Stock Code: 3607

COXON

COXON PRECISE INDUSTRIAL CO., LTD

2025 Annual Report

Annual Report is available at: https://mops.twse.com.tw/mops/web/index
Company Website: http://www.coxongroup.com
Printed On April 17, 2026

I. Name, Title, Telephone and Email of Spokesperson and Deputy Spokesperson:

(I) Name of spokesperson: Hsu, Chia-Hung
Title: Vice General Manager of Finance Department
Tel: (03) 425-2153
E-mail: [email protected]

(II) Name of deputy spokesperson: Wang, Hsiao-Lan
Title: Manager of Finance Department
Tel: (03) 425-2153
E-mail: [email protected]

II. Address and Telephone Number of Headquarters and Factories:

(I) Headquarters Address: No. 48, Ln. 1274, Zhongzheng Rd., Zhongli Dist., Taoyuan City, Taiwan (R.O.C.) 320009
Tel: (03) 425-2153

(II) Address: No. 38, 46 and 48, Ln. 1274, Zhongzheng Rd., Zhongli Dist., Taoyuan City, Taiwan (R.O.C.) 320009
Tel: (03) 425-2153

III. Stock Transfer Agency:

Name: Taishin Securities Co., Ltd.
Address: B1F., No. 96, Sec. 1, Jianguo N. Rd., Zhongshan Dist., Taipei City, Taiwan (R.O.C.)
Tel: (02) 2504-8125
Website: https://www.tssco.com.tw/

IV. Contact information of the Certified Public Accountants for the Latest Financial Report

Name of CPA: Ming-Chung Hsieh, Pan-Fa Wang
Name of accounting firm: Deloitte & Touche Taiwan
Address: 20F., No. 100, Songren Rd., Xinyi Dist., Taipei City, Taiwan (R.O.C.)
Tel: (02) 2725-9988
Website: https://www2.deloitte.com/tw/tc.html

V. Overseas Securities Exchange: None.

VI. Company Website: http://www.coxongroup.com

Page

One. Letter to Shareholders ... 1

Two. Corporate Governance Report

I. Information on the Company’s Directors, General Manager, Vice General Manager, and the Assistant General Managers of all the Company’s Divisions and Branch Units ... 3

II. Remuneration Paid During the Most Recent Fiscal Year to Directors, General Manager, and Vice General Manager ... 12

III. The State of the Company’s Implementation of Corporate Governance ... 20

IV. Information on CPA Professional Fees ... 60

V. Information on Replacement of CPAs ... 61

VI. Information on Service of the Company’s Chairman, General Manager, and Financial or Accounting Managers at the Accounting Firm or Its Affiliates ... 61

VII. Any Transfer of Equity Interests and/or Pledge of or Change in Equity Interests (During the Most Recent Fiscal Year or During the Current Fiscal Year Up to the Date of Publication of the Annual Report) by a Director, Managerial Officer, or Shareholder with a Stake of More Than 10 Percent During the Most Recent Fiscal Year or During the Current Fiscal Year Up to the Date of Publication of the Annual Report ... 61

VIII. Relationship Information, If Among the Company’s 10 Largest Shareholders Any One is a Related Party or a Relative Within the Second Degree of Kinship of Another ... 62

IX. The Total Number of Shares and Total Equity Stake Held in Any Single Enterprise By the Company, Its Directors, Managers, and Any Companies Controlled Either Directly or Indirectly By the Company ... 63

Three. Capital Raising Activities

I. Capital and Shares ... 64

II. Corporate Bonds ... 68

III. Preferred Shares ... 68

IV. Global Depository Receipts ... 68

V. Employee Stock Warrants ... 68

VI. Restricted stock and Status of New Shares Issuance in Connection with Mergers and Acquisitions ... 68

VII. The Status of Implementation of Capital Allocation Plans ... 68

Four. Operational Highlights

I. Business Activities ... 69

II. Market and Sales Overview ... 73

III. The Number of Employees Employed for the 2 Most Recent Fiscal Years, and During the Current Fiscal Year Up to the Date of Publication of the Annual Report, Their Average Years of Service, Average Age and Educational Background ... 78

IV. Disbursements for Environmental Protection ... 78

V. Labor Relations ... 78

VI. Cybersecurity management ... 80

VII. Important Contracts ... 81

Five. A Review and Analysis of the Company’s Financial Position and Financial Performance, and a Listing of Risks

I. Financial Position ... 82

II. Financial Performance ... 83

III. Cash Flow ... 83

IV. Major Capital Expenditures During the Most Recent Fiscal Year ... 84

V. Investment Policy for the Most Recent Fiscal Year, the Main Reasons for the Profits or Losses, Improvement Plans, and Investment Plans for the Coming Year ... 84

Page

VI. Risk Management ... 85
VII. Other Important Matters ... 87

Six. Special Disclosure

I. Information Related to the Company’s Affiliates ... 88
II. Transaction About the Company’s Private Placement of Securities During the Most Recent Fiscal Year Up to the Date of Publication of the Annual Report ... 90
III. Other Matters that Require Additional Description ... 90

Seven. Whether Situations Listed in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act, which Might Materially Affect Shareholders' Equity or the Price of the Company's Securities, has Occurred During the Most Recent Fiscal Year or During the Current Fiscal Year Up to the Date of Publication of the Annual Report ... 90

2025 Business Report

(I) Business Plan Implementation Results:
Looking back on 2025, global inflation has gradually slowed down, the U.S. has also started a cycle of interest rate cuts, and the demand for many consumer electronics products has gradually resumed growth. The Company's revenue has also grown this year. Although the Company has continued to reduce its scale, revenue has increased, and its losses have gradually shrunk. At the same time, the Company has actively cleaned up idle equipment and investments, making 2025 profitable for the first time in many years. In 2026, the global economy has been conservative, and the Company's steady operations are looking for opportunities. The Company's management team will work harder to give back to shareholders.

(II) Analysis of receipts, expenditures, and profitability:
Units: NT\$thousand

Item	2025	2024	Increase/decrease (%)
Operating revenue	2,784,296	3,136,753	(11.24)
Operating costs	2,498,755	2,839,924	(12.01)
Operating profits	285,541	296,829	(3.80)
Operating expenses	365,769	360,410	1.49
Operating income	(80,228)	(63,581)	NA
Non-operating income and expenses	82,026	85,757	(4.35)
Profit before tax	1,798	22,176	(91.89)
Net profit	2,210	21,391	(89.67)

(III) Research and development status:
The Company continued to develop the technology for surface treatment of plastics, and commenced mass production of IMD with two colors and two materials, automatic mold processing, automatic cutting and arrangement, NMT combining related applications for plastic products, surface spraying of black grain leather and PU paint, fully automatic film, automatic sheet metal implantation, NMT combining ceramic plastic, air transfer printing, gradient coating, Various material molding and sputtering processes, implementation of PCR material which provide customers with more selective choices.

II. 2025 Business Overview

(I) Business plan:
1. Strengthening R&D and production, adjustment of product mix, and development of niche product lines.
2. Vertically extend core technologies, integrate upstream and downstream companies, and provide customers with comprehensive solutions.
3. Expand product line breadth and economic scale, and reduce production and management costs via organizational integration.
4. Strengthen risk awareness, and perform strict control on inventory and accounts receivable.

(II) Sales volume forecast and the basis thereof:

Based on the future market outlook, the Company's 2026 sales volume estimated by the sales department is as follows:

Units: thousand units

Product	Sales volume
Plastic components	322,655

The Company is a professional manufacturer of 3C components, and its 2026 sales volume forecast is determined by changes in market conditions, and orders received by the sales department.

(III) Important production and sales policies:

Actively cooperate with global manufacturers to develop new products, in order to meet customer needs and keep in line with market trends.
Actively develop niche products, with centralized production to reduce price competition from industry peers.
Continual investment in R&D to develop the best market segmentation, with excellent mold development capabilities and process technology.

III. The Company's future development strategy

Looking forward to 2026, as the products are currently at maturity stage, the China-U.S. trade war may resume. Meanwhile, the rise of supply chains in China will exert pressure on Taiwanese manufacturers. Given shorter product life cycle and with the perspective of evolving towards product integration, companies with better flexibility and vertical integration capabilities are more likely to make profits. The Company will uphold the spirit of diligence and active innovation, focusing on plastic and metal components, and hope to tap into non-3C product markets to diversify risks. In addition, the Company will provide comprehensive services for customers by use of its cost advantages of vertical integration, technical solutions and experienced professionals, developing products with excellent quality, with competitive advantages on customer satisfaction, technological innovation, and process improvement.

IV. The effect of external competition, the legal environment, and the overall business environment

This year, the overall industrial inventory pressure has been slightly relieved. However, the Mainland China's labor and environmental laws and operating environment are becoming more and more stringent for enterprises. In addition, the China-US trade war has forced suppliers to gradually relocate to Southeast Asia and other countries, which has put Taiwanese companies under great pressure. These factors are still severe, but they are also opportunities to encourage enterprises to continue to diversify and improve themselves. The Company will continue to strengthen the layout of vertical integration based on years of experience in stable operations, hoping to find new niches and maintain stable operations.

In the future, the Company colleagues will dedicate efforts to meet shareholder expectations, and increase shareholder value. Finally, we wish you

Good health and all the best.

Chairman:

Managerial Officer:

Accounting Manager:

Two.Corporate Governance Report

V. Information on the Company’s Directors, General Manager, Vice General Manager, Assistant General Managers of all the Company’s Divisions and Branch Units (I) Director

Information on the Company's directors
April 17, 2026 Units: Thousand shares; %

Title	Nationality or Place of Registration	Name	Gender and age	Date Elected	Term	Date First Elected	Shareholding When Elected		Current Shareholding		Spouse & Minor Current Shareholding		Current Shareholding in the name of others		Experience (Education)	Current Positions at The Company and Other Companies	Executives, Directors who are spouses or within two degrees of kinship			Remark
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Chairman	R.O.C.	Hong, Huan-Ching	Male 79	2025-6-26	3 years	2007-12-12	3,346	2.75	3,346	2.75	612	0.50	-	-	Feng-Chia University Department of Hydraulic Engineering Factory Manager of Shinying Industrial Co., Ltd. General Manager of Coxon Precise Industrial Co., Ltd.	Chairman of Coxon Precise Industrial Co., Ltd. Director of Coxon Industry Ltd., Samoa Director of Cheng Yee Enterprise Co. Ltd., Samoa Director of Hang Yuan Enterprise Ltd., Samoa Chairman of Coxon Industry (Changshu) Co., Ltd. Chairman of Changshu Huaxon Industry Co., Ltd. Chairman of Coxon Social Charitable Foundation	-	-	-	-
Vice Chairman	R.O.C.	Wu, Wen-Hsiang	Male 72	2025-6-26	3 years	2007-12-12	3,144	2.58	3,127	2.57	1,817	1.49	-	-	Feng-Chia University Department of Accounting Financial Manager of Shinying Industrial ACo., Ltd. Vice General Manager of Coxon Precise Industrial Co., Ltd.	Vice Chairman of Coxon Precise Industrial Co., Ltd. Executive Director of Keen Ching Industrial Co., Ltd. Director of Sun Can International Ltd., Samoa Director of Cheng Yee Enterprise Co. Ltd., Samoa Director of Hang Yuan Enterprise Ltd., Samoa Director of Coxon Industry Ltd., Samoa Supervisor of Coxon Industry (Changshu) Co., Ltd. Supervisor of Changshu Huaxon Industry Co., Ltd. Director of Sinxon Plastic (Dong Guan) Ltd. Director of Coxon Social Charitable Foundation Director of Simpla Biotech Co., Ltd. 7th honorary director of Zhongli Branch, Friend of Railway Police Association 10th director of Zhongli Branch, Friend of Railway Police Association 8th honorary consultant of Taoyuan Yi Jing Studies Association 7th & 9th & 10th honorary president of Taoyuan Yi Jing Studies Association 11th Vice Chairman of Taoyuan Yi Jing Studies Association 7th & 8th chairman of China Tibetan Buddhism Great Wisdom of Sakya Studies Association	-	-	-	-
Director	R.O.C.	Chang, Wen-Tung	Male 67	2025-6-26	3 years	2007-12-12	4,018	3.30	4,018	3.30	1,210	0.99	-	-	Department of Business Administration, Chihlee	General Manager of Coxon Precise Industrial Co., Ltd. Director of Cheng Yee Enterprise Co. Ltd., Samoa	-	-	-	-

Title	Nationality or Place of Registration	Name	Gender and age	Date Elected	Term	Date First Elected	Shareholding When Elected		Current Shareholding		Spouse & Minor Current Shareholding		Current Shareholding in the name of others		Experience (Education)	Current Positions at The Company and Other Companies	Executives, Directors who are spouses or within two degrees of kinship			Remark
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
															University of Technology Production Manager of Shinying Industrial Co., Ltd. Chairman of Coxon Precise Industrial Co., Ltd.	Director of Hang Yuan Enterprise Ltd., Samoa Director of Coxon Industry Ltd., Samoa Director of Coxon Industry (Changshu) Co., Ltd. Director of Changshu Huaxon Industry Co., Ltd. Chairman and General Manager of Sinxon Plastic (Dong Guan) Ltd. Director of Coxon Social Charitable Foundation
Director	R.O.C.	Lu, Kuo-Liang	Male 78	2025-6-26	3 years	2010-6-14	300	0.25	300	0.25	1	0.00	-	-	Feng-Chia University Department of Hydraulic Engineering Managerial Officer of Central Region Office, CECI Engineering Consultants Inc., Taiwan Assistant Manager of the Central Office, China Engineering Consultants, Inc. Supervisor of Coxon Precise Industrial Co., Ltd.	CEO of Coxon Social Charitable Foundation	-	-	-	-
Director	R.O.C.	Hsu, Chia-Hung	Male 53	2025-6-26	3 years	2019-6-6	144	0.12	144	0.12	-	-	-	-	Department of Accounting, National Taiwan University Account examiner of KPMG Assistant Manager of Underwriting Department, Taiwan International Securities Corporation Financial Manager of Kunshan Factory, Hold Jinn Electronics	Director of Coxon Industry (Changshu) Co., Ltd. Supervisor of Sinxon Plastic (Dong Guan) Ltd.	-	-	-	-

Title	Nationality or Place of Registration	Name	Gender and age	Date Elected	Term	Date First Elected	Shareholding When Elected		Current Shareholding		Spouse & Minor Current Shareholding		Current Shareholding in the name of others		Experience (Education)	Current Positions at The Company and Other Companies	Executives, Directors who are spouses or within two degrees of kinship			Remark
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
															Co., Ltd.
Director	R.O.C.	Hsieh, Jen-Chien	Male 56	2025-6-26	3 years	2022-6-14	-	-	-	-	19	0.02	-	-	Industrial Engineering and Management, National Kaohsiung University of Science and Technology Department Head of Fengyi Electronics	Director of Sinxon Plastic (Dong Guan) Ltd.	-	-	-	-
Independent Director (Note1)	R.O.C.	Chen, Ming-Der	Male 66	2022-6-14	3 years	2008-6-28	-	-	-	-	-	-	-	-	MBA, National Cheng-Chi University General Manager of Ding Jih Financial Consulting Inc.	CFO of Finance Supreme Electronics Co., Ltd. Independent Director of Lungyen Life Service Corp. Independent Director of PlexBio Co.,Ltd.	-	-	-	-
Independent Director (Note1)	R.O.C.	Wu, Teng-Tsan	Male 71	2022-6-14	3 years	2008-6-28	-	-	-	-	-	-	-	-	Department of Finance, National Defense University Chief Financial Officer of the Comptroller Bureau, Ministry of National Defense	CPA of Sun Rise CPA Office	-	-	-	-
Independent Director	R.O.C.	Lin, Chih-Chen	Male 77	2025-6-26	3 years	2022-6-14	16	0.01	16	0.01	1	0.00	-	-	Feng-Chia University Taiwan Power Company Waterway Section Chief of Longmen Construction Department	None	-	-	-	-
Independent Director (Note1)	R.O.C.	Fang,Hsueh-Che	Female 70	2025-06-26	3 years	2025-06-26	29	0.02	29	0.02	15	0.01	-	-	Department of Business, National Taiwan University ustoms administration, ministry of finance Kaohsiung customs	None	-	-	-	-
Independent Director (Note1)	R.O.C.	Chang,Shu-Chuan	Female 54	2025-06-26	3 years	2025-06-26	-	-	-	-	-	-	-	-	NCCU BA Ever Bright CPA Firm CPA Financia Manager of Rossmax	General Manager of Rossmax International Ltd & chief corporate governance officer Director of CARDIOCARE CO., LTD director of ROSSMAX INNOTEK CORP & director of VIWAVE ULIFE CO., LTD	-	-	-	-

Title	Nationality or Place of Registration	Name	Gender and age	Date Elected	Term	Date First Elected	Shareholding When Elected		Current Shareholding		Spouse & Minor Current Shareholding		Current Shareholding in the name of others		Experience (Education)	Current Positions at The Company and Other Companies	Executives, Directors who are spouses or within two degrees of kinship			Remark
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
															International Ltd Director of CARDIOCARE CO., LTD director of VITTZ HEALTHCARE INC director of Vitsla Inc director of ROSSMAX INNOTEK CORP director of Atlantean Corp director of VIWAVE ULIFE CO., LTD director and special assistant of WE CAN MEDICINES CO., LTD	director and special assistant of WE CAN MEDICINES CO., LTD & chief corporate governance officer Supervisor of RMJ Corp. LTD Supervisor of GMC INC.

Note1: The original independent directors Chen, Ming-Der and Wu, Teng-Tsan were dismissed on June 26, 2025; on June 26, 2025, the shareholders' meeting approved the election of Fang, Hsueh-Chen and Chang Shu-Chuan as new independent directors.

Major shareholders of institutional shareholders

Name of Institutional Shareholder (Note 1)	Major Shareholders of Institutional Shareholder (Note 2)
Fuji Seiki Co., Ltd. Investment Account Entrusted to China Trust Commercial Bank Shareholding: 1.32%	Name of Shareholder	%
	Recording Industry Association of Japan	11.80
	PHILLIP SECURITIES (HONG KONG) LIMITED LIM WAN SAI	4.77
	MUFG Bank, Ltd.	2.96
	Rakuten Group, Inc.	1.43
	Ii Takeshi	1.41
	Ii Chihiro	1.23
	Ii Tamami	1.23
	Nanto Bank, Ltd.	1.23
	Yoshinobu Aomori	1.15
	SBI Ltd.	1.11
	Subtotal	28.35
Hefeng United Co., Ltd. Shareholding: 1.64%	Name of Shareholder	%
	Su Huizhen	83.33
	Lin Enchi	16.67
	Subtotal	100.00

Note 1: For directors as the representatives of institutional shareholders, this section shall indicate the names of the institutional shareholders.
Note 2: The names of the top ten institutional shareholders and their shareholding percentage. For major shareholders of institutional shareholders, please fill in Table 2.
Note 3: For corporate shareholders that are not corporate entities, the name of capital contributor or donor (please refer to the announcement of the Judicial Yuan and inquiries) and percentage of capital contribution or donation are shown instead of shareholder name and shareholding percentage. If the donor has passed away, please mark the donor as "deceased"

Major shareholders of institutional shareholders as representatives of institutional shareholders: None.

3.1 Professional qualifications and independence analysis of directors

Criteria Name	Professional qualifications and experience (Note 1)	Whether or not have been a person of any conditions defined in Article 38 of the Company Act	Independence Attribute (Note 2)
			A spouse, relative within the second degree of kinship are designated as representative to serve as the Company's director or supervisor	Current number of shares (thousand shares) and shareholding of the shareholder, spouse and relative within the second degree of kinship (or in the name of others)	Whether or not serve as a director, supervisor, or employee in the Company or any entity that has a certain relationship with the Company (refer to Article 3, Paragraph 1, Subparagraphs 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies)	Cumulative compensation by providing commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the past 2 years
						NTSthousand	2025
Hong, Huan-Ching	After graduating from the Department of Water Resources Engineering and Conservation of Feng-Chia University in 1971, Mr. Hong Huan-Ching has successively served as production manager of Taiwan Sanoh Electric Co., Ltd., factory manager of Shinying Industrial Co., Ltd., and business manager of Taiwan Nissin Koki Co., Ltd. He has founded the Company in 1989, and successively served as the Company's General Manager and Chairman.	Yes	No	3,957
3,25%	No	1,984	1,407	-
Wu, Wen-Hsiang	After graduating from the Accounting Department of Feng Chia University in 1976, Mr. Wu, Wen-Hsiang has successively served as tax staff of the Tax Bureau, Nantou County, general affairs and business specialist of Taiwan Chemical Board Co., Ltd., and manager of the management department and financial department of Shinying Industrial Co., Ltd. Since 2000, he served as the Company's associate manager, vice general manager and vice chairman.	Yes	Yes	4,944
4,06%	No	94	194	-
Chang, Wen-Tung	After graduating from the Business Management Department, Mr. Chang, Wen-Tung successively served as the production manager of Shinying Industrial Co., Ltd. In 1989, he participated in the establishment of the Company, and successively served as the Company's manager, general manager and chairman.	Yes	No	5,228
4,29%	No	280	280	-
Lu, Kuo-Liang	After graduating from the Department of Water Resources Engineering and Conservation of Feng-Chia University in 1971, Mr. Lu Kuo-Liang has successively served as the Managerial Officer of Central Region Office, CECI Engineering Consultants Inc., Taiwan, and Assistant Manager of the Central Office, China Engineering Consultants, Inc. Since 2010, he has successively served as the Company's director and supervisor.	Yes	No	301
0,25%	No	30	65	-
Hsu, Chia-Hung	After graduating from the Accounting Department of National Taiwan University in 1994, Mr. Hsu Chia-Hung has successively served as the account examiner of KPMG, Assistant Manager of Underwriting Department, Taiwan International Securities Corporation, and Financial Manager of Kunshan Factory, Hold Jinn Electronics Co., Ltd. Since 2004, he has served as the Company's CFO.	Yes	No	144
0,12%	No	1,961	1,938	-
Hsieh, Jen-Chien	Mr. Hsieh, Jen-Chien graduated from Industrial Engineering and Management in 1992, National Kaohsiung University of Science and Technology. He was employed by Coxon Group in 1994 and has been working as an expatriate in Mainland China since 1996. He possessed experience as a quality control manager and a general manager of the factory, and is currently served as a business department general manager of the general management office. He Currently serving as the General Manager of the South China Business Department.	Yes	No	19
0,02%	No	2,246	2,314	-

Criteria	Professional qualifications and experience (Note 1)	Whether or not have been a person of any conditions defined in Article 3b of the Company Act	Independence Attribute (Note 2)	Number of Holding Concurrent Independent Director Position in Other Public Name Companies
A spouse, relative within the second degree of kinship are designated as representative to serve as the Company’s director or supervisor	Current number of shares (thousand shares) and shareholding up the shareholder spouse and relative within the second degree of kinship (or in the name of others)	Whether or not serve as a director, supervisor, or employee in the Company or any entity that has a certain relationship with the Company (refer to Article 3, Paragraph 1, Subparagraphs 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies)	Cumulative compensation by providing commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the past 2 years
NT$thousand
Name
Chen, Ming-De (Note1)r	Mr. Chen Ming-Der has a bachelor's degree in Business Administration, National Cheng Kung University, and a master's degree in Business Administration, National Chengchi University. He has successively served as the Vice CFO, Vice CEO, and general manager of Rosa Foods Co., Ltd., the general manager of Ding Jih Financial Consulting Inc., and vice general manager of the General Administration Division of Top Reach Technology Co., Ltd. From 2003 until now, he has been the CFO of Supreme Electronics Co., Ltd., and also served as independent director of Lungyen Life Service Corporation, Ltd. in 2021. He has served as an independent director of PlexBio Co.,Ltd. since 2025 Since July 2008, he was appointed as the independent director of Coxon Precise Industrial Co., Ltd., and became a concurrent member of the Compensation committee starting from 2011, finish the terms on June 26, 2025.	Yes	No	0
Wu, Teng-Tsan (Note1)	After graduating from the Department of Finance, National Defense University in 1976, Mr. Wu, Teng-Tsan served as the head of the Audit Team of Deloitte & Touche. Since 1992, he was appointed as the responsible person of Sun Rise CPA Office, and has been the supervisor of Ming Jong Technologies Co., Ltd. and supervisor of Chialin Precision Industrial Co., Ltd. Since July 2008, he was appointed as the independent director of Coxon Precise Industrial Co., Ltd., and became a concurrent member of the Compensation committee starting from 2011, finish the terms on June 26, 2025..	Yes	No	0
Lin, Chih-Chen	After graduating from Feng-Chia University in 1971, Mr. Lin Chih-Chen worked as a teaching assistant in Feng-Chia University, then started to work in Taiwan Power Company since 1974. He obtained the Certificate of "Quality Control Engineer" from the Public Construction Commission, Executive Yuan, and retired after 39 years of services in TPC, with rich business and procurement experience, and has also been a member of the Compensation committee since 2014.	Yes	No	17
0.01%	No	420	475	-
Fang, Hsueh-Chen (Note1)	Ms. Fang, Hsueh-Chen graduated from the Accounting Department of the Department of Business Administration at National Taiwan University in 1973 with a bachelor's degree. In the same year, she passed the examination for the Kaohsiung Customs Bureau of the Ministry of Finance and worked in various internal and external customs positions from the seventh grade. She retired in 2005 as an auditor at the ninth grade. She worked in the customs for 32 years. From 2013 to 2019, she served as the supervisor of Gusong Precision Industry Co., Ltd.	Yes	No	44
0.03%	No	200	-	-

Criteria	Professional qualifications and experience (Note 1)	Whether or not have been a person of any condition defined in Article 30 of the Company Act	Independence Attribute (Note 2)					Number of Holding Concurrent Independent Director Position in Other Public Name Companies
			A spouse, relative within the second degree of kinship are designated as representative to serve as the Company's director or supervisor	Current number of shares (thousand shares) and shareholding in the shareholders spouse and relative within the second degree of kinship (or in the name of others)	Whether or not serve as a director, supervisor, or employee in the Company or any entity that has a certain relationship with the Company (refer to Article 3, Paragraph 1, Subparagraphs 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies)	Cumulative compensation by providing commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the past 2 years
						NT$thousand	2025
Name						2025	2024
Chang Shu-Chuan (Note1)	Ms. Chang Shu-Chuan graduated from the Department of Business Administration at National Chengchi University in 1994. From that year, she worked as an auditor at Heng Hui Accounting Firm. She passed the Certified Public Accountant (CPA) exam in 1990 and became a certified public accountant in 2002. From 2002, she served as the head of the finance department at Yu Sheng Medical Technology Co., Ltd., and was promoted to CFO in 2018, 2026 promoted General Manager, a position she holds to this day. From 2013 to 2022, she served as an auditor at Gu Song Precision Industry Co., Ltd. From 2018 to 2022, she served as an auditor at You Quan Pharmaceutical Co., Ltd. (formerly Sheng Lin Pharmaceutical Co., Ltd.). Since 2022, she has served as a director of You Quan Pharmaceutical Co., Ltd.	Yes	No	0	No	200	-	-

3.2 Board Diversity and Board Independence:

(I) The structure of the Company's board of directors shall be determined by taking diversity into consideration, covering CPAs or senior executive in other professions. It is advisable that directors concurrently serving as company officers not exceed one-third of the total number of the board members, and that an appropriate policy on diversity based on the Company's business operations, operating dynamics, and development needs be formulated and include, without being limited to, the following two general standards:

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

To achieve the ideal goal of corporate governance, the board of directors shall possess the following abilities:

I. Ability to make operational judgments.
II. Ability to perform accounting and financial analysis.
III. Ability to conduct management administration.
IV. Ability to conduct crisis management.
V. Industrial knowledge.
VI. An international market perspective.
VII. Ability to lead.
VIII. Ability to make policy decisions.
IX. Knowledge and ability related to risk management.

The Company's board of directors is formed by 9 board members, including 6 directors and 3 independent directors, of which $55\%$ of the directors are employees, and $33\%$ are independent directors. The board members have rich experience and specializes in finance, business and management. In addition, the Company also attaches great importance to adding young members to the board composition. The Company aims to have $40\%$ of board members under the age of 60, while the current board members under the age of 60 is $33\%$ . The target percentage of female board members is $33\%$ , currently it is $22\%$ .

