HIWIN®

Code: 2049

http://mops.twse.com.tw

http://www.hiwin.tw

2025 Annual Report

HIWIN TECHNOLOGIES CORP.

2026.5.8

Table of Content

One. Letter to Shareholders ... 1
I. 2025 Business Report ... 2
II. 2026 business plan overview ... 3

Two. Corporate Governance Report

I. Information on the company's directors, supervisors, general manager, assistant general managers, deputy assistant general managers, and the chiefs of all the company's divisions and branch units ... 5
II. Remuneration paid during the most recent fiscal year to directors, the general manager, and assistant general managers ... 19
III. The state of the company's implementation of corporate governance ... 26
IV. Information on the professional fees of the attesting CPAs ... 82
V. Information on replacement of certified public accountant ... 83
VI. Where the company's chairperson, general manager, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed ... 83
VII. Any transfer of equity interests and/or pledge of or change in equity interests (during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report) by a director, managerial officer, or shareholder with a stake of more than 10 percent during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report ... 84
VIII. Relationship information, if among the company's 10 largest shareholders any one is a related party or a relative within the second degree of kinship of another ... 85
IX. The total number of shares and total equity stake held in any single enterprise by the company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly by the company ... 86

Three. Fundraising

I. Capital and shares ... 87
II. Issuance of corporate bonds ... 89
III. Issuance of preferred shares ... 89
IV. Issuance of global depository receipts ... 89
V. Issuance of employee share subscription warrants ... 89
VI. Issuance of new restricted employee shares ... 89
VII. Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies ... 89
VIII. Capital allocation plan implementation ... 89

Four. Operation Overview

I. A description of the business ... 90
II. Market, production, and sales status ... 95
III. Employee information of the most recent two years and up to the publication date of this annual report ... 99
IV. Information regarding expenditure on environmental protection ... 99
V. Labor relations ... 101
VI. Cyber security management ... 105
VII. Important contracts ... 108

Five. Review and Analysis of Financial Position, Operation Results, and Risks

I. Financial position ... 109
II. Financial performance ... 110
III. Cash flow ... 111
IV. Effects of major capital expenditure on financial business of the most recent fiscal year ... 111
V. Reinvestment policy of the past year, main causes for profits or losses, improvement plan and reinvestment plan for the coming year ... 111
VI. Risk analysis and evaluation of the most recent year and up to the publication date of this annual report ... 112
VII. Other important matters ... 115

Six. Special Items

I. Information related to the company's affiliates ... 116
II. Private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report ... 116
III. Other matters that require additional description ... 116
IV. If any of the situations listed in Article 36, paragraph 2, subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report ... 116

Notice to Readers

This English version of the 2025 Annual Report is intended solely for reference purposes and is provided the convenience of international readers. The financial and non-financial information contained herein presented in accordance with the relevant laws, regulations, accounting principles, and practices generally accepted in the Republic of China (Taiwan) and applicable to companies listed on the Taiwan State Exchange or Taipei Exchange, and may not be comparable to financial statements or disclosures prepared in accordance with the laws or practices of other jurisdictions.

The original 2025 Annual Report was prepared and issued in the Chinese language, which shall be the official and legally binding version. This English version has been translated from the original Chinese version and is not intended to serve as a substitute for the Chinese version.

In the event of any inconsistency, discrepancy, omission, or difference in interpretation between the English version and the original Chinese version, the Chinese-language 2025 Annual Report shall prevail.

One. Letter to Shareholders

Dear Shareholders and Stakeholders,

In 2025, the global market continued to face challenges arising from reciprocal tariffs, currency fluctuations, and supply chain restructuring. The global Manufacturing Purchasing Managers' Index (PMI) averaged only 49.6% for the year, indicating insufficient momentum for economic recovery. Amid these external headwinds, HIWIN leveraged its solid foundation in smart manufacturing and continued to strengthen its long-term competitiveness through sustained R&D and innovation. In 2025, HIWIN achieved consolidated revenue of NT$24.263 billion, representing a slight year-on-year decrease of 0.53% compared to 2024. Nevertheless, the Company maintained stable performance and demonstrated resilience in a volatile market environment.

In response to global economic cycle adjustments and structural transformation across industries, HIWIN remains firmly focused on high-end applications, continuously enhancing its key component technologies and mechatronics integration capabilities to increase the value of total solution offerings. HIWIN products are widely applied across industries including smart manufacturing, automation, semiconductors, healthcare, aerospace, green energy, and AI robotics, enabling customers to improve product precision, production efficiency, and system integration. These efforts of production line upgrade and process optimization, enabling HIWIN to sustain its competitive advantage in the precision transmission and motion control market.

To expand into new products, new markets, and strengthen localized services worldwide, the HIWIN Group continues to deepen its global footprint. New facilities including Taichung Industrial Park Plant II, the new plant of the Italian subsidiary, the Penang office in Malaysia, and the Matrix Precision Co., LTD. Fongshan Plant—have been completed and commenced operations, further enhancing cross-regional operational flexibility and overall service capacity.

With customer value as its core, HIWIN's brand has received strong recognition from leading global customers. The Italian subsidiary was honored with the "Strategic Partner Award" from the VOILAP Group and has ranked first in the "Transmission Components" category for consecutive years in the official magazine of UCIMU, the Italian Machine Tool Manufacturers' Association. HIWIN's Japanese subsidiary received the "Best Partner Award" from IHI, as well as a letter of appreciation from FUJI, underscoring the profound trust and collaboration between HIWIN and its global customers.

In terms of product innovation, HIWIN continued to receive prestigious recognition in 2025: 1. The Cartesian Robot – KK Series received the Taiwan Excellence Silver Award; 2. The Ballscrew with Dust-Proof Components was awarded the Silver Medal in the National Invention and Creation Awards by the Ministry of Economic Affairs; 3. The High-Speed EDM Milling Head RCH-100E and the Lower-Limb Rehabilitation Robot were awarded the ARSI Excellence Award and Merit Award, respectively, demonstrating HIWIN's technological strength in precision transmission, intelligent modules, and system level integration.

HIWIN also achieved significant ESG-related recognition in 2025: 1. Ranked No. 1 globally in the Machinery and Electrical Equipment industry in the Dow Jones Best-in-Class Indices (DJBIC); 2. Selected for the Business Weekly Carbon Competitiveness Top 100 for three consecutive years.; 3. Awarded the Taiwan Biodiversity Silver Award.; 4. Honored with the Taiwan Corporate Sustainability Awards(TCSA), including the Top 100 Corporate Sustainability Award and Platinum Award for Sustainability Reporting (Category 1), underscoring HIWIN's long term commitment to sustainable governance and environmental responsibility.

Looking ahead to 2026, amid a highly uncertain global economic environment, HIWIN will continue to demonstrate resilience. As U.S. tariff measures and industrial policy adjustments continue to reshape global trade and supply chain deployment, demand recovery in the Eurozone remains limited, while trends toward trade protectionism and industrial policy driven frameworks intensified, the international operating landscape is becoming increasingly complex. In response, HIWIN will further develop its core technologies, enhance system integration capabilities, and expand localized service capacity, working closely with partners across the value chain to achieve shared success and jointly create a sustainable future.

We sincerely thank all of our long-standing partners for your continued support. Moving forward, HIWIN will remain driven by innovation, fulfill its ESG commitments, and create long-term, sustainable value for all stakeholders.

We wish you every success and prosperity.

The results of the 2025 business plan are as follows:

I. 2025 Business Report

(I) Results of business plan implementation

The revenue in the consolidated financial statements for 2025 was NT$24,262,638 thousand, a decrease of 1% from NT$24,391,684 thousand in 2024; the operating profit was NT$1,643,229 thousand, a decrease of 20% from NT$2,058,785 thousand in 2024; the net profit before tax was NT$1,764,093 thousand, a decrease of 22% from NT$2,249,631 thousand in 2024; the net profit after tax attributable to the parent company was NT$1,525,866 thousand, a decrease of 23% from NT$1,971,948 thousand in 2024; the earnings per share was NT$4.31, a decrease of 23% from NT$5.57 in 2024.

(II) Analysis of financial income, expenditure and profitability

Financial incomes and expenditures

Unit: NT$ thousand

Year Item	The 2025 Certified Finance
	Amount	Percentage (%)
Operating income – net	24,262,638	100
Operating cost	17,284,790	71
Gross profit	6,977,848	29
Operating expense	5,334,619	22
Operating income	1,643,229	7
Non-operating income and expense –net	120,864	-
Net income after tax	1,410,128	6
Net income attributable to the shareholders of the parent company	1,525,866	6

Note: This statement is a consolidated financial statement. The company did not have the financial forecast disclosed for 2025; therefore, there is no disclosure of budget achievement.

Profitability analysis

Item	2025
Return on assets (%)	2.91
Return on shareholders’ equity (%)	3.78
Ratio of net income before tax to paid-in capital (%)	49.86
Net profit margin (%)	5.81
EPS (NT$)	4.31

(III)R&D Status

In 2025, R&D expenditure accounted for $4\%$ of revenue, with 77 patent applications filed and 69 patent certificates granted. As of the end of 2025, the company had a total of 1,942 patents still valid. Its R&D achievements remain unparalleled in Taiwan in the fields of metal and steel and precision machinery, maintaining its leading position.
The "Cartesian Coordinate Robot - KK Series" won the Silver Award at the 34th Taiwan Excellence Awards, and the "Lower Limb Rehabilitation Robot" won the Excellent Award for System Integration and Application at the 5th Robot Intelligent Motion System Awards.
R&D Achievements:

(1) Development of EL self-lubricating linear guide rails.
(2) Development of the MBS series of miniature ball screws.
(3) Completion of prototype development of the intelligent ball screw wireless sensing system.
(4) Mass production of composite high-speed turntables.
(5) Completion of R&D, pilot production, and customized design of the M series wafer robot.

II. 2026 business plan overview

(I) Business guidelines

Promote smart manufacturing and electromechanical integration to assist customers in transformation and upgrading, thereby driving revenue growth.
Deepen customer partnerships and provide high-value-added services through HIWIN's comprehensive solutions.
Expand global market presence, integrate group resources, and strengthen localized and on-demand service capabilities.
Implement circular economy and ESG principles, combining smart processes to enhance overall competitiveness and move towards sustainable operation.
Continuously invest in R&D and innovation: enhance the HIWIN brand value through low-carbon, high-quality products and innovative technologies.

(II) Expected sales quantities and reference

Expected sales of the Company’s major products in 2026

Unit: thousand pieces

By product	Sales volume
Ball screw	2,800~3,000
Linear guideways	36,000~40,000

Reference

The aforementioned 2026 sales volume is an estimation based on global economic trends, various industry operating environments, market supply and demand and competition; as well as, analysis of the business development of existing customers and the solicitation of potential customers, and taking into account many factors crucial to the balance of production and sales.

(III) Important production and sales policies

Technological Innovation and Product Optimization: Increase market share and strengthen brand competitiveness.
Promoting High-End Products and Total Solutions: Enhance market differentiation and create higher added value for customers.
Collaborating with Global Strategic Partners: Provide intelligent automation solutions for industries, expanding services to B2B2C.
Implementing Green Manufacturing Technologies: Strengthen low-carbon production and energy conservation and emission reduction, driving sustainable industrial transformation.
Flexible Adjustment of Production and Sales Strategies: Adapt flexibly to market fluctuations, ensuring supply and demand balance and operational resilience.
Lean Supply Chain Management: Optimize material, production, and sales adjustment mechanisms to ensure competitive delivery times and inventory management.

(IV) Further development strategy of the Company

Focus on high-end and trending industries, integrate group resources, and provide modular and electromechanical integration solutions to create high added value.
Deepen the R&D of smart machinery and expand the application scope of smart products in the semiconductor and diversified industries.
Strengthen the industrial ecosystem layout, cooperate with upstream and downstream partners and end customers to build a service system.
Expand into the fields of AI and robotics, increase cooperation with industry partners, provide core technologies and products, and explore the global AI application market.
Strengthen the global distribution system, deepen local technical support and integration capabilities, and increase service penetration.
Expand global localized production capacity to flexibly respond to and meet customer customization needs.
Accelerate the layout of emerging markets and seize the growth opportunities brought about by supply chain migration.
Drive business model innovation, accelerate AI, digital transformation and business growth, and implement long-term sustainable development goals.

(V) The effect of external competition, the legal environment, and the overall business environment

Looking ahead to 2026, a moderate global inflation is expected, major central banks' monetary policies are gradually shifting towards neutral, and the overall economy is projected to experience a moderate recovery, driven by continued expansion in technology investment. Major international institutions generally forecast global GDP growth between 2.7% and 3.3% in 2026, although growth momentum will vary due to regional differences and policy uncertainties. The US will benefit from reindustrialization policies and continued investment in AI and advanced manufacturing, with semiconductor equipment, automation, and new energy-related industries maintaining growth. Europe is gradually improving under the support of energy transition and green subsidy policies, but some countries still face industrial restructuring and fiscal pressures. China and emerging Asian markets are showing relatively robust recovery momentum in some industries, supported by a rebound in manufacturing demand, technology investment, and domestic demand policies.

In terms of technology and capital expenditure, generative AI, semiconductor equipment, advanced packaging, industrial automation, robotics, and smart manufacturing remain the main drivers of global investment. Applications in AI infrastructure, data centers, new energy vehicles, and battery production lines are driving continued growth in demand for high-precision, high-rigidity, high-load, and high-reliability key components, and propelling upgrades in equipment and modular solutions.

Simultaneously, the gradual implementation of net-zero emission policies and carbon border adjustment mechanisms in various countries is prompting companies to accelerate the adoption of energy-saving equipment, low-carbon processes, circular materials, and smart energy management systems, resulting in steady growth in the green equipment and sustainable manufacturing market.

However, global operational risks continue to rise. The Trump administration's tariffs, the Iran war, geopolitical tensions, regional conflicts, trade policy adjustments, uncertainties in energy and logistics supply, and the increasing frequency of extreme weather events all pose challenges to the stability of global supply chains. Furthermore, increasingly stringent ESG, supply chain due diligence, and information disclosure regulations require companies to invest more resources to meet compliance and sustainability requirements.

In response to these environmental changes, HIWIN Technologies will continue to deepen its electromechanical integration technology and advanced intelligent products, while seizing opportunities in green supply chains and smart manufacturing trends to drive process optimization, energy efficiency improvements, and low-carbon product development. In terms of global operations, we continue to expand our overseas presence, strengthen local technical services and supply chain resilience management to ensure stable supply and enhance service momentum in the global market, maintaining the company's long-term steady development in an environment of moderate growth and coexisting risks.

Chairman & CEO

Eddie W. H. Chuo

Two. Corporate Governance Report

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

(I) Information on directors

March 31, 2026
Unit: Shares; %

Title	Nationality or place of registration	Full name	Gender / Age	Date elected or appointed	Term of office	Date first elected or appointed	Shareholding when elected or appointed		Current Shareholding		Current shareholding of spouse and minor children		Shareholding in the name of others		Main experience (education) Main experience/ education	Concurrent positions in the Company and other companies now	Spouse or relatives within the second degree of kinship who are officers, directors, or supervisors of the Company			Remark
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
Chairman	Republic of China	Eddie W. H. Chuo	Male 51-60 years old	20250528	3 years	19930816	6,845,702	1.93%	6,845,702	1.93%	2,220,676	0.62%	-	-	Masters of Business Administration at Dominican University Honorary Doctor of Engineering, National Formosa University Executive VP of HIWIN TECHNOLOGIES CORP. Co-CEO	Chairman and Co-Executive Officer of HIWIN Technologies Corp. Chairman and CEO of Matrix Precision Co., Ltd. Chairman of HIWIN Investment and Holding Corp. Chairman of HIWIN Corporate Management Co., Ltd. Chairman of HIWIN USA Chairman of HIWIN Germany Chairman of Yong-Yin Investment and Holding Corp. Board Director of HIWIN Japan Board Director of HIWIN Singapore Board Director of HIWIN Korea Board Director of HIWIN Italy Board Director of Matrix Machine Tool (Coventry) Ltd. Board Director of Ever Fortune. Al Co. Ltd. (Corporate Representative) Board Director of HIWIN Education Foundation Member of the Sustainable Development and Cybersecurity Committee, HIWIN Technologies Corp. Holding positions in associations: - Convenor of the Supervisory Board, Taiwan Machine Tool & Components Manufacturers Association - Standing Director, Taiwan Machinery Industry Association - Director, Cross-Strait Entrepreneurs Summit - Honorary Advisor, Chinese Mechanical Engineering Society	Director	Eric Y.T. Chuo Olivia S.Y. Chuo	Father and son Brothers and sisters

Title	Nationality or place of registration	Full name	Gender / Age	Date elected or appointed	Term of office	Date first elected or appointed	Shareholding when elected or appointed		Current Shareholding		Current shareholding of spouse and minor children		Shareholding in the name of others		Main experience (education) Main experience/ education	Concurrent positions in the Company and other companies now	Spouse or relatives within the second degree of kinship who are officers, directors, or supervisors of the Company
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
Director	Republic of China	Eric J.T. Chao	Male Over 81 years old	20250528	3 years	19890926	10,990,759	3.10%	9,490,759	2.68%	1,000,320	0.28%	-	-	Master of Public Administration, University of San Francisco Honorary Doctor of Engineering, National Kaohsiung University of Science and Technology Honorary Doctor of Management, National Chung Cheng University Honorary Doctor of Engineering, Taiwan University of Technology Honorary Doctor of Philosophy, National Tsing Hua University Honorary Doctor of Science, China Medical University Honorary Doctor of Engineering, National Taiwan University Chairman, HIWIN Technologies Corp. Chairman, Matrix Precision Co., Ltd. Corporate Chairman, HIWIN Mikrosystem Ltd.	Board Director and CEO of HIWIN Technologies Corp. Legal Representative of Director and Co-Executive Officer of HIWIN Mikrosystem Corp. Legal Representative of Director and Co-Executive Officer of Matrix Precision Co., Ltd Board Director of HIWIN Investment and Holding Corp. Board Director of HIWIN Education Foundation Board Director of Asia University, Taiwan	Chairman Director	Eddie W. H. Chao
Olivia S.Y. Chao	Father and son
Father and daughter	-

Title	Nationality or place of registration	Full name	Gender / Age	Date elected or appointed	Term of office	Date first elected or appointed	Shareholding when elected or appointed		Current Shareholding		Current shareholding of spouse and minor children		Shareholding in the name of others		Main experience (education) Main experience/ education	Concurrent positions in the Company and other companies now	Spouse or relatives within the second degree of kinship who are officers, directors, or supervisors of the Company
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
Director	Republic of China	Enid H.C. Tsai	Female 61-70 years old	20250528	3 years	19890926	4,132,740	1.16%	4,132,740	1.16%	-	-	-	-	PhD in Organizational Psychology, Philips Academy Executive VP of HIWIN TECHNOLOGIES CORP. Co-CEO Chairman of Taiwan Excellence Brand Association (TEBA)	Board Director, President and Co-Executive Officer of HIWIN Technologies Corp. Chairman and Chief Executive Officer of HIWIN Education Foundation Chairman of HIWIN Samoa Chairman and Representative Director of HIWIN Technologies Corp. Board Director of HIWIN USA Board Director of HIWIN China Board Director of HIWIN Korea Board Director of HIWIN Investment and Holding Corp. Board Director of Taiwan Design Research Institute (TDRI) Executive Director of Precision Machinery Research Development Center (PMC) Director of Higher Education Evaluation and Accreditation Council of Taiwan	-	-
Director	Republic of China	Olivia S.Y. Chuo	Female 51-60 years old	20250528	3 years	20220627	5,358,912	1.51%	5,358,912	1.51%	7,061	20220627	-	-	MBA in Finance Management, Bernard M. Baruch College, CUNY Secretary, CFO Office, Bank SinoPac Vice Chairman, HIWIN Mikrosystem Ltd.	Board Director of HIWIN Technologies Corp. Chairman and Executive Officer of HIWIN Mikrosystem Corp. Vice Chairman and Co-Executive Officer of Matrix Precision Co., Ltd Board Director of HIWIN Japan Board Director of HIWIN USA Board Director of HIWIN Germany Board Director of HIWIN Singapore Board Director of HIWIN Investment and Holding Corp. Board Director of HIWIN Corporate Management Co., Ltd. Supervisor of Yong-Yin Investment and Holding Corp.	Chairman Director	Eddie W. H. Chuo
Eric Y.T. Chuo	Brothers and sisters,
Father and daughter

Title	Nationality or place of registration	Full name	Gender / Age	Date elected or appointed	Term of office	Date first elected or appointed	Shareholding when elected or appointed		Current Shareholding		Current shareholding of spouse and minor children		Shareholding in the name of others		Main experience (education) Main experience/ education	Concurrent positions in the Company and other companies now	Spouse or relatives within the second degree of kinship who are officers, directors, or supervisors of the Company			Remark
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
Director	Republic of China	Chin-Tsai Chen	Male 71-80 years old	20250528	3 years	19891203	4,053,411	1.14%	4,053,411	1.14%	3,303,830	0.93%	-	-	Master of Public Administration, University of San Francisco Master of Accounting, Institute of Accounting, Tamkang University Tamkang University Honorary doctor Honorary Doctor of Medicine Taipei Medical University Director, NAMCHOW Group President, NAMCHOW Group	Vice-Chairman of HIWIN Technologies Corp. Chairman and President of WIN Semiconductors Chairman of ITEQ Corporation Chairman of Winying Venture Capital (Co., Ltd.) (Legal representative) Chairman of Winan Investment (Co., Ltd.) (Legal representative) Chairman of Winjen Investment (Co., Ltd.) (Legal representative) Chairman of Bonnow Investment (Legal representative) Chairman of WinLux Biomedical Technology (Legal representative) Chairman of Paper Windmill Cultural and Educational Foundation Directorships: - Hualian Biotechnology Co., Ltd. (Legal Representative) - Hualian Gene Co., Ltd. (Legal Representative) - Jianzhong Cell Biomedical Co., Ltd. - Modern Finance Foundation ESG World Citizen Digital Governance Foundation Honorary Director Invincible Technology Co., Ltd. (Independent Director) Supervisory Roles: - Shijia Sports Equipment Co., Ltd. - Lianxing Sports Equipment Co., Ltd.	-	-	-	-
Director	Republic of China	Sanko Investments Ltd.	-	20250528	3 years	20040630	4,285,730	1.21%	4,335,730	1.22%	-	-	-	-	Supervisor, HIWIN Technologies Corp.	Director of TUNG KANG INDUSTRIAL CO., LTD.	-	-	-	-
		Representative: Ching-Yi Huang	Female 51-60 years old	20250528		20190928	322	0.00%	322	0.00%	-	-	-	-	Department of International Trade, Fu Jen Catholic University MBA, Old Dominion University, Virginia, USA	Serving as chairman of: - Sanko Investments Ltd. - Taipei Sanxing Charity Foundation Supervisor of: -SUN RICH STEEL INDUSTRIAL CO., LTD -Mingcang Investment Co., Ltd.	-	-	-	-

Title	Nationality or place of registration	Full name	Gender / Age	Date elected or appointed	Term of office	Date first elected or appointed	Shareholding when elected or appointed		Current Shareholding		Current shareholding of spouse and minor children		Shareholding in the name of others		Main experience (education) Main experience/ education	Concurrent positions in the Company and other companies now	Spouse or relatives within the second degree of kinship who are officers, directors, or supervisors of the Company			Remark
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
Director	Republic of China	Cheng-Lun Lee	Male 41-50 years old	20250528	3 years	20250528	563,555	0.15%	563,555	0.15%	-	-	-	-	Bachelor of Arts, University of Sydney, Australia General Manager, Zhengjie Enterprise Co., Ltd. General Manager, Zhenyong Co., Ltd.	Member of the Sustainable Development and Cybersecurity Committee of HIWIN Technologies Corp. General Manager of Naiqiang Co., Ltd.	-	-	-
Independent director	Republic of China	Cheng-Ho Chiang	Male 61-70 years old	20250528	3 years	20080624	-	-	-	-	242,489	0.06%	-	-	Master of Administrative Management, National Chengchi University Chief Auditor, Audit Division, Board of Directors, Taiwan Financial Holding Co., Ltd. Chief, Financial Examination Bureau and Banking Bureau, Financial Supervisory Commission	Convenor of the Audit and Risk Management Committee of HIWIN Technologies Corp., Ltd. Member of the Remuneration and Nomination Committee of HIWIN Technologies Corp., Ltd.	-	-	-	-

Title	Nationality or place of registration	Full name	Gender / Age	Date elected or appointed	Term of office	Date first elected or appointed	Shareholding when elected or appointed		Current Shareholding		Current shareholding of spouse and minor children		Shareholding in the name of others		Main experience (education) Main experience/ education	Concurrent positions in the Company and other companies now	Spouse or relatives within the second degree of kinship who are officers, directors, or supervisors of the Company
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
Independent director	Republic of China	Zhen-Yuan Chen	Male 61-70 years old	20250528	3 years	20220627	-	-	-	-	-	-	-	-	Master of Finance and PhD from the University of Texas at Dallas; Master of Business Administration from National Chengchi University; President of I-Shou University; President of National Kaohsiung First University of Science and Technology; CEO of the Higher Education Evaluation Center; Independent Director of Taiwan Tobacco & Liquor Corporation; Director of the Insurance Stability Foundation; Director of the Chung-Wei Development Center; Director of the HIWIN Technology Education Foundation; Director of the Private School Retirement Savings Fund Management Committee.	Convenor of the Sustainable Development and Cybersecurity Committee, HIWIN Technologies Corp. Member of the Audit and Risk Management Committee and the Remuneration and Nomination Committee, HIWIN Technologies Corp. President of China University of Science and Technology Chairman of the Management Science Society of the Republic of China Vice Chairman of the Taipei Independent Directors Association Director of the Taiwan Appraisal Association Director of the CTBC Education Foundation Supervisor of the Financial Consumer Review Center Standing Supervisor of the Taiwan Small and Medium Enterprise Counseling Foundation Chairman of the Management Independent Director of Home Depot Corp.	-	-	-
Independent director	Republic of China	Hui-Xiu Lee	Female 61-70 years old	20250528	3 years	20220627	-	-	-	-	-	-	-	-	EMBA, College of Management, National Taiwan Normal University Taipei Branch, Mega International Commercial Bank Vice Manager	Convenor of the Remuneration and Nomination Committee of HIWIN Technologies Corp., Ltd. Member of the Audit and Risk Management Committee of HIWIN Technologies Corp., Ltd.	-	-

Note : Where the Chairman and General Manager or the person of an equivalent position (the managerial officer at the highest level) are the sane person, spouses, or relatives within the first degree of kinship: None

Major shareholders of corporate shareholders

March 31, 2026

Names of corporate shareholders	Major shareholders of corporate shareholders
Sanko Investments Ltd.	Jing-Yi Huang	33.33%
	Yi-Cang Huang	33.33%
	Shao-Yu Huang	33.33%

Information disclosure of directors' professional qualification and independent directors' independence

Conditions Full name	Professional qualification and experience	Independence	Other public companies in which serving as an independent director
Chairman: Eddie W. H. Chuo	For the professional qualifications and experience of the directors, please refer to "II.(I)Information of the Directors" of this annual report (P.9-10). •There is none of the circumstances as stated in Article 30 of the Company Act to the directors of the Company.	Not Applicable	0
Director: Eric Y.T. Chuo			0
Director: Enid H.C. Tsai			0
Director: Olivia S.Y. Chuo			0
Director: Chin-Tsai Chen			1
Director: Corporate representative of Sanko Investment Co., Ltd.: Jing-Yi Huang			0
Director Cheng-Lun Lee			0
Independent director: Cheng-Ho Chiang		Being an independent director and complying with the independence circumstances stipulated in Article 14-2 of the Securities and Exchange Act and the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” (Note), including but are not limited to: 1. Information on the shareholding, 242,489 shares, and shareholding ratio (0.06%) of the natural-person shareholder, spouse, and relatives within the second degree of kinship (in the name of others), which is less than 1% and in compliance with the requirement of independence of independent directors; 2. There has been no remuneration received for providing business, legal, financial, accounting, and other related services to the company or its affiliated enterprises in the last 2 years.	0
Independent Director: Zhen-Yuan Chen	Being an independent director and complying with the independence circumstances stipulated in Article 14-2 of the Securities and Exchange Act and the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” (Note), including but are not limited to: 1. The independent director himself, spouse, and relatives within the second degree of kindship (in the name of others) do not hold shares of the company 2. There has been no remuneration received for providing business, legal, financial, accounting, and other related services to the company or its affiliated enterprises in the last 2 years.	1
Independent director: Hui-Xiu Lee		0

Note: 1. Not a government, corporate, or its representative as defined in Article 27 of the Company Act.
2. Not serving as an independent director of more than three other public companies

There is not any of the following circumstances occurred during the two years before being elected or during the term of office:

(1) An employee of the company or any of its affiliates;
(2) A director or supervisor of the company or any of its affiliates (However, it does not apply to independent directors appointed in accordance with the Act or the laws and regulations of the local country by, and concurrently serving as such at, a public company and its parent or subsidiary or a subsidiary of the same parent.);
(3) A natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of 1% or more of the total number of issued shares of the company or ranking the top-10 in shareholdings;
(4) A spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of a managerial officer in subparagraph 1 or any of the persons in subparagraphs (2) and (3);
(5) A director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the total number of issued shares of the company, or that ranks among the top five in shareholdings, or that designates its representative to serve as a director of the company under Article 27, of the Company Act;
(6) A director, supervisor, or employee of a company that has a majority of its director seats or voting shares controlled by the same person as those of the company;
(7) A director (executive), supervisor (supervisor) or employee of another company or institution who is the same person or spouse of the company's Chairman, President, or person with equivalent positions;
(8) A director (executive), supervisor (supervisor), managerial officer, or shareholder holding 5% or more of the shares of a specified company or institution that has a financial or business relationship with the company;
(9) A professional individual who, or an owner, partner, director (executive), supervisor (supervisor), or managerial officer of a sole proprietorship, partnership, company, or institution that, provides auditing services to the company or any affiliate of the company, or that provides commercial, legal, financial, accounting or related services to the company or any affiliate of the company for which the provider in the past 2 years has received cumulative compensation exceeding NT$500,000, or a spouse thereof; provided, this restriction does not apply to a member of the company's remuneration committee;

Diversity and Independence of the Bord of Directors:

(1) Diversity of the Bord of Directors:

① Policies

According to Article 20 of the company's "Corporate Governance Best Practice Principles," the diversity of board directors shall be considered at the time of its composition. Board directors with diverse backgrounds and perspectives shall be selected based on the company's operations, nature of business, development needs, etc., which include but not limited to gender, age, nationality, culture, professional background (such as law, accounting, industry, finance, marketing, and technology), professional skills, industrial experience, etc. The election of the company's directors is stipulated in Article 2 of the "Procedures for Election of Directors" with the overall composition of the Board of Directors taken into consideration. In addition, the company appreciates the importance of gender equality in the composition of the Board of Directors. There are currently 10 directors on the Board of Directors to serve, including 4 female directors, which accounted for 40% of the board members. The company also evaluates the management capabilities, crisis management ability, financial accounting professional, and many other aspects at the time of electing board directors. There should be at least 3 people qualified for each competency item in order to substantiate the company's policy of board director diversity. The specific implementation is as follows, all of which are in line with the company's management objectives:

In addition, candidates to be considered for the nomination of board directors shall also have a reputation of ethics and integrity, have outstanding achievements, experience, and reputation in various professional fields, be able to devote sufficient time to participate in supervising the company's business, have the ability to assist in operation and management, can make contributions to the success of the company, etc. The qualifications of independent directors should comply with the governing law and regulations.

② Specific management objectives:

The company's Board of Directors should guide the company's strategy, supervise the management, and be responsible to the company and shareholders. It is necessary to ensure that the Board of Directors has the operations and arrangements of the corporate governance system implemented in accordance with law and regulations, the company's Articles of Incorporation, or the resolutions of the shareholders' meeting. In addition, the diversity of board directors should be considered at the time its composition with the company's operation, business model, and future development trends taken into consideration. Regarding the diversified professional knowledge and skills, there should be at least 3 people qualified for each competency item. In addition, gender equality in the composition of the Board of Directors is also essential to the company. The goal is to have at least 3 female directors elected.

③ Achievements

HIWIN’s board directors have extensive experience and expertise in finance, business, and management. In addition, the company appreciates the importance of gender equality in the composition of the Board of Directors. There are currently 10 directors on the Board of Directors to serve, including 4 female directors, which accounted for 40% of the board members. The company also evaluates the management capabilities, crisis management ability, financial accounting professional, and many other aspects at the time of electing board directors. There should be at least 3 people qualified for each competency item in order to substantiate the company’s policy of board director diversity. The specific implementation is as follows, all of which are in line with the company’s management objectives:

Management objectives	Achievements
Sufficient and diverse professional knowledge and skills	Achieved
Three female board directors	Achieved

The company’s implementation of the board director diversity policy is as follows:

Name of Director	Nationality	Gender	Age	Concurrent employee of the Company	Term of office of independent directors	Professional background	Have working experience in GICS industrial category (note)
Eddie W.H. Chuo	Republic of China	Male	51-60 years old	V		Business management	Industry, Healthcare, Information Technology
Eric Y.T. Chuo	Republic of China	Male	Over 81 years old	V		Accounting, Finance, and Business Management	Industry, Healthcare, Finance, Information Technology
Enid H.C. Tsai	Republic of China	Female	61-70 years old	V		Brand Management	Industry, Healthcare, Information Technology
Olivia S.Y. Chuo	Republic of China	Female	51-60 years old			Finance, and Business Management	Industry, Finance, Information Technology
Chin-Tsai Chen	Republic of China	Male	71-80 years old			Accounting and business management	Finance, Information Technology
Corporate representative of Sanko Investment Co., Ltd. Jing-Yi Huang	Republic of China	Female	51-60 years old			Business management	Raw Materials, Finance
Cheng-Lun Lee	Republic of China	Male	41-50 years old			Business management	Finance
Cheng-Ho Chiang	Republic of China	Male	61-70 years old		Note 2	Finance	Finance
Zhen-Yuan Chen	Republic of China	Male	61-70 years old		4 years	Accounting and business management	Consumer Discretionary Goods
Hui-Xiu Lee	Republic of China	Female	61-70 years old		4 years	Finance	Finance

Note 1: The industry category is classified in accordance with Level-1 industry sector of the GICS Global Industry Classification Standard.
Note 2: Mr. Cheng-Ho Chiang previously served as the chief auditor of Taiwan Financial Holding Company and has extensive experience in finance, auditing, risk management and the financial industry. Although he has served as an independent director of the company for three consecutive terms, the company still needs to rely on his expertise to provide the board of directors with supervision and professional advice.

Name of Director	Operational judgments	Accounting and finance	Business management	Crisis management	Knowledge of the industry	An international market perspective	Ability to lead	Ability to make policy decisions
Eddie W.H. Chuo	V	V	V	V	V	V	V	V
Eric Y.T. Chuo	V	V	V	V	V	V	V	V

Name of Director	Operational judgments	Accounting and finance	Business management	Crisis management	Knowledge of the industry	An international market perspective	Ability to lead	Ability to make policy decisions
Enid H.C. Tsai	V		V	V	V	V	V	V
Olivia S.Y. Chuo	V	V	V	V	V	V	V	V
Chin-Tsai Chen	V	V	V	V	V	V	V	V
Sanko Investments Ltd. Corporate Representative Jing-Yi Huang	V	V		V		V		V
Cheng-Lun Lee	V		V	V		V	V	V
Cheng-Ho Chiang	V	V		V	V	V	V	V
Zhen-Yuan Chen	V	V	V	V		V	V	V
Hui-Xiu Lee	V	V		V		V	V	V
Goal of seats	3	3	3	3	3	3	3	3
Seats achieved	10	8	7	10	6	10	9	10
Achievement rate	100%	100%	100%	100%	100%	100%	100%	100%

(2) Diversity and Independence of the Bord of Directors:

According to the provision of Article 5 of the company's "Procedures for Election of Directors," the company's directors shall be elected in accordance with the candidate nomination system procedures stipulated in Article 192-1 of the Company Act, and shall be selected by shareholders from a list of candidates; also, no more than half of the board directors can be spouses or relatives within the second degree of kinship to one another. According to the provision of Article 15 of the company's "Rules of Procedure for Board of Directors Meetings," with regard to meeting matters, for those who have an interest in themselves or the legal persons they represent, spouses of directors, blood relatives within the second degree of kinship, or companies with controlling and subordinate relationships with directors, the director shall state the important aspects of the interested party relationship at the respective meeting. When the relationship is likely to prejudice the interest of the company, that director may state opinions and answer questions but may not participate in discussion or voting on that proposal and shall recuse himself or herself from the discussion or the voting on the proposal, and may not exercise voting rights as proxy for another director.

The company has established an Audit Committee, a Remuneration Committee, and a Nomination Committee under the Board of Directors to enhance the operational effectiveness of the Board of Directors and to substantiate a good board governance system. The said three committees are composed of all independent directors to assist the Board of Directors in decision-making through professional division of labor and a detached and independent stance in order to improve supervision functions and enhance management mechanisms; also, to implement corporate governance actively.

The company adopted a candidate nomination system for the director election in 2022. Ten board directors are elected from the candidate list to serve as the 12th Board of Directors. The elected 10 board directors include 7 non-employee directors, accounted for $70\%$ , and 3 independent directors, accounted for $30\%$ ; also, there are 3 directors who are relatives within the second degree of kinship to one another, accounted for $30\%$ . The independent directors are not spouses or relatives within the second degree of kinship to one another; also, the independent directors and directors are not spouses or relatives within the second degree of kinship to one another, which complies with the provision of Article 26-3, Paragraph 3 and Paragraph 4 of the Securities and Exchange Act. There is no occurrence of any of the circumstances as stated in Article 30 of the Company Act to the directors of the company. All independent directors comply with the relevant standards set by the Financial Supervisory Commission.

(II) Information on the company's general manager, assistant general managers, deputy assistant general managers, and the chiefs of all the company's divisions and branch units
March 31, 2026

Title	Nationality	Name	Gender	Date of appointment to position (Note 1)	Shareholding when elected or appointed		Shares held by spouse and minor children		Shareholding in the name of others		Main experience (education)Main experience/education	Positions concurrently held in other companies at present	Other managerial officer(s) with which the person has a relationship of spouse or relative within the second degree			Remarks (Note 2)
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
Global CEO	Republic of China	Eddie W.H. Chuo	Male	20250528	6,845,702	1.93%	2,220,676	0.62%	-	-	Masters of Business Administration at Dominican University Honorary Doctor of Engineering, National Formosa University Executive VP of HIWIN TECHNOLOGIES CORP. Co-CEO of HIWIN TECHNOLOGIES CORP.	Chairman and Co-Executive Officer of HIWIN Technologies Corp. Chairman and CEO of Matrix Precision Co., Ltd. Chairman of HIWIN Investment and Holding Corp. Chairman of HIWIN Corporate Management Co., Ltd. Chairman of HIWIN USA Chairman of HIWIN Germany Chairman of Yong-Yin Investment and Holding Corp. Board Director of HIWIN Japan Board Director of HIWIN Singapore Board Director of HIWIN Korea Board Director of HIWIN Italy Board Director of Matrix Machine Tool (Coventry) Ltd. Board Director of Ever Fortune. AI Co. Ltd. (Corporate Representative) Board Director of HIWIN Education Foundation Member of the Sustainable Development and Cybersecurity Committee, HIWIN Technologies Corp. Holding positions in associations: - Convenor of the Supervisory Board, Taiwan Machine Tool & Components Manufacturers Association - Standing Director, Taiwan Machinery Industry Association - Director, Cross-Strait Entrepreneurs Summit - Honorary Advisor, Chinese Mechanical Engineering Society	CEO	Eric Y.T. Chuo	Father and son	-

Title	Nationality	Name	Gender	Date of appointment to position (Note 1)	Shareholding when elected or appointed		Shares held by spouse and minor children		Shareholding in the name of others		Main experience (education)Main experience/education	Positions concurrently held in other companies at present	Other managerial officer(s) with which the person has a relationship of spouse or relative within the second degree
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
CEO	Republic of China	Eric Y.T. Chuo	Male	20250528	9,490,759	2.68%	1,000,320	0.28%	-	-	Master of Public Administration, University of San Francisco
Honorary Doctor of Engineering, National Kaohsiung University of Science and Technology
Honorary Doctor of Management, National Chung Cheng University
Honorary Doctor of Engineering, Taiwan University of Technology
Honorary Doctor of Philosophy, National Tsing Hua University
Honorary Doctor of Science, China Medical University
Honorary Doctor of Engineering, National Taiwan University Chairman, Global CEO, HIWIN Technologies Corp. Chairman, Matrix Precision Co., Ltd. Chairman, HIWIN Mikrosystem Ltd. Chairman	CEO of HIWIN Technologies Corp.
Director of:
- Corporate Representative
Director concurrent Co-CEO of HIWIN Mikrosystem Ltd.
- Corporate Representative and Co-CEO, Matrix Precision Co., Ltd.
- HIWIN Investment Corporation
- HIWIN Education Foundation
- Asia University	Chairman and Co-CEO	Eddie W.H. Chuo	Father and son	-
General Manager and Sustainable Development Manager	Republic of China	Enid H.C. Tsai	Female	20250528	4,132,740	1.16%	-	-	-	-	PhD in Organizational Psychology, Philips Academy Executive Vice President, General Manager and Co-CEO of HIWIN Technologies Corp. Director, Taiwan Excellent Brand Association (TEBA)	General manager and Co-CEO, HIWIN Technologies Corp. Serving as chairman of:
- HIWIN (Samoa)
- HIWIN Education Foundation
CEO
Representative Director (Chairman) of HIWIN Japan Director of:
- HIWIN Corporation, U.S.A.
- HIWIN China
- HIWIN Corporation, Korea
- HIWIN Investment Corporation	-

Title	Nationality	Name	Gender	Date of appointment to position (Note 1)	Shareholding when elected or appointed		Shares held by spouse and minor children		Shareholding in the name of others		Main experience (education)Main experience/education	Positions concurrently held in other companies at present	Other managerial officer(s) with which the person has a relationship of spouse or relative within the second degree			Remarks (Note 2)
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
												Director, Taiwan Design Research Institute Managing Director, Precision Machinery Research and Development Center (PMC) - Director, Higher Education Evaluation Center Foundation
Executive Assistant General Manager, Chairman's Office	Republic of China	Ming-Yao Lin	Male	20240401	12,373	0.00%	143,047	0.04%	-	-	Master of Mechanical Engineering, National Taiwan University of Science and Technology MBA, Tulane University, USA Executive VP of HIWIN General manager, Eterbright Solar Corp.	Liquidator, Eterbright Solar Corp. Director of the HIWIN Technology Education Foundation	-	-	-	-
Senior Vice President, Finance Division	Republic of China	Yue-Chin Wu	Female	20200401	214,918	0.06%	-	-	-	-	Master of Business Administration at Feng Chia University Vice President of HIWIN Technologies Corp.	Supervisor of: - HIWIN China - Matrix Precision Co., Ltd.	-	-	-	-
Senior Vice President, Marketing Business Group	Republic of China	Yan-Qi Peng	Female	20211105	34,077	0.00%	-	-	-	-	Master of Computer Science and Information Engineering at University of South California Vice President of HIWIN Technologies Corp.	Corporate Director Representative, HIWIN Mikrosystem Ltd. Chairman, HIWIN China Director, HIWIN Corporation, U.S.A.	-	-	-	-
Deputy General Manager of the Chairman's Office	Republic of China	Ke-Huang Liao	Male	20250601	48,445	0.01%	-	-	-	-	Master of Accounting, National Chung Hsing University Executive Assistant Vice President of HIWIN Technologies Corp.	Director of: HIWIN GmbH (Germany) - HIWIN S.R.L Italy - HIWIN Education Foundation Supervisor of: - HIWIN Corporation, Japan - Eterbright Solar Corp. - Matrix Suzhou Co., Ltd.	-	-	-	-
Deputy General Manager of the Chairman's Office	Republic of China	Wen-Bin Lee	Male	20250601	16,174	0.00%	-	-	-	-	Master of Mechanical Engineering at Feng Chia University	-	-	-	-	-

Title	Nationality	Name	Gender	Date of appointment to position (Note 1)	Shareholding when elected or appointed		Shares held by spouse and minor children		Shareholding in the name of others		Main experience (education)Main experience/education	Positions concurrently held in other companies at present	Other managerial officer(s) with which the person has a relationship of spouse or relative within the second degree			Remarks (Note 2)
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Full name	Relationship
											Executive Assistant Vice President of HIWIN Technologies Corp.
Assistant General Manager, Chairman's Office	Republic of China	Jun-Liang Wu	Male	20180201	20,826	0.00%	-	-	-	-	Master of Industrial Engineering, National Tsing Hua University Assistant Vice President of HIWIN Technologies Corp.	-	-	-	-	-
Assistant General Manager, Chairman's Office	Republic of China	Chuang-Bao Yang	Male	20200401	6,419	0.00%	13,761	0.00%	-	-	Master of Mechanical Engineering, National Chung Hsing University Senior Assistant Vice President of HIWIN Technologies Corp.	Director and General Manager of HIWIN Italy	-	-	-	-
Assistant General Manager, System Development Business Division	Republic of China	Fu-Qing Wang	Male	20190301	51,452	0.01%	-	-	-	-	PhD of Mechanical Engineering, National Chung Cheng University Assistant Vice President of HIWIN Technologies Corp.	Vice President, Matrix Precision Co., Ltd.	-	-	-	-
Assistant General Manager, Chairman's Office	Republic of China	Shi-Rong Chiu	Male	20211105	0	0.00%	5,618,527	1.58%	-	-	Master of Business Administration at University of Massachusetts, USA Assistant Vice President of HIWIN Technologies Corp.	Director concurrent President, HIWIN Corporation, U.S.A.	-	-	-	-
Assistant General Manager, Finance Division	Republic of China	Hong-Ming Chen	Male	20240401	16,690	0.00%	-	-	-	-	Graduated from Department of Accounting, National Taiwan University Assistant Vice President of HIWIN Technologies Corp. President, HIWIN China	Director of Matrix Suzhou Co., Ltd	-	-	-	-

Note 1: It indicates the inauguration date of the current positions.
Note 2: Where the General Manager or the person of an equivalent position (the managerial officer at the highest level) are the sane person, spouses, or relatives within the first degree of kinship: None
Note 3: It indicates persons currently holding the positions as of March 31, 2026.

