天二科技EVER OHMS

股票代號：6834

Ever Ohms Technology Co., Ltd.

2025

Annual Report

Public information observatory site: https://mops.twse.com.tw/

Ever Ohms Technology Annual Report website: https://www.everohms.com

Publication Date: March 28, 2026

I. Name, professional title, contact number and E-mail address of the spokesperson and agent spokesperson of the company:

Spokesperson

Name: Huang Hung-Chieh

Title: General Manager

Tel: (07)811-6611

E-mail: [email protected]

Acting Spokesperson

Name: Ou Chuan-Fu

Title: Executive Deputy General Manager

Tel: (07)811-6611

E-mail: [email protected]

II. Address and telephone number of head office, branch and plant

Head Office: No. 3, S. 4th Rd., Qianzhen Dist., Kaohsiung City

Tel: (07)811-6611

Kaohsiung Plant: No. 3, S. 4th Rd., Qianzhen Dist., Kaohsiung City

Tel: (07)811-6611

Fax: (07)811-5533

Taipei Branch: 6F, No. 558, Zhongyuan Road, Xinzhuang District, New Taipei City

Tel: (02)2223-3878

Fax: (02)2223-3036

Shenzhen Factory: Unit 607-608, Xinhang Plaza, Huizhan Bay, Fuhai Airport New City, Bao'an District, Shenzhen, Guangdong Province

Tel: (002-86)755-23592003

Fax: (002-86)755-23702048

III. Name, address, telephone number and website of stock transfer institution

Name: Taishin Securities Co., Ltd.

Address: B1, No. 96, Sec. 1, Jianguo N. Road, Zhongshan District, Taipei, Taiwan

Tel: (02)2504-8125

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

IV. Name, firm name, address, telephone number and website of Accountant for issuing the latest annual financial report:

Name of CPA firm: Deloitte Taiwan

Address: 3F, No. 88, Chenggong 2nd Road,

Qianzhen District, Kaohsiung City, Taiwan

Website: https://www2.deloitte.com/tw

CPAs: Wang Teng-Wei, Hsu Kai-Ning

Tel: (07)530-1888

V. Name of the exchange where the overseas securities are listed for trading and the way to inquire about the information of the overseas securities: None

VI. Company website: https://www.everohms.com

Ever Ohms Technology Co., Ltd.

One. Report to Shareholders ... 1
I. 2025 Operating Results ... 1
II. 2026 Business Plans ... 3
III. The future Company’s development strategies, and impacts from the external competition environment, regulatory environment, and macro operating environment ... 5

Two. Corporate Governance Report ... 6
I. Information on directors, general managers, deputy general managers, assistant general managers and heads of departments and branches ... 6
II. Remunerations paid to directors, general managers, deputy general managers, assistant general managers in the most recent years ... 13
III. State of the company's implementation of corporate governance ... 18
IV. Information on the professional fees of the CPAs ... 45
V. Information on replacement of CPAs ... 45
VI. Where the company's chairperson, general manager, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed ... 45
VII. Any transfer of equity interests and/or change in pledge of equity interests by a director, supervisor, manager, or shareholder with a stake of more than 10% during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report ... 46
VIII. Relationship information, if among the company's 10 largest shareholders any one is a related party of another ... 47
IX. The total number of shares and total equity stake held in any single enterprise by the company, its directors, managers, and any companies controlled either directly or indirectly by the company ... 48

Three. Capital Raising Activities ... 49
I. Capital and shares ... 49
II. Issuance of corporate bonds ... 51
III. Issuance of preferred shares ... 51
IV. Issuance of global depository receipts ... 51
V. Issuance of employee share subscription warrants ... 51
VI. Issuance of new restricted employee shares ... 51
VII. Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies ... 51
VIII. Implementation of the company's capital allocation ... 51

Four. Overview of Business Operations ... 52
I. Description of the business ... 52
II. Analysis of the market as well as the production and marketing situation ... 60
III. The number of employees employed for the most recent two fiscal years, and during the current fiscal year up to the date of publication of the annual report ... 66
IV. Disbursements for environmental protection ... 67
V. Labor relations ... 69
VI. Cybersecurity management ... 71
VII. Important contracts ... 75

Five. Review and Analysis of Financial Position and Financial Performance, and Risk Matters ... 76
I. Financial position ... 76
II. Financial performance ... 77
III. Cash flow ... 78
IV. Effects upon financial operations of any major capital expenditures during the most recent fiscal year ... 78
V. The reinvestment policy for the most recent fiscal year, the main reasons for the profits/losses generated thereby, the plan for improving re-investment profitability, and investment plans for the coming year ... 79
VI. Risk matter analysis and assessment ... 79
VII. Other important matters ... 82

Six. Special Items to be Included ... 83
I. Information related to the company's affiliates ... 83

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, disclose the date on which the placement was approved by the board of directors or by a shareholders meeting, the amount thus approved, the basis for and reasonableness of the pricing, the manner in which the specified persons were selected, the reasons why the private placement method was necessary 83
III. Other matters that require additional description 83

Seven. Any of the situations listed in subparagraph 2, paragraph 3, Article 36 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 83

One. Report to Shareholders

I. 2025 Operating Results

(I) 2025 Business Operating Results:

The Company was faced with geopolitical uncertainties in 2025, increased competition, and continued pricing pressure in the passive component market. However, we remained committed to steadily advancing our established strategy, focusing on product structure optimization, improved production efficiency, and expansion into high value-added markets. 2025 revenue grew $13\%$ compared to 2024, primarily driven by product mix optimization and deeper penetration into high-end applications. The company continued to concentrate resources on high-growth, high-barrier markets including AI servers, automotive electronics, new energy, and industrial applications, with a focus on raising average selling prices and improving gross margin structure to counter pricing pressure in commodity products.

In terms of manufacturing, with destocking completed in 2024, both capacity utilization and manufacturing efficiency were expected to improve significantly in 2025. Simultaneously, by integrating the manufacturing strengths of the Nantong production site, we reinforced supply flexibility and delivery stability for standard products, and had successfully expanded the procurement volume of our key customers. The company also continued to advance internal functional specialization — clearly defining responsibilities across R&D, manufacturing, sales, and quality management — to improve decision-making speed and operational efficiency, laying a solid foundation for simultaneous revenue and profit growth in 2026.

(II) Financial incomes, expenditures, and analysis of profitability:

2025 Operating Overview

Comparison of operating results

Unit: NT$ thousands

Item	2025	2024	Increase	%
Net operating revenue	1,430,883	1,267,846	163,037	12.86
Gross profit	256,196	224,757	31,439	13.99
Gross margin	17.90%	17.73%	0.17	0.96
Operating profit	44,674	31,121	13,553	43.55
Profit before tax	56,498	67,233	(10,735)	(15.97)
Profit after tax	44,398	56,767	(12,369)	(21.79)
Basic earnings per share after tax: NTD/Share	NTD 0.50	NTD 0.64	NTD (0.14)	(21.88)

Budget Execution: The company did not publicly disclose an annual financial forecast for 2025; therefore this section is not applicable.
Comparison of financial position

Unit: NT$ thousands

Item	2025/12/31	2024/12/31
Total assets	2,229,440	2,136,452
Total liabilities	795,261	672,632
Shareholders' equity	1,434,179	1,463,820
Share capital	884,711	884,711
Additional paid-in capital	455,675	455,675
Retained earnings	115,643	116,178

Financial incomes, expenditures, and analysis of profitability:

Unit: NT$ thousands

Item	2025	2024
Net cash inflow from operating activities	129,041	231,286
Net cash outflow from investment activities	(173,812)	(189,186)
Net cash inflow (outflow) from financing activities	51,066	(17,243)
Return on investment (%)	2.35	2.96
Return on shareholders' equity (%)	3.06	3.95
Net income before tax to paid-up capital (%)	6.39	7.60
Net profit margin (%)	3.10	4.48
Basic earnings (net loss) per share after tax: NTD/Share	NTD 0.50	NTD 0.64

(III) Status of R&D

R&D status of Thick Film Business Department

1.1. The Copper Alloy-CA series chip resistors, in 1206/2512 sizes with resistance values from 0.01 to 0.05Ω, offer improved power handling and TCR performance, enhancing their competitiveness against metal foil resistors.

1.2. Expand the development of copper process Chip Resistors – CR..R series chip resistor products, with types 0805/1206//2512, increasing the resistance value to 10-50Ω to enhance cost advantages and improve product competitiveness.

1.3. High-stability AEC-Q200 and High Stability-QS series chip resistors, available in types 0402/0603/0805/1206, boast a high stability variation rate of ±1% and a resistance range of 1Ω to 10MΩ, meeting market demand for values below 10Ω and above 1MΩ that are difficult to achieve with thin film resistors.

1.4. Development of the CUH.R series 0402/0603/0805/1206/1210/2010/2512 high-current shunt products, guaranteeing a resistance value below 0.01Ω. The maximum operating current will be 3 to 8 times higher than that of existing thick film shunt products (5A to 16A), leveraging the cost benefits of copper manufacturing and its complete sulfurization resistance to enhance competitiveness.

1.5. Capitalizing on industry collaboration opportunities, the company invested in the development and production of 3216-size chip antennas, successfully entering the Bluetooth earphone and mobile device supply chain. Future plans include expanding into dual-band automotive navigation antennas to deepen diversified market presence.

1.6. Continue developing 4x power surge resistance and introduce the AEC-Q200 specification to serve the automotive market, addressing the growing need for higher power surge capability.

R&D status of Thin Film Sales Department

2.1. Thin-film and metal-film micro-resistors entered the R&D phase for TRL/TR 01005 small-form-factor products. The focus of metal film micro-resistance is around 1Ω, while the film offers applications ranging from 49.9Ω to 11.8KΩ in resistance value. Currently, 01005 has entered the pre-mass production stage and is being used for prototyping the next generation of mobile phones.

2.2. TQV high-voltage thin-film chip resistor development entered the mass production verification stage; TQV 1206/1210 resistance upper limit extended to 2MΩ. The voltage application range has been increased to 1000V, the maximum overload voltage to 2000V, and ESD tolerance to 4kV. Applied to BMS (battery management system), on-board chargers (OBC) and inverters for monitoring high-voltage battery pack voltage.

2.3. Thermal Jumper chip series TJ 0508/0603/0612/1206/1225/2512 entered mass production. Thermal jump wire chips are widely used in applications with limited space and high heat dissipation requirements. They rapidly dissipate heat from sources, enabling efficient cooling of circuit systems, improving computing performance, and extending the lifespan of circuit components – all of which is expected to support the rapid growth of AI applications.

2.4. TS high-stability automotive thin-film resistor series, compliant with AEC-Q200 test specifications, entered the mass production verification stage. The high-temperature storage temperature reaches $175^{\circ}\mathrm{C}$, with a maximum rated temperature of $85^{\circ}\mathrm{C}$, and exhibits a small reliability drift to achieve excellent high stability. Beyond its use in standard automotive electronics, it is well-suited for the high-temperature environments of AI servers and will be a key product in our future film resistor lineup.

2.5. AlN super high power thin film chip resistor THH 1206 $49.9\Omega \sim 1\mathrm{K}\Omega$ 2W, offering eight times the power of standard chip resistors. Aluminum nitride film resistors are used in high-precision, high-heat signal processing applications due to their extremely high thermal conductivity and low capacitance. The prototype has been completed, and full development is expected by 2026.

R&D status of Metal Plate Sales Department

3.1. Developed small-size, high-power resistor products; MAH2512-5W-0.5mΩ~20mΩ products successfully developed. At present, it has entered the volume testing phase. The 2512 component, at the same size, can handle up to 5W of power—an improvement over standard products. Currently used in LED car lighting, it is specifically designed for precise current driving of headlights, enabling high-power operation in a compact space.

3.2. MA2512-3W-0.3mΩ~0.5mΩ ultra-thin metal plate resistors completed relevant reliability testing and are currently being introduced into mass production. With its ultra-thin design, the product is only about 0.85mm thick, making it ideal for installation in space-constrained modules. The ultra-thin design facilitates dual-sided heat dissipation structures, significantly reducing the volume of power modules.

3.3. The alloy ultra-low resistance product MA0508-1W-0.5mΩ~2mΩ is currently in the mass production testing phase. Excellent stability and surge resistance, combined with the excellent heat dissipation efficiency of the wide-edge electrode, allows this component to achieve 1W of power in the small 0508 size – significantly higher than traditional 0805 resistors.

3.4. Small-size MAL 1206-1W-11 mΩ to 25 mΩ low-value metal plate resistors are now in mass production. The MAL1206 low-value metal plate resistor offers both space-saving and signal integrity benefits. Its low sensitivity characteristic minimizes signal distortion and is primarily used in circuits sensitive to high-frequency noise, wireless communication base stations, and GPS modules.

3.5. The four-terminal metal plate resistor MAF 0612, $1\mathrm{m}\Omega$ to $2\mathrm{m}\Omega$, has completed relevant reliability testing and entered mass production. The four-terminal metal plate resistor completely separates the current path from voltage measurement, allowing for more accurate current detection. The products are used in servers and data centers, in DC-DC converters and voltage regulation modules.

3.6. MU2512-3W-0.2mΩ ultra-low resistance products are currently in mass production. Produced through an extremely short manufacturing process, these products effectively reduce voltage drop and power loss under high current, capable of sensing charge/discharge currents exceeding 100A, for use in EV battery monitoring and BMS battery management systems in hybrid and pure electric vehicles.

3.7. Metal plate Shunt SRF1216-8W-0.2mR has completed prototype reliability testing and is currently in small-batch trial production. SRF1216-8W-0.2mR utilizes a four-terminal structure and is primarily used for high-precision current sensing, voltage distribution, high-current power modules, motor drives, industrial control, and battery management systems.

II.2026 Business Plans

Ever Ohms Technology 2026 Growth Drivers:

(1) Complete product portfolio

(I) Thick-film products:

Since 2018, the company has actively developed AEC-Q200-grade super high-voltage thick-film and ultra-high-power thick-film products. From Q1 2021, these were adopted by Taiwanese and Chinese automotive electronics designers and manufacturers in new model designs. Even during the relatively weak economic environment throughout 2025, automotive electrification demand — with its larger per-model consumption — continued to show significant order momentum, driving both sales volume and prices upward. Growth is expected to continue in 2026.
In 2023, the company developed small-size, ultra-high-power, surge-resistant SMD resistors, which were adopted by new energy vehicle designers the same year. Growth is expected to continue in 2026.
The company has secured production capacity for standard general-purpose series from the Nantong manufacturing base. In 2026, it will expand the promotion of general-purpose products to existing customers, increasing per-customer purchase amounts and volumes.
The specific functional thick film products continue to be selected in customer designs, and extend the business model of the previous years.

(II) Thin-film products:

Miniaturized 01005-size products began providing sampling to major smartphone manufacturers in Q4 2025. Orders are anticipated in 2026, targeting the high-end wearables market and high-end smartphones trending toward modular design.
The high-end series designed to endure harsh environments long-term achieved positive results through costing with major electronics industry players in 2025, secured orders, and is expected to be widely adopted in high-end downstream AI-related products in 2026.
Thermal Jumper chips are well-positioned for AI server market applications. As AI chip and server power consumption continues to rise, thermal jumpers can directly conduct heat to heatsinks or enclosures, effectively mitigating performance throttling caused by component overheating. Major suppliers have acknowledged and begun placing orders in 2025. The outlook for 2026 indicates a stable supply and substantial growth.

(III) Metal-plate products:

Miniaturized Wide-Electrode Products (MA0508 Series)

MA0508 Super low resistance series has been successfully adopted by a leading AI power module design and manufacturing company's supply chain. As multiple new customer models continue to adopt this specification, sales volume is expected to grow in line with AI market demand.

Highly Automated Process Products (MR and MU Series)

Following the certification of several major international manufacturers for the highly automated MR and MU series products in 2024, order intake remains strong for 2025, and capacity expansion was completed in Q4. 2026 will fully leverage the benefits of capacity expansion to meet growing order demand for the MU series in AI computing and inverter energy storage applications.

AI High-Performance Computing Layout (SRF1216 Series)

For the mainstream "low-voltage, high-current" power supply model for AI semiconductors, there is a clear market demand for four-terminal structures, high precision, and ultra-low resistance products. The SRF1216 (8W, 0.2mΩ/0.3mΩ) is actively being submitted for qualification, with the goal of obtaining certification for next-generation AI products (targeting mass production in 2027-2028) in 2026 to gain an early market position.

Standard-Size Ultra-Low Resistance Products (MU2512 Series)

The MU2512 product (0.2mΩ) received recognition by a well-known AI power supply designer in 2025. Between 2026 and 2027, a wave of broad sampling requests and qualification adoptions from AI-sector customers is anticipated, which will not only increase product penetration but also contribute significantly to revenue.

High-Power Resistor Products (MAH2512 Series)

MAH2512 (5W, 0.5mΩ-20mΩ) products have been actively promoted with significant resource investment over the past two years, and multiple customers have completed verification in 2025. In 2026, the company will intensify sales and marketing efforts targeting customers with urgent demand for high power density circuit designs, aiming to establish a leading position in this niche market.

(2) Marketing strategy and customer development

(I) Target markets and industries

Target high-growth industries such as electric vehicles (EV), new energy, industrial automation, and AI technology. Adopt a "one-stop shopping" approach to promote the Company's high value-added, high power density resistor products – developed over the years – to these target customers, addressing their design challenges.

(II) Expand the first-tier OEM factories and terminal brands

Deepen partnerships with EMS/OEM/ODM providers and pursue a "dual-track" strategy:

Brand-driven OEM: Continue direct engagement with leading end-brand customers. Once products are verified and adopted, these brands will specify our company as their electronic manufacturing partner, effectively streamlining the supplier evaluation process for OEM factories.
Reverse supply chain penetration: In 2026, we will further deepen our collaboration with electronic foundries, leveraging their existing supply chain networks to penetrate the market and secure more orders from international brands, thereby expanding our overall market share.

(3) 2026 Operational Objectives

The Company's 2026 operational objectives remain double-digit growth in annual revenue. This goal is based on the operational results of 2025 and will be achieved through continued expansion in high-growth markets, improved internal operational efficiency, and stronger customer relationships, driving comprehensive growth in the company's scale and profitability.

III. The future Company’s development strategies, and impacts from the external competition environment, regulatory environment, and macro operating environment:

(I) Deepen the technology moat and increase the value of the product portfolio.

Focus on AI and Automotive Key Technologies:
Fully develop thermal jumper chips for heat dissipation in AI servers, ultra-low resistance metal plate resistors, and — in response to the trend toward higher voltage supply for AI servers — move beyond general-purpose thick/thin-film products to place greater emphasis on surge-resistant thick-film and high-voltage thick/thin-film products.
In view of the trend towards ultra-small handheld devices, we will create technical barriers through miniaturization (such as the 01005 size) and high-power density technology.
Implement a "One-Stop-Shop" Strategy:
Integrate thick-film, thin-film, metal plate, and antenna product lines to provide customers with a complete resistor solution portfolio. Leverage a high-value product mix to defend against red-ocean price competition from commodity products.

(II) A dual-track market expansion strategy

Mutual Penetration of Brand and Contract Manufacturing:
Adopt a "dual-track business model" — on one hand, directly targeting end-brand manufacturers to achieve design-in certification, which then directs EMS contract manufacturers to procure accordingly; on the other hand, leveraging deep collaboration with tier-one EMS manufacturers to reverse-penetrate broader international brand supply chains, thereby expanding global market share.
Target High-Growth Application Segments:
Concentrate resources on markets with structural demand, including high-compute AI servers, electric vehicle (EV) battery management systems (BMS), inverters, and industrial automation, in order to reduce exposure to consumer electronics cyclical volatility.

(III) Optimization of the global supply chain and operational efficiency

Target High-Growth Application Segments:
Concentrate resources on markets with structural demand, including high-compute AI servers, electric vehicle (EV) battery management systems (BMS), inverters, and industrial automation, in order to reduce exposure to consumer electronics cyclical volatility.
Advance Organizational Specialization:
Continue to deepen functional specialization across R&D, manufacturing, quality assurance, and sales.
Through professional management, improve decision-making speed and production yield rates, building an agile organization with rapid-response capability.

(IV) Risk management and sustainable operations (ESG)

Geopolitical Risk and Supply Chain Resilience:
In the face of global geopolitical uncertainty, mitigate supply disruption risks through diversified supply chain deployment and dynamic inventory management, ensuring stable raw material supply.
Promote Green Manufacturing and Corporate Commitment:
Committed to compliance with international environmental regulations and customer ESG requirements — developing low-energy-consumption processes and eco-friendly materials, fulfilling corporate social responsibility, and ensuring the company remains competitive amid evolving regulatory environments.

In summary, facing a challenging yet promising business environment in 2026, the Company will adhere to its core values of “technological leadership, quality excellence, and customer focus” and steadily drive transformation and upgrading. We sincerely hope that all shareholders will continue to offer their support and guidance. Your trust is our greatest source of momentum. I would like to express my sincere gratitude to all customers, suppliers, shareholders, and colleagues.

We wish all the shareholders
Good health

Chairman: Liao Chen-Yi

Managerial Officer: Huang Hung-Chieh

Accounting Officer: Yang Shan-Yu

Two. Corporate Governance Report

I. Information on directors, general managers, deputy general managers, assistant general managers and heads of departments and branches

(I) Directors

Director Information As of March 28, 2026 | Unit: Shares; %

Job title	Nationality or place of registration	Name	Gender Age	Date of election	Term of office	Date of initial election	Holding shares at the time of election		Current shareholding		Shares currently held by spouse and minor children		Shares held through nominees		Principal work experience and academic qualifications	Positions held concurrently in the company and/or in any other company	Other officer(s), director(s), or supervisor(s) with which the person has a relationship of spouse or relative within the second degree
							No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio			Position	Name	Relationship
Chairman	Republic of China	Chi Wei Investment Co., Ltd.	-	2024.06.24	3 years	2021.07.02	1,880,000	2.12	1,880,000	2.12	-	-	-	-	-	-	-	-	-
	Republic of China	Representative Liao Chen-Yi	Male (61-70 years old)				-	-	2,630,000	2.97	1,350,000	1.53	11,501,000	13.00	Department of Electronic Engineering, Chiao-Tung University Vice President, Yageo Corporation Chairman, Ralee Electronic Corporation	CEO of the Company Director, Hong Yi Investment Co., Ltd. Director, Chi Wei Investment Co., Ltd. Director, Chi Long Investment Co., Ltd. Director, Bai-Chi Investment Co., Ltd. CEO, Liz Electronics (Nantong) Co., Ltd. Director, Shenzhen Ever Olms Electronic Co., Ltd. ABECO Electronic Co., Ltd. Representative of corporate director	-	-	-
Directors	Republic of China	Zuo-Kuan Investment Co., Ltd.	-	2024.06.24	3 years	2021.07.02	1,392,000	1.57	1,392,000	1.57	-	-	-	-	-	-	-	-	-
	Republic of China	Representative Chan Chin-Hui	Male (61-70 years old)				-	-	549,000	0.62	40,000	0.05	1,392,000	1.57	Master in Industrial Management, National Taipei University of Technology President, Giant Chip Technology Co., Ltd. President, Ralee Electronic Corporation	Vice Chairman and Deputy Chief Executive Officer of the Company Taiwan 3R Technology Co., Ltd. Supervisor Chairman, Zuo-Kuan Investment Co., Ltd.	-	-	-
Directors	Hong Kong	AKANE (H.K.) ELECTRONICS LIMITED	-	2024.06.24	3 years	2021.07.02	6,435,000	7.27	6,435,000	7.27	-	-	-	-	-	-	-	-	-
	Republic of China	Representative Kuo Shu-Chuan	Female (51-60 years old)				-	-	-	-	-	-	-	-	Bachelor, Department of International Business, National Taipei University of Business Vice President, Operation Department, Stackpole Electronics, Inc.	Vice President, Operation Department, Stackpole Electronics, Inc.	-	-	-
Directors	Republic of China	Jin Mao Investment Co., Ltd.	-	2024.06.24	3 years	2021.07.02	2,925,000	3.31	2,925,000	3.31	-	-	-	-	-	-	-	-	-
	Republic of China	Representative Fang Ming-Chung	Male (61-70 years old)				-	-	-	-	-	-	-	-	Department of Civil Engineering, Cheng Shiu Junior College of Engineering Chairman, Mildex Optical Inc.	Note 2	-	-	-

Job title	Nationality or place of registration	Name	Gender Age	Date of election	Term of office	Date of initial election	Holding shares at the time of election		Current shareholding		Shares currently held by spouse and minor children		Shares held through nominees		Principal work experience and academic qualifications	Positions held concurrently in the company and/or in any other company	Other officer(s), director(s), or supervisor(s) with which the person has a relationship of spouse or relative within the second degree
							No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio			Position	Name	Relationship
Directors	Republic of China	Wu Chih-Yuan	Male (61-70 years old)	2024.06.24	3 years	2021.07.02	2,000,000	2.26	2,000,000	2.26	840,000	0.95	-	-	Department of Mechanical Engineering, Nan Jeon University of Science and Technology Chairman, Kuo Hsing Electronic Co., Ltd.	Chairman, Kuo Hsing Investment Co., Ltd.	-	-	-
Directors	Republic of China	Yang Deng-Huei	Male (71-80 years old)	2024.06.24	3 years	2024.06.24	40,000	0.05	40,000	0.05	44,000	0.05	-	-	Department of Industrial Management, National Cheng Kung University Chairman, Takaotek (ZhongShan) Corporation CEO, DragonJet Corporation	Chairman, I-Sheng Electric Wire & Plastic (Kunshan) Co., Ltd. Vice Chairman, I-Sheng Electronics (Kunshan) Co., Ltd. Supervisor, DragonJet Corporation	-	-	-
Independent Director	Republic of China	Tsai Yang-Chung	Male (71-80 years old)	2024.06.24	3 years	2021.07.02	-	-	-	-	-	-	-	-	Ph.D, Department of Accounting, Maryland University, the U.S Professor Emeritus, Department and Institute of Accounting, National Taiwan University Representative of Corporate Supervisor, Taishin International Bank Co., Ltd.	Yang Zip Chemical Ind. Co., Ltd. Independent Director Shin Kong Commercial Bank Co., Ltd. Independent Director Apex International Co., Ltd. Independent Director	-	-	-
Independent Director	Republic of China	Chiu Tsung-Chih	Male (71-80 years old)	2024.06.24	3 years	2021.07.02	-	-	-	-	-	-	-	-	National Ph.D of Law, National Taiwan University Member of the 10th and 11th term of the Examination Yuan Chairman, Tait Marketing & Distribution Co., Ltd.	Sinew Pharma Inc. Independent Director AP Biosciences Inc. Independent Director	-	-	-
Independent Director	Republic of China	Hou Yu-Ming	Male (71-80 years old)	2024.06.24	3 years	2021.07.02	-	-	-	-	-	-	-	-	Bachelor, Department of Electronic Engineering, Tatung Institute of Technology President, Ralee Electronic Corporation HIM Technology Incorporate President Lite-On Semiconductor Corp. Vice President	None	-	-	-

Note 1: If the chairman of the board and the general manager or the equivalent position (top manager) of the company are the same person, spouse or relative of each other, the reasons, rationality, necessity and countermeasures shall be explained: None.
Note 2: Representative director of PANJIT International Inc.; Representative director of PYNMAX TECHNOLOGY CO., LTD; Chairman of PANJIT JAPAN Co., Ltd.; Director of PANJIT Electronics (Wuxi) Co., Ltd.; Director of PANJIT Electronics (Beijing) Co., Ltd.; Director of Suzhou Quaxin Electronics Co., Ltd.; Vice Chairman of Shenzhen Weiquan Electronics Co., Ltd.; Director of Shenzhen Guanshun Microelectronics Co., Ltd.; Chairman and General Manager of Aide Energy (Cayman) Holding Co., Ltd.; Partner of AIDE Energy Europe Coöperatie U.A.; Director of AIDE Energy Europe B.V.; Chairman of EC Solar C1 SRL; Director of PANJIT Semiconductor (Xuzhou) Co., Ltd.; Director of Wisdom Bright Inc.; Director of Wisdom Toprich Technology Limited; Director of Wisdom Mega Corp.; Director of MILDEX ASIA Co., Ltd.; Chairman and General Manager of Yingmao Technology (Wuxi) Co., Ltd.; Director of SINANO TECHNOLOGY CORP.; Chairman and General Manager of MILDEX OPTICAL INC.; Director of MILDEX TECHNOLOGY HOLDING (CAYMAN) CO., LTD.; Director of JUMPLUS CO., LTD.; Representative director of ALLTOP TECHNOLOGY CO., LTD.; Chairman of Jinmao Investment Co., Ltd.; Representative director of MetaWells Co., Ltd; Representative director and Chairman of PANJIT Investment Co., Ltd.; Representative director and Chairman of Champion Microelectronic Corp.; Representative director and Chairman of Golden Champion Digital Power Corporation; Chairman of PAN-JIT JAPAN INVESTMENT; Representative director and Chairman of MILDEX OPTICAL INC.

