Stock Code:2415

CX tech

CX Technology Corporation

2025

Annual Report

Date of publication: May 2026

Inquiry website of this annual report:

http://mops.twse.com.tw/

I. Spokesperson

Name: Kevin Chen

Title: Finance Vice President

Phone: (02)23898686

E-mail Address:[email protected]

II. Deputy Spokesperson

Name: Elin Lin

Title: Finance Director

Phone: (02)23898686

E-mail Address:[email protected]

III. Address and phone number of head office and factory:

company address: 20F., No. 179, Liaoning St., Zhongshan Dist., Taipei City

Phone: (02)23898686 Fax: (02)23892626

CXVN: address: Lot CT, Lot T, Area C, Tan Thuan Export Processing Zone, Tan Thuan Dong Ward, District 7, Ho Chi Minh City

Phone: +84-28-3770-1025

CXSH address: No. 245, Xupan Road, Xuxing Town, Jiading District, Shanghai

Phone: +86-21-39533308

MRHD address: Factory B11, B12, B13, Block B3, the west of Phu Thai Industrial Park, Phu Thai District, Kim Thanh Town, Hai Duong Province Hai Duong, Vietnam

Phone: +84-220-356-1600

IV. Stock Transfer Agent

Name: Fubon Securities Co. Ltd., Stock Register Agency Department

address: 2F., No. 17, Xuchang St., Zhongzheng District, Taipei.

Phone: (02)2361-1300

website: www.fbs.com.tw

V. Financial Report Auditors

Auditors: Kathy Huang and Hugh C. Chang

Accounting Firm: Deloitte & Touche Taiwan

Address: 20F, Taipei Nan Shan Plaza, No. 100, Songren Rd., Xinyi Dist., Taipei,

Phone: 886-2-2725-9988

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

VI. The name of the trading venue where overseas securities are listed and

traded and the method for inquiring information on such overseas securities:

Not applicable

VII. Company website: http://www.cxtechnology.com

Table of Contents

ONE. Letter to Shareholders...1
TWO. Organizational Strategy...7
1. Directors (including independent directors)...7
2. Management Team...13
3. Human Resources...14
4. Information and communication security management:...16
Three. Corporate Governance...19
1. Term of Board of Directors’ Meeting Operation Status:...19
2. Operation information of the Audit Committee:...21
3. Operation Status of Remuneration Committee:...24
4. Corporate Governance Status:...25
5. Deviation of the Company’s actual promotion of sustainable development execution status from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and cause thereof...32
6. Climate-related information of TWSE/TPEx listed company:...37
7. Ethical Corporate Management Practices, and Discrepancies from Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and Reasons:...39
8. Code of Corporate Governance and related regulations: None...41
9. Other important information: None...41
10. Internal Control System Implementation Status...42
11. Penalties imposed against the Company and its internal personnel for regulatory violation, or penalties imposed by the Company against its employees for violation of internal control policy in the most recent year up till the publication date of this annual report; if the penalty result may have material impact on the shareholders’ equity or stock price, it is necessary to describe the penalty content, areas of weakness and improvement status: None...43
12. Major resolutions made by the shareholders’ meetings and the board meetings during the most recent financial year and up to the printing date of the annual report...43
13. Documented opinions or declarations made by directors or supervisors against board resolutions in the most recent year and up to the printing date of the annual report: None...45
14. Information on Independent Auditor's Fee:...45
15. Transfer or pledge of shares owned by directors, supervisors, managerial officers, shareholders 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...46
16. Information on relationships among shareholders of top ten highest shareholding percentages:...47
17. Consolidated shareholding ratio...47
FOUR. Financial structure...48
1. Capital and Shares...48
FIVE. Overview of Operations...53
1. Business Content...53
2. Market Profile and Production and Sales Overview...71
3. Important Contracts: None...78
SIX. Risk management...80
1. Business risk information...80

Operational risk information ... 80
Financial Risk Information ... 82
Other significant risks and countermeasures: None ... 83

SEVEN. Financial Statements ... 84
1. Review of financial position and financial performance ... 84
2. Impact of significant capital expenditures in the most recent year on the financial operations of the Company: None ... 85
3. Recent year's transfer of investments: No recent year's transfer of investments ... 85
4. Any financial distress experienced by the Company or its affiliates and impacts on the Company’s financial status in the most recent fiscal year and up to the printing date of annual report: None ... 85
5. Consolidated statements of operations of affiliated companies ... 86
6. Consolidated financial statements of affiliated enterprise ... 93
7. Report on affiliated enterprises: There is no need to prepare a report on affiliated enterprises ... 93
8. Private placement of securities: None ... 93
9. Holding or disposal of the Company's shares by subsidiaries: None ... 93
10. Other necessary supplementary information: None ... 93
11. For the most recent year and up to the printing date of the annual report, the occurrence of events having material impact on shareholders' rights and interests or securities prices according to Subparagraph 2 of Paragraph 3 of Article 36 of the Securities and Exchange Act ... 93
12. Audit Committee Review Report ... 93

For the convenience of readers and for information purpose only, the Annual report have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language shall prevail.

Letter to Shareholders

Founded in 1972, CX TECH has now been operating for over half a century. We sincerely thank our shareholders for their long-standing support and dedication. The world has changed dramatically in the past half century, but CX has always faced the challenges and worked hard in the market, with a steady attitude. From a small and medium-sized enterprise located in Zhongli, Taoyuan, the company has become the world's largest multinational publicly traded company specializing in the manufacture of high level speaker forging components. With the technical capability of developing conductive poles, conductive rings, conductive seats and aluminum cones, CX provides products for many of the world's top luxury cars and supercars with a global market share of 20%. In addition to the forging industry, CX TECH has extended its business to stamping, plastic injection components, and magnetic circuit assembly. Over the years, it has received many accolades and awards, such as the Ministry of Economic Affairs' 5th Outstanding Mid-Cap Business Award and the 14th National Brand Yushan Award – national grand prize in the outstanding enterprise category. In addition, CX TECH has consistently received excellent supplier awards, outstanding business partner awards, and letters of gratitude from suppliers and customers. For example, it received the Exceptional Service Award from Harman in 2025 and the Best Delivery Award from Harman in 2026.

CX TECH’s consolidated revenue for 2025 reached NT$2.36555 billion, a 3.40% increase compared to NT$2.28782 billion in 2024. Gross profit totaled NT$629.26 million, up 26% from NT$543.51 million in 2024. The net income attributable to the company in the 2025 consolidated financial statements was NT$163,010,000, with earnings per share of NT$1.81, return on assets of 3.69%, and return on equity of 5.18%. In March 2026, the Board of Directors passed a board resolution to distribute cash dividends of NT$0.48 per share and stock dividends of approximately NT$1.11 per share, for a total dividend of approximately NT$1.59 per share.

Merrimack River Precision Industrial Corporation, a 100% invested subsidiary of CX TECH, successfully obtained supplier certification from a well-known automotive speaker manufacturer for its newly established plant in Thailand in 2024. Product development was completed in 2025, and official mass production orders have been received in 2026. Merrimack River Precision Industrial Corporation has successfully continued to expand its car audio system business with famous European and American manufacturers. In 2025, it obtained official customer approval and certification and officially began the product and mold development phase. It is expected to enter the mass production phase in the second half of 2026. Merrimack River will focus on improving internal automation and project management capabilities to reduce costs and enhance its competitiveness in acquiring new customers and entering new markets.

For Phu Hung Securities, an investee company, the Vietnam stock market continued positive development in 2025, with the VN-Index closing at 1,784 points – a cumulative increase of 40.9%. Market liquidity also increased significantly, and the average daily trading value reached VND 29.351 trillion, nearly 40% higher year-on-year, reflecting a gradual recovery in investment confidence. Against this backdrop, Phu Hung Securities has focused on three key areas – technology, product, and customer experience – and continued to optimize its operating model. The Company is strengthening the application of artificial intelligence in operational processes to streamline and automate operating procedures, and improve operational efficiency and service quality. Meanwhile, the Company is actively engaged in research and development of new products and diversifying its services to meet the investment needs and risk profiles of different customer segments. During 2025, the Company continued to update the functions of the mobile app and independently developed and launched the trading platform X-Pro specially designed for professional

investors. In futures business, the Company has consistently maintained a position among the top ten in trading market share position. Thanks to the steady growth of its core business and warrant products, and with the proactive implementation of exchange rate risk management measures, Phu Hung Securities achieved a pre-tax profit of VND 11.67 billion (approximately US$4.48 million) in 2025, demonstrating good operating results.

CX TECH actively practices ESG (environmental, social, and corporate governance) principles and fulfills its sustainability commitment with concrete actions. The Company initiated its greenhouse gas inventory in 2022. In 2023, the inventory for the Taipei Head Office and the Vietnam plant was completed. In 2024, the scope was further expanded to include Phu Hung Securities and the Haiyang plant. Overall, the implementation timeline is significantly ahead of regulatory requirements (Head Office: 2026; subsidiaries: 2027). Since 2025, we have regularly completed a comprehensive inventory of the parent company and significant subsidiaries each year, and continue to deepen sustainability management.

Headquartered in Taoyuan, CX TECH has been motivated by its strong ties to the local community and commitment to social responsibility to partner with Taiwan World Vision since 2022. This long-term collaboration has involved annual donations totaling NT$5 million, and is now in its fifth year. To date, the partnership has helped 12- to 18-year-old disadvantaged youths and their siblings of the same age (junior and senior high school students) in Taoyuan City by providing learning resources to enhance their self-awareness and exploration. We are dedicated to building children’s confidence to overcome challenges and cultivating their vocational skills to support healthy development. To commemorate the spirit of former Chairman Lawrence Ting Shan-Li of CX, his foundation actively responded by cooperating with Taiwan World Vision from 2022 onward in support of the Yunlin immigrant family work program, with a commitment to regular donations for 10 years. CX TECH hopes to expand its philosophy of corporate social responsibility from within, harnessing collective efforts to bring greater warmth to the community.

For the achievements CX TECH has attained today, we would like to express our sincere gratitude to our shareholders for their long-term support, as well as to General Manager Hsiao and the Management Team and all colleagues for their hard work, which led the company to achieve more significant growth in 2025 than in previous years. Looking at the global situation, geopolitical and economic fluctuations continue to pose a significant challenge. The trade and tariff dispute that began in April 2025 has increased pressure on global supply chain restructuring. The ongoing Russia-Ukraine situation, coupled with the turmoil in the Middle East at the beginning of 2026, has further driven up energy and transportation costs. In addition, the full arrival of the global carbon pricing era and the structural economic slowdown in China have continued to affect demand in the global market.

In light of the turbulent international landscape, CX TECH will remain steadfast and strengthen its production capabilities by simplifying the production process, practicing lean cost management, and actively introducing automated process technology to enhance production efficiency. We will respond to global developments with flexible strategies, and strive to create maximum interests for customers, employees, and all shareholders. The following is a report on the Overview of Operations and future prospects for 2025.

2025 Business Report

(1) Business Plan Implementation Outcome

Unit: NTD thousand

Consolidation	2024	2025
Operating revenues	2,287,819	2,365,546
Growth rate	1.06%	3.40%
Gross operating profit	543,514	629,256
Gross profit margin	24%	26%

CX Technology Group’s consolidated revenue for 2025 was NT$2.365 billion, representing an increase of 3.04% from NT$2.287 billion in the previous year. Gross profit was NT$629 million, with a gross profit margin of 26%.

(2) Analysis of Financial Income and Expenditure and Profitability

Item		2024	2025
Return on assets		3.16%	3.69%
Return on shareholders' equity		3.51%	5.18%
Ratio to paid-in capital	Operating income	25.57%	38.46%
	Net income before tax	17.14%	35.28%
Net profit margin		4.49%	6.89%
Earnings per share (EPS) (NT$)		1.14	1.81

CX TECH’s net income was NT$163,010,000 in 2025, with a return on assets of 3.69% and a return on equity of 5.18%. Earnings per share in 2025 reached NT$1.81. In March 2026, the Board of Directors approved a cash dividend of NT$0.48 per share and a stock dividend of approximately NT$1.11 per share, for a total dividend distribution of around NT$1.59 per share.

(3) Research and Development Status

CX TECH continues to refine its process and product innovation, developing groove forging technology for magnetic poles and magnetic holders, and has introduced large plate transfer to integrate the punching and marking processes, thereby enhancing the production efficiency of magnetic rings. Meanwhile, the Company has introduced the mold heat treatment process to extend mold life and reduce process variation. Additionally, it has broken through traditional bonding limitations with the research and development of high-frequency sound-enhancing cover riveting technology, ensuring structural stability without detachment. This technology has been successfully applied to the aluminum tweeter diaphragm and lightweight aluminum forged products. In terms of plastic parts, the Company has also established insert molding technology for plastic and forged metal.

To strengthen quality control, CX TECH has introduced metallographic analysis. Through microscopic inspection of the metal microstructure, forging, and heat treatment state, the company evaluates grain size, inclusion distribution, and failure mode to ensure steel structure stability. Simultaneously, CX TECH strictly controls product dimensions and appearance quality to meet customer tolerance requirements.

In recent years, we have introduced several continuous forging machines, NC digital robotic arms, automatic feeding machines, fully automatic plating lines, and fully automatic electroplating lines to simplify human work, standardize products, and improve product quality and per capita output. In terms of information, we introduced the Product Lifecycle Management system to analyze Productsinformation and production data to achieve intelligent manufacturing and

operation management. Since 2024, the IPQC visual inspection system has been continuously implemented to quickly and automatically differentiate between good parts, defects that can be adjusted, and completely non-adjustable defective parts, ensuring scientific and accurate management.

In 2025, the technical team completed its upgrade, with a particular focus on education and training for electronic, mechanical, mechanism design, AOI engineer, and data analysis engineer personnel. A total of 130 optimization projects were implemented. Now, processes such as mold monitoring, dispensing visual full inspection, laser height full inspection, CNC tool life management, automatic plug removal mechanism implementation, feeding track manufacturing, camera application full inspection, and vibratory bowl feeder modification are all designed in-house and automatically monitored.

2026 Business Plan Summary

(1) Operation Policy

CX Technology has already held the leading position in the speaker parts market. In 2023, CX will continue to expand other product categories, such as automotive parts and hardware accessories, and enter into the plastic parts market through the MRP to satisfy customers' demand for combining metal and plastic injection, increase the added value of products, and expand the scale of business.

CX has also continued to optimize management and processes: ESG projects have been introduced, and the parent company, Vietnam plant, and Merrimack River Precision obtained ISO 14064-1 certification in 2025. The supplier evaluation standards have been updated to optimize supplier payment terms; laws and regulations and internal rules have been reviewed and adjusted to remain current; and quality control has continued.

CX has continuously developed new processes to reduce procedures and costs. For example, it has developed different types of steel and introduced hot forging and warm forging processes, fully utilizing metal plasticity to reduce deformation resistance and achieve complex part forming with smaller tonnage equipment. It continuously optimized the RFID inventory management system, increasing plant efficiency to reduce inventory turnover days and shortening delivery time to meet customer needs. In 2025, it introduced the IPQC visual inspection system into the product line to ensure quality requirements and collected the data obtained for database statistical analysis, accurately managing experience as scientific figures. In 2026, the Company will promote deep digital transformation, build a hyper-converged host to improve computing performance and system backup capability, and integrate RFID and ERP systems through AI-driven data analysis to achieve real-time precise control from warehousing to the production end.

(2) Production and Marketing Policy

Speaker applications cover transportation, consumer electronics, professional audio, and public spaces, extending into military and medical fields, with automotive speakers representing the largest market segment. With the development of automotive electrification and intelligence, vehicles have transformed from traditional transportation tools into a "third living space," driving rapid growth in in-car audio-visual entertainment demand. Particularly with the advancement of electric vehicles and autonomous driving technology, the time passengers spend using in-vehicle infotainment systems has increased significantly, further driving demand for high-fidelity sound, multichannel, and immersive audio systems. For example, the Cadillac Escalade IQ and Escalade-V are equipped with the top-of-the-line AKG Studio Reference audio system, featuring up to 38 speakers and supporting Dolby Atmos immersive audio. The Lincoln Aviator is equipped with the Revel Ultima 3D premium sound system, featuring 28 speakers; the Mercedes-Benz S-Class is equipped with the Burmester 4D surround sound system, featuring 31 speakers; and the BMW 7

Series is equipped with the Bowers & Wilkins Diamond Surround Sound System, featuring 36 speakers. As the number of in-vehicle speakers has increased from the traditional 6-8 to more than 30, CX, as a supplier, has benefited not only from a growing market share, but also from larger single orders.

Our speaker clients include own-brand manufacturers such as B&W, Dynaudio, Harman, Mark Levinson, and Pioneer, as well as speaker OEMs such as Estec, Faital, Foster, and PSS. In addition, many customers simultaneously produce and sell consumer speakers, such as B&C, B&W, Dynaudio, and JBL, a brand under Harman.

In order to expand into other fields and increase revenue, CX TECH has been actively developing products in forging, stamping, and plastic injection molding for other industries, such as automotive and motorcycle parts, industrial machinery starter motors, and hardware parts. In addition, the Company operates galvanizing, zinc-nickel plating, electrophoresis, and anodizing lines, offering customers specialized surface treatment services for a variety of metallic materials. CX TECH maintained a leading position with an automotive speaker market share of nearly 20% and continued to expand products in related industries.

(3) Future development strategies of the Company, the impact of the external competitive environment, the regulatory environment and the overall business environment

In addition to expanding the development of speaker-related products, such as stamping parts - iron cone frame, iron mesh, and semi-finished product assembly such as magnetic air circuit, we will also focus on the development of non-speaker products. In order to optimize the production line, CX and MRP will continue to improve the factory renovation and investment in equipment, upgrade the fire safety coefficient, set up a closed cooling water system to stabilize the quality and extend the life of equipment and mold water circuit, plan to add image inspection equipment and precision measuring equipment to reduce defects and improve mold accuracy, and introduce thermal insulation cloth for molding machines to reduce heat loss and achieve the goal of energy saving, carbon reduction and energy cost saving. The introduction of automation systems and database analysis continues to optimize advanced planning and scheduling, ensuring the accuracy of materials requirements and increasing the accuracy of financial forecasts. The WIP RFID integrated work reporting system has been implemented to reduce inventory turnover days.

Driven by its sustainable management philosophy, CX TECH has been actively promoting ESG practices. We launched our carbon inventory in 2022 and extended it to our subsidiaries in the third quarter of 2023. We completed the carbon inventory of our subsidiaries in 2024. In the same year, our parent company, Vietnam plant, and Merrimack River Precision obtained ISO 14064-1 certification. From that year onward, we have been planning and regularly conducting a complete inventory of the parent company and major subsidiaries annually.

Since the end of 2022, CX TECH signed a contract with an international energy company to purchase green energy certificates. This will not only continue to increase the company's green energy coverage, but also meet the needs of customers to achieve carbon neutrality by 2025, so as to enhance the company's environmental image and international competitiveness. CX TECH began adding power-saving equipment in 2023, such as inverter energy-saving system devices, and monitors electricity consumption in its plants 24 hours a day. This has reduced the average electricity consumption equivalent by 10% from 2022 to 2024. In 2024, a wastewater recycling program was introduced to improve water resource recycling and reuse and reduce water consumption by 30%. Improvements to waste management focused on source reduction and optimized packaging. These efforts streamlined material waste in the production process and utilized biodegradable or recyclable packaging materials to implement the 3R principles, contributing to a greener environment.

CX TECH has continued to purchase International Renewable Energy Certificates (I-REC) and, in 2025, complied with the Vietnamese government's green electricity policy to enhance green electricity utilization rates. In terms of plant operations, we continue to improve manufacturing processes, reduce material usage, and introduce RFID inventory control to boost energy efficiency.

The external environment remains highly uncertain in the short term, given complex geopolitical challenges including the ongoing Russia-Ukraine conflict and turmoil in the Middle East, as well as global tariff barriers. At CX TECH, we have remained resilient, and proactively respond to the turbulent situation. We continue to refine scheduling management through digitalization and production automation, ensuring excellent quality while strengthening our core competitiveness to drive stable growth and reduce operating costs.

Thanks to the strong support of our shareholders and the collective efforts of our employees, CX TECH has successfully transformed from a small and medium-sized enterprise in Taoyuan Zhongli into a multinational listed company. By entering the field of plastic components through the establishment of Merrimack River Precision Industrial Corporation, we have realized integrated planning of core technology, vertical production, and global channels, securing control over production and sales. This has allowed us to establish ourselves as the hidden champion in the speaker component market with product diversification and high added value. Looking ahead to 2026, and facing the turbulent international landscape changes, CX TECH has upheld the spirit of "seeking stability amidst turmoil and progress via stability" and will continue to develop diverse industrial chains to achieve continued success with firm steps.