The implementation status is as follows:

Core elements of diversity policy Director Name	Nationality	Gender	Age		Assuming the role of the Company's employee concurrently	Independent Director Term of office	Business management	Leadership and Decision-making	Industrial knowledge	Financial accounting
			51-60	61-80		Over 9 years
Hong, Huan-Ching	R.O.C.	Male		V	V		V	V	V
Wu, Wen-Hsiang	R.O.C.	Male		V	V		V	V	V	V
Chang, Wen-Tung	R.O.C.	Male		V	V		V	V	V
Lu, Kao-Liang	R.O.C.	Male		V					V
Hsu, Chia-Hung	R.O.C.	Male	V		V		V	V	V	V
Hsieh, Jun-Chien	R.O.C.	Male	V		V		V	V	V
Lin, Chih-Chen	R.O.C.	Male		V				V
Fang, Hsueh-Chen	R.O.C.	Female		V					V
Chang Shu-Chuan	R.O.C.	Female	V							V

Directors

Implementation of board diversity:

Note: Board diversity: Describe the board’s diversified policy, goals and achievements. The diversity policy includes, but is not limited to, the selection criteria of directors. The board of directors shall have professional qualifications and experience, and matters of gender, age, nationality and cultural background. In addition, the Company's specific goals and achievement are described in the aforementioned policy.

If the number of directors of the same gender on the board of directors of the Company is less than 1/3, the Company shall state the reasons and the measures to be taken to improve the gender diversity of the board of directors.

Reasons: The company has nine seats on the board of directors according to its articles of association. There have two female directors. Although this is in compliance with the relevant laws and regulations at the time, it still does not reach 1/3. Due to the unique characteristics and trends of the company's industry, it is not easy to find talents in a short period of time.
Measures to be taken: Before the re-election of the board of directors at the end of its term, seek recommendations of talents from various channels such as industry or schools to improve the effectiveness of corporate governance and implement the policy of diversification of board members.

(II) Board independence:

The Company’s board of directors has three independent directors, representing 33% of the total number of board members. The Company’s directors and independent directors have not violated Paragraphs 3 and 4, Article 26-3 of the Securities and Exchange Act, and there are no managers, directors who are relatives within the second degree of kinship with each other.

Note: Describe the number and proportion of independent directors, and the independence of the board of directors. Explain, with reasons, whether there were any violations of Paragraphs 3 and 4, Article 26-3 of the Securities and Exchange Act, and whether there are managers, directors who are relatives within the second degree of kinship with each other.

Note 1: Professional qualifications and experience:

(1) Description of the professional qualifications and experience of individual directors;

(2) For audit committee members with accounting or financial expertise, please describe the professional background and work experience related to accounting or finance,

(3) Explain whether or not have been a person of any conditions defined in Article 30 of the Company Act.

Note 2: (1) The independence of the independent director must be disclosed, including but not limited to whether the independent director, a spouse, relative within the second degree of kinship are designated as representative to serve as the Company’s director or supervisor;

(2) Current number of shares and shareholding of the shareholder, spouse and relative within the second degree of kinship (or in the name of others)

(3) Whether or not serve as a director, supervisor, or employee in the Company or any entity that has a certain relationship with the Company (refer to Article 3, Paragraph 1, Subparagraphs 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies);

(4) Cumulative compensation by providing commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the past 2 years.

Note 3: For disclosure methods, please refer to the Sample Annual Report on the official website of the Corporate Governance Center of Taiwan Stock Exchange Corporation

11 -

(II) Information on the Company's General Manager, Vice General Manager, Assistant General Managers of all the Company's Divisions and Branch Units
April 17 2026 Units: Thousand shares; %

Title	Nationality	Name	Gender	Date Elected	Shareholding		Spouse & Minor Shareholding		Current Shareholding in the name of others		Educational background and experience	Concurrent positions at other companies	Managers who are spouses or within two degrees of kinship			Remark
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
General Manager	R.O.C.	Chang, Wen-Tung	Male	2007-12-12	4,018	3.30	1,210	0.99	-	-	Department of Business Administration, Chihlee University of Technology Production Manager of Shinying Industrial Co., Ltd. Vice General Manager of Coxon Precise Industrial Co., Ltd. Chairman of Coxon Precise Industrial Co., Ltd.	Director of Cheng Yee Enterprise Co. Ltd., Samoa Director of Hang Yuan Enterprise Ltd., Samoa Director of Coxon Industry Ltd., Samoa Director of Coxon Social Charitable Foundation Director of Coxon Industry (Changshu) Co., Ltd. Director of Changshu Huaxon Industry Co., Ltd. Chairman and General Manager of Sinxon Plastic (Dong Guan) Ltd.	-	-	-	-
Vice General Manager	R.O.C.	Hsu, Chia-Hung	Male	2007-12-12	144	0.12	-	-	-	-	Department of Accounting, National Taiwan University Account examiner of KPMG Assistant Manager of Underwriting Department, Taiwan International Securities Corporation Financial Manager of Kunshan Factory, Hold Jinn Electronics Co., Ltd.	Director of Coxon Industry (Changshu) Co., Ltd. Supervisor of Sinxon Plastic (Dong Guan) Ltd.	-	-	-	-
Vice General Manager	R.O.C.	Hsieh, Jen-Chien	Male	2020-10-01	-	-	19	0.02	-	-	Industrial Engineering and Management, National Kaohsiung University of Science and Technology Department Head of Fengyi Electronics	Director of Sinxon Plastic (Dong Guan) Ltd.	-	-	-	-
Vice General Manager	R.O.C.	LIU,CHIN-MAN	Male	2026-01-01	-	-	-	-	-	-	Graduated from the Department of Mechanical Engineering, Ching Yun University of Science and Technology	Director of Coxon Industry (Changshu) Co., Ltd.

II. Remuneration Paid During the Most Recent Fiscal Year to Directors, General Manager, and Vice General Manager

Remuneration Paid to Directors, Independent Directors, General Manager, and Vice General Manager

Remuneration Paid to Directors, Independent Directors (Disclose the Name of Each Individual and the Corresponding Remuneration Amount) Units: NT$thousand; thousand shares; %

Title	Name	Remuneration for directors							Ratio of Total Remuneration (A+B+C+D) to Net income (%) (Note 10)	Relevant remuneration received by directors who are also employees								Ratio of total compensation (A+B+C+D+E+F+G) to net income (%) (Note 10)	Compensation paid to directors from an invested company other than the Company's subsidiary or parent company (Note 11)
		Base Compensation (A) (Note 2)		Severance Pay (B)		Directors Compensation (C) (Note 3)		Allowances (D) (Note 4)				Salary, Bonuses and Allowances (E) (Note 5)		Severance Pay (F)		Employee Compensation (G) (Note 6)
		Company	All companies in the consolidated financial statement (Note 7)	Company	All companies in the consolidated financial statement (Note 7)	Company	All companies in the consolidated financial statement (Note 7)	Company	All companies in the consolidated financial statement (Note 7)	Company		All companies in the consolidated financial statement (Note 7)		Company	All companies in the consolidated financial statement (Note 7)	Company		All companies in the consolidated financial statement (Note 7)		Company		All companies in the consolidated financial statement (Note 7)
										Total	%	Total	%			Total	%	Total		%	Total	%
Chairman	Hong, Huan-Ching	0	0	0	0	0	0	0	0	0.0000	0	0.0000	457	1,984	0	0	0	0	0	0	457	20.6646	1,984	89.8129
Vice Chairman	Wu, Wan-Hsiang	0	0	0	0	0	0	0	0	0.0000	0	0.0000	94	94	0	0	0	0	0	0	94	4.2723	94	4.2723
Director	Chang, Wen-Tung	0	0	0	0	0	0	0	0	0.0000	0	0.0000	280	280	0	0	0	0	0	0	280	12.6703	280	12.6703
Director	Lu, Kso-Liang	0	0	0	0	0	0	30	30	1.3577	30	1.3577	0	0	0	0	0	0	0	0	30	1.3577	30	1.3577
Director	Hsu, Chia-Hung	0	0	0	0	0	0	0	0	0.0000	0	0.0000	1,926	1,926	35	35	0	0	0	0	1,961	88.7442	1,961	88.7442
Director	Hsieh, Jen-Chien	0	0	0	0	0	0	0	0	0.0000	0	0.0000	1,292	2,206	40	40	0	0	0	0	1,332	60.2718	2,246	101.6377
Independent Director (Note1)r	Chen, Ming-Dor	210	210	0	0	0	0	10	10	220	9.9566	220	9.9566	0	0	0	0	0	0	0	220	9.9566	220	9.9566
Independent Director (Note1)	Wu, Tang-Yuan	210	210	0	0	0	0	10	10	220	9.9566	220	9.9566	0	0	0	0	0	0	0	220	9.9566	220	9.9566
Independent Director	Lin, Chih-Chen	390	390	0	0	0	0	30	30	420	19.0081	420	19.0081	0	0	0	0	0	0	0	420	19.0081	420	19.0081
Independent Director (Note1)	Fang, Hsueh-Chen	180	180	0	0	0	0	20	20	200	9.0515	200	9.0515	0	0	0	0	0	0	0	200	9.0515	200	9.0515
Independent Director (Note1)	Chang, Shu-Chuan	180	180	0	0	0	0	20	20	200	9.0515	200	9.0515	0	0	0	0	0	0	0	200	9.0515	200	9.0515
	Total	1,170	1,170	0	0	0	0	120	120	1,290	58.3821	1,290	58.3821	4,049	6,490	75	75	0	0	0	5,414	245.0052	7,855	355.5194

14 -
lease explain the policy, system, standards and structure by which director and independent director compensation is paid, and association between the amount paid and independent directors' responsibilities, risks and time committed;
The Company's remuneration policy for directors and independent directors not only refers to the general payment standard in the industry, but also considers the participation of individual independent directors in policy promotion, the Company's remuneration for similar job position in recent years, the reasonableness of the relationship between the Company's financial status, operating performance, Sustainable development and future risks. In addition, the Company also timely review and discuss the remuneration policy based on the actual business conditions and relevant laws and regulations.
Compensation received by directors for providing service (e.g. consultancy service without the title of an employee in the parent company/any company included in the financial statements/any business investment) in the last year except those disclosed in the above table. Note.

Note 1: The original independent directors Chen, Ming-Der and Wu, Teng-Tsan were dismissed on June 26, 2025; on June 26, 2025, the shareholders' meeting approved the election of Fang, Hsueh-Chen and Chang Shu-Chuan as new independent directors.

Note 2: there were no resignation or retirement of directors in 2025, and the above-mentioned severance pay only covers the Company's contribution to employee's pension account in 2025, not actual amount paid.

Note 3: For the Company's business execution expenses, only traveling expenses were paid this year.

Range of Remuneration

Range of remuneration paid to directors	Name of director
	Total of (A+B+C+D)		Total of (A+B+C+D+E+F+G)
	Company (Note 8)	All companies in the consolidated financial statement (H) (Note 9)	Company (Note 8)	All companies in the consolidated financial statement (J) (Note 9)
Below NT$1,000,000	Hong, Huan-Ching, Wu, Wen-Hsiang, Chang, Wen-Tung, Hsieh, Jen-Chien, Hsu, Chia-Hung, Chen, Ming-Der, Wu, Teng-Tsan, Lu, Kuo-Liang, Lin, Chih-Chen, Fang, Hsueh-Chen, Chang, Shu-Chuan	Hong, Huan-Ching, Wu, Wen-Hsiang, Chang, Wen-Tung, Hsieh, Jen-Chien, Hsu, Chia-Hung, Chen, Ming-Der, Wu, Teng-Tsan, Lu, Kuo-Liang, Lin, Chih-Chen, Fang, Hsueh-Chen, Chang, Shu-Chuan	Hong, Huan-Ching, Wu, Wen-Hsiang, Chang, Wen-Tung, Chen, Ming-Der, Wu, Teng-Tsan, Lu, Kuo-Liang, Lin, Chih-Chen, Fang, Hsueh-Chen, Chang, Shu-Chuan	Wu, Wen-Hsiang Chang, Wen-Tung and Chen, Ming-Der, Wu, Teng-Tsan, Lu, Kuo-Liang and Lin, Chih-Chen, Fang, Hsueh-Chen, Chang, Shu-Chuan
NT$1,000,000 (included) ~ NT$2,000,000 (excluded)	-	-	Hsu, Chia-Hung Hsieh, Jen-Chien	Hong, Huan-Ching, Hsu, Chia-Hung
NT$2,000,000 (included) ~ NT$3,500,000 (excluded)	-	-	-	Hsieh, Jen-Chien -
NT$3,500,000 (included) ~ NT$5,000,000 (excluded)	-	-	-	-
NT$5,000,000 (included) ~ NT$10,000,000 (excluded)	-	-	-	-
NT$10,000,000 (included) ~ NT$15,000,000 (excluded)	-	-	-	-
NT$15,000,000 (included) ~ NT$30,000,000 (excluded)	-	-	-	-
NT$30,000,000 (included) ~ NT$50,000,000 (excluded)	-	-	-	-
NT$50,000,000 (included) ~ NT$100,000,000 (excluded)	-	-	-	-
Over NT$100,000,000	-	-	-	-
Total	11	11	11	11

Note 1: The names of directors should be separately listed.
Note 2: The remuneration of directors in the most recent fiscal year (including directors' salary, professional allowance, severance pay, various awards and bonuses).
Note 3: The amount of directors' remuneration distributed by the board of directors in the most recent year.
Note 4: The relevant business execution expenses of directors in the most recent year (such as traveling expenses, special expenses, various allowances, housing expenses, car and other physical supplies). In the case of expenditures of housing, motor vehicles and other means of transport or for exclusive individuals, the nature and cost of the assets, the actual or fair market price, rents, fuel cost and other payments should be disclosed. If there is a driver, please note the Company's payment for the driver without remuneration.
Note 5: The salary, professional allowance, severance pay, various awards and bonuses, traveling expenses, special expenses, various allowances, housing expenses, car and other physical supplies of the directors as concurrent employees in most recent years (including concurrent general manager, assistant general manager, other managers and employees). In the case of expenditures of housing, motor vehicles and other means of transport or for exclusive individuals, the nature and cost of the assets, the actual or fair market price, rents, fuel cost and other payments should be disclosed. If there is a driver, please note the Company's payment for the driver without remuneration. The salary expenses recognized in accordance with the "Share-based payment" of IFRS 2, which includes obtaining employee stock option certificates, new restricted employee shares and participating in the subscription shares of cash capital increase, shall also be included in the remuneration.
Note 6: The directors as concurrent employees in most recent years (including concurrent general manager, assistant general manager, other managers and employees) who obtain employee compensation (including stocks and cash), and should disclose the amount of compensation paid by the board of directors in the most recent year. If it cannot be estimated, the proposed distribution amount for this year will be calculated based on the proportion of the actual distribution amount last year, and should be added to table (1-3).
Note 7: The total amount of emoluments paid by all companies (including the Company) to the Company's directors should be disclosed.
Note 8: The table shows the total amount of each director's remuneration paid by the Company, and exposes the name of the director in the ownership rank.
Note 9: The total remuneration of each director of all the companies (including the Company) in the consolidated report should be disclosed, and the name of the director should be exposed in the ownership rank.
Note 10: The "net profit after tax" is the after tax net profit of an individual or an individual financial report in the most recent year.
Note 11: a. This column should clearly state the amount of remuneration for directors of the Company to receive the remuneration from re-invested companies other than its subsidiaries or the parent company (fill in "none" if there are no relevant remuneration).
b. If the director of the Company receives remuneration from re-invested companies other than its subsidiaries or parent company, the director shall incorporate the remuneration into the "I" column of the remuneration scale, and change the name of the column to "parent company and all re-invested companies".
c. Remuneration is the bonus (including bonuses of employees, directors and supervisors) and business execution expenses of the when the directors of the Company serve as directors, supervisors or managers of the re-invested companies or parent company other than its subsidiaries.

Remuneration for the General Manager and Vice General Manager
Units: NT\$thousand; thousand shares; %

Title	Name	Salary (A) (Note 2)		Severance Pay (B)		Bonuses and Allowances (C) (Note 3)		Profit Sharing- Employee Bonus (D) (Note 4)				Ratio of Total Remuneration (A+B+C+D) to Net income (%) (Note 8)				Is there any remuneration received from the subsidiary for reinvestment business (Note 9)
		Company	All companies in the consolidated financial statement (Note 4)	Company	All companies in the consolidated financial statement (Note 4)	Company	All companies in the consolidated financial statement (Note 4)	Company		All companies in the consolidated financial statement (Note 4)		Company		All companies in the consolidated financial statement
								Cash	Stock	Cash	Stock	Total	%	Total	%
General Manager	Chang, Wen-Tung	280	280	0(Note 1)	0(Note 1)	0	0	0	0	0	0	280	12.6703	280	12.6703	None
Vice General Manager	Hsu, Chia-Hung	1,926	1,961	35	35	0	0	0	0	0	0	1,961	88.7442	1,961	88.7442	None
Vice General Manager	Hsieh, Jen-Chien	1,292	2,246	40	40	0	0	0	0	0	0	1,332	60.2718	2,246	101.6377	None
	Total	3,498	4,487	75	75	0	0	0	0	0	0	3,573	161.6863	4,487	203.0522

Note 1: Therefore, the above-mentioned severance pay only covers the Company's contribution to employee's pension account in 2025, not actual amount paid.

Range of Remuneration

Range of Remuneration for the General Manager and Vice General Manager	Name of General Manager and Vice General Manager
	Company (Note 6)	All companies in the consolidated financial statement (Note 7)
Below NT$1,000,000	Chang, Wen-Tung	Chang, Wen-Tung
NT$1,000,000 (included) ~ NT$2,000,000 (excluded)	Hsu, Chia-Hung and Hsieh, Jen-Chien	Hsu, Chia-Hung
NT$2,000,000 (included) ~ NT$3,500,000 (excluded)	-	Hsieh, Jen-Chien
NT$3,500,000 (included) ~ NT$5,000,000 (excluded)	-	-
NT$5,000,000 (included) ~ NT$10,000,000 (excluded)	-	-
NT$10,000,000 (included) ~ NT$15,000,000 (excluded)	-	-
NT$15,000,000 (included) ~ NT$30,000,000 (excluded)	-	-
NT$30,000,000 (included) ~ NT$50,000,000 (excluded)	-	-
NT$50,000,000 (included) ~ NT$100,000,000 (excluded)	-	-
Over NT$100,000,000	-	-
Total	3	3

Note 1: The names of General Manager and Vice General Manager should be separately listed.
Note 2: The salary, professional allowance, and severance pay of the General Manager and Vice General Manager in the most recent fiscal year.
Note 3: The traveling expenses, special expenses, various allowances, housing expenses, car and other physical supplies of the General Manager and Vice General Manager in the most recent fiscal year. In the case of expenditures of housing, motor vehicles and other means of transport or for exclusive individuals, the nature and cost of the assets, the actual or fair market price, rents, fuel cost and other payments should be disclosed. If there is a driver, please note the Company's payment for the driver without remuneration. The salary expenses recognized in accordance with the "Share-based payment" of IFRS 2, which includes obtaining employee stock option certificates, new restricted employee shares and participating in the subscription shares of cash capital increase, shall also be included in the remuneration.
Note 4: The amount of employee compensation for the General Manager and Vice General Manager paid by the board of directors in the most recent fiscal year (including stocks and cash). If it cannot be estimated, the proposed distribution amount for this year will be calculated based on the proportion of the actual distribution amount last year.
Note 5: The total amount of emoluments paid by all companies (including the Company) to the Company's General Manager and Vice General Manager should be disclosed.
Note 6: The total remuneration of the each of the General Manager and Vice General Manager of the Company should be disclosed, and the name of the General Manager and Vice General Manager should be exposed in the ownership rank.
Note 7: The total remuneration of the each of the General Manager and Vice General Manager of all the companies (including the Company) in the consolidated report should be disclosed, and the name of the General Manager and Vice General Manager should be exposed in the ownership rank.
Note 8: The "net profit after tax" is the after tax net profit of an individual or an individual financial report in the most recent year.
Note 9: a. This column should clearly indicate the amount of remuneration received by the general manager and vice general manager of the Company from the subsidiary's outbound investment business or the parent company (if there is none, please fill in "None").
b. If the General Manager and Vice General Manager of the Company receives remuneration from re-invested companies other than its subsidiaries or parent company, the General Manager and Vice General Manager shall incorporate the remuneration into the "I" column of the remuneration scale, and change the name of the column to "parent company and all re-invested companies".
c. Remuneration is the bonus (including bonuses of employees, directors and supervisors) and business execution expenses of the when the General Manager and Vice General Manager of the Company serve as directors, supervisors or managers of the re-invested companies or parent company other than its subsidiaries.

Remuneration for the five highest paid executives

Units: NT\$thousand; thousand shares; %

Title	Name	Salary (A) (Note 2)		Severance Pay (B)		Bonuses and Allowances (C) (Note 3)		Profit Sharing- Employee Bonus (D) (Note 4)				Ratio of Total Remuneration (A+B+C+D) to Net income (%) (Note 6)				Is there any remuneration received from the subsidiary for reinvestment business (Note 7)
		Company	All companies in the consolidated financial statement (Note 5)	Stock	All companies in the consolidated financial statement (Note 5)	Stock	All companies in the consolidated financial statement (Note 5)	Company		All companies in the consolidated financial statement (Note 5)		Company		All companies in the consolidated financial statement
								Cash	Stock	Cash	Stock	Total	%	Total	%
Chairman	Hong, Huan-Ching	457	1,984	0	0	0	0	0	0	0	0	457	20.6646	1,984	89.8129	None
Vice Chairman	Wu, Wen-Hsiang	94	94	0	0	0	0	0	0	0	0	94	4.2723	94	4.2723	None
General Manager	Cheng, Wen-Tung	280	280	0	0	0	0	0	0	0	0	280	12.6703	280	12.6703	None
Vice General Manager	Hsu, Chia-Hung	1,926	1,926	35	35	0	0	0	0	0	0	1,961	88.7442	1,961	88.7442	None
Vice General Manager	Hsieh, Jen-Chien	1,292	2,206	40	40	0	0	0	0	0	0	1,332	60.2718	2,246	101.6377	None
	Total	4,049	6,490	75	75	0	0	0	0	0	0	4,124	186.6232	6,565	297.1374

Note 1: The term "five highest paid executives" refers to the Company's managers, which are identified according to the scope of "Managers" stipulated in Tai-Tsai-Zheng-Zi No. 0920001301 issued by the Securities and Futures Commission of the Ministry of Finance on March 27, 2003. The principles related to the calculation and determination of the "five highest paid executives" are based on the salaries, severance pay, bonuses and allowances received by managers from all companies in the consolidated financial statement, as well as the total amount of employee compensation (A+B+C+D), and the top five executives with the highest remuneration will be determined accordingly. Please fill in any director that concurrently serves as the aforementioned managers.
Note 2: The salary, professional allowance, and severance pay of the five highest paid executives in the most recent fiscal year.
Note 3: The traveling expenses, special expenses, various allowances, housing expenses, car and other physical supplies of the five highest paid executives in the most recent fiscal year. In the case of expenditures of housing, motor vehicles and other means of transport or for exclusive individuals, the nature and cost of the assets, the actual or fair market price, rents, fuel cost and other payments should be disclosed. If there is a driver, please note the Company's payment for the driver without remuneration. The salary expenses recognized in accordance with the "Share-based payment" of IFRS 2, which includes obtaining employee stock option certificates, new restricted employee shares and participating in the subscription shares of cash capital increase, shall also be included in the remuneration.
Note 4: The amount of employee compensation for the five highest paid executives paid by the board of directors in the most recent fiscal year (including stocks and cash). If it cannot be estimated, the proposed distribution amount for this year will be calculated based on the proportion of the actual distribution amount last year.
Note 5: The total amount of emoluments paid by all companies (including the Company) to the Company's five highest paid executives should be disclosed.
Note 6: The "net profit after tax" is the after tax net profit of an individual or an individual financial report in the most recent year.
Note 7: a. This column should clearly indicate the amount of remuneration received by the five highest paid executives of the Company from the subsidiary's outsourced investment business or the parent company (if there is none, please fill in "None").
b. Remuneration is the bonus (including bonuses of employees, directors and supervisors) and business execution expenses of the when the five highest paid executives of the Company serve as directors, supervisors or managers of the re-invested companies or parent company other than its subsidiaries.
Note 8: Therefore, the above retirement pension only covers the Company's contribution to employee's pension account in 2025, not actual amount paid.

Employees' Profit Sharing Bonus Paid to Management Team(The date of publication of the annual report has not yet been approved)

Units: NT\$thousand

	Title	Name	Stock	Cash	Total	Ratio of Total Remuneration to Net Income (%)
Managerial Officer	Chairman	Hong, Huan-Ching	0	0	0	0%
	Vice Chairman	Wu, Wen-Hsiang
	General Manager	Chang, Wen-Tung
	Vice General Manager	Hsu, Chia-Hung
	Vice General Manager	Hsieh, Jen-Chien

Analysis of the proportion of the total remuneration of directors, general managers and vice general managers of the Company paid by the Company and all companies in the consolidated financial statement to net profit /loss after tax in individual financial statements of the recent two years. Explanation of remuneration policies, standards and packages, the procedure for determining remuneration, and its linkage to operating performance and future risk exposure:

(1) Analysis of the proportion of the total remuneration of directors, general managers and vice general managers of the Company paid by the Company and all companies in the consolidated financial statement to net profit /loss after tax in individual financial statements of the recent two years:

Units: NT\$thousand

Year\Item	Total remuneration paid				To the Company's net income (%)		To the net income/loss of all the companies in the consolidated financial statement (%)
	2025	2025 All companies in the consolidated financial statement	2024	2024 All companies in the consolidated financial statement	2025	2024	2025	2024
Director	1,841	3,369	2,221	3,091	83.32	10.86	152.47	15.11
General Manager and Vice General Manager	3,573	4,487	3,590	4,532	161.69	17.55	203.05	22.16

Note: As part of the directors were concurrent managers, the columns of each director, general manager and vice general manager in this table are summed up according to the job titles.

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

(I) Remuneration policies, standards and packages:

(1) The distribution of the remuneration of directors according to the Company's Articles of Incorporation: For the Company's policy related the remuneration of directors, according to Article 30 of the Company's Articles of Incorporation, the Company shall distribute no more than 3% of company profits as the remuneration of directors by cash, taking into account the Company's operating results and the directors' contribution to the Company's business performance. The Company conducts director and peer evaluation, and performance evaluation of the board every year, and evaluates board performance on a regular basis.

(2) Remuneration policy to general manager and vice general managers: Remuneration is paid according to the Company's Salary Management Guidelines and the salary standard of industry peers, the scope, duties and responsibilities of the job position, and contributions to the Company's business goals.

(3) The Company's remuneration packages as determined by the Compensation committee, which shall be paid after the resolution of the board. The scope shall comply with the remuneration for directors and managers as stipulated in the Regulations Governing Information to be Published in Annual Reports.

(II) Procedures for determining remuneration:

(1) The Company evaluates the remuneration for directors and managers on a regular basis according to the Company's Rules for Performance Evaluation of the Board of Directors and the Regulations for Performance Evaluation applicable for managers and employees. The performance evaluation standards of the Chairman and General Manager are based on the results of operating indicators related to company operations, governance and financial results, Sustainable development. The evaluation scope covers performance targets including pre-tax profit, customer satisfaction, corporate governance, business management, internal control and quality assurance. The scope of the managers' performance evaluation includes: leadership, management skills, professional learning skills, cooperation and communication skills, proactiveness, sense of responsibility, and loyalty.

(2) The company made a slight profit in 2025. After deliberation by the company's Remuneration Committee and resolution of the Board of Directors, it is proposed not to include directors' remuneration.

(3) The Company's performance evaluation and reasonableness of the remuneration for the directors and managers are reviewed by the Compensation committee and board of directors on a regular basis. The procedures for setting the remuneration complies with the "policies and systems for the remuneration of managers", evaluating individual manager's performance with reference to the standard payment level of industry peers, and taking into account the participation of managers, Sustainable development, the responsibilities, and achievements, as well as the Company's profitability, and operating efficiency, so as to provide reasonable remuneration. Given that the Company encountered income in 2025, the managers will receive employee compensation.

(III) Linkage to operating performance and future risk:

(1) The Company's remuneration payment standards and systems are mainly based on the Company's overall operating conditions, and are determined according to the performance achievement rate and contributions,

in order to improve the overall effectiveness of the board and management departments. The Company also refers to the salary standard in the industry, so as to ensure the competitiveness of the Company's management, and retain excellent management talents.

