133,960,407

(II) Securitization risk management system, exposure, and capital requirements

Securitization risk management system 2025

Item	Content
1. Securitization risk management strategy and processes	The Company has established internal regulations for securitization risk management in accordance with applicable laws and regulations. For beneficiary securities with maturities of more than one year, the Regulations Governing Bond Trading and Risk Position Management apply, while for asset-backed commercial paper with maturities of one year or less, the Regulations Governing Asset-Backed Commercial Paper Operations apply. These regulations govern limit management, approval procedures, risk management, and business operations for investments in securitization products, with the objective of optimizing the balance between risk and return.
2. Securitization risk management organization and structure	Prior to investing in securitization products, business units conduct detailed assessments on a case-by-case basis and apply for investment limits in accordance with the Company’s internal regulations and authorization levels. The Risk Management Department, together with relevant units, monitors the overall risk profile of securitization products on an ongoing basis.
3. Scope and characteristics of securitization risk reporting and measurement systems	The Risk Management Department measures and evaluates exposures to beneficiary securities and asset-backed commercial paper on a daily basis, and reports aggregated positions to management for ongoing monitoring. In addition, exposures and profit and loss are summarized and reported to the Asset and Liability Management Committee on a monthly basis.
4. Policies for securitization risk mitigation and hedging, and procedures for monitoring the effectiveness of risk mitigation measures	The Company regularly evaluates the profit and loss of securitization positions and reviews changes in credit, market, and liquidity risks associated with such products. Where appropriate, the Company assesses hedging costs and adopts suitable risk transfer or mitigation measures.
5. Approaches adopted for capital requirements	Standardized Approach

Status of securitization business

Base date: December 31, 2025

Type	Amount Issued	Amount Outstanding	Repurchased balance
Not applicable.

(III) Operational risk management system and capital requirements
Operational risk management system 2025

Item	Content
1. Operational risk management strategy and process	The Company’s operational risk assessment primarily focuses on internal audit, regulatory compliance, internal control self-assessment, and the collection of operational risk event data. In accordance with internal policies, including the Regulations Governing Trading Business Risk Management, Guidelines for Risk Control Operations, Guidelines for Regulatory Compliance, Regulations Governing Internal Control Systems and Self-Assessment, Guidelines for the Prevention of Insider Trading, Regulations Governing Security Controls for Electronic Repo Transactions, and Guidelines for Operational Risk Event Management, the Company enhances the management of internal audit, regulatory compliance, and internal control self-assessment.
2. Operational risk management organization and structure	The objective of operational risk management is to prevent potential losses or additional costs arising from operational failures or deficiencies in internal controls. The Internal Audit Department functions as an independent unit responsible for periodically evaluating the design and effectiveness of internal controls. In addition, the Company engages external auditors to audit (or review) the internal control systems related to financial reporting on a regular basis.
3. Scope and characteristics of operational risk reporting and measurement systems	Business, custody, and information units conduct general self-assessments at least semi-annually and perform special self-assessments at least monthly. The Internal Audit Department conducts at least one general audit and one special audit annually for each business, custody, and information unit, and at least one special audit annually for other management units. Audit findings are tracked and followed up to ensure timely remediation. To effectively manage operational risk, all units are required to promptly report operational risk events and submit periodic reports. A designated unit compiles summaries of operational risk events and reports them to the President and the Board of Directors.
4. Policies for operational risk mitigation and procedures for monitoring the effectiveness of risk mitigation measures	In accordance with the principle of segregation of duties, front-office and back-office functions are clearly separated. Business units (front office) are responsible for the authorization and approval of transactions, while operational units (back office) are responsible for execution and record-keeping, ensuring mutual verification of transaction accuracy. In addition, the Company reduces operational risk through enhanced staff training, system automation, and review mechanisms, and by establishing standardized operating procedures.
5. Approaches adopted for capital requirement	Basic Indicator Approach (BIA)

Capital requirement and risk-weighted assets for operational risk (BIA)
Unit: NT$ thousand
Base date: December 31, 2025

