Stock Code: 1709

和益化學工業股份有限公司

FORMOSAN UNION CHEMICAL CORP.

Annual Report 2025

Notice to readers

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

Printed on April 13, 2026

The Annual Report is available at:
http://mops.twse.com.tw
http://www.fucc.com.tw

I. Spokesperson

Name / Huang, Jun-Zhe

Title / Senior Deputy Assistant General Manager

Tel / (02)2507-1234

E-mail /[email protected]

Acting Spokesperson

Name / Lin, Li-Jen

Title / Senior Deputy Assistant General Manager

Tel / (02)2507-1234

E-mail /[email protected]

II. Headquarters, Branches, and Plant

Headquarters / No. 80, Liuzhou Street, Wanhua District, Taipei City

Tel / (02)2507-1234

Plant / No.9, Shi-Hua 3rd Rd., Linyuan Dist., Kaohsiung City

Tel / (07)641-2921

III. Stock Transfer Agent

Name / Hua Nan Securities Co., Ltd. (Hua Nan Yung Chang)

Address / 4F, No. 54, Sec. 4, Minsheng E. Rd., Songshan Dist., Taipei City

Tel / (02) 2718-6425

IV. Certified Public Accountant

Deloitte & Touche (Taiwan)

Name / CPA Zhuang, Wen-Yuan, Lee, Tung-Feng

Address / 20F, No. 100 Songren Road, Xinyi District, Taipei City, Taiwan (R.O.C)

Tel / (02) 2725-9988

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

V. Overseas Securities Exchange N/A

VI. Corporate Website http://www.fucc.com.tw

I. Letter to Shareholders ... 1

II. Report of Corporate Governance

I. Information on the Company's directors, supervisors, general manager, assistant general managers, deputy assistant general managers, and the supervisors of all the Company's divisions and branch units ... 6
II. Remuneration paid to Directors, Supervisors, General Manager, and Deputy General Manager in the most recent year ... 33
III. The state of implementation of corporate governance ... 39
IV. Information on CPA professional fees ... 87
V. Replacement of CPA ... 87
VI. Information regarding the Chairman, General Manager, and Financial or Accounting Manager of the company who has worked with the CPA firm which conducts the Audit of the Company or an affiliate of said firm in the recent year ... 89
VII. Equity information in fiscal year 2025 and as of the publication date of the annual report ... 90
VIII. Top 10 shareholders and their relationships ... 92
IX. The number of shares held by the Company and Company Directors, Supervisors, managerial officers, and the entities directly or indirectly controlled by the Company in a single company, and calculating the consolidated shareholding percentage of the above categories. ... 93

III. Capital Overview

I. Capital and Shares ... 94
II. Major Shareholders ... 97
III. The Company's Policies regarding Dividends and Implementation Status ... 97
IV. The impact of the proposal of issuance of bonus shares to be reviewed by the shareholders' meeting on the Company's business operating performance and EPS ... 98
V. Employees' Compensation and Remuneration of Directors and Supervisors ... 98
VI. Buy-back of Treasury Stock ... 99
VII. Issuance of Corporate Bonds ... 99
VIII. Issuance of Preferred Stock, Global Depositary Receipts, Employee Stock Options ... 99
IX. Issuance of New Shares in Connection with Mergers or Acquisitions or with Acquisitions of Shares of Other Companies. ... 99
X. Financing Plans and Implementation ... 100

IV. Operations Overview

I. Operation Summary ... 101
II. Overview of Markets, Production, and Sales ... 108
III. Human Resources ... 115
IV. Environmental Protection Expenditure ... 115
V. Labor-Management Relations ... 120
VI. Information Technology Security Management ... 121
VII. Important Contracts ... 125

V. Review and Analysis of Financial Status and Performance and Risk Management

I. Analysis of Financial Status ... 126
II. Analysis of Financial Performance ... 127
III. Analysis of Cash Flow ... 129
IV. The impact of major capital expenditures in the most recent fiscal year on financial operations ... 129
V. Reinvestment policies in the most recent fiscal year, the main reasons for the gains or losses, and the plans for improvement and investment plan for next fiscal year ... 130
VI. Analysis and Assessment of Risks ... 131
VII. Other major matters ... 133

VI. Special Disclosure

I. Affiliated Companies ... 134
II. Private placement of securities over the past year and up to the date of publication of the annual report ... 138
III. Other Supplementary Information ... 138

VII. Material Event Impact, pursuant to Article 36-3-2 of the Securities and Exchange Act, on Shareholders' Equity or Share Price from Last Year up to the Annual Report being Published ... 138

I. Letter to Shareholders

Dear Shareholders,

In 2025, the Company’s consolidated revenue reached NT$9,009,157 thousand, representing a 12.57% decrease compared to NT$10,304,487 thousand in 2024. The global petrochemical industry has recently entered a consolidation phase, with the continued decline in oil prices exerting downward pressure on downstream chemical product prices. Furthermore, tight raw material supply, geopolitical factors, and reciprocal tariffs have increased the complexity of product development and sales, further compressing profit margins. On the operational side, overall production and sales remained balanced, mainly supported by the Company’s product portfolio, which focuses on essential cleaning products with stable demand from a steady consumer base. In addition, continued growth in sectors such as industrial cleaning has helped maintain healthy inventory levels, providing support to selling prices.

Overall, 2025 can be characterized as more challenging than previous years. In addition to tariff pressures, exchange rates also showed significant volatility. However, through a continued stable operation plan and constant product optimization, the Company was still able to maintain a certain level of operational performance and market share.

Looking ahead to 2026, the global political situation still faces many uncertainties, which may lead to significant fluctuations in oil prices. On the external front, China’s continued expansion of chemical production capacity is likely to intensify competition causing a supply-demand imbalance. Sales to the U.S. market, on the other hand, are expected to gradually stabilize as tariff negotiations have largely been settled. On the operational side, the Company will continue to advance its ESG initiatives to reduce carbon emissions, while also promoting new product development. In addition, the Company will remain flexible in adjusting its sales strategies and production scheduling in response to regional market changes, with the goal of maintaining high utilization rates and ensuring stable operations and sustainable development under challenging conditions.

With respect to the operations of the subsidiary companies,

United Performance Materials Corp. (UPM) will continue to develop specialty applications for its resin business and expand into higher-value product segments. For existing products, the focus will be on cost reduction and enhancing competitiveness, with the aim of outperforming industry peers.

Great Victory Chemical Industry Co., Ltd. (GVCI) will optimize its product portfolio, strengthen collaboration with international partners in developing new agrochemical products, and continue to reinforce its distribution network to further expand its presence in the domestic market.

Hershey Environmental Technology Co., Ltd. (HEC) will focus on product positioning and development in areas such as cleaning solutions for optoelectronic panels, air odor treatment, as well as petrochemical product distillation and sales as key development directions for the year.

Fusugar Industry Corp. (FSIC) will continue its cooperation with Defia Co., Ltd. in coffee roasting operations, while making effective use of existing plant facilities by leasing out idle factory space to generate additional income.

Chang Chun Formosan Union Fine Chemical (Changshu) Co., Ltd. (CCFU) is expected to commence trial production of its newly developed octylphenol product in July this year. Going forward, production will be flexibly adjusted between nonylphenol and octylphenol based on market demand, with the aim of improving overall plant utilization.

Finally, we would like to express our sincere appreciation to all shareholders for your continued support. The Company’s management team and all employees will remain committed to delivering sustainable and stable returns over the long term.

1. Business Performance Report for 2025

(1) Results

a. Total production volume is 163,734 metric tons
In 2025, total production volume reaches 163,734 metric tons, representing a decrease of 2,627 metric tons, or 1.58%, compared to 166,361 metric tons in 2024.

b. Total sales volume is 182,346 metric tons
In 2025, total sales volume reaches 182,346 metric tons, representing a decrease of 18,849 metric tons, or 9.37%, compared to 201,195 metric tons in 2024.

c. Total income is NT$9,169,061 thousand
(a) The operating income of 2025 reaches NT$9,009,157 thousand, a decrease of NT$1,295,330 thousand, or 12.57%, from NT$10,304,487 thousand in 2024.
(b) The total non-operating income of 2025 is NT$159,904 thousand.

d. Total expenditure is NT$8,429,749 thousand
The operating costs of 2025 are NT$7,665,428 thousand, of which the operating expenditure accounts for NT$712,410 thousand, and non-operating expenditure accounts for NT$51,911 thousand.

e. Surplus
For 2025, the pre-tax income is NT$739,312 thousand, which is a decrease of NT$148,615 thousand, or 16.74%, from NT$887,927 thousand in 2024. The income tax expense is NT$153,171 thousand, and the net income is NT$586,141 thousand. The net profit margin for 2025 is 6.51%.

(2) Status of Implementation of Budgets in 2025

Unit: NT$1,000

Items	Actual Amount	Budgeted Amount	Reaching Rate
Net Operating Revenue	9,009,157	9,030,782	99.76%
Operating Costs	7,665,428	7,850,079	97.65%
Gross Profit	1,343,729	1,180,703	113.81%
Operating Expense	712,410	696,993	102.21%
Operating Income	631,319	483,710	130.52%
Non-operating Income and Expense	107,993	179,870	60.04%
Pre-tax Income	739,312	663,580	111.41%

(3) Analysis of Financial Revenue and Expenditure, and Profitability of 2025 and 2024:

Unit: NT$1,000

Items	2025	2024	Amount Increase/ (Decrease)	Rate of Increase/ (Decrease)
Net Operating Revenue	9,009,157	10,304,487	(1,295,330)	(12.57%)
Pre-tax Income	739,312	887,927	(148,615)	(16.74%)
Profitability	8.21	8.62	(0.41)	(4.76%)

(4) Research and Development Status

a. R&D of diversification of hydrogenated products.
b. Technical development of derivatives related to surfactants.
c. Technical development of Bio-based materials.
d. Technical development of high-value chemicals.

2. Summary of Business Operation Plans for 2026

(1) Business Operation Policies

a. The Company prudently implements various quality control and environmental safety policies to ensure product quality and the maintenance of industrial safety and environmental protection among the areas of the plants.
b. Ensure the stable sources of supply of raw material and increase the utilization rate of production capacity to maximize the production efficiency of each plant and enhance the competitiveness of each product.
c. Enhance the control and management of costs and expenses, improve operating performance, and establish a competitive advantage in the markets.
d. Enhance the R&D of new applications of products for expansion to new markets and continue the Company's long-term development.
e. Enhance the recruitment and cultivation of talents to achieve the Company's goal of sustainable operation.
f. Maintain stable quality to improve customer satisfaction, which is the ultimate goal of the Company.

(2) Business Operation Goals

Units	Annual Estimated Sales Volume
Alkylation Units	151,126MT
Hydrocarbon Resin Units	35,636MT
Other Units	2,161MT

Alkylbenzene will be produced at full capacity according to market demand.

The Company will be dedicated to developing new markets for the products of alkyl phenol.

(3) Key Production and Sales Policies

a. Enhance the R&D, process improvement, new applications of products, implement ISO-9001 quality management and ISO-14001 environmental protection maintenance to optimize production and sales.

b. Implement comprehensive quality management, adopt customer demand-oriented marketing strategies to strengthen the partnership between upstream and downstream, and achieve the goal of equal sharing of profits.

3. Conclusions

The above reports are hereby attached for your reference.

We hereby wish you all the best!

Best regards,

(Sealed)

Chairman: Huang, Shen-Tsai

II. Report of Corporate Governance

I. Information on the company directors, supervisors, general manager, assistant general managers, deputy assistant general managers, and the supervisors of all the Company's divisions and branch units:

(1) Board Members

1-1. Information Regarding Board Members

Book closure date: April 13, 2026

Job Title	Nationality or Record of Birth	Name	Gender /Age	Date of Assignment	Term (years)	Date of First Assignment	Shares held when appointed		Shares held currently		Shares held by spouses and minor children		Shares held in another person's name		Significant Experience & Education	Concurrently Serving Position	Executives or Directors who are spouses or within two degrees of kinship
							Number of Shares	%	Number of Shares	%	Number of Shares	%	Number of Shares	%			Title	Name	Relation
Chairman	R.O.C.	Shin Shing Chemical Corp.	-	June 16, 2023	3	Dec.21,1973	17,775,500	3.73	18,824,000	3.95	0	0	0	0	N/A	N/A	N/A	N/A	N/A
Representative Director	R.O.C.	Huang, Shen-Tsai	Male /73	June 16, 2023	3	Jun. 13,2008	821,750	0.17	821,750	0.17	79,800	0.02	3,540,000	0.74	Hosei University Japan	Chairman / Hsin-Chuang Sportsware Corp.	Vice Chairman	Huang, Sheng-Shun	Brothers
																	Director	Huang, Teh-Lun	Father and son
Vice Chairman	R.O.C.	Huang, Sheng-Shun	Male /72	June 16, 2023	3	Jun. 24,1987	1,332,982	0.28	1,332,982	0.28	973,822	0.20	0	0	Law Department / National Taiwan University	Chairman / Cheng Meii Development Group	Chairman	Huang, Shen-Tsai	Brothers
Director	R.O.C.	Hemao Venture Investment Co., Ltd.	-	June 16, 2023	3	Jun.16,2017	9,857	0.00	9,857	0.00	0	0	0	0	N/A	N/A	N/A	N/A	N/A
Representative Director	R.O.C.	Chang, Li-Chiu	Male /74	June 16, 2023	3	Oct.08,2021	0	0	0	0	0	0	0	0	Institute of Insurance / National Chengchi University	Chairman / Ho Tung Chemical Corp.	N/A	N/A	N/A
Director	R.O.C.	Huang, Teh-Lun	Male /43	June 16, 2023	3	Jun.16,2017	590,200	0.12	590,200	0.12	317,186	0.07	0	0	National Dong Hwa University	Chairman / Defia Co., Ltd.	Chairman	Huang, Shen-Tsai	Father and son
Director	R.O.C.	Ever Prosperous Multitechnologies Enterprise Ltd.	-	June 16, 2023	3	Jun.22,1990	3,606,091	0.76	4,043,091	0.85	0	0	0	0	N/A	N/A	N/A	N/A	N/A
Representative Director	R.O.C.	Ko, Yen-Huei	Male /62	June 16, 2023	3	Jun 16, 2023	741	0.00	741	0.00	0	0	0	0	Ph.D. / Management National Central University	Chairman / Jenhealth Pharma Co., Ltd.	N/A	N/A	N/A
Director	R.O.C.	Hsin Chang Construction Corp.	-	June 16, 2023	3	Jun.16,2017	1,836,622	0.39	1,836,622	0.39	0	0	0	0	N/A	N/A	N/A	N/A	N/A

Job Title	Nationality or Record of Birth	Name	Gender /Age	Date of Assignment	Term (years)	Date of First Assignment	Shares held when appointed		Shares held currently		Shares held by spouses and minor children		Shares held in another person's name		Significant Experience & Education	Concurrently Serving Position	Executives or Directors who are spouses or within two degrees of kinship			Note
							Number of Shares	%	Number of Shares	%	Number of Shares	%	Number of Shares	%			Title	Name	Relation
Representative Director	R.O.C.	Kuo, Chih-Chun	Male /67	June 16, 2023	3	Jun.08,1993	1,720,412	0.36	1,720,412	0.36	978,398	0.21	0	0	Department / Civil Engineering/ Tamkang University	Chairman / Hsin Chang Construction Corp.	N/A	N/A	N/A
Director	R.O.C.	Lien, Te-Shih	Male /77	June 16, 2023	3	Jun.10,2011	123,908	0.03	123,908	0.03	0	0	0	0	World Journalism College	Chairman / Shin Shing Construction Corp.	N/A	N/A	N/A
Director	R.O.C.	Chi-Tong Investment Co., Ltd.	-	June 16, 2023	3	Jun. 17,2014	28,314,750	5.94	28,924,000	6.06	0	0	0	0	N/A	N/A	N/A	N/A	N/A
Representative Director	R.O.C.	Huang, Cheng-Feng	Male /39	June 16, 2023	3	Jun. 17,2014	44,488	0.01	44,488	0.01	0	0	0	0	Law Department / Fu Jen Catholic University	Chairman / True Investment Corp.	N/A	N/A	N/A
Director	R.O.C.	Lion Home Products (Taiwan) Co., Ltd.	-	June 16, 2023	3	June 16,2017	11,571,347	2.43	11,571,347	2.43	0	0	0	0	N/A	N/A	N/A	N/A	N/A
Representative Director	R.O.C.	Ho, Hao	Male /75	June 16, 2023	3	June 16,2017	0	0	0	0	0	0	0	0	Chinese Culture University	Consultant / Lion Home Products (Taiwan) Co., Ltd.	N/A	N/A	N/A
Director	R.O.C.	Kuo, Chen-Chih	Female /58	June 16, 2023	3	June 13,1996	3,111,104	0.65	3,111,104	0.65	0	0	0	0	Master's degree University of California, Los Angeles	N/A	N/A	N/A	N/A
Director	R.O.C.	Shi, Jia-An	Male /74	June 16, 2023	3	June 13,2008	486,904	0.10	486,904	0.10	134,957	0.03	0	0	National Taiwan Sports Institute	Chairman / Men Hsing Textile Co., Ltd.	N/A	N/A	N/A
Director	R.O.C.	Lee, Wen-Ling	Female /51	June 16, 2023	3	June.16, 2023	34,000	0.01	34,000	0.01	238,643	0.05	0	0	Department of Economics, Berkeley, California, USA	Chairman / Dah Chang International Co. Ltd.	N/A	N/A	N/A
Director	R.O.C.	Chen, De-Fong	Male /71	June 16, 2023	3	June 08,1993	2,330,023	0.49	2,330,023	0.49	244,798	0.05	0	0	Department of Chemistry / Chung Yuan Institute of Technology	Chairman / Jingxuan Investment Corp.	N/A	N/A	N/A
Director	R.O.C.	Formosa Chemicals & Fiber Corp.	-	June 16, 2023	3	Dec.21,1973	14,723,422	3.09	14,723,422	3.09	0	0	0	0	N/A	N/A	N/A	N/A	N/A
Representative Director	R.O.C.	Wu, Shin-Chang	Male /56	June 16, 2023	3	Dec 30,2021	0	0	0	0	0	0	0	0	Department / Business Administration / Tamkang University	Senior Manager / Formosa Biomedical Technology Corp.	N/A	N/A	N/A
Director	R.O.C.	Lin, Chun-Cheng	Male /66	June 16, 2023	3	June 16, 2023	209,326	0.04	12,326	0.00	590	0	0	0	Chinese Culture University	N/A	N/A	N/A	N/A	1

Job Title	Nationality or Record of Birth	Name	Gender /Age	Date of Assignment	Term (years)	Date of First Assignment	Shares held when appointed		Shares held currently		Shares held by spouses and minor children		Shares held in another person's name		Significant Experience & Education	Concurrently Serving Position	Executives or Directors who are spouses or within two degrees of kinship
							Number of Shares	%	Number of Shares	%	Number of Shares	%	Number of Shares	%			Title	Name	Relation
Independent Director	R.O.C.	Liao, Song-Yue	Male /69	June 16, 2023	3	June 16,2017	0	0	0	0	0	0	0	0	Hosei University Japan	Chairman / COTA Bank Corp.	N/A	N/A	N/A
Independent Director	R.O.C.	Lin, Lai-Ti	Female /57	June 16, 2023	3	June 16,2017	0	0	0	0	0	0	0	0	Department of Agricultural Chemistry / National Taiwan University	Chairman / Taiwan Industrial Services Foundation	N/A	N/A	N/A
Independent Director	R.O.C.	Chen, Hung-Wen	Male /67	June 16, 2023	3	June 16,2017	256,500	0.05	238,500	0.05	90,000	0.02	0	0	Department of Mass Communication/ Fu Jen Catholic University	Chairman / Core Rock Co., Ltd.	N/A	N/A	N/A
Independent Director	R.O.C.	Cho, Hsun-Jung	Male /72	June 16, 2023	3	June 16,2017	0	0	0	0	0	0	0	0	Ph.D., Pennsylvania State University, USA	Director/ Chung Hua School Corporation	N/A	N/A	N/A

Note : 1. Director Lin Chun-Cheng resigned from his position on the Board of Directors on February 26, 2025
2. There is no situation that the Chairman and the General Manager or the person with the equivalent position (the top manager) are the same person, each other's spouses or first-degree relatives.

1-2. Major Shareholders of Institutional Shareholders

Book closure date: April 13, 2026

Names of Institutional Shareholders	Major Stockholders of Institutional Shareholders
Shin Shing Chemical Corp.	Huang, Zi-Lun 10.03%, Huang, Sheng-Jean 5.03%, Chen, Shu-qing 4.97%, Wasion Investment Corp. 4.60%, Yihua Co., Ltd. 3.90%, Huang, Teh-Lun 3.64%, Deyuan Industrial Corp. 3.59%, Huang Jia Buyer Co., Ltd. 3.59%, Given Investment Co., Ltd. 3.55%, Huang, Cheng-Feng 3.13%
Hemao Venture Investment Co., Ltd.	Ho Tung Chemical Corp. 100%
Ever-Prosperous Multitechnologies Enterprise Co., Ltd.	KoSu Yang-Tzu 1.21%, Taiwan Venture Capital Co., Ltd. 14.11%, Ko, Chang-Huei 23.79%, Ko, Chun-Huei 26.21%, Ko, Yen-Huei 32.66%
Hsin Chang Construction Corp.	Ting Fu Investment Corp. 19.48%, Kuo, Li 12.65%, Kuo, Chun 12.65%, Kuo, Cheng-Lin 12.65%, Kuo, Cheng-Hsin 12.65%, Kuo, Chih-Chun 9.45%, Kuo Chien-Wen 9.20%, Han, Te-Ti 5.76%, Tsai, Hui-Chu 5.51%
Chi-Tong Investment Co., Ltd.	Huang, Shen-Tsai 16.67%, Huang, Sheng-Shun 16.67%, Huang, Sheng-Jean 9.61%, Cao, Zhao-Yi 9.61%, Huang, Li-Li 9.11%, Huang, Ying-Lin 9.11%, Hong, Rui-Bai 7.53%, Chang, Mei-Feng 4.17%, Tong, Mei-zhen 4.17%, Huang, Cheng-Feng 3.18%
Lion Home Products (Taiwan) Co., Ltd.	Lion Corporation 100%
Formosa Chemicals & Fiber Corp.	Chang Gung Medical Foundation 18.58%, Chindwell International Investment Corp. 6.35%, Vanson International Investment Co., Ltd. 3.80%, Formosa Plastics Corporation 3.39%, Nan Ya Plastics Corporation 2.40%, William Wang 2.19%, United Power Development Co., Ltd. 1.63%, Standard Chartered Bank's Investment Account with Genesis Capital Group (Inc.). 1.51%, HSBC Hosted the Account of Kendall Power Development Co., Ltd. 1.45%, Bank of Taiwan – In Custody for Wang Jhan-Yang Social Welfare Found 1.39%

1-3. Major shareholder of the major institutional shareholders

Book closure date: April 13, 2026

Names of Institutional Shareholders	Major Shareholders of Institutional Shareholders
Ho Tung Chemical Corporation.	Hang Yi Investment Co., Ltd. 10.25%, Capital Securities Corp – Custodian Account for Client Investments of Capital Securities (Hong Kong) Limited 6.11%, Bing Rong Co., Ltd. 5.23%
Ting Fu Investment Corp.	Lin Li Construction Corp. 30.80%, Kuo, Chih-Chun 14.25%, Kuo, Chien-Wen 14.20%, Han, Te-Ti 11.22%, Tsai, Hui-Chu 11.17%, Kuo, Cheng-Hsin 4.59%, Kuo, Cheng-Lin 4.59%, Kuo, Chun 4.59%, Kuo, Li 4.59%
Taiwan Venture Capital Co., Ltd.	Ko, Yen-Huei 22.4%, Ko, Chang-Huei 22.4%, Youyuan Co., Ltd. 27.6%, Ever-Prosperous Multitechnologies Enterprise Co., Ltd. 22%, Ko, Chun -Huei 4.4%
Wasion Investment Corp.	Tong, Mei-Zhen 40%, Tong, Huang-Li 20%
Yihua Co., Ltd.	Peng, Yi-Ping 30.82%, Lien, Shen-Shi 30.14%, Lien Hsu, Yue-Hua 19.18%
Toku Garden Corporation.	Huang, Sheng-De 11.82%, Huang, Lin Xue-Yun 11.82%, Huang, Zhen-Jin 5.91%, Huang, Fang-Fen 5.91%, Huang, Zhen-Bin 5.91% Huang, Bo-Han 5.03%, Huang, Bo-Hao 5.03%, Huang, Zhen-Zheng 4.61%, Chen, Ching-Fen 4.43%, Wu, Wen-hui 4.43%
Huang Jia Buyer Co., Ltd.	Huang, Zi-Lun 96.61%, Chen, Shu-Qing 3.39%

Names of Institutional Shareholders	Major Shareholders of Institutional Shareholders
Given Investment Co., Ltd.	Lien, Zheng-Wei 62.50%
Chang Gung Medical Foundation	Nan Ya Plastics Corporation 17.81%, Formosa Chemicals & Fiber Corp.13.71%, Formosa Plastics Corporation 13.15%, Wang Yung-Tsai (Dead)11.13%, Wang Yung-Chin (Dead)7.28%
Chindwell International Investment Corp.	Everred Corporate, Inc. (100%)
Vanson International Investment Co., Ltd.	Landmark Capital Holdings Inc. (100%)
Formosa Plastics Corporation	Chang Gung Medical Foundation 9.44%, Formosa Chemicals & Fiber Corp.7.65%, Citibank (Taiwan) Commercial Bank – Custodian for UBS AG Singapore Branch Investment Account 6.26%, Nan Ya Plastics Corporation Everred Corporate 4.63%, Chindwell International Investment Corp. 4.16%, Vanson International Investment Co., Ltd. 3.05%, Formosa Petrochemical Corp 2.07%, Ming Chi University of Technology 1.43%, CTBC Bank in custody for Yuanta Taiwan Top 50 ETF 1.26%, Citibank (Taiwan) Commercial Bank – Custodian Account for Goodyear Investment Co., Ltd. 1.00%
Nan Ya Plastics Corporation	Chang Gung Medical Foundation 11.05%, Formosa Plastics Corporation 9.88%, Formosa Chemicals & Fiber Corp.5.21%, Chang Gung University 4.00%, Vanson International Investment Co., Ltd. 2.39%, Formosa Petrochemical Corporation 2.26%, Chindwell International Investment Corp. 1.86%, Citibank (Taiwan) Commercial Bank – Custody of Investment Account of Macro System Corp. 1.45%, Standard Chartered – Custodian Account for RBS (Singapore) Ltd. 1.37%, Citibank (Taiwan) Limited, Taipei Branch, in custody for UBS AG - UBS AG Singapore Branch Investment Account 1.20%
United Power Development Co., Ltd.	Cabo de Roca Corporation. 100%
Standard Chartered Trusted Investment Account of Genesis Equity Group Inc.	Investment Account
HSBC Bank (Taiwan) Limited in Custody Investment Account of Power Unlimited Corp.	Investment Account
Bank of Taiwan – In Custody for Wang Jhan-Yang Social Welfare Found	Trust Account

10 -

1-4 Disclosure of Professional Qualifications of Directors and Supervisors and Independence of Independent Directors :

Name	Requirements	Professional Qualifications and Experiences
Chairman/Huang, Shen-Tsai	Over five years of experience in areas of commerce, legal, finance, related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one's own name, held by a spouse or underage child, or held by nominee agreement.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(11)Not under any of the categories stated in Article 30 of the Company Act.	N/A
Vice Chairman/Huang, Sheng-Shun	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one's own name, held by a spouse or underage child, or held by nominee agreement.
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.	N/A

11 -

Name	Requirements	Professional Qualifications and Experiences	Independence Criteria (Note 2)
			(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Director/Chang, Li-Chiu		Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third degree under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.	3

12 -

Name	Requirements	Independence Criteria (Note 2)
		(8)Not a Director, Supervisor, manager or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
Director/Huang, Teh-Lun	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship,	N/A

13 -

Name	Requirements	Independence Criteria (Note 2)
		partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Director/Ko, Yen-Huei	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration	N/A

14 -

Name	Requirements	Independence Criteria (Note 2)
		not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
Director/Kuo, Chih-Chun	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other	N/A

15 -

Name	Requirements	Independence Criteria (Note 2)
		Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
Director/
Lien, Te-Shih	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under	N/A

16 -

Name	Requirements	Independence Criteria (Note 2)
		Article 27 of the Company Act.
Director/Huang, Cheng-Feng	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(11)Not under any of the categories stated in Article 30 of the Company Act.	1
Director/Ho, Hao	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of	N/A

17 -

Name	Requirements	Independence Criteria (Note 2)
		Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
Director/Kuo, Chen-Chih	Over five years of experience in areas of commerce, law, finance, or related corporate business	(1)Not employed by the Company or any of the Company's affiliates.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse	N/A

18 -

Name	Requirements	Independence Criteria (Note 2)
		holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Director/
Shi, Jia-An	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse	N/A

19 -

Name	Requirements	Independence Criteria (Note 2)
		holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Director/
Lee, Wen-Ling	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse	N/A

20 -

Name	Requirements	Independence Criteria (Note 2)
		holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Director/
Chen, De-Fong	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the	N/A

21 -

Name	Requirements	Independence Criteria (Note 2)
		outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Director/Wu, Shin-Chang	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the	1

22 -

Name	Requirements	Independence Criteria (Note 2)
		outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
Independent Director/
Liao, Song-Yue	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(2)Not a Director or Supervisor of the Company or any of the Company's affiliates
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the	N/A

23 -

Name	Requirements	Independence Criteria (Note 2)
		outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Independent Director/Lin, Lai-Ti	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(2)Not a Director or Supervisor of the Company or any of the Company's affiliates
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse	N/A

24 -

Name	Requirements	Independence Criteria (Note 2)
		holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Independent Director/Chen, Hung-Wen	Over five years of experience in areas of commerce, legal, finance, or related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(2)Not a Director or Supervisor of the Company or any of the Company's affiliates
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act.
(6)Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority	N/A

25 -

Name	Requirements	Independence Criteria (Note 2)
		of the Board or voting rights.
(7)Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8)Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9)Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10)Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11)Not under any of the categories stated in Article 30 of the Company Act.
(12)No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.
Independent Director/
Cho, Hsun-Jung	Over five years of experience as a lecturer or above at a public or private college or university in fields related to business, law, finance, accounting, or other areas related business of the Company	(1)Not employed by the Company or any of the Company's affiliates.
(2)Not a Director or Supervisor of the Company or any of the Company's affiliates
(3)Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4)Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as specified in (1) through (3).
(5)Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of	N/A

26 -

Name	Requirements	Professional Qualifications and Experiences	Independence Criteria (Note 2)	Concurrently serving as an Independent Director of another listed company
			Article 27 of the Company Act.
(6) Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights.
(7) Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization.
(8) Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company.
(9) Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years.
(10) Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.
(11) Not under any of the categories stated in Article 30 of the Company Act.
(12) No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.

Note 1: The number of columns is adjusted depending on the actual needs.

Note 2: Independence is as follows:

(1) Not employed by the Company or any of the Company's affiliates.

