DPI
[Stock Code: 4572]

Drewloong Precision, Inc.

2025 Annual Report

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

Company website: http://www.drewloong.com.tw

Printed on March 31, 2026

Notice to readers

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

I. Names, titles, contact numbers, and e-mail addresses of the Company's spokesperson and acting spokesperson:

Name of spokesperson	:	Wen-Yu Li	Name of Acting Spokesperson	:	Cheng-Feng Pan
Job title	:	Chief Financial Officer	Job title	:	Manager of Administration Department
Telephone	:	(07) 310-1000	Telephone	:	(07) 310-1000
E-mail	:	[email protected]	E-mail	:	[email protected]

II. Addresses and telephone numbers of the head office, branch offices, and factories:

Name	Address	Telephone
Headquarters and No. 1 Plant	No. 166, Bade 2nd Road, Renwu District, Kaohsiung City	07-310-1000
Plant 2	No. 5, Lane 33, Zhunan Road, Renwu District, Kaohsiung City	07-374-5928
DREWLOONG TECHNOLOGIES, INC.	No. 3, Lane 33, Zhunan Road, Renwu District, Kaohsiung City	07-374-5928

III. Name, address, website, and telephone number of the stock transfer agency:

Name: Shares Registration Department, Taishin Securities Co., Ltd.

Address: B1, No. 96, Jianguo North Road, Sec. 1, Zhongshan District, Taipei City

Website: https://www.tssco.com.tw

TEL: (02)2504-8125

IV. Name, name, address, website, and telephone number of the certified public accountants of the financial statements in the most recent year:

CPA: Chun-Kai Wang, A-Shen Liao

Name of Firm: PwC Taiwan

Address: 22F, No. 95, Minzu 2nd Road, Xinxing District, Kaohsiung City

Website: http://www.pwc.tw

TEL: (07)237-3116

V. Names of any exchanges where the Company's securities are traded overseas and the method by which information on overseas securities may be accessed: None

VI. Website: http://www.drewloong.com.tw

Page

One. Letter to Shareholders

Two. Corporate Governance Report

I. Information on the Company's Directors, General Manager, Assistant General Managers, Deputy Assistant General Managers, and the Chiefs of All the Company's Divisions and Branch Units
4

II. Remuneration Paid to Directors, President and Vice President
10

III. Implementation of Corporate Governance
14

IV. Information on the Professional Fees of the Attesting CPAs
46

V. Information on Replacement of CPAs
46

VI. Any of The Company's Chairperson, President, or managers involved in financial or accounting affairs being employed by the auditor's firm or any of its affiliate within the recent year
46

VII. Transfer and change in pledge of shares by Directors, supervisors, managerial officers and shareholders with more than 10% ownership in the most recent year and as of the date of publication of this Annual Report
46

VIII. Relationships among the Company's top ten shareholders
47

IX. The total number of shares and the total ownership percentage held in any single investee by the Company, its Directors, managerial officers, or any companies controlled either directly or indirectly by the Company
47

Three. Capital Overview

I. Capital and Shares
48

II. Issuance of Corporate Bonds
50

III. Preferred Shares
51

IV. Global Depository Receipts
51

V. Employee Share Subscription Warrants and New Restricted Employee Shares
51

VI. Issuance of New Shares in Connection with Mergers or Acquisitions or with Acquisitions of Shares of Other Companies
51

VII. Implementation of Capital Utilization Plan
51

Four. Operational Highlights

I. Business activities
52

II. Overview of the market and production and sales
58

III. Number of employees in the last two years
62

IV. Information on environmental protection expenditure
62

V. Labor-management relations
64

VI. Cyber security management
64

VII. Material contract
66

Five. Review and Analysis of Financial Position and Financial Performance, and Risk Management

I. Financial position
67

II. Financial performance
68

III. Cash flow
69

IV. Impacts of major capital expenditures in the most recent year on financial operations
70

V. Main reasons for profit or loss, improvement plans, and investment plans for the coming year
70

VI. Risk analysis and evaluation
70

VII. Other important matters
72

Page

Six. Special Disclosures

I. Information on affiliates 73
II. Private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report 73
III. Other matters that require additional description 73
IV. Any situations listed in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report 73

One. Letter to Shareholders

Dear Shareholders,

On behalf of Drewloong Precision, Inc., I sincerely thank all shareholders for your support.

In 2025, the Company recorded total operating revenue of NT$671 million, with earnings per share of NT$3.66 before tax and NT$3.00 after tax. Revenue decreased significantly by 23.02% compared to 2024, primarily due to the rapid appreciation of the New Taiwan dollar in the first half of 2025 and the completion of certain domestic projects by the end of 2024. In addition, civil aircraft-related revenue was affected by the Boeing strike, resulting in an inventory digestion phase and a temporary slowdown in the Company's operating momentum.

However, as the Federal Aviation Administration gradually relaxes production limits on the Boeing 737 MAX, overall aircraft deliveries by Boeing are expected to grow steadily. Combined with contributions from new orders, the Company's operating momentum is expected to gradually strengthen in the coming year.

In 2025, new aircraft orders received by Boeing and Airbus continued to exceed deliveries, maintaining the recent trend of demand outpacing supply. The combined order backlog of the two companies currently exceeds 15,000 aircraft. In addition, based on their forecasts for global aircraft demand over the next 20 years (2025–2044), total demand is expected to reach more than 43,000 aircraft, indicating that the industry's long-term stable growth trajectory remains unchanged. Furthermore, since the second half of 2025, production at Boeing has gradually stabilized. Deliveries of the Boeing 737 MAX averaged nearly 40 aircraft per month in the second half of the year, compared to approximately 35 per month in the first half. Delivery momentum is expected to continue improving, demonstrating that Boeing's quality improvement initiatives are beginning to yield results and supporting a return to long-term stable growth.

Benefiting from the steady growth in aircraft deliveries by Boeing, the Company has already observed signs of increased customer order pull-ins in the first quarter of 2026. Although the pace of inventory destocking across the supply chain remains to be monitored, the gradual increase in Boeing's delivery volumes, together with the expectation that new quotations will become clearer in the second half of the year, is expected to support improving business momentum. In addition, the Company's new plant located in the Renwu Industrial Park has obtained its occupancy permit. This facility will not only be used to expand existing production capacity but will also introduce more advanced manufacturing processes to support new business development and process upgrades. Looking ahead, the new plant's advanced processes and technologies are expected to create opportunities for securing new customers and orders, which in turn contributes to the Company's long-term stable growth and marks another key milestone in its development.

I want to thank all shareholders for your attention and support of Drewloong. Our team will continue to work tirelessly to maintain our competitive edge and fulfill the expectations you have of us. While pursuing profitability, we remain committed to environmental sustainability, corporate social responsibility, and employee welfare. We strive to create value for our shareholders. Finally, thank you all. I wish you good health and every success in your future endeavors.

I. 2025 Business Results

(I) Implementation results of business plan

The Company's net operating revenue for 2025 amounted to NT$670,865 thousand (hereinafter in NT$), representing a decrease of 23.02% from NT$871,452 thousand in 2024. Net profit after tax for the period was NT$120,063 thousand, with earnings per share of NT$3.00.

Unit: NTD thousand

Year Analysis item		2025	2024	Increase (decrease) rate %
Profit or loss analysis	Net operating revenue	670,865	871,452	(23.02%)
	Operating costs	(439,138)	(443,615)	(1.01%)
	Operating gross profit	231,727	427,837	(45.84%)
	Operating expenses	(93,811)	(115,900)	(19.06%)
	Operating profit	137,916	311,937	(55.79%)
	Net Non-operating Income	8,587	43,460	(80.24%)
	Net profit before tax	146,503	355,397	(58.78%)
	income tax expense	(26,440)	(71,153)	(62.84%)
	Net profit for this period	120,063	284,244	(57.76%)
	Total comprehensive income for the period	120,063	284,244	(57.76%)

(II) Budget implementation status

The Company did not disclose its financial forecast for 2025, so it is not applicable.

(III) Financial income and expenditures and profitability analysis

Unit: NTD thousand, %

Year Analysis item			2025	2024
Financial receipts and expenditures	Operating revenue		670,865	871,452
	Operating gross profit		231,727	427,837
	Total comprehensive income for the period		120,063	284,244
Profitability	Return on assets (%)		4.33	10.61
	As a percentage of paid-in capital (%)	Operating profit	34.47	79.98
		Net profit before tax	36.62	91.12
	Net profit margin (%)		17.89	32.61
	Earnings per share after tax (NTD) - before retroactive adjustment (NTD)		3.00	7.29
	Earnings per share after tax (NTD) - after retroactive adjustment (NTD)		3.00	7.11

(IV) R&D status

Item	2025	2024
R&D expenses (A)	22,884	38,069
Net operating revenue (B)	670,865	871,452
(A)/(B)	3.41%	4.37%

II. Outline of business plan for the year

(I) Business guidelines

The Company upholds the business philosophy of "quality", "time", "price" and "service". We will continue to learn and innovate, pursue technology, and improve quality and manufacturing processes in order to continue to expand our business territory.

Quality: Strictly abide by the rules and regulations to ensure the quality of products and meet customer needs.

Time: Strictly adhere to the customer's order requirements, and deliver the goods on time and in the same quality and quantity.

Price: Introduce intelligent manufacturing, optimize production capacity, share benefits, and maintain competitive price advantage.

Service: Understand and meet customers' needs, service is our top priority.

(II) Estimated sales volume

The Company did not disclose its financial forecast for 2026, so it is not applicable.

(III) Important production and sales policies

Production policy:

We have full production capacity of aerospace components, from processing, special surface treatment to assembly, providing customers with full production process services, and introducing intelligent manufacturing to continuously refine the production process and adopt the most suitable economic batch production to fully control costs.

Sales policy:

Based on the existing business performance in the Americas and Asia, we will strengthen the development of the European market in order to accomplish the goal of customer development in the European, American and Asian markets.

III. The Company’s future development strategies

The Company operates within the international supply chain in aerospace industry as a full-service manufacturer of structural parts of aircraft, boasting comprehensive expertise in specialized manufacturing processes. It has obtained certifications from leading industry players such as Boeing and Safran. In the future, in addition to focusing on meeting customer needs, the Company will continue to actively explore global market opportunities and pursue deeper collaboration with prominent domestic and international industry leaders. Following the completion of its new plant, the Company will enhance space utilization and improve operational efficiency, while further optimizing manufacturing processes and cost control. These initiatives will strengthen the Company’s market competitiveness and differentiation, enabling it to maintain its advantages among intense global competition.

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

The Company has consistently focused on strengthening its financial structure, accumulating core technologies and capabilities. We emphasize quality, delivery times, pricing, and service to enhance our competitive advantage. Over the years, we have weathered systematic risks, which have solidified our ability to manage risks effectively, enabling us to withstand external impacts. Furthermore, in the future, we will continue to closely monitor changes in the external competition, the legal environment, and the overall business environment. We will carefully assess these changes and implement relevant measures to meet our operational needs.

Kun-Sheng Wang
Chairperson

Two. Corporate Governance Report

I. Information on the Company's Directors, General Manager, Assistant General Managers, Deputy Assistant General Managers, and the Chiefs of All the Company's Divisions and Branch Units:

(I) Information on Directors:

Directors:

March 31, 2020; Units: Shares; %

Job title	Nationality or place of registration	Name	Gender and age	Date elected	Term of office	Date first elected	Shareholding when elected		Shareholding at present		Shareholding of spouse and minor children at present		Shareholding in the name of others		Major educations and experiences	Concurrent positions in the Company and other companies at present	Spouse or relatives within second degree of kinship who are officers, Directors or supervisors of the Company
							Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage			Job title	Name	Relationship
Chairperson	R.O.C.	Hong Long Investment Co., Ltd.		2024.06.27	3	2018.07.26	6,219,708	15.95	6,379,187	15.95	-	-	-	-
	R.O.C.	Representative: Kan-Sheng Wang	Male 61~70		3	2001.06.22	5,815,808	14.91	5,966,916	14.92	-	-	-	-	Gao Qi Senior Industrial Vocational School/Department of Mechanical Engineering JUI LI ENTERPRISE CO., LTD./Manager of Aerospace Department Taiwan Aerospace Industry Association/Managing Director Taiwan Light Metals Association/Managing Director Drewloong Precision, Inc./President	Drewloong Technologies, Inc./Chairperson Hong Long Investment Co., Ltd./Chairperson	-	-	-
Director	R.O.C.	Sheng Shih Investment Co., Ltd.		2024.06.27	3	2018.07.26	1,453,926	3.73	1,418,385	3.55	-	-	-	-
	R.O.C.	Representative: Hsuan-I Chen	Male 61~70		3	2002.06.30	109,276	0.28	38,231	0.10	-	-	-	-	Dah Yung Senior Industrial Vocational School/Department of Mechanics Drewloong Precision, Inc./President	President of the Company Sheng Shi Investment Co., Ltd./Chairperson	-	-	-
Director	R.O.C.	Wen-Yu Li	Female 61~70	2024.06.27	3	2021.07.27	67,310	0.17	69,035	0.17	-	-	-	-	National Kaohsiung First University of Science and Technology/M.S. in Financial Management Drewloong Precision, Inc./CFO (Chief Finance Officer)	Chied Financial Officer and Spokesperson of the Company	-	-	-
Director	R.O.C.	Ming-Tsung Wang	Male 41~50	2024.06.27	3	2024.06.27	118,274	0.30	125,409	0.31	-	-	-	-	Master of Science in Mechanical Engineering, Kun Shan University Drewloong Precision, Inc./Deputy General Manager of Mechanical Department	Drewloong Precision, Inc./Deputy General Manager of Mechanical Department	-	-	-
Independent Director	R.O.C.	Shu-Hsien Hu	Female 61~70	2024.06.27	3	2018.07.26	-	-	-	-	-	-	-	-	Ming Chuan University/Ph.D. in Management Monterey International Corp./Special Assistant to Chairperson Aerowin Technology Corporation/Vice President	Aerowin Technology Corporation/Director and Vice President Shuz Tang Machinery Industrial Co., Ltd, / Independent Director	-	-	-

Job title	Nationality or place of registration	Name	Gender and age	Date elected	Term of office	Date first elected	Shareholding when elected		Shareholding at present		Shareholding of spouse and minor children at present		Shareholding in the name of others		Major educations and experiences	Spouse or relatives within second degree of kinship who are officers, Directors or supervisors of the Company
							Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage		Job title	Name	Relationship
Independent Director	R.O.C.	I-Tung Wan	Male 51–60	2024.06.27	3	2021.07.27	-	-	-	-	-	-	-	-	Tankang University/M.S. in Accounting
CPA of CROWN&CO.,CPAs	RSM Taiwan/Partner	-	-	-
Independent Director	R.O.C.	Chih-Peng Chen	Male 41–50	2024.06.27	3	2024.06.27	-	-	-	-	-	-	-	-	Ph.D. in Aerospace Engineering, NCKU
4DMEN Technology Co., Ltd./ Chairman	4DMEN Technology Co. Ltd./ Chairman	-	-	-

Major shareholders of corporate shareholders:

Name of corporate shareholder	Major shareholders of corporate shareholders	Shareholding percentage
Hong Long Investment Co., Ltd.	1	Kun-Sheng Wang
	2	Liang-Chi Wang
Sheng Shih Investment Co., Ltd.	1	Hsuan-I Chen
	2	Hsin-Han Chen

Major shareholders of the Company's major institutional shareholders: None
Disclosure of professional qualifications of Directors and independence of Independent Directors:

Job title	Name	Professional qualifications and experiences
Director	Hong Long Investment Co., Ltd.
Representative: Kun-Sheng Wang	■ Major experiences:
JUI LI ENTERPRISE CO., LTD./Manager of Aerospace Department
Taiwan Aerospace Industry Association/Managing Director
Taiwan Light Metals Association/Managing Director
■ With practical skills in business, operational planning, operations and management, and aerospace industry experience.
■ No circumstances under Article 30 of the Company Act.	Not applicable	None
	Sheng Shi Investment Co., Ltd.
Representative: Hsuan-I Chen	■ Major experiences:
President of the Company
■ With practical skills in business, manufacturing design, and aerospace industry experience.
■ No circumstances under Article 30 of the Company Act.		None
	Wen-Yu Li	■ Major experiences:
Manager of Finance Department and Spokesperson of the Company
■ M.S. in Financial Management, National Kaohsiung First University of Science and Technology with practical skills in corporate governance, accounting information and financial analysis.
■ No circumstances under Article 30 of the Company Act.		None
	Ming-Tsung Wang	■ Major experiences:
Deputy General Manager of Mechanical Department of the Company
■ Practical expertise in manufacturing, production design, and experience in the aerospace industry.
■ No circumstances under Article 30 of the Company Act.		None
Independent Director	Shu-Hsien Hu	■ Major experiences:
Monterey International Corp./Special Assistant to Chairperson
Aerowin Technology Corporation/Director and Vice President
Shuz Tung Machinery Industrial Co., Ltd, /Independent Director
■ Ph.D. in Management, Ming Chuan University with practical skills in business, operations management, and financial accounting.
■ No circumstances under Article 30 of the Company Act.	All Independent Directors meet the following criteria:
1. Compliance with Article 14-2 of the Securities and Exchange Act and the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" promulgated by the Financial Supervisory Commission.
2. None of the individual (or in the name of others), his/her spouse or minor children holds shares of the Company
3. No remuneration for providing business, legal, financial or accounting services to the Company or its affiliates in the most recent two years.	1
	I-Tung Wan	■ Major experiences:
Partner of RSM Taiwan
CPA of CROWN&CO., CPAs
■ M.S. in Accounting, Tamkang University, with practical skills in auditing and financial accounting.
■ No circumstances under Article 30 of the Company Act.		None

| Chih-Peng Chen | • Major experiences:
Chairman of 4DMEN Technology Co., Ltd.
• With practical expertise in aerospace industry operations, including business management, manufacturing, and maintenance.
• No circumstances under Article 30 of the Company Act. | None |
| --- | --- | --- |

Diversity and independence of the Board of Directors:

(1) Diversity of the Board of Directors:

In accordance with the "Corporate Governance Best Practice Principles" and the "Procedures for Election of Directors", the Company regulates that the composition of the Board of Directors should be determined by taking into consideration diversity, and has formulated an appropriate diversity policy with respect to its own operations, business model and development needs. The Company's diversity policy is comprised of three major aspects, including basic composition, industry experience and professional ability.

As for basic composition, in the past, due to industry-specific characteristics, the selection of board members has primarily focused on professional expertise and industry experience, resulting in the proportion of female directors falling short of the target threshold of 33%. Moving forward, the nomination process will actively prioritize candidates with relevant industry experience, with a particular emphasis on increasing female representation. Furthermore, approximately 29% of the Company's Directors are under the age of 50, 14% are between 51 and 60, and 57% are over 61. In addition, all three Independent Directors have tenures of nine years or less.

In terms of industrial experience and professional ability, the members of the Board of Directors of the Company have different professional backgrounds, as listed in (4) below:

(2) Independence of the Board of Directors:

The Company's Board of Directors consists of 7 Directors, including 3 Independent Directors, accounting for approximately 43% of all Directors. None of the board members are related to each other as a spouse or a relative within second degree of kinship. 4 of the Board members are concurrently employees of the Company, accounting for approximately 57% of the Board of Directors.