Year	Gross Profit	Capital requirement	Risk-weighted assets
2023	2,021,651
2024	2,238,473
2025	2,978,742
Total	7,238,866	361,943	4,524,291

(IV) Market risk management system and capital requirements
Market risk management system 2025

Item	Content
1. Market risk management strategy and process	The Company’s market risk management is established in accordance with the Act Governing Bills Finance Business and related regulations. Based on these requirements, the Company has formulated internal policies governing trading activities and product-specific management (see Figure 2 for details).
2. Market risk management organization and structure	The President serves as the senior executive responsible for market risk management, with support from the Asset and Liability Management Committee. Business units are responsible for executing market risk management activities.
3. scope and characteristics of market risk reporting and measurement systems	The scope of market risk reporting and measurement covers the impact of changes in market risk factors on the Company’s net worth and profit and loss arising from exposures to bills, bonds, equity instruments, and derivatives. Appropriate risk management measures are implemented to control the level of market risk assumed by the Company. The Risk Management Department reports aggregated positions to management on a daily basis through position summary reports and stop-loss monitoring reports. On a monthly basis, positions by product type, profit and loss, interest rate stress testing results, and value at risk are summarized and reported to the Asset and Liability Management Committee.

Item

Content

4. Policies for market Risk hedging and mitigation, and procedures for monitoring the effectiveness of risk mitigation measures

The objective of hedging is to manage the impact of changes in interest rates or prices on the Company's positions by using individual or portfolio hedging instruments, thereby mitigating cash flow risk and fair value risk. Financial assets held by the Company may be subject to changes in fair value or future cash flows due to fluctuations in market interest rates and exchange rates. Where such risks are assessed to be material, the Company enters into interest rate swaps, foreign exchange transactions, or other eligible hedging instruments to mitigate risk.

5. Approaches adopted for capital requirements

Standardized Approach

Fig.2: Market risk strategy, objectives, policies, and processes

Unit: NT$ thousand

Base date: December 31, 2025

Type of Risk	Capital requirement	Risk weighted assets
Interest rate risk	4,605,877	57,573,460
Equity securities risk	85,806	1,072,575
Foreign exchange risk	7,088	88,600
Commodity risk	-	-
Options (simplified approach)	-	-
Total	4,698,771	58,734,635

(V) Liquidity risk review and analysis

1. Maturity analysis of Assets and Liabilities

Unit: NT$ million

Base date: December 31, 2025

Item	Total	Balance by Remaining Maturity
		0-30 days	31-90 days	91-180 days	181 days-1 year	Over 1 year
Assets	260,562	71,643	56,449	10,848	16,996	104,626
Liabilities	234,264	201,149	31,099	1,853	163	0
Gap	26,298	(129,506)	25,350	8,995	16,833	104,626
Cumulative gap	26,298	(129,506)	(104,156)	(95,161)	(78,328)	26,298

2. Approach to managing asset liquidity and funding liquidity gap

The Company manages asset liquidity in accordance with the Regulations Governing Trading Business Risk Management and has established the Guidelines for Liquidity Control of Position Risks for Bonds and Equity Instruments. In addition to setting credit rating limits for each product type, the Company regularly reports the liquidity profile of each product category to the Asset and Liability Management Committee.

In accordance with the "Liquidity Risk Management Policy," the Company adopts a quantitative approach to liquidity risk management by establishing risk management indicator limits. A threshold of $90\%$ of these limits is set as an early warning level for monitoring purposes. Regular reports are prepared and submitted to the Asset and Liability Management Committee. The policy also clearly defines the units responsible for executing and supervising liquidity risk management. The execution units adjust liquidity gaps in response to changes in daily cash flows and market conditions to ensure adequate liquidity, while the supervisory units periodically review the appropriateness of the execution process. In addition, the Company has established the "Guidelines for Liquidity Gap Management" to control liquidity gap risk. These guidelines set limits on daily liquidity gaps for each business unit, liquidity gaps across different maturities for the Company as a whole, and net maturity gaps with individual counterparties on a daily basis, thereby maintaining liquidity risk at an appropriate level. The risk management unit monitors total major liabilities and liquidity risk management indicators on a daily basis. Business units also conduct regular stress testing under various scenarios to establish routine maintenance mechanisms and contingency plans.