Two. Organizational Strategy

I. Directors (including independent directors)

Unit: shares
April 13, 2026

Title	Nationality or place of registration	Name	Gender Age	Date of election (appointment) date	Term of office	Date of first election and job assumption	Shareholding when elected		Number of shares currently held		Current shareholding of spouse and minor children		Shareholding by nominee arrangement		Main experience (educational background)	Other managers, directors or supervisors with relationship of spouse or within second degree of kinship
							Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Title	Name	Relationship
Chairman	Taiwan	Chin Cheng Investment Holding Corp Representative Albert Ting	M 51~60	2024.06.18	3 Years	2000.4.19
2004.9.24	949,495
7,774,582	1.19%
9.72%	1,068,181
8,746,404	1.19%
9.72%	-	-	-	-	MBA, Massachusetts Institute of Technology, USA
Department of Economics, Harvard University, USA
Honorary Alumnus and Honorary Doctoral Degree in Management from National Chi Nan University
Vice President, Morgan Stanley Investment Bank
Vice Chairman, CX Technology Corporation
Chairman, CX Technology (VN) Corporation
Honorary alumnus, the R.O.C. Military Academy (ROCMA)
Eisenhower Fellowship recipient
Chairman, World Vision Taiwan	Director, CX Technology (Shanghai) Corporation
Chairman, Merrimack River Precision Industrial Corporation
Chairman, Phu Hung Securities Corporation
Chairman, Phu Hung Fund Management Joint Stock Company
Chairman & President, Freshfields Capital Corporation
Chairman, Chin Cheng Investment Holding Corp
Chairman, AFC Corporation
Chairman, He Lun Corporation
Distinguished Chair
Professor, International Finance Research Institute, National Sun Yat-sen University	-	-	-

Directors	Taiwan	Chin Cheng Investment Holding Corp Representative: Wang, Chung-Yu	M 81~90	2024.06.18	3 Years	2000.4.19 2007.4.03	949,495 -	1.19% -	1,068,181 -	1.19% -	-	-	-	-	Department of Chemical Engineering, Chung Yuan University Chairman of China Steel Corporation Executive Director, Commission of State-Owned Enterprises, Ministry of Economic Affairs Independent Director, CTBC Bank Co., Ltd. Independent Director of CTBC Financial Holding Co., Ltd. Chairman of CURIEMED CORPORATION Independent Director, Global Wafers Co., Ltd	-	-	-
Directors	Taiwan	Chin Cheng Investment Holding Corp Representative: Wang, Chung-Yi	M 71~80	2024.06.18	3 Years	2000.4.19 2021.7.20	949,495 -	1.19% -	1,068,181 -	1.19% -	-	-	-	-	Graduated from NTOU-National Taiwan Ocean University Visiting Fellow, Master's Program, University of Cambridge Law School, UK Graduate of the Federal Executive Institute, USA Ambassador, Czech Republic Representative Office Director, Bureau of Investigation, Ministry of Justice	General Consultant of Phu My Hung Holdings Group
Directors	Taiwan	Li, San-Jung (Note 1)	M 71~80	2024.06.18	3 Years	2005.6.14	-	-	-	-	-	-	-	-	Graduated from Chinese Culture University President, Macoto Bank Manager, First Commercial Bank Advisor, Financial Research and Training Institute Supervisors, Merrimack River Precision Industrial Corporation	Supervisors, CX Technology (VN) Corporation Supervisors, CX Technology (Shanghai) Corporation Supervisors of Merrimack River Precision Industrial(HD)Co.Ltd	-	-

Independent Directors	Taiwan	Lin, Mei-Ling	F 61~70	2024.06.18	3 Years	2018.06.05	-	-	-	-	-	-	-	-	Department of Accounting, Fu Jen University Supervisor, National Federation of Certified Public Accountants of the Republic of China Partnership Certified Public Accountant, Chief Executive Officer of Crowe (TW) CPAs Partner Certified Public Accountant, First Union Accountants Auditor, DFI Inc. Certified Financial Planning Consultant (CFP), Financial Planning Association of Taiwan, FPAT Tax Agent / Valuation Certified Public Accountant Qualified for Patent Agent Trustee Test	Independent Director, Remuneration Committee member of APPRO PHOTOELECTRON INC. Independent Director, Remuneration Committee member of LeRain Technology Co., Ltd. Remuneration Committee, CX Technology Corporation Audit Committee, CX Technology Corporation		-
Independent Directors	Taiwan	Yang, Yun-Ti (Note 2)	M 71~80	2024.06.18	3 Years	2015.6.16	-	-	-	-	6,330	0.01%	-	-	Department of Banking and Insurance, Feng Chia University Director, Tan Thuan Corporation Sales Manager, Kodak PIXPRO President, Tan Thuan Corporation Supervisors, CX Technology Corporation	Remuneration Committee, CX Technology Corporation Audit Committee, CX Technology Corporation
Independent Directors	Taiwan	Huang, Fu-Hsiung	M 81~90	2024.06.18	3 Years	2024.06.18	-	-	-	-	-	-	-	-	Department of International Trade, Tamkang University Life Insurance Manager, Life Office Management Association Certified Securities Investment Analyst Chairman (Founder), Life Insurance Management Institute of the Republic of China Chief accountant and senior vice president, Nan Shan Life Insurance Co., Ltd. General Manager, American Life Insurance Company, Taiwan Branch	Audit Committee, CX Technology Corporation

Note 1: Resigned on April 3, 2007 due to personal factors and was re-elected as supervisor on June 16, 2009.
Note 2: Resigned on May 31, 2019 due to personal factors.

(I) Major Shareholders of Institutional Shareholders
April 13, 2026

Name of Institutional shareholder	Major Shareholders of Institutional Shareholders	Shareholding percentage
Chin Cheng Investment Holding Corp	Albert Ting/Arthur Ting	46%/46%

(II) Major Shareholders of Institutional Shareholders as the Major Shareholders
April 13, 2026

Name of Institutional shareholder	Major Shareholders of Institutional	Shareholding percentage
-	-	-

(III) Disclosure of Professional Qualifications of Directors and Independence of Independent Directors

Structure of the Board of Directors:

All directors of the Company are elected in an open and fair manner in accordance with the provisions of the Company's Articles of Incorporation, the "Regulations Governing the Election of Directors", the "Regulations Governing the Establishment of Independent Directors of Public Companies and Matters to be Complied with" and "Article 14-2 of the Securities and Exchange Act". The current composition of the Board of Directors consists of three independent directors (42.9%) and four non-independent directors (57.1%), respectively, and all directors are not related to each other as spouses or relatives within the second degree of consanguinity, in accordance with Article 26-3 of the Securities and Exchange Act, Items 3 and 4. For information on directors' professional qualifications, please refer to pages 7-9.

Board of Directors is independent:

The Board of Directors directs the Company's strategy, supervises the management, and is responsible to the Company and its shareholders. The Board of Directors exercises its authority in accordance with the laws and regulations, the Company's Articles of Incorporation, or the resolutions of the shareholders' meeting in all operations and arrangements of the corporate governance system.

The Board of Directors of the Company emphasizes the function of independent operation and transparency, and the directors and independent directors are independent individuals who exercise their duties and responsibilities independently. The three independent directors, in accordance with relevant laws and regulations, together with the authority of the Audit Committee, examine the control of the Company's existing or potential risks, and monitor the effective implementation of the Company's internal controls, the selection (dismissal) of certified public accountants, and the independence and proper preparation of financial statements. In addition, in accordance with the Company's "Regulations Governing the Election of Directors", the cumulative voting system and the candidate nomination system are adopted for the election of directors and independent directors to encourage the participation of shareholders. Shareholders holding at least a certain number of shares may propose a list of candidates, and the qualifications of such candidates and the confirmation of whether there is any violation of the provisions of Article 30 of the Company Law are examined and announced in accordance with the law to protect the shareholders' rights and interests and to avoid monopoly or excessive nomination and maintain independence.

The Company has established a system for evaluating the performance of the Board of Directors and performs an internal self-evaluation of the Board of Directors and self-evaluation of the Board members once a year; The performance evaluation of the Board of Directors covers five major areas, including (1) the extent of participation in the Company's operations, (2) the quality of decision-making by the Board of Directors, (3)

the composition and structure of the Board of Directors, (4) the election and continuing education of directors, and (5) internal control; The self-assessment of board members includes (1) mastery of the company's objectives and tasks (2) knowledge of board members' responsibilities (3) participation in the company's operations (4) internal relationship management and communication (5) professional and continuing education of board members and (6) internal control. The results of the above-mentioned self-assessment shall be disclosed in the Company's annual report after being reported to the Board of Directors.

In addition, in order for the investing public to fully understand the operation of the rest of the Board of Directors, the following information has been disclosed in the Company's annual report: (1) the attendance status of Board members at meetings; (2) Board of Directors' meetings and resolutions; (3) Directors' continuing education; and (4) changes in the shareholdings of Board members (including shareholding ratio, share transfer and pledge setting).

The independent directors are all in compliance with the regulations of the FSC regarding independent directors, and their independence is shown below.

Name	Whether I, my spouse, my second degree relatives or other relatives are directors, supervisors or employees of the Company or its affiliated companies	The number and proportion of shares held by me, my spouse, my second degree relatives, etc. (or in the name of others)	Whether they are directors, supervisors or employees of companies with which the Company has specific relationships	The amount of remuneration for business, legal, financial and accounting services provided by the Company or its affiliates in the last two years
Lin, Mei-Ling	No	Not available	No	Not available
Yang, Yun-Ti	No	Not available	No	Not available
Huang, Fu-Hsiung	No	Not available	No	Not available

Remuneration to directors, president and vice president Remuneration to directors (including independent directors)

December 31, 2025 Unit: NTD thousand

Title	Name	Remuneration of Directors							Total of four items of A+B+C+D as a percentage of net income after tax (%)	Remuneration received for serving as an employee concurrently								Total of seven items of A+B+C+D+E+F+G as a percentage of net income after tax(Note 10)	Remuneration n from investees other than subsidiaries or from the parent company
		Remuneration (A)		Severance and pension (B)		Remuneration of directors (C)		Business execution expenses (D)			Remuneration, bonus, and allowance (E)		Severance and pension (F)		Employee remuneration (G)
		The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	The Company		All companies in the financial statements		The Company	All companies in the financial statements
															Cash amount	Stock amount	Cash amount	Stock amount
Chairman	Representative of Jin Cheng Investment Holding Co., Ltd: Albert Ting	6,520	6,520	-	-	1,286	1,286	171	171	4.89%	4.89%	-	-	-	-	-	-	-	4.89%	4.89%	-
Directors	Representative of Jin Cheng Investment Holding Co., Ltd: Wang, Cheng-Yu	-	-	-	-	644	644	252	252	0.55%	0.55%	-	-	-	-	-	-	-	0.55%	0.55%	-
Directors	Representative of Jin Cheng Investment Holding Co., Ltd: Wang, Cheng-Yi	-	-	-	-	644	644	252	252	0.55%	0.55%	-	-	-	-	-	-	-	0.55%	0.55%	-
Directors	Li, San-Jung	-	-	-	-	644	644	382	382	0.63%	0.63%	-	-	-	-	-	-	-	0.63%	0.63%	-
Independent Directors	Lin, Mei-Ling	-	-	-	-	644	644	399	399	0.64%	0.64%	-	-	-	-	-	-	-	0.64%	0.64%	-
Independent Directors	Yang, Yun-Ti	-	-	-	-	644	644	399	399	0.64%	0.64%	-	-	-	-	-	-	-	0.64%	0.64%	-
Independent Directors	Huang, Fu-Hsiung	-	-	-	-	644	644	327	327	0.60%	0.60%	-	-	-	-	-	-	-	0.60%	0.60%	-
1. Please describe the payment policy, system, standard and structure for remuneration of independent directors, and explain the relationship with the remuneration payment according to the job duties handled, risks and time invested, etc.: In accordance with Article 29 of the Company's Articles of Incorporation, the Company shall allocate not more than 2.5% of the pre-tax earnings of the current year as remuneration to employees and remuneration to directors and supervisors, and the amount of remuneration to directors and supervisors shall vary with the pre-tax earnings and shall be reasonable. 2. In addition to the disclosure of the table above, , the remuneration collected by directors of the Company for providing services to all companies listed in the financial report (such as acting as non-employee consultant): None.

The directors' remuneration for the appropriation of earnings in 2025 has been approved by the board of directors on March 12, 2026.

Remuneration of the President and Vice Presidents:

December 31, 2025 Unit: NTD thousand

Title	Name	Salary (A)		Severance and Pension (B)		Bonuses and Special Allowances (C)		Employee remuneration (D)				Total of four items of A+B+C+D as a percentage of net income after tax (%)		Remuneration from investees other than subsidiaries or from the parent company
		The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company		All companies in the financial statements		The Company	All companies in the financial statements
								Cash amount	Stock amount	Cash amount	Stock amount
President	Johnson Hsiao	3,275	6,474	108	108	143	186	-	-	-	-	2.2%	4.2%	-
President, Vietnam Plant	Eddy Chen		4,201	-	-	-	179	0	-	120	-	0.0%	2.8%	-
Vice President	Kevin Chen	3,144	3,144	108	108	154	154	120	0	120	-	2.2%	2.2%	-

Remuneration of the top 5 managerial officers:

December 31, 2025 Unit: NTD thousand

Title	Name	Salary (A)		Severance and Pension (B)		Bonuses and Special Allowances (C)		Employee remuneration (D)				Total of four items of A+B+C+D as a percentage of net income after tax (%)		Remuneration from investees other than subsidiaries or from the parent company
		The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company		All companies in the financial statements		The Company	All companies in the financial statements
								Cash amount	Stock amount	Cash amount	Stock amount
President	Johnson Hsiao	3,275	6,474	108	108	143	186	-	-	-	-	2.2%	4.2%	-
President, Vietnam Plant	Eddy Chen	-	4,201	-	-	-	179	0	-	120	-	0.0%	2.8%	-
Vice President	Kevin Chen	3,144	3,144	108	108	154	154	120	0	120	-	2.2%	2.2%	-
Associate	Elin Lin	1,945	1,945	85	85	0	0*	100	0	100	0	1.3%	1.3%	-

Name of Managerial Officers for Distribution of Employees' Remuneration and Distribution Status

December 31, 2025 Unit: NTD thousand

Title	Name	Stock amount	Cash amount	Total	Total as a percentage of net income after tax (%)
President	Johnson Hsiao	-	340	340	0.15%
President, Vietnam Plant	Eddy Chen
Vice President	Kevin Chen
Associate	Elin Lin

5. Remuneration Policy

A. If the Company has a profit for the year (profit referring to pre-tax profit before distribution of employee and director remuneration), it must appropriate more than 1% as employees' remuneration and no more than 2.5% as remuneration of the directors. If the Company still has accumulated losses, it must retain sufficient funds to cover those losses.

Of the employee remuneration referred to in the preceding paragraph, no less than 20% shall be allocated for distribution to non-managerial employees. Employee remuneration may be paid in stock or cash, and is eligible for employees of controlling or affiliated companies who meet certain criteria. The Board of Directors is authorized to determine these criteria and the method of payment. The above two matters shall be approved by board resolution and reported to the shareholders' meeting.

B. Salaries and bonuses are determined in accordance with the Company's personnel regulations, based on individual performance and contributions to the Company's overall operations, and with reference to industry standards.

C. Analysis of the ratio of the total remuneration paid by the Company and all companies included in the consolidated financial statements to the Company's directors, supervisors, general manager, and vice presidents to the net income after tax in the parent company only or individual financial statements for the most recent two fiscal years:

Title	The Company				All companies in the consolidated financial statements
	2024		2025		2024		2025
	Total	Percentage of net income after tax%	Total	Percentage of net income after tax%	Total	Percentage of net income after tax%	Total	Percentage of net income after tax%
Directors	11,717	11%	13,852	9%	11,717	11%	13,852	9%
Presidents and Vice Presidents	9,892	10%	7,052	4.%	22,422	22%	14,794	9%
Total	21,609	21%	20,904	13%	34,139	33%	28,646	18%

The total remuneration to directors increased in 2025 compared to 2024. The increase in net profit after tax % is mainly attributable to higher profits in 2025 than in 2024. The decrease in remuneration for the president and vice presidents is primarily due to the retirement of two vice presidents and the resulting reduction in headcount.

II. Management Team

Unit: Shares April 13, 2026

Title	Nationality or place of registration	Name	Gender	Date of job assumption	Shareholding		Shareholdings of spouse and minor children		Shareholding by nominee arrangement		Main experience (educational background)	Current adjunct positions at other companies	Managerial officers with relationship of spouse or within second degree of kinship
					Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage			Title	Name	Relationship
President	Taiwan	Johnson Hsiao	M	2021.03.29	-	-	-	-	-	-	B.S. in Mechanical Engineering, Chung Yuan University President, ESON Precision Industry Co., Ltd. President, Meiloon Industrial Co., Ltd. Manufacturing Director, Hon Hai Precision Industry Co., Ltd.	Chairman, CX Technology (VN) Corporation	-	-	-
President, Vietnam Plant	Taiwan	Eddy Chen	M	2021.03.29	2,151	-	15,454	0.02%	-	-	MBA, Oklahoma University Business Vice President, Chenliang Technology Company Assistant Vice President, Marketing, CX Technology Corporation	Chairman & President, CX Technology (Shanghai) Corporation Chairman, Timing International Trade (Shanghai) Co., Ltd.	-	-	-
Vice President	Taiwan	Kevin Chen	M	2020.03.01	33,750	0.04%	-	-	-	-	Tamkang College of Business Administration Financial Manager, Fumeixing Development Co., Ltd. Accounting Manager, Ding-Hao Acme Co., Ltd. Manager of Management Department, Atlas Technology Corp.	Spokesman, CX Technology Corporation Head of Corporate Governance, CX Technology Corporation		-	-
Associate	Taiwan	Elin Lin	F	2020.03.01	29,360	0.03%	-	-	-	-	Chihlee Institute of Technology Finance Manager, CX Technology Corporation	Acting Spokesman of CX Technology Corporation

III. Human Resources

(I) Employee Information Sheet

Unit: Persons

Year		2024	2025	As of 3/31/2026
Number of employees	Male	738	670	651
	Female	561	541	527
	Total	1,299	1,211	1,178
Average age		34	36	36
Average years of service		6.48	6.92	7.55
Education background distribution ratio	Doctoral degree	0%	0%	0%
	Master degree	2%	2%	2%
	University and College	45%	43%	43%
	Senior high school	24%	25%	26%
	Under senior high school	28%	29%	29%

(II) Labor-Management Relations

A. Training and Development

(A) CX regards its employees as its most important asset and provides necessary and appropriate training and development programs to enable employees to excel in their jobs and continue to achieve the mission goals delivered by the organization, and to continuously create a core competitive advantage for the company.

(B) Training and Development System

a. Induction training: Pre-employment training for new employees.
b. Professional training: business marketing, human resources, financial management, import/export and procurement, information... etc.
c. Management training: Intermediate management training, advanced management training courses.
d. General education training: company values, customer satisfaction, product quality, environmental safety and hygiene.
e. Direct personnel training: workstation-specific skills training.
f. Project-oriented training: participate in various project meetings.

B. Employee welfare measures:

(A) Relaxed and comfortable office environment with surround sound and freshly brewed coffee.
(B) Flexible working hours system, no traffic pressure for colleagues working from a distance.
(C) Employees are entitled to labor insurance, universal health insurance, and free group insurance.
(D) Year-end recreational activities are held to enhance cohesiveness through group activities.
(E) Past activities include equestrian, self-defense, laser gun battle, escape room, virtual VR experience, etc.
(F) Presentation of senior associate awards to thank colleagues for their long term contributions to the company.
(G) Provide year-end bonus, evaluation bonus, and employee remuneration(employee bonus).
(H) Employee Welfare Committee organizes various activities and awards for festivals.
(I) Ex: Birthday gift, May Day gift, Spring Festival gift, travel subsidy, cultural and recreational subsidy, etc.
(J) Subsidies for official leave and regular health checkups to take care of employees' health.

C. Employee shareholding:
(A) Provide employee remuneration in accordance with the Company’s Articles of Incorporation and distribute it based on the actual performance of employees to thank them for their contributions to the enterprise.
(B) Provide an appropriate percentage of shares to employees for subscription in accordance with the Company Law when capital increase is made in cash, in order to achieve the ideal of one family between employers and employees.

D. Retirement system:
The Company established the “Labor Retirement Fund Supervisory Committee” on January 14, 1987 to take care of the employees’ retirement life and to make monthly contributions to the Labor Retirement Fund, and to request actuaries to make annual actuarial calculations and issue actuarial evaluation reports on pensions. For employees who adopt the new pension system, the Company contributes 6% of the employees’ salaries to the employees’ personal accounts in the Bureau of Labor Insurance on a monthly basis. At the same time, the Bank of Taiwan will continue to contribute the appropriate amount of retirement reserve to the Bank of Taiwan for employees who have opted for the old pension plan and employees who have opted for the new pension plan, based on the pension benefit standard of the old pension plan. The pension fund for overseas subsidiaries is a defined contribution plan, and monthly contributions are made in accordance with the local government’s regulations for various types of social security benefits, such as pension and medical benefits.

E. Work environment and employee safety protection measures:
(A) Machine safety management: Comprehensive machine safety management is carried out by defining high-risk machines, specifying safety devices and safe operations, on-site safety inspections, machine safety production, and regular safety audits.
(B) Contractor construction management: The Company has established regulations to control the entry of contractors, inform them of hazards, control special hazard operations, supervise work on site, and even punish violations.
(C) Abnormal accident management: The Company has established an accident management procedure book to standardize the management process of occupational disaster investigation to ensure that accident notification and tracking confirmation can be implemented, and will continue to strengthen the plant’s ability to investigate and improve accident confirmation to avoid recurrence and parallel promotion.

F. Complete fire and safety training:
(A) The company has set up a fire protection facility management standard and conducts annual fire inspection to check all operations and equipment with fire risks to avoid fire hazards.
(B) Strengthening emergency response: In order to build up employees’ ability to respond to and save from disasters in the first instance, the Group has established uniform regulations to enhance employees’ ability to respond, prevent the expansion of disasters, and ensure personal safety. All factories have established emergency response organizations and regular training drills, and hold joint fire relief drills with government fire control units every year to cultivate collaborative disaster relief capabilities.

G. Employee code of conduct:
The company has a code of conduct for employees, which clearly communicates to each employee the welfare system established by the company and regulates the code of conduct that all employees should follow to protect the company’s assets, rights, and image in compliance with legal and ethical principles.
The Company expects its employees to give full play to the corporate culture of New Speed and Simplicity, adopts humane management, and has always had harmonious labor relations.

H. Environmental protection expenses:
The Company’s environmental protection, safety and health are in compliance with legal requirements and there were no disputes, losses or penalties in the last two years and as of the

printing date of the annual report.

The Company has budgeted yearly for hardware maintenance and outsourced testing to ensure the quality of environmental protection and to fulfill the responsibility of environmental protection, which will not have a significant impact on the Company's earnings, competitive position and capital expenditure.

IV. Information and communication security management:

(I) Management structure:

A. The Company's information security authority is the Information Technology Division, with an Information Security Management Director and a Information Security Officer responsible for setting company information security policies, planning information security measures, and implementing related information security operations.

B. The Company's Audit Department is the audit unit for information security monitoring. If the audit reveals deficiencies, the audited unit is immediately required to propose relevant improvement plans and submit them to the Board of Directors, and the effectiveness of the improvements is regularly tracked to reduce internal information security risks.

C. The CPA conducts annual audits of information operations, and if deficiencies are found, requests improvement measures and tracks the results of the improvements.

(II) Information security policies and specific management plans

In order to strengthen the management of information security, to ensure the availability, integrity and confidentiality of information, and to protect it from internal and external threats, whether intentional or accidental, the Company's approach to information security management is divided into six major items, which are described below:

A. Computer Equipment Security Management

(A) The Company's computer servers and application servers are located in a dedicated server room with access control and access records.

(B) The computer room is equipped with independent air conditioning to maintain the operation of computer equipment in a proper temperature environment; and pharmacological fire extinguishers are placed for general or electrical fires.

(C) The mainframe of the server room is equipped with uninterruptible power supply and voltage stabilization equipment, and is connected to the building's own generator power supply system to avoid system crashes caused by unexpected transient power outages or to ensure that the operation of computer applications will not be interrupted during temporary power outages.

B. Network Security Management

(A) Strengthen the network control and configure an enterprise-level firewall at the entrance of the external network connection to block hackers' illegal intrusion.
(B) Establish peer-to-peer VPN connection between Taipei Head Office and overseas operation centers, and use data encryption to avoid illegal extraction during data transmission.
(C) Firewall and spam filtering equipment can be configured to block access to harmful or policy-unacceptable network addresses and content and the sending of spam to strengthen network security and prevent bandwidth resources from being improperly occupied.

C. Virus Protection and Management
(A) Endpoint protection software is installed on the servers and terminal computer equipment, and virus codes are automatically updated to ensure that the latest viruses are blocked, and to detect and prevent the installation of potentially threatening system executable files.
(B) The email server is equipped with mail anti-virus and spam filtering mechanism to prevent viruses or spam from entering the user's computer.

D. System Access Control
(A) The use of each application system by employees is subject to the company's internal system authority application procedures, and after approval by the responsible supervisor, system accounts are created by the Information Technology Division and authorized by each system administrator in accordance with the requested functional authority before access.
(B) The password setting of the account is required to have the appropriate strength and number of characters before it can be approved.
(C) When the employee goes through the exit procedure, he/she must do the information section to delete the system accounts.

