Stock Code: 4566

GLOBALTEK

GLOBAL TEK FABRICATION CO., LTD.

2025 Annual Report

Annual Report Inquiry Website:
MOPS MOPS: https://mops.twse.com.tw.
Company Website: https://www.globaltekww.com
Publication Date: April 11, 2026

I. Spokesperson and Deputy Spokesperson:
Spokesperson: Lin, Yi Cheng
Title: Special Assistant
Tel.: (03) 4201398 ext. 3013
Email Address: [email protected]
Deputy Spokesperson: Huang, Yah-Hsing
Position: President
Tel.: (02) 2696-3988 ext. 1099
Email: [email protected]

II. Contact Information of Headquarter, Branches and Plants:
(I) Headquarters:
Address: 15F, No. 94, Sec. 1, Xintai 5th Rd., Xizhi Dist., New Taipei City
Tel.: (02)2696-3988
(II) Branches: None.
(III) Plants:
Xinwu Plant
Address: No.638, Sec. 6, Kuaisu Rd., Xinwu Dist., Taoyuan City.
Telephone: (03)420-1398
Youshi Plant
Address: No. 1, Ln. 863, Gaoshi Rd., Yangmei Dist., Taoyuan City
Telephone: (03) 420-1398

III. Contact Information of Stock Transfer Agency:
Name: Shareholder Administration Department, KGI Securities Co., Ltd.
Address: 5F., No. 2, Sec. 1, Chongqing S. Rd., Taipei City
Tel.: (02)2389-2999
Website: https://www.kgi.com.tw

IV. Contact Information of the CPAs for the Latest Financial Statements:
Accounting Firm: Ernst & Young
Names of Accountants: CPAs Cheng, Ching-Piao and Fu, Wen-Fang
Address: 27F., No. 1088, Zhongzheng Rd., Taoyuan Dist., Taoyuan City
Tel.: (03)319-8888
Website: https://www.ey.com/zh_tw

V. Name of any exchanges where the Company's securities are traded offshore, and the method by which to access information on said offshore securities: None

VI. Company Website: https://www.globaltekww.com

Page Number

Table of Content

One. Letter to Shareholders ... 3
Two. Corporate Governance Report ... 11
I. Information on the Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, and Supervisors of Divisions and Branch Units ... 11
II. Remuneration of Directors, Supervisors, President, and Vice Presidents in the Most Recent Year ... 21
III. Implementation of Corporate Governance ... 28
IV. Information on CPA Professional Fees ... 91
V. Information on Replacement of CPAs ... 91
VI. The Chairman, President, or Any Managerial Officer in Charge of Finance or Accounting Matters in the Most Recent Fiscal Year Holding a Position at the CPAs' Accounting Firm or an Affiliate of the Accounting Firm ... 91
VII. Any Transfer of Equity Interests and Pledge of or Change in Equity Interests During the Most Recent Fiscal Year and during the Current Fiscal Year Up to the Date of Publication of the Annual Report by a Director, Supervisor, Managerial Officer, or Shareholder with a Stake of More than 10% ... 91
VIII. Relationship Information, if among the Company’s Ten Largest Shareholders Any One Is a Related Party, Spouse, or a Relative within the Second Degree of Kinship of Another ... 92
IX. Total Number of Shares and Total Equity Stake Held in Any Single Investee Company by the Company, Its Directors and Supervisors, Managerial Officers, and Any Companies Controlled Either Directly or Indirectly by the Company ... 93
Three. Fundraising Status ... 94
I. Capital and Shares ... 94
II. Issuance of Corporate Bonds ... 98
III. Issuance of Preference Shares ... 102
IV. Global Depository Receipts ... 102
V. Employee Stock Options ... 102
VI. Issuance of RSAs ... 103
VII. Issuance of New Shares in Connection with Mergers or Acquisitions or with Acquisitions of Shares of Other Companies ... 105
VIII. Implementation status of capital allocation plans ... 105
Four. Operation Overview ... 106
I. Business Activities ... 106
II. Analysis of Market and Production and Marketing Situation ... 145
III. The Number of Employed Employees, Average Length of Service, Average Age and Education Distribution Ratio in the Last Two Years and as of the Annual Report Publication Date ... 155

IV. Disbursements for Environmental Protection ... 155
V. Labor Relations ... 155
VI. Cyber Security Management ... 158
VII. Important Contracts ... 163

Five. Review and Analysis of Financial Position and Financial Performance and Listing of Risks ... 166

I. Financial Position ... 166
II. Financial Performance ... 167
III. Cash Flows ... 168
IV. Effect on Financial Operations of Any Major Capital Expenditures during the Most Recent Fiscal Year ... 169
V. Reinvestment Policy for the Most Recent Fiscal Year, Main Reasons for Profits/Losses Generated Thereby, Plan for Improving Re-investment Profitability, and Investment Plans for the Coming Year ... 169
VI. Listing of Risks ... 172
VII. Other Important Matters ... 175

Six. Special Disclosure ... 176

I. Information on affiliated companies ... 176
II. Private Placement of Securities during the Most Recent Fiscal Year and during the Current Fiscal Year Up to the Date of Publication of the Annual Report ... 176
III. Other Supplementary Information ... 176

Seven. Situations Listed in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act, which Might Materially Affect Shareholders' Equity or the Price of the Securities, Occurring during the Most Recent Fiscal Year and during the Current Fiscal Year Up to the Date of Publication of the Annual Report ... 177

One. Letter to Shareholders

Dear Shareholders:

Hello everyone. In 2025, with the inauguration of US President Trump and his “Make America Great Again” policy, the United States has significantly increased its tariffs since March as leverage in negotiations with other countries. Coupled with the strategic competition between the USA and China, this has caused dramatic turbulence in global markets and irrational volatility in global stock markets. While Global Tek was also impacted, we promptly and responsibly issued a press release on April 9, 2025, “explaining the potential impact posed by the US reciprocal tariffs on the Company’s operations” to keep all investors informed and alleviate unnecessary concerns. However, the NTD also rose sharply by more than 10% on April 28 and on May 5 of the following week. Except for a few special industries, all export-oriented enterprises have suffered significant exchange losses. Of course, we have also suffered considerable losses. However, through the joint efforts of the team, we delivered continued growth and profitability in 2025. Our operating revenue reached NT$4.976 billion with a YOY growth rate by 4%. Compared with our listed peers, we are one of the leaders. Although our pre-tax net profit was NT$201 million with the basic earnings per share of NT$1.36, we differ from other peers. Even though our annual revenue has approached NT$5 billion, which has far exceeded the so-called NT$3 billion threshold for general traditional machine processing factories, we are still marching toward the revenue target of NT$10 billion. We believe that as a listed company, the most important thing is to build a structure and momentum for the Company's annual revenue to continue to grow. As a leader of a listed company, we must see farther and act more macro, not simply pursue short-term benefits.

Since its founding in 2000, Global Tek Group has consistently implemented organizational empowerment across four key areas, i.e. corporate culture, strategy, organization and talent, to build a flat and customer-centric organization. In the niche market, finding the right customers and continuously refining, innovating, simplifying, optimizing, and strengthening resilience will drive stable development and sustained growth for the Group. After 25 years’ persistent effort and dedication to creating value for all stakeholders, we have consistently pursued continuous innovation, technological improvement, and integration of resources across the upstream and downstream supply chains. Through localized development and deep cultivation, we’ve built substantial scale while establishing an international, professional organization. We continue to focus on diverse niche markets, expand our economic strength, and strengthen our professional, lean organization by connecting digital AI operations and manufacturing.

The core competitive strategy of Global Tek is to focus on diversified niche markets globally, providing a one-stop comprehensive service, which integrates relevant processes and resources from product design through professional metal precision forming, mechanical processing, specialized key post-processes, and non-destructive testing, to meet the needs of Tier 1 customers. In the past few years, we acquired AvioCast Inc. in Taichung, Chongye (Suzhou) (now known as Global Tek Suzhou factory), and invested in Tongchuan to build a modern and large-scale precision casting factory. All these efforts are aimed at strengthening Global Tek Group’s long-term competitive advantages. Today, Global Tek Group has become a leading supplier to major global niche market brands. As the saying goes, time reveals true strength. We firmly believe that the key differentiators between the Global Tek Group and its competitors will become increasingly clear over time. We would like to thank all shareholders for their trust and support of the management team. We will continue to dedicate ourselves to professional specialization and resource integration, creating a mutually beneficial and prosperous future with our core customers and all stakeholders.

Looking to the future, Global Tek Group continues to implement long-term growth plans, strategic key initiatives, and major action plan planning. Although external uncertainties are increasing, especially the unreasonable tariff policies of the US President Trump, coupled with the need for geopolitical risk diversification, this presents a significant challenge for all large-scale listed

companies. However, as Sun Tzu said in The Art of War, “Do not rely on the enemy not coming; rely on being prepared.” and “Do not rely on the enemy not attacking; rely on making yourself unassailable.” Faced with an increasingly competitive market, we have always believed that establishing a one-stop service capability is the only way to enhance our competitiveness and expand our market share. Simultaneously, regarding markets outside of China and the US, we continue to strengthen localized development in Taiwan and Mainland China to build economic scale and enhance our competitive strength. At the same time, we are accelerating the construction of a factory in Thailand, with initial production lines expected to be established in the second quarter of 2026 to accommodate more large-scale economic production bases outside of Taiwan and China, driven by geopolitical risk considerations. This will allow us to capture significant opportunities in niche markets, ensuring that our core customers remain loyal and are willing to collaborate with us to achieve global growth.

One. Business development and production planning

Below is an update on our industrial layout in the diversified niche market:

I. Automotive industry: Safety system components, fuel or range extender powertrain systems, new energy vehicle braking and driving control systems, etc.

(I) In terms of manufacturing: Beyond our existing precision machining capabilities, the addition of the Suzhou team has enabled us to fully integrate machining, stamping, and deep drawing processes, allowing us to offer customers comprehensive one-stop services.

(II) In addition to the existing production bases in Taiwan and mainland China (Wuxi, Suzhou, and Taoyuan Xinwu), the new factory being built in Chonburi, Thailand is expected to commence production in the second quarter of 2026.

II. Industrial application industries: Semiconductor production equipment, petrochemical industry control equipment and high-end bicycle components.

(I) In terms of process: Beyond our existing capabilities, the modern precision casting factory in Shanxi Tongchuan has been certified by key customers. We are gradually building the ability to significantly improve our competitiveness in winning new business through integrated casting and machining solutions.

(II) Production and manufacturing facilities: The facilities in Taoyuan, Taiwan, Xi'an, Tongchuan, and the future factory in Thailand all have substantial mass production capacity. Investment in automation equipment will allow the Company to continuously increase its production capacity and competitiveness.

III. Aerospace and other high-end special applications: Commercial aircraft control systems, fuel anti-icing systems, fuel engine auxiliary systems, environmental control systems, and drones and low-orbit satellites.

(I) In-process: Aerospace AS9100 and NADCAP certified precision aluminum alloy sand casting, precision aluminum alloy casting, 3D printed sand core casting system, wash composite processing + 5-axis machining center + all related post-processing.

(II) Production and manufacturing facilities: Precision aluminum alloy sand mold casting with NADCAP certification from Taichung AvioCast Inc. factory + precision aluminum alloy casting + all related post-processing processes, including heat treatment, surface treatment, and non-destructive testing.

IV. Liquid cooling thermal system components: microchannel heat sinks, quick-release liquid cooling joints, water pumps, manifold valve bodies, and other metal parts.

(I) Production process: Forging, lost-wax casting, gear shaping, and precision machining, among others.

(II) Manufacturing factories: Wuxi, Suzhou, Xi'an, Tongchuan, Taiwan, and Thailand.

V. For emerging industries such as drones, low-orbit satellites, and humanoid robots,

Global Tek Group has consistently focused on precision niche markets. Beyond our existing industries that have reached economies of scale, we are extending our team's expertise and enhancing our technology through continuous iteration. Crucially, positive word-of-mouth continues to grow in the market, enabling us to gradually penetrate key accounts in these high-end, long-term growth niche markets. While these ventures are still in their early stages, we remain committed to our established service principles, actively participating in the initial design and planning phases with core clients and providing comprehensive and value-added services. We are confident that significant new business opportunities will emerge in the near future.

Two. Group's Sustainable Development for ESG

On June 12, 2025, Global Tek team received recognition from the TWSE in the 11th (2024) Corporate Governance Evaluation. Global Tek Group's ranking this year significantly outperformed its peers, placing it in the top 5% among the 1,749 TWSE/TPEx listed companies participating in the evaluation. We extend our gratitude to the competent authorities for acknowledging Global Tek, and to the dedicated team whose tireless efforts have driven our continuous improvement. This success builds upon the momentum of Global Tek receiving the 2024 ESG Corporate Governance Award at the Golden Peach Awards on December 23, 2024.

Facing the demands of corporate sustainability and environmental, social, and corporate governance regulations, the upgrade to Industry 4.0 intelligent manufacturing, Taiwan's labor shortage due to a declining birthrate, the impact of cross-strait geopolitical tensions, the price wars and overcapacity in China's automotive industry supply chain, the rapid development and expanding applications of AI technology, and the upheaval caused by the tariff hikes following Donald Trump's election as the US President, the world has changed. As always, we remain committed to organizational transformation, technological advancements, the implementation of automated production lines, investment in AI servers, and the adoption of AI assistant systems. We believe that regardless of external changes, "strength lies in continuous self-improvement." By consistently learning, growing, and evolving internally, we can overcome limitations and become an industry leader.

I. Business Results for 2025:

(I). 2025 Results of Operation:

The consolidated operating revenue of Global Tek in 2025 was NTD4,976,319 thousand, an increase by NTD178,949 thousand from the operating revenue of NTD4,797,370 thousand in 2024, with a growth rate of $4\%$ . The operating gross margin in 2025 was $22.1\%$ , which was slightly higher than the $21.7\%$ in the previous year. The operating profit in 2025 was NTD220,250 thousand, an increase by $40\%$ from the NTD157,476 thousand in the previous year. Notwithstanding, in 2025, the sharp appreciation of NTD generated the net foreign exchange loss amounting to NTD45,178 thousand, resulting in a net profit after tax attributable to parent company of NTD148,979 thousand. This represents a decrease by NT$99,060 thousand or $40\%$ compared to the net profit after tax of NTD248,039 thousand in 2024. The earnings per share after tax for 2025 were NTD1.36.

Unit: NTD Thousand

Item	2024	2025	Change (%)
Net Operating Revenue	4,797,370	4,976,319	4%
Gross profit	1,040,921	1,102,061	6%
Operating Income	157,476	220,250	40%
Net income before tax	279,091	201,872	-28%
Net profit after tax attributable to the parent company	248,039	148,979	-40%
Basic earnings per share (NT$)	2.48	1.36	-45%

The Company has proactively advanced its sustainability initiatives by voluntarily disclosing its 2022 Sustainability Report in 2023, ahead of regulatory requirements. Furthermore, in the 11th Corporate Governance Evaluation (evaluation year 2024), the Company advanced to rank within the second tier $(6\% -20\%)$ of the evaluation.

(II). Revenue Forecast and Realization

In accordance with current laws and regulations, the Company did not disclose its 2025 financial forecast to the public. The Company's 2025 actual revenue increase by $4\%$ from 2024, while its net profit after tax attributable to the parent company even decreased by $40\%$ from 2024.

(III). Financial Income and Expenses and Profitability Analysis

Year Analysis Item		2024	2025
Financial Structure	Liabilities to Assets Ratio	50.78%	52.37%
	Long-term Capital to Fixed Assets Ratio (%)	192.19%	180.78%
Debt Service Ability	Current Ratio (%)	196.25%	187.32%
	Quick Ratio (%)	145.48%	137.04%
Profitability	Return on Total Assets (%)	2.76%	1.73%
	Return on Equity	4.66%	2.72%
	Profit Margin	4.36%	2.76%
	Earnings Per Share (NT$)	2.48	1.36

(IV). Research and Development

Automobile

(1) In view of the extensive application of solenoid valves in systems such as powertrain, steering, damping, and braking for new energy vehicles, the Company continues to optimize the processing technologies for dynamic and static iron cores, valve cores, and valve bodies to enhance production capacity and meet future market demand.

(2) In response to the increasing market share of electric vehicles, the Company continues to optimize the processing technology for charging terminals and enhance production capacity to meet future market demand.

(3) As brake-by-wire systems have become the mainstream in the market, the Company continues to optimize the processing technologies for piston cylinders and piston bodies to enhance production capacity and meet future market demand.

(4) Given that scroll compressors have become a core component of electric vehicle thermal management systems, the Company continues to optimize the processing technologies for dynamic and static scroll plates to enhance production capacity and meet future market demand.

(5) Develop and enhance metal processing technologies to meet customers' demand for high-precision products.

(6) Development for the process of automotive seat belt products, metal forming, sensors, and component assembly.

Industrial Application

(1) Developing semiconductor testing and packaging slot processes and supporting the establishment of facilities in Thailand by major semiconductor equipment manufacturers. The exclusive production line will be added to Global Tek's factory in Thailand, and will be developed in tandem with the aforementioned semiconductor equipment manufacturer's factory in Thailand.

(2) Developing a vacuum brazing process for key components of high-end pressure gauges.

(3) Completing the development of a double-sided grinding process for titanium alloy parts, development and processing of high-precision 718 Inconel axis, and preparing for the mass production of key components used in oil-free magnetic bearing HVAC compressors.

(4) Components for humanoid robot joint actuator.

Aerospace

(1) Constantly developing plasma polishing technology for high surface accuracy product components.

(2) Development of key components for drones, processes related to the machining of titanium alloy blades for industrial and aerospace engines, and key components of aircraft electromagnetic brake systems.

(3) Key components for LEO satellites.

Medical industry

(1) Set up an automated production line for manufacturing medical minimally invasive surgical staplers.

Production & manufacturing: Fully implementing the MES system across the entire facility to achieve digitalized and lean production management.

(1) Wuxi Factory:

i. Expand the transportation application of AGV in the factory area, and promote the

production to be more refined.

ii. Planned the installation of a second 300-micron metal particle ultrasonic vacuum cleaning line to meet the high cleanliness requirements for electronic components, hydraulic valve bodies, and connectors driven by the increasing intelligence of automobiles.

iii. In response to the growing demand for sustainability and to diversification of geopolitical risks, we are not only relocating some equipment to Thailand for production but are also actively preparing for future expansion plans to support continued operating revenue growth.

(2) Suzhou factory:

Through the acquisition of shares from the original shareholders and the renaming of the Suzhou factory to Global Tek (Suzhou) Precision Industry, along with continuous improvements to overall operational management and investment in related forging and blade gear equipment, the Company has now received a large order for heat dissipation and liquid cooling from a major Japanese customer. It is expected to turn losses into profits in 2026 and maintain healthy growth.

(3) Xi'an and Tongchuan factories:

i. Xi'an Factory: Similarly anticipating a surge in liquid-cooling demand, we are not only increasing precision casting capacity but also expanding the production area at the Xi'an facility. We are also bringing in strategic precision machining partners to operate as a factory-within-a-factory, fostering collaboration and maximizing operational efficiency and investment returns.

ii. With the construction of Tongchuan Precision Casting factory, its processes and products have been certified by key customers' quality systems. Given the growth in the heat dissipation liquid cooling system business, we plan to expand the factory's precision casting production line capacity from 60 to 100 tons per month to meet the demand for key components, valves, for liquid cooling and heat dissipation systems.

(4) Taiwan Factory:

Since integrating the resources of the Xinwu and Youshi factories last May, we have been streamlining the organization to achieve professional division of labor and resource integration. We also established a professional technical department to enhance technology and gradually strengthen the automation of our in-house production lines to expand economic scale and efficiency.

(5) AvioCast Inc. Factory:

i. The focus will be on increasing production capacity, per capita contribution and reducing defect rates.

ii. Continue to strengthen organizational change and promote automation.

iii. The Company will introduce advanced German 3D core printing technology to improve the development efficiency of sand casting products and reduce development costs, enabling it to secure new business opportunities.

iv. The Company will gradually replace old machines with advanced automated systems to improve production capacity and efficiency.

(6) Thailand Factory

The first phase of construction will continue, including the office building (7,144 square meters), the restaurant (3,300 square meters), and the production factory for Building A (13,680 square meters). The project is expected to be completed by late April and early May 2026, followed by organizational development and factory setup. The remaining factories, Buildings B and D, will be completed successively in mid-2026 to accommodate customer order transfers driven by geopolitical risk diversification.

II. Summary of the 2025 business plan

The promotion of sustainable governance has become a key focus of investors and authorities in global capital markets in addition to financial gain. Before request by the regulatory authorities, Global Tek has already voluntarily disclosed the ISO 14064 greenhouse gas inventory information and conducted ISO 14064 greenhouse gas verification for the first time in 2023. Global Tek has proactively released the Sustainability Report ahead of schedule in 2023 and published its English version of initial sustainability report in 2024. Its 2025 Sustainability Report was also honored by the Silver Award for Sustainability Report - Traditional Manufacturing Sector - Category II organized by Taiwan Institute for Sustainable Energy.

There is no end to the pursuit of sustainable governance, only continuous effort. In 2025, demonstration products from Taiwan factories of Global Tek will achieve ISO 14067 product carbon footprint certification. As part of its further efforts to reduce carbon emissions, the Company also obtained ISO 50001 certification for energy management systems at its facilities in Taiwan, Wuxi, and Xi'an in the same year. For the regional care surrounding its Headquarters, Global Tek has deepened its commitment to environmental stewardship through increasingly meaningful initiatives. Beyond maintaining the cleanliness of the sports park near the Xinwu factory, Global Tek has forged a connection with Yushan National Park Administration to promote Yellow-throated Marten ecological conservation, academic research, and environmental education. The company has also signed a "Memorandum of Understanding for Yellow-Throated Marten Conservation" with the Administration to jointly fulfill their responsibility as global citizens to protect the ecology.

As for the key points of new business opportunities in the automotive application field, in response to the different development trends of the automotive market in China and other countries, the Company balances its business in both fuel-powered and new energy vehicles to diversify operational risks and ensure growth in revenue and profitability. Developed suppliers with capabilities in new technologies to capture new business opportunities and developed a series of automotive seatbelt products. In the realm of industrial applications, beyond developing new high-end aluminum bicycle components, our endeavors also encompass semiconductor IC test sockets, vacuum brazing for high-end pressure gauges, HVAC compressor bushings, and liquid cooling solutions for the AI industry. In the aerospace application sector, Global Tek's machining capabilities plus AvioCast Inc.'s casting and surface treatment expertise may help capture more new business opportunities for commercial aircraft, drones and low-orbit satellites. It continues to develop plasma polishing technology for high-surface-precision products and also to expand its customer base and product offerings in the medical device market. In the face of the industry competition, the Company is actively transforming to focus on high-margin markets, with a strategic emphasis on key components such as pumps, plates, joints, and valve bodies for AI data center liquid cooling systems, as well as precision parts for humanoid robot servo joints and other forward-looking businesses, to ensure continued profitability and growth.

In terms of production, the current US government's imposition of tariff barriers in 2025 has undoubtedly catalyzed global conflicts. In 2024, the Board of Directors approved an investment in Thailand to purchase land and build a factory, and in 2025, the Company entered a large-scale construction period to establish a new production base for the Group and its suppliers, consolidating existing customers and continuing to develop new business opportunities.

In response to the shift in the global supply chain from "globalization" to a deeper focus on "localization," market competition is no longer solely about scale. Building regional supply systems and digitally driven smart services are now essential for companies to stay ahead. During the industrial reshuffle where only the strong survive, Global Tek proactively breaks down traditional boundaries. We not only unite the team around a shared vision for green and digital transformation, but also bolster our resilience to geopolitical risks through a distributed manufacturing strategy. We insist on the three principles of execution: Making no excuses, simplifying complexity into order, and setting clear timelines, and strengthen our resilience and build a solid foundation on the large platform

to leap onto the global high-end stage.

III. Future development strategies, impact of the external competitive environment, the regulatory environment, and the overall business environment

Faced with the external challenges of volatility in 2025, Global Tek team deeply understands that only change is constant. Embracing a "Believing is Seeing" mindset, we view adversity as a touchstone and transform it into the driving force for organizational evolution. Amid the complex and evolving global economic landscape, Global Tek will leverage collective intelligence for precise targeting and optimize the value chain to deliver success for its customers, ensuring stable growth even during times of volatility. In response to the demand from Japanese and American system suppliers of AI server liquid cooling for business opportunities and the development of new business opportunities in the semiconductor equipment and aerospace markets, Global Tek needs to invest in capital equipment in Taiwan, Mainland China, and Thailand. This investment will ensure we are well-positioned to seize these opportunities and achieve double-digit annual revenue growth. We sincerely thank all shareholders for their continued support and trust, and we look forward to your ongoing encouragement and guidance as we navigate this exciting new chapter together and build a stable and prosperous future for Global Tek!

Chairman Liu, Tsu-Yin

President Huang, Yah-Hsing

Sincerely

Two. Corporate Governance Report

I. Information on the Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, and Supervisors of Divisions and Branch Units

(I) Board of Directors and Supervisors Information

April 11, 2026; Unit: Shares

Title	Nationality or place of registration	Name	Gender (Note 2) Age	Date of Appointment	Term	Date of Initial Appointment	Holding Shares at the Time of Appointment		Current Shareholding		Spouses and minor children currently holding shares		Shares held on behalf of others		Main Experience	Currently holding positions in this Company and other companies.	Other executives, directors, or supervisors who have spouses or relatives within the second degree of kinship			Remarks
							Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio			Title	Name	Relationship
Chairman	Republic of China	Liu, Tsu-Yin	Female between the age of 70-79	June 19, 2025	3	2009.12.01	3,226,665	2.94%	3,226,665	2.93%	6,226,695	5.66%	0	0	National Taipei University of Business EMBA Master of Business Administration in ESG and Digital Carbon Management Institute staff at the Aviation Department of National Chengchi University and clerk of Taiwan Land Bank	Chairman of Global Tek Co., Ltd. Director and legal representative of Global Tek Co., Ltd. (Wuxi) Director and legal representative of Global Tek Metal Manufacturing (Shaanxi) Co., Ltd. Director of Global Tek Fabrication Co., Ltd. (Samsa) Director of GLOBAL TEK 株式会社. Director and legal representative of Global Tek (Suzhou) Precision Industry Co., Ltd. Legal Representative of AvioCast Inc. Representative of GLOBAL TEK GROUP (THAI) CO., LTD. Representative of GLOBAL TEK AVIATION (THAI) CO., LTD.	Director	Huang, Yah-Hsing	Spouse	Note 1
Director	Republic of China	Huang, Yah-Hsing	Male between the age of 70-79	June 19, 2025	3	2009.12.01	6,226,695	5.67%	6,226,695	5.66%	3,226,665	2.93%	0	0	Company founder EMBA Masters in National Enterprises, National Taiwan University National Taipei University of Business (formerly National Taipei College of Business) Tan Accounting Department Business Associate Manager of Primax Electronics Ltd. Vice President of GLOBAL PMX CO., LTD. Procurement Supervisor of Taiwan International Standard Electronics Co., Ltd.	Company General Manager Director of Global Tek Co., Ltd. (Xi'an) Director of Global Tek Co., Ltd. (Wuxi) Director of Global Tek Metal Manufacturing (Shaanxi) Co., Ltd. Director of GLOBAL TEK CO., LTD. Director of Global Tek Fabrication Co., Ltd. (HK) Director of Global Tek GmbH Director of Global Tek (Suzhou) Precision Industry Co., Ltd. Legal Representative of AvioCast Inc. Director of GLOBAL TEK 株式会社. Representative of GLOBAL TEK GROUP (THAI) CO., LTD. Representative of GLOBAL TEK AVIATION (THAI) CO., LTD.	Director	Liu, Tsu-Yin	Spouse	Note 1

Title	Nationality or place of registration	Name	Gender (Note 2) Age	Date of Appointment	Term	Date of Initial Appointment	Holding Shares at the Time of Appointment		Current Shareholding		Spouses and minor children currently holding shares		Shares held on behalf of others		Main Experience	Currently holding positions in this Company and other companies.	Other executives, directors, or supervisors who have spouses or relatives within the second degree of kinship
							Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Ratio			Title	Name	Relationship
Director	Republic of China	Ting, Ling-Chuan	Male between the age of 50-59	June 19, 2025	3	2022.6.23	11,523,000	10.49%	13,523,000	12.29%	0	0	0	0	Information Department of Yu Chang Technical & Commercial Vocational Senior High School, YCVS	Chairman of Juyuan Industrial Co., Ltd.	--	--	--
Independent Director	Republic of China	Chang, Shih-Chia	Male between the age of 60-69	June 19, 2025	3	2022.6.23	0	0	0	0	0	0	0	0	Ph.D., Graduate School of Business, National Taiwan University Master of Science in Industrial Engineering, University of Texas, Arlington, USA Bachelor of Industrial Management, National Taiwan University of Science and Technology Professor and Dean of the School of Management, National Taipei University of Business	Professor, Business Management Department, National Taipei University of Business Independent Director, Shengnan Electronic Technology Co., Ltd.	--	--	--
Independent Director	Republic of China	Chen, Shiang-Ju	Female between the age of 50-59	June 19, 2025	3	2022.6.23	0	0	0	0	0	0	0	0	EMBA, National Taiwan University MBA, California State University, USA Bachelor of Business Administration, California State University, USA General Manager of First Securities Director of First Financial Holdings / First Securities / First Securities Asia Limited / First Worksec Securities Limited Senior Vice President, Chief Executive and Director of Hong Kong Branch of China Trust Securities Investment Banking Department Vice President and Senior Director of Investment Banking Department of China Trust Bank Director of Investment Banking Department and Vice President of Equity Capital Market Department (ECM), Nomura Securities Co., Ltd., Vice General Manager of Research Department/Fixed	--	--	--	--

Title	Nationality or place of registration	Name	Gender (Note 2) Age	Date of Appointment	Term	Date of Initial Appointment	Holding Shares at the Time of Appointment		Current Shareholding		Spouses and minor children currently holding shares		Shares held on behalf of others		Main Experience	Currently holding positions in this Company and other companies.	Other executives, directors, or supervisors who have spouses or relatives within the second degree of kinship			Remarks
							Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Ratio	Shareholding Ratio	Number of Shares			Title	Name	Relationship
															Income Department/Investment Banking Department/Overseas Department, Capital Securities Corp.
Independent Director	Republic of China	Chen, Pei Chi	Female between the age of 40-49	June 19, 2025	3	June 19, 2025	0	0	0	0	0	0	0	0	Department of Financial and Economic Law, Chung Yuen Christian University Lawyer, Legal Consel Department, Chailcase Finance Co., Ltd.	Managing Partner, Pi Sheng International Commercial Law Office	-	-	-	-
Independent Director	Republic of China	Chen, Wan Jin	Male between the age of 60-69	June 19, 2025	3	June 19, 2025	0	0	0	0	0	0	0	0	PhD, Department of Economics, Xiamen University Master of Finance, National Central University Responsible person and Senior Vice President of Capital Market of Cathay Securities in the Greater China Region Vice President, Microbio Co.Ltd. Group and Diamond Biofund Inc.	Independent Director, ABICO NetCom Co., Ltd. Independent Director, Nice Garden Industrial Co., Ltd.	-	-

Note 1: Explanation of the Necessity of the Chairman and General Manager Being Spouses: The Chairman and the General Manager of our Company are married to each other. Both have long-term experience in the metal processing industry, with a deep understanding of industry trends and customer relationships. Their contributions to the company's operations and performance align with our corporate goals. Additionally, our Company has a board of seven directors, including four independent directors, with the majority of directors not holding concurrent positions as employees or managers, thereby strengthening corporate governance.
Note 2: Explanation and measures to improve gender diversity on the board when either gender holds less than one-third of board seats: The Company has a total of seven board seats, with three currently held by female directors, accounting for $43\%$ , to enhance the board gender diversity.

Major Shareholders of the Legal Person Shareholders: none
Among the major shareholders in the table, corporate entities are the main shareholders: none

Disclosure of Director's Professional Qualifications and Independence of Independent Directors:
April 11, 2026

| Conditions
Name | Professional Qualifications and Experience | Independence Status | Number of independent directors serving concurrently in other publicly listed companies. |
| --- | --- | --- | --- |
| Liu, Tsu-Yin | Possesses a background in banking and extensive experience in the metal processing industry; has developed a comprehensive understanding of industry trends and customer relationships; holds professional qualifications and expertise in business management, leadership decision-making, industry knowledge, financial accounting, and marketing; no circumstances falling under Article 30 of the Company Act. | Not applicable. | 0 Companies |
| Huang, Yah-Hsing | Founder of the company; extensive experience in the metal processing industry; has developed a comprehensive understanding of industry trends and customer relationships; holds professional qualifications and expertise in business management, leadership decision-making, industry knowledge, financial accounting, and marketing; no circumstances falling under Article 30 of the Company Act. | Not applicable. | 0 Companies |
| Ting, Ling-Chuan | Possess experience in Company management, leadership decision-making, industry knowledge, financial accounting, marketing, and other professional areas; no circumstances falling under Article 30 of the Company Act. | Not applicable. | 0 Companies |

Conditions Name	Professional Qualifications and Experience	Independence Status	Number of independent directors serving concurrently in other publicly listed companies.
Chang, Shih-Chia	Professor in the Department of Business Administration at National Taipei University of Business, with professional qualifications and experience in Company management, leadership decision-making, industry knowledge, financial accounting, strategic planning, and other areas; no circumstances falling under of Article 30 of the Company Act.	1. On February 27, 2025, the Company conducted an independence review for the independent director candidates and obtained a declaration from the independent directors stating that they meet the qualification requirements set forth in the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" issued by the Financial Supervisory Commission, as well as the declaration required under Article 14-2 of the Securities and Exchange Act. 2. The review for independence reported to the Board of Directors meeting on March 13, 2025 the academic background, experience (including current positions), independent directors' professional qualifications, shareholdings, and restrictions on concurrent positions. Meanwhile, the part-time employment was approved by the employing schools and met the requirements for independent directors' independence.	1 Companies (Independent Director of Shengnan Electronic Technology Co., Ltd.)
Chen, Shiang-Ju	Have financial industry work experience and possess expertise in financial accounting, Company management, leadership decision-making, industry knowledge, marketing, and other areas; no violations of Article 30 of the Company Act.	1. On February 27, 2025, the Company conducted an independence review for the independent director candidates and obtained a declaration from the independent directors stating that they meet the qualification requirements set forth in the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" issued by the Financial Supervisory Commission, as well as the declaration required under Article 14-2 of the Securities and Exchange Act. 2. The review for independence reported to the Board of Directors meeting on March 13, 2025 the academic background, experience (including current positions), independent directors' professional qualifications, shareholdings, and restrictions on concurrent positions, meeting the requirements for independent directors' independence.	0 Companies

Conditions Name	Professional Qualifications and Experience	Independence Status	Number of independent directors serving concurrently in other publicly listed companies.
Chen, Pei Chi	Possess professional qualifications and experience in law, Company management, leadership decision-making, industry knowledge, financial accounting, and other areas; no circumstances falling under Article 30 of the Company Act.	1. On February 27, 2025, the Company conducted an independence review for the independent director candidates and obtained a declaration from the independent directors stating that they meet the qualification requirements set forth in the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” issued by the Financial Supervisory Commission, as well as the declaration required under Article 14-2 of the Securities and Exchange Act. 2. The review for independence reported to the Board of Directors meeting on March 13, 2025 the academic background, experience (including current positions), independent directors’ professional qualifications, shareholdings, and restrictions on concurrent positions, meeting the requirements for independent directors’ independence.	0 Companies
Chen, Wan Jin	Have financial industry work experience and possess expertise in financial accounting, Company management, leadership decision-making, industry knowledge, marketing, and other areas; no violations of Article 30 of the Company Act.	1. On February 27, 2025, the Company conducted an independence review for the independent director candidates and obtained a declaration from the independent directors stating that they meet the qualification requirements set forth in the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” issued by the Financial Supervisory Commission, as well as the declaration required under Article 14-2 of the Securities and Exchange Act. 2. The review for independence reported to the Board of Directors meeting on March 13, 2025 the academic background, experience (including current positions), independent directors’ professional qualifications, shareholdings, and restrictions on concurrent positions, meeting the requirements for independent directors’ independence.	2 Companies (Independent Director of ABICO NetCom Co.,Ltd.; Independent Director of Nice Garden Industrial Co., Ltd.)

4. Board Diversity and Independence:

(1) Board Diversity:

The selection of directors in our Company is based on various criteria, including educational and professional backgrounds, shareholding, as well as values such as gender, age, nationality, and culture. Our goal is to have at least one female director and at least one director with a financial and accounting background.

The Company's 7th Board of Directors is composed of seven members, including four independent directors. The board members possess expertise and skills in various fields, such as law, business management, leadership decision-making, industry knowledge, financial accounting, marketing, and strategic development. Currently,

there are seven directors in office, three of whom are female, accounting for 43% of the total. Specifically, female directors account for more than one-third of the total Board seats. The four independent directors make up 57% of the total, demonstrating the implementation of the board diversity concept and achievement of management objectives.

(2) Independence of the Board of Directors:

The Company’s 7th Board of Directors is composed of seven members, including four independent directors. Currently, there are seven directors in office, three of whom are female, accounting for 43% of the total. The four independent directors make up 57% of the total. There are two directors who are spouses or relatives within the second degree of kinship with each other, accounting for 29%. The Board of Directors of the Company does not have any situations specified in Article 26-3 of the Securities and Exchange Act. The independence of the Board of Directors meets the requirements about independence.

(II) Information on the President, Vice Presidents, Assistant Vice Presidents, and Supervisors of Divisions and Branch Units
April 11, 2026; Unit: Shares

Title	Name	Nationality	Gender	Date of Appointment	Shareholding		Spouses and Minor Children Holding Shares		Shares held on behalf of others		Shareholding Ratio	Shareholding	Main Experience	Currently holding positions in this Company and other companies	Managers with spouses or relatives within the second degree of relationship
					Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Ratio					Title	Name	Relationship
President	Huang, Yah-Hsing	Republic of China	Male	2008.11.07	6,226,695	5.66%	3,226,665	2.93%	0	0	Company founder EMBA Masters in National Enterprises, National Taiwan University National Taipei University of Business (formerly National Taipei College of Business) Tax Accounting Department Business Associate Manager of Primax Electronics Ltd. Vice President of GLOBAL PMX CO., LTD. Procurement Supervisor of Taiwan International Standard Electronics Co., Ltd.	Company General Manager Director of Global Tek Co., Ltd. (X/an) Director of Global Tek Co., Ltd. (Wuxi) Director of Global Tek Metal Manufacturing (Shaanxi) Co., Ltd. Director of GLOBAL TEK CO., LTD. Director of Global Tek Fabrication Co., Ltd. (HK) Director of Global Tek GmbH Director of Global Tek (Suzhou) Precision Industry Co., Ltd. Legal Representative of AvioCast Inc. Director of GLOBAL TEK 格式合作 Representative of GLOBAL TEK GROUP (THAI) CO., LTD. Representative of GLOBAL TEK AVIATION (THAI) CO., LTD.	—	—	—	—	Note 1
President of the Taiwan and Thailand Factories	Liu, Ssu-Chien	Republic of China	Male	2025.12.01	0	0	0	0	0	0	EMBA, Chang Gung University Department of Industrial and Systems Engineering, Chung Yuan Christian University President of Trio Group, Thailand Factory EVP of Manufacturing Group of KHS Musical Instruments Co., Ltd. and President of KHS Japan Vice President of Manufacturing, Eson Precision Ind. Co., Ltd.	None	—	—	—	—	—
General Manager of the Wuxi Factory and Suzhou Factory	Liu, Kuang-Hung	Republic of China	Male	2003.05.15 (Note 2)	1,910,000	1.74%	33,000	0.03%	0	0	Master of Medical Engineering, Institute of Medical Engineering, Chung Yuan Christian University Director of Global Tek Automotive Business Department	Director of Global Tek Co., Ltd. (Wuxi) Director of Global Tek (Suzhou) Precision Industry Co., Ltd.	—	—	—	—	—
Director of Automotive Division	Chang, Yang-Chin	Republic of China	Male	2000.07.11 (Note 2)	110,000	0.10%	0	0	0	0	Master of Business Research, Chang Gung University Engineering Manager of GLOBAL PMX CO., LTD.	None	—	—	—	—	—
Director of Advanced Industrial Products Division	Lin, Yuan-Ming	Republic of China	Male	2014.01.01	0	0	0	0	0	0	Master of Mechanical Engineering from Imperial College London H.C. General Manager, Starck GmbH Taiwan Branch Henkel AG & Co., Electronic Business Unit Director	None	—	—	—	—	—
Director of Aerospace Division	Chiang, Chun-Yi	Republic of China	Male	2025.03.01	0	0	0	0	0	0	Bachelor of Department of Mechanical Engineering of Nayryu Institute of Technology Executive assistant to the President of Taigene Electric R&D and manufacturing manager at Racing Electric Instrument Co., Ltd.	None	—	—	—	—	—

Title	Name	Nationality	Gender	Date of Appointment	Shareholding		Spouses and Minor Children Holding Shares		Shares held on behalf of others		Shareholding Ratio	Main Experience	Currently holding positions in this Company and other companies	Managers with spouses or relatives within the second degree of relationship			Remarks
					Number of Shares	Shareholding Ratio	Number of Shares	Rate	Shareholding Ratio	Number of Shares				Title	Name	Relationship
Director of Manufacturing Division	Chang, Chien-Chung	Republic of China	Male	2021.03.18	11,070	0.01%	0	0	0	0	0	National Central University EMBA Program Stock Chief of Shinkong Synthetic Fibers Corporation Department Head of Zig Sheng Industrial Co., Ltd. Deputy Engineering Manager at Freudenberg Far Eastern Spanweh Co., Ltd.	None	—	—	—	—
Deputy Director of the Supply Chain Management Department	Yeh, Chao-Lin	Republic of China	Male	2022.07.01	10,000	0.01%	0	0	0	0	0	Industrial Engineering Department, Daych University Deputy Director of the Procurement and Logistics Department at Global Tek Industrial Co., Ltd. Quality Assurance Manager, Suzhou Plant, Hochen Electronics Technology Co., Ltd. Deputy Manager of the Materials Department, Kin Chung Technology Co., Ltd.	None	—	—	—	—
Director of Technology Department	Yeh, Chin-Cheng	Republic of China	Male	2026.03.02	0	0	0	0	0	0	0	Bachelor's and master's degrees in mechanical engineering from Chang Yuan Christian University Director of CNC Processing Department, Scandinavian Health Limited Vice President of Aerospace Department, Global Tek Industrial Co., Ltd.	None	—	—	—	—
Chief Financial Officer and Financial Manager	Gau, Cheng-Hsing	Republic of China	Male	2018.12.19	0	0	0	0	0	0	0	EMBA of National Taiwan University Master of Business Administration, University of Rochester, USA Chief Financial Officer of Phalanx Biotech Group Chief Financial Officer of Microbase Technology Corp.	None	—	—	—	—
Accounting Manager	Lin, Yu-Shun	Republic of China	Male	2025.12.23	0	0	0	0	0	0	0	Department of Accounting, Fu Jen Catholic University Financial Manager, Formosa Saint Jose Corporation Senior Financial and Accounting Manager, RICH-BONOUR INTERNATIONAL DESIGNS CO. LTD. Financial and Accounting Manager, Dongguan Tymphany Acoustic Technology Co., Ltd.	Accounting Manager of GLOBAL TEK CO., LTD.			—	—
Audit Manager	Kao, Ming-Pi	Republic of China	Female	2023.7.1	0	0	0	0	0	0	0	Department of Accounting, Chung Yuan Christian University Assistant Manager of Audit at New Applied Materials Co., Ltd. Deloitte Taiwan Deputy Team Leader	None	—	—	—	—

Title	Name	Nationality	Gender	Date of Appointment	Shareholding		Spouses and Minor Children Holding Shares		Shares held on behalf of others		Main Experience	Currently holding positions in this Company and other companies	Managers with spouses or relatives within the second degree of relationship			Remarks
					Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio			Title	Name	Relationship
Corporate Governance Supervisor	Chim, Jung-Yao	Republic of China	Male	2023.5.11	0	0	0	0	0	0	Department of Finance and Financial Management, Feng Chia University Assistant Manager of Finance and Accounting at Chyi Ding Technologies CO., Ltd. Danen Technology Corporation Financial Manager	None	-	-	-	-
Director of Information Center	Chang, Che-Ming	Republic of China	Male	2024.07.01	0	0	0	0	0	0	Executive MBA Program of Business Management, College of Management of National Taipei University of Technology Bachelor of Department of Applied Mathematics of Feng Chia University Information Technology Manager:of LITE-ON Technology	None	-	-	-	-
Special Assistant	Lin, Yi Cheng	Republic of China	Male	2025.04.01	0	0	0	0	0	0	Master of Business Administration, Boston University Questrom School of Business. Department of Chemistry of Chinese Culture University Vice President of Department of Financial Investment, Chien Kuo Construction Co., Ltd. Chief Investment Officer of Jih Sun Financial Holding Co., Ltd. Chief Investment Officer of Eastspring Investments	None		-	-	-

II. Remuneration of Directors, Supervisors, President, and Vice Presidents in the Most Recent Year

(I) Remuneration of General Directors and Independent Directors:

Unit: NTD Thousand; %

Title	Name	Directors' remuneration	The total amount of A B, C and D and as a percentage of net income	Remuneration for part-time employees	The total amounts and proportions of post-tax net income for A, B, C, D, E, F and G.	Receipt of remuneration from non-subsidiary investee companies or the parent Company
Remuneration (A)	Retirement pension (B)	Directors' remuneration (C) Note	Business execution expenses (D)	Salary, bonuses, and special allowances etc. (E)	Retirement pension (F)	Employee remuneration (G)
The Company	All companies mentioned in the Financial Report	The Company	All companies mentioned in the Financial Report	The Company	All companies mentioned in the Financial Report	The Company (Total Amount/Proportion)
Chairman	Hsingying Investment Co., Ltd.	0	0	0	0	0
Representative: Liu, Tsu-Yin Re-elected as an individual on June 19, 2025	0	0	0	0	557	557
Director	Huang, Yah-Hsing	0	0	0	0	557
Director	Ting, Ling-Chuan	8	8	0	0	463
Independent Director	Huang, Ming-Chan Removed upon re-election on June 19, 2025	388	388	0	0	0
Independent Director	Tsai, Rurng-Terng Resigned on May 15, 2025	325	325	0	0	0
Independent Director	Chang, Shih-Chia Re-elected on June 19, 2025	768	768	0	0	0
Independent Director	Chen, Shiang-Ju Re-elected on June 19, 2025	760	760	0	0	0
Independent Director	Chen, Wan Jin New independent director upon re-election on June 19, 2025	443	443	0	0	0
Independent Director	Chen, Pei Chi New independent director upon re-election on June 19, 2025	443	4430	0	0	0
	Total	3,135	3,135	0	0	1,577

Note: The individual allocation amounts for director remuneration are just proposed figures.