(2) To sum up, the remunerations of the directors and managers in 2025 were at standard levels, while the amount for each individual directors or manager as a percentage to the Company's net profit and all companies in the consolidated statement were below 3%. According to the operating performance, the remuneration level shall be roughly equivalent compared to historical results, and no higher than that in the previous year, which is reasonable and no higher than the remuneration standard of industry peers. Since we expect that there will be no impact on the Company's final performance, we believe that there is no need for risk assessment.

(3) Achievement of performance goals

The performance evaluation of the board in 2025 was 98 points (out of 100 points), and all directors completed the training hours throughout the year, while the attendance of directors was 100% (including in-person and by proxy), which was fairly successful.

19 -

III. The State of the Company's Implementation of Corporate Governance

(I) The state of operations of the board of directors

The state of operations of the board of directors

Five meetings (A) were held by the Board of Directors in the most recent fiscal year (from April 1, 2025 to March 31, 2026). The attendance of directors is shown below:

Title	Name	In person Attendance (B)	In person Attendance Rate (%) (B/A)	Remark
Chairman	Hong, Huan-Ching	6	100	Reappointed; elected on June 14, 2022
Vice Chairman	Wu, Wen-Hsiang	6	100	Reappointed; elected on June 14, 2022
Director	Chang, Wen-Tung	6	100	Reappointed; elected on June 14, 2022
Director	Lu, Kuo-Liang	6	100	Took office; elected on June 14, 2022
Director	Hsu, Chia-Hung	6	100	Reappointed; elected on June 14, 2022
Director	Hsieh, Jen-Chien	6	100	Took office; elected on June 14, 2022
Independent Director	Chen, Ming-Der	1	17	Dismissal on June 26, 2025 upon expiry of term
Independent Director	Wu, Teng-Tsan	1	17	Dismissal on June 26, 2025 upon expiry of term
Independent Director	Lin, Chih-Chen	6	100	Took office; elected on June 14, 2022
Independent Director	Fang, Hsueh-Chen	5	83	Newly elected, on June 26, 2025.
Independent Director	Chang, Shu-Chuan	5	83	Newly elected, on June 26, 2025.

Attendance of the independent directors
◎: In-person; ◆: By proxy; ★: Not attended

Number of board meetings and meeting date	1st meeting 2025/05/13	2nd meeting 2025/06/26	3rd meeting 2025/08/12	4th meeting 2025/11/13	5th meeting 2025/12/23	6th meeting 2026/03/12
Wu, Teng-Tsan	◎	-	-	-	-	-
Chen, Ming-Der	◎	-	-	-	-	-
Lin, Chih-Chen	◎	◎	◎	◎	◎	◎
Fang, Hsueh-Chen	-	◎	◎	◎	◎	◎
Chang, Shu-Chuan	-	◎	◎	◎	◎	◎

Other matters to be recorded:

I. Qualified opinion from Independent Directors:

Meeting Date, Period	Content	Matters specified in Article 14.3 of the Taiwan Securities and Exchange Act	Opinions of all independent directors: No opinion/objective opinion/qualified opinion	The Company's response to all independent directors' opinions	Resolutions
2st meeting of the 14th term board of directors 2025/08/12	Appointment of he Compensation committee members	V	None	None	The Independent Directors to recuse oneself to avoid conflicts of interest, Approved by all directors with no dissenting opinion

21 -

| 3st meeting of the 14th term board of directors 2025/11/13 | 1. Independent Directors' Remuneration Proposal
2. Defining the Scope and Scope of "Junior Staff" and Revising Related "Internal Control Systems" Proposal
3. Establishing the "Sustainability Development Committee Organizational Regulations" Proposal
4. Appointing Members of the Sustainability Development Committee Proposal | V | None | None | Except for individual directors and independent directors in cases one and four to recuse oneself to avoid conflicts of interest, Approved by all directors with no dissenting opinion |
| --- | --- | --- | --- | --- | --- |
| 4st meeting of the 14th term board of directors 2025/12/23 | Revising Related "Internal Control Systems" Proposal | V | None | None | Approved by all directors with no dissenting opinion |
| 5st meeting of the 14th term board of directors 2026/03/12 | Appointment of Visa Accountant | V | None | None | Approved by all directors with no dissenting opinion |

Unless otherwise stated, other Independent Directors who expressed opposition or qualified opinions that were recorded or declared in writing, the Independent Director's name, meeting content, and reason for avoiding conflict of interest and participation in the voting process must be properly recorded: None.

II. To avoid conflict of interest among directors, the Director's name, meeting content, and reason for avoiding conflict of interest and participation in the voting process must be properly recorded: None.

III. Execution of Performance Evaluation of the Board and Functional Committees:

Assessment cycle	Assessment duration	Scope of assessment	Assessment method	Assessment details
Once every year	Evaluation of board performance from January 1, 2025 to December 31, 2025	Board of directors, individual board members	Performance evaluation of the board, self-evaluation by individual board members, and peer evaluation	The performance evaluation of the board includes two major aspects and 10 evaluation items. The scores are evaluated according to the actual implementation status.
1. Legal compliance (6 questions in total): 58 points out of 60 points.
2. Participation in the Company's operations (4 questions in total): 40 points out of 40 points.
The board self-evaluation questionnaires cover 9 aspects and 34 evaluation items, and 8 individual board members shall answer the questions.
1. Company goals and tasks (3 questions in total): Positive feedback by all members.
2. Internal control and risks (2 questions in total): Positive feedback by all members.
3. Internal relationship management (2 questions in total): Positive feedback by all members.
4. External relationship management (2 questions in total): Positive feedback by all members.
5. Board composition and function (4 questions in total): Positive feedback by all members.
6. Board culture (2 questions in total): Positive feedback by all members.
7. Board operations (7 questions in total): Positive feedback by all members.
8. Chairman/Chairperson (4 questions in total): Positive feedback by all members.
9. Self-evaluation of board members (8 questions in total): Positive feedback by all members.
There are a total of 7 evaluation items in the peer evaluation questionnaire, and 9 individual board members shall answer the questions, with positive feedback by all members.	Positive feedback by all 9 members.
Once every year	Evaluation of the Compensation committee from January 1, 2025 to	Compensation committee	Self-evaluation of the Compensation committee	The Self-Evaluation Questionnaire of the Compensation committee includes four aspects and 19 assessment items, which are self-assessed by 3 members.
1. Participation in the Company's operations (4 questions in total): Positive feedback by all members.
2. Accountability of the Compensation committee (5 questions in total): Positive feedback by all members.	Positive feedback by all 3 members.

	December 31, 2025			questions in total): Positive feedback by all members. 3. Decision-making quality of Compensation committee (7 questions in total): Positive feedback by all members. 4. Composition of the Compensation committee and the selection of committee members (3 questions in total): Positive feedback by all members.
Once every year	Evaluation of the Audit Committee from January 1, 2025 to December 31, 2025	Audit Committee	Self-evaluation of the Audit Committee	The Audit Committee self-evaluation questionnaires cover 6 aspects and 22 evaluation items, and 3 individual members shall answer the questions. 1. Participation in the Company's operations (4 questions in total): Positive feedback by all members. 2. Accountability of the Audit Committee (5 questions in total): Positive feedback by all members. 3. Decision-making quality of Audit Committee (4 questions in total): Positive feedback by all members. 4. Participation in the Company's operations (3 questions in total): Positive feedback by all members. 5. Composition of the Audit Committee and the selection of committee members (3 questions in total): Positive feedback by all members. 6. Internal control (3 questions in total): Positive feedback by all members.	Positive feedback by all 3 members.
Once every year	Evaluation of the Sustainable Development Committee from November 13, 2025 to December 31, 2025	Sustainable Development Committee	Self-evaluation of the Audit Committee	Evaluation of the Sustainable Development Committee self-evaluation questionnaires cover 4 aspects and 10 evaluation items, and 3 individual members shall answer the questions. 1. Participation in the Company's operations (3 questions in total): Positive feedback by all members. 2. Accountability of the Audit Committee (3 questions in total): Positive feedback by all members. 3. Decision-making quality of Audit Committee (3 questions in total): Positive feedback by all members. 4. Composition of the Audit Committee and the selection of committee members (3 questions in total): Positive feedback by all members.	Positive feedback by all 3 members.
The results of this year's performance evaluation show positive feedback on the efficiency and operations of the Board, Compensation committee, Audit Committee and Sustainable Development Committee, with sound operations and functions.
IV. Strengthening the functions of the board in the current and recent fiscal years (e.g. establishing the Audit Committee, promoting information transparency, etc.) and conducting performance assessment: The Company has formulated the "Procedures for Board of Directors Meetings" in accordance with the "Regulations Governing Procedure for Board of Directors Meetings of Public Companies", and the attendance of directors at the board of directors was disclosed on the MOPS, while the major resolutions of the board of directors were disclosed on the Company's official website. In addition, the Company established a Compensation committee in October 2011, which is responsible for conducting evaluations and formulating the Company's overall remuneration policies on a regular basis, and formulating and reviewing the performance evaluation and policies, systems, standard and structure of the remuneration for directors and managers on a regular basis (at least once a year). Setting the remuneration for directors and managers, employee compensation or other incentive plans, with regular assessment. In June 2022, the Company has established an Audit Committee, which is composed of professionals, and has actively participated in company operations and internal relationship management, in order to achieve better business operations. In November 2025, a Sustainable Development Committee was established to oversee the company's operations in sustainable information management, environmental development assessments, and greenhouse gas inventory, and the overall operation has been successful.
V. Recommendations for improvement and the improvement plan for the future: The Company to with shareholders in an efficient manner to ascertain shareholders' views and concerns, and expound company policies explicitly, in order to gain shareholders' support. encouraging Company's directors to participate in such meetings. Measures to be adopted by the Comany: The Company will encouraging Company's directors to participate in such meetings.

(II) The state of operations of the Audit Committee

Meetings were held by the Audit Committee in 2025. The attendance of independent directors is shown below:

| Title | Name | In-person (B) | By proxy | In person Attendance Rate (%)
(B/A) (Note 1 and Note 2) | Remark |
| --- | --- | --- | --- | --- | --- |
| Independent Director a | Wu, Teng-Tsan | 1 | 0 | 17 | Dismissal on June 26, 2025 upon expiry of term |
| Independent Director b | Chen, Ming-Der | 1 | 0 | 17 | Dismissal on June 26, 2025 upon expiry of term |
| Independent Director c | Lin, Chih-Chen | 6 | 0 | 100 | Took office; re-elected on June 26, 2025 |
| Independent Director | Fang, Hsueh-Chen | 5 | 0 | 83 | Newly elected, on June 26, 2025. |
| Independent Director | Chang, Shu-Chuan | 5 | 0 | 83 | Newly elected, on June 26, 2025. |
| Other matters to be recorded:
I. During operations of the Board of Directors, the meeting date, period, content, objection, qualified opinion and resolution made by any independent director, resolutions of the audit committee and the Company’s response to all opinions of the audit committee.
A. Matters specified in Article 14.5 of the Securities and Exchange Act: | | | | | |
| Meeting Date | Content | | | Matters specified in Article 14.3 of the Securities and Exchange Act | Not approved by the Audit Committee, but obtained consent by two-thirds or more of all members of the board of directors |
| 2025/05/13 | (1) The Company’s consolidated financial statements for the 1st quarter of 2025 | | | V | None |
| | Resolution of the Audit Committee: Approved by all independent directors with no dissenting opinion. | | | | |
| | The Company’s response to all opinions of the Audit Committee: Approved by all attending directors and independent directors at the board of directors’ meeting. | | | | |
| 2025/08/12 | (1) The Company’s consolidated financial statements for the 2nd quarter of 2025 | | | V | None |
| | Resolution of the Audit Committee: Approved by all independent directors with no dissenting opinion. | | | | |
| | The Company’s response to all opinions of the Audit Committee: Approved by all attending directors and independent directors at the board of directors’ meeting. | | | | |
| 2025/11/13 | (1) The Company’s consolidated financial statements for the 3rd quarter of 2025 | | | V | None |
| | (2) Amendment of the Internal control system | | | V | None |
| | (3) Develop of the Sustainable Development Committee Organizational Regulations | | | V | None |
| | Resolution of the Audit Committee: Approved by all independent directors with no dissenting opinion. | | | | |
| | The Company’s response to all opinions of the Audit Committee: Approved by all attending directors and independent directors at the board of directors’ meeting. | | | | |
| 2025/12/23 | (1) Amendment of the Internal control system. | | | V | None |
| | Resolution of the Audit Committee: Approved by all independent directors with no dissenting opinion. | | | | |
| | The Company’s response to all opinions of the Audit Committee: Approved by all attending directors and independent directors at the board of directors’ meeting. | | | | |
| 2026/03/12 | (1) 2025 Business Report and Financial Statements | | | V | None |
| | (2) 2025 Deficit Compensation | | | V | None |
| | (3) 2025 Internal Control System Statement | | | V | None |
| | (4) Appointment of Visa Accountant | | | V | None |
| | (5) It is proposed to conduct private placement of ordinary shares. | | | V | None |
| | Resolution of the Audit Committee: Approved by all independent directors with no dissenting opinion. | | | | |
| | The Company’s response to all opinions of the Audit Committee: Approved by all attending directors and independent directors at the board of directors’ meeting. | | | | |

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B. Except for the matters stated above, any matter that has been adopted with the approval of two-thirds or more of all board directors without having been passed by the audit committee: None.

II. To avoid conflict of interest among independent directors, the Independent Director's name, meeting content, and reason for avoiding conflict of interest and participation in the voting process must be properly recorded: None.

III. Communication between independent directors and internal auditors (which should include audit materials, methods, and results pertaining to corporate finances and/or operations, etc.)

(1) Communication between independent directors and internal auditors

Date	Communication Method	Key Points of Communication	The suggestions of independent directors:	Communication results
2025/05/13	Audit Committee	•Report on the audit results in March 2025.	•Independent directors have no dissenting opinion to audit results of the Audit Office.	•The Audit Office has submitted the results to the Board.
2025/08/12	Audit Committee	•Report on the audit results in April -June 2025.	•Independent directors have no dissenting opinion to audit results of the Audit Office.	•The Audit Office has submitted the results to the Board.
2025/11/13	Audit Committee	•Report on the audit results in July-September 2025.	•Independent directors have no dissenting opinion to audit results of the Audit Office.	•The Audit Office has submitted the results to the Board.
2025/12/23	Audit Committee	•Report on the audit results in October-November 2025.	•Independent directors have no dissenting opinion to audit results of the Audit Office.	•The Audit Office has submitted the results to the Board.
2026/03/12	Audit Committee	•Report on the audit results in December 2025. and January 2026	•Independent directors have no dissenting opinion to audit results of the Audit Office.	•The Audit Office has submitted the results to the Board.

(2) Communication between independent directors and independent auditors

Date	Communication Method	Key Points of Communication	Communication results
2025/5/13	Audit Committee	•The independent accountants expressed views on the financial report for the first quarter of 2025.	•Approved by the board of directors, and announced and reported to the competent authority.
•There were no objections from independent directors.
2025/8/12	Audit Committee	•The independent accountants expressed views on the financial report for the second quarter of 2025.	•Approved by the board of directors, and announced and reported to the competent authority.
•There were no objections from independent directors.
2025/11/13	Audit Committee	•The independent accountants expressed views on the financial report for the third quarter of 2025.
•Accountants have provided audit results and communicate on corporate governance and remote working.	•Approved by the board of directors, and announced and reported to the competent authority.
•There were no objections from independent directors.
2026/03/12	Audit Committee	•The independent accountants expressed views on the financial report for 2025.
•Accountants have provided audit results and communicate on AQIs.	•Approved by the board of directors, and announced and reported to the competent authority.
•There were no objections from independent directors.

Note 1: The date of resignation is specified for independent directors who had resigned prior to the close of the financial year. The percentage of actual attendance (%) is calculated based on the number of audit committee meeting held and the number of actual attendance during active duty.

Note 2: If a re-election of independent directors had taken place prior to the close of the financial year, independent directors of both the previous and the current term are listed, in which case, the remarks column would specify the re-election date and whether the independent director was elected in the previous term, the new term, or both. Actual attendance rate (%) was calculated on the basis of the number of audit committee meetings held during each independent director's term and the number of meetings actually attended by that independent director.

(III) The state of the Company's implementation of corporate governance, any departure of such implementation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such departure:

Items	Implementation Status			Deviations from "the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Descriptions
I. Does the Company establish and disclose the Corporate Governance Best Practice Principles based on "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies"?	Yes	No	The Company has established the Corporate Governance Best Practice Principles and disclosed it on the Company website.	No difference.
II. Shareholding structure & shareholders' rights(I) Does the Company establish an internal operating procedure to deal with shareholders' suggestions, doubts, disputes and litigations, and implement based on the procedure?(II) Does the Company possess the list of its major shareholders as well as the ultimate owners of those shares?(III) Does the Company establish and execute the risk management and firewall system within its conglomerate structure?(IV) Does the Company establish internal rules against insiders trading with undisclosed information?	YesYesYesYesYes	(I) The Company has established a spokesman system, and has appointed personnel to handle relevant issues. The spokesman and deputy spokesman are responsible for dealing with shareholders' suggestions, doubts, concerns, disputes and litigations in accordance with the "Procedures for Handling Material Inside Information", and education and training of employees. The spokesman system will not arbitrarily speak to the public without any confirmation or authorization. In addition, the General Manager's office shall discuss shareholders' opinions, and the feasibility will be adjusted depending on the resolutions of the board of directors meeting. The mailbox received no complaints from stakeholders before the deadline. There were no disputes and litigations with shareholders, and the operations were implemented in accordance with the procedures.(II) The Company reports the changes in shareholdings of directors, managers and major shareholders holding more than 10% of shares of the Company on a monthly basis, and possess the list of its major shareholders as well as the ultimate owners of those shares.(III) The Company has formulated the Regulations Governing Subsidiary Supervision and Management and Regulations Governing the Transactions with Related Parties, Specified Companies and Groups, and its current operations are implemented accordingly. In addition, the Company also complies with relevant laws and regulations and the Company's internal control system, and review the signing of external contracts, loaning of funds, and endorsements/guarantees for risk management.(IV) The Company has established the Ethical Corporate Management Best Practice Principles, and has, in meetings on an irregular basis, advocated on not obtaining improper benefits by taking advantage of the employee's positions or influence in the Company. Any employee found trading securities using information not disclosed to the market shall be fired. The Company to implement employee education and training in the 2025/06, so as to enable employees to understand and comply with the rules by use of easily understandable teaching materials and Q&A.		No difference.No difference.No difference.No difference.

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III. Composition and Responsibilities of the Board of Directors

(I) Does the Board develop and implement a diversified policy and specific managerial goals for the composition of its members?

Yes

I. Basic requirements and values: Gender, age, nationality, and culture.

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

To achieve the ideal goal of corporate governance, the board of directors shall possess the following abilities:

I. Ability to make operational judgments. II. Ability to perform accounting and financial analysis. III. Ability to conduct management administration.

IV. Ability to conduct crisis management. V. Industrial knowledge. VI. An international market perspective.

VII. Ability to lead. VIII. Ability to make policy decisions. IX. Knowledge and ability related to risk management.

The Company's board of directors is formed by 9 board members, including 6 directors and 3 independent directors, of which 55% of the directors are employees, and 33% are independent directors. The board members have rich experience and specializes in finance, business and management. In addition, the Company also attaches great importance to adding young members to the board composition. The Company aims to have 40% of board members under the age of 60, while the current board members under the age of 60 is 33%. The target percentage of female board members is 33%, while the current percentage is 22%. The implementation status is as follows:

Implementation of board diversity:

| Core elements of diversity policy
Director Name | Nationality | Gender | Age | | Assuming the role of the Company's employee concurrently | Independent Director Term of office | Business management | Leadership and Decision-making | Industrial Knowledge | Financial Accounting |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | 51-60 | 61-80 | | Over 9 years | | | | |
| Hong, Huan-Ching | R.O.C. | Male | | V | V | | V | V | V | |
| Wu, Wen-Hsiang | R.O.C. | Male | | V | V | | V | V | V | V |
| Chang, Wen-Tung | R.O.C. | Male | | V | V | | V | V | V | |
| Lu, Kuo-Liang | R.O.C. | Male | | V | | | | | V | |
| Hsu, Chia-Hung | R.O.C. | Male | V | | V | | V | V | V | V |
| Hsieh, Jen-Chien | R.O.C. | Male | V | | V | | V | V | V | |
| Lin, Chih-Chen | R.O.C. | Male | | V | | | | V | | |
| Fang, Hsueh-Chen | R.O.C. | Female | | V | | | | | V | |
| Chang, Shu-Chuan | R.O.C. | Female | V | | | | | | | V |

No difference.

| (II) | Does the Company voluntarily establish other functional committees in addition to the Compensation committee and the Audit Committee? | Yes | No | (II) The Company has set a sustainable Development committees in addition to the Compensation committee and the Audit Committee.
The performance evaluation of the Compensation Committee includes the following metrics:
1. Level of involvement in company operations
2. Understanding of the responsibilities of the Compensation Committee
3. Improving the quality of the Compensation Committee's decisions
4. Composition and selection of members of the Compensation Committee

The performance evaluation of the Audit Committee includes the following metrics:
1. Level of involvement in company operations
2. Understanding of the responsibilities of the Audit Committee
3. Improving the quality of the Audit Committee's decisions
4. Level of involvement in company operations
5. Composition and selection of members of the Audit Committee
6. Internal control

Performance evaluation of the Sustainability Committee
1. Level of involvement in company operations
2. Understanding of the responsibilities of the Sustainability Committee
3. Improving the quality of the Sustainability Committee's decisions
4. Composition and selection of members of the Sustainability Committee

After all questionnaires are collected annually, the corporate governance specialist analyzes and compiles the results according to the aforementioned method, and proposes improvement suggestions for areas that can be strengthened. The Remuneration Committee has conducted 7 performance evaluations, the Audit Committee 4, and the Sustainability Committee 1. The most recent (2025) performance evaluation results for the functional committees are as follows: The Remuneration Committee's self-assessed average score was 3.7 out of 4.00. The Audit Committee's self-assessed average score was 3.7 out of 4.00. The Sustainability Committee's self-assessed average score was 3.8 out of 4.00. All evaluation results were reported at the Board meeting held on March 12, 2026. Please refer to the company website for the evaluation results.

(III) The Company has established rules and procedures for the Board of Directors performance assessment, performance assessment, and conducts scheduled performance assessments every year. The evaluation standards are as follows:
The Company's overall self-evaluation of directors' covers the following aspects:
• The Company's tasks and goals • The Company's internal control and risks
• Management of internal relations • Management of external relations
• Composition and board competence • Board culture
• Operation of the Board of Directors • Self-evaluation of directors

The evaluation items for the performance of directors cover at least the following aspects:
• Legal compliance • Participation in the Company’s operations
In each year, after all the questionnaires are collected, the Corporate Governance Specialist will analyze the statistical results based on the previous method, and suggest improvements. So far, 11 performance evaluations have already been conducted, and the board performance evaluation results of the most recent fiscal year (2025) are as follows:
The average self-evaluation score of board performance is 3.6 points (out of 4.00 points)
The average peer evaluation score is 3.4 points (out of 4.00 points)
The evaluation score for board performance totaled 98 points (out of 100 points)
The evaluation results are to be reported to the board of directors on March 12, 2026 Please refer to the Company's official website for the evaluation results.
4 Please refer to the company website for the evaluation results.
http://www.coxongroup.com/?page_id=1855⟨=zh
The performance evaluation results are used as reference for the remuneration, nomination and re-appointment of individual directors.

(IV) The Audit Committee evaluate the independence and competency of the external auditors annually. In addition to requiring the CPA to provide | None.
No difference. |
| --- | --- | --- | --- | --- | --- |

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| Items | Implementation Status | | | Deviations from
“the Corporate
Social
Responsibility
Best-Practice
Principles for
TWSE/TPEx
Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Descriptions | |
| | | | “Independence Declaration” and “Audit Quality Indicators (AQIs),” the Company conducts evaluation according to the standard for independence evaluation and 13 indicators of AQIs provided by Taiwan Stock Exchange. It is confirmed that except for the fees of audit and tax service between the CPA and the Company, there are no other financial benefits or business relationship. The family members of the CPA do not violate the independence requirement, either. Also, referring to the indicator information of AQI, the Company confirms that the training hours and staff turnover of the CPA and the firm are better than peer level, and its independence and competency meet the requirement of the regulation and the Company’s practical needs. The most recent evaluation result was discussed by the Audit Committee on March 12, 2026. The evaluation of the CPA’s independence and competency was proposed to and resolved by the Board of Directors on March 12, 2026. | |
| IV. Whether the Company assigns the adequate number of competent corporate governance officers, and appoints the chief corporate governance officer responsible for the corporate governance affairs (including but not limited to, providing directors with the information needed to perform their duties, helping directors with compliance, organization of the Board of Directors meetings and shareholders’ meetings, and preparation of board meeting and shareholders’ meeting minutes, etc.)? | Yes | | The Company has appointed a “chief corporate governance officer” under the General Manager's Office, responsible for implementing and promoting corporate governance matters. The chief corporate governance officer serves as the convener, with over 3 years of financial-related experience in public companies, and is mainly responsible for providing information for the directors, helping directors to comply with relevant laws and regulations, and handling matters related to the board of directors and shareholders' meetings in accordance with the laws.
The corporate governance blueprint is as follows:
1. Improve board function 2. Promote shareholder activism
3. Strengthen legal practices 4. Develop the culture of corporate governance
5. Disclosing material corporate governance information
In accordance with the laws and regulations, the chief corporate governance officer to be in charge of furnishing information required for business execution by directors, assisting directors’ compliance of law, and handling matters related to board meetings and shareholders’ meetings according to law. The status of additional studies will be updated in annual report and the official website according to the occurrence date. | No difference. |

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V. Does the Company establish communication channels and dedicate section for stakeholder (including but not limited to the shareholders, employees, clients and suppliers) on its website to respond to important issues of corporate social responsibility concerns?	Yes	The Company has set up a "stakeholders area" on the Company's official website, and disclosed contact information on the MOPS, including telephone and email. In addition, so that stakeholders, such as shareholders, employees, customers and suppliers, can contact the Company's responsible units when necessary, and stakeholder opinions shall be reported to the board of directors at least once every year. As of the deadline, there no corporate social responsibility queries from stakeholders.
			Major issues	Communication channels and response methods	Contact method	2025Communication (Reported to the Board of Directors on November 13, 2025)
		Customer	● Environmental legal compliance
● RBA compliance
● Product quality and safety
● Use of conflict-free minerals	● Customer satisfaction survey
● Regular and irregular meetings related to product quality are held for discussions	Taiwan: Mr. Hou E-mail: [email protected]	1. Customer Satisfaction Survey: Average overall satisfaction of 90.6%.
		Employee	● Non-discrimination and forced labor
● Occupational health and safety
● Education and training
● Talent recruitment	● Hold meetings on a regular and irregular basis
● Set up employee mailboxes
● Billboard
● Complaints mailbox	Taiwan: Miss Wei E-mail: [email protected]	1. Conduct employee health check-up every year.
2. Hold a total of 3 labor-management meetings.
		Shareholder	● Market image
● Economic performance
● Legal compliance
● Product responsibility	● Convening of the annual shareholders' meeting
● Annual report is issued every year in accordance with relevant regulations, and submitted to the shareholders' meeting
● Convening of the investors conference on a regular basis
● Announcement of the Company's operating status and material information on the MOPS
● The Company has set up an investors area on the official website	Taiwan: Mr. Hsu E-mail: [email protected]	1. 21 each of material issues in Chinese & English
2. Convening of one investor conference.
3. Provide English annual reports and relevant information.
4. The video file of the regular General Meeting is released on the official website.
		Supplier	● Environmental legal compliance
● RBA compliance
● Product quality and safety
● Use of conflict-free minerals	● Conduct supplier evaluation on a regular basis
● Regular and irregular meetings related to product quality
Discussions in meetings	Taiwan: Miss Wu, E-mail: [email protected]	1. Conduct a questionnaire survey on supplier environment and occupational safety and health. In 2025, the response rate of major suppliers was 100%, with continuous improvement.
2. 100% of the major suppliers have submitted supplier certificates to the Company in 2025.
		Other		● Mailbox is disclosed on the Company website, with dedicated personnel for complaints response	Taiwan: Mr. Yeh E-mail: [email protected]	In January 2025, the company received an email in the stakeholder mailbox on the company website inquiring about the company's gross profit improvement and future capital expenditure plans, which has been properly responded to.