III. Impact of changes in domestic and international policies and regulations on the company's financial and business operations, and corresponding measures:

(I) Significant changes in Bills Finance Regulations in 2024 and up to the date of publication of the annual report

Date of Promulgation	Category of Laws and Regulations	Changes / Amendments	Impact and Response Measures
August 12,2025	Regulations for Members of the Bills Finance Association of the Republic of China (Taiwan) on Sustainable Bills	Newly introduced to promote sustainable finance and establish a framework for sustainable bills in Taiwan.	When conducting sustainable bill-related business, the Company reviews and verifies the application documents submitted by issuers (including the sustainable bills framework, use of proceeds report, post-issuance report, and evaluation or verification reports) in accordance with the requirements of the regulations.
November 11,2025	Personal Data Protection Act	Amended to align with the establishment of the Personal Data Protection Commission, granting it enforcement powers, including administrative supervision over public and private sector entities, as well as establishing coordination mechanisms with supervisory authorities of public agencies and the competent central and local authorities of private sector entities.	Certain detailed provisions will be further prescribed through subordinate regulations to be issued by the Personal Data Protection Commission. The Company will comply with the relevant requirements in accordance with such regulations as they are promulgated.
December 16,2025	Regulations Governing the Preparation of Annual Reports by Bills Finance Companies	Amended in response to the increasing emphasis on sustainable development and related financial disclosures in the financial industry. In reference to the FSC's roadmap for IFRS Sustainability Disclosure Standards and the phased adoption plan, as well as the approach adopted under the Regulations Governing the Preparation of Annual Reports by Public Companies, the regulations have been revised to require a dedicated section in annual reports for sustainability-related financial information prepared in accordance with IFRS Sustainability Disclosure Standards.	In accordance with the FSC Order No. 11402739247 dated December 16, 2025, the Company will revise its annual report in compliance with the regulations and include a dedicated section presenting sustainability-related financial information prepared in accordance with IFRS Sustainability Disclosure Standards.

Date of Promulgation	Category of Laws and Regulations	Changes / Amendments	Impact and Response Measures
January 7,2026	Self-Regulatory Guidelines for Bills Finance Companies on Credit Extension to the Leasing Industry	Newly introduced to strengthen risk control over credit extended by bills finance companies to the leasing industry, particularly with respect to the potential flow of funds into the real estate sector.	1. The Company conducts thorough credit assessments for exposures to the leasing industry, including evaluation of the purpose of funds and the appropriateness of credit limits, and regularly monitors whether the actual use of funds is consistent with the stated purpose.
2. Credit exposures to the leasing industry that are used for financing activities related to the real estate sector are included in the overall credit limit for the real estate sector.
3. For other credit exposures to the leasing industry, the Company requires undertakings or commitments that the funds will not be diverted to real estate-related financing activities.