(2) Not a Director of the Company or any of the Company's affiliates (this restriction does not apply to Independent Directors of the Company, its parent company, or its subsidiaries).

(3) Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.

(4) Not a spouse, kin at the second-degree relative under the Civil Code, or a direct blood relative within the third-degree relative under the Civil Code as

27 -

specified in (1) through (3).

(5) Not a Director, Supervisor, or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor, or employee of a corporate shareholder who is among the top 5 shareholders according to item 1 or item 2 of Article 27 of the Company Act (this restriction does not apply to Independent Directors of the Company, its parent company, or its subsidiaries).

(6) Not a Director, Supervisor, or employee of a corporate shareholder who holds the majority of the Board or voting rights (this restriction does not apply to Independent Directors of the Company, its parent company, or its subsidiaries).

(7) Not Chairman, President, or equivalent post of the company who himself/herself or spouse holds the position as Director, Supervisor, or employee of another company or organization (this restriction does not apply to Independent Directors of the Company, its parent company, or its subsidiaries).

(8) Not a Director, Supervisor, manager, or shareholder holding more than 5% of the outstanding shares of a specific company or institution in business or financial relationship with the Company (this restriction does not apply to Independent Directors of the specific company or organization which holds more than 20% and not exceeding 50% outstanding shares of the Company, its parent company, or its subsidiaries).

(9) Not a professional, owner, partner, Director, Supervisor, manager of the proprietorship, partnership, company, or institution that provides business, legal, financial, and accounting services to the Company or a spouse to the aforementioned persons rewarded remuneration not exceeding NTD 500,000 within last two years. Notwithstanding, this shall not apply to the Remuneration Committee members or members of a special committee of a public company for merger/consolidation and acquisition who perform their duties in accordance with the Securities Exchange Act and Business Mergers and Acquisitions Act.

(10) Not a spouse of or kin at the second-degree relative under the Civil Code to any other Director.

(11) Not under any of the categories stated in Article 30 of the Company Act.

(12) No government apparatus agency, juristic person, or its representative is elected under Article 27 of the Company Act.

1-5 Diversity and Independence of the Board of Directors:

(1) Policy and Implementation of Diversity of the Board of Directors Members:

Based on the policy of diversification, strengthening corporate governance, and promoting the development of a sound Board composition and structure, the company's nomination of director candidates complies with the company's articles of association and adopts the candidate nomination procedure. After measuring professional background or relevant professional qualifications, etc., the nomination will seek the review and approval from the Board of Directors, and then it will be sent to the shareholders' meeting for further election. The number of directors who also serve as company managers in the composition of the Board of Directors should not exceed one-third of the number of directors. Moreover, the Board of Directors should consider its own operation, business model and development needs, to formulate an appropriate diversity policy, including but not limited to the following:

Basic conditions and values: gender, age, nationality, and culture
Professional background (e.g. law, accounting, industry, finance, marketing or technology), professional skills and industry experience.
28 -

The Board members of the Company generally possess the knowledge, skills, and qualities necessary for the performance of their duties. To achieve the ideal objectives of corporate governance, the Board of Directors as a whole possesses the following competencies:

operational judgment skills.
accounting and financial analysis skills.
business management skills.
crisis management skills.
industry knowledge.
international market view.
leadership skills.
decision-making ability.

The Company currently has a total of 18 members on the Board of Directors (following one resignation), including 4 independent directors, specializing in the fields of finance and accounting, law, marketing, chemical engineering, and business management. Among the board members, there are 3 female directors and 1 director with employee status. The Company has always been committed to gender equality within its Board of Directors; currently, there are 3 female directors among the 18 members, representing 17%.

Explanation and Measures for Not Meeting the One-Third Gender Representation Requirement on the Board of Directors:

(1) Explanation: According to the Company's Articles of Incorporation, there are 18 members on the Board of Directors. (following one resignation) The current directors were elected at the shareholders' meeting held on June 16, 2023. Among them, there are three female directors. Although this met the relevant legal requirements at the time, it still falls short of the one-third threshold. This is primarily due to the nature of the industry, where identifying suitable talent within a short period is challenging.
(2) Action Taken: The Company will broaden its search for board candidates beyond industry peers, actively seeking female nominees from academia, non-governmental organizations (NGOs), or cross-industry consultancies who can provide diverse perspectives.

The current Board of Directors of the Company consists of 18 directors (following one resignation). The specific management objectives and achievement of the board diversity policy are as follows:

Management objectives	Achievement
Directors who also serve as company managers should not exceed one-third of the number of directors	reached
The term of independent directors has not exceeded 3 terms	reached
Adequate and diverse expertise and skills	reached

The implementation status of the Board Diversity Policy is as follows:

Name\Diversification Core items	Nationality	Basic Component	Professional background / Experience	Knowledge and Skill
Gender	Employee of the company	Age	Seniority of tenure / Independent Directors	Account -lng
31~40	41~50	51~60	61~70	71~80
Director	Huang, Shen-Tsai	R.O.C.	male
Huang, Sheng-Shun	R.O.C.	male
Chang, Li-Chiu	R.O.C	male
Huang, Teh-Lun	R.O.C	male
Ko, Yen-Huei	R.O.C.	male
Kuo, Chih-Chun	R.O.C.	male
Lien, Te-Shih	R.O.C.	male
Huang, Cheng-Feng	R.O.C.	male		V
Ho, Hao	R.O.C	male
Kuo, Chen-Chih	R.O.C	female
Shi, Jia-An	R.O.C	male
Lee, Wen-Ling	R.O.C.	female
Chen, De-Fong	R.O.C.	male
Wu, Shin-Chang	R.O.C.	male
Independent Director	Liao, Song-Yue	R.O.C.	male
Lin, Lai-Ti	R.O.C.	female
Chen, Hung-Wen	R.O.C	male
Cho, Hsun-Jung	R.O.C	male

(2) Board Independence:

According to the Company's Articles of Incorporation, the Board of Directors shall consist of 15 to 20 members. Directors are elected through a candidate nomination system in accordance with Article 192-1 of the Company Act, with shareholders electing board members from the list of nominated candidates. In compliance with the Securities and Exchange Act, the Company is required to appoint independent

directors within the aforementioned board seats. The number of independent directors shall be no less than two and not less than one-fifth of the total number of board seats.

As of the shareholders' meeting held on June 16, 2023, the Company has 18 board members (following one resignation), including four independent directors. All directors have submitted a written "Statement" or relevant documents to the Company affirming their and their immediate family members' independence from the Company. They are in compliance with Paragraphs 3 and 4 of Article 26-3 of the Securities and Exchange Act, which require (except with approval by the competent authority) that a majority of board members must not have a spousal or second-degree relative relationship with one another.

Furthermore, Article 15 of the Board Meeting Rules explicitly states that if a director or the legal entity they represent has an interest in any matter on the board meeting agenda, the director must explain the material aspects of such interest during the meeting. If such an interest may harm the Company's interests, the director must recuse themselves from both discussion and voting on that matter and may not vote on behalf of another director.

If a director's spouse, blood relatives within the second degree, or a company in a subordinate or controlling relationship with the director has an interest in the agenda item, it is deemed that the director has a personal interest in that item. Board resolutions involving directors who are prohibited from voting shall be handled in accordance with Article 206, Paragraph 4, which refers to Article 180, Paragraph 2 of the Company Act. This ensures that all discussions and resolutions of board matters are based on objective and independent judgment by the directors.

31 -

(2) Information on the General Manager, Deputy General, Associate Manager, and heads of all the Company divisions

Book closure date: April 13, 2026

Job title	Nationality or Record of Birth	Name	Gender	Elected (inauguration) Date	Shares		Shareholding of spouse and underage children		Shareholdings in the names of others		Work experience (academic degree)	Position(s) held concurrently in the Company and/or in any other company	Managers who are Spouses or Within Two Degrees of Kinship			Remarks
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
General Manager	R.O.C.	Lee, Hung-Te	Male	Jul.15, 2024	52,000	0.01	0	0	0	0	Computer Science / West Coast University	Chairman/ Hershey Environmental Technology Co., Ltd.	N/A	N/A	N/A	N/A
Deputy General Manager	R.O.C	Huang, Pin-Xian	Male	Jul.01, 2024	9,728	0.00	1,000	0.00	0	0	Institute of International Business / Asia University	Director/ United Performance Materials Corp.	N/A	N/A	N/A	N/A
Deputy General Manager	R.O.C	Lin, Yi-Feng	Male	Jan 01, 2021	377	0.00	0	0	0	0	Department of Chemical Engineering, Tamkang University	Chairman/ Sih-Wei Customs Brokerage Co., Ltd.	N/A	N/A	N/A	N/A
General Legal Counsel	R.O.C	Tseng, Hsiao-Chien	Female	Jan 01, 2019	226,814	0.05	0	0	0	0	Science and Technology Law Institute/ National Chiao Tung University School of Law	Supervisor/ Great Victory Chemical Industry (GVCI)	N/A	N/A	N/A	N/A
General Affairs Department / Senior Deputy Assistant General Manager	R.O.C	Huang, Jun-Zhe	Male	Jan.01, 2021	33,144	0.01	0	0	0	0	Department of Land Administration / National Chung Hsing University	Director/ Fusugar Industry Corp.	N/A	N/A	N/A	N/A
Factory / Deputy Assistant General Manager	R.O.C	Yu, Yu-Xin	Male	Jan.03, 2023	141	0.00	0	0	0	0	Department of Chemical Engineering, Tamkang University	N/A	N/A	N/A	N/A	N/A
Factory / Deputy Assistant General Manager	R.O.C	Tseng, Chih-Ching	Male	Jan.17, 2025	634	0.00	0	0	0	0	Institute of Chemistry, National Cheng Kung University	N/A	N/A	N/A	N/A	N/A
Accounting Supervisor	R.O.C	Chen, Wei-Chun	Male	Aug.01, 2017	31	0.00	0	0	0	0	Department of Accounting / Tamkang University	Supervisor/ Sih-Wei Customs Brokerage Co., Ltd.	N/A	N/A	N/A	N/A
Financial Supervisor	R.O.C	Lin, Li-Jen	Male	Aug 01, 2017	5,800	0.00	0	0	0	0	Department of Accounting / Tamkang University	Director/ Fusugar Industry Corp.	N/A	N/A	N/A	N/A

Note 1: Shareholding percentages of less than 0.01% are presented as 0.00%.

II. Remuneration paid to Directors, Supervisors, General Manager, and Deputy General Manager in the most recent year

Remuneration of Directors (Independent Directors included) (The name of directors should be disclosed in accordance with the respective remuneration bracket) Unit : NTD thousand

Job title	Name	Remuneration of Director							The sum of A, B, C, and D in proportion to Earnings (Note 10)	Remuneration in the capacity of an employee								The sum of A, B, C, D, E, F, and G to Earnings (Note 10)	Whether remuneration from any reinvested other than subsidiaries is received? (Note 11)
		Remuneration (A) (Note 2)		Pension (B)		Retained Earnings Distribution (C) (Note 3)		Professional practice (D) (Note 4)			Salaries, bonuses, and special subsidies (E) (Note 5)		Pension (F)		Employee bonus from earnings (G) (Note 6)
		the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company		Companies included in the financial statement (Note 7)		the Company		Companies included in the financial statement (Note 7)
														Cash dividend	Stock dividend	Cash dividend	Stock dividend	Stock dividend
Chairman	Huang, Shen-Tsai	-	-	-	-	2,813	2,813	540	540	0.57%	0.57%	12,570	12,570	-	-	-	-	-	2.70%	2.70%	None
Director	Huang, Sheng-Shun	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Kuo, Chen-Chih	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Lion Home Products (Taiwan) Co., Ltd. Representative /Ho, Hao	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Chen, De-Fong	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Shi, Jia-An	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Lien, Te-Shih	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Huang, Teh-Lun	-	-	-	-	935	935	180	180	0.19%	0.19%	6,305	6,305	108	108	386	-	386	-	1.35%	1.35%
Director	Formosa Chemicals & Fiber Corp Representative / Wu, Shin-Chang	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Hsin Chang Construction Corp. Representative / Kuo, Chih-Chun	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Chi-Tong Investment Co., Ltd Representative / Huang, Cheng-Feng	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Ever-Prosperous Multitechnologies Enterprise Ltd. Representative / Ko, Yen-Huei	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Hemao Venture Investment Co., Ltd. Representative / Chang, Li-Chiu	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Director	Lin, Chun-Cheng (Note 12)	-	-	-	-	-	-	29	29	0.00%	0.00%	455	455	17	17	14	-	14	-	0.09%	0.09%
Director	Lee, Wen-Ling	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Independent Director	Liao, Song-Yue	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None
Independent Director	Lin, Lai-Ti	-	-	-	-	935	935	180	180	0.19%	0.19%	-	-	-	-	-	-	-	0.19%	0.19%	None

Job title	Name	Remuneration of Director							The sum of A, B, C, and D in proportion to Earnings (Note 10)	Remuneration in the capacity of an employee	The sum of A, B, C, D, E, F, and G to Earnings (Note 10)	Whether remuneration from any reinvested other than subsidiaries is received? (Note 11)
		Remuneration (A) (Note 2)		Pension (B)		Retained Earnings Distribution (C) (Note 3)		Professional practice (D) (Note 4)
		the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company	Companies included in the financial statement (Note 7)	the Company		Companies included in the financial statement (Note 7)
																Cash dividend	Stock dividend	Cash dividend	Stock dividend	Companies included in the financial statement (Note 7)
Independent Director	Chen, Hung-Wen	—	—	—	—	935	935	180	180	0.19%	0.19%	—	—	—	—	—	—	—	0.19%	0.19%	None
Independent Director	Cho, Hsun-Jung	—	—	—	—	935	935	180	180	0.19%	0.19%	—	—	—	—	—	—	—	0.19%	0.19%	None
Please describe the remuneration policy, system, standards, and structure for independent directors, and clarify the relationship between the remuneration amount and factors such as responsibilities borne, risks, and time invested: The remuneration of directors is determined by the Board of Directors with reference to the standards of similar industries, listed company levels, and the company's profits for the fiscal year. This policy takes into account the responsibilities, risks, and time commitments involved in serving as a director, ensuring that the remuneration amount is closely related to these factors.Additional remuneration details beyond the above disclosure for the latest fiscal year, in the most recent fiscal year, directors did not receive any additional compensation for services provided (such as serving as a consultant for the parent company or its subsidiaries, which are not employees) beyond what is disclosed in the financial reports. None*Directors only receive standard director fees and travel expenses. No other forms of remuneration are provided.

Note 1: Names of directors should be separately disclosed (Institutional shareholders should disclose the names of the institutional shareholders and representatives separately). The amount of remuneration should be disclosed in summary. If a director concurrently serves as the President or Deputy General Manager, this Form and Form (3-1) or (3-2) must be filled out.
Note 2: It refers to the directors' compensation received for the recent year (including salaries of the directors, special responsibility allowance, severance pay, various bonuses, incentives, etc.).
Note 3: It refers to the remuneration of directors to be distributed in accordance with the proposal for distributing the recent year's earnings adopted at a meeting of the Board of Directors and such proposal has not yet been submitted to the Shareholders' Meeting for approval.
Note 4: It refers to the relevant expenses for business operations paid to directors for the recent year (including transportation allowance, special allowance, various allowances, and the provision of dormitory and vehicle, etc.). When a car, house, and other transportation or personal expense are provided, the nature and cost of the assets provided, the actual or estimated rental expense based on a fair market price, gas expense, and other payments should be disclosed. Further, if a chauffeur is assigned, please also describe the relevant compensation paid to such chauffeur in the Note. However, such an amount shall not be included in the remuneration.
Note 5: It refers to the salaries, special responsibility allowance, severance pay, various bonuses, incentives, transportation allowance, special allowance, and the provision of dormitory and vehicle received by the director(s) who concurrently serve(s) as an employee(s) (including President, Deputy General Manager, and other managerial officers and employees) in the recent year. When a house, car, and other transportation or personal expense is provided, the nature and cost of the assets provided, the actual or estimated rental expense based on a fair market price, gas expense, and other payments should be disclosed. Further, if a chauffeur is assigned, please also describe the relevant compensation paid to such chauffeur in the Note. However, such an amount shall not be included in the remuneration. In addition, the salary expense recognized in accordance with IFRS 2 "Share-based payment" includes the acquisition of employee stock warrant, employee restricted stock, and subscription of new shares from cash capitalization.
Note 6: It refers to the employee remuneration (including stock and cash) received by the directors who concurrently serve(s) as an employee(s) (including concurrent President, Deputy General Manager, and other managerial officers and employees) in the recent year. It is required to disclose the amount of employee remuneration to be distributed in accordance with the proposal for distributing the recent year's earnings adopted at a meeting the of Board of Directors and such proposal has not been submitted to the Shareholders' Meeting for approval. If such an amount is unable to be estimated, the amount can be determined in accordance with the actual distribution ratio for last year. Form 1-3 shall be filled out as well. For a company listed on the stock exchange or an OTC market, the stock remuneration shall be measured at fair value (i.e., the closing price on the balance sheet date) in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers; for a non-listed company, the stock remuneration shall be measured at the net value on the last date of the fiscal year that the earnings are generated.
Note 7: Disclose the total amount of remuneration paid to the directors by all the companies included in the consolidated financial statements (including the Company).
Note 8: Disclose the name of the directors in the respective range of total remuneration received from the Company.
Note 9: Disclose the name of the directors in the respective range of total remuneration received from all the companies included in the consolidated financial statements (including the Company).
Note 10: It refers to the net income of the recent year. After the adoption of IFRS.
Note 11: a. It is required to specify in this column the relevant remuneration amount the directors of the Company received from the reinvested companies other than the subsidiaries.
b. If the Company's director has received the relevant remuneration from the reinvested companies other than the subsidiaries, the received amount should be included in Column J. In addition, the column title shall be revised as "All reinvested companies."
c. Compensation shall mean the remuneration, reward, employee bonus, and expense for business operation paid to the Company's director(s) by the reinvested companies other than the subsidiaries and such directors concurrently serve(s) as director(s), supervisor(s), or managerial officer(s) of the reinvested companies.
Note 12: Director Lin Chun-Cheng resigned from his position on the Board of Directors on February 26, 2025.
* The concept of the "compensation" disclosed in this Form is different from the income defined under the Income Tax Law. Therefore, the purpose of this Form is for information disclosure not for taxation.

Remuneration of Supervisor: N/A, the Company has set up an audit committee to replace the supervisor on July 1, 2017.

3. Remuneration of General Manager, Deputy General Manager (Individual Disclosure of Names and Methods of Remuneration)

Unit: NTD thousand

Job title	Name	Salary (A) (Note 2)		Pension (B)		Salaries, bonuses, and special subsidies (C) (Note 3)		Employee bonus allocated from earnings (D) (Note 4)				The sum of A, B, C, and D in proportion to Earnings (Note 8)		Whether remuneration from any reinvested other than subsidiaries is received? (Note9)
		The Company-	Companies included in the financial statement (Note 5)	The Company	Companies included in the financial statement (Note 5)	The Company	Companies included in the financial statement (Note 5)	The company		Companies included in the financial statement (Note 5)		The company	Companies included in the financial statement (Note 5)
								Cash	Stock	Cash	Stock
General Manager	Lee, Hung-Te	3,523	3,523	108	108	5,154	5,154	499	—	499	—	1.58%	1.58%	None
Deputy General Manager	Lin, Yi-Feng	2,608	2,608	108	108	3,772	3,772	391	—	391	—	1.17%	1.17%	None
Special Assistant to the Chairman (Concurrent)	Huang, Teh-Lun	2,586	2,586	108	108	4,901	4,901	386	—	386	—	1.22%	1.22%	None
Deputy General Manager	Huang, Pin-Xian	1,756	1,871	108	108	2,980	2,980	262	—	262	—	0.87%	0.89%	None

It should include the information disclosure of the General Manager, Deputy General Manager, Associate Manager, department heads, and branch officers; also, the position equivalent to General Manager, Deputy General Manager, or Associate Manager.
Note 1: Names of General Manager and Deputy General Manager should be separately disclosed. The amount of remunerations should be disclosed in summary. If a director concurrently serves as the General Manager or Deputy General Manager, this Form and Form (1-1) or (1-2) must be filled out.
Note 2: It refers to the General Manager and Deputy General Manager's salary, special responsibility allowance, and severance pay.
Note 3: It refers to the bonuses, incentives, transportation allowance, special allowance, the provision of dormitory and vehicle, and other compensations received by the General Manager and Deputy General Manager in the recent year. When a house, car, and other transportation or personal expense is provided, the nature and cost of the assets provided, the actual or estimated rental expense based on a fair market price, gas expense, and other payments should be disclosed. Further, if a chauffeur is assigned, please also describe the relevant compensation paid to such chauffeur in the Note. However, such an amount shall not be included in the remuneration. In addition, the salary expense recognized in accordance with IFRS 2 "Share-based payment" includes the acquisition of employee stock warrant, employee restricted stock, and subscription of new shares from cash capitalization.
Note 4: It refers to the employee remuneration (including stock and cash) received by the General Manager and Deputy General Manager that is distributed in accordance with the proposal for distributing the recent year's earnings adopted at a meeting of the Board of Directors and such proposal has not been submitted to the Shareholders' Meeting for approval. If such an amount is unable to be estimated, the amount can be determined in accordance with the actual distribution ratio for last year. Form 1-3 shall be filled out as well. For a company listed on the stock exchange or an OTC market, the stock remuneration shall be measured at fair value (i.e., the closing price on the balance sheet date) in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers; for a non-listed company, the stock remuneration shall be measured at the net value on the last date of the fiscal year that the earnings are generated. It refers to the net income of the recent year. After the adoption of IFRS, it refers to the net income in the individual or independent financial statements of the recent year.
Note 5: Disclose the total amount of remuneration paid to the General Manager and Deputy General Manager by all the companies (including the Company) included in the consolidated financial statements.
Note 6: Disclose the name of the General Manager and Deputy General Manager in the respective range of total remuneration received from all the Company.
Note 7: Disclose the total amount of remuneration paid to the General Manager and Deputy General Manager by all the companies (including the Company) included in the consolidated financial statements. Disclose the name of the General Manager and Deputy General Manager in the respective range of total remuneration received.
Note 8: It refers to the net income of the recent year. After the adoption of IFRS, it refers to the net income in the individual or independent financial statements of the recent year.
Note 9: a. It is required to specify in this column the relevant remuneration amount the General Manager and Deputy General Manager of the Company received from the reinvested companies other than the subsidiaries.
b. If the General Manager and Deputy General Manager have received the relevant remuneration from the reinvested companies other than the subsidiaries, the received amount should be included in Column E. In addition, the column title shall be revised as "All reinvested companies."
c. Remuneration shall mean the compensation, reward, employee bonus, and expense for business operation paid to the Company's the General Manager and Deputy General Manager by the reinvested companies other than the subsidiaries, and such the General Manager and Deputy General Manager concurrently serve(s) as director(s), supervisor(s), or managerial officer(s) of the reinvested companies.
The concept of the "compensation" disclosed in this Form is different from the income defined under the Income Tax Law. Therefore, the purpose of this Form is for information disclosure not for taxation.

Compensation of the top five highest paid executives in listed and over-the-counter companies (individual disclosure of names and methods of compensation) (Note 1)

Unit: NTD thousand

Job title	Name	Salary (A) (Note 2)		Pension (B)		Salaries, bonuses, and special subsidies (C) (Note 3)		Employee bonus allocated from earnings (D) (Note 4)				The sum of A, B, C, and D in proportion to Earnings (Note 8)		Whether remuneration from any reinvested other than subsidiaries is received? (Note9)
		The Company-	Companies included in the financial statement (Note 5)	The Company	Companies included in the financial statement (Note 5)	The Company	Companies included in the financial statement (Note 5)	The company		Companies included in the financial statement (Note 5)		The Company	Companies included in the financial statement (Note 5)
								Cash	Stock	Cash	Stock
General Manager	Lee, Hung-Te	3,523	3,523	108	108	5,154	5,154	499	—	499	—	1.58%	1.58%	None
Deputy General Manager	Lin, Yi-Feng	2,608	2,608	108	108	3,772	3,772	391	—	391	—	1.17%	1.17%	None
Special Assistant to the Chairman (Concurrent)	Huang, Teh-Lun	2,586	2,586	108	108	4,901	4,901	386	—	386	—	1.22%	1.22%	None
Deputy General Manager	Huang, Pin-Xian	1,756	1,871	108	108	2,980	2,980	262	—	262	—	0.87%	0.89%	None
Director of Research Institute	Tseng, Chih-Ching	2,061	2,186	103	108	2,037	2,053	263	—	263	—	0.76%	0.78%	None

Regardless of the job title, positions equivalent to General Manager or Deputy General Manager (such as President, CEO, Director, etc.) should all be disclosed.
Note 1: The term "top five highest paid executives" refers to the company's managers. The identification standard for relevant managers is based on the directives of the Securities and Futures Commission of the Ministry of Finance dated March 27, 2003, under document number 0920001301, which specifies the applicable scope of "managers." The calculation and identification principle for the "top five highest paid" is based on the total sum of salaries, retirement pensions, bonuses, special expenses, and employee compensation amounts received from all companies within the consolidated financial statements (i.e., the total amount of items A+B+C+D), and these are ranked to determine the top five. If a director also serves as one of the aforementioned managers, this should be recorded in this table and the above table (1-1).
Note 2: This refers to the filling in of the salaries, position allowances, and severance pay of the top five highest paid executives for the most recent fiscal year.
Note 3: This involves the filling in of various bonuses, incentive payments, travel expenses, special expenses, various allowances, provisions of dormitories, cars, and other physical items, and other remuneration amounts for the top five highest paid executives for the most recent fiscal year. If housing, cars, and other transportation vehicles or exclusive personal expenditures are provided, the nature and cost of the assets provided, the actual or fair market rent, fuel costs, and other benefits should be disclosed. If a driver is provided, the company's compensation for that driver should be noted, but not included in the compensation. Salary expenses recognized under IFRS 2 "Share-based Payment," including obtaining employee stock options, restricted employee rights new shares, and participation in cash capital increases to subscribe for shares, should also be included in compensation.
Note 4: This refers to the filling in of the employee compensation amounts (including stocks and cash) of the top five highest paid executives approved by the board of directors for the most recent fiscal year. If an estimate is not possible, calculate the proposed distribution amount for this year based on the actual distribution amount ratio from last year, and also fill in the corresponding schedule.
Note 5: The total amount of compensation paid to the top five highest paid executives of the company by all companies (including the company itself) within the consolidated report should be disclosed.
Note 6: Net income after taxes refers to the net income after taxes of the individual or individual financial statements for the most recent fiscal year.
Note 7: a. This column should clearly list the compensation amounts received by the top five highest paid executives from investments in businesses other than subsidiaries or from the parent company (if none, please state "none").
b. Compensation refers to the remuneration, employee, director, and supervisor compensation, and business execution fees received by the top five highest paid executives of the company who serve as directors, supervisors, or managers in businesses other than subsidiaries or the parent company.
The concept of the "compensation" disclosed in this Form is different from the income defined under the Income Tax Law. Therefore, the purpose of this Form is for information disclosure not for taxation.

Employee Bonus Amount Paid to Managerial Officers

Manager Officer	Job title (Note 1)	Name (Note 1)	Stock	Cash	Total	Proportion to Earnings After Tax (%)
	General Manager	Lee, Hung-Te	—	2,845	2,845	0.48%
	Deputy General Manager	Lin, Yi-Feng
Huang, Pin-Xian
	Deputy Assistant General Manager/ Senior Deputy Assistant General Manager/ Special Assistant to the Chairman	Tseng, Chih-Ching
Tseng, Hsiao-Chien
Huang, Jun-Zhe
Yu, Yu-Xin
Huang, Teh-Lun
	Accounting Supervisor	Chen, Wei-Chun
(Senior Deputy Assistant General Manager)
	Financial Supervisor	Lin, Li-Jen
(Senior Deputy Assistant General Manager)

Note 1: Names and job titles of each individual should be separately disclosed. The amount of remunerations can be disclosed in summary.
Note 2: It refers to the employee remuneration (including stock and cash) received by the managerial officers that are distributed in accordance with the proposal for distributing the recent year’s earnings adopted at a meeting of the Board of Directors and such proposal has not been submitted to the Shareholders’ Meeting for approval. If such an amount is unable to be estimated, the amount can be determined in accordance with the actual distribution ratio for last year. It refers to the net income of the recent year. After the adoption of IFRS, it refers to the net income in the individual or independent financial statements of the recent year.
Note 3: The scope of application for managers is defined in accordance with the Tai.Chai. Chen (III) No. 0920001301 Letter dated March 27, 2003, by the SEC as follows:
(1) General Manager and the equals
(2) Deputy General Manager and the equals
(3) Deputy Assistant General Manager and the equals
(4) General Manager of Finance Department
(5) General Manager of Accounting Department
(6) Managerial officers and the individuals authorized to sign
Note 4: If Directors, General Manager, and Deputy General Manager have collected employee remuneration (including stock and cash), in addition to filling out Form 1-2, please fill out this Form too.

Specify and compare the remuneration of Directors, Manager and Deputy General Manager of the Company in proportion to the earnings after tax from the Company and companies included in the consolidated financial statements over the last two years, and specify the policies, standards, combinations, and procedures of decision-making for remuneration and their correlation with business performance and future risk:
The ratio of the total remuneration paid by the Company to Directors, General Manager, and Deputy General Manager / Net income (%):

Title	2025 Remuneration / standalone net income ratio (%)	2024 Remuneration / standalone net income ratio (%)
Directors	7.17	7.07
Supervisors	—	—
Manager and Deputy General Manager	4.85	4.39

The remuneration policy of the directors and supervisors of the company is clearly stipulated in the Company's Articles of association, and approved by the shareholders meeting and the remuneration committee, then sent to the board of directors for resolution; the payment of the remuneration of the general manager and deputy general manager is determined by the remuneration committee. After deliberation, it is sent to the board of directors for resolution; the remuneration is paid in accordance with the regulations of the articles of association, so the proportion has not changed much, and it is related to operating performance.
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III. The state of the Implementation of Corporate Governance

I. Operations of Board of Directors

The 18th Board of Directors totally held (A) 5 meetings in 2025.

The attendance records for Directors are as follows:

Job title	Name	Actual attendance B	Attendance by proxy	Actual attendance rate (%) (B/A)
Chairman	Shin Shing Chemical Corp. Representative / Huang, Shen-Tsai	5	0	100%
Vice Chairman	Huang, Sheng-Shun	5	0	100%
Director	Formosa Chemicals & Fiber Corp. Representative / Wu, Shin-Chang	3	0	60%
Director	Huang, Teh-Lun	3	0	60%
Director	Lion Home Products (Taiwan) Co., Ltd. Representative / Ho, Hao	4	0	80%
Director	Kuo, Chen-Chih	4	0	80%
Director	Hsin Chang Construction Corp./ Kuo, Chih-Chun	5	0	100%
Director	Chen, De-Fong	5	0	100%
Director	Hemao Venture Investment Co., Ltd. Representative / Chang, Li-Chiu	0	4	0%
Director	Lien, Te-Shih	5	0	100%
Director	Lee, Wen-Ling	5	0	100%
Director	Chi-Tong Investment Co., Ltd. Representative / Huang, Cheng-Feng	5	0	100%
Director	Shi, Jia-An	5	0	100%
Director	Ever-Prosperous Multitechnologies Enterprise Ltd Representative / Ko, Yen-Huei	5	0	100%
Independent Director	Liao, Song-Yue	4	0	80%
Independent Director	Lin, Lai-Ti	4	1	80%
Independent Director	Cho, Hsun-Jung	5	0	100%
Independent Director	Chen, Hung-Wen	5	0	100%

Other items to be specified:

Should one of the following occur, the meeting date, period, content of the resolution, opinions of all Independent Directors, and the Company's handling of the opinions of the Independent Directors shall be clearly stated:

(1) All the listed items in Article 14-3 of the Securities and Exchange Act: The Company has established an Audit Committee and is therefore not subject to the provisions of Article 14-3 of the Securities and Exchange Act. For related information, please refer to the section on Audit Committee operations in this Annual Report.