The policy, system, standards, and structure for remunerating independent directors should clearly outline their responsibilities, risks, time commitment, and other relevant factors, as well as specify the amount of remuneration to be paid.

Our company has established a "Director and Functional Committee Members Remuneration Policy." Under this policy, independent directors are compensated monthly for their responsibilities, risks, and the maintenance of their independence, starting from the day they are elected. Additionally, those serving on functional committees receive a fixed remuneration each quarter. Independent directors do not participate in the distribution of director remuneration. They are also reimbursed for travel expenses based on the actual number of board meetings they attend. For the general director remuneration, in accordance with Article 18 of the Company's Articles of Incorporation, if the Company makes a profit in a given year, no more than 2% thereof shall be allocated as the remuneration to directors. This is reviewed and approved by the Remuneration Committee, and reported to the annual general meeting after it is submitted to the Board of Directors for resolution pursuant to laws. The remuneration is paid based on the degree of their involvement in the Company's operations and the value of their contribution, as well as the Company's long-term operational performance and the Company's operational risks. If a director of the Company holds other positions in the Company, his or her remuneration for such positions shall be paid in accordance with our Company's relevant regulations. The reasonableness of the remuneration is reviewed and then submitted to the Remuneration Committee for approval by the Board of Directors.

In addition to the disclosure in the table above, the directors of the Company did not receive any remuneration in the most recent fiscal year for providing services, such as serving as consultants to the parent Company or other companies included in the financial reports, or as non-employee advisor to affiliated investment businesses.

(II) Remuneration for supervisors: Not applicable, as an audit committee has been established to replace supervisors.
(III) Remuneration for General Manager and Deputy General Manager, etc.

Unit: NT$ 1,000

Title	Name	Salary (A)		Retirement pension (B)		Bonuses and special allowances, etc. (C)		Employee remuneration amount (D)				The total amounts and proportions of post-tax net income for A, B, C, and D (%)		Receipt of remuneration from non-subsidiary investee companies or the parent Company
		The Company	All companies mentioned in the Financial Report	The Company	All companies mentioned in the Financial Report	The Company	All companies mentioned in the Financial Report	The Company		All companies mentioned in the Financial Report		The Company (Total Amount/Proportion)	All companies mentioned in the Financial Report (Total Amount/Proportion)
								Cash amount	Stock amount	Cash amount	Stock amount
President	Huang, Yah-Hsing	10,168	15,446	0	0	2,704	4,574	0	0	0	0	12,872 8.64%	20,020 13.44%	0
President of the Taiwan and Thailand Factories	Liu, Ssu-Chien (Note 1)
General Manager of the Wuxi Factory and Suzhou Factory	Liu, Kuang-Hung
President of the Taiwan Factories	Lo, Chun-Hao (Note 2)
General Manager of the Taiwan Factories	Chan, Chien-Wei (Note 3)

Note 1: Liu, Ssu-Chien, the General Manager of Taiwan and Thailand factories, took office on December 1, 2025.
Note 2: The General Manager of the Taiwan Factory, Lo, Chun-Hao, was transferred to the position of Senior Consultant on September 1, 2025, who shall not be considered as a managerial officer any longer. Besides, he resigned on October 31, 2025.
Note 3: Chan, Chien-Wei, the Deputy General Manager of Taiwan factory, resigned on March 31, 2026.

Salary Grade Table

Pay Scale for General Managers and Deputy General Managers at our Company	Names of the General Manager and Deputy General Manager
	The Company	All companies mentioned in the Financial Report (E)
Less than NT$1,000,000	Liu, Ssu-Chien (Note 1)	Liu, Ssu-Chien (Note 1)
NT$1,000,000 (inclusive) to NT$2,000,000 (exclusive)	None	None
NT$2,000,000 (inclusive) to NT$3,500,000 (exclusive)	None	None
NT$3,500,000 (inclusive) to NT$5,000,000 (exclusive)	Lo, Chun-Hao (Note 2) and Chan, Chien-Wei (Note 3)	Lo, Chun-Hao (Note 2) and Chan, Chien-Wei (Note 3)
NT$5,000,000 (inclusive) to NT$10,000,000 (exclusive)	Huang, Yah-Hsing	Huang, Ya-Hsing and Liu, Kuang-Hung
NT$10,000,000 (inclusive) to NT$15,000,000 (exclusive)	None	None
NT$15,000,000 (inclusive) to NT$30,000,000 (exclusive)	None	None
NT$30,000,000 (inclusive) to NT$50,000,000 (exclusive)	None	None
NT$50,000,000 (inclusive) to NT$100,000,000 (exclusive)	None	None
Over NT$100,000,000	None	None
Total	Four people	Five people

(IV) Information on the remuneration of the top five highest-paid executives: Not applicable.

Manager's name responsible for distributing employee remuneration and details of the distribution

Unit: NT$ 1,000

	Title	Name	Stock amount	Cash amount	Total	The percentage of total amount relative to net profit after tax (%)
Manager	General Manager	Huang, Yah-Hsing	0	0	0	0%
	President of the Taiwan and Thailand Factories	Liu, Ssu-Chien
	General Manager of the Wuxi Factory and Suzhou Factory	Liu, Kuang-Hung
	Director of Automotive Division	Chang, Yang-Chin
	Director of Advanced Industrial Products Division	Lin, Yuan-Ming
	Deputy Director of the Supply Chain Management Department	Yeh, Chao-Lin
	Director of Manufacturing Division	Chang, Chien-Chung
	Director of Aerospace Division	Chiang, Chun-Yi
	Director of Technology Department	Yeh, Chin-Cheng
	Director of Information Center	Chang, Che-Ming
	Chief Financial Officer	Gau, Cheng-Hsing
	Accounting Manager	Lin Yu-Shun
	Corporate Governance Supervisor	Chien, Jung-Yao
	Audit Manager	Kuo, Ming-Pi
	Special Assistant (Spokesperson)	Lin, Yi Cheng

(V) Respectively compare and explain the analysis of the total remuneration paid to the directors, supervisors, general manager, and deputy general manager of our Company, as well as the consolidated financial statements of all companies, in the past two years. This analysis will be presented as a percentage of the after-tax net income reported in the individual or individual financial reports. Additionally, the policy, standards, and composition of remuneration, the procedure for setting remuneration, and the relationship with operational performance and future risks will be explained:

The remuneration paid to the directors, supervisors, general manager, and deputy general manager of our Company in the past two years was calculated as a ratio of the net profit after tax in the individual or separate financial reports.

Unit: NT$ 1,000; %

| Analysis Item | 2024
Total remuneration amount and its proportion to net profit (net loss) after tax | | | | 2025
Total remuneration amount and its proportion to net profit (net loss) after tax | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | The Company | | All companies mentioned in the Financial Report | | The Company | | All companies mentioned in the Financial Report | |
| | Total | Proportion | Total | Proportion | Total | Proportion | Total | Proportion |
| Director | 11,090 | 4.33% | 17,584 | 6.86% | 10,474 | 7.03% | 16,949 | 11.38% |
| Supervisor | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| General Manager, Deputy General Manager | 13,641 | 5.32% | 19,078 | 7.44% | 12,872 | 8.64% | 20,020 | 13.44% |

In 2025, the total remuneration received by the Company's directors (including those as employees concurrently) decreased from 2024, primarily due to a decline in net income

and changes in the transportation allowances resulting from the related to one less board meeting. Consequently, the correlation between the net income and changes in remuneration remains reasonable.

The remuneration to the General Manager and Deputy General Manager of the Company in 2025 decreased compared to 2024, primarily due to the transfer of the General Manager and Deputy General Manager and lower bonuses received by them in 2025 compared to 2024.

Remuneration policy, standards and composition, procedures for setting remuneration, and their correlation with operational performance and future risks.

(1) Director remuneration payment principles

The Board of Directors of our company has established the "Director and Functional Committee Remuneration Regulation" and the "Board of Directors Performance Evaluation Regulation" in accordance with the usual standards of the industry. The remuneration for independent directors is determined based on the responsibilities and risks they bear, as well as the maintenance of their independence. From the day of their election, they receive a fixed monthly remuneration. Independent directors do not participate in the distribution of director remuneration. General director remuneration is in accordance with Article 18 of the company's charter. If the company makes a profit in a given year, up to 2% is allocated for director remuneration. This is reviewed and approved by the Salary and Remuneration Committee, and after being legally submitted to the Board of Directors for resolution, it is reported at the annual shareholders' meeting. The remuneration is also based on the degree of their involvement in the company's operations and the value of their contributions, as well as the company's long-term operational performance. The company's operational risks are also taken into consideration when determining the remuneration. If a director of the Company holds other positions in the Company, his or her remuneration for such positions shall be paid in accordance with our Company's relevant regulations. The reasonableness of the remuneration is reviewed and then submitted to the Remuneration Committee for approval by the Board of Directors.

(2) The remuneration of the General Manager and Deputy General Manager

The remuneration of our Company's General Manager, Deputy General Manager, and other managers includes salary, bonuses, and compensation, which are processed in accordance with relevant Company policies on salaries and bonuses. The standards for remuneration are determined by the HR department according to regulations, taking into account the responsibilities and duties of the positions, as well as considering the attraction and retention of excellent management talents. Additionally, industry salary standards (based on external salary surveys) are taken into consideration to agree upon a reasonable remuneration for these roles. The performance of managers is assessed based on a comprehensive evaluation of the following factors: the Company's annual operating results (revenue, gross profit, operating profit, and net profit before tax growth rate), their position and responsibilities, achievement of departmental goals for the year, budget control for the year, implementation of corporate governance and sustainable development practices, continuous improvement efforts, leadership of teams and departments throughout the year, talent development, and adherence to Company culture. In the event of profitability for the fiscal year, 1% to 10% will be allocated for employee remuneration according to Article 18 of the Company's Articles of Incorporation. Performance bonuses and remuneration are issued based on a comprehensive assessment of performance, aiming to achieve motivation. The reasonableness of remuneration is reviewed by the Remuneration Committee and submitted to the

Board of Directors for approval.

(3) Relationship with operational performance and future risks

Our Company's remuneration policy is primarily based on the overall Company performance, taking into consideration individual capabilities, contributions, and achievement of goals as performance indicators for determining payment standards. We also consider industry salary standards to ensure that executive compensation remains competitive in the industry, aiming to retain excellent management talent and establish a positive correlation with operational performance. The performance goals of executives are aligned with risk management to prevent, respond to, and manage potential risks within their scope of responsibility. Important decisions in Company operations are made based on objective and effective information, weighing various risk factors, and thoroughly discussed by management before implementation. The operational performance resulting from these decisions reflects in the Company's profitability, showcasing the correlation between executive compensation and risk management.

III. Implementation of Corporate Governance

(I) The operation of the Board of Directors

In the fiscal year 2025, the Board of Directors held 6 meetings (A), and the attendance of directors is as follows:

Title	Name	Actual attendance frequency (B)	Actual attendance rate (%): [B/A]	Remarks
Chairman	Hsingying Investment Co., Ltd. Representative: Liu, Tsu-Yin	6	100%	Expected attendance rate of 6 times Re-elected as a natural person on June 19, 2025
Director	Huang, Yah-Hsing	6	100%	Expected attendance rate of 6 times Re-elected on June 19, 2025
Director	Ting, Ling-Chuan	6	100%	Expected attendance rate of 6 times Re-elected on June 19, 2025
Independent Director	Huang, Ming-Chan	2	100%	Expected attendance rate of 2 times Removed upon re-election on June 19, 2025
Independent Director	Tsai, Rurng-Terng	2	100%	Expected attendance rate of 2 times Resigned on May 15, 2025
Independent Director	Chang, Shih-Chia	6	100%	Expected attendance rate of 6 times Re-elected on June 19, 2025
Independent Director	Chen, Shiang-Ju	5	83%	Expected attendance rate of 6 times Re-elected on June 19, 2025
Independent Director	Chen, Pei Chi	4	100%	Expected attendance rate of 4 times New independent director upon re-election on June 19, 2025
Independent Director	Chen, Wan Jin	4	100%	Expected attendance rate of 4 times New independent director upon re-election on June 19, 2025

Other matters to be recorded:

I. If the Board of Directors operates under any of the following conditions, the board meeting date, agenda, content, opinions of all independent directors, and the Company's response to the opinions of independent directors should be documented

(I) The items listed in Article 14-3 of the Securities and Exchange Act are as follows: Our Company has established an audit committee. Please refer to the operation of the audit committee.

(II) Apart from the aforementioned matters, there were no other decisions made during board meetings where independent directors expressed opposition or reservation and there is a record or written statement.

II. The implementation status of directors abstaining from conflict of interest resolutions should include:

(I) The 17th meeting of the 6th Board of Directors discussed the issuance of performance bonuses for managers in the second half of fiscal year 2024. Due to the conflicts of interest with directors such as Tsu-Yin Liu and Huang, Ya-Hsing, they temporarily abstained from the meeting based on the principle of conflict of interest and recused themselves from participating in the voting process.

(II) The 1st meeting of the 7th Board of Directors discussed the execution of the industry-academia cooperation and academic reward mechanism contract between the Company and National Taipei University of Business. Due to potential conflicts of interest with Director Chang, Shih-Chia, he temporarily abstained from the meeting based on the principle of conflict of interest and recused himself from participating in the voting process.

(III) The 2nd meeting of the 7th Board of Directors discussed the distribution of employee remuneration for the fiscal year 2024 and the issuance of performance bonuses for

managers in the first half of fiscal year 2025. Due to the conflicts of interest with directors such as Tsu-Yin Liu and Huang, Ya-Hsing, they temporarily abstained from the meeting based on the principle of conflict of interest and recused themselves from participating in the voting process.

III. Listed and OTC companies should disclose information about the evaluation period and duration, evaluation scope, method, and content of the self-assessment (or peer assessment) of the Board of Directors:

The implementation status of the Board of Directors' evaluation

(I) Internal self-assessment:

Evaluation cycle	Evaluation period	Evaluation scope
Performed annually	January 1 to December 31, 2025	(1) Board of Directors
(2) Individual board members
(3) Functional committees of the Remuneration Committee, Audit Committee, and Sustainability and Risk Management Committee.	(1) Internal self-assessment
(2) Self-assessment of board members
(3) Internal self-assessment	(1) Board of Directors' Performance: Evaluated based on five aspects including participation in Company operations, enhancing the quality of board decisions, board composition and structure, director selection and continuous education, internal controls, etc. Assessment result: Excellent.
(2) Individual board members' performance: Evaluated based on six aspects including understanding of Company goals and tasks, awareness of director responsibilities, level of participation in Company operations, management of internal relationships and communication, professional expertise and continuous education of directors, internal controls, etc. Assessment result: Excellent.
(3) Performance of the Remuneration Committee, Audit Committee, and the Functional Committee of the Sustainability and Risk Management Committee: Evaluated based on five aspects including level of participation in Company operations, understanding of committee responsibilities, enhancing the quality of committee decisions, committee composition and member selection, internal controls, etc. Assessment result for the Remuneration Committee: Excellent. Audit Committee assessment result: Excellent. Sustainable Development and Risk Management Committee assessment result: Excellent.
The above assessment results were reported to the Board of Directors' meeting on March 12, 2026.

(II) External evaluation:

The Company, in order to implement corporate governance and enhance the functionality of the Board of Directors, has established performance objectives to improve the operational efficiency of the Board. In accordance with Article 37 of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies,” the Company has adopted the “Rules for Performance Evaluation of the Board of Directors” for compliance. The performance evaluation of the Company's Board of Directors shall be conducted at least once every three years by an external independent professional institution or a team of external experts and scholars.

The external independent professional institution evaluation of the Board of Directors’ performance conducted in 2024 is as follows:

Evaluation agency: Taiwan Investor Relations Association

Evaluation member: Kuo, Tsung-Lin, Wan, Hsin-Ning, Cheng, Hui-I

Evaluation period: October 1, 2023 to September 30, 2024

Evaluation date: October 8, 2024

Report date: October 16, 2024

Date of Submission to the Board of Directors: November 11, 2024

Conclusion of evaluation:

The evaluated company's Board of Directors demonstrates diversity and a sound structure. The Board of Directors, the Remuneration Committee, the Audit Committee, and the Sustainability and Risk Management Committee all hold meetings regularly, with all directors and independent directors actively participating in related meetings. They also continuously pursue further education to stay updated with the latest knowledge and enhance their responsiveness, thereby fulfilling their supervisory responsibilities and obligations. Through the Sustainability and Risk Management Committee, they oversee risk management and corporate sustainability efforts, strengthening corporate governance, improving risk control mechanisms, and promoting sustainable development. Furthermore, the Company conducts regular internal and external performance evaluations of the Board of Directors and functional committees to enhance their operations. In 2023, the Company ranked within the top 21% to 35% of listed companies in the Corporate Governance Evaluation. Overall, the Board of Directors, Remuneration Committee, Audit Committee, and Sustainability and Risk Management Committee are operating effectively. However, corporate governance structure and sustainability performance could be further enhanced through the implementation of the following recommendations.

Suggestions:

Item	Suggestions:	The measures the Company intends to take
I.	Advance the planning to ensure that female directors account for at least one-third of the Board seats	At the 2025 Annual General Meeting, which coincides with the re-election of the Board, the Company plans to appoint three female directors, ensuring that female directors account for more than one-third of the total Board seats.
II.	Establish a succession plan for members of the Board of Directors and key management personnel	The “Succession Plan and Implementation for Members of the Board of Directors and Key Management Personnel” has been disclosed on the Company’s website.
III.	Establish an internal control system for sustainability information management	The system was approved by the Audit Committee on November 11, 2024, and subsequently submitted to the Board of Directors for approval and issuance.
IV.	Prepare an English version of the Sustainability Report	The English version of the Sustainability Report has been completed and uploaded to the MOPS and the Company’s website.
V.	Advance the formulation of linking senior executives’ compensation to ESG performance	It has been reviewed and approved by the Remuneration Committee and the Sustainability and Risk Management Committee on August 13, 2025, and submitted to the Board of Directors for resolution to approve the establishment of the Company's "Regulations Governing Linkage of Remuneration to Senior Management and Sustainability Performance."

IV. Evaluation of the goals and implementation status of strengthening the functions of the Board of Directors for the current year and the most recent year:

The Company has submitted the performance assessment report for the Board of Directors, individual board members, and the functional committees including the Remuneration Committee, Audit Committee and Sustainability and Risk Management Committee for the year 2025 to the Board of Directors' meeting held on March 12, 2026. The assessment result was excellent.

(II) The operational status of the Audit Committee or the participation of the supervisor in the operations of the Board of Directors

The operational status of the Audit Committee: The Audit Committee of the Company held 5 meetings in 2025, and the attendance of independent directors is as follows:

Title	Name	Actual attendance frequency	Actual attendance rate (%)	Remarks
Independent Director	Huang, Ming-Chan	2	100%	Expected attendance rate of 2 times Removed upon re-election on June 19, 2025
Independent Director	Tsai, Rurng-Terng	2	100%	Expected attendance rate of 2 times Resigned on May 15, 2025
Independent Director	Chang, Shih-Chia	5	100%	Expected attendance rate of 5 times Re-elected on June 19, 2025
Independent Director	Chen, Shiang-Ju	4	80%	Expected attendance rate of 5 times Re-elected on June 19, 2025
Independent Director	Chen, Pei Chi	3	100%	Expected attendance rate of 3 times New independent director upon re-election on June 19, 2025
Independent Director	Chen, Wan Jin	3	100%	Expected attendance rate of 3 times New independent director upon re-election on June 19, 2025

The annual focus areas of the Audit Committee:

In accordance with Article 14-5 of the Securities and Exchange Act and Article 6 of the organization regulations of our Audit Committee, matters within the committee's jurisdiction are deliberated and approved by the committee before being submitted to the Board of Directors for resolution.

The primary purpose of the operation of this committee is to supervise the following matters:

(I) The proper expression of the Company's financial statements.
(II) The selection, appointment, independence, and performance of the signing accountant.
(III) The effective implementation of internal controls within the Company.
(IV) The Company's compliance with relevant laws and regulations.
(V) Management of Company's existing or potential risks.

In 2025, the Audit Committee convened 5 meetings. Matters reviewed included: Financial reports, lending of funds to others, the statement on internal control systems, appointment of the CPA for the year, and the internal audit plan. For detailed information on the proposals and resolutions, please refer to other matters to be disclosed.

Other matters to be recorded:

The operation of the Audit Committee, if one of the following situations occurs, shall state the date, session, agenda, dissenting opinions of independent directors, reserved opinions or content of significant recommendations, decision results of the Audit Committee, and the Company's handling of the Audit Committee's opinions.

(I) The items listed in Article 14-5 of the Securities and Exchange Act are as follows:

The date of the Audit Committee meeting	The session	The agenda items	The dissenting opinions, reservations, or significant recommendations of independent directors
2025/3/13	16th meeting of the 3rd Audit Committee	Proposal 1 The Company's operating report for fiscal year 2024, as well as individual financial statements and consolidated financial statements.
Proposal 2 The Company's overseas investment company did not repatriate profits for fiscal year 2024.
Proposal 3 2024 Earnings Distribution Proposal.
Proposal 4 Changing the appointment of the signing accountant for 2025 in this Company and evaluating the independence and suitability of the signing accountant with reference to audit quality indicators.
Proposal 5 The Company established a general policy for “pre-approval of non-assurance services.”
Proposal 6 The Company's domestic unsecured convertible corporate bonds were converted into common stock for the second and third time in the fourth quarter of fiscal year 2024 to issue new shares.
Proposal 7 Proposal to Issue Restricted Employee Stock	None.	All committee members present agreed and approved.	The Board of Directors approved the proposal.

| | | Awards for 2025.
Proposal 8 The Company's “Statement of Internal Control System” for the period from January 1, 2024 to December 31, 2024. | | | |
| --- | --- | --- | --- | --- | --- |
| 2025/5/14 | 17th meeting of the 3rd Audit Committee | Proposal 1 The Company’s consolidated financial report for the first quarter of fiscal year 2025.
Proposal 2 The Company's third domestic unsecured convertible corporate bonds were converted into common stock in the first quarter of fiscal year 2025 to issue new shares.
Proposal 3 Amendment to the Company's internal control system regarding the salary/wage cycle, specifically sections "GTAA-CH106 Overtime Operations" and "GTAA-CH108 Performance Appraisal Operations."
Proposal 4 Amendment to the Company’s Internal Control System “GTAA-CO119 Regulations Governing the Preparation and Reporting of Sustainability Reports.”
Proposal 5 In response to the operational needs of the Thailand factory, the Company plans to increase its investment fund from THB450 million to THB1 billion. | None. | All committee members present agreed and approved. | The Board of Directors approved the proposal. |
| 2025/8/13 | 1st meeting of the 4th Audit Committee | Proposal 1 The Company’s consolidated financial report for the second quarter of fiscal year 2025.
Proposal 2 A proposal to loan US$6 million (approximately BHT192,600 thousand) to the subsidiary in Thailand, GLOBAL TEK GROUP (THAI) CO., LTD.. | None. | All committee members present agreed and approved. | The Board of Directors approved the proposal. |
| 2025/11/13 | 2nd meeting of the 4th Audit Committee | Proposal 1 The Company’s consolidated financial report for the third quarter of fiscal year 2025.
Proposal 2 The Company's third domestic unsecured convertible corporate bonds were converted into common stock in the third quarter of fiscal year 2025 to issue new shares.
Proposal 3 The subsidiary in Thailand wholly owned by the Company, GLOBAL TEK GROUP (THAI) CO., LTD. (hereinafter referred to as “GROUP (THAI)”), proposed to apply for a long-term credit facility from Mega International Commercial Bank Public Company Ltd., Luoyong Branch and ask the Company to provide the endorsement and guarantee.
Proposal 4 Proposal to issue the RSAs totaling 500,000 shares for 2025. | None. | All committee members present agreed and approved. | The Board of Directors approved the proposal. |
| 2025/12/23 | 3rd meeting of the 4th Board of Directors | Proposal 1 The internal audit plan for the fiscal year 2026.
Proposal 2 Amendments to the "Corporate Governance Best Practice Principles" of the Company.
Proposal 3 Qualifications of the accounting officer to be appointed by the Company and review on remuneration. | None. | All committee members present agreed and approved. | The Board of Directors approved the proposal. |

(II) Except for the aforementioned matters, there were no decisions made without approval from the Audit Committee. Furthermore, there were no decisions made that required consent from two-thirds or more of the entire Board of Directors.

II. The execution status of independent directors abstaining from conflicted interests should be documented, including the name of the independent director, the content of the motion, the reasons for abstaining from benefiting, and the participation in voting: None.

III. The communication status between independent directors and the internal audit manager and accountant (should include significant matters, methods, and results of communication regarding the Company's financial and operational conditions):
The internal audit manager of this Company attends meetings of the Audit Committee and the Board of Directors, reporting on the execution status of internal audit work. They also regularly send audit reports and follow-up report results to independent directors for review.
The Company's signing accountant attends meetings of the Audit Committee and the Board of Directors to communicate and discuss matters related to financial reports.
The Company's independent directors communicate with internal audit officers and CPAs at least once a quarter in the Audit Committee, excluding the general directors and management personnel.

Date	Nature of Meeting	Attendees	Counterpart	Communication matters	Communication results
2025/3/13	Audit Committee	Independent directors:
Huang, Ming-Chan; Tsai, Jung-Teng; Chang, Shih-Chia; Chen, Hsiang-Ju	Internal Audit Supervisor	Internal audit report	No comments provided at this meeting

		Internal Audit Manager: Kuo, Ming-Pi EY Taiwan: Cheng, Ching-Piao, CPA (No general directors or management personnel were present on the site.)	Accountant	Communication with CPAs: 2024 Consolidated Financial Statements and Parent Company Only Financial Statements	No comments provided at this meeting
2025/5/14	Audit Committee	Independent directors: Huang, Ming-Chan; Tsai, Jung-Teng; Chang, Shih-Chia; Chen, Hsiang-Ju Internal Audit Manager: Kuo, Ming-Pi EY Taiwan: Cheng, Ching-Piao, CPA (No general directors or management personnel were present on the site.)	Internal Audit Supervisor	Internal audit report	No comments provided at this meeting
			Accountant	Communication with CPAs: Review on the financial statements for the three months ended March 31, 2025.	No comments provided at this meeting
2025/8/13	Audit Committee	Independent directors: Chen, Wan-Chin, Chang, Shih-Chia, Chen, Hsiang-Ju, Chen, Pei-Chi Internal Audit Manager: Kuo, Ming-Pi EY Taiwan: Cheng, Ching-Piao, CPA (No general directors or management personnel were present on the site.)	Internal Audit Supervisor	Internal audit report	No comments provided at this meeting
			Accountant	Communication with CPAs: Review on the financial statements for the three months ended June 30, 2025.	No comments provided at this meeting
2025/11/13	Audit Committee	Independent directors: Chen, Wan-Chin, Chang, Shih-Chia, Chen, Hsiang-Ju, Chen, Pei-Chi Internal Audit Manager: Kuo, Ming-Pi EY Taiwan: Cheng, Ching-Piao, CPA (No general directors or management personnel were present on the site.)	Internal Audit Supervisor	Internal audit report	Suggested deficiency in the subsidiary's loaning of fund: The subsidiary is required to notify the parent company's finance unit of significant transactions such as loaning of fund, and the parent company's finance unit shall oversee and ensure that the subsidiary should prioritize these matters. Company: Already hold the financial and accounting personnel training on September 26, 2025, to strengthen the awareness toward compliance and timeliness of public announcements.
			Accountant	Communication with CPAs: Review on the financial statements for the three months ended September 30, 2025.	No comments provided at this meeting

The supervisor does not participate in the operation of the Board of Directors, as the Company has established an Audit Committee to replace the supervisor.

(III) Corporate governance operations and differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies as well as the reasons for these differences

Assessment items	Operating conditions			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies as well as the reasons for these differences
	Yes	No	Summary explanation
I. Has the Company established and disclosed corporate governance practices in accordance with the 'Corporate Governance Best Practice Principles for Listed and OTC Companies'?	☑		The Board of Directors has established the "Corporate Governance Best Practice Principles" and, on March 23, 2023, and August 10, 2023, the Board of Directors amended the "Corporate Governance Best Practice Principles" in accordance with the amendments to the "Corporate Governance Best Practice Principles for Listed and OTC Companies," and disclosed the amended "Corporate Governance Best Practice Principles" on the Company's website and public information website.	No significant differences observed
II. Company's equity structure and shareholder equity
(I) Has the Company established internal operating procedures for handling shareholder proposals, queries, disputes, and legal matters, and implemented them accordingly?	☑		The Company has a spokesperson and a deputy spokesperson as the primary points of contact for communication with shareholders. It also delegates the handling of shareholder proposals, queries, disputes, and legal matters to a professional shareholder service agency (KGI Securities Co., Ltd.).	No significant differences observed
(II) Does the Company have a list of the major shareholders who control the Company and the ultimate controllers of these major shareholders?	☑		According to the shareholder list provided by the shareholder service agency, the Company has a list of shareholders. At the same time, through interactions with major shareholders, the Company obtains the list of ultimate controllers.	No significant differences observed
(III) Has the Company established and implemented risk control and firewall mechanisms between related entities?	☑		The Company's business and financial transactions with related entities have been conducted in accordance with relevant regulations of the competent authority and risk control measures have been implemented.	No significant differences observed
(IV) Has the Company established internal regulations prohibiting insiders from trading securities based on undisclosed information?	☑		The Company has established an operational procedure for preventing insider trading, which all insiders must adhere to. It prohibits insiders from trading securities based on undisclosed information and conducts education and awareness campaigns (held on June 20, 2025 to prevent insider trading), strictly prohibiting insider trading. Additionally, on February 3, 2025, March 31, 2025, July 3, 2025 and October 1, 2025, internal communications via email were used to remind insiders of not to engage in transactions within 30 days prior to publication of the annual financial report and during the closed trading periods for stocks prior to publication of the quarterly financial report.	No significant differences observed
III. The composition and responsibilities of the Board of Directors
(I) Has the Board of Directors formulated a diversity policy, specific management goals, and implemented them effectively?	☑		The selection of directors in our Company is based on various criteria, including educational and professional backgrounds, shareholding, as well as values such as gender, age, nationality, and culture. Our goal is to have at least one female director and at least one director with a financial and accounting background. The Company's 7th Board of Directors is composed of seven members, including four independent directors. The board members possess expertise and skills in various fields, such as law, business management, leadership decision-making, industry knowledge, financial accounting, marketing, and strategic development. Currently, there are seven directors in office, three of whom are female, accounting for 43% of the total. The four independent directors make up 57% of the total, demonstrating the implementation of the board diversity concept and achievement of management objectives.	No significant differences observed

Assessment items	Operating conditions			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEs Listed Companies as well as the reasons for these differences
	Yes	No	Summary explanation
			The Company's director selection process considers fundamental criteria (including education, experience, and shareholding) as well as values (including gender, age, nationality, and culture), and professional knowledge and skills (such as business management, financial accounting, and legal matters), ensuring a diverse composition. (See attached table for information on the diversity of the Board of Directors)
(II) Has the Company voluntarily established other functional committees in addition to the legally required compensation and audit committees?	✓		The Company has established an Audit Committee and a Remuneration Committee. Additionally, on August 11, 2022, a Sustainability Development Committee was established, and on November 8, 2022, a Risk Management function was added, renamed as the Sustainability Development and Risk Management Committee. All these committees are composed of four independent directors. Other functional committees will be established based on the actual needs of the Company.	In the future, other functional committees will be voluntarily established based on demand.
(III) Has the Company established a method for evaluating the performance of the Board of Directors and its assessment procedures? Is there an annual and regular performance evaluation conducted, with the results reported to the Board of Directors and used as a reference for individual director compensation, nomination, and reappointment?	✓		The Company has established the 'Board of Directors Performance Evaluation Method' and has set up a Remuneration Committee to regularly assess the performance of directors and executives in achieving performance goals. It has also defined the content and amount of individual compensation for them. The performance evaluation result of the Board of Directors for fiscal year 2025 was "excellent," and it was reported to the Board of Directors on March 12, 2026.	No significant differences observed
(IV) Does the Company regularly assess the independence of the auditors?	✓		The Company conducts an annual review of auditor independence to ensure the reliability of its financial reports. The independence assessment for the fiscal year 2025 was approved by the Audit Committee and the Board of Directors on March 13, 2025. It included reference to Audit Quality Indicators (AQIs) covering professionalism, independence, quality control, supervision, and innovation, with 13 indicators across 5 dimensions assessing the independence, professionalism, and suitability of the auditors. The assessment confirmed that the auditors do not hold any shares in the Company and do not hold any positions within the Company. - Adopted evaluation procedures and standards: 1. Has the Company's chairman, president, or managers responsible for financial or accounting affairs served in any capacity at the current auditing firm or its affiliated enterprises within the past year? 2. Scale and reputation of the auditing firm. 3. Review the individual academic and professional background of the auditor to ensure there are no lawsuits or regulatory actions against them. 4. The auditor does not hold positions as directors, supervisors, managers, or in any significant influential roles in other companies, to avoid conflicts of interest. 5. The auditor has not served continuously for more than seven years, and if reappointed, there is at least a two-year interval. 6. Obtain an annual independent statement from the auditor. 7. Whether the auditor comply with the annual continuing education requirements. 8. Quality and timeliness of audit and tax services.	No significant differences observed
IV. Whether listed OTC companies have competent and appropriate numbers of corporate governance personnel, and designate corporate governance managers to be	✓		On May 11, 2023, our Company established the position of Corporate Governance Supervisor, as approved by the Board of Directors. The main responsibilities include handling matters related to meetings of the Board of Directors and shareholders' meetings in accordance with the law, preparing minutes of the	No significant differences observed

Assessment items	Operating conditions			Differences from the Corporate Governance Best Practice Principles for TWSE/TPEs Listed Companies as well as the reasons for these differences
	Yes	No	Summary explanation
responsible for corporate governance-related matters (including, but not limited to providing directors and supervisors with the information they need to perform their business, and assisting directors and supervisors in complying with laws and regulations, handling matters related to Board of Directors and shareholders' meetings in accordance with the law, preparing minutes of Board of Directors and shareholders' meetings, etc.)?			Board of Directors and shareholders' meetings, assisting directors in their appointments and ongoing education, providing necessary information for the directors' business operations, assisting directors in compliance with laws and regulations, reporting to the Board of Directors on the examination results of the eligibility of independent directors nominated, appointed, or serving during their term in relation to relevant laws and regulations, handling matters related to changes in directors, and other matters as stipulated in the Company's Articles of Incorporation or contracts. The execution status for the year 2025 is as follows:1. The Company held the annual general meeting on June 19, 2025 and convened six Board of Directors' meetings in 2025.2. New directors completed the 12-hour continuing education and re-elected directors completed the 6-hour continuing education in 2025.3. On March 13, 2025, the Board of Directors reviewed the independence and compliance report regarding the list of independent director candidates.
V. Has the Company established communication channels with stakeholders (including but not limited to shareholders, employees, customers, and suppliers), and set up a stakeholder section on the Company website to properly address important corporate social responsibility issues that concern stakeholders?	✓		Our Company's spokesperson serves as the main contact for communicating with stakeholders, and we have a dedicated section on our website for stakeholders and corporate social responsibility, making it convenient for stakeholders and the general public to access and read.In 2025, a total of seven investor conferences were held, five of which provided links to audio-visual information for related parties to view.	No significant differences observed
VI. Does the Company appoint a professional stock agency to handle shareholder meeting affairs?	✓		Our Company has appointed KGI Securities Co., Ltd. to handle shareholder meeting affairs.	No significant differences observed
VII. Information disclosure
(I) Does the Company have a website that discloses financial and business information as well as corporate governance information?	✓		Our Company has established both Chinese and English websites, regularly updating disclosures related to financial operations and corporate governance information.	No significant differences observed
(II) Does the Company adopt other methods of information disclosure, such as setting up an English website, assigning a dedicated person to collect and disclose Company information, implementing a spokesperson system, and placing the process of corporate briefings on the Company's website?	✓		Our Company has dedicated personnel responsible for collecting and disclosing Company information. We also have a spokesperson and deputy spokesperson, implementing a spokesperson system. Corporate briefing materials are placed on the Company's website, and we use the Public Information Disclosure System to submit reports. A designated person is responsible for disclosing various information and significant news.	No significant differences observed

Assessment items	Operating conditions	Differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies as well as the reasons for these differences
Yes	No	Summary explanation
(III) Does the Company announce and submit the annual financial report within two months after the end of the accounting year, and provide early announcements and submissions of the first, second, and third quarterly financial reports as well as operational results for each month within the specified deadline?		✓
VIII. Does the Company have other important information that is helpful in understanding the operation of corporate governance (including but not limited to employee rights, employee care, investor relations, supplier relations, rights of stakeholders, directors and supervisors' training status, risk management The implementation of policies and risk measurement standards, the implementation of customer policies, the Company's purchase of liability insurance for directors and supervisors, etc.)?	✓	The Company has established relevant personnel regulations and incentive systems, emphasizing employee rights. It actively supports the sound development of employee autonomous organizations and assists in organizing employee activities. Additionally, strict control systems are implemented for procurement, factory operations, and finances. Clear regulations are in place for supplier selection, business rotation, and the system of job proxies. Directors attend continuing education courses as required by laws and regulations (as per the attached table: Recent Year Director Continuing Education Status) and purchased directors' liability insurance on July 1, 2025.
The insured parties	The insurance Company	The insured amount (in New Taiwan Dollars)
All directors	Shinkong Insurance Co., Ltd.	87,849,000
IX. Please explain the improvement in response to the recent annual corporate governance evaluation results released by the Corporate Governance Center of Taiwan Stock Exchange Corporation, and propose priority strengthening items and measures for areas that have not yet improved: In the 11th corporate governance evaluation (evaluation year: 2024), the Company ranked in the top 6% to 20%. The Company will continue to seek greater improvements. Improvement Status: The communication between independent directors and internal audit supervisors and accountants is disclosed on the Company's website; interim financial reports are approved by the audit committee and submitted to the Board of Directors for discussion and resolution; education and training on preventing insider trading are promoted. Priority Strengthening Items and Measures: In accordance with legal requirements and the operational needs of the Company, we will continue to strengthen areas where governance evaluation indicators have not been met.

Table: Information on the diversity of the Board of Directors

Title	Name	Gender	Age	The tenure of independent directors	Management and operations	Leadership decision-making	Industry knowledge	Financial accounting	Marketing	Legal
Chairman	Liu, Tsu-Yin	Female	70~79	-	V	V	V	V	V
Director	Huang, Yah-Hsing	Male	70~79	-	V	V	V	V	V
Director	Ting, Ling-Chuan	Male	50~59	-	V	V	V	V	V
Independent Director	Chang, Shih-Chia	Male	60~69	3 to 6 years	V	V	V	V
Independent Director	Chen, Shiang-Ju	Female	50~59	3 to 6 years	V	V	V	V	V
Independent Director	Chen, Pei Chi	Female	40~49	Less than 3 years	V	V	V	V		V
Independent Director	Chen, Wan Jin	Male	60~69	Less than 3 years	V	V	V	V	V

Table: Directors' training status in recent years

Title	Name	Date of further education		Organizer	Course Title	Hours of further study	Total hours of further training for that year
		Start	End
Chairman	Liu, Tsu-Yin	2025/2/24	2025/2/24	The Greater Chinese Financial Development Association
Taiwan Listed Companies Association	Trump's New Tariff Policy and the Changing Global Economy	3	6
		2025/5/23	2025/5/23	The Greater Chinese Financial Development Association
Taiwan Listed Companies Association	New Trends in Circular Economy and Sustainable Management	3
Director	Huang, Yah-Hsing	2025/2/24	2025/2/24	The Greater Chinese Financial Development Association
Taiwan Listed Companies Association	Trump's New Tariff Policy and the Changing Global Economy	3	6
		2025/5/7	2025/5/7	Taiwan Institute of Directors	SAP NOW AI Tour Taiwan "Commercial AI · Outsmart the Future	3
Director	Ting, Ling-Chuan	2025/7/9	2025/7/9	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit Forum	6	9
		2025/7/25	2025/7/25	Securities and Futures Institute (SFI Taiwan)	2025 Insider Equity Trading Legal Compliance Presentation	3
Independent Director	Chang, Shih-Chia	2025/8/22	2025/8/22	The Chinese National Association of Industry and Commerce	2025 TS Financial Holding Net Zero Summit Forum	3	6
		2025/10/3	2025/10/3	Taiwan Investor Relations Association	New Approaches to Enterprise Transformation: Digital Technology and Sustainable Development	3
Independent Director	Chen, Shiang-Ju	2025/10/3	2025/10/3	Taiwan Investor Relations Association	New Approaches to Enterprise Transformation: Digital Technology and Sustainable Development	3	6
		2025/11/7	2025/11/7	Taiwan Investor Relations Association	Stakeholder engagement and management	3

Independent Director	Chen, Pei Chi	2025/7/9	2025/7/9	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit Forum	6	12
		2025/7/25	2025/7/25	Securities and Futures Institute (SFI Taiwan)	2025 Insider Equity Trading Legal Compliance Presentation	3
		2025/8/22	2025/8/22	The Chinese National Association of Industry and Commerce	2025 TS Financial Holding Net Zero Summit Forum	3
Independent Director	Chen, Wan Jin	2025/7/9	2025/7/9	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit Forum	6	6

(IV) If a Company has set up a Remuneration Committee or Nomination Committee, it should disclose its composition and operation

The Company has not yet established a Nomination Committee but has established the Remuneration Committee. The member professional qualifications and experience, annual focus areas and operating conditions of the Remuneration Committee are stated as follows:

Information on the Remuneration Committee Members:

April 11, 2026

Participant's Category	Conditions	Professional Qualifications and Experience	Independence Status	The number of Remuneration Committee memberships held in other publicly traded companies
	Name
Independent Director/Convenor	Chen, Shiang-Ju	The remuneration committee of our Company is comprised of four independent directors. For their professional qualifications, experience, and independence status, please refer to this year's annual report: Two. Corporate Governance Report/I. Information on the President, Vice Presidents, Assistant Vice Presidents, and Supervisors of Divisions and Branch Units/(I) Information on Directors and Supervisors/3. Disclosure of Director Professional Qualifications and Independent Director Independence.	0 Companies
Independent Director	Chang, Shih-Chia			1 Companies
Independent Director	Chen, Pei Chi			0 Companies
Independent Director	Chen, Wan Jin			2 Companies

Remuneration Committee Responsibilities:

According to Article 7 of our Company's "Remuneration Committee Charter," the responsibilities are as follows:

The committee shall exercise due care of a good administrator and faithfully fulfill the following duties, and submit the proposed recommendations to the Board of Directors for discussion.