E. Ensure the Sustainable Operation of the System
(A) System backup: A professional automatic backup system is built and a daily backup mechanism is adopted. In addition to the local backup of the system and database in the server room, an off-site backup mechanism is also established to ensure absolute data security.
(B) Disaster recovery rehearsal: Each system implements a rehearsal once a year, and after selecting the restoration date reference point, the backup media is stored back in the system host, and then the user confirms the correctness of the restored data in writing to ensure the correctness and validity of the backup media.
(C) The point-to-point VPN line is paired with an additional leased external telecommunication line, and the two lines are used in parallel as a backup to ensure uninterrupted network communication.

(III) Information security promotion and education training

Regular promotion. The Company conducts information security education and training courses for internal employees from time to time each year and requires employees to change their system passwords regularly to maintain account security.

(IV) Resources invested for cyber security management
A. Network hardware equipment such as firewall, mail anti-virus, spam filtering, and network management hubs.
B. Software systems such as endpoint protection system, backup management software, VPN authentication, anti-virus software, etc.
C. Telecommunication services such as multi-lane, off-site backup service, etc.
D. Human resources such as daily system status check, weekly backup and off-site storage of backup media, at least one information security education course per year, annual system disaster recovery exercise, annual internal audit of information cycle, accountant audit, etc.

(V) Information Security Personnel

One information security supervisor and several information security engineers, responsible for

information security structure design, information security maintenance and monitoring, information security incident response and investigation, and information security policy review and revision.

V. For the most recent year and up to the printing date of the annual report, any loss due to major cyber security events, possible impacts and countermeasures. If it cannot be reasonably estimated, explanation of facts for such failure of reasonable estimation shall be described:

The Company had no material information security incidents in the most recent year and as of the date of the annual report.

Three. Corporate Governance

The purpose of corporate governance is to create shared value by establishing a mechanism that aligns the interests of the Company's shareholders, management, directors, and other stakeholders. Its fundamental principles include ensuring an effective corporate governance framework, safeguarding shareholders' rights and interests, ensuring fair treatment of shareholders, respecting stakeholders' rights and interests, maintaining full disclosure and transparency of information, and fulfilling the responsibilities of the Board of Directors.

To keep pace with international trends while taking into account domestic conditions and practices, the Company has adopted a gradual approach by introducing self-regulatory mechanisms, progressively strengthening the foundations of its corporate governance framework, enhancing its internal control system, and advancing the alignment of its corporate governance practices with international standards.

1. Operation of the Board of Directors

The Board of Directors held 4 meetings in 2025. Directors' attendance is as follows:

Title	Name	Actual number of attendance	Actual attendance rate (%)
Chairman	Representative of Jin Cheng Investment Holding Co., Ltd: Albert Ting	4	100%
Directors	Chin Cheng Investment Holding Corp - Wang,Chung -Yu	4	100%
Directors	Chin Cheng Investment Holding Corp - Chung I Wang	4	100%
Directors	Li, San-Jung	4	100%
Independent Directors	Lin, Mei-Ling	4	100%
Independent Directors	Yang, Yun-Ti	4	100%
Independent Directors	Huang, Fu-Hsiung	4	100%

Other Required Disclosures:

甲、Where the operation of a board meeting is subject to one of the following, the board meeting date, session, proposal content, opinion of all independent directors and Company's handling for the opinions of independent directors shall be described:

Matters decided by the board of directors as listed in Article 14-3 of the Securities and Exchange Law: Not applicable.
Except for the aforementioned matters, other resolutions of board meetings subject to dissenting opinions or qualified opinions and equipped with records or written statements None.

乙、The directors' information on the execution of the interest relation bill shall be in the name of the directors, the contents of the bill, the reasons for the withdrawal of the interests, and the participation of the voting circumstances:

Date of board meeting	Proposal content	Name of director	Reason for recusal due to conflicts of interest	Voting participation status
2025/3/10	Proposal for the distribution of year-end bonuses to the Chairman and managers for 2024.	Chairman Albert Ting	Proposal for the distribution of year-end bonuses to the Chairman and managers for 2024.	Chairman Albert Ting and the relevant managers recused themselves due to conflicts of interest. After the convener of the Remuneration Committee presented the review results, the proposal was approved as proposed.
2025/3/10	Proposal for salary adjustments for the Chairman and managers for 2025.	Chairman Albert Ting	Proposal for salary adjustments for the Chairman and managers for 2025.	Chairman Albert Ting and the relevant managers recused themselves due to conflicts of interest. After the convener of the Remuneration Committee presented the review results, the proposal was approved as proposed.
2025/11/13	Proposal for the 2025 year-end bonuses for the Chairman and managerial officers	Chairman Albert Ting	Proposal for the 2025 year-end bonuses for the Chairman and managerial officers	Chairman Albert Ting and the relevant managers recused themselves due to conflicts of interest. After the convener of the Remuneration Committee presented the review results, the proposal was approved as proposed.

丙、Information on the assessment cycle and period, assessment scope, method and assessment content of the board of Directors' self-assessment:

Since November 10, 2020, the Board of Directors has adopted the performance evaluation method of the board of Directors. The board of Directors of the Company regularly evaluates the performance of the board of directors as a whole, functional members and individual directors at the end of each year.

Self-evaluation results of board performance evaluation in 2025: The board as a whole and each functional committee were "excellent", and the self-evaluation results of seven directors were "excellent".

Implementation of board evaluation:

Evaluation cycle	Evaluation period	Evaluation scope	Evaluation method
Executed once a year	2025/1/1-2025/12/31	Board of Directors/individual director members/functional committees	Internal self-evaluation of the board of directors and self-evaluation of directors
Evaluation content
1. Performance evaluation of the Board of Directors: The items and contents of the Self-assessment Questionnaire for Performance Evaluation of the Board of Directors include five aspects:(1) Degree of participation in the operation of the company. (2) Improve the decision-making quality of the board of directors. (3) Composition and structure of the board. (4) Selection and continuous education of directors. (5) Internal control2. Performance evaluation of individual director members: The items and contents of the Self-Assessment Questionnaire for Performance Evaluation of Director Members include six aspects:(1) Mastery of corporate goals and tasks. (2) Cognition of directors' duties. (3) Degree of participation in the operation of the company. (4) Internal relationship management and
2. Performance evaluation of the Board of Directors: The items and contents of the Self-Assessment Questionnaire for Performance Evaluation of Director Members include six aspects:(1) Mastery of corporate goals and tasks. (2) Cognition of directors' duties. (3) Degree of participation in the operation of the company. (4) Internal relationship management and
3. Performance evaluation of the Board of Directors: The items and contents of the Self-Assessment Questionnaire for Performance Evaluation of Director Members include six aspects:(1) Mastery of corporate goals and tasks. (2) Cognition of directors' duties. (3) Degree of participation in the operation of the company. (4) Internal relationship management and
4. Performance evaluation of the Board of Directors: The items and contents of the Self-Assessment Questionnaire for Performance Evaluation of Director Members include six aspects:(1) Mastery of corporate goals and tasks. (2) Cognition of directors' duties. (3) Degree of participation in the operation of the company. (4) Internal relationship management and

communication. (5) Selection and continuous education of directors. (6) Internal control

Performance evaluation of Functional committees: The items and contents of the Self-Assessment Questionnaire for Performance Evaluation of Functional Committees include five aspects: (1) Degree of participation in the operation of the company. (2) Cognition of functional committee responsibilities. (3) Improve the decision-making quality of functional committees. (4) Composition and selection of members of the functional Committee. (5) Internal control

Assessment of the objectives and implementation of strengthening the functions of the Board of Directors in the current and most recent years:

The Company formulates the “Rules for the Procedure of the Board of Directors” in accordance with the “Rules for the Procedure of the Board of Directors of Public Offering Companies” for compliance. After each board of directors, the public information observatory will input the situation of the directors’ attendance at the board of directors and important resolutions of the board of directors.
The company holds regular monthly strategy meetings, at which the board of directors attends the meetings to understand the company’s financial and business conditions, the formulation of major operational strategies and the implementation of relevant plans.
The Board of Directors of the Company leads the strategic direction of the company and supervises the operation of the company’s operational management to gain long-term value for shareholders
In addition, the company continues to arrange board members to communicate with the management team and provide diversified director training courses to enhance the corporate governance ability of directors.
Information on the Operation of the Audit Committee:

In 2025, the Audit Committee convened 4 meetings (A). Independent directors’ attendance is as follows:

Title	Name	Actual number of attendance (B)	Actual attendance rate [B/A]
Independent Directors (convener)	Lin, Mei-Ling	4	100%
Independent Directors	Yang, Yun-Ti	4	100%
Independent Directors	Huang, Fu-Hsiung	4	100%

Other Required Disclosures:

(I) Where the operation of Audit Committee is subject to one of the following, the board meeting date, session, proposal content, resolution result of the Audit Committee meeting and the opinion of the Audit Committee of the Company shall be described.

Matters specified in Article 14-5 of Sectaries and Exchange Act:

With the consent of more than half of all the members of the audit committee, it shall be submitted to the board of directors for resolution, without the consent of more than two-thirds of all the directors without the approval of the audit committee.

In addition to the aforementioned matters, other motions without approval by the Auditing Committee but passed by the Board with more than two-thirds of the Directors: None.

(II) The implementation of the withdrawal of the independent director from the proposal of interest shall state the name of the independent director, the content of the proposal, the reasons for the withdrawal of interest and the circumstances of his participation in the voting: No such situation

(III) Communication between independent directors and internal/external auditors (e.g. discussions concerning the Company's financial and business affairs, the method of communication used, and the outcome).

The internal audit supervisor shall deliver the audit report to the independent director on a monthly basis and communicate the results of the audit report.
The audit supervisor shall attend the regular board meeting as a non-voting participant, and submit a written internal audit business report and oral explanation.
Accountants are invited to examine the financial statements of the company and issue inspection opinions for the reference of the independent directors.
The independent directors will use multiple communication channels (such as telephone, email and face-to-face) to discuss the audit situation and results of the current financial statements of the independent auditors from time to time.
In case of major exchange of views, meetings may be arranged according to the circumstances.
The independent directors of the company have diversified and smooth communication channels with the internal audit supervisor and accountant, and the communication is good.

Date	Object of communication	Communication matter
March 10, 2025	Internal audit	1. The communication object reviews the internal audit report.
2. Describe the execution of the audit operation.
March 10, 2025	Certified Public Accountant	1. Accountants report on key inspection matters of financial statement inspection opinions.
2. Accountants discussed and communicated with participants on the questions raised by them.
May 15, 2025	Internal audit	1. The communication object reviews the internal audit report.
2. Describe the execution of the audit operation.
May 15, 2025	Certified Public Accountant	1. Accountants report on key inspection matters of financial statement inspection opinions.
2. Accountants discussed and communicated with participants on the questions raised by them.
August 11, 2025	Internal audit	1. The communication object reviews the internal audit report.
2. Describe the execution of the audit operation
August 11, 2025	Certified Public Accountant	1. Accountants report on key inspection matters of financial statement inspection opinions.
2. Accountants discussed and communicated with participants on the questions raised by them.
November 13, 2025	Internal audit	1. The communication object reviews the internal audit report.
2. Discussion of the Company’s 2026 audit plan.
November 13, 2025	Certified Public Accountant	1. Accountants report on key inspection matters of financial statement inspection opinions.
2. Accountants discussed and communicated with participants on the questions raised by them.

		participants on the questions raised by them.

Highlights of the Audit Committee’s annual work:

Date of board meeting	Period	Motion Content and Resolution Result	Dissenting opinions of independent directors	Results of Audit Committee Resolutions	An independent director has a dissenting or qualified opinion which is on record or stated in a written statement.
2025/03/10	3rd Meeting of the 2nd Term	1. The Company’s 2024 Internal Control System Statement
2. The Company’s 2024 Annual Financial Report
3. Proposal for the assessment of the independence and competence of the independent auditors for the Company’s 2025 financial statements.
4. In accordance with the revisions to the International Code of Ethics for Professional Accountants, it is proposed to approve the provision of non-assurance services by the independent auditors for 2025.	No	Approved	Not available
2025/05/15	4th Meeting of the 2nd Term	1. The Company’s Financial Report for the Q1 of 2025	No	Approved	Not available
2025/08/11	5th Meeting of the 2nd Term	1. The Company’s Financial Report for the Q2 of 2025	No	Approved	Not available
2025/11/13	6th Meeting of the 2nd Term	1. Proposal for amendments to the Company’s Internal Control System
2. The Company’s 2026 audit plan
3. The Company’s Financial Report for the Q3 of 2025
4. Proposal for the provision of endorsements and guarantees by the Company to its subsidiaries for 2026.	No	Approved	Not available

The Audit Committee held 4 meetings in the past year, and deliberated on the following matters:

Financial statement audit and accounting policies and procedures.
Confirm key check indicators.
Internal control system and related policies and procedures.
Major capital loan and endorsement or guarantee.
Audit Quality Indicators for Accountants (AQIs) assess the independence and competence of certified public accountants.
Proposal to approve the independent auditors’ provision of non-assurance services for 2025 in accordance with the revised International Code of Ethics for Professional Accountants.

(I) Review of financial statements

The Board of Directors has prepared the Company’s 2025 Business Report, financial statements, and proposal for the appropriation of earnings. The financial statements have been audited by Deloitte Taiwan, which has issued an audit report thereon. The aforementioned Business Report, financial statements, and proposal for the appropriation of earnings have been reviewed by the Audit Committee, which found no material non-compliance.

(II) Evaluating the Effectiveness of internal Control System The Audit Committee evaluates the

effectiveness of the company's internal control system policies and procedures (including financial, operational, risk management, information security, outsourcing, compliance and other control measures), and reviews the periodic reports of the company's audit department and certified accountants, as well as management, including risk management and compliance. The Audit Committee considers that the Company's risk management and internal control systems are effective and the Company has adopted necessary control mechanisms to monitor and rectify irregularities.

(III) Appointment of Certified Public Accountant

The Audit Committee is entrusted with the responsibility of monitoring the independence of the visa accounting firm to ensure the fairness of the financial statements. Generally speaking, except for tax-related services or specially approved items, the visa accounting firm shall not provide other services of the company. All services provided by the visa accounting firm must be approved by the Audit Committee.

In order to ensure the independence of the certified public accountants firm, the Audit Committee formulated an independence assessment form with reference to Article 47 of the Certified Public Accountants Act and the Bulletin of the Code of Ethics for Certified Public Accountants No. 10 "Integrity, impartiality, Objectivity and Independence" to evaluate the independence, professionalism and competence of accountants. Evaluate whether they are related parties, have business or financial interests with the company. At the 3rd Meeting of the 2nd Term of the Audit Committee and the 4th Meeting of the 19th Term of the Board of Directors, both held on March 10, 2025, it was resolved that the CPAs, Ms. Kathy Huang and Mr. Hugh C. Chang, of Deloitte Taiwan meet the independence assessment criteria and are qualified to serve as the Company's independent auditors for financial and tax reporting.

3. Operating Status of the Remuneration Committee

Composition, Responsibilities, and Operation of the Remuneration Committee

The Compensation Committee of the Company was established on August 24, 2011 to assist in the formulation and regular review of policies, systems, standards and structures for performance evaluation and compensation of directors and managers. Regularly evaluate and determine the remuneration of directors and managers.

Remuneration Committee Member Information
March 31, 2026

Criteri Identification	Name	Professional Qualifications and Experience
Independent Directors (convener)	Yang, Yun-Ti	See P7-9 Disclosure of Professional Qualifications of Directors and Independence of Independent Directors
Independent Directors	Lin, Mei-Ling
	Liu, Jian-You	Bachelor of Laws, National Taiwan University
Master of Laws, Graduate School of Law, National Chengchi University
Qualified for the bar exam
Qualified as a Patent Attorney	Attorney of Hong Young Law Office	None

Information on the Operation of the Remuneration Committee

The Company's Remuneration Committee consists of three members.

The term of office of the current members: July 18, 2024 to June 17, 2027. The Salary and Compensation Committee convened four times in 2025, with the following attendance:

Title	Name	Actual number of attendance	Actual attendance rate (%)
Convener	Yang, Yun-Ti	4	100%
Committee member	Lin, Mei-Ling	4	100%
Committee member	Liu, Jian-You	4	100%

The reasons for the discussion of the Compensation Committee and the results of the resolution and the Company's handling of the opinions of the members

Meeting date	Proposal content	Resolution result	Remarks
2025/3/05	1. Proposal for 2024 year-end bonuses for the Chairman and managers	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-
	2. Proposal for the payment of amounts due at year-end under the President’s appointment agreement.	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-
	3. Proposal for salary adjustments for the Chairman and managers.	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-
	4. Total employee remuneration	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-

	5. Distribution of the remuneration of the directors.	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-
2025/05/09	Distribution of the President’s performance bonus for 2024.	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-
	2024 Manager’s compensation for the year.	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-
2025/8/6	President’s service agreement proposal for years 2026 to 2030.	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-
2025/11/6	Proposal for the 2025 bonus budget appropriation for the Chairman and managers.	After the Chairman consulted all members present, the proposal was approved without objection and submitted to the Board of Directors for approval.	-

Other Required Disclosures:

(1) Where the Board of Directors does not adopt or amends the recommendations of the Remuneration Committee, the Company shall disclose the date and term of the board meeting, details of the proposal, the Board’s resolution, and how the Company has addressed the Remuneration Committee’s recommendations: None.

(2) In case where any member object or express qualified opinions to the resolution made by the Remuneration Committee, whether on-record or in writing, please describe the date and session of the meeting, details of the agenda, the entire members’ opinions, and how their opinions were addressed: None

Status of Corporate Governance:

Evaluation Item	Operating Status			Discrepancies from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
1. Does the Company follow the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” to establish and disclose its corporate governance practices?		√	The Company has not yet established.	The Company has not yet established, and the future will be based on the development needs of the Company and legal regulations.
2. Ownership Structure and Shareholders’ Rights
(1) Has the Company established the internal procedures for handling shareholders’ proposals, doubts, disputes, and litigation matters; in addition, have the procedures implemented accordingly?	√		The Company has a spokesperson who can effectively handle issues related to shareholders’ proposals or disputes; if legal issues are involved, legal counsel will be called upon to assist in handling them.	No significant differences

Evaluation Item	Operating Status			Discrepancies from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
(2) Does the Company have the lists of major shareholders who actually control the Company and the ultimate controller list of major shareholders?	☑		The Company keeps track of the shareholdings of directors, managers and the top 5 shareholders, and keeps track of the list of major shareholders who actually control the Company.	No significant differences
(3) Has the company established and implemented risk management practices and firewalls for companies it is affiliated with?	☑		Endorsement guarantee, capital loan and so on between the company and related enterprises are controlled in accordance with the relevant measures of the company’s internal control system. Implement and relate enterprise risk control mechanism.	No significant differences
(4) Has the Company established internal policies that prevent insiders from trading securities against non-public information?	☑		The Company has formulated the “Internal Material Information Processing Operation Procedures”. Changes in the shareholding of relevant personnel and insiders (directors, managers and shareholders holding more than 10% of the total shares) shall be handled in accordance with the relevant provisions of the Securities and Communications Law, and shall be reported on the designated website - Public Information Observatory on a monthly basis.	No significant differences
3. Composition and Responsibilities of the Board of Directors
(1) Has the board of directors established diversity policy, specific management goal and has executed properly?		☑	The members of the board of directors of the company have various professional knowledge and skills	The Company has not yet established, and the future will be based on the development needs of the Company and legal regulations.
(2) Apart from the Remuneration Committee and Audit Committee, has the Company assembled other functional committees at its own discretion?		☑	The company depends on the actual situation in the future
(3) Has the Company established a set of policies and assessment tools to evaluate the board’s performance? Is performance evaluated regularly at least on an annual basis? In addition, has the result of the performance assessment been submitted to the board of directors’ meeting and used as reference for the remuneration and nomination or reelection of individual directors?	☑		The Company has formulated the “Board Performance Evaluation Method” approved by the Board of Directors. At the end of each year, the Financial Department shall conduct performance evaluation of the board of directors, individual board members and functional committees (including audit committee and compensation committee) through internal self-evaluation questionnaire.	No significant differences

Evaluation Item	Operating Status			Discrepancies from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			The results of the assessment will be reported to the Board of Directors as a reference in the selection or nomination of directors and as recommendations for improving the effectiveness of the board of Directors and functional committees.

The evaluation items mainly include the degree of participation in the operation of the company, the quality of decision-making at the meeting, the composition and structure of the board of directors and functional committee, the selection and continuous training of directors and members, and internal control.
The company has carried out the performance evaluation of the board of Directors and functional committee for 2025, and the evaluation results of all aspects have reached the indicators, indicating that the overall operation of the board of Directors and the committee is perfect. The performance evaluation results have been reported to the board of Directors on March 12, 2026. | |
| (4) Does the Company assess the independence of CPAs on a regular basis? | ✓ | | The company evaluates the independence and competence of the certified public accountants annually and submits the results to the Audit Committee and the Board of Directors for approval.
During the current year, the Company evaluated the independence and competence of its independent auditors with reference to the Audit Quality Indicators (AQIs). The evaluation results were reviewed and approved by the Audit Committee and the Board of Directors on March 10, 2025.
The evaluation items of independence indicators include:
1. Does the certified accountant Public not serve as a director of the company or its affiliated enterprises?
2. Is the certified accountant not a | No significant differences |

Evaluation Item	Operating Status
	Yes	No	Summary
			shareholder of the company or its affiliated enterprise?
3. Does the independent auditors not pay salary in the company or related enterprises?
4. Does the certified public accountant confirm that his/her joint accounting firm has complied with the standards of independence?
5. Does the joint certified public accountant of the joint accounting firm belonging to the independent auditors not serve as the director or manager of the company or have significant influence on the audit case within one year after his resignation?
6. The independent auditors has not provided audit services for the company for seven consecutive years.
7. Does the independent auditors issue a declaration of independence in accordance with the Bulletin of the Code of Ethics for Accountants No. 10?
8. Whether the independent auditors meets the audit quality index (AQIs) and other 8 items.