(II) Important Laws and Regulations Under Review or Pending Implementation

Date of Promulgation	Category of Laws and Regulations	Changes / Amendments	Impact and Response Measures
January 19,2026	Draft amendments to the Regulations Governing Capital Adequacy of Bills Finance Companies	The draft amendments, with reference to the capital adequacy regulations applicable to banks, remove the requirement to deduct valuation gains on financial assets or financial liabilities measured at fair value through profit or loss (FVTPL) from Tier 1 capital, in line with the principle of regulatory consistency. In addition, as such valuation gains are no longer required to be deducted from Tier 1 capital, the provision requiring the inclusion of 45% of such gains in the calculation of Tier 3 capital is also removed.	The impact of the proposed amendments on the Company's capital adequacy ratio is expected to be minimal. Upon adoption of the amendments, the Company will continue to comply with the Regulations Governing Capital Adequacy of Bills Finance Companies.
February 13,2026	Draft amendments to the Regulations Governing the Implementation of Internal Control and Audit Systems for Financial Holding Companies and the Banking Industry	The key amendments are summarized as follows:
1. The “three lines of defense” framework is revised to the “three lines model.” The requirement for the internal audit unit to oversee the implementation of self-assessments by various units is removed. Instead, management is required to designate units responsible for compliance, risk management, information security, or other second-line functions to oversee the formulation and implementation of self-assessment procedures.
2. Additional provisions are introduced requiring internal control systems to incorporate sustainability information management, business continuity management mechanisms, and responsibility mapping frameworks within operational procedures and manuals.
3. Financial holding companies and banks are required to establish three key officer positions—Chief Compliance Officer, Chief Risk Officer, and Chief Information Security Officer—along with dedicated units reporting to the President. These positions must be at the vice president level or above.	The proposed amendments will impact the Company's existing internal control systems and the allocation of organizational responsibilities and authorities.
The Bills Finance Association has compiled industry feedback on the proposed amendments and submitted it to the competent authority.
The Company will comply with the relevant regulations upon their formal implementation.

IV. Impact of technological changes and industry developments (including cybersecurity risks) on the company’s financial and business operations, and corresponding measures:

The bills finance industry is a stable and mature sector, with limited changes in recent years. In response to the rapid development of artificial intelligence (AI), the Company is actively evaluating the adoption of AI technologies to optimize applications across various business areas and operational scenarios, thereby enhancing operational efficiency. The Company is also conducting dedicated research on the application of real-world assets (RWA) and stablecoins in the bills finance business.

The Company’s decision support systems effectively integrate relevant internal and external information and present such information in a systematic manner. These systems provide management information to support decision-making and serve as a data source for employees’ day-to-day business analysis.

For the impact of cybersecurity risks on the Company’s financial and business operations and the corresponding measures, please refer to “VI. Information Security Management” under the Operational Overview section of the Annual Report (pages 82–86).

V. Impact of changes in the image of bills finance companies on the company and corresponding measures:

The Company has a long-standing history and a strong reputation, which contributes to a high level of customer trust. Its business strategy continues to be guided by the core values of “gratitude, prudence, and continuous improvement.” Building on its solid foundation, the Company strives to enhance its competitive advantage through ongoing learning, improvement, and innovation, thereby delivering greater value to customers, shareholders, and employees. In response to evolving financial market conditions, the Company is also actively expanding into new business areas and financial products, with the aim of developing into a specialized fixed-income securities dealer.

VI. Expected benefits and potential risks of mergers and acquisitions:

None.

VII. Expected benefits, potential risks, and corresponding measures for expansion of business locations:

None.

VIII. Risks arising from business concentration and corresponding measures:

To mitigate risks arising from business concentration, the Company establishes controls over the total amount or ratio of credit exposures to a single related party and to related enterprises. The Company also sets limits by industry sector, collateral type, and business category.

In addition, a Risk Control Division has been established under the Risk Management Department to integrate the identification, measurement, monitoring, and reporting of overall risks, with the aim of maintaining risk exposure within the risk tolerance approved by the Board of Directors.

IX. Impact of changes in control on the Company, associated risks, and corresponding measures:

O-Bank remains the Company’s largest shareholder and, together with Baojia Group, participates in the operation of the Board of Directors with the objective of maximizing shareholder value. There have been no material changes in the Company’s control in recent years.

100

101

X. Impact, risks, and corresponding measures arising from significant transfers or changes in shareholdings by directors or major shareholders holding more than 1% of shares:

None.

XI. Litigation or non-litigation matters:

(I) For the Company

None.

(II) Matters relating to directors, the President, major shareholders holding more than 1% of shares, and their affiliated companies

1. Directors and President

None.

