Stock Code: 6205

OXOC

CHANT SINCERE CO.,LTD.

2025 Annual Report

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 version and the Chinese version, the Chinese version shall prevail.

Enquiry on the annual report: http://mops.twse.com.tw

Published on March 30, 2026

Spokesperson and acting spokesperson

Spokesperson: Wei-Li Hsu

Title: Senior Administrative Manager

Phone: (02)8647-1251

E-mail: [email protected]

Deputy Spokesperson: Chung-Ying Su

Title: Financial Manager

Phone: (02)8647-1251

E-mail: [email protected]

The address, and telephone number of the Company's headquarters and factories

Headquarters: 7F-2, No.188, Sec. 3, Datong Rd., Xizhi Dist., New Taipei City.

Phone: (02)8647-1251

Factory: 3F-1, No.190, Sec. 3, Datong Rd., Xizhi Dist., New Taipei City.

Phone: (02)8647-1251

Stock transfer service

Name: Yuanta Securities Co., Ltd.

Address: B1F, No. 67, Sec. 2, Dunhua S. Rd., Da'an Dist., Taipei City

Phone: (02)2586-5859

Website: http://www.yuanta.com.tw

Certifying CPA of last-year financial statements

CPA: Li, Yan-Na and Cheng, Ya-Huei

CPA Firm: PricewaterhouseCoopers, Taiwan

Address: 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City

Phone: (02)2729-6666

Website: www.pwc.tw

the name of any exchanges where the company's securities are traded offshore, and themethod by which to access information on said offshore securities: N/A
Company website: http://www.coxoc.com.tw

One. Report to Shareholders 1

Two. Corporate Governance Report 6

I. Background information of directors, supervisors, the president, vice presidents, assistant vice presidents, and heads of various departments and branches 6
II. Implementation of Corporate Governance 21
III. Certifying CPA’s audit fees 83
IV. Information of CPA replacement 84
V. Any of the Company’s Chairman, President, or any manager involved in financial or accounting affairs being employed by the accounting firm or any of its affiliated company within the most recent year 86
VI. Details of shares transferred or pledged by directors, supervisors, managers, and shareholders with more than 10% ownership interest in the last year and up to the publication date of the annual report 86
VII. Information about the top-ten shareholders who are related parties, spouses or relatives within the second degree of kinship as defined in the Financial Accounting Standards No. 6 86
VIII. Investments held by the Company, the Company’s directors, supervisors, managers, and enterprises directly or indirectly controlled by the Company, and the aggregate shareholding of the parties above 86

Three. Capital Overview 88

I. Capital and outstanding shares 88
II. Corporate bonds 93
III. Preferred shares 95
IV. Depository receipts 95
V. Employee warrants 95
VI. New issuance of employee restricted shares 95
VII. Mergers and acquisitions (including mergers, acquisitions and divisions) 95
VIII. Progress on the planned use of capital 95

Four. Operational Highlights 96

I. Business activities 96
II. Market and sales overview 108
III. Employee size, average years of service, average age, and academic background in the last 2 years up until the publication date of the annual report 115
IV. Contribution to environmental protection 115
V. Labor-management relations 115
VI. Information security management 118
VII. Important Contracts: 120

Five. Review and Analysis of Financial Status and Financial Performance, and Risk Management 121

I. Financial Status 121
II. Financial Performance 122
III. Cash Flow 122
IV. Material capital expenditures in the last year and impacts on the financial position

and business performance 123

V. Investment policy for the most recent year, the main reasons for profit or loss, the improvement plan and the investment plan for the coming year 123
VI. Evaluation shall be performed on risk management issues in the last year and up to the publication date of the annual report 123
VII. Other material issues 128

Six. Special Matters to be Included 129

I. Information of affiliated companies 129
II. Private placement of marketable securities in the most recent year and the current year up till the publication date of this annual report 130
III. Other supplementary information 131
IV. Any matters stipulated in Subparagraph 2, Paragraph 2, Article 36 of the Securities and Exchange Act that occurred in the most recent year and up to the date of publication of the annual report which materially affected shareholders' equity or the price of the Company's securities. 131

One. Report to Shareholders

Business Report

Ladies and gentlemen:

The 2025 operation results and overview of the 2026 business plan of Chant Sincere Co., Ltd. are reported as follows:

I. 2025 Operation Results

Business Plan Implementation Results:

The consolidated revenue in 2025 was NT$1,364,041 thousand, a decrease of 3% over that in 2024; the net profit after tax was NT$162,529 thousand, a decrease of 25% over that in 2024. the after tax earnings per share was NT$2.00.

Unit: NT$ thousand

Item	2025	2024	Growth Rate (%)
Net operating revenue	1,364,041	1,406,550	-3%
Gross profit	544,463	586,442	-7%
Operating profit	166,710	157,619	6%
Non-sales and expenditure	45,388	113,882	-60%
Net income before tax	212,098	271,501	-22%
Profit after tax	162,529	217,894	-25%
Earnings per share (NT$)	2.00	2.65	-25%

Budget implementation: The Company has not announced financial forecasts.
Revenues, expenses and profitability analysis:

Unit: NT$ thousand

Item		2025	2024
Net cash inflow from operating activities		296,944	245,039
Net cash inflow (outflow) from investment activities		(224,285)	(411,594)
Net cash inflow (outflow) from financing activities		(224,734)	(146,950)
Return on assets (%)		4.28	5.80
Return on equity (%)		6.17	8.43
As a percentage of paid-in capital	Operating profit	20.27	19.17
	Net profit before tax	25.79	33.01
Net profit margin (%)		11.92	15.49

The net cash inflow from operating activities for 2025 was NT$296,944 thousand, an increase of NT$51,905 thousand from 2024, primarily due to a rise in accounts payable

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and a decrease in income tax payments during the year. The net cash outflow from investment activities was NT$224,285 thousand, primarily due to the acquisition of financial assets measured at fair value through other comprehensive income amounting to NT$305,143 thousand. The net cash outflow from financing activities was NT$224,734 thousand, mainly due to the distribution of cash dividends of NT$131,577 thousand. All other profitability indicators decreased from 2024 levels, primarily due to a decline in revenue and reduced non-operating income in 2025.

Research and Development Overview:

(1) Research and development expenses in the last three years:

Unit: NT$ thousand

Item	2025	2024	2023
Research and development expenses	67,249	56,528	52,349
Net operating revenue	1,364,041	1,406,550	1,375,343
% of operating income	4.93	4.02	3.81

(2) Short-term plan:

A. Actively improve R&D technologies, including Connector, Cable, Adapter, Dongle and Reader.
B. Research and develop high-speed and high-frequency transmission related connector products.
C. Research and develop waterproof connectors (USB series, M12, FAKRA, Mini FAKA and HMTD-N)
D. Research and develop servers, switches, storage devices and various industrial connectors (Mini SAS, Slim SAS, OSFP, PCIE, U.2, SFPDD, QSFP DD and HS BTB).
E. Research and develop various automotive connectors (USB series, Type-C, FAKRA, HSD, MINI FAKRA, HMTD-N (automotive ethernet) and power connectors).

(3) Long-term plan:

A. A. Products: The four major axes of ADAS, Cloud Center, AI Robotics and IPC.
B. Technology:

(a) Improve structural design and high-frequency simulation capabilities.
(b) Purchase additional reliability equipment to strengthen verification capabilities.
(c) Continuously improve automation equipment.
(d) Product automatic detection capability.

II. 2026 Business Plan Overview and Prospect

Operating Guidelines

(1) Over the past decade, the Company has gradually transitioned from a manufacturer of connectors and wire harnesses for the highly competitive consumer market into a key player in niche markets, including Advanced Driver Assistance Systems (ADAS), high-speed network communications, industrial computers, smart mobility, and high-speed transmission. The Company continues to deepen its expertise and is committed to becoming a strategic partner for international automotive brands, smart mobility devices, and high-speed transmission equipment.
(2) We actively enhance the technical capabilities of the R&D team, and expand the application of automated production equipment and smart factory management

systems to improve production management efficiency, quality stability and customer satisfaction, and continuously enhance the Company's core values and competitive advantages.

(3) We believe that talents are the Company’s most important and precious assets, and therefore spare no effort in nurturing and training professionals in various fields, especially the advance deployment of high-speed and high-frequency talents, advanced product design talents, automated machine development talents, production and supply chain management talents, quality system management talents, sales teams for European and US markets, information system development talents, and management-related talents

Sales Volume Forecast and the Basis

The Company has not announced financial forecasts, so it does not explain the expected sales figures and their basis.

Key Production/Sales Policies

(1) Production: We continuously upgrade our automated production to enhance product competitiveness and establish and develop excellent supply chain partners to reach a consensus on cooperation with us on environmental awareness, customer satisfaction and quality. Our production is mainly order-based. Safety stocks are kept under control at all times to improve operating efficiency.

(2) Sales: In the past, our business model was mainly sales to Taiwanese OEMs and distributors in various countries. In recent years, our sales have expanded to European tier 1 manufacturers and US manufacturers. Notably, in the Advanced Driver Assistance Systems (ADAS) sector, the significant increase in the number of customers has further enhanced Chant Sincere’s visibility and brand recognition within the global automotive components supply chain.

III. Strategies of Future Development

Industry:

(a) Over the next 10 years, the automotive market will continue to see an increase in the penetration of intelligent driving and Advanced Driver Assistance Systems (ADAS). Chant Sincere began its forward-looking deployment in this sector a decade ago, actively developing a comprehensive range of related connectors and wire harness products. Our ultimate goal is to become a strategic partner for leading European and U.S. automakers. Moving forward, we will align with our established plans and steadily progress toward our strategic objectives.

(b) Building on the foundation of intelligent driving, high-speed network communication transmission equipment and Industrial IoT (IIoT) computing devices are essential core hardware. At the same time, smart mobility is emerging as another key application field, encompassing autonomous guided vehicles (AGVs), drones, and collaborative robots (Cobots), all of which represent cutting-edge technologies shaping the future of mobility.

(c) Whether it is high-speed, high-volume data processing and transmission required for the former or the reliance on multiple sensors enabling precise positioning and intelligent mobility for the latter, these industries heavily depend on signal transmission connectors and wire harness products. Chant Sincere is actively embracing the next golden decade, continuing to deepen its expertise and expand its market presence.

R&D:

(a) Talent Development (High-Frequency Simulation Talents, Mechanical and Electronic Design Talents, Thermal Solutions Talents, Mold Development and Design Talents, Automated Machinery Development and Integration Talents).

(b) Improve structural design and high-frequency simulation capabilities.

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(d) Continuously improve automation equipment.
(e) Product automatic detection capability.

Production: Focus on introducing production automation and successively purchase high-end testing equipment for self-verification of high-speed and high-frequency products, and gradually move the main production back to Taiwan.

IV. Impact of external competition environment, legal environment and overall business environment

Looking back on 2025, the global industrial landscape continued to evolve in a highly uncertain environment, and it marked a pivotal year for generative AI as it rapidly transitioned from concept to large-scale implementation. With the continuous expansion of high-performance computing (HPC) and AI infrastructure, demand is growing significantly for next-generation accelerated computing platforms and the construction of cloud data centers. Generative AI has become fully integrated into diverse applications such as corporate operations, manufacturing process optimization, product research and development, education and training, and healthcare. Organizations across industries are continuing to invest heavily in AI technology adoption and digital transformation to enhance operational efficiency, lower costs, and generate new value, fueling steady growth in demand for advanced connectivity technologies and system integration.
In terms of global trade and geopolitics, the trend of international supply chain restructuring continued to deepen in 2025. Due to adjustments in the trade policies of major economies, shifts in regional economic cooperation models, and concerns about industrial security, the Asian supply chain structure is undergoing significant shifts and decentralization. Demand in some markets is showing signs of correction. However, investment momentum remains relatively strong in Southeast Asia and other emerging manufacturing hubs, boosting regional manufacturing, exports, and infrastructure demand. Overall, the global economy continues to be affected by the interplay of inflation, interest rate policies, and economic cycles. The Company is responding cautiously to market volatility and strengthening its operational resilience and supply chain flexibility.
In 2025, the Company continued to strengthen its product technology development and expand into new application areas, with a clear focus on mid- to long-term growth opportunities. The Company focuses on high-tech, high value-added fields such as automotive, industrial computers (IPC), networking, fiber optics, and waterproof connectors (wires). Moreover, the Company has successfully entered the international automotive supply chain and obtained multiple VDA 6.3 certifications, strengthening its market position in automotive signal and power transmission connectors and wire harnesses. As the proportion of shipments for industrial computers and networking products gradually increases, the Company's overall product mix is shifting towards higher-margin, higher-technology products, effectively improving profitability and enhancing long-term competitiveness.

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In terms of legal compliance and corporate governance, the Company constantly strengthened its internal control and risk management mechanisms in 2025. The Company has established comprehensive compliance procedures and operating systems to ensure all business operations adhere to relevant laws, regulations, and industry standards. At the same time, the Company also actively promotes corporate governance and sustainable development policies, encompassing operational transparency, environmental protection, employee well-being, and stakeholder engagement. Through a robust governance framework and long-term development strategy, the Company is committed to creating sustained and stable long-term value for shareholders and achieving sustainable business operations.

Responsible person: Lien-Hsi Wu

Managerial Officer: Lien-Hsi Wu

Accounting Supervisor: Mei-Hui Liao

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Two. Corporate Governance Report

I. Background information of directors, supervisors, managers, and heads of various departments and branches (I) Directors

Position	Nationality or place of registration	Name	Gender Age	Date of Election (Take Office)	Term	Date first elected	Shareholding when elected		Current shareholding		Shareholding of spouse and underage children		Shares held by proxy		Main career (academic) achievements	Concurrent duties in the Company and other companies	Spouse or relatives of the second degree or closer acting as manager, director, or supervisor			Remarks
							Shares	Shareholding percentage	Shares	Shareholding percentage	Shares	Shareholding percentage	Shares	Shareholding percentage			Position	Name	Relation
Chairman	The Republic of China	Lien-Hsi Wu	Male 61-70 years old	2023.06.14	3	1999.01.12	4,005,942	5.01%	4,381,577	5.33%	1,312,682	1.60%	0	0%	Education: Mechanical Engineering Department, Jui-Fang Industrial High School Experience: President, Chant Sincere Co., Ltd.	Chairman and President, Chant Sincere Co., Ltd. Director, Asmoo Investment Co., Ltd. A&H ELECTRONICS COMPANY(BV)LTD. Directors Director, Chant Sincere Technology Co., Ltd. Director of Kunshan Chant Sincere Electronics Ltd. Director, Dongguan Quanrong Electronics Co., Ltd.	Vice Chairman	Ting-Ting Shih	Aunt	Note 2
Directors	The Republic of China	Ting-Ting Shih	Female 61-70 years old	2023.06.14	3	2017.06.14	1,368,054	1.71%	1,368,054	1.66%	4,115,912	5.01%	0	0%	Education: Lukang Junior High School Experience: Special Assistant to the Chairman, Chant Sincere Co., Ltd.	Vice Chairman, Chant Sincere Co., Ltd. Chairman, Hsianghehsing Investment Co., Ltd. Director, CHANT SINCERE (THAILAND) CO.,LTD.	Chairman	Lien-Hsi Wu	Aunt
Directors	The Republic of China	Wu-Hsiang Chen	Male 61-70 years old	2023.06.14	3	2008.06.13	1,173,194	1.47%	1,173,194	1.43%	483,648	0.59%	0	0%	Education: Union Vocational High School Experience: President, Yuheng Informaation Co., Ltd.	Vice President, Chant Sincere Co. Ltd. Director, Dongguan Quanrong Electronics Co., Ltd. Director, CHANT SINCERE (THAILAND) CO.,LTD.	None	None	None
Directors	The Republic of China	Chia-Hsiang Wu	Male 41-50 years old	2023.06.14	3	2012.06.12	1,587,041	1.98%	1,681,380	2.04%	0	0	0	0%	Education: Master of Management, St. Leo University, Australia Experience: Special Assistant to the Chairman, Chant Sincere Co., Ltd.	Chairman, David Electronics Company Ltd. Director, Hsianghehsing Investment Co., Ltd.	Vice Chairman	Ting-Ting Shih	Mother and son
Directors	The Republic of China	Chun-Wei Wu	Male 31-40 years old	2023.06.14	3	2021.07.28	2,317,774	2.90%	2,317,774	2.82%	0	0	0	0%	Education: Department of Mechanical Engineering, Datong University Experience: Manager, Marketing Department, Chant Sincere Co., Ltd.	Senior Manager, Marketing Department, Chant Sincere Co., Ltd. Director, Minchang Investment Co., Ltd. Director, CHANT SINCERE (THAILAND) CO.,LTD.	Chairman	Lien-Hsi Wu	Father and son

March 30, 2026

Position	Nationality or place of registration	Name	Gender Age	Date of Election (Take Office)	Term	Date first elected	Shareholding when elected		Current shareholding		Shareholding of spouse and underage children		Shares held by proxy		Main career (academic) achievements	Concurrent duties in the Company and other companies	Spouse or relatives of the second degree or closer acting as manager, director, or supervisor
							Shares	Shareholding percentage	Shares	Shareholding percentage	Shares	Shareholding percentage	Shares	Shareholding percentage			Position	Name	Relation
Independent director	The Republic of China	Ming-Lei Chang	Female 51-60 years old	2023.06.14	3	2014.06.20	0	0.00%	0	0.00%	0	0.00%	0	0%	Education: Ph.D. in Accounting, National Taiwan University Experience: Associate Professor, Accounting Group, School of Management, Yuan Zi University Dean of the College of Business, Chung Yuan Christian University	Director, Taiwan Cooperative Bank Independent Director, Bausen Inc Independent Director, Yulon Motor Co., Ltd	None	None	None
Independent director	ROC	Yin-Tien Wang	Male 61-70 years old	2023.06.14	3	2020.06.16	0	0.00%	0	0.00%	0	0.00%	0	0%	Education: PhD in Mechanical Engineering, University of Pennsylvania, USA USA Experience: Professor, Department of Artificial Intelligence/Director, Smart Manufacturing Research Center, , Tamkang University Professor, Department of Mechanical and Mechatronic Engineering, Tamkang University	Independent Director, Innodisk	None	None	None
Independent director	The Republic of China	Chang-Lin Chan	Male 51-60 years old	2023.06.14	3	2005.06.16 (Note 1)	0	0.00%	0	0.00%	0	0.00%	0	0%	Education: Doctor of Business Administration, Nation University of USA Experience: President, AIM (Samoa) Co., Ltd. Taiwan Branch Vice President, Guedeng Precision Industrial Co., Ltd.	President, Advanced Innovation Management Co., Ltd. President	None	None	None
Independent director	The Republic of China	Chen-Chien Hou	Male 61-70 years old	2023.06.14	3	2023.06.14	0	0.00%	0	0.00%	0	0.00%	0	0%	Education: PhD, Griffith University, Australia Experience: Professor, Department of Mechanical and Mechatronic Engineering, Tamkang University Patent Examination Commissioner, Intellectual Property Office, MOEA Lecturer, Department of Engineering, Murdoch University, Australia System Engineer, IBM Taiwan	Distinguished Professor, Department of Electrical Engineering, National Taiwan Normal University	None	None	None

Note 1: Mr. Chang-Lin Chan was first elected as the Company's independent director for a term from June 16, 2005 to June 15, 2008.
Note 2: Reasons, rationality, necessity and response measures for the chairman of the company to serve as the president:

The Chairman of the Company is also the President, because the Chairman is very familiar with the industry the company is in; in order to improve operational efficiency, decision making and execution to create a maximum value for the enterprise, there is still a need for the Chairman to concurrently serve as the President under the current circumstances. However, in order to implement corporate governance, the current response measures are as follows:

The Company has actively promoted the training system for key personnel.
The current independent directors have expertise in financial accounting, commercial and legal affairs and corporate business, and can effectively perform their supervisory functions.
Independent directors can fully discuss in the audit committee meeting and remuneration committee meeting and provide suggestions for the board of directors' reference.
Increase the number of independent directors to enhance the capacity of supervision, and more than half of the directors will not be concurrent employees or managers.

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8

Major Shareholders of corporate shareholders: None.
Disclosure of information on the professional qualifications of directors and the independence of independent directors:

Name	Professional qualifications and experience	Independence status	Number of independent director positions of other public companies
Chairman Lien-Hsi Wu	With more than five years of experience required for the Company's business, one of the founders of the Company, and currently serving as the Chairman and President of the Company.	N/A	0
Vice Chairman Ting-TIng Shih	With more than five years of experience required for the Company's business, one of the founders of the Company, and currently serving as the Vice Chairman of the Company.		0
Directors Wu-Hsiung Chen	With more than five years of experience required for the Company's business, one of the founders of the Company, and currently serving as the Vice President of the Company's Operations Research Department.		0
Directors Chia-Hsiang Wu	With more than five years of experience required for the Company's business, and currently serving as the Chairman of David Electronics Company Ltd.		0
Directors Chun-Wei Wu	With more than five years of experience required for the Company's business, and currently serving as the Senior Manager of the Company's Marketing Department.		0
Independent director Ming-Lei Chang	With more than five years of experience in finance or accounting and a CPA license. Current position Dean of the College of Business, Chung Yuan Christian University Experience: Associate Professor, Accounting Group, School of Management, Yuan Ze University	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 hold more than 1% of the total issued shares of the Company in his/her or his/her spouse's or minor children's or another person's name, or is not a top ten individual shareholder.
4. Not a manager in paragraph 1 or the spouse, second-tier relative or third-tier relative of the persons listed in paragraphs 2 and 3.
5. Not a director, supervisor or employee of a corporate shareholder which directly holds more than 5% of the total issued shares of the Company, or a top five shareholder, or which appoints him/her as its representative to serve as the Company's director or supervisor in	2
Independent director Yin-Tien Wang	With more than five years of experience required for the Company's business. Current position Dean of the Department of Artificial Intelligence and Professor of the Department of Mechanical and Electrical Engineering, Tamkang University Experience:		1

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	Professor and Dean, Department of Mechanical and Mechatronic Engineering, Tamkang University	accordance with Paragraph 1 or 2 of Article 27 of the Company Act.
Independent director Chang-Lin Chan	With more than five years of experience required for the Company's business. Current position President, Advanced Innovation Management Co., Ltd. Experience: President, ADVANCED INNOVATION MANAGEMENT CO., LTD. Taiwan Branch Vice President, Guedeng Precision Industrial Co., Ltd.	6. Not a director, supervisor or employee of another company which has a seat on the board of directors, or more than half of its shares with voting rights are controlled by the same owner of the Company.
7. Not a director, supervisor or employee of another company or institution who is the same person or spouse as the Chairman, President or an equivalent position of the Company
8. Not a director, supervisor or manager of another company or institution which has financial or business dealings with the Company, or is a shareholder holding more than 5% of the shares of the Company
9. Not a professional, sole proprietor, partner, business owner or partner, or a director, supervisor, manager or the spouse of the above of a company or institution which provides audit services to the Company or its affiliated enterprises, or the cumulative remuneration amount of which in the past two years exceeds NT$500,000 for business, legal affairs, finance or accounting related services.
10. Not a spouse or relative of the second degree or closer to any other directors.
11. Not a government agency, a legal person or their representative as stipulated in Article 27 of the Company Act.	0
Independent director Chen-Chien Hsu	With more than five years of experience required for the Company's business. Current position Distinguished Professor, Department of Electrical Engineering, National Taiwan Normal University Experience: Associate Professor, Department of Electrical Engineering, Tamkang University Patent Examination Commissioner, Intellectual Property Office, MOEA Lecturer, Department of Engineering, Murdoch University, Australia System Engineer, IBM Taiwan		0

Note 1: None of the directors have any of the circumstances in Article 30 of the Company Act.

Director diversity policy and independence:

(1) Board diversity:

In accordance with Article 20 of the "Code of Practice for Corporate Governance" of the Company, diversity shall be considered for the members of the board of directors, who shall have the knowledge, skills and literacy necessary for the performance of their duties. To achieve corporate governance goals, the overall board diversity policy is as follows:

A. Basic criteria and values: gender, age, nationality and culture, etc.
B. Professional knowledge and skills: Operation judgment, accounting and financial analysis, business management, crisis management, industry knowledge, international market outlook, leadership, and decision-making capability.

Specific management objectives and achievement of the diversity policy:

Objective management	Achievement status
Any gender of director reaching 1/3 of the total number of directors	Not achieved (Note 1)
Diversified professional knowledge and skills	Achieved

Diversification item	Nationality	Gender	Employer identity	Age				Professional background			Professional knowledge and skills:
				31 to 40 years old	41 to 50 years old	51 to 60 years old	61 to 70 years old	Accounting	Finance	Industry	Technology	The ability to make judgments about operations.	Institutional work	Business management ability.	Crisis management ability.	Incidentality ability.	Leadership ability.
Directors	Lien-H si Wu	The Republic of China	M	V				V			V	V	V		V	V	V	V
	Ting-T Ing Shih		F					V	V	V	V		V	V	V	V	V	V
	Wu-Hs iung Chen		M	V				V			V	V	V		V	V	V	V
	Chia-H siang Wu		M			V					V	V	V		V	V	V	V
	Chun-Wei Wu		M	V	V						V	V	V		V	V	V	V
Independent director	Ming-Lei Chang		F				V		V	V			V	V	V	V		V
	Yin-Ti en Wang		M					V			V	V	V		V	V	V	V
	Chang-Lin Chan	M				V				V	V	V		V	V	V	V
	Chen-Chien Hsu		M					V			V	V	V		V	V	V	V

Note 1: The reason for the number of directors of any gender not reaching $\frac{1}{3}$ of the total number of directors and the measures to be taken to enhance the diversity of the directors: As the Company has no plan to elect new directors in the near future, it is expected to elect female directors to achieve the goal of the Board of Directors' diversity when the directors are re-elected in 2029.

(2) Independence of the board of directors

Among the 9 directors of the Company, 4 independent directors account for approximately $44.4\%$ and three of them have served less than 3 consecutive terms, and 3 directors with employee status, account for approximately $33.3\%$ . As of the end of 2024, all independent directors met the relevant standards for independent directors, and more than half of the directors did not have a relationship of spouse and second-degree kinship relationship.