Evaluation Item	Operating Status			Discrepancies from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
4. Does the company allocate an appropriate and appropriate number of corporate governance personnel and designate a corporate governance supervisor to be responsible for corporate governance related affairs (including but not limited to providing information required by directors and supervisors to perform business, handling matters related to the board of directors and shareholders’ meeting in accordance with the law, handling company registration and change registration, preparing minutes of the board of directors and shareholders’ meeting, etc.)?	✓		The board of Directors of the Company approved on January 20, 2023 that Kevin Chen, deputy General Manager of finance of the Company, concurrently serve as the director of corporate governance of the Company (who has more than three years of experience in finance, stock affairs and discussion of public offering companies), responsible for leading and supervising the handling of corporate governance related affairs and providing director support. The scope of authority includes:

Handle matters relating to meetings of the Board of Directors and shareholders’ meetings in accordance with applicable laws and regulations.
Prepare minutes of the board of directors and shareholders’ meetings.
Assist directors in taking office and continuing education
Provide information necessary for the directors to perform their business.
Assist directors in complying with applicable laws and regulations.
Other matters stipulated in the articles of association, etc.
The business execution of the corporate governance supervisor is as follows:
Formulate and plan the review and amendment of corporate governance rules and regulations to implement compliance with laws and regulations.
Provide information necessary for directors to carry out their business and assist directors to comply with laws and regulations.
Assist new directors to take office and provide relevant support.
Arrange refresher courses for individual directors (at least 6 | No significant differences |

Evaluation Item	Operating Status			Discrepancies from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			hours of training for each director per year and 12 hours for new directors in the current year).
5. Plan each board meeting and notify all directors to attend and provide sufficient information less than 7 days prior to the meeting, and send the minutes of the board meeting within 20 days after the meeting.
6. Handle the registration of shareholders’ meeting in advance according to law, prepare the meeting notice, procedure manual, report and procedure book, and handle the registration of company change.
The corporate governance officer has completed the continuing education hours required by law annually.
5. Has the Company provided proper communication channels and created dedicated sections on its website to address corporate social responsibility issues that are of significant concern to stakeholders (including but not limited to shareholders, employees, customers and suppliers)?	✓		The company has special personnel as the company’s external communication channels, directly contact with stakeholders, so that they understand the company’s operation status.
The company website shall set up a special area for stakeholders http://www.cxtechnology.com/fund3	No significant differences
6. Has the Company commissioned professional stock agency institution to handle shareholders’ meeting affairs?	✓		The company appointed Fubon Comprehensive Securities Co., LTD. Stock agency to handle the affairs of the shareholders’ meeting.	No significant differences
7. Information disclosure
(1)Has the Company established a website that discloses financial, business, and corporate governance-related information?		✓	Corporate finance, business and corporate governance information are disclosed in the public information Observatory in accordance with regulations.	The company’s website was not disclosed
(2)Has the Company adopted other means to disclose information (e.g. English website, assignment of specific personnel to collect and disclose corporate information, implementation of a spokesperson system, broadcasting of investor conferences via the company website)?	✓		The company has special personnel responsible for information collection, and the implementation of the spokesperson system.	No significant differences

Evaluation Item	Operating Status			Discrepancies from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
(3)Has the Company made public announce and report the annual financial statements within a period of two months after the end of each fiscal year, and has the Company also made an announcement and provided a report of the first, second and third quarter financial statements as well as the monthly business operation status		✓	The company’s first, second and third quarterly financial reports and monthly operating conditions can be announced in advance before the specified deadline.	Failure to comply at the end of the year
8. Does the Company have other important information (including but not limited to employees’ benefits and rights, employee care, investor relationship, supplier relationship, rights of stakeholders, educational training status of directors and supervisors, implementation of risk management policy and risk measurement standards, customer policy implementation status, purchase of liability insurance for directors and supervisors of the Company etc.) helpful to the understanding of the corporate governance operation status of the Company?	✓		Employee rights and interests: The company regularly conducts employee satisfaction surveys so that employees’ opinions can be valued and effectively communicated. Employee care: The company provides employees with a good working environment and reasonable welfare measures, in addition to the stability of employees in work and life security, to create a common goal, and conscientious and good management to create the company’s business performance, and then share the profits of the company with employees. Investor relations: The company has a “spokesperson line” through which investors can learn about the company and use it as a contact method with the company. Supplier relationship: The company has formulated “Supplier management Measures” to maintain smooth communication channels with suppliers and uphold the principle of good faith. Rights of interested parties: The company shall maintain smooth communication channels for the rights of interested parties, and respect and safeguard their legitimate rights and interests. When the legitimate rights and interests of interested parties are infringed, the company will uphold the principle of good faith to deal with it properly. Further education of directors: All the directors of the company have professional background. The company knows the directors from	No significant differences

Evaluation Item	Operating Status
	Yes	No	Summary
			time to time and attends the professional knowledge further education courses held by relevant units (see the table below)Attendance of directors at the board of Directors: The company shall hold the board of directors at least once a quarter and may convene it at any time in case of emergency. The attendance of directors at the board of directors is in good condition. Implementation of risk management policies and risk measurement standards: The Company implements various policies in accordance with relevant laws and regulations, and has internal auditors to ensure that the implementation of relevant policies is in accordance with regulationsImplementation of consumer protection or customer policy: The company has dedicated business and business assistants for all customers to ensure timely response to customer needs. Implementation status of customer policy:We always keep close contact with customers, inform them of the products in line with their interests, and ensure that the products achieve the expected reliability and quality.Circumstances in which liability insurance is purchased for directors: The Company has purchased liability insurance for directors and managers, evaluates the amount of insurance regularly every year and reports to the board of directors on the renewal of directors' liability insurance.
9. Please provide explanation on the improvement status of the corporate governance evaluation announced by Taiwan Stock Exchange (TWSE) in the most recent year, and provide priority enhancement and measures for matters yet to be improved.		√	The following table

Further education of directors of the company in 2025:

Corporate Governance Assessment Priorities and Enhancement Measures

Item	Not yet improved project	Improvement Measures
1	Does the Company have a Code of Corporate Governance that has been approved by the Board of Directors?	Scheduled to be established in 2026

Deviation of the Company's actual promotion of sustainable development execution status from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and cause thereof

Evaluation Item	Operating Status			Discrepancies from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
1. Has the company established a governance structure to promote sustainable development and set up a special (part-time) unit to promote sustainable development, which is authorized by the board of directors to be handled by senior management, and is supervised by the board of directors?		√	Under evaluation by the Company	The future will depend on the company's development needs and legal regulations.
2. Does the Company conduct risk assessments for environmental, social, and governance issues related to its operations based on the materiality principle, and has it formulated relevant risk management policies or strategies?		√	Under evaluation by the Company	The future will depend on the company's development needs and legal regulations.
3. Environmental Issues
(1) Has the Company established environmental policies suitable for the Company's industrial characteristics?	√		The company has established environmental management procedures and obtained ISO-14001 certification. The company complies with and implements environmental protection policies to reduce the environmental impact of products and reduce the spread of hazardous substances used, to comply with international regulations and meet customer needs and to improve the environmental performance of products.	No significant differences
(2) Is the Company committed to achieving efficient use of resources, and using renewable materials that	√		Our company is committed to environmental protection	No significant differences

Evaluation Item	Operating Status			Discrepancies from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
produce less impact on the environment?			regulations, to improve the process of water recycling to effectively save water and to reduce waste of resources by enhancing the recycling of cartons and waste materials. We have also established an ecological pond at the plant to monitor the impact on the environment.
(1) Has the company evaluated the climate change on the present and future potential risks and opportunities of the corporation, and has the company adopted responsive actions on climate related issues?	✓		The company has a dedicated environmental management staff to ensure compliance with environmental related laws and regulations. Implementation of paperless office operation to reduce paper waste, continuous promotion of “green purchasing” in all production plants, and requiring suppliers of raw materials for manufacturing processes to provide declarations guaranteeing that their products do not contain banned substances that are harmful to the environment	No significant differences
(2) Has the company statistically analyzed the greenhouse gas emission, water usage and total waste weight over the past years, and has the company established policies for energy saving, carbon reduction, greenhouse emission reduction, reduction of water usage or other waste management?	✓		The Company conducts annual inventories to track greenhouse gas emissions, water consumption, waste volume, recycled material usage, and electricity consumption, etc. The Company has taken the following initiatives to achieve the above-mentioned goals
(i) Energy consumption and greenhouse gas emission	No significant differences

Evaluation Item	Operating Status
	Yes	No	Summary
			reduction: The Company’s main source of greenhouse gas emissions is electricity, so the reduction of electricity use and the improvement of energy efficiency are the Company’s top priorities. The Company promotes energy conservation internally to achieve continuous improvement, energy saving and carbon reduction.
(ii) Reduction of water consumption: The Company’s water conservation measures management process is divided into plant systems and process equipment for separate management, continuous improvement of process wastewater recycling system performance, and regular internal water conservation discussion and improvement meetings to promote water conservation.
(iii) Waste management: The Company attaches importance to waste management by improving the manufacturing process and reducing the amount at source in order to reduce the production of waste (including air pollutant emissions) and to recycle and reuse it in the plant to reduce the amount of new raw materials purchased and also to reduce the generation of waste.
(iv) Pollution prevention and control: The Company promotes green products and green production through process design and

Evaluation Item	Operating Status
	Yes	No	Summary
			technology enhancement to reduce the consumption of raw materials, which not only reduces pollution emissions at source, but also lowers operating costs, reduces resource consumption and reduces the impact on the environment.
4. Social issues
(1) Has the Company established related management policies and procedures in accordance with applicable laws and the international human rights conventions?	✓		The Company follows the SA8000 international standard and has established a “Code of Conduct” that clearly states that child labor is prohibited and related remedies are available. Any unlawful discrimination against employees in hiring and actual work, including race, class, language, ideology, religion, party affiliation, national origin, place of birth, color, age, gender, sexual orientation, marriage, appearance, facial features, nationality, disability, pregnancy, union membership, masked veteran status, etc., is strictly prohibited.
The company attaches great importance to labor safety and labor welfare in accordance with relevant labor laws and regulations. The basic salary, working hours, leave, pension payment, labor health insurance payment and occupational disaster compensation of the employees employed by the company are in accordance with the relevant provisions of the Labor Standards Law.	No significant differences

Evaluation Item	Operating Status			Discrepancies from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			Set up a staff welfare committee to handle various welfare matters through a welfare committee elected by the staff. Hold regular meetings between labor and management to understand the ideas of both sides to achieve a win-win situation.
(2) Has the Company developed and implemented reasonable employee welfare measures (including compensation, leave of absence and other benefits), and appropriately reflected business performance or outcome in employees’ compensations?	✓		If the company makes profits in the current year, it shall allocate more than 1% to the employees’ remuneration, which shall be distributed in stock or cash by resolution of the board of directors. The distribution objects may include the employees of the affiliated company who meet certain conditions; The company formulates attendance measures in accordance with the Labor Benchmark Law, specifying employees’ right to leave. In addition to general benefits such as labor insurance, health insurance, group insurance and pension payment, Benefits provided by the company include annual bonus, birthday and festival gift money, year-end party, wedding and funeral celebrations, domestic and foreign travel, emergency assistance, scholarship subsidies, on-the-job training subsidies, maternity subsidies, group meals, and provide complete education and training seminars, etc. The company is also committed to the implementation of a friendly	No significant differences

Evaluation Item	Operating Status			Discrepancies from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			and equal workplace environment. Men and women receive equal pay for equal work and have equal promotion opportunities.
(3) Does the company provide a safe and healthy working environment for employees and conduct regular safety and health education for employees?	✓		The company regularly organizes employee health examination, strengthens supervision of labor safety and health management of all departments, provides appropriate and adequate protection measures, and develops employees’ emergency response ability and safety concept through labor safety and health training to maintain employees’ health and safety.	No significant differences
(4) Has the Company established a plan for the training of effective career development and planning of employees?	✓		In order to enable employees to have professional quality and development advantages, the company holds internal training courses and sends out professional training from time to time.	No significant differences
(5) Has the Company complied with laws and international standards with respect to customers’ health, safety and privacy, marketing and labeling in all products and services offered, and implemented consumer or customer protection policies and complaint procedures?	✓		Manufacturing plants continue to promote “green procurement” and require suppliers of raw materials to provide a declaration that their products do not contain banned substances harmful to the environment.	No significant differences
(6) Has the company established a supplier management policy, requested suppliers to comply with relevant regulations with regards to the issues of environmental protection, occupational safety and health or labor rights etc. and the implementation status thereof?	✓		The Company will require raw material suppliers to conduct regular inspection against REACH and ROHS regulations. At present, before the company communicates with suppliers, and there are MSDS for products, the procurement will establish hazardous substance	No significant differences

Evaluation Item	Operating Status			Discrepancies from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			management procedures for suppliers, requiring suppliers to provide relevant information of HSF(excluding hazardous management substances) materials, and conduct environmental management substance evaluation and investigation on suppliers through the quality assurance unit as the evaluation basis for the company to communicate with suppliers.
Has the Company prepared sustainability reports or other reports disclosing non-financial information in accordance with internationally recognized reporting standards or guidelines? Have the aforementioned reports obtained assurance opinions or assurance from a third-party assurance provider?	☑		The Company prepared sustainability reports and other reports disclosing non-financial information in accordance with internationally recognized reporting standards or guidelines for the year 2024.	No significant differences
5. If the Company has established its own sustainable development principles in accordance with the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies,” please describe its implementation and any differences from such principles: Not yet set.
6. Other important information that facilitates understanding of the status of sustainable development promotion:
(1) Environmental protection: it is everyone’s responsibility to promote environmental protection and low-carbon activities. In addition to strengthening energy saving control of the process, the company actively implements waste classification and resource recycling, promotes energy saving and carbon reduction, and invests in energy saving and carbon reduction equipment expenditure. To implement environmentally friendly issues such as energy conservation and greening, and formulate management procedures for the prohibition and restriction of hazardous substances.
(2) Social welfare: participated in social welfare activities for 2022
A. Participate in the Taoyuan Local Youth Training Program of World Vision Taiwan, and donate NT $5 million only, which will be paid annually according to the schedule of the program from 2022 to assist the sound development of Taoyuan youth.
(3) Consumer rights and interests: For customers, the company has set up a “customer complaint and feedback process” internally to provide customers with a channel for complaining, and has signed supply contracts and quality contracts with customers externally, which has perfect protection for customers’ rights and interests.
(4) Human rights: The company has long been committed to promoting equality in the workplace, providing individuals with free expression and development opportunities regardless of race, gender and age, so as to respect individual dignity.

Evaluation Item	Operating Status
	Yes	No	Summary
(5) Safety and health: With the goal of zero disaster, the company is committed to promoting safety and health policies and continuously improving the process and working environment. Through the joint efforts of all staff, the company continuously improves the performance of occupational safety and health.
(6) Employee health care: The company regularly carries out health examination for employees, so that employees can understand their own health status, so as to love and strengthen their health.

6. Climate-related information for publicly listed companies:

I. Implementation of climate-related information disclosure

Item	Implementation
1. Describe the Board of Directors and management’s oversight and governance of climate-related risks and opportunities.	1. The Company has not yet been established or begun operations.
2. Describe how the identified climate risks and opportunities have affected the company’s business, strategy, and finances (short-, medium-, and long-term).
3. Describe the financial impact of extreme weather events and transition actions.
4. Describe how the climate risk identification, assessment, and management process is integrated into the overall risk management system.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analytical factors, and major financial impacts used should be described.
6. If a transition plan for climate-related risks exists, please detail the plan’s content, as well as the indicators and targets used to identify and manage physical risks and transition risks.
7. If internal carbon pricing is used as a planning tool, the rationale for the pricing should be explained.	7. The Company currently does not use internal carbon pricing as a planning tool.
8. If climate-related targets are set, details should be specified regarding the activities covered, greenhouse gas emission scope, planned timeline, and progress made each year. If carbon offsets or renewable energy certificates (RECs) are used to achieve these targets, the source and quantity of carbon reduction	8. In 2025, 9,000 International Renewable Energy Certificates were purchased from SP Carbon Solutions Company (headquartered in Singapore), representing 9,000 MWh of renewable energy generation – equivalent to the generation capacity of the Son Tra Hydropower Plant.
Address: Sơn Trà District, Quang Ngai Province, Vietnam
Certificate validity: August 31, 2025 – August 31,

credits or the quantity of RECs should be specified.
9. Greenhouse gas inventory and assurance status, as well as reduction targets, strategies, and concrete action plans (detailed separately in 1-1 and 1-2).
1.1 Greenhouse gas inventory and assurance status of the Company for the most recent two years:

1.1.1 Greenhouse gas inventory information

The greenhouse gas emissions for the last two years are as shown in the following table: The Scope 1 and 2 inventory for 2025 covered the parent company and the Vietnam plant. The 2024 greenhouse gas inventory was verified by a third party in 2025. The 2025 greenhouse gas inventory is expected to receive third-party verification in June 2026.

Year	Direct Scope 1 (tonnes CO2e)	Energy, indirect Scope 2 (tonnes CO2e)	Other indirect sources Scope 3 (tonnes CO2e)	Density (Metric tonnes Co2e/metric tonne product)
2024	1,308.53	16,011.22	42,821.88	No statistical data available.
2025	2,532.59	15,669.50	30,012.35	No statistical data available.

1.1.2 Greenhouse gas assurance information

The Company has obtained greenhouse gas assurance external verification for 2024.

The Company expects to undergo greenhouse gas assurance external verification in October 2026.

1.2 Greenhouse gas reduction targets, strategies, and concrete action plans.

To continue to align with the international reduction trend, the Company tracks reductions through greenhouse gas inventory and reduction teams. The Company has conducted greenhouse gas inventories annually since 2022, establishing greenhouse gas emissions based on carbon emissions per unit product (greenhouse gas emissions intensity). Using 2022 as the base year, the Company has worked to reduce emissions year over year to achieve its long-term carbon management goal of carbon neutrality.

CX Carbon Neutrality Roadmap
	Short-term goals	Mid-term goals	Long-term goals
Time	2026	2030	2050
Strategy and concrete action plan	1. 50% carbon reduction
2. Reduce power consumption 15%
3. Purchasing green electricity
4. Supplier adjustments
5. Assess forest carbon sink
6. Carbon Credit Trading Evaluation	1. 75% carbon reduction
2. Power saving
3. Purchasing green electricity
4. Supplier adjustments
5. Assess forest carbon sink
6. Carbon Credit Trading Evaluation	1. 100% carbon reduction
2. Power saving
3. Purchasing green electricity
4. Supplier adjustments
5. Assess forest carbon sink
6. Carbon Credit Trading Evaluation

In 2025, the Company’s scope 1 direct greenhouse gas emissions amounted to 2,532.29 metric tonnes CO2e/year, accounting for 5% of total emissions. Scope 2 indirect greenhouse gas emissions totaled 15,669.5 metric tonnes CO2e/year, accounting for 33% of total emissions. Other indirect emissions (scope 3) amounted to 30,012.35 metric tonnes CO2e/year, accounting for 62% of total emissions.

The Company's greenhouse gas emissions for 2025 were 48,214.44 metric tonnes, a reduction of 11,927.19 metric tonnes CO2e compared to the 2024 base year. This decrease in greenhouse gas emissions intensity from the 2024 base year was primarily due to expanded inventory coverage, including additional investment companies and emission items, and revisions to internationally published coefficients.

Greenhouse Gas Emission Statistics for the Past Two Years

Year	Total emissions	Direct greenhouse gas emissions Scope 1		Indirect greenhouse gas emissions Scope 2		Other indirect emissions Scope 3
	Metric tonnes CO2e/year	Metric tonnes CO2e/year	Percentage	Metric tonnes CO2e/year	Percentage	Metric tonnes CO2e/year	Percentage
2024	60,141.63	1,308.53	2%	16,011.22	27%	42,821.88	71%
2025	48,214.44	2,532.59	5%	15,669.50	33%	30,012.35	62%

The fulfillment of ethical corporate management and the differences and reasons from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies:

Evaluation Item	Operating Status			Discrepancies with the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and Reasons
	Yes	No	Summary
1. Establishment of ethical management policies and plans
(1) Has the company established ethical management policies approved by the board of directors’ meeting and stated in its memorandum or external correspondence about the policies and practices it has to maintain business integrity? Are the board of directors and the management committed in fulfilling this commitment?	✓		The Company has established integrity management operating procedures and a code of conduct to prevent dishonest conduct. These procedures stipulate that employees shall not accept hospitality, bribery, embezzlement of public funds, private dancing or other illegal benefits.	No significant differences
(2) Has the company established assessment mechanism for unethical conduct risk, performed periodic analysis and assessed operating activities of relatively higher unethical conduct risk in the scope of business, and has established unethical conduct solution accordingly, and at least covering the preventive measures	✓		The company will publicize the importance of honest behavior to all internal employees at any time. In case of any dishonest behavior, the company will warn or punish the employees according to the “employee reward and punishment measures” according to the significance of the occurrence and impact. The company has an internal control system, which prohibits

Evaluation Item	Operating Status			Discrepancies with the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and Reasons
	Yes	No	Summary
for the conducts described in each subparagraph of Paragraph 2 of Article 7 of the “Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies”?			managers and employees from engaging in any bribery and illegal behavior.

All acts in violation of regulations will be punished according to the actual situation. | |
| (3) Has the Company defined and enforced operating procedures, behavioral guidelines, penalties and grievance systems as part of its preventive measures against dishonest conducts? Are the above measures reviewed and revised on a regular basis? | ☑ | | The Company has established integrity management operating procedures and a code of conduct, and designated the Human Resources unit as the dedicated unit responsible for revising, implementing, interpreting, providing consultation services for, and filing reported content related to these procedures and the code of conduct. The Auditing unit is responsible for oversight. | No significant differences |
| 2. Implementation of Ethical Corporate Management
(1) Has the Company evaluated the record of the counterparties on business ethics, and explicitly stated business integrity as an integral part of the contracts when entering into agreements with counterparties of trade? | ☑ | | Before any business transaction, the company will conduct a credit rating assessment to consider whether the transaction object has acted in bad faith and set out the penalty for breach of contract in the contract | No significant differences |
| (2) Has the company established a dedicated unit directly under the board of directors and responsible for the promotion of corporate ethical management, and reporting its ethical management policy and proposal for prevention of unethical conducts as well as supervision of implementation status to the board of directors’ meeting periodically (at least once annually)? | ☑ | | The Company has designated its human resources unit as the responsible party for amending, implementing, interpreting, providing consultation services for, and filing reports related to these procedures and behavioral guidelines, as well as handling other relevant operations. The audit unit is responsible for oversight.

The Company’s dedicated unit shall issue an investigation report detailing the reported incident, its handling, and any subsequent | No significant differences |

Evaluation Item	Operating Status			Discrepancies with the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and Reasons
	Yes	No	Summary
			review and improvement actions.
(3) Has the Company established policies to prevent conflicts of interest, provided appropriate methods for stating one’s conflicts of interest, and implemented them appropriately?	✓		The Company encourages internal and external personnel to report unethical or improper conduct, and has provided rewards based on the severity of the reports received. Internal personnel who make false or malicious accusations will be subject to disciplinary action, and those with serious circumstances have been dismissed. The Company has established and publicized an internal, independent reporting mailbox and hotline on its website and intranet, available to both internal and external parties.
(4) Has the Company established effective accounting and internal accounting and control systems for the implementation of ethical corporate management policies, prepared audit plans according to the evaluation results of dishonesty risks, and have they results audited by internal auditors or CPAs?	✓		The Company has a rigorous internal control system to implement the policy of preventing conflicts of interest, and provides an appropriate statement channel for the board of directors, management and all employees to voluntarily explain whether they have potential conflicts of interest with the Company.
(5) Has the Company provided internal and external training on ethical management regularly?	✓		The relevant regulations have been finalized, and education and training on ethical management will be arranged for both internal staff and external parties.
3. Operation of the Company’s Whistleblowing System
(1) Has the Company established a substantive reporting and reward and punishment system and convenient channels for reporting, and appointed designated personnel for handling the targets of reports?	✓		The Company encourages internal and external personnel to report unethical or improper conduct, and has provided rewards based on the severity of the reports received. Internal personnel who make false or malicious accusations will be subject to disciplinary action, and those with serious circumstances have been dismissed.	No significant differences

Evaluation Item	Operating Status			Discrepancies with the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and Reasons
	Yes	No	Summary
			The Company has established and publicized an internal, independent reporting mailbox and hotline on its website and intranet, available to both internal and external parties.
(2) Has the Company established any investigation standard operation procedures for accepting reported misconducts, subsequent measures and relevant confidentiality measures required to be performed after the completion of the investigation?	☑		The Company has established integrity management operating procedures and a code of conduct, including handling of whistleblowing incidents and internal advocacy, establishment of rewards and punishments, a grievance system, and disciplinary action.
(3) Has the Company taken any measures for the protection of the informants or reporters from suffering undue treatment?	☑		The Company’s personnel who handle reports keep the identity of informants or reporters and the content of the reports confidential, and the Company undertakes to protect informants or reporters from undue treatment as a result of making a report.
4. Enhancement of information disclosure
(1) Has the Company disclosed the content of its Corporate Governance Best Practice Principles and the effectiveness of the implementation of the principles on its website and the MOPS?		☑	The regulations were recently finalized, but implementation effectiveness has not yet been achieved.	No significant differences
5. V. If the Company has established its own ethical corporate management best practice principles according to the “Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies”, please specify the difference between its operation and the principles: As these rules were recently established, no operational differences have occurred yet.
6. Other important information to facilitate the understanding of the status of corporate social responsibility operation:
The Company has established integrity management operating procedures and a code of conduct, and will follow relevant laws and regulations as appropriate.
Our company upholds the corporate culture of honesty and integrity to gain the trust of our suppliers and sale customers to achieve the goal of sustainable management.