2. Major shareholders holding more than 1% of shares and their affiliated companies

Name of Shareholder	Litigation or non-litigation matters	Remarks
O-Bank Co., Ltd.	Nil	Note 1
PJ Asset Management Co., Ltd.	Nil
Mingshan Investment Co., Ltd.	Nil
Ho-Chu Investment Co., Ltd.	Nil
Standard Chartered Bank, Dunhua Branch as Trustee of iShares MSCI Emerging Market ETF Investment Account	Nil

Note 1: The Company sent inquiry letters on March 5, 2026 to shareholders holding more than 1% of its shares (based on the shareholders’ register as of July 2, 2025), requesting information on any material litigation, non-litigation, or administrative proceedings. Non-responses were deemed as no such cases. As of the response deadline on March 11, 2026, the aforementioned companies did not report any litigation or non-litigation cases.

XII. Other significant risks and corresponding measures

None.

Seven. Crisis Response and Contingency Mechanisms

To mitigate the impact of disasters affecting critical information systems and to ensure the prompt recovery of normal operations, the Company has implemented the following protective measures:

(I) To prevent disruptions to the trading system, data is synchronously backed up to an offsite location every 15 minutes. Both onsite and offsite data are protected through RAID mechanisms. High availability configurations are deployed for primary systems to enable automatic failover to onsite backup systems in the event of system failure. In the event of a complete outage of the primary data center, operations can be switched to the offsite backup site to ensure business continuity.

(II) For interbank remittance systems and central bank clearing and settlement systems, comprehensive backup systems and network connections have been established. Data between onsite and offsite systems is synchronized every five minutes. In the event of a complete outage of the primary data center, these systems can be switched to the offsite backup environment to maintain uninterrupted operations.

(III) To enhance system resilience, virtualization technology (VMware) has been adopted for key systems, including domain controllers, office automation systems, antivirus systems, resource management systems, data loss prevention (DLP) systems, web filtering systems, endpoint detection and response (EDR) systems, email security gateway (ESG) systems, outbound email encryption systems, the Company's official website, OTC trading systems, derivatives trading systems, and central bank clearing systems. Primary and backup VMware hosts are deployed, and HA mechanisms enable automatic failover to backup hosts in the event of system anomalies. In addition, full system backups are performed daily using HDPS Commvault, with both onsite and offsite backup schedules to enhance system availability and security.

(IV) An offsite backup data center has been established in Taoyuan. To ensure its effectiveness, disaster recovery drills for the trading system and office automation systems were conducted twice in 2025, enabling rapid manual switching to the offsite backup environment in the event of a complete outage of the primary data center.

(V) To address natural disasters or major infectious disease outbreaks, the Company has established enhanced contingency mechanisms for alternative workplaces and remote working:

Alternative workplaces: Backup systems have been deployed at an offsite location (Banqiao Branch), including systems for central bank clearing, SWIFT Lite2, securities depository operations (SMART), cooperative bank FEDI, and interbank remittance connectivity.
Remote working: Employees are provided with laptops and secure token-based access to connect to their office desktops and internal systems. Existing cybersecurity controls are maintained, and VPN connections are monitored and logged to enhance security.

(VI) To ensure uninterrupted power supply, critical systems are supported by UPS infrastructure. Data center environments are safeguarded through environmental monitoring systems, centralized air conditioning control, automatic gas-based fire suppression systems, access control systems, and surveillance systems. Alerts are automatically issued in the event of abnormalities such as water leakage, temperature or humidity fluctuations, or fire, enabling timely response and mitigation.

To strengthen disaster response and crisis management capabilities, the Company has established internal guidelines, including the Guidelines for Emergency Response to Disasters and the Guidelines for Information System Incident Response. These measures enable timely response to incidents, minimize potential losses, and ensure the continuity of the Company's financial operations.

Eight. Other Major Items

None.

103

Special Items

One. Information on Affiliated Enterprises

I. Consolidated business reports of affiliated enterprises
Not applicable.

II. Consolidated financial statements of affiliated enterprises
Not applicable.

III. Affiliation report

(I) Declaration by China Bills Finance Corporation
See Page 104

(II) Independent Auditor's Opinion
See Page 105

Declaration of Statement

The Company hereby declares that the Company's 2025 Affiliation Report (from January 1, 2025 to December 31, 2025) was prepared pursuant to the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statement of Affiliated Enterprises", and there are no significant inconsistencies between the information given above and the supplementary information disclosed in the notes to financial statements for the above period.