II. Remuneration paid during the most recent fiscal year to directors, the general manager, and assistant general managers

(I) Remuneration of Directors and Independent Directors

Unit: NT$ thousand

Job title	Full name	Director's Remuneration							(A+B+C+D) as a % of Net Income	Relevant Remunerations Received by Directors as concurrent employee									(A+B+C+D+E+F+G) as a % of Net Income	Remuneration received from investee enterprises other than subsidiaries or from the parent company
		Base compensation (A)		Retirement pay and pension (B)		Director profit-sharing compensation (C)		Expenses and perquisites (D)			Salary, rewards, and special disbursements (E) (Note 1)		Retirement pay and pension (F)		Employee profit-sharing compensation (G) (Note 2)
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities			The Company	All consolidated entities
																Amount in cash	Amount in shares	Amount in cash	Amount in shares
Director	Eddie W.H. Chuo	0	714	0	0	16,721	16,721	360	21,990	17,081 1.12%	39,425 2.58%	49,016	58,116	535	535	5,700	0	5,700	0	108,737 7.13%	141,740 9.29%	29,465
	Eric Y.T. Chuo	0	975	0	0	35,635	35,635	770	1,354	36,405 2.39%	37,964 2.49%
	Enid H.C. Tsai
	Olivia S.Y. Chuo
	Chin-Tsai Chen
	Sanko Investments Ltd. Representative: Ching-Yi Huang
	Cheng-Lun Lee(Note 4)
Shun-Chin Lee(Note 5)
Independent Director	Cheng-Ho Chiang	7,200	7,200	0	0	5,574	5,574	360	360	13,134 0.86%	13,134 0.86%	0	0	0	0	0	0	0	13,134 0.86%	13,134 0.86%	0
	Zhen-Yuan Chen
	Hui-Xiu Lee
1. Please state the policy, standards and structure of independent directors' remuneration payment, and describe relevance to the amount of remuneration according to the responsibilities, risks, time invested and other factors: The remuneration of independent directors of the company refers to the Company's overall operating performance, future risks and development trends of the industry, also refers to the results of the performance evaluation standards and the contribution to the company to give reasonable remuneration. The Remuneration Committee makes recommendations to the board of directors for resolution. 2. In addition to the disclosures in the above table, the directors of the Company have received remuneration for providing services for all companies in the financial report (such a serving as consultants for non-employees) in the most recent fiscal year: None.

Note 1: Includes vehicle allocation cost of NTS2,637,000, but excludes dedicated driver annual income of NTS3,021,000.
Note 2: NTS115,859,000 in employee compensation is allocated for 2025. As of the date of this annual report, the list of employees to receive compensation has not yet been determined; therefore, the proposed allocation for this year is calculated based on the actual allocation ratio of previous years.
Note 3: Remuneration and business execution fees received by Directors Eric Y.T. Chuo, Olivia S.Y. Chuo, and Cheng-Lun Lee, who respectively serve as co-CEO, CEO, and legal representative director of HIWIN Microsystems Co., Ltd.
Note 4: Director Cheng-Lun Lee assumed office on May 28, 2025; the disclosed amount is remuneration received after assuming office.
Note 5: Director Cheng-Lun Lee resigned on May 28, 2025; the disclosed amount is remuneration received before resignation.
Note 6: Information on the remuneration of the Company's directors is disclosed in the annual report and the public information observation station in accordance with the relevant laws and regulations of the competent authorities. The Company continues to assess the feasibility of disclosing the individual remuneration of directors.

Remuneration Range Table

Ranges of remuneration paid to each of the Company's directors	Name of Director
	Sum of A+B+C+D		Sum of A+B+C+D+E+F+G
	The Company	All consolidated entities	The Company	Parent company and all investees
Less than NT$1,000,000
NT$1,000,000 (incl.)~NT$2,000,000 (excl.)
NT$2,000,000 (incl.)~NT$3,500,000 (excl.)
NT$3,500,000 (incl.)~NT$5,000,000 (excl.)	Independent Cheng-Ho Chiang, Zhen-Yuan Chen, Hui-Xiu Lee Directors: Cheng-Lun Lee, Shun-Chin Lee	I Independent Cheng-Ho Chiang, Zhen-Yuan Chen, Hui-Xiu Lee Directors: Cheng-Lun Lee, Shun-Chin Lee	Independent Cheng-Ho Chiang, Zhen-Yuan Chen, Hui-Xiu Lee Directors: Cheng-Lun Lee, Shun-Chin Lee	Independent Cheng-Ho Chiang, Zhen-Yuan Chen, Hui-Xiu Lee Directors: Cheng-Lun Lee, Shun-Chin Lee
NT$5,000,000 (incl.)~NT$10,000,000 (excl.)	Directors: Eric Y.T. Chuo, Enid H.C. Tsai, Olivia S.Y. Chuo, Chin-Tsai Chen, Corporate representative of Sanko Investment Co., Ltd.: Jing-Yi Huang	Directors: Eric Y.T. Chuo, Enid H.C. Tsai, Olivia S.Y. Chuo, Chin-Tsai Chen, Corporate representative of Sanko Investment Co., Ltd.: Jing-Yi Huang	Directors: Olivia S.Y. Chuo, Chin-Tsai Chen, Corporate representative of Sanko Investment Co., Ltd.: Jing-Yi Huang	Directors: Chin-Tsai Chen, Corporate representative of Sanko Investment Co., Ltd.: Jing-Yi Huang
NT$10,000,000 (incl.)~NT$15,000,000 (excl.)
NT$15,000,000 (incl.)~NT$30,000,000 (excl.)	Director: Eddie W.H. Chuo		Director: Eric Y.T. Chuo, Enid H.C. Tsai	Director: Enid H.C. Tsai, Olivia S.Y. Chuo
NT$30,000,000 (incl.)~NT$50,000,000 (excl.)		Director: Eddie W.H. Chuo	Director: Eddie W.H. Chuo	Director: Eric Y.T. Chuo
NT$50,000,000 (incl.)~NT$100,000,000 (excl.)				Director: Eddie W.H. Chuo
NT$100,000,000 or above
Total	11 persons	11 persons	11 persons	11 persons

(II) Remuneration to General Manager(s) and Assistant General Manager(s)

Job title	Full name	Salary (A)		Retirement pay and pension (B)		Rewards, and special disbursements (C) (Note 1)		Employees' remuneration (D) (Note 2)				Sum of A+B+C+D and ratio to net income (%)		Remuneration received from investee enterprises other than subsidiaries or from the parent company(Note 3)
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
								Amount in cash	Amount in shares	Amount in cash	Amount in shares
Global CEO(Note 4)	Eddie W.H. Chuo	44,495	50,495	959	959	33,314	37,855	9,710	0	9,710	0	88,478 5.80%	99,019 6.49%	9,945
CEO(Note 4)	Eric Y.T. Chuo
General Manager and Sustainable Development Manager(Note 4)	Enid H.C. Tsai
Executive Assistant General Manager, Chairman's Office	Ming-Yao Lin
Senior Vice President, Finance Division	Yue-Chin Wu
Senior Vice President, Marketing Business Group	Yan-Qi Peng
Deputy General Manager of the Chairman's Office(Note 5)	Ke-Huang Liao
Deputy General Manager of the Chairman's Office(Note 5)	Wen-Bin Lee

Note 1: Includes vehicle allocation cost of NT$2,637,000, excluding annual income of dedicated drivers of NT$3,021,000.
Note 2: NT$115,859,000 in employee compensation is allocated for 2025. As of the date of publication of this annual report, the list of employees to receive compensation has not yet been determined; therefore, the proposed allocation for this year is calculated based on the actual allocation ratio of previous years.
Note 3: Remuneration and business execution fees received by CEO Eric Y.T. Chuo i and Vice President Yan-Qi Peng as co-CEOs and directors of DaYin Microsystems (Stock Co., Ltd.)
Note 4: Global CEO Eddie W.H. Chuo, CEO Eric Y.T. Chuo, and General Manager and Sustainable Development Manager Enid H.C. Tsai, assume their positions on May 28, 2025.
Note 5: Vice Presidents Ke-Huang Liao and Wen-Bin Lee n of the Chairman's Office assume their positions on June 1, 2025.
Note 6: The remuneration information of the Company's managers is disclosed in the annual report and the public information observation station in accordance with the relevant laws and regulations of the competent authorities. The Company continues to assess the feasibility of disclosing the individual remuneration of managers.

Remuneration to Global CEO, General Manager(s) and Assistant General Manager(s)

Ranges of remuneration paid to each of the Company’s each General Manager and Assistant General Manager	Names of General Manager(s) and Assistant General Manager
	The Company	The Company and all investees
Less than NT$1,000,000
NT$1,000,000 (incl.)~NT$2,000,000 (excl.)
NT$2,000,000 (incl.)~NT$3,500,000 (excl.)
NT$3,500,000 (incl.)~NT$5,000,000 (excl.)	Ke- Huang Liao, Wen-Bin Lee	Ke- Huang Liao, Wen-Bin Lee
NT$5,000,000 (incl.)~NT$10,000,000 (excl.)	Ming-Yao Lin, Yue-Chin Wu, Yan-Qi Peng	Ming-Yao Lin, Yue-Chin Wu
NT$10,000,000 (incl.)~NT$15,000,000 (excl.)	Enid H.C. Tsai	Enid H.C. Tsai, Yan-Qi Peng
NT$15,000,000 (incl.)~NT$30,000,000 (excl.)	Eddie W.H. Chuou, Eric Y.T. Chuo,	Eddie W.H. Chuou, Eric Y.T. Chuo
NT$30,000,000 (incl.)~NT$50,000,000 (excl.)
NT$50,000,000 (incl.)~NT$100,000,000 (excl.)
NT$100,000,000 or above
Total	8 persons	8 persons

(III) Name of Managerial Officers Receiving Employee Remuneration Distribution and the Status Thereof

March 31, 2026
Unit: NT$ thousand

Job title	Full name	Amount in shares	Amount in cash	Total	The ratio of total amount to net income (%)
Global CEO	Eddie W.H. Chuo	0	11,000	11,000	0.72%
CEO	Eric Y.T. Chuo
General Manager and Sustainable Development Manager	Enid H.C. Tsai
Executive Assistant General Manager, Chairman's Office	Ming-Yao Lin
Senior Vice President, Finance Division	Yue-Chin Wu
Senior Vice President, Marketing Business Group	Yan-Qi Peng
Deputy General Manager of the Chairman's Office	Ke-Huang Liao
Deputy General Manager of the Chairman's Office	Wen-Bin Lee
Assistant General Manager, System Development Business Division	Fu-Qing Wang
Assistant General Manager, Chairman's Office	Jun-Liang Wu
Assistant General Manager, Chairman's Office	Chuang-Bao Yang
Assistant General Manager, Chairman's Office	Shi-Rong Chiu
Assistant General Manager, Finance Division	Hong-Ming Chen

Note 1: The employee compensation allocation for 2025 is NT$115,859,000. As of the date of publication of the annual report, the list of employees to be compensated has not yet been determined. Therefore, the proposed allocation for this year is calculated based on the actual allocation ratio of previous years.
Note 2: It indicates these who holding the positions as of the publication date of the annual report.

(IV) Separately compare and describe total remuneration, as a percentage of net income stated in the parent company only financial reports or individual financial reports, as paid by this company and by each other company included in the consolidated financial statements during the past 2 fiscal years to directors, supervisors, general managers, and assistant general managers, and analyze and describe remuneration policies, standards, and packages, the procedure for determining remuneration, and its linkage to operating performance and future risk exposure.

Analysis of the ratio of the total remuneration given to directors, general managers and vice general managers by the Company and all companies in the consolidated financial statements over the past two years to the net profit after tax in the individual financial report.

Professional Title/Project	The Company				All consolidated entities
	2024		2025		2024		2025
	Total amount	% of net profit after tax	Total amount	% of net profit after tax	Total amount	% of net profit after tax	Total amount	% of net profit after tax
Directors' remuneration	87,039	4.41%	66,620	4.37%	108,354	5.49%	90,523	5.93%
General Manager and Deputy General Managers' remuneration	83,881	4.25%	88,478	5.80%	96,241	4.88%	99,019	6.49%
The Company after-tax net profit	1,971,948	-	1,525,866	-	1,971,948	-	1,525,866	-

Note: 1. The decrease in directors' remuneration in 2025 compared to 2024 was due to a reduction in directors' compensation appropriations.
2. The increase in the remuneration of the General Manager and Deputy General Managers in 2025 compared to 2024 was due to the addition of two Deputy General Managers.

The increase in the ratio of total remuneration of directors, the General Manager, and Deputy General Managers to net profit after tax in 2025 compared to 2024 was due to a decrease in both total remuneration and net profit after tax compared to 2024.
Remuneration policies, standards, and packages, the procedure for determining remuneration, and its linkage to operating performance and future risk exposure.

(1) Remuneration policies, standards, and packages

① For the remuneration of Company directors, pursuant to the provision prescribed in Article 25 of the Company's Articles of Incorporation, the remuneration of chairman, vice chairman and directors is based on the level of involvement in corporate operations and the value of contribution, in addition to taking consideration of the industry standards in Taiwan and abroad, with authorization for the Board of Directors to resolve. Additionally, in the event of any profits for that year, the Company shall appropriate no higher than 4% of the profits as remuneration of director pursuant to provision prescribed under Article 31 of Articles of Incorporation. The amount of appropriation shall be reviewed by the Salary and Remuneration Committee before submitting to the Board of Directors for discussion and distribution, in addition to reporting to the Shareholders' Meeting.

② Managers of HIWIN Technologies are treated as ordinary employees and receive salaries. Their compensation is determined based on the company's operations and profitability, taking into account their contribution to the company's annual revenue and profit, their level of operational involvement, and performance evaluations. This evaluation considers key results related to company objectives, functional performance, organizational engagement, and ESG performance (ESG performance accounts for 15%). Various bonuses, profit sharing, and benefits are awarded accordingly, providing reasonable remuneration. The policy for paying managers' compensation is based on the company's "Employee Salary and Benefits Operating Procedures," their specific responsibilities within the company, and their contribution to the company's operational performance, including profit sharing and year-end bonuses. Furthermore, if the company is profitable in a given year, in accordance with Article 31 of the company's articles of association, no less than 1% of employee compensation should be allocated, with no less than 0.3% allocated to entry-level employees. This allocation is subject to review by the Remuneration and Nomination Committee, further discussion by the Board of Directors, and a report to the Shareholders' Meeting. The bonus distribution committee will take into account the financial and non-financial performance data of each manager's unit and calculate their remuneration. The remuneration system will be reviewed from time to time based on the actual operating conditions and relevant laws and regulations.

③ The remuneration package paid by the Company is defined in the Charter of Remuneration Committee, which includes cash remuneration, employee option for share subscription, bonus shares, retirement welfare or unemployment benefits, allowances, and other measures with substantial rewards; the scope and publicly listed companies shall record matters on this Annual Report with consistency in remuneration for directors and managerial officers.

④ The performance indicators of the Company's CEO, General Manager and senior managers include ESG sustainable development performance, which is linked to variable rewards and is linked to short-term and long-term compensation. The performance indicators and their weights are as follows:

Performance indicators	%	Illustrate
Key Targets and Results (OKR)	55%	Including risk management 5%
Sustainable Development Performance	15%	CEO · General Manager : SBTi Goal achievement rate (8%)and DJSI Evaluation (7%)
Senior managers : Sustainable Impact Indicators (15%, See the table below for details)
Functional performance	10%
Organizational energy participation	20%

Key Issues and Sustainable Impact Metrics for Senior Management Compensation.

Material Topic	Sustainability Impact Indicator	Weighting
R&D and Innovation Management	R&D expenditure as a percentage of net revenue	13%
Sustainable Products	Energy efficiency of electromechanical products (baseline year: 2021)	6%
	Domestic wooden packaging recycling rate (baseline year: 2021)	6%
Customer Relationship and Brand Management	Customer satisfaction	6%
	Product quality satisfaction	6%
Sustainable Supply Chain Management	Green procurement amount as a percentage of total annual procurement	13%
Climate Strategy	Scope 1 + Scope 2 greenhouse gas emissions (baseline year: 2021)	13%
Workplace safety and health	Frequency of Disability Injuries	6%
	Percentage of Disability Injuries	6%
Talent attraction and retention	Retention Rate of Key Personnel	12%

The company has incorporated major operations into its corporate risk management framework, which is regularly reviewed by the board of directors. Risk management-related indicators are included in the performance metrics for the company's CEO, General Manager, and managers.

Risk Management Indicators:	Weighting
Have risks been identified and assessed as significant risks based on their likelihood and impact	20%
Have contingency plans been proposed for all significant risks and submitted to the Audit and Risk Management Committee	20%
Have the proposed contingency plans been implemented, regularly monitored, and adjusted in a timely manner	60%

(2) The Company's procedures for determining the remunerations of the directors, general manager, and vice general managers:

① The Company adopts "director performance evaluation and remuneration system," "board performance evaluation method" and "manager performance evaluation and bonus system" as the compliance of evaluation. The board remuneration not only takes consideration of the Company's overall operating performance, future risks and development trends of the industry but also conducts self-evaluation questionnaire for internal evaluation. The indicators of evaluation include: Company goals and task control, director responsibility recognition, involvement in corporate operation, internal relation management and communication, professional and continuous education for directors (such as corporate governance related courses), and internal control results, as well as the level of contribution to the company by giving reasonable remuneration. The salary remuneration for the general managers and vice general managers is based on the Company's rules on "Employee Salary and Treatment Guidelines" with consideration of the performance of the managerial officers and responsible units, the overall corporate management performance, and the association with future risks for distribution. The Remuneration Committee proposes suggestions for the BOD to resolve and review the remuneration system, depending on the actual operation conditions and relevant laws and regulations, in order to seek for the balance between corporate sustainable management and risk control.
② The 2025 annual self-evaluation results of the board of directors, directors and functional committee members are all better than the standard.
③ The evaluation of performance related to the directors and the managers of the Company and salary reasonableness are periodically evaluated and reviewed by the Remuneration Committee and the BOD. Apart from considering the achievement rate by departments in charge and their contribution to the Company, the overall operation performance of the company, and future risks and development trends of the industry are also taken into account. Additionally, the comprehensive consideration of the trends in current corporate governance yields a reasonable remuneration to seek for balance between the Company's sustainable management and risk control. The actual amount distrusted for the remuneration

to the directors and managers in 2025 was deliberated by the Remuneration Committee and submitted to the BOD for approval. The ratio of remuneration to employees and directors is 6.0% and 3.0% respectively, in compliance with Company’s articles of incorporation.

(3) Linkage to operating performance and future risk exposure:

① 1. The Company’s remuneration policy mainly takes consideration of the overall operation of the Company and approve the payment standards depending on the completion rate of performance by department and the level of contribution, which reflects the operation effectiveness of the BOD and management team. Additionally, the Company takes consideration of the industry salary standards to ensure the competitiveness of the salary for the Company’s management compared with the industry, in order to retain distinguished management personnel.

② The performance goals of the managers are integrated with “risk control” to ensure the possible risks within the scope of responsibility through management and prevention, in addition to approving the evaluation results by actual performance, linking all human resources and related salary remuneration policies. The Company management evaluates the various existing and future risk factors when making material decisions and will act after conducting proper evaluation. The performance of related decisions is reflected on the Company profits and further related to the control performance of management salary and risks.

③ Linkage to the future risks: The payment of Company’s remuneration takes consideration of the changes in future environment and operation performance before evaluation and adjustment. Moreover, directors and employees involving unlawful conducts and bring losses to the Company may be penalized by law and regulations.

III. The state of the Company's implementation of corporate governance

(I) Operation of BOD

On May 28, 2025, HIWIN Technologies held an annual shareholders' meeting to elect new directors. The newly elected directors took office on the date of the election (their term of office is from May 28, 2025 to June 27, 2028).
In 2025, the Board of Directors held six regular meetings and one extraordinary meeting, with an actual attendance rate of $97.1\%$ . The attendance of individual directors is as follows:

Job title	Full name	Meetings Attended in Person (B)	Meetings Attended by Proxy	Actual Attendance rate (%) [B/A]	Remark
Chairman	Eddie W.H. Chuo	7	0	100%	Re-election
Director	Eric Y.T. Chuo	7	0	100%	Re-election
Director	Enid H.C. Tsai	7	0	100%	Re-election
Director	Olivia S.Y. Chuo	7	0	100%	Re-election
Director	Chin-Tsai Chen	5	2	71.4%	Re-election
Director	Sanko Investments Ltd. Representative: Huang Ching-Yi	7	0	100%	Re-election
Director	Cheng-Lun Lee	4	0	100%	Took office after the re-election on May 28, 2025.
Director	Shun-Chin Lee	3	0	100%	Stepped down after the re-election on May 28, 2025.
Independent director	Cheng-Ho Chiang	7	0	100%	Re-election
Independent director	Zhen-Yuan Chen	7	0	100%	Re-election
Independent director	Hui-Xiu Lee	7	0	100%	Re-election
Other information required to be disclosed: I. If any of the following circumstances exists, specify the board meeting date, meeting session number, content of the motion(s), the opinions of all the independent directors, and the measures taken by the Company based on the opinions of the independent directors: (I) Matters listed in Article 14-3 of the Securities and Exchange Act: The Company has established an audit committee, the provisions of Article 14-3 shall not apply. Please see The operation of the Audit Committee of this Annual Report for the relevant information. (II) In addition to the matters referred to above, any dissenting or qualified opinion of an independent director that is on record or stated in writing with respect to any board resolution: None.

II. The status of implementation of recusals of directors with respect to any motions with which they may have a conflict of interest, the director's name, the content of the motion, the cause for recusal, and whether and how the director voted shall be specified:

February 26, 2025, 12th Session, 14th Meeting: Subsidiary Maicuis Precision Endorsement Guarantee Case. Reasons for Conflict of Interest and Voting Participation: This case involved the interests of the directors themselves or their legal representatives. Except for Directors Eddie W.H. Chuo, Eric Y.T. Chuo, and Olivia S.Y. Chuo, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, passed the resolution without objection as it did not harm the company's interests.

April 9, 2025, 12th Session, 15th Meeting: Lifting the Non-Competition Restrictions on the 13th Board Directors and Their Representatives. Reasons for Conflict of Interest and Voting Participation: This case involved the interests of the directors themselves. Except for Directors Eddie W.H. Chuo, Eric Y.T. Chuo, Olivia S.Y. Chuo, Chin-Tsai Chen, and Ms. Huang Ching-Yi, the legal representative of Sanxing Investment (Shares), who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, passed the resolution without objection as it did not harm the company's interests.

May 9, 2025, 12th Session, 16th Meeting: Guarantee and Endorsement of Subsidiary Maicuis Precision. Reasons for Conflict of Interest and Voting: This case involved the personal interests of directors or their legal representatives. Except for directors Mr. Eddie W.H. Chuo, Mr. Eric Y.T. Chuo, and Ms. Olivia S.Y. Chuo, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, unanimously approved the resolution as it did not harm the company's interests.

Appointment of Members of the Third Nomination Committee: Reasons for Conflict of Interest and Voting Circumstances: This proposal involved the personal interests of the directors. Except for independent directors Mr. Cheng-Ho Chiang, Mr. Zhen-Yuan Chen, and Ms. Hui-Xiu Lee, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, unanimously approved the proposal as it did not harm the company's interests.

Adjustment of Senior Management Positions: Reasons for Conflict of Interest and Voting Circumstances: This proposal involved the personal interests of the directors and managers and their relatives. Except for directors Mr. Eddie W.H. Chuo, Mr. Eric Y.T. Chuo, and Ms. Olivia S.Y. Chuo, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, unanimously approved the proposal as it did not harm the company's interests.

Adjustment of General Manager Cai Huiqing as Co-CEO: Reasons for Conflict of Interest and Voting Circumstances: This proposal involved the personal interests of the directors and managers. Except for director Ms. Cai Huiqing, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, unanimously approved the proposal as it did not harm the company's interests.

Adjustment of General Manager Cai Huiqing as Co-CEO: Reasons for Conflict of Interest and Voting Circumstances: This proposal involved the personal interests of the directors and managers. August 12, 2025, 13th Session, Second Meeting: Subsidiary Maicuis Precision Endorsement Guarantee Case: Reasons for Conflict of Interest and Voting Circumstances: This case involved the personal interests of directors or their legal representatives. Except for directors Mr. Eddie W.H. Chuo, Mr. Eric Y.T. Chuo, and Ms. Olivia S.Y. Chuo, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, unanimously passed the resolution as it did not harm the company's interests.

Amendment to the "Director Performance Appraisal and Remuneration System" Case: Reasons for Conflict of Interest and Voting Circumstances: This case involved the personal interests of directors. Except for independent directors Mr. Cheng-Ho Chiang, Mr. Zhen-Yuan Chen, and Ms. Hui-Xiu Lee, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, unanimously passed the resolution as it did not harm the company's interests. 2025.11.11 Thirteenth Session, Third Meeting: Cash Capital Increase and Endorsement Guarantee for Subsidiary Maicuis Precision Reason for Conflict of Interest and Voting Circumstances: This case involves the interests of directors themselves or their representatives. Except for directors Mr. Eddie W.H. Chuo, Mr. Eric Y.T. Chuo, and Ms. Olivia S.Y. Chuo, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, passed the resolution without objection as it did not harm the company's interests.

Adjustment to the Lease of Yunke Factory Building from Dayin Microsystems Co., Ltd. Reason for Conflict of Interest and Voting Circumstances: This case involves the interests of directors themselves and their second-degree relatives or their representatives. Except for directors Mr. Eddie W.H. Chuo, Mr. Eric Y.T. Chuo, Ms. Olivia S.Y. Chuo, Mr. Li Zhenglun, and Mr. Li Xunqin, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, passed the resolution without objection because it did not harm the company's interests. Regarding the case of renewing the lease of factory premises from Da Yin Micro Systems Co., Ltd.: Reasons for avoidance of conflict of interest and voting situation: This case involves the corporate interests of the directors themselves and their second-degree relatives or their representatives. Except for directors Mr. Eddie W.H. Chuo, Mr. Eric Y.T. Chuo, Ms. Olivia S.Y. Chuo, Mr. Li Zhenglun, and Mr. Li Xunqin, who abstained from discussion and voting, the remaining directors, after consultation with the acting chairman, passed the resolution without objection because it did not harm the interests of the company.

III. The evaluation cycle, period, scope, method, and content of the Board's self-assessment (or peer assessment) are as follows:

Evaluation Cycle: Once a year.

Evaluation Period: January 1, 2025 to December 31, 2025.

Evaluation Scope: Includes the entire Board, Board members, and all functional committees.

Evaluation Methods: Internal self-assessment by the Board, self-assessment by Board members, peer assessment by Board members, and self-assessment by functional committees.

Evaluation Procedure: Self-assessment is conducted by directors and members of the Board's functional committees using the "Board Performance Evaluation Self-Assessment Questionnaire," "Board Member Performance Evaluation Self-Assessment Questionnaire," "Board Member Performance Evaluation Peer Assessment Questionnaire," and "Functional Committee Performance Evaluation Self-Assessment Questionnaire," respectively.

Evaluation Results: Strongly Agree (5 points); Agree (5 points); Neutral (3 points); Disagree (2 points); Strongly Disagree (1 point)

Assessment Targets	Overall Board of Directors	Board Members (Self, Peers)	Functional Committees
Assessment Aspects:	I. Level of Involvement in Company Operations II. Improving the Quality of Board Decision-Making III. Board Composition and Structure IV. Selection and Continuing Education of Directors V. Internal Control	I. Understanding of Company Goals and Tasks II. Directors' Understanding of Responsibilities III. Level of Involvement in Company Operations IV. Internal Relationship Management and Communication V. Directors' Professionalism and Continuing Education VI. Internal Control	I. Level of Involvement in Company Operations II. Understanding of Functional Committee Responsibilities III. Improving the Quality of Functional Committee Decision-Making IV. Composition and Selection of Functional Committee Members V. Internal Control

Measurement Items	48 items	30 items	25 –27items
Average Score	4.7 points	4.8 points	5 points
Assessment Result	Above Standard	Above Standard	Excellent

IV. The objectives of strengthening the functions of the board of directors in current year and the most recent fiscal year (for example, the establishment of an audit committee, improvement on information transparency...etc.) and status of implementation:

(I) The Company's Audit Committee was established on June 28, 2016, and is responsible for auditing the proper presentation of the Company's financial statements, the selection (dismissal) and independence and performance of the auditors, the effective implementation of the Company's internal controls, the Company's compliance with relevant laws and regulations, and the management of existing or potential risks. On August 12, 2025, the Audit Committee and the Board of Directors resolved to strengthen the Board of Directors' oversight of the Company's risk matters by incorporating the review of risk management policies, procedures and structures, and the review of the implementation of risk management into the powers of the Audit Committee, and renamed it the Audit and Risk Management Committee. The Audit and Risk Management Committee has met 4 times in 2025. For details, please refer to the annual report on the operation of the Audit and Risk Management Committee.

(II) The Company's Compensation and Remuneration Committee was established on December 28, 2011, and is responsible for formulating and regularly reviewing the policies, systems, standards, and structures for the performance evaluation and compensation of directors and managers, as well as regularly evaluating and determining the compensation of directors and managers. The Company's Nomination Committee was established on November 5, 2021, to assist the Board of Directors in strengthening its management mechanisms and improving corporate governance for the Company's sustainable development. It formulates selection criteria for Board members and senior managers, including the required composition and qualifications, and selects and reviews candidates for directors and senior managers. In order to implement the Company's sustainable development goals and strengthen the functions of the Board of Directors, and to improve administrative efficiency and resource integration, on August 12, 2025, the Compensation and Remuneration Committee, the Nomination Committee, and the Board of Directors resolved to merge the "Compensation and Remuneration Committee" and the "Nomination Committee." The "Compensation and Remuneration Committee" will assume and integrate the relevant functions of the "Nomination Committee" and will be renamed the "Remuneration and Nomination Committee." The "Nomination Committee" will be dissolved simultaneously. The committee has held three meetings in 2025. For details, please refer to the Annual Report on the operation of the Remuneration and Nomination Committee.

(III) In order to implement sustainable development goals, strengthen sustainable competitiveness and the functions of the Board of Directors, and enhance the control and supervision of information security risks to safeguard corporate assets, the Company established a Sustainable Development and Information Security Committee on August 12, 2025. The Board of Directors appointed Chairman Zhuo Wenheng, Director Chen Zhenyuan, and Director Li Zhenglun as the first members, and appointed Director Chen Zhenyuan as the convener. The Sustainable Development and Information Security Committee has the following subcommittees: (1) ESG Executive Committee: General Manager Cai Huiqing was appointed as the Sustainable Development Director and Chairman, and functional groups were formed by assigning managers at all levels to promote and implement sustainable development-related work. (2) Information Security Executive Committee: Senior Director Zhang Yongming was appointed as the Information Security Director and Chairman, and functional groups were formed by assigning managers at all levels to comprehensively promote and implement information security protection-related work. The committee will meet once in 2025. For details, please refer to the Annual Report on the Operation of the Sustainable Development and Information Security Committee.

(IV) In order to promote corporate governance and effectively perform the functions of the board of directors, the company has appointed a corporate governance officer in accordance with the "Key Points for the Establishment and Exercise of Powers of the Board of Directors of Listed Companies".

(V) To implement corporate governance and enhance the function of the Board of Directors by establishing performance targets and strengthening the efficiency of the Board's operations, the Company has established the "Board Performance Evaluation Method" and conducts evaluations before the end of the first quarter of each year. The evaluation results for 2025 are above the standard. The overall operation of the Board of Directors and functional committees is excellent, and there are no suggestions for improvement under the current system. The previous Board of Directors and functional committee performance evaluation results were submitted to the Remuneration and Nomination Committee for review on February 26, 2026, and then submitted to the Board of Directors.

(VI) Adhering to operational transparency and safeguarding shareholder rights, the company proactively discloses important board resolutions on its website.

(VII) The goal of board diversity: The Company emphasizes the diversity of its board members. When selecting board members, the Company considers multiple aspects such as management ability, crisis management ability, financial accounting expertise, etc., to meet the Company's board diversity policy. In addition, the Company attaches special importance to gender equality diversity. Among the 10 board members, 4 are women, thus implementing the gender equality diversity policy.

(VIII) Our company upholds the principle of transparency and publishes important board resolutions on the company information observation station or the company website for investors to access.

(II) The operation of the Audit and Risk Management Committee:

On August 12, 2025, the Audit Committee and the Board of Directors resolved to strengthen the Board's oversight of the Company's risk matters by incorporating the review of risk management policies, procedures, and structures, as well as the supervision of risk management implementation, into the powers of the Audit Committee. The Audit Committee was renamed the "Audit and Risk Management Committee," composed of three independent directors. This committee is responsible for reviewing the proper presentation of the Company's financial statements, the selection (dismissal) and independence and performance of the auditors, the effective implementation of the Company's internal controls, the Company's compliance with relevant laws and regulations, and the management of existing or potential risks. Independent Director Cheng-Ho Chiang serves as the Chairman and Convenor. Independent Directors Zhen-Yuan Chen and Hui-Xiu Lee both possess expertise in financial accounting and industry knowledge, meeting the professional requirements of the committee. Its main powers are as follows:

(1) To establish or amend the internal control system in accordance with Article 14-1 of the Securities and Exchange Act.
(2) To assess the effectiveness of the internal control system.
(3) Procedures for handling significant financial transactions involving the acquisition or disposal of assets, derivative transactions, lending of funds to others, endorsement of guarantees, or provision of guarantees, in accordance with Article 36-1 of the Securities and Exchange Act.

(4) Matters involving the personal interests of directors.
(5) Significant asset or derivative transactions.
(6) Significant lending, endorsement, or provision of guarantees.
(7) Issuance, offering, or private placement of equity securities.
(8) Appointment, dismissal, or remuneration of auditors.
(9) Appointment or removal of finance, accounting, or internal audit managers.
(10) Annual financial reports signed or sealed by the chairman, managers, and accounting manager, and semi-annual financial reports requiring auditor certification.
(11) Review risk management policies, procedures, and structures, and periodically review their applicability and effectiveness; determine risk tolerance and guide resource allocation; ensure that the risk management mechanism can adequately address the risks faced by the company and integrate them into daily operational processes; determine the priority and risk level of risk control; review the implementation of risk management, propose necessary improvement suggestions, and report to the Board of Directors regularly (at least once a year); assist the Board of Directors in monitoring the company's risk management effectiveness.
(12) Other significant matters required by the company or competent authorities.

The matters to be considered by the Audit and Risk Management Committee in 2025 mainly include the following:

(1) Audit of financial statements and accounting policies and procedures.
(2) Assessment of the effectiveness of the internal control system.
(3) Amendment of the internal control system and management methods.
(4) Significant acquisition of assets, funds, loans, and guarantees.
(5) Qualifications, independence, and competence of the auditors.
(6) Appointment and remuneration of the auditors.
(7) Regulatory compliance.
(8) Fraud prevention plan and fraud investigation.
(9) Corporate risk management.

Operation:

The Company reelected the independent directors at the Shareholder's Meeting held on May 28, 2025. The new independent directors took office from the reelection day on (term commencing from May 28, 2025 and expires on May 27, 2028).
The Audit Committee held 5 meetings (A) in 2025. The status of independent director attendance is shown below:

Job title	Full name	Meetings Attended in Person (B)	Meetings Attended by Proxy	Actual Attendance rate (%) (B/A)	Remark
Convener (Independent director)	Cheng-Ho Chiang	5	0	100%	Re-election
Member (Independent director)	Zhen-Yuan Chen	5	0	100%	Re-election
Member (Independent director)	Hui-Xiu Lee	5	0	100%	Re-election
Other information required to be disclosed: I. If any of the following circumstances exists, specify the Audit Committee meeting date, meeting session number, content of the motion, resolution of the Audit Committee, and the measures taken by the Company based on the Audit Committee's opinions: (I) Matters listed in Article 14-5 of the Securities and Exchange Act
Date of Audit Committee Meeting (Session)		Proposal description		Resolution adopted by the Audit Committee	Opinions of all independent directors and the Company's treatment to these opinions
2025.02.26 The 13th meeting of the 3rd Term	Approval of the 2024 "Internal Control System Statement"		The proposal was resolved to pass as it was unanimously by all members present at the meeting upon inquiry by the chair, and to be submitted to the Board for discussion.	The Audit Committee approved all the proposal unanimously; the Board approved all proposal based on the advices of the Audit Committee.
		Proposal of the 2024 Business Report and Financial Statements
		Proposal to capital Increase/Decrease for Japanese Subsidiary
		Proposal to provide endorsement/guarantee to the subsidiary, Matrix Precision
		Proposal to provide endorsement/guarantee to the subsidiary, Hiwin Italy
		Proposal to transfer overdue account of the Japanese subsidiary as loaning of funds

| 2025.04.09
The 14th meeting of the
3rd Term | Proposal to lifting of Non-Competition Restrictions for the Thirteenth Board of Directors and Their Representatives | | |
| --- | --- | --- | --- |
| | Proposal to transfer overdue account of the Japanese subsidiary as loaning of funds | | |
| 2025.05.09
The 15th meeting of the
3rd Term | Proposal to provide endorsement/guarantee to the subsidiary, Matrix Precision | | |
| | Proposal to provide endorsement/guarantee to the subsidiary, Hiwin Sigapore | | |
| | Proposal to provide endorsement/guarantee to the subsidiary, Hiwin Japan | | |
| | Proposal to transfer overdue account of the Japanese subsidiary as loaning of funds | | |
| 2025.08.12
The 1st meeting of the 4th Term | Proposal to provide endorsement/guarantee to the subsidiary, Hiwin Korea | | |
| | Proposal to provide endorsement/guarantee to the subsidiary, Matrix Precision | | |
| | Proposal to rename the "Audit Committee" to the "Audit and Risk Management Committee" | | |
| | Proposal to amend the "Internal Control System and Internal Audit Implementation Rules" | | |
| 2025.11.10
The 2nd meeting of the 4th Term | Proposal to increase capital and provide guarantee for subsidiary Matrix Precision | | |
| | Proposal to adjust the lease of Yunke Plant from Microsystems Co., Ltd | | |
| | Proposal to renew the lease of plant from Microsystems Co., Ltd. | | |
| | Proposal to provide endorsement/guarantee to the subsidiary, Hiwin Italy | | |
| | Proposal to provide endorsement/guarantee to the subsidiary, Hiwin Korea | | |
| | Proposal to provide endorsement/guarantee to the subsidiary, Matrix Precision | | |
| | In conjunction with the renaming of the company's audit committee, a draft amendment to the relevant rules and regulations is proposed. | | |

(II) Except for the said matters, other resolutions that have not been approved by the Audit Committee, yet have been approved by two-thirds or more of all directors: None.

II. The implementation of the independent directors' recusal of conflict proposal, specify the name of the independent director, the content of the proposal, cause of the recusal of interests, and participation in voting: None.

III. Communication between the independent directors, internal audit officer and accountants (Significant matters, manners, and results of communication on the Company's financial and business status shall be included:

(I) An individual meeting between the CPA and the audit officer shall be held at least once a year to discuss the completed internal audit and the external audit opinion by the CPA, and to communicate based on the examination findings.

(II) The internal audit officer shall report to the Audit and Risk Management Committee on a regular basis

The annual internal audit plan
Regularly report to the Audit and Risk Management Committee of the implementation of internal audit

(III) The CPAs attend the meeting of the Audit and Risk Management Committee at least twice a year and report the annual examination findings

(IV) Others: In the event of major abnormal circumstances, or matters that independent directors, audit officers and accountants deem necessary to communicate independently, meetings may be held at any time to facilitate communication.

As of the print date of this Annual Report, the communication points and results between the independent directors and internal audit officers are as follows:

Date	Attendees	Communication Points
2025.02.26
(Pre-meeting of Audit Committee)	Independent director, Cheng-Ho Chiang
Independent director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Audit Officer, Zheng Zunyuan	1. Report the auditing business points and results to the independent director
2. Present the 2024 “Internal Control System Statement”	1. After discussion and communication, the independent director has no objection to the auditing business execution result report
2. Report to the Board upon the approval through deliberations.
2025.05.09
(Report by the internal audit officer to the independent directors individually)	Independent director, Cheng-Ho Chiang
Independent director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Audit Officer, Chen, Shih-Tsung	Internal audit reports.	After discussion and communication, the independent director has no objection to the auditing business execution result report
2025.08.12
(Report by the internal audit officer to the independent directors individually)	Independent director, Cheng-Ho Chiang
Independent director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Audit Officer, Chen, Shih-Tsung	Internal audit reports.	After discussion and communication, the independent director has no objection to the auditing business execution result report
2025.11.10
(Pre-meeting of Audit and Risk Management Committee)	Independent director, Cheng-Ho Chiang
Independent director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Audit Officer, Chen, Shih-Tsung	1. Internal audit reports.
2. Formulation of the 2026 annual internal audit plan	1. After discussion and communication, the independent director has no objection to the auditing business execution result report and the audit plan.
2. Report to the Board upon the approval through deliberations.

| | 2026.02.26
(Pre-meeting of Audit and Risk Management Committee) | Independent director, Cheng-Ho Chiang
Independent director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Audit Officer, Chen, Shih-Tsung | 1. Report the auditing business points and results to the independent director
2. Present the 2025 “Internal Control System Statement” | 1. After discussion and communication, the independent director has no objection to the auditing business execution result report
2. Report to the Board upon the approval through deliberations. |
| --- | --- | --- | --- | --- |
| | As of the print date of this Annual Report, the communication points and results between the independent directors and the attesting CPAs are as follows: | | | |
| | Date | Attendees | Communication Points | Communication Results |
| | 2025.02.26
(Report by the CPA to the independent directors individually) | Independent director, Cheng-Ho Chiang
Independent director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Wu, Li-Dong, CPA | 1. The CPA explained the audit results of 2024 consolidated financial statements, and discuss the findings
2. Report by the CPA to the independent directors regarding the audit results of internal control.
3. The CPA discussed the issues raised by the independent directors witt communication. | The annual financial statements are adopted by the Audit Committee and submitted to the BOD for approval, followed by regular announcement and report to the competent authority in time. |
| | 2025.11.10
(Report by the CPA to the independent directors individually) | Independent director, Cheng-Ho Chiang
Independent director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Wu, Li-Dong, CPA | 1. Evaluation of fraudulent matters, significant risks and critical matter audit report.
2. The CPA discussed and communicated the issues raised by the independent directors | After discussion and communication, the independent director had no objection |
| | 2026.02.26
(Report by the CPA to the independent directors individually) | Independent director, Cheng-Ho Chiang
Independent Director, Zhen-Yuan Chen
Independent director, Hui-Xiu Lee
Wu, Li-Dong, CPA | 1. The CPA explained the audit results of 2025 consolidated financial statements, and discuss the findings
2. Report by the CPA to the independent directors regarding the audit results of internal control.
3. The CPA discussed and communicated the issues raised by the independent directors | The annual financial statements are adopted by the Audit Committee and submitted to the BOD for approval, followed by regular announcement and report to the competent authority in time. |

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

Evaluation item	Implementation status			Deviations from the Corporate Governance BestPractice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
I. Has the Company established and disclosed its Corporate Governance Best-Practice Principles based on the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies?	V		The Company has established “Corporate Governance Best Practice Principles” in accordance with the “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies,” the operation of which does not deviate from the best-practice principles established by the Company. The Company continues to promote the operation of corporate governance in accordance with the relevant laws and regulations.	None.
II. Shareholding Structure and Shareholders’ Rights
(I) Does the Company have Internal Operation Procedures for handling shareholders’ suggestions, concerns, disputes and litigation matters. If yes, have these procedures been implemented accordingly?
(II) Does the Company know the identity of its major shareholders and the parties with ultimate control of the major shareholders?
(III) Has the Company built and implemented a risk management system and a firewall between the Company and its affiliates?
(IV) Has the Company established internal rules prohibiting insider trading of securities based on undisclosed information?	V
V
V
V		(I) The Company has established the relevant internal operation procedure and designated related departments to handle shareholders’ suggestions or disputes. The Company also established a spokesperson system with a specialist handling to replay shareholder questions, doubts, disputes, and litigations. Moreover, a mailbox is set up on the company website to handle employees, suppliers, clients, and shareholders, while the Company’s dedicated department will handle the suggestions and equity related issues.
(II) The Company has personnel in charge of the shareholder service and entrusts shareholder service agency – Yuanta Securities for handling the major shareholding by directors, managers and shareholders with 10% or more., acknowledging the list of major shareholders and ultimate control list of major shareholders.
(III) The Company has established related internal control systems and firewall mechanisms, such as rules governing the management of the subsidiaries and procedures for loan, endorsement and guarantee, according to law and regulations.	None.