(3) The specific management objectives of the Board of Directors' diversity policy and its achievement status:

Management Objectives:	Achievement Status
33% or more of Board of Directors members are female	Not achieved
Independent Directors shall not serve for more than three consecutive terms	Achieved
The number of Independent Directors is at least one-third of the number of all Directors	Achieved

(4) The diversity and professional background of the current members of the Board of Directors of the Company are as follows:

Job title	Name of Director	Basic composition									Industry experience				Professional ability
		Nationality	Gender	With employee status	Age			Years of service as an independent Director			Aerospace	Electrical Engineering	Accounting/Auditing services	Operations management	Finance and accounting	Production planning	Sales and marketing
					41~50	51~60	61~70	less than 3 years	3~6 years	6~9 years
Chairperson	Hong Long Investment Co., Ltd. Representative: Kun-Sheng Wang	R.O.C.	Male	☑			☑				☑	☑	☑		☑		☑	☑
Director	Sheng Shi Investment Co., Ltd. Representative: Hunan-I Chen	R.O.C.	Male	☑			☑				☑	☑	☑		☑		☑	☑
	Wen-Yu Li	R.O.C.	Female	☑			☑					☑	☑	☑	☑	☑
	Ming-Tsung Wang	R.O.C.	Male	☑	☑						☑	☑					☑
Independent Director	Shu-Hsien Hu	R.O.C.	Female				☑			☑		☑	☑		☑	☑
	I-Tung Wan	R.O.C.	Male			☑			☑					☑	☑	☑
	Chih-Peng Chen	R.O.C.	Male		☑			☑				☑	☑		☑		☑	☑

(II) Information on President, vice President, assistant VP, and officers of departments and branches:
March 31, 2026; Units: Shares; %

Job title	Name	Gender	Nationality	Date appointed	Number of shares held		Shareholding of spouse and minor children		Shareholding in the name of others		Major educations and experiences	Concurrent positions in other companies at present	Spouse or a relative within second degree of kinship who is a managerial officer of the Company
					Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage			Job title	Name	Relationship
President	Hsuan-I Chen	Male	R.O.C.	2023/1/16	38,231	0.10	-	-	-	-	Dah Yung Senior Industrial Vocational School/Department of Mechanics Drewloong Precision, Inc./ President	Sheng Shi Investment Co., Ltd./Chairperson	-	-	-
Deputy General Manager	Cheng-Feng Pan	Male	R.O.C.	2017/7/1	76,831	0.19	-	-	-	-	Tunghai University/B.S. in International Trade JUI LI ENTERPRISE CO.,LTD./Manager of Finance Department	None	-	-	-
Deputy General Manager	Wen-Yu Li	Female	R.O.C.	2012/7/1	69,035	0.17	-	-	-	-	National Kaohsiung First University of Science and Technology/M.S. in Financial Management Drewloong Precision, Inc./Manager of Finance Department and Spokesperson	None	-	-
Chief Engineer	Chun-Chia Wu	Male	R.O.C.	2010/8/1	101,523	0.25	-	-	-	-	Cheng Shiu Technical College/Department of Mechanics Drewloong Precision, Inc./ Chief Engineer of R&D Department	None	-	-
Deputy General Manager	Hung-Shun Huang	Male	R.O.C.	2004/6/14	29,912	0.07	-	-	-	-	National Kaohsiung University of Applied Sciences/B.S. in Industrial Engineering Management SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD./Associate Manager of Production Technology	None	-	-
Deputy General Manager	Ching-Li Chen	Male	R.O.C.	2012/1/1	33,368	0.08	-	-	-	-	Kaohsiung Senior Industrial Vocational School/Department of Mechanics Feng Shou Machinery Co., Ltd./Plant Manager	None	-	-	-
Deputy General Manager	Ming-Tsung Wang	Male	R.O.C.	2026/1/1	125,409	0.31	-	-	-	-	Master of Science in Mechanical Engineering, Kun Shan University Drewloong Precision, Inc./ Deputy General Manager of Mechanical Department	None	-	-	-

(III) Where the Chairperson of the Board of Directors and the President or person of an equivalent post (the highest level manager) of a company are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response thereto: None

II. The remuneration paid to Directors, President and Vice President in the most recent year was as follows:

1. Remuneration for Directors (including Independent Directors)

Unit: NTD thousand: %

Job title	Name	Remuneration for Directors								A, B, C and D as a % of the net profit after tax	Remuneration for the concurrent position as an employee								A, B, C, D, E, F and G as a % of the net profit after tax	Remuneration from investees outside subsidiaries or the parent company
		Base remuneration (A)		Severance and pension (B)		Remuneration to Directors (C)		Business execution expenses (D)				Salary, bonus, allowance (E)		Severance and pension (F)		Remuneration to employees (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	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
Chairperson	Hong Long Investment Co., Ltd.	-	-	-	-	4,570	4,570	168	168	3.95	3.95	7,523	7,523	378	378	-	-	-	-	10.53	10.53	-
	Representative: Kun-Sheng Wang
Director	Sheng Shih Investment Co., Ltd.
	Representative: Hsuan-I Chen
	Wen-Yu Li
	Ming-Tsung Wang
Independent Director	Shu-Hsien Hu	1,200	1,200	-	-	-	-	126	126	1.10	1.10	-	-	-	-	-	-	-	1.10	1.10	-
	I-Tung Wan
	Chih-Peng Chen
1. Please describe the policy, system, criteria and structure for the remuneration for Independent Directors, and the correlation to the amount of remuneration in terms of their responsibilities, risks, time spent and other factors: The Company has established the "Measures for the Distribution of Directors' Remuneration", which stipulates the calculation of remuneration. In addition, the Remuneration Committee is required to make recommendations to the Board of Directors for approval after considering the extent of participation in the Company's operations and the value of contributions. In addition to the above disclosure, the remuneration received by Directors of the Company for services rendered by the Directors (e.g. as non-employee consultants, etc. to the parent company/any companies in the financial statements/investees) in the most recent year: None.

Remuneration Range for the Directors

Remuneration range for each Director of the Company	Name of Director
	Total amount of the four remunerations (A+B+C+D)		Total amount of the seven remunerations (A+B+C+D+E+F+G)
	The Company	All companies in the financial statements H	The Company	All companies in the financial statements I
Less than $1,000,000	Kun-Sheng Wang, Hsuan-I Chen, Wen-Yu Li, Ming-Tsung Wang, Shu-Hsien Hu, I-Tung Wan, Chih-Peng Chen,	Kun-Sheng Wang, Hsuan-I Chen, Wen-Yu Li, Ming-Tsung Wang, Shu-Hsien Hu, I-Tung Wan, Chih-Peng Chen,	Shu-Hsien Hu, I-Tung Wan, Chih-Peng Chen,	Shu-Hsien Hu, I-Tung Wan, Chih-Peng Chen,
$1,000,000 (inclusive) ~ $2,000,000 (exclusive)	Sheng Shi Investment Co., Ltd.	Sheng Shi Investment Co., Ltd.	Kun-Sheng Wang, Sheng Shi Investment Co., Ltd.	Kun-Sheng Wang, Sheng Shi Investment Co., Ltd.
$2,000,000 (inclusive) ~ $3,500,000 (exclusive)	Hong Long Investment Co., Ltd.	Hong Long Investment Co., Ltd.	Hong Long Investment Co., Ltd., Hsuan-I Chen, Wen-Yu Li, Ming-Tsung Wang	Hong Long Investment Co., Ltd., Hsuan-I Chen, Wen-Yu Li, Ming-Tsung Wang
$3,500,000 (inclusive) ~ $5,000,000 (exclusive)
$5,000,000 (inclusive) ~ $10,000,000 (exclusive)
$10,000,000 (inclusive) ~ $15,000,000 (exclusive)
$15,000,000 (inclusive) ~ $30,000,000 (exclusive)
$30,000,000 (inclusive) ~ $50,000,000 (exclusive)
$50,000,000 (inclusive) ~ $100,000,000 (exclusive)
More than $100,000,000
Total	9 people	9 people	9 people	9 people

2. Remuneration for President and Vice President

Unit: NTD thousand; %

Job title	Name	Salary (A)		Severance and pension (B)		Bonus and allowance (C)		Remuneration to employees (D)				A, B, C and D as a % of the net profit after tax (%)		Remuneration from investees outside subsidiaries or 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	Hsuan-I Chen	2,540	2,540	152	152	749	749	-	-	-	-	2.87	2.87	None

Remuneration Range

Remuneration range for each President and Vice President of the Company	Name of President and Vice President
	The Company	All companies in the financial statements
Less than $1,000,000	-	-
$1,000,000 (inclusive) ~ $2,000,000 (exclusive)	-	-
$2,000,000 (inclusive) ~ $3,500,000 (exclusive)	Hsuan-I Chen	Hsuan-I Chen
$3,500,000 (inclusive) ~ $5,000,000 (exclusive)	-	-
$5,000,000 (inclusive) ~ $10,000,000 (exclusive)	-	-
$10,000,000 (inclusive) ~ $15,000,000 (exclusive)	-	-
$15,000,000 (inclusive) ~ $30,000,000 (exclusive)	-	-
$30,000,000 (inclusive) ~ $50,000,000 (exclusive)	-	-
$50,000,000 (inclusive) ~ $100,000,000 (exclusive)	-	-
More than $100,000,000	-	-
Total	1 person	1 person

Names of the managerial officers who received employee remuneration and the distribution status
Unit: NTD thousand

Job title	Name	Stock amount	Cash amount	Total	Total as a % of net profit after tax
President	Hsuan-I Chen	None	None	None	None
Deputy General Manager	Cheng-Feng Pan
Deputy General Manager	Wen-Yu Li
Chief Engineer	Chun-Chia Wu
Deputy General Manager	Hung-Shun Huang
Deputy General Manager	Ching-Li Chen
Deputy General Manager	Ming-Tsung Wang

Note 1: Managerial officers of the Company are not entitled to employee compensation.

Compare and describe the total remuneration paid to Directors, President, and vice President in the most recent 2 years by the Company and all companies in the consolidated financial statements as a % of the net profit after tax and explain the policies, criteria, package, the procedures for determining remuneration and the correlation to operating performances and future risks.

(1) Analysis of total remuneration paid to Directors, President and vice President of the Company as a percentage of net profit after tax for the most recent 2 years

Unit: NTD thousand: %

Analysis item	2025		2024
	The Company	All companies in the financial statements	The Company	All companies in the financial statements
Total remuneration for Directors	6,064	6,064	12,262	12,262
Remuneration for Directors as a % of net profit after tax	5.05%	5.05%	4.31%	4.31%
Total remuneration for President and vice President	3,441	3,441	3,525	3,525
Total remuneration for President and vice President as a % of net profit after tax	2.87%	2.87%	1.24%	1.24%

(2) The policies, criteria, package, the procedures for determining remuneration and the correlation to operating performances and future risks.

The remuneration for the Company's Directors is set forth in the Company's Articles of Incorporation; the remuneration for the President is based on the position held, the responsibilities assumed and the degree of contribution to the Company, and is determined by reference to industry standards. The procedures for determining remuneration are based on the Company's Articles of Incorporation and approval authority. The remuneration for the Directors and President is determined by taking into account the future operational risks faced by the Company and the positive correlation with operating performance in order to strike a balance between sustainable management and risk.

III. Implementation of corporate governance

(I) Operations of the Board of Directors:

During the most recent year (2025) and as of the date of publication of this Annual Report, the Board of Directors convened 9 meetings and the attendance of Directors was as follows:

Job title	Name	Number of attendance in person	Number of attendance by proxy	Percentage of attendance in person (%)
Chairperson	Hong Long Investment Co., Ltd. Representative: Kun-Sheng Wang	9	-	100.00
Director	Sheng Shi Investment Co., Ltd. Representative: Hsuan-I Chen	9	-	100.00
Director	Wen-Yu Li	9	-	100.00
Director	Ming-Tsung Wang	9	-	100.00
Independent Director	Shu-Hsien Hu	9	-	100.00
Independent Director	I-Tung Wan	9	-	100.00
Independent Director	Chih-Peng Chen	9	-	100.00

Other matters to be recorded:
I. If the operations of the Board of Directors is under any of the following circumstances, the date, period, proposal content, all Independent Directors' opinions and the Company's handling of their opinions should be described:
(I) Matters listed in Article 14-3 of the Securities and Exchange Act:

Date of the Board of Directors (Period)	Proposal Details	Opinions of all Independent Directors	Drewloong's actions in response to the opinions of Independent Directors
2025.1.14 (4th meeting of the 13th Board)	1. Evaluation of the independence and suitability of the attesting CPAs for 2025 and the appointment of CPAs.	Resolution approved as it was proposed.	Handled according to resolution of the Board of Directors.
2025.3.7 (5th meeting of the 13th Board)	1. Proposal for the distribution of 2024 employee compensation and Director remuneration. 2. Proposal for capital increase from earnings and issuance of new shares. 3. Statement on the Company's internal control system 4. Proposal for the appointment of Directors to subsidiaries by the Company.	Resolution approved as it was proposed.	Handled according to resolution of the Board of Directors.
2025.12.23 (10th meeting of the 13th Board)	1. The Company proposes to dispose of the superficies right of Plant 1, together with the factory buildings and other structures, attachments, and ancillary facilities located thereon.	Resolution approved as it was proposed.	Handled according to resolution of the Board of Directors.
2026.1.30 (11th meeting of the 13th Board)	1. Evaluation of the independence and suitability of the attesting CPAs for 2026 and the appointment of CPAs. 2. Proposal for amendments to the Company's "Computerized Information System Cycle" 3. Proposal for amendments to the Company's "Payroll Cycle."	Resolution approved as it was proposed.	Handled according to resolution of the Board of Directors.
2026.3.4 (12th meeting of the 13th Board)	1. 2025 business report and financial statements. 2. Statement on the Company's internal control system.	Resolution approved as it was proposed.	Handled according to resolution of the Board of Directors.

(II) In addition to the previous matters, other board meeting resolutions that have been opposed or reserved by Independent Directors with records or written statements: None.
II. In the implementation of a Director's recusal for being an interested party in a proposal, the Director's name, the proposal content, the reason for recusal and his or her participation in voting should be stated:

Date of the Board of Directors (Period)	Proposal Details	Name of Director	Reasons for recusal and participation in voting
2025.1.14 (4th meeting of the 13th Board)	1. Approved the proposal for 2024 year-end bonus distribution for Managers.	Chairperson Kun-Sheng Wang Director Hsuan-I Chen Director Wen-Yu Li Director Ming-Tsung Wang	As required by law, the proposals were passed as proposed after the Acting Chair consulted the remaining Directors present and no objection was raised.

| 2025.3.7
(5th meeting of the 13th Board) | 1. Proposal for the distribution of 2024 employee compensation and Directors’ remuneration. | Chairperson Kun-Sheng Wang
Director Hsuan-I Chen
Director Wen-Yu Li
Director Ming-Tsung Wang | As required by law, the proposals were passed as proposed after the Acting Chair consulted the remaining Directors present and no objection was raised. |
| --- | --- | --- | --- |
| 2025.3.7
(5th meeting of the 13th Board) | 1. Proposal for the appointment of Directors to subsidiaries by the Company. | Chairperson Kun-Sheng Wang | As required by law, the proposals were passed as proposed after the Acting Chair consulted the remaining Directors present and no objection was raised. |
| 2025.3.7
(5th meeting of the 13th Board) | 1. Salary Adjustment Proposal for the Company’s Special Assistant. | Director Ming-Tsung Wang | As required by law, the proposals were passed as proposed after the Chair consulted the remaining Directors present and no objection was raised. |
| 2025.5.6
(6th meeting of the 13th Board) | 1. Proposal to establish the Company’s “Sustainability Development Committee” and to appoint its members. | Director Shu-Hsien Hu
Director I-Tung Wan
Director Chih-Peng Chen | As required by law, the proposals were passed as proposed after the Chair consulted the remaining Directors present and no objection was raised. |
| 2026.1.30
(11th meeting of the 13th Board) | 1. The Company’s 2025 managerial officer year-end bonus payment.
2. Proposal for adjustments to the compensation of the Company’s managerial officers. | Chairperson Kun-Sheng Wang
Director Hsuan-I Chen
Director Wen-Yu Li
Director Ming-Tsung Wang | As required by law, the proposals were passed as proposed after the Acting Chair consulted the remaining Directors present and no objection was raised. |
| 2026.3.4
(12th meeting of the 13th Board) | 1. Proposal for the distribution of 2025 employee compensation and Directors’ remuneration. | Chairperson Kun-Sheng Wang
Director Hsuan-I Chen
Director Wen-Yu Li
Director Ming-Tsung Wang | As required by law, the proposals were passed as proposed after the Acting Chair consulted the remaining Directors present and no objection was raised. |

III. Implementation of evaluation of the Board of Directors:

The evaluation of the Board of Directors and various functional committees for 2025 has been submitted to the Board of Directors on January 30, 2026.

Evaluation Frequency	Evaluation Period	Evaluation Scope	Evaluation Method	Evaluation Content
Implement once a year	2025/1/1~2025/12/31	Board of Directors	Self-evaluation of the Board of Directors	1. The extent of participation in the Company's operations.
2. Improvement in the quality of the Board's decision-making.
3. Composition and structure of the Board.
4. Election and continuing education of Directors.
5. Internal control
		Functional committees (Audit, Remuneration, and Sustainability Development Committee)	Self-evaluation of the functional committees	1. The extent of participation in the Company's operations.
2. Perception of the functional committee's responsibilities.
3. Improvement in the quality of the functional committee's decision-making.
4. Composition and appointment of the functional committee's members.
5. Internal control
		Individual board members	Self-evaluation of the board members	1. Alignment of the Company's objectives and mission
2. Perception of Directors' responsibilities.

IV. Evaluation of the objectives and implementation of enhancing the functions of the Board of Directors for the current year and the most recent year:

The Company established the Remuneration Committee and the Audit Committee in 2018, and the Sustainability Development Committee in 2025. These committees are composed of Independent Directors and assist the Board of Directors in the execution of its responsibilities for the purpose of enhancing the Board’s functions. In addition, material resolutions of the Board are promptly disclosed on the Market Observation Post System to enhance information transparency.

(II) Operations of the Audit Committee

The Audit Committee was established on July 26, 2018 to cover the duties of Supervisors.
The Audit Committee of the Company is established to assist the Board of Directors in fulfilling its oversight responsibilities regarding the quality and integrity of the Company’s accounting, auditing, financial reporting processes, and financial controls. The key tasks carried out in the most recent year (2025) and up to the date of publication of this annual report are summarized as follows:
(1) Audit of financial statements and accounting policies and procedures.
(2) Internal control system and related policies and procedures.
(3) The appointment, dismissal, or remuneration of the Company's CPAs.
(4) Significant acquisition or disposal of assets.
(5) Offering or issuance of securities.
(6) Appointment and dismissal of financial, accounting, or internal audit officers.
(7) Compliance of legal regulations.
(8) Risk management.
During the most recent year (2025) and as of the date of publication of this Annual Report, the Audit Committee convened 8 meetings(A) and the attendance of Independent Directors was as follows:

Title	Name	Attendance in person (B)	Percentage of attendance in person (%) (B/A)
Independent Director	Shu-Hsien Hu	8	100
Independent Director	I-Tung Wan	8	100
Independent Director	Chih-Peng Chen	8	100

Other matters to be recorded:

I. If the operations of the Audit Committee are under any of the following circumstances, the date, session, proposal content, the content of the objections, reservations or major recommendations of the Independent Directors, resolution of the Audit Committee and the Company’s handling of the Committee’s opinions should be described:

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

Date of the Audit Committee meeting (Period)	Proposal Details	Independent Directors' dissenting opinions, qualified opinions or major proposals	Resolution of the Audit Committee	The Company's actions in response to the opinions of the Audit Committee
2025.1.14 (3rd meeting of the 3rd term)	1. Appointment of the attesting CPAs for 2025 and the evaluation of their independence and suitability.	None	Approved as proposed by all committee members present without objection.	Approved as proposed by all the board members present without objection.
2025.3.7 (4th meeting of	1. 2024 business report and financial statements.	None	Approved as proposed by all	Approved as proposed by all the

| the 3rd term) | 2. Proposal for capital increase from earnings and issuance of new shares.
3. Statement on the Company's internal control system. | | committee members present without objection. | board members present without objection. |
| --- | --- | --- | --- | --- |
| 114.12.23
(8th meeting of the 3rd term) | 1. The Company proposes to dispose of the superficies right of Plant 1, together with the factory buildings and other structures, attachments, and ancillary facilities located thereon. | None | Approved as proposed by all committee members present without objection. | Approved as proposed by all the board members present without objection. |
| 2026.1.30
(9th meeting of the 3rd term) | 1. Evaluation of the independence and suitability of the attesting CPAs for 2026 and the appointment of CPAs.
2. Proposal for amendments to the Company's "Computerized Information System Cycle"
3. Proposal for amendments to the Company's "Payroll Cycle." | None | Approved as proposed by all committee members present without objection. | Approved as proposed by all the board members present without objection. |
| 2026.3.4
(10th meeting of the 3rd term) | 1. 2025 business report and financial statements.
2. Statement on the Company's internal control system. | None | Approved as proposed by all committee members present without objection. | Approved as proposed by all the board members present without objection. |

(II) Other than the matters in the preceding paragraphs, resolutions not approved by the Audit Committee but approved by two-thirds or more of all Directors: None.

II. In the implementation of an Independent Director's recusal for being an interested party in a proposal, the independent Director's name, the proposal content, the reason for recusal and his or her participation in voting should be stated: None

III. Communication between Independent Directors, internal audit officer and CPAs (major matters, methods and results of communication on the Company's financial and business conditions, etc. should be included):

(I) The Internal Audit Officer submits audit reports to the Independent Directors in the month following the completion of the audited works, and the Independent Directors have no objection.

(II) The Internal Audit Officer submits the audit plan for the following year to the Board of Directors for resolution after approval by the Audit Committee before the end of each year.

(III) The Company has provided the Independent Directors and the Internal Audit Officer with telephone numbers and email addresses for their direct contact and communication. The Company's Audit Officer sits in each Board of Directors meeting to report audit activities and consult with the Independent Directors for recommendations.

(IV) The appraisal of the effectiveness of the Company's internal control system and the statement of internal control system are submitted to the Audit Committee for review.

(V) The annual financial statements of the Company shall be submitted to the Board of Directors for resolution after approval by at least one-half of all members of the Audit Committee. The Audit Committee will discuss and communicate with the attesting CPAs in advance of the review of the financial statements regarding the audit results.