Code of Corporate Governance and related regulations: None.
Other important information: None.

10. Internal Control System Implementation Status

Internal audit organization and operation

The Company’s Audit Office is staffed with professional auditors and is directly subordinate to the Board of Directors. Responsible for managing the auditing business, including the establishment and implementation of the Company’s internal auditing system and the supervision of subsidiary auditing business. We will evaluate the implementation of the Company’s internal control system and make records of it, and report to the board of directors and supervisors on a regular basis.

Internal Control System Statement

CX Technology Corporation
Internal Control System Statement
Date: March 12, 2026

Based on the results of self-assessment, the Company hereby declares that its internal control system for 2025 is as follows:

I. The Company acknowledges that the establishment, implementation and maintenance of internal control system is the responsibility of the Board of the Directors and managerial officers, and the Company has already established such an internal control system. The purpose of this system is to provide reasonable assurance in terms of business performance, efficiency (including profitability, performance, asset security etc.), reliable, timely and transparent financial reporting, and regulatory compliance.

II. The internal control system has its inherent limitations, and regardless of how perfect the design is, the effectiveness of the internal control system can only provide reasonable assurance of the achievement of the aforementioned three objectives. In addition, due to the change in the environment and circumstances, the effectiveness of the internal control system may be changed. However, the internal control system of the Company is equipped with a self-monitoring mechanisms, and the Company will take corrective actions once any defects are identified.

III. The Company judges whether the design and implementation of the internal control system is effective based on the criteria for judging the effectiveness of the internal control system set out in the Regulations Governing Establishment of Internal Control Systems by Public Companies (hereinafter referred to as the “Regulations”). The internal control system judgment item used in the “Treatment Criteria” is to divide the internal control system into five components according to the management control process: 1. Control environment, 2. Risk assessment and response, 3. Control operations, 4. Information and communication, and 5. Supervise the operation. Each constituent element includes several items. For the aforementioned items, please refer to the requirements of the “Regulations”.

IV. The Company has adopted the aforesaid assessment items for the internal control system to determine whether the design and implementation of the internal control system are effective.

V. Based on the results of the preceding evaluation, the Company concluded that its internal control system (including the supervision and management of subsidiaries) as of December 31, 2025, including the understanding of the extent to which operational effectiveness and efficiency objectives have been achieved, the reporting of such internal control system is reliable, timely, transparent and in compliance with relevant regulations and relevant laws and regulations, and the design and implementation of such internal control system is effective, which can reasonably ensure the achievement of the above objectives.

VI. This statement will form the main content of the Company’s annual report and prospectus and will be made public. If the disclosed content above is false or there is material information concealed deliberately or otherwise, the Company will be legally liable pursuant to Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

VII. This statement was approved at the Board of Directors’ meeting held on March 12, 2026. 7 directors were present, 0 of whom held opposing views.

CX Technology Corporation
Chairman: Albert Ting
President: Johnson Hsiao

Accountant project review of internal control system: None.
Penalties imposed against the Company and its internal personnel for regulatory violation, or penalties imposed by the Company against its employees for violation of internal control policy in the most recent year up till the publication date of this annual report; if the penalty result may have material impact on the shareholders' equity or stock price, it is necessary to describe the penalty content, areas of weakness and improvement status: None.
Major resolutions made by the shareholders' meetings and the board meetings during the most recent financial year and up to the printing date of the annual report

Important resolutions at the 2025 Annual General Meeting of Shareholders:

Frequency	Date	Motion	Implementation and review
1	6/16	Adoption of the Company’s 2024 Business Report and financial statements.	Approved at the 2025 Annual Shareholders’ Meeting.
		Proposal for the distribution of 2024 earnings.	Approved at the 2025 Annual Shareholders’ Meeting.
		Proposal for the adoption of the Company’s Articles of Incorporation	Approved at the 2025 Annual Shareholders’ Meeting.

Contents of important resolutions of the Board of Directors in the latest year and up to the date of publication of the annual report

Frequency	Date	Motion
2025-1	2025/3/10	1. The Company’s 2024 Financial Report.
2. Directors’ remuneration and employee remuneration for 2024.
3. Proposal for the distribution of 2024 earnings.
4. Proposal for amendments to certain articles of the Company’s Articles of Incorporation.
5. The Company’s 2024 Internal Control System Statement.
6. Proposal for matters related to the convening of the Company’s 2025 Annual Shareholders’ Meeting.
7. Proposal for the assessment of the independence and competence of the independent auditors for the Company’s 2025 financial statements.
8. Proposal for year-end payments under the General Manager’s appointment agreement for 2024.
9. Proposal for salary adjustments for the Chairman and managers for 2025.
10. Proposal for the distribution of year-end bonuses to the Chairman and managers for 2024.	Approved
2025-2	2025/5/13	1. The Company’s Financial Report for the Q1 of 2025
2. Proposal for the adjustment of the Company’s credit facilities with financial institutions for 2025.	Approved
2025-3	2025/8/11	1. The Company’s Financial Report for the Q2 of 2025.
2. Proposal for the adjustment of the Company’s credit facilities with financial institutions for 2025.	Approved

| | | 3. Proposal for the appointment of directors to the Company’s investee companies.
4. The renewal of the President appointment contract. | |
| --- | --- | --- | --- |
| 2025-4 | 2025/11/13 | 1. The Company’s Financial Report for the Q3 of 2025 is hereby submitted for approval.
2. Proposal for the approval of the Company’s credit facilities with financial institutions for 2026.
3. Proposal for the provision of endorsements and guarantees by the Company to its subsidiaries for 2026.
4. Proposal for amendments to the Company’s Internal Control System.
5. The Company’s 2026 Internal Audit Plan.
6. Proposal for the appointment of directors to the Company’s investee companies.
7. The Company’s 2026 Business Plan.
8. Proposal for the 2025 year-end bonuses for the Chairman and managerial officers | Approved |
| 2026-1 | 2026/2/12 | 1. Capital increase for the subsidiary CX Technology (Cayman) Corporation and the purchase of land use rights in the Hiep Phuoc Industrial Park in Vietnam. | |
| 2026-2 | 2026/3/12 | 1. Proposal for the distribution of directors’ remuneration and employee remuneration (including managers) for 2025.
2. The Company’s 2025 Financial Report
3. Proposal for the distribution of 2025 earnings.
4. Proposal for a capital increase by retained earnings through the issuance of new shares for 2025.
5. The Company’s 2025 Internal Control System Statement.
6. Proposal for matters related to the convening of the Company’s 2026 Annual Shareholders’ Meeting.
7. The appointed bank formed a syndicated loan group and applied for a loan of NT$1.28 billion.
8. Proposal for the appointment of directors to the Company’s investee companies.
9. Proposal for the change of the independent auditors for the Company’s 2026 financial statements and the assessment of their independence and competence.
10. Proposal for year-end payments under the General Manager’s appointment agreement for 2025.
11. Proposal for the distribution of year-end bonuses to the Chairman and managers for 2025. | Approved |

Documented opinions or declarations made by directors or supervisors against board resolutions in the most recent year and up to the printing date of the annual report: None.

Information on Independent Auditor's Fee:

Amount unit: NT$ thousand

Name of Accounting Firm	Name of CPA	Audit Period	Audit Fees	Non-Audit Fees	Total	Remarks
Deloitte Taiwan	Kathy Huang	2025.01.1~2025.12.31	4,358		4,358
	Hugh C. Chang	2025.01.1~2025.12.31
Deloitte Taiwan	Judy Hsu	2025.01.1~2025.12.31	-	435	435	Transfer valuation report and group main file report, agency fee, etc

Please specify the content of non-audit public fee services (e.g. tax visa, confirmation or other financial advisory services)

Note: If the company changes accountants or accounting firms in this year, please list the audit period respectively, explain the reasons for the change in the remarks column, and disclose the audit and non-audit public fees paid in order. Non-audit public fees shall be accompanied by notes explaining their service contents.

(1) Where non-audit fees paid to the independent auditors, their firm, and its affiliated entities account for 25% or more of the audit fees: None.

(2) The accounting firm is changed and the audit fees paid for the financial year in which the change took place are lower than those paid for the financial year immediately preceding the change: None.

(3) If the audit fee is reduced by more than 10% compared with the previous year, the amount, proportion and reason for the reduction shall be disclosed: none.

(4) Information on change of independent auditors: Not applicable.

(5) The chairman, general manager, manager in charge of financial or accounting affairs of the company, who has worked in the firm to which the independent auditors belongs or its related enterprises in the recent year: none.

Changes in the transfer and pledge of shareholdings by directors, supervisors, managerial officers, and shareholders holding more than 10% of the Company's shares during the most recent fiscal year and up to the date of publication of this annual report.

(1) Changes in equity of directors, managers and major shareholders:

Unit: shares

Title	Name	2025		As of March 31, 2026
		Increase (decrease) in the number of shares held	Increase (decrease) in the number of pledged shares	Increase (decrease) in the number of shares held	Increase (decrease) in the number of pledged shares
Chairman (legal representative)	Albert Ting	-	-	-	-
Directors	Chin Cheng Investment Holding Corp	-	-	-	-
Directors (legal representative)	Wang, Chung-Yu	-	-	-	-
Directors (legal representative)	Wang, Chung-Yi	-	-	-	-
Directors	Li, San-Jung	-	-	-	-
Independent Directors	Lin, Mei-Ling
Independent Directors	Yang, Yun-Ti	-	-	-	-
Independent Directors	Huang, Fu-Hsiung	-	-	-	-
President	Johnson Hsiao	-	-	-	-
President, Vietnam Plant	Eddy Chen	-	-	-	-
Vice President	Kevin Chen	-	-	-	-
Associate	Elin Lin	-	-	-	-

(2) Information on related parties as counterparties to share transfers: None.
(3) Information on related parties as counterparties to share pledges: None.

Information on relationships among shareholders of top ten highest shareholding percentages:

April 13, 2026

Name	Shareholding of the individual		Shareholdings of spouse and minor children		Total shareholding by nominee arrangement		Company Name Or Individual Name And Relationship Of Related Parties Or Spouse Or Kinship Within The Second Degree Among The Top Ten Major Shareholders
	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Name	Relationship
AFC Corporation	8,849,754	9.83%	-	-	-	-	Albert Ting Arthur Ting	Chairman Supervisors
Albert Ting	8,746,404	9.72%	-	-	-	-	Ting-Fei, Tsung-Ching Arthur Ting AFC Corporation Freshfields Capital Corporation Chin Cheng Investment Holding Corp	First-degree relatives Second-degree relatives Chairman Chairman Chairman Chairman
Arthur Ting	8,689,939	9.66%	-	-	-	-	Ting-Fei, Tsung-Ching Albert Ting Freshfields Capital Corporation AFY CORPORATION AFC Corporation Chin Cheng Investment Holding Corp	First-degree relatives Second-degree relatives Directors Chairman Supervisors Directors
Freshfields Capital Corporation	8,675,524	9.64%	-	-	-	-	Albert Ting Arthur Ting	Chairman Directors
Ting-Fei, Tsung-Ching	6,944,756	7.72%	-	-	-	-	Albert Ting Arthur Ting	First-degree relatives First-degree relatives
Lin, Li-Chen	3,418,000	3.80%	-	-	-	-	Spouse of the person in charge of Baiyi Investment Co., Ltd.	spouse
AFY CORPORATION	3,035,957	3.37%	-	-	-	-	Arthur Ting	Chairman
Chen, Ching-Lieh	2,858,000	3.18%	-	-	-	-	-	-
He, Hsiao-Chien	1,696,000	1.88%	-	-	-	-	-	-
Baiyi Investment Co., Ltd.	1,403,000	1.56%	-	-	-	-	he person in charge is Lin, Li-Chen s spouse	spouse

Consolidated shareholding ratio

March 31, 2026

Investee	Investment of the Company		Investment by directors, supervisors, managers, or any companies controlled either directly or indirectly by the Company		Consolidated investment
	Number of shares (shares)	Shareholding percentage%	Number of shares (shares)	Shareholding percentage%	Number of shares (shares)	Shareholding percentage%
CX Technology (Cayman) Corporation	82,595,000	100	-	-	82,595,000	100
CX Investment and Consulting Corporation	3,200,000	100	-	-	3,200,000	100
Merrimack River Precision Industrial Corporation	12,000,000	100	-	-	12,000,000	100

Note: This is a long-term investment made by the company using the equity method

Four. Financial Structure

I. Capital and Shares

(I) Source of share capital

April 13, 2026; Unit: thousand shares / NT$ thousand

Year/Month	Issue price	Authorized capital		Paid-in capital		Remarks
		Number of shares	Amount	Number of shares	Amount	Source of share capital	Capital increased by assets other than cash	Others
1972.02	100	15,000	1,500,000	15,000	1,500,000	Initial Capital 1,500,000	None	-
1977.08	100	60,000	6,000,000	60,000	6,000,000	Capital increase by retained earnings 4,500,000	None	Note 1
1980.07	100	120,000	12,000,000	120,000	12,000,000	Capital increase by retained earnings 6,000,000	None	Note 2
1984.10	100	320,000	32,000,000	320,000	32,000,000	Capital increase by retained earnings 20,000,000	None	Note 3
1989.05	100	500,000	50,000,000	500,000	50,000,000	Capital increase by retained earnings 18,000,000	None	Note 4
1990.09	10	12,500,000	125,000,000	7,500,000	75,000,000	Cash capital increase 25,000,000	None	Note 5
1990.09	10	12,500,000	125,000,000	12,500,000	125,000,000	Capital increase by retained earnings 50,000,000	None	Note 5
1995.06	10	18,750,000	187,500,000	18,750,000	187,500,000	Capital increase by retained earnings 62,500,000	None	Note 6
1996.07	10	24,500,000	245,000,000	20,750,000	207,500,000	Cash capital increase 20,000,000	None	Note 7
1996.07	10	24,500,000	245,000,000	24,500,000	245,000,000	Capital increase by retained earnings 37,500,000	None	Note 7
1997.07	10	26,950,000	269,500,000	26,950,000	269,500,000	Capital increase by retained earnings 24,500,000	None	Note 8
1998.06	55	42,541,250	425,412,500	34,950,000	349,500,000	Cash capital increase 80,000,000	None	Note 9
1998.06	10	42,541,250	425,412,500	42,541,250	425,412,500	Capital increase by retained earnings 75,912,500	None	Note 9
1999.07	10	55,518,625	555,186,250	55,518,625	555,186,250	Capital increase by retained earnings 23,420,625 Capital increase by capital surplus 106,353,125	None	Note 10
2000.05	10	72,374,213	723,742,130	72,374,213	723,742,130	Capital increase by retained earnings 68,622,350 Capital increase by capital surplus 99,933,530	None	Note 11
2001.07	10	124,100,000	1,241,000,000	76,355,923	763,559,230	Capital increase by retained earnings 39,817,100	None	Note 12
2002.07	10	126,366,600	1,263,666,000	78,858,600	788,586,000	Capital increase by retained earnings 25,026,770	None	Note 13
2003.03	10	126,366,600	1,263,666,000	73,170,600	731,706,000	Repurchase of treasury shares Cancellation of shares 56,880,000	None	Note 14
2003.05	10	126,366,600	1,263,666,000	71,265,600	712,656,000	Repurchase of treasury shares Cancellation of shares 19,050,000	None	Note 15
2004.10	10	126,366,600	1,263,666,000	74,206,224	742,062,240	Capital increase by retained earnings 29,406,240	None	Note 16

Year/Month	Issue price	Authorized capital		Paid-in capital		Remarks
		Number of shares	Amount	Number of shares	Amount	Source of share capital	Capital increased by assets other than cash	Others
2006.10	10	126,366,600	1,263,666,000	76,492,411	764,924,110	Capital increase by retained earnings 22,861,870	None	Note 17
2007.08	10	126,366,600	1,263,666,000	83,992,411	839,924,110	Cash capital increase 75,000,000	None	Note 18
2009.06	10	126,366,600	1,263,666,000	83,612,411	836,124,110	Repurchase of treasury shares Cancellation of shares 3,800,000	None	Note 19
2009.09	10	126,366,600	1,263,666,000	83,112,411	831,124,110	Repurchase of treasury shares Cancellation of shares 5,000,000	None	Note 20
2011.12	10	126,366,600	1,263,666,000	81,612,411	816,124,110	Repurchase of treasury shares Cancellation of shares 15,000,000	None	Note 21
2012.08	10	126,366,600	1,263,666,000	85,693,032	856,930,320	Capital increase by retained earnings 40,806,210	None	Note 22
2013.09	10	126,366,600	1,263,666,000	91,177,387	911,773,870	Capital increase by retained earnings 54,843,550	None	Note 23
2016.03	10	126,366,600	1,263,666,000	91,077,387	910,773,870	Repurchase of treasury shares Cancellation of shares 1,000,000	None	Note 24
2017.07	10	126,366,600	1,263,666,000	80,000,000	800,000,000	Cash capital reduction 110,773,870	None	Note 25
2022.09	10	126,366,600	1,263,666,000	90,000,000	900,000,000	Capital increase by retained earnings 100,000,000	None	Note 26

Note 1: Approved under Letter No. 036190.
omitted
Note 16: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Yi-Zi 0930131776 dated July 16, 2004.
Note 17: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Yi-Zi 0950142778 dated September 13, 2006.
Note 18: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Yi-Zi 0960021372 dated May 16, 2007.
Note 19: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-San-Zi 0950124710 dated June 16, 2006.
Note 20: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-San-Zi 0950140463 dated September 4, 2006.
Note 21: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-San-Zi 0970052537 and 0970065444 dated October 2 and November 28, 2008, respectively.
Note 22: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-Zi 1010036360 dated August 17, 2012.
Note 23: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-Zi 1020029775 dated July 31, 2013.
Note 24: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Jiao-Zi 1040044436 dated November 9, 2015.
Note 25: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-Zi 1060023356 dated July 4, 2017.
Note 26: Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi 11101180480 dated September 15, 2022.

April 13, 2026;Unit: shares

Share type	Authorized capital			Remarks
	Number of outstanding shares (listed)	Number of unissued shares	Total
Registered common shares	90,000,000	36,366,600	126,366,600	-

(II) List of Major Shareholders
April 13, 2026

	Name of major shareholder	Number of shares held	Shareholding percentage
1	AFC Corporation	8,849,754	9.83%
2	Albert Ting	8,746,404	9.72%
3	Arthur Ting	8,689,939	9.66%
4	Freshfields Capital Corporation	8,675,524	9.64%
5	Ting-Fei, Tsung-Ching	6,944,756	7.72%
6	Lin, Li-Chen	3,418,000	3.80%
7	AFY CORPORATION	3,035,957	3.37%
8	Chen, Ching-Lieh	2,858,000	3.18%
9	He, Hsiao-Chien	1,696,000	1.88%
10	Baiyi Investment Co., Ltd.	1,403,000	1.56%
	Others	35,682,666	39.65%
	Total	90,000,000	100%

(III) Company's Dividend Policy and Implementation Status

Dividend policy under the Company's Articles of Incorporation

If the Company has a surplus earning after the final account of a fiscal year, after taxes are paid according to the laws and accumulated losses are compensated, $10\%$ of the surplus earning shall be appropriated as the legal reserve; however, if the legal reserve has reached the paid-in capital of the Company, such appropriation may be exempted from the appropriation, and special reserve is further appropriated or reversed from the remaining surplus earning according to the laws. If the remaining surplus is included in the accumulated undistributed earnings, the board of directors shall prepare a proposal for the distribution of the earnings and submit it to the shareholders for a resolution to distribute dividends to shareholders.

The dividend policy of the Company is handled in accordance with the current and future development plans, taking into account the investment environment, capital demand, domestic and international competition, taking into account the interests of shareholders and other factors, as follows:

(1) The total amount of annual dividends shall not be less than $30\%$ of the distributable earnings for the year, except that if the accumulated distributable earnings is less than $3\%$ of the paid-in capital, it may not be distributed.
(2) The dividends to shareholders shall be distributed in cash or in shares, with cash dividends not less than $30\%$ of the total dividends.

Proposed dividend distribution at the shareholders' meeting

As of March 12, 2026, the Board of Directors has prepared a proposal for the distribution of the 2025 earnings, which is subject to the approval of the shareholders' meeting, as follows:

The distribution of the Company’s 2025 earnings, after setting aside 10% of the legal reserve, was made through the distribution of shareholders’ bonuses of NT$143,200,000, including cash dividends of NT$43,200,000 and NT$100,000,000 in stock dividends.

No significant change in dividend policy is expected.

(IV) The effect of the proposed stockless distribution at the shareholders’ meeting on the Company’s operating results and earnings per share.

The Company has not prepared the financial forecast for 2025, so it is not applicable.

(V) Remuneration of Employees, Directors and Supervisors

If the Company has a profit for the year (profit referring to pre-tax profit before distribution of employee and director remuneration), it must appropriate more than 1% as employees’ remuneration and no more than 2.5% as remuneration of the directors. If the Company still has accumulated losses, it must retain sufficient funds to cover those losses.

An amount greater than 20% of the remuneration of employees described in preceding paragraph shall be appropriated as the remuneration of entry-level employees. Employee remuneration may be paid in stock or cash, and is eligible for employees of controlling or affiliated companies who meet certain criteria. The Board of Directors is authorized to determine these criteria and the method of payment.

The Board of Directors approved the following information on the compensation of employees and the amount of remuneration of directors for 2025:

(1) The amount of remuneration to employees in cash is NT$2,615,219, the amount of remuneration in stock is NT$0, the amount of remuneration to directors is NT$5,150,142, and there is no difference in the estimated amount of expenses recognized in the year.

(2) The distribution of employee stock remuneration is NT $0, accounting for 0% of the net profit after tax for the current period. The total amount of employee remuneration is NT $2,615,219, accounting for 1.60% of the net profit after tax for the current period.