Major Shareholders of Corporate Shareholders:

March 28, 2026

Name of corporate shareholder	Major shareholders of the corporate shareholder	Shareholding percentage
Chi Wei Investment Co., Ltd.	Liao Chen-Yi	100.00%
Zuo-Kuan Investment Co., Ltd.	Chan Chin-Hui	75.00%
	Sheng Pei-Yi	25.00%
AKANE (H.K.)	Stackpole Holdings, Inc.	80.00%
ELECTRONICS LIMITED	A&S Holdings, Inc.	20.00%
Jin Mao Investment Co., Ltd.	Chen Chun-Ming	15.00%
	Fang Ming-Chin	15.00%
	Tsai Li-Hsiang	10.00%
	Fang Hung-Rong	10.00%
	Fang Ming-Chung	20.00%
	Chuang Kuo-Sheng	6%
	Siligold Technology Inc.	5%
	Fang Shu-Ya	5%
	Fang Shu-Ling	5%
	Fang Shu-Qi	5%

Major Shareholders of Corporate as a Shareholder of Corporate Shareholders

March 28, 2026

Name of corporate shareholder	Major shareholders of the corporate	Shareholding percentage
Stackpole Holdings, Inc.	Akabane Yasuhiro	50.00%
	Wu Chia-Yin	49.00%
	Chien Yi-Ching	1.00%
A & S Holdings, Inc.	Akabane Yasuhiro	100.00%
Siligold Technology Inc.	Tsai Ming-Huei	50.00%
	Chuang Kuo-Sheng	50.00%

Disclosure of Information Regarding the Professional Qualifications and Experience of Directors and the Independence of Independent Directors

| Qualification
Name | Professional qualifications and experience | Independence analysis | No. of other public companies at which the person concurrently serves as an independent director |
| --- | --- | --- | --- |
| Chi Wei Investment Co., Ltd.
Representative: Liao Chen-Yi | 1. For professional qualifications and experience of directors, please refer to the "Two, I, (I)Information on Directors" (pages 6-7) in this annual report.
2. None of the directors has any of the circumstances described in Article 30 of the Company Act (Note 1). | Not applicable | 0 |
| Zuo-Kuan Investment Co., Ltd.
Representative: Chan Chin-Hui | | | 0 |
| AKANE (H.K.) ELECTRONICS LIMITED
Representative: Kuo Shu-Chuan | | | 0 |
| Jin Mao Investment Co., Ltd.
Representative: Fang Ming-Chung | | | 0 |
| Wu Chih-Yuan | | | 0 |
| Yang Deng-Huei | | | 0 |
| Tsai Yang-Chung | 1. For professional qualifications and experience of directors, please refer to the "Two, I, (I)Information on Directors" (page 7) in this annual report.
2. None of the directors has any of the circumstances described in Article 30 of the Company Act (Note 1). | All independent directors meet the following conditions:
1. In accordance with the relevant provisions of Article 14-2 of the Securities Exchange Act issued by the Financial Regulatory Commission and "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" (Note 2).
2. No shares of the Company are held by myself (or in the name of others), my spouse and minor children.
3. No compensation received by providing commercial, legal, financial, accounting or related services to the company or any affiliate of the company for which the provider for the past 2 years. | 3 |
| Chiu Tsung-Chih | | | 2 |
| Hsu Yu-Ming | | | 0 |

Note 1: Any of the following circumstances shall not be appointed as a manager, and those who have been appointed shall be dismissed of course:
1. Has committed a crime under the Organized Crime Prevention Act and has been confirmed by a guilty verdict and has not yet been executed, has not yet been executed, or has been executed, suspended or pardoned for less than five years.
2. A person who has committed a crime of fraud, breach of trust or embezzlement has been sentenced to fixed-term imprisonment of more than one year, has not been executed, has not been executed, or has not been executed, has expired the probation or has been pardoned for more than two years.
3. A person who has committed an offence under the Anti-Corruption Act and has been convicted of a crime which has not yet been executed, has not yet been executed, or has not been executed, has expired his probation or has been pardoned for more than two years.
4. The person who has been declared bankrupt or has begun liquidation procedures by court decision and has not yet been reinstated.
5. The use of the bill has not expired after rejection.
6. Persons without or with limited capacity.
7. The auxiliary declaration has not been revoked.
Note 2: 1. It is not the government, legal person or their representative as stipulated in Article 27 of the Company Act.
2. No more than three independent directors of other publicly offering companies.
3. In the two years prior to his election and during his term of office, he has not had any of the following circumstances:
(1) Employees of the Company or its affiliated enterprises.
(2) Directors and supervisors of the company or its affiliated enterprises.
(3) I, my spouse, minor children, or natural shareholders who hold more than 1% of the total issued shares of the Company in the name of others or who are among the top ten holders of shares.
(4) The spouse, a relative within the second degree of consanguinity or a relative within the third degree of consanguinity of a manager listed in (1) or a person listed in (2) or (3).
(5) Directors, supervisors or employees who directly hold more than 5% of the total number of issued shares of the company, hold the top five shares, or appoint representatives to serve as directors of the company in accordance with Article 27 of the Company Act.
(6) A director, supervisor or employee of another company who is controlled by the same person as more than half of the directorships or voting shares of the company.
(7) A director (director), supervisor (supervisor) or employee of another company or institution who is the same person or spouse of the chairman, general manager or equivalent position of the company.
(8) Directors (directors), supervisors (supervisors), managers or shareholders holding more than 5% of shares of specific companies or institutions that have financial or business dealings with the company.
(9) Professionals, sole proprietors, partnerships, business owners, partners, directors, supervisors, managers and their spouses who provide audit services for companies or affiliated enterprises or have received accumulated remuneration of more than NT $500,000 in the recent two years. However, those who are members of the compensation committee of the company are not subject to this limitation. However, those who are members of the compensation committee of the company are not subject to this limitation.

5. Diversity and independence of the Board

(1) Board's diversity

The company has established a "Corporate Governance Best Practice Principles," which explicitly sets out a board diversity policy. The current composition of the Board of Directors consists of 8 male members and 1 female member, with ages ranging from 51 to 80 years. Among them, Independent Director Tsai Yang-Tsung formerly served as a professor at the National Taiwan University Graduate Institute of Accounting and is currently an Honorary Professor; Independent Director Chiu Tsung-Chih holds a national doctoral degree in law and previously served as a district court judge; Independent Director Hsu Yu-Ming previously served as General Manager of listed companies. Together they possess professional expertise in financial accounting, legal practice, industry knowledge, and operational judgment respectively. The remaining 6 directors also have corporate management and operational experience, fulfilling the company's concrete diversity management objectives.

At the shareholders' meeting on June 24, 2024, the election of directors was passed. Currently, male directors account for $89\%$ (8 members) and female directors account for $11\%$ (1 member). As the female director seats have not yet reached one-third, the company will endeavor in the next term to increase the number of female directors through broad nominations of management talent in order to achieve this goal.

Implementation of the diversity policy for the board members is as below

Position	Chairman	Directors	Directors	Directors	Directors	Directors	Independent Director	Independent Director	Independent Director
Name	Liao Chen-Yi	Chan Chin-Hui	Kuo Shu-Chuan	Yang Deng-Huei	Fang Ming-Chung	Wu Chih-Yuan	Tsai Yang-Chung	Chiu Tsung-Chih	Hsu Yu-Ming
Gender	Male	Male	Female	Male	Male	Male	Male	Male	Male
Nationality	Republic of China	Republic of China	Republic of China	Republic of China	Republic of China	Republic of China	Republic of China	Republic of China	Republic of China
Age	61-70	61-70	51-60	71-80	61-70	61-70	71-80	71-80	71-80
Concurrently serving as the Company's employee	V	V
Professional knowledge and expertise
Commerce	V	V	V	V	V	V	V	V	V
Industry	V	V	V	V	V	V	V	V	V
Technology	V	V	V	V	V	V	V	V	V
Finance/accounting							V
Law								V
Ability and experience
Ability to make operational judgments	V	V	V	V	V	V	V	V	V
Ability to conduct management administration	V	V	V	V	V	V	V	V	V
Ability to conduct crisis management	V	V	V	V	V	V	V	V	V
Knowledge of the industry	V	V	V	V	V	V	V	V	V
An international market perspective	V	V	V	V	V	V	V	V	V

(2) Board's independence

The company currently has 9 board members, including 6 directors and 3 independent directors, accounting for $33.33\%$ . All the 3 independent directors are in accordance with the standard of "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies", and there is no situation in Item 3 and Item 4 of Article 26 of the Securities and Exchange Act between each director and independent director. The Board of Directors of the Company is independent. Please refer to page 12 of this annual report for details of the professional qualifications, experience and independence of the directors.

(3) Board diversity policy and specific management goals, and their achievement status

Management Goals	Status of Achievement
The number of directors who also serve as the Company's managerial officers shall not exceed one-third of the total seats of directors	Achieved
The Board of Directors includes at least one female	Achieved
The term of office of an independent director shall not exceed three terms	Achieved
At least one-third of the independent directors have legal, accounting or technology expertise	Achieved

(II) Information on management team
March 28, 2026 | Unit: Shares; %

Job title	Nationality	Name	Gender	Date of appointment to position	Shareholding		Shares held by spouse and minor children		Shares held through nominees		Principal work experience and academic qualifications	Positions concurrently held in other companies at present	Other managerial officer(s) with which the person has a relationship of spouse or relative within the second degree
					No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio			Position	Name	Relationship
Chairman concurrently CEO	Republic of China	Liao Chen-Yi	Male	2018.07.01	2,630,000	2.97	1,350,000	1.53	11,501,000	13.00	Department of Electronic Engineering, Chiao-Tung University
Vice President, Yagoo Corporation
Chairman, Ralec Electronic Corporation	Director, Hong Yi Investment Co., Ltd.
Director, Chi Wei Investment Co., Ltd.
Director, Chi Long Investment Co., Ltd.
Director, Bai-Chi Investment Co., Ltd.
CEO, Liz Electronics (Nantong) Co., Ltd.
Director, Shenzhen Ever Ohms Electronic Co., Ltd.
Representative of corporate director, ABECO Electronic Co., Ltd.	-	-	-
Vice Chairman and Deputy Chief Executive Officer	Republic of China	Chan Chin-Hui (Note 1)	Male	2017.08.01	549,000	0.62	40,000	0.05	1,392,000	1.57	Master in Industrial Management, National Taipei University of Technology President, Giant Chip Technology Co., Ltd.
President, Ralec Electronic Corporation	Supervisor, Taiwan 3R Technology Co., Ltd.
Chairman, Zuo-Kuan Investment Co., Ltd.	-	-	-
President concurrently COO	Republic of China	Huang Hung-Chieh (Note 2)	Male	2019.01.01	239,000	0.27	5,000	0.01	701,000	0.79	Department of Accounting, Ming Chuan University
EMBA, National Sun Yat-sen University
Vice Manager, Deloitte Taiwan
Manager, Finance and Accounting Department, Ralec Electronic Corporation	Director concurrently President, Shenzhen Ever Ohms Electronic Co., Ltd.
Director, Li Jing Investment Co., Ltd.
Supervisor, Magic Tw International Co., Ltd.	-	-	-
Executive deputy general manager	Republic of China	Ou Chuan-Fu	Male	2021.03.02	50,000	0.06	-	-	-	-	Bachelor, Department of Industrial Engineering and Management, Kaohsiung Applied Science and Technology University
Associate Vice President, Department of Manufacturing, Ralec Electronic Corporation
Special Assistant to Chairman, Ralec Electronic Corporation	None	-	-	-
Deputy General Manager, Sales Department	Republic of China	Li Ssu-Chieh	Male	2023.03.01	20,000	0.02	-	-	-	-	M.S. in Technology Application Management, Department of Industrial Education, College of Technology and Engineering, National Taiwan Normal University
Manager, Sales Department, Ralec Electronic Corporation	Director, Shenzhen Ever Ohms Electronic Co., Ltd.	-	-	-
Deputy General Manager, Quality	Republic of China	Liu Yi-Cheng	Male	2024.09.02	-	-	-	-	-	-	Department of Mechanical Engineering, National Taiwan University of Science and Technology	None	-	-	-

Job title	Nationality	Name	Gender	Date of appointment to position	Shareholding		Shares held by spouse and minor children		Shares held through nominees		Principal work experience and academic qualifications	Other managerial officer(s) with which the person has a relationship of spouse or relative within the second degree
					No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio		Position	Name	Relationship
Assurance Department											Deputy General Manager, Ralec Electronic (Kunshan) Corporation
Deputy General Manager, Quality Assurance Department, Ralec Electronic Corporation
Deputy General Manager, Product Engineering Application Department	Republic of China	Kuo Shu-Wei	Male	2019.09.01	-	-	-	-	365,000	0.41	Department of Computer Science and Information Engineering, Taiwan University of Science and Technology
Manager, Sales Department, Ralec Electronic Corporation	Director, Chen Ji Ji Investment Co., Ltd.	-	-	-
R&D Associate Vice President of thick film products	Republic of China	Tseng Chin-Yuan	Male	2019.09.01	165,000	0.19	-	-	-	-	Master, Master Program of Electronics Engineering, National Chengkung University
Chief of R&D Department, Yageo Corporation
Manager, Thin-Film R&D Department, Ralec Electronic Corporation	None	-	-	-
R&D Associate Vice President of metal plate products	Republic of China	Tsai Cheng-Lin	Male	2021.04.07	60,000	0.07	-	-	-	-	Bachelor, Department of Information Technology, Kao Yuan University
Section Leader, Department of Manufacturing, Ralec Electronic Corporation
Manager, R&D Department, Ralec Electronic Corporation	None	-	-	-
Associate Vice President, Sales Department	Republic of China	Chung Yu Fang	Female	2023.08.01	-	-	-	-	-	-	Department of Business Administration, Tamsui Institute of Business Administration
Manager, Sales Department, Ralec Electronic Corporation	None	-	-	-
Chief Accounting Officer and Corporate Governance Officer	Republic of China	Yang Shan-Yu	Female	2025.05.27	10,000	0.01	-	-	-	-	Department of Accounting and Information Technology, National Chung Cheng University
Deputy Finance Manager, Vishay General Semiconductor Taiwan Ltd.	Supervisor, Shenzhen Ever Ohms Electronic Co., Ltd.	-	-	-

Note: If the chairman of the board of directors and the general manager or the person in the same position (top manager) are the same person, each other's spouse or a close relative, the reason, rationality, necessity and countermeasures shall be explained: None.
Note 1: General Manager Chan Ching-Hui was promoted to Vice Chairman and Deputy Chief Executive Officer on May 27, 2025.
Note 2: Deputy General Manager of Administration and CFO Huang Hung-Chieh was promoted to General Manager and Chief Operating Officer on May 27, 2025.

II. Remunerations paid to directors, general managers, deputy general managers, assistant general managers in the most recent years

(I) Remuneration Paid to Directors for the Most Recent Fiscal Year (2025):

Unit: NT$ thousands

Position	Name	Remuneration of Directors							Sum of A+B+C+D and ratio to net income	Remuneration received by directors for concurrent service as an employee								Sum of A+B+C+D+E+F+G and ratio to net income	Remuneration received from investee enterprises other than subsidiaries or from the parent company
		Base compensation (A)		Retirement pay and pension (B)		Director profit-sharing compensation (C)		Expenses and perquisites (D)			Salary, rewards, and special disbursements (E)		Retirement pay and pension (F)		Employee profit-sharing compensation (G)
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
Chairman	Chi Wei Investment Co., Ltd. Representative: Liao Chen-Yi	-	-	-	-	100	100	-	-	100 0.23%	100 0.23%	3,308	3,308	-	-	-	-	-	-	3,408 7.68%	3,408 7.68%
Directors	Zuo-Kuan Investment Co., Ltd. Representative: Chan Chia-Hai	-	-	-	-	200	200	-	-	200 0.45%	200 0.45%	5,000	5,000	108	108	-	-	-	-	5,308 11.96%	5,308 11.96%
Directors	AKANE (H.K.) ELECTRONICS LIMITED Representative: Kuo Shu-Chuan	-	-	-	-	200	200	18	18	218 0.49%	218 0.49%	-	-	-	-	-	-	-	-	218 0.49%	218 0.49%
Directors	Jin Mao Investment Co., Ltd. Representative: Fang Ming-Chung	-	-	-	-	200	200	15	15	215 0.48%	215 0.48%	-	-	-	-	-	-	-	-	215 0.48%	215 0.48%
Directors	Wu Chih-Yuan	-	-	-	-	200	200	18	18	218 0.49%	218 0.49%	-	-	-	-	-	-	-	-	218 0.49%	218 0.49%
Directors	Yang Deng-Huei	-	-	-	-	200	200	18	18	218 0.49%	218 0.49%	-	-	-	-	-	-	-	-	218 0.49%	218 0.49%
Independent Director	Tsai Yang-Chung	360	360	-	-	300	300	18	18	678 1.53%	678 1.53%	-	-	-	-	-	-	-	-	678 1.53%	678 1.53%
Independent Director	Chiu Tsung-Chih	360	360	-	-	300	300	18	18	678 1.53%	678 1.53%	-	-	-	-	-	-	-	-	678 1.53%	678 1.53%
Independent Director	Hsu Yu-Ming	360	360	-	-	300	300	18	18	678 1.53%	678 1.53%	-	-	-	-	-	-	-	-	678 1.53%	678 1.53%

The policy, system, standards and structure in place for paying remuneration to independent directors and describe the relationship of factors such as the duties and risks undertaken and time invested by the directors to the amount of remuneration paid.
(1) Directors' remuneration: the independent directors of the Company also serve as the functions of the Audit and Remuneration committees, and the directors' remuneration is distributed based on the current year's profit and depending on the time invested and the risks assumed.
(2) Business executions expenses: which are mainly transportation subsidies, setting by referencing to the standards of peers.
In addition to what is disclosed in the above table, please specify the amount of remuneration received by directors in the most recent fiscal year for providing services (e.g., for serving as a non-employee consultant to the parent company /any consolidated entities / invested enterprises): none.

Remuneration Range Table of Directors:

Ranges of remuneration paid to each of the Company's directors	Directors' Names
	Sum of A+B+C+D		Sum of A+B+C+D+E+F+G
	The Company	All consolidated entities	The Company	All consolidated entities
Less than NT$1,000,000	General Directors:
Liao Chen-Yi, Chan Ching-Hui, Kuo Shu-Chuan, Fang Ming-Chung, Wu Chih-Yuan, Yang Teng-Hui
Independent Directors:
Tsai Yang-Tsung; Chiu Tsung-Chih; Hsu Yu-Ming	General Directors:
Liao Chen-Yi, Chan Ching-Hui, Kuo Shu-Chuan, Fang Ming-Chung, Wu Chih-Yuan, Yang Teng-Hui
Independent Directors:
Tsai Yang-Tsung; Chiu Tsung-Chih; Hsu Yu-Ming	General Directors:
Kuo Shu-Chuan, Fang Ming-Chung, Wu Chih-Yuan, Yang Teng-Hui
Independent Directors:
Tsai Yang-Tsung; Chiu Tsung-Chih; Hsu Yu-Ming	General Directors:
Kuo Shu-Chuan, Fang Ming-Chung, Wu Chih-Yuan, Yang Teng-Hui
Independent Directors:
Tsai Yang-Tsung; Chiu Tsung-Chih; Hsu Yu-Ming
NT$1,000,000 (incl.)–NT$2,000,000 (excl.)
NT$2,000,000 (incl.)–NT$3,500,000 (excl.)			General Director: Liao Chen-Yi	General Director: Liao Chen-Yi
NT$3,500,000 (incl.)–NT$5,000,000 (excl.)
NT$5,000,000 (incl.)–NT$10,000,000 (excl.)			General Director: Chan Chin-Hui	General Director: Chan Chin-Hui
NT$10,000,000 (incl.)–NT$15,000,000 (excl.)
NT$15,000,000 (incl.)–NT$30,000,000 (excl.)
NT$30,000,000 (incl.)–NT$50,000,000 (excl.)
NT$50,000,000 (incl.)–NT$100,000,000 (excl.)
NT$100,000,000 and more
Total	9	9	9	9

(II) Remuneration Paid to the CEO, General Manager, Deputy CEO, and Deputy General Managers for the Most Recent Fiscal Year (2025):
Unit: NT$ thousands

Position	Name	Salary (A)		Retirement pay and pension (B)		Rewards and special disbursements (C)		Employee profit-sharing compensation (D)				Sum of A+B+C+D and ratio to net income (%)
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
								Amount in cash	Amount in stock	Amount in cash	Amount in stock
Chief executive officer	Liao Chen-Yi	3,008	3,008	-	-	300	300	-	-	-	-	3,308
7.45%	3,308
7.45%	-
Vice CEO	Chan Chin-Hui	3,600	3,600	108	108	1,400	1,400	-	-	-	-	5,108
11.51%	5,108
11.51%	-
President	Huang Hung-Chieh	2,066	2,066	102	102	1,300	1,300	500	-	500	-	3,968
8.94%	3,968
8.94%	-
Executive deputy general manager	Ou Chuan-Fu	1,656	1,656	102	102	357	357	250	-	250	-	2,365
5.33%	2,365
5.33%	-
Vice President	Kuo Shu-Wei	1,656	1,656	98	98	348	348	250	-	250	-	2,352
5.30%	2,352
5.30%	-
Vice President	Li, Ssu-Chieh	1,224	1,224	81	81	339	339	250	-	250	-	1,894
4.27%	1,894
4.27%	-
Vice President	Liu Yi-Cheng	1,518	1,518	92	92	339	339	250	-	250	-	2,199
4.95%	2,199
4.95%	-

Remuneration Range Table

Remuneration Range Table of Presidents and Vice Presidents	Names of Presidents and Vice Presidents
	The Company	All consolidated entities
Less than NT$1,000,000
NT$1,000,000 (incl.)-NT$2,000,000 (excl.)	Li Ssu-Chieh	Li Ssu-Chieh
NT$2,000,000 (incl.)-NT$3,500,000 (excl.)	Liao Chen-Yi, Ou Chun-Fu, Kuo Shu-Wei, Liu Yi-Cheng	Liao Chen-Yi, Ou Chun-Fu, Kuo Shu-Wei, Liu Yi-Cheng
NT$3,500,000 (incl.)-NT$5,000,000 (excl.)	Huang Hung-Chieh	Huang Hung-Chieh
NT$5,000,000 (incl.)-NT$10,000,000 (excl.)	Chan Chin-Hui	Chan Chin-Hui
NT$10,000,000 (incl.)-NT$15,000,000 (excl.)
NT$15,000,000 (incl.)-NT$30,000,000 (excl.)
NT$30,000,000 (incl.)-NT$50,000,000 (excl.)
NT$50,000,000 (incl.)-NT$100,000,000 (excl.)
NT$100,000,000 and more
Total	7	7

(III) Top Five Highest-Compensated Executives of Listed/OTC Companies for 2025:
Unit: NT$ thousands

Position	Name	Salary (A)		Retirement pay and pension (B)		Rewards and special disbursements (C)		Employee profit-sharing compensation (D)				Sum of A+B+C+D and ratio to net income (%)		Remuneration received from investee enterprises other than subsidiaries or from the parent company
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
								Amount in cash	Amount in stock	Amount in cash	Amount in stock
Vice Chairman	Chan Chin-Hui	3,600	3,600	108	108	1,400	1,400	-	-	-	-	5,108	5,108	-
President	Huang Hung-Chieh	2,066	2,066	102	102	1,300	1,300	500	-	500	-	3,968	3,968	-
Chief executive officer	Liao Chen-Yi	3,008	3,008	-	-	300	300	-	-	-	-	3,308	3,308	-
Executive deputy general manager	Ou Chuan-Fu	1,656	1,656	102	102	357	357	250	-	250	-	2,365	2,365	-
Vice President	Kuo Shu-Wei	1,656	1,656	98	98	348	348	250	-	250	-	2,352	2,352	-

*The concept of remuneration disclosed in this table is different from that of Income Tax Act. Therefore, this table is for information disclosure and not for tax purpose.

(IV)Names of Managers Receiving Employee Profit Sharing Distributions and Distribution Details:

As of December 31, 2025 | Unit: NT$ thousands

Position	Name	Amount in stock	Amount in cash	Total	Total to net income (%)
Chief executive officer	Liao Chen-Yi	-	1,880	1,880	4.23
Vice CEO	Chan Chin-Hui
President	Huang Hung-Chieh
Executive deputy general manager	Ou Chuan-Fu
Deputy General Manager, Sales Department	Li Ssu-Chieh
Deputy General Manager, Product Engineering Application Department	Kuo Shu-Wei
Deputy General Manager, Quality Assurance Department	Liu Yi-Cheng
Associate Vice President, Thin Film Business Department:	Tseng Chin-Yuan
Associate Vice President, Metal Plate R&D Department:	Tsai Cheng-Lin
Associate Vice President, Sales Department	Chung Yu Fang
Finance and Accounting Department Manager	Yang Shan-Yu

(V) Comparative Analysis of Total Remuneration Paid to the Company's Directors, General Manager, and Deputy General Managers Over the Most Recent Two Fiscal Years as a Percentage of Net Income After Tax in the Individual and Consolidated Financial Statements, with Explanation of Remuneration Policy, Standards and Components, Procedures for Determining Remuneration, and Its Relationship to Operating Performance and Future Risk:

Analysis of Total Remuneration Paid to Directors, General Manager, and Deputy General Managers as a Percentage of Net Income After Tax for the Most Recent Two Fiscal Years

Unit: NT$ thousands

Analysis item	2024		2025
	The Company	All consolidated entities	The Company	All consolidated entities
Total remuneration of directors	12,409	12,409	11,619	11,619
Total remuneration of directors to net income after tax (%)	21.86	21.86	26.17	26.17
Total remuneration of presidents and vice presidents	22,527	22,527	21,194	21,194
Total remuneration of presidents and vice presidents to net income after tax (%)	39.68	39.68	47.74	47.74
Note: The company established an Audit Committee on July 2, 2021, replacing the functions of the Supervisory Board.

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

The remuneration for the company's directors and supervisors has been explicitly stipulated in the company's Articles of Incorporation. The remuneration for the General Manager and Deputy General Managers is determined by reference to their respective positions, responsibilities, contributions to the company, and industry benchmarks. The procedure for setting remuneration is established in accordance with the Articles of Incorporation and the authority approval matrix. In determining remuneration for directors, the General Manager, and Deputy General Managers, the company has also taken into account the future operational risks faced by the company and their positive correlation with business performance, in order to strike a balance between sustainable operations and risk management.

