Stock Code: 8064

Control Technology Co., Ltd.

2025 Annual Report (Translation)

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.

This annual report can be found on the following websites :

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

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

Date: March 31, 2026

Name, Title and Contact Details of Company’s Spokesperson and Deputy Spokesperson :

Spokesperson
Deputy Spokesperson

Name : Tsan-Jen Chen
Name : Zih-Huei Wang
Title : General Manager
Title : Director of Finance and Accounting Division
Telephone Number : (06)505-1188
Telephone Number : (06)505-1188
E-mail address : [email protected]
E-mail address : [email protected]

Address and Telephone Numbers of Company’s Headquarters, Branches and Factories :

Headquarter : No.9, Nan-Ke 6th Rd., Tainan Science-Based Industrial Park, Tainan City, Taiwan
Telephone Number : (06)505-1188
Fax Number : (06)505-1195
Branch : None
Factory : No.9, Nan-Ke 6th Rd., Tainan Science-Based Industrial Park, Tainan City, Taiwan
Telephone Number : (06)505-1188

Name, Address, Website and Telephone Number of the Share Registrar :

Name: Capital Securities Corporation Stock Agency Department
Address : B2, No.97, Section 2, Dunhua South Road, Taipei City, Taiwan
Telephone Number : (02)2702-3999
Website : https://www.capital.com.tw

Names, Accounting Firm, Address, Website and Telephone Number of Independent Auditors in the Most Recent Year :

Name: Xiu-wen Chen and Jui-Hsuan Hsu
CPA Firm: Deloitte & Touche
Address : 3F., No. 88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan
Telephone Number : (07)530-1888
Website : http://www.deloitte.com.tw

Overseas Securities Exchange : None
Corporate Website : http://www.contrel.com.tw

Control Technology Co., Ltd.
Table of Contents

I. Letter to Shareholders ... 1
1.1 2025 business report ... 1
1.2 2026 business plan ... 3
1.3 Future development strategies ... 5
1.4 Impact of the competitive environment, regulatory environment, and macroeconomic environment ... 5

II. Corporate Governance Report ... 6
2.1 Information of Directors, Supervisors, General Manager, Vice Presidents, Assistant Vice Presidents, Officers of Departments and Branches ... 6
2.2 Remuneration of Directors, Supervisors, GENERAL MANAGER and Vice President ... 19
2.3 Corporate Governance ... 24
2.4 CPA Service Fees: ... 68
2.5 Change of CPA: ... 69
2.6 The name and title of any Company Chairman, General Manager, and Officers of Finance or Accounting who have held positions at the appointed CPA firm or its affiliates in the past year shall be disclosed along with their tenure period at said CPA firm or affiliates: ... 69
2.7 Transfers and Pledges of Stock Equity by Directors, Managers, and Shareholders Holding over 10% of the Company’s Shares in the Most Recent Year and as of the Date of Publication of the Annual Report ... 70
2.8 Relationships of Related Party, Spouse, Kinships within the Second Degree among the Top Ten Shareholders: ... 71
2.9 The number of shares of One Enterprise held by the Company, the Directors, Supervisors, Officers of the Company and the Enterprise directly or indirectly controlled by the Company ... 72

III. Capital Raising ... 73
3.1 Capital and Shares ... 73
3.2 Corporate Bond ... 77
3.3 Preferred Stocks ... 77
3.4 Global Depository Receipts ... 77
3.5 Employee Stock Options ... 77
3.6 Status of employee restricted stock awards ... 77
3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions ... 77
3.8 Financing Plans and Implementation ... 77

IV. Operational Highlights ... 78
4.1 Business Activities ... 78
4.2 Markets, production, and marketing ... 94
4.3 Number of Employees in Service in the Last Two Years and up to the Publication Date of This Annual Report ... 108
4.4 Environmental Protection Expenditure ... 108
4.5 Labor Relations ... 108
4.6 Cybersecurity management ... 111
4.7 Important Contracts ... 115

V. Review of Financial Conditions, Financial Performance, and Risk Management ... 116
5.1 Analysis of Financial Status ... 116
5.2 Analysis of Financial Status ... 117
5.3 Analysis of Cash Flow ... 118
5.4 Major Capital Expenditure Items ... 118
5.5 Investment Policy in the Last Year, Main Causes for Profits or Losses, Improvement Plans and Investment Plans for the Coming Year ... 119

5.6 Analysis of Risk Management...120
5.7 Other Significant Matters...125

VI. Special Disclosures...126

6.1 Summary of Affiliated Companies...126
6.2 Private Placement Securities in the Most Recent Years:...126
6.3 Other Supplementary Notes:...126

VII. Other Issues...127

7.1 Events Regulated in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act That Have Impacts on Shareholders’ Equity or the Price of Securities during the Current Fiscal Year up to the Date of Publication of the Annual Report:...127

I. Letter to Shareholders

Greetings to all of our valued shareholders,

We sincerely appreciate the long-term support and trust of our shareholders, which have enabled Contrel Technology to continue growing and thriving. Looking back at 2025, the global economic landscape remained volatile. Against a backdrop of cooling inflation but diverging growth across major economies, uncertainties surrounding U.S. trade and tariff policies caused fluctuations in global supply chain configurations and corporate investment decisions. Meanwhile, escalating geopolitical risks and major-power competition continued to pose challenges to international markets. On the other hand, the rapid expansion of AI applications drove growth in demand for AI servers and high-performance computing hardware. Taiwan's strategic position in the semiconductor and critical equipment supply chains became even more prominent, injecting momentum into industrial development. In response to external uncertainties and shifts in industrial structure, Contrel Technology has continued to strengthen internal management and operational resilience. We have enhanced product quality and service value, solidified existing client relationships, and proactively invested in the R&D of new processes and key technologies. These efforts aim to seize growth opportunities and ensure the Company's steady progress in a highly competitive market.

Looking ahead to 2026, the continuous expansion of global AI and High-Performance Computing will drive sustained demand for advanced packaging. Taiwan's advanced packaging capacity and equipment investment are expected to remain the core drivers of growth momentum. Leveraging our profound technical foundation in laser technology and vacuum coating, Contrel Technology continues to focus on key applications within semiconductor packaging processes. Through our self-developed process solutions and integration capabilities, we assist customers in enhancing mass production efficiency, quality stability, and yield rates, while progressively expanding into new markets and applications. Meanwhile, Micro LED remains a highly promising field with strong innovative momentum across various sectors. Contrel Technology will deepen its laser bonding technology and advance the deployment of critical equipment for mass transfer and mass repair. With our expertise in high-precision tiling, laser cutting, and automated production line integration, we are positioned to rapidly deploy mass production solutions as market conditions mature, injecting new vitality into future operations. Guided by a commitment to continuous innovation and powered by our proprietary core technologies, Contrel Technology is proactively developing equipment to meet the future demands of advanced industries while entering new business sectors with a pragmatic strategy. With the continued support of our shareholders, Contrel Technology will strive for excellence and share the fruits of our diligent operations with all shareholders, customers, and employees.

1.1 2025 business report

1.1.1 Achievements of business plan

Our company specializes in precision equipment, serving industries such as semiconductor packaging and testing, Mini and Micro LED display manufacturing, LCD panel production, and logistics centers. Our product range includes full-factory automation hardware and software systems, high-precision laser micro-processing applications, AI & AOI intelligent inspection and repair systems, and vacuum coating process equipment.

In the year 2025, the aforementioned equipment contributed to consolidated net operating revenue of NT$2,870,684 thousand, representing a 10.25% growth over the previous year. The net profit attributable to the parent company to the parent company was NT$224,775 thousand, a 72.24% growth over the previous year, with basic earnings per share of NT$1.36.

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Consolidated

Unit: In Thousands of New Taiwan Dollars

Item	2025	2024	YoY %
Net operating revenue	2,870,684	2,603,886	10.25
Gross profit	810,094	685,312	18.21
Profit from operations	276,824	30,863	796.94
Profit after income tax	266,821	173,907	53.43
Net profit attributable to the parent company	224,775	130,501	72.24
Gross profit margin (%)	28.22	26.32
Operating profit margin (%)	9.64	1.19
Net margin (%)	9.29	6.68
EPS (NT$)	1.36	0.79

1.1.2 Budget implementation : The Company does not disclose the 2025 financial budgets to the public.

1.1.3 Overview on Financial Income and Profitability analysis

Item		2025	2024
Financial Structure	Liabilities to assets ratio (%)	38.14	42.86
	Long-term capital to property, plant and equipment ratio (%)	1,969.09	1,993.58
Profitability	ROA (%)	4.84	3.11
	ROE (%)	7.88	5.36
	Profit before tax to capital stock (%)	20.37	12.10
	Net profit rate (%)	9.29	6.68
	EPS (NT$)	1.36	0.79

1.1.4 Status on research and development :

We are committed to the improvement of our in-house technology and the development of products, and we are also working on the development of specific core technologies.

As Micro LED technology enters a critical mass production phase in 2025, Control Technology has proactively addressed market demands for high-yield and high-efficiency display technologies. By continuously driving innovation in processing equipment, we have launched the "G4.5 Dual Head Mass Transfer and Repair Equipment" alongside the "G4.5 Single-Point Repair System," comprehensively enhancing the precision and stability of the mass production process. This series integrates "Laser Mass Bonding and Repair Modules" with "Single-Point Repair Modules," enabling simultaneous large-scale transfer-bonding and precision repair of Micro LEDs. This significantly boosts production efficiency, achieving a final product yield of 99.999%

In the semiconductor packaging sector, Control Technology has continuously deepened its core advantages in precision laser and automation integration since the introduction of EMC Trimming technology. In 2025, we introduced EMC Trimming

equipment for 300mm and 600mm Panel-Level Packaging (PLP). By leveraging the large-area advantages of panel-level substrates, we have significantly increased production capacity and optimized material utilization, meeting the market's urgent demand for high throughput and cost-efficiency.

Simultaneously, we continue to refine our third-generation (G3) 300mm Wafer-Level equipment. Through the integration of multi-wavelength laser technology, we have achieved a breakthrough in the clean removal of EMC and other composite materials. Furthermore, identifying the evolving needs of advanced packaging customers, Contrel Technology has utilized its extensive laser expertise to develop an integrated Laser Debond system. Beyond our original laser beam shaping technology, this system incorporates another core competency: vacuum plasma cleaning.

By harnessing our deep strengths in automated system integration, we have integrated standardized EFEM modules into our equipment. Combined with our proprietary high-precision auto-edge-finding and center-alignment technology, we have significantly optimized processing accuracy. This not only fundamentally resolves challenges related to substrate edge flash and flatness but also ensures the reliability of subsequent manufacturing processes.

In the R&D of AI and AOI, Contrel Technology achieved a critical technological leap in 2025. For the RDL Fluorescence Inspection System, we implemented hardware specification enhancements and optimized the optomechanical structural design, significantly improving image contrast. This allows for the detection of ultra-fine defects, reaching an industry-leading inspection precision of 2μm / 2μm in Line/Space (L/S).

Furthermore, Contrel Technology introduced an innovative multi-angle and multipattern light source system into our BGA AOI equipment, enabling simultaneous Brightfield and Dark-field optical inspection. This comprehensive upgrade enhances foreign material identification efficiency and quality stability. Through the deep integration of AI algorithms with high-end optical inspection technology, the Company has not only constructed a rigorous quality monitoring system but also effectively supported the miniaturization and high-density trends in advanced packaging processes.

As mentioned above, the 2025 R&D expenses amounted to NT$176,213 thousand, accounting for 6.14% of our operating revenue

1.2 2026 business plan

1.2.1 Business guidelines

We continue to deepen the application of laser technology in advanced semiconductor packaging equipment. By integrating our years of expertise in automation and system integration, we provide comprehensive solutions ranging from standalone units to full production lines, addressing the entire spectrum of customer needs from pilot runs to mass production. This effectively enhances production efficiency, quality yields, and equipment utilization, thereby increasing the value of our customers' products and fostering deeper strategic partnerships.
With innovation in vacuum coating technology at our core, and leveraging our long-term cultivation and extensive track record in the LED industry, the Company is proactively expanding into the vacuum coating and etching equipment market for Panel-Level

Packaging. We aim to provide highly stable and cost-effective processing equipment to meet the rigorous demands of semiconductor packaging customers.

Continue to advance Micro LED mass transfer and mass repair technologies to maintain an industry-leading advantage, helping key customers swiftly move into mass production. At the same time, leverage our technical expertise in the Micro LED field to capture opportunities in related process equipment and full-factory automation, deepening our cooperation network with display customers.
We will strengthen the price competitiveness of LCD-related equipment and accessory retrofits. Simultaneously, we aim to capture opportunities arising from our panel customers' "Dual-Axis Transformation" as they expand into new markets. This includes equipment retrofits or new production line planning for applications such as automotive displays, flat-panel satellite antennas, and Fan-out Panel-Level Packaging (FOPLP/RDL PLP). Focusing on technological innovation, deeply cultivate the semiconductor packaging vacuum coating market, providing stable and cost-effective vacuum coating equipment to meet the needs of semiconductor packaging customers.
Strategic planning of ESG issues in advance to formulate Contrel Technology's responsibilities for the environment, society and corporate governance and achieve objectives in sustainable management:

A. Incorporate the energy-saving components and standby control technology into the planning phase of machinery and equipment.

B. Help clients introduce production planning meeting the philosophy of ESG, such as equipment activation and modification.

C. Reinforce energy conservation and carbon emissions reduction of factories through energy management systems developed in-house and produce ESG sustainability reports.

1.2.2 Expected sales and its bases

We will leverage our past sales performance to grasp the development trends of various industries in the fiscal year 2026 and capitalize on opportunities arising from increased client capital expenditures, continuously expanding our sources of operating revenue.

1.2.3 Important manufacturing and sales policies

Manufacturing strategy:

(1) Digitize the management system to keep track of the progress of projects at all times.

(2) Improve the manufacturing efficiency and keep the lead time under control to fully meet clients' requirements.

(3) Modular design of parts to increase the proportion of shared materials, accelerate the design and manufacturing timeline, and reduce production costs.

(4) Reinforce the quality control of design and assembly, strictly implement the QC policy, and shorten the installation and maintenance time.

Sales and product policy:

(1) Continuously improve quality and service to retain existing clients.

(2) Cater to market demand with high-efficiency and affordable products, and actively expand new clientele.

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(3) We have established the Zhubei R&D Center and invested in experimental laboratory equipment to assist advanced semiconductor packaging customers with sample prototyping and testing.

(4) Strengthen the LCD display equipment sector, continuously improve product capabilities, and expand into new display markets such as Micro LED, automotive, and wearable displays.

(5) Expand the accumulated core technologies into the semiconductor and advanced packaging equipment markets.

(6) Develop high-end equipment and other services through core technologies integrating laser, optics, vacuum, and electromechanical systems.

(7) Develop products in line with ESG values, such as energy-saving and low carbon emission equipment, and provide equipment repurposing and modification services to reduce waste and improve sustainability.

(8) Keep track of the trends of industry development and expand to diverse industries.

1.3 Future development strategies

In response to changes in the equipment market in the future, the Company has formulated the following development strategies:

Invest in the research and development of key product equipment for semiconductor packaging and next-generation display industries.
Leverage government resources and establish long-term partnerships with academic institutions to actively develop new process technologies.
Work closely with customers to build mutually beneficial partnerships.
Strengthen talent cultivation and improve in-house technical capabilities.
Apply core technology of equipment to improve the manufacturing capacity of equipment in other industries.

1.4 Impact of the competitive environment, regulatory environment, and macroeconomic environment

In the past, Control Technology focused on TFT-LCD and LED industry equipment and grew alongside these sectors. Over the years, Control has accumulated more than a decade of practical experience in core technologies such as automation equipment, optics, laser processing applications, and vacuum coating processes. This experience has enabled us to successfully develop inspection, repair, automation, and vacuum process equipment for various industries. In response to the ever-changing industry landscape, our management team and all employees will adjust our pace as needed, embracing future challenges with caution and stability, aiming to create maximum profits for our shareholders!

Finally, we wish all our valued shareholders

Prosperity and good luck.

Contrel Technology Co., Ltd.

Chairperson: Jui-Hsiung Yen

II. Corporate Governance Report

2.1 Information of Directors, Supervisors, General Manager, Vice Presidents, Assistant Vice Presidents, Officers of Departments and Branches

2.1.1 Information of Directors

Information of Directors

2026.03.30

Title	Nationality or Place of Registration	Name	Gender Age	Date Elected	Term	Date First Elected	Shareholding when Elected		Current Shareholding		Current Shareholding of Spouse & Minor Children		Shareholding In the Name of Others		Experience and Education	Current positions at Tongtai or other companies	Other Officers, Directors or Supervisors who are the Spouse or a Relative Within Two Degrees of Kinship
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Chairman	R.O.C.	Jui Hsiu Investment Co., Ltd.	-	2023.06.20	3	2023.06.20	4,091,949	2.48	4,091,949	2.21	-	-	-	-	N/A	N/A	N/A	N/A	N/A
	R.O.C.	Representative : Jui-Hsiung Yen	M 69	2023.06.20	3	1999.05.31	-	0.55	907,169	0.49	161,967	0.09	-	-	General Manager, Tongtai Machine & Tool Co., Ltd. B.S. in Mechanical Engineering, National Cheng Kung University	Note1	Director	Hui-Jen Yen	Brother
Director	R.O.C.	San Shin Co., Ltd.	-	2023.06.20	3	2005.05.06	12,723,750	7.72	12,723,750	6.88	-	-	-	-	N/A	N/A	N/A	N/A	N/A
	R.O.C.	Representative : Hwa-Chou Yen	M 76	2023.06.20	3	2005.05.06	-	0.23	377,373	0.20	333,344	0.18	-	-	Chairman, San Shin Co., Ltd. - SYSCO Machinery Corporation B.S. in Clivi Engineering, Chung Yuan Christian University	Note 2	Chairman Director	Jui-Hsiung Yen	Brother
	R.O.C.	Representative : Cheng Yen	M 44	2023.06.20	3	2017.06.22	-	0.09	154,478	0.08	-	-	-	-	General Manager, San Shin Co., Ltd. M.S. in Industrial Engineering, Columbia University	Note 3	Director	Hwa-Chou Yen	Father
Director	R.O.C.	Meta-Souaoia Investment Ltd.	-	2023.06.20	3	2017.06.22	2,991,327	1.82	2,991,327	1.62	-	-	-	-	N/A	N/A	N/A	N/A	N/A
	R.O.C.	Representative : Su-Hsien Lin	M 56	2023.06.20	3	2003.06.12	-	1.01	1,659,909	0.90	506,052	0.27	-	-	Independent Director, C Sun Mfg., Ltd. B.S. in Department of Chemical and Materials Engineering, Tamkang University	Note 4	N/A	N/A	N/A
Director	R.O.C.	Se-Cheng-Lu Investment Ltd.	-	2023.06.20	3	2014.06.24	2,021,685	1.23	2,041,685	1.10	-	-	-	-	N/A	N/A	N/A	N/A	N/A
	R.O.C.	Representative : Lu Yen	F 43	2023.06.20	3	2014.06.24	-	-	5,000	0.00	-	-	-	-	Vice President, Tongtai Machine & Tool Co., Ltd. M.S. in Integrated Marketing, Northwestern University	Note5	Director	Hwa-Chou Yen	Father
Director	R.O.C.	Tongtai Machine & Tool Co., Ltd.	-	2023.06.20	3	2017.06.22	6,849,178	4.16	6,849,178	3.71	-	-	-	-	N/A	N/A	N/A	N/A	N/A
	R.O.C.	Representative : Jun-Liang Kuo	M 63	2023.06.20	3	2021.02.18	-	-	-	-	-	-	-	-	Chairman, Hong Mai Co., Ltd. The George Washington University computer science MS	Note 6	N/A	N/A	N/A
Director	R.O.C.	Tsan Ying Investment Co., Ltd.	-	2023.06.20	3	2020.06.09	1,803,572	1.09	1,803,572	0.98	-	-	-	-	N/A	N/A	N/A	N/A	N/A
	R.O.C.	Representative : Weichung Ooi	M 46	2023.06.20	3	2020.06.11	-	0.17	18,000	0.01	-	-	-	-	Supervisor, F.S.E corporation Ph.D. Physics and Astronomy, University of California Los Angeles	Note 7	N/A	N/A	N/A

Title	Nationality or Place of Registration	Name	Gender Age	Date Elected	Term	Date First Elected	Shareholding when Elected		Current Shareholding		Current Shareholding of Spouse & Minor Children		Shareholding In the Name of Others		Experience and Education	Current positions at Tongtai or other companies	Other Officers, Directors or Supervisors who are the Spouse or a Relative Within Two Degrees of Kinship
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Director	R.O.C.	Tsan-Jen Chen	M 56	2023.06.20	3	2011.6.22	516,101	0.31	641,101	0.35	-	-	-	-	Factory Manager, Innolux Corporation M.S. in Mechanical Engineering, National Taiwan University of Science and Technology	Note 8	N/A	N/A	N/A
Independent Director	R.O.C.	Yu-Wen Liang	M 48	2023.06.20	3	2023.06.20	-	-	-	-	-	-	-	-	General Manager, C Sun Mfg., Ltd. Master of Business, MBA, Washington State University	Note9	N/A	N/A	N/A
Independent Director	R.O.C.	Ming-To Yu	M 63	2023.06.20	3	2023.06.20	-	-	-	-	-	-	-	-	Independent Director, Ememory Technology Inc. M.S. Business Administration from Wharton School of the University of Pennsylvania	Note10	N/A	N/A	N/A
Independent Director	R.O.C.	Chen-Ghu Tsao	M 53	2024.06.05	3	2024.06.05	-	-	-	-	10,000	0.01	-	-	Orthotech Ltd.’s President of Greater China Independent Director, C Sun Mfg., Ltd. Master of Business, University of South Australia	Note11	N/A	N/A	N/A
Independent Director	R.O.C.	Yi-Ching Lin	F 50	2023.06.20	3	2017.06.22	-	-	-	-	-	-	-	-	Audit Senior Manager, Deloitte & Touche B.S. in Department of Accounting, Tunghai University.	Note12	N/A	N/A	N/A

Note 1: Jui-Hsiung Yen : Chairman : Tongtai Machine & Tool Co., Ltd. • Asia Pacific Elite Corp. • Quick-Tech Machinery Co., Ltd. • Suzhou Tongyu Machine Tool Co., Ltd (Suzhou) • F.S.E Corporation • Ever Lumin Incorporation • Tong-Yeh Precision Industry Co., Ltd. • Tongfong Auto Tech Co., Ltd. • Tongtai Machine & Tool Japan Co., Ltd • Tong-Yu Machine Tool Co., Ltd (Shanghai) • Great Pursuit Limited • Tong Tai Seiki Vietnam Co., Ltd • PCI-SCEMM • TTGroup Technologies • Cerimatec

Director : Union Top Industrial (SAMOA) Limited • TongTai Machinery Co., Ltd. • Tongtai Machine Tool(MFG) Sdn Bhd • Tongtai Europe B.V. • Yeou Sheng Machine Co., Ltd • Tong-Tai-Shin Trading Co., Ltd (Shanghai) • Hao-Tern-Shin Electronic Co. • Printin3d DigiTech Co., Ltd. • Honor Seiki Company Limited, Ltd (Shenzhen) • Hantop Intelligence Technology Co., Ltd. • Yeong Chin Machinery Industries Co., Ltd. • Phoenix Ten Innovation & Entrepreneurship Investment Co., Ltd.

Supervisor : San Shin Investment Co., Ltd. • San Shin Co., Ltd. • Dong Ying Investment Co., Ltd.

General Manager : Tongtai Machine & Tool Co., Ltd. • Asia Pacific Elite Corp. • Hao-Tern-Shin Electronic Co., Ltd (Shenzhen)

Note 2: Hwa-Chou Yen : Chairman : San Shin Co., Ltd. • San Shin Investment Co., Ltd. • SYSCO Machinery Corporation

Director : Tongtai Machine & Tool Co., Ltd. • Sheng Li Machine Industry Co., Ltd.

Supervisor : Long Power Machinery Corporation • Yeou Sheng Machine Co.Ltd.

Note 3: Cheng Yen : Chairman : Tsan Ying Investment Co., Ltd. • Potzu Co., Ltd.

Director : Tongtai Machine & Tool Co., Ltd. • Long Power Machinery Corporation • San Shin Co., Ltd. • San Shin Investment Co., Ltd. • Yuken Hydraulics (T.W.) Co., Ltd.

Supervisor : SYSCO Machinery Corporation • Quick-Tech Machinery Co., Ltd. • iAmech Technology Inc

General Manager : San Shin Co., Ltd.

Note 4: Su-Hsien Lin : Chairman : TongRing Refrigeration Co., Ltd.

Director : Shan Yuan Construction Development Co., Ltd. • Dayu Optoelectronics Co., Ltd. • Darzhen Venture Corporation

Independent Director : C Sun Mfg., Ltd.

Supervisor : Chun Mao Innovation Investment Corporation.

Note 5: Lu Yen : Chairman : TTGroup France • The Hex Co., Ltd.

Director : Tongtai Machine & Tool Co., Ltd. • Asia Pacific Elite Corp. • Honor Seiki Company Limited • Ruei Yang Corporation • Potzu Co., Ltd. • F.S.E Corporation • C Sun Mfg., Ltd. • Tongtai Machine Tool(MFG) Sdn Bhd • TONGAN GmbH • Mbi-group Beteiligung GmbH • Tongtai Mexico, S.A. DE C.V. • Tongtai Europe B.V.

Supervisor : Suzhou Tongyu Machine Tool Co., Ltd (Suzhou) • Tong-Yu Machine Tool Co., Ltd (Shanghai) • Precision Machinery Research Development Center

Other : Vice President & Spokeperson, Tongtai Machine & Tool Co., Ltd.

Note 6: Jun-Liang Kuo : Chairman : Hong Mai Co., Ltd. • Agein Media & Communications Ltd. Co. • Rehoboth Digital Marketing Co. • Den Da Enterprise Co., Ltd.

Director : Tongtai Machine & Tool Co., Ltd.

Note 7: Weichung Ooi : Director : Tongtai Machine & Tool Co., Ltd. • TTGroup America, Inc.

Supervisor : Ever Lumin Incorporation

Note 8: Tsan-Jen Chen : Chairman : iAmech Technology Inc • Ningbo Qije Trading Co., Ltd.

Director : Ever Lumin Incorporation • F.S.E Corporation • Contrel Holdings Limited

General Manager : Ever Lumin Incorporation

Note 9: Yu-Wen Liang : Chairman and CEO : Gallant Micro. Machining Co., Ltd.

Chairman : Top Creation Machines Co., Ltd. • Power Ever Enterprises Limited • Good Team International Enterprise Limited (Hong Kong) • Navigation Technology Co., Ltd

Vice Chairman and CEO : Gallant Precision Machining Co., Ltd.

Director : Nantong Top Creation Machines Co., Ltd. • Suzou Top Creation Machines Co., Ltd. • Suzhou Chuangfeng Optoelectronic Intelligent Technology Co., Ltd. • Dunpin No. 1 Innovation Investment Co., Ltd. • Phoenix Silicon International Corporation. • NTU Ventures Management Consulting Co., Ltd.

Independent Director : Yu-Chen system technology corp.. Ipso facto dismissed as Independent Director of Control Technology Co., Ltd. on March 27, 2026.

Supervisor : Global Investment Holdings

General Manager : C Sun Mfg., Ltd.

Note10: Ming-To Yu : Resigned as Control Technology's independent director in Feb. 2025.

Independent Director : Ememory Technology Inc.

Note11: Chen-Ghu Tsao : Independent Director : C Sun Mfg., Ltd.. Appointed as Independent Director of Control Technology Co., Ltd. in June 2025, and ipso facto dismissed on March 27, 2026.

Note12 : Yi-Ching Lin : Independent Director : Chang Wah Technology Co., Ltd. • Sun Rise E&T Corporation • San Fang Chemical Industry Co., Ltd.. Resigned as an Independent Director of Control Technology Co., Ltd. at the end of March 2026.

Note13 : If the Chairman of the company holds the position of General Manager or an equivalent level executive, and if they are either spouses or immediate relatives, the reasons, rationality, necessity, and corresponding measures should be explained. : None.