(2) In addition to the aforementioned, the items in board resolutions regarding which Independent Directors have voiced opposing or qualified opinions on the record or in writing: None.

In instances where a Director recuses themselves due to a conflict of interest, the minutes shall clearly state the Director's name, contents of the motion and resolution thereof, reason for such circumvention and the voting status:

(1) March 13, 2025: Regarding the proposal to release the Company's directors and their representatives from non-competition restrictions, Director Chang, Li-Chiu was identified as a stakeholder. Director Chang was absent from and did not participate in the discussion or voting of this proposal. The remaining directors in attendance approved the proposal without objection.

(2) August 11, 2025: Regarding the proposal for the Company to acquire right-of-use assets by leasing real estate from a related party, Chairman Huang Shen-Tsai was identified as a stakeholder. Chairman Huang recused himself and did not participate in the discussion or voting of this proposal. The remaining directors in attendance approved the proposal without objection.

39 -

Listed and OTC-listed companies shall disclose information regarding the assessment cycle and period, scope, method, and content of the board's self-evaluation (or peer evaluation). For details, please refer to item (2) Implementation of Board Performance Evaluation.
Measures undertaken during the current year and past year (including the establishment of the Audit Committee, improvement of info transparency, etc.) in order to strengthen the functions of the Board of Directors and assessment of such implementation:

(1) The Company has purchased liability insurance for all directors to carry out the scope of business legally liable for compensation.

(2) The Company has formulated the "Standard Operating Procedures for Handling Directors' Requests" and responds appropriately and promptly to directors' requests.

(3) The Company has formulated the "Board Performance Evaluation Measures" to implement corporate governance and enhance the operational effectiveness of the board of directors.

(4) The Company established the Corporate Governance Officer position in 2021 to protect the rights and interests of shareholders and strengthen the functions of the board of directors, assist the operation of the board of directors, and implement corporate governance and legal compliance.

2. Evaluation implementation status of the Board of Directors

Assessment Cycle	Assessment Period	Assessment Scope	Appraisal content
Execute once a year	January 01,2025 – December 31, 2025	1. Board performance evaluation
2. Individual director performance evaluation
3. Functional committee performance evaluation	1. Internal Self-Evaluation of the Board of Directors
2. Self-Evaluation by Individual Board Members
3. Self-Evaluation by Members of Functional Committees	1. Aspects of self-assessment for Board of Directors :
			Evaluation Aspects	Evaluation Items	Evaluation Results
			A Participation in the operation of the Company	12 Items	4.49
			B. Improvement of the quality of the Board of Directors' decision making	12 Items	4.60
			C. Composition and structure of Board of Directors	7 Items	4.63
			D. Election of directors and continuing education	7 Items	4.58
			E. Internal control	7 Items	4.61
			Total Number of Evaluation Items / Overall Average Score of Evaluation Results	45 Items	4.58
			2. Aspects of self-assessment for Board of Directors :
			Evaluation Aspects	Evaluation Items	Evaluation Results
			A Alignment of the goals and mission of the Company	3 Items	4.78
			B. Awareness of the duties of a director	3 Items	4.78
			C. Participation in the operation of the Company	8 Items	4.52
			D. Management of internal relationship and communication	3 Items	4.54
			E. The director's professionalism and continuing education;	3 Items	4.65
			F. Internal control	3 Items	4.76
			Total Number of Evaluation Items / Overall Average Score of Evaluation Results	23 Items	4.67
			3. All aspects of self-assessment for functional committee:
			Evaluation Aspects	Evaluation Items	Evaluation Results
			A Participation in the operation of the Company	4 Items	4.73
			B. Awareness of functional committee's functions	5 Items	4.58
			C. Improvement of the quality of the functional committee's decision making	7 Items	4.72
			D. Composition of functional committee and election of members	3 Items	4.75
			E. Internal control	3 Items	4.75
			Total Number of Evaluation Items / Overall Average Score of Evaluation Results	22 Items	4.71

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3. Participation of the audit committee in the operation of the board of directors

The authority and annual tasks of the audit committee

(1) Establish or amend the internal control system in accordance with Article 14-1 of the Securities and Exchange Act.
(2) Evaluation of the effectiveness of the internal control system.
(3) Stipulate or amend based on Article 36-1 of the Securities and Exchange Act the procedures for major financial activities such as acquisition or disposal of assets, engage in the transaction of derivatives, fund loaning to other third parties, or provide endorsements or guarantees for other third parties.
(4) Matters involving the director’s interests.
(5) Transactions of major assets or derivatives.
(6) Major fund loaning, endorsements, or guarantees.
(7) Offering, issuing, or private placement of equity securities.
(8) Appointment, dismissal, or remuneration of CPAs.
(9) Appointment and dismissal of heads of financial, accounting, or internal audit units.
(10) The annual financial report signed or stamped by the chairman, the manager, and the head of the accounting unit, and the Q2 financial report subject to verification by the CPA.
(11) Other major matters specified by the Company or the competent authority.

The operation of the Audit Committee

There are 4 members of the audit committee of the company, and the 3rd session of the audit committee was appointed by the board of directors on June 28, 2023.
The term of office of the current members: July 1, 2023 to June 30, 2026

The Audit Committee of 2025 had convened 4 times (A), and the following table indicates the attendance of Independent Directors.

Title	Name	Attendance in Person (B)	Attendance by Proxy	Ratio of Attendance in Person (%) (B/A)
Independent Director (Convener)	Chen, Hung-Wen	4	0	100%
Independent Director	Cho, Hsun-Jung	4	0	100%
Independent Director	Liao, Song-Yue	4	0	100%
Independent Director	Lin, Lai-Ti	3	1	75%

Other matters required to be recorded:

Please clearly specify the dates, sessions, proposals, the resolutions, and the Company’s comments to such resolutions of any of the meetings of the audit committee which has any of the following circumstances:

(1) Matters specified in Article 14-5 of the Securities and Exchange Act:

Dates and Sessions of the Meetings	Proposals and Resolutions	Matter specified in Article 14-5 of the Securities and Exchange Act	Matter that has not been approved by the audit committee, but has been adopted with the approval of two-thirds or more of all board directors without having been passed by the audit committee.
Mar. 13, 2025
Session 8 of the 3^{rd} Term	1. Approval of the Company’s 2024 Business Report and Financial Statements	V	N/A
	2. Approval of the Distribution of Earnings for the Second Half of 2024	V	N/A
	3. Approval of the Amendment to the Company’s "Articles of Incorporation"	V	N/A
	4. Approval of the removal of non-compete restrictions for the Company’s directors and their representatives	V	N/A

Dates and Sessions of the Meetings	Proposals and Resolutions	Matter specified in Article 14-5 of the Securities and Exchange Act	Matter that has not been approved by the audit committee, but has been adopted with the approval of two-thirds or more of all board directors without having been passed by the audit committee.
	5. Approval of the Company's 2024 Internal Control System Statement	V	N/A
	Resolution of the audit committee: The approval by all audit committee members present was made.
	Comments of the Company’s board of directors to the resolution of the audit committee: The approval by all directors present was made.
May 12, 2025 Session 9 of the 3^{rd} Term	1. Approval of the Consolidated Financial Statements for the 1st Quarter of FY2025	V	N/A
	2. Approved the establishment of a pre-approval policy for the provision of non-assurance services by the Company's certified public accounting firms	V	N/A
	Resolution of the audit committee: The approval by all audit committee members present was made.
	Comments of the Company’s board of directors to the resolution of the audit committee: The approval by all directors present was made.
Aug. 11, 2025 Session 10 of the 3^{rd} Term	1. Approval of the Consolidated Financial Statements for the 2nd Quarter of FY2025	V	N/A
	2. Approval of the distribution of the first half-yearly surplus for FY2025	V	N/A
	3. Approval of the Investment in J & V Energy Technology Co., Ltd. and the Transaction Limit for Acquisition or Disposal of Assets	V	N/A
	4. Approval of the Company's Lease of Real Estate from a Related Party to Acquire Right-of-Use Assets	V	N/A
	Resolution of the audit committee: The approval by all audit committee members present was made.
	Comments of the Company’s board of directors to the resolution of the audit committee: The approval by all directors present was made.
Nov. 12, 2025 Session 11 of the 3^{rd} Term	1. Approval of the Consolidated Financial Statements for the 3rd Quarter of FY2025	V	N/A
	2. Approval of the change of CPAs due to internal rotation at Deloitte & Touche	V	N/A
	3. Approval of the amendments to the Company's Organizational Chart	V	N/A
	4. Approval of the amendments to the Preamble of the Company’s Internal Control System	V	N/A
	5. Approval of the amendments to the Payroll Cycle within the Company’s Internal Control System	V	N/A
	6. Approval of the amendments to the Company’s Sustainable Development Best Practice Principles	V	N/A
	7. Approval of the establishment of the Company’s Information Security Management Plan	V	N/A
	8. Approval of the Company’s Internal Audit Plan for the Year 2026	V	N/A
	Resolution of the audit committee: The approval by all audit committee members present was made.
	Comments of the Company’s board of directors to the resolution of the audit committee: The approval by all directors present was made.

(2) Except for the above-mentioned, is there any matter that has not been approved by the audit committee, but has been adopted with the approval of two-thirds or more of all board directors without having been passed by the audit committee. None.

For any of the proposals that any of the independent directors are required to make avoidance due to conflict of interests, please clearly specify the names of the directors, the content of the proposals, the reasons for avoidance due to conflict of interests, and the results of voting for such proposals: No such situation.
The status of communication between independent directors and the head of internal audit and accountants (please include the major matters, methods, and results of the communication on the Company's financial and business operation status, etc.)

(1) Communication between independent directors and internal audit supervisor:

Date	Mode of Communication	Matter of Communication	Results
Nov. 12, 2025	Board of Directors	Report on the actual implementation of the audit plan from June to August 2025	No objection
		Approval of the amendments to the Preamble and the Payroll Cycle of the Internal Control System	Approve
		The 2026 annual audit program	Approve
Nov. 12, 2025	Audit committee	Approval of the amendments to the Preamble and the Payroll Cycle of the Internal Control System	Submit to the Board after approval
		The 2026 annual audit program	Submit to the Board after approval
Aug. 11, 2025	Board of Directors	Report on the actual implementation of the audit plan from March to May 2025	No objection
May 12, 2025	Board of Directors	Report on the actual implementation of the audit plan from January to February 2025	No objection
Mar. 13, 2025	Board of Directors	Report on the actual implementation of the audit plan from November to December 2024	No objection
		The 2024 internal control statement case	Approve
	Audit committee	The 2024 internal control statement case.	Submit to the Board after approval
Jan. 19, 2025	Board of Directors	Report on the actual implementation of the audit plan from September to October 2024	No objection

(2) Communication between independent directors and CPAs:

Date	Mode of Communication	Object of Communication
Nov. 12, 2025	forum	Independent Directors
CPAs
Internal audit supervisor and officers	1. Communication with Corporate Governance Units prior to the 2025 Annual Audit
2. Report on the actual implementation of the 2025 annual audit program
3. Annual Professional Training for Internal Auditors	No comments at this meeting
Mar. 13, 2025	forum	Independent Directors
CPAs
Internal audit supervisor and officers	4. Communication with Corporate Governance Units prior to the 2024 Annual Audit
5. Report on the actual implementation of the 2024 annual audit program
6. Annual Professional Training for Internal Auditors	No comments at this meeting

Difference between the practices of the Company and Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons

Items	Implementation			Difference between the practices of the Company and Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Y	N	Summary
1. Does the Company stipulate and disclose its guidelines for corporate governance in accordance with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies?	V		The Company has stipulated and disclosed its guidelines for corporate governance in accordance with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and disclosed such guidelines on its official site.	No significant difference
2. The Ownership Structure and Shareholders’ Equity
(1) Does the Company stipulate internal operating procedures to handle shareholders’ suggestions, doubts, disputes, and litigation, and implement the relevant process in accordance with the procedures?
(2) Does the company establish a list indicating the major shareholders who actually control the Company and the final controllers of such major shareholders?
(3) Does the company establish and implement risk control and firewall mechanisms between the affiliates?
(4) Does the Company stipulate internal regulations to prohibit the insiders from using undisclosed information to purchase and sell securities?	V	V	The Company has designated dedicated staff such as spokespersons and acting spokespersons to handle shareholders’ suggestions, doubts, disputes, and litigation, but has not stipulated the internal operating procedures.
The Company has a list indicating the major shareholders who actually control the Company and the final controllers of such major shareholders.
The guidelines governing the business and financial transactions between the Company and its affiliates have been stipulated, which can effectively implement risk control and firewall mechanisms.
The procedures for the processing of internal major information have been stipulated.	The internal operating procedures are to be discussed
No significant difference
No significant difference
No significant difference
3. The Composition and Responsibilities of the Board of Directors
(1) Does the board of directors’ form and implement a diversified policy on the composition of its members?	V		The Company has, based on Article 20 of its guidelines for corporate governance, enhanced the requirements to the responsibilities of the board of directors, and the composition of the board of directors shall be diversified as required.	No significant difference

44 -

Items	Implementation			Difference between the practices of the Company and Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Y	N	Summary
(2) In addition to the remuneration committee and the audit committee established in accordance with the laws and regulations, does the Company voluntarily establish other various functional committees?		V	To enhance decision-making functions and strengthen management mechanisms, the Company has, in accordance with the law, established a Compensation Committee, an Audit Committee, and a Sustainability Committee. Additional functional committees may be established in the future based on actual operational needs.	No significant difference
(3) Does the Company stipulate the guidelines for evaluating the performance of the board, conduct annual and regular performance evaluations, and report the results of performance evaluations to the board of directors, and use such results as a reference for individual director’s remuneration and a nomination for re-election?	V		The Company has stipulated guidelines for evaluation of the performance of the board, conducted annual and regular performance evaluations, and reported the results of performance evaluations to the board of directors, and used such results as a reference for individual director’s remuneration and a nomination for re-election.	No significant difference
(4) Does the Company regularly assess the independence of certified public accountants (CPA)? (Note 1)	V		The Audit Committee of the Company evaluates the independence and suitability of its certified public accountants annually. In addition to requesting the certified public accountants to provide a "Statement of Transcendent Independence" and Audit Quality Indicators (AQIs), the Audit Committee evaluates the certified public accountants in accordance with the criteria set forth in Note 1 and the 13 AQIs. After confirming that the accountant and the Company have no financial interest or business relationship other than the fees for visa and tax cases, and that the members of the accountant's family do not violate the independence requirements, as well as referring to the information of the AQIs, we confirm that the accountant and the firm's audit experience and training hours are better than the average of the industry, and that we will continue to improve the quality of	No significant difference

45 -

Items	Implementation			Difference between the practices of the Company and Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Y	N	Summary
			our audit by introducing the digital audit tool in the last three years. The results of the latest annual assessment were discussed and approved by the Audit Committee on March 11, 2026, and were submitted to the Board of Directors on March 11, 2026, for approval of the assessment of the independence and suitability of the accountants.
4. Does the listed Company have a suitable and appropriate number of corporate governance staff and designates a corporate governance leader to be responsible for corporate governance related matters (including but not limited to providing information required by directors and supervisors to perform business, assisting directors and supervisors to comply with relevant laws and regulations, handle matters related to meetings of the board of directors and shareholders in accordance with the laws and regulations, prepare minutes of the meetings of the board of directors and shareholders, etc.?	V		Corporate governance-related matters are handled by the Chief Corporate Governance Officer and staff members of the Stock Affairs Department.	No significant difference
5. Does the Company establish communication channels with stakeholders (including but not limited to shareholders, employees, customers, and suppliers, etc.), provide a specific area for stakeholders on its official site, and appropriately respond to the CSR issues of stakeholders’ concerns?	V		The Company has set up a specific area for stakeholders on its official website and appropriately responded to the CSR issues of stakeholders’ concerns.	No significant difference
6. Does the Company appoint a professional stock agency to handle the affairs of the shareholders meeting?	V		Since January 1,2024, the Company's stock affairs have been managed by the Stock Affairs Agency Department of Hua Nan Securities Co., Ltd.	No significant difference
7. Information Disclosure (1) Does the company set up a website to disclose financial business operation and corporate governance information?	V		The Company has disclosed financial business operation and corporate governance information on its official site.	No significant difference

46 -

Items	Implementation			Difference between the practices of the Company and Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Y	N	Summary
(2) Does the Company adopt other information disclosure methods (such as setting up an English version website, appointing a designated staff to be responsible for the collection and disclosure of company information, implementing the spokesperson system, disclosing the process of the institutional investor conference on the company’s official site, etc.)?	V		The Company has designated staff who are responsible for the collection and disclosure of company information, implemented the spokesperson system, and disclosed the spokesperson’s contact information on its official site (http://www.fucc.com.tw).	Considering the Setup of an English-Language Website
(3) Does the Company disclose and submit its annual financial report within two months after the end of each fiscal year, and disclose and submit the financial reports for the first, second, and third quarters and the business operating conditions of each month prior to the prescribed deadline?		V	The Company discloses and submits its annual financial report and the monthly business operating conditions prior to the deadline in accordance with the regulations. However, the annual financial report has not been disclosed 2 months prior to the deadline.	To be discussed.
8. Does the Company have other supporting information that allows further understanding to the corporate governance operation (including but not limited to employee rights, employee care, investor relations, supplier relations, the rights of stakeholders, the education and training for directors and supervisors, implementation status of risk management policies and risk measurement standards, implementation status of customer policies, the casualty insurance provided by the company for directors and supervisors, etc.)?	V		1. Please refer to the “V. Summary of Business Performance” of this annual report for the system and measures adopted by the Company for employee rights, employee care, investor relations, supplier relations, and the rights of stakeholders.
2. The directors of the Company actively participate in the refresher courses organized by relevant units based on their actual needs.
3. The Company's internal control, risk management, and other systems and related management regulations have been approved by the board of directors, which shall be able to avoid investment in risky businesses, and the Company purchases various insurances to make up for potential losses (generated from accidents) of itself, its employees, and any third parties.
4. The Company has purchased casualty insurance of USD 3 million for its directors.	No significant difference

47 -

Items	Implementation
	Y	N	Summary
9. Please specify the improvement to the results of the corporate governance evaluation conducted by the Corporate Governance Center of TWSE in the most recent fiscal year and the priorities and measures for matters that have not yet been improved.
• The Improvements Achieved:
On September 22, 2025, the Company approved the Group Intellectual Property Management Plan (the full text is available on the Company’s website: https://www.fucc.com.tw/h/DataDetail?key=sxgnr&cont=502188). This initiative establishes a structured system for the acquisition, management, and maintenance of intellectual property rights (IPR) while strengthening internal controls to mitigate risks of infringement and trade secret leakage.

Aligned with the Company’s operational strategy, the plan integrates IP management with R&D, product positioning, and market expansion to protect core technologies, enhance corporate value, and improve disclosure transparency. Furthermore, the Company has incorporated IP management into its corporate governance oversight. The implementation status is reported to the Board of Directors at least once annually; the 2025 report was presented during the 11th meeting of the 3rd Board of Directors on November 12, 2025, fulfilling the Board’s supervisory duties.

2025 Implementation Status of the Intellectual Property Management Plan
I. Internal Regulation Management
On September 22, 2025, the "FUCC Group Intellectual Property Management Plan" was officially approved, announced, and implemented as an internal regulatory framework.

II. Trademark and Patent Management
The Group maintains continuous oversight of trademark and patent applications and potential third-party claims. Respective departments maintain detailed registries to manage these assets, filing new applications based on business needs and renewing trademarks nearing expiration. In 2025, one trademark dispute involving Union Chemical (UCC) in China was identified, and the Company has formally filed a defense.

III. Copyright Management
For the 2024 Sustainability Report published in 2025, the Company engaged an external graphic design firm. The contract stipulates that the Company shall hold the copyright, and the service provider has signed an anti-infringement warranty.

IV. Confidentiality and Employee Conduct Management
Employment Contracts: All employees have signed employment contracts containing clauses on confidentiality and the obligation to comply with intellectual property laws.
Employee Handbook: Each employee is provided with a handbook including "Work Rules" and a "Code of Ethical Conduct," both of which mandate confidentiality and legal compliance.

V. Training and Education
Online Training: In 2025, the Company introduced the 104 online IP training course, "Dispelling Myths: A Quick Guide to Intellectual Property Rights."
New Hire & Compliance Training: Confidentiality training is mandatory for all new hires to ensure understanding of non-disclosure obligations. Regular compliance training is also conducted for existing staff.

VI. Group Intellectual Property Inventory and Achievements
Trademarks: As of September 10, 2025, the Company and its subsidiaries held a total of 219 valid domestic and | | | | |

48 -

49 -

Items	Implementation
	Y	N	Summary
international trademarks, with no pending applications.
Patents: As of September 10, 2025, the Company and its subsidiaries have been granted a total of 12 domestic and international patents. Other proprietary technologies are protected as trade secrets. No new patent applications were filed in 2025. • Priority Enhancements
Risk management is supervised by a Board-level functional committee. The Company has established risk management policies and procedures approved by the Board of Directors, which disclose the risk management organizational structure, processes, and implementation status. Furthermore, reports are submitted to the Board of Directors at least once a year.

Note 1: Criteria for assessing the independence of accountants

Assessment Items	Assessment Results	Compliance with Independence
Whether the accountant has a direct or material indirect financial interest in the Company	No	Yes
Whether the accountant is in a financing or guarantee relationship with the Company or a director of the Company	No	Yes
Whether the accountant has a close business relationship with the Company and potential employment relationship.	No	Yes
Whether the accountants and members of their audit team are currently, or have been in the last two years, serving as directors or managers of the Company or in positions of significant influence over the audit.	No	Yes
Whether the accountants have provided any non-audit service items to the Company that could directly affect the audit process	No	Yes
Whether the accountant has intermediated in the Company's stock or other securities issued by the Company.	No	Yes
Whether the accountant has acted as the Company's defender or represented the Company to coordinate conflicts with other third parties.	No	Yes
Whether the accountant is related to any of the Company's directors, managers, or other persons having significant influence on the audit.	No	Yes

5. Establishment, functions, and operations of the Remuneration Committee:

(1) Members of the Remuneration Committee

Status	Name	Professional qualifications and experience	Independence criteria	Number of other public companies where the person holds the title as Remuneration Committee member
Convener and Independent Director	Chen, Hung-Wen	Over five years of experience in areas of commerce, law, finance or related corporate business.	(1) Not employed by the Company or any of the Company’s affiliates.
(2) Not a Director or Supervisor of the Company or any of the Company’s affiliates. This restriction does not apply to Independent Directors of subsidiaries in which the Company or its parent company directly or indirectly holds over 50% of the shareholder voting rights.
(3) Not holding over 1% of company shares or being a top 10 natural person shareholder in one’s own name, held by a spouse or underage child, or held by nominee agreement.
(4) Not a spouse, kin at the second degree under the Civil Code, or the lineal blood relatives within the third degree under the Civil Code as specified in (1) through (3).
(5) Not a Director, Supervisor or employee of a corporate shareholder who holds more than 5% of the outstanding shares issued by the Company, or a Director, Supervisor or employee of a corporate shareholder who is among the top 5 shareholders.
(6) Not a Director, Supervisor, Manager or shareholder holding more than 5% of the outstanding shares of specific company or institution in business or financial relation with the Company.
(7) Not a professional, owner, partner, Director, Supervisor, manager of proprietorship, partnership, company or institution that provide business, legal, financial and accounting services to the Company or its affiliates or a spouse to the aforementioned persons.
(8) Not under any of the categories stated in Article 30 of the Company Act.
(9) Not a professional, owner, partner, Director, Supervisor, manager of proprietorship, partnership, company or institution, or a spouse that provides business, legal, financial and accounting services to the Company or its affiliates with rewarded remuneration not exceeding NTD 500,000 within last two years. Notwithstanding, this shall not apply to the Remuneration Committee members, or members of special committee of public company for merger/consolidation and acquisition who perform their duties in accordance with the Securities Exchange Act and Business Mergers and Acquisitions Act.
(10) Has no spousal or second-degree kinship relationship with any other director.
(11) Does not fall under any of the circumstances listed in Article 30 of the Company Act.
(12) Was not elected in accordance with Article 27 of the Company Act as a representative of the government or a legal entity.	0
Independent Director	Cho, Hsun-Jung	Over five years of experience as a lecturer or above at a public or private college or university in fields related to business, law, finance, or other areas relevant to corporate business.		0
	Liao, Song-Yue	Over five years of experience in areas of commerce, law, finance or related corporate business		0

(2) The Remuneration Committee is responsible for formulating and regularly reviewing the policies, systems, standards and structure of performance evaluation and remuneration for directors, supervisors and managers, and regularly assessing and setting the remuneration of directors, supervisors and managers.

(3) Operations of the Remuneration Committee

(a) The Company’s Remuneration Committee consists of 3 members, the 5th Company’s Remuneration Committee was appointed by the Board of Directors on June 28, 2023.

(b) Current term of office: July 01, 2023–June 30, 2026.

*The 2025 Annual Remuneration Committee had convened 3 times (A), the attendance record of Independent Directors is listed below:

Title	Name	Attendance in Person (B)	Ratio of Attendance in Person (%) (B/A)
Convener	Chen, Hung-Wen	3	100%
Committee Member	Cho, Hsun-Jung	3	100%
Committee Member	Liao, Song-Yue	3	100%

Other items to be recorded

If the Board of Directors does not adopt, or amends, the Remuneration Committee's suggestions, please specify the meeting date, term, contents of motion, resolution of the Board of Directors, and the Company's handling of the Remuneration Committee's opinions (If the remuneration ratified by the Board of Directors is superior than that suggested by the Remuneration Committee, please specify the deviation and reasons thereof): N/A
For resolution(s) made by the Remuneration Committee with the Committee members voicing opposing or qualified opinions on the record or in writing, please state the meeting date, term, contents of motion, opinions of all members and the Company's handling of the said opinions: N/A
The salary and remuneration committee meeting date in the most recent year, the content of the proposal, the resolution result and the company's handling of the salary and remuneration committee's opinions.

Term of the Remuneration Committee Meeting	Discussions and Resolutions
5^{th} Meeting of 5^{th} Term
Jan. 14, 2025	Approve the Company’s Proposal of 2024 year-end bonuses of employees
	All Committees had attended and approved without any objection.
	Reported to the Board of Directors and approved unanimously
6^{th} Meeting of 5^{th} Term
Mar 13, 2025	Approve the Company’s the Proposal of distribution of 2024 employee remuneration and Director compensation
	All Committees had attended and approved without any objection.
	Reported to the Board of Directors and approved unanimously
7^{th} Meeting of 5^{th} Term
Aug 11, 2025	1. Approve the Proposal of distribution of 2024 employees’ and Directors’ remuneration and Director compensation
	2. Approve the Proposal of the Company’s 2025 salary adjustment
	All Committees had attended and approved without any objection.
	Reported to the Board of Directors and approved unanimously

Difference between the Promotion of Sustainable Development – Implementation Status and Deviations from the Sustainable Development Best Practice Principles frTWSE/TPEx Listed Companies and the Reasons

Items	Implementation (Note 1)
	Y	N	Summary description
1. 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?	V	1. In November 2024, the Board of Directors approved the establishment of the Sustainability Development Committee, appointing two independent directors and one senior executive as committee members. The Organizational Charter of the Sustainability Development Committee was also adopted. The organizational structure and responsibilities of the units related to sustainability are as follows:
Responsibilities of the Sustainability Development Committee were Authorized by the Board of Directors, the Sustainability Development Committee shall perform the following duties with due care and loyalty, and report to the Board:
• Formulate, promote, and strengthen the company’s sustainability policies, annual plans, and strategies.
• Review, monitor, and revise the implementation and performance of sustainability initiatives.
• Oversee sustainability-related disclosures and review the Sustainability Report.
• Supervise the implementation of tasks related to the company’s Sustainability Guidelines and other sustainability-related matters as resolved by the Board.
Committee Operations:
The first meeting of the inaugural term was held on January 14, 2025, with all members in attendance. During the meeting, Committee Member Ms. Lin Lai-Ti was elected as the convener and chairperson. The committee resolved to collect data and prepare the ESG Report based on GRI, SASB, TCFD standards, regulations, and ESG reporting requirements for the industry. It was also resolved to conduct stakeholder materiality assessments based on the previous year’s results.
2. Dedicated or concurrent units should assist the Sustainability Committee in implementing various initiatives. These units report sustainability implementation progress to the Committee and are responsible for the following:
• Corporate Governance Team:		No significant difference

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Items	Implementation (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Y	N	Summary description
			Responsible for compliance with corporate governance laws and regulations, conducting training, and maintaining stakeholder communication mechanisms to achieve the company's sustainability goals.

• Environmental Sustainability Team:
Responsible for the environmental management system, compliance with environmental regulations and international standards, assessment of sustainability transitions, enhancement of resource efficiency, climate change response mechanisms, and the establishment of dedicated environmental management units or personnel to achieve environmental sustainability goals.

• Social Responsibility Team:
Responsible for human rights management policies and procedures, compliance with human rights-related laws and international standards, establishing internal and external communication with all organizational members and key stakeholders in the value chain, assessing related risks and management mechanisms, and promoting community and cultural development to achieve the goal of sustainable operations.

• Sustainability Information Disclosure Team:
Disclose sustainability information that is relevant and reliable, and be responsible for the sustainability information management policy to enhance transparency of sustainability disclosures.

• Operational Status of Dedicated or Concurrent Units for Sustainability Development
Reports on operations were submitted to the Board of Directors on March 13, May 12, August 11, and November 12, 2025.
The Sustainability Report was approved by the Board on August 11, 2025.

