Stock code: 6024

2025

ANNUAL REPORT

Capital Futures Corp.

Notice to readers

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

Date of Issuance: March 31, 2026

Capital Futures Corp. Annual report is available at:

https://mops.twse.com.tw

Company Website: https://www.capitalfutures.com.tw

I. Spokesperson:
Name: Mao, Chen-Hua
Title: President
Tel: (02)2700-2888
Email: [email protected]

II. Deputy Spokesperson:
Name: Lin, Li-Chuan
Title: Executive Vice President
Tel: (02)2700-2888
Email: [email protected]

III. Address and telephone number of the Head Office and branches:
Head Office:
Address: B1, B2 & 32F, No. 97, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City, R.O.C
Tel: (02)2700-2888
Taichung Branch
Address: 3F.-6, No.633, Sec. 2, Taiwan Blvd., Xitun Dist., Taichung City, R.O.C
TEL: (04)2319-9909

IV. Institution for stock transfer
Name: Capital Securities Corp.
Address: B2, No.97, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City, R.O.C.
Tel: (02)2702-3999
Website: https://agency.capital.com.tw/

V. Names of financial statement auditors in the latest year
CPA Firm: KPMG
Auditors: Wu, Cheng-Yen & Chen, Yi-Jen
Address: 68F., No.7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City, R.O.C
Tel: (02)8101-6666
Website: https://kpmg.com/tw

VI. Name of overseas exchange where securities are listed, and the methods for inquiring the foreign-listed securities: None.

VII. Company Website: https://www.capitalfutures.com.tw

Chapter I. Report to Shareholders ... 1
Chapter II. Corporate Governance Report ... 4
I. Background information of directors, supervisor, president, executive vice presidents, vice presidents, and the heads of various departments and branches ... 4
II. Remuneration paid to directors, supervisors, presidents, and executive vice presidents in the most recent year ... 19
III. Corporate governance ... 26
IV. Information in public fees of the Certified Public Accountant Association ... 90
V. Changing of CPA ... 91
VI. Where the company’s chairperson, president, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed ... 91
VII. The status of changes that directors, supervisors and shareholders holding more than 10 percent of outstanding shares had transferred and pledged their shares: ... 91
VIII. Information disclosing the relationship between any of the Company’s top ten shareholders ... 92
IX. Shares held by the Company, Directors, Managers and companies directly or indirectly control the Company, and the comprehensive shareholding ratio based on combined calculation ... 94

Chapter III. Capital Overview ... 95
I. Capital and shares ... 95
II. Any issuance corporate bonds, preferred shares, global depository receipts, and employee stock warrants, and new restricted employee shares, and the status of implementation ... 98
III. Depositary receipts and employee share subscription warrant status of New Shares issuance in connection with mergers and acquisitions ... 98
IV. Financing plans and execution status ... 98

Chapter IV. Operation Highlights ... 99
I. Business activities ... 99

II. Overview of the market, production, and sales - an overview of the overall economic environment and trends in the industry 105
III. Human resources 108
IV. Information on environmental protection expenditures 108
V. Labor relations 108
VI. ICT security management 113
VII. Important contracts 116

Chapter V. Review of Financial Conditions, Operating Results, and Risk Management 117

I. Five-year financial analysis 117
II. Analysis of financial status 123
III. Analysis of operation results 124
IV. Cash flow 124
V. The impact of the significant capital expenditure over the past year upon the financial performance 124
VI. The outward investment policies over the past year. The key reasons leading to the profit or loss, the corrective plans and the investment plan in one year ahead 124
VII. Risk analysis and assessment in the most recent year and up to the date of publication of the annual report 125
VIII. Other Important Matters 130

Chapter VI. Special Disclosures 131

I. Summary of affiliated companies 131
II. Where the company has carried out a private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report 131
III. Other Necessary Supplement 131
IV. Disclosures of events which may have a significant influence on stockholders' equity or share price, in compliance with Subparagraph 2, Paragraph 2 in Article 36 of the securities and Exchange Act of the R.O.C. 131

Chapter I. Report to Shareholders

I. Operating performance in 2025

In 2025, the global political and economic landscape remained volatile. The U.S. administration under President Donald Trump reinstated reciprocal tariff policies, triggering a swift and sharp market correction. Export-oriented enterprises and multinational technology stocks were particularly affected and experienced significant declines. Taiwan’s economy, however, benefited from the ongoing AI boom, which drove strong growth in the electronics and semiconductor industries. In contrast, traditional industries were impacted by various challenges, resulting in significant divergence in performance across different sectors. Despite these developments, Taiwan’s overall economic growth momentum remained relatively stable. The stock market repeatedly reached new highs amid high-level volatility, reflecting the continued resilience and steady development of Taiwan’s capital market in the face of global uncertainties.

The total volume of the Company’s domestic futures brokerage business in 2025 was approximately 72.15 million lots, with a market share of 9.45%, representing an increase of 4.2% as compared with 69.23 million lots in 2024. The trading volume of its overseas futures brokerage business was approximately 9.36 million lots, with a market share of 20.8%, representing an increase of 8.5% as compared with 8.62 million lots in 2024. The Company’s leveraged trading business continued to maintain the leading market share in the market. In addition, Capital Futures U.S. stock CFDs were introduced as a new trading instrument for investing in the U.S. equity market. Meanwhile, the asset management scale of the Company’s futures discretionary business accounted for over 90% of the market share, demonstrating outstanding performance across the market. Through its “Balanced Hedging Strategy,” which emphasizes both risk management and asset appreciation, the Company remains committed to achieving the long-term objective of stable and sustainable wealth growth.

In 2025, due to the business expansion, the customers’ margin also increased by 19.87% compared to the last year, and the total interest income increased accordingly. Therefore, the consolidated income in 2025 was NT$2,902,818 thousand, an increase of 9.98% compared to the consolidated income of NT$2,639,376 thousand in 2024; and the consolidated net income after tax was NT$1,330,521 thousand in 2025, an increase of 11.61% compared to the consolidated net income after tax of NT$1,192,126 thousand in 2024.

With the advancement of financial technology, the Company adheres to the philosophy of “technology for people” in promoting fintech innovation. The Company is committed to strengthening AI-driven digital innovation services for sustainable green finance, establishing a forward-looking digital risk control framework, and providing customers with more intelligent and reliable financial services. The Company also actively supports the policies of the competent authorities by strengthening internal anti-fraud governance, optimizing the anti-fraud platform, and enhancing customer fraud awareness and prevention. Through early identification of potential fraud risks and timely alerts, the Company endeavors to safeguard customers’ rights and interests. In addition, the Company’s information systems have obtained ISO 27001 Information Security Certification and BS 10012 Personal Information Management Certification, while the Company’s official website has received the Web Accessibility Certification Mark 2.0 (Level A), demonstrating the Company’s leadership and commitment to sustainability in fintech innovation, financial inclusion, and fair customer treatment.

Capital Futures is committed to the vision of “becoming a digital financial company that touches customers the most” Supported by a strong corporate culture and a professional management team, the Company continues to enhance its institutional framework and operational processes, striving to protect shareholders’ rights and interests, strengthen the functions of the Board of Directors, enhance corporate governance relationships with affiliated enterprises, ensure sufficient information disclosure and transparency, and continuously improve its internal control and audit mechanisms. By cultivating leading core competitive advantages and actively responding to global sustainability trends, the Company integrates sustainability principles into its business strategies, balancing business development with its commitments and mission toward sustainable development.

II. 2025 income and profit analysis (Consolidated)

Unit: NT$ Thousand

Item	2025	2024
Income	2,902,818	2,639,376
Expenses	3,086,705	2,640,220
Non-operating income and expenses	1,814,312	1,464,029
Net income before tax	1,630,425	1,463,185
Net income after tax	1,330,521	1,192,126
Return on Equity (%)	14.64%	15.98%
Net profit margin (%)	45.84%	45.17%
Return on assets (%)	1.96%	2.14%
Earnings per share after tax (dollar)	5.48	5.66

III. Operating plans and development strategies for the future

Looking ahead to 2026, global inflation is expected to gradually ease but remain subject to uncertainties, while major central banks are entering the early stage of an interest rate—cutting cycle. At the same time, geopolitical risks, including U.S.—China relations and regional conflicts, will continue to influence capital flows and market volatility. The global economy is expected to exhibit divergent growth, with market fluctuations becoming the new norm.

Amid global policy divergence and rising geopolitical tensions, market volatility is likely to remain a prevailing feature, which is expected to support demand for futures and hedging-related products. In response, the Company will continue to introduce AI-driven and intelligent investment support tools, provide comprehensive investment strategies—including hedging, volatility management, and cross-market asset allocation—and leverage its professional services and product depth to assist investors in navigating uncertainties in the global financial markets.

The operating plans and development strategies of the Company in 2026 are as follows:

(I) Futures, Securities and Leveraged Products Integrated Development Strategy

As to the integrated marketing and account opening for futures, securities, and leveraged transaction brokerage businesses, personnel will obtain the relevant securities and leveraged transaction qualifications and receive professional training to enhance their business capabilities.
In response to the growth of the U.S. equity market, the Company will integrate U.S. stock sub-brokerage services, U.S. stock CFDs, and single-stock options with their respective features to build a comprehensive trading platform, meeting the needs of different customer segments and providing more diversified investment choices.

(II) Digital and AI Development Strategy

Review and consolidate the AI agent knowledge bases across departments, establish process automation, significantly enhance employees’ capabilities and operational efficiency, and achieve the objectives of sustainability and knowledge transfer, thereby creating differentiated competitive advantages.
Introduce AI learning into digital services such as intelligent push notifications, short-form video production, and Capital Futures Morning Briefings, and continuously optimize existing digital services through customer feedback data.
Train Capital Futures AI to assist customers in program development, addressing the challenges customers face in writing programs and enabling program trading even for users with no programming background, thereby expanding the program trading customer base.

(III) Asset Management Business Strategy

Based on the existing I-Cash hedging strategy model, the Company will continue to develop new markets and expand its asset management product offerings.

(IV) Interest Rate-Cut Response Strategy

Expand the customer base among bond trading departments of life insurance companies, bills finance companies, banks, and securities firms by providing innovative services.
The investment research division will increase research reports and strategies on interest rates and bonds to enhance customers’ bond product trading activities.

(V) Talent cultivation and rotation strategy

The Company will list cultivation and introduction of outstanding talents as the KPIs of various department leaders. The talents in various departments are the Company’s assets, and should be adjusted and rotated properly to develop their potential.
Expand the scope of the Capital Futures T-Sport for Top Trader Program, continue campus engagement initiatives, and redesign the internship program, including compensation, incentives, and internship content, to more effectively recruit interns and cultivate futures trading professionals.
Strengthen employee training programs to develop new perspectives, new technologies, and new market capabilities, enabling the Company to continuously upgrade and transform its operations.

Chairman:
President:
Accounting manager:

Chapter II. Corporate Governance Report

I. Background information of directors, supervisor, president, executive vice presidents, vice presidents, and the heads of various departments and branches

(I) Directors' and Supervisors' Information

March 31, 2026

Title	Nationality and registry	Name	Gender / Age	Date elected	Term	Date first elected (Note 1)	Shares at election		Current number of shares held		Shareholdings of spouse and underage children		Shares held in the names of others		Academic background & experience	Current duties in the Company and in other companies	Spouse or relatives of second degree or closer acting as department heads, directors or supervisor			Remark (Note 2)
							Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding			Title	Name	Relation
Director	Republic of China	Capital Securities Corp.		2024.5.30	3 Years	1997.7.8	119,066,014	56.58%	138,619,711	55.46%	0	0	0	0			-	-	-
Chairman	Republic of China	Chia, Chung-Tao	Male Age 61-70	2024.5.30	3 Years	2015.8.10	0	0	0	0	0	0	0	0	Master of Business Administration, National Chengchi University Director of Capital Securities Corp. President	Director of CSC Futures (HK) Ltd. Chairman of Capital International Technology Corp. Chairman of True Partner Capital Technology (Chengdu) Co., Ltd. Chairman of QIT Technology Co., Ltd. Director of Taiwan Futures Exchange	-	-	-
Director	Republic of China	Lee, Wen-Chu	Male Age 61-70	2024.5.30	3 Years	2021.8.26	0	0	240,027	0.10%	0	0	0	0	Executive Master of Business Administration, National Cheng Chi University President and Chairman of Capital Futures Corp.	Director of CSC Futures (HK) Ltd. Director of Capital Securities (HK) Ltd. Director of CSC International Holdings Ltd. President of Capital Securities Corp.	-	-	-
Director	Republic of China	Liu, Ching-Tsun	Male Age 71-80	2024.5.30	3 Years	2011.9.19	0	0	0	0	0	0	0	0	M.P.A., University of San Francisco, USA Chairman, Capital Securities Corp.	Director of Capital Securities Corp. Director of Taiwan Oasis Technology Co., Ltd. Independent director of PharmaEssentia Corporation	-	-	-
Director	Republic of China	Hung Yeh Investment Co., Ltd.		2024.5.30	3 Years	2012.6.19	2,031	0.00%	2,335	0.00%	0	0	0	0			-	-	-
Director	Republic of China	Lin, Tru-Yi	Female Age 50-60	2025.2.25	3 Years	2025.2.25	0	0	0	0	0	0	0	0	Executive Master of Business Administration in International Finance (IEMBA) of National	Director of Capital Securities Corp. Supervisor of Fornet Enterprise Co., Ltd. Supervisor of Shang	-	-	-	Note 1

Title	Nationality and registry	Name	Gender / Age	Date elected	Term	Date first elected (Note 1)	Shares at election		Current number of shares held		Shareholdings of spouse and underage children		Shares held in the names of others		Academic background & experience	Current duties in the Company and in other companies	Spouse or relatives of second degree or closer acting as department heads, directors or supervisor
							Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding			Title	Name	Relation
															Taipei University Director of Capital Securities Corp.	Wei Investment Co., Ltd. Supervisor of Tai Lian Investment Co., Ltd. Supervisor of Hong Long Enterprise Co., Ltd. Supervisor of Chia Shan Yueh Construction
Independent Director	Republic of China	Lin, Juh-Cheng	Male Age 61-70	2024.5.30	3 Years	2024.5.30	0	0	0	0	0	0	0	0	Master of Business Administration (MBA), Mississippi State University Vice President, Taiwan Futures Exchange	Director, Securities Analysis Association Adjunct Lecturer, Graduate Institute of Management, National Taiwan Normal University Independent Director of Joules Miles Independent Director of Excellence Optoelectronics Holding Co., Ltd. Independent Director of Excellence Optoelectronics Inc.	-	-	-
Independent Director	Republic of China	Hsiao, Nai-Ching	Female Age 61-70	2024.5.30	3 Years	2020.6.19	0	0	0	0	0	0	0	0	Master of Law, National Chung Hsing University Judge of Supreme Court	Lawyer, Hsiao Nai Ching Law Firm	-	-	-
Independent Director	Republic of China	Wu, Yung-Sheng	Male Age 61-70	2024.5.30	3 Years	2021.5.20	0	0	0	0	0	0	0	0	Ph.D. of Law, National Chengchi University School consultant of Ming Chuan University and an adjunct professor of the Department of Finance	Independent Director of Rubytech Corp. Independent Director of DEXIN Corp. Adjunct Professor, Department of Business and Economic Law, CTBC Business School	-	-	-

Note 1: Date of first serving as a director and independent director of the Company. If interrupted, please specify.
On February 25, 2025, Hung Yeh Investment Co., Ltd. changed its representative from Ms. Wang, Hui-Chin to Ms. Lin, Tzu-Yi.
Note 2: Where the chairperson of the Board of Directors and the president or person of an equivalent post (the highest level manager) of a company are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response.

Table 1: The Major Shareholders of Corporate Shareholders
March 31, 2026

Corporate Shareholder Name	The Major Shareholders of Corporate Shareholders	Ratio of shareholding (%)
Capital Securities Corp.	Capital Tip Customized Taiwan Select High Dividend ETF Fund Account	4.23
	Fu Ding Investment Co., Ltd.	3.52
	Bao Zuo Investment Co., Ltd.	3.50
	Bao Sheng Investment Co., Ltd.	3.33
	Tai Sheng Investment Co., Ltd.	3.29
	Hong Chia Investment Co., Ltd.	2.98
	Min Huei Enterprise Co., Ltd.	2.82
	KGI Taiwan Premium Selection High Dividend 30 ETF Fund Account	2.81
	Hontai Life Insurance Co., Ltd.	2.80
	Yuanta Taiwan High Dividend Low Volatility ETF Fund Account	2.78
Hung Yeh Investment Co., Ltd.	Chao Lung Investment Co., Ltd.	41.25
	Tai Fa Investment Co., Ltd.	18.58
	Tai Hsiang Investment Co., Ltd.	18.54
	Tai He Investment Co., Ltd.	9.73
	Hong Chia Investment Co., Ltd.	3.28
	Tai He Construction Management Co., Ltd.	1.74
	Tai Lain Investment Co., Ltd.	1.72
	Bao Zuo Investment Co., Ltd.	1.52
	Fu Ding Investment Co., Ltd.	1.52
	Tai Chun Investment Co., Ltd.	0.93

Table 2: Major shareholder(s) where the major shareholder of the juristic is a juristic person

Corporate Shareholder Name	The Major Shareholders of Corporate Shareholders	Ratio of shareholding (%)
Capital Tip Customized Taiwan Select High Dividend ETF Fund Account	Not Applicable
Fu Ding Investment Co., Ltd.	Chao Lung Investment Co., Ltd.	24.73
	Tai Fa Investment Co., Ltd.	13.02
	Tai Hsiang Investment Co., Ltd.	9.76
	Bao Qing Investment Co., Ltd.	6.51
	Hong Chia Investment Co., Ltd.	6.51
	Yu Chun Enterprise Co., Ltd.	6.03
	Fu Tai Construction Corporation	5.80
	Tai He Investment Co., Ltd.	5.21
	Tai Chun Enterprise Co., Ltd.	4.28
	Run Hsiang Enterprise Co., Ltd.	4.27
Bao Zuo Investment Co., Ltd.	Chao Lung Investment Co., Ltd.	21.83
	Chen Huei Enterprise Co., Ltd.	18.43

Corporate Shareholder Name	The Major Shareholders of Corporate Shareholders	Ratio of shareholding (%)
	Tai Fa Investment Co., Ltd.	18.29
	Tai Hsiang Investment Co., Ltd.	12.16
	Tai He Investment Co., Ltd.	11.93
	Hong Long Enterprise Co., Ltd.	9.91
	Tai Sheng Investment Co., Ltd.	3.17
	Tai Chien Investment Co., Ltd.	1.93
	Bao Sheng Investment Co., Ltd.	0.83
	Hong Yong Construction Corporation	0.19
Bao Sheng Investment Co., Ltd.	Tai He Investment Co., Ltd.	56.09
	Tai Fa Investment Co., Ltd.	11.48
	Tai Hsiang Investment Co., Ltd.	11.40
	Chao Lung Investment Co., Ltd.	9.25
	Tai Chun Enterprise Co., Ltd.	2.73
	Chen Huei Enterprise Co., Ltd.	1.99
	Yu Bao Enterprise Co., Ltd.	1.91
	Yin Feng Enterprise Co., Ltd.	1.82
	Han Bao Enterprise Co., Ltd.	1.74
	Wang Hsing Enterprise Co., Ltd.	1.58
Tai Sheng Investment Co., Ltd.	Tai He Investment Co., Ltd.	23.93
	Chao Lung Investment Co., Ltd.	19.86
	Tai Fa Investment Co., Ltd.	13.40
	Tai Hsiang Investment Co., Ltd.	10.29
	Yu Bao Enterprise Co., Ltd.	5.98
	Han Bao Enterprise Co., Ltd.	5.27
	Chen Huei Enterprise Co., Ltd.	4.42
	Yu Chun Enterprise Co., Ltd.	4.40
	Fu Tai Construction Corporation	3.77
	Quanyi Construction Corporation	3.54
Hong Chia Investment Co., Ltd.	Chao Lung Investment Co., Ltd.	24.20
	Tai He Investment Co., Ltd.	12.42
	Tai Hsiang Investment Co., Ltd.	10.03
	Fu Tai Construction Corporation	9.97
	Hong Tai Construction Co., Ltd.	9.97
	Tai Sheng Investment Co., Ltd.	7.96
	Tai Fa Investment Co., Ltd.	6.37
	Lian Mao Investment Co., Ltd.	4.78
	Bao Zuo Investment Co., Ltd.	3.18
	Fornet Tech Co., Ltd.	3.18
Min Huei Enterprise Co., Ltd.	Lian Mao Investment Co., Ltd.	16.53
	Wei Wang Investment Co., Ltd.	14.75
	Hong Chang Enterprise Co., Ltd.	13.66
	Sheng Hsiang Enterprise Co., Ltd.	10.11

Corporate Shareholder Name	The Major Shareholders of Corporate Shareholders	Ratio of shareholding (%)
	Tai Chun Investment Co., Ltd.	10.02
	Tai Chun Enterprise Co., Ltd.	8.48
	Han Bao Enterprise Co., Ltd.	8.47
	Chen Huei Enterprise Co., Ltd.	6.42
	Yu Bao Enterprise Co., Ltd.	5.80
	Run Hsiang Enterprise Co., Ltd.	4.76
KGI Taiwan Premium Selection High Dividend 30 ETF Fund Account	Not Applicable
Hontai Life Insurance Co., Ltd.	Lin, Chang-Lung	19.35
	Tai Lain Investment Co., Ltd.	4.97
	Hong Chang Enterprise Co., Ltd.	4.89
	Wei Wang Investment Co., Ltd.	4.89
	Hong Sheng Industrial Co., Ltd.	4.88
	Quanyi Construction Corporation	4.85
	Rui Jin Enterprise Co., Ltd.	4.80
	Min Huei Enterprise Co., Ltd.	4.58
	Hong Long Enterprise Co., Ltd.	4.40
	Yin Feng Enterprise Co., Ltd.	4.34
Yuanta Taiwan High Dividend Low Volatility ETF Fund Account	Not Applicable
Chao Lung Investment Co., Ltd.	Y.L. Lin Hung Tai Education and Culture Charity Trust	92.88
	Fu Tai Construction Corporation	2.77
	Han Bao Enterprise Co., Ltd.	2.07
	Bao Qing Investment Co., Ltd.	1.52
	Tai Ye Enterprise Co., Ltd.	0.69
	Quanyi investment Co., Ltd.	0.07
Tai Fa Investment Co., Ltd.	Y.L. Lin Hung Tai Education and Culture Charity Trust	100
Tai Hsiang Investment Co., Ltd.	Y.L. Lin Hung Tai Education and Culture Charity Trust	100
Tai He Investment Co., Ltd.	Y.L. Lin Hung Tai Education and Culture Charity Trust	89.86
	Yin Feng Enterprise Co., Ltd.	5.09
	Yu Bao Enterprise Co., Ltd.	2.98
	Tai Ye Enterprise Co., Ltd.	0.51
	Hong Chia Investment Co., Ltd.	0.49
	Bao Qing Investment Co., Ltd.	0.49
	Tai Chien Investment Co., Ltd.	0.43
	Quanyi investment Co., Ltd.	0.15
Tai He Construction Management Co., Ltd.	Hong Long Enterprise Co., Ltd.	20.50
	Garnet Enterprise Co, Ltd.	19.61
	Min Huei Enterprise Co., Ltd.	18.75

Corporate Shareholder Name	The Major Shareholders of Corporate Shareholders	Ratio of shareholding (%)
	Fornet Enterprise Co., Ltd.	15.18
	Sheng Hsiang Enterprise Co., Ltd.	15.14
	Fornet Tech Co., Ltd.	10.71
Tai Lain Investment Co., Ltd.	Tai Hsiang Investment Co., Ltd.	43.02
	Chao Lung Investment Co., Ltd.	16.65
	Tai Fa Investment Co., Ltd.	15.27
	Tai He Investment Co., Ltd.	14.85
	Yin Feng Enterprise Co., Ltd.	3.26
	Han Bao Enterprise Co., Ltd.	3.26
	Fu Tai Construction Corporation	3.23
	Hong Tai Construction Co., Ltd.	0.44
Tai Chun Investment Co., Ltd.	Tai Fa Investment Co., Ltd.	30.63
	Tai He Investment Co., Ltd.	20.32
	Chao Lung Investment Co., Ltd.	19.71
	Tai Hsiang Investment Co., Ltd.	18.91
	Tai Chun Enterprise Co., Ltd.	2.91
	Han Bao Enterprise Co., Ltd.	2.88
	Yin Feng Enterprise Co., Ltd.	2.74
	Run Hsiang Enterprise Co., Ltd.	1.89

(II) Disclosure of professional qualification of the directors and supervisors and independence of directors

Qualification Name	Professional qualification and experience	Compliance of independence
Capital Securities Corp. Representative: Chairman, Chia, Chung-Tao	• With at least five years of work experience or have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the Company.
• Former Director and President of Capital Securities, and currently the Chairman of the Company.
• Does not meet any descriptions stated in Article 30 of the Company Act.	-	0
Capital Securities Corp. Representative: Director, Liu, Ching-Tsun	• With at least five years of work experience or have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the Company.
• Former Chairman of Capital Securities Corp., currently Director of Capital Securities Corp., Director of Taiwan Oasis Technology Co., Ltd., Independent director of PharmaEssentia Corporation
• Does not meet any descriptions stated in Article 30 of the Company Act.	-	1

| Qualification
Name | Professional qualification and experience | Compliance of independence | Number of positions as an Independent Director in other public listed companies |
| --- | --- | --- | --- |
| Capital Securities Corp.
Representative: Director, Lee, Wen-Chu | • With at least five years of work experience or have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the Company.
• Former President and Chairman of Capital Futures, Director of Capital Securities, and currently President of Capital Securities Corp.
• Does not meet any descriptions stated in Article 30 of the Company Act. | - | 0 |
| Hung Yeh
Investment Co., Ltd.
Representative: Director, Lin, Tzu-Yi | • With at least five years of work experience or have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the Company.
• Currently the Vice President of Sheng Hsiang Enterprise Operation Center, director of Capital Securities Corp., and supervisor of Fornet Enterprise, Shang Wei Investment, and Tai Lain Investment.
• Does not meet any descriptions stated in Article 30 of the Company Act. | - | 0 |
| Lin, Juh-Cheng
Independent Director | • With at least five years of work experience or have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the Company.
• Former Executive Vice President of TAIFFEX (Taiwan Futures Exchange); Adjunct Lecturer, Graduate Institute of Management, National Taiwan Normal University. Currently Director of the Securities and Futures Analysis Association, Chairman of the Audit Committee of the Securities Association, and Independent Director of JMS, Lextar Investment Holding Co., Ltd., and Lextar Electronics Corporation.
• Does not meet any descriptions stated in Article 30 of the Company Act. | (1) Not employed by the Company or any of its affiliated companies.
(2) Not a director, supervisor of the Company or any its affiliated companies.
(3) Does not hold more than 1% of the company’s outstanding shares in his/her own name or under the name of spouse, underage children, or any other person; nor is any party listed herein one of the ten largest natural person shareholders of the company.
(4) Not the spouse, the kindred to the second tier under the Civil Code or the direct kin within the third tier under the Civil Code of the managerial officers stated in Subparagraph 1 or other roles stated aforementioned Subparagraph.
(5) Not a director, supervisor or employee of an institutional shareholder | 3 |
| Hsiao, Nai-Ching
Independent Director | • With at least five years of work experience or have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the Company.
• Former judge of Supreme Court; currently Managing Partner of a law firm and Arbitrator of the Chinese Arbitration Association, Taipei (CAA).
• Does not meet any descriptions stated in Article 30 of the Company Act. | (5) Not a director, supervisor or employee of an institutional shareholder | 0 |

10 -

| Qualification
Name | Professional qualification and experience | Compliance of independence | Number of positions as an Independent Director in other public listed companies |
| --- | --- | --- | --- |
| Wu, Yung- Sheng Independent Director | • With at least five years of work experience or have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the Company.
• Former Dean and School Consultant of Ming Chuan University School of Law and Chairperson of the Department of Law, and Adjunct Professor of the Department of Finance and Banking; Member and Convener of the Trading, Clearing and Disciplinary Committees, Taiwan Futures Exchange (TAIFEX). Currently the Adjunct Professor of Institute of Financial and Economic Law, CTBC Business School, and the Independent Director of Rubytech Corp. and Dexin Corp.
• Does not meet any descriptions stated in Article 30 of the Company Act. | directly holding more than 5% of the outstanding shares issued by the company, or a director, supervisor or employee of an institutional shareholder who is among the top 5 shareholders, or a representative of an institutional shareholders appointed as the director or supervisor of the company according to Paragraph 1 or 2, Article 27 of The Company Act.
(6) Not a director, supervisor or employee of the company controlling over one half of the Company director seats or voting shares under one person.
(7) Not a director, supervisor or employee of the Company whose chairperson and president or equivalent role is same person or its spouse.
(8) A director, supervisor, managerial officer, or shareholder holding 5% or more of the shares, of a specified company or institution that has a financial or business relationship with the Company.
(9) Not a professional or owner, partner, director, supervisor, managerial officer or the spouse of these roles of a sole proprietorship, partnership of the Company or institution that audits or provides related business, legal, financial, accounting services or consultation with service fees over the last two years for the company or its affiliates.
(10) Have neither a spousal relationship nor a relationship within the second degree of kinship with any other director.
(11) Does not have the government, legal person or its representative elected as stipulated in Article 27 of the Company Act. | 2 |

11 -

Diversity and Independence of board of directors

The overall composition of the board of directors shall be taken into consideration in the selection of the Company's directors. The composition of the board of directors shall be determined by taking diversity into consideration and formulating an appropriate policy on diversity based on the company's business operations, operating dynamics, and development needs. It is advisable that the policy include, without being limited to, the following two general standards:

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

Each board member shall have the necessary knowledge, skill, and experience to perform their duties; the abilities that must be present in the board as a whole are as follows: ability to make judgments about operations, accounting and financial analysis ability, business management ability, crisis management ability, knowledge of the industry, an international market perspective, leadership ability, decision making ability and knowledge related to sustainable development.
More than half of the directors shall be persons who have neither a spousal relationship nor a relationship within the second degree of kinship with any other director.
The Board of Directors of the Company shall give guidance the Company's strategy, supervision to the management level, and be responsible to the Company and shareholders. The operations and arrangements of its corporate governance system shall ensure that the Board of Directors exercises its functions and powers in accordance with laws and regulations, Articles of Association or the resolutions of the General Meeting of shareholders. To meet the needs of the Company's business development, the Board of Directors should be composed of experts and scholars in industry, accounting, management, etc.; members of the board should have business experience, legal or accounting qualifications. The Company gives focus to gender equality in the composition of the Board of Directors, with at least one female director.
The Company's current Board of Directors is composed of 7 Directors, including 3 Independent Directors and 4 Legal Representative Directors, including 5 male and 2 female Directors, accounting for 71% and 29% respectively, and the directors who are employees account for 14%.

Chairman Chia, Chung-Tao, Director Lee, Wen-Chu, Director Liu, Ching-Tsun and Director Lin, Tzu-Yi all have experience in operation management, financial accounting, international market and leadership decision-making in the futures, securities, and financial industries. Independent Director Lin, Juh-Cheng was serving as the Executive Vice President of TAIFEX, and Adjunct Lecturer, Graduate Institute of Management, National Taiwan Normal University, and is currently Director, Securities Analysis Association, and Convener of the Audit Committee of the Securities Association; Independent Director Hsiao, Nai-Ching is a retired judge of the Supreme Court and currently serves as Managing Lawyer of a law firm and Arbitrator of the Chinese Arbitration Association, Taipei (CAA); and Independent Director Wu, Yung-Sheng was serving as the school consultant of Ming Chuan University and an adjunct professor of the Department of Finance, and as Member and Convener of the Trading, Clearing and Disciplinary Committees, TAIFEX. He is currently Adjunct Professor of the Institute of Financial and Economic Law, CTBC Business School, and Commercial Mediator of the Commercial Court of the Intellectual Property and Commercial Court. According to their academic experience, 5 directors have business experience, 2 have accounting expertise,

12 -

and 2 have legal expertise.

In order to improve corporate governance and strengthen the functions and independence of independent directors, the Company's "Corporate Governance Best-Practice Principles" specifies that no independent director may serve for more than three consecutive terms. None of the independent directors has served for more than three consecutive terms at present. None of the directors are spouses or related within the second degree of kinship.

Specific Management Objectives and Implementation Status of the Company's Board Diversity Policy:

Title	Chairman	Director			Independent Director
Name	Chia, Chung-Tao	Lee, Wen-Chu	Liu, Ching-Tsun	Lin, Tzu-Yi	Lin, Juh-Cheng	Hsiao, Nai-Ching	Wu, Yung-Sheng
Gender	Male	Male	Male	Female	Male	Female	Male
Age	Age 61-70	Age 61-70	Age 71-80	Age 51-60	Age 61-70	Age 61-70	Age 61-70
Nationality	Republic of China
Seniority of independent directors	-	-	-	-	Less than 3 years	3-6 years	3-6 years
Professional background
Industry	V	V	V	V	V
Legal						V	V
Financial accounting				V	V
Professional knowledge and skills
Make judgments about operations	V	V	V	V	V	V	V
Financial and accounting analysis				V	V
Business management	V	V	V	V	V	V	V
Crisis management	V	V	V	V	V	V	V
Knowledge of the industry	V	V	V	V	V		v
An international market perspective	V	V	V	V	V	V	V
Leadership ability	V	V	V	V	V	V	V
Decision making ability	V	V	V	V	V	V	V
Sustainable development	V	V	V	V	V	V	V

Management objectives	Status of achievement
Board members cover diverse professional fields including industry, accounting/finance, and management.	Achieved
All independent directors possess knowledge related to sustainable development or have completed relevant sustainability education and training	Achieved
Directors of either gender constitute at least one-third of the board seats.	Not achieved

Reasons for non-achievement and improvement measures:

The current Board of Directors was re-elected at the Annual General Meeting of Shareholders on May 30, 2024, and only two female directors were elected, which is the reason why the number of directors of either gender did not reach one-third of the total number of directors. The Company will continue to promote gender diversity, actively seek qualified female professionals, and strengthen the career development of the Company's senior female management to expand the source of female director candidates, in order to enhance the overall diversity of the Board of Directors, and further strengthen the diversity and synergistic effect of the Board of Directors.