Evaluation item	Implementation status
	Yes	No	Summary description
			(IV) The Company has established “Procedure for Precaution Against Insider Trading and Internal Material Information Processing” to expressly prohibit insiders from trading marketable securities using undisclosed information. In addition, Article 37 of “Corporate Governance Best Practice Principles” also stipulates that board members shall do their duties loyally and note obligations of goodwill manager to exercise duties with high disciplines and prudent attitudes. The Company’s audit department will evaluate if the aforementioned procedure were executed in conformance with the regulations from time to time, the promotion on prevention of insider trading has been stressed in directors and managerial officers. The Company reminds directors not to trade their shares in 30 days before the announcement of the annual financial report and during the closing period 15 days before the announcement of quarterly financial report, after validating each board meeting date.
III. Composition and responsibilities of the board of directors
(I) Have a diversity policy and specific management objectives been adopted for the board and have they been fully implemented?
(II) Has the Company voluntarily established other functional committees in addition to the remuneration committee and the audit committee?
(III) Has the Company established rules and methodology for evaluating the performance of its Board of Directors, implemented the performance evaluations on an annual basis, and submitted the results of performance evaluations to the board of directors and used them as reference in determining salary/compensation for individual directors and their nomination and additional office terms?
(IV) Does the Company regularly evaluate its external auditors’ independence?	V		(I) The Company has established the “Corporate Governance Best Practice Principles” which stipulated that board member shall be aware of gender equality and be equipped with knowledge, skills and qualities required for performing their duties; it has indeed executed such principles. The company greatly values the integration of diversity among the board of directors. The board of directors shall have proper professional knowledge and skills while members shall possess professional background including operational judgment, accounting and finance, operation management, crisis handling, industry knowledge, international market perspective, leadership, and decision-making capacity, targeting at least 3 seats per field. Moreover, the Company also values the gender equality of member composition of Board of Directors, targeting at female directors with at least 3 people. In terms of the 2025 implementation, there are currently 10 directors on the Board of Directors to serve, including 4 female directors, which accounted for 40% of the board members. In terms of the management capabilities, crisis management ability, financial accounting professional, and many other aspects of the board members, at least 3 people qualified for each competency item in order to substantiate the company’s policy of board director diversity. The specific implementation is as follows, all of which are in line with the company’s management objectives: The Company chairman leads the Board to implement excellent Board governance system, sound supervision function and strengthening of management functions.
(II) In order to implement sustainable development goals, enhance sustainable competitiveness, and strengthen the control and supervision of information security risks, the Company will voluntarily establish a Sustainable Development and Information Security Committee in August 2025, which will be composed of at least 3 directors. In addition, considering administrative efficiency and resource integration, the Company will merge the Remuneration Committee and the Nomination Committee and rename them as the Remuneration and Nomination Committee (the Nomination Committee will be dissolved). In order to strengthen the Board of Directors’ supervisory function over the overall risks of the Company, the Audit Committee will add risk management-related matters to its functions and be renamed the Audit and Risk Management Committee. The Company established the above functional committees to improve the functions of the Company’s Board of Directors and strengthen the management mechanism..
(III) To implement corporate governance and enhance the function of the board of directors, and to establish performance targets to strengthen the efficiency of the board’s operation, HIWIN Technologies has established its Board of Directors Performance Evaluation Method in accordance with the letter dated December 27, 2018, Taiwan Securities Regulatory Commission (TSRC) Letter No. 1070025395. The method stipulates that performance evaluations of the board of directors, board members, remuneration and nomination committee, and audit and risk	None.

Evaluation item	Implementation status			Deviations from the Corporate Governance BestPractice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
			management committee should be conducted at least once a year. At the end of each year, the company's deliberative bodies will have board members complete self-evaluation questionnaires regarding the board of directors, board members, and functional committees, conducting self-evaluations and peer evaluations of the board's performance for the year. The performance evaluation results will be submitted to the board of directors for review and improvement in the first quarter of the following year (for details on the measurement items covered by the company's board of directors performance evaluation, please refer to page 21 of this annual report). The evaluation is conducted through internal questionnaires, assessing performance based on four main aspects: board operation, director participation, remuneration and nomination committee operation, and audit and risk management committee operation. The average score of the performance evaluation results for 2025 was above 4.7 out of 5, which is better than the standard. There were no major deficiencies or areas for improvement. The evaluation results have been included in the board meeting agenda on February 26, 2026. The evaluation results have been properly recorded and will be used as a reference for future director remuneration and election. (IV) In accordance with the Code of Conduct for Listed Companies, the Audit and Risk Management Committee of HIWIN Technologies regularly assesses the independence and competence of its certified public accountants annually. In addition to requiring certified public accountants to provide a "Declaration of Independence" and "Audit Quality Indicators (AQIs)," the assessment is conducted according to the standards and AQI indicators outlined in Note 8 (XI). It has been confirmed that the accountants and the Company have no financial interests or business relationships other than fees for certified public accountant and tax cases, and that the accountants' family members do not violate independence requirements. Furthermore, based on AQI information, it has been confirmed that the accountants and the firm's auditing experience and training hours are superior to the industry average. The assessment results of the accountants' independence and competence for the most recent two years were approved by the Board of Directors on February 26, 2026, and November 11, 2025, respectively. The assessment procedures and results are explained below.:
1. Acquisition and reference on AQI provided by CPA: The accounting firm was evaluated in five aspects and 13 AQI indicators. The Audit Committee analyzes and adopts the AQI indicators to evaluate the overall professionalism, quality control, supervision, and innovative ability of the quality auditors of the audit team and the firm. The evaluation result was good
2. Evaluation of Independence: CPAs and members of Audit Team have presented the letter of Statement of Independence
3. Evaluation of Suitability: The CPA has not served as director or independent director of the Company, and has no direct or materially indirect financial interests, not a shareholder of the Company. The CPA does not receive salary from the Company. The CPA is equipped with professional competence, participates in the Company's shareholder meeting, and attends the Audit Committee and Board of Director when necessary, and periodically provides educational training to the Company.
4. Conclusion: Deloitte & Touche CPAs have passed the auditing and meet the Company’s independence and suitability evaluation standards of the Company, who qualify as the CPAs of the Company.
IV. Does the TWSE/TPEx listed company have in place an adequate number of qualified corporate governance officers and has it appointed a chief corporate governance officer with responsibility corporate governance practices (including but not limited to providing information necessary for directors and supervisors to perform their duties, aiding directors and supervisors in complying with	V		To promote corporate governance and effectively play the functions of the Board of Directors, the Company has set up a full-time corporate governance unit under the jurisdiction of the Company’s finance department in accordance with the provisions of Article 20 and Article 22 of the “Taiwan Stock Exchange Corporation Operation Directions for Compliance with the Establishment of Board of Directors by TWSE Listed Companies and the Board's Exercise of Powers.” There are 3 employees are in charge of the corporate governance, the chief	None.

Evaluation item	Implementation status			Deviations from the Corporate Governance BestPractice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
laws and regulations, organizing board meetings and annual general meetings of shareholders as required by law, and compiling minutes of board meetings and annual general meetings)?			officer from the Finance Office serves as the part-time corporate governance supervisor, who has work experience in the material work for finance, stock affairs or auditing. The qualification conforms to the requirement by consolidate the corporate governance related affairs, under the following primary responsibilities:

(I) Responsible for providing information required for directors to execute the business, prepare meeting related matters for BOD and shareholders’ meeting, apply for company registration and change registration, prepare BOD and shareholders’ meeting minutes, as well as other corporate governance related matters, assist directors with taking the office and continuing education, provide directors with information required for executing the business, and assist the directors with legal compliance.

(II) Consult with each director before the meeting of the Board to plan and formulate the agenda, notify all directors at least 7 days before the meeting for attendance and provide relevant meeting materials, so that the directors can understand the content of the relevant issues in advance.

(III) Register the date of shareholder’s meeting before the time limit prescribed by the law every year. Prepare and report the meeting notice, meeting manuals and meeting minutes in accordance with the law, and handle the registration amendment after revising the articles of incorporation or reelecting the directors.

(IV) To ensure that members of the Board are informed of the Company’s material information in time, the Company informs Board members after issuing material information with no delay, arranges financial, business and other professional courses for directors to participate, and provide them the information required for business operations.

(V) Irregularly convene communication meetings with CPA, independent directors and auditing/financial/accounting officers in order to implement the internal audit/internal control system. Please refer to the company website for meeting minutes of the communication.

(VI) The Board of Directors is regularly notified of the revision and development of the latest laws and regulations related to the Company’s business field and corporate governance. Moreover, directors are assisted to take office and comply with regulatory requirement.

(VII) Secondary review, design and plan the Company’s overall internal control system to ensure corporate governance management measures to maintain effeminacy and flexibility, and coordinate related matters across department.

(VIII) Relevant matters related to the Board of Directors and shareholders’ meeting of 2025 fiscal year were successfully completed, and the business development status has been proposed in the Board Meeting on February 26, 2026. The main implementation is as follows:
1. Assist directors and independent directors in performing their duties, provide necessary information, and arrange their further education.
2. Assist with the procedures and legal compliance of board and shareholders’ meetings, such as reporting on corporate governance and handling the release of important information regarding board resolutions.
3. Draft board agendas, notify directors seven days in advance, convene meetings, and provide meeting materials. If any agenda item requires recusal, provide prior reminders. Complete the minutes of the board meeting within twenty days after the meeting.
4. Register shareholders’ meetings in accordance with the law, and prepare meeting notices, meeting procedures, and minutes within the statutory time limit.
5. Record/audio the entire shareholders’ meeting. After the meeting, disclose the audio/video files and minutes on the company's official website and public information observation platform. No shareholder questions were raised this year, as noted in the minutes.

The items above have been completed in 2025 fiscal year.

(IX) The head of corporate governance participated in the corporate governance courses organized by Taiwan Stock Exchange and other bodies in 2025 for a total of 15 hours. | |

Evaluation item	Implementation status			Deviations from the Corporate Governance BestPractice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
V. Has the Company established channels for communicating with its stakeholders (including but not limited to shareholders, employees, customers, suppliers, etc.) and created a stakeholders section on its company website? Does the Company appropriately respond to stakeholders' questions and concerns on important corporate social responsibility issues?	V		(I) The Company instructs related departments to communicate with stakeholders depends on different situations. There is a “Stakeholder Section” on the Company website for clients, suppliers, media and employees to contact the Company. In addition, the Company establishes a spokesperson system dealing with related issues of legal persons and investors. The Company reports to the Board of the communication status of each stakeholder at least once a year (II) The “Stakeholders Section” on the Company website provides a questionnaire for stakeholders to advise or query. A dedicated personnel of the Company can respond of critical issues concerning about the social responsibilities properly. In addition, the Company also implements a spokesperson system, website...etc., and establish mailbox for shareholders and stakeholders, setting up corresponding liaisons for business management and operation items. Moreover, on the “Stakeholder Section,” the Company stakeholders may use the mailbox of this section to contact the company chairman, general manager, independent director, or audit office, or contact with stakeholders for any related suggestions, doubts or complaints, establishing an effective and smooth communication channel.	None.
VI. Has the Company appointed a professional shareholder services agent to handle matters related to its shareholder meetings?	V		The Company entrusts affairs related to shareholders' meetings to professional shareholder services agency. For this fiscal year, Yuanta Securities is engaged for the handling.	None.
VII. Information Disclosure (I) Has the Company established a corporate website to disclose information regarding its financials, business, and corporate governance status? (II) Does the Company use other information disclosure channels (e.g., maintaining an English-language website, designating staff to handle information collection and disclosure, appointing spokespersons, webcasting investors conference etc.)? (III) Does the company publish and report its annual financial report within two months after the end of the fiscal year, and publish and report its financial reports for the first, second, and third quarters as well as its operating statements for each month before the specified deadlines?	V		(I) The Company has set up an “Investor Section” in Chinese and English on the company website, disclosing the financial operations and corporate governance information, and declared the relevant information on the path designated by the Financial Supervisory Commission according to the related laws and regulations (II) The Company website is in both Chinese and English, related information is published by relevant responsible department. The Company sets up a spokesperson system with spokesperson and acting spokesperson. Dedicated personnel handle corporate investors and investors for related questions. The corporate website also offers contact via phone and email. The Company in principal convenes 2 corporate investor conferences a year and announce the corporate investor conference information and film on the corporate website and MOPS. The corporate conferences were convened in May and November in 2025. (III) HIWIN Technologies voluntarily announced and filed its annual financial statements within two months after the end of the fiscal year. The financial statements for 2025 were issued on February 26, 2026. The financial reports for the first, second and third quarters (within 45 days) and the operating status for each month (before the 10th of each month) were all announced and filed ahead of schedule.	None.
VIII. Has the Company disclosed other information to facilitate a better understanding of its corporate governance practices? Yes, it is described as below: (I) Operational Performance: To implement corporate governance, apart from the established effective internal control system, implementing self-check processing, the Company also has independent directors, using their professional experience to enhance the practical experience of the team, in order to strengthen the function of the Board of Directors. To protect shareholder equity and enhance information transparency, the Company has established public information filing process by requirement, so that shareholders and stakeholders can fully understand the Company's financial operations and implementation of corporate governance. (II) Explanation of environmental protection expenditure information and labor-management relations (employee rights and employee care): Please refer to the explanation in IV. And V. in Part Five of this Annual Report. (III) Investor relations: The Company treats all shareholders with the principles of fairness and openness, convening shareholders' meeting in accordance with the Company Act and related laws, and notifying all shareholders for attendance to the Shareholders' Meeting by rules. The Company also offers the shareholders with full opportunities to ask or propose in order to maintain balance and formulate Shareholders' Meeting Rules by law, keeps custody of shareholders' meeting minutes on MOPS with full disclosure of relevant information. Furthermore, to ensure that shareholders have the rights to fully acknowledge the significant matters, to participate and

decide, the Company has not only announce all material information in time, announce in Chinese and English, but also has spokesperson and vice spokesperson for handling shareholder suggestions and concerns, to instantly respond to juristic and investors' questions, so that they will better understand the operation outcome and management of the Company.

(IV) Respect the rights and interests of Stakeholders:

The Company truthfully discloses corporate information in accordance with the law, in order to protect the basic rights and interests of investors, and to maintain an unobstructed communication channel with transacting banks, employees, consumers, and suppliers. The Company also establishes "Stakeholders Section" on the corporate website for stakeholders reaching out the Company in time. The Company respects and maintains the due legitimate rights and interests. Three employee opinion mailboxes are set up in the Company to encourage peers or stakeholders to express opinions or report of violations which will facilitate the Company growth and development.

The following table shows the statistics of the number of appeals received in 2025; all have been processed.:

Year	Corruptions or bribery	Management system	Unlawful Infringement	Employee welfare	Gender equality	Number of grievances resolved	Completion rate
2025	0	21	10	0	0	31	100%

No corruption or bribery cases were reported in 2025, and no related fines or convictions occurred.

(V) Enhance corporate governance and protect investors' rights and interests

To mitigate risks and diversify the potential for significant damage to the company and its shareholders due to the errors or negligence of its directors and managers, HIWIN Technologies has stipulated in Article 25 of its Articles of Association that directors may be legally liable for damages within the scope of their duties during their term of office, and has purchased liability insurance for them. This insurance was included in the Board of Directors' report dated May 8, 2026. The details of the insurance coverage are as follows:

Insured	Insurer	Amount insured	Insurance period
All directors and managerial officers	Union Insurance Co., Ltd.	USD5 million (Approximately NT$165,000 thousand)	2025/3/27~2026/3/27
All directors and managerial officers	Union Insurance Co., Ltd.	USD5 million (Approximately NT$159,300 thousand)	2026/3/27~2027/3/27

(VI) Directors' participation in related course regarding corporate governance and laws of the Company in 2025 are listed below:

Job title	Full name	Course date	Course name	Course hours
Chairman	Eddie W.H Chuo	2025/05/08	Training Program for Corporate Directors and Supervisors – Brand Media Management and Crisis Public Relations Handling	3
		2025/08/12	Trade Secret Management Mindsets and Strategies in Corporate Competition	3
Director	Eric Y.T. Chuo	2025/04/09	Corporate Sustainable Governance from a Risk Perspective: From Corporate Governance to ESG	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3
Director	Enid H.C. Tsai	2025/04/09	Corporate Sustainable Governance from a Risk Perspective: From Corporate Governance to ESG	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3
Director	Olivia S.Y. Chuo	2025/04/09	Corporate Sustainable Governance from a Risk Perspective: From Corporate Governance to ESG	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3
Director	Chin-Tsai Chen	2025/03/10	Practical ESG Sustainability Trends and Updates on Sustainability Regulations	1.5
		2025/05/12	Reshaping the International Order	1.5
		2025/08/11	Future Compliance Risk Trends in the Technology Industry from the Perspectives of Geopolitics and Sanctions	1.5
		2025/11/10	Labor dispute risk management	1.5
Director	Corporate representative of Sanko Investment Co., Ltd.: Jing-Yi Huang	2025/07/04	Series of Courses for Directors, Supervisors and Corporate Governance Executives - Domestic and International Development Trends of Carbon Pricing Mechanisms	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3
Director	Cheng-Lun Lee	2025/06/24-06/25	Practical Training Program for Directors and Supervisors (Including Independent Supervisors) and Corporate Governance Executives - Taipei Class	12
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3
Independent director	Cheng-Ho Chiang	2025/04/09	Corporate Sustainable Governance from a Risk Perspective: From Corporate Governance to ESG	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3

Independent director	Zhen-Yuan Chen	2025/07/17	Issuance, Impact and Response of IFRS S1 and S2 Sustainable Disclosure Standards	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3
Independent director	Hui-Xiu Lee	2025/04/09	Corporate Sustainable Governance from a Risk Perspective: From Corporate Governance to ESG	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3

(VII) Accounting Officer, Audit Officer, Corporate Governance Officer's participation in related course regarding corporate governance and laws of the Company in 2025 are listed below:

Job title	Full name	Course date	Course name	Course hours
Deputy General Manager of the Chairman's Office (Accounting Supervisor)	Ke-Huang Liao	2026/01/15-01/16	Continuing Education Course for Issuers, Securities Firms, and Stock Exchanges	12
Manager, Chairman's Office (Audit Officer)	Chen, Shih-Tsung	2025/06/24	Key Discussions on Legal and Regulatory Compliance, Internal Control, and Internal Audit	6
		2025/10/14	Generative AI and AI Data Protection: Essential Knowledge for Internal Auditors	6
Senior Vice President, Finance Division (Corporate Governance Manager)	Yue-Chin Wu	2025/04/09	Corporate Sustainability Governance from a Risk Perspective - From Corporate Governance to ESG	3
		2025/07/25	Green and Transformational Finance Action Plans - Sustainable Development Blueprint and Directors' Responsibilities	3
		2025/08/12	Business Secret Management Thinking and Strategies in Corporate Competition	3
		2025/09/25	How Enterprises Can Conduct Natural Financial Disclosure Regarding TNFD and Biodiversity	3
		2025/12/12	Case Studies and Legal Liability Analysis of Greenwashing and False Sustainability Reports	3

(VIII) The status of the relevant personnel of the Group Company's accounting audit obtaining relevant domestic and international certificates:
There are 8 CPAs of the Republic of China, 1 AICPA, and 3 licensed accountants of other countries, 2 CIA with international internal auditor's license; accounting supervisor and internal auditing supervisor both have CPA license.

(VIII) The company places special emphasis on information transparency and disclosure. It regularly or irregularly discloses relevant information on the Market Observation Post System (MOPS) or the company's website. In 2025, it released a total of 34 significant messages in both Chinese and English, enabling investors to stay informed about the company's operational status and important updates in a timely manner.

(X) Intellectual property management plan and implementation:

Formulation of Intellectual Property Management Policy, Objectives, and Systems Related to Operations and Strategies In order to strengthen its industry leadership and safeguard hard-earned R&D technological achievements, HIWIN has developed an intellectual property strategy that integrates with the company's operational goals and R&D resources. This strategy is led by the Legal Affairs Department under the Chairman's Office, in coordination with relevant units. In line with the spirit of intellectual property rights management policies, specific objectives and systems are set for various intellectual property rights, ensuring compliance by relevant units. This is aimed at avoiding infringement of others' intellectual property rights during the production or marketing processes, creating a comprehensive layout of intellectual property rights for products, establishing effective communication channels for relevant units to work closely with the intellectual property unit in making informed intellectual property decisions, and continuously improving management systems.
Acquisition, Protection, Maintenance, and Utilization Management System for Intellectual Property Since its inception, HIWIN has developed a long-term development blueprint with innovation in R&D and brand marketing as its core values. It has established research and development centers and laboratories in locations such as Taiwan, Tokyo, Germany (Offenburg), Moscow, Israel, with over 500 R&D personnel. To maintain its competitive advantage in the precision linear motion components field and system technology products, and aspiring to become the leading brand in this sector, HIWIN remains dedicated to product R&D and technological innovation. The intellectual property unit closely collaborates with the R&D unit to construct a comprehensive and robust patent barrier.
Provision of Adequate Resources for Effective Implementation and Maintenance of Intellectual Property Management Systems Based on the core values of innovative R&D and brand marketing, HIWIN allocates 3% - 7% of annual revenue to R&D expenditures, and the expenditure for the hardware and software construction of the intellectual property system is also relentless. , and there is an intellectual property unit dedicated to managing and maintaining the Company's intellectual property system, and regularly reports the status of intellectual property rights management to the Company's senior management. For innovative outputs, the expenses spent on applying for intellectual property rights protection, in 2025 and 2024, respectively, have invested NT$30,207 thousand and NT$40,329 thousand.
Monitor internal and external risks and opportunities related to intellectual property management and take corresponding measures.

To ensure the effective operation of its intellectual property management system, HIWIN Technologies continuously monitors changes in the internal and external environment, identifies potential risks and development opportunities, and takes appropriate countermeasures to maintain the company's technological advantages and competitiveness. The company regularly tracks updates to intellectual property regulations in major industrialized countries and, through patent and trademark searches and regular monitoring, understands the intellectual property layout of its competitors and assesses legal risks. Simultaneously, it proactively secures intellectual property rights for innovative technologies to ensure proper protection of R&D results and has implemented a trade secret registration system to strengthen the retention and management of trade secrets.

Plan and implement a continuous improvement mechanism to ensure the operation and effectiveness of the intellectual property management system meet company expectations.

HIWIN Technologies has established and operates a continuous improvement mechanism. Through regular reviews of intellectual property management processes and risk assessments, combined with audits, system revisions, cross-departmental communication, and enhanced training, the company ensures that its intellectual property management system can be optimized in response to the company's strategic development, thereby improving the effectiveness of intellectual property protection and utilization.

Implementation

HIWIN strengthens its intellectual property management system through the third-party fair certification unit in order to completely protect the intellectual property outcome. The main executions in recent fiscal years are described below:

(1) Introduced Taiwan Intellectual Property Management Standards (TIPS) between 2014~2017.

(2) The intellectual property department continues to deepen the intellectual property management system since 2018, establishing the control points of effective intellectual property right system and expanding and introducing TIPS to all factories (Taichung, Yunlin, and Chiayi).

(3) Starting 2017, the Company has rigorously defeated the counterfeits in global market. The logo of the company is accumulated to 652,062 slides and 12,086 packages for counterfeit slides confiscated.

(4) In 2019, General Manager Enid H.C. Tsai was invited by the TIPS to lecture on theme about "Intellectual Property Management Obligations for TWSE/TPEx Company Board of Directors," sharing the management experience of the Company in intellectual property.

(5) Starting 2021, the Company implements the business secret registration system, in order to make the management of business secrets with more precision through the registration of business secrets, in addition to rigorously control the retrieval and audit of the business secret. This will avoid leak of business secret and there are currently 309 business secrets registered.

(6) Starting from 2021, the Company implements logo usage evidence collection system to periodically check the use of logo for the Company products and ensure the validity of logo registered by the Company.

(7) Continue to upgrade the legal concepts in supervisors, suing the legal controversies occurring the company each year as teaching case, so that supervisors of all levels can examine if the responsible department encounters similar legal problems, and thereby improving the management system of the department.

(8) Provide the five-stage patent course educational training to new R&D employees, including: introduction to patent manual framework, patent index metho, patent proposal techniques, patent approval rebuttal, patent infringement identification, in order to develop the patent basic knowledge in R&D employees.

(9) Regularly review the patent applied by others and propose reporting, objection or invalid declaration procedures for patents that could impede the Company's product development, in order to lower the risk of infringement.

(10) Regularly review the trademarks registered by others and propose opposition, invalidation or revocation for trademarks that could impede the Company's brand development, in order to lower the risk of infringement.

(11) Intellectual property related execution has been reported to the directors at the Board of Directors meeting held on November 11, 2025.

Outcomes:

(1) Patents

A total of 77 patent applications were submitted, and 69 patents were granted. As of the end of 2025, there were 1,942 patents that have been obtained and are still effective.

The R&D results have been a leading edge in the metal and steel and precision machinery fields in Taiwan, and the Company will continue to maintain its leadership.

(2) Combating Counterfeit

The mainland registration number 18961112 and 18961115 color combination trademarks owned by HIWIN were selected by the mainland authorities as the top 10 typical trademark infringement cases in Wenzhou in 2017, top 10 typical cases of administrative protection by State Intellectual Property Office in 2019, typical case of protection knowledge and property right comprehensive law enforcement in 2020, the top 10 typical cases of knowledge and intellectual property protection by People's Court in Linqing City in 2021, and the color combination trademark infringement case determined by trade infringement standards in 2022.
By monitoring mainland e-commerce platforms, filing complaints and deleting sales links that infringe on the Company's color combination trademark rights, and suing online sellers with more serious infringements, maintain the Company's online brand and reputation.
From 2018 till now, the Company has won the lawsuits filed against 5 Chinese companies for infringement of the Company's invention patent rights under Announcement No. 100425901 in Mainland China. This demonstrates the Company's innovative energy and determination to protect intellectual property rights.

(XI) Assess the independence and competence of the appointed accountant by referring to the Audit Quality Index (AQI).

Independence assessment:

Items	Evaluation item	Evaluation Results	In compliance with independence
1	Whether the certifying CPA has any material financial interest in the Company	No	Yes
2	Whether the certifying CPA has any financing or guarantee arrangements with the Company or its directors	No	Yes
3	Whether the certifying CPA has any close business relationship or potential employment relationship with the Company	No	Yes
4	Whether there are any contingent fees related to the audit engagement	No	Yes
5	Whether any member of the audit team currently serves or has served within the past two years as a director, officer, shareholder of the Company, or in a position that has a significant influence on the audit engagement	No	Yes
6	Whether the certifying CPA holds any shares of the Company	No	Yes
7	Whether the non-audit services provided by the certifying CPA to the Company directly affect significant matters of the audit engagement	No	Yes

8	Whether the certifying CPA acts as the Company’s advocate or represents the Company in resolving disputes with other third parties	No	Yes
9	Whether the certifying CPA has any familial relationship with the Company’s directors, officers, or personnel in positions that have a significant influence on the audit engagement	No	Yes
10	Whether any former engagement partner within one year after resignation serves as a director, officer, or in a position that has a significant influence on the audit engagement of the Company	No	Yes
11	Whether the certifying CPA has accepted any gifts or benefits of significant value from the Company or its directors or officers that exceed ordinary social courtesy standards	No	Yes
12	Whether the certifying CPA provides services to the Company’s personnel in the capacity of a director, officer, or equivalent position	No	Yes
13	Whether the certifying CPA complies with the independence requirements set forth in Statement of Auditing Ethics No. 10 and has obtained a written Independence Declaration issued by the certifying CPA	Yes	Yes

Competence assessment:

Items	Evaluation item	Evaluation Results	In compliance with independence
1	Whether the CPA and senior audit personnel possess sufficient audit experience to perform the audit engagement	Yes	Yes
2	Whether the CPA and senior audit personnel receive adequate continuing professional education each year to maintain and enhance their professional knowledge and skills	Yes	Yes
3	Whether the CPA firm maintains an adequate level of experienced human resources	Yes	Yes
4	Whether the CPA firm has sufficient qualified professionals to support the audit team	Yes	Yes
5	Whether the CPA’s workload is reasonable and appropriate	Yes	Yes
6	Whether the number of hours devoted by audit team members at each phase of the audit is appropriate	Yes	Yes
7	Whether the engagement quality control reviewer devotes sufficient time to perform the review of the audit engagement	Yes	Yes
8	Whether the CPA firm has sufficient quality control personnel to support the audit team	Yes	Yes
9	Whether the proportion of fees derived from non-audit services charged by the CPA firm does not impair its independence	Yes	Yes
10	Whether the CPA firm’s provision of certified financial reporting and audit services does not impair its independence	Yes	Yes
11	Whether the CPA firm’s quality control procedures are implemented in accordance with applicable laws and standards when addressing deficiencies and sanctions identified through external inspections	Yes	Yes
12	Whether the CPA firm’s quality control procedures are implemented in accordance with applicable laws and standards in response to improvement directives issued by competent authorities	Yes	Yes
13	Whether the CPA firm has implemented or planned initiatives or programs related to enhancing audit quality within the past three years	Yes	Yes

(XII) Regulations governing the material trading of the stakeholders’ financial business:

The Company has stipulated the written regulations governing the group enterprises and stakeholder trading, including purchase/sales transaction, acquiring or disposing of asset management procedures, with amendment in 2023 and adoption by the Board of Directors on May 10, 2023. The Company purchases/sells goods from affiliates, conduct labor affairs or technical service trading, acquiring or disposing assets. It is projected that the annual transaction amount will reach the consolidated total assets or the latest period of 5% of annual consolidated sales revenue net worth. Apart from applying the Regulation Governing the Acquisition and Disposal of Assets by Public Companies, or the mutual transactions between the Company and parent company and between the subsidiaries, the various material transaction data should be submitted to the Board of Directors for adoption before proceeding. Moreover, the latest shareholders’ meeting report should be submitted. The Company has not purchase/sold from affiliates (or transactions between subsidiaries) or acquired or disposed assets in conformity with material transaction in 2025, and therefore does not need to report to the BOD or Shareholder’s meeting.

IX. Please describe improvements that have already been made based on the Corporate Governance Evaluation results released for the most recent fiscal year by the Corporate Governance Center, Taiwan Stock Exchange, and specify the priority enhancement objectives and measures planned for any matters still awaiting improvement.

The Corporate Governance Center of Taiwan Stock Exchange Co., Ltd. announced the 12th corporate governance evaluation. The Company ranked 6%–20% of the listed companies, which shows that the efforts in implementing corporate governance has achieved some results. The following items without receiving any scores are described below:

Whether the annual report discloses the individual remuneration of the president and vice presidents: The Company has no plan to disclose the individual remuneration of the president and vice presidents.
Director performance evaluation method: To realize corporate governance and enhance the Board of Directors’ function, performance targets are set to improve the Board of Directors’ efficiency. The Company has stipulated the Board of Directors performance evaluation regulations per letter no. 1070025395 of the Taiwan Governance Code on December 27, 2018, which was approved by the board on November 12, 2019. The Company’s agenda unit will invite board directors and functional committee members to complete self-assessment questionnaires to conduct the annual board performance assessment. The assessment outcome

was presented to the board meeting in Q1 for review and improvement. The board performance in 2025 was evaluated as excellent, and there were no major shortcomings. The results were included in the board meeting on February 26, 2026. The Company is evaluating of an external agency should be employees for assessing the director performance.

(IV) Composition, Responsibilities and Operation of the Remuneration Committee and Nomination Committee:

Remuneration and Nomination Committee:

The Compensation and Remuneration Committee of HIWIN Technologies consisted of three members, all independent directors, with independent director Cheng-Ho Chiang serving as chairman and convener. On August 12, 2025, this committee merged with the Nomination Committee and was renamed the Compensation and Nomination Committee (the Nomination Committee was simultaneously dissolved). Independent director Hui-Xiu Lee was appointed as chairman and convener, possessing expertise in finance. Other members possess expertise in finance, accounting, and corporate management, meeting the professional requirements of the Compensation and Nomination Committee.

(1) Information of Remuneration Committee Members

Conditions		Professional qualification and experience	Independence	Other public companies in which serving as an independent director
Capacity	Full name
Chairman and Convener (Independent director)	Hui-Xiu Lee	The Company's Remuneration and Nomination Committee consists of 3 independent directors. Please refer to the "Director Information" of this annual report for the professional qualifications and experience of the committee members.	Being an independent director and complying with the independence circumstances stipulated in Article 14-2 of the Securities and Exchange Act and the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" (Note), including but are not limited to: 1. A natural-person shareholder, spouse, relative within the second degree of kinship (under other's name) hold any shares in the company. 2. There were no such circumstances that providing commercial, legal, financial or accounting or related services to the Company or its affiliates in the past two years.	0
Member (Independent director)	Zhen-Yuan Chen			1
Member (Independent director)	Cheng-Ho Chiang		Being an independent director and complying with the independence circumstances stipulated in Article 14-2 of the Securities and Exchange Act and the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" (Note), including but are not limited to: 1. The independent director himself, spouse, and relatives within two degrees of kinship (using other people's names) hold 242,489 shares (0.06%) of the company's shares, which is less than 1%, thus meeting the requirements for independence of independent directors. 2. There were no such circumstances that providing commercial, legal, financial or accounting or related services to the Company or its affiliates in the past two years.	0

Note: There is not any of the following circumstances occurred during the two years before being elected or during the term of office:
① An employee of the company or any of its affiliates;
② A director or supervisor of the company or any of its affiliates (However, it does not apply to independent directors appointed in accordance with the Act or the laws and regulations of the local country by, and concurrently serving as such at, a public company and its parent or subsidiary or a subsidiary of the same parent.).
③ A natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of $1\%$ or more of the total number of issued shares of the company or ranking the top-10 in shareholdings;
④ A spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of a managerial officer in subparagraph 1 or any of the persons in subparagraphs (2) and (3);
⑤ $5\%$ or more of the total number of issued shares of the company, or that ranks among the top five in shareholdings, or that designates its representative to serve as a director of the company under Article 27, of the Company Act;
⑥ A director, supervisor, or employee of a company that has a majority of its director seats or voting shares controlled by the same person as those of the company;
⑦ A director (executive), supervisor (supervisor) or employee of another company or institution who is the same person or spouse of the company's Chairman, President, or person with equivalent positions;

8 A director (executive), supervisor (supervisor), managerial officer, or shareholder holding 5% or more of the shares of a specified company or institution that has a financial or business relationship with the company;
9 A professional individual who, or an owner, partner, director (executive), supervisor (supervisor), or managerial officer of a sole proprietorship, partnership, company, or institution that, provides auditing services to the company or any affiliate of the company, or that provides commercial, legal, financial, accounting or related services to the company or any affiliate of the company for which the provider in the past 2 years has received cumulative compensation exceeding NT$500,000, or a spouse thereof; provided, this restriction does not apply to a member of the company's remuneration committee;

(2) The duties of a Remuneration and Nomination Committee

To assist the Board of Directors in implementing and periodically reviewing the policies, systems, standards, and structures governing the compensation of the company's directors and managers; to formulate selection criteria for the composition and qualifications of Board members and senior managers; and to select and review candidates for directors and senior managers. With the care of a prudent manager, to faithfully perform the following duties and submit recommendations to the Board of Directors for discussion. Its main responsibilities are as follows:

Periodically review the organization's procedures and corporate governance practices and propose amendments.
Formulate and periodically review the company's policies, systems, standards, and structures governing the performance evaluation and compensation of its directors and managers.
Periodically evaluate and determine the compensation of the company's directors and managers.
Formulate selection criteria for the composition and qualifications of Board members and senior managers; and select and review candidates for directors and senior managers.
Plan and implement performance evaluations of the Board of Directors, functional committees, board members, and senior managers.
Plan and implement professional development programs for directors.

(3) When exercising its powers, the Remuneration and Nomination Committee shall adhere to the following standards:

Ensure that the company's remuneration arrangements comply with relevant laws and regulations and are sufficient to attract outstanding talent.
The performance evaluation and remuneration of directors and managers shall refer to the usual standards of the industry and consider the reasonableness of their correlation with individual performance, company operating performance, and future risks.
The Committee shall not encourage directors and managers to engage in activities that exceed the company's risk tolerance in pursuit of higher remuneration.
The proportion of short-term performance bonuses for directors and senior managers and the timing of certain variable remuneration payments shall be determined with consideration of industry characteristics and the nature of the company's business.
Committee members shall not participate in the discussion or voting on their individual remuneration decisions.
Based on the company's size and business needs, the Committee shall seek suitable candidates for directors and senior managers, evaluate candidates based on multiple aspects including business management, crisis management, industry knowledge, and international market perspective, and promote diversity in the composition of the Board of Directors and management team.
When nominating candidates for independent directors, attention should be paid to the nominees' qualifications, professionalism, integrity, and other concurrent positions, and they should meet the standards for independent directors set by the stock exchange.

(4) Status of the Remuneration and Nomination Committee:

On May 28, 2025, HIWIN Technologies held its annual shareholders' meeting and elected new independent directors. The newly elected independent directors took office on the date of election (term of office from May 28, 2025 to May 27, 2028).
The Remuneration and Nomination Committee held 3 meetings(A). in 2025 The attendance of independent directors is as follows:

Job title	Full name	Meetings Attended in Person (B)	Meetings Attended by Proxy	Actual Attendance rate (%) (B/A)	Remark
Chairman and convener	Hui-Xiu Lee	3	0	100%	Re-election
Member	Cheng-Ho Chiang	3	0	100%	Re-election
Member	Zhen-Yuan Chen	3	0	100%	Re-election
Review salary and compensation regularly: The function of the Company’s salary and compensation committee is to evaluate the salary and compensation policies and systems of the directors and managers of the Company in a professional and objective position. The meeting is

called at least twice a year and may be held at any time as necessary to make recommendations to the BOD for reference in decision- making.

Other information required to be disclosed:

I. If the Board does not adopt or revise proposals of the Committee, the Board meeting date, session, content of the motion, the Board direction, and the Company's response to the Remuneration Committee's opinions shall be properly recorded (for example, if the remuneration package approved by the Board is superior to that suggested by the Remuneration Committee, the difference and the reasons must be noted): None.
II. Should a committee member oppose or revise their opinion regarding any decision made by the Remuneration Committee and their opinion has been recorded or submitted in a written statement, the committee meeting date, session, content of the motion, opinions of all members, and the response to the opinions shall be recorded: None.

③ The Nominating Committee’s date of meetings, motion content, proposal outcome, and the Company’s treatment to the opinions of the Nominee Committee in the most recent fiscal year:

Date of Remuneration Committee meeting (Session)	Proposal description	Resolution adopted by the Remuneration Committee	The Company’s treatment to the opinions of the Remuneration Committee
2025.02.26
7th meeting, 5th Term	Directors and Managers Remuneration Audit Report	All attending committee members are informed.	-
	Proposal to distribute the 2024 employee remuneration and director remuneration.	The proposal was resolved to pass as it was unanimously by all members present at the meeting upon inquiry by the chair, and to be submitted to the Board for discussion.	The proposal was approved by all attending directors.
2025.08.12
1st meeting, 6th Term	Directors and Managers Remuneration Audit Report	All attending committee members are informed.	-
	The proposal to merge the "Compensation and Remuneration Committee" and the "Nomination Committee" and rename them the "Compensation and Nomination Committee";
The proposal to amend the "Compensation and Remuneration Committee Organizational Regulations" and rename it the "Compensation and Nomination Committee Organizational Regulations".	The proposal was approved by all attending committee members after the chairman consulted with them and was submitted to the board of directors for discussion.	The proposal was approved by all attending directors.
	Amendment to the "Director Performance Appraisal and Remuneration System"	He involves the personal interests of Committee Members Cheng-Ho Chiang, Zhen-Yuan Chen, and Hui-Xiu Lee. Therefore, the discussion and voting on this case were conducted by having each of them recuse themselves. The discussion resulted in the unanimous approval of the proposal by all committee members.
2025.11.10
2nd meeting, 6th Term	2025 Annual Report on the Implementation of Directors' Professional Development	All attending committee members are informed.	-
	Directors and Managers Remuneration Audit Report
	In conjunction with the renaming of the Company's Compensation and Salary Committee, a proposed amendment to the relevant rules and regulations is requested.	The proposal was approved by all attending committee members after the chairman consulted with them and was submitted to the board of directors for discussion.	The proposal was approved by all attending directors.
	Amendments to the Company's "Corporate Governance Practices Code"

Nominating Committee:

(1) The Nomination Committee shall abide by the authorization of the Board of Directors with good care to faithfully perform the following duties and be responsible to the Board of Directors. The Committee shall also report or submit the resolution results to the Board for discussion:

① Formulate the composition, qualification and criteria, as well as other election standards needed for BOD members and executives, electing and auditing the candidates for directors and executives.
② Plan and execute the performance evaluation on the BOD, functional committee members, directors, and executives.
③ Plan and execute continuous education program for directors.
④ Audit the articles of incorporation and corporate governance best practice principles. Information of the Nominating Committee members:

(2) Information on the Operation of the Nomination Committee

① The Nomination Committee of HIWIN Technologies consists of 3 members, all of whom are independent directors. The committee chairman and convener, Cheng-Ho Chiang, is an independent director with expertise in finance. The other members possess expertise in finance, accounting, and corporate management, meeting the professional requirements for the Nomination Committee.
② The term of office for this committee is from May 28, 2025 to May 27, 2028. The Nomination Committee held three regular meetings and one extraordinary meeting in 2025. The attendance rate was 100% for all meetings:

Job title	Full name	Meetings Attended in Person	Meetings Attended by Proxy	Actual Attendance rate (%)	Remark
Chairman and convener	Cheng-Ho Chiang	4	0	100%	Re-election
Member	Zhen-Yuan Chen	4	0	100%	Re-election
Member	Hui-Xiu Lee	4	0	100%	Re-election
Other information required to be disclosed: Should a committee member oppose or revise their opinion regarding any decision made by the Nomination Committee and their opinion has been recorded or submitted in a written statement, the committee meeting date, session, content of the motion, opinions of all members, and the response to the opinions shall be recorded: None.

③ The Nominating Committee's date of meetings, motion content, proposal outcome, and the Company's treatment to the opinions of the Nominee Committee in the most recent fiscal year:

Date of Nominating Committee meeting (Session)	Proposal description	Resolution adopted by the Nomination Committee	The Company's treatment to the opinions of the Nomination Committee
2025.02.26
8th meeting, 2nd Term	2024 Performance Evaluation Report on the Board and functional Committees
2024 Performance Evaluation Report on Senior Managers
2025 Board of Directors' Professional Development Plan Report
(No matters were discussed by the Nominating Committee)	Known by all attended members	-
2025.04.09
9th meeting, 2nd Term	Nomination of Candidates for the 13th Board of Directors and Review of Independent Director Qualifications	The proposal was resolved to pass as it was unanimously by all members present at the meeting upon inquiry by the chair, and to be submitted to the Board for discussion.	The proposal was approved by all attending directors.
2025.08.12
1st extraordinary meeting, 3rd Term	Senior Management Position Adjustment Proposal
	General Manager Enid H.C. Tsai to be appointed as Co-CEO
	Managerial Promotion Proposal
2025.08.12
1st meeting, 3rd Term	The functions and organizational regulations of the company's "Nomination Committee" will be merged into the "Salary and Compensation Committee," and the "Nomination Committee" and its organizational regulations will be dissolved and abolished.

Sustainable Development and Cybersecurity Committee:

(1) Information on members of the Sustainable Development and Cybersecurity Committee:

The Sustainable Development and Cybersecurity Committee of HIWIN Technologies was established on August 12, 2025. It consists of 3 members, appointed by the Board of Directors. The Chairman and convener of the committee is Independent Director Zhen-Yuan Chen, who possesses expertise in environmental management, carbon auditing (ISO14064-1), environmental accounting,

and material flow cost accounting (ISO14051). Director Eddie W.H. Chuo possesses expertise in corporate sustainability and ESG strategy management, and Director Cheng-Lun Lee possesses expertise in environmental conservation. These members meet the professional requirements for members of the Sustainable Development and Cybersecurity Committee.

Capacity	Conditions	Professional qualification and experience	Independence	Other public companies in which serving as an independent director
Chairman and Convenor (Independent director)	Zhen-Yuan Chen	The Company's Sustainability and Cybersecurity Committee consists of three directors. For the professional qualifications and experience of the committee members, please refer to the "Information on Directors" section of this Annual Report.	Being an independent director and complying with the independence circumstances stipulated in Article 14-2 of the Securities and Exchange Act and the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies" (Note), including but are not limited to: 1. A natural-person shareholder, spouse, relative within the second degree of kinship (under other's name) hold any shares in the company. 2. There were no such circumstances that providing commercial, legal, financial or accounting or related services to the Company or its affiliates in the past two years.	1
Member (Director)	Eddie W.H. Chuo		Not applicable	0
Member (Director)	Cheng-Lun Lee			0

(2) Responsibilities of the Sustainable Development and Cybersecurity Committee

The Sustainability and Cybersecurity Committee, authorized by the Board of Directors, shall, with the care of a prudent manager, faithfully perform the following duties and submit reports or discussions to the Board of Directors in order to assist the Board in continuously promoting corporate sustainability and improving cybersecurity governance, thereby achieving the goal of sustainable operation:

① Formulate the company's sustainable development direction, strategies, and objectives, and formulate relevant management policies and specific implementation plans.
② Track, review, and revise the implementation and effectiveness of corporate sustainability development.
③ Supervise matters related to sustainability information disclosure and review sustainability reports.
④ Monitor the company's management of existing or potential sustainability issues (including climate/nature and biodiversity).
⑤ Formulate the company's cybersecurity development direction, strategies, and objectives, and supervise the implementation of the company's information security management system, technical standards, and maintenance operations.
⑥ Supervise the company's code of conduct for sustainable development or other matters resolved by the Board of Directors to be handled by this Committee.