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List of Main Shareholders of the Directors that are Institutional Shareholders
2026.03.30

Name of Institutional Shareholders	Main Shareholders of Institutional Shareholders
Jui Hsiu Investment Co., Ltd.	Chan Fu Investment Co., Ltd.	19.40%
	Jui Lin Investment Co., Ltd.	16.42%
	Tien Wei Investment Co., Ltd.	16.42%
	Lin Yen	16.75%
	Wei Yen	16.75%
	Hsiu-Hui Lin	7.46%
	Fu Yen	4.72%
	Jui-Hsiung Yen	2.08%
San Shin Co., Ltd.	Jui Hsiu Investment Co., Ltd.	14.54%
	Se Cheng Lu Investment Ltd.	13.14%
	Tsan Ying Investment Co., Ltd.	11.59%
	San Shin Investment Co., Ltd.	8.28%
	Wen Lan Investment Ltd.	8.07%
	Chuan Lin Investment Ltd.	5.78%
	Chien-Chuan Cheng	4.00%
	Chan Yao Investment Co., Ltd.	3.83%
	Hui-Lan Su	3.19%
	Hsueh-Fen Lin	3.00%
Tongtai Machine & Tool Co., Ltd.	San Shin Investment Co., Ltd.	6.40%
	San Shin Co., Ltd	4.84%
	Jui Hsiu Investment Co., Ltd.	3.19%
	U-min Investment Ltd.	2.23%
	Tsan Ying Investment Co., Ltd.	2.21%
	Jui-Hsiung Yen	2.15%
	Se Cheng Lu Investment Ltd.	2.08%
	Wei Ling Investment Ltd.	1.87%
	Hong Mai Co., Ltd.	1.69%
	Contrel Technology Co., Ltd.	1.50%
Se Cheng Lu Investment Ltd.	Se Yen	18.40%
	Cheng Yen	18.40%
	Lu Yen	18.40%
	Yen Se Investment Ltd.	9.20%
	Yen Cheng Investment Ltd.	9.20%
	Yen Lu Investment Ltd.	9.20%
	Hwa-Chou Yen	8.60%
	Li-Hui Cheng	8.60%
Meta-Sequoia Investment Ltd.	Su-Hsien Lin	55.45%
	Shu-Yi Lin	24.84%
	Pei-Hua Lin	17.58%
	Jia-Hua Lin	2.13%
Tsan Ying Investment Co., Ltd.	Jui Hsiu Investment Co., Ltd.	29.75%
	Se Cheng Lu Investment Ltd.	21.72%
	Cheng Yen	10.06%
	Wei Ling Investment Ltd	8.82%
	Min Yeh Investment Ltd	8.82%
	Hui-Jen Yen	6.57%
	Chi-Jui Yang	2.73%
	Se Yen	2.40%
	Lu Yen	2.40%
	Chih-Hsiang Yang	2.24%

List of Main Shareholders of the Institutional Shareholders Whose Main Shareholders are Institutional Holders

2026.03.30

Institutional Shareholder	Main Shareholder of Institutional Shareholder
Jui Hsiu Investment Co., Ltd.	Chan Fu Investment Co., Ltd.	19.40%
	Jui Lin Investment Co., Ltd.	16.42%
	Tien Wei Investment Co., Ltd.	16.42%
	Lin Yen	16.75%
	Wei Yen	16.75%
	Hsiu-Hui Lin	7.46%
	Fu Yen	4.72%
	Jui-Hsiung Yen	2.08%
San Shin Co., Ltd.	Jui Hsiu Investment Co., Ltd.	14.54%
	Se Cheng Lu Investment Ltd.	13.14%
	Tsan Ying Investment Co., Ltd.	11.59%
	San Shin Investment Co., Ltd.	8.28%
	Wen Lan Investment Ltd.	8.07%
	Chuan Lin Investment Ltd.	5.78%
	Chien-Chuan Cheng	4.00%
	Chan Yao Investment Co., Ltd.	3.83%
	Hui-Lan Su	3.19%
	Hsueh-Fen Lin	3.00%
Tsan Ying Investment Co., Ltd.	Jui Hsiu Investment Co., Ltd.	29.75%
	Se Cheng Lu Investment Ltd.	21.72%
	Cheng Yen	10.06%
	Wei Ling Investment Ltd	8.82%
	Min Yeh Investment Ltd	8.82%
	Hui-Jen Yen	6.57%
	Chi-Jui Yang	2.73%
	Se Yen	2.40%
	Lu Yen	2.40%
	Chih-Hsiang Yang	2.24%
Se Cheng Lu Investment Ltd.	Se Yen	18.40%
	Cheng Yen	18.40%
	Lu Yen	18.40%
	Yen Se Investment Ltd.	9.20%
	Yen Cheng Investment Ltd.	9.20%
	Yen Lu Investment Ltd.	9.20%
	Hwa-Chou Yen	8.60%
	Li-Hui Cheng	8.60%
Chan Fu Investment Co., Ltd.	Fu Yen	99.99%
	Hsiu-Hui Lin	0.01%
Jui Lin Investment Co., Ltd.	Lin Yen	100%
Tien Wei Investment Co., Ltd.	Wei Yen	100%
Wen Lan Investment Ltd.	Ya-Chih Cheng	38.83%
	Ya-Sui Cheng	18.53%
	Jen-Tzu Cheng	41.56%
	Hui-Lan Su	1.08%
Chuan Lin Investment Ltd.	Hsueh-Fen Lin	33.70%
	Yu-Hsiao Cheng	66.30%

Institutional Shareholder	Main Shareholder of Institutional Shareholder
Chan Yao Investment Co., Ltd.	Chung-Jung Yen	25.00%
	Chi-Lun Yen	25.00%
	Tsung-Ho Yen	25.00%
	Chao-Chun Yen	25.00%
San Shin Investment Co., Ltd.	Tsan Ying Investment Co., Ltd.	13.80%
	Jui Hsiu Investment Co., Ltd.	13.09%
	Wen Lan Investment Ltd.	11.48%
	Se Cheng Lu Investment Ltd.	11.38%
	Chuan Lin Investment Ltd.	8.36%
	San Shin Co., Ltd.	8.28%
	Chan Yao Investment Co., Ltd.	5.53%
	Hui-Jen Yen	2.56%
	Hui-Min Yen	2.56%
	Chien-Chuan Cheng	2.34%
U-min Investment Ltd.	Shu-Hui Chiu Chuang	53%
	Ulysses Chuang	15.66%
	Eugene Chuang	15.66%
	Jeanne Chuang Reynolds	15.66%
Wei Ling Investment Ltd.	Wei Ling Ooi	46.15%
	Weichung Ooi	23.08%
	Hsin-Yi Lee	23.08%
	Hui-Jen Yen	7.69%
Min Yeh Investment Ltd.	Chih-Hsiang Yang	36.21%
	Chi-Jui Yang	36.21%
	Fu-Tzu Yang	26.80%
	Yuan-Hsun Yang	0.39%
	Hui-Min Yen	0.39%
Hong Mai Co., Ltd.	Jun-Liang Kuo	50%
	Ling-Li Kuo	50%
Yen Se Investment Ltd.	Se Yen	100%
Yen Cheng Investment Ltd.	Cheng Yen	100%
Yen Lu Investment Ltd.	Lu Yen	100%

Professional qualifications of Directors (including Independent Directors) and independence information disclosure of Independent Directors : 2026.03.30

| Qualifications
Name | Professional qualifications and experience | Independence(Note1) | Number of Other Taiwanese Public Companies Concurrently Serving as an Independent director |
| --- | --- | --- | --- |
| Chairman
Jui Hsiu Investment Co., Ltd.
Representative:
Yen Jui-Hsiung Yen | Graduated from the Mechanical Engineering Department of NCKU. Currently the chairman of the Company. Has served as the chairman and representative of juridical person director of several companies. Has more than 5 years of experience needed for business, finance and company's operations, and has not involved in circumstances specified in Article 30 of the Company Act. | None | - |
| Director
San Shin Co., Ltd.
Representative : Hwa-Chou Yen | Graduated from the Department of Civil Engineering at Chung Yuan Christian University. Has served as the chairman and representative of juridical person director of several companies. Has more than 5 years of experience needed for business, finance and company's operations, and has not involved in circumstances specified in Article 30 of the Company Act. | | - |
| Director
San Shin Co., Ltd.
Representative : Cheng Yen | Graduated from the Department of Information Management at NTPU and the Department of Industrial Engineering at Columbia University in the City of New York. Has served as the trader at SinoPac Securities Has served as the chairman and representative of juridical person director of several companies. Has more than 5 years of experience needed for business, finance and company's operations, and has not involved in circumstances specified in Article 30 of the Company Act. | | - |
| Director
Meta-Sequoia Investment Ltd.
Representative : Su-Hsien Lin | Graduated from the Department of Chemical and Materials Engineering at Tamkang University. Has served as a director and independent director of several companies. Has worked as a sales manager at KLA Corporation and Allied Material Technology Corp. Has more than 5 years of experience in business | | 1 |

-12-

-13-

| Qualifications
Name | Professional qualifications and experience | Independence(Note1) | Number of Other Taiwanese Public Companies Concurrently Serving as an Independent director |
| --- | --- | --- | --- |
| | years of experience in business and finance and the Company's operations, and has not involved in circumstances specified in Article 30 of the Company Act. | | |
| Independent Director
Yu-Wen Liang
(Note2) | Graduated from the Washington State University Business School. Currently, the General Manager of C Sun Mfg., Ltd. Also holds positions as Chairman and Director in multiple companies. Serving on this company's Audit and Compensation Committees,Has more than 5 years of experience needed for business, finance and company's operations, and has not involved in circumstances specified in Article 30 of the Company Act. | During the two years prior to the appointment and throughout the term of service, all of the independence assessment criteria have been met :
1. Not an employee of the Company or any of its affiliates.
2. Not a director or supervisor of the company or any of its affiliates.
3. Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of one percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings.
4. Not a manager in (1) or not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of personnel in (2) and (3).
5. Not directors, supervisors, managers, or shareholders holding more than 5% of shares of a specific company or organization that is in financial or business dealings with the Company.
6. Not a majority of the Company's director seats or voting shares and those of any other company are controlled by the same person: a director, supervisor, or employee of that other company.
7. Directors, supervisors or employees of other companies or institutions that are not the same person or spouse as the chairman, president or equivalent positions of the Company.
8. Not directors, supervisors, managers, or shareholders holding more than 5% of shares of a specific company or organization that is in financial or business dealings with the Company.
9. Not a professional individual who, or an owner, partner, director, supervisor, or president of a sole proprietorship, partnership, company, or institution that, provides auditing and | - |
| Independent Director
Ming-To Yu
(Note3) | Graduated from the University of Pennsylvania's Wharton School of Business. Formerly served as Chief Financial Officer at MediaTek Inc. and held director positions in multiple companies. Serving on this company's Audit and Compensation Committees,Has more than 5 years of experience needed for business, finance and company's operations, and has not involved in circumstances specified in Article 30 of the Company Act. | | - |
| Independent Director
Chen-Ghu Tsao
(Note4) | Graduated with an MBA from the University of South Australia; formerly served as President of Greater China at Orbotech Ltd. Currently serves as a member of the Audit Committee and Remuneration Committee of the Company. Possesses over five years of work experience required for commerce and corporate business, and is free of any circumstances listed in Article 30 of the Company Act. | | 1 |

| Qualifications
Name | Professional qualifications and experience | Independence(Note1) | Number of Other Taiwanese Public Companies Concurrently Serving as an Independent director |
| --- | --- | --- | --- |
| Independent Director
Yi-Ching Lin
(Note5) | Graduated from the Department of Accounting of Tunghai University. Currently a practicing accountant of Jing-Cheng Accounting Firm, and had worked as the assistant vice president of the Audit Department of Deloitte Taiwan, and is a CPA. Currently the convener of the Company's Audit Committee and Remuneration Committee. Has more than 5 years of experience in business, finance, accounting and the Company's operations, and has not involved in circumstances specified in Article 30 of the Company Act. | commercial, legal, financial, accounting services or consultation that does not exceed NT$500,000 in remuneration over the last two years to the Company or to any affiliate of the Company, or a spouse thereof.
10. Not having a marital relationship, or a relative within the second degree of kinship to any other director of the Company.
11. Not a government agency, juristic person, or its representative set forth in Article 27 of the Company Act. | 3 |

Note : 1. In accordance with the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies, the Company has obtained independent directors' Independence Statement, ensuring that they all meet the independence qualification requirements stipulated by the law and regulations.
2. Yu-Wen Liang : Ipso facto dismissed as Independent Director of Control Technology Co., Ltd. on March 27, 2026.
3. Ming-To Yu : Resigned as Control Technology's independent director in Feb. 2025.
4. Chen-Ghu Tsao : Appointed as Independent Director of Control Technology Co., Ltd. in June 2025, and ipso facto dismissed on March 27, 2026.
5. Yi-Ching Lin : Resigned as an Independent Director of Control Technology Co., Ltd. at the end of March 2026.

Diversity and Independence of the Board of Directors :

(1) Diversity of the Board of Directors :

We have formulated the Articles of Incorporation, the Directors Election Procedures and the Corporate Governance Best Practice Principles, which clearly stipulate that the election of directors adopts the candidate nomination method, and the nomination and qualifications review are subject to the approval by the board resolution before being submitted to the shareholder meeting for the election. In addition, the Directors Election Procedures and the Corporate Governance Best Practice Principles stipulate the election of directors and take into account the overall board configuration.

A. Background and value: Gender, age, nationality, culture, etc.
B. Knowledge and skills: Career background (e.g. law, accounting, industry, finance, marketing or technology), professional skill and industry experience.

All board members shall possess the knowledge, skills, and characters needed to perform their duties, and the skills include judgment on operations, business management, leadership and decision-making, industry knowledge, vision of international markets, crisis management, accounting and financial analysis.

The current session of the board of directors consists of 11 directors, including 3 independent directors. There are 2 female directors (one of whom is an independent director), 9 male directors. Female directors account for 18% of the board. In terms of the skills to perform duties, one of the directors is a CPA, and other directors have years of experience in the industry, management, decision-making, vision of international markets, leadership and crisis management. The composition of the current session of the board has gradually taken steps to achieve diversity.

In selecting members of the Board of Directors, the Company adheres to the principle of meritocracy and considers various aspects of diversity, including gender, age, nationality, and other factors. Due to the nature of the industry in which the Company operates, where female participation is relatively limited, and given that professional competence and industry experience are the primary criteria in the selection process, the Company has not set specific gender ratio requirements at this time. However, as the proportion of female directors currently falls short of one-third of total board seats, the Company will prioritize female candidates in future board nomination processes and actively seek qualified female professionals with relevant industry experience to enhance gender diversity on the Board.

The specific management objectives and achievement of the board diversity policy are as follows:

Management goals	Achievement
Directors who also serve as company managers should not exceed one-third of the number of directors	Achieved
Pay attention to gender equality in the composition of the board of directors, including at least 1 female director	Achieved
The term of independent directors has not exceeded 3 terms	Achieved
Adequately diversified professional knowledge and skills and professional background	Achieved

Implementation of diversity of board members:

Diversified Core Title	Basic component	Professional knowledge and skills
Name	Country of Citizenship	gender
1~3 years	3~9 years
Chairman	Jui-Hsiung Yen	R.O.C.
Director	Hwa-Chou Yen	R.O.C.
Director	Cheng Yen	R.O.C.
Director	Su-Hsien Lin	R.O.C.
Director	Lu Yen	R.O.C.
Director	Jun-Liang Kuo	R.O.C.
Director	Weichung Ooi	U.S.A.
Director	Tsan-Jen Chen	R.O.C.
independent director	Yu-Wen Liang	R.O.C.
independent director	Chen-Ghu Tsao	R.O.C.
independent director	Yi-Ching Lin	R.O.C.

(2) Independence of the Board of Directors :

The current board has 11 directors, including 3 independent directors and 3 of the directors concurrently working as employees for the Company, accounting for $27\%$ of all board seats, respectively. As of the end of 2025, all independent directors met the relevant standards stipulated by the law and regulations. Majority of the board is not involved in circumstances stipulated in Paragraph 3 and 4, Article 26-3 of the Securities and Exchange Act. Please refer to the "Disclosure of professional qualifications of directors and independence of independent directors".

2.1.2 Information Regarding Management Team

2026.03.30

Title	Nationality	Name	Gender	On-board Date	Shareholding		Spouse & Minor		Shareholding by Nominee Arrangement		Education & Selected Past Positions	Current Positions at Other Companies	Officers who are the Spouse or a Relative Within Two Degrees of Kinship			Remark (Note 2)
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
General Manager	R.O.C.	Tsan-Jen Chen	M	2010.06.17	641,101	0.35%	—	—	—	—	Factory manager,Innolux MS in Mechanical Engineering,NTUST	Refer to page 12	None	None	None	None
Associate General Manager	R.O.C.	Chih-Feng,Chang	M	2020.03.01	1,064	0.00%	948	0.00%	—	—	Director of Automated products,Control BS in Mechanical Engineering, STUST	None	None	None	None	None
Associate General Manager	R.O.C.	Ying-Nan,Chen	M	2021.04.01	2,081	0.00%	—	—	—	—	Director of Panel products,Control MS in Department of Systems and Naval Mechatronic Engineering,NCKU	None	None	None	None	None
Associate General Manager	R.O.C.	Ming-Xuan,Zhong	M	2021.04.01	—	—	—	—	—	—	Director of Sales Division- Overseas ,Control BS in Electronic Engineering, KSU	None	None	None	None	None
Associate General Manager	R.O.C.	Chih-Hao,Tsai	M	2024.02.01	—	—	—	—	—	—	Senior Assistant Manager, Chilin Technology Co., Ltd. Ph.D. in Department of Materials Science and Engineering, NYCU	None	None	None	None	None
Associate General Manager (Note 1)	R.O.C	Wei-Yao,Hsu	M	2024.08.04	100,000	0.05%	—	—	—	—	Special Assistant,Coretronic Corporation Ph.D. in Department of Mechanical Engineering,CCU	None	None	None	None	None
Director of Finance and Accounting Division	R.O.C.	Zih-Huei Wang	F	2022.06.24	—	—	—	—	—	—	Director + Taiyen Green Energy Master of Accounting, NCCU	None	None	None	None	None

Note 1: Wei-Yao Hsu was appointed as Associate General Manager on August 4, 2025.
Note 2: Where the Chairperson, President, or individual with equivalent roles are the same individual, spouses, or relatives within the first degree of kinship, the Company shall specify related information regarding the reason, reasonableness, necessity, and response measures: None

2.2 Remuneration of Directors, Supervisors, GENERAL MANAGER and Vice President

Remuneration for Directors and Independent Director (remuneration disclosed in the aggregate by remuneration range, with the names indicated)

2025Y: Units: NT$ in thousands%

Title	Name	Directors' remuneration							Total Remuneration (A+B+C+D) as a percentage of net income after tax (%)	Remuneration from concurrent position as employee								Total Compensation (A+B+C+D+E+F+G) as a percentage of net income after tax (%)	Remuneration Received from Invested Companies other than the Company's Subsidiary or from ParentCompany
		Base Compensation (A)		Severance Pay and Pensions (B)		Compensation to Directors (C)		Allowances (D)			Base Compensation, Bonuses, and Allowances (E)		Severance Pay and Pensions (F)		Profit distribution for employee remuneration (G)
		Tongta i	From All Consolidated Entities	Tongta i	From All Consolidated Entities	Tongta i	From All Consolidated Entities	Tongta i	From All Consolidated Entities	Tongta i	From All Consolidated Entities	Tongta i	From All Consolidated Entities	Tongta i	From All Consolidated Entities	Tongtai		From All Consolidated Entities		Tongta i	From All Consolidated Entities
																Cash	Stock	Cash				Stock
Chairman	Jui Huia Investment Co., Ltd. Representative: Jui-Hsiang Yen	-	-	-	-	778	1,739	28	28	806 0.36%	1,767 0.79%	-	-	-	-	-	-	-	-	806 0.36%	1,767 0.79%	None
Director	San Shin Co., Ltd. Representative: Hwa-Chen Yen	-	-	-	-	389	389	23	23	412 0.18%	412 0.18%	-	-	-	-	-	-	-	-	412 0.18%	412 0.18%	None
	San Shin Co., Ltd. Representative: Cheng Yen	-	-	-	-	389	389	28	28	417 0.19%	417 0.19%	-	-	-	-	-	-	-	-	417 0.19%	417 0.19%	None
	Meta-Suquiia Investment Ltd. Representative: Su-Hsien Lin	-	-	-	-	389	389	37	37	426 0.19%	426 0.19%	-	-	-	-	-	-	-	-	426 0.19%	426 0.19%	None
	Tongtai Machine & Tool Co., Ltd. Representative: Jun-Liang Kuo	-	-	-	-	389	389	37	37	426 0.19%	426 0.19%	-	-	-	-	-	-	-	-	426 0.19%	426 0.19%	None
	Je Cheng Lu Investment Ltd. Representative / Lu Yen	-	-	-	-	389	389	28	28	417 0.19%	417 0.19%	720	720	-	-	-	-	-	-	1,137 0.51%	1,137 0.51%	None
	Tsan Ying Investment Co., Ltd. Representative: Weichung Ooi	-	-	-	-	389	389	25	25	414 0.18%	414 0.18%	2	2							416 0.19%	416 0.19%	None
	Tsan-Jen Chen	-	-	-	-	778	1,740	28	28	806 0.36%	1,768 0.78%	4,130	5,810			194		1,814		5,130 2.28%	9,392 4.17%	None
Independent Director	Yu-Wen Liang	420	420	-	-	-	-	29	29	449 0.20%	449 0.20%	-	-	-	-	-	-	-	-	449 0.20%	449 0.20%	None
	Ming-To Yu	70	70	-	-	-	801	8	8	78 0.03%	879 0.39%			-	-	-		-	-	78 0.03%	879 0.39%	None
	Chen-Ghu Tsao	245	245					10	10	255 0.11%	255 0.11%									255 0.11%	255 0.11%	None
	Yi-Ching Lin	420	420	-	-	-	-	25	25	445 0.20%	445 0.20%			-	-	-		-	-	445 0.20%	445 0.20%	None
Total		1,155	1,155	-		3,890	6,614	306	306	5,351 2.38%	8,075 3.59%	4,852	6,532	-	-	194	-	1,814	-	10,397 4.63%	16,421 7.31%

Please state the policy, system, standard and structure of remuneration paid to Independent Directors and the correlation between factors such as responsibilities and risks assumed, time spent, and other factors:
(1) As well as time contributed and the amount of payment. Remuneration is determined based on the Articles of incorporation. The Compensation Committee would evaluate the involvement of Directors in the business operation of the Company and their contributions to the Company with reference to the remuneration standard of the industry.
(2) The fixed remuneration paid to independent directors is determined by the Board of Directors with reference to the general standard in the industry. After prudent internal assessment of future risks and individual contributions, the Board of Directors reviewed the proposal and resolved to pay NTS35,000 to each independent director per month, and they do not participate in the Company's earnings distribution.
(3) The honoraria for independent directors' attendance at board meetings and functional committee meetings are determined with reference to the general standard in the industry
Except for information disclosed above, remuneration paid for services rendered by Directors of the Company to all consolidated entities (e.g., being a nonemployee consultant) in the most recent year: None.

Compensation Range Table

Range of remuneration paid to each director	Name of director
	Total amount of (A+B+C+D)		Total amount of (A+B+C+D+E+F+G)
	The Company	All Consolidated Entities H	The Company	All Consolidated Entities I
Less than NTD 1,000,000	Tsan-Jen Chen
Jui Hsiu Investment Co., Ltd.
Representative: Jui-Hsiung Yen
San Shin Co., Ltd. Representative: Hwa-Chou Yen
San Shin Co., Ltd. Representative: Cheng Yen
Se-Cheng-Lu Investment Ltd. Representative: Lu Yen
Meta-Sequoia Investment
Ltd. Representative: Su-Hsien Lin
Tongtai Machine & Tool Co.,
Ltd. Representative: Jun-Liang Kuo
Tsan Ying Investment Co.,
Ltd. Representative: Weichung Ooi
Yi-Ching Lin
Yu-Wen Liang
Ming-To Yu
Chen-Ghu Tsao	San Shin Co., Ltd. Representative: Hwa-Chou Yen
San Shin Co., Ltd. Representative: Cheng Yen
Se-Cheng-Lu Investment
Ltd. Representative: Lu Yen
Meta-Sequoia Investment
Ltd. Representative: Su-Hsien Lin
Tongtai Machine & Tool Co.,
Ltd. Representative: Jun-Liang Kuo
Tsan Ying Investment Co.,
Ltd. Representative: Weichung Ooi
Yi-Ching Lin
Yu-Wen Liang
Ming-To Yu
Chen-Ghu Tsao	San Shin Co., Ltd. Representative: Hwa-Chou Yen
San Shin Co., Ltd. Representative: Cheng Yen
Meta-Sequoia Investment
Ltd. Representative: Su-Hsien Lin
Tongtai Machine & Tool Co.,
Ltd. Representative: Jun-Liang Kuo
Tsan Ying Investment Co.,
Ltd. Representative: Weichung Ooi
Yi-Ching Lin
Yu-Wen Liang
Ming-To Yu
Chen-Ghu Tsao
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive)		Tsan-Jen Chen
Jui Hsiu Investment Co., Ltd.
Representative: Jui-Hsiung Yen	Se-Cheng-Lu Investment
Ltd. Representative: Lu Yen	Jui Hsiu Investment Co., Ltd.
Representative: Jui-Hsiung Yen
Se-Cheng-Lu Investment
Ltd. Representative: Lu Yen
NT$2,000,000 (inclusive) ~ NT$3,500,000 (exclusive)
NT$3,500,000 (inclusive) ~ NT$5,000,000 (exclusive)
NT$5,000,000 (inclusive) ~ NT$10,000,000 (exclusive)			Tsan-Jen Chen	Tsan-Jen Chen
NT$10,000,000 (inclusive) ~ T$15,000,000 (exclusive)
NT$15,000,000 (inclusive) ~ T$30,000,000 (exclusive)
NT$30,000,000 (inclusive) ~ T$50,000,000 (exclusive)
NT$50,000,000 (inclusive) ~ T$100,000,000 (exclusive)
NT$100,000,000 and above
Total	12	12	12	12

Note 1: The 2025 remuneration for directors and employees was approved by the board on March 6, 2026. The employee remuneration in the above table is tentatively estimated based on the actual amount distributed in the most recent year, and has not been approved by the Remuneration Committee and the board.

supervisor's remuneration : None.
Remuneration for General Manager and Vice Presidents

2025Y : Units: NT$ in thousands/%

Title	Name	Salary (A)		Severance Pay and Pensions (B)		Bonuses and Allowances (C)		Employee remuneration from profit distribution (D)				Total Compensation (A+B+C+D) as a percentage of Net income after tax (%)
		Tongtai	From All Consolidated Entities	Tongtai	From All Consolidated Entities	Tongtai	From All Consolidated Entities	Tongtai		From All Consolidated Entities		Tongtai	From All Consolidated Entities
								Cash	Stock	Cash	Stock
General Manager	Tsan-Jen Chen	3,124	4,564	-	-	1,006	1,246	194	-	1,814	-	4,324
1.92%	7,624
3.39%	None

Compensation Range Table

Range of remuneration paid to president and vice presidents	Names of president and vice presidents
	The Company	All Consolidated Entities
Less than NTD 1,000,000
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive)
NT$2,000,000 (inclusive) ~ NT$3,500,000 (exclusive)
NT$3,500,000 (inclusive) ~ NT$5,000,000 (exclusive)	Tsan-Jen Chen
NT$5,000,000 (inclusive) ~ ~NT$10,000,000 (exclusive)		Tsan-Jen Chen
NT$10,000,000 (inclusive) ~ NT$15,000,000 (exclusive)
NT$15,000,000 (inclusive) ~ NT$30,000,000 (exclusive)
NT$30,000,000 (inclusive) ~ NT$50,000,000 (exclusive)
NT$50,000,000 (inclusive) ~NT$100,000,000 (exclusive)
NT$100,000,000 and above
Total	1	1

Individual disclosure of the top five highest-paid executives: : Not applicable due to the following reasons.

(1) There have been no instances of after-tax losses in the individual financial reports in the past three years: None.
(2) The recent annual corporate governance evaluation results for the over-the-counter listed company rank in the second-lowest tier.: None.

Employee Remuneration Paid to Management

2025Y : Units: NT$ in thousands/%

| | Title | Name
(Note 1) | Employee Compensation in Stock amount | Employee Compensation in Cash
(Note 2) | Total | Ratio of Total Amount to Net Income (%) |
| --- | --- | --- | --- | --- | --- | --- |
| | Associate General Manager | Chih-Feng,Chang | - | 1,394 | 1,394 | 0.62% |
| | Associate General Manager | Chih-Hao,Tsai | | | | |
| | Associate General Manager | Ying-Nan,Chen | | | | |
| | Associate General Manager | Ming-Xuan,Zhong | | | | |
| | Associate General Manager | Wei-Yao,Hsu | | | | |
| | Director of Finance and Accounting Division | Zi-Hui,Wang | | | | |

Comparison of Remuneration for Directors, Supervisors, President and Vice Presidents in the Most Recent Two Fiscal Years and Remuneration Policy for Directors, Supervisors, President and Vice Presidents.

(1) Analysis of remuneration and compensation paid to Directors, Supervisors, President and Vice Presidents by the Company and all consolidated entities in 2022 and 2021 as a percentage of net income in the parent company only or individual financial statements:

Units: NT$ in thousands/%

Item	2025		2024
	Tongtai	From All Consolidated Entities	Tongtai	From All Consolidated Entities
Director	4.63%	7.31%	6.19%	10.41%
General Manager、Vice President	1.92%	3.39%	7.58%	9.97%

Description:

i. As the net profit after tax for 2025 increased compared to 2024, the allocated remuneration for directors and employees also increased. Furthermore, since some directors concurrently serve as employees, their salaries do not decrease alongside fluctuations in profit. Therefore, it is reasonable that the ratio of directors' remuneration to net profit after tax in 2025 decreased compared to 2024.
ii. Net profit after tax for 2025 grew compared to 2024. Because the General Manager's salary does not decrease in response to profit fluctuations, and further due to the retirement of two Vice Presidents in 2025 as well as the General Manager concurrently serving as the General Manager of a subsidiary, the ratio of total remuneration to net profit after tax decreased compared to 2024, which remains reasonable

(2) Remuneration policy, standards and composition, procedures and the correlation with operation performance and future risks:

i. Directors' compensation includes job remuneration, travel allowances, and directors' remuneration appropriated from the Company's profits. According to the Company's Articles of Incorporation, directors' remuneration for performing duties, regardless of profit or loss, is paid according to the degree of participation in operations and contribution, and based on the standard of industry peers. In addition, travel expenses are paid according to the number of meetings attended. Directors' remuneration appropriated from the Company's profits is based on the Articles of Incorporation, and shall not be exceed 3% of the pre-tax net profit of the year.

ii. Independent directors receive fixed monthly remuneration payments. In 2025, there were a fixed remuneration of $35,000 per month and traveling allowances for each meeting. They do not receive director remuneration appropriated from the Company's profits.

iii. Managers' remuneration includes salary, bonus and employee remuneration. The determination of reasonable salary and bonus takes into account the salary standard among industry peers, the scope of responsibility of the position, achievement of personal performance and the contribution to the Company's operation goals. Employee remuneration is based on the profitability and the percentage specified in the Articles of Incorporation.

iv. The relevant remunerations are determined based on the level of contribution to the Company and the pay standard among industry peers, as well as the positive correlation with the future operational risks faced by the Company and the operating performance, to achieve a balance between sustainable operations and risk control, and so that there is no risk.

v. The Company established its remuneration committee. The remuneration of directors and managers is subject to the resolution of the Remuneration Committee before being reporting to the board for resolution.

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2.3 Corporate Governance

2.3.1 Board of Directors

In the most recent year, The Board of Directors held 5 meetings (A) in 2025:

Attendance status of directors was as follows: :

2025.01.01~2025.12.31

Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%) B/A	Remarks
Chairman	Jui Hsiu Investment Co., Ltd.
Representative: Jui-Hsiung Yen	5	0	100.00	Reelected as the legal representative on 2023.06.20
Director	San Shin Co., Ltd.
Representative: Hwa-Chou Yen	4	1	80.00	Reelected on 2023.06.20
Director	Tsan-Jen Chen	5	0	100.00	Reelected on 2023.06.20
Director	San Shin Co., Ltd.
Representative: Cheng Yen	5	0	100.00	Reelected on 2023.06.20
Director	Meta-Sequoia Investment Ltd.
Representative: Su-Hsien Lin	5	0	100.00	Reelected on 2023.06.20
Director	Se-Cheng-Lu Investment Ltd.
Representative: Lu Yen	5	0	83.33	Reelected on 2023.06.20
Director	Tongtai Machine & Tool Co., Ltd.
Representative: Jun-Liang Kuo	5	0	100.00	Reelected on 2023.06.20
Director	Tsan Ying Investment Co., Ltd.
Representative: Weichung Ooi	5	0	100.00	Reelected on 2023.06.20
Independent Director	Yi-Ching Lin	5	0	100.00	Reelected on 2023.06.20
Independent Director	Yu-Wen Liang	4	0	80.00	Newly selected on 2023.06.20
Independent Director	Chen-Ghu Tsao	2	0	100.00	Newly selected on 2025.06.05
Independent Director	Ming-To Yu	1	0	100.00	Resign on 2025.02.12

Other issues to be recorded:

I. The date, session, proposal content, and resolution specified and the opinion expressed by independent directors shall be specified under any one of the following circumstances:

(I) Matters specified in Article 14-3 of the Securities and Exchange Act: regulations from Article 14-3 are not applicable since the Company has already established an Audit Committee. Forexplanations on matters stipulated in Article 14-5 of the Securities and Exchange Act, please see Operations of the Audit Committee.
(II) Other BOD resolutions to which objections or qualified opinions for the record or in writing are expressed by independent directors: None.