(VI) Communication between the Independent Directors and the Internal Audit Officer and the CPAs is as follows:

Date	Communication with the Internal Audit Officer	Communication with the attesting CPAs
2025/01/14	1. Report on audit work from October to November 2024.
2025/03/07	1. Report on audit work from December 2024 to January 2025.
2. The results of the internal control self-evaluation and the statement of internal control system for 2024.	1. Communication of the completion of the audit of financial statements for 2024.
2. Analysis of finance and performance
3. Information on the industrial peers
4. Regulatory updates.	No objection
2025/05/06	Report on audit work from February to March 2025.	1. Communication at the completion stage of the review of interim financial statements (Q1 2025).
2. Analysis of finance and performance
3. Information on the industrial peers	No objection
2025/08/05	Report on audit work from April to June 2025.	1. Communication at the completion stage of the review of interim financial statements (Q2 2025).
2. Analysis of finance and performance
3. Information on the industrial peers	No objection

| | 2025/11/11 | 1. Report on audit work from July to September 2025.
2. The Company’s 2026 audit plan. | 1. Communication at the completion stage of the review of interim financial statements (Q3 2025).
2. Analysis of finance and performance
3. Information on the industrial peers | No objection |
| --- | --- | --- | --- | --- |
| | 2026/01/30 | 1. Report on audit work from October to November 2025.
2. Proposal for amendments to the Company’s “Computerized Information System Cycle.”
3. Proposal for amendments to the Company’s “Payroll Cycle.” | | No objection |
| | 2026/03/04 | 1. Report on audit work from December 2025 to January 2026.
2. The results of the internal control self-evaluation and the statement of internal control system for 2025. | 1. Communication of the completion of the audit of financial statements for 2025.
2. Analysis of finance and performance
3. Information on the industrial peers
4. Regulatory updates. | No objection |
| | | | | |

(III) The state of operations of corporate governance and the differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.

Evaluation item	State of operations			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
I. Has the Company formulated and disclosed its corporate governance practice principles in accordance with the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies"?	V		The "Corporate Governance Best Practice Principles" stipulated by the Company in accordance with the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" was approved by the Board of Directors on May 9, 2018 and are available on the Market Observation Post System and the Company's website.	No material difference.
II. The Company's ownership structure and shareholders' equity
(I) Has the Company established internal operating procedures to handle shareholder recommendations, doubts, disputes and litigations, and implemented them in accordance with the procedures?	V		(I) The Company has the spokesperson and acting spokesperson system, with assistance, who handle shareholder proposals and disputes through the assistance of a stock affairs agency.	No material difference.
(II) Does the Company have a list of the major shareholders who actually control the Company and those who ultimately have control over the major shareholders?	V		(II) The Company has a good relationship with its major shareholders, and keeps track of relevant information through the assistance of the stock affairs agency.	No material difference.
(III) Has the Company established and implemented risk control and firewall mechanisms between affiliates?	V		(III) The Company's financial and business dealings with its affiliates are handled in accordance with the relevant laws and regulations and the "Regulations Governing Related Party Transactions" established by the Company.	No material difference.
(IV) Has the Company formulated internal regulations to prevent insiders from trading securities using undisclosed information on the market?	V		(IV) The Company has established the "Code of Ethical Conduct for Directors and Managerial Officers," "Ethical Corporate Management Best Practice Principles," "Internal Material Information Procedures," "Management Operations for Prevention of Insider Trading," and "Procedures for Reporting Illegal and Immoral or Unethical Conduct" to explicitly prohibit insiders from trading marketable securities using undisclosed information, and strengthen education and awareness of related laws and regulations.	No material difference.
III. Composition and responsibilities of the Board of Directors
(I) Has the Board of Directors formulated and implemented a diversity policy on membership?	V		(I) The Company has established and implemented a diversity policy with respect to the composition of the Board of Directors in the "Corporate Governance Best Practice Principles", as described in "Diversity and Independence of the Board of Directors" on Pages 7-8 of this Annual Report and the Company's website.	No material difference.

Evaluation item	State of operations			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
(II) In addition to the Remuneration Committee and the Audit Committee established in accordance with law, has the Company voluntarily set up other functional committees?	V		(II) In addition to the Remuneration Committee and the Audit Committee, the Company established a Sustainability Development Committee in May 2025 to implement its sustainability objectives and strengthen sustainability governance..	No material difference..
(III)Has the Company established Rules for Performance Evaluation of Board of Directors and its evaluation method, and conducts performance evaluation annually and regularly, and submits the results of performance evaluation to the Board of Directors for reference of individual Director's salary, remuneration, and nomination for reappointment?	V		(III) The Company has established the Rules for Performance Evaluation of the Board of Directors, which are administered by the Company's stock affairs unit, to conduct regular performance evaluations at the end of each year. The evaluation covers the Board of Directors as a whole, individual Directors and functional committees, but has not yet been applied to individual Directors' remuneration and nomination for reappointment. The results of the Company's 2025 performance evaluation were reported to the 11th meeting of the 13th Board of Directors on January 30, 2026. Please refer to Pages 15~16 of the Annual Report and the Company's website for the related evaluation methods and details.	No material difference.
(IV)Does the Company regularly evaluate the independence of the attesting CPAs?	V		(IV) Prior to the appointment of CPAs each year, the Audit Committee and Board of Directors of the Company evaluates the independence of the attesting CPAs and obtains a statement of independence from the CPAs:	No material difference.
			Evaluation item
			1. Not an employee of the Company or its affiliates.
			2. Not a Director or supervisor of the Company or its affiliates.
			3. Not a natural-person shareholder holding more than 1% of the total number of issued shares or among the top 10 natural-person shareholders in the name of itself, its spouse, minor children or others.
			4. Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship under the previous 3 paragraphs.

Evaluation item	State of operations
	Yes	No	Summary description
			5. Not a Director, supervisor, or employee of a corporate shareholder directly holding 5% or more of the total number of issued shares of the Company, or among the top 5 in shareholdings.
			6. Not a Director, supervisor, managerial officer, or shareholder holding 5% or more of the shares of a specific company or institution that has a financial or business relationship with the Company.
			7. Not a person who has a spouse or relatives of second degree of kinship in other Directors.
			8. Not a person with any of the circumstances under Article 30 of the Company Act.
			9. In compliance with the requirements of the Certified Public Accountant Act
			10. In compliance with the requirements of the general provisions of the generally accepted auditing standards.
			11. In compliance with the Code of Ethical Conduct for Certified Public Accountants.
			12. Other reference information: Statement of independent from the CPAs, audit quality indicators (AQIs).
			The Company has evaluated that both CPAs Chun-Kai Wang and A-Shen Liao from PwC Taiwan have met the Company's evaluation criteria for independence and suitability in 2026 and submitted the results to the Audit Committee and the Board of Directors for review and approval on January 30, 2026. In addition, the rotation of the Company's attesting CPAs is also governed by the relevant regulations.
IV. Does the Company as a listed company have suitable and appropriate number of corporate governance personnel and appoint a corporate governance officer to be responsible for corporate governance related matters (including but not limited to providing information necessary for Directors and supervisors to perform their business, assisting Directors and supervisors to comply with laws and regulations, conducting board meeting and shareholders' meeting related	V		The Company has appointed the Finance Department as the corporate governance unit, which is responsible for corporate governance-related business. In addition, a Corporate Governance Officer was appointed in accordance with the actual operational needs of the Company and legal requirements on May 9, 2023.	No material difference.

Evaluation item	State of operations			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
matters in accordance with law, handling company registration and alteration registration, and preparing minutes of board meetings and shareholders' meetings, etc.)?
V. Has the Company established communication channels with stakeholders (including but not limited to shareholders, employees, customers and suppliers, etc.) and a special section for stakeholders on the Company's website, and responded appropriately to important corporate social responsibility issues that are of concern to stakeholders?	V		The Company maintains open and effective channels of communication with shareholders and investors, employees, customers, suppliers, the government, and regulatory authorities, and is committed to respecting and safeguarding their legitimate rights and interests. Additionally, a dedicated section for stakeholders is available on the Company's website, with designated personnel responding to key sustainability issues of concern to stakeholders.	No material difference.
VI. Has the Company appointed a professional stock affairs agency to handle matters for shareholders' meetings?	V		The Company has appointed Taishin Securities Co., Ltd. to administer shareholders' meetings and other shareholder services.	No material difference.
VII. Information Disclosure(I) Has the Company set up a website to disclose finance and business matters and corporate governance information?	V		(I) The Company has set up a link to the Market Observation Post System and a section for disclosure of investor-related information on the Company's website, and has also disclosed information related to the Company's financial and business matters and corporate governance.	No material difference.
(II) Has the Company adopted other means of information disclosure (such as setting up an English website, appointing dedicated personnel responsible for the collection and disclosure of Company information, implementing a spokesperson system, posting the Company's earnings calls on its website, etc.)?	V		(II) The Company has designated responsible personnel for the collection and disclosure of corporate information, implemented a spokesperson system, and disclosed investor conference information on the Company's website to ensure that information that may affect the decisions of shareholders and stakeholders is promptly and appropriately disclosed.	No material difference.
(III) Does the Company publicly announce and file annual financial statements within two months after the end of the fiscal year, and the financial statements for the first, second and third quarters and the monthly operating status before the prescribed deadline?		V	(III) The Company does not publicly announce and file annual financial statements within two months after the end of the fiscal year, but publicly announce and file the financial statements for the first, second and third quarters and the monthly operating status before the prescribed deadline.	Except for the annual financial statements that have not been publicly announced and filed within two months after the end of the fiscal year, no material difference.
VIII. Does the Company have other important information that is helpful to understand its implementation of corporate governance (including but not limited to employee rights,	V		1. Employee rights and interests: The Company has always treated its employees with honesty and trust and protected their legal rights and benefits in accordance with the Labor Standards Act. 2. Employee care: The Company provides appropriate care to its	No material difference.
and the financial and business information.			financial and business information. 3. Employee and financial information: The Company is not responsible for any financial and business information or any financial and business information.

Evaluation item	State of operations
	Yes	No	Summary description
employee care, investor relations, supplier relations, stakeholder rights, continuing education of Directors and supervisors, Implementation of risk management policies and risk measurement standards, implementation of customer policies, the Company’s purchase of liability insurance for Directors and supervisors, etc.)?			employees, which is clearly defined in the relevant personnel and employee welfare committee rules and regulations, and provides necessary benefits and assistance for employees’ health checkups, group insurance, weddings, funerals, and celebrations.
3. Investor relations: A spokesperson and acting spokesperson system is in place to handle shareholder proposals and maintain a positive relationship between investors and the Company.
4. Supplier relations: The Company has established a dedicated contact point for communication with suppliers and has consistently maintained good relationships with them.
5. Stakeholder rights: Stakeholders may communicate with and advise the Company in order to protect their legitimate rights and interests.
6. Continuing education for Directors and supervisors: All Directors of the Company have professional background in the industry and practical experience in management, and the Company has arranged appropriate further education courses for the Directors and has completed the hours of further education in accordance with the regulations.
7. Implementation status of risk management policies and risk measurement standards: The Company has the established risk management policies and procedures approved by the Board of Directors to disclose the scope of risk management, organizational structure, and its implementation. Furthermore, we incorporate risk management into the Audit Committee’s responsibilities. The results of the 2025 risk assessment were presented to the 9th meeting of the 13th Board of Directors on November 11, 2025 and disclosed on the company website.
8. Implementation status of customer policy: The Company maintains stable and good relationships with customers to generate corporate profits.
9. The Company’s purchase of liability insurance for its Directors. The Company has taken out liability insurance for its Directors. The 2026 liability insurance for Directors and key employees was reported to the 11th meeting of the 13th Board of Directors on January 30, 2026.
IX. Please describe the improvements that have been made in response to the corporate governance evaluation results issued by the Corporate Governance Center of the Taiwan Stock Exchange in the most recent year, and propose priorities and measures for those not yet improved:
(1) Improvements Made: The Audit Committee has been designated as the supervisory unit for risk management. The Company has implemented the ISO 27001 Information Security Management System and obtained ISO 14001 Environmental Management System certification.

Evaluation item	State of operations			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
(2) Priority Areas for Enhancement and Measures: Moving forward, it’s our priority to improve information transparency and promote sustainable development. Efforts will continue in alignment with applicable regulations and corporate governance guidelines. Additionally, the Company will take into consideration industry characteristics and practical operational needs to strengthen areas that have not yet been fully achieved.

(IV) The composition and operations of the Remuneration Committee:

Information on the members of the Remuneration Committee

Criteria Name		Professional qualifications and experiences	Status of independence	Number of other public companies in which the individual is concurrently serving as a remuneration committee member
Independent Director (Convener)	Shu-Hsien Hu	The Remuneration Committee of the Company consists of all three Independent Directors. Please refer to Pages 6-7 of the Annual Report for information on the professional qualifications and independence of the Directors.	1
Independent Director	I-Tung Wan			None
Independent Director	Chih-Peng Chen			None

Information on the operations of the Remuneration Committee:

(1) There are 3 members in the Remuneration Committee of the Company.
(2) The term of office of the current Remuneration Committee members: August 6, 2024 to June 26, 2027. In the most recent year (2025) and as of the date of publication of this Annual Report, the Remuneration Committee convened 4 meetings and the qualifications and attendance of the members are as follows:

Job title	Name	Number of attendance in person	Number of attendance by proxy	Percentage of attendance in percent (%)
Convener	Shu-Hsien Hu	4	—	100%
Committee member	I-Tung Wan	4	—	100%
Committee member	Chih-Peng Chen	4	—	100%
Other matters to be recorded: I. If the Board of Directors does not adopt or amend the recommendations of the Remuneration Committee, please state the date, session, proposal contents, resolution of the Board, and its handling of the Committee’s opinions (if the salary and remuneration approved by the Board of Directors are better than the recommendation proposed by the Remuneration Committee, the difference and reasons should be stated): None. II. For the resolutions by the Remuneration Committee. If any members have objections or reservations with records or written statements, the date, session, proposal contents, the opinions of all members, its handling of the members’ opinions should be stated: None. III. The date, session, proposal content, resolution of the meetings of the Remuneration Committee during the most recent year, and the Company’s handling of the Remuneration Committee’s opinions:
Remuneration Committee Meeting Date (Period)	Proposal Details		Remuneration Committee Resolution	The Company’s handling of the Remuneration Committee’s opinions
2025.1.14 (2nd meeting of the 4th term)	1. The Company’s 2024 managerial officer year-end bonus payment.		Approved as proposed by all committee members present without objection.	Approved as proposed by all the board members present without objection.

| | 2025.3.7
(3rd meeting of the 4th term) | 1. Distribution of remuneration to employees and remuneration to Directors for 2024.
2. Salary adjustment proposal for the Company’s special assistant. | Approved as proposed by all committee members present without objection. | Approved as proposed by all the board members present without objection. |
| --- | --- | --- | --- | --- |
| | 2026.1.30
(4^{th} meeting of the 4th term) | 1. The Company’s 2025 managerial officer year-end bonus payment.
2. Proposal for adjustments to the compensation of the Company’s managerial officers. | Approved as proposed by all committee members present without objection. | Approved as proposed by all the board members present without objection. |
| | 2026.3.4
(5th meeting of the 4th term) | 1. Proposal for the distribution of 2025 employee compensation and Directors’ remuneration. | Approved as proposed by all committee members present without objection. | Approved as proposed by all the board members present without objection. |

Information on the members and operations of the Nomination Committee: The Company has not established a Nomination Committee.

(V) 1. The implementation status of sustainable development and the differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.

Promotion item	Implementation status			The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
		Yes	No		Summary description
I.	Has the Company established a governance structure to promote sustainable development, and set up a dedicated (part-time) unit to promote sustainable development, which is authorized by the Board of Directors to be handled by senior management, and the supervision situation of the Board of Directors?	V		1. On May 6, 2025, the Board of Directors approved the “Organization Charter of the Sustainability Development Committee” and established the Sustainability Development Committee as the supervisory and promotion unit for the Company’s sustainable development. The Management Department serves as a designated executing unit on a concurrent basis, responsible for: (1) formulating, promoting, and strengthening the Company’s sustainability policies, annual plans, and strategies; (2) reviewing, tracking, and revising the implementation and effectiveness of sustainability initiatives; (3) overseeing sustainability information disclosure and reviewing the sustainability report; and (4) supervising compliance with the Company’s sustainability code of practice and other sustainability-related matters resolved by the Board. The Committee reports annually to the Board on its implementation status.2. In August 2025, the Sustainability Development Committee held its first meeting, at which the 2024 Sustainability Report was approved and progress on the Q2 greenhouse gas inventory was reported. In November, the second meeting was held to report on the annual implementation status of sustainability initiatives and progress on the Q3 greenhouse gas inventory. The Board of Directors reviewed the progress of relevant strategies and, where necessary, provided guidance and recommendations for adjustments	No material difference.
II.	Does the Company, in accordance with the principle of materiality, conduct risk assessments on environmental, social and corporate governance issues related to the Company's operations, and formulate relevant risk management policies or strategies?	V		1. The Company has established the "Risk Management Procedures," which have been approved by the Board of Directors as the Company’s highest guiding principles for risk management. The Audit Committee is responsible for formulating and revising these procedures and related policies, and reviews the implementation status of risk management at least once a year, reporting the results to the Board of Directors.2. Each responsible department within the Company identifies potential risks across the environmental, social, and governance (ESG) aspects and establishes appropriate measurement methods as the basis for implementing risk management. For more details, please refer to the materiality analysis and related information in the Company’s Sustainability Report.	No material difference.
III.	Environmental issues (I) Has the Company set up an appropriate environmental management system based on the characteristics of its industry?	V		The Company has established plant management rules and regulations to comply with the requirements of the competent authorities and relevant laws and regulations. Furthermore, the Company has implemented an environmental management system to promote environmental management activities and effectively ensure environmental safety. In 2024, the Company obtained ISO 14001 (Environmental Management) certification.	No material difference.
(II)	Is the Company committed to improving the efficiency of resource utilization and using recycled materials with low impact on the environment?	V		We are committed to promoting the reuse of resources and have entrusted a legal vendor to recycle the waste. The iron scraps and waste materials generated during the Company’s production processes are classified according to material type and handled by licensed and qualified waste disposal service providers. The Company also monitors and reviews the relevant certifications and documentation of these service providers to ensure lawful and compliant execution. This practice effectively reduces environmental pollution. For further details, please refer to the analysis and explanation of the material topic “Waste Management” in the Company’s Sustainability Report.	No material difference.