(1) Regularly review this regulation and propose amendments as needed.
(2) Based on factors such as Company objectives, operational performance, and competitive environment, formulate policies, systems, standards, and structures for performance evaluation and remuneration of directors (including the chairman), general managers, and managers above the deputy general manager level, and regularly review them.
(3) Regularly evaluate the achievement of performance targets for directors, chairpersons, general managers, and managers above the deputy general manager level, and based on individual performance assessment results for directors and managers, determine the content and amount of individual remuneration. The annual report discloses the individual performance assessment results of directors and managers, as well as the content and amount of director remuneration, and the correlation and reasonableness with the performance assessment results.

When exercising the aforementioned duties, the committee should adhere to the following principles:

A. Ensure that the Company's remuneration arrangements comply with relevant laws and are sufficient to attract excellent talent.
B. The performance evaluation and remuneration of directors, chairpersons, general managers, and managers above the deputy general manager level should be based on

industry standards, considering individual performance assessment results, time commitment, responsibilities, achievement of personal goals, performance in other positions, compensation provided to individuals in similar positions in recent years, and evaluations of individual performance relative to the Company's short-term and long-term business goals, financial situation, and the rational connection between individual performance and Company operational performance and future risks.

C. Directors and managers should not be engaged in activities in pursuit of remuneration that exceed Company's risks.

D. The proportion of short-term performance-based remuneration for directors, chairpersons, general managers, and managers above the deputy general manager level, as well as the timing of variable compensation payments, should be determined based on industry characteristics and the nature of the Company's business.

E. Committee members shall not participate in discussions or voting related to the determination of their own personal remuneration.

F. The determination of the content and amount of remuneration for directors, chairpersons, general managers, and managers above the deputy general manager level should consider its reasonableness. The decision regarding their remuneration should not significantly deviate from financial performance. If there is a significant decline in profit or long-term losses, their remuneration should not exceed that of the previous year. If it does, a reasonable explanation should be disclosed in the annual report.

The term "remuneration" includes cash compensation, stock options, bonus shares, retirement benefits or severance pay, various allowances, and other substantial incentive measures. Its scope should be consistent with the guidelines for items to be disclosed in the annual reports of publicly traded companies regarding the remuneration of directors, chairpersons, general managers, and managers above the deputy general manager level.

For matters concerning the remuneration of directors, chairpersons, general managers, and managers above the deputy general manager level in subsidiary companies, if they fall under the responsibility of the subsidiary's hierarchy and require approval from the Board of Directors of the parent Company, they should first be recommended by the remuneration committee before being discussed by the Board of Directors.

The operational status of Remuneration Committee:

(1) The 4th Remuneration Committee of the Company comprises 4 members.

(2) Annual focus areas:

A. Performance evaluation and payment of remuneration: Review the distribution plans for managerial "performance bonuses" and "employee remuneration," and "remuneration for directors and employees" as stipulated in the Company's Articles of Incorporation.

B. Changes in managerial personnel and salary adjustments: It deliberates the transfer of position and salary adjustment, such as the promotion of managerial officers and appointment of new managerial officers.

C. ESG indicator linkage: Formulate the "Regulations Governing Linkage of Remuneration to Senior Management and Sustainability Performance" to ensure the reasonableness of the linking applicable managers' remuneration to sustainability (ESG-environmental, social, and corporate governance) performance.

D. Compliance with laws and governance requirements: Ensure that all remuneration

reviews comply with the "Remuneration Committee Charter" and related laws and regulations.

(3) The term of office for the current members: It commences from June 19, 2025 to June 18, 2028. The Remuneration Committee met five times during the fiscal year 2025, and the qualifications and attendance of the members are as follows:

Title	Name	Actual attendance frequency	Actual attendance rate (%)	Remarks
The convenor of the third Committee	Tsai, Rurng-Terng	2	100%	Expected attendance rate of 2 times Resigned on May 15, 2025
Committee member	Huang, Ming-Chan	2	100%	Expected attendance rate of 2 times Removed upon re-election on June 19, 2025
Convener of the 4th Committee	Chen, Shiang-Ju	4	80%	Expected attendance rate of 5 times Re-elected on June 19, 2025
Committee member	Chang, Shih-Chia	5	100%	Expected attendance rate of 5 times Re-elected on June 19, 2025
Committee member	Chen, Pei Chi	3	100%	Expected attendance rate of 3 times New independent director upon re-election on June 19, 2025
Committee member	Chen, Wan Jin	3	100%	Expected attendance rate of 3 times New independent director upon re-election on June 19, 2025

Other matters to be recorded:

If the Board of Directors does not adopt or amend the recommendations of the Remuneration Committee, it shall specify the date, session, agenda items, resolution results of the Board of Directors, and the Company's handling of the Remuneration Committee's opinions (for example, if the remuneration approved by the Board of Directors is better than the Remuneration Committee's recommendation, the differences and reasons should be explained): None.
The decisions of the Remuneration Committee, if any member dissents or expresses reservations with recorded or written statements, should specify the date, session, agenda items of the Remuneration Committee, all members' opinions, and the handling of these opinions: None.
The most recent annual salary and remuneration committee meeting resolutions and results and the Company's handling of members' opinions are as follows:

Session and Meeting Date	Agenda Content and Resolution Result
10th meeting of the 3rd Remuneration Committee
March 13, 2025	I. Proposal:
1. The Company's employee and director remuneration distribution proposal for fiscal year 2024.
2. The Company's issuance of performance bonus for managers in the second half of 2024.
3. The change in management for our Company.
II. Committee's opinion: No objections or reservations.
III. Resolution: Upon the chairman's consultation with attending members, the proposal was approved as presented.
IV. The Company handled the opinions of the Remuneration Committee as follows:
The proposal was approved by unanimous consent of all attending directors at the board meeting.
11th meeting of the 3rd Remuneration Committee
May 14, 2025	I. Proposal:
1. Amendments to the "Regulations Governing Bonus."
2. Amendments to the "Regulations Governing Total Compensation."
II. Committee's opinion: No objections or reservations.
III. Resolution: Upon the chairman's consultation with attending members, the proposal was approved as presented.
IV. The Company handled the opinions of the Remuneration Committee as follows:
The proposal was approved by unanimous consent of all attending directors at the board meeting.

	1st meeting of the 4th Remuneration Committee August 13, 2025	I. Proposal: 1. Addition of the Company's "Regulations Governing Linkage of Remuneration to Senior Management and Sustainability Performance." 2. Distribution of employee remuneration to managers for 2024. 3. The issuance of performance bonuses for managers in the first half of 2025. II. Committee's opinion: No objections or reservations. III. Resolution: Upon the chairman's consultation with attending members, the proposal was approved as presented. IV. The Company handled the opinions of the Remuneration Committee as follows: The proposal was approved by unanimous consent of all attending directors at the board meeting.
	2nd meeting of the 4th Remuneration Committee November 13, 2025	I. Proposal: 1. Proposal to issue the RSAs totaling 500,000 shares for 2025. 2. Clearly define the standards for identifying "entry-level employees" of the Company. 3. The change in management for our Company. II. Committee's opinion: No objections or reservations. III. Resolution: Upon the chairman's consultation with attending members, the proposal was approved as presented. IV. The Company handled the opinions of the Remuneration Committee as follows: The proposal was approved by unanimous consent of all attending directors at the board meeting.
	3rd meeting of the 4th Remuneration Committee December 23, 2025	I. Proposal: 1. Qualifications of the accounting officer to be appointed by the Company and review on remuneration. 2. Review on remuneration of the new General Manager of the factory premises. II. Committee's opinion: No objections or reservations. III. Resolution: Upon the chairman's consultation with attending members, the proposal was approved as presented. IV. The Company handled the opinions of the Remuneration Committee as follows: The proposal was approved by unanimous consent of all attending directors at the board meeting.

(V) Sustainable Development and Risk Management Committee and operational status

Sustainable Development and Risk Management Committee:

April 11, 2026

Participant's Category	Conditions Name	Professional Qualifications and Experience
Independent Director/Convenor	Chang, Shih-Chia	The Company's Sustainability and Risk Management Committee is comprised of four independent directors, who hold the expertise and capability in corporate sustainability. For their professional qualifications, experience, and independence status, please refer to this year's annual report: Two. Corporate Governance Report/I. Information on the President, Vice Presidents, Assistant Vice Presidents, and Supervisors of Divisions and Branch Units/(I) Information on Directors and Supervisors/3. Disclosure of Director Professional Qualifications and Independent Director Independence.
Independent Director	Chen, Shiang-Ju
Independent Director	Chen, Pei Chi
Independent Director	Chen, Wan Jin

Sustainable Development and Risk Management Committee Authorities:

According to the "Organization Regulations of the Sustainability and Risk Management Committee" of our Company, Article 6 specifies the scope of authorities as follows:

(1) To formulate, promote, and strengthen the Company's sustainable development and risk management policies and procedures, annual plans, strategies, and so on.
(2) To review, monitor, and revise the implementation status and effectiveness of sustainable development and risk management.
(3) To oversee sustainable information disclosure matters and review the sustainability report.
(4) To oversee other major matters related to sustainable development and risk management as resolved by the Board of Directors or required by regulatory authorities.

Functional groups under the Committee are responsible for carrying out relevant business, compiling implementation plans, and reporting implementation results to the Committee.

Sustainable Development and Risk Management Committee and operational status:

(1) On August 11, 2022, the Board of Directors resolved to establish the Sustainability Committee, and on November 8, 2022, it further resolved to integrate risk management functions, renaming it to the Sustainability and Risk Management Committee, with a total of 4 members. Functional groups are established under the Committee to ensure the promotion and implementation of sustainable development and risk management initiatives based on the needs of stakeholders. A sustainability planning unit, consisting of the CFO and project personnel, assists in the planning of sustainable development and risk management matters.
(2) The term of office for the current members: It commences from June 19, 2025 to June 18, 2028. The Sustainability and Risk Management Committee met three times during

the fiscal year 2025, and the qualifications and attendance of the members are as follows:

Title	Name	Actual attendance frequency	Proxy attendance frequency	Actual attendance rate (%)	Remarks
Convener	Chang, Shih-Chia	3	0	100%	Expected attendance rate of 3 times
Re-elected on June 19, 2025
Committee member	Huang, Ming-Chan	1	0	100%	Expected attendance rate of 1 time
Removed upon re-election on June 19, 2025
Committee member	Tsai, Rurng-Terng	1	0	100%	Expected attendance rate of 1 time
Resigned on May 15, 2025
Committee member	Chen, Shiang-Ju	3	0	100%	Expected attendance rate of 3 times
Re-elected on June 19, 2025
Committee member	Chen, Pei Chi	2	0	100%	Expected attendance rate of 2 times
New independent director upon re-election on June 19, 2025
Committee member	Chen, Wan Jin	2	0	100%	Expected attendance rate of 2 times
New independent director upon re-election on June 19, 2025

(3) The most recent annual sustainability and risk management committee meeting resolutions and results and the Company's handling of members' opinions are as follows:

Date	Session	Report Matters	Discussion Matters
May 14, 2025	8th meeting of the 1st Sustainability and Risk Management Committee	(1) Minutes of the Previous Meeting and Implementation Status.	Proposal 1 Amendment to the “Organizational Structure of Sustainability and Risk Management Committee” of the Company.
Proposal 2 Amendment to the “Charter of the Sustainability and Risk Management Committee” of the Company.
Proposal 3 Re-enactment of the Company’s “Risk Management Policies and Procedures”.
Proposal 4 Amendment to the Company’s “Regulations Governing the Preparation and Reporting of Sustainability Reports.”	All committee members present agreed and approved.	The Board of Directors approved the proposal.
August 13, 2025	1st meeting of the 2nd Sustainability and Risk Management Committee	(1) Minutes of the Previous Meeting and Implementation Status.	Proposal 1 The Company’s “2024 Sustainability Report.”
Proposal 2 Addition of the Company’s “Regulations Governing Linkage of Remuneration to Senior Management and Sustainability Performance.”	All committee members present agreed and approved.	The Board of Directors approved the proposal.
December 23, 2025	2nd meeting of the 2nd Sustainability and Risk Management Committee	(1) Minutes of the Previous Meeting and Implementation Status.
(II) The overall risk of Global Tek Group and TCFD climate-related financial disclosures in 2025.
(III) 2025 action plans and actual implementation status of various functional groups under the Sustainability and Risk Management Committee in 2025.	Proposal 1 Amendments to the “Sustainable Development Best Practice Principles” of the Company.	All committee members present agreed and approved.	The Board of Directors approved the proposal.

(VI) Implementation status of sustainable development and differences in sustainable development practices and guidelines between listed and OTC companies.

Promoted Projects	Execution Status			Differences in Sustainable Development Practices Guidelines and the Reasons
		Yes	No		Summary explanation
I.	Has the Company established a governance framework for promoting sustainable development, set up dedicated (part-time/full-time) positions for promoting sustainable development, authorized senior management by the board to handle it, and how is the board supervising this situation?	✓		(I) Global Tek has designated the “Sustainable Development and Risk Management Committee” as the promoting entity for the Group’s sustainable development, with an independent director as the chairman. Together with the Group’s CEO and several senior executives, they reviewed the Company’s core operational capabilities and formulated medium to long-term sustainability development plans.(II) The “Sustainability and Risk Management Committee” (hereinafter referred to as the “Committee”) initially directed the “Sustainable Development Promotion Committee” and “Risk Management Promotion Committee.” In order to flatten the organization and enhance communication efficiency and accelerate decision-making, the Board of Directors approved the amendments to the organizational structure on May 14, 2025, in order to establish the functional and risk group covering four key areas, including governance, social, environmental and supply chain management, which will report directly to the Committee.During 2025, the Committee convened a total of 3 meetings:The first meeting was held on May 14, 2025.The second meeting was held on August 13, 2025.The third meeting was held on December 23, 2025.The agenda items include:(1) Changes to the organizational structure of the Committee(2) Regulations Governing Linkage of Remuneration to Senior Management and Sustainability Performance(3) Final Draft of 2024 Sustainability Report(4) 2025 implementation status of various functional groups(5) 2025 Risk management and responses, and financial impact of TCFD climate-related risks(6) Amendments to the Sustainable Development Best Practice Principles of the CompanyVarious functional groups continue to formulate the strategies and short, medium, and long-term action plans based on the Company’s operational goals, combining the sustainability issues of concern to stakeholders, and report the achievement of goals.(III) The Committee reported on the execution outcomes and future work plans regarding sustainability to the Board of Directors on May 14, 2025, August 13, 2025 and December 23, 2025.(IV) The Company’s Board of Directors regularly receives various business reports from the management team, including business strategies and results, GHG inventory and sustainability-related presentation, and simultaneously assesses the feasibility of these strategies and sustainable development orientation, and monitors their progress. When necessary, the Board will urge the management team to make adjustments.	No significant differences observed
II.	The Company shall, in accordance with the principle of materiality, conduct risk assessments on environmental, social and corporate governance issues related to Company operations and formulate relevant risk management	✓		(I) This disclosure covers the Company’s sustainable performance at its main locations from January to December 2025. The risk assessment boundary primarily focuses on Global Tek as the listed entity. Subsidiaries such as Global Tek Co., Ltd., Global Tek (Wuxi) Co., Ltd., Global Tek (Xi'an) Co., Ltd., and Global Tek Metal Manufacturing (Shaanxi) Co., Ltd. are included based on their relevance to the core business operations and the extent of their impact on significant themes.(II) The Sustainable Development and Risk Management Committee conducts analysis based on the materiality principles outlined in the sustainability report. It engages with internal and external stakeholders through questionnaires and utilizes domestic and international research reports, literature, and integrated assessments from various departments and subsidiaries to evaluate significant sustainability issues.Based on this evaluation, the committee formulates effective risk management	No significant differences observed
				sustainability and environmental, and provides a comprehensive assessment of the impact of the risk on the company's strategic and strategic goals.

Promoted Projects	Execution Status					Differences in Sustainable Development Practices Guidelines and the Reasons
	Yes	No	Summary explanation
policies or strategies.			policies and implements specific action plans for identifying, measuring, evaluating, supervising, and controlling risks to mitigate their impact.(III) Based on the assessed risks, relevant risk management policies or strategies are formulated as follows:
			Aspect	Issue	Response strategies
			Legal Compliance	Sustainable Development Roadmap for TWSE/TPEx Listed Companies	With respect to the production locations (including those in different language regions) that have not yet been included in the inventory, the Company has gradually built their greenhouse gas inventory management and execution capabilities to enhance the overall organization's compliance and resilience in responding to regulatory requirements.
			Operations	Changes in customer requirements	1. Increase the frequency of communication with key customers and stay informed of changes in their needs in real time.2. A cross function team (CFT) is used to facilitate cross-departmental collaboration and enable a quick response to customer needs.3. Keep pace with trends and proactively deploy strategies, for example, preparing in advance for sustainable regulations and certification requirements (such as greenhouse gas emissions and supply chain transparency), and establishing diversified supply chain production bases.
			Finance	Effect of Exchange Rate Changes on Net Income	1. Short-term: Continuously monitor the Company's asset and liability positions and adjust them based on exchange rate fluctuations.2. Mid-term and long-term: Share the burden of exchange rate fluctuations together with customers/suppliers.
III. Environmental Issues
(I) Has the Company established an appropriate environmental management system in accordance with the characteristics of its industry?	✓		Global Tek Corporation, along with its primary production facilities, has established and implemented an environmental management system in accordance with the industry characteristics of the metal processing industry. Furthermore, Global Tek Corporation has been implementing greenhouse gas inventories in accordance with ISO 14064-1. For two consecutive years, 2023 and 2024, including significant subsidiaries, we have received unqualified opinions from the third-party verification body BSI (British Standards Institution), which have been publicly disclosed in the Sustainability Report and on the Company's website. Notwithstanding, as of the deadline in 2025, it was still pending verification by BSI. (https://www.globaltekww.com/corporate-social-responsibility/)			No significant differences observed
(II) Is the Company committed to improving energy efficiency and utilizing renewable materials that have a lower environmental impact?	✓		(—) Global Tek is proactively implementing various energy reduction measures, opting for equipment with high energy efficiency and energy-saving designs, such as:			No significant differences observed
			Year	Actions and results
			2023	Taiwan Factory:Improved its centralized control system for air compressors, resulting in an annual saving by 226,319.7 kWh of electricity, equivalent to a reduction of approximately 112 metric tons of CO2e per year.

Promoted Projects	Execution Status				Differences in Sustainable Development Practices Guidelines and the Reasons
	Yes	No	Summary explanation
			2024	Taiwan Factory: A centralized control system for chillers was implemented, saving approximately 397,115.9 kWh of energy, equivalent to a reduction of 196.2 metric tons of CO2e per year. Wuxi Factory: • Implemented an AI intelligent control system for smart management of air compressors, achieving an 8.2% reduction in air compressor electricity consumption compared to the previous year, saving 218,800 kWh (approximately 133.07 metric tons of CO2e). • With the expansion of the second phase of solar power generation, the total annual usage of solar green electricity reached 1,362,445 kWh, resulting in a cumulative reduction of 776.6 metric tons of CO2e per year.
			2025	Taiwan Factory: The chiller air handling unit was replaced with a box-type air handling unit and thereby helped saving 117,084 kWh of power per year, approximately 57.8 metric tons of Co2e per year. Wuxi Factory: • The AI intelligent control system for air compressors saved 2.6% of electricity compared to 2024 (although new equipment was sensitive to air pressure requirements and additional compressors were added, resulting in increased energy consumption). This resulted in savings of 98,600 kWh of power (approximately carbon emission reduction by 61.2 metric tons of CO2e). • I. With the expansion of the second phase of solar power generation, the total annual usage of solar green electricity reached 2,049,907 kWh, resulting in the reduction of 1,272 metric tons of CO2e. Xi'an Factory: A centralized hydraulic station with a variable frequency drive replaced the independent hydraulic stations of 8 milling machines, saving 107,827 kWh of power annually, the reduction of 66.9 metric tons of CO2e per year.
		(II)	Our Company utilizes raw materials that comply with the RoHS and REACH regulations of the European Union. We have established an integrated resource recycling system, which includes the reuse of high-quality, environmentally friendly materials. This approach is designed to minimize pollution during the manufacturing process and reduce our environmental impact. (III) In the realm of green manufacturing, efforts are being made to reduce unnecessary waste of resources and to develop technologies for waste reduction and reuse. Along the value chain, upstream and downstream parties are collaboratively working towards the recycling and reuse of packaging materials, with the aim of maximizing the benefits of a circular economy.
(III) Has the Company assessed the potential risks and opportunities of climate change for the current and future business, and taken relevant response measures?	✓		The Company has established the Committee as the highest governing body for climate change management. The Committee is chaired by an independent director, and has the unit in charge of the sustainability planning concurrently evaluate the existing and future potential risk and opportunity posed by the climate change on the Company, as well as responsive measures, and report the same to the Committee annually. The Committee reviews the Company's climate change strategies and objectives, manages actions related to climate change risks and opportunities, and assesses the implementation status and future plans, and reports the same to the Board of Directors. Our Company, in accordance with the TCFD recommendations announced by the Financial Stability Committee, evaluates the risks and opportunities presented by climate change to our business. This assessment is conducted and reviewed on an annual basis.		No significant differences observed

Execution Status
Yes	No	Summary explanation
	In 2025, Global Tek identified 1 major climate change risk issue from 23 potential topics: the Sustainable Development Roadmap for TWSE/TPEx Listed Companies, as Global Tek's important climate change risk issue. Meanwhile, it concluded 12 topics from various business locations' carbon emission inventories, as Global Tek's important climate change opportunities and issues. It is explained as follows:
	Types/aspects of risks	Issue	Response strategies
	Transformation risk/Policy and regulations	Sustainable Development Roadmap for TWSE/TPEx Listed Companies	With respect to the production locations (including those in different language regions) that have not yet been included in the inventory, the Company has gradually built their greenhouse gas inventory management and execution capabilities to enhance the overall organization's compliance and resilience in responding to regulatory requirements.

	Types of Opportunity	Climate change opportunity and issue	Response strategies
	Location in Taiwan
	Resource efficiency	Recycle and reuse	Production process cutting fluid recycling and reuse: Water is added to the cutting fluid during production, and recycling helps reduce both the cost of the cutting fluid and the water intake.
	Resource efficiency	Reduce water usage and consumption	The cleaning process establishes a pure water tank recycling and regeneration system, which not only helps reduce pure water consumption, wastewater discharge and water intake, but also saves wastewater disposal costs. (Xinwu Factory)
	Source of energy	Use of novel technologies	Establish ISO 50001 Energy Management System (Xinwu Factory)
	Source of energy	Use low-carbon energy	In 2025, 2.7% of renewable energy was consumed. The Company plans to increase it by 7.5% in 2026.
	Source of energy	Transition to decentralized energy - solar power supply	In 2025, 2.7% of renewable energy was consumed. The Company plans to increase it by 7.5% in 2026.
	Resilience	Energy substitution/diversification	In 2025, 2.7% of renewable energy was consumed. The Company plans to increase it by 7.5% in 2026.
	Resilience	Participation in renewable energy projects	The Factory rooftop is leased to some service supplier for installation of solar panels (Xinwu Factory).
	Locations in Mainland China
	Resource efficiency	Reduce water usage and consumption	Transformation of the purified water system drainage to boost processing output and conserve water resources (Xi'an)
	Source of energy	Use of novel technologies	Establish ISO 50001 Energy Management System (Wuxi Xi'an)

Promoted Projects	Execution Status	Differences in Sustainable Development Practices Guidelines and the Reasons
Yes	No	Summary explanation

Source of energy	Transition to decentralized energy - solar power supply	Expansion of solar panel power generation (self-generation and self-consumption) (Wuxi)In 2026, the Company plans to purchase 1 million kWh of green electricity certificates per quarter, totaling 4 million kWh annually (Wuxi).In 2025, the Company planned to purchase 50,000 degrees/month of green power certificates for wind power generation (Xi'an).
Resilience	Energy substitution/diversification	Expansion of solar panel power generation (self-generation and self-consumption) (Wuxi)In 2026, the Company plans to purchase 1 million kWh of green electricity certificates per quarter, totaling 4 million kWh annually (Wuxi).In 2025, the Company plans to purchase 50,000 kWh of green electricity certificates per quarter (Xi'an).
A detailed analysis of the risks and opportunities associated with climate change for Global Tek Corporation is anticipated to be disclosed in the 2025 Sustainability Report.
(IV) Has the Company compiled statistics on the total greenhouse gas emissions, water usage, and waste production over the past two years, and established policies for reducing greenhouse gas emissions, water consumption, or other waste management strategies?	✓
Year	Category 1	Category 2
2023	140.02	5,575.55
2024	131.60	5,367.84
2025	188.82	4,910.59
In 2025, the total greenhouse gas emissions from Category 1 and Category 2 sites within the specified range amounted to 5,099.41 tons of CO2e. The majority of these emissions, accounting for 75.58% of the total, primarily stemmed from the electricity usage under Category 2.Remark: The greenhouse gas emission figures for 2023 and 2024 have been verified by a third party without question. The figures for 2025 were still pending verification by a third party as of the deadline.(II) Global Tek Corporation has been focusing on water resource conservation and environmental protection for many years. In terms of water-saving initiatives, the Company starts by implementing comprehensive water conservation in daily

Promoted Projects	Execution Status					Differences in Sustainable Development Practices Guidelines and the Reasons
	Yes	No	Summary explanation
			operations, aiming to maximize the benefits of available water resources. In 2025, the Xi'an Factory recycled and reused wastewater discharged from the pure water production process, saving the water by 560 metric tons annually.The following are the results of water and electricity usage, as well as waste emissions, at Global Tek's Taiwan facility in the recent years:
			Year	Water Usage (tons)	Electricity Usage (kWh)	Waste Emission Volume (tons)
			2023	19,750	11,263,732	326.170
			2024	24,373	10,866,064	278.514
			2025	25,080	10,087,620	272.270
			Remark: The electricity consumption and waste emission figures for 2023 and 2024 have been verified by a third party without question. The figures for 2025 were still pending verification by a third party as of the deadline.(III) Global Tek Corporation is committed to environmental protection, establishing waste reduction KPIs, conducting annual performance reviews, and implementing internal and external audits. The Company and its main production bases operate in accordance with the ISO 14001 environmental management system. In order to achieve sustainable resource reuse, the principle of waste management at Global Tek prioritizes in-house reuse to reduce the use of raw materials. The next preference is for recycling. As a result, Taiwan Factory's waste mold recycling helped reduce the waste by 105 metric tons annually, with incineration or landfill being the last resort. In 2025, there was an effective reduction of 24.08% compared to the baseline year of 2022.The amount of waste cutting fluid disposed of at the Wuxi Factory in 2025 was 98 metric tons, a decrease by 73.86 metric tons compared to 171.86 metric tons in the previous year.
IV. Social Issues
(I) Does the Company formulate its management policies and procedures in accordance with relevant regulations and international human rights conventions?	✓		Human Rights and Employees Policy of Global Tek Fabrication Co., Ltd.Purpose and ScopeIn order to fulfill the Company's corporate social responsibility, protect the basic human rights of the Company's employees and stakeholders, respect, support and adhere to internationally recognized human rights norms and principles, including the Universal Declaration of Human Rights, the UN Global Compact, and the ILO Declaration on Fundamental Principles and Rights at Work, and also comply with the labor laws applicable in the place where the Company is operating, the Company establishes the Human Rights and Employees Policy of Global Tek aiming to communicate its commitment to global human rights. The Policy applies to all employees, subsidiaries, partners, suppliers and contractors of the Group, and is committed to preventing any infringement upon human rights.Human Rights CommitmentBased on the Company's business operations and characteristics, the Company focuses on the following seven major human rights issues:I. Providing a Fair Work Environment:No unfair or discriminatory treatment on the basis of personal gender, race, socioeconomic status, nationality, age, marital status, family status, language, religion, political affiliation, appearance, height, or physical or mental disability.II. Providing a Safe and Healthy Work Environment:The Company values employee safety and health by establishing an occupational safety and health management system and continuously improving the work environment and hygiene standards. The Company is committed to mitigating the risk over workplace accidents and protecting the physical and mental well-being of its employees.III. Respecting Human Rights in the Workplace:Comply with local labor laws and regulations, and avoid employing child labors or forced labors. Maintain open communication channels with employees and regularly			No significant differences observed

Promoted Projects	Execution Status
	Yes	No	Summary explanation
			hold labor-management meetings, striving to foster a harmonious workplace.
IV. Implementing Information Security for Personal Data Protection
Respect the privacy of all stakeholders, ensure the lawful collection and fair use of personal data, and establish a robust information security management mechanism to control data access and prevent data breaches.
V. Freedom of Employment and Freedom of Association
Employees perform all job duties voluntarily, and are free to resign or terminate their employment at any time. They are also free to join clubs and organizations without fear of any adverse consequences or retaliation from the Company.
VI. Employee Development:
Establish an effective career development training plan for employees, link operating results to employee compensation, and ensure the recruitment, retention, and motivation of talents to achieve sustainable business growth.
VII. Efficient Channels for Filing Complaints :
The Company provides the complaint mechanism and responds to complaints appropriately, ensuring that the procedures is fair and transparent. Meanwhile, in order to uphold gender equality in the workplace and provide a work environment free from sexual harassment for employees and job applicants, dedicated reporting mailboxes and an email address are available for sexual harassment prevention and complaints. The complaints will be handled confidentially during the investigation to protect complainants.

Human Rights Governance Framework
The Board of Directors serves as the Company’s highest-level human rights governance body. The “Sustainability and Risk Management Committee” has been established under the Board, and functional groups were also established under it, including the Social Care and Human Rights Risk Group. These groups are responsible for coordinating and promoting human rights management initiatives, and regularly report on their progress to the “Sustainability and Risk Management Committee” and the Board of Directors.

The Company performs the labor and human rights due diligence primarily based on the EU Corporate Sustainability Due Diligence Directive and the OECD Due Diligence Guidance for Responsible Business Conduct. The Company has established human rights due diligence procedures to identify and assess human rights-related risks, design risk management and mitigation measures, and implement improvements and follow-up monitoring to effectively mitigate the impact and consequences of human rights risks.

■ Scope of Investigation: The investigation will cover identification of stakeholders in operating activities and all of the Company employees and the first-tier suppliers.
■ The human rights due diligence is performed in the following steps:

Identification and assessment
• Identification of stakeholders in business operations.
• Assessment of relevant negative human rights issues
Termination and exemption
Taking risk mitigation and remediation measures against entities with high risks over negative human rights impacts.
Tracking
Tracking implementation status and benefits
Communication
Information Disclosure

In reference to international human rights standards and the human rights which are issues of concern by leading domestic and international peers, the Company has identified the following human rights issues:

■ For the employees, the Company identified the following 7 human rights issues in 2025:
1. Salary and working hours
2. Job discrimination
3. Child protection
4. Privacy
5. Health and safety | |

Execution Status					Differences in Sustainable Development Practices Guidelines and the Reasons
Yes	No	Summary explanation
		6. Freedom of speech7. Family life■ For the tier 1 suppliers, the Company has identified the following 11 human rights issues in 2025:1. Ratio of male and female employees, temporary staff, and foreign workers2. Recruitment risk assessment3. Written labor contracts and minimum wage4. Any anti-discrimination policy and procedure in place?5. Child protection6. Health and safety7. Termination of employment, freedom of association, and collective bargaining rights8. Operating in high-risk countries?9. Security personnel/guards employed?10. Any investigation/litigation involving infringement upon human rights?11. Any human rights policies, procedures for identifying human rights impacts, and complaint and remedial mechanisms in place?Based on said identified human rights issues, the Company distributed questionnaires to employees and Tier 1 suppliers for assessment. A risk matrix was then generated from the questionnaire results to identify the likelihood and severity of potential impacts. This matrix serves as the basis for prioritizing human rights issues, with those posing a high likelihood of occurrence and significant impact which shall be addressed as the first priority.Based on the risk matrix, a human rights assessment for employees indicates low risk across all issues. The Company will continue to monitor and improve its practices.For Tier 1 suppliers, the assessed high-risk human rights issues, in order of priority, are the lack of an anti-discrimination policy and procedure, the absence of a human rights policy, the lack of a process to identify human rights impacts, and the absence of a complaint and remedial mechanism.The following are the Company’s mitigation and remedial measures against said high-risk human rights issues.■ Mitigation and remedial measures:The Company will assess the risks over human rights issues of Tier 1 suppliers in 2025.After prioritizing them by the degree of impact posed by them, the Company will propose mitigation and remedial measures for high-risk human rights issues to mitigate human rights risks.
		Human Rights Subject of Concern	High Risk Issues	Remedy	Risk mitigation
		Supplier	No anti-discrimination policy and procedures are in place.	Provide laws and templates, and require suppliers to establish and implement the relevant system.	1. Have the suppliers undergo regular assessments incorporating various human rights system indicators, observe actual operations and verify legal compliance.2. Request improvement based on the supplier evaluation results, and terminate the
			No human rights policy has not been established.
			Absence of processes to identify human rights impacts.

Promoted Projects	Execution Status
	Yes	No	Summary explanation
				No complaint and remedial mechanism are in place.		relationship with the supplier, if necessary, and find alternative suppliers.
			For the follow-up on the due diligence, the Company checks the effectiveness of mitigation and remedial measures every year and reports the results to the "Sustainability and Risk Management Committee" and the Board of Directors. The due diligence results for 2025 were already reported and recorded on December 23, 2025. Meanwhile, the Company also established the complaint mechanism and channel available for employees, suppliers and other stakeholders to report any misconduct or infringement upon human rights.
			Scope of application		Mailbox/channel
			Employees and other stakeholders	Head of the affiliation	Email address or contact phone number of the head of the affiliation
				Global Tek Group	Tel.: 886-3-420-1398
Ext. No.: 3013 Chairman's Office
3006 Audit Department
3003 Human Resources Center
Email: [email protected]

(II) Does the Company establish and implement reasonable employee benefits measures (including salary, vacation, and other benefits), and appropriately reflect business performance or results in employee compensation?	✓		(I) Employee Remuneration
The remuneration provided by Global Tek consists of a fixed salary and variable compensation, such as year-end bonuses, production bonuses, or performance bonuses. These are distributed based on employee seniority, position, and work performance to incentivize employees. The employee compensation is calculated based on the stipulations in the Articles of Incorporation, and is determined as 1%~10% of the Company's annual profits.
Meanwhile, the Company will complete the amendments to the Articles of Incorporation per the competent authority's requirement in 2025, and will appropriate a certain percentage of the earnings each year as remuneration for the non-managerial entry-level employees whose monthly salary is lower than NT$63,000.
(II) Employee Welfare Measures
Global Tek places great importance on employee compensation and benefits, and has legally established a Worker's Welfare Committee in accordance with this commitment. In an effort to alleviate the financial burden on our colleagues, we not only absorb the cost of employee benefits that should be deducted from salaries, but also set an annual budget and plan for benefits. We aim to use these funds effectively and reasonably to provide various benefits for our colleagues. These include: regular on-site doctor consultations free of charge, periodic health check-ups, monthly birthday celebrations, distribution of birthday gifts/snacks/coffee and tea, employee outings/dinners, group insurance/business trip insurance, rewards for excellent/long-serving employees, and subsidies for weddings, funerals, celebrations, and childbirth.
(III) Workplace Diversity and Equality
All employees at Global Tek enjoy equal pay and equal opportunities for promotion. However, due to the nature of the industry, there are more male applicants than female. In 2025, female employees accounted for 38.6% of the whole employees, and 32.0% of senior management positions were held by women. The Company continues to strive for improvement in this area.
Global Tek Industrial Statistics				No significant differences observed

Execution Status
Yes	No	Summary explanation
			Male	Female	Subtotal
		Supervisors at or above the managerial position	34	16	50
		Other	205	134	339
		Total	239	150	389
		The Company is committed to providing a dignified and safe working environment for all employees. It proactively promotes diversity in hiring and ensure fairness in compensation and opportunities for advancement, guaranteeing that employees will not experience discrimination, harassment, or unequal treatment based on race, gender, sexual orientation, religion, age, political affiliation, place of birth, disability, or any other characteristic protected by applicable laws and regulations. In 2025, the Company employed three indigenous employees. The Company is used to respecting their cultural practices, and never commits violations of their rights to work or human rights.
		Employee Ethnicity Indicators
		Category	As a percentage of all employees	As a percentage of managerial positions
		The Republic of China national	70.7%	100%
		Foreign national	29.3%	0%
		Indigenous peoples	0.8%	0%
		Female diversity indicators
		Indicator			Percentage (%)
		Female employees as a percentage of all employees			38.6%
		Female employees as a percentage of all supervisory positions			29.4
		Female employees as a percentage of all junior managerial positions			22.2
		Female employees as a percentage of all senior managerial positions (CEO ≤ two job ranks below)			32.0
		Other diversity indicators
		Category			As a percentage of full-time employees (FTEs) (%)
		People with physical and mental disabilities			1.3%
		All employees	By age group: <30 years old	20.8%
			By age group: 30–50 years old	58.4%
			By age group: >50 years old	20.8%
			Total	100%
		(IV) Economic performance is reflected in employee remuneration. Global Tek Corporation has participated in a market compensation survey, adjusting salaries or distributing bonuses based on market wage levels, economic trends, and Company performance. The Company precisely reflects its operational performance in employee compensation. Taiwan Factory has adjusted the salary for employees by the percentage ranging from 3% to 4% averagely for three consecutive years to share profit with the employees, help them work without worries and maintain overall competitive compensation.
		(V) Employee Opinion Survey The Company values employee feedback. In addition to the complaint procedures and opinion mailbox, the Company also conducts the employee opinion survey annually. The HR Dept. conducted the "2025 Employee Opinion Survey" in January 2026 to understand

Promoted Projects	Execution Status	Differences in Sustainable Development Practices Guidelines and the Reasons
Yes	No	Summary explanation

Counterpart	All employees
Topic	Leadership, corporate sustainability, colleague relationship, environmental resources, career development, and salary & benefits.
Number of individuals under investigation	378 people
Coverage rate	66.1%
Responsible investigation unit	Human Resources Center
Survey Frequency	Once per year
Investigation period	January 1, 2025~December 31, 2025
Overall Satisfaction	4.62 out of 6 (0-6)
Investigation results	The overall employee satisfaction of the Company has increased by 1.67% from last year.
Enhanced improvement plan	Based on the survey results, the following content improvements and promotional projects were continued in 2026:■ The Company precisely reflects its operational performance in employee compensation. Taiwan Factory has adjusted the salary for employees by the percentage ranging from 3% to 4% averagely for three consecutive years to help them work without worries and maintain overall competitive compensation.■ To enhance employee benefits and satisfaction, the employee birthday gift money will be doubled starting in 2026.■ Care packages are distributed to pregnant employees to ease their discomfort during pregnancy and show the Company's care for their well-being. Meanwhile, the Company also offers the flexible working hour system for employees with childcare responsibilities, helping them balance work and family life.
(III) Does the Company provide a safe and healthy working environment for its employees, and does it regularly conduct safety and health education for them?	✓

Promoted Projects	Execution Status	Differences in Sustainable Development Practices Guidelines and the Reasons
Yes	No	Summary explanation

Accident	Injury Type	Number of injured individuals
1. Injured during a blade change on a machine at the production unit in Xinwu.	Cutting injuries	1 person
2. Youshi Factory worker on a motorcycle slipped and fell in the basement driveway.	Abrasions	1 person
3. Youshi Factory facility (warehousing) worker suffered falling from the material rack and injured.	Knee valve	1 person
4. Production - B(I): A piece of material fell during feeding, and the worker sustained hand cuts while attempting to catch it.	Cutting injuries	1 person
5. Production - RH Group suffered an accident where a worker sustained a laceration to his/her right thumb after being pinched by a machine fixture.	Lacerations	1 person
The rates are as follows: severity rate (SR): 48, frequency rate (FR): 3.71, and frequency-severity indicator (FSI): 0.42.※ The occupational safety and health management information platform shows that the average frequency-severity indicator (FSI) for the metal parts processing and manufacturing industry in the past three years is about 0.6 → the FSI of Taiwan Factory from 2023 to 2025 is lower than that of peers in the same industry.
Indicator Year	2023	2024
Frequency rate (FR)	4.27	2.45
Severity rate (SR)	10	2
Frequency-severity indicator (FSI)	0.21	0.07
※ The SR for 2025 was 48, more than the record: 2 in 2024, the number of occupational injuries remained the same. Notwithstanding, one employee experienced the lost time for 37 days cumulatively, resulting in the increase in the index for the year.(V) Comply with the requirements of Occupational Safety and Health regulations, and independently implement a management system in accordance with the provisions of CNS45001 (ISO45001).In 2025, the Company uploaded the supporting evidence to the Occupational Safety and Health Administration platform.(VI) In 2025, our Company reported zero incidents of fire, with no casualties or injuries, which equates to 0% of the total employee count. In response to potential fire hazards, we have established an emergency response plan and a dedicated response team. We conduct two fire drills annually (one in June and another in December 2025), and carry out monthly inspections and maintenance of the fire safety equipment within the premises. In 2025, all fire safety inspections and reports were completed satisfactorily with no deficiencies.(VII) The Company also values the health and well-being of the local community. Starting in 2024, the Xinwu Factory has sponsored and encouraged employee participation in the “Xinwu Fish and Rice Village Marathon” for two consecutive years, supporting this annual sporting event and promoting local prosperity and health. Each year, over 100 employees and their family members participate in the activity. Meanwhile, the Xinwu Factory has adopted Xinwu Touzhou Charm Park, providing cleaning services to ensure a clean and comfortable space for community residents

Promoted Projects	Execution Status				Differences in Sustainable Development Practices Guidelines and the Reasons
	Yes	No	Summary explanation
			to exercise and relax.
(IV) Has the Company established an effective career development training program for its employees?	✓		The Company is committed to building a learning organization that fosters cultural strategy succession. Through a comprehensive training system, from new hires to the leadership pipeline, the Company ensures the sustainable development of its operations and human capital. Meanwhile, through job descriptions, skills assessments, and knowledge competitions, employees are offered opportunities for career development, allowing them to maximize their strengths and potential, achieve personal professional growth, and ultimately enhance the Company’s value.I. Common training: A diverse and varied career training system.		No significant differences observed
			Name of the training program	Description
			Chang Gung-PwC Sustainability Academy Case Study Executive Program	■ Objective: Strategic innovation, leading transformation and decision making the future.■ Participant: Leadership pipeline■ Total course hours for 2025: 420 hours■ Cultivation direction: Through the selected cases and mentorship from renowned instructors, participants brainstorm to spark innovative business thinking, refine their decision-making skills, and become sharp corporate decision makers and executors.
			Executive Development Program CEO's Lecture	■ Objective: Guide leadership transformation, strategic planning, organizational synergy, pioneering leadership, culture building, and consensus building.■ Participant: Executives■ Total course hours for 2025: 588 hours■ Cultivation direction: Guided by the book entitled “Transformation and Re-growth” written by Professor Chi-Jen Li of National Taiwan University, the CEO personally teaches the less personally once per quarter, utilizing a C-SOP framework. The Group's senior executives are divided into groups and participate in pre-course assignments and post-course group discussions and reports to drive the Group’s transformation and re-growth initiatives.
			Mid-level and senior executive development program EMBA Academy	■ Objective: Enhance leadership, professional skills, marketing skills, cultural literacy, and psychological resilience.■ Participant: Mid-level and senior executives■ Total course hours for 2025: 1,224 hours■ Cultivation direction: Through monthly online learning program and quarterly tangible book club, the Company cultivate mid-level and senior executives by leveraging professional instructors’ experience sharing and knowledge transfer, fostering expertise in leadership management, coaching communication, team building, ESG and global perspectives.
			Orientation training	■ Objective: Facilitate the faster onboarding of new employees into the company culture and work environment, equipping them with the necessary

Promoted Projects	Execution Status
	Yes	No	Summary explanation
				skills to enhance work efficiency. ■ Participant: New employees ■ Total course hours of the new employees for 2025: 1,020 hours ■ Cultivation direction: Understand the Company's organizational structure, rules and regulations, and workflows, as well as safety procedures and awareness. This will help new employees clearly understand their roles, establish a collaborative team spirit, and ensure efficient communication and reporting in the workplace.
			II. Professional Training: Strategic talent development to cope with future challenges.
		Plan 1	Description
		Name of the Plan	ESG Training
		Description of the Plan	The Company encourages internal staff to participate in training and obtain certification. The training contents for 2025 are as follows: ■ Participated in the National Taipei University of Business Graduate Program for Industry Professionals' "ISO 14068 Carbon Neutrality Lead Auditor" course and obtained BSI ISO 14068-1 carbon neutrality lead auditor certification. A total of five individuals were trained for a total of 90 course hours. ■ The Group organized the "ISO 14067 Product Carbon Footprint Internal Auditor" course, covering standards, life cycle assessment, product category rules, product process mapping, and case study exercises. A total of 50 employees actively involved in product carbon footprint calculation were trained for 1,773 course hours cumulatively and receiving an ISO 14067 system verification statement from the British Standards Institution (BSI). ■ The Company organized the "ISO 50001 Energy Management System" course, covering the system standard requirements, interpretation of clauses, practical steps for establishment of systems, and internal audit highlights. A total of 16 employees participated in the 328-hour training and received an ISO 50001 Energy Management System certification statement from the British Standards Institution (BSI).
		Plan 2	Description
		Name of the Plan	AI Professional Skills Development
Description of the Plan	The Company is training AI talents across all departments through online training courses and hands-on workshops. These initiatives help employees become proficient in generative AI and AI Agent applications, enhancing productivity, business document creation and knowledge base utilization, ultimately driving the Company's AI development. A total of 243 individual were trained for a total of 843 training hours in 2025, as detailed below: ■ Productivity AI online courses:

Promoted Projects	Execution Status	Differences in Sustainable Development Practices Guidelines and the Reasons
Yes	No	Summary explanation

Plan 3	Description
Name of the Plan	ISO 27001 Information Security Management System
Description of the Plan	In order to establish a systematic information security management system, protect the organization's information assets, effectively mitigate the risk over data breaches caused by human error or hacking, and enhance customer trust and corporate brand image, the Company plans to train qualified professionals. ■ The program is intended for the 4 employees in the IT Department. By the end of 2025, the total hours of system training will reach 24 hours. ■ The plan is expected to pass verification by the certification company in June 2026.
Meanwhile, in order to support local education and increase students' practical work experience, the Company's Xinwu and Yangmei factories proactively engage in the industry-academia collaboration with neighboring universities and colleges, including joint research projects, internships, and campus visits. The collaborations for 2025 are as follows:

Promoted Projects	Execution Status	Differences in Sustainable Development Practices Guidelines and the Reasons
Yes	No	Summary explanation

Category	School	Number of individuals
Industry-academia collaboration	National Central University	13
Industry-academia collaboration	Internship for the senior students of Vanung University	1
Enrollment via the industry-academia collaboration	Industry-Academia Cooperation Program for Overseas Chinese Students, Vanung University	5
Total		19
Further, in response to the “Taoyuan City Local Industry Expo” co-organized by the Taoyuan Department of Education and the TSMC Charity Foundation, the Company built the access for local students and young people to learn about the industry and help them explore future career development. The event was organized in March 2025, attended by 6,000 teachers and students approximately.
(V) Does the Company adhere to relevant laws and international guidelines concerning issues such as customer health and safety, client privacy, marketing, and labeling of products and services? Has the Company established policies and complaint procedures to protect consumer or client rights?	✓
(VI) Does the Company have a supplier management policy in place that requires suppliers to adhere to relevant regulations on issues such as environmental protection, occupational safety and health, and labor rights? What is the status of its implementation?	✓

Promoted Projects	Execution Status			Differences in Sustainable Development Practices Guidelines and the Reasons
	Yes	No	Summary explanation
			headcount, and as direct or indirect suppliers based on transaction value. Differentiated in-depth questionnaires and audit requirements are then applied according to their scale and level of influence.(III) Annual audit and risk assessment:In 2025, the annual evaluation plan and questionnaire for the Taiwan Factory were executed. Five suppliers with high human rights risks were identified and added to the key tracking list.(IV) Improvement and counseling:Counseling requirements will be implemented for high-risk suppliers in 2026. They will be re-evaluated according to the evaluation schedule, and the cooperation relationship will be re-evaluated based on the evaluation results to determine whether to continue the cooperation.(V) Incentive mechanism:From 2025, ESG issues will be incorporated into the supply chain assessment on various factories of the Group, accounting for 10% of the total score, in order to strengthen the management team's focus and feedback on sustainability indicators.
V. Does the Company follow internationally accepted guidelines or directives for preparing sustainability reports and other disclosures of non-financial information? Has the aforementioned report received assurance or verification from a third-party entity?	✓		Global Tek prepares its sustainability reports in accordance with the GRI Standards, with reference to the Sustainability Accounting Standards Board (SASB) standards, the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, and the "Corporate Sustainability Best Practice Principles for TWSE/TPEx Listed Companies" issued by the Taiwan Stock Exchange and Taipei Exchange. Since 2023, it has issued three sustainability reports. Among the other things, in 2023 and 2024, it has received the independent assurance opinions from AFNOR (Association Française de Normalisation), a third-party verification unit. The 2024 Sustainability Report was submitted to the "TCSA Taiwan Corporate Sustainability Awards" and received the Bronze Award for Best Sustainability Report - Traditional Manufacturing Sector - Category II. In 2025, the Company further obtained assurance from Crowe (TW) CPAs and won the "TCSA Taiwan Corporate Sustainability Award" - Sustainability Report - Traditional Manufacturing Industry - Category 2 - Silver Award.	No significant differences observed
VI. If the Company has established its own sustainability guidelines in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies", please describe the differences between its operations and the established guidelines: None.
VII. Important Information to Understand the Progress of Sustainable Development Implementation: None.