For details on the members of the task force and the implementation status, please refer to the 'Organizational Chart' section of the Company’s previous ESG reports and the Sustainability Development Committee page under the Corporate Governance section on the Company’s official website: (https://www.fucc.com.tw/) | |
| 2. Does the company conduct risk assessments of environmental, social and corporate governance (ESG) issues related | V | | This disclosure covers the Company's sustainability performance at its main locations from January 2025 to December 2025. The boundary of risk assessment is primarily based on the Company itself. | No significant difference |
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Items	Implementation (Note 1)
	Y	N	Summary description
to the company's operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies? (Note 2)			1. On May 12, 2022, the Company revised its original “Corporate Social Responsibility Best Practice Principles” to the “Sustainability Best Practice Principles,” along with additional amendments. Furthermore, on November 8, 2024, the Company approved the Internal Control System for Sustainability Information Management. In accordance with the materiality principle, the Company assesses environmental, social, and corporate governance (ESG) issues, as well as climate change risks relevant to its operations, and formulates corresponding risk management strategies. Each department is responsible for taking preventive measures in advance to minimize potential impacts arising from such risks. Daily information collection, assessment, processing, and monitoring of potential risks that may affect the Company are conducted through internal control procedures.
2. The Sustainability Committee conducts analyses based on the materiality principle of the Sustainability Report, communicates with internal and external stakeholders, and evaluates significant ESG issues by reviewing domestic and international research reports, literature, and integrating assessment data from various departments and subsidiaries. Based on this, the committee formulates effective risk management policies for identification, measurement, monitoring, and control, and implements specific action plans to mitigate the impact of related risks. The material issues identified are as follows:
	Material Issues	Risk Assessment Item Description	Description
	Environment	Environmental Impact and Management	1. Through the implementation of process safety management and a systematic management cycle, the Company effectively reduces pollutant emissions and minimizes environmental impact.
2. The Company obtained ISO 14001 certification in 2000 and ISO 50001 certification for environmental and energy management in 2023, and has continued to undergo regular recertification.
3. Using the TCFD framework, the Company has developed a climate risk identification process for the consolidated group. Following cross-departmental discussions on climate-related risks and opportunities, a total of two opportunities and three

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Items	Implementation (Note 1)
	Y	N	Summary description
					risks were identified as high-level in the assessment. Details are provided in Appendix 2-2-3 of this annual report.
4. The carbon footprints of the Company’s main products have been progressively completed, with certification obtained under ISO 14067.
5. In accordance with ISO 14064-1, the Company regularly conducts greenhouse gas (GHG) inventories to assess the impact of its operations. Based on the results of the carbon inventory, ongoing carbon reduction measures are implemented to effectively reduce Scope 1 emissions and Scope 2 indirect GHG emissions caused by purchased electricity, heat, or steam.
6. An internal audit plan is scheduled annually to examine compliance with environmental regulations applicable to the consolidated group and to ensure that all operational processes conform to the relevant requirements.
			Social	Occupational Safety and Health	1. In 2020, the Company obtained ISO 45001 Occupational Health and Safety Management System certification.
2. Fire drills and occupational safety training are conducted regularly each year to equip employees with emergency response skills and self-safety management capabilities, helping them avoid exposure to potential hazards or health risks (e.g., chemical substances, radiation, high pressure, noise, fire, explosives). In 2025, a total of 163 participants completed 1,304 hours of training, and 12 emergency response drills were conducted.
				Product Quality and Safety	1. All of the Company’s products comply with government regulations on chemical substance management and other relevant laws. A carrier contract is in place for product transfer, and tanker truck drivers receive annual training to enhance their understanding of the Company’s product characteristics. This ensures product quality and facilitates proper emergency response during transportation, thereby reducing environmental and safety risks.
2. To mitigate product liability risks, minimize property loss, and enhance product safety, the Company has entered into a

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Items	Implementation (Note 1)
	Y	N	Summary description
					blanket cargo insurance agreement with an insurance provider and secures coverage based on transaction terms. In addition, to address operational risks associated with toxic and concerning chemical substances, the Company has also purchased liability insurance for the operation of such substances, thereby reducing operational risks through insurance mechanisms.
3. In 2002, the Company obtained ISO 9001 Quality Management Certification and has since renewed related licenses. The Company also uses a hazardous substances management system to monitor product quality and safety.
		Corporate Governance	Socioeconomic and Legal Compliance	1. By establishing a governance structure and implementing internal control mechanisms, the Company ensures that all personnel and operations across the consolidated group comply with relevant laws and regulations.
2. The Company protects its interests by applying for patents on developed products in accordance with patent law.
			Enhancing Board Competency	1. Relevant training topics are planned for directors each year, providing them with updates on the latest laws, regulatory developments, and policies. In 2025, a total of 135 training hours were completed, with each director and independent director receiving an average of 7.5 hours of training.
2. Directors' liability insurance is purchased to protect them in the event of lawsuits or claims.
			Stakeholder Communication	1. To avoid misunderstandings or potential operational or legal risks arising from differing perspectives between stakeholders and the consolidated group, the Company conducts annual analyses of key stakeholders and the material issues they are concerned about.
2. Various communication channels have been established to actively engage stakeholders and reduce conflict or misunderstandings. An investor relations mailbox is set up, and the spokesperson is responsible for handling and responding to inquiries.
		4. For relevant risk management policies, please refer to the Risk Management section of the Company’s previous ESG Reports and the Risk Management page under Corporate

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Items	Implementation (Note 1)
	Y	N	Summary description
			Sustainability and Social Responsibility on the Company’s official website: (https://www.fucc.com.tw/)
3. Environmental Issues
(1) Has the Company set an environmental management system designed to industry characteristics?	V		1. The Company has received ISO 9001 international quality management system, ISO14001 environmental management system and ISO 45001 occupational safety and health management system certification and disclosed it on the official web site.
2. The Company has certified under the ISO 50001 Energy Management System, and comply with the relevant environmental laws and regulations (such as the Water Pollution Control Act, the Air Pollution Control Act, the Waste Disposal Act, and the Toxic and Concerned Chemical Substances Control Act), and ensure continuous compliance through regular review, audits, and internal and external complaint channels. All types of licenses are valid for a limited period of time
3. Environmental Management System
To ensure alignment with international environmental management standards and to continuously enhance environmental protection measures, the Company has established a comprehensive environmental management system. Key focus areas promoted in 2025 include:
(1) Pollution prevention and control: The Company actively installs and upgrades pollution control equipment and integrates abnormal operation monitoring systems and operating procedures to reduce the environmental impact of abnormal incidents. The Company also plans to introduce smart technologies to further enhance plant safety, build a safe working environment, and achieve sustainable operations.
(2) Energy and resource conservation: Technical functions continuously improve process-related equipment. In particular, the Company replaces aging rotating pumps and selects equipment featuring high energy efficiency and energy-saving designs, thereby reducing energy consumption at both the corporate and product levels and promoting company-wide energy management.
(3) Waste management: Through process and technical improvements, the Company reduces waste generation and has established a waste classification and recycling system to maximize resource recovery and utilization efficiency.	No significant difference

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Items	Implementation (Note 1)	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Y	N	Summary description

Overall, the Company’s environmental management system performed effectively in 2025. To ensure effective implementation, each department completed one internal audit in 2025, and no material deficiencies were identified.
4. ISO 14001 Certification
The Company commenced ISO 14001 training programs in 1999 and successfully passed external certification by the Bureau of Standards, Metrology and Inspection, Ministry of Economic Affairs (BSMI), in 2000. Subsequent external audits have been conducted by the Metal Industries Research & Development Centre (MIRDC). The latest certificate is valid from September 14, 2024 to September 13, 2027, and is compliant with the latest environmental management system standards.
(2) Does the Company endeavor to use energy more efficiently and to use renewable materials with low environmental impact?
Energy Item	2025	2024
Total energy consumption (GJ)	1,127,193	1,056,123
Percentage of purchased electricity	10.44%	9.94%
Renewable energy usage rate	0.02%	0.22%
Total self-generated and self-consumed energy	0	0
Notes:
(1) The energy management indicators represent the organization’s internal energy consumption.
(2) The reporting boundary for 2025 and 2024 covers the parent company’s FUCC Linyuan Plant.
(3) FY2024 data were assured by Deloitte & Touche (Taiwan). 2025 data are internally compiled and are expected to complete external third-party verification by August

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Items	Implementation (Note 1)
	Y	N	Summary description
			2026 .
2. The Company actively promotes various energy reduction measures and has been implementing a fuel energy carbon reduction plan since 2011. The Company has gradually converted the fuel oil used in process heaters to liquefied natural gas, with all heaters having been replaced by 2017. The manufacturing department continues to improve process-related equipment, replacing older rotating pumps with seal less ones, adding variable frequency drives, insulating pipelines, using micro-thermal air dryers, and replacing aging public equipment with high energy efficiency and energy-saving designs to reduce both corporate and product energy consumption. Additionally, we have expanded the use of renewable energy in indirect emission sources to optimize energy use efficiency, with about 50,000 kWh of renewable energy newly purchased this year. These measures aim to reduce energy consumption or maintain energy efficiency, and the results are reported monthly in production and sales meetings. In response to the global transition toward a green economy, the Company began establishing and implementing an ISO 50001 Energy Management System in 2022. In November 2023, the Company successfully passed external certification conducted by the Metal Industries Research & Development Centre (MIRDC) and obtained the ISO 50001 certificate, which is valid from November 17, 2023 to November 16, 2026. Through systematic energy management and continuous improvement in energy performance, the Company advances its green operations policy.
Using 2021 as the baseline year, the Company’s total energy consumption (including electricity and other energy sources) was 1,222,811 GJ, of which electricity consumption was 36,885.8 MWh, accounting for 10.86% of total energy consumption. The Company has set a target to reduce electricity consumption by 1% annually. During the reporting year, purchased electricity totaled 32,680.5 MWh and renewable energy purchases totaled 52.3 MWh, resulting in total electricity consumption of 32,732.8 MWh. This represents an 11.26% reduction compared with the baseline-year electricity consumption.
The Company implements the above measures to reduce energy consumption and maintain or improve energy efficiency, and reports progress on a monthly basis. For further details on energy performance improvement initiatives, key measures, and

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Items	Implementation (Note 1)					Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Y	N	Summary description
			progress, please refer to the Energy Management section of the Company’s ESG reports for prior years.
(3) Has the Company evaluated the potential risks and options proposed by climate change for its business now and in the future and adopted relevant measures to address them?	V		1. Each year, the Company develops management policies for significant topics, including identifying operational risks and incorporating recommendations for the disclosure of climate-related financial information published by the Financial Stability Board (FSB) under the TCFD framework into our operational management. This information is disclosed on the official website and in the Sustainability Report, aiming to help stakeholders understand and benefit from the impacts of climate change-related risks and opportunities, as well as the corresponding response measures.
2. The Company's assessment of climate change-related risks and opportunities, along with corresponding response measures, is presented in Appendix 2-2-3 of this annual report. For other relevant risk management policies, please refer to the Risk Management section of the Company’s previous ESG Reports and the “Climate Change Risks and Opportunities” page under the Risk Management section of Corporate Sustainability and Social Responsibility on the Company’s official website: (https://www.fucc.com.tw)
(4) 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?	V		1. Since 2015, the Company has conducted greenhouse gas (GHG) emissions inventories. The Company’s FUCC Linyuan Plant has regularly engaged BSI (British Standards Institution) to perform third-party verification, and since 2021, the Company’s total water withdrawal and waste data (hazardous waste) have been subject to CPA assurance. In addition, the Company conducts annual internal inventories to accurately track emissions from each GHG source, total water withdrawal, and total waste weight. The statistical data for the most recent two years are summarized as follows:
			Disclosure Items	2025	2024	Increase (Decrease) %
			Direct GHG emissions (Scope 1/ton CO₂e)	61,101	57,624	+6.03%
			Indirect GHG emissions (Scope 2/ton CO₂e)	19,673	16,940	+16.13%
			Indirect GHG emissions (Scope 3/ton CO₂e)	30,375	16,582	+83.18%
			Total GHG emissions (tons CO₂e)	112,603	91,146	+23.54%
			Total GHG emissions intensity	12.50	8.85	+41.23%

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Implementation (Note 1)
Y	N	Summary description
		(tons CO2e/million turnover)
		Total water use (tons)	100,040	106,070	-5.7%
		Total water use intensity (ton/million turnover)	11.10	10.29	+7.9%
		Total water withdrawal (thousand m3)	100.04	106.07	-5.7%
		Wastewater Discharge Volume (thousand m3)	56.28	51.93	+8.4%
		Total Water Consumption (thousand m3)	43.76	54.14	-19.2%
		Waste (tons) - hazardous waste	0.02	0.02	0%
		Waste (tons)-non-hazardous waste	200.84	118.76	+69.1%
		Total waste (tons) - hazardous + non-hazardous waste	200.86	118.78	+69.1%
		Total waste (tons/million turnover)	0.022	0.012	+91%
		2. The Company has established policies for greenhouse gas reduction, water conservation, and other waste management initiatives.
		Category	Description
		Greenhouse Gas Reduction Management	The results of the greenhouse gas inventory, assurance status, and reduction policies are presented in Appendix 2-2-3 of this annual report.
		Water Resource Management	The Company’s primary water source is municipal water supplied from Kaohsiung. Water is mainly used for cooling purposes. The Company continues to implement additional water recycling initiatives and measures to reduce evaporation losses. Wastewater is treated by on-site facilities and then discharged to the industrial park’s centralized wastewater treatment plant. Discharge quality consistently exceeds applicable regulatory requirements. The Company remains committed to improving effluent quality and minimizing environmental impacts. To respond to potential water restrictions during drought periods, in addition to continuing water-saving improvement programs, the Company will progressively reduce non-process water use (e.g., irrigation and cleaning in administrative areas) in accordance with different water alert levels. During water restriction periods, the
			control system will be implemented in accordance with the current water control policy.
			The Company will also implement a water control policy to reduce the use of water for the water treatment of the river. The Company will also implement a water control policy to reduce the use of water for the water treatment of the river in accordance with the current water control policy.

Implementation (Note 1)
Y	N	Summary description
			Company will also continue to reduce cooling water discharge to maintain stable production. These measures are based on a baseline water consumption of 51.79 thousand cubic meters in 2020, with a target of reducing water consumption by 1% annually.
		Waste Management	Under the water resource management measures implemented at the Company’s FUCC Linyuan Plant in 2025, total water consumption was approximately 43.76 thousand cubic meters, representing a 15% reduction compared with the baseline year and achieving the annual 1% reduction target.

The Company is committed to environmental protection. The Sustainable Development Committee conducts an annual review, and the Company performs internal and external audits. The Company obtained ISO 14001 Environmental Management System certification in 2000.

To promote sustainable resource reuse, the Company’s waste management principle prioritizes waste reduction, with incineration or landfill used only as a last resort.

Regarding total waste generation, the Company uses 2020 total waste generation of 218.46 metric tons as the baseline. To achieve the annual 1% reduction target, the Company adopts strategies focused on reducing total waste and enhancing waste resource recovery. Through source management measures—such as process improvements and reductions in raw material usage—the Company reduces waste generation, improves utilization, and advances waste minimization.

In 2025, total waste generation at the FUCC Linyuan Plant was 200.86 metric tons, representing an 8% reduction compared with the baseline year and achieving the annual 1% reduction target. | |
| | | | For additional policies related to energy conservation and carbon reduction, greenhouse gas mitigation, water conservation, or other waste management initiatives, please refer to the Company’s official website under the Corporate Sustainability and Social Responsibility – Sustainability Performance section, the Environmental and Safety section of the ESG Report, | | |

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Items	Implementation (Note 1)	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Y	N	Summary description

1. Status of Third-Party Verification as of the Date of Annual Report Publication
Disclosure Items	2025	2024
Total Greenhouse Gas Emissions	The relevant data are internal statistics, and external verification is expected to be completed in August, 2026.	The Company’s FUCC Linyuan Plant has been verified by BSI (British Standards Institution)
Total water withdrawal (thousand m³), Wastewater Discharge Volume (thousand m³), Total Water Consumption (thousand m³)	Assured by Deloitte & Touche (Taiwan)
Waste (Tons) - Hazardous Waste

4. Social issues
(1) Has the company formulated relevant management policies and procedures in accordance with relevant laws and regulations and international hmm rights conventions?	V
1. To protect labor rights and interests in accordance with the law, and to reduce the hazards to employee safety and health to prevent occupational disasters in accordance with the characteristics of the chemical industry.
2. Establish regular communication channels for employees to obtain information and express their opinions.
3. A competitive compensation system and comprehensive employee benefits and retirement policies have been established.
For details, please refer to the “Employee Care” section of the Company’s ESG Report: (https://www.fucc.com.tw/)	No significant difference

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Items	Implementation (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Y	N	Summary description
(2) 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?	V		The Company stipulates and implements reasonable employee welfare measures (including remuneration, vacation and other benefits, etc.), and appropriately share the results of operating performance in the form of employee remuneration and wage. Please refer to Section V of Chapter IV “Labor Relations” of the annual report for further details.

Compensation System:
The salary scale is based on academic background and professional knowledge and skills, as well as personal performance. The starting salary is better than the minimum salary set by the Labor Standards Law. In addition to the basic salary, there are three annual holiday bonuses and employee bonuses, and operating performance or results are appropriately reflected in employee compensation, and a certain percentage of employee compensation is allocated in accordance with the Articles of Incorporation, and operating performance is handled in the case of employee salary adjustments.
Vacation System:
The leave is compiled in accordance with the Labor Standards Law, the Personnel Management Regulations, the Work Rules and the Gender Equality Law, and is granted in accordance with the law. In addition, considering that employees may not be able to take all the special leave they are entitled to in the current year due to work factors, we have added a special leave extension period to allow employees to take all the special leave they are entitled to by the end of the following year.
Group agreement:
Although the Company has established a labor union, the Company has not yet signed a group agreement because the labor union has not yet requested the Company to negotiate a group agreement.
For detailed information, please refer to Section V – Labor Relations in the Annual Report, as well as the Employee Section and Sustainability Performance page under Corporate Sustainability and Social Responsibility on the Company’s official website:
(http://www.fucc.com.tw/) | No significant difference |
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Items	Implementation (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Y	N	Summary description
(3) Does the Company provide employees with a safe and healthy working environment, and implement safe safety and health education for employees?	V	1. In response to the 2018 revision of ISO 45001:2018 Occupational Health and Safety Management System, the Company completed the implementation of relevant ISO 45001 management systems in 2020. Since then, the Company has continued to pass third-party verifications annually. The Company also participates in the Taiwan Responsible Care Association (TRCA) and the Linyuan Industrial Zone Safety and Health Promotion Association. Through peer learning and mutual observation in the areas of occupational safety, health, and environmental protection, the Company has effectively enhanced the safety and health protection of its operational personnel.
2. In 2025, there were 163 occupational safety and health employees with 806 hours of training. There were no occupational accidents, fires, or other incidents in the year.
3. Please refer to the Sustainable Management page on our website for related employee safety instructions. (http://www.fucc.com.tw/)		No significant difference
(4) Has the Company established effective career debut training programs for employees?	V	In order to achieve the goal of "lifelong learning", we provide on-the-job training subsidies to our employees. In addition, we have also designed a comprehensive management development program that integrates and utilizes information and resources from within the company, outside the company, and abroad, so that our employees can acquire the latest management methods and concepts in real time.
1. New recruits are provided with job training and factory practical training courses (including the company's work rules and regulations, integrity and ethics promotion, and factory environmental safety and health awareness promotion courses)
2. Average training hours per person in 2025:		No significant difference
		Staff Training Program	Hours and Numbers
		License Retraining	Retraining rate:100%
		Various work and professional technical programs	163 persons with 9,340 hours
(5) Does the company comply with the relevant laws and international standards	V	1.The Company has multiple channels such as the spokesperson system and the website to provide the Company’s latest news, product technical information and communication. The		No significant difference

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Items	Implementation (Note 1)
	Y	N	Summary description
with regards to customer health and safety, customer privacy, and marketing and labeling of products and services, and implement consumer protection and grievance policies?			complaint channels and procedures for stakeholders have been disclosed on the Company’s official web site.
2. The Company has established a personal data protection management system and policy. Through internal audits and educational training on personal information, we safeguard our customers' data.
3. The specifications and precautions for the products manufactured and distributed by the Company are listed in the Certificate of Analysis (COA) and Safety Data Sheet (SDS). In accordance with regulations, all relevant information is clearly labeled on the external packaging, including preparation lists and the disclosure of SDS, along with the implementation of necessary communication measures.
(6) Has the company formulated supplier management plan 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?	V		1. Supplier ESG / EHS Requirements and Management Policy
Suppliers are expected to treat environmental protection as a fundamental responsibility by reducing environmental impacts throughout their operations and manufacturing processes, while safeguarding workers’ health and safety. For engineering contracts, the Company requires suppliers to comply with occupational safety and health regulations. Personnel entering the site must be covered by labor and health insurance and accident insurance to ensure their safety. Suppliers are also required to manage and dispose of waste in compliance with applicable laws and regulations, and to participate in safety briefings and communications.

The Company has established a Supplier Management Policy and implements supplier management and selection in accordance with its internal procurement EHS management procedures. Suppliers are required to comply with applicable requirements in environmental protection, occupational safety and health, and relevant regulations, and the Company continues to strengthen sustainable supply chain management. | No significant difference |
| | | Categories | Key Management Measures | |
| | | (1) Policy and management mechanism | EHS requirements are integrated into the procurement process. Relevant requirements are clearly stipulated at the requisition and contract stages, and suppliers are required to comply with, | |

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Items	Implementation (Note 1)
	Y	N	Summary description
				including but not limited to:
a. Environmental protection and pollution prevention/control requirements in compliance with laws and regulations
b. Compliance with occupational safety and health regulations
c. Compliance with requirements for the transportation, storage, and labeling of hazardous substances
d. Personnel engaged in work must possess appropriate qualifications and complete required safety training
			(2) Supplier selection and management	a. Establish a supplier evaluation system and, where necessary, conduct on-site assessments to evaluate execution capability and EHS management performance.
b. Establish an approved supplier list based on evaluation results as the basis for subsequent procurement.
c. Include EHS requirements as key criteria in supplier selection for procurement cases.
			(3) Procurement and contract performance management	a. Conduct hazard identification and risk assessment prior to procurement and incorporate relevant EHS specifications into procurement documents.
b. Require suppliers to provide construction/work plans, risk assessments, and safety management measures during the contract performance period.
c. For suppliers performing on-site work, implement safety

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Items	Implementation (Note 1)
	Y	N	Summary description
				controls in accordance with contractor management requirements and assign dedicated units to supervise compliance.
			(4)Implementation status	The Company has incorporated supplier EHS management requirements into its procurement system and implemented them in practice. Through supplier selection, audits, and contract performance management, the Company ensures supplier compliance and continuously enhances safety and environmental performance across the supply chain.
5. 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 thereports above?	V	1. The Company has adopted the "Core option" of the latest "GRI Standards" and has prepared the sustainability report in accordance with the government's regulatory requirements for "Listed Companies to Prepare and Report Corporate Sustainability Reports" to align with the "United Nations Sustainable Development Goals" (SDGs). Additionally, the Company reference the standards of the Sustainability Accounting Standards Board (SASB) to disclose industry-specific information and index the report content corresponding to SASB indicators.
2. The 2024 Sustainability Report has been given a limited assurance by Deloitte, in accordance with the assurance standard Bulletin No. 3000 "Engagements to Perform Assurance on Non-Historical Financial Information" published by the Accounting Research and Development Foundation of the Republic of China, which is based on the International Standard on Assurance Engagements ISAE 3000.
3. The Company anticipate completing the 2025 Sustainability Report by August 2026, with the sustainability indicators relevant to the chemical industry within it to receive an assurance opinion from a third-party verification entity.		No significant difference
6. 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, please describe any deviation from the principles in the Company’s operations:

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Items	Implementation (Note 1)
	Y	N	Summary description
The Company amended its “CSR guidelines” in 2020, and has fully implemented corporate governance, developed the sustainable environment, maintained social welfare, improved the disclosure of corporate social responsibility information. The CSR guidelines was revised as the " Sustainable Development Guidelines " on May 12, 2022.
7. Other important information to facilitate better understanding of the company’s promotion of sustainable development: The Company aims to achieve harmony and co-prosperity between the Company and the region where it is located by the following methods, so as to enhance the connection between the Company and social responsibility and create a win-win relationship with the society and communities. (1) Contribution to the communities: The Company donated Mutual Neighborhood Fund to the Linyuan Industrial Park Community Fund in 2025, and provided emergency relief to low-income households in the communities near its Linyuan Plant and subsidize community activities, which show the Company’s practical action of contributing to the communities. (2) Donation for public welfare: Sports are an essential foundation for public health and holistic education. The Company has long supported the promotion of sports through concrete actions, contributing to community engagement and the development of sports in its principal operating region. In 2025, the Company sponsored the 3X3 Basketball Association to support the promotion of the 3-on-3 basketball format and the organization of various tournaments, including the Presidential Cup. The Company also sponsored the Chinese Taipei Gymnastics Association in hosting the National Artistic Gymnastics Championships, contributing to grassroots athlete development and the advancement of competitive sports. In cultural promotion, the Company sponsored the Taiwan Arts Development Association to implement the “Taiwan on the Moon – 2025 Swiss National Day Special Performance Project in Bern, Switzerland.” The program featured Paiwan indigenous singer Mei-Chun Sang performing traditional melodies, presenting the diversity of local culture and artistic value through an international performance and enhancing international visibility. In addition, the Company supports the Maria Social Welfare Foundation. Established in 1988, the Foundation provides persons with disabilities with medical rehabilitation, education, vocational training, and employment counseling services, and promotes life education programs at schools nationwide. Through charitable donations, the Company supports the Foundation’s service operations and aims to help more persons with disabilities access appropriate care and development opportunities. Going forward, the Company will continue to focus on public issues related to sports, culture, and social welfare, and fulfill its corporate social responsibility through ongoing community engagement and philanthropic contributions. (3) Environmental and community safety: The Company has received ISO 9001 International Quality Management System, ISO14001 Environmental Management System and ISO 45001 Occupational Safety and Health Management System Certification. Linyuan Plant implements the monthly environmental safety training programs including fire disaster, electrical safety, hypoxia prevention, construction and occupational disaster prevention, process safety promotion, false alarm accidents review (excluding internal training of various units), the number of education hours are 2 hours per month, and a total of 163 personnel with 806 hours participated in these programs in 2025. The Company also implemented the

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Items	Implementation (Note 1)			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Y	N	Summary description
self-management of industrial safety, which included the following measures: 1. Daily inspection. 2. Monthly preventive maintenance. 3. Repair and replace equipment and pipeline every 2 years. 4. Adopt work permits to manage and control related hazards and dangerous work. In order for the community to understand the Company’s efforts and achievements to maintain the safety of the community, and to express FUCC’s sincerity in caring for the community, please refer to the social participation section of our ESG reports for the relevant identification results and implementation measures.

Note 1: If “Yes” is ticked in the “Implementation status” column, please concretely describe the major policies, strategies, and measures adopted and the status of their implementation. If “No” is ticked in the “Implementation status” column, please explain the deviations and the reasons in the “Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons” column and explain the Company’s plans for adoption of related policies, strategies, and measures in the future. However, for Items 1 and 2, the TWSE/TPEx listed company shall describe its governance and supervisory framework for sustainable development, including but not limited to management policy, strategy and goal formulation, review measures, etc. It additionally shall describe the company's risk management policies or strategies for operations-related environmental, social, and corporate governance issues, and their assessment status.
Note 2: The materiality principle refers to focusing on environmental, social and corporate governance issues likely to have a material impact on the Company's investors and other stakeholders.

Climate-Related Information of TWSE/TPEx Listed Company

(1) Risks and opportunities for the Company arising from climate change and related measures taken by the Company.

Project	Implementation status
1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities	1. In November 2024, the “Sustainability Development Committee” was established, authorized by the Board of Directors and composed of two independent directors with professional expertise in corporate sustainability and one senior executive. The Committee is required to convene at least once a year and is responsible for formulating, promoting, and strengthening key action plans related to sustainability policies across the group’s companies—including climate-related issues. It also reviews, monitors, and revises the implementation and effectiveness of sustainability initiatives, with reports submitted to the Board of Directors.

• Sustainability Committee Operations: The first meeting of the inaugural term was held on January 14, 2025.

The Committee is supported by a Sustainability Task Force, which assists in implementing various initiatives. The task force convenes cross-departmental meetings on an ad hoc basis to facilitate discussion and coordination in pursuit of environmental sustainability goals. This task force had already been established and has continued to carry out the Company’s sustainability-related affairs.

• Sustainability Task Force Operations:
Reports were submitted to the Board of Directors on March 13, May 12, Aug 11, and November 12, 2025.
The Sustainability Report was approved by the Board on August 11, 2025. | | |
| 2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).

Describe the financial impact of extreme weather events and transformative actions. | The Company is actively developing solutions aimed at reducing the operational and financial impacts of climate change and enhancing our organizational climate resilience. We have defined our strategic timelines as short-term (within 5 years), medium-term (6 to 10 years), and long-term (over 10 years) to assess the potential operational and financial impacts of related climate risks and opportunities. This evaluation guides our planning for various actions to address climate-related risks and opportunities. The strategic disclosures are as follows: | | |
| | Climate Change Risk Issues | Risk Level | Time Frame |
| | Increase in greenhouse gas pricing | High | Short-term, Mid-term |
| | Cost of Transitioning to Low-Carbon Technologies | High | Mid-term, Long-term |
| | Increased Severity of Extreme Weather Events such as Typhoons and Floods | High | Mid-term, Long-term |
| | Strengthening emissions reporting obligations | Medium | Short-term, Mid-term, Long-term |
| | Regulatory requirements for existing products and services | Medium | Short-term |
| | Replacement of existing products and services with low-carbon alternatives | Medium | Mid-term, Long-term |
| | Changes in customer behavior | Medium | Short-term, Mid-term |
| | Changes in rainfall patterns and extreme changes in climate models | Medium | Mid-term, Long-term |
| | Increase in raw material costs | Medium | Short-term, Mid-term, Long-term |
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Project	Implementation status
	Increase in average temperature	Medium	Mid-term, Long-term
	Sea level rise	Medium	Mid-term, Long-term

	Climate Change Opportunity Issues	Opportunity Level	Time Frame
	Reduction in water usage and consumption	High	Mid-term, Long-term
	Using Low-Carbon Energy	High	Mid-term, Long-term
	Using more efficient production and distribution processes	Medium	Mid-term, Long-term
	Recycling and reuse	Medium	Mid-term, Long-term
	Switching to more efficient buildings	Medium	Mid-term, Long-term
	Adopting more efficient modes of transport	Medium	Short-term, Mid-term, Long-term
	Adoption of incentive policies	Medium	Mid-term, Long-term
	Use of new technologies	Medium	Mid-term, Long-term
	Participation in the carbon trading market	Medium	Mid-term, Long-term
	Transition to decentralized energy sources	Low	Mid-term, Long-term
	This table outlines the specific risks and opportunities associated with climate change that our company has identified, along with their estimated risk levels and applicable time frames. These are integral for guiding our strategic responses and planning for future scenarios.
1. Transformation Risks - Policy and Regulatory Aspects - Increased Pricing of Greenhouse Gas Emissions
[Short-term]
Under the Climate Change Response Act, entities in the power sector and large-scale manufacturers with annual greenhouse gas (GHG) emissions reaching 25,000 metric tons of carbon dioxide equivalent (tCO2e) will be subject to carbon fee charges starting in 2025. Based on the current fee rate of NT$300 per metric ton and the Company’s average emissions in recent years, the estimated annual carbon fee expense is approximately NT$10–20 million (the actual amount will depend on actual emissions and the applicable fee rate), which may increase operating costs.
[Medium-term]
If carbon fee rates increase or emissions standards become more stringent, operating costs may rise further, potentially affecting product pricing strategies and market competitiveness.
[Response Strategy]
1. Integrate carbon costs into capital expenditure decisions. When evaluating new equipment procurement, the Company will incorporate carbon emission costs into the overall assessment, including considerations for emission reduction potential and carbon price assumptions, to support procurement and investment decisions. Carbon cost assumptions will also take into account conditions in the Company’s major sales markets and will be updated annually for reference.
2. Improve energy efficiency of existing equipment and operations. The Company will prioritize on-site energy-saving measures, such as upgrading to high-efficiency energy equipment, conducting regular

Project	Implementation status
	maintenance of process equipment, using lower-carbon or higher-calorific-value fuels, and improving pipe insulation and thermal management.