(II) Information of the President, Vice Presidents, senior managers, and heads of departments and branches
March 30, 2026

Position	Nationality	Name	Gender	Date of Election Date	Current shareholding		Shareholding of spouse and underage children		Shares held by proxy		Main career (academic) achievements	Concurrent positions in other companies	Spouse or relatives of the second degree or closer acting as managers			Remarks
					Shares	Shareholding percentage	Shares	Shareholding percentage	Shares	Shareholding percentage			Position	Name	Relation
President	The Republic of China	Lien-Hsi Wu	Male	1985.10.15	4,381,577	5.33%	1,312,682	1.60%	0	0%	Education: Mechanical Engineering Department, Jui-Fang Industrial High School Experience: President, Chant Sincere Co., Ltd.	Director, Axmos Investment Co., Ltd. A&H ELECTRONICS COMPANY/BVULTD. Directors Director, Chant Sincere Technology Co., Ltd. Director of Kunshan Chant Sincere Electronics Ltd. Director, Dongguan Quanzong Electronics Co., Ltd.	None	None	None	Note 2
Vice President	The Republic of China	Wu-Hsiung Chen	Male	1992.08.01	1,173,194	1.43%	483,648	0.59%	0	0%	Education: Union Vocational High School Experience: President, Yuheng Information Co., Ltd.	Director, Dongguan Quanzong Electronics Co., Ltd. Director, CHANT SINCERE THAILAND CO. LTD.	None	None	None
Vice President	The Republic of China	Dao-Ming Chen	Male	2019.01.01	0	0.00%	0	0.00%	0	0%	Education: Electronics Department of China Technical College Experience: Quality Assurance Manager and Business Manager, Chant Sincere Co., Ltd.	None	None	None	None
Senior Administrative Manager	The Republic of China	Wei-Li Hsu	Female	2022.04.18	106,000	0.13%	0	0.00%	0	0	Education: Institute of Accounting, Ming Chuan University Experience: Audit Manager, Chant Sincere Co. Ltd. Deputy Group Leader, Deloitte Taiwan.	None	None	None	None
Finance Department Manager	The Republic of China	Chung-Ying Su	Female	2009.05.01	26,447	0.03%	37	0.00%	0	0.00%	Education: National Taipei College of Business Experience: Group leader of Tsuien Manufacturing Inc.	None	None	None	None
Manager, Accounting Department	The Republic of China	Mei-Hui Liao	Female	2009.03.09	0	0.00%	0	0.00%	0	0.00%	Education: Applied Business Department, National Taipei College of Business Experience: Accountant of Li Yan-Juan Accounting Firm	None	None	None	None

Note 1: The number of shares held is as of March 30, 2026, and other information is as of the date of publication.
Note 2: Reasons, rationality, necessity and response measures for the Chairman of the Company to serve as the President:
The Chairman of the Company is also the President, because the Chairman is very familiar with the industry the company is in; in order to
improve operational efficiency, decision making and execution to create a maximum value for the enterprise, there is still a need for
the Chairman to concurrently serve as the President under the current circumstances. However, in order to implement corporate
governance, the current response measures are as follows:
1. The Company has actively promoted the training system for key personnel.
2. The current independent directors have expertise in financial accounting, commercial and legal affairs and corporate business, and can

effectively perform their supervisory functions.

Independent directors can fully discuss in the audit committee meeting and remuneration committee meeting and provide suggestions for the board of directors' reference.
Increase the number of independent directors to enhance the capacity of supervision, and more than half of the directors will not be concurrent employees or managers.

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(III) Compensation paid to directors, supervisors, the President, and vice presidents in the last year
1. Compensation of general directors and independent directors (a summary with the names and the corresponding tiers)
December 31, 2025 Unit: NT$ thousand

Position	Name (Note 1)	Directors' remuneration	Sum of A, B, C, and D and as a percentage of net income after tax (Note 10)	Compensation received as an employee	Sum of A, B, C, D, E, F, and G as a percentage of net income after tax (Note 10)	Remuneration acquired from reinvestments besides subsidiaries (Note 11)
Compensations (A) (Note 2)	Pensions (B)	Remunerations for Director (C) (Note 3)	Fees for services rendered (D) (Note 4)	Salaries, bonuses, special allowances etc. (E) (Note 5)	Pensions (F)	Employee remuneration (G) (Note 6)
The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company
General directors	Lien-H si Wu	0	0	0	0	1,077
Ting-Ti ng Shih
Wu-Hsi ung Chen
Chia-H siang Wu
Chun-Wei Wu
Independent director	Ming-L ei Chang	0	0	0	0	1,016
Yin-Tie n Wang

	Chang-Lin Chan
	Chen-Chien Hsu
Note 1: In addition to those disclosed in the above Table, the remuneration received by the directors of the Company for providing services in the most recent year (such as serving as a non-employee consultant for the parent company/all companies included in the financial report/invested enterprises, etc.): None. Note 2: Please describe the policy, system, standards and structure of remuneration payment to independent directors, and the correlation with the amount of remuneration based on factors such as responsibilities, risks, and time invested, etc.: The remuneration of independent directors of the Company is allocated in accordance with the relevant provisions of Article 20-1 of the Company's Articles of Association, and the remuneration ratio is calculated by the Remuneration Committee after considering the positions held by each director (general director or independent director), whether serving as a functional committee member, attendance rate at meetings and important contributions, and then submitted to the board meeting for resolution.

Remuneration Tier Table

Remuneration ranges paid to each director of the Company	Director's name
	Total amount of the first four remunerations (A+B+C+D)		Total amount of the first seven remunerations (A+B+C+D+E+F+G)
	The Company (Note 8)	All companies included in the financial statements (Note 9)	The Company (Note 8)	All companies included in the financial statements (Note 9)
Below NT$ 1,000,000	Independent director: Ming-Lei Chang, Yin-Tien Wang, Chang-Lin Chan, Chen-Chien Hsu Non-independent directors: Lien-Hsi Wu, Ting-Ting Shih, Wu-Hsiung Chen Chia-Hsiang Wu, Chun-Wei Wu	Independent director: Ming-Lei Chang, Yin-Tien Wang, Chang-Lin Chan, Chen-Chien Hsu Non-independent directors: Lien-Hsi Wu, Ting-Ting Shih, Wu-Hsiung Chen Chia-Hsiang Wu, Chun-Wei Wu	Independent director: Ming-Lei Chang, Yin-Tien Wang, Chang-Lin Chan, Chen-Chien Hsu Non-independent: Chia-Hsiang Wu	Independent director: Ming-Lei Chang, Yin-Tien Wang, Chang-Lin Chan, Chen-Chien Hsu
NT$1,000,000 (inclusive) - NT$2,000,000 (non-inclusive)			Non-independent director: Ting-TIng Shih	Non-independent director: Ting-Ting Shih, Chia-Hsiang Wu
NT$2,000,000 (inclusive) - NT$3,500,000 (non-inclusive)			Non-independent director: Chun-Wei Wu	Non-independent director: Chun-Wei Wu
NT$3,500,000 (inclusive) ~NT$5,000,000 (non-inclusive)			Non-independent director: Wu-Hsiung Chen	Non-independent director: Wu-Hsiung Chen
NT$5,000,000 (inclusive) ~ NT$10,000,000 (non-inclusive)			Non-independent director: Lien-Hsi Wu	Non-independent director: Lien-Hsi Wu
NT$10,000,000 (inclusive) --NT$15,000,000 (non-inclusive)
NT$15,000,000 (inclusive) ~ NT$30,000,000 (non-inclusive)
NT$30,000,000 (inclusive) - NT$50,000,000 (non-inclusive)
NT$50,000,000 (inclusive) - NT$100,000,000 (non-inclusive)
NT$ 100,000,000 and above
Total	9	9	9	9

Note 1: Shareholders' names should be presented separately (for corporate shareholders, the name of the corporate shareholder and its representative should be presented separately)
Note 2: Refers to the director's remuneration in the most recent year (including director salary, position bonus, severance pay, various bonuses, incentives, etc.).

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Note 3: Fill in the amount of directors' remuneration proposed to be distributed via the resolution of the board meeting on March 04, 2026.

Note 4: Refers to the relevant business execution expenses of the directors in the most recent year (including travel expenses, special expenses, various allowances, dormitory, car and other in-kind provisions). When providing houses, cars and other means of transportation or exclusive personal expenses, the nature and cost of the provided assets, actual or fair market value rents, fuel and other payments should be disclosed. In addition, if there is a driver, please note the relevant remuneration paid by the Company to the driver, but it is not included in the remuneration.

Note 5: Refers to the salary, position bonus, severance pay, various bonuses, incentives, travel expenses, special expenses, various subsidies, dormitory, car and other in-kind provisions received by directors and employees in the most recent year (including concurrently serving as the president, vice presidents, other managers and employees). When providing houses, cars and other means of transportation or exclusive personal expenses, the nature and cost of the provided assets, actual or fair market value rents, fuel and other payments should be disclosed. In addition, if there is a driver, please note the relevant remuneration paid by the Company to the driver, but it is not included in the remuneration. Salary expenses recognized in accordance with IFRS 2 "Share-based Payments", including employee stock option certificates, new shares with restricted employee rights, and participation in subscription of shares from cash capital increase should also be included in the remuneration.

Note 6: Refers to the disclosure of the amount of employees' remuneration approved by the board meeting in the most recent year for those who have received employees' remuneration (including stock and cash) as concurrent directors and employees (including concurrently serving as the president, vice presidents, other managers and employees) in the most recent year. If it cannot be estimated, the distribution amount of this year shall be determined by the actual distribution ratio of last year.

Note 7: Disclose the total amount of remuneration paid to the directors by all companies (including the Company) in the consolidated report.

Note 8: For the total amount of remuneration paid by the Company to each director, disclose the name of the director in the corresponding tier.

Note 9: Disclose the total amount of remuneration paid to the Company's directors by all companies (including the Company) in the consolidated report; disclose the name of the director in the corresponding tier.

Note 10: The net profit after tax refers to the net profit after tax of the individual or entity financial report of the most recent year. The net profit after tax of the 2025 individual financial report is NT$162,361 thousand.

Note 11: a. This column should clearly indicate the amount of remuneration received by the director of the Company from reinvestment businesses other than the subsidiaries or from the parent company (if none, please fill in "None").

b. If the director of the Company receives remuneration from reinvestment businesses other than the subsidiaries or from the parent company, the remuneration received by the company director from reinvestment businesses other than the subsidiaries or from the parent company shall be included in column I of the remuneration tier table, and the column name be changed to "Parent Company and All Reinvestment Businesses".

c. Remuneration refers to the compensation, remuneration (including the remuneration of employees, directors and supervisors) and business expenses received by the directors of the Company as directors, supervisors or managers of the subsidiaries or parent company.

Supervisor's remuneration: Not applicable; the Company established an audit committee on June 16, 2020.
Remuneration of the president and vice presidents (a summary with the names and the corresponding tiers)

Position	Name (Note 1)	Salary (A) (Note 2)		Pensions (B)		Bonuses and Special Disbursements (C) (Note 3)		Remuneration for employees (D) (Note 4)				Sum of A, B, C, and D and as a percentage of net income after tax (%) (Note 8)		Any remuneration acquired from reinvestments besides subsidiaries (Note 9)
		The Company	All companies included in the financial statements (Note 5)	The Company	All companies included in the financial statements (Note 5)	The Company	All companies included in the financial statements (Note 5)	The Company		All companies included in the financial statements (Note 5)		The Company	All companies included in the financial statements (Note 5)
								Amount paid in cash	Amount paid in shares	Amount paid in cash	Amount paid in shares
President	Lien-Hsi Wu	5,450	5,450	374	374	5,455	5,455	1,116	0	1,116	0	12,395	12,395	None
Vice President	Wu-Hsiung Chen											7.63%	7.63%
Vice President	Dao-Ming Chen

Note: Regardless of the title, those whose positions are equivalent to the president or vice president (eg, CEO chief executive, director, etc.) should be disclosed.

Remuneration Tier Table

Remuneration ranges paid to each General Manager and Deputy General Manager of the Company	Names of President and vice presidents
	The Company (Note 6)	All companies included in the financial statements (Note 7) E
Below NT$ 1,000,000
NT$1,000,000 (inclusive) - NT$2,000,000 (non-inclusive)
NT$2,000,000 (inclusive) - NT$3,500,000 (non-inclusive)
NT$3,500,000 (inclusive) ~NT$5,000,000 (non-inclusive)	Wu-Hsiung Chen	Wu-Hsiung Chen
NT$5,000,000 (inclusive) ~ NT$10,000,000 (non-inclusive)	Dao-Ming Chen	Dao-Ming Chen
NT$10,000,000 (inclusive) --NT$15,000,000 (non-inclusive)	Lien-Hsi Wu	Lien-Hsi Wu
NT$15,000,000 (inclusive) ~ NT$30,000,000 (non-inclusive)
NT$30,000,000 (inclusive) - NT$50,000,000 (non-inclusive)
NT$50,000,000 (inclusive) - NT$100,000,000 (non-inclusive)
NT$ 100,000,000 and above
Total	3	3

Note 1: The names of the president and vice presidents should be listed separately, and the payment amounts should be disclosed in an aggregated manner. If the director concurrently serves as the president or vice president, the director's remuneration and remuneration tier table in this form and the table above should be filled in.
Note 2: Fill in the salary, position bonus and severance pay of the president and vice presidents in the most recent year.
Note 3: Fill in the salary, position bonus, various bonuses, incentives, travel expenses, special expenses, various subsidies, dormitory, car and other in-kind provisions received by the president and vice presidents. When providing houses, cars and other means of transportation or exclusive personal expenses, the nature and cost of the provided assets, actual or fair market value rents, fuel and other payments should be disclosed. In addition, if there is a driver, please note the relevant remuneration paid by the Company to the driver, but it is not included in the remuneration. Salary expenses recognized in accordance with IFRS 2 "Share-based Payments", including employee stock option certificates, new shares with restricted employee rights, and participation in subscription of shares from cash capital increase should also be included in the remuneration.
Note 4: Fill in the amount of employee remuneration (including stock and cash) distributed to the president and vice presidents as approved by the board of directors in the most recent year. If it cannot be estimated, the proposed distribution amount of this year shall be determined by the actual distribution ratio.
Note 5: Disclose the total amount of remuneration paid to the president and vice presidents by all companies (including the Company) in the consolidated report.
Note 6: For the total amount of remuneration paid by the Company to the president and each vice president, disclose the name of the president/vice president in the corresponding tier.
Note 7: Disclose the total amount of remuneration paid to the Company's president and each vice president by all companies (including the Company) in the consolidated report; disclose the name of the director in the corresponding tier.
Note 8: The net profit after tax refers to the net profit after tax of the individual or entity financial report of the most recent year. The net profit after tax of the 2025 individual financial report is NT$162,361 thousand.
Note 9: a. This column should clearly indicate the amount of remuneration received by the president and vice presidents of the Company from reinvestment businesses other than the subsidiaries or from the parent company (if none, please fill in "None").
b. If the president and vice president of the Company receives remuneration from reinvestment businesses other than the subsidiaries or from the parent company, the remuneration received by the president and vice president of the Company from reinvestment businesses other than the subsidiaries or from the parent company shall be included in column E of the remuneration tier table, and the column name be changed to "Parent Company and All Reinvestment Businesses".
c. Remuneration refers to the compensation, remuneration (including the remuneration of employees, directors and supervisors) and business expenses received by the president and vice president of the Company as directors, supervisors or managers of the subsidiaries or parent company.

Employee Remuneration Distributed to Managerial Officers and Distribution Situation
As of December 31, 2025 Unit: NT$ thousand

	Position	Name	Dividend bonus amount (Note 1)	Cash bonus amount (Note 1)	Total	Total as a percentage of net income (%) (Note 2)
Managers	President	Lien-Hsi Wu	0	1,540	1,540	0.95%
	Vice President	Wu-Hsiung Chen
	Vice President	Dao-Ming Chen
	Senior Administrative Manager	Wei-Li Hsu
	Finance Department Manager	Chung-Ying Su
	Accounting manager	Mei-Hui Liao

Note 1: The proposed ratio of distribution amount for this year is calculated based on the actual distribution amount last year.
Note 2: The net profit after tax of the 2025 individual financial report is NT$162,361 thousand.

(IV) Compare and explain the analysis of the total amount of remuneration paid by the Company and all companies in the consolidated financial statements to the Company's directors, supervisors, president and vice presidents in the last two years as a percentage of the net profit after tax of the individual or entity financial report, and explain the remuneration policies standards and packages, procedures for setting remuneration and the relationship with business performance and future risks.

The ratio of total remuneration to net profit after tax
Unit: NT$ thousand

Position	2024 (the Company)		2024 (all companies included in the consolidated statements)
	Total remuneration	Total as a percentage of net income	Total remuneration	Total as a percentage of net income
Directors	3,396	1.56%	3,396	1.56%
GM and VGM	15,318	7.03%	15,318	7.03%

Unit: NT$ thousand

Position	2025(the Company)		2025 (all companies included in the consolidated statements)
	Total remuneration	Total as a percentage of net income	Total remuneration	Total as a percentage of net income
Directors	2,093	1.29%	2,093	1.29%
GM and VGM	12,395	7.63%	12,395	7.63%

The total amount of remuneration to directors, supervisors, general managers and deputy general managers is mainly determined in accordance with their participation in and contribution to the Company's operations, and with reference to domestic and foreign industrial standards.

Remuneration policies, standards and packages, procedures of setting remuneration, and the relationship with business performance and future:

According to Article 20-1 of the Articles of Association of the Company, the Company shall allocate 2% to 15% of the annual pre-tax net profit before the deduction of employees' remuneration and directors' remuneration as employees' remuneration, and no more than 2% as director's remuneration. However, profits must first be taken to offset cumulative losses, if any, which will be submitted to the shareholder's meeting for review.

(1) Directors' remuneration:

According to the Company's "Measures for the Distribution of Directors' Remuneration", the remuneration distribution method is based on the director's position (general/independent director), whether serving as a functional committee member, meeting attendance rate and important contributions, etc., to calculate the remuneration ratio.

(2) Remuneration of the president and vice presidents:

The appointment, removal, and compensation of managers are all handled in accordance with company regulations and approved by the board. The overall compensation portfolio mainly includes salary, bonuses, employee remuneration and benefits. It is calculated based on the manager's comprehensive consideration of the Company's revenue, gross profit margin, net profit margin and project target achievement rate.

The above principles may be adjusted at an appropriate time in response to changes in the overall economy and industry outlook, while taking into account the Company's future development needs, profitability, and operational risks.

II. Implementation of Corporate Governance

(I) Operation of board meeting

A total of 6 meetings were held in 2025, and the directors' attendance records are as follows:

Position	Name	Attendance in Person	Number of proxy attendance	In-person attendance rate (%)
Chairman	Lien-Hsi Wu	6	0	100%
Directors	Ting-TIng Shih	6	0	100%
Directors	Wu-Hsiung Chen	6	0	100%
Directors	Chia-Hsiang Wu	6	0	100%
Directors	Chun-Wei Wu	6	0	100%
Independent director	Ming-Lei Chang	6	0	100%
Independent director	Yin-Tien Wang	6	0	100%
Independent director	Chang-Lin Chan	6	0	100%
Independent director	Chen-Chien Hsu	4	2	67%
Other mandatory disclosures:
I. For board meetings that meet any of the following descriptions, state the date, the session,

the contents of the motions, all independent directors' opinions and how the Company responded to such opinions:

(I) The matters listed in Article 14-3 of the Securities and Exchange Act: Please refer to III, (XI) Important resolutions of shareholders' meetings and board of directors.
(II) Other than the aforementioned matters, matters resolved by the board meeting but with objections or reservations of independent directors with records or statements in writing in place: None.

II. For the recusals of directors due to conflicts of interests, the minutes shall clearly state the director's name, contents of the motion, the reason for not voting and actual voting counts: None.

III. TWSE/TPEX listed companies are required to disclose the cycle, duration, scope, method, and details of board performance self (or peer) evaluations performed, and complete Execution of Board Performance Evaluation.

Evaluation Cycle	Evaluation duration	Evaluation scope	Evaluation method	Evaluation content
Once a year	January 1, 2025 to December 31, 2025	Board of Directors	Internal self-assessment of the board of directors by means of an internal questionnaire is adopted.	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 of directors and continuing study
5. Internal control
		Individual board member	Self-assessment of the board of directors by means of an internal questionnaire is adopted.	1. Understanding of the Company's goals and mission.
2. Understanding director duties and responsibilities.
3. Participation in the Company's operations.
4. Internal relationship maintenance and communication.
5. Expertise of directors and continuing study.
6. Internal control.
		Functional committee	Self-assessment of the board of directors by means of an internal questionnaire is adopted.	1. Participation in the Company's operations.
2. Awareness of the duties of the functional committee
3. Quality of decisions made by the functional committee
4. Makeup of the functional

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| | | | | committee and election of its members
5. Internal control, etc. |
| --- | --- | --- | --- | --- |
| Results: It is shown that the overall board of directors and functional committees have fulfilled the responsibility of advising and supervising the Company on its strategies, major businesses and risk management, and have established an appropriate internal control system; the overall operation is in good condition and in compliance with the requirements of corporate governance. | | | | |
| IV. Enhancements to the functionality of board of directors in the current and the most recent year (e.g. assembly of Audit Committee, improvement of information transparency etc.), and progress of such enhancements:
1. The Company has set up an audit committee on June 16, 2020 to replace supervisors and strengthen the functions of the board of directors.
2. In addition to providing directors with relevant laws and regulations from time to time, the Company reports the current business status of the Company to directors and supervisors when the board of directors is convened, and prepares relevant information and assigned personnel for the reference of directors and supervisors.
3. Uphold the transparency of operations, safeguard the rights and interests of shareholders, and take the initiative to disclose important information such as resolutions of board meetings on the Company’s official site
4. Actively provide information on various refresher courses, and encourage directors and supervisors to actively participate in various corporate governance courses to strengthen the capacity of members of the Board of Directors. | | | | |

(II) The operation of the Audit Committee or:
1. The Company set up an Audit Committee on June 16, 2020, whose operation is listed as follows:

A total of 6 meetings were held in 2025, and the independent directors’ attendance records are as follows:

Position	Name	Attendance in Person	Number of proxy attendance	Percentage of in-person attendance (%)
Independent director	Ming-Lei Chang	6		100%
Independent director	Yin-Tien Wang	6		100%
Independent director	Chang-Lin Chan	5		83%
Independent director	Chen-Chien Hsu	4	2	67%
Other mandatory disclosures:
I. The functions and powers of the Audit Committee are as follows:
1. To correct or revise the internal control system.
2. To assess efficiency of the internal control system.
3. To establish or amend for material financial or business transactions such as acquisition or disposal of assets, derivatives trading, lending of funds to others, endorsements or guarantees.

Matters involving the director’s personal interests.
Transactions of important assets or derivative products.
Major extension of loans to others and endorsements/guarantees.
Placement, issuance or private placement of any securities with an equity nature.
Appointment, dismissal or remuneration of certifying CPAs.
Appointment and dismissal of the finance, accounting, or internal audit manager.
The annual financial report signed or sealed by the chairman, managerial officers and accounting supervisor, and the financial report for the second quarter that must be audited and certified by a CPA.
Any other material matter so required by the Company or the competent authorities.

II. If the Audit Committee’s operation has any of the following circumstances, state the date of the meeting, the session, the contents of the motions, independent directors’ objections or reservations or the contents of their major suggestions, the Audit Committee’s resolution, and how the Company responded to the Audit Committee’s opinion.

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

Date and session of the meeting	Motion	Independent directors’ dissented opinions, qualified opinion, or material suggestion content	Audit Committee Results of Resolutions
2025.02.27 1st meeting	1. Proposal to approve the Company’s draft 2024 financial statements and the draft consolidated financial statements.
2. Proposal to approve the Company’s 2024 earnings distribution proposal.
3. Discussion of the Company’s 2024 “Assessment of the Effectiveness of Internal Control System” and “Internal Control System Statement”.
4. Assessment of the certifying CPA’s independence and suitability.
5. Proposal to approve	None	The proposals were passed without objection after the chairman’s consultation with all the attending members, and were submitted to the board meeting for resolution.	None

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	the provision of non-assurance services by PwC Taiwan and its affiliates to the Company and its subsidiaries.
2025.04.11 1st Special meeting	1. Proposal Disposal of US treasury bonds.
2. Proposal Disposal of US treasury bonds.
3. Proposal Disposal of US treasury bonds.
4. Proposal Disposal of US treasury bonds.	None	The proposals were passed without objection after the chairman's consultation with all the attending members, and were submitted to the board meeting for resolution.	None
2025.05.08 2nd meeting	1. Amendments to the Company’s “Regulations Governing the Acquisition and Disposal of Asset”.	None	The proposals were passed without objection after the chairman's consultation with all the attending members, and were submitted to the board meeting for resolution.	None
2025.08.07 3th meeting	1. Proposal to approve the Company’s draft consolidated financial statements for the second quarter of 2025 which were prepared by the Company and reviewed by the CPA.
2. Review of the Certifying CPA’s professional fees.	None	The proposals were passed without objection after the chairman's consultation with all the attending members, and were submitted to the board meeting for resolution.	None
2025.11.06 4th meeting	1. Amendments to the Company’s “Regulations Governing the Acquisition and Disposal of Asset”	None	The proposals were passed without objection after the chairman's consultation	None

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	2. Proposed to add "Management Procedures for Defining the Scope of Entry-Level Employees" to the Company's internal management system.		with all the attending members, and were submitted to the board meeting for resolution.
2025.12.18
5th meeting	1. Proposed to amend the "Management Procedures for Defining the Scope of Entry-Level Employees" to the Company's internal management system	None	The proposals were passed without objection after the chairman's consultation with all the attending members, and were submitted to the board meeting for resolution.	None

(II) Other than the aforementioned matters, matters not approved by the Audit Committee but approved by two-thirds or more of all the directors: None.

III. For the avoidance by independent directors due to conflicts of interests, state the independent director’s name, contents of the motion, reasons for the avoidance due to conflicts of interests, and the status of participation in voting: None.

IV. Communication between the independent directors and the internal audit supervisor and the CPA (including the material matters, methods and results of the communication on the Company's financial and business status).

Date	Key points of the meeting/communication	Communication results
2025.02.27	1nd audit committee meeting in 2025:
1. Reporting of the Audit Manager:
(1) Reporting on internal audit issues.
2. Communication between the independent directors and the CPA:
(1) Audit scope and findings in 2024.
(2) Communication matters during the 2025 planning phase.
(3) Describe the audit quality indicators and the International Code of Ethics for Certified Public Accountant.	Well known
2025.05.08	2nd audit committee meeting in 2025:
1. Reporting of the Audit Manager:
(1) Reporting on internal audit issues.
2. Communication between the independent directors and the CPA:
(1) Post-review communication matters for the first quarter of 2025.	Well known

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	2025.08.07	3th audit committee meeting in 2025: 1. Reporting of the Audit Manager: (1) Reporting on internal audit issues. 2. Communication between the independent directors and the CPA: (1) Post-review communication matters for the second quarter of 2025. (2) Recent legal reminders. 3. Exclusive meeting between committee members and the CPA:None.	Well known
	2025.11.06	4th audit committee meeting in 2025: 1. Reporting of the Audit Manager: (1) Reporting on internal audit issues. 2. Communication between the independent directors and the CPA: (1) Post-review communication matters for the third quarter of 2025. 3. Communication between the independent directors and the Internal audit: Director Chang-Lin Chan suggested that the Company evaluate the introduction of AI tools to assist in the execution of audit work.	Well known
	2025.12.18	5th audit committee meeting in 2025: 1. Reporting of the Audit Manager: (1) Reporting on internal audit issues. (2) The Company’s 2025 audit plan.	Well known

(III) Differences from Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies and reasons:

Assess criteria	Actual governance			Deviation and causes of deviation from Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies
	Yes	No	Summary
I. Does the Company follow the “Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies” to	V		The Company has established the “Corporate Governance Best Practice Principles”, “Code of Ethical Corporate Management” and “Code of Ethics”, and has a sound internal control system and various management measures; in addition, the Company refers to relevant laws and regulations to comply with the requirements of the Corporate Governance Best Practice	Compliant

Assess criteria	Actual governance
	Yes	No	Summary
establish and disclose its corporate governance practices?			Principles for TWSE/TPEx Listed Companies, and has disclosed them on the Company's website.
II. Shareholding structure and shareholders' equity
(I) Does the Company have internal operating procedures for handling shareholders’ suggestions, concerns, disputes and litigation matters. If yes, has these procedures been implemented accordingly?
(II) Does the Company have a list of the major shareholders who actually control the Company and those who ultimately have control over the major shareholders?
(III) Has the Company built and executed a risk management	V		(I) The Company has a system of spokesperson and acting spokesperson, and has set up an e-mail box in the Investor Section of the Company's website to deal with shareholders' suggestions or disputes.
(II) The Company entrusts its stock affairs to a professional stock affairs agency, and has dedicated stock affairs personnel to pay attention to the changes in the equity of major shareholders at all times.
(III) The Company has formulated the “Regulations on Financial Dealings Among Affiliates”, which clearly regulate the operation as well as business and financial	Compliant
Compliant

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Assess criteria	Actual governance
	Yes	No	Summary
system and “firewall” between the Company and its affiliates?
(IV) Has the Company formulated internal regulations to prevent insiders from trading securities using undisclosed information on the market?	V		dealings with related enterprises, and has achieved a risk control mechanism.