(VII) Climate-Related Information of Listed Companies

Implementation Status of Climate-Related Information

Item	Execution Status
1. Detail the oversight and governance of climate-related risks and opportunities by the Board of Directors and management.	The Board of Directors of Global Tek serves as the Company’s highest governance body for risk management, responsible for ensuring the effective implementation of management direction and strategies related to environmental, social, and governance issues. The Board of Directors has established a “Sustainability and Risk Management Committee” responsible for reviewing and overseeing the Company’s strategies, preventative measures, and progress related to environmental and climate change issues. The Committee regularly assesses greenhouse gas inventory results and the progress of carbon reduction initiatives, submitting annual performance reports to the Board of Directors at the end of year to inform its decision-making and policy adjustments. The Board of Directors also regularly receives business reports from the management team, including operational reports, climate change risk and opportunity assessments, greenhouse gas inventory and reduction progress, and the annual results of the Sustainability and Risk Management Committee. The management team reports to the Board of Directors on the Company’s business strategies and climate-related management approaches, and the Board of Directors is responsible for guiding and overseeing the implementation of the overall risk management policy. When necessary, the Board of Directors will request the management team to adjust strategies or implement additional measures to ensure that the climate risk management mechanism operates effectively.
The Company’s Sustainability and Risk Management Committee is chaired by an independent director and consists of a sustainable planning unit and four functional groups. The sustainable planning unit assesses the Company’s climate change strategy and goals, reviews climate change risks and opportunities, monitors implementation, and discusses future plans. Each functional group has a designated supervisor and responsible unit to develop countermeasures and action plans based on the Company’s operating goals and sustainability issues of concern to stakeholders. These plans are implemented through the annual budget, and implementation results are tracked regularly. It reports to the Sustainability and Risk Management Committee regularly (at least once per year). The Sustainability and Risk Management Committee reports to the Board of Directors as appropriate.
2. Discuss how the identified climate risks and opportunities impact the business, strategy, and finances of the	Faced with the global trend of net zero and the third phase control target set by the Executive Yuan in the "Taiwan Carbon Reduction Action Plan" announced on January 23, 2025, aiming to reduce greenhouse gas emissions by 28% ± 2% compared to the base year, 2005, by 2030, and to achieve net

Item	Execution Status
Company in the short, medium, and long term.	zero emissions in 2050. The risk and opportunity issues related to climate change have become the important factors to be taken into consideration by corporate operations. Global Tek follows the carbon reduction roadmap published by the Executive Yuan, and in response to the international supply chain demands, it plans the carbon reduction strategies and establishes clear greenhouse gas reduction goals. Accordingly, the Company's business, strategy, and financial planning are as follows:
	Item	Factory premises	Category	Item	Schedule or completion time	Currency	Prepared budget or actual costs	Estimated useful life or service life
	1	Wuxi	Market	Installation of electric vehicle charging stations inside the factory.	December 2022	RMB	21,770	15
	2	Taiwan	Policies and laws & regulations	Purchase of variable frequency chiller (Youshi Factory)	June 2025	NTD	1,478,566	5
	3	Taiwan	Policies and laws & regulations	Establishment of a real-time SCADA energy management monitoring system at 2nd stage (Youshi Factory)	July 2025	NTD	1,650,000	5
	4	Taiwan	Policies and laws & regulations	Promotion of the use of recycled paper and double-sided printing.	July 2025	NTD	-	10
	5	Taiwan	Policies and laws & regulations	Improvement of air-conditioning return air systems to lower the temperature and save energy in the office (Youshi Factory)	September 2025	NTD	314,286	5
	6	Taiwan Wuxi Xi'an	Policies and laws & regulations	ISO 14064-1 Greenhouse Gas Inventory	April 2025	NTD	635,250	1
	7	Taiwan	Policies and laws & regulations	Air conditioners are equipped with inverter modules to reduce energy consumption and improve energy efficiency (Youshi Factory).	The installation is scheduled in 2026, with acceptance testing completed in October of the same year.	NTD	2,300,000	5
	Note: Based on the Ministry of Finance's announcement, the exchange rate shall be 1:4.3206 in September 2025.
	Item	Factory premises	Category	Item	Schedule or completion time	Currency	Prepared budget or actual costs	Estimated useful life or service life
	1	Taiwan	Resource efficiency	The production process cutting fluid is recycled and reused. Water is added to the cutting fluid during production and, therefore, the water intake is reduced.	March 2025	NTD	157,300	6
	2	Taiwan	Resource	Establish a pure water tank recycling and	January 2024	NTD	197,000	6

Item	Execution Status
		efficiency	regeneration system to reduce pure water consumption, wastewater discharge and water intake (Xinwu Factory).
	3	Xi'an	Resource efficiency	Transformation of the purified water system drainage to boost processing output and conserve water resources.	April 2025	RMB	104,100	5
	4	Wuxi	Source of energy	Expansion of solar panel power generation (self-generation and self-consumption)	September 2024	RMB	-	25
	5	Taiwan	Source of energy	ISO 50001 Energy Management System (Xinwu Factory)	November 2025	NTD	150,000	1
	6	Wuxi	Source of energy	ISO 50001 Energy Management System	December 2025	RMB	30,000	1
	7	Taiwan	Source of energy	Purchase 7.5% renewable energy in 2026.	July 2025	NTD	3,960,000	1
	8	Wuxi	Source of energy	In 2026, the Company plans to purchase 1 million kWh of green electricity certificates per quarter, totaling 4 million kWh annually.	December 2026	RMB	40,000	1
	9	Xi'an	Source of energy	Purchase 50,000 kWh of green electricity certificate for wind power generation per month.	December 2025	RMB	-	1
	10	Taiwan	Resilience	The Factory rooftop is leased to some service supplier for installation of solar panels (Xinwu Factory).	November 2022	NTD	-	20
	Note: According to the announcement of the Financial Department of Global Tek, the exchange rate shall be 1:4.3206 in September 2025.
3. Discuss the impact of extreme weather events and transition actions on financial matters.	The climate crisis brought about by global warming presents a significant challenge that is universally faced in the pursuit of global sustainable development. Climate-related risks and opportunities will have an impact on Global Tek's operational strategies and financial planning. Therefore, to address the risks associated with climate change, businesses need to allocate more resources towards handling extreme weather events, adjusting energy usage patterns, and enhancing employee skills. Simultaneously, it is necessary for businesses to annually review the economic useful life of their assets. Complying with regulations to transition towards more environmentally friendly assets may significantly shorten the current economic lifespan of fixed assets. This leads to an increase in operational costs, a decrease in asset value, and an increase in capital expenditure. The financial implications of high-level climate risks and opportunities are as follows:
	Types/aspects of risks	Climate change risk issue	Potential financial impact	Response strategies

Execution Status
Transformation risk/Policy and regulations	Sustainable Development Roadmap for TWSE/TPEx Listed Companies	-	With respect to the production locations (including those in different language regions) that have not yet been included in the inventory, the Company has gradually built their greenhouse gas inventory management and execution capabilities to enhance the overall organization's compliance and resilience in responding to regulatory requirements.
Types of Opportunity	Climate change opportunity and issue	Potential financial impact	Response strategies
Location in Taiwan
Resource efficiency	Recycle and reuse	+	Production process cutting fluid recycling and reuse: Water is added to the cutting fluid during production, and recycling helps reduce both the cost of the cutting fluid and the water intake.
Resource efficiency	Reduce water usage and consumption	+	The cleaning process establishes a pure water tank recycling and regeneration system, which not only helps reduce pure water consumption, wastewater discharge and water intake, but also saves wastewater disposal costs.
Source of energy	Use of novel technologies	-	Establish ISO 50001 Energy Management System.
Source of energy	Use low-carbon energy	-	In 2025, 2.7% of renewable energy was consumed. The Company plans to increase it by 7.5% in 2026.
Source of energy	Transition to decentralized energy - solar power supply	-	In 2025, 2.7% of renewable energy was consumed. The Company plans to increase it by 7.5% in 2026.
Resilience	Energy substitution/diversification	+	In 2025, 2.7% of renewable energy was consumed. The Company plans to increase it by 7.5% in 2026.
Resilience	Participation in renewable energy projects	-	The Factory rooftop is leased to some service supplier for installation of solar panels.

Execution Status
Locations in Mainland China
Resource efficiency	Reduce water usage and consumption	+	Transformation of the purified water system drainage to boost processing output and conserve water resources (Xi'an Factory)
Source of energy	Use of novel technologies	-	Establish ISO 50001 Energy Management System.
Source of energy	Use low-carbon energy	-	Expansion of solar panel power generation (self-generation and self-consumption) In 2026, the Company plans to purchase 1 million kWh of green electricity certificates for solar power generation per quarter, totaling 4 million kWh annually (Wuxi Factory). In 2025, the Company planned to purchase 50,000 degrees/month of green power certificates for wind power generation (Xi'an Factory).
Source of energy	Transition to decentralized energy - solar power supply	-	Expansion of solar panel power generation (self-generation and self-consumption) In 2026, the Company plans to purchase 1 million kWh of green electricity certificates for solar power generation per quarter, totaling 4 million kWh annually (Wuxi Factory). In 2025, the Company planned to purchase 50,000 degrees/month of green power certificates for wind power generation (Xi'an Factory).
Resilience	Energy substitution/diversification	-	Expansion of solar panel power generation (self-generation and self-consumption) In 2026, the Company plans to purchase 1 million kWh of green electricity certificates for solar power generation per quarter, totaling 4 million kWh annually (Wuxi Factory). In 2025, the Company purchased 50,000 kWh of green electricity certificates for wind power generation per month (Xi'an Factory).

Item

Execution Status

4. Describe how the identification, assessment, and management of climate risks are integrated into the overall risk management system.

Global Tek has established a systematic process for identifying and assessing climate-related risks and opportunities, in reference to the TCFD framework published by the Financial Stability Board. In November 2025, the sustainability planning unit and external consultants discussed and identified transition risks (policy and laws & regulations, technology, market, reputation) and physical risks (immediate, long-term) in accordance with the TCFD guidelines, while simultaneously assessing potential opportunities brought about by climate change. Quantification and ranking are prioritized based on "likelihood" and "level of impact." The evaluation results show that the VaR associated with the "Sustainable Development Roadmap for TWSE/TPEx Listed Companies" was the highest among the transformation risks. Regarding climate opportunities, the locations in Taiwan and mainland China identified seven and five opportunities, respectively, to inform subsequent energy management and carbon reduction strategy planning.

In terms of physical risk assessment, Global Tek conducts vulnerability analysis in accordance with the TCFD framework to assess the potential impact of extreme climate events, including typhoons, high temperatures, droughts, extreme rainfall and floods, on its main business locations. The evaluation results show that all identified risks are low for the time being. In the future, the Company will continue to monitor climate change trends, regularly identify areas with high vulnerability, and proactively plan countermeasures to enhance overall climate resilience.

For the climate-related risks and opportunities identified in 2025, the sustainability planning unit compiled and submitted them to the Sustainability and Risk Management Committee in December |

Item

Execution Status

2025 for review, and reported to the Board of Directors to ensure relevant assessment results and response strategies are supervised and guided by top management and incorporated into the Company’s governance and operational decision-making. At the operational level, the factory manager and related units continuously monitor the implementation and effectiveness of climate risk response measures through regular factory and business meetings, and adjust necessary actions based on changes in the operating environment.

Moreover, the Company has incorporated climate-related risks into its overall organizational risk management framework and oversees them through existing internal controls and audit mechanisms. The sustainable planning unit assists the Sustainability and Risk Management Committee in regularly collecting risk issues identified by its functional groups, and integrates the results of their risk analysis with corresponding response plans. The Sustainability and Risk Management Committee oversees and supervises the prevention mechanisms and progress of risks related to the environment and climate change, ensuring climate risk management processes are closely integrated with corporate operations and decisions, and continuously improving overall risk management quality through review and enhancement. The Board of Directors functions as the highest governance body for risk management within the Company, responsible for guiding and overseeing the implementation of risk management policies related to the environment and climate change, ensuring the effectiveness of management systems.

At the operational level, Global Tek relies on the factory personnel for daily equipment inspections and reporting of anomaly. The real-time monitoring of energy consumption and equipment operating status via the energy management system helps mitigate potential operational impacts from extreme weather or equipment malfunctions. |

Item	Execution Status
5. When using scenario analysis to assess resilience to climate change risks, it is important to provide a clear explanation of the scenario, parameters, assumptions, analysis factors, and significant financial impacts.	Global Tek cares the potential operational impacts and long-term risks of climate change, and integrates them into key issues for the Company's overall risk management. In order to enhance the ability to respond to climate change and improve operational resilience, the Company consulted external consultants to implement scenario analysis, assessing potential financial impacts under various climate scenarios. The assessment will serve as an important basis for developing climate risk management strategies and response measures.
	Scenario 1: Average sales growth
	Scenario Analysis 50,000 40,000 30,000 20,000 10,000 - 2022 2024 2025 2030 2035 2040 2045 2050 Carbon Emission (CO2e) Annual carbon emissions decrease by 2.8% each year. 2050 Net Zero Carbon emissions decrease by 5% each year as revenue grows.
	2022 2024 2025 2030 2035 2040 2045 2050
Revenue (NTD hundred million)	50 47 50 60 70 80 90 100
Carbon Emission (CO2e)	17,902 16,645 20,179 24,215 28,251 32,286 36,322 40,358
Carbon emissions decrease by 5% each year as revenue grows.	17,902 16,645 20,179 18,161 21,188 24,215 27,242 30,269
Annual carbon emissions decrease by 2.8% each year.	17,902 16,645 20,179 15,134 13,015 11,193 9,626 8,279
2050 Net Zero	17,902 16,645 20,179 14,529 9,008 6,005 3,003 -

Item

Execution Status

Scenario 2: Performance peaks and then stays stable.

	2022	2024	2025	2030	2035	2040	2045	2050
Revenue (NTD hundred million)	50	47	50	65	78	96	98	100
Carbon Emission (CO2e)	17,902	16,645	20,179	26,233	31,479	38,744	39,551	40,358
				-6,054	-5,247	-7,264	-807	-807
Carbon emissions decrease by 5% each year as revenue grows.	17,902	16,645	20,179	19,675	23,609	29,058	29,663	30,269
				504	-3,935	-5,448	-605	-605
Annual carbon emissions decrease by 2.8% each year.	17,902	16,645	20,179	15,134	13,015	11,193	9,626	8,279
				5,045	2,119	1,822	1,567	1,348
2050 Net Zero	17,902	16,645	20,179	14,529	9,008	6,005	3,003	-
				5,650	5,521	3,003	3,003	3,003

Item	Execution Status
	Scenario 3: First stabilize, then surge forward.
	Scenario Analysis
	50,000 40,000 30,000 20,000 10,000 - 2022 2024 2025 2030 2035 2040 2045 2050 Carbon Emission (CO2e) Annual carbon emissions decrease by 2.8% each year. 2050 Net Zero Carbon emissions decrease by 2% each year as revenue grows.
		2022	2024	2025	2030	2035	2040	2045	2050
	Revenue (NTD hundred million)	50	47	50	55	60	70	85	100
	Carbon Emission (CO2e)	17,902	16,645	20,179	22,197	24,215	28,251	34,304	40,358
					- 2,018	- 2,018	- 4,036	- 6,054	- 6,054
	Carbon emissions decrease by 2% each year as revenue grows.	17,902	16,645	20,179	16,648	18,161	21,188	25,728	30,269
					3,531	- 1,513	- 3,027	- 4,540	- 4,540
	Annual carbon emissions decrease by 2.8% each year.	17,902	16,645	20,179	15,134	13,015	11,193	9,626	8,279
					5,045	2,119	1,822	1,567	1,348
	2050 Net Zero	17,902	16,645	20,179	14,529	9,008	6,005	3,003	-
					5,650	5,521	3,003	3,003	3,003
Remark: Said data from 2025 to 2050 are all estimates.
6. If there is a transformation plan in place to address climate-related risks, please provide the details of the plan, including the indicators and objectives used to identify and manage both physical and transitional risks.	Global Tek follows the carbon reduction roadmap published by the Executive Yuan, “aiming to reduce greenhouse gas emissions by 28% ± 2% compared to the base year, 2005, by 2030, and to achieve net zero emissions in 2050,” and in response to international supply chain sustainability requirements, it establishes the phased carbon reduction strategies and clear greenhouse gas reduction goals. The Company uses "quantitative indicators" as a core tool for assessing climate-related risks and opportunities, thereby strengthening its resilience to climate risks and capitalizing on opportunities from the low-carbon transition. In the future, the Company will continue to follow its internal climate risk management process, and regularly review key performance indicators, evolving scenarios, and

Item

Execution Status

policy requirements. It will also promote carbon reduction and energy conservation initiatives to enhance overall operational efficiency and competitiveness. The specific details of our Company's transformation plan are as follows:

Climate-related risk

Item	Factory premises	Category	Item	Expected realized benefits
				Before improvement	After improvement
1	Taiwan Wuxi Xi'an	Policies and laws & regulations	ISO 14064-1 Greenhouse Gas Inventory	It is impossible to quantify carbon emissions.	Control carbon emissions and identify Category 2 electricity consumption as the current high-emission area for Global Tek, accounting for approximately 80% of total emissions.
2	Taiwan	Policies and laws & regulations	Purchase of variable frequency chiller	The inability to adjust operational capacity to match actual load leads to unnecessary energy waste.	After installing a variable frequency drive, the system can automatically adjust its operating frequency based on load variations, thereby reducing energy consumption during periods of partial load.
3	Taiwan	Policies and laws & regulations	Establishment of a real-time SCADA energy management monitoring system at 2nd stage.	Most electricity data are recorded manually and, therefore it is difficult to monitor energy usage in real time.	Real-time monitoring and statistics on energy consumption are available.
4	Taiwan	Policies and laws & regulations	Promotion of the use of recycled paper and double-sided printing.	Already implemented successively.	Continue to promote paper saving.
5	Taiwan	Policies and laws & regulations	Improvement of air-conditioning return air systems to lower the temperature and save energy in the office.	Directly intaking hot air outdoors resulted in the increase in the heat load of the freezer, thereby leading to higher overall energy consumption.	By improving air intake and mitigating the influence of temperature outside, the air conditioning system's efficiency will be improved, so as to save approximately 80~100 kilowatt-hours of electricity per day.
6	Taiwan	Policies and laws & regulations	Air conditioners are equipped with inverter modules to reduce energy consumption and improve energy efficiency.	The inability to adjust operational capacity to match actual load leads to unnecessary energy waste.	After installing a variable frequency drive, the system can automatically adjust its operating frequency based on load variations, thereby reducing energy consumption during periods of partial load.
7	Wuxi	Market	Installation of electric vehicle charging stations inside the factory.	No installation of electric vehicle charging stations inside the factory.	Facilitate emergency charging for customers and employees, and encourage the adoption of new energy vehicles.
Note: According to the announcement of the Financial Department of Global Tek, the exchange rate shall be 1:4.3206 in September 2025.

Climate-related opportunities

Item	Factory premises	Category	Item	Expected realized benefits
				Before improvement	After improvement
1	Taiwan	Resource efficiency	The production process cutting fluid is recycled and reused. Water is added to the cutting fluid during production and, therefore, the water intake is reduced.	The cutting fluid should be replenished with 85% water each time.	Recycling and filtering cutting water for reuse effectively reduces water intake and overall water consumption.
2	Taiwan	Resource efficiency	Establish a pure water tank recycling and regeneration system to reduce pure water consumption, wastewater discharge and water intake.	The pure water inside the tank in the cleaning process needs to be replaced weekly.	Through the installation of a pure water recycling and regeneration system, the pure water replacement cycle can be extended to once every two months, thereby reducing pure water consumption and overall water consumption.
3	Taiwan	Source of	ISO 50001 Energy Management	Energy consumption is not	Following the management system and pursuing energy

Item	Execution Status
			energy	System	managed systematically, and energy-saving initiatives lack clear direction and implementation priorities.	management through third-party certification requirements helps establish a robust management framework and effectively implement energy-saving initiatives.
	4	Taiwan	Source of energy	Purchase 7.5% renewable energy in 2026.	No renewable energy is used, and energy consumption is entirely dependent on traditional power sources.	Using renewable energy effectively improves the environmental benefits of energy use.
	5	Taiwan	Resilience	The Factory rooftop is leased to some service supplier for installation of solar panels.	The factory rooftop is unused and underutilized.	The electricity generated by utilization of rooftop space was wheeled via Taipower to enhance the overall grid resilience.
	6	Wuxi	Source of energy	Expansion of solar panel power generation (self-generation and self-consumption)	No green energy was used. The power came from the national grid in whole.	Using the roofs of the plant buildings and car sheds for installation of solar panels generates over 2 million kWh of electricity annually, thereby reducing carbon emissions by 1,241 metric tons of CO2e per year.
	7	Wuxi	Source of energy	ISO 50001 Energy Management System	Energy consumption is not managed systematically, and energy-saving initiatives lack clear direction and implementation priorities.	Following the management system and pursuing energy management through third-party certification requirements helps establish a robust management framework and effectively implement energy-saving initiatives.
	8	Wuxi	Source of energy	In 2026, the Company plans to purchase 1 million kWh of green electricity certificates per quarter, totaling 4 million kWh annually.	No purchase of green electricity certificates took place.	Meet customer requirements for use of renewable energy, thereby reducing CO2e emissions by 2,482 metric tons annually.
	9	Xi'an	Resource efficiency	Transformation of the purified water system drainage to boost processing output and conserve water resources.	Washing process pure water is not recycled, thereby leading to water waste.	The modification of the pure water system drainage saves 240 metric tons of water resources annually.
	10	Xi'an	Source of energy	Purchase 50,000 kWh of green electricity certificates for wind power generation per month.	No purchase of green electricity certificates took place.	Reduction of 372.3 metric tons of CO2e per year.
	11	Xi'an	Source of energy	ISO 50001 Energy Management System	Energy consumption is not managed systematically, and energy-saving initiatives lack clear direction and implementation priorities.	Following the management system and pursuing energy management through third-party certification requirements helps establish a robust management framework and effectively implement energy-saving initiatives.
	Note: According to the announcement of the Financial Department of Global Tek, the exchange rate shall be 1:4.3206 in September 2025.
7. If internal carbon pricing is to be used as a planning tool, the basis for price determination should be clearly explained.	Currently, while Global Tek has not yet established an internal carbon pricing mechanism, it will strive to gradually integrate carbon reduction achievements with operational performance indicators in the future, with the aim of accelerating its transition to a low-carbon operation and effectively achieving reduction targets.
8. When setting climate-related goals, it is important to provide a clear explanation of the activities that will be covered, the scope of greenhouse gas emissions, the planning schedule, and the annual progress. If carbon offsetting or renewable energy	The base year was set as 2022 initially. The Tongchuan Plant was added to the organizational greenhouse gas inventory in 2025. The base year was adjusted concurrently to reflect the change in organizational boundaries. The Company will continue to adhere to the ISO 14064-1 standard and the "Sustainable Development Roadmap for TWSE/TPEx Listed Companies" and "Alignment with IFRS Sustainability Disclosure Standards Roadmap (S2 climate-related disclosure)" published by the Financial Supervisory Commission in the subsequent years. Meanwhile, the Company will continue to promote the greenhouse gas inventory and third-party verification operations. The schedule for

Item	Execution Status
certificates (RECs) are utilized to achieve these goals, it is necessary to specify the source and quantity of carbon offset or the quantity of RECs.	implementation and the net-zero roadmap for our Company are as follows:
	Calendar year	2026	2027	2028	2029
	Receivable 2026-02-01 2026-02-02 2026-02-03 2026-02-04 2026-02-05 2026-02-06 2026-02-07 2026-02-08 2026-02-09 2026-02-10	Calculations within the correspondence delivered in the 2026-02-01 2026-02-02 2026-02-03 2026-02-04 2026-02-05 2026-02-06 2026-02-07 2026-02-08 2026-02-09 2026-02-10	Calculations within the correspondence delivered in the 2026-02-01 2026-02-02 2026-02-03 2026-02-04 2026-02-05 2026-02-06 2026-02-07 2026-02-08 2026-02-10	Receivable 2026-02-01 2026-02-02 2026-02-03 2026-02-04 2026-02-05 2026-02-06 2026-02-07 2026-02-08 2026-02-10
	Evaluate carbon reduction actions	Scope 1 and 2: Target 10% reduction	Scope 1 and 2: Cumulative 25% reduction	None toward net-zero target
	2022	2023	2025	2030
	Evaluate installation of self-built solar power facilities across all group sites	Increase installation of solar power facilities	Expand installation of solar power facilities	Continue to monitor market environment and regulatory trends
	Evaluate new sites for compliance with green building standards	Continue to promote the concept of green building standards	Evaluate green building standards	Continue to optimize green electricity trading and carbon trading strategies
	Key suppliers completed carbon management awareness programs	Expand climate management awareness across the value chain	Continue to guide key suppliers in carbon reduction
	Introduce carbon inventory management platform	Continue to optimize the carbon management platform	Establish targets for water use and waste reduction
		Evaluate procurement of renewable energy certificates and initial carbon credit transactions	Procure renewable energy certificates
	Establish an energy management system	Use low-carbon energy
	Evaluate targets for water use and waste reduction
9. The status of greenhouse gas inventory and assurance, along with reduction targets, strategies, and specific action plans (further detailed in sections 1-1 and 1-2).	Please refer to the details in the attached table below.

1-1 Recent Two-Year Company Greenhouse Gas Inventory and Verification Status

1-1-1 Greenhouse Gas Inventory Information

In order to effectively manage greenhouse gas emissions from each plant, Global Tek voluntarily established a greenhouse gas inventory mechanism in accordance with the ISO 14064-1 greenhouse gas inventory standard issued by the International Organization for Standardization (ISO) starting in 2022. Meanwhile, it conducts the greenhouse gas inventories and verification each year. In 2025, Global Tek Metal Manufacturing (Shaanxi) Co., Ltd. (hereinafter referred to as Tongchuan Factory) in Tongchuan City, Shaanxi Province, China, was added to the organizational greenhouse gas inventory, and the base year was revised in response to the adjustment of the organizational boundary. The scope of inventory covers the subsidiaries such as Global Tek Co., Ltd., Global Tek (Wuxi) Co., Ltd., Global Tek (Xi'an) Co., Ltd., and Global Tek Metal Manufacturing (Shaanxi) Co., Ltd..

The greenhouse gas inventory reports and inventory sheets from 2022 to 2024 for the Global Tek Group were both verified by the reputable British Standards Institution (BSI) through third-party verification. BSI issued unqualified opinions on both years' reports, confirming full compliance with relevant standards and the appropriate and accurate disclosure of greenhouse gas information.

For the 2025 greenhouse gas inventory, BSI is scheduled to conduct verification between March and April 2026. The verification scope will remain consistent with the aforementioned inventory scope. The application for the greenhouse gas verification statement is expected to be completed by May 2026. The following data were still pending verification by the third party before the deadline.

The greenhouse gas inventory data for the past two years have been consolidated based on the operational control approach, covering emissions from the Company and its aforementioned subsidiaries, as detailed below.

		2024		2025
		Emissions (Metric tons of CO2e)	Density (Metric tons of CO2e/NTD million)	Emissions (Metric tons of CO2e)	Density (Metric tons of CO2e/NTD million)
The Company	Category 1 Direct Greenhouse Gas Emissions	131.5966		188.8219
	Category 2 Indirect Greenhouse Gas Emissions from Imported Energy	5,367.8356		4,910.5869 (*4,781.5319)
	Categories 3 to 6 Other Indirect Greenhouse Gas Emissions	1,342.6640		1,397.4339
	Subtotal	6,842.0962		6,496.8427 (*6,367.7877)
All subsidiaries mentioned in the Consolidated Financial Report	Category 1 Direct Greenhouse Gas Emissions	277.5389		360.9142
	Category 2 Indirect Greenhouse Gas Emissions from Imported Energy	7,973.5514		11,080.1378 (*10,733.5178)
	Categories 3 to 6 Other Indirect Greenhouse Gas Emissions	1,551.8339		2,241.5936
	Subtotal	9,802.9242		13,682.6456 (*13,336.0256)
	Total	16,645.0204	3.8611	20,179.4883 (*19,703.8133)	4.4355 (*4.3242)

Note 1: Direct emissions (Category 1, i.e., direct emissions from sources owned or controlled by the Company),
Indirect GHG emissions from purchased energy (Category 2, i.e., indirect GHG emissions from imported electricity, heat or steam)
Other indirect emissions (Category 3–Category 6, which are discharged from the Company's activities, not indirect emission from energy but from any other sources owned or controlled by the Company).
Note 2: The scope of direct emissions and indirect emissions from energy shall be managed in accordance with the timeline stipulated in Article 10, Paragraph 2 of these Operating Procedures. Other indirect emissions information may be disclosed on a voluntary basis.
Note 3: Greenhouse Gas Inventory Standard: ISO 14064-1, which was published by the International Organization for Standardization (ISO).
Note 4: The intensity of greenhouse gas emissions can be calculated per unit of product/service or revenue. However, it is necessary to specify the data calculated based on revenue (in million New Taiwan Dollars) at the very least.
Note 5: The asterisk (*) indicates emission results calculated based on actual renewable energy usage, using a market benchmark approach.

1-1-2 Greenhouse Gas Assurance Information

The following is an overview of the assurance activities conducted over the past two years for the greenhouse gas inventories of the Company and certain subsidiaries included in the consolidated financial statements (including Global Tek Co., Ltd., Global Tek (Wu'xi) Co., Ltd., Global Tek (Xi'an) Co., Ltd. and Global Tek Metal Manufacturing (Shaanxi) Co., Ltd.). -

| Scope of assurance | | 2024 Emissions
(Metric tons of CO2e) | 2025 Emissions
(Metric tons of CO2e) |
| --- | --- | --- | --- |
| The Company | Category 1
Direct Greenhouse Gas Emissions | 131.5966 | 188.8219 |
| | Category 2
Indirect Greenhouse Gas Emissions from Imported Energy | 5,367.8356 | 4,910.5869
(4,781.5319) |
| | Categories 3 to 6
Other Indirect Greenhouse Gas Emissions | 1,342.6640 | 1,397.4339 |
| | Total | 6,842.0962 | 6,496.8427
(6,367.7877) |
| | Accounting for a percentage of the previously mentioned inventory data in 1-1-1 | 100.00% | 100.00% |
| All subsidiaries mentioned in the Consolidated Financial Report | Category 1
Direct Greenhouse Gas Emissions | 277.5389 | 360.9142 |
| | Category 2
Indirect Greenhouse Gas Emissions from Imported Energy | 7,973.5514 | 11,080.1378
(10,733.5178) |
| | Categories 3 to 6
Other Indirect Greenhouse Gas Emissions | 1,551.8339 | 2,241.5936 |
| | Total | 9,802.9242 | 13,682.6456
(13,336.0256) |
| | Accounting for a percentage of the previously mentioned inventory data in 1-1-1 | 100.00% | 100.00% |
| Assurance Institute | | BSI Assurance Institute | BSI Assurance Institute |
| Description of Assurance | | ISO 14064-3:2019
Category 1 2 Reasonable Assurance
Categories 3 to 6 Verification and Agreed-Upon Procedures | ISO 14064-3:2019
Category 1 2 Reasonable Assurance
Categories 3 to 6 Verification and Agreed-Upon Procedures |
| Assurance Opinion / Conclusion | | Unqualified Opinion | Unqualified Opinion |

1-2 Greenhouse Gas Reduction Goals, Strategies, and Specific Action Plans

Base year of greenhouse gas reduction and reduction goals

To proactively plan greenhouse gas reduction strategies, the Company has initially established 2022 as the base year, with its Scope 1 and Scope 2 emissions being 444.7111 metric tons of CO2e and 14,577.4559 metric tons of CO2e, respectively. The Company aims to further implement a 10% reduction in emissions by 2025, and an additional 15% reduction by 2030, achieving a cumulative carbon reduction target of 25%.

The Category 1 and Category 2 emissions in 2025 calculated based on the original inventory scope were 468.6446 metric tons of CO₂e and 15,051.4989 metric tons of CO₂e, respectively. These figures represent the failure to achieve the reduction from the original base year, primarily due to expanded production capacity and investment in new product areas, thereby leading to higher energy consumption. Said results are intended for historical performance disclosure purposes only. Due to the inclusion of Global Tek Metal Manufacturing (Shaanxi) Co., Ltd. in the inventory scope, the Company will reset the base year as 2025, re-evaluate the reduction goals, and tentatively set Category 1 and Category 2 greenhouse gas emissions in 2030 to be 15% lower than the reset base year, maintaining the overall carbon reduction goal of 25%. For the subsequent reduction performance, the new scope of inventory (covering the subsidiaries such as Global Tek Co., Ltd., Global Tek (Wuxi) Co., Ltd., Global Tek (Xi'an) Co., Ltd., and Global Tek Metal Manufacturing (Shaanxi) Co., Ltd.) will serve as the comparison basis.

Greenhouse Gas Reduction Strategies, and Specific Action Plans

In 2025, Global Tek will continue to deepen its energy-saving and carbon-reduction efforts:

Establishment of the ISO 50001 energy management system: ISO 50001 energy management systems have been simultaneously implemented at the Taiwan Xinwu Factory, Wuxi Factory and Xi’an Factory, all of which have passed third-party certification to enhance data-driven energy management and energy efficiency.
Use of renewable energy: Expand solar power generation facilities on the factory's roof and in the parking lot, and purchase green electricity certificates to increase the percentage of renewable energy consumption.
Recycling and reuse: Process improvements have enabled modifications to the pure water system drainage, implementation of cutting water recycling, and installation of a pure water tank regeneration system, thereby resulting in reduced water intake and wastewater discharge.
Replacement of high-energy-consuming equipment: Continue to adopt variable frequency air conditioners, variable frequency chiller units, and improve air conditioning return systems to lower overall energy consumption.
Establishment of the incentive mechanism: In order to motivate senior managers to focus on sustainability performance, the "Regulations Governing Linkage of Remuneration to Senior Management and Sustainability Performance" have been established. The Sustainability and Risk Management Committee will review the performance of each functional group’s sustainability goals and submit its findings to the Remuneration Committee for approval, and then to the Board of Directors for ratification before incentives are disbursed. Additionally, individual incentive bonuses are awarded based on outstanding ESG performance.
Education and promotion: The ESG column in the internal monthly e-news has been published for a total of 48 issues as of 2025. This aims to embed a sustainable corporate culture within the colleagues and foster collective efforts towards achieving the Company's net-zero emission goals.

Reduction Target Achievement Status

As of the current date, the annual emissions data and target achievement status are as follows:

Remark: The 2025 data are still pending verification by the third party as of the deadline.

(VIII) Implementation Status of Ethical Corporate Management and Differences, along with Reasons for these Differences, from the Ethical Corporate Management Best Practice Principles for Listed Companies.