Implement the approved voluntary reduction plan to mitigate policy risk. To reduce exposure to policy-related risks, the Company has submitted a voluntary emission reduction plan, which has been approved by the competent environmental authority. During the approved period (2025–2030), the Company may be eligible for preferential fee rates by implementing the approved reduction measures.
Transformation Risk - Technical: Low Carbon Technology Transformation
Carbon emissions from manufacturing processes are mainly due to process equipment. In order to achieve low-carbon processes and products, we continue to improve our equipment to save energy and reduce carbon emissions.
Entity Risk - Immediacy
(1) The increase in the number of extreme weather events has led to an increase in the frequency of typhoons and rainstorms, which may result in flooding of the Kaohsiung factory, affecting the operation of the factory and causing potential financial losses, but the factory has completed the waterproofing project, so the impact on the overall operation will not be too great. As a result, the impact on the overall operation will not be too severe. The Company will take measures to minimize the immediate risk by implementing regular cleaning, maintenance and repair of the drainage system and establishing emergency response plans for typhoons and rainstorms.

(2) To address water restriction risks, the Company reduces cooling water discharge and enhances water resource utilization efficiency through recycling.

Resource Efficiency Opportunities - Reduced Water Use and Consumption
In addition to complying with the government’s water conservation policies, the Company has implemented water reduction plans to decrease reliance on raw water resources and reduce wastewater discharge. Although this may result in a slight increase in operating costs, the overall financial impact on operations is not expected to be significant.
Energy Source Opportunities - Use of Low Carbon Energy
(1) Use of low carbon energy by replacing fuel oil with liquid natural gas.
(2) Installation of solar energy or procurement of green power to gradually increase the proportion of renewable energy in the production of electricity. |
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Project	Implementation status
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	1. The Company develops management strategies for major risk issues each year and reviews their effectiveness through the Sustainability Development Committee. In recent years, the increasing frequency of extreme weather events has highlighted the urgency of the global warming crisis. As a result, governments around the world are placing greater emphasis on climate change and have revised national and regional regulations to urge businesses to incorporate climate-related issues into their operational management. In addition to identifying operational risks associated with climate change, the Company also follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) issued by the Financial Stability Board (FSB). It integrates the four core elements—“Governance,” “Strategy,” “Risk Management,” and “Metrics and Targets”—into its operations. Governance performance related to these issues is disclosed in the Company’s annual report, official website, and sustainability report, enabling stakeholders to understand the potential impact of climate-related risks and opportunities and the corresponding measures adopted by FUCC.
2. Climate-related risks are identified, assessed, and managed through the following process:
Collection of climate and environmental background data → Assessment of risk and operational scope → Development of a list of climate risks, opportunities, and internal impact factors → Risk and operational/impact analysis → Implementation of control measures and target setting → Review of the effectiveness of strategies and targets.
3. The Sustainability Task Force evaluates transition risks (policy and regulatory, technology, market, and reputational), physical risks (acute and chronic), and opportunities (resource efficiency, energy sources, products/services, markets, and resilience) in accordance with the management process. These assessments are then discussed and identified through the Sustainability Committee.
For details on the above items, please refer to the relevant sections of the Sustainability Report—Risk Management, Climate Change Management, TCFD Risk Management Process, and the TCFD Climate-Related Risks and Opportunities Disclosure Framework—or visit the Sustainability page on the FUCC official website.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described.	In accordance with the TCFD recommendations, the Company identifies climate change risks by establishing scenarios based on transition risks and physical risks to evaluate climate resilience strategies. Given the significant impact of climate-related risks on the Company's operations, the most severe scenario is used as the basis for analysis.

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Project	Implementation status

Policy and Regulation	Water Consumption Fee
Policy and Regulation	EU CBAM
Although the Company’s products are not currently within the first wave of direct scope, downstream customers may be affected, which could indirectly influence product demand and pricing.
Market Risk	Low-Carbon Products
Technology Risk	Low-Carbon Production Technology
	Reputational Risk

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Project	Implementation status
	Physical Risk	Acute Risk	Typhoons, Floods	Extreme weather events such as strong winds caused by typhoons may require plant shutdowns to prevent process hazards. Sudden heavy rainfall or prolonged precipitation could lead to flooding and suspension of plant operations, posing a risk of business interruption and financial loss.
		Chronic Risk	Water Shortage	Based on 1986–2005 as the baseline period, climate scenario analysis for the near-term period (2016–2035) indicates that the frequency of drought events may increase, potentially affecting the reliability of production water supply and capacity utilization. The Company has continued to strengthen water resource management, improve water-use efficiency, and enhance backup and contingency arrangements to mitigate potential operational impacts.
6. If there is a transition plan for managing climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	1. In accordance with the carbon fee levy regulations, the Company obtained approval for its voluntary emissions reduction plan application in early 2026. Following the review, the progress of the application will be disclosed and updated in the subsequent year.
2. For more details, please refer to the relevant sections of the Sustainability Report—Risk Management, Climate Change Management, TCFD Risk Management Process, and the TCFD Climate-Related Risks and Opportunities Disclosure Framework—or visit the Sustainability section on the FUCC official website.
7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	Starting in 2024, the Company has begun calculating its greenhouse gas emissions on a monthly basis in accordance with the Climate Change Response Act and its related sub-laws promulgated by the Ministry of Environment. Beginning in 2025, incorporate a carbon cost of NT$300 per metric ton into its operational performance calculations. This approach aims to quantify greenhouse gas emissions costs and drive emission reduction efforts. At the same time, to promote carbon reduction in process equipment, the Company identifies high-emission equipment areas and estimates the emission differences between continuing to use existing equipment and replacing it. When equipment replacement is required, carbon emission costs are considered as part of the procurement evaluation criteria.
8. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified.	The Company has long been committed to environmental protection, striving to achieve a green operational model characterized by “maximized production efficiency and minimized environmental impact,” with the aim of creating a win-win outcome for both the economy and the environment.
The “Sustainability Task Force” holds quarterly meetings to supervise progress. For the greenhouse gas (GHG) reduction timeline and annual progress, please refer to Section 1–2: GHG Reduction Goals, Strategies, and Action Plans.
At the FUCC Linyuan Plant, a fuel energy carbon reduction plan has been in place since 2011, gradually converting process heating furnaces from fuel oil to liquefied natural gas (LNG). The furnace conversion was completed in 2017.

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Project	Implementation status
	By selecting lower-carbon fuel sources and improving energy efficiency, the Company has enhanced performance in both energy savings and GHG emissions reduction, contributing to environmental sustainability.
In 2025, the Company obtained emissions reduction credits totaling 5,804 metric tons of carbon dioxide equivalent (tCO_{2}e) issued by the Ministry of Environment for the period from 2021 to 2022. Cumulatively, the Company has obtained a total of 32,778 metric tons of carbon dioxide equivalent (tCO_{2}e) in issued emissions reduction credits.
At this stage, the Company uses the purchase of renewable energy certificates (RECs) as a preliminary method for reducing carbon emissions. After assessing available space at various operating sites, the Company will consider installing equipment or continuing to procure renewable energy. In 2025, the Company purchased 52,336 kWh of electricity generated from renewable energy sources.
9. Greenhouse gas inventory and assurance status and reduction targets, strategy, and concrete action plan (separately fill out in points 1-1 and 1-2 below).	Tables 1-1 and 1-2 are shown below

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1-1 Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years

1-1.1. Greenhouse Gas Inventory Information.

Describe the emission volume (metric tons $\mathrm{CO}{2}\mathrm{e}$), intensity (metric tons $\mathrm{CO}{2}\mathrm{e}/\mathrm{NT}$ million), and data coverage of greenhouse gases in the most recent 2 fiscal years.

The Company has established a greenhouse gas inventory mechanism in accordance with the Ministry of Environment’s Greenhouse Gas Emission Inventory Registration Management Measures, the Greenhouse Gas Inventory Registration Operation Guidelines, and the International Organization for Standardization (ISO)’s ISO/CNS 14064-1. Since 2014, we have been conducting annual inventories of greenhouse gas emissions at the Linyuan plant to fully understand the usage and emission status of greenhouse gases and to verify the effectiveness of the reduction measures.
In addition, the GHG inventory data for the most recent two years were compiled using the operational control approach to consolidate the Company’s GHG emissions. Among the subsidiaries included in the consolidated financial statements, those that have completed internal inventories are described below:

Scope of Inventory	Disclosure Items	2025	2024
The Company	Direct GHG Emissions (Scope 1/ton CO2e)	61,101	57,624
	Indirect GHG Emissions (Scope 2/ton CO2e)	19,673	16,940
	Indirect GHG Emissions (Scope3 /ton CO2e)	30,375	16,582
	The Company GHG Emissions (tons CO2e)	112,603	91,146
Certain Subsidiaries Included in the Consolidated Financial Statements	Direct GHG Emissions (Scope 1/ton CO2e)	13,861	14,199
	Indirect GHG Emissions (Scope 2/ton CO2e)	7,350	6,690
	Indirect GHG Emissions (Scope3 /ton CO2e)	85,934	69,639
	The Subsidiaries Total GHG Emissions (tons CO2e)	107,145	90,528
Total	Total Greenhouse Gas Emissions (tons CO2e)	219,748	181,674
	Total GHG Emissions Intensity (tons CO2e/million turnover)	24.39	17.63

Notes:
1. The scope of subsidiaries included in the consolidated financial statements-2025:UPM Pingnan Plant, HEC Pingnan Plant, GVCI and Fusugar Industry Corp. : 2024: UPM Pingnan Plant and HEC Pingnan Plant.
2. The GHG emissions are consolidated based on the operational control approach.
3. The GHGs included in the calculation are: carbon dioxide ($\mathrm{CO}{2}$), methane ($\mathrm{CH}{4}$), nitrous oxide ($\mathrm{N}{2}\mathrm{O}$), hydrofluorocarbons ($\mathrm{HFCs}$), perfluorocarbons ($\mathrm{PFCs}$), sulfur hexafluoride ($\mathrm{SF}{6}$), and nitrogen trifluoride ($\mathrm{NF}_{3}$).
4. The emission factors are based on the latest version of the “GHG Emission Factors” published by the Ministry of Environment, with Global Warming Potential (GWP) values adopted from the IPCC Fifth or Sixth Assessment Reports, depending on availability.
5. The calculation of GHG emission intensity includes emissions from Scope 1, Scope 2, and Scope 3.

This information is based on internally collected data. Any discrepancies between this data and the figures disclosed through official information reporting platforms may be attributable to the timing of third-party verification, which was completed after the annual report submission deadline.

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1-1.2. Greenhouse Gas Assurance Information

The description of the assurance for the most recent two fiscal years up to the date of the annual report publication includes details on the scope of assurance, the assurance body, the assurance standards, and the assurance opinions. Here are the specifics:
Among the Company’s operating sites, the assurance boundary for GHG data at the Linyuan Plant has been subject to third-party verification since 2015, and the Plant has obtained ISO/CNS 14064 certification. The Company’s Taipei Office and other subsidiaries included in the consolidated financial statements currently compile GHG emissions through internal inventories and are required to commence third-party assurance starting in 2028. The relevant assurance information is summarized as follows:
Disclosure Items	2025	2024
The Company	As of the printing date of the annual report, the relevant data are internal statistics. It is expected that the external verification will be completed in August 2026, and the complete assurance information will be disclosed in the sustainability report.	Of the Company’s disclosed total greenhouse gas emissions, 91,146 metric tons of CO2e (accounting for 50% of total emissions) were assured by BSI (British Standards Institution). The assurance was conducted in accordance with ISO/CNS 14064-1:2018, ISO/CNS 14064-3:2019, the Ministry of Environment’s Greenhouse Gas Inventory Guidelines (2024 edition), the Greenhouse Gas Emissions Registration and Inventory Management Regulations, and other relevant greenhouse gas control standards issued by the Ministry of Environment. The assurance opinion provided was one of reasonable assurance.
The Company’s Taipei Office and other subsidiaries included in the consolidated financial statements.	Subsidiaries included in the consolidated financial statements should begin their greenhouse gas inventory starting from 2028.

1-2. Greenhouse Gas Reduction Targets, Strategies, and Action Plans

Specify the baseline year and corresponding data for greenhouse gas reduction, the reduction targets, strategies, specific action plans, and the progress toward achieving the reduction targets.
1. The GHG emissions of the Company decreased from 103,363 tCO2e in the verified baseline year 2014 (Scope 1 and Scope 2) to 80,774 tCO2e in 2025, representing a reduction of 22,589 tCO2e, or approximately 21.9%.
2. The Company’s short-, medium-, and long-term carbon reduction strategies and action plans are as follows:
Item	Short-Term	Medium-Term	Long-Term
Energy Efficiency Improvements	1. Continue to implement energy-saving and emission-reduction improvement measures.
2. Install smart meters on electrical equipment.	1. Continue to implement energy-saving and emission-reduction improvement measures.
2. Establish an Energy Monitoring System.	1. Continue to implement energy-saving and emission-reduction improvement measures.
2. Replace equipment with high-efficiency models based on monitoring results.
Energy Transition	A designated proportion of electricity is sourced from sustainable energy		Gradually replace fuel oil equipment with natural gas systems.
Circular Economy	Waste Reduction

Difference between Implementation Status and Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons

Items	Implementation			Difference between the practices of the Company and Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and the reasons
	Y	N	Summary description
1. Establishment of ethical corporate management policies and programs
(1) 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 and measures, and commitment regarding implementation of such policy from the Board of Directors and the top management team?	V		(1)The Company has established the ethical corporate management policy approved by the Board of Directors, and clearly indicated the ethical operation policy and practice in work rules, contracts and official website, and the commitment of the board of directors and senior management level to actively implement the operating policy	No significant difference
(2) 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 ahigher 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	V		(2)The Company has established a risk assessment mechanism for dishonest conduct. The Legal Department conducts assessments during contract reviews, and the Audit Department performs regular analyses and evaluations of business activities with higher risks of dishonest behavior during routine audits. These assessments also take into account the types of misconduct outlined in Article 7, Paragraph 2 of the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies.” Relevant departments are reminded to implement preventive measures accordingly.	No significant difference
(3) 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?	V		(3)The “Guidelines for Ethical Corporate Management” and the “Guidelines for Whistleblowing” adopted by the Company have specified operating procedures, and disciplinary and appeal systems for violations in the work rules, which has been fully implemented.	No significant difference

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Items	Implementation			Difference between the practices of the Company and Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and the reasons
	Y	N	Summary description
2. Ethical Management Practice
(1) Does the company assess the ethics records of those it has business relationships with and include ethical conduct related clauses in the business contracts?	V		(1)The contracts or purchase orders signed by the Company and its counterparties have included the clauses of good faith.	No significant difference
(2) 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 the ethical corporate management policy and program to prevent unful conduct and monitor their implementation?	V		(2)The Legal Affairs Office is responsible for promoting the Company’s ethical corporate management and regular reporting of the implementation results to the board of directors. The most recent report to the Board of Directors on January 21, 2026 was on the policies, plans and implementation of honest management (including the commitment of the Board of Directors and the management to actively implement the management policies). The Audit Office also submits monthly internal audit reports to the independent directors for their review.	No significant difference
(3) Has the company established policies to prevent conflict of interests, provided appropriate communication and complaint channels, and properly implemented such policies?	V		(3)The Company has established the “Code of Ethical Conduct for Directors,” the “Code of Ethical Conduct for Employees,” and the “Rules of Procedure for Board Meetings,” all of which include provisions to prevent conflicts of interest. The Company’s annual report also discloses information regarding directors’ recusal from matters involving personal interests. In addition, a whistleblowing system and dedicated email address have been established to ensure proper implementation and compliance.	No significant difference
(4) 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 assessment and devise audit plans to audit compliance with thesystems	V		(4) To uphold ethical business practices, the Company has established effective accounting and internal control systems. Based on the risk assessment of unethical behavior, the Internal Audit Department develops relevant audit plans to conduct regular audits and random checks on the compliance of preventive programs against unethical	No significant difference

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Items	Implementation			Difference between the practices of the Company and Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and the reasons
	Y	N	Summary description
to prevent unethical conduct or hire outside accountants to perform the audits?	V		conduct. Internal audit reports are submitted monthly to the independent directors for review and are also reported to the Board of Directors on a regular basis, with the Internal Audit Department conducting regular follow-ups on the status of improvements.
(5) To promote its ethical business policy, the Company provides each employee with an employee handbook and conducts regular internal and external training sessions on ethical business practices. In 2025, the Company conducted training sessions related to ethical business practices (including courses such as "Code of Conduct: Protecting Yourself and the Company" and "Quick Guide to Intellectual Property Rights"). A total of 190 employee participants attended, accumulating 120 training hours, and 20 director participants attended, accumulating 67 training hours.	No significant difference
(5) Does the company provide internal and external ethical corporate management training programs on a regular basis?
3. Implementation of Complaint Procedures?	V		(1)The Company has stipulated the “Guidelines for Whistleblowing System” which contains specific whistleblowing and reward systems and reporting channels and has designated the Audit Office as the responsible unit.
(2)The Company has stipulated the “Guidelines for Whistleblowing System” for receiving reports, and such Guidelines include standard operating procedures for investigations, subsequent measures and related confidentiality mechanisms.
(3)In accordance with the Company's Whistleblower Policy, measures are in place to protect whistleblowers from improper treatment as a result of their reports.	No significant difference
(1) 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?
(2) 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?
(3) Has the company adopted proper measures to protect whistle-blowers from retaliation for filing complaints?	V		(3)In accordance with the Company's Whistleblower Policy, measures are in place to protect whistleblowers from improper treatment as a result of their reports.	No significant difference

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Items	Implementation
	Y	N	Summary description
4. Strengthening Information Disclosure
Does the company disclose its ethical corporate management policies and the results of their implementation on its website and the Market OpinionPost System (MOPS)?	V		The Company has disclosed the contents of regulations of its ethical corporate management on the official website and MOPs.
(https://www.fucc.com.tw)	No significant difference
5. 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 has stipulated its own ethical corporate management in accordance with the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and has implemented relevant tasks as required by such regulations, and there is no difference. | | | | |
| 6. 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):

The Company has amended its procedures for code of conduct for ethical corporate management in 2023. In the future, the Company will update and revise relevant contents on its official web site in line with the environment and law. | | | | |

Please disclose how to search the corporate governance regulations and relevant rules stipulated by the Company (if any):

The Company has established the “Guidelines for Practices of Corporate Governance” in accordance with the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”, which are available on the official site.(https://www.fucc.com.tw)

Please disclose other supporting information which allows further understanding of the implementation of the Company's corporate governance (if any): Please refer to the website (https://www.fucc.com.tw).

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11. Implementation Status of internal control system

(1) Declaration of the Internal Control System

Date: Mar. 11, 2026

The Company inspected the 2025 internal control system autonomously with the following results:

The Company is fully aware that the Board of Directors and the management are responsible for the establishment, implementation, and maintenance of the internal control system and it has been established accordingly. The purpose of its establishment was to reasonably ensure the fulfillment of effective operation and efficiency (including profit, performance, and protection of assets safety), and the reliability, timeliness, transparency and regulatory compliance of financial reports.
The internal control system design has inherent limitations. No matter how perfect such control is, it can only provide reasonable assurance of the fulfillment of the three objectives referred to above. The effectiveness of such an internal control system could be influenced by changes of the environment and other circumstances. Therefore, the Company internal control system has been designed with a self-monitoring mechanism so that corrective action will be activated immediately upon the identification of any nonconformity.
The Company has assessed the effectiveness of the design and implementation of the internal control system in accordance with criteria provided in the "Regulations Governing the Establishment of Internal Control Systems by Public Companies" (hereinafter referred to as "the Regulations"). The criteria defined in "the Regulations" include five elements that depend on the management control process: (1) environment controls, (2) risk assessment, (3) control processes, (4) information and communications, and (5) supervision. Each of the five elements is then divided into sub-categories. Please refer to "the Regulations" for details.
The Company has implemented criteria for inspection of the internal control system referred to above to ascertain its effectiveness, design and implementation.
The Company, based on the inspection results referred to above, declared (on December 31, 2025) that the internal control system, including the supervision and management of subsidiaries, is reasonably effective and achieves the objectives of operation and efficiency, the financial report is of reliability, timeliness, transparency and regulatory compliance.
The Declaration of Internal Control System is the main content of the Company's annual report and published prospectus. Any false statement and concealment of the published content referred to above involves liability set out in Article 20, Article 32, Article 171, and Article 174 of the Securities and Exchange Act.
The Declaration of the Internal Control System was resolved at a meeting of the Board of Directors on March 11, 2026 with none of the 15 attending directors expressing dissenting opinions, and the remainder all affirming the contents of this Statement.

FORMOSAN UNION CHEMICAL CORP.

Chairman: Huang, Shen-Tsai

General Manager: Lee, Hung-Te

(2) If CPA Was Engaged to Conduct a Special Audit of Internal Control System, Provide Its Audit Report: None

Resolutions reached at a meeting of shareholders or by the Board of Directors during the recent year and up to the date of publication of this annual report:
The 2025 Annual Shareholders' Meeting was held on June 16, 2025. The resolutions and implementation status are as follows:

Resolutions	Implementation Status
1. Approve the 2024 financial statements.	Approve the 2024 financial statements, and in accordance with the Company Act and other relevant laws and regulations, apply to the competent authority for inspection and announcements.
2. Approved the proposal for the distribution of 2024 earnings (cash dividend to shareholders NT$ 0.80 per Share).	Accepted the proposal for the distribution of 2024 earnings, cash dividend to Shareholders NT$ 0.80 per Share) The board of directors is authorized to set the ex-dividend base date on September 02, 2025, and the cash dividend payment date on September 26, 2025.
3. Approved the amendments to the Company’s Articles of Incorporation.	Certain provisions of the Company’s Articles of Incorporation were amended in accordance with the resolution of the Shareholders’ Meeting.
4. Approved the proposal for lifting the non-competition restrictions on the Company’s directors and their representatives.	The non-competition restrictions applicable to the Company’s directors and their representatives were lifted in accordance with the resolution of the Shareholders’ Meeting.

Important Resolutions of the Board of Directors

Board Meeting	Discussions and Resolutions
11^{th} Meeting of 18^{th} Board
Jan.14, 2025	1. Approved the payment of the year-end bonus for 2024 of the Company.
2. Approved the reassignment of corporate director representatives for the Company’s subsidiaries and investees.
12^{th} Meeting of 18^{th} Board
Mar.13, 2025	1. Approved the Company’s financial statements and business report for fiscal year 2024.
2. To approve the payment of remuneration to employees and directors for the year 2024.
3. Approval of the Company’s Earnings Distribution Plan for the Second Half of 2024.
4. Approved the amendment to the Company’s "Articles of Incorporation".
5. Approved the definition of the scope of non-managerial employees.
6. Approved the removal of non-competition restrictions for the Company’s directors and their representatives.
7. Approved the removal of non-competition restrictions for the Company’s managers.
8. Approved the convening of the Company’s 2025 Annual General Meeting of Shareholders.
9. Approved matters concerning the acceptance of shareholder proposals for the 2025 Annual General Meeting.
10. Approved the Company’s 2024 Statement of Internal Control.
13^{th} Meeting of 18^{th} Board
May.12, 2025	1. Approval of financial statements for the first quarter of 2025.
2. Approval of the establishment of a pre-approval policy for non-assurance services provided by the Company’s certifying CPA Firm.
14^{th} Meeting of 18^{th} Board
Aug. 11, 2025	1. Approved the consolidated financial statements for the second quarter of 2025.
2. Approved the earnings distribution for the first half of 2025.
3. Approved matters related to the distribution of 2024 employee and director remuneration.
4. Approved the 2025 salary adjustment.
5. Approved the ex-dividend date for 2025 cash dividends.
6. Approved the transaction limits for the procedures for acquisition or disposal of assets of the investee, J & V Energy Technology Co., Ltd.
7. Approved the acquisition of right-of-use assets through real estate lease from related parties.
8. Approved the 2024 Sustainability Report.
9. Approved the appointment of corporate director and supervisor representatives for the

Board Meeting	Discussions and Resolutions
	investee, Chang Chun Formosan Union Fine Chemical (Changshu) Co., Ltd.
10. Approved the appointment of corporate director representatives for the investee, Peiting Energy Co., Ltd.
11. Approved the appointment of corporate director representatives for the investee, Altus New Energy Co., Ltd.
15^{th} Meeting of 18^{th} Board
Nov. 12, 2025	1. Approved the consolidated financial statements for the third quarter of 2025.
2. Approved the change of the Company's certifying CPAs.
3. Approved the amendment to the Company's organizational chart.
4. Approved the amendment to the Company's "Internal Control System - Introduction".
5. Approved the amendment to certain provisions of the Company's "Internal Control System - Salary and Wage Cycle".
6. Approved the adoption of the Company's "Consumer or Customer Rights Protection Policy and Complaint Procedures".
7. Approved the amendment to the Company's "Sustainable Development Best Practice Principles".
8. Approved the amendment to the Company's "Information Security Management Plan".
9. Approved the Company's "2026 Audit Plan".

Recorded or written statements of dissent made by any Director or Supervisor to important resolutions passed by the Board of Directors during the recent year and up to the date of publication of this Annual Report: N/A.
86 -

IV. Information on CPA professional fees

Audit Fee

Unit: NT$ thousand

Accounting Firm	Name of CPA	Period Covered by CPA's Audit	Audit Fee	Non-Audit Fee	Subtotal	Remarks
Deloitte & Touche (Taiwan)	Zhuang, Wen-Yuan	Annual 2024	1,760	630	2,390	1. Non-audit fee: Employee Salary Information Checklist fee is $40 thousand, Tax stamp printing fee is $125 thousand, XBRL operation fee is $60 thousand, Certification of Business/Income Tax fee is $360 thousand, Company Registration Amendment Fee: NT$45 thousand.
	Gong, Ze-Li	Annual 2024
Deloitte & Touche (Taiwan)	Zhuang, Wen-Yuan	Annual 2025	1,760	1,158	2,918	1. Non-audit fee: Employee Salary Information Checklist fee is $40 thousand, Tax stamp printing fee is $86 thousand, XBRL operation fee is $60 thousand, Certification of Business/Income Tax fee is $420 thousand, Company Registration Amendment Fee: NT$12 thousand, Appraisal fee: NT$190 thousand, ESG assurance fee: NT$350 thousand.
	Lee, Tung-Feng	Annual 2025

Please specify the content of non-audit services: (such as tax compliance audit, assurance or other financial advisory and consultancy services)

Note: If the Company has changed CPA or Accounting Firm during the current fiscal year, the company shall report the information regarding the audit period covered by each CPA and the replacement reason. Disclose information on audit and non-audit fees paid in sequence. Non-audit fees and should explain its service content.

V. Replacement of CPA:

(1) Information on the Former Independent Auditors

Date of change	Approved by the Board of Directors on November 12, 2025.
Reason for change and explanation	In line with the internal job rotation arrangement of Deloitte & Touche.
Indicate whether the engagement was terminated or not accepted by the appointer or the auditors:	Party Circumstances	Auditor	Appointer
	Initiative to terminate the engagement	N/A	N/A
	Refusal to accept (or continue) the engagement	N/A	N/A

87 -

88 -

Audit reports issued within the most recent two years containing opinions other than unqualified opinions and the reasons	None
Whether there were disagreements with the issuer	Yes		Accounting principles or practices
			Disclosure of financial reports
			Audit scope or procedures
			Others
	No	○
	Explanation
Other disclosure items (items required to be disclosed under Subparagraphs 4 to 7 of Article 10, Paragraph 1 of the Regulations)	None

(2) Information on the Successor Independent Auditors

Name of accounting firm	Deloitte & Touche
Names of certified public accountants	Zhuang, Wen-Yuan CPA; Lee, Tung-Feng CPA
Date of appointment	Approved by the Board of Directors on November 12, 2025.
Consultations prior to appointment regarding accounting treatments, accounting principles for specific transactions, or the type of audit opinion that might be issued on the financial statements, and the results thereof	None
Written opinions of the successor auditors regarding matters of disagreement with the former auditors	None

(3) Reply from the Former Independent Auditors regarding matters under Article 10, Subparagraph 6, Items 1 and 2-3 of the Regulations: None.

VI. Information regarding the Chairman, General Manager, and Financial or Accounting Manager of the company who has worked with the CPA firm which conducts the Audit of the Company or an affiliate of said firm in the recent year: N/A

89 -

VII. Equity information in fiscal year 2025 and as of the publication date of the annual report

Any transfer of equity interests and pledge of, or change in equity interest, by a Director, managerial officer, or shareholder with a stake of more than 10 %.

Job title	Name	2025		As of Apr. 13, 2026
		Shares increase (decrease)	Pledge shares increase (decrease)	Shares increase (decrease)	Pledge shares increase (decrease)
Director	Shin Shing Chemical Corp.	—	—	—	—
Representative Director	Huang, Shen-Tsai	—	—	—	—
Vice Chairman	Huang, Sheng-Shun	—	—	—	—
Director	Hemao Venture Investment Co., Ltd.	—	—	—	—
Representative Director	Chang, Li-Chiu	—	—	—	—
Director	Huang, Teh-Lun	—	—	—	—
Director	Ever-Prosperous Multitechnologies Enterprise Ltd	—	—	—	—
Representative Director	Ko, Yen-Huei	—	—	—	—
Director	Hsin Chang Construction Corp.	—	—	—	—
Representative Director	Kuo, Chih-Chun	—	—	—	—
Director	Chi-Tong Investment Co., Ltd.	—	—	—	—
Representative Director	Huang, Cheng-Feng	—	—	—	—
Director	Lien, Te-Shih	—	—	—	—
Director	Lin, Chun-Cheng (Feb. 26, 2025 resigned)	—	—	—	—
Director	Lion Home Products (Taiwan) Co., Ltd.	—	—	—	—
Representative Director	Ho, Hao	—	—	—	—
Director	Kuo, Chen-Chih	—	—	—	—
Director	Shi, Jia-An	—	—	—	—
Director	Lee, Wen-Ling	—	—	—	—
Director	Chen, De-Fong	—	—	—	—
Director	Formosa Chemicals & Fiber Corp.	—	—	—	—
Representative Director	Wu, Shin-Chang	—	—	—	—
Independent Director	Liao, Song-Yue	—	—	—	—
Independent Director	Lin, Lai-Ti	—	—	—	—
Independent Director	Chen, Hung-Wen	—	—	—	—
Independent Director	Cho, Hsun-Jung	—	—	—	—
General Manager	Lee, Hung-Te	—	—	—	—
Deputy General Manager	Huang, Pin-Xian	—	—	—	—
Senior Deputy Assistant General Manager	Huang Jun-Zhe	—	—	—	—

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91 -

Job title	Name	2025		As of Apr. 13, 2026
		Shares increase (decrease)	Pledge shares increase (decrease)	Shares increase (decrease)	Pledge shares increase (decrease)
Deputy General Manager	Lin, Yi-Feng	—	—	—	—
General Legal Counsel	Tseng, Hsiao-Chien	—	—	—	—
Factory/ Deputy Assistant General Manager	Tseng, Chih-Ching (Jan 17, 2025 take office)	—	—	—	—
Factory/ Deputy Assistant General Manager	Yu, Yu-Xin	—	—	—	—
Accounting Supervisor	Chen, Wei-Chun	—	—	—	—
Financial Supervisor	Lin, Li-Jen	—	—	—	—

Note : Director Lin Chun-Cheng resigned from his position as Director on February 26, 2025.