III. State of the company's implementation of corporate governance

(I) Information on operation of Board of Directors

During the most recent fiscal year (2025), the Board of Directors held 6 meetings in total (A). Director attendance is as follows:

Position	Name	No. of meetings attended in person (B)	No. of meetings attended by proxy	In-person attendance rate (%) [B/A]	Remarks
Chairman	Chi Wei Investment Co., Ltd. Representative: Liao Chen-Yi	6	0	100	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings
Directors	Zuo-Kuan Investment Co., Ltd. Representative: Chan Chin-Hui	6	0	100	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings
Directors	AKANE (H.K.) ELECTRONICS LIMITED Representative: Kuo Shu-Chuan	6	0	100	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings
Directors	Yang Deng-Huei	6	0	100	Newly appointed after the June 24, 2024 re-election; required to attend 6 meetings
Directors	Jin Mao Investment Co., Ltd. Representative: Fang Ming-Chung	5	1	83	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings
Directors	Wu Chih-Yuan	6	0	100	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings
Independent Director	Tsai Yang-Chung	6	0	100	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings
Independent Director	Chiu Tsung-Chih	6	0	100	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings
Independent Director	Hua Yu-Ming	6	0	100	Re-elected after the June 24, 2024 re-election; required to attend 6 meetings

Other information required to be disclosed:
I. If any of the following circumstances exists, specify the board meeting date, meeting session number, content of the motion(s), the opinions of all the independent directors, and the measures taken by the Company based on the opinions of the independent directors: (I) Matters listed in Article 14-3 of the Securities Exchange Act: The Company has set up an audit committee, which does not apply to Article 14-3 of the Securities Exchange Act. For a description of the matters set out in Article 14 to 5 of the Securities and Exchange Act, please refer to this annual report "Information on the Operation of the Audit Committee". (II) In addition to the matters referred to above, any dissenting or qualified opinion of an independent directory that is on record or stated in writing with respect to any board resolution: none.
II. The status of implementation of recusals of directors with respect to any motions with which they may have a conflict of interest: specify the director's name, the content of the motion, the cause for recusal, and whether and how the director voted:

Meeting session number	Date	Content of the motion(s)	Resolution result	Directors' Names	Reason of recusal
2nd Term, 2025 1st Meeting	2025.01.16	Agenda: Disbursement of year-end bonuses for managers for 2024	After the chair consulted all the directors present, no objection was voiced. Approved as proposed	Liao Chen-Yi; Chan Chin-Hui	Recused from discussion and voting due of conflict of interests
2nd Term, 2025 2nd Meeting	2025.03.06	Agenda: Distribution of employee profit sharing and director remuneration for 2024	After the chair consulted all the directors present, no objection was voiced. Approved as proposed	Liao Chen-Yi; Chan Chin-Hui	Recused from discussion and voting due of conflict of interests
		Agenda: Distribution of employee profit sharing for managers for 2024	After the chair consulted all the directors present, no objection was voiced. Approved as proposed	Liao Chen-Yi; Chan Chin-Hui	Director Liao Chen-Yi, who concurrently holds employee status, would ordinarily be required to recuse himself; however, as no employee profit sharing was distributed, recusal was not required. Director Chan Ching-Hui recused himself due to a conflict of interest and did not participate in discussion or voting.
2nd Term, 2025 5st Meeting	2025.07.31	Organizational restructuring in response to business development, including salary details for relevant managers	After the chair consulted all the directors present, no objection was voiced. Approved as proposed	Chan Chin-Hui	Recused from discussion and voting due of conflict of interests

III. For a TWSE or TPEs listed company, disclose information including the evaluation cycle and period(s) of the board of directors' self-evaluations (or peer evaluations) and the evaluation method and content. Additionally, complete Table 2(2) Implementation of Evaluations of the Board of Directors.

Evaluation cycle	Evaluation period	Scope of evaluation
Once a year	January 1 to December 31, 2025	1. Overall board of directors
2. Individual board members
3. Functional committees	1. Self-assessments within the Board
2. Self-assessments and peer-to-peer assessments among board members
3. Self-assessments of functional committee members	1. Performance evaluation of the Board
(1) Participation in the operation of the company;
(2) Improvement of the quality of the board of directors' decision making;
(3) Composition and structure of the board of directors;
(4) Election and continuing education of the directors; and
(5) Internal control.
2. Performance evaluation of individual board members
(1) Alignment of the goals and mission of the company;
(2) Awareness of the duties of a director;
(3) Participation in the operation of the company;
(4) Management of internal relationship and communication;
(5) The director's professionalism and continuing education; and
(6) Internal control.
3. Performance evaluation of functional committees
(1) Participation in the operation of the company;
(2) Recognition of the duties of the functional committee.
(3) Improvement in the quality of decision making by the functional committee.
(4) The composition of the functional committee, and election and appointment of committee members.
(5) Internal control.

The company first established the "Board Performance Evaluation Procedures" on May 26, 2021. The board performance evaluation for the first quarter of 2026 has been completed, and the results were satisfactory.

IV. Give an evaluation of the targets that were adopted for strengthening of the functions of the board during the current and immediately preceding fiscal years (e.g., establishing an audit committee, increasing information transparency, etc.) and the measures taken toward achievement thereof.

(I) The Company has established the "Rules of Procedure for Board of Directors Meetings" pursuant to the "Regulations Governing Procedure for Board of Directors Meetings of Public Companies" for compliance.

(II) To improve the supervisory responsibility of the Board and strengthen the management mechanism of the Board, the Company has established the Audit Committee. The Audit Committee consists of all independent directors. To perform its duties, the Audit Committee has the power to conduct any appropriate audit and investigation, with channels for directly contacting the Company's auditors and management.

(III) The Company has established the Remuneration Committee, responsible for performing regular assessments and formulating the Company's overall remuneration policy, formulating and regularly reviewing directors and managerial officers' performance evaluation, remuneration policies, systems, standards, and structures, regularly evaluating and formulating the Board and managerial officers, the employees' warrants or other incentive plans for employees.

(IV) We are committed to implementing sustainable development goals such as environmental protection, social responsibility and corporate governance. On November 7, 2024, the Board of Directors approved the establishment of the "Sustainable Development Committee", which is responsible for establishing sustainability related procedures, formulating corporate sustainable development policies, systems or relevant management guidelines, etc.

(V) The company has, upon approval by the Board of Directors, established "Board Performance Evaluation Procedures" and conducts annual board performance evaluations. The evaluation results for 2025 were submitted and reported to the Board of Directors on February 26, 2026.

(VI) To strengthen the risk management and indirectly protect shareholders' rights and interests, the Company purchases liability insurance for directors pursuant to the Articles of Incorporation.

(II). Information on the operation of the Audit Committee

The Company established the Audit Committee on July 2, 2021 up on the approval of the shareholders' meeting to replace the system of supervisor.
Operation of Audit Committee

During the most recent fiscal year (2025), the Audit Committee held 6 meetings in total (A). Audit Committee member attendance is as follows:

Position	Name	No. of meetings attended in person (B)	In-person attendance rate (%) (B/A)	Remarks
Independent Director	Tsai Yang-Chung	6	100	Convener
Independent Director	Chiu Tsung-Chih	6	100	-
Independent Director	Hsu Yu-Ming	6	100	-

Other information required to be disclosed:

I. In the event that the operation of the Audit Committee is under any of the following circumstances, the meeting date of the Audit Committee meeting, the term of the meeting, the contents of the motions, the independent directors' dissenting opinions, qualified opinions, or major recommendations, the Audit Committee's resolutions, and the Company's Handling of opinions should be stated.

(I) Any matter under Article 14-5 of the Securities and Exchange Act.

Meeting date of the Audit Committee	Meeting session number	Content of the motion(s)	Resolution adopted by the Audit Committee	The Company's handling of the resolutions of the Audit Committee
2025.03.06	2nd Term, 2025 2nd Meeting	Assessment of the independence and competency of the company's 2025 signing certified public accountants	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
		2024 Business Report, individual and consolidated financial statements	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
		2024 earnings distribution proposal	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
		2024 Internal Control System Statement	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
		Amendment to the "Payroll Cycle" section of the Internal Control System	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
		The company's proposal not to proceed with the private placement of common shares approved at the 2024 Annual General Shareholders' Meeting	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
2025.05.27	2nd Term, 2025 4th Meeting	Personnel change matters regarding the CFO, Finance Officer, Chief Accounting Officer, and Corporate Governance Officer	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
2025.11.04	2nd Term, 2025 6th Meeting	Formulation of the 2026 audit plan	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.

(II) In addition to the matters referred to above, any matter that was not approved by the audit committee but was approved by a two-thirds or greater majority resolution of the board of directors: none.

II. Implementation of recusals of independent directors with respect to any motions with which they may have a conflict of interest: specify the independent director's name, the content of the motion, the cause for recusal, and whether and how the independent director voted: none.

III. Communication between the independent directors and the chief internal audit officer and the CPAs that serve as external auditor (including any significant matters communicated about with respect to the state of the company's finances and business and the method(s) and outcomes of the communication.)

(1) Communication between independent directors and CPAs:

Date	Matters communicated	Communication result
2025.03.06	The CPAs communicated with the corporate governance unit on the key audit matters of the 2024 financial statements	Good

(2) Communication between independent directors and internal auditors:

Date	Matters communicated	Communication result
2025.01.16	Summary report on execution of the audit plan for October to December 2024	No dissent and approved as proposed
2025.03.06	Summary report on execution of the audit plan for January 2025	No dissent and approved as proposed
2025.05.08	Summary report on execution of the audit plan for February to March 2025	No dissent and approved as proposed
2025.07.31	Summary report on execution of the audit plan for April to June 2025	No dissent and approved as proposed
2025.11.04	Summary report on execution of the audit plan for July to September 2025	No dissent and approved as proposed

IV.Key Work Focus of the Audit Committee for 2025:

(1) Review of financial statements

The Board of Directors prepared the company's 2024 Business Report, financial statements, and earnings distribution proposal. The financial statements were audited by Deloitte & Touche, which issued an audit report. Upon review by the Audit Committee, no irregularities were found.

(2) Assessing the effectiveness of the internal control system
(3) Establishment of annual audit plan
(4) Communicate regularly with the Company's CPAs regarding the audit of the current year or the audit results
(5) Review of business report and distribution of earnings
(6) Evaluation of the independence of the attesting CPA

(III) Corporate Governance – Implementation Status and Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the Reasons

Evaluation item	Status of operation			Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary
I. Has the Company established and disclosed its Corporate Governance Best-Practice Principles based on the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies?	☑		The Company has formulated its "Code of Corporate Governance Practices" on April 7, 2022 with reference to the "Code of Corporate Governance Practices for Listed Companies" and has been approved by the Board of Directors for compliance. This Code has been uploaded to the Market Observation Post System and the Company’s website.	No significant deviance
II. Shareholding Structure and Shareholders’ Rights
(I) Does the Company have Internal Operation Procedures for handling shareholders’ suggestions, concerns, disputes and litigation matters. If yes, have these procedures been implemented accordingly?	☑		(I) The Company has appointed the spokesperson and deputy spokesperson system, to hand shareholders’ suggestions or disputes, and other related issues, to ensure the rights and interests of shareholders.	No significant deviance
(II) Does the Company know the identity of its major shareholders and the parties with ultimate control of the major shareholders?	☑		(II) The Company engages a professional stock affairs agency, and has the stock affairs clerk in place, to take charge of handling the stock affairs of directors, managerial officers, and major shareholders holding 10% or more of the stake, whiling declaring such monthly to the website of MOPS designated by the Securities and Futures Bureau; the Company is able grasp the major shareholders and their changes.
(III)Has the Company built and implemented a risk management system and a firewall between the Company and its affiliates?	☑		(III)Pursuant to relevant laws and regulations, the Company has formulated the "Regulations for the Supervision and Management of Subsidiaries" and the "Operational Procedures for the Managing the Transactions with Group’s Enterprises, Specific Companies and Related Parties," to properly control the risks between the Company and affiliates, and establish appropriate firewalls.
(IV)Has the Company established internal rules prohibiting insider trading of securities based on undisclosed information?	☑		(IV)The Company has formulated the "Managerial Procedures for Preventing Insider Trading," and relevant personnel implement accordingly, to avoid improper leakage of information, prevent the occurrence of insider trading, protecting investors, and safeguarding the rights and interests of the Company.
Implementation status
(1) When a director takes office, he/she will be provided with a manual on the laws and regulations, and the regulatory information will be sent to the director from time to time.
(2) The Company also sends regulatory information to managers from time to time for their reference.
(3) The notice of reminder is given to the directors and the managers not to trade the Company’s shares in the public market during the closed period of 30 days prior to the publication of the annual financial reports and 15 days prior to the publication of the quarterly financial reports.
III. Composition and responsibilities of the board of directors
(I) Have a diversity policy and specific management objectives been adopted for the board and have they been fully implemented?	☑		(I) The Company specifies the diversity of the Board in the “Corporate Governance Best-Practice Principles;” the board members have different professional backgrounds in the fields and operation and management practices, to complement the structure of the Company’s Board. The Company’s board of directors has a total of nine directors (including three independent directors). The professional knowledge and skill backgrounds of the directors cover industry, accounting and finance, and law, with the	No significant deviance

Evaluation item	Status of operation	Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
Yes	No	Summary

(II) Has the Company voluntarily established other functional committees in addition to the remuneration committee and the audit committee?	✓
(III)Has the Company established rules and methodology for evaluating the performance of its Board of Directors, implemented the performance evaluations on an annual basis, and submitted the results of performance evaluations to the board of directors and used them as reference in determining salary/compensation for individual directors and their nomination and additional office terms?	✓
Item	Score	Result
Overall Board of Directors	92	Excellent
Individual Board Members	96.04	Excellent
Audit Committee	96.33	Excellent

Evaluation item	Status of operation					Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary
			Remuneration Committee	99.33	Excellent
			Sustainability Development Committee	94.17	Excellent
			The performance evaluation results for the company's board members, Board of Directors, and functional committees for 2025 were reported to the Board of Directors on February 26, 2026.
(IV)Does the Company regularly evaluate its external auditors' independence?	✓		(I) The audit committee of the company shall regularly evaluate the independence of the certified public accountants every year and report the evaluation results to the board of Directors. The accounting firm and visa accountant selected by the company have no interest and strictly abide by their independence. In the first quarter of each year, the audit committee shall discuss the appointment of the annual audit and the independence and suitability assessment of the visa accountant, and submit the evaluation and appointment results to the board of directors for discussion and resolution. The evaluation results for the most recent fiscal year were discussed and approved by the Audit Committee on February 26, 2026, and subsequently submitted to the Board of Directors meeting on February 26, 2026, which resolved that the signing certified public accountants meet the independence standards and are qualified to serve as the company's signing auditors. (II) Please refer to page 27 (Note 1) for the evaluation table of CPAs' independence and suitability. (III) The rotation of the Company's certified public accountants is also handled in compliance with relevant regulations, and the 13 audit quality indicators will be regularly referred to every year (Note 2).			No significant deviance
IV. Does the TWSE/TPEx listed company have in place an adequate number of qualified corporate governance officers and has it appointed a chief corporate governance officer with responsibility corporate governance practices (including but not limited to providing information necessary for directors and supervisors to perform their duties, aiding directors and supervisors in complying with laws and regulations, organizing board meetings and annual general meetings of shareholders as required by law, and compiling minutes of board meetings and annual general meetings)?	✓		(I) On December 22, 2022, the Company set up the position of a corporate governance officer responsible for matters related to corporate governance, including providing materials related to board meetings, handling courses related to directors' legal compliance, minutes of shareholders' meetings, and handling company registration and changes. (II) For details on the continuing education of the Corporate Governance Officer in 2025, please refer to page 27 of this annual report (Note 3).			No significant deviance
V. Has the Company established channels for communicating with its stakeholders (including but not limited to shareholders, employees, customers, suppliers, etc.) and created a stakeholders section on its company website? Does the Company appropriately respond to stakeholders' questions and concerns on important corporate social responsibility issues?	✓		The company has a spokesperson, agent spokesperson, stakeholder special personnel, to establish a sound communication channel, relevant contact information is announced in the public information observatory in accordance with regulations, and financial and stock related information is announced, and set up a special area for investors and corporate governance on the company website, according to the different nature of stakeholders set up exclusive stakeholder contact window. A special person is responsible for replying to relevant issues.			No significant deviance
VI. Has the Company appointed a professional shareholder services agent to handle matters related to its shareholder meetings?	✓		The Company has commissioned the professional agency, Department of Stock Affair Agency, Taishin Securities Co., Ltd. to handle all stock affairs related matters.			No significant deviance

Evaluation item	Status of operation			Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary
VII. Information Disclosure(I) Has the Company established a corporate website to disclose information regarding its financials, business, and corporate governance status?	✓		(I) The company adopts a transparency approach for all corporate information, which is accessible through the Market Observation Post System (MOPS). The company's website also features an "Investor Relations" section disclosing financial and business information, corporate governance matters, and other material information.	No significant deviance
(II) Does the Company use other information disclosure channels (e.g., maintaining an English-language website, designating staff to handle information collection and disclosure, appointing spokespersons, webcasting investors conference etc.)?	✓		(II) The company has designated responsible personnel for the collection and disclosure of corporate information, and has appointed a spokesperson and deputy spokesperson as required by regulations, to ensure that information that may affect the decisions of shareholders and stakeholders is disclosed in a timely and appropriate manner.
(III)Does the company publish and report its annual financial report within two months after the end of the fiscal year, and publish and report its financial reports for the first, second, and third quarters as well as its operating statements for each month before the specified deadlines?		✓	(III) The company has not yet published and filed its annual financial report within two months after the end of the accounting year, but has published and filed the financial report within the required deadline. The financial statements for the first, second, and third quarters have been approved by the Board of directors, and the operating status of each month has been announced and reported before the prescribed deadline. Please refer to the Market Observation Post System for relevant information.	No significant deviance
VIII. Has the Company disclosed other information to facilitate a better understanding of its corporate governance practices (including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors' and supervisors' continuing education, the implementation of risk management policies and risk evaluation standards, the implementation of customer relations policies, and purchasing liability insurance for directors and supervisors)?	✓		(I) Employee Rights and Care: The company implements its retirement system in accordance with the Labor Standards Act and the Labor Pension Act, has established an Employee Welfare Committee to promote various welfare measures and activities, and has formulated management regulations and work rules to protect employee rights and interests.(II) Investor Relations: The company fully discloses information through MOPS and its corporate website to keep investors informed of the company's operations, and communicates with investors through shareholders' meetings and the designated spokesperson.(III) Supplier Relations: In addition to maintaining close and cooperative relationships with suppliers, the company conducts regular evaluations of key suppliers to ensure delivery schedules and quality standards are met, and maintains good ongoing interactions with them.(IV) Stakeholder Rights: Stakeholders may communicate with and provide feedback to the company to safeguard their legitimate rights and interests. The company also publishes a sustainability report annually as a channel for stakeholder communication.(V) Director Continuing Education: The company periodically provides directors with appropriate continuing education courses.(VI) Risk Management Policy and Implementation of Risk Assessment Standards: The company focuses on its core business and implements various policies in compliance with applicable laws and regulations. A comprehensive internal control	No significant deviance
			of the company's employees and employees. The company also publishes a sustainability report annually as a channel for stakeholder communication.

Evaluation item	Status of operation			Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
		Yes	No		Summary
				system has been established and is followed consistently to minimize and avoid any potential risks.(VII) Customer Policy Implementation: The company has established operations-related departments that maintain good supply relationships with customers. For customer quality policies, including research, development and innovation, continuous improvement, rapid response, customer satisfaction, on-time delivery of customer orders, and after-sales services, dedicated personnel are appointed to continuously communicate and solve problems.(VIII)Purchasing liability insurance for directors: the Company has purchased the liability insurance for directors
IX. Please describe improvements that have already been made based on the Corporate Governance Evaluation results released for the most recent fiscal year by the Corporate Governance Center, Taiwan Stock Exchange, and specify the priority enhancement objectives and measures planned for any matters still awaiting improvement. (Not required to be filled in if not listed as an evaluated company):
Item	Evaluation Indicators	Improvement Status
Items Already Improved	4.9	The company has disclosed various employee welfare measures, retirement systems, and their implementation on its website and in the annual report.
	4.10	The company has disclosed employee personal safety and work environment protection measures and their implementation in the annual report.
	4.11	The company has disclosed water consumption and total waste weight for the past two years in the annual report.
	4.14	The company has disclosed stakeholder identification, issues of concern, communication channels, and response methods on its corporate website.
	4.16	The company has disclosed internal and external whistleblowing mechanisms for illegal (including corrupt) and unethical conduct on its corporate website.
	4.17	The company has disclosed its supplier management policies and implementation in its sustainability report.
	4.20	The company has disclosed the implementation of workplace diversity and gender equality promotion policies in its sustainability report.
	4.24	The 2024 Sustainability Report was submitted to and approved by the Board of Directors on May 8, 2025.
Items Pending Improvement	Continue to strengthen efforts on items for which points have not yet been awarded.

Note 1. Evaluation of the independence of the attesting CPA

Evaluation item	Result
	Yes	No
1. Not an employee of the Company or its affiliated enterprises.	V
2. Not a director of the Company or any of its affiliated companies (except for the position as an independent director with voting right of a company or its parent company, or a subsidiary to which the Company holds, directly or indirectly that has more than 50% shares).	V
3. Not me, my spouse, minor children, or natural shareholders who hold more than 1% of the total issued shares of the Company in the name of others or who are among the top ten holders of shares.	V
4. The spouse, a relative within the second degree of consanguinity or a relative within the third degree of consanguinity of a person listed in the preceding three paragraphs..	V
5. Not a director, supervisor, or employee of a corporate shareholder who directly holds more than five percent of the total issued shares of the Company, or a director, supervisor, or employee of one of the top five corporate shareholders.	V
6. Not a director, supervisor, or employee of a corporate shareholder who directly holds more than five percent of the total issued shares of the Company, or a director, supervisor, or employee of one of the top five corporate shareholders.	V
7. Not a director or managerial officer of the Company or holding any other position that has significant influence on the audit in the past two years.	V
8. Not a spouse or a relative within the second degree of kinship to any other director.	V
9. None of the circumstance under any subparagraph of Article 30 of the Company Act exists.	V
10. Not elected as a government, corporate or its representative according to Article 27 of the Company Act.	V
11. Other valid information: Declaration of Independence of CPAs.	V

Note 2. Criteria for evaluating the competency of CPAs:

Evaluation item	Result
Indicator 1-1: Audit Experience	Compliant
Indicator 1-2: Training hours	Compliant
Indicator 1-3: Liquidity ratio	Compliant
Indicator 1-4: Professional Support	Compliant
Indicator 2-1: CPA Load	Compliant
Indicator 2-2: Audit Engagement	Compliant
Indicator 2-3: EQCR Review Status	Compliant
Indicator 2-4: Quality Control Support Capability	Compliant
Indicator 3-1: Non-Audit Services	Compliant
Indicator 3-2: Customer Familiarity	Compliant
Indicator 4-1: Defect in External Inspection and Punishment	Compliant
Indicator 4-2: The Competent Authority Issues Letters to Improve	Compliant
Indicator 5-1: Innovative Plans or Initiatives	Compliant

Note 3. Continuing education of the corporate governance officer:

Date of continuing education	Training institutions	Course name	Number of hours
2025/07/09	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit	6
2025/08/15	Securities and Futures Market Development Foundation	2025 Insider Securities Trading Legal Compliance Briefing	3
2025/08/29	China Corporate Governance Association	Sustainability Development Briefing	3
2025/09/26	Securities and Futures Market Development Foundation	2025 Insider Trading Prevention Briefing	3

Note: The Corporate Governance Officer assumed the position on May 27, 2025.

(IV) If the company has a Remuneration Committee or Nomination Committee in place, the composition and operation of such committee shall be disclosed

Information on the Remuneration Committee members

March 28, 2026

Capacity	Qualification Name	Professional qualifications and experience	Independence analysis	Number of other public companies at which the person concurrently serves as remuneration committee member
Independent Director (Convener)	Chiu Tsung-Chih	For details, please refer to Section II, Part I, (I), Item 4 of this annual report: Director Professional Qualifications and Independent Director Independence Information Disclosure.	2
Independent Director	Tsai Yang-Chung			3
Independent Director	Hsu Yu-Ming			0

The main duties of the Remuneration Committee:

The functions of the Company's Remuneration Committee members are to perform the following duties with the care of a good administrator, and are responsible to the Board of Directors, and submit their recommendations to the Board of Directors for discussion.

(1) Formulate and regularly review the policies, systems, standards and structures for the performance evaluation and remuneration of directors and managers.
(2) Regularly assess and determine the remuneration to directors and managers.

Operation of the Remuneration Committee

(1) The Company's Remuneration Committee consists of three members, and the Board of Directors appointed on July 11, 2024 is the second term.
(2) Term of the current committee members: July 11, 2024 to June 23, 2027. During the most recent fiscal year (2025), the Remuneration Committee held 3 meetings (A). Member qualifications and attendance are as follows:

Position	Name	No. of meetings attended in person (B)	No. of meetings attended by proxy	In-person attendance rate (%) (B/A)	Remarks
Convener	Chiu Tsung-Chih	3	0	100	Note 1
Committee member	Tsai Yang-Chung	3	0	100
Committee member	Hsu Yu-Ming	3	0	100
Note 1: Re-elected on July 11, 2024. Other information required to be disclosed: I. If the board of directors does not accept, or amends, any recommendation of the remuneration committee, specify the board meeting date, meeting session number, content of the recommendation(s), the outcome of the resolution(s) of the board of directors, and the measures taken by the Company with respect to the opinions given by of the remuneration committee (e.g., if the salary/compensation approved by the board is higher than the recommendation of the remuneration committee, specify the difference(s) and the reasons): none. II. With respect to any matter for resolution by the remuneration committee, if there is any dissenting or qualified opinion of a committee member that is on record or stated in writing, specify the remuneration committee meeting date, meeting session number, content of the motion, the opinions of all members, and the measures taken by the Company with respect to the members' opinion: none. III. Summary of major matters reviewed in 2025:
DATE	CONTENT OF THE MOTION(S)		OPINION OF MEMBERS	THE COMPANY'S HANDLING OF THE OPINIONS OF THE REMUNERATION COMMITTEE
2025.01.16	Agenda: Disbursement of year-end bonuses for managers for 2024		No dissent and approved as proposed	Submitted to the Board meeting and approved by all dirwectors present at the meeting.

DATE	CONTENT OF THE MOTION(S)	OPINION OF MEMBERS	THE COMPANY'S HANDLING OF THE OPINIONS OF THE REMUNERATION COMMITTEE
2025.01.16	Agenda: Discussion of the 2025 Remuneration Committee work plan	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
2025.03.06	Agenda: Distribution of employee profit sharing and director remuneration for 2024	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
	Agenda: Distribution of employee profit sharing for managers for 2024	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
	Proposal of salary adjustment for managerial officers	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.
2025.07.31	Organizational restructuring in response to business development, including salary details for relevant managers	No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.

(V) Composition, duties and operation of the Sustainable Development Committee: The Board of Directors of the Company approved the establishment of the Sustainable Development Committee on November 7, 2024. The Committee consists of no less than three members, and at least one of whom shall be responsible for supervision. The chairman acts as the convener and the chair of the meeting. The operation of the Committee shall be conducted in accordance with the Company's Sustainable Development Committee Charter. The main responsibilities of the Committee are as follows:

I. Formulate, promote and strengthen the Company's sustainable development policy, annual plan and strategy, etc.
II. Review, track and revise the implementation of sustainable development and results.
III. Oversee the disclosure of the sustainability information and review the sustainability report.
IV. Supervising the implementation of the Company's business or other matters related to the sustainable development resolved by the Board of Directors.