14 -

(III) Background information of president, executive vice presidents, vice presidents, and the heads of various departments and branches
March 31, 2026

Title	Nationality	Name	Gender	Job commencement date	Shareholding		Shareholdings of spouse and underage children		Shares held in the names of others		Academic Background & Experience	Current positions in other companies	Spouse or relatives of second degree or closer acting as managerial officer			Acquisition of employee stock warrants by managerial officers	Remark
					Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding			Title	Name	Relation
President	Republic of China	Mao, Jen-Hua	Male	2005.9.6	120,684	0.05%	0	0	0	0	Business Administration Executive Program, National Chengchi University Senior Executive Vice President of Capital Futures Corp.	Director and President of Capital International Technology Corp. Director of True Partner Capital Technology (Chengdu) Co., Ltd. Director of QIT Technology Co., Ltd.	-	-	-	-	-
Senior Executive Vice President	Republic of China	Huang, Wei-Ben	Male	2014.4.1	0	0	0	0	0	0	Master of Financial, Operating National Kaohsiung First University of Science Sales Assistant Vice President., SinoPac Futures Corp.	None	-	-	-	-	-
Senior Executive Vice President	Republic of China	Chen, Chi-Hao	Male	2020.9.14	0	0	0	0	0	0	J.D., Washington University in St. Louis, USA Manager, Yuanta Financial Holdings Lawyer, Y.R. Lee & Partners	Director of Capital International Technology Corp. Supervisor of QIT Technology Co., Ltd. Supervisor of True Partner Capital Technology (Chengdu) Co., Ltd.	-	-	-	-	-
Senior Executive Vice President	Republic of China	Yang, Rui-Ling	Female	2011.12.28	0	0	0	0	0	0	Department of Business Administration Shih Chien University Sales Executive Vice President, Masterlink Futures Corp.	None	-	-	-	-	-
Executive Vice President	Republic of China	Hsu, Ji-Ching	Male	2005.1.1	81,609	0.03%	0	0	0	0	Department of International Trade, ITamkang University Manager, Masterlink Futures Corp.	None	-	-	-	-	-
Executive Vice President	Republic of China	Lin, Li-Chuan	Female	2006.6.1	121,053	0.05%	0	0	0	0	Department of Business, Providence University Assistant Vice President, Polaris Futures Corp.	Supervisor of Capital International Technology Corp.	-	-	-	-	-
Executive Vice President	Republic of China	Lin, Xiao-Chian	Male	2010.6.10	112,922	0.05%	0	0	0	0	Master of Business Administration, University of La Verne Vice President, J.P. Morgan Chase & Corp.	None	-	-	-	-	-
Executive Vice President	Republic of China	Kuo, Shu-Zhen	Female	2013.1.1	50,000	0.02%	0	0	0	0	Department of Finance, National Kaohsiung First University of Science Vice President, New Edge Futures Corp.	None	-	-	-	-	-

Title	Nationality	Name	Gender	Job commencement date	Shareholding		Shareholdings of spouse and underage children		Shares held in the names of others		Academic Background & Experience	Current positions in other companies	Spouse or relatives of second degree or closer acting as managerial officer			Acquisition of employee stock warrants by managerial officers	Remark
					Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding			Title	Name	Relation
Executive Vice President	Republic of China	Lee, Chung-Wei	Male	2014.7.14	30,000	0.01%	0	0	0	0	Master of Science, Columbia University in the City of New York Sales Vice President, KGI Securities Corp.	None	-	-	-	-	-
Executive Vice President	Republic of China	Cho, Cheng-Kang	Male	2016.4.1	40,000	0.02%	0	0	0	0	Department of Finance, National Taichung University of Science and Technology Sales Assistant Vice President of Capital Securities Corp.	None	-	-	-	-	-
Executive Vice President	Republic of China	Ho, Cho-I	Male	2016.8.1	2,000	0.00%	0	0	0	0	Master in Information Management, Texas State University Vice President, Barclays Securities	None	-	-	-	-	-
Executive Vice President	Republic of China	Chung, Cheng-Huang	Male	2018.4.2	15,000	0.01%	0	0	0	0	Ph.D. of Finance Department, National Taiwan University Assistant Vice President of Risk Management Dept., Waterland Securities	None	-	-	-	-	-
Executive Vice President	Republic of China	Cheng, Shin-Pin	Male	2022.6.20	0	0	0	0	0	0	Master of Business Administration, State University of New York at Binghamton Assistant Vice President, KGI Securities Corp.	None	-	-	-	-	-
Executive Vice President	Republic of China	Wang, Min-Nan	Male	2024.3.1	20,000	0.01%	0	0	0	0	Master of Science in Finance, National Chengchi University General Manager, Shanghai Jifeng Investment Management Co., Ltd.	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Liu, Pao-Hua	Male	2015.4.1	63,016	0.03%	0	0	0	0	Department of Finance, National Taiwan University Assistant Vice President of Taiwan International Futures Corp.	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Chang, Mu-Min	Male	2018.4.1	4,520	0.00%	0	0	0	0	Department of Transportation and Communication Management Science & Institute of Telecommunications Management, National Cheng Kung University Sales Vice President, Capital Futures Corp.	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Lu, Wei-Liang	Male	2020.4.1	100	0.00%	100	0.00%	0	0	Master's Program in Finance, Fu Jen Catholic University Sales Assistant Vice President, MasterLink Futures Corp.	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Chen, Yung-Lin	Male	2020.4.1	27,000	0.01%	0	0	0	0	MBA, Western Washington University Assistant Vice President, Concord Securities Co., Ltd.	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Chen, Chih-Chung	Male	2020.12.1	40,000	0.02%	0	0	0	0	Department of Chinese Literature, National Chengchi University Senior Vice President, Capital Securities Corp.	None	-	-	-	-	-

16 -

Title	Nationality	Name	Gender	Job commencement date	Shareholding		Shareholdings of spouse and underage children		Shares held in the names of others		Academic Background & Experience	Current positions in other companies	Spouse or relatives of second degree or closer acting as managerial officer			Acquisition of employee stock warrants by managerial officers	Remark
					Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding			Title	Name	Relation
Senior Executive Officer	Republic of China	Yi, Chien-Hsiung	Male	2021.9.1	20,000	0.01%	0	0	0	0	Master in Computer Science, National Tsing Hua University Executive Vice President of CSC Futures (HK) Ltd.	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Lai, Han-Sen	Male	2022.3.14	0	0	0	0	0	0	Master of Information Management, Du-Yeh University Executive Vice President, Proprietary Trading Department, Concord Futures	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Shen, Chun-Liang	Male	2023.4.1	23,000	0.02%	0	0	0	0	Bachelor's degree from National Taipei University of Business Assistant Vice President, Omni-Channel Department, Capital Futures Corp	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Chen, Hsien-Chang	Male	2025.2.11	0	0	0	0	0	0	Department of Industrial Education National Taiwan Normal University Engineer, Gamma Technology & IT Consultancy Co., Ltd.	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Chao, Ming-Wei	Male	2026.2.2	0	0	0	0	0	0	Master of Science in Finance, National Chengchi University Executive Vice President, Ping An Securities	None	-	-	-	-	-
Senior Executive Officer	Republic of China	Hsin, Jung-Hung	Male	2026.2.2	0	0	0	0	0	0	Department of Shipping and Transportation Management National Taiwan Ocean University Senior Vice President, Proprietary Trading Department, Fubon Securities Co., Ltd.	None	-	-	-	-	-
Senior Vice President	Republic of China	Lian, Jing-Lian	Female	2003.5.2	54,479	0.02%	0	0	0	0	Department of Statistics, Tamkang University Manager, Yuanta Futures Co., Ltd.	None	-	-	-	-	-
Senior Vice President	Republic of China	Peng, Chien-Cheng	Male	2012.7.2	5,495	0.00%	0	0	0	0	Master of Finance, National Chung Hsing University Vice President, President Futures Corp.	None	-	-	-	-	-
Senior Vice President	Republic of China	Lin, Hsiu-Chu	Female	2017.4.1	20,000	0.01%	0	0	0	0	Department of Insurance, Shih Chien University Capital Futures Corp., Manager	None	-	-	-	-	-
Senior Vice President	Republic of China	Chu, Chun-Chang	Male	2020.4.1	0	0	0	0	0	0	Department of Information Management and Communication Arts, Chaoyang University of Technology Capital Futures Corp., Senior Specialist of Introducing Broker Sales Department	None	-	-	-	-	-
Senior Vice President	Republic of China	Chang, Su-Fang	Female	2020.4.1	48,575	0.02%	7,000	0.00%	0	0	National Formosa University Senior Specialist, Capital Futures Corp.	None	-	-	-	-	-
Senior Vice President	Republic of China	Liu, Kun-Ming	Male	2023.1.3	0	0	0	0	0	0	Department of Finance and Banking, Shih Chien University Sales Vice President, Yuanta Futures	None	-	-	-	-	-

17 -

Title	Nationality	Name	Gender	Job commencement date	Shareholding		Shareholdings of spouse and underage children		Shares held in the names of others		Academic Background & Experience	Current positions in other companies	Spouse or relatives of second degree or closer acting as managerial officer			Acquisition of employee stock warrants by managerial officers	Remark
					Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding			Title	Name	Relation
Senior Vice President	Republic of China	Li, Guan-Huei	Male	2024.3.18	50,000	0.02%	0	0	0	0	Department of Electrical Engineering, National Yunlin University of Science and Technology. Fubon Futures Corp., Assistant Manager.	None	-	-	-	-	-
Senior Vice President	Republic of China	Chang, Yun-Hsuan	Female	2022.4.1	20,000	0.01%	0	0	0	0	Information Management Department, Wan-Neng Senior & Commercial Vocational School Manager, Yuanta Futures	None	-	-	-	-	-
Vice President	Republic of China	Chen, Tsung-Yu	Male	2018.4.1	25,000	0.01%	0	0	0	0	Department of Financial Engineering and Actuarial Mathematics, Soochow University Capital Futures Corp., Manager	None	-	-	-	-	-
Vice President	Republic of China	Wu, Wen-Jie	Male	2022.4.1	0	0	0	0	0	0	Dep. of Information Management, Ming Chuan University Project Manager, MasterLink Securities Corp.	None	-	-	-	-	-
Vice President	Republic of China	Hsu, Hua-Shan	Female	2023.4.1	28,000	0.01%	0	0	0	0	Department of Accounting, National Chengchi University KPMG Vice President, Audit Department	None	-	-	-	-	-
Vice President	Republic of China	Jen, Ming-Ying	Female	2023.5.15	10,000	0.00%	0	0	0	0	Department of Law, Soochow University Lawyer, Y.R. Lee & Partners	None	-	-	-	-	-
Vice President	Republic of China	Chang, Chih-Hung	Male	2025.3.10	0	0	0	0	0	0	Department of Political Science of Fu Hsing Kang College, National Defense University Sales Manager, KGI Futures	None	-	-	-	-	-
Assistant Vice President	Republic of China	Chang, Ya-Ju	Female	2020.9.1	23,051	0.01%	0	0	0	0	Business Administration of National Taipei University Senior Manager of Finance Department, Capital Futures	None	-	-	-	-	-
Assistant Vice President	Republic of China	Cheng, Chao-Ting	Male	2024.12.10	0	0	0	0	0	0	Master of Banking and Finance, Trankang University Capital Futures Corp., Manager	None	-	-	-	-	-
Assistant Vice President	Republic of China	Huang, Chuan-Sheng	Male	2025.5.9	40,230	0.02%	1,100	0.00%	0	0	Department of Business Administration Chihlee Institute of Technology Capital Futures Corp., Sales Department, Assistant Vice President	None	-	-	-	-	-

Note: Where the chairperson of the Board of Directors and the general manager or person of an equivalent post (the highest level manager) of a are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response thereto.

II. Remuneration paid to directors, supervisors, presidents, and executive vice presidents in the most recent year

(I) Remuneration of general directors and independent directors (disclosure of individual names and remuneration methods)

2025 (Unit: NT$ Thousand)

Title	Name	Remuneration to Directors	The sum of A, B, C and D as a percentage of after-tax profit	Remuneration as an employee	The sum of A, B, C, D, E, F and G as a percentage of after-tax net profit	Remuneration received from the invested companies other than the subsidiaries and the parent company
Remuneration (A)	Pension (B)	Remuneration to directors (C)	Fees for services rendered (D)	Salaries, bonuses, special allowances etc. (E)	Pension (F)	Remuneration to employees (G)
The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company
Director	Capital Securities Corp.	0	0	0	0	14,784
Chairman	CAPITAL SECURITIES CORP. Representative: Chia, Chung-Tao	16,417	16,417	0	0	0
Director	CAPITAL SECURITIES CORP. Representative: Liu, Ching-Tsun	0	0	0	0	0
Director	CAPITAL SECURITIES CORP. Representative: Lee, Wen-Chu	0	0	0	0	0
Director	Hung Yeh Investment Co., Ltd.	0	0	0	0	4,928
Director	Hung Yeh Investment Co., Ltd Representative: Wang, Hui-Chin (Note 2)	0	0	0	0	0

Title	Name	Remuneration to Directors							The sum of A, B, C and D as a percentage of after-tax profit	Remuneration as an employee								The sum of A, B, C, D, E, F and G as a percentage of after-tax net profit
		Remuneration (A)		Pension (B)		Remuneration to directors (C)		Fees for services rendered (D)			Salaries, bonuses, special allowances etc. (E)		Pension (F)		Remuneration to employees (G)
		The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company		All companies shown in the financial report		Stock amount	Stock amount	Cash amount	Stock amount	DISK AMOUNT
														Cash amount	Cash amount	Cash amount	Cash amount	Stock amount	Cash amount	DISK AMOUNT
Director	Hung Yeh Investment Co., Ltd Representative: Lin, Tzu-Yi (Note 2)	0	0	0	0	0	0	0	0	0.00%	0.00%	0	0	0	0	0	0	0	0	0.00%	0.00%	2,560
Independent Director	Lin, Juh-Cheng	1,200	1,200	0	0	0	0	130	130	1,330 0.10%	1,330 0.10%	0	0	0	0	0	0	0	0	1,330 0.10%	1,330 0.10%	0
Independent Director	Hsiao, Nai-Ching	1,200	1,200	0	0	0	0	130	130	1,330 0.10%	1,330 0.10%	0	0	0	0	0	0	0	0	1,330 0.10%	1,330 0.10%	0
Independent Director	Wu, Yung-Sheng	1,200	1,200	0	0	0	0	130	130	1,330 0.10%	1,330 0.10%	0	0	0	0	0	0	0	0	1,330 0.10%	1,330 0.10%	0

Please describe the remuneration policy, system, standard and structure of independent directors, and describe the linkage to the remuneration amount according to the responsibilities, risks, time, and other factors:
In addition to the responsibilities of the Board of Directors, all three independent directors of the Company also serve as members of the Audit Committee, Remuneration Committee, and Ethics and Sustainability Committee. The remuneration of the independent directors of the Company are determined in accordance with the Company Act and Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, considering factors such as directors' participation in the Company's operations, contribution, and operational performance. It is stipulated in the Company's Articles of Association where the extent of its participation in the Company's operations and the value of its contributions are determined compared to the industry level where a reasonable remuneration different from directors will also be determined.
Other than those disposed in the Table above, remuneration received by directors in the recent year for services provided (e.g. serving as a consultant to all non-employees of the parent company/companies in the financial report/reinvested enterprises, etc.): None.
Note 1: The driver's compensation is NT$1,159 thousand.
Note 2: Wang, Hui-Chin was appointed and stepped down on February 24, 2025, and Lin, Tzu-Yi was appointed and took the office on February 25, 2025.

(II) Remuneration of president and executive vice president (with the name(s) indicated for each remuneration range)
2025 (Unit: NT$ Thousand)

Title	Name	Salary (A)		Pension (B)		Bonuses and allowances etc. (C)		Remuneration to employees (D)					The sum of A, B, C, and D as a percentage of after-tax net profit (%)
		The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company	All companies shown in the financial report	The Company		All companies shown in the financial report		The Company	All companies shown in the financial report
								Cash amount	Stock amount	Cash amount	Stock amount
CEO	Chia, Chung-Tao	27,693	27,693	1,487	1,487	73,985	73,985	2,889	0	2,889	0	106,054	106,054	None
President	Mao, Jen-Hua
Senior Executive Vice President	Huang, Wei-Ben
	Chen, Chi-Hao
	Yang, Rui-Ling
Executive Vice President	Lin, Li-Chuan
	Kuo, Shu-Zhen
	Cho, Cheng-Kang
	Hsu, Ji-Ching
	Lin, Xiao-Chian
	Lee, Chung-Wei
	Ho, Cho-I
	Wang, Min-Nan
	Cheng, Shin-Pin
Chung, Cheng-Huang (Note)
Senior Executive Officer	Yi, Chien-Hsiung

Note: Chung, Cheng-Huang took the office on April 1, 2025.

Table of salaries scale

The brackets of remunerations to all Presidents and Executive Vice Presidents of the Company	Names of the presidents and the executive vice presidents
	The Company	All companies shown in the financial report
<NT$1,000,000	Chia, Chung-Tao	Chia, Chung-Tao
NT$1,000,000 ~ NT$2,000,000 (exclusive)	-	-
NT$2,000,000 ~ NT$3,500,000 (exclusive)	Wang, Min-Nan	Wang, Min-Nan
NT$3,500,000 ~ NT$5,000,000 (exclusive)	Yi, Chien-Hsiung; Chung, Cheng-Huang; Cho, Cheng-Kang; Lee, Chung-Wei; Ho, Cho-I	Yi, Chien-Hsiung; Chung, Cheng-Huang; Cho, Cheng-Kang; Lee, Chung-Wei; Ho, Cho-I
NT$5,000,000 ~ NT$10,000,000 (exclusive)	Chen, Chi-Hao; Lin, Li-Chuan; Kuo, Shu-Zhen; Huang, Wei-Ben; Hsu, Ji-Ching; Cheng, Shin-Pin; Lin, Xiao-Chian	Chen, Chi-Hao; Lin, Li-Chuan; Kuo, Shu-Zhen; Huang, Wei-Ben; Hsu, Ji-Ching; Cheng, Shin-Pin; Lin, Xiao-Chian
NT$10,000,000 ~ NT$15,000,000 (exclusive)	Mao, Jen-Hua	Mao, Jen-Hua
NT$15,000,000 ~ NT$30,000,000 (exclusive)	Yang, Rui-Ling	Yang, Rui-Ling
NT$30,000,000 ~ NT$50,000,000 (exclusive)	-	-
NT$50,000,000 ~ NT$100,000,000 (exclusive)	-	-
>NTD100,000,000	-	-
Total	16	16

(III) Name of the managers received remuneration and the distribution of remuneration

2025 (Unit: NT$ Thousand)

Title		Name	Stock amount	Cash amount	Total	As a percentage of net profit after tax (%)
Managerial officer	CEO	Chia, Chung-Tao	0	9,933	9,933	0.75%
	President	Mao, Jen-Hua
	Senior Executive Vice President	Huang, Wei-Ben; Yang, Rui-Ling; Chen, Chi-Hao
	Executive Vice President	Lin, Xiao-Chian; Lin, Li-Chuan; Kuo, Shu-Zhen; Cho, Cheng-Kang; Hsu, Ji-Ching; Lee, Chung-Wei; Cheng, Shin-Pin; Ho, Cho-I; Wang, Min-Nan; Chung, Cheng-Huang
	Senior Vice President	Lian, Jing-Lian; Peng, Chien-Cheng; Chang, Su-Fang; Chu, Chun-Chang; Lin, Hsiu-Chu; Chang, Yun-Hsuan; Liu, Kun-Ming; Li, Guan-Huei
Vice President	Hsu, Hua-Shan; Chen, Tsung-Yu; Wu, Wen-Jie; Jen, Ming-Ying; Chang, Chih-Hung

Title	Name	Stock amount	Cash amount	Total	As a percentage of net profit after tax (%)
Assistant Vice President	Chang, Ya-Ju; Huang, Chuan-Sheng; Cheng, Chao-Ting
	Senior Executive Officer	Yi, Chien-Hsiung; Chen, Yung-Lin; Liu, Pao-Hua; Chen, Chih-Chung; Lai, Han-Sen; Chang, Mu-Min; Shen, Chun-Liang; Lu, Wei-Liang; Hsin, Jung-Hung; Chen, Hsien-Chang; Chao, Ming-Wei

23 -

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

Remuneration payment information to the Company Directors supervisor, the President, and Executive Vice President for the past 2 years

Unit: NT$ Thousand

Item	2024		2025
		The Company	All companies shown in the consolidated report	The Company	All companies shown in the consolidated report
Remuneration for Directors (including independent directors)	Remuneration amount	33,581	33,581	40,759	40,759
	As a percentage of net profit after tax	2.81%	2.81%	3.06%	3.06%
President’s and Executive Vice Presidents’ remuneration	Remuneration amount	99,690	99,690	106,049	106,049
	As a percentage of net profit after tax	8.37%	8.37%	7.97%	7.97%

Remuneration policies, standards, and packages, the procedure for determining remuneration, and its linkage to operating performance and future risk exposure

(1) For distribution of remuneration to directors and managerial officers of the Company, according to Article 27 of the Articles of Association, employees' remuneration shall be distributed at 0.6% to 2% of the profit for the year, including at least 0.4% to be allocated as remuneration for entry-level employees, and directors' remuneration shall be distributed at a rate not exceeding 3% of the profit for the year.

(2) The remuneration of the directors of the Company is based on the market and the remuneration level of the same industry, and is paid in accordance with the general standard of the industry with consideration to the individual performance, degree of participation and contribution to the Company's operations, responsibilities, achievement of the Company's operating goals and financial status, evaluation of the rationality of its linkage between the individual and the Company's overall operational performance and future risks, and pay attendance fees based on the actual attendance at the Board of Directors. The remuneration of directors is reviewed by the remuneration committee and the Board of Directors. The remuneration committee regularly evaluates the remuneration of directors and reviews the remuneration system in a timely manner according to the operation and relevant laws and regulations to pursue a balance between the Company's sustainable operation and risk control.

(3) The remuneration of the managerial officers includes salary and bonus, among which the salary refers to the standard of the same industry and their title, rank, academic (experience), professional ability and responsibilities.

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The Company has established a fair and reasonable performance management system for senior managers and their respective departments. Performance evaluations for senior managers are conducted regularly and serve as the basis for promotion, salary adjustment, and bonus distribution. These evaluations are also effectively linked to the career development of senior managers, thereby enhancing departmental and overall corporate operational performance. The performance evaluation results of senior managers and the corresponding performance bonuses linked to their compensation are submitted to the Remuneration Committee for review and subsequently to the Board of Directors for approval.

(4) To achieve the Company's operational and sustainable development goals, annual performance evaluations are conducted for senior managers to assess their work performance over the year. The evaluation includes both financial and non-financial indicators. Financial indicators: earnings target achievement rate, earnings growth rate, trading volume market share, trading volume target achievement rate, profit target achievement rate, and operating expense control rate. Non-financial indicators: business planning, leadership, work performance, professional knowledge and learning ability, integrity, work attitude, and ESG aspects related to integrity and sustainable development (including the duty of care and loyalty, fair and friendly services, adherence to the integrity management principles, awareness of information security and personal data protection, and knowledge of sustainable development), the degree of compliance with legal and regulatory requirements, and risk control. Among these, the performance indicator for "integrity and sustainable development (ESG)" carries a weighting of 5% to 15% (depending on the senior manager's position). The Company closely links the ESG work performance of senior Managerial Officers with their variable remuneration (year-end bonus, performance bonus and employees' remuneration) through performance management mechanism.

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III. Corporate governance

(I) Governance of the Board of Directors

In the most recent year (2025), the Board of Directors convened 8 meetings (A). The participation of the directors is enumerated below:

Title	Name	Actual attendance (B)	Proxy attendance	Actual attendance (%) (B/A)	Remark
Chairman	CAPITAL SECURITIES CORP. Representative: Chia, Chung-Tao	8	0	100%
Director	CAPITAL SECURITIES CORP. Representative: Lee, Wen-Chu	8	0	100%
Director	CAPITAL SECURITIES CORP. Representative: Liu, Ching-Tsun	7	1	88%
Director	Hung Yeh Investment Co., Ltd Representative: Lin, Tzu-Yi	7	0	100%	Appointed and took the office on February 25, 2025
Director	Hung Yeh Investment Co., Ltd Representative: Wang, Hui-Chin	1	0	100%	Left the office on February 25, 2025
Independent Director	Lin, Juh-Cheng	8	0	100%
Independent Director	Hsiao, Nai-Ching	8	0	100%
Independent Director	Wu, Yung- Sheng	8	0	100%

Other remarks:

I. For the operation of the Board of Directors in any of the following circumstances, please specify the date, term, the contents of the proposals, the opinions of all independent directors, and the process of the opinions proposed by the independent directors:

(I) Issues required under Article 14-3 of the Securities and Exchange Act: The Company has established an Audit Committee.

(II) Other than the aforementioned issues, the issue objected by an independent director or where an independent director maintains a qualified opinion with record or documented declaration in a decision resolved by the Board of Directors: None.

II. With respect to the avoidance of conflicting interest agendas, describe the names of directors, details of the relevant agendas, reasons for avoiding conflicting interest, and the voting decisions

Board of Directors	Proposal content/reasons for recusal due to conflicts of interest/resolution status
2025.1.14 8th meeting of the 10th Board of Director	• Proposal for ratification: Proposal for cash capital increase and employee share subscription of the Company in 2024
Chairman Chia, Chung-Tao and relevant supervisors present stated that he have an interest in the proposal and thus he recused from voting, and they did not participate in the discussion and voting. Director Lee, Wen-Chu acted as the chairman, and the remaining directors agreed that the proposal was approved as it was.
• Proposal for ratification: Proposal for the 2024 managerial level (inclusive) or above managers performance evaluation result.
Chairman Chia, Chung-Tao and relevant supervisors present stated that he have an

26 -

Board of Directors	Proposal content/reasons for recusal due to conflicts of interest/resolution status
	interest in the proposal and thus he recused from voting, and they did not participate in the discussion and voting. Director Lee, Wen-Chu acted as the chairman, and the remaining directors agreed that the proposal was approved as it was.
• Proposal for ratification: The proposal for 2024 year-end bonus distribution for supervisors at managerial-level (inclusive) and above.
Chairman Chia, Chung-Tao and relevant supervisors present stated that he have an interest in the proposal and thus he recused from voting, and they did not participate in the discussion and voting. Director Lee, Wen-Chu acted as the chairman, and the remaining directors agreed that the proposal was approved as it was.
2025.5.8
10th meeting of the 10th Board of Director	• Proposal for ratification: Proposal for 2024 employee compensation.
Chairman Chia, Chung-Tao and relevant supervisors present stated that he have an interest in the proposal and he recused from voting, and they did not participate in the discussion and voting. Director Lee, Wen-Chu acted as the chairman, and all the remaining directors agreed that the proposal was approved.
• Proposal for ratification: Proposal for 2024 director's remuneration distribution.
Non-independent directors stated that they had an interest in the proposal and recused from voting, and did not participate in the discussion and voting. Independent director Lin, Juh-Cheng acted as the deputy chairperson, and the proposal for distribution of remuneration to non-independent directors was approved by all the independent directors present.
Independent directors stated that they had an interest in the proposal and recused from voting, and did not participate in the discussion and voting. All other directors present approved the proposal for distribution of remuneration to independent directors.
2025.8.21
12th meeting of the 10th Board of Director	• Proposal for ratification: Proposal for the 1st half of 2025 performance evaluation results for supervisors at managerial level (inclusive) and above
Chairman Chia, Chung-Tao and relevant supervisors present stated that he have an interest in the proposal and he recused from voting, and they did not participate in the discussion and voting. Director Lee, Wen-Chu acted as the chairman, and all the remaining directors agreed that the proposal was approved.
• Proposal for ratification: Proposal for the Company to pay festival bonus to the supervisors above manager level (inclusive) and bonus to Proprietary Trading Department in the first half of 2025.
Chairman Chia, Chung-Tao and relevant supervisors present stated that he have an interest in the proposal and he recused from voting, and they did not participate in the discussion and voting. Director Lee, Wen-Chu acted as the chairman, and all the remaining directors agreed that the proposal was approved.
2025.9.17
13th meeting of the 10th Board of Director	• Proposal for ratification: Proposal for the establishment of a Chengdu Branch of the subsidiary “Capital Futures Technology (Shanghai) Co., Ltd.”, and the reassignment of its Chairman, Vice Chairman, Directors, Supervisor, and President.
Chairman Chia, Chung-Tao and relevant supervisors present stated that he have an interest in the proposal and he recused from voting, and they did not participate in the discussion and voting. Director Lee, Wen-Chu acted as the chairman, and all the remaining directors agreed that the proposal was approved.

III. Exchange-Listed and OTC-Listed Companies shall disclose the evaluation cycle and period, evaluation scope, method and evaluation content of the Board of Directors’ self (or peers) evaluation

The Board of Directors of the Company has established the “Performance Evaluation Guideline for the Board of Directors and Functional Committees”. The scope of evaluation

includes the whole Board of Directors, each director and functional committees. The evaluation methods include internal self-evaluation of the Board of Directors and functional committees, self-evaluation by directors or other appropriate methods of performance evaluation, and the evaluation also takes into account directors' attendance at board meetings and their participation in corporate governance-related training and education, serving as a reference for the Board of Directors' annual regular performance evaluation.

The internal performance evaluation results of the Board of Directors, individual directors, and the Audit Committee, Remuneration Committee, and Ethics and Sustainability Committee for 2025 were reported to the Board of Directors at its 16th meeting of the 10th term held on January 16, 2026.

Evaluation Cycle	Evaluation performed once a year
Evaluation Period	January 1, 2025 to December 31, 2025
Evaluation Scope	Whole board of directors, each director and functional committees
Evaluation Method	Board of directors’ internal self-evaluation, directors’ self-evaluation and members of functional committees’ self-evaluation
Evaluation Content	(I) Board of directors’ evaluation
	Evaluation Index	Evaluation Item	Evaluation Results	Average Score
	A. Level of participation in the Company’s operations	12	5	5
	B. Improvement of board's/functional committee’s decision quality	12	5
	C. Board/functional committee composition	7	5
	D. Election and ongoing education of directors	4	5
	E. Internal Control	6	5
	(II) Directors’ evaluation
	Evaluation Index	Evaluation Item	Evaluation Results	Average Score
	A. Director's awareness toward the Company’s goals and missions	3	4.95	4.96
	B. Director’s awareness to duties	3	5
	C. Level of participation in the Company’s operations	8	4.95
	D. Management and communication of internal relations	3	5
	E. Professionalism and ongoing education of directors	3	4.86
	F. Internal Control	3	5
	(III) Audit Committee’s evaluation
	Evaluation Index	Evaluation Item	Evaluation Results	Average Score
	A. Level of participation in the Company’s operations	4	5	5
B. Awareness of the duty	5	5

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	(IV)	C. Improvement on the quality of Audit Committee’s decision	7	5
		D. Audit Committee’s composition and structure	3	5
		E. Internal Control	3	5
		Remuneration Committee’s evaluation
		Evaluation Index	Evaluation Item	Evaluation Results	Average Score
		A. Level of participation in the Company’s operations	4	5	5
		B. Awareness of the duty	4	5
		C. Improvement on the quality of Remuneration Committee’s decision	7	5
		D. Remuneration Committee’s composition and structure	3	5
		Ethics and Sustainability Committee Performance Evaluation
		Evaluation Index	Evaluation Item	Evaluation Results	Average Score
		A. Level of participation in the Company’s operations	4	5	5
		B. Awareness of Duties of Ethics and Sustainability Committee	3	5
C. Improvement on the quality of Ethics and Sustainability Committee’s decision	7	5
D. Ethics and Sustainability Committee’s composition and structure	3	5
	Performance evaluation results: (I) The average score of the board’s evaluation was 5, which was “excellent” (II) The average score of each directors’ evaluation was 4.96, which was “excellent” (III) The average score of Audit Committee’s evaluation was 5, which was “excellent” (IV) The average score of Remuneration Committee’s evaluation was 5, which was “excellent” (V) The average score of Ethics and Sustainability Committee’s evaluation was 5, which was “excellent”

IV. The objective of the current year and the most recent year to strengthen the board’s functions (such as the establishment of an audit committee, improve information transparency, etc.) and implementation evaluation.

In 2025, the Company entrusted Taipei Foundation of Finance, an external professional organization, to make an external evaluation on the Board of Directors’ performance. Taipei Foundation of Finance and its evaluators have no business dealings with the Company and they are independent. The relevant matters are explained as follows:

Scope of Evaluation: Primarily the Company’s Board of Directors and its functional committees

Evaluation Period: January 1, 2023 to April 2, 2025.

Evaluation Team: Evaluation Committee Members: Tsai, Shih-Chuan (Convener) and Tsai, Wei-Che (Member)

Working Group: Fang, Hsiu-Chung (Consultant) and Cheng, Yu-Chung (Director)

Evaluation Item: A total of 50 indicators across seven dimensions, including protecting shareholders' equity, strengthening the Board's structure and operation, participation in the Company's operations, enhancing the quality of Board decision-making, improving information transparency, internal control, and promoting sustainability, with other appropriate evaluation considerations incorporated as applicable.