(IV) The Company has formulated the “Code of Ethical Conduct for Directors and Managers” and “Ethical Corporate Management Procedures and Behavior Guidelines” which expressly prohibit the insiders of the Company from using information not yet published on the market to buy and sell securities. | Compliant |
| III. Composition and responsibilities of the board of directors
(I) Has the board of directors formulated diversification policies, specific management objectives and implemented them? | V | | (I) 1. The Company passed the “Code of Practice for Corporate Governance” at the 1st board meeting on March 20, 2015, and the diversification policy was formulated in Paragraph 3 and 4 of Article 20. The nomination and selection of board members are conducted in accordance with the provisions of the Company's Articles of Association to evaluate the education and experience of each candidate; in addition, the Company refers to the opinions of stakeholders and complies with the “Director Election Method” and “Code of Practice for Corporate Governance” to ensure the diversity and independence of board members.

The implementation of the diversity | Compliant |

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Assess criteria	Actual governance
	Yes	No	Summary
(II) Other than the Remuneration Committee and the Audit Committee which are required by law, does the Company set up other functional committees?	V	policy for all directors is as follows:
Among the 9 directors of the Company, there are 2 female directors accounting for about 22%, and there are 4 independent directors accounting for about 44%. 5 directors are between 61 and 70 years old, 2 between 51 and 60 years old, 1 between 41 and 50 years old and 1 between 31 and 40 years old.
3. Please refer to page 9 of the annual report for details of the policies, specific management objectives and implementation of the diversification of board members.		(II) After prudently evaluating the overall operation scale and efficiency , the Company has not yet a plan to set up other functional committees , and will further evaluate and plan
		(II) The Company will review the actual business needs and add various functional committees if there is such a need in the future.

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Assess criteria	Actual governance
	Yes	No	Summary
(III) Does the Company establish a methodology for evaluating the performance of its board of directors, implemented it on an annual basis, and submit the evaluation result to the board meeting and use it as a reference for individual director's remuneration and nomination for reappointment?	V		(III) 1. The Company has formulated the “Board of Directors Performance Assessment Method”, which stipulates that the board of directors shall conduct performance assessment for the board and its members at least once a year. The internal assessment period of the board of directors is at the end of each year, and the performance evaluation of the current year shall be carried out in accordance with these Measures.
2. On December 18, 2025, the Company completed the assessment of the board, its members and functional committees, and reviewed the results and the direction for continuous improvement in 2026.
The measurement items of the performance evaluation of the board of the Company include the following five aspects:
(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 of directors and continuing study.
(5) Internal control.
The measurement items for the performance evaluation of directors include the following:	in the future based on operational needs.
Compliant

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Assess criteria	Actual governance
	Yes	No	Summary
			(1) Understanding of the Company’s goals and mission.
(2) Understanding director duties and responsibilities.
(3) Participation in the operation of the Company.
(4) Management of internal relationship and communication.
(5) Expertise of directors and continuing study.
(6) Internal control.
The measurement items for the performance evaluation of functional meetings include the following:
(1) Participation in the operation of the Company.
(2) Awareness of the duties of the functional committee.
(3) Quality of decisions made by the functional committee.
(4) Makeup of the functional committee and election of its members.
(5) Internal control.

This assessment is conducted by means of an internal questionnaire, and directors also participate in the assessment of themselves. According to the results of the performance evaluation of the board of directors on December 18, 2025, the overall operation of the board is good, and the results were submitted to the board meeting on March 04, 2026. The Company will report the performance evaluation result to the board meeting, and use it as a reference for individual director remuneration and nomination for reappointment. | |

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Assess criteria	Actual governance			Deviation and causes of deviation from Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies
	Yes	No	Summary
(IV) Does the Company regularly evaluate the CPAs’ independence?	V		(IV) The Board of Directors of the Company has made reference to the Audit Quality Indicators (AQIs) and Articles 46 and 47 of the Certified Public Accountant Act, and has the Accounting Department evaluate the independence and suitability of the CPAs annually. The results of the most recent evaluation on March 04, 2026 were evaluated by the Audit Committee based on the “Table for Evaluation of Competency and Independence of Certified Public Accountants” and the “AQI Information” and “Declaration of Independence” issued by the certified public accountants, and then reviewed and approved by the Board of Directors. None of the Company's CPAs and the related staff are found to be in breach of independence and being unqualified.

The items on the "CPA Competency and Independence Evaluation Form" are as follows:

The CPAs or members of the audit team are not employees of the Company.
The CPAs or members of the audit team have not served as directors, supervisors, managers, or employees with significant influence over the attestation case at the Company in the current or most recent two years.
Have no financial dealings with the Company except for accounting services.
The CPAs or members of the audit team are not spouses of, or direct relatives by blood or marriage (including second cousins) to, the persons in charge or managers of | Compliant |

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Assess criteria	Actual governance
	Yes	No	Summary
			5. the Company.
6. The CPA or members of the audit team have no investment or profit-sharing relationship with the Company.
7. The CPA or members of the audit team do not hold any stocks, corporate bonds, or other securities of the Company.
8. Execute management consulting or other non-certification businesses which are sufficient to affect independence.
9. Other stakeholder relationships regulated by the financial report preparation criteria by the competent authority.
10. Proved by other laws and regulations or facts that either party directly or indirectly controls the personnel, finance or business operators of the other party.
11. The name of a CPA may not be used by others.
12. Do not disclose the Company's financial or business secrets, and do not disclose the financial and business secrets of other clients to the Company.
13. Sanctioned by the competent authority in the past two years which was sufficient to impact his reputation.
14. Having pending or adjudicated judicial litigation cases in the past two years which was sufficient to impact his reputation.

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Assess criteria	Actual governance
	Yes	No	Summary
			15. Does the accounting firm have a clear quality control procedure? Does the accounting firm include key aspects of the audit procedures, how to handle and resolve audit issues, quality control over independence, and risk management?
16. Does the accounting firm have sufficient scale and resources to provide audit services to the Company?
17. Whether a statement of independence has been signed.
IV. Has the TWSE/TPEX listed company allocated an adequate number of competent corporate governance staff and appointed a corporate governance officer to oversee corporate governance affairs (including but not limited to providing directors/supervisors with the information needed to perform their duties, assisting directors/supervisors	V		On August 3, 2022, the board meeting passed a resolution designating the senior VP of the administrative department who has held the position of director of corporate governance related affairs for a public company for at least 3 years to serve as the director of corporate governance. The main responsibilities are as follows:
(I) Handling matters related to the board meeting and shareholders' meeting in accordance with the law.
(II) Preparing the minutes of the board meeting and shareholders' meeting.
(III) Assisting in onboarding and continuous study of directors.
(IV) Providing the information required by the directors to carry out their business.
(V) Assisting directors in complying with laws and regulations.
(VI) Report to the board meeting the inspection results on whether the qualifications of independent directors during the nomination, election and tenure periods comply with relevant laws and regulations.
(VII) Handling matters related to changes in directors.	Compliant

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Assess criteria	Actual governance			Deviation and causes of deviation from Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies
	Yes	No	Summary
ors with compliance issues, the convention of board meetings and shareholder meetings, and preparation of board/shareholder meeting minutes)?			(VIII) Other matters stipulated in the Articles of Association or contracts of the Company.
V. Does the Company establish a means of communicating with its stakeholders (including but not limited to shareholders, employees, customers, suppliers, etc.) or created a Stakeholders Section on its Company website? Does the Company respond to stakeholders’ concerns on corporate social responsibilities?	V		The Company has established a spokesperson system to handle related matters in accordance with regulations, and is setting up a Stakeholder Section on the Company's website.	Compliant
VI. Does the Company engage a share transfer agency to handle shareholder meeting affairs?	V		The Company appointed Yuanta Securities to handle the affairs of the shareholders' meeting.	Compliant

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Assess criteria	Actual governance			Deviation and causes of deviation from Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies
	Yes	No	Summary
VII. Information disclosure
(I) Has the Company set up a website to disclose finance and business matters and corporate governance information?
(II) Does the Company use other information disclosure channels (e.g. maintaining an English-language website, designating staff to handle information collection and disclosure, implementing the spokesperson system, webcasting investors conference etc.)?
(III) Does the Company publish and make the official filing of the annual financial report	V		(I) The Company has set up a website to disclose financial, business, corporate governance and stock affair related information.
(II) The Company has a spokesperson system and announces important information and financial information on the MOPS.	Compliant
	V		(III) The Company announces the annual and the first, second and third quarter financial reports and the monthly operation situation within the specified time.	Compliant

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Assess criteria	Actual governance			Deviation and causes of deviation from Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies
	Yes	No	Summary
within two months after the end of an accounting period, and publish/file Q1, Q2 and, Q3 financial reports along with monthly business performance before the designated due dates?
VIII. Does the Company have other information that enables a better understanding of the Company's corporate governance practices (including but not limited to employee rights, employee care, investor relations, supplier relations, stakeholders' interests, continuing education of directors/supervisors, implementation of risk management	V		Please refer to the table below for other important information.	Compliant

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Assess criteria	Actual governance
	Yes	No	Summary
policies and risk measurements, implementation of customer policy, and liability insurance for directors and supervisors)?
1. Employee rights and employee care
The Company widely collects suggestions from employees, establishes systematized proposal, communication and complaint channels to allow reasonable and appropriate voicing, reply and handling of employees’ expectations, suggestions, doubts and grievances, and attaches great importance to employees’ rights and interests and expresses its care about employees; the Company has formulated measures for the prevention of and appeal against sexual harassment of employees, and established a gender-equal working environment; the Employee Welfare Committee organizes various travel activities for employees every year, and employees with outstanding work performance are awarded at the end of the year.
2. Investor relationship
The Company upholds the principle of fairness and openness to all shareholders. It convenes a shareholders' meeting every year in accordance with the provisions of the Company Act and relevant laws and regulations, and informs all shareholders to attend the shareholders' meeting in accordance with relevant regulations. The Company encourages shareholders to actively participate in the election of directors and supervisors at the shareholders' meeting or amend the Company's Articles of Association, and will report major financial activities such as acquisition or disposal of assets and endorsements/guarantees to the shareholders' meeting. The Company also provides shareholders with sufficient opportunities to ask questions or make proposals, so as to achieve the effect of checks and balances; it also formulates the Rules and Procedures of Shareholders’ Meeting according to law, and properly keeps the shareholders’ meeting minutes and fully discloses relevant information on the MOPS. In addition, in order to ensure that shareholders have the right to fully know, participate in and make decisions on the Company's major issues, the Company has set up the positions of spokesperson and acting spokesperson, and has designated personnel to handle shareholders' suggestions, doubts and disputes.
Since the Company's public offering, in line with the principle of information disclosure,

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Assess criteria	Actual governance
	Yes	No	Summary
the Company has dedicated personnel responsible for collecting and disclosing company information, handling relevant information announcements and declarations, and providing timely information that may affect investors' decision-making.
3. Protection of stakeholders
The Company protects the rights and interests of stakeholders (such as customers, investors, employees, suppliers, creditors, analysts and accountants) through the following methods:
(1) Set up a dedicated department to handle matters related to stakeholders in order to safeguard the rights and interests of stakeholders.
(2) Actively respond to the questions of stakeholders through open and transparent channels.
(3) Disclose relevant information to stakeholders in open channels of communication.
(4) Strengthen the functions and roles of the board of directors of the Company.
(5) Independent directors actively participate in the board meeting of the Company and play a supervisory role.
(6) The “Code of Ethical Conduct for Directors and Managers” has been formulated in order to make the conducts of the directors and managers of the Company in line with the ethical standards.
4. Directors’ ongoing education:
The 2025 director training information is as follows:
Courses
Name		Economic Outlook for the U.S. and China and Prospects for Taiwan’s Industries under Trump 2.0	The Role of Directors and Supervisors in Overseeing Enterprise Risk Management and Crisis Handling, Including Gender Equality Issues	Number of hours
Total
Chairman	Lien-Hsi Wu	3	3	6
Directors	Ting-Ting Shih	3	3	6
Directors	Wu-Hsiung Chen	3	3	6
Directors	Chia-Hsiang Wu	3	3	6
Directors	Chun-Wei	3	3	6

Assess criteria	Actual governance					Deviation and causes of deviation from Corporate Governance Best-Practice Principles for TWSE/TPEX Listed Companies
		Yes	No	Summary
		Wu
	Independent director	Yin-Tien Wang	3		3	6
	Independent director	Chang-Lin Chan	3		3	6
	Independent director	Chen-Chien Hsu	3		3	6
Title		Name	Courses				Training Hours
Independent director	Ming-Lei Chang	Corporate Governance Series Forum				3
		Corporate Governance Series Forum				3
5. Implementation of risk management policies and risk measurement standards (1) The Company has formulated the “Procedures for Financial Transactions between Related Parties” and the “Management Measures for Customer Credit Investigation” to clearly define the risk control mechanism, and the Company's internal control system has included supplier management operations and customer management operations on the checklist. (2) The Finance Department of the Company holds regular monthly meetings to report on the Company's risk control implementation status of the exchange gain and loss, investment and capital income and expenditure management, overdue account management, business analysis of reinvested companies, financial index performance management and inventory management. Financial asset impairment assessment and provision policy: On each balance sheet date, for those whose credit risk has increased significantly since the original recognition, the loss provision shall be measured according to the expected credit loss amount during the existence period; for accounts receivable or contract assets which are not included as significant financial components, the loss provision is measured at the amount of expected credit loss in the duration. Inventory depreciation loss provision policy: Inventory is stated at the lower of cost or net realizable value. The amount in cost is determined using the weighted average method. The cost of finished goods and work-in-progress, including raw materials, direct labor, other direct costs and production-related manufacturing overheads, are allocated according to the actual production capacity; the actual production capacity is not significantly different from the normal production capacity, but it does not include borrowing costs. The lower of cost or net realizable value is compared on an item-by-item basis. Net realizable value

Assess criteria	Actual governance
	Yes	No	Summary
refers to the remainder of the estimated selling price after deducting variable selling expenses over the normal operating cycle and estimated costs to completion.
6. Customer management operations
The company has a quality assurance department to provide transparent and effective after-sales service and customer complaint handling for products and services.
7. Purchase of liability insurance for directors and managers
The Company has purchased liability insurance for directors and managers since May 1, 2019, and has reported and announced the relevant insurance status on the MOPS.
IX. Please explain what has been improved on the results of the corporate governance evaluation issued by the Corporate Governance Center of the Taiwan Stock Exchange in the most recent year, and the proposals of priority enhancements and measures for those that have not yet improved.	V		I. Items already improved:
1. Has the company set up an audit committee that meets the requirements?
Improvement: The company has established an audit committee after the 2020 shareholders meeting.
2. Has the company's internal rules been formulated and disclosed on the company's website to prohibit insiders such as company directors or employees from making profits from information that cannot be obtained in the market?
Improvement: It is disclosed on the Company's website the specific measures for the prohibition of insider trading (such as: holding training courses, the objects, course content, etc.).
3. Has the company been certified by ISO 14001, ISO50001 or similar environmental or energy management systems?
Improvement: The date of obtaining the certification and its validity period have been disclosed in the Company's annual report and website.
4. Did the Company upload the shareholders’ meeting handbook and supplemental materials 30 days prior to the general shareholders’ meeting? ?	Compliant

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Assess criteria	Actual governance
	Yes	No	Summary
			Improvement: The shareholders’ meeting handbook and supplemental materials have been uploaded to MOPS 30 days prior to the general shareholders’ meeting.
5. Has the company disclosed its annual greenhouse gas emissions, water consumption and total waste weight for the past two years?
Improvement: The head office has introduced ISO14064-1 organization-level greenhouse gas emission quantitative report and external verification.
6. Does the Company convene the general shareholders' meeting before the end of May?
Items of improvement: The 2025 general shareholders' meeting was held on May 28.
7. Does the Company prepare a sustainable report and obtain third-party verification?
Items of improvement: Corrective action has been taken in favor of the sustainability of the Company's operations, and the Company has been certified by a third party.
8. Does the Company disclose the annual financial report audited and certified by CPAs within two months after the end of the fiscal year?
Items of improvement: The 2024 financial statements were published on February 27, 2025.
II. Items for priority improvement:
1. The Board of Directors shall conduct at least one external evaluation every three years.
2. Upload the English version of the Sustainability Report

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(IV) If the company has set up a remuneration committee, disclose its composition, responsibilities and operations:

The board meeting of the Company established the Remuneration Committee in 2011; its main functions are to review the human resources policy, remuneration, retirement benefits and other policies, and submit the review results to the board meeting for approval. Operation of the Remuneration Committee in 2025: Reviewed the Company's salary policy, human resources, and employee dividend and bonus payment policies.

Information of Remuneration Committee members

| Criteria
Identity and name
(Note 1) | | Professional qualifications and experience | Independence status | Number of positions as Remuneration Committee member in other public companies |
| --- | --- | --- | --- | --- |
| Convener and Independent Director | Yin-Tien Wang | With more than five years of experience required for the Company's business.
Current position:
Dean of the Department of Artificial Intelligence and Professor of the Department of Mechanical and Electrical Engineering, Tamkang University
Experience:
Professor and Dean, Department of Mechanical and Mechatronic Engineering, Tamkang University | 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 hold more than 1% of the total issued shares of the Company in his/her or his/her spouse’s or minor children’s or another person’s name, or is not a top ten individual shareholder.
4. Not a manager in paragraph 1 or the spouse, second-tier relative or third-tier relative of the persons listed in paragraphs 2 and 3.
5. Not a director, supervisor or employee of a corporate shareholder which directly holds more than 5% of the total issued shares of the Company, or a top five shareholder, or which appoints him/her as its representative to serve as the Company’s director or supervisor in accordance with Paragraph 1 or 2 of Article 27 of the Company Act.
6. Not a director, supervisor or employee of another company which has a seat on the board of directors, or more than half of its shares with voting rights are controlled by the same owner of the Company.
7. Not a director, supervisor or employee of another company or institution who is the same person or spouse as the Chairman, President or an equivalent position of the Company
8. Not a director, supervisor or manager of another company or institution which has financial or business dealings with the Company, or is a shareholder holding more than 5% of the shares of the Company
9. Not a professional, sole | 1 |
| Independent director | Ming-Lei Chang | With more than five years of experience in finance or accounting and a CPA license.
Current position:
Dean of the College of Business, Chung Yuan Christian University
Experience:
Associate Professor, Accounting Group, School of Management, Yuan Ze University | | 2 |
| Independent director | Chang-Lin Chan | With more than five years of experience required for the Company's business.
Current position
President, Advanced Innovation Management Co., Ltd.
Experience:
President, AIM (Samoa) Co., Ltd. Taiwan Branch Vice President, Guedeng Precision Industrial Co., Ltd. | | 0 |

Independent director	Chen-Chien Hsu	With more than five years of experience required for the Company's business. Current position Distinguished Professor, Department of Electrical Engineering, National Taiwan Normal University Experience: Associate Professor, Department of Electrical Engineering, Tamkang University Patent Examination Commissioner, Intellectual Property Office, MOEA Lecturer, Department of Engineering, Murdoch University, Australia System Engineer, IBM Taiwan	proprietor, partner, business owner or partner, or a director, supervisor, manager or the spouse of the above of a company or institution which provides audit services to the Company or its affiliated enterprises, or the cumulative remuneration amount of which in the past two years exceeds NT$500,000 for business, legal affairs, finance or accounting related services. 10. Not a spouse or relative of the second degree or closer to any other directors. 11. Not a government agency, a legal person or their representative as stipulated in Article 27 of the Company Act.	0

Note 1: Article 2 of the Articles of Association of the Remuneration Committee of the Company specifies the functions and powers of the Committee:

The Committee shall faithfully perform the following functions and powers with the attention of a good manager, and submit its recommendations to the board meeting for discussion.

I. Formulate and regularly review the policies, systems, standards and structures for the performance evaluation and remuneration of directors and managers.

II. Periodically evaluate and determine the salaries of directors and managers.

III. Other cases discussed by the board meeting, the Chairman or the President.

When performing the functions and powers in the preceding paragraph, the Committee shall do so in compliance with the following principles:

I. For the performance evaluation and salary remuneration of directors and managers, reference shall be made to the normal level of payment in the industry, while considering the rationality of their connection with personal performance, company operating performance and future risks.

II. Directors and managers should not be led to engage in any behavior that exceeds the Company's risk appetite for the pursuit of remuneration.

III. The proportion of dividends paid for the short-term performance of directors and senior managers and the timing of payment of some variable salaries should be determined in consideration of industry characteristics and the nature of the Company's business.

Information on the operations of the Remuneration Committee

(1) There are 4 members of the Remuneration Committee of the Company. (2) Term of office of the current members: From June 14, 2023 to June 13, 2026. (3) In 2025, the Remuneration Committee held two meetings, and the qualifications and attendance status of the members are as follows:

Position	Name	Number of actual attendance	Number of proxy attendance	Percentage of actual attendance
Convener	Yin-Tien Wang	2	0	100%
Member	Ming-Lei Chang	2	0	100%
Member	Chang-Lin Chan	2	0	100%
Member	Chen-Chie n Hsu	1	1	50%
Other mandatory disclosures:
I. If the board meeting does not adopt or amend the recommendations of the Remuneration Committee, state the date of the meeting, the session, the contents of the motions, the board meeting resolution, and how the Company responded to the opinion of the Remuneration Committee: None.
II. For resolutions of the Remuneration Committee, if any members has objections or reservations with records or written statements in place, state the date of the Remuneration Committee meeting, the session, the contents of the motions, the opinions of all members and the handling of member opinions: None.

Note:
(1) If a member of the Remuneration Committee resigns before the end of the year, the date of resignation shall be indicated in the remarks column, and the actual attendance rate (%) shall be calculated based on the number of meetings of the Remuneration Committee and the number of actual attendance during the term of office.
(2) Before the end of the year, if there is a re-election of the Remuneration Committee, fill in the new and old members of the Committee, and indicate in the remarks column the old, new or re-appointed members and the date of re-election. The actual attendance rate (%) is calculated based on the number of meetings held by the Remuneration Committee and the actual number of attendance during the term of office.

The discussion items and resolutions of the Remuneration Committee in 2025:

Date of meeting	Motion	Independent directors' opinions	Company's response to independent directors' opinions	Results of Resolutions
2025.02.27
1st meeting	Proposal to approve the remuneration distribution plan for employees and directors for 2024.	None	None	The proposal was unanimously approved by all members present.
2025.12.18
2nd meeting	Proposal to approve the Company’s 2025 year-end bonus.	None	None	The proposal was unanimously approved by all members present.

(V) Promotion of social responsibilities and differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons:

Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
I. Has the Company established a governance structure to promote sustainable development, and designated a full-time (part-time) unit to promote sustainable development, which is to be handled by the senior management with the authorization of the Board of Directors, and the actual supervision of the Board of Directors?	V		The Company's board of directors has approved the Sustainable Development Best Practice Principles. The Board of Directors authorizes the President to establish the Sustainability Implementation Committee, and appoints the President as the Chair. The Sustainability Implementation Committee shall formulate the sustainable development policy and is responsible for promoting and the concept of sustainable operation to be integrated into the Company's corporate culture. In order to ensure that sustainable development covers environmental, social and corporate governance (hereinafter referred to as ESG), the Sustainability Implementation Committee has established a special task force in which the responsible departments shall collect stakeholders' opinions on environmental protection, occupational safety and health, supply chain management, labor and human rights, business performance, corporate governance and other issues of concern. Out of respect for stakeholders, the Company has set up a stakeholder section on the Company's official site to appropriately respond to their concerns about important sustainability issues. The Company also plans to report the ESG implementation results to the Board of Directors annually to strengthen the participation of the Board of Directors in the Company's ESG implementation results.	Compliant
II. Has the Company conducted a risk assessment on environmental, social, and corporate governance issues that are	V		For the Company in 2025, the boundary of risk assessment is mainly based on the head office and Xizhi Plant in Taiwan. The Sustainability Implementation Committee distributes questionnaires to key stakeholders to obtain scores for their concern to various sustainability issues; then it will distribute questionnaires to the Company's senior	Compliant
companies and their employees.			companies and their employees.

Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
relevant to its operations and implemented risk management policies or strategies based on principles of materiality?			executives to fill in the impact of each sustainability issue on the Company. The two scores will be combined to obtain the materiality matrix chart. After discussion by the Sustainability Implementation Committee, the top 6 sustainability issues from the three aspects respectively known as environment, society, and economy will be listed as the material topics for the current year. It is confirmed that the major topics in environmental, social, and economic aspects that the Company shall disclose with priority for the current year are energy conservation and carbon reduction, sustainable supply chain management, remuneration and benefits, operational performance, information security, and talent development. The Company will explain the management policy and related disclosed items for each material topic in the sustainability report. At the same time, it will maintain the balance of information in the sustainability report, and disclose the results of the Company's participation in public welfare.
III. Environmental issues
(I) Has the Company set up an appropriate environmental management system based on the characteristics of its industry?	V		(I) The Company has established environmental, health, and safety management measures, management information systems, and office automation systems in accordance with environmental protection laws and regulations (such as the Air Pollution Control Act, the Water Pollution Control Act, the Waste Disposal Act, and the Toxic and Concerned Chemical Substances Control Act) established by the Ministry of Environment, and promoted the implementation of ISO 14001 at its various plants. To conserve energy and resources, the Company replaced company cars with hybrid ones and installed energy-saving devices in offices, resulting in reduced energy	Compliant
Compliant

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Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
(II) Is the Company committed to achieving efficient use of resources and uses recycled materials that produce less impact on the environment?	V		consumption. In waste management, the Company has cut down its use of paper and presentation slides. The Company has obtained and passed the certification of the new version of ISO 14001 environmental management system (valid from December 22, 2023 to December 21, 2026), and handles all environmental management requirements including raw material acquisition, production process, design and development, product disposal, and final disposal in accordance with the environmental management system and environmental laws and regulations, and reviews the implementation results at all times for continuous improvement.

(II) To implement energy conservation and carbon reduction and promote green operation goals, Chant Sincere is committed to continuously improving energy use efficiency. Chant Sincere reduces the impact of its business activities on the environment through energy management strategies and specifically implements the following energy conservation measures:
1. Set the indoor air conditioning temperature to the optimal level of 26°C, and install appropriate curtains and thermal film, taking into account varying sun exposure and heat loads.
2. Clean and maintain air-conditioning equipment regularly to ensure high efficiency.
3. Implement waste sorting, reduction, and recycling.
4. Strengthen staff education and training to enhance emergency response capabilities.
5. Conduct workplace environment testing in compliance with the law so as to provide employees with a safe and comfortable working environment. | Compliant

Compliant |

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Promotion items	Status of implementation
	Yes	No	Summary Description
			6. At internal meetings, colleagues are encouraged to bring their own water bottles or mugs.
7. Computers and monitors are turned off after work.
8. Select air conditioners and refrigerators with energy-saving labels. Toner cartridges with eco-friendly labels are used for multi-function printers (low temperature and reducing paper jams).
9. Employees bring their own cutlery and cups to reduce the use of disposable ones.
10. Turn down the faucet flow to effectively save water.
11. Turn off the lights, air conditioner, and projector in the conference room after the meeting.
12. LED energy-saving and carbon-reducing lamps and bulbs are used in the office.
Performance:
1. Internal ESG training totaled 64 hours.
2. Conducted 5S environmental management audits monthly.
Future plans:
Plan to introduce an intelligent energy monitoring system to perform real-time monitoring and analysis of electricity usage – the goal is to enhance the accuracy of energy management decision-making with a data-driven approach. The Company also actively takes steps toward low-carbon operation by gradually expanding the application of energy conservation measures.
(III) Does the Company evaluate the potential risks and	V		(III) Please refer to Table 1.