II. For the recusal of directors due to conflict of interest, please describe the name of the director, the content of motion, the reason for recusal and the participation in voting:

Date	Name of Director	Content of Motions	Reasons for Recusal	Participation in Voting
2025.01.22	Tsan-Jen Chen	Distribution of 2024 year-end performance bonus for officers.	Due to the potential conflict of interest involving the directors of our company, they have voluntarily recused themselves in accordance with Rules of Board Meeting on conflict of interest.	Not participating in voting
2025.08.04	Jui-Hsiung Yen
Tsan-Jen Chen	Distribution of remuneration for the juridical person directors of FSE Corporation	Due to the potential conflict of interest involving the directors of our company, they have voluntarily recused themselves in accordance with Rules of Board Meeting on conflict of interest.	Not participating in voting
	Tsan-Jen Chen	The distribution of bonuses to managers.	Director Tsan-Jen Chen also serves as the manager of our company, therefore, he will recuse himself in accordance with the Rules of Procedure for Board Meetings to avoid any potential conflicts of interest.	Not participating in voting

III. The status of the board's self-evaluation:

In order to put corporate governance into practice, the board has approved the "Board Performance Appraisal Measures" on November 6, 2019. The internal board performance appraisal is conducted at least once a year, aiming to clearly define performance goals, improve the board function and reinforce its operational efficiency. Plan and conduct the performance evaluation of the board of directors, including the performance evaluation of the board of directors as a whole, individual board members and functional committees. At the end of each year, the board meeting agenda working group collects information about the Board's activities, distributes the "Self-Assessment Questionnaire for Board Performance", the "Self-Assessment Questionnaire for Board Members" and the "Self-Assessment Questionnaire for Functional Committees" to the chairman, each director and the convener of functional committees, and grades each assessment item based on the actual operation of the board, so as to compile the results of the board's performance evaluation and report to the board.

The status of the 2025 board performance appraisal has been reported to the board on February 4, 2026, and the implementation of the self-assessment is as follows:

Evaluation Cycle	Evaluation Period	Evaluation Scope	Evaluation Method	Evaluation Indexes	Evaluation Result
Once a year	From Jan. 1 2025 to Dec. 31, 2025	The entire Board of Directors	The internal self-evaluation of the board of directors	1. Participation in the operation of the Company.2. Improvement of the quality of the Board of Directors' decision making.3. Composition and structure of the Board of Directors.4. Election and continuing education of the Directors.5. Internal control.	The total score is 4.87 points, the evaluation results were between "Good" and "Excellent", indicating that the overall operation of the board was good, and that the board was capable of performing its due functions and in compliance with relevant laws and regulations.
Once a year	From Jan. 1 2025 to Dec. 31, 2025	Individual board members	self-evaluation of the Board members	1. Understanding of the goals and mission of the Company.2. Awareness of the duties of a director.3. Participation in the operation of the Company.4. Management of internal relationships and communication.5. The director's professionalism and continuing education.6. Internal control.	The total score is 4.85 points, the evaluation results were between "Good" and "Excellent", indicating that the overall operation of the board was satisfactory and in line with the philosophy of corporate governance.
Once a year	From Jan. 1 2025 to Dec. 31, 2025	The Audit Committee & The Remuneration Committee	Conducted by the convener's self-assessment	1. Participation in the operation of the Company.2. Awareness of the responsibilities of the Audit and Remuneration Committees.3. Enhancing the decision-making quality of the Audit and Remuneration Committees4. Composition and member selection of the Audit and Remuneration Committees5. Internal control.	Achieving a total score of 5 points, the Audit and Remuneration Committees received 'Excellent' ratings, reflecting positive feedback on the efficiency and effectiveness of their operations.

IV. An evaluation of targets (such as establishing an audit committee, improving information transparency and others) and performance for strengthening the functional competence of the Board of directors during the current and the most recent years:

In accordance with the law and regulations, regularly and irregularly disclose relevant information on the website designated by the competent authority and the Company's official website, such as directors' attendance at the board meetings, key resolutions of the board of directors, etc.
Establish a remuneration committee to be responsible for carrying out recommendations, evaluation and supervision of the Company's overall salary and remuneration policy, the standard of remuneration to the president and officers, distribution plan of employee remuneration or other employee incentive plans.
The Audit Committee consists of three independent directors. The Committee performs duties stipulated in the Securities and Exchange Act, the Company Act and other laws and regulations, and assists the board to fulfill its supervision of the quality and integrity involved in performing accounting, auditing, financial reporting and financial control tasks, hoping to better supervise the Company's operation and improve the corporate governance.
In order to implement corporate governance and improve the operational efficiency of the board, the Company has completed the formulation of the Board Performance Appraisal Measures on November 6, 2019, and the 2025 performance appraisal results have been reported to the board on February 4, 2026.
In order to maintain the transparency of operations and ensure the rights and interests of shareholders, we proactively disclose relevant information such as key resolutions of the board on the Company's website.
The company has purchased directors' liability insurance for all directors and has filed the necessary declarations as required.
All members of the current board of directors of the company have completed the required continuing education hours in accordance with regulations.

2.3.2 Operations of the Audit Committee

In order to reinforce corporate governance, we have established an audit committee. The Committee is composed of 3 independent directors, and Director Yi-Ching Lin is elected as the convener. The Committee is responsible for reviewing the adequacy of disclosure in the financial statements, the election (discharge) and independence of CPAs, the implementation of the Company's internal control protocols, the Company's compliance with laws and regulations and the control of existing and potential risks.

The Audit Committee held six (A) meetings during 2025; the attendance of independent directors is as follows :

2025.01.01~2025.12.31

Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%)(B/A)	Remarks
Convener	Yi-Ching Lin	5	0	100.00	Reelected on 2023.06.20
Committee member	Yu-Wen Liang	4	0	80.00	Newly selected on 2023.06.20
Committee member	Chen-Ghu Tsao	2	0	100.00	Newly selected on 2025.06.05
Committee member	Ming-To Yu	1	0	100.00	Resign on 2025.02.12
Additional disclosure : I. Where the operations of the Audit Committee meet any of the following circumstances, the minutes in question shall clearly state the meeting date, term, content of the proposal, independent directors’ objections, reservations, or major suggestions, resolutions adopted by the Audit Committee, and the Company’s response to the Audit Committee’s opinions. (I) Matters listed in Article 14-5 of the Securities and Exchange Act: The details are as follows. :
Date Session	Content of Motions		Any objection, expression of reservations or significant recommendations by independent directors	Results of the Audit Committee's resolution	Company's handling of the Audit Committee's opinions
2025.01.22 3th session 9th meeting	1. Review and approve the engagement proposal for the FY2025 assessment of the independent auditors’ independence and suitability.
2. Review the proposed list of non-assurance services to be provided in FY2025 by the audit firm and its related entities.		None	Unanimous vote by all attending audit committee members to approve the motion.	Unanimous vote by all directors in presence.
2025.03.06 3th session 10th meeting	1. Reviewed the 2024 parent-only financial reports, consolidated financial reports and business reports.
2. Reviewed the 2024 annual profit distribution.
3. Reviewed the internal audit report.
4. Reviewed the 2024 evaluation of the effectiveness of internal control system and the Statement on Internal Control.
5. Reviewed the proposed amendments to the Articles of Incorporation.
6. Reviewed the proposed amendments to the Procedures for Engaging in Derivatives Trading.
7. Reviewed the resolution that the FY2024 private placement of common shares has lapsed and will no longer be proceeded with.
8. Reviewed the plan to conduct a private placement of common shares.		None	Unanimous vote by all attending audit committee members to approve the motion.	Unanimous vote by all directors in presence.

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| 2025.05.05
3th session 11th meeting | 1. Reviewed the Company's Q1 2025 consolidated financial reports.
2. Reviewed the internal audit report. | None | Unanimous vote by all attending audit committee members to approve the motion. | Unanimous vote by all directors in presence. |
| --- | --- | --- | --- | --- |
| 2025.08.04
3th session 12th meeting | 1. Reviewed the Company's Q2 2025 consolidated financial reports.
2. Reviewed the internal audit report. | None | Unanimous vote by all attending audit committee members to approve the motion. | Unanimous vote by all directors in presence. |
| 2025.11.07
3th session 13th meeting | 1. Reviewed the Company's Q3 2025 consolidated financial reports.
2. Reviewed the internal audit report.
3. Reviewed the amendment to the "Internal Control System - Payroll Cycle".
4. Reviewed the formulation of the audit plan for the year of 2026.
5. Reviewed the amount of capital loans to subsidiaries. | None | Unanimous vote by all attending audit committee members to approve the motion. | Unanimous vote by all directors in presence. |

(II) Except for the aforementioned matters, other resolutions not passed by the Audit Committee but approved by two-thirds of all directors: None.

II. Where an independent director recused himself/herself due to a conflict of interest, specify the independent director's name, content of the proposal, reason for recusal, and the voting process: None.

III. Communication between independent directors and the internal audit officer and CPAs :

The head of internal audit regularly reports the audit progress to the independent directors before the convening of board meetings. In 2025, a total of 4 sessions of communication meetings with the independent directors were held. The head of internal audit reported on the implementation of the Company's internal audit and the operation of the internal control. In the event of abnormality, independent directors need to be notified right away. So far, the independent directors and the head of internal audit have maintained good communication. The 2025 audit results showed no major abnormalities, and the independent directors had no objections. The status of previous communications is shown as follows:

Meeting Date	Key points	Recommendations and results
2025.03.06	1. 2024 evaluation of the effectiveness of internal control system and the Statement on Internal Control.
2. Implementation of 2024 and 2025 audit plans.	No objection
2025.05.05	1. Implementation of 2025 audit plans.	No objection
2025.08.04	1. Implementation of 2025 audit plans.	No objection
2025.11.07	1. Implementation of 2025 audit plans.
2. Formulate the 2026 annual audit plan	No objection

The CPAs and the Audit Committee, the Company's governance unit, held meetings on December 15, 2025, and March 6, 2026. During these meetings, the CPAs discussed the Audit Committee members about the audit and review of the Company's financial situation and internal control audits, and fully communicated whether regulatory amendments had a significant impact on the Company. So far, the Company's Audit Committee have maintained good communications with the CPAs, and the status of communications is shown as follows

Meeting Date / Location / Parties	Key points	Recommendations and results
2025.12.15
Venue: Both physical and teleconferencing meetings were held at the Company's meeting room.
Participants: Independent Directors Yi-Ching Lin and Chen-Chu Tsao; the Chief Auditor, the Chief Financial Officer, and CPA Xiu-Wen Chen.	Governance unit communication meeting: 2025 annual audit plan matters
1. Responsibilities of the Governance Unit
2. Scope and Methods of Audit
3. Group Audit
4. Significant Accounting Policies, Estimates, and Major Events or Transactions
5. Assessment of Significant Risks and Key Audit Matters
6. Assessment of Going Concern Assumption
7. Auditor's Fees and Public Disclosure of Fee Information
8. Overview of recent regulatory updates.	No objection

| | 9.Audit Quality Indicators (AQIs) and the Transparency Report.
10.Routine pre-approval of non-assurance services. | |
| --- | --- | --- |
| 2026.03.06
Venue: Both physical and teleconferencing meetings were held at the Company's meeting room.
Participants: All independent directors, principal financial officer, and CPA Xiu-wen Chen | Governance unit communication meeting: After 2025 annual audit
1.Responsibilities of the Governing Unit
2.Scope and Methods of Audit
3.Group Audit
4.Significant Accounting Policies, Critical Accounting Estimates, and Major Events or Transactions
5.Significant Risks and Key Audit Matters
6.Corrected and Uncorrected Material Misstatements
7.Assessment of Going Concern Assumption
8.Internal Control Deficiencies Identified During the Audit Process
9.Recommendations and Communication Matters
10.Independence Declaration | No objection |

The abovementioned communication status can be inquired under the Investor/Corporate Governance sections of the Company's website.

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

Issues to be Assessed	Implementation Status
	Yes	No	Summary
1. Does the Company establish and disclose its corporate governance practices in accordance with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies?	☑		(I) On November 4, 2022, the board approved the Corporate Governance Best Practice Principles, which have been disclosed in the rules and regulations of the Investor section on the Company's website at https://www.contrel.com.tw/inv_manage.php and can be downloaded and reviewed by stakeholders.
(II) To protect shareholders' rights and interest, implement the Company's ethical management, and enhance our corporate governance and business information transparency, we have formulated the Ethical Corporate Management Best Practice Principles, the Code of Ethical Conduct, and the Standard Operating Procedures for Handling Directors' Requests in accordance with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and implemented them accordingly.	No significant differences
2. Shareholding Structure & Shareholders' Rights
(I) Does the Company have Internal Operation Procedures for handling shareholders' suggestions, concerns, disputes, and litigation matters? If so, has these procedures been implemented accordingly?
(II) Does the Company possess a list of major shareholders and beneficial owners of these major shareholders?
(III) Has the Company built and implemented a risk control system and firewall between the Company and its affiliates?	☑
☑
☑
☑		(I) In addition to shareholder services agents, the Company has established positions of spokesperson, acting spokesperson, shareholder services specialists and relevant departments to handle shareholders' recommendations or disputes regarding investor relations, shareholder services, legal affairs, etc.
(II) The Company continuously monitors the shareholding status of its directors, executives, and major shareholders holding more than 10% of shares. We also strive to track the list of key shareholders and their ultimate controllers through successive shareholder rosters. Additionally, our dedicated shareholder services unit maintains strong relationships with key shareholders and closely monitors significant matters that may affect shareholding changes to ensure effective oversight of the key shareholders' list.
(III) The division of powers and responsibilities between the Company and subsidiaries is clearly defined, and the "Rules Governing Financial and Business Matters Between this Corporation and its Related Parties" and the "Operating Procedures for Supervision and Management of Subsidiaries" have been formulated. The finances, business, accounting, etc. of subsidiaries are operated independently, and are subject to the Company's control and audit, while providing them with advice on their operations and business management, market trends, exchange rate risks, the impact of new laws and regulations on business, as well as risks and firewall mechanism management and control to fulfill our obligations as a prudent	No significant differences

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Issues to be Assessed	Implementation Status			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Their Reasons
	Yes	No	Summary
(IV)Has the Company established internal rules prohibiting insider trading on undisclosed information?			administrator. We insist on the principles of legality and reasonableness for transactions with other enterprises in the Group.

(IV) In addition to complying with the provisions of the "Securities and Exchange Act", the Company's employees, managers, and directors are also required to adhere to the "Code of Ethical Conduct", "Procedures for Handling Material Internal Information", "Ethical Corporate Management Best Practice Principles", and "Insider Trading Prevention Management Regulations". Relevant personnel are prohibited from using undisclosed information for insider trading or disclosing such information to others to prevent its misuse for insider trading.

Furthermore, the Company places great importance on shareholders' right to information and the prevention of insider trading. In the year 2024, the Company established "Insider Trading Prevention Management Regulations", explicitly stipulating that directors and managers are prohibited from trading company stocks during the 30 days before the announcement of the annual financial report and the 15 days before the announcement of each quarterly financial report (closed periods). The Company adopts internalized regulatory measures to strengthen corporate governance and proactively prevent insider trading. Additionally, the shareholder services unit reminds directors in advance to comply with these regulations before the closed periods begin. | |
| 3. Composition and Responsibilities of the Board of Directors
(I) Has the Board of Directors established a diversity policy for the composition of its members and has it been implemented accordingly?

(II)Other than the Compensation Committee and Audit Committee which are required by law, has the Company voluntarily established other functional committees?
(III)Has the Company established a method of evaluating the performance of its Board of Directors and has the performance evaluation been implemented annually and submitted to its Board of Directors as a | ✓ | | (I) The Company has stipulated in Article 23 of the "Corporate Governance Best Practice Principles" that the composition of the Board of Directors should follow a diversity policy. In accordance with this policy, the Board includes three independent directors. The Board of Directors consists of 11 members, including one female director and one female independent director. All directors and independent directors have rich educational background and work experience, and the composition of diversity enables them to perform functions of business decision-making and supervision. Please refer to pp. 11-16 for the implementation of the diversity policy of all board members

(II) In order to improve the decision-making function and the management practices, the Company has set up the Audit Committee and the Remuneration Committee in accordance with the law, and the independent directors serve as committee members. In the future, other functional committees will be established according to actual operational needs.

(III) The board has formulated the "Board Performance Appraisal Measures" to regulate the annual performance appraisal of board as a whole, individual directors, the Audit Committee and the Remuneration Committee. The 2025 performance evaluation results have been reported to the board meeting held on February 4, 2026. | No significant difference. Other functional committees will be set up as needed. |

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Issues to be Assessed	Implementation Status			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Their Reasons
	Yes	No	Summary
reference for individual director’s remuneration and renewal nomination?

(IV)Does the Company regularly evaluate the independence of its CPAs? | ☑ | | The performance appraisal of the board as a whole had a total score of 4.87 points (97.37%). The evaluation results were between "Good" and "Excellent", indicating that the overall operation of the board was good, and that the board was capable of performing its due functions and in compliance with relevant laws and regulations.

The self-evaluation of individual board members had a total score of 4.85 points (96.93%). The evaluation results were between "Good" and "Excellent", indicating that the overall operation of the board was satisfactory and in line with the philosophy of corporate governance.

Achieving a total score of 5 points, the Audit and Remuneration Committees received 'Excellent' ratings, reflecting positive feedback on the efficiency and effectiveness of their operations.

(IV) The Company refers to the Audit Quality Indicators (AQIs) annually and regularly evaluates the independence and competency of certified accountants. In addition to obtaining an independence statement issued by the accountant and submitting the evaluation results to the Audit Committee for review and approval, the Company then submits the results to the Board of Directors for final approval. On February 4, 2026, the evaluation results confirmed that all criteria met the Company's independence evaluation standards, with no concerns regarding the accountant's independence.

The control measures include:
1. Whether the CPAs and the Company's directors and officers are related parties.
2. Whether they provide the Company with non-audit services that may directly affect the audit work.
3. Whether they have a direct or significant indirect financial interest relationship with the Company or affiliates.
4. Whether the rotation of CPAs in accordance with the regulations is conducted.
5. Whether the statement of independence from the CPAs is obtained.

Evaluation results:
(1). The independence of the CPAs from the Company complies with the Certified Public Accountant Act and the Code of Ethics for Professional Accountants.
(2). The Company has not appointed the same accountants to conduct auditing for seven consecutive years. | |

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Issues to be Assessed	Implementation Status	Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Their Reasons
Yes	No	Summary
4. Has the Company assigned competent and appropriate personnel and designated corporate governance officer to be in charge of matters related to corporate governance (including but not limited to providing information required by directors and supervisors related to business operations, handling matters relating to Board of Directors' meetings and General Shareholders' Meetings pursuant to the laws, handling corporate registration and amendment registration, and recording minutes of the Board of Directors' meetings and General Shareholders' Meetings)?	✓
Date	Organizer	Course name
2025/6/11	TABF	Corporate Governance Forum
2025/9/5	SFI	Practical Applications of TCFD, TNFD, and IFRS S1/S2
2025/12/18	SFI	How Directors and Supervisors Oversee the Establishment and Implementation of a Robust Risk Management Framework
2025/12/26	SFI	Operating Strategies and Outlook for Taiwan's Industries in the First Half of 2026 Amid Geopolitical Risks
5. Has the Company established a means of communication with its stakeholders (including but not limited to shareholders, employees, customers, and suppliers) or created a stakeholder section on the Company's website? Does the Company respond appropriately to stakeholders' questions on major issues of corporate social responsibility?	✓
6. Has the Company appointed a professional registrar for its General Shareholders' Meetings?	✓
7. Information Transparency (I) Has the Company established a corporate website to disclose information regarding its financial, business, and corporate governance status?	✓

Issues to be Assessed	Implementation Status			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Their Reasons
	Yes	No	Summary
(II) Does the Company use other information disclosure channels (e.g., maintaining an English website, designating staff to handle information collection and disclosure, appointing spokespersons, webcasting investor conferences etc.)?	☑		(II) The Company's website is maintained by dedicated specialists and implemented a spokesperson mechanism to ensure that information that may affect shareholders’ and stakeholders’ decision-making process can be disclosed in a timely and appropriate manner. We have released material information in both Chinese and English and presentation materials for investor conferences in both Chinese and English on the MOPS and the Company's website to ensure full discloses of our information.	No significant differences
(III) Does the Company perform public announcement and registration of annual consolidated financial reports within two months after the end of fiscal year and also publicly announces and registers the quarterly financial reports of the first, second, third quarter and monthly operating status within the prescribed period?		☑	(III) We announce and submit the annual and quarterly financial reports and monthly status of operations before the specified deadline, but we are still planning to announce the submit the annual financial report within two months after the end of the fiscal year.	Still assessing.
8. Has the Company disclosed other information to facilitate a better understanding of its corporate governance practices? (Including but not limited to employee rights, employee care, investor relations, supplier relations, stakeholder rights, continuing education of directors and supervisors, implementation of risk management policies and criteria for risk evaluation, implementation of customer relation policies, and the purchase of liability insurance for directors and supervisors)?	☑		I. Rights and interests of employees: The Company protects the rights and interests of employees according to the Labor Standards Act and relevant regulations.
II. Employee care: In addition to protecting the rights and interests of employees in accordance with the Labor Standards Act, the following welfare measures are provided: Employee remuneration distribution system; comprehensive talent training plan; complete employee education and training planning system, and people-friendly promotion and rotation system; eligibility for comprehensive insurance benefits such as labor, national health and free group insurance policies; employee assistance programs such as wedding gifts, maternity subsidies, injury subsidies, birthday gifts, etc.; free meal provision; employee travel subsidies; annual employee health checks and consultations; contracted service providers offering employee discounts; employee uniforms; free indoor parking spaces, gym, etc.
III. Investor relations: We have set up a dedicated mailbox [email protected] for spokesperson, acting spokespersons, and investors, which is used for handling shareholder suggestions.
IV. Supplier relationship: We have maintained a good relationship with suppliers.
V. Rights of stakeholders: Sufficient information is provided to financial institutions and creditors, and communication channels are provided to employees. Relevant information and announcements are disclosed in accordance with the regulations of the competent authority, so that stakeholders have sufficient information to make decisions to further protect their rights and interests.	No significant differences

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Implementation Status
Yes	No	Summary
		VI. Status of directors' continuing education: Our directors have relevant practical experience and expertise. We pay attention to relevant regulatory information, and provide relevant training courses to directors from time to time based on our actual needs to strengthen their corporate governance functions. All directors reached their target hours of continuing education in 2025. Please refer to page 62-63 of the annual report for the status of directors' continuing education. VII. Implementation of risk management policies and risk measurement standard: The implementation of internal controls and various management regulations is decided by the board of directors to actively avoid investments in risky businesses. Additionally, various insurance policies and contracts are in place to compensate for potential losses to the company's assets, employees, and third parties. For further details on the implementation, please refer to the risk analysis and assessment in this annual report. VIII. Implementation of customer service policy: We abide by the contracts signed with customers and related regulations to ensure their rights and interests and provide good service quality at all times. IX. The purchase of directors liability insurance is shown in the table below, which has been reported to the board on August 4, 2025:
		Insured	Insurance company	Insurance amount	Insurance period
		All directors and officers	Fubon Property and Casualty Insurance	US$5 million	2025.08.01~2026.08.01
		9. Company improvements in corporate governance based on the assessment items stipulated in the Corporate Governance Evaluation Results issued in the most recent year by the Corporate Governance Center of the TWSE, and priority measures for items requiring further improvement. (Companies not in the list to be evaluated are exempted from reply.): (I) In the 2024 Corporate Governance Evaluation, we ranked in the top 21%-35%, moving up two tiers from the previous session. The 2025 results are currently pending disclosure. (II) Improvement to the results of the Company's 12th (2025) "Corporate Governance Evaluation": The company's Sustainability Report has been submitted to and approved by the Board of Directors. (1). #4.7 Has the company uploaded the English version of its sustainability report to the public information platform and company website? (2). #1.6 Whether the company convened its Annual General Meeting by the end of May?

2.3.4 Operations of the Remuneration Committee :

The main duties of the Remuneration Committee are to formulate and regularly review the systems and standard for the performance and remuneration of directors and officers, as well as their remuneration. At the same time, the Remuneration Committee should consider the following principles when conducting evaluations: Company remuneration should comply with relevant laws and be sufficient to attract outstanding talents. Performance evaluations and remuneration for directors and managers should reference industry norms and consider factors such as time commitment, responsibilities, achievement

of personal goals, performance in other positions, remuneration of peers in similar roles in recent years, as well as the achievement of short-term and long-term business goals, the financial condition of the company, and the rational connection between individual performance, company performance, and future risks. Directors and managers should not be incentivized to engage in behaviors that exceed the company's risk appetite in pursuit of remuneration. The proportion of short-term performance-based remuneration and the timing of partial variable remuneration for directors and senior managers should be determined based on industry characteristics and the nature of the company's business.

In order to improve the remuneration system for directors and officers and evaluate whether they receive reasonable remuneration for their business performance, the board has approved the organizational charter of the Remuneration Committee to establish the Committee. Currently, the three committee members are independent directors, and Director Yi-Jing Lin is elected as the convener. The Committee assesses the remuneration policies and systems for directors and officers from a professional and objective perspective, and offers recommendations to the board as reference for decision-making.

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Current Members of the Compensation Committee

2025.04.07

Title	Qualifications Name	Professional qualifications and experience	Independence	Number of other public companies in which the member also serves as a member of their Remuneration Committee
Independent Director (Convener) (Note 1)	Yi-Ching Lin	Please refer disclosed information about director qualification and independence.	1. Not an employee of the Company or any of its affiliates.
2. Not a director or supervisor of the company or any of its affiliates.
3. Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of one percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings.
4. Not a manager in (1) or not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of personnel in (2) and (3).
5. Not directors, supervisors, managers, or shareholders holding more than 5% of shares of a specific company or organization that is in financial or business dealings with the Company.
6. Not a majority of the Company's director seats or voting shares and those of any other company are controlled by the same person: a director, supervisor, or employee of that other company.	3
Independent Director (Note 2)	Yu-Wen Liang			-
Independent Director (Note 3)	Ming-To Yu			-

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Title	Qualifications Name	Independence
Independent Director (Note 4)	Chen-Ghu Tsao	7. Directors, supervisors or employees of other companies or institutions that are not the same person or spouse as the chairman, president or equivalent positions of the Company.
8. Not directors, supervisors, managers, or shareholders holding more than 5% of shares of a specific company or organization that is in financial or business dealings with the Company.
9. Not a professional individual who, or an owner, partner, director, supervisor, or president of a sole proprietorship, partnership, company, or institution that, provides auditing and commercial, legal, financial, accounting services or consultation that does not exceed NT$500,000 in remuneration over the last two years to the Company or to any affiliate of the Company, or a spouse thereof.
10. Not having a marital relationship, or a relative within the second degree of kinship to any other director of the Company.	1

Note 1: Yi-Ching Lin: Resigned as an Independent Director of Control Technology Co., Ltd. at the end of March 2026.
Note 2: Yu-Wen Liang: Ipso facto dismissed as Independent Director of Control Technology Co., Ltd. on March 27, 2026.
Note 3: Ming-To Yu: Resigned as Control Technology's independent director in Feb. 2025.
Note 4: Chen-Ghu Tsao: Appointed as Independent Director of Control Technology Co., Ltd. in June 2025, and ipso facto dismissed on March 27, 2026.

2. Information on the operations of the Remuneration Committee

(1) The Company’s Remuneration Committee consists of three members.
(2) The term of office of the current members: From June 20, 2023 to June 19, 2026.
(3) The Remuneration Committee met three (A) in 2025, and the qualifications and attendance of the members are as follows:

2025.01.01~2025.12.31

Title	Name	Attendance in Person (B)	Attendance Rate (%) (B/A)(Note)	Remarks
Convener	Yi-Ching Lin	3	100.00	Reelected on 2023.06.20
Committee member	Yu-Wen Liang	2	66.67	Newly elected 2023.06.20
Committee member	Chen-Ghu Tsao	1	100.00	Newly elected 2025.05.05

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Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%) (B/A)(Note)	Remarks
Committee member	Ming-To Yu	1	0	100.00	Resign on 2025.02.12

Other disclosures :

I. If the board of directors did not adopt or amended the Remuneration Committee’s suggestions, please specify the meeting date, term, content of the proposal, resolution of the board of directors, and the Company’s response to the Remuneration Committee’s opinions : None.

II. For the resolutions of the Remuneration Committee, if any member expressed objections or had reservations, then the Remuneration Committee meeting’s date, term, content of the proposal, opinions of its members, and the handling of the opinions shall be indicated: None.

III. The discussions and resolutions of the Remuneration Committee are as follows :

Date Session	Content of proposal	Resolutions	Company's Response to the Committee Members' Opinions
2025.01.22
5th session
5th meeting	1. Approved the total allocated amount of 2024 employee remuneration.
2. Approved the proposal to allocate funds for special bonuses.
3. Approved the distribution of 2024 bonuses for managers..	Regarding the special bonus proposal, it was resolved to set aside a provision based on the estimated payout amount and submit it to the Board for approval. All other proposals were approved as presented.	Unanimous vote by all directors in presence.
2025.03.06
5th session
6th meeting	1. Approved the total allocated amount of 2024 employee and director remuneration.	Adopted without objection	Unanimous vote by all directors in presence.
2025.08.04
5th session
7th meeting	1. Approved the distribution of 2024 remuneration for directors.
2. Approved the distribution of remuneration for the juridical person directors of FSE Corporation.
3. Approved the proposal to sponsor managers’ degree programs for executive development.
4. Approved the proposal on managerial promotions and salary adjustments.	Adopted without objection	Unanimous vote by all directors in presence.

Note: The Company re-elected directors on June 20, 2023, and appointed all independent directors as members of the Remuneration Committee on the same day.