Promotion item	Implementation status							The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description

(III) Does the Company evaluate the potential risks and opportunities of climate change to the Company now and in the future, and take countermeasures to respond to climate related issues?	V	In response to global climate change and the greenhouse effect, the Company has initiated an evaluation of the potential risks and opportunities that climate change presents to our business, both now and in the future. This proactive approach allows us to formulate appropriate countermeasures to address climate-related issues. For further details, please refer to Pages 34-39 of this annual report.						No material difference.
(IV) Does the Company make statistics on greenhouse gas emissions, water consumption and total weight of waste for the past two years, and formulate policies for energy conservation and carbon reduction, greenhouse gas reduction, water consumption reduction or other waste management?	V	The Administration Department of the Company has dedicated personnel to compile statistics on environmental impacts as follows (covering the Company's production sites, excluding its subsidiaries.):						No material difference.
		Category	2025		2024
				Usage	Intensity (Revenue in millions)	Usage	Intensity (Revenue in millions)
		Electricity consumption/kWh		5,013,900	7,473.78	5,766,000	6,616.54
		Water consumption/m3		32,515	48.47	36,610	42.01
		CO2 emissions/to n	Scope I	101	0.15	117	0.13
			Scope II	2,376	3.54	2,848	3.27
			Scope III	651	0.97	690	0.79
Waste/ton		193.57		0.29	131.50	0.15	Non-hazardous waste

Promotion item	Implementation status			The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
			In response to climate change, the Company is committed to sustainable development and actively supports national policies by promoting electricity conservation and renewable energy to reduce resource consumption and improve energy efficiency.A:Greenhouse Gas Reduction Strategies:(1) Install solar panels on the rooftops of the new plant to increase the proportion of self-generated electricity.(2) Prioritize high-efficiency, low-energy consumption, and energy-saving equipment when replacing outdated equipment.(3) Improve the efficiency of air-conditioning systems.(4) Implementation of high-efficiency energy-saving lighting across the entire facility.B: Water Reduction Strategies:(1) Strengthen inspection and maintenance of water pipelines to prevent leakage and water waste.(2) Reduce unnecessary water and electricity consumption by employees and enhance awareness of energy conservation and water-saving practices.C:Waste Reduction Strategies:Aluminum scrap is recycled and reused to realize circular economy benefits and reduce waste generation.
IV. Social issues(I)Has the company formulated relevant management policies and procedures in accordance with relevant laws and regulations as well as the International Bill of Human Rights?	V		The Company is committed to fulfilling its corporate social responsibility by safeguarding the fundamental human rights of all employees, customers, and stakeholders. We endorse and support internationally recognized human rights standards such as the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. To prevent any infringement or violation of human rights, we have established the "Human Rights Protection Policy and Management Plan" applicable to our Company. We are committed to upholding the fundamental human rights of all employees, customers, and stakeholders, by eliminating all forms of discrimination, ensuring fairness in the workplace, prohibiting child labor, protecting labor rights, and fostering a friendly and inclusive work environment. Through these efforts, Drewloong aims to build a strong reputation and enhance our competitive advantage.	No material difference.
(II)If the Company has formulated and implemented reasonable employee welfare measures (including remuneration, vacation and other benefits, etc.), and appropriately reflects operating performance or results in employee remuneration?	V		1. In addition to the general benefits such as labor insurance, health insurance, group insurance, and pension payment, the Company also provides benefits such as annual health check-ups, Family Day activities, wedding gift, funeral subsidy, maternity gift, birthday gift, three festivals gift, employee travel subsidy, injury and illness compensation, employee new home benefit, and employee stock option system, The Company also provides remuneration to employees depending on operating conditions.2. The Company provides employees with special leave, personal leave, general injury and illness leave, official leave, occupational injury and illness leave, maternity leave, maternity examination leave, paternity leave, marriage leave, funeral leave, physiological leave, family care leave, etc. in accordance with various regulations and rules, and the implementation details are clearly stated in the work rules.3. The Company is committed to gender equality and diversity in the workplace. In 2025, the average employee gender ratio of the Company and its subsidiaries was 76% male and 24% female. The employee composition by	No material difference.
			the Company is 100% male and 100% female. The Company is committed to gender equality and diversity in the workplace. In 2025, the average employee gender ratio of the Company and its subsidiaries was 76% male and 24% female. The employee composition by
the Company is 100% male and 100% female.			the Company is 100% male and 100% female. The Company is committed to gender equality and diversity in the workplace. In 2025, the average employee gender ratio of the Company and its subsidiaries was 76% male and 24% female. The employee composition by

Promotion item	Implementation status	The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
Yes	No	Summary description
(III) Does the Company provide employees with a safe and healthy working environment, and related education?	V
4. The Company’s operating performance is reflected in employee compensation. In accordance with Article 25 of the Company’s Articles of Incorporation, the Company shall appropriate 1% to 10% of annual profits as employee compensation, of which no less than 70% shall be allocated to non-managerial employees. In addition, no more than 3% of annual profits may be appropriated as directors’ remuneration. However, if the Company has accumulated losses, such losses shall first be offset.
5. In the beginning of 2026, the salary increase of each job level was about 3.90%.
1. The Company conducts regular employee health checkups and labor safety and health meetings every year. In addition, the Company has established an employee welfare committee in accordance with the law and regularly holds employee trips, group meals or recreational activities to protect the physical and mental health of employees.
2. The Company’s protection measures for the working environment and personal safety of employees are as follows:	No material difference.
Item	Contents
Access security	1. Our building is equipped with a strict access control system during daytime and nighttime.
2. The Company has contracted with a security company to maintain office and factory security at night and on holidays.
Maintenance and inspection of all equipment	1. According to the regulations for public safety inspection of buildings and reporting, we appoint an outside professional company to conduct public safety inspection every two years.
2. In accordance with the Occupational Safety and Health Act and the Company’s Work Rules for Labor Safety and Health, the Company establishes an automatic occupational safety and health inspection plan, such as monthly inspection and maintenance of elevators, quarterly maintenance of drinking fountains, annual maintenance and inspection of high and low voltage electrical equipment, air conditioning, fire-fighting apparatus and other equipment, and regular maintenance of automobiles according to mileage.
Fire safety	In accordance with the provisions of the Fire Services Act, the fire protection system is set up and regularly inspected and reported in accordance with the law; the employees conduct fire protection training every six months and emergency preparedness and response drills every year.

Promotion item	Implementation status
	Yes	No	Summary description
		Disaster prevention measures and response	1. The Company has established "Management Rules for Natural Disaster Emergency", "Procedures for Business Continuity and System Risk Assessment", "Work Rules for Safety and Health", and other procedures for disaster prevention, rescue and accident notification, which clearly regulate the responsibilities and tasks of the Company's personnel at all levels in advance and afterwards in response to major events such as natural disasters, major injuries and other major emergencies.
2. In order to maintain the safety and health of employees and promote safety and health business, the Company has two officers of safety and health business, one safety and health administrator, several leaders of various operations, fire prevention administrators, and first aid personnel, and regular training.
3. Promote safety and health precautions and safety operating standards for employees to follow on a regular or irregular basis.
		Physiological hygiene	1. Health checkups: The company provides regular annual health checkups for employees, special health checkups for specific employees and psychological counseling and assessment, and psychological consultation with medical doctors according to individual's preference.
2. Workplace hygiene: A total ban on smoking is enforced at the workplace while health seminars are held, and office environment is regularly cleaned and disinfected.
3. Employ professional medical specialists to provide on-site services and appoint qualified nursing personnel to provide medical consultation and emergency care services.
4. Provide necessary safety protection for employees, such as safety shoes, goggles, respiratory protection, ear plugs (muffs), cut-resistant gloves, etc., to maintain employee safety and health.
5. Conduct semi-annual testing of the operating environment in accordance with the Occupational Safety and Health Act.
		Mental health	1. Education and training: Provide courses on stress management, communication skills, and creativity examinations, and provide employees with psychological adjustment, seminars on strengthening knowledge and E education training.
2. Sexual harassment prevention: Establish rules and regulations for complaints and penalties.

Promotion item	Implementation status				The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
			Insurance and medical assistance	1. Take out labor insurance (including occupational accident insurance) and health insurance in accordance with the law, and negotiate with insurance companies to provide employees and their dependents with preferential rates for accident insurance, accidental medical insurance, cancer insurance, and other mechanisms. 2. The Company insures all employees with duty accident insurance, for those who are disabled or die on duty, the insurance claims will be used to help employees or their heirs, etc. 3. Provide relief to employees in case of illness or death and provide relief to employees' spouses and children in case of injury or death.
			3. In 2025, the Group recorded a total of five occupational injury cases, representing 1.77% of total employees. The incidents mainly occurred in manufacturing sites and involved work-related injuries. Upon occurrence of an accident, relevant personnel and departments were promptly contacted to provide assistance and arrange medical treatment. After investigation, incidents are analyzed based on potential damage and occupational safety considerations, including direct causes (exposure to energy sources, hazardous substances, or harmful materials), indirect causes (unsafe conditions or unsafe behaviors), and root causes (underlying management deficiencies). Preventive measures are then implemented to improve workplace safety and prevent recurrence. In addition, the occupational health and safety unit conducts hazard identification and risk assessment across work environments to effectively prevent occupational accidents and safeguard employee health and safety. Appropriate preventive measures and control methods are implemented following the hierarchy of controls—elimination, substitution, engineering controls, administrative controls, and personal protective equipment—to effectively manage risks and improve workplace safety. 4. In 2025, there were no fires or related casualties within the Group.
(IV) Has the Company established an effective career development training program for employees?	V		In order to foster quality human resources and improve work standards, the Company establishes orientation and on-the-job training programs based on the annual training plan. On-the-job training is further divided into internal and external training to support employees' continuous learning and development, and to cultivate their core competencies.		No material difference.
(V) Does the Company comply with relevant laws and regulations and international standards regarding customer health and safety, customer privacy, marketing and labeling of products and services, and establish relevant customer rights protection policies and complaint procedures?	V		All of our products are issued with a COC before shipment to ensure that the quality and labeling of our products meet the needs of our customers. In the ISO standard book, there are special chapters on "Corrective and Preventive Measures" and "Customer Satisfaction" to specify the procedures for handling customer complaints, and we regularly monitor and analyze the data and evaluation information received from our customers to maintain customer satisfaction.		No material difference.

Promotion item	Implementation status			The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
(VI) Has the Company formulated supplier management policies that require suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights, and monitor their implementation?		V	The Company has established a "Procurement Policy" and "Procurement Operation Management Procedures" as the basis for selecting qualified and outstanding suppliers. Suppliers are required to sign a Supplier Social Responsibility Commitment Letter to ensure their continued alignment with the Company's standards. In addition, the supplier management unit conducts supplier questionnaires and regular evaluations, compiles supplier assessment data, and handles rewards and penalties. However, issues such as environmental protection, occupational health and safety, and labor rights have not yet been fully incorporated into the supplier management policy and will be gradually improved in the future.	Evaluation and improvement in progress.
V. Does the Company make reference to international reporting standards or guidelines to prepare corporate social responsibility or other reports that disclose non-financial information about the Company? Has the confirmation or assurance opinion from third-party certifying institutions been obtained for the reports of the preceding paragraph?		V	The Company has prepared its 2024 Sustainability Report in accordance with the Global Reporting Initiative (GRI) Standards. The report was approved by the Board of Directors on August 5, 2025. Please refer to the Market Observation Post System and the Company's website for details. However, the report has not yet obtained assurance or verification from a third-party assurance provider.	Except for the above-mentioned report, which has not yet obtained assurance or verification from a third-party assurance provider, there are no material differences.
VI. If the Company has its own sustainable development operations in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx listed companies", please describe the differences between its operations and the established principles: If there is no material difference between as described above, and the Company will continue to implement and enforce the Principles with all of its employees in accordance with the guidelines and spirit of the "Sustainable Development Best Practice Principles".
VII. Other important information to help understand the implementation status of sustainable development: The Company has set up a sustainable development section on its website and will disclose relevant information on the Company's website and MOPS in accordance with the actual operations. Furthermore, the Company has completed the preparation of its 2024 Sustainability Report and, in accordance with regulatory requirements, will submit it to the Board of Directors for approval before announcing and filing it on the Market Observation Post System.

Climate-Related Information of TWSE/TPEx Listed Company

Item	Implementation Status
1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.	To address the high uncertainty of climate change and rapid changes in policies and markets, and to better understand and assess the potential impacts of climate-related risks, the Company has initiated the identification of material climate risks and opportunities. The Company also evaluates potential operational risks arising from floods, droughts, typhoons, and extreme heat. This aims to ensure timely responses to climate and market dynamics, and to proactively incorporate such considerations into overall business strategy planning.The Board of Directors serves as the highest supervisory body for the Company's sustainable development. It provides guidance on long-term business strategies and oversees the fulfillment of management responsibilities. The Board also timely urges the management team to make necessary adjustments and provides recommendations to achieve sustainable operations. On May 6, 2025, the Board of Directors resolved to establish the Sustainability Development Committee as the supervisory and promotion unit for the Company's sustainable development. The Management Department serves as a designated executing unit on a concurrent basis, responsible for: (1) formulating, promoting, and strengthening the Company's sustainability policies, annual plans, and strategies; (2) reviewing, tracking, and revising the implementation and effectiveness of sustainability initiatives; (3) overseeing sustainability information disclosure and reviewing the sustainability report; and (4) supervising compliance with the Company's sustainability code of practice and other sustainability-related matters resolved by the Board. The Committee reports annually to the Board on its implementation status.
2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).	Risk category:
	Risk Category	Risk Type	Risk Issue	Impact Duration / Risk Level	Mitigation Measures and Strategies	Financial Impact
	Transition Risks	Policy and regulatory risk	■ In response to the implementation of Taiwan's Climate Change Response Act, greenhouse gas emissions will be subject to a carbon fee, resulting in increased costs.■ Impact description: The imposition of carbon fees will increase operating costs.■ Increasing sustainability-related requirements and regulations - timely disclosure in response to regulatory compliance.■ Impact description: Increased costs for greenhouse gas inventory and verification.	Duration: Long term Risk Level : Low	1.Installation of rooftop solar photovoltaic systems at the new plant to enhance the utilization of renewable energy.2.Reduction of greenhouse gas emissions through the implementation of high-efficiency equipment.1.The Company follows the implementation timetable set out in the Sustainable Development Roadmap for listed companies issued by the Financial Supervisory Commission.2.A greenhouse gas inventory team has been established to complete the relevant inventory and related tasks.	Increase in operating costs
	Physical risks	Immediate risk	■ Increased extreme weather events, including flooding caused by heavy rainfall.■ Impact description: Business interruption and production loss, asset	Duration: Short term Risk Level : High	1.Assess the installation of industrial-grade flood barriers at plant entrances.2.Strengthen emergency response drills to enhance response capability and preventive measures.	Increase in operating costs

Item	Implementation Status
		damage and repair costs, and increased commuting risks for employees.
		■ Increased extreme weather events, such as typhoons and heavy rainfall, may result in losses that cannot be fully covered by insurance. ■ Impact description: Losses not covered by insurance claims.	Duration: Short term Risk Level: Low	Track all insurance statuses.	Increase in operating costs
	Opportunity category:
Opportunity Type	Opportunity Issues	Impact Duration	Mitigation Measures and Strategies	Financial Impact
Energy Source	■ Renewable Energy Devices - Installation of Solar Power Systems ■ Impact Description: 1. By increasing the use of renewable energy, a self-generated and self-consumed solar power system can directly offset electricity costs and reduce related expenses for the Company. 2. The installation of rooftop solar panels can also lower indoor temperatures, thereby reducing air-conditioning energy consumption.	Impact duration: long-term	1. The Company invests in and constructs a self-generated, self-consumed solar power system to supply electricity to factories or offices, with surplus electricity sold back to Taiwan Power Company (Taipower). 2. The generated renewable electricity can be used to apply for renewable energy certificates from the National Renewable Energy Certification Center, and such trading can generate additional income.	Decrease in energy costs.
Resource Use Efficiency	■ Improving energy efficiency ■ Impact description: 1. Introduce process equipment with higher electrical efficiency. 2. Utilize an energy management system to monitor electricity usage in real time.	Impact duration: long-term	1. Prioritize the procurement of energy-efficient production equipment and cooling systems. 2. Implement an AIoT-based smart energy monitoring system to identify real-time electricity consumption hotspots, enabling data-driven and precise energy-saving decisions and reducing waste caused by imbalanced peak and off-peak electricity usage.	Short-term: Increase in system setup costs. Long-term: Improvements in energy efficiency and optimization, leading to lower operational costs.

Item	Implementation Status
3. Describe the financial impact of extreme weather events and transformative actions.	Category	Item	Financial Impact
	Transition Risk	Increase in greenhouse gas emission costs	1. Imposition of carbon taxes leads to increased operating costs. 2. Installation of solar panels at the new factory increases operating expenses.
		Growing sustainability requirements and regulations	Additional verification costs and greenhouse gas data management system expenses.
	Physical Risk	Flooding caused by heavy rain	Business interruption and production loss, asset damage and repair costs, and additional costs arising from employee commuting risks.
		Losses from typhoons and heavy rain not fully covered by insurance	Increased insurance premiums and losses not covered by insurance claims.
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	The Company has incorporated climate-related risks and opportunities into the operations of each department based on its climate risk planning. A risk identification, assessment, and management process has been established. Internal operational impact surveys are conducted for various risks, which are then analyzed to determine key risk items. Execution strategies and targets are defined accordingly. The effectiveness of these strategies and targets is reviewed annually through ESG sustainability meetings to continuously mitigate operational risks. Identification of climate-related risks: The Company plans to identify climate-related risks and opportunities following the Task Force on Climate-related Financial Disclosures (TCFD) framework. We will select climate risk and opportunity factors relevant to the Company, assess their potential impacts on our strategies, operations, and finances to develop and implement response plans.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described.	Currently, the Company does not utilize scenario analysis.
6. If there is a transition plan for managing climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	Currently, the Company has no climate-related risk transition plan.
7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	Currently, the Company doesn’t used internal carbon pricing as a planning tool.
8. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress	The Company has not yet established climate-related targets.
9. If the system is not designed to be a plan, the objectives, and the objectives of the plan are to be considered.	The Company is not able to do any changes in the plan or objectives, and the objectives, and the objectives are not to be considered.
10. If the system is not designed to be a plan, the objectives, and the objectives of the plan are to be considered.	The Company is not able to do any changes in the plan or objectives, and the objectives, and the objectives are not to be considered.

Item	Implementation Status
achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified.
9. Greenhouse gas inventory and assurance status, along with reduction targets, strategies, and specific action plans.	Please refer to Sections 2-1 and 2-2 for further details.

2-1-1 Greenhouse Gas Inventory Information:

In accordance with the Sustainable Development Roadmap for listed companies, the Company is required to disclose its 2025 standalone greenhouse gas inventory information starting in 2026, and to disclose assurance for the 2027 standalone inventory in 2028. Subsidiaries included in the consolidated financial statements are required to disclose their 2026 greenhouse gas inventory information starting in 2027, and to disclose assurance for the 2028 inventory in 2029.

The Company has established a greenhouse gas inventory mechanism in accordance with ISO 14064-1 issued by the International Organization for Standardization (ISO). The greenhouse gas inventory data for the most recent two years have been compiled using the operational control approach, and the total greenhouse gas emissions are summarized as follows (covering all Company sites and excluding subsidiaries).

Category	2025		2024
	Total GHG Emissions: (tCO2e)	Intensity (tCO2e per NT$ million)	Total GHG Emissions: (tCO2e)	Intensity (tCO2e per NT$ million)
Scope I	100.8581	0.15	117.4008	0.13
Scope II	2,376.5886	3.54	2,848.4040	3.27
Scope III	650.8823	0.97	690.0773	0.79

Note: Scope 1: Direct greenhouse gas emissions from sources owned or controlled by the Company.
Scope 2: Indirect greenhouse gas emissions from the generation of purchased electricity, heat, or steam consumed by the Company.
Scope 3: Includes other indirect emissions. Category 3 (transportation-related indirect emissions) refers to greenhouse gas emissions arising from upstream and downstream transportation and distribution using vehicles not owned or controlled by the Company. The Company focuses its inventory on employee commuting. Category 4 (use of products-related indirect emissions) primarily concerns emissions generated over the life cycle of products or services used by the Company. The Company focuses on operational waste, water supply, and fuel- and energy-related activities.

2-1-2 Greenhouse Gas Assurance Information:

The Company's standalone greenhouse gas emissions for 2024 have not been verified by a third-party assurance provider. The Company plans to obtain external verification of its 2025 standalone greenhouse gas emissions under the ISO 14064-1 framework. As of the date of publication of this annual report, the relevant verification procedures are still in progress.

2-2 Greenhouse Gas Reduction Targets, Strategies, and Action Plans:

(1) Greenhouse Gas Reduction Targets (with 2024 as the base year for greenhouse gas emissions):

Short-term Targets (within 2 years)	Medium-term Targets (3–5 years)	Long-term Targets (over 5 years)
1. Establish an internal greenhouse gas inventory mechanism
2. Reduce emission intensity by 0.5%	1. Complete greenhouse gas inventory and verification
2. Reduce emission intensity by 1%	1. Complete greenhouse gas inventory and verification
2. Reduce emission intensity by 2%

Note: Emission intensity = metric tons of CO₂e per NT$ million of revenue

(2) Greenhouse Gas Reduction Strategies and Action Plans:

In response to climate change, Dragon is committed to sustainable development and actively supports national policies by promoting electricity conservation and renewable energy, with the aim of reducing resource consumption and improving energy efficiency.

(A) Install solar panels on the rooftops of the new plant to increase the proportion of self-generated electricity.
(B) Prioritize high-efficiency, low-energy consumption, and energy-saving equipment when replacing outdated machinery.
(C) Enhance the efficiency of air-conditioning systems, including installing variable frequency fans on cooling towers to reduce electricity consumption, adding drift eliminators to prevent water loss, and installing scale treatment equipment to improve cooling efficiency.
(D) Procure and use high-efficiency energy-saving lighting throughout the facility.