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Promotion items	Status of implementation	Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary Description
opportunities of climate change to the Company now and in the future, and take corresponding measures to respond to climate related issues? (IV) Does the Company make statistics on greenhouse gas emissions, water consumption and the total weight of waste for the past two years and formulate policies for energy conservation and carbon reduction, greenhouse gas reduction, water consumption reduction or other waste management?	V
Direct greenhouse gas emissions (mt CO2e)	Direct emissions (Scope 1)	Indirect emissions (Scope 2)
2024	31.6967	309.4533
2025	27.5746	291.9810
2. According to the ISO14064-1:2018 standard, the data from the inventory of the head office and Dongguan Factory in the past two years are as follows. For 2023 to 2024, a third-party SGS verification certificate has been obtained:

Promotion items	Status of implementation							Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
			Direct greenhouse gas emissions (mt CO2e)	Direct emissions (Scope 1)	Indirect emissions (Scope 2)	Other emissions (Scope 3)	Total
			2023	25.03	395.68	1,920.52	2,341.23
			2024	31.14	836.41	2,674.62	3,542.17
IV. Social Issues (I) Has the company formulated relevant management policies and procedures according to relevant laws and regulations and the International Bill of Human Rights?	V		(I) 1. In addition to complying with local labor laws and regulations, the Company has formulated the employee handbook and management regulations, and also upholds the spirit and basic principles of human rights protection promulgated in international human rights conventions such as the “UN Universal Declaration of Human Rights” and the “International Labor Convention”, and is committed to integrating human rights principles and spirit into the Company's values and culture to treat all employees with dignity and respect. This policy applies to all managers and employees (individuals employed by Coxoc who perform work in exchange for wages or remuneration), affiliates, suppliers, partners (including customers and communities), and other stakeholders, and is committed to eliminating any human rights violations. The Company's implementation policies and human rights protection measures are as follows:					Compliant
			Implementation policies	Specific measures
			Provide a safe and hygienic work environment	Establish a safe and hygienic working environment to prevent accidents and ensure employee safety.
			Eliminate unlawful discrimination and ensure equal job opportunities	Firmly follow labor laws and gender work equality regulations.
			Prohibition of child labor	Employment of workers under the age of 16 is prohibited.
			Prohibition of forced labor	When it is necessary to extend working hours beyond the normal working hours, the Company may do so only after

Promotion items	Status of implementation
	Yes	No	Summary Description
				obtaining the consent of the employees themselves.
			Employee health management	1. Regularly hold employee health management sessions.
2. Regular organize staff travel and welfare activities.
			The Company has established a human rights governance structure with the Board of Directors at the highest level. A cross-departmental human rights task force was formed under the "ESG Committee". The task force comprises the following functional organizations: Corporate Information Security, Corporate Sustainability, Customer Service, Environmental, Health, and Safety, Human Resources, Information Technology, Legal Affairs, Materials Management, Operations, Quality and Reliability, and Research and Development. For instance, if a violation of the Company’s human rights policy occurs, the receiving unit will forward the issue to the responsible unit, and employees will be informed as appropriate to maintain gender equality in the workplace.
2. The Company’s human rights due diligence is primarily based on the EU’s Corporate Sustainability Due Diligence Directive and the OECD Guidelines for Responsible Business Conduct to establish human rights due diligence procedures. These procedures identify and assess human rights risks, design risk management and mitigation measures, and include improvement and follow-up actions to effectively reduce the impact of human rights risks.
• Scope of investigation: All employees of the Company
• The implementation steps are described below:

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Promotion items	Status of implementation	Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary Description

ii. Termination and prevention: Implement risk mitigation and remediation measures for negative human rights impacts.
iii. Follow-up: Track implementation and benefits.
iv. Communication: Information disclosure
● With reference to international human rights standards and the human rights issues prioritized by domestic peers, the Company identified the following human rights issues:
1. Health and safety
2. Right to privacy
In 2025, the Company assessed human rights risks related to all employees and tier-1 suppliers. Following prioritization based on potential impact, the Company proposed mitigation and remediation measures for high-risk human rights issues to reduce these risks.	Compliant
High-risk issues	Corrective measures	Risk mitigation
Health and safety	Increase inspection, factory visit frequency, and education and training for high-risk work areas to prevent similar accidents and achieve the "zero injury" goal.	Employee health checkup
Right to privacy	The Company has established a mechanism for reporting and responding to	The Company continues to promote regular

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Promotion items	Status of implementation
	Yes	No	Summary Description
(II) Does the Company establish and implement reasonable employee benefit measures (including remuneration, leaves and other benefits) and adequately	V			information security incidents. In the event of a data breach, the Company will immediately launch an investigation and take compensatory and corrective measures in accordance with relevant regulations to minimize the impact.	information security training and simulations for employees to ensure that information processing, access, and storage comply with laws and regulations. It also has permission controls and approval processes for data access, internal sharing, and external transmission to effectively prevent data misuse and unauthorized disclosure.
			(II) In addition to actively implementing humanistic management and various welfare measures, the Company has formulated various reward and remuneration measures to distribute performance awards and employee remuneration in a timely manner to motivate employees. In addition, various benefits such as three-festival gifts, birthday gifts, wedding gifts, maternity subsidies and funeral subsidies are granted to attract talents and retain employees. Under the concept of

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Promotion items	Status of implementation
	Yes	No	Summary Description
reflect its operating performance or result to the employee remuneration?			workplace diversity and equality, at the end of 2025, female employees accounted for 56%, and female senior executives also accounted for 50%. Employees with outstanding performance have good opportunities for promotion, and various types of bonuses and remuneration are closely related to personal work performance. Employee benefit measures are as follows:
1. Three-festival gifts, birthday gifts, wedding gifts, maternity subsidies and funeral subsidies
2. Employee stock ownership trust
3. Unscheduled employee trips
4. Group insurance, occupational accident insurance, business travel insurance, etc. To protect employees’ financial planning for retirement, the Company’s pension system is explained below:
1. The Company established a "Labor Pension Reserve Supervisory Committee" in accordance with the Labor Standards Act to review the amount and payment of labor pension reserves. In 2025, the Company contributed 4.7% of the total monthly salary to the pension fund and deposited it into the Bank of Taiwan's pension account; as of December 31, 2025, the pension account balance was NT$19,357 thousand.
2. For those subject to the Labor Pension Act, 6% of the employee's monthly insured salary is deposited into their individual pension account at the Labor Insurance Bureau; NT$6,462 thousand was allocated in 2025.
3. Chant Sincere encourages employees to contribute to their own pensions, not only for tax savings but also to enhance their retirement security. In 2025, 17% of employees participated in the self-contribution pension program.	Compliant

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Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
(III) Operating performance or results are also appropriately reflected in the compensation of employees (annual salary adjustment and promotion based on performance appraisal).	V		The Company's employee remuneration system is based on 2% to 15% of the Company’s profit for the current year, as stipulated in the Articles of Incorporation, and an additional 5% or more must be allocated for salary adjustments or bonuses for junior employees.The Board of Directors of the Company has resolved in 2026 to allocate 74% of the employee compensation for 2025 to frontline employees.

(III) The Company's work environment and personal safety protection measures for employees are briefly described as follows:
1. Work environment protection measures
(1) Maintenance and inspection of machinery and equipment:
① All machines/instruments and equipment shall be subject to regular inspections, key inspections and operation inspections according to the requirements.
2. Environmental hygiene protection:
(1) The Company's Xizhi factory and offices are completely non-smoking, and the environment is cleaned and disinfected regularly.
(2) The Company has formulate relevant work rules for general safety and hygiene work, material handling and storage safety, electrical safety and noise workplaces, and conducts regular training to ensure the safety of personnel in various operations.
(3) Regularly outsource fire drills and publicize the basic knowledge of fire protection in accordance with the provisions of the Fire Services Act.
3. Access control and security protection:
(1) The Company's offices, warehouses and | |

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Promotion items	Status of implementation
	Yes	No	Summary Description
			factory entrances and exits are all equipped with access control, and the Company has signed a contract with a security company to maintain the safety of the offices, warehouses and factory.
4. Disaster prevention and response:
(1) The Company has labor safety and health management and first aid personnel to handle related matters, and implements training courses in accordance with regulations to continuously improve employees' awareness of labor safety and first aid.
(2) In order to properly manage, prevent and reduce the spread of infectious diseases, the Company has formulated specific management measures for the prevention of and response to infectious diseases, and takes into account various infectious disease prevention measures of the competent health and epidemic prevention authorities to effectively reduce the spread of infectious diseases in offices, warehouses and the factory, and carries out preventive management.
(3) When the Company encounters natural disasters, in addition to reporting to the competent authority according to the law, each department shall conduct pre-publicity, evacuation, and post-event inventory and recovery for the work undertaken according to the notification of the management unit, and report the progress of each work item to ensure that personnel safety in the factory and offices.
5. Personal safety protection measures
(1) Hygiene protection:
① The Company conducts health checks for all employees every three years in accordance with the law, and holds health information lecture courses with

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Promotion items	Status of implementation
	Yes	No	Summary Description
			partner hospitals from time to time.
② For foreign workers, the Company entrusts an agency company to conduct irregular health examinations; for employees with special working environments, the Company regularly conducts special health examinations.
③ The Company has formulate measures for the control of sexual harassment, and set up grievance channels to maintain gender equality in work.
(2) Insurance and medical care:
① The Company purchases labor insurance (including occupational accident insurance) and health insurance for employees in accordance with the law to provide basic protection for employees.
② The Company has signed up an insurance company with market experience and excellent evaluation to plan a group insurance scheme that meets the Company’s need, and provides the second-level protection for employees who are injured, disabled or dead due to business. For employees on business trips, travel insurance will be added to provide an extra guarantee.
③ The Company has set up a welfare committee and formulated subsidy measures such as condolences for employees’ injuries and illnesses.
(3) The implementation status for 2025 is as follows:
1. Environmental monitoring: Twice a year (February and August)
2. Fire drills: Once to twice a year (December)
3. Inspection and maintenance of equipment and machinery: Every working day	Compliant

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Promotion items	Status of implementation	Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary Description
(IV) Does the Company establish effective career development training plans for employees?	V
5. Health examinations for all employees: Once every three years; last conducted in August 2023
6. Fire safety and health seminar for all employees: December
6. Work safety inspection:	Compliant
Item	Number of times
1. Environment inspection	Twice a year
2. Fire drill	Twice a year
3. Equipment and machine inspection and maintenance	Daily
4. Health checkups for noise machine personnel	Once a year
5. Health checkups for all employees	Once every three years
7. There were no occupational hazards and fires in 2025 , and no corresponding measures were taken.
(IV) Talent is one of the important assets of an enterprise. In order to create and maintain the best human resource quality, the Company regularly invests in employee training every year, and plans complete training courses and multiple learning channels according to the job function. In the future, the Company will continue to adhere to the concept of lifelong learning and provide employees with good capability development.For Chant Sincere, the key to corporate sustainability is the continuous learning and growth of its employees. Education and training are therefore an important way to ensure that human capital continues to increase in value,

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Promotion items	Status of implementation	Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary Description

— · Common Training: A rich and diverse career training system
Name of the training program	Description
New employee training	Target: To understand the company culture, become familiar with the working environment and systems, and cultivate a positive work attitude and team spirit.
Recipient: New employees
Total hours in 2025: 52 hours (52 new employees in 2025 with each receiving 1 hour training).
General courses on the education and training platform	Target: To improve the management, professional, marketing skills, humanistic qualities, and psychological resilience of all employees.
Recipient: All colleagues
Total hours in 2025: 537 total hours on the education and training platform (approximately 3 hours per staff member).
— · Professional training: Strategic talent development to meet future challenges.
Name of the training	Description

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Promotion items	Status of implementation				Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
(V) Does the Company comply with relevant laws and international standards, and formulate relevant right and interest protection policies and grievance procedures to deal with customers for products and services, such as customer health and safety, customer privacy, marketing and labelling, etc.?	V		program		Compliant
			Talent cultivation program	Target: To train supervisors at all levels to mitigate the impact of workforce disruption.
Recipient: Train talent for supervisors at all levels.
Total hours in 2025: Supervisors at all levels received 914 hours of training (approximately 11 hours per person).
			(V) The products of the Company have obtained international ISO certifications (such as ISO 9001, ISO13485, ISO 14001, and IATF 16949) and international green energy standards (in compliance with EU RoHS regulations), with the aim of providing customers with quality products.
The Company attaches great importance to customer service, and has formulated the “Customer Service Management Procedures” and “Customer Complaint Handling Procedures”. The Company complies with relevant laws and international standards for marketing and labeling of products and services.The Company’s "Customer Complaint Handling Procedures" and complaint channels are as follows:
1. When a business unit receives a customer complaint, it should understand the reason for the complaint and handle it appropriately. A "Customer Complaint and Return Processing Form" must be filled in and submitted to the department head for approval. The form will then be forwarded to the quality

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Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
			assurance unit for root cause analysis. A copy must be retained for tracking progress.

The quality assurance unit shall investigate and analyze the root cause of customer complaints based on the "Customer Complaint and Return Processing Form". If assistance from other units is required, the quality assurance unit must coordinate with the relevant units to develop a corrective action plan using the "Customer Complaint and Return Processing Form".
The relevant units shall fill in the processing method and preventive measures in the "Customer Complaint and Return Processing Form" and submit it to the business unit to reply to the customer. If the customer requests an investigation report, the business unit must request the relevant units to complete the "Customer Complaint and Return Processing Form" with the investigation details and proposed solutions, then submit it to the business unit for delivery to the customer for record-keeping. The "Customer Complaint and Return Processing Form" must be retained by the quality assurance and business units.
If a sales return is planned, it shall be processed according to the "CS-10 Procedure for Handling Sales Returns".
If the customer's grievance is addressed directly, a "Customer Complaint and | |

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Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
(VI) Has the company formulated a vendor management policy that requires vendors to comply with relevant regulations on environmental protection,	V		Return Processing Form" must also be completed and approved by the department head before being filed. Grievance channels and procedures

The Company places a high priority on customer feedback and opinions, and maintains a "Customer Service Management Procedures Book" to govern related service operations and complaint handling. The sales department handles customer service, receives feedback, and implements improvements. We have also established a consumer contact email address and an email address for reporting ethical concerns. Customers can also provide feedback or file complaints via email to protect their rights.

Complaint hotline: (02)-8647-1251

Consumer contact: [email protected]

Integrity Management Reporting Mailbox: [email protected]

(VI) The Company's management requirements for suppliers are in compliance with environmental protection, occupational safety and health, labor rights and other issues and follow relevant norms, and the Company will regularly check whether suppliers have incidents or records that affect the environment and society, so as not to contradict the Company's corporate social responsibility policy. The following is relevant information regarding management policies. | |

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Promotion items	Status of implementation
	Yes	No	Summary Description
occupational safety and health or labor human rights issues? What is the implementation status?			I. Supplier Management Strategy
Through selection, assessment, performance evaluation, and guidance, we integrate sustainability requirements into the daily management of our supply chain based on collaboration.

Competitive cost
Build capabilities for a sustainable supply chain
Promote environmentally friendly practices and green purchasing
Focus on environmental issues and reduce environmental pollution

II. Supplier assessment
1. Relevant certificates (business license, environmental permit, etc.)
2. Better quality, guaranteed delivery, and a relatively reasonable price.
3. Capable of undertaking corresponding orders, with adequate staffing and equipment.
4. Management system is sound, and control at each stage meets the company’s requirements, with the ability to assume related responsibilities (such as legal liability for exceeding the HS threshold).
5. Stringent HSF (hazardous substance-free) management and certification to international management systems such as ISO9001, ISO14001, IATF16949, and ISO13485.

III. Supplier assessment and management
The manufacturing capacity, quality management capabilities, and requirements for | |

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Promotion items	Status of implementation	Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary Description

IV. Counseling and improvement
1. Follow the Company's supplier assessment and performance appraisal procedures.
2. Provide guidance and recommendations for improvement during the audit process.
3. Instruct the suppliers to make improvements.
4. Suppliers who have been disqualified must wait one year (allowing for one year of improvement) before being re-evaluated for potential inclusion as qualified suppliers. Only those assessed as qualified will be added to the list of qualified suppliers.

In 2025, supplier audits and ratings in for major suppliers were completed as follows. Currently, no suppliers have been rated C or lower or require assistance. | |
| | 2025 |
| Number of suppliers | 15 |
| Assessment results: A | 12 |
| B. | 3 |
| C-E | 0 |

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Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
			V. Joint commitments of suppliers
In order to collaborate with suppliers on protecting shareholders’ interests, upholding environmental protection, respecting basic human rights, and ensuring cybersecurity or privacy protection, the Company has entered into procurement quality contracts with its suppliers. These contracts cover areas such as labor and human rights, health and safety, environmental protection, and ethical standards. If there is any violation of the relevant regulations, the Company may suspend transactions with the party.
V. Does the Company prepare a sustainability report or any report of non-financial information based on international reporting standards or guidelines? Are the abovementioned reports supported by the assurance or opinion of a third-party certifier?	V		The Company has formulated the “Code of Practice of Sustainable Development” and set up a “ESG” section on its website. In the future, it will continue to disclose the status of sustainable development, and require suppliers to abide by the norms of social and environmental responsibility in consideration of the interests of stakeholders and treating customers in a fair and reasonable manner.	Compliant
VI. If the Company has the sustainable development best practice principles formulated in accordance with the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies,” please describe the differences between the operation and the principles: None.

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Promotion items	Status of implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary Description
VII. Other information useful to the understanding of the implementation of sustainable development:

I. The Company upholds the philosophy of sustainable operation. It is the Company's most basic social responsibility to provide employees with stable jobs and quality of life, and to provide shareholders with stable returns. In addition, environmental protection issues such as environmental safety and health, energy conservation and carbon reduction, and greening are also fully implemented. In terms of social welfare, there are long-term donations to the charity of Chung Tai Chan Monastery, scholarships to Tamkang University, and industry-academia cooperation with the school to arrange for students to receive practical work experience.

II. Intellectual property management plan:
To strengthen technology and brand competitiveness, the Company continues to promote patent, trademark, and trade secret management pursuant to the "Intellectual Property Rights Management Procedure". Accordingly, the Company makes adjustments to align with the supply chain and information security requirements of major customers to reduce intellectual property risks and protect the Company’s rights and interests.

1. Patent protection measures
The Company's patent strategy centers on "enhancing commercial value". Beyond protecting patents from third-party challenges, the Company prioritizes supporting product differentiation, strengthening technological competitiveness, and improving market access, and continues to maintain its technological advantage through strategic filing and application.

2. Trademark protection measures
The Company actively promotes core brand trademark registration in the global market to ensure exclusive brand rights in major countries and regions, and adjusts trademark strategies in a timely manner based on market dynamics, product development, and regional protection intensity.

3. Trade secret protection
The Company has strengthened trade secret protection both internally and externally: internally, this is achieved through access control, established procedures, and employee confidentiality obligations; externally, through signed non-disclosure agreements and restrictions on the use of shared information, ensuring confidential data is not improperly obtained or disclosed.

Status of implementation

Board of Directors' reporting mechanism | | | | |

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Promotion items	Status of implementation
	Yes	No	Summary Description
The Company regularly reports intellectual property-related matters to the Board of Directors. The most recent report was made to the 5th Board of Directors on December 18, 2025.
2. Intellectual property results as of November 2025
(1) Patents
The Company has accumulated 75 patents, including approximately 55% utility patents, 29% invention patents, and 16% design patents, and continues to pursue application and strategic filing based on its patent strategy.
(2) Trademarks
The Company has accumulated 10 trademarks, covering markets including Taiwan, China, the United States, the European Union, Japan, and South Korea. The Company also adjusts these trades in a dynamic manner based on market demand, shipping locations, headquarters location, and brand strategy.
(3) Trade secret management
a. New recruits and departing employees sign confidentiality agreements to manage confidentiality obligations.
b. Education and training on trade secrets and information security are held regularly.
c. Implement information access permission management and security checks based on job level.
d. Sign confidentiality agreements with supply chain partners to strengthen cross-enterprise confidentiality management.

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Table 1

Climate-related information for TWSE/TPEx-listed companies

1. Implementation of climate-related information

Item	Status of implementation
1. Describe the monitoring and governance of climate-related risks and opportunities by the Board of Directors and the management.	(1) The supervision of the board of directors on climate-related risks and opportunitiesThe governance of climate risks and opportunities, and the annual sustainability risk management issue are reported by the Corporate Sustainability Task Force to the Board of Directors every year, and the Board of Directors shall monitor the implementation effectiveness.
2. Describe how the identified climate risks and opportunities affect the Company's business, strategy and finance (short-, medium-, and long-term).	(2) The management's role in assessing and managing climate-related risks and opportunitiesThe Corporate Sustainability Task Force acts as the unit in charge of climate risk and opportunity governance, and the senior executives of each division carry out risk identification, assessment, and treatment.
3. Describe the financial impact of extreme climate events and transformation actions.	Risks and Opportunities	Climate Change Risks	Risk/ Opportunity Level	Timeframe
	R1	Increase pricing of greenhouse gas emissions	High	Short-/Medium-/Long-term
	R2	Requirements for existing products and services	Low	Short-/Medium-/Long-term
	R3	Litigation risk	Low	Short-/Medium-/Long-term
	R4	Use low-carbon products to replace existing products and services	Low	Short-/Medium-/Long-term
	R5	Failed investments in new technologies	Low	Short-/Medium-/Long-term
	R6	Transformation cost of low-carbon technology	Low	Short-/Medium-/Long-term
	R7	Changes in customer behavior	High	Short-/Medium-/Long-term
	R8	Market Risk	Low	Short-/Medium-/Long-term
	R9	Rising raw material costs	Low	Short-/Medium-/Long-term
	R10	Changes in consumer preferences - industry stigmatization	High	Short-/Medium-/Long-term
	R11	Increasing stakeholder concern and negative feedback	Low	Short-/Medium-/Long-term
	R12	Increased severity of extreme weather	High	Short-/Medium-/Long-term

	events such as typhoons and floods
	R13 Changes in rainfall (water) mode and extreme changes in climate mode	Low	Short-/Medium-/Long-term
	R14 Average temperature rises	Low	Short-/Medium-/Long-term
	R15 Level surface elevation	Low	Short-/Medium-/Long-term
	O1 Use more efficient transportation methods	Low	Short-/Medium-/Long-term
	O2 Use a more efficient production and distribution process	High	Short-/Medium-/Long-term
	O3 Recycling and Reuse	Low	Short-/Medium-/Long-term
	O4 Reduction of water usage and consumption	Low	Short-/Medium-/Long-term
	O5 Use low-carbon energy	Low	Short-/Medium-/Long-term
	O6 Adopt incentive-based policies	Low	Short-/Medium-/Long-term
	O7 Use new technologies	Low	Short-/Medium-/Long-term
	O8 Participate in the carbon trading market	Low	Short-/Medium-/Long-term
Risks and opportunities	Influence and impact on the Company	Response mechanism
---	---	---
Changes in rainfall (water) mode and extreme changes in climate mode	The operation is interrupted due to climate disasters, such as flooding risks, resulting in operation interruption, and increased operating costs.	1. Protective facilities: prepare for the rain and typhoon in the key areas of the plant area, and deploy quickly in response to the sudden flood threat. 2. Soil and water accumulation protection: For areas vulnerable to flooding, the factory site is properly raised to improve the ground's water-proof capability and reduce the possibility of large-scale flooding.
Rising raw material costs	The increase in the cost of raw materials for commodities due to climate change has caused an impact on operations.	1. Multi-ang procurement, early stockpiling.
Increase pricing of greenhouse gas emissions	The general temperature rise caused by climate change. The European Union effectively suppress the excessive emissions of greenhouse gas through carbon tax, and increased the operating cost of the	1. Implement greenhouse gas emission inventory and set reduction targets. 2. R&D of low-carbon products.

	Company.
Changes in customer behavior	As global attention to climate change continues to intensify, downstream customers are increasingly incorporating environmental sustainability performance, carbon emissions management, and product environmental footprints into their key evaluation criteria when making procurement decisions and selecting business partners. QST's major customer base consists primarily of companies in the electronics and high-tech industries. In recent years, these customers have clearly required suppliers to align with their greenhouse gas inventory, carbon reduction targets, and sustainability disclosure requirements, while also expecting suppliers to provide products and manufacturing processes with energy-saving, low-carbon, or environmentally friendly characteristics.	1. The Company promotes greenhouse gas inventory and management in accordance with international standards, such as ISO 14064-1 and the TCFD framework, and is gradually establishing an internal carbon emissions data management system. This is intended to respond to customer and regulatory requirements for carbon information disclosure and to reduce the risk of insufficient disclosure affecting orders and business relationships.
Use more efficient transportation methods	Extreme weather may cause disruptions to raw materials and products, pose a threat to personnel safety, and increase transportation costs.	1. The Company shall adopt the measures of consolidation of order transportation to reduce the number of transportation trips, and thereby achieve carbon reduction and prevent the loss of products and personnel.
To replace existing products and services with low-carbon alternatives.	The product development cost increased.	1. Develop or expand energy-saving products and product carbon footprint.
Switch to a more efficient building	The Company has introduced high-efficiency green building technologies, such as energy-saving equipment, intelligent management system and natural lighting design, to significantly reduce energy consumption and water resource use, further reduce electricity and	1. Assess the possibility of future green building.

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4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	water expenses, and reduce operating costs.
5. If any scenario analysis is adopted to assess the resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and main financial impacts used shall be described.	(1) Climate-related risk management procedures
Step 1:
• Corporate Sustainability Task Force collects background information on climate and environment
• Climate risk and business scope assessment
Step 2:
• Establish a list of climate risk and opportunity items
• Prepare the questionnaire for internal operation impact
Step 3:
• Corporate Sustainability Task Force conducts climate risk opportunity and operational impact analysis
• Determine major risk items
Step 4:
• Establish execution strategies and goals
Step 5:
• Corporate Sustainability Task Force hold meetings to conduct annual rolling reviews on the effectiveness of strategies and goals
(2) The Company's risk management system has incorporated climate risks and opportunities into the operations of all units.
6. If there is a transformation plan in place to manage climate-related risks, specify the content of the plan, and the indicators and targets used to identify and manage physical risks and transformation risks.	Under evaluation and has not been introduced.
7. If internal carbon	Under evaluation and has not been introduced.

pricing is used as a planning tool, the basis for setting the price shall be described.

If climate-related goals are set, the activities covered, the scope of greenhouse gas emissions, the planning period, and the progress of each year shall be described; and using carbon offsets or renewable energy certificates (RECs) to achieve the goals, the source and quantity of carbon reduction credits or the quantity of renewable energy certificates (RECs) to be offset shall be described.
Greenhouse gas inventory and assurance status, as well as reduction targets, strategies and concrete action plans (please fill in 1-1 and 1-2 separately).

Under evaluation and has not been introduced.

Refer to Tables 1-1 and 1-2

1-1 The Company's Greenhouse Gas Inventory and Assurance in the Most Recent Two Years

1-1-1 Greenhouse Gas Inventory Information

Describe the greenhouse gas emission volume (mt CO2e), intensity (mt CO2e/NT$ million), and data coverage for the most recent two years.