| Items | Implementation Status | | | Deviations from
“the Corporate
Social
Responsibility
Best-Practice
Principles for
TWSE/TPEx
Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Descriptions | |
| VI. Does the Company appoint a professional shareholder service agency to deal with shareholder affairs? | Yes | | The Company has appointed a professional shareholder service agency “Affairs Stock Agency Department of Taishin Securities Co., Ltd.” to deal with shareholder affairs and ensure smooth operations. | No difference. |
| VII. Disclosure of information
(I) Does the Company have a corporate website to disclose both financial standings and the status of corporate governance?
(II) Does the Company have other information disclosure channels (e.g. building an English website, appointing designated people to handle information collection and disclosure, creating a spokesman system, webcasting investor conferences)?
(III) Whether the Company announces and reports the annual financial report within the time limit at the end of each fiscal year, and the financial report for Q1, Q2 and Q3 and monthly operation overview before the prescribed time limit? | Yes | (I) The Company has designated a special person to be responsible for the collection of the Company's financial and corporate governance information and disclose it on the company's official website, and to disclose financial information on the MOPS.
(II) The Company has appointed a spokesperson and deputy spokesperson, with dedicated personnel responsible for the collection and disclosure of corporate information, and update of the Company's website on an irregular basis. The Company has disclosed the spokesperson’s contact information on the MOPS and company website for stakeholder queries and response. If the Company has conducted an investors conference, it will also publish the video file on its official website: http://www.coxongroup.com/?page_id=1745&lang=en | No difference.
No difference. | |
| | No | (III) Due to the large number of companies in the group and high integration cost, the Company has not planned to announce the annual financial report within two months after the end of the fiscal year and to report the financial statements for the first, second and third quarters and monthly operating status in advance before the specified deadline. However, it has been dedicating efforts in shortening the time for account settlement. | The reporting of information complies with relevant laws and regulations, but has not yet been completed. | |

30 -

| Items | Implementation Status | | | Deviations from
“the Corporate
Social
Responsibility
Best-Practice
Principles for
TWSE/TPEx
Listed
Companies” and
Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Descriptions | |
| VIII. Does the company have other information that enables a better understanding of its corporate governance practices (including but not limited to employee rights, employee care, investor relations, supplier relationship, stakeholders' rights, continuing education of director implementation of risk management policies and risk measurements, implementation of customer policy, and insuring against liabilities of bank's directors)? | Yes | | (1) The Company attaches great importance to the rights and interests of employees, and has established an Employee Welfare Committee to allocates funds on a monthly basis. The Company also periodically organizes employee welfare activities, with detailed employee welfare planning and budgets every year. The Company has set up reading rooms and activity centers in the factories for activities which help the physical and mental development of employees. Moreover, an improvement system is set up to enhance the cohesiveness of employees.
(2) We pay attention to shareholder rights and interests, maintaining good interactions with investors, and attach importance to fairness in the Company, reporting or disclosing various business results or material information on the Company's official website.
(3) The Company has maintained close cooperation with suppliers, and timely evaluates the quality, delivery time and other processes of suppliers to ensure the operation status of suppliers and effectiveness of quality management.
(4) The Company has set up a “stakeholders area” on the website to provide communication channels for stakeholders.
(5) The continuing education of directors shall be timely reported in accordance with the Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies and the Rules Governing the Scope of Powers of Independent Directors.
(6) The Company has formulated the Procedures for Handling Material Inside Information, which will be advocated at cadre meetings, requiring cadres to advocate to their team members, so as to ensure the consistency and correctness of the Company’s announcements. The Company also formulated and successfully implemented the management policies for credit risks, interest rate risks, foreign exchange risks, and liquidity risks.
(7) The Company provides products produced by global customers that are RoHS compliant and ISO 9001 certified in order to meet customer needs.
(8) Since July 2008, the Company has purchased liability insurance for directors and managers every year, and the board of directors have reported on the insurance status on August 12, 2025 | No difference. |
| IX. Please explain the improvements made, based on the latest Corporate Governance Evaluation results published by Taiwan Stock Exchange Corporation Governance Center, and propose enhancement measures for any issues that are yet to be rectified. | Yes | | (1) The Company has completed the self-evaluation of the 11th term Corporate Governance Evaluation.
(2) Opinions of the Board of Directors: None.
(3) Self-evaluation results: The evaluation indicators comply to the regulations. As of the date of publication, the Corporate Governance Center has not yet released the assessment results.
(4) Main deficiencies:
4.7 Has not yet prepared the English corporate sustainability report.
(5) Improvement status:
Our company prepared a corporate sustainability report in 2025. | No difference. |

(IV) Describe the composition, duties and operations of the Compensation committee or nominating committee, if available:
(1) Information of members of the Compensation committee

Identity (Note 1)	Criteria Name	Professional qualifications and experience (Note 1)	Whether or not have been a person of any conditions defined in Article 30 of the Company Act	Independence Attribute (Note 2)					Number of Holding Concurrent Independent Director Position in Other Public Name Companies	Remark
				A spouse, relative within the second degree of kinship are designated as representative to serve as the Company's director or supervisor	Current number of shares (thousand shares) and shareholding of the shareholder, spouse and relative within the second degree of kinship (or in the name of others)	Whether or not serve as a director, supervisor, or employee in the Company or any entity that has a certain relationship with the Company (refer to Article 3, Paragraph 1, Subparagraphs 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies)	Cumulative compensation by providing commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the past 2 years
							NT$thousand
Independent Director (Convener)	Lin, Chih-Chen	After graduating from Feng-Chia University in 1971, Mr. Lin Chih-Chen worked as a teaching assistant in Feng-Chia University, then started to work in Taiwan Power Company since 1974. He obtained the Certificate of "Quality Control Engineer" from the Public Construction Commission, Executive Yuan, and retired after 39 years of services in TPC, with rich business and procurement experience, and has also been a member of the Compensation committee since 2014.	Yes	No	17 0.01%	No	420	475	None	-
Independent Director	Fang, Hsueh-Chen	Ms. Fang, Hsueh-Chen graduated from the Accounting Department of the Department of Business Administration at National Taiwan University in 1973 with a bachelor's degree. In the same year, she passed the examination for the Kaohsiung Customs Bureau of the Ministry of Finance and worked in various internal and external customs positions from the seventh grade. She retired in 2005 as an auditor at the ninth grade. She worked in the customs for 32 years. From 2013 to 2019, she served as the supervisor of Gusong Precision Industry Co., Ltd.	Yes	No	44 0.03%	No	200	-	None	-
Independent Director	Chang, Shu-Chuan	Ms. Chang Shu-Chuan graduated from the Department of Business Administration at National Chengchi University in 1994. From that year, she worked as an auditor at Heng Hui Accounting Firm. She passed the Certified Public Accountant (CPA) exam in 1990 and became a certified public accountant in 2002. From 2002, she served as the head of the finance department at Yu Sheng Medical Technology Co., Ltd., and was promoted to CFO in 2018, 2026 promoted General Manager, a position she holds to this day. From 2013 to 2022, she served as an auditor at Gu Song Precision Industry Co., Ltd. From 2018 to 2022, she served as an auditor at You Quan Pharmaceutical Co., Ltd. (formerly Sheng Lin Pharmaceutical Co., Ltd.). Since 2022, she has served as a director of You Quan Pharmaceutical Co., Ltd.	Yes	No	0	No	200	-	None	-

Note 1: Please specify the relevant years of service, professional qualifications and experience, and independence of each member of the Compensation committee in the form. For independent directors, please refer to page 00, Table 1 for the Information of directors (I). Please indicate the identity of an independent director or other (if you are a convener, please add a note).
Note 2: Professional qualifications and experience: Describe the professional qualifications and experience of each member of the Compensation committee.
Note 3: Independence attributes: Specify the independence attributes of the members of the Compensation committee.

(1) Including, but not limited to, a spouse, relative within the second degree of kinship are designated as representative to serve as the Company's director or supervisor;
(2) Current number of shares and shareholding of the shareholder, spouse and relative within the second degree of kinship (or in the name of others)
(3) Whether or not serve as a director, supervisor, or employee in the Company or any entity that has a certain relationship with the Company (refer to Article 6, Paragraph 1, Subparagraphs 5-8 of the Regulations Governing the Appointment and Exercise of Powers by the Compensation committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange);
(4) Cumulative compensation by providing commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company in the past 2 years.

(2) The responsibilities of members of the Compensation committee

According to the organization rules of the Compensation committee, the members shall pay attention as a good faith manager and submit the recommendations to the Board for discussion:

I. Regularly review of the Rules of the Compensation committee and suggestion of improvements.
II. Sets and periodically reviews the evaluation of the directors and managers performance, long-term performance goals and compensations' policy, system, criteria and structure.
III. Periodically evaluate the achievement of performance goals of the Company's directors and managers, and set the compensation amount for the directors and managers according to the evaluation results obtained from the performance evaluation standards.

Meeting Term	Meeting Date	Content	Relevance assessment	Reasonableness assessment	Resolutions	The Company's response to all opinions of the Compensation committee
6 term 1st meeting	2025/08/12	No salary adjustment for managers.	Taking into account the Company's profitability	In 2025, the Company's salary range was not adjusted due to low profitability	Approved by all members of the committee	Submit to the board of directors for approval by all directors with no dissenting opinion
6 term 2nd meeting	2026/03/12	In 2025, the company made a slight profit and paid employee salaries but not directors' salaries.	Taking into account the Company's profitability	A small profit was made in 2025 years, which was only used to pay employee salaries.	Approved by all members of the committee	Submit to the board of directors for approval by all directors with no dissenting opinion

(3) Operation status of the Compensation committee

I. There are 3 members in the Company's Compensation committee.
II. Current Term: From Aug 12, 2025 to June 25, 2028, the Compensation committee held 2 (A) meetings in the most recent fiscal year (from April 1, 2025 to March 31, 2026). The qualifications and attendance of the committee members are shown as follows:

Title	Name	In-person (B)	By proxy	In-person attendance rate (%) (B/A)	Remark
Convener	Lin, Chih-Chen	2	0	100	Reappointed on Aug 12, 2025
Member	Fang, Hsueh-Chen	2	0	100	Newly appointed on Aug 12, 2025
Member	Chang, Shu-Chuan	2	0	100	Newly appointed on Aug 12, 2025
Other matters to be recorded:
I. If the board of directors declines to adopt or modifies a recommendation of the Compensation committee, it should specify the date of the meeting, session, content of the motion, resolution by the board of directors, and the Company's response to the Compensation committee's opinion (e.g. the remuneration passed by the Board of Directors exceeds the recommendation of the Compensation committee, the circumstances and cause for the difference shall be specified).
Explanation: None.
II. Resolutions of the Compensation committee objected to by members or expressed reservations and recorded or declared in writing, the date of the meeting, session, content of the motion, all members' opinions and the response to members' opinion should be specified.
Explanation: None.

(4) Information on members of the Sustainable Development Committee

Identity (Note 1)	condition Name	Professional qualifications and experience (Note 1)	Does the situation on not fall under Article 30 of the Company Law?	Independence case (Note 2)					Number of independent directors concurred in other publicly listed companies	Remark
				Whether I, my spouse, or relatives within two degrees of kinship serve as directors, supervisors, or employees of the Company or its related enterprises.	Number of shares (thousands) and percentage held by myself, my spouse, and relatives within two degrees of kinship (or under the name of another person) in the company.	Whether or not they serve as a director, supervisor, or employee of a company with a specific relationship to this company (refer to Article 3, Paragraph 1, Items 5-8 of the Measures for the Establishment and Compliance of Independent Directors of Publicly Listed Companies).	The amount of remuneration received in the past two years for providing business, legal, financial, and accounting services to our company or its affiliates.
							NT dollars(in thousands)	2025 2024
Director (Convener)	Hsu, Chia-Hung	After graduating from the Department of Accounting at National Taiwan University in 1994, Mr. Hsu Chia-Hung successively served as an auditor at KPMG Certified Public Accountants as an auditor, assistant manager of the underwriting department of Jinding Securities, and finance manager of Hejin Electronics' Kunshan plant. He has served as the chief financial officer of this company since 2004 and is currently a director of Coxon Precise Industrial Co.,Ltd.	Y	N	144 0.12%	N	1,961	1,938	N	-

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Independent Director	Chang,Shu-Chuan	Ms. Chang Shu-Chuan graduated from the Department of Business Administration at National Chengchi University in 1994. From that year, she worked as an auditor at Heng Hui Accounting Firm. She passed the Certified Public Accountant (CPA) exam in 1990 and became a certified public accountant in 2002. From 2002, she served as the head of the finance department at Yu Sheng Medical Technology Co., Ltd., and was promoted to CFO in 2018, 2026 promoted General Manager, a position she holds to this day. From 2013 to 2022, she served as an auditor at Gu Song Precision Industry Co., Ltd. From 2018 to 2022, she served as an auditor at You Quan Pharmaceutical Co., Ltd. (formerly Sheng Lin Pharmaceutical Co., Ltd.). Since 2022, she has served as a director of You Quan Pharmaceutical Co., Ltd.	Y	N	0	N	200	-	N	-
Member	Wu,Yin-chin	Ms. Wu Yin-Chin graduated from the Department of Biochemical Technology at Chiayi University. She previously served as a section chief at Coxon Precision Industrial Co., Ltd., and was later transferred to the General Manager's Office as a special assistant.	T	Y	7,734 6.35%	N	1,357	1,366	N	-

(5) Duties of the Sustainability Development Committee Members

In accordance with the Sustainability Development Committee's organizational regulations, members of this committee shall, with the care of good managers, faithfully perform the following duties and responsibilities, and shall be accountable to the Board of Directors, submitting their recommendations to the Board for discussion:

Formulate, promote, and strengthen the company's sustainability policies, annual plans, and strategies.
Review, track, and revise the implementation and effectiveness of sustainability development measures.
Supervise matters related to sustainability information disclosure and review sustainability reports.
Supervise the implementation of the company's sustainability code of conduct and other sustainability-related work resolved by the Board of Directors

Conference Session	Meeting Execution Date	Proposal content	Resolution results	Company's handling of the opinions of the Sustainable Development Committee
First Session, 1st	2025/12/18	1. Nominate the convener of the Company's Sustainability Committee.
2. Major thematic proposals for the 2025 Sustainability Report.	The committee members unanimously approved	Reported to the Board on 2025/12/23

(6) Operation status of the Sustainable Development committee

I. There are 3 members in the Company's Sustainable Development committee

II. Current Term: From Nov 13, 2025 to June 25, 2028, the Compensation committee held 1 (A) meetings in the most recent fiscal year (from April 1, 2025 to March 31, 2026). The qualifications and attendance of the committee members are shown as follows:

Title	Name	In-person (B)	In-person attendance rate (%) (B/A)	Remark
Convener	Hsu, Chia-Hung	1	100	Newly appointed on Nov 13, 2025
Independent Director	Chang,Shu-Chuan	1	100	Newly appointed on Nov 13, 2025
Member	Wu,Yinchin	1	100	Newly appointed on Nov 13, 2025

(V) The state of the Company's promotion of corporate sustainable development, any departure of such implementation from the Corporate Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such departure

Items	Implementation Status			Deviations from “the Corporate Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Descriptions
I. Does the Company implement a governance framework that supports sustainable development, and designate a unit that specializes (or is involved) in the promotion of sustainable development? Is the unit empowered by the Board of Directors and run by senior management, and how does the Board supervise progress?	Yes	I. The Company’s governance framework that supports sustainable development is as follows: Shareholders Meeting Compensation committee Audit Committee Convenor Risk Management Team Human Rights Management Team Corporate Governance Team Sustainable Environment and Information Disclosure Team Social Welfare Team Greenhouse Gas Inventory Team II. To fulfill corporate social responsibility, the Company attaches great importance to issues such as corporate governance, sustainable environment, integrity management and social welfare. In 2014, the Company promoted the SER plan, and made amendment in March 2022 to comply with the revision of relevant laws, and renamed the plan as the sustainable development plan. The Administrative Department is now renamed as the General Manager’s Office to implement the plan. Risk management team is overseen by the audit committee. The Sustainable Development Committee was established in November 2025, consisting of an independent director, a director, and a company representative. Members from relevant units also serve as executive team members. It is a cross-functional team supervised by the Sustainable Development Committee and operates according to the principle of materiality. It is composed of related units, and is a cross-functional team under the General Manager’s supervision. In addition, the Company has set up an executive team to analyze stakeholders’ issues of concern according to the professions and responsibilities of each department, and assigned tasks to each relevant unit, while the implementation status is reported to the board of directors on an annual basis. III. On November 13, 2025, the implementation status was reported to the board of directors by the General Manager’s Office as follows: 1. For the production of RoHS-certified products, the Company continuously perform product testing to confirm whether the products meet the certification standards. 2. In the summer, the Company continues to implement minimal temperature limits for air conditioning in each factory area, which is favorable in terms of energy saving, carbon reduction and greenhouse gas reduction. The schedule planning of greenhouse gas check and confirmation was reported to Board of Directors since August 12, 2022. This year marks the first time that a sustainability report has been completed. 3. The product packaging materials such as cartons and containers are recycled and reused in fixed batches. The recycling rate from January to September 2025 was 95.31%, which increased by 16.47% compared with 2025. because export products		No difference.

cannot recycle packaging materials; some customers have low product turnover rates.

Exchanged the ISO45001 certification reassessment on August 29, 2024.

IV. The main responsibilities of each team related to the promotion of sustainable development:

Human Rights Management Team: Adhering to internationally recognized human rights norms and the laws and regulations of the company's location, as well as labor safety and health and stakeholder communication mechanisms, in order to achieve the company's goal of sustainable development.
Corporate Governance Team: Responsible for providing directors with the information required for business execution, assisting directors to comply with laws and regulations, handling matters related to the board and shareholder meetings in accordance with the laws, planning of corporate governance structure, code of conduct, internal control system, risk management and business continuity management, and proposing improvement plans. Educate and train employees to maintain the company's whistleblower system..
Environmental Sustainability Team: Responsible for promoting relevant systems for sustainable development and environmental protection, including environmental management, green products, wastewater treatment, air pollutant emission inventory, and waste management, while proposing improvement suggestions.
Sustainability and Information Disclosure Team: Responsible for sustainability information management policies, compliance with relevant laws and international standards on sustainability information disclosure, assessment of sustainable transformation, resource utilization improvement, and climate change response mechanisms, and full disclosure of relevant and reliable sustainability information to enhance sustainability information transparency.
Social Welfare Team: Responsible for promoting social welfare related systems and proposing relevant improvement suggestions.
Risk Management Team (Under the supervision of the Audit Committee): Based on the principle of materiality, conducts risk identification and proposes control strategies and practices for potential risks, and coordinates media disclosure and external liaison matters.
Greenhouse Gas Inventory Team: Responsible for collecting and analyzing the organization's internal energy use and emissions data, establishing and updating the carbon emissions database, adhering to standards such as ISO 14064 or national regulations, planning and implementing carbon reduction targets and pathways, and promoting the implementation of carbon reduction measures, energy conservation improvements, and renewable energy use plans.

V. 2025 Sustainable Development Committee's review and oversight of the company's operations and meeting implementation:

Conference Session	Meeting Execution Date	Proposal content	Resolution results	Company's handling of the opinions of the Sustainable Development Committee
First Session, 1st	2025/12/18	1. Nominate the convener of the Company's Sustainability Committee.
2. Major thematic proposals for the 2025 Sustainability Report.	The committee members unanimously approved	Reported to the Board on 2025/12/23

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II. Whether the Company conducts the risk assessment on the environment, society and corporate governance issues related to the Company's operation based on the materiality principle, and adopts related risk management policies or strategies?	Yes	The Company's risk management policy covers the Company and its wholly-owned subsidiaries, including existing locations in Taiwan and China. The Company conducts risk management analysis based on the principle of materiality, communicates with internal and external stakeholders, and conducts risk assessments on important issues by reviewing domestic and foreign research reports and integrating assessment data from various departments and subsidiaries. The Risk management team under the audit committee for promoting this initiative. the risk management policy and, based on the assessed risks, formulates risk management policies for effective identification, measurement, evaluation, supervision and control, and adopts specific action plans to reduce the impact of related risks. The specific risk management policies are as follows:		No difference.
		Major issues	Risk assessment items		Risk Management Policy
		Environment	Environmental protection		The Company is committed to environmental protection, and has established a work environment in response to green homes, formulating OHS impact management procedures, as well as waste gas, waste water, stationary waste and chemical management procedures, so that employees can comply with the environmental protection policy and effectively implement pollution prevention and control. In addition, the Company has obtained the ISO14001 environmental management system certification in 2006, with maintenance of effective certification on a regular basis.
		Society	Occupational safety		Obtained ISO45001 occupational health and safety management system certification in 2021. Conducted fire drills and occupational safety education and training on an annual basis, in order to train employees on responding to emergencies and safety management.
			Product safety		All of the Company's products comply with government regulations and relevant service laws, the EU's RoHS regulations, and do not contain any hazardous substances. Meanwhile, to ensure customer service quality and improve customer satisfaction, we have set up customer service mailboxes, appointed dedicated personnel for customer service, and conducted customer satisfaction surveys every year, in order to strengthen the relationship with customers for mutual benefit and common prosperity, and achieve corporate sustainability.
		Corporate Governance	Social Responsibility and Legal Compliance		1. By establishing a governance team and implementing the internal control system, we ensure that all of the Company's employees and operations comply with relevant laws and regulations.
2. Apply for patents for products developed by the Consolidated company to protect the company's rights and interests
			Strengthening board functions		Planning relevant trainings for the board of directors, and providing the latest regulations, system development and policies for directors every year. Provide liability insurance for directors to protect them against lawsuits.
			Stakeholder Communications		To avoid misunderstandings between stakeholders and the Company, which may result in management disputes or litigation risks, the Company analyzes major issues concerned by stakeholders every year. In addition, we actively established various communication channels, set up stakeholder mailboxes on the Company's official website, and appointed a spokesperson responsible for relevant responses.
Sustainable Development Committee (formerly the General Manager's Office) and audit committee report the implementation
		of the Company's risk management policies and procedures.
		and the Company's risk management policy and, based on the assessed risks, formulates risk management policies for effective identification, measurement, evaluation, supervision and control, and adopts specific action plans to reduce the impact of related risks. The specific risk management policies are as follows:	No difference.
III. The Company's risk management policies and procedures	Yes	Major issues	Risk assessment items	Risk Management Policy
		Environment	Environmental protection	The Company is committed to environmental protection, and has established a work environment in response to green homes, formulating OHS impact management procedures, as well as waste gas, waste water, stationary waste and chemical management procedures, so that employees can comply with the environmental protection policy and effectively implement pollution prevention and control. In addition, the Company has obtained the ISO14001 environmental management system certification in 2006, with maintenance of effective certification on a regular basis.
IV. The Company's risk management procedures	Yes	Society	Occupational safety	Obtained ISO45001 occupational health and safety management system certification in 2021. Conducted fire drills and occupational safety education and training on an annual basis, in order to train employees on responding to emergencies and safety management.
		Product safety	All of the Company's products comply with government regulations and relevant service laws, the EU's RoHS regulations, and do not contain any hazardous substances. Meanwhile, to ensure customer service quality and improve customer satisfaction, we have set up customer service mailboxes, appointed dedicated personnel for customer service, and conducted customer satisfaction surveys every year, in order to strengthen the relationship with customers for mutual benefit and common prosperity, and achieve corporate sustainability.

40 -

		and future work plan of sustainable development and risk management to Board of Directors at least once a year. On November 13, 2025, General Manager’s Office and audit committee reported to Board of Directors about the implementation and future work plan of 2025, including: The status of director’s supervision on and goal setting for sustainable development: 1. The recycle of packaging materials not only has positive impact on cost control of the Company, but also has greater meanings to the environmental protection. It should be continued. 2. The Company improves the quality for customer satisfaction to gain customer confidence. 3. The Company dedicates to deconcentrate the source of customers to reduce the risk of sales concentration. 4. The management reports recovery status of account receivable to Board of Directors semi-annually or quarterly.
III. Environmental Issues (I) Does the Company establish proper environmental management systems based on the characteristics of their industries?	Yes	(I) 1. The Company has formulated environmental management procedures based on industry characteristics, and continues to perform internal management reviews and audits. 2. To identify the environmental and occupational safety and health factors, the Company takes into account the activities, services and products, including procurement, manufacturing, storage, transportation, sales, services, product use and recycling, waste disposal and regeneration. In conjunction with external supervision and audits, the validity of the obtained certificates was maintained. 3. To ensure compliance with international environmental management standards and continuously optimize environmental protection measures, the environmental management system implemented by the Taiwan plant in 2025 mainly included the following aspects: A. Energy and resource conservation: Implementing energy-saving devices and promoting company energy management. B. Waste management: Implementing waste sorting and management to reduce the generation of waste such as paper. Overall, the company's environmental management system was effectively implemented in 2025. The implementation of energy-saving devices was highly effective, with energy savings reaching [percentage missing]21.37% and waste recycling rate reaching 61%. 4. The Company obtained ISO 14001 certification in 2008 and TS 16949 certification in 2014; passed IATF 16949 certification reassessment on September 12, 2023, which shall be valid until September 11, 2026; passed ISO 14001 certification reassessment on October 27, 2023, which shall be valid until October 27, 2026. (II) 1. In response to energy saving and carbon reduction, the Company installed energy-saving products in the molding machine, and replaced electrical equipment for energy conservation this year. The Parent Company overall power-saving rate in 2025 decreased by 21.37% compared with base year 2025 The Company will continue to attach great importance to its development in energy conservation, and will continue to implement its energy-saving plans in 2026, with the aim to achieve positive growth in the power-saving rate in the most recent year. 2. The Company actively develops PCR to use reduce plastic New materials raw materials, and reduce the environmental impact. In 2025, the purchase volume of PCR materials was approximately 375 tons. 3. Our company supports the recycling of packaging materials. The parent company has the purchasing unit report on the	No difference.
(II) Does the Company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment? (III) Does the Company assess the current and future risks and opportunities of climate change, and responsive	Yes		No difference.

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| measures related to the climate? | | No | packaging material recycling status at monthly management meetings, and the goal is to continuously improve the recycling rate year-on-year. This year's packaging material recycling rate was 94.16%, an increase of 15.75% compared to 2025. The packaging material recycling target for 2025 has been achieved, successfully reducing waste and contributing to the creation of circular value.

(III) 1. Coxon responses supports on the Climate-Related disclosures (TCFD) actively, Coxon has identified and assessed the related climate risks and opportunities subject to their business characteristics and research and draft responsive strategies and mitigation measures with respect to various risks and opportunities over climate changes.
2. Coxon discloses the word progress and results by four major aspects, including governance, strategy, risk management, and indicator & objective, and also enacts and implements countermeasures in order to reveal the Company’s determination to boost corporate sustainability.
3. The risk management units and sales units of Coxon would identify and assess the climate-related risks and opportunities subject to their company size, business characteristics and business strategies, and assess the importance of effect, time period, territory, value chain location and financial effect based on various risks and opportunities, and also draft responsive strategies and mitigation measures therefor.
4. Said detailed information is disclosed in Coxon Annual Report chapter “Risks and opportunities posed by climate change to the Company and the relevant measures taken by and relevant countermeasures taken by the Company”.

(IV) The Company formulates and continuously implements policies for energy conservation, carbon reduction, water saving and waste management, taking into consideration relevant costs. There were no statistical results of the GHG emissions scope 3, and total weight of waste in the past two years. The reduction targets for both categories are to gradually reduce emissions annually until 2030, thereby achieving the goal of reducing carbon intensity by 3-5% per year. Water consumption: The company collects statistics on carbon emissions from water resources to facilitate subsequent management and control. In 2025, twater intensity base year 2023 a decrease of 22.55% . it will year by year continue to promote aim to Reduce ratio as a target, Some equipment uses pure water circulation equipment to save water resources. The water reduction target for 2025 has been achieved.

Waste: In order to obtain the weight of waste, the company asks the general affairs department to assist in obtaining the weight of daily garbage and production generated every month. In 2025, twater intensity ,base year 2023 a decrease of 43.46%The company will year by year use this as the basis for subsequent management of waste reduction target. At the same time, it will continue to promote waste classification and has set up special trash cans for paper and bottle recycling. The waste reduction target for 2025 has been achieved. | | | No difference. |
| --- | --- | --- | --- | --- | --- | --- |
| (IV) Whether the Company gathers statistics about the annual greenhouse gas emission, water consumption and gross weight of waste for the past two years, and adopts policies for energy conservation and carbon reduction, greenhouse gas reduction, reduction of water consumption or management of exhaust gas and other waste goods? | No | | Parent Company Projects\Annual | 2023 | 2024 | 2025 |
| | | Greenhouse Gas Emissions (tons) (Categories I & II) | 1,464.63 | 1,052.51 | 920.68 | |
| | | Greenhouse Gas Emission Intensity (Categories I & II) | 0.0018 | 0.00106 | 0.00105 | |
| | | Water Consumption (tons) | 10,360 | 8,672 | 8,494 | |
| | | Water Intensity | 0.79 | 0.87 | 0.97 | |
| | | Waste (kg) | 80,150 | 50,531 | 45.320 | |
| | | Waste Recycling Rate | 38% | 59% | 61% | |
| | | | | | | |
| IV. Social Issues | | | (I) (1)The Company abides by local governmental laws and regulations, supports relevant international labor standards, | | | No difference. |

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(I) Did the Company draw applicable management policies and procedures based on applicable laws and international human rights agreements?