By using the Board meeting minutes, current internal policies, other supporting documents, public information and the self-completed Board performance evaluation indicator checklist provided by the Company, it conducted an on-site evaluation interview on May 9, 2025, interviewing the Company's Chairman, Independent Directors (conveners of each functional committee), President, Corporate Governance Officer and Chief Audit Executive, and issued a comprehensive Board performance evaluation report on May 21, 2025. The Company reported the evaluation results at the 12th meeting of the 10th Board of Directors on August 21, 2025.

(II) The state of operations of the Audit Committee or the state of participation in board meetings by the supervisors: Number of meetings; rate of attendance (or of attendance as a non-voting participant) of each independent director or supervisor; and any other matters that require reporting

The Audit Committee of the Company is composed of three independent directors, and the qualifications of the three members are all in compliance with the regulations of the competent authorities. The operation and objective of the audit committee are based on the fair representation of the Company's financial statements, the selection (dismissal), independence and performance of certified accountants, the effective implementation of the Company's internal control, compliance with relevant laws and regulations, and the management and control of the Company's existing or potential risks.

The official power of the audit committee: formulate or amend the internal control system, assess the effectiveness of the internal control system, formulate or amend company regulations such as the acquisition or disposal of assets, a matter bearing on the personal interest of a director, critical asset or derivative product trading, critical capital lending, endorsement, or guarantee, offering, issuance or private placement of equity securities, appointment, dismissal or remuneration of certified accountants, appointment and dismissal of a chief financial officer, chief accounting officer or chief internal auditor, annual and interim financial reports, and other major matters stipulated by the Company or the competent authority.

In the most recent year (2025), the Company's Audit Committee convened a total of Six meetings (A) where the facts of participation by the independent directors are enumerated below:

Title	Name	Actual attendance (B)	Proxy attendance	Actual attendance (%) (B/A)	Remark
Independent Director	Lin, Juh-Cheng	6	0	100%	Convener
Independent Director	Hsiao, Nai-Ching	6	0	100%

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Independent Director	Wu, Yung-Sheng	6	0	100%

Other remarks:

I. Where any one among those enumerated below exists as the performance by the Audit Committee, the convention date, term, contents of agenda, outcome of the decision resolved in the Audit Committee as well as the Company’s opinions toward the Audit Committee’s opinions should be expressly remarked.

(I) Issues required under Article 14-5 of the Securities and Exchange Act

Date/time	Discussion/Resolution	The Company’s response to the opinions of Audit Committee
2025.3.5
4th meeting of the 4th Audit Committee	• Proposal for ratification: 2024 Anti-Money Laundering and Counter-Terrorism Financing Internal Control System Declaration
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for 2024 Design and Implementation Declaration of Internal Control System
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Amendment to the Company’s Internal Control System
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for 2024 Annual Business Report and Consolidation and Individual Financial Report
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for 2024 Profit Distribution
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: The Company’s 2025 certified accountant independence assessment
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: 2025 Annual Quotation of Accountants’ Auditing Fees
Resolution: Approved with the entire committee members present voting in favor	2025.3.6
It was approved by all the directors attended the 9th meeting of the 10th Board of Directors.
2025.5.6
5th meeting of the 4th Audit Committee	• Proposal for ratification: Consolidated financial statements of the 1st quarter of 2025
Resolution: Approved with the entire committee members present voting in favor	2025.5.8
It was approved by all the directors attended the 10th meeting of the 10th Board of Directors.
2025.8.19
6th meeting of the 4th Audit Committee	• Proposal for ratification: Amendment to the Company’s Internal Control System
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Revision to the Implementation Guidelines for the Whistle-blowing System.
Resolution: Approved with the entire committee members present voting in favor	2025.8.21
It was approved by all the directors attended the 12th meeting of the 10th Board of Directors.

Date/time	Discussion/Resolution	The Company’s response to the opinions of Audit Committee
	• Proposal for ratification: Individual and Consolidated Financial Report for the 1st half of 2025 (January 1 to June 30)
Resolution: Approved with the entire committee members present voting in favor
2025.9.17
7th meeting of the 4th Audit Committee	• Proposal for ratification: The proposed change of the subsidiary “Capital Futures Technology (Shanghai) Co., Ltd.” name to “QIT Technology Co., Ltd.” and the amendment of its “Articles of Association”
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for the establishment of a Chengdu Branch of the subsidiary “Capital Futures Technology (Shanghai) Co., Ltd.”, and the reassignment of its Chairman, Vice Chairman, Directors, Supervisor, and President
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: The liquidation and dissolution of the subsidiary “True Partner Capital Technology (Chengdu) Co., Ltd.”
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for amendment to the Procedures for Acquisition or Disposal of Assets.
Resolution: Approved with the entire committee members present voting in favor	2025.9.17
It was approved by all the directors attended the 13th meeting of the 10th Board of Directors.
2025.11.5
8th meeting of the 4th Audit Committee	• Proposal for ratification: Risk tolerance and exposure limits for leveraged margin business of the Financial Innovation Department
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Application for credit line by the subsidiary CSC Futures (HK) Ltd. from Taishin International Bank Co., Ltd. and issuance of “Letter of Comfort” by the Company
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Consolidated financial statements of the 3rd quarter of 2025
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Amendment to the Company’s Internal Control System
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: The Company's audit plan for 2026
Resolution: Approved with the entire committee members present voting in favor	2025.11.6
It was approved by all the directors attended the 14th meeting of the 10th Board of Directors.
2025.11.12
9th meeting of the 4th Audit Committee	• Proposal for ratification: The Company plans to increase capital investment in its subsidiary CSC Futures (HK) Ltd. by HKD 120,000,000
Resolution: Approved with the entire committee members present voting in favor	2025.11.12
It was approved by all the directors attended the 15th meeting of the 10th Board of Directors.

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(II) Except the aforementioned issue, other issue not yet resolved in the Audit Committee but has been duly resolved by two-thirds majority of the total number of director seats: None.

II. With respect to the avoidance of conflicting interest agendas, describe the names of independent directors, details of the relevant agendas, reasons for avoiding conflicting interest, and the voting decisions: None.

III. Facts of communications by and between independent directors and Internal Audit Head as well as Certified Public Accountant(s) (should include issues regarding the Company's finance, financial conditions, facts in business operation and such key issues, the method of communications and the outcome thereof):

(I) Communication methods between independent directors and the internal audit head:

After the internal audit report and follow-up report are presented, an internal audit summary report of the implementation of the audit items for the previous month shall be sent to the independent directors for review.
The Company holds a symposium for independent communication between independent directors and internal audit head at least once every year. General directors and management are not present at such symposium.
The internal audit head regularly attends meetings of the Audit Committee and the Board of Directors to report on the implementation status of audit matters and the improvement of deficiencies.
If the independent directors have questions or suggestions on the internal audit report or other audit matters, they will directly contact the internal audit head, and communicate or exchange opinions in person at the audit committee and board meetings; therefore, the communication channels are unobstructed.
Dates and communication for this fiscal year:

Date	Meeting	Attendee	Agenda	Recommendations of independent directors/implementation
2025.11.12	Forum	Independent Directors: Lin, Juh-Cheng; Hsiao, Nai-Ching; Wu, Yung-Sheng Auditing Officer: Lian, Jing-Lian	• Annual average frequency of external audits
• Communication on audit matters and presentation of audit report, maintaining adequate staffing in the Audit Office
• Performance evaluation of the Auditing Officer	• Recommendation to assess the overall reasonableness of staffing levels and compensation
• Implemented in accordance with the resolution of the meeting
Date	Meeting	Agenda	Implementation status	Recommendations of independent directors
---	---	---	---	---
2025.3.5	Audit Committee	• Internal audit report
• Proposal for 2024 Design and Implementation Declaration of Internal Control System
• Amendment to the Company's Internal Control System	The proposal was approved by all the members and submitted to the Board of Directors	No objections
2025.3.6	Board of Directors		The proposal was approved by all present directors	No objections

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Date	Meeting	Agenda	Implementation status	Recommendations of independent directors
2025.5.6	Audit Committee	• Internal audit report	The proposal was approved by all the members and submitted to the Board of Directors	No objections
2025.5.8	Board of Directors		The proposal was approved by all present directors	No objections
2025.8.19	Audit Committee	• Internal audit report
• Amendment to the Company’s Internal Control System	The proposal was approved by all the members and submitted to the Board of Directors	No objections
2025.8.21	Board of Directors		The proposal was approved by all present directors	No objections
2025.11.5	Audit Committee	• Internal audit report
• Amendment to the Company’s Internal Control System
• 2026 Audit Plan	The proposal was approved by all the members and submitted to the Board of Directors	No objections
2025.11.6	Board of Directors		The proposal was approved by all present directors	No objections

(II) Communication method between the independent directors and CPAs:

The certified accountants of the Company regularly describe the process and scope of auditing the Company’s financial statements to the audit committee and board of director every six months, and fully discuss with the independent directors.
The Company arranges a symposium for independent directors and certified accountants (at least once) every year to make communication on and verify work plan and key matters, etc. General directors and management are not present at such symposium.
If any independent director has any questions or suggestions about the contents of financial statements or other financial matters, it may make communication or discussion or exchange opinions face to face at the symposium.
Dates and communication for this fiscal year:

Date	Meeting	Attendee
2025.3.5	Forum	Independent Directors:
Lin, Juh-Cheng; Hsiao, Nai-Ching; Wu, Yung-Sheng
CPA Wu, Cheng-Yen from KPMG
CPA Chen, Yi-Jen	• To share matters concerning the supervision of overseas subsidiaries, anti-money laundering and relevant reminders.
• Sharing of recent updates of	• CPA explained one by one in details.
• Opinions of independent directors

Date	Meeting	Attendee	Agenda	Opinions of independent directors/implementation
			important laws and regulations
2025.3.5	Audit Committee	Head of accounting Lin, Li-Chuan CPA Wu, Cheng-Yen from KPMG CPA Chen, Yi-Jen	• The Company’s 2024 business report and consolidated and individual financial statements	• Accountant’s statement: an unqualified opinion will be issued after the review
• The proposal was approved by all the members and submitted to the Board of Directors
2025.3.6	Board of Directors			• The proposal was approved by all present directors
2025.8.19	Audit Committee	Head of accounting Lin, Li-Chuan CPA Wu, Cheng-Yen from KPMG CPA Chen, Yi-Jen	• Individual and Consolidated Financial Report for the 1st half of 2025 (January 1 to June 30)	• Accountant’s statement: an unqualified opinion will be issued after the review
• The proposal was approved by all the members and submitted to the Board of Directors
2025.8.21	Board of Directors			• The proposal was approved by all present directors

(III) Composition and performance of Remuneration Committee

The members of the Company’s Remuneration Committee shall be appointed by resolution of the Board of Directors. The number of members shall not be less than three, and a majority of the members shall be independent directors. The current committee is composed of three independent directors. The Committee member shall exercise the care of a good administrator in faithfully participants the conclusion the official powers listed below, and shall submit its recommendations for deliberation by the Board of Directors:

Prescribe and periodically review the performance evaluation and remuneration policy, system, standards, and structure for directors and managerial officers.
Periodically evaluate and prescribe the remuneration of directors and managerial officers.

The Remuneration Committee shall perform the above mentioned duties based on the following principles:

With respect to the performance assessment and remuneration of directors and managerial officers of the company, it shall refer to the typical pay levels adopted by peer companies, and take into consideration the reasonableness of the correlation between remuneration and individual performance, the company’s business performance, and future risk exposure.
No suggestions are made to guide directors and managerial officers to engage in acts that may exceed the Company’s risk appetite to pursue own salary and

remuneration.

The specificity of the industry and the nature of the Company's business shall be considered when determining the proportion of profit sharing for short-term performance and the changes in the payment time of part of the salary and remuneration of directors and executives.

Information of the Remuneration Committee member: Tenure of Committee members in the current session: May 30, 2024 - May 29, 2027

March 31, 2026

Title	Name	Professional qualification and experience/Compliance of independence	Number of other public companies where the members are also the members of the remuneration committee of these companies
Independent Director	Lin, Juh-Cheng	Please refer to pages 9-14 for the disclosure of professional qualification of the directors and independence of directors	2
Independent Director	Hsiao, Nai-Ching		0
Independent Director	Wu, Yung-Sheng		2

In 2025, the Remuneration Committee convened 8 meetings (A). The qualifications and participation facts of the Committee members are enumerated below:

Title	Name	Actual attendance (B)	Actual attendance (%) (B/A)	Remark
Independent Director	Lin, Juh-Cheng	8	100%	Convener
Independent Director	Hsiao, Nai-Ching	8	100%
Independent Director	Wu, Yung-Sheng	8	100%

Important matters of the Remuneration Committee in the most recent year are as follows:

Date/time	Discussion/Resolution	Implementation
2025.1.14 6th meeting of the 6th Remuneration Committee	Proposal for ratification: Matters regarding cash capital increase and employee share subscription in 2024 Resolution: Approved with the entire committee members present voting in favor Proposal for ratification: 2024 annual performance evaluation result for supervisors at managerial level (inclusive) and above Resolution: Approved with the entire committee members present voting in favor Proposal for ratification: The proposal for 2024 year-end bonus distribution for supervisors at managerial-level (inclusive) and above Resolution: Approved with the entire committee members present voting in favor	2025.1.14 It was approved by all the directors attended the 8th meeting of the 10th Board of Directors.

Date/time	Discussion/Resolution	Implementation
2025.1.22
7th meeting of the
6th Remuneration
Committee	• Proposal for ratification: Proposal for the Company to pay festival bonus to the supervisors above manager level (inclusive) and bonus to Futures Proprietary Trading Department in the second half of 2024
Resolution: Approved with the entire committee members present voting in favor	2025.3.6
It was approved by all the directors attended the 9th meeting of the 10th Board of Directors.
2025.3.5
8th meeting of the
6th Remuneration
Committee	• Proposal for ratification: Proposal for employment of the head of the Securities Channel Division, Omni-Channel Department
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for official appointment of the supervisor of the Sales Division IV of the Taichung Branch
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for promotion of the supervisors at manager level (inclusive) or above in 2025
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for report on 2024 employee and director remuneration distribution
Resolution: Approved with the entire committee members present voting in favor	2025.3.6
It was approved by all the directors attended the 9th meeting of the 10th Board of Directors.
2025.5.6
9th meeting of the
6th Remuneration
Committee	• Proposal for ratification: proposal for the extension of the period for implementation of the Guideline for Managed Futures Department Bonus
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Newly adopted “Guidelines for Sales, Referral, and Bonuses for Financial Innovation Business”
Resolution: It was resolved that the Guidelines be reviewed and revised after one year of trial implementation. The proposal was approved with the entire committee members present voting in favor
• Proposal for ratification: Amendment of “Guideline for festival bonuses distribution”
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Promotion and salary adjustment of the head of the Securities Investment Consulting Department
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for adjustment to the remuneration of the supervisors at manager level (inclusive) or above in 2025
Resolution: Approved with the entire committee	2025.5.8
It was approved by all the directors attended the 10th meeting of the 10th Board of Directors.

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Date/time	Discussion/Resolution	Implementation
	members present voting in favor
• Proposal for ratification: proposal for 2024 employee compensation
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for 2024 director’s remuneration distribution
Resolution: Approved with the entire committee members present voting in favor
2025.5.29
10th meeting of the 6th Remuneration Committee	• Proposal for Ratification: Proposal for salary adjustment for Vice President Cheng Shin-Pin, Head of the Proprietary Trading Department
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for promotion and salary adjustment for department heads at manager level and above in the Leveraged Trading Department
Resolution: Approved with the entire committee members present voting in favor	2025.5.29
It was approved by all the directors attended the 11th meeting of the 10th Board of Directors.
2025.8.19
11th meeting of the 6th Remuneration Committee	• Proposal for ratification: Proposal for official appointment of Wei Chu-Wei, First-Level Business Specialist of Business Department III of the subsidiary in Taichung, as Department Head
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for promotion of the supervisor of Managed Futures Department and adjustment to his/her salary
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for the 1st half of 2025 performance evaluation results for supervisors at managerial level (inclusive) and above
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for the Company to pay festival bonus to the supervisors above manager level (inclusive) and bonus to Futures Proprietary Trading Department in the first half of 2025.
Resolution: Approved with the entire committee members present voting in favor	2025.8.21
It was approved by all the directors attended the 12th meeting of the 10th Board of Directors.
2025.9.17
12th meeting of the 6th Remuneration Committee	• Proposal for ratification: proposal for salary adjustment for Omni-Channel Department's supervisors at managerial-level and above
Resolution: Approved with the entire committee members present voting in favor	2025.9.17
It was approved by all the directors attended the 13th meeting of the 10th Board of Directors.

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Date/time	Discussion/Resolution	Implementation
2025.11.5
13th meeting of the
6th Remuneration
Committee	• Proposal for ratification: Proposal for closing of the internal incentive activities of the Sales Department and Taichung Branch
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for exemption of calculating the lost amount of the bonus calculation basis for Proprietary Trading Department for the year of 2024 and January to March 2025
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Amendment to the Guideline for Employee Performance Evaluation.
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: proposal for 2025 year-end bonus based on two-month basic salary
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Proposal for salary adjustment for the vice chairman of the subsidiary “Capital Futures Technology (Shanghai) Co., Ltd.”
Resolution: Approved with the entire committee members present voting in favor	2025.11.6
It was approved by all the directors attended the 14th meeting of the 10th Board of Directors.

Other remarks:

I. Where the board of directors does not adopt or amend the proposal(s) posed by the Remuneration Committee: The Company shall expressly elaborate on the date, term while the board of directors meeting was convened, contents of the issues, outcome of decisions resolved in the board of directors and the Company’s response to the opinions posed by the Remuneration Committee (For instance, if the salary pay resolved by the board of directors is higher than that proposed by the Remuneration Committee, the Company should elaborate on the fact of differential gap and the cause thereof): None.

II. Where a decision resolved in the Remuneration Committee is found in contravention of rules or in qualified opinion as verified with records or documented declaration, the Company shall expressly elaborate on the date, terms of the meeting convened by the Remuneration Committee, contents of agenda, opinions of all members and acts taken in response to such opinions: None.

(IV) Composition and performance of Ethics and Sustainability Committee

The Company’s “Ethics and Sustainability Committee” is composed of three independent directors. The Committee shall meet at least once a year and is responsible for formulating and supervising the implementation of integrity management policies and prevention programs, as well as promoting and overseeing matters related to sustainable development and the fair treatment of customers. The Committee shall also report compliance status and resolutions to the Board of Directors. All committee members participate in continuing education courses on corporate integrity management and sustainable development each year and possess the professional knowledge and competence necessary for corporate sustainability. Responsibilities include:

Assisting in incorporating ethics and moral values into the Company's business strategy and adopting appropriate prevention measures against corruption and malfeasance to ensure ethical management in compliance with the requirements of laws and regulations.
Analyzing and assessing the risks of unethical conduct within the business scope on a regular basis and accordingly adopting programs to prevent unethical conduct and setting out in each program the standard operating procedures and conduct guidelines with respect to the Company's operations and business.
Assisting in integrating the values of sustainable development and treating-customer-fairly into the Company's corporate culture.
Reviewing the Company's policies and objectives on sustainable development and treating-customer-fairly, and monitoring their implementation and effectiveness.

Ethics and Sustainability Committee held 4 meetings (A) in the most recent year (2025), with the attendance as follows:

Title	Name	Actual attendance (B)	Actual attendance (%) (B/A)	Remark
Independent Director	Lin, Juh-Cheng	4	100%	Convener
Independent Director	Hsiao, Nai-Ching	4	100%
Independent Director	Wu, Yung-Sheng	4	100%

Important matters of the Ethics and Sustainability Committee in the most recent year are as follows:

Date/time	Discussion/Resolution	Implementation
2025.3.5
3rd meeting of the 3rd Ethics and Sustainability Committee	• Proposal for ratification: Amendment to the Procedures for Handling Material Inside Information
Resolution: Approved with the entire committee members present voting in favor	2025.3.6
It was approved by all the directors attended the 9th meeting of the 10th Board of Directors.
2025.8.19
5th meeting of the 3rd Ethics and Sustainability Committee	• Proposal for ratification: The 2024 Sustainability Report of the Company
Resolution: Approved with the entire committee members present voting in favor	2025.8.21
It was approved by all the directors attended the 12th meeting of the 10th Board of Directors.
2025.11.5
6th meeting of the 3rd Ethics and Sustainability Committee	• Proposal for ratification: Proposal for 2026 setting customer fair treatment KPI.
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Amendment to the Guidelines for Dealing with the Disputes from Consumers
Resolution: Approved with the entire committee members present voting in favor
• Proposal for ratification: Amendment to the “Sustainable Development Best Practice Principles”
Resolution: Approved with the entire committee members present voting in favor	2025.11.6
It was approved by all the directors attended the 14th meeting of the 10th Board of Directors.

(V) Performance in corporate governance and the differential gap between corporate governance and Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the cause thereof

Evaluation Item	Actual governance			Deviation and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
I. Will the Company based on the "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" set up and disclose the Company's corporate governance best-practice principles?	V		The Company has formulated corporate governance best-practice principles (amendment to which was approved at the 6th meeting of the 10th Board of Directors on November 7, 2024), as approved by the Board of Directors, in accordance with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the Corporate Governance Best-Practice Principles for Futures Commission Merchants, and the Company disclosed the corporate governance best-practice principles on its website and MOPS.	No major discrepancy
II. Shareholding structure and shareholders' equity
(I) Will the Company have the internal procedures regulated to handle shareholders' proposals, doubts, disputes, and litigation matters; also, have the procedures implemented accordingly?	V		(I) The Company's "Corporate Governance Best-Practice Principles" stipulates that a designated person is responsible for the collection and disclosure of corporate information, and a spokesperson system and a procedure guideline for managing shareholders' suggestions, doubts, disputes and litigation matters has been established to ensure proper implementation. In addition to the Investor Contact Window on the Company's website, a shareholder services agent is mandated to manage the shareholders' questions and suggestions.	No major discrepancy
(II) Will the Company possess the list of the Company's major shareholders and the list of the ultimate controllers of the major shareholders?	V		(II) The Company governs the shareholding and the list of shareholders according to the shareholder register and the monthly shareholding declaration and disclosed in the annual report in accordance with the regulations.	No major discrepancy
(III) Will the Company establish and implement the risk control and firewall mechanisms with the related parties?	V		(III) For the Company's financial and business dealings or transactions with its related parties and shareholders, the Company has formulated the Rules for Making Financial and Business Trading between Related Parties and between the Enterprises in the Group, with the contents including the procedures for management on purchase and sale, acquisition or disposal of assets, lending of money, endorsement, guarantee and other transactions, and relevant major transactions should be submitted to the Board of Directors for resolution and approval and submitted to the Shareholders' Meeting for approval or reporting.	No major discrepancy

Evaluation Item	Actual governance			Deviation and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(IV) Will the Company set up internal norms to prohibit insiders from utilizing the undisclosed information to trade securities?	V		(IV) The Company has established “Administrative Measures for Opening Futures Trading Account for Insiders” and “Measures for Insider Account Opening and Securities Trading Management and Credit Trading Account Opening and Trading” to regulate insider trading and other transactions. Prohibit insiders from utilizing the undisclosed information to trade securities and formulate “Procedures for Handling Material Inside Information”.	No major discrepancy
III. The constitution and obligations of the Board of Directors
(I) Does the board of directors formulate and implement diversity policies, specific management objectives?	V		(I) In accordance with the reference example of the “XXX Co., Ltd. Procedures for Election of Directors” of TWSE, the Company shall consider the overall configuration of the Board of Directors for the selection and appointment of directors of the Company. The composition of the board of directors shall be determined by taking diversity into consideration and formulating an appropriate policy on diversity based on the company’s business operations, operating dynamics, and development needs. Please refer to pages 9-14 of this annual report.	No major discrepancy
(II) Will the Company, in addition to setting the Remuneration Committee and Audit Committee lawfully, have other functional committee set up voluntarily?	V		(II) In order to ensure implementation of ethical management, sustainable development and treating-customer-fairly principles, the Company has voluntarily established an Ethics and Sustainability Committee, composed of all three Independent Directors, which is responsible for formulating and supervising the implementation of ethical management policies and preventive measures, and promoting and supervising sustainable development and treating-customer-fairly-related matters, and reporting to the Board of Directors regularly (at least once a year). Please refer to pages 39-40 of this annual report.	No major discrepancy
(III) Does the company establish a method to evaluate board performance and evaluate board performance every year? Are the performance evaluation results reported to the board and used as a reference for the remuneration and nomination for re-election of individual directors?	V		(III) The Board of Directors of the Company has established the “Performance Evaluation Guideline for the Board of Directors and Functional Committees”. The scope of evaluation includes the whole Board of Directors, each director and functional committees. The evaluation methods include internal self-evaluation of the Board of Directors and functional committees, self-evaluation by directors or other appropriate methods of performance evaluation. The evaluation shall be conducted by an external assessment institution or a team of external experts and scholars at least once every three years. In 2025, the Company entrusted Taipei Foundation of Finance, an external professional	No major discrepancy

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Evaluation Item	Actual governance	Deviation and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description
(IV) Will the Company have the independence of the public accountant evaluated regularly?	V
(IV) The Company’s Board of Directors evaluates the independence and competence of certified accountants by referring to Audit Quality Indicators (AQIs) (at least once) every year to ensure honest and ethical accounting, auditing and financial reporting and maintain effective internal control system, especially risk management, financial and operating control and compliance with relevant regulations and standards. The Company appointed Wu, Cheng-Yen and Chen, Yi-Jen, the CPAs from KPMG to serve as certified accountants in 2025. As evaluated, they meet the independence evaluation standards, and they issued the statement of accountants’ independence. It was reviewed and approved at the 4th meeting of the 4th Audit Committee on March 5, 2025 and the 9th meeting of the 10th Board of Directors on March 6, 2025. Subject to the five major items and 13 indicators specified in AQIs, KPMG and its audit team have an audit quality comparable to the average level in the industry.
Item	Whether there are any of the following circumstances
Yes	None
1. The CPA is currently employed by the Company to perform routine work for which he or she receives a fixed salary, or serves as a director.		V
2. The CPA has previously served the Company as a director, managerial officer, or employee with material influence over

Actual governance
Yes	No	Summary description
		attestation, and has been separated from the position for less than two years.
		3. The CPA is a spouse, lineal relative, direct relative by marriage, or a collateral relative within the second degree of kinship of any responsible person or managerial officer of the Company.	V
		4. The CPA, or the spouse or a minor child, has invested in the Company, or a relationship of benefit-sharing.	V
		5. The CPA, or the spouse or a minor child, has lent or borrowed funds to or from the Company.	V
		6. Perform management consulting or other non-attestation services sufficiently to affect the independence.	V
		7. Not complying with the regulations by the competent authority on business matters regarding the rotation of CPA, handling accounting affairs on behalf of others, or other regulations that can affect independence.	V
		8. Has been continuously appointed attestation services for seven years, or has been subject to disciplinary action or damage to the independence.	V
		9. Has not obtained independent statements from the CPA.	V
		10. The quality and timeliness of services such as auditing and taxation did not meet the demand.	V
		11. The Company has been subject to litigation or rectification by the competent authority due to its financial report.	V
		12. The scale and reputation of the accounting firm have been seriously damaged.	V
		13. Accountants interact poorly with management, governance units, and the internal audit head.	V

44 -

Evaluation Item	Actual governance			Deviation and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
IV. Does a public company equip an appropriate number of eligible governance personnel and assign the governance officer to take charge of company’s governance affairs (including, without limitation, providing directors and supervisors with the data required for business operations, assistance for the legal compliance of directors and supervisors, handling affairs related to holding a board meeting or a general meeting of shareholders and producing minutes for board meetings and general meetings of shareholders)?	V		The Company, as resolved by its Board of Directors, causes its Senior Executive Vice President, Chen, Chi-Hao, serving as a “Corporate Governance Officer”. He has the qualification to practice as a lawyer and has been engaged in legal compliance and legal related affairs in financial related institutions and public companies as a supervisor for more than three years. His professional duties include dealing with the matters related to the meetings of the Board of Directors, Shareholders’ Meeting and functional committees in accordance with laws, making minutes for the meetings of the Board of Directors, Shareholders’ Meeting and functional committees, assisting directors in their appointment and continuing education, providing directors with information needed to execute their business, assisting directors in complying with laws and regulations, and other matters specified in laws and regulations, Articles of Association or contracts. Please refer to pages 26-40 of this annual report for the operation of the Board of Directors and Functional Committees in 2025.	No major discrepancy
V. Has the Company established a communication channel with the stakeholders (including but not limited to the shareholders, employees customers, and suppliers), set up a stakeholder section on the Company’s website, and responded appropriately to the important corporate social responsibilities concerned by the stakeholders?	V		The Company has a spokesperson and an Investor Relation and Customer Service Center, the contact window and information of which are disclosed on the Company’s website, for stakeholders to provide various opinions. In addition, the Company has a stakeholder section on its website to maintain good, smooth and diversified communication channels, and to formulate major management policies and implementation plans for major issues that stakeholders concern about. The Company has classified stakeholders involved in its operations into eight categories: customers, shareholders/investors, employees, government agencies, communities/groups, suppliers, non-profit organizations, and others (industry peers). With reference to the GRI Standards and material topics of domestic and international benchmark enterprises as well as industry peers, the Company has identified 23 sustainability issues under three major aspects relevant to its operations: environment, society and corporate governance (ESG). Based on questionnaire feedback from stakeholders, issues of concern to them have been identified as a reference for the subsequent management policies and implementation	No major discrepancy

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Evaluation Item	Actual governance			Deviation and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			plans.
The status of communication with various stakeholders is regularly reported to the Board of Directors at least once a year. The stakeholder communication status for 2024 was reported to the Board of Directors on January 14, 2025, and that for 2025 was reported to the Board of Directors on January 16, 2026.
VI. Has the Company commissioned a professional stock service agent to handle shareholders affairs?	V		The Company has commissioned the Registrar Agency Department of Capital Securities Corp. to handle shareholders affairs.	No major discrepancy
VII. Disclosure of information
(I) Does the Company have a website setup and the financial business and corporate governance information disclosed?
(II) Has the Company adopted other information disclosure methods (such as, establishing an English website, designating a responsible person for collecting and disclosing information of the Company, substantiating the spokesman system, placing the juristic person seminar program on the Company’s website, etc.)?
(III) Does the company announce and report its financial statements within two months after the end of a fiscal year, and publish and declare in advance the financial statements of Q1, Q2 and Q3 as well as status of	V	(I) The Company’s website discloses relevant financial business and corporate governance information and is regularly updated for investors to view.
(II) The Company discloses relevant information to the MOPS of the competent authority in accordance with regulations.
The Company has set up an English website. https://www.capitalfutures.com.tw/en-us/about/business
Operations such as company information collection and disclosure are all performed by relevant departments.
There are spokespersons and investor relations, and its contact information are disclosed on the company’s website to provide investors a convenient communication channel.
The information and video of the Company’s juristic person seminar program are disclosed on the Company’s website or MOPS.
(III) For the audit and review of the financial report of the Company, before appointing an accountant to issue an audit opinion to the merged company, it is necessary to obtain sufficient and appropriate audit proof for all the entities of the merged company (including all domestic and foreign subsidiaries); however, obtaining sufficient and appropriate audit evidence requires time and it is difficult for the Company to announce and report the annual financial report within two months after the end of the fiscal year. The Company is still discussing the audit schedule with the	No major discrepancy
No major discrepancy
No major discrepancy

46 -

Evaluation Item	Actual governance
	Yes	No	Summary description
monthly operations?			accountant to comply with corporate governance.
VIII. Are there any other important information (including but not limited to the interests of employees, employee care, investor relations, supplier relations, the rights of stakeholders, the advanced study of directors and supervisors, the implementation of risk management policies and risk measurement standards, the execution of customer policy, the purchase of liability insurance for the Company’s directors and supervisors) that are helpful in understanding the corporate governance operation of the Company?	V		1. Employee rights and interests: The Company has established various personnel management regulations, as well as “Measures of Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace” and “Guidelines of Using Employee Opinion Boxes”. All workers can put forward opinions on business content, operating procedures, administrative measures, rules and regulations, and opinions regarding to helping business operations, or infringing or affecting personal rights and interests.
2. Employee care: Engaging physicians and nursing personnel to the Company to provide health consulting services and the correct concept of the precaution against diseases and the advice on treatment for employees. For the protection of personal privacy, the consultations were conducted one on one.
3. Relation with investors and stakeholders’ rights: The Company has a spokesperson and an Investor Relation and Customer Service Center, the contact window and information of which are disclosed on the Company’s website, for investors to provide various opinions. In addition, the Company has a stakeholder section on its website to maintain good, smooth and diversified communication channels, and to formulate major management policies and implementation plans for major issues that stakeholders concern about.
4. Relation with suppliers: There are specific provisions specifying implementation of suppliers’ ethical management and sustainable development in the Company’s Ethical Corporate Management Best Practice Principles and Sustainable Development Best Practice Principles. The Company clearly includes corporate ethics and integrity, risk management, labor and human rights, social welfare, environmental protection etc. in its Supplier Management Policy, and discloses the same on its website.
5. Most of the Company’s directors have professional qualifications in securities and futures, and the Company maintains their core values and professional advantages and abilities through mechanisms and channels for directors’ continuous study and education. The Company also discloses information about directors’ completion of continuous education on MOPS and its website. In 2025, the Company’s all directors (including independent directors) have	No major discrepancy