Accounting for the difference between the estimated amount of employees’ remuneration, directors’ remuneration, the basis for calculating the number of shares allotted as remuneration and the actual amount allotted if different from the estimated amount: None.
In 2024, the Company distributed employee bonuses amounting to NT$1,692,427 and directors’ remuneration amounting to NT$3,331,549 from the earnings of 2025, which is the same as the original resolution approved by the shareholders’ meeting.

(VI) Repurchase of the Company’s shares in the most recent year up to the date of printing of the annual report: None

II. Issuance of Corporate Bonds: None.

III. Issuance of Preferred Shares: None.

IV. Issuance of overseas depository receipts: None.

V. Issuance of Employee Stock Options: None.

VI. Issuance of New Shares for Mergers and Acquisitions

(I) Issuance of new shares through acquisition or transfer of shares of other companies as of the printing date of the latest annual report: None.

(II) Issuance of new shares through acquisition or transfer of shares of other companies resolved by the board of directors as of the date of the latest annual report: None.

VII. Items to be recorded in the capital utilization plan and implementation status: None

Five. Overview of Operations

I. Business Content

(I) Business Scope

1. Main business content

With over 50 years of experience, our Company is a professional manufacturer specializing in forging, precision stamping, plastic injection, assembly, and machining. We combine these processes with expertise in diverse material applications to deliver high-quality metal and composite components.

In the field of acoustic applications, the Company focuses on the development and manufacturing of high-end speaker key components. Its main products include magnetic pole (T-yoke), magnetic rings (washer), magnetic holders (U-yoke), plastic and metal pot holders, iron grids, frames, brackets, and speaker magnetic circuit assemblies. These components have been widely used in car audio systems, consumer electronics, and professional audio products, and the Company has established a certain position in the global speaker component market.

In addition to the audio industry, our products have extended into the automotive, motorcycle, and bicycle fields, producing various key components, including the shock absorber support rubber mount inner collar of the automotive suspension system (engine foot buffer), the engine oil volume control valve cover (injector housing), disc brake pistons, timing belt tensioner shafts, engine and power transmission related parts, as well as bicycle internal cable routing parts, motor yokes, automotive center console bracket and back covers, motorcycle starter motors, EV battery box fasteners, and AI server related components.

Through integrated manufacturing processes - forging, stamping, surface treatment, and assembly - the Company provides customers with one-stop manufacturing services. This approach has effectively enhanced product added value and strengthened the competitiveness and service efficiency of the overall supply chain.

2. The Company's current commodity items and their business proportions

Unit: NTD thousand

	2024		2025
	Sales amount	Proportion	Sales amount	Proportion
Precision metal processing	1,528,322	66.81%	1,518,166	64%
Plastic injection molding	189,695	8.29%	173,004	7%
Financial securities business	569,802	24.90%	674,376	29%
Total	2,287,819	100.00%	2,365,546	100%

3. New products to be developed:

Automotive parts:

Automotive interiors, engines, braking systems, central control structures, and suspension systems; with the development of automotive electronics and smart cockpits, the Company has also entered the market for car audio structural components, central control brackets, and related mechanical components.

Hardware:

Hand and power tool forging and stamping parts

Loudspeaker components:

Components and parts for automotive, consumer, and professional loudspeakers; magnetic circuit assemblies.

Motor parts:

Forged and stamped parts for industrial or consumer motors have been implemented in motorcycle starter motors, and development of automotive motor related parts continues.

Warm and hot forgings:

Forgings that require heating of the workpiece to increase the amount of deformation

Assembly parts:

Forging/stamping and electronic components assembly, providing sub-assembly or modular products.

Stamping Parts (AI Servers and 3C Applications):

Beyond established industrial and automotive uses, stamping products have expanded into AI server and laptop cooling stamped parts in recent years.

(II) Industry Overview

1. Industry Current Status and Development

Our main business is the manufacturing, processing and domestic and foreign sales of speaker magnetic conductive components and plastic injection parts. The main products are magnetic conductive poles, magnetic conductive rings, magnetic conductive seats, aluminum sound cones, iron meshes, aluminum dust covers, copper high-frequency sound enhancement covers, plastic and metal basin frames, and brackets. Speaker applications are quite wide, such as mobile appliances, personal computers, automobiles, professional audio, general household electrical products, consumer products, etc., which are all necessary products for the use of speakers.

(A) Speaker

Speakers are core acoustic components for various types of audio equipment and are widely used in car audio systems, home theater equipment, mobile devices, and professional audio systems. Based on the application market, speakers are mainly divided into three categories: "car audio system market", "home audio-video market", and "professional audio market". The Company's main source of revenue is speaker magnetic components, with car audio systems representing the largest segment, accounting for approximately 80% of speaker product sales. The Company's performance has historically been highly correlated with the business cycle and growth trends of the automotive audio market. Due to the current situation and development of the automotive audio market and the home audio-video market, the following details are provided:

a. Car audio market

Overview of the global automobile market and outlook for 2026

According to the Global Automotive Industry Platform (MarkLines), global sales of light-duty vehicles (passenger cars and light trucks) in various regions reached approximately 91.93 million units in 2025, an increase of roughly 3.18 million units compared to the 88.75 million units sold in 2024. This represents an annual growth rate of about 3.6%.

Further observation of market developments showed that growth in 2025 was primarily driven by a recovery in demand from Asia and select emerging markets, while mature markets experienced moderate growth or stabilization.

Looking ahead to 2026, according to analysis by Automotive World industry research

firm, global automotive market demand is expected to level off after a period of growth. The overall market has entered a consolidation phase, with gains and losses in regional markets largely offsetting each other, resulting in significantly slower growth momentum than in 2025. The global auto market has seen “low growth plus structural transformation.” The growth of EVs has slowed, but demand for high-end models and smart cockpits continues to rise. As smart cockpits and autonomous driving have evolved, in-car entertainment and immersive audio systems have transformed from a mere “feature” to a “core competitiveness,” driving up the number of speakers and the content per vehicle. In terms of regional performance, the Chinese market experienced a drop of about 2% to 3% due to the reduction in new energy vehicle subsidies; growth in the North American and European markets has become more conservative due to interest rates and consumer conditions; in contrast, emerging markets such as India and the Middle East still hold growth potential and are becoming a key driver of global automotive demand.

The scale and growth trends of the automotive audio market

As car production volume and car audio demand are highly correlated, the overall car audio market has historically expanded alongside growth in car production. As the industry has matured, the market structure has gradually shifted from quantity growth to one driven by value and technology. Although the growth momentum of the electric vehicle market has slowed in the short term, the high-end vehicle penetration rate continues to increase. Coupled with growing demand for smart cockpits and immersive entertainment experiences, this is driving the automotive audio system toward higher specifications, more channels, and greater integration, further enhancing car audio system value per vehicle. The role of the automotive audio system has gradually transformed from a traditional sound output device into an in-vehicle system that integrates entertainment, communications, and human-machine interaction.

According to data from Fortune Business Insights, a market research institution, the global automotive audio market was approximately USD 11.10 billion in 2025 and is expected to grow from USD 11.87 billion in 2026 to USD 20.72 billion in 2034, with a CAGR of 7.21% during the forecast period.

Furthermore, according to Grand View Research’s analysis, including in-car infotainment systems and related integrated applications resulted in a market size of approximately USD 24.00 billion in 2025. The market is projected to grow to USD 42.00 billion by 2030, representing a CAGR of over 10%.

Statistical results from different research institutions regarding the automotive audio market vary significantly, primarily due to differing market definition scope.

The Fortune Business Insights data mainly focuses on the “car audio hardware” category, including speakers, amplifiers, and other related acoustic components. Therefore, the market size has been relatively conservative, and growth momentum reflects the steady growth of vehicle production and sales and the content per vehicle increase.

In contrast, Grand View Research adopted a broader market definition, including in-car infotainment systems, digital cockpits, connected services, and software integration within its statistical scope. This resulted in a significantly larger overall market size and a higher growth rate.

This difference indicates that the automotive acoustics industry has been shifting from a traditional “hardware-oriented” approach to one focused on “system integration and experience.” The industry value chain has expanded from single acoustic components to encompass smart cockpit applications integrating software and hardware.

These statistics indicate that as smart cockpits and in-vehicle systems become increasingly integrated, the overall market size and growth momentum have significantly surpassed those of the standalone acoustics product market.

Market structure and major supplier developments

In terms of market structure, the overall industry concentration is moderately concentrated, with competition among several international brands. The main manufacturers include Harman, Bose, Panasonic, Continental, and Hyundai Mobis, resulting in a competitive landscape primarily composed of branded audio and integrated system suppliers. In 2025, the market direction was clear: Automotive audio has evolved from simple speakers/amplifiers to intelligent cockpits, immersive sound effects, software-defined vehicles (SDV), active noise cancellation, and personalized acoustic experiences.

The major suppliers' market share in 2025 is as follows:

Market share leading manufacturers: Possessing complete automotive audio system integration capability, they have been a major OEM designated supplier, achieving a combined market share of approximately 35%–40% and establishing themselves as a leader in the market. Examples: Harman, Bose, and Alpine
Mainstream system suppliers: Most companies have a Tier 1 automotive electronics supply background, with established market positions and capabilities in acoustics, cockpit electronics, and in-vehicle system integration. Examples: Panasonic, Sony, Pioneer, Denso, Visteon, Continental, Hyundai MOBIS
Emerging supply chains: Leveraging a Chinese supply chain – which offers both cost and localization advantages – the Company has grown rapidly alongside the rise of the Chinese automotive market and electric vehicle brands. Such as: Desay SV, Automotive, E-LEAD Electronic, Hangsheng Electronic, and Foryou.
High-end brand audio focuses on the luxury car market; while unit prices are high, shipment volumes are relatively low, reflecting a brand value-added oriented strategy. Such as “Bower & Wilkins, Dynaudio, Burmester, and Focal.
Niche and aftermarket manufacturers: These primarily focus on specific markets or the aftermarket modification sector and have held relatively small market shares overall. Examples: Fujitsu Ten (Eclipse), Clarion, Garmin, JL Audio, Blaupunkt, and Delphi.

Automotive Audio Product Development Trend

In recent years, automotive audio systems have gradually transformed from traditional auxiliary equipment to a key element in enhancing the overall driving and riding experience and brand value. Major car manufacturers have largely adopted well-known international audio brands such as Harman, Bowers & Wilkins, Burmester, and Bang & Olufsen to enhance product differentiation and high-end positioning.

In addition to sound quality and system functions, an audio system's output power (wattage), number of speakers, and spatial sound field technology (such as 3D and 4D immersive sound) have also become key selling points. Meanwhile, speaker magnetic circuit design, material application, and structural layout have continued to evolve alongside cabin space design and lightweight requirements.

In recent years, high-end automotive audio systems have undergone continuous upgrades, and 15 or more speakers have become standard in mid-to-high-end car models. Some models have further incorporated multi-channel immersive audio systems with over 20 speakers. For example, Chrysler and Dodge models are equipped with 19-speaker systems, while GAC Toyota models have as many as 23 speakers. This demonstrates that

overall audio configurations have evolved toward higher channel counts and greater power.

Depending on the number of speakers and system specifications, high-end automotive audio systems can be divided into three main categories: top-of-the-line flagship, high-end luxury, and mid-to-high-end mainstream. The main configurations are as follows:

Premium flagship vehicle (25+ speakers/immersive sound field)

Many of these models are equipped with over 30 speakers and incorporate immersive audio technology – as defined in our glossary – to deliver a comprehensive sound field experience.

For example, the Cadillac Celestiq is equipped with a total of 42 speakers (including interior and exterior) from the AKG audio system under the Harman group; Bentley models adopt the Naim audio system with 21 speakers and an output power of up to 2,200 watts; Land Rover Range Rover uses the Meridian Signature system, with a maximum of 35 speakers; BMW iX is equipped with the Bowers & Wilkins Diamond audio system, with up to 30 speakers combined with a 4D vibration transducer; and the Mercedes-Benz S-Class is equipped with the Burmester 4D audio system, with up to 30 speakers and integrated seat vibration function.

High-end luxury vehicles (18 to 25 units)

These car models emphasize high-resolution audio quality and spatial sound field reproduction, and are often equipped with well-known audio brands and professional tuning technology.

For example, the Acura MDX is equipped with the ELS Studio 3D audio system, featuring 16 to 25 speakers and studio-grade tuning; the Audi A8 uses the Bang & Olufsen 3D audio system with 16 speakers; the Lexus LS is equipped with the Mark Levinson audio system with 23 speakers and an output of around 1,800 watts; the Lucid Air features a 21-speaker Surreal Sound system; and the Jeep Wagoneer uses the McIntosh MX950 audio system with 19 speakers and an output of 950 watts.

Mid- to high-end models (15 to 20 speakers/mainstream upgrade segment)

Such models are now generally equipped with 15 or more speakers, which has become the market standard, and are increasingly incorporating branded audio or high-end OEM integrated systems.

For example, many Chrysler and Dodge models have used the Harman ecosystem or an Alpine audio system, and are equipped with around 19 speakers; the Volvo XC90 is equipped with a Bowers & Wilkins audio system featuring 19 speakers; GAC Toyota high-end models have used Panasonic or OEM integrated audio systems, and can be equipped with up to 23 speakers; additionally, some GM high-end models are equipped with a Bose or AKG audio system with approximately 16 speakers.

Additionally, beyond traditional branded audio systems, some car makers have adopted integrated audio systems from Tier 1 suppliers. These systems do not typically emphasize a specific brand name, but have continued to improve in acoustic performance and system integration capabilities.

Opportunities and impacts of industry development on the Company

Considering the above-mentioned industry trends, the automotive audio market has shifted from quantitative growth to qualitative upgrade. For parts and components suppliers, technological capability and process integration capability have become key

competitive factors.

On the whole, automotive audio systems have evolved from providing basic audio outputs to becoming key technologies integrating acoustic design, spatial audio, and user experience. With increasing demand for high-end vehicles, the number of speakers has continued to rise, driven by a trend toward high channel count, immersive sound field, and high power output. This has led to simultaneous growth in demand for related acoustic components and key components.

In addition, as small and medium-sized vehicle models have become the mainstream in the European and Asian markets, speaker design has moved towards miniaturization and high efficiency due to the limited space in the cabin and lightweighting requirements. To maintain sound quality, driver units need to improve magnetic circuit efficiency to reduce volume and enhance acoustic performance, driving demand growth for key magnetic circuit components such as magnetic holders.

At the same time, for safety and weight reduction, the speaker basket material has gradually transitioned from traditional metal to plasticization, and further incorporates a composite process of metal and plastic parts. This includes techniques such as metal insert injection molding technology, which has improved structural strength and process integration efficiency.

The Company possesses integrated plastic injection and metalworking process capability, enabling integrated production of magnetic components and plastic baskets. This capability has helped to meet the development needs of lightweight, miniaturization, and high performance in automotive audio systems, and continues to enhance product competitive advantage.

b. Home entertainment market

(a) Overview of the global market and outlook for 2026

With the rapid development of digital content and streaming video platforms (OTT), the global personal and home entertainment market has continued to grow. Rising consumer expectations for audio/visual entertainment quality, coupled with the increasing popularity of smart home technology and voice assistants, has shifted demand for audio equipment from traditional playback devices toward smart devices and high-fidelity audio experiences.

According to market research data, the speaker and related audio market has been gradually transforming from a hardware-oriented market into an integrated application market that combines artificial intelligence (AI), voice control, and wireless connectivity. Smart speakers, soundbars, and wireless Bluetooth audio products have become key growth drivers in the market.

Looking ahead to 2026, the home entertainment market is expected to maintain steady growth, driven by the continuous upgrading of consumer electronics and increasing smart home penetration rate. This market has continued to evolve towards greater smart functionality, wireless capabilities, and system integration.

(b) Market size and growth trends

According to data from market research institutions such as Mordor Intelligence, the global speaker and home entertainment market has seen a compound annual growth rate (CAGR) of about 7% to 8%, with the Asia-Pacific region as the fastest-growing market. The market growth has been primarily driven by the following factors:

The increasing popularity of smart speakers and voice assistants.

Smart speakers, combining artificial intelligence (AI) and voice assistants such as Alexa, Google Assistant, and Siri, have gradually become the core control interface for smart homes. Audio products have evolved from simple playback devices into entry points for smart homes, fueling continued growth in overall demand.

The trend of wireless technology and multi-device integration

The penetration rate of wireless audio (Bluetooth, Wi-Fi) products has continued to increase and is now becoming the mainstream in the market. Meanwhile, multi-room audio systems and cross-device integration applications have become increasingly popular, driving product development toward miniaturization, modularization, and system integration.

Rising demand for streaming video and entertainment

With the rapid growth of streaming platforms such as Spotify, YouTube, and Netflix, consumer demand for audio quality and immersive experiences has continued to increase. Technologies like Hi-Res Audio and Dolby Atmos have become increasingly popular, driving demand for high-end audio products.

Gaming and home entertainment enhancements

The continued expansion of demand in the esports industry and home entertainment has driven rapid growth in soundbar, subwoofer, and portable audio products, and has fostered development in the mid-to-high-end audio market.

Adoption of AI and spatial audio technologies

The gradual introduction of generative AI and spatial audio technologies into audio products has enhanced voice interaction capabilities and acoustic experience, transforming these products from hardware-oriented devices to software-hardware integrated platforms and further increasing their market added value.

Expansion of application scenarios

In addition to entertainment, audio products have also found applications in remote conferencing, work from home, and smart home control.

In sum, the growth momentum of the home entertainment market has shifted from traditional demand expansion to a structural growth model driven by technology upgrades and application integration, and this has driven product development toward high performance, miniaturization, and intelligence.

(c) Market structure and international brand development trends

The home entertainment market is generally fragmented, with a large number of competitors. These include international brands such as Sony, Panasonic, Yamaha, Harman, and Bose, as well as numerous regional and emerging brands. From 2025 to 2026, major international brands in the global home entertainment market have shifted their focus from competition based on traditional audio products to a more comprehensive model integrating artificial intelligence (AI), spatial audio, and system integration.

In terms of product technology, large consumer electronics brands such as Samsung, Sony, LG, and Panasonic have continued to strengthen the integrated applications of TV and audio. They have increasingly used soundbar products as the core of home theater systems,

combining AI sound optimization and Dolby Atmos immersive audio technology to enhance the overall audio-visual experience. Samsung still leads the global soundbar market and continues to expand its market influence through product upgrades and AI feature integration.

For acoustic brands, companies such as Bose, JBL (Harman), Yamaha, and Sonos have focused on the development of home theater and multi-room audio systems, emphasizing high-fidelity sound, wireless connectivity, and system integration capabilities. Sonos has continued to strengthen its system advantages in multi-device and multi-space integration, while JBL and Yamaha have expanded their market penetration rate through a multi-price point product strategy and cost-effective approaches.

Regarding the integration of smart homes and ecosystems, tech brands such as Amazon, Apple, and Xiaomi have continuously positioned speaker products as smart home entry devices. They have strengthened user stickiness and ecosystem integration capabilities through voice assistants (such as Alexa and Siri) and cross-device linkage. The introduction of generative AI has upgraded smart speakers from simple voice control tools to proactive home assistants.

In addition, in the high-end audio market, brands such as Bang & Olufsen, Bowers & Wilkins, and Sennheiser have continued to emphasize acoustic technology, craftsmanship, and brand value, and have introduced spatial audio and high-resolution audio technology to maintain a competitive advantage in the high-end market. Marshall has extended its product line from portable audio to the home theater market, broadening its reach by combining classic design with modern audio technology.

I. Overall, brand development in the home entertainment market has progressed in three major directions: First is integrated consumer electronics manufacturers represented by Samsung and Sony, which have strengthened overall audio-visual solutions. Second is acoustic system suppliers represented by Bose, Harman, and Sonos, which have deepened sound quality and system integration capabilities. Third is tech platform providers represented by Amazon and Apple, which have promoted smart homes and AI application integration. This development trend shows that home audio-video products have transformed from single hardware devices into integrated platforms combining acoustic technology, smart applications, and ecosystems.

(d) Industry and Product Development Trend

With the evolution of consumer demand and technology, the home entertainment industry has trended toward intelligence, miniaturization, and integration, driving simultaneous upgrades to product design and manufacturing processes. The main directions are as follows:

a. Intelligence and voice integration

Audio products have increasingly integrated artificial intelligence (AI) and voice assistants — such as ChatGPT, Alexa, and Google Assistant — becoming a key interface for smart home control and enhancing both usability and the user experience.

b. Miniaturization and high-efficiency design

Influenced by constraints in living space and product design, market demand has shifted from large speaker systems to miniaturization. This trend has been supported by improvements in magnetic circuit efficiency, which have allowed manufacturers to maintain sound quality and product performance.

c. Lightweighting and materials transition

Product structure has evolved toward lightweighting development. Speaker baskets have gradually shifted from metal to plastics or composite materials to lower weight and increase design flexibility.

d. Modularization and system integration

Product design has shifted from a single-component approach to a modular and integrated one, improving assembly efficiency and reducing overall costs while supporting multi-device connectivity and application scenario integration.

e. Brand differentiation and supply chain enhancement

Market competition has intensified. High-end brands emphasize sound quality and design value, while mid-range and entry-level brands focus on price and feature integration. Simultaneously, brand manufacturers have increased their demands on suppliers regarding technical capabilities, quality stability, and cost control, driving supply chain upgrades.

(B) Automotive forgings

The automotive industry supply chain is characterized by a high degree of exclusivity and stringent certification requirements. Once a supplier has passed a customer's quality and technology validation, long-term partnerships are typically established, resulting in relatively low supplier turnover and a stable flow of orders. As global supply chain restructuring and the "de-Sinicization" trend continue, international car manufacturers and Tier 1 suppliers have gradually transferred part of their production capacity to Southeast Asia and other regions to diversify geopolitical and tariff risk. The Company has established a production base in Vietnam to provide cost competitiveness and delivery flexibility for customers' regionalized production needs. This allows us to capitalize on order transfer opportunities and expand market penetration rate.

Due to the impact of high tariffs imposed by the U.S. on China and efforts to avoid the red supply chain, many companies in China and other countries have begun establishing operations in Vietnam to manufacture non-speaker products, including 3C products, with various components such as stamping parts and plastic injection parts. With the rapid development of artificial intelligence (AI), cloud computing, and high-speed data center technology, demand for AI server hardware has continued to grow, driving a significant increase in demand for related mechanical components and precision metal components. Compared with traditional servers, AI servers have more stringent requirements for structural strength, heat dissipation efficiency, and assembly precision due to their high computing performance and high power consumption architecture. Leveraging our established precision stamping manufacturing capabilities, we have gradually expanded into the development and production of AI server-related parts.

Relationship with midstream and downstream sectors:

The Company's main products are magnetic cones, magnetic rings, magnetic holders, aluminum cones, iron grids, aluminum dust caps, copper high-frequency booster covers, plastic and metal pot holder, brackets, and magneto-air circuit assemblies. The main upstream raw materials are steel plates, plates, aluminum plates, copper plates and engineering plastics, which are stamped, forged or injection molded into speaker components and sold to large foreign professional manufacturers of audio products, and then assembled with other electronic components into speakers and sold directly in the market in finished form, or supplied to manufacturers of communication products, information products, automotive or home appliances and speakers in component form.