Evaluation Item	Operating conditions	Differences and Reasons Pertaining to the Ethical Corporate Management Best Practice Principles of Listed Companies
Yes	No	Summary explanation
I. Establishment of Integrity Management Policy and Plan
(I) Has the Company established a policy of ethical business practices that has been approved by the Board of Directors, and is this policy clearly stated in its regulations and external documents? Is there a commitment from the Board of Directors and senior management to actively implement these business policies?	✓
(II) Does the Company establish a mechanism to assess the risk of dishonest behavior, regularly analyze and evaluate business activities with a higher risk of dishonest behavior within the scope of operations, and formulate preventive measures based on such analysis? Does it also include preventive measures for the behaviors specified in Article 7, Section 2 of the Code of Conduct for Integrity in the Operation of Listed and OTC Companies?	✓
(III) Does the Company clearly define operational procedures, behavioral guidelines, penalties for violations, and an appeal system within its anti-dishonesty measures? Furthermore, does it effectively implement and periodically review and revise these measures?	✓
Factory Code	Number of employees	Passed the test Number of individuals
Taiwan	408	403
Note: The test can be taken unlimited times until a score of 100 is achieved.
II. Implementing Honest Business Practices

Evaluation Item	Operating conditions			Differences and Reasons Pertaining to the Ethical Corporate Management Best Practice Principles of Listed Companies
	Yes	No	Summary explanation
(I) Has the Company assessed the integrity records of its business partners and incorporated provisions for ethical conduct into the contracts signed with them?	☑		According to the provisions of the Code of Conduct, Global Tek Company must promptly terminate business dealings with any business partners or collaborators found to engage in dishonest behavior and classify them as non-cooperative entities. This is to uphold the Company's commitment to integrity in its business operations.	No significant differences observed
(II) Does the Company have a dedicated unit under the Board of Directors to promote business integrity? Do they regularly report their integrity management policy, measures to prevent dishonest behavior, and the implementation and supervision to the Board of Directors at least once a year?	☑		The management unit formulates the 'Ethical Corporate Management Best Practice Principles' and the 'Ethical Management and Guidelines for Conduct'. Any amendments or abolition of these documents must be approved by the Board of Directors. The Board of Directors of our Company fulfills its duty of care and supervises the Company to prevent dishonest behavior, ensuring the implementation of our integrity policy. The most recent report date: November 13, 2025
The execution status of operating with integrity in 2025 is as follows:
1. Statement of Signing:
(1) The newly appointed internal manager has signed the 'Declaration of Integrity in Business Operations Policy'.
(2) New employees are required to sign the 'Confirmation of Management Regulations Review' in order to incorporate the Code of Conduct and Behavioral Guidelines mentioned above into the management regulations.
2. Education and Training:
The Human Resources Center is responsible for education, training, and promotion. In 2025 local employees participated in physical training courses on integrity management, anti-corruption, ethical behavior, human rights, employee policies, and reporting illegal, unethical, or dishonest behavior. On the other hand, foreign employees received education through translated materials in their native languages, totaling 1,120 hours.
3. Compliance Promotion:
On July 8, 2025, the Company’s governance supervisor discussed the topic of preventing insider trading. The meeting covered important regulations for handling internal confidential information. Various levels of management, especially internal executives, were informed about the matters they should pay attention to through videos and case studies.
4. Annual Test:
In 2025, local employees underwent an online training system assessment, while foreign employees participated in an	No significant differences observed

Evaluation Item	Operating conditions			Differences and Reasons Pertaining to the Ethical Corporate Management Best Practice Principles of Listed Companies
	Yes	No	Summary explanation
			educational exam organized by Google. The exams encompassed the aforementioned training areas.5. Regular Check:The Company conducts annual evaluations and implementations of internal controls to achieve effective management and implementation. The internal audit unit conducts independent audits to ensure the overall operation of the mechanism, jointly managing and preventing the occurrence of dishonest behavior. In 2025, there were no incidents of corruption or violations of insider trading.6. Whistleblower System and Whistleblower Protection:The Company has implemented specific 'Procedures for Reporting Illegal, Unethical, or Dishonest Behavior' to encourage both internal and external personnel to report any instances of dishonest or inappropriate behavior. The Chairman's Office, Audit Department, and Human Resources Center have been assigned as the designated units to receive these reports. Whistleblowers have the option to make reports through four different channels: email, a dedicated hotline, letter, or in-person reporting. The Company's website also includes a comprehensive corporate governance section that outlines detailed procedures for both internal and external stakeholders. The identity and content of the whistleblower will be kept confidential to ensure that they are not subjected to any improper treatment as a result of the report.There was no reported or filed complaint regarding employee violations of ethical integrity or infringement upon labor human rights in 2025.
(III) Does the Company have a policy in place to prevent conflicts of interest, provide appropriate disclosure channels, and ensure its implementation?	✓		The Company has implemented a policy to prevent conflicts of interest in its regulations. Any violations can be reported to the Audit Committee, Internal Audit Manager, and executives.The Company has established the "Procedure for Reporting Illegal, Unethical, or Dishonest Behavior," which provides an appropriate channel for reporting such incidents. This procedure is rigorously enforced. No complaint or whistleblowing has been received in 2025.	No significant differences observed
(IV) Has the Company established effective accounting and internal control systems to implement honest business practices? Does the internal audit unit formulate related audit plans based on the assessment results of dishonest behavior risks, and check the			The Company has implemented efficient accounting and internal control systems. The internal audit unit establishes internal audit plans based on the results of risk assessments and carries out various audit operations in accordance with these plans. In case of special	No significant differences observed
and internal control systems, the Company is responsible for the management of the incident.			information and information about the incident. The Company is responsible for the management of the incident.
(V) Has the Company established a policy to prevent and control the incident? Does the Company have a policy in place to prevent and control the incident? Are there any changes to the policy or the policy?	✓		The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the incident. The Company has established the policy to prevent and control the	No significant differences observed

Evaluation Item	Operating conditions			Differences and Reasons Pertaining to the Ethical Corporate Management Best Practice Principles of Listed Companies
	Yes	No	Summary explanation
compliance of the dishonest behavior prevention plan accordingly? Or does it delegate the auditing task to an accountant?			circumstances, separate project audits will be arranged.
Audit Report for the Year 2025, Reference No.: 11440.
(V) Does the Company regularly provide education and training on integrity management for both internal and external stakeholders?	☑		Our Company promotes the principles of integrity in business operations and emphasizes their implementation by employees in various meetings and daily business activities.
The training situation: see 1, (3)	No significant differences observed
III. Operation of the Company's Whistleblowing System
(I) Has the Company established specific reporting and reward systems, as well as convenient reporting channels, and assigned appropriate personnel responsible for handling the reported targets?	☑		In order to implement ethical management, ensure the Company’s sustainable development, and protect the rights of whistleblowers, the Company has established “Procedure for Reporting Illegal, Unethical, or Dishonest Behavior.” The reporting channels such as a hotline, email address and mailing address are disclosed on the Company's website, and personnel responsible for receiving and responding to reports are designated too.
The reporting channels are as follows:
Whistle-blowing mail:
[email protected]
Whistle-blowing hotline: 886-3-420-1398
Ext. No.: 3013 Chairman's Office
3006 Audit Department
3003 Human Resources Center
Address for reporting by letter or in person:
Headquarters in Taipei: Building C., 15F, No. 94, Sec. 1, Xintai 5th Rd., Xizhi Dist., New Taipei City 221
Taiwan Factory: No.638, Sec. 6, Kuaisu Rd., Xinwu Dist., Taoyuan City 327	No significant differences observed
(II) Does the Company have established standard operating procedures for handling reported matters, procedures to be followed after completing an investigation, and relevant confidentiality mechanisms?	☑		The Company has stipulated in the “Procedure for Reporting Illegal, Unethical, or Dishonest Behavior” the prerequisites for whistleblowing, circumstances resulting in rejection of the cases, procedures, maintenance of cases and protection of whistleblowers, and incentives. All related documents and information are considered confidential. All personnel involved in the process are fully responsible for maintaining the confidentiality of the proceedings.
Except for whistleblowing cases that do not meet the conditions for investigation, the receiving unit will complete the necessary investigation procedures and then issue an investigation report based on the verified facts, submitting it to the Chairman. If a reported case involves a director or senior executive, or if a material violation is discovered or the Company is likely to suffer material damages, it must be reported to the independent directors in writing.	No significant differences observed
(III) Has the Company implemented measures to protect whistleblowers from improper	☑		The Company has established “Procedure for Reporting Illegal, Unethical, or Dishonest	No significant differences

Evaluation Item	Operating conditions			Differences and Reasons Pertaining to the Ethical Corporate Management Best Practice Principles of Listed Companies
	Yes	No	Summary explanation
treatment as a result of their disclosures?			Behavior,” which apply to all employees of its subsidiaries, as well as relevant external units and personnel. The Procedure governs the protection and rewards for whistleblowers, prevent whistleblowers from suffering loss of personal profit and discriminative treatment about their employment terms, such as promotions, as a result of reporting. Furthermore, whistleblowers will be rewarded if their reports contribute to the Company and generate economic benefits. No complaints were received in 2025 (one complaint regarding underestimation of overtime pay for a foreign employee was received in 2024 and was closed in February 2025 following a review by the competent authority).	observed
IV. Enhance Information Disclosure
(I) Has the Company disclosed the content and effectiveness of its Code of Conduct on its website and the Market Observation Post System?	✓		The Company has a website for disclosing Company-related information and announces it on the Market Observation Post System in compliance with regulations.	No significant differences observed
V. If the Company has established its own code of 'ethical conduct' in accordance with the "Ethical Corporate Management Best Practice Principles", please describe any differences between its operation and the established code: No significant differences.
VI. Important information that aids in understanding the Company's operation with integrity: None.

(IX) Other important information that can enhance understanding of the Company's governance operations may also be disclosed:

The Company has established an internal control system in accordance with the "Regulations Governing Establishment of Internal Control Systems by Public Companies." This system has been communicated to all employees, managers, and directors to prevent any violations of the regulations.
Implementation status of the Company's intellectual property management plan and its alignment with business objectives:

(1) The Company has a long-standing presence in diverse fields such as automotive, aerospace, and industrial applications. It is dedicated to monitoring developments in various niche markets to bolster its competitive edge and technological advancements. To this end, it has established the "Procedures for the Acquisition, Maintenance and Utilization of Intellectual Property," which manages intellectual property rights including patents, trademarks, copyrights, and trade secrets. This is integrated with its business objectives and R&D resources through a comprehensive intellectual property strategy, enabling it to anticipate trends, so as to proactively plan, secure a leading position and enhance operational performance.
(2) Important documents of the Company related to intellectual property rights are managed according to the "Document Management Procedure" and "Record Management Procedure" for intellectual property cases. The status of registered or acquired patents, trademarks, copyrights, and trade secrets is disclosed on the Company's website, and the implementation status was reported to the Board of Directors on August 13, 2025.

(X) Execution Status of Internal Control System

Internal control system statement: Please refer to the MOPS website > Single Company > Corporate Governance > Corporate Regulations/Internal Control>Internal Control System Statement Announcement at https://mops.twse.com.tw/mops/#/web/t06sg20.
If an accountant is engaged to conduct an audit of the internal control system, the accountant's report on the audit should be disclosed: Please refer to the MOPS website > Single Company > Corporate Governance > Corporate Regulations/Internal Control > Internal Control Project Review Report: https://mops.twse.com.tw/mops/#/web/t06hsg20.

(XI) Important Resolutions of Shareholders' Meeting and Board of Directors in the Recent Fiscal Year and up to the Date of Printing of the Annual Report

Shareholders' Meeting

Date	Nature	Important Resolutions
2025/6/19	Regular Shareholders' Meeting	1. Approval of the 2024 Annual Operating Report and Financial Statements
2. Approval of the 2024 Earnings Distribution Proposal
3. Approval of the amendments to the “Articles of Incorporation” of the Company.
4. Approval of issuance of the Restricted Stock Awards for 2025.
5. Proposal for the Re-election of Directors (Including Independent Directors).
6. Proposal to lift non-competition restrictions on newly elected directors (including independent directors).	1. Upon approval of various proposals as they were, the announcement will be completed and made public on the Market Observation Post System by June 19, 2025.
2. On August 11, 2025, the re-election of directors, appointment of the Chairman and registration of amendments to the Articles of Incorporation have been completed.

Board of Directors

Time	Session	Important Resolutions
2025/3/13	17^{th} meeting of the 6^{th} Board of Directors	Proposal 1 The Company's operating report for fiscal year 2024, as well as individual financial statements and consolidated financial statements.
Proposal 2 The Company's overseas investment company did not repatriate profits for fiscal year 2024.
Proposal 3 2024 Earnings Distribution Proposal.
Proposal 4 Changing the appointment of the signing accountant for 2025 in this Company and evaluating the independence and suitability of the signing accountant with reference to audit quality indicators.
Proposal 5 The Company established a general policy for “pre-approval of non-assurance services.”
Proposal 6 The Company's domestic unsecured convertible corporate bonds were converted into common stock for the second and third time in the fourth quarter of fiscal year 2024 to issue new shares.
Proposal 7 Proposal to Issue Restricted Employee Stock Awards for 2025.
Proposal 8 The Company's 'Statement of Internal Control Systems' for the period from January 1, 2024 to December 31, 2024.
Proposal 9 Bank Credit Financing Case.
Proposal 10 Revise the “Articles of Incorporation” of our Company.
Proposal 11 Proposal for the Re-election of Directors (Including Independent Directors).
Proposal 12 Proposal for the nomination of candidates for the seventh term of directors (including independent directors) and review of the independence of independent director candidates.
Proposal 13 Proposal to lift non-compete restrictions on newly elected directors (including independent directors).

Time	Session	Important Resolutions
		Proposal 14 The Company will hold its 2025 annual shareholders' meeting.
Proposal 15 The Company’s employee compensation and director remuneration allocation proposal for the fiscal year 2024.
Proposal 16 The Company’s performance-based bonus issuance for managers in the second half of fiscal year 2024.
Proposal 17 The change in management for our Company.
2025/5/14	18th meeting of the 6th Board of Directors	Proposal 1 The Company’s consolidated financial report for the first quarter of fiscal year 2025.
Proposal 2 The Company's third domestic unsecured convertible corporate bonds were converted into common stock in the first quarter of fiscal year 2025 to issue new shares.
Proposal 3 Amendment to the Company's internal control system regarding the salary/wage cycle, specifically sections "GTAA-CH106 Overtime Operations" and "GTAA-CH108 Performance Appraisal Operations."
Proposal 4 Amendment to the “Organizational Structure of Sustainability and Risk Management Committee” of the Company.
Proposal 5 Amendment to the “Charter of the Sustainability and Risk Management Committee” of the Company.
Proposal 6 Re-enactment of the Company’s “Risk Management Policies and Procedures”.
Proposal 7 Amendment to the Company’s “Regulations Governing the Preparation and Reporting of Sustainability Reports.”
Proposal 8 Amendment to the Company’s Internal Control System “GTAA-CO119 Regulations Governing the Preparation and Reporting of Sustainability Reports.”
Proposal 9 In response to the operational needs of the Thailand factory, the Company plans to increase its investment fund from THB450 million to THB1 billion.
Proposal 10 Bank credit financing case.
Proposal 11 Amendments to the "Regulations Governing Bonus"
Proposal 12 Amendments to the “Regulations Governing Total Compensation”
2025/6/19	1st meeting of the 7th Board of Directors	Proposal 1 Appointment of the Chairman
Proposal 2 Proposal for the execution of the industry-academia cooperation and academic reward mechanism contract between the Company and National Taipei University of Business
2025/8/13	2nd meeting of the 7th Board of Directors	Proposal 1 The Company’s consolidated financial report for the second quarter of fiscal year 2025.
Proposal 2 A proposal to loan US$6 million (approximately BHT192,600 thousand) to the subsidiary in Thailand, GLOBAL TEK GROUP (THAI) CO., LTD..
Proposal 3 The Company’s “2024 Sustainability Report.”
Proposal 4 Addition of the Company's "Regulations Governing Linkage of Remuneration to Senior Management and Sustainability Performance."
Proposal 5 Distribution of employee remuneration to managers for 2024
Proposal 6 The issuance of performance bonuses for managers in the first half of 2025.
2025/11/13	3rd meeting of the 7th Board of Directors	Proposal 1 The Company’s consolidated financial report for the third quarter of fiscal year 2025.
Proposal 2 The Company's third domestic unsecured convertible corporate bonds were converted into common stock in the third quarter of fiscal year 2025 to issue new shares.
Proposal 3 The subsidiary in Thailand wholly owned by the Company, GLOBAL TEK GROUP (THAI) CO., LTD. (hereinafter referred to as “GROUP (THAI)”), proposed to apply for a long-term credit facility from Mega International Commercial Bank Public Company Ltd., Luoyong Branch and ask the Company to provide the endorsement and guarantee.
Proposal 4 Bank Credit Financing Case.
Proposal 5 Proposal to amend the Regulations Governing Issuance of Restricted Stock Awards for 2025
Proposal 6 Proposal to issue the RSAs totaling 500,000 shares for 2025.

Time	Session	Important Resolutions
		Proposal 7 Clearly define the standards for identifying "entry-level employees" of the Company Proposal 8 Change of the Company's managers
2025/12/23	4th meeting of the 7th Board of Directors	Proposal 1 The Company's operating plan and budget proposal for 2026 Proposal 2 The internal audit plan for the fiscal year 2026 Proposal 3 Amendments to the "Sustainable Development Best Practice Principles" of the Company. Proposal 4 Qualifications of the accounting officer to be appointed by the Company and review on remuneration. Proposal 5 Review on remuneration of the new General Manager of the factory premises.
2026/3/12	5th meeting of the 7th Board of Directors	Proposal 1 The Company's operating report for fiscal year 2025, as well as individual financial statements and consolidated financial statements. Proposal 2 The Company's overseas investment company did not repatriate profits for fiscal year 2025. Proposal 3 2025 Earnings Distribution Proposal. Proposal 4 Changing the appointment of the signing accountant for 2026 in this Company and evaluating the independence and suitability of the signing accountant with reference to audit quality indicators. Proposal 5 The Company established a general policy for "pre-approval of non-assurance services." Proposal 6 Proposal for determination of the actual number of shares for the 1st issuance of the RSAs for 2025. Proposal 7 Proposal for the Company's "Statement of Internal Control System" for 2025. Proposal 8 The Company's subsidiary, Global Tek (Suzhou) Precision Industry Co., Ltd. (hereinafter referred to as Global Tek (Suzhou)), in which the Company directly and indirectly holds 90.34% of the shares, proposes to apply for a short-term financing facility from Bank SinoPac (China) Ltd. and ask the Company to provide the endorsement and guarantee. Proposal 9 Bank Credit Financing Case. Proposal 10 Proposal for increase in the Company's capital expenditure for 2026. (Resolution Canceled) Proposal 11 Proposal to convene the Company's 2026 annual general meeting. Proposal 12 The Company's employee and director remuneration distribution proposal for fiscal year 2025. Proposal 13 Review on remuneration of the new General Manager of the factory premises. Proposal 14 The Company's issuance of performance bonus for managers in the second half of 2025.

(XII) For the recent fiscal year and up until the date of the annual report's publication, there were no recorded instances or written statements of directors or supervisors expressing dissenting opinions on significant resolutions passed by the Board of Directors.

IV. Information on CPA Professional Fees

Currency Unit: NTD Thousand

Name of Accounting Firm	Accountant's name	Accountant's Audit Period	Audit of Public Funds	Non-Audited Public Funds	Total	Remarks
Ernst & Young	Cheng, Ching-Piao, CPA	January 1, 2025 ~ December 31, 2025	6,260	1,515	7,775	Note
	Fuh, Wen-Fun CPA

Note: The breakdown of non-audit fees - other is as follows: tax attestation NT$450 thousand, transfer pricing report NT$450 thousand, PPA assessment report NT$300 thousand, government fees for RSAs NT$85 thousand, announcement and filing of financial statements NT$100 thousand, and others NT$130 thousand.

(I) In the event of a change in accounting firms and a subsequent decrease in the audit fees paid annually compared to the previous fiscal year, the amounts of audit fees before and after the change, as well as the reasons for the change, should be disclosed: This situation did not occur.

(II) In instances where the audit fees have decreased by more than 10% compared to the previous fiscal year, the amount, percentage, and reasons for the decrease in audit fees should be disclosed: None.

V. Information on Replacement of CPAs:

(I) Regarding the Former Accountant: None.

(II) Regarding the Continuing Accountant: None.

(III) The former accountant's response to the three issues under Item 1 and Item 2 of Article 10, Section 6 of the "Guidelines for Matters to be Recorded in the Annual Report of Publicly Issued Companies": None.

VI. The Chairman, President, or Any Managerial Officer in Charge of Finance or Accounting Matters in the Most Recent Fiscal Year Holding a Position at the CPAs' Accounting Firm or an Affiliate of the Accounting Firm: None.

VII. Any Transfer of Equity Interests and Pledge of or Change in Equity Interests During the Most Recent Fiscal Year and during the Current Fiscal Year Up to the Date of Publication of the Annual Report by a Director, Supervisor, Managerial Officer, or Shareholder with a Stake of More than 10%

(I) Changes in the transfer or pledge of shares by directors, supervisors, managers, and major shareholders: Please refer to the MOPS > Single Company > Changes in Equity/Issuance of Securities> Share Transfer Information Inquiry > Insider Shareholding Change Report https://mops.twse.com.tw/mops/#/web/query6_1; MOPS > Single Company > Changes in Equity/Issuance of Securities > Insider Pledge/Termination of Pledge > Insider Pledge/Termination of Pledge Announcement https://mopsov.twse.com.tw/mops/web/STAMAK03_1.

(II) In cases where the counterparty to a stock transfer is a related party, the name of the related party, their relationship with the Company, directors, supervisors, managers, and shareholders holding more than ten percent of the shares should be disclosed, along with the number of shares acquired: None.

(III) In cases where the counterparty to a stock transfer is a related party, the name of the related party, their relationship with the Company, directors, supervisors, managers, and shareholders holding more than ten percent of the shares should be disclosed, along with the number of shares acquired: None.

VIII. Relationship Information, if among the Company's Ten Largest Shareholders Any One Is a Related Party, Spouse, or a Relative within the Second Degree of Kinship of Another

April 11, 2026; Unit: Shares/%

Name	Personally holds shares in the company	Spouses and minor children holding shares	Collectively holding shares on behalf of others	The top ten shareholders have relationships with each other, either as related parties or as spouses, or as relatives within the second degree of kinship. Their names or surnames and relationships are provided.	Remarks
Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio	Number of Shares	Shareholding Ratio
Ting, Ling-Chuan	13,523,000	12.29%	0	0	0
Haochi Investment Co., Ltd. Representative: Huang, Chi	8,128,000	7.39%	0	0	0
Liu, Tsu-Yin	Supervisor
Huang, Hao	Director
Huang, Chi	Chairman
2,728,618	2.48%	0	0	0	0
Liu, Tsu-Yin	Mother and Daughter
Huang, Hao	Sisters
Hsingying Investment Co., Ltd. Representative: Huang, Hao	7,854,000	7.14%	0	0	0
Liu, Tsu-Yin	Supervisor
Huang, Hao	Chairman
Huang, Chi	Director
3,311,000	3.01%	0	0	0	0
Liu, Tsu-Yin	Mother and Daughter
Huang, Chi	Sisters
Huang, Yah-Hsing	6,226,695	5.66%	3,226,665	2.93%	0
Huang, Hao	Father and Daughter
Huang, Chi	Father and Daughter
Huang, Hao	3,311,000	3.01%	0	0	0
Liu, Tsu-Yin	Mother and Daughter
Huang, Chi	Sisters
Liu, Tsu-Yin	3,226,665	2.93%	6,226,695	5.66%	0
Huang, Hao	Mother and Daughter
Huang, Chi	Mother and Daughter
Huang, Chi	2,728,618	2.48%	0	0	0
Liu, Tsu-Yin	Mother and Daughter
Huang, Hao	Sisters
Gains Investment Corporation Representative: Chen, Kuan-Fu	2,431,620	2.21%	0	0	0
0	0	0	0	0	0
Liu, Kuang-Hung	1,910,000	1.74%	33,000	0.03%	0
Shi Yi Co., Ltd. Representative: Huang, Chi	1,400,000	1.27%	0	0	0
Lin, Chia-Pei	Director	-
Liu, Cheng-Tai	Supervisor	-
2,728,618	2.48%	0	0	0	0
Liu, Tsu-Yin	Mother and Daughter
Huang, Hao	Sisters

IX. Total Number of Shares and Total Equity Stake Held in Any Single Investee Company by the Company, Its Directors and Supervisors, Managerial Officers, and Any Companies Controlled Either Directly or Indirectly by the Company:

December 31, 2025 Unit: thousands of shares; %

Reinvestment Business Operations	Our Company has made investments		Directors, supervisors, managers, and those who directly or indirectly control the business investments.		Comprehensive Investment
	Number of Shares	Percentage of Ownership	Number of Shares	Percentage of Ownership	Number of Shares	Percentage of Ownership
GLOBAL TEK CO., LTD.	20,000	100	0	0	20,000	100
Global TEK FABRICATION CO., LTD. (Samoa)	Note 1	100	0	0	Note 1	100
GLOBAL TEK GmbH	Note 1	100	0	0	Note 1	100
Global Tek, Inc.	0	0	Note 1	100	Note 1	100
Global TEK CO., LTD.	0	0	Note 1	100	Note 1	100
Global TEK FABRICATION CO., LTD. (Hong Kong)	0	0	Note 1	100	Note 1	100
GLOBAL TEK(XI'AN) CO., LTD.	0	0	Note 1	100	Note 1	100
GLOBAL TEK(WU'XI) CO., LTD.	0	0	Note 1	100	Note 1	100
GLOBAL TEK METAL MANUFACTURING (SHAANXI) CO;LTD	0	0	Note 1	100	Note 1	100
Global Tek (Suzhou) Precision Industry Co., Ltd.	0	0	Note 1	90.34	Note 1	90.34
AvioCast Inc.	15,961	59.56	0	0	15,961	59.56
GLOBAL TEK 株式会社	2,700	90	0	0	2,700	90
GLOBAL TEK GROUP (THAI) CO., LTD.	5,000	100	0	0	5,000	100
GLOBAL TEK AVIATION (THAI) CO., LTD.	600	100	0	0	600	100

Note 1: Limited liability Company.

Three. Fundraising Status

I. Capital and Shares

(I) Sources of Share Capital

April 11, 2026 Unit: Thousand shares; NTD Thousand

Year and Month	Issue Price (NT$)	Authorized Share Capital		Paid-in Capital		Remarks
		Number of Shares	Amount	Number of Shares	Amount	Sources of Share Capital	Those who offset the share capital with assets other than cash	Other
April 2025	42.9&50.6	150,000	1,500,000	109,721	1,097,208	Conversion of Corporate Bonds into Common Stocks	-	Note 1
June 2025	50.6	150,000	1,500,000	109,810	1,098,097	Conversion of Corporate Bonds into Common Stocks	-	Note 2
December 2025	49.6	150,000	1,500,000	109,812	1,098,117	Conversion of Corporate Bonds into Common Stocks	-	Note 3
January 2026	26.45	150,000	1,500,000	109,955	1,099,547	(II) Proposal to Issue Restricted Stock Awards (RSAs)	-	Note 4

Note 1: The Company has converted its corporate bonds into 898,076 common shares, which has been officially approved under Jing-Shou-Shang-Zi No. 11430042530.
Note 2: The Company has converted its corporate bonds into 88,928 common shares, which has been officially approved under Jing-Shou-Shang-Zi No. 11430070290.
Note 3: The Company has converted its corporate bonds into 2,016 common shares, which has been officially approved under Jing-Shou-Shang-Zi No. 11430183230.
Note 4: 143,000 restricted stock warrants have been issued, which were officially approved and recorded under Jing-Shou-Shang-Zi No. 11530014250.

April 11, 2026; Unit: Shares

Type of Shares	Authorized Share Capital			Remarks
	Outstanding Shares	Unissued Shares	Total
Common Stock	109,993,047 (note)	40,006,953	150,000,000	Publicly Traded Stocks

Note: There are still 38,305 shares that have not yet undergone the necessary change of registration.

(II) List of Principal Shareholders

The names, shareholding amounts, and percentages of shareholders who hold more than 5% of the equity, or who are among the top ten shareholders in terms of equity percentage.

April 11, 2026

Shares Primary Shareholder Name	Number of Shares Held	Shareholding Ratio (%)
Ting, Ling-Chuan	13,523,000	12.29
Haochi Investment Co., Ltd.	8,128,000	7.39
Hsingying Investment Co., Ltd.	7,854,000	7.14
Huang, Yah-Hsing	6,226,695	5.66
Huang, Hao	3,311,000	3.01
Liu, Tsu-Yin	3,226,665	2.93
Huang, Chi	2,728,618	2.48
Gains Investment Corporation	2,421,620	2.20
Liu, Kuang-Hung	1,910,000	1.74
Shi Yi Co., Ltd.	1,400,000	1.27

(III) Status and Implementation of the Company's Dividend Policy

Dividend Policy Specified in the Company's Articles of Incorporation:

If there is any surplus in the Company's annual accounts, the Company shall pay tax and make up for the accumulated deficit, and then set aside 10% as the legal reserve, provided that if the reserve has reached the Company's paid-in capital, no further provision shall be made, and the remainder shall be set aside or reversed to a special reserve as required by law. If there is still any unappropriated earnings, the Board of Directors shall prepare a proposal for distribution of earnings and submit it to the shareholders' meeting for resolution.

Where any surplus, legal reserve and additional paid-in capital specified in the preceding Paragraph shall be distributed in cash, the Company may authorize to distribute after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting. Where any surplus, legal reserve and additional paid-in capital specified in the preceding Paragraph shall be distributed in cash, TUC may authorize to distribute after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting.

The Company's corporate life cycle is at a stage of maturity and development. The dividend policy is based on factors such as the Company's financial structure, operating conditions and capital budget, taking into account the interests of shareholders, and allocating no less than 10% of the dividends to shareholders every year. However, if the cumulative profit available for distribution is less than 1% of the paid-in capital, the dividends will not be distributed. The dividends may be distributed in the form of shares or cash, where the cash dividend is no less than 10% of the total dividend, but may be adjusted according to the actual situation of the Company.

Proposed Dividend Distribution Scenario for the Current Shareholders' Meeting:

According to the Articles of Incorporation, the distribution of profits in cash is authorized by a resolution passed by more than two-thirds of the directors present at a board meeting, and this decision is reported to the shareholders' meeting. On March 12, 2026, the Company's Board of Directors approved the 2025 profit distribution plan. The total cash dividend amount is NT$75,000,000. The ex-dividend date is set for April 15, 2026 and the cash dividend payment date is May 13, 2026. This will be reported at the 2026 annual general meeting.

(IV) The proposed impact of the gratuitous stock distribution on the Company's business performance and earnings per share, as discussed in this shareholders' meeting:

The Board of Directors passed a resolution on March 12, 2026 to distribute cash dividends instead of issuing bonus shares. This decision will not have any impact on the Company's business performance or earnings per share.

(V) Employee, Director, and Supervisor Compensation

The percentage or range of compensation for employees, directors, and supervisors, as specified in the Company's Articles of Incorporation:

If the Company has profits for the year (referring to the profit before the deduction of the employee remuneration and the directors' remuneration), the Company shall allocate 1% ~ 10% to the employee remuneration, of which 25% of the total employee remuneration distributed should be allocated to entry-level employees, which shall be distributed by the Board of Directors by way of shares or cash; the Company shall be able to raise the amount of profits, and the Board of Directors shall allocate no more than 2% to the directors' remuneration. The distribution proposal of employee and director compensation shall be submitted to the Shareholder's Meeting. However, if the Company still has accumulated losses, it shall reserve the amount to make up for the losses first, then allocate employee and director compensation in proportion to the preceding paragraph.

The Company's employee treasury stocks, employee stock options, new shares subscription by employees, new restricted employee shares, and employee compensation, etc., may include qualification requirements of employees, including the employees of subsidiaries of the Company meeting certain specific requirements.

The accounting treatment for the discrepancy between the estimated basis for providing compensation to employees, directors, and supervisors, the basis for calculating the number of shares for employee compensation in the form of stock distribution, and the actual distribution amount, if it differs from the estimated amount, during this period is as follows:

After the fiscal year ends, any significant changes in the approved distribution amount by the Board of Directors prior to the release of this consolidated financial report will be adjusted in the originally recorded annual expenses. If there are further changes in the amount after the release of this report, the adjustment will be made in the following fiscal year using accounting estimates.

The Board of Directors has approved the allocation of remuneration:

(1) The distribution of employee remuneration and remuneration for directors and supervisors, whether in the form of cash or stock:

The Board of Directors approved the proposal for the allocation of director remuneration and employee compensation for the fiscal year 2025 of the Company on March 12, 2026. A total of NT$1,576,702 will be allocated for director remuneration and NT$3,153,405 for employee remuneration (25% of which shall be allocated as the remuneration to entry-level employees, i.e. NT$788,351), which aligns with the estimated figures on the books.

(2) The ratio of employee compensation distributed as stock dividends to the total net profit after tax and total employee compensation in the current period or individual financial reports:

The Board of Directors of the Company, on March 12, 2026, approved the employee remuneration distribution plan for the 2025 fiscal year. It was determined that employee remuneration would not be distributed in the form of stocks, making it inapplicable.

The distribution of employee, director, and supervisor remuneration in the previous year, including the number of shares distributed, the amount, and the stock price, should be disclosed. Any discrepancies between this distribution and the recognition of employee, director, and supervisor remuneration should also be explained, including the difference amount, reasons, and how it was handled.

The Company's distribution of remuneration for employees and directors for the fiscal year 2024 was reported at the annual general meeting on June 19, 2025. The directors' remuneration amounted to NT$2,949,724, and the employees' remuneration totaled NT$5,899,448. There was no discrepancy between the reported and recognized remuneration for employees and directors.

(VI) The Company's Repurchase of Its Own Shares:

Executed:

Repurchase time	First time of 2018
Purpose of repurchase	Transfer of shares to employees
Repurchase period	November 15, 2018 to January 9, 2019
Repurchase interval price	41.50~46.35
Types and quantities of repurchased shares	Common Stock
247,000 shares
Amount of repurchased shares	NT$10,551,056
Percentage of repurchased quantity compared to the planned repurchase quantity (%)	12.35%
Number of shares disposed of and transferred	247,000 shares
Accumulated number of shares held by the Company	0 shares
Percentage of the total number of issued shares represented by cumulative holdings in our Company (%)	0%

There are currently no ongoing tasks.

II. Issuance of Corporate Bonds:

(I) Issuance of Corporate Bonds

Type of Corporate Bonds		First domestic unsecured convertible corporate bond
Date of Issue		August 27, 2019
Denomination		NT$100,000
Location of Issuance and Trading		Domestic Issuance and OTC Trading Center Listing
Issue Price		Issued at 101% of the face value
Total		NT$600 million
Interest rate		Interest rate: 0%
Deadline		Term: 5 years, Maturity Date: August 27, 2024
Guarantee Institution		None
The contractor		Taiwan Land Bank Co., Ltd.
Underwriting institution		KGI Securities Co., Ltd.
Visa Lawyer		Handsome Attorneys-at-Law Peng, Yi-Cheng, Esq.
CPA		Deloitte Taiwan Chen, Hui-Ming, CPA, and Li, Li-Huang, CPA
Repayment Method		Except for bondholders who convert their bonds to common stock of the Company in accordance with Article 10 of these regulations, exercise their right of repurchase in accordance with Article 19 of these regulations, or redeem their bonds in advance in accordance with Article 18 of these regulations, or those that are repurchased and canceled by the Company through securities dealerships, the Company shall repay the convertible corporate bonds held by bondholders in cash at the maturity of the bonds, along with interest compensation based on the face value of the bonds.
Unpaid principal		NT$0
Redemption or Early Repayment Clause		Please refer to our Company's first domestic unsecured convertible bond issuance and conversion method.
Restrictions Clause		None
Name of Credit Rating Agency, Rating Date, Corporate Bond Rating Result		None
Other Rights	The number of common stocks, overseas depositary receipts, or other securities that have been converted (exchanged or subscribed) as of the date of printing of the annual report	None
	Issuance and Conversion (exchange or subscription of shares) Measures	Please refer to our Company's first domestic unsecured convertible bond issuance and conversion method.
The issuance, conversion, exchange, or stock subscription methods, the conditions of issuance, the potential dilution of equity, and the impact on the rights of existing shareholders.		Before bondholders exercise their conversion rights, the conversion of corporate bonds does not dilute equity. During the convertible period, bondholders can choose the most opportune time to convert, which leads to a gradual and distributed dilution of equity. When the conversion occurs into common stock, it not only reduces debt but also boosts shareholders' equity, thereby improving the net value per share. Up to the convertible bond maturity date of August 27, 2024, convertible bonds with a face value of NT$

		600,000 thousand have been exercised for conversion, resulting in the conversion of all bonds into 13,224,861 common shares of the Company.
Name of the custodian responsible for the exchange target		None
Type of Corporate Bonds		Second domestic unsecured convertible bond
---	---	---
Date of Issue		January 3, 2022
Denomination		NT$100,000
Location of Issuance and Trading		Domestic Issuance and OTC Trading Center Listing
Issue Price		Issued at 111.8% of the face value
Total		NT$630,000,000
Interest rate		Interest rate: 0%
Deadline		Three-year term, Maturity Date: January 3, 2025
Guarantee Institution		None
The contractor		Taiwan Land Bank Co., Ltd.
Underwriting institution		KGI Securities Co., Ltd.
Visa Lawyer		Handsome Attorneys-at-Law Peng, Yi-Cheng, Esq.
CPA		Deloitte Taiwan Li, Li-Huang, CPA, and Chih, Jui-Chuan, CPA
Repayment Method		Except for the holders of this convertible corporate bond who convert it into common stock of the Company in accordance with Article 10 of this method, or the Company redeems it in advance in accordance with Article 18 of this method, or the Company buys it back from a securities dealer and cancels it, the Company should repay the bond in cash at its face value within five business days after the maturity date of this convertible corporate bond.
Unpaid principal		NT$0
Redemption or Early Repayment Clause		Please refer to our Company's second domestic unsecured convertible bond issuance and conversion method
Restrictions Clause		None
Name of Credit Rating Agency, Rating Date, Corporate Bond Rating Result		None
Other Rights	The number of common stocks, overseas depositary receipts, or other securities that have been converted (exchanged or subscribed) as of the date of printing of the annual report	None
	Issuance and Conversion (exchange or subscription of shares) Measures	Please refer to our Company's second domestic unsecured convertible bond issuance and conversion method
The issuance, conversion, exchange, or stock subscription methods, the conditions of issuance, the potential dilution of equity, and the impact on the rights of existing shareholders.		Before bondholders exercise their conversion rights, the conversion of corporate bonds does not dilute equity. During the convertible period, bondholders can choose the most opportune time to convert, which leads to a gradual and distributed dilution of equity. When the conversion occurs into common stock, it not only reduces debt but also boosts shareholders' equity, thereby improving the net value per share. Up to the convertible bond maturity date of January 3, 2025, convertible bonds with a face value of NT$

100

		629,900 thousand have been exercised for conversion, bonds with a face value of NT$ 100 thousand have been redeemed, and the conversion resulted in 14,029,876 common shares of the Company.
Name of the custodian responsible for the exchange target		None
Type of Corporate Bonds		Third domestic unsecured convertible bond
---	---	---
Date of Issue		November 27, 2023
Denomination		NT$100,000
Location of Issuance and Trading		Domestic Issuance and OTC Trading Center Listing
Issue Price		Issued at 106.15% of the face value
Total		NT$800,000,000
Interest rate		Interest rate: 0%
Deadline		Term: Three years, Maturity Date: November 27, 2026
Guarantee Institution		None
The contractor		Taiwan Land Bank Co., Ltd.
Underwriting institution		KGI Securities Co., Ltd.
Visa Lawyer		Handsome Attorneys-at-Law Peng, Yi-Cheng, Esq.
CPA		Ernst & Young Accountants Cheng, Ching-Piao and Fuh, Wen-Fun
Repayment Method		Except for the holders of this convertible corporate bond who convert it into common stock of the Company in accordance with Article 10 of this method, or the Company redeems it in advance in accordance with Article 18 of this method, or the Company buys it back from a securities dealer and cancels it, the Company should repay the bond in cash at its face value within ten business days after the maturity date of this convertible corporate bond.
Unpaid principal		NT$39,700,000
Redemption or Early Repayment Clause		Please refer to our Company's third domestic unsecured convertible bond issuance and conversion method
Restrictions Clause		None
Name of Credit Rating Agency, Rating Date, Corporate Bond Rating Result		None
Other Rights	The number of common stocks, overseas depositary receipts, or other securities that have been converted (exchanged or subscribed) as of the date of printing of the annual report	None
	Issuance and Conversion (exchange or subscription of shares) Measures	Please refer to our Company's third domestic unsecured convertible bond issuance and conversion method
The issuance, conversion, exchange, or stock subscription methods, the conditions of issuance, the potential dilution of equity, and the impact on the rights of existing shareholders.		Before bondholders exercise their conversion rights, the conversion of corporate bonds does not dilute equity. During the convertible period, bondholders can choose the most opportune time to convert, which leads to a gradual and distributed dilution of equity. When the conversion occurs into common stock, it not only reduces debt but also boosts shareholders' equity, thereby improving the net value per share. As of March 19, 2026, the convertible corporate bonds with a face value of NT$760,300 thousand have been

101

	converted, resulting in 15,026,310 common shares. The total outstanding convertible corporate bonds not yet converted amount to NT$39,700 thousand, with a conversion price of NT$49.60. If all of them are converted into common shares of the Company, it will result in 800,403 shares.
Name of the custodian responsible for the exchange target	None

(II) Conversion of Corporate Bond Data

Type of Corporate Bonds		First domestic unsecured convertible corporate bond
Year Item		2024
Conversion of Corporate Bond Market Price	Max	270.00
	Min	115.00
	Average	172.11
Conversion Price		43.90 and 42.70 (note)
Issue Date and Conversion Price at the Time of Issue		Date of Issue: August 27, 2019
Conversion Price at Issuance: NT$ 50
Method for Fulfilling Conversion Obligations		New shares are issued for delivery.

Note: The conversion price will be adjusted as follows: from NT$ 50.00 to NT$ 47.90 starting from August 5, 2020; from NT$ 47.90 to NT$ 46.80 starting from August 5, 2021; from NT$ 46.80 to NT$ 45.60 starting from August 5, 2022; from NT$ 45.60 to NT$ 43.90 starting from May 6, 2023; and from NT$ 43.90 to NT$ 42.70 starting from May 3, 2024. The maturity date of the convertible bonds is August 27, 2024.

Type of Corporate Bonds		Second domestic unsecured convertible bond
Year Item		2024	As of January 3, 2025
Conversion of Corporate Bond Market Price	Max	264.00	-
	Min	115.50	-
	Average	167.82	-
Conversion Price		44.10 and 42.90 (note)	42.90 (note)
Issue Date and Conversion Price at the Time of Issue		Issue Date: January 3, 2022
Conversion Price at Issuance: NT$47
Method for Fulfilling Conversion Obligations		New shares are issued for delivery.

Note: As of August 5, 2022, the conversion price has been adjusted from NT$ 47.00 to NT$ 45.80; starting from May 6, 2023, from NT$ 45.80 to NT$ 44.10; starting from May 3, 2024, NT$ 44.10 to NT$ 42.90. The maturity date of the convertible bonds is January 3, 2025.

Type of Corporate Bonds		Third domestic unsecured convertible bond
Year Item		2025	As of March 31, 2026
Conversion of Corporate Bond Market Price	Max	164.00	123.50
	Min	110.15	112.35
	Average	135.58	119.91
Conversion Price		50.60 and 49.60 (note)	49.60 (note)
Issue Date and Conversion Price at the Time of Issue		Issue Date: November 27, 2023
Conversion Price at Issuance: NT$52
Method for Fulfilling Conversion Obligations		New shares are issued for delivery.

Note: As of May 3, 2024, the conversion price has been adjusted from NT$52.00 to NT$50.60; starting from April 25, 2025, from NT$50.60 to NT$49.60.

III. Issuance of Preference Shares: None.

IV. Global Depository Receipts: None.

V. Employee Stock Options: None.

VI. Issuance of RSAs:

(I) Issuance of RSAs
April 11, 2026

Type of Restricted Stock Awards (RSAs)	1st Restricted Stock Awards (RSAs) in 2025
Effective date of report and total number of shares declared	September 19, 2025
500,000 shares
Date of Issue	January 15, 2026
Number of shares of issued RSAs	143,000 shares
Number of shares of RSAs that may be issued.	357,000 shares
Issue Price	NT$26.45
Number of shares of issued RSAs as a percentage of total issued shares (Note)	0.13%
Vesting conditions for RSAs	1. Employees who have been granted restricted stock awards must meet all of the following conditions to vest:
(1) The employee must remain employed on each applicable vesting date;
(2) The employee must not have violated any agreements or work rules entered into with the Company or any of its controlled companies or subsidiaries at home and abroad;
(3) The employee must achieve an overall performance rating of grade B or a score of 90 or above according to the Company’s personnel performance appraisal policy.
2. Employees who have been granted restricted stock awards and who remain employed through the following periods, and whose individual and operational performance meet the target performance criteria set by the Company, shall vest in the corresponding percentages of their awards as follows:
(1) After one year, if the employee remains employed by the Company and has met the target individual and operational performance criteria in the preceding year, 40% of the RSAs shall vest.
(2) After two years, if the employee remains employed by the Company and has met the target individual and operational performance criteria in the preceding year, an additional 30% of the RSAs shall vest.
(3) After three years, if the employee remains employed by the Company and has met the target individual and operational performance criteria in the preceding year, the remaining 30% of the RSAs shall vest.

| Restricted rights in RSAs | 1. Employees who are granted the RSAs may not sell, transfer, gift, pledge, request the Company to repurchase, or otherwise dispose of the RSAs before the vesting conditions are met, except through inheritance.
2. Prior to meeting the vesting conditions of the RSAs issued pursuant to the Regulations, the rights to attend, propose, speak, and vote at shareholders’ meetings shall be exercised according to the trust custody agreement.
3. Prior to vesting, employees shall not enjoy rights to dividends, bonuses, or capital reserves from the RSAs. Other shareholder rights shall be the same as those of the issued common shares of the Company.
4. From fifteen business days before the suspension date for share transfers due to stock dividends or cash dividends, until the record date for rights distribution, employees whose shares have vested during this period shall not be entitled to such earnings distribution on the shares that have been released from restriction.
5. If an employee who has been granted restricted stock awards violates the labor contract, work rules, or has their agency authorization from the Company revoked before the vesting conditions are met, the Company may repurchase the unvested restricted stock awards at the issuance price and cancel them. |
| --- | --- |
| Custody of RSAs | The restricted stock awards issued by the Company shall be held in trust, and the Company or its designated person shall act as agent to sign and amend trust-related agreements and to fully manage related trust matters on behalf of the employees who are granted the shares. |
| Resolution if the employee fails to meet the vesting conditions after being allotted the RSAs or subscribing for new shares. | If an employee fails to meet the vesting conditions, the unvested shares allocated to the employee shall be repurchased by the Company at the issue price and cancelled. |
| Number of shares of RSAs that are already recalled or repurchased. | 0 shares |
| Number of shares for terminated RSAs | 0 shares |
| Number of shares for RSAs yet terminated | 143,000 shares |
| Number of shares for RSAs yet terminated as a percentage of the total number of issued shares (%) (Note) | 0.13% |
| Effect to shareholders’ equity | The amount that may be expensed is based on the fair value, namely NT$51.8 per share, on November 13, 2025, and the total amount of expenses amortized over three years was NT$3,625,050. The number of shares of issued RSAs as a percentage of total issued shares is 0.13%, which produced no significant effect on shareholders' equity. |

Note: The total issued shares were calculated as 109,954,742 shares.