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Evaluation Item	Actual governance
	Yes	No	Summary description
			completed more than 6 hours continuous education, 65 hours in total, please refer to page 88-89 of this annual report.
6. Implementation of risk management policies and risk measurement standards: The Company has established a “risk management system” which has been approved by the Board of Directors as the highest guiding principle for risk management which are participated and implemented by the Board of Directors, managers, and employees at all levels. Risk Management Department, as supervised by Audit Committee, makes necessary improvement suggestions, and reports to the Board of Directors at least once every half year, in accordance with the provisions of the “Risk Management System”, to timely reflect implementation of risk management, and it has made risk management implementation report to the Board of Directors in March, August and November 2025. In addition, in response to the expansion and development of the trading strategies and businesses of the Proprietary Trading Department and Leveraged Trading Department, the Company revised the securities proprietary trading risk management measures, proprietary trading risk management measures, and leveraged trading risk management measures.
7. Implementation of customer policy: The Company has established a “Treating Customer Fairly Guideline”, which includes ethical contract, fiduciary duty, authenticity of solicitation, suitability of goods or services, notification and disclosure, complex and high-risk commodity sales, equitable consideration to commission and performance, reporting protection and the professionalism of business personnel and other principles. Established a Treating Customer Fairly Committee, which is responsible for the planning and implementation of the Treating Customer Fairly Principle, and reports to the Board of Directors regularly (at least once a year) to ensure the implementation of the Treating Customer Fairly Principle.
8. Capital Financial Group purchases liability insurance for directors and supervisors every year.
IX. Please describe the improvement performed according to the corporate governance evaluation results published by the Governance Center of Taiwan Stock Exchange in recent years, and propose the matters with priority for improvement and the respective measures and Corporate:
The Company received a total score of 95.01 in 2024 corporate governance evaluation, ranking 21% to 35% among listed companies. The Company is committed to improving the protection of shareholders’ rights and interests and fair treatment of shareholders, strengthening the structure and operation of the Board of Directors,

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(VI) Implementation of the promotion of sustainable development and the deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies

Promotion items	Implementation
	Yes	No	Summary description
I. Does the Company have a dedicated (concurrent) unit set up to promote the sustainable development governance framework, and the Board of Directors authorizing the management to handle matters and report the supervision results to the Board of Directors?	V	1.	The Company has approved the Sustainable Development Best Practice Principles and the Sustainable Development Policy in its Board of Directors’ meeting, in order to establish its sustainable development promotion framework. The Company has also established Ethics and Sustainability Committee, a functional committee composed of three independent directors. Ethics and Sustainability Committee holds meeting at least once every year. Ethics and Sustainability Committee is responsible for formulating and supervising the implementation of Ethical Management policies and preventive measures, and promoting and supervising sustainable development and customer fair treatment-related matters.
2. The Company also has established an ESG Committee in October 2022, responsible for the planning and execution of various ESG tasks. The President acts as the convener, and the members consist of the heads of the Proprietary Trading Department, the Securities Proprietary Trading Department, the Managed Futures Department, the Leverage Transaction Department, the Financial Innovation Department, the Finance Department, the Domestic Institutional Clients Department, the Digital Growth Department, the Risk Management Department, the	No major discrepancy

Promotion items	Implementation
	Yes	No	Summary description
			Sustainability Management Office, and the General Affairs Department, as well as the corporate governance officer.
Sustainability Management Office acts as a full-time (part-time) unit, which promotes sustainable development and is responsible for operating sustainable development, and its major responsibilities are to formulate and review various rules and systems related to sustainable development, and it is responsible for preparing sustainability reports and sustainable development activity plans every year, and it continues to pay attention to domestic and overseas sustainable development issues and development trends, and advocates sustainable development to the company’s staff, with a view to shape the company’s sustainable development culture further.
Supervision of sustainable development by the Board of Directors
The Company formulates an annual sustainable development activity plan and submits it to the Ethics and Sustainability Committee and the Board of Directors for approval. The “ESG Committee”, the Sustainable Governance Office, and the Head of Corporate Governance are responsible for implementing sustainable development initiatives. The progress of sustainable development promotion and greenhouse gas inventory planning and implementation is reviewed on a quarterly basis, with implementation results reported at meetings of the Ethics and Sustainability Committee and the Board of Directors. The Board of Directors not only provides relevant recommendations and necessary adjustment opinions, and focuses on the clarity of the overall objectives of the sustainability strategy, but also ensures that the Company's promotion strategy complies with the requirements of the relevant laws and regulations and can make timely adjustments to its direction in order to avoid any deviation from the set objectives in accordance with the changes in the global and local sustainability regulations.
In 2025, the Ethics and Sustainability Committee held four meetings. The main proposals included reviewing the Company's Sustainability Report 2024, reporting the Company's implementation of ESG responsibility investment, handling of customer complaints, implementation of the KPIs of the fair customer treatment principle, the effectiveness of the implementation of the Sustainability Promotion Plan 2024 and the Sustainability Promotion Plan 2025, as well as amending the “Fair Customer Treatment” Assessment Form, the “Sustainable

50 -

Promotion items	Implementation			Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			Development Best Practice Principles” and the “Guidelines for Dealing with the Disputes from Consumers”, etc. These proposals were approved by the Ethics and Sustainability Committee and then submitted to the Board of Directors for resolution.
Relevant supervision suggestions of the Board of Directors:
• Customer Money Laundering Risk: Directors raised concerns regarding the identification of high-risk jurisdictions and inquired about the primary source countries of current high-risk customers. It was recommended that the Company continue to regularly review and monitor the risk profile of high-risk regions and customers in accordance with relevant laws and regulations and internal control systems, and strengthen anti-money laundering management.
• Principles for Recognizing Customer Complaints: Directors inquired about the definition and practical application of customer complaints. The Company currently adopts a relatively broad recognition principle: any complaint raised by a customer shall be filed and recorded to facilitate follow-up tracking and management and reduce the risk of unrecorded cases.
• Fair Treatment of Customers and Protection of Customer Rights and Interests: Directors recommended that the Company continue to attach importance to the Principle of Fair Customer Treatment and assess the feasibility of establishing a Customer Complaints Committee to enhance the protection of customer rights and interests and the appropriateness of complaint handling.
II. Does the company assess the risk of environmental, social, and governance (ESG) issues in relation to corporate operations based on the materiality principles and establish policies or strategies in relation to risk management?	V		In accordance with the Company’s “Sustainable Development Best Practice Principles” and the GRI Sustainability Reporting Standards, the Company has established an “Environmental, Social and Corporate Governance Risk Assessment Procedure” to examine sustainable issues such as environmental, social and corporate governance (ESG) related to the Company’s operations, and to perform analysis on major issues. The analysis on major issues refers to an assessment process of the importance and relevance of the Company, stakeholders and their interactions will be performed for specific issues such as environment, society, and corporate governance (ESG) (such as energy conservation and carbon reduction, climate change, political events, innovation, digitalization). With reference to the four principles of stakeholder inclusiveness, sustainability context, materiality, and completeness of the Global Reporting Initiative’s “Sustainability Reporting Guidelines,” the Company has reviewed the sustainability issues through identification, ranking, verification, and	No major discrepancy

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Promotion items	Implementation
	Yes	No	Summary description
			review, performed materiality analyses, and calibrated our strategies and long-term goals for sustainability management, which are also used as the guidelines for preparing the sustainability report. In this way, the Company has examined the current state of sustainability, promoted continuous improvement in each department, and created shared value for society and the Company. And the Company attaches great importance to stakeholders’ opinions and actively communicates with them through various channels. With reference to the eight principles of the GRI standards: accuracy, balance, clarity, comparability, completeness, sustainability context, timeliness, and verifiability, as well as the materiality issues of international benchmark companies and domestic counterparts, the Company annually reviews, identifies and adjusts the materiality issues related to the Company’s operations, and identifies three major themes and 23 sustainability issues. Based on the feedback from the stakeholders' questionnaires, the Company has identified the major themes for the current year in order of “level of concern of stakeholders” and “level of impact on the company’s operations”. When performing analysis on a major issue, each assessment aspect should consider the impact on stakeholder evaluations and decisions and the economy, environment, and society. And then formulate management policies for major issues based on assessed risks and review the Company’s sustainable management strategies and goals.
III. Environmental issues
(I) Does the company have an appropriate environmental management system established in accordance with its industrial characteristics?	V	(I)	The Company approved the Sustainable Development Best Practice Principles and the Sustainable Development Policy in its Board of Directors’ meeting. As for its policies, the Company establishes short-, medium- and long-term goals for sustainable development and environmental, social, corporate governance and other matters, and regularly reviews and formulates specific promotion plans or implementation schemes, and other execution measures, and requires its staff to jointly promote energy-saving and carbon-reduction and implements corporate sustainable management policy.

The Company has established an environmental management system and formulated relevant management policies and promotion measures covering the following aspects: compliance with laws, regulations and internal standards; governance mechanisms and responsibility allocation; energy conservation, carbon reduction and equipment maintenance; resource circularity and waste reduction measures; green procurement and supply chain management; as well as | No major discrepancy |

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Promotion items	Implementation			Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(II) Is the company committed to enhancing the power efficiency and using renewable materials that are with low impact on the environmental impacts?	V	(II)	information disclosure and stakeholder communication, so as to mitigate the environmental impact of its operations. The Company also continuously reviews the implementation of various management measures and adopts a rolling approach to improve environmental management practices, ensuring that the system is consistent with the operational characteristics of the financial industry and sustainable development objectives.

As a financial service provider, the Company has relatively low overall direct consumption and carbon emissions, but is still actively responding to the implementation of energy saving, carbon reduction and ecological conservation activities, paying attention to climate change issues, and committed to improving energy efficiency and continuing to actively promote paper lessness to reduce the consumption of paper, water resources, and various types of energy. Develop energy-saving and carbon reduction strategies and action plans, and actively evaluate and utilize renewable energy. Purchase equipment that meets energy efficiency and environmental protection standards, and continue to improve the resource utilization efficiency of office and electrical equipment to ensure that operations meet environmental protection and energy conservation goals.

The Company's circular economy initiatives focus primarily on resource recycling and waste reduction in daily operations. By promoting e-services and expanding the availability of financial information on various mobile devices, the Company reduces paper consumption. Internally, it holds free second-hand item release events and facilitates material sharing among employees to promote reuse and reduce waste generation. In terms of equipment management, the Company adopts a “lease instead of buy” model for water dispensers, photocopiers, company vehicles and other equipment to enhance utilization efficiency and reduce idle resources.

The Company has established an energy management plan. Through regular energy audits, target setting, implementation of measures, and performance reviews, it continuously improves energy use efficiency and enhances the efficiency of operational resource utilization, while steadily advancing energy efficiency improvements with the following specific target:
- Short-term (2026): Reduce electricity consumption per NT$ million of revenue by 3% compared with the base year.
- Medium-term (2029): Reduce electricity consumption per NT$ million of revenue by 5% | No major discrepancy |

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Promotion items	Implementation	Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description
(III) Does the Company assess the present and future potential risks and opportunities of climate change on the Company and take related actions?	V
• Long-term (2030): Reduce electricity consumption per NT$ million of revenue by 10% compared with the base year.
The scope of the Company’s energy usage disclosure mainly covers purchased electricity consumed in the provision of financial services at all operational locations across Taiwan. In addition, only a small amount of energy is consumed in the form of gasoline and diesel for company vehicles and emergency generators. The disclosure and analysis of energy performance primarily use purchased electricity as the evaluation item. In addition, since the Company does not yet use renewable energy, the renewable energy usage ratio is 0%.	No major discrepancy
Item/Year	2023	2024
Purchased electricity (thousand kWh)	1027.5882	1121.2958
Energy consumption (gigajoules)	3,699.93	4,036.67
Energy intensity (gigajoules/NT$ million of revenue)	1.8472	1.6729
Year-on-year increase/decrease ratio of energy intensity	-	-9.44%
Based on the Company’s overall energy consumption profile, its performance has met the established targets. Using 2023 as the base year and measuring against the intensity indicator of electricity consumption per NT$ million of revenue, the Company’s purchased electricity energy intensity was 1.6729 and 1.6464 gigajoules per NT$ million of revenue in 2024 and 2025, respectively, both lower than 1.8472 in the base year. This demonstrates continuous improvement in electricity efficiency per unit of revenue and achievement of the short-term target (2026) of a 3% reduction from the base year.
(III) In accordance with IFRS Sustainability Disclosure Standard S2 (IFRS S2), the Company regularly reports climate change risk management information to the Board of Directors annually to ensure the effective operation of its climate risk management mechanism. On May 8, 2025, the 10th meeting of the 10th Board of Directors was presented with the 2024 climate risk management information and the implementation status of related financial disclosures. Based on the IFRS S2 framework covering governance, strategy, risk management, metrics and targets, the

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Promotion items	Implementation	Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description
(IV) Did the Company produce statistics on the GHG emissions, water consumption, and total waste in the last two years? Has the company established policies for GHG reduction, water conservation, and waste management?	V
• GHG management:
The Company conducts annual greenhouse gas emission inventories to ensure control and management of the current status of greenhouse gas emissions, and promotes greenhouse gas reduction programs based on the results of the inventories.	No major discrepancy
Year	GHG emission (metric tons of CO2e)	GHG emission intensity (metric tons CO2e / consolidated NT$1 million revenue)
2023	545.1277	0.2722
2024	596.3297	0.2471
2025	555.2384	0.2274
• Waste management:
The Company's waste management focuses on source reduction and resource recovery to minimize the impact of waste on the environment. The Company belongs to the financial services industry, the waste generated during operation is mainly domestic garbage, and the Company has implemented a waste classification and reduction strategy by classifying waste into general garbage and recyclables: general garbage is handled by the building's property management company or a qualified cleaning company, while recyclables are properly handled by professional recycling vendors.
Year	Non-hazardous waste (metric tons)	Waste intensity (metric tons/head count)
2023	5.0969	0.0162
2024	6.4900	0.0200
2025	5.0280	0.0149

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Promotion items	Implementation	Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description

- With regard to water resource management, the Company incorporates water conservation and water efficiency improvement into the management policy for water resources. The measures taken include replacing high water-consuming equipment and selecting water-saving labeled products. The Company will continuously optimize its internal water use equipment and processes to ensure the efficiency of resource utilization, and encourage the incorporation of water-saving behaviors into office and daily life.
Year	Water consumption (metric tons)	Water consumption intensity (metric tons/head count)
2023	5544.1607	17.6005
2024	5245.1856	16.1390
2025	5136.6674	15.1972
The Company has also established environmental management targets covering greenhouse gas emissions, waste reduction and water resource management, and continues to implement relevant management measures to enhance resource management and reduce environmental impacts.
Additional information is available on pages 77-78 of this annual report.
IV. Social issues
(I) Does the Company have the relevant management policies and procedures stipulated in accordance with the relevant laws and regulations and international conventions on human rights?	V
(Purpose of Establishment) In striving to uphold and protect fundamental human rights, Capital Futures Corp. recognizes and endorses the spirit of human rights protection enshrined in international instruments including the “Universal Declaration of Human Rights”, the “United Nations Global Compact”, the “United Nations Guiding Principles on Business and Human	No major discrepancy

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Promotion items	Implementation	Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description

Human Rights Management Policy	Promotion Measures
Protection of Workplace Human Rights	The Company is committed to providing an equal, dignified, safe and diverse workplace, and prohibits human rights-violating practices such as forced labor, child labor and sexual harassment. The Company shall not provide differential treatment or discriminate against employees in any form on the basis of race, language, belief, religion, political affiliation, gender, sexual orientation, age, marital status, appearance or other status, so as to effectively protect employees’ workplace human rights.
• The Company establishes the Human Rights Policy and the Measures of Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace to prohibit discrimination, harassment and inappropriate treatment.
• The Company establishes a prevention plan against unlawful infringement in the performance of duties to prevent workplace violence and improper infringement, so as to safeguard employees’ safety and workplace human rights.
• The Company holds diverse training courses on human rights-related topics on a regular basis.
• The Company sets up complaint and whistleblower mechanisms as well as investigation procedures, providing confidential and anonymous channels. An investigation committee may be established where necessary to protect the rights and interests of complainants.
Promotion of Labor Rights and Labor-Management Harmony	The Company respects and supports the lawful exercise of labor rights by employees. It holds regular labor-management meetings to establish a communication platform between labor and management and foster a harmonious labor-management environment.
• The Company provides reasonable wages, working hours and leave

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Promotion items	Implementation
	Yes	No	Summary description
				systems in accordance with the law.
• The Company holds regular labor-management meetings to serve as a communication platform for labor and management.
• The Company clearly stipulates in the “Work Rules” that all employees shall participate in labor insurance and national health insurance, and their insurance premiums will be subsidized by the Company according to laws and regulations.
• The Company establishes employee feedback channels (mailboxes, platforms, etc.).
• The Company provides employee benefit programs (insurance, health promotion, employee activities, etc.).
• The Company promotes occupational safety and health management as well as health promotion activities.
			Support for Freedom of Association	The Company respects and supports employees’ rights to organize and join various associations, and expects employees to participate in legitimate activities in their leisure time to develop diverse interests and improve their quality of life.
• The Company respects employees’ rights to establish and join trade unions or organizations in accordance with the law.
• The Company does not interfere with employees’ participation in trade union or labor organization activities.
			Protection of Personal Privacy Rights	The Company is committed to protecting personal privacy and has established a sound mechanism for the preservation of personal data of customers and stakeholders to safeguard their privacy rights and interests.
• The Company formulates a Personal Data Protection Policy.
• The Company conducts education and training on personal data protection.
• The Company implements information security protection measures (access management, data encryption).

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Promotion items	Implementation
	Yes	No	Summary description
				• The Company establishes a notification and response mechanism for personal data breaches.
			Human Rights Advocacy for Business Partners	The Company encourages and invites its business partners to pay attention to and emphasize relevant human rights issues and risk management with equally high standards.
• The Company regularly promotes its corporate human rights policy and sustainability concepts to business partners.
• The Company encourages business partners to jointly promote human rights protection measures.
• The Company requires business partners to complete the “Supplier Corporate Social Responsibility Self-Assessment Form” upon signing contracts to conduct self-review on several ESG criteria, and conducts annual supplier evaluations on a regular basis.
			Employee Engagement / Satisfaction Survey: Capital Financial Group conducts an “Employee Engagement/Satisfaction Survey” at least once a year. At the end of the year, the Human Resources Office distributes anonymous questionnaires to collect employees’ opinions to ensure the objectivity and authenticity of responses. The survey covers eight categories: organizational atmosphere, leadership, management systems, job satisfaction, work environment, human rights protection, sustainable finance promotion, and organizational identification, with a total of 15 items, comprehensively reviewing employees’ overall perceptions of the Company’s systems, culture and work environment over the year. The survey targets all employees in Taiwan. Analysis of the survey results serves as an important reference for the Company to continuously optimize management systems, enhance employee care measures, and promote organizational sustainable development. Future improvement directions will focus on institutionalizing and structuring the existing positive atmosphere. In the future, the Company will enhance cross-departmental communication platforms, clarify the division of responsibilities and operational procedures, establish cross-unit project cooperation and regular coordination mechanisms, and promote cross-departmental

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Promotion items	Implementation	Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description
(II) Has the company established and implemented reasonable employee welfare measures (including remuneration, vacation, and other benefits) and appropriately reflected business performance and achievements in the remuneration for employees?	V	(II)

The implementation status of human rights related education and training in 2025: | No major discrepancy |
| Course topics | Attendance (person) | Course Duration |
| Gender equality awareness and rights and interests | 325 | 30 minutes |
| Workplace Unlawful Act Prevention Plan | 338 | 30 minutes |
| Human rights policy | 360 | 30 minutes |
| Complaints regarding labor disputes, human rights, discrimination and other issues in 2025: In 2025, there was one suspected employee complaint case. The investigation was concluded on December 23, confirming that the case did not involve workplace bullying. |
| The Company has established work rules and relevant personnel regulations covering basic wages, working hours, leave, pension payments, labor and health insurance benefits, and occupational disaster compensation for its employees, all of which comply with the relevant provisions of the Labor Standards Act. The formulation of the Company’s rules and regulations based on and abides by related labor laws and regulations to protect rights and interests of all employees. Please refer to pages 108-112 of this annual report.

• Operational Performance Reflected in Employee Compensation
The Company has established a reasonable reward system and has set up a remuneration committee to evaluate the fairness and reasonableness of employee rewards. The Company’s annual operating performance, consumer price index, industry benchmarks, and individual employee performance are linked to serve as the basis for annual salary adjustments and the distribution of year-end and festival bonuses. The salaries of new employees are determined based on market situation, their academic qualifications and |

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Promotion items	Implementation			Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			experience, as well as their positions and responsibilities, regardless of the gender. The salaries of general employees are approved by the President, while the salaries of senior managers are determined based on a comprehensive consideration of their academic qualifications and experience, the market situation in the same industry, their positions and responsibilities, the Company's internal remuneration policy, and the risks of future operations, which shall be approved by the Board of Directors after the review and approval of the Remuneration Committee.

The Company has established “Guideline for Employee Performance Evaluation”, “Guideline for Employee Year-End Bonus Distribution”, “Guideline for Festival Bonuses Distribution” and “Guideline for Sales Bonus” for each business unit, which serve as the basis for the performance evaluation and remuneration system of company executives and employees. The Company conducts annual employee performance evaluations covering both financial and non-financial indicators. Through its performance management mechanism, such evaluations are closely linked to variable compensation (including year-end bonuses, performance bonuses and employees’ remuneration).

In addition, it is specified in its Articles of Association that 0.6% to 2% of its profits in the current year shall be distributed as employee compensation (of which no less than 0.4% shall be allocated for entry-level employees), the Company’s operating performance shall be reflected in employee compensation to encourage employees to work together and share the Company’s operating results. Taking into account its operating conditions and industry characteristics, the Company distributed 1.18% of the current year's profits as employee compensation for the 2025 fiscal year. The scope of “entry-level employees” was resolved by the Board of Directors at its 10th meeting of the 10th term held on May 8, 2025, and will be regularly assessed for any necessary adjustments.

• Employee benefits:
The Company provides various types of leave in accordance with legal requirements. The Employee Welfare Committee has been established to provide employees with a wide range of welfare measures, such as wedding and funeral subsidies, hospitalization and surgery consolation payments, maternity subsidies, travel subsidies, birthday gifts, natural | |

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Promotion items	Implementation			Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			disaster consolation payments, and emergency relief, etc. Various employee activities have also been organized to enhance the cohesion and sense of identity of employees towards the Company. Funding sources include the welfare fund and its interest income, with allocations made proportionally based on the paid-in capital at establishment, employee salaries and revenue. The overall funding is sufficient, and all welfare measures are implemented as planned.

The Benefit Committee offered NT$3,298,249 of various subsidies in 2025.
The Company provided employees with NT$463,328 of sports clubs funds in 2025.
The Company implements an Employee Assistance Program (EAP) providing a dedicated consultation hotline and email channel to help employees receive timely and professional psychological support, fostering a workplace environment that supports physical, mental and spiritual health. The Company also arranges health consultation services with physicians, where professional medical staff are regularly stationed to provide one-on-one consultations to respect employees’ privacy and offer preventive health concepts and treatment advice. The Company prepares small festive gifts for employees on major holidays to create a warm and cheerful atmosphere, thereby enhancing employee cohesion and team bonding. To care for the health of colleagues with physical or mental disabilities, full-time employees with disability certification may apply for half-day paid public leave for health checkups each year. In addition, in order to encourage employees to participate in voluntary public service activities, the Company provides employees with volunteer leave to promote public interests.

• Employee Insurance:
In addition to providing labor insurance and national health insurance for employees in accordance with the law, the Company also purchases group insurance policies including life insurance, accident insurance, accident medical insurance and occupational disaster insurance. It also offers voluntary group insurance at preferential rates for employees and their dependents, including term life insurance, accident insurance, medical insurance and cancer insurance, to strengthen insurance protection for employees and their family members. | |

62 -

Promotion items	Implementation
	Yes	No	Summary description
			- Workplace Diversity and Equality:
- The Company is committed to equal pay for equal work and equal promotion opportunities for men and women. In 2025, the proportion of female employees was 45.56%, and the proportion of female supervisors was 45.58%. The Company also provides safety identification badges for pregnant employees and has established a lactation room to build a friendly and safe workplace. To support employees in balancing family care responsibilities, pregnant employees may apply for reassignment to a more suitable role that matches their capabilities. The Company also provides a “Mother Care Package” to express care for employees and newborns. Employees with children under the age of three may apply for shift adjustment, a one-hour reduction of daily working hours, or unpaid parental leave. In addition, the Company provides five days of paid parental leave that is more favorable than legal requirements, as well as 14 days of family care leave per year, without affecting individual performance reviews or other rights and interests.
- Retirement system
- In order to take care of the life of our employees after retirement, the Company has established the retirement regulations for our employees. In order to establish long-term harmonious labor-management relations, employees who have served for more than 10 years and have reached the age of 55, or have served for more than 20 years, can apply for early retirement in accordance with the provisions better than the Labor Standards Act. Employees who meet the legal requirements for voluntary retirement or mandatory retirement may apply for retirement at any time, and the criteria for pension payments are in accordance with the Labor Standards Act and the Labor Pension Act. The net obligation under the defined benefit pension plan is calculated based on the present value of the future benefits earned by the employees in the current period or in the past under various welfare plans. The net obligation is actuarially determined annually by a qualified actuary using the projected unit credit method, and a contribution is made annually to the employees' pension reserve under the defined benefit plan and the defined contribution plan. For employees who choose the pension system under the Labor Standards Act, the Company

63 -

Promotion items	Implementation
	Yes	No	Summary description
(III) Does the Company provide employees with a safe and healthy work environment, and provide safety and health education to employees regularly?	V		contributes 2% to 15% of the employees' total monthly wages to the Labor Pension Reserve Fund account at the Bank of Taiwan.
For employees who choose the pension system under the Labor Pension Act, the Company contributes 6% of employees' monthly wages to the individual pension accounts established by the Bureau of Labor Insurance. For employees who voluntarily contribute to the pension fund, the Company deducts the amount from the employees' monthly wages and deposits it into the individual pension accounts established by the Bureau of Labor Insurance according to the voluntary contribution rate.

(III) The Company attaches great importance to the personal safety as well as physical and mental health of its employees, provides and maintains a good working environment, and regularly implements general safety and health education and training. The Company, through international standard certification ISO 22301 Business Continuity Management System (Valid from November 26, 2023 to November 25, 2026), ensures to minimize any damage when it encounters sudden emergencies, so as to ensure personnel safety, legal compliance, customers' rights and interests, the Company’s goodwill and assets, and make sure that operation of its significant businesses may be resumed successively within a recovery time in order to maintain its operating. | | No major discrepancy |
| | | | Item | Content | |
| | | | Insurance and benefit | - Group insurances such as labor insurance, health insurance, employee life insurance, accident insurance, accidental medical treatment and occupational insurance are provided.
- To care for employees and their family members, the Company also assists in securing voluntary group insurance plans at discounted premiums, including term life insurance, accident insurance, medical insurance and cancer insurance.
- The Company has established “lactation rooms for employees”.
- The Company has set up a dedicated employee website, providing company announcements, education and training, a dedicated section for the Employee Welfare Committee, and a health education corner. This platform serves as a channel for employees to voice opinions and engage in interactive learning, | |

64 -

Promotion items	Implementation
	Yes	No	Summary description
				fostering a healthy and friendly workplace environment.
• The Company conducts employee health checkups every three years and cooperates with medical institutions’ health checkup centers to provide employees with preferential health checkup plans.
• To safeguard the health of employees with disabilities, “full-time” employees holding valid disability certification may apply for half-day paid “official leave” for health checkups each year.
• The Company has installed tunnel-type blood pressure monitors to enable employees to measure their blood pressure at any time, cultivating a habit of proactive health management.
• The Company has engaged contracted physicians to provide health consultation services four times a year and nurses four times a month on-site. Consultations are conducted on a one-on-one basis, ensuring both professionalism and privacy, and offering advice on disease prevention and health improvement.
• In 2025, employees utilized health consultation services a total of 135 times, including 79 general health consultations, 6 maternity protection consultations, 2 reports of excessive workload, 7 ergonomic hazard assessments, 16 follow-ups for abnormal new-hire health check results, and 25 mid-to-senior age fitness assessments.
• The Company promotes health education, safety and health awareness through diverse means, including email communications and in-person briefings by nurses during monthly company meetings. These efforts equip employees with health knowledge and practical resources to enhance self-health management and preventive awareness.
• Through regular health checkups, blood pressure monitoring equipment and professional consultation services, the Company assists employees in managing risks related to hypertension, hyperglycemia and hyperlipidemia.
• The Company provides on-site flu vaccination services. A total of 28 employees received vaccinations between October and November 2025,

65 -

Promotion items	Implementation
	Yes	No	Summary description
				reducing the risk of infectious diseases.
• The Company emphasizes the physical and mental health of our employees, encourages staff participation in sports and leisure activities, and offers subsidies for employees’ sports and entertainment club activities to foster regular exercise and healthy living habits.
• The Company provides free blind massage services to help employees relieve work-related stress and physical fatigue, thereby enhancing overall physical and mental health.
• The Company has implemented an Employee Assistance Program (EAP), offering a dedicated consultation hotline and email channel to provide employees with immediate and professional psychological support and assistance. This helps employees cope with work, family and emotional stress issues, building a workplace that prioritizes physical, mental and spiritual well-being.
• The Company prepares small festive gifts for employees on major holidays to create a warm and cheerful atmosphere, thereby strengthening employee cohesion, team bonding and a sense of belonging.
			Environment and Health	• The business premises are completely non-smoking, and the internal website provides promotional videos about the important regulations of the Tobacco Hazards Prevention Act and smoking cessation methods.
• Perform maintenance on the Company’s lighting equipment, air-conditioning filters, and drinking water facilities every six months, and comprehensively clean and disinfect the office environment.
• The office environment inspection and verification report are carried out every six months (April and October 2025).
			Safety certificate	Capital Financial Group has been certified by BSI’s ISO 22301 Business Continuity Management. The purpose of this certification is to ensure that the Company can minimize any damages when it encounters sudden emergencies, so as to ensure personnel safety, legal compliance, customers’ rights and interests, the Company’s

66 -

Promotion items	Implementation
	Yes	No	Summary description
				goodwill and assets, and make sure that operation of the Group’s significant businesses may be resumed successively within a recovery time in order to maintain its operating.
			Personal data authentication	Capital Financial Group leads the industry and is the first domestic financial institution to obtain and implement international certification for PIMS on securities, futures, and insurance agent/broker in accordance with the relevant requirements of the Personal Data Protection Act. The Company actively protects the rights of personal data, reduce the possible impact of any personal data file infringement incident, and continue to implement and improve the personal data management system.
			Employee safety	• Access control management and security management monitoring system are implemented for all personnel and office.
• Ensure communication channel is established with the police security unit for alert to maintain work safety.
• Perform maintenance and inspection of high and low voltage electrical equipment, lifts, air conditioners, drinking water facilities, fire-fighting appliances, and other equipment in accordance with the Company’s Occupational Safety and Health Work Rules, and update ceiling-mounted smoke detectors and fire extinguishers.
• Set up occupational safety and health supervisors and first aid personnel according to the “Occupational Safety and Health Act” and conduct training in accordance with Occupational Safety and Health Education and Training Rules.
• The Company has formulated and implemented the “Ergonomic Hazard Prevention Plan” and the “Abnormal Workload-Induced Disease Prevention Plan” to prevent ergonomic hazards that may cause work-related musculoskeletal injuries or diseases. In addition, the Company plans and adopts necessary safety and health measures to prevent diseases induced by abnormal

67 -

Promotion items	Implementation
	Yes	No	Summary description
			workloads such as shift work, night work and prolonged working hours.
• Personal and work fatigue scale questionnaires are conducted to serve as a basis for analysis and improvement in employee health management and occupational safety and health.
• The Company has formulated the “Measures of Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace” and the “Prevention Plan Against Unlawful Infringement in the Performance of Duties”. A Complaint Handling Committee has been set up to provide employees with appropriate complaint mechanisms and channels.
• There is no employee suffering occupational accident in 2025, accounting for 0% of the total number of employees.
• The labor safety and health education, training and promotion conducted by the Company in 2025
			Training Item	Total hours	Total Number of Employees Received Training
			Safety and health training for first responders	28	5
			General labor safety and health training	1,011	337
		Fire Safety	• Fire evacuation drills are held regularly every year. Fire inspections are outsourced every year according to the provisions of the Fire Services Act.
• A building fire drill was held on October 17, 2025, and there were no fire incidents in 2025.
		Insurance	The Company’s business premises and branches are insured with commercial fire insurance, electronic equipment insurance, and public accident liability insurance.