104

CBI

CHINA BILLS FINANCE CORPORATION

Responsible person: CHENG-CHUAN CHANG

Deloitte

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No.100, Songren Rd.

Xinyi Dist., Taipei 11073, Taiwan

Tel.:+886(2)2725-9988

Fax:+886(2)4051-6888

www.deloitte.com.tw

February 26, 2026

Deloitte & Touche No.11501887

Addressee: China Bills Finance Corporation

Subject: Comments on the declaration of statement certifying no significant inconsistencies in the information disclosed in your 2025 Affiliation Report

Descriptions:

You declared that your 2025 Affiliation Report (from January 1, 2025 to December 31, 2025) prepared on February 26, 2026, was prepared pursuant to the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprise”, and there are no significant inconsistencies between the information disclosed herein and the supplementary information disclosed in the notes to financial statements for the above period. For the Declaration of Statement, please see the attachment hereto.
We have audited your Affiliation Report prepared in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises”, and compared it with the notes to your 2025 financial statements. As a result, we found no significant inconsistencies from said declaration of statements.

Deloitte & Touche

Kuan-Hao Lee, CPA

Yin-Chou Chen, CPA

105

(III) Relationship between subsidiaries and the controlling company

Controlling company	Reasons for control	Shareholding and pledged shares of the controlling company			Representatives appointed by the controlling company
		Shares held	Shareholding ratio	Pledged shares	Title	Name
O-Bank Co., Ltd.	Directly or indirectly exercises control over the Company's personnel and business operations	380,981,600	28.36%	-	Director (Chairman) Director Director	Cheng-Chuan Chang Chih-Yu Hsiao Chih-Yuan Hsu

(IV) Information on transactions:

Purchase and sale transactions: None
Property transactions: None.
Financing arrangements: Not applicable.
Asset leasing: See Appendix 1.

The Company entered into a lease agreement with O-Bank Co., Ltd. on November 15, 2024 for a property and parking spaces, with a lease term from January 1, 2025 to December 31, 2027. The monthly rent is NT$1,101,000.

Appendix 1

Type of transaction	Description of leased assets	Location	Lease term	Lease type	Basis for rent	Payment method	Comparison with market rental level	Total rent for the current period	Paid as scheduled.	None
Other terms
None
Paid as scheduled.
The total rental for the period amounted to NT$39,649,000.
Based on appraisal reports issued by Global Vision and Hung Bang real estate appraisal firms, the reasonable rental range is between NT$1,500 and NT$1,540 per ping. The current rental rate is considered reasonable.
Paid by the Company by check before the first day of each month.
Calculated based on the leased area: NT$1,575 per ping (tax included); NT$2,500 per parking space; NT$100 per motorcycle parking space (tax included)
Operating lease
January 1, 2025–December 31, 2027
No. 99, Sec. 2, Tiding Blvd., Taipei City
Property: Entire 4th floor at No. 99, Sec. 2, Tiding Blvd., Taipei City, with an area of approximately 679.85 ping. Parking spaces: 12 car parking spaces at B4 and 6 motorcycle parking spaces at B1
Lease agreement for property and parking spaces

Other significant transactions: None.

(V) Endorsements and guarantees: None.

(VI) Other matters with a material impact on financial and business operations: None.

Two. Private placement of securities in recent years up to the date of publication of the annual report

None

Three. Other important supplementary information

None

Four. Events in the previous year and up to the date of publication of the annual report that have a material impact on shareholders' equity or the price of the Company's securities pursuant to Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act

None.

107

CHINA BILLS FINANCE CORPORATION

CHENG-CHUAN CHANG

Chairman of the Board

The cover image was photographed at the entrance signage of China Bills Finance Corporation.