Upstream raw (material) industry

The industry

Downstream applications

3. Product Development Trend

The Company has focused on cold forging and stamping technologies and, in recent years, has continuously developed towards higher value-added products, system integration, and cross-industry applications. It has actively expanded its product portfolio by incorporating emerging trends such as electric vehicles, AI servers, and smart devices.

In addition to existing speaker components, the Company has continued to develop diverse applications for automotive, motorcycle, bicycle, industrial equipment, and consumer products. It has enhanced product added value and market competitiveness through technologies

including cold, warm/hot composite forging, aluminum alloy processing, precision stamping, and plastic injection molding integration technology.

At the same time, in line with global supply chain restructuring and the trend of de-Sinicization, we have strengthened international customer service capabilities by leveraging our production base in Vietnam.

(1) Research and development of high value-added products and manufacturing process upgrades.

Facing low-price competition pressure in emerging markets, the Company continues to focus on the development of high reliability products. It has strengthened its market competitiveness by increasing technological barriers and pursuing product differentiation. In process technology, we have adopted CNC precision processing, automated magnetic circuit assembly technology, and rack plating alongside high corrosion-resistant surface treatment processes – such as zinc-nickel plating and electrophoretic coating – to effectively improve product quality and appearance, and to meet the durability and stability requirements of high-end customers.

In addition, the Company has established complete surface treatment testing and material verification capability and has actively expanded the scope of material applications from traditional low-carbon steel to a variety of materials, including medium carbon steel, high carbon steel, and aluminum materials. It has also introduced warm forging equipment to meet the manufacturing needs of high-deformation and high-strength products. Through the integrated upgrade of process and material technologies, we have not only enhanced product added value but also strengthened customized development capability.

Overall, the Company has gradually transitioned from a single-component supplier to a manufacturing service provider with modularization and system integration capabilities, increasing the unit value of its products and strengthening long-term relationships with customers.

(2) Product Development Trend: large-scale, miniaturization, and lightweight

With the growth of the global economy and the development of the automobile industry, mid- and high-end home and car audio are gradually developing in the direction of large-scale sound quality (home theater), large-scale product quantity (high-end models), and miniaturization (light, thin, short) that focuses on product size and weight. Additionally, with the rapid development of electric vehicles and mobile vehicles, products have also evolved towards high-efficiency design to improve energy efficiency and align with the energy saving and carbon reduction trend. In response to these developments, the Company has continuously refined its process and design capabilities. It has improved production efficiency and quality stability through continuous forging and stamping technologies, and simultaneously offers product solutions combining strength, lightweighting, and functional integration via the metal and plastic integration process (insert molding). Through the integration of these technologies, the Company has effectively met the product needs of diverse applications and further stimulated growth in the market for magnetic components, baskets, and related structural parts.

(3) Cross-industry forging product development (de-single industrialization)

The Company continues to promote product diversification and has actively expanded its applications beyond speakers, extending its precision forging, stamping, and processing technology to a variety of industries. The application scope includes automotive components (such as automotive interiors, engines, braking systems, central control structures, and suspension systems), industrial equipment (such as motors, pumps, and

valve components), architectural structural members (such as timber connectors), hand tools and power tools, and scooter and bicycle components.

In speaker products, in addition to existing magnetic components, we have continuously developed speaker components and magnetic circuit assembly technologies. We have also expanded into precision stamping and forging for industrial and consumer applications. Meanwhile, in response to the development trend of AI servers and the 3C industry, we have been actively developing related stamping components, extending product applications from the traditional acoustics field to the high-growth electronics and information equipment market.

(4) Plastic products

As a 100% invested subsidiary of CX Technology, Merrimack River Precision Industrial Corp. is the designated strategic partner of well-known European, American and Japanese manufacturers and has been supplying steadily. Despite the impact of the epidemic on orders from the automotive speaker industry, Merrimack River has strategically positioned itself to actively pursue and win automotive and consumer product customers, thus mitigating the impact of the epidemic and spreading the risk of single customer orders. As for automobile and motorcycle customers, Merrimack River has passed the quality certification of Hyundai Motor in Vietnam, officially delivered the goods, and has become a Tier 1 supplier of auto parts. It will continue to cooperate with this customer on the policy of local production of parts. In terms of consumer products, Merrimack River has passed the CSR (Social Enterprise Responsibility) certification BSCI, began to produce pet toy products for the top two large sellers in the United States (Walmart and Target), and expanded the development of other new pet toy market customers, thereby planning to increase revenue. In addition, Merrimack River Precision recently established a new cleanroom for touch-enabled electronic product assembly. Customers provide the circuit boards and flexible flat cables, while Merrimack River Precision performs plastic injection and assembly for application in the touch switches of household solar panel equipment. In terms of the original automotive speakers, in addition to the continuous normal shipments for existing customers, the cooperative products have included the new trend of electric vehicle speaker components in the current car market, injecting a breath of vitality into the speaker revenue.

Competitive Landscape

As the global industrial structure continues to change, manufacturing has gradually shifted from a traditional mass production model to a high value-added and system integration-oriented development. Particularly in application fields such as automotive electronics, smart speakers, and AI servers, products have been trending toward miniaturization, lightweight design, and modular design. This trend has led to increasingly stringent requirements for suppliers regarding process integration capabilities, quality stability, and delivery date management. Meanwhile, changes in US-China trade relations and the trend of supply chain diversification away from China have accelerated the relocation of production sites for international brands to Southeast Asia, driving regional manufacturing demand growth and reshaping the global supply chain layout.

Under this industry trend, the Company has leveraged its years of experience in precision metal processing to establish multi-process integration capability encompassing cold forging, warm forging, stamping, and plastic injection molding. It has gradually transformed from a traditional single-part supplier to a precision component supplier offering integrated solutions. Product applications have expanded from automotive and industrial parts to high-growth areas such as car audio systems, electronic structural components, and AI server related components, continuously enhancing product added value and market competitiveness.

In terms of operational layout, the Company has established Taiwan as its operation management center, responsible for core functions such as overall order intake, business development, customer service, and operation management. Manufacturing is carried out at production bases in Southern and Northern Vietnam, creating an "order intake and management in Taiwan, production in Vietnam" operating model. This strategy has not only improved the efficiency and flexibility of services to international customers, but also effectively responded to the trend of supply chain de-Sinicization by providing cost competitiveness and localized manufacturing services, thereby further strengthening the Company's competitive position in the global supply chain.

In addition, the Company and its subsidiaries have achieved IATF 16949, ISO 9001, and ISO 14001 international quality and environmental management system certifications, and continue to implement automated optical inspection (AOI) and digitalized process quality management to enhance product quality stability and detection efficiency. In terms of sustainable development, the Company has obtained ISO 14064-1 greenhouse gas inventory verification and has gradually promoted energy saving and carbon reduction and green manufacturing measures. These efforts aim to reduce carbon emission intensity and introduce a carbon management mechanism, aligning with international customers' requirements for ESG and net-zero emissions. Initiating carbon neutrality operations ahead of its peers and competitors.

In summary, leveraging our multi-process integration capability, regional manufacturing layout, and quality and sustainability management system, we have transformed from a traditional manufacturing-oriented enterprise into an internationally competitive precision component supplier. Under the trend of global supply chain restructuring and industrial upgrading, we possess the potential for continued growth.

(III) Technology and R&D Overview

Technology level and research and development of the business

The Company is a leading domestic manufacturer of speaker components and has long been committed to deepening and integrating core technology in areas such as precision forging, stamping, surface treatment, and assembly. We have continuously invested in research and development resources to enhance product performance and added value. With over 50 years of industry experience, we have built a complete technical and manufacturing system and are one of the few professional manufacturers with vertical integration capability for key speaker components.

In terms of product technology, the Company possesses design development and mass production capability for a wide range of components, including magnetic poles, magnetic rings, magnetic holders, aluminum alloy cones, aluminum dust caps, copper high-frequency sound booster covers, as well as plastic and metal baskets, brackets, frames, and iron grids. It also provides magnetic circuit integrated assembly service to meet customers' one-stop procurement needs and has earned recognition from internationally renowned speaker manufacturers.

With the rapid development of AI voice assistants, smart speakers, and automotive smart cockpits, speaker products have evolved towards high efficiency, miniaturization, and lightweight designs. The Company continues to optimize its magnetic circuit design, increasing magnetic flux density and energy conversion efficiency. This allows the speaker to maintain excellent sound quality even in limited spaces, and meet the application requirements of both portable devices and automotive environments. In the automotive field, to meet the space and weight requirements of electric vehicles and smart cockpits, the Company has continued to develop high-strength lightweight forged components and composite material applications. It has also enhanced the thermal resistance and reliability of its products to satisfy the long-term operation and high-reliability standards of the automotive industry.

In terms of process technology, the Company has introduced advanced forging technology from

Japan and continues to conduct industry-academia collaboration with the Metal Industries Research & Development Centre (MIRDC) and domestic universities to establish a scientific forging data analysis capability. Meanwhile, a forging simulation analysis system was introduced to perform simulated prototyping during product development, improving mold design accuracy and shortening the development timeline. In recent years, the Company has actively promoted process digitalization and smart manufacturing, gradually establishing a process parameter database and quality traceability system. Through data analysis and real-time monitoring, it has improved process stability and yield rate, reduced mold trial cost, and strengthened its overall competitive advantage.

In terms of manufacturing capabilities, the Company specializes in high-precision and high-complexity machining processes, including CNC precision turning, turn-milling compound machining, and rack plating. We have successfully developed riveting technology for magnetic poles and copper high-frequency sound booster covers, overcoming the limitations of traditional bonding methods and effectively improving product structural strength and reliability. Additionally, the Company has developed the metal and plastic integration process, providing a wide range of speaker components solutions through the combination of plastic injection molding and metal inserts, and expanding the scope of product applications.

In addition to speaker applications, the Company has extended its existing forging and precision processing technologies to the automotive, industrial equipment, and AI server related components sectors, expanding its product application market, diversifying industry risk, and enhancing capacity utilization efficiency and overall operational scale.

In terms of environmental protection and sustainable development, the Company has continuously promoted green processes. It has introduced a cyanide-free alkaline plating process and fully adopted trivalent chromium to replace hexavalent chromium plating solution. All products comply with international environmental protection regulations such as RoHS and WEEE. We have obtained ISO 14064-1 greenhouse gas verification and continue to conduct carbon emission inventory and reduction management. We have further introduced energy-saving processes and low-carbon material application, moving toward low-carbon manufacturing and green supply chain development to meet international customers' requirements for ESG.

For quality control, the Company and its subsidiaries have achieved ISO 9001 quality management system, ISO 14001 environmental management system, and IATF 16949 automotive quality management system certifications. We have continued to strengthen our quality control mechanism and introduced automated inspection equipment, such as AOI outgoing inspection, to ensure stable product quality and enhance customer satisfaction.

Operationally, the Company has established Taiwan as its operational and research and development center, in addition to a production base in Vietnam. By combining regional manufacturing advantages with a global supply chain layout, we have enhanced our cost competitiveness and delivery flexibility, strengthening our service capabilities for international customers.

Looking to the future, as speakers have become widely used in information technology, communications, consumer electronics, automotive, and smart devices, market demand continues to grow. Leveraging our long-term accumulation of technological strength and research and development foundation, we have continued to monitor industry development trends, strengthened our product innovation capabilities, increased added value, and achieved long-term stable operational growth and profitability.

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

Short-term business plan development direction

(1) Marketing Strategy

a. Supply Chain Restructuring and Optimization of Regional Division of Labor: In response to global supply chain restructuring and customers' de-Sinicization demand, the Company has completed adjustments to its operating bases: Taiwan now serves as the order receiving and operation management center, Vietnam as the main production base, and China as an office and shipping center responsible for local customer service and logistics support, enhancing overall supply chain flexibility and efficiency.

b. Product line diversification and market segmentation: in addition to existing speaker components, the Company has actively expanded into application areas such as industrial equipment, architectural hardware, bicycle components, and motor internal components to reduce reliance on a single industry and improve revenue stability.

c. High value-added product development: We are focusing on developing the following product areas:
- Precision stamping parts for automotive audio-visual systems (brackets, EMI shielding parts)
- AI servers and structural components for communication equipment.
- Aluminum forgings and lightweight products (automotive and consumer products)

d. Modular and integrated product supply: We have upgraded from a single part supply to a modular supply model, including speaker magnetic circuit assembly and driver OEM, to enhance product added value and customer stickiness.

e. International client and Tier 1 market expansion: Leveraging our Vietnamese production base to access Southeast Asian and European and American supply chains, we have actively developed automotive Tier 1 clients and expanded our international market layout.

f. Extension of Production Processes and Service Expansion: The Company has introduced surface treatment production processes, including electrophoretic coating. Beyond internal use, external processing services are also offered to improve equipment utilization and increase revenue.

(2) Production Policy and Product Development Direction

a. Smart Manufacturing and Automation Implementation: Continued automation implementation, including automation equipment, AOI outgoing inspection, and RFID systems, has reduced reliance on manual labor and improved quality stability.

b. Digitalized production management: Integrate ERP and APS systems to strengthen production scheduling, inventory control, and delivery date management capabilities.

c. Quality system and process control enhancement: IATF 16949 and ISO 9001 quality management systems have been implemented, and a process monitoring mechanism was introduced to reduce the defect rate.

d. Core process technology upgrade: Building on cold forging and stamping, we have developed cold and hot composite forging and high-precision machining technology to enhance the product technical threshold.

e. Material application and lightweighting development: To address energy-saving and electric vehicle trends, the proportion of aluminum and composite material application has increased.

f. ESG and carbon management initiatives: We continue to promote ISO 14001 and ISO 14064-1 greenhouse gas inventory, and have introduced energy saving and carbon reduction measures to move towards low-carbon and sustainable operation goals.

Long-term business plan development direction

(1) Marketing Strategy

a. Product structure upgrade (parts -> modules -> systems): The Company has gradually transformed from a single parts supplier into a module and system integration supplier, increasing overall added value.
b. High-growth industry layout: Focus on growth markets such as automotive electronics, smart cockpits, AI server, and high-end consumer electronics.
c. Design-in: Front-end design participation at the early stage of customer product development improves the technical barrier to entry and fosters long-term collaboration opportunities.
d. Enhanced global customer service capabilities: The Company has strengthened real-time service support at its overseas locations to improve customer satisfaction and response times.

(2) Production Policy and Product Development Direction

a. Integration and flexible allocation of global production capacity: Integrating our facilities in Taiwan, Vietnam, and China has improved the efficiency of production capacity allocation and supply chain resilience.
b. Smart factories and digital transformation: Promoting production digitalization and process transparency to create a highly efficient smart manufacturing system.
c. Improved high-precision process integration capability: We integrate forging, stamping, injection, and surface treatment processes to provide one-stop manufacturing services.

(3) ESG: Three Major Indicators for Sustainable Operation

a. Environmental (E)

Conduct a carbon inventory, promote energy saving and carbon reduction, and expand the application of renewable energy sources as we gradually move toward the goal of carbon neutrality.

b. Social (S)

Introduce the ISO 45001 occupational safety and health management system and strengthen corporate social responsibility according to RBA standards.

c. Governance (G)

The Company has implemented the ISO 27001 information security management system to enhance corporate governance and information security capability.

II. Market Profile and Production and Sales Overview

(I) Market analysis

Sales area of major products

Unit: NTD thousand

to	2024		2025
	Net sales	%	Net sales	%
America	721,487	31.53%	725,903	30.69%
Europe	247,500	10.82%	243,721	10.30%
Asia	1,318,832	57.65%	1,395,922	59.01%
Total	2,287,819	100.00%	2,365,546	100.00%

Market share

According to the Global Automotive Industry Platform (MarkLines) statistics for January to December 2025.

Sales performance of light-duty vehicles (cars and light trucks) in regions around the world:

Sales in North America (the U.S. and Canada) totaled approximately 18.19 million units for the year, an increase of about 450,000 units compared to the 17.74 million units sold in 2024. This represents a year-over-year growth of roughly 2.5%, and the overall market has maintained stable growth.

Sales in the Europe region (Western and Eastern Europe) totaled approximately 18.11 million units for the year, a slight increase of about 70,000 units, or 0.3%, compared to the roughly 18.04 million units sold in 2024. This indicates that market demand has stabilized.

Sales in Asia (China, Japan, and South Korea) totaled approximately 33.07 million units in 2025, an increase of about 1.64 million units, or 5.2%, compared to the 31.43 million units sold in 2024. Asia has remained the largest and fastest-growing region globally, with China as the primary driver of growth.

Sales in the South America region (Brazil and Argentina) totaled approximately 3.12 million units for the whole year, an increase of about 250,000 units compared to the 2.87 million units sold in 2024. This represents growth of about 8.8%, the highest among all regions.

Other regions reported full-year sales of approximately 19.44 million units, an increase of about 780,000 units compared to the 18.66 million units sold in 2024, representing growth of about 4.2%.

In sum, total light-duty vehicle sales in 56 countries worldwide totaled approximately 91.93 million units in 2025, an increase of about 3.18 million units, or 3.6%, compared to the 88.75 million units sold in 2024.

Overall, the global automotive market has gradually recovered from the pandemic and returned to a growth trajectory, though regional development has varied considerably. Emerging markets and China have been the primary drivers of this growth, while the European market has matured and experienced stagnation. Future market growth will increasingly rely on regional economic development and policy support, as the overall industry enters a phase of moderate growth and regional differentiation.

Market future supply and demand status and growth

Currently, speakers have become an important part of daily life and a key consumer electronics product in most areas. As global living standards have risen and smart applications have become more widespread, market demand has continued to expand, driven by technological innovation and product diversification. The overall market scale is expected to maintain a stable growth trend.

(1) Demand side:

In recent years, demand for speakers has grown steadily, primarily driven by the increasing prevalence of smart technology and AI applications. This has transformed speakers from simple playback devices into key interfaces for smart homes and human-machine interaction, thereby boosting overall market demand. At the same time, consumer electronics and home audio have been developing along two parallel paths: "miniaturization and lightweight" alongside "high-fidelity sound and multi-driver" designs, resulting in a trend of product polarization. In the automotive market, while overall growth has slowed, increasing demand for smart cockpits and high-end vehicles has driven up the value of audio systems and related component demand. In addition,

speaker technology has gradually expanded into diverse areas such as industrial equipment, bicycles, and building hardware, shifting the market from a single industry focus to a wider range of applications. Overall, market demand has shifted from quantity growth to a focus on value enhancement and system integration.

(2) Supply side:

In terms of supply, the industry has shifted from a traditional capacity-oriented model to one centered on technical capabilities and a global manufacturing footprint. With rising production costs in China and increasing geopolitical influence, supply chains have gradually shifted to Southeast Asia, establishing Taiwan as an operations and management center with production bases located overseas. In terms of process capability, suppliers need to have integrated capabilities spanning cold forging, stamping, surface treatment, injection molding, and assembly, and must improve quality and efficiency through automation. Meanwhile, market demand has shifted from single-part procurement to modularization and system integration, prompting suppliers to enhance their metal-plastic integration and assembly capabilities to increase added value. In addition, as international customers have increased their demands for quality, environmental standards, and ESG compliance, relevant certifications and carbon management capability have become essential requirements. Overall, the supply side has been shifting towards a technology focus, improved integration capabilities, and industry concentration.

Competitive Advantages

(1) Professional management team and market responsiveness

The Company has a long-standing commitment to the speaker and related component industry, demonstrating a keen understanding of market shifts and a consistent ability to identify emerging trends. We continue to develop high value-added products with diverse applications. In recent years, driven by growth in the smart speaker, automotive electronics, and diversified application markets, the Company has gradually transformed from a traditional single product supplier into a component supplier with system integration capabilities, resulting in stable revenue growth and enhanced overall profitability.

(2) A stable customer base and partnerships with international brands

The Company has established long-standing, stable partnerships with internationally renowned audio and electronics brands. Its customer base spans professional audio, consumer audio, and automotive audio sectors, demonstrating international recognition of the Company's product quality and technical expertise. This has resulted in a consistent flow of orders and fostered long-term collaborative relationships.

The customer distribution for our products is as follows:


Professional sound	Atlas, B&C, B&W, Beyma, Bosch, Eminence, Faital, Harman, JBL, JL Audio, Lavoce, MiTek, Pioneer, Tannoy, Telex
Personal and home sound	B&C, B&W, Boston Acoustics, Beyma, Dynaudio, Eminence, ESTec, Harman, JBL, JL Audio, Panasonic, Pioneer, Usher, TAD, Yamaha
Car sound	ASK, Dynaudio, ESTec, Faital, Foster, Harman, JL Audio, Mark Levinson, Onkyo, Panasonic, Pioneer, Premium Sound Solutions, Sonavox, Yamaha

(3) Process integration and mass production capability advantages

The Company possesses complete process capabilities, including cold forging, stamping, surface treatment, plastic injection, and assembly. It can also provide metal and plastic integration process technology (such as metal insert injection molding) to meet market demand for modularization and system integration. In addition, the Company has improved production efficiency and quality stability by introducing automation equipment and smart manufacturing, and has established higher industry entry barriers.

(4) Quality Management and International Certification Strengths

The Company has achieved IATF 16949, ISO 9001, and ISO 14001 international quality and environmental management system certifications and continues to implement automated testing and a quality traceability mechanism to ensure products meet the strict requirements of international automotive and electronics clients. Meanwhile, the Company actively promotes ESG and carbon emission management measures to enhance sustainable operation. The Vietnam plant became a qualified supplier for Mercedes-Benz Vietnam and obtained the Hyundai Motor SQ Mark quality certification.

Merrimack River (plastic injection molding), a reinvestment company, has obtained the BSCI certification and has become a first-tier supplier of Hyundai Motor

(5) Research and development technology and materials application capabilities

The Company continues to invest in research and development of magnetic circuit design, material application, and manufacturing process technology. It has key component independent development capability and can provide customized solutions according to customer needs. Through technical optimization and manufacturing process improvements, we have enhanced product performance and quality stability, while effectively reducing costs and strengthening our market competitiveness.

In summary, leveraging its “technology integration capability, global supply chain layout, and stable customer base,” the Company has demonstrated competitive advantages amid trends in industrial structure upgrading and supply chain restructuring, enabling it to continue expanding market share and enhancing profitability.