Yes

and has formulated the Work Rules and Measures of Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace with reference to the RBA Code of Conduct, the International Labor Organization - Declaration on Fundamental Principles and Rights at Work and United Nations Universal Declaration of Human Rights. In addition, the Company gives respect to all full-time, contractual and part-time employees and interns, ensures that employees will not be discriminated, harassed, or encounter with unfair treatment due to their race, gender, religious belief, age, political affiliation and other situation that is protected by laws and regulations. and has signed the social responsibility commitments with the suppliers.

(2) The company has established a human rights governance structure with the board of directors at the highest level. The Sustainable Development Committee has set up a cross-departmental human rights management team, which includes functional organizations such as human resources, and operations, to systematically and effectively promote human rights management work and report the progress to the Sustainable Development Committee on a regular basis. The Sustainable Development Committee then reports the implementation results to the board of directors on a regular basis.

The Company's human rights management policies are as follows:

Human Rights Management Policy	Description
Provide a safe and healthy working environment	Periodic inventory is carried out according to the Company's "Working Environment and OHS Risk Management Procedures".
Prohibit forced labor, and strictly abide by local government laws	Implement the leave management system, encourage colleagues to attach importance on work-life balance, and organize education and training courses.

Implementation status:

Participate in courses on labor law on an irregular basis, and review Company's management procedures after class.
Conduct company department head meetings, labor-management meetings or forums.
Set up complaints mailbox to understand the needs and protect the rights and interests of employees.
In terms of education and training, the Company has organized 59 classes related to human rights protection in 2025, such as the prevention of forced labor, and workplace gender equality, with 121 hours of training, and participated by 538 employees, while the total number of training hours was 997 hours. In the future, we will continue to attach great importance to human rights issues, conduct relevant education and training, and formulate relevant norms to increase the employees' awareness on human rights protection, and lower the possibility of related risks.

(II) Whether the Company adopts and implements reasonable employee benefit policy (including remuneration, vacation and other benefits, etc.), and reflects the operating performance or results to the remuneration to employees adequately?

Indicator	Percentage (%)	Goal for 2030 (%)
Female employees to total employees ratio	41.54	-
Female managers to total managers ratio	18.18	30
Foreign employees to total employees ratio	30.77	-

No difference.

(II) Article 30 of the Company's Articles of Incorporation stipulates that if the Company's earned profits in the current fiscal year, it shall allocate 3%-12% as employee compensation (At least 5% of the total employee compensation should be allocated to junior employees.), and 1. Set up an employee welfare committee. 2. Organize employee travel and activities that help employees in their physical and mental development. 3. Provide marriage, childbirth, and funeral subsidies. 4. Conduct regular employee health check-up. 4. Provide group injury insurance for employees engaged in work that requires frequent travel or are prone to work-related injury. 5. Employees traveling abroad are required to purchase travel insurance. 6. Comprehensive insurance is required for official vehicles. 7. Provide friendly a mother-friendly environment such as breastfeeding rooms. 8. Provide staff quarters. 9. A total of 22 people applied for the Education Scholarship for Staff and Children in 2025.

The Company implements a performance bonus system to appropriately distribute employee remuneration based on the

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| (III) Did the Company create a safe and healthy work environment for employees and offer periodic safety and health training to employees? | Yes | Company's business performance, sharing the business achievements with employees. The system assess the Company's profitability and various key indicators, with corporate sustainability as the core value and new source of competitive advantage.
In 2025, the minimum wage was raised according to relevant laws and regulations.
The Company aims to implement gender equality in terms of salary pay and promotion opportunities, with women holding 30% management roles, in order to achieve corporate sustainability, inclusion and economic growth. In 2025, women account for an average of 41.54% of total staff members, and an average of 18.18% of managers, The improvement is continuing.

(III) The Company attaches great importance to the working environment and employee safety protection measures. The certifications for ISO14001 (which shall be valid until October 27, 2026) and ISO45001 (which shall be valid until September 15, 2027) management systems are still valid in 2025, which are used for major environmental aspects / occupational safety and health risk control, and making improvements by setting goals and project management.
Meanwhile, the Company's low risks are managed by control operations. The Company's environmental & occupational safety and health policies:
• Environmental pollution control and maintenance of ecological resources
• Legal compliance to ensure safety and health in the workplace
• Employee participation for continuous improvement
The Company's management plans: | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | | No. | Target/ Object | Project | Current Status | Implementation status |
| | | 1 | Recycling of packaging material | Recycling in fixed batches | Promote recycling in fixed batches and offer price discounts for customers | The recovery rate in fiscal year 2025 was approximately 94.16%, an increase of 15.75% compared to fiscal year 2024. |
| | | 2 | Establishment of occupational hearing loss prevention manual | Noise Hazard Prevention | Noise activated warning sign
Advocacy on noise hazard prevention
Workers wearing earplugs in noisy environments
External unit detection | Established warning signs
Prepared noise hazard prevention statement
On-site coaching and correction by the supervisor
Inspection tests are conducted every six months, and has been implemented twice in 2025 |
| | | 3 | Prevention of scalding and bumping injuries during injection molding | Anti-collision and heat insulation measures | Addition of anti-collision protection sheet, and machine heat shields and warning settings | Completed establishment, followed by advocates. There were no injuries in the workplace in 2025. |
| | | 4 | Recycling of business waste | Procedures for Managing Stationary Waste | Centralized management of direct and indirect wastes due to operational requirements and handled by professional cleaning companies | Waste paper is handled by professional document destruction recycling company to meet the demands of environmental protection. Waste lamps and batteries are also collected and then sent to the professional recycling company |
| 5 | The air gun is installed at the lower die of the | Improvement proposal | Manually blowing and wiping the lower die is likely to cause injury to employees | Installation has been completed, There were no injuries in the workplace in 2025. | | |

No difference.

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Yes	roll-forming machine
	6	Die handling, hydraulic stacker and safety shoes	Procurement of hydraulic forklifts and safety shoes	Molds should not be handled manually as it may affect the safety of employees	Purchased and requested employees for strict implementation, and there were no occupational injuries in 2025.
	7	Dust is harmful to human health	Efficient fume hoods and fans	Require employees to clean every day and prohibit smoking in the workplace	In 2025, the operating unit will conduct daily self-inspections, as well as external inspections (once every six months)
	8	Assessment of employee health	Employee health check-up	Check for possible occupational injuries (hearing, chest and lungs) and obtain data for statistical analysis and monitoring	Conducted employee health check-up on November 25, 2025, including hearing and pneumoconiosis check, and there were no new workers with health problems in 2025
Follow-up on environmental and occupational safety and health ●Promotion of Restriction of Hazardous Substances (RoHS) To comply with customer demands, the Company continues to promote compliance with the specifications with stringent implementation, which has been well-praised by customers. ●Promotion of 6S activities Competitions are held every month to encourage employees on self-discipline and abide by the norms to achieve a clean environment. ●Identification of Hazardous Sources Every year, the Company requests each unit to assess and identify hazardous sources in the working environment, with the hope to effectively prevent employee injuries. The identification results were inspected periodically. Overall, the implementation was successful in 2025. Occupational safety performance: the company no fire accidents in 2025. In 2025, the total number of occupational safety and health of 168 education and training with 311.5 hours of training, and participated by 1,376 employees, while the total number of training hours was 2,718 hours. To prevent workplace sexual harassment, our company has established workplace sexual harassment prevention measures, complaint and disciplinary procedures, provides employee assistance programs, disciplinary measures and training courses, and has set up a Sexual Harassment Complaint Handling Committee to handle complaints. In 2025, our company disciplined one employee for misconduct. In 2025, a total of 7 sexual harassment prevention education and training courses were held, totaling 13 hours, with 85 participants and a total of 150 hours of training. (IV) The Company encourages employees to pursue courses. In addition to organizing an "Education and Training Center" for internal employee education and training, and improve the employees' professional knowledge and management skills, the Company also encourages employees to participate in external training which meet their professional duties, and provide training costs, so as to increase employee competitiveness and cultivate talents. The Faculty Hiring and Promotion Committee conducts evaluations, with promotions for the employees that passed the evaluation. There were a total of 349 education and training courses in 2025 with 682 hours of training, and participated by 2,732 employees, while the total number of training hours was 5,191 hours.
Covering the following aspects :
Number	Course item	Total caisses	Total number of attendents	Total hours	Total expense
1	Self-inspiration	98	850	1,729.5	97,500
2	General Education Training	36	365	664

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the suppliers should comply with the related regulations governing environmental protection, occupational safety and health or labors' human rights, and how the policy is implemented? (VII)Does the Company evaluate the risk or opportunity of community and take corresponding measures. (VIII) Whether the Company adopts provide resources to support domestic cultural development? and how the policy is implemented?	3	Management skills	42	321	629
	4	Professional training	140	1,030	1,980
	5	New Employee Training	33	166	188.5
	Total		349	2,732	5,191
(V) The Company's products include smartphone components and other products. The customer service and marketing methods are guided by customer needs and technology R&D, and comply with the Responsible Business Alliance Code of Conduct (RBA). Due to industry characteristics, the Company's product labelling complies to customer needs and RoHS policy, so as to ensure the safety of customers. The Company has established the "Personal Data Processing Guidelines" are overseen by the General Manager's Office and implemented by the unit holding the personal data. This ensures that all personal data is properly stored and used with authorization, thereby managing and protecting customer privacy. Employee awareness is strengthened through information encryption, personnel control, employee training, and internal audits. In 2025, one training session on personal data protection was conducted, lasting one hour, with 21 participants, totaling 21 hours of training. This safeguards customer data and enhances customer service satisfaction. No personal data complaints were received this year, indicating good implementation. Our company has established a "Corrective and Preventive Action Control System," which clearly defines the handling process for customer complaints, grievances, proposals, or dissatisfaction regarding our products. We have assigned customer service personnel to resolve customer issues, responding to complaints within one business day and providing an analysis report within the customer's requested timeframe. Furthermore, we conduct an annual customer satisfaction survey to understand customer satisfaction levels and gather feedback and feedback, fostering a more harmonious relationship between customers and the company, ultimately achieving a win-win outcome. Our customer communication and complaint contact information is as follows: Taiwan: Mr. Hou, Email: [email protected] The Company's website has set up a stakeholders area, complaints mailbox and handling procedures, providing complaints channels to protect the consumers' rights and interests. The mailbox received one requirement from one stakeholder who asked about when to return to profitability, how to increase product gross profit, the amount of profit that new capital expenditures can contribute, and the impact of the US-China trade war on the company's revenue. Company already accomplished the reply. (VI) The Company has conducted Committed to integrating the concept of sustainability into procurement decisions and supply chain management, supplier evaluation before cooperating with suppliers. The evaluation includes ISO certification, on-site assessment, and signing of environmental guarantees. The company must not have any significant negative impact on the environment or violate environmental regulations, and must effectively implement a corporate culture of environmental sustainability. Those who have passed the evaluation become qualified suppliers, and are required to provide a Certificate of Non-use for Environment-Affecting Substances and Supplier's Commitment. In addition, the Company conducts evaluation on the major suppliers on an annual basis with reference to industry comments. The Company requests the supplier to sign an Supplier Quality Assurance Agreement and Supplier CSR and Ethics Commitment Letter before transactions with suppliers. In addition, the suppliers are required to comply with the Material Management Process, with restrictions on quality, labor and human rights issues, and use of conflict-free minerals. If the supplier's product violates the CSR policy, and has a significant impact on the environment, the supplier shall make compensation and bear legal responsibility. In 2025, A total of 336 commitment letters were returned. The percentage of suppliers that signed the requested forms was 95.18% (VII) In order to support local education, maintain daily life of student in an emergency, protect their right to education, and be minor-friendly, the Company provides elderlies and children who are physically or mentally challenged with assistive devices or caring equipment to maintain better quality of life. During 2025, the Emergency relief performed by Coxon Social						No difference.

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		Charitable Foundation were as follows:			No difference.
		Type	Number of helped people/family	Amount
		Student relief	14	NT$440 more thousand
		donation of assistive devices and equipment	16	NT$1,770 more thousand
		Total	30	NT$2,210 more thousand
		(VIII) The Company supports the development of domestic culture, and continues to donate "Love Library" in various schools to make up for the needs of the teaching site. Grassroots teachers are the main borrowers, and through in-depth discussions with co-reading, creativity is derived and multiple values are displayed. Ten shared reading boxes were donated to help Zhongfu Elementary School in Zhongli District, Taoyuan City set up., total amount of NT$ 100 thousand.
V. Whether the Company prepares the report disclosing the Company's non-financial information, such as the sustainability report, based on the guidelines or directions for preparation of reports applicable internationally? Whether said report has been assured or guaranteed by a third party certification unit?	No	Year 2024, this was the first year our company prepared a sustainability report, compiling and disclosing non-financial information in accordance with the latest version of the Global Reporting Initiative (GRI) guidelines and the sustainability disclosure indicators for the computer and peripherals industry. This report did not receive any assurance or guarantee from a third-party verification body.			The sustainability report has not been prepared due to cost considerations.
VI. If the Company has established corporate sustainable development code of conducts based on "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies," please describe any discrepancy between the principles and their implementation: The Company formulated the Code of Conduct & Corporate Social Responsibility in 2010 (renamed as the Code of Conduct & Sustainable Development in 2022), and carried out corporate governance accordingly, covering the main principles of corporate governance. There has been no significant difference since it has been implemented.

VII. Other information material to the understanding of corporate social responsibilities:
1. The Company established Coxon Social Charitable Foundation in 2009, and the actual amount of donation was more than NT$2.61 million in 2025. The Company was engaged in social care activities and caring for the disadvantaged, in the aim to give back to the society. The details are as follows:

No.	Usage of funds	Donatee	Amount of donation	Purpose
1	Emergency relief	Jia Na Elementary School, Haiduan Township, Taitung County	5,000	Student Emergency Relief
2	Welfare for people with disabilities	Taiwan Futian Social Welfare Development Association	200,000	Medical care funding case
3	Welfare for people with disabilities	Mr.Hong**	50,000	2025 year living allowance
4	Welfare for people with disabilities	Hsinchu City Private Catholic Rehabilitation Center	77,000	Surveillance system equipment funding case
5	Child Welfare	Shuiyuan Elementary School, East District, Hsinchu City	15,000	Student emergency relief case
6	Senior Welfare	The Chiayi County Private Catholic Ando Social Welfare and Charity Foundation has established the Chiayi County Private Anna Home for the Elderly Long-Term Care Center (nursing care type).	168,000	Case of long-term care center facilities for the elderly
7	Welfare for people with disabilities	Hsinchu City Catholic Renai Social Welfare Foundation	227,200	Sports equipment funding case
8	Financial assistance for low-income families	Taoyuan City North District Assistive Device Resource Center	7,500	Case of Subsidizing Assistive Device Funding
9	Emergency relief	Chung Tai University of Science and Technology	20,000	Student emergency relief case
10	Welfare for people with disabilities	Min Dao Home, a private residential community in Chiayi County affiliated with the Catholic Church in Chiayi.	70,000	Living facilities and equipment case
11	Emergency relief	Caoluo Junior High School	15,000	Student emergency relief case
12	Emergency relief	Mountain Top Elementary School	20,000	Student emergency relief case
13	Welfare for people with disabilities	Taichung City Private Compassion and Intelligence Development Center, affiliated with the Catholic Diocese of Taichung	16,500	Water dispenser equipment case
14	Emergency relief	Zhanghe Elementary School	20,000	Student emergency relief case
15	Welfare for people with disabilities	Changhua County Autism Kenner Parents Association	149,350	Kitchen equipment case
16	Welfare for people with disabilities	The Catholic Father Bai Yongen Social Welfare Foundation	199,900	Kitchen facilities and equipment for meals for people with disabilities in the four townships of the Southern Crossing in Taitung area
17	Other social welfare	Taiwan Reading Culture Foundation	100,000	The "Library of Love" case
18	Welfare for people with disabilities	Private Angel Development Center of Taoyuan City, affiliated with the Catholic Church of Taiwan, Hsinchu	160,296	"Emotional Safe Room" Facilities and Equipment Case

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		Diocese
19	Emergency relief	Taiwan Reading Culture Foundation	30,000	Student emergency relief case
20	Emergency relief	Taiwan Reading Culture Foundation	10,000	Student emergency relief case
21	Child Welfare	Nantou County Yilin Social Welfare Association	77,000	2025 Summer Care Program for Disadvantaged Children
22	Welfare for people with disabilities	Hsinchu City Private Aiheng Rehabilitation Center Foundation	26,500	Student Locker Funding Case
23	Welfare for people with disabilities	The Catholic Church Taichung Diocese Affiliated Nantou County Private Resurrection and Rehabilitation Center	191,690	Case concerning facilities and equipment for people with disabilities
24	Senior Welfare	The Catholic Father Bai Yongen Social Welfare Foundation	202,112	Transportation facility maintenance funding case
25	Welfare for people with disabilities	Taiwan Creative Association	164,973	Newly established "Bade Small Workshop" facilities and equipment case
26	Emergency relief	Taiwan Reading Culture Foundation	15,000	Student emergency relief case
27	Emergency relief	Taiwan Reading Culture Foundation	60,000	Student emergency relief case
28	Emergency relief	Yanshan Village, Zhushan Town	20,000	Emergency relief case
29	Emergency relief	Chiayi County Hsieh High School	20,000	Student emergency relief case
30	Senior Welfare	Shuangfu Social Welfare and Charity Foundation	70,000	Tracking and caring for low-income orphaned elderly in Taoyuan area
31	Emergency relief	Nantou County Yilin Social Welfare Association	42,000	Emergency relief case
32	Welfare for people with disabilities	Hua Sheng Home, a private Catholic home affiliated with the Chiayi Diocese of the Catholic Church in Yunlin County	116,000	Equipment and facilities funding case
33	Emergency relief	Chiayi County Hsieh High School	20,000	Emergency relief case
34	Emergency relief	Hsinchu County Libo Patriotic Middle School	30,000	Emergency relief case

The Company invested in Simpla Biotech Co., Ltd. in 2018, with a total amount of approximately NT$30 million. The Simpla Biotech Co., Ltd. takes non-toxic, healthy and sustainable environmental protection as its core value. In order to leave sustainable assets to next generation, Simpla Biotech Co., Ltd. focuses on manufacturing Building Materials with 3R PP Foam board and reducing burden on the earth and harm to human body from plastic products. It is estimated to reduce carbon 36,744 tons per year. In addition, the Company purchased energy-saving variable-frequency control system and relative chiller, and conducted wind pipe improvement construction in 2019, with a total of NT$670 more thousand. It can save electricity expense by some NT$67 thousand per month and reduce electricity consumption by 20,000 more kWh per month.
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Climate-Related Information of TWSE/TPEx Listed Company

Risks and opportunities posed by climate change to the Company and the relevant measures taken by and relevant countermeasures taken by the Company

Item	Implementation
1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.	1. The Company's “The General Manager's Office” has reported the greenhouse gas inventory plan and implementation to the Board of Directors on a quarterly basis since June 2022 to evaluate the risks and opportunities of climate change, and oversight and governance. 2. Management of “The General Manager's Office” is responsible for convening relevant units for inventory count and confirmation of the potential impact of various risk issues on internal and external aspects based on various risks, including identification, assessment to climate change risks and relevant response. It also holds meetings on an annual basis to select priority climate change initiatives to support the Company's sustainable development.
2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).	1. To identify the climate risk and opportunity, Coxon primarily has identified the climate risk and opportunity by different business characteristics and prepared the corresponding risk management based practices. 2. The Company's emergency preparedness and incident response management procedures cover climate change issues. The climate change impact analysis is as follows:
	Duration	Climate-related risks	Potential financial implications	Climate-related opportunities	Potential financial implications	2025 implementations
	Short-term,Mid-term	Unstable power supply	Production is restricted amid rise in operating costs	Replacement of energy-saving equipment	Reduction of operating power costs	Replacement of old equipment to reduce electricity consumption
	Short-term,Mid-term	Impact on company image	Unable to meet the stakeholder expectations, resulting in damage to company image	Raise the willingness of investors on long-term investment	Stabilize shareholder structure and reduce the probability of large stock price fluctuations	Strengthen the promotion of PCR
	Long-term	Low-carbon energy-saving product development costs	Increase in low-carbon energy-saving product development costs	Expand the production and services related to PCR	Meet customer requirements for energy-saving products to increase revenue	Introduction of PCR and other biomass materials to reduce carbon emissions
	Long-term	Rising temperature	Increased power consumption	Promotion of green products	Lower electricity costs	Replacement of AC equipment to reduce electricity consumption. The amount of PCR materials purchased in 2025 was approximately 375 tons.

| 3. Describe the financial impact of extreme weather events and transformative actions. | 1. For the impact posed to the finance by extreme climate factors (extreme climate causes operation to be interrupted, or cases flood to the business locations and loss of products) and transformation actions (carbon reduction policy and regulatory response costs, industrial green energy and environmental protection transformation costs), the financial impact of extreme weather, please refer to said Item 2.
2. The Company will continue to mitigate the impact posed by climate risk factors to the value of financial products by diversifying the product portfolio, meanwhile, based on the scenario analysis results, the Company will refigure self-risk tolerance and asset risk pricing, and set the climate risk indicators in order to monitor the loss on value caused by the extreme climate risks.
3. In order to manage the risks associated with extreme climate incidents and low-carbon economic transformation, the risk over climate change has been incorporated into the business decision-making, in order to identify, and manage risks; meanwhile confront the crisis from global warming and depletion of resources, use the best effort to respond to the trend of energy conservation and carbon reduction and adopterlevant mitigation and adaptional measures. |
| --- | --- |
| 4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system. | 1. The Company has constructed the complete risk management organizational framework and policies. The risk profile covers business risk. Legal and compliance risk and environmental risk (including climate risk), with the indicators including E for Environmental, S for Social and G for Governance. The Company’s risk management policy has included the environmental risk (including climate risk). In other words, the Company has identified climate change as the strategic business risk, and included the identification, assessment and management thereof into entire risk procedure.
2. The Company’s risk management procedure consists of four major steps, including risk identification, assessment, monitoring & control, and reporting, as follows: |
| Management procedure | Contents |
| Risk identification | (1). In response to Regulations planning schedule, the Company identifies the climate risk and opportunity subject to the business characteristics each year.
(2). The Company works with Risk Management Dept. of Coxon to integrate the entire risk identification.
(3). Take into account the climate risk report presented by international institutions. |
| Risk assessment | (1). Subject to the business characteristics, the Company assesses the impact and influence posed by various risks.
(2). The scope of measurement covers impact path ,impact time and geographical scope, location of impact value chain, and financial impact. |
| Risk monitoring and control | (1). Include various industries’ environmental and social risk factors into the industry risk level assessment mechanism.
(2). Monitor the climate risk monitoring and control indicators to control the loss of value caused by the climate risk. |
| Risk reporting | (1). Report the use of various risk indicators or limits to the Audit Committee and the Board of Directors periodically.
(2). Report the climate risk-related information to the independent directors from time to time. |

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5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described.	Currently, scenario analysis has not been used to assess resilience to climate change risks. In the future, we will continue to gather relevant information and plan the assessment of climate scenario types and related indicators, financial impact assessments, etc., to gradually improve our company's climate change response management procedures and climate scenario simulation analysis.
6. If there is a transition plan for managing climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	Type	Climate-Related Risks	Impact Period	Risk Description	Potential Financial Impact	Adaptation and Response Measures
	Transition Risks	Policies and Regulations
		Pricing and Collection of Carbon Tax and Energy Tax	Medium and long term	The carbon fee system leads to the transfer of carbon costs, which may result in higher raw material prices and electricity price increases.	Increase operating costs	We continuously track the trends of carbon fee systems and analyze the impact of carbon fee collection on costs.
		Promote the disclosure of greenhouse gas inventory and reliable information	Medium and term	The consolidated financial statements greenhouse gas inventory must be completed in 2027, and the consolidated financial statements assurance must be completed in 2029. At the same time, carbon reduction targets, strategies and specific action plans must be disclosed.	Increase operating costs	The scope of the investigation will be gradually expanded, and it is planned to introduce Category 3 investigation and conduct third-party verification.
		Technology
		Energy-saving engineering renovation	Medium term	The implementation of carbon reduction and energy conservation strategies and plans requires investment in research and equipment costs.	Increase operating costs	Check the energy consumption of equipment and propose energy-saving improvement plans year by year.
Market

		Market demand changes	short term	Failure to actively cooperate with customer requests to join carbon reduction initiatives and lower the carbon footprint of products may result in a decrease in customer orders.	Loss of customer trust Reduced revenue Increased development costs for low-carbon and energy-saving products	Actively participate in customer carbon reduction initiatives and provide carbon inventory and carbon footprint data to meet customer expectations. Develop recycled materials such as PCR to reduce carbon emissions; the purchase volume of PCR materials in 2014 was approximately 375 tons.
	Entity risk	Immediate
		Extreme weather events	short term	Extreme weather phenomena such as typhoons and torrential rains may cause damage to machinery, personnel, factory buildings and other equipment, and lead to delays or even interruptions in production.	Losses of machinery, factory buildings, and personnel	Conduct emergency response drills for extreme weather events; assess the addition and configuration of disaster prevention equipment.
		Long-term
		Unstable energy supply	Medium term	Green energy policies may lead to power curtailment or unstable peak power supply, affecting equipment operation and increasing operating costs.	Increased cost of backup power generation equipment; production capacity affected.	Implement emergency response drills for public utility outages (power cuts). Continuously monitor electricity consumption and assess the need for additional and configured backup power generation equipment. Replace outdated equipment to reduce electricity consumption.
7.If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	There are currently no plans to use internal carbon pricing, but this will be investigated and evaluated in the future.

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| 8.If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified. | The company uses 2023 as the baseline year for greenhouse gas inventory. Greenhouse gas management covers the entire Group and includes Category 1 (direct emissions), Category 2 (energy-related indirect emissions), and parts of Category 3 (other indirect emissions). The reduction target is set at a gradual decrease year by year until 2030, aiming to achieve a 3-5% annual reduction in carbon intensity.

To ensure the feasibility of achieving these targets, the company has established an annual proposal review and management mechanism. Energy conservation and carbon reduction plans are submitted by various departments, reviewed and integrated by the Sustainability Committee, and performance is measured and disclosed annually based on implementation. |
| --- | --- |
| 9.Greenhouse gas inventory and assurance status (separately fill out in point 1-1 below). | Currently, we are conducting a self-inspection in accordance with the ISO 14064-1 greenhouse gas inspection standard, but have not yet completed the verification. |

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(VI) The state of the Company's implementation of ethical corporate management, any departure of such implementation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such departure

Implementation of ethical management

To establish a ethical corporate culture and achieve sound development, the Company has formulated the Corporate Governance Best Practice Principles, which was approved by the board of directors on November 1, 2010.