Company	Year	Direct emissions (Scope 1)	Indirect emissions (Scope 2)	Other emissions (Scope 3)	Total (mt CO2e)	Intensity (mt CO2e/NT$ million)
The Company	2024	31.6967	309.4533	145.9692	487.1192	0.3463
The Company	2025	27.5746	291.9810	130.5124	450.0680	0.3300

PS: 1. 2024 consolidated operating revenue amounted to NT$1,407 million.

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2025 consolidated operating revenue amounted to NT$1,364 million.

1-1-2 Greenhouse Gas Inventory Information

Describe the status of assurance in the last 2 years up to the date of publication of the annual report, including the scope of assurance, institutions of assurance, criteria of assurance, and opinions of assurance.

1. 2023-2024 Assurance information:

Company	Scope	Assurance Agency	Assurance Opinion
The Company	Scope 1	SGS	Assurance criteria: Assurance completed in accordance with ISO14064-3:2006 and ISO14064-1:2018; assurance opinion is reasonable assurance
The Company	Scope 2	SGS
The Company	Scope 3	SGS	Assurance criteria: Assurance completed in accordance with ISO14064:2006 and ISO14064-1:2018; assurance opinion is limited assurance

The third aspect of the 2025 greenhouse gas inventory is expected to be completed in the fourth quarter of 2026.

1-2 goals, strategies and action plans for greenhouse gas reduction

Describe the greenhouse gas reduction base year and data, reduction goals, strategies, and action plans and achievement of the reduction goals.

The Company upholds the philosophy of sustainable operation, continues to promote various energy-saving and carbon-reduction solutions, and sets short-, medium-, and long-term goals.

Short-term goals:
(1) Lights off during lunch break and adopt office air conditioning temperature control.
(2) Electronic documents to reduce paper consumption.
(3) Plan to adopt energy-saving lamps.
Mid-term goal: Replace company vehicles with EVs
Long-term goal: Through process optimization and carbon credit offsetting, the greenhouse gas emission intensity (greenhouse gas emissions/revenue) in 2030 is expected to be reduced by 10% from the base year of 2023.

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(VI) Enforcement of ethical corporate management, and the differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEX-Listed Companies and reasons:

Assess criteria	Actual governance
	Yes	No	Summary
I. Establishment of integrity policies and solutions
(I) Has the Company formulated ethical corporate management policies approved by the board meeting, and specified the policies and measures? What is the commitment of the board of directors and senior management on actively implementing the policies in the regulations and external documents?
(II) Whether the Company has established a mechanism for evaluating the risk of unethical conduct, regularly analyzes and evaluates the activities in the scope of business with a higher risk of unethical conduct, and on the basis of this, has formulated a plan to prevent unethical conduct, which covers at least the preventive measures for the conduct set out in Paragraph 2 of Article 7 of the “Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies”?	V		(I) The Company has formulated the “Code of Ethical Corporate Management” and the “Code of Ethical Conduct for Directors and Managers,” as approved by the Board of Directors, which specifically set out the matters that all employees of the Company, including directors and managers, should pay attention to in the execution of business.
(II) The Company has established the “Code of Ethical Corporate Management” and “Code of Ethical Conduct for Directors and Managers”, and strengthened relevant preventive measures by means of announcements and declarations of important information, such as “Related Party Transactions”. The “Work Rules” clearly stipulates the punishment mechanism for employees who opportunistically conceal facts and seek undue interests. The Company also encourages	Compliant
Compliant

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Assess criteria	Actual governance
	Yes	No	Summary
(III) Whether the Company has specified operating procedures, conduct guidelines, and disciplinary and complaint systems for violations in the plan to prevent unethical conduct and implemented the plan as well as regularly reviews and amends it?	V		internal and external personnel to report unethical or improper behavior, so as to implement ethical corporate management and ensure the legitimate rights and interests of the whistleblower and the counterparty.
(III) The Company has established the “Ethical Corporate Management Procedures and Behavior Guidelines”, and also conducts training and publicity for employees to fully understand the relevant regulations and disciplinary measures.	Compliant
II. Enforcement of business integrity
(I) Does the company evaluate the ethic records of its counterparty, and explicitly stipulate the terms concerning ethical behaviors in the contract signed with the counterparty?

(II) Does the Company have a unit that specializes in business integrity, and this unit report regularly (at least once a year) to the board of directors on the | V | | (I) Before developing a commercial relationship, the Company evaluates the legality and ethical corporate management policy of the party and ascertain whether the party has a record of involvement in unethical conduct, in order to ensure that the party conducts business in a fair and transparent manner and will not request, offer or take bribes.

(II) The responsible unit is the stock affairs unit, which is responsible for the revision, implementation, interpretation, consulting services, notification of content, recording and filing of the “Code | Compliant |

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Assess criteria	Actual governance			Deviation and causes of deviation from Ethical Corporate Management Best Practice Principles for TWSE/ TPEX Listed Companies
	Yes	No	Summary
ethic management policies and unethical conduct prevention programs and on the monitoring of their implementation?			of Ethical Corporate Management” and “Ethical Corporate Management Procedures and Behavior Guidelines”, and supervision of the implementation, and shall report regularly to the board meeting. The promotion of ethical corporate management in 2025 was reported to the board meeting on December 18, 2025.

The Company has implemented its ethical management policy, and the relevant implementation status for 2025 is as follows:
1. The "Ethical Corporate Management Procedures and Behavior Guidelines" established by the Company explicitly set forth the reporting procedures and provide employees and partners with a formal channel for reporting illegal incidents.
2. Require suppliers or other collaborators to sign a commitment letter agreeing to strict compliance with the anti-corruption policy as a prerequisite for cooperation.
3. During the year (December 2024 - November 2025), all 53 new hires – representing 100% of the new recruits – signed the "Anti-Corruption | Compliant

Compliant |

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Assess criteria	Actual governance
	Yes	No	Summary
(III) Does the Company have the policy to prevent conflict of interest, provide appropriate channels for an explanation, and implement it?	V		Commitment”, pledging not to engage in corruption or bribery and to maintain the confidentiality of business secrets.
4. Out of respect for intellectual property rights, we reiterate the prohibition of unauthorized software installation by employees.
5. There were 0 externally reported complaints and 0 employee complaints in 2025, none of which involved serious violations of ethical management.	Compliant
			(III) The Company has formulated the “Code of Ethical Corporate Management” to prevent conflicts of interest and provide appropriate communication channels. It is also stated in the Company's “Rules of Procedure of Board Meetings” that if a director or the legal person he represents has a specific interest which is likely to harm the interests of the Company, he shall not participate in the discussion and voting, and shall not exercise voting rights on behalf of other directors.

(IV) In order to implement ethical corporate management, the Company does not have external | |
| (IV) Does the Company implement ethical corporate management by establishing an effective | V | | | |

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Assess criteria	Actual governance			Deviation and causes of deviation from Ethical Corporate Management Best Practice Principles for TWSE/ TPEX Listed Companies
	Yes	No	Summary
accounting system and internal control system, and have an internal audit unit to plan and conduct periodic audits on the compliance status of the programs that prevent the unethical conduct according to the unethical conduct risk assessment result, or appoint a CPA to perform the audit?

(V) Does the Company regularly organize internal and external education and training on ethical corporate management? | V | | accounts and secret accounts; in addition, internal auditors regularly check the compliance of the accounting system and internal control system, and prepares an audit report and submits it to the board meeting.

(V) The Company has established the “Code of Ethical Corporate Management” and “Ethical Corporate Management Procedures and Behavior Guidelines”; in addition to posting them on the Company's website, the Company strengthens the publicity for new employees and implements them in its operations. | |
| III. Whistleblowing system

(I) Has the Company set up a specific whistleblower reporting and reward system and a convenient reporting channel, and | V | | (I) Article 15 of the Company’s “Ethical Corporate Management Procedures and Behavior Guidelines” is about the relevant | Compliant |

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Assess criteria	Actual governance			Deviation and causes of deviation from Ethical Corporate Management Best Practice Principles for TWSE/ TPEX Listed Companies
	Yes	No	Summary
designated appropriate personnel to deal with the reported matters?			provisions of the whistle-blowing system. The accusation information shall be reported to the department head if it involves a general employee, and to an independent director if it involves a director or a senior executive.	Compliant
(II) Does the Company establish standard operating procedures for investigating the complaints received and ensuring such complaints are handled confidentially?	V		(II) Article 15 of the Company’s “Ethical Corporate Management Procedures and Behavior Guidelines” is about the relevant provisions of the whistle-blowing system. The acceptance, investigation process and results of the whistleblowing case shall be recorded and preserved, and the identity and content of the whistleblower shall be kept confidential.	Compliant
(III) Whether the Company takes measures to protect whistleblowers from being improperly handled due to reporting?	V		(III) Article 15 of the Company’s “Ethical Corporate Management Procedures and Behavior Guidelines” is about the relevant provisions of the whistle-blowing system. The identity and content of the whistleblower shall be kept confidential, and the whistleblower shall not be treated improperly due to the accusation.	Compliant

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Assess criteria	Actual governance			Deviation and causes of deviation from Ethical Corporate Management Best Practice Principles for TWSE/ TPEX Listed Companies
	Yes	No	Summary
IV. Enhanced information disclosure (I) Does the company disclose the information concerning the contents and achievements of its Code of Ethical Corporate Management on its website as well as on the Market Observation Post System?	V		(I) The Company has formulated policies related to ethical corporate management, and has posted relevant information on ethical corporate management in the Investor Section of the Company's website.	Compliant
V. If the Company has established business integrity policies in accordance with “Ethical Corporate Management Best Practice Principles for TWSE/TPEX-Listed Companies,” please describe its current practices and any deviations from the Best Practice Principles: None.
VI. Other important information that helps to understand the operation status of the Company's ethical corporate management (such as the Company's review and amendment of its Code of Ethical Corporate Management): None.

(VII) Other important information sufficient to enhance the understanding of the operation of corporate governance: The Company continues investing resources to strengthen the operation of corporate governance, and has set up a Corporate Governance Section on the Company's website to describe the corporate governance status. The website also provides relevant rules and measures of the Company. for download and query.

(VIII) Disclosures relating to the execution of internal control system

Statement of Internal Control System: Please refer to the internal control statement announcement on the Market Observation Post System (MOPS) under: Single Company > Corporate Governance > Corporate Bylaws / Internal Control > Internal Control Statement Announcement(URL:https://mops.twse.com.tw/mops/#/web/t06sg20).
If an external CPA reviewed the internal control system, the result of such review must be disclosed: None.

(X) Major resolutions passed in shareholder meetings and board meetings held in the last year and up to the publication date of the annual report: Please refer to page 132 to 141.

(XI) Documented opinions or declarations made by directors or supervisors against board resolutions in the most recent year and up to the publication date of the annual report:

None.

III. Certifying CPAs' fees

Unit: Thousand NTD

Name of accounting firm	Name of CPA	Period of audit service	Audit fees	Non-audit fees	Total	Remarks
Pricewaterhouse Coopers Taiwan	Yan-Na Li
Ya-Hui Cheng	2025	3,010	1,638	4,648	Note 1

Note 1: Non-audit fees include taxation and certification fees of NT$670 thousand, transfer pricing of NT$360 thousand, and subsidiary maintenance and operation fees of NT$608 thousand, totaling NT$1,638 thousand.

(I) Where the Company changes the accounting firm and the audit fees paid for the fiscal year in which such the change took place are lower than those of the previous fiscal year, the amounts of the audit fees before and after the change and the reason(s) shall be disclosed: None.

(II) For any reduction in audit fee by more than 10% compared to the previous year, state the amount, percentage, and reason of such variation: None.

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IV. Information of Change of CPAs:

About the former CPAs

Date of Change	March 04, 2026 (date of board meeting’s resolution)
Reasons and Explanations of Change	In 2026, due to the internal rotation mechanism of the CPA firm appointed by the Company, the certifying CPAs were changed from accountants Yan-Na Li and Ya-Hui Cheng to accountants Yan-Na Li and Hsin-Yi Tsai.
Explain that the appointor or accountant terminates or does not accept the appointment	Counterparty Circumstances		Accountant	Appointor
	Voluntarily terminating the appointment		N/A	N/A
	Not accepting the appointment any more (continual)		N/A	N/A
Comments and Reasons of Audit Report besides no Qualified Opinions verified for the Past Two Fiscal Years	None
No different opinions against issuer	YES		Accounting Policies or Practices
			Disclosure of Financial Report
			Audit Scope or Step
			Others
	None	V
	Description: Not applicable.
Other disclosures (Any matter related to Items 1-4~1-7, Subparagraph 6 of Article 10 of the Code should be disclosed)	None

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About the Succeeding Accountant

Name of accounting firm	PricewaterhouseCoopers Taiwan
Name of CPA	Accountant Hsin-Yi Tsai
Date of Appointment	March 04, 2026
The accounting treatment methods or accounting principles for specific transactions prior to the appointment, and consultation matters and results of opinions that may be issued in the financial report.	None
Written opinion of the successor accountant on the different opinions of the former accountant	None

Reply from the former accountant regarding Items 1 and 2-3, Subparagraph 6 of Article 10 in the Code: None.

V. Any of the Company's Chairman, President, or financial or accounting manager employed by the accounting firm or any of its affiliated company within the most recent year: None.

VI. Details of shares transferred or pledged by directors, supervisors, managers, and shareholders with more than 10% ownership interest in the last year and up to the publication date of the annual report:

Related information can be obtained from the "Market Observation Post System" on the website of the TWSE.(website: https://mops.twse.com.tw/mops/#/web/stapap1_all)

Select "Listed" for Market Type and "Electronic Parts and Components" for Industry Type, then enter the relevant date to search.

VII. Information about the top-ten shareholders who are related parties, spouses or relatives within the second degree of kinship

March 30, 2026
Unit: Share

Name	Self-owned Shares		Shareholding of spouse and underage children		Shareholding under the title of a third party		Names and relationships of top-10 shareholders characterized as related parties defined in Statements of Financial Accounting Standards No. 6.
	Shares	Shareholding percentage	Shares	Shareholding percentage	Shares	Shareholding percentage	Name	Relation
Lien-Hsi Wu	4,381,577	5.33%	1,312,682	1.60%	—	—	Rong-Chun Wu	Brothers
Rong-Chun Wu	4,115,912	5.01%	1,368,054	1.66%	—	—	Lien-Hsi Wu	Brothers
Minchang Investment Co., Ltd. Representative: Yu-Hui Yang	3,563,643	4.33%	—	—	—	—	Lien-Hsi Wu	Spouse
	1,312,682	1.60%	4,381,577	5.33%	—	—
Hsianghehsing Investment Co., Ltd. Representative: Ting-Ting Shih	2,487,201	3.02%	—	—	—	—	Rong-Chun Wu	Spouse
	1,368,054	1.66%	4,115,912	5.01%	—	—
Chun-Wei Wu	2,317,774	2.82%	—	—	—	—	Lien-Hsi Wu	Father and son
Chia-Hsiang Wu	1,681,380	2.04%	—	—	—	—	Rong-Chun Wu	Father and son
Chun-Ping Wu	1,596,936	1.94%	—	—	—	—	Lien-Hsi Wu	Father and daughter
Chun-Bei Wu	1,580,936	1.92%	—	—	—	—	Lien-Hsi Wu	Father and daughter
Sun Ting Investment Co., Ltd. Representative: Rong-Chun Wu	1,571,000	1.91%	—	—	—	—	Ting-Ting Shih	Spouse
	4,115,912	5.01%	1,368,054	1.66%	—	—
Chia-ho Wu	1,465,582	1.78%	—	—	—	—	Rong-Chun Wu	Father and son

VIII. Shares held in the same reinvestment enterprise by the Company, the Company's directors, supervisors, managers, and enterprises directly or indirectly controlled by the Company, and the aggregate shareholding of the parties above

December 31, 2025 Unit: Share

Reinvestment enterprise	Held by the Company		Held by directors, supervisors, managers, and directly or indirectly controlled enterprises		Aggregate ownership
	Shares	Shareholding percentage	Shares	Shareholding percentage	Shares	Shareholding ratio
CHANT SINCERE TECHNOLOGY CO.,LTD.	210,000	100.00%	—	—	210,000	100.00%

AXMOO INVESTMENT CO., LTD.	25,000,000	100.00%	–	–	25,000,000	100.00%
David Electronics Company Ltd.	4,236,042	86.89%	–	–	4,236,042	86.89%
Kunshan Chant Sincere Electronics Ltd.			N/A	100.00%	N/A	100.00%
A&H INTERNATIONAL CO., LTD.	50,500	100.00%	–	–	50,500	100.00%
DAVID ELECTRONICS COMPANY (BVI) LTD.			2,000,339	100.00%	2,000,339	100.00%
Zhuhai David Electronics Co., Ltd.			N/A	100.00%	N/A	100.00%
Dongguan Quanrong Electronics Co., Ltd.			N/A	100.00%	N/A	100.00%
Grand-Tek Technology Co., Ltd.	6,946,166	23.15%	–	–	6,946,166	23.15%
CHANT SINCERE (THAILAND) CO.,LTD	15,000,000	100.00%	–	–	15,000,000	100.00%

Note 1: It is a long-term investment of the Company by the equity method.

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Three. Capital Overview

I. Capital and Shares

(I) Source of capital

Types of shares issued by the Company in the most recent year and as of the printing date of the annual report

Unit: Thousand shares; NT$ thousand

Year/Month	Issuedprice	Authorized ShareCapital		Paid-up capital		Remarks
		Shares	Amount	Shares	Amount	Sources of share capital	Payment inproperties otherthan cash	Others
1986.04	100	250	25,000	250	25,000	Starting share capital	None	-
1997.04	100	500	50,000	500	50,000	Issue of shares NT$25,000 thousand	None	Note 1
1997.10	100	1,000	100,000	1,000	100,000	Issue of shares NT$50,000 thousand	None	Note 2
1998.12	10	19,900	199,000	19,900	199,000	Issue of shares NT$99,000 thousand	None	Notes 3 and4
2000.12	10	32,300	323,000	23,000	230,000	NT$31,000 thousand transferredfrom earnings (including NT$630thousand capital increase transferredfrom employee bonus).	None	Note 5
2001.08	10	32,300	323,000	28,280	282,800	NT$52,800 thousand transferredfrom earnings (including NT$1,050thousand capital increase transferredfrom employee bonus).	None	Note 6
2002.02	10	32,300	323,000	30,000	300,000	Issue of shares NT$17,200 thousand	None	Note 7
2002.07	10	41,100	411,000	34,500	345,000	NT$45,000 thousand transferredfrom earnings (including NT$5,000thousand capital increase transferredfrom employee bonus).	None	Note 8
2003.07	10	48,350	483,500	38,500	385,000	NT$40,000 thousand transferredfrom earnings (including NT$5,500thousand capital increase transferredfrom employee bonus).	None	Note 9
2004.08	10	78,050	780,500	45,925	459,250	NT$74,250 thousand transferredfrom earnings (including NT$8,800thousand capital increase transferredfrom employee bonus).	None	Note 10
2005.05	10	78,050	780,500	48,424	484,241	NT$24,991 thousand transferredfrom convertible corporate bonds.	None	Note 11
2005.07	10	78,050	780,500	48,487	484,870	NT$629 thousand transferred fromconvertible corporate bonds.	None	Note 12
2005.09	10	78,050	780,500	51,183	511,833	NT$26,963 thousand transferredfrom earnings (including NT$4,000thousand capital increase transferredfrom employee bonus).	None	Note 13
2005.11	10	78,050	780,500	54,983	549,834	NT$38,001 thousand transferredfrom convertible corporate bonds.	None	Note 14
2006.02	10	78,050	780,500	55,258	552,583	NT$2,749 thousand transferred fromconvertible corporate bonds.	None	Note 15
2006.09	10	88,050	880,500	67,463	674,630	NT$122,047 thousand transferredfrom earnings (including NT$11,530thousand capital increase transferredfrom employee bonus).	None	Note 16
2007.09	10	88,050	880,500	72,036	720,361	NT$45,731 thousand transferredfrom earnings (including NT$12,000thousand capital increase transferredfrom employee bonus).	None	Note 17
2007.11	10	88,050	880,500	72,044	720,440	NT$79 thousand transferred fromconvertible corporate bonds.	None	Note 18
2008.09	10	88,050	880,500	77,226	772,261	NT$51,821 thousand transferredfrom earnings (including NT$17,000thousand capital increase transferredfrom employee bonus).	None	Note 19
2011.01	10	88,050	880,500	74,283	742,831	Capital reduction of NT$24,030thousand (cancellation of treasury shares)	None	Note 20

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2012.01	10	88,050	880,500	73,249	732,491	Capital reduction of NT$15,740 thousand (cancellation of treasury shares)	None	Note 21
2012.07	10	88,050	880,500	71,839	718,391	Capital reduction of NT$14,100 thousand (cancellation of treasury shares)	None	Note 22
2021.05	10	100,000	1,000,000	72,029	720,290	NT$1,899 thousand transferred from convertible corporate bonds.	None	Note 23
2021.11	10	100,000	1,000,000	72,040	720,402	NT$112 thousand transferred from convertible corporate bonds.	None	Note 24
2022.04	10	100,000	1,000,000	78,546	785,459	NT$65,057 thousand transferred from convertible corporate bonds.	None	Note 25
2022.06	10	100,000	1,000,000	79,373	793,733	NT$8,274 thousand transferred from convertible corporate bonds.	None	Note 26:
2022.09	10	100,000	1,000,000	79,417	794,172	NT$439 thousand transferred from convertible corporate bonds.	None	Note 27
2022.11	10	100,000	1,000,000	79,595	795,949	NT$1,777 thousand transferred from convertible corporate bonds.	None	Note 28
2023.04	10	100,000	1,000,000	79,773	797,726	NT$1,777 thousand transferred from convertible corporate bonds.	None	Note 29
2023.05	10	100,000	1,000,000	80,029	800,286	NT$2,560 thousand transferred from convertible corporate bonds.	None	Note 30
2023.08	10	100,000	1,000,000	80,035	800,346	NT$60 thousand transferred from convertible corporate bonds.	None	Note 31
2023.12	10	100,000	1,000,000	82,236	822,359	NT$22,013 thousand transferred from convertible corporate bonds.	None	Note 32

Note 1: 86 Jian-San-Jia-Zi No. 150419
Note 2: October 20, 1997 Jing-(86)-Shang-Zi No. 120929
Note 3: December 23, 1998 Jing-(87)-Shang-Zi No. 142196
Note 4: The paid-in share capital of 19,900 thousand shares is calculated from the paid-in share capital of 9,900 thousand shares with the original face value of NT$100 per share in the previous period, and the paid-in share capital of 10,000 thousand shares converted according to the par value of NT$10 per share.
Note 5: July 11, 2000 (89) Tai-Cai-Zheng (I) No. 57695
Note 6: July 4, 2001 (90) Tai-Cai-Zheng (I) No. 142952
Note 7: November 12, 2001 (90) Tai-Cai-Zheng (I) No. 168620
Note 8: July 17, 2002 (91) Tai-Cai-Zheng (I) No. 140269
Note 9: July 1, 2003 (92) Tai-Cai-Zheng (I) No. 129183
Note 10: June 29, 2004 Tai-Cai-Zheng (I) No. 0930128672
Note 11: May 18, 2005 Jing-Shou-Zhung-Zi No. 09432130250
Note 12: July 25, 2005 Jing-Shou-Zhung-Zi No. 09432507120
Note 13: July 19, 2005 Jin-Guan-Zheng-Yi-Zi No. 0940127623; September 21, 2005 Jing-Shou-Zhung No. 09401185850
Note 14: November 14, 2005 Jing-Shou-Zhung-Zi No. 09401228570
Note 15: February 14, 2006 Jing-Shou-Zhung-Zi No. 09501025130
Note 16: September 7, 2006 Jing-Shou-Shang-Zi No. 09501203050
Note 17: September 7, 2007 Jing-Shou-Shang-Zi No. 09601232690
Note 18: January 18, 2008 Jing-Shou-Shang-Zi No. 09701015420
Note 19: September 18, 2008 Jing-Shou-Shang-Zi No. 09701239440
Note 20: January 24, 2011 Jing-Shou-Shang-Zi No. 10001017130
Note 21: January 17, 2012 Jing-Shou-Shang-Zi No. 10101011380
Note 22: July 2, 2012 Jing-Shou-Shang-Zi No. 10101122930
Note 23: May 28, 2021 Jing-Shou-Shang-Zi No. 11001089840
Note 24: November 19, 2021 Jing-Shou-Shang-Zi No. 110012100000
Note 25: April 1, 2022 Jing-Shou-Shang-Zi No. 11101052890
Note 26: June 1, 2022 Jing-Shou-Shang-Zi No. 11101085640
Note 27: September 5, 2022 Jing-Shou-Shang-Zi No. 11101158410
Note 28: November 10, 2022 Jing-Shou-Shang-Zi No. 11101216430
Note 29: April 6, 2023 Jing-Shou-Shang-Zi No. 11230052660
Note 30: May 19, 2023 Jing-Shou-Shang-Zi No. 11230084820
Note 31: August 18, 2023 Jing-Shou-Shang-Zi No. 11230159560
Note 32: December 4, 2023 Jing-Shou-Shang-Zi No. 11230216050

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Those who have been approved to issue securities under the aggregate declaration system shall disclose the approved amount and the planned and already issued securities: None.

March 30, 2026 Unit: Thousand shares

Share category	Authorized capital
	Outstanding shares	Unissued shares	Total
Common Stock	82,236
(including 1,500 thousand shares of treasury stock repurchased by the Company)	37,764	120,000	The Company's shares are listed on the Taiwan Stock Exchange.

Note: The Company's shares are listed and there are no restrictions on trading.

(II) List of major shareholders:

List of shareholders with a shareholding ratio of more than 5% or the top ten shareholders

March 30, 2026 Unit: Share

Shares Name of major shareholder	No. of shares held	Shareholding percentage (%)
Lien-Hsi Wu	4,381,577	5.33%
Rong-Chun Wu	4,115,912	5.01%
Min Chang Investment Co., Ltd.	3,563,643	4.33%
Hsianghehsing Investment Co., Ltd.	2,487,201	3.02%
Chun-Wei Wu	2,317,774	2.82%
Chia-Hsiang Wu	1,681,380	2.04%
Chun-Ping Wu	1,596,936	1.94%
Chun-Bei Wu	1,580,936	1.92%
Sun Ting Investment Co., Ltd.	1,571,000	1.91%
Chia-ho Wu	1,465,582	1.78%

Major shareholders of corporate shareholders

March 30, 2026

Name of Institutional Shareholder	Major Shareholders of Institutional Shareholder
Min Chang Investment Co., Ltd.	Lien-Hsi Wu (25.00%), Yu-Hui Yang (23.50%), Chun-Ping Wu (17.50%), Chun-Bei Wu (17.50%), Chun-Wei Wu (16.5%)
Hsianghehsing Investment Co., Ltd.	Rong-Chun Wu (25%), Ting-Ting Shih (23.5%), Chia-Hsiang Wu (18.25%), Chia-Ho Wu (18%), Chia-Ni Wu (15.25%)
Sun Ting Investment Co., Ltd.	Rong-Chun Wu (24.04%); Lien-Hsi Wu (15.76%); Ting-Ting Shih (9.54%); Yu-Hui Yang (10%); Chun-Wei Wu (6.54%); Chia-Hsiang Wu (5.85%); Yu-Mei Chan (3.46%); Wu-Hsiung Chen (3.4%); Po-Tsang Chen (3%), Chia-Ni Wu (5.13%)

(III) Dividend policy and execution status

Dividend policy stated in the Company's Articles of Incorporation

If there is any surplus in the Company's annual accounts, it will be distributed in the following order.