Sustainability Development Committee Member Information — March 28, 2026

| Capacity | Qualification
Name | Professional qualifications and experience |
| --- | --- | --- |
| Directors
(Convener) | Liao Chen-Yi | Please refer to Two. I.(II)Information on general managers, deputy general managers, assistant general managers and heads of departments and branches in this annual report. |
| Committee member | Ou Chuan-Fu | |
| Committee member | Huang Hung-Chieh | |

Operation of the Sustainable Development Committee:

(1) The company's Sustainability Development Committee was established on November 7, 2024, with a total of 3 members.
(2) Term of the current committee members: November 7, 2024 to June 23, 2027. The Sustainability Committee held 1 meeting in 2025 (A). Member qualifications and attendance are as follows:

Position	Name	No. of meetings attended in person (B)	No. of meetings attended by proxy	In-person attendance rate (%) (B/A)	Remarks
Convener	Liao Chen-Yi	1	0	100	-
Committee member	Ou Chuan-Fu	1	0	100
Committee member	Huang Hung-Chieh	1	0	100
Other information required to be disclosed:
I. If the Board of Directors does not adopt or modifies the recommendations of the Sustainability Committee, the board meeting date, session number, agenda item, board resolution, and the company's handling of the Sustainability Committee's opinions shall be stated: No such circumstances occurred.
II. If any committee member has objections or reservations regarding a resolution of the Sustainability Committee and such objections are recorded or documented in writing, the committee meeting date, session number, agenda item, all member opinions, and the handling of such opinions shall be stated: No such circumstances occurred.
III. Summary of major matters reviewed in 2025:
DATE	CONTENT OF THE MOTION(S)		OPINION OF MEMBERS	COMPANY'S HANDLING OF THE SUSTAINABILITY COMMITTEE'S OPINIONS
2025.05.08	Preparation of the company's 2024 Sustainability Report		No dissent and approved as proposed	Submitted to the Board meeting and approved by all directors present at the meeting.

(VI)Promotion of sustainable development – implementation status and deviations from the sustainable development best practice principles for TWSE/TPEx listed companies and the reasons

Item	Implementation	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary
I.	Has the Company established a governance framework for promoting sustainable development, and established an exclusively (or concurrently) dedicated unit to be in charge of promoting sustainable development? Has the board of directors authorized senior management to handle related matters under the supervision of the board?	✓
II.	Does the company conduct risk assessments of environmental, social and corporate governance (ESG) issues related to the company's operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?	✓
Material Issue	Risk Assessment Description	Explanation
Response Measures	Environmental Impact and Management	Effectively reduce pollution emissions and environmental impact 1. Obtained ISO 14001 Environmental Management System certification. 2. Conduct regular greenhouse gas emission inventories in accordance with ISO 14064-1; continuously implement carbon reduction measures based on inventory results. 3. Conduct annual internal audit plans to inspect that all operational processes comply with relevant environmental regulations.
Energy Management	1. Periodically review and optimize energy-saving targets. 2. Strengthen electricity usage management to reduce unnecessary energy consumption and improve power efficiency. 3. Select equipment with high energy efficiency and energy-saving design.
		Social

Item	Implementation
	Yes	No	Summary
				2. Fire safety drills and emergency evacuation exercises are held regularly every six months to enhance employee safety awareness and emergency response capabilities.
		Corporate Governance	Regulatory Compliance	Implement internal control mechanisms to ensure all personnel and operations comply with applicable laws and regulations.
			Customer Relationship Management	1. Communicate with customers regularly through questionnaires; conduct internal reviews, improvements, and follow-ups based on customer satisfaction survey results.2. The company has a comprehensive customer complaint handling mechanism.
			Risk Management	1. Establish risk indicators and monitor changes in environmental and regulatory trends through regular monitoring.2. Dedicated units assess potential impacts on the company and formulate response plans.
			Information Security	1. A dedicated information security organization oversees system planning, technology implementation, and execution monitoring, with a regular reporting mechanism in place.2. High-risk issues are prioritized through regular risk assessments, vulnerability scans, and audit results.3. Preventive, detection, response, and recovery measures are established covering all stages of the information lifecycle.4. Employee awareness and system maturity are strengthened through training, drills, and PDCA cycles.
III. Environmental Issues (I) Has the Company set an environmental management system designed to industry characteristics?	✓		(I) The Company's management of the environment is handled pursuant to the relevant domestic laws and regulations on environmental protection. The Company has established an environmental safety unit and is committed to environmental management and maintenance.The company has obtained ISO 14001 Environmental Management System certification (Certificate No.: 34632/C/0001/UK/En; validity period: December 19, 2025 to December 18, 2028).	No significant deviance
(II) Is the Company committed to improving energy efficiency and using recycled materials with low impact on the	✓		(II) The company continues to promote various energy conservation and reduction measures, prioritizing1. the replacement of aging equipment and the introduction of high-efficiency, energy-saving equipment to reduce overall energy consumption and improve energy use efficiency. Using	No significant deviance

Item	Implementation
	Yes	No	Summary
environment?			2023 as the base year, although electricity consumption in 2026 increased due to expanded operations, continuous energy-saving improvement measures have led to a significant decline in energy intensity per unit of revenue — from 16,329 kWh/million NTD in FY2023 to 13,527 kWh/million NTD in 2025, a reduction of approximately 17.2%. This demonstrates continuous improvement in energy use efficiency and the effectiveness of energy-saving measures. The company's target for energy intensity from 2027 to 2031 is a reduction of 5% per year, to be achieved through continued promotion of high-efficiency equipment adoption and process improvements to further reduce energy consumption.2. In terms of waste management, the company is committed to reduction and resource recycling, continuously promoting source reduction, classification management, and legal disposal mechanisms to minimize environmental impact and ensure regulatory compliance. Waste is classified and managed according to its nature, including general industrial waste and hazardous industrial waste, and is entrusted to qualified waste disposal contractors for downstream processing, ensuring compliant final disposal and reduced environmental burden. Waste paper, sludge, and waste liquids generated by the company are all recycled through processing contractors, demonstrating the company's commitment to sustainable environmental protection.
(III) Has the Company evaluated the potential risks and opportunities posed by climate change for its business now and in the future and adopted relevant measures to address them?	✓		(III) Climate change may have a significant impact on the company's operations, revenues, or expenditures. The company has conducted a preliminary assessment of related potential risks and opportunities, and continues to monitor the operational impacts of extreme weather events and regulatory changes, taking appropriate measures accordingly.The following management measures have been adopted to address physical risks arising from climate change:1. Regular drills and disaster prevention organization training are conducted.2. During typhoons, earthquakes, heavy rainfall, and similar events, on-duty personnel and security guards are stationed at the facilities to monitor conditions in real time.3. The environmental safety unit inspects all plant facilities before the typhoon season and prepares sandbags in advance to respond to emergencies.Going forward, the company will continue to adopt the TCFD framework and promote climate scenario analysis to progressively strengthen the identification of climate-related risks and opportunities and the assessment of their financial impacts.
(IV) Did the company collect data for the past two years on greenhouse gas emissions, volume of water consumption, and the total weight of waste, and establish policies for greenhouse gas reduction, reduction of water consumption, or management of other wastes?	✓		(IV)1. For the company's greenhouse gas emissions for the most recent two fiscal years, please refer to page 39 of this annual report.2. The company has long been attentive to water resource conservation. In terms of water-saving initiatives, comprehensive daily water conservation practices have been fully implemented. Water consumption data for the most recent two years is as follows:
		Year	Water Consumption (million liters)	Water Intensity (million liters / million NTD revenue)
		2024	140.2	0.115
		2025	170.7	0.128
		Note 1: Data scope covers the Taiwan headquarters, including the Kaohsiung plant and Taipei office.

Item

Implementation

Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons

Yes

Summary

Note 2: Water consumption data has not yet been verified by a third party.In 2025, the company installed a UF/RO(Ultrafiltration/Reverse Osmosis) pure water recovery system. Process wastewater is now further recovered and reused — recycled water is used in air pollution control equipment, cooling towers, and facility domestic water supply — to enhance water resource reuse and reduce overall water consumption. The company will continue to implement various water reduction measures going forward.3. Through collaboration between the procurement and manufacturing departments, the company actively promotes process waste reduction and recycling and reuse measures to effectively control waste generation. Waste Output for the Most Recent Two Fiscal Years

Waste Category

2024

2025

Hazardous Industrial Waste (metric tons)

264.03

276.00

General Industrial Waste (metric tons)

166.77

205.83

Total Weight (metric tons)

430.8

481.83

Waste Intensity (metric tons / million NTD revenue)

0.353

0.363

Note 1: Data scope covers the Taiwan headquarters, including the Kaohsiung plant and Taipei office.Note 2: Waste data has not yet been verified by a third party. Although total waste volume and intensity both increased in FY2025, the proportion of hazardous industrial waste decreased from 61% in 2024 to 57% in 2025. The company's target for 2027 to 2031 is to reduce the proportion of hazardous waste to below 50%, ensuring that hazardous waste is fully utilized and recycled to achieve effective resource circularity.

IV. Social Issues(I) Has the company formulated relevant management policies and procedures in accordance with relevant laws and regulations and international human rights conventions?

✓

(I) The work rules and managerial regulations followed by the employees of the Company are established pursuant to the Labor Standards Act and related laws and regulations, to protect the legitimate rights and interests of employees.(II) The Company complies with relevant laws and regulations and the International Bill of Human Rights, such as gender equality, the right to work, and prohibition of discrimination. To fulfill its responsibility to protect human rights, the Company has established relevant management policies and procedures, including:1. Presenting a corporate policy or statement on human rights.2. Evaluating the impact of the company's business operations and internal management on human rights, and establishing corresponding handing processes.3. Reviewing on a regular basis the effectiveness of the corporate policy or statement on human rights.4. In the event of any infringement of human rights, the company shall disclose the processes for handling of the matter with respect to the stakeholders involved.(III)The complies with the internationally recognized human rights of labor, including the freedom of association, the right of collective bargaining, caring for vulnerable groups, prohibiting the use of child labor, eliminating all forms of forced labor, eliminating recruitment and employment discrimination, and shall ensure that their human resource policies do not contain differential treatments based on gender, race, socioeconomic status, age, or marital and family status,

No significant deviance

(II) The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public.

(III) The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work, and the right to work in the public. The company is responsible for the management of the problem of human rights, including the right to work, the right to work, and the right to work, and the right to work, and the ---