2.3.5 Information of members of the Nomination Committee and its operational status : Not applicable.

2.3.6 Sustainable Development implementation and deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for such deviations

Evaluation item	Implementation Status			Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary description
1. Does the company establish exclusively (or concurrently) dedicated units to implement sustainable development, and does the Board of Directors appoint executive level positions with responsibility for sustainable development to supervise the status of the implementation to the Board of Directors?	✓		In 2022, the Company established a dedicated (or concurrent) sustainability unit, with the President serving as the Chairperson. The unit comprises teams focused on Economic, Social, and Environment, Health, and Safety pillars, with members appointed from various departments. These teams are committed to implementing initiatives in corporate governance, environmental sustainability, and social welfare. All relevant data is compiled into a Sustainability Report published at least once a year. Furthermore, work plans and implementation progress related to sustainable development are reported to the Board of Directors. The Board reviews these reports, raises inquiries as appropriate, and provides guidance when necessary to ensure effective execution.	No significant differences
2. Does the Company evaluate the risk of environmental, social and corporate governance issues related to business operations according to the material principle and establish risk management policies or strategies?	✓		The company conducts risk assessments on environmental, social, and corporate governance issues of concern to stakeholders, following the principle of materiality. The scope of the risk assessment is primarily focused on the Company's operational locations in Taiwan. Relevant risk management policies and strategies have been established (as detailed in Appendix 1). For more information, please refer to pages 12 and 42 of the 2024.	No significant differences
3. Environmental Issues (I) Has the Company set an environmental management system designed to industry characteristics?	✓		(I) 1. The company has established relevant operational control measures for environmental protection, and obtained ISO 14001 environmental management system certification, which is continuously audited externally annually. 2. The company Conduct greenhouse gas inventory every year in accordance with ISO14064-1 standards, track the results and publicly disclose them in the sustainability report and the company's official website (https://www.contrel.com.tw/csr_esg.php), and continue to track according to the short, medium and long-term carbon reduction goals set. 3. The company has also implemented relevant energy-saving and waste reduction measures and promotes and encourages employees to participate in the classification and recycling of household waste, fulfilling its corporate social responsibility obligations.	No significant differences
(II) Is the company committed to improving energy efficiency and utilizing low environmental impact renewable materials?	✓		(II) 1. The Company enhances energy efficiency during the machine design phase by selecting lightweight power transmission components and high-efficiency power supply units. Design improvements further reduce electricity and gas consumption, thereby lowering operational carbon emissions.

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Evaluation item	Implementation Status
	Yes	No	Summary description
			2. The company has commissioned qualified contractors to recover and treat various recyclable waste and has requested our suppliers to use reusable packaging materials and containers to reduce our environmental impact during production activities.
3. The company properly classifies, recycles, and entrusts qualified waste disposal services to handle waste management operations, thereby reducing the environmental impact of its operations.
4. The company sets annual energy-saving targets and formulates relevant improvement plans each year to enhance energy efficiency.
5. The information units donated the retired laptop/desktop computers to the ASUS Foundation and participated in the "Recycled Computer Digital Cultivation Program", so that the retired computers can be recycled and reused to create good cycles of digital opportunities.
(III)Does the Company evaluate the current and future potential risks and opportunities of climate change and take corresponding measures for climate related issues?	✓		(III) The company assesses potential future risks and opportunities and plan inventory scheduling based on the Sustainable Development Roadmap announced by the Financial Supervisory Commission for publicly traded or OTC firms. In the early phase, we improve the efficiency of resources utilization by reducing water and electricity consumption, which reduces the operating costs as our response measures, for further details, please refer to Attachment 2.
(IV)Does the Company collect and calculate relevant data on greenhouse gas, water consumption and the total weight of waste over the past two years and set policies for energy saving and carbon emission reduction, greenhouse gas reduction, water consumption reduction and other waste management?	✓		(IV)
1. The company optimizes and rationalizes energy consumption through its factory energy management system (FEMS), which monitors parameters such as chilled water temperature in the air conditioning system, cooling water temperature, operating time of the HVAC system, and the status of air compressors. Various energy-saving and carbon-reduction improvements have been actively implemented, including replacing fixed-speed air compressors with variable-speed models, installing inverters on central cooling tower motors, adding inverters to MAU air handling units in cleanrooms, and equipping cooling tower motors in independent HVAC systems with inverters. These measures aim to enhance energy efficiency and achieve the company’s energy-saving and carbon-reduction goals.
2. The company proactively conducts annual greenhouse gas inventories that exceed regulatory requirements. These inventories undergo external verification to ensure the adequacy of our assessments and to identify optimal energy-saving opportunities. To reduce electricity consumption, we implement various mitigation measures, such as installing variable frequency drive systems for independent air-conditioning cooling water motors and replacing

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Evaluation item	Implementation Status	Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
Yes	No	Summary description

Promotion schedule	Promotion objectives
Short-term (1-2 years)	We have set an annual energy-saving target to reduce electricity consumption by 0.5%, using the electricity-to-revenue ratio from the previous year as the baseline.
Medium to long term (3-5 years)	We have set a mid-to-long-term energy-saving target to achieve a cumulative 2% reduction in electricity intensity, using 2024 revenue-based electricity consumption as the baseline.
3. In terms of GHG emissions
GHG emissions for the past two years range as follows:
2024: Information about Nanke and Shugu plants, Kaohsiung/Taichung/Zhubei Office
2025: Information about Nanke plants, Kaohsiung/Taichung/Zhubei/Hsinchu Office
Year	Diredt Scope1 (metric tons of CO2e)	Diredt Scope2 (metric tons of CO2e)
2025	304.26	1,932.25
2024	333.94	1,808.37
Management explanation: In 2025, our company's total greenhouse gas emissions amounted to 2,503.04 metric tons of CO2e. Due to adjustments in the 2025 inventory boundary, specifically the removal of the Shugu Plant and the addition of the Hsinchu Office, this represents a 27% reduction compared to the base year (2022, which recorded 3,432.28 metric tons of CO2e). We remain committed to seeking optimal energy-saving and improvement solutions to achieve our short-term goal of a 1% reduction in total carbon emissions compared to the 2024 baseline, aiming to minimize our environmental impact year by year.
4. In terms of water resources management:
Water consumption in the last two years
Year	Total water consumption (cubic meters)
2025	24,282
2024	22,106

Evaluation item	Implementation Status	Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
Yes	No	Summary description

Year	Hazardous waste (metric tons)	Non-hazardous waste (metric tons)
2025	0.30	19.89
2024	0.00	19.53

4. Social Issues (I) Does the Company set related management policies and procedures in compliance with regulations and internationally recognized human rights treaties?	✓

Evaluation item	Implementation Status			Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary description
			blood type, or past membership in a labor union is strictly prohibited during recruitment and actual work. Discrimination is also prohibited in terms of salary, promotion, rewards, training opportunities, and retirement. The company's corporate governance human rights policy aims to prevent any violation of human rights, ensuring that all current employees receive fair and dignified treatment. Specific measures for human rights assessment and risk mitigation include providing a safe working environment, eliminating discrimination and ensuring equal job opportunities, prohibiting child labor, and preventing forced labor to maintain physical and mental balance. The company has also established the "Management Measures for the Prevention and Control of Unlawful Workplace Harassment" to prevent illegal infringements against employees by employers, supervisors, colleagues, service recipients, or other third parties during work and to conduct health promotion and advocacy programs. Relevant policies and procedures are disclosed in Chapter Five on labor-management relations.	regulations. In the event of violation of relevant regulations, we may termination the collaboration. Our contracts with suppliers also emphasize the policy terms of corporate social responsibility.
(II) Does the Company set employee benefit measures, including but not limited to remuneration, leave and other benefits and reasonably reflected the business performance or results in the employee remuneration?	✓		1. We have formulated a reasonable salary and remuneration policy in accordance with the Labor Standards Act, and distribute performance bonuses and employee remuneration on time based on the status of our operation. We regularly hold employee-employer meetings to understand employees' needs and protect their rights and interests. We have established an employee welfare committee, which holds meetings on a regular basis.
2. We value workplace diversity and equality. In 2025, female employees accounted for 23% of our workforce. Among the managerial positions above the Section level, 12% was female. For other employee welfare measures, please refer to the description of the "Labor-Management Relations of the annual report.
(III) Does the Company provide employees with a safe and healthy working environment, with regular safety and health training?	✓		We provide a safe and healthy work environment:
1. In 2025, the company achieved zero occupational accidents. During the year, we applied for and successfully obtained the 'Safe Workplace' certification. To further enhance emergency response capabilities and life-saving skills, we conducted hands-on CPR and AED training for both management and staff. These initiatives demonstrate our high priority on workplace safety and our long-term commitment to a secure working environment.
2. In 2025, the number of fire incidents was 0. We conduct annual fire safety drills and have installed fire alarm systems and emergency smoke exhaust equipment that comply with public safety and fire safety standards. These systems have passed inspections by the relevant authorities.
3. The entire factory is equipped with a video surveillance system to protect the personal safety of employees.
4. Measures to Provide a Healthy Work Environment:
(1). Specialized Care and Assistance

Evaluation item	Implementation Status
	Yes	No	Summary description
			a. Health Care for New Employees: A health care mechanism is activated upon onboarding. Health risk assessments and guidance are provided based on health examination reports.
b. Female-Friendly Workplace: Implementation of a maternity protection system, offering suitable job arrangements and regular follow-ups for pregnant employees to create a supportive work environment.
(2). Establishment of Employee Assistance Mechanisms
a. Friendly Workplace: A dedicated channel for workplace bullying complaints is set up to ensure employees’ psychological safety.
b. Healthy Workplace: Occupational health nurses proactively provide workplace care and assist with health or psychological stress-related issues.
5. Health Management and Education System:
(1). Regular Health Checkups and Risk Assessments
a. Annual health checkup reports are compiled and combined with health questionnaires (covering overload, ergonomics, maternity, and unlawful infringement) for comprehensive risk assessment.
b. A health database is established for individual health risk analysis using both health reports and questionnaires.
c. Occupational physicians and nurses provide follow-up health guidance and care to enhance employee health awareness.
(2). Regular Health Education
a. Multiple health seminars are held annually, covering topics such as developing health-promoting behaviors, relieving work fatigue (e.g., stretching and myofascial release techniques), prevention of workplace psychological violence, and mental health promotion. Other topics include prevention of the “three highs” (high blood pressure, high blood sugar, high cholesterol), exercise, and mental well-being.
b. Workplace health promotion activities are organized to strengthen employees’ self-health management abilities.
6. Obesity and “Three Highs” Prevention Measures and Results:
To proactively address employee obesity and “three highs” issues, the company continuously promotes diverse health programs to encourage good lifestyle and exercise habits.
(I)Health Challenge Activities:
Regular weight and fat reduction activities are held to motivate employee participation. For example, a company-wide weight loss competition resulted in a total weight reduction of over 200 kg and body fat reduction exceeding 170%, not only boosting participation but also fostering a healthy and competitive culture among colleagues.
(II)Physical Fitness Tests and Health Consultations:

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Evaluation item	Implementation Status					Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary description
			Fitness tests help employees understand their health status, with follow-up improvement suggestions such as exercise prescriptions, dietary advice, and health tracking. This effectively enhances employees' motivation and initiative for personal health management.(III) Complementary Health Seminars and Health Education Campaigns:During activity periods, seminars on preventing the "three highs" and informational health education content are provided to help employees transform knowledge into actionable steps, achieving comprehensive health management.The company is committed to creating a safe and healthy work environment by implementing a comprehensive health management system, fostering a friendly workplace, and providing regular health education. These efforts aim to enhance employees' health awareness and self-management capabilities. Through concrete measures such as weight loss competitions, health check-up follow-ups, and wellness seminars, the company effectively prevents and addresses issues related to obesity and the "three highs," demonstrating its dedication to employee health and well-being.
(IV)Has the Company established effective career development training plans?	✓		We arrange direct supervisors of employees and the personnel units to maintain communication with our employees. We organize occupational training courses based on employees' work needs and career planning from time to time, and encourage them to participate in management training and join internal and external training for specializations and personal development.Information on 2025 training is shown in the table below:
			Items	Hours of Training	Person-Time	Training Expenses (thousand NT$)
			Training of professional competence	4,214.55	1,590	435
			General knowledge	8,603.7	2,988	137
			Training of new hires	422.17	120	0
(V)Does the Company comply with the regulations and international standards in the customers' health, safety and privacy, marketing and labeling of its products and services and establish customer rights protection policies and appeal procedures?	✓		Since the introduction of the ISO9001 International Quality Management System in 2007, our company has continuously adjusted the overall quality demands and production and sales trends to meet the requirements of quality management reforms and innovations needed in the changing times. With the transition to the ISO9001:2015 version of the quality management system, an integrated management system (comprising quality management system, environmental/safety management system) has been implemented since 2017. Our company has obtained verification for ISO9001-2015 version, ISO14001-2015 version, and OHSAS 18001-2007

Evaluation item	Implementation Status
	Yes	No	Summary description
			version, aiming to consistently provide products and services to meet customer needs and legal requirements. We advocate for a confidentiality agreement on customer business information to all business units, and sign "NDA Confidentiality Agreements" with specific customers to strengthen cooperation. Additionally, an email service platform is set up on the company's external website, with sales personnel responsible for handling customer complaints and grievances, in order to timely understand customer needs and expectations, and continuously improve products and services to achieve the goal of sustainable business operation and protect customer rights and interests.
(VI)Does the Company establish supplier management policies and request suppliers to comply with environment, occupational safety and health or labor human rights related regulations and the status of implementation?	✓		Our supplier management policy is formulated in accordance with the ISO standards, and the procurement agreements, confidentiality agreements and contractor management letter of commitment are signed, and supplier assessment is carried out regularly. However, we have added clauses specifying that in the event of violation which has a significant impact on the environment and the society, we may terminate or cancel the contracts at any time.
The management approach is as follows:
(1) Supplier Evaluation:
(1-1) Our suppliers have successfully passed evaluations and are selected in accordance with our Ethical Corporate Management Best Practice Principles. All suppliers must comply with our 'Supplier Code of Conduct,' which requires them to minimize adverse impacts on the community, environment, and natural resources during the manufacturing process, while simultaneously ensuring public health and safety.
(1-2) Local suppliers are required to register changes in business categories.
(1-3) Priority is given to suppliers certified with ISO 9001 Quality Management System.
(1-4) Preference is given to localized suppliers to support stable economic development and job creation.
(2) Supplier Auditing: Auditing plans are formulated, and regular on-site assessments and document reviews are conducted annually according to the "Supplier Management Regulations."
(3) Supplier Contracts:
(3-1) Upon confirmation of collaboration, suppliers sign "Procurement & Confidentiality Agreements" to maintain long-term relationships.
(3-2) Suppliers sign "Contractor Management Commitment" agreements to enhance workplace safety and hygiene.
(4) Supplier Training:
(4-1) E-management - Through an e-commerce platform, suppliers are trained to use the system, enhancing supply chain management efficiency and fostering

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Evaluation item	Implementation Status			Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary description
			closer relationships between the company and suppliers.
(4-2) "Quality Defect Forms" are issued for deficient suppliers, and permanent improvement measures are proposed based on root cause analysis. Procurement and quality control units continue to track improvement progress, collectively enhancing and ensuring technical quality and on-time delivery.
5. Does the Company prepare sustainability reports to disclose non-financial information of the Company with reference to the internationally accepted standards and guidelines? Has the aforesaid reports received assurance or certification from a third-party accreditation institution?		✓	To achieve sustainable development, the company voluntarily compiled its first sustainability report for the year 2021 in 2022, focusing on practices and results related to corporate governance, business performance, environmental protection, and social participation. In 2025, the company continued the preparation of our 2024 Sustainability Report, which will be uploaded to the Market Observation Post System and our official website before August 31, 2025, as an important channel for communicating non-financial information. This also serves as a comprehensive review to enhance sustainability performance. The report was prepared with reference to the GRI, SASB, and TCFD standards and disclosed on both the public information observatory and the company’s official website. In the future, the company will apply for third-party verification to obtain an assurance report.	Obtaining third-party verification is still under assessment. No significant difference.
6. If the Company has established its sustainable development principles based on Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, please describe the Company’s operational status and differences from the principles :
The board approved the formulation of the "Sustainable Development Best-Practice Principles" on November 4, 2022. In the future, we will take into account the Company's condition, external environment and regulatory requirements to put the Principles into practice step by step.
VII. Other important information for facilitating the understanding of sustainability and its implementation:
(I) Social welfare and human rights (employee rights and interests):
1. We have formulated the "Work Rules" based on the Labor Standards Act and relevant laws and regulations, which stipulate the provisions for protecting employees' and applicants' rights and interests. We have also formulated the "Measures for Grievances and Punishment Against Sexual Harassment" to protect employees' right to work.
2. New hires will undergo education and training sessions on the day when they report to their work, so that they can understand the current work standards to protect their rights.
3. We participate in the "Youth Employment Flagship Program" organized by the Workforce Development Agency to help recent graduates to quickly adapt to the industry and expand their professional skills for better competitiveness in the future.
4. Employees with disabilities are employed in accordance with the People with Disabilities Rights Protection Act.
5. Diverse and a wide range of employee social activities (such as ball games, charity fundraising, etc.)
6. To fulfill our corporate social responsibility, we incorporate the purchase of products from charitable organizations and local agricultural produce into our annual corporate events, maintaining our care for vulnerable groups and contributing our modest share to society.
(II) Safety and health:
1. We have carried out supervision and management operations in accordance with the provisions of the Occupational Safety and Health Act.
2. Our industrial safety management regulations: Our employees are required to go to training for new hires and other on-the-job training sessions. Dangerous machinery and equipment (such as stackers, cranes, etc.) can only be operated by those who are certified.
3. Employees and contractors entering the premises are required to undergo pre-job training before accessing the work areas inside the factory.

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Evaluation item	Implementation Status
	Yes	No	Summary description
4. Workplace Environmental Monitoring: To ensure worker safety and health and prevent occupational accidents, we conduct comprehensive monitoring of the working environment twice a year. This process includes planning, sampling, monitoring, and analysis to evaluate exposure levels. By systematically assessing the workplace, we protect our employees from hazardous substances and provide a healthy and comfortable working environment.
5. Subject to Article 32 of the Occupational Safety and Health Act and the Occupational Safety and Health Education and Training Rules. Make employees aware of the importance of safety and health, understand the general condition of the work environment, occupational hazards, laws and regulations related to occupational safety and health, and the correct use of various safety and health protective equipment, so as to prevent occupational accidents and ensure workers' safety and health.
6. The company implements various procedures to successfully obtain ISO 45001 Occupational Health and Safety Management System certification each year, including:
(1). Establishment of management system standards: Confirming the requirements of ISO 45001 standard for Occupational Health and Safety Management System, including occupational health and safety policies, objectives, and risk assessment.
(2). Documentation preparation: Preparation of necessary documents and records to demonstrate the effectiveness of the system.
(3). Personnel education and training: Employees undergo relevant training and guidance on the Occupational Health and Safety Management System to ensure understanding of system requirements, enhance safety awareness, increase participation in the management system, and ensure correct implementation methods.
(4). Risk assessment: Assessing, managing, and controlling potential hazards in the workplace to ensure employee safety and health during operations.
(5). Internal audits: Conducting internal cross-checks before formal verification to identify potential issues within the organization, initiate improvements, and enhance employees' awareness of the management system.
(6). Selection of verification agency and verification: Select a qualified verification institution to conduct verification based on the nature of our company's operations and obtain certification.
7. Please refer to 5.5 Labor Relations of the annual report for other protection measures for work environment and personal safety of employees.

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Appendix 1

Major Issues	Risk Assessment Items	Risk Management Policies or Strategies
Environmental	Climate Change	1. Proactively implement the ISO 14064-1 Greenhouse Gas (GHG) inventory system ahead of regulatory requirements and obtain external verification statements. Utilize this system for annual inventory of the company's emission sources and establish reduction plans to achieve energy-saving and carbon-reduction goals. 2. Establish emergency contact networks and real-time notification systems to monitor personnel safety and commuting conditions during extreme weather events. Implement flexible attendance adjustments or remote work options to ensure employee safety and business continuity. 3. Conduct climate risk assessments for critical raw material and component suppliers. Establish diversified supply sources to avoid disruptions caused by disasters in a single region, while increasing safety stock levels to support emergency demands.
Social	Environmental Health and Safety	1. Employ full-time "Occupational Safety and Health Managers" and "Occupational Safety and Health Officers" as well as "Occupational Health Service Medical Personnel". 2. Obtain ISO45001 certification for Occupational Health and Safety Management Systems. Through this system, establish, implement, maintain, and continuously improve occupational health and safety performance, effectively preventing occupational accidents and promoting worker safety and health. 3. Obtain ISO14001 certification for Environmental Management Systems. Utilize the environmental management system to regularly identify environmental regulations, proactively identify potential risks, and avoid violations of regulations. 4. Conduct regular fire drills and occupational safety education and training annually to cultivate employees' emergency response and self-safety management capabilities.
	Supply Chain Management	1. Gradually shift procurement toward digital systems and seek cooperation with high-tech, highly cooperative suppliers. Continuously evaluate and optimize management practices annually, utilizing digital management to fully monitor supplier performance and enhance supply chain management efficiency. 2. For critical raw materials and components, evaluate supply source concentration and implement multi-supplier strategies to reduce dependence on a single region or vendor.
	Talent Recruitment & Compensation and Benefits	1. Establish clear, equitable, and legal selection and incentive processes to attract external talent and retain internal talent. 2. Participate in cultivation and technical cooperation projects with government agencies, legal entities, and academic institutions to jointly cultivate industry talent.

Major Issues	Risk Assessment Items	Risk Management Policies or Strategies
Governance	Information Security	1. To mitigate the risk of cyber attacks, we employ a defense-in-depth approach, ranging from gateway firewalls to endpoint protection. Each stage of defense is tailored to block intrusions and viruses, with dedicated firewalls protecting core servers.
2. To mitigate the risk of cyber attacks, we employ a defense-in-depth approach, ranging from gateway firewalls to endpoint protection. Each stage of defense is tailored to block intrusions and viruses, with dedicated firewalls protecting core servers.
3. To mitigate the risk of cyber attacks, we employ a defense-in-depth approach, ranging from gateway firewalls to endpoint protection. Each stage of defense is tailored to block intrusions and viruses, with dedicated firewalls protecting core servers.
4. Establishing a cycle for computer information systems, we define rules as the basis for cybersecurity enforcement and audits. Implementing ISO 27001 certification guarantees and demonstrates the organization's commitment to information security.
	Operational Performance	1. Committed to providing long-term returns to shareholders by enhancing operational efficiency, solidifying existing industrial foundations, and accelerating the deployment in new industries to achieve sustainable development goals.
2. Define clear objectives and seize market opportunities to drive corporate growth.
3. Utilize diversification and flexibility to expand corporate advantages and optimize cost-effectiveness.
4. Avoid developing single products or industries, or over-concentrating on a limited customer base, which can lead to low adaptability due to regional economies, government policies, and business cycles.
5. Avoid a lack of transparency regarding operational dynamics and development trends, which prevents gaining the favor of investors.
	Stakeholder Communication	1. To prevent misunderstandings and mitigate operational or litigation risks arising from differences between stakeholders' perspectives and the company's stance, an annual analysis of significant stakeholders and their key concerns is conducted.
2. Various communication channels are established to actively engage stakeholders and reduce confrontation and misunderstandings. An investor mailbox is set up, managed by spokespersons and proxies responsible for handling and responding to inquiries.

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Appendix 2

Climate change risk
Governance Unit	The company has established a "Sustainability Implementation Committee" to manage climate change risks and assess opportunities, integrating daily management activities related to climate change and energy issues. According to the company's risk management system, relevant issues are regularly reported to the Sustainability Implementation Committee for evaluation and approval of mitigation and adaptation measures by committee members. The Board of Directors follows the principle of convening meetings at least quarterly, with at least one annual discussion on the progress of the Sustainability Implementation Committee and related issues.
Risk and Opportunity Category	Business: Changes in supply and demand structures affect product and service mechanisms, such as climate-related disasters impacting market supply and demand strategies. Restricting any actions that may exacerbate adverse effects of climate change and promoting climate change adaptation. Additionally, measures such as future carbon emissions control.Finance: Leading to increased operational costs for the company.
Strategy	In response to the short-, medium-, and long-term environmental impacts caused by climate change and other related environmental issues, we are committed to continuously innovating and developing energy-saving products to achieve our goals of environmental protection and carbon reduction.
Risk Management	1. Conduct climate-related risk and opportunity identification on a regular basis or in response to significant events.2. Quantify assessments to determine if they lead to increased operational costs and develop response strategies proactively.3. Incorporate into the company's risk management and ISO 14001 management processes.
Indicators and Targets	1. Achieve short-term, medium and long-term greenhouse gas emission reduction goals for the factory.2. Achieve a reduction in energy consumption compared to the previous year.3. Evaluate increasing the proportion of renewable energy usage.
Carbon Pricing Basis	Our manufacturing process generates no exhaust gas or wastewater. Carbon emissions primarily stem from general electricity consumption during operations; emissions produced by power companies during electricity generation are categorized as indirect emissions from the daily operations of the company's various departments.Due to the nature of our industry, we do not utilize assembly-line production. Since our manufacturing processes are straightforward and involve no high-energy-consuming equipment, we currently prioritize comprehensive energy-saving advocacy over rigid internal carbon pricing to maximize management effectiveness.
Greenhouse Gas Inventory Plan	Please provide a detailed explanation of Item 1-1: Greenhouse Gas Inventory and Assurance Status.

2.3.7 Implementation of Climate-related Information

Item	Status of implementation
1. Describes the oversight of the Board and Management's, governance of climate-related risks and opportunities.	To effectively address the risks and challenges associated with climate change, the Company has established the Sustainability Promotion Committee as the highest governance body for climate-related management. The Committee is responsible for overseeing climate-related strategies and actions, monitoring stakeholder expectations and regulatory developments, and convening relevant functional departments to regularly identify and assess climate risks and opportunities. Based on these assessments, the Committee formulates responsive strategies and management objectives, which are submitted to the Board of Directors for review and approval.

In addition, the Sustainability Promotion Committee submits quarterly progress reports on the Company’s greenhouse gas (GHG) inventory to the Board, ensuring that carbon reduction initiatives align with the Company’s sustainability strategy and continue to enhance the effectiveness of climate governance. | | | |
| 2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the organization (short, medium, and long term). | The Company assesses the impact and expected timing of risk events based on its methodology for evaluating climate change-related risks and opportunities. The results of the identification of climate-related risks and opportunities are described as follows: | | | |
| | Category | Risk Item | Timming | Financial Impact |
| | Entity Risks | Extreme weather events | Short-term | Production disruptions may affect equipment delivery schedules, thereby impacting subsequent orders and revenue. |
| | Transition Risks | Carbon fee imposition | Short-term | Government-imposed carbon fees will increase operating costs. |
| | | Customer requirements for the use of renewable energy | Short-term | Purchasing renewable energy will raise operating costs. |
| | | Transition to low-carbon technologies | Short-term | Revenue may decrease if the company fails to meet customers' carbon emission management standards for suppliers. |
| | Climate Risk Response Measures: | | | |
| | Category | Opportunity Item | Financial Impact | |
| | Market | Obtaining certifications for sustainability-related management systems | Meeting customer expectations and creating collaboration opportunities | |
| | Resilience | Expanding the use of renewable energy and improving energy efficiency | (1). Install renewable energy equipment to reduce the demand for purchased electricity.
(2). Continuously replace high-energy-consuming equipment to lower the cost of purchased electricity. | |

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Item	Status of implementation
4. Describe how the process of identifying, assessing, and managing climate risk is integrated into the overall risk management system.	(1) Climate Risk Identification:
By adopting international climate and sustainability frameworks, the company progressively integrates these into internal operations starting with personnel training. We evaluate various risks that climate change may bring to the company, including extreme weather events, climate policy risks, and market transition risks. To the greatest extent possible, we utilize available scientific tools, data, and climate models to assist in identifying climate risks.

Item

Status of implementation

4. Describe how the process of identifying, assessing, and managing climate risk is integrated into the overall risk management system.

(1) Climate Risk Identification:

By adopting international climate and sustainability frameworks, the company progressively integrates these into internal operations starting with personnel training. We evaluate various risks that climate change may bring to the company, including extreme weather events, climate policy risks, and market transition risks. To the greatest extent possible, we utilize available scientific tools, data, and climate models to assist in identifying climate risks.

(2) Climate Risk Assessment:
We analyze the probability and impact of risks to evaluate the severity and potential consequences of climate risks. This includes considering risks under different climate scenarios, accounting for extreme cases and uncertainties. We also assess the potential impacts on company operations, sales, assets, supply chains, and brand image.

(3) Integration into the Risk Management System:
Incorporate climate risks into every stage of the enterprise's risk identification, assessment, control, tracking, and review processes.
Integrate climate risk management into corporate policies and procedures, and conduct training courses to ensure that personnel across all departments understand and participate in climate risk management in a timely manner.

(4) Establishment of Response Measures:
Formulate specific response strategies and measures based on assessment results, including risk transfer, risk avoidance, and risk mitigation.
Consider the synergy between climate risk management and other risk management measures to minimize risks to the greatest extent possible. |
| 5. If scenario analysis is used to assess the resilience to climate change risk, describe the scenarios, parameters, assumptions, analytical factors, and key financial impacts. | The Company has not yet utilized scenario analysis to assess its resilience in the face of climate change risks. |
| 6. If there is a transition plan for managing climate-related risks, describe the content of the plan and the metricsand objectives used to identify and manage physical and transition risks. | (1). Response Action: Continuously monitor climate-related information announced by the government.

(2). Physical Risk Part: Each unit shall, according to abnormal climate conditions, have responsible personnel conduct relevant operational preparations, implement response measures, and conduct inspection and confirmation. |

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Item	Status of implementation
7. If internal carbon pricing is used as a planning tool, the basis for price setting should be stated.	Currently, there is no internal carbon pricing mechanism planned. Besides awaiting further regulations or guidelines from government agencies, we aim to manage carbon risks effectively through system integration and analysis. We are moving towards a low-carbon transformation to mitigate the increasingly severe impacts of climate change and respond to stakeholders' demands for carbon information disclosure and management.
8. If climate-related targets are set, the activities covered, the scope of greenhouse gas emissions, the planning period, and the annual progress of achievement should be described; if carbon offsets or renewable energy certificates (RECs) are used to achieve the relevant targets, the source and quantity of carbon reduction credits or the quantity of renewable energy certificates (RECs) offset should be described.	Refer to 1-1 and 1-2 below.
9. GHG inventory and confirmation situation, Reduction Targets, Strategies, and Specific Action Plans.	Refer to 1-1 and 1-2 below.

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1-1 Greenhouse Gas Inventory and Confirmation Situation of the Company in the Last Two Years

1-1-1 Greenhouse Gas Inventory Information

GHG emissions emissions for the past two years range as follows:

2024: Information about Nanke Plant, Shugu Plant, Kaohsiung/Taichung/Zhubei Office

2025: Information about Nanke Plant, Kaohsiung/Taichung/Zhubei/ Hsinchu Office

Year Item	2025	2024
Direct Scope I (tons CO2e)	304.3	333.9
Energy Indirect Scope II (tons CO2e)	1,932.2	1,808.4
Other Indirect Scope II (tons CO2e)	266.5	294.0
Total carbon emissions (metric tons of CO2e)	2,503.0	2,436.3
Greenhouse Gas Emission Intensity (metric tons CO2e per NT$ million in revenue)	1.7565	1.8020

1-1-2 Greenhouse Gas Verification Information

The company conducted its first greenhouse gas inventory in 2023 for the year 2022. External verification has been carried out annually since, with verification statements obtained accordingly.

The confirmation information for the past two years is detailed in the table below.