Items	Implementation Status			Deviations from “the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
		Yes	No		Descriptions
I.	Establishment of ethical corporate management policies and programs(I)Has the ethical corporate management policies been established and approved by the Board of Directors? Does the Company declare its ethical corporate management policies and procedures in its guidelines and external documents, as well as the commitment from its board to implement the policies?	Yes		(I) The Company's Work Rules clearly stipulate that "employees shall not obtain unlawful gains for oneself or for others in matters under his or her charge or supervision", and employees that violate this rule may be fired. Adhering to the ethical management policy, the Company's board of directors have passed the Ethical Corporate Management Best Practice Principles for compliance. The preventive measures are as follows:1. Signing of the Letter of Undertaking of Integrity with the customer, gifts, entertainment or improper benefits are strictly forbidden, both directly and indirectly.2. Signing of the Employee Confidentiality, Non-Competition and Integrity Agreement with employees, which clearly stipulates that (1) the Company's performance, profits and other business secrets should be kept confidential; (2) employees shall abide by the ethics of business competition; (3) employees shall not have unethical behavior or violate the duties that cause damage to the Company's interests. For any violation, the employee shall bear civil and criminal liabilities. (4) The details of the Company's approved expenditures indicated that there were no illegal political contributions or improper charitable donations.	No difference.
(II)	Has the Company establish a risk evaluation mechanism for unethical conduct, analyze and evaluate operating activities involving highly unethical conduct, and formulate policies to prevent unethical conduct, which at least covers the preventative measures under Paragraph 2 of Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"?	Yes		(II) 1. The Company has performed evaluations on supplier management and customer credit.2. Take details of the Company's approved expenditures indicated that there were no donations or political contributions in 2025.	No difference.
(III)	Does the Company establish policies to prevent unethical conduct with clear statements regarding relevant procedures, guidelines of conduct, punishment for violation, rules of appeal, and the commitment to implement the policies, with review and amendments on a regular basis?	Yes		(III) To avoid discrimination, corruption and illegality, the Company has formulated the Employee Complaint and Reporting Handling Regulations, and has set up a complaints mailbox, rewarded employees for the reporting of illegal (including corruption) and unethical behaviors. After the complaint is confirmed to be true, it shall be improved, or the violator shall be punished. As of the deadline, no employee were reported for any illegal or unethical behaviors.Employee complaints and reporting regulations are amended based on the Company's operating environment and business needs.	No difference.

Items	Implementation Status			Deviations from “the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Descriptions
II. Implementation of ethical management
(I) Has the Company assess a trading counterpart’s ethical management record, and expressly states the ethical management clause in the contract to be signed with the trading counterpart?
(II) Does the Company have a unit that specializes in business integrity? Does this unit report ethical corporate management policies and preventive measures for unethical conduct to the Board of Directors on a regular basis (at least once every year), and supervise the implementation status?	Yes		(I) The Company focuses on the implementation of integrity clauses when signing the major contracts related to the Company's business activities, clearly stipulating the rules of ethical behavior in the signed contracts, attaching great importance to industry comments, and setting up ratings based on the procedures.
(II) Currently, the Sustainable development Committee concurrently manage business integrity, and reports the implementation status to the board of directors every year. The implementation status for 2025 will be reported by the General Manager’s Office to the board of directors in November 2025, which is briefly described as follows:
1. The percentage of suppliers that signed the integrity commitment is 95.18%, which increased by 0.65% compared with that in 2024, while the Company’s target percentage is set at 100%.
2. Reporting the education and training results related to employee ethical management. From January to September 2025, the Company conducted employee education and training courses related to ethical management. The course content is presented on slideshows. 31 classes were held in the East China and South China region, with 235 participants, and total training hours of 386 hours. The participants shall rate the level of satisfaction on the teaching content, and the education training center also evaluated the learning materials to ensure the quality of the teaching.
3. Implementation of the whistleblower system: In 2025, three cases were filed in the East China region following due process: complaints or reports regarding cafeteria food improvement, inappropriate physical contact, and dormitory leak management. After the management department confirmed the complaints, improvements were implemented to ensure compliance with regulations..	No difference.
(III) Has the Company defined any policy against conflict of interest, provides adequate channel thereof, and fulfills the same precisely?	Yes		Included to Canteen tableware cleaning and suggestions for installing insulation equipment, when cases finished improvements , Implementation results complaints freeback to the complainant .	No difference.
(IV) Has the Company implemented effective accounting and internal control systems for maintaining business integrity? Did the internal audit unit formulate relevant audit plans based on risk assessment results of unethical conduct, with inspection on the implementation of preventing unethical conduct, or are these systems reviewed by external auditors?	Yes		(III) The Company's Work Rules have stipulated regulations for avoiding illegitimate interests, and the violator shall be fired if the situation is deemed serious. In addition, a complaints mailbox is provided as a channel for whistleblower in accordance with the Employee Complaint and Reporting Handling Regulations.
(IV) The Company's accounting system refers to the Securities and Exchange Act, the Company Act, Business Entity Accounting Act, Regulations Governing the Preparation of Financial Reports by Public Companies, as well as the IFRS, IAS, and other relevant laws and regulations approved by the Financial Supervisory Commission, and Company’s business status. The internal control system was established and implemented according to the Regulations Governing Establishment	No difference.

55 -

Items	Implementation Status			Deviations from “the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Descriptions
			of Internal Control Systems by Public Companies. The audit department also reviews the compliance of the accounting system and internal control system, which are then reported to the board of directors. Currently, for the risk assessment of unethical behavior, the audit department has conducted supplier management and customer credit, which are implemented based on the audit report.
(V) Did the Company provide internal and external training on ethical operation on a regular basis?	Yes		(V) The Company has established an education and training center in 2009, and planned on comprehensive employee education and training courses. In 2025, there were a total of 42 internal and external education and training courses related to integrity management, including employee ethics training and international anti-corruption, with 55.5 hours of training, participated by 315 employees, while the total number of training hours was 536 hours.	No difference.
III. Status of the Company’s complaint system
(I) Has the Company defined a specific complaints and rewards system, and established some convenient complaint channel, and assigned competent dedicated personnel to deal with the situation?	Yes		(I) The Company has formulated the Employee Complaint and Reporting Handling Regulations, which clearly stipulates the whistleblowing channels and the responding units. Each factory also provides a complaints mailbox for whistleblowers. In 2025, three cases were filed in the East China region following due process: complaints or reports regarding cafeteria food improvement, inappropriate physical contact, and dormitory leak management. After the management department confirmed the complaints, improvements were implemented to ensure compliance with regulations..After the completion, the complaints were reported back to the employees..	No difference.
(II) Has the Company implemented any standard procedures, follow-up measures after the inspection, or confidentiality measures for handling reported misconducts?	Yes		(II) The Company has established the standard operating procedures for the complainant or whistleblower to compliance, stipulating that the responsible unit must respond to the complaint or whistleblower within two weeks, and report to the Board of Directors at the end of the fiscal year.	No difference.
(III) Did the Company adopt measures that protect the whistleblower from improper treatment due to the report?	Yes		(III) The Company adheres confidentiality and protection policies for complainants or whistleblowers, and strictly prohibits public disclosure during the handling period by imposing penalties, in order to protect the whistleblower from improper treatment due to the report.	No difference.
IV. Enhancing Information Disclosure
(I) Has the Company disclosed the Ethical Corporate Management Best Practice Principles and effect of implementation thereof on its website and Market Observation Post System?	Yes		The Company discloses information and promotion results of ethical management on its official website.
To ensure the effective utilization of R&D results and the protection of related rights, prevent infringement of intellectual property rights, and preserve their economic value, our company established the "Operational Procedures for the Acquisition, Maintenance, and Use of Intellectual Property Rights" in	No difference.

56 -

Items	Implementation Status
	Yes	No	Descriptions
		December 2014. Annual audit plans have been scheduled and audited since 2015, and reports are submitted to the Board of Directors annually. The report for November 2025 is as follows: Patent application evaluation considers customer needs, consumer trends, and technological development trends, and is led by the General Manager and executed by the R&D department. After patent development at the production base is completed, the Taiwan R&D department commissions external professional firms to assist in applying for patents in multiple countries.
The list of intellectual property/results is as follows:
		Status	Trademark	Patent
		Valid	12	17
		Application in progress	0	0
		The intellectual property rights verification has been completed by the audit office this year, and no major anomalies were found.
V. If the Company has established ethical management principles based on “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies,” please describe any discrepancy between the principles and their implementation:
None.
VI. Other important information to facilitate better understanding of the Company’s corporate social responsibility practices (such as the Company’s discussions and amendment of the ethical management principles):
Please refer to the Company’s official website for details.

(VII) The other important information that is sufficient to enhance the understanding of corporate governance operations:
To establish a sound mechanism for the handling and disclosure of material inside information, avoid information leakage, and ensure consistency and correctness of the information disclosed, the Company has formulated the Procedures for Handling Material Inside Information, which have been approved by the board of directors on March 25, 2010. In addition to the announcements and advocacy to employees and managers at meetings on an irregular basis, please refer to the Company's official website for other related information: http://www.coxongroup.com/?page_id=1864⟨=en

(VIII) Internal control system implementation status

Internal Control System Statement

Coxon Precise Industrial Co., Ltd.
Internal Control System Statement

Date: March 12, 2026

Based on the findings of a self-evaluation, the Company states the following with regard to its internal control system during the year 2025:

I. The Company's board of directors and management are responsible for establishing, implementing, and maintaining an adequate internal control system and have already established it. Its purpose is to provide reasonable assurance over the effectiveness and efficiency of our operations (including profitability, performance and safeguarding of assets); the report has reliability, timeliness, transparency; it is compliance with applicable rulings, laws and regulations.

II. An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of accomplishing its three stated objectives above. Moreover, the effectiveness of an internal control system may be subject to changes due to extenuating circumstances beyond our control. Nevertheless, our internal control system contains self monitoring mechanisms, and the Company takes immediate remedial actions in response to any identified deficiencies.

III. The Company evaluates the design and operating effectiveness of its internal control system based on the criteria provided in the Regulations Governing the Establishment of Internal Control Systems by Public Companies (hereinafter referred to as "the Regulations"). The criteria adopted by the Regulations identify five key components of managerial internal control: i. control environment, ii. risk assessment, iii. control activities, iv. information and communication, and v. monitoring activities. Each component in turn consists of several items. For the aforementioned items, please refer to the Regulations.

IV. The Company has evaluated the design and operating effectiveness of its internal control system according to the aforesaid Regulations.

V. Based on the findings of such evaluation, the Company believes that, on December 31, 2025 it has maintained, in all material respects, an effective internal control system (that includes the supervision and management of our subsidiaries), to provide reasonable assurance over our operational effectiveness and efficiency, reliability, timeliness, transparency of reporting, and compliance with applicable rulings, laws and regulations.

VI. This Statement is an integral part of the Company's annual report for the year 2025 and prospectus, and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

VII. This statement was passed by the board of directors in their meeting held on March 12, 2026, with none of the nine attending directors expressing dissenting opinions, and the remainder all affirming the content of this Statement.

Coxon Precise Industrial Co., Ltd.
Chairman: Hong, Huan-Ching

General Manager: Chang, Wen-Tung

If CPA was engaged to conduct a Special Audit of Internal Control System, Provide Its Audit Report: Not applicable.

(IX) Shareholder meeting(s), significant board resolutions and its implementation status during the most recent year and up to the date of publication of this annual report:

Shareholder meeting resolutions and its implementation status in 2025
1. 2024 Business Report and Financial Statements.
2. 2024 Deficit Earnings Distribution.
3. It is proposed to conduct private placement of ordinary shares.
Implementation status: Terminate.
4. Partial amendments to “Articles of Incorporation”.
5. Cash Distributions from Capital Surplus.
Implementation status: The record date was set at July 20, 2025 and and the dividends are paid fully on (NT$0.70 per share in cash) at August 7, 2025.
6. Re-election of directors
7. Discussion to approve the lifting of non-competition restrictions for directors and the legal person it represents.

59 -

Board Resolutions

Date	Board Resolutions	Implementation status
2025/05/13	Discussions: 1. The Company’s consolidated financial statements for the 1st quarter of 2025 2. Authorized the chairman to handle bank credit matters.	1. Completed. 2. Completed.
2025/06/26	Discussions: 1. Appointment of Chairman and Vice-Chairman.	1. Completed.
2025/08/12	Discussions: 1. The Company’s coWAnsolidated financial statements for the 2nd quarter of 2025 2. Appointment of the Compensation Committee's members. 3. Approved the Sustainability Report of year 2024.	1. Completed. 2. Completed. 3. Completed.
2025/11/13	Discussions: 1. The Company’s coWAnsolidated financial statements for the 3rd quarter of 2025 2. Approved the remuneration of independent directors. 3. Approved the definition of Junior Employees and amendments of Internal Control 4. Approved the rule of organization of Sustainable Development Committee. 5. Appointment of Sustainable Development Committee members.	1. Completed. 2. Completed. 3. Completed. 4. Completed. 5. Completed.
2025/12/23	Discussions: 1. Approval of the 2025Audit Plan. 2. Approval of the 2025 Budget and Business Plan. 3. Amendments of Internal Control	1. Completed. 2. Completed. 3. Completed.
2026/03/12	Discussions: 1. Approval of the 2025 Business Report and Financial Statements. 2. Approval of the distribution of directors' remuneration and employee remuneration for the 2025 fiscal year. 3. Approval of the 2025 distribution of earnings. 4. Approval of the 2025 Internal Control System Statement. 5. Amendment of the upper limit for junior employee 6. Approval for evaluation of CPA’s independence and competency. 7. Approval of appointment of CPA. 8. Approval for preapproval of non-assurance services provided by Deloitte & Touche and its affiliated enterprises to the Company and Subsidiaries. 9. Approval of cash distributions from capital surplus. 10. The private placement of ordinary shares approved of to the Company’s 2025 Annual General Meeting will Terminate. 11. It is proposed to conduct private placement of ordinary shares 12. Formulation of supplementary matters related to the Company’s 2026 Annual General Meeting.	1. Waiting for approval by the shareholders’ meeting. 2. Completed 3. Waiting for approval by the shareholders’ meeting. 4. Completed. 5. Completed. 6. Completed. 7. Completed. 8. Completed. 9. Waiting for report by the shareholders’ meeting. 10. Waiting for report by the shareholders’ meeting. 11. Waiting for approval by the shareholders’ meeting. 12. In progress.

(X)Documented opinions or declarations made by directors against board resolutions in the most recent year, up till the publication date of this annual report: None.

IV. Professional Fees to the CPA
Units: NT\$thousand

Accounting firm name	Audit Period	Name of Auditor	Audit Fee	Non-audit fee	Total	Remarks
Deloitte & Touche Taiwan	2025.01.01~2025.12.31	Ming-Chung Hsieh	3,180	275	3,455	NT$200,000 for transfer pricing, and Appraisal report review, Investment Committee - Post-event withdrawal of $45,000, Caymen document notarization $30,000
		Pan-Fa Wang

Note: If the CPAs or public accounting firms for the Company were replaced during the year, the duration of their audit engagement should be separately disclosed, and the reason for replacement should be explained in the remark section, and information such as audit and non-audit fees paid should be disclosed in said sequence.

Non-audit fees paid as well as the details of non-audit services.

If the professional audit fee has decreased by more than 10% compared with the previous year, the decreased amount, proportion and reason for the reduction of professional audit fee shall be disclosed:

Units: NT\$thousand

Reduced Fee	Reduced %	Reason
0	0%

V. Information on Replacement of CPAs: None in the current year.

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

(I) Changes of directors, managers or shareholders holding greater than a 10 percent stake in the Company:

Units: Thousand shares

Title	Name	2025		As of April 17, 2026
		Increase (decrease) in number of shares held	Increase (decrease) in number of shares for equity pledge	Increase (decrease) in number of shares held	Increase (decrease) in number of shares for equity pledge
Chairman	Hong, Huan-Ching	0	0	0	0
Vice Chairman	Wu, Wen-Hsiang	(17)	0	0	0
Director	Chang, Wen-Tung	0	0	0	0
Director	Lu, Kuo-Liang	0	0	0	0
Director	Hsieh, Jen-Chien	0	0	0	0
Director	Hsu, Chia-Hung	0	0	0	0
Independent Director	Wu, Teng-Tsan	0	0	-	-
Independent Director	Chen, Ming-Der	0	0	-	-
Independent Director	Lin, Chih-Chen	0	0	0	0
Independent Director	Fang,Hsueh-Che	0	0	0	0
Independent Director	Chang,Sbu-Chuan	0	0	0	0
General Manager	Chang, Wen-Tung	0	0	0	0
General Manager	Hsu, Chia-Hung	0	0	0	0
General Manager	Hsieh, Jen-Chien	0	0	0	0

Note 1: There were no major shareholders holding more than 10% of the shares.

(II) Information on equity transfer by a director, managerial officer, or major shareholder: None.

(III) Information on equity pledge by a director, managerial officer, or major shareholder: None.

VIII. Relationship Information, If Among the Company's 10 Largest Shareholders Any One is a Related Party or a Relative Within the Second Degree of Kinship of Another:

Relationship information among the Company's 10 largest shareholders
April 17, 2026
Units: thousand shares; %

Name	Shareholding		Spouse & Minor Shareholding		Total shareholding in the name of others		Relationship Information, If Among the Company's 10 Largest Shareholders Any One is a Related Party or a Relative Within the Second Degree of Kinship of Another		Remark
	Shares	%	Shares	%	Shares	%	Name	Relation
Chang, Wen-Tung	4,018	3.30	1,210	0.99	-	-	Zheng, Xue-mei	Spouse	-
Hong, Huan-Ching	3,346	2.75	612	0.50	-	-	-	-	-
Wu, Wen-Hsiang	3,127	2.57	1,817	1.49	-	-	Chung, Hsiu-Yu Wu, Ying-Chi Wu, I-TA	Spouse Daughter Daughter	-
Hefeng United Co., Ltd.	2,000	1.64
Chung, Hsiu-Yu	1,817	1.49	3,127	2.57	-	-	Wu, Wen-Hsiang Wu, Ying-Chi Wu, I-TA	Spouse Daughter Daughter	-
Fuji Seiki Co., Ltd. Investment Account Entrusted to China Trust Commercial Bank	1,600	1.32	-	-	-	-	-	-
Liu, Chao	1,562	1.28	-	-	-	-	-	-	-
Wu, Ying-Chi	1,525	1.25	-	-	-	-	Wu, Wen-Hsiang Chung, Hsiu-Yu Wu, I-TA	Father Mother Elder brother	-
Wu, I-TA	1,265	1.04	-	-	-	-	- Wu, Wen-Hsiang Chung, Hsiu-Yu Wu, Ying-Chi	Father Mother Younger sister	-
Zheng, Xue-mei	1,210	0.99	4,018	3.30	-	-	Chang, Wen-Tung	Spouse	-

The Total Number of Shares and Total Equity Stake Held in Any Single Enterprise By the Company, Its Directors, Supervisors, Managers, and Any Companies Controlled Either Directly or Indirectly By the Company

Total Equity Stake

April 17, 2026

Units: thousand shares; %

Investments	Owned by the Company		Owned by Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, heads of various departments and branches, and enterprises directly or indirectly controlled by the Company		Total Investment
	Shares	%	Shares	%	Shares	%
None

Note 1: Investments accounted for using equity method.

63 -

Three. Capital Overview

I. Capital and Shares

(I) Source of Capital:

The formation of capital
April 17, 2026

Year/month	Issue Price (Book value per share)	Registered Capital		Total Paid-in Capital		Remarks
		Number of Shares (Thousand Shares)	Amount (NT$thousand)	Number of Shares (Thousand Shares)	Amount (NT$thousand)	Source of Capital	Non-cash assets are offset against share payments	Other
1989/06	10	3,200	32,000	3,200	32,000	Initial capital of NT$32,000 thousand	None	Note 1
1994/07	10	5,000	50,000	5,000	50,000	Cash capital increase of NT$18,000 thousand	None	Note 2
1998/01	10	8,000	80,000	8,000	80,000	Cash capital increase of NT$30,000 thousand	None	Note 3
2000/08	10	12,000	120,000	12,000	120,000	Cash capital increase of NT$32,000 thousandCapital increase of NT$8,000 thousand by earnings	None	Note 4
2003/10	10	15,500	155,000	15,500	155,000	Cash capital increase of NT$35,000 thousand	None	Note 5
2004/04	10	18,600	186,000	18,600	186,000	Cash capital increase of NT$31,000 thousand	None	Note 6
2004/07	10	28,000	280,000	28,000	280,000	Cash capital increase of NT$94,000 thousand	None	Note 7
2004/11	10	115,000	1,150,000	52,000	520,000	Cash capital increase of NT$240,000 thousand	NT$74,069 thousand offset by creditor's rights	Note 8
2005/09	10	115,000	1,150,000	71,000	710,000	Cash capital increase of NT$190,000 thousand	None	Note 9
2006/12	10	115,000	1,150,000	91,500	915,000	Cash capital increase of NT$190,000 thousandBonus-shares capital increase of NT$15,000 thousand	None	Note 10
2007/07	10	115,000	1,150,000	93,500	935,000	Bonus-shares capital increase of NT$20,000 thousand	None	Note 11
2007/10	10	115,000	1,150,000	100,000	1,000,000	Cash capital increase of NT$65,000 thousand	None	Note 12
2008/09	10	115,000	1,150,000	102,000	1,020,000	Bonus-shares capital increase of NT$20,000 thousand	None	Note 13
2009/11	10	150,000	1,500,000	114,488	1,144,880	Cash capital increase of NT$117,330 thousand, and NT$7,550 thousand employee stock options converted into common stock	None	Note 14
2010/03	10	150,000	1,500,000	114,605	1,146,050	NT$1,170 thousand employee stock options converted into common stock	None	Note 15
2010/05	10	150,000	1,500,000	114,645	1,146,450	NT$4,000 thousand employee stock options converted into common stock	None	Note 16
2010/11	10	150,000	1,500,000	115,061	1,150,610	NT$4,160 thousand employee stock options converted into common stock	None	Note 17
2011/04	10	150,000	1,500,000	115,376	1,153,760	NT$3,150 thousand employee stock options converted into common stock	None	Note 18
2011/07	10	150,000	1,500,000	115,392	1,153,920	NT$160 thousand employee stock options converted into common stock	None	Note 19
2011/09	10	150,000	1,500,000	115,440	1,154,400	NT$480 thousand employee stock options converted into common stock	None	Note 20
2012/01	10	150,000	1,500,000	111,440	1,114,400	Cancellation of treasury stock of NT$40,000 thousand	None	Note 21
2012/04	10	150,000	1,500,000	111,443	1,114,430	NT$30 thousand employee stock options converted into common stock	None	Note 22
2012/07	10	150,000	1,500,000	111,834	1,118,340	NT$3,910 thousand employee stock options converted into common stock	None	Note 23
2012/09	10	150,000	1,500,000	111,918	1,119,180	NT$840 thousand employee stock options converted into common stock	None	Note 24
2012/12	10	150,000	1,500,000	112,424	1,124,240	NT$5,060 thousand employee stock options converted into common stock	None	Note 25
2013/04	10	150,000	1,500,000	112,710	1,127,100	NT$2,860 thousand employee stock options converted into common stock	None	Note 26
2013/05	10	150,000	1,500,000	117,874	1,178,741	NT$780 thousand employee stock options converted into common stock; conversion of bonds of NT$50,861 thousand	None	Note 27

(Continued)

Year/month	Issue Price (Book value per share)	Registered Capital		Total Paid-in Capital		Remarks
		Number of Shares (Thousand Shares)	Amount (NT$thousand)	Number of Shares (Thousand Shares)	Amount (NT$thousand)	Source of Capital	Non-cash assets are offset against share payments	Other
2013/09	10	150,000	1,500,000	117,938	1,179,381	NT$640 thousand employee stock options converted into common stock	None	Note 28
2013/12	10	150,000	1,500,000	118,338	1,183,384	NT$3,900 thousand employee stock options converted into common stock; conversion of bonds of NT$103 thousand	None	Note 29
2014/03	10	150,000	1,500,000	118,484	1,184,844	NT$1,460 thousand employee stock options converted into common stock	None	Note 30
2014/06	10	150,000	1,500,000	118,718	1,187,184	NT$2,340 thousand employee stock options converted into common stock	None	Note 31
2014/09	10	150,000	1,500,000	118,973	1,189,734	NT$2,550 thousand employee stock options converted into common stock	None	Note 32
2014/12	10	150,000	1,500,000	119,083	1,190,834	NT$1,100 thousand employee stock options converted into common stock	None	Note 33
2015/05	10	150,000	1,500,000	119,244	1,192,244	NT$1,410 thousand employee stock options converted into common stock	None	Note 34
2015/05	10	150,000	1,500,000	124,227	1,242,273	NT$480 thousand employee stock options converted into common stock; convertible bonds of NT$49,549 thousand	None	Note 35
2015/09	10	150,000	1,500,000	124,572	1,245,718	NT$70 thousand employee stock options converted into common stock; conversion of bonds of NT$3,375 thousand	None	Note 36
2016/01	10	150,000	1,500,000	125,151	1,251,512	Conversion of bonds of NT$5,794 thousand	None	Note 37
2017/03	10	150,000	1,500,000	121,662	1,216,622	Cancellation of treasury stock of NT$34,890 thousand	None	Note 38
2019/07	10	210,000	2,100,000	121,662	1,216,622	Increase in registered Capital	None	Note 39

Note 1: June 14, 1989, Jing-Shang-Zi No. 78101758
Note 3: January 22, 1998, Jing-(87)-Shang-Zi No. 101425
Note 5: October 28, 2003, Jing-Shou-Zhong-Zi No. 09232857520
Note 7: July 2, 2004, Jing-Shou-Zhong-Zi No. 09332350680
Note 9: September 14, 2005, Jing-Shou-Shang-Zi No. 09401179400
Note 11: July 11, 2007, Jing-Shou-Shang-Zi No. 09601157800
Note 13: September 8, 2008, Jing-Shou-Shang-Zi No. 09701231300
Note 15: March 16, 2010, Jing-Shou-Shang-Zi No. 09901050020
Note 17: November 18, 2010, Jing-Shou-Shang-Zi No. 09901256490
Note 19: July 21, 2011, Jing-Shou-Shang-Zi No. 10001160960
Note 21: January 17, 2012, Jing-Shou-Shang-Zi No. 10101010670
Note 23: July 25, 2012, Jing-Shou-Shang-Zi No. 10101152380
Note 25: December 20, 2012, Jing-Shou-Shang-Zi No. 10101258670
Note 27: May 27, 2013, Jing-Shou-Shang-Zi No. 10201098220
Note 29: December 18, 2013, Jing-Shou-Shang-Zi No. 10201257460
Note 31: June 30, 2014, Jing-Shou-Shang-Zi No. 10301113390
Note 33: December 31, 2014, Jing-Shou-Shang-Zi No. 10301259350
Note 35: May 27, 2015, Jing-Shou-Shang-Zi No. 10401093990
Note 37: January 11, 2016, Jing-Shou-Shang-Zi No. 10501002500
Note 39: July 8, 2019, Jing-Shou-Shang-Zi No. 10801077730

Note 2: July 28, 1994, 83 Jian-San-Yi-Zi No. 413580
Note 4: August 5, 2000, Jing-(89)-Shang-Zi No. 128087
Note 6: April 1, 2004, Jing-Shou-Zhong-Zi No. 09331909780
Note 8: November 26, 2004, Jing-Shou-Shang-Zi No. 09301218600
Note 10: December 15, 2006, Jing-Shou-Shang-Zi No. 09501279390
Note 12: October 16, 2007, Jing-Shou-Shang-Zi No. 09601251700
Note 14: November 24, 2009, Jing-Shou-Shang-Zi No. 09801271960
Note 16: May 19, 2010, Jing-Shou-Shang-Zi No. 09901101830
Note 18: April 22, 2011, Jing-Shou-Shang-Zi No. 10001076780
Note 20: September 19, 2011, Jing-Shou-Shang-Zi No. 10001217390
Note 22: April 16, 2012, Jing-Shou-Shang-Zi No. 10101067830
Note 24: September 18, 2012, Jing-Shou-Shang-Zi No. 10101194440
Note 26: April 22, 2013, Jing-Shou-Shang-Zi No. 10201070000
Note 28: September 24, 2013, Jing-Shou-Shang-Zi No. 10201193260
Note 30: April 17, 2014, Jing-Shou-Shang-Zi No. 10301069370
Note 32: September 23, 2014, Jing-Shou-Shang-Zi No. 10301194830
Note 34: May 7, 2015, Jing-Shou-Shang-Zi No. 10401078820
Note 36: September 11, 2015, Jing-Shou-Shang-Zi No. 10401187720
Note 38: March 27, 2017, Jing-Shou-Shang-Zi No. 10601037170

Share type
April 17, 2026

Share type	Registered Capital			Remark
	Outstanding shares	Un-issued shares	Total
Registered common shares	121,662 thousand shares	88,338 thousand shares	210,000 thousand shares

Note: Shares of TWSE-listed companies.

Information related to shelf registration: None.