(3) Operation of the Sustainability and Cybersecurity Committee: All major sustainability and cybersecurity-related issues reviewed by the Sustainability and Cybersecurity Committee are submitted to the Board of Directors for discussion or approval according to their proposal nature, and are incorporated into the company's annual operating plan, risk management, and performance tracking mechanism to ensure that the sustainability strategy is consistent with the company's overall business direction and to effectively implement the Board of Directors' oversight functions. The term of office for this committee is from August 12, 2025 to May 27, 2028. The Sustainability and Cybersecurity Committee held one regular meeting in 2025, with the following attendance rate: 100% for all committee members:

Job title	Full name	Meetings Attended in Person	Actual Attendance rate (%)	Remark
Chairman and convener	Zhen-Yuan Chen	1	100%	Newly-elected
Member	Eddie W.H. Chuo	1	100%	Newly-elected
Member	Cheng-Lun Lee	1	100%	Newly-elected

| I. Regarding the resolutions of the Sustainable Development and Cybersecurity Committee, if any member objects or reserves an opinion and there is a record or written statement, the date, session, content of the resolution, all members' opinions, and the handling of those opinions should be stated: No such situation exists.
II. The meeting dates, resolution contents, and resolutions of the Sustainable Development and Cybersecurity Committee in the most recent year, as well as the company's handling of the committee's opinions, are as follows: | | | |
| --- | --- | --- | --- |
| Date of Nominating Committee meeting (Session) | Proposal description | Resolution adopted by the Sustainable Development and Cybersecurity Committee | The Company’s treatment to the opinions of the Sustainable Development and Cybersecurity Committee |
| 2025.11.10
1st meeting, 1st Term | ESG Executive Committee Sustainability Progress Report; Cybersecurity Executive Committee Report (No items were discussed at this Sustainability and Cybersecurity Committee meeting) | Known by all attended members | - |

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

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
I. Has the Company established a governance framework for promoting sustainable development, and established an exclusively (or concurrently) dedicated unit to be in charge of promoting sustainable development? Has the board of directors authorized senior management to handle related matters under the supervision of the board?	V		To promote sustainable development, the Company established the CSR Committee in 2014 and changed its name to the ESG Committee in 2021. It is the highest-level decision-making center for sustainable development within the Company. The Chairman authorizes the President to be responsible for formulating the Company's vision for sustainable development, and chairs the ESG Committee. Starting in 2021, monthly meetings will be convened to discuss material issues such as environmental, social, and legal aspects of sustainable development such as energy conservation and carbon reduction with senior executives of relevant units. After identifying risks, propose countermeasures risk management policies and mid- and long-term sustainable development plans. The committee members include the top executives of relevant units such as the Chairman's Office, Product Development Department, Manufacturing Department, Management Department, Industrial Safety and Environmental Protection Department, Human Resources Department, Finance Department, and the planning team. The Company considers sustainability issues from the product development stage and regularly (at least once a year) reports its annual implementation plan and results to the Sustainability and Cybersecurity Committee and the Board of Directors after discussion and approval by the Committee. These reports are also included in the Board's report agenda. The implementation direction, results, benefits, and future goals for 2025 were reported to the Board of Directors in February, May, August, and November 2025, respectively. The Board heard reports from the ESG team, and the agenda included: (1) Sustainability issues of concern and countermeasures. (2) Goals and policies for sustainability-related issues. (3) Supervising the implementation of sustainable management plans and evaluating the implementation. After listening to the report, the directors put forward their opinions or suggestions, and the ESG Committee is invited to join the discussion and serve as a reference for the management team to adjust strategies.	None.
II. Does the Company conduct risk assessments on environmental, social and corporate governance issues related to company operations in accordance with the principle of materiality, and establish relevant risk management policies or strategies?	V		Risk management structure and policies: This disclosure covers the sustainable development performance of the Company's Taiwan base from January to December 2025. The risk assessment boundary is mainly based on the Company, while the subsidiaries are not yet included in the risk assessment boundary. According to the structure in ISO 31000, the Company established the "Risk Management Policy" on August 5, 2020, which the Board of Directors approved as the Company's highest guiding principle for risk management. The disclosure covers the sustainable development performance at the Company's main production bases in Taiwan during January to December 2025. To strengthen the Board's oversight of overall corporate risk, in August 2025, the Board approved the addition of risk management-related matters to the Audit Committee's powers and renamed it the "Audit and Risk Management Committee." Composed of three independent directors, this committee serves as the Company's highest-level risk oversight unit. The Risk Management Committee holds at least two risk factor identification meetings annually to identify risks that may affect the Company's sustainable development. It also formulates risk management policies for each risk, including management objectives and response measures, and implements these policies to effectively identify, measure, and control the Company's various risks, keeping them within acceptable limits. In addition to operational and financial risks, the Company's risk management framework also includes ESG-related risks such as climate change, regulatory compliance, human rights, cybersecurity, and supply chain risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board. Risk management procedure: 1. Risk identification:	None.
			2. Risk identification and risk management strategies for the Company's public health and safety risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board. Risk management procedures: 1. Risk identification and risk management strategies for the Company's public health and safety risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board. Risk management procedures: 2. Risk identification and risk management strategies for the Company's public health and safety risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board. Risk management procedures: 3. Risk identification and risk management strategies for the Company's public health and safety risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board. Risk management procedures: 4. Risk identification and risk management strategies for the Company's public health and safety risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board. Risk management procedures: 5. Risk identification and risk management strategies for the Company's public health and safety risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board. Risk management procedures: 6. Risk identification and risk management strategies for the Company's public health and safety risks, which are regularly reviewed by the Audit and Risk Management Committee and reported to the Board.

Item	Implementation
	Yes	No	Summary description
			Every year, the Company conducts analysis on material issues with reference to internationally accepted guidelines for preparation of reports. Through research reports, documentation, and inspections of internal and external significant stakeholders, the content and priority order of each topic, operations-related risks, social and corporate governance issues and formulate relevant risk management strategies. The risk boundary assessment focuses on the Company's plants in Taiwan, including Taichung Plant, Yunlin Plant, and Dapumei Plant. It is expected that other domestic and foreign subsidiaries will be included in the future.
2. Risk analysis:
The Committee analyzes the identified risks based on the principle of materiality, and through the external expert's suggestion on the Company's examination, to assess the materiality issues most suitable for the Company, and the functional organizations continue to communicate and interact with stakeholders, for the good management of material issues related to environmental, social and corporate governance, by identifying material risks and opportunities based on the level of risk exposure, and conduct the risk analysis of climate change based on the aspect of policy and regulations, market, and production/manufacturing, to assess potential impacts. Based on the results from financial impact assessment of risks and opportunities propose the relevant measures and action plans in response. ESG Committee and the Risks Management Committee, with reference to the framework of recommendations on climate-related financial disclosures, conducts various assessments of risks and opportunities, and the performance is still good.
3. Risk response and operation:
HIWIN Technologies' various responsible units have proposed significant risk mitigation measures to address issues such as operational risks, credit and financial risks, climate change risks, industry change risks, human resource risks, intellectual property risks, cybersecurity risks, litigation risks, supply chain risks, regulatory risks, and industrial and environmental risks. For high-risk issues, in addition to regularly reporting on the risk status and strengthening control plans at risk management team meetings, they are also submitted to the Risk Management Executive Committee for oversight and review. The Risk Management Executive Committee reports to the Audit and Risk Management Committee and the Board of Directors at least once a year. The risk strategy and key contingency plans for 2025 have been included in the Board of Directors' reports dated August 12, 2025, and February 26, 2026.
III. Environmental Issues
(I) Does the Company establish an appropriate environmental management system based on the characteristics of its industry?
(II) Is the Company committed to improving energy efficiency and using recycled materials with low impact on the environment?
(III) Does the Company evaluate the potential risks and opportunities posed by climate change to the Company at present and in the future, and take relevant countermeasures?
(IV) Does the Company keep statistics on the amount of greenhouse gas emission, water consumption and total weight of waste in the past two years, and establish policies for greenhouse gas reduction, reduction of water consumption or management of other wastes?	V
V
V
V	(I) The Company has established environmental safety and health management measures in accordance with the environmental protection regulations stipulated by the Ministry of Recycling and Environment. The Taiwan factory continues to adopt the ISO 14001 environmental management system, ISO 46001 water efficiency management system, ISO 50001 energy management system verification, and ISO 14064-1 greenhouse gas emission inventory and ISO 14046:2014 water footprint verification. All management systems have been verified/certified by TUV Rheinland. The validity periods of the certificates are as follows:
ISO14001:2025.02.21~2028.01.28 +
ISO46001:2024.01.19~2026.12.07 +
ISO50001:2024.01.15~2027.01.14 +
ISO14046:2025.03.15~2027.03.14 +
(II) Our company has effectively improved energy efficiency and reduced the environmental impact of our operations through measures such as intelligent energy management, process energy conservation improvements, the introduction of renewable energy, the use of recycled materials, and the decarbonization of the supply chain. Moving forward, we will continue to adhere to international standards and sustainability commitments to	None.

Item	Implementation
	Yes	No	Summary description
			promote energy transition and the recycling of resources, in order to achieve our corporate sustainability goals.
1. Improved Energy Efficiency
Our company implements climate risk and energy management in accordance with the TCFD framework and continues to promote the ISO 50001 energy management system. Through intelligent energy monitoring and energy-saving improvement measures, we effectively improve energy efficiency. By 2025, energy intensity will decrease by 9% compared to 2024, and overall energy consumption will decrease by 23% compared to the baseline year.
2. Use of Recycled Materials and Low-Economic-Impact Materials
Our company actively promotes a circular economy strategy and collaborates with the supply chain to introduce low-carbon and recycled materials to reduce the environmental impact of our products throughout their lifecycle. For the main emission sources in Category 3, "Purchased Goods and Services" and "Product Use Phase," our company works with suppliers and customers to introduce low-carbon materials and recyclable packaging materials, and establish a green supply chain. Based on the results of ISO 14064 and GHG Protocol audits, our company continues to promote carbon reduction and material substitution at the product level to reduce overall carbon emissions across the supply chain.
(III) Based on the TCFD recommendations, the Company assessed the risks and opportunities posed by climate change. It mobilized managers from all departments and external professional consultants, and regularly held workshops on "Climate Risks and Opportunities." Each group calculated the probability and impact of each risk and opportunity, identifying the top five risks: changes in rainfall or weather patterns, increased frequency or severity of extreme weather events, shifts in customer and market demand, increased raw material costs, and international industry and voluntary regulations. Opportunities included resource substitution and diversification, the use of more efficient production methods, recycling, developing low-carbon products and services, and participation in renewable energy projects and energy upgrading. Following the report from the Chairman of the ESG Executive Committee, the Company resolved to focus on the impacts of shifts in customer and market demand, increased supply chain material costs, and international industry and voluntary regulations on significant risks in the fiscal year 2025; and on resource substitution and diversification, and the use of more efficient production methods on significant opportunities. These strategies have been incorporated into the Company's risk management procedures, and corresponding measures have been developed.
The Company's assessment of the risks and opportunities related to climate change and the response measures are listed in Table 2-2-3 of the annual report.
(IV) The results of the consolidated company's greenhouse gas inventory, the level of certainty, and the reduction policies are listed in Schedules II-2 and III of this annual report.
The Company has long been committed to water resource conservation and environmental protection. Regarding water conservation plans, we start with comprehensive implementation of daily water-saving practices to maximize the benefits of available water resources. Water consumption in 2025 and 2024 is 585,000 tons and 587,000 tons respectively. Reclaimed water will account for 18.1% and 16.7% of total water consumption in 2025 and 2024 respectively, used for toilet flushing, irrigation, and cooling towers. Wastewater from YunTech Plant 2, YunTech Plant 3, and Dapumei Plant 3 will be treated and used in the manufacturing process, with reclaimed water volumes reaching 106,000 tons and 98,000 tons in 2025 and 2024 respectively.

Item	Implementation	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Item	2025	2024
Hazardous waste (ton)	46	259
Non hazardous waste(ton)	9,452	10,164
Total	9,498	10,423
Intensity of waste (ton/ NT$ million operating revenue)	54%	57%
2025 implementation results and future goals: In response to climate change and to promote sustainable business operations, HIWIN Technology will continue to promote several energy management action plans and invest in the development of energy-saving products, as listed below:
Item	Outcomes in 2025	2026 targets
Climate strategies and energy management	OB-1 Scope 1+2 emissions reduction by 31% (Base year 2021) OB-2 Production interruptions due to climate disasters: 0 day OB-3 Accumulative total of renewable energy generation: 2,935KW	OB-1 Scope 1+2 emissions reduction by 23.1% (Base year 2021) OB-2 Production interruptions due to climate: 0 day OB-3 Accumulative total of renewable energy generation: 5,542KW
Water management	OB-1 Water reclaim rate: 18.1%	OB-1 Water reclaim rate: 19.3%
Waste management	OB-1 Waste recycling rate reaches up to 87%	OB-1 Waste recycling rate reaches up to 88%
IV. Social Issues (I) Has the Company established management policies and procedures in accordance with applicable laws and International Bill of Human Rights? (II) Does the Company formulate and implement reasonable employee welfare measures (including remuneration, leave and other benefits, etc.), and appropriately reflect the operating performance or results in the employee remuneration?	V

Item	Implementation
	Yes	No	Summary description
(III) Does the Company provide employees with a safe and healthy work environment and provide employees with safety and health education on a regular basis?(IV) Has the Company established an effective career development training program for its employees?(V) Has the Company complied with applicable laws and international standards on issues such as customer health and safety, customer privacy, marketing, and labeling of products and services, and established relevant policies and grievance procedures for the protection of consumers' or customers' rights and interests?(VI) Has the Company established a supplier management policy that requires suppliers to comply with relevant regulations on environmental protection, occupational safety and health, or labor human rights? Is there any implementation status thereof?	V		communities worldwide, and have published the human rights policy on the company website. https://esg.hiwin.tw/Policies_and_Certificates/humanpolicy.aspx (II) Human rights concerns and specific management plans: Specific management programs in 2025 are as follows :
	V		Human right Management policy	Specific Management program
	V		Diversity, Equity and Inclusion	When recruiting, hiring, and developing employees, we are committed to creating an equal, fair, and inclusive work environment where no discrimination is based on gender, race, age, marital status, family status, religion, political affiliation, nationality, appearance, physical features, disabilities, etc. We uphold principles of openness and fairness and maintain a zero-tolerance policy towards any form of discrimination.
	V		Same work, same pay	Regardless the gender, races, age, areas, the same compensation is paid if the same labor is provided.
	V		Working hours and wages	Our labor conditions comply with legal regulations, including working hours, overtime hours, salary payment, and overtime pay, and we provide additional benefits better than legal requirements.
	V		No forced labor	Any form of human trafficking is strictly prohibited and do not engage in forcing employees to work through violence, coercion, confinement, or any other illegal means.
	V		Prohibit child labor	To protect the physical and mental development of teenagers, the Company does not employ child workers under the age of 15, as required by the Labor Standards Act; any employment of workers under the age of 18, the Labor Standards Act shall be complied with.
	V		Humanely treatment	We pledge to treat employees humanely and do not tolerate any form of violence or harassment in the workplace, including sexual harassment, sexual abuse, physical punishment, psychological coercion, verbal abuse, or any form of intimidation. We are committed to creating a safe, equitable, and free- from-unlawful-infringement work environment.
	V		Health and Safety of working environment	We are committed to enhancing employees' knowledge, attitudes, and competencies in safety and health. In addition to complying with legal requirements and continuously optimizing management systems, we also promote a safety culture and implement diverse health care measures to establish a safe and healthy work environment, preventing occupational accidents and diseases.
	V		Good communication	We provide employees with various communication channels, including

Implementation
Yes	No	Summary description
		between labor and management	labor-managementmeetings, departmental meetings, monthly meetings, etc., to listen to their voices through multiple channels, safeguard their collective bargaining rights, and promote labor-management harmony.
		Responsibility of Value Chain	We expect our suppliers to uphold the same business mission as HIWIN and adhere to the Responsible Business Alliance (RBA) Code of Conduct. All suppliers must provide a safe and healthy work environment, prohibit child labor and forced labor, assist employees in maintaining a work-life balance, and comply with the above requirements in an effective manner.
		Complaint System and Remedial Measures	We have established a complaint channel for employees to report various issues to the company (including but not limited to sexual harassment, sexual abuse, physical punishment, psychological coercion, verbal abuse, or any form of intimidation). To maintain gender work equality and provide employees with a work and service environment free from sexual harassment, we have a dedicated complaint channel and a senior executive mailbox for sexual harassment prevention. If there is a violation of the above practices, an investigation will be conducted according to procedures. If human rights violations occur, the perpetrator will be punished, and the victim will receive physical and mental health counseling and follow-up. Necessary improvements will be made in policies and procedures.
		Due diligence and feedback mechanism	To implement human rights issue management, human rights due diligence is conducted to assess and identify human rights risks, their potential impact, and frequency of occurrence, and mitigation and remedial measures are implemented accordingly. Furthermore, by regularly reviewing the effectiveness of human rights governance efforts, human rights policies and management procedures are reviewed and revised to promote more comprehensive human rights protection.
		Mechanisms for managing human rights issues: 1. Human Rights Issues at Global Plants and Subsidiaries: Adhering to principles of equal employment, diverse hiring practices and anti-discrimination, prevention of sexual harassment and power bullying, and protection of personal privacy. 2. Human Rights Issues Related to Suppliers: For domestic supply chain suppliers and new suppliers, based on the concept of sustainable operation, suppliers are required to sign the "HIWIN Technologies Supplier Code of Conduct" to ensure a safe working environment in the supply chain, assume environmental responsibility, and protect the human rights and respect of their employees. This code is primarily based on the

Item	Implementation
	Yes	No	Summary description
			"Responsible Business Alliance (RBA) Code of Conduct" and references international standards such as ISO 45001 and ISO 14001. Through continuous management and guidance mechanisms, the company requires both new and existing suppliers to comply with the "HIWIN Technologies Supplier Code of Conduct" and integrates human rights risk management into the supplier audit and evaluation process. This includes management mechanisms for identification, assessment, cessation, prevention and mitigation, tracking, remediation, and disclosure to effectively monitor and reduce human rights risks related to the supply chain. Simultaneously, all new and existing suppliers are required to comply with the company's human rights and labor management requirements. Their performance in areas such as human rights, working conditions, work environment, safety and health, and business ethics will be reviewed through the "New Supplier Evaluation Survey," annual major supplier evaluations, and site visits. A total of 161 new qualified suppliers will be added by 2025. For those that do not meet the requirements, the company will initiate improvement plans, provide guidance, and, if necessary, terminate cooperation to reduce supply chain human rights risks and protect the rights of stakeholders.
3. Human Rights Issues Related to Customers: HIWIN Technologies understands the importance of customer privacy and is committed to ensuring respect for and protection of customer privacy and confidentiality. With explicit authorization or legal requirements, HIWIN Technologies will not disclose or use customer privacy and confidentiality for any purpose. According to TIPS, all customer-related information is classified as confidential. For example, customer drawings can only be obtained by authorized personnel; drawings marked with "confidential" require approval from a manager at the department head level or above before being taken out of the factory; printed drawings have a watermark indicating the printer and printing time, facilitating investigation in case of leakage and deterring colleagues from reprinting them.
4. HIWIN Technologies emphasizes the close connection between corporate operations and government regulations. Based on government environmental safety and health policies, labor laws, new laws concerning publicly traded companies, trade secret protection laws, and information security regulations, the company educates and promotes these regulations through internal and external courses and internal announcements. This strengthens employees' legal knowledge and practical application. To deepen human rights awareness, the company integrates human rights issues into appropriate training content and disseminates relevant information through training newsletters and new employee training. Statistics show that in 2025, the company conducted 1,490 hours of human rights courses, training a total of 12,503 people; and 1,462 hours of anti-corruption training, training a total of 11,779 people. This helps employees comply with laws and regulations while performing their duties and jointly build an equal, friendly, and mutually respectful working environment. HIWIN Technologies' Human Rights Due Diligence Process and Implementation:
1. Formulating the Company's Human Rights Policy
2. Assessing the impact of the company's operations and internal management on human rights, and establishing corresponding handling procedures:
(1) Formulating (Revising) the Human Rights Policy Committed to supporting and complying with international norms and labor laws, and formulated a human rights policy.
(2) Identifying Targets and Human Rights Issues

Item	Implementation
	Yes	No	Summary description
			Identified major human rights issues and affected targets within the organization and supply chain.
(3) Risk Assessment
Regularly assessed the level of risk exposure for employees, suppliers, and contractors.
(4) Establishing Risk Mitigation Measures
Setting targets for addressing human rights risk issues, as well as action plans and mitigation measures.
(5) Reviewing Implementation Effectiveness
Regularly reviewed the implementation and performance of the action plans.
(6) Disclosing Relevant Information
Conducting discussions and reporting on human rights management.
(7) Improvement and Follow-up
Implementing improvement and remedial measures in the event of human rights violations.
3. Regularly Review the Effectiveness of Human Rights Policies Referring to the 18 issues outlined in the UN Guiding Principles for Business and Human Rights, assessments confirmed that 3 issues had no potential for violation through empirical data. For the remaining 15 issues, an assessment questionnaire was developed, with 40 cross-departmental ESG members jointly evaluating significant human rights issues among HIWIN Taiwan employees.
HIWIN Technologies conducts a human rights due diligence survey every three years, based on fundamental human rights principles, relevant labor laws, and global human rights trends. In 2023, the company conducted the survey. The completed survey identified 5 medium- to high-risk human rights issues, and improvement and mitigation measures were implemented. The effectiveness of these measures is tracked and reviewed annually. For significant human rights issues identified as medium- to high-risk, improvement and mitigation measures were established and incorporated into the annual tracking mechanism for continuous review of improvement effectiveness. The survey results are also disclosed in the human rights management section of the annual ESG Sustainability Report to demonstrate the company's commitment to human rights respect and governance. Note: Medium- and high-risk human rights issues are, respectively, working hours and wages, data privacy protection and management, workplace health and safety, pollution and toxic or hazardous chemicals, and product use and services. Mitigation and remediation measures for 2026 are detailed in the ESG report.
4. Procedures for Handling Stakeholders Involved in Human Rights Violations
In the event of a human rights violation, HIWIN will, under the premise of upholding equality in the workplace, protecting personal dignity and privacy, and ensuring the physical and mental health of employees, immediately initiate the case handling process according to established mechanisms to investigate, address, and improve the situation to prevent similar incidents from recurring.
HIWIN Technologies has 4 feedback email addresses, allowing employee feedback to be directly relayed to the President, General Manager, Human Resources Department, and Audit office, ensuring a fast, fair, and confidential handling process. In 2025, a total of 31 complaints were received, all of which were processed in accordance with the above procedures; among them, there were 10 cases of unlawful infringement, of which 3 were found to be true after investigation (the nature of which was sexual harassment, unlawful verbal infringement, and unlawful verbal and psychological infringement, respectively).

Item	Implementation	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Number of Complaints	10	0
Number of Cases Successfully Investigated	3	0
For detailed information, please refer to our 2025 ESG Report. Employee remunerations
HIWIN offers our employees higher than industry-average remuneration. Our new employees all enjoy higher than local minimum wage remuneration. The salary includes basic salary, allowances, bonuses, and employee compensation, which is based on factors such as job duties, core functions, education and work experience, performance, market conditions, company profits, retained outstanding personnel, and shareholder interests. The salaries are paid without discrimination based on gender, age, race, religion, political stance, and marital status. They are regularly adjusted based on the overall business operation status and industrial standards.
Employee remuneration is based on the consolidated company's Articles of Incorporation, specifying that the no less than 1% of consolidated company's profit for the year. In order to achieve the net zero emission commitment by the end of 2050, each factory in Taiwan reviews, sets and tracks carbon intensity targets every year. ESG results and performance are also included in bonuses to demonstrate the accountability and motivation of all employees for carbon reduction.
Employee benefit measures:
HIWIN HIWIN Technologies cares for its employees with comprehensive welfare policies, allowing them to focus on work-life balance without worries. The company provides Employee Assistance Programs (EAPs) covering a variety of services including psychological counseling, health care, legal and tax advice, and trains EAP seed personnel to provide immediate support for employee needs. New employees enjoy 10 days of special leave in their first year, as well as parenting education leave exceeding legal limits, and receive fully subsidized group insurance to further enhance the protection of employees and their families.
Diverse welfare allowances include wedding gifts, funeral gifts, birthday gifts, holiday vouchers, travel and recreational subsidies, and free overtime meals and departmental meal subsidies to enhance employee cohesion. The company provides safe and comfortable dormitories for employees from other regions and regularly arranges health checkups and on-site visits by occupational physicians. Furthermore, HIWIN encourages employees to participate in clubs and public welfare activities, such as volunteer service, hiking, and annual family days, creating a warm and vibrant work environment.
Workplace diversity and equality:
HIWIN Technologies emphasizes fairness and objectivity, and provides equal treatment to all employees. It is committed to creating a diverse, equal, and inclusive (DEI) workplace environment. In 2025, a total of 88 female colleagues held supervisory positions, accounting for 14.3% of all supervisors. Among them, 15% of female supervisors at the management level or above were women, which is the same as the proportion of women in the total number of employees. The company also employs 40 people with disabilities and 33 indigenous employees, all of which comply with regulations and are continuously being improved.
Business performance reflected in employee salary:
The Company adheres to the principle of equal pay for equal work for their salary design. Except for employees on leave without pay, the Company evaluates employees with various

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			evaluations, such as new recruit evaluations, quarterly evaluations, year-end evaluations, and project evaluations to encourage and reward the contributions of outstanding employees. Rewards and bonuses are given based on employee performance, which is the key feature of the Company's reward system design. The lifetime royalty payment system is a great example. Where an employee's research and development of new technologies or patents yield profits for the Company, the Company will regularly pay bonuses to employees as licensing fees, allowing employees and the Company to share their mutual achievements throughout their lives. According to the Company's Articles of Incorporation, when the Company records a profit in the final accounts at the end of the fiscal year, it shall allocate no less than 1% of the profits as remuneration to the employees. The Board has approved the amendment to the Articles of Incorporation, to specify that no less than 0.3% shall be distributed to the non-executive employees as remuneration. A salary scale based on the relative contributions of employees and the level of their positions to provide reasonable salaries is established. Any changes to salaries and promotions are handled transparently and openly through institutionalized procedures. The Company regularly holds briefings on salary adjustments and bonus distribution so that all policies understand the related remuneration policies of the Company.

In addition, supervisors may give bonuses based on employees' involvement and cooperation in activities related to sustainable development and the results of performance evaluations. The Company has also formulated reward and punishment measures, proposal improvement mechanisms, workplace harassment/abuse prevention measures, and complaint/disciplinary procedures to reward achievements and deter illegal conducts, so that employees follow the code of conduct and reward and punishment regulations. In addition, HIWIN occasionally holds education and training programs related to sustainable development and uses the results as one of the criteria for performance evaluation and promotion assessment. To enhance the training efficacy, the Company has established a reward and punishment system to ensure the effectiveness of the education and promotion of the above programs.

The Company participates in market salary surveys every year and adjusts salaries based on market salary levels, economic trends, and individual performance to maintain overall salary competitiveness.

(III) To prevent and mitigate disasters, the Company utilizes appropriate management tools and available resources to integrate environmental, health and safety issues in the Company operations, propose effective countermeasures, and constantly promote the workplace safety culture with the goal of zero accidents. All HIWIN plants in Taiwan have passed the ISO 45001/CNS 45001 occupational safety and health management system verification, and the ISO 45001 certificates are valid from March 7, 2025, to March 6, 2028. In addition, the Company regularly conducts employee safety and hygiene training, fire drills, work environment hazard assessments, and provides adequate protection to ensure the health and safety of employees. The Company established a systematic management mechanism (ISO 45001 and CNS 45001) to thoroughly implement the environmental, safety, and health policies. Using the Plan-Do-Check-Act (PDCA) management strategy, the Company integrates environmental, safety, and health protection concepts into research and development, production, services, and raw material use. Through organizing meetings, education and training, and employee engagement, we actively promote each goal management programs for continual improvement, and fulfill the determination of protecting safety and health. The operation is explained as below: | |

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			Each plant has a dedicated occupational safety and health management department and personnel responsible for formulating management plans, promoting work environment and operational hazard identification, assessing and implementing safety and health management measures, performing automatic pre- operation checks of machinery and equipment, monitoring the work environment, and continuously improve safety and health facilities to create a safe, healthy, comfortable, and friendly working environment. All plants hold regular occupational safety and health committee meetings quarterly to review and improve safety and health issues and take preventive measures for different operation risks, such as machinery and equipment management, contractor management, chemical safety management, personal protective equipment requirements, and safety inspection management. In addition, the plant also holds emergency response drills regularly to minimize employee and company asset losses and social and environmental impacts resulting from disasters. The Company employs contracted physicians and dedicated nursing staff in compliance with the law to provide health services in plants, schedule and implement occupational health education, provide health promotion and guidance, prevent work-related injuries and illnesses, and provide health consultations, first aid, and emergency treatment. They also hold regular health promotion activities, such as healthy diet, stress relief, health preservation with Chinese medicine, and walking exercises to satisfy the health demands of employees. Additionally, the Company provides regular health examinations and special examinations for specific operations for different age groups to effectively assess and monitor employees' health. The Company inspects the operation environment every six months to examine its physical and chemical factors defined by regulations, such as lighting, carbon dioxide concentration, noise, and concentrations of regulated special chemicals. For any abnormality detected in the inspection, the occupational safety personnel of the plant will assess and fix the problem to ensure that the exposure risk of risk factors is reduced to an acceptable level to protect the health of the operating personnel. In addition to the working environment and occupational health, ergonomic improvements are also made, including: simple stackers, vacuum suction tools, hydraulic trolleys, hand trolleys, etc.; personnel are allocated and trained on correct handling posture Training and advocacy. The implementation in 2025 is as follows: A. The General Manager led senior management in promoting a safety culture campaign. Supervisors guided their colleagues to identify 568 hazards. A safety awareness assessment was also conducted, evaluating employees who had previously experienced occupational accidents and exhibited common unsafe behaviors in both the first and second halves of the year, ensuring an overall improvement in employee safety awareness (86.4 points in the second half, an increase of 4.2 points from 82.2 points in the first half). B. Statistics show that there were 36 occupational accidents in 2025, including 2 cases of disability and the rest of minor injuries. The main causes were equipment malfunctions and injuries from falling workpieces during suspended operations. This represents a 12.5% increase compared to 32 accidents in 2024. Root cause analysis and reviews have been completed for all incidents, and improvements have been implemented simultaneously across all plants. To continuously improve employee workplace safety and prevent similar incidents from recurring, HIWIN Technologies has compiled past occupational accident cases and lessons learned, planning and promoting related improvement activities as a basis for future prevention and risk reduction.

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			C. The frequency of disability injuries in 2025 is 0.22, and the severity rate is 7. Compared to 2024, the frequency of disability injuries increased by 0.01 (0.21), but the severity rate decreased by 70.8% (24). Our company has thoroughly reviewed and implemented improvement measures, which are being carried out simultaneously across all plants. We immediately revised automated inspection items, conducted machine safety checks, reiterated company safety regulations, and initiated a supervisory approach to monitor employee well-being and ensure their safety during work hours. Based on the actual results achieved from 2022 to 2025, the target for 2026 is a frequency of disability injuries of 0.36 and a severity rate of 11.D. An annual safety and health education and training plan is developed to improve employees' safety and health knowledge. In 2025, 13 types of internal safety-related training courses were offered, with 7,767 participants. 17 types of certification courses were offered, with 369 people passing the training and obtaining certifications.E. Employ dedicated occupational health nurses and contracted occupational medicine specialists to provide regular on-site health services, including health consultations, case management, emergency medical care, and support for any abnormal medical examination results. A total of 10,166 people will receive these services by 2025.F. Conduct on-the-job health check-up services for employees to facilitate early detection of health hazards and potential pathogens, and promote related activities such as chronic disease prevention and cancer screening. Based on the analysis and tracking management of employee health check results, individual health issues are identified and individualized guidance is provided through pre- and post-test questionnaires and data tracking monitoring. To enhance occupational safety and health for young and middle-aged workers and reduce occupational risks, health guidance and occupational health consultations are arranged for employees aged 45 and above with relevant health risk factors.Depending on the situation, job placement and participation in various health promotion activities are promoted. In 2025, a total of 514 employees were managed, achieving a 100% management rate. To encourage employees to exercise voluntarily and participate in health-related activities, a health passport point collection program is implemented, coupled with the WALKII APP health promotion software, providing employees with multiple certification methods. Mini-games within the software further increase participation rates; in 2025, a total of 2,743 people participated.G. To improve the health of the nation, enterprises are encouraged to promote the prevention and treatment of obesity and chronic diseases such as the "three highs" (high blood sugar, high cholesterol, and high blood pressure) in the workplace, providing health education and maintaining a safe lifestyle. (1) Management and control are implemented for employees who meet three or more of the following five criteria: obesity, high blood pressure, high fasting blood glucose, high fasting triglycerides, and low high-density lipoprotein cholesterol. (2) Management and control are implemented for employees with hypertension, diabetes, and those who are overworked. In 2025, a total of 314 employees with metabolic syndrome received health management assistance (128 of whom showed improvement, an improvement rate of 40.8%), and 70 employees received preventive management for cerebrovascular diseases (46 of whom showed improvement, an improvement rate of 65.7%).We help employees maintain a positive attitude and make them feel the company's care for their well-being.

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			H. There were 0 fire reports in 2025. We continue to implement fire safety management and prevention mechanisms to ensure a safe working environment and will continue to improve related management practices.(IV) HIWIN has established a comprehensive career development training system that covers topics such as the establishment of core competencies in the workplace, professional knowledge and skills in various fields and levels, leadership, and humanistic quality, in order to cultivate employees' complete responsibilities. Excellent human resources are the cornerstone of an enterprise's sustainable operations. In order to improve the ability and quality of employees and maintain long-term competitive advantages, the Company's Chairman, President, and first-level senior executives have all served as internal lecturers. In the past five years, the average annual expenditure of thousands of dollars Allocate at least NTS2,000 per employee each year for employee education and training to ensure that every employee has the opportunity to receive training.Each year, the Company conducts comprehensive functional training for managers and employees at all levels based on business operations, business directions, and forward-looking future development, including training for new recruits, promotion training, and managerial officers. Introduce training courses related to the development of corporate ethics and beliefs to cultivate the key capabilities of employees. In 2025, a total of 5,391 people completed the career training, for a total of 16,708.5 hours.The Company's training programs include: newcomer training, core functional training, professional functional training, management functional training, and external training.Employees receive appropriate training via the classroom, digital training, on-the-job training, external training, study club, oratory training, exhibition visits, degree programs, job rotation, and project assignments. The training content and methods are diverse and extensive.The Company provides tuition reimbursement programs for employees interested in continuing education to get degrees. The Company has also collaborated with schools to offer two-year college programs for employees who wish to continue their education.(V) The Company is committed to green manufacturing and sustainable development. Raw material materials and contents meet the health and safety requirements, such as EU RoHS, REACH and other regulations; the procurement, manufacturing and assembly, sales, transportation, use, and final disposal of raw materials , to formulate relevant development strategies and practices, and strive to achieve the goal of net zero emissions by 2050.The Stakeholders Section has been set up on the Company's website to provide feedback from stakeholders. It also provides diversified communication channels such as the official website, service hotline, business mailbox, and sales colleagues. We value customer feedback and suggestions. "Procedures" and "Customer Satisfaction Survey" to immediately respond to customer feedback, service, and customer complaints, and listen to and understand customer needs.In order to protect the information security of customers, suppliers, and employees, and to ensure the realization of the goal of uninterrupted operations, the Company has formulated and announced the "Information Security Objectives and Policies" as the basis for the planning and implementation of information security governance. The Company has passed ISO/IEC 27001, the international standard for information security management, to implement information security management, and formulate its privacy policy in accordance with the Personal Protection Act and information security policy.

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			To protect the information security of our customers, suppliers, and employees, and to ensure uninterrupted operational continuity, our company has formulated and published "Information Security Objectives and Policies" as the basis for information security governance planning and implementation. Our company implements information security management in accordance with the ISO/IEC 27001 international standard for information security management, and formulates a privacy policy in accordance with the Personal Data Protection Act and information security policies. HIWIN is committed to complying with relevant legal requirements regarding the protection of the personal privacy and data security of users (including but not limited to: customers, interviewees, investors, or stakeholders, etc.). Our privacy policy is publicly available on the company website. In 2025, we conducted information security education and training, reaching 8,582 people and totaling 3,026.2 hours, to strengthen awareness of data security and personal data protection. We also conducted social engineering exercises, sending 7 simulated phishing emails to a total of 2,202 people, improving employees' ability to identify information security risks and protect personal data. (VI) Currently, before engaging with suppliers, the company requires them to complete a "New Supplier Evaluation Survey Form." This form lists their social responsibility and past environmental impacts. In addition to requiring detailed responses from suppliers, it also serves as a basis for the company's evaluation of whether to continue working with that supplier. 1. Supply Chain Sustainability and Human Rights Management Commitment HIWIN Technologies values the potential human rights impact of its operations and supply chain system and is committed to adhering to international standards such as the Universal Declaration of Human Rights, the UN Guiding Principles for Business and Human Rights (UNGP), and the International Labour Organization (ILO) Core Labour Standards, continuously promoting human rights protection and sustainable governance. The company has established a human rights policy and incorporated it into its internal management system for implementation, serving as a crucial basis for operational management and decision-making. Furthermore, through continuous control and guidance mechanisms, the company requires both new and existing suppliers to comply with the "HIWIN Technologies Supplier Code of Conduct" and integrates human rights risk management into its supplier audit and evaluation processes. This encompasses management mechanisms for identification, assessment, cessation, prevention and mitigation, tracking, remediation, and disclosure, effectively monitoring and reducing human rights risks related to the supply chain. The company's related actions focus on the management and improvement of the following key human rights issues: • Prohibition of forced labor and child labor • Prohibition of all forms of discrimination and mistreatment • Prohibition of harassment and abuse • Ensuring workplace safety and health • Providing reasonable working hours and competitive wages. The company also requires all new and existing suppliers to comply with its human rights and labor management requirements, and reviews their performance in areas such as human rights, working conditions, work environment, safety and health, and business ethics through a "New Supplier Evaluation Survey," annual major supplier evaluations, and site visits. A total of 161 new qualified suppliers were identified for cooperation in 2025. For those that do not meet the requirements, the company will initiate improvement plans, provide guidance, and, if necessary, terminate

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			cooperation to reduce human rights risks in the supply chain and protect the rights of stakeholders.2. Environmental, Human Rights, and Responsibility Requirements in Product and Procurement Policies HIWIN Technologies adheres to the philosophy that "manufacturing is not an end in itself, but a means to meet human needs." In addition to pursuing high-tech, high-quality, and cost-effective products, the company requires its employees and suppliers to jointly fulfill their responsibilities in environmental protection, occupational safety and health, and human rights. A supplier code of conduct has been established, which includes:• Compliance with government labor laws and international standards• No use of conflict minerals and signing a conflict-free mineral declaration• Prohibition of the use of hazardous substances (such as EU RoHS)• Maintaining a safe working environment and employee welfare• Including labor rights and sustainability clauses in procurement contractsThe company conducts an annual supplier evaluation process initiated by the procurement unit. This evaluation comprehensively assesses supplier performance based on nine aspects: quality, price, after-sales service, delivery accuracy, geographical distance, cooperation, confidentiality management, inventory management, and environmental management. The average score for supplier performance evaluation in 2025 was 8.9, consistent with 2024. The company continued to mitigate supply chain risks through practices such as advance procurement, staggered delivery, and information sharing, and provided guidance to suppliers to improve their management capabilities in areas such as human rights, safety and health, environmental protection, business ethics, and management systems.HIWIN Technologies believes that enhancing suppliers' sustainability awareness and execution capabilities is crucial to ensuring the sustainable development of the supply chain.Therefore, the company continuously strengthens suppliers' implementation of issues related to sustainability, human rights management, and hazardous materials management through various mechanisms such as briefings and audit guidance. In 2025, the company conducted contract safety management and emergency response training, with 188 supplier partners participating; it also held an ESG partner consensus conference, inviting 96 suppliers to participate. Furthermore, the company periodically selects 22 key suppliers based on the nature of audits to conduct conflict mineral briefings to ensure the legality and compliance of raw material sources, further grasping and strengthening the overall ESG sustainability competitiveness of the supply chain.3. Sustainability Clauses and Supplier Risk Prevention When procuring major equipment, if a supplier's actions have a significant environmental impact, the company will reassess its ability to continue the transaction. All procurement contracts include sustainability clauses, requiring the following to ensure that environmental, social, and human rights risks in the supply chain are promptly controlled and addressed:• Both parties must adhere to ethical, legal, and social responsibilities.• Assess the social and environmental impact of business operations.• If either party violates sustainability or human rights policies, the other party may terminate or cancel the contract.HIWIN Technologies attaches great importance to the risk of major incidents involving suppliers and conducts a systematic

Item	Implementation			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
		Yes	No	Summary description
				incident risk assessment annually. If a supplier fails to meet the requirements for two consecutive years, the transaction will be suspended, and its eligibility for cooperation will be reassessed after rectification. Environmental and social impact assessments are conducted on key suppliers. Four environmental and three social suppliers had previously violated regulations, but all have completed rectification by 2025 and are currently free of such violations.
V. Does the company refer to international reporting standards or guidelines when preparing its sustainability report and other reports disclosing non-financial information? Does the company obtain third party assurance or certification for the reports above?		V		The Company compiled the 2025 sustainability report in accordance with the general guidelines, industry guidelines, and material topic guidelines issued by the Global Reporting Initiative (GRI) to disclose the economic, environmental, and demographic factors (including human rights) Material topics and impacts, disclosure items and their reporting requirements, and refer to the SAS Standards to disclose industry indicator information and SASB indicators corresponding to the report content.The 2025 Sustainability Report has been verified by TÜV Rheinland, and is in compliance with the latest GRI Standards and AA1000 TYPE I medium assurance level , and the certificate is expected to be obtained around June 2026. The sustainability reports of previous years are all disclosed on the Company's website.	None.
VI. If the Company has adopted its own sustainable development best practice principles based on the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, please describe any deviation from the principles in the Company's operations:The Company established its "Sustainable Development Practice Principles" based on the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". The actual operation and the established practices have no significant differences. In addition, with the efforts of all employees, the Company has been publicly recognized in terms of corporate governance, energy saving, environmental protection, dedication to social welfare, and other stakeholder rights.
VII. Other important information to facilitate better understanding of the company's promotion of sustainable development:1. The Chairman of the Risk Management Executive Committee is Liao Ke-huang, the Deputy General Manager. In response to risks such as industry changes and climate change, the committee conducts risk assessments by investigating the company's internal and external environment and past experience. This involves identifying potential risks and opportunities affecting the organization (assets, processes, personnel, supply chain, and finance), hypothesizing possible disaster types (including high temperatures, flooding, drought, strong winds, and lightning strikes), and then analyzing and prioritizing these risks before developing action plans and contingency plans. Based on this, significant risks and opportunities are screened, and various risk assessments and contingency plans are proposed according to policies and regulations, market conditions, and manufacturing aspects. The risks identified and key contingency plans for fiscal year 2025 are as follows, and were submitted to the Audit and Risk Management Committee and the Board of Directors on August 12, 2025, and February 26, 2026, respectively:
Risk category	Risk assessment subjects		Main response plans
Industry transformation risk	Economic fluctuations		Diversify market presence and diversify market reach. React quickly and develop effective countermeasures. Strengthen control over accounts receivable risk.
	Increased Market Competition		HIWIN Group's Electromechanical Integration & Smart Product Total Solution Competitor Product and Intelligence Gathering Automated Local Production and Assembly at Subsidiaries, Reducing Costs
	Industry Fluctuations Due to Economic Conditions		Expanding and Increasing the Number of Distributor Partners Accompanying Distributors on Visits to New Customer Bases Promoting the Semiconductor, Medical, Green Energy, and Robotics Industries
Climate change risk	Changes in rainfall or weather patterns (water shortage)		Additional tap water storage and water recycling facilities Continue to install smart water meter monitoring equipment
	The carbon fee will increase the Company's operating costs		Promoting energy-saving solutions Increased use of renewable energy within the plant Applying for the preferential rate of the Ministry of Environment's voluntary reduction plan

	Supply chain risk	Increased costs	Raw material order delivery delays Diversifying order placement to mitigate risk Developing local supply sources
		Supplier supply disruptions	Develop secondary suppliers Sign annual supply contracts Supplier visits and periodic audits
		Regulations	Establish supplier code of conduct Assess supplier suitability Require suppliers to set objectives
	Information security risks	Ransomware attacks	Configure protection rules for network firewalls and web firewalls Import endpoint protection systems User access restrictions
System vulnerability exploitation		Perform third party vulnerability scanning Perform third party penetration testing Collaborate with external cybersecurity intelligence to patch vulnerabilities
Blocking attacks on company's external services		Moving the external website to the IAP's hosting service Configuring the external network firewall
Credit and financial risk	Changes in foreign exchange rates	Forward foreign exchange management Daily exchange rate management Foreign currency time deposit management
	Risk of bad debt	The credit line is assessed by the responsible unit, and the establishment is approved with the appropriate authority. Review and follow up on overdue payment, and adopt legal proceedings if necessary Accounts receivable are subject to impairment losses in accordance with policy.
	Interest Rate Risk	Negotiating project interest rates with banks The parent company undertakes projects on behalf of the subsidiary to help obtain more favorable interest rates.
Manpower risk	Challenges to the recruitment of labor force	Promote various industry-academia collaboration projects Strengthen diverse talent recruitment channels Introduce new migrant workers
	Intense competition in the external labor market affects the retention of employees	Salary adjustments are made based on external salary standards and operational performance. Promotion mechanisms are submitted twice a year to promote outstanding talent. Internal transfer mechanisms and multi-skilled worker training are implemented.
Occupational safety risks	Risks of cutting, pinching, and falling objects tend to happen during works	Safety culture is included in promotion evaluation Safety knowledge and skills learning certification
	Risk of fire and explosion	Chemical inventory control Establishment of an online chemical management system
Intellectual property and litigation risk	Intellectual property rights are infringed by others	Infringement investigation, patent infringement identification, administrative investigation and punishment of counterfeit goods Trade secret registration system
	Our company infringes on others' intellectual property rights. Services include:	Intellectual property rights education and training, intellectual property rights search Regular monitoring (revocation) of other manufacturers' patents/trademarks Revocation of other manufacturers' patents and trademarks
	Innovations not protected	Intellectual property rights education and training Public examination of products and copyrights Regular trademark inventory

Based on the principle of materiality, the ESG Committee reports to the Board of Directors at least once a year on significant economic, social, and environmental issues discussed, as well as issues discussed among stakeholders. The 2025 report on stakeholder concerns, risks, and communication channels was submitted to the Board of Directors on May 8, 2026, and is listed below. For details, please refer to the Company's 2025 Sustainability Report.