104

(II) Names of managers receiving RSAs, names of employees ranking top ten in RSAs acquired, and total amount acquired

April 11, 2026

	Title	Name	Number of shares of RSAs acquired (shares)	Acquired RSAs as a percentage of the total number of issued shares	Terminated RSAs				RSAs yet terminated
					Number of shares of terminated RSAs (shares)	Issue Price (NT$)	Issue amount (NT$)	Terminated RSAs as a percentage of the total number of issued shares	Number of shares of RSAs yet terminated (shares)	Issue Price (NT$)	Issue amount (NT$)	Number of shares of RSAs yet terminated as a percentage of the total number of issued shares
Managerial Personnel	Vice President of Automotive Business Group	Chao, Lo-Shun	133,000	0.12%	0	26.45	3,517,850	0%	133,000	26.45	3,517,850	0.12%
	Quality Department Director	Teng, Kun-Sung
	Deputy Director, Business Engineering Department	Lai, Ming-Chang
	Deputy General Manager	Li, Hung-Chun
	Deputy Director	Chen, Yi-Wen
	Manager	Liao, Yen-Sheng
	Technical Manager	Hsu, Chia-Pin
Top ten employees	Senior Engineer	Yu, Yu-Chang	10,000	0.01%	0	26.45	264,500	0%	10,000	26.45	264,500	0.01%

Note: Said positions refer to those held by employees at the subsidiaries. The top ten employees refer to the employees other than managers. The total issued shares were calculated as 109,954,742 shares.

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

VIII. Implementation status of capital allocation plans:

Please refer to the MOPS website > Single Company > Changes in Shareholders' Equity/Issuance of Securities > Fundraising > Fundraising Plan Implementation https://mopsov.twse.com.tw/mops/web/bfhtm_q2

Four. Operation Overview

I. Business Activities

(I) Scope of Business

The main content of the Company's business:

The Company's registered businesses are as follows:

(1) C805050 Plastic Products Manufacturing Industry
(2) CA01030 Iron and Steel Foundry Industry
(3) CA01050 Steel secondary processing
(4) CA01090 Aluminum casting
(5) CA01100 Aluminum rolling, drawing and extruding
(6) CA01120 Copper casting
(7) CA01990 Other non-ferrous metal basic industries
(8) CA02010 Metal Structure and Construction Component Manufacturing
(9) CA02030 Manufacturing of screws, nuts, screws, nails and other products
(10) CA02040 Spring Manufacturing
(11) CA02050 Valve Manufacturing
(12) CA02070 Lock industry
(13) CA02080 Metal forging
(14) CC01010 Power generation, transmission and distribution machinery manufacturing
(15) CC01020 Wire and cable manufacturing
(16) CC01030 Electrical Appliances and Audiovisual Electronics Manufacturing
(17) CC01040 Manufacturing of Lighting equipment
(18) CC01060 Wired Communication Equipment and Apparatus Manufacturing
(19) CC01070 Telecommunication Equipment and Apparatus Manufacturing
(20) CC01080 Manufacturing of Electronic Component
(21) CC01090 Manufacturing of Batteries
(22) CC01110 Manufacturing of Computers and its Peripherals
(23) CC01120 Data Storage Media Manufacturing and Duplicating
(24) CD01020 Manufacturing of Tramway Cars and Components
(25) CD01030 Automobiles and Parts Manufacturing
(26) CE01010 General Instrument Manufacturing
(27) CP01010 Hand Tool Manufacturing
(28) CQ01010 Mold Manufacturing
(29) CR01010 Gas Equipment and Parts Manufacturing
(30) F106010 Wholesale of Ironware
(31) F106020 Wholesale of daily necessities

106

(32) F106030 Mold wholesale
(33) F107200 Chemical raw materials wholesale
(34) F113010 Wholesale of Machinery
(35) F113020 Electrical Appliance Wholesale Industry
(36) F113030 Wholesale of Precision Instruments
(37) F113050 Wholesale of Computing and Business Machinery Equipment
(38) F113070 Wholesale of Telecommunications Equipment
(39) F113110 Wholesale of Batteries
(40) F114030 Wholesale of Motor Vehicle Parts and Supplies
(41) F114080 Wholesale of Tramway Cars and Parts
(42) F115020 Wholesale Ore Industry
(43) F117010 Wholesale of Fire Safety Equipment
(44) F118010 Wholesale of Computer Software
(45) F119010 Wholesale of Electronic Materials
(46) F206010 Retail Sale of Ironware
(47) F206020 Retail Sale of Articles for Daily Use
(48) F206030 Retail Sale of Molds
(49) F207200 Retail Sale of Chemical Raw Materials
(50) F213010 Retail Sale of Household Appliance
(51) F213030 Retail sale of Computing and Business Machinery Equipment
(52) F213040 Retail Sale of Precision Instruments
(53) F213060 Retail of Telecommunications Equipment
(54) F213110 Retail Sale of Batteries
(55) F214030 Retail Sale of Motor Vehicle Parts and Supplies
(56) F214080 Retail Sale of Tramway Cars and Parts
(57) F215020 Mineral Retail Industry
(58) F217010 Fire Safety Equipment Retail
(59) F218010 Retail Sale of Computer Software
(60) F219010 Retail of Electronic Materials
(61) F401010 International Trade Industry
(62) ZZ99999 All business activities that are not prohibited or restricted by law, except those that are subject to special approval.

Business Proportion:

Unit: NT$ 1,000

Year	2024		2025
Division	Amount	%	Amount	%
Automotive Components	2,386,721	49.75%	2,435,414	48.94%
Industrial Application	1,719,842	35.85%	1,652,993	33.22%
Aerospace Components	690,807	14.40%	887,912	17.84%

Total
4,797,370
100.00%
4,976,319
100.00%

Current Products and Services Offered by the Company:

The Company primarily specializes in the production of (1) automotive components, such as safety system, transmission system components and automotive chassis system components, (2) industrial instruments, petrochemical industry components, semiconductor equipment components, bicycle components, and other precision metal components for various industrial applications, and (3) aerospace components, including aircraft and engine components, along with other products.

New Product and Service Development Project

(1) Short-term Plan: Collaborate with customers to develop automotive, industrial, aerospace, and bicycle components; improve the integration of high-value processes such as stamping, forging, casting, and multi-axis composite machining.

(2) Mid-term Plan: Provide integrated processing services, covering a wide range of areas such as front-end steel materials, stamping, forging, casting, machining, milling, multi-axis composite processing, and back-end surface treatment and assembly.

(3) Long-term Plan: Our goal is to integrate upstream and downstream suppliers and continuously improve machine performance. We aim to develop a wider range of processing and assembly capabilities in order to offer our customers more sophisticated and high-value-added products.

(II) Industry Overview

Industry Status and Development:

The Company and its subsidiaries (hereinafter referred to as the Group) are primarily involved in the development, manufacturing, and sales of precision machined metal products for automotive safety systems, transmission systems, chassis systems (including braking mechanisms and steering mechanisms), industrial application components, and aerospace applications. The following provides an overview of the current situation and development in the automotive industry, industrial application industry, and aerospace industry:

(1) Automotive Industry

The automotive industry is the largest manufacturing industry chain in the world today. It is a comprehensive industry with high precision and technicality, involving complex production and manufacturing processes that span across various industries. As a result, the production of vehicles can serve as an industry technology indicator, while the sales or manufacturing quantity can be considered as an economic indicator. The main production process is divided into the following stages: forging, casting, stamping, engine assembly, transmission system and shaft, assembly and painting, chassis beam

and body, final assembly, and inspection and vehicle delivery. The primary product category of the Group necessitates the utilization of high-precision forging technology. This involves altering the shape of metal by applying pressure and employing heat treatment. Additionally, we utilize the casting method to liquefy the metal and inject it into molds to form the desired shape. Once cooled, the molded metal is extracted and transformed into various components such as airbag inflators, engines, and transmission systems.

Automobiles and Parts Manufacturing Process

Source: Automotive Industry Survey Report compiled by KGI Securities, Industrial Technology Research Institute (ITRI) IEK.

When it comes to the distribution channels for automobile component sales, there are two main markets: OEM and ODM for supplying automobile manufacturers, and AM and OES for supplying post-sales maintenance. Taiwanese manufacturers face challenges in entering the international supply chain of major manufacturers due to the strict quality requirements and control of OEM parts. As a result, they primarily target the AM market for collision parts. The Group manufactures OEM Tier 1 customer automotive passive safety components as well as engine and transmission system components. The majority of our exports are to China, Europe, and North America.

A. Global Automotive Market

According to the latest World Economic Outlook released by the International Monetary Fund (IMF), global economic growth is expected to continue at a moderate pace, but the rate of increase will be slower than during the recovery period following the pandemic. The IMF estimated the global economic growth rate to be approximately $3.3\%$ in 2026, up $0.2\%$ from its forecast in October 2025; it projects $3.2\%$ growth for 2027, broadly in line with its mid- and long-term average.

The report points out that the global economy still faces multiple uncertainties, with changes in trade policy being a primary source of risk. This is especially true since the United States adjusted its trade policies and raised tariffs on some imported

109

goods in 2025, thereby increasing uncertainty in the global trading environment. Although the United States has reached agreements with some trade partners, resulting in effective tariff rates falling to around 10% to 20% in most countries, the overall tariff level remains higher than before 2024.

AI investment will boost the economy of the USA and parts of Europe. The IMF projects the Eurozone’s economic growth at 1.3% in 2026, a 0.1 percentage point increase from its forecast in October 2025, primarily due to increased public spending in Germany and strong economic performance in Spain and Ireland. The forecast for the Eurozone economic growth of 1.4% in 2027 remains unchanged.

The US economic growth rate will be 2.4% in 2026, up from the 2.1% predicted in October 2025, largely due to strong growth driven by large-scale investments in AI infrastructure, including data centers, high-performance AI chips, and power supplies. IMF also lowered its 2027 US economic growth forecast by 0.1 percentage point to 2.0%.

IMF also indicated that tech investments are boosting Spanish economic activity, and the country's 2026 GDP growth forecast was revised up by 0.3 percentage points to 2.3%. For the UK, the IMF maintained its 2026 growth forecast at 1.3%. In Japan, the growth forecast for 2026 was slightly adjusted up to 0.7% due to the new government's fiscal stimulus plan. For emerging markets and developing economies, growth is expected to reach 4.2% in 2026, up 0.2 percentage points from the October 2025 forecast. Growth in 2027 is expected to be 4.1%, down 0.1 percentage points from the previous forecast.

IMF has raised its 2025 economic growth forecast for China by 0.2 percentage points to 5%, and also increased its 2026 forecast. The growth forecast for India in 2025 has been significantly adjusted upward by 0.7 percentage points to 7.3%, and the growth rate is expected to stabilize at around 6.4% in 2026 and 2027.

The decline in inflation provides room for policy easing. The IMF expects global inflation to continue to decline, from 4.1% in 2025 to 3.8% in 2026, and further to 3.4% in 2027.

110

《世界经济展望》增长率预测

（实际GDP、年首分数变化）	估计值	预测值
	2025	2026	2027
全球产出	3.3	3.3	3.2
发达经济体	1.7	1.8	1.7
美国	2.1	2.4	2.0
欧元区	1.4	1.3	1.4
德国	0.2	1.1	1.5
法国	0.8	1.0	1.2
意大利	0.5	0.7	0.7
西班牙	2.9	2.3	1.9
日本	1.1	0.7	0.6
美国	1.4	1.3	1.5
加拿大	1.6	1.6	1.9
其他发达经济体	1.8	2.0	2.1
将分布与增加增长总体	4.3	4.2	4.1
亚洲新兴市场和发展中经济体	5.4	5.0	4.8
中国	5.0	4.5	4.0
印度	7.3	6.4	6.4
欧洲新兴市场和发展中经济体	2.0	2.3	2.4
俄罗斯	0.6	0.8	1.0
拉丁美洲和加勒比地区	2.4	2.2	2.7
巴西	2.5	1.6	2.3
墨西哥	0.6	1.5	2.1
中东和中亚	3.7	3.9	4.0
沙特阿拉伯	4.3	4.5	3.6
撒哈拉以南非洲	4.4	4.6	4.6
尼日利亚	4.2	4.4	4.1
南非	1.3	1.4	1.5
各岛屿
新兴市场和中等收入经济体	4.3	4.1	4.1
低收入发展中国家	4.6	5.1	5.1

来源：IRAF,《世界经济展望更新》, 2026年1月。
注释：对于印度，数据和预测值按财政年度95%、2025/26财年（从2025年4月开始）列于2025年一栏。按日历年预测，印度的经济增长率预测值在2026年为6.3%，在2027年为6.5%。

Although 2025 global automotive sales will be affected by reciprocal tariff in the U.S., global new car sales are expected to reach approximately 89.6 to 90.6 million units, a slight increase by 1.8%. China continues to rank No. 1, while Japan has recovered from its vehicle certification issues and is seeing sales growth. The top four brand groups saw a slight increase in market share, with BYD outselling Ford and Geely outselling Honda. Global EV sales may be affected by performance in the fourth quarter of 2025 in the U.S., but driven by net-zero carbon reduction goals in various countries and increasingly affordable prices, growth is forecast to be 12.6%, outperforming the overall car market.

a. Market structure and brand performance

In 2025, we will witness a major reshuffling of the global car market's supply chain and brand rankings. Toyota Group will secure the global sales championship for the sixth consecutive year, with total sales reaching 11.32 million units in 2025. Chinese automakers have significantly increased their global market share. BYD, SAIC Motor, and Geely Holding Group have all entered the top ten in global sales. BYD's sales have surpassed Ford's, and it dominates Tesla in the electric vehicle market. Kia set a new record of global sales exceeding 3.13 million units in 2025.

111

Meanwhile, traditional giants like Nissan are facing significant challenges due to large-scale restructuring and declining market interest.

b. Electric vehicles and the energy transition trend

Despite continued growth in the EV market, shifts are emerging in its power dynamics and regional performance: global new energy vehicle sales are forecast to grow by approximately 14% to 18% in 2025. Due to the impact of the U.S. tariffs and adjustments to subsidies in other countries, growth in Battery Electric Vehicles (BEVs) became sluggish, and the market is shifting towards a balance between gasoline and electric vehicles. Consumption of traditional fuel vehicles remains strong in some areas, supported by favorable policies. Chinese brands have rapidly expanded thanks to their technology and price advantages, forcing European and American car manufacturers to consider closing or selling factories to survive amid overcapacity and high costs.

c. Highlights of the regional market

China: Continue to lead as the world's largest automotive market, with production and sales both exceeding 34.4 million units in 2025 and exports surpassing 7 million units, maintaining its global top ranking for three consecutive years. China not only leads the world in car sales, but is also driving the global shift to electric vehicles. Independent trade analysis shows that by the end of 2025, the Chinese market will account for 38% of global car sales, and EV penetration will remain above 45% to 50% for several months. Chinese manufacturers, led by BYD, have become global leaders in EV production and sales and surpassed Tesla in annual deliveries for the first time.

The U.S.: Electric vehicle sales stagnated or even declined in 2025. This is mainly due to the reduction of federal incentives and consumer preference for larger models. The car market as a whole remains stable, but its electric vehicle market share lags significantly behind China and Europe.

Europe: The European market will become polarized in 2025. Germany remains the largest automotive market in Europe, but growth is sluggish. Total sales in the UK and France both declined. Despite the continuous growth of EV sales in Europe, performance varies significantly from country to country due to differing subsidy policies.

Meanwhile, emerging markets like Brazil and Vietnam are rapidly growing. Brazil saw over 30% sales growth for electric cars, while Vietnam experienced strong percentage growth, indicating that the trend of electrification is accelerating globally.

112

B.Global Automotive Component Industry

a. Ranking one hundred global OEM market component suppliers for 2025, as released by Automotive News. The list ranks suppliers based on their sales to automotive manufacturers, excluding revenue from after-sales services and sales to any companies other than automotive manufacturers. Amidst volatile tariffs and a rapidly changing global trade environment, the rankings have seen significant shifts. Several major parts suppliers have experienced sales declines, primarily due to weakening demand in European and American electric vehicle markets. Meanwhile, the global automotive parts supplier landscape is affected by intensifying competition driven by factors such as electrification, smart technology, and shifts in regional markets.

2025年全球汽车零部件供应商百强榜

(Automotive News发布，爱普搜汽车整理)

2025排名	2024排名	公司国标	公司名称（页）	总部	2024年汽车零部件销售销售额（千元/单元）
1	1	博世	Bosch Group	德国	543.7(f)
2	5	电影	Denso Corp.	日本	479.0(f)
3	3	麦格纳	Magna International Inc.	加拿大	428.36(f)
4	2	采侯学	ZF Friedrichshafen	德国	373.18(f)
5	4	宁德时代	CATL	中国	352.49(fe)
6	6	现代摩瓦斯	Hyundai Mohis	韩国	329.52
7	7	爱信	Aisin Corp.	日本	308.91
8	9	佛瑞亚	FORVIA	法国	282.25(f)
9	8	大陆集团	Continental	德国	264.75(f)
10	10	李尔	Lear Corp.	美国	233.06(f)
11	14	萨玛	Motherson Group	印度	214.96(fe)
12	12	安波磁	Apix	爱尔兰	197.13
13	11	法雷奥	Valco	法国	196.5
14	27	合希勒	Schaeffler	德国	184.94(e)
15	13	住友电工	Sumitomo Electric Industries	日本	182.90(fe)
16	20	矢崎	Yazaki Corp.	日本	172.54(f)
17	15	延锋	Yanfeng International	中国	168.08(f)
18	16	安道拓	Adient	美国	146.88(f)
19	19	日立安斯泰莫	Hitachi Astemo	日本	143.30(fe)
20	21	博格华纳	BorgWarner Inc.	美国	140.86

b. Development trends in the automotive components industry

(a) Traditional giants dominated the market through strategic adjustments.

Bosch (Germany) remains the world's largest supplier, with its automotive business division reporting US$54.372 billion in revenue for 2024, a decrease by nearly 3% year-over-year. This reflects the challenges facing traditional internal combustion engine systems. The company is transitioning to electric and software-defined mobility, and is building partnerships in China focusing on Advanced Driver Assistance Systems (ADAS).

Denso (Japan) ranked second with US$47.9 billion in sales, while Magna (Canada) came in third with US$42.836 billion in sales. ZF (Germany) ranked fourth with US$37.318 billion in sales.

(b) China's suppliers are performing strongly in the key electric vehicle sector.

The fifth place goes to CATL, a new energy battery company from China, with the operating revenue totaling US$35.249 billion. Although it dropped one place from last year, it remains the only Chinese company in the top five.

BYD Electronics and Desay SV are reshaping the infotainment and EV components landscape. Desay SV leads global automotive infotainment system sales, while BYD's vertical integration strategy resulted in the increase by 47% year-on-year in its infotainment market share.

China is still the engine of growth. Despite the fierce price war, parts suppliers have achieved the world's highest operating profit margin. Its EV supply chain (from batteries to smart cockpits) benefits from policy support and export demand.

The parts suppliers in Europe were the hardest hit, mainly due to weak production, overcapacity, and rising labor costs, with pre-tax profit margins of only 3.6% in 2024.

In North America, while improvements to operations among parts manufacturers have shown positive results, the labor shortage is driving up labor costs, and production remains stagnant. These offsetting factors have left profitability largely unchanged.

(d) M&A and strategic alliances

The plan of Motherson Group (India) to acquire Marelli (Japan) could reshape the top 20 rankings and potentially elevate Motherson Group to a global leading position.

Denso (Japan) has further expanded its business in China with a new factory for electric vehicle thermal management and a blockchain-based battery recycling system.

114

(e) Emerging trends are reshaping the industry.

Electrification is driving growth: The proportion of growth from EV components (batteries, motors, and power electronics) has exceeded 60%. Tesla and BYD now produce over 50% of their own battery packs.

Software-defined vehicles: Harman and Panasonic are developing a centralized computing platform for smart cockpits and autonomous driving.

Localization strategy: Bosch and ZF are accelerating their research and development and production in China to meet the demand from automotive manufacturers for cost-effective, technologically advanced solutions.

(f) Major risks and challenges

Stagnant growth in global production: As production stagnates in Europe and North America, China and countries in the Global South will continue to be the engines of growth. However, the overcapacity resulting from global production is expected to be a long-term challenge.

Slow growth of battery electric vehicles (BEVs): The adoption rate of BEVs has been adjusted downward. The cancellation of government subsidies and tax incentives (especially in the EU), coupled with market hesitancy regarding the phasing out of internal combustion engine vehicles and the transition to electric vehicles, has weakened the growth momentum of BEVs. Given this, automakers will focus increasingly on optimizing the cost of battery electric vehicles, balancing the development of models with diverse hybrid powertrains, and using the time gained from the delayed phase-out of internal combustion engine vehicles to continue investing in battery electric vehicle technology.

(g) Changes in geopolitical dynamics

Geopolitical changes will pose a significant impact on the global auto industry, and rising tariff barriers will directly affect the trade of parts and complete vehicles between different regions. The global trade order and the regional industrial chain ecosystem within the core automotive market are beginning to be reshaped.

C. Automobile Safety System

The automotive safety system is divided into two types based on whether it is preventive in nature: active safety (including assistance and warning systems, loss of control prevention) and passive safety (including airbags and pre-tensioned seat belts). Global Tek is the primary supplier of automotive airbag inflator components. Our product range includes the adapter, base, diffuser, and diffuser boss, vital components of airbag modules.

115

Structure of Airbag Inflator

The automotive safety airbag industry is highly concentrated, with a high barrier to entry, resulting in an oligopolistic market. The global manufacturers of safety airbags, such as Autoliv, Joyson, TRW, and Toyota Gosei, are well-known. These four companies collectively hold a market share of over 80%. Both Autoliv and Joyson are significant long-term customers of the group.

According to Precedence Research, the global market size of automotive airbags is projected to grow from approximately $22.56 billion in 2021 to around $42.16 billion in 2030. The compound annual growth rate from 2021 to 2030 is expected to be 7.2%. The rise in traffic accident mortality rates has led to an increased demand for safety equipment, particularly car airbags, in the market. The global automotive airbag market has benefited from the implementation of government safety standards and the anticipated increase in average life expectancy. Additionally, the rise in disposable income has led to increased consumer spending on automotive safety equipment, thereby driving the demand for automotive airbags. The growing consumer awareness of technological advancements in automotive safety systems is a key driver for the growth of the automotive safety airbag market.

Source: www.precedenceresearch.com

D. Automotive chassis system

In 2026, as the global automotive industry enters a key phase in the shift towards "software-defined cars," the car chassis has evolved from a traditional mechanical structure into a highly integrated and intelligent platform. With the combined drive of three trends, electrification, intelligence, and lightweighting, chassis components are poised for a second wave of growth. With the commercialization of high-level autonomous driving (Level 3 and above), chassis-by-wire, as a core component for implementing the autonomous driving execution layer, has transitioned from the technical validation phase to a period of widespread adoption. With its globally leading electric vehicle industry chain, China is accelerating the localization of wire-controlled braking and wire-controlled steering technologies. According to the latest market data and revised forecasts from Global Automotive Research Institute, the penetration rate of wire-controlled braking in Chinese passenger vehicles is expected to surpass 65% in 2026 and reach 95% by 2030. The overall market is rapidly expanding with a compound annual growth rate of over 25%. Meanwhile, chassis lightweighting plays a key role in the competition for range. Whether it is in response to the stringent restrictions on fuel vehicle emissions by environmental protection regulations or the ultimate demand for "weight reduction and range extension" of electric vehicles, aluminum alloy one-body die casting and high-strength precision forgings have become the mainstream on the market. The market space for chassis lightweighting is expected to exceed RMB40 billion in 2026. Since Global Tek Group led the way in the chassis system field in 2021, it has transformed from a single parts supplier into a core strategic partner of Tier 1 suppliers in China and internationally, thanks to its profound knowledge of precision machining and material applications.

(2) Industrial application

The Group primarily manufactures industrial application products such as industrial instruments, semiconductor factory equipment, high-end bicycle suspension systems, and electric bicycle transmission systems. These products are predominantly constructed using materials such as stainless steel, carbon steel, aluminum alloy, copper, and even Teflon. The Group employs processes like wax casting or forging, stamping, and extrusion, along with precision metal machining, to provide the stable source of goods that balances quality and cost for its large-scale global customer base. Driven by the booming tide of AI accelerated computing, Global Tek has teamed up with internationally renowned brands. Leveraging its long-standing experience in precision machining and high-strength materials, Global Tek has collaborated with partners to develop key components for direct liquid cooling (DLC) solutions, including quick connectors (UQD), manifolds, coolant circulation

117

pumps, and specialized parts for medium to large-scale cooling system compressors, helping customers achieve higher performance and secure new business opportunities.

Industrial instrumentation and fluid control are crucial elements of gas and liquid delivery systems. Their purpose is to monitor and regulate the direction, pressure, temperature, and flow rate of fluids in accordance with the pipeline's design and configuration requirements. The downstream application industry is vast, with varying levels of requirements for corrosion resistance or cleanliness depending on the purpose. The primary target customers of our group are global manufacturers involved in oil and gas exploration, pressure control instruments, new energy development, and semiconductor equipment manufacturing. As a result, market demand is closely tied to the growth of the oil and gas and semiconductor industries.

In recent years, there has been an increase in environmental awareness and personal health consciousness. High-end bicycles, including mountain bikes with custom adjustable suspension systems or electric assist devices, have emerged as a popular recreational and leisure option in Europe, America, and other developed countries. Additionally, following the COVID-19 pandemic, they have also become a means of transportation for commuting to work combining the safety and fitness concepts. The requirements for dimensional tolerance and appearance quality of related components are especially crucial for high-end electronic products, in contrast to general machining products. Prominent brands in the industry allocate substantial resources to lightweight design, aesthetic appeal, and fashion. By understanding the needs of end-users, Global Tek has emerged as a key partner for global leading brands.

A. Oil and Gas Industry

Generally, the demand for fluid measurement control and instrumentation equipment is generally correlated with the prices of oil and natural gas, upstream capital expenditures, the number of active drilling rigs, and the number of drilling platforms. However, it is negatively correlated with energy inventories. As there is an increasing concern for energy conservation and carbon reduction, research and development of new energy sources like gray hydrogen and green hydrogen is ongoing. The production, conversion, storage, and monitoring of these new energy sources will continue to heavily rely on various types of fluid measurement control and instrumentation equipment.

According to statistics published by BP, a major British petroleum company, the world's confirmed oil reserves were approximately 1.7324 trillion barrels at the end of 2020. With the discovery of new oil fields and advancements in extraction technology, it is anticipated that oil can be extracted for another 30 to 50 years or even longer. Notably, the development of shale oil extraction technology in North America has expanded the global extractable reserves.

After experiencing the global oil demand freeze caused by the COVID-19 pandemic in 2020 and its subsequent recovery in 2021, as well as the Russia-Ukraine

118

conflict in 2022, the rapid growth of new energy vehicles in 2023, and the increasing focus on ESG issues, human dependence on crude oil continues to rise unaffected by various restrictions. In 2025, upon assuming office, the Trump administration’s first actions included withdrawing from the Paris Climate Agreement, ordering US federal agencies to immediately halt implementation of the Inflation Reduction Act passed under former President Biden (which provided incentives for electric vehicle, wind, solar, hydrogen, and nuclear energy projects), and pledging to increase domestic oil production. Simultaneously, the administration took a strong stance in the Israeli-Palestinian conflict and the Russia-Ukraine war. The international oil price is about USD75 per barrel due to the global oversupply and sluggish demand. In the spring of 2026, the United States launched the “Operation Absolute Resolve,” a military airstrike and ground assault against Venezuela, arresting Venezuelan President Nicolás Maduro Moros and his wife, Cilia Flores, and claiming it would facilitate a transfer of power. Its strong involvement following Israel’s attack on Iran in March also spurred a V-shaped rebound in oil prices from their lows in 2025. Experts even estimated that oil prices could rise to as high as USD150 per barrel in the short term.

According to a report issued by the International Energy Agency (IEA) on March 12, 2026, the Middle East Wars have caused an unprecedented impact on the global oil market. The throughput of the key transportation channel, the Strait of Hormuz, has dropped significantly, almost to a standstill, causing oil-producing countries in the Persian Gulf to drastically reduce production. Global oil supply shrank significantly, and the IEA has comprehensively adjusted its supply growth forecast downward for 2026 from 2.4 million barrels per day to 1.1 million per day. On the demand side, flight cancellations, disruptions to liquefied petroleum gas supplies, and rising global economic uncertainty have led to a downward adjustment of oil demand growth to 640,000 barrels per day. The conflict also forced some refineries in the Middle East to suspend operation, tightening the supply of diesel and jet fuel. In order to stabilize the market, IEA member countries decided to release 400 million barrels of strategic oil reserves to alleviate the impact posed by the supply disruptions on the global economy.

The overall fundamentals tend to be bearish. Nevertheless, the conflict in the Middle East, the political transformation in Venezuela, and uncertainties in major oil-producing regions could still lead to short-term supply disruptions and sharp price volatility. The report indicates that if Venezuela recovers foreign investments and technologies after its political transition, its medium- to long-term output is expected to increase, further intensifying the global supply pressure. Overall, the oil market in 2026 will be caught between oversupply and sudden geopolitical events, leading to frequent short-term price volatility, but facing continued downward pressure in the medium term.

119

Estimating Global Petroleum Inventory, Production, and Consumption Changes

Source: U.S. Energy Information Administration (EIA)

The outlook for global oil extraction in 2026 shows that supply expansion faces multiple geopolitical and market challenges. The US-Iran conflict has led to increased risks in the Middle East's key oil-producing areas. Restrictions on some oil fields and transport routes could increase the potential for short-term supply disruptions. Meanwhile, the stalemate in the Russia-Ukraine war is putting pressure on the stability of oil production and exports in Eurasia, creating uncertainty in the global market. The political situation in Venezuela remains in transition, and the pace of political and economic reforms will directly impact the release of new production capacity and foreign investment. In terms of drilling operations, global demand for land-based drilling rigs is expected to be around 4,200 units, a slight increase year-over-year. New oil wells are concentrated in deepwater and offshore oil fields in South America, Africa, and the Middle East, with deepwater drilling poised to be the primary driver of increased production capacity. The number of shale oil drilling rigs in the U.S. has remained at around 540 to 550, with limited production increases due to capital discipline and oil price volatility. The geopolitical risk might cause short-term price fluctuations, but in terms of the overall supply trend, the global market still has expansion potential. Overall, in 2026, the increase in oil production capacity will primarily be driven by deepwater and emerging areas, with shale oil growth stabilizing. However, supply security and geopolitical risks will continue to be the main factors resulting in the market volatility. Global Tek is a member of the petrochemical and new energy industry supply chain. We have been supplying major components such as specialized pressure gauges, flow meters, fluid control valves, and pipeline connectors to global leading brands. Even in the era of energy

conservation and carbon reduction, the global industrial instrumentation application is expected to gradually shift from traditional petrochemical industries to various new energy solutions. However, the overall demand will continue to grow steadily.

Comparison of Global Oil Production and Demand

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook, March 2026

Source: U.S. Energy Information Administration (EIA)

B. Semiconductor Equipment Industry

Since the semiconductor industry weathered negative impacts such as inventory corrections, delayed investments and layoffs in 2021, it has witnessed explosive growth driven by AI applications. The semiconductor market is inherently cyclical, primarily because it often takes more than two years for new investments in semiconductor manufacturing to move from planning to mass production. As a result, there is frequently a mismatch between demand forecasts at the time of investment and actual market conditions down the line. The rise of new applications, disruptions in the chip supply chain, economic volatility, and geopolitical tensions further complicate efforts to accurately predict supply-demand dynamics. Notwithstanding, the human society's long-term demand for semiconductors is still growing. According to the SEMI (International Semiconductor Industry Association) 2026 report, global silicon wafer shipments will reach 12,973 million square inches (MSI) in 2025, the increase by $5.8\%$ year-over-year, indicating a rebound in demand for advanced processes and AI applications. However, revenue will decline slightly by $1.2\%$ ,

reflecting continued weakness in the traditional applications market. The market shows a "double-track" development: strong demand persists for advanced processes—including those used in AI, logic, and high-frequency memory, while mature processes are gradually recovering, albeit with limited growth. SEMI indicates that advanced materials and manufacturing processes will continue to drive industrial upgrading. As a fundamental material, the stability of the silicon wafer supply chain is critical to the semiconductor ecosystem. The report also analyzes how geopolitical and economic factors affect the industry. The US-China trade dispute continues to put pressure on equipment and materials supply chains, urging companies to diversify their operations and sourcing. Regional conflicts and political instability may also disrupt the global supply chain, particularly the materials and transportation links for advanced processes. As the global core base for wafer foundries, Taiwan's advanced manufacturing capabilities and supply chain synergy give it a critical role in the global semiconductor industry. Any disruption in supply or policy changes could have a domino effect on the global market. In the future, industrial investment and strategies will focus on improving the stability of advanced processes, expanding diversified supply chains, and responding to geopolitical and market volatility risks.

Global wafer manufacturing capacity forecast

Source of Data: PwC

According to IDC's forecast of the top ten trends in the global semiconductor market in 2026, the global semiconductor market will remain in a growth cycle driven by demand for AI infrastructure, data center chips, and memory in 2026, supporting comprehensive expansion across all segments of the industry chain, including chip design, wafer fabrication, advanced packaging and testing. Driven by high-capacity utilization and technological innovation, close collaboration is needed across the supply chain to address the increasing complexity and rapidly evolving demands for chips. Meanwhile, geopolitical factors and international policy competition will continue to shape future industry trends and market volatility.

The global semiconductor market is expected to reach US$890 billion in 2026, with an annual growth rate by approximately 11%, and is accelerating towards a trillion-dollar scale, indicating a shift in the industry recovery to a stage of steady expansion.
Strong demand for AI chips: Continued growth in AI applications is driving overall chip demand, with computing chips forecast to increase by 18% year-on-year. Among the other things, the demand for AI server core chips is growing at the fastest rate.
Growth in IC design in the Asia Pacific region: The IC design market in the Asia Pacific region is expected to grow by 11% annually, with Chinese manufacturers experiencing rapid growth in output value thanks to national policy support. Their market share will expand to around 45%.
Advanced processes are driving wafer foundry growth: Advanced processes (below 4nm) are the primary driver of growth in the wafer foundry market, with overall output value projected to increase by 20%. The leading companies are estimated to hold approximately 73% market share.
Recovery of mature processes: Mature process capacity utilization is expected to stabilize at around 80%, with capacity increasing thanks to demand from AI data centers for high-speed transmission and power management chips.
Supply chain reshaping: Geopolitical factors and international trade policies are reshaping supply chain dynamics. Major economies are accelerating expansion of wafer fabrication capacity, leading to a more distributed supply chain layout.
Growth in the testing and packaging market: The OSAT market is forecast to grow by 11% year-on-year, with advanced packaging leading the way thanks to strong demand from AI chips. The production capacity keeps expanding.
CoWoS advanced packaging expansion: advanced packaging technology (such as CoWoS) is expanding rapidly, with annual production capacity

123

expected to grow by approximately 72% amid strong demand that outstrips supply.

AI server accelerators: The market for AI server accelerators is expected to grow by approximately 78%, making it one of the fastest-growing areas.
Soaring demand in the memory market: High Bandwidth Memory (HBM) and traditional DRAM/NAND Flash are in tight supply due to the expansion of AI and data centers, driving overall market performance and becoming a major growth driver.

In terms of the industry's trends and outlook, the global semiconductor market is expected to continue steady expansion in 2026, with market size potentially exceeding US$1 trillion, representing an annual growth rate of approximately 11%. The growth is driven by three main forces: investments in AI infrastructure, demand for corporate hardware upgrades, and strong demand in the memory and high-performance computing markets. AI chips and high-performance computing remain key growth drivers, with increasing demand for advanced packaging and silicon wafers fueling overall industry advancement. Advanced process technology innovation, including extreme ultraviolet (EUV) lithography and heterogeneous integration packaging, is becoming a key to market competition and determining companies' positions and strategic advantages in the global supply chain. The demand for advanced processes and high-end packaging is strong, while growth in mature processes is limited, and we are also facing price and profit pressures. Geopolitical factors, regional conflicts, and US-China trade dispute continue to impact supply chain stability, prompting companies to diversify sourcing and optimize production capacity to mitigate risks. Taiwan has a global competitive advantage in wafer fabrication, high-end packaging, and design. Its leading technology and stable production capacity make it a core component of the global semiconductor supply chain, with a profound impact on market stability and technological innovation. Overall, the semiconductor market in 2026 will still be primarily driven by demand for AI and high-performance computing, with steady market expansion expected. However, geopolitical risks, supply chain adjustments, and policy uncertainties will continue to cause the global market volatility. Companies will need to balance technological innovation with risk management in their investments and strategic planning to maintain long-term competitiveness.

124

Estimated Global Semiconductor Market Demand from 2024 to 2030

Source: PwC

C. Accelerated water-cooling system for computation

As the demand for computational power for generative AI surges, data center hardware architectures are undergoing an unprecedented "thermal management revolution." Once the thermal design power (TDP) of a single GPU chip officially exceeds 1000W, thermal design is no longer simply a matter of equipment-level considerations and it requires systemic planning from a whole-system energy flow perspective. The cooling cycle of a modern AI liquid-cooled data center is usually divided into three layers:

Layer 1: Facility Circuit is the "main circulation" for the data center. Cooling water is cooled by cooling towers or chiller units on the exterior of the building before entering the main line within the data center. The circuit is responsible for ultimately discharging the waste heat from the entire building into the atmosphere, or recovering and utilizing it.

Layer 2: Secondary circuit is the "medium circulation" within the data center. The cooling distribution unit (CDU) acts as the hub for heat exchange with the facility loop. The coolant in this cycle (usually deionized water or ethylene glycol) flows directly to each AI cabinet to form a closed and clean loop, ensuring the electronic components are not contaminated by the outside world.

Layer 3: Rack circuit is the final "micro-circulation." After the coolant enters the server cabinet, it is distributed to each server node via a manifold, flows through cold plates to directly remove heat from the chips, and then is gathered for reflow.

In the current technology roadmap, air-cooling, immersion liquid-cooling, and direct liquid-cooling (DLC) are the three major pillars. Although air-cooling technology is mature, it struggles to keep up with high-density computing power due to the high energy consumption of fans and the limitations of its heat dissipation efficiency. Immersion liquid cooling was once highly anticipated, but commercial data from 2026 shows that the silicon-based coolant used in it cannot eliminate core

hotspots quickly enough when a single chip exceeds 1000W in power, due to limitations of the Convective Heat Transfer Rate. Further, material compatibility issues caused by long-term immersion, such as electrode corrosion and part swelling, pose a threat to equipment stability. Therefore, direct liquid cooling (DLC) has become the absolute mainstream in current AI data centers due to its precise thermal conductivity path and excellent maintainability.

As soon as the cabinet is connected to the plant's circulating system, the first critical device encountered is the CDU (Cooling Distribution Unit). It is the energy bridge connecting the facility and cabinet sides, acting as both the system's "heart" and "brain." The CDU integrates high-performance heat exchangers, frequency converters, filters, and precision controllers. The importance lies in:

Physical separation and safety: Isolating water from external sources that may contain impurities from the server's sensitive internal tubing prevents blockage.

Dew point control and anti-condensation: the CDU automatically adjusts the cooling liquid temperature based on indoor temperature and humidity to ensure that it remains above the dew point, preventing condensation inside the server that could cause a short circuit.

Precise pressure and flow management: Through VFD control, the CDU can dynamically adjust the flow rate based on the computational load. Increase water flow during peak AI computation and reduce power consumption during idle periods to achieve optimal energy utilization efficiency (PUE).

After exiting the CDU, the coolant enters the precision water distribution system inside the cabinet.

Manifold: Core of flow distribution, typically a pair for supply and return, usually installed vertically at the back of the machine cabinet. Its function is to evenly distribute the large flow of liquid delivered by the CDU to each layer of server nodes. The diameter of the manifold and its branch design are critical. Improper design can lead to excessive server flow near the water inlet, while the remote server overheats due to insufficient flow. The high-quality manifold must be made of precision stainless steel and incorporate internal pressure compensation to ensure that dozens of GPUs within the entire cabinet operate in a consistent temperature environment, preventing performance degradation due to uneven heat distribution in the computing cluster.

Quick Connectors (UQD): Goalkeeper for efficient operation and maintenance, and for controlling flow resistance. UQD (Universal Quick Disconnect) is the most technically advanced connector in direct liquid cooling systems. It is located between the server node and the Manifold, and it is key to enabling hot-plug functionality. The UQD has two main impacts on the system. Leak-proof safety: When servicing a 1000W-class server, UQD must guarantee complete shutoff with no leakage upon disconnection; low flow resistance path: The internal valve structure of UQD creates

126

fluid resistance. In a system equipped with hundreds of connection points, a poorly designed UQD can cause a significant total voltage drop, forcing the CDU pump to run at higher speeds, thereby increasing system energy consumption and reducing component lifespan. Therefore, UQD with fluid-mechanically optimized low flow resistance is essential for stable liquid cooling system operation.

Cold plate: The first line of precision cooling, serving as the final stage of heat transfer. It's directly mounted on the CPU/GPU. There are precise water channels inside to expand the heat dissipation surface area. When fluids flow through these channels, they can absorb thermal energy with extremely high efficiency. For chips exceeding 1000W, the purity of the copper in the water-cooling base and the precision of the etched waterways directly dictate thermal resistance performance. They are core hardware components for managing the heat of leading-edge AI chips.

Looking at the entire plant's cooling cycle down to the small components within the cabinets, CDUs, Manifolds, and UQDs are critical components because they combine physical connection with precise fluid management and safety features. The professional threshold for manufacturers is:

Material mechanical and chemical compatibility: Even minor material incompatibilities between the coolant and metals (copper, stainless steel) or sealing rubber (EPDM) can lead to electrochemical corrosion or oxidative deposits during long-term operation. Once corrosion occurs, it can cause the UQD card to freeze or the manifold to leak. In severe cases, it can block the microchannels of the water block, damaging the GPU, a component worth millions of US dollars. Therefore, manufacturers need to have extensive research data on the properties of metal materials and chemical additives.

Precision processing and welding characteristics: The manifold's long-size precision welding, the water cooling plate's high-density etching, and the UQD's internal precision valve design all place extreme demands on the processing technology. The experienced manufacturers can control the stress and deformation during metal processing to ensure components remain leak-free after years of thermal expansion and contraction cycles.

System-level flow simulation: Excellent suppliers not only sell parts but also possess strong CFD (computational fluid dynamics) capabilities. They can optimize the flow allocation in each pipeline section from a whole-plant cycle perspective, ensuring the system achieves maximum heat dissipation efficiency with minimal energy consumption.

In the competition for AI infrastructure, heat dissipation is no longer a mere accessory, but a core technology indicator. Only suppliers with profound fundamental material mechanics and precision manufacturing experience can ensure data centers strike the optimal balance between peak performance and long-term operational reliability during the shift from "wind to water.