Item\Year	2025	2024
Confirmation Explanation	External verification is scheduled for May 2026.	Total carbon emissions (metric tons of CO2e) : 2,436.3
Confirmation Scope	Nanke Plant, Kaohsiung/Taichung/Zhubei/ Hsinchu Office	Nanke Plant, Shugu Plant, Kaohsiung/Taichung/Zhubei Office
Confirmation Institution	PMC	PMC
Confirmation Criteria	ISO14064-1 : 2018	ISO14064-1 : 2018
Confirmation Opinion	Pending verification results	Obtained a verification statement issued by PMC

1-2 Greenhouse Gas Reduction Targets, Strategies and Specific Action Plans

Greenhouse Gas Reduction Plan
Time	Short-term Objectives	Medium and long term goals
	1-2 years	3-5 years
Carbon Reduction Targets	Set an annual energy-saving target to reduce electricity intensity by 0.5% (using the electricity-to-revenue ratio from the previous year as the baseline).	Set a mid-to-long-term energy-saving target to achieve a cumulative 2% reduction in electricity intensity, using 2024 revenue-based electricity consumption as the baseline.
Strategies and Specific Action Plans	• 2024 Goal Achievement & Results 1. Air Compressor Upgrade: Replaced fixed-speed air compressors with Variable Frequency Drive (VFD) models, successfully reducing energy consumption. 2. Cooling Tower Optimization: Installed inverters on central air conditioning cooling towers, achieving higher energy efficiency compared to fixed-speed motors. 3. Cleanroom System Enhancement: Added inverters to the MAU (Makeup Air Unit) systems in Class 1000 cleanrooms; data records confirm a measurable reduction in power usage.	1. Air Compressor Efficiency: Install pneumatic zero-loss drains on air compressor storage tanks to reduce electricity consumption by eliminating air leaks. 2. Cooling System Upgrade (Plant B): Install Variable Frequency Drive (VFD) control systems on the cooling pumps for two 200RT cooling towers at Plant B to optimize motor performance. 3. HVAC Optimization: Continuously review and optimize the operational efficiency of air conditioning systems through improved control strategies.
Strategies and Action Plans	• 2024 Goal Achievement & Results 1. Air Compressor Upgrade: Replaced fixed-speed air compressors with Variable Frequency Drive (VFD) models, successfully reducing energy consumption. 2. Cooling Tower Optimization: Installed inverters on central air conditioning cooling towers, achieving higher energy efficiency compared to fixed-speed motors. 3. Cleanroom System Enhancement: Added inverters to the MAU (Makeup Air Unit) systems in Class 1000 cleanrooms; data records confirm a measurable reduction in power usage.	1. Air Compressor Efficiency: Install pneumatic zero-loss drains on air compressor storage tanks to reduce electricity consumption by eliminating air leaks. 2. Cooling System Upgrade (Plant B): Install Variable Frequency Drive (VFD) control systems on the cooling pumps for two 200RT cooling towers at Plant B to optimize motor performance. 3. HVAC Optimization: Continuously review and optimize the operational efficiency of air conditioning systems through improved control strategies.

Greenhouse Gas Reduction Plan
Time	Short-term Objectives	Medium and long term goals
1-2 years		3-5 years
	4. Pump Efficiency Improvement: Installed inverters on cooling water pumps at Plant C, with verified energy savings.
5. Auto-Control Optimization: Enhanced the automatic VFD functions for four AHU (Air Handling Units) in Plant Area A.
The above energy-saving measures have been disclosed in the 2024 ESG Report.
● 2025 Energy Saving & Carbon Reduction Initiatives
1. Cooling System Upgrade (Plant B): Completed the evaluation for installing VFD control systems on two 200RT cooling water pumps; implementation is scheduled for 2026.
2. Lighting Retrofit: Continuous replacement of legacy factory lighting with energy-efficient LED fixtures.
3. Continuous Exploration: Actively identifying and assessing other feasible energy-saving solutions.	4. Equipment Retrofitting: Evaluate and replace legacy, high-consumption equipment with Level 1 energy-efficient models to maximize overall energy utilization.
5. Ongoing Exploration: Actively research and identify other feasible energy-saving solutions for continuous improvement.

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

Evaluation item	Implementation Status
	Yes	No	Summary
1. Establishment of Ethical Management Policies and Programs
(1) Does the Company establish the ethical management policy which is approved by the Board of Directors, and address its ethical management policies and measures and the committed implementation of such policies by the Board of Directors and the top management in its regulations and publicly available documents?	☑		(1). The board has approved the formulation of the "Ethical Corporate Management Best Practice Principles" on November 4, 2022. The Company's directors, officers, employees, mandates or significant controllers shall abide by the Company Act, the Securities and Exchange Act, regulations and laws related to OTC firms to put ethical management into practice. Our ethical management policy is also defined in our internal regulations, such as the "Employee Work Handbook", "Code of Ethical Conduct", etc. stating that obtaining undue benefits is prohibited, as a fundamental principle of conducting business with integrity.
(2). Prior to the appointment of new directors and managers, the Company not only disseminates the relevant laws and regulations regarding insider trading and internal shareholding of OTC and emerging stock companies, but also requires the signing of important integrity statements such as the "Undertaking of No Violation of Integrity Principles" and "Director Confidentiality Agreement." Moreover, for independent directors during the nomination and tenure, statements such as the "Statement of Nominee for Independent Director" and "Statement at the Time of Independent Director Appointment" are issued. The Company also prepares the "Checklist for Independent Director Appointment and Tenure" in accordance with regulations.	No significant differences
(2) Has the Company established a risk assessment mechanism against unethical conduct, and analyzed and assessed on a regular basis business activity within their business scope which are at a higher risk of being involved in unethical conduct, and establish prevention programs accordingly. The prevention programs shall at least include preventive measures against the conducts prescribed in Paragraph 2, Article 7 of the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies?	☑		(2) Our "Work Rules" stipulates that:
i. Employees are not allowed to take advantage of their positions to accept gratuity, gifts and kickbacks or to engage in other illegal activities.
ii. Employees shall not operate or work part-time in businesses that conflict with the interests of the Company.
iii. Research results during the job tenure shall not be handed over or sold to other companies or individuals.
iv. Employees have the obligation to safeguard the Company's trade secrets, no matter whether the secrets are within their scope of work.	No significant differences

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Evaluation item	Implementation Status			Differences from the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies and Their Reasons
	Yes	No	Summary
			We will add the "Procedures for Ethical Management and Guidelines for Conduct" to reinforce the implementation and prevent the occurrence of unethical behaviors. The formulation of comprehensive internal regulations on corporate governance and risk control will prevent unethical behaviors and create a work environment for sustainable development.
(3) Does the Company establish prevention programs to prevent from unethical conduct with clearly stipulated in the program regards to the implementation procedures, guidelines, disciplinary actions for violations, and reporting systems and review and modify the measurements periodically?		☑	(3) We conduct business activities based on the principles of fairness and ethics, and actively prevent unethical behaviors: The Employee Work Handbook also stipulates that employees are not allowed to take advantage of their positions to accept gratuity, gifts and kickbacks or to engage in other illegal activities. We also have formulated the "Reward and Punishment Management Measures", and we promote the philosophy of ethical management from time to time.	No significant differences. We will discuss the formulation of solutions as needed.
2. Implementation of Ethical Management
(1) Does the Company evaluate the ethical track record of whom it has business relationship with and include clauses of business conduct and ethics related in the business contracts?	☑		Before conducting business transactions, we first collect and assess the status of ethical management of the counterparty, and try our best to include ethical management into the contract terms or stipulate terms on ethics.	No significant differences. We will arrange internal and external education and training sessions on ethical management as needed.
(2) Has the Company established a dedicated ethical corporate management unit that reports the ethical management policy and programs to prevent unethical conducts directly to the Board of Directors on a regular basis (at least once a year)?		☑	We have not yet established dedicated (part-time) unit promoting corporate ethical management. However, the relevant responsibilities are within the job scope of various departments, and we spare no efforts in fulfilling our corporate responsibilities.
(3) Has the Company established and implemented policies that prevent conflicts of interests and provide appropriate channels for communication and complaint?	☑		Our Board Meeting Rules of Procedure stipulate a system for directors to recuse themselves from conflicts of interest. If any director or a juristic person represented by a 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. When the relationship is likely to prejudice the interests of the Company, the director may state his/her opinions and answer questions and may not participate in discussion or voting on that agenda item, and further, shall

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Evaluation item	Implementation Status			Differences from the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies and Their Reasons
	Yes	No	Summary
			enter recusal during discussion and voting on that item and may not act as another director's proxy to exercise voting rights on that matter.
(4) Has the Company established effective accounting and internal control systems to implement ethical corporate management, and did the internal audit unit, based on the results of assessment of the risk of involvement in unethical conduct, devise relevant audit plans and examined accordingly on the compliance with the prevention programs, or CPA was authorized to carry out the audit?	☑		We also have a rigorous accounting system and an independent dedicated audit unit, which regularly conducts various internal audits according to the annual audit plan. All final accounts are audited by certified accountants to ensure their fairness.
(5) Does the Company provide internal and external ethical conduct training programs on a regular basis?		☑	(5).
i. The Company's board consists of 11 directors (including 3 independent directors), the director in charge of corporate governance, the director of finance and accounting, and audit personnel. All of them have completed the required training hours on corporate governance, ethical management, risk management, and operational management in accordance with legal requirements during the fiscal year 2025, complying with the Corporate Governance Best Practice Principles.
ii. Prior to assuming office, all newly elected directors in this term were provided with relevant laws and regulations, as well as necessary precautions. They were also arranged to receive briefings on the company's operations and visit production lines to understand the company's operational status.
3. Implementation of the Company's whistleblowing system
(1). Does the company provide incentives and means for employees to report malpractices? Does the company assign dedicated personnel to investigate the reported malpractices?	☑		We have formulated evaluation measures and the "Reward and Punishment Management Measures". If there is any reason for employees to violate the ethical management regulations, the Personnel Appraisal Committee will review the reward and punishment matters and inform the related personnel of the content in a personnel order letter.	No significant differences. Will formulate rules as needed.
(2). Does the company have in place standard operating procedures for investigating and processing reports, as		☑	We have not formulated operating procedures and relevant confidentiality practices for the acceptance of requests for investigation

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Evaluation item	Implementation Status			Differences from the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies and Their Reasons
	Yes	No	Summary
well as follow-up actions and relevant post-investigation confidentiality measures?			of filed grievances. However, we take a confidential and rigorous approach in handling the cases and searching for evidence.
(3).Has the company provided proper whistleblower protection?	☑		The identity of whistleblowers and the content of grievances are kept confidential during the reporting process, and whistleblowers will not be improperly punished for reporting.
4. Information disclosure improvement
(1).Does the Company disclose relevant and reliable information regarding its ethical corporate management policies and their implementation on its website and the Market Observation Post System website of the Taiwan Stock Exchange?	☑		We disclose our" Ethical Corporate Management Best Practice Principles" on our website and the MOPS for shareholders' reference. We will continue to improve the disclosure of information on our website in the future.	No significant differences
5. If the Company has established its ethical corporate management code of practice pursuant to the Ethical Corporate Management Best-Practice Principle for TWSE/TPEx Listed Companies, please describe the Company’s operational status and deviations from the principles:
We have formulated the "Ethical Corporate Management Best Practice Principles", "Code of Ethical Conduct" which have been announced on the Public Information Observation System and the company's website.
6. Other important information to facilitate better understanding of the Company’s ethical corporate management (For example, the review and amendment of the Company’s Ethical Corporate Management Best Practice Principles): None.

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2.3.9 Other important information that may facilitate better understanding of the Company's corporate governance :

The company website features a "Corporate Governance Section," disclosing information related to corporate governance and updating the sustainability report annually.
The status of directors' continuing education in the most recent year up to the publication date of the annual report is as follows:

2025.12.31

Title	Name	Date	Organizer	Course name	Duration
Independent Director	Yi-Ching Lin	2025/4/1	CPA Associations R.O.C.(Taiwan)	Emerging Financial Crimes in Anti-Money Laundering: Trends, Case Studies, and Preventive Measures	3
		2025/6/11	TABF	Directors and Supervisors Corporate Governance Seminar	3
Independent Director	Yu-Wen Liang	2025/9/18	Securities & Futures Institute	Trends of Digital Technology and Artificial Intelligence and Their Risk Management	3
		2025/10/31	Securities & Futures Institute	2025 Insider Shareholding Transaction Compliance Seminar	3
Independent Director	Chen-Ghu Tsao	2025/7/9	TWSE	Cathay Sustainable Finance and Climate Change Summit Forum	6
		2025/7/25	Securities & Futures Institute	2025 Insider Shareholding Transaction Compliance Seminar	3
		2025/11/14	TCGA	The Digital Financial Revolution: Principles of Stablecoins and Trends in Blockchain Virtual Assets	2.5
		2025/12/5	TCGA	Legal Liability for Misstatements in Sustainability Information Disclosure (Greenwashing)	3
Director	Meta-Sequoia Investment Ltd. Representative:Su-Hsien Lin	2025/2/18	TCGA	How Boards of Directors Should Address 12 ESG Risk Issues	3
		2025/2/21	TCGA	Current Global Economic Situation	1
		2025/3/11	TCGA	Trump 2.0, the Death of Globalization, and Regional Conflicts	3
		2025/4/25	TCGA	Executive Compensation and ESG Performance System Design	3
		2025/11/11	TCGA	Applications of AI, Law, and Auditing	3
Director	Tongtai Machine & Tool Co., Ltd. Representative:Jun-Liang Kuo	2025/4/18	TCGA	Corporate Innovation Growth and Angel Investment	3
		2025/6/13	TCGA	Trump 2.0: Corporate Strategies for Global Tax Reform and Supply Chain Reorganization	3
Director	San Shin Co., Ltd. Representative: Cheng Yen	2025/6/11	TABF	Directors and Supervisors Corporate Governance Seminar	3
		2025/11/28	TCGA	Enhancing Organizational Resilience through Dual-Track Transformation: AI Governance and Sustainability Governance	3
Director	San Shin Co., Ltd. Representative: Hwa-Chou Yen	2025/6/11	TABF	Directors and Supervisors Corporate Governance Seminar	3
		2025/11/28	TCGA	Enhancing Organizational Resilience through Dual-Track Transformation: AI Governance and Sustainability Governance	3
Director	Jui Hsiu Investment Co., Ltd. Representative:Jui-Hsiung Yen	2025/7/9	TWSE	Cathay Sustainable Finance and Climate Change Summit Forum	6
		2025/8/22	CNAIC	2025 Taishin-Shin Kong Net-Zero Summit Forum	3
Director	Tsan Ying Investment Co., Ltd.	2025/6/11	TABF	Directors and Supervisors Corporate Governance Seminar	3

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Title	Name	Date	Organizer	Course name	Duration
	Representative:Weichung Ooi	2025/8/1	TCGA	Corporate Governance Officer Professional Training Program	3
Director	Se-Cheng-Lu Investment Ltd.
Representative: Lu Yen	2025/7/11	TWIOD	Cross-Generational Talent Management and Practical Adoption of IFRS S1/S2 Sustainability Standards	6
Director	Tsan-Jen Chen	2025/7/9	TWSE	Cathay Sustainable Finance and Climate Change Summit Forum	3
		2025/8/22	CNAIC	2025 Taishin-Shin Kong Net-Zero Summit Forum	3

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2.3.10 Internal Control System and Implementation Status

Statement on Internal Control: The electronic file is available on the Market Observation Post System (MOPS) under: Single Company / Corporate Governance/ Company Policies and Regulations/ Internal Control/ Internal Control Statement Announcement. URL: https://mops.twse.com.tw/mops/#/web/t06sg20
If CPA was engaged to conduct a special audit of internal control system, provide its audit report: None.

2.3.11 In the most recent year and up to the date of publication of this report, where the Company and its internal personnel were penalized according to laws or the Company had punished its personnel for violating the provisions of the internal control system, and the result of the penalty might have significant impacts on shareholders' rights or securities prices. Therefore, the content of the penalty, the major deficiencies and the improvements shall be stated: : None.

2.3.12 Major Resolutions of the General Shareholders' Meetings, and the Board of Directors' Meetings in the Most Recent Year and as of the Date of this Annual Report

Key resolutions from the shareholders' meeting on 2025/06/05 and their implementation:

Key Resolutions	Implementation
1. Adoption of the 2024 business report and financial statements.	Approved by resolution.
2. Adoption of the Proposal for Distribution of 2024 Profits	In accordance with the resolution of the shareholder meeting, cash dividends of NT$98,890,702 for shareholders were allocated, and July 9, 2025 was set as the book closure date, and the distribution was completed on July 30, 2025 (NT$0.6 per share).
3. Amendment of the "Articles of Incorporation"	The required registration with the competent authority has been completed, and related matters have been carried out in accordance with the amended Articles of Incorporation.
4. Formulation of the "Procedures for Engaging in Derivatives Trading"	The resolution has been approved and executed.
5. The issuance of Common Shares through Private Placement.
6. By-election for one independent director seat	Election result: Mr. Tsao, Chen-Ghu was elected as an independent director, and the change of registration was completed on June 10, 2025.
7. To lift the non-compete restrictions for current directors and their representatives.	Approved in accordance with the resolution.

Board of Directors resolution

Date	Meeting	Key Resolutions
2025.01.22	2025 Board Meeting
(10th meeting of the 10th session)	1. Approved the assessment of the independence and suitability and appointment of CPAs in 2025.
2. Approved the total allocated amount of 2024 employee remuneration.
3. Approved the distribution of 2024 bonus to managers.
4. Approved the application to banks for renewal of line of credit.
2025.03.06	2025 Board Meeting
(11th meeting of the 10th session)	1. Approved the total allocated amount of 2024 employee and director remuneration.
2. Approved the 2024 financial statements, consolidated financial statements and business reports.
3. Approved the 2024 annual profit distribution.
4. Approved the 2024 evaluation of the "effectiveness of internal control system" and the "Statement on Internal Control".
5. Approved the 2025 business plan.
6. Approved the amendment to the "Articles of Incorporation"
7. Approved the amendment to the "Procedures for Engaging in Derivatives Trading"
8. Approved the company's 2024 Private Placement of Common Shares expiration and no longer raising funds for issuance
9. Approved the issuance of Common Shares through Private Placement.
10. Approval of the By-election for One Independent Director Seat
11. Approved the list of independent director candidates.
12. Approved the lifting of the restrictions on the non-compete clause of current directors and their representatives.
13. Approved the date, time and venue for the 2025 annual general meeting and other relevant matters.
14. Approved measures to handle proposals from shareholders who have more than 1% of shareholding.
15. Approved the matters related to the nomination of shareholders with more than 1% in shareholding as independent directors candidates.
2025.05.05	2025 Board Meeting
(12th meeting of the 10th session)	1. Approved the Company's consolidated financial reports for the first quarter of 2025.
2. Approved the proposal to appoint an additional member to the Remuneration Committee.
3. Approved the application to banks for line of credit.
2025.08.04	2025 Board Meeting
(13th meeting of the 10th session)	1. Approved the Company's consolidated financial reports for the second quarter of 2025.
2. Approved the 2024 Corporate Sustainability Report.

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Date	Meeting	Key Resolutions
		3. Approved the application to banks for line of credit.
4. Approved the Promotion and Salary Adjustment Proposal of the Manager.
5. Approved the distribution of 2024 remuneration of directors.
6. Approved the compensation to the directors for serving as the legal representative of a subsidiary.
2025.11.07	2025 Board Meeting
(14th meeting of the 10th session)	1. Approved the Company's consolidated financial reports for the third quarter of 2025.
2. Approved the funding loans to subsidiaries.
3. Approved the amendment to the "Internal Control System – Payroll Cycle".
4. Approved the internal audit plan for the year of 2026.
5. Approved the application to banks for line of credit.
2026.02.04	2026 Board Meeting
(15th meeting of the 10th session)	1. Approved the assessment of the independence and suitability and appointment of CPAs in 2026.
2. Approved the total allocated amount of 2025 employee remuneration.
3. Approved the definition of the scope of non-executive employees of the Company.
4. Approved the appropriation of non-executive employees compensation for 2025.
5. Approved the distribution of 2025 bonus to managers.
6. Approved the application to banks for line of credit.
2026.03.06	2026 Board Meeting
(16th meeting of the 10th session)	1. Approved the total allocated amount of 2025 employee and director remuneration.
2. Approved the appropriation of non-executive employees compensation for 2025.
3. Approved the 2025 financial statements, consolidated financial statements and business reports.
4. Approved the 2025 annual profit distribution.
5. Approved the 2025 evaluation of the "effectiveness of internal control system" and the "Statement on Internal Control".
6. Approved the 2026 business plan.
7. Approved the amendment to the "Articles of Incorporation".
8. Approved the Re-election of Directors.
9. Approved the lifting of the restrictions on the non-compete clause of new directors and their representatives.
10. Approved the date, time and venue for the 2026 annual general meeting and other relevant matters.
11. Approved measures to handle proposals from shareholders who have more than 1% of shareholding.

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Date	Meeting	Key Resolutions
		12. Approved the matters related to the nomination of shareholders with more than 1% in shareholding as director (including Independent director) candidates.
13. Approved the application to banks for renewal of line of credit.
2026.03.20	2026 Board Meeting (17th meeting of the 10th session)	1. Approved the issuance price and related matters of the private placement of ordinary shares.

2.3.13 Written or Otherwise Recorded Dissenting Opinions Made by Directors or Supervisors Regarding Important Resolutions Made in Board of Directors' Meetings in the Most Recent Year and as of the Date of this Annual Report : None.

2.3.14 Resignation or Termination of Chairman, General Manager, Head of Accounting, Head of Finance, Head of Internal Controls, Head of Corporate Governance Officer and Head of R&D in the Most Recent Year and as of the Date of this Annual Report : None.

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2.4 CPA Service Fees:

Unit: NT$ in thousands

Accounting firm	Name of CPA	Audit period	Audit fee	Non-audit fee*
Deloitte & Touche	Xiu-wen Chen
Jui-Hsuan Hsu	2025/01/01 - 2025/12/31	3,780	1,050	4,830
Note				(1) Transfer pricing of audit fee of NT$200 thousand.
(2) NT$30 thousand for audit and attestation of dual-status business entities adopting the direct deduction method
(3) NT$80 thousand for XBRL public announcement and regulatory filing procedures
(4) NT$740 thousand for regulatory filing procedures and audit of for-profit enterprise income tax

2.4.1 If the Company changes its CPA firm and the audit fees paid for the year in which the change takes place are lower than those in the previous year, the audit fee reduction amount and the reason for the decrease in fees shall be disclosed: None.

2.4.2 If audit fees have decreased by over 10% compared to the previous year, the audit fee reduction amount proportion and the reason for the decrease shall be disclosed: None.

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2.5 Change of CPA:

2.5.1 Predecessor CPA: None.

2.5.2 Successor CPA: None.

2.5.3 Reply by predecessor CPA regarding Article 10, Subparagraph 6, Item 1 and Item 2-3 of Regulations Governing Information to be published in Annual Reports of Public Companies:

None.

2.6 The name and title of any Company Chairman, General Manager, and Officers of Finance or Accounting who have held positions at the appointed CPA firm or its affiliates in the past year shall be disclosed along with their tenure period at said CPA firm or affiliates:

None.

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2.7 Transfers and Pledges of Stock Equity by Directors, Managers, and Shareholders Holding over 10% of the Company's Shares in the Most Recent Year and as of the Date of Publication of the Annual Report

2.7.1 Changes in the equity of directors, managers, and major shareholders

Please refer to the Market Observation Post System > Individual Company > Changes in Shareholding / Securities Issuance > Shareholding Transfer Information Search > Post-Event Report of Changes in Insider Shareholdings

https://mops.twse.com.tw/mops/#/web/t116sb01

2.7.2 Stock transfers or Stock pledges with related parties

Please refer to the Market Observation Post System > Individual Company > Changes in Shareholding / Securities Issuance > Pledge / Release of Pledges by Insiders > Announcement of Pledge / Release of Pledges by Insiders

https://mopsov.twse.com.tw/mops/web/STAMAK03_1

2.8 Relationships of Related Party, Spouse, Kinships within the Second Degree among the Top Ten Shareholders:
2026.03.30 ; %

Name	Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Names and Relationship of Top 10 Shareholders who are Related Parties, Spouses or within Second-Degree of Kinship to Each Other
	Shares	%	Shares	%	Shares	%	Name	Relationship
C Sun Mfg., Ltd	20,000,000	10.82	-	-	-	-	None	None
C Sun Mfg., Ltd Representative: Mao-Sheng Liang	-	-	-	-	-	-
San Shin Co., Ltd.	12,723,750	6.88	-	-	-	-	San Shin Investment Co., Ltd Jui-Hsiung Yen Li-Hui Cheng Hsiu-Hui Lin Hui-Jen Yen	Same Chairman Second-degree relatives of the Chairman, Supervisor Spouse of the Chairman Second-degree relatives of the Chairman Second-degree relatives of the Chairman
San Shin Co., Ltd. Representative: Hwa-Chou Yen	377,373	0.20	333,344	0.18	-	-
San Shin Investment Co., Ltd.	6,995,858	3.79	-	-	-	-	San Shin Co., Ltd. Jui-Hsiung Yen Li-Hui Cheng Hsiu-Hui Lin Hui-Jen Yen Cheng Yen	Same Chairman Relatives of the Chairman, Supervisor Spouse of the Chairman Second-degree relatives of the Chairman Second-degree relatives of the Chairman
San Shin Investment Co., Ltd. Representative: Hwa-Chou Yen	377,373	0.20	333,344	0.18	-	-
Tongtai Machine & Tool Co., Ltd.	6,849,178	3.71	-	-	-	-	San Shin Co., Ltd. Hsiu-Hui Lin Hwa-Chou Yen Li-Hui Cheng Hui-Jen Yen	Director Spouse of the Chairman Relatives of the Chairman Relatives of the Chairman Relatives of the Chairman
Tongtai Machine & Tool Co., Ltd. Representative: Jui-Hsiung Yen	907,169	0.49	161,967	0.09	-	-
HSBC Bank (Taiwan) Limited in custody for Morgan Stanley & Co. International plc investment account	6,782,215	3.67	-	-	-	-	None	None
Jui Hsiu Investment Co., Ltd.	4,091,949	2.21	-	-	-	-	Hwa-Chou Yen Jui-Hsiung Yen Li-Hui Cheng Hui-Jen Yen	Second-degree relatives of the Chairman Spouse of the Chairman Second-degree relatives of the Chairman
Jui Hsiu Investment Co., Ltd. Representative: Hsiu-Hui Lin	161,967	0.09	907,169	0.49	-	-
Hui-Jen Yen	3,167,403	1.71	-	-	-	-	Jui-Hsiung Yen Hwa-Chou Yen Hsiu-Hui Lin Li-Hui Cheng	Second-degree relative Second-degree relative Second-degree relative Second-degree relative
Citibank Taiwan Limited in custody for UBS Europe SE investment account	3,007,442	1,63	-	-	-	-	None	None
Meta-Sequoia Investment Ltd.	2,991,327	1.62	-	-	-	-	Su-Hsien Lin	Spouse of the Chairman
Meta-Sequoia Investment Ltd. Representative: Jia-Hua Lin	506,052	0.27	1,659,909	0.90	-	-
Citibank Taiwan Limited in custody for Barclays Capital SBL/PB investment account	2,472,000	1.34	-	-	-	-	None	None

2.9 The number of shares of One Enterprise held by the Company, the Directors, Supervisors, Officers of the Company and the Enterprise directly or indirectly controlled by the Company.

2026.03.30; Units: shares; %

Investee Enterprise	Investment by the Company		Investments by the Directors, Supervisors, Officers, and Enterprise Directly or Indirectly Controlled by the Company		Total Shareholding
	Shares	%	Shares	%	Shares	%
Cyber Laser Taiwan Co., Ltd.	2,000,000	33%	2,000,000	33%	4,000,000	66%

Note1: Investment under the Equity method adopted by the Company.
Note2: The Company was abolished on May 29, 2023.

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III. Capital Raising

3.1 Capital and Shares

3.1.1 Source of Capital

History

2026.03.30
Unit: thousand shares; NT$ thousand

Year & Month	Issue Price (NT$)	Authorized Capital		Capital Stock		Remarks
		Shares	Amount	Shares	Amount	Sources of Capital (Shares)	Capital Increase by Assets Other than Cash	Others
2008.01	10	155,000	1,550,000	122,289	1,222,887	Employee bonuses capitalization	None	Note 1
2008.04	10	155,000	1,550,000	122,528	1,225,277	Employee bonuses capitalization	None	Note 1
2008.07	10	155,000	1,550,000	122,536	1,225,362	Employee bonuses capitalization	None	Note 1
2008.08	10	155,000	1,550,000	127,190	1,271,900	Earnings Capitalization	None	Note 2
2008.10	10	155,000	1,550,000	127,196	1,271,960	Employee bonuses capitalization	None	Note 1
2009.01	10	155,000	1,550,000	127,197	1,271,975	Employee bonuses capitalization	None	Note 1
2009.04	10	205,000	2,050,000	127,258	1,272,585	Employee bonuses capitalization	None	Note 1
2009.07	10	205,000	2,050,000	127,303	1,273,025	Employee bonuses capitalization	None	Note 1
2009.09	10	205,000	2,050,000	131,283	1,312,828	Earnings Capitalization	None	Note 3
2009.10	10	205,000	2,050,000	131,293	1,312,928	Employee bonuses capitalization	None	Note 1
2010.01	10	205,000	2,050,000	131,360	1,313,598	Employee bonuses capitalization	None	Note 1
2010.04	10	205,000	2,050,000	131,927	1,319,273	Employee bonuses capitalization	None	Note 1
2010.07	10	205,000	2,050,000	131,983	1,319,833	Employee bonuses capitalization	None	Note 1
2010.10	10	205,000	2,050,000	132,020	1,320,198	Employee bonuses capitalization	None	Note 1
2011.01	10	205,000	2,050,000	132,113	1,321,128	Employee bonuses capitalization	None	Note 1
2014.10	10	205,000	2,050,000	133,229	1,332,293	Employee bonuses capitalization	None	Note 4
2015.01	10	205,000	2,050,000	133,356	1,333,563	Employee bonuses capitalization	None	Note 4
2015.04	10	205,000	2,050,000	133,420	1,334,198	Employee bonuses capitalization	None	Note 4
2015.07	10	205,000	2,050,000	133,432	1,334,318	Employee bonuses capitalization	None	Note 4
2015.12	10	205,000	2,050,000	133,618	1,336,178	Employee bonuses capitalization	None	Note 4
2016.03	10	205,000	2,050,000	133,720	1,337,198	Employee bonuses capitalization	None	Note 4
2016.05	10	205,000	2,050,000	133,902	1,339,023	Employee bonuses capitalization	None	Note 4
2016.08	10	205,000	2,050,000	133,910	1,339,103	Employee bonuses capitalization	None	Note 4
2016.08	10	205,000	2,050,000	163,910	1,639,103	Cash capitalization	None	Note 5
2016.11	10	205,000	2,050,000	164,359	1,643,593	Employee bonuses capitalization	None	Note 4

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Year & Month	Issue Price (NT$)	Authorized Capital		Capital Stock		Remarks
		Shares	Amount	Shares	Amount	Sources of Capital (Shares)	Capital Increase by Assets Other than Cash	Others
2017.02	10	205,000	2,050,000	164,476	1,644,758	Employee bonuses capitalization	None	Note 4
2017.05	10	205,000	2,050,000	164,542	1,645,428	Employee bonuses capitalization	None	Note 4
2017.08	10	205,000	2,050,000	164,664	1,646,648	Employee bonuses capitalization	None	Note 4
2017.11	10	205,000	2,050,000	164,817	1,648,178	Employee bonuses capitalization	None	Note 4
2026.03	10	205,000	2,050,000	184,817	1,848,178	Private Placement of New Shares	None	Note 6

Note 1: Approved by the Financial Supervisory Commission, FSC No. 093014965 Date 2004.09.14
Note 2: Approved by the Financial Supervisory Commission, FSC No. 0970036418 Date 2008.07.18
Note 3: Approved by the Financial Supervisory Commission, FSC No. 0980035624 Date 2009.07.16
Note 4: Approved by the Financial Supervisory Commission, FSC No. 1010029107 Date 2012.07.03
Note 5: Approved by the Financial Supervisory Commission, FSC No. 1050022939 Date 2016.06.22
Note 6: The private placement of 20 million shares at a price of NT$50.88 per share.