I. Appropriation for taxes.
II. Making up for past losses.
III. Allocating 10% as legal reserve.
IV. Appropriating or reversing the special reserve in accordance with the law or regulations of the authority.
V. For the rest, the board of directors shall formulate an earnings distribution proposal in accordance with the dividend policy in Paragraph 2 of this article, and submit it to the shareholders' meeting.

The Company is in the business growth stage, and the policy of distributing dividends must take into account the Company's current and future investment environment, capital needs, domestic and international competition, capital budget and other factors, as well as the interests of shareholders and the balance between dividends and the Company's long-term financial planning. According to the law, the board meeting shall formulate a distribution proposal and submit it to the shareholders' meeting. The dividends to shareholders shall include 20% to 100% from cash dividends and 0% to 80% from stock dividends.

VI. In order to motivate employees and the management team, the Company shall allocate 2% to 15% of the current pre-tax net profit before the deduction of employees' remuneration and directors' remuneration as employees' remuneration, and no more than 2% as director's remuneration. However, profits must first be taken to offset cumulative losses, if any.

The Company shall allocate at least 60% of the net profit after tax for the distribution of shareholders' dividends.

Unit: In New Taiwan Dollars

Year	2021	2022	2023	2024	2025
Profit after tax	146,434,472	321,972,008	170,152,459	217,917,222	162,361,478
Dividend to shareholders	158,711,608	240,067,836	123,353,861	131,577,451	121,103,861
Distribution ratio	108.38%	74.56%	72.49%	60.37%	74.59%

Resolution on the dividend distribution for the current year

The 2026 earnings distribution proposal of the Company was approved by the Board of Directors on March 04, 2026. In addition to the provision of 10% for legal reserve based on net profits after tax, a total of NT$3,807,035 of retained earnings adjustment for 2025 was allocated in accordance with the laws, and the legal reserve was NT$16,616,851, and cash dividends of NT$121,103,861 were distributed for common shares (cash dividend per share was NT$1.5), accounting for 75% of the net profit after tax in 2025.

When it is expected that there will be major changes in the dividend policy, an explanation should be given: the Company has not expected any major changes in the dividend policy as of the date of publication of the annual report.

(VII) Impact of the proposed stock dividend for the current year on the Company's business performance and earnings per share: The Company has no dividend

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distribution for the year.

(VIII) Employees 'remuneration and directors' and supervisors' remuneration of

Percentage or range of employee's remuneration and directors' and supervisors' remuneration as stated in the Articles of Incorporation:

The Company shall allocate 2% to 15% of the annual pre-tax net profit before the deduction of employees' remuneration and directors' remuneration as employees' remuneration, and no more than 2% as director's remuneration. However, profits must first be taken to offset cumulative losses, if any.

The basis for estimating the amount of remuneration of employees, directors and supervisors in the current period, the basis for calculating the number of shares to be distributed, and the accounting treatment of the discrepancy, if any, between the actual distributed amount and the estimated amount:

If there is a change in the employees' remuneration and directors' and supervisors' remuneration in the profit distribution plan resolved by the shareholders' meeting, the difference shall be treated according to the change in accounting estimates and listed as profit or loss for the following year, without affecting the recognized financial report.

Information on the proposed distribution of employees' remuneration approved by the board meeting:

(1) Amounts of employees' remuneration and directors' and supervisors' remuneration. If there is any discrepancy between the recognized expense amount and the estimated amount for the year, disclose the discrepancy, reasons and treatment:

The Company's 2025 employees' remuneration and directors' remuneration were approved by the board meeting on March 04, 2026. It is proposed to pay the 2025 employees' remuneration for NT$8,813,719 and directors' remuneration for NT$2,092,566; these figures are identical to the figures of employees' remuneration for NT$8,813,719 and directors' remuneration for NT$2,092,566 recognized in the 2025 financial statements.

(2) The amount of employees' remuneration distributed by stock and its proportion to the total amount of net profit after tax and employees' remuneration in individual or individual respective financial reports for the current period:

The profit distribution proposal approved by the board resolution did not contain the distribution of stock dividends to employees, so it is not applicable.

(3) The imputed earnings per share after considering the proposed distribution of employees' remuneration and directors' remuneration: NT$2.00.

The distribution of employees' remuneration and directors' and supervisors' remuneration for 2024:

Distribution Items	The actual number of shares to be allotted as resolved by the general shareholders' meeting	The original number of shares to be allotted as resolved by the board meeting	Cause of difference
I. Employee stock remuneration
1. Number of shares	0	0	—
2. Amount (NT$)	0	0	—

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Distribution Items	The actual number of shares to be allotted as resolved by the general shareholders’ meeting	The original number of shares to be allotted as resolved by the board meeting	Cause of difference
3. Proportion of outstanding shares at the end of 2023 (%)	—	—	—
II. Employees’ cash remuneration (NT$)	11,139,738	11,139,738	—
III. Directors’ remuneration (NT$)	3,396,276	3,396,276	—

(IX) Buyback of company shares by the Company:

March 30, 2026

Repurchase term	7th time
Purpose of Repurchase	Share transfer to employees
Repurchase period	2025/04/14 - 2025/06/13
Repurchase price range	NT$31.50 - 80.00
Type and quantity of shares repurchased	1,500,000 common shares
Amount of shares repurchased	NT$73,277,805
Ratio of repurchased quantity to planned quantity (%)	50%
Quantity of canceled and transferred shares	0 shares
Cumulative number of shares held in the Company	1,500,000 shares
Cumulative number of shares held in the Company as a percentage of the total issued share capital (%)	1.82%

II. Handling of corporate bonds (including oversea corporate bonds):

(I) Handling of corporate bonds

Types of corporate bonds	First Domestic Private Placement of Unsecured Convertible

		Corporate Bonds Bond Code: YC24AA)
Issuing (handling) date		2023.12.29
Face value		One hundred thousand New Taiwan dollars
Issuing and trading place (Note 3)		Domestic
Issued price		Issued at 100% of the bond's face value
Total amount		NTD 695 million
Interest rate		1.5%
Term		4-year term; maturity date: December 29, 2027
Guarantee agency		N/A
Trustee		None
Underwriter		None
Certifying lawyer		None
Certifying accountant		None
Repayment method		Except for the bonds converted by bondholders into the Company's common shares in accordance with Article 11 of the Regulations, they shall be repaid in cash in one lump sum at the bond par value upon maturity, plus any payable interests unpaid.
Outstanding principal		NT$695,000,000
Terms of redemption or prepayment		Bondholders may request the Company to convert this private-placement convertible corporate bond into the Company's ordinary shares in accordance with the Measures at any time from the day after the issuance of the bond for three years (December 30, 2026) till 10 days before the maturity date (December 20, 2027), except during the period of transfer suspension in accordance with the law, and 15 business days before the book-close date of the Company's free share allotment, the book-close date of cash dividends, and the book-close date of capital increase in cash, until the date of distribution of rights, and from the ex-date of capital reduction to the day before the trading of the shares after capital reduction, and Articles 11, 12, 13 and 15 of the Regulations shall apply.
Restrictive terms (Note 4)		None
Name of credit rating agency, rating date, and corporate bond rating results		N/A
Additional rights	Amount of ordinary shares, overseas depositary receipts or other marketable securities converted (exchange or subscribed to) up to the date of publication of the annual report	As of March 30, 2026, 0 shares have been converted

	Issuance and conversion (swap or subscription) method	Please refer to the issuance and conversion method.
Possible dilution of the equity and the impact on existing shareholders' rights and interests from the method of issuance and conversion, exchange or share subscription, and issuance conditions		The amount of this private placement accounts for about 13.45% of the paid-in capital, which is not expected to cause significant damage to shareholders' equity.
Custodian institution for the subject of the exchange		N/A

Note 1: The handling of corporate bonds includes the public offering and private placement of corporate bonds being handled. Publicly offered corporate bonds being handled refer to those that have been validated (approved) by the Commission; privately placed corporate bonds being handled refer to those that have been approved by the board meeting.

Note 2: The number of fields may be adjusted according to the actual number of transactions.

Note 3: Fill in overseas corporate bonds.

Note 4: Such as restrictions on the distribution of cash dividends, external investment or the requirement to maintain a certain proportion of assets.

Note 5: For private placements, mark them in a prominent way.

Note 6: For convertible corporate bonds, exchangeable corporate bonds, aggregately declared corporate bonds or corporate bonds with stock options, the information on the conversion of corporate bonds, exchangeable corporate bonds, aggregately declared corporate bonds or corporate bonds with stock options should be disclosed in a tabular format according to the nature.

III. Issuance of preferred shares: None.

IV. Issuance of offshore depositary receipts: None.

V. Issuance of employee stock option certificate None.

VI. New shares with restricted employee rights: None.

VII. Handling of mergers and acquisitions (including mergers, acquisitions and divisions): None.

VIII. Progress on the planned use of capital:

(I) Plan content

Previous issuances or private placements of marketable securities that have not yet been completed, or have been completed in the past three years and the planned benefits have not yet emerged: None.

(II) Actual implementation status

For the purposes mentioned in the preceding subparagraph, an itemized analysis of their implementation as of the quarter prior to the publication date of the annual report, and a comparison with the original plan: None.

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Four. Operational Overview

I. Business activities

Business scope

(1) Major Contents of Owned Business

① Processing, manufacturing and trading of various electronic components (connectors and electronic wires) and small finished products.
② Import and export business of the aforementioned products.
③ In addition to licensed businesses above, any businesses that are not prohibited or restricted by laws and regulations.

(2) Business proportion

Main products	2025
	Amount (NT$ thousand)	Ratio (%)
Electronic connector	725,727	53%
Cable	601,953	44%
Others	36,361	3%
Total	1,364,041	100%

(3) The Company's current products and services:

① The Company's connectors and cable products are mainly used in four aspects, namely ADAS, Cloud Center, Edge AI and AIoT/IPC. We provide a complete sales plan with a variety of products, and have become the first choice supplier for customers who pursue the quality of international manufacturers with ordinary prices and fast and good services. The Company's main connector (wire) products are as follows:

Classification	Main products	Product application
Cloud Center connector/cable Edge AI	1. USB 3.0
2. USB Type C
3. RJ45
4. SFP
5. QSFP
6. QSFP DD
7. OSFP
8. Mini SAS HD
9. Slimline
10. Oculink
11. MT Ferrule
12. MPO Guide Pin
13. MPO Connector Kit
14. MPO Patch Cord
15. Fiber Array
16. Patch Cord
17. RF Cable	The products are mainly used in high transmission equipment, such as network servers, switches and memories, 8k*4k screens and high-capacity SSDs.

| Robotics | 1. Fakra Conn/Cable
2. Type C Conn/Cable
3. M8/M12 Conn/Cable
4. CAR ETHERNET Conn/Cable
5. SD / CFexpress Conn | The products are mainly used in applications such as robotic vision signal transmission, Ethernet transmission, memory, and other high-speed signal and control applications. |
| --- | --- | --- |
| AIoT/Industrial connector/cable | 1. D-sub
2. CF / CFast / CFexpress
3. IEEE1394
4. SD4.0/7.0/9.0 Push Push
5. DIN 41612
6. Waterproof-M12 Cat 6 PUR cable
7. Waterproof-M12 A,D,X cable
8. USB C Conn. / Cable | The products are mainly used in AIoT items and industrial machinery and equipment to enhance the transmission rate and the function of waterproof and dustproof shielding to ensure the stability of the machine’s and equipment’s circuits. |
| ADAS connector/cable | 1. FAKRA Conn./Cable
2. HSD Conn./Cable
3. Mini FAKRA Conn./Cable
4. Mini FAKRA + MQS Conn./Cable
5. CAR ETHERNET Conn./Cable
6. CAR ETHERNET + MQS Conn./Cable
7. Automotive USB C Conn. / Cable | Automotive connectors are mainly used in automotive ADAS connector products to provide assisted driving functions. |

② Safety & Association Approvals

UL, VDE, HDMI, DP, USB-IF, USB3.0, ISO-9001, ISO-13485 and IATF16949. In order to meet the needs of customers in different regions of the world and let customers use our products with peace of mind, the Company actively joins various associations and meets the safety regulations of various countries, with the aim to become a global and international high-quality supplier.

③ Conformance to environmental trends: (RoHS(2), Halogen Free(HF) and REACH)

In response to the green needs to protect the environment, the Company has introduced lead-free, RoHS and halogen-free processes for the products it manufactures since 2004. At present, all its products can meet the requirements of environmental protection prohibited substances. In order to meet the requirements of future processes, the Company has successively introduced such requirements into the product process.

(4) New products planned to be developed

Combining years of design experience in consumer electronics, computer and communication industry connection applications, with precision manufacturing and high-standard testing capabilities, the Company has successfully selected automotive electronic connectors and communication connectors with high

technical difficulties and great potential for its development for a professional positioning in the market. In order to achieve the goal of sustained high growth and high added value; the research and development of new products will accelerate the integration of computers, automotive electronics and communications to build a high concentration and integrity of technology. The trend of digitization and wireless communication is moving towards precision technologies such as fine pitch, surface mount and high frequency. The Company complies with the requirements of the environmental protection trend, and cooperates with major leading manufacturers of computers and computer peripherals, automotive electronics and communication products to jointly develop new products with future prospects. Our main new products currently under development are as follows:

A. Cloud center connector/cable: QSFP-DD/OSFP
B. Robotics: CFexpress Connector
C. AIoT/Industrial connector/cable: Circular Connector/ Hybrid Connector / RJ10G/One Pair Ethernet
D. ADAS connector/cable: Mini Fakra - Water-Proof/Floating Fakra CAR ETHERNET - Water-Proof Automotive USB C Conn. / Cable

The new automotive connector series of products have to go through a certification period of 2 to 3 years, and have gradually entered the market of major automobile manufacturers in various countries. The Company exclusively provided the first generation of GPU module connector, and in 2017 developed to the second generation of audio and video navigation connector products with large-quantity shipments to customers. In 2018, the Company developed the third generation of products which passed the certification, and entered the supply chain of American automakers with small quantities of shipments. In 2019, the Company entered the supply chain of major global car manufacturers. It is estimated that the Company's revenue will grow by $20\% \sim 40\%$ , and the Company will continue to develop connector products for ADAS applications (FAKRA conn., HSD conn., mini FAKRA, CAR ETHERNET, Automotive USB C Conn. / Cable), and the prospects are promising.

2. Industry Overview

(1) Current and future industry prospects

Connector products generally refer to all the connecting components and their accessories used in the signal and power supply of electronic products, including related wires, sockets and plugs, which belong to the generalized connectors. A connector connects the circuits, modules and systems in electronic products, and is a bridge between all signals; its quality will affect the reliability of current and signal transmission, and also the operation of the entire electronic product. Therefore, high sensitivity must be achieved for the circuit design of connectors. The following table is the classification table of Taiwan's electronic component industry:

Classification Table of Taiwan's Electronic Component Industry

Product classification	Content
Active components	Semiconductors, tubes and displays

Passive components	Resistors, capacitors, inductors/coils, electronic transformers and filters
Mechanism elements	Connectors, printed circuit boards, electronic relays, switches and precision small motors
Functional elements	Sensor/energy converter, recording media, audio parts, battery and power supply

Source: ITIS Program of ITRI Materials Institute

① Current Situation and Trend of Global Connector Industry

A. At present, the global connector industry is highly concentrated, and the top ten in the global connector market are TE Connectivity、Amphenol、Molex、Luxshare-Ict、Aptiv、Foxconn、Yazaki、JAE、Rosenberger、Hirose. Foxconn is the only domestic connector manufacturer that ranks among the top ten in the world. Domestic manufacturers have actively expanded their global business in recent years, and international orders have grown rapidly. Therefore, Taiwan's connector output value has jumped to the fourth largest in the world. China is the world's largest connector consumer market, but its connectors are still mainly low-end and mid-ranged, and its market share of high-end products is low.

B. With the international famous connector manufacturers such as TE and Molex transferring their production bases to China, the level of connector manufacturing in China has rapidly improved. The demand and investment of high-end connectors in the military fields such as aerospace, electronics and ships are constantly increasing, so its connector technology in various application fields has gradually reached the international level. Cloud computing and peripheral equipment, industry, military aviation and other fields have greater demand, which has led to the rapid growth of the high-end connector market. At present, China's demand for high-end products is large and growing rapidly, especially in the fields of automobile, telecommunications and data communication, cloud computing and peripheral equipment, industry and military aviation, which makes the high-end connector market grow rapidly. Mainland Chinese connector manufacturers have formed alliances with Taiwanese factories to join hands to enter Apple's component supply chain, and deepen their supply relationship with Apple's various products, including connectors, acoustic components, antennas, wireless charging, soft boards, headphones, and even Apple's HomePod speaker. Due to the capital advantage of Chinese manufacturers with the integration of the technology of Taiwanese manufacturers, their market share of Apple's various product lines has been expanded. As Taiwanese manufacturers are facing great competitive pressure, we can enter the new blue ocean only by relying on continuous transformation and upgrading and increasing the value-added services. In addition, we must rely on technology and production capacity to cooperate with the mainland manufacturers and take advantage of the market and access advantages of mainland manufacturers to improve competitiveness.

② Current Situation and Trend of Taiwan's Connector Industry

With the demand for multiple innovations in the emerging application market, domestic connector manufacturers are seeking new product lines to develop new applications; in the future, the connector market will require smaller sizes, higher reliability, and stronger wireless performance with certain degree of intelligence;

with high-frequency, high-speed and wireless transmission, correctors will be more accurate, cost lower and be more automated. In 2020, 5G smart devices will begin to popularize, and more applications may be launched. The large data and high transmission requirements of 5G require higher-frequency and higher-speed connectors, and is expected to drive the upgrade and business opportunities of connector products. In the era of the Internet of Things, wireless technology is ubiquitous, and the connection to wireless transmission in many occasions such as industry and automobiles will be a guarantee in the future. With the advent of the AI era, connectors may be able to perform simple intelligent judgment and protection; with the advent of Industry 4.0, advanced machines will become the main force of the connector industry for the precision machining, abrasive tools and CAD of connectors.

(2) Association between upstream, midstream, and downstream industry participants

Figure 1: Introduction to the connector industry chain

① Upstream:

The upstream products of the connector industry are copper alloy metal, electroplating solution, plastic and other materials, which together account for about $60\%$ of the manufacturing cost. Among them, the cost of metal materials accounts for the largest proportion, followed by plastic materials and electroplated materials. Metal materials are used to make connector terminals. In order to prevent electronic signals from being hindered or degraded during the transmission process, the connector terminals are mostly made of copper alloy plates with brass or phosphor bronze as raw materials. In the manufacturing process of the connector, the plastic part is injection-molded from plastic, and the metal part is stamped and formed, and then finished by electroplating. Gold and tin are the most commonly used electroplating materials. Common plastic materials used in connector housings include PBT, PPS, nylon, LCP and resins. Due to the rapid change of electronic products, manufacturers must carefully observe and analyze market demand changes, and timely launch connector products that meet market trends. In addition, manufacturers must enhance inventory management to avoid inventory depreciation losses caused by fluctuations in raw material prices. At present, Taiwanese connector manufacturers have been able to fully grasp the main process of the midstream, but the upstream raw materials and equipment are still mainly in the hands of Japanese companies, and there is a lack of domestic manufacturers investing in research and development in related fields, so the bargaining power of Taiwanese manufacturers over upstream manufacturers is still at a disadvantage.

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② Midstream:

A. The midstream products of the connector industry are connectors and wires. The production steps include product design and mold development in the front section, metal stamping, plastic injection or electroplating and stage assembly in the middle section, and assembly testing in the latter stage. The electroplating process is mostly outsourced due to technology and cost factors. Connectors can be divided into those composed of metal parts, plastic parts or pure metal parts. Metal parts are made by stamping, machining and die-casting. Stamping is usually used to make terminals and housings, and some housings are also manufactured by die-casting. Machining is usually used to manufacture terminals and housings of RF connectors, and plastic parts are mostly injection molded. As electronic products gradually move towards high frequencies, the situation of electromagnetic interference will become more and more difficult, and the design of connectors will become more and more complicated.

B. Taiwanese manufacturers mainly ship products with connectors such as PCB boards, I/O equipment, card, IC sockets, etc. Domestic manufacturers have become the main market suppliers in 3C applications, with computers and peripherals, network communication and consumer electronics as the main application areas. With the stagnation of industrial growth, manufacturers are gradually transforming into green energy, automotive, medical, industrial, 5G, high-speed telecommunications and other products. Today, the world's leading connector manufacturers in the United States and Japan focus on high-end emerging applications. U.S. manufacturers focus on large-voltage and high-current, RF, optical fiber, and high-frequency backplane connectors required for basic communication equipment and new energy systems, and Japanese manufacturers focus on the layout of smart handheld devices, cloud devices, embedded systems, high-precision micro-board connectors, I/O connectors, charging connectors and battery connectors used in electric vehicles.

C. The main customers of Taiwan's connector industry are concentrated in the computer and communications industry. In non-3C industries, including automobiles, military aerospace, transportation and medical industries, the market share is relatively low, mainly because the industrial supply chain is relatively closed and the certification difficulty is high, and it requires long-term management to enter the supply chain. Nowadays, as the 3C market is saturated, the demand is slowing down, and the trend of low-price products affects the profits of manufacturers, domestic manufacturers are also accelerating their development in non-3C fields. At present, Taiwanese manufacturers have gradually shifted to 5G, electric vehicles, cloud, smart home, Internet of Things, industrial 4.0 and other high value-added niche commodities. With the launch of new 3C new products, self-driving cars, robots, drones and artificial intelligence technologies are expected to drive the application of the Internet of Things in automobiles, industry and medical care to become more intelligent, forming new market opportunities and kinetic energy which will drive the output value of connectors to continue growing.

③ Downstream:

A. The application level of connectors is very wide, including automobile, computer, communication, industry, military aerospace, transportation and medical industries. From the perspective of industrial application, the current

proportion of the application in various fields is industry 61%, followed by automobiles 17%, communication 12%, consumer 5%, and others 5%. At present, the connectors in thin and light devices not only need to have high-speed transmission rate, but also need to integrate data, audio and video, and power signals with a large number of pins. The mechanism design makes the plugging and unplugging smoother and waterproof, and can also be exchanged between master and slave, so PCs, panels, mobile phones and other equipment can be used at the same time to meet the dual requirements on thickness and performance of electronic devices of the new generation. BTB connectors have the advantages of reduced noise, stable high-frequency transmission, light weight, and no need for soldering. Therefore, the demand for BTB connectors by smartphones is on the rise, and it is estimated that there will be a considerable room for penetration in the high-end market in the future.

B. As the AIoT trend is forming, new 3C high-frequency products are coming out, and Type-C is now the mainstream of the market. As notebook computers are becoming light-weight and thin, the demand for peripheral dockings has skyrocketed. Therefore, Type-C is required for the advantages of being simpler, lighter, smaller in size, and easier to operate. Microsoft's Surface series are also equipped with Type-C, and its penetration rate in PC, tablet, and smart phone markets continues to increase. Smartphones are more rapidly accepting Type-C, and manufacturers have also launched related peripheral products such as USB PD chargers, flash drives, mobile hard drives, mobile power supplies, cables and headphones in sync with the Type-C boom with upgraded specifications.

(3) Various trends of product development

The connector industry predicts that in 2025, it will focus on the development of USB Type-C connectors, 5G, and self-driving cars. The explanations are as follows:

① Market applications of USB Type-C have entered the mainstream:

A. The European Union continues to promote the unified use of USB Type-C for smartphone cables to achieve environmental benefits. At present, Apple's Iphone 15 and other major brands have fully introduced Type-C design, which will increase the market demands for Type-C products.

B. In the future, fields such as AI, 5G and self-driving cars will continue to drive the expansion needs of the data center and server market. With the evolution from PCIe 4.0 to 6.0, the data transmission rate of enterprise server systems will to 64 Gbps; in the future, data transmission will be performed at high-speed transmission speed. In the future, the demand for PCIe Gen6 and DDR6 socket will gradually emerge. At this stage, Type-C has become the mainstream of the market, and Type-C is also the only supported port in the latest USB4 standard, because USB4 is designed based on the USB Type-C interface. USB4 also increases the transfer rate of the original USB 3.2 from 20 Gbps (Gen 2x2) to 40 Gbps (Gen 3x2), and can be transmitted through a single physical interface to carry out the transmission of various protocols. In response to market demand, the transmission speed supported by USB will continue to increase in the future, so the future connector market will still attract attention.

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② The development of the new energy vehicle industry and driverless or autopilot has led to a surge in demand for automotive connectors:

A. In the new energy vehicle industry, traditional connector equipment is difficult to meet its high current and high voltage requirements, so connector manufacturers have carried out related research and development for high-power connection products of new energy vehicles. For example, TE Connectivity, launched a series of innovative products such as MSD high-voltage maintenance switches, the HVP1000 high-voltage and high-current connector solution (580A), EVC Contactors launched high-voltage contactors, and Tesla is conducting the research and development of the electric vehicle charging technology for the electric current rate of new energy vehicles.

B. With the advent of the intelligent vehicle era, the driverless or autopilot system has received more and more attention. For example, the development of a series of driving systems such as cruise, side-view assistance, automatic emergency braking, automatic parking and charging systems requires more high-quality connectors to optimize car performance and experience, while improving the hardware safety reliability of automotive electronic systems for a safer driving experience. The driverless or autopilot feature is the development trend of the future automobile industry.

Figure 2: Illustration of electric vehicle charging system

③ 5G Communication Technology Has Become the Trend of the Future Technology Industry

A. 5G refers to the 5th-generation mobile network. The first 5G standard was set at the 3GPP conference in June 2018, which is an extension of the existing 4G communication technology. In theory, it can provide the faster and low-latency wireless communication technology. According to the performance standard of IMT-2020, 5G services must be able to support users within the coverage area at a maximum speed of 20 Gbit/s, the transmission speed between users must reach a minimum standard of 1 Gbit/s, and the transmission delay must be less than 1 ms; this means that the 5G speed is 10 to 20 times faster than that of the existing 4G wireless network.

B. The transmission speed will vary according to the application scenario. The biggest improvement is that the delay is only 1 ms (0.001 seconds), which is nearly 50 times shorter than the delay time of the 4G system of 50 ms (0.05 seconds). In the future, the latency of 5G transmission will be very low, and the connection stability will be higher. As the next-generation high-frequency 5G technology gradually moves from the laboratory to commercialization, the wireless communication technology is developing towards higher speed and wider bandwidth. However, the spectrum used in the mid-to-low frequency bands below 6 GHz is already quite crowded, and further subdivisions will cause a serious interference problem. Therefore, high-frequency millimeter wave (mm wave) applications above 30 GHz will become the focus of future development.

(4) Competition

The Company is a professional manufacturer of electronic connectors and electronic connecting wires. Under the strategy of product quality improvement and innovation, its revenue and gross profit have maintained a relatively high level in recent years. At present, the large-scale TWSE and TPEx listed peers in Taiwan include Hon Hai, Cheng Uei Precision, Lotes, Bizlink and U.E. Electronic. Due to the different scales of production and sales, and the competitive advantages and market segmentation of products, the Company has a place in the industrial control, automotive, military, communications and medical industries.

Technology and R&D Overview

(1) Technical level of our business

For the technology sources, the Company's R&D department not only integrates existing resources for independent research and development, but also actively participates in various technical seminars sponsored by the Connector Association and technology transfer alliances managed by the Institute of Technology and the Industrial Technology Research Institute, and also actively joins relevant associations to obtain the standard specifications of the main products help to improve the technical level and service quality of the Company.