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Promotion items	Implementation
	Yes	No	Summary description
(IV) Does the Company have an effective career capacity development training program established for the employees?	V	(IV) The Company accords to the different career stages and organizational development needs of personnel at all levels, and also plan a comprehensive training plan and provide colleagues with timely and diversified learning channels, so as to achieve win-win benefits of organizational talent development and personal career development. Based on business operations, business direction and forward-looking development, the Company has designed comprehensive competency training for supervisors and employees at all levels. The Company builds a complete education and training system that creates an environment conducive to learning, including: new personnel training, professional training, managerial and supervisor training, and inviting experts and scholars to hold finance seminars. The Company assists employees in achieving continuous growth through diversified learning methods such as classroom training, digital learning, on-the-job training, external training, job rotation, and project assignment, etc. Please refer to pages 108-110 of this annual report.	No major discrepancy
(V) Does the company comply with the related laws and regulations and international standards regarding the customer health and safety, customer privacy, marking communication, and labeling of its products and services and establish policies to protect the rights and interests of customers and procedures for grievances?	V	(V) The Company has established “Personal Data Protection Policy” to implement personal data protection and management measures, safeguard the rights of personal data owners and minimize the impact of any infringement of personal data files, and continuously operate and improve the personal data management system. The Company has obtained international standard certifications such as BSI certification, ISO 27001 Information Security and BS 10012 Personal Data Protection, and has established comprehensive management and control mechanisms and measures for the protection of personal data. It covers the personal data protection objectives and policies to be followed by the Company's employees (including contract employees and part-time workers), suppliers, and service providers or personnel, as well as their roles and responsibilities in the planning, implementation and continuous improvement of personal data management. The Compliance and Legal Department is responsible for communicating and coordinating with all departments regarding compliance with personal data protection laws and regulations, providing necessary support for personal data protection practices, and overseeing departmental compliance with this Policy. All departments of the Company shall establish retention periods for the personal data they collect and record such information in the personal data inventory. Based on operational necessity, access permissions shall be assigned to relevant personnel, with regular reviews conducted to ensure appropriateness. The Company requires the partners to sign	No major discrepancy

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Promotion items	Implementation
	Yes	No	Summary description
(VI) Has the company established policies for management to request suppliers to comply with the relevant laws and regulations of environmental protection, occupational safety and health, and labor human rights? Does the	V		commitment letters to maintain the security of all personal data files and the sustainable operation.
In the fourth quarter of 2025, a three-hour training session on the Personal Data Protection Act was held, with 337 participants. Through systematic training arrangements, employees’ awareness of personal data protection has been enhanced.
The Company has established the “Principle of Fair Customer Treatment” to protect the rights and interests of financial consumers, ensure that the physically and mentally challenged have full access to equal and reasonably convenient financial services, and handle financial consumption disputes in a fair, reasonable, and effective manner, in order to increase financial consumers' confidence in the marketplace, and establish a corporate culture that emphasizes the protection of the rights and interests of financial consumers.
According to the regulations of the Company’s “Administrative Measures for the Production and Distribution of Publicity Materials for Advertisements, Solicitation or Promotional Activities”, employees engaged in advertisements, solicitation and promotional activities should submit relevant publicity materials and advertisements before using them externally. The content, after being reviewed by the supervisor for any inappropriate, misrepresented, misleading investors, or matters violating relevant laws and regulations, can be used after approval.
To protect the rights and interests of customers, the Company has established the “Guidelines for Dealing with the Disputes from Consumers” and the “Implementation Guidelines for the Whistle-blowing System”, and provided effective communication and complaint channels for customers. Customer service hotline: 412-8878 (please add 02 if you are calling by using a mobile phone); over-the-counter acceptance unit: The Company’s various business units.
(VI) Supplier management: In addition to the “Supplier Management Policy” on the Company’s website, which clearly includes corporate ethics and integrity, risk management, labor and human rights, social welfare and environmental protection, suppliers must fill in the “Supplier Corporate Social Responsibility Self-Assessment Form” when entering a new cooperation contract to conduct self-review on ESG issues such as environmental protection, occupational safety and health, labor and human rights, and fulfillment of corporate social responsibility, and comply with relevant regulations. Suppliers are also required to sign the Company’s “Letter of Undertaking in	No major discrepancy

70 -

Promotion items	Implementation
	Yes	No	Summary description
company keep track on the implementation of such policies?			Supplier Management Policy”, “Information Security Policy Statement”, “Personal Data Protection Policy Statement” and “Letter of Undertaking in Confidentiality”. The Company regularly audits suppliers engaged in outsourced personal data processing. The audits cover financial status and credit risk, legal compliance, contract performance capability, internal control and information security (including information security organization, personnel, physical environment, network communications and business continuity). Suppliers are required to implement improvements for any non-conformities. These measures not only ensure that suppliers meet information security requirements but also enhance their information security control capabilities through such audit activities. The Company has a total of five outsourced service providers. Regular annual assessments are conducted in accordance with regulations, and the assessment result in December 2025 was satisfactory. The Company regularly holds a supplier communication meeting in the 4th quarter of each year, and the unit contractor fills in the “Supplier Evaluation Form” to screen out the suppliers to be improved and conduct follow-up review and improvement. On December 15, 2025, online training was delivered to suppliers to ensure their joint compliance with and implementation of human rights and environmental sustainability policies. Supplier Evaluation and Follow-up Process:
			Regulations	• Supplier Management Policy
• Integrity Management Guidelines
• Sustainable Development Best Practice Principles	→ Implementation	• Supplier Corporate Social Responsibility Self-Assessment Form
• Letter of Undertaking in Supplier Management Policy, etc.
• Annual Supplier Education Training	→ Follow-up	• Regular Supplier Evaluation
• Follow-up Improvement and Disqualification

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Promotion items	Implementation			Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
V. Did the company, following internationally recognized guidelines, prepare and publish reports such as its sustainable environment report to disclose non-financial information of the company? Did the company apply for assurance or guarantee of such reports to a third-party certification body?	V		The Company prepares its Sustainability Report in accordance with the “Rules for Listed Companies to Prepare and Publicize Sustainability Report” of Taiwan Stock Exchange and with reference to the Universal Standards published by the Global Reporting Initiative (GRI). In addition, the Company discloses industry-specific indicator information with reference to the standards of the Sustainability Accounting Standards Board (SASB) and prepares a SASB Standards Cross-Reference Index. The Company has completed preparation of 2024 Sustainability Report in August 2025, which has been reviewed and approved by the Ethics and Sustainability Committee on August 19, 2025, and presented as a discussion proposal to and approved by the Board of Directors on August 21, 2025, and obtained CPAs’ assurance report. Assurance is issued by KPMG for the Report, on an independent and limited basis, based on the item I to item IV which shall be disclosed in financial insurance industry as specified in Attachment 1-3 under Article 4 of the Rules for Listed Companies to Prepare and Publicize Sustainability Report of Taiwan Stock Exchange, in accordance with the assurance rules No. 3000 Assurance for Audit or Review on the Financial Information That Are not Historical Financial Information issued by the Accounting Research and Development Foundation.	No major discrepancy
VI. If the Company has established the corporate social responsibility principles based on “the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies”, please describe any discrepancy between the principles and their implementation: The Company strictly follows the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and “Corporate Governance Best-Practice Principles for Futures Commission Merchants”, formulates the “Sustainable Development Policy” and “Sustainable Development Best Practice Principles”, and actively practices sustainable development. There is no major deviation in operation.
VII. Other important information that facilitates understanding of the implementation status of promotion of sustainable development: The Company discloses its Sustainability Report and related information on its website for stakeholders’ reference; Stakeholders also may communicate their opinion on the matters that they concern about by telephone, company website or email, and the Company will deal with it by dedicated personnel.

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(VII) Climate-related information and implementation status

Item	Implementation
I. The Board of Directors’ and management’s supervision and governance on climate-related risks and opportunities shall be explained.	1. The Company’s Board of Directors, its highest unit for supervising climate change risks and opportunities, is responsible for approving, reviewing, and supervising risk strategies and risk policies, and also shall lead the company to develop new climate-related business and opportunities. Ethics and Sustainability Committee, a functional committee under the Board of Directors, is composed of all independent directors, promotes and supervises sustainable development-related matters, reviews the policies and goals established, and supervises relevant implementation status and results. Ethics and Sustainability Committee regularly holds meeting (at least once a year), and reports to the Board of Directors.
2. The Company causes its president serving as the convener of the cross-department ESG Committee. Sustainability Management Office, a business unit under ESG Committee that deals with matters, is responsible for assisting the Committee in the matters related to exercising of its powers and duties. ESG Committee is responsible for the implementation of and supervision on ESG, and there are ESG Matter-related Investment Group, GHG Inspection Group, Climate Matter-related Management Group, and other task groups established under ESG Committee to promote various work. The risk management unit also regularly reports to the Board of Directors the company’s transition and physical risk changes as well as evaluation results, so that the Board of Directors and management can continuously and effectively grasp the issues related to sustainable development and climate changes.
II. How the identified climate risks and opportunities impact the company’s businesses, strategies and finance (in a short term, medium term and long term) shall be explained.	In compliance with the guidance for measurement on climate risks issued by TCFD and other international organizations, the Company identifies climate-related risks and opportunities, and actively develops solutions to respond to the three major management strategies, i.e. reducing carbon emission, proposing low-carbon service, and adapting to climate changes, with a hope to reduce any impacts on operation and finance brought by climate changes and to improve the company’s resilience against climate. The Company defines a short-term as future 3 years, a medium-term as 3 to 5 years, and a long-term as 5 to 10 years as the periods for evaluation on possible impacts brought by identified climate-related risks and opportunities, according to its climate change risk and opportunity evaluation methodology.
	Risk / Opportunity	Type	Short term (1-3 years)	Medium term (3-5 years)	Long term (5-10 years)
	Risk	• Transition risks
The risks related to the changes in policies and regulations, technologies, markets, social and economic conditions may occur during low-carbon transition course.	• Increase in carbon tax or carbon rate
• Low-carbon transition image (company reputation) not established yet	• Failure in development of low-carbon transition technologies	• Changes in market preferences
		• Physical risks
There may be immediate or long-term physical risks brought by climate changes in terms of weather patterns. Physical risks may have financial impacts on the company, such as direct damage to assets and indirect impacts caused by disruption in supply chains.	• Increase in flood
• Increase in drought	• Increase in flood
• Increase in drought	• Rise in average temperature
Opportunities	The efforts made to mitigate and adapt to climate changes will create opportunities for the company.	• Research and development of low-carbon digital financial services	• Improvement of resource using efficiency	• Sustainable finance-related commodities

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| | 1. Risks brought by climate changes
(1) In terms of transition risks, the company may encounter transition risks caused by the damage to reputation during low-carbon transition course because the image of attaching importance to low-carbon transition has not been established yet; The transition risks of decrease in profitability caused by the increase in the operation costs of investment objects resulting from the increase in carbon tax or carbon rate will have impacts in a short term. While, the transition risks of the decrease in profitability caused by the failure in development of low-carbon transition technologies for investment objects will have impacts in a medium term. The transition risks of reduced interest in the market in making investment in high-carbon-emission industries will have impacts in a long term.
(2) In terms of physical risks, the physical risks of decrease in its profitability caused by the loss of assets or increase in the operating costs of investment objects resulting from flood or drought will have impacts in a short and medium term. In addition, such events will also cause physical risks that the Company's own operating facilities would be damaged. The physical risks caused by rising average temperature to operating facilities and investment industries are expected to have significant impacts for a long term.
2. Opportunities brought by climate changes
In terms of opportunities, with the changes in the patterns of the transactions with customers, the Company will make investment in the research and development of low-carbon digital financial services, improve customers' on-line experience, and increase the number of transactions made through digital channels, which will have impacts on the business in a short term; And the Company will take energy-saving and carbon-reduction actions, and improve the using efficiency of resources, which will have impacts in a medium term. As for the development of green financial products or services, the Company hopes to give play to a role in changing the environment through financial products. If there are index investment developed due to climate or environmental changes in the future, futures will be the best channels for risk hedging, thus related futures commodities will inevitably occur, and there will be preparation made in futures industry. The impacts brought by climate changes on the supply, demand and price of bulk goods, if any, will have significant impacts on various commodity futures. The development of net-zero emission will drive the demands for futures in carbon rights trading, and the development of carbon-related emerging futures commodities will come soon. | | |
| --- | --- | --- | --- |
| III. The impacts of extreme climate events and transition actions on finance shall be specified. | The Company evaluates climate change risks, identifies the relevant risks that may have significant financial impacts, and proposes countermeasures. In order to identify and evaluate climate-related risks, the supervisors from various major business units discuss, as members, on the basis of working groups, the list of climate-related risks that they face by referring to TCFD’s suggestions for disclosure and relevant information about climate changes, and they finally summarize the results obtained by various units, and identify major climate risks. | | |
| | Transition Risk / Opportunity | | |
| | R: Risk / O: Opportunity | Financial impacts | Countermeasures |
| | R: Increase in carbon tax or carbon rate | ↓ | Investment management mechanisms or limits should be established for high-carbon-emitting industries. GHG emission should be understood during related investment evaluation course. Transition risks should be inspected at least annually, and changes in and early warning information about transition risks should be tracked. |
| | R: Failure in development of low-carbon transition technologies | ↓ | The development status of low-carbon transition technologies should be understood during investment course, and investment should be reduced or avoided in case of any significant risks. |
| | R: Changes in market preferences | ↓ | Related risks should be considered upon evaluation on the financial products related to high-carbon-emitting industries. Close attention should be paid to the current status and future trends of the industry, and investment in the stocks of such companies as lack of the concept of sustainable management or do not attach importance to climate risk management should be reduced gradually. |
| | R: Impacts on company’s | ↓ | Attention and response should be actively paid to climate risk-related issues, and corporate public |

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	reputation			welfare image and customers’ recognition should be improved.
	O: Research and development of low-carbon digital financial services		↑	The Company should strive to improve customers’ digital experience, improve customers’ trust and cooperative relationships with them, and increase revenue.
	O: Sustainable finance-related commodities		↑	The Company should timely participate in promotion of related commodities depending on the demands in mark and the development of objective conditions.
IV. How climate risk identification, evaluation and management procedures are integrated into the overall risk management system should be explained.	1. The Company’s Risk Management System has integrated climate-related risk management procedures into its overall risk management procedures, and amended its existing Sustainable Development Policy and Sustainable Development Best Practice Principles in 2023, and formulated the ESG Responsibility-based Investment Policy and the Key Points of Greenhouse Gas Inventory and Verification Operations. Capital Futures has established responsibility-based investment regulations to identify, evaluate and manage climate risks associated with each investment project, in order to implement due diligence governance, fulfill the loyalty obligations of the financial industry to maximize the interests of beneficiaries and shareholders, minimize the environmental and social risks caused by investments, and support the development of sustainable enterprises that have a positive impact on society and the environment. For customers in high carbon emission industries, additional due diligence and prudent evaluation are required to avoid investing in investment targets that lack the concept of sustainable management or do not emphasize climate risk.
2. For identified climate risks, the Company effectively controls climate-related operational risks by virtue of three-line defense mechanisms. The first line of defense is the business units. Various business units identify climate-related risks based on their business contents, and they formulate and implement countermeasures; The second line of defense is climate risk management unit, which is responsible for assisting in monitoring the implementation of climate risk management by the first line of defense; The third line of defense is audit unit, which evaluates the effectiveness of the climate risk management of the first and second lines of defense, and assists in inspecting and improving any deficiencies in overall risk control and verifying greenhouse gas inventory.
V. If scenario analysis is used to evaluate the resilience against climate change risks, the scenarios, parameters and assumptions used, as well as analysis factors and major financial impacts should be explained.	1. In order to ensure that the Company can operate continuously and stably in the face of various risks, the impacts of climate-related risks on businesses, strategies and financial planning are evaluated through scenario analysis method based on the situations that may occur within a specific scope.
2. Climate risk can be categorized into transition risk and physical risk
(1) Transition risk: Evaluation should be made according to the structure of NGFS based on seven relevant climate change scenarios, including orderly transition, disorderly transition, and out-of-control warming, etc. The carbon price is based on the scenario parameters released by NGFS Phase 5, and adopts the carbon prices set by 1.a GCAM6.0+ NGFS: Energy demand and CO2 emissions model for Taiwan in 2030 and 2050.
	Scenario			2030 Years	2050 Years
	Scenario 1	Orderly transition	Net Zero 2050	Low emission scenario, with approximately 1.4°C of warming	About 0.0000088% of decrease in net worth
	Scenario 2		Below 2°C	Moderate emission scenario, with approximately 1.8°C of warming	About 0.0000056% of decrease in net worth
	Scenario 3		Demand mitigation	Low emission scenario, with approximately 1.1°C of warming	About 0.0000082% of decrease in net worth
	Scenario 4	Disorderly transition	Delayed transition	Moderate emission scenario, with approximately 1.7°C of warming	0% of decrease in net worth
	Scenario 5	Global warming	Nationally Determined Contributions (NDCs)	High emission scenario, with approximately 2.3°C of warming	0.0000008% of decrease in net worth

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	Scenario 6	out of control	Current Policies	High emission scenario, with approximately 3°C of warming	0% of decrease in net worth	0% of decrease in net worth
Scenario 7	It is too late	A divided world	High emission scenario, with approximately 2.4°C of warming	0.0000002% of decrease in net worth	0.0000005% of decrease in net worth
(2) Physical Risk: According to the definition of climate risk proposed by the IPCC, the risk is composed of three factors: Hazard (H), Vulnerability (V), and Exposure (E). The “Hazard” factor is the probability of heavy rainfall and the depth of flooding it may cause; the “Vulnerability” factor is the percentage of asset value loss that may be caused by the impact of different depths of flooding, or the percentage of turnover loss that may be caused by the shutdown; and the “Exposure” factor is the value of the assets or turnover of the location where the company operates. Hazard (H) is estimated by applying the data provided by the financial industry's climate physical risk information integration platform (HAZ-flood-06-flooding-flooding probability (base method)-future-administrative district (township and city)). Hazard (H): Annual average probability of flooding
Scenario / Location No.	Middle of century (2041-2060)	End of century (2081-2100)
1	2	3	4	5	1
RCP 2.6	Probability of flooding	0.1%	0.2%	0.1%	0.04%	0.1%
RCP 4.5	0.1%	0.1%	0.1%	0.04%	0.1%	0.1%
RCP 6.0	0.04%	0.1%	0.1%	0.04%	0.1%	0.1%
RCP 8.5	0.1%	0.1%	0.1%	0.1%	0.1%	0.5%
Vulnerability (V) X Exposure (E): Damage scenario at the time of disaster	Expected annual loss amount (R=H×V×E)
Scenario	Middle of century (2041-2060)	End of century (2081-2100)	Scenario	Middle of century (2041-2060)
RCP 2.6	Flooding	NT$ 2,560,000	NT$ 2,670,000	RCP 2.6	Flooding	NT$ 2,600
RCP 4.5	NT$ 16,940,000	NT$ 18,490,000	RCP 4.5	NT$ 16,900
RCP 6.0	NT$ 1,280,000	NT$ 127,650,000	RCP 6.0	NT$ 500
RCP 8.5	NT$ 16,890	NT$ 230,470,000	RCP 8.5	NT$ 16,900
VI. If there is a transition plan corresponding to management on climate-related risks, the contents of the plan as well as the indicators and goals used to identify and manage physical and transition risks shall be explained.	1. The following action plan is proposed and will be gradually implemented in the future in order to move towards the sustainable development goal of net-zero carbon emissions by 2050: (1) Make an inventory of greenhouse gas emissions and plan for short-, medium- and long-term sustainability goals. (2) Introduce relevant environmental and energy management systems. (3) Plan for the procurement of renewable energy and set energy conservation targets. 2. Taking the year 2023 as the base year, the indicators and targets for identifying greenhouse gas emissions are described in Section 9, and the indicators for identifying and managing physical risks and transition risks are described in Section 5. The countermeasures are as follows: (1) Transition Risk: Capital Futures has established responsibility-based investment regulations to identify, evaluate and manage climate risks associated with each investment project, in order to implement due diligence governance, fulfill the loyalty obligations of the financial industry to maximize the interests of beneficiaries and shareholders, minimize the environmental and social risks caused by investments, and support the development of sustainable enterprises that have a positive impact on society and the environment. For customers in high carbon emission industries, additional due diligence and prudent evaluation are required to avoid investing in investment targets that lack the concept of sustainable management or do not emphasize climate risk.

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(2) Physical Risk: All of Capital Futures’ operations are located in metropolitan areas with relatively perfect flood control facilities, and the maximum daily rainfall in such areas throughout the year does not exceed the disaster-causing standard, i.e. 600 mm in 24 hours. Therefore, there is no immediate risk of flooding; however, we have formulated a Business Continuity Management (BCM) plan and conduct regular drills.

VII. If internal carbon pricing is used as a planning tool, the basis for establishing the price shall be explained.

The Company has no internal carbon pricing plan at present. For industries that are not high carbon emitters, the implementation of an internal carbon pricing mechanism may result in additional administrative and calculation costs that may outweigh the potential benefits, making the overall economic benefits unclear.

VIII. If there are climate-related goals established, the activities covered, the scope of GHG emission, the planning schedule, annual achievement progress and other information shall be explained; If carbon offset or renewable energy certificates (RECs) are used to achieve relevant goals, the source and quantity of offset carbon reduction credits or the quantity of renewable energy certificates (RECs) shall be explained.

The Company carries out GHG inspection in accordance with ISO14064, has obtained the CPA assurance for 2024 GHG inspection in 2025, and will gradually achieve the short-, medium- and long-term goals corresponding to management on climate-related risks and opportunities. Please refer to Section 9 below for the planning schedule and annual achievement progress of greenhouse gas emission reduction.

IX. GHG inspection and assurance status and reduction goals, strategies and specific action plans

(1) The aggregate greenhouse gas emissions and assurance status of the Company and all subsidiaries included in the consolidated financial statements are summarized below:

Year	Boundary and Coverage	Scope	Emissions (metric tons CO₂e)	Subtotal	Intensity (metric tons CO₂e per NT$ million of turnover)	Total (The Company + Subsidiaries)	Intensity (metric tons CO₂e/consolidated NT$ million of turnover)	Assurance made by	Description about assurance
2025	Operation locations of Capital Futures Corp. in Taiwan	Scope 1	27.9943	555.2384	0.2274	647.3921	0.2230	KPMG	ISAE 3410/Limited assurance
		Scope 2	527.2441
	Subsidiaries	Scope 1	5.6188	92.1537	-			Assurance has not yet been performed
		Scope 2	86.5349
2024	Operation locations of Capital Futures Corp. in Taiwan	Scope 1	42.4096	596.3297	0.2471	651.8389	0.2470	KPMG	ISAE 3410/Limited assurance
---	---	---	---	---	---	---	---	---	---
		Scope 2	553.9201
	Subsidiaries	Scope 1	4.0000	55.5092	-			Assurance has not yet been performed
		Scope 2	51.5092
2023	Operation locations of Capital Futures Corp. in Taiwan	Scope 1	36.4715	545.1277	0.2722	545.1277	0.2722	KPMG	ISAE 3410/Limited assurance
		Scope 2	508.6562

Scope: The Company’s greenhouse gas inventory covers all its operation locations in Taiwan; for subsidiaries, the inventory covers each subsidiary’s operation locations.
Description about assurance: The greenhouse gas inventory (Scope 1 & Scope 2) of the Company (excluding subsidiaries) has been assured by KPMG, which issued a limited assurance opinion. Due to their smaller scale of operations, subsidiaries have not been included in the scope of this assurance.
Greenhouse Gas Emission Intensity: In 2025, the Company’s intensity was 0.2274 metric tons $\mathrm{CO}{2}\mathrm{e}$ per million in turnover, representing a $16.43\%$ reduction compared to 0.2722 metric tons $\mathrm{CO}{2}\mathrm{e}$ per million in turnover in 2023 (base year).

The Company sets the year of 2023 as a base year, and classifies short-term (2024-2026), medium-term (2027-2029), and long-term (2030), as shown in the table below. In recent years, the Company's operation scale has been expanding and the number of employees has been increasing. However, with effective energy-saving and carbon reduction measures, the Company's overall direct consumables, water and electricity consumption and carbon emissions have been effectively controlled. The Company's operational needs mainly include the procurement and maintenance of information equipment and the procurement of facilities and consumables for business-related matters. Therefore, the Company will continue to implement green procurement, and mainly purchase from local vendors in Taiwan and its operation locations to ensure the stability and localization of the supply chain. The Company will continue to promote relevant energy saving and carbon reduction measures, fully promote e-energy conservation, waste reduction, resource recycling and reuse, and implement the environmental protection awareness by daily operations improvement. In the future, the Company will audit the achievement status of the goals and make adjustment on a rolling basis depending on external environmental trends, with a hope to mitigate the impacts of climate changes through such goals-based management to maintain a normal and stable operation and move toward net-zero carbon emissions.

Goal	Short term (2024-2026)	Medium term (2027-2029)	Long term (2030)
GHG emission	Carbon emission per unit revenue is reduced by 3% as compared with the base year	Carbon emission per unit revenue is reduced by 5% as compared with the base year	Carbon emission per unit revenue is reduced by 10% as compared with the base year
Waste reduction	The amount of waste per person is reduced by 3% as compared with the base year	The amount of waste per person is reduced by 5% as compared with the base year	The amount of waste per person is reduced by 10% as compared with the base year
Water resources management	The amount of waste per person is reduced by 1% as compared with the base year	The amount of waste per person is reduced by 3% as compared with the base year	The amount of waste per person is reduced by 5% as compared with the base year

Achievement Status of Reduction Targets:

GHG emission intensity:

In 2025, the GHG emission intensity was 0.2274, a decrease of $16.43\%$ from the base year, showing a continuous downward trend. Although the Company’s operating scale and number of employees have increased year by year, its greenhouse gas emission intensity has continued to decline, demonstrating that the Company has steadily reduced emission intensity per unit of operation through enhanced energy management and improved resource efficiency while achieving business growth.

Waste intensity:

In 2025, waste intensity was 0.0149 metric tons per employee, a decrease of $8.06\%$ from the base year. Despite the growth in headcount, the Company’s overall waste generation decreased compared with the base year, resulting in a downward trend in waste intensity per employee.

Water consumption intensity:

In 2025, water consumption intensity was 15.1972 metric tons per employee, a decrease of $13.65\%$ from the base year. Along with the increase in employees, the Company’s overall water consumption decreased compared with the base year, leading to a continued downward trend in water intensity per employee.

Please refer to the data on greenhouse gas emission intensity, waste intensity and water consumption intensity disclosed on pages 53-56 of this annual report.

(VIII) Performance in ethical corporate management inconsistency with the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"

Evaluation Item	Actual governance			Variation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx-Listed Companies and the reasons
		Yes	No		Summary description
I.	Business Integrity Policy and action plans
(I)	Has the Company established policies for ethical corporate management approved by the board of directors and stated such policies and practices in its regulations and external documents and in the commitment made by the board of directors and senior management to actively implement such policies?	V		(I) The Company has formulated the “Ethical Corporate Management Best Practice Principles”, the “Procedures for Ethical Management and Guidelines for Conduct”, and the “Code of Conduct” as approved by its Board of Directors, which stipulate that directors, managerial officers, employees, appointees, or persons with substantive control shall abide by the principle of integrity and refrain from engaging in unethical conduct. Directors and senior management have signed the Ethical Corporate Management Policy Compliance Statement, indicating that the Board of Directors and the management are actively fulfilling the commitment of ethical corporate management. The Company also discloses its ethical corporate management policies, ethics and integrity-related operating procedures and guidelines on its website to make sure suppliers, customers and other relevant corporates and persons understand its faith and rules of ethical management.	No major discrepancy
(II)	Has the Company established an assessment mechanism of risk from unethical behavior to regularly analyze and assess business activities with higher risk of involvement in unethical behavior and preventive programs for unethical behaviors containing at least the preventive measures stated in paragraph 2, Article 7 of the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx-Listed Companies?”	V		(II) The Company has established a risk assessment mechanism for unethical conduct, and has formulated a “Self-Assessment Form for Unethical Conduct” for regular analysis and evaluation every year. In addition, business activities with a high risk of unethical conduct within the business scope are specified in various rules and regulations. In accordance with Article 7 of the Company's “Ethical Corporate Management Best Practice Principles”, 8 major unethical risk factors and 30 risk items are defined based on the types of unethical conduct and the industry characteristics of the Company. In 2025, the Company was evaluated as at a low risk of unethical conduct based on the self-evaluation of unethical risk factors, while taking into account the existing framework of authority and responsibility related to the fulfillment of ethical corporate management and the overall risk control measures, and the fact that no significant incidents of unethical conduct have been reported by the Company. The Company also implements an employee ethic guarantee insurance system, which is insured at different levels according to the type of business handled by employees. Its covers	No major discrepancy

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Evaluation Item	Actual governance
	Yes	No	Summary description
(III) Has the Company established in the preventive programs the operating procedures for unethical behavior prevention, penalties and grievance systems of breaching the guidelines for conduct, and implemented and periodically review them?	V		the financial loss of the Company caused by employee robbery, theft, fraud, misappropriation or other illegal acts.
(III) The Company’s “Procedures for Ethical Management and Guidelines for Conduct” stipulates norms and handling procedures for various unethical conduct. It also incorporates ethical corporate management into employee performance evaluation and human resources policies, and establishes clear and effective reward, punishment and report systems. Under serious violation of ethical corporate manage, the person will be dismissed or terminated in accordance with relevant laws and regulations or the Company’s HR regulations.
The Company regularly evaluates the effectiveness of the preventive measures established for the implementation of ethical corporate management, and evaluates the compliance with relevant business processes. The relevant guidelines are also reviewed and revised in line with changes in internal and external regulations.	No major discrepancy
II. Proper enforcement of business integrity
(I) Does the Company have the integrity of the trade counterparty assessed and with the code of integrity expressed in the contract signed?
(II) Has the Company established a dedicated (concurrent) unit to implement ethical corporate management under BOD and report regularly(at least once a year) to BOD the status of implementation and supervision of ethical management policy and preventive programs of unethical behavior?	V		(I) The Company evaluates the ethical records of the counterparties, and specifies the relevant ethical conduct clauses such as ethical conduct, information security, privacy protection policy statement and confidentiality agreement. If the activity involves dishonest behavior, the other party may unconditionally terminate or cancel the contract at any time.
(II) The Company has set up the Ethics and Sustainability Committee under the Board of Directors to act as a dedicated unit to promote Ethical Corporate Management. It is responsible for formulating and supervising the implementation of Ethical Management policies and preventive measures. The Company regularly assesses the effectiveness of the preventive measures established for implementing ethical management and evaluates compliance with relevant business processes. It has also established an unethical conduct risk assessment mechanism to regularly analyze and evaluate business operations within its scope of operations that carry relatively high risks of unethical conduct. It will conduct an annual review of the Company's fulfillment of ethical management and report to the Board of Directors on a regular basis (at least once a year). On November 6, 2025, it reported the	No major discrepancy
No major discrepancy

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Evaluation Item	Actual governance
	Yes	No	Summary description
(III) Does the Company have developed policies to prevent conflicts of interest, provided adequate channel for communication, and substantiated the policies?	V		Company's fulfillment of ethical management to the Board of Directors (including the results of self-evaluation of the risk of unethical conduct), and the current fulfillment of ethical management was described with reference to the 11 major aspects of the control measures of the ISO37001 anti-bribery management system.
On November 12, 2025, the Company conducted a publicity campaign for its directors on the statutory themes of ethical management and sustainable development, prevention of insider trading, anti-money laundering and counter-terrorism financing, fair customer treatment and financial friendliness, and the Convention on the Rights of Persons with Disabilities (CRPD). In addition, we are actively organizing related publicity courses for our colleagues and have designed a post-course test system, which must be passed before completion of the course.
(III) The Company has established “Procedures for Ethical Management and Guidelines for Conduct” and “Management Measures for Responsible Persons and Associated Persons Holding Concurrent Positions”; If any director is an interested party with respect to any agenda item, the director shall state the important aspects of the interested party relationship at the respective meeting. The director may not participate in discussion or voting on that agenda item, and further, shall enter recusal during discussion and voting on that item and the matter shall be recorded in the meeting minutes. When an employee conducts business and finds that it is possible to obtain illegitimate benefits with himself or with the stakeholders, in addition to reporting the relevant matter to the department supervisor and the Company’s special unit, department supervisor shall provide appropriate guidance.
(IV) Has the Company established an effective accounting system and an internal control system for the internal audit unit to establish related audit programs based on the results of risk assessment of involvement in unethical behavior to audit and prevent the compliance with the preventive programs of	No major discrepancy
No major discrepancy

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Evaluation Item	Actual governance	Variation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx-Listed Companies and the reasons
Yes	No	Summary description
unethical behavior or hire a CPA to perform the audit? (V) Has the Company organized corporate management internal and external education and training programs on a regular basis?	V
Course topics	Number of persons per time	Hours
Prevention of short-swing/insider trading and reporting of shareholdings by insiders for the 1st quarter	378	3
Prohibited activities relating to futures for the 1st quarter	379	3
Advertising and on-line marketing for salespersons for the 1st quarter	204	3
Financial Consumer Protection Act, and Treating-Customer-Fairly Principle (including friendly service, ethical management, advertising and publicity) for the 2nd quarter	368	3
Whistleblowing system for the 2nd quarter	370	3
Advertising and on-line marketing for salespersons for the 3rd quarter	214	3
The compliance with the laws concerning anti-money laundering and anti-terrorism for the 3rd quarter	334	3
Advertising and on-line marketing for salespersons for the 4th quarter	215	3
Personal Data Protection Act for the 4th quarter	337	3
III. The operations of the Company’s Report System (I) Does the Company have a specific report and reward system stipulated, a convenient report	V

Evaluation Item	Actual governance			Variation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx-Listed Companies and the reasons
	Yes	No	Summary description
channel established and a responsible staff designated to handle the individual being reported?	V		Internal Auditing Department accepts and investigates reported cases. The whistleblower can report through the following channels: Hotline and E-mail: the hotline and e-mail for whistleblowing disclosed on the Company’s website.
Written letter to address: the Company’s address.
Recipient of the written letter: the whistleblowing system acceptance unit.
※In 2025, the Company received one whistleblowing case. Upon completion of the investigation, a written report containing the investigation results and proposed handling actions was prepared, and the whistleblower was notified of the outcome.
Based on the Company’s “Implementation Guidelines for the Whistle-blowing System”, anyone shall report any crime, fraud or violation of laws and regulations within the Company upon discovery. Types of cases accepted: criminal acts, fraudulent acts and violations of law or regulation. The acceptance unit and the investigation unit of the reported case are the Internal Auditing Department.
The Company shall provide the following protection to the whistleblower:
1. The identity information of the whistleblower shall be kept confidential, and information sufficient to identify the identity shall not be disclosed.
2. If there is a violation of the confidentiality, it should be sent to the Human Resources Arbitration Committee for review and handled in accordance with the Company’s relevant work rules.
If the report’s accuracy is verified, the Company may base on its contribution to the corporate governance, grant proper award to the reporter in accordance with the Company’s personnel regulations.
(III) Has the Company taken proper measures to protect the whistle-blowers from suffering any consequence of reporting an incident?	No major discrepancy
(II) Has the Company established standard operating procedures for investigating reported events, follow-up measures to be taken after the investigation was completed, and related confidentiality mechanisms?
(III) Has the Company taken proper measures to protect the whistle-blowers from suffering any consequence of reporting an incident?	V		(III) The Company shall not terminate, dismiss, downgrade/relocate, give a reduction in pay, impair to any entitlement under the law, contract or customs, or other unfavorable disposition due to the reported case.	No major discrepancy
IV. Enhanced information disclosure
(I) Does the Company have the	V		The ethical management-related rules and systems, the Ethical Corporate Management Best Practice Principles and the Procedures for Ethical Management and Guidelines for Conduct, are disclosed on	No major discrepancy

83 -

Evaluation Item	Actual governance
	Yes	No	Summary description
contents of corporate management and its implementation disclosed on the website and MOPS?			the Company's website and MOPS, and the implementation status of the courses related to advocating ethical management (including insider trading and anti-money laundering) to colleagues is disclosed.
V. Where a Company has worked Ethical Corporate Management Guiding Principles in accordance with the “Corporate Social Responsibility Best Practice Principles for TWSE/TPEx-Listed Companies”, please expressly elaborate on the differential gap between the substantial performance and the Practice Principle: The “Ethical Corporate Management Best Practice Principles”, “Procedures for Ethical Management and Guidelines for Conduct” operated and formulated by the Company all follow the “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies”.
VI. Other vital information that helps to understand the practice of business integrity of the Company (e.g., the review and revision of the best-practice principles of the Company in business integrity). The Company regularly or irregularly reviews and amends ethical management-related regulations, and announces the latest revisions through the Company's internal website to enable investors and the company’s staff to understand the Company’s ethical management policies.