2. Type of shares

2026.03.30; Unit: thousand shares

Type of Shares	Authorized Capital				Remarks
	Outstanding shares (listed shares)	Privately Placed Shares	Unissued shares	Total
Common stock	164,817,836	20,000,000	20,182,164	205,000,000	OTC stocks

3.1.2 List of Major Shareholders

2026.03.30

Shares Name of Major Shareholders	Shareholding	Percentage (%)
C Sun Mfg., Ltd	20,000,000	10.82
San Shin Co., Ltd.	12,723,750	6.88
San Shin Investment Co., Ltd	6,995,858	3.79
Tongtai Machine & Tool Co., Ltd.	6,849,178	3.71
HSBC Bank (Taiwan) Limited in custody for Morgan Stanley & Co. International plc investment account	6,782,215	3.67
Jui Hsiu Investment Co., Ltd.	4,091,949	2.21
Hui-Jen Yen	3,167,403	1.71
Citibank Taiwan Limited in custody for UBS Europe SE investment account	3,007,442	1,63
Meta-Sequoia Investment Ltd.	2,991,327	1.62
Citibank Taiwan Limited in custody for Barclays Capital SBL/PB investment account	2,472,000	1.34

3.1.3 Dividend Policy and Implementation Status

Dividend Policy:

Under the Company’s Articles of Incorporation, where the Company made a profit in a fiscal year, the Company performs the following steps:

(1) Paying taxes
(2) Offsetting losses of previous years
(3) Setting aside as legal reserve 10% of the remaining profit
(4) Setting aside or reversing a special reserve in accordance with the laws and regulations.
(5) And then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders.
(6) Distribution of dividends to shareholders through a combination of cash and stock dividends. Wherein the cash dividend shall not be less than 10% of the total amount of cash and stock dividends distributed in the current year.

Proposal to distribute cash dividend at the shareholder meeting:

The 2025 profit distribution proposal was approved by the board of directors on March 6, 2026. The proposed cash dividends for distribution were NT$181,299,620, at NT$1.1 per share, and the proposal is yet to be approved by the shareholder meeting.

Expected dividend policy: Considering the Company's future development, there is no major change in the expected dividend policy.

3.1.4 The impact of bonus shares proposed by the shareholder meeting for the next year on the Company's operating performance and earnings per share:

The Company plans to distribute cash dividends from the distributable 2025 earnings. There will not be bonus shares, so there is no significant impact on the operating performance and the earnings per share.

3.1.5 Compensation of Employees, Directors and Supervisors:

The percentage or range of compensation to employees and remuneration to directors in the Articles of Incorporation is as follows:

If the Company has profits for the year, no less than 5% shall be allocated as employee compensation, to be distributed in the form of shares or cash as determined by a resolution of the Board of Directors. The recipients of such distribution may include employees of subsidiaries who meet certain specific criteria. The Board of Directors may also resolve to allocate no more than 3% of the aforementioned profit amount as

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remuneration for directors. The distribution plans for employee compensation and director remuneration shall be reported to the shareholders' meeting.

However, if the Company has accumulated losses, an amount shall be reserved in advance to offset the losses before allocating employee compensation and director remuneration according to the aforementioned percentages.

No less than 20% of the employee compensation allocated under Paragraph 1 shall be distributed to junior employees.

The estimation basis of compensation to employees and remuneration to directors, calculation basis for number of shares distributed as employee compensation and accounting treatments for difference between estimated and actual payment amount:

(1) The basis for estimating the amount of employee and director compensation for the current period: Subject to the Articles of Incorporation.

(2) The accounting treatment of the difference, if any, between the actual distributed amount and the estimated amount: Recognized as the profit or loss of the period according to the changes in accounting estimates.

Board Resolution for the Distribution of Remuneration:

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

The 2025 profit distribution proposal was approved by the board of directors on March 6, 2026. The proposed cash dividends for distribution were NT$14,120,000 for employees and NT$3,890,000 for directors, and the proposal is yet to be approved by the shareholder meeting. The amounts are identical with the estimates for the year when the expenses are recognized.

(2) The percentage of profit sharing from earnings for employees distributed in stock in the total amount of net profit after tax and profit sharing from earnings for employees: Not applicable.

The actual distribution of remuneration to employees, directors and supervisors (including the number of distributed shares, amount, and share price) in previous year, and whose differences (if any) with the recognized remuneration to employees, directors and supervisors should be disclosed along with the differences, reasons and status:

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The estimated employee remuneration was NT$6,080,000 and the director remuneration was NT$1,830,000 for 2024, and there is no difference between the estimates and the actual distributed amounts.

3.1.6 Buy-back of Treasury Stock: None.

3.2 Corporate Bond

None.

3.3 Preferred Stocks

None.

3.4 Global Depository Receipts

None.

3.5 Employee Stock Options

None.

3.6 Status of employee restricted stock awards

None.

3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions

None.

3.8 Financing Plans and Implementation

(1) Please refer to the Market Observation Post System > Theme Zone > Investment Zone > Private Equity Zone > Private Equity Zone https://mops.twse.com.tw/mops/#/web/t116sb01

(2) Comparison of execution status and projected benefits: As of the quarter prior to the annual report's printing, the capital raised from the 2025 first private placement of common stock was fully received on March 27, 2025. To date, these funds remain unspent.

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IV. Operational Highlights

4.1 Business Activities

4.1.1 Business Scope

Main areas of business operations:
Research, develop, manufacture and sell the following products:
(1) Wafer function and surface inspection machine.
(2) Logic IC and memory IC testing machine.
(3) LCD panel lighting testing machine.
(4) Automation, process, inspection, optics and precision instruments, equipment and components.
(5) Vacuum equipment, sush as sputtering machine and vapor deposition system.
(6) Concurrently operate the international trade of the abovementioned products.
Revenue distribution:
Unit: NT$ thousand; %

Industry category	2025	%
LCD Industry	843,357	29.38%
LED Industry	1,209,575	42.14%
Other	817,752	28.48%
Operating Revenues	2,870,684	100.00%

Main products

Industry category	Product category	Product name
Semiconductor Industry	AOI	RDL Inspection and Circuit Repair
		PLP RDL OM Automatic Optical Measuring Machine
		Driver IC Six Side Inspection Equipment
		DBIM Composite Measuring and Inspection Machine
		AOI
	Automation	Handling System
		EFEM
		VTL
		I-Box Automatic Inspection System
		Storage System
	Laser Applications	EMC Laser Trimming
		Laser Debond
LCD Industry	Process Equipment	Sealant Ultraviolet
		Nano Protusion
		Photo Alignment UltraViolet
		Ultrasonic Dry Cleaner
	AOI	Macro Inspection Equipment
		Glass appearance inspection equipment

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Industry category	Product category	Product name
		Burr Check Equipment
Electrical Testing
Lighting inspection after Demura
Light On Test
PAD Inspection
Automation	Loader/Unloader
Dense Pack/Un-Pack
Factory Conveyance
Laser Applications	Cell Repair
Circuit Cutting
LED Industry	Mini LED Equipment	Light On Test
Repair
Laser Drilling
Tiling
Laminating
Micro LED Equipment	Mass Transfer Equipment
Mass Repair
API+LOT Light On Test
Laser Trimming
Single Chip Repair
Glass Cutting
Film Lamination
Film Laser Cutting
High-Precision Module Tiling
Metal Repair
Vacuum Process Equipment	Sputtering Equipment
Coater Equipment
Plasma Cleaner Equipment
Microwave plasma desmear equipment
Plasma Etching Equipment
Other	Maintenance & Repair Services	Solid-state laser maintenance and repairs
Spare Parts & Consumables	Light-on fixtures, servo stages, pump o/h, light boxes, and other equipment spare parts

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4. New products development

Project objective	Product name	Main purpose
(1) Development of key technologies for Large Generation G6 Micro LED displays	(1) G4.5 COC2 Mass Transfer Equipment	(1) Layout of next generation display industry
(2) Laser debonding system development	(2) Laser Debond System	(2) Layout of advanced packaging processes applications
(3) Development of Laser-Assisted Bonding Technology for 600mm Panel-Level Packaging	(3) Laser Assisted Bonding Equipment
(4) Development of RDL Repair Technology

4.1.2 Industry overview

1. Status and development of the industry

The Company's products, such as process equipment, AOI, laser repair equipment, automation equipment, vacuum sputtering and evaporation equipment, etc. are mainly used by LCD, LED and SEMI factories. They are indispensable inspection, test and repair and automated conveying equipment in the production process, and are considered important foundations in the construction of production lines. The current status of each industry is as follows:

(1) LCD panel industry

In 2025, the global TFT-LCD panel market exhibited a development trend characterized by moderate demand, balanced supply and demand, stabilizing prices, and ongoing industry restructuring, despite the lingering uncertainties in the overall economic environment. According to a report by IMARC Group, the global TFT-LCD market size reached approximately USD 187.10 billion in 2025. It is projected to grow steadily to USD 265.00 billion by 2034, representing a Compound Annual Growth Rate (CAGR) of 3.83%. Although TFT-LCD faces competition from AMOLED and emerging OLED technologies (such as OLEDoS) in certain sectors, it maintains a competitive edge in terms of cost-effectiveness, process maturity, and breadth of application.

TFT LCD Panel Market Forecast

■ 2025-2034 Year TFT LCD Panel Market Forecast
(Source:IMARC Services Private Limited 2026)

Regarding end-market applications, the demand for TFT-LCDs in 2025 exhibited a structural divergence. Demand for TV panels remained largely flat, with LCD TV panel shipments showing only a modest growth of approximately $1\%$ , reflecting a continued cautious tone in consumer momentum. Conversely, demand for IT applications, such as notebook computers and monitors, remained relatively steady, serving as a primary driver for LCD panel shipments. Overall, the LCD market has transitioned from broad-based growth in the past to application-specific differentiation, with IT application demand demonstrating greater resilience than that of consumer electronics.

From the perspective of supply and demand structure, the LCD market in 2025 has clearly moved beyond the previous conditions of oversupply and significant price volatility. As global panel manufacturers have substantially reduced investments in new production lines in recent years, overall capacity expansion remained limited in 2025, leading to an improved supply-demand balance. Simultaneously, manufacturers have generally adopted strategies of utilization rate control and build-to-order (BTO) production, effectively mitigating inventory risks and supporting price stability. The industry has transitioned from a past focus on "capacity expansion competition" toward a mature market model centered on "capacity discipline and profitability management."

In terms of the industrial competitive landscape, market concentration in the global LCD industry continued to increase in 2025, characterized by a clear strategic divergence. Chinese panel manufacturers have rapidly solidified their dominant positions within the global LCD supply chain through the expansion of high-generation production lines and strategic mergers and acquisitions (M&A). According to data from Omdia, BOE ranked first globally in 2025 with a large-size LCD shipment market share of approximately $36.2\%$ , followed by TCL CSOT at $16.4\%$ , and Innolux at $11.7\%$ in third place. This underscores that Chinese manufacturers now control the majority of global supply capacity. Overall, while Chinese manufacturers continue to expand their market

dominance by leveraging advantages in scale, cost, and capacity, non-Chinese manufacturers are progressively pivoting toward high-value-added and niche application markets.

Furthermore, significant structural adjustments occurred within the industry in 2025. South Korean panel manufacturers continued their exit from the large-sized LCD market, pivoting their focus toward OLED and high-end display technologies. Following the divestment of its Gen 8.5 LCD fab in Guangzhou, LG Display (LGD) has concentrated on medium-to-large-sized WOLED panels, as well as automotive and notebook OLED applications. Samsung Display has fully exited the LCD business, consolidating its resources into the construction of AMOLED and high-generation OLED production lines, while strategically positioning itself in next-generation MicroLED technology.

In contrast, Taiwanese panel manufacturers have adopted a development strategy centered on "reducing capital expenditure, strengthening operational resilience, and driving transformational upgrades." By consistently streamlining CAPEX and fortifying operational health, Taiwanese firms aim to enhance efficiency through production line optimization, product mix adjustments, and asset revitalization. Simultaneously, they are aggressively expanding into high-value-added sectors, including automotive, industrial control, medical, and vertical application markets, while investing in cutting-edge fields such as Micro LED, advanced packaging (e.g., FOPLP), and system integration.

Overall, the LCD industry in 2025 has further evolved from a multi-national competitive landscape into a more stratified and differentiated market structure. This new paradigm is characterized by Chinese manufacturers dominating the scale of supply, South Korean manufacturers focusing on emerging display technologies, and Taiwanese manufacturers pivoting toward high-value-added products and diversified applications.

Regarding capital expenditure (CapEx), the LCD industry witnessed a significant turning point in 2025. Major panel manufacturers have generally curtailed investments in new large-size LCD production lines. The strategic focus of CapEx has shifted from "capacity expansion" to "efficiency enhancement and technological upgrades," including the optimization of existing production lines, the introduction of high-end products, and the strategic positioning for emerging display technologies. Overall, capital expenditure in 2025 was characterized by moderating total volume and structural transformation, reflecting that the LCD industry has entered a mature stage.

Overall, while the LCD market has entered a mature phase, it continues to maintain a substantial scale and fundamental growth momentum, driven by the trend toward large-size displays, steady demand for IT applications, and enhanced supply discipline. Looking ahead, industrial competition will no longer center on capacity expansion. Instead, it will shift toward technological upgrades, product differentiation, and capital efficiency. Furthermore, the industry is poised to evolve into a complementary development landscape alongside Mini LED, Micro LED, and other emerging display technologies.

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(2) LED industry

LED (Light Emitting Diode) technology is characterized by high energy efficiency, long lifespan, and compact size. Its applications are extensive, primarily encompassing general lighting (including architectural and agricultural lighting), automotive lighting and displays, backlighting/displays, electronic products, and Infrared (IR)/Ultraviolet (UV) LEDs.

In 2025, the global LED industry exhibited a development trend defined by "weak demand, structural divergence, and a shift in growth focus toward high-value-added applications." According to research from TrendForce (Topology Research Institute), overall LED end-market demand performed poorly due to the global economic downturn and reciprocal tariff policies. The traditional backlight LED market continued to decline, and the general lighting LED sector faced significant value pressure due to falling prices. The display LED market also recorded negative growth, impacted by sluggish end-user demand and the substitution effect of COB (Chip on Board) technology.

Conversely, applications such as automotive LEDs, Mini LED backlighting, and Mini LED displays continued to maintain growth. In summary, the global LED market value is estimated at approximately USD 12.512 billion in 2025, a year-on-year decrease of 1%. This indicates that the industry has transitioned from relying on general lighting and standardized products for volume growth to a development paradigm supported by automotive, emerging displays, and niche applications.

Observing various application fields in 2025, automotive LED applications have emerged as a relatively stable segment with significant momentum for technological upgrades. According to TrendForce’s research on automotive LEDs, automotive lighting and display products are evolving toward intelligence, personalization, communication displays, driving assistance, and safety upgrades.

The scope of applications has expanded from traditional headlights, taillights, and dashboard backlighting to high-value-added solutions such as Adaptive Driving Beam (ADB) headlights, Mini LED taillights, full-width taillights, ambient interior lighting, Head-Up Displays (HUD), and multi-screen cockpit displays. Although intense competition in the Chinese auto market and localization policies led to price pressure on certain automotive LEDs—resulting in a slight downward revision of the total market value in the second half of 2025—the strategic importance of automotive LEDs remains high. From a technical trend perspective, their role in smart cockpits, advanced lighting, and brand differentiation continues to grow, making this a sector with solid mid-to-long-term growth potential within the LED industry.

In the field of display applications, the evolution of Mini LED and Micro LED technologies is redefining the high-end display market. Mini LED has already been widely adopted in televisions, notebooks, and high-end automotive display devices. Characterized by high brightness, long lifespan, and local dimming capabilities, it is gradually emerging as a compelling alternative to OLED, offering a balance between cost and performance.

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Meanwhile, Micro LED—distinguished by its high brightness, miniaturization, self-emissivity, low power consumption, and high reliability—is expanding beyond large-sized displays. Between 2025 and 2026, leading brands have significantly accelerated their strategic deployment in application scenarios such as AI glasses, AR near-eye displays, automotive information displays, and emerging optical communications. Companies from Taiwan, South Korea, and China are aggressively investing in the Micro LED ecosystem, sparking a global competition across the entire supply chain—from chip fabrication and mass transfer to backplane materials and module integration.

The upgrading trend of display technologies has triggered another significant transformation within the LED industry. Panel manufacturers and brand owners are accelerating their upstream expansion into the LED chip and module supply chain through acquisitions, investments, and strategic alliances to deepen vertical integration.

For instance, TCL CSOT formally entered the LED chip sector by acquiring an 80% stake in Zhaoyuan Optoelectronics (MTC) at the end of 2025. Similarly, BOE became the largest shareholder of HC Semitek through capital injection to jointly advance their Micro/Mini LED business. Furthermore, since 2018, leading brands and panel makers such as Samsung, AUO, Hisense, Innolux, and HKC have progressively secured their positions in the LED chip and next-generation display supply chains via investments, partnerships, or the establishment of in-house production lines.

This trend underscores that panel manufacturers are no longer focusing solely on terminal display modules. Instead, they seek to master key technologies and supply sources—ranging from LED chips and backlighting to packaging and display applications. This strategic shift aims to reduce supply chain coordination costs while enhancing the mass production capabilities and cost competitiveness of Mini/Micro LED products.

Micro LED technology continues to achieve significant breakthroughs, transitioning from the R&D and verification phase into the initial stage of commercial adoption. Currently, applications remain concentrated in high-unit-price, small-sized, or niche markets—such as smartwatches, AR near-eye displays, and high-end commercial displays. While the overall market scale is still relatively limited, technological maturity has improved substantially.

With continuous advancements in mass transfer technology, laser repair, and automated optical inspection (AOI) capabilities, production yields have steadily increased, positioning Micro LED for the requirements of mass production. Furthermore, brand manufacturers are incorporating new materials, such as Silicon (GaN-on-Si) and Gallium Nitride (GaN) substrates, to enhance display stability and luminous efficiency. By fostering upstream and downstream collaborations to shorten the technology implementation cycle, the industry is aggressively pushing Micro LED from "proof-of-concept" products toward large-scale market applications.

According to a report by TrendForce, the market value of Micro LED is estimated to be approximately USD 39 million in 2025. Driven by continuous technological advancements and the increasing diversity of application scenarios, the market value is

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projected to reach USD 745 million by 2029. This represents a Compound Annual Growth Rate (CAGR) of 93% from 2024 to 2029.

Estimated Chip Market Value for Micro LED Display Applications (US$M)

Source: TrendForce, May., 2025)

Overall, the LED industry is progressively shifting from traditional lighting toward a dual-track development model of "high-resolution displays and smart applications." From the rapid market expansion of Mini LED to the gradual mass production of Micro LED, the technical barriers and competitive landscape of the display market have undergone a significant reshuffle.

Looking ahead, in an industrial environment defined by the convergence of AI, edge computing, and the Internet of Vehicles (IoV), LED technology will evolve beyond a mere light source to become the central hub for smart displays and interactive devices. If Taiwan can achieve continuous breakthroughs in key technologies—such as mass transfer, inspection and repair efficiency, and module integration—it will be well-positioned to secure a leading vantage point in the global high-end display market.

(3) Semiconductor Industry

In recent years, as Moore's Law encounters physical scaling limits, the semiconductor industry has progressively shifted its focus from pure process node shrinkage to a development model centered on System-Level Integration. Advanced Packaging has consequently emerged as a pivotal technology for driving improvements in chip performance, functional expansion, and cost optimization.

According to research by Yole Group, the global advanced packaging market has already reached a valuation of tens of billions of dollars. The market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 8%–12% between 2023 and 2029, with the total market size expected to exceed USD 70 billion by 2030. This trajectory underscores the strong, long-term growth momentum inherent in the sector.

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Advanced packaging encompasses a wide range of integration methodologies, including Wafer-Level Packaging (WLP), System-in-Package (SiP), 2.5D/3D IC, Fan-Out packaging, and Panel-Level Packaging (PLP). The field is progressively moving toward emerging applications such as Heterogeneous Integration and Co-Packaged Optics (CPO).

The defining characteristic of these technologies is the use of high-density routing and three-dimensional (3D) spatial integration to consolidate logic chips, memory, and various functional components into a single package. This approach not only significantly shortens signal transmission paths and reduces power consumption, but also effectively enhances system performance and overall design flexibility, thereby accelerating time-to-market (TTM) for new products.

Under this trend, heterogeneous integration has become the primary axis of industrial development. High-end packaging technologies represented by 2.5D/3D silicon interposer architectures (such as CoWoS-like technologies) have emerged as the dominant technical route with the fastest market growth. These technologies are widely utilized in AI accelerators and data center computing platforms due to their ability to effectively integrate High Bandwidth Memory (HBM) with High-Performance Computing (HPC) chips.

Regarding the supply-demand structure, wafer foundry ecosystems possessing high-end process and integration capabilities continue to lead the development of advanced packaging technologies and provide the bulk of production capacity. However, given the rapid growth in demand, continuous capacity expansion has struggled to fully satisfy market needs, leading to a spillover effect where a portion of packaging demand is shifting toward OSAT (Outsourced Semiconductor Assembly and Test) providers.

OSAT providers are aggressively upgrading their advanced packaging technologies, capturing demand in sectors such as Fan-Out, SiP, and certain high-density packaging fields while progressively elevating their technical sophistication. Meanwhile, to ensure supply chain stability and capacity flexibility, end-system and chip design companies are implementing multi-sourcing strategies. This is shifting the advanced packaging industry from a highly concentrated supply structure toward a landscape characterized by multi-level division of labor and the coexistence of competition and cooperation.

Beyond foundries and OSATs, the supply chains for substrates, materials, and equipment are also undergoing synchronized upgrades. Overall industry competition has evolved from a focus on single-process capabilities into a comprehensive competition encompassing technical integration, capacity deployment, and supply chain synergy.

Within the development of various packaging technologies, Fan-Out Panel-Level Packaging (FOPLP) has progressively emerged as a critical direction for multi-die integration and large-area packaging, owing to its potential for large-scale production, high efficiency, and cost optimization.

Overall, the semiconductor advanced packaging industry in 2025 has transitioned from a technology-oriented phase into a stage of simultaneous capacity and application

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expansion. Driven by the sustained growth in demand for AI, High-Performance Computing (HPC), and high-speed communications, the momentum for high-end heterogeneous integration remains robust.

Looking forward, industry competition will no longer be confined to individual processes or packaging formats. Instead, it is evolving into a comprehensive competition encompassing overall system integration capabilities, collaborative process development, and supply chain integration. Advanced packaging will continue to serve as a pivotal growth driver for the semiconductor industry. Leveraging its comprehensive semiconductor supply chain, advanced manufacturing nodes, and technical integration expertise, Taiwan is well-positioned to further strengthen its strategic status within the global semiconductor value chain, capturing the next wave of technological upgrades and order-shift opportunities.

Relationship between upstream, midstream and downstream of the industry:

Upstream	Midstream	Downstream
Electrical engineering industry	Mechanism design Automatic control circuit design Mechanical interface	LCD/ LED Semiconductor Manufacturing Industry
Power transmission components industry	Mechanical assembly testing
Optoelectronic components industry
Mechanical processing industry

Various product trends:

(1) LCD Value-Added Transformation and Process Upgrading

The development of LCD products has shifted from being volume-driven to a trend that emphasizes both specification upgrades and process refinement. In terms of terminal applications, the trend toward larger displays continues to advance, with TV panels moving toward ultra-large sizes. Simultaneously, IT products are evolving toward high resolution, high refresh rates, low power consumption, and ultra-slim bezel designs. These advancements have spurred increased demand for equipment specializing in high-precision alignment, cutting, material handling, and automated optical inspection (AOI).

Furthermore, panel manufacturers have adjusted their business strategies from capacity expansion to efficiency-oriented operations. Consequently, equipment demand has pivoted from new facility investments to the automation upgrades of existing lines, yield improvement, and the implementation of smart manufacturing processes.

Moreover, as LCD technology integrates with Mini LED backlighting and high-value-added applications such as automotive and industrial controls, products are developing toward high brightness, high contrast, and high reliability. This evolution further drives the demand for laser processing and precision inspection equipment. Within an environment of more cautious capital expenditure, panel makers have become more cost-conscious and ROI-focused in their procurement, raising their requirements for equipment pricing, return on investment (ROI), and implementation efficiency.

Under these conditions, equipment suppliers must not only possess cross-process integration and customization capabilities but also strengthen their cost competitiveness and the value of their turnkey solutions. Overall, the LCD industry has transitioned from a scale-oriented model to one focused on high-value, precision, and efficiency. By leveraging our core strengths in laser, optics, and automation integration, the Company is well-positioned to balance cost-effectiveness with technical barriers, consistently capturing the equipment opportunities driven by production line upgrades and emerging display applications.

(2) Micro LED Driving Display Technology Upgrades and Industrial Restructuring

Micro LED, the next-generation display technology, has reached a critical turning point for transformation and serves as a strategic breakthrough for Taiwanese manufacturers to regain global leadership. Micro LED is neither a simple LED nor a traditional panel industry; rather, it is a "semiconductor-like" technology.

Leveraging their foundations in LED chip manufacturing, panel production, and semiconductor processing, Taiwanese firms have progressively established an integrated capability ranging from upstream chips to downstream display systems, securing competitive advantages in key technologies such as mass transfer and display modules.

However, Micro LED still faces the significant challenge of high production costs. Looking ahead, as products move toward a high degree of customization, it is imperative for both upstream and downstream players to collaboratively define "system specifications." By synchronizing every segment of the supply chain, the industry can

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effectively improve production yields and achieve cost reductions, paving the way for large-scale commercialization.

(3) Larger Chip Sizes and Heterogeneous Integration Driving Demand for Collaborative Process Development

Equipment suppliers and their customers maintain a complementary development relationship. Suppliers facilitate improvements in the customers' process technologies, while customers provide essential market demand information to guide R&D efforts, alongside supporting manpower and capital. This resource complementarity fosters a win-win environment for both parties.

As demand for AI and High-Performance Computing (HPC) grows rapidly, chip designs are evolving toward larger sizes and multi-die heterogeneous integration (Chiplet), significantly increasing the complexity of advanced packaging processes. Under the requirements of high I/O density, high bandwidth, and high power consumption, packaging must simultaneously address challenges such as warpage control, thermal management, material matching, and fine-pitch interconnects. These factors have made improving process stability and production yields increasingly difficult.

Since technologies continue to evolve and various parameters remain highly coupled with material properties, individual technologies or existing equipment specifications are no longer sufficient to meet these challenges. Instead, it has become imperative to engage in close collaborative development with wafer foundries and OSATs (Outsourced Semiconductor Assembly and Test providers) to seek technological breakthroughs.

Under this trend, the industry is progressively shifting toward an operational model centered on "collaborative development." The process bottlenecks resulting from larger chip sizes and heterogeneous integration must be addressed through close cooperation between wafer foundries, OSATs, and the equipment supply chain. By engaging in joint design and process verification at the earliest stages of product development, these partners can collectively overcome critical process pain points.

Future products must not only offer high precision and stability but also the flexibility for rapid process switching and the integration of heterogeneous materials to keep pace with the continuous evolution of AI and HPC applications. This trend is driving equipment suppliers to transform from traditional vendors into co-innovation partners. Such a shift further enhances technical stickiness and fosters long-term, strategic relationships with customers.

Competition:

In the semiconductor industry, as process miniaturization approaches its physical limits, the focus of industrial development has significantly shifted toward advanced packaging and heterogeneous integration technologies. Driven by the surging demand for AI, High-Performance Computing (HPC), and High Bandwidth Memory (HBM), high-end

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2.5D/3D packaging and related technologies are advancing rapidly, forming a new focal point of industrial competition.

Due to the high technical barriers and substantial investment required for high-end packaging, the market is currently dominated by wafer foundry ecosystems with comprehensive process capabilities. However, fueled by rapid demand growth, production capacity remains consistently tight, leading to a gradual spillover of demand into the OSAT (Outsourced Semiconductor Assembly and Test) ecosystem. OSAT providers are also aggressively upgrading their process capabilities, fostering a co-opetitive (competitive and cooperative) relationship with wafer foundries in sectors such as Fan-Out, System-in-Package (SiP), and certain high-end packaging fields.

In the realm of next-generation display technology, Micro LED process equipment remains primarily dominated by major international suppliers—such as ASMPT, K&S, Shin-Etsu Chemical, and Toray—due to the technical complexities involving mass transfer, repair, inspection, and module integration. The technical barriers are high, and most manufacturing processes have yet to be fully standardized.

However, Taiwan possesses a comprehensive upstream and downstream LED supply chain and a robust foundation in display manufacturing. This strong industrial integration capability has allowed Taiwanese firms to progressively accumulate technological advantages in fields such as mass transfer and display integration. As Micro LED evolves toward high-end displays, automotive applications, and near-eye devices, the degree of product customization is increasing. This necessitates that system specifications be co-defined by both upstream and downstream players, fostering closer collaborative relationships between equipment suppliers and their customers.

Overall, the Micro LED industry is currently in the stages of technology implementation and cost optimization. Future competitive success will hinge on yield improvement, process integration capabilities, and the ability to engage in collaborative supply chain development.

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cooperative) relationship with wafer foundries in sectors such as Fan-Out, System-in-Package (SiP), and certain high-end packaging fields.

Furthermore, alongside the trend toward larger chip sizes and heterogeneous integration (Chiplets), the complexity of packaging processes has increased significantly, creating development opportunities for new processes such as Panel-Level Packaging (PLP). By combining the advantages of large-scale substrates with high-density interconnects, these technologies offer substantial potential for cost optimization and capacity scaling, attracting active investment from OSATs, equipment manufacturers, and the display equipment supply chain.

Taiwan possesses a deep foundation in both display process equipment and the OSAT industry, providing a competitive edge for entering this wave of process transformation. Through collaboration with local OSAT providers and international clients, there is a strategic opportunity to progressively enhance technological autonomy and overall industrial competitiveness.