Favorable, unfavorable factors for development outlook and countermeasures

Favorable factors
1.	Global supply chain restructuring and regionalized production trend: Driven by geopolitical factors and changes in cost structure, international brands have accelerated the dispersion of supply chains and regionalized production. The Company has completed the layout of its production base in Vietnam, positioning it to benefit from the order transfer effect and enhance its ability to secure new orders.
2.	Stable growth in market demand and diversified applications: Development in smart speakers, automotive electronics, and AI applications has driven continued growth in demand for speakers and related components. This demand has expanded beyond consumer electronics into automotive, industrial, and other electromechanical products, contributing to a larger market scale.
3.	Complete process capability and mass production advantages: The Company possesses integrated process capabilities including cold forging, stamping, injection molding, and assembly. It has continuously introduced automation and smart manufacturing systems, effectively improving production efficiency and quality stability to meet the needs of international customers.
4.	Stable customer base and collaboration with international brands: The Company has established long-term partnerships with numerous internationally renowned speaker and electronics brands, helping to maintain stable revenue sources and enhance market credibility.
5.	Technology capabilities and product upgrade potential: Through continuous investment in research and development and material applications, the Company has a technological advantage in the field of magnetic circuits and related components and has been able to upgrade and develop products according to market demand.
Unfavorable factors	Countermeasures
1.	Raw material price fluctuations and cost pressures: Steel and metal prices have been significantly affected by volatility in the international market, putting pressure on

manufacturing costs and gross profit margin. 2. Intensified industry competition and price pressure: Manufacturers in China and Southeast Asia have continued to expand production capacity, resulting in fierce price competition and reduced overall profit margins. 3. Customer industry concentration is high (increasing automotive share): As the proportion of automotive business has increased, industry economic fluctuations may affect the company's operations. 4. Uncertainties in the global economy and end-user demand: End-user demand remains uncertain due to changes in the global economic outlook, inflation, and consumer markets.

fluctuations through process optimization and automation. 2. Promote product diversification and market diversification strategy: Beyond our existing speaker products, we are actively expanding into automotive, industrial, and other electromechanical applications to reduce reliance on a single industry. 3. Deepen process integration and modularization capabilities: Develop a metal and plastic integration process (such as metal insert injection molding) to increase added value and strengthen customer stickiness. 4. Expanding our global market presence: We continue to strengthen our production base in Vietnam and expand into Southeast Asia and other regional markets, enhancing order flexibility and market penetration rate. 5. Improve research and development capabilities and technology differentiation: Continue to invest in key process and material technology development to strengthen product competitiveness and increase barriers to entry.

(II) Key purpose and manufacturing process of main products:

Key purpose of main products

Magnetic poles, magnetic rings, copper high-frequency sound booster covers, aluminum cones, magnetic holders, aluminum dust caps, plastic injection molded holders, iron holders, iron grids, iron brackets, and magnetic air loops are used in the professional audio industry, automotive industry, electrical appliance industry, toy industry, and other related speaker components.

Production process

Magnetic pole manufacturing process

Magnetic ring manufacturing process

Aluminum cone manufacturing process

Plastic molding process

(III) Supply of major raw materials

Raw material name	Main sources	Supply situation
Plate	China Steel Corporation, Feng Hsin Steel Co., Ltd., Hunan Valin Xiangtan Iron & Steel Co., Ltd., Xingtai Iron and Steel Co., Ltd., Formosa Ha Tinh Steel Corporation	Good
Iron plate	China Steel Global Trading Corporation, Baosteel Co.,Ltd., Formosa Ha Tinh Steel Corporation, POSCO	Good
Bar steel	Jiangsu Shagang Group Huaigang SPECIAL Steel Co., Ltd.	Good
Aluminum plate	C.S. Aluminium Corporation	Good
Copper plate	China COPPER HUAZHONG COPPER Co., Ltd.	Good
Plastic granules	Sik Viet Nam Co., Ltd	Good
Iron mesh	Grille Tech Sdn. Bhd	Good

(IV) Major import and export customers

Purchase

Unit: NTD thousand

	2024				2025				As of the end of the previous quarter of 2026
Item	Name	Amount	Ratio to net purchase for the whole year [%]	Relationship with the Issuer	Name	Amount	Ratio to net purchase for the whole year [%]	Relationship with the Issuer	Name	Amount	Percentage of net sales for the year ended the previous quarter [%]	Relationship with the Issuer
1	AA	320,386	35.41%	None	AA	136,136	17.98%	None	AA	17,468	12.59%	None
2	AB	108,134	11.95%	None	AB	83,823	11.07%	None	AH	13,826	9.97%	None
3	AC	25,957	2.87%	None	AF	37,264	4.92%	None	AF	6,501	4.69%	None
4	AD	25,201	2.79%	None	AD	29,774	3.93%	None	AD	6,101	4.40%	None
5	AE	22,961	2.54%	None	AG	27,810	3.67%	None	AI	5,312	3.83%	None
	Others	402,196	44.44%	None	Others	442,249	58.42%	None	Others	89,510	64.53%	None
	Total	904,834	100.00%		Total	757,056	100.00%		Total	138,718	100.00%

The change of the Company's main purchasing customers in 2024/2025 is mainly the raw material purchasing supplier.

2. Sale

Unit: NTD thousand

	2024				2025				As of the end of the previous quarter of 2026
Item	Name	Amount	Ratio to net sales for the whole year [%]	Relations hip with the Issuer	Name	Amount	Ratio to net sales for the whole year [%]	Relations hip with the Issuer	Name	Amount	Ratio of net sales to the previous quarter of the year [%]	Relationship with the Issuer
1	A	667,749	29.19%	None	A	662,356	28.00%	None	A	152,334	24.70%	None
2	B	266,581	11.65%	None	B	258,416	10.92%	None	B	52,501	8.51%	None
3	C	149,964	6.55%	None	C	141,055	5.96%	None	C	38,828	6.29%	None
4	D	144,221	6.30%	None	D	134,839	5.70%	None	D	28,603	4.64%	None
5	E	87,452	3.82%	None	E	90,812	3.84%	None	F	27,706	4.49%	None
	Others	971,981	42.48%	None	Others	1,078,044	45.57%	None	Others	316,883	51.37%	None
	Total	2,287,948	100.00%		Total	2,365,522	100.00%		Total	616,855	100.00%

There have been no significant changes to the Company's major sales customers in 2024/2025.

3. Important Contracts: None

Six. Risk management

I. Information on Business Risks

(I) Impacts, risks, and corresponding measures associated with any significant transfer or change in shareholdings by directors or major shareholders holding more than 10% of the Company’s shares

The Company’s directors and substantial shareholders holding more than 10% of the shares have no significant transfer of shares in 2024 and 2025 as of the printing date of the annual report, and there is no significant impact or risk on the Company’s operation.

(II) Impacts, risks and countermeasures of change of management rights to the Company

There is no material change in the Company’s operating rights for fiscal 2024 and fiscal 2025 as of the date of the annual report.

(III) For the last two years and as of the date of the annual report, the Company should disclose the facts of the dispute, the amount of the subject matter, the commencement date of the litigation, the main parties involved in the litigation, and the current status of the litigation if the outcome of the litigation, non-litigation, or administrative dispute has been determined or is still pending as of the date of the annual report: None

II. Information on Operational Risks

(I) Impacts of domestic/foreign important policies and changes of laws on the financial business of the Company and countermeasures

The Company complies with national policies and laws and regulations, and the relevant units are always aware of important policy and legal changes and adjust the Company’s internal systems and business activities to ensure smooth operations.

As the Company’s major sales markets are mainly in Asia, the Americas and Europe, the Company has not experienced any significant domestic or foreign policy or legal changes that would have a material impact on the Company’s finances and business in the recent year or as of the date of the annual report. We are continuing to improve our understanding of the major foreign markets in order to better understand their impact on our business and finances.

(II) Impacts of changes in technology and industry on the financial business of the Company and countermeasures

The Company is committed to diversifying its products and customers and strengthening its marketing channels. In terms of financial operations, the Company has strengthened its cash flow management and maintained an appropriate financial structure in order to maintain stable operations and diversify operational risks, especially in view of the characteristics of the industry. In addition, the Company continues to strive for adequate supply of raw materials from upstream raw material suppliers, and through research and development and product innovation to expand the difference with competitors, so that CX continues to maintain its competitiveness and expand its market share, maintaining steady growth is an important development strategy for the Company.

(III) Impacts of change of cooperate image on the cooperate crisis management and countermeasures

The Company’s management philosophy is to build long-term partnerships with customers and the community, and to hold regular shareholders’ meetings and increase financial transparency with respect to the Company’s operations. In order to maintain a good corporate image, we have dedicated personnel to plan and respond to various unexpected situations and minimize the uncertainty of business operation.

(IV) Expected benefits, possible risks, and countermeasures for mergers and acquisitions

The Company has no ongoing mergers and acquisitions and therefore has no benefit or risk arising

from them.

(V) Expected benefits, possible risks and countermeasures for expansion of facilities

Not applicable.

(VI) Risks faced due to concentrated purchase or sales and countermeasures

The Company strives to diversify its suppliers and customers. To reduce production costs and provide localized services, it has established operations in Ho Chi Minh City, Hai Duong Province in Vietnam, and Shanghai, China. Currently, CX Vietnam is the largest production base of the Company in terms of production capacity. Although the import ratio is high, CX Vietnam is a 100% owned subsidiary of the Company, so there is no risk of interruption of supply. The Consolidated Company's group of customers includes many individual companies with independent operations scattered across different regions, not concentrated in a single customer or region. In addition, the Company continues to develop new loudspeaker customers to diversify its revenue ratio to avoid concentration in the top customers. In addition, the Consolidated Company continuously evaluates the financial position of its accounts receivable customers and purchases commercial credit insurance contracts, so its credit risk is limited.

The Company has relied on SINOSTEEL for most of its raw material purchases in the past. In order to diversify the risk, we have purchased raw materials from various suppliers. Currently, in addition to purchasing coils and plates from SINOSTEEL, we also purchase raw materials from other steel suppliers in Taiwan, such as Feng Hsin Steel Co., Ltd.

At the same time, we purchase localized raw materials from the locations of our two overseas plants, such as Baosteel Co., Ltd. in China, Xingtai Iron and Steel Corp., Ltd. in Hebei, and Jiangsu Shagang Group Co., Ltd. in Vietnam, in addition to sourcing from Vietnam CSGT. We also use steel materials produced by Formosa Plastics' Ha Tinh steel plant in Ha Tinh Province in northern central Vietnam to reduce transportation time and costs, and to move towards multiple and localized procurement methods to reduce risks.

(VII) Future R&D plans and estimated R&D expenses

R&D of forging and stamping products for aluminum alloy parts.
Cold forging tooling and process design knowledge database construction.
R&D of automatic infeed fool-proofing system.
R&D of forging and stamping products for medium carbon steel (alloy steel) parts.
Introduction of protective gas heat treatment equipment with annealing and spheroidizing function.
Expanded application of "Real-time Information System for Operation and Inspection Technology".
Introduction of automatic process quality inspection equipment.
Introduction of shaped product forging technology.
Introduction of horizontal continuous forging machine and technology
Research on tolerance of electroplated film.
Introduction of production line automation technology.
Introduction of continuous die stamping technology.
Introduction of heat treatment technology and equipment for molds
Continuous introduction of servo forging machine. Estimated R&D expenses: NTD33,039 thousand

(VIII) R&D of new industries and products

In addition to the production of loudspeaker components, the Company has also introduced a loudspeaker magneto-pneumatic circuit assembly line for partial assembly of loudspeaker units, and is actively developing forging and stamping products other than loudspeakers to expand revenue.

III. Information on Financial Risks

(I) Impact of interest rate, exchange rate fluctuation and inflation condition on the profit/loss of the Company and future countermeasures

Unit: NTD thousand

Item	2024	2025
Net operating income	2,287,818	2,365,546
Net interest expense	150,099	147,547
Net exchange gain (loss)	(72,757)	(117,773)

For the cost of capital required for operations, the Company obtained capital at a more favorable cost based on cooperation with banks and actual interest rate trends. In addition, net interest income and expenditure for 2024 and 2025 accounted for only $6.56\%$ and $6.23\%$ of annual net operating income, respectively, a level similar to that of 2024. However, rising interest costs continued to affect the Company's cost of capital and annual profit. The Company maintained close contact with banks and monitored market changes to secure preferential borrowing rates, and significant capital expenditures were carefully evaluated through comparison to utilize the lowest-cost financing tools available.

Since the purchase of finished products and raw materials of the Company is mostly denominated in US dollars, and the sales customers of the products are distributed in Europe, the United States, and most of the transactions are denominated in US dollars and a few in Euro dollars, the impact of exchange rate changes on revenue has been reduced between import and sales transactions. On the other hand, due to the increase in exchange losses caused by the appreciation of US dollars in the reinvestment of Fuxin Securities Co., Ltd., the Company has further taken the following specific measures to avoid the risk of exchange rate fluctuations:

A. Collect daily information related to exchange rate changes to fully grasp the trend of the exchange rate and decide to switch currencies or keep foreign exchange at the right time to reduce exchange risk.
Through regular foreign exchange sales and import transactions, foreign currency debts and liabilities can be offset to create a natural hedge effect to reduce foreign exchange risk.
Consult with the foreign exchange department of the bank on the hedging strategy and decide the foreign currency position according to the actual capital requirement and exchange rate to reduce the operational risk.
Execute forward exchange and SWAP transactions to hedge exchange rate risks between VND and USD.

To reduce the risk of inflation, we will establish good cooperative relationships with related suppliers or sign long-term supply contracts to ensure that raw materials are available and stable prices are obtained, and actively seek more diversified supplier resources to reduce the impact of inflation.

(II) Policies on engaging in high risk, high leverage investments, loaning funds to others, endorsement and guarantee, as well as derivative transactions, main causes of profit and loss as well as future countermeasures

Risk investments: The Company has no high-risk investments.
Highly leveraged investments: The Company has no highly leveraged investments.
Funds loaned to others

The Company's financing provided to others is handled in accordance with the Company's "Procedures for Financing Loans to Others". Up to now, the Company has loaned funds to

others as follows: None

4. Endorsement and guarantee

The Company’s endorsement and guarantee activities are handled in accordance with the Company’s “Procedures for Endorsement and Guarantee”, and the amount of endorsement and guarantee does not exceed the maximum amount.

The Company’s endorsements and guarantees are as follows.

March 31, 2026

Endorsement and guarantee company	Relationship with the Company	Amount approved by the directors	Actual amount currently utilized
CX Technology (VN) Corporation	Subsidiary	USD 12 million	-
Merrimack River Precision Industrial Corporation	Subsidiary	NTD 80 million	-
MERRIMACK RIVER PRECISION INDUSTRIAL (HD) CO.,LTD.	Subsidiary	USD 7.8 million	USD 2 million

5. Main reasons for engaging in derivative trading policies, profit or loss and countermeasures to address them in the future:

The Company did not engage in derivative transactions in 2024 and 2025 as of the date of the annual report. If necessary in the future, its purpose of trading is to hedge market risks arising from fluctuations in exchange rates and interest rates, and it is not used for arbitrage or speculative purposes. In addition to the relevant regulations issued by the competent authorities and the International Financial Reporting Standards (IFRSs), the Company strictly adheres to the “Procedures for Engaging in Derivative Transactions” established by the Company, and all transactions are for hedging purposes and not for speculative purposes.

IV. Other significant risks and countermeasures: None.

Seven. Financial Reports

I. Review of financial position and financial performance

(I) Comparative analysis of financial position

Unit: NTD thousand

Year Item	December 31, 2024	December 31, 2025	Difference
			Amount	%
Current assets	7,005,961	8,277,257	1,271,296	18%
Property, plant and equipment	621,003	509,372	(111,631)	(18)%
Intangible assets	25,834	20,045	(5,789)	(22)%
Other assets	697,782	1,088,480	390,698	56%
Total assets	8,350,580	9,895,154	1,544,574	18%
Current liabilities	4,340,955	6,102,484	1,761,529	41%
Non-current liabilities	803,781	704,053	(99,728)	(12)%
Total liabilities	5,144,736	6,806,537	1,661,801	32%
Share capital	900,000	900,000	-	0%
Capital Surplus	213,854	213,854	-	0%
Retained earnings	565,065	618,658	53,593	9%
Other equity	79,081	(39,337)	(118,418)	(150)%
Non-controlling interests	1,447,844	1,395,442	(52,402)	(4)%
Total shareholders' equity	3,205,844	3,088,617	(117,227)	(4)%
Explain the reasons for the changes in various financial ratios in the last two years (increase/decrease changes reaching 20%): 1. Decrease in intangible assets: This was due to a greater amount of amortization expense recognized in the current period than the purchase amount of the intangible assets. Additionally, exchange rate fluctuations resulted in a lower value when converting USD to NTD. 2. Increase in other assets: This was due to the purchase of corporate bonds issued by a local bank in Vietnam and an increase in trading margin for call warrants. 3. Increase in current liabilities: This increase resulted from growth in the financing business due to a strong stock market in Vietnam this year, which led to additional short-term borrowings to fund operations. 4. Increase in total liabilities: The reasons for this increase are detailed in point 3. 5. Decrease in other equity: due to exchange rate fluctuations, resulting from changes in exchange differences during statement conversion.

(II) Comparative analysis of financial performance

Unit: NTD thousand

Item	2024	2025	Increase (decrease) amount	Percentage change (%)
Operating revenues	2,287,819	2,365,546	77,727	3%
Operating costs	1,744,305	1,736,290	(8,015)	0%
Gross operating profit	543,514	629,256	85,742	16%
Operating expenses	304,786	321,030	16,244	5%
Net operating profits	230,096	346,165	116,069	50%
Non-operating income and gains	(75,848)	(28,635)	47,213	(62)%
Pre-tax profit	154,248	317,530	163,282	106%
Income tax expense	53,505	100,736	47,231	88%
Net income from continuing operations after tax	100,743	216,794	116,051	115%
Explain the reasons for the changes in various financial ratios in the last two years (increase/decrease changes reaching 20%): 1. Increase in operating profit: This increase was driven by gains in the securities industry due to a strong stock market performance in Vietnam during the second half of 2025, and a reduction in exchange loss from exchange rate hedging. 2. Decrease in non-operating expenses: This was due to the loss of influence over an affiliated enterprise previously recognized under the equity method in October 2024, resulting in no investment loss being recognized in the current year. 3. Increase in pre-tax profit: This was due to an increase in operating profit and a decrease in non-operating expenses, as detailed in points 1 and 2. 4. Increase in income tax expense: This was due to an increase in pre-tax profit, as explained in point 3. 5. Increase in profit after tax from continuing operations: This increase resulted from higher operating profit and lower non-operating expenses, as detailed in points 1 and 2.

(III) Cash flow analysis

Cash flow statement for two years
Unit: NTD thousand

Item	2024	2025	Amount of change
From operating activities	483,817	(1,031,491)	(1,515,308)
From investing activities	(106,832)	(468,252)	(361,420)
From financing activities	(369,928)	1,577,768	1,947,696
Total	7,057	78,025	70,968
Explanation of increase or decrease: 1. Cash inflow from operating activities decreased by NT$1,515,308 thousand, as strong stock market performance in Vietnam during the second half of 2025 – driven by multiple positive factors – led to increased investor margin trading and a corresponding rise in margin loans receivable. 2. Cash outflow from investment activities increased by NT$361,420 thousand due to the purchase of corporate bonds issued by a local bank in Vietnam and an increase in trading margin for call warrants during the current year. 3. Cash inflow from financing activities increased by NT$1,947,696 thousand, as the Vietnamese stock market performed strongly this year and financing business grew. This growth was supported by new short-term borrowings to fund the increased financing business activity.

Cash flow analysis for the coming year
Unit: NTD thousand

Cash balance at the beginning of the year	Estimated annual net cash flow from operating activities	Estimated annual cash outflow	Expected cash surplus (deficit)	Remedial measures for expected cash flow deficit
				Investment plan	Financing Plan
541,755	2,670,331	4,396,263	1,184,177	-	1,200,000
The financing plan will be managed by a bank consortium to form a syndicated loan group.

Impact of significant capital expenditures in the most recent year on the financial operations of the Company: None.
Recent equity investment activities: In the past year, plans have been made to add the Vietnam Hiep Phuoc plant area, with capital expenditure for land acquisition and plant construction.
Any financial distress experienced by the Company or its affiliates and impacts on the Company's financial status in the most recent fiscal year and up to the printing date of annual report: None.
Consolidated statements of operations of affiliated companies
Please refer to the Market Observation Post System, the affiliated enterprises three reports section, or the consolidated business report of affiliated enterprises.
Consolidated financial statements of affiliated enterprise
Please refer to the Market Observation Post System, the affiliated enterprises three reports section, or the consolidated business report of affiliated enterprises.
Affiliated enterprises report: Not applicable.
Private placement of securities: None.
Holding or disposal of the Company's shares by subsidiaries: None.
Other necessary supplementary information: None.
For the most recent year and up to the printing date of the annual report, the occurrence of events having material impact on shareholders' rights and interests or securities prices according to Subparagraph 2 of Paragraph 3 of Article 36 of the Securities and Exchange Act: None.
Audit Committee's Review Report:

CX Technology Corporation

Audit Committee’s Review Report

The Board of Directors has prepared and delivered the Company's 2025 Business Report, Financial Statements (including Consolidated Financial Statements) and Proposal for Appropriation of Earnings, among which the Financial Statements (including Consolidated Financial Statements) have been audited by Deloitte Taiwan's Kathy Huang and Hugh C. Chang, and a report thereon has been issued.

We have examined the above-mentioned forms and found that there is no discrepancy, and we hereby report the above in accordance with Article 219 of the Company Act.

Please proceed with the review of the above.

Yours faithfully

CX Technology Corporation

Audit Committee Convener: Lin Mei-Ling

March 12, 2026

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CX TECH — Annual Report 2025

52066_rns_2026-05-20_4cf07959-0b75-43a6-bf0b-6bf29c40baff.pdf

CX tech

CX Technology Corporation

2025

Annual Report

Letter to Shareholders

2026 Business Plan Summary

(1) Operation Policy

(2) Production and Marketing Policy

Remuneration to directors, president and vice president Remuneration to directors (including independent directors)

5. Remuneration Policy

II. Management Team

IV. Information and communication security management:

(I) Management structure:

(II) Information security policies and specific management plans

Three. Corporate Governance

1. Operation of the Board of Directors

Other Required Disclosures:

丙、Information on the assessment cycle and period, assessment scope, method and assessment content of the board of Directors' self-assessment:

3. Operating Status of the Remuneration Committee

6. Climate-related information for publicly listed companies:

1.1.1 Greenhouse gas inventory information

1.1.2 Greenhouse gas assurance information

1.2 Greenhouse gas reduction targets, strategies, and concrete action plans.

10. Internal Control System Implementation Status

Four. Financial Structure

I. Capital and Shares

Five. Overview of Operations

I. Business Content

(I) Business Scope

1. Main business content

2. The Company's current commodity items and their business proportions

3. New products to be developed:

Automotive parts:

Hardware:

(II) Industry Overview

1. Industry Current Status and Development

(A) Speaker

a. Car audio market

Overview of the global automobile market and outlook for 2026

The scale and growth trends of the automotive audio market

Market structure and major supplier developments

Automotive Audio Product Development Trend

b. Home entertainment market

(a) Overview of the global market and outlook for 2026

(b) Market size and growth trends

The trend of wireless technology and multi-device integration

Rising demand for streaming video and entertainment

Gaming and home entertainment enhancements

Adoption of AI and spatial audio technologies

Expansion of application scenarios

(c) Market structure and international brand development trends

(d) Industry and Product Development Trend

3. Product Development Trend

2. Sale

3. Important Contracts: None

4. Endorsement and guarantee

5. Main reasons for engaging in derivative trading policies, profit or loss and countermeasures to address them in the future:

IV. Other significant risks and countermeasures: None.

Seven. Financial Reports

I. Review of financial position and financial performance

(I) Comparative analysis of financial position

(II) Comparative analysis of financial performance

CX Technology Corporation

Audit Committee’s Review Report

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CX TECH Annual Report 2025