2. Shares Trading with Related Parties

Name (Note 1)	Reason for Transfer (Note 2)	Date of Transaction	Transferee	Relationship between Transferee and Directors, Supervisors, Managers and Major Shareholders over 10%	Shares	Transaction Price (NT$)
	N/A

Note 1 : To fill in the name of company’s Directors, Supervisors, Managers and Major Shareholders over 10%.
Note 2 : To fill in acquire or dispose.

3 Shares Pledge with Related Parties

Name (Note 1)	Reason for Pledge (Note 2)	Date of Transaction	Transferee	Relationship between Transferee and Directors, Supervisors, Managers and Major Shareholders	Shares	Shares holding %	Shares Pledged %	Pledged Amount
	N/A

Note 1 : To fill in the name of company’s Directors, Supervisors, Managers and Major Shareholders over 10%.
Note 2 : To fill in pledge or redeem

VIII. Top 10 shareholders and their relationships
April 13, 2026

Name (Note 1)	Current shareholding		Spouse and minor children's shareholding		Shareholding in name of others		Name, relationship of top 10 shareholders being the related party as spouse or kin within the second tier under the Civil Code		Note
	Quantity of shares	Share holding	Quantity of shares	Share holding	Quantity of shares	Share holding	Name	Relation- ship
Ho Tung Chemical Corp. Representative / Chang, Li-Chiu	29,234,040	6.13%	—	—	—	—	—	—	—
Chi-Tong Investment Co., Ltd. Representative / Chang, Mei-Feng	28,924,000	6.06%	—	—	—	—	Shin Shing Chemical Corp. Representative / Huang, Shen-Tsai	spouse	—
Eversoft Co., Ltd. Representative / Lin, Fang-Ju	23,680,145	4.96%	—	—	—	—	—	—	—
Shin Shing Chemical Corp. Representative / Huang, Shen-Tsai	18,824,000	3.95%	—	—	—	—	Chi-Tong Investment Co., Ltd. Representative / Chang, Mei-Feng	spouse	—
Old Pine Investment Co., Ltd. Representative / Huang, Sheng-Shun	15,042,749	3.15%	—	—	—	—	Shin Shing Chemical Corp. Representative / Huang, Shen-Tsai	brother	—
Formosa Chemicals & Fiber Corp. Representative / Hong, Fu-Yuan	14,723,422	3.09%	—	—	—	—	—	—	—
Lion Home Products (Taiwan) Co., Ltd. Representative / Tsuyoshi Ichitani	11,571,347	2.43%	—	—	—	—	—	—	—
Chuangyou Investment Co., Ltd. Representative / Ko, Chang-Chi	10,420,081	2.18%	—	—	—	—	—	—	—
Kuo Chia Fu Investment Corp. Representative / Kuo, Chih-Chun	6,144,601	1.29%	—	—	—	—	—	—	—
Kuo Chen, Chu-Chih	5,609,302	1.18%	5,484,818	1.15%	—	—	—	—	—

Note 1: Name of the top-10 shareholders must be listed respectively. For institutional shareholders, the title of such institutional shareholder and the name of the representative(s) shall be listed respectively.
Note 2: The percentage of shareholding shall be calculated by taking into account the shares held by the shareholder, his/her spouse, children of minor age, and other persons holding shares in his/her name.
Note 3: For the shareholders referred to above including legal person and natural person, shall have the relationship disclosed in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms.
Note 4: Certain shareholders are not insiders required to file disclosures with the Company; therefore, information regarding shares held by their spouses, minor children, or held in the names of others is not available.

IX. The number of shares held by the Company and Company Directors, Supervisors, managerial officers and the entities directly or indirectly controlled by the Company in a single company, and calculating the consolidated shareholding percentage of the above categories.

Unit: shares/ %

Long-term Investment	Invested by the Company		Invested by Directors, Supervisors, Management, and enterprises controlled by the Company directly or indirectly		Combined Investment
	Shares	%	Shares	%	Shares	%
Hershey Environmental Technology Co., Ltd.	50,000,000	100.00%	—	—	50,000,000	100.00%
United Performance Materials Corporation	72,202,200	80.25%	3,108,489	3.46%	75,310,689	83.71%
Pacific Storage Tank Co., Ltd.	900	100.00%	—	—	900	100.00%
Singapore Kanghua Industrial Co., Ltd.	4,927,717	19.74%	—	—	4,927,717	19.74%
Great Victory Chemical Industry Co., Ltd.	19,800,000	100.00%	—	—	19,800,000	100.00%
Fusugar Industry Corp.	97,395,974	90.52%	4,471,204	4.15%	101,867,178	94.67%
Soft Industry Corp.	—	46.20%	—	—	—	46.20%
Chang Chun Formosan Union Fine Chemical (Changshu) Co., Ltd.	—	50.00%	—	—	—	50.00%
Defia Co., Ltd.	300,000	20.00%	224,267	14.95%	524,267	34.95%
J & V Energy Technology Co., Ltd.	6,043,318	4.38%	—	—	6,043,318	4.38%
Shenghua Development Co., Ltd.	36,000	10.00%	—	—	36,000	10.00%
Pei-Ting Energy Co., Ltd.	350,000	35.00%	—	—	350,000	35.00%
TXOne Networks Inc.	150,000	0.22%	—	—	150,000	0.22%
Seetel New Energy Co., Ltd.	694,000	1.30%	—	—	694,000	1.30%
Skymizer Taiwan Inc.	82,500	1.83%	—	—	82,500	1.83%
Dunqian Smart Co., Ltd	200,000	0.06%	—	—	200,000	0.06%
Altus New Energy Co., Ltd.	175,000	35.00%	—	—	175,000	35.00%
Check Inn Hospitality Management Corporation	100,000	0.30%	—	—	100,000	0.30%
Greenet Co., Ltd.	15,000	0.10%	—	—	15,000	0.10%

III. Capital Overview

I. Capital and shares

Source of Capital

Year/Month	Issuing Price (NT$)	Authorized Capital		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of Capital	Capital increased by assets other than cash	Others
1973/06	10	5,000,000	50,000,000	1,250,000	12,500,000	Founded	—
1976/03	10	11,000,000	110,000,000	6,600,000	66,000,000	capital increase 53,500,000	—
1977/04	10	12,000,000	120,000,000	12,000,000	120,000,000	capital increase 54,000,000	—
1978/05	10	13,200,000	132,000,000	13,200,000	132,000,000	surplus capitalization 12,000,000	—
1979/06	10	18,480,000	184,800,000	18,480,000	184,800,000	surplus capitalization 52,800,000	—
1980/05	10	30,492,000	304,920,000	30,492,000	304,920,000	surplus capitalization 120,120,000	—
1988/05	10	38,326,800	383,268,000	38,326,800	383,268,000	surplus capitalization 76,230,000
Employee bonus capitalization 2,118,000	—	(77)Tai-Tsai-Cheng (1) No.08710 dated July 21, 1988
1989/04	10	48,077,800	480,778,000	48,077,800	480,778,000	surplus capitalization 95,817,000
Employee bonus capitalization 1,693,000	—	(78)Tai-Tsai-Cheng (1) No.25562 dated July 20, 1989
1989/08	10	55,077,800	550,778,000	55,077,800	550,778,000	Cash Capital Increase 70,000,000	—	(78)Tai-Tsai-Cheng (1) No.02609 dated Dec 30, 1989
1990/06	10	77,077,800	770,778,000	60,585,580	605,855,800	surplus capitalization 55,077,800	—	(79)Tai-Tsai-Cheng (1) No.01851 dated Aug 02, 1990
1991/05	10	77,077,800	770,778,000	69,673,417	696,734,170	surplus capitalization 30,292,790
capital reserve capitalization 60,585,580	—	(80)Tai-Tsai-Cheng (1) No.01606 dated Jul 19, 1991
1992/05	10	89,908,100	899,081,000	80,285,394	802,853,940	surplus capitalization 44,590,980
capital reserve capitalization 59,919,140
Employee bonus capitalization 1,609,650	—	(81)Tai-Tsai-Cheng (1) No.01630 dated Jul 16, 1992
1993/06	10	90,319,300	903,193,000	90,010,973	900,109,730	surplus capitalization 36,128,430
capital reserve capitalization 60,214,050
Employee bonus capitalization 913,310	—	(82) Tai-Tsai-Cheng (1) No.30875 dated July 22, 1993
1994/06	10	133,100,000	1,331,000,000	101,032,941	1,010,329,410	surplus capitalization 72,008,780
capital reserve capitalization 36,004,390
Employee bonus capitalization 2,206,510	—	(83)Tai-Tsai-Cheng (1) No.32407 dated July 23, 1994
1995/06	10	133,100,000	1,331,000,000	114,608,341	1,146,083,410	surplus capitalization 131,342,820
Employee bonus capitalization 4,411,180	—	(84)Tai-Tsai-Cheng (1) No.38143 dated Jun 28, 1995
1996/06	10	133,100,000	1,331,000,000	126,351,163	1,263,511,630	surplus capitalization 114,608,340
Employee bonus capitalization 2,819,880	—	(85)Tai-Tsai-Cheng (1) No.41472 dated Jul 03, 1996
1997/06	10	157,600,000	1,576,000,000	139,226,974	1,392,269,740	surplus capitalization 126,351,160
Employee bonus capitalization 2,406,950	—	(86)Tai-Tsai-Cheng (1) No.51337 dated Jun 27, 1997

94 -

Year/Month	IssuingPrice(NTS)	Authorized Capital		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of Capital	Capital increased by assets other than cash	Others
1998/05	10	157,600,000	1,576,000,000	156,470,587	1,564,705,870	surplus capitalization167,072,370Employee bonus capitalization 5,363,760	—	(87)Tai-Tsai-Cheng (1) No.49976 dated Jun 09, 1998
1999/05	10	185,100,000	1,851,000,000	172,500,549	1,725,005,490	surplus capitalization 131,435,290capital reserve capitalization 25,035,290Employee bonus capitalization 3,829,040	—	(88)Tai-Tsai-Cheng (1) No.53488 dated Jun 08, 1999
2000/05	10	205,690,000	2,056,900,000	190,248,871	1,902,488,710	surplus capitalization 160,425,510capital reserve capitalization12,075,040Employee bonus capitalization 4,982,670	—	(89)Tai-Tsai-Cheng (1) No.49055 dated Jun 07, 2000
2001/05	10	205,690,000	2,056,900,000	197,084,754	1,970,847,540	surplus capitalization 55,172,170capital reserve capitalization11,414,930Employee bonus capitalization 1,771,730	—	(90)Tai-Tsai-Cheng (1) No.135134 dated Jun 05, 2001
2002/07	10	205,690,000	2,056,900,000	205,016,367	2,050,163,670	surplus capitalization76,863,050Employee bonus capitalization 2,453,080	—	Tai-Tsai-Cheng (1) No.0910137534 dated Jul 09, 2002
2003/07	10	228,370,000	2,283,700,000	211,362,496	2,113,624,960	surplus capitalization61,504,910Employee bonus capitalization 1,956,380	—	Tai-Tsai-Cheng (1) No.0920130358 dated Jul 08, 2003
2004/07	10	228,370,000	2,283,700,000	217,905,065	2,179,050,650	surplus capitalization63,408,750Employee bonus capitalization 2,016,940	—	Cheng-Chi (1) No. 0930129119 dated Jul 06, 2004
2005/06	10	240,370,000	2,403,700,000	231,396,634	2,313,966,340	surplus capitalization130,743,040Employee bonus capitalization 4,172,650	—	Ching-Kuan-Cheng (1) No.0940125861 dated Jun 28, 2005
2006/07	10	300,000,000	3,000,000,000	240,947,900	2,409,479,000	surplus capitalization92,558,660Employee bonus capitalization 2,954,000	—	Ching-Kuan-Cheng (1) No.0950128225 dated Jul 04, 2006
2007/06	10	300,000,000	3,000,000,000	250,893,409	2,508,934,090	surplus capitalization96,379,160Employee bonus capitalization 3,075,930	—	Ching-Kuan-Cheng (1) No.0960031913 dated Jun 25, 2007
2008/01	10	300,000,000	3,000,000,000	274,832,654	2,748,326,540	Acquired (Great Victory Chemical Industry Co., Ltd.) capitalization 239,392,450	—	Ching-Kuan-Cheng (1) No.0960075464 dated Jan 17, 2008
2008/07	10	500,000,000	5,000,000,000	292,983,305	2,929,833,050	surplus capitalization175,892,900Employee bonus capitalization 5,613,610	—	Ching-Kuan-Cheng (1) No.0970032584 dated Jul 01, 2008
2008/11	10	500,000,000	5,000,000,000	301,799,175	3,017,991,750	Acquired (Great Victory Chemical Industry Co., Ltd.) capitalization 88,158,700	—	Ching-Kuan-Cheng (1) No.0970057401 dated Nov 06, 2008
2009/07	10	500,000,000	5,000,000,000	309,344,154	3,093,441,540	surplus capitalization75,449,790	—	Ching-Kuan-Cheng-Fa-Tze No.0980033422 dated Jul 06, 2009
2010/07	10	500,000,000	5,000,000,000	340,278,569	3,402,785,690	surplus capitalization309,344,150	—	Ching-Kuan-Cheng-Fa-Tze No.0990039172 dated Jul 27, 2010
2010/08	10	500,000,000	5,000,000,000	365,278,569	3,652,785,690	Capital increase250,000,000	—	Ching-Kuan-Cheng-Fa-Tze No.0990039602 dated Aug 04, 2010
2011/07	10	500,000,000	5,000,000,000	390,848,068	3,908,480,680	surplus capitalization255,694,990	—	Ching-Kuan-Cheng-Fa-Tze No.1000031768 dated Jul 08, 2011
2012/07	10	500,000,000	5,000,000,000	429,932,874	4,299,328,740	surplus capitalization390,848,060	—	Ching-Kuan-Cheng-Fa-Tze No.1010029789 dated Jul 05, 2012
2016/04	10	500,000,000	5,000,000,000	430,833,570	4,308,335,700	Conversion of corporate bonds in the first quarter of 2016	—	Ching-Shou-Shang-Tze No. 10501077010 dated Apr 15, 2016

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Year/Month	IssuingPrice (NT$)	Authorized Capital		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of Capital	Capital increased by assets other than cash	Others
2016/07	10	500,000,000	5,000,000,000	434,209,430	4,342,094,300	Conversion of corporate bonds in the second quarter of 2016	—	Ching-Shou-Shang-Tze No. 10501175750 dated Jul 22, 2016
2016/10	10	500,000,000	5,000,000,000	437,784,658	4,377,846,580	Conversion of corporate bonds in the third quarter of 2016	—	Ching-Shou-Shang-Tze No. 10501246890 dated Oct 18, 2016
2017/01	10	500,000,000	5,000,000,000	444,951,285	4,449,512,850	Conversion of corporate bonds in the fourth quarter of 2016	—	Ching-Shou-Shang-Tze No. 10601008180 dated Jan 20, 2017
2017/04	10	500,000,000	5,000,000,000	451,102,758	4,511,027,580	Conversion of corporate bonds in the first quarter of 2017	—	Ching-Shou-Shang-Tze No. 10601051160 dated Apr 26, 2017
2017/07	10	500,000,000	5,000,000,000	472,019,402	4,720,194,020	Conversion of corporate bonds in the second quarter of 2017	—	Ching-Shou-Shang-Tze No. 10601104260 dated Jul 25, 2017
2017/10	10	500,000,000	5,000,000,000	489,817,453	4,898,174,530	capital reserve capitalization177,980,510	—	Ching-Shou-Shang-Tze No. 10601135100 dated Oct 02, 2017
2017/10	10	900,000,000	9,000,000,000	490,849,670	4,908,496,700	Conversion of corporate bonds in the third quarter of 2017	—	Ching-Shou-Shang-Tze No. 10601144490 dated Oct 18, 2017
2018/01	10	900,000,000	9,000,000,000	490,925,940	4,909,259,400	Conversion of corporate bonds in the fourth quarter of 2017	—	Ching-Shou-Shang-Tze No. 10701005570 dated Jan 22, 2018
2018/04	10	900,000,000	9,000,000,000	492,137,794	4,921,377,940	Conversion of corporate bonds in the first quarter of 2018	—	Ching-Shou-Shang-Tze No. 10701042060 dated Apr 27, 2018
2018/07	10	900,000,000	9,000,000,000	492,307,284	4,923,072,840	Conversion of corporate bonds in the second quarter of 2018	—	Ching-Shou-Shang-Tze No. 10701090590 dated Jul 25, 2018
2018/10	10	900,000,000	9,000,000,000	494,159,095	4,941,590,950	Conversion of corporate bonds in the third quarter of 2018	—	Ching-Shou-Shang-Tze No. 10701132570 dated Oct 24, 2018
2019/01	10	900,000,000	9,000,000,000	499,351,752	4,993,517,520	Conversion of corporate bonds in the fourth quarter of 2018	—	Ching-Shou-Shang-Tze No. 10801008120 dated Jan 23, 2019
2019/04	10	900,000,000	9,000,000,000	502,122,392	5,021,223,920	Conversion of corporate bonds in the first quarter of 2019	—	Ching-Shou-Shang-Tze No. 10801044100 dated Apr 17, 2019
2019/09	10	900,000,000	9,000,000,000	477,016,272	4,770,162,720	Capital reduction 251,061,200	—	Ching-Kuan-Cheng-Fa-Tze No.1080324734 dated Aug 07, 2019

Note 1 : The capital increase shall be marked with the effective (approved) date and document number.
Note 2 : Those who issue shares for less than the par value shall be marked in a prominent way.
Note 3 : Where currency claims and technology are used to offset the share funds, it shall be stated, and the type and amount of the offset shall be added.
Note 4 : If it is a private placement, it should be marked in a prominent way.

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Type of share

Type of share	Authorized Capital Stock
	Outstanding Shares (listed)	Unissued Shares	Total
Common stock	477,016,272
(Listed stocks)	422,983,728	900,000,000	—

II. Major Shareholders (Top 10 shareholders or with Shareholdings greater than 5%)

On the Book closure date: April 13, 2026

Major Shareholders	Total shares owned (Shares)	Shareholding ratio (%)
Ho Tung Chemical Corp.	29,234,040	6.13%
Chi-Tong Investment Co., Ltd.	28,924,000	6.06%
Eversoft Co., Ltd.	23,680,145	4.96%
Shin Shing Chemical Corp.	18,824,000	3.95%
Old Pine Investment Co., Ltd.	15,042,749	3.15%
Formosa Chemicals & Fiber Corp.	14,723,422	3.09%
Lion Home Products (Taiwan) Co., Ltd.	11,571,347	2.43%
Chuangyou Investment Co., Ltd.	10,420,081	2.18%
Kuo Chia Fu Investment Corp.	6,144,601	1.29%
Kuo Chen, Chu-Chih	5,609,302	1.18%

III. The Company's Policies regarding Dividends and Implementation Status

1. Dividends policies

The Company may distribute profits or allocate losses after the end of each semi-annual accounting period. If there is a profit at the end of a semi-annual accounting period, it must first be used to offset accumulated losses, then to estimate and reserve for taxes, employee compensation, and director compensation. Next, 10% of the remaining profit should be appropriated as a statutory reserve, unless the statutory reserve has already reached the total amount of the Company's paid-in capital, in which case this requirement does not apply. Additionally, any special reserve required by law or regulatory authorities should be appropriated or reversed. If there is still profit remaining, this amount, combined with the undistributed earnings from the previous half-year, will be used to prepare a profit distribution proposal by the Board of Directors. If the distribution is to be made through the issuance of new shares, it must be approved by the shareholders' meeting; if the distribution is to be made in cash, it must be decided by the Board of Directors.

In accordance with Article 240 of the Company Act, the Company authorizes the Board of Directors to make a resolution with the attendance of more than two-thirds of the directors and the majority of the attending directors. This resolution allows for the distribution of dividends and bonuses or the entire or part of the statutory reserve and capital reserve

stipulated under Article 241 of the Company Act, to be issued in cash. This action will subsequently be reported to the shareholders' meeting.

The Company may, based on the overall capital budget plans, distribute 40% to 60% of the surplus in the form of stock dividends and the rest in the form of cash dividends to retain the necessary funds. If there are no major capital budget plans for a specific fiscal year or the working capital requires to be replenished, the surplus may be distributed fully in the form of cash dividends. In other words, if a large amount of capital is required for the expansion and construction of plants during a specific fiscal year, the surplus may be distributed fully in the form of stock dividends. The aforesaid surplus distribution shall be handled by the board of directors who shall draft a surplus distribution plan for submission to the shareholders' meeting for resolution prior to the distribution.

Dividend distribution proposal submitted to the shareholders' meeting

On August 11, 2025, the Company's Board of Directors resolved not to distribute the earnings for the first half of 2025.

On March 11, 2026, the Board resolved to distribute a cash dividend of NT$1.00 per share from the earnings of the second half of 2025. However, this dividend distribution plan is still pending approval by the shareholders' meeting.

IV. The impact of the proposal of issuance of bonus shares to be reviewed by the shareholders' meeting on the Company's business operating performance and EPS

Not applicable because there was no proposal of issuance of bonus shares to be reviewed by the shareholders' meeting of this fiscal year and the Company was not required to prepare financial forecasting.

V. Employee Compensation and Remuneration for Directors and Supervisors

The percentage and scope of the employees' compensation and the remuneration of directors and supervisors as stated in the Company's articles of association:

(1) The Company shall allocate 2.5% of its annual profit (if any) as the employees' wages (of which no less than 0.3% of the profit shall be distributed to frontline employees) and 2.5% (maximum) of such profit as the directors' remuneration. However, the Company shall first retain a sufficient amount of such profit for covering any cumulative losses.

The distribution of employees' compensation may be in the forms of stocks or cash based on the resolution (which shall be reported to the shareholders) made by a meeting of the board of directors where more than two-thirds of the directors present and more than half of the present directors agree on such distribution. Such wage may be distributed in the form of stocks or cash to the employees of the affiliates who satisfy certain requirements.

(2) The calculation basis for the estimated amount of employees' compensation and the remuneration of directors and supervisors of the current period, the calculation basis for the number of shares for distribution of stock dividends, and the accounting treatment when there is a difference between the estimated amount and the actual distributed amount:

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The Company’s estimated amount for distribution of employees' compensation and remuneration of directors for 2025 was NT$37,415,842 in total. The amount was proportionally estimated based on the current year's pro rata portion of the pre-tax income before the distribution of employees' and directors' remuneration, and was recognized as the operating cost and expense for 2025. If there is any difference between the actual distributed amount (determined by the board of directors) and the estimated number of directors, changes in accounting estimates would be adopted. If the above employee bonus is fully distributed in the form of stocks, the number of shares for distribution in the form of stock dividends shall be calculated based on the closing price on the last date prior to the resolution of the meeting of the board of directors for FY2026 with the consideration of the effects of ex-dividends.

(3) The proposed distributed amount of employees’ compensation approved by the board of directors:

a. The amount for distributed cash/stock compensation for employees and the remuneration of directors:

The amount of the Company’s distributed employees' compensation and directors’ remuneration determined by the resolution of the board of directors for 2026 has no different from the original estimated amount of NT$37,415,842 specified in the financial statements of 2025.

b. The proposed distributed amount of employees' compensation in the form of stocks and its proportion of the total amount of net profit after tax and total employee wage specified in the individual financial report for the current period: Not applicable.

(4) The actual distribution of employee dividends and remuneration of directors and supervisors for the previous fiscal year:

The following table indicates the actual distribution of the Company’s surplus for the employees’ and directors’ remuneration in 2024:

	2024
	Resolution by the board of directors
Cash dividends for employees	$ 22,607,175
Directors’ remuneration	$21,530,642

The 2025 employees' and directors' remuneration as resolved by the Board of Directors shows no discrepancy from the amount of NT$44,137,817 originally recognized in the 2024 financial statements.

VI. Buy-back of Treasury Stock: None.

VII. Issuance of Corporate Bonds: None.

VIII. Issuance of Preferred Stock, Global Depositary Receipts, Employee Stock Options: None.

IX. Issuance of New Shares in Connection with Mergers or Acquisitions or with Acquisitions of Shares of Other Companies: None.

X. Financing Plans and Implementation

(1) Finance Plans :
For each uncompleted public issue or private placement of securities, and for such issues and placements that were completed in the most recent three years but have not yet fully yielded the planned benefits : N/A

(2) Implementation
Regarding the purpose of each plan mentioned in the preceding paragraph, analyze item by item as of the quarter before the publication date, its implementation status and the comparison with the original expected benefits: N/A

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IV. Operation Overview

I. Operation Summary

Business Scope

(1) The main content of the business:
Manufacturing, processing, and trading of Alkylbenzenes, Normal olefins, Alkylphenols, Hydrocarbon resins, and their derivatives, and other related businesses and investments.

(2) Proportions of sales from each of the major products (units):
The Company’s major business is the manufacture and sale of the following products and derivatives: Alkylbenzene, Alkyl Phenol, Alkyl Benzene Sulfonic Acid, and Hydrocarbon Resin. The proportions of sales from each of the units are as follows:

Unit: NT$1,000; %

Itemsthems	FY2025		FY2024
	Amount	%	Amount	%
Alkylation Units (Note 1)	7,286,700	80.88	8,465,662	82.15
Resin Units (Note 2)	1,121,197	12.45	1,274,252	12.37
Agrochemicals and Other Units (Note 3)	601,260	6.67	564,573	5.48
Total	9,009,157	100.00	10,304,487	100.00

Note 1: The Alkylation units mainly produce products such as Alkylbenzene and Alkyl phenol.
Note 2: The resin unit mainly produces C9 hydrocarbon resin and hydrogenated C9 hydrocarbon resin.
Note 3: The products of other units mainly include the production and sales of Agrochemicals and the trading of sugar products.

(3) The Company’s current products:
(a) Alkylbenzene: It is the essential upstream raw material for household laundry powder and detergents.
(b) Alkylbenzene sulfonic acid: The processed Alkylbenzene becomes the main component of detergent, which is widely used in household cleaning powder such as laundry powder, detergent cleaners.
(c) Alkyl phenol: It is the upstream raw material of surfactant and lubricant additive and is mainly used in industrial detergents, antioxidants, advanced printing ink resins, curing agents, and lubricant formulations.
(d) C9 hydrocarbon resin/Hydrogenated hydrocarbon resin: It is the upstream raw material for adhesives and hot-melt adhesives, and can provide enhanced viscosity and wetting features.
(e) Others: Sales of Agrochemicals and trading of sugar products.

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2. Overview of the Industry

(1) Current Status of the Industry and its Development

The Company’s major business is the manufacture and sale of the following products and derivatives: Alkylbenzene, Alkyl phenol, Alkylbenzene Sulfonic Acid, and hydrocarbon resin. Among them, Alkylbenzene and Alkylbenzene Sulfonic Acid are the necessary upstream raw material for household laundry powder and detergents. Alkyl phenol is the upstream raw material of surfactants and lubricant additives for industrial detergents and lubricants. Hydrocarbon resin is the upstream raw material of adhesives and hot-melt adhesives and can provide enhanced viscosity and wetting features. The status of the petrochemical industry to which the Company belongs and the related industry operational risks are described as follows:

(a) Alkylbenzene

Alkylbenzene is currently the most widely used upstream raw material in the detergents for household chemicals. It can be divided into the types of Linear Alkylbenzene (LAB) and Branched Alkylbenzene (BAB) based on the molecular geometry. The detergents made of LAB are called soft detergent because the wastewater it generates is easily biodegradable; while those made of BAB are referred to as hard detergent because they are not easily degraded biologically. Due to environmental protection considerations, hard detergent products are only allowed to be used in very few countries.

Alkylbenzene is mainly used in products such as detergents and laundry powder. In addition, because of its low condensation point and good low-temperature fluidity, it has good compatibility with mineral oil and synthetic hydrocarbon oil, which allows it to be gradually adopted in the fields of industrial lubricants such as Alkylbenzene oil for electrical appliances, transformers, switches of electrical appliances, and synthetic Alkylbenzene oil for the refrigeration unit, etc.

The Company’s production volume of Alkylbenzene accounts for 99% of the total volume in Taiwan, of which approximately 70% is Linear Alkylbenzene and 30% is Branched Alkylbenzene.

Due to the growing demand for industrial and household detergent products, the global Alkylbenzene market has developed slowly but steadily in the past few years. Among them, the main growth momentum comes from the improvement of living standards in emerging markets such as Southeast Asia and Central and South America. In particular, the Asia-Pacific region will be the region with the highest consumption of Alkylbenzene in the world. Its growth rate would also be the highest and is expected to become another driving force for market development. However, the fluctuation of crude oil prices in the international market remains a major concern for Alkylbenzene manufacturers. The future development of the Alkylbenzene market is expected to move toward the development of more diversified products and the commercialization of specific applications.

(b) Alkylphenol

The industrial application of Nonylphenol began in the 1950s. It is mainly used in nonionic surfactants and modified Phenolic Formaldehyde Resin, and for few cases, in the production of anionic surfactants, lubricant additives, and other products. Overall, more than 70% of globally produced Nonylphenol is used in various surfactants, with the remainder applied in cleaning agents, mineral processing agents, and other industrial uses.

In addition to being used in various surfactants, Nonylphenol can produce many application products after being chemically synthesized with other petrochemicals intermediate raw materials, such as to produce TNPP (acquired from the esterification with phosphorus trichloride) for the antioxidant for natural and synthetic rubber, or nonylphenol formaldehyde resin (acquired from syncretization with formaldehyde solution under an alkaline environment) for the high-grade copper-clad laminate of PCB due to its high-frequency resistance, brightness, flexibility, and water resistance. Therefore, the fields covered by application products of Nonylphenol are quite broad.

Currently, the global Nonylphenol manufacturers with an annual production volume of more than 10,000 metric tons are mainly located in the United States, Poland, and China. The aforementioned developed countries and China are also the main markets of the demand for Nonylphenol. The major Taiwanese manufacturers of the Nonylphenol industry are FUCC and China Man-Made Fiber Corporation (CMFC), both of which are mainly exporting their products.

Dodecyl phenol is a relatively new Alkylphenol product with a smaller volume of global supply. It is mainly used in the lubricating oil industry and is a lubricating oil additive formulation that can be manufactured as a single agent available to be further mixed as a complex agent.