Overall, the competitive landscape across the three major sectors—LCD, Micro LED, and Advanced Packaging—has evolved from a competition over individual equipment or isolated processes into a model centered on cross-industry integration and supply chain synergy.

For equipment manufacturers, it is no longer sufficient to merely raise technical barriers and enhance product performance. It is now imperative to deepen collaborative development capabilities with customers to keep pace with the rapid evolution of processes and the increasing diversification of applications. Only by doing so can companies maintain a sustainable competitive advantage and capture long-term growth opportunities amidst this era of industrial upgrading.

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4.1.3 Overview of technologies, research and development

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

Unit: In Thousands of New Taiwan Dollars

	2025
Research and development expenses	176,213
Technologies and products successfully developed	1. G4.5 Final Repair Equipment
2. 300 panel form EMC trimming Equipment
3. 300 wafer form EMC trimming Equipment (G3)

4.1.4 Long-term and short-term business development planning

Short-term development plan:

(1) Marketing strategy

A. Catering to market demand with high-performance, cost-effective products to deepen existing client relationships and aggressively expand our customer base.
B. Actively participate in exhibitions to enhance the company's brand and visibility of new products.
C. Actively expanding into high-value-added industries to diversify and mitigate the risks associated with cyclical fluctuations in any single industry.

(2) Production strategy

A. Optimizing manufacturing workflows and supply chain integration to improve operational efficiency and ensure on-time delivery in alignment with customer expectations.
B. Refining product architecture and process integration to drive cost reductions and elevate the operational stability and yield of our equipment.
C. Establishing flexible manufacturing and modular design capabilities to address diversified processes and highly customized requirements.

(3) Business administration

A. Consistently upgrading ERP and enterprise information systems to streamline integration across sales, manufacturing, supply chain, and finance, driving superior operational performance.
B. Empowering decision-making through enhanced data analytics and real-time monitoring to effectively manage the complex operational requirements of a multi-industry, multi-product portfolio.
C. Strengthening cross-departmental synergy to accelerate the efficiency of co-development initiatives and bolster our ability to execute customized client solutions.

Long-term development plan:

(1) Marketing strategy

A. Integrating customer demands across the display and semiconductor industries to provide cross-process and cross-application total solutions, thereby strengthening technical stickiness and long-term client loyalty.
B. Expanding our portfolio of products and services to scale operational capacity and amplify our market influence..

(2) Product strategy

A. Product positioning. Outsource the manufacturing of low-margin products, and commit resources in products that will become mainstream in the future.
B. Strengthening strategic collaborations and technical alliances with upstream and downstream partners to co-develop innovative processes and pioneer new application markets

(3) Production strategy

A. Focus on R&D in key processes and equipment technologies to bolster product precision, stability, and long-term reliability.
B. Cultivating strategic long-term relationships with key suppliers to drive integrated procurement and quality excellence, securing the continuity of critical component supplies.

(4) Business administration

A. Actively developing multi-disciplinary talent to build robust human capital and secure a long-term competitive edge for the company.
B. Fostering a dual-focus culture of technological excellence and customer centricity to strengthen our organization's adaptability and drive continuous innovation.
C. Utilizing capital market resources to finance R&D initiatives and market development in alignment with our long-term strategic growth objectives.

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4.2 Markets, production, and marketing

4.2.1 Market analysis

Regions of distribution (provision) of major products (services)
Unit: In Thousands of New Taiwan Dollars, %

Sales Regions	2025
	Sales Revenue	Percentage (%)
Domestic	1,372,424	47.81%
Asia	1,498,260	52.19%
Other	-	-
Total	2,870,684	100.00%

Market share and future supply and demand and growth potential of the market

(1) Market share: :

The Company has long been dedicated to the development of equipment for the LCD panel and LED sectors, with a product portfolio encompassing laser processing, optical inspection (AOI), vacuum coating, automated material handling, and full-line integration solutions.

Due to the highly customized nature and project-based implementation characteristic of the equipment market, overall market share is challenging to quantify through a single metric. However, leveraging our long-term technical accumulation, localized service advantages, and established customer base, the Company maintains a significant level of market visibility and competitive standing.

Furthermore, as emerging display technologies such as Micro LED continue to evolve, there is an increasing demand for high-precision equipment and full-line integration. This trend is expected to provide sustained growth opportunities for the Company to expand its application fields and further enhance its market penetration.

As the trend toward Panel-Level Packaging (PLP) becomes increasingly well-defined, the Company has consistently expanded its presence in the semiconductor assembly and testing (OSAT) market in recent years. We have proactively promoted the application of our automation, laser, and optical inspection/metrology equipment, successfully penetrating the supply chains of multiple major OSAT clients and establishing a solid market foundation.

Leveraging the extensive process experience and technological advantages accumulated in the TFT-LCD industry, the Company continues to strategically position its equipment for PLP and advanced packaging applications. Driven by growing industrial demand and the ongoing restructuring of the global supply chain, we anticipate significant growth potential in the years ahead.

(2) Future supply and demand and growth of the market

Against the backdrop of rapidly evolving global display technologies, the LCD industry has entered a mature stage. The market's supply-demand structure has shifted from being expansion-driven to efficiency and technology upgrade-driven.

Panel manufacturers are now prioritizing investments in existing line optimization, process improvement, and automation upgrades. There is a continuous push toward larger screen sizes, higher resolutions, and the development of high-value-added niche products. Meanwhile, as equipment reaches the end of its lifecycle, a stable demand for replacement and retrofitting persists.

Under these trends, equipment demand has transitioned from one-time capital expenditures (CapEx) for factory construction to long-term, stable requirements for process enhancement and line upgrades. Equipment providers can establish enduring partnerships with clients by deepening technical integration and service offerings.

The rise of Micro LED technology has injected new momentum into the display equipment industry. Compared to traditional display technologies, Micro LED offers superior advantages such as high brightness, high contrast, wide color gamut, low power consumption, and high reliability. Furthermore, its ability to support innovative forms like flexible and transparent displays has made it a strategic breakthrough for Taiwanese panel manufacturers to counter competition from OLED technology and the rapid rise of the Chinese supply chain.

In 2025, Micro LED transitioned from the R&D and validation phase into the initial commercialization stage. While the overall market remains in its infancy, brand owners and panel manufacturers are actively investing in application scenarios such as smart wearables, AR near-eye displays, automotive displays, and high-end commercial displays. This trend is progressively driving up the demand for technical validation and the establishment of new production lines.

As Micro LED technology advances, industrial investment models have shifted from traditional capacity expansion to a focused construction of critical processes and mass-production capabilities, with related capital expenditures (CapEx) now progressively ramping up. The Micro LED manufacturing process involves high-complexity technologies such as Mass Transfer, precision alignment, high-speed inspection, and laser repair, which are driving an emerging demand for specialized equipment.

Contrel Technology has long been dedicated to automation, laser applications, and precision assembly equipment. We have established a robust technology platform that enables panel manufacturers to conduct process validation and implementation. Furthermore, with our comprehensive full-line integration capabilities, we are well-positioned to provide powerful support for the next wave of industrial upgrading.

The semiconductor advanced packaging industry has emerged as another pivotal strategic direction for the Company in recent years. As applications in AI, High-Performance Computing (HPC), and High Bandwidth Memory (HBM) continue to

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proliferate, the demand for advanced packaging is growing rapidly, resulting in a structural supply-demand imbalance. Notably, in high-end 2.5D/3D and heterogeneous integration processes, capacity expansion remains insufficient to fully satisfy market needs.

Beyond the sustained investment from the wafer fabrication ecosystem, Outsourced Semiconductor Assembly and Test (OSAT) providers are also aggressively upgrading their process capabilities and scaling capacity. As the overall supply chain continues to broaden, it is driving a synchronized increase in demand for equipment investment. Furthermore, emerging processes such as Panel-Level Packaging (PLP), which offer advantages in large-scale substrates and cost-efficiency, are progressively gaining market attention. As these technologies mature and applications expand, they are expected to further catalyze demand for related equipment.

In this market environment, the Company has leveraged its existing panel process experience and equipment technology foundation to progressively enter the semiconductor advanced packaging industry, establishing an initial customer base in select niche process segments.

As the advanced packaging market continues to grow and the global supply chain undergoes restructuring, the Company expects to gradually enhance its product penetration and market visibility by participating in customers' process development and mass-production implementation. This is anticipated to drive an increase in the revenue contribution from semiconductor-related operations. Overall, the advanced packaging market possesses long-term growth potential and will serve as one of the pivotal drivers for the Company's future operational growth.

Favorable and unfavorable factors of the development prospect and countermeasures.

(1)Competitive niche

A. Complete system integration capabilities

A full-featured equipment manufacturer requires system integration capabilities, which include mechanical design, image and visual design, automatic control circuit design, software design, etc. Our R&D and design teams have the abovementioned capabilities, and can independently develop various key core technologies to immediately meet various needs for customization. We have the best system integration capabilities among domestic equipment manufacturers. Our competitive advantages extend to the following areas:

a. The Company has complete system integration capabilities and can immediately meet various needs for customization.
b. The production equipment is built with good integration capabilities, and it is better than competitors in terms of equipment stability, performance, and modification flexibility.

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c. Offer a wide range of production equipment. Projects can be completed independently without relying on the collaboration with other companies. Equipment pricing is more competitive.

B. Control core technologies for the manufacturing of a number of equipment

a. Institutional design

The equipment used in the electronics industry has stringent requirements on mechanical precision, especially that the drive and positioning need to be quick and accurate, so that the production efficiency of Electronics, panel, and semiconductor customer products can be enhanced, further improving the competitiveness of clients. We collaborated with LCD manufacturers first to develop LCD equipment, and worked with them for testing and modification. We have obtained the certification of LCD manufacturers, completed the one-stop solutions of mini/micro LED panel production based on the certification, and continued to improve the performance of the equipment.

Additionally, building on this foundation, we will actively expand into the semiconductor assembly and testing industry, successfully becoming a supply-chain provider for PLP laser applications, inspection, and automation systems.

b. Image visual design

Inspection equipment used in the electronics industry usually needs to be equipped with visual technology, such as visual identification, visual positioning, and visual inspection. Our visual technology team has capabilities handling photoelectric visual hardware design, image processing programming design, visual detection and identification, and visual positioning, and can independently develop visual software, programming design and modification with high autonomy to meet the needs of customized and diverse visual technologies.

c. Automatic control circuit design

The electronics industry has high requirements on mechanical precision of equipment, especially that the drive and positioning need to be quick and accurate. The drive incorporates the use of several circuit control designs, and we have the key technologies in circuit control design.

d. Software design

We develop operation control and analysis integrated software in-house, and use them in various production equipment. At present, the technologies that have been completed include,

I. Automation control software: The control system built based on PC.
II. MMI (Man-Machine Interface) control software: Communication interface tool between the user and the equipment.
III. System analysis and integration technology: Analyze and integrate the data generated by equipment during the production process.

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IV. Multi-thread multi-processing technology: Process multiple program computation in parallel to improve efficiency.
V. Real-time control technology: Real-time detection of machine movements and status, and report the information back to users.
VI. Logistics and dataflow design: Real-time automatic account management performed by the equipment.
VII. Smart manufacturing-related application technologies: Real-time diagnosis/reporting, AI-assisted repair functions, etc.

e. Laser applications

Laser processing applications mainly include laser optical path design, software design capabilities, and laser system application capabilities. We have independent design capabilities in various fields and years of design experience, which can be vertically integrated with opto-mechanical design to accelerate design speed and improve laser system functions to accurately meet customer needs. Furthermore, Our years of consistent investment have created at Control one of the country's most extensive private process and material testing facilities, featuring over a dozen laser and experimental platforms. This allows customers to verify samples anytime, facilitating order acquisition.

C. Grasp the source of key components

At present, the manufacturing of key components needed for TFT LCD laser repair - the laser system, are dominated by Japanese and American suppliers. Due to the high specifications and requirements, long-term testing and certification by customers are required, making it difficult for new laser companies to enter the industry. We have collaborated with laser system companies for a long time, and the laser specifications for repair have been certified by customers.

In addition, in the field of Mini/Micro LED displays, our company possesses soft mold embossing technology and yellow light process capabilities. With our own yellow light laboratory, we can control the supply and improvement of key components for mass transfer. This not only allows for continuous upgrades of equipment functionality without being dependent on external parties but also helps establish technological barriers, creating an entry threshold for latecomers, maintaining our competitive advantage, and preserving equipment profitability.

D. Development of new processes and optimization of existing processes

Clients improve their competitiveness by accelerating the process speed, enhancing the flexibility of production, improving equipment performance and reducing investment costs, or optimizing the utilization of the expensive clean room areas. We recognize that boosting client competitiveness hinges on maximizing our own strengths. Thus, we collaborate with clients or independently develop technologies and equipment aimed at saving time and energy to meet their needs.

Using the micro LED display industry as an example, we supply essential process equipment for micro LED applications, including mass transfer, repair, laser trimming, and lighting inspection. These systems are integrated with automated serial equipment in the panel industry, enabling the smart, automated manufacturing of entire production lines.

E. Comprehensive service network and localized services

Good service includes engineer arrival time and processing efficiency. Since the production line output in the electronics industry is immense, time is critical for the customer, making the production line's operation a lifeline. Therefore, it is evident that customers cannot tolerate delays in equipment delivery or machine downtime. Whether it's for new machine installations, regular equipment calibration, or maintenance services, panel and semiconductor testing manufacturers cannot afford to wait for suppliers. To provide customers with timely service, our company has established dedicated customer service departments in Tainan Science Park, Kaohsiung Nanzi, Hsinchu Science Park, Miaoli Zhunan, and Taichung Daya, offering nearby service to customers with advantages in both service efficiency and cost. Additionally, our machine maintenance personnel are responsible not only for maintaining our own production equipment but also for repairing some overseas equipment. They work with research and development staff to maintain foreign equipment, enabling the R&D personnel to understand foreign equipment and, by doing so, improve their technical skills through this cross-learning.

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(2) Favorable and unfavorable factors of the development prospect and countermeasures.

A. Factors favorable to the development

Items	Summary	Explanation
Internal factors	Leveraging our years of accumulated technical expertise and proven track record to expand into new markets and emerging sectors.	With decades of dedication to the TFT-LCD equipment sector, the Company possesses robust in-house R&D and manufacturing capabilities. Having accumulated extensive process experience and a proven track record, we are well-positioned to extend our core competencies into emerging applications. Leveraging our established technical foundation and client relationships, we are progressively expanding into next-generation displays and semiconductor advanced packaging markets, consistently broadening our equipment's application scope and strengthening our competitive foothold through real-world implementation and collaboration.
	Agile localized service and comprehensive support to ensure rapid response to customer needs.	Leveraging our local presence, we provide immediate maintenance and process optimization to accelerate troubleshooting and enhance facility utilization for our clients. In today's high-precision and fast-paced industrial landscape, rapid service capability is a key differentiator that strengthens our position as a leading equipment provider.
	Integrated hardware-software solutions and bespoke development expertise.	Our integrated software and electrical engineering expertise enables us to offer bespoke designs that align with diverse manufacturing processes. We specialize in merging hardware with automation systems to provide agile solutions. This synergy between hardware and software not only boosts machine performance and application versatility but also fosters strategic, deep-level partnerships through joint development initiatives.
	Equipped with dedicated laser laboratories and lithography platforms to provide process validation and application development support.	The Company has established the industry's most extensive laser optics and photolithography laboratories, alongside comprehensive testing platforms. These facilities allow us to provide real-time process validation and sample prototyping services, significantly shortening the time-to-market for new technologies and enhancing product development success rates. This capability deepens our collaborative relationships with clients and strengthens our early-stage engagement in the implementation of emerging processes.
	Robust technical teams with strong multi-disciplinary synergy and integration expertise.	With a robust team of nearly 100 software and electrical engineers, the Company has independently developed proprietary HMI and electronic control technologies over many years. This deep technical bench enables us to swiftly adapt to varying industry demands and deliver tailor-made, integrated equipment and systemic solutions for our customers.
External factors	Benefiting from Taiwan's mature industrial ecosystem and exceptional precision engineering	Benefiting from Taiwan's integrated precision engineering and electronics supply chain, the Company leverages a strong local base of components and manufacturing expertise. This well-established infrastructure is instrumental in optimizing equipment quality, accelerating

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Items	Summary	Explanation
	capabilities, the Company maintains high manufacturing standards and operational flexibility.	delivery schedules, and achieving cost efficiencies, ultimately fortifying our global competitive edge.
	Government policy support and industry upgrading momentum.	The government continues to promote the upgrading of the semiconductor and display industries through various initiatives and measures to optimize the investment environment. By encouraging technical R&D and cross-industry collaboration, these policies have fueled the development momentum of the equipment sector. Furthermore, the progressive deepening of industry-government-academia partnerships is facilitating the introduction of new technologies and the cultivation of specialized talent.
	Capitalizing on supply chain reconfiguration and localized manufacturing trends.	Shifts in the global industrial environment are driving the semiconductor and electronics supply chains toward regionalization and diversification. This dispersion of equipment demand across different regions creates significant market expansion opportunities for equipment manufacturers that possess localized service capabilities and supply chain flexibility.

B. Unfavorable factors of the development prospect and countermeasures.

Item	Unfavorable factors	Explanation	Countermeasures
1	Enhancing the market's trust and confidence in domestic equipment brands remains a key focus for ongoing development.	Major international peers benefit from deep-seated brand recognition and high switching costs within the semiconductor and display sectors. Although domestic vendors are closing the technological gap, a preference for proven solutions in high-end processes remains prevalent among clients. This conservative sentiment regarding the qualification of new equipment poses a challenge to the speed of market penetration.	To foster greater customer confidence, we leverage our validation platforms and joint-development initiatives to ensure all processes are fully verified before deployment. Our ongoing commitment to R&D bolsters both our technical edge and product reliability. Furthermore, by delivering superior performance and service efficiency at a competitive price point, we are successfully accumulating the industry accolades and proven results necessary to solidify our brand standing in the market.

Item	Unfavorable factors	Explanation	Countermeasures
2	Fluctuations in the display industry’s business cycle influence capital expenditure and equipment demand from panel manufacturers.	As the LCD sector matures, market demand remains sensitive to business cycles, causing a strategic shift in capital spending from expansion to cost and efficiency optimization. This cautious investment climate has intensified price competition within the equipment market, presenting challenges to sustaining rapid revenue growth.	The Company continues to refine its product and market portfolios. On one hand, we are deepening our focus on production line upgrades, automation, and process improvement to meet existing demands; on the other, we are expanding into high-value application areas to mitigate the risks associated with single-industry fluctuations. Simultaneously, by enhancing technical capabilities and strengthening customer partnerships, we aim to increase equipment value-add and alleviate the impact of price competition on our operations.
3	Lengthy gestation periods for the commercialization of new products and technologies.	As the advanced packaging sector is characterized by rapid technical evolution and rigorous certification standards, the cycle from R&D to commercialization is inherently long. While we are deeply engaged in this field, the multi-level qualification process means that significant revenue impact may involve a longer gestation period and short-term fluctuations.	The Company adopts a synchronized development strategy, participating in technical validation at the early stages of process development. By utilizing our experimental and testing platforms, we assist clients in process optimization to enhance adoption success rates and shorten development timelines. Furthermore, through modular designs and staged implementation, we progressively expand equipment applications, improving the efficiency of commercialization and enhancing order visibility.
4	Challenges from fast-paced technological advancements and the inherent risks of R&D investment.	The constant evolution of semiconductor technologies and the emergence of novel applications necessitate continuous equipment upgrades. Any misalignment between our R&D roadmap and shifting market requirements could pose risks to our competitive position and the effective utilization of R&D resources.	To navigate the rapidly evolving landscape, we are strengthening our R&D agility and expanding our technical portfolio. Through strategic alliances with clients and industrial partners, we align our development with future technology roadmaps, reducing R&D uncertainty and ensuring a higher success rate for our innovative solutions.

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Item	Unfavorable factors	Explanation	Countermeasures
5	Challenges to operational stability posed by supply chain disruptions and geopolitical uncertainties.	Shifts in the global industrial landscape and supply chain reconfigurations pose potential challenges to the availability and cost of key components. Such disruptions can influence production stability and the timely fulfillment of equipment orders.	To ensure operational continuity, we are fortifying our supply chain ecosystem through strategic long-term collaborations and a multi-source procurement strategy. By boosting our local sourcing ratio and optimizing inventory control, we effectively shield the Company from external supply shocks and market instability.

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4.2.2 Applications and Production Process of Main Product

Main Applications

Industry category	Product category	Product name	Main uses
Semiconductor Industry	AOI	RDL Inspection and Circuit Repair	RDL Circuit Defect Inspection and Repair.
		PLP RDL OM Automatic Optical Measuring Machine	High-precision microscopic measurement system. Macro visual inspection function. Feasible automatic/manual measurement.
		Driver IC Six Side Inspection Equipment	Inspection equipment specially designed for display driver long ICs. It has a complete six-sided appearance defect inspection function. Defects above 5 microns can be detected. It has high UPH and OK/NG sorting functions.
		DBIM Composite Measuring and Inspection Machine	Inspection after Bonding, accurate measurement of various angles.
		AOI	2D and 3D simultaneous measurement.
	Automation	Handling System	Based on the automated dispatching system in the factory, transport magazine, tray, FOUP carriers between the processing sites during the processes, and move product information from upstream to the process stage and then to the downstream equipment.
		EFEM	Function of loading and unloading wafers and panel substrates. Highly integrated, and can serve as a bridge between equipment and CIM.
		VTL	Load and unload magazines and trays and push boats. Combined with the materials input and output functions of equipment. Highly integrated, and can serve as a bridge between the equipment and the transportation system.
		I-Box Automatic Inspection System	AiOT inspection system.
		Storage System	Combine turnkey production automation and factory planning to establish the warehousing system, provide a complete series of hardware and inventory control software, so that the production and arrival and shipment of materials on carriers in the turnkey process can achieve efficiency and precise inventory control.
	Laser Applications	EMC Laser Trimming	Laser trimming for epoxy molding compound on glass carrier edge.
		Laser Debond	Laser Lift off, selected wavelength to avoid wafer damage.
LCD Industry	Process Equipment	Sealant Ultraviolet	LCD curing of frame glue after lamination by UV LED.
		Nano Protusion	Non-contact(non-brush) liquid crystal molecular orientation alignment, using UV light for liquid crystals curing process.
		Photo Alignment UltraViolet	LCD photo molecular Orientation alignment process after coating for stable alignment of liquid crystals.
		Ultrasonic Dry Cleaner	Ultrasonic vibration makes the particles peel off from the surface of the product to achieve the removal effect.

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Industry category	Product category	Product name	Main uses
	AOI	Macro Inspection Equipment	Use different light sources (sodium lamp, LED white light, green light, converging light, LED strong light, etc.) to inspect glass defects.
		Glass appearance inspection equipment	Check the appearance of the upper glass (CF) and the lower glass (TFT) of the LCD panel for damage, cracks, missing corners, scratches, bubbles, punctures, bumps and other defects.
		Burr Check Equipment	Check whether the CF edge/TFT edge of the LCD panel is damaged, protruding, notch and other defects.
		Electrical Testing	Measure whether the electrical characteristics of the substrate are normal (Open / Short, insulation resistance, wire resistance).
		Lighting inspection after Demura	Light on the Panel, let the optics execute the Demura function to improve the quality.
		Light On Test	To check whether there are panel defects during light-on testing.
		PAD Inspection	To check whether there are defects on PAD of LCD.
	Automation	Loader/Unloader	Function of loading and unloading glass substrates. Highly integrated, and can serve as a bridge between equipment and CIM, System used in various process stages of the FPD and for integrating the serial parallel transmission of various process equipment.
		Dense Pack/Un-Pack	The equipment for packing and moving the finished LCD to LCM and unpacking LCM for back-end process. After the input of materials and the confirmation of a destination, the system will automatically send the product to the destination flow channel based on the preset corresponding logic, and complete the sorting action quickly and accurately, effectively improving the overall equipment production capacity.
		Factory Conveyance	The conveyance equipment that could connect with TFT/CF panel process equipment.
	Laser Applications	Cell Repair	LCD panel defect repair.
		Circuit Cutting	LCD panel circuit cutting.
LED Industry	Mini LED Equipment	Light On Test	Auto alignment probing to do light-on inspection for PAD before mass transfer.
		Repair	Accurate detection of LED defects and do the automatic rapid repair.
		Laser Drilling	Vacuum lamination + Inspection + Laser drilling 3 in 1.
		Tiling	Small size LEDs are attached to a wired sub-strate, and the protective film is removed after UV exposure.
		Laminating	SPB substrate is automatically aligned and attached to the screen to complete the soft LED display.
	Micro LED Equipment	Mass Transfer Equipment	The mass transfer techno-logy of optical coupling fu-sion can complete the mass placement and welding of Micro LED at the same time within milliseconds.
		Mass Repair	Optical coupling welding selective mass repair technology.
		API+LOT Light On Test	Auto alignment probing to do light-on inspection for PAD before mass transfer.
		Laser Trimming	Trimming / Removing NG LED by Laser.

Industry category	Product category	Product name	Main uses
		Single Chip Repair	Performing μLED single defect chip repair procedure.
		Glass Cutting	Special beam shaping technology, suitable for cutting hard and brittle transparent materials.
		Film Lamination	Backplane bonds with functional adhesive film by Vacuum lamination, ensuring that the final product is free of air bubbles.
		Film Laser Cutting	Remove the optical overflow glue around Micro LED by Femto UV LASER.
		High-Precision Module Tiling	The high-precision module splicing machine accurately attaches Tiles to the Support Board through the module transfer and film peeling mechanism.
		Metal Repair	Shaped path metal repair technology for open/short metal defects.
	Vacuum Process Equipment	Sputtering Equipment	Single-chamber, can be designed to work with metal sputtering, reactive sputtering, hybrid sputtering, surface cleaning and modification. Can be applied to product decoration film (NCVM), passive components (chip R), tool plating, diamond-like carbon (DLC) coating, anti-reflective coating (AR), RD process development equipment
		Coater Equipment	Adopt the concept of electron beam heating or thermal resistance heating. Single-chamber, can be designed to work with metal sputtering, reactive sputtering, hybrid sputtering, surface cleaning and modification. Can be applied to passive components (chip R) and display (TFT, OLED).
		Plasma Cleaner Equipment	Single chamber. Integrate advanced plasma technologies such as inductively coupled plasma (ICP) and reactive-ion etching (RIE). It can be used in the LED industry to remove photoresist residue (decum), blue film/organic matter removal (blue tape clean), wafer regeneration cleaning (wafer reclean), green paint layer surface cleaning (solder mask clean), cleaning before packaging in the packaging industry.
		Microwave plasma desmear equipment	Removes the phenomenon of slag blocking the conductive copper layer formed after laser drilling is completed, using highly directional microwave plasma + biased RF plasma source, provide diverse equipment configurations based on substrate size.
		Plasma Etching Equipment	Seed layer etching, descum, desmear, carbon layer removal after laser stripping.
Other	Maintenance & Repair Services	Solid-state laser maintenance and repairs	Equipment repair and maintenance services enable equipment to maintain a high availability rate.
	Spare Parts & Consumables	Light-on fixtures, light boxes, pump O/H, and other equipment spare parts	Update and maintenance services designed for components with a high unit price and consumables in response to customers' different product.

Process Flow

4.2.3 Supply Status of Main Materials

Material name	Supply Status
Electrical and electronic components	Stable
Transmission parts	Stable
Optoelectronic components	Stable
Machined parts	Stable

4.2.4 The Purchases (Sales) Amount and Percentage of Suppliers and Customers Accounting for More than $10\%$ of the Total Purchases (Sales) Amount in the Past Two Fiscal Years.

Major Suppliers:

Unit: NT$ in thousands; %

	2024				2025
No.	Name	Amount	Percentage of Total Purchases (%)	Relationship with the issuer	Name	Amount	Percentage of Total Purchases (%)	Relationship with the issuer
1	Company A	122,318	13.04%	None	Company A	161,403	13.67%	None
	Others	815,811	86.96%		Others	1,019,573	86.33%
	Net Purchases	938,129	100.00%		Net Purchases	1,180,976	100.00%

Description: Vendor A is a supplier of original components for vacuum equipment (such as electron guns & power supplies, thickness monitors, pumps, etc.). Due to an increase in order demand for said equipment in 2025, the total purchase amount from this vendor has risen accordingly.

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Major Clients:

Unit: NT$ in thousands; %

No	2024				2025
	Name	Amount	Percentage of Total Sales (%)	Relationship with the issuer	Name	Amount	Percentage of Total Sales (%)	Relationship with the issuer
1	Company A	24,226	0.93%	None	Company A	419,172	14.60%	None
2	Company B	947,373	36.38%	None	Company B	303,451	10.57%	None
	Others	1,632,287	62.69%		Others	2,148,061	74.83%
	Net Sales	2,603,886	100.00%		Net Sales	2,870,684	100.00%

Description: In 2025, the revenue share from Customer A increased as a result of successive order deliveries throughout the year.

4.3 Number of Employees in Service in the Last Two Years and up to the Publication Date of This Annual Report

2026.03.31

Year		2024	2025	As of March 31, 2026
Employee count	Direct employees	140	165	165
	Indirect employees	475	425	427
	Total	615	590	592
Average age		39.61	35.24	35.28
Average service years		10.12	10.29	10.34
Education background distribution (%)	Doctorate	1.95	1.69	1.69
	Masters	28.29	27.12	27.29
	College or University	63.91	64.41	64.07
	High School	5.85	6.78	6.95
	Below High School	—	—	—

4.4 Environmental Protection Expenditure

None.

4.5 Labor Relations

4.5.1 The Company's employee welfare measures, continuing education, training, retirement regulations and their actual implementation, along with employer-employee agreements, and measures for protecting employee rights:

Welfare measures

Our employee welfare measures are subject to the Labor Standards Act and relevant laws and regulations, and include the following items:

(1) Comprehensive talent cultivation programs and employee education and training planning systems.

(2) People-friendly promotion and rotation system.

(3) Full-time employees are eligible for comprehensive insurance benefits such as labor, national health and free group insurance policies.

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(4) Employee assistance programs such as wedding gifts, maternity subsidies, injury subsidies, birthday gifts, etc.
(5) Free cafeteria food.
(6) Employee activity subsidy.
(7) Annual employee health checks and consultations.
(8) Contracted service providers offering employee discounts. Employee uniform.
(9) Free indoor and outdoor parking spaces.
(10) Free use of the corporate fitness center.

2. Continuing education and training

We value employees' career planning and is committed to talent cultivation. We actively encourage employees to participate in various training courses offers either inside or outside the Company. Internal training courses are for the exchange of professional skills used within the Company to improve the productivity of employees. Employees may be dispatched to attend external seminars and courses according to the Company's needs, which provide employees with excellent professional training opportunities.