CHINA BILLS FINANCE CORPORATION

4F., No.99, Sec.2, Tiding Blvd., Neihu Dist., Taipei City 114, Taiwan (R.O.C.)
TEL: (02)2799-1177
FAX: (02)2659-3267
Website: www.cbf.com.tw

AI assistant

CBF — Annual Report 2025

52199_rns_2026-05-21_bd6b2035-5abe-47aa-9947-24673511d9b2.pdf

CHINA BILLS FINANCE CORPORATION

Content

Letter to Shareholders

Corporate Governance Report

Capital Overview

Overview of Operations

Review and analysis of financial status and financial performance and risk management

Special Items

II. Organizational changes

III. Business plan implementation and operating performance

The Company's key performance results in 2025 are as follows:

IV. Budget execution, financial performance, and profitability analysis

V. Research and Development

Two. Summary of Business Plan for 2026 and Future Development Strategies

I. Operating Guidelines

II. Expected operating Targets and Basis

III. Key Operating Policies and Future Development Strategies

Three. Impact of External Competitive, Regulatory, and Macroeconomic Environments

Four. Latest credit rating result and the rating date

Corporate Governance Report

I. Directors

(II) Major shareholders of corporate shareholders who are representatives of the corporate shareholders

(IV) Board Diversity and Independence:

II. Information concerning the president, vice presidents, assistant vice presidents, and department and branch managers

III. Consultants who are former Chairman and President of the Company or its affiliates

Two. Information on Remuneration Paid to Directors, Presidents, Vice Presidents, and Consultants, and Remuneration Paid to Employees in the Most Recent Year

Breakdown of Remuneration

Schedule: 2025 Vehicles and Imputed Annual Rental Value (President and Vice Presidents)

(III) Managers Receiving Employee Compensation and Distribution

2. Procedures for Determining Remuneration

3. Relationship Between Remuneration, Operating Performance, and Future Risk Exposure

Three. Status of Corporate Governance Implementation

I. Operation of the Board of Directors

(I) Board Diversity and Independence Policy and Implementation

1. Board Diversity Policy

2. Specific Objectives and Implementation Status of Board Diversity Policy

3. Independence of the Board of Directors:

4. Status of Board Diversity Implementation

(II) Status of members' attendance

II. Annual highlights and operations of Audit Committee

(I) Profile of Audit Committee members:

(II) Key Annual Review Items:

III. Items to be disclosed in accordance with the Corporate Governance Best Practice Principles for Bills Finance Companies

IV. Status of Corporate Governance Implementation and Deviations from the Corporate Governance Best Practice Principles for Bills Finance Companies, along with Explanations

V. Composition, Duties and Operations of the Remuneration Committee

(I) Profile of Remuneration Committee members

(II) Responsibilities and Duties

(III) Information on the Operation of the Remuneration Committee

VII. Climate-related information

(III) Greenhouse gas reduction goals, strategies and concrete action plans:

1. Greenhouse gas reduction base year and reduction target

2. Greenhouse gas reduction strategies and action plans

3. Progress on Emission Reduction Targets

IX. Methods for Accessing the Company's Corporate Governance Principles and Related Regulations

X. Implementation of the internal control system

(I) Internal Control System Statement

China Bills Finance Corporation

Statement on Internal Control System

Five. Information about replacement of CPAs

(I) Former Auditors

(II) Successor Auditors

Six. The facts about the Company chairman, president, managerial officer in charge of financial or accounting affairs having served with the CPA Office or the affiliation thereof over the past year

II. Information about the counterpart in any transfer or pledge of equity who is a related party

Nine. Total number of shares and total equity stake held in any single invested enterprise by the Company, its directors, President, vice presidents, assistant vice presidents, department and branch managers and any companies controlled either directly or indirectly by the Company

Capital Overview

One. Capital and Shares

I. Capital stock sources

II. List of major shareholders

III. Dividend Policy and Implementation Status

(I) Dividend policy

Overview of Operations

One. The content of business

I. Business Overview

(I) Scope of business

(II) Proportions of assets and revenue of each business segment as a percentage of the Company’s total assets and total revenue, along with their growth and changes.

1. Assets

2. Revenue

CBF Annual Report 2025