Interested parties	The meanings to HIWIN	Focus issues	Actions
Employee	Employees are the key pillar of a company's sustainable operations	Business Performance; Talent Attraction and Retention; Workplace Safety and Health; Employee Diversity and Inclusion	• Company information is disseminated periodically via electronic bulletin boards. • Comprehensive salary and benefits package, retirement system, labor insurance, health insurance, and additional group insurance.
Manpower	Manpower is a key part of a company's sustainable operations	Business performance; Talent Attraction and Retention; Workplace Safety and Health; Employee Diversity and Inclusion	• Management information is disseminated to the company's public health system, including the public health system, the public health system's social and economic health system, and the public health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's health system's

Short term, mid-term goals for major ESG topics :

Material Issues	2026 Goals (Short-term)	2030 Goals (Mid-term)
Innovation Management	R&D expenditure as a percentage of operating revenue: 4.75%	R&D expenditure as a percentage of operating revenue: 6%
	Cumulative global patent portfolio: 3,600 patents	Cumulative global patent portfolio: 4,000 patents
	Per capita output value: NT$7.4 million	Per capita output value: NT$10 million
Green Product (Baseline year is 2021)	Reduction in overall energy intensity of all products: 25%	Reduction in overall energy intensity of all products: 54%
	Improvement in energy utilization rate of electromechanical products: 10%	Improvement in energy utilization rate of electromechanical products: 20%
	Increase in packaging material recycling rate: 7.5%	Increase in packaging material recycling rate: 20%

	Sustainable Supply Chain	On-site audits of sustainability management for key suppliers: 20 companies	Accumulated key suppliers of health check and refinement program: 20 companies
		Diversification of production bases/development of new suppliers: 12 initiatives	Diversification of production bases/development of new suppliers: 26 initiatives
		Green procurement expenditure as a percentage of total annual procurement: 7.5%	Green procurement expenditure as a percentage of total annual procurement: 10%
	Climate strategiet	Reduction of greenhouse gas emissions (Scopes 1 and 2 combined): 23.1%	Reduction of greenhouse gas emissions (Scopes 1 and 2 combined): 42%
Energy management	Cumulative capacity of renewable energy generation: 5,542KW	Cumulative capacity of renewable energy generation: 11,302KW
	Energy saving rate after implementing the energy-saving plan:2%	Energy saving rate after implementing the energy-saving plan:2%
Water Resource Management	Water recycling rate:19.3%	Water recycling rate:21%
Waste management	Waste resource recovery rate:>88%	Waste resource recovery rate:>90%

Financial impact of climate change

Financial implications and opportunities of climate change risks:	Item Evaluation	Scenario and financial impact	Current management cost	Future action plan
Transition risks	Market	Although HIWIN has already targeted its carbon footprint in advance, and plans to achieve the short-, medium-, and long-term goals of net zero by 2050, if it does not understand the customer's demand trend in carbon emissions, it may not be able to meet the customer's carbon footprint based on internal schedules alone. The need for neutralization (customer requirements may be advanced earlier), which will inevitably affect the ordering and revenue.	• ISO 14067 Product Carbon Footprint • Research and development of low-carbon products	• Establishment of carbon footprint inventory and low-carbon supply chain • Definition of low-carbon products and introduce low-carbon materials
	Policy and regulations	International enterprises require carbon inventory and product carbon footprint information, and they need to start investing in SBT, green power, and low-carbon equipment/materials/products to achieve carbon reduction planning goals; if no timely response is made, they may suffer the risk of losing orders (short-term, 1-3 years).	• Complete two-spec inventory of product carbon footprint • Research and develop alternative materials to reduce product carbon footprint	• Establish carbon footprint platform • Continuously R&D of low-carbon products • Continue to install solar power infrastructure • Cultivation of seed personnel for the carbon footprint of each product • Extend to other base products after completing the carbon footprints of the two main products • Introduce supply chain product carbon footprint training and guidance
Substantive risks	Long-term	Drought caused by extreme climates may result in operational losses. Based on the drought in central Taiwan in 2021, the Company estimates that: (1) During the peak of the drought, the water supply may be suspended three days per week. With an average water storage that can only last for two days, the Company must shut down for two days; (2) If the Yunlin plants experience a two-day water suspension, it also needs to shut down for two days (mid-term, 4-5 years).	• Purchase water containers and water trucks • Implementation of water recycling facilities (water-saving equipment) • Install smart water meters • ISO 46001 established in the headquarters	• Capacity scheduling • ISO 46001 established in the Yunke plant • Subscription and signing of a long-term contract for water trucks
	Urgency	Extreme weather causes flooding and disrupts transportation 1. Employees can not commute, resulting in production disruptions, financial losses, and decreased revenue 2. Raw material suppliers can not produce or deliver goods normally, affecting business operations 3. R&D projects are delayed and unable to meet customer demands, damaging the Company's reputation (Short term, 1 - 3 years)	• Capacity scheduling • Purchase sandbags • Develop new suppliers	• Implement work-from-home and remote operation systems • Establishment of emergency response measures for labor shortage • Evaluation for material reserve in advance • Assess the drought/flood risk at the manufacturing sites, and develop and implement risk mitigation measures • Install floodgates
Opportunity	Resilience	Prepare for future low-carbon material demands in advance to prevent potential supply chain disruption: (Scenario 1)	• Supplier capacity platform development • Develop new low-carbon	• Develop diverse suppliers • Continued development of new materials

| | | Estimate the possibility of raw material price inflation to reduce operational costs. (Scenario 2) Enhance supply chain resilience to avoid supply chain disruptions and increase local procurement percentage (Short-term, 1-3 years) | materials
• Develop alternative sources of supply (including local procurement)
• Safety stock (funds and warehousing costs) | • Research on low-carbon materials and manufacturing processes |
| --- | --- | --- | --- | --- |
| | Technology | In response to the trend of net-zero carbon emissions and to reduce product lifecycle carbon emissions, the Company introduces new technologies and automated carbon management platforms, such as the Internet of Things (IoT), big data analytics, and smart manufacturing, to improve productivity, reduce power consumption, minimize material usage and waste generation, and lower operational costs and improve productivity. (Short term, 1 - 3 years) | • Introduce smart manufacturing
• Invest in energy-saving and waste reduction | • Energy creation
• Continue smart manufacturing and introduce automated equipment to optimize production
• Establish a carbon footprint platform and low carbon supply chain
• Establish a energy visualization platform |

Workplace diversity and gender equality policies and implementation:

We are committed to providing employees with a safe working environment, implement employment diversity, fair remuneration and promotion opportunities, and ensure that employees do not or being subjected to discrimination, harassment, or unequal treatment. The policies are as follows:

Hiring for people with disabilities and disadvantaged persons:
In 2025, a total of 30 people with mild or moderate disabilities and 10 people with severe disabilities have met the criteria of the disability pension system. There are 32 indigenous people working for HIWIN. Diversified employment is a sustainable policy. In addition to complying with the government's laws and regulations regarding the hiring of persons with disabilities, the Bank respects the unique culture of ethnic minorities and grants special holidays to its indigenous staff every year to ensure the participation of indigenous peoples in important celebrations. the rights of the indigenous peoples, and there has never been any discrimination or violation against the indigenous peoples.
Respect and equality:
HIWIN fully implements the protection of the Constitution, and hires people on the basis of their ability, without discrimination, regardless of gender, age, disability, religion, race, nationality or political stance, and provides them with a fair and consistent salary structure and various benefits.
Women power in technology:
Due to the nature of its industry, HIWIN Technologies' workforce is predominantly male. However, in recent years, gender boundaries have become increasingly blurred. HIWIN Technologies actively recruits female talent in R&D and technical fields, and encourages employees to pursue cross-disciplinary learning. It provides mechanical engineering-related professional training courses to expand STEM expertise. Through internal transfer mechanisms, female employees are encouraged to take on STEM roles. From 2023 to 2025, female employees accounted for 8% of internal transfers to STEM positions. Furthermore, HIWIN Technologies is committed to creating a respectful and harmonious workplace by implementing various workplace-friendly measures, such as designated parking spaces for pregnant women, breastfeeding rooms, and sexual harassment prevention courses, inviting professional lawyers to provide in-depth analysis of legal points and share practical cases.

Nationality of Taiwan HIWIN employees:

Nationality	Administration	R&D	Manufacturing	Total	Share
Taiwan	495	531	2,734	3,760	83.99%
The Philippines	0	0	644	644	14.38%
Vietnam	0	1	55	56	1.25%
Indonesia	1	5	0	6	0.13%
Malaysia	0	2	2	4	0.09%
India	2	0	0	2	0.05%
Belarus	1	0	0	1	0.02%
Belize	0	1	0	1	0.02%
Korea	2	0	0	2	0.05%
Thailand	1	0	0	1	0.02%
Total	502	540	3,435	4,477	100.00%

Note: 1. Definition of administrative personnel: coordinators or engineers indirectly related to production activities, such as sales personnel, information personnel, etc.
2. Definition of manufacturing personnel: personnel directly related to production activities, such as production technicians, quality inspectors, etc.
3. Definition of R&D personnel: Personnel engaged in substantive improvement of technology, products and services, such as R&D engineers.

Investment status and specific benefits of investment in energy-saving or green energy-related environmental protection and sustainable machinery and equipment, and Taiwan's green energy industry

(1) HIWIN Technologies' 2025 investment in energy-saving and environmentally sustainable equipment mainly includes compressed air systems, air conditioning systems, and process equipment. Utilizing the ISO 50001 energy management system and scientific methods, the company will identify inefficient and high-energy-consuming equipment and replace or optimize its operation with high-efficiency, energy-saving devices. The total investment is NT$36.76 million, with specific benefits including annual electricity savings of 6,234,000 kWh and annual CO2e reduction of 2,951 metric tons. Details of

the investment plan are listed in the table below. For actual figures, please refer to HIWIN Technologies' 2025 Sustainability Report.

Energy-saving equipment type	Investment cost (NTD 10,000)	Electricity saved (kWh/year)	Carbon reduction (kg CO2e/year)	Cost savings (NTD/year)
Air compressor system	734	1,225,427	580,852	489
Air conditioning system	2,031	1,761,529	834,965	703
Process/Equipment Optimization	363	470,891	219,160	188
Lighting System	182	1,413,651	670,070	564
Heat Treatment and Annealing System	347	1,205,168	571,250	481
Surface Treatment/Sandblasting System	14	148,525	70,401	59
Operation and Scheduling Optimization	5	8,653	4,101	3
Total	3,676	6,233,844	2,950,800	2,487

(2) Investment in the green energy industry:

The roof of each factory building of HIWIN Technologies Corp. has been fully planned to be installed with solar energy. The solar energy installation has been completed in 2025 for self-consumption, and the plans and benefits of the capacity set in the coming years are as follows:

Item	Installation capacity (KW)	Input cost (NT$ 10 thousand)	Emission reduction (tons of CO2e)
In-house generation and consumption was completed in 2025	2,935	15,433	1,801,567
Completion in 2026 (expected)	2,607	10,593	1,544,451
Completion in 2027 (expected)	899	4,518	532,658
Completion in 2028 (expected)	1,548	7,477	917,190
Completion in 2029 (expected)	2,049	9,795	1,214,033
Completion in 2030 (expected)	1,265	6,097	749,513
Total	11,302	53,913	6,759,412

(3) Purchased green electricity:

In addition to building self-generated solar energy, HIWIN also seeks suitable and clean green power to achieve the net zero carbon reduction goal. The power conversion completed in 2025 and the green power purchase plan in the coming years are as follows:

Item	Purchased green electricity (kWh)	Cost of green power (NT$ 10 thousand)	Emission reduction (tons of CO2e)
Sales of power was completed in 2025	1,722,369	995	816,403
Completion in 2026 (expected)	1,750,000	1,012	829,500
Completion in 2027 (expected)	1,750,000	1,012	829,500
Completion in 2028 (expected)	1,750,000	1,012	829,500
Completion in 2029 (expected)	1,500,000	882	711,000
Total	8,472,369	4,913	4,015,903

(4) Energy management plan:

Our company has developed and implemented a comprehensive energy management plan. Through systematic energy usage assessment, we continuously promote energy reduction and efficiency improvement measures. The energy management plan covers the selection of high-energy-efficiency and energy-saving equipment, process energy-saving improvements, electricity hotspot analysis, renewable energy introduction, energy-saving performance evaluation, and raising employee energy efficiency awareness through education and training. These measures aim to reduce energy consumption in business operations and products, and improve overall energy efficiency.

HIWIN Technologies' operations headquarters, Plant 2, Precision Technology Plant 2, YunTech Plant, and Chiayi Dapumei Plant have implemented an ISO 50001 energy management system. Through system implementation and energy inventory diagnostics, we effectively manage energy usage, develop energy management policies, promote the company's energy-saving policies, and set reduction targets. By 2025, we expect to save NT$24.87 million in electricity costs.

HIWIN Technologies invests in social participation at its Yunlin County plant:

Our company has long been committed to corporate social responsibility, implementing sustainability principles in the daily operations of our factory and industrial park, community engagement, and philanthropic endeavors. Since establishing its factory in Yunlin in 2003, HIWIN has continuously invested in local resources, from self-managed greening and public facility adoption to employee volunteer services, emergency relief, and diverse charitable donations. With a core focus on the mutually beneficial relationship between the company, the industrial park, and the community, HIWIN has consistently contributed to local development. In 2025, HIWIN Technologies invested NT$3,744,000 in Yunlin County, where its Yunlin factory is located. This investment included: Yunlin County Xinyi Children's Home (5 sessions, 26 people, total service hours 78 hours); Yunlin County Yixin Children's Home (7 sessions, 47 people, total service hours 141 hours); providing 10,175.7 m² of green space within the Yunlin Technology factory area; maintaining 27,000 m² of green space; adopting 12 native Taiwanese camphor trees; and adopting 4,984 greening and beautification projects within the industrial park. m², 487 kg of secondhand clothing donations

(7,724 adult items and 436 children's items), etc. HIWIN hopes to work with the community to promote community development. Details of the investment are as follows:

	Items	Amounts(NTD thousands)
1	Sponsorship of Citong Elementary School - English Education Project	2,483
2	Emergency Fundraising	352
3	Sponsorship of Citong Elementary School - Library Collection and Reading Activities	274
4	Donation of a Service Vehicle for Underprivileged Families	200
5	Sponsorship of the 2025 National Games	120
6	Sponsorship of Citong Elementary School - Science Literacy Demonstration Project	100
7	Donation to Yunlin County Hearing and Speech Impairment Welfare Association	50
8	Sponsorship of Douliu Zhonghe Temple Archway Renovation	50
	Others	115
	Total	3,744

To support local education and enhance students' practical work experience, HIWIN actively collaborates with universities and colleges near its operations to provide students with practical work training. The status of HIWIN's industry-academia and workplace collaborations in 2025 is shown in the table below:

Category	School	Number of People	Period
Industry-University Collaboration	National Chien-Yi University of Science and Technology, National Huwei University of Science and Technology, United University, National Changhua University of Education, National Yunlin University of Science and Technology, etc.	94	2025.01.01-2025.12.31
Construction-Education Collaboration	Dajia Vocational High School, Wufeng Agricultural and Industrial Vocational High School, Dongshi Vocational High School	33	2025.01.01-2025.12.31

HIWIN has partnered with National Formosa University (NFU) to establish the "HIWIN NFU Smart Manufacturing R&D and Talent Development Center," marking a significant milestone in promoting smart manufacturing education. The center operates on a collaborative model involving industry, government, and academia. NFU and HIWIN have planned a 10-year cooperation blueprint, integrating government resources based on R&D and talent development needs. HIWIN will contribute NT$5 million annually to support the center's construction, equipment maintenance, technological research, and talent development, jointly creating a practical training ground for the smart manufacturing industry and promoting sustainable talent development. In the future, through research collaboration, technical exchanges, and joint courses, the center will ensure its faculty is more aligned with industry needs and will incorporate the latest technological trends into the teaching process, further enhancing students' competitiveness and industry integration.

HIWIN Technologies supports domestic cultural development

In 2025, the Company invested a total of NT$4,436,000 in domestic cultural development, benefiting more than 150,000 people. Through long-term project promotion, we have exerted a positive social impact, which is briefly described below:

(1) Sponsoring a cultural documentary

Our company sponsored the flagship documentary "#Shenmuzhilin: A Journey Along the Alishan Forest Railway," a collaboration between Taiwan Public Television and Japan Broadcasting Corporation (NHK). A special screening was held in Tokyo, Japan on September 21, 2025, showcasing the magnificent scenery and century-old human stories of the Alishan Forest Railway to Japanese audiences and the overseas Chinese community on the big screen, becoming an important milestone in Taiwan-Japan cultural exchange.

(2) Sponsoring the Taiwan Design Week

With "Human-Machine Collaboration" as the core theme, the event analyzed the movements of the human skeleton through visual recognition technology and converted them into continuous trajectories that can be executed by a robotic arm, presenting an innovative form that combines technology and art. This exhibition, centered on cross-domain integration, emphasizes that technology is not only a tool for industrial manufacturing but also a platform for cultural exchange and creative practice. It aims to enhance public understanding and acceptance of smart technology and promote imagination regarding the diverse applications of human-machine collaboration in future society. The exhibition runs from December 2024 to February 2025.

(3) Sponsorship of Kaohsiung Museum of Fine Arts Activities

HIWIN Technologies participated in the development of public art installations using precise and reliable robotic arm technology, showcasing the diverse applications of technology in cultural fields. The company sponsored two robotic arms that simulated welcoming gestures with high-precision movements, symbolizing the museum as an entrance connecting the city and art. The stable and flexible movements of the robotic arms allowed visitors to experience the interactive experience brought about by the fusion of technology and art in a more intuitive way. This participation not only breaks through the established image of the machinery industry but also reflects the role of enterprises in supporting cultural promotion and enhancing public technological literacy through technology, promoting diverse imaginations of sustainability, aesthetics, and innovation through cross-domain cooperation. The exhibition runs from June 2025 to the present.

(4) Sponsorship of Ars Electronica Festival Activities

Artists created works using HIWIN robotic arms. Artist Chang Yen-Tzu applied the technology to "In the Abyss, Once Again a Perceiver," representing Taiwan on the international stage at the 2025 Ars Electronica Festival in Linz. The work explored human-computer interaction and emotional issues in the technological age through the robotic arm. Combining a $720^{\circ}$ camera, intelligent inspection AI, and environmental data, the work showcased both automated and interactive behavior modes of the robotic arm, demonstrating HIWIN's achievements in supporting cultural creation and sustainable talent development through education and technology openness. The exhibition runs from September 3rd to 7th, 2025.

(5) Sponsorship of Other Activities
Hiwin sponsors events such as Taiwan Design Week - Human-Machine Dance + Praxis, the 2025 Taipei and New Taipei World Games - Torch Installation, the "Spiral Flower Blooming" exhibition, "Daylight Night," and the Taiwan Science Festival, contributing funds or sponsoring company products such as robotic arms. Please refer to the Company's 2025 ESG Report for details.

7. Net-Zero Commitment of HIWIN

(1) The Company actively aligns with international initiatives and officially passed the Science Based Target initiative (SBTi) review in fiscal 2024, confirming that the path to its carbon reduction targets is consistent with the Paris Agreement and committing to becoming a company that achieves SBTi Net Zero by 2050.
(2) The base year for Scope 1 and Scope 2 is 2021. Mid-term goal: $42\%$ reduction by 2030; long-term goal: $90\%$ reduction by 2050. Carbon emissions will be reduced by $29\%$ in 2025 compared to the baseline year of 2021, achieving the carbon reduction target.
(3) Scope 3 takes 2022 as the base year. The carbon emissions of purchased products and services, fuel and energy-related activities, sales of products, use of sold products, and upstream transportation and distribution are the main carbon emissions, which account for about $90\%$ of the overall Scope 3. Mid-term goal: $25\%$ reduction by 2030; long-term goal: $90\%$ reduction by 2050.
(4) The scope of investigation for Scope 1, Scope 2 and Scope 3 in 2025 includes the Company and its consolidated subsidiaries.

8. HIWIN Technologies demonstrates excellent ESG performance

S&P Global, an international sustainability rating agency, used the 2025 CSA score (DJBIC index) as the standard to announce the members of the 2026 Sustainability Yearbook. HIWIN Technologies received a score of 83 in the 2025 Dow Jones Best-in-Class Indices (DJBIC), ranking first in the world in the Machinery and Electrical Equipment industry category. Its outstanding ESG (Environmental, Social, and Governance) implementation results have been internationally recognized.

Renewable and Non-Renewable Energy Statistics: Our company continues to expand the use of renewable energy to reduce Category II emissions. The renewable electricity ratios for 2024 and 2025 are shown in the table below, covering all our plants in Taiwan.

Items	Unit	2024	2025
Non-renewable purchased electricity	MWh	236,572	225,042
	GJ	851,812	810,299
Self-generated and purchased renewable electricity (Renewable energy)	MWh	5,169	5,262
	GJ	18,613	18,949
Natural gas	MWh	21,293	20,976
	GJ	76,669	75,528
Diesel	MWh	3,191	2,873
	GJ	11,489	10,344
Volatile gasoline	MWh	791	833
	GJ	2,847	2,999
Acetylene	GJ	0	0
Total energy consumption	GJ	961,430	918,119
Total non-renewable energy consumption	MWh	261,847	249,724
	GJ	942,817	899,170
Percentage of renewable energy (%)		1.94	2.06

10.Supplier management policies, review mechanisms, and human rights due diligence:

HIWIN Technologies views its suppliers as long-term partners, pursuing sustainable development and growth together through clear supplier management policies and codes of conduct. The selection of new suppliers considers not only price, quality, and delivery time, but also environmental and safety management, labor rights, financial soundness, and cybersecurity.

The company conducts a "Supplier Self-Assessment Survey" annually, systematically evaluating suppliers' human rights and labor management aspects. In 2025, the survey covered $67.6\%$ of the total annual procurement amount, surveying 151 key suppliers. The results showed that none of the assessed suppliers were found to employ child labor or engage in forced labor, and their overall performance complied with HIWIN Technologies' human rights policy and related management requirements. Furthermore, for the 40 key suppliers audited in 2025, audits were conducted in five areas: labor, health and safety, environment, ethics, and management systems. The overall audit results identified 189 areas for improvement. Of these, 30 items (approximately $16\%$ ) involved labor-related issues, indicating that some suppliers still have room for improvement in the formulation and institutionalization of human rights-related policies. To address this, a tiered management system will be implemented based on supplier risk levels, combined with auditing, continuous monitoring, communication and guidance, and follow-up improvement measures to help suppliers strengthen their human rights and labor management capabilities. In response to HIWIN Technologies' implementation of the ISO/IEC 27001 Information Security Management System (ISMS), the company is simultaneously conducting internal and external outreach and incorporating the cybersecurity risk management mechanism into the new supplier contracts. This clearly defines the suppliers' information security responsibilities in the cooperative relationship, ensuring the effectiveness and appropriateness of their cybersecurity management measures and further reducing supply chain cybersecurity risks. The first phase has completed supplier impact analysis, identifying 31 existing suppliers that may affect information security, as well as newly added partners. All relevant parties have completed the signing of

the new supplier contracts by 2025. In the second phase, in addition to announcing cybersecurity management measures on the SCM platform to raise suppliers' cybersecurity awareness, a contract re-signing mechanism will be initiated for key suppliers to continuously strengthen cybersecurity control, thereby improving the integrity and consistency of overall supply chain information security management and achieving the company's sustainable governance goals.

Contractors' awareness of safety and health, human rights, and the establishment of a good working environment HIWIN Technologies prioritizes the safety, health, and respect for the work environment of its employees and contractors, and promotes various educational programs and systems, including the dissemination of contractor safety, health, and environmental management regulations, internal and external human rights awareness enhancement courses, and a human rights risk identification and complaint channel management mechanism.

Regarding contractor management, HIWIN Technologies utilizes a cross-departmental audit and performance evaluation mechanism to conduct systematic annual assessments of contractors in areas such as occupational safety, regulatory compliance, environmental protection, and social responsibility. This effectively reduces operational risks and maintains operational stability.

The assessment results are shown in the table below:

Level	Score	illustration
A	85–100	Priority order
B	60–84	Consider ordering
C	40–59	Within 7 days of receiving notification, submit corrective and preventative measures and have them inspected by the Safety and Health Team
D	Less than 39	Suspension of orders for 1 year or cancellation of supplier status

In 2025, performance evaluations were completed for 529 contractors, of which 353 (1,132 individuals) had signed the Contractor Management Manual (67% of the total). The evaluation results showed 526 suppliers were rated B and 3 were rated C. For contractors that failed to meet the standards, corrective and preventative measures were required, and improvements were tracked through continuous communication and coaching mechanisms to ensure continued compliance with HIWIN Technologies' contractor management requirements. The aim is to work with supply chain partners to reduce workplace risks and establish a sustainable, safe, and human rights-respecting workplace culture.

HIWIN has established a human rights protection policy:

The Company has formulated its human rights policy in accordance with fundamental human rights principles such as the Universal Declaration of Human Rights, the Global Covenant of the United Nations, the International Labour Organization's Declaration on Basic Principles and Rights of Work, the United Nations Guiding Principles for Business and Human Rights, and the OECD Guidelines on Due Diligence for Responsible Business Conduct. This policy is also based on the Responsible Business Alliance (RBA) Code of Conduct and the legal regulations of the locations of our global operations. This policy applies to current employees, suppliers, contractors, and partners (joint ventures, communities, and customers) at all our global operations. We adhere to relevant principles to protect human rights, as detailed below:

Human Rights Policy:

(1) Diversity, Inclusion, and Non-Discrimination

In the recruitment, appointment, and development of employees, we do not discriminate based on gender, race, age, marital status, family status, religion, political affiliation, nationality, appearance, facial features, or disability. We are committed to creating an equal and inclusive working environment, upholding the principles of openness and fairness, and adopting a zero-tolerance policy for any form of discrimination.

(2) Equal Pay for Equal Work: Compensation is not differentiated based on gender, race, age, or region. Those providing the same labor receive the same pay.

(3) Working Hours and Wages: Working conditions comply with local laws and regulations, including working hours, overtime hours, wage payment, overtime pay, paid annual special leave, and various leave and attendance management systems. Employees' working hours are ensured to not exceed the maximum daily working hours and 60 hours per week as stipulated by local laws (except in emergencies or special circumstances), and continuous work is not permitted for more than 7 days. Furthermore, other welfare measures superior to those stipulated by law are provided, and a living wage sufficient to meet basic local needs is paid on time.

(4) Opposition to Forced Labor: All forms of human trafficking are prohibited. Employees are not forced to work through violence, coercion, detention, or other illegal methods.

(5) Opposition to Child Labor: To protect the physical and mental development of young people, in accordance with the Labor Standards Act, individuals under the age of 15 are not employed. The employment of individuals under the age of 18 is handled in accordance with the Labor Standards Act.

(6) Discrimination and Harassment

We are committed to treating employees humanely and will not tolerate any form of violence or harassment in the workplace, including sexual harassment, sexual abuse, corporal punishment, psychological coercion, verbal abuse, or any form of threat or intimidation. We strive to create a safe, equal, and workplace-free environment.

(7) Workplace Health and Safety

We are committed to improving employees' knowledge, attitudes, and awareness of safety and health. In addition to implementing legal regulations and continuously optimizing our management system, we promote a safety culture and implement diversified health care to create a safe and healthy working environment and prevent occupational accidents and diseases.

(8) Effective Labor-Management Communication

We provide employees with diverse communication channels, such as labor-management meetings, departmental meetings, and monthly meetings, to listen to employees' voices, protect their right to collective bargaining, and promote harmonious labor relations.

(9) Protection of Employees' Work Rights

We comply with all local labor regulations to ensure that employees' work rights and working conditions are fully protected. This includes notifying the competent authority 60 days in advance of any mass layoffs and conducting labor-management negotiations within that timeframe. (All global factories and subsidiaries comply with local laws and regulations)

Table 2-2-3 Implementation of Climate-Related Information

Item	Implementation
1. Describe the monitoring and governance of climate-related risks and opportunities by the Board of Directors and the management.	The Board of Directors is the highest-level risk management and decision-making body for HIWIN Technologies. It focuses on the potential impact of climate change on the company's operations, overseeing, reviewing, and approving relevant policies and systems, and guiding and supervising the company's response to climate risks.Since the Financial Stability Board (FSB) issued the Climate-Related Financial Disclosures (TCFD) recommendations in 2017, HIWIN Technologies has explored and planned through internal and external expert review and advisory systems. In its 2021 annual report, it first disclosed and became a supporter of the TCFD. Furthermore, in 2022, it expanded its review and deliberation mechanisms, regularly reporting to the ESG Committee Chairman to review the risks and opportunities currently facing the company, as well as related responses and guidance measures. The company will establish a Sustainability and Cybersecurity Committee in 2025, composed of at least three directors, with General Manager Tsai Hui-ching appointed as the Chief Sustainability Officer. The ESG Executive Committee consists of senior executives from various departments, chaired by General Manager Tsai Hui-ching. The Executive Committee, referencing the framework of the Climate-Related Financial Disclosure Proposal (CTFD), conducts various risk and opportunity assessments. It identifies significant risks and opportunities based on the degree of risk exposure and performs climate change risk analysis separately according to policy and regulations, market, and manufacturing aspects to assess potential impacts. It integrates and manages all operational, financial, and potential harmful risks that may affect the company's operating performance using the most rigorous mechanism. The Executive Committee's Executive Secretary holds monthly meetings to review the progress of strategy and objective implementation, reporting the next month's objectives and current implementation status to the Chairman. Annually, the Executive Secretary will report on the strategic objectives and action plans for significant risks and opportunities related to TCFD to the Sustainability and Information Security Committee and the Board of Directors at least once a year, with reports to the Board in February, May, August, and November of 2025.
2. Describe how the identified climate risks and opportunities affect the business, strategy and finance of the enterprise (short-term, medium-term, and long term).	Based on the TCFD identification and assessment process, HIWIN Technologies uses RCP2.6 and IEA SDS to simulate, defining short-term as within 3 years, medium-term as 3 - 5 years, and long-term as more than 5 years, to assess the related climate risks and opportunities as the Company's potential operational and financial impacts in the short, medium and long-term, and plan various action plans to respond to climate-related risks and opportunities.
	Type of risk/opportunity	Short term (Less than 3 years)	Mid-term (3 - 5 years)	Long-term (over 5 years)
	Transition risks	● International industry regulations and voluntary regulations● Increasing demands of customers on the carbon footprint of products	● Changes in customer and market demands	● Failure to achieve ideal carbon reduction path implementation● Carbon reduction results do not meet stakeholder expectations
	Real risks	● Extreme weather caused floods and disrupted transportation and supply chain	● Operation interruption due to drought	● Rising average temperature

HIWIN has assessed the climate-related risks and opportunities that may cause significant financial impact, and the corresponding strategies are as follows:

Transformation risks/climate opportunities
R=risks / O=opportunities	Financial impact-/+	Action plan
R: International industry regulations and voluntary regulations	- Increased operating costs due to the payment of carbon fees	● Establish a product carbon footprint platform
R: Increasing demands of customers on the carbon footprint of products	- Renewable energy procurement, resulting in operating costs increase	● Continue to install solar power infrastructure
	- Loss of orders resulting in a decline in revenue	● Research and development of low-carbon products
R: Changes in customer and market demands	- Failure to respond to customer needs in a timely manner resulted in loss of orders or decline in revenue (R)	- Diagnosis of energy-saving solutions
O: Development and innovation of low-carbon products and services	+ Research and develop low-carbon products to increase revenue (O)	- Research and development of low-carbon products
O: Entering new markets or customers		- Conducting product carbon footprint inspection
R: Failure to achieve ideal carbon reduction path implementation	+ Gain customers' trust and increase revenue	● Enhance corporate sustainability image through disclosure and third-party verification
R: Carbon reduction results do not meet stakeholder expectations	+ Gaining stakeholder trust	● Strengthen corporate governance and establish the Company's emphasis on climate-related issues
		● Enhance corporate image by participating in sustainability appraisals
Physical risks/climate opportunities
---	---	---
R=risks / O=opportunities	Financial impact-/+	Action plan
R: Extreme weather causes flooding and disrupts transportationO: More efficient production	- Employees can not commute, resulting in production disruptions, financial losses, and decreased revenue- Decrease in revenue due to production interruption- Suppliers were unable to supply normally, resulting in a decline in revenue- Financial losses due to damage to machinery and equipment	● Capacity scheduling● Smart manufacturing for production lines● Construction of waterproof gates and purchase of sand bags● Change from sea freight to air freight for emergency materials stocking● Purchase property insurance
R: Extreme climates cause droughtsO: Resource substitutability and diversity	- Supply chain shutdown and no supply, resulting in production impact- Decrease in revenue due to decreased production output- The imbalance between supply and demand of raw materials leads to price rise and increase of cost (R)+Development of low-carbon materials to reduce costs and increase profits (O)	● Installation of smart water meters● ISO 46001 establishment in the headquarters● Subscription and contracting water trucks● Develop new suppliers● Development of alternative raw materials
R: Rising average temperatureO: Participation in renewable energy projects and efficiency improvement	- The increase in power consumption after the temperature rises results in an increase in operating expenses (R)+ Lower electricity cost due to improved performance (O)	● Smart manufacturing for production lines● Use of renewable energy● Procurement of energy-saving equipment● Energy management system was introduced to track energy usage