84 -

(IX) Any other material information that would afford a better understanding of the status of the company's implementation of corporate governance: None.

(X) Hands-on performance in the internal control system:

For the Internal Control Statement, please refer to the Market Observation Post System at: Single Company → Corporate Governance → Corporate Regulations/Internal Control → Public Announcement of Internal Control Statement https://mops.twse.com.tw/mops/#/web/t06sg20
When commissioned Certified Public Accountant(s) in the review of the internal control system, the review report shall be disclosed: None.

(XI) In the latest year until the date as of Annual Report issuance, and board the shareholders' meeting had resolved significant decisions

Resolutions and Implementation Status of the 2025 Annual General Meeting of Shareholders (May 29, 2025)

Subject		Resolution	Implementation
Proposals items	Proposal for 2024 annual business report and consolidated and individual financial report	After the voting result reaches the statutory approval amount, this proposal is approved as it was.	It shall be handled and announced in accordance with the resolutions of the general meeting of shareholders
	Proposal for distribution of 2024 earnings	After the voting result reaches the statutory approval amount, this proposal is approved as it was.	The distribution was completed according to the resolution of the general meeting of shareholders, and the cash dividend was NT$ 2.83. Ex-dividend date: June 24, 2025. Payment date: July 15, 2025
Discussion matters	Proposal for amendment to the Articles of Association	After the voting result reaches the statutory approval amount, this proposal is approved as it was.	The change was registered as approved by the Ministry of Economic Affairs on July 11, 2025, and announced on the Company’s website.

In the latest year until the issuance date of Annual Report, the board had resolved significant decisions:

Date	Summary of Important Agenda
2025.1.14
8th meeting of the
10th Board of Director	• Improvement Plan for the Ratio of Adjusted Net Capital of Futures Dealers to Total Customer Margin Required for Unwritten Positions of Futures Dealers of the Company
• Proposal for 2025 Annual Operating Plan and Budget
• Matters related to the determination of the subscription base date of the Company's cash capital increase in 2024
• Proposal for cash capital increase and employee share subscription of the Company in 2024
• Proposal for 2024 performance evaluation results for supervisors at managerial level (inclusive) and above
• Proposal for 2024 year-end bonus distribution for supervisors at managerial level (inclusive) above

Date	Summary of Important Agenda
2025.3.6
9th meeting of the
10th Board of Director	• 2024 Anti-Money Laundering and Counter-Terrorism Financing Internal Control System Declaration
• Proposal for 2024 Design and Implementation Declaration of Internal Control System
• Amendment to the Company’s Internal Control System
• Amendment to the Procedures for Handling Material Inside Information
• Amendment to the Articles of Association
• Proposal for employment of the head of the Securities Channel Division, Omni-Channel Department
• Proposal for promotion and official appointment of the supervisor of the Sales Division IV of the Taichung Branch
• Proposal for promotion of the supervisors at manager level (inclusive) or above in 2025
• Proposal for 2024 Employee and Director Remuneration Distribution
• Proposal for 2024 Annual Business Report and Consolidation and Individual Financial Report
• Proposal for 2024 Profit Distribution
• 2025 certified accountant independence assessment
• 2025 Annual Quotation of Accountants’ Auditing Fees
• Determine the date, venue and agenda of the 2025 Annual General Meeting of Shareholders and accepting proposals from shareholders holding more than 1% of the shares
2025.5.8
10th meeting of the
10th Board of Director	• Consolidated financial statements of the 1st quarter of 2025
• Application of futures manager business for an increase of allocated working capital
• Extension of the period for implementation of the Guideline for Managed Futures Department Bonus
• Formulation of “Guidelines for Sales, Referral, and Bonuses for Financial Innovation Business”
• Amendment to the “Guideline for Festival Bonuses Distribution”
• Proposal for the promotion and salary adjustment of the head of the Securities Investment Consulting Department
• Proposal for organizational reassignment of sales team leaders in the Sales Department
• Proposal for the definition of entry-level employees of the Company
• Proposal for adjustment to the remuneration of the supervisors at manager level (inclusive) or above in 2025
• Proposal for 2024 employee compensation
• Proposal for 2024 director's remuneration distribution
2025.5.29
11th meeting of the
10th Board of Director	• Proposal for salary adjustment for Head of the Proprietary Trading Department
• Proposal for promotion and salary trading and salary adjustment for department heads at manager level and above in the Leveraged Trading Department
2025.8.21
12th meeting of the
10th Board of Director	• Individual and Consolidated Financial Report for the 1st half of 2025 (January 1 to June 30)
• Amendment to the Company’s Internal Control System
• Revision to the Implementation Guidelines for the Whistle-blowing System
• The 2024 Sustainability Report of the Company
• Proposal for promotion of the supervisor of Managed Futures Department and adjustment to his/her salary
• Proposal for promotion and official appointment of the supervisor of the Sales Division III of the Taichung Branch
• Proposal for the 1st half of 2025 performance evaluation results for supervisors at managerial level (inclusive) and above
• Proposal for the Company to pay festival bonus to the supervisors above manager level (inclusive) and bonus to Futures Proprietary Trading Department in the first half of 2025

86 -

Date	Summary of Important Agenda
2025.9.17
13th meeting of the
10th Board of Director	• Proposal for the proposed change of the subsidiary “Capital Futures Technology (Shanghai) Co., Ltd.” name to “QIT Technology Co., Ltd.” and the amendment of its “Articles of Association”
• Proposal for the establishment of a Chengdu Branch of the subsidiary “Capital Futures Technology (Shanghai) Co., Ltd.”, and the reassignment of its Chairman, Vice Chairman, Directors, Supervisor, and President
• Proposal for the liquidation and dissolution of the subsidiary “True Partner Capital Technology (Chengdu) Co., Ltd.”
• Proposal for amendment to the Procedures for Acquisition or Disposal of Assets
• Proposal for salary adjustment for Omni-Channel Department's supervisors at managerial-level and above
2025.11.6
14th meeting of the
10th Board of Director	• Proposal for bonus of the internal incentive activities of the Sales Department and Taichung Branch
• Proposal for application for credit line by the subsidiary CSC Futures (HK) Ltd. from Taishin International Bank Co., Ltd. and issuance of “Letter of Comfort” by the Company
• Proposal for risk tolerance and exposure limits for leveraged margin business of the Financial Innovation Department
• Consolidated financial statements of the 3rd quarter of 2025
• Amendment to the Company’s Internal Control System
• The Company's audit plan for 2026
• Set the Company’s customer fair treatment KPI for 2026
• Amendment to the Guidelines for Dealing with the Disputes from Consumers
• Amendment to the Sustainable Development Best Practice Principles
• Amendment to the “Business Approval Authority Table”
• Amendment of the “Guideline for Employee Performance Evaluation”
• Proposal for exemption of calculating the lost amount of the bonus calculation basis for Proprietary Trading Department for the year of 2024 and January to March 2025
• Proposal for 2025 year-end bonus based on two-month basic salary
• Proposal for salary adjustment for the vice chairman of the subsidiary “Capital Futures Technology (Shanghai) Co., Ltd.”
2025.11.12
15th meeting of the
10th Board of Director	• The Company increases capital investment in its subsidiary CSC Futures (HK) Ltd. by HKD 120,000,000
2026.1.16
16th meeting of the
10th Board of Director	• Proposal for the merger of the Company’s “Investment Advisory Department” and “Securities Investment Consulting Department”
• Proposal for changes in the managerial officer of Futures Advisory Department
• Proposal for salary adjustment for employees of the Investment Advisory Department
• Amendment to the Organization Regulations
• Proposal for the amendment to the “Personal Data Management Objectives and Policies”
• Proposal for 2026 Annual Operating Plan and Budget
• Proposal for 2025 performance evaluation results for supervisors at managerial level and above
• Proposal for 2025 year-end bonus distribution for supervisors at managerial level above
2026.3.4
17th meeting of the
10th Board of Director	• 2025 Anti-Money Laundering and Counter-Terrorism Financing Internal Control System Declaration
• Proposal for 2025 Design and Implementation Declaration of Internal Control System
• Amendment to the Company’s Internal Control System
• Amendment to the Guidelines Regarding Course and Commodity Bonus for the Company’s Futures Advisory Department
• Proposal for 2026 annual promotion of supervisor above managerial level
• Proposal for 2025 Annual Business Report and Individual and Consolidation Financial

87 -

Date

Summary of Important Agenda

Report • 2026 certified accountant independence assessment • 2026 Annual Quotation of Accountants' Auditing Fees • Determine the date, venue and agenda of the 2026 Annual General Meeting of Shareholders and accepting proposals from shareholders holding more than 1% of the shares

2026.3.27 18th meeting of the 10th Board of Director

• The Company's 2026 “Treating Customer Fairly Principle” Evaluation Form • Proposal for changing directors for the subsidiary, CSC Futures (HK) Ltd. • Proposal for termination of the lease of the Minsheng Office, entering into a new lease for the Tunnan Office, and application to competent authority for changing the Company's business address • Proposal for 2025 Employee and Director Remuneration Distribution • Proposal for 2025 Profit Distribution • Proposal for the 2025 share issuance through capitalization of retained earnings • Proposal for amendment to the agenda of the regular Shareholders' Meeting in 2026

(XII) The main content of the record or written statement of different opinions raised by directors or supervisors on the important resolutions approved by the Board of Directors in the most recent year to the issuance date of the annual report: None.

(XIII) The most recent annual education and training for managers, directors, and supervisors to participate in corporate governance

Name	Organizer	Course name	Date	Hours
Chairman Chia, Chung-Tao	Taiwan Corporate governance association	Information security governance and management in the context of geopolitics	2025.5.16	3
	Taipei Foundation of Finance	Corporate Governance- An Introduction to Virtual Currency Risk Management: A Strategic Guide for Directors and Supervisors	2025.9.19	3
Director Lee, Wen-Chu	Taiwan Corporate governance association	“Everything Is Hackable” – IoT Security Starts with You and Me!	2025.1.9	3
		Information security governance and management in the context of geopolitics	2025.5.16	3
	Taiwan Stock Exchange Corporation	Summit on Strengthening Taiwan’s Capital Market in 2025	2025.7.31	3
Director Liu, Ching-Tsun	Taiwan Securities Association	How to analyze important business information from financial statements	2025.8.13	3
		Legal Liability for and Case Analysis on the Protection of Business Secrets	2025.9.10	3
	Securities & Futures Institute of R.O.C.	Practical cases of insider trading and corresponding legal liabilities	2025.8.28	3
		Dual transformation for enhancing organizational resilience: AI governance and sustainability governance	2025.11.4	3
		Risk management and strategic analysis for corporate sustainability	2025.11.4	3
Director Lin, Tzu-Yi	Taiwan Corporate governance association	Practical analysis of sustainability report assurance	2025.5.20	3
	Financial Supervisory Commission	The 15th Taipei Corporate Governance Forum	2025.10.16	6
	Digital Governance Association	Forum on AI, Stablecoins and Real-World Assets (RWA): Toward a Trusted New Ecosystem for Digital Finance	2025.11.28	2
Independent Director Lin, Juh-Cheng	Taiwan Corporate governance association	How enterprises can optimize innovation and IP management and link it to sustainable governance in the face of the digital wave	2025.8.12	3
		Corporate Governance and Securities Regulation	2025.9.12	3

Title/Name	Organizer	Course name	Date	Hours
Head of Corporate Governance Chen, Chi-Hao Senior Executive Vice President	Taiwan Securities Association	Seminar on the Evaluation of the “Treating Customer Fairly Principle”	2025.2.19	3
		How to analyze important business information from financial statements	2025.8.13	3
		Finance and corporate governance: application and supervision of emerging technologies	2025.12.10	3
	Securities & Futures Institute of R.O.C.	2025 Prevention of Insider Trading Advocacy Conference	2025.5.16	3
		Fundamental competencies for sustainable finance certification	2025.9.11~2025.9.16	12
	Chinese National Futures Association	Analysis of Financial Consumer Protection Act and the Latest Trends – with Treating Customer Fairly Principle	2025.9.25	3
	Taipei Exchange (TPEx)	Promotion Symposium for the Sustainable Development of Securities Industry	2025.9.18	3
Chief Information Security Officer Ho, Cho-I Executive Vice President	Taiwan Stock Exchange Corporation	Information Security Coordination Meeting	2025.2.21	4
	Securities & Futures Institute of R.O.C.	Information Security Training	2025.5.21~2025.5.23	15
		Fundamental competencies for sustainable finance certification	2025.6.12~2025.6.17	12
	Taiwan Futures Exchange	Seminar on the Operational Standards for Security Control of Electronic Business	2025.8.4	4
	The Liberty Times and Chunghwa Telecom	2025 Forum on National Security and Economic Resilience	2025.9.10	8
	Taiwan Futures Exchange	Chief Information Security Officer Liaison Meeting in Securities and Futures Market	2025.10.17	4
Head of accounting Lin, Li-Chuan Executive Vice President	Accounting Research and Development Foundation	Continuing education for accounting supervisor	2025.7.17~2025.7.18	12
	Taiwan Securities Association	On-the-Job Training for Foreign Exchange Derivatives	2025.11.12~2025.11.13	6
	Chinese National Futures Association	On-the-Job Training for Futures Practitioners	2025.11.25~2025.11.26	6
Auditing Officer Lian, Jing-Lian Senior Vice President	Securities & Futures Institute of R.O.C.	Fundamental competencies for sustainable finance certification	2025.6.12~2025.6.17	12
	Accounting Research and Development Foundation	Corporate governance competencies for the internal audit function and financial statement risk assessment practices	2025.4.29	6
		Financial Statements and Financial Statements
	Taiwan Finance Association	On-the-Job Training for Finance and Financial Statements	2025.10.17	4
Associate Director	Taiwan Finance Association	On-the-Job Training for Finance and Financial Statements	2025.10.17	4
	Taiwan Finance Association	On-the-Job Training for Finance and Financial Statements	2025.10.17	4
	Taiwan Finance Association	On-the-Job Training for Finance and Financial Statements	2025.10.17	4

90 -

Title/Name	Organizer	Course name	Date	Hours
	Taiwan Securities Association	On-the-job training for anti-money laundering and counter-terrorism financing	2025.9.17~2025.99.18	6
		Regulations on entrusted trading of foreign securities and professional ethics standards	2025.10.31	3
	Securities Investment Trust & Consulting Association of the R.O.C.	Amendments to investment trust and investment consulting regulations in the past year	2025.1.20	2
		Futures and options regulations	2025.6.10	2
Title	Organizer	Course name	Head count	Hours Total
---	---	---	---	---
Other supervisors above manager level	Securities & Futures Institute of R.O.C.	Fundamental competencies for sustainable finance certification	24	288
		Securities Industry Legal Compliance Seminar	1	8
		Training course for the qualification of supervisors of anti-money laundering business units	2	24
	Chinese National Futures Association	Analysis of Financial Consumer Protection Act and the Latest Trends	11	33
		Seminar for Analysis on Anti-Money Laundering Prevention / Counter-Terrorism Financing Laws and Orders and Cases	2	6
	Taiwan Securities Association	On-the-job training for anti-money laundering and counter-terrorism financing	11	141
		Introduction to Financial Consumer Protection Laws as well as Case Study and Comments	1	3
		Risk management seminar	2	21
		Regulations on entrusted trading of foreign securities and professional ethics standards	3	9
		Training for the Supervisors of Labor Safety and Health Businesses	1	6
		Common disputes under labor laws	1	3
		Safety and health training for first responders	1	3
	Taiwan Stock Exchange Corporation	Continuous Professional Training Program for Compliance Personnel (including managers) of Securities and Futures Businesses	2	6
	Accounting Research and Development Foundation	Continuing training for the accounting supervisors of issuers, securities firms and stock exchanges	1	12
	Tech Island	AI Application Planner Training Program	1	12

IV. Information in public fees of the Certified Public Accountant Association

Unit: Expressed in Thousands of NT Dollars

Auditor’s firm	Name of CPA	CPA auditing period	Audit remuneration	Non-audit remuneration	Total	Remark
KPMG	Wu, Cheng-Yen	January 2025 to December 2025	1,870	840	2,710	Note
	Chen, Yi-Jen

Note: Non-audit fee services include tax services, confirmation on sustainability reports, application for issuance of invoices for taxes, payment of printing and courier fees, greenhouse gas statement assurance report, and review on staff salary sheet.

(I) When the company changes its accounting firm and the audit fees paid for the fiscal year in which such change took place are lower than those for the previous fiscal year: None.

(II) When the audit fees paid for the current fiscal year are lower than those for the previous fiscal year by 10 percent or more: None.

V. Changing of CPA: None.

VI. Where the company’s chairperson, president, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed: None.

VII. The status of changes that directors, supervisors and shareholders holding more than 10 percent of outstanding shares had transferred and pledged their shares:

(I) Shareholder Equity Transfer: please refer to the Market Observation Post System at: Single Company > Changes in Shareholdings/Issuance of Securities> Equity Transfer Information Inquiry > Post-Transaction Declaration Form for Insider Shareholding Changes. https://mops.twse.com.tw/mops/#/web/query6_1

(II) The Status of Changes in Share Pledge: None.

(III) Counterparty in any such transfer or pledge of equity interests is a related party: None.

91 -

VIII. Information disclosing the relationship between any of the Company's top ten shareholders

The interrelationship among the Company's Top Ten Shareholders

Base date: March 28, 2026; Unit: shares; %

Name	Shares held in own name		Shareholdings of spouse and underage children		Shares held in the names of others		Among the top 10 shareholders, there are related parties, spouse to each other, and kindred within the 2nd tier under the Civil Code, and the name and affiliation, if applicable		Remark
	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Name	Relation
Capital Securities Corp. Representative: Chou, Hsiu-Chen	138,619,711	55.46	0	0	0	0	-	-	-
Hontai Life Insurance Co., Ltd. Representative: Li, Chi-Hsien	5,562,688	2.23	0	0	0	0	-	-	-
Zengmao Investment Co., Ltd. Representative: Lee, Yi-Hui	4,362,927	1.75	0	0	0	0	-	-	-
Fengyang Investment Co., Ltd. Representative: Wang, Hui-Chin	2,301,037	0.92	0	0	0	0	-	-	-
GAINS Investment Corporation	1,713,210	0.69	0	0	0	0	-	-	-
Chaoyang Investment Co., Ltd. Representative: Chen, Kuan-Fu	1,500,000	0.60	0	0	0	0	-	-	-
HSBC Bank (Taiwan) Limited, in custody for Morgan Stanley & Co. International plc Investment Account	943,865	0.38	0	0	0	0	-	-	-

Name	Shares held in own name		Shareholdings of spouse and underage children		Shares held in the names of others		Among the top 10 shareholders, there are related parties, spouse to each other, and kindred within the 2nd tier under the Civil Code, and the name and affiliation, if applicable		Remark
	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Name	Relation
Standard Chartered International Commercial Bank Sales Department in custody for JP Morgan Securities Co., Ltd. Investment Account	888,255	0.36	0	0	0	0	-	-	-
TransGlobe Life Insurance Inc. Representative: Lin, Wen-Hui	800,058	0.32	0	0	0	0	-	-	-
HSBC Bank (Taiwan) Limited in custody for Merrill Lynch International Investment Account	762,765	0.31	0	0	0	0	-	-	-

93 -

IX. Shares Held by the Company, Directors, Managers and Companies Directly or Indirectly Control the Company, and the Comprehensive Shareholding Ratio Based on Combined Calculation

Comprehensive shareholding ratio
March 31, 2026; Unit: Thousands of shares; %

Reinvestment business	Invested by the Company		Investment held by directors, supervisors, managers, and directly or indirectly controlled enterprises		Aggregate investment
	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding	Quantity	Ratio of shareholding
CSC Futures (HK) Ltd.	220,000	100	0	0	220,000	100
Capital International Technology Corp.	5,000	100	0	0	5,000	100
True Partner Capital Technology (Chengdu) Co., Ltd (Note 2)	510	51	0	0	510	51
QIT Technology Co., Ltd.	4,000	100	0	0	4,000	100

Note 1: Long term investment in equity method by the Company.
Note 2: Dissolution and liquidation were approved by resolution of the Board of Directors on September 17, 2025.

94 -

Chapter III. Capital Overview

I. Capital and shares

(I) Share category and sources of share capital

Share category

Unit: Shares

Share category	Authorized capital			Remark
	Outstanding shares	Unissued shares	Total
Common shares	249,937,584	62,416	250,000,000	Listed stock

Sources of share capital

Year / month	Price of issue	Authorized capital		Paid-up capital		Remark
		Quantity	Amount	Quantity	Amount	Sources of share capital	Paid in properties other than cash	Other
1997.2	NT$10/share	20,000,000	200,000,000	20,000,000	200,000,000	Share capital initiation	None	-
1997.11	NT$10/share	120,000,000	1,200,000,000	45,000,000	450,000,000	Capital increase by cash 250,000,000	None	Note 1
2003.11	NT$10/share	120,000,000	1,200,000,000	61,500,000	615,000,000	Private Equity Offerings 165,000,000	None	Note 2
2009.3	NT$27.5/share	120,000,000	1,200,000,000	67,650,000	676,500,000	IPO share capital increase of 61,500,000	None	Note 3
2009.7	NT$10/share	120,000,000	1,200,000,000	75,226,800	752,268,000	Earning 75,768,000 was converted into share capital in 2008	None	Note 4
2010.6	NT$10/share	120,000,000	1,200,000,000	84,630,150	846,301,500	Earning 94,033,500 was converted into share capital in 2009	None	Note 5
2011.7	NT$10/share	120,000,000	1,200,000,000	92,246,863	922,468,630	Earning 76,167,130 was converted into share capital in 2010	None	Note 6
2013.8	NT$10/share	120,000,000	1,200,000,000	100,087,847	1,000,878,470	Earning 78,409,840 was converted into share capital in 2012	None	Note 7
2014.6	NT$23.3/share	120,000,000	1,200,000,000	119,997,847	1,199,978,470	NT$199,100,000 of increase in capital stock in 2014	None	Note 8
2015.7	NT$10/share	250,000,000	2,500,000,000	122,397,804	1,223,978,040	Earning 23,999,570 was converted into share capital in 2015	None	Note 9
2017.2	NT$31.38/share	250,000,000	2,500,000,000	160,397,804	1,603,978,040	NT$380,000,000 of increase in capital stock in 2016	None	Note 10
2018.8	NT$10/share	250,000,000	2,500,000,000	176,437,584	1,764,375,840	Capital surplus 160,397,800 converted into share capital in 2017	None	Note 11
2020.3	NT$34.4/share	250,000,000	2,500,000,000	210,437,584	2,104,375,840	NT$340,000,000 of increase in capital stock in 2019	None	Note 12
2025.3	NT$52.8/share	250,000,000	2,500,000,000	249,937,584	2,499,375,840	NT$395,000,000 of increase in capital stock in 2024	None	Note 13

Note: 1. Securities and Futures Bureau Official Letter (1997) Tai-Cai-Zheng No. 84102 on November 27, 1997.

Securities and Futures Bureau Official Letter Tai-Tsai-Cheng-Chi-Tzu No. 0920154585 on November 27, 2003.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 0980012451 on March 31, 2009.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 0980032927 on July 2, 2009.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 0990032848 on June 25, 2010.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 1000033210 on July 18, 2011.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 1020028556 on July 22, 2013.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 1030014783 on May 7, 2014.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 1040025089 on July 3, 2015.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 1050044467 on November 15, 2016.
Financial Supervisory Commission declaration takes effect on July 4, 2018.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 1090300222 came into effect on January 30, 2010.
Financial Supervisory Commission Official Letter Chin-Kuan-Cheng-Chi-Tzu No. 1130367295 came into effect on January 2, 2025.

(II) List of major shareholders:

Base date: March 28, 2026

| Names of major shareholders: | Shares
Number of
shares held
(share) | Ratio of
Shareholding
(%) |
| --- | --- | --- |
| Capital Securities Corp. | 138,619,711 | 55.46 |
| Hontai Life Insurance Co., Ltd. | 5,562,688 | 2.23 |
| Zengmao Investment Co., Ltd. | 4,362,927 | 1.75 |
| Fengyang Investment Co., Ltd. | 2,301,037 | 0.92 |
| GAINS Investment Corporation | 1,713,210 | 0.69 |
| Chaoyang Investment Co., Ltd. | 1,500,000 | 0.60 |
| HSBC Bank (Taiwan) Limited, in custody for Morgan Stanley & Co. International plc Investment Account | 943,865 | 0.38 |
| Standard Chartered International Commercial Bank Sales Department in custody for JP Morgan Securities Co., Ltd. Investment Account | 888,255 | 0.36 |
| TransGlobe Life Insurance Inc. | 800,058 | 0.32 |
| HSBC Bank (Taiwan) Limited in custody for Merrill Lynch International Investment Account | 762,765 | 0.31 |

(III) The dividend policy and fact of implementation thereof

The dividend policies stated in the Company's Articles of Association is to ensure long-term financial stability and business development while satisfying the needs for future growth, and thereby maximizing shareholders' interests. With regard to the Company's earnings in each fiscal year, after all taxes and dues have been paid and losses in previous years have been covered, the Company shall first set aside 10% as legal reserve, 20% as special reserve, and other reserve specified by relevant regulations. The Company should add the remaining balance to the undistributed earnings in previous years, and then distribute at least 10% of it as dividends. Earnings may be distributed in the form

of cash dividend or stock dividend, but the percentage of cash dividend for the year should not be less than 10% of the total dividend for the year. Dividend may not be distributed if an annual loss occurs, and the loss should be first made up if retained earnings are used for dividend distribution.

Proposed dividend distribution at the annual general meeting of shareholders: For profit distribution in 2025, the Company proposes to distribute cash dividends of NT$699,825,226 (NT$2.8 per share) and stock dividends of NT$167,458,190 (NT$0.67 per share) to shareholders.

(IV) The impact of issuance of bonus shares proposed in the present shareholders' meeting upon the Company's business performance and earning per share: Not applicable.

(V) Remuneration for Employee, Director and Supervisor

The percentages or ranges with respect to the remuneration of employee, director, and supervisor, as set forth in the Company's Articles of Association

According to Article 27 of the Articles of Association, employee compensation shall be distributed at 0.6% to 2% of the profit for the year, of which no less than 0.4% shall be allocated for entry-level employees. Directors' remuneration shall be distributed at a rate not exceeding 3% of the profit for the year where accumulated loss shall be made up first. The employees' compensation can be in the form of shares or cash. And such compensation may apply to the employees of the Company's parents or subsidiaries who meet certain specific requirements which shall be determined by the board of directors. Taking into account its operating conditions and industry characteristics, the scope of "entry-level employees" was resolved by the Board of Directors at its 10th meeting of the 10th term held on May 8, 2025, and will be regularly assessed for any necessary adjustments.

The accounting process for discrepancies between the actual distribution and the grounds to estimate the remuneration of employees, directors and supervisors in the current period and the grounds to calculate the number of shares distributed for employee compensation: The Company estimates employees' and directors' remuneration based on the pre-tax profit before distribution of such remuneration, multiplied by the distribution ratios stipulated in the Articles of Association. Any difference between the actual distribution amount and the estimated amount will be recognized as profit or loss in the following year.
The Company's cash remuneration distribution in 2024 were NT$ 17,357,712 to employees and NT$ 17,357,712 to directors, based on the remuneration distribution plan approved by the Board of Directors. The employee compensation and directors' remuneration in 2024 have no difference from the actual distribution amounts.
The Company's profit before deducting the remuneration of directors and employees in 2025 was NT$1,670,516,927. According to the Company's Articles of Association, the Board of Directors resolved to distribute NT$19,712,100 in employee compensation, representing 1.18% of the profit for the year, and NT$19,712,100 in directors' remuneration, representing 1.18% of the profit for the year, all paid in cash. The portion of entry-level employee compensation accounted for at least 0.4% of the current year's profit. The differences between the employee compensation and director remuneration
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resolved by the Board of Directors and the estimated amounts recognized in the expense year are as follows:

Unit: NT$

Item (2025)	Remuneration to employees	Remuneration to directors
Estimated Accrued Expense Amount (A)	19,866,396	19,866,396
Amount Resolved by the Board of Directors (B)	19,712,100	19,712,100
Difference (A-B)	154,296	154,296
Treatment of Difference	The difference will be adjusted in the profit or loss for 2026 as a change in accounting estimate.

(VI) Repurchase of the Company's shares during the latest financial year, up to the publication date of this annual report: None.

II. Any issuance corporate bonds, preferred shares, global depository receipts, and employee stock warrants, and new restricted employee shares, and the status of implementation: None.

III. Depositary Receipts and Employee Share Subscription Warrant Status of New Shares Issuance in Connection with Mergers and Acquisitions: None.

IV. Financing Plans and Execution Status: Please refer to Market Observation Post System at: Single Company → Changes in Shareholdings/Issuance of Securities → Fundraising → Fundraising Plan Execution

https://mopsov.twse.com.tw/mops/web/bfhtm_q2

Chapter IV. Operation Highlights

I. Business activities

(I) Scope of business operation

The main business scope of Capital Futures includes Taiwan futures clearing-settlement, Taiwan and foreign futures brokerage trading, security proprietary trading, option market maker trading, futures manager discretionary, securities introducing broker and futures advisory and project planning of derivative financial product research, etc. In addition to the brokerage trading and clearing business of Taiwan futures, Capital Futures provides brokerage trading of futures in global markets such as the United States, Singapore, Hong Kong, Europe, and Japan, and leads the industry in establishing transaction system to directly link the exchanges in various countries.

The main contents of the company's businesses: futures brokerage business, futures proprietary business, futures consulting business, futures management business, securities trading assistant, securities investment consulting business, securities dealers, and leveraged trader.
Proportion of main business income

Unit: NT$ Thousand

Year Item	2024		2025
	Amount	Ratio (%)	Amount	Ratio (%)
Brokerage fee revenue	1,926,445	73	1,933,825	67
Futures commission revenue	319,734	12	546,308	19
Net gains (losses) on derivative instruments	170,406	7	474,967	17
Advisory fee revenue	11,847	1	29,526	1
Other	210,944	7	(81,808)	-4
Total	2,639,376	100	2,902,818	100

Source: Consolidated financial statements audited and certified by CPA.

The current merchandise (services) items of the Company

Order acceptance:

Futures and options contracts in Taiwan Futures Exchange

Futures and options for US, Singapore, Japan, Hong Kong, and European stocks

Clearing on behalf of: Acting for proprietary clients and futures merchants to clear and deliver commodities on the TAIFEX

Proprietary trading:

Buy and sell domestic and foreign futures and options

Act as a market maker for futures and option commodities, creating market liquidity

Futures advisory:

Accept mandates to analyze and advise on futures trading related matters

Publish books on futures

Hold various futures seminars

Securities introducing broker business:

Soliciting securities trading business from securities investors

Acting on a securities firm's behalf to open accounts for securities

investors
Accepting securities trading orders from securities investors and delivering the orders to a securities firm for execution
Acting on a securities firm's behalf to notify securities investors to settle securities transactions

Futures managed business:
Accepting mandates from specified persons to conduct discretionary futures trading business
Other related business approved by the competent authority
Self-operated securities: Trading securities on its own in centralized trading markets and business premises

Leverage Transaction Merchants: Leverage contract trading business

New products (services) under development

The Company will research and develop new products for leveraged transaction independently to provide differentiated services to meet customer's demands
Actively promoting futures discretionary business and expanding assets under management
The Company's subsidiary in Hong Kong will develop global "futures + securities" integrated businesses by taking advantage of its self-built platforms

(II) Industrial profiles

The status quo and development of the industry

According Taiwan TAIFEX statistics, the participants in the domestic futures market in 2025 includes 14 futures brokerage businesses with a total of 29 business outlets; 11 concurrent futures brokerage business with a total of 87 business outlets; 42 futures introducing broker with a total of 714 business outlets. On the other hand, there are 11 futures proprietary merchants and 18 concurrent proprietary merchants; Lastly, there are 18 general clearing members, 8 individual clearing members, and 8 clearing banks.