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Item	Yes	No	Summary
			so as to achieve equality and fairness in employment, hiring conditions, remuneration, benefits, training, evaluation, and promotion opportunities. The Company provides an effective and appropriate anonymous complaint mechanism to ensure the equality and transparency of the complaint process. Meanwhile, the Company has established a clear, convenient and unobstructed channel for employees to raise complaints, and respond appropriately to employees' complaints.(IV) To implement human rights issues, the Company plans in-service training during the orientation training period for new recruits. The training covers corporate culture, personnel regulations, employee benefits, human rights policies, and safety and health education, to help employees adapt to the environment quickly and ensure that they understand the corporate value and work rules.(V) Specific management measures include "Procedures for Ethical Management and Guidelines for Conduct" and "Procedures for Sustainable Development Management.
(II) Has the Company established and implemented reasonable employee welfare measures (include salary/compensation, leave, and other benefits), and are business performance or results appropriately reflected in employee salary/compensation?	✓		(II) The Company has established the remuneration, leave and other welfare policies in accordance with the Labor Standards Act and related laws and regulations.1. The Company has established the Employee Welfare Committee to organize various employee activities and provide employee benefits, such as employee travel subsidies, birthday celebrations, wedding gifts, grievance subsidies, and discounts in designated shops for employees and their families. For details, please refer to "V.Labor Relations" of this annual report.2. The company's Articles of Incorporation stipulate that between 2% and 15% of annual profits shall be allocated for employee profit sharing distributions, of which at least 20% must be distributed to frontline employees, thereby reflecting business performance in employee compensation.
(III) Does the Company provide employees with a safe and healthy working environment, and implement regular safety and health education for employees?	✓		(III)The Company has a dedicated unit and personnel:1. The management and implementation of occupational safety and health, to create a safe, healthy, comfortable and friendly working environment; various health checkup packages are planned and executed every year; the parental unpaid leaves are implemented pursuant to laws, while the family care leave, menstrual leave, tocolysis leave, maternity inspection leave, maternity leave, paternity leave are also furnished.2. Occupational Safety and Health Committee holds a meetings on a quarterly basis to discuss occupational safety and health issues. To ensure that employees effectively participate in occupational safety and health management, workers or labor representatives can express their views and suggestions on environmental protection, safety, health and health management issues through email, suggestion boxes, proposals, and labor-management meetings. To ensure the effectiveness of improvement measures, the Company also regularly reviews and confirms the implementation of improvement plans to constantly reduce potential environmental, safety and health risks, and ensure the effective operation of workplace safety and health management.3. We regularly monitor hazardous factors, such as environmental monitoring, noise monitoring, drinking water and effluent examination, and fire equipment examination every six months. Moreover, we also provide appropriate personal protective equipment, such as earplugs, respiratory protection equipment, etc., to reduce the impact of dust and noise on health.4. In 2025, multiple training sessions were held, with a total of 1,207 participant attendances and a cumulative training duration of 3,638 hours. The training courses cover hazard identification and control, emergency response drills, quality manufacturing and information security. In doing this, we ensure that our employees understand and	No significant deviance
			enhancement of employee safety and health education for employees.
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As of the printing date of this annual report, there has been no occupational accident or fire incident in the Company. \| \| \| (IV) Has the Company established effective career development training programs for employees? \| ✓ \| \| (IV)The Company establishes the annual education and training plan every year, and systematically implements the training plan and mechanism for reserve managers and incumbent managers, while conducting relevant training based on the Company's business development and employees' career capabilities.For further details, please refer to "V.Labor Relations" in this annual report (page 69). \| \| \| (V) Does the company comply with the relevant laws and international standards with regards to customer health and safety, customer privacy, marketing and labeling of products and services, and so on topics, and implement consumer or customer protection and grievance policies? \| ✓ \| \| (V)1. The Company complies with relevant laws and international standards on the marketing and labeling of products and services, and meets the requirements of RoHS.2. The company has obtained the IECQ QC080000 Hazardous Substance Process Management (HSPM) System certificate, valid from June 6, 2025 to April 5, 2028.3. The company implements secure management and confidentiality of customer data, has established a "Personal Data Protection Management Policy" to protect customer privacy, and has a customer complaint mechanism in place with clearly defined procedures for handling customer complaints (and returns) to resolve customer issues.4. A customer satisfaction survey is conducted each year to understand customer views and feedback. We make immediate improvements to customer problems and improve product and service quality. \| \| \| (VI) Has the company formulated supplier management policies requiring suppliers to comply with relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights, and what is the status of their implementation? \| ✓ \| \| (VI)1. The company has long maintained a high level of commitment to corporate social responsibility, environmental protection, business ethics, and integrity management. With reference to the RBA Code of Conduct and international initiatives — including the UN Global Compact, the Universal Declaration of Human Rights, and the principles of SA8000 concerning human rights, labor standards, environmental protection, and anti-corruption — the company has formulated a Supplier Code of Conduct. This enables suppliers to fully understand the scope of work, technical specifications, delivery schedules, and safety standards, as well as associated risks. All relevant rights and obligations, payment terms, and breach penalties are clearly stated in contracts as the basis for supplier performance.All suppliers (including new suppliers) undergo compliance verification against environmental and social standards during the assessment stage. Suppliers are required to provide documentation including test reports, safety data sheets, hazardous substance non-use declarations, and ICP reports, which are subject to strict review by the quality management unit to ensure that the entire supply chain fully complies with international environmental regulations and social responsibility standards.2. The company continuously promotes awareness among suppliers on topics including environmental protection, occupational health and safety, human rights, and information security. Through regular audits and self-assessment mechanisms, the company monitors supply chain performance, and proactively provides guidance and improvement recommendations, with the aim of jointly building a sustainable and responsible green supply chain.3. Each year, risk management is implemented through "Supplier Evaluations" and "Supplier Incoming Quality Assessment Forms." Regular audits and supplier self-assessments are used to comprehensively assess suppliers' performance and compliance with the Code of Conduct across quality, environmental, and occupational health and safety dimensions. \| No significant deviance \| --- \| Item \| Implementation \| \| \| Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary \| \| \| V. Does the company refer to international reporting standards or guidelines when preparing its sustainability report and other reports disclosing non-financial information? Does the company obtain third party assurance or certification for the reports above? \| \| ✓ \| The company's sustainability report is prepared primarily in accordance with the GRI Standards (2021 edition) published by the Global Reporting Initiative, with additional reference to industry-specific metrics from the Sustainability Accounting Standards Board (SASB). The report is published following presentation to the Board of Directors and is uploaded to the regulatory authority's platform and the company's official website. However, the 2025 Sustainability Report has not yet obtained assurance or verification from a third-party verification body. \| As described in the summary. \| \| VI. If the Company has adopted its own sustainable development best practice principles based on the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" for TWSE/TPEx Listed Companies, please describe any deviation from the principles in the Company's operations: The Company has established the "Sustainable Development Best Practice Principles" and will implement accordingly; there is no material deviation from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies." \| \| \| \| \| \| VII. Other important information to facilitate better understanding of the company's promotion of sustainable development: The Company conducts various corporate social responsibility activities from time to time: 1. Donations to social welfare organizations and welfare foundations in 2025 include the following: Kaohsiung City Cerebral Palsy Association Kaohsiung City Joy Association of Down Syndrome Patients Kaohsiung City Zhiquan Association for Caring Physically Challenged Children Are Us Foundation Genesis Social Welfare Foundation 2. Kaohsiung Port Entrepreneur Association 3. Sponsored by Taiwan Science and Technology Public Welfare Association - Science and Technology Hope Tour 4. Kaohsiung Senior High School Ren'ai Foundation 5. Kaohsiung City Government's Education Bureau - Donation of milk subsidy for Sanyuan Township School \| \| \| \| \| --- (VII) Climate-related information (1)Implementation of climate-related information \| Item \| Execution status \| \| --- \| --- \| \| 1. Describe the monitoring and governance of climate-related risks and opportunities by the Board of Directors and management. \| The company established the Sustainability Development Committee in 2024. The functional working groups under the committee identify potential risks related to the impact of climate change on future market opportunities and company operations, and formulate corresponding mitigation and adaptation plans, which are submitted to the Sustainability Committee. The Sustainability Committee understands and develops relevant risk response measures. The committee convenes at least once per year and reports regularly to the Board of Directors — the highest governance body — on the management progress of climate change, including major trends, key data, disclosure progress, external assessment results, and overall implementation effectiveness. \| \| 2. Describe how the identified climate risks and opportunities affect the Company's business, strategy and finance (short-, medium-, and long-term). \| Short-term impacts: Fluctuations in energy prices and the effects of extreme weather events on supply chain availability and pricing, leading to increased operational costs. Mid-term impacts: Tightening carbon emission regulations, costs associated with transitioning to low-carbon technologies, and shifts in customer behavior requiring companies to adjust their business models to reduce transition risk impacts. Long-term impacts: The global transition toward net zero and a market shift toward low-carbon products; the company is investing in the development of low-carbon products and the use of renewable energy to pursue new business opportunities. \| \| 3. Describe the financial impact of extreme climate events and transformation actions. \| Extreme weather events: 1. Natural disasters, such as typhoons, earthquakes and epidemics, may cause disruptions in operations and increase insurance costs and disaster recovery expenses. 2. Climate change may affect the stability of the supply chain and increase procurement costs. Transformation action: 1. Investing in renewable energy development and advancing energy-saving technologies increases short-term operating costs. 2. Purchasing carbon credits and government carbon tax levies increase the company's financial burden. \| \| 4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system. \| The Company has established a sound governance structure through the Sustainable Development Committee to ensure that climate risk management is included in the overall risk management framework. This way, we are able to effectively identify, assess and respond to climate-related risks. \| \| 5. If a scenario analysis is used to assess the resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and main financial impacts used shall be described. \| The company is currently collecting relevant data and will make appropriate disclosures once the data is complete. \| \| 6. If a transition plan exists for managing climate-related risks, describe the plan's content and the indicators and targets used to identify and manage physical risks and transition risks. \| The company is currently collecting relevant data and will make appropriate disclosures once the data is complete. \| \| 7. If internal carbon pricing is used as a planning tool, the basis for setting the pricing shall be stated. \| The Company currently does not use internal carbon pricing as a planning tool. \| \| 8. If climate-related goals have been set, specify the activities covered, the scope of GHG emissions, the planned schedule, and the progress made in each year. If carbon credits or renewable energy certificates (RECs) are used to achieve the relevant targets, the source and quantity of carbon credits to be offset or the quantity of renewable energy certificates (RECs) shall be specified. \| The company is currently collecting relevant data and will make appropriate disclosures once the data is complete. \| \| 9. GHG inventory and assurance status, as well as reduction goals, strategies, and concrete action plans \| The Company's paid-in capital is less than NTD 2 billion, the information on GHG inventories and assurance, reduction goals, strategies and concrete action plans shall be carried out in accordance with the following schedule: 1. For the parent company (individual basis), inventory disclosure has been completed, and assurance disclosure will be completed from 2028 onwards. 2. Subsidiaries in the consolidated financial report shall complete the disclosure of inventory information from 2027 and have the information disclosure assured by 2029. 3. The reduction targets, strategies and concrete action plans of the Company (including subsidiaries in the consolidated financial report) shall be disclosed from 2027. \| --- # 1-1 GHG inventory and assurance for the past 2 years # 1-1-1 GHG inventory information \| Disclose greenhouse gas emissions (metric tons CO2e), intensity (metric tons CO2e / million NTD), and data coverage scope for the most recent two fiscal years. \| \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| \| Basic information of the Company ☐Companies with paid-in capital of NT$10 billion or above; steel industry; cement industry ☐Companies with paid-in capital of NT$5 billion or above but below NT$10 billion ■Companies with paid-in capital below NT$5 billion \| \| According to the regulations of the Sustainable Development Roadmap for Listed Companies, the following should be at ■Parent company individual inventory ☐Subsidiary inventory under consolidated financial report ☐Parent company individual assurance ☐Subsidiary assurance under consolidated financial report \| \| \| \| GHG emissions in the past two years \| \| \| \| \| \| Total GHG emissions in 2024 (Reporting period: January 1, 2024 to December 31, 2024) \| Scope 1 \| Total emissions (tCO2e) \| Operating income (NT$ million) \| Intensity (tCO2e/NT$ million) \| \| \| The Company \| 237.2654 \| 1,221 \| 0.1943 \| \| \| Scope 2 \| Total emissions (tCO2e) \| Operating income (NT$ million) \| Intensity (tCO2e/NT$ million) \| \| \| The Company \| 7,958.9383 \| 1,221 \| 6.5184 \| \| Total GHG emissions in 2025 (Reporting period: January 1, 2025 to December 31, 2025) \| Scope 1 \| Total emissions (tCO2e) \| Operating income (NT$ million) \| Intensity (tCO2e/NT$ million) \| \| \| The Company \| 286.6980 \| 1,329 \| 0.2157 \| \| \| Scope 2 \| Total emissions (tCO2e) \| Operating income (NT$ million) \| Intensity (tCO2e/NT$ million) \| \| \| The Company \| 8,523.6565 \| 1,329 \| 6.4136 \| \| Note 1: Direct emissions (Scope 1, i.e. directly from emission sources owned or controlled by the Company), indirect emissions from energy (Scope 2, i.e. indirect GHG emissions from imported electricity, heat or steam), and other indirect emissions. Note 2: The data coverage of direct emissions and indirect emissions from energy shall be handled in accordance with the schedule specified in Paragraph 2, Article 4-1 of the Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies (hereinafter referred to as “these Rules”). Note 3: GHG standard: GHG Protocol (GHG Protocol) or ISO 14064-1 issued by the International Organization for Standardization (ISO). Note 4: The intensity of GHG emissions can be calculated per unit of product/service or turnover, but at least the data calculated in terms of turnover (NTD million) should be stated. Note 5: For the 2025 greenhouse gas inventory assurance, complete assurance information and related data will be disclosed in the Sustainability Report. \| \| \| \| \| # 1-1-2 GHG assurance information \| Describe the assurance status in the past two years up to the date of publication of the annual report, including the scope of assurance, the assurance entity, the assurance standards and the assurance opinions. \| \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| \| The Company's GHG inventory is as follows: \| \| \| \| \| \| Year \| Assurance scope \| Assurance entity \| Assurance standards \| Assurance opinion \| \| 2024 \| Parent company: Ever Ohms Tech Kaohsiung Headquarters, Taipei Office \| Legendary & Steadfast Accountancy \| Assurance Standard 3410 \| Scope 1 and Scope 2: Limited assurance. \| \| 2025 \| Parent company: Ever Ohms Tech Kaohsiung Headquarters, Taipei Office \| Legendary & Steadfast Accountancy \| Assurance Standard 3410 \| Complete assurance information for the 2025 greenhouse gas inventory will be disclosed in the Sustainability Report. \| # 1-2 GHG reduction goals, strategies and concrete action plans \| Describe the GHG reduction base year and its data, reduction targets, strategies, and concrete action plans, and achievement of the reduction targets. \| \| --- \| \| Not applicable. \| --- (VIII) Ethical Corporate Management – Implementation Status and Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| Evaluation item \| Status of operation \| \| \| Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary \| \| \| I. Establishment of ethical corporate management policies and programs (I) Does the company have an ethical corporate management policy approved by its Board of Directors, and bylaws and publicly available documents addressing its corporate conduct and ethics policy and measures, and commitment regarding implementation of such policy from the Board of Directors and the top management team? \| ☑ \| \| (I) The Company has established the “Ethical Corporate Management Best Practice Principles” and the “Procedures for Ethical Management and Guidelines for Conduct” conforming to the related laws and regulations, with resolutions adopted by the Board and the executives, to implement the promises in the operating policies actively. \| No significant deviance \| \| (II) Whether the company has established an assessment mechanism for the risk of unethical conduct; regularly analyzes and evaluates, within a business context, the business activities with a higher risk of unethical conduct; has formulated a program to prevent unethical conduct with a scope no less than the activities prescribed in Article 7, paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/TPE Listed Companies? \| ☑ \| \| (II) In the “Ethical Corporate Management Best Practice Principles,” the Company specifies the guidelines regarding the conflict of interests, legal compliance, trades being the Company’s assets, participation of political activities, and related conducts. Enhancement of the promotions to the related persons. \| \| \| (III) Does the company clearly set out the operating procedures, behavior guidelines, and punishment and appeal system for violations in the unethical conduct prevention program, implement it, and regularly review and revise the plan? \| ☑ \| \| (III) The “Procedures for Ethical Management and Guidelines for Conduct” are established to specify the related matters to be paid attentions to when conducting business, with the implementation of execution and review. \| \| \| II. Ethical Management Practice (I) Does the company assess the ethics records of those it has business relationships with and include ethical conduct related clauses in the business contracts? \| ☑ \| \| (I) The Company complies with the “Procedures for Ethical Management and Guidelines for Conduct,” and based on the principles of price inquiry, comparison and negotiation, to determine suppliers, and face customers with a fair and impartial attitude, without tolerance of competitive advantages resulted from unethical conducts. \| No significant deviance \| \| (II) Has the company set up a dedicated unit to promote ethical corporate management under the board of directors, and does it regularly (at least once a year) report to the board of directors on its ethical corporate management policy and program to prevent unethical conduct and monitor their implementation? \| ☑ \| \| (II) The Company has not yet established a dedicated unit responsible for promoting ethical corporate management under the Board, but has appointed the Audit Office as the dedicated handling unit, for the operations related to amendments and implementation of the “Procedures for Ethical Management and Guidelines for Conduct,” its supervision, while assisting the Board and management to audit and evaluate matters related to the implementation of ethical management, and reporting to the Board if necessary. \| No significant deviance \| \| (III) Has the company established policies to prevent conflict of interests, provided appropriate communication \| ☑ \| \| (III) 1. Employees: the Company has established the “Procedures for Ethical Management \| No significant deviance \| \| \| \| \| guidelines, and the “Procedures for Ethical Management and Guidelines for Conduct” and the “Procedures for Ethical Management and Guidelines for Conduct” are established to provide the necessary information to the employees, employees, and the organization to ensure that the employees are informed and informed about the situation, and the employees are informed and informed about the situation. \| \| --- \| Evaluation item \| Status of operation \| \| \| Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary \| \| \| and complaint channels, and properly implemented such policies? \| \| \| and Guidelines for Conduct,” to specify the related matters to be paid attentions to when conducting business, with the continuous promotion. For any conflict of interests, related persons shall recuse from conducting. 2. Directors: the Company’s “Rules of Procedure for Board of Directors Meetings” specify the system of director’s recusal for the conflicts of interests. Directors should insist a high degree of self-discipline, and when they or the entities they represent have an interest in the proposals listed on the board meetings, they should explain their interests at the concerned board meeting and recuse themselves. \| \| \| (IV)Does the company have effective accounting and internal control systems in place to enforce ethical corporate management? Does the internal audit unit follow the results of unethical conduct risk assessments and devise audit plans to audit compliance with the systems to prevent unethical conduct or hire outside accountants to perform the audits? \| ☑ \| \| (IV)The company has established a sound "accounting system" and "internal control system" and indeed implemented the integrity of operation. The auditors regularly conduct internal control audits in accordance with the audit plan and report the audit results to the board of directors. The certified accountants also conduct annual audits of the "internal control system" to ensure the implementation of honest operation. \| \| \| (V) Does the company provide internal and external ethical corporate management training programs on a regular basis? \| ☑ \| \| (V) The company conducts multiple integrity and ethics-related training programs covering topics including: anti-corruption, trade secret protection, insider trading prevention, intellectual property rights, regulatory compliance, and information security. New employee onboarding training emphasizes the "Employee Code of Ethical Conduct" and "Business Conduct Guidelines" to ensure all employees understand and comply with the company's Integrity Management Code and related policies. 1. Board of Directors members: Regular promotion of the company's Integrity Management Code and communication of related policy implementation. 2. Employees: In 2025, a total of 99 employees completed integrity and ethics-related training, achieving a completion rate of 23.80% — an increase of 4.03 percentage points compared to the 19.77% completion rate in 2024 — reflecting the company's ongoing commitment to promoting integrity training and increasing employee participation. Among those completing training: 75 were female (34.72%) and 24 were male (12.00%); 30 were in managerial positions (38.96%) and 69 were in non-managerial positions (20.35%). 3. Suppliers: Suppliers are required to sign an "Anti-Bribery Declaration," which includes integrity-related commitments. The supplier signing rate is 100%. \| No significant deviance \| --- \| Evaluation item \| Status of operation \| \| \| Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary \| \| \| III. Operation of the whistle-blowing system(I) Has the company established specific whistle-blowing and reward procedures, set up conveniently accessible whistle-blowing channels, and appointed appropriate personnel specifically responsible for handling complaints received from whistle-blowers? \| ✓ \| \| (I) The company has an employee opinion mailbox. If an employee finds any violation of laws and regulations or code of ethical conduct, the company will have a special person to report and deal with it. If the violation occurs, the general manager and the management department will jointly agree on the seriousness of the case and give corresponding punishment and punishment. \| No significant deviance \| \| (II) Has the company established standard operation procedures for investigating the complaints received, follow-up measures taken after investigation, and mechanisms ensuring such complaints are handled in a confidential manner? \| ✓ \| \| (II) The company has established an internal communication channel, and the management department is responsible for handling relevant affairs and adopting a confidentiality mechanism for relevant information. \| \| \| (III)Has the company adopted proper measures to protect whistle-blowers from retaliation for filing complaints? \| ✓ \| \| (III) In order to protect the whistle-blower, the management department shall be responsible for the overall protection of the whistle-blower to prevent improper disposal of the whistle-blower. \| \| \| IV. Strengthening Information DisclosureDoes the company disclose its ethical corporate management policies and the results of their implementation on its website and the Market Observation Post System (MOPS)? \| ✓ \| \| The “Ethical Corporate Management Best Practice Principles,” the “Procedures for Ethical Management and Guidelines for Conduct,” and the “Code of Conducts” established by the Company have been disclosed on the MOPS and the Investor Relation Section of the Company’s website. In the future, the real-time announcement and the information updates will be made on the MOPS and company website as required by laws. \| No significant deviance \| \| V. If the company has adopted its own ethical corporate management best practice principles based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe any deviations between the principles and their implementation: The Company complies with the “Ethical Corporate Management Best Practice Principles” without material deviations. \| \| \| \| \| \| VI. Other important information to facilitate a better understanding of the status of operation of the company’s ethical corporate management policies (e.g., the company’s reviewing and amending of its ethical corporate management best practice principles): none. \| \| \| \| \| (IX) Other significant information that will provide a better understanding of the state of the company's implementation of corporate governance may also be disclosed: None. (X) Implementation of internal control system 1. Statement on Internal Control: For detailed information, please visit the Market Observation Post System > Single Company > Corporate Governance > Company Regulations / Internal Controls > Internal Control Statement Announcement: (https://mopsov.twse.com.tw/nas/cont06/c6834114011150223.pdf) 2. For companies that have engaged certified public accountants to conduct a special review of their internal control system, the accountant's review report shall be disclosed: None. (XI) Material resolutions of a shareholders meeting or a board of directors meeting during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: 1. Resolutions of a shareholders meeting and implementation thereof: --- 2. Material resolutions of board meetings: \| Meeting date \| Important resolutions \| \| --- \| --- \| \| 2025.01.16 Board of directors \| 1. Proposal of the 2025 budget \| \| \| 2. Proposal of year-end bonus distribution of managers for 2024 \| \| \| 3. Formulate a bill on "General Principles for Pre-approval of Non-assured Services Policies" \| \| \| 4. Proposal to add and extend credit facilities from various banks. \| \| 2025.03.06 Board of directors \| 1. Proposal of distribution of remuneration to employees and directors for 2024 \| \| \| 2. Proposal of 2024 Business Report, Parent-only and Consolidated Financial Statements \| \| \| 3. 2024 Earnings Distribution Proposal \| \| \| 4. FY2024 Distribution of Employee Profit Sharing for Managers \| \| \| 5. Proposal of statement of internal control system for 2024 \| \| \| 6. Proposal of fees for the appointment of CPAs \| \| \| 7. Proposal of evaluation of the independence and competence of the 2025 CPAs \| \| \| 8. Proposal of amendment to the Company's "Articles of Incorporation" \| \| \| 9. Amendment to the "Payroll Cycle" section of the Internal Control System \| \| \| 10. Proposal of the Company's intention to not to continue the private placement of common shares approved by the 2024 AGM \| \| \| 11. Proposal of matters related to the convening of the 2025 AGM \| \| \| 12. Proposal of salary adjustment for managers \| \| 13. Proposal of adding and extending credit facilities and ratification from various banks \| \| \| 2025.05.08 Board of directors \| 1. Draft of the company and subsidiaries' Q1 2025 Consolidated Financial Report and Accountant's Review Report \| \| \| 2. Preparation of the company's 2024 Sustainability Report \| \| \| 3. Application for extension of credit facilities from various financial institutions \| \| \| 4. Application to International Bills Finance Corporation for bond/bill repurchase transactions \| \| 2025.05.27 Board of directors \| 1. Election of Vice Chairman \| \| \| 2. Personnel change for General Manager and Chief Operating Officer \| \| \| 3. Personnel changes for CFO, Finance Officer, Chief Accounting Officer, and Corporate Governance Officer \| --- \| Meeting date \| Important resolutions \| \| --- \| --- \| \| 2025.07.31 Board of directors \| 1. Draft of the company and subsidiaries' Q2 2025 Consolidated Financial Report and Accountant's Review Report \| \| \| 2. Organizational restructuring in response to business development, including salary details for relevant managers \| \| \| 3. Removal of non-compete restrictions applicable to company managers \| \| \| 4. Removal of non-compete restrictions applicable to current directors \| \| \| 5. Designation of senior management responsible for supervising and controlling the company's derivative financial instrument transactions \| \| \| 6. Designation of the custodian of the company's dedicated seal for endorsements and guarantees \| \| \| 7. Authorization of personnel for the company's bond/bill repurchase transaction applications \| \| 2025.11.04 Board of directors \| 1. Draft of the company and subsidiaries' Q3 2025 Consolidated Financial Report and Accountant's Review Report \| \| \| 2. Formulation of the 2026 audit plan \| \| \| 3. Capital increase for Liz Electronics (Nantong) Co., Ltd. \| \| \| 4. Amendment to the company's "Management Procedures for Reporting Insider Appointment and Resignation Data" \| \| \| 5. Amendment to the company's "Procedures for Applying to Suspend and Resume Trading" \| \| \| 6. Amendment to the company's "Property, Plant and Equipment Cycle" internal control procedures \| \| \| 7. Amendment to the company's "Investment Cycle" internal control procedures \| \| \| 8. Amendment to the company's "Procedures for Handling Reports of Illegal, Unethical, or Dishonest Conduct" \| \| \| 9. Application for new and extended credit facilities from various financial institutions \| \| 2026.01.22 Board of directors \| 1. 2026 Budget Proposal \| \| \| 2. Proposal of salary adjustment for managerial officers \| \| \| 3. Disbursement of year-end bonuses for managers for 2025 \| \| \| 4. Amendment to the "Payroll Cycle" section of the Internal Control System \| \| \| 5. Establishment of the definition and scope of "frontline employees" for the company \| \| \| 6. Application for new and extended credit facilities from various financial institutions \| \| 2026.02.26 Board of directors \| 1. Distribution of employee profit sharing and director remuneration for 2025 \| \| \| 2. 2025 Business Report, individual and consolidated financial statements \| \| \| 3. 2025 Earnings Distribution Proposal \| \| \| 4. Distribution of cash from capital surplus \| \| \| 5. Distribution of employee profit sharing for managers for 2025 \| \| \| 6. 2025 Internal Control System Statement \| \| \| 7. Assessment of the independence and competency of the company's 2026 signing certified public accountants \| \| \| 8. Amendment to the company's Articles of Incorporation \| \| \| 9. Amendment to the company's Rules of Procedure for Shareholders' Meetings \| \| \| 10. Amendment to the company's Sustainability Development Best Practice Principles \| \| \| 11. Matters related to convening the company's 2026 Annual General Shareholders' Meeting \| \| \| 12. Application for extension and ratification of credit facilities from various financial institutions \| (XII) Where, during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, a director or supervisor has expressed a dissenting opinion with respect to a material resolution passed by the board of directors, and said dissenting opinion has been recorded or prepared as a written declaration, disclose the principal content thereof: None. --- 45 # IV. Information on the professional fees of the CPAs: Unit: NTD Thousands \| Name of accounting firm \| Names of CPAs \| Audit Period \| Audit fees \| Non-audit fees (Note) \| \| \| \| Total \| Remarks \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| \| \| \| System design \| Industrial and commercial registration \| Human resource \| Others \| \| \| \| Deloitte Taiwan \| Wang Teng-Wei \| 2025.01.01 ~ 2025.12.31 \| 3,000 \| - \| - \| - \| 460 \| 3,460 \| - \| \| \| Hsu Kai-Ning \| \| \| \| \| \| \| \| \| Note: Other non-audit fees are for the preparation of sustainability reports and transfer pricing reports (I) When the accounting firm is replaced, and the audit fees paid for the year in which the change took place are lower than those paid for the financial year immediately preceding the change, the amount of the audit fees before and after the change and the reason shall be disclosed: none. (II) When the audit fees paid for the current year are lower than those paid for the immediately preceding financial year by 10 percent or more, the amount and percentage of and reason for the reduction in audit fees shall be disclosed: none. V. Change of Accountant Information: No such circumstances occurred. VI. Where the company's chairperson, general manager, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed: No such situation. --- # VII. Changes in equity transfer and equity pledge of directors, managers and shareholders holding more than $10\%$ of the shares during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report (I) Changes in the number of shares of directors, managers and major shareholders Unit: shares \| Job title \| Name \| 2025 \| \| Current year through March 28 \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| \| Shareholding increase (or decrease) \| Pledged shareholding increase (or decrease) \| Shareholding increase (or decrease) \| Pledged shareholding increase (or decrease) \| \| Chairman \| Chi Wei Investment Co., Ltd. \| - \| 1,880,000 \| - \| - \| \| Representative of corporate director, concurrently the CEO of the Company \| Chi Wei Investment Co., Ltd. Representative: Liao Chen-Yi \| (195,000) \| (300,000) \| - \| - \| \| Directors \| Zuo-Kuan Investment Co., Ltd. \| - \| - \| - \| - \| \| Representative of corporate director, concurrently the President and COO of the Company \| Zuo-Kuan Investment Co., Ltd. Representative: Chan Chin-Hui \| - \| - \| - \| - \| \| Directors \| AKANE (H.K.) ELECTRONICS LIMITED \| - \| - \| - \| - \| \| Representative of corporate director \| AKANE (H.K.) ELECTRONICS LIMITED Representative: Kuo Shu-Chuan \| - \| - \| - \| - \| \| Directors \| Jin Mao Investment Co., Ltd. \| - \| - \| - \| - \| \| Representative of corporate director \| Jin Mao Investment Co., Ltd. Representative: Fang Ming-Chung \| - \| - \| - \| - \| \| Directors \| Wu Chih-Yuan \| - \| - \| - \| - \| \| Directors \| Yang Deng-Huei \| - \| - \| - \| - \| \| Independent Director \| Tsai Yang-Chung \| - \| - \| - \| - \| \| Independent Director \| Chiu Tsung-Chih \| - \| - \| - \| - \| \| Independent Director \| Hsu Yu-Ming \| - \| - \| - \| - \| \| President \| Huang Hung-Chieh (Note 1) \| - \| - \| 4,000 \| - \| \| Executive deputy general manager \| Du Chuan-Fu \| - \| - \| - \| - \| \| Deputy General Manager, Sales Department \| Li Ssu-Chieh \| - \| - \| - \| - \| \| Deputy General Manager, Product Engineering Application Department \| Kuo Shu-Wei \| - \| - \| - \| - \| \| Deputy General Manager, Quality Assurance Department \| Liu Yi-Cheng \| - \| - \| - \| - \| \| Associate Vice President, Thin Film Business Department: \| Tseng Chin-Yuan \| - \| - \| - \| - \| \| Associate Vice President, Metal Plate R&D Department: \| Tsai Cheng-Lin \| - \| - \| - \| - \| \| Associate Vice President, Sales Department \| Chung Yu Fang \| - \| - \| - \| - \| \| Chief Accounting Officer and Corporate Governance Officer \| Yang Shan-Yu(Note 2) \| - \| - \| - \| - \| \| Major shareholder \| Liao Chen-Yi \| (195,000) \| (300,000) \| - \| - \| Note 1: Deputy General Manager of Administration and CFO Huang Hung-Chieh was promoted to General Manager and Chief Operating Officer on May 27, 2025. Note 2: Yang Shan-Yu, Chief Accounting Officer and Corporate Governance Officer, assumed the position on May 27, 2025; changes in shareholding are calculated from that date. (II) Information on counterparties who are related parties in share transfers or share pledges: None. --- VIII. Relationship information, if among the company's 10 largest shareholders any one is a related party of another March 28, 2026 \| Unit: Shares; % \| NAME \| SHAREHOLDING \| \| SHARES HELD BY SPOUSE AND MINOR CHILDREN \| \| TOTAL SHAREHOLDING BY NOMINEE ARRANGEMENTS \| \| SPECIFY THE NAME OF THE ENTITY OR PERSON AND THEIR RELATIONSHIP TO ANY OF THE OTHER TOP 10 SHAREHOLDERS WITH WHICH THE PERSON IS A RELATED PARTY OR HAS A RELATIONSHIP OF SPOUSE OR RELATIVE WITHIN THE 2ND DEGREE \| \| REMARKS \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| NO. OF SHARES \| SHAREHOLDING RATIO \| NO. OF SHARES \| SHAREHOLDING RATIO \| NO. OF SHARES \| SHAREHOLDING RATIO \| NAME \| RELATIONSHIP \| \| \| Yu-Gu Investment Co., Ltd. \| 7,567,000 \| 8.55 \| - \| - \| - \| - \| - \| - \| - \| \| Yu-Gu Investment Co., Ltd. Representative: Hsieh Huei-Chu \| 890,000 \| 1.01 \| 840,000 \| 0.95 \| - \| - \| - \| - \| - \| \| AKANE (H.K.) ELECTRONICS LIMITED \| 6,435,000 \| 7.27 \| - \| - \| - \| - \| - \| - \| - \| \| AKANE (H.K.) ELECTRONICS LIMITED Representative: Kuo Shu-Chuan \| - \| - \| - \| - \| - \| - \| - \| - \| - \| \| Bai-Chi Investment Co., Ltd. \| 4,075,000 \| 4.61 \| - \| - \| - \| - \| - \| - \| - \| \| Bai-Chi Investment Co., Ltd. Representative: Liao Chen-Yi \| - \| - \| - \| - \| - \| - \| - \| - \| - \| \| Chi Long Investment Co., Ltd. \| 4,046,000 \| 4.57 \| - \| - \| - \| - \| - \| - \| - \| \| Chi Long Investment Co., Ltd. Representative: Liao Chen-Yi \| - \| - \| - \| - \| - \| - \| - \| - \| - \| \| Jin Mao Investment Co., Ltd. \| 2,925,000 \| 3.31 \| - \| - \| - \| - \| - \| - \| - \| \| Jin Mao Investment Co., Ltd. Representative: Fang Ming-Chung \| - \| - \| - \| - \| - \| - \| - \| - \| - \| \| CONCORD INTERNATIONAL SECURITIES CO., LTD \| 2,843,769 \| 3.21 \| - \| - \| - \| - \| - \| - \| - \| \| CONCORD INTERNATIONAL SECURITIES CO., LTD Representative: Wang Wen-Tsu \| - \| - \| - \| - \| - \| - \| - \| - \| - \| \| Liao Chen-Yi \| 2,630,000 \| 2.97 \| 1,350,000 \| 1.53 \| 11,501,000 \| 13.00 \| - \| - \| - \| \| Chung-Yi Management Consultancy Co., Ltd. \| 2,491,000 \| 2.82 \| - \| - \| - \| - \| - \| - \| - \| \| Chung-Yi Management Consultancy Co., Ltd. Representative: Ni Chin-Kai \| - \| - \| - \| - \| - \| - \| - \| - \| - \| \| Wu Chih-Yuan \| 2,000,000 \| 2.26 \| 840,000 \| 0.95 \| - \| - \| - \| - \| - \| \| Chi Wei Investment Co., Ltd. \| 1,880,000 \| 2.12 \| - \| - \| - \| - \| - \| - \| - \| \| Chi Wei Investment Co., Ltd. Representative: Liao Chen-Yi \| - \| - \| - \| - \| - \| - \| - \| - \| - \| --- IX. The total number of shares and total equity stake held in any single enterprise by the company, its directors, managerial officers, and any companies controlled either directly or indirectly by the company December 31, 2025 \| Unit: Shares; % \| Investee enterprise \| Investment by the Company \| \| Investment by the Directors, Supervisors, Managerial Officers and Directly or Indirectly Controlled Entities of the Company \| \| Total investment \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| No. of shares \| Shareholding percentage \| No. of shares \| Shareholding percentage \| No. of shares \| Shareholding percentage \| \| Shenzhen Ever Ohms Electronic Co., Ltd. \| (Note) \| 100% \| - \| - \| (Note) \| 100% \| Note: As the company is a limited company, there is no number of shares. 