(2) Research and development

The electronic products in the market are developing in the directions of being light, thin, short and portable, while non-consumer electronics are developing in the directions of industrial, automotive, medical and waterproof applications. The main product development direction of the Company also corresponds to these trends. Integrating its strong technical research and development and highly stable quality, the Company's future development priorities of research and development work are as follows:

① Short-term plan

A. Actively enhance R&D technologies in connectors, cables, adapters, dongles and readers.
B. Research and develop high-speed and high-frequency transmission related connector products.
C. Research and develop waterproof connectors (USB series、M12、FAKRA、Mini FAKRA、CAR ETHERNET).

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D. Research and develop servers, switches, storage devices and various industrial connectors (Mini SAS, slim SAS, OSFP, PCIE, U.2, SFPDD, QSFP DD and HS BTB).

E. Research and develop various automotive connectors and cables (USB series, Type-C, FAKRA, HSD, Mini FAKRA, CAR ETHERNET (automotive Ethernet), and power connectors).

② Long-term plan

A. Products:

The four main aspects of ADAS, Cloud Center, Edge AI, Robotics and AIOT/IPC.

B. Technology:

(3) Research and development personnel and their education and experience

YearItem	2023		2024		2025		As of March30,2026
	Number	%	Number	%	Number	%	Number	%
University and above	42	95.4%	39	90.7%	42	91.3%	46	92%
Professional college	1	2.3%	3	7%	3	6.5%	3	6%
Below senior and professional high school	1	2.3%	1	2.3%	1	2.2%	1	2%
Total	44	100%	43	100%	46	100%	50	100%

(4) Research and development expenses and technologies or products successfully developed in each of the last five years

① The Company's research and development expenses in each of the last five years

Unit: NT$ thousand

YearItem	2021	2022	2023	2024	2025
Expense	41,201	45,823	52,349	56,528	67,249
Net operating revenue	1,599,466	1,873,163	1,375,343	1,406,550	1,364,041
R&D expenses as a percentage of net operating income (%)	2.58	2.45	3.81	4.02	4.93

Source: Financial statements audited and certified by CPAs

② The technologies or products the Company successfully developed

Year	Technology

2025	1	USB Type C Socket Dual Row (CH1.75)
	2	USB4 40Gbps USB Type-C (TP) Cable (NO U1,C1)
	3	Fakra Mid Mount RA Plug
	4	Fakra Twin RA Plug
	5	Adicora2.0 Type-C Cable
	6	MQS 3 pin - D code
	7	MQS 3 pin - A code
	8	Mini FAKRA 2*2 IP Plug C Code IPEX4L cable
	9	Mini FAKRA 2*2 IP Plug A Code IPEX4L cable
	10	FAKRA PLUG (FRONT SCREW) TO IPEX1 LK Cable
	11	Mini Fakra A 1x1 plug to 1x1 jack _031 cable 1.5m
	12	FAKRA PLUG TO SMB W/COVER 35-degree TRAY RoHS F CODE
	13	FAKRA PLUG TO SMB W/COVER 90-degree TRAY RoHS F CODE
	14	FAKRA PLUG TO SMB W/COVER 180-degree TRAY RoHS F CODE
	15	9.5x1.2 pin pressfit
	16	2.8x0.8 pin pressfit
	17	1.2x0.6 pin pressfit
	18	0.5x0.4 pin pressfit
	19	0.63x0.63 pin pressfit
	20	Mini Fakra B 2X2 jack to jack 174 cable waterproof 1M
	21	Mini Fakra B 2X2 plug to plug 174 cable waterproof 1M
	22	USB Type C Socket Dual Row
	23	MINI FAKRA 1X2 Jack Adapter
	24	MINI FAKRA 1X2 Plug Adapter
	25	QSFP-DD 2X1 + Retention peg
	26	MINI FAKRA A 2x2 JACK TO FAKRA JACK(IP)CABLE
	27	MFA RA 1x2 to MFA RA 1x2_ RG174LL - 600mm
	28	2.54 Pin Header Single Row Entry Side SMT Type (2P Header in 3P Housing) w/o cap
	29	SMB 925mm (TRI) RG174LL SMB(IP) to FAKRA Plug A code Cable
	30	SMB 945mm (MUX) RG174LL SMB(IP) to FAKRA Plug A code Cable
	31	QSFP-DD CAGE
	32	GCAI MINI XT CABLE ASSEMBLY N70 ALOHA
	33	Optical Fabric Connector Mini Fakra Type (LC)
	34	FIBER OPTIC CABLE LC PLUG/JACK DUPLEX 1M
	35	Mini Fakra B 2x2 Jack to Jack 031 Cable
	36	CarEthernet Plug-CH 0.25mm (Reverse)
	37	Mini Fakra AM Plug-1X1 (VE)
	38	Mini Fakra AM Plug-1X2 (VE)
	39	Y LOCK The second set of terminal molds

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	40	FAKRA JACK 6 GHz
	41	343A The third set of terminal molds
	42	MINI FAKRA A 2x2 JACK_RTK-031 COMPONETS
	43	MINI FAKRA A 2x2 JACK FOR 031 ASSEMBLY KITS
	44	FAKRA JACK 6 GHz
	45	FAKRA Str. Plug SMT
	46	MB RTM_MQS3P
	47	MB RTM_nano MQS 6P
	48	Recar SLATE cable
	49	USB 3.1 conn. shell
	50	USB4 40Gbps 240W USB TYPE-C(TP)CABLE(WITH E-MARKED IC)
	51	0.5x0.4 pin bar
	52	Cable Assembly 22AWG 2.54mm Pitch HSG 2P& 2.54mm Pitch HSG 2P to.110 Terminal x2
	53	MFA 2x2 JACK(IP) TO FAKRA JACK(IP)x1+Openx3(RG174LL)
	54	U4 Cable C To C Gen3 1M Externally connected with two electrical wires (test leads).
	55	MFB 1x2 VERTICAL ASSEMBLY
	56	FAKRA STR PLUG SEPARATE
	57	MFB 1x4 VERTICAL ASSEMBLY
	58	HSD RIGHT ANGLE PLUG FOR PCB WITH MQS CONTACTS
	59	HSD VERTICAL PLUG CONNECTOR (H=15.50mm)
	60	ABBA TYPE C CABLE
	61	SMB Jack 15.86mm DIP Type+Spring Washer
62	CX4 AOC Cable + 90D Adapter combo set

Long and short-term business development plans

The Company's goal is to continue to innovate, research and develop new products in order to respond to the rapid change of market demand; the Company's future business development priorities are as follows:

(1) Short and mid-term plans:

①Memory card connection related products:

Since memory cards are widely used in various consumer electronic products, the Company still hopes to rapidly develop various memory card connection related products, closely meet the needs of customers to maintain a leading position in the market, and further cooperate with the CFA Institute to jointly develop interface products.

②RoHS environment friendly products:

In response to global environmental protection and the needs of major international manufacturers, the Company has completed the production and process improvement to introduce all products into a non-polluting environment.

③ Automotive connectors:
Taiwan's market share of automotive connectors in the world is still at a low point. The Company has gradually accumulated experience in OEM orders, and is striving for Asian OEM and technical cooperation with international manufacturers. It has obtained IATS-16949 certification, with semi-automatic and fully automatic manufacturing process, and developed Single End & Different Pair series products in response to market trends to meet the needs of automotive customers.

④ Communication connector:
In recent years, the international communication market has grown exponentially, and the existing connectors can no longer meet the needs for faster speed and wider bandwidth. The Company has developed several products to meet the demand of server customers, and Slimline, OSFP and QSFP DD are the products the Company has developed in recent years, and the Company continues to develop products for 800 Gpbs & 1600 Gpbs.

(2) Long-term plan:
① Ultra-fine pitch connectors:
In view of the application requirements of personalization and mobility, the trend for products to be light, thin and short is still the main trend. The development of ultra-fine pitch connectors is bound to become the mainstream of the market. Therefore, the research and development of the Company is also towards such precision molds and products.

② Optical fiber connectors:
Copper wires are no longer sufficient for future market products, and will be replaced by fiber optic products. The Company has deployed related products and continued the cooperative relationship with existing customers.

③ High-frequency value-added services:
As the market continues to demand larger capacity and faster data transmission, related equipment needs to be upgraded and use high-speed, high-frequency connectors and cables. The Company has the ability of high-frequency simulation and actual measurement, and hopes to help customers solve the high-frequency problem encountered in the initial design, so as to consolidate the cooperative relationship with customers.

④ Research and development of cooling technology:
The server equipment is developing towards 800 and 1600 Gbps; the required external transmission wires are mainly fiber optic wires, and higher power photoelectric conversion modules are used on the wires will inevitably generate more heat. The Company has purchased simulation software for the technical R&D.

II. Market and sales overview
1. Market analysis
(1) Areas where the Company's main products (services) are sold (provided)

Unit: NT$ thousand

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Location\Year	2023		2024		2025
		Sales	%	Sales	%	Sales	%
Domestic sales	Taiwan	409,222	29.75	362,584	25.78	440,654	32.31
Export sales	Mainland China	611,229	44.44	676,059	48.07	422,313	30.96
	U.S.A	50,546	3.68	61,880	4.40	63,108	4.62
	Others	304,346	22.13	306,027	21.75	437,966	32.11
Export subtotal		966,121	70.25	1,043,966	74.22	923,387	67.69
Total		1,375,343	100.00	1,406,550	100.00	1,364,041	100.00

(2) Future market supply, demand and growth

According to the latest statistics from several research institutions (such as Fortune Business Insights and Mordor Intelligence), the global connector market was in a period of steady growth. The global market scale is expected to reach approximately USD 91.3 billion in 2026 and continue to expand at a compound annual growth rate (CAGR) of $6.1\%$ to $7.2\%$ , exceeding USD 130 billion by 2031.

The core driving forces over the next five years will come from three key areas:

AI and data centers: As demand for AI computing power surged, the need for on-board connectors supporting ultra-high-speed transmissions such as 224Gbps doubled.
Electrification of automobiles: The shift toward 800V high-voltage architectures in electric vehicles and the widespread adoption of advanced driver-assistance systems (ADAS) have made automotive connectors the fastest-growing segment (with a CAGR exceeding $8\%$ ).

Communication infrastructure: The deployment of 5G/6G base stations and edge computing has driven significant updates and replacements of high-frequency RF and fiber optic connectors.

(3) Competitive advantage

①Complete product line, dedicated to the market management of niche products The Company currently has thousands of products, and their application fields cover industrial, medical, military, and electronic communications. The breadth (diversification) and depth (complete specifications) of products meet the needs of customers for their one-stop purchase. In recent years, the Company has actively entered the automotive and waterproof fields of the connector market. With the digital development of personal portable consumer electronic products, the demand for information access anytime and anywhere has stimulated the light, thin, short, and small features. As the small memory card market grows, the Company fully grasps the pulse of market demand for products, effectively masters the niche market, and applies overall strategies such as marketing planning, production layout and resource allocation to maximize the benefits of the overall product mix. Therefore, the Company's average product gross profit margin can remain stable.

②The Company masters the key process, integrate the supply system of third-party manufacturers, and have a production system that can quickly respond to market changes and demands. The electronic connector industry is quite mature in terms of production and supply, and the competition is fierce. Therefore, in terms of production layout, the Company takes the capital investment with the best

economic benefits for maximum production benefits as the main strategic focus, in order to master the core key processes of terminal iron shell stamping and plastic injection molding, effectively integrate the support system of third-party manufacturers, build a cost and quality competitive advantage and respond quickly and flexibly to market changes, so as to establish a production system that meets customer needs. At present, the Xizhi factory is designated to key processes such as mold design and development, terminal stamping, plastic injection molding and (semi) automation, and focuses on the production of high value-added products. In addition, in response to the global strategic layout, the Company set up wholly-owned manufacturing plants in Dongguan, mainland China through overseas subsidiaries. In addition to providing customer service nearby, they engage in the production of low-end and mid-level products to reduce production costs. In addition, in the production planning of core technologies and niche products, the Company uses professional teams and management systems of R&D, quality assurance and procurement, integrates the support system for third-party manufacturers, cultivates long-term cooperation and tacit understanding, in order to give full play to production efficiency in terms of capacity flexibility, quality and cost competition. Therefore, the Company has an advantage over its peers in terms of equipment and asset utilization efficiency.

③ Strengthen the R&D department and carry out customer-oriented product development

In the technology industry, the R&D department has strong economic benefits and a high level of technology. Innovation, technology application and product design are the most important tasks of the R&D department. The ability of the R&D department is regarded as an important resource for the success or failure of an enterprise. Therefore, the Company has comprehensively improved the technology and equipment of its own R&D department. At present, it not only has advanced software and technology related to computer-aided engineering such as Moldex3D, Abaqus, 2D and 3D Design, but will also further move towards automation technology in the future to develop and produce automation equipment, while strengthening the communication between technical R&D personnel and market research, sales and production departments, in order to focus the energy of innovation on "customer-orientation".

④ Build a complete quality assurance system to ensure product quality

The proportion of the Company's export sales is more than 50%, and the main markets are the United States, South Korea, Europe and Japan. Based on the insistence on quality and maintenance of stable customer relationships, the Company has very strict quality requirements, and has passed ISO 9001, ISO 13485, ISO 14001 and IATF16949 certification in order to build a complete quality assurance system, improve the management of product quality. The Company has successively invested in the purchase of testing equipment and the development of automatic optical inspection (AOI) equipment, and moves towards total quality management (TQM). Going forward, the Company will continue to improve product yield and maintain a good reputation and image. With the Company's years of pragmatic management efforts, its products have been well received by domestic and foreign manufacturers and customers; this is an important niche for the Company to stand out in the industry.

(4) Favorable and unfavorable factors of the development prospect and

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countermeasures

① Favorable factors

A. In terms of industry development trends, electronic connectors and electronic connecting wires are important components for the connection and transmission of electronic signals. Therefore, with the recovery of the global information and communication market, the market demand for electronic components will grow, and the connector industry has considerable room for growth in the future.

B. In terms of business strategy, the Company adopts a cross-strait division of labor, with the mainland production bases specializing in the production of low- and mid-end products, while the base in Taiwan being responsible for the production, sales, research and development of high-end products and capital planning, in order to effectively use organizational resources to maximize benefits.

C. In terms of product competitiveness, the Company has a complete product line with more than 5,000 products at the moment, covering a wide range of applications. The breadth (diversification) and depth (complete specifications) of products meet the needs of customers for their one-stop purchase.

② Unfavorable factors

A. Due to the minimized profits in the electronics industry and the trend that customers are unwilling to prepare materials, the difficulty of production control is bound to increase; the demand for delivery time is getting shorter, and the unit price requirement is becoming more stringent, bringing greater pressure to manufacturers.

B. The labor productivity in mainland China is generally insufficient, and the labor cost is also on the rise, increasing the Company's operating costs.

C. With the rise of China's red supply chain, the four major monopolies of the United States, Japan, South Korea and Taiwan is beginning to loosen. For Taiwanese connector manufacturers and other global connector manufacturers, countermeasures must be developed to combat this red tide.

③ Countermeasures

A. Expand the scale of the production base in Taiwan, establish a high-end automated assembly line (including automatic optical inspection (AOI) equipment), win high-end customers with quality and technology and maintain a higher gross profit margin.

B. To reduce production costs, the Company has set up wholly-owned factories in Dongguan, mainland China through overseas subsidiaries to engage in manufacturing. In addition, through the integration of third-party suppliers, the Company adopts the outsourcing production method to increase production flexibility, so as to alleviate the impact of insufficient domestic labor productivity and rising costs. Continuously design semi-automatic and automatic assembly lines to reduce the cost of quality problems caused by constant changes in operators.

C. Cooperate with mainland manufacturers with technology and production capacity, and use the market and access advantages of mainland manufacturers to improve competitiveness and resist the red tide. In addition, the Company is committed to the development of markets outside China (Americas and Europe) to cope with the impact of the red supply chain.

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Important applications and production processes of main products

(1) Important applications or functions of main products:

Main products	Important applications and functions
Electronic connectors	Electrical connectors refer to all connecting components and accessories used in electronic signals and power supply. Generalized connectors also include sockets, plugs and cable assemblies. From the point of view of electronic item purchasing, the connector is a part of the interconnection that can be clutched or replaced, in other words, it is a bridge for all signals, so the performance of the connector will affect the operation quality of the entire electronic system.
Electric cable	1. Signal line: It is suitable for electronic signal transmission between the main computer system and its peripheral products, communication products, industrial control and home appliances.
2. Power cord: It is suitable for power transmission of the main computer system and its peripheral products, communication products, industrial control and home appliances.
Small-size finished goods	Peripherals, card readers and adapters for smartphones, tablet computers, industrial computers, notebook computers, desktop computers, etc.

(2) Production process of main products

①Small-size finished products of electronic connector:
②Electric cable

Supply of major raw materials

Item	Suppliers	Supply status
Plastic	Chang Yu Precision and Horne Fuu Precision	Stable
Terminals	Autosplice and Wu Ching Precision	Stable
Wire	Sinosyncs and Long Chi	Stable

Names of customers representing more than $10\%$ of total purchases (sales) in either of the previous two years, the amounts and percentages of purchase (sales); describe the reasons for any increase or decrease.

(1) List of major vendors in the last two years:

No supplier that supplied $10\%$ or more of the Company's total purchases in the last 2 years.

(2) List of major purchasing customers in the last two years
Unit: NT$ thousand

	2024				2025
Item	Name	Amount	As a percentage of net sales for the year (%)	Relationship with the Issuer	Name	Amount	As a percentage of net sales for the year (%)	Relationship with the Issuer
1	A	483,824	34.40	Non-related party	A	230,155	16.87	Non-related party
	Others (Note 1)	922,726	65.60	—	Others (Note 1)	1,133,886	83.13	—
	Net sales	1,406,550	100.00	—	Net sales	1,364,041	100.00	—

Note 1: The ratio of the sale amount to the net sale amount of the whole year is less than 10%.
Reasons for changes: The changes are mainly due to changes in market trends and product demand.
Note 2: As of the publication date of the annual report, if the most recent financial information of a listed or OTC company is audited and certified or reviewed by a certified public accountant, please also disclose it.

III. Employee size, average years of service, average age, and education distribution in the last 2 years and up to the publication date of the annual report
Unit: People

Year		2024	2025	As of March 30, 2026
Employee count	Indirect employees	129	132	134
	Direct employees	49	52	53
	Total	178	184	187
Average age		41	41	42
Average years of service		9	8.86	8.85
Academic background	Doctoral Degree	0.56%	0.54%	0.53%
	Masters Degree	3.93%	3.24%	3.21%
	University	73.60%	70.27%	70.59%
	Senior high school	19.10%	22.70%	22.46%
	Below senior high school	2.81%	3.25%	3.21%

IV. Environmental protection expenditure

Losses suffered due to environmental pollution (including compensation and violations of environmental protection laws and regulations according to the results of environmental protection inspection) in the most recent year and up to the printing date of the annual report; disclose the estimated amount that may occur at present and in the future and countermeasures; if it cannot be reasonably estimated, explain the reason why it cannot be reasonably estimated

The Company mainly produces and assembles connectors and connecting lines. The assembly process does not produce harmful substances, waste water and waste gas that pollute the environment. The Company has appointed a nationally certified recycling company for the treatment of the remaining materials from production, therefore, the Company will not produce any major pollution within its business scope.
Response measures for the EU RoHS: The Company has fully introduced the RoHS process, completed the ISO14001 environmental protection certification, and established product testing and incoming inspection operations in accordance with relevant specifications.

V. Labor-management relations

The Company's employee welfare measures, further education, training, retirement system and their implementation, as well as the agreement between labor and management and various employee right and interest protection measures:

(1) Employee welfare measures and implementation

The Company has always cared about and attached great importance to the welfare of employees. In addition to appropriating welfare funds on a monthly basis in accordance with regulations, the Company has established an employee welfare committee, and selected welfare committee members to formulate annual plans to facilitate the handling of various welfare activities; in addition, the

Company handles employee group insurance and employee on-the-job training, and distributes employee dividends, and manages an employee stock ownership trust in order to enrich employee benefits.

(2) Staff further education and training

Talent is one of the important assets of an enterprise. In order to create and maintain the best human resource quality, the Company regularly invests in employee training every year, and plans complete training courses and multiple learning channels according to the job function. In the future, the Company will continue to adhere to the concept of lifelong learning and provide employees with good capability development.

2025 Refresher Course Summary
Unit	Course name	Training expenses (NT$)
Investment Management Department	Training courses for directors and supervisors	54,000
Board of Directors	Legal related courses	9,000
Board of Directors	Auditing related courses	6,000
Board of Directors	Auditing related courses	9,000
Administration Department	Courses for corporate governance supervisors	12,000
Administration Department	Thai Conversation - Beginner Level	3,800
Administration Department	2025 Internal Compliance Guidance on Insider Equity Transactions	0
Administration Department	2025 ESG Summit	0
Administration Department	2025 Quanta Supplier Conference - Sustainable Supply Chain	0
Administration Department	2025 Q4 Corporate Governance and Sustainability Disclosure Seminar	0
Administration Department	2025 Business Promotion Meeting for Listed Companies	0
Administration Department	2025 ESG Assessment Promotion Meeting	0
Finance Department	Financial management related courses	4,500
Finance Department	Financial management related courses	4,500
Accounting Department	Continuing Education Course for Accounting Supervisors	16,000
Accounting Department	Accounting professional courses	10,000
Management Department	On-the-job Training for First-aid Personnel	840
Management	2025 Fire Safety Education and Advocacy	0

Department
Foreign Business Department	English courses	150,000
High Frequency Section	High-speed connector signal integrity design and analysis	30,000
Quality Assurance Department	VDA maturity assurance for new parts - MLA	0
Quality Assurance Department	ISO/IEC17025 Laboratory Management System	0
Quality Assurance Department	ISO/IEC17025:2017 Laboratory Management System	5,700
Quality Assurance Department	ISO 14001:2015	5,700
Quality Assurance Department	ISO 14064-1:2018 Training for Organizational GHG Internal Auditors	10,000
Quality Assurance Department	IECQ QC080000:2017	0
Quality Assurance Department	IATF 16949:2016 Clause Interpretation Training Course	11,250
Quality Assurance Department	IATF 16949:2016 Lead Auditor Training Course	9,440
Quality Assurance Department	VDA Chief Auditor	4,480
Quality Assurance Department	Continuing Education of Radiation Protection	650
Quality Assurance Department	Keyence image measurement	4,500
Quality Assurance Department	Reliability Engineer	0
Quality Assurance Department	Education and Training on EU ROHS and Halogen-free Products	0
Xizhi factory	Thai Conversation - Beginner Level	3,800
Xizhi factory	Industry AI Talent Seed Three-Day Camp	0
Xizhi factory	On-the-job Training for First-aid Personnel	840

R&D Department	IATF 6 Core Tools	23,750
R&D Department	ABAQUS Training Courses	0

The relevant certificates and licenses designated by the competent authority which are received by the Company's personnel related to financial information transparency are as follows:

International Internal Auditor Certificate: None.
Basic Competency Test of Corporate Internal Control organized by the Securities and Futures Institute: 2 audit staff.
Internal Auditor of the Republic of China: None.
Accountant of the Republic of China: None.

(3) Retirement system and implementation status

In accordance with the provisions of the Labor Standards Act, the Company has formulated the "Employee Retirement Measures", which clearly stipulates that employees can retire and receive pensions in accordance with the regulations. In addition, a special account for labor pension has been established in accordance with the law. In the old system, the pension provision is set aside on a monthly basis, and deposited in the special account at the entrusted financial institution. In the new system, 6% is set aside on a monthly basis, and deposited in the individual pension account.

(4) Agreements between labor and management and various measures to safeguard the rights and interests of employees

The Company has formulated personnel management rules and personnel operating standards, and has a complete plan for employee recruitment, promotion, retirement and pensions. As a common standard for the Company and employees, labor-management meetings are held regularly to enhance the exchange of views between labor and management. Therefore, labor-management relations are harmonious without any disputes.

Losses suffered due to environmental pollution (including compensation and violations of environmental protection laws and regulations according to the results of environmental protection inspection) in the most recent year and up to the printing date of the annual report; disclose the estimated amount that may occur at present and in the future and countermeasures; if it cannot be reasonably estimated, explain the reason why it cannot be reasonably estimated.

(1) The Company has no losses due to labor disputes in the most recent year and up to the printing date of the annual report.
(2) The Company abides by the Labor Standards Act and relevant laws and regulations, and the labor and management have established a good interactive relationship, so it is predicted that there will be no losses due to labor disputes in the future.

VI. Infocomm Security Management:

(I) Describe the infocomm security risk management structure, infocomm security policy, specific management scheme and resources invested in infocomm security management.

Risk Management Structure of Information and Communication Security With reference to the COSO framework, the Company measures elements such

as the control environment, risk assessment, control activities, and supervision of information and communication, in order to establish the corporate operation and management mechanism.

Information and Cybersecurity Policy

(1) Policies and procedures: Establish the Company’s information security management system to regulate employees’ operational conduct.
(2) Use of technology: Implement information security management equipment to enforce cybersecurity management measures.
(3) Personnel training: Conduct information security education and training to enhance employees’ cybersecurity awareness.

Information security control measures

(1) The Company regularly takes inventory of information assets and personal data, conducts risk management based on information security and personal data risk assessment, and implements various control measures.
(2) Outsourced manufacturers must sign a confidentiality agreement to ensure that those who use the Company's information services or perform related information services have the responsibility and obligation to protect the Company's information assets they obtain or use, so as to prevent unauthorized access, tampering, vandalism or improper disclosure.
(3) Important information systems or equipment have been appropriately backed up or mutually assisted or a monitoring mechanism is in place, and drills are regularly carried out to maintain their availability.
(4) Anti-virus software is installed on all personal computers, virus patterns are regularly checked and updated, and the use of unauthorized software is prohibited.
(5) The employees are required to be responsible for the safekeeping and use of the account, password and authority level, and regularly change the password.
(6) A business continuity management mechanism is established and regularly tested and drilled to maintain its applicability. Regular internal audits are carried out every year to ensure the effectiveness of the information security and personal information protection management system.
(7) Regular internal audits are carried out every year to ensure the effectiveness of the information security and personal information protection management system.

Resources Invested in Information and Cybersecurity Management

(1) Dedicated personnel: The Information Department consists of four staff members, with the head of the Information Department serving as the designated supervisor responsible for information security.
(2) Education and training: For new hires, HR provides information security awareness training and requires the signing of an information security commitment letter. In addition, the Company conducts information security awareness campaigns and social engineering drills on the intranet from time to time, and holds one information security training session annually.
(3) Hardware and network maintenance: Annual maintenance and warranty renewals for hardware (servers) and network equipment are regularly reviewed and approved.
(4) Anti-virus protection: Anti-virus software is maintained and updated

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annually. The Company's personal computers and servers are protected by a comprehensive anti-virus defense mechanism.

(5) Audit results: At present, there have been no material deficiencies identified in the relevant information security audits.
(6) Customers and suppliers: There have been no material information security incidents, including cases involving loss or leakage of customer data or violations affecting customers or suppliers.

(II) Losses arising from major infocomm security incidents in the last year up to the publication date of the annual report, possible impact and countermeasures; state the reasons if the losses can not be reasonably estimated.