127

Diagram of cooling water system for servers
Source: MEP Middle East

D. Bicycle Industry

Bicycles are a sustainable mode of transportation, whether conventional or electric. With people hesitant to use public transportation due to the increased risk of infection during the COVID-19 pandemic, cycling has emerged as flexible choice delivering the high cost-performance ratio. In addition to commuting needs, many countries still allow outdoor activities during city lockdowns. Cities like Milan, Paris, and London have capitalized on the pandemic to transform their urban landscapes by expanding bicycle lanes and implementing "car-free initiatives". In the United States, several states have gradually enacted legislation to classify electric bicycles as "electric-assist bikes" rather than "electric motorcycles", resulting in more favorable tax rates. There are also no restrictions on entering and exiting national parks and recreational areas. These favorable factors have contributed to the bicycle industry breaking free from its "traditional image" as a conventional industry and emerging as a rising star after 2020. The strong demand has put pressure on all levels of component and bicycle brands, leading to a shortage in supply. However, the high growth dividends brought about by the COVID-19 pandemic have rapidly reversed in the second half of 2022. Even after a three-year adjustment, the inventory levels for some brands and related supply chains still stay high. Compared to the peak during the pandemic, the performance of major well-known brands and component suppliers has generally declined in the recent years. Notwithstanding, the sign of reversal was seen in 2025. For example, the leading derailleur manufacturer Shimano's 2025 sales grew by $4.2\%$ from 2024 (following a $4.9\%$ decline in 2024 and $26\%$ in 2023), ar (following a $26\%$ decrease compared to the previous year in 2023), high-end suspension brand Fox experienced a $0.4\%$ decrease in 2025 compared to 2024 (following a $4.8\%$ decline in 2024 and $42.8\%$ in 2023), Giant Group saw a $15.5\%$ annual decrease (following a $7.4\%$ decline in 2024 and $16.4\%$ in 2023), while Merida

achieved a 9.7% decline (following a 9.1% increase in 2024 and a 26.5% decline in 2023).

According to data from the Department of Statistics, Ministry of Economic Affairs, the historical performance trajectory of Taiwan's bicycle industry shows steady upward growth. In 2013, winter storms in Europe and America caused a decline in sales. In 2016 and 2017, the popularity of shared bicycles led to a boost in the industry. However, in 2020, the global COVID-19 pandemic and subsequent lockdown measures resulted in a delay in high-end bicycle sales, leading to negative growth. Despite these challenges, the industry has shown positive growth in the remaining years. In 2021, with the pandemic stabilizing and the global economy recovering, there has been a rapid increase in demand for electric bicycles and bicycle components in Europe and America. This has resulted in a surge in production value to NT$176.8 billion. In 2022, the total production value of bicycles and components exceeded NT$ 200 billion, with bicycle parts alone accounting for over NT$120 billion. According to customs data, Taiwan's bicycle industry continued to face sluggish export performance in 2024, following a weak recovery year in 2023 after the pandemic. The total number of bicycles exported throughout the year reached 909,800 units, representing a 36% year-on-year decline and falling below the one-million-unit threshold. Total export value stood at USD 1.028 billion, a decrease of 25.68% compared to the previous year. However, the average export unit price increased by 8.19%, reaching USD 1,130.79. Electric bicycle exports in 2024 totaled 363,000 units, a 47% decline from 2023. Export value amounted to USD 672 million, reflecting a 44.6% year-on-year decrease. The average export unit price of electric bicycles reached a new high of USD 1,847.56, marking a 4.55% increase compared to the previous year. Exports of bicycle components also declined, with export volume and value decreasing by 13.61% and 17.46%, respectively, compared to 2023. This reflects the ongoing impact of weakened overall demand and supply chain inventory adjustments over the past two years.

According to a report published by the Taiwan External Trade Development Council in 2026, the structure of Taiwan's bicycle exports in 2025 will show an industrial change trend of "declining traditional bicycle exports, stable electric bicycle exports, and growing component exports." First of all, exports of traditional bicycles declined significantly. The export value totaled US$680 million for the first 11 months of 2025, representing a 27.7% decline from the US$940 million seen in the same period last year. The main markets included the United States, the Netherlands, the United Kingdom, Australia, and China. Among these, the United States and the Netherlands saw declines by 33.2% and 17.3% respectively, while the Chinese market experienced a more significant drop by 72.9%. The main reason for this decline is the rapid shift in consumer demand in the Chinese market towards electric bicycles, which has led to a significant drop in demand for traditional bicycles. Second, the

129

export of electric assisted bicycles remained stable. The export value totaled US$620 million during the first 11 months of 2025, representing a slight growth by 1.2% seen last year. The main markets included the Netherlands, the United States, Germany, the United Kingdom, and Australia, with growth of 14.2% in the Netherlands and 38.2% in Australia. Further, rapid growth in markets such as New Zealand and Mexico indicates that Oceania and Latin America are gradually becoming new emerging markets. Third, the export of bicycle parts and components continues to grow, and is a key pillar of Taiwan's bicycle industry. The export value totaled US$134 million during the first 11 months of 2025, representing an annual growth by 6.5%. The main export products include frames and forks, brakes, rims and spokes, cranksets and derailleurs. Most of these products have shown steady growth in the European and American markets, demonstrating that Taiwan remains highly competitive in mid-to-high end functional components and the global supply chain.

Based on the market research report by Report Ocean, the global bicycle market size is expected to grow from approximately US$21.6 billion in 2021 to approximately US$31.5 billion in 2030, with a compound annual growth rate of approximately 4.9% between 2022 and 2030, indicating a stable growth trend overall.

According to MarketsandMarkets' industry analysis, e-bikes are a major driver of future market growth. The global e-bike market is projected to grow from approximately US$48.7 billion in 2024 to US$71.4 billion in 2030, with a compound annual growth rate of around 6.6%. This growth is primarily fueled by government subsidies, the demand for micro-mobility in urban areas, and advancements in lithium battery technology.

Additionally, according to a research report by Precedence Research, the global e-bike market is expected to be around US$68.3 billion in 2025, reach US$75.4 billion in 2026, and expand to around US$180.2 billion by 2035, with a compound annual growth rate of approximately 10.18% from 2026 to 2035, indicating that electrification and urban green transportation policies will continue to drive market expansion.

130

Estimated Growth of the Global Bicycle Market from 2025 to 2035

Precedence RESEARCH

E-bike Market Size 2025 to 2035 (USD Billion)

Source: Precedence Research

Overall, the global bicycle market is expected to remain in a post-pandemic phase of inventory adjustment and demand stabilization around 2026. However, in the medium to long term, factors such as electrification, urban low-carbon transportation policies, and growing demand for recreational activities will continue to drive expansion in the global bicycle industry, with electric bicycles becoming a key driver of future market development. For the bicycle industry cluster in Taiwan, traditional bicycle exports have declined, but demand for electric bicycles remains stable, and exports of parts and components continue to grow, highlighting Taiwan's important position in the key bicycle components and high-end supply chain. Since 2016, Global Tek has been involved in the bicycle component supply chain. It targets the international market and integrates Taiwan's strong OEM capabilities instead of competing with them directly. It has gained recognition from internationally renowned brand customers for key components such as high-end bicycles, electric bicycles, mountain bikes, and racing bikes, including the suspension system and drive system. The recent development of new customers and new components will further contribute to the Company's sales growth.

(3) Aerospace Industry

Major aircraft and engine manufacturers in Europe and America have implemented a global division of labor and established component supply chain systems. Taking Boeing and Airbus as examples, these manufacturers can be categorized into four tiers. Our group primarily supplies Tier 1 international giants in the industry value chain. Our products include precision metal and mechanical parts

such as primary/secondary flight control system actuators used in A380, A320, B787, A220, and A350 aircraft, as well as heat exchangers for LEAP engines (B737 max, A320 neo, C919), proximity sensors, and VTOL seats.

The global aerospace market continues its recovery and maintains the steady growth. According to the forecasts by the International Air Transport Association (IATA), net profits in the global airline industry will be about US$36.6 billion in 2025, with a net profit margin of about 3.6%. Global passenger volume is expected to reach approximately 5.2 billion in 2025, with an annual increase by about 6.7%. Cargo volume is expected to be approximately 72.5 million tons, with an annual increase by about 5.8%, indicating that air transportation demand has recovered and is continuing to grow.

For aircraft manufacturers, the global commercial aircraft market is still dominated by the two major manufacturers, Boeing and Airbus. By the end of 2025, the combined backlog of commercial aircraft orders for both companies will reach nearly 15,000 units; specifically, Airbus owned approximately 8,700 units and Boeing owned 6,000 units, indicating continued strong demand for airline fleet renewal and expansion. Throughout 2025, Airbus delivered approximately 793 commercial aircraft, while Boeing's deliveries rose to about 600 aircraft. Looking foward to 2026, Airbus plans to deliver approximately 870 aircraft, while the market widely anticipate Boeing's deliveries to rise to over 650 aircraft.

In terms of main model capacity planning, the production rate for Boeing 737 MAX is approximately 38 to 42 aircraft per month currently, with a long-term plan to gradually increase to over 47 aircraft per month. For the time being, about 5 units of 787 Dreamliner are produced per month. The future goal is to gradually increase the production rate as 10 aircraft per month. For Airbus, the A220 production rate is expected to increase to approximately 14 units per month in 2026. The A320 family is planned to increase to approximately 75 units per month by 2027, while the long-term goal for the A350 is to increase to 12 units per month by 2028.

In terms of the global aerospace supply chain, Asia has gradually become an important manufacturing and component supply base in recent years. As aircraft manufacturers continue to increase production capacity and promote supply chain diversification, the importance of Asian suppliers in areas such as structural part manufacturing, precision machining, composite materials, and electronic systems continues to grow. Taiwan, Japan, South Korea and Southeast Asia, in particular, are gradually playing a more critical role in the global aerospace supply chain, leveraging their mature manufacturing capabilities and comprehensive electronics and mechanical industry foundations. As major manufacturers continue to ramp up narrow-body aircraft production in the coming years, demand across the related supply chain will also rise. Aerospace component manufacturers in Asia are well-positioned to benefit from this long-term industry growth.

132

Overall, the global air transportation demand has continued to grow, fueled by the recovery of tourism and business activities, and airlines are continuing to update their fleets to improve fuel efficiency and reduce carbon emissions. The global air transportation demand is expected to maintain an annual average growth by approximately $3\%$ to $4\%$ over the next ten to twenty years. In the short term, however, engine availability, aerospace component capacity, and supply chain stability will be key factors affecting aircraft production and delivery. Given this, the long-term demand outlook for the aerospace industry remains strong, and related supply chain companies are also expected to benefit from overall industry growth.

According to Airbus's latest Global Market Forecast, the global aviation market is expected to see demand for approximately 43,420 additional passenger and cargo aircraft over the next 20 years, with about $56\%$ driven by market growth and about $44\%$ by fleet replacement. The global aircraft fleet is expected to grow from approximately 24,700 to nearly 50,000 units, demonstrating sustained long-term growth in air travel demand.

Source: Airbus Global Market Forecast (2025-2044)

2. Interrelationship of Industries: Upstream, Midstream, and Downstream

The Group is a Tier 1 supplier of precision metal machining components for the automotive, industrial, and aerospace sectors. The upstream of the industry supply chain consists of machine-cut raw materials and the associated production equipment. Procurement involves various types of metal bars, including stainless steel, carbon steel, aluminum, titanium alloy, special alloy steel, and other metal bars, as well as stamping parts, forging parts, and precision casting parts. The Company's product portfolio includes

automotive safety components, transmission system components, braking system components, industrial instruments, semiconductors, high-end bicycles, electric bicycle components, and aerospace components. These products are part of the middle stream of the industry supply chain. The Company's customer base consists of international Tier 1 giants in various industries, who offer a diverse range of products. The correlation between the upstream, midstream, and downstream of the industry supply chain is as follows:

Various trends and the competitive situation of products:

(1) Various trends of products:

A. Global Automotive Market

Overall, the global car market in 2026 is expected to see a steady recovery, driven by electrification, with accelerating smart features, China taking the lead, and regional variations. Despite pressure from trade policy adjustments, new energy vehicles will remain a core growth driver, with the retail penetration rate of new energy passenger cars in China expected to continue rising through 2026. The "Business research insights" estimates that the global automotive market scale will reach US$4,908.49 billion in 2026 and will increase to US$8,570.08 billion by 2035, with a compound annual growth rate (CAGR) of 6.39% from 2026 to 2035.

Car exports from China are expected to reach 6.58 million units in 2026. Chinese brands have shown strong performance, with market shares of 39.1%, 47.34%, and 24.6% in Israel, Thailand, and Australia, respectively, surpassing Japanese brands to become the largest source of cars in those markets.

As the core automotive market in North America, the United States is forecast to see sales of approximately 16.2 million vehicles in 2026, a year-over-year increase by only 0.8%, indicating sluggish growth. The penetration rate of new energy vehicles is 38%, but sales of BEVs fell by 34% year-on-year in January 2026, mainly due to declining subsidies, high tariffs, and inflationary pressure.

Driven by policies, the European automotive market has become one of the regions with the highest EV penetration rates globally. Total sales for 2026 are expected to reach 19.2 million units, the increase by 7.3% year-over-year, with a new

134

energy vehicle penetration rate of 49%, leading the world. The market primarily consists of battery electric and plug-in hybrid models, and countries like Germany, France and Norway have particularly stringent policies related to electrification.

The Japanese auto market is dominated by hybrid models, and the transition to EVs is relatively slow. The annual sales are expected to be around 5.2 million units in 2026, the slight decrease year-over-year. Korean auto market benefits from strengths in both electrification and exports, but also faces intense competition from Chinese brands. The annual sales for 2026 are projected to reach approximately 3.8 million units, the increase by 14% year-over-year, with new energy vehicles accounting for around 40% of the market. Battery electric models from the two major domestic automakers, Hyundai and Kia, are highly competitive globally. As an emerging representative of growth in the global auto market, India market focuses on small cars and hybrid models dominating sales. The annual sales for 2026 are expected to reach approximately 5.5 million units, the increase by 5% year-over-year.

The Southeast Asian auto market is currently dominated by fuel-powered vehicles, yet the rise of Chinese brands has become a significant trend. The annual sales for 2026 are projected to be 8.8 million units, the increase by 15.3% year-over-year, with the core market focused on Thailand, Indonesia and Vietnam. In the future, the electrification of the Southeast Asian auto market will gradually gain momentum. Relevant supporting policies will be continuously refined, and Chinese brands will continue to expand their market layout in the region by capitalizing on their cost-effectiveness and strengths in the new energy sector.

Latin America is one of the fastest-growing automotive markets globally. While currently dominated by internal combustion engine vehicles, the transition to electric vehicles is still in its early stages. Total sales for 2026 are projected to reach 6.5 million units, the increase by 13.8% year-over-year, with Brazil and Mexico as the key markets. In the future, the Latin American automotive market is expected to continue growing as the economy recovers. Policies related to electrification will be gradually rolled out, intensifying market competition. Chinese brands are expected to further expand their market influence.

135

B. Global Automotive Component Industry

2026, the global auto components industry is undergoing its most significant structural shift yet, transitioning from a traditional mechanical focus to a dual path of electrification and intelligent technology. As the global penetration rate of new energy vehicles nears $50\%$ , the production value of traditional internal combustion engine components like transmissions and fuel systems continues to decline, giving way to batteries, motors, and electronic control systems, the "three-electric" system, which now represent the core of vehicle costs. Particularly in 2026, the small-scale commercialization of solid-state battery technology and the widespread adoption of high-nickel, low-cobalt batteries will drive technological innovation in related materials and thermal management system supply chains. Thermal management components, owing to the extremely high precision control requirements of electric vehicles, will become one of the fastest-growing segments in the components market.

The intelligent technology is driving explosive growth in demand for sensors and computing platforms. In 2026, with high-end smart driving solutions becoming available in more affordable vehicles, shipments of LiDAR, high-definition cameras, and ultrasonic sensors are expected to increase significantly, pushing the proportion of automotive electronics to over $40\%$ of total vehicle cost. Meanwhile, the trend toward software-defined vehicles (SDVs) is driving component suppliers to evolve from simple hardware assemblers to integrated "hardware + software" solution providers. This development makes automotive chips and domain controllers critical for supply chain resilience, and regionalization policies are further shaping the global chip supply chain into more localized networks.

Under the changing global trade environment, the geographical distribution of the parts and components industry is clearly regionalizing. With its economic scale and rapid pace of technological innovation, the Chinese supply chain is shifting from simply exporting parts to establishing localized production bases in Europe and Southeast Asia to avoid tariff barriers and be closer to end markets. Meanwhile, under the framework of the USMCA, the North American market compelled parts

manufacturers to accelerate a shift of production to North America, resulting in three major regional supply circles centered on China, Europe, and North America. 2026 will also be a year of significant industry consolidation. Traditional small and medium-sized suppliers unable to keep pace with digital transformation and green supply chain demands are being rapidly acquired by large multinational corporations or tech giants entering the market.

C. Automobile Safety System Market

Asia Pacific remains the largest region in the global automotive airbag market, primarily fueled by demand from key automotive production countries such as China, India, and Japan. As governments continue to enhance vehicle safety regulations (e.g., India's push to mandate six airbags in passenger vehicles), coupled with upgrades to overall vehicle safety features, the demand for airbags continues to increase. The North American market has continued to grow steadily. Thanks to mature vehicle safety standards and high safety awareness in the U.S., vehicles are generally equipped with multiple airbags, making the U.S. a key global consumer market for airbags. Further, as sales of electric vehicles and SUVs increase, automakers are continuously incorporating multiple airbag systems, including side airbags, curtain airbags, and knee airbags, to enhance occupant protection and further drive long-term growth in the global automotive safety airbag market.

D. Industrial applications in the oil and gas industry

Multiple geopolitical crises will result in extreme turmoil in the global energy landscape in 2026. The ongoing Russia-Ukraine war has led to limited Russian energy production. The escalating conflict between the U.S., Israel, and Iran threatens the Hormuz Strait shipping lane, causing panic over supply disruptions and pushing Brent crude oil above $120 a barrel; despite political changes in Venezuela aimed at re-entering the market, its output remains limited due to aging infrastructure. Although high oil prices are encouraging short-term investment in upstream extraction, extreme price volatility and carbon reduction regulations are leading to more cautious long-term capital spending. Funds are accelerating their shift from traditional oil fields to carbon capture and low-carbon technologies. The petrochemical industry was squeezed by high raw material costs and slowing demand, driving profit margins to historic lows and forcing companies to reduce traditional capacity expansion while increasing investment in high-value specialty chemicals and the circular economy. In the short term, geopolitical factors will continue to support high oil prices, but in the long run, the energy transition and saturated demand in non-OECD countries pose a risk over structural decline.

137

E. Industrial Applications - Semiconductor Equipment and Factory Construction Market

The global semiconductor market is expected to surpass US$760 billion in 2026, as the industry enters a super-growth cycle led by “AI infrastructure.” The data center has become a core growth engine. Over 50% of chip demand now originates from large cloud service providers (CSPs) building out generative AI capabilities, with investment shifting from general-purpose compute acceleration to custom ASICs and high-performance GPUs. Driven by this momentum, the semiconductor equipment market is expected to reach a record US$138 billion, with primary investment going towards advanced processes (2nm/3nm) and HBM high-bandwidth memory production capacity. The investment trend shows a significant increase in demand for liquid cooling systems and high-efficiency power infrastructure in data centers, driven by the challenge of single chips exceeding kilowatt power consumption levels. Despite geopolitical factors driving countries to seek supply chain independence, capital expenditure by leading foundries like TSMC will remain high (around US$54 billion) amid the AI computing power race, reflecting strong market confidence in the long-term commercialization of AI.

F. Industrial Applications - Bicycle Industry

The global bicycle market in 2026 will emerge from the shadow of inventory adjustments and see a structural recovery. The traditional bicycle market is mature and stable. The annual compound growth rate (CAGR) from 2024 to 2026 is expected to remain between 3% and 5%, with demand primarily focused on mid- and low-end commuter bikes and developing markets. In contrast, e-bikes will demonstrate strong growth momentum, with a CAGR expected to reach 10% to 12%, and will be a key driver of production value growth. In terms of technology trends, E-bikes are moving toward lightweight motors, mid-drive systems, and smart IoT integration to improve the efficiency of urban commuting and freight transportation (Cargo Bikes). Even though geopolitical tariff challenges remain, global manufacturers’ gross profit margins will increase significantly as inventory is cleared. The focus of enterprise competition will shift from simple capacity expansion to higher-priced smart models and building an after-sales maintenance ecosystem.

G. Aerospace Components Industry

The future development of the aerospace industry is primarily driven by changes in the global total revenue passenger kilometers (RPK) of air transport. It is projected that the global RPK will reach US$16.5 trillion by 2036. The forecast for new aircraft demand primarily comes from orders for single-aisle passenger planes, indicating that high-performance new-generation small and medium-sized aircraft will become a trend in the aviation passenger transportation industry. CFM, a global engine manufacturer, is currently undergoing a transition in engine generation, replacing the

138

current CFM56 with the LEAP engine. This upgrade will enhance fuel efficiency by 15% and reduce engine weight by 25%. In the future, the LEAP engine will become the preferred option for single-aisle aircraft, resulting in a simultaneous increase in demand for related components.

(2) Product Competition:

A. Airbag components

For international automotive airbag inflator manufacturers, the primary considerations are supplier product stability, reliability, and delivery efficiency. High-standard safety international manufacturers place great emphasis on stable machining raw material quality, which is a key factor. Global Tek, in collaboration with domestic raw material suppliers, has developed strategically certified steel. Unlike competitors who import steel from abroad, Global Tek enjoys a cost advantage and has control over the delivery time of raw materials. Furthermore, the group enhances supply chain management by integrating with the procurement and delivery systems of key customers, enabling them to promptly track customer deliveries. This enables the group to swiftly adapt to changes in customer demands and foster customer loyalty. After KSS acquired the Takata airbag explosion incident, the industry as a whole has become more consolidated. This has led to a more conservative approach in the development of new technologies and materials, resulting in increased barriers for potential competitors to enter.

B. Transmission Components

Amidst the global automotive drivetrain transformation in 2026, the transmission components industry has evolved into a competitive landscape characterized by high technical barriers and robust supply chain resilience. Based on the stringent requirements for driving safety and power efficiency, original parts must undergo an extremely precise certification process. This process, from qualification review and durability verification to the delivery of mass production samples, often takes years and involves substantial research, development, and testing costs. This makes suppliers with high-end precision machining and automotive-grade quality control capabilities indispensable strategic partners for Tier 1 manufacturers in the era of electrification.

As the penetration rate of EVs increases significantly, while the transmission system is structurally simpler, the demands on machining precision for high rotational speeds, low noise (NVH), and high torque density are becoming increasingly stringent. Under such intense technological pressure, a tighter strategic alliance formed throughout the industrial chain, and core components are largely monopolized by a small number of suppliers with a proven track record. For Tier 1 suppliers, switching suppliers not only carries the risk of convincing the original equipment manufacturer (OEM) to re-certify them, but also involves significant time and cost for production

139

line debugging and adjustment. Under the current global emphasis on supply chain security and regional localization, existing suppliers have built strong competitive advantages through prior certification and accumulated expertise in process parameters, making it difficult for potential entrants to overcome the barriers of cost and trust.

C. Industrial application components

The main industrial application products include industrial instruments, semiconductor process equipment, high-purity electronic gas transport pressure flow control units, liquid cooling solutions for data centers and key components of high-end bicycles and electric bicycles. The work piece surface requires high cleanliness, corrosion resistance, and surface smoothness, and the product has a long life cycle. The challenge lies in meeting customers' demands for short development lead times and immediate mass production, while also achieving precise dimensional tolerance control and flexible production line capacity allocation. Furthermore, there's a need to modify machining processes or product dimensions according to customer design changes at any time. Quality and production stability requirements are relatively strict as well. Industrial application components frequently utilize raw materials that are produced through wax casting, die casting, or forging, or they directly employ metal bar stock. These materials undergo several stages of precision machining to manufacture the final parts. The key features of these components include customization, a wide range of materials, and intricate processes. As a result, a thorough understanding of material properties and process control is essential for efficient mass production. Global Tek is one of the few companies in Taiwan that has a precision investment casting production line and combines it with advanced precision machining technology. They have successfully developed the ring-shaped wave pattern process for Emerson Group, establishing themselves as the preferred supplier of precision investment castings in the Asian region. The Group is also the supplier for globally renowned leading brands in the semiconductor and electric bicycle industries. It possesses comprehensive processing, assembly, and testing integration capabilities. Due to the high initial investment amount and the need for years of accumulated processes, there are entry barriers. Therefore, the Group holds a crucial position in the supply chains of various related industries.

D. Aerospace Components

Due to the highly complex nature of engine manufacturing and zero-component supply, it requires high precision technology and strict testing and certification from international major manufacturers. The products manufactured by Global Tek are indispensable components in engines, all of which are customized products. Customers, based on the requirement for zero defects in quality, rely on qualified suppliers with whom they have long-term partnerships. Our group has long-term

140

supply relationships with major international Tier 1 manufacturers. This is because our quality, technology, and professional services have been highly recognized, making us more competitive than other related industry players. Therefore, the likelihood of substitution in our supply chain is relatively low.

(III) Technical and research & development overview

Technical Level, R&D of the Business

(1) Technical Level

Global Tek is a manufacturer specializing in precision metal parts processing, offering integrated services to its customers. The Company utilizes various cutting-edge technologies such as precision computer-controlled lathes, milling machines, lathe-milling compound machines, multi-axis machining lathes, grinding machines, and surface treatment for precision process development. In addition to continuously advancing its core precision machining technology, Global Tek actively pursues production intelligence and equipment automation to contribute to large-scale development projects in the automotive industry. The Company aims to consider process requirements during the early stages of product design, providing customers with cost optimization, stable quality, and a wide range of product options. Furthermore, the group has strengthened and integrated production automation to enhance efficiency, accelerate new product development, and improve overall market competitiveness.

(2) R&D

In order to meet the industry's need for prompt customer response, our research and development efforts are focused on enhancing feasibility assessment, production and delivery efficiency, creating product differentiation, and improving market competitiveness in terms of safety and reliability. We give priority to advanced production management technology and the development of high-value-added products.

A. Promoting intelligent manufacturing management

Siemens UG CNC Simulation and machining process operations are fully implemented in conjunction with MES to develop various application software, such as production management, intelligent monitoring, and tool management, to optimize the processing efficiency of CNC machine tools. The information from various machines on the production line is aggregated to the cloud platform, enabling engineers to instantly grasp equipment status, collect production data for in-depth analysis, and thereby reduce development time, improve trial efficiency, accelerate quotation speed, and enhance work piece machining accuracy. Additionally, a strategic supplier is closely integrated with the group's supply chain to provide customers with rapid service.

141

B. Providing one-stop service to aerospace component customers

Integrate crucial processes for aerospace components, such as front-end material forming, precision machining, and NADCAP surface treatment special processes, including hard anodizing and other processing procedures, as well as surface treatment and post-grinding. Additionally, incorporate assembly and functional testing to minimize external failure costs and enhance product reliability and profitability.

C. Enhancing process technology to increase the added value of products

a. We continuously introduce a comprehensive range of cleanliness testing equipment to meet the requirements of various industries, including oil and gas, petrochemicals, liquefied and gaseous substances, food, medical, semiconductor, optoelectronics, and solar energy. Our goal is to enhance the added value of our products.
b. Automated inspection of the pulley of the power generator coupling damping device.
c. Implementing automated inspection for the rear cover of the camshaft.
d. Continuously introduce semi-finished products into the in-house micro-assembly line.

Research and development personnel and their academic and professional experience

December 31, 2025; Unit: people

Education	Number of individuals	Percentage (%)
Master's degree or higher	15	11.7
University	62	48.4
Associate's degree	40	31.3
High (vocational) school	11	8.6
Total	128	100.0

The research and development expenses incurred during the most recent fiscal year and up to the date of printing of the annual report.

Unit: NTD Thousand

Item	2025
Research and Development Fees	191,122
Net Operating Revenue	4,976,319
Proportion of net revenue	3.84%

Recently developed successful technologies or products up to the date of the annual report's printing

Year	Projects or achievements
2025	1. Developing components for dental surgical equipment.
2. Developing components for IC packaging and testing connectors.
3. Developing specialized welding and assembly processes for high-end pressure gauges.
4. Developing components and assembly testing processes for intelligent drive integration systems.
5. Developing chassis rear wheel steering components.
6. Developing key components of active suspension system.
7. Developing components for chassis solenoid valve.
8. Developing components for airbag gas generator.
9. Developing components of steering system.
10. Developing components for new energy vehicle charging systems.
11. Developing components for thermal management system.
12. Developing components for braking system.
13. Developing components for AI server thermal management system.
14. Developing components for robot joint module.
January to February 2026	1. Developing components for suspension system solenoid valve.
2. Developing components for airbag gas generator.

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

Short-term development plan

(1) Expanding opportunities in the automotive airbag system sector

A. Increase the penetration rate of airbag inflator products outside the US market, and deepen cooperation with procurement departments of key customers in regions other than the US.

B. Entering the supply chain of international automotive giants for the development of active safety systems, such as Automatic Emergency Braking (AEB) and hydraulic control system components.

(2) Developing high-value-added products through early involvement in customer material and process research and development work.

A. Developing key components for EPS (Electric Power Steering) systems, such as input shafts, intermediate shafts, and other related products.

B. Developing key components for braking and air suspension systems

C. Develop deep drawing cans for stamping products.

D. Developing hydraulic control system components for engine-assisted braking systems.

E. Continuing to develop key components such as damping belt tensioner shafts for traditional and hybrid powertrain systems, OAD (Overrunning Alternator Decoupler) shafts for generator coupling damping devices, and other critical components for crankshaft damping shafts.

F. Continuing to develop precision stainless steel gear processing techniques and introducing components for patented bicycle belt drive systems to existing customers.

G. Developing key components for pressure and flow sensors in the new energy industry.

(3) Developing precision machined metal components applicable to new energy vehicles and autonomous driving technology.

(4) Develop key components for car pressure sensors.

(5) Developing key components for medical equipment.

(6) Developing key components for optical products.

(7) Continue developing key components for high-end instrumentation in the petrochemical industry, as well as providing integrated turnkey solutions for component assembly and testing.

(8) Developing critical components for semiconductor fabrication and packaging/testing equipment.

(9) Enhance comprehensive development capabilities for high-end server water-cooling system components, including design, machining, and assembly testing.

Long-term development plan

(1) Reduce the proportion of low-value-added metal components, increase high-value-added products in automotive, bicycle, industrial applications, semiconductor equipment, aerospace, and high-tech products.

(2) Integrate internal resources within the Company to automate processes and inspections, replacing labor-intensive tasks.

(3) Vertical integration of key processes, strengthening capabilities and equipment investment in front-end materials and back-end surface treatment, reducing external failure cost risks to improve profitability.

(4) Talent development combined with colleagues' identification with Company culture, in the future, will continue to focus on consolidating colleagues' cohesion, enhancing colleagues' sense of identification with Company culture and future development, as well as cultivating a value of mutual prosperity. Leveraging the strengths of each colleague, this will make the Company's decision-making and output more efficient.

144

(5) Improve transparency, enhance external oversight measures, solidify internal governance, and through the disclosure of information and financial statements, allow the market and investors to understand the Company's management philosophy, operational direction, and financial health. This enables feedback from the market and investors, increases external oversight measures, strengthens the Company's foundation, and promotes healthy financial and business development.

II. Analysis of Market and Production and Marketing Situation

(I) Market Analysis

The main product sales regions:

Unit: NTD Thousand; %

Sales regions	2024		2025
		Amount	Proportion	Amount	Proportion
Taiwan		200,077	4.17%	238,681	4.80%
Export	Asia	2,179,919	45.44%	2,348,810	47.20%
	America	1,655,178	34.50%	1,745,668	35.08%
	Europe	762,196	15.89%	643,160	12.92%
	Other	0	0.00%	0	0.00%
	Subtotal	4,597,293	95.83%	4,737,638	95.20%
Total		4,797,370	100.00%	4,976,319	100.00%

Market share:

The Group is a professional precision metal parts processing manufacturer. The automotive components, industrial applications, and aerospace components produced by the group are all customized products with small quantities and diverse varieties, making it difficult to separately calculate market share for these three types of products. Since its establishment, the Group has always adhered to the customer service concept and continuously collaborated with leading international brands in the industry to develop and grow together. As a result, the revenue has shown a year-on-year growth trend. Given the continuous growth in niche product demands such as automotive components, bicycle components, and aerospace components, the Group still has significant room for revenue growth in the future.

Future supply and demand conditions and growth prospects of the market

(1) Automotive Industry

A. Demand side

The demand for the global auto market in 2026 is undergoing a structural shift. Although the global economy is on a steady recovery path, consumer behavior is being profoundly driven by both “electrification first” and “intelligent experience.” New energy vehicles are no longer simply a result of policy, but are becoming a core driver of market growth thanks to maturing technology and the increasing availability of charging infrastructure. Global demand now accounts for nearly 50%. With leading brand influence and technological advantages, China's exports continue to hit record highs, successfully extending its competitiveness to emerging markets like Europe and ASEAN, and boosting growth in the global industry. Notwithstanding, regional trade barriers, interest rate fluctuations, and the strong demand for value-for-money products in emerging markets have resulted in a clear tiered distribution of demand. Automotive companies must more accurately align product positioning with diverse consumer preferences.

B. Supply side

In terms of supply, the global automotive industry is accelerating its shift from traditional manufacturing to a digital ecosystem centered around software-defined vehicles (SDVs). Major car companies are not only investing heavily in new energy production capacity, but are also shifting their production layouts from a focus on low cost to regional distribution centered on supply chain resilience, in order to reduce geopolitical risks and improve delivery efficiency. The auto parts supply chain is facing an unprecedented "big shakeup." Large suppliers with key technologies in electrification, smart cockpit development, and efficient thermal management systems are gaining market leverage through continuous mergers and acquisitions and technological integration. Instead, traditional mechanical component manufacturers that are slow to transform are facing accelerated elimination. Further, the relationship between vehicle manufacturers and suppliers has evolved into a deep strategic collaboration. Digital management platforms are used to optimize inventory and R&D efficiency, enabling faster intelligent upgrades of vehicle models to meet market demand for enhanced performance and connectivity.

146

(2)Industrial application

A. Demand side

Industrial instrumentation applications include stainless steel industrial instruments, as well as industrial pipeline accessories such as pipe fittings. They have a wide range of applications, including petroleum refining and production, oil and gas transportation, chemical industry, water treatment, power generation, commercial buildings, food, and medical industries. Due to similar processes, these applications are also used in the semiconductor and optoelectronics industries. Currently, the major demand comes from the oil and gas industry and the semiconductor equipment industry. For parts suppliers in this industry, the level of capital expenditure by upstream manufacturers will impact the future demand for related equipment. The development and application of new energy also rely on various types of industrial instruments for management and monitoring. Amidst the short-term impacts of the trade war and US-Iran wars, the market is expected to return to its previous moderate upward trend in 2026, following a short-term pullback. Following inventory corrections in the second half of 2023 and the robust development of AI-related industries in 2024, investments in new wafer fabs, new equipment, and the establishment of cloud computing centers in various countries increased significantly. As a result, overall demand in 2026 will surpass that of 2025 apparently. Regarding the high-end bicycle and electric bicycle industry that the Group has recently entered, it is expected that the Group will get rid of the market inventory clearance in the first half of 2026, and that in the second half of the year, as new products enter mass production, the industry will experience a positive growth trajectory. Global Tek has successfully become part of the supply chain for multiple global leading brands, and as the customer market share expands in the end market, Global Tek's share of customer supply will also increase year by year, ensuring continued strong market growth.

B. Supply side

Generally, industrial instruments and semiconductor products have a lifespan of over ten years. High-end bicycles and electric bicycles prioritize high performance and added value, and AI water cooling equipment requires extremely high precision, water density of assembly and reliability. This leads to increased challenges in material selection, design, and processing, as well as more complex procedures. Therefore, in the future, only manufacturers with the experience in cooperation in design and development, comprehensive processing capabilities and significant investments will be able to meet these requirements. Our group plans to reduce the proportion of investment in self-owned equipment by adopting a cooperative operating model with suppliers. Instead, we will allocate resources to

147

material selection and process development, enabling us to provide industrial instrument customers with competitive integrated services.

(3) Aerospace Industry

A. Demand side

The future development of the aerospace industry is primarily driven by the steady growth of the global total revenue passenger kilometers (RPK) of air transport. It is anticipated that global RPK will double between 2043 and 2044 compared to current levels, reflecting the resilience of global tourism demand. The growth momentum mainly comes from passenger growth in emerging economies (especially Asia and the Middle East). It is expected that by 2040, more than 80% of global population growth and new air demand will be concentrated in these regions. Taking the Chinese market as an example, its per capita flight frequency is expected to continue rising, making it the world's largest single aviation market and putting it on par with mature markets like the US.

In terms of the fleet size, the global number of commercial aircraft is expected to grow by approximately 3.5% to 4% at the beginning of 2025 compared to 2024, signaling a full recovery of the aviation industry from the pandemic and its entry into a period of expansion. According to the latest long-term forecast by Boeing and Airbus, the total number of global commercial aircraft is expected to increase from the current approximately 29,000 to between 48,000 and 50,000 by 2043.

Driven by the expansion of low-cost carriers (LCC) and the booming regional air networks, about 71% to 76% of new aircraft deliveries are for single-aisle aircraft (narrow-body aircraft). This reflects the fact that market demand continues to favor small and medium-sized passenger aircraft with high fuel efficiency and flexibility to support more frequent short- and medium-haul route demands.

B. Supply side

Enhancing engine fuel efficiency, reducing emissions, and other environmental considerations are the main focus of Tier 1 engine manufacturers. Approximately 72% of single-aisle aircraft are equipped with CFM's Leap engines. By the end of 2025, CFM's backlog remained high at over 10,000 units. The annual production volume of Leap engines is expected to reach 2,100 to 2,200 units in 2026, doubling production during the pandemic and boosting revenue for suppliers. In terms of Taiwan's aerospace policy, domestic aerospace industry leaders are promoting Taiwan's aerospace industry A-Team 4.0 with assistance from the Chung-Shan Institute of Science and Technology (CSIST). The initiative focuses on four major sectors: raw materials, machine tools, engine components, and logistics, aiming to attract manufacturers to participate. With support and guidance from leading aerospace companies, manufacturers can obtain the necessary

148

aerospace certifications based on their own strengths, enter the international aerospace industry chain, and create an industrial cluster effect.

4. Competitive Niche:

(1) High proficiency in key machining materials

The raw materials for the airbag gas generator components of this Group are mainly clean steel jointly developed with China Steel, and they have passed customer certification for sales. Compared to other competitors whose supply sources are primarily from Europe, the United States, or Japan, our group has a greater level of control over the delivery time, quantity, cost, and inventory management of key raw materials. This allows us to promptly meet the evolving demands of our customers and maintain stable orders.

(2) Leading quality

Due to long-term engagement with top-tier Tier 1 automotive, industrial instrument, semiconductor, high-end bicycle and aerospace customers worldwide, this group has developed capabilities in self-developed automated inspection and specialized production process equipment. It holds dozens of patents for specialized equipment and has successively obtained international automotive quality certifications such as IATF16949, BSI QS 9000, ISO14000, aerospace industry NADCAP, and international aerospace AS9100, PED and ISO13485, among others. These certifications ensure compliance with high-precision specifications and special quality assurance requirements for products. The group has also acquired stringent quality certifications from major system manufacturers. This comprehensive quality system serves as a competitive advantage for the group in expanding its market.

(3) Stable and reliable supply chain system

The Group has adopted the model of international giants and built a comprehensive supply chain. It has also introduced mature products and outsourced their production to trusted suppliers to enhance production efficiency. Additionally, the Group concentrates its resources on developing high-value niche products, including key components for automobile engines, aerospace engine components, and patented bicycle belt drive system parts. This strategy aims to engage in major development projects with international giants and become part of the value chain system of world-class leading manufacturers.

(4) Introducing intelligent production management, shortening development time frames, and improving production efficiency

In order to promote the systematization and standardization of all operations, Siemens UG CNC Simulation and programming operations have been fully implemented. This has led to a reduction in CNC programming and testing time, as

149

well as more accurate quotations. The Group has independently developed and implemented a Manufacturing Execution System (MES) for production management, which allows real-time monitoring of production-related data. This enables the ERP system to integrate with Product Lifecycle Management (PLM) software, utilize Computer-Aided eXperience (CAX) tools, and integrate Statistical Process Control (SPC) systems for monitoring and managing quality parameters during the production process. This extends to strategic suppliers, significantly shortening product development cycles, improving yield rates, and enhancing production efficiency.

Advantages, disadvantages, and coping strategies for future development prospects:

Advantages

(1) The demand for automobiles and passive safety in emerging markets is continuing to grow

The emerging markets, led by China and India, have become the driving force of global growth, with their domestic markets playing a crucial role. Among these markets, China has demonstrated the most promising growth potential. With the rise in average income, price reductions, and promotions by car dealers, urbanization policies, stricter safety regulations for automotive safety systems, and a growing focus on life safety, it is anticipated that the demand in the automotive markets of China and India will continue to expand. The global automotive market is still experiencing moderate growth, which in turn fuels the demand for automotive components.

(2) The introduction of new types of safety airbags has resulted in an increase in the average number of airbags used per vehicle

Consumers' awareness of safety systems in cars is increasing. With intense competition among car manufacturers, front seat airbags have become standard equipment. Additionally, new applications such as side airbags, curtain airbags, head and chest airbags, and knee airbags are being introduced one after another. Other innovative solutions, such as insurance pole airbags, airbags for baby safety seats, rear impact airbag systems, and sensor-based airbags, have contributed to the growth of the airbag market. This expansion is advantageous for the future development of our Group.

(3) International manufacturers will expedite the release of orders

In the future, brands will prioritize the development of new technologies and product design. This will lead to an increase in the outsourcing ratio of manufacturers and a higher level of involvement from component suppliers in manufacturing.

150

(4) Has a long-term strategic partnership with a Tier 1 manufacturer on an international scale

This Group has a high entry barrier in the industry, making it difficult for new competitors to enter. Its main customers include JSS, Autoliv, Litens, BorgWarner, Mahle, Magna, Emerson, Schneider Electric, Parker Hannifin. The layout in the highly concentrated automotive airbag market is quite comprehensive. The top two manufacturers, Autoliv and JSS, are both significant customers of this group. Additionally, major automotive safety system manufacturers are actively developing active safety system devices. The Group's strategic position as a supplier will support its efforts to enter the supply chain for active safety components. In addition, building upon its existing presence in the automotive, industrial instrumentation, semiconductor, and aerospace sectors, the Group has, in recent years, established high-quality and responsive support systems in the high-end bicycle, medical, and semiconductor packaging and assembly EMS industries. This has enabled the Group to evolve from a pure component machining provider into a comprehensive solution provider offering design, manufacturing, assembly, and testing services.

(5) The main customers are diversified across various industries, making them less susceptible to the impact of economic cycles

This Group's main customers are diversified across the automotive safety systems, automotive engine transmission systems, industrial instrumentation, semiconductor equipment, aerospace components industries, and recently developed high-end bicycle components. Due to the Group's capability to manufacture essential components needed by different industries, the product portfolio is quite diverse. This allows the Company to efficiently adapt to changes in specific industry or product cycles, leading to consistent revenue.

Disadvantages

(1) The rise of Chinese mainland's domestic automotive brands and new energy vehicles could be considered a disadvantage

The Chinese automotive industry has undergone decades of development and has established a mature industrial support system. During this development process, it has formed a cluster of automotive components primarily centered around vehicle manufacturers. However, high-value components such as automotive engine transmission systems are still predominantly controlled by foreign-funded and joint venture enterprises. China's strategy for automobile manufacturing is shifting towards the new energy vehicle sector, creating a favorable policy environment for the development of intelligent electric vehicles.

151

Response strategies:

The Group's current product offerings, including belt tension control systems, vibration control systems, smart pulleys/sprockets, and shock absorbers, are still compatible with hybrid car models. The Group collaborates with Tier 1 major customers to develop components for new energy vehicle braking systems. Additionally, the Group actively seeks opportunities for cooperation with international leading manufacturers in mainland China.

(2) The cost of labor in China has been rising year by year

With the gradual increase in basic wages in China, the proportion of labor costs to manufacturing costs has been rising. This could potentially impact the profitability of our Group.

Response strategies:

In addition to continuously improving production processes to enhance efficiency and quality, the Group has also streamlined manpower requirements to increase the efficiency of product production and alleviate the cost pressure caused by rising wages. On the other hand, the Group is actively improving the automation of production and inspection processes by introducing automated machinery. This helps to replace labor-intensive tasks and inspection work, resulting in enhanced quality stability and reduced labor costs.

(3) Sino-US trade war

After Trump takes office, he is expected to further intensify tariffs and trade restrictions against China. Given various geopolitical considerations, the Group may gain additional business opportunities, though profit margins could be under pressure.

Response strategies:

The Group continues to expand integration across the industrial value chain by acquiring capabilities in precision stamping, aerospace-grade precision casting, and surface treatment. At the same time, it is investing in a new plant in Thailand to establish a production base outside of the China region.