(VI) Implementation of ethical corporate management and the differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor:

Evaluation item	State of operations			The differences from the Ethical Corporate Management for TWSE/TPEx Listed Companies and the reasons therefor.
		Yes	No		Summary description
I.	Formulation of the ethical corporate management policy and plan (I) Has the Company formulated an ethical corporate management policy approved by the Board of Directors, and are the policy and practice of ethical corporate management stated in the Company's regulations and external documents, as well as the commitment of the Board of Directors and the senior management to actively implement the policy?	V		The Company has established the "Code of Ethical Conduct for Employees," "Procedures for Ethical Management and Guidelines for Conduct", "Code of Ethical Conduct for Directors and Managerial Officers," and "Ethical Corporate Management Best Practice Principles" and other policies that have been approved by the Board of Directors and presented to the annual shareholders' meetings to establish the corporate culture of ethical corporate management, and the management is actively committed to enforcing and monitoring the implementation of ethical corporate management policies.	No material difference.
(II)	If the Company has established a mechanism for evaluating the risk of unethical conduct, regularly analyzes and evaluates the activities in the scope of business with a higher risk of unethical conduct, and on the basis of this, has formulated a plan to prevent unethical conduct, which covers at least the preventive measures for the conduct set out in Paragraph 2 of Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"?	V		The Company performs risk assessment and analysis for each business activity every year, and conducts audits based on internal control and audit system for business activities with higher risk. The related audits have taken into consideration the preventive measures under Paragraph 2, Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies". The results of the above risk assessment and analysis are reported to the Board of Directors annually, and the most recent report to the Board of Directors was made on November 11, 2025.	No material difference.
(III)	If the Company has specified operating procedures, conduct guidelines, and disciplinary and complaint systems for violations in the plan to prevent unethical conduct and implemented the plan as well as regularly reviews and amends it?	V		The Company has established "Procedures for Reporting Illegal and Immoral or Unethical Conduct", the contents of reports against violations of the "Code of Ethical Conduct for Employees", "Procedures for Ethical Management and Guidelines for Conduct", "Ethical Code of Conduct for Directors and Managerial Officers" and "Ethical Corporate Management Best Practice Principles", the acceptance unit, the form of reports, the reporting channels, the handling procedures, the cases that will not be accepted, and the handling measures, etc. The Company also regularly publicizes the information through the Company's website and electronic bulletin boards within the plant. The Company also encourages employees to promote the effectiveness of preventing unethical conduct by combining rewards and punishment with performance appraisal system.	No material difference.
II.	Implementation of ethical corporate management (I) Does the Company evaluate the ethical records of its counterparties and specify the ethical conduct clauses in the contracts signed with the counterparties?	V		In order to implement the ethical corporate management policy, the Company has posted the standards on the Company's website, and has established integrity clauses in the contracts of business transactions so as to make aware of the Company's commitment to ethical corporate management and the consequences of violations.	No material difference
(II)	Does the Company have a dedicated unit under the Board of Directors to promote ethical corporate management and report	V		The Company's part-time unit for promoting the ethical corporate management is the Administration Department, which is responsible for formulating and amending the	No material difference.
	ethical conduct, including the use of the authority of the company's employees, and the use of the authority of the company's employees' employees' rights to conduct the business.		and the management of the business activities.	and the management of the business activities.

Evaluation item	State of operations			The differences from the Ethical Corporate Management for TWSE/TPEx Listed Companies and the reasons therefor.
		Yes	No		Summary description
(III)	regularly (at least once a year) to the Board of Directors on its ethical management policy and plan to prevent unethical conduct and monitor their implementation?	V		“Ethical Corporate Management Best Practice Principles” and overseeing the implementation of the “Ethical Corporate Management Best Practice Principles”. The implementation status of integrity management is reported to the Board of Directors annually, with the most recent report being presented on November 11, 2025. The Company has established the "Code of Ethical Conduct for Employees" for employees and the "Code of Ethical Conduct for Directors and Managerial Officers" for Directors and managerial officers to prevent conflicts of interest and to provide a channel for relevant personnel to proactively state whether they have potential conflicts of interest with the Company. Internally, the Company has a mechanism for “reporting misconduct” on the internal website and a channel to file complaints on the "Stakeholders' Section" of the Company's website.	No material difference.
(IV)	If the Company has established an effective accounting system and internal control system for the implementation of ethical corporate management, and the internal audit unit draws up relevant audit plans based on the evaluation results of risk of unethical conduct, and audits the compliance of the plan to prevent unethical conduct or entrusts a CPA to perform the audit?	V		The Company has established an effective accounting system and internal control system, and includes "ethical corporate management" in its annual internal control risk assessment, and formulates a relevant audit plan based on the assessment results and perform relevant audit operations. In case of special circumstances, we will also arrange for a special audit.	No material difference.
(V)	Does the Company regularly organize internal and external education and training on ethical corporate management?	V		The Company provides employees with a clear understanding of ethical corporate management concepts and standards through, management meetings and regular internal training.	No material difference.
(II)	The operations of the Company's whistleblower reporting system Has the Company set up a specific whistleblower reporting and reward system and a convenient reporting channel, and designated appropriate personnel to deal with the reported matters?	V		The Company has established the “Procedures for Reporting Illegal and Immoral or Unethical Conduct” to handle whistleblower reports, which can be made in writing or electronically, with the spokesperson receiving reports from shareholders, investors and other stakeholders, and the audit officer receiving reports from internal employees, customers and suppliers. Procedures for handling whistleblower reporting: 1. If a whistleblower report is found to be substantiated, it will be handled in accordance with the relevant disciplinary provisions in the Company's "Work Rules" and the Company shall provide the person against whom the whistleblower report is made with an opportunity to present his or her views or to file a complaint before a decision on disciplinary action is made. 2. The Company will maintain the confidentiality and protect the whistleblower or the	No material difference.
(II)	Has the Company formulated standard operating procedures for the investigation of the reported matters, follow-up measures to be taken after the completion of the investigation, and the relevant confidentiality mechanisms?	V

Evaluation item	State of operations			The differences from the Ethical Corporate Management for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
(III) If the Company takes measures to protect whistleblowers from being improperly handled due to reporting?	V		person participating in the investigation from unfair treatment or reprisal. If the whistleblower or the person participating in the investigation is subject to unfair treatment, reprisal or similar circumstances, please be sure to respond to the original receiving office. Any individual found to have disclosed confidential information will be dealt with in accordance with the Company’s internal disciplinary regulations.
3. If, after investigation, the receiving unit finds that the matter reported involves Directors, or senior executives (manager level and above), or that there is a significant violation of the law that could cause the Company to suffer significant harm, it shall immediately report the matter to Independent Directors and the Audit Committee.
4. The responsible unit shall complete the investigation within 30 working days from the date of accepting the whistleblowing case. However, the investigation period may be extended if necessary. The investigation results and handling recommendations shall be reported to the President and the Chairperson.
5. The results of the investigation will be notified to the complainant by special letter, telephone or other means.
6. If a complainant protests about something that he/she knows to be false or provides false evidence, the complainant shall be held responsible if criminal liability is involved, and the Company reserves the right to pursue legal action.
7. If the whistleblowing case is substantiated and the circumstances are significant, the complainant shall be given appropriate rewards according to his or her contribution and the amount of economic benefits generated.
In accordance with the Company's “Procedures for Reporting Illegal and Immoral or Unethical Conduct”, the Company shall maintain the confidentiality and protect the person making the whistleblower report or participating in the investigation.	No material difference.
IV. Enhancement of information disclosure
(I) Does the Company disclose the content and effectiveness of its Ethical Corporate Management Principles on its website and the Market Observation Post System?	V		The Company has disclosed the "Ethical Corporate Management Best Practice Principles" and "Procedures for Ethical Management and Guidelines for Conduct" on the Market Observation Post System, and reveals ethical corporate management-related regulations and implementation status on the "Corporate Governance Section" on the Company's website.	No material difference
V. If the Company has related practice principles of its own in accordance with the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies", please state the differences between the two and the state of implementation: No material difference

Evaluation item	State of operations
	Yes	No	Summary description
VI. Other important information that is helpful to understand the implementation of ethical corporate management (For example, if the Company reviews and amends its ethical corporate management best practice principles.):
(I) The Company strictly complies with the laws and regulations of the country (Company Act, Securities and Exchange Law, regulations related to listing on TWSE/TPEx or other business practices) as the basis for the implementation of ethical corporate management.
(II) The Company regularly arranges for Directors and department leaders to attend corporate governance courses to enhance their ability to oversee and govern the Company, with the aim of improving the effectiveness of corporate governance and the effectuation of ethical corporate management.

(VIII) Other important information that is helpful to understand the Company's implementation of corporate governance may also be disclosed:

The Company has established the "Corporate Governance Best Practice Principles", "Code of Ethics for Directors and Managerial Officers", "Code of Ethical Conduct for Employees", "Sustainable Development Best Practice Principles", and "Ethical Corporate Management Best Practice Principles". The information is available in the Investor Section of the Company's website for investors' reference.

(VIII) The implementation status of the internal control system shall be disclosed as follows:

The statement of internal control: Please refer to Market Observation Post System (MOPS) → Single Company → Corporate Governance → Company Rules/Internal Control → Internal Control System Statement Disclosure https://mops.twse.com.tw/mops/#/web/t06sg20
Where a CPA was entrusted to review the internal control system, the review report should be disclosed: None

(IX) For the most recent year and as of the date of publication of this Annual Report, important resolutions of the shareholders' meetings and the Board of Directors:

Shareholders' meetings:

Date of Meeting	Meeting Title	Agenda Item	Resolution/Implementation Status
2025.05.28	2025 Annual Shareholders' Meeting	1. 2024 business report and financial statements	Implemented as resolved
		2. 2024 earnings distribution proposal	Aug. 3, 2025 was set as the ex-rights and ex-dividend record date and the payment was made on Aug 28, 2025.
		3. Proposal for issuance of new shares through capitalization of earnings.	August 3, 2025 was set as the ex-rights and ex-dividend record date, and the distribution of new shares was completed on August 28, 2025.
		4. Proposal for amendments to the Company's Articles of Incorporation.	Implemented as resolved

Board of Directors:

Date of Meeting	Agenda Item	Resolution/Implementation Status
2025/01/14
(4th meeting of the 13th term)	1. The Company’s 2025 operational plan
2. Evaluation of the independence and suitability of the attesting CPAs for 2025 and the appointment of CPAs
3. The Company’s 2024 managerial officer year-end bonus payment	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.
2025/03/07
(5th meeting of the 13th term)	1. Distribution of remuneration to employees and remuneration to Directors for 2024
2. 2024 business report and financial statements
3. 2024 earnings distribution proposal
4. Proposal for capital increase from earnings and issuance of new shares.
5. Statement on the Company’s internal control system. -
6. Approved the definition of “staff-level employees.”
7. Proposal for amendments to “Articles of Incorporation.”
8. Proposal for the appointment of Directors to subsidiaries by the Company.
9. Proposal for amendments to "Corporate Governance Best Practice Principles"	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.

Date of Meeting	Agenda Item	Resolution/Implementation Status
	10. Salary Adjustment Proposal for the Company's Special Assistant.11. Matters related to the Company's 2025 annual shareholders' meeting
2025/05/06(6th meeting of the 13th term)	1. Consolidated financial statements for the Q1 20252. Establishment of the Company's "Organization Charter of the Sustainability Development Committee."3. Proposal to establish the Company's "Sustainability Development Committee" and to appoint its members.	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.
2025/06/30(7th meeting of the 13th term)	1. Proposal for the record date for the issuance of new shares through capitalization of 2024 earnings and for the distribution of cash dividends, as well as other related matters.	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.
2025/08/05(8th meeting of the 13th term)	1. Consolidated financial statements for the Q2 20252. The Company's 2024 Sustainability Report.3. Proposal for amendments to the Company's "Employee Compensation Distribution Policy."	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.
2025/11/11(9th meeting of the 13th term)	1. Consolidated financial statements for the Q3 20252. The Company's 2026 annual audit plan3. Establishment of the Company's "Risk Management Policy and Procedures."	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.
2025/12/23(10th meeting of the 13th term)	1. The Company proposes to dispose of the superficies right of Plant 1, together with the factory buildings and other structures, attachments, and ancillary facilities located thereon.	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.
2026/01/23(11th meeting of the 13th term)	1. The Company's 2026 operational plan2. Evaluation of the independence and suitability of the attesting CPAs for 2026 and the appointment of CPAs3. Proposal for amendments the Company's "Computerized Information System Cycle."4. Proposal for amendments to the Company's "Payroll Cycle."5. The Company's 2025 managerial officer year-end bonus payment6. Proposal for adjustments to the compensation of the Company's managerial officers.	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.
2026/03/04(12th meeting of the 13th term)	1. Distribution of remuneration to employees and remuneration to Directors for 20252. 2025 business report and financial statements3. 2025 earnings distribution proposal4. Statement on the Company's internal control system5. Proposal to assess the scope of "non-managerial employees" for 2026.6. Proposal to apply for a bank performance guarantee facility.7. Proposal to amend certain provisions of the Company's "Sustainability Best Practice Principles."8. Matters related to the Company's 2026 annual shareholders' meeting	The proposal was unanimously approved by all attending Directors and executed in accordance with the resolution, with disclosure made pursuant to the requirements of the competent authority.

(X) If the Directors have different opinions on the resolutions reached by the Board of Directors with a record or written statement made in the most recent year and the current year as of the date of publication of the Annual Report, please state the main content: Not applicable.

IV. Information on the professional fees of the attesting CPAs

(I) Information on the professional fees of the attesting CPAs:

Unit: NTD thousand

Name of the CPA firm	Name of the CPA	CPA audit period	Audit fees	Non-audit fees	Total	Remark
PwC Taiwan	Chun-Kai Wang	2025.01.01~2025.12.31	1,110	602	1,712	Non-audit fees: translation of financial statements, tax certification, application for capitalization of retained earnings, and travel, typing, printing expenses, etc.
	A-Shen Liao	2025.01.01~2025.12.31

(II) The audit fees paid in the year of the replacement of CPA firm are less than the audit fees in the year before the change. The audit fees before and after the replacement should be disclosed and the reasons therefor: None.
(III) Where the audit fees decreased by $10\%$ or more from the previous year, the amount, percentage and reasons therefor should be disclosed: None.

V. Information on Replacement of CPAs: None

VI. Any of The Company's Chairperson, President, or managers involved in financial or accounting affairs being employed by the auditor's firm or any of its affiliate within the recent year: None.

VII. Transfer and change in pledge of shares by Directors, Supervisors, managerial officers and shareholders with more than $10\%$ ownership in the most recent year and as of the date of publication of this Annual Report: (I) Change in ownership of Directors, managerial officers and major shareholders:

Unit: Shares

Job title	Name	2025		As of March 31, 2026
		Increase (Decrease) in the number of shares held	Increase (Decrease) in the number of shares pledged	Increase (Decrease) in the number of shares held	Increase (Decrease) in the number of shares pledged
Chairperson and shareholders with more than 10% ownership	Hong Long Investment Co., Ltd.	159,479	-	-	-
Corporate Representative and shareholders with more than 10% ownership	Kun-Sheng Wang	151,108	-	-	-
Director	Sheng Shi Investment Co., Ltd.	(35,541)	-	-	-
Corporate Representative and President	Hsuan-I Chen	(71,045)	-	-	-
Director and Deputy General Manager	Wen-Yu Li	1,725	-	-	-
Director and Deputy General Manager	Ming-Tsung Wang	3,135	-	-	-
Independent Director	Shu-Hsien Hu	-	-	-	-
Independent Director	J-Tung Wan	-	-	-	-
Independent Director	Chih-Peng Chen	-	-	-	-
Deputy General Manager	Cheng-Feng Pan	2,020	-	(4,000)	-
Manager	Kuang-Chen He (Note 1)	(2,250)	-	-	-
Chief Engineer	Chun-Chia Wu	2,538	-	-	-
Deputy General Manager	Hung-Shun Huang	747	-	-	-
Deputy General Manager	Ching-Li Chen	(166)	-	-	-
Head of Accounting Department	Tzu-Yen Tseng	51	-	-	-
Corporate Governance Officer	Ching-Fang Chen	(10,795)	-	-	-

Note 1: Dismissed on January 14, 2026

(II) If the counterparty to whom the shares are transferred by a Director, managerial officer or major shareholder is a related party: None
(III) If the counterparty to whom the shares are pledged by a Director, managerial officer or major shareholder is a related party: None

VIII. Relationships among the Company's top ten shareholders:
March 30, 2026; Units: Shares; %

Name	Shareholding in the name of the individual	Shareholding of spouse and minor children	Shareholding in the name of others	The name and relationship among the top 10 shareholders if anyone is a related party, a spouse or a relative within second degree of kinship of another	Remark
Number of shares	Sharehold-ing percentage	Number of shares	Sharehold-ing percentage	Number of shares	Sharehold-ing percentage
Hong Long Investment Co., Ltd.	6,379,187	15.95%	-	-	-
Kun-Sheng Wang	5,966,916	14.92%	-	-	-
Gao Zhan Investment Co., Ltd.	A related party
Ke Yue Co., Ltd.	2,787,641	6.97%	-	-	-
Yi Chuan Co., Ltd.	1,908,717	4.77%	-	-	-
Yi De Co., Ltd.	1,773,333	4.43%	-	-	-
Yi Sheng Co., Ltd.	1,652,307	4.13%	-	-	-
Gao Zhan Investment Co., Ltd.	1,632,529	4.08%	-	-	-
Sheng Shi Investment Co., Ltd	1,418,385	3.55%	-	-	-
Yi Fa Co., Ltd.	1,248,589	3.12%	-	-	-
Yu-Chuan Chen	512,590	1.28%	-	-	-

Investee	Investment of the Company		Investment of the Directors, supervisors, managerial officers and businesses under direct or indirect control		Total investment
	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage	Number of shares	Shareholding percentage
Drewloong Technologies, Inc.	12,000	100%	None	None	12,000	100%

Three. Capital Overview

I. Capital and shares

(I) Source of capital:

Unit: Shares/NTD

Year/Month	Issue price (NTD)	Authorized capital		Paid-in capital		Remark
		Number of shares	Amount	Number of shares	Amount	Source of capital	Using property other than cash as payment for shares	Others
1990/08	1,000	6,000	6,000,000	6,000	6,000,000	Establishment capital	None	August 8, 1990Approved by the letter Construction II No. 275319 from Kaohsiung City Government
2001/01	10	1,100,000	11,000,000	1,100,000	11,000,000	Capital increase by cash $3,000,000	None	Approved by the letter Jing-(2001)-Zhong-Zi No. 9031561580 dated January 12, 2001.
2001/04	10	2,600,000	26,000,000	2,600,000	26,000,000	Capital increase by cash $15,000,000	None	Approved by the letter Jing-(2001)-Zhong-Zi No. 09032025050 dated April 18, 2001.
2001/06	10	6,200,000	62,000,000	6,200,000	62,000,000	Capital increase by cash $36,000,000	None	Approved by the letter Jing-(2001)-Zhong-Zi No. 09032407180 dated June 29, 2001.
2001/10	10	9,800,000	98,000,000	9,800,000	98,000,000	Capital increase by cash $36,000,000	None	Approved by the letter Jing-(2001)-Zhong-Zi No. 09032889480 dated October 09, 2001.
2002/08	10	10,000,000	100,000,000	10,000,000	100,000,000	Capital increase by cash $2,000,000	None	Approved by the letter Jing-Shou-Shang-Zi No. 09101350070 dated August 28, 2002.
2009/02	10	11,600,000	116,000,000	11,600,000	116,000,000	Capital increase in connection with merger $16,000,000	None	Approved by the letter Jing-Shou-Shang-Zi No. 09831755880 dated February 19, 2009.
2009/06	10	14,260,000	142,600,000	14,260,000	142,600,000	Capital increase from earnings $600,000Capital increase from capital surplus $26,000,000	None	Approved by the letter Jing-Shou-Shang-Zi No. 09832382000 dated June 05, 2009.
2011/06	10	15,000,000	150,000,000	15,000,000	150,000,000	Capital increase from earnings $7,400,000	None	Approved by the letter Si-Wei-Jing-Shang-Gong-Zi No. 10081211160 from Kaohsiung City Government dated June 03, 2011.
2014/02	20	17,500,000	175,000,000	17,500,000	175,000,000	Capital increase by cash $25,000,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 10350384400 from Kaohsiung City Government dated February 05, 2014.
2015/01	20	21,500,000	215,000,000	21,500,000	215,000,000	Capital increase by cash $40,000,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 10450371100 from Kaohsiung City Government dated January 23, 2015.
2016/08	30	26,000,000	260,000,000	26,000,000	260,000,000	Capital increase by cash $34,250,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 10554892000 from Kaohsiung City Government dated August 29, 2016.
	10					Capital increase from earnings $10,750,000
2018/01	10	60,000,000	600,000,000	30,000,000	300,000,000	Capital increase from capital surplus $40,000,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 10750042310 from Kaohsiung City Government dated February 01, 2018
2019/09	10	60,000,000	600,000,000	31,500,000	315,000,000	Capital increase from earnings $15,000,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 10853112400 from Kaohsiung City Government dated August 05, 2019
2019/09	140	60,000,000	600,000,000	35,800,000	358,000,000	Capital increase by cash $43,000,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 10853737600 from Kaohsiung City Government dated September 19, 2019
2023/09	10	60,000,000	600,000,000	39,000,000	390,000,000	Capital increase from capital surplus $32,000,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 11253437300 from Kaohsiung City Government dated September 6, 2023
2025/08	10	60,000,000	600,000,000	40,000,000	400,000,000	Capital increase from earnings $10,000,000	None	Approved by the letter Jing-Shang-Gong-Zi No. 11453037000 from Kaohsiung City Government dated August 8, 2025

2.Type of shares:
March 31, 2026; Units: Shares

Type of shares	Authorized capital					Remark
	Outstanding shares			Unissued shares	Total
	Listed	Unlisted	Total
Common shares	40,000,000	-	40,000,000	20,000,000	60,000,000	-

(II) List of major shareholders: (Name of shareholders with $5\%$ or more ownership or the top ten shareholders, amount and percentage of shares held)

March 30, 2026

Shares Name of major shareholders	Number of shares held	Shareholding percentage (%)
Hong Long Investment Co., Ltd.	6,379,187	15.95%
Kun-Sheng Wang	5,966,916	14.92%
Ke Yue Co., Ltd.	2,787,641	6.97%
Yi Chuan Co., Ltd.	1,908,717	4.77%
Yi De Co., Ltd.	1,773,333	4.43%
Yi Sheng Co., Ltd.	1,652,307	4.13%
Gao Zhan Investment Co., Ltd.	1,632,529	4.08%
Sheng Shi Investment Co., Ltd	1,418,385	3.55%
Yi Fa Co., Ltd.	1,248,589	3.12%
Yu-Chuan Chen	512,590	1.28%

(III) The Company's dividend policy and implementation:

Dividend policy

If the Company has surplus earnings in a year as concluded by the year-end accounting close, the Company shall first pay taxes, make up for past losses, and then set aside $10\%$ as the Company's legal reserve, except when the legal reserve has reached the total capital. Then the Company shall set aside or reverse special in accordance with the law, after which, the remaining earnings together with the undistributed earnings at the beginning of the period are consolidated into the accumulated distributable earnings, which shall be the basis for the Board of Directors to make a proposal for earnings distribution to the shareholders.