(II) Major Shareholders:
Units: thousand shares; %

| Share
Name of Major Shareholder | Number of
Shares | % |
| --- | --- | --- |
| Chang, Wen-Tung | 4,018 | 3.30 |
| Hong, Huan-Ching | 3,346 | 2.75 |
| Wu, Wen-Hsiang | 3,127 | 2.57 |
| Hefeng United Co., Ltd. | 2,000 | 1.64 |
| Chung, Hsiu-Yu | 1,817 | 1.49 |
| Fuji Seiki Co., Ltd. Investment Account Entrusted to China Trust Commercial Bank | 1,600 | 1.32 |
| Liu, Chao | 1,562 | 1.28 |
| Wu,Ying-Chi | 1,525 | 1.25 |
| Wu, I-TA | 1,265 | 1.04 |
| Zheng, Xue-mei | 1,210 | 0.99 |

(III) Dividend Policy and Implementation:

Dividend policy

If the Company earned profits in the current fiscal year, it shall allocate 3%-12% as employee compensation by way of cash or shares by the resolution of the Board of Directors (At least 5% of the total employee compensation should be allocated to junior employees.). Qualification requirements of employees include the employees subsidiaries of the Company meeting certain specific requirements. The Company may set aside no more than 3% for the remuneration of directors by way of cash. However, a reserve is allotted to be used to make up for the Company's accumulated losses. If after the annual closing of books there is a profit, the Company shall, after its losses have been covered and all taxes and dues have been paid and at the time of allocating surplus profits, first set aside ten percent of such profits as a legal reserve. However, when the legal reserve amounts already reached the authorized capital, this shall not apply. The special reserves shall be set aside or reversed in accordance with the laws or regulations of the competent authority. If there is still balance, the board of directors shall make a surplus distribution proposal. Surplus profit shall be distributed in the form of new shares by resolution of the shareholders' meeting.

In accordance with Paragraph 5, Article 240 of the Company Act, the Company may authorize the distributable dividends and bonuses in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; or distribute its legal reserve and the following capital reserve, in whole or in part by cash according to Paragraph 1, Article 241 of the Company Act; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting.

The Company's dividend policy is based on the current status and future development plans, considering the investment environment, capital needs and domestic and foreign competition, taking into account the shareholder interests and other factors. When there is no accumulated losses from prior years, the Company shall allocate no less than 50% of profits to shareholders. Distribution of profits may be made by way of a cash dividend or stock dividend; provided, however, the ratio for cash dividend shall be not less than 50% of the total distribution.

66 -

Dividends proposed for discussion in the upcoming shareholder meeting are as follows:

The 2025 Earnings Appropriation Chart has been approved by the board (not shareholder meeting approved) Below are details of the Company's 2025 earnings distribution proposal:

Coxon Precise Industrial Co., Ltd.

2025 Earnings Distribution Proposal

Units: NT$

Unappropriated earnings at the beginning of the period		0
Add:Current net income		2,209,581
Add: Remeasurement of defined benefit plan under		884,617
Provision items
Provision for legal reserve		309,420
Provisions for special reserve		2,784,778
Distributable earnings		0

(IV) Impacts of proposed stock dividends on the Company's business performance and earnings per share in the upcoming shareholder meeting:

Not applicable as the Company has no distribution plan for stock dividends.

(V) Employees' compensation and remuneration of directors:

Percentage or range of employee/ director/ supervisor remuneration stated in the Articles of Incorporation:

Article 30 of the Company's Articles of Incorporation—

If the Company earned profits in the current fiscal year, it shall allocate 3%-12% as employee compensation by way of cash or shares by the resolution of the Board of Directors (At least 5% of the total employee compensation should be allocated to junior employees.). Qualification requirements of employees include the employees subsidiaries of the Company meeting certain specific requirements The Company may set aside no more than 3% for the remuneration of directors by way of cash. However, a reserve is allotted to be used to make up for the Company's accumulated losses. If after the annual closing of books there is a profit, the Company shall, after its losses have been covered and all taxes and dues have been paid and at the time of allocating surplus profits, first set aside ten percent of such profits as a legal reserve. Except for distribution of dividends, if there is still balance, the board of directors shall make a surplus distribution proposal, and surplus profit shall be distributed by resolution of the shareholders' meeting. The distribution methods are as follows:

Allocate 3%-12% as employee compensation
Set aside no more than 3% for the remuneration of directors
Shareholder dividends and bonuses

Qualification requirements of employees for the above-mentioned employee compensation include the employees of the Company's subsidiaries meeting certain specific requirements.

The basis for estimating the amount of employee, director, and supervisor compensation, for calculating the number of shares to be distributed as employee compensation, and the accounting treatment of the discrepancy, if any, between the actual distributed amount and the estimated figure, for the current period:

The estimated amount of compensation for employees, directors for the current period shall be calculated based on the payment level in previous years, and the actual amount of profit. The estimated amount shall not exceed the scope stipulated in the Company's Articles of Incorporation. The Company did not distribute stock dividends in the current period. If there is any discrepancy between the actual distributed amount and estimated amount of compensation for employees, directors, it will be considered an accounting estimation, and recognized as profit/loss in current year of distributions made.

Information on any approval by the board of directors on the distribution of employee compensation:

(1) The amount of any employee compensation distributed in cash or stocks and compensation for directors. If there is any discrepancy between that amount and the estimated figure for the fiscal year these expenses are recognized, the discrepancy, its cause, and the status of treatment shall be disclosed:

In 2026/3/12 accordance with that been approved by the board the company allocated no directors' remuneration and employees' remuneration of NT$100,000 (Among them, the remuneration for grassroots employees is 30,000). Amounts were fully paid in cash and the actual amounts paid were not different from the expenses recognized in 2025.

Junior Employees: The company's junior employee compensation system is based on with remuneration distribution adjusted after considering seniority and annual performance reviews to incentivize all employees to work together towards company goals. Employee compensation is calculated and distributed to employees in accordance with the Company's Articles of Association, with no less than 3% allocated to the employees for each year. In 2026, the Company's Board of Directors resolved to allocate 5.27% of the 2025 profits, distributing 30% as compensation to Junior employees.

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

(3) Earnings per share estimated in consideration of the distribution of employee compensation and remuneration for directors: $0.02.

The actual distribution of employee, and director compensation for the previous fiscal year (with an indication of the number of shares, monetary amount, and stock price, of the shares distributed), and, if there is any discrepancy between the actual distribution and the recognized employee, director compensation, additionally the discrepancy, cause, and how it is treated:

On March 12, 2026, the Board of Directors of the Company resolved to distribute cash bonuses of NT$100,000 (Among them, the remuneration for grassroots employees is 30,000) to employees for the 2025 fiscal year, and no directors' remuneration, which is no different from the amount estimated by the Company.

(VI) Status of a company repurchasing its own shares: None in the current year.

II. Corporate bonds: None in the current year.

III. Preferred shares: None in the current year.

IV. Global Depository Receipts: None in the current year.

V. Employee stock warrants: None in the current year.

VI. Restricted stock and Status of New Shares Issuance in Connection with Mergers and Acquisitions: Not applicable.

VII. The Status of Implementation of Capital Allocation Plans:

For the period as of the quarter preceding the date of publication of the annual report, the public issue of securities has been completed, and such issues have already fully yielded the planned benefits.

68 -

Four. Operational Highlights

I. Business Activities

(I) Business scope

Summary of main business activities:

Main businesses:

(1) C805050 Industrial Plastic Products Manufacturing
(2) CQ01010 Mold and Die Manufacturing
(3) CC01060 Wired Communication Mechanical Equipment Manufacturing
(4) CC01070 Wireless Communication Mechanical Equipment Manufacturing
(5) CC01080 Electronics Components Manufacturing
(6) F219010 Retail Sale of Electronic Materials
(7) CE01030 Optical Instruments Manufacturing
(8) CC01990 Other Electrical Engineering and Electronic Machinery Equipment Manufacturing
(9) CD01030 Motor Vehicles and Parts Manufacturing
(10) F214030 Retail Sale of Motor Vehicle Parts and Motorcycle Parts, Accessories
(11) F401010 International Trade
(12) ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval.

The Company's current products (services) and relative weight of the major lines of business (consolidated):

Units: NT\$thousand

Major products	Usage of the products	2025
		Net operating revenue	Relative weight (%)
Plastic components	Cell phone case, NB, digital camera, game console, earphone case, etc.	2,270,153	81.54
Molds	-	128,195	4.60
Other	Raw materials trading, etc.	385,948	13.86
Total		3,136,753	100.00

New products

The Company is a professional mold manufacturer and specializes in injection molding. Its main businesses include the mold development and production of components. Over the years, we not only expand the breadth of the product market to avoid the risks from industrial economics, but also showed outstanding performance in surface treatment and optical component production, becoming the designated partner of many international tier 1 manufacturers. In the future, in addition to further development of existing products, we also developed plastic and metal parts applications, with the hope to enable customers to make a one-time shopping of total solution services with the existing technological platform.

(II) An overview of the industry

The current status and development of the industry

The Company's core technology is the development and production of molds. The mold industry is a special industry that is technology-intensive and capital-intensive, with high added value. Molding is a basic tool for the mass production of various end-user products. Therefore, the molding industry is also known as the "mother of industry", which not only improves product sophistication, but also drives

69 -

development and upgrading in the manufacturing industry. In addition, it is a key industry for development in the manufacturing industry. Given a wide variety of mold products and wide range applications, the high-tech and livelihood products all use molds as the basic tool for mass production. Currently, given that the downstream companies are mostly from the 3C industry, while the Company mainly applies it to plastic injection molding. Due to wide range of applications for plastic injection products, the Company's industrial development is closely linked to the needs of various industries, including the automotive industry, IT industry and optical components industry, which are included in the application for injection molding products. Therefore, there are significant changes in the demand for plastic molds, and coupled with increasing market scale and demand year by year, we anticipate that the industry has relatively high growth potential.

To increase the added value of plastic products, the Company has been developing surface treatment technology of plastic substrates over the past years, and was highly praised in the industry for its quality. Currently, the Company's surface treatment technologies include electroplating, sputtering, spraying, evaporation, coating, laser engraving and printing. As plastic materials are widely used in various products, metallizing has a wide range of applications given that it combines the advantages of metal properties and characteristics for the mass production of plastics, and can be applied to consumer 3C electronic products, implying high future market potential.

Links between the upstream, midstream, and downstream segments of the industry supply chain

In terms of supply and demand, the upstream companies of the plastic product industry are plastic raw materials suppliers, while the manufacturers that need plastic casings or plastic injection components, such as the communications, information electronics, consumer electronics, home appliance, medical devices manufacturing and automotive industries are all downstream companies of the plastic product manufacturing industry.

Development trends and competition for the Company's products

① Development trends of the Company's products

Looking forward, the Company will work towards automation, high speed and precision for the production of precision components. The main characteristics are as follows:

A. Equipment automation, production speed, product precision and diversification in appearance

Communication, IT and consumer electronics industries were gradually integrated into a huge 3C industry along with continuous improvement in the digital and manufacturing technologies. However, the products have developed towards light, thin, short and small products, with continuous innovation, which resulted in rapid change in the product life cycle. Therefore, equipment automation, production speed and precision have become the main focus of development in the future. Looking at the current global high-tech products in the electronics, IT and communications industries, the companies will inevitably develop towards light, thin and short products, and the demand for precision components was also relatively higher. Therefore, the manufacturing technology and surface treatment applications of precision parts have become the major manufacturers' main focus of development.

B. Global logistics as the major trend

In recent years, downstream companies have shifted their production bases to overseas countries to cut down production costs. Mold manufacturers have adopted global production and sales strategies, taking into account reducing component and product inventory,

facilitating timely customer services, and shortening delivery time. The Company engages in production in areas with low wage rates, while its Taiwan headquarters is responsible for designing and marketing. Thanks to the capability of mold development and quality control, the manufacturers in Taiwan have developed long-term partnerships with international manufacturers amid rising market demand and intense competition.

② Competition for the Company's products

The Company is a professional manufacturer of injection molded precision parts and surface treatment, with main competitors including Megaforce, Ways Technical, and Nishoku. The main items with competitive advantage cover various plastic injection components and surface treatment.

The greatest difference between the Company and industry peers is that the Company has a comprehensive manufacturing process and production line, which not only covers injection molding and surface treatment, but also spraying, printing, electroplating, sputtering, laser engraving and coating for surface treatment. Since the Company has more than 30 years of experience in mold development, design and manufacturing, it does not need to depend on industry peers. Therefore, the Company's size, production technology and order fulfillment ranked top in the industry.

(III) An overview of the Company's technologies and its research and development work

Technological arrangement in business operations and R&D

The Company's R&D department is responsible for product improvement and new product development. Given that leading technology and automation are the competitive niche for the technological development, the Company attaches great importance to the R&D department's organizational structure, technical training and management. The Company's development, design and manufacturing personnel have received professional training, and its R&D personnel are classified into product R&D, material R&D, customer service and technical support, product engineering, and operating instructions based on their professional skills. The R&D department has complete organizational functions, which can fully support product development and designs. Meanwhile, the Company has maintained close relationships with downstream customers, and can quickly meet customer requirements in terms of product output to usage. Its technology and quality are highly praised by domestic and foreign customers, and its products are manufactured in accordance with the operating standards, followed by self-inspection with all kinds of advanced and precision testing instruments, on various products to ensure product quality. Meanwhile, the Company has signed technical contracts with well-known manufacturers in the U.S., Japan, Germany and other countries with advanced technology, so as to jointly develop and design new products and technologies.

Future R&D planning and estimated investment of research costs:

A. Future R&D planning:

(a) Development introduction and use of paint-free materials:

Development, introduction and use of paint-free materials carbon emissions in the production process can be significantly reduced, providing customers with more choices.

(b) New sputtering process:

The sputtering process can increase the adhesion and stability of metal coatings on plastic products. Meanwhile, the production process is also more environmentally friendly and can be more in line with industry development trends.

B. Estimated investment of research costs:

(a) Development, introduction and use of paint-free materials: The Company has invested NT$0.8 million as R&D expense in 2026.

(b) New sputtering process: The Company has invested NT$1.2 million as R&D expense in 2026.

71 -

Invested research costs (consolidated) for the most recent year and up to the date of publication of the annual report:

Units: NT\$thousand

Item\Year	2025	As of March 31, 2026	2026 Estimated investment of research costs
Research costs	2,666	672	3,100

Successfully developed technology or product

Thin-wall molding, nitrogen-gas assisted molding, vacuum plating, low pressure molding, IMD/IMR, dual color dual material molding, optical coating, high-resolution optical lens and lens group, NCVM, vacuum sputtering, rapid cooling and rapid heating injection molding, and enamel paint spraying on the finished appearance, Development of gradient coating and implementation of PCR material.

(IV) Long and short term plans for business development

Short term plans for business development

A. Marketing strategy

a. Build long-term relationships with the existing customers, and developing relationships with well-known domestic and foreign communication and IT manufacturers.
b. Strengthen communication with customers, in order to understand customer needs and provide customers with services that overcome the time zone obstacle around the world.
c. Improve quality image by obtaining certification from world-class manufacturers.

B. Production strategy

a. Concentrate production and boost equipment utilization.
b. Improve the supporting production system for overseas subsidiaries, with Taiwan as the R&D center to strengthen competitiveness.
c. Continue to implement the ISO 9001 quality system, and cultivate quality control personnel, in order to enhance the quality of the Company and its subsidiaries.

Long term plans for business development

A. Continual investment on technological research and development

In the long run, the Company will continue to launch innovative 3C products, but will face more intense competition from industry peers in the future. Considering that the existing technology will not be sufficient to compete with industry peers, the Company has been introducing new technology, with the hope to achieve better applications and gain a leading position in the industry.

B. Expand customer base to reduce operating risks

Given rapid changes in the 3C industry, the Company has developed relationships with customers in different industries, in order to avoid risks caused by excessive concentration in a single industry, and reduce the impact of industry fluctuations.

C. Expanding financing channels

Obtain relatively low-cost funds through various financial management tools in the capital market to expand the Company's operating scale, and strengthen the financial functions and the Company's financial structure as basis for corporate sustainability.

D. Strengthen employee training and establish corporate culture

In addition to continuously cultivating high-tech and international talents to meet the Company's future goals on diversification, and to gain recognition on its corporate culture, in order to boost corporate development in the future, and establish an organizational culture with the common vision of corporate sustainability.

II. Market and Sales Overview

(I) Market Analysis

Areas/regions of sales of the Company's major products (consolidated)
Units: NT\$thousand

Areas/regions of sales	2024	2025
Taiwan	257,487	151,321
China	2,826,558	2,384,358
USA	2,781	6,792
Japan	260	0
Others	49,667	241,825
Total	3,136,753	2,784,296

Market share

The Company has been engaged in the production of molds and plastic products for more than 30 years, and was highly praised in the industry. Furthermore, the Company's diversified products are widely used in products including smartphones, digital cameras, and CD players. In 2025, the Company's total revenue was NT$2,784,296,000, of which the revenue from plastic injection molding was NT$2,656,101,000 and the revenue from molds was around NT$128,195,000. There is significant difference between the finished products from plastic injection molding, and thus there is no complete and objective market share data as reference.

Market's future supply/demand conditions and development potential

A. Market supply

Manufacturers of 3C products, especially the orders from large Japanese manufacturers, have stringent requirements on product quality and high precision. In terms of market supply, since there are not many foundries that can provide vertical integration services, the Company still has considerable advantages and potential. In the future, we forecast rising demand for 3C products, which may also attract industry peers into manufacturing. Currently, many mainland manufacturers are investing in this sector, increasing market supply.

B. Market demand

In view of global development of 3C industry, there is a growing trend on light, thin and short 3C products, while the international manufacturers continue to work linking product applications with the consumer market, and develop products that are suitable for all level consumers, introducing new products to boost demands in the consumer market. The market is now more mature, with more competitors and fiercer competition than before.

Competitive niche

① The Company has the capability and technology for the vertical integration of plastic products

We have been deeply cultivating the plastic injection industry over the past years, and has capability of vertical integration, providing customers with a one-time shopping services for product design, mold design and manufacturing, plastic injection, painting, printing, laser engraving, secondary processing and assembly. Therefore, the Company has a relatively higher competitive advantage compared with some small factories which only provide partial services.

② Large-scale production capacity with economies of scale

Although the Company's scale has decreased in recent years, we still keep advanced and sophisticated production equipment to correspond to increasing business scale and customer demands on diversified products. In terms of plastic molding and mold processing machines, the Company has obtained a leading position in the industry, and achieved production efficiency to reduce costs, so as to have comparative cost advantage even in face of fierce price competition in the 3C industry.

③ Good customer relationship

Since its establishment, the Company has been committed to improving product quality and shortening delivery time. For many years, it has cooperated with domestic and foreign 3C product manufacturers, and maintained good relationships, so as to quickly seize business opportunities

73 -

along with the customers' development.

Advantageous and disadvantageous factors for future development and response strategies

① Advantageous factors

A. Diversified products and stable customer source

We see steady growth in the 3C industry thanks to support from the government and private sector. In recent years, the popularization of low-cost computers and the Internet has triggered strong demands for IT products. Furthermore, in the advent of the multimedia era and telecommunication liberalization, coupled with global economic recovery, we see high growth potential in the 3C market. Corresponding to the development trend, the Company has developed diversified products to maintain stable customer base, and thus we forecast strong market outlook for the future.

B. The global PC assembly and logistics trends will drive the development of professional component manufacturers

Due to fierce market competition, the overall IT industry is compelled to develop towards global assembly and logistics. Therefore, given fierce competition in the future, the computer and components manufacturers must have good professional skills and competitive advantage to survive in the market. The Company has accumulated more than 30 years of experience and technology in the production of 3C products, and currently has various advanced manufacturing equipment. Since the Company is a professional supplier of 3C plastic parts, the recent development trend should be beneficial for the Company's future development.

C. Product development that is in line with industry trends

With the continuous upgrading of 3C products and demands on product appearance, various surface treatment processes for plastic products has become a major development trend. With that, the Company has been focusing on surface coating, laser engraving, vacuum plating and NCVM over the past years, keeping in line with industry trends to further enhance its profitability.

② Disadvantageous factors and response strategies

A. Short product life cycle which increase corporate management risks

Countermeasures: The innovation of 3C products and shorter life cycle have affected customer orders. In response, the Company adopts Make-To-Order (MTO), strictly controlling the specifications of raw materials, and actively reduces inventory, in order to reduce the loss from obsolete inventory.

B. Continued investment from industry peers and fierce competition

Countermeasures: Continual improvement and introduction of new technologies, shortened molding time, development of high-precision products, maintain close cooperation with existing manufacturers, and stabilize existing markets.

(II) Important use and production process for the major products

Important use for the major products:

Major products	Usage of products (services)
3C plastic parts	Smartphones, digital cameras, game consoles, Smart Speaker, Sport Camera, Robot vacuum, Sorehead Thermometer, Tire inflator optical components, Charging station, etc.
Molds	Smartphones, digital cameras, game consoles, Smart Speaker, Sport Camera, Robot vacuum, Sorehead Thermometer, Tire inflator optical components, Charging station, etc.

Production process for the major products:

(1) Mold production process

(2) Production process for plastic parts

(III) Supply status of the major raw materials

The Company has established good relationships with primary raw material suppliers, and also keep in line with market conditions to for stable purchase price of key raw materials, developing long-term strategic partnerships with manufacturers to obtain stable supply source.

(IV) List of major suppliers and clients

Information on major suppliers in the preceding two fiscal years (consolidated)

Units: NT$thousand

	2025				2024
Item	Name (Note 1)	Amount	Percentage in the Company's net purchases (%)	Relationship with issuer	Name (Note 1)	Amount	Percentage in the Company's net purchases (%)	Relationship with issuer
1	Supplier A	339,808	24.72	Unrelated party	Supplier A	406,947	25.72	Unrelated party

	Other	1,034,747	75.28		Other	1,175,509	74.28
	Net purchases	1,374,555	100.00		Net purchases	1,582,458	100.00

Note 1: List the names of any suppliers that have supplied 10 percent or more of the Company's procurements in either of the preceding 2 fiscal years, and the monetary amount and the proportion of such procurements as a percentage of total procurements; provided however, that where the Company is prohibited by contract from revealing the name of a trading counterpart, or where a trading counterpart is an individual person who is not a related party, a code may be used in place of such trading counterpart's actual name.

Note 2: For the Company whose stock is listed on the stock exchange or traded over-the-counter, if, before the date of publication of the annual report, there is any financial data for the most recent period audited and attested or reviewed by a CPA, it shall also be disclosed therewith.

Explain the reason for any change in the monetary amount of major suppliers in the preceding 2 fiscal years:

The Company mainly produces plastic components for 3C products, with plastic pellets and related components as the main materials required for production. Given a wide variety of material specifications and large number of suppliers in the market, the suppliers are relatively scattered, and the Company will not be easily influenced by any individual supplier.

Information on major clients in the preceding two fiscal years (consolidated)

Units: NT\$thousand

	2025				2024
Item	Name (Note 1)	Amount	Percentage in the Company's net sales (%)	Relationship with issuer	Name (Note 1)	Amount	Percentage in the Company's net sales (%)	Relationship with issuer
1	Customer A	343,030	12.32	Unrelated party	Customer A	486,574	15.51	Unrelated party
2	Customer B	171,479	6.16	Unrelated party	Customer B	353,324	11.26	Unrelated party
3	Customer C	338,488	11.24	Unrelated party	Customer C	176,402	5.61	Unrelated party
	Other	1,931,299	70.28		Other	2,120,453	67.62
	Net sales	2,784,296	100.00		Net sales	3,136,753	100.00

Note 1: List the names of any clients that have sold 10 percent or more of the Company's sales in either of the preceding 2 fiscal years, and the monetary amount and the proportion of such sales as a percentage of total sales; provided however, that where the Company is prohibited by contract from revealing the name of a trading counterpart, or where a trading counterpart is an individual person who is not a related party, a code may be used in place of such trading counterpart's actual name.
Note 2: For the Company whose stock is listed on the stock exchange or traded over-the-counter, if, before the date of publication of the annual report, there is any financial data for the most recent period audited and attested or reviewed by a CPA, it shall also be disclosed therewith.
Explain the reason for any change in the monetary amount of major clients in the preceding 2 fiscal years:
The Company has been established for more than 30 years, and has successfully expanded customer relationships. The Company's customers cover Taiwan, Japan and China, while the Company's products are widely used in components required by various 3C industries, and thus the customers are relatively scattered, and the Company will not be influenced by any individual customer.

Year		2025	2024	As of April 17, 2026
Number of employees	Managerial officers	35	39	35
	General employees	524	610	498
	Total	559	649	533
Average age		41.56	41.01	41.58
Average employee tenure		13.87	13.34	14.11
Education background %	PhD	0.00%	0.00%	0.00%
	Master	0.54%	0.31%	0.57%
	Bachelor	25.08%	22.34%	25.55%
	High school	37.22%	38.08%	37.55%
	Below high school	37.16%	39.27%	36.33%

Note: As of the date of publication of the annual report.

IV. Disbursements for Environmental Protection

(I) Losses (including remedial measures), total amount of penalties (including remedies) and total expenditures related to environmental pollution (including the estimated amount of compensation, fines or penalties due to failure in taking responsive action. If it is not feasible to make a reasonable estimate, it should be clearly indicated as such) in the recent years or as of the date of publication of the annual report:

Losses and total amount of penalties related to environmental pollution in the recent years or as of the date of publication of the annual report: None
Future responsive actions and total expenditures: Not applicable

(II) The Company's response to EU Restriction of Hazardous Substances (RoHS) Directive:

The Company's main raw materials: The raw materials used include plastic pellets, ABS raw materials and various spray coatings, which all comply with EU RoHS Directive that took effect in July 2006. The hazardous materials specified in the directive are prohibited during production, while relevant information are notified to various departments, so as to ensure that the Company's products meet EU directives or customer needs.

V. Labor Relations

(I) List the Company's various employee benefits, continuing education, training, retirement systems and the implementation status, as well as labor-management agreements and protection of various employee interests.

Employee benefits

A. On December 15, 1994, the Company has established an Employee Welfare Committee to allocate funds on a monthly basis. The Company also periodically organizes employee welfare activities, with detailed employee welfare planning and budgets every year.
B. Distribution of year-end bonuses and remuneration.
C. Wedding and funeral gifts.
D. Labor insurance, national health insurance and group insurance.
E. Domestic tourism activities and international tourism subsidies.
F. New Year gifts.
G. Birthday gifts and dinner.
H. Year-end festival and lottery.
I. Implement maternity leave, paternity leave, and parental leave in accordance with the Labor Standards Act.
J. Staff and children scholarships.
K. Employee health check-up.
L. On-site consultation services for physicians and nurses.

Continuing Education and Training System

A. Pre-employment training: Enable employees to understand the Company's organizational structure, management policy, company spirit and general management principles.
B. Internal training: The Company organizes employee education and training according to its annual

plan, with relevant training courses such as skills, knowledge, management, social etiquette and first aid.

C. External training: The Company provides opportunities and training funds for employees, so that each employee can make contributions by applying what they have learned, improve work quality, work skills, and the Company's overall profitability.

Retirement system: Allocation of pensions for retired employees in accordance with the Labor Standards Act or Labor Pension Act.

① According to the Labor Standards Act, the retirement of employees is classified into: voluntary retirement, age-mandated retirement and compulsory retirement. The retirement conditions are described as follows:

A. Voluntary retirement: Employees who meet one of the following clauses shall be permitted for voluntary retirement.

① Having been employed for fifteen (15) years and are aged at least fifty five (55).
② Having been employed for at least twenty-five (25) years.
③ Having been employed for ten (10) years and are aged at least sixty (60).

B. Age-mandated retirement:

① The employees who have reached sixty-five (65) years of age shall be subject to age-mandated retirement.
② Employee who are subject to age-mandated retirement but are in good health may be retained by the Company when necessary.

C. Compulsory retirement: Employees who meet one of the following clauses shall be subject to compulsorily retirement:

① Mentally incapacitated.
② Physically disabled and incapable of delivering service.

For retirement in accordance with the Labor Pension Act, the retired employee shall apply to the Bureau of Labor Insurance according to the year of service rendered.

Standards for pension payment:

A. Employees who retire according the Labor Standards Act:

① The Company shall appropriate labor pension reserve funds of 2% of the total monthly wages of its employees and deposit such amount in the Bank of Taiwan (the former special account was in the Central Trust of China). In addition, the Business Entity Supervisory Committee of Labor Retirement Reserve was established, and a total of NT$597 thousand was appropriated in 2025.

Two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base is given for each full year of service rendered. The total number of bases shall be no more than 45. The length of service is calculated as half year when it is less than six months and as one year when it is more than six months.

② The retirement pension base shall be one month's average wage of the worker at the time when his or her retirement is approved.
③ For employees who choose to be covered by the pension system of the Labor Standards Act, their seniority prior to their application to the Act shall be reserved, and a retirement payment shall be paid in accordance with the above standards upon the employee's retirement.