Based on the chemical properties, hydrocarbon resin can be divided into three categories respectively known as aliphatic resin, aromatic resin, and hydrogenated hydrocarbon resin.

i. Aliphatic resin (C5 resin as the representative product)

Aliphatic resin is mainly produced by using C5 diene (piperylene) as the raw materials. Since the raw materials are by-products of the separation process of isoprene, those manufacturers with the ability to separate isoprene are usually able to produce C5 hydrocarbon resin. Because C5 hydrocarbon resin has good compatibility with SIS, SBS, SEBS, SEPS, and other styrene polymers, natural and synthetic rubber, and EVA, it is a good additive for adhesives and is mainly used in the adhesive and sealant industry. It is mostly used for the production of products containing hot-melt adhesives and pressure-sensitive adhesives (PSA), such as tapes or labels. In recent years, C5 hydrocarbon resin has begun to gradually replace natural resin tackifiers (such as rosin or terpene resin) and take the major market position due to its better and more stable peel and fast

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adhesion, moderate melt viscosity, good heat resistance, and lower prices.

ii. Aromatic resin (C9 hydrocarbon resin as the representative product)

Aromatic resin is refined from raw materials such as vinyl toluene, styrene, and indacene. The vinyl toluene and indacene are all by-products in the pyrolysis process of Ethylene, only those manufacturers with Ethylene pyrolysis equipment can produce such products and therefore, its supply is limited by the output volume of the Ethylene pyrolysis plant. Because it is composed of Olefins or Cycloolefins containing nine carbon atoms for polymerization, it is also called C9 hydrocarbon resin. C9 hydrocarbon resin has the features of low acid value, good miscibility, low melting point, high water resistance, and proper alcohol and chemical resistance, and is widely used in adhesives (hot-melt adhesives) and printing inks, as well as serving as the modifier for coating material industry. In recent years, as the prices of natural resin raw materials such as rubber and tall oil rosin esters have risen, C9 hydrocarbon resin has gradually expanded its market demand with relatively low production costs.

iii. Hydrogenated hydrocarbon resin

Hydrogenated hydrocarbon resin is a compound acquired from the hydrogenation reaction of a hydrocarbon resin. It is mainly used for providing additional viscosity and wetting and is currently used in products such as diapers, maxi pads, and hot-melt adhesives. Among them, the hot-melt adhesive has the advantages of environmentally friendly, safe, rapid curing, and suitable for automated production, which makes it become one of the fastest-growing adhesive products. In the past, hydrogenated hydrocarbon resin was mostly used as an adhesive for sneakers and maxi pads, etc., and because of its colorless and odorless properties, it can be used as a plastic film material for food packaging or the substitute for natural resin.

The Company on July 31, 2012 (the base date) transferred the business of its hydrogenated hydrocarbon resin units to the affiliate UPM who is also responsible for hydrogenation and manufacturing of the relevant products. Hence, the Company currently uses UPM to dedicate to the production and sales of C9 hydrocarbon resin and hydrogenated hydrocarbon resin products. C9 hydrocarbon resin and hydrogenated hydrocarbon resin are produced by the hydrogenation process of a hydrocarbon resin. The Company's hydrocarbon resin business is expected to maintain stable growth due to the limited supply and the rising prices of natural resources such as rosin, the increasingly extensive high-end applications of hydrogenated hydrocarbon resin, and the rapidly growing demand for hot-melt adhesives.

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(2) The relationship of the industry's up-, mid-, and downstream

(a) Alkylbenzene

Alkylbenzene is within the midstream of the household chemical detergent industry. It is critical and irreplaceable for industrial development. Its upstream industry is the petrochemical industry. The refinery provides kerosene and produces n-alkanes after extraction and refining. After the Company obtains n-alkane raw materials, it will process and produce products such as Alkylbenzene or Alkylbenzene Sulfonic Acid, which are then supplied to manufacturers in the downstream detergent product industry, such as P&G, Unilever, and Kao.

(b) Alkylphenol

Alkylphenol is within the midstream of the industrial detergents and lubricants industry. The upstream is also the petrochemical industry. After naphtha is extracted from crude oil at refineries, Propylene, Benzene, Cumene, and Phenol would be extracted subsequently. The Company purchases phenolic raw materials and then adds Nonene or Dodecene to synthesize Nonylphenol or Dodecylphenol supplied to surfactant and lubricant additive manufacturers. The final products are industrial detergents and lubricants.

Hydrogenated hydrocarbon resin is a solid or liquid by-product formed by polymerization of mono- and diene components from distillation of the five-carbon (C5) and nine-carbon (C9) compounds produced in the pyrolysis process of naphtha for refining ethylene. Therefore, its upstream is the petrochemical industry. As far as downstream industries are concerned, hydrogenated hydrocarbon resins are widely used by-products such as adhesives and coating materials. The final products include diapers, sticky notes, and road marking paints.

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(3) Trends of development of products

(a) Application development trend in terminal products

With the development of modernization, in daily life, people will not be willing to spend too much time on household cleaning chores, but the requirements for household cleanliness are gradually increasing. Therefore, the currently available conventional detergents can no longer meet the living requirements of people of the modern days. In the future, there would be two types of development for detergents. One is the comprehensive development which endows the detergent products with the feature of comprehensive cleaning functions to remove multiple types of stains in various situations at the same time; the other is the development of special-purpose which tailors the detergent products to effectively remove stains and pathogens generated from specific conditions. From the above description, one could know that either of the development would further improve the functions of the detergent products.

(b) Future trends for the composition of product raw materials

Generally speaking, the conventional detergent products are mainly chemically synthesized which replaced soap after WWI. These products are usually composed of surfactants, solvents, and additives. Because of the good cleaning effects and convenience, they have become necessary consumer products in modern society ranging from industrial and mining enterprises to household cleaning. However, with the development of society, some problems with synthetic detergent are gradually being questioned. Some of the raw materials of conventional detergent products come from by-products of the petrochemical industry, which would have a certain impact on human health. Therefore, the development of healthy, green, environmentally friendly detergent products has become the future development trend.

(4) Competition of the products

The petrochemical industry uses naphtha or natural gas as raw materials to produce Ethylene, Propylene, Benzene, and other basic raw materials via the pyrolysis of naphtha, and intermediate raw materials for plastics, rubber, and fibers via additional processing. The downstream products of the petrochemical industry are widely used for daily-life purposes as well as construction materials, auto parts, and high-tech product parts, etc. Therefore, the petrochemical industry is a basic industry. The Company's products are mainly used for laundry powder and detergent, and as for the

conditions of product competition, analysis for the three major types of products of the Company is presented below:

(a) Alkylbenzene

The alkylbenzene produced by the Company holds a domestic market share of up to 99%. Major international competitors include leading companies such as ISU, Sasol, and Indorama.

(b) Alkylphenol

The domestic competitor of the Nonylphenol produced by the Company is CMFC who mainly supplies its products to its reinvested company PACC, while FUCC supplies its products to SJC and Changchun Group. Current international competitors include major producers such as SI in the United States. In view of the environmental issues and trade barriers affecting the market demand for Nonylphenol, FUCC has been actively developing and producing a new product known as Dodecylphenol. In addition to expanding new markets, it can also fill up the underperformed production capacity of the Alkylphenol plant in order to maintain or even increase the Group interests.

At present, only a few companies such as the Company and Yuan Liang Group are engaged in the production of C9 hydrocarbon resin, and only the Company produces hydrogenated hydrocarbon resin. Therefore, in terms of domestic market supply, it would an oligopolistic industry.

Overview of Technology and R&D

(1) R&D expenses

R&D expense in FY2025 is NT$71.435 million.

R&D expense invested as of the end of March, 2026 is NT$16.639 million.

(2) R&D Results

(a) Clariant's newly developed catalyst for the hydrogenation of petroleum resins has proven feasible in laboratory tests
(b) EASTSUN R-100 can be added to hydrogenated Resin to produce FM-100 and FU-100.

(3) Future Research Prospects

(a) Hydrogenation process technology research and development of hydrogenated products and their derivative.
(b) Research and development of eco-friendly solvents or surfactant-related derivatives.
(c) Research and development of high-value chemical products.
(d) Feasibility study of investment in other industries to achieve diversified operation.
(e) Development of pesticides, spices and biotechnology products.

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Long-term and short-term business development plans

(1) Alkylbenzene

(a) Short-term: Enhance customer service and consolidate the existing market.
(b) Long-term: Provide customers with sophisticated services with flexible logistics operations. Development of new usage of the products.

(2) Alkylphenol:

(a) Short-term: Prioritize established customers with stable demand in Japan, South Korea, and Southeast Asia, while actively pursuing expansion into new markets.
(b) Long-term: In order to maintain the utilization rate, other Alkylphenol products would be gradually developed to increase operating profit.

(3) Hydrogenated hydrocarbon resin

(a) Short-term: Provide a complete product line of hydrogenated and non-hydrogenated C9 hydrocarbon resins, and develop hydrocarbon resin with high softening point and highly hydrogenated grade to meet customized needs.
(b) Long-term: Expand production capacity and improve production efficiency.

II. Overview of Markets, Production and Sales

1. Market Analysis

(1) Markets for the major products

Units: Thousands/ %

Fiscal Years Markets	FY2025		FY2024
		Amount	Ratio	Amount	Ratio
Domestic Market		1,727,809	19.18%	1,949,893	18.92%
Export Destinations	China	1,912,104	21.22%	2,221,049	21.56%
	Vietnam	390,054	4.33%	534,670	5.19%
	The Philippines	610,390	6.78%	792,193	7.69%
	Guatemala	1,882,475	20.89%	1,700,444	16.50%
	Others	2,486,325	27.60%	3,106,238	30.14%
Net Sales		9,009,157	100.00%	10,304,487	100.00%

(2) Market shares

(a) Alkylbenzene

The Alkylbenzene produced by the Company has a market share of 99% in the domestic market. In the global market, the Company share is approximately 2.5%, with major international competitors including ISU, Sasol, and Indorama.

(b) Alkylphenol

The domestic competitor of the Nonylphenol produced by the Company is CMFC who mainly supplies its products to its reinvested company PACC, while FUCC supplies its products to SJC and Changchun Group. As for the global market, due to the current impact of China's non-tariff barriers, the main market has been gradually moved from China to Europe and the United States. At present, international competitors include SI from the United States and PCC from Poland. In view of the environmental issues and trade barriers affecting the market demand for Nonylphenol, FUCC has been actively developing and producing new products known as Dodecylphenol. In addition to expanding new markets, it can also fill up the underperformed production capacity of the alkylphenol plant in order to maintain or even increase the Group interests.

i. C9 hydrocarbon resin

At present, C9 hydrocarbon resin is mainly produced in Asia, accounting for about 90% of the overall global production, followed by America and Europe. As being affected by the increase in crude oil prices, the Asian region will have an advantage in raw materials compared with Europe and the United States in the future. According to Argus's 2024 survey data, the total global hydrocarbon resin production capacity is about 3.45 million metric tons, and the UPM's annual production capacity of 48,000 tons represents about 1.4% of such global total volume.

ii. Hydrogenated hydrocarbon resin

According to Argus survey data, the Company holds approximately 2.2% of the global market share and is expected to continue growing.

(3) The future supply and demand situation and growth of the market

(a) Alkylbenzene

Due to the decrease in the effective ingredients of detergents and the increase in imported detergents, domestic demand has continued to decline; however, there is still room for growth in demand in foreign markets. Because the Company maintains a long-term stable supply-demand relationship with foreign customers, export sales maintain at a stable level.

(b) Alkylphenol

In response to market trends, the Company has started to produce Dodecyl Phenol through process improvements to increase its competitiveness. It is hoped that new

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markets can be developed and a considerable market share can be obtained, which would generate considerable benefit in terms of sales volume and amount.

The hydrocarbon resin is a necessity for people’s livelihood consumption. Therefore, generally speaking, the industry fluctuates with the global economic cycle. The C5 or C9 hydrocarbon resin industry generally grows and declines with the fluctuation of the economy. In the past, hydrocarbon resin was regarded as the product at the lowest tier of the industry due to its color and odor and used by industries of oil-based coating material, rubber, and ink as a secondary raw material for several decades. However, in recent years, with environmental protection requirements, it is expected that the solvent oil market for oil-based coating material and ink will gradually shrink, and the market for high-end products used in adhesives (tackifier) would gradually expand. Therefore, high-end applications of hydrogenated hydrocarbon resins or C5/C9 hydrocarbon resins are expected to gradually grow.

(4) Competitive niche

(a) Fully grasp the sources of supply of materials

In order to stabilize production costs, the Company’s raw material purchases are mostly performed based on long-term contracts to connect to the pipelines of the main supplier, CPC, for the direct transportation of raw materials. This can achieve safety and cost-saving purposes and facilitate production. In recent years, new distillation equipment has been installed to ensure the sound quality of the raw materials.

(b) Independent research and development capabilities

The Company owns the technology for the nonylphenol and hydrogenated resin process, and continuously invests in new process innovation, and research and development, which can save payment of royalties, thereby reduce costs and increase the price competitiveness of products. The Company also has upstream raw material development capabilities, which can make the source of raw materials diversified, reduce the cost of purchase, increase profitability, and increase the price competitiveness of products.

The company is located in Taiwan which is the hub of transportation routes in Asia. Therefore, compared with competitors located in other countries, the Company’s cost of bulk shipping to the global markets is relatively low, which allows the rapid provision of services that customers need in a timely manner.

(5) Favorable and unfavorable factors and countermeasures for development

(a) Favorable factors

i. The market demand for Alkylbenzene, Nonylphenol, and petroleum resins

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remains stable, while certain products—such as hydrogenated petroleum resins—benefit from high technical entry barriers. Coupled with rising environmental awareness across countries, these factors support a positive growth outlook for the sector.

ii. The Company maintains good cooperative relations with domestic and foreign suppliers to ensure long-term stable supply sources.

iii. The international marketing channels are robust. In addition to establishing cooperative relations with downstream manufacturers, the Company is establishing marketing channels via the distribution system.

(b) Unfavorable factors

i. Restriction to profitability due to raw material price fluctuations

As the petrochemical industry is likely to be affected by fluctuations in international crude oil prices, in particular, the political instability, frequent riots, strikes, and destruction of oil production or storage equipment especially in some oil-exporting countries would cause oil prices to fluctuate.

Countermeasures

In addition to maintaining long-term cooperative relations with major suppliers (such as Taiwan's CPC), the Company also signs supply contracts with upstream suppliers to ensure the long-term and stable source of supply of raw materials.

ii. Difficulties in recruitment

Since the information and electronics sectors remain the key industry in Taiwan, the general new graduates tend to apply for job positions in related fields. In addition, chemical industry talents require rich experience accumulation and technology inheritance, so it is not easy to recruit high-quality R&D talents.

Countermeasures

In order to attract and retain talents, the Company not only improves the software and hardware equipment of the working environment and improves the welfare system, but also enhances the education and training programs for employees, and arranges positions according to the profession and characteristics of the employees, thereby enhancing the professional quality and technical level of the staff.

Important Usage and Production process of Major Products

The Company's products include (a) Alkylbenzene (b) Alkylphenol and (c) C9 Hydrocarbon Resin/Hydrogenated Hydrocarbon Resin. Its important usage and production processes are as follows:

(1) Important usage of the major products:

(a) Alkylbenzene: The main raw material of surfactants such as detergents.

(b) Alkylphenol: Basic raw materials for special chemicals such as surfactants, rubber, plastic antioxidants, inks, and lubricant additives.

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producing Ethylene-vinyl acetate copolymer EVA and thermoplastic rubber TPR series hot-melt adhesive.

(2) Production process:

(a) Alkylbenzene: After the raw material n-alkane is dehydrogenated, Benzene is added to the alkylation reaction via hydrofluoric acid as a catalyst to produce alkylbenzene.

(b) Alkylphenol: This product is obtained from Nonylphenol and Dodecylphenol which are produced from Alkylation of raw materials Tripolypropylene, Tetra polypropylene and Phenol.

(c) C9 hydrocarbon resin/hydrogenated hydrocarbon resin: Hydrogenated hydrocarbon resin is added to the hydrocarbon resin to produce hydrogenated hydrocarbon resin.

Status of the Supply of Major Raw Materials

Major Raw Materials	Major Sources	Status of Supply
Normal Paraffin	Domestic/ Overseas	Sufficient and Stable
Normal Olefins	Overseas	Sufficient and Stable
Benzene	Domestic	Sufficient and Stable
Tri propylene	Overseas	Sufficient and Stable
Phenol	Domestic	Sufficient and Stable
Propylene Tetramer	Overseas	Sufficient and Stable

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4. List of major suppliers and customers of purchases and sales in the most recent two fiscal years

(1) The names of suppliers who have accounted for more than 10% of net purchases in any of the most recent two fiscal years, volume purchased from them and proportions, and the reasons for the increase or decrease in the volume:

Units: NT$1,000; %

	FY2024				FY2025				As of Mar. 31, 2026
Items	Name	Amount	Percentage to Annual Net Purchases (%)	Relations with the Company	Name	Amount	Percentage to Annual Net Purchases (%)	Relations with the Company	Name	Amount	Percentage to Net Purchases of Q1 (%)	Relations with the Company
1	0001	924,776	14.78	N/A	0001	1,010,708	18.92	N/A	0001	288,163	26.15	N/A
2	0037	670,154	10.71	N/A	0037	880,567	16.48	N/A	0037	278,814	25.30	N/A

	Others	4,662,617	74.51	—	Others	3,451,033	64.60	—	Others	534,846	48.55	—
	Net Purchases	6,257,547	100.00	—	Net Purchases	5,342,308	100.00	—	Net Purchases	1,101,823	100.00	—

The Company's major products are Alkylbenzenes, Alkylphenols, and hydrocarbon resins. The sales of the major products accounted for more than 90% of the operating income in the last two fiscal years. Therefore, the Company purchases the raw materials of its major products, which are Benzene, n-alkanes, Normal Olefins, Tetrapropylenes, Tri polypropylenes, Phenols, and hydrocarbon resins. Due to the industrial characteristics, the petrochemical industry in some countries is state-owned to facilitate the vertical integration of the up-, mid-, and downstream of the supply chains to ensure that the sufficient supply of raw materials; and the domestic oil market in Taiwan was also state-owned in the early periods, which is currently shifting towards privatization. However, the current domestic oil product market remains oligopolistic. Against this backdrop, the Company has continued to actively increase the procurement ratio from other suppliers and worked to diversify its supply sources. In 2025, purchases from Supplier 0001 accounted for 18.92% of the total, while purchases from Supplier 0037 accounted for 16.48%. Overall, reducing reliance on a single supplier and further enhancing supply chain stability.

(2) The names of customers who have accounted for more than 10% of net sales in any of the most recent two fiscal years, their purchase volume and proportions, and the reasons for the increase or decrease in the volume:

Units: NT$1,000; %

	FY2024				FY2025				As of Mar. 31, 2026
Items	Name	Amount	Percentage to Annual Net Sales (%)	Relations with the Company	Name	Amount	Percentage to Annual Net Sales (%)	Relations with the Company	Name	Amount	Percentage to Net Sales of Q1 (%)	Relations with the Company
1	293	1,700,444	16.50	N/A	293	1,882,475	20.89	N/A	293	524,890	21.65	N/A
	Others	8,604,043	83.50	—	Others	7,126,682	79.11	—	Others	1,899,581	78.35	—
	Net Sales	10,304,487	100.00	—	Net Sales	9,009,157	100.00	—	Net Sales	2,424,471	100.00	—

The Company is primarily engaged in the research, production, and sale of chemical industrial materials and their derivatives, including Alkyl Benzene, Alkyl Phenol, Alkyl Benzene Sulfonic Acid, and hydrocarbon resins. Among these, the Company's alkyl benzene, nonylphenol, and alkyl benzene sulfonic acid products are widely used in cleaning products such as laundry detergent, dishwashing liquids, and degreasers. Meanwhile, its hydrocarbon resin products include C9 Hydrocarbon Resin, which is used in adhesives, paints, rubber, and inks, and Hydrogenated Hydrocarbon Resin, which is used in adhesives and hot-melt adhesives.

The Company's net operating revenues for fiscal years 2024 and 2025 were NT$10,304,487 thousand and NT$9,009,157 thousand, respectively. The top ten customers primarily purchased Alkyl Benzene, Alkyl Phenol, and Alkyl Benzene Sulfonic Acid from the Company for use in cleaning products. These customers mainly consist of two categories: manufacturers of detergents and other chemical products, and specialized chemical product trading distributors. The Company primarily supplies raw material Alkyl Benzene for production to its largest customer. In fiscal years 2024 and 2025, net sales to the largest customer amounted to NT$1,700,444 thousand and NT$1,882,475 thousand, respectively, accounting for 16.50% and 20.89% of the Company's net operating revenue for the respective years.

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III. Human Resources

Information of employees in the most recent two years and as of the publication date of the Annual Report

year		2024	2025	As of Mar. 01, 2026
Number of Employee	Direct labor	152	150	152
	Indirect labor	284	267	257
	Total	436	417	409
Average age		42	45	45
Average years of service		14	16	17
Academy Ratio (%)	Doctor	4	4	4
	Master	91	88	84
	College	244	244	240
	Senior High School	81	75	75
	Below high school	16	6	6

IV. Environmental Protection Expenditure

1. FORMOSAN UNION CHEMICAL CORP.

(1) Specify losses due to environmental pollution in the most recent fiscal year and as of the publication date of the annual report (including compensation and environmental audit results which indicate the violation to environmental protection laws and regulations, the date of punishment, the basis, the violated regulations, the violation, and the content of punishment) And the amount of punishment:

Disposition Date: October 27, 2025 (ROC Year 114.10.27)

Disposition Reference No.: Kaohsiung Environmental Protection Bureau Air Letter No. 11440295800

Violated Regulation: Article 20, Paragraph 1 and Article 23, Paragraph 1 of the Air Pollution Control Act

Violation Description: The oil-water separation equipment was not maintained in an airtight condition, and volatile organic compounds (VOCs) leaked from the equipment components in excess of the regulatory standards

Details of Violation: The VOC concentrations leaking from the oil-water separation equipment and the equipment components were 3,242 ppm and 2,882 ppm respectively, exceeding the regulatory standards.

Fine Amount: NT$300,000

(2) Countermeasures (including improvement measures) and potential expenditures:

(a) It is confirmed that all pollution control and prevention equipment installations and discharge permit that shall be applied for are handled in accordance with regulations, pollution prevention and air pollution control fees are paid on schedule, and environmental protection staff responsible for supervising air

pollution, water pollution, waste, and toxic materials have been appointed in accordance with regulations.

The appointed environmental protection staff, safety and health staff and fire management staff are as follows:

License project	License number	Licensed personnel
Grade A / Air Pollution Prevention and Control	(2016) Environmental Protection Agency Training Certificate No. FA050441	Tseng, Guo Wei
Grade A / Air Pollution Prevention and Control	(2011) Environmental Protection Agency Training Certificate No. FA120355	Wang, Mei Hui
Grade A / Air Pollution Prevention and Control	(2020) Environmental Protection Agency Training Certificate No. FA130561	Yao Cheng Ru
Health risk assessment	(2021) Environmental Protection Agency Training Certificate No. EA040424	Wang, Mei Hui
Grade A Toxic Materials Treatment and Management	(2018) Environmental Protection Agency Training Certificate No. JA120253	Tseng, Guo Wei
Grade A Wastewater Treatment	(2007) Environmental Protection Agency Training Certificate No. GA350041	Tseng, Guo Wei
Grade A Waste Disposal	(2008) Environmental Protection Agency Training Certificate No. HA220022	Tseng, Guo Wei
Grade A Occupational safety and health affair managers	Kaohsiung City Government Labor No. 11030646400	Lu, Jun Wei
Grade B Occupational Safety and Hygiene	(Grade B) 004596	Yang, Chen Fa
Fire Protection – Security Supervisor	(2024) Bo Fu Shun Zi Di No.B0046	Hong, Jian Ming
Fire Protection – Fire Protection Management	(E2024) Fu 00603	Lin, Chao-Yang

(b) Major equipment for the prevention and control of environmental pollution to improve the operation and transportation safety of poisons, reduce greenhouse gas emissions and soil and groundwater pollution prevention, and improve operational safety has been installed, which could reduce pollutant emissions and save pollution prevention and control costs, and prevent environmental public nuisance.

Items	FY	Investment	Undepreciated Balance	Purposes and Expected Benefits
1. Air pollution prevention and control	2025	NT$ 7.57 million	-	Prevention of public nuisance
2. Water pollution prevention	2025	NT$ 720 thousand	-	Prevention of public nuisance
3. Waste management	2025	NT$ 2.52 million	-	Prevention of public nuisance
4. Toxic materials management	2025	NT$ 290 thousand	-	Prevention of public nuisance
5. Greenhouse gas management	2025	NT$ 800 thousand	-	Prevention of public nuisance
6. Soil and water maintenance management	2025	NT$ 1.78 million	-	Prevention of public nuisance
7. Safety and health equipment	2025	NT$ 3.97 million	-	Improve the operation safety

Items	FY2026	FY2027	FY2028
Pollution prevention equipment to be purchased or estimated expenditures	1. Air pollution control
2. Water pollution control
3. Waste management
4. Toxic materials management
5. Greenhouse gas management
6. Soil and water maintenance management
7. Safety and health equipment
8. Safety and health equipment	1. Air pollution control
2. Water pollution control
3. Waste management
4. Toxic materials management
5. Greenhouse gas management
6. Soil and water maintenance management
7. Safety and health equipment
8. Safety and health equipment	1. Air pollution control
2. Water pollution control
3. Waste management
4. Toxic materials management
5. Greenhouse gas management
6. Soil and water maintenance management
7. Safety and health equipment
8. Safety and health equipment
Expected improvement	*For item 1, improve environmental quality
*For items 2 and 3, prevent public nuisance
*For item 4, improve ESH level
*For items 5 to 8, improve OSH level	*For item 1, improve environmental quality
*For items 2 and 3, prevent public nuisance
*For item 4, improve ESH level
*For items 5 to 8, improve OSH level	*For item 1, improve environmental quality
*For items 2 and 3, prevent public nuisance
*For item 4, improve ESH level
*For items 5 to 8, improve OSH level
Amount	NT$35.5 million	NT$35.5 million	NT$35.5 million

2. UPM

Unit: NT$1,000

Date	Basis	Violated Regulation	Violation	Penalty		Countermeasures and Improvement
				Fine	Other
N/A

(2) Countermeasures (including improvement measures) and potential expenditures:

Pollution facility installation permit and pollution discharge permit, etc.

Apply for the project	License number	Effective date
Water Pollution Prevention and Control Permit	Ping County Huanshui Xu Zi No. 01487-01	2022.07.05～2027.07.04
Stationary Pollution Source Operation and Fuel Use Permit Management	(M01) Pingfu Huankong Operation Certificate No. T0477-16; Pingfu Huankong Fuel Use Certificate No. T0026-02	2024.08.15～2029.08.14
Stationary Pollution Source Operation and Fuel Use Permit Management	(M02) Pingfu Huankong Operation Certificate No. T0478-11; Pingfu Huankong Fuel Use Certificate No. T0027-01	2023.03.02～2028.03.01
Stationary Pollution Source Operation and Fuel Use Permit Management	(M04) Pingfu Huankong Operation Certificate No. T0681-07; Pingfu Huankong Fuel Use Certificate No. T0028-02	2024.04.15～2029.01.21
Stationary Pollution Source Operation and Fuel Use Permit Management	(M05) Pingfu Huankong Operation Certificate No. T0737-05; Pingfu Huankong Fuel Use Certificate No. T0029-02	2024.01.25～2027.10.17
Stationary Pollution Source Operation and Fuel Use Permit Management	(M07) Pingfu Huankong Operation Certificate No. T0864-05; Pingfu Huankong Fuel Use Certificate No. T0031-02	2024.05.16～2028.10.17
Approval documents for the fourth category of toxic chemical substances (use, storage)	Pingtung County Duhezi No. 000010	2024.11.18～2030.02.19
Approval documents for the fourth category of toxic chemical substances (import, sale, export)	Taipei City Duhezi No. 000202	2024.10.22～2027.01.09

The appointed environmental protection staff are as follows:

License project	License number	Licensed personnel
Grade A / Air Pollution Prevention and Control	(2008) Environmental Protection Agency Training Certificate No. FA160122	Lu, Yu-Shan
Grade A waste disposal	(2009) Environmental Protection Agency Training Certificate No. HA390727	Lu, Yu-Shan
Grade A wastewater treatment	(2008) Environmental Protection Agency Training Certificate No. GA210495	Lu, Yu-Shan
Grade A Health Risk Assessment	(2023) Environmental Protection Agency Training Certificate No. EA020041	Lu, Yu-Shan

(b) Outsourcing and co-processing expenses :

Unit: NT$ thousand

Item	Outsourcing and co-processing expenses
	2024	2025
waste disposal	9,557	10,440

Item	2024	2025
Fixed source air pollution prevention and control fees	7.24	27.12
Soil and groundwater pollution remediation fee	317	542

(d) List the company's investment in major equipment for the prevention and control of environmental pollution, its use and possible benefits

Equipment name	Annual	investment amount	Uses and possible benefits
Air pollution control	2024~2025	NT$ 1,500,000	1. Meet the requirements of environmental protection laws and regulations, reduce pollutant emissions
2. Put an end to environmental hazards
Water pollution prevention	2024~2025	NT$ 300,000	1. Meet the requirements of environmental protection laws
2. Wastewater recycling
Additional waste treatment facilities	2024~2025	NT$ 3,200,000	1. Waste recycling
2. Reduce loss rate
Energy saving and carbon reduction, greenhouse gas reduction	2024~2025	NT$ 1,000,000	1. Reduce electricity and fuel usage
2. Reduce greenhouse gas emissions

(e) Estimated Environmental Capital Expenditure for Next Three Annual Periods

Item	2025	2026	2027
Pollution prevention equipment maintenance, setting content	1. Air pollution control equipment maintenance
2. Wastewater equipment maintenance
3. Annual regular inspection of control equipment
4. Pollution prevention equipment pipeline update	1. Air pollution control equipment maintenance
2. Wastewater equipment maintenance
3. Annual regular inspection of control equipment
4. Pollution prevention equipment pipeline update	1. Air pollution control equipment maintenance
2. Wastewater equipment maintenance
3. Annual regular inspection of control equipment
4. Pollution prevention equipment pipeline update
Total	NT$ 6,000,000	NT$ 6,000,000	NT$ 6,000,000

V. Labor-Management Relations

Current major labor-management agreements and implementation status:

(1) Employee welfare

The Company has established the Employee Welfare Committee in 1981 and been annually distributing budgets based on the working plans to provide various employee welfare subsidies and leisure activities.

Vacation and leave: Monthly leave, annual leave, parental leave, and menstrual leave are provided in accordance with the Labor Standard Act.
Bonuses: Festival bonuses, birthday, marriage, and childbirth gifts, and year-end bonuses based on annual business operating results.
Insurance: In addition to mandatory labor insurance and national health insurance, the Company also provides employees with casualty insurance, group insurance for employees/spouses and children, hospitalization consolation money for employees/spouses and children, and regular physical examination for employees.
Other benefits: Travel subsidies, education subsidies for employees’ children, consolation money for injuries, illnesses and funeral condolences, bonuses for veterans, regular-held dinner parties.

(2) Education and training programs for employees

The Company offers various education and training programs
Quality training
Communication skills
Training programs for new recruits
Training programs for OSH and ESH
Management development skills
Training programs abroad
Seminar for senior executives
In order to achieve the goal of “lifelong learning”, the Company provides employees with a subsidy for on-the-job education. In addition, the Company has designed comprehensive management development courses to integrate and use its internal, external, and foreign information and resources to enable the executives of frontline, mid-, and management levels to timely comprehend the latest management methods, ideas, and concepts.