With the attendance of more than two-thirds of the directors and the approval of a majority of the directors present, the Board of Directors may resolve to distribute all or part of dividends and bonuses, capital surplus, or legal reserve in cash, and report such distribution to the shareholders' meeting. In such case, the requirement under the preceding paragraph for approval by the shareholders' meeting shall not apply.

The Company's dividend policy is based on its current and future development plans, taking into account the investment environment, capital requirements, domestic and international competition, and the interests of shareholders to distribute dividends to shareholders at a rate of no less than $10\%$ of the distributable earnings newly generated each year, in cash or in stock, with cash dividends of not less than $10\%$ of the total dividends distributed.

Distribution of proposed (paid) dividends for the year

At the Board meeting held on March 4, 2026, it was resolved to distribute cash dividends totaling NT$200,000,000 from the Company's distributable earnings for 2025, equivalent to NT$5 per share. The Chairman is authorized to set the record date for dividend distribution and to handle all related matters.

(IV) The effect of the stock dividends to be proposed to the shareholders' meeting on the Company's business results and earnings per share: Not applicable.

(V) Remuneration to employees and Directors:

The percentage and range of remuneration to employees and Directors as stated in the Company's Articles of Incorporation:

The Company shall, based on its profitability for the year, appropriate $1\%$ to $10\%$ of annual profits as employee compensation, of which no less than $70\%$ shall be allocated to non-managerial employees. In addition, no more than $3\%$ of annual profits may be appropriated as directors' remuneration. However, if the Company has accumulated losses, such losses shall first be offset.

Remuneration to employees may be made in stock or cash and may be made to employees of controlling or subordinate companies who meet certain criteria, the terms and distribution method of

which are authorized to be determined by the Board of Directors. Remuneration to Directors can only be paid in cash.

The profitability for the year mentioned above refers to the profit before tax before distribution of remuneration for employee remuneration and remuneration to Directors.

The distribution of remuneration to employees and remuneration to Directors shall be resolved by the Board of Directors, with the presence of two-thirds of the Directors and the approval of a majority of the Directors present, and reported to the shareholders' meeting.

The basis for estimating the amount of remuneration to employees and Directors, the basis for calculating the number of shares for remuneration to employees in stock, and the accounting treatment if the actual amount of distribution differs from the estimated amount:

The compensation for employees and Directors is based on management's estimate of the amount that could be paid. If actual distribution amount on which the Board of Directors subsequently decides is materially different from the estimated amount, the difference is recorded as an adjustment to profit or loss in the following year.

Distribution of remuneration approved by the Board of Directors:

(1) Amount of remuneration with employees, Directors and supervisors distributed in cash or stock. If there is a difference from the amount estimated in the year in which the expense is recognized, the amount of the difference, the reason for the difference, and the treatment of the difference shall be disclosed:

On March 4, 2026, the Board of Directors resolved to distribute remuneration to employees and Directors for 2025 with remuneration to employees in the amount of NT$10,500 thousand and remuneration to Directors in the amount of NT$4,570 thousand. There was no difference between the above remuneration and the estimated amount of expense recognized in the year.

(2) The percentage of the amount of remuneration to employees distributed in stock to the net profit after tax and total remuneration to employees on the parent company only financial statements for the period: None.

The difference between the actual amount of remuneration to employees, Directors and supervisors for the previous year (including the number of shares distributed, the amount and the share price) and the recognized amount of remuneration to employees, Directors and supervisors, the reasons for the difference and the treatment of the difference should be described:

The Company's remuneration for 2024 was reported to the annual shareholders' meeting on May 28, 2025, and the cash remuneration to employees was NT$11,880 thousand and remuneration to Directors was NT$10,810 thousand. The actual distribution was not different from the recognized amount.

(VI) Repurchase of the Company's shares: None.

II. Issuance of corporate bonds:

(I) Issuance of corporate bonds:

Type of corporate bonds	First domestic unsecured corporate bonds of the Company
Issue (transaction) date	July 16, 2024
Face value	NT$100,000
Place of issue and trading (Note 1)	Not applicable
Issue price	116.21
Issue amount	NT$500,000 thousand
Coupon rate	Annual interest rate 0%
Term	Term: Three years Maturity date: July 16, 2027
Guarantor	None
Trustee	Taishin International Bank Co., Ltd.
Underwriter	Taishin Securities
Attesting lawyer	Li-Fei Chiou
Attesting CPA	CPAs Chun-Kai Wang and A-Shen Liao ( PwC Taiwan)
Redemption method	To be repaid in a lump sum in cash upon maturity at par value.
Unredeemed balance	As of March 31, 2026, the outstanding principal amounted to NT$500,000 thousand.
Conditions for redemption or early redemption	Please refer to Articles 18 and 19 of the “Regulations Governing the Issuance and Conversion of First Domestic Unsecured Corporate Bonds” published by the Company.

Restrictive covenants		None
Name of rating agency, date and result of rating		Not Applicable
Other rights	The monetary amount of common shares, global depository receipts, or other securities already converted, exchanged, or subscribed up to the annual report publication date	As of March 31, 2026, no conversion has occurred.
	The issuance and conversion, exchange, or subscription rules	Please refer to the “Regulations Governing the Issuance and Conversion of First Domestic Unsecured Corporate Bonds” published by the Company
The possible dilution of shareholding and influence on shareholder equity caused by the issuance and conversion, exchange, or subscription rules and the terms of issuance.		No significant influence
Name of the custodian institution of the exchangeable underlings		None

Note1 : The bonds are overseas corporate bonds.

(II) Convertible Corporate Bonds:

Type of corporate bonds		First issuance of domestic unsecured corporate bonds
Fiscal year Item		2025	As of March 31, 2026
Market price of convertible corporate bonds	Maximum	Not applicable (Note)	Not applicable (Note)
	Minimum
	Average
Conversion price		NT$160.6
Effective Date: August 3, 2025	NT$160.6
Effective Date: August 3, 2025
Issue (transaction) date and conversion price at issuance		July 16, 2024
NT$175	July 16, 2024
NT$175
Method for performance of conversion obligations		Issuance of new shares	Issuance of new shares

Note: As of March 31, 2026, there have been no conversions of the Company's first domestic unsecured convertible bonds.

(III) Exchangeable Corporate Bonds: None
(IV) Shelf-registered Corporate Bonds: None
(V) Corporate Bonds with Warrants: None

III. Preferred shares: None.

IV. Global depository receipts: None.

V. Employee share subscription warrants and new restricted employee shares: None.

VI. Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies: None.

VII. Implementation of capital utilization plan:

(I) Content of the plan

For detailed information, please refer to the Market Observation Post System (MOPS) under:

Individual Company > Shareholding Changes / Securities Issuance > Fundraising > Execution of Fundraising Plans

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

(II) Implementation

For detailed information, please refer to the Market Observation Post System (MOPS) under:

Individual Company > Shareholding Changes / Securities Issuance > Fundraising > Execution of Fundraising Plans

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

Four. Operational Highlights

I. Business activities

(I) Scope of business

1. The main business scope of the Company

The Company's main business scope includes R&D, production and sales of large aircraft fuselage structural parts, large aircraft engine structures, landing gear parts and special molds and jigs. Its sales customers include major domestic and foreign aircraft manufacturers.

2. Proportion of business

Unit: NTD thousand; %

Year Main products	2025		2024
	Amount	Percentage	Amount	Percentage
Aircraft structural components	631,113	94.07	763,479	87.61
Molds and others	39,752	5.93	107,973	12.39
Total	670,865	100.00	871,452	100.00

3. The Company's current products and services

(1) Aircraft fuselage structural components.
(2) Aircraft engine structural parts.
(3) Aircraft landing gear spare parts.
(4) Special die and fixture.

4. New products and services planned to be developed

(1) Development of new single-aisle aircraft fuselage structural parts
(2) Development of airframe structural parts for wide-body airliners.
(3) Development of airframe structural parts for freighter and passenger aircrafts converted to freighter.
(4) Development of structural components for commercial aircraft fuselages
(5) Development of molds and fixtures required for the production of various aerospace parts.
(6) Development of heat treatment and surface treatment processes for hard metal components.
(7) Development of structural components for defense equipment.

(II) Industry overview

1. Current status and development of the industry

In response to the continued recovery in global air passenger traffic following the pandemic, demand for air travel is expected to remain strong during 2025-2026. As passenger volumes have exceeded pre-pandemic levels and continue to expand, airlines are further advancing fleet renewal and procuring new aircraft with higher fuel efficiency and lower emissions. According to statistics from the International Air Transport Association, total passenger traffic in 2025 increased by $5.2\%$ compared to 2024, and is projected to reach approximately 5.2 billion passengers in 2026, representing a growth of about $4.4\%$ to $4.9\%$ over 2025. This indicates that demand in the aviation sector continues to show a steady upward trend.

In addition, based on 20-year (2025-2044) forecasts by the world's two major aircraft manufacturers, Boeing and Airbus, global demand for new aircraft—driven by both market growth and replacement needs—is estimated at 43,600 and 43,420 units, respectively. This demonstrates that the overall aviation industry is expected to maintain stable growth over the next two decades.

Boeing Forecast: Airlines will need 43,600 new airplanes over 20 years (2025~2044)

Source : BOEING 2025 COMMERCIAL MARKET OUTLOOK

Airbus Forecast: Demand for 43,420 new passenger & freighter aircraft over 2025-2044

Source: AIRBUS Global Market Forecast 2025

Correlation among the upstream, midstream and downstream of the industry

Currently, the global commercial aircraft market is largely dominated by Boeing in the United States and Airbus in France, which hold the majority of civil aircraft orders and are primarily responsible for overall aircraft integration and system design. Aircraft structural manufacturing is typically subcontracted to major suppliers such as Spirit AeroSystems and STELIA Aerospace. In December 2025, Boeing completed the acquisition of its key structural supplier Spirit AeroSystems, aiming to strengthen supply chain control, enhance quality stability, and reduce production risks. This move is expected to have a significant impact on the global aerospace supply chain structure. Aircraft engines are primarily supplied by major manufacturers, including CFM International (a joint venture between Safran Aircraft Engines and GE Aviation), GE Aviation, Rolls-Royce, Safran Group, Pratt & Whitney, and Honeywell. The Company possesses the precision technology required for manufacturing airframe structures, engine structures, and landing gear components, and has a comprehensive production capability ranging from processing and manufacturing, special processes to surface treatment integrated capacities. Over the years, the quality of delivery and manufacturing capability have been recognized and certified by major international manufacturers, and the products are directly shipped to Spirit Aerosystems and Safran Group, Tier 2 manufacturer of the aerospace manufacturing industry.

Product development trends

International aircraft manufacturers continue to adopt technological innovation, environmental sustainability, and market transformation as their core strategies in response to the long-term global trend of energy conservation and carbon reduction in the aviation industry. With the advancement of net-zero emission targets, next-generation lightweight materials, hybrid propulsion, and electric propulsion technologies are rapidly evolving to improve energy efficiency and reduce carbon emissions. At the same time, significant progress has been made in the research and commercialization of Sustainable Aviation Fuel (SAF). Governments and major airlines worldwide have established clear SAF adoption targets and formed international collaborations to expand production capacity and reduce costs, indicating that the industry's investment in alternative fuels has entered a stage of practical implementation.

In terms of market structure, demand for single-aisle narrow-body aircraft remains strong as airlines continue to pursue greater fuel efficiency and operational economics. According to the latest market outlook reports released at the end of 2025 by Boeing and Airbus, single-aisle aircraft are expected to account for more than 75% of global new aircraft demand over the next 20 years, becoming the dominant segment in fleet replacement cycles. This trend reflects that regional and short-haul routes remain the primary drivers of growth in air transportation, prompting manufacturers to continuously optimize airframe design and engine performance to deliver more efficient, lower-emission, and sustainability-aligned solutions.

Competition

The Company continues to deepen its presence in the global aerospace supply chain and is one of the qualified key suppliers to several major international aerospace companies. It demonstrates stable manufacturing capabilities and technical advantages in critical areas such as airframe structures, engine components, and landing gear systems. Through flexible capacity allocation and customized manufacturing solutions, the Company effectively meets diverse customer needs. Leveraging consistent quality and reliable on-time delivery, it has established a trustworthy and reputable partnership image in the global market.

As global commercial aircraft and engine manufacturers adopt cross-border division of labor and localized supply chain strategies, emerging countries are accelerating the formation of aerospace manufacturing clusters, supported by advantages in land, labor, and government policies. While this development has diversified industry distribution, it has also placed pressure on Taiwan's aerospace manufacturers in terms of price competition and potential order migration.

In response to international competition and market dynamics, the Company focuses on technological innovation and quality management. It continues to adopt advanced technologies such as digital manufacturing, smart production lines, and automated inspection systems to enhance process stability and production efficiency. At the same time, the Company actively engages in research and development in emerging areas such as new material applications and sustainable manufacturing to enhance product value. Through cost efficiency and flexible production management, the Company continues to strengthen its global competitiveness, steadily expanding market share, and solidify its long-term strategic position in the international aerospace supply chain.

(III) Technology and R&D overview

The technology level and research and development of the business

The Company mainly develops and mass-produces the airframe structure, engine structure, and landing gear components of medium and large aircraft. The Company's R&D team makes self-owned research and development for the Company's manufacturing capacity to provide a relatively complete technology capability, including: Hydroforming technology, multi-axis precision machining technology, three-dimensional measurement technology, heat treatment technology, non-destructive testing technology - fluorescence inspection, bead striking technology, anodizing treatment technology, and painting operations, and related special processes have all passed certification by NADCAP (International Aerospace and National Defense Agency) Certification Institute), Northrop Grumman,

Lockheed Martin Sirkorsky, and the Boeing Company. The certifications obtained by the Company and its subsidiaries are summarized as follows:

Item	Certificate name	Scope of certification	Certification body
1	Quality system	ISO 9001:2008 & AS9100C	SAI GLOBAL
2	Chemical process	NADCAP CP AC7108, AC7108/01, AC7108/04, AC7108/08, AC7108/11, AC7108/12, AC7108/15	NADCAP
3	Non-destructive testing	NADCAP NDT AC7114, AC7114S, AC7114/1, AC7114/1S	NADCAP
4	Heat treatment	NADCAP HT AC7102, AC7102S, AC7102/2, AC7102/5, AC7102/8	NADCAP
5	Bead strike	NADCAP SE AC7117, AC7117/2	NADCAP
6	Qualified suppliers	Category 1 supplier evaluation	AIDC
7	Qualified suppliers	CNC Machining Process, DPP, CMS	Evergreen EGAP
8	Qualified suppliers	NORTHROP GRUMMAN	NORTHROP GRUMMAN
9	Qualified suppliers	PARKER	PARKER
10	Qualified suppliers	AIRCELLE	AIRCELLE
11	Qualified suppliers	NORTHSTAR QAS-004	NORTHSTAR
12	Qualified suppliers	Quality System Approval AS9100	SPIRIT
13	Qualified suppliers	LOCKHEED MARTIN	LOCKHEED MARTIN
14	Process qualified suppliers	PCS4003 Machining, PCS6000 Machining	SAFRAN
15	Special production process Qualified suppliers	PR5000 Non-destructive examination, MIL-A-8625 Anodizing, PCS2220 Chemical Processing, PCS2300 Bead striking, PCS3200 Non-destructive Examination	SAFRAN
16	Special production process Qualified suppliers	Passivation treatment, sulfuric acid anodizing, chromic acid anodizing	STELIA
17	Special production process Qualified suppliers	D1-4426 (including heat treatment technology, non-destructive examination, anodizing treatment, chemical conversion coating process, passivation treatment, bead striking and coating technology)	BOEING
18	Special production process Qualified suppliers	Non-destructive testing, anodizing, chemical conversion coating process, bead striking, coating	NORTHROP GRUMMAN
19	Special production process Qualified suppliers	Heat treatment technology, non-destructive testing, anodizing treatment, chemical conversion coating process, bead striking	SIKORSKY
20	Special production process Qualified suppliers	Anodizing treatment, chemical conversion coating process	UTC
21	Special production process Qualified suppliers	Heat treatment technology	BOMBARDIER

2. R&D expenses in the most recent year

Unit: NTD thousand; %

Year Item	2025	2024	2026 As of the end of previous quarter
R&D expenses	22,884	38,069	Note
Net revenue	670,865	871,452	Note
Proportion to net operating revenue (%)	3.41	4.37	Note

Note: As of the publication date of the annual report, the financial information of Q1, 2026 has not been reviewed by CPAs and therefore not disclosed.

3. Successfully developed technologies or products in the most recent year

In order to strengthen competitiveness, cultivate talents, and upgrade technology, the Company has successfully developed a number of aircraft body and engine structures, and landing gear components. The technologies or products successfully developed in the most recent year are as follows:

Year	Name of successfully developed product
2024	B767 large-scale aircraft structural components
	B777 large-scale aircraft structural components
	Development of structural components for unmanned aerial vehicles (UAVs)

Year	Name of successfully developed product
	Development of satellite structural components
	Development of new large-scale aircraft fuselage programs
2025	B737 Section 48 fuselage structural components
	B767 fuselage structural components
	B777-8F fuselage structural components
	Development of new large-scale aircraft fuselage programs
	Development of defense testing tools and product maintenance processes

4. Investment in intelligent automation:

Due to the shortage of manpower, significant business growth, and environmental requirements for energy conservation and waste reduction, Drewloong continues to invest in the planning of automation equipment. We adopt electronic and automated processes to create a paperless environment, while actively implementing operational efficiency analysis and production improvement. When it comes to operational systems, testing equipment, and even automation environments, no efforts are spared to improve competitiveness and fulfill the commitment to environmental improvement.

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

1. Short-term business development plan

A. The Company satisfies the needs of customers with quality, delivery time, price and service on the basis of existing orders. At the same time, leveraging its own competitiveness, the Company is actively pursuing the development of additional new product lines, including securing structural component orders for Airbus A220, A320, and A350 programs. In parallel, the Company is expanding into other aerospace sectors such as component manufacturing for the space industry, structural development for unmanned aerial vehicles (UAVs), and the application and research of advanced aerospace materials. These efforts aim to enhance market competitiveness and capitalize on future industry trends.
B. In terms of international market development, in addition to North America currently, the Company will strengthen business development in Europe and Asia, and aim to develop business ratios in the three markets of the United States, Europe, and Asia.
C. Taking advantage of our existing production technologies and capabilities, we focus on the upgrade of defense industry products and the development of indigenous defense manufacturing. At the same time, we are advancing toward technological enhancement and resource integration to strengthen our overall competitiveness.
D. With the completion of the newly established hard metal heat treatment and surface treatment production lines, the Company will fully utilize such capacity to expand new product development and manufacturing scope.

2. Long-term business development plan

The Company possesses the technical capacity for precision machining, sheet metal forming, and special aerospace manufacturing processes in the international aerospace industry supply chain as a manufacturer capable of providing fully processed aerospace components (Finished parts), and through continuous technological advancement, we have expanded our production from small assemblies to large integrated assemblies. This development enhances our manufacturing capabilities, reinforces our critical role in the global aerospace supply chain, and ensures steady business growth.

In terms of production strategy, the Company actively collaborates with domestic aerospace assembly manufacturers to enhance the competitiveness of our national aerospace industry through supply chain integration. Leveraging our comprehensive technical resources and systematic management capabilities, we ensure high efficiency and stability in our production processes. These efforts in turn reinforce the overall strength of the domestic aerospace sector and lay a solid foundation for future industry upgrades. At the same time, we are committed to supporting the growth of our suppliers by fostering collaborative opportunities that drive development across the entire supply chain. Through a mutually beneficial supply network, and by applying our extensive resources and experience in the aerospace industry, we are steadily expanding into the defense sector, unmanned aerial vehicles (UAVs), and satellite component development—creating lasting industrial value and facilitating knowledge transfer.