Information on 2025 training is shown in the table below:

Items	Hours of Training	Person-Time	Training Expenses (thousand NT$)
Training of professional competence	4,214.55	1,590	435
General knowledge	8,603.7	2,988	137
Training of new hires	422.17	120	-

3. Retirement system

In response to the implementation of the new labor retirement system, we have completed the consultation with employees before July 1, 2005. For employees who choose the new system, 6% of the total salary will be appropriated for the retirement account every month. For those who choose the old system, 2% of the total salary is still appropriated every month for the labor pension reserve account at the Bank of Taiwan. The standard for the application for payment of pension and the payment method are subject to the Labor Standards Act.

4. Measures to protect the rights and interests of employees

We have formulated the "Work Rules" based on the Labor Standards Act and relevant laws and regulations, which stipulate the provisions for protecting employees' and applicants' rights and interests. We have also formulated the "Measures for Grievances and Punishment Against Sexual Harassment" to protect employees' right to work. New hires will undergo education and training sessions on the day when they report to their work, so that they can understand the current work standards to protect their rights.

5. Employee-employer negotiation

The rights and obligations of both employers and employees are specified in the provisions of the employee handbook. Since the establishment of the Company, both employers and employees have been able to maintain a harmonious relationship. We have

not suffered losses caused by labor disputes. In order to continue to maintain a harmonious employee-employer relationship, the management values the use of communication channels between employees and the Company, and implements a people-oriented management system aiming to create a better future together with employees.

Protection measures for work environment and employees' personal safety

We implement the following safety measures for the protection of the work environment and the personal safety of employees:

(1). Industrial safety management:

(A) Formulate the "Labor Safety and Health Work Rules" and set up a dedicated occupational safety and health management unit to coordinate planning, supervision and implementation of labor safety and health matters, and reinforce employees' personal safety protection measures in the workplace.

(B) Regularly implement work environment monitoring in response to the risks at job sites, and announce the inspection results to the employees. Items that fall out of the control standard require immediate improvement.

(C) Carry out regular inspections of all machines in the factory and self-inspection before operation, and provide employees with safe work machines and tools and protective equipment.

(D) Regularly implement relevant safety and health education and training for employees in accordance with the Occupational Safety and Health Education and Training Rules

(2). Fire safety:

Regularly maintain and repair fire-fighting equipment (such as fire switchboard system, fire extinguishers, etc.) in the factory, assigns dedicated personnel to regularly conduct inspection and keep records. Any faults found are immediately repaired or replaced. Regularly hold fire drills and earthquake evacuation drills in the factory areas every year, so that all employees can understand ways to emergency escape and evacuation in the factory.

(3). Factory Surveillance Cameras:

In order to effectively manage and monitor on-site conditions, surveillance cameras are installed within the factory. Through remote monitoring, real-time site conditions can be observed. If any issues or violations by personnel occur, immediate alerts can be provided to prevent harm and enhance factory safety.

(4). Access control security:

We have security personnel availability 24 hours a day. Surveillance cameras and access control systems are installed at all entrances and exits and corner areas. Those without qualified authorization are not allowed to enter the factory areas or related work areas. Night and weekend patrol management is implemented to protect employees' personal safety.

(5). Employee health:

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(A) Regularly commission qualified medical institutions to conduct comprehensive health examinations for our employees annually. This initiative reflects our deep commitment to the physical and mental well-being of our workforce.

(B) Arrange physicians to visit the factory every month to provide health consultation services to employees.

(6). Regularly hold health promotion courses and activities to provide employees with a physically and mentally safe work environment.

(7). Factory area safety: Complete public safety inspections for buildings every year to provide employees with a safe work environment.

4.5.2 Losses incurred by labor disputes (including labor inspection results found in violation of the Labor Standards Act, specifying the disposition dates, disposition reference numbers, the articles of law violated, and the content of the dispositions) in recent years as of the Date of this Annual Report, potential disputes and appropriate countermeasures: None.

4.6 Cybersecurity management

4.6.1 Describe the cybersecurity risk management framework, the security policy, the specific management plan, and the resources committed to cybersecurity management, etc.

Cybersecurity risk management framework

The Information Security Committee is responsible for planning and promoting information security-related policies. The company's General Manager serves as the convener, with department heads at the director level and above (including heads of directly affiliated departments) as ex officio members. Various execution teams are established under the committee to carry out tasks related to the company's information security management.

The Information Security Committee holds an annual security review meeting to assess the company's information security implementation. The Human Resources Department must include information security training in new employee orientation and annual training programs to educate employees on managing and handling the company's and partner organizations' confidential information.

Department heads must regularly review and update risk management plans based on organizational changes, business relationship shifts, modifications to information processing facilities and systems, annual audit plans, legal requirements, and the latest trends. The company is committed to maintaining its ISO/IEC 27001:2022 certification by October 2025.

Information security policy

Definition:

Maintain the normal operation of our information and communication systems, strengthen the security monitoring and management of information, documents, physical facilities and the environment, protect the confidentiality, integrity and availability of information with policies and regulations and various control measures.

Policy:

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Ensure that the information security policies and objectives are compatible with the Company's strategic direction, so as to provide a reliable information security operating environment. Maintain the legal use of information systems and data, and ensure the continuous normal operation of the Company's business to achieve information security management goals.

Objectives:
Comply with the requirements of laws, regulations and contracts. Effectively protect the intellectual property, business secrets and personal data exchanged between the Company and other organizations. Ensure the confidentiality, integrity and availability of information assets to provide continuously available services.

Principles:
Personnel who violate information security regulations are punished based on the seriousness of the circumstances. If the infringement of intellectual property causes losses to the Company, the related losses will be recovered through legal means in addition to the punishment given. Information security policies and management procedures should be regularly and objectively evaluated every year to reflect the latest status of the Company's information security management policies, laws, and technologies, so as to ensure the feasibility and effectiveness of information security.

Information security-specific management plan, and the resources committed to cybersecurity management

We have formulated comprehensive information security management measures to classify management measures and control the functions of our key manufacturing operations:

3.1. Computer usage management
Select hardware equipment with security protection capabilities at the procurement phase and incorporate the use of information security solutions. In terms of usage management, set appropriate system authorization according to the confidentiality level of information, request for mandatory password change every 30 days and adopt the password complexity rules, and prohibit downloading and installation of unauthorized software.

3.2. Defense against hackers and virus detection
Integrate firewall, anti-virus, intrusion detection and virus blocking functions into the ISP gateway, and extend the defense to servers and users by installing anti-virus system for interception. Important servers are separated from the user end by a dedicated firewall to prevent attacks from within the Company.

3.3. Email management
Adopt anti-spam measures to prevent spam from entering, reinforce the heterogeneous dual anti-virus detection measures to prevent virus intrusion, and form a triad anti-virus defense with the user end to improve security.

3.4. Employee education and training

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Organize information security training and promotion from time to time, including e-mail social engineering drills and follow-up courses, information security education and training for all employees in the factory, education and training for abnormal virus detection, announcement of information security events from time to time every month. Multi-pronged approach in the routine drills is adopted to improve employees' awareness of information security, further strengthening the Company's information security defense system.

3.5. Remote work management

Remote work connected to the Company's system via an external network can only access information systems at medium or normal security levels, non-sensitive personal data and non-confidential data, and the computers should be equipped with protection mechanisms specified by the Company. Access to information systems with a high security level, sensitive personal data, and confidential information can only be done through the Company's internal or VPN network operations, and cannot be done through unencrypted public network connections. VPN accounts may only be activated with the approval of the highest-ranking supervisor and must utilize a two-factor authentication mechanism.

3.6. Backup and redundancy

The information system framework establishes high-availability off-site server backup and data backup mechanisms based on their risk levels to ensure uninterrupted services, and backup media is sent to off-site storage. Strengthen various simulation tests and emergency response drills in the computer room to ensure normal operation of the information system and data preservation, which can reduce the risk of system interruption caused by natural disasters without warning and human error, further ensuring that the target time for expected system recovery is met.

3.7. Information security management solutions and resources

The Company is located in the Southern Taiwan Science Park. Benefiting from the promotion of information resources by the Park, we have joined the Science Park Information Sharing and Analysis Center (SP-ISAC) as a member to obtain information on the latest information security threats and updates and education and training services through the website system, which enables companies in the Park to obtain the best information security defense channels and adaptability. Once we quickly obtain information on threats, we directly add that into the gateway defense database for effective blocking. To strengthen information and communication security management, an information security officer and a dedicated information security personnel are assigned in accordance with legal regulations. A monthly information security meeting is held to review security-related matters, and an annual management review meeting is conducted to assess and approve improvements to the annual information security management plan.

3.8. Implementation of Cybersecurity Managed Services Platform

Implementing managed security services, the company utilizes a SIEM system to collect and analyze logs from various internal systems. The system automatically analyzes data based on the real-time external threat database, Open Threat Exchange (OTX). In the

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event of a critical incident, administrators are promptly notified via communication software to take appropriate action.

3.9. Implementation of EDR on all critical systems and personnel computers

EDR (Endpoint Detection and Response) represents an advanced evolution in antivirus technology. By detecting and analyzing suspicious behavior, EDR has the capability to identify previously unknown threats. It provides security teams with the necessary visibility and automation to accelerate incident response, prevent the spread of endpoint attacks, and offer additional protection in the event of a data breach.

EDR continuously monitors endpoints and retains a complete activity log to detect suspicious activities in real time. It analyzes this data to determine whether a threat requires investigation and remediation. The system generates prioritized alerts, ensuring security teams can address the most critical issues first. Additionally, EDR provides visibility into the full intrusion timeline and scope, helping security teams conduct thorough investigations. Before threats can spread, EDR automatically contains or remediates them.

3.10. Comprehensive Upgrade of End-of-Life Operating Systems

As support for Windows 10 ended last year, a budget was allocated and work commenced early last year to update or upgrade Windows 10 systems to Windows 11. Additionally, the upgrade of Windows Server hosts that reached their end-of-support status has been progressively completed.

3.11. Improvement of Server Room Infrastructure

To accommodate the continuous increase in server room equipment, air conditioning facilities have been redesigned. Two new high-capacity cooling units with mutual redundancy have been installed to ensure that temperature and humidity remain within the ranges required by ISO 27001, guaranteeing the stable operation of equipment. Furthermore, to prevent significant hardware damage from rack tip-overs during earthquakes, anchoring and stabilization work has been performed on every equipment rack.

3.12. SEMI E187 Self-Inspection

Although official SEMI E187 certification bodies are not yet operational, the Company has initiated self-compliance measures. Starting this year, self-inspections for E187 compliance will be conducted on semiconductor equipment prior to shipping. A report will be generated for each case, and the scope of these inspections will be expanded to all equipment types depending on the initial implementation results.

4.6.2 List the losses, possible impacts and countermeasures of major information security incidents in the most recent year and up to the date of publication of the annual report. If it cannot be reasonably estimated, the facts that cannot be reasonably estimated shall be stated: None.

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4.7 Important Contracts

Contract Classification	Contract Company	Contract Duration	Main Contents	Term Limits
Land lease agreement	Southern Taiwan Science Park Bureau	2024.01.01~2043.12.31	Land lease agreement	None
Land lease agreement	Southern Taiwan Science Park Bureau	2025.01.01~2044.12.31	Land lease agreement	None
Long-term loan agreement	Bank SinoPac	2024.06.27~2034.06.27	Long-term loan agreement	None
Factory rental agreement (Subsidiary- F.S.E)	Pai Hui Paper Company Ltd.	2021.05.01~2026.04.30	Factory rental agreement (Subsidiary- F.S.E)	None

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

5.1 Analysis of Financial Status

Unit: NT$ in thousands

Year Item	2025.12.31	2024.12.31	Difference
			Amount	%
Current Assets	4,175,738	4,251,115	(75,377)	(1.77)
Property, Plant and Equipment	198,559	190,762	7,797	4.09
Intangible Assets	46,076	54,086	(8,010)	(14.81)
Other Assets	1,188,882	1,284,006	(95,124)	(7.41)
Total Assets	5,609,255	5,779,969	(170,714)	(2.95)
Current Liabilities	1,699,450	1,976,979	(277,529)	(14.04)
Non-Current Liabilities	439,776	500,560	(60,784)	(12.14)
Total Liabilities	2,139,226	2,477,539	(338,313)	(13.66)
Shareholders’ Equity
Attributable to Shareholders of the Parent	3,220,445	3,065,943	154,502	5.04
Capital Stock	1,648,178	1,648,178	-	-
Capital Surplus	467,121	467,086	35	0.01
Retained Earnings	1,023,253	879,602	143,651	16.33
Other Equity	81,893	71,077	10,816	15.22
Treasury Shares	-	-	-	-
Non-controlling Interests	249,584	236,487	13,097	5.54
Total Equity	3,470,029	3,302,430	167,599	5.08
1. Explanation of the reason for changes: (For the amount that changed by more than 20% and exceeded NT$10 million) No material change. 2. Impact and future response plan: None

5.2 Analysis of Financial Status

5.2.1 Analysis of Financial Performance

Unit: NT$ in thousands

Item	2025	2024	Difference	%
Operating Revenue	2,870,684	2,603,886	266,798	10.25
Operating Cost	2,060,590	1,918,574	142,016	7.40
Gross Profit	810,094	685,312	124,782	18.21
Operating Expense	533,270	654,449	(121,179)	(18.52)
Profit from Operations	276,824	30,863	245,961	796.94
Non-operating Income and Expenses	58,968	168,526	(109,558)	(65.01)
Profit (loss) before Income Tax	335,792	199,389	136,403	68.41
Profit (loss) from Continuing operations	266,821	173,907	92,914	53.43
Net Profit (loss) for the Year	266,821	173,907	92,914	53.43
Other Comprehensive Loss for the Year	28,882	87,689	(58,807)	(67.06)
Total Comprehensive Income for the Year	295,703	261,596	34,107	13.04
Net profit attributable to Owners of the company	224,775	130,501	94,274	72.24
Total comprehensive income attributable to Owners of the company	253,358	217,356	36,002	16.56
1. Explanation of the reason for changes: (For the amount that changed by more than 20% and exceeded NT$10 million)
(1) The increase in operating profit, profit before tax, net profit from continuing operations, net profit for the period, and net profit attributable to owners of the parent was primarily due to revenue growth, the collection of receivables, and the recognition of gain on reversal of expected credit losses.
(2) Non-operating income and expenses decreased, primarily due to exchange losses resulting from the appreciation of the New Taiwan Dollar against the U.S. Dollar.
(3) The decrease in other comprehensive income for the period was primarily due to the decrease in unrealized gains on investments in equity instruments measured at fair value through other comprehensive income.
2. Impact and future response plan:
The Company continues to secure orders from existing industry partners while actively expanding into the semiconductor business. This strategy aims to mitigate the impact of industry-specific business cycles and drive long-term growth and competitiveness.

5.2.2 Expected Sales Volume in 2021 and it's Basis

We will grasp the opportunities of 2025 capital expenditure increase of our clients in various industries based on the past sales performance in order to increase the sources of operating revenue.

5.2.3 The possible effects and the countermeasures regarding the Company's financial outlook

We are considered financially healthy, and it is expected that our future business will be stable, so there is no significant uncertainty in our future financial position.

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5.3 Analysis of Cash Flow

5.3.1 Analysis of Financial Performance

Unit: NT$ in thousands

Item	2025	2024	Difference (%)
Net cash generated from (used in) operating activities	650,033	680,753	(4.51)
Net cash generated from (used in) investing activities	(41,678)	(322,856)	(87.09)
Net cash used in financing activities	(220,188)	(390,692)	(43.64)

Analysis of percentage increase / decrease:

Cash flows from investing activities: Primarily due to the acquisition of financial assets measured at amortized cost in 2024.
Cash flows from financing activities: Primarily due to the payment of cash dividends and the repayment of borrowings.

5.3.2 Improvement plan for insufficient liquidity: None.

5.3.3 Remedy for Cash Deficit and Liquidity Analysis.

Unit: NT$ in thousands

Cash balance at the beginning of the year (1)	Estimated annual net cash provided by operating activities (2)	Estimated annual cash outflow (3)	Estimated cash surplus (deficit) (1)+(2)-(3)	Remedial measures for cash deficit
				Investment plan	Financing plan
2,419,242	129,432	832,596	3,382,108	–	–

Analysis of estimated cash flow:

It is projected that the Company will remain profitable in 2026 and continue to collect accounts receivable, resulting in a net cash inflow of NT$129,432 thousand. Additionally, the Company completed a private placement of 20,000 thousand common shares in the first quarter, raising NT$1,017,600 thousand. These funds, combined with the net cash inflow from operating activities, will be utilized for dividend payments and partial repayment of bank loans. The total net cash inflow for the year is estimated at approximately NT$962,028 thousand, and no cash deficit is anticipated by the end of the period.

Remedial measures for estimated cash deficit and liquidity analysis: None.

5.4 Major Capital Expenditure Items

7.4.1 The utilization and funding sources for major capital expenditures: None.

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5.5 Investment Policy in the Last Year, Main Causes for Profits or Losses, Improvement Plans and Investment Plans for the Coming Year

7.5.1 Investment Policy in the Last Year, Main Causes for Profits or Losses and Improvement Plans

2025.12.31
Unit: NT$ in thousands

Item Company	Investment Amount	Net Income (Loss) of the Investee	Investee policy	The main reasons for the profit or loss.	Improvement plan.
Control Holdings Ltd.	9,450	7,409	Through the investee, we have established a subsidiary in Ningbo, China to operate import/export business to serve customers nearby.		None
F.S.E Corporation	431,619	184,201	Research and development, manufacturing, sales of semiconductor equipment, and components of semiconductor facilities.	The company has stable profits due to the continuous receipt of orders.	None
iAmech Technology Inc	95,550	450	Manufacturing of mechanical equipment and electronic components	.	None
Ever Lumin Incorporation	230,000	(489)	Manufacturing of mechanical equipment, electronic components and optical instruments	Due to consecutive years of ongoing losses, the company is preparing to cease operations.	None

5.5.2 Investment Plans for the Coming Year: None.

5.6 Analysis of Risk Management

5.6.1 Impacts of any fluctuation of interest rates and exchange rates and inflation on Company's profit (loss) and the future countermeasures:

Unit: NT$ in thousands

项目	2025		2024
	Amount	Pre-tax Income	Amount	Pre-tax Income
Interest Expense	11,179	3.33%	14,071	7.06%
Profit(less) on Exchange	(768)	(0.23%)	86,140	43.20%

Data: Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

Changes in interest rates:

(1) Impact on the Company's profit and loss: The interest rate risk of the Company and subsidiaries is mainly the payment for liabilities arising from operating activities. In order to reduce the interest rate risk, we mainly use the cash received from operating activities to meet the need for funds. The long- and short-term financing of the Company and subsidiaries are debts with floating interest rates. Changes in market interest rates will cause changes in the effective interest rates of long- and short-term borrowings, which will cause fluctuations in future cash flows. We will continue to negotiate for preferential interest rates in the future to cut costs. The current market is showing trends of interest rate hikes, but our borrowing level has been greatly reduced, so the risk of interest rate changes has little impact on our position.

(2) Future response measures: If our interest expenses increase due to the need for borrowings from banks in the future, the impact of interest rate changes on our profit and loss will increase accordingly. We will continue to monitor interest rate changes and take necessary response measures to reduce the impact of interest rate changes on our profit and loss.

Changes in exchange rates:

(1) Impact on our profit and loss: Our foreign-currency assets are greater than foreign-currency liabilities, and the NT dollar appreciated against the U.S. Dollar in 2025, leading to foreign exchange losses.

(2) Future response measures: In recent years, the Company and subsidiaries have continued to have a certain proportion of sales from export, and changes in exchange rates still have an impact on profits. Therefore, our personnel will continue to monitor factors related to exchange rate changes in order to reduce its impact on our profit and loss. The proportion of sales through export will gradually increase in the future. In order to avoid the possible impact of exchange rate fluctuations on our profits, we will take the following response measures depending on the circumstances:

120 -

A. Depending on the need for working capital and the fluctuations of exchange rates, we determine the appropriate cut-off points for settlement of foreign exchange and payment for goods to achieve risk management of exchange rates.

B. As the proportion of export sales decreased, we use the foreign currency generated by sales to directly repay the foreign currency debts generated by the purchase of goods, so as to achieve natural hedging.

C. We take measures to engage in domestic and foreign exchange hedging to avoid exchange losses caused by exchange rate fluctuations.

Inflation:

(1) Impact our the Company's profit and loss: There was no significant inflation during 2025 and up to the publication date of this annual report. We constantly monitor fluctuations in market prices and maintain good relationships with our suppliers and customers, so there has been no significant impact on our profit and loss due to inflation.

(2) Future response measures: We continue to monitor changes in the relevant economic environment and market condition to avoid adverse effects of inflation on our profit and loss.

5.6.2 Policies on high-risk, highly leveraged investments, lending funds to other parties, endorsement, guarantees, and financial derivative transactions, main reasons for the profits or losses generated thereby, and future response measures to be undertaken:

Policy and main reasons contributing to the profit or loss:

(1) We adopt a prudent and conservative approach in our financial policy. In 2025 and as of the date of publication of the annual report, we have not engaged in high-risk and highly leveraged investments and derivatives trading.

(2) The counterparty of our lending of funds and provision endorsement and guarantee are our subsidiaries in the consolidated entities. Steps are taken in accordance with the "Procedures for Lending Funds to others" and the "Operating Procedures for Loans to Others and Endorsement and Guarantee", and have complied with relevant laws and regulations.

Future response measures:

We have formulated the "Measures for Handling Acquisition or Disposal of Assets", the "Operating Procedures for Endorsement Guarantee" and the "Operating Procedures for Loans to Others", which have been approved by the shareholder resolution. We will perform relevant tasks in accordance with these procedures in the future.

121 -

5.6.3 Future R&D plans and projected investment schedules and R&D expenses:

Future R&D plans:

Project objective	Product name	Main purpose
(1) Development of key technologies for Large Generation G6 Micro LED displays	(1) G4.5 COC2 Mass Transfer Equipment	(1) Layout of next generation display industry
(2) Laser debonding system development	(2) Laser Debond System	(2) Layout of advanced packaging processes applications
(3) Development of Laser-Assisted Bonding Technology for 600mm Panel-Level Packaging	(3) Laser Assisted Bonding Equipment
(4) Development of RDL Repair Technology	(4) Laser-based RDL Repair Equipment

Projected R&D expenses

Research and development are the keys to enhancing the Company's competitiveness, obtaining new technologies and products, and maintaining the sustainable growth. We expect to commit about NT$110,000 thousand on research and development for 2026.

5.6.4 The changes of domestic and overseas important policies and laws and its impact on the Company's financial operations, and the countermeasures:

The Company's management keep track of the changes in key policies and laws both at home and abroad, and take response measures in a timely manner.

5.6.5 The impact of technological changes (including information security risks) and industry shifts on the company's financial and business operations, as well as corresponding countermeasures.

We follow up on the evolution of technology development in the LCD, LED, flexible electronics and semiconductor industries, and take steps to assess research and development that can meet market trends. In recent years, we have not encountered technology changes that greatly impact our financial position. Detailed (5.6.13) explanation of information security risks.

5.6.6 Potential Impacts of Changes in Corporate Image on Corporate Crisis Management and Their Countermeasures:

Since the establishment of the Company, we have actively reinforced our internal management and formed our core values. We have a good corporate image, and haven't encountered changes in the corporate image resulting in a corporate crisis. In future, we will follow the various requirements of corporate governance and invite experts to provide consultation to mitigate potential crisis caused by changes in corporate image.

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5.6.7 Anticipated Benefits and Potential Risks of Mergers and Acquisitions and Their Countermeasures:

None.

5.6.8 Anticipated Benefits and Potential Risks of Capacity Expansion and Their Countermeasures:

None.

5.6.9 Potential Risks of Concentrated Procurement and Sales, and Countermeasures

Purchase:

Our main production and sales items are mechanical equipment, which consists of mechanical and electrical parts, drive parts, photoelectric parts, processed parts, etc., and the number of components required by each composition is large, so there are many suppliers and the proportion of the purchase amount is distributed. In order to achieve balanced procurement, we inquire and purchase from two or more suppliers at the same time for the same materials, and maintain a good relationship with the suppliers to avoid the risk of insufficient supply due to force majeure. We have not yet encountered risks caused by concentrated procurement.

Sales:

Since the counterparties of sales are domestic panel makers. If the panel makers hand over their capital expenditures to equipment makers with whom they have close collaboration or those with sufficient production capabilities, it can easily lead to concentrated sales for equipment makers, which can be inevitable in some cases. Currently, semiconductor packaging factories are actively incorporating the use of automated equipment, and we have also become part of the supply chain of some panel manufacturers in China to reduce the risk of concentrated sales.

5.6.10 Potential Impacts and Risks of the Sales or Transfers of Significant Numbers of Shares by the Company's Directors, Supervisors, or Major Shareholders Holding More Than 10% of Outstanding Shares and Their Countermeasures:

None.

5.6.11 Potential Impacts and Risks of Changes of Management Right and the Countermeasures:

None.

5.6.12 Litigations and Non-Litigated Incidents:

None.

5.6.13 Other Material Risks and Countermeasures:

Information security risk assessment and response measures

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Malicious attacks on the Internet have become more rampant. Hackers always try to put computer viruses, destructive software or ransomware into our network system to disrupt our operations, gain control of the computer system for blackmailing, or spy on confidential information. These attacks may force us to compensate customers for losses due to delay or interruption of orders. Our system may lose critical data, and R&D assembly work may also be shut down caused by the attacks. Therefore, we have reinforced our network security system by incorporating the use of information security system for active defense against attacks. We also disseminate the importance of information security to employees from time to time to improve their awareness

The Company have formulated comprehensive information security management measures to classify management measures and control the functions of our key manufacturing operations:

Computer usage management

Select hardware equipment with security protection capabilities at the procurement phase and incorporate the use of information security solutions. In terms of usage management, set appropriate system authorization according to the confidentiality level of information, request for mandatory password change every 30 days and adopt the password complexity rules, and prohibit downloading and installation of unauthorized software.

Defense against hackers and virus detection

Integrate firewall, anti-virus, intrusion detection and virus blocking functions into the ISP gateway, and extend the defense to servers and users by installing anti-virus system for interception. Important servers are separated from the user end by a dedicated firewall to prevent attacks from within the Company.

Email management

Adopt anti-spam measures to prevent spam from entering, reinforce the heterogeneous dual anti-virus detection measures to prevent virus intrusion, and form a triad anti-virus defense with the user end to improve security.

Employee education and training

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We have established a set of network and computer security protection system to control important functions of our manufacturing operations. We still review and evaluate network policies and procedures to ensure their adequacy and effectiveness.

5.7 Other Significant Matters

None.

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VI. Special Disclosures

6.1 Summary of Affiliated Companies

6.1.1 Consolidated Business Report of Affiliates:

For information on the organizational structure and operational overview of affiliated enterprises, please refer to the Consolidated Business Report of Affiliated Enterprises on the MOPS+ website under Individual Company > Electronic Document Download > Affiliated Enterprises Three-Statement Section at: https://mopsov.twse.com.tw/mops/web/t57sb01_q10

6.1.2 Consolidated Financial Statements of Affiliated Companies:

In 2025 (from January 1 to December 31, 2025), the affiliated companies required to be included in the consolidated financial statement of affiliated companies under the 'Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises' are the same as those included in the consolidated financial statement of the parent company and subsidiaries prescribed by the International Financial Reporting Standards No. 10 (IFRS 10), which is recognized by Financial Supervisory Commission ROC. All the relevant information to be disclosed in the consolidated financial statements of affiliated companies has already been disclosed in the consolidated financial statement of the parent company and the subsidiaries. Thus, the consolidated financial statements of affiliated companies are not reported separately.

6.1.3 Relationship Report of Affiliated Companies:

None.

6.2 Private Placement Securities in the Most Recent Years:

Please refer to the Market Observation Post System > Theme Zone > Investment Zone > Private Equity Zone > Private Equity Zone

https://mops.twse.com.tw/mops/#/web/t116sb01

6.3 Other Supplementary Notes:

None.

126 -

VII. Other Issues

None.

127 -

Control Technology Co., Ltd.

Chairman : Jui-Hsiung Yen

AI assistant

Contrel Technology Co., Ltd. — Annual Report 2025

72765_rns_2026-06-03_398a3960-f29f-464d-bcb8-bab1ae679460.pdf

Control Technology Co., Ltd.

2025 Annual Report (Translation)

Notice to readers

VI. Special Disclosures...126

VII. Other Issues...127

1.2 2026 business plan

1.2.1 Business guidelines

1.2.2 Expected sales and its bases

1.2.3 Important manufacturing and sales policies

1.3 Future development strategies

1.4 Impact of the competitive environment, regulatory environment, and macroeconomic environment

(2) Independence of the Board of Directors :

2.3 Corporate Governance

2.3.1 Board of Directors

2.3.4 Operations of the Remuneration Committee :

2. Information on the operations of the Remuneration Committee

2.3.10 Internal Control System and Implementation Status

2.4 CPA Service Fees:

2.5 Change of CPA:

2.6 The name and title of any Company Chairman, General Manager, and Officers of Finance or Accounting who have held positions at the appointed CPA firm or its affiliates in the past year shall be disclosed along with their tenure period at said CPA firm or affiliates:

2. Type of shares

3.1.2 List of Major Shareholders

3.1.3 Dividend Policy and Implementation Status

3.2 Corporate Bond

3.3 Preferred Stocks

3.4 Global Depository Receipts

3.5 Employee Stock Options

3.6 Status of employee restricted stock awards

3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions

3.8 Financing Plans and Implementation

4. New products development

4.1.2 Industry overview

1. Status and development of the industry

(1) LCD panel industry

Estimated Chip Market Value for Micro LED Display Applications (US$M)

(3) Semiconductor Industry

4.1.3 Overview of technologies, research and development

4.1.4 Long-term and short-term business development planning

4.2 Markets, production, and marketing

4.2.1 Market analysis

e. Laser applications

C. Grasp the source of key components

D. Development of new processes and optimization of existing processes

4.3 Number of Employees in Service in the Last Two Years and up to the Publication Date of This Annual Report

4.4 Environmental Protection Expenditure

4.5 Labor Relations

2. Continuing education and training

3. Retirement system

4. Measures to protect the rights and interests of employees

5. Employee-employer negotiation

4.6 Cybersecurity management

3.5. Remote work management

3.6. Backup and redundancy

3.7. Information security management solutions and resources

3.8. Implementation of Cybersecurity Managed Services Platform

4.7 Important Contracts

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

5.1 Analysis of Financial Status

5.2 Analysis of Financial Status

5.2.1 Analysis of Financial Performance

5.2.2 Expected Sales Volume in 2021 and it's Basis

5.2.3 The possible effects and the countermeasures regarding the Company's financial outlook

5.3 Analysis of Cash Flow

5.3.1 Analysis of Financial Performance

5.3.2 Improvement plan for insufficient liquidity: None.

5.3.3 Remedy for Cash Deficit and Liquidity Analysis.

5.4 Major Capital Expenditure Items

5.5 Investment Policy in the Last Year, Main Causes for Profits or Losses, Improvement Plans and Investment Plans for the Coming Year

5.7 Other Significant Matters

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Contrel Technology Co., Ltd. Annual Report 2025