(3) Disclosure of code for employees’ ethical conduct

A copy of the manual titled “Working Rules” would be distributed to an employee who is newly on board. The manual clearly specifies the provisions of the code for employees’ ethical conduct.

(4) The working environment and the protection of employees’ personal safety

In addition to the working procedures and methods specified in the Working Rules, the Company also provides comprehensive employee group insurance (including life

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insurance, casualty insurance, and cancer insurance) to protect the personal safety of employees and the rights and interests of their family members.

(5) Retirement System

The Company and its affiliates have stipulated the guidelines for employee retirement management in accordance with the Labor Standard Act and monthly allocated retirement reserves to the designated account of the labor retirement reserve supervisory committee as required. The amended Labor Pension Act had been fully effective since July 1, 2005. The applicable regulations are as follows:

(a) The amended Labor Pension Act shall be applicable to the employees hired on or after July 1, 2005. The Company withholds and allocates 6% of the monthly wage to the pension accounts of the Bureau of Labor Insurance on a monthly basis. For any voluntary withholding, the Company withholds and allocates the portion (based on the voluntary withholding ratio) of the monthly wage of such employee to his/her individual pension account of the Bureau of Labor Insurance.

(b) Employees hired prior to July 1, 2005 may select the pension system amended on July 1, 2005 or the original one according to their needs. The original system shall be applicable to any of such employees who make no selection and the original portion of the monthly wage of such employee will be withheld and allocated to the designated account of Bank of Taiwan based on the original retirement guidelines.

For the employees who are transferred or dispatched by the organization to the affiliates, the seniority shall not be discontinued for protection of rights and interests and achieve the goal of talent circulation within the Group. The Group fully complies with the provisions of the Labor Standard Act and the Labor Pension Act to stipulate related measures for employees retirement (e.g. Employees who have offered their full-time service for more than 15 years and reached an age of reach 55 years old, those who have offered their full-time service than 25 years, and those who have offered their full-time service for more than 10 years and reached an age of reach 60 years old may apply for retirement.)

(6) Other major agreements

Based on the requirements of the Labor Standard Act, the Company regularly or from time to time communicates with employees. Any feedback or comments can be fully discussed. Therefore, the labor-management relationship is harmonious and there is no other special agreement.

Since the establishment of the Company, there has been no loss due to labor disputes.

VI. Information Technology Security Management

IT Security Risk Management Framework, IT Security Policy, Specific management procedures and resources invested in IT Security Management:

(1) IT Security Risk Management Framework

The IT Security Team is responsible for coordinating and implementing IT security policies, publicizing IT security information, enhancing employees' IT security

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awareness, and collecting and improving technologies, products or procedures for the performance and effectiveness of the organization's IT security management system. The audit office conducts information security audits on the computer information processing cycle of the internal control procedure every year to evaluate the effectiveness of the internal control of the IT operations. The Information Security Report was submitted to the Board of Directors on November 12, 2025.

Information Security Incident Reporting Procedure

(2) IT Security Policy

In order to implement IT Security Management, the Company has established relevant system management measures. Through the joint efforts of all colleagues, the following policy objectives are expected to be achieved.

Ensure the confidentiality and integrity of IT assets
Ensure that data access is regulated according to departmental functions
Ensure the continuity of the IT systems
Prevent unauthorized modification or use of data and IT systems
Perform regular IT security audits to ensure the implementation of IT security

(3) Specific Management Procedures

Internet Security Control

Well establish the firewall protection mechanism
Regularly scan IT system and data storage for viruses
The use of Internet services should be in line with IT security policy
Regularly review system log of network services to track abnormal events

Data Access Control

The IT equipment should be managed by specific personnel and the system management account ID and password should be well set up and managed
The IT systems access right should be granted based on their job functions
Make sure to eliminate the access right of resigned personnel or personnel under job rotation
Make sure to removed or overwrite those confidential, sensitive data or copyrighted software before the IT equipment is scrapped
Application for remote access to the management information system should be properly reviewed and approved

IT Contingency Plan

Regularly review and modify the IT Disaster Recovery Plan (DRP)
Conduct annual disaster recovery drills according to DRP
Establish a system backup mechanism and implement off-site backup
Periodically review and modify network security control measures

Promotion and Inspection

Promote IT security at any time to enhance employees' awareness of IT security
The use of unauthorized software is strictly prohibited

(4) Resources invested in the IT safety management

12 hours per year of external training courses or seminars for IT security related personnel
Advanced HiNet network protection system services
FortiGate FG101F Hardware Firewall
Sophos Endpoint Antivirus
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2. Information Technology security management operations

The IT Department regularly conducts various information security related tests and evaluations every year. In 2025, the average rate and results of various information security tests and evaluations are as follows.

Project	Frequency of Operation	2025 Annual Operating Period	Results
System Disaster Recovery Test	Once a year	2025/9	No significant risk profile
System Privilege Setting Check	Once a year	2025/8	No significant risk profile
AD login password change notification	Every 90 days	Automatic projection according to the set time	No significant risk profile
Cloud Email password change notification	Every 90 days	Automatic projection according to the set time	No significant risk profile
Information Security Promotion	Irregular, at least once a year	Cybersecurity information was released quarterly in 2025.	No significant risk profile
Server Room Inspection	Daily	Excluding national holidays	No significant risk profile
Database Backup	Daily	Including National Holidays	No significant risk profile
Database and program off-site backup	Every Wednesday and Friday	Excluding national holidays	No significant risk profile
Information Asset Risk Assessment	Once a year (or upon significant equipment changes)	2025/7	No significant risk profile

List the losses, potential impacts and countermeasures suffered from major information security incidents in the most recent year and up to the date of publication of the annual report. If it cannot be reasonably estimated, it shall explain the fact that it cannot be reasonably estimated:

No significant Information security incident in FY2025.

125 -

VII. Important Contracts

1. FORMOSAN UNION CHEMICAL CORP.

Contract Nature	Parties	Contract Start / End Date	Main Content	Restriction Clause
Land lease	Hershey Environmental Technology Co., Ltd.	Jan 01, 2025 ~ Dec. 31, 2027	Lease of eight plots including land number 1-29, Pingnan Industrial Zone, Pingtung County, with a total land area of 83,690 square meters	None
Office roof lease contract	Yong Ji Energy Co., Ltd.	Aug. 13, 2012 ~ Aug. 12, 2032	Lease a total of 4,877 square meters on the roof of Building 96, Pingnan Section, Pingnan Industrial Zone, Pingtung County	None

2. UPM

Contract Nature	Parties	Contract Start / End Date	Main Content	Restriction Clause
Hydrogenated petroleum resin commissioned processing contract	Formosa Union Chemical Corp.	Jan. 01, 2025 ~ Dec. 31, 2025	Entrusted FUCC to carry out the hydrogenation processing of hydrogenated petroleum resin	None
Storage tank equipment lease contract	Taiwan Petroleum Corporation	Jan. 01, 2025 ~ Dec. 31, 2025	Lease of storage and transportation equipment located in Qianzhen Storage and Transportation Station for shore transportation and storage of petroleum resin feed oil for import and export	None

V. Review and Analysis of Financial Status and Performance and Risk Management

I. Analysis of Financial Status

(1) Analysis of Financial Status in the last two years

Unit: NT$ thousand

| Year
Item | 2025 | 2024 | Discretion | | Analysis
Item |
| --- | --- | --- | --- | --- | --- |
| | | | Amount | % | |
| Current Asset | 5,555,236 | 5,186,544 | 368,692 | 7.11 | |
| Property, Plant and Equipment | 3,494,628 | 3,804,195 | (309,567) | (8.14) | |
| Other Assets | 3,071,973 | 3,789,334 | (717,361) | (18.93) | |
| Total Asset | 12,121,837 | 12,780,073 | (658,236) | (5.15) | |
| Current Liabilities | 1,930,579 | 2,030,488 | (99,909) | (4.92) | |
| Non-Current Liabilities | 977,933 | 1,409,792 | (431,859) | (30.63) | 1 |
| Total Liabilities | 2,908,512 | 3,440,280 | (531,768) | (15.46) | |
| Capital Stock | 4,770,163 | 4,770,163 | — | — | |
| Capital Surplus | 76,141 | 76,139 | 2 | — | |
| Retained Earnings | 3,342,205 | 2,941,423 | 400,782 | 13.63 | |
| Other Equities | 759,820 | 1,282,913 | (523,093) | (40.77) | 2 |
| Non-Controlling Interests | 264,996 | 269,155 | (4,159) | (1.55) | |
| Total Equities | 9,213,325 | 9,339,793 | (126,468) | (1.35) | |
| Explanation of the reason, impact and future response plan of the increase or decrease ratio:
1. This was mainly attributable to decreases in long-term borrowings and deferred income tax liabilities in 2025.
2. This was mainly attributable to a decrease in unrealized valuation gains or losses on equity instruments measured at fair value through other comprehensive income in 2025. | | | | | |

Analysis basis: The rate of increase or decrease is more than 20% and the amount of change is more than NT$10 million.

126 -

127 -

II. Analysis of Financial Performance

(1) Comparison and Analysis of Operating Results in the last two years

Unit : NT$ thousand

| Year
Item | 2025 | 2024 | Amount Increase
(decrease) | Ratio (%) | Analysis
Item |
| --- | --- | --- | --- | --- | --- |
| Operating Revenue | 9,009,157 | 10,304,487 | (1,295,330) | (12.57) | |
| Operating cost | 7,667,590 | 8,832,873 | (1,165,283) | (13.19) | |
| Unrealized sales loss (profit) | 172 | (1,883) | 2,055 | 109.13 | |
| Realized sales profit (loss) | 1,990 | - | 1,990 | 100.00 | |
| Realized operating margin | 1,343,729 | 1,469,731 | (126,002) | (8.57) | |
| Operating expenses | 712,410 | 849,605 | (137,195) | (16.15) | |
| Operating Profit | 631,319 | 620,126 | 11,193 | 1.80 | |
| Other income | 154,816 | 124,788 | 30,028 | 24.06 | 1 |
| Other benefits and losses | 3,347 | 193,509 | (190,162) | (98.27) | 2 |
| Share of profits and losses of affiliated companies and joint ventures using the equity method | (12,785) | (5,249) | (7,536) | (143.57) | |
| Financial costs | 37,385 | 45,247 | (7,862) | (17.38) | |
| Net income before tax | 739,312 | 887,927 | (148,615) | (16.74) | |
| Income tax expense | 153,171 | 155,222 | (2,051) | (1.32) | |
| Net income (Losses) | 586,141 | 732,705 | (146,564) | (20.00) | 3 |
| Other comprehensive gains and losses | (328,905) | 639,472 | (968,377) | (151.43) | 4 |
| Total comprehensive income of the current period | 257,236 | 1,372,177 | (1,114,941) | (81.25) | 3, 4 |
| Main reasons of material variations | | | | | |
| 1. This was mainly attributable to the disposal of palladium in 2025. | | | | | |
| 2. This was mainly attributable to a decrease in gains on financial assets measured at fair value through profit or loss and an increase in foreign exchange losses in 2025. | | | | | |
| 3. This was mainly attributable to a decrease in profit in 2025. | | | | | |
| 4. This was mainly attributable to a decrease in unrealized valuation gains or losses on equity instruments measured at fair value through other comprehensive income in 2025. | | | | | |

Analysis basis: Analysis of variations exceeding 20% and amounting exceeding NT$10 million

(2) Estimated sales volume of the coming fiscal year and the basis of estimation

Unit: Metric ton

Year	Estimated Sales Volume	Basis for Estimation	Main Reasons of the Plateau
2026	188,923
(Total sales volume of all operations departments)	The estimation is mainly based on previous annual sales and market demand estimates for 2026	The economy has not yet recovered significantly

(3) Analysis of changes in operating gross profit:

Unit: NT$ thousand

Items	Changes between the Previous and Next Periods	Reasons for the Difference
		Difference in Price	Difference in Cost	Difference in Sales Mix	Difference in Quantity
Gross Profit	(126,002)	(398,894)	416,379	(5,853)	(137,634)
Notes	1. Price Variance:
The unfavorable sales price variance arose in 2025 because product selling prices were adjusted downward following the decline in crude oil prices, making them lower than those in 2024.
2. Cost Price Variance:
The favorable cost variance arose in 2025 because raw material costs decreased following the decline in crude oil prices.
3. Sales Mix Variance:
The unfavorable mix variance arose because the proportion of sales of higher gross margin products decreased in the period.
4. Volume Variance:
The unfavorable volume variance arose because sales volume decreased in 2025.
5. Overall:
The overall variance for 2025 was unfavorable, primarily attributable to the reduction in selling prices, a decrease in the proportion of sales of higher gross margin products, and a decline in total sales volume.

128 -

129 -

III. Analysis of Cash Flow

(1) Cash Flow Analysis for the Current Year: Analysis of variations exceeding 20%

| Year
Item | December 31, 2025 | December 31, 2024 | Amount increase
(decrease) % |
| --- | --- | --- | --- |
| Cash flow ratio % | 29.18 | 52.65 | (44.58) |
| Allowable cash flow ratio % | 84.75 | 105.66 | (19.79) |
| Cash reinvestment ratio % | 1.18 | 4.97 | (76.26) |
| Analysis and explanation of the increase and decrease ratio:
1. Cash Flow Ratio: The decrease in 2025 was primarily attributable to an increase in financial assets measured at fair value through profit or loss.
2. Cash Reinvestment Ratio: The change in 2025 was primarily attributable to an increase in cash dividends distributed and a decrease in long-term investments. | | | |

(2) Cash Flow Analysis for the Coming Year:

Unit: NT$ thousand

Balance of cash-beginning (1)	Net Cash Inflows from Operating Activities all year round (2)	Cash outflow over the year (3)	Cash Surplus (Deficit) (1)+(2)-(3)	Remedy for Deficit in Cash
				Investment Plan	Financing Plan
501,351	729,161	695,798	534,714	—	—
1. The analysis of cash flow variations this year:
(1) Operating activities: Profit is expected to increase in 2026, resulting in an increase in net cash inflows.
(2) Investing activities: Mainly for sale of financial assets.
(3) Financing activities: Mainly for issuing cash dividends and repaying loans.
2. Improvement plan for inadequate currency: N /A

IV. The impact of major capital expenditures in the most recent fiscal year on financial operations: N/A

V. Reinvestment policies in the most recent fiscal year, the main reasons for the gains or losses, and the plans for improvement and investment plan for next fiscal year

The following table presents the reinvested affiliates whose amounts of long-term investment exceed 5% of their paid-in capital in FY2025

Unit: NT$ thousand

| Notes
Items | Amount | Policies | Main Reasons for
Gains or Losses | Improvement | Future Investment
Plans |
| --- | --- | --- | --- | --- | --- |
| Hershey
Environmental
Technology
Co., Ltd. | 510,211 | Steady development towards a diversified business operation to create the maximum profits. | Increase in profit due to increase in trading volume, processing volume and turnover as compared to FY2024 | Continued development and sale of remediation agents targeting environmental soil and groundwater treatment, focusing on contaminants such as chlorinated compounds, petroleum hydrocarbons, heavy metals, and fluorides. Building a strong competitive team with our customer base in the remediation industry. | Develop fine chemicals and sulfonated products to expand product diversity. |
| United
Performance
Materials
Corporation | 603,812 | Steady business operation, implement the Process Safety Management (PSM), enhance environmental safety and health policies, improve production efficiency, continue to develop new products, and enhance product features. | The petrochemical industry faces severe challenges due to the global supply chain restructuring triggered by US tariff policies, compounded by overcapacity, geopolitical risks, and the net-zero transition policy. Furthermore, the sharp fluctuations in the New Taiwan Dollar exchange rate in the first half of the year had a significant short-term impact on our cost control and exchange rate gains and losses. Although the management team actively optimized the structure and sought a rebound in the fourth quarter, sales remained sluggish due to the interplay of numerous unfavorable external factors, resulting in the failure to achieve the original operating targets for the annual settlement. | 1. Actively develop related special application products and expand the market for high-quality products.
2. The goal is to further reduce costs and enhance competitiveness of existing products in order to surpass competitors. | 1. Environmentally friendly products development, based on existing products.
2. Evaluate and introduce advanced processes and equipment to achieve carbon reduction goals. |

130 -

| Notes
Items | Amount | Policies | Main Reasons for
Gains or Losses | Improvement | Future Investment
Plans |
| --- | --- | --- | --- | --- | --- |
| Great Victory
Chemical
Industry Co.,
Ltd. | 401,364 | Quality first,
innovative R&D,
and continuous
improvement of
customer
satisfaction. | Revenue increased from
the launch of new
pesticide products, but
profits decreased due to a
sharp decline in the price
of pesticide technical
grade in mainland China
and price competition . | 1. Adjust the product mix
and expedite the
registration process for
new products.
2.Strengthen the
distribution system and
cultivate the domestic
market. | Strengthen
collaboration with
foreign companies to
develop new products. |
| Fusugar
Industry Corp. | 2,016,555 | Product safety,
and customer
satisfaction. | High production costs and
an oversaturated market. | Reduce production costs
and develop new
markets. | None at the moment. |

Note: As of the publication date of the Annual Report.

VI. Analysis and Assessment of Risks

(1) The impact of interest rates, changes in exchange rates, and inflation on the Company's gains and losses and future countermeasures:

a. Changes in interest rates:

i. The short-term borrowings of the Company are mostly fixed-rate debts, and the current market funds are sufficient, and hence it is assessed that the cash flow risk of changes in interest rates is not significant.

ii. The long-term borrowings of the Company are financial products with floating interest rates. Therefore, changes in market interest rates will cause the effective interest rates of debt financial products to change accordingly, which would cause fluctuation of future cash flows.

b. Changes in exchange rates:

The Company's purchases and sales are mainly denominated in U.S. dollars, and the Company's foreign currency assets are greater than the positions of foreign currency liabilities, and the foreign currency collection period is slightly longer than the payment period. Therefore, it is expected that the fluctuation of market exchange rates would cause relatively significant market risk.

c. Inflation:

Due to the impact of global oil prices and fluctuation of prices of other related resources prices of recent years, the overall economic development has shown a trend of slight inflation. However, the transaction prices between the Company and customers and suppliers are mostly adjusted by the market mechanism and are less affected by inflation. In addition, the Company always focuses on economic development and timely adopt countermeasures. The product price would still cover the cost. Therefore, the Company has not been significantly affected by inflation so far.

(2) Policies for engaging in high-risk, high-leverage investments, fund loans to other third parties, endorsements and guarantee, and derivatives transactions, the main reasons for gains or losses, and the future countermeasures:

The Company does not engage in high-risk, high-leverage investments and derivatives transactions in the most recent years. The funds are loaned and the endorsement and guarantee are all provided to affiliates or reinvested companies of the Company, none of which has encountered financial difficulties that would damage the Company's creditor's rights or required the Company to cover the debts which such affiliate or reinvested company could not repay on its own.

(3) Future plans and estimated expenses of R&D:

Unit : NT$ thousand

R&D Plans	Current Status	Required R&D Investment	Estimated Timing to Achieve Mass Production
Hydrogenated Resin Catalyst Testing	Sequential testing of Hydrogenation catalysts from four different suppliers	3,000	The on-site trial production evaluation will be conducted in 2026.
High-Value Product Research	Batch / fixed bed testing in Lab	5,000	To be evaluated after obtaining the testing results in 2026.

Factors of Influence: Source of raw materials, costs after mass production, and market acceptance.

(4) The impact of changes of domestic and foreign policies and legal amendments on the Company's financial business operation and countermeasures: None.

(5) The impact of technological and industrial changes on the Company's financial business operation and countermeasures:

With the advancement of information technology, the Company's various operations are gradually computerized, which is slightly helpful to improve efficiency and reduce operating costs.

(6) The impact of changes of the corporate image on corporate crisis management and countermeasures:

The Company has always been operating steadily and attaching importance to the corporate image. It has received ISO9001 and 14001 certifications and been recognized by financial institutions, which allows lower financing costs.

(7) Expected benefits, potential risks, and countermeasures of mergers and acquisitions: N/A.

(8) Expected benefits, potential risks, and countermeasures of expanding the plants: N/A..

(9) Risks from the consolidation of purchase or sales and countermeasures: Not applicable.

(10) The impact and risk of significant transferring of stocks by the directors, supervisors, or shareholders with a shareholding of more than 10% on the Company and countermeasures: N/A.

(11) The impact, risks, and countermeasures for the changes in the management of the Company: None.

(12) Litigation or non-litigious proceedings: None.

(13) Other major risks and countermeasures:

The impact of information system damage on the Company's business operation and countermeasures: In order to manage its business operations, production and sales, R&D, and

accounting tasks, the Company have established a control mechanism and continuously updated the network and computer security protection system to protect the safety. In addition, for important system program data, an automatic data backup mechanism has been established to ensure that data loss can be minimized and can recover as soon as possible upon the occurrence of any particular conditions. Currently, additional hard disks and USBs are adopted for backup, and the backup media is delivered for off-site storage on a weekly basis to ensure the normal operation of important information systems and data preservation, which can reduce the risk of system disruption caused by sudden natural disasters and human error. The exercise of host recovery shall be performed at least once a year to verify whether the emergency response plan is effective and enforceable. The emergency response plan is expected to be continuously refined and updated to enhance the ability to ensure continuous business operations.

VII. Other major matters: None.

133 -

134 -

VI. Special Disclosure

I. Affiliated Companies

(1) Affiliates Consolidated Business Report

i. Organizational chart of affiliations

ii. The basic information of affiliated companies
Unit: NT$ thousand

Name of Company	Date of incorporation	Address	Paid-in capital	Main Business Items
Hershey Environmental Technology Co., Ltd.	August 13, 1993	8F, No. 80, Liuzhou Street, Wanhua District, Taipei City	500,000	1. Planning and design of petrochemical engineering, installation and trading of mechanical equipment,
2. Petrochemical raw materials and synthetic resin manufacturing, wholesale and retail
3. Chemical processing and fractionation business.
4. Manufacture of pesticide progenitor.
5. Manufacture of environmental pesticides.
United Performance Materials Corporation	September 15, 1995	9F, No. 80, Liuzhou Street, Wanhua District, Taipei City	899,706	Manufacturing, processing and trading of petroleum resin and refined resin liquid.
Great Victory Chemical Industry Co., Ltd.	October 22, 1985	10F, No. 80, Liuzhou Street, Wanhua District, Taipei City	198,000	1. Manufacturing and import and export sales of pesticides.
2. Manufacturing and sales of fertilizers.
Fusugar Industry Corp.	April 01, 2011	No. 11, North 1st Road, Qingshui District, Taichung City	1,076,000	1. Sugar Manufacturing
2. Wholesale food
3. Petrochemical raw material manufacturing industry.
4. Synthetic resin and plastic manufacturing.

iii. Shareholders concluded as the existence of the controlling and subordinate company relation : None.

iv. Industries covered by all the affiliates: Refer to the basic information of affiliated companies.

v. The profiles of Directors, Supervisors and Chairman of affiliates.

Dec.31,2025

Unit: NT$ thousand; share; %

Name of Company	Job title	Name or Representative	Shareholding
			Shares (Investment Amount)	Shares (Investment Amount)
Hershey Environmental Technology Co., Ltd.	Chairman	Formosan Union Chemical Corp. Representative / Chen, Qin-Jun	50,000,000
0	100
0
	Director	Formosan Union Chemical Corp. Representative / Huang, Jian-Fa	50,000,000
0	100
0
	Director	Formosan Union Chemical Corp. Representative / Hong, Sheng-yang	50,000,000
0	100
0
	Supervisor	Formosan Union Chemical Corp. Representative / Huang Jun-Zhe	50,000,000
0	100
0
	General Manager	Hong, Sheng-yang (Also Director)	0	0
	Chairman	Formosan Union Chemical Corp. Representative / Tsai, Jian-Xun	72,202,200
0	80.25
0
United Performance Materials Corporation	Director	Formosan Union Chemical Corp. Representative / Huang, Pin-Xian	72,202,200
20,597	80.25
0.02
	Director	Formosan Union Chemical Corp. Representative / Chen, Qin-Jun	72,202,200
48,031	80.25
0.05
	Director	Caо, Zong-Yi	0	0
	Director	Huang, Teh-Lun	173,627	0.19
	Supervisor	Huang, Zheng-Cun	0	0
	Chairman	Formosan Union Chemical Corp. Representative / Chang, Yu-Hsu	19,800,000
0	100
0

Name of Company	Job title	Name or Representative	Shareholding
			Shares (Investment Amount)
Director		Formosan Union Chemical Corp. Representative / Chang, Tsui-Ling	19,800,000
			0
Director		Formosan Union Chemical Corp. Representative / Tseng, Yao-Zheng	19,800,000
			0
Supervisor		Formosan Union Chemical Corp. Representative / Tseng, Hsiao-Chien	19,800,000
			0
General Manager		Chang, Yu-Hsu (Also serves as Chairman)	0
Fusugar Industry Corp.	Chairman	Formosan Union Chemical Corp. Representative / Lee Hung-Te	97,395,974
Vice Chairman	Formosan Union Chemical Corp. Representative / Chen, Qin-Jun	97,395,974	90.52
		108,000	0.10
Director	Formosan Union Chemical Corp. Representative / Huang, Teh-Lun	97,395,974	90.52
Director	Formosan Union Chemical Corp. Representative / Lin, Li-Jen	97,395,974	90.52
Director	Formosan Union Chemical Corp. Representative / Ko, Yen-Huei	97,395,974	90.52
Director	Formosan Union Chemical Corp. Representative / Huang, Jun-Zhe	97,395,974	90.52
Director	Formosan Union Chemical Corp. Representative / Huang, Pin-Xian	97,395,974	90.52
Supervisor	Lin, Yan-Fu	0	0
Tanques Del Pacific Co., SA	Director	Formosan Union Chemical Corp. Representative / Lee, Hung-Te	900
Director	Formosan Union Chemical Corp. Representative / Huang, Pin-Xian	900	100
Director	Formosan Union Chemical Corp. Representative / Blanca Estela Chuy Ochoa	900	100
		0	0
Yong Ji Energy Co., Ltd.	Chairman	Hershey Environmental Technology Co., Ltd. Representative / Chen, Qin-Jun	387,840
Director	Hershey Environmental Technology Co., Ltd. Representative / Huang, Jun-Zhe	387,840	50
Director	Yong Chen Energy Co., Ltd. Representative / Tan, Yu-Shun	187,520	24.18
Supervisor	Mei Lun Investment Limited Co. Representative / Huang, Teh-Lun	193,920	25

136 -

vi. Overview of affiliates FY2025 operation:

Unit: NT$ thousand

Name of Company	Paid-in Capital	Total Assets	Total Liabilities	Net value	Operating Revenue	Operating Profit	Net Income	EPS (after Tax)
Hershey Environmental Technology Co., Ltd.	500,000	1,151,028	493,547	657,481	1,224,441	45,168	88,763	1.78
United Performance Materials Corporation	899,706	1,595,261	474,669	1,120,592	1,181,569	1,087	(5,254)	(0.06)
Great Victory Chemical Industry Co., Ltd.	198,000	1,254,356	126,660	1,127,696	581,872	44,398	57,192	2.89
Fusugar Industry Corp.	1,076,000	1,366,825	423,118	943,707	3,000	(60,352)	(40,453)	(0.38)
Tanques Del Pacific Co., SA	3,626	11,798	939	10,859	14,652	1,963	1,694	1,882.55
Yong Ji Energy Co., Ltd.	7,757	14,723	2,516	12,207	3,224	1,082	864	1.11
Yong Yau Energy Co., Ltd.	68,400	81,610	5,789	75,821	12,344	4,983	4,016	0.59
Yong Shen Energy Co., Ltd.	6,200	11,766	214	11,552	3,361	878	713	1.15

(2) Consolidated financial statement of affiliates

For related information, please visit the Market Observation Post System (MOPS) at https://mops.twse.com.tw and navigate to “Electronic Document Download / Affiliated Enterprises - Three Statements Section” under the selected company.

(3) Affiliate Report: N/A

II. Private placement of securities over past year and up to the date of publication of the annual report: N/A

III. Other Supplementary Information: None

VII. Material Event Impact, pursuant to Article 36-3-2 of the Securities and Exchange Act, on Shareholders' Equity or Share Price from Last Year up to the Annual Report being Published : N/A

138 -

FORMOSAN UNION CHEMICAL CORP.

Chairman: HUANG, SHEN-TSAI

Registered address: 7F, No. 80, Liuzhou Street, Wanhua District, Taipei City

Tel.: (02)2507-1234

Notice to readers

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

AI assistant

FUCC — Annual Report 2025

51892_rns_2026-05-11_abe3f7ed-d875-4130-bd33-52d1c6f4413b.pdf

和益化學工業股份有限公司

FORMOSAN UNION CHEMICAL CORP.

Annual Report 2025

Notice to readers

CONTENTS

1. Business Performance Report for 2025

(1) Results

(2) Status of Implementation of Budgets in 2025

2. Summary of Business Operation Plans for 2026

3. Conclusions

II. Report of Corporate Governance

1-3. Major shareholder of the major institutional shareholders

II. Remuneration paid to Directors, Supervisors, General Manager, and Deputy General Manager in the most recent year

3. Remuneration of General Manager, Deputy General Manager (Individual Disclosure of Names and Methods of Remuneration)

2. Evaluation implementation status of the Board of Directors

3. Participation of the audit committee in the operation of the board of directors

The operation of the Audit Committee

Other matters required to be recorded:

5. Establishment, functions, and operations of the Remuneration Committee:

1-1 Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years

1-1.2. Greenhouse Gas Assurance Information

1-2. Greenhouse Gas Reduction Targets, Strategies, and Action Plans

11. Implementation Status of internal control system

FORMOSAN UNION CHEMICAL CORP.

VII. Equity information in fiscal year 2025 and as of the publication date of the annual report

2. Shares Trading with Related Parties

3 Shares Pledge with Related Parties

II. Major Shareholders (Top 10 shareholders or with Shareholdings greater than 5%)

III. The Company's Policies regarding Dividends and Implementation Status

1. Dividends policies

IV. The impact of the proposal of issuance of bonus shares to be reviewed by the shareholders' meeting on the Company's business operating performance and EPS

V. Employee Compensation and Remuneration for Directors and Supervisors

2. Overview of the Industry

(1) Current Status of the Industry and its Development

(a) Alkylbenzene

II. Overview of Markets, Production and Sales

1. Market Analysis

4. List of major suppliers and customers of purchases and sales in the most recent two fiscal years

III. Human Resources

IV. Environmental Protection Expenditure

1. FORMOSAN UNION CHEMICAL CORP.

2. UPM

2. Information Technology security management operations

VII. Important Contracts

1. FORMOSAN UNION CHEMICAL CORP.

2. UPM

II. Analysis of Financial Performance

(1) Comparison and Analysis of Operating Results in the last two years

III. Analysis of Cash Flow

IV. The impact of major capital expenditures in the most recent fiscal year on financial operations: N/A

VI. Analysis and Assessment of Risks

VI. Special Disclosure

I. Affiliated Companies

(1) Affiliates Consolidated Business Report

FORMOSAN UNION CHEMICAL CORP.

Notice to readers

More from FUCC

FUCC Annual Report 2025