48 --- # Three. Capital Raising Activities # I. Capital and shares (I) Sources of Capital 1. Process of capital formation March 28, 2026 Unit: shares; NTS \| Month/year \| Issued price (NT$) \| Authorized capital \| \| Paid-in capital \| \| Remarks \| \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| \| No. of shares \| Amount \| No. of shares \| Amount \| Sources of capital \| Capital paid in by assets other than cash \| Others \| \| 2003.11 \| 10 \| 22,700,000 \| 227,000,000 \| 22,700,000 \| 227,000,000 \| 6,000,000 shares for cash capital increase \| - \| Note 1 \| \| 2018.01 \| 10 \| 22,700,000 \| 227,000,000 \| 22,350,000 \| 223,500,000 \| 350,000 shares for capital decrease by demerger \| - \| Note 2 \| \| 2018.04 \| 10 \| 80,000,000 \| 800,000,000 \| 64,800,000 \| 648,000,000 \| 42,450,000 shares for cash capital increase \| - \| Note 3 \| \| 2018.08 \| 10 \| 80,000,000 \| 800,000,000 \| 68,949,082 \| 689,490,820 \| 4,149,082 new shares issued for merger \| - \| Note 4 \| \| 2019.06 \| 10 \| 100,000,000 \| 1,000,000,000 \| 69,827,082 \| 698,270,820 \| 878,000 shares for employees' remuneration transferred to capital increase \| - \| Note 5 \| \| 2019.12 \| 10 \| 100,000,000 \| 1,000,000,000 \| 79,827,082 \| 798,270,820 \| 10,000,000 shares for cash capital increase \| - \| Note 6 \| \| 2022.09 \| 10 \| 100,000,000 \| 1,000,000,000 \| 88,471,082 \| 884,710,820 \| 8,644,000 shares for cash capital increase \| - \| Note 7 \| \| 2024.07 \| 10 \| 150,000,000 \| 1,500,000,000 \| 88,471,082 \| 884,710,820 \| Authorized capital stock increased \| - \| Note 8 \| Note 1: Approved by Letter Jin-Shou-Zhong-Zhi No. 09232965170 dated November 17, 2003 Note 2: Approved by Letter Kao-Shi-Fu Jing-Shang-Gong Zhi No.10750234000 dated January 17, 2018 Note 3: Approved by Letter Jia-Shou-Kao-Zhi No. 10740010810 dated April 27, 2018 Note 4: Approved by Letter Jia-Shou-Kao-Zhi No. 10740011570 dated August 1, 2018 Note 5: Approved by Letter Jia-Shou-Kao-Zhi No. 1084100082 dated June 14, 2019 Note 6: Approved by Letter Jia-Shou-Kao-Zhi No. 1084100193 dated December 16, 2019 Note 7: Approved by Letter Jia-Shou-Kao-Zhi No. 1114100139 dated September 8, 2022 Note 8: Approved by Letter Jia-Shou-Kao-Zhi No. 1135400205 dated July 18, 2024 --- 2. Type of share February 28, 2026 \| Unit: Shares \| Type of shares \| Approved Share Capital \| \| \| Remarks \| \| --- \| --- \| --- \| --- \| --- \| \| \| Outstanding shares \| Unissued shares \| Total \| \| \| Ordinary share \| 88,471,082 \| 61,528,918 \| 150,000,000 \| Listed shares of the Company \| 3. If approval has been granted to offer and issue securities by shelf registration, additionally disclose the approved amount and information regarding securities to be issued or already issued: not applicable (II) List of major shareholders (shareholders holding 5% or more; if fewer than ten, disclose the names, shareholdings, and percentages of the top ten shareholders by shareholding) March 28, 2026 \| Shares Name of major shareholder \| No. of shares held \| Shareholding percentage (%) \| \| --- \| --- \| --- \| \| Yu-Gu Investment Co., Ltd. \| 7,567,000 \| 8.55 \| \| AKANE (H.K.) ELECTRONICS LIMITED \| 6,435,000 \| 7.27 \| \| Bai-Chi Investment Co., Ltd. \| 4,075,000 \| 4.61 \| \| Chi Long Investment Co., Ltd. \| 4,046,000 \| 4.57 \| \| Jin Mao Investment Co., Ltd. \| 2,925,000 \| 3.31 \| \| CONCORD INTERNATIONAL SECURITIES CO., LTD \| 2,843,769 \| 3.21 \| \| Liao Chen-Yi \| 2,630,000 \| 2.97 \| \| Chung-Yi Management Consultancy Co., Ltd. \| 2,491,000 \| 2.82 \| \| Wu Chih-Yuan \| 2,000,000 \| 2.26 \| \| Chi Wei Investment Co., Ltd. \| 1,880,000 \| 2.12 \| (III) The Company's dividend policy and implementation thereof 1. Dividend policy adopted in the company's articles of incorporation If there is any surplus in the Company's earnings as concluded by the annual accounting book close, after paying tax and making up for accumulated losses, 10% shall be set aside as legal reserve, except when the legal reserve has reached the Company's paid-in capital. If there is any remaining balance, with the undistributed earnings in previous years it shall be set aside as the cumulative distributable earnings. The Company's future dividend policy is to distribute the dividends based on the principle of stability and balance; other than considering the accumulation of the Company's capital, and the impacts on the Company's operation, the share dividends may be distributed, based on the Company's business planning, to reserve the funds required; the remaining may be distributed in cash dividends, but the cash dividends may not be less than 10% of total dividends. 2. Dividend distributions proposed at the most recent shareholders' meeting The company's 2025 earnings distribution proposal was approved by the Board of Directors on February 26, 2026. A cash dividend of NT$0.2 per share and a capital surplus distribution of NT$0.2 per share are to be distributed, totaling NT$0.4 per share. The dividend distribution has been resolved by the Board of Directors and is pending approval at the Annual General Shareholders' Meeting on May 26, 2026. 3. If significant changes to the expected dividend policy are anticipated, an explanation shall be provided: No such circumstances occurred. (IV) Impact of the proposed bonus shares (stock dividend) at this shareholders' meeting on the company's operating performance and earnings per share: Not applicable. The company did not issue any bonus shares in 2025; therefore there is no impact on operating performance or earnings per share. (V) Remuneration of employees, directors, and supervisors 1. The percentages or ranges with respect to employee, director, and supervisor remuneration, as set forth in the company's articles of incorporation The Company shall, based on the profit of a year, distribute the remuneration to employees at a rate of not less than 2% and no more than 15%, and the remuneration to directors and --- supervisors at a rate of not more than 10% of such. However, the company’s accumulated losses shall have been covered. Of the employees’ compensation amount referred to in the preceding paragraph, more than 20% shall be set aside for the distribution of compensation to grassroots employees. The remunerations to the employees may be distributed in cash or shares, and the employees of subsidiaries meeting certain specific requirements are entitled to receive the employee remunerations. The remunerations to the directors and supervisors may only be made in cash. The said profit of a year in paragraph 1 refers to the profit before tax of a year before deducting the remunerations distributed to the employees and directors and supervisors. The distribution of remuneration to employees and directors shall be adopted by a majority of directors at a meeting attended by two-thirds or more of the total number of directors, and reported to the regular shareholders’ meeting. 2. The basis for estimating the amount of employee, director, and supervisor remuneration, for calculating the number of shares to be distributed as employee remuneration, and the accounting treatment of the discrepancy, if any, between the actual distributed amount and the estimated figure, for the current period: Where any discrepancy between the actual distributed amount of employee, director, and supervisor remuneration and the estimated figures estimated pursuant to the percentages or ranges set forth in the Company's articles of incorporation, it is treated as the change in accounting estimate, and the adjustment is accounted in the year of the Board’s resolution. 3. Remuneration distribution approved by the Board: (1) The amount of any employee remuneration distributed in cash or stocks and remuneration for directors and supervisors. If there is any discrepancy between that amount and the estimated figure for the fiscal year these expenses are recognized, the discrepancy, its cause, and the status of treatment shall be disclosed. The company's 2025 employee profit sharing and director/supervisor remuneration distribution proposal was approved by the Board of Directors on February 26, 2026, and will be submitted for report at the shareholders' meeting on May 26, 2026. It was resolved to distribute employee profit sharing of NT$4,000 thousand and director remuneration of NT$2,000 thousand, both to be paid entirely in cash. The resolved amounts are consistent with the estimated expense amounts recognized during the year, with no variance. (2) The amount of any employee remuneration distributed in stocks, and the size of that amount as a percentage of the sum of the after-tax net income: not applicable as the employee remuneration is distributed in cash. 4. The actual distribution of employee, director, and supervisor compensation for the previous fiscal year (with an indication of the number of shares, monetary amount, and stock price, of the shares distributed), and, if there is any discrepancy between the actual distribution and the recognized employee, director, or supervisor compensation, additionally the discrepancy, cause, and how it is treated: The company's 2024 earnings distribution was approved at the shareholders' meeting on May 27, 2025. Director remuneration was NT$2,000 thousand and employee profit sharing was NT$4,000 thousand. There was no difference between the actual amount distributed in 2025 and the amount recognized in 2024.. (VI) Share buyback status: None. ## II. Issuance of corporate bonds: none. ## III. Issuance of preferred shares: none. ## IV. Issuance of global depository receipts: none. ## V. Issuance of employee share subscription warrants: none. ## VI. Issuance of new restricted employee shares: none. ## VII. Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies: none. ## VIII. Implementation of the company's capital allocation: none. 51 --- Four. Overview of Business Operations # I. Description of the business: # 1. Scope of business: # (1) Major lines of business The Company is a professional manufacturer of chip resistors. Currently, its main business is the R&D, manufacturing and sales of various thick-film resistors, thin-film resistors and metal plate resistors. # (2) Weight of business Unit: NTD Thousands; % \| Main product items \| 2024 \| \| 2025 \| \| \| --- \| --- \| --- \| --- \| --- \| \| \| Amount \| Weight \| Amount \| Weight \| \| Thick-film resistors \| 513,376 \| 40.49 \| 558,572 \| 39.03 \| \| Thin-film resistors \| 346,565 \| 27.34 \| 371,540 \| 25.97 \| \| Mental-plate resistors \| 401,545 \| 31.67 \| 494,307 \| 34.55 \| \| Others \| 6,360 \| 0.50 \| 6,464 \| 0.45 \| \| Total \| 1,267,846 \| 100.00 \| 1,430,883 \| 100.00 \| # (3) Current products and services ① Thick-film resistors: High-power thick-film resistors, anti-sulfuration thick-film resistors, automotive thick-film resistors, surge-resistant thick-film resistors, high-voltage and ultra-high-voltage thick-film resistors, wide-electrode thick-film resistors, array thick-film resistors, and related business. ② Thin-film resistors: High-power thin-film resistors, ultra-precision thin-film resistors, low-resistance metal-film resistors, anti-sulfuration low-resistance metal-film resistors, surge-resistant low-resistance metal-film resistors, and related manufacturing business. ③ Metal plate resistors: Ceramic substrate micro-ohm resistors, metal plate micro-ohm resistors, current sensing metal plate micro-ohm resistors. # (4) New products (services) planned for development The new products that the Company plans to develop in the future are aimed at 5G, automation control, automotive and smart appliance applications. In addition to improving product precision and breadth, the Company is also currently undergoing a related research and development proposal process by having the market development salespersons to furnish the market application information to make the products researched and developed get close to the market demand, and provide end customers with diverse solutions to develop the products they need. Research and development, innovation with the improvement of existing technologies and product quality, to develop products meeting the needs of customers and the market, and more industrial application aspects are further expanded. # 2. Overview of the industry # (1) Current status and development of the industry The industry to which the Company belongs to is the passive component industry, with capacitors, inductors and resistors as the three major basic components, and the three work with each other to achieve the function of electronic circuit control. In terms of capacitors, capacitors store and release electric energy in the form of static electricity. The principle of its structure is insulating the inductive material of the two electrodes with medium, in which the electric energy is stored; the major function is to store the electric charge, or for the functions of bypass, filtering, tuning, and oscillation. Generally, capacitors may be divided by the medium into three categories: fixed capacitors, variable capacitors and chip capacitors, and fixed capacitors can be divided into aluminum electrolytic capacitors, ceramic capacitors and tantalum capacitors. Among them, multilayer ceramic capacitors (MLCC) have been widely adopted. In terms of inductors, the main function of inductors is to prevent electromagnetic interference (EMI) and filter noise in the current. They can be divided into three categories: magnetic cores, coils, and chip inductors. Among them, chip inductors have a larger weight and can be further distinguished as two types: wire-wound chip inductors and multilayer chip inductors. For resistors, resistors are the most basic and necessary components in electronic products, and usually used to adjust voltage and current in electronic circuits. Resistors are generally divided into fixed non-chip resistors, fixed --- chip resistors, variable resistors, and non-linear resistors. The Company is mainly engaged in the R&D, manufacturing and sales of chip resistors in passive components. Here is an overview of the passive component industry as follows: According to the research report of Topology Research Institute (May 2020), the passive components mainly include capacitors, inductors, and resistors; the functions of capacitors include coupling, decoupling, filtering, bypass, and energy storage, divided as ceramic capacitors, multilayer ceramic capacitors (MLCC), tantalum capacitors, aluminum capacitors and thin-film capacitors. The function of inductor is to suppress noise, reduce interference, stabilize current and store energy. There are wire-wound inductors, molded inductors, thin-film inductors, multilayer inductors and miniature one-piece inductors. The functions of resistors are voltage and current division, which suppress the ratio of voltage and current; resistors can be divided into wirewound resistors, carbon film resistors, metal film resistors, metal oxide film resistors, and chip resistors. Categories of passive components \| Category \| \| Function \| Item \| \| --- \| --- \| --- \| --- \| \| Capacitors (C) \| \| Capacitors coupling, decoupling, filtering, bypass, energy storage \| Ceramic capacitors, film capacitors, multilayer ceramic capacitors, tantalum capacitors, aluminum electrolytic capacitors, etc. \| \| Inductors (L) \| \| Suppressing noise, reducing interference, stabilizing current, and storing energy \| Wire-wound inductors, molded inductors, thin-film inductors, multilayer inductors, miniature integrated inductors, etc. \| \| Resistors (R) \| \| Voltage division, current division, and voltage and current regulation \| Metal film resistors, metal oxide film resistors, wire wound resistors, carbon film resistors, and chip resistors, among other things. \| Source: TDK (capacitors/resistors); compiled by Topology Research Institute, May 2020 According to a report by the Taiwan Institute of Economic Research, the outlook for Taiwan's passive electronic components manufacturing industry in 2026 is improving, as the completion of reciprocal tariff trade negotiations between Taiwan and the United States gradually eliminates uncertainty over tariffs on exports to the U.S. As AI progressively moves toward practical application and becomes increasingly integrated into daily life, demand for computing power will continue to grow. In addition, nations are competing to advance sovereign AI initiatives to secure their strategic national positions, prompting major cloud service providers to continuously expand capital expenditures and accelerate AI infrastructure buildout. This is driving a significant surge in demand for AI servers, high-speed switches, and other AI hardware, and as Taiwan manufacturers increasingly succeed in penetrating the primary AI supply chain, shipments of tantalum capacitors, high-end MLCCs, and high-end inductors are expected to gain momentum — likely becoming the primary growth driver for Taiwan manufacturers' shipment growth in 2026. By contrast, mass-market passive component applications such as smartphones and PCs are facing headwinds from memory supply shortages and sharp price surges, causing end-brand manufacturers to successively revise down their 2026 shipment targets, which may significantly dampen demand for commodity passive components. In addition, precious metal prices, including silver and copper, remain elevated with sharp volatility, placing considerable pressure on upstream material cost control. In summary, 2026 continues to benefit from robust growth momentum driven by AI application demand. Autonomous vehicles and ADAS applications are also expected to sustain further growth in automotive electronics demand. Taiwan manufacturers, having successfully expanded into both AI and automotive markets simultaneously, retain solid shipment growth --- momentum. Furthermore, price increases extending from tantalum capacitors to inductors, resistors, and MLCCs are expected to drive further growth in Taiwan's passive electronic components manufacturing industry output value. According to surveys and forecasts by the Industrial Technology Research Institute (ITRI) and the ITIS program team, Taiwan's passive components output value in 2026 is projected to reach NT$285.46 billion, representing year-on-year growth of $9.1\%$ — a notably stronger growth trajectory with continued strong industry performance. ![img-0.jpeg](img-0.jpeg) Note 1: Taiwan's passive electronic components output value includes production by Taiwanese companies in Taiwan, China, and other regions. Note 2: Passive electronic components include resistors, capacitors, inductors, and RF passive electronic components. Source: ITRI Industry Economics & Knowledge Center, ITIS Program Team, Taiwan Institute of Economic Research Industry & Economic Database, compiled and estimated (2) Links between the upstream, midstream, and downstream segments of the industry supply chain \| Upstream - suppliers of raw materials \| Midstream - manufacturers of chip resistors \| Downstream - terminal application manufacturers \| \| --- \| --- \| --- \| \| Substrate, pastes, and packaging materials \| Ever Ohms, Yageo, Walsin Technology, Tai I Technology, Viking Tech. \| Power supplies, network/communication equipment, automotive electronics, consumer electronics, home appliances \| The Company is a professional resistor manufacturer. The upstream raw materials of resistors are mainly substrates, resistor pastes and packaging materials. The midstream is mainly resistor manufacturing industry. The upstream raw materials such as pastes and substrates requires more time to test due to the quality consideration. The finished chip resistor products are developed, designed, produced and manufactured after obtaining other related materials, before being sold to downstream terminal application manufacturers such as power supply, network/communication equipment, automotive electronics and consumer electronics. # (3) Development trends and competition for the company's products # ① Development Trends A. End products are trending toward thinner, lighter, and more precise designs, increasing the prominence of thin-film processes. Comparison of characteristics of thin-film and thick-film chip resistors \| \| Thin-film chip resistors \| Thick-film chip resistors \| \| --- \| --- \| --- \| \| Process method \| Sputtering, photolithography etching \| Making of resistive film by printing and sintering \| \| Resistor layer \| No precious metals \| Precious metals such as silver, palladium, ruthenium, and glass containing trace amounts of lead \| \| Temperature Coefficient of Resistance (TCR, the smaller the coefficient, the less \| 0~50 ppm/C \| 50~100 ppm/C or more \| --- \| it is affected by the external temperature change) \| \| \| \| --- \| --- \| --- \| \| Precision of resistor \| ±1%~±0.01% \| ±1% or more \| \| Noise interference (the higher the dB value, the resistance is less vulnerable to noise interference) \| 110 dB or more \| 85 dB or more \| \| Anti-surge capability \| Low surge resistance meaning easy to burn out \| High surge resistance meaning not easy to burn out \| \| Applicable scenarios \| High precision requirements, harsh working environment, and significant temperature movement \| General-purpose products are commonly used in occasions with small temperature changes \| Source: provides by the Company and complied by Taishin Securities Due to the difference in the manufacturing process of thin-film and thick-film resistors, the product specifications, stability, accuracy and materials used are different, too. In terms of process technology, the thick-film process adopts screen printing technology, to print the gel on the alumina substrate by scraper extrusion, and then dried, sintered and other processes, with the laser cutting to adjust the resistance. Its product line width reaches 100um ( microns) or more, and its thickness is about 5~10um. It is technically difficult to shrink the size and improve the stability of the product. However, the thin-film process uses alumina as the substrate, and adopts the technology sputtering R layer laser cutting to draw electronic, to control line width above 10um, and the product thickness can be controlled within the range of 0.01~1um. Comparing to the thick-film process, there are more possibilities for the miniaturization of product and designs with better precision, in line with the development trend of product towards high precision and compact. For the materials used in products, the materials of thick-film resistors are precious metals such as silver, palladium, ruthenium, and glass with trace amounts of lead. While still meeting the environmental protection requirements, no precious metal is required by thin-film resistors, which is one of the required elements for future products. It is seen from the table above, thin-film resistors have many manufacturing process advantages relative to thick-film resistors, and the surge resistance is the only weakness of thin film resistors comparing to thick-film resistors. It is because the lines inside thin-film resistors are narrow, with higher ratio of burned resistors in case of abnormal surge comparing to thick-film resistors. On the other hand, abnormal surges are inherently dangerous, so the thin-film resistors are actually much safer. Therefore, the thin-film process has excellent product features and is one of the key technologies to enhance product competitiveness. Comparing to the thick-film process, there are more possibilities for the miniaturization of product and designs with better precision, in line with the development trend of terminal product towards higher precision and compact. B. With ultra-low resistance, high power, anti-surge, and high stability for long-term use, market demand for metal plate resistors is high Metal plate resistors are made with raw alloy plate materials, through stamping, resistance trimming and other working methods. Since the resistor body is made of alloy plate material — which, as a current-carrying medium, offers the advantages of low impedance and high power — further advances in manufacturing processes have enabled high precision, low temperature coefficient of resistance (TCR), and a wide resistance range. The power tolerance of these products is superior to that of thick-film and thin-film products. Due to the low resistance value and high power of metal plate products, they are widely adopted for current detection; these resistors can also withstand instantaneous surge shocks, and feed back the abnormally changing current in the circuit stably. Products are widely adopted in power supply, power transformation, power supply management, battery protection, charging poles, automotive electronic control systems, wearable devices and servers, and other related products. In summary, metal plate resistors have the characteristics of ultra-low resistance, low temperature drift, anti-surge and high stability for long-term use. The future product market is wide. With a complete product series and rich advantages, these resistors will have more development and applications. C. AI drives product specification improvement According to a report by the Taiwan Institute of Economic Research, generative AI is --- accelerating global technological transformation and driving the AI industry into a new stage of commercialization. As cloud computing demand surges, the AI server market is growing rapidly and has become a key investment focus for cloud service providers. Due to their high unit prices, AI servers have become a critical growth driver for overall server output value. Their three core characteristics — high computing power, high power consumption, and high data transmission — further strengthen reliance on high-end passive components. In particular, within AI chip modules and motherboard architectures, specifications for capacitors and inductors have risen significantly to meet the challenges of increasingly high power density and packaging integration. The rapid expansion of AI applications is also driving upgrades in end devices, with AI PCs and AI smartphones accelerating their market introduction. As market penetration rates rise, demand for high-performance passive components increases in tandem, becoming a new growth driver for the upgrade and medium-to-long-term growth of Taiwan's passive components industry. # ②Competitive Landscape The current major producers of resistors around the world are summarized as the table below: \| Japanese manufacturers \| Murata, TDK, TAIYO YUDEN, ROHM, Panasonic, KOA, Kyocera \| \| --- \| --- \| \| The U.S. manufacturers \| Kemet, Vishay \| \| Korean manufacturers \| SEMCO \| \| Taiwanese manufacturers \| Yageo, Kaimei, Walsin Technology, Tai I Technology, Royal Electronic \| \| Chinese manufacturers \| Fenghua Advanced Technology, Three-circle \| Source: compiled by the Company Currently, the main suppliers of resistors in the passive components market come from Japan, Taiwan, the US, China and South Korea. The Japanese manufactures include Murata, TDK, TAIYO YUDEN, ROHM, Panasonic, KOA, and Kyocera; the Taiwanese manufacturers include Yageo, Kaimei, Walsin Technology, Tai I Technology, and Royal Electronic; the U.S. manufacturers include Kemet and Vishay; the Chinese manufacturers include Fenghua Advanced Technology, Three-circle; and the representative Korean manufacture is SEMCO. Compared with other chip resistor manufacturers, the Company still has a gap in production capacity. However, in recent years, the Company has actively developed high-end application markets and new products, and entered into niche markets, such as new product applications including thick-film chip resistors, thin-film resistors and metal plate resistors for automotive and industrial electronics, to increase customers' dependence on the Company's products. # 3. Overview of the company's technologies and its research and development work # (1) The technical level, research and development of the business operated In recent years, the functions of future electronic products such as consumer electronics, information and communication, industrial control, and automotive will become more and more diversified and humanized, while the appearance requirement becoming compacter with more focuses on power saving or green technologies. The characteristics of traditional or standard passive components have gradually failed to meet the needs. The market demand for passive components being compact, with special characteristic requirements, and high-precision resistors will grow year by year. The Company is a professional manufacturer of passive components, with production technologies of thick-film products, thin-film products, and metal plate products. Through years of technical development by the R&D team of each product, the quality and special features of various products have been improved: ①Thick-film products: Based on printing technology, thick-film products featured with anti-vulcanization and anti-surge are developed via through the introduction of new materials, new designs and new technologies, to provide solutions for special needs in the market. $②$ Thin-film products: Thin-film products are different from screen printing technology for thick-films. The sputtering process is used to make the resistive layer, and the resistive pattern is etched with --- the laser process. In the thin-film production process, key production parameters are strictly controlled to improve product precision and yields, to provide customers with high-precision product requirements. # ③Metal plate products: Metal plate products are low-resistance products with alloy substrates. These products can provide ultra-low resistance and high power requirements that are difficult to manufacture with thick and thin films. The Company has accumulated many years of experience in the production and sales of chip resistors, with the core capabilities to develop thick-film, thin-film and metal plate processes. The Company is one of the few domestic manufacturers that has all of the thick-film, thin-film and metal plate process technologies. With the complementary characteristics of the three products, the depth and breadth of the Company's products are enriched. For the difficult issues encountered by customers in product design, with the continuous improvement of the three products, the professional and effective products are provided to customers to solve the issues encountered by the customer's product circuit layouts. Currently, the Company has developed various customized thick-film, thin-film and metal plate products with different tolerances and resistances, providing customers with total solution product and services. \| \| Thick-film resistors \| Thin-film resistors \| Mental-plate resistors \| \| --- \| --- \| --- \| --- \| \| Precision of resistor \| 1%, 5% \| 0.5%, 0.1%, 0.05%, 0.01% \| 1%, 5% \| \| Temperature change coefficient (TCR) \| 100ppm, 400ppm \| 50ppm, 25ppm, 10ppm, 5ppm \| 75ppm, 50ppm \| \| Power \| 3W \| 1W \| 3W \| [Note]: The aforesaid information is the data of model 2512, and the specifications of different products are slightly different. For details, please refer to the specifications on the Company's official website. (2) R&D personnel and their working/academic background \| Education \| 2024 \| \| 2025 \| \| 2026 as of February 28 \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| No. of people \| Ratio (%) \| No. of people \| Ratio (%) \| No. of people \| Ratio (%) \| \| Doctoral degree \| 0 \| 0.00% \| 0 \| 0.00% \| 0 \| 0.00% \| \| Master degree \| 6 \| 25.00% \| 12 \| 41.38% \| 12 \| 41.38% \| \| University (college) \| 15 \| 62.50% \| 14 \| 48.28% \| 14 \| 48.28% \| \| Senior high school (vocational school included) \| 3 \| 12.50% \| 3 \| 10.34% \| 3 \| 10.34% \| \| Total \| 24 \| 100.00% \| 29 \| 100.00% \| 29 \| 100.00% \| (3) Research and development expenditures invested in the most recent 5 years Unit: NTD Thousands; % \| Year \| 2021 \| 2022 \| 2023 \| 2024 \| 2025 \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| R&D expense \| 38,865 \| 40,645 \| 33,468 \| 30,433 \| 36,814 \| \| Net operating revenue \| 1,274,325 \| 1,100,601 \| 942,799 \| 1,267,846 \| 1,430,883 \| \| Percentage to the net operating revenue \| 3.05 \| 3.69 \| 3.55 \| 2.4 \| 2.57 \| (4) Technologies or products successfully developed in the most recent 5 years The passive components are produced with standard specifications. To strengthen competitiveness, cultivate talents and improve technologies, the Company continuously improves the quality of research and development in various products, and has obtained patent certificates in Taiwan and China. In the most recent five years, numerous products have been successfully developed and obtained the patent rights, as listed below: ①Products successfully developed in the most recent 5 years: \| Year\Item \| Technologies or products successfully developed \| \| --- \| --- \| \| 2021 \| 1. Thick-film and wide electrode products 0612/1020/1218/1225 with the power increased overall. 2. The development of thick-film 1210/2010 low-resistance segment 0R1~0R01 product was completed. 3. The development of the 2012 antenna was completed. 4. The extension of TGL metal film anti-pulse type to type 0805 was complete. 