In response to the stringent technical requirements of the global aerospace industry, the Company

continues to develop advanced aerospace special process technologies, such as hard metal heat treatment and surface treatment, to expand product diversity and enhance value-added capabilities. Looking ahead, the Company will continue to focus on high-quality manufacturing, innovative technologies, and strategic partnerships to promote the domestic aerospace industry onto the international stage, strengthen overall supply chain competitiveness, and achieve its sustainable growth objectives.

II. Overview of the market and production and sales

(I) Market analysis

Locations where products (services) are mainly sold (provided)

Unit: NTD thousand; %

YearSales area	2025		2024
	Net sales revenue	Percentage of net sales revenue (%)	Net sales revenue	Percentage of net sales revenue (%)
USA	420,766	62.72	389,247	44.67
Taiwan	187,731	27.98	391,488	44.92
France	-	-	33,318	3.82
Others	62,368	9.30	57,399	6.59
Total	670,865	100.00	871,452	100.00

2. Market share

The Company has long-term cooperation with world-renowned aircraft structure manufacturers, such as Spirit and Safran, as well as domestic leading aviation manufacturers, Aerospace Industrial Development Corporation (AIDC), and EVA AIRWAYS CORPORATION (EVAAIR). Both of our delivery quality and process technology have won the highest praise. Trusted by customers, the Company is a long-term strategic partner with a certain position in the industry. The Company is a supplier of customized aerospace spare parts. Due to the huge scale of the international aerospace market, the market share depends on the sales of the products of major terminal manufacturers. There is no relevant information on the market share for reference.

3. Future supply, demand and growth of the market

According to long-term forecasts by Boeing for the global aviation industry over the next 20 years (2025-2044), global air passenger traffic is expected to grow at an average annual rate of $4.2\%$ , with demand for approximately 43,600 new aircraft. Single-aisle aircraft are expected to dominate demand, accounting for about $76\%$ of total orders. Meanwhile, Airbus projects an average annual growth rate of $3.6\%$ in global air passenger traffic over the same period, with total new aircraft demand estimated at approximately 43,420 units. Single-aisle aircraft will remain the primary segment, accounting for about $79\%$ of total demand. Based on the projections from these two leading aircraft manufacturers, global aircraft demand is expected to maintain a stable growth trend over the next two decades, with the majority of demand driven by Asia, particularly India and Southeast Asia.

That said, the future relationship between supply and demand and the prospects in the aerospace industry are still subject to market changes, technological developments, and environmental factors. The Company needs to maintain agility, actively respond to changes, and ensure our competitive advantage through technological innovation, cost control and precise understanding of customer needs.

4. Competitive niche

(1) The management and R&D teams have extensive experience in the industry

The Company has been engaged in R&D and innovation in the aerospace field since its inception, and the R&D capabilities have been recognized by major international manufacturers. In addition, the Company has maintained good interaction with upstream and downstream manufacturers, and is able to quickly grasp the pulse of industry trends, market demands, and technological advancements. The Company also implements the customer-oriented business philosophy and develops product processes in line with customers' needs, which helps improve customers' dependence and stability on the Company.

(2) Advanced process integration and rapid product development capabilities

The Company possesses a comprehensive and self-developed manufacturing process system, encompassing precision machining, sheet metal forming, special processes, and assembly, enabling full in-house production and effective control over costs and lead times. Leveraging flexible capacity allocation and diverse processing capabilities, the Company is able to provide customized solutions tailored to customer needs, thereby enhancing delivery flexibility and competitiveness. In recent years, the Company has continuously introduced smart manufacturing, automation equipment, and data-driven quality management systems to further improve production efficiency, stability, and cost effectiveness. At the same time, it collaborates with customers in the co-development of new processes and products, strengthening long-term partnerships and expanding market share.

(3) Long-term cooperation with world-renowned aerospace manufacturers and as a trusted partner for customers

The Company has long-term cooperation with major customers, continued to invest in R&D, purchase of new production equipment and improvement of production processes, and proper cost control. Our product quality, delivery, price and service are deeply favored by customers.

The Company has developed a good tacit understanding of cooperation with major customers, and continues to cooperate in the development of various spare parts for new types of aircraft. The Company has been awarded the Best Quality and Delivery Award, Excellent Supplier, and World Best Supplier Award from the US-based Spirit AeroSystems Holdings and the US-based ATLAS for many times, and has become a highly trusted strategic partner of customers.

(4) Our third plant supports capacity expansion and business upgrading.

The Company's third plant, established in the Renwu Industrial Park, is expected to become a key driver of its medium- to long-term growth. In addition to expanding existing production capacity, the facility will introduce advanced processes such as Complex Sub-Assembly to support new business development and process upgrades. As the new plant is located in the same area as the Company's existing facilities, it enables the sharing of equipment resources, optimized capacity allocation, and efficient workpiece transfer, enhancing overall production efficiency and reducing operating costs.

(5) The aerospace industry has gradually matured and competitiveness is enhanced through division of tasks.

With the aerospace industry gaining increasing attention domestically, both the government and the private sector are actively involved in related business activities. Therefore, not only can more abundant resources be obtained through resource integration, but also more business opportunities can be acquired through active participation in international cooperation projects. Furthermore, the Company continues to collaborate with domestic manufacturers in joint bidding efforts to maximize the benefits of industry chain integration, enhance overall competitiveness, and strengthen its influence within the global aerospace supply chain.

Favorable and unfavorable factors for development prospects and countermeasures

(1) Favorable factors

A. Steady growth in the global aerospace market with long-term contracts ensuring stable supply.

According to the Aviation Market Outlook Report from 2025-2044 released by Boeing and Airbus, the global demand for new aircraft will continue to increase in the next 20 years. For the pursuit of price and profit optimization, customers in the aerospace industry have signed long-term contracts of 5-10 years. This long-term contract can give the supply chain sufficient room for cost improvement planning and create a win-win situation between supply and demand.

B. Government policy support positioning the aerospace industry as a key national strategic sector

The government has identified the aerospace industry as a critical component of national industrial development and continues to support domestic aerospace manufacturers in enhancing their technological capabilities. It also promotes the integration of resources among domestic suppliers to establish a high value-added system manufacturing ecosystem. These efforts aim to assist local companies in expanding into the global aerospace market and to position Taiwan as a strategic hub for the aerospace industry in the Asia-Pacific region.

C. Rising demand for airbus single-aisle aircraft drives supply chain expansion.

Becoming a member of the Airbus supply chain has been one of the Company's goals. According to Airbus forecasts, global demand for single-aisle aircraft is expected to reach 34,250 units over the next 20 years (2025-2044), with production of the A320 family anticipated to steadily increase, reaching 75 units per month by 2027. As production ramps up, establishing dual-source suppliers is one viable strategy to mitigate the risk of overreliance on a single supplier. This trend presents the Company with a significant opportunity to leverage its comprehensive manufacturing capabilities and extensive experience to secure a role within the Airbus supply chain.

D. Shift in the global aerospace supply chain increases opportunities for domestic suppliers

Amid geopolitical shifts and industrial restructuring, the global aerospace supply chain is gradually shifting from China to other regions in Asia-Pacific. Taiwan's aerospace manufacturing industry, supported by stable quality, mature technology, and cost advantages, has become an important alternative supply source for many leading international aerospace companies. In response, the Company continues to enhance its specialized process capabilities, improve production efficiency, and enhance supply chain integration to meet the high standards of global customers. Through these efforts, it aims to further expand its market share and reinforce its long-term competitive advantage.

(2) Unfavorable factors

A. Limited domestic demand and dependence on export markets.

The domestic aerospace market in Taiwan is relatively limited, with demand primarily concentrated among a small number of aircraft manufacturers and maintenance providers. As a result, the scale of domestic demand is insufficient to support long-term growth, and industry participants must rely heavily on export markets.

Countermeasures

The Company possesses fully integrated manufacturing capabilities for aerospace structural components and continues to strengthen long-term strategic collaborations with internationally recognized aircraft structure manufacturers. It also actively develops new products and technologies to enhance overall manufacturing capabilities and cost competitiveness. By proactively expanding its international customer base, the Company aims to diversify its portfolio, increase global market share, and reduce the risks associated with reliance on a single market.

B. Emerging aerospace manufacturing clusters in Southeast Asia.

Southeast Asia is gradually developing into an emerging aerospace manufacturing hub, driven by lower labor and land costs, as well as proactive government support for the aerospace industry. In recent years, several major international aerospace companies have established or expanded production facilities in countries such as Vietnam, Malaysia, and Indonesia, accelerating the southward shift of the supply chain. This trend has created pricing pressure and intensified competition for orders for Taiwan's aerospace manufacturers.

Countermeasures

The Company keeps track of industry trends and market movements, continues to invest in process technology research and development, upgrades the technical level and product development capability, improves the process to reduce costs, increase market competitiveness, and create a competitive niche that competitors cannot surpass in a short period of time. On the other hand, we change the competition model and adopt the cooperation model to ensure its own interests.

C. Sustained pressure from rising raw material costs.

Although global air passenger traffic has gradually recovered to pre-pandemic levels, aerospace raw material prices continue to rise due to factors such as geopolitical tensions, wars, and inflation. These factors have adversely impacted cost control across the industry.

Countermeasures

The Company continues to formulate optimal procurement strategies based on customers' long-term demand forecasts and delivery schedules to ensure a stable supply of raw materials. In addition, through process optimization and cost analysis management, the Company enhances production efficiency and mitigates the risks associated with rising costs.

D. Impact of geopolitical factors on customers' outsourcing strategies

Among rising global geopolitical risks, regional instability may influence the outsourcing strategies and supply chain configurations of international aerospace manufacturers, in turn increasing industry uncertainty.

Countermeasures

The Company continuously monitors geopolitical developments and the strategic movements of its key customers, enabling flexible adjustments to market positioning and capacity allocation. It also conducts advance risk assessments and contingency planning. Through a multi-regional deployment strategy, the Company actively expands its customer base in Europe and the Asia-Pacific region, while seeking to secure orders for aircraft programs from Airbus, Bombardier, and Gulfstream Aerospace. These efforts aim to diversify market risks and ensure stable long-term growth.

(II) Major uses and production processes of main products

Important uses of the main products

Main product categories	Key Uses and Applications
Aircraft structural components	Used for assembling the airframes of Boeing B737Max, B747, B767, B777, B777X, B787, A220 and other aircraft.
	Used for assembling LEAP/1A and LEAP/1B aircraft engines.
	The AIRBUS A350 take-off and landing gear.
Aircraft	Used for the aerospace industry.
	Used for the aerospace industry's production.
Aircraft	Used for the aerospace industry's production.
	Used for the aerospace industry's production.
	The AIRBUS A350 take-off and landing gear.

2. Production process of main products

(III) Supply of main raw materials

Name of main raw material	Name of supplier	Circumstances of provision
Aluminum sheet and aluminum extrusion	Company A	Good
Titanium alloy plate	Other companies	Good

(IV) List of major suppliers or customers for purchase or sales

Name of suppliers that accounted for more than $10\%$ of total purchases in any one of the most recent two years, and the amount and percentage of purchase, and explain the reasons for such increase or decrease:

Unit: NTD thousand; %

Item number	2025				2024
	Name	Amount	Percentage of net purchases of the whole year	Relationship with the issuer	Name	Amount	Percentage of net purchases of the whole year	Relationship with the issuer
1	Company A	60,379	67.86	None	Company A	139,422	67.21	None
2	Others	28,603	32.14	None	Others	68,026	32.79	None
	Net purchase	88,982	100.00		Net purchase	207,448	100.00

Explanation of increase/decrease:

The decrease was mainly due to overseas customers being in an inventory destocking phase in 2025 as a result of the Boeing strike. Accordingly, the Company adjusted its inventory levels, leading to a reduction in overall purchases in 2025 compared to 2024.

Names, sales amount, and percentage of customers that have accounted for more than $10\%$ of total sales in the most recent two years, and explain the changes:

Unit: NTD thousand; %

Item	2025				2024
	Name	Amount	Percentage of net sales of the whole year	Relationship with the issuer	Name	Amount	Percentage of net sales of the whole year	Relationship with the issuer
1	Company A	353,752	52.73	None	Company A	313,093	35.93	None
2	Company B	113,364	16.90	None	Company B	254,370	29.19	None
3	Others	203,749	30.37	None	Others	303,989	34.88	None
	Net sales	670,865	100.00		Net sales	871,452	100.00

Explanation of increase/decrease:

There have been no material changes in the Company's major customers over the past two years. The decrease in revenue in 2025 was primarily attributable to the completion of certain domestic projects at the end of 2024.

III. Number of employees, average years of service, average age, and distribution of education background in the past two years and as of the publication date of this annual report

March 31, 2026; unit: person; %

Year		2025	2024	2026, as of March 31
Number of employees	On-site personnel	209	233	208
	Administrative staff	67	72	68
	Foreign worker	34	52	38
	Total	310	357	314
Average age		36.85	35.18	36.92
Average years of service		7.13	5.08	7.17
Education background ratio %	Doctoral degree	-	-	-
	Master's Degree	4.84	4.48	4.78
	Junior College	54.52	54.06	54.46
	Senior high school	39.35	40.34	39.49
	Below high school	1.29	1.12	1.27

IV. Information on environmental protection expenditure

Losses due to environmental pollution in the most recent year and as of the publication date of this annual report (including compensation and environmental audit results for violations of environmental laws and regulations, the date of punishment, the name of the punishment, the provisions of the violation, the details of the violation, and the details of the punishment). Also, disclose the estimated amount that may occur currently and in the future, and responsive measures. If unable to provide a reasonable estimation, an explanation on the facts for not able to make the estimation shall be given:.

No.	Item	Description
1	Violating Entity	Drewloong Precision, Inc.
2	Reference No.	Kao Environmental Bureau Waste Management No. 11531244500
3	Date of Violation	January 27, 2026
4	Date of Penalty	March 16, 2026
5	Competent Authority	Kaohsiung Environmental Protection Bureau
6	Violated Articles and Regulatory Provisions	1. Article 31, Paragraph 1, Subparagraph 1 of the Waste Disposal Act: Operations may begin only after the review and approval of an industrial waste disposal plan submitted to the special municipality, county or city competent authority or the organization commissioned by the central competent authority; this regulation shall also apply to the modification of matters related to the production and disposal of industrial waste. Violation: The laboratory was not included in the registered industrial waste disposal plan, and the plant layout did not match the actual site conditions. In addition, materials or wastes such as concentrated sulfuric acid and waste solvents exceeded the approved maximum monthly generation volume. 2. Article 31, Paragraph 1, Subparagraph 2 of the Waste Disposal Act: The format of the industrial waste disposal plan referred to in subparagraph 1 of the foregoing paragraph and the items required to be stated in the plan shall be enacted by the central competent authority in consultation with the central industry competent

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Violation: The monthly waste generation volume was incorrectly reported under an incorrect classification code.

Article 6, Paragraph 1, Subparagraph 4 of the Regulations for Occupational Safety and Health Facilities in Construction: Storage locations, containers, and facilities shall be clearly labeled in Chinese with the names of the waste.

Violation: The waste storage area was not clearly labeled with the names of the waste.

Article 36 of the Waste Disposal Act: Methods and facilities for storage, clearance and disposal of industrial waste shall meet regulations designated by the central competent authority.

Article 7, Paragraph 1, Subparagraph 2 of the Regulations for Occupational Safety and Health Facilities in Construction: Waste shall be properly sealed in fixed packaging materials or containers and stored in designated storage facilities. It shall be classified and labeled with the name of the waste-generating enterprise, storage date, quantity, composition, and appropriate hazardous waste identification markings.

Violation: Hazardous industrial waste containers were not individually labeled with the required names and information.

Article 36 of the Waste Disposal Act: Methods and facilities for storage, clearance and disposal of industrial waste shall meet regulations designated by the central competent authority.

Article 11, Paragraph 1, Subparagraph 4 of the Regulations for Occupational Safety and Health Facilities in Construction: Warning signs with a white background, red lettering, and black borders shall be clearly displayed in conspicuous locations, and appropriate hazard prevention equipment shall be provided.

Violation: Hazardous industrial waste was not labeled with the required warning signs. |
| --- | --- | --- |
| 7 | Penalty/Fine | NT$ 192,000 |
| 8 | Future Mitigation Measures | 1. The Company has revised its industrial waste disposal plan and submitted a change application. Due to documentation omissions, once the plan is approved, future reporting will be conducted in accordance with the approved requirements. The preparation of the waste disposal plan, outsourced to a certified engineer, incurred a one-time cost of approximately NT$50,000.

The incorrect reporting was caused by human error. The Company has reviewed at least two years of historical reporting records and has immediately corrected the identified errors. No additional costs are expected for these corrective actions.
On February 11, 2026, a comprehensive inspection of the waste storage areas was conducted, and deficiencies in labeling were immediately rectified. Internal procedures were also revised to strengthen control measures. The improvement involved the installation of on-site signage, with a one-time material cost of approximately NT$8,000. |

V. Labor-management relations

(I) List the Company's various employee welfare measures, continuing education, training, and retirement systems and their implementation, as well as the agreements between labor and management and various employee rights protection measures:

Employee welfare measures

In addition to the general benefits such as labor insurance, health insurance, group insurance, and pension payment, the Company also provides benefits such as annual health check-ups, Family Day activities, wedding gift, funeral subsidy, maternity gift, birthday gift, three festivals gift, employee travel subsidy, injury and illness compensation, employee new home benefit, and employee stock option system, The Company also provides remuneration to employees depending on operating conditions.

Continuing education and training

In order to foster quality human resources and improve work standards, the Company establishes orientation and on-the-job training programs based on the annual training plan. On-the-job training is further divided into internal and external training to support employees' continuous learning and development, and to cultivate their core competencies.

Retirement system

(1) New Labor Pension System:

The Company has implemented a pension plan in accordance with the Labor Pension Act, under which it contributes 6% of each employee's monthly wages to the employee's individual pension account maintained by the Bureau of Labor Insurance. Employees may also elect to make voluntary contributions of up to 6% of their monthly wages, which are withheld by the Company and remitted to their individual pension accounts.

(2) Old Labor Pension System:

The Company established a Labor Pension Reserve Supervisory Committee in August 2023. In accordance with the old pension regulations, the Company contributes 6% of employees' monthly salaries to a pension reserve account maintained with the Bank of Taiwan. Employees are entitled to claim pension benefits upon retirement.

Agreements between employers and employees, and various employee rights protection measures.

In order to protect the rights and interests of employees and coordinate the relationship between the employer and the employees, the Company is committed to strengthening the harmony between labor and management and adopting two-way communication and coordination to solve the problem. So far, there have been no major labor disputes pending.

We protect employees' legal rights and respect employees' opinions in accordance with the law. Coordination, communication, and expression of opinions are available through meetings and employee opinion boxes to maintain good labor-management relations.

(II) Losses incurred as a result of labor-management disputes in the most recent two years and as of the printing date of this annual report (including labor inspection results showing violations of items in Labor Standards Act. These matters shall be listed with punishment date, reference number, articles of regulations violated, article contents and punishment details), and disclose the estimated amount that might incur at present and in the future, and their countermeasures. If unable to give a reasonable estimation, an explanation of the facts for not being able to provide a reasonable estimation shall be given: None.

VI. Cyber security management

(I) Describe the IT security risk management framework, IT security policies, specific management plans, and resources invested in IT security management:

Cyber communication security risk management framework

The Company has set up a cross-departmental Information Security Committee. The heads of each unit serve as members of the Information Security Committee, with the President as the chair, the IT manager as the executive member, and the Audit Office as the information security auditor. In addition, on May 9th, 2023, one Information Security Officer and one Information Security Personnel were appointed. They would develop the cyber security policy and information security risk assessment, hold regular meetings to review the implementation results of relevant policies, risk assessments, and management measures, and report to the Board of Directors on a regular basis every year.

Cyber security policy

In order to ensure the confidentiality, integrity and continuity of business operations, the Company has established an information security policy with reference to its business needs. The policy is to be adhered to by all employees and vendors of the Company. This is to prevent any unauthorized access, tamper, destroy, or improper disclosure of the Company's information assets, and establish a safe and

reliable information system environment to ensure the sustainable operation of the Company's business. In addition, the Circular Operating Procedures for the computerized information system of the Company's internal control system is used to provide employees with more consistent information operations. Information security audits are conducted regularly every year to ensure the implementation of information security.

Specific management plans and resources invested in IT security management
(1) Implementation of ISO/IEC 27001 : 2022
(2) A firewall is installed to control the external/internal and internal/external network restrictions.
(3) The network shall be used in segments to reduce the risk of poisoning.
(4) Install anti-virus software to protect the personal computer from poisoning.
(5) USB access control.
(6) The system is updated regularly.
(7) Establish a system backup mechanism and implement off-site backup.
(8) Authorization for access to the Directory is based on the job function level.
(9) Personal computer permissions are controlled, and computer equipment is kept by a designated person, and an account number and password are set.
(10) Security measures in the IT room.
(11) Conduct information security training every year, and promote information security information from time to time.
(12) Conduct backup and restoration drills on a yearly basis.
(13) Inventory the system authority on a yearly basis.
(14) Review the personal computer information security status every year.