Among the market participants, the Company is specialized in futures brokerage business, futures proprietary merchants, general clearing members, concurrent futures advisory, concurrent futures management, concurrent securities introducing broker, concurrent securities proprietary, and concurrent leverage transaction merchant, etc.

In recent years, the continued expansion of AI applications has driven the semiconductor supply chain investment cycle. Market participants have actively utilized futures and options for hedging, position adjustments, and strategic trading, sustaining the robust trading activity in the futures market. The trading volume of Taiwan futures market reached 382 million lots in 2025, with an average daily volume of 1.572 million lots, exceeding 300 million lots for six consecutive years. The overall participation rate of institutional investors has grown to 52.77%. The top five major products by trading volume are: Taiwan Index Options, Stock Futures (including ETF Futures), Small Taiwan Index Futures, Micro Taiwan Index Futures, and Taiwan Stock Futures. Night session trading volume accounted for 34.70% of the average daily volume of the entire market, reflecting the increasing extent to which market participants use night sessions for position adjustments and to capture international market

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developments. In 2025, the proportion of foreign investors remained as high as $32.58\%$ , indicating that the futures market provides a favorable trading environment that encourages active participation by foreign investors. Among the remaining participants, proprietary traders (including market makers) accounted for $19.45\%$ , natural persons accounted for $47.23\%$ , and other institutional investors accounted for $0.50\%$ . The participation proportions of these three groups have shown no significant change compared to the past. In recent years, the number of futures market accounts has shown a moderating trend. As of the end of 2025, the cumulative number of futures market accounts reached 2.12 million.

Trading structure of the participants in the futures and options trading market of Taiwan Futures Exchange

Unit: Thousand lots

Item	2021	2022	2023	2024	2025
Securities proprietary trading account	2,172	3,392	2,846	3,594	3,698
Futures proprietary trading account	150,547	147,611	138,153	142,186	144,829
Securities investment trust account	1,166	1,153	970	1,118	1,750
Foreign and Mainland Chinese investors	246,784	240,011	190,535	265,062	248,870
Futures managers and trust funds	488	631	354	137	100
Other institutional investors	4,589	3,400	4,057	4,992	3,811
Natural person	378,659	372,739	312,375	373,854	360,744

Source: TAIFEX, prepared by the Company

Account opening status and transaction structure of traders

Year	The cumulative number of accounts opened				The proportion of market trading volume (%)
	Number of accounts opened by natural persons	Ratio (%)	Number of accounts opened by legal persons	Ratio (%)	Natural person	Legal person
						Foreign investment	Total
2021	2,010,754	99.45	1.1087	0.55	48.27	31.46	51.73
2022	1,939,161	99.43	11,092	0.57	48.47	31.21	51.53
2023	1,958,340	99.43	11,172	0.57	48.11	29.35	51.89
2024	2,041,499	99.44	11,511	0.56	47.27	33.51	52.73
2025	2,109,966	99.44	11,898	0.56	47.23	32.58	52.77

Source: TAIFEX, prepared by the Company

2. Association among the upper-, mid- and lower streams

The social function of the futures industry is to provide stability to various major commodities, including stocks, foreign exchange, interest rates, agricultural products, precious metals, and energy; when the price fluctuates, the price risk is

fixed for the commodity supplier or demander to ensure their business operates in a stable environment where the price risk is transferred to the futures market. Thus, the futures market is a place to match hedging, speculators, and arbitrageurs. Through the system, the pricing mechanism can be smoothly operate, and it is an essential market for the stable development of the world's free economy. This is different from the close relations with industries upstream, downstream and at the same level of the manufacturing industry.

Product development trends

In recent years, the futures market has sustained robust momentum. Stock indices have kept reaching new highs, trading focus has shifted to mini-sized products, and micro contracts have grown rapidly. Short-term instruments have gained momentum, weekly expiry contracts absorb substantial trading volume. Stock market trading remains brisk, and demand for individual stock derivatives stays robust. At present, the main trading products can be divided into domestic futures, domestic options, and products in US, European, Japanese, Singapore and Hong Kong markets. Domestic futures are mainly index futures, and domestic options are mainly index futures options; US market's main products are foreign exchange futures, stock index futures, interest rate futures, gold futures, agricultural commodity futures and energy futures; European market's main products are stock index futures and commodity futures; Japanese market's main product is stock index futures; Singapore market's main products are A50 index, India Index and FTSE Taiwan index futures; Hong Kong market's main products are Hang Seng and H-share index, and Morgan Taiwan index futures. The futures trading volume in various domestic and foreign markets are as follows:

Commodities of TAIFEX
Unit: Thousand lots

Year	Futures	Options	Total
2021	194,453	197,749	392,202
2022	183,312	201,156	384,468
2023	148,126	176,519	324,645
2024	201,704	193,768	395,472
2025	209,941	171,961	381,901

Source: TAIFEX, prepared by the Company

Commodities in overseas futures exchange
Unit: Thousand lots

Year	US Stock	Singapore Stock	Hong Kong Stock	Japan Stock	Other Stock	Total
2021	22,202	11,781	1,366	758	1,160	37,267
2022	32,458	11,889	1,743	890	1,785	48,765
2023	26,690	10,292	1,876	1,213	1,796	41,867
2024	26,117	11,108	2,024	3,101	1,864	44,214
2025	29,830	9,075	1,526	3,330	2,125	45,885

Source: TAIFEX, Chinese National Futures Association, prepared by the Company

Competition status

The Company is a specialized futures merchant, and its main competitors are Yuanta Futures, President Futures, KGI Futures and SinoPac Futures, etc. The

paid-in capital, pre-tax net profit and pre-tax earnings per share of competitors for 2025 are shown in the table below:

Item No.	Futures Merchant	Number of shares issued (thousand shares)	Profit and loss before tax (NT$ thousand)	Earnings per share before tax (NT$)
1	Optiver Taiwan Futures (Proprietary)	80,000	977,255	12.22
2	Yuanta Futures	319,976	3,254,794	10.17
3	President Futures Corp.	77,120	649,575	8.42
4	Capital Futures Corp.	249,938	1,630,784	6.52
5	KGI Futures	179,763	1,056,102	5.87
6	SinoPac Futures	207,525	876,591	4.22
7	Cathay Futures Co., Ltd.	81,960	274,005	3.34
8	Hua Nan Futures	43,500	100,775	2.32
9	Fubon Futures Co., Ltd.	260,000	532,026	2.05
10	Concord Futures	81,500	136,010	1.67

Source: TAIFEX, prepared by the Company

(III) Technology & know-how and research & development in summary

1. Technologies and R&D:

The Company has a Research & Development Department established, with a number of professional researchers in financial field, which regularly provides the information in financial market and special research report, and develops commodities that combine stock and futures modules as leading in the industry, and which has successfully developed a balanced products with low risks and stable returns. And it also applies more effective investment strategies and risk management methods by utilizing data analysis, AI and other technologies to improve customers' trading experience and investment returns.

The Company is committed to promoting the development of financial technologies and smart transition, and improving service quality and customers' experience through innovation and R&D of technologies. Future R&D plans include foreign futures market analysis and establishment of trading strategies, risk management and strategy establishment of derivatives, and the construction of a complete research integration platform and cloud strategy platform.

The Company has about 30 to 40 R&D and FinTech persons in financial field, and it is expected to continue to invest NT$40 million to NT$80 million of R&D expenses in the future, accounting for 1% to 3% of the consolidated revenue.

Year	2023	2024	2025
Research and development expenses (NT$ thousand)	56,888	59,495	74,686

2. Intellectual property management:

The Company started digital transformation in 2020, and its sets 2021 as the first year of "digital growth". The Company promotes financial innovation actively to meet the various demands of customers. In recognition that intellectual property rights serve as the foundation for branding and innovation, the Company's IP management strategy, aligned with the needs of business development and digital transformation, pursues patents for innovative technologies in financial services and applies for trademark registration for its flagship product names to create

distinctiveness. The Company also regularly reviews trademark validity and files for renewals as needed. Establishing a strong moat of patents and trademarks through patent portfolio development and trademark acquisition not only can avoid any troubles to be caused by infringement on intellectual properties, but only can strengthen its advantages in market competition and provide customers with a better user experience, so as to help shareholders to obtain profits.

The Company regularly reports the implementation status of intellectual property management plans to the Board of Directors every year, and it has reported the implementation status of 2025 at the 16th meeting of the 10th Board of Directors on January 16, 2026. The Company strengthens corporate governance through management on intellectual properties.

As of 2025, the Company has obtained five patents, including “A System of a Financial Information Collection Using Instant Messaging Software”, “Utility Model Patent for Following-trend Channel Robot Trading System”, “Utility Model Patent for Smart Push System”, “Utility Model Patent for Trading Health Check System”, and “Intelligent Online Customer Service Device”. The Company has also registered 11 trademarks in total, including “Capital Nano Gold”, “Nano Gold”, “T-Sport”, and “Learning Island”.

The Company has formulated Trade Secret Protection Management Measures. To enhance the protection and management of trade secrets, each department shall prepare trade secret inventory sheets and adopt corresponding control measures for trade secret-related documents. The moral rights and property rights of works created by employees in their official duties shall belong to the Company. The Company regularly conducts security updates on information security facilities to reduce the risk of confidential information leakage. The Company specifies in contracts with information suppliers that intellectual property rights infringement is prohibited, and requires them to sign confidentiality statements, so as to implement the Company’s information confidentiality management.

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

Short-term development programs

(1) Integrated development strategy for securities, futures and leveraged business: Integrated account opening for securities, futures and leveraged brokerage businesses, as well as personnel qualification acquisition and business capability training for securities and leveraged business. In response to the growth of the U.S. stock market, the Company will build a comprehensive platform that integrates the different characteristics of US stock cross-border consignment, US stock CFDs, and US single-stock options, to meet the needs of different customer segments and provide them with more diverse options.

(2) Digital and AI development strategy: Take stock of the AI agent knowledge base across departments, establish process automation, significantly upgrade personnel capabilities and efficiency, achieve sustainability and succession goals, and create differentiated competitive advantages.

(3) Asset management business strategy: Based on the existing I-cash hedging strategy model, the Company will continue to develop new markets and expand its asset management product line.

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(4) Countermeasures for interest rate cuts: Leverage innovative services to target customer segments such as bond trading departments of life insurance companies, bills finance companies, banks, and securities firms. The investment research unit will increase the volume of research reports and strategies on interest rates and bonds to boost customers' bond trading volume.

Long-term development programs

(1) The Company will further improve trading platform and develop advanced functions for smart orders and algorithmic trading, which will further increase the leading edges of systems and create a market positioning of “The best smart trading system” in securities and futures industry.

(2) The Company’s subsidiary in Hong Kong will develop new markets in Southeast Asia by taking advantage of its self-built platforms.

(3) The Company will carefully provide employees with training to cultivate their new concepts, new technologies, and new market-related abilities, so that the Company can continue to transform upwards.

(4) The Company will strengthen the implementation of corporate governance, treating-customer-fairly, green digital finance, social services and other principles, and strive to safeguard shareholders' interests and achieve corporate sustainable development goals.

II. Overview of the market, production, and sales - an overview of the overall economic environment and trends in the industry

(I) Market analyses

Sales (distribution) regions of key products (services) and market share

Capital Futures is based in Taiwan and with a world vision. Including the Hong Kong subsidiary, Capital Futures is currently trading or clearing members of 12 domestic and foreign futures exchanges. Capital Futures leads the industry to build a trading system that directly connects with exchanges in various countries which can directly place orders to various futures exchanges in the form of DMA (Direct Market Access), with fast, stable, and real-time operation. In addition, the Company has established Hong Kong office as a global trading center, providing one-stop service of “Hong Kong account opening and global trading”. Capital Futures has changed the ecological rules of brokerage trading of foreign futures commodities for futures merchants in Taiwan and has established Capital Futures as an industry pioneer. The Company’s market share in the brokerage business of TAIFEX in 2025 was 9.45%, ranking third in the market. The Company holds a 20.51% market share in overseas futures trading volume (including proprietary trading), ranking as Taiwan’s second-largest futures merchant for overseas futures and options products.

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Commodities of TAIFEX

Unit: Thousand lots

Ranking	2023			2024			2025
	Futures Merchant	Brokerage volume	Market share %	Futures Merchant	Brokerage volume	Market share %	Futures Merchant	Brokerage volume	Market share %
1	Yuanta Futures	121,790	18.76	Yuanta Futures	161,555	20.43	KGI Futures	155,729	20.39
2	KGI Futures	119,400	18.39	KGI Futures	160,044	20.23	Yuanta Futures	140,721	18.42
3	Capital Futures Corp.	51,752	7.97	Capital Futures Corp.	69,234	8.75	Capital Futures Corp.	72,151	9.45
4	SinoPac Futures	40,003	6.16	SinoPac Futures	47,089	5.95	SinoPac Futures	43,956	5.75
5	Fubon Futures Co., Ltd.	26,897	4.14	Fubon Futures Co., Ltd.	32,743	4.14	Fubon Futures Co., Ltd.	31,803	4.16
6	President Futures Corp.	26,321	4.05	President Futures Corp.	30,643	3.87	President Futures Corp.	27,947	3.66
7	Concord Futures	17,605	2.71	Concord Futures	19,730	2.49	Cathay Futures Co., Ltd.	18,945	2.48
8	Masterlink Futures Corp.	16,017	2.47	Masterlink Futures Corp.	18,582	2.35	Concord Futures	17,452	2.28
9	Hua Nan Futures	14,273	2.20	Hua Nan Futures	16,233	2.05	Masterlink Futures Corp.	16,925	2.22
10	IBF Futures Co., Ltd.	11,139	1.72	Cathay Futures Co., Ltd.	14,767	1.87	Hua Nan Futures	15,915	2.08

Source: TAIFEX, prepared by the Company

Commodities in foreign futures exchange in 2025

Unit: Thousand lots

Ranking	Futures Merchant	CME G	SGX	HKEx	EUREX	Japan Stock	ICE + Others	Subtotal	Market share (%)
1	Yuanta Futures	6,022	3,663	336	150	648	226	11,045	24.07
2	Capital Futures Corp.	6,595	1,226	263	389	608	330	9,412	20.51
3	KGI Futures	3,536	1,258	359	72	430	714	6,369	13.88
4	SinoPac Futures	2,804	585	218	34	362	187	4,190	9.13
5	Fubon Futures Co., Ltd.	2,497	860	164	49	213	55	3,839	8.37
6	President Futures Corp.	2,085	581	83	36	275	103	3,164	6.89
7	Concord Futures	1,611	121	27	18	167	56	2,000	4.36
8	IBF Futures Co., Ltd.	742	253	16	7	177	87	1,282	2.79
9	Masterlink Futures Corp.	594	263	15	11	150	13	1,045	2.28
10	Cathay Futures Co., Ltd.	646	164	19	45	47	12	932	2.03

Source: TAIFEX, Chinese National Futures Association, prepared by the Company
Note: Statistics represent the total number of trading lots of Taiwan futures merchants

2. Future market supply and demand and growth:

The global inflation has been moderating but remains uncertain, and major central bank policies have shifted to the "early stage of the rate-cutting cycle". Geopolitical risks (US-China relations, regional conflicts) continue to affect

capital flows and market volatility. The global economy is experiencing "differentiated growth", with market turbulence becoming the norm. As global policy decoupling and geopolitical tensions intensify, "volatility" will become the new normal, which in turn boosts demand for futures and hedging products. The Company continues to introduce AI and intelligent investment assistance tools, provide comprehensive investment strategies (hedging, volatility management, cross-market allocation), and leverage professional services and product depth to help investors navigate global market uncertainties.

Competitive niche, advantages and disadvantages of development and countermeasures:

Advantages:

As TAIFEX continues to introduce new products and new systems to make the product types in Taiwan's futures market more complete, and the Company supplies an excellent professional advisory team and risk management capabilities to develop asset management business. Building upon the existing I-cash hedging strategy model, the Company further expands into new markets and broadens its asset management product portfolio.

The Company's trading platform has complete functions, strong innovation capabilities in options, and has membership in other major exchanges around the world, showing a strong operating strength.

Disadvantages:

The price-cutting competition in the market is still in trend, which affects the Company's profitability and as the financial environment continues to turn into a bear market, the profit from service fee and proprietary operations is unstable.

Countermeasures:

(1) Strengthen the promotion of foreign futures and create diversified sources of income; the Company has a relative market advantage, it can maintain its profitability.
(2) Improvement on service quality, including IT trading platform, customized services, market analysis and suggestions, can differentiated customers experience and services from other competitors to combat price competition.
(3) Through various marketing activities, it can improve investors' brand awareness of the Company, expand the market size, and effectively ease the pressure of price competition.

(II) Manufacturing process and key purposes of our principal products: Not applicable.
(III) Supply status of major raw materials: Not applicable.
(IV) List of major purchase and sale customers in the last two years: Not applicable.

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III. Human resources

Item		2024	2025	As of March 31, 2026
Number of employees employed		308	323	326
Average age		38.7	38.9	39.3
Average years of service		7.36	7.75	7.76
Education levels	Doctoral Degree	1.0%	0.9%	0.9%
	Master’s Degree	20.1%	20.7%	20.6%
	Bachelor’s Degree	75.0%	74.9%	75.2%
	Below high school	3.9%	3.4%	3.4%

Note: does not include work-study student

IV. Information on environmental protection expenditures: The Company is engaged in financial services business, and there is no environmental pollution issue.

V. Labor relations

The Company upholds the spirit that employees are the most important asset of the Company, and adopts fair and good HR policies, optimizes the welfare system, takes care of employees, and recruits outstanding talents through multiple channels and allows Capital employees to create value at work and achieve a balance between life and work. The formulation of the rules and regulations based on and abides by related labor laws and regulations to protect rights and interests of all employees. The Company employs, dismisses and transfers employees, pays them salaries and deals with other personnel-related matters in compliance with Article 5 of the Employment Service Act, and it does not discriminate anyone due to race, class, language, thought, religion, political party, place of origin, place of birth, gender, sexual orientation, age, marital status, appearance, facial features, or disability.

In order to evaluate and review the performance of all employees on a regular basis to facilitate future career planning, the Company has established the “Guideline for Employee Performance Evaluation”. All employees in service will be evaluated on a regular basis every year, regardless of gender and employee category (except for employees on probationary period), which is used as a mechanism to promote and reward outstanding employees, as well as to counsel and strengthen the training of under-performing employees, in order to facilitate the career development of all employees.

In addition, employee-employer meetings are held regularly in accordance with the regulations. The discussion includes employee engagement, operation plans and business overview, employee-employer relation coordination, employee-employer cooperation promotion, labor conditions, as well as planning on employee benefit, improving work efficiency, and employee-employer suggestions. The Company has set up an Employee Opinion Mailbox for all employees to provide opinions, strengthen the work rights, improve the operation process, improve on welfare, and discourage unethical conducts. All supervisors and colleagues who handle proposals from Employee Opinion Mailbox shall be obliged to keep the contents of the proposal and the colleagues who make the proposal confidential.

(1) List the Company’s fringe benefits for employees for higher education, training programs, retirement system and the enforcement the condition, accords reached by

and between the labor and management sides, facts regarding the efforts and measures to safeguard employees' interests:

Remuneration system: The Company has established a reasonable reward system and has set up a remuneration committee to evaluate the fairness and reasonableness of employee rewards. Employee compensation is linked to the Company's annual operating performance, consumer price index, industry benchmarks, and individual employee performance, serving as the basis for annual salary adjustments and the distribution of year-end and festival bonuses. The salaries of new employees are determined based on market situation, their academic qualifications and experience, as well as their positions and responsibilities, without any gender-based differences in starting pay. The salaries of general employees are approved by the President, while the salaries of senior managerial officers are approved by the Board of Directors after review by the Remuneration Committee.

The Company has also established "Guideline for Employee Performance Evaluation", "Guideline for Employee Year-End Bonus Distribution", "Guideline for Festival Bonuses Distribution" and "Guideline for Sales Bonus" for each business unit. Through annual performance evaluations (including financial and non-financial indicators), these guidelines are linked to variable compensation. In addition, it is specified in its Articles of Association that 0.6% to 2% of its profits in the current year shall be distributed as employee compensation (of which no less than 0.4% shall be allocated for entry-level employees), the Company's operating performance shall be reflected in employee compensation to encourage employees to work together and share the Company's operating results.

In 2025, the Company's earnings per share was 5.48 (NT$/share), the average employee welfare expense was 2,162 (NT$ thousand/person), and the average employee salary was 1,954 (NT$ thousand/person).

Number of full-time employees not in supervisory positions, average and median salaries of full-time employees not in supervisory positions, and the differences with the previous year:

Item	2025	2024	Difference
Head count (person)	260	252	8
Average salary (NT$ thousand)	1,701	1,577	124
Median salary (NT$ thousand)	1,256	1,207	49

Employee continuous education and training: The Company designs diversified training programs in accordance with different career stages and organizational development needs, and establishes a comprehensive training system covering newcomer orientation, professional skill training, managerial talent development, supervisor advancement training and financial seminars. Talents are cultivated through classroom teaching, digital learning, on-the-job training, external dispatched training, job rotation and project assignments.

For senior management personnel, the Company arranges courses on business management, financial product planning and marketing, legal compliance, money laundering prevention and anti-terrorism, data analysis and financial technology application. It also strengthens the succession cultivation system via on-hand learning approaches including job substitute, participation in important

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meeting, project promotion or work rotation.

In 2025, the Company’s total employee training expenses amounted to NT$3,439 thousand. The internal E-learning digital learning platform offered over 40 courses, totaling 13,029 hours. A total of 338 employees participated in external training programs, totaling 6,300 hours.

(1) Digital Learning Platform

The Company has established an E-learning platform to enable the timely update and dissemination of professional knowledge. The courses cover information security, the Personal Data Protection Act, labor safety and health education, new employee training, anti-money laundering and counter-terrorism financing training, and introduction to financial products, among others. A variety of training courses have been developed, utilizing various e-system tools to allow employees to learn and grow anytime, anywhere.

(2) External Education and Training

Regulatory External Training: To comply with legal requirements, employees must obtain relevant financial licenses and participate in pre-service and in-service training when performing their duties. Employees regularly participate in training courses offered by external professional institutions such as the Securities and Futures Institute, the Taiwan Securities Association, and the National Federation of Futures Industries to continuously enhance their financial expertise and keep pace with the times, thereby improving service quality.

Professional External Training: The Company has established employee education and training guidelines to encourage managers and employees to pursue external courses in fields related to their positions, thereby enhancing their career development competitiveness.

(3) Internal Education and Training

Management Associate Talent Development Program: Since 2007, the Company has established the “Capital Financial University”. The program targets outstanding potential talents nominated by various departments, providing training in cross-departmental organization, presentation skills, decision-making judgment, and business management leadership. The program aims to enhance individual work management capabilities and team spirit, serving as a cradle for cultivating future mid-level managers internally.

(4) Industry-Academia Collaboration Program

The Company actively promotes industry-academia collaboration by partnering with relevant university departments both domestically and internationally. A phased training mechanism is planned, with joint guidance from professional lecturers and departmental mentors, helping participants grasp market trends, marketing strategies, and communication skills at the early stage of their careers, thereby developing the professional capabilities and competitiveness required to enter the futures industry in advance. Outstanding performers will have the opportunity to be transferred to formal employees, realizing the outcomes of the industry-academia collaboration.

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Retirement system: In order to take care of the life of our employees after retirement, the Company has established the retirement regulations for our employees. In order to establish long-term harmonious labor-management relations, employees who have served for more than 10 years and have reached the age of 55, or have served for more than 20 years, can apply for early retirement in accordance with the provisions better than the Labor Standards Act. For employees covered by the Labor Standards Act, a special account is maintained at the Bank of Taiwan in the name of the Labor Retirement Reserve Supervisory Committee. Employees may apply for retirement benefits upon meeting the conditions set forth in the Company's retirement regulations. For employees covered by the Labor Pension Act, the Company contributes 6% of employees' monthly wages to the individual pension accounts established by the Bureau of Labor Insurance. For employees who voluntarily contribute to the pension fund, the Company deducts the amount from the employees' monthly wages and deposits it into the individual pension accounts established by the Bureau of Labor Insurance in accordance with the voluntary contribution rate. Please refer to page 63-64 of this annual report.
Employee benefits:

The Company has established an Employee Welfare Committee to provide employees with a wide range of welfare measures, such as wedding and funeral subsidies, hospitalization and surgery consolation payments, maternity subsidies, travel subsidies, birthday gifts, natural disaster consolation payments, and emergency relief. Various employee activities have also been organized, and sports clubs are subsidized, to enhance employee cohesion and sense of belonging. The Company has also implemented an Employee Assistance Program (EAP), providing a psychological consultation hotline and email channel, as well as physician health consultations and on-site medical services. On major holidays, the Company presents festive gifts to employees, and provides paid health check-up leave for employees with disabilities, as well as volunteer leave for employees. The Company is also committed to workplace diversity and equality, promoting equal pay for equal work between men and women, establishing lactation rooms, providing safety identification signs for pregnant women, and implementing family-friendly measures, including workplace adjustments during pregnancy, a "Mother Care Package," unpaid parental leave, paid parental leave, and family care leave, to assist employees in balancing work and family needs. Please refer to pages 61-69 of this annual report.

Employee insurance: In addition to providing labor insurance and national health insurance for employees in accordance with the law, the Company purchases group insurance such as life insurance, accident insurance, accidental medical treatment and occupational insurance for employees. Moreover, the Company strives for low-rate self-payment group insurance for employees and their families, including term life insurance, accident insurance, medical insurance and cancer prevention insurance for the insurance benefits of employees and their families.
The Company attaches importance to each employee's rights at work, and it is committed to maintaining the dignity of all employees. In order to safeguard staff's work-related rights and interests, the Company has formulated Work
111 -

Rules to clearly define employees' positions and working locations. However, the Company may second or temporarily dispatch employees due to business needs in accordance with the related provisions of the Labor Standards Act, and make full communication and coordination with employees before the secondment. As for employees' relevant rights and interests, the Company advocates human rights in the pre-employment training conducted for new employees. All employees must sign the "Code of Conduct for Capital Financial Group Employees" on the first day and follow the ethical principle to execute various businesses.

Employee rights protection measures: In addition to protecting the rights and interests of employees in accordance with the law, the Company has announced on the internal website for matters related to the rights and interests of all employees where it actively reminds employees to fight for rights and interests of individual employees.
Employee Engagement/Satisfaction Survey: Capital Financial Group conducts an "Employee Engagement/Satisfaction Survey" at least once a year. At the end of the year, the Human Resources Office distributes anonymous questionnaires to collect opinions from all employees in Taiwan. The survey covers eight categories: organizational atmosphere, leadership, management systems, job satisfaction, work environment, human rights protection, sustainable finance promotion, and organizational identification, with a total of 15 items, in order to understand employees' overall perceptions of the Company's systems, culture, and work environment, and to serve as a reference for optimizing management systems and promoting organizational sustainability.

The Company will continue to strengthen cross-departmental communication and collaboration mechanisms, improve organizational operational efficiency, and further translate sound interpersonal relationships into overall organizational performance.

(II) Losses incurred from labor disputes in the most recent year and up to the date of publication of the annual report: On March 12, 2026, following a labor inspection conducted by the Taipei City Labor Bureau, the Company was imposed a fine of NT$50,000 for violating Paragraph 1, Article 24 of the Labor Standards Act.

(III) Work environment and protection for the physical safety of workers: The Company attaches great importance to the physical safety and mental health of employees, and is committed to providing safety and protective equipment necessary for employee safety and health, conducting regular inspections of the working environment, organizing employee health examinations and health consultation services, and implementing general labor health education and training to protect employees' health and workplace safety. Please refer to pages 62-68 of this annual report.

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VI. ICT security management

(I) ICT security risk management framework

The Company regards ICT security as a core issue of corporate governance and sustainable operations, and has incorporated it into the Enterprise Risk Management (ERM) framework, establishing an information security governance system overseen by the Board of Directors.

Governance Framework and Organizational Operation: The Company has established an “Information Security Management Committee” responsible for information security strategy planning, risk management, and implementation supervision. The governance framework is as follows:
Convener: President
Executive secretary: Chief Information Security Officer (CISO)
Members: Relevant business heads of the Information and Audit departments
Dedicated Unit: Information Security Dedicated Unit (3 personnel)

The Information Security Dedicated Unit is responsible for policy implementation, technology deployment, risk control, and systematic audits. In 2025, the Information Security Management Review Committee convened 2 meetings, and the Information Security Advisory Group convened 21 meetings to regularly review information security risks and improvement progress.

Board of Directors Oversight Mechanism: The Company reports information security implementation status and material risks to the Board of Directors at least once a year. In addition to various information security tasks, the Company also conducts risk assessments of core operating systems and outsourced operations to enhance operational continuity and resilience. Annual implementation results are reviewed and improved by the Information Security Management Committee, and after being reported to the Board of Directors, a statement is issued in accordance with regulations.

A special report was made to the Board of Directors on March 4, 2026
- 2025 Annual Overall Information Security Implementation Status
- Core Operating System Risk Assessment Results
- Information Security Assessment Report on Outsourced Operations
- Progress in Addressing Material Risks

(II) ICT Security Policy and Risk Management Mechanism

ICT Security Policy: The Company has established the “Information Security Policy Statement” to ensure the confidentiality, integrity, and availability (CIA) of information assets. The policy applies to all operating units and information systems of the Company and is reviewed and revised annually. The core principles are as follows:
Regulatory Compliance and Customer Data Protection
Risk Identification and Continuous Improvement
Company-wide Information Security Responsibility
Operational Continuity and Resilience Enhancement
Risk Identification and Management Process: The Company follows the ISO 27001 management framework, adopts the PDCA cycle for continuous improvement, conducts annual ICT security risk assessments, and continuously
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strengthens the effectiveness of overall information security management through internal audits and third-party audit reviews.

Key Risk Management Measures and Achievements in 2025

Item	Implementation
Vulnerability scanning	Twice a year
Penetration testing	At least once a year
Remediation completion rate	100% (Completed by the end of 2025 or supplemented with compensatory measures)
User access rights review	Twice a year
Offsite backup drill	Twice a year
Social engineering drill	Twice
Critical system monitoring coverage rate	100%

Joint defense and intelligence cooperation: To enhance intelligence sharing and incident response capabilities, the Company has joined:
Financial Information Sharing and Analysis Center (F-ISAC)
Taiwan Computer Emergency Response Team/Coordination Center (TW-CERT) of the National Institute of Cyber Security
“Security and Future Computer Emergency Response Team (SF-CERT)”

In 2025, the Company participated in 2 information security intelligence sharing and emergency response drills.

(III) Specific information security management measures

To achieve the information security policy objectives, the Company has established a multi-layered defense mechanism and continuously conducts internal audits and external third-party audits annually.

Network Layer Protection (DDoS defense, firewall zone management)
Endpoint Layer Protection (EDR deployment, device control)
Identity Authentication Management (multi-factor authentication (MFA))
Data Protection Mechanisms (backup, encryption, access control)
Supply Chain Information Security Assessment (annual assessment of outsourced operations)

(IV) Resources allocated to ICT security management

Human resources: 3 dedicated information security personnel, accounting for 10% of the Information Department's workforce. In 2025, the Company engaged in 2 external technical support projects.
Budget allocation: Expenditure on core operating equipment and systems has shown a steady growth trend over the past three years.

2023	2024	2025
NT$160 million	NT$209 million	NT$233 million

Education and Training: Information security awareness briefings are conducted for all employees on a quarterly basis. In 2025, four online courses were completed, totaling 1,444 person-hours. Dedicated information security personnel complete 15 hours of professional training per year.

Information Security Insurance: The Company has continuously maintained information security insurance since 2024. In 2025, the coverage amount was US$1 million, covering data protection, information system error liability, and cybercrime risks.

(V) Third-Party Validation and Certification

The Company has obtained the following certifications:

ISO 27001 Information Security Management System Certification, Validity Period: February 18, 2024 to February 17, 2027

ISO 22301 Business Continuity Management Certification, Validity Period: November 26, 2023 to November 25, 2026

The above certifications remain valid through 2026, and the Company undergoes annual third-party surveillance audits. No material non-conformities were identified in the 2025 audit.

(VI) List the losses, possible impacts, and countermeasures from major ICT security incidents in the most recent year and up to the date of publication of the annual report. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided:

There was no loss to the Company caused by significant information security events in 2025.