5. The research and manufacturing of TUL 2512 metal film ultra-pulse-resistant new product series was \| --- \| Year\Item \| Technologies or products successfully developed \| \| --- \| --- \| \| \| completed.6. The development of TP film high-precision (± 0.01%) and low temperature coefficient (± 5 ppm/°C) resistors and upward extension of resistance value.7. The resistance value of TH film high-power resistors extended toward high resistance.8. The development of MAF 0612.3637 Four-electrode resistors.9. The development of MA 0612.3637 wide electrode resistors. \| \| 2022 \| 1. Thick film lead-free process, successively extended into high power, anti-vulcanization, anti-surge... And other product lines.2. Thick film 0805 product resistance extends down to 10mΩ ~ 990mΩ.3. Film exclusion TRA series has been developed.4. Completed the development of thin sheet metal products to meet customers' special applications \| \| 2023 \| 1. The thick film lead-free process has been extended to introduce ultra-high power, automotive-grade, and high-voltage product lines, and expanded to include wide electrode and size exclusion products, in order to move towards lead-free for all products.2. Improvement of the thick film low-resistance process to improve the yield rate and optimize the adaptability of customers.3. TUL metal film ultra-pulse resistant product series extended to 1206 and was completed.4. Completion of development of TUH ultra-high power thin film chip resistor 1206 and introduced it into mass production.5. Introduction of mass production of TRM leadless wafer resistor 0204 and 0207 in 2023.6. Increase the operating power of 3637, 0612, 1206 and other sheet metal products to meet the needs of the power market. \| \| 2024 \| 1. Introduction of mass production of MA3637-7W high power metal PCB products after trial completion.2. Introduction of mass production of MAL1206-1W-Low inductance metal plate products after trial completion.3. Trial production of MA2512-3W ultra-thin metal board resistance.4. Prototype product testing of MA0508 long electrode metal Plate products.5. Trial production of MAF 3637 and MAF 0612 4-polarity metal board products.6. Trial production of MU2512-3W-0.2mΩ ultra-low resistance value metal products with MU2512-3W-0.2mΩ.7. Development of MAH2512-5W high power metal board resistance products.8. Introduction of CHH/QHH series 2512/1206 ultra-high power and ultra-high voltage products.9. TS Range - Completion of trial production of highly stabilized thin-film resistors, with orders received for production. High temperature resistance, up to 175°C High reliability verification, on par with AEC-Q200 automotive test specifications.10. Introduction of mass production of TJ Range - Thermal Jumper Thermal dissipation components for new applications in small product size, low capacitance, high insulation, and high thermal conductivity Industries related to the AI topics. \| \| 2025 \| 1. MAH2512-5W high-power metal plate products have entered the pilot production testing stage.2. MA2512-3W ultra-thin metal plate resistors have been introduced into mass production.3. MA0508-1W long-electrode metal plate products have entered the pilot production testing stage.4. MAF0612-1W four-electrode metal plate products have completed pilot production and entered mass production.5. MU2512-3W-0.2mΩ ultra-low resistance metal plate products have been introduced into mass production.6. QS high-stability thick-film chip resistor series — 0402/0603/0805 prototypes successfully developed, improving continuous operational stability in harsh environments.7. CUH_R thick-film high-current jumper series — 0402/0603/0805/1206/1210/2010/2512 introduced into mass production.8. CHH/QHH surge-resistant high-power thick-film chip resistors — 0805/2010 prototype development.9. Thick-film chip resistor miniaturization development — 0201 introduced into mass production.10. Patent certificate obtained for thick-film resistor components: method of manufacturing low-resistance products using base metals.11. Patent certificate obtained for chip resistor components: three-electrode structure for high-power product applications.12. TQV1206 thin-film high-voltage chip resistors introduced into mass production.13. TR/TRL 01005 thin-film chip resistors have entered the pilot production stage.14. TS0201 high-stability thin-film chip resistors — product line extension to smaller form factors.15. Thin-film filters and thin-film attenuators — engineering paid sample technical integration and fabrication. \| ② Patents obtained in the most recent five fiscal years: --- \| Name of patent \| Country \| Starting year of the patent right \| \| --- \| --- \| --- \| \| Manufacturing process and structure of column resistors \| Republic of China \| 2021 \| \| Wafer resistance and manufacturing method thereof \| Republic of China \| 2022 \| \| Production method of alloy resistance component \| Republic of China \| 2023 \| \| Chip resistance \| China \| 2023 \| \| Production method of thick film resistance components \| Republic of China \| 2024 \| \| Chip resistance \| Republic of China, China \| 2024 \| \| Wafer resistance and manufacturing method thereof \| Republic of China \| 2025 \| \| Mental-plate micro resistors \| Republic of China \| 2025 \| 4. Long- and short-term business development plans (1) Short-term business development plans ① Marketing Establish good communication channels with customers, and hold exchange meetings with direct sales customers with potentials to add direct sales customers who need niche products, while providing the Company's completely new product information instantly, to improve customer satisfaction with the Company's products via sufficient and professional technical consultations, and a maintain good partnership between the two parties. ② Production The order-based flexible production dominates, and supplemented by some planned production, to meet customer needs for various products in a timely manner, while implementing the ISO quality system, to continuously improve and refine the quality, enhance new product innovation and research, seeking to increase product performance and stability. ③ Product Development Actively expand product application fields, and work closely with suppliers to develop a diversified product line mix, with close communication with customers to develop products based on their needs, seeking to catch market opportunities. ④ Operational Scale The Company continuously builds production bases in Taiwan, investing capitals for ongoing expansion of production lines, and gradually increasing production capacity, to improve operational synergy through economies of scale. In addition, the Company continues to optimize the computer systems, and through automated management, for improving management performance. (2) Long-term business development plans ① Marketing Sufficiently understand customers' needs, develop products closer to these needs, and then increase the added value of products. Through the Company's direct introduction of customer, the Company's brand awareness is improved. In addition to maintaining close and good partnerships with existing customers, the Company also works with up- and downstream industry for strategic alliances, to enter the global supply chain of major international manufacturers, expand domestic and overseas markets, and enhance the competitiveness of self-owned and cooperative business entities. ② Production Seeking the internationalized division of labor, the production and service bases with appropriate scale are established to increase production capacity and reduce production costs, while serving customers locally. Meanwhile, the high-quality and long-term vendors are sought --- actively, to help them to improve the production technology. Through modular production, the production capacity is increased the and costs are reduced. ③Product Development The Company deems that the provision of the best solutions for customers' R&D and design is its responsibility, while meeting the needs of future 5G development and pursuing automated production. In addition to deeply cultivating the current main products and driving the development of this series of products, the product diversified fields are also being developed. ④ Operational Scale The Thick-film, Thin-film and Metal Plate Business Department of the Company continues to focus on the development of products with high-precision and low-resistance, and to respond to the global labor shortage issue, automated production is added to process improvement. Meanwhile, to optimize the customer structure, the first priority is to develop direct sales customers, as well as international and key customers in Europe and the U.S., to adjust the operating structure, expand the production capacity of high-margin products, for enhancing profits and striving for a customer mix with high unit price orders. With the three pillars of the Thick-Film, Thin-Film and Metal Plate Business Departments, the Company will successfully enter the markets of base station, antenna, server, communication, wireless module, smart phone and digital consumer products in the next five years, creating sources of higher profits. The construction of overseas plants is also a key matter planned by Ever Ohms Technology. It continues to evaluate the possibility of customers clustering in the new southbound direction. It is expected to support each other via mergers and acquisitions or strategic alliances, to develop new production bases. Except for doubling the scale of Ever Ohms Technology's operations, a large amount of inventory level will be built to meet the demands of continuous customer source development. II. Analysis of the market as well as the production and marketing situation 1. Market analysis (1) Geographic areas where the main products are provided Unit: NT$ thousands \| Year \| \| 2024 \| \| 2025 \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| Location \| \| Amount \| Ratio % \| Amount \| Ratio % \| \| Domestic sales \| \| 257,132 \| 20.28 \| 326,627 \| 22.83 \| \| Export \| China \| 936,605 \| 73.87 \| 1,033,681 \| 72.24 \| \| \| Others \| 74,109 \| 5.85 \| 70,575 \| 4.93 \| \| Total \| \| 1,267,846 \| 100.00 \| 1,430,883 \| 100.00 \| (2) Competition edges ①Experienced and professional management team The Company's management team has served in the industry for many years, and are very seasoned in various aspects such as changes in the industrial environment, product development trends, production and manufacturing, and marketing operations. They can quickly grasp the pulse of market trends and provide customers with professional and comprehensive services instantly, and contribute to the product promotion and new product development. ②Specialized R&D team possessing core technologies to provide optimal product solutions for customers The Company has fully mastered core technologies such as thin-film and metal plate characteristics, manufacturing process improvement, and substrate material application. With the professional R&D team having backgrounds in materials, chemical engineering, mechanical engineering, electronics, and electric engineering, as well as R&D experience accumulated for years, the team is familiar with features of related products and technologies. In addition to developing key materials and process technology in house for developing applications for different needs, the Company also cooperates with customers, to participates --- customer product development in the initial stage, and evaluates the functions of resistor products that need to be matched based the characteristics of customer products, to provide best solutions for customers' product development. ③ Strengthening production process management and improving product yield rates The product yields directly affect the Company's production and profits, and product yields and product quality depend on whether the production process management operates effectively. The Company has been deeply involved in the field of passive component chip resistors for many years, has accumulated manufacturing experience for many years with technological capabilities. It is committed to improving product quality, and deeply trusted by customers. Moreover, the Company also strengthens the management to control production costs, and continues to refine and improve the technologies and advanced manufacturing process, for increasing the competitiveness of the Company's product prices. ④ Expanding the customer base for niche products The Company will continue to develop resistor products competitive with special application, such as anti-vulcanize, anti-surge, high voltage and high power. Other than the thick-film products, in the recent years, the Company has actively developed the niche products of thin-film resistor and metal plate resistor products. Such products have been gradually applied to the main new models of premium customers, and will help the growth of the Company's future operations. ⑤ Maintaining strong customer interaction to stay attuned to market trends and establishing a comprehensive and sound marketing channel network Actively expanding downstream channels, providing fast services, and maintaining good relationships with original customers are the essential part of the Company's business development. In addition to focusing on research and development of the core business, the Company is also committed to maintaining customer relationships. After years of cultivation, it has won the trust of customers with continuous expansion of cooperation. A wide and deep customer base has been established. The Company can immediately provide customers with diverse products and technical support, further deepening the long-term cooperative partnership with customers. In addition, the Company also actively expands the mainland market through its overseas subsidiary, Shenzhen Ever Ohms, and builds the complete marketing channels through close cooperation with local distributors, for enhancing the Company's brand awareness and market share. ⑥ Complete product line to meet customers' full range of needs The Company is one of the few companies in the market that has thick-film, thin-film and metal plate product lines at the same time. With the complete product series combination, the Company is able to provide customers with a full range of resistance management solutions, and with modification depending on customers' specifications to solve the compatibility issues, making the products to have the advantages of anti-vulcanize, anti-surge, high voltage and high power. In addition, the Company can provide different chip specifications for the resistance structure of end products. Additionally, the Company's comprehensive design capabilities create customized services for customers with both uniqueness and adaptability. With technical and quality advantages, the Company provides customers with high-quality and cost-effective products. Attributed to the Company's stable product quality, good performance, complete specifications, comprehensive product lines, and the ability to provide customers with a full-fledged complete resistance solutions, the Company has successfully enter the supply chains of brand makers or OEM manufacturers of power supplies for industrial control, power supplies for consumer electronics such as laptops, in-vehicle/automotive electronics, and charging power supplies of smartphone, and has established a broad market foundation. (3) Positive and negative factors for future development, and the company's response to such factors ① Favorable Factors A. Integration of group resources for enhanced competitiveness In recent years, driven by rapid economic development, China's market for consumer electronics, telecommunications/5G networking, and automotive sectors has grown significantly faster than other regions, making it a major driver of global consumer 61 --- electronics and related components industry growth. Accordingly, to deepen the company's presence in the China market and serve customers locally, the company established its subsidiary Shenzhen Tian'er in 2018 to provide localized sales and customer service. At the same time, by integrating the production location advantages of strategic alliances and optimizing production capacity, the company is able to rapidly reduce costs through modular production upon securing large customer orders, creating barriers to entry for competitors. B. The resistor market is heading towards new application fields, and the industry where it operates has high potential of growth In recent years, the resistor products in the passive component industry have not only been applied in traditional information, communication and consumer electronics products, the demands for resistors of non-consumer electronic products, including automotive electronics, electric vehicles, Internet of Things and Netcom 5G has increased, leading the expanding application of passive components. With product functions becoming more complicated and diverse, power consumption is increasing, too. Therefore, more passive components are required to stabilize voltage and current, and filter noise, which will drive the continuous growth of demand for high-end passive components. Hence, the Company has relatively promising future growth space. C. Wide downstream applications for less affect from the prosperity of one single industry The Company's resistor products are widely applied in downstream industries, including power supplies, information, communications, consumer electronics, network communication equipment, automobiles, industries, home appliances and electrical products. The main application products include desktop computers and laptops, smart phones, industrial machines, precision instruments, electric vehicles, among other things. While each industry has a different economic cycle unavoidably, and the downstream end products also have different product life cycles, the economic fluctuations of one single industry or one single product will not have a significant effect on the prosperity of the passive component industry. Hence, the passive component industry is less vulnerable to the prosperity of one single industry. D. Increasing brand awareness year by year With the Company's active expansion of domestic and overseas markets in recent years, the Company's brand awareness has continued to increase. The Company has successively obtained the certifications of component manufacturers from well-known domestic and foreign manufacturers, while continuously improving the delivery time and precision, to provide complete services and full control over the delivery time, for building a sound customer base. In the future, the Company will continue to expand various niche products and deepen customer service, seeking to increase customer stickiness and enhance brand value. E. Complete and diversified customer base for sales, to expand marketing territory Through various sales models and mixes such as distribution agency, direct service, and peer partnership, the Company further expands diverse markets and customer bases, while being able to accurately promote the Company's advantageous processes and products to achieve a sales mix optimizing sales profits. F. Invest resources in the sustainable supply chain The Company and its suppliers and sales partners work together to promote carbon reduction, invest in equipment upgrades and optimize carbon reduction production technology. By doing this, we are able to elevate our competitive edge in the sustainable supply chain. ©Unfavorable Factors A. The trend of the big getting bigger in the industry is more obvious In recent years, domestic passive component manufacturers have expanded their operations through mergers and consolidations. Furthermore, due to the increased demand in domestic market for Chinese manufacturers, the scale of major players has grown rapidly. 62 --- The ecology of the resistors industry in passive components, similar to inductors and capacitors, is also moving toward the trend of the big getting bigger; in other words, the survival space of small and medium-sized manufacturers is compressed, so they must develop unique business strategies to avoid being eliminated. ## Countermeasures In terms of product strategy, the Company properly classifies products into standardized and differentiated products, clearly defines the operating strategies and main markets of each major product category, and refines process improvement, expands economic scale, and improves competitiveness, while continuously developing high-end products, to deepen the product competitive edges; in addition, by partnering with agents to enhance the visibility of its own products, and applying the professional sales and R&D teams to jointly develop new product designs with end customers, to strengthen the product competitiveness of the Company. In addition, in terms of business strategy, the Company cooperate with major peer manufacturers to supply the product lines of major peer manufacturers with niche products and stable delivery dates, and obtain products that our Company lacks of from major peer manufacturers. This partnership model enables the Company to quickly gain market share. B. The price of electronic products continues to decline, and the product prices are facing downward pressure. The resistor components developed and sold by the Company can be widely applied in various electronic products. Due to the price pressure of terminal electronic products and the impact of industrial competition, the average selling price gradually declines after the products enter the mature stage. If the Company is unable to maintain its technological leadership to increase sales, lower manufacturing costs, or develop products with higher added value, the level of profitability will be affected. ## Countermeasures In addition to working closely with existing suppliers to establish long-term and stable partnerships, the Company continues to improve technologies and manufacturing processes to improve product yields, for reducing unit production costs, so that prices have competitive edges with increased product competitive. In addition, for the market development trend, the Company will strengthen the design ability, elevate the technical threshold and improve the yields, to widen the gap with peer competitors. C. The imbalance between supply and demand in labor making it difficult to recruit entry level employees In recent years, domestic labor shortages have made it difficult for companies to recruit entry-level workers, high turnover rates of employees, and changes in the labor force structure; which has become a common difficulty faced by domestic companies. ## Countermeasures Not only introducing foreign workers and strengthening industry-school cooperation, the Company works with human resource agencies and increases recruitment channels, to diversify and increase the recruitment sources of new entry-level employees to fill the shortage of entry-level operators, while continuously increasing automation equipment, and working with equipment suppliers for the improvement of machines and equipment and increasing the efficiency of machines, for increasing production volume and reducing unit labor costs and demands for workforce. In addition, by strengthening pre-employment and on-the-job training for employees, the quality and productivity of employees are improved; moreover, various employee benefits are actively improved, employees' remunerations and year-end bonuses are distributed, to share operating results with employees, for enhancing employees' recognition, and reducing employee turnover. Meanwhile, it is planned to cooperate with colleges and universities for cooperative education to increase talent recruitment channels. D. The main raw materials are limited to a few manufacturers The Company's essential raw materials (such as paste) are restricted by the quantities, prices and delivery times of well-known foreign manufacturers; meanwhile, the resistor 63 --- products are diversified with and multiple specifications. To reduce procurement costs, the Company needs to procure in economical purchase quantities, which tends to increase operational risks such as raw material procurement and inventory backlog. ## Countermeasures The procurement costs are lowered with bulk purchases. Meanwhile, the Company has a disadvantage in purchasing bargaining power as the current operating scale is still small. In addition to maintaining good relationships with major raw material manufacturers, the Company is actively seeking alternative sources of materials to avoid the operational risks resulting from consolidation of purchases from a few suppliers. The Company also continues to expand the scale of operations to improve the bargaining power of raw material procurement, for reducing procurement costs. On the other hand, the Company always keeps business orders in check to improve the ability to predict supply and demand, increase inventory turnover, and reduce the risk of inventory backlog. Furthermore, the process improvement lowering the exposure to the fluctuation risk of one single raw material costs, is also one of the Company's cost reduction methods. E. The operation scales of international major manufacturers have the competitive advantage There is still a gap between the Company's operating scale and Murata, Taiyo Yuden, TDK, Yageo and other major international manufacturers. Therefore, for certain market expansion and overseas brand promotion, the Company is unable to directly compete with them due to the gap in resources and financial resources. Hence, for the competition for renowned brand system customers, the Company is relatively weak. ## Countermeasures After years of cultivation, the Company's products have established considerable market awareness and sales performance. In terms of product strategy, the Company avoids the fields where major manufacturers dominate, but uses its solid foundation of R&D team to improve the manufacturing process and launch cost-competitive products. Moreover, the Company also actively develops high-end application markets and new product R&D, and enters into niche markets, such as new product applications including thick-film resistors, thin-film resistors, and metal plate resistors for automotive and industrial electronics, to increase the dependence of customers on the Company's products. Meanwhile, the Company strengthens partnerships with agents to enhance market visibility, attracts well-known foreign brands to recognize the Company's products, actively strives to jointly develop new product designs with end customers, improves the degree of customization and differentiation, to increase the Company's operating scale. F. Some product quotations are denominated in foreign currencies, and profit levels tend to be affected by exchange rate fluctuation Some of the Company's products are mainly quoted in foreign currencies, and some of its raw materials are purchased from foreign suppliers. After the recurring purchases and sales being offset against each other, there is still a net foreign currency position. Therefore, exchange rate fluctuations have a certain degree of impact on the Company's profit level. ## Countermeasures The finance and accounting department of the Company usually uses the exchange rate fluctuation analysis provided by banks to fully grasp the exchange rate movements, while collecting relevant information on exchange rate fluctuations to grasp the domestic and foreign exchange rate trends, to lower the impact of exchange rate fluctuations. In addition, when quoting products, salespersons take the trend of exchange rate fluctuation into account to adjust product prices, for protecting the Company's sales profits. 2. Usage and manufacturing processes for the main products (1) Key usage of the main products Resistors can be divided into three categories: fixed, variable and non-linear. Resistors are one of the three major passive components, widely adopted in electrical equipment, home appliances, information, communications and other electrical appliances. The main usage is to 64 --- adjust the circuit voltage, or to protect components for surge absorption, temperature control and sensing. The Company's chip resistor products are fixed resistors. Because of their compact size, they fit the characteristics of compact electronic products, and are suitable for the requirements of various electronic, information and communication industrial products. (2) Manufacturing processes for the main products ① Thick/thin-film chip resistors: ![img-0.jpeg](img-0.jpeg) ② Metal plate resistors: ![img-1.jpeg](img-1.jpeg) 3. Supply situation for the major raw materials \| Name of raw materials \| Major supplier \| \| --- \| --- \| \| Paste \| The main raw materials of the resistors produced by the Company are substrates, pastes and packaging materials. To obtain stable sources of purchase, the Company has always maintained close cooperative relationships with suppliers, so the supply of materials is smooth. \| \| Substrate \| \| \| Packaging materials \| \| --- # 4. List of major suppliers and customers (1) List all suppliers accounting for 10 percent or more of the Company's total procurement amount in either of the most recent two fiscal years and the amounts bought from each and the percentage of total procurement accounted for by each; with the reason of change, if any Unit: NT$ thousands \| Year \| 2024 \| \| \| \| 2025 \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| Item \| Name \| Amount \| Percentage of annual net purchases (%) \| Relationship with the issuer \| Name \| Amount \| Percentage of annual net purchases (%) \| Relationship with the issuer \| \| 1 \| P1 \| - \| - \| None \| P1 \| 103,412 \| 15.02 \| None \| \| 2 \| P2 \| 92,286 \| 19.17 \| None \| P2 \| 100,254 \| 14.56 \| None \| \| 3 \| P3 \| 74,531 \| 15.48 \| None \| P3 \| 96,669 \| 14.04 \| None \| \| \| Others \| 314,644 \| 65.35 \| - \| Others \| 388,357 \| 56.38 \| - \| \| \| Net purchases \| 481,461 \| 100.00 \| - \| Net purchases \| 688,692 \| 100.00 \| - \| Company P1's purchase amount increased significantly in 2025, primarily due to revenue growth and the realization of synergies from strategic alliance cooperation, which drove a substantial increase in procurement volume. Company P2's purchase amount increased in 2025 due to increased procurement from Company P3 in response to order demand. Company P3's purchase amount increased in 2025, primarily due to rising raw material unit prices, which drove an increase in procurement expenditure. (2) List all customer accounting for 10 percent or more of the Company's total sales amount in either of the 2 most recent fiscal years and the amounts sold to each and the percentage of total sales accounted for by each; with the reason of change, if any Unit: Amounts expressed in thousands of New Taiwan Dollars \| Year \| 2024 \| \| \| \| 2025 \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| Item \| Name \| Amount \| Percentage of annual net sales (%) \| Relationship with the issuer \| Name \| Amount \| Percentage of annual net sales (%) \| Relationship with the issuer \| \| 1 \| S1 \| 267,894 \| 21.13 \| None \| S1 \| 292,895 \| 20.47 \| None \| \| 2 \| S2 \| 166,720 \| 13.15 \| None \| S2 \| 132,582 \| 9.27 \| None \| \| \| Others \| 833,232 \| 65.72 \| - \| Others \| 1,005,406 \| 70.26 \| - \| \| \| Net sales \| 1,267,846 \| 100.00 \| - \| Net sales \| 1,430,883 \| 100.00% \| - \| Company S2's revenue declined in 2025, primarily due to a slowdown in industry conditions and a significant drop in unit prices amid market price competition. # III. The number of employees employed for the most recent two fiscal years, and during the current fiscal year up to the date of publication of the annual report Unit: persons; % \| Year \| \| 2024 \| 2025 \| 2026 as of February 28 \| \| --- \| --- \| --- \| --- \| --- \| \| Number of employees \| Direct \| 283 \| 261 \| 256 \| \| \| Indirect \| 173 \| 174 \| 175 \| \| \| Total \| 456 \| 435 \| 431 \| \| Average age \| \| 38.46 \| 38.69 \| 38.83 \| \| Average years of service \| \| 5.67 \| 5.93 \| 6.11 \| \| Education distribution \| Doctoral degree \| 0.00 \| 0.00 \| 0.00 \| \| \| Master degree \| 4.39 \| 5.52 \| 5.57 \| \| \| College \| 37.06 \| 38.62 \| 38.75 \| \| \| Below senior high school (inclusive) \| 58.55 \| 55.86 \| 55.68 \| --- # IV.Disbursements for environmental protection 1. According to laws and regulations if it is required to apply for a permit for installing anti-pollution facilities, or permit of pollution drainage, or to pay anti-pollution fees, or to organize and set up an exclusively responsible unit/office for environmental issues, the description of the status of such applications, payment or establishment shall be made: The Company has installed air pollution control equipment pursuant to the regulations, obtained a stationary pollution source installation permit and a fixed pollution source operating permit, and paid pollution control fees pursuant to the Regulations Governing the Collection of Air Pollution Control Fee under the Air Pollution Control Act. The company has fulfilled all tax payment obligations in a timely manner and in accordance with applicable laws for the most recent two fiscal years and through the annual report publication date of 2025. In addition, the Company has obtained permit of pipelines of the sewage in the Kaohsiung Export Processing Zone pursuant to the regulations, and paid the charges for using sewage and sewer of Kaohsiung City pursuant to the regulations, as well as established the water pollution control measure plans and obtained the water pollution control permit pursuant to the regulations, with Grade A dedicated operators and agents appointed. Status of applying for a permit for installing anti-pollution facilities, or permit of pollution drainage \| Item \| Permit No. \| \| --- \| --- \| \| Stationary pollution source installation permit \| Jing-Jia-Kao-Chu No. BARA4990 \| \| Stationary pollution source installation permit \| Jing-Jia-Kao-Chu No. BARA4991 \| \| Stationary pollution source installation permit \| Jing-Jia-Kao-Chu No. BATB3490 \| \| Stationary pollution source operation permit \| Jing-Yuan-Gao-Huan-Zi No. BEYA4990 \| \| Stationary pollution source operation permit \| Jing-Yuan-Gao-Huan-Zi No. BDWA4993 \| \| Stationary pollution source operation permit \| Jing-Yuan-Gao-Huan-Zi No. BEWB3490 \| \| Water pollution control permit \| Kao-Shi-Fu-Huan-Tu-Shui-Tsuo-Zhi No. 00792-07 \| \| Water pollution control permit \| Kao-Shi-Fu-Huan-Tu-Shui-Tsuo-Zhi No. 01302-03 \| \| Enterprise waste removal and disposal plan \| Jing-Jia-Kao-Huan-Zhi No. 1110006176 \| \| Enterprise waste removal and disposal plan \| Jing-Jia-Gao-Huan-1120009005 \| Dedicated personnel of environment \| Item \| Dedicated personnel of environment \| \| --- \| --- \| \| Grade A dedicated personnel for waste (sewage) water disposal \| Pan Chih-Hao \| \| Grade B professional technician for waste disposal \| Liang Chin-Chung \| 2. List the Company's investment in major equipment for the environmental pollution control, the usages and possible benefits February 28, 2026 \| Unit: NT$ thousands \| Name of equipment \| Quantity \| Date of acquisition \| Investment costs \| Undiscounted balance \| Usage and expected effects \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| Air pollution control facilities (scrubber included) \| 1 \| 2025.02.21 \| 2,733 \| 2,239 \| Collecting and processing the waste gas generated from manufacturing process to meet the regulatory requirement \| \| Air pollution control facilities (scrubber included) \| 1 \| 2021.12.24 \| 1,761 \| 1,335 \| Collecting and processing the waste gas generated from manufacturing process to meet the regulatory requirement \| \| Air pollution control facilities (scrubber included) \| 1 \| 2018.11.22 \| 1,400 \| 222 \| Collecting and processing the waste gas generated from manufacturing process to meet the regulatory requirement \| \| Air pollution control facilities (scrubber included) \| 1 \| 2012.11.01 \| 4,401 \| - \| Collecting and processing the waste gas generated from manufacturing process to meet the regulatory requirement \| \| Water pollution control facilities \| 1 \| 2024.08.25 \| 6,551 \| 4,897 \| Collect and treat waste water generated from the manufacturing process to meet the regulatory requirements with proper treatment. \| \| Water pollution control facilities \| 1 \| 2022.04.25 \| 3,721 \| 1,292 \| Collect and treat waste water generated from the manufacturing process to meet the regulatory requirements with proper treatment. \| --- \| Water pollution control facilities \| 1 \| 2010.12.15 \| 3,287 \| - \| Collect and treat waste water generated from the manufacturing process to meet the regulatory requirements with proper treatment. \| \| --- \| --- \| --- \| --- \| --- \| --- \| 3. In the most recent two years and up to the publication date of the annual report, the Company's process of improving environmental pollution; in case of any pollution dispute, the process of handling should be described: none. 4. Any losses suffered by the company in the most recent two fiscal year and up to the annual report publication date due to environmental pollution incidents (including any compensation paid and any violations of environmental protection laws or regulations found in environmental inspection, specifying the disposition dates, disposition reference numbers, the articles of law violated, and the content of the dispositions), and disclosing an estimate of possible expenses that could be incurred currently and in the future and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided: none. 5. Describe the impact of the current pollution situation and its improvement on the Company's earnings, competitive position, and capital expenditures, as well as the expected major environmental protection capital expenditures in the next two years: none. 68 --- V. Labor relations 1. List the Company's employee welfare measures, continuing education, training, retirement system and its implementation situation, as well as the agreement between employees and the employer and the protection measures of various employee rights and interests (1) Employee welfare measures \| Benefits provided by the Company \| Benefits provided by the Employee Welfare Committee \| \| --- \| --- \| \| 1. Entitled to labor insurance, health insurance, and pension contribution \| 1. Birthday gift vouchers and new year gift vouchers \| \| 2. Group employee insurance \| 2. Wedding gifts, funeral subsidies, transportation subsidies \| \| 3. Distribution of employee uniforms and safety shoes \| 3. Employee travel \| \| 4. Provision of work safety protection measures \| 4. Special offers at the contracted merchants \| \| 5. Wedding gifts, grievance subsidies, hospitalization subsidies \| 5. Employee family day activities \| \| 6. Transportation allowance \| \| \| 7. Irregular afternoon tea events \| \| \| 8. Annual health check \| \| \| 9. Issuance of performance bonuses and year-end bonuses depending on operating conditions and performance \| \| (2) Training, education and diversified talent cultivation planning The company continues to build a comprehensive education and training system, planning diverse and systematic talent development mechanisms in accordance with organizational development strategies and competency requirements at each level. In addition to existing internal training programs, department heads submit annual training plans each year based on departmental operational goals and workforce development needs. The HR unit of the Administration Department coordinates overall planning and arranges external professional courses or continuing education resources as needed, to strengthen employee professional capabilities and enhance overall organizational competitiveness. I. New Employee Training A systematic onboarding training mechanism has been established for new employees. Training content covers corporate governance, corporate culture, personnel regulations, employee benefits, human rights policies, and occupational health and safety, helping new employees quickly familiarize themselves with the work environment and institutional norms, strengthening their identification with corporate values and workplace conduct, and improving early-stage adaptability and retention stability. II. On-the-Job Training To continuously enhance employee competencies and career development, diverse programs covering professional and technical skills, quality management, occupational health and safety, health promotion, and managerial competencies are planned according to different levels and job requirements. These are combined with hands-on practice and case sharing to strengthen employees' professional capabilities and problem-solving skills. In conjunction with the company's ongoing occupational safety, health, and wellness management policies, relevant training sessions and health promotion seminars are organized to raise overall employee awareness of workplace safety and health management. III. Talent Development and Career Cultivation Talent development mechanisms are continuously promoted through internal training, on-the-job training, and job rotation. Combined with annual performance evaluations and promotion systems, these mechanisms cultivate high-potential core talent. In 2025, employee promotion processes continued to be carried out, and through career development and internal cultivation mechanisms, employee retention intentions were enhanced and organizational stability was strengthened. IV. Education and Training Implementation In 2025, total internal and external training hours for general staff amounted to 5,753.0 hours, and total internal and external training hours for managerial staff amounted to 2,032.5 hours, for a combined total of 7,785.5 hours. Overall investment in education and training has remained at a consistently stable level, demonstrating the company's continued commitment to talent development and capability enhancement, and supporting the company's long-term development through systematic training mechanisms. --- (3) Retirement system and implementation thereof The Company has established its retirement measures in accordance with the Labor Standards Act and the Labor Pension Act as follows: 1. Employees may apply for retirement under any of the following circumstances: A. Those who have worked for 15 years or more and are at least 55 years old. B. Those who have worked for more than 25 years. C. Those who have worked for 10 years or more and are at least 60 years old. 2. The Company shall not force an employee to retire unless they fall into any of the following circumstances: A. Those who are at least 65 years old. B. Physical or mental disabilities that make them unfit to work. 3. The pension payment standards for employees are as follows: A. For years of service prior to the application of the Labor Standards Act, pension shall be calculated according to the applicable regulations at the time. If there were no applicable regulations at the time, the calculation shall be based on the Company's internal rules or the negotiation between the employer and the employee. B. For years of service of employees who are subject to the pension system under the Labor Standards Act (old pension system), pensions are calculated in accordance with Article 55 of the Labor Standards Act. However, for employees who are mandatorily retired in accordance with Article 35, Paragraph 1, Subparagraph 2, an additional 20% is provided for those with physical and mental disabilities due to the performance of their duties in accordance with Article 55, Paragraph 1, Subparagraph 2 of the Labor Standards Act. C. For employees subject to the Labor Pension Act (new pension system), the company contributes monthly an amount equal to 6% of each employee's wages (no less than 6%) to the employee's individual labor pension account. 