3. Describe the financial impact of extreme climate events and transformation actions.	Financial impacts of extreme climate events Based on the TCFD identification process, HIWIN Technologies focuses on transformation and physical risks, as well as short-term and long-term opportunities. The physical risks include changes in rainfall and weather patterns, as well as the frequency of extreme weather events, which will affect the continuity and sustainability of production. Extreme changes in precipitation and climate patterns mainly affected the production site in Taichung. Extreme weather caused floods, causing traffic disruptions, employees were unable to attend work, and production was affected, resulting in financial losses and reduced revenues. Raw material suppliers are unable to produce or ship normally, causing disruption to operations and shipments. Drought due to extreme weather may result in operating losses. Based on the scenario of drought in central Taiwan in 2021, it is estimated that the production shutdown will affect revenue for about two days. Under the leadership of the ESG Committee, the Company managers from all departments and external consultants to hold regular workshops on "climate risk and opportunity" identification. The RCP2.6 and IEA SDS scenarios were used to simulate ~3 years), medium-term (4-5 years), and long-term (more than 5 years), each team calculates the risk and opportunity likelihood and impact level, and identifies the top five risks and opportunities. Its likelihood score is 1 (almost unlikely) to 5 (almost certainty), and the impact severity is 1 (more than 0.1% of the monthly revenue is affected) to 5 (more than 10% of the monthly revenue is affected). Financial impact of transformation initiatives The transformation risk mainly covers changes in the cost of raw materials in the supply chain, changes in customer and market demands, such as the increase in the cost of raw materials forcing up the operating costs of production and products, and changes in demand, resulting in a decline in revenue or the risk of loss of profitability. These two risky are relatively influential to the Company's operation. Under the transformation risks, the transformation to a low-carbon economy may require a wide range of changes in policies and regulations, technology and market. Based on the nature, speed and focus of the above changes, within the time frame of the analysis, the carbon fee and greenhouse gas cap, renewable energy laws and regulations, and changes in consumer preferences may increase operating costs or reduce sales. Considering that HIWIN is selling some low-carbon products and continues to innovate and expand the diversity of related products, there will be no significant impact on market sales under each scenario, so the Company focuses on the analysis of operating costs. Under the scenario of low-carbon transformation, the financial impact of carbon pricing on the Bank will lead to an increase in the Company's own operating and supply chain costs. By introducing energy-saving and carbon-reducing projects, HIWIN seeks to minimize the impact of energy consumption, water consumption and waste on the climate in its operations and supply chain; improve energy efficiency, invest in green energy equipment; and invest in research and development of green products Innovation meets the needs of consumers in order to respond to these transformation risks. The financial impact of this project on HIWIN will result in an increase in the Company's capital investment and operating costs.
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system	1. Risk Management Governance Structure The Company has established a "Risk Management Policy" based on the ISO 31000 framework, serving as the highest guiding principle for the Company's risk management. The Board of Directors is the Company's ultimate decision-making and oversight body for risk management, responsible for reviewing and approving relevant policies and major risk control directions. From 2025 onwards, the Company will add risk management matters to the powers of the Audit Committee and rename it the "Audit and Risk Management Committee," becoming the Company's highest risk guidance unit, under which the "Risk Management Implementation Committee" is responsible for promoting and implementing cross-departmental risk management. 2. Integration of Climate Risk Identification and Assessment Process (1)Annual Climate Risk Identification Operations The Risk Management Committee conducts risk factor inventory and identification at least twice a year, covering all risks that may affect operations and sustainable development, including physical and transitional risks brought about by climate change. Following the TCFD framework, the Company convenes climate risk and opportunity identification workshops across departments, constructs a climate risk matrix based on eight risk categories, and quantitatively assesses the probability and impact of risks, updating the annual key risk identification matrix accordingly. (2)Climate Scenario Analysis and Financial Impact Assessment Our company conducts scenario simulations and financial impact analyses for physical risks related to climate change, such as flooding and drought. This includes estimating operational downtime, management costs, and related losses, serving as a basis for operational resilience planning and water resource management improvements. (3)Transition Risk Assessment and Low-Carbon Strategy Integration Our company continuously monitors low-carbon transition trends, including the impact of international carbon reduction regulations, product carbon footprint requirements, renewable energy policies, and low-carbon material standards on operations. The company has formally passed the Science-Based Carbon Reduction Targets Initiative (SBTi) review and is promoting carbon reduction actions with four core strategies: "improving energy efficiency, introducing renewable energy, innovating low-carbon products, and circular economy waste reduction." These strategies are simultaneously incorporated into risk management procedures. 3. Climate Risk Management and Decision-Making Implementation (1)Formulation and Integration of Risk Response Strategies Each department formulates climate risk response strategies based on risk identification results and incorporates them into annual operating plans, capital expenditures, supply chain management, and environmental safety and health management, thus integrating climate risk with daily operational management. (2)Indicator Monitoring and Target Tracking The Company's total carbon emissions (1+2) have decreased by
	3+2, and the impact of climate change on the public is increased by 10%. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public.
5. Identify and evaluate the impact of climate change on public health and the impact of climate change on public health	Financial impact of climate change The company has established a "Risk Management Policy" based on the ISO 31000 framework, serving as the highest guiding principle for the company's risk management. The Board of Directors is the Company's ultimate decision-making and oversight body for risk management, responsible for reviewing and approving relevant policies and major risk control directions. From 2025 onwards, the Company will add risk management matters to the powers of the Audit Committee and rename it the "Audit and Risk Management Committee," becoming the Company's highest risk guidance unit, under which the "Risk Management Implementation Committee" is responsible for promoting and implementing cross-departmental risk management. 2. Integration of Climate Risk Identification and Assessment Process (1)Annual Climate Risk Identification Operations The Risk Management Committee conducts risk factor inventory and identification at least twice a year, covering all risks that may affect operations and sustainable development, including physical and transitional risks brought about by climate change. Following the TCFD framework, the Company convenes climate risk and opportunity identification workshops across departments, constructs a climate risk matrix based on eight risk categories, and quantitatively assesses the probability and impact of risks, updating the annual key risk identification matrix accordingly. (2)Climate Scenario Analysis and Financial Impact Assessment Our company conducts scenario simulations and financial impact analyses for physical risks related to climate change, such as flooding and drought. This includes estimating operational downtime, management costs, and related losses, serving as a basis for operational resilience planning and water resource management improvements. (3)Transition Risk Assessment and Low-Carbon Strategy Integration Our company continuously monitors low-carbon transition trends, including the impact of international carbon reduction regulations, product carbon footprint requirements, renewable energy policies, and low-carbon material standards on operations. The company has formally passed the Science-Based Carbon Reduction Targets Initiative (SBTi) review and is promoting carbon reduction actions with four core strategies: "improving energy efficiency, introducing renewable energy, innovating low-carbon products, and circular economy waste reduction." These strategies are simultaneously incorporated into risk management procedures. 3. Climate Risk Management and Decision-Making Implementation (1)Formulation and Integration of Risk Response Strategies Each department formulates climate risk response strategies based on risk identification results and incorporates them into annual operating plans, capital expenditures, supply chain management, and environmental safety and health management, thus integrating climate risk with daily operational management. (2)Indicator Monitoring and Target Tracking The Company's total carbon emissions (1+2) have decreased by 1+2, and the impact of climate change on public health and the impact of climate change on public health. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is important to understand the impact of climate change on public health and the impact of climate change on the public. This is a key step in the management process of climate change, as it is --- \| \| 29% compared to 2021 (actual figures are subject to verification by TÜV Rheinland Taiwan), demonstrating the effectiveness of the Company's improved energy efficiency, renewable energy use, and energy-saving measures. Related KPIs are incorporated into the management targets of each unit to strengthen execution. 4. Board Oversight and Information Disclosure Mechanism The Risk Management Committee reports on the implementation of climate risk management to the Audit and Risk Management Committee and the Board of Directors at least once a year, including risk identification results, departmental response measures, and improvement progress. The Audit and Risk Management Committee is responsible for supervising implementation and reviewing effectiveness to ensure that risk control is implemented in business operations. Through a hierarchical governance structure of "Audit and Risk Management Committee – Risk Management Implementation Committee – Departments," the Company is able to effectively integrate climate risk management into its overall Enterprise Risk Management (ERM) system, strengthening the Company's operational resilience and sustainable competitiveness. The Company has incorporated major sustainability issues such as climate change risks, occupational safety and health, supply chain management and information security into its corporate risk management framework. The Audit and Risk Management Committee regularly reviews the risk identification, assessment and response to ensure that the Company can effectively respond to operational and sustainability-related risks. \| \| --- \| --- \| \| 5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described. \| Since 2022, HIWIN has been complying with the TCFD disclosure framework and has convened managerial departments and external consultants to identify "climate risks and opportunities". and conduct qualitative and quantitative analysis of climate model to assess the resilience of HSBC Bank in the face of climate change risks under different external conditions for the entire value chain. The Company adopts RCP 8.5 scenario analysis. For the parameters, assumptions and analysis factors used, please refer to 5.1 Climate Change Management and Strategy of the Sustainability Report; for the main financial impact, please refer to 5.1 Climate Risks and Opportunities Identification and Assessment of the Sustainability Report. \| \| 6. If there is a transition plan for managing climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks. \| 1. HIWIN established its mid- and long term goals through the ESG team discussion, and to align to the SBTi commitment. It is expected to reduce Scope 1 and Scope 3 emissions by 42% by 2030, reduce Scope 3 emissions by 25% by 2050, and aim to reduce Scope 1 and Scope 3 emissions by 25% by 2050. reduced by more than 90%. 2. In response to the climate-related risks and opportunities identified by the ESG Committee through the risk identification process, HIWIN has formulated action plans that include the use of renewable energy, power conservation measures, reuse of water resources, and emergency response to climate risks, in order to reduce carbon emissions year by year. 3. HIWIN Technologies consistently obtains the ISO 14064-1:2018 Third-Party Verification Declaration annually and, through responses to the CDP (Carbon Disclosure of Climate Change) questionnaire, discloses significant climate change risks and opportunities, monetization analysis, corporate carbon management performance, and supplier value chain negotiations, moving towards net-zero carbon emissions. In terms of future product technology development, it will continue to ensure the expected achievement of renewable energy infrastructure deployment, gradually shift product processes towards low-carbon technologies, and incorporate recyclable raw materials to ensure compliance with emission reduction targets in Categories 1, 2, and 3. \| \| 7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated \| Objective: To drive low-carbon investment, enhance energy efficiency, identify and seize low-carbon opportunities, influence strategy and/or financial planning, setting and/or achieving of climate-related policies and targets and strengthen internal carbon reduction capabilities, HIWIN Technologies has implemented an internal carbon pricing system since 2025. After assessment, the system adopts the most common shadow pricing method for internal carbon pricing to help the company understand the climate-related risks and impacts of technological changes or future regulatory shifts. Pricing Basis: Taking into account national carbon fees/emissions trading systems (ETS)/fees, and referencing the internal carbon prices adopted by leading domestic and international companies that have already implemented internal carbon pricing, research reports from domestic and international professional institutions, the market environment, and HIWIN Technologies' power generation and energy-saving costs, the ESG Executive Committee approved an internal carbon price of US$50 per metric tonne of CO2 in 2025 (increasing to US$80 per metric tonne of CO2 from 2026), initially piloted at the company's Taiwan plant. Applications: 1. Introducing the concept of carbon cost payback period: When evaluating the investment in energy-saving equipment, in addition to assessing the financial payback period, carbon reduction benefits will also be included as one of the evaluation indicators. 2. Incorporating the impact of carbon costs into the monthly management reports of each business unit, allowing business unit managers to evaluate the achievement of carbon cost reduction goals. Carbon reduction results will also be used as one of the performance evaluation items for each business unit and manager. Benefits: In 2025, HIWIN Technologies invested in energy-saving and environmentally sustainable equipment, saving a total of 6,234,000 kWh of electricity, equivalent to a carbon reduction of 2,951 metric tons. According to the internal carbon pricing mechanism, the potential external carbon cost reduction due to reduced carbon emissions is estimated at NT$4,574,000. \| \| 8. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the \| HIWIN Technologies has implemented a greenhouse gas inventory policy at all its production sites, defining organizational boundaries through operational control and completing third-party verification annually in accordance with the Ministry of Environmental Protection's announcements, guidelines, and national carbon emission standards. To achieve its sustainable environmental goals, the company has formulated four core strategies: "Improving Energy Efficiency, Innovating Low-Carbon Products, Reducing Waste through a \| --- 74 \| planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified. \| Circular Economy, and Introducing Renewable Energy." An "ESG Executive Committee," chaired by the Chief Sustainability Officer, has been established, holding monthly meetings to discuss environmental, social, and governance issues related to sustainable development. The committee manages major sustainable development themes effectively, and in 2025, reports on implementation results, benefits, and future goals were submitted to the Board of Directors in February, May, August, and November. In August 2025, the company formally established the "Sustainability and Cybersecurity Committee," a functional committee of the Board of Directors composed of three directors. This committee serves as the highest supervisory body for the company's sustainable development and cybersecurity-related work. It meets monthly to promote and monitor the progress of various projects, and the Chief Sustainability Officer reports to the Board of Directors on climate change-related issues quarterly. In November 2024, HIWIN Technologies adopted its Science-Based Carbon Reduction Targets (SBTi). Category 1 and Category 2 have a base year of 2021, with a medium-term target of a 42% absolute reduction by 2030 and a long-term target of a 90% absolute reduction by 2050. Category 3 uses 2022 as the base year, with its main carbon emissions coming from purchased products and services, fuel and energy-related activities, the use of sold products, and upstream transportation and distribution, accounting for approximately 90% of the overall Category 3. Its medium-term target is a 25% absolute reduction by 2030, and its long-term target is a 90% absolute reduction by 2050. To achieve its carbon reduction targets, HIWIN will increase its investment in the research and development of low-carbon products, implementing various carbon reduction tasks from raw material selection, transportation, and manufacturing processes to the usage stage. Since 2016, HIWIN Technologies has been gradually building solar renewable energy systems at its various production sites. In 2025, its actual self-generated solar photovoltaic power generation reached 3.54 million kWh. In 2024, the company implemented a green electricity procurement and transfer program, signing a 20-year, 1.2MW contract with a green electricity bank jointly established by the Chiayi County Government and Dehe Energy. In 2025, 1.47 million kWh of solar photovoltaic power was transferred. Additionally, the company won a 5-year pilot project for small-scale green electricity sales with Taiwan Power Company, actually transferring 250,000 kWh of solar photovoltaic power in 2025. In 2025, the company used a total of 5.26 million kWh of green electricity, and issued 5,901 renewable energy certificates. \| \| --- \| --- \| \| 9. Greenhouse gas inventory and assurance status and reduction targets, strategy, and concrete action plan (separately fill out in points 9-1 and 9-2 below) \| Please refer to the following description \| 9-1. Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years 9-1-1 Greenhouse Gas Inventory Information \| Describe the emission volume (metric tons CO2e), intensity (metric tons CO2e/NT$ million), and data coverage of greenhouse gases in the most recent 2 fiscal years. \| \| \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| HIWIN Technologies continues to conduct greenhouse gas inventory checks at all its production sites, in accordance with the relevant inventory guidelines and regulations announced by the Ministry of Environmental Protection. The inventory checks are conducted based on operational control to define organizational boundaries, using the Global Warming Potential (GWP) value published by IPCC AR6 (Intergovernmental Panel on Climate Change) in 2021 and national emission coefficients announced by the Ministry of Environmental Protection for calculation, and third-party verification is completed annually. Since 2024, consolidated subsidiaries have voluntarily been included in the inventory checks earlier to fully understand the Group's greenhouse gas emissions and verify the effectiveness of reduction actions. The greenhouse gas inventory data for the most recent two years are based on the operational control method, summarizing the greenhouse gas emissions of the Company and all subsidiaries within the scope of consolidated financial statements. The greenhouse gas disclosure data for 2025 is expected to be verified by June 2026, as explained below: \| \| \| \| \| \| \| \| \| 2024 \| \| 2025 \| \| \| \| \| Emissions (ton) \| Intensity (metric tons CO2e/million NTD) \| Emissions (ton) \| Intensity (metric tons CO2e/million NTD) \| \| Parent Company \| Scope 1 \| 24,940.4297 \| \| 7,834.2426 \| \| \| \| Scope 2 \| 117,401.4350 \| \| Regional: 107,486.5463 Market: 106,670.1434 \| \| \| \| Subtotal \| 142,341.865 \| \| Regional: 115,320.789 Market: 114,504.386 \| \| \| Consolidated financial statements of all subsidiaries \| Scope 1 \| 1,533.2093 \| \| 2,832.9336 \| \| \| \| Scope 2 \| 4,369.2858 \| \| Regional: 4,120.3264 Market: 4,116.1770 \| \| \| \| Subtotal \| 5,902.495 \| \| Regional: 6,953.260 Market: 6,949.111 \| \| \| Total \| \| 148,244.360 \| 6.08 \| Regional: 122,274.049 Market: 121,453.497 \| 5.01 \| --- Note 1: Direct emissions (Category 1): Greenhouse gas emissions directly generated by the company during its operations from stationary or mobile emission sources owned or controlled by the company. Indirect energy emissions (Category 2): Indirect greenhouse gas emissions generated at the energy production end due to the use of externally supplied electricity or energy. Note 2: Greenhouse Gas Inventory Standard: Greenhouse Gas Protocol (GHG Protocol) or ISO 14064-1 published by the International Organization for Standardization (ISO). Note 3: Greenhouse Gas Emission Intensity: Sum of Categories 1 and 2 / Group Revenue for the Year (in NTD millions) ## 9-1-2 Greenhouse Gas Assurance Information Describe the status of assurance for the most recent 2 fiscal years as of the printing date of the annual report, including the scope of assurance, assurance institutions, assurance standards, and assurance opinion. For the greenhouse gas emissions under Categories 1 and 2 of the Company and all subsidiaries within the scope of the consolidated financial statements in 2025 and 2024, the verification scope covered 100% of the disclosures made in section 9-1-1 above, and was conducted by a third-party verification conducted by TÜV Rheinland Technical Monitoring Consultants Co., Ltd. in Taiwan in accordance with the ISO 14064-3:2019 standard, with a level of reasonable assurance. For subsidiaries within the scope of the consolidated financial statements, third-party verification was conducted by qualified local verification agencies in accordance with the GHG protocol or the relevant ISO 14064-3 standard. The greenhouse gas verification results for the consolidated company in the most recent two years are listed below: \| Scope of execution assurance \| \| Emissions in 2024 (metric tons CO2e) \| Emissions in 2025 (metric tons CO2e) \| \| --- \| --- \| --- \| --- \| \| Parent Company \| Scope 1 \| 10,899.6222 \| Note \| \| \| Scope 2 \| Regional : 113,310.6201 Market : 112,134.6824 \| Note \| \| \| Subtotal \| Regional : 124,210.242 Market : 123,034.305 \| Note \| \| \| Accounting for the above 9-1-1 revealed investigation \| 100% \| 100% \| \| Consolidated financial statements of all subsidiaries \| Scope 1 \| 2,334.3532 \| Note \| \| \| Scope 2 \| Regional : 4,853.8633 Market : 4,824.9222 \| Note \| \| \| Subtotal \| Regional : 7,188.217 Market : 7,159.275 \| Note \| \| \| Accounting for the above 1-1-1 revealed investigation \| 100% \| 100% \| \| Total \| \| Regional : 131,398.459 Market : 130,193.580 \| Note \| Note : The verification of greenhouse gas emissions for the consolidated companies in 2025 is ongoing, and the relevant disclosed data is expected to be verified by the third-party TÜV Rheinland in June 2026. ## 9-2. Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan Specify the greenhouse gas reduction base year and its data, the reduction targets, strategy and concrete action plan, and the status of achievement of the reduction targets. The baseline year for carbon reduction targets Category 1 and Category 2 is set at 2021. The medium-term target is an absolute reduction of 42% by 2030; the long-term target is an absolute reduction of 90% by 2050. Category 3 uses 2022 as the base year, with carbon emissions primarily from purchased products and services, fuel and energy-related activities, the use of sold products, and upstream transportation and distribution, accounting for approximately 90% of the overall Category 3. The medium-term target is an absolute reduction of 25% by 2030; the long-term target is an absolute reduction of 90% by 2050. To achieve these carbon reduction targets, we will increase investment in the research and development of low-carbon products, implementing various carbon reduction tasks from raw material selection, transportation, and manufacturing processes to the usage stage. Greenhouse Gas Reduction Plan: By 2025, HIWIN Technologies will use energy performance as the main management indicator. The reduction plan includes implementing standby energy saving and improving process equipment energy efficiency at the process end, reducing compressed gas emissions, and improving cooling tower heat dissipation, resulting in a total reduction of 2,951 metric tons of CO2e. HIWIN Technologies will continue to promote its ISO 50001 energy management system and process carbon emission reduction measure. Based on its focus on energy management issues and its awareness of the severe challenges facing energy management in the future, HIWIN Technologies is proactively shifting from passive energy conservation to active energy creation. This involves improving its energy management system and intelligent monitoring to achieve optimal power generation efficiency. In 2025, HIWIN Technologies implemented 37 energy-saving projects, with 20 more planned for 2026. These projects include improving equipment efficiency and standby energy management, with an estimated carbon reduction of 1,884 metric tons of CO2e. The company also plans to build solar power plants, with an estimated electricity saving of 3,974 kilowatt-hours. HIWIN Technologies leverages its capabilities and expertise to create limitless possibilities for energy conservation across various sectors. Through the aforementioned carbon reduction measures, the consolidated company's greenhouse gas emissions in Category I and Category II for fiscal year 2025 amounted to 121,453.497 metric tons of CO2e (actual figures are subject to verification by TÜV Rheinland Taiwan), a 31% reduction compared to the baseline year (2021) of 176,346.961 metric tons of CO2e. The annual reduction results are in line with the established carbon reduction path. The action plan will continue to be reviewed and revised to ensure that the 2030 carbon reduction target is achieved as scheduled. --- (VI) Ethical Corporate Management – Implementation Status and Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons: \| Evaluation item \| Implementation status \| \| \| Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary description \| \| \| I. Establishment of ethical corporate management policies and programs (I) Does the company have an ethical corporate management policy approved by its Board of Directors, and bylaws and publicly available documents addressing its corporate conduct and ethics policy and measures, and commitment regarding implementation of such policy from the Board of Directors and the top management team? (II) Whether the company has established an assessment mechanism for the risk of unethical conduct; regularly analyzes and evaluates, within a business context, the business activities with a higher risk of unethical conduct; has formulated a program to prevent unethical conduct with a scope no less than the activities prescribed in Article 7, paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/TPE Listed Companies? (III) Does the company clearly set out the operating procedures, behavior guidelines, and punishment and appeal system for violations in the unethical conduct prevention program, implement it, and regularly review and revise the plan? \| V \| V \| (I) The Company established the "Ethical Corporate Management Best Practice Principles" on November 6, 2014, through the resolution of the Board of Directors. The code was amended on May 11, 2016, March 26, 2016, and May 6, 2019. In addition, the Board of Directors amended the "Code of Ethical Conduct" on November 6, 2015, which sets forth the policies and practices for the Company's integrity management and the commitment of the Board of Directors and management to actively enforce this policy. Board members and management must adhere to these principles of integrity in their business activities. Furthermore, the Company disclosed the "Ethical Corporate Management Best Practice Principles" and "Code of Ethical Conduct" on its website to enhance employees' awareness of the Company's integrity management principles. (II) The Company has also established the "Employee Code of Conduct" and the "Procedures for Ethical Management and Guidelines for Conduct." which specify various operating procedures. If employees violate the code of conduct or involve in fraudulent activities, the Company will take appropriate disciplinary measures based on the severity of the situation. Anyone who notices any violation of government laws or fraudulent activities can report it through email or in writing to independent directors, managers, internal auditors, or other appropriate personnel. Upon receipt of the report, the relevant personnel will report to the Chairman, and the internal auditors will occasionally review the compliance with the system mentioned above and include the occurrence of dishonest behavior as part of the audit to ensure adherence with the Principles. 1. The Company's conduct guidelines also stipulate the procedures and methods for reporting, including establishing an independent whistle-blowing mailbox for internal and external personnel, and a dedicated unit handles the process, record-keeping, and whether whistle-blowing rewards are given. All the information above has been disclosed on the Company's website. 2. The Company has established the "Employee Code of Conduct" following the "Ethical Corporate Management Best Practice Principles". The Company has also established preventive measures for high-risk dishonest behaviors in business activities under Article 7, Paragraph 2 of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies" or other business activities within the Company's scope of operation. The internal audit department also plays an essential role in ensuring compliance with the code of ethics and regulatory requirements. To ensure the accuracy, reliability, and timeliness of financial, management, and operational information and employees' compliance with relevant policies, guidelines, procedures, and regulations, the internal audit department conducts various inspections under the annual audit plan approved by the Board of Directors. The audit department will report the results and follow-up improvement plans to the Board of Directors to put the audit results into practice. (III)1. The "Procedures for Ethical Management and Guidelines for Conduct" established by HIWIN on November 10, 2015, explicitly mandates employees to always return or refuse any valuables if no supervisor approves, report to their immediate supervisors of such incidents, and inform the Chairman's Office or the responsible department of the Company. The Company should propose appropriate suggestions such as returning, accepting, confiscating, or donating to charity based on the nature and value of the interests involved. 2. To implement integrity management, the Human Resources Department is responsible for promoting and implementing integrity policies and preventive measures. The Audit Office, directly under the Board of Directors, conducts occasional inspections and follow-ups to improve the enforcement of the policies and reports and reviews abnormalities at any time if any occur. \| None. \| 76 --- \| Evaluation item \| Implementation status \| \| \| Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary description \| \| \| II. Ethical Management Practice \| \| \| \| None. \| \| (I) Does the company assess the ethics records of those it has business relationships with and include ethical conduct related clauses in the business contracts? \| V \| \| (I) HIWIN has established an evaluation mechanism for its suppliers and outsourcers. When entering into a contract with the supplier, the rights and obligations of both parties are specified in detail, and a confidentiality agreement and an undertaking of honesty and integrity are signed. The intellectual property team of the Company has also included the clauses of ethical conduct into the Company's various standard contracts, requiring the counterparties to duly observe the ethical conducts. If the unethical conduct is indeed involved, the Company may unconditionally terminate or cancel the contract at any time. \| \| \| (II) Has the company set up a dedicated unit to promote ethical corporate management under the board of directors, and does it regularly (at least once a year) report to the board of directors on its ethical corporate management policy and program to prevent unethical conduct and monitor their implementation? \| V \| \| (II) The Human Resources Department has been in charge of the promotion and execution of ethical corporate management, and the General Manager serves as the convener to ensure the implementation of ethical corporate management by the duties of each unit, and fully promote the ethical corporate management. All employees, managers and directors should abide by the "Ethical Corporate Management Best Practice Principles." Relevant members are also obliged to report to the Board of Directors at least once a year. The implementation of ethical management for 2025 has been reported to the Board of Directors on May 8, 2026. If an employee discovers any unethical conduct, he/she can also report it through the Company's public channels. If the case is serious, they are reported to the Board of Directors from time to time for supervision by the Board of Directors to determine whether they are implemented according to the Principles. The Company has implemented the ethical management policy and its implementation in 2025 is as follows: \| \| \| (III) Has the company established policies to prevent conflict of interests, provided appropriate communication and complaint channels, and properly implemented such policies? \| V \| \| 1. Education and training: Training courses on laws and regulations, auditing, risk management, and fraud prevention are provided. Corporate ethic forums and external training courses on corporate fraud risk discussion are also arranged for supervisors and colleagues. \| \| \| (IV) Does the company have effective accounting and internal control systems in place to enforce ethical corporate management? Does the internal audit unit follow the results of unethical conduct risk assessments and devise audit plans to audit compliance with the systems to prevent unethical conduct or hire outside accountants to perform the audits? \| V \| \| 2. Compliance advocacy: The main focus of 2025 is to promote and implement the Company's business philosophy of "professional standards, work enthusiasm, and professional ethics." \| \| \| (V) Does the company provide internal and external ethical corporate management training programs on a regular basis? \| V \| \| 3. Communication channels: Employees can report possible violations of ethical corporate management through the various channels to the Human Resources Department, various management levels, and independent directors. The Human Resources Department will be responsible for coordinating and handling matters. \| \| \| \| \| \| 4. Regular audits: We conduct annual self-assessments of corruption risks to ensure effective management and implementation. These assessments are independently audited by our auditing unit. As of 2025, our company has not experienced any major violations of integrity or corruption incidents. \| \| \| \| \| \| (III)Regarding conflicts of interest, the Company's internal employees may report incidents to their direct department supervisors and the audit department, or submit their opinions through the three whistle-blowing mailboxes set up by the Company. The Chairman and General Manager will handle the opinions raised in person. For any breach of ethical requirements, Company will investigate and confirm the situation in accordance with the Company's whistle-blowing procedures. For the reported party, the Company provides them with the opportunity to state their opinions or appeal. If the investigation results show any dishonesty, the Company will punish according to the regulations. \| \| \| \| \| \| (IV)HIWIN has established a policy to prevent conflicts of interest and to protect whistleblowers, enabling employees and other stakeholders (including but not limited to customers, suppliers, and partners) to report any improper or illegal conduct. In addition to reporting to their direct supervisors and the audit department, internal employees can also submit their opinions through the four designated complaint boxes provided by the Company. All feedback will be handled personally by the Chairman and General Manager. If any violations of conflict of interest or integrity regulations are found, relevant investigations and confirmations will be conducted in accordance with the Company's investigative procedures. Those reported will be given the opportunity to present their opinions or appeal. If the investigation confirms any dishonesty, the Company will take disciplinary action in accordance with regulations. \| \| \| \| \| \| (V) HIWIN educates and advocates to directors, managerial officers, and employees on relevant laws and regulations at least once a year. \| \| --- \| Evaluation item \| Implementation status \| \| \| \| \| \| Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary description \| \| \| \| \| \| \| \| \| Implementation: The Company has carried out relevant education and promotion for the current directors and managers; the Company has promoted the philosophy of anti-corruption and ethical corporate management through monthly meetings, new employees, supervisors, basic and promotion training, etc. Meanwhile, the Company also announces the "Ethical Corporate Management Best Practice Principles" and the "Ethical Management Operating Procedure and Guidelines for Conduct" to avoid conflicts of interest, accepting vendor gifts, insider trading, trade secrets, etc. The courses related to ethical management in 2025 include the laws and regulations on ethical management, scope of internal and material information, confidential work, legal knowledge, and business management meetings. The summary is as follows: \| \| \| \| \| \| \| \| \| Category \| Class \| Time (hours) \| Attendees \| \| \| \| \| \| Ethical Management Related Courses \| 359 \| 1,812 \| 15,823 \| \| \| III. Implementation of Complaint Procedures(I) Has the company established specific whistle-blowing and reward procedures, set up conveniently accessible whistle-blowing channels, and appointed appropriate personnel specifically responsible for handling complaints received from whistleblowers?(II) Has the company established standard operation procedures for investigating the complaints received, follow-up measures taken after investigation, and mechanisms ensuring such complaints are handled in a confidential manner?(III) Has the company adopted proper measures to protect whistleblowers from retaliation for filing complaints? \| V \| V \| (I) The "Employee's Code of Ethics" established by HIWIN Technologies has stated the whistle-blowing system, and also stipulated the employee reward and punishment method; to facilitate the whistle-blowers to report the violation of ethics matters, the Company has created an independent whistle-blowing mailbox on the Company's website for internal and external Mailboxes have been set up for the Chairman, General Manager, and the Human Resources Department to send whistleblowers directly to the report. If the Chairman and General Manager receive the reporting letter, they will instruct the Audit Office or the Human Resources Department to handle the case on a project-by-case basis. The Procedures for Ethical Management and Guidelines for Conduct specify the information to be provided by whistleblowers, the levels of acceptance for different whistleblowers, and the handling procedures of the dedicated unit.Whistle-blowing mail box: [email protected] - [email protected] - [email protected] - [email protected](II) HIWIN Technologies has clearly stipulated the investigation methods for whistleblowing in its "Employee Code of Ethics." Upon receiving a whistleblower report, all relevant personnel must immediately report it to the Chairman. In accordance with Article 7 of the regulations, the company will provide comprehensive protection measures for whistleblowers to ensure the quality of investigations and prevent whistleblowers from suffering unfair retaliation or treatment. The Chairman will instruct relevant departments to conduct private investigations and handle the matter, and further strengthen the confidentiality of the reported matters and the whistleblower. The company has established a whistleblower policy, which is disclosed on the company website at the following URL:https://esg.hiwin.tw/Policies_and_Certificates/whistleblowing_policy.aspx(III) In accordance with Article 3 of our Whistleblower Policy, all whistleblower reports will be kept strictly confidential. Whistleblowers may report anonymously without fear of retaliation. Privacy protection will be provided; the whistleblower's identity and the content of the report will be protected in accordance with relevant personal data protection laws and regulations, and will not be disclosed to unauthorized personnel to ensure the quality of investigations and prevent whistleblowers from suffering unfair retaliation or treatment.In 2025 and 2024, our company received 31 and 23 whistleblower reports respectively, all of which have been processed in accordance with our guidelines and whistleblower policy. Those found to have violated the regulations have been disciplined according to our internal disciplinary procedures. \| \| \| \| None. \| --- \| Evaluation item \| Implementation status \| \| \| Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons \| \| --- \| --- \| --- \| --- \| --- \| \| \| Yes \| No \| Summary description \| \| \| IV. Strengthening of information disclosure Does the company disclose the content of the Ethical Corporate Management Best Practice Principles and the effectiveness thereof on its website and the Market Observation Post System? \| V \| \| 1. The Company discloses information such as ethical corporate management philosophy, corporate mission, and brand meaning on its website and the Market Observation Post System. The Company also discloses the Company's "Ethical Corporate Management Best Practice Principles" on its website and Market Observation Post System. 2. In addition to setting up a corporate governance section on the Company's website to disclose the principles of ethical corporate management, the Bank also has a dedicated department responsible for the collection and release of various company information, and the relevance and reliability of the disclosure are also disclosed in the annual report and sustainability report. the Company's ethical corporate management. \| None. \| \| V. If the company has adopted its own ethical corporate management best practice principles based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe any deviations between the principles and their implementation: The Company has established the "Ethical Corporate Management Best Practice Principles" and the "Procedures for Ethical Management and Guidelines for Conduct" in accordance with the "Ethical Corporate Management Best Practice Principles for TWSE/TWSE Listed Companies", which are based on the examples released by Taiwan Stock Exchange. The relevant units are required to implement the above principles and guidelines into daily operations and management. Therefore, the actual operation is not materially different from the principles and guidelines. \| \| \| \| \| \| VI. Other important information to facilitate a better understanding of the status of operation of the company’s ethical corporate management policies 1. Regular education and training are held to promote the principles of integrity. In addition, the Company has formulated an Integrity and Integrity Transaction Commitment, requiring suppliers to sign back the commitment, promising to comply with the principles of integrity and integrity when dealing with the Company. 2. The Company abides by the Company Act, the Securities and Exchange Act, the regulations related to listing on the TWSE/TPEX, and related laws and regulations, as the basis for the implementation of ethical management, and prohibits the conduct of dishonest acts with the counterparties in the external business transactions. The Company has amended the "Ethical Corporate Management Best Practice Principles" and the "Ethical Management and Guidelines for Conduct" on May 6, 2019. \| \| \| \| \| (VII) Other Important information helpful for enhancing understanding of the corporate governance of the Company: None. --- (VIII)Implementation of the Internal Control System 1. Statement of Internal Control System HIWIN TECHNOLOGIES CORP. Statement of Internal Control System HIWIN TECHNOLOGIES CORP. Statement of Internal Control System Date: February 26, 2026 The company hereby declares the following statement about its internal control system of 2025 fiscal year based on its self-examination: I. The company is aware that it is the Board and managers' responsibility to establish, implement, and maintain an internal control system and the Company has set up such a system. Its purpose is to provide reasonable information on the effect and efficiency of operations (including profitability, performance, and protection of asset security), the reliability, timeliness, and transparency of reporting, and compliance with relevant laws and regulations. guarantee. II. Internal control systems have their inherent limitations. No matter how well they are designed, an effective internal control system can only reasonably ensure the achievement of the above three objectives. In addition, an internal control system's effectiveness may change as circumstances change. Nevertheless, self-supervision mechanisms have been built into the Company's internal control system. Once a deficiency is identified, the Company will immediately take corrective actions. III. The Company determines whether the design and implementation of its internal control system is effective by referring to the criteria stated in the "Regulations Governing the Establishment of Internal Control Systems by Public Companies" (hereinafter, the "Regulations") The Regulations provide measures for judging the effectiveness of the internal control system. Based on the management control process, the Regulations divided the internal control system into five components, namely: (1) Control Environment, (2) Risk Evaluation, (3) Control Operation, (4) Information and Communication, and (5) Monitoring. Each component consists of several items. Please refer to the Regulations for these items. Please refer to the "Regulations" for the said items. IV. The Company uses the criteria above to determine whether the design and implementation of its internal control system is effective. V. Based on a test using the above criteria, the Company believes that, as of December 31, 2025, its internal control system (including supervision and management of subsidiaries) is effective and, therefore, can reasonably ensure the achievement of the above objectives, which include awareness of the degree to which operating results and goals are achieved, reliability of financial reporting, and compliance with the law. VI. This statement shall become a principal part of the Company's Annual Report and prospectus and be available to the public. If the above content is untruthful or certain critical information is withheld, the Company shall be held liable pursuant to Articles 20, 32, 171, and 174 of the Securities and Exchange Act. VII. This statement was approved by the Board of Directors of the Company on February 26, 2026. Of the 10 directors present, 0 dissented, and the remainder agreed to the contents of this statement and hereby declare it. HIWIN TECHNOLOGIES CORP. Chairman: Eddie Chuo Signature General Manager: Hui-Ching Tsai Signature 2. If the company has commissioned external auditors to review the company's internal control system, the external auditor's report should be disclosed: None. 80 --- (IX) Major resolutions of Shareholder and Board Meetings in the most recent fiscal year and as of the publication date of this Annual Report: 1. Important resolutions of the shareholders’ meeting as below: \| Date of shareholders’ meeting \| Important Resolutions of the Board Meeting \| Implementation Details \| \| --- \| --- \| --- \| \| 2025.05.28 \| Approved to ratify the 2024 Business Report and Financial Statements \| Relevant forms have been submitted for inspection and announced in accordance with the Company Act and other relevant laws and regulations. \| \| \| Approved to ratify the 2024 earning distribution \| According to the resolution, the distribution was completed, and a total of NTS2.4 per share was distributed on August 15, 2025. \| \| \| Amendments to the Articles of Association were passed \| Effective upon approval by the shareholders' meeting. \| \| \| Election of the 13th Board of Directors was passed / \| They shall assume office immediately upon approval by the shareholders' meeting. \| \| \| The non-compete restrictions on the 13th Board of Directors and their representatives were lifted \| Effective upon approval by the shareholders' meeting. \| 2. Resolutions from the board meeting: \| Date of board meeting \| Important Resolutions of the Board Meeting \| \| --- \| --- \| \| 2025.02.26 \| Approval of the Employee and Director Compensation Allocations for 2024; Approval of 2024 Internal Control System Statement; Approval of 2024 Business Report; Approval of 2024 Financial Statements; Approval of 2024 Profit Distribution; Approval of Amendments to the Articles of Association; Approval of Time, Location, Agenda, and Related Matters for the 2025 Annual General Meeting of Shareholders; Election of the 13th Board of Directors; Acceptance of Shareholder Proposals and Nom Approval of inations for Directors and Independent Directors; Approval of 2025 Operating Plan; Capital Increase/Decrease for the Japanese Subsidiary; Approval of Endorsement Guarantee for the Subsidiary, Matrix Precision; Approval of Endorsement Guarantee for the Italian Subsidiary; Approval of Transfer of Overdue Accounts from the Japanese Subsidiary to Funds Loans; Approval of Donation to the HIWIN Technology Education Foundation. \| \| 2025.04.09 \| Approval of the nomination list of candidates for the 13th Board of Directors and the qualification review of independent directors; Approval of the lifting of the non-compete restrictions on the 13th Board of Directors and their representatives; Approval of the transfer of overdue accounts receivable from the Japanese subsidiary to funds loans. \| \| 2025.05.09 \| Approval of the consolidated financial statements for the first quarter of 2025; Approval of the endorsement guarantee for the subsidiary, Matrix Precision; Approval of the endorsement guarantee for the Singapore subsidiary; Approval of the endorsement guarantee for the Japanese subsidiary; Approval of the transfer of overdue accounts receivable from the Japanese subsidiary to funds; Approval of the preparation of the 2024 ESG report. \| \| 2025.05.28 \| Approval of the election of the 13th Chairman; Approval of the appointment of members to the 6th Salary and Compensation Committee; Approval of the appointment of members to the 3rd Nomination Committee; Approval of the adjustment of senior management positions; Approval of the adjustment of General Manager Tsai Hui-ching to the position of Co-CEO. \| \| 2025.08.12 \| Approval of the consolidated financial statements for the second quarter of 2025; Approval of the cash capital increase and endorsement guarantee for the Korean subsidiary; Approval of the endorsement guarantee for the subsidiary, Matrix Precision; Approval of the establishment of the "Sustainability and Cybersecurity Committee" and the formulation of its organizational procedures, and the appointment of a cybersecurity chief; Approval of renaming the "Audit Committee" to the "Audit and Risk Management Committee"; Approval of revising the "Audit Committee Organizational Procedures" and renaming it the "Audit and Risk Management Committee Organizational Procedures"; Approval of revising the "Risk Management Policy and Procedures"; Approval of merging the "Remuneration and Compensation Committee" and the "Nomination Committee" and renaming it the "Remuneration and Nomination Committee"; Approval of revising the "Remuneration and Compensation Committee Organizational Procedures" and renaming it the "Remuneration and Nomination Committee Organizational Procedures"; \| --- 82 \| Date of board meeting \| Important Resolutions of the Board Meeting \| \| --- \| --- \| \| \| Approval of revising the "Director Performance Appraisal and Remuneration System"; Approval of revising the "Internal Control System and Internal Audit Implementation Rules". \| \| 2025.11.11 \| Approval of Preparation of consolidated financial statements for the third quarter of 2025; Approval of Cash capital increase for subsidiary Matrix Precision; Approval of Adjustment of the lease agreement for Yunke plant from HIWIN Microsystems Co., Ltd.; Approval of Renewal of the lease agreement for plant from HIWIN Microsystems Co., Ltd.; Approval of Endorsement guarantee for Italian subsidiary; Approval of Endorsement guarantee for Korean subsidiary; Approval of Endorsement guarantee for subsidiary Matrix; Approval of 2026 internal audit plan; Proposed revisions to relevant rules and regulations in conjunction with the renaming of the company's audit committee; Approval of Proposed revisions to relevant rules and regulations in conjunction with the renaming of the company's compensation committee; Approval of Revision of the company's "Corporate Governance Practice Code"; Approval of Revision of the company's "Accounting System". \| \| 2026.02.26 \| Approval of the 2025 Employee Compensation and Director Compensation Approval of the 2025 Internal Control System Statement Approval of the 2025 Business Report Approval of the 2025 Financial Statements Approval of the 2025 Profit Distribution Approval of the Amendments to the Articles of Association Approval of the 2026 Annual General Meeting of Shareholders Time, Place, Agenda Items, and Related Matters Approval of the Acceptance of Shareholder Proposals Approval of the 2026 Operating Plan Approval of the Internal Restructuring of Deloitte Touche Tohmatsu Certified Public Accountants The following approvals were granted: Approval of changes to the certified public accountant; Approval of the assessment of the independence and competence of the certified public accountant for 2026 and the appointment of their remuneration; Approval of the endorsement guarantee for the subsidiary, Matrix Precision; Approval of the endorsement guarantee for the Italian subsidiary; Approval of amendments to the "Internal Control System and Internal Audit Implementation Rules - Salary Calculation, Recording, and Payment Procedures"; Approval of amendments to the "Employee Salary and Benefits Procedures"; Approval of the preparation of the 2025 sustainability report framework; Approval of the donation to the "HIWIN Technology Education Foundation". \| \| 2026.05.08 \| Approval of the consolidated financial statements for the first quarter of 2026; Approval of the capital increase/decrease for the Japanese subsidiary; Approval of the endorsement guarantee for the subsidiary, Matrix Precision; Approval of the endorsement guarantee for the Singapore subsidiary. \| (X) In the most recent fiscal year and as of the printing date of this Annual Report, directors have different opinions on important resolutions passed by the board of directors and have records or written statements: None. ## IV. Information on the professional fees of the attesting CPAs (I) The amounts of the audit fees and non-audit fees paid to the attesting certified public accountants and to the accounting firm to which they belong and to any affiliated enterprises as well as the details of non-audit services Amount Unit : NT$ thousand \| Name of Accounting Firm \| Names of CPAs \| Period covered by the CPA audit \| Audit fees \| Non-audit fees \| Total \| Remark \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| Deloitte Taiwan \| Wu, Li-Dong \| 2025.1.1~2025.12.31 \| 5,790 \| 1,290 \| 7,080 \| Non-audit public expenses include corporate income tax audits, preparation of transfer pricing reports, and advance payments. \| \| \| Karen Yen \| \| \| \| \| \| (II) When the company changes its accounting firm and the audit fees paid for the fiscal year in which such change took place are lower than those for the previous fiscal year, the amounts of the audit fees before and after the change and the reasons shall be disclosed: None (III) The audit fees paid for the current fiscal year are lower than those for the previous fiscal year by 10 percent or more: None --- # V. Information on replacement of certified public accountant: (I) Information regarding the former CPAs \| Date of replacement \| 2026.02.26 \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| \| Reason for replacement and explanation \| In accordance with the internal rotation mechanism of Deloitte Touche Tohmatsu, starting from the first quarter of 2026, the financial statement certification service will be changed from accountants Wu Li-dong and Karen Yan of Deloitte Touche Tohmatsu to accountants Jiang Shu-jing and Yan Xiao-fang. \| \| \| \| \| Was the termination of audit services initiated by the Company or the CPA? \| Parties