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VII. Important contracts

Contract nature	Participants	Contract start and end dates	Main contents	Restrictive clauses
Succession contract	President Futures Co., Ltd.	1998.06.23~Now	Appointed the company to act on behalf of the other party which cannot perform its transaction-related obligations.	None
Retainer agreement of Futures Introducing Broker business	Capital Securities Corp.
Land Bank of Taiwan
Primasia Securities
Union Bank of Taiwan	2003.10.8~Now
2007.10.12~Now
2018.9.3~Now
2022.3.21~Now	Appointed those companies to be substitutes of the Company for futures introducing broker business.	None
Re-consigned contract	ADM Investor Services, Inc.
CSC Futures (HK) Ltd.
Nissan Securities Co., Ltd.
SG Securities AUS Pty Ltd.
NH Futures Ltd.
Phillip Nova Pte. Ltd.
StoneX Financial Pte. Ltd.
Marex Financial
Vision Financial markets LLC	1997.4.16~Now
2004.6.15~Now
2011.5.4~Now
2014.1.22~Now
2016.12.21~Now
2019.7.1~Now
2023.6.12~Now
2023.7.31~Now
2024.4.19~Now	Re-consigned brokerage business	None
Settlement Contract for Foreign Futures Products	Phillip Nova Pte. Ltd.
LMAX Global
CMC UK Markets Plc
SOCIETE GENERALE SA
IG Markets Limited	2013.12.6~Now
2020.3.10~Now
2021.8.31~Now
2023.10.12~Now
2024.12.24~Now	Settlement service for foreign futures products and leveraged transaction	None
Securities Introducing Broker commissioned contract	Capital Securities Corp.	2010.4.30~Now	Appointed the Company for Securities Introducing Broker service	None
Agreement of Appointment of Foreign Securities Trading Introducing Broker	Capital Securities Corp.	2024.4.30~Now	Appointed the Company for Foreign Securities Introducing Broker Service	None

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

I. Five-year financial analysis

Financial analysis - IFRS (consolidated)

| Year
(Note 1)
Analysis item (Note 4) | Five-year financial analysis | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | | 2021 | 2022 | 2023 | 2024 | 2025 |
| Financial structure (%) | Debt to assets ratio | 86.54 | 86.44 | 85.46 | 87.51 | 85.93 |
| | Ratio of long-term capital to property, plant and equipment | 13,327.36 | 16,004.78 | 5,388.99 | 5,675.98 | 6,849.32 |
| Solvency (%) | Current ratio | 114.39 | 114.65 | 115.05 | 112.68 | 114.75 |
| | Quick ratio | 114.37 | 114.56 | 115.00 | 112.65 | 114.73 |
| Profitability | Return on assets (%) | 1.05 | 1.62 | 2.03 | 2.14 | 1.96 |
| | Return on equity (%) | 7.73 | 11.97 | 14.49 | 15.98 | 14.64 |
| | Ratio of net profit before tax to the paid-in capital (%) (Note 8) | 28.51 | 45.49 | 60.68 | 69.53 | 65.23 |
| | Net profit margin (%) | 20.06 | 28.10 | 45.70 | 45.17 | 45.84 |
| | Earnings per share ($) | 2.33 | 3.72 | 4.80 | 5.66 | 5.48 |
| Cash flow | Cash flow ratio (%) | 1.10 | 0.72 | 3.39 | 0.00 | 3.49 |
| | Cash flow adequacy ratio (%) | 135.04 | 123.85 | 130.14 | 94.47 | 129.19 |
| | Cash re-investment ratio (%) | 0.00 | 0.00 | 10.74 | 0.00 | 14.29 |
| Special regulation rate | Shareholders’ equity to adjusted total liabilities (%) | 627 | 316 | 444 | 382 | 681 |
| | Shareholders’ equity to minimum paid-up capital (%) | 560.39 | 608.20 | 643.36 | 694.23 | 935.13 |
| | Adjusted net capital to guaranty margins on futures traders outstanding position (%) | 54.88 | 44.35 | 53.77 | 36.93 | 51.94 |
| Reasons for fluctuation over 20% in the financial ratios over the last two years | | | | | | |
| 1. The ratio of long-term capital to property, plant and equipment of current period increased as compared with the previous period mainly due to the increase in total shareholders’ equity of current period. | | | | | | |
| 2. The cash flow ratio, cash flow adequacy ratio and cash re-investment ratio of the current period increased compared with the previous period, which was mainly due to the increase of net cash flow from operating activities in the current period. | | | | | | |
| 3. The ratios of shareholders’ equity to adjusted total liabilities and shareholders’ equity to minimum paid-in capital increased compared with the previous period, mainly due to the growth in ordinary share capital and capital surplus in the current period. | | | | | | |
| 4. The increase in the ratio of current adjusted net capital to guaranty margins on futures traders outstanding position as compared with the previous period was mainly caused by the increase in the current adjusted net capital. | | | | | | |

The Company has prepared individual financial reports, so it also prepares the Company’s individual financial ratio analysis.
The Company has adopted the IFRS for more than 5 years, so the financial information using the Taiwanese Enterprise Accounting Standard will not be prepared separately.

Note 1: The financial data of the last 5 years having been duly testified and audited by the Certified Public Accountants.

Note 2: Earnings per share are calculated based on the weighted average number of shares outstanding. Due to the capital increase from earnings and capital reserves, it is calculated retrospectively based on the capital increase ratio.

Note 3: The following matters shall be considered when calculation the earnings per share:

(1) It is calculated based on the weighted average number of shares of common stock, not the number of shares outstanding at the end of the year.

(2) Where there is a capital increase by cash or treasury stock trading, the weighted average number of shares shall be calculated in consideration of its circulation period.

(3) Where there is a capital increase from conversion of earnings or capital surplus, retrospective adjustment shall be made according to the capital increase ratio when calculating the earnings per share for the previous year or half year regardless of the issuance period of the capital increase.

Note 4: The calculation of financial analysis is as follows:

Financial structure

(1) Debt to assets ratio = total liabilities / total assets

(2) Ratio of long-term capital to property, plant and equipment = (Total equities + non-current liabilities) / property, plant and equipment.

Solvency

(1) Current ratio = current assets / current liabilities.

(2) Quick ratio = (current assets - inventories - prepaid expense) / current liabilities.

Profitability

(1) Return on assets = (after tax net profit + interest expenses x (1 - tax rate)) / average asset balance.

(2) Return on equity = after tax net profit / total average equity.

(3) Ratio of net profit before tax to paid-in capital = net profit before tax / paid-in capital.

(4) Net profit ratio = net income / net sales

(5) Earnings per share = (profits or loss attributable to owners of the parent company - preferred stock dividend) / weighted average stock shares issued

Cash flow

(1) Cash flow ratio = net cash flow from operating activities / current liabilities.

(2) Cash flow adequacy ratio = net cash flow from operating activities within five years / (capital expenditure + inventory increase + cash dividend) within five years

(3) Cash re-investment ratio = (net cash flow from operating activity-cash dividend) / (gross property, plant, and equipment + long-term investment + other non-current assets + working capital)

Rates of special requirements

(1) Shareholders' Equity to Adjusted Total Liabilities = Shareholders' Equity / (total liabilities - futures traders' equity - reserve for trading losses - reserve for default losses).

(2) Shareholders' Equity to Minimum Paid-Up Capital = Shareholders' Equity / minimum paid-up capital.

(3) Adjusted Net Capital to Guaranty Margins on Futures Traders Outstanding Position = adjusted net capital / total guaranty margin on futures trader's outstanding positions.

Note 5: The calculation formula of earnings per share should be paid special attention to the following matters:

Based on the weighted average number of shares of common stock, not the number of issued shares at the end of the year.
Where there is a capital increase by cash or treasury stock trading, the weighted average number of shares shall be calculated in consideration of its circulation period.
Where there is a capital increase through capitalization of retained earnings or capital reserve, the calculation of the earnings per share for previous years and half-years, retrospective adjustments should be made according to the capital increase ratio, regardless of the issuance period of the capital increase.
118 -

If the preferred shares are non-convertible cumulative perpetual preferred stock, the dividends for the year (whether paid or not) shall be deducted from the net profit after tax or added to the net loss after tax. If the preferred stock is non-cumulative, under a net profit after tax, the preferred stock dividend shall be deducted from the net profit after tax; if it is a loss, there is no need to adjust it.

Note 6: Special attention shall be paid for cash flow analysis with the following matters:

Net cash flow from operating activities refers to the net cash inflow from operating activities in the cash flow statement.
Capital expenditure refers to the annual cash outflow for capital investment.
The increase in inventory is only included when the closing balance is greater than the opening balance. If the inventory decreases at the end of the year, it is calculated as zero.
Cash dividends include cash dividends on common shares and preferred shares.
Net value of property, plant and equipment is the total value of property, plant and equipment before accumulated depreciation.

Note 7: The issuer should classify various operating costs and operating expenses into fixed and variable costs according to their nature. If there are estimates or subjective judgments involved, special attention shall be paid to the rationality and maintain consistency.

Note 8: In the case of shares issued by a company with no par value or a par value other than NT$10 per share, the calculation of the paid-in capital shall be replaced by the equity attributable to owners of the parent.

119 -

Financial analysis - IFRS (Individual)

| Year (Note 1)
Analysis item (Note 4) | Five-year financial analysis | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | | 2021 | 2022 | 2023 | 2024 | 2025 |
| Financial structure (%) | Debt to assets ratio | 86.11 | 85.70 | 84.58 | 86.91 | 85.35 |
| | Ratio of long-term capital to property, plant and equipment | 17,170.79 | 18,964.60 | 5,583.26 | 6,069.44 | 7,113.76 |
| Solvency (%) | Current ratio | 112.87 | 113.30 | 113.97 | 111.60 | 114.21 |
| | Quick ratio | 112.86 | 113.22 | 113.96 | 111.58 | 114.21 |
| Profitability | Return on assets (%) | 1.08 | 1.69 | 2.15 | 2.25 | 2.04 |
| | Return on equity (%) | 7.77 | 12.00 | 14.48 | 15.97 | 14.65 |
| | Ratio of net profit before tax to the paid-in capital (%) (Note 8) | 28.54 | 45.51 | 60.62 | 69.46 | 65.25 |
| | Net profit (%) | 22.26 | 30.22 | 50.43 | 49.35 | 54.52 |
| | Earnings per share (NT$) | 2.33 | 3.72 | 4.80 | 5.66 | 5.48 |
| Cash flow | Cash flow ratio (%) | 1.86 | 0.36 | 3.51 | 0.00 | 3.32 |
| | Cash flow adequacy ratio (%) | 139.81 | 123.56 | 131.27 | 100.73 | 129.46 |
| | Cash re-investment ratio (%) | 1.83 | 0.00 | 10.19 | 0.00 | 12.43 |
| Special regulation rate | Shareholders’ equity to adjusted total liabilities (%) | 627 | 316 | 444 | 382 | 681 |
| | Shareholders’ equity to minimum paid-up capital (%) | 560.39 | 608.20 | 643.36 | 694.23 | 935.13 |
| | Adjusted net capital to guaranty margins on futures traders outstanding position (%) | 54.88 | 44.35 | 53.77 | 36.93 | 51.94 |
| Reasons for fluctuation over 20% in the financial ratios over the last two years
1. The cash flow ratio, cash flow adequacy ratio and cash re-investment ratio of the current period increased compared with the previous period, which was mainly due to the increase of net cash flow from operating activities in the current period.
2. The ratios of shareholders’ equity to adjusted total liabilities and shareholders’ equity to minimum paid-in capital increased compared with the previous period, mainly due to the growth in ordinary share capital and capital surplus in the current period.
3. The increase in the ratio of current adjusted net capital to guaranty margins on futures traders outstanding position as compared with the previous period was mainly caused by the increase in the current adjusted net capital. | | | | | | |

Note 1: The financial data of the last 5 years having been duly testified and audited by the Certified Public Accountants.
Note 2: Earnings per share are calculated based on the weighted average number of shares outstanding. Due to the capital increase from earnings and capital reserves, it is calculated retrospectively based on the capital increase ratio.
Note 3: The following matters shall be considered when calculation the earnings per share:
(1) It is calculated based on the weighted average number of shares of common stock, not the number of shares outstanding at the end of the year.
(2) Where there is a capital increase by cash or treasury stock trading, the weighted average number of shares shall be calculated in consideration of its circulation period.
(3) Where there is a capital increase from conversion of earnings or capital surplus, retrospective adjustment shall be made according to the capital increase ratio when calculating the earnings per share for the previous year or half year regardless of the issuance period of the capital increase.

Note 4: The calculation of financial analysis is as follows:

Financial structure
(1) Debt to assets ratio = total liabilities / total assets
(2) Ratio of long-term capital to property, plant and equipment = (Total equities + non-current liabilities) / property, plant and equipment.
Solvency
(1) Current ratio = current assets / current liabilities.
(2) Quick ratio = (current assets - inventories - prepaid expense) / current liabilities.
Profitability
(1) Return on assets = (after tax net profit + interest expenses x (1- tax rate)) / average asset balance.
(2) Return on equity = after tax net profit / total average equity.
(3) Ratio of net profit before tax to paid-in capital = net profit before tax / paid-in capital.
(4) Net profit ratio = net income / net sales
(5) Earnings per share = (profits or loss attributable to owners of the parent company - preferred stock dividend) / weighted average stock shares issued
Cash flow
(1) Cash flow ratio = net cash flow from operating activities / current liabilities.
(2) Cash flow adequacy ratio = net cash flow from operating activities within five years / (capital expenditure + inventory increase + cash dividend) within five years
(3) Cash re-investment ratio = (net cash flow from operating activity-cash dividend) / (gross property, plant, and equipment + long-term investment + other non-current assets + working capital)
Rates of special requirements
(1) Shareholders' Equity to Adjusted Total Liabilities = Shareholders' Equity / (total liabilities - futures traders' equity - reserve for trading losses - reserve for default losses).
(2) Shareholders' Equity to Minimum Paid-Up Capital = Shareholders' Equity / minimum paid-up capital.
(3) Adjusted Net Capital to Guaranty Margins on Futures Traders Outstanding Position = adjusted net capital / total guaranty margin on futures trader's outstanding positions.

Note 5: The calculation formula of earnings per share should be paid special attention to the following matters:

Based on the weighted average number of shares of common stock, not the number of issued shares at the end of the year.
Where there is a capital increase by cash or treasury stock trading, the weighted average number of shares shall be calculated in consideration of its circulation period.
Where there is a capital increase through capitalization of retained earnings or capital reserve, the calculation of the earnings per share for previous years and half-years, retrospective adjustments should be made according to the capital increase ratio, regardless of the issuance period of the capital increase.
If the preferred shares are non-convertible cumulative perpetual preferred stock, the dividends for the year (whether paid or not) shall be deducted from the net profit after tax or added to the net loss after tax. If the preferred stock is non-cumulative, under a net profit after tax, the preferred stock dividend shall be deducted from the net profit after tax; if it is a loss, there is no need to adjust it.

Note 6: Special attention shall be paid for cash flow analysis with the following matters:

Net cash flow from operating activities refers to the net cash inflow from operating activities in the cash flow statement.
Capital expenditure refers to the annual cash outflow for capital investment.
The increase in inventory is only included when the closing balance is greater than the opening balance. If the inventory decreases at the end of the year, it is calculated as zero.
Cash dividends include cash dividends on common shares and preferred shares.
Net value of property, plant and equipment is the total value of property, plant and equipment before accumulated depreciation.
121 -

122 -

II. Analysis of financial status

Comparative analysis of financial status in the last two years (individual)

Unit: NT$ Thousand

Year Item	2025	2024	Difference
		Total	Total	Amount	%
Current assets		69,326,563	57,276,491	12,050,072	21.04
Property and equipment		146,960	128,442	18,518	14.42
Other non-current assets		1,679,452	1,714,414	(34,962)	(2.04)
Current liabilities	Before dividend distribution	60,698,596	51,323,632	9,374,964	18.27
	After dividend distribution	61,398,421	52,030,955	9,367,466	18.00
Non-Current liabilities		27,723	55,074	(27,351)	(49.66)
Share Capital		2,499,376	2,104,376	395,000	18.77
Retained earnings	Before dividend distribution	4,506,165	3,885,793	620,372	15.97
	After dividend distribution	3,638,882	3,178,470	627,870	19.75
Total assets		71,152,975	59,119,347	12,033,628	20.35
Total liabilities	Before dividend distribution	60,726,319	51,378,706	9,347,613	18.19
	After dividend distribution	61,426,144	52,086,029	9,340,115	17.93
Total equity	Before dividend distribution	10,426,656	7,740,641	2,686,015	34.70
	After dividend distribution	9,726,831	7,033,318	2,693,513	48.25

Analysis of the change in the increase or decrease ratio over 20%:
1. Current assets: The current increase was mainly due to the increase in cash and cash equivalents.
2. Non-current liabilities: The current decrease was mainly due to the decrease in lease liabilities - non-current.
3. Total assets: The current decrease was mainly due to the increase in cash and cash equivalents.
4. Total shareholders' equity: The current increase was mainly due to the increase in share capital and capital surplus.

III. Analysis of operation results

Comparative analysis of financial performance in the last two years (individual)

Unit: NT$ Thousand

| Year
Item | 2025 | 2024 | Change amount | Change percentage |
| --- | --- | --- | --- | --- |
| | Total | Total | | (%) |
| Income | 2,441,276 | 2,412,994 | 28,282 | 1.17 |
| Operating expenses | 2,505,129 | 2,308,219 | 196,910 | 8.53 |
| Net operating income | (63,853) | 104,775 | (168,628) | (160.94) |
| Non-operating income and expenses | 1,694,637 | 1,356,864 | 337,773 | 24.89 |
| Net income before tax | 1,630,784 | 1,461,639 | 169,145 | 11.57 |
| Income tax | 299,873 | 270,712 | 29,161 | 10.77 |
| Net income | 1,330,911 | 1,190,927 | 139,984 | 11.75 |

Analysis of the change in the increase or decrease ratio over 20%:
1. Operating profit: The decrease compared with the previous period was mainly caused by increased net losses from securities lending and bond short covering under reverse repurchase agreements.
2. Non-operating income and expenses: The increase compared with the previous period was mainly attributable to higher interest income and net gains (losses) on disposal of investments.

IV. Cash flow

(I) Liquidity analyses for the past 2 years

Item	2025	2024	Increase (decrease) ratio
Cash flow ratio (%)	3.32	0	100
Cash flow adequacy ratio (%)	129.46	100.73	28.52
Cash re-investment ratio (%)	12.43	0	100

Analysis of the change in the increase or decrease ratio over 20%:
1. Cash flow ratio, cash flow adequacy ratio and cash re-investment ratio: these ratios of the current period increased compared with the previous period, which was mainly due to the increase of net cash flow from operating activities in the current period.

(II) Analyses on the cash liquidity in one year ahead

Unit: NT$ Thousand

Opening cash balance (1)	Net cash flow anticipated from operating activities in year round (2)	Anticipated year-round cash outflow (3)	Expected cash surplus (deficit) (1)+(2)-(3)	Financing of cash deficits
				Investment plans	Financing plans
7,009,148	1,628,981	690,373	7,947,756	-	-

V. The impact of the significant capital expenditure over the past year upon the financial performance: None.

VI. The outward investment policies over the past year. The key reasons leading to the profit or loss, the corrective plans and the investment plan in one year ahead

Reinvestment policy: The Company’s re-investment plan is handled in accordance with the internal control system and the “Procedures for the Acquisition or Disposal of Asset”. The management of reinvestment businesses is to regularly obtain the management and financial statements of each reinvestment business and understand the operation status of the reinvestment businesses.
The reasons leading to the reinvestment profit or loss and the improvement plan:
The current loss of CSC Futures (HK) Ltd. was due to the significant increase in the operating costs. It will develop customers and new products in the future.
During the current period, Capital International Technology Corp. recorded operating losses as its subsidiary QIT Technology Co., Ltd. (formerly Capital Futures Technology (Shanghai) Co., Ltd.) was adversely affected by economic conditions. QIT Technology Co., Ltd. has initiated organizational restructuring planning. Upon completion of such adjustments, it is expected to provide a more diversified product portfolio to the market and boost the Company’s profit growth accordingly.
Investment plans in the coming fiscal year: None.

VII. Risk analysis and assessment in the most recent year and up to the date of publication of the annual report

The Company formulates risk management policies against the various risks faced by it in operating (such as market, credit, liquidity, operation, legal, model, reputation, climate and other risks related to the operating of futures merchants, etc.) under the condition of ensuring the effectiveness of risk management to effectively manage its business risks. The contents of the risk management policies duly reflect the company’s business strategies and objectives, risk appetite and the characteristics of the risks it faces. And the Company establishes management procedures that are followed at all levels as the stipulations and basis for the company's daily implementation of risk management. And the Board of Directors, supervisors and employees at all levels participate and promote to justify the Company’s risky asset allocation and maximize shareholder returns within the risk scope tolerance. The appropriateness of the risk management policy is regularly reviewed and adjusted in a timely manner to meet the changes in the subjective and objective environment.

The Board of Directors of the Company regularly listens to reports from the Risk Management Department, Internal Auditing Department, and Finance Department, and it will weigh various financial and business-related regulations that affect capital allocation to allocate the Company’s assets within a reasonable scope of risks tolerance. The Company considers the effect of various risks aggregated and determines the countermeasures in accordance with the changes in the subjective and objective environment.

The management personnel and employees of each business unit of the Company jointly execute various business and trading activities. The unit supervisors are responsible for all risk management of the subordinate units, and are responsible for analyzing, managing and reporting risk matters. The supervisors are also responsible for front-end and back-end risk management to comply with laws and regulations and the Company’s risk management policies and formulate contingency plans and take countermeasures when necessary. They shall pass relevant information to managerial officers to ensure that risk management mechanisms and procedures are effectively implemented.

Senior management is responsible for implementing risk monitoring, management and emergency response measures. A functional risk-based audit method is adopted to conduct a comprehensive overall risk assessment on the overall business and operation levels to ensure

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all risks of the Company are under effective control. The risk management information system can conduct real-time intraday monitoring and after-hour summary and analysis, detect, and inspect the use of risk limits of each business unit, evaluate risk exposure and concentration, and submit relevant risk management reports in a timely and complete manner.

The Internal Auditing Department is responsible for the compliance of the Company's regulations and internal control systems and operational risk management, and is responsible for supervising and ensuring the effective implementation of the Company's operational risk management procedures. The Company follows the internal control system established by the competent authority, employs experienced personnel to audit for various business activities, and cooperates with the competent authority, TAIFEX and the Chinese National Futures Association to amend relevant regulations or adjust based on business requirement and adjust various operational risk management procedures.

The Compliance & Legal Department is responsible for the review of the Company's legal compliance and transaction contract documents, and providing professional advice on legal matters involved in various businesses, including the legality of product contracts and transaction activities, and implement the legal compliance work with the business units and Internal Auditing Department.

(I) The impact incurred by change in interest rate, exchange rate, inflation upon the Company's profit and/or loss and the future countermeasures:

The impact incurred by change in interest rate upon the Company and the future countermeasures

(1) The Company has a sound financial structure and stable cash flow, and it does not borrow funds to the external, so there is no risk of changes in the interest rates for borrowing. In 2025, as impacted by interest rate hike, there was an increase in the Company's interest income, and its net interest income increased from NT$1,277,919 thousand to NT$1,435,571 thousand, with an increase of 12.34%.

(2) In addition to continuously monitoring the interest rates and fiscal policies of central banks, the Company keeps close contact with banking institutions to keep abreast of financial market trends.

The impact incurred by change in exchange rate upon the Company and the future countermeasures

The Company's main source of income is the transaction service fee for accepting orders from trading customers, among which the service fee income denominated in foreign currency is recognized as income at a fixed time in accordance with customer margin management regulations. In 2025, the Company suffered NT$27,569 thousand of exchange losses due to significant exchange rate fluctuations in current year as compared with previous year.

The impact incurred by inflation upon the Company and the future countermeasures

In 2025, as U.S. inflation gradually declined at a mild pace, the market expects the Federal Reserve to enter a cautious phase with "slow and modest interest rate cuts" in 2026. Thanks to stable economic performance, trade conditions and labor participation in Taiwan, inflation has not yet exerted any adverse impact on the Company.

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(II) High-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses generated thereby; and response measures to be taken in the future: The Company has set relevant standards and guidelines for engaging in high-risk investments, highly leveraged investments and derivatives transactions, and all transactions are handled in accordance with the above-mentioned standards and guidelines; regarding loans to other parties, endorsements, guarantees, the Company complies with the laws and regulations and there is no need to formulate rules and measures, and no related incidents have occurred.

(III) Future R&D Plans and Expected R&D Expenditures: The Company actively and continuously develops new financial products related to domestic and foreign futures and options that are high-margin, high-value-added, and capable of providing integrated solutions. Please refer to page 103 of this annual report.

(IV) The impact upon the company’s financial operations of important policy and legal developments at home and abroad, and the measures the company plans to adopt in response: There are a R&D Department and a Compliance & Legal Department, which are responsible for researching information and legal changes in important domestic and foreign markets, and providing measures to respond to important domestic and foreign policy and legal changes.

(V) The impact on the Company’s financial operations of developments in science and technology (including cyber security risk) and industry, and the measures the Company plans to adopt in response: the securities and futures market is developing rapidly, and the financial market has been moving in line with the international market, so each business must possess international perspectives. In addition, financial products are becoming more and more diversified, and information technology is also changing with each passing day. With the ever-changing international financial market, the Company’s primary focus is to build international information technology capabilities and a global transaction electronic platform. The Company is committed to pursue excellence, innovation, and leadership, provide financial services with high added value that exceed customer expectations, and serve as a long-term growth partner with the customers, please refer to pages 113-115 of this annual report.

(VI) The impact of changes in the Company’s image upon its crisis management, and the measures the Company plans to adopt in response: The Company is a leader in financial expertise and profitability in the futures industry where its professional and competitive image has been well recognized by the market. In the future, it will continue to give priority to “the public interests” and continue to serve the everyone. If corporate crisis is caused by any change in corporate image, the Company also has Compliance & Legal Department and Internal Auditing Department to provide professional consultation on possible threats.

(VII) The expected benefits and potential risks of any merger or acquisition, and measures to be adopted in response: The Company has not planned mergers and acquisitions in recent years, but if there is a plan in the future, it must commit to a prudent evaluation and consider whether the merger can bring benefits and synergistic effect to the Company to ensure the shareholders’ rights and interests.

(VIII) The expected benefits and potential risks of any plant expansion, and measures to be adopted in response: The Company has no plans to expand plants or branches in the recent year.

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(IX) The risks associated with any consolidation of sales or purchasing operations, and measures to be adopted in response: The Company actively expands various domestic and foreign brokerage businesses, and continues to strengthen the integration with its subsidiaries to diversify the risks that may be caused by business/profit concentration

(X) Effect upon and risk to the Company if a director, supervisor, or shareholder holding greater than a 10 percent stake in the Company has been transferred or has otherwise changed hands, and measures to be adopted in response: The Company's directors, supervisors or major shareholders holding more than 10% of the shares commit to the sustainable and long-term operation since the establishment of the Company, and the Company regularly reports changes to the shareholding of the directors, supervisors, and shareholders with more than 10% shares in accordance with the Securities and Exchange Act. There were no changes in shareholdings among the major shareholders holding more than 10% of the shares, and there was no substantial transfer or replacement. The largest shareholder of the Company is Capital Securities, which holds about 55.46% of the shares. Since its establishment, there has not been a large amount of equity transfer, and it has participated in every cash capital increase where the equity shares are stable.

(XI) Effect upon and risk to the Company associated with any change in governance personnel or top management, and measures to be adopted in response: The Company commits to the business philosophy of sustainable development. While planning the business strategy, the Company commits to the vision and beliefs, and considers the possible impact on society and the natural environment. "Public interests" are our priority, and we hope to work together to contribute to the capital market.

(XII) Litigious and non-litigious matters. List major litigious, non-litigious or administrative disputes that: (1) involve the Company and/or its director, supervisor, the president, any person with actual responsibility for the Company, any major shareholder holding a stake of greater than 10 percent, and/or any company or companies controlled by the Company; and (2) have been concluded by means of a final and unappealable judgment, or are still under litigation. Where such a dispute could materially affect shareholders' equity or the prices of the Company's securities, the annual report shall disclose the facts of the dispute, amount of money at stake in the dispute, the date of litigation commencement, the main parties to the dispute, and the status of the dispute as of the date of publication of the annual report:

The significant litigious and non-litigious matters involving the Company and its corporate director and major shareholder with over 10% shareholding, Capital Securities Corp. (hereinafter referred to as "CSC"), as of March 31, 2026:

Action	Party to an action	Dispute	Current situation	Litigation start date	Litigation amount (Unit: NT$)
Criminal	Plaintiff: Capital Securities Corp. Defendant: Mr./Ms/Mrs. Chiang	When Yu ○-Ping, the customer of CSC Xisong Branch, checked trading documents, CSC found that, Chiang ○-Ping, the salesperson of the branch, forged documents for the Company's PGN structured products that did not exist, and got properties from Yu ○-Ping and other 15 customers of CSC Xisong Branch by cheat.	This case involves prosecution for forging and fraud and is now investigated by the Taipei District Prosecutors' Office.	2018.12.18

Action	Party to an action	Dispute	Current situation	Litigation start date	Litigation amount (Unit: NT$)
Civil	Plaintiff: Mr./Ms/Mrs. Fan Defendant: Capital Securities Corp. Mr./Ms/Mrs. Chan	Chan ○-Ling, the salesperson of CSC Wanhua Branch, privately solicited investment for the purpose of fraud, causing damage to the customer Fan ○-Yen, therefore she filed a lawsuit, requesting the Company and the resigned employee Chan ○-Ling to assume the joint and several ability for making compensation to her in the amount of NT$2,798,313.	This case is now pending in the Taiwan Taipei District Court.	2019.4.8	2,798,313 (NT$)
Civil	Plaintiff: Mr./Ms/Mrs. Chang Defendant: Capital Securities Corp. Mr./Ms/Mrs. Hua	The plaintiff claims that a broker at the Neihu Branch of Capital Securities Corp. instigated a client to obtain loans under unrestricted fund usage arrangements, infringing the plaintiff's rights to stocks held in nominee registration. This resulted in damages of NT$22,793,091 to the plaintiff, who subsequently filed a lawsuit requesting joint and several liability of NT$11,396,545 from Capital Securities Corp. and the relevant broker.	This case is now pending in the Shilin District Court.	2025.7.3	11,396,545 (NT$)
Civil	Plaintiff: Mr./Ms/Mrs. Tung Defendant: Capital Securities Corp.	Mr./Ms/Mrs. Tung, a retired employee of Capital Securities Corp. Kaohsiung Branch, claims that the Company underpaid his/her retirement benefits. He/She therefore filed a lawsuit with the Kaohsiung District Court, claiming payment of outstanding retirement benefits amounting to NT$1,990,089.	This case is now pending in the Kaohsiung District Court.	2025.10.8	1,990,089 (NT$)

(XIII) Other important risks and countermeasures: adjusted net capital of futures merchants

The annual risk-adjusted average daily net capital was $53.72\%$ in 2025, with the highest of $69.82\%$ and the lowest of $32.90\%$ . ANC refers to the adjusted net capital of a futures merchant, which is a concept of dynamic capital and the main indicator for measuring the overall operating risks of the futures merchant in a real time. Futures merchants are required to maintain "adequate" Adjusted Net Capital (ANC). The term "adequate" means that ANC shall not be excessively high to cause idle funds, nor excessively low to impose regulatory burdens and elevated risk pressures. The main purpose of ANC is to reflect the risk-bearing ability of a futures merchant and promote its sound operating system, and pay attention to maintenance of capital, while pursuing profits, to maintain investor's confidence and protect their rights and interests. To strengthen operating capital and maintain adequate Adjusted Net Capital (ANC), the Company conducted a cash capital increase in 2025.

The current regulations on ANC are as follows:

If ANC ratio is less than $30\%$ , no new transaction may be added by leveraged traders, except for hedging of transactions.

If ANC ratio is less than 20%, it shall be immediately reported to FSC and its designated institutions.
If ANC ratio is less than 15%, orders from futures traders shall stop to be accepted, except for the original transaction, and an improvement plan shall be submitted to FSC and its designated institutions.

VIII. Other Important Matters: None.

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Chapter VI. Special Disclosures

I. Summary of affiliated companies: For the consolidated business report, consolidated financial statements and affiliation report of affiliated companies in the most recent year, please refer to Market Observation Post System at: Single Company > Electronic Files Download > Three Forms of Affiliated Companies section https://mopsov.twse.com.tw/mops/web/t57sb01_q10

II. Where the company has carried out a private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None.

III. Other Necessary Supplement: None.

IV. Disclosures of Events Which May Have a Significant Influence on Stockholders’ Equity or Share Price, in Compliance with Subparagraph 2, Paragraph 2 in Article 36 of the Securities and Exchange Act of the R.O.C.: None.

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Capital Futures Corp.

Chairman Chia, Chung-Tao

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CFC Annual Report 2025

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ANNUAL REPORT

Capital Futures Corp.

Table of contents

II. 2025 income and profit analysis (Consolidated)

III. Operating plans and development strategies for the future

II. Remuneration paid to directors, supervisors, presidents, and executive vice presidents in the most recent year

Achievement Status of Reduction Targets:

IV. Information in public fees of the Certified Public Accountant Association

VIII. Information disclosing the relationship between any of the Company's top ten shareholders

Chapter IV. Operation Highlights

I. Business activities

(I) Scope of business operation

2. Association among the upper-, mid- and lower streams

(III) Technology & know-how and research & development in summary

1. Technologies and R&D:

2. Intellectual property management:

Commodities of TAIFEX

Commodities in foreign futures exchange in 2025

2. Future market supply and demand and growth:

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

I. Five-year financial analysis

II. Analysis of financial status

VII. Risk analysis and assessment in the most recent year and up to the date of publication of the annual report

Chapter VI. Special Disclosures

Capital Futures Corp.

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CFC — Annual Report 2025

52499_rns_2026-05-26_01c2254e-a95f-4ede-9e17-12c4e78d1f9c.pdf

ANNUAL REPORT

Capital Futures Corp.

Table of contents

II. 2025 income and profit analysis (Consolidated)

III. Operating plans and development strategies for the future

II. Remuneration paid to directors, supervisors, presidents, and executive vice presidents in the most recent year

Achievement Status of Reduction Targets:

IV. Information in public fees of the Certified Public Accountant Association

VIII. Information disclosing the relationship between any of the Company's top ten shareholders

Chapter IV. Operation Highlights

I. Business activities

(I) Scope of business operation

2. Association among the upper-, mid- and lower streams

(III) Technology & know-how and research & development in summary

1. Technologies and R&D:

2. Intellectual property management:

Commodities of TAIFEX

Commodities in foreign futures exchange in 2025

2. Future market supply and demand and growth:

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

I. Five-year financial analysis

II. Analysis of financial status

VII. Risk analysis and assessment in the most recent year and up to the date of publication of the annual report

Chapter VI. Special Disclosures

Capital Futures Corp.

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CFC Annual Report 2025