4. The Company shall pay the pension to the employees within 30 days from the date of their retirement. (4) The agreements between the employees and the employer, and various measures to protect the rights and interests of employees To protect labor rights and coordinate labor relations, the Company is committed to strengthening the employee-employer harmony with two-way communication and coordination, to solve problems (quarterly employee-employer meetings are held). Except for general labor disputes or employee-employer agreement events, there has been no labor dispute that would affect the Company's finance and business materially. 2. List any losses suffered by the company in the most recent two fiscal year and up to the annual report publication date due to labor disputes (including any violations of the Labor Standards Act found in labor inspection, specifying the disposition dates, disposition reference numbers, the articles of law violated, the substance of the legal violations, and the content of the dispositions), and disclosing an estimate of possible expenses that could be incurred currently and in the future and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided. The company has always placed great importance on harmonious and stable labor-management relations, and continues to implement various human resources management measures in compliance with relevant labor laws and regulations. In the most recent two fiscal years and through the annual report publication date, the company has not experienced any significant labor disputes, has not been penalized by supervisory authorities for violations of the Labor Standards Act, and has incurred no losses arising from labor-management disputes. To continuously maintain sound labor-management relations, the company has established diverse communication mechanisms and complaint channels, and continuously optimizes these through labor-management meetings, employee care measures, and HR system improvements, in order to prevent potential disputes, safeguard employee rights and interests, and promote stable corporate development. 70 --- VI. Cyber security management 1. To strengthen the information security management, establish a safe and reliable digitized corporate, and ensure the security of data, systems, equipment and networks, a dedicated information department was established to, pursuant to related laws and regulations, conduct information security risk assessments and verify various levels of security requirements for information operations, adopting appropriate and sufficient information security measures to ensure the security of the Company's collection, processing, transmission, storage and circulation of internal and external information; its information security policy and management methods are as below: (1) Organizational framework of information security in Ever Ohms Technology Information security organization and institution ![img-2.jpeg](img-2.jpeg) (2) Information security policy The information security policy of Ever Ohms Tech is applicable to the Company and its global subsidiaries. The purpose is to ensure that information security meets the requirements of the laws and regulations and customer needs, and to reduce potential risks through systematic management. The focus of the policy is as follows: 1. Regulatory and Compliance: Establish an information security management mechanism that complies with domestic and international regulations and customer security requirements to ensure operational compliance. 2. Access Control and Personnel Management: All employees must adhere to strict data access control mechanisms and receive regular information security awareness training to heighten vigilance against potential internal and external threats. 3. Three principles of information security: Confidentiality, integrity, and availability, protecting the information assets of the Company and customers. 4. Risk Management and Incident Response: Conduct regular security vulnerability scans and risk assessments, with prompt remediation of identified weaknesses. In case of an 71 --- information security incident, the emergency response plan will be triggered to minimize the impact and restore the business operation as soon as possible. (3) Management program ① The Company's information security unit is responsible for the planning, implementation, monitoring and continuous improvement of information security measures, with key management programs including: 1. Formulation of information security policies and regulations: Establish and regularly update the "Procedures for Cybersecurity Management" to ensure compliance with the latest laws and regulations and technology standards. 2. Division of responsibilities and organizational management: Clearly define the information security management responsibilities and ensure that each department can effectively implement safety policies. 3. Management and training of personnel: Information security training is conducted regularly to enhance employees' safety awareness and reduce internal manpower risks. 4. Computer System and Network Security Management: Implement access control mechanisms and deploy firewalls, intrusion detection systems (IDS), and data encryption technologies to protect system and network security. 5. System Access and Maintenance Security: Conduct periodic reviews of account privileges to prevent unauthorized access. 6. Information Asset Management: Establish an information asset classification and protection mechanism to ensure sensitive data receives appropriate storage and encryption protection. 7. Physical and Environmental Security: Access control — server rooms are secured with access cards, fingerprint recognition, iris recognition, and other measures to restrict entry by unauthorized personnel. 8. Business Continuity Plan (BCP): Formulate a Disaster Recovery Mechanism (DRP) and regularly test contingency plans to ensure the company can rapidly resume operations in the event of an emergency. 9. Other Information Security Management Measures: Conduct unscheduled internal and external audits to ensure effective implementation of information security policies. 72 --- ②Implementation of each management task for the information security unit: \| Responsibility \| Description of responsibility \| Task \| Information security frequency \| \| --- \| --- \| --- \| --- \| \| Mail \| Mail sending and receiving control, abnormality handling \| 1. Mail sending and receiving control \| From time to time \| \| \| \| 2. Spam filtering \| Daily \| \| \| \| 3. Abnormal email processing \| From time to time \| \| Anti-hack, anti-virus \| Prevent computer intrusion and data leakage, or system failure to operate \| 1. Antivirus software installation and update \| From time to time \| \| \| \| 2. Information security reporting and promotion \| From time to time \| \| \| \| 3. Troubleshooting for the users’ computers \| From time to time \| \| \| \| 4. Processing operating system patch update \| From time to time \| \| Account management \| New recruits and resigned personnel, and changes of system application and permissions \| 1. Mail account management \| From time to time \| \| \| \| 2. Management of administrator’s account \| From time to time \| \| \| \| 3. Employee account management \| From time to time \| \| \| \| 4. Website account management \| From time to time \| \| Network management \| Data sharing, internet access control, abnormal traffic management \| 1. Resource sharing management \| From time to time \| \| \| \| 2. Internet access control \| From time to time \| \| \| \| 3. Intrusion prevention detection, abnormal traffic handling \| From time to time \| \| \| \| 4. Firewall settings \| From time to time \| (4) Information security measures for ransomware attacks Ransomware/worm continues to spread around the world. Worms actively attacks computer security vulnerabilities, and as long as the internet is connected to, there is a chance of being infected. The Information Department immediately implements and recommends the following actions to avoid virus attacks: (4.1) Use of anti-virus software and update systems, software, and applications in a timely manner: Attackers usually exploit unpatched vulnerabilities to access unauthorized systems and networks to execute subsequent malicious activities. - Anti-virus/anti-malware software should be installed and the virus patterns/malicious signatures should be updated. Performs a scan of the system and network and scans all received files at least once a week. - The connection of removable storage devices (e.g. flash drives) is prohibited. - Update the system, application software and firmware to the latest versions, and download the latest security update file. (4.2) Strengthening Security of Servers with Software Deployment Functions: Servers with software deployment capabilities — such as antivirus central management servers, AD servers, and asset management systems — require particular attention to security updates, and any abnormal changes to group policies or scheduled tasks must be closely monitored. (4.3) Enable Microsoft Office macros only when needed: Ransomware may inject malicious Marco into Microsoft Office files, and the macros will be executed when the victim opens Office, resulting in malware infection. (4.4) Minimize the settings of open ports: Ransomware may use exposed services and open ports (such as RDP port 3389 and SMB port 445) to spread on the network. Aside from confirming the necessity for open ports, the subjects using these services shall also be confirmed as trusted. (4.5) Set up firewalls to prevent any network connection behaviors with known malicious IPs and URLs. It is prohibited to use rules that allow any connection. Only IPs and DNs of external services are allowed. (4.6) Principle of Least Privilege for Users: To minimize the opportunity for attackers to gain administrative access, the following measures should be applied: control and restrict access permissions by providing all users with the minimum privileges required for their work, with particular attention to accounts requiring remote login, such as RDP. The usage of all accounts is regularly reviewed and inactive accounts are deactivated. (4.7) Raise awareness of information security: Employees should undergo regular training to establish good awareness of information security and internet usage habits, such as identifying suspicious emails, not to click on any links at will, and not to open email attachments from unknown or untrusted sources, and conduct social engineering drills to improve training --- effectiveness. (4.8) System backup: A system backup mechanism shall be planned for the important service system to ensure that the service can be maintained normally in the event of a system error. (4.9) Enabling the system event logs to record system failures or abnormalities. (4.10) 3-2-1 backup principle: 3 copies, 2 types of storage media, and 1 different storage location. (4.11) Regular maintenance of image files for important systems: The image files of a virtual machine or server include pre-configured operating systems and related application software. In the event of an attack, and the system needs to be rebuilt, these image files can be used to achieve rapid deployment and recovery. 3. List any losses suffered by the company in the most recent two fiscal year and up to the annual report publication date due to significant cyber security incidents, the possible impacts therefrom, and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided: no such situation. 74 --- VII. Important contracts \| Nature of contract \| Parties \| Beginning and end dates of contract \| Major content \| Restrictive clauses \| \| --- \| --- \| --- \| --- \| --- \| \| Loan contract \| Taishin Bank \| 2025.10.31 - 2026.10.31 \| Secured borrowings \| None \| \| Loan contract \| CTBC \| 2025.11.30 - 2026.11.30 \| Short-term credit loan \| None \| \| Loan contract \| Mega Bank \| 2026.03.07 - 2027.03.06 \| Short-term credit loan \| None \| \| Loan contract \| First Bank \| 2025.10.15 - 2026.10.15 \| Short-term credit loan \| None \| \| Loan contract \| E-Sun Bank \| 2025.12.04 - 2026.12.04 \| Short-term credit borrowings/secured borrowings \| None \| \| Loan contract \| Taipei Fubon Bank \| 2025.03.25 - 2026.03.25 \| Short-term credit borrowings/secured borrowings \| None \| \| Loan contract \| Yuanta Bank \| 2025.04.28~2026.04.28 \| Short-term credit loan \| None \| \| Loan contract \| Cathay United Bank \| 2025.11.10 - 2026.11.10 \| Short-term credit loan \| None \| \| Loan contract \| Bank of Taiwan \| 2026.03.04 - 2027.03.04 \| Short-term credit loan \| None \| \| Loan contract \| China Bills Finance Corporation \| 2025.05.14 - 2026.05.13 \| One-year commercial paper \| None \| \| Land lease agreement \| Kaohsiung Branch Export Processing Zone Administration, MOEA \| 2026.03.01 - 2036.03.29 \| Land lease for the Kaohsiung EPZ Plant \| Not to be re-leased or subleased; renewal shall be applied three months prior to the expiry \| \| Land lease agreement \| Kaohsiung Branch Export Processing Zone Administration, MOEA \| 2026.01.01 - 2035.12.31 \| Land lease for the Kaohsiung EPZ Plant II \| Not to be re-leased or subleased \| \| Land lease agreement \| Kaohsiung Branch Export Processing Zone Administration, MOEA \| 2018.09.25 - 2028.09.30 \| Land lease for Linguang District \| Not to be re-leased or subleased \| --- # Five. Review and Analysis of Financial Position and Financial Performance, and Risk Matters # I. Financial position Main reasons for any material change in the company's assets, liabilities, or equity during the past two fiscal years, and describe the effect thereof, and the measures to be taken in response: Unit: NT$ thousands \| Year Item \| 2024 \| 2025 \| Difference \| \| \| --- \| --- \| --- \| --- \| --- \| \| \| \| \| Amount \| Percentage (%) \| \| Current asset \| 1,080,115 \| 1,196,009 \| 115,894 \| 10.73 \| \| Property, Plant and Equipment \| 812,628 \| 768,077 \| (44,551) \| (5.48) \| \| Intangible asset \| 8,872 \| 7,504 \| (1,368) \| (15.42) \| \| Other assets \| 234,837 \| 257,850 \| 23,013 \| 9.80 \| \| Total assets \| 2,136,452 \| 2,229,440 \| 92,988 \| 4.35 \| \| Current liabilities \| 647,974 \| 769,746 \| 121,772 \| 18.79 \| \| non-current liabilities \| 24,658 \| 25,515 \| 857 \| 3.48 \| \| Total liabilities \| 672,632 \| 795,261 \| 122,629 \| 18.23 \| \| Share capital \| 884,711 \| 884,711 \| - \| - \| \| Additional paid-in capital \| 455,675 \| 455,675 \| - \| - \| \| Retained earnings \| 116,178 \| 115,643 \| (535) \| (0.46) \| \| Other equities \| 7,256 \| (21,850) \| (29,106) \| (401.13) \| \| Total Equity \| 1,463,820 \| 1,434,179 \| (29,641) \| (2.02) \| \| 1. Main reason and effect of material changed items (the change between two consecutive period is 20% or more, and the amount of change reaches NT$10 million): (1) Decrease in other equity: Primarily due to unrealized losses on financial assets measured at fair value through other comprehensive income that have been held long-term. 2. Measures to be taken in response to these with significant effects: The aforesaid changes have no major negative impact on the Company, and the overall performance of the Company has no major abnormality, so no responsive plan is supposed to be required. \| \| \| \| \| --- # II. Financial performance: Main reasons for any material change in operating revenues, operating income, or income before tax during the past two fiscal years, provide a sales volume forecast and the basis therefor, and describe the effect upon the company's finance and operations as well as measures to be taken in response Unit: NT$ thousands \| Year Item \| 2024 \| 2025 \| Difference \| \| \| --- \| --- \| --- \| --- \| --- \| \| \| \| \| Amount \| Percentage (%) \| \| Net operating revenue \| 1,267,846 \| 1,430,883 \| 163,037 \| 12.86 \| \| Operating costs \| 1,043,089 \| 1,174,687 \| 131,598 \| 12.62 \| \| Gross profit \| 224,757 \| 256,196 \| 31,439 \| 13.99 \| \| Operating expenses \| 193,636 \| 211,522 \| 17,886 \| 9.24 \| \| Operating profit \| 31,121 \| 44,674 \| 13,553 \| 43.55 \| \| Non-operating income and expense \| 36,112 \| 11,824 \| (24,288) \| (67.26) \| \| Profit before tax \| 67,233 \| 56,498 \| (10,735) \| (15.97) \| \| Income tax benefits (expenses) \| (10,466) \| (12,100) \| (1,634) \| 15.61 \| \| Current period net profit \| 56,767 \| 44,398 \| (12,369) \| (21.79) \| \| Other comprehensive income or loss for the year \| (7,045) \| (29,804) \| (22,759) \| 323.05 \| \| Profit after tax \| \| \| \| \| \| Total comprehensive income in the current period \| 49,722 \| 14,594 \| (35,128) \| (70.65) \| \| 1. Main reason and effect of material changed items (the change between two consecutive period is 20% or more, and the amount of change reaches NT$10 million): (1) Increase in net operating profit: Primarily due to revenue growth in 2025, higher capacity utilization rates, and the realization of strategic alliance synergies leading to lower unit costs, resulting in increased net operating profit. (2) Decrease in non-operating income and expenses: Primarily due to significant exchange rate volatility in the first half of 2025, causing net foreign currency exchange gains to decline compared to FY2024. (3) Decrease in other comprehensive income (net of tax) for the current period: Primarily due to unrealized losses on financial assets measured at fair value through other comprehensive income that have been held long-term. (4) Decrease in net profit for the period and total comprehensive income for the period: Primarily due to lower profits in 2025 and the impact of valuation losses on financial assets recognized in other comprehensive income. 2. Expected sales volume and basis, possible impact on the Company's future financial business and response plan: Not applicable because the Company has not published financial forecasts. \| \| \| \| \| --- 78 # III. Cash flow (I) Analysis of Cash Flow Changes for the Most Recent Fiscal Year (2025) \| Year Item \| 2024 \| 2025 \| Increase (decrease) \| \| --- \| --- \| --- \| --- \| \| Net cash inflow from operating activities \| 231,286 \| 129,041 \| (102,245) \| \| Net cash outflow from investment activities \| (189,186) \| (173,812) \| 15,374 \| \| Net cash inflow (outflow) from financing activities \| (17,243) \| 51,066 \| 68,309 \| \| Analysis of changes: (1) Decrease in net cash inflows from operating activities: Primarily due to inventory increases in 2025, which reduced cash inflows. (2) Decrease in net cash outflows from investing activities: Primarily due to investments in financial assets measured at fair value through other comprehensive income in 2024. (3) Increase in net cash inflows from financing activities: Primarily due to the payment of cash dividends and increased short-term borrowings to meet operating needs in 2025. \| \| \| \| (II) Corrective measures to be taken in response to illiquidity in the most recent years: The Company has no illiquidity. (III) Cash Liquidity Analysis for the Coming Year (2026): \| Cash balance at the beginning ① \| Expected net cash flow from operating activities for the whole year ② \| Expected net cash flow from investing activities for the whole year ③ \| Expected net cash flow from financing activities for the whole year ④ \| Expected amount of cash balance (deficit) ①+②+③+④ \| Remedial measure of expected cash deficit \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| \| \| \| \| Financing plans \| Treasury plans \| \| 321,464 \| 250,000 \| (150,000) \| (50,000) \| 371,464 \| Not applicable \| Not applicable \| \| 1. Analysis of the changes in cash flow for the coming year: (1) Operating activities: mainly due to the infusion from the continuously growing operating revenue resulting the net cash inflow from operating activities. (2) Investing activities: mainly due to continuous investment in capital expenditures resulting net cash outflow from investment activities. (3) Financing activities: Primarily reflecting planned repayment of bank borrowings, resulting in net cash outflows from financing activities. 2. Remedial measure of expected cash deficit and analysis of liquidity: no cash deficit \| \| \| \| \| \| \| # IV. Effects upon financial operations of any major capital expenditures during the most recent fiscal year In the past two years and as of the date of publication of the annual report, the major capital expenditure was mainly due to the continuous plant expansion plan. The company's working capital and the loan line provided by the bank should be sufficient to cover the capital expenditure of the latest year, so the major capital expenditure of the latest year has no significant impact on the financial and business. --- V. The reinvestment policy for the most recent fiscal year, the main reasons for the profits/losses generated thereby, the plan for improving re-investment profitability, and investment plans for the coming year (I) The Company's reinvestment policy The Company has established the "Operating Procedures for Acquisition and Disposal of Assets" pursuant to the "Regulations Governing the Acquisition and Disposal of Assets by Public Companies," as the reference for reinvestment by the Company, to grasp the related business and finance status; additionally, to enhance the supervision and management to the investees, the Company also has established the "Regulations for Supervising and Managing Subsidiaries" in the internal control system, to monitor the operations of the subsidiaries regularly. In addition, the Company also always monitors the operating conditions of the investee enterprises and analyzes the investment results, to facilitate the follow-up evaluation of the decision-makers after the investment. (II) The profits/losses generated from the reinvestment for the most recent fiscal year, the plan for improving re-investment profitability, and investment plans for the coming year As of December 31, 2025 \| Unit: NT$ thousands \| Item By Company \| Shareholding percentage \| Investment amount \| Profit (loss) recognized by investee companies in 2025 \| Main reason of profits/losses \| Improvement plans \| Investment plans for the coming year \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| Shenzhen Ever Ohms Electronic Co., Ltd. \| 100% \| 60,359 \| 15,088 \| This was mainly due to the fact that the overall market rebounded and investment income was recognized. \| - \| Depending on the operations \| \| Leader New Energy Technology Co., Ltd. \| 20% \| 10,000 \| 1,500 \| As the sales channel of its products recovers, the investment income should be recognized. \| - \| Depending on the operations \| VI. Risk matter analysis and assessment (I) The effect upon the company's profits (losses) of interest and exchange rate fluctuations and changes in the inflation rate, and response measures to be taken in the future 1. The effect upon the company's profits (losses) of interest rate fluctuations and response measures to be taken in the future The company's interest expense for 2025 was NT$8,746 thousand, representing 0.61% of 2025 revenue. As interest expense accounts for a very small proportion of revenue, changes in interest rate levels do not have a material impact on the company's profit or loss. In the future, the Company will adjust the manner to utilize funds timely depending on the changes in financial interest rates, and take necessary measures timely to reduce the impact of changes in interest rates on the Company's gains and losses. 2. The effect upon the company's profits (losses) of exchange rate fluctuations and response measures to be taken in the future (1) The effect upon the company's profits (losses) (NT$/NT$1,000) \| Item/ year \| 2025 \| \| --- \| --- \| \| Net exchange gains (losses) \| 1,171 \| \| Operating income \| 1,430,883 \| \| Operating profit \| 44,674 \| \| Net exchange gain as a percentage of consolidated operating revenue (%) \| 0.08 \| \| Net exchange gain as a percentage of consolidated net operating profit (%) \| 2.62 \| Source: The financial reports audited by the CPAs. The Company's export products are mainly quoted in CNY and USD. Due to the higher proportion of export sales, fluctuations of exchange rates have a certain degree of impact on the Company's gains and losses. The finance and accounting department of the Company also collects information on exchange rate movement all the time, grasps exchange rate trends, and determines the exchange rate movement, to take timely hedging operations or dynamically adjust --- foreign exchange deposits, while maintain good relationship with banks to take proper and timely countermeasures for exchange rate movements, to lower the exchange rate risk. 3. The effect upon the company's profits (losses) of changes in the inflation and response measures to be taken in the future The Company always monitors the fluctuation of market prices, and maintains good interactive relationships with suppliers and customers, to avoid any material impact on the Company resulting from the inflation. Currently, there has been no immediate material impact due to inflations. (II) The policy regarding high-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses generated thereby; and response measures to be taken in the future: The Company has always insists the principle of focusing on the core business and pragmatism when operating the business. The financial policy adopts the principle of prudence and conservatism. The Company does not engage in high-risk, high-leverage investment, provisions loans, endorsement and guarantees to others, nor the derivative trading. The Company has formulated the "Operating Procedures for Loaning of Funds to Others", "Operating Procedures for Endorsement/Guarantees," and "Procedures for Acquiring or Disposing of assets." Where the Company engages in provisions loans, endorsement and guarantees to others, or the derivative trading, the established policies shall be complied with. As of 2025 and through the annual report publication date of 2026, the company has not extended loans to third parties, provided endorsements or guarantees on behalf of others, or engaged in derivative financial instrument transactions. (III) Research and development work to be carried out in the future, and further expenditures expected for research and development work 1. Research and development work to be carried out in the future Facing the rapid supersession of the electronic industry, the Company continues to research products with higher quality and performance. To follow the trend of miniaturization of electronic products, the Company continues to invest in research and development manpower to improve the miniaturization process to meet market demands; responding the EU environmental protection requirements, the full range of products of lead-free chip resistor have been researched and manufactured, while participating in the product development plans of major electronic manufacturers, for joint research and development of new products to create a win-win situation. The Company's future key products to be researched and developed are described as below: \| Business Department \| R&D plan \| \| --- \| --- \| \| Thick-film R&D Section \| Development of thick-film ultra-high-power aluminum nitride substrate resistors Development of lead-free products across all thick-film chip resistor series Thick-film high-stability chip resistors QS 1206/1210/2010/2512 Thick-film high-precision chip resistors QP 1206/1210/2010/2512 Thick-film high-current jumper chips compliant with AEC-Q200 specifications Expansion of resistance value upper limit for thick-film copper-process chip resistors \| \| Thin-film R&D Section \| Development of thin-film high-voltage high-stability chip resistor TSV series Integration of equipment and introduction of thin-film TR/TRL 01005 chip resistors into mass production Development of thin-film ultra-high-power chip resistors using THH aluminum nitride substrate Technical integration of TBL1008 three-electrode metal-film low-resistance chip resistors \| \| Metal Plate R&D Section \| Expansion of resistance value range for metal plate MA 0612/0508 wide-electrode products Expansion of resistance value range for metal plate MAF0612 four-terminal resistors Expansion of resistance value range for metal plate MAH2512 high-power products Development of metal plate MAH1206 small-size high-power products Development of metal plate MU2512-0.1mΩ ultra-low resistance products Development of metal plate MR1206 packaged products \| 2. Expected R&D expense invested The company will continue to invest in product R&D and continuous improvement to enhance existing technology and market competitiveness. R&D expenditure for 2026 is estimated to account for approximately $3 - 5\%$ of net revenue. 80 --- (IV) Effect on the company's finance and operations of important policies adopted and changes in the legal environment at home and abroad, and measures to be taken in response: The Company's operations have always comply with the ethical principles and the laws and regulations promulgated by relevant domestic and foreign governments and agencies. Other than performing business pursuant to the current laws and regulations, the Company also closely monitors important domestic and foreign policy trends, policy formation and legislative progress related to the Company's operations, and proactively proposes timely countermeasures accordingly. For the most recent year up to the publication date of the annual report, there has been no effect on the Company's finance and operations of important policies adopted and changes in the legal environment at home and abroad. (V) Impact of Technological Changes (including cybersecurity risks) and Industry Changes on the Company's Financial and Business Operations, and Corresponding Response Measures: The Company continues to monitors the changes in industry-related technologies and technological development, improves product research and development capabilities and efficiency on the ongoing basis, while appropriately adjusting the Company's operating strategies, and actively providing the best solutions with customers during the research and development stage to strengthen customer's stickiness and increase the Company's market competitiveness. Therefore, during the most recent year and as of the publication date of the annual report, developments in science and technology as well as industrial change have had no material effect on the Company's finance and business. Regarding cybersecurity risks, in addition to regularly analyzing internal and external cybersecurity risks, the company strengthens its internal information security protection network and conducts regular vulnerability scans and penetration testing to protect corporate information assets, ensuring continuous business operations and system security. Regular internal and external audits are conducted to ensure compliance in financial and information security management. The company has not experienced any cyberattacks or information security incidents in the most recent fiscal year or through the annual report publication date. (VI) Effect on the company's crisis management of changes in the company's corporate image, and measures to be taken in response: Since its incorporation, the Company has complied with relevant laws and regulations, while maintaining a harmonious labor relation, to continuously maintain a good corporate image. The Company has not had any incident affecting the corporate image in the most recent year and as of the date of publication of the annual report. (VII) Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken: For the most recent year up to the publication date of the annual report, there has been no plan for merger and acquisition. (VIII) Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken: None. (IX) Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken: 1. Consolidation of purchases For the most recent year up to the publication date of the annual report, the Company has had no single supplier accounting for more than 20% of the net purchase, and thus no risk of over-consolidated purchase. For any single raw material, the Company maintains more than two suppliers, and has established stable and good cooperative relationships with the major suppliers for many years, so the production deployment are not to be affected by the shortage of supply. Meanwhile, the Company also continues to actively develop new suppliers to ensure stable supplies. Based on the above assessment, the Company has no risk of consolidation of purchases. 2. Consolidation of sales The Company's current main products are passive component chip resistors. The products are widely used in power supplies, computers, handheld devices, industrial equipment, and communication network equipment. The main sales customers are distribution agents and well- 81 --- known domestic and foreign manufacturers, and the Company maintains a long-term stable and good interactive cooperative relationship with them. The company's sales to its largest single customer in 2025 accounted for 20.47% of total revenue. This is primarily attributable to the high level of trust and recognition the company's products have earned from this customer, maintaining a close cooperative relationship. However, as the company expands its business and revenue continues to grow, the proportion of sales to the largest single customer has shown a year-on-year declining trend, decreasing from 27.57% in 2021 to 20.47% in FY2025. In terms of the overall sales proportion to the top ten customers, the company has actively developed new customers in recent years, resulting in a more diversified order base. Therefore, in nutshell, the consolidation risk of the Company's sales should not have a material adverse impact on the business and development. (X) Effect upon and risk to the company in the event a major quantity of shares belonging to a director, supervisor, or shareholder holding greater than a 10 percent stake in the company has been transferred or has otherwise changed hands, and mitigation measures being or to be taken: As of the publication date of the annual report, no major quantity of shares was transferred (XI) Effect upon and risk to company associated with any change in governance personnel or top management, and mitigation measures being or to be taken: During the most recent two years and as of the publication date of the annual report, no change in governance personnel or top management. (XII) Litigation and Non-Litigation Matters: For any significant litigation, non-litigation, or administrative dispute proceedings that have been concluded or are pending — involving the company, its directors, supervisors, general manager, substantive responsible person, major shareholders holding more than 10%, and subsidiaries — where the outcome may have a material impact on shareholders' equity or securities prices, the disputed facts, subject matter amount, commencement date of proceedings, main parties involved, and status through the annual report publication date shall be disclosed: None. 1. For litigious, non-litigious or administrative disputes involving the Company have been concluded by means of a final and unappealable judgment, or are still under litigation could materially affect shareholders' equity or the prices of the company's securities, 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 during the most recent two years and as of the publication date of the annual report: none. 2. Litigious, non-litigious or administrative disputes involving 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 have been concluded by means of a final and unappealable judgment, or are still under litigation could materially affect shareholders' equity or the prices of the company's securities during the most recent two years and as of the publication date of the annual report: none. 3. Any director, supervisor, managerial officer or shareholder holding a stake of greater than 10 percent have the circumstance specified in Article 157 of the Securities and Exchange Act during the most recent two years and as of the publication date of the annual report: none. (XIII) Other important risks, and mitigation measures being or to be taken: none. VII. Other important matters: none. 82 --- 83 # Six. Special Items to be Included ## I. Disclosure of information related to the company's affiliates: (I) Combined Business Report of Affiliated Enterprises For details, please visit the Market Observation Post System > Single Company > Electronic Document Download > Affiliated Enterprise Three-Report Section: (https://mopsov.twse.com.tw/mops/web/t57sb01_q10) (II) Combined Financial Statements of Affiliated Enterprises For details, please visit the Market Observation Post System > Single Company > Electronic Document Download > Affiliated Enterprise Three-Report Section: (https://mopsov.twse.com.tw/mops/web/t57sb01_q10) (III) Affiliation Report For details, please visit the Market Observation Post System > Single Company > Electronic Document Download > Affiliated Enterprise Three-Report Section: (https://mopsov.twse.com.tw/mops/web/t57sb01_q10) ## II. Status of private placement of securities in the most recent fiscal year and through the annual report publication date — including the date of approval by shareholders' meeting or board of directors, amount, basis and reasonableness of pricing, method of selecting specific persons, and reasons for the necessity of conducting the private placement — shall be disclosed: None. ## III. Other matters that require additional description: None. Seven. Any of the situations listed in subparagraph 2, paragraph 3, Article 36 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None. --- Ever Ohms Technology Co., Ltd. Chairman: Liao Chen-Yi

AI assistant

EVEROHMS Annual Report 2025

52641_rns_2026-05-28_caedc46d-67b9-4783-85af-fc7a94179572.pdf

Ever Ohms Technology Co., Ltd.

Table of Contents

One. Report to Shareholders

I. 2025 Operating Results

2025 Operating Overview

II.2026 Business Plans

5. Diversity and independence of the Board

(1) Board's diversity

(2) Board's independence

II. Remunerations paid to directors, general managers, deputy general managers, assistant general managers in the most recent years

III. State of the company's implementation of corporate governance

(I) Information on operation of Board of Directors

AI assistant

EVEROHMS — Annual Report 2025

52641_rns_2026-05-28_caedc46d-67b9-4783-85af-fc7a94179572.pdf

Ever Ohms Technology Co., Ltd.

Table of Contents

One. Report to Shareholders

I. 2025 Operating Results

2025 Operating Overview

II.2026 Business Plans

5. Diversity and independence of the Board

(1) Board's diversity

(2) Board's independence

II. Remunerations paid to directors, general managers, deputy general managers, assistant general managers in the most recent years

III. State of the company's implementation of corporate governance

(I) Information on operation of Board of Directors

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EVEROHMS Annual Report 2025