(II) In the most recent year and as of the publication date of this annual report, the Company has suffered losses due to major IT security incidents, the possible impacts thereof, and the countermeasures. If it is impossible to estimate reasonably, please specify the facts: None.

VII. Material contract

Nature of contract	Parties involved	Start and end dates of the contract	Main content	Restrictive clauses
Lease contract	Taiwan Sugar Corporation	Nov., 2019–Oct., 2039	Land at Shande Section, Renwu District, Kaohsiung City	Fixed rent: 2015 total land value5.25% Floating rent: Total land value declared for the year 1%
	Taiwan Sugar Corporation	Nov., 2022–Oct., 2042	Land at Shande Section, Renwu District, Kaohsiung City
	Taiwan Sugar Corporation	Dec., 2019–Dec., 2039	Land at Shande Section, Renwu District, Kaohsiung City
	Taiwan Sugar Corporation	Mar., 2018 –Mar., 2028	Land at Zhuyuan Section, Renwu District, Kaohsiung City	Fixed rent: Calculated based on 5.25% of the total land value reported in 2015 plus the rent price index, and floating rent levied at 1% of the total land value reported for the period. If the land value tax levy for the land changes to be based on the general land tax, a floating rent is collected by taking 5.5% of the total land value declared for the current period.
	Taiwan Sugar Corporation	June, 2018 –June, 2028	Land at Zhuyuan Section, Renwu District, Kaohsiung City
	Taiwan Sugar Corporation	June, 2022–June, 2042	Land at Renxin Section, Renwu District, Kaohsiung City	(1) Fixed rent: Calculated at 4.5% of the total amount of land value declared in the contract period, and will not be adjusted when the declared land value is adjusted. The contract period shall be adjusted upon expiration of each 5-year period based on the amount obtained by dividing the current year and month consumer price and rent index published by the Directorate-General of Budget, Accounting and Statistics, Executive Yuan by the annual growth rate of the monthly index of the previous 5 years. (2) Floating rent: Calculated and collected at 5.5% of the total declared value of the contracted land each year, and will be adjusted when the declared land value is adjusted. If the land price is re-regulated by the government during the duration of this contract, both parties agree to declare the land price at 80% of the announced land value for the current period. The floating rent for the year shall be calculated separately based on the old and new land value declared.
	Taiwan Sugar Corporation	Dec., 2022–June, 2042	Land at Renxin Section, Renwu District, Kaohsiung City
	Taiwan Sugar Corporation	Dec., 2022–June, 2042	Land at Renxin Section, Renwu District, Kaohsiung City
Building contract (factory construction)	Tai Jhou Construction Co.	Feb., 2024–Aug., 2025 (The project has not yet been completed.)	New factories and office buildings	None
Building contract	Chyau Shang Water and Electricity Engineering Company	Feb., 2024–Oct., 2025 (The project has not yet been completed.)	Electrical, plumbing, and fire protection engineering for new plant and office building construction	None
Building contract	King Sun New Tech Co. Ltd.	Oct., 2024–Aug., 2025 (The project has not yet been completed.)	Solar photovoltaic system for new plant construction	None
Sales contract	Kao Hsin Engineering Co., Ltd.	Jan. 2026– Dec. 2027	Factory Building Sale and Transfer of Surface Rights	None

Five. Review and Analysis of Financial Position and Financial Performance, and Risk Management

I. Financial position

The main reasons for the material changes in the Company's assets, liabilities and equity in the past two years and the impacts thereof as well as future countermeasures:

Unit: NTD thousand

Item\Year	2025	2024	Difference
			Amount	Percentage (%)
Current assets	1,841,136	2,119,775	(278,639)	(13.14)
Property, plant and equipment	764,543	615,786	148,757	24.16
Intangible assets	17,784	18,295	(511)	(2.79)
Other assets	341,131	353,819	(12,688)	(3.59)
Total assets	2,964,594	3,107,675	(143,081)	(4.60)
Current liabilities	637,456	254,466	382,990	150.51
Non-current liabilities	302,879	764,013	(461,134)	(60.36)
Total liabilities	940,335	1,018,479	(78,144)	(7.67)
Share capital	400,000	390,000	10,000	2.56
Additional paid-in capital	109,648	109,648	-	-
Retained earnings	1,514,611	1,589,548	(74,937)	(4.71)
Total equity	2,024,259	2,089,196	(64,937)	(3.11)
1. The main reasons and impacts of major changes (changes by more than 20% and NT$10 million between the two previous periods):
(1) Increase in property, plant, and equipment: Mainly due to the construction of new plant facilities.
(2) Increase in Current Liabilities: Mainly due to the reclassification of convertible bonds to current liabilities and a decrease in payables for equipment.
(3) Decrease in Non-current Liabilities: Mainly due to the reclassification of convertible bonds to current liabilities.
2. Future plans for those with significant influence:
The above changes have no material adverse effect on the Company, and the overall performance of the Company has no significant abnormality, so there is no need to formulate responsive plans.

II. Financial performance:

The main reasons for the major changes in the operating revenue, operating net profit and net profit before tax in the past two years, the expected sales volume and basis, the possible impact on the Company's future financial business, and the countermeasures.

Unit: NTD thousand

Year Item	2025	2024	Difference
			Amount	Percentage (%)
Net operating revenue	670,865	871,452	(200,587)	(23.02)
Operating costs	439,138	443,615	(4,477)	(1.01)
Operating gross profit	231,727	427,837	(196,110)	(45.84)
Operating expenses	93,811	115,900	(22,089)	(19.06)
Operating profit	137,916	311,937	(174,021)	(55.79)
Non-operating income and expenses	8,587	43,460	(34,873)	(80.24)
Net profit before tax	146,503	355,397	(208,894)	(58.78)
income tax expense	26,440	71,153	(44,713)	(62.84)
Net profit for this period	120,063	284,244	(164,181)	(57.76)
Total comprehensive income for the period	120,063	284,244	(164,181)	(57.76)
1. The main reasons and impacts of major changes (changes by more than 20% and NT$10,000 million between the two previous periods): (1) Decrease in Net Operating Revenue: Mainly due to the completion of certain domestic projects by the end of 2024. (2) Decrease in Gross Profit and Operating Income: Mainly due to the decrease in net operating revenue. (3) Decrease in Non-operating Income and Expenses: Mainly due to fluctuations in the USD exchange rate, resulting in reduced foreign exchange gains. (4) Decrease in Profit Before Tax: Mainly due to the decrease in gross profit. (5) Decrease in Income Tax Expense, Net Profit, and Total Comprehensive Income: Mainly due to the decrease in profit before tax. 2. The expected sales volume and basis, the possible impact on the Company's future financial business, and countermeasures: Not applicable as the Company has not announced financial forecasts.

III. Cash flow

(I) Analysis of changes in cash flow in the most recent year (2025)

Unit: NTD thousand

Item\Year	2025	2024	Increase/decrease(%)
Cash flow ratio (%)	43.18	85.03	(49.22)
Cash flow adequacy ratio (%)	83.04	95.14	(12.72)
Cash flow reinvestment ratio (%)	2.44	0.88	177.27
Analysis of changes: (1) Decrease in Cash Flow Ratio: Mainly due to the reclassification of convertible bonds as current liabilities. (2) Decrease in Cash Flow Adequacy Ratio: Mainly due to the construction of a plant facility. (3) Increase in Cash Reinvestment Ratio: Mainly due to an increase in net cash flows from operating activities

(II) Improvement plan for liquidity issues in the most recent year: The Company did not have any issues related to liquidity issues.
(III) Liquidity analysis for the coming year (2026)

Unit: NTD thousand

Opening cash balance①	Expected full-year net cash flow from operating activities②	Expected net cash flow from investing activities throughout the year③	Expected net cash flow from financing activities throughout the year④	Projected cash surplus (deficit)①+②+③+④	Remedial measures for anticipated cash deficits
					Financing plan	Financial planning
478,622	337,360	(196,630)	(128,422)	490,931	Not applicable	Not applicable
Analysis of cash flow changes in the coming year: (1) Operating activities: Mainly due to the expected net profit for 2026, resulting in net cash inflows from operating activities. (2) Investing activities: Mainly due to plant construction, resulting in net cash outflows from investing activities. (3) Mainly due to the expected payment of cash dividends, resulting in net cash outflows from financing activities. Remedial measures and liquidity analysis for expected cash deficit: No projected cash deficit.

IV. Impacts of major capital expenditures in the most recent year on financial operations: None.

(I) Significant capital expenditure and the source of funds :

Project Item	Actual or Expected Source of Funds	Scheduled Completion Date	Total Required Funding	Actual or Expected Fund Utilization Progress
				2025		2024
				Actual	Expected	Actual	Expected
Construction of new plant and acquisition of machinery and equipment	Convertible corporate bonds and internal funds	114.12.31 (Construction delay / project not yet completed)	775,000	465,700	229,162	309,300	255,428

(II) Anticipated Potential Benefits:

Although the aerospace industry has encountered some short-term supply chain disruptions, forecasts from the world's two leading aircraft manufacturers, Boeing and Airbus, indicate sustained demand for new aircraft over the next 20 years. In light of the consistently high levels of backlog orders held by both companies, the long-term growth trend of the industry remains unchanged. In addition to constructing a new plant to expand capacity in response to future business growth, the Company will also introduce more advanced manufacturing processes to support new business development and process upgrades. In the future, the new plant is expected to enable advanced processes and technologies to secure additional business opportunities, which are anticipated to have a positive impact on the Company's financial performance and operations.

V. Main reasons for profit or loss, improvement plans, and investment plans for the coming year:

(I) Policies on reinvestment:

The Company's management team reinvests based on operational needs or consideration of the Company's future growth. Conduct detailed evaluations on the organization pattern, investment objectives, establishment location, market status, business development, shareholding, and financial position, and formulate investment case evaluation recommendations for the decision-making authorities to take as the basis for investment decision-making; in addition, the Company also keeps abreast of the operating conditions of the invested businesses and analyze the investment results for decision-making authorities to facilitate follow-up evaluations management after the investment.

(II) Main reasons for the profit or loss from reinvestment in the most recent year and improvement plans:

Unit: NTD thousand

Investee	Recognition of investment gains/losses of the investees in 2025	Main reason for profit or loss	Improvement plan
Drewloong Technologies, Inc.	30,166	The company owns the key technology for surface treatment of aerospace parts and benefits from the long-term stable growth of the aerospace industry.	None

(III) Investment plans for the next year: None.

VI. The risk matters shall be analyzed and assessed for the following matters in the most recent year up to the publication date of this annual report:

(I) Impacts of changes in interest rates, exchange rates, and inflation to the Company's profit and loss, and future countermeasures:

Effect of changes in interest rates

The interest expenses of the Company in 2024 and 2025 were NT$7,856 thousand and NT$14,392 thousand, respectively. The increase in interest expense in 2025 mainly consisted of interest on corporate bonds and interest expenses recognized in relation to right-of-use assets for land leases under IFRS 16.. The interest expenses accounted for 0.90% and 2.15% of revenue in 2024 and 2025, respectively, indicating that interest expenses did not have a significant impact on the Company's profit or loss.

Effect of exchange rate fluctuations

The Company had foreign exchange gains (loss) of NT$25,077 thousand and (5,410) thousand in 2024 and 2025 respectively, accounting for 2.88% and 0.81% of the operating revenue, respectively. This

is mainly due to the fluctuation of USD/NTD exchange; the Company's products are mainly exported, raw materials, machinery and equipment are mostly imported from abroad, and foreign currency receipts and payments offset against each other, which can reduce some exchange rate fluctuation risks. In addition, the Finance Department also collects exchange rate information from time to time to grasp the exchange rate trend and take hedging or flexible measures in a timely manner. We adjust foreign exchange deposits to avoid exchange rate risks.

Inflation impact

Under the government's policies to stabilize the financial market and maintain price stability, the Company's operations and profit or loss were not affected by inflation in 2025. In the future, we will continue to pay attention to the inflation situation and the impact of changes in the price index on the Company, and make appropriate purchases at an appropriate time.

(II) Policies on engaging in high-risk and high-leverage investments, loans to others, endorsements and guarantees, and derivative transactions, main reasons for profit or loss, and countermeasures in the future:

The Company has always adhered to the principle of focusing on its own business and being pragmatic in operating its business. The financial policy has been prudent and conservative, and has not engaged in high-risk and high-leverage investments.

The Company has defined the "Procedures for Lending Funds to Others," "Procedures for Endorsements and Guarantees" and "Procedures for Handling Acquisition or Disposal of Assets" to serve as the basis for the Company's lending, endorsement/guarantee, and derivative instrument transactions. As of the publication date, there has been no loaning of funds to others, no endorsement/guarantee for others, and no trading of derivatives.

(III) Future R&D plans and expected R&D expenses:

In order to continuously develop new products and technologies, the Company's R&D expenses have accounted for approximately 3~6% of its operating revenue in the past three years. It is expected that approximately 3~5% of operating revenue will be invested in R&D in the next year. In addition, the Company will continue to win orders for more new products, so that the Company will be more competitive and unique in the market, and continue to maintain advantages under the strong pressure of international competition.

(IV) Impacts of important domestic and foreign policies and legal changes on the Company's financial operations and countermeasures:

The Company's operations are handled in accordance with relevant domestic and foreign laws and regulations, and it will pay close attention to important policy and legal changes at home and abroad that are related to the Company's operations, and actively cooperate and adjust relevant measures. As of the publication date of the annual report, changes in important domestic and foreign policies and laws did not have a material adverse effect on the Company's financial operations.

(V) Impacts of technological changes (including IT security risks) and industry changes on the Company's financial operations and countermeasures:

In addition to the advanced manufacturing technology possessed by the Company itself, the Company also obtains industry information through major international aerospace manufacturing companies. In addition, the Company actively establishes good relationships with customers and is able to grasp the latest information on the market. The Company pays attention to any industrial technology dynamics and evaluates its impact to the company's finance and sales at all times.

The Company established the "Information Security Committee", and formulated the information security policy to ensure the confidentiality and integrity of the Company's important information assets such as data, information, equipment, personnel, and network. Appropriate backup or monitoring mechanisms have been established for systems or equipment and are regularly drilled to maintain their availability.

In recent years and as of the publication date of the annual report, there has been no material impact on the Company's financial operations due to changes in technology, security risks of information and communications, and changes in the industry.

(VI) Impacts of changes in corporate image on corporate crisis management and countermeasures:

Since its inception, the Company has complied with relevant laws and regulations by actively strengthening internal management, improving management quality and performance, and maintaining harmonious labor-management relations in order to continue to maintain a good corporate image. In recent year and as of the publication date of the annual report, there are no events that affect the Company's corporate image.

(VII) Expected benefits and possible risks of mergers and acquisitions and countermeasures:

The Company has no plan to acquire other companies in the most recent year and as of the publication date of this annual report. If there is any situation or plan involving mergers and acquisitions in the future, we will follow the respective operating regulations to evaluate the benefits and control the risks with a prudent attitude, and consider whether it can bring concrete benefits to the company to protect the interests of the Company and shareholders' equity.

(VIII) Expected benefits and possible risks of plant expansion and countermeasures:

According to long-term industry outlooks released by the world's two major aircraft manufacturers, Boeing and Airbus, the global aviation sector is expected to maintain steady growth over the next 20 years (2025–2044), driven by both rising market demand and the ongoing replacement of aging fleets. Boeing and Airbus respectively forecast a demand for 43,600 and 43,420 new aircraft during this period, indicating the steady growth trajectory of the aviation industry.

In light of this, and considering the consistently high backlog of orders held by both manufacturers, a sure sign of steady increase in annual aircraft deliveries, our Company has actively expanded its customer base and product offerings in recent years. As a result, our current plant capacity is expected to become insufficient. To address this, the Company has commenced the construction of a third plant at the Renwu Industrial Park in Kaohsiung City. This facility will support the expansion of existing capacity and facilitate the development of new business lines and manufacturing processes. Furthermore, as the third plant is located in proximity to our current facilities, it allows for optimized deployment of machinery, streamlined workpiece transfers, and more effective production management, thus enhancing operational efficiency and reducing manufacturing costs.

In summary, given the long product life cycles typical in the aerospace sector, the industry's high degree of visibility for long-term growth, and our order book primarily consisting of five- to ten-year contracts, the Company believes the risks associated with this capacity expansion are limited since the new facility is expected to contribute positively to the Company's long-term profitability and competitive positioning.

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

Purchases

The aircraft spare parts produced by the Company are of high quality and high stability. Customers have extremely high requirements for the safety of materials. The Company maintains several suppliers for major raw materials to ensure the stability of the supply source. This can ensure the stability and flexibility of the source of good supply. In the last two years, the Company's purchase value accounted for 67.21% and 67.86% of the Company's purchases. The Company's purchases were mainly concentrated with Company A. This was mainly due to the fact that Company A was a world-renowned manufacturer. In addition to having passed multiple certifications, the prices of the materials it supplied were also very competitive and the output was stable. There had been no shortage or interruption of supply over the years. The Company has established a good long-term cooperative relationship with its major suppliers. The delivery status of the relevant suppliers in the past two years is still good, and there is no shortage, interruption or delay of supply that affects the production operation. The source of goods supply has been stable.

Sales

The sales value of the Company's largest customer in 2024 and 2025 accounted for 35.93% and 52.73% of the Company's net sales, respectively. This is mainly due to the characteristics of the aerospace industry. The global aerospace industry mainly uses Boeing and Airbus services. These two conglomerates dominated the market and monopolized the market. This indirectly resulted in the concentration of the Company's sales to a few aerospace OEMs. The Company will continue to explore new markets and new customers actively and maintain good relationship with existing customers, and continue to reduce risks.

(X) Impacts and risks to the Company in the event of a major transfer of shares by Directors or major shareholders with more than 10% ownership interest, and countermeasures:

In the most recent year and as of the date of printing of the Annual Report, any shares held by Directors or major shareholders with more than 10% ownership interest in the Company were mainly due to adjustments in financial plans, which did not pose significant impacts or risks to the Company's management rights.

(XI) Impacts and risks associated with the change in management on the Company and countermeasures:

There was no change in the management of the Company in the most recent year and as of the publication date of the annual report.

(XII) Litigious and non-litigious matters. List major litigious, non-litigious or administrative disputes that: (1) involve the company and/or any company director, any company supervisor, the general manager, any person with actual responsibility for the firm, any major shareholder holding a stake of greater than 10 percent, and/or any company or companies controlled by the company; and (2) have been concluded by means of a final and unappealable judgment, or are still under litigation. Where such a dispute could materially affect shareholders' equity or the prices of the company's securities, the annual report shall disclose the facts of the dispute, amount of money at stake in the dispute, the date of litigation commencement, the main parties to the dispute, and the status of the dispute as of the date of publication of the annual report.: None.

(XIII) Other important risks and countermeasures being or to be taken: None

VII. Other important matters: None.

Six. Special Disclosure

I. Information on affiliates:
Please refer to the Market Observation Post System (MOPS) (Single Company > Electronic Document Download > Affiliated Enterprises Disclosure Section) for further details.
https://mopsov.twse.com.tw/mops/web/t57sb01_q10

II. Private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None.

III. Other matters that require additional description: None.

IV. If any of the situations listed in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, such situations shall be listed one by one: None.

AI assistant

DPI — Annual Report 2025

52413_rns_2026-05-14_1a3c1a44-f52a-4f90-b427-daf59475d484.pdf

Drewloong Precision, Inc.

2025 Annual Report

Table of Contents

One. Letter to Shareholders

Two. Corporate Governance Report

Three. Capital Overview

Four. Operational Highlights

Five. Review and Analysis of Financial Position and Financial Performance, and Risk Management

Table of Contents

Six. Special Disclosures

Two. Corporate Governance Report

II. The remuneration paid to Directors, President and Vice President in the most recent year was as follows:

1. Remuneration for Directors (including Independent Directors)

2. Remuneration for President and Vice President

Remuneration Range

III. Implementation of corporate governance

(II) Operations of the Audit Committee

Other matters to be recorded:

2-1-1 Greenhouse Gas Inventory Information:

2-1-2 Greenhouse Gas Assurance Information:

I. Capital and shares

(I) Source of capital:

I. Business activities

(I) Scope of business

1. The main business scope of the Company

2. Proportion of business

3. The Company's current products and services

4. New products and services planned to be developed

(II) Industry overview

1. Current status and development of the industry

2. R&D expenses in the most recent year

3. Successfully developed technologies or products in the most recent year

4. Investment in intelligent automation:

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

1. Short-term business development plan

2. Long-term business development plan

II. Overview of the market and production and sales

(I) Market analysis

2. Market share

3. Future supply, demand and growth of the market

4. Competitive niche

(2) Unfavorable factors

Countermeasures

Countermeasures

Countermeasures

Countermeasures

2. Production process of main products

I. Financial position

II. Financial performance:

III. Cash flow

More from DPI

DPI Annual Report 2025