B. Employees who retire according the Labor Pension Act:

① The Company shall appropriate labor pension reserve funds of 6% of the total monthly wages of its employees and deposit such amount in the portable personnel account of the Bureau of Labor Insurance, and a total of NT$2,945 thousand was appropriated in 2025.
② According to the Labor Pension Act and payment standards, a worker may apply to the Bureau of Labor Insurance for voluntary retirement when the worker attains the age of sixty.

Employee welfare, employee education and training, retirement system and implementation: Successful.

Implementation of employee benefit measures in 2025:

Employee welfare system	Number of applicants
Wedding and funeral	18
Festival and Birthday Gifts	348
Children's Scholarship	22
Children's education grant	0

Type of leave	Number of applicants	Reinstatement rate
Menstrual leave	3	100%
Maternity leave	0	0%
Maternity leave for abortions and miscarriages	0	0%
Paternity leave	0	0%
Pre-maternity leave	0	0%
Parental leave	0	0%
Leave of absence without pay	0	0%

Implementation of employee education and training in 2025:

In the current year, there were a total of 349 training courses, with 698 hours of training, while the total number of training hours was 5,191 hours.

Implementation of employee retirement system in 2025:

3 employees retired in 2025.

Labor-management negotiation:

A. Labor-management meetings are held at least every quarter to establish a labor-management consultation system.
B. Establish an employee complaints system to strengthen labor relations and gender equality.
C. The Company has formulated work rules and personnel management rules, clearly stipulating the rights, obligations and matters related to labor-management, so that employees can fully understand and protect their own rights and interests.
D. Conduct employee health check-ups on an annual basis in accordance with the Labor Safety and Health Law.

Protection of various employee interests: Successful.

(II) Losses arising as a result of employment disputes in the last year up until the publication date of annual report. Please quantify the estimated losses and state any response actions, and state reasons if losses cannot be reasonably estimated: None.

VI. Cybersecurity management

(I) Describe the cybersecurity risk management framework, cybersecurity policies, concrete management programs, and investments in resources for cybersecurity management.

Corporate cybersecurity management team

The Company’s 「Group General Operations Management Department」 has appointed 4 personnel in the Administrative Division and its Information Center to be responsible for the overall formulation, implementation, risk management and compliance review of information security policies, and annually report the effectiveness of information security management to the board of directors.

Cybersecurity Policy
Ensure continuous operations of the Company's business activities and the Company's IT services.
Ensure the confidentiality, integrity and usability of the Company's information assets as well as the privacy of personnel data.
Establish an IT business sustainability plan, and conduct IT business activities that comply with relevant laws or regulations.
Specific management plan
Establish an inter-departmental information security management team to ensure the effectiveness of the Company's information security management and operations.
Establish a list of information assets, and conduct information security risk assessment to implement various risk management measures.
New employees must participate in information security education and training courses to strengthen the awareness on information security protection, while the Company also advocate on information security on a regular basis.
All of the Company's employees, outsourced manufacturers and third-party suppliers and visitors shall be responsible for protecting the Company's information assets when using it to provide IT services or related IT businesses, so as to prevent unauthorized access, modification, destruction or improper disclosure.
Establish a safe and reliable IT system to achieve corporate sustainability. The Company's main IT

systems or devices shall be equipped with appropriate backup or monitoring mechanisms, while the Company conducts regular drills to maintain its usability.

The employees' PCs shall install anti-virus software, checking the update of virus definition on a regular basis, and prohibiting the use of unauthorized software.
The employees shall be responsible for user account authentication and password management, and change passwords regularly.
Design appropriate response and notification procedures for information security incidents to ensure a timely response and avoid further damage.
All employees of the Company shall abide by the information security laws and regulations and company policies, while the managers shall supervise the implementation of information security system, and strengthen employees' awareness on information security and legal compliance.
Implementation status
On November 13, 2025, the implementation status was reported to the board of directors and are described as follows:
Education and training:

In June and October 2025, the Company organized 2 sessions of information security education and training for managers and employees. The course content includes explanations to managers and employees on not opening email attachments indiscriminately and basic information security concepts, as well as precautions for daily work and reminders after class.

Information security and timely information sharing:

On February 27 and June 2, 2025, the Information Center has sent out latest messages on information security, such as $\lceil$ Be wary of social engineering tactics used to lure victims, and carefully examine the email address format and actual URL of public sector emails to determine if they are fraudulent $\rfloor$ .

Implementation of the annual audit plan:

The information security safety inspection has been incorporated in the audit plan, and has been implemented for the current year, with no major deficiencies.

Joined the Taiwan CERT/CSIRT Alliance in March 2022 in order to collect information related to external threats, including TWCERT, on a regular basis, so as to keep in line with the latest news on information security, and strengthen the ability to protect system information.

(II) List any losses suffered by the Bank in the most recent fiscal year and up to the date of publication of the annual report due to significant cybersecurity incidents, the possible impacts therefrom, and countermeasures. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided.

The IT system architecture has off-site host backup mechanism with high usability based on its risk level, in order to ensure smooth operations in each unit. The Company also store backup media at an off-site media storage, and strengthen various simulation tests and emergency response drills in the computer room to ensure normal operations of the IT system and data security, and reduce the risk of system interruption caused by sudden natural disasters and human negligence, so as to meet the target time for system recovery and ensure data integrity.

In 2025, except for distributed denial-of-service attack, we have conducted appropriate countermeasures in a timely manner (e.g.: network segmentation, package cleaning; virus detection, and antivirus protection), and there were no major information security incidents that affected the Company's operations.

The cybersecurity insurance is still a new type of insurance, involving information security testing agencies, claims agencies, conditions for raising no claim, and other related matters. Therefore, we are currently considering whether or not to buy the cybersecurity insurance. Subsequently, our goal is to formulate comprehensive information security norms, and conduct regular assessments on cybersecurity, and thus we will establish a joint information security defense mechanism, with better employee education and training plans and advocacy.

VI. Important contracts

Contract type	The party	Commencement dates Expiration dates	Main businesses	Restrictive clauses
Equipment contracts	Coxon Industry (Changshu) Co., Ltd	2025.01.01~2025.12.31	Purchase of equipment and renovation	None

Five. A Review and Analysis of the Company's Financial Position and Financial Performance, and a Listing of Risks

I. Financial Position

(I) Analysis of significant changes in assets, liabilities and in shareholders' equity and possible impact in the last two years (consolidated):

Units: NT\$thousand

Year Item	2024	2025	Difference
			Amount	%
Total current assets	2,375,702	2,096,479	(279,223)	(11.75)
Total non-current assets	1,038,353	769,175	(269,178)	(25.92)
Total assets	3,414,055	2,865,654	(548,401)	(16.06)
Total current liabilities	1,277,723	969,575	(308,148)	(24.12)
Total non-current liabilities	307,823	148,333	(159,490)	(51.81)
Total liabilities	1,585,546	1,117,908	(467,638)	(29.49)
Total owner's equity	1,828,509	1,747,746	(80,763)	(4.42)
Non-controlling interests	0	0	0	0
Total equity	1,828,509	1,747,746	(80,763)	(4.42)
Changes over 20% of the previous period, and the change amounted to NT$10 million are described as follows:
The decrease in non-current assets was mainly due to a reduction in leased properties in 2025, resulting in a corresponding decrease in right-of-use assets.
The decrease in current liabilities was mainly due to a reduction in operating scale in the fourth quarter of 2025, resulting in a corresponding decrease in purchases.
The decrease in non-current liabilities was mainly due to a decrease in lease liabilities due to lease expiration in 2025.
The decrease in liabilities was mainly due to a decrease in non-current lease liabilities.
The above changes have no significant impact on the Company.

(II) Future response plan: Not applicable.

II. Financial Performance

(I) Comparative analysis of operating results for the last two years (consolidated):

Units: NT\$thousand

Item\Year	2024	2025	Amount	%
Net operating revenue	3,136,753	2,784,296	(352,457)	(11.24)
Operating costs	2,839,924	2,498,755	(341,169)	(12.01)
Operating profits	296,829	285,541	(11,288)	(3.80)
Operating expenses	360,410	365,769	5,359	1.49
Operating income	(63,581)	(80,228)	(16,647)	(26.18)
Total non-operating income and expenses	85,757	82,026	(3,731)	(4.35)
Profit before tax	22,176	1,798	(20,378)	(91.89)
Income tax expenses	(785)	412	1,197	152.48
Net profit	21,391	2,210	(19,181)	(89.67)
Changes over 20% of the previous period, and the change amounted to NT$10 million are described as follows:
1. The decrease in operating profit was mainly due to a decrease in gross profit and an increase in operating expenses in 2025.
2. The decrease in pre-tax net profit was mainly due to a decrease in scale and an increase in losses in the core business in 2025.
3. The decrease in after-tax net profit was mainly due to an increase in scale and an increase in losses in the core business in 2025.
The above changes have no significant impact on the Company.

(II) Sales volume forecast for the coming year and the basis: The Company's sales volume forecast for the coming year is 322,655 thousand pcs, and its 2026 sales volume forecast is determined by changes in market conditions, and orders received by the sales department.
(III) The expected sale amount and its basis, and the Company's future financial performance and the plan for any possible impact: No significant impact.

III. Cash flow analysis: The annual report shall describe and analyze any cash flow changes during the most recent fiscal year, describe corrective measures to be taken in response to illiquidity, and provide a liquidity analysis for the coming year.

(I) Analysis of changes in cash flow over the next year (consolidated):

Item\Year	2024	2025	% change
Cash flow ratio (%)	11.05	15.36	39.00
Cash Flow Adequacy Ratio (%)	86.95	102.46	17.84
Cash Flow Reinvestment Ratio (%)	1.28	1.55	21.09

Analysis of percentage changes: (not applicable for changes no more than 20%)

The increase in the cash flow ratio is due to the decrease in current liabilities in 2025.
The increase in the cash reinvestment ratio is mainly due to the decrease in gross fixed assets in 2025.
(II) Insufficient capital liquidity improvement plan: Not applicable.

(III) Cash flow forecast analysis for the coming year (consolidated):

Units: NT\$thousand

Beginning Cash Balance (1)	Cash flow from operating activities (2)	Cash outflow (3)	Residual cash (cash shortage) (1)+(2)-(3)	Cash shortage contingency plan
				Investment plan	Financing plan
547,486	175,365	106,749	616,102	-	-

Analysis of changes in cash flow over the next year:

(1) Cash flow from operating activities:

The Company expects that its operating activities, including inventory and accounts receivable, will remain stable in 2026, and thus we forecast net cash inflow from the Company's operating activities.

(2) Cash outflow over the next year:

Mainly investment and financing activities. The estimated cash outflows are as follows:

Investment activities

The Company plans to purchase new equipment and dispose of some old equipment.

Financing activities

The Company plans to Cash Distributions from Capital Surplus.

Cash shortage contingency plan and liquidity analysis: Not applicable.

IV. Major capital expenditures during the most recent fiscal year: The Company has not major capital expenditure plans during the most recent fiscal year.

V. Investment Policy for the Most Recent Fiscal Year, the Main Reasons for the Profits or Losses, Improvement Plans, and Investment Plans for the Coming Year:

(I) The Company's investment policy:

The Company's decision-makers takes into account factors such as the Company's business needs or future growth, and proposes investment plans which assess the type of organizational structure, investment purpose, business location, market conditions, business development, possible joint venture partnership, shareholding, reference price and financial status in detail, and an investment proposal is prepared for decision-makers as basis for making investment decisions. In addition, the Company also keeps track of the operating status of investees, and analyzes the investment achievements for follow-up and help post-investment management of the decision-making authorities.

(II) The main reasons for the profits or losses, improvement plans:

Units: NT\$thousand

Investments	Investment Amount	Reason for profit or loss		Improvement plan
		Investment gains recognized in	Description
None

(III) Investment plans for the coming year:

The Company has no new investment plans for the coming year.

VI. Risk Management:

(I) The effect upon the Company's profits (losses) of interest and exchange rate fluctuations and changes in the inflation rate, and response measures to be taken in the future:

Interest rate

a. The impact of changes in interest rate on the Company's revenue and profits

The net interest income and expense as a percentage of the Company's revenue and net profit after tax in 2025 was approximately 0.20 and 250.86%, respectively. The slightly higher percentage of net interest income and expense as a percentage of net profit after tax was due to the lower net profit after tax in 2025. The Company currently has no loans from financial institutions. All interest expenses are due to the change in the treatment of leases since 2019 in response to the application of IFRS 16, resulting in the recognition of higher interest costs. However, the change in interest rates should not have a significant impact on the Company's revenue and profit.

b. Contingency measures:

Apart from major capitalization expenditures and long-term investments which shall be supported by medium and long-term funding, the Company focuses on short-term operating working capital for funding due to the Company's relatively low performance. Meanwhile, the Company continues negotiate on preferential loans. In 2025, we expect a balance of payments, The Company currently has no loans of any banks and financial organizations, and the changes in interest rates will not have a significant impact on the Company.

Change in exchange rate:

a. The impact of changes in exchange rate on the Group's revenue and profits (consolidated)

Units: NT\$thousand; %

Year Item	2023	2024	2025
Foreign exchange gains (losses)	512	17,272	(20,817)
Net operating revenue	2,637,304	3,136,753	2,784,296
Foreign exchange gains (losses) / net operating revenue	0.02%	0.55%	0.75%
Operating income	(136,662)	(63,581)	(80,228)
Foreign exchange gains (losses) / operating income	(0.37%)	(27.17%)	25.95%

The Group's products are mainly exported and denominated in US dollars. Therefore, the revenue and profit will be affected by foreign exchange fluctuations.

According to the analysis, the highest percentage of foreign exchange gains and losses in the last three years accounted for 0.75% of total revenue, and (27.17%) of total operating profit, which were not significant.

b. Contingency measures

(1) For product pricing, the Company's business department takes into account the impact of exchange rate fluctuations, and adjusted sales prices in consideration of exchange rate changes to appropriately reflect exchange rate fluctuations and ensure the Company's product profitability.

(2) The finance department pays close attention to international finance, keeping track of the latest changes in foreign exchange rate, and requests the bank to provide professional consulting services to keep in line with the currency trend, with appropriate hedging strategies based on the actual capital requirements in order to reduce exchange rate risks.

(3) In the future, the Company's main strategy for exchange rate risk management focuses on natural currency hedging, with timely adjustments on the positions of foreign currency assets and liabilities to reduce the risk of foreign exchange rate fluctuations.

Inflation: The Company has not been significantly influenced by inflation.

(II) The Company's policy regarding high risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses generated thereby; and response measures to be taken in the future:

For the Company's business strategy, we adhere to the conservatism principle, and has not engaged in high-risk, high-leverage investments and transactions in recent years, while the procedures for the loaning of funds to others, endorsements/guarantees, and derivatives transactions were formulated and implemented in accordance with relevant regulations.

(III) Future R&D planning and estimated investment of research costs:

Corresponding to future development, the Company’s R&D projects for 2026 mainly include the development of paint-free plastic materials and sputtering process R&D. The Company plans to invest NT$3,100 thousand in R&D expenses in 2026, with the hope to continuously strengthen the Company's competitiveness.

(IV) Effect on the Company's financial operations of important policies adopted and changes in the legal environment at home and abroad, and measures to be taken in response:

In addition to the daily operations which are handled in accordance with domestic and international laws and regulations, the Company also keep track of the trends of domestic and foreign policies, and changes in laws and regulations, collecting relevant information as reference to help the management’s decision-making and adjustment of relevant business strategies. Until now, there were no situation where the Company's financial operations has been affected due to major changes in domestic and foreign policies and laws.

(V) Effect on the Company's financial operations (Include Cybersecurity management risk) of developments in science and technology as well as industrial change, and measures to be taken in response:

Effect on the Company's financial operations

The Company has always kept in line with technological changes and evolutions in the industry, continuously improving its product quality and manufacturing processes, keeping track of industry trends and market information, with a stable financial management strategy to maintain its market competitiveness. In the future, the Company will continue to pay attention to technological changes in the industry, taking into account its influence on company operations, with corresponding adjustment to strengthen business development and its financial status. Therefore, the technological change and industrial transformation have not exerted significant influence on the Company.

Cybersecurity management

Ensure continuous operations of the Company's business activities and the Company’s IT services of developments in science and technology as well as industrial change in relation to implementing personal Data Protection Act, and measures to be taken in response:

The Company has introduced firewall, Ensure the confidentiality, integrity and usability of the Company’s information assets as well as the privacy of personnel data.
The IT system architecture has off-site host backup mechanism with high usability based on its risk level, in order to ensure smooth operations in each unit. The Company also store backup media at an off-site media storage, and strengthen various simulation tests and emergency response drills in the computer room to ensure normal operations of the IT system and data security, and reduce the risk of system interruption caused by sudden natural disasters and human negligence, so as to meet the target time for system recovery and ensure data integrity.
The employees’ PCs shall install anti-virus software, check the update of virus definition on a regular basis, and prohibit the use of unauthorized software.
The employees shall be responsible for user account authentication and password management, and change passwords regularly.
Design appropriate response and notification procedures for information security incidents to ensure a timely response and avoid further damage.

(VI) Effect on the Company's crisis management of changes in the Company's corporate image, and measures to be taken in response:

Since its establishment, the Company has always uphold the concept of integrity and professionalism, actively strengthening internal management, management quality and efficiency, and attached great importance to corporate image, risk control, and legal compliance. There has been no changes in the Company’s corporate image. In the future, the Company aims to fulfill its corporate

86 -

social responsibilities while optimizing shareholders' interests.

(VII) Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken:

Not applicable, as the Company currently has no plans for mergers and acquisition.

(VIII) Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken

Not applicable, as the Company currently has no expansion plans.

(IX) Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken:

In 2025, the top ten suppliers accounted for 51.76% of the total purchases, while the largest supplier accounted for 24.72%; the Company's sources of procurement are scattered, and thus there should be no risk of centralized purchasing.

The Company's customer base is scattered. In 2025, the top ten customers accounted for 60.97% of the Company's net operating revenue, and the largest customer accounted for 12.32%. Therefore, there should be no risk of centralized sales operations.

(X) Effect upon and risk to the Company in the event a major quantity of shares belonging to a director, supervisor, or shareholder holding greater than a 10 percent stake in the Company has been transferred or has otherwise changed hands, and mitigation measures being or to be taken:

Not applicable, since there were no directors or major shareholders holding greater than a 10 percent stake in the Company has been transferred or has otherwise changed hands in the most recent fiscal year up to the date of publication of the annual report.

(XI) Effect upon and risk to company associated with any change in governance personnel or top management, and mitigation measures being or to be taken: Not applicable, since there were no changes in governance personnel or top management as of the date of publication of the annual report

(XII) Litigious and non litigious matters:

In recent years as of the date of report publication, any litigation or ongoing litigation, non litigation or administrative disputes in which the results may have significant influence on the shareholders' equity or securities price:

The subsidiary, Sinxon Plastic (Dongguan) Co., Ltd., has not yet received part of the payment for equipment leased to manufacturer Gansheng in Dongguan City, and litigation proceedings have commenced.

In recent years as of the date of report publication, the directors, general managers and substantial principals of the Company, the majority shareholders and affiliated companies with a shareholding ratio of more than 10% have been determined or are included in any litigation or ongoing litigation, non litigation or administrative disputes in which the results may have significant influence on the shareholders' equity or securities price: None.

(XIII) Other important risks, and mitigation measures being or to be taken: None.

VII. Other Important Matters: None

Six. Special Disclosure

I. Information related to the Company's affiliates (as of March 31, 2026)

(I) Consolidated Business Report of affiliate companies;

The Company and its subsidiaries that are required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we have not prepared a separate set of consolidated financial statements of affiliates.

Organizational Chart of affiliate companies: The Company has effective control over the investees are referred to as affiliate companies as stipulated in Articles 369-1 and 369-3 of the Company Act.

Basic information of affiliated companies (as of March 31, 2026)

Units: US$; HK$; NT$

Company Name	Date of Establishment	Address	Paid-in Capital	Main Businesses and Products
COXON PRECISE INDUSTRIAL CO.,LTD	1979/06/14	No.48, Ln. 1274, Zhongzheng Rd., Zhongli Dist., Taoyuan City 320, Taiwan	NTD1,216,622,390	Manufacturing and sale of nonmetal molding, precision plastic injection parts, related semi-finished goods and components
Cheng Yee Enterprise Co. Ltd. (Samoa)	2005/04/26	Portcullis TrustNet Chambers,P.O.Box 1225,Apia Samoa	USD9,400,000	Global investing activities
Coxon Industry Ltd. (Samoa)	2004/06/18	Portcullis TrustNet Chambers,P.O.Box 1225,Apia Samoa	USD49,731,053.98	Global investing activities
Sinxon Plastic (Dong Guan) Ltd.	2001/07/13	No. 347, Chang An Bubugao Road, Chang An Town, Dongguan City	HKD819,463,306	Manufacturing and sale of nonmetal molding, mobile communication system and mobile phone parts; packaging and printing; plant leasing (real estate agency services); property management; and machinery and equipment leasing
Hang Yuan Enterprise Ltd. (Samoa)	2005/04/26	Portcullis TrustNet Chambers,P.O.Box 1225,Apia Samoa	USD19,000,000	Global investing activities
Changshu Huaxon Industry Co., Ltd.	2007/11/19	NO.58, Jiulong Road, High And New Technology Development Zone, ChangShu City	USD31,000,000	Lease
Coxon Industry (Changshu) Co., Ltd.	2003/12/24	NO.58, Jiulong Road, High And New Technology Development Zone, ChangShu City, SuZhou City, JiangSu, China	USD20,000,000	Manufacturing and sale of nonmetal molding, precision plastic injection parts, related semi-finished goods and components

Shareholders presumed to have control and subordinate relationship with the same information: None.
The overall relationship between business enterprises covered by the industry and division of labor:

(1) The overall relationship between business enterprises covered by the industry

As customers have shifted investments to China, the Company also shifted production operations to overseas, and invests in various subsidiaries in China through a third country (Samoa). The subsidiaries in China mainly focus on the manufacturing of molds and plastic parts, and plastic surface treatment, while the main business of overseas holding companies focus on holding a controlling interest and international trade.

(2) Where connections exist among the businesses operated by individual affiliates, a description of the mutual dealings and division of work among such affiliates should be provided:

The Company's affiliated companies specializes in plastic components, and give priority to being close to the customers when providing services, and support each other by use of capacity allocation when necessary.

Information of the directors, supervisors, and general manager of each affiliate (as of December 31, 2025)
Units: Shares; %

Company Name	Title	Name or representative	Shareholding (Note 1)
			Shares	Percentage of Ownership (%)
COXON PRECISE INDUSTRIAL CO.,LTD	Chairman	HONG, HUAN-CHING	3,345,792	2.75
	Vice Chairman	WU,WEN-HSING	3,127,047	2.57
	General Manager	CHANG,WEN-TUNG	4,018,147	3.30
	Director	HSIEH,JEN-CHIEN	0	0.00
	Director	HSU,CHIA-HUNG	144,389	0.12
	Director	LU,KUO-LIANG	300,000	0.25
	Independent Director	LIN,CHIH-CHEN	15,740	0.01
	Independent Director	Fang,Hsueh-Chen	29,000	0.02
	Independent Director	Chang,Shu-Chuan	0	0.00
Cheng Yee Enterprise Co. Ltd. (Samoa)	Director	Hong, Huan-Ching, Chang, Wen-Tung and Wu, Wen-Hsiang	9,400,000	100
Coxon Industry Ltd. (Samoa)	Director	Hong, Huan-Ching, Chang, Wen-Tung and Wu, Wen-Hsiang	49,731,054	100
Sinxon Plastic (Dong Guan) Ltd.	Director	Hung, Huan-Ching, Wu, Wen-Hsiang and Hsieh,Jen-Chien	-	100
	Supervisor	Hsu, Chia-Hung
Hang Yuan Enterprise Ltd. (Samoa)	Director	Hong, Huan-Ching, Chang, Wen-Tung and Wu, Wen-Hsiang	19,000,000	100
Changshu Huaxon Industry Co., Ltd.	Director	Hong, Huan-Ching, Chang, Wen-Tung and Liu,Chin-Man	-	100
	Supervisor	Wu, Wen-Hsiang
Coxon Industry (Changshu) Co., Ltd.	Director	Hong, Huan-Ching, Chang, Wen-Tung and Hsu, Chia-Hung	-	100
	Supervisor	Wu, Wen-Hsiang

Note 1: No shares if it is a limited company.

The overview of the operations of the affiliates (as of December 31, 2025)
Units: NT$thousand (except earnings per share which is denominated in the original currency)

Company Name	Paid-in capital (original currency)	Paid-in Capital	Total assets	Total liabilities	Net value	Operating revenue	Operating income	Net income (after tax)	Earnings/ loss per share (NT$) (after tax)
COXON PRECISE INDUSTRIAL CO.,LTD	1,216,622	1,216,622	2,087,302	339,556	1,747,746	872,743	31,885	2,210	0.02
Coxon Industry Ltd.(Samoa)	USD49,731,054	1,630,397	429,681	67,967	361,714	67,948	(18,502)	(96,531)	(0.06)
Cheng Yee Enterprise Co. Ltd.(Samoa)	USD9,400,000	468,836	1,043,365	-	1,043,365	-	(50)	68,787	0.23
Sinxon Plastic (Dong Guan) Ltd.	HKD819,463,306	3,330,854	943,063	557,768	385,296	1,009,011	(182,235)	(99,499)	N/A(Note 2)
Changshu Huaxon Industry Co., Ltd.	USD31,000,000	1,002,998	598,861	2,292	596,569	-	(49,505)	(14,654)	N/A(Note 2)
Hang Yuan Enterprise Ltd.(Samoa)	USD19,000,000	618,105	1,162,312	119,875	1,042,437	369,370	20,810	68,630	0.12
Coxon Industry (Changshu) Co., Ltd.	USD20,000,000	605,500	919,820	540,202	379,618	1,260,331	76,702	59,644	N/A(Note2)

Note 1: If the affiliated company is a foreign company, the relevant figures should be converted into NT Dollars based on the spot exchange rate at the reporting date.
December 31, 2025 Annual Average
US Dollar 31.430 31.1798
RMB 4.496 4.3179
Note 2: No shares as it is a limited company.

II. Transaction About the Company's Private Placement of Securities During the Most Recent Fiscal Year Up to the Date of Publication of the Annual Report: None.
III. Other Matters that Require Additional Description: None.

VII. Whether Situations Listed in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act, which Might Materially Affect Shareholders' Equity or the Price of the Company's Securities, has Occurred During the Most Recent Fiscal Year or During the Current Fiscal Year Up to the Date of Publication of the Annual Report: None.

Coxon Precise Industrial Co., Ltd.

Chairman: Hong, Huan-Ching

General Manager: Chang, Wen-Tung

AI assistant

Coxon Annual Report 2025

52354_rns_2026-05-13_05946d36-bcee-46fb-bf9a-1c2122f2abae.pdf

COXON

COXON PRECISE INDUSTRIAL CO., LTD

2025 Annual Report

Table of Contents

Two.Corporate Governance Report

3.2 Board Diversity and Board Independence:

II. Remuneration Paid During the Most Recent Fiscal Year to Directors, General Manager, and Vice General Manager

(2) The responsibilities of members of the Compensation committee

(3) Operation status of the Compensation committee

Climate-Related Information of TWSE/TPEx Listed Company

Implementation of ethical management

Total Equity Stake

Three. Capital Overview

Five. A Review and Analysis of the Company's Financial Position and Financial Performance, and a Listing of Risks

I. Financial Position

II. Financial Performance

Six. Special Disclosure

Coxon Precise Industrial Co., Ltd.

AI assistant

Coxon — Annual Report 2025

52354_rns_2026-05-13_05946d36-bcee-46fb-bf9a-1c2122f2abae.pdf

COXON

COXON PRECISE INDUSTRIAL CO., LTD

2025 Annual Report

Table of Contents

Two.Corporate Governance Report

3.2 Board Diversity and Board Independence:

II. Remuneration Paid During the Most Recent Fiscal Year to Directors, General Manager, and Vice General Manager

(2) The responsibilities of members of the Compensation committee

(3) Operation status of the Compensation committee

Climate-Related Information of TWSE/TPEx Listed Company

Implementation of ethical management

Total Equity Stake

Three. Capital Overview

Five. A Review and Analysis of the Company's Financial Position and Financial Performance, and a Listing of Risks

I. Financial Position

II. Financial Performance

Six. Special Disclosure

Coxon Precise Industrial Co., Ltd.

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Coxon Annual Report 2025