Circumstances \| \| CPAs \| The Company \| \| \| Terminated the engagement \| \| Not Applicable \| \| \| \| No longer accepted (discontinued) the engagement \| \| \| \| \| If the CPAs issued an audit report expressing any opinion other than an unqualified opinion during the 2 most recent years, specify the opinion and the reasons \| \| \| \| \| \| Disagreement with the Company? \| Yes \| \| Accounting principles or practices \| \| \| \| \| \| Disclosure of financial reports \| \| \| \| \| \| Audit scope or steps \| \| \| \| \| \| Other \| \| \| \| None \| V \| \| \| \| \| Description \| \| \| \| \| Other disclosures (Any matters required to be disclosed under sub-items d to g of Article 10.6.A of Regulations Governing the Preparation of Financial Reports by Securities Issuers) \| None \| \| \| \| (II) Information Regarding the Successor CPAs \| Name of accounting firm \| Deloitte Taiwan \| \| --- \| --- \| \| Names of CPAs \| Vita Chiang and Karen Yen \| \| Date of engagement \| 2026.02.26 \| \| Subjects discussed and results of any consultation with the CPAs prior to the engagement, regarding the accounting treatment of or application of accounting principles to any specified transaction, or the type of audit opinion that might be issued on the company's financial report \| Not Applicable \| \| Successor CPAs’ written opinion regarding the matters of disagreement between the Company and the former CPAs \| Not Applicable \| (III) The reply letter from the former CPA regarding the Company's disclosures regarding the matters under Article 10.6.A and 10.6.B(c) of the Regulations: Not Applicable. # VI. Where the company's chairperson, general manager, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed: None. --- VII. Any transfer of equity interests and/or pledge of or change in equity interests (during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report) by a director, managerial officer, or shareholder with a stake of more than 10 percent during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report (I) Changes of shares held by directors, managers and major shareholders Unit: Shares \| Title \| Name \| 2025 \| \| 2026 and up to March 31 \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| \| Increase (Decrease) in Shares Held \| Increase (Decrease) in Shares Pledged \| Increase (Decrease) in Shares Held \| Increase (Decrease) in Shares Pledged \| \| Chairman \| Eddie W.H. Chuo \| - \| - \| - \| - \| \| Director \| Eric Y.T. Chuo \| (1,500,000) \| - \| - \| - \| \| Director \| Olivia S.Y. Chuo \| - \| - \| - \| - \| \| Director \| Chin-Tsai Chen \| - \| (1,900,000) \| - \| (1,123,000) \| \| Director \| Sanko Investments Ltd. \| - \| 100,000 \| 50,000 \| - \| \| \| Representative: Ching-Yi Huang \| - \| - \| - \| - \| \| Director(Note 1) \| Chang-Lun Lee \| - \| - \| - \| - \| \| Director(Note 2) \| Shun-Chin Lee \| (334,000) \| (3,000,000) \| - \| - \| \| Independent director \| Cheng-Ho Chiang \| - \| - \| - \| - \| \| Independent director \| Zhen-Yuan Chen \| - \| - \| - \| - \| \| Independent director \| Hui-Xiu Lee \| - \| - \| - \| - \| \| General Manager \| Enid H.C. Tsai \| (16,000) \| - \| - \| - \| \| Executive Assistant General Manager, Chairman’s Office (Note) \| Ming-Yao Lin \| - \| - \| - \| - \| \| Senior Vice President, Finance Division \| Yue-Chin Wu \| - \| - \| - \| - \| \| Senior Vice President, Marketing Business Group \| Yan-Qi Peng \| - \| - \| - \| - \| \| Deputy General Manager of the Chairman’s Office \| Ke-Huang Liao \| - \| - \| - \| - \| \| Deputy General Manager of the Chairman’s Office \| Wen-Bin Lee \| - \| - \| - \| - \| \| Assistant General Manager, Chairman’s Office \| Jun-Liang Wu \| - \| - \| - \| - \| \| Assistant General Manager, Chairman’s Office \| Chuang-Bao Yang \| - \| - \| - \| - \| \| Assistant General Manager, System Development Business Division \| Fu-Qing Wang \| (1,000) \| - \| (1,000) \| - \| \| Assistant General Manager, Chairman’s Office \| Shi-Rong Chiu \| - \| - \| - \| - \| \| Assistant General Manager, Finance Division \| Hong-Ming Chen \| - \| - \| - \| - \| Note 1: Chang-Lun Lee assumed office on May 28, 2025, and his shareholdings began to be reported from that date. Note 2: Shun-Chin Lee resigned on May 28, 2025, and his shareholdings are reported up to this date. (II) Information on Transfers of Shareholding with Related parties: None (III) Information on Pledges of Shareholding with Related parties: None --- VIII. Relationship information, if among the company's 10 largest shareholders any one is a related party or a relative within the second degree of kinship of another: March 31, 2026 Unit: Shares; % \| Names of Major Shareholders \| Shareholding \| \| Spouse and minor children Shareholding when elected or appointed \| \| Shareholding in the name of others in total \| \| Specify the name of the entity or person and their relationship to any of the other top 10 shareholders with which the person is a related party or has a relationship of spouse or relative within the 2nd degree \| \| Remark \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| Number of shares \| Shareholding ratio \| Number of shares \| Shareholding ratio \| Number of shares \| Shareholding ratio \| Name \| Relationship \| None \| \| HIWIN Investment Corporation Representative: Wen-Heng Chou \| 28,829,898 \| 8.15% \| - \| - \| - \| - \| Eddie W.H. Chuo \| Chairman \| \| \| \| 6,845,702 \| 1.93% \| 2,220,676 \| 0.62% \| - \| - \| Eric Y.T. Chuo \| Director \| \| \| Labor Pension Fund, New System \| 12,065,712 \| 3.41% \| Not Applicable \| \| \| \| \| \| \| \| HSBC Bank (Taiwan) Limited entrusted with custody of Fidelity Advisor Series VIII: Fidelity Advisor focuses on Emerging Markets Fund Investment Account \| 11,823,660 \| 3.34% \| Not Applicable \| \| \| \| \| \| \| \| Eric Y.T. Chuo \| 9,490,759 \| 2.68% \| 1,000,320 \| 0.28% \| - \| - \| Eddie W.H. Chuo \| Father and son \| \| \| Eddie W.H. Chuo \| 6,845,702 \| 1.93% \| 2,220,676 \| 0.62% \| - \| - \| Eric Y.T. Chuo \| Father and son \| \| \| Nanshan Life Insurance Co., Ltd. Representative: Yin Chong-Yao \| 6,792,355 \| 1.92% \| Not Applicable \| \| \| \| \| \| \| \| \| Information not available \| \| \| \| \| \| \| \| \| \| Deutsche Bank Taipei Branch in custody for Fidelity Emerging Markets Fund \| 5,929,520 \| 1.68% \| Not Applicable \| \| \| \| \| \| \| \| Shun-Chin Lee \| 5,910,011 \| 1.67% \| 3,007,957 \| 0.85% \| - \| - \| - \| - \| \| \| Olivia S.Y. Chuo \| 5,403,440 \| 1.53% \| 7,061 \| 0.00% \| - \| - \| Eric Y.T. Chuo Eddie W.H. Chuo \| Father and daughter Sister and brother \| \| \| Yongqiang Investment Co., Ltd. Shun-Chin Lee \| 5,398,388 \| 1.53% \| - \| - \| - \| - \| Shun-Chin Lee \| Chairman \| \| \| \| 5,910,011 \| 1.67% \| 3,007,957 \| 0.85% \| - \| - \| - \| - \| \| --- IX. The total number of shares and total equity stake held in any single enterprise by the company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly by the company: March 31, 2026 Unit: Shares; % \| Reinvestment Business \| Investment of the Company \| \| Investment of Business Directly or Indirectly Controlled by the Directors and Managerial officers \| \| Comprehensive Investment \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| Number of shares \| Shareholding ratio \| Number of shares \| Shareholding ratio \| Number of shares \| Shareholding ratio \| \| HIWIN Corporation, U.S.A. \| 2,148,000 \| 100% \| - \| - \| 2,148,000 \| 100% \| \| HIWIN GmbH Germany \| Note \| 100% \| - \| - \| Note \| 100% \| \| HIWIN Corporation, Japan \| 97,140 \| 100% \| - \| - \| 97,140 \| 100% \| \| Eterbright Solar Corp. \| 505,360,592 \| 89% \| 13,884,767 \| 3% \| 519,245,359 \| 92% \| \| HIWIN Singapore Pte.Ltd. \| 5,000,000 \| 100% \| - \| - \| 5,000,000 \| 100% \| \| HIWIN Corporation, Korea \| 2,320,000 \| 100% \| - \| - \| 2,320,000 \| 100% \| \| HIWIN S.R.L Italy \| Note \| 100% \| - \| - \| Note \| 100% \| \| HIWIN China \| Note \| 100% \| - \| - \| Note \| 100% \| \| HIWIN Samoa \| 100,000 \| 100% \| - \| - \| 100,000 \| 100% \| \| Matrix Precision Co., Ltd. \| 102,733,163 \| 67% \| 7,477,722 \| 5% \| 110,210,885 \| 72% \| \| Matrix Suzhou Co., Ltd. \| - \| - \| Note \| 67% \| Note \| 67% \| \| Matrix Corp. UK \| 8,249,500 \| 100% \| - \| - \| 8,249,500 \| 100% \| \| HIWIN Schweiz GmbH Switzerland \| 243,000 \| 81% \| 57,000 \| 19% \| 300,000 \| 100% \| \| HIWIN Corp. Czech \| - \| 100% \| Note \| 100% \| Note \| 100% \| \| HIWIN Bulgaria \| - \| 100% \| Note \| 100% \| Note \| 100% \| \| HIWIN France \| - \| 100% \| Note \| 100% \| Note \| 100% \| Note : No share is issued. --- # Three. Fundraising # I. Capital and shares (I) Source of share capital Unit: NT$ thousand; thousand shares \| Month/Year \| Issue price \| Authorized share capital \| \| Paid-in capital \| \| Remark \| \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| \| Number of shares \| Amount \| Number of shares \| Amount \| Source of share capital \| Subscriptions paid with property other than cash \| Others \| \| 1999.10.08 \| 12 \| 130,500 \| 1,305,000 \| 123,500 \| 1,235,000 \| Capital increase in cash \| None \| 1999.08.05 (88) TCZL(1) No.72181 \| \| 2001.10.22 \| 10 \| 151,900 \| 1,519,000 \| 135,850 \| 1,358,500 \| Capital increase out of earnings and capital reserves \| None \| 2001.08.14 (90)TCZL(1)No.151591 \| \| 2002.10.15 \| 10 \| 151,900 \| 1,519,000 \| 139,925 \| 1,399,255 \| Earnings capitalization \| None \| 2002.08.14 (91)TCZL(1)No.145107 \| \| 2003.10.09 \| 10 \| 151,900 \| 1,519,000 \| 145,544 \| 1,455,442 \| Capital increase out of earnings and employee bonuses \| None \| 2003.08.15 (92)TCZL(1)No.137138 \| \| 2004.10.05 \| 10 \| 191,038 \| 1,910,380 \| 156,918 \| 1,569,178 \| Capital increase out of earnings and employee bonuses \| None \| Jin-Guan-Zheng-1-Zi No. 0930135195, August 6, 2004 \| \| 2005.10.05 \| 10 \| 191,038 \| 1,910,380 \| 177,706 \| 1,777,059 \| Capital increase out of earnings and employee bonuses \| None \| Jin-Guan-Zheng-1-Zi No. 0940132392, August 09, 2005 \| \| 2006.08.02 \| 10 \| 300,000 \| 3,000,000 \| 201,345 \| 2,013,448 \| Capital increase out of earnings and employee bonuses \| None \| Jin-Guan-Zheng-1-Zi No. 0950133960, August 02, 2006 \| \| 2009.06.25 \| 24 \| 300,000 \| 3,000,000 \| 223,390 \| 2,233,898 \| Capital increase in cash \| None \| Jin-Guan-Zheng-1-Zi No. 0970071383, January 08, 2009 \| \| 2010.08.16 \| 10 \| 300,000 \| 3,000,000 \| 227,858 \| 2,278,576 \| Earnings capitalization \| None \| Jin-Guan-Zheng-Fa-Zi No. 0990032889, June 25, 2010 \| \| 2011.08.29 \| 10 \| 300,000 \| 3,000,000 \| 234,693 \| 2,346,933 \| Earnings capitalization \| None \| Jin-Guan-Zheng-Fa-Zi No. 1000031785, July 11, 2011 \| \| 2012.09.17 \| 10 \| 300,000 \| 3,000,000 \| 246,428 \| 2,464,280 \| Earnings capitalization \| None \| Jin-Guan-Zheng-Fa-Zi No. 1010031169, July 13, 2012 \| \| 2013.09.18 \| 10 \| 300,000 \| 3,000,000 \| 253,821 \| 2,538,208 \| Earnings capitalization \| None \| Jin-Guan-Zheng-Fa-Zi No. 1020027958, July 18, 2013 \| \| 2014.09.15 \| 10 \| 300,000 \| 3,000,000 \| 261,435 \| 2,614,354 \| Earnings capitalization \| None \| Jin-Guan-Zheng-Fa-Zi No. 1030026626, July 14, 2014 \| \| 2015.09.02 \| 10 \| 300,000 \| 3,000,000 \| 269,278 \| 2,692,785 \| Earnings capitalization \| None \| Jin-Guan-Zheng-Fa-Zi No. 1040027343, July 21, 2015 \| \| 2016.09.21 \| 10 \| 300,000 \| 3,000,000 \| 274,664 \| 2,746,640 \| Earnings capitalization \| None \| Jing-Shou-Shang-Zi No. 10501226510, September 21, 2016 \| \| 2017.09.01 \| 10 \| 300,000 \| 3,000,000 \| 280,157 \| 2,801,573 \| Earnings capitalization \| None \| Jing-Shou-Shang-Zi No. 10601126420, September 01, 2017 \| \| 2018.08.22 \| 10 \| 300,000 \| 3,000,000 \| 288,562 \| 2,885,620 \| Earnings capitalization \| None \| Jing-Shou-Shang-Zi No. 10701102130, August 22, 2018 \| \| 2018.10.05 \| 250 \| 500,000 \| 5,000,000 \| 300,562 \| 3,005,620 \| Capital increase in cash \| None \| Jing-Shou-Shang-Zi No. 10701122430, October 05, 2018 \| \| 2019.08.27 \| 10 \| 1,000,000 \| 10,000,000 \| 309,579 \| 3,095,789 \| Earnings capitalization \| None \| Jing-Shou-Shang-Zi No. 10801118450, August 27, 2019 \| \| 2020.09.16 \| 10 \| 1,000,000 \| 10,000,000 \| 318,866 \| 3,188,663 \| Earnings capitalization \| None \| Jing-Shou-Shang-Zi No. 10901168200, September 16, 2020 \| \| 2021.01.28 \| 195 \| 1,000,000 \| 10,000,000 \| 330,866 \| 3,308,663 \| Capital increase in cash \| None \| Jing-Shou-Shang-Zi No. 11001002260, January 28, 2021 \| \| 2021.10.04 \| 10 \| 1,000,000 \| 10,000,000 \| 340,792 \| 3,407,923 \| Earnings capitalization \| None \| Jing-Shou-Shang-Zi No. 11001184000, October 04, 2021 \| \| 2022.09.22 \| 10 \| 1,000,000 \| 10,000,000 \| 353,792 \| 3,537,922 \| Capital increase in cash \| None \| Jing-Shou-Shang-Zi No. 11101177240, September 22, 2022 \| --- 88 \| Type of Share \| Authorized share capital \| \| \| Remark \| \| --- \| --- \| --- \| --- \| --- \| \| \| Outstanding Shares \| Unissued Shares \| Total \| \| \| Registered common shares \| 353,792,240 \| 646,207,760 \| 1,000,000,000 \| Listed company stocks \| Information for the Shelf Registration System: none. ## (II) List of major shareholders March 31, 2026 \| Names of Major Shareholders \| Shares \| Number of shares held \| Shareholding ratio \| \| --- \| --- \| --- \| --- \| \| Hiwin Investment Co., Ltd. \| \| 28,829,898 \| 8.15% \| \| Labor Pension Fund, New System \| \| 12,065,712 \| 3.41% \| \| HSBC Bank (Taiwan) Limited entrusted with custody of Fidelity Advisor Series VIII: Fidelity Advisor focuses on Emerging Markets Fund Investment Account \| \| 11,823,660 \| 3.34% \| \| Eric Y.T. Chuo \| \| 9,490,759 \| 2.68% \| \| Eddie W.H. Chuo \| \| 6,845,702 \| 1.93% \| \| Nan Shan Life Insurance Co., Ltd. \| \| 6,792,355 \| 1.92% \| \| Deutsche Bank Taipei Branch in custody for Fidelity Emerging Markets Fund Investment Account \| \| 5,929,520 \| 1.68% \| \| Shun-Chin Lee \| \| 5,910,011 \| 1.67% \| \| Olivia S.Y. Chuo \| \| 5,403,440 \| 1.53% \| \| Yongqiang Investment Co., Ltd. \| \| 5,398,388 \| 1.53% \| ## (III) Company's dividend policy and implementation 1. Dividend policy When distributing the surplus in each fiscal year, the Company shall first make up for the loss and set aside 10% as the statutory surplus reserve except for the statutory surplus reserve has reached the Company's total capital. In accordance with other laws and regulations, the Company also sets aside (or reversals) special surplus reserves, with the second dividend increase being less than 6% (inclusive). The distribution of surplus can be made in the form of cash dividends or stock dividends. However, the proportion of stock dividends shall not be more than two-thirds of the total shareholder dividends and shareholder dividends for the year. The Company may consider the financial, business, and operational factors to distribute all or part of the remaining surplus after deducting the amount specified above, the undistributed surplus of the previous period, and the distributable surplus of the current year. The Company's Articles of Incorporation has not yet clearly specified the distribution ratio of shareholders' dividends due to the profit for the current year is subject to adjust based on future capital expenditure and capital situation and shall be handled as per the resolution of the shareholders' meeting. As the Company continues to expand its plants, the scale of reinvestment, and the R&D of new products, a certain level of funds is required to be retained. The dividend distribution ratio is expected to be approximately 35%-46% in the short term, but the actual ratio depends on the economic conditions and investment plans. 2. The dividend distribution proposed at the shareholders' meeting The 2025 earnings distribution plan, as resolved by the Board of Directors on February 26, 2026, proposed to allocate a total of NT$707,584,480 in dividends to shareholders (NT$ 2.0 per share), all distributed in cash. The cash dividends will be submitted to the shareholders' meeting according to the law after the board of directors' approval, then the authorized chairman will set a dividend record date for distribution. 3. Expected major changes in the dividend policy: None. ## (IV) The influences of the stock dividends proposed at the shareholders' meeting on the Company's business performance and earnings per share: Not applicable because the Company did not distribute stock dividends or employee stock dividends in 2025. It didn't affect the Company's business performance and earnings per share. ## (V) Employee remuneration and director remuneration 1. Percentage or scope of employee bonuses and remunerations of directors and provided for in the Articles of Incorporation: --- The Company's remuneration includes principal salary, bonuses, and employee dividends. The amount of various bonuses and employee dividends depends on the Company's overall operation and employee performance. According to the Articles of Incorporation, if the Company has earnings at the end of a fiscal year, it should allocate (1) a minimum of 1% (no less than 0.3% for the remuneration to the non-executive employees) for employee remunerations and (2) a maximum of 4% for directors' remunerations. The board of directors determines whether the distribution of employee remuneration is paid in stock or cash. The remuneration for directors is paid in cash. The distribution proposal of employee remuneration and director remuneration shall be reported to the shareholders' meeting. However, if the Company still has accumulated losses, the amount for offset shall be reserved, then the employees' and directors' remuneration may be distributed according to the above proportions. 2. The basis for estimating the amount of employee remuneration and director remuneration, the basis for calculating the number of shares to be distributed as stock bonuses, and the accounting process of the discrepancy, if any, between the actual distributed amount and the estimated figure, for the current period: After the end of the fiscal year, if there are significant differences in the distribution amount proposed by the Board of Directors, such changes will be adjusted against the initially accrued annual expenses. If the actual amounts still differ from the proposed amounts after the publication of the annual financial statement, the differences are charged to the earnings of the following year as a result of a change in accounting estimate. 3. Information of proposals approved by the Board of Directors to distribute remunerations (1) Remunerations to employees and directors in cash NT$115,859,312 for employees and NT$57,929,656 for directors. The estimated ratios were 6.0% and 3.0% respectively, comply with the Articles of Incorporation of the Company. (2) The proportion of the number of shares for employees as remunerations to net profits after tax and the total of employee bonuses of the individual or individual financial reports in the current period: Not applicable. 4. The actual distribution of employee remuneration and director remuneration in the previous year (1) The employee remunerations distributed in cash actually in 2025 were NT$156,558,502. (2) The director remunerations distributed in cash actually in 2025 were NT$78,279,251 (3) No differences between the actual distribution and the proposed amount approved by the Board Meeting. (VI) Repurchase shares by the Company: None. II. Issuance of corporate bonds: None. III. Issuance of preferred shares: None. IV. Issuance of global depository receipts: None. V. Issuance of employee share subscription warrants: None. VI. Issuance of new restricted employee shares: None. VII. Issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies: None. VIII. Capital allocation plan implementation: As of the publication date of this Annual Report, the Company hasn't issued or completed the private placement of marketable securities, nor has it completed such actions in the last three years with no effects shown yet. --- Four. Operation Overview I. A description of the business (I) Business Scope 1. HIWIN's main businesses: HIWIN is mainly engaged in the R&D, design, manufacture, sale, maintenance, and pre-sales and after-sales services of linear guideway (GW), ball screws (BS), robots, Torque Motor rotary tables. 2. Business proportion: The turnover of 2025: GW for 62%, BS for 20%, robots for 9%, others 9%. 3. Current products (services): HIWIN provides key components, industrial robots, special machines, and after-sales services for machine tools, industrial machinery, bioscience, medical equipment, equipment of the electronics industry, opto-electronics, semiconductor devices, automation, etc. The current main products of the company are listed below: \| By product \| \| \| Series \| \| --- \| --- \| --- \| --- \| \| 1 \| Linear guideways \| \| Self-lubricating type, quiet type, roller type, super heavy-duty type, micro type, smart type, high dust-proof type, high rigidity type, light weight type, high torque resistance type, cross-configuration type, ultra-low type, four-row stainless steel, UR overloaded roller \| \| 2 \| Ball screw \| \| Precision grinding, precision turning, self-lubricating, high-speed, heavy-duty, air cleaning, nut rotation, thread cutting and circulation type, quiet type, cooling type, intelligent type, economic type, precision turning, low inertia ball splines, ball splines - single-out splines and spline caps \| \| 3 \| Rotary table \| \| Double-axis double-arm rotary table, double-axis single-arm rotary table, single-axis vertical rotary table, single-axis horizontal rotary table, composite high-speed rotary table \| \| 4 \| Robot \| General industry \| Single-axis robot, articulated robotic arm series, scala robotic arm series, electric gripper series \| \| \| \| Semiconductor industry \| Wafer transfer system, wafer robot arm series, wafer edge finder, wafer loader and unloader load port \| \| \| \| Medical industry \| Robotic gait training system \| \| \| \| Strain Wave Gear \| Datorker robot strain wave gear \| \| \| \| Precision Bearing \| Crossed roller bearing, ball screw bearing, support unit \| 4. New products (services) planned to be developed: (1) Mass production of intelligent ball screw wireless sensing system. (2) New applications and expansion of intelligent linear guides and ball screws. (3) Development of collision detection function for wafer robots. (4) Development of intelligent welding robots. (5) Expansion of composite high-speed turntable specifications. (II) Industry Overview 1. Development and current state of the industry: In recent years, the machine tool industry has faced multiple challenges. Traditional manufacturing and the automotive industries have been affected by weak demand and overproduction in China, leading to slower growth and pressure for transformation. Driven by technological advancements and industrial upgrading, the machine tool sector is rapidly moving towards intelligence, digitalization, automation, greening, and precision. In particular, the development of composite, multi-axis, and high-efficiency machining has gradually become mainstream, with continued growth in demand for high-end five-axis and composite machining centers. The application of high-precision, high-efficiency four-axis and five-axis rotary tables is also becoming increasingly widespread. Mid-to-high-end machine tools have become the mainstream of global manufacturing transformation and upgrading, and are expected to account for more than 40% of high-end machine tool models within a few years. 90 --- Environmental protection and smart manufacturing will further become important barriers to industrial competition by 2025. The gradual implementation of carbon management, energy efficiency, and supply chain sustainability standards in various countries is driving machine tools and related industrial machinery to continuously strengthen energy-saving design, material reduction, and life-cycle management during the design and production processes to reduce overall carbon emissions and resource consumption. The integration of smart manufacturing and green energy further promotes the application of the circular economy, enabling resource reuse and reducing environmental impact in areas such as battery recycling, modular component design, and remanufacturing. The semiconductor industry continues to show strong growth, primarily driven by the rapid expansion of generative AI, cloud data centers, and high-performance computing. Advanced processes, high-bandwidth memory (HBM), and advanced packaging technologies have become the focus of equipment investment, with demand for wafer fabrication equipment and back-end packaging and testing equipment increasing simultaneously. As processes miniaturize and automation increases, the market for wafer transport, storage, and calibration equipment is accelerating, incorporating smart monitoring and preventative maintenance technologies to reduce downtime risks and improve yield. On the other hand, geopolitics and supply chain resilience remain key industry issues, with global expansion extending to the Americas, Japan, South Korea, and Southeast Asia to strengthen local supply capabilities. In recent years, various industries have expanded the adoption of advanced machinery and technological solutions. Several factors underlie this trend. For example, rising personnel costs have led to increased production costs and decreased productivity. Therefore, many companies are turning to automation solutions as a more economical option, resulting in the continued growth of the global general industrial robot market over the past few years. The global market for general industrial robots is projected to reach approximately 560,000-580,000 units installed in 2025, with a market size of US$21-22 billion. It is expected to increase to 700,000 units by 2026, reaching a market size of US$24-25 billion. The global rehabilitation robot market is expected to continue its rapid growth in 2025, driven by an aging population, rising neurological diseases, shortages of medical personnel, and the maturation of AI technology. The market size is projected to increase from US$1.48 billion in 2024 to US$1.81 billion, representing a CAGR of 22.6%, and is expected to reach US$4.03 billion by 2029. Key growth drivers include: the rapid expansion of the global population aged 60 and over, driving long-term rehabilitation demand; the rising prevalence of neuromuscular and musculoskeletal diseases such as stroke, spinal cord injury, and Parkinson's disease; medical labor shortages leading to increased reliance on smart and robotic assistance in hospitals; and the integration of AI, sensors, and cloud data driving rehabilitation towards precision, personalization, and remote access. Overall, ESG has evolved from a trending topic into a core element of business operations and industrial competition. Sustainability strategies not only influence manufacturing processes and product design but also profoundly impact supply chain management and market positioning. Through the adoption of low-carbon manufacturing, the circular economy, and smart production, companies can strengthen their long-term competitiveness and create differentiated value. With the combined forces of policy, technology, and the market, ESG will continue to drive industrial innovation and shape a more resilient and sustainable global manufacturing ecosystem. 2. Correlation among the up-stream, mid-stream and down-stream industries of main products: \| Raw materials (upstream) \| Main products \| Main applications (downstream) \| \| --- \| --- \| --- \| \| Steel, steel balls \| Ball screw Linear guideways \| Semiconductor and optoelectronic manufacturing and testing equipment, automation equipment, life sciences medical equipment, robots, electronic industry, machine tools, industrial machinery. \| 3. Product development trends: With the rapid evolution of IoT and AI technologies in recent years, the application of intelligent machinery and equipment continues to expand. HIWIN Technologies' intelligent ball screw has become an industry leader, not only incorporating its self-developed dedicated sensors but also combining big data accumulated from actual online operations to monitor screw temperature, vibration, and lubrication status remotely in real time. Through algorithms, it predicts lifespan and implements preventative maintenance. This solution provides real-time --- feedback on equipment maintenance scheduling, helping customers plan maintenance operations in advance, improving production efficiency and equipment uptime, avoiding losses caused by unexpected downtime, and ultimately realizing the intelligent and predictive manufacturing emphasized by Industry 4.0. Intelligent lubrication technology can also save factories approximately 40% to 70% of oil consumption, balancing production efficiency and sustainable development. With increasing chip integration and the accelerated adoption of technologies such as 2.5D, 3D ICs, and wafer-level packaging, the complexity and precision requirements of manufacturing processes have increased significantly, making it difficult for traditional standardized equipment to fully meet the demands. Equipment suppliers must possess high flexibility, capable of providing modular and customized solutions to accommodate different wafer sizes, material properties, and process paths, while ensuring stable operation over extended periods in high-cleanliness environments. Simultaneously, intelligent technology becomes crucial. Through AI-driven process monitoring and dynamic adjustments, real-time analysis of sensor data, and prediction of equipment status, downtime risks and scrap rates can be effectively reduced. Future semiconductor automation equipment will not only pursue precision and reliability but also integrate AI, cloud, and edge control to create intelligent systems with self-diagnostic and preventative maintenance capabilities. With the rapid maturation of AI technology, industrial robots are transitioning from traditional automation to a new stage of intelligentization. Previously, robots relied on fixed programs to perform tasks, exhibiting limited flexibility in the face of diverse processes and complex scenarios. With the introduction of AI, robots, through visual recognition, deep learning, and real-time data analysis, possess perception, judgment, and self-learning capabilities, dynamically adjusting their action strategies and significantly improving accuracy and operational flexibility. Currently, AI-driven applications are widely implemented in areas such as smart welding, precision assembly, logistics handling, and human-robot collaboration. Leading global companies are actively investing in AI to enhance motion control, environmental understanding, and human-robot collaboration capabilities, gradually moving from demonstrations to practical applications. Since the development of Industry 4.0, the manufacturing industry has undergone the explicit and implicit economic impacts of declining birth rates and the global pandemic, and has now entered the AI era. Robots are the key hardware that runs through each stage of transformation. HIWIN Group has long been deeply committed to the self-sufficiency of key components, covering ball screws, linear guides, harmonic reducers, bearings, servo motors, and control units, forming a highly vertically integrated supply capability. Key robot components have long been dominated by European, American, and Japanese manufacturers, often accounting for more than 50% of the cost. HIWIN maintains a high delivery rate and a competitive cost structure through its correct self-manufacturing strategy for key materials and continuous R&D achievements. Combined with its system integration technology advantages, it further enhances product brand awareness and industry leadership. Five-axis high-end machine tools and HIWIN's self-developed Torque Motor rotary tables have gradually become important core components for the upgrading of global manufacturing, playing a crucial role in improving processing efficiency, accuracy, and speed. As the demand for multi-functionality and high speed continues to increase in the high-end manufacturing market, the development of high-speed rotary tables will become an important trend in the future machine tool industry, providing more precise and efficient overall solutions for high-end applications. In the medical and care fields, rehabilitation robots continue to experience rapid technological advancements and expanded applications. AI and machine learning are widely integrated into training intensity adjustment, gait assistance, and muscle strength compensation mechanisms. High-density sensors, real-time feedback systems, cloud data platforms, and connections with electronic medical records are enabling rehabilitation treatments to become more precise, traceable, and long-term. The overall application scope has also expanded from hospitals to long-term care facilities and home care, and is being widely adopted in neurorehabilitation centers, improving the density and accessibility of rehabilitation services. 4. Competition of products: Amid the ongoing global ESG (Environmental, Social, and Governance) wave, the manufacturing industry is accelerating the adoption of key technologies that balance efficiency and sustainability. HIWIN Technologies, responding to market demands for energy 92 --- conservation, carbon reduction, and long-term equipment operation, is actively developing low-maintenance, low-consumption linear drive solutions and has launched self-lubricating linear guide products, becoming a significant contributor to smart manufacturing and green production. HIWIN continues to deepen its smart key component layout, leading the industry with the launch of a smart ball screw that simultaneously provides four diagnostic functions: temperature, preload, vibration, and lubrication. Its level of intelligence surpasses that of European and Japanese competitors. The HIWIN i4.0BS, as a crucial starting point for the intelligentization of machinery, can collect and transmit equipment operating information in real time, assisting customers in making predictive maintenance and repair decisions. With the increasing demand for remote monitoring, customers can monitor equipment status without entering the production line, improving the efficiency of smart factory management. The newly developed wireless sensing system solves the complex problems of signal cable routing and electrical control integration for customers installing sensors, offering particular advantages for large machines. Facing global labor shortages and rapidly evolving technological demands, industries such as semiconductors, AI, smart manufacturing, and humanoid robots continue to grow, with increasingly stringent requirements for lightweight, miniaturized, and high-response performance in their end-user equipment. To overcome space limitations while ensuring fatigue life, HIWIN has developed a series of miniature ball screws that maintain excellent lead accuracy and load capacity even with extremely small radial dimensions, meeting the stringent requirements of high-density and precision equipment. Simultaneously, addressing the dynamic performance requirements of high-speed automated equipment, HIWIN has launched low-inertia ball splines, significantly improving equipment acceleration response and helping customers effectively shorten process cycles and increase overall production efficiency. The machine tool industry faces significant pressure from the rapid rise of Chinese competitors and intensified price competition, coupled with changes in tariff preferences. In this environment, providing screws and linear guides with stable quality, performance, and delivery time has become crucial to HIWIN's core competitiveness. HIWIN's independently developed UR series products have successfully broken through the limitations of previous high-end machine tools that relied heavily on Japanese and German roller linear guideways. Balancing performance, cost, and supply flexibility, they provide cost-effective alternatives for customers in the domestic and regional markets. As machine tools evolve towards five-axis, multi-axis, and high-speed technologies, the UR series continues to see increased application depth and breadth in the high-end machine tool market, becoming a crucial component in creating high-value-added equipment. In the fields of high-end machining and five-axis applications, HIWIN's Torque Motor rotary tables have gradually narrowed the technological gap with European suppliers. Through its precision performance, cost structure, and local service advantages, it is bringing a new competitive landscape to the Asian high-end machine tool market. With increasing product maturity and market acceptance, HIWIN is expected to further expand its international market presence and increase its market share in high-end rotary and multi-axis machining applications. In semiconductor manufacturing processes, the transportation, storage, and calibration of wafers require extremely high precision and stability; equipment performance directly impacts yield and production capacity. HIWIN Technologies, leveraging over 30 years of core linear drive technology, provides high-precision, high-reliability solutions widely used in critical equipment such as EFEM front-end modules, wafer robots, loading and unloading machines, and wafer edge finders. HIWIN has further introduced intelligent linear guides, using dedicated sensors to monitor vibration and temperature in real time, providing functions such as status monitoring, anomaly alerts, intelligent maintenance, and predictive repair. This effectively reduces the risk of unexpected downtime and scrap, helping the semiconductor industry strengthen its competitiveness. In the increasingly competitive global rehabilitation robot market, product technology focuses on AI real-time adjustment, sensing accuracy, clinical application validation, and integration with remote rehabilitation. HIWIN leverages its self-sufficiency in supplying components from ball screws, harmonic reducers, torque motors, and drives, forming a dual competitive model of "components plus complete machines" that combines cost and system integration advantages. HIWIN's lower limb rehabilitation robot has incorporated an AI "machine coach" mode that 93 --- can real-time assess the user's physical condition and dynamically adjust training intensity, making rehabilitation treatment more personalized and safer, strengthening its competitive position in the medical and AI robotics markets. Overall, HIWIN has built a complete portfolio of Industry 4.0 and smart manufacturing products, providing customers with one-stop upgrade services from key components to system integration. In several whole-plant smart transformation projects, HIWIN has become the sole integrator, demonstrating its competitive strength in electromechanical integration and system services. Moving forward, HIWIN will continue to implement its ESG sustainability strategy, developing low-carbon, high-efficiency products and processes, and further strengthening the resilience and long-term sustainability value of the HIWIN brand through energy-saving projects and international certification mechanisms. # (III) Technology and R&D Overview A total of 77 patent applications were submitted by HIWIN during 2025, and 69 patents were granted. As of the end of 2025, there were 1,942 patents that have been obtained and are still effective. 1. R&D expenses in the most recent fiscal year and as of the as of the publication date of this Annual Report Unit: NT$ thousand \| Item \| 2025 \| 2024 \| \| --- \| --- \| --- \| \| R&D expenses \| 1,024,660 \| 963,362 \| 2. Technologies and products developed successfully in the most recent five years \| Year \| Product \| \| --- \| --- \| \| 2021 \| 1. Prototype development of intelligent linear guideway i4.0GW. 2. Mass production of MRG-P110, a new generation of lower body strength training machine. 3. The E-series of wafer robots has been developed and currently under test-production. 4. Completed the prototype development of composite high-speed rotary table. \| \| 2022 \| 1. Completed the prototype development of the rotary table for EDM equipment, RCH- 100E. 2. Mass production of the next-generation servo rotary actuator. 3. Mass production of the four-row stainless steel linear guideway. 4. The A-series of wafer robotic arms has been developed and certified, and currently under test-production. \| \| 2023 \| 1. Expansion of standard and customized stainless steel linear guideway. 2. Smart single-axis robot prototype completed. 3. Prototype development of EDM equipment specialized rotary table RAS-125E completed. \| \| 2024 \| 1. Development of UR Ultra-Loading Rolling Linear Guideway 2. Mass production of the next-generation servo rotary actuator. 3. Prototype development of EDM equipment specialized rotary table RAB-800E completed. 4. The wafer load port has been developed and put into trial mass production and customized design is available. \| \| 2025 \| 1. Mass production of EL self-lubricating linear guideways. 2. Development of the MBS series of miniature ball screws. 3. Completion of prototype development for an intelligent ball screw wireless sensing system. 4. Mass production of composite high-speed rotary tables. 5. Completion of R&D, pilot production, and customized design services for the M series of wafer robots. \| # (IV) Long- and Short Term Business Development Plan 1. Short-term business development plan (1) Deepen Mechatronics Integration: Provide high-value-added mechatronics integration solutions to help customers optimize production efficiency and equipment performance. (2) Consolidate Leading Position: Continuously optimize linear drives and precision key components to strengthen competitiveness in performance, quality, and cost, ensuring a leading edge in the global market. (3) Explore New Blue Oceans: Increase the sales share of mechatronics and innovative products, actively expanding into niche markets to increase overall market penetration. (4) Promote High-End Applications: Accelerate the application of Torque Motor rotary tables in mid-to-high-end equipment and diverse fields, leveraging their high-speed and high-precision characteristics to help customers achieve process upgrades. --- (5) Strengthen Supply Chain Role: Integrate precision transmission components, robots, and subsystem products, leveraging the Group's Total Solution capabilities to solidify its position as a key supplier in the advanced process supply chain. (6) Seize Green Energy Opportunities: Develop green energy industry applications, closely following the development trends of renewable energy and energy infrastructure to expand new energy market opportunities. (7) Expand Modular Applications: Promote modular robot systems, deepen cooperation with system integrators and strategic partners, broadly expand application scenarios, and increase market adoption. (8) Cultivate Trending Industries: Leverage advanced technology and integration capabilities to become the best core supplier partner for key customers in trending industries such as semiconductors, AI-related industries, biotechnology and medical care, and intelligent automation. (9) Drive Smart Transformation: Provide smart products with predictive maintenance and proactive compensation functions, leading customers' equipment towards smarter and more precise development, creating win-win value. (10) Implement ESG Vision: Continuously promote ESG initiatives, develop low-carbon and energy-saving products and solutions, and support customers and the supply chain in achieving sustainable transformation goals. # 2. Long Term Business Development Plan (1) Innovative Solutions: Integrating the Group's resources and electromechanical product advantages, we provide cross-industry innovative solutions, leading customer transformation and strengthening core competitiveness. (2) Deepening Global Channels: We deepen cooperation with sales channels and industry customers, enhance the efficiency of electromechanical integration applications, and expand our global market presence. (3) Improving the Service Ecosystem: We extend the sales chain and service network to end customers, strengthen our ecosystem supply role, and promote supply chain upgrading and sustainable growth. (4) Value Chain Extension: We deeply cultivate global trending industries, accurately grasp value chain extension opportunities, and support the company's long-term and stable growth. (5) Flexible Supply Chain Layout: In response to the global supply chain restructuring trend, we accelerate the layout of emerging markets and strengthen regional supply and local service capabilities. (6) Moving Towards Low-Carbon Transformation: We continuously promote ESG strategies, implement sustainable operation goals, and drive industry and the environment towards low-carbon and green development trends. (7) Global Localized Services: We comprehensively strengthen our global localized service capabilities, optimize capacity allocation and technical support, and enhance market responsiveness and brand influence. # II. Market, production, and sales status # (I) Market analysis 1. Sales regions of the main products: HIWIN's products are sold and operated in Taiwan, China, Germany, USA and Japan as follows: Unit: NT$ thousand \| Business locations of BUs \| 2025 \| 2024 \| \| --- \| --- \| --- \| \| Taiwan \| 10,574,957 \| 11,004,063 \| \| China \| 5,098,734 \| 5,079,431 \| \| Germany \| 3,932,114 \| 3,859,779 \| \| USA \| 1,247,856 \| 1,165,478 \| \| Japan \| 930,676 \| 876,334 \| \| Others \| 2,478,301 \| 2,406,599 \| \| Total \| 24,262,638 \| 24,391,684 \| --- 2. Future supply, demand and growth of the market: According to the International Monetary Fund's (IMF) updated World Economic Outlook report released in January 2026, global economic growth is projected at 3.3% in 2026, a slight increase from 2025, indicating that the global economy continues to adapt to and maintain stable growth momentum amidst geopolitical and trade policy adjustments. As for major economies, the US, benefiting from increased investment in AI infrastructure, data centers, and high-performance computing, has its 2026 economic growth forecast revised upward to approximately 2.4%. China, driven by export restructuring, a recovery in domestic demand, and easing of some tariff pressures, is expected to achieve approximately 4.5% growth in 2026. The Eurozone, affected by structural factors and energy costs, will maintain a moderate level of economic growth, with a projected growth rate of approximately 1.3% in 2026. Japan, driven by fiscal stimulus policies and a recovery in corporate investment, continues its economic recovery momentum, with a projected growth rate of approximately 0.7% in 2026. Overall, growth momentum in advanced economies remains constrained, with technology investment becoming a crucial source of support. Regarding the trade environment, while tariff and trade policy adjustments since 2025 have caused inflation and cost pressures, businesses have gradually mitigated the impact through supply chain diversification and regionalization. Southeast Asia, India, and other emerging Asian markets continue to be key nodes in the global supply chain restructuring, driven by regional trade and capacity transfer. Continued growth in trade and investment activities within Asia helps support medium- to long-term demand in the manufacturing sector. On the industry front, multiple international research institutions unanimously point out that investments related to AI, robotics, and automation remain a crucial engine for global growth. From 2026 onwards, the application of AI hardware, AI servers, smart manufacturing equipment, and robotic systems will continue to expand, driving high growth momentum in related industries. Research shows that the AI robotics and automation market will maintain high double-digit growth in the coming years, becoming a significant support for demand in semiconductors, precision machinery, and automation equipment. However, geopolitical factors, the stability of the semiconductor supply chain, and the supply of key components remain major potential risk factors. In the energy and infrastructure sector, global demand for renewable energy, electric vehicles, and energy storage systems continues to expand. Global efforts to accelerate carbon reduction policies and smart grid deployments are driving high growth in investment in battery manufacturing, power systems, and energy-saving equipment, leading to a corresponding increase in demand for green energy and energy-saving components. This trend is also prompting companies to increase their procurement of high-efficiency transmission components, low-carbon process equipment, and smart monitoring systems. Overall, against the backdrop of moderate global economic growth, continued deepening of technology investment, and accelerated supply chain restructuring, the demand for automation, smart technology, and high-precision equipment in the manufacturing sector is clearly evident. HIWIN Technologies will continue to strengthen its global and regional supply chain layout, enhance localized production and service capabilities, shorten delivery times, and mitigate external shocks. Simultaneously, through technological innovation and smart manufacturing solutions, HIWIN will enhance customers' production efficiency and supply chain resilience. Looking ahead, HIWIN will continue to invest in key technology R&D, expand its global market footprint, consolidate its core competitive advantages, and work with customers to embrace the long-term growth opportunities brought by smart manufacturing and sustainable development. 3. Competitive edges: (1) Focus on electromechanical integration solutions, providing total solutions for smart automation and equipment upgrades. (2) Integrate internal resources to leverage synergies and comprehensively enhance market competitiveness. (3) High self-manufacturing rates of key components bring a high degree of integration advantage, demonstrating all-round competitiveness in design, quality, delivery time, cost, and service. (4) A well-established global sales and service network provides localized support capabilities, continuously optimizing the customer experience. 96 --- (5) A broad global footprint and diverse industrial applications provide resilience against market risks, reducing the impact of regional economic fluctuations on business. (6) Continuously invest in R&D and innovation, and accelerate product design and implementation efficiency through collaborative design and development (ESI) with customers. (7) HIWIN boasts a strong global brand, accumulating a good reputation through technological innovation, high-quality products, and global service, forming a continuously improving brand value cycle. (8) Invest in ESG and sustainable development, implement carbon inventory, energy conservation and carbon reduction, and green manufacturing, and improve supply chain environmental standards to meet the sustainable business needs of global customers and strengthen long-term competitive advantages. 4. Factors Favorable and Unfavorable to Future Development and Response Strategies: (1) Favorable Factors: (1-1) Strong brand power and customer trust enhance the company's global competitive advantage. (1-2) Leading key technologies and forward-looking product development strengthen the company's R&D capabilities, supporting long-term growth. (1-3) A solid market foundation for linear drive products, with a large and stable customer base. (1-4) Electromechanical integration and innovative products offer high added value, making the company a key partner for customer transformation and upgrading. (1-5) Industrial transformation and upgrading drive demand for new technology applications, continuously creating business opportunities. (1-6) Global trends of declining birth rates and aging populations boost demand for automation and smart manufacturing, creating a promising market outlook. (1-7) Rapidly expanding AI-related investments, from semiconductors and servers to power infrastructure, are driving overall supply chain growth. (1-8) Semiconductors have become geopolitically strategic resources, with global investment in wafer fabs and supply chain construction creating long-term business opportunities. (1-9) Positioned in a key link of the supply chain, the company possesses strategic influence in the global industrial ecosystem. (1-10) A well-established global sales and market feedback mechanism enables real-time monitoring of market trends and customer needs. (1-11) A comprehensive global footprint and regional operational advantages allow for effective risk diversification and flexible response to industry changes in various regions through the introduction of new markets, new applications, and new customers. (2) Unfavorable Factors: (3-1) Increased competition in the linear drive market, with more low-price competitors, is putting upward pressure on prices. (3-2) Strong demand for highly skilled technical personnel in the semiconductor industry may lead to a shortage of skilled workers and rising labor costs. (3-3) Inflation and rising wages are pushing up production costs. (3-4) High barriers to entry for system integrators may affect the speed of market rollout of integrated solutions. (3-5) Acquiring skilled personnel in intelligent systems and software technologies is difficult, increasing R&D challenges. (3-6) Increased complexity in managing global subsidiaries requires a stronger international perspective and cultural understanding to enhance cross-border collaboration. (3-7) Weak regional economies are making industry investments more conservative, affecting customer purchasing intentions. (3-8) Escalating geopolitical and regional conflicts are impacting the stability of global supply chains and overseas market expansion. 97 --- (3) Strategies for Dealing with Unfavorable Factors: (3-1) Strengthen the group's electromechanical integration solutions and services to enhance the added value of customer equipment and create differentiated competition. (3-2) Accelerate production automation and process optimization to ensure stable supply and reduce costs. (3-3) Flexibly adjust cooperation models, expand partnerships through value co-creation, and continuously expand the industrial ecosystem. (3-4) Deepen industry-academia collaboration and technology R&D, and strengthen key talent and technologies in AI, semiconductors, automation, smart manufacturing, and cross-disciplinary fields. (3-5) Strengthen global manager training to improve cultural intelligence and multinational management efficiency. (3-6) Promote the localization of subsidiaries to enhance regional market competitiveness and customer satisfaction. (3-7) Increase market share and expand brand influence through an industry leader model. (3-8) Strengthen market intelligence gathering and responsiveness capabilities, establish a high-density market detection network, and quickly adjust regional strategies to maintain a competitive advantage. # (II) Important Use And Manufacturing Process of Main Products # 1. Primary Use of Products: HIWIN Technologies' drive control products are mainly used in semiconductor and optoelectronic manufacturing and testing equipment, automation equipment, biomedical equipment, electronics industry, machine tools, solar energy, LED, industrial machinery, etc. This series of drive control products meets the modern society's pursuit of low pollution, low noise, low power consumption, automatic control, and refinement, as well as the growing environmental awareness and pursuit of a high-quality life. The more developed the industry, the greater the demand. # 2. Manufacturing Process of Main Products: (1) Ball Screw Tapping $\rightarrow$ thermal treatment $\rightarrow$ thread-cutting $\rightarrow$ shoulder machining $\rightarrow$ external diameter processing $\rightarrow$ precision shaping $\rightarrow$ test $\rightarrow$ assemble $\rightarrow$ inspect (2) Linear guideways Thermal treatment $\rightarrow$ drill hole $\rightarrow$ precision forming $\rightarrow$ inspect $\rightarrow$ assemble $\rightarrow$ final inspection (III)Supply Of Main Raw Materials \| Material \| Country \| Supply status \| \| --- \| --- \| --- \| \| Steel \| Taiwan \| Good \| \| Steel \| Japan \| Good \| \| Steel \| Germany \| Good \| \| Steel \| Korea \| Good \| (IV)Customers With Over $10\%$ of Gross Purchase or Gross Sales In Either Year of the Most Recent 2 Fiscal Years: 1. List of manufacturers with over $10\%$ of gross purchase Unit: NT$ thousand \| 2024 \| \| \| \| 2025 \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| Name \| Amount \| % to Net Purchases \| Relationship with the Issuer \| Name \| Amount \| % to Net Purchases \| Relationship with the Issuer \| \| No supplier with over 10% of gross purchase \| \| \| \| No supplier with over 10% of gross purchase \| \| \| \| \| Net Purchases \| 9,291,497 \| 100.0 \| \| Net Purchases \| 8,996,607 \| 100.0 \| \| Reason for the change: No major changes in the last two terms. --- 2. List of customer with over 10\% of gross sales Unit: NT$ thousand \| 2024 \| \| \| \| 2025 \| \| \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| --- \| \| Name \| Amount \| % to Net Sales \| Relationship with the Issuer \| Name \| Amount \| % to Net Sales \| Relationship with the Issuer \| \| Customer A \| 4,597,069 \| 18.8 \| None \| Customer A \| 4,274,149 \| 17.6 \| None \| \| Customer B \| 1,873,621 \| 7.7 \| None \| Customer B \| 2,455,819 \| 10.1 \| None \| \| Others \| 17,920,994 \| 73.5 \| \| Others \| 17,532,670 \| 72.3 \| \| \| Net Sales \| 24,391,684 \| 100.0 \| \| Net Sales \| 24,262,638 \| 100.0 \| \| Reason for the change: Customer A's main customers are in the semiconductor industry. Due to the strong demand in the semiconductor industry, the sales amount and proportion to customers in 2025 and 2024 were both greater than $10\%$ . However, due to the downturn in the medical application industry, the sales amount and proportion in 2025 decreased compared to 2024. Customer B's growth is mainly driven by customer applications in trending industries such as semiconductors, automation, new energy and machine tools, which drives the sales of screws, linear guides and various robots. # III. Employee information of the most recent two years and up to the publication date of this annual report \| Year \| \| End of 2024 \| End of 2025 \| March 31, 2026 \| \| --- \| --- \| --- \| --- \| --- \| \| Number of employees (Note) \| Indirect personnel \| 2,437 \| 2,542 \| 2,368 \| \| \| Direct personnel \| 3,915 \| 3,701 \| 3,831 \| \| \| Total (people) \| 6,352 \| 6,243 \| 6,199 \| \| Average Age(Note) \| \| 36.3 \| 37.3 \| 37.2 \| \| Average Length of Service (Note) \| \| 7.7 \| 8.3 \| 8.5 \| \| Education Background (%) \| Doctor \| 0.27 \| 0.29 \| 0.27 \| \| \| Master \| 10.70 \| 11.18 \| 11.10 \| \| \| College \| 53.95 \| 44.77 \| 44.54 \| \| \| Senior high school \| 30.56 \| 38.88 \| 39.38 \| \| \| Below senior high school \| 4.52 \| 4.88 \| 4.71 \| Note: The number of employees, average age, average years of service, and educational background all include subsidiaries. # IV. Information regarding expenditure on environmental protection For the most recent year and up to the date of publication of the annual report, the total amount of losses (including compensation) and disposals suffered by the company due to environmental pollution, as well as future countermeasures (including corrective measures) and possible expenditures (including estimated amounts of losses, disposals and compensations that may result from failure to take countermeasures; if such estimates cannot be reasonably estimated, the reasons for such inability should be explained): HIWIN has not suffered any losses (including compensation) or disposals due to environmental pollution in the most recent year and up to the date of publication of the annual report, therefore this does not apply. Other environmental safety and health information is explained below: # (I) Air Pollution Control 1. The stationary pollution-source manufacturing process of HIWIN shall be equipped with pollution prevention equipment and maintained regularly to improve the stability of equipment and ensure that the exhaust gas complies with the requirements of the regulations. 