(II) The important uses and production process of the main products

The important uses of the main products:

This Company mainly produces and assembles automotive safety systems, automotive fuel transmission systems, industrial instruments (temperature/pressure/flow control systems), semiconductor equipment control systems, high-end bicycles, aircraft control systems, aircraft engine control systems, other industrial and mechanical products, and precision metal components.

152

Production process of main products:

(III) Supply status of main raw materials

Main raw materials	Supply status
Steel	Good
Raw material	Good

(IV) Please provide the names of suppliers (customers) over the past two years that accounted for more than 10% of the total purchase (sales) amount in any single year, along with their purchase (sales) amount and proportion. Additionally, please provide an explanation for any changes in these figures.

Information about the main suppliers in the past two years.

Unit: NTD Thousand

	2024				2025
Item	Name	Amount	Percentage of Annual Net Purchase Amount (%)	Relationship with the Issuer	Name	Amount	Percentage of Annual Net Purchase Amount (%)	Relationship with the Issuer
1	Rui-Hong	288,290	12.66%	None				None
2	Other	1,988,871	87.34%	None	Other	2,076,340	100.00%	None
	Total	2,277,161	100.00%		Total	2,076,340	100.00%

Reason for changes:

(1) Re Hong: It primarily supplies semi-finished products and goods for our automotive components, as well as raw materials for our bicycle products. Starting in the second quarter of 2025, to strengthen the vertical integration benefits of the supply chain, the Company initiated a strategic "switching from outsourcing to insourcing" plan, taking in part of Re Hong's equipment and technical team. As a result, the Company's procurement needs from this supplier have been minimized.

Information about the main sales customer in the past two years

Unit: NTD Thousand

	2024				2025
Item	Name	Amount	Percentage of annual net sales (%)	Relationship with the Issuer	Name	Amount	Percentage of annual net sales (%)	Relationship with the Issuer
	Total	4,797,370	100.00%	None	Total	4,976,319	100.00%	None

Reason for the change: No customer accounted for more than 10% of the total sales in the last two years.

155

III. The Number of Employed Employees, Average Length of Service, Average Age and Education Distribution Ratio in the Last Two Years and as of the Annual Report Publication Date

Unit: persons; age; year

Year		2024	2025	As of February 28, 2026
Number of employees	Direct employees	784	903	907
	Indirect employees	540	426	427
	Total	1,324	1,329	1,334
Average age		37.78	38.61	38.86
Average years of service		6.83	6.87	7.00
Eductional distribution ratio (%)	Master	5.29	5.57	5.85
	Bachelor	48.79	49.06	48.65
	High school	33.46	32.66	32.61
	Below high school	12.46	12.71	12.89
	Total	100.00	100.00	100.00

IV. Disbursements for Environmental Protection

For the most recent fiscal year and up until the date of printing of the annual report, losses incurred due to environmental pollution (including compensation and violations of environmental protection regulations as determined by environmental inspections), should be detailed. This includes specifying the date of the penalty, penalty number, violated regulations, the nature of the violation, and the penalty imposed. Additionally, disclose estimated current and future losses and corresponding measures. If unable to reasonably estimate, explain the reasons for the inability to estimate.

We continuously dedicate efforts to environmental governance work in various aspects such as water resource management, air quality control, and waste disposal. We also actively renew pollution control equipment and provide training for operational personnel. Regular site inspections are conducted, and adjustments are made to the content of operating permits for fixed pollution sources.

V. Labor Relations

(I) Employee welfare measures, training and education, retirement systems, and their implementation, as well as agreements between labor and management and the status of measures to protect employee rights, are disclosed.

Employee welfare measures:

In order to fully take care of employees and safeguard their living conditions, our Company provides or sponsors various welfare programs. We also establish an Employee Welfare Committee in accordance with the law, select welfare committee members to handle various welfare measures, and set annual welfare budgets and plans to reasonably and effectively utilize employee welfare funds. The current welfare benefits include

birthday celebrations and gifts, various activities organized by the welfare committee (such as employee trips or gatherings), allowances for weddings, funerals, and festive occasions, regular health check-ups, group insurance for employees and travel insurance, year-end bonuses, performance/production bonuses, stock options for outstanding employees, offering of the employee stock ownership trust in February 2025 and RSAs in December 2025, and rewards for excellent employees. Profit-sharing and subsidies for external training are also provided. In terms of hardware facilities, the Company offers convenient amenities such as coffee machines, rice steamers, microwaves, refrigerators, washing machines, dryers, and parking spaces for cars and motorcycles. Additionally, the Company organizes sports and recreational competitions periodically. Apart from providing a safe and healthy work environment for employees, the Company has designated safety personnel and onsite medical staff to offer free consultations and health care advice. To create a female-friendly workplace, there are comfortable lactation rooms available for postpartum relaxation and breastfeeding. The Company also plans health programs such as weight management, smoking cessation, physical fitness courses, and health seminars to help employees achieve a balance between work and life. Furthermore, upon evaluation, the Company has been awarded the "Health Promoting Workplace Certification Self-Assessment Qualification" certification by the Health Promotion Administration of the Ministry of Health and Welfare in August 2025.

The Company's continuing education and training system:

The Company and its subsidiaries consider employees as valuable assets and prioritize talent development. We arrange professional on-the-job training courses and management courses according to various functional needs. This includes providing internal or external education and training, seminars, etc., tailored to different levels and specialties. We integrate internal and external resources to provide employees with comprehensive professional skill development and self-growth inspiration, systematically cultivating rich professional capabilities and nurturing talents capable of facing challenges.

In post-pandemic era, we have introduced and effectively utilized e-learning platforms. We encourage employees to continue their learning without interruption due to the inconvenience of physical courses caused by the pandemic. We have arranged video courses to enhance the learning channels and effectiveness for our colleagues.

The retirement system and its implementation:

(1) Due to our Company's investment in subsidiary companies, Global Tek Co., Ltd. was established in 2000. Therefore, employees who fall under the old retirement pension regulations as per the Labor Standards Act have 2% of their monthly salary deducted and deposited into a special account at a Taiwan Bank designated by the Labor Pension Fund Supervisory Committee.

156

(2) According to the Labor Pension Fund regulations, employees have the option to continue applying the old retirement pension regulations under the Labor Standards Act or retain their work seniority before the Labor Pension Fund regulations were applied. The calculation of retirement benefits is based on the years of service and the average salary for the six months before the approved retirement date.

(3) For employees who are eligible for the 'Labor Pension Fund' as stipulated, the Company contributes 6% of their salary monthly to the employee's individual retirement fund.

(4) Regarding colleagues who are transferred to subsidiary companies by the Company, their seniority will continue to be counted, providing them with additional security and fulfilling the objective of talent circulation within the Group.

Labor and management agreements:

The Company adheres to the principles of mutual trust between labor and management and profit-sharing. The management and employee benefit systems are still in good condition, and the labor-management relationship is harmonious. There have been no major labor disputes with employees.

Employee rights protection measures include:

The Company and its subsidiaries have established various management systems, including work rules approved by the competent authorities, which clearly define employee rights, obligations, and benefits. These systems are regularly reviewed and revised to maintain and protect the rights and interests of all colleagues. Apart from convening labor-management meetings, departmental meetings, and annual all-staff meetings, we also provide diverse communication channels such as e-mail, suggestion boxes, and colleague questionnaire. This allows us to listen to colleague feedback, facilitate constructive dialogue, and implement improvements, thus promoting harmonious labor relations. Additionally, through monthly newsletters, colleagues gain a clear understanding of the Company's operations and future developments. We complement this with monthly birthday celebrations, corporate culture seminars to shape our Company's culture. Furthermore, we regularly recognize outstanding and senior colleagues, serving to motivate them and enhance retention.

To date, labor-management relations have been harmonious, built on mutual trust and understanding. The Company also has an Employee Welfare Committee, which is funded by the Company to implement various employee welfare measures and enhance employee benefits.

(II) Losses suffered due to labor disputes in the most recent year and up to the date of publication of the annual report (including violations of the Labor Standards Act as a result of labor inspections, the date of the punishment, the name of the punishment, the violation of legal provisions, the content of the violation, and the content of the punishment), and

157

disclose the estimated amounts and response measures that may occur currently and in the future. If they cannot be reasonably estimated, the fact that they cannot be reasonably estimated should be explained:

Our Company's management systems and employee benefits are still in good condition, and labor-management relations are harmonious. As of the latest fiscal year and up until the date of printing this annual report, the Company has not experienced any significant labor disputes with employees resulting in losses. Under the principle of mutual trust between labor and management and profit-sharing, our Company anticipates a minimal likelihood of experiencing labor disputes resulting in losses in the future. Therefore, we have not estimated any related losses in the financial report.

VI. Cyber Security Management

(I) Cyber security risk management framework, information security policy, specific management plans, and resources invested in information security management, etc.:

To ensure the sustainable operation of our Company and address future cyber security incidents, we have established a cyber security team and defined the Company's information security policy and specific management plans. The specific measures are as follows:

Cyber security risk management structure

The following table defines and allocates cyber security roles and responsibilities based on organizational needs to ensure all cyber security activities are carried out effectively. The responsible person, members, qualifications and abilities are recorded in the "MS-IS-01-01-01_Information and Communication Security Promotion Organization Comparison Table."

Division of Labor	Responsibilities
Information Security Management Committee	1. Regularly convene management review meetings with information security management representatives and representatives from each team.
2. Approve and issue the Tier 1 and Tier 2 information and communication security management system documentation, such as the information and communication security management policies, objective plans, and related regulations aligned with the organization’s strategic direction.
3. Approval and release the changes to information security management organization personnel.
4. Review the information and communication security management system to ensure that its requirements

Division of Labor	Responsibilities
	are integrated into the organization's operational processes.
5. Review the results of risk assessment and risk mitigation plans.
6. To allocate, coordinate, and supervise information and communication security personnel, ensuring their contributions to the effectiveness of the information and communication security management system, and to support other management personnel in demonstrating leadership within their respective roles.
7. Provide the resources needed to establish, implement, maintain, and continuously improve the cyber security management system, and ensure those resources are available.
8. Communicate the importance of issues related to the effectiveness and compliance of the information and communication security management system.
9. Ensure that the cyber security management system achieves the expected results and facilitates continuous improvement.
Information Security Management Representative	1. Facilitate communication and coordination of cross-departmental issues.
2. The necessary information for implementing the information and communication security management system shall be compiled and submitted to the management review meeting for discussion.
3. Manage and track the implementation of outcomes and follow-up actions from management review meetings.
4. Promote the established cyber security policy-related documents.
5. Assist the Cyber Security Committee with the allocation, coordination, and oversight of cyber security matters.
Task force	1. Confirm that the ownership and control of information assets are appropriately managed and in

159

Division of Labor	Responsibilities
	compliance with information security risk management policies and procedures.
2. Lead the risk assessment activity.
3. Plan the cyber security risk management.
4. Approve the cyber security risk management plan, as well as any remaining risks.
5. Protect the information and other related assets, as well as research, coordination, instruction, and assistance with the implementation of security controls and measures.
6. All personnel who manage or use company information or other assets.
7. Establish a mechanism for reporting security incidents.
8. After an accident, the relevant emergency response procedures will be reported and implemented as planned.
9. Planning, evaluation, and implementation of regular drills for the business continuity plan.
10. Plan crisis management procedures.
Documentation Team	1. Internal promotion of cyber security messages, and dissemination of the protection awareness and training related to the promotion.
2. Collect, receive, and update external laws, regulations, and standards, and promptly disseminate relevant important information to internal personnel that may affect business operations and information security.
3. Responsible for document management, including establishing document standards and managing document revisions and releases.
Audit Team	1. Discuss and plan annual internal audit work, determine audit priorities and methods, and organize auditor training when necessary.
2. Before conducting the audit, complete the audit plan and submit it to the information security management representative for review.

160

Division of Labor	Responsibilities
	3. Implement information security audits and submit audit reports and related recommendations to the information security management representative.
4. Report the audit results and track improvement progress.

Cyber security policy

In order to ensure the seamless operation of the Company's related business and prevent any unauthorized access, use, control, disclosure, destruction, alteration, deletion, or other infringements of information or information systems, as well as to guarantee their confidentiality, integrity, and availability, the “MS-IS-01-01_Cyber Security Policy” is being formulated for the entire Company to adhere to.

Specific management plans

(1) The system’s reliability rate reaches over 99.99%. (Downtime hours / total operating hours ≤ 0.01%).

(2) The ratio of timely reporting, response, and recovery operations after a cyber security incident occurs is 100%.

(3) The email filtering for spam and phishing advertisements is effective with an efficiency rate of over 98% (Efficiency rate = Number of successfully filtered advertisement emails / Total advertisement emails that need filtering).

(4) Disaster recovery engineering exercise plan and operations (once annually).

(5) Cyber security education and real-time cyber security incident reporting and awareness (Cyber security education at least twice every six months / real-time Cyber security incident awareness at irregular intervals), totaling 19 instances of awareness in 2025.

(6) There was a data breach incident in the Company's information technology system, occurring less than once per year.

(7) Penetration testing and vulnerability scanning operations are conducted once annually.

Allocating resources to cyber security management

Staffing: Appointing one dedicated cyber security manager and one cyber security team member.

Incident:

(1) Daily routine hardware equipment inspections.

(2) Daily monitoring of antivirus reports and handling problematic computers.
(3) Daily monitoring of internet activity and firewall information.
(4) Daily system backup execution report checking.
(5) Daily checking and handling of user client software and hardware change reports.
(6) Deployment and monitoring of major Microsoft system updates on a monthly basis.
(7) Execute disaster recovery at least once every six months.
(8) Conduct major system personnel permission reviews annually in collaboration with audit units.
(9) Perform system vulnerability detection once a year.

Object:

(1) F-Secure antivirus software for client devices.
(2) WinMatrix is a client software and hardware asset management software.
(3) Establishing a high-reliability architecture for core systems (AP Mode).
(4) Establishing a high-reliability architecture for core network equipment (AA Mode).
(5) Establishing a remote backup mechanism.
(6) Establishing firewalls between each site.
(7) Isolation of the factory-side and office-side network segments.
(8) Establishing domain control policies.
(9) Establishing an anti-spam and anti-phishing system for the email system.
(10) Wireless network guest system.
(11) EDR endpoint detection and response.
(12) WAN line traffic filtering protection.

(II) During the recent fiscal year and up until the printing of the annual report, any losses, potential impacts, and corresponding measures arising from significant cyber security incidents that cannot be reasonably estimated should be explained as such:

Our Company has had no significant cyber security incidents, and there has been no major impact on our financial and business operations.

162

VII. Important Contracts

Company category	Nature of contract	Parties involved	Contract start and end dates	Main content	Restrictions Clause
Global Tek	Short-term borrowing	Bank of Taiwan	2025.08.20-2026.08.20	Operating revolving credit	None
Global Tek	Medium-term borrowing	Bank of Taiwan	2025.01.15-2030.01.15	Operating revolving credit	None
Global Tek	Medium-term borrowing	Bank of Taiwan	2023.02.15-2028.02.15	Operating revolving credit	None
Global Tek	Medium-term borrowing	Bank of Taiwan	2023.02.15-2028.02.15	Operating revolving credit	None
Global Tek	Medium-term borrowing	Land Bank of Taiwan	2023.08.18-2026.08.18	Operating revolving credit	None
Global Tek	Short-term borrowing	Land Bank of Taiwan	2025.06.02-2026.06.02	Operating revolving credit	None
Global Tek	Medium-term borrowing	Land Bank of Taiwan	2022.03.28-2027.03.28	Land Bank Financing	None
Global Tek	Short-term borrowing	Bank SinoPac	2025.06.03-2026.06.03	Operating revolving credit	None
Global Tek	Short-term borrowing	Cathay United Bank	2025.12.30-2026.12.03	Operating revolving credit	None
Global Tek	Short-term borrowing	Taishin International Bank	2025.08.15-2026.07.31	Operating revolving credit	None
Global Tek	Medium-term borrowing	Yuanta Commercial Bank	2025.04.16-2027.04.16	Operating revolving credit	None
Global Tek	Medium-term borrowing	Bank of Shanghai	2025.04.23-2032.04.23	Operating revolving credit	None
Global Tek	Short-term borrowing	First Commercial Bank	2026.01.14-2027.01.14	Operating revolving credit	None
Global Tek Technology	Short-term borrowing	Land Bank of Taiwan	2025.06.02-2026.06.02	Operating revolving credit	None
Global Tek Technology	Short-term borrowing	Taishin International Bank	2025.08.15-2026.07.31	Operating revolving credit	None
Global Tek Technology	Short-term borrowing	Bank SinoPac	2025.06.02-2026.05.31	Operating revolving credit	None
Global Tek Technology	Short-term borrowing	Bank of Taiwan	2026.01.19-2027.01.19	Operating revolving credit	None
Global Tek Technology	Short-term borrowing	First Commercial Bank	2025.04.16-2026.04.16	Operating revolving credit	None
Global Tek (Wuxi)	Short-term borrowing	Bank of China	2022.12.09-2026.06.08	Operating revolving credit	None
Global Tek (Wuxi)	Short-term borrowing	Bank of Jiangsu	2022.08.24-2027.01.06	Operating revolving credit	None
Global Tek (Wuxi)	Short-term borrowing	Bank of Ningbo	2023.12.06-2026.11.09	Operating revolving credit	None
Global Tek (Wuxi)	Short-term borrowing	CTBC Bank	2022.10.28-2026.01.07	Operating revolving credit	None
Global Tek (Wuxi)	Short-term borrowing	China Merchants Bank	2024.04.15-2026.11.12	Operating revolving credit	None

163

Company category	Nature of contract	Parties involved	Contract start and end dates	Main content	Restrictions Clause
Global Tek (Wuxi)	Short-term borrowing	Industrial and Commercial Bank of China Limited	2024.09.09-2026.09.28	Operating revolving credit	None
Global Tek (Xi'an)	Short-term borrowing	China Merchants Bank	2024.01.22-2027.01.21	Operating revolving credit	None
Global Tek (Xi'an)	Short-term borrowing	First Commercial Bank	2025.07.03-2026.07.03	Operating revolving credit	None
AvioCast Inc.	Mid-term loans	Bank SinoPac	2024.11.01-2027.10.31	Syndicated loan project	Building mortgage
AvioCast Inc.	Mid-term loans	Bank SinoPac	2024.11.01-2027.10.31	Operating revolving credit	Building mortgage
AvioCast Inc.	Short-term borrowing	Bank SinoPac	2025.05.08-2026.05.31	Operating revolving credit	Building collateral
AvioCast Inc.	Short-term secured borrowings	Bank SinoPac	2025.05.08-2026.05.31	Operating revolving credit	Building collateral
AvioCast Inc.	Letter of guarantee facility	Hua Nan Commercial Bank, Ltd.	2025.08.28-2026.09.30	Government project - bank performance guarantee facility	Investment amounting to 30% of the guarantee issued
AvioCast Inc.	Mandate guarantee	Mega International Commercial Bank	2025.04.10-2026.04.10	Deferred tax payment loan
AvioCast Inc.	Short-term borrowing	Taishin International Bank	2024.12.26-2025.12.31	Operating revolving credit	10% of the pledged amount disbursed
AvioCast Inc.	Short-term borrowing	First Commercial Bank	2025.07.09-2026.07.08	Operating revolving credit
AvioCast Inc.	Short-term borrowing	Land Bank of Taiwan	2025.09.04-2026.09.03	Operating revolving credit
Global Tek (Suzhou)	Short-term credit loans	Commercial Bank of China branch in Wuxi	2025.08.01-2026.07.31	Operating revolving credit
Global Tek (Suzhou)	Short-term credit loans	First Commercial Bank	2025.07.31-2026.07.30	Material revolving credit line	10% of margin deposit for the drawn credit amount
Global Tek (Suzhou)	Long-term borrowing	CTBC Bank	2025.08.29-2027.08.28	Operating revolving credit
Global Tek (Suzhou)	Short-term borrowing	Bank of Ningbo	2025.07.07-2026.07.07	Operating revolving credit
Global Tek Group (Thai) Co. Ltd.	Engineering contract	DE FAMILY CONSTRUCTION CO., LTD.	After April 9, 2025 - project completion acceptance passed.	Excavation, backfilling and compaction works
Global Tek Group (Thai) Co. Ltd.	Engineering contract	DE FAMILY CONSTRUCTION CO., LTD.	After April 24, 2025 - project completion acceptance passed.	Structural engineer's fees & application for a construction permit from the government.

Company category	Nature of contract	Parties involved	Contract start and end dates	Main content
Global Tek Group (Thai) Co. Ltd.	Engineering contract	DE FAMILY CONSTRUCTION CO., LTD.	After July 11, 2025 - project completion acceptance passed.	Plant construction contract
Global Tek Group (Thai) Co. Ltd.	Engineering contract	FUTAI CONSTRUCTION ENGINEERING CO., LTD.	After July 11, 2025 - project completion acceptance passed.	Construction project steel structure contract
Global Tek Group (Thai) Co. Ltd.	Engineering contract	GUALONG AUTOMATIC SERVICE CO., LTD.	After September 9, 2025 - project completion acceptance passed.	Plant electromechanical design and construction contract
Global Tek Group (Thai) Co. Ltd.	Engineering contract	DE FAMILY CONSTRUCTION CO., LTD.	After December 24, 2025 - project completion acceptance passed.	Construction contract for stainless steel sink installation (A/B/D/J1/S1 workshop)
Global Tek Group (Thai) Co. Ltd.	Engineering contract	DE FAMILY CONSTRUCTION CO., LTD.	After December 24, 2025 - project completion acceptance passed.	High-voltage power engineering construction contract

Five. Review and Analysis of Financial Position and Financial Performance and Listing of Risks

I. Financial Position

(I) Comparative Analysis of Financial Position

Unit: NTD 1,000

| Year
Item | 2024
(After adjustment) | 2025 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | % |
| Current Assets | 5,190,825 | 5,296,255 | 105,430 | 2.03% |
| Property, Plant, and Equipment | 3,962,305 | 4,285,235 | 322,930 | 8.15% |
| Intangible Assets | 114,954 | 121,120 | 6,166 | 5.36% |
| Other Assets | 992,178 | 871,746 | (120,432) | (12.14%) |
| Total Assets | 10,260,262 | 10,574,356 | 314,094 | 3.06% |
| Current Liabilities | 2,644,951 | 2,827,389 | 182,438 | 6.90% |
| Long-term Liabilities | 1,719,066 | 1,875,314 | 156,248 | 9.09% |
| Other Liabilities | 846,615 | 835,179 | (11,436) | (1.35%) |
| Total Liabilities | 5,210,632 | 5,537,882 | 327,250 | 6.28% |
| Capital Stock | 1,097,208 | 1,098,118 | 910 | 0.08% |
| Capital Surplus | 2,805,479 | 2,812,750 | 7,271 | 0.26% |
| Retained Earnings | 1,075,025 | 1,033,661 | (41,364) | (3.85%) |
| Other Equity | (26,337) | 2,762 | 29,099 | (110.49%) |
| Non-controlling Interest | 98,255 | 89,183 | (9,072) | (9.23%) |
| Total Shareholders' Equity | 5,049,630 | 5,036,474 | (13,156) | (0.26%) |

Description: The main reasons for any material change (the change in the amount from the previous year is more than 10%, and the amount reaches 1% of the total assets of the year) during the past two years and the effect thereof:

Other assets: Mainly due to the gradual completion and acceptance of prepayments for equipment in 2024, resulting in the reclassification of them as property, plant and equipment in 2025.
Other equity: Mainly due to increase in the exchange differences on translation of foreign financial statements and the appreciation of the financial assets at fair value through other comprehensive income or loss.

(II) The main reasons for any material change in the Company's assets, liabilities, or equity during the past two years and the effect thereof, as well as the measures to be taken in response where the effect is of material significance: None.

167

II. Financial Performance

(I) Financial Analyses for the Past Two Years

Unit: NTD 1,000

| Item | Year | 2024
(After adjustment) | 2025 | Increase
(Decrease)
Amount | Change (%) |
| --- | --- | --- | --- | --- | --- |
| Net Operating Revenue | | 4,797,370 | 4,976,319 | 178,949 | 3.73% |
| Operating Costs | | 3,756,449 | 3,874,258 | 117,809 | 3.14% |
| Operating Profit | | 1,040,921 | 1,102,061 | 61,140 | 5.87% |
| Operating Expenses | | 883,445 | 881,811 | (1,634) | (0.18%) |
| Operating Income | | 157,476 | 220,250 | 62,774 | 39.86% |
| Non-operating Income and Expenses | | 121,615 | (18,378) | (139,993) | (115.11%) |
| Income before Tax | | 279,091 | 201,872 | (77,219) | (27.67%) |
| Income Tax Expenses | | 82,231 | 64,649 | (17,582) | (21.38%) |
| Net income for this Period | | 196,860 | 137,223 | (59,637) | (30.29%) |

Operating income: Mainly due to the increase in the Group’s operating revenue and gross profit margin, and the decrease in operating expenses in 2025.
Non-operating income and expenses: Mainly due to the appreciation of the NTD in 2025, resulting in foreign exchange losses.
Income before tax: Mainly due to the appreciation of the NTD in 2025, resulting in foreign exchange losses.
Income tax expenses: Mainly due to exchange losses eroding net profit, resulting in the corresponding decrease in income tax expenses.
Net income for this period: Mainly due to foreign exchange losses that eroded profits, resulting in the decrease in overall income after tax.

(II) The main reasons for any material change in operating revenues, operating income, or income before tax during the past two years, a sales volume forecast and the basis therefor, and the effect upon the Company's financial operations as well as measures to be taken in response:

The Company did not prepare and announce financial forecasts, so there is no need to disclose a sales volume forecast and the basis therefor. Besides, the Company's overall performance was relatively normal, so it was not required to develop measures to be taken in response.

III. Cash Flows

(I) Cash Flow Analysis for the Current Year

Unit: NTD 1,000

Year Item	2024 (After adjustment)	2025	Increase (Decrease)
			Amount	%
Operating Activities	547,104	390,652	(156,452)	(28.60%)
Investing Activities	(468,131)	(470,644)	(2,513)	0.54%
Financing Activities	(148,525)	194,006	342,531	(230.62%)
Effect of Exchange Rate Changes	42,916	36,870	(6,046)	(14.09%)
Net Cash Generated	(26,636)	150,884	177,520	(272.77%)
Description: 1. Decrease in net cash inflow from operating activities: Mainly due to the decrease in net profit, slight increase in inventory and decrease in interest income. 2. Increase in net cash outflow from investing activities: There is no significant change between the two periods. 3. Increase in net cash outflow from financing activities: Mainly due to the increase in bank margin balance to meet the need for subsequent business expansion, ensure sufficient working capital and improve financial flexibility.

(II) Corrective Measures to be Taken in Response to Illiquidity:

The Company had sufficient funds and encountered no liquidity crisis.

(III) Liquidity Analysis for the Coming Year

Unit: NTD 1,000

Cash at Beginning of the Year (1)	Projected Net Cash Flows from Operating Activities (2)	Projected Cash Flows from Investing and Financing Activities (3)	Projected Cash Surplus (Inadequacy) (1)+(2)-(3)	Remedial Measures for Projected Cash Inadequacy
				Investment Plan	Financing Plan
2,089,586	1,005,609	(740,093)	2,355,102	-	-
Description: (1) Operating activities: Cash flows from operating activities in the coming year are mainly due to an increase in net cash generated from operating activities as a result of a profit. (2) Investing activities: Cash flows from investing activities in the coming year are mainly based on the prediction that the Company’s profit will grow steadily in the coming year; however, due to the growth and expansion of business group-wide, investments in equipment, as well as investment in expansion, will continue to increase. As a result, net cash used in investing activities is estimated. (3) Financing activities: Cash flows from financing activities in the coming year are mainly due to the distribution of cash dividends. (4) Remedial measures for cash inadequacy: Not applicable.

IV. Effect on Financial Operations of Any Major Capital Expenditures during the Most Recent Fiscal Year

Major capital expenditures were mainly on the purchase of machinery and equipment in response to an increase in orders, which positively contributed to the financial operations of the Company. On May 14, 2025, the Board of Directors of the Company resolved to increase the investment amount in Thailand from THB450 million to THB1 billion. The funds will be used for land acquisition, civil engineering and infrastructure throughout the factory premises and steel structure projects, to accommodate market business development and global supply chain strategies. Funding will come from own capital and bank loans, and will be allocated and invested in phases per operational needs.

V. Reinvestment Policy for the Most Recent Fiscal Year, Main Reasons for Profits/Losses Generated Thereby, Plan for Improving Re-investment Profitability, and Investment Plans for the Coming Year

December 31, 2025 Unit: NTD 1,000

Company	Reinvestment Policy	Investment Profit (Loss) in 2025	Main Reasons for the Profits/Losses Generated Thereby	Plan for Improving Re-investment Profitability	Investment Plans for the Coming Year
GLOBAL TEK CO., LTD.	Precision machining of auto parts	10,873	Profits generated based on the established policy.	None	None
GLOBAL TEK FABRICATION CO., LTD. (Samoa)	General investment	183,199	Profits generated from GLOBAL TEK(XI'AN) CO., LTD. and GLOBAL TEK(WU'XI) CO., LTD.	None	None
GLOBAL TEK CO., LTD.	General investment	147,802	Profits generated from GLOBAL TEK(XI'AN) CO., LTD. and GLOBAL TEK(WU'XI) CO., LTD.	None	None
GLOBAL TEK FABRICATION CO., LTD. (Hong Kong)	General investment	61,286	Profits generated from GLOBAL TEK(WU'XI) CO., LTD.	None	None
GLOBAL TEK(XI'AN) CO., LTD.	Precision machining of industrial automation parts and aerospace parts	89,099	Profits generated based on the established policy.	None	None

Company	Reinvestment Policy	Investment Profit (Loss) in 2025	Main Reasons for the Profits/Losses Generated Thereby	Plan for Improving Re-investment Profitability	Investment Plans for the Coming Year
GLOBAL TEK(WU'XI) CO., LTD.	Precision machining of auto parts	115,680	Profits generated based on the established policy.	None	None
Global Tek, Inc.	Sale of auto parts, industrial automation parts, communication parts, aerospace parts, etc.	105	Based on the established policy.	None	None
GLOBAL TEK GmbH	Sale of auto parts, industrial automation parts, and aerospace parts	977	Based on the established policy.	None	None
GLOBAL TEK METAL MANUFACTURING (SHAANXI) CO;LTD	Industrial automation parts, communication parts, and aerospace parts	4,184	Profits generated based on the established policy.	None	None
GLOBAL TEK (SUZHOU) PRECISION INDUSTRY CO., LTD.	Precision machining of auto parts	(60,285)	Profits reduced due to the shift towards electric vehicles, which affected the auto industry in mainland China.	None	None
AvioCast Inc.	Manufacturing and sale of aerospace aluminum alloy casting	17,282	Aerospace industry has been gradually recovering and generating profits.	None	None

Company	Reinvestment Policy	Investment Profit (Loss) in 2025	Main Reasons for the Profits/Losses Generated Thereby	Plan for Improving Re-investment Profitability	Investment Plans for the Coming Year
GLOBAL TEK 株式會社	Sale of auto parts, industrial automation parts, and aerospace parts	4,349	Based on the established policy.	None	None
GLOBAL TEK GROUP (THAI) CO., LTD.	Precision machining of auto parts	(1,714)	The newly established subsidiary, currently in the plant construction planning phase.	None	Planning to construct plants.
GLOBAL TEK AVIATION (THAI) CO., LTD.	Precision machining of aerospace parts	(102)	The newly established subsidiary, currently in the plant construction planning phase.	None	Planning to construct plants.

VI. Listing of Risks

Analysis and assessment of the following matters during the most recent fiscal year and up to the date of publication of the annual report:

(I) Effect on the Profit (Loss) of Interest and Exchange Rate Fluctuations and Changes in the Inflation Rate, and Response Measures to Be Taken in the Future:

Impact of Interest Rate Changes and Response Measures

According to the Company’s consolidated financial statements for 2025, interest expenses totaled NTD81,364 thousand, accounting for 1.64% of net operating revenue. Therefore, the effect of interest rate fluctuations on the Company’s profit (loss) was insignificant. With robust finances and good credit, the Company has maintained good relationships with correspondent banks for many years; thus, the Company could land favorable interest rates. Interest rate fluctuations in the future would not have a significant effect on the Company’s overall operations.

Effect of exchange rate fluctuations and response measures to be taken in the future

According to the Company’s consolidated financial statements for 2025, net exchange losses reached NTD45,178 thousand accounting for 0.91% of net operating revenue. The Company's products are mainly exported. The Company has been developing international customers for many years. Therefore, operating revenue has been affected by exchange rate fluctuations to some extent, which cannot be ignored.

In response, the Company took the following measures:

(1) Collect information on exchange rate fluctuations at any time, consult banks and get their insight into exchange rate trends and related information, and adjust foreign currency positions in a timely manner through low-risk and stable cash management to avoid exchange risks.

(2) Consider exchange rate fluctuations when quoting with customers to mitigate transaction risks, and impart the concept of risk sharing to customers to ensure the profitability of the Company's products.

(3) Deal with procurement expenses in the same currency as sales revenue’s as a hedge against exchange rate fluctuations and quote and pay in US dollars as much as possible to avoid exchange risks.

Effect of changes in the inflation rate and response measures to be taken in the future

The Company pays close attention to fluctuations in market prices and inflation. If the purchase cost increases due to inflation, the Company will adjust the material prices and sale prices in a timely manner. In addition, the Company strengthens inventory control and improve the turnover rate to abate the adverse effects of rising raw material prices.

(II) Policy regarding High-risk Investments, Highly Leveraged Investments, Loans to Other Parties, Endorsements/Guarantees, and Derivatives Transactions, Main Reasons for the Profit (Loss) Generated Thereby, and Response Measures to Be Taken in the Future:

172

During the most recent fiscal year and up to the date of publication of the annual report, the Company did not make high-risk investments or highly leveraged investments based on a conservative and moderate approach. In the future, the Company will make investments in accordance with internal regulations after careful assessment.
Policy regarding loans to other parties, endorsements/guarantees, and derivatives transactions, main Reasons for the profit (loss) generated thereby, and response measures to be taken in the future

The Company has formulated regulations, including "Operational Procedures for Loaning of Company Funds," "Operational procedures for Endorsements and Guarantees," and "Operational Procedures for Acquisition and Disposal of Assets," which regulate the Company and affiliates when they operate; in particular, the loaning of funds to others and endorsements/guarantees are limited to the Company and handled in accordance with the aforesaid policies and response measures.

(III) R&D Work to Be Carried Out in the Future and Further Expenditures Expected for R&D Work:

The Company is a professional metal precision parts processing manufacturer, with core technology lying in the research and development of automatic lathes, milling machines, turning and milling compound machines, grinding machines, and surface treatment. In addition to enhancing core precision processing technology, the Company is actively participating in the large development plans of major car companies. By considering the needs of the process early in the stage of product design, the Company hopes to yield twice the result and improve development and design capabilities. Therefore, the Company will gradually invest in the development of required R&D talents and automation equipment and fixtures based on customer needs.

According to the Company's business policy, further expenditures expected for R&D work will remain at 3% of operating revenue.

(IV) Effect on the Financial Operations of Important Policies Adopted and Changes in the Legal Environment at Home and Abroad, and Measures to Be Taken in Response:

The Company operated in accordance with relevant laws and regulations at home and abroad. In recent years, the Company's operation has not been affected by changes in the legal environment at home and abroad. The Company always pays attention to the development trends of domestic and foreign policies and changes in laws and regulations to take appropriate measures as soon as possible.

(V) Effect on the Financial Operations of Developments in Science and Technology (including Cyber Security Risks) and Industrial Change, and Measures to Be Taken in Response:

The Company always pays attention to the developments in technology and changes in the industry and continuously improves research and development capabilities. Therefore, developments in science and technology and industrial changes have no significant effect on the Company's financial operations.

173

As network and communication technologies evolve, information systems have become an indispensable part of business operations. All information systems within the organization may be exposed to cyber threats. To maintain business sustainability, the Company has a firewall; anti-virus software has also been installed on the server and each employee's computer to automatically patch operating system loopholes, regularly back up company data and ERP data, and perform backup tests; in addition, the cyber security department monitors cyber security projects on a daily basis to reduce cyber security risks. At present, there is no major cyber security risk that has a significant effect on the Company's financial operations.

(VI) Effect on the Crisis Management of Changes in the Corporate Image, and Measures to Be Taken in Response:

The Company always adheres to the business philosophy of professionalism and integrity, and attaches great importance to the corporate image and risk control. At present, there is no foreseeable corporate crisis.

(VII) Expected Benefits and Possible Risks Associated with Any Mergers and Acquisitions, and Measures to Be Taken in Response:

The Company had no ongoing mergers and acquisitions in the most recent year and had no plan for mergers and acquisitions of other companies. In case of a merger or acquisition, the Company will carefully take the synergies of the merger or acquisition into account to maintain the interests of the Company and shareholders.

(VIII) Expected Benefits and Possible Risks Associated with Any Plant Expansion, and Measures to Be Taken in Response:

On May 14, 2025, the Board of Directors of the Company resolved to increase the investment amount in Thailand from THB450 million to THB1 billion. The funds will be used for land acquisition, civil engineering and infrastructure throughout the factory premises and steel structure projects, to accommodate market business development and global supply chain strategies. Funding will come from own capital and bank loans, and will be allocated and invested in phases per operational needs. On July 11, 2025, GLOBAL TEK GROUP (THAI) CO., LTD. entered into a contract for the construction of a new plant on its own land, with a total contract value exceeding NTD500 million.

(IX) Risks Associated with Any Concentration of Sales or Purchasing Operations, and Measures to Be Taken in Response:

Risks associated with the concentration of purchasing operations, and measures to be taken in response

The Company sources main materials from long-term suppliers designated or audited by the customers whose quality, supply, finances, and management meet the customers' requirements. The rest of the major suppliers have long-term and stable relationships with the Company, with high stability in terms of quality, supply, delivery. The raw materials of the Company mainly include bars, stampings, forgings and castings of metals, including stainless steel, carbon steel, titanium alloy, aluminum alloy, copper,

174

and other metal raw materials. The Company does not source from single suppliers to reduce the risk of centralized procurement.

Risks associated with the concentration of sales operations, and measures to be taken in response

Over the past two fiscal years, the Company has not had any single customer accounting for 10% or more of the total sales revenue, and there is no concentration of sales. In the future, the Company will aim to develop and retain customers in automobile, industrial application, bicycle, and aerospace industries to effectively diversify customer groups and reduce the risk of sales concentration.

(X) Effect on and Risk to the Company in the Event a Major Quantity of Shares Belonging to a Director, Supervisor or Shareholder Holding Greater than a 10% Stake in the Company Has Been Transferred or Has Otherwise Changed Hands, and Measures to Be Taken in Response: None.

(XI) Effect on and Risk to the Company Associated with Any Change in Governance Personnel or Top Management, and Measures to Be Taken in Response: None.

(XII) Litigious and Non-litigious Matters: None.

(XIII) Other Important Risks, and Mitigation Measures Being or to Be Taken: None.

VII. Other Important Matters: None.

175

176

Six. Special Disclosure

I. Information on affiliated companies:

Please refer to the MOPS > Company > Electronic Document Download > Affiliate Disclosure Forms Section
https://mopsov.twse.com.tw/mops/web/t57sb01_q10

II. Private Placement of Securities during the Most Recent Fiscal Year and during the Current Fiscal Year Up to the Date of Publication of the Annual Report:

Please refer to the MOPS > Special Sections > Investment Area > Private Placement Section > Private Placement Section
https://mops.twse.com.tw/mops/#/web/t116sb01

III. Other Supplementary Information: None.

I. The dishonoring of negotiable instruments due to insufficient deposit, the refusal to transact by banking services, or other events that result in the loss of good credit standing: None.

II. Litigation, non-litigious proceeding, administrative disposition, administrative dispute, security procedure, or compulsory execution, which has had a significant impact on the financial status or business of the company: None.

III. Serious drop in the output, complete or partial suspension of work, lease of the company factory or its main facilities, or complete or partial pledge of the material assets which has had a significant impact on the company business: None.

IV. Any event specified under Article 185, paragraph 1 of the Company Act: None.

V. Judgment by the competent court to prohibit the transfer of the company's shares under Article 287, paragraph 1, item 5 of the Company Act: None.

VI. Change in Chairman, President, or one-third or more of the Directors: None.

VII. Change in the auditing and certifying accountant. However, where the change is due to internal adjustments in the accounting office, this matter shall not be included: None.

VIII. Execution, amendment, termination, and rescindment of the important memoranda, strategic alliances or other cooperative business plans, or important contracts, change in the material contents of the business plan, completion of new product development, successful development of trial products, and formal entrance into mass production, or acquisition of other enterprises, acquisition or assignment of patent rights, exclusive trademark use rights, copyrights, or other intellectual property rights transactions, which have a major effect on the finances or business of the company: None.

IX. Other important events that have had significant impact on the continuation of company operation: None.

177

Global Tek Fabrication Co., Ltd.

Chairman: Liu, Tsu-Yin

AI assistant

GLOBAL TEK — Annual Report 2025

52410_rns_2026-05-13_b32480e4-ede1-4931-badf-030d9f673b96.pdf

GLOBALTEK

2025 Annual Report

Table of Content

One. Letter to Shareholders

Dear Shareholders:

Two. Group's Sustainable Development for ESG

4. Board Diversity and Independence:

(1) Board Diversity:

II. Remuneration of Directors, Supervisors, President, and Vice Presidents in the Most Recent Year

Manager's name responsible for distributing employee remuneration and details of the distribution

1-1 Recent Two-Year Company Greenhouse Gas Inventory and Verification Status

1-1-1 Greenhouse Gas Inventory Information

1-1-2 Greenhouse Gas Assurance Information

1-2 Greenhouse Gas Reduction Goals, Strategies, and Specific Action Plans

Base year of greenhouse gas reduction and reduction goals

Reduction Target Achievement Status

IV. Information on CPA Professional Fees

V. Information on Replacement of CPAs:

VI. The Chairman, President, or Any Managerial Officer in Charge of Finance or Accounting Matters in the Most Recent Fiscal Year Holding a Position at the CPAs' Accounting Firm or an Affiliate of the Accounting Firm: None.

VII. Any Transfer of Equity Interests and Pledge of or Change in Equity Interests During the Most Recent Fiscal Year and during the Current Fiscal Year Up to the Date of Publication of the Annual Report by a Director, Supervisor, Managerial Officer, or Shareholder with a Stake of More than 10%

Three. Fundraising Status

I. Capital and Shares

II. Issuance of Corporate Bonds:

(I) Issuance of Corporate Bonds

Automobiles and Parts Manufacturing Process

A. Global Automotive Market

《世界经济展望》增长率预测

a. Market structure and brand performance

B.Global Automotive Component Industry

2025年全球汽车零部件供应商百强榜

A. Oil and Gas Industry

Comparison of Global Oil Production and Demand

B. Semiconductor Equipment Industry

C. Accelerated water-cooling system for computation

D. Bicycle Industry

(3) Aerospace Industry

2. Interrelationship of Industries: Upstream, Midstream, and Downstream

B. Global Automotive Component Industry

C. Automobile Safety System Market

D. Industrial applications in the oil and gas industry

C. Industrial application components

D. Aerospace Components

II. Analysis of Market and Production and Marketing Situation

(I) Market Analysis

(3) Aerospace Industry

A. Demand side

B. Supply side

4. Competitive Niche:

(1) High proficiency in key machining materials

(2) Leading quality

(3) Stable and reliable supply chain system

(4) Introducing intelligent production management, shortening development time frames, and improving production efficiency

Advantages

Disadvantages

III. The Number of Employed Employees, Average Length of Service, Average Age and Education Distribution Ratio in the Last Two Years and as of the Annual Report Publication Date

IV. Disbursements for Environmental Protection

V. Labor Relations

VI. Cyber Security Management

Five. Review and Analysis of Financial Position and Financial Performance and Listing of Risks

I. Financial Position

II. Financial Performance

(I) Financial Analyses for the Past Two Years

(II) The main reasons for any material change in operating revenues, operating income, or income before tax during the past two years, a sales volume forecast and the basis therefor, and the effect upon the Company's financial operations as well as measures to be taken in response:

III. Cash Flows

Six. Special Disclosure

Global Tek Fabrication Co., Ltd.

More from GLOBAL TEK

GLOBAL TEK Annual Report 2025