VII. Important Contracts

Supply and sales, technical cooperation and long-term loan contracts that are still in force and will expire in the year, and important contracts that can affect the rights and interests of investors:

Nature of contract	Contract counterparty	Contract period	Contract content	Restrictive clauses
sale contract	Company A	From November 8, 2011 to November 7, 2012 (renewed annually)	Procurement Contract	Confidentiality agreement already signed
sale contract	Company B	From February 21, 2019 to February 20, 2020 (renewed annually)	Procurement Contract	Confidentiality agreement already signed

Five. Review and Analysis of the financial status and financial performance, and risk management

I. Financial status: The main reasons for the major changes in assets, liabilities and shareholders' equity in the last two years and their impact; if the impact is significant, explain the future response plan.

Unit: NT$ thousand

| Year
Item | 2025 | 2024 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | % |
| Current assets | 2,110,909 | 2,023,957 | 86,952 | 4.30% |
| Property, plant and equipment | 786,088 | 737,764 | 48,324 | 6.55% |
| Intangible assets | 6,877 | 3,785 | 3,092 | 81.69% |
| Other assets | 847,477 | 1,077,013 | (229,536) | -21.31% |
| Total assets | 3,751,351 | 3,842,519 | (91,168) | -2.37% |
| Current liabilities | 355,156 | 401,034 | (45,878) | -11.44% |
| Non-current liabilities | 787,990 | 787,197 | 793 | 0.10% |
| Total liabilities | 1,143,146 | 1,188,231 | (45,085) | -3.79% |
| Share capital | 822,359 | 822,359 | 0 | 0 |
| Capital reserve | 483,902 | 479,767 | 4,135 | 0.86% |
| Retained earnings | 1,300,684 | 1,266,093 | 34,591 | 2.73% |
| Other equity interest | 64,013 | 75,837 | (11,824) | -15.59% |
| Treasury Stock | (73,220) | 0 | (73,220) | 0 |
| Non-controlling interests | 10,467 | 10,232 | 235 | 2.30% |
| Total shareholders equity | 2,608,205 | 2,654,288 | (46,083) | -1.74% |
| Description: (only the analysis and description of items with an increase or decrease of more than 20%)
1. Increase in intangible assets: Due to the increase in computer software.
2. decrease in other assets: Due to the decrease in the period-end evaluation of financial assets measured at fair value through other comprehensive income. | | | | |

Note: All financial information from 2025 to 2024 has been audited and certified by CPAs.

II. Financial Performance:

Unit: NT$ thousand

| Year
Item | 2025 | 2024 | Amount
increase
(decrease) | Variation % |
| --- | --- | --- | --- | --- |
| | Amount | Amount | | |
| Net operating
revenue | 1,364,041 | 1,406,550 | (42,509) | -3.02% |
| Operating costs | (819,578) | (820,108) | 530 | -0.06% |
| Gross profit | 544,463 | 586,442 | (41,979) | -7.16% |
| Operating
expenses | (377,753) | (428,823) | 51,070 | -11.91% |
| Operating profit | 166,710 | 157,619 | 9,091 | 5.77% |
| Total
non-operating
income and
expenses | 45,388 | 113,882 | (68,494) | -60.14% |
| Net profit before
tax from
continuing
operations | 212,098 | 271,501 | (59,403) | -21.88% |
| Income tax | (49,569) | (53,607) | 4,038 | -7.53% |
| Net profit after
tax from
continuing
operations | 162,529 | 217,894 | (55,365) | -25.41% |

Note: All financial information from 2025 to 2024 has been audited and certified by CPAs.

Main reasons for major changes and their impact, and description of future response plans:

(Only the analysis and description of items with an increase or decrease of more than 20%)

Decrease in non-operating income and expenditure: Due to increased foreign exchange losses.
Due to the changes above, the profit before tax and net profit after tax decreased.

(I) Sales forecast and basis: Not applicable.
(II) Possible financial impact and response plan: There is no major impact.

III. Cash flow: Analysis and explanation of the cash flow changes in the most recent year, improvement plan for insufficient liquidity and analysis of cash flow in the coming year.

(I) Liquidity analysis in the most recent year

Unit: NT$ thousand

Cash balance at the beginning of the period	Net cash flow from operating activities for the year	Cash inflow (outflow) for the full year	Cash balance (shortfall)	Financing of cash deficits
				Investment plan	Financial plan
792,417	296,944	(151,782)	937,579	—	—
Analysis of cash flow change in the current year 1. Operating activities: The net cash inflow from operating activities in 2025 was NT$296,944 thousand, an increase of NT$51,905 thousand compared with that in 2024, mainly due to a increase in the balance of accounts payable and decrease in income tax paid for the current period in 2024. 2. Investment activities: The net cash outflow from investment activities was NT$224,285 thousand, primarily due to the acquisition of financial assets measured at fair value through other comprehensive income amounting to NT$305,143 thousand. 3. Financing activities: The net cash outflow from financing activities was NT$224,734 thousand, mainly due to the distribution of cash dividends of NT$131,577 thousand.

(II) Improvement plan and liquidity analysis for insufficient liquidity

YearItem	December 31,2025	December 31,2024	Increase(Decrease) Ratio(%)
Cash flow ratio (%)	83.61	61.10	36.84
Cash flow adequacy ratio (%)	97.09	85.09	14.10
Cash reinvestment ratio (%)	4.63	3.40	36.18
Explanation of the ratio of change: (only the analysis and description of items with an increase or decrease of more than 20%)1.Increase in cash flow ratio: Due to the decrease in current liabilities.2. Increase in the cash reinvestment ratio: Due to the decrease in long-term investments.

Note: The Company has close contacts with domestic banks and has established a good credit for financing. Therefore, the Company has no worry of insufficient financial liquidity or shortage of funds under reasonable capital needs.

(III) Liquidity analysis for the next year: Not applicable.

IV. Material capital expenditures in the last year and impacts on the financial position and business performance: None.

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

All of the Company's reinvestments are long-term strategic investments; in 2025, the Company made a profit of NT$27,112 thousand from the equity method on the reinvestments on a consolidated basis. In the future, the Company will continue based on principles of long-term strategic investments to prudently evaluate the reinvestment plans.

VI. Evaluation shall be performed on risk management issues in the last year and up to the publication date of the annual report

(I) Impact of interest rate, exchange rate and inflation on the Company's income and future countermeasures:

Unit: NT$ thousand

Item	2025	2024
Net revenues	1,364,041	1,406,550
Interest expense	(17,362)	(17,394)
Interest expense/net revenue	(1.27%)	(1.24%)
Net foreign exchange gain (loss)	(25,609)	18,384
Foreign exchange gains (losses)/net revenue	(1.88%)	1.31%

(1) Interest rate change:

Profits and losses arising from interest rate changes in recent years accounted for a small proportion of the Company's net revenue, so changes in market interest rates have little impact on the Company; besides, due to the current favorable environment in which market financing costs are still low, future interest rates will depend on the global economy. The Company has no long-term or short-term borrowings, and due to the sound operation and financial status, the Company should be able to obtain better loan conditions from banks when negotiating bank credit lines, and has considerable flexibility in its capital arrangement. If the Company expands its factories, adds fixed assets or has working capital needs in the future, according to the overall financial environment and the level of its own funds, the Company will choose to use its own funds, raise funds through issuing securities, or borrow money from banks to cover its capital needs. Therefore, changes in market interest rates have little impact on the Company.

(2) Exchange rate change:

The Company's exchange loss in 2025 was NT$25,609 thousand, accounting for (1.88%) of the current net operating revenues. In order to avoid the risk of exchange rate fluctuations, the Company plans to take the following measures:

A. Open a foreign exchange deposit account at a bank, and the inward payment due to sales of goods will be converted into New Taiwan dollars and deposited into the deposit account according to the actual capital demand and exchange rate changes; regarding payments for purchases, based on changes in exchange rates, imported raw materials will be considered to be paid with the foreign currency earned from export to reduce the impact of exchange rate changes.

B. For export quotations, costs will be timely reflected and selling prices adjusted with exchange rate fluctuations taken into account.

C. The financial unit maintains close contact with the foreign exchange departments of various financial institutions to fully grasp the international exchange rate trends and changes in real time, and determine the foreign currency holding positions according to the actual capital needs and exchange rates, so as to reduce operational risks.

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(3) Inflation:

The Company pays close attention to the impact of the price index on the Company's procurement costs, and adjusts strategies in a timely manner to avoid the risk of inflation.

(II) Policies on high-risk and high-leverage investments, loans to external parties, endorsements/guarantees, and derivative trading, the main causes of profit or loss incurred and future countermeasures:

Based on the principle of prudence and pragmatic business philosophy, as of the date of publication of the annual report, the Company has not engaged in high-risk, high-leverage investments and transactions other than focusing on its core business. However, loans to external parties and endorsements/guarantees have been implemented in accordance with relevant policies. In addition to regular tracking and monthly control, the Company handles the operations in compliance with existing "Procedures for the Acquisition or Disposal of Assets", "Procedures for Extension of Loans to Others" and "Procedures for Endorsements/Guarantees".

(III) Future research and development plans and projected expenses:

The Company is a professional manufacturer of electronic parts. In response to the development trend of electronic products in the market towards light, thin and short, the Company will develop products in this direction in the future, and will continue developing products that meet market demand in line with the Company's technical capabilities and in pursuit of stable quality goals. The Company's 2026 R&D plan and the estimated R&D expenses are as follows.

Unit: NT$ thousand

New product	Expected R&D expenses
MINI FAKRA A	16,430
MINI FAKRA B	13,140
CAR EtherNet	11,250
FAKRA	1,950
ATCT TYPE-C	6,900

(IV) The impact of important domestic and foreign policy and legal changes on the company's financial status in the most recent year and countermeasures:

The Company pays constant attention to changes in key policies and laws at home and abroad, and evaluates the impact on the Company. Changes in key policies and laws in the most recent year and up to the printing date of the annual report did not have any material impact on the Company's financial status.

(V) The impact of technological changes (including infocomm security risks) and industry changes in the most recent year on the company's financial status and countermeasures:

The Company has always been specialized in technological improvement and research and development, and has a high sensitivity to technological and industrial changes. We can not only fully integrate and improve emerging technologies in

products, but also adjust product structure at any time according to changes in the industry. Therefore, technological changes and industrial changes should not have any adverse impact on the Company's financial status. The control policies and countermeasures for infocomm security risks are as follows:

(1) Information Security Policy

A. Ensure the security of the Company's data, systems, equipment and network communications, and prevent external intrusion and damage.

B. Ensure that system information account access rights and system changes are authorized in compliance with the Company's prescribed procedures.

C. Implement the destruction procedures, and the computer storage media that have been scrapped should be destroyed to avoid accidental leak of data.

D. Monitor the security status and activity records of the information system, and effectively grasp and handle information security incidents.

E. Maintain the usability and integrity of data and systems, and resume normal operations in the event of a disaster or damage. At present, the Company's information security maintenance measures are complete; considering that information security insurance is still an emerging type of insurance which involves supporting measures such as information security classification and claims identification, it is still under evaluation of future applicability.

(2) Information Security Network Architecture

The Company pays attention to information security matters, and regularly reports information security management operations to the manager when necessary. The Company's internal systems are all in the virtual network, the external network is isolated and cannot be directly accessed; besides, the Company adopts a multiple network security defense system, the firewall at the front end of the network and the email content security control system are responsible for filtering the content of incoming and outgoing connections on the Internet, which can defend against external network attacks and block threats such as the latest malware, harmful website links and spam email in real time. The central console is deployed with anti-virus software on Internal hosts and endpoints; virus patterns are updated at all times to identify malicious behavior characteristics in real time, and can instantly block viruses, Trojans, worms, ransomware and malicious programs in folders to effectively reduce the risk of damage by hacker attacks.

(3) System account life cycle management and authority level management

User accounts and authority levels are set up according to the business scope and responsibility. Data can be accessed for any use or change after the approval process, i.e. approval of the responsible supervisor's application. Once the user leaves the original position, the user's account and authority level will be revoked immediately to prevent unauthorized use.

(4) Data access records audited and stored can record the track records of system file

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access, e-mails and other information for archiving. Computers that have completed the scrapping process are dismantled and destroyed to comply with the management system and information security policy.

(5) Continuous operation of the information system - Important systems and documents are backed up locally on a daily, weekly and monthly basis, and the relevant backup data are stored in the bank safe in the form of tapes for off-site backup. System data recovery test drills are carried out regularly every year to ensure the normal operation of the information system and data preservation, in order to reduce the risk of data loss caused by unwarranted natural disasters and man-made disasters.

(VI) Impact of corporate image change in the most recent year on corporate crisis management and countermeasures:

The Company ways adheres to the business philosophy of professionalism and integrity, and attaches importance to corporate image and risk control. At present, there is no foreseeable crisis.

(VII) Expected benefits and possible risks of mergers and acquisitions in the most recent year and countermeasures:

The Company currently has no merger or acquisition related matters.

(VIII) Expected benefits and possible risks of plant expansion and countermeasures: None.

(IX) Risks and countermeasures associated with concentrated sales or purchases:

The Company has no single largest purchaser in 2025, so there is no such a risk.
In 2025, the Company's top two sales customers accounted for 17% and 8 of the net operating revenue, respectively. The top ten sales customers accounted for 56% of the net operating revenue, and there has been no excessive concentration of sales. The Company's products are widely used in computer and peripheral devices, consumer electronics and other components. In recent years, the Company has actively developed new products, including connectors (cables) for automotive, internet and industrial control. Its sales targets are all over the world to diversify the risk of sales concentration.

(X) Impact and risks on the company from the substantial transfer or replacement of shares by directors, supervisors or major shareholders holding more than 10% of the shares in the most recent year and countermeasures:

The directors, supervisors, or major shareholders holding more than 10% of the shares of this Corporation have not transferred a large number of shares in the most recent year and up to the date of printing of the annual report.

(XI) Impact and risks on the company from any change of management, and countermeasures:

The company has no change of its management rights in the most recent year and up to the date of publication of the annual report, so it is not applicable.

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(XII) For litigation or non-litigation events, list the material litigation, non-litigation or administrative litigation events that have been decided or are still outstanding of the Company and its directors, supervisors, president, substantive responsible persons, major shareholders holding more than 10% of its shares, and affiliated companies, and the results of which may have a significant impact on shareholders' equity or securities prices; disclose the facts in dispute, the amount of the subject matter, the commencement date of the litigation, the main litigants involved in the litigation and the handling up to the printing date of the annual report: None.

(XIII) Other important risks and countermeasures: None.

VII. Other important matters: None.

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Six. Special Disclosure

I. Information of affiliated companies

(I) Consolidated business report:
Related information can be obtained from the “Market Observation Post System” on the website of the TWSE. (website: https://mopsov.twse.com.tw/mops/web/t57sb01_q10)

(II) Declaration concerning consolidated financial statements of affiliated enterprises:

Chant Sincere Co., Ltd. and Subsidiaries

Declaration concerning consolidated financial statements of affiliated enterprises

The business entities to be included in the Company’s 2025 (from January 1, 2025 to December 31, 2025) “Affiliated Enterprise Consolidated Financial Statements” that are prepared in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Report and Consolidated Financial Statements of Affiliated Enterprises” and the business entities to be included in the Company’s parent-subsidiary consolidated financial statements in accordance with IFRS No. 10 are the same; also, the relevant information to be disclosed in the “Affiliated Enterprise Consolidated Financial Statements” has already been disclosed in the aforementioned parent-subsidiary consolidated financial statements; therefore, the “Affiliated Enterprise Consolidated Financial Statements” will not be prepared separately.

Hereby declare

Company name: Chant Sincere Co., Ltd.

Responsible person: Lien-Hsi Wu

March 04, 2026

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(III) Affiliation report: None.

II. Private Placement of Securities in the Most Recent Year up to the Publication of this Annual Report: None.

| Item | First Domestic Private Placement of Unsecured Convertible Corporate Bonds in 2023
Date of issuance: December 29, 2023 | | | | |
| --- | --- | --- | --- | --- | --- |
| Type of private placement securities | Domestic unsecured convertible corporate bonds | | | | |
| Date of approval and quantity approved by the shareholders’ meeting | December 1, 2023; up to 17 million ordinary shares | | | | |
| Basis and reasonableness of the price set | According to the resolution of the Company’s shareholders’ meeting on December 1, 2023, the conversion price was determined based on no less than 80% of the theoretical price, with December 8, 2023 as the conversion price fixing date. The conversion price was NT$54.40 per share. | | | | |
| Method of selecting specific persons | The objects for this offering shall be limited to the specified persons in compliance with Article 43-6 of the Securities and Exchange Act and the Financial Supervisory Commission’s letter dated June 13, 2002 referenced (91) Tai-Cai-Zheng-Yi-Zi No. 0910003455.
The offerees decided by the Company’s board meeting on December 8, 2023 were:
(1) High Power International Co., Ltd. (private placement amount NT$430,300 thousand)
(2) Zoyi Capital Fund II Investment, L.P. (private placement amount NT$264,700 thousand) | | | | |
| Reasons for the private placement | The timeliness and convenience of fundraising, and the cost of issuance. | | | | |
| Date the price has been paid up in full | December 21, 2023 | | | | |
| Information of the Offeree | Objects of private placement | Qualification requirements | Subscription quantity (NT$ thousands) | Relationship with the Company | Involvement in the Company’s operation |
| | High Power International Co., Ltd. | In line with Subparagraph 2 of Paragraph 1 | 430,300 | None | None |

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	Zoyi Capital Fund II Investment, L.P.	of Article 43-6 of the Securities and Exchange Act	264,700	None	None
Actual subscription (or conversion) price	NT$54.40
Difference between the actual subscription (or conversion) price and the reference price	The conversion price was NT$54.40, which was 80.05% of the reference price of NT$67.96.
The impact of private placement on shareholders’ equity	The amount of this private placement accounts for about 13.45% of the paid-in capital, which is not expected to cause significant damage to shareholders’ equity.
Utilization of private placement funds and plan implementation progress	The first domestic private placement of unsecured convertible corporate bonds was completed on December 21, 2023. The NT$695,000 thousand raised was fully used as planned in the fourth quarter to either replenish the Company’ working capital or reinvestment or meet the funding needs for other future development, so as to effectively reduce the cost of capital, strengthen the competitiveness of the Company, and improve the operating performance.
Demonstration of private placement benefits	High Power International Co., Ltd. and Zoyi Capital Fund II Investment, L.P. are both subsidiaries of PHI Fund. In the future, PHI Fund is expected to cooperate with Hirschmann Car Communication, a German Internet of Vehicles solution provider, and the Company in the field of high-speed and high-frequency connectors.

III. Other supplementary information: None.

IV. Any matters stipulated in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act that occurred in the most recent year and up to the date of publication of the annual report which materially affected shareholders' equity or the price of the Company's securities: None.

Important resolutions of the 2025 general shareholders' meeting of Chant Sincere Co., Ltd.

Date of meeting	Agenda	Meeting agenda	Execution
2025.05.28	Acknowledgments	I. Recognition of the Company's 2024 business report, financial statements and consolidated financial statements. Resolution: Approved as per the original proposal.	The approval of the shareholders meeting is archived.
		II. The Company's 2024 earnings distribution proposal. Resolution: Approved as per the original proposal.	The cash dividend of NT$131,577,451 will be distributed. The cash dividend for ordinary shares is NT$1.6 per share.
	Discussions	I. Amendment to the “Company's Articles of Association”. Resolution: Approved as per the original proposal.	It has been implemented after the approval of the meeting.
		II. Proposal on private placement of ordinary shares and/or unsecured convertible corporate bonds. Resolution: Approved as per the original proposal.	It has been implemented after the approval of the meeting.

Important resolutions of the board meetings of Chant Sincere Co., Ltd.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
Board of Directors	2025.02.27	Discussions	I. Approval of the Company's draft financial statements and draft consolidated financial statements for 2024 which were prepared by the Company itself and reviewed by the CPA. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	The relevant operating procedures have been completed, and the financial reports have been submitted to the competent authorities.
			II. Approval of the Company's 2024 earnings distribution proposal. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and submitted to the shareholders' meeting for resolution.
			III. Approval of the remuneration distribution plan for employees and directors for 2024. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and reported to the shareholders' meeting.
			IV. Discussion of the Company's 2024 "Assessment of the Effectiveness of the Internal Control System" and "Internal Control System Declaration". Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
			V. Proposal for the time and place of the 2025 general shareholders' meeting of the Company, and the announcement date of shareholders' right to propose.	Relevant operating procedures have been completed and declared and announced according to law.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
			Resolution: The proposal was unanimously approved by all members present after the chairman's query.
			VI. Assessment of the certifying PwC Taiwan CPA's independence and suitability. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			VII. Discussion on the financing lines from various financial institutions. Resolution: The proposal was unanimously approved	Relevant operating procedures have been completed.
			VIII. Amendment to the "Articles of Association" of the Company Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and submitted to the shareholders' meeting for resolution.
			IX. Proposal for the Company to change the CPA. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
			X. Proposal on private placement of ordinary shares and/or unsecured convertible corporate bonds. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
			XI. Proposal to approve the provision of non-assurance services by PwC Taiwan and its affiliates to the Company and its subsidiaries. Resolution: The proposal was unanimously approved	Relevant operating procedures have been completed.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
			by all members present after the chairman's query.
Special Meeting of the Board of Directors	2025.04.11	Discussions	I. Revision of the Company's "Regulations Governing the Transfer of Repurchased Shares to Employees" Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			II. The Company proposed to transfer shares repurchased through its share buyback program to employees. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law..
			III. Proposal for the Disposal of U.S. Bonds. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			IV. Proposal for the Disposal of U.S. Bonds. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			V. Proposal for the Disposal of U.S. Bonds. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			VI. Proposal for the Disposal of U.S. Bonds. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
Board of Directors	2025.05.08	Discussions	I. Approval of the Company's draft consolidated financial statements for the first quarter of 2025 which were prepared by the Company itself and reviewed by the CPA.	The relevant operating procedures have been completed, and the financial reports have been submitted to the competent authorities.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
			Resolution: The proposal was unanimously approved by all members present after the chairman's query.
			II. Proposal to the amendment of the “Regulations Governing the Acquisition and Disposal of Asset” of the Company. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and submitted to the shareholders' meeting for resolution.
Board of Directors	2025.08.07	Discussions	I. Approval of the Company's draft consolidated financial statements for the second quarter of 2025 which were prepared by the Company itself and reviewed by the CPA. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	The relevant operating procedures have been completed, and the financial reports have been submitted to the competent authorities.
			II. Review of the certifying CPA's professional fees. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			III. Proposal to the approval of the Company's 2024 Sustainability Report. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			IV. Proposal for Applying for a Credit Line for Derivative Hedging Instruments with Cathay United Bank. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
Board of Directors	2025.11.06	Discussions	I. Approval of the Company's draft consolidated financial statements for the third quarter of 2025 which were prepared by the Company itself and reviewed by the CPA. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	The relevant operating procedures have been completed, and the financial reports have been submitted to the competent authorities.
			II. Proposal to the amendment of the "Regulations Governing the Acquisition and Disposal of Asset" of the Company. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and submitted to the shareholders' meeting for resolution.
			III. Proposal to the amendment of the "Sustainable Development Best Practice Principles" of the Company. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			IV. Proposal to establish a new internal control operating procedure on "Management Procedures for Defining the Scope of Entry-Level Employees" Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			V. Motion for defining the scope of the Company's entry-level employees. Resolution: The proposal was unanimously approved	Relevant operating procedures have been completed.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
			by all members present after the chairman's query.
Board of Directors	2025.12.18	Discussions	I. Approval of the Company's 2026 business plan. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			II. Approval of the Company's 2026 audit plan. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
			III. Approval of the Company's 2025 year-end bonus. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			IV. Proposal for the Company's 2026 Financing and Loan Credit Facilities with Various Financial Institutions. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			V. Proposal to establish a new internal control operating procedure on "Management Procedures for Defining the Scope of Entry-Level Employees" Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			VI. Motion for defining the scope of the Company's entry-level employees. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
Board of Directors	2026.03.04	Discussions	I. Approval of the Company's draft financial statements and draft consolidated financial statements for 2025 which were prepared by the Company itself and reviewed by the CPA. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	The relevant operating procedures have been completed, and the financial reports have been submitted to the competent authorities.
			II. Approval of the Company's 2025 earnings distribution proposal. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and submitted to the shareholders' meeting for resolution.
			III. Approval of the remuneration distribution plan for employees and directors for 2025. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and reported to the shareholders' meeting.
			IV. Discussion of the Company's 2025 "Assessment of the Effectiveness of the Internal Control System" and "Internal Control System Declaration". Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
			V. Election of the Company's directors. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
			VI. Proposal to Review the Nomination of Director Candidates for the Company's 2026 Term	Relevant operating procedures have been completed and declared and

Meeting	Date of meeting	Meeting agenda	Execution
		Resolution: The proposal was unanimously approved by all members present after the chairman's query.	announced according to law.
		VII. Proposal for the Removal of Non-Competition Restrictions on the Company's Newly Appointed Directors
Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
		VIII. Proposal for the Company to change the CPA.
Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
		IX. Assessment of the certifying PwC Taiwan CPA's independence and suitability.
Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
		X. Propose to approve the motion for the Company's private placement of common shares and (or) unsecured convertible corporate bonds approved by the extraordinary shareholders' meeting on May 28, 2025, and the remaining balance will no longer be processed.
Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.
		XI. Proposal on private placement of ordinary shares and/or unsecured convertible corporate bonds.	Relevant operating procedures have been completed and declared and
			announced according to law.

Meeting	Date of meeting	Agenda	Meeting agenda	Execution
			Resolution: The proposal was unanimously approved by all members present after the chairman's query.	announced according to law.
			XII. Proposal to the amendment of the “Rules for Election of Directors” of the Company. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed.
			XIII. Proposal for the time and place of the 2026 general shareholders' meeting of the Company, and the announcement date of shareholders' right to propose. Resolution: The proposal was unanimously approved by all members present after the chairman's query.	Relevant operating procedures have been completed and declared and announced according to law.

CHANT SINCERE CO., LTD.

Chairman: Lien-Hsi Wu

AI assistant

COXOC Annual Report 2025

52530_rns_2026-05-28_4e284b97-5dce-4725-9acb-51ce28abafeb.pdf

CHANT SINCERE CO.,LTD.

2025 Annual Report

Notice to readers

Table of Contents

Six. Special Matters to be Included 129

Two. Corporate Governance Report

(2) Independence of the board of directors

II. Implementation of Corporate Governance

(I) Operation of board meeting

Table 1

Climate-related information for TWSE/TPEx-listed companies

1. Implementation of climate-related information

1-1-2 Greenhouse Gas Inventory Information

1. 2023-2024 Assurance information:

1-2 goals, strategies and action plans for greenhouse gas reduction

Three. Capital Overview

Four. Operational Overview

2. Industry Overview

(1) Current and future industry prospects

① Upstream:

VII. Important Contracts

Five. Review and Analysis of the financial status and financial performance, and risk management

AI assistant

COXOC — Annual Report 2025

52530_rns_2026-05-28_4e284b97-5dce-4725-9acb-51ce28abafeb.pdf

CHANT SINCERE CO.,LTD.

2025 Annual Report

Notice to readers

Table of Contents

Six. Special Matters to be Included 129

Two. Corporate Governance Report

(2) Independence of the board of directors

II. Implementation of Corporate Governance

(I) Operation of board meeting

Table 1

Climate-related information for TWSE/TPEx-listed companies

1. Implementation of climate-related information

1-1-2 Greenhouse Gas Inventory Information

1. 2023-2024 Assurance information:

1-2 goals, strategies and action plans for greenhouse gas reduction

Three. Capital Overview

Four. Operational Overview

2. Industry Overview

(1) Current and future industry prospects

① Upstream:

VII. Important Contracts

Five. Review and Analysis of the financial status and financial performance, and risk management

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COXOC Annual Report 2025