2. The concentrations of various pollutants tested in 2025 were far below the legal limits. # (II) Water Resource And Wastewater Management 1. To mitigate the impact of water shortages on operations, the company continues to strengthen water resource management, promote water recycling and water efficiency improvement programs, and will continue to refine management practices. The company continues to optimize its cooling water recycling system and improve process water conservation. Total water consumption in 2025 is 585,000 tons, a $30\%$ decrease compared to the baseline year (2021) of 833,000 tons. --- 2. HIWIN Technologies has greywater recycling systems at its operations headquarters, Jingke Plant 2, Yunke Plant 1, Yunke Plant 2, Yunke Plant 3, and Dapumei Plant 3. In 2025, water recycling volume reached 106,000 tons, accounting for 18.1% of total water consumption. This recycled water is used for toilet flushing, irrigation, and cooling towers. Wastewater from Yunke Plant 2, Yunke Plant 3, and Dapumei Plant 3 is treated and then used in processes. The company is moving towards its goal of achieving a recycling rate of over 21% by 2030. 3. Each of HIWIN’s plants is equipped with wastewater treatment facilities and has applied for water pollution prevention and control permits in accordance with the law. After treatment, the wastewater is discharged into the industrial park’s sewage system after meeting the discharge standards. The plant conducts annual drills based on the wastewater treatment procedures and commissions an environmental protection agency accredited by the Environmental Protection Administration to test the discharged wastewater monthly, thereby reducing the environmental impact of abnormal wastewater treatment. ## (III) Waste Management and Recycling 1. HIWIN Technologies plans environmental management training courses to enhance employees' environmental sustainability awareness. Adhering to the principle of recycling, it regularly conducts lifecycle assessments of raw materials, products, transportation, and packaging. The concept of a circular economy is introduced from the R&D stage, coupled with two-way cooperation at the manufacturing stage, to implement waste reduction measures at the source. The company actively develops waste recycling companies, seeking waste recycling pathways and opportunities, and is committed to waste reduction and resource recovery. 2. In accordance with the environmental regulations set by the Ministry of Environmental Protection, the company has formulated environmental safety and health management methods and a management information system, and has obtained ISO 14001 environmental management system certification. Policies to promote a circular economy and waste management include: (1) In the product design and R&D stage, through technological innovation, the company improves the energy efficiency of products, recycles raw materials to end-use products, ensures that products do not contain harmful or prohibited substances, reduces environmental impact, and fulfills sustainable product responsibility. (2) In the manufacturing and production stages, improve energy and water efficiency, reduce greenhouse gas emissions, properly treat, reduce, and manage wastewater, waste, air pollution, and hazardous substances, and implement green manufacturing and recycling practices. (3) In the transportation and logistics stages, prioritize the use of lightweight and recycled paper and other green packaging materials, procure raw materials locally, and reduce transportation distances and carbon emissions. (4) The company has set waste recycling rate targets: 88% in 2026 and 90% in 2030. 3. The implementation status for 2025 is as follows: (1) The total waste output from the Taiwan plant was 9,498 metric tons, including 9,451 metric tons of general industrial waste and 46 metric tons of hazardous industrial waste. Waste was temporarily stored in designated waste storage areas according to type, and then transported by environmental protection agency-approved disposal companies. Treatment methods included recycling 8,244 metric tons (87%), incineration and landfilling 1,254 metric tons (13%). Personnel were periodically dispatched to the treatment plants to ensure that the transportation and treatment processes complied with regulations, standards, and company requirements. No violations occurred in 2025. (2) Through the introduction of waste reduction equipment, the amount of waste oil, water, waste liquid, and sludge transported was effectively reduced by a total of 1,016 tons. Through the development of recycling companies, the recycling rate increased by 1.8% compared to 2024. (3) Hazardous industrial waste has a severe impact on the environment and causes significant pollution. To effectively reduce its environmental impact, HIWIN Technologies has installed hazardous waste liquid treatment facilities, resulting in a reduction of 211 tons of hazardous industrial waste by 2025. (4) Promoting the recycling of wooden crates transforms packaging materials from disposable consumables into sustainable resources. From 2024 to 2025, a total of 10,638 kg of wooden crates were returned to the supply chain, avoiding the need for new timber manufacturing. Based on the calculation that each mature tree provides approximately 300 kg of timber, 100 --- this is equivalent to protecting approximately 35 trees, effectively reducing deforestation pressure. (5) HIWIN Technologies has planned waste disposal and resource recycling classification training for new employees and regular training for existing employees. The effectiveness of the training is ensured through testing, and the training completion rate reached 100% by 2025. In daily operations, environmental personnel conduct waste classification audits, and the audit results are reported regularly in meetings to discuss improvement measures. ## (IV) Greenhouse gas reduction targets, strategies and 2030 action plan In response to climate change risks and the global trend towards net-zero emissions, our company has established a comprehensive greenhouse gas management system and incorporated greenhouse gas reduction into the core of our sustainable development and operational strategy. Greenhouse gas emissions are assessed and managed in accordance with the GHG Protocol, covering Category 1 (direct emissions) and Category 2 (indirect energy emissions), and gradually expanding to Category 3 emissions related to the value chain. 1. Greenhouse Gas Reduction Baseline Year and Quantitative Targets Our company uses 2021 as the greenhouse gas reduction base year and has set the following clear medium- to long-term reduction targets: By 2030, reduce Category 1 and Category 2 greenhouse gas emissions by 42% compared to the base year. Achieve the long-term goal of net-zero greenhouse gas emissions by 2050. 2. Carbon Reduction Strategy and Specific Action Plan for 2030 To achieve the aforementioned reduction targets, the Company plans and will continue to implement the following carbon reduction strategies and specific actions: (1) Process and equipment energy efficiency improvement: Continuously replace high-energy-consuming equipment, optimize process efficiency, and implement smart manufacturing and energy management systems to reduce energy consumption and emission intensity per unit of output. (2) Increase the proportion of renewable energy adoption and use: Gradually increase the proportion of renewable energy use through self-consumption solar photovoltaic systems, green electricity procurement, and renewable energy vouchers. (3) Deepen energy management system: Promote international energy management systems and track the effectiveness of energy-saving projects, incorporating energy performance into internal management and assessment mechanisms. (4) Low-carbon design and supply chain cooperation: Incorporate carbon reduction considerations into product design and raw material procurement stages, and work with suppliers to promote low-carbon processes and carbon reduction actions. 3. Status of Achievement of Carbon Reduction Targets By 2025, through the aforementioned carbon reduction measures, HIWIN has reduced greenhouse gas emissions in Categories I and II by 31% compared to the base year (actual figures are subject to verification by TÜV Rheinland Taiwan), and the annual reduction results are in line with the established carbon reduction path. The action plan will continue to be reviewed and revised to ensure that the 2030 carbon reduction target is achieved on schedule. ## V. Labor relations (I) Employee welfare measures, further education, trainings, retirement system and implementation, labor-management agreement and employee benefit protection measures: HIWIN adheres to the philosophy of "employees are the Company's greatest assets," and strives to create a safe, clean, and friendly working environment, and promotes the declaration of "Happy Company" to achieve work-life balance for employees. The Company formulates and discloses human rights policies with reference to the International Bill of Human Rights. The Company implements gender equality, diversity, and inclusion without discrimination based on gender, religion, race, or nationality. The Company proactively recruits people with disabilities Recruit talents from all sectors in the society. HIWIN offers comprehensive benefits, including psychological counseling, health care, family-friendly policies, and various subsidies. Activities such as family days and hiking trips are also organized to promote employees' physical and mental health. The Company has also established a variety of communication channels to listen to employees' voices through labor-management meetings, opinion mailboxes, and hotlines to build 101 --- harmonious labor-management relations. HIWIN has been actively nurturing professional talents with a comprehensive training system and fair recruitment strategy, while prudently contributing pensions pursuant to the Labor Standards Act to protect employees' long-term interests. With these efforts, we have realized the goal of co-prosperity for employees and the enterprise. 1. Employee benefit measures: (1) Taiwan Headquarters \| Item \| Description \| \| --- \| --- \| \| Employee Assistance Programs (EAPs) \| 1. Four main categories of consulting services: (1) Psychological counseling: Collaborating with 7 counseling centers, employees can enjoy free counseling service (2) Health and medical care: Regular on-site clinics by occupational doctors, health education consultations, and medical treatment services. (3) Legal matters (including debt disputes): Assisting in providing legal resources and legal aid channels. (4) Tax consultation: Assisting in providing consultation channels with government agencies. 2. Conducting various activities in work, health, and life with employees in mind, balancing their physical and mental development. \| \| Pre-approval for special leaves \| Employees are entitled to 10 days of special leave in their first year on the job. \| \| Flexible working hours \| Employees are given consideration for their hard work during business trips and may be given adequate rest. Employees who travel for extended hours are given the option of staying at local accommodation, or they will be granted the flexibility to come back to work the next day at their work/place of residence. \| \| Insurance protection \| Conforming to labor and health insurance and labor pension appropriation, as well as fully subsidized group insurance, and extra protection for employees and dependents. \| \| Nursing subsidy \| 1. Wedding Gift: To celebrate the weddings of colleagues, wedding gifts ranging from NT$6,000 to NT$42,000 are provided based on job grade and seniority. In 2025, a total of 67 employees received this gift, amounting to approximately NT$1.1 million. 2. Childcare Subsidy: To encourage employees to have children, a childcare subsidy of NT$180,000 per child is provided over three years. During the subsidy period, if an employee needs to apply for parental leave without pay, the already received subsidy does not need to be returned, and the subsidy can be continued upon return to work. In 2025, 87 new "HIWIN babies" benefited from the childcare subsidy, bringing the cumulative total since the system's implementation in 2013 to the end of 2025. A total of 1,653 employees have received the childcare subsidy, fully demonstrating the company's support for employees' families and its commitment to social responsibility. \| \| Family care \| 1. Parenting leave can be used to attend children's school activities, enhancing parent-child relationships. A total of 10 people applied in 2025. 2. Dedicated parking spaces are provided for pregnant women, and professional nursing staff at each plant provide prenatal health care. Each plant also has a breastfeeding room. \| \| Benefit subsidies \| 1. Three Festival Gift Certificates: Electronic gift certificates will be issued to express blessings during the Lunar New Year, Dragon Boat Festival, and Mid-Autumn Festival. 2. Departmental Meal Subsidy: Three departmental meal subsidies will be provided annually to promote communication and team cohesion among employees. 3. Birthday Bonus: A birthday bonus of NT$600 will be given to employees in their birthday month, along with an electronic birthday card. 4. Travel Subsidy: To encourage employees to participate in travel and exchange activities, a travel subsidy of NT$2,000 per person will be provided in 2025 to enhance team spirit and cohesion. 5. Cultural and Recreational Subsidy: An annual cultural and recreational subsidy of NT$600 will be provided to support employees in participating in cultural and recreational activities to enrich their lives. 6. Hiking Subsidy: A hiking subsidy of NT$1,000 per year will be provided to encourage employees to hike with family and colleagues, promoting emotional exchange. 7. Hospital Visit Allowance: A hospital visit allowance of NT$1,000 is provided for colleagues to purchase gifts when visiting colleagues who are hospitalized \| --- \| Item \| Description \| \| --- \| --- \| \| \| or recuperating due to injury or illness, as a gesture of care.8. Emergency Condolence Fund: A condolence fund of NT$6,000 to NT$10,000 is provided for colleagues suffering from serious illness or accidents to help them through difficult times.9. Funeral Allowance: In the unfortunate event of the passing of a colleague or their family member, a funeral allowance of NT$3,100 to NT$88,000 will be provided based on rank and seniority to express condolences. \| \| Meal subsidy \| Each plant has its own cafeteria and provides employees with meal subsidies, free overtime meals and refreshments. \| \| Safety protection \| Provide subsidies for the purchase of assistive devices and safety shoes for work safely with peace of mind. \| \| Employee dormitory \| As a consideration of the accommodation costs and safety issues for non-local employees, we provide affordable employee dormitories with 24-hour security guards, regular disaster prevention drills, equipped with AED equipment, and implement the dormitory's care, so that employees can live in peace of mind. \| \| Health protection \| The Company provides annual health examination subsidies. Each plant is equipped with a medical room, stationed occupational nurses, and regularly stationed occupational physicians in the plants to provide professional consultation services. \| \| Club activities \| Encourage employees to establish and participate in clubs and activities, to promote employee health and community communication, and strengthen mutual relationship. \| \| Public welfare activities \| The HIWIN volunteer group encourages employees to participate in charity services, education volunteers, and charity sales for a long time. \| \| Others \| Stress-relieving massages, occasional gifting of books and tickets for cultural activities, various ball games, photography competitions, year-end banquets, annual family day. \| (2) Subsidiary > Employee benefit measures are implemented in accordance with local laws and regulations and labor market conditions, and performance bonuses are paid based on the operating conditions of each subsidiary. 2. Continuing education and training: (1) Taiwan Headquarters > Excellent human resources are the cornerstone of an enterprise's sustainable operations. In order to improve the ability and quality of employees and maintain long-term competitive advantages, the Company's Chairman, President, and first-level senior executives have all served as internal lecturers. In the past five years, the average annual expenditure of thousands of dollars Allocate at least NT$2,000 per employee each year for employee education and training to ensure that every employee has the opportunity to receive training. > The Company's training programs include: newcomer training, core functional training, professional functional training, management functional training, and external training. Employees receive appropriate training via the classroom, digital training, on-the-job training, external training, study club, oratory training, exhibition visits, degree programs, job rotation, and project assignments. The training content and methods are diverse and extensive. > The Company provides tuition reimbursement programs for employees interested in continuing education to get degrees. The Company has also collaborated with schools to offer two-year college programs for employees who wish to continue their education. (2) Subsidiary > Each subsidiary provides training for new employees, training and professionalism, and provides continuing education opportunities to employees depending on the status of each subsidiary. 3. Retirement system: HIWIN Technologies has a sound financial system, establishing employee retirement procedures in accordance with the Labor Standards Act and the Labor Retirement Fund Act, and allocating stable retirement funds and benefits. The company also commissions actuaries to provide regular retirement fund reports to confirm retirement fund balances and ensure employees' future retirement rights. --- The company has established a defined benefits retirement system in accordance with the Labor Standards Act and set up a "Labor Retirement Reserve Oversight Committee" to oversee and manage related funds. Simultaneously, it has implemented a new system for defined retirement contribution plans in accordance with the Labor Retirement Fund Act. The Oversight Committee holds regular meetings to review the implementation of the system and fund operations, ensuring that retirement fund management processes comply with legal requirements and maintain transparency. Regarding retirement fund reserves, the company sets aside retirement reserves as required by law and commissions professional actuarial firms to regularly perform actuarial work on the defined benefits system to comply with the disclosure requirements for listed companies' financial reporting and to confirm the adequacy of retirement fund liabilities and contribution levels. The relevant contribution amounts and ratios will be disclosed in the financial statements. For employees who are transferred to related companies due to organizational adjustments, their years of service are combined to provide employees with multiple protections so that they can work with peace of mind in the company and achieve the purpose of talent circulation in the group. The retirement regulations are as follows: (1) Those who have worked for the company for a certain number of years and meet any of the following conditions may apply for retirement. ① Those who have worked for the company for more than 15 years and are 55 years old or older. ② Those who have worked for the company for more than 25 years. ③ Those who have worked for the company for more than 10 years and are 50 years old or older. (2) Employees who have worked for more than 10 years and meet any of the following conditions will be granted retirement upon review and approval by the company. ① Those who are injured for reasons other than work. ② Those who suffer from long-term or chronic diseases. ③ Those who are 55 years of age or older and have serious health problems or family problems. (3) Retirement system and implementation: > Taiwan Headquarters \| Retirement system: \| Old System \| New system \| \| --- \| --- \| --- \| \| Applicable law \| Labor Standards Act \| Labor Pension Act \| \| Contribution method \| 2% of the total monthly salary of the employees is contributed, and deposited in the Bank of Taiwan in the name of the Company \| 6% is contributed based on the employee's insurance level into the personal account at the Bureau of Labor Insurance \| \| Amount of contribution \| The accumulated pension fund for labor as of the end of December 2025 was NT$245,891 thousand. \| NT$164,251 thousand was contributed as pension under the new system pension in 2025. \| Subsidiaries implements such in accordance with local laws and regulations. 4. Agreements between employers and employees, and measures to protect the rights and interests of employees > HIWIN always attaches great importance to employee welfare, and adopts a two-way communication and coordination method for labor-management issues. Regular labor meetings are held to coordinate labor relations and to discuss matters such as the promotion of labor-management cooperation, working conditions, and planning of labor welfare. As a result, labor-management relations have been harmonious since the plant's inception, without labor dispute occurring until now. In addition to purchasing group insurance, the Company also organizes environmental, safety and health seminars and occupational safety and health courses from time to time, and publishes environmental, safety and health e-newsletters on a regular basis to ensure the personal safety of employees and to take appropriate measures in case of emergencies. 5. Employee opinion survey (1) Employee Engagement Survey: To understand employees' level of commitment to company management and various work issues, HIWIN Technologies has conducted an "Employee Engagement Survey" every two years since 2023. The results are used to review and improve management practices, --- aiming to create a harmonious workplace and enhance team cohesion. Starting in 2026, the survey will be conducted annually. The 2025 Employee Engagement Survey will increase from 20 to 30 questions to improve the accuracy of the results. The questions are based on the company's business philosophy and include aspects such as company brand, professional standards, work enthusiasm, work ethics, continuous innovation, and sustainable development. The questionnaire completion rate was 72%, and the overall engagement score was 84.7. The question "I am willing to dedicate myself fully to my work and do it better," which best demonstrates employees' commitment to organizational goals and sustained dedication, achieved an engagement score of 89.7. The survey score is calculated based on the percentage of respondents who selected "Agree" and "Strongly Agree" on a five-point scale. Improvement Plan - Care Interviews: HIWIN Technologies values employee feedback and conducts regular and ad-hoc care interviews annually to understand employee thoughts and provide suggestions, thereby enhancing effective communication between employers and employees. Interviewees include key personnel and employees eligible for retirement. In 2025, a total of 27 key personnel and 7 employees eligible for retirement were interviewed, with positive results. (2) Employee Satisfaction Survey: In 2025, an employee satisfaction survey will be conducted on the company's internal employees' meals and accommodation to show concern for the quality of employee group meals and employees' dormitories. The survey results and feedback will also be used to communicate with the group meal vendors and dormitory management companies to improve the situation, so as to create a more suitable living environment and allow employees to live and work in peace and contentment. \| Object \| Dining colleagues \| Accommodation colleagues \| \| --- \| --- \| --- \| \| Topic \| Meal quality, meal menu, group meal taste, special meals \| Service quality, equipment availability, public space, dormitory environment \| \| Average number of respondents \| 4,507 people \| 1,183 people \| \| Average coverage \| 86.97% \| 78.91% \| \| Survey frequency \| every quarter \| every quarter \| \| Investigation period \| 2025/1~2025/12 \| 2025/1~2025/12 \| \| Average satisfaction \| 69.23% \| 79.84% \| \| Survey Results \| The 2025 food satisfaction survey result was 67.5%, an increase of 1.73% compared to the 2024 survey result. \| The 2025 accommodation satisfaction survey result was 79.0%, an increase of 0.84% compared to the 2024 survey result. \| \| Improvement plan \| 1. Based on the feedback from colleagues surveyed, address and review appropriate issues, continuously communicate and coordinate with catering vendors to adjust menu items and improve dining quality, providing colleagues with a better dining environment. 2. Conduct ongoing surveys and communication for improvement every quarter. \| 1. Based on the feedback from colleagues, address and review appropriate issues, continuously communicate and coordinate with dormitory management providers, adjust dormitory management methods, improve service quality, and implement various improvement plans to provide colleagues with a better living environment. 2. Conduct continuous surveys and communication for improvement every quarter. \| (II) List any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to labor disputes As of the publication date of the annual report, the Group's employees and employers get along harmoniously, and there is no significant loss due to labor disputes. VI. Cyber security management Information security is one of the key risk issues for the company's operations and sustainable development. To ensure the confidentiality, integrity, and availability of information assets, the company has consistently invested in information security governance and management. Through multifaceted measures including system establishment, organizational operation, technical protection, and personnel training, the company reduces potential information security risks to meet regulatory requirements and stakeholder expectations. The company has implemented ISO 27001:2022 international information security management system certification (certification period: March 31, 2023 to March 30, 2026/ --- March 31, 2026 to March 30, 2029) and continues to refine its information security management mechanisms in accordance with relevant standards. (I) Information Security Risk Management Framework, Information Security Policies, and Specific Management Solutions: The company has formulated and published "Information Security Objectives and Policies" to construct a comprehensive information security governance framework. Information security management is implemented from the board level downwards to ensure consistency between information security decisions and operational strategies, and to properly address the concerns of relevant domestic and international regulations and stakeholders. The company officially established the position of Chief Cybersecurity Officer in 2025 to oversee the planning, risk monitoring, and management of information security systems. The Board of Directors has also established a "Sustainability and Cybersecurity Committee" to oversee the company's information security policies, major cybersecurity risks, resource allocation, and the tracking of information security management performance, thereby strengthening the Board's governance function on cybersecurity issues. At the implementation level, the Sustainability and Cybersecurity Committee has established a "Cybersecurity Executive Committee," chaired by the Chief Cybersecurity Officer. This cross-departmental working group, composed of relevant business managers, is responsible for promoting and implementing cybersecurity policies, including cybersecurity risk assessment, vulnerability management, cybersecurity incident response, deployment of technical protection measures, cross-departmental collaboration, and improvement of cybersecurity maturity. The group regularly reports on the implementation status. (II) Enhancing Cybersecurity Awareness: The company values the establishment of an information security culture. Through continuous education, training, and promotional activities, it enhances the cybersecurity awareness of all employees, making information security a crucial part of daily operations. Key practices include: New employee onboarding training incorporates cybersecurity awareness as a mandatory component, ensuring employees develop a correct cybersecurity mindset from the outset. Cybersecurity awareness messages are disseminated through attendance tracking devices (KIOSK) in various work areas to reinforce daily cybersecurity reminders. A system login prompt mechanism requires users to read information protection and system usage guidelines upon login. A violation handling mechanism has been established to appropriately handle violations of cybersecurity policies or information protection regulations, based on the severity of the offense. (III) Key Cybersecurity Control Measures: Following its information security management system, the company has formulated and implemented multiple cybersecurity control measures from governance, technology, response, and education perspectives to strengthen overall protection capabilities. ![img-0.jpeg](img-0.jpeg) --- # (IV) Quantitative Data on Resources Invested in Information Security Management Our company continues to promote information security management. The results of our work in 2025 are detailed in the table below: ![img-1.jpeg](img-1.jpeg) # (V) Continuous Improvement of Application System Security: Given that most of the company's core information systems are self-developed, the company continuously promotes the optimization of application security functions. In 2025, focusing on eight key areas—identity verification and tracking, access control, technical risk mitigation, software development security, data security, physical file protection, verification mechanisms, and system integration—a total of 243 application system security improvements were implemented. # (VI) Security Threat Response Measures: To address major security threats such as ransomware, email attacks, and cloud environment configuration risks, the company has established multi-layered protection and monitoring mechanisms, including email filtering, network access control, social engineering drills, endpoint protection, vulnerability scanning, backup and recovery mechanisms, and 24/7 threat detection and response (MDR) services to reduce potential operational impact. As systems are gradually deployed to public cloud environments, the company also continues to strengthen cloud account and access management, reducing security risks arising from configuration errors through measures such as permission minimization, multi-factor authentication, and configuration review. To strengthen our threat intelligence capabilities and enhance our cybersecurity resilience, we have joined the Taiwan Computer Network Crisis Management and Coordination Center (TWCERT/CC) intelligence-sharing mechanism, regularly receiving and utilizing the latest threat warning information to improve our early detection and response capabilities for cybersecurity incidents. Furthermore, we are a member of the Taiwan Chief Information Security Officer Alliance, leveraging this cross-industry exchange platform to absorb the latest domestic cybersecurity governance practices, threat trends, and protection strategies, thereby strengthening our overall cybersecurity governance maturity. # (VII)Cybersecurity Incident Management: HIWIN Technologies has established a cybersecurity incident reporting and handling process and announced it to all employees for compliance. In addition to regularly reviewing cybersecurity policies, the company reports the results of its cybersecurity implementation to the Board of Directors annually and at least once a year. On November 11, 2025, HIWIN Technologies reported to the Board of Directors that no major cybersecurity incidents occurred in 2025 or up to the date of publication of the annual report. --- # VII. Important contracts March 31, 2026 \| Nature of contract \| Parties \| Beginning and end dates of contract \| Main content \| Restrictive terms \| \| --- \| --- \| --- \| --- \| --- \| \| Factory/Land Lease Contract \| Yunlin Technology-based Industrial Park Service Center, MOEA \| 2016.12.19-2036.12.18 \| Land leasing \| None \| \| \| Xin Zhi Sheng Co., Ltd \| 2024.01.01-2028.12.31 \| Plant leasing \| None \| \| \| UDIFA Co., Ltd. \| 2024.01.01-2026.12.31 \| Plant leasing \| None \| \| \| WENG CHI MACHINERY CO., LTD. \| 2025.07.07-2027.07.06 \| Plant leasing \| None \| \| \| HIWIN MIKROSYSTEM CORP. \| 2024.01.01-2026.12.31 \| Plant leasing \| None \| \| \| \| 2025.01.01-2026.12.31 \| \| \| \| \| \| 2025.12.01-2026.12.31 \| \| \| \| \| \| 2026.01.01-2027.12.31 \| \| \| \| Long-Term Borrowing Contract \| Bank of Taiwan \| 2012.08.22-2027.08.22 \| Secured loan \| None \| \| \| Bank of Taiwan \| 2014.07.21-2029.07.21 \| Secured loan \| None \| \| \| Bank of Taiwan \| 2014.07.30-2029.07.30 \| Secured loan \| None \| \| \| Bank of Taiwan \| 2016.02.04-2031.02.04 \| Secured loan \| None \| \| \| Bank of Taiwan \| 2019.02.21-2034.02.21 \| Secured loan \| None \| \| \| Bank of Taiwan \| 2020.05.06-2027.04.15 \| Secured loan \| None \| \| \| Bank of Taiwan \| 2024.12.25-2034.12.15 \| Secured loan \| None \| \| \| Bank of Taiwan \| 2024.12.30-2031.12.15 \| Secured loan \| None \| \| \| Chang Hwa Bank \| 2020.05.26-2027.05.15 \| Secured loan \| None \| \| \| Chang Hwa Bank \| 2023.03.30-2033.03.30 \| Secured loan \| None \| \| \| Chang Hwa Bank \| 2022.08.04-2038.03.30 \| Secured loan \| None \| \| \| China Export and Import Bank \| 2020.04.30-2027.04.15 \| Secured loan \| None \| \| \| KGI Bank \| 2024.12.16-2026.12.16 \| Credit Loan \| None \| \| \| \| 2024.12.16-2030.10.02 \| Credit Loan \| None \| --- Five. Review and Analysis of Financial Position, Operation Results, and Risks # I. Financial position (I) Financial position comparison and analysis Unit: NT$ thousand \| Year Item \| 2024 \| 2025 \| Difference \| \| \| --- \| --- \| --- \| --- \| --- \| \| \| \| \| Amount \| % \| \| Current assets \| 19,983,435 \| 19,863,891 \| (119,544) \| -0.60% \| \| Funds and investments \| 1,907,424 \| 1,490,015 \| (417,409) \| -21.88% \| \| Property, plant and equipment \| 29,449,620 \| 29,835,615 \| 385,995 \| 1.31% \| \| Other assets \| 3,094,461 \| 2,986,475 \| (107,986) \| -3.49% \| \| Total Assets \| 54,434,940 \| 54,175,996 \| (258,944) \| -0.48% \| \| Current liabilities \| 8,322,036 \| 8,529,746 \| 207,710 \| 2.50% \| \| Long-term liabilities \| 7,562,662 \| 6,712,084 \| (850,578) \| -11.25% \| \| Other liabilities \| 1,476,104 \| 1,460,546 \| (15,558) \| -1.05% \| \| Total liabilities \| 17,360,802 \| 16,702,376 \| (658,426) \| -3.79% \| \| Equity attributable to the shareholders of the parent \| 36,929,047 \| 37,345,766 \| 416,719 \| 1.13% \| \| Share capital \| 3,537,923 \| 3,537,923 \| 0 \| 0.00% \| \| Capital reserves \| 7,479,735 \| 7,479,735 \| 0 \| 0.00% \| \| Retained earnings \| 24,549,016 \| 25,162,811 \| 613,795 \| 2.50% \| \| Other equity \| 1,362,373 \| 1,165,297 \| (197,076) \| -14.47% \| \| Non-controlling equity \| 145,091 \| 127,854 \| (17,237) \| -11.88% \| \| Total equity \| 37,074,138 \| 37,473,620 \| 399,482 \| 1.08% \| Note: Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS), which were audited and certified by the CPAs. (II) Analysis of changes in the percentage of increase or decrease of more than 20%: The decrease in funds and investments was mainly due to the recognition of unrealized losses on financial assets resulting from the decline in the share prices of the invested targets. 109 --- # II. Financial performance ## (I) Comparison and analysis of operating results Unit: NT$ thousand \| Item \| Year \| 2024 \| 2025 \| Increased (decreased) Amount \| Percentage of change (%) \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| Operating income – net \| \| 24,391,684 \| 24,262,638 \| (129,046) \| -0.53% \| \| Operating cost \| \| 17,173,869 \| 17,284,790 \| 110,921 \| 0.65% \| \| Gross profit \| \| 7,217,815 \| 6,977,848 \| (239,967) \| -3.32% \| \| Operating expense \| \| 5,159,030 \| 5,334,619 \| 175,589 \| 3.40% \| \| Operating income \| \| 2,058,785 \| 1,643,229 \| (415,556) \| -20.18% \| \| Non-operating income and expenses \| \| 190,846 \| 120,864 \| (69,982) \| -36.67% \| \| Income before tax \| \| 2,249,631 \| 1,764,093 \| (485,538) \| -21.58% \| \| Income tax expense \| \| 386,817 \| 353,965 \| (32,852) \| -8.49% \| \| Net income for the year \| \| 1,862,814 \| 1,410,128 \| (452,686) \| -24.30% \| \| Other comprehensive income for the period (net amount after tax) \| \| 942,495 \| (171,178) \| (1,113,673) \| -118.16% \| \| Total comprehensive income for the period \| \| 2,805,309 \| 1,238,950 \| (1,566,359) \| -55.84% \| \| Net profit attributable to the shareholders of the parent company \| \| 1,971,948 \| 1,525,866 \| (446,082) \| -22.62% \| \| Net income attributable to non-controlling interests \| \| (109,134) \| (115,738) \| (6,604) \| 6.05% \| \| Total comprehensive income attributable to owners of the parent company \| \| 2,911,229 \| 1,352,899 \| (1,558,330) \| -53.53% \| \| Total comprehensive income attributable to non-controlling interests \| \| (105,920) \| (113,949) \| (8,029) \| 7.58% \| Note: Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS), which were audited and certified by the CPAs. ## (II) Analysis of changes in the percentage of increase or decrease of more than 20%: 1. Decrease in operating profit, pre-tax profit, net profit for the year, and net profit attributable to owners of the parent company mainly due to a decline in sales and gross profit during the period, and an increase in operating expenses. 2. Decrease in non-operating income mainly due to an increase in finance costs and a decrease in exchange gains. 3. Decrease in other comprehensive profit or loss (net after tax), total comprehensive profit or loss for the period, and total comprehensive profit or loss attributable to owners of the parent company mainly due to the recognition of unrealized losses on financial assets resulting from the decline in the share price of invested assets. ## (III) Expected sales volume and basis thereof, possible impact on the Company's future finance and business, and response plan: HIWIN has no public financial forecast. Please refer to the "Letters to Shareholders." --- 111 # III. Cash flow (I) Liquidity analysis for the most recent two years: \| Item \| Year \| 2024 \| 2025 \| Increased (decreased) percentage (%) \| \| --- \| --- \| --- \| --- \| --- \| \| Cash flow rate (%) \| \| 43.48 \| 50.14 \| 15.32 \| \| Cash flow adequacy rate (%) \| \| 131.47 \| 120.35 \| (8.46) \| \| Cash flow reinvestment rate (%) \| \| 5.93 \| 7.51 \| 26.64 \| \| Analysis of 20% increase or decrease: Cash flow reinvestment rate increases mainly due to the increase in net cash inflow from operating activities and the decrease in long-term investments. \| \| \| \| \| Note: Consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) (II) Improvement plan for illiquidity: The Company has no such situation. (III) Cash flow analysis for the coming year: The Company expects that the cash in the coming year and the cash inflow from operating activities should be able to cover the expenditure for investing activities and financing activities, and the cash liquidity in the next year will not be a concern. # IV. Effects of major capital expenditure on financial business of the most recent fiscal year (I) Utilization of material capital expenditures and funding sources Unit: NT$ thousand \| Planned items \| Actual or expected sources of funds \| Actual or expected date of completion \| Total funds required for 2025 and 2026 \| Actual fund utilization in 2025 and expected utilization in 2026 \| \| \| --- \| --- \| --- \| --- \| --- \| --- \| \| \| \| \| \| 2025 \| 2026 \| \| Construction of plant buildings \| Self-owned capital, financing \| 2026.12 \| 1,420,047 \| 880,047 \| 540,000 \| \| Expansion of production equipment \| Self-owned capital, financing \| 2026.12 \| 3,345,739 \| 1,885,739 \| 1,460,000 \| (II) Expected benefits Capital expenditures are mainly for the development of new products and capacity expansion in line with future operational growth. At the same time, the vertical integration of manufacturing processes is carried out to continuously strengthen the competitive advantages of quality improvement, delivery flexibility and cost optimization. # V. Reinvestment policy of the past year, main causes for profits or losses, improvement plan and reinvestment plan for the coming year HIWIN Technologies' investment strategy aims to strengthen the group's comprehensive development in products, processes, key technologies, marketing, and customer service. Through these investments, the group hopes to replicate its successful production and management experience, thereby reducing production costs, providing closer customer service, and accelerating its global expansion. Despite the global economic slowdown, HIWIN is actively expanding its factories and strengthening its localized services both domestically and internationally to accelerate the expansion of new products and markets and provide timely, localized services to customers. Its German subsidiary acquired a subsidiary in the Czech Republic and established a subsidiary in France; its Swiss subsidiary acquired a subsidiary in Bulgaria; and its Singapore subsidiary established HIWIN Malaysia to better serve local customers. By gaining control, managing local operations, and understanding local customer needs, the group aims to leverage its sales channels to achieve synergistic effects and improve overall operational efficiency. HIWIN Technologies' subsidiaries in Germany, the United States, China, Switzerland, and South Korea, as well as its Mega Fabs, are all profitable in fiscal year 2025. The following explains the subsidiaries incurring losses in 2025: The Japanese subsidiary's continued expansion led to increased personnel and --- administrative expenses, which have not yet been reflected in short-term revenue growth. The Singapore subsidiary's new factory opening and increased recruitment to meet customer demand in the Southeast Asian market resulted in increased personnel and administrative expenses, which have not yet been reflected in short-term revenue growth. The Italian subsidiary's operating costs have also increased recently to meet operational growth needs, expand service locations, and increase market share. The new factory is expected to officially open and begin production in 2026. Future expansion will enhance overall production capacity and service coverage, leveraging economies of scale and strengthening overseas operations. Matrix Precision and the Matrix Corp.UK will collaborate on marketing, R&D, and improving processing efficiency and automation to move towards smart manufacturing. In response to the digital wave and ESG net-zero sustainability trends, Matrix Precision has successfully developed multi-functional value-added software such as cylindrical gear software and smart grinding software, transforming and upgrading towards high efficiency, digitalization, and energy conservation and carbon reduction, providing customers with the best smart manufacturing solutions. Through the integration of group resources with electromechanical systems and software upgrades, processing efficiency and automation levels can be improved, customization capabilities can be enhanced, and the added value of gear machine tools can be significantly increased. In other overseas markets where subsidiaries have not yet been established, the Company will also assess, at an appropriate time, whether to establish directly affiliated units in suitable locations to provide immediate support to agents in various regions or directly supply customers. ## VI. Risk analysis and evaluation of the most recent year and up to the publication date of this annual report 1. Risk factors: Analysis and evaluation of the most recent year and up to the publication date of this annual report Effect of changes in interest rates, exchange rates and inflation on the Company's profit and loss, and future countermeasures (1) Interest rate: As of the date of publication of the annual report, the short-term borrowings of HIWIN may be used on a revolving basis within the term of the contract according to the contract. Under the premise of improving the financial structure and reducing the risk of interest rate changes, HIWIN borrowing interest rate and market interest rate are regularly evaluated. HIWIN will also seek better financing interest rates from banks. Therefore, changes in interest rates have no significant impact on HIWIN. (2) Exchange rate: In 2025, the Company's foreign currency revenues will mainly come from RMB, EUR, and USD, while the purchase of raw materials, machinery and equipment will be denominated in USD, EUR, and JPY. HIWIN has implemented the "asset and liability management" for foreign exchange risk management policy for many years, and also uses forward foreign exchange contracts to reduce the exchange rate risk generated by its assets and liabilities. In response to exchange rate risk, HIWIN constantly collects information on exchange rate trends, maintains good interaction with the bank, and takes appropriate measures in a timely manner to avoid exchange rate risks. (3) Inflation: The Directorate-General of Budget, Accounting and Statistics announced that the actual CPI growth rate for 2025 and the forecast for 2026 are 1.66% and 1.68% respectively, remaining below the 2% inflation warning line. The inflation risk has been assessed as being within an acceptable range. HIWIN Technologies continues to reduce various costs and increase profits through raw material inventory management, procurement strategies and process research and innovation, which is sufficient to cope with environmental changes and reduce the impact of inflation on the company. (4) U.S. Tariffs In February 2026, the U.S. Supreme Court ruled that the global reciprocal tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were illegal, rendering the original legal basis for reciprocal tariffs, including the Taiwan-U.S. agreement, invalid. U.S. Customs and Border Protection ceased collecting related taxes from February 24th. This move created uncertainty regarding the agreement, finalized in January 2026, to reduce Taiwan's tariff rate to 15%. Following the expiration of the IEEPA tariffs, the Trump administration immediately imposed a temporary global tariff of 10-15% under Section 112 --- 122 of the Trade Act of 1974; however, this is only valid for 150 days, and whether it will be extended or converted to another legal basis remains highly uncertain. Cause the revenue of the US subsidiary accounts for less than 5% of HIWIN's consolidated revenue., the impact is assessed to be minimal. The Company will continue to monitor subsequent tariff changes and promptly propose countermeasures. In the long term, we will reduce costs through in-house process improvements to mitigate the impact of U.S. tariffs. In conclusion, the assessment indicates that U.S. tariffs will not have a direct and significant impact on HIWIN Technologies. 2. The policy of engaging in high-risk and highly leveraged investments, loans to others, endorsements and guarantees, and derivative transactions, the main reasons for profit or loss, and future countermeasures (1) HIWIN Technology does not engage in high-risk or highly leveraged investment transactions. (2) In 2025, apart from lending funds to subsidiaries to meet their operational needs, the Company did not lend any funds to others. All such lending to others was conducted in accordance with the "Procedures for Lending Funds to Others" and was approved by the Board of Directors. (3) When HIWIN Technologies handles endorsement guarantees, it follows the "Endorsement Guarantee Operating Procedures" and is approved by the board of directors. The balance at the end of 2025 was NT$4,101,553,000, and the actual amount spent was NT$3,035,157,000. This endorsement guarantee can effectively reduce the capital requirement for capital increase of the parent company and is also beneficial for tax planning. (4) HIWIN adopts a prudent and conservative approach in the transaction of derivative financial instruments. The purpose is to hedge, and the actual foreign currency receipts and payments are used as the hedge to avoid the real exchange rate fluctuation risk caused by the purchase and sale of goods. The Company did not engage in speculative operations. 3. Future R&D plans and expected R&D expenses HIWIN Technologies' consolidated R&D expenses for fiscal year 2025 were NT$1,024,660,000, representing 4% of consolidated revenue, an increase of NT$61,298,000 or 6%, compared to year 2024. Moving forward, the company will continue to actively invest in research and development to cultivate long-term growth potential, expanding into new products such as intelligent linear guides and ball screws, Torque Motor rotary tables, and various multi-axis robot specifications. Key R&D projects are listed below: \| Project name \| Current progress \| Important factors for the success of future R&D \| \| --- \| --- \| --- \| \| Development of collision monitoring function for wafer robots \| Under development \| R&D should be completed successfully \| \| New applications and expansions of intelligent linear guideways and ball screws \| Under development \| R&D should be completed successfully \| \| Development of new series of wafer robotic arm/wafer aligner \| Under development \| R&D should be completed successfully \| \| Expansion of submersible turntable specifications \| Under development \| R&D should be completed successfully \| \| Functional expansion of MRG-P110 lower limb rehabilitation robot \| Under development \| R&D should be completed successfully \| The R&D expenses in the 2026 consolidated financial statements are expected to increase by 10%~15% from 2025, and the total R&D expenses are about NT$1,120,000 thousand to NT$1,180,000 thousand; the long-term goal is to make R&D expenses account for 10% of sales and continue to invest R&D will develop towards the trend of smart manufacturing, smart automation, Industry 4.0 and environmental protection, green energy and ESG. While meeting customer needs, we will continue to carry out process integration and internal process re-engineering to reduce costs and expand market competitiveness. 4. The impact of important domestic and foreign policies and legal changes on the Company's finance and business, and the response measures HIWIN is a professional manufacturer of transmission control and system products, which are critical components and necessities for economic development. The business and finance are less affected by changes in domestic and foreign policies or laws. In the most recent year and up to the date of publication of the annual report, there was no change in important domestic and foreign policies and laws that affect the Company's finance and business. The Company's management team pays attention to important domestic and foreign policy and legal changes at all times, fully grasps the status development and responds to changes in the market environment, to reduce possible adverse effects in the future. 113 --- 5. Impacts of technological and industrial changes on the Company's finance and business, and measures to be taken in response In terms of technology and industrial development, generative AI, advanced semiconductor processes and packaging, new energy vehicles, smart automation, and green transformation remain the main growth drivers for global manufacturing. Rapid technological evolution has led to a continuous increase in customer demand for high-precision, high-efficiency, and intelligent key components, driving HIWIN Technologies' investment in high-end product R&D, equipment upgrades, and system integration. Faced with US-China technology competition and supply chain risks, global industries are accelerating regionalization and the localization of key equipment. HIWIN Technologies continues to strengthen its global production capacity and service network, expanding its manufacturing and technical support capabilities in Europe, the US, and Southeast Asia. Through electromechanical integration and overall solutions, it enhances supply flexibility and customer service efficiency. While these investments may increase depreciation and operating costs in the short term, they will help strengthen supply chain resilience and enhance long-term competitiveness. In response to the low-carbon transition and increasingly stringent ESG regulations, HIWIN Technologies continues to promote energy management, low-carbon processes, and sustainable supply chain management. Through R&D innovation, it promotes product intelligence, helping customers improve efficiency and reduce environmental risk costs in applications such as semiconductors, AI robots, new energy vehicles, medical devices, and smart manufacturing, supporting the company's long-term stable operation. Overall, HIWIN will focus on continuous innovation, global expansion, professional services, and sustainable operation to continuously strengthen its competitiveness and pursue excellence and long-term steady growth in a rapidly changing global environment. 6. The impact of changes in corporate image on corporate crisis management and countermeasures HIWIN Technologies has long been committed to sustainable development, public welfare, and education activities, and actively promotes ESG. It has passed the Science-Based Carbon Targets Initiative (SBTi) review and has committed to achieving net-zero emissions by 2050, systematically moving towards this goal (please refer to section III, (V) for details). Over the years, it has received numerous awards, including: the "Cartesian Coordinate Robot - KK Series" winning the 34th Taiwan Excellence Silver Award; being selected for the Dow Jones Best Emerging Markets Index for two consecutive years; the "Asian Corporate Social Responsibility Award" - Circular Economy Leadership Award; and for three consecutive years... The company has been recognized as one of the "Top 100 Carbon Competitiveness Companies" by Business Weekly; it has also received the TCSA Taiwan Corporate Sustainability Award, including the "Top 100 Sustainable Exemplary Companies in Taiwan" and the "Corporate Sustainability Report - Category 1 Platinum Level"; it ranked 14th in the Global Sustainable Citizen Award (Large Manufacturing Group) and was among the Top 100 in the Talent Sustainability Award (Large Manufacturing Group); it has also received the Ministry of Labor's "Healthy Workforce Sustainability Leading Enterprise" Manufacturing Exemplary Award and the "2025 3rd TWBA Taiwan Biodiversity Award," among other accolades. These awards demonstrate the government's and the public's recognition of HIWIN Technologies' positive corporate image. In the event of any situation that threatens or alters the company's corporate image, the company's risk management team will take necessary countermeasures. 7. Expected benefits and possible risks of mergers and acquisitions and countermeasures In the most recent year and up to the date of publication of the annual report, HIWIN Technologies has not conducted any mergers and acquisitions. 8. Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken Regarding the expansion of plant, please refer to the descriptions in Seven. (IV) of this annual report. Over the years, HIWIN Technologies has laid a solid foundation and invested in R&D and process improvement, with rich experience and good results. In addition to continuing to extend the manufacturing process to control the source of raw materials and reduce the cost of material purchase, Therefore, the efficiency of the plant expansion is expected to be significantly higher than the efficiency of the existing plant. Although capital investment is required for plant expansion, new product development not only reduces production costs due to economies of scale, but also completes the Company's product line and provides customers with one-stop shopping for components and subsystems. In addition to increasing production capacity, plant expansion can also reduce product costs and improve gross profit margins. In conclusion, even if there is a temporary reduction in demand under the economic 114 --- cycle, the risk of plant expansion should be limited as HIWIN Technologies has the advantage of mastering key technologies and can flexibly adjust the allocation of production lines and the capacity of each product. 9. Risks associated with any concentration of purchases or sales, and mitigation measures being or to be taken Please refer to Section V, Operational Overview (IV), of this year's report for customers who accounted for more than 10% of total purchases (sales) in either of the two most recent years. In 2025 and 2024, there was no single supplier accounting for more than 10% of total purchases, indicating no concentration of purchases. In 2025 and 2024, the largest customer accounted for 17.6% and 18.8% of total net sales, respectively. Customer A's main customers are in the semiconductor industry. Due to strong demand in the semiconductor industry, sales to them exceeded 10% in both 2025 and 2024. However, due to the downturn in the medical application industry, sales in 2025 decreased compared to 2024. Customer B's growth is mainly driven by customer applications in trending industries such as semiconductors, automation, new energy, and machine tools, leading to sales of screws, linear guides, and various robots. In summary, Customers A and B have a wide distribution of end customers across various industries, and most are large enterprises in their respective sectors. Sales are not concentrated on a single customer, indicating no excessive concentration of sales. Our company closely observes and monitors its business situation, and assesses and adjusts its credit terms as needed. The assessed risk is considered limited. 10. Effect upon and risk to the Company in the event a major quantity of shares belonging to a director or shareholder holding greater than a 10 percent stake in the Company has been transferred or has otherwise exchange, and mitigation measures being or to be taken In the most recent year and up to the date of the publication of the annual report, there was no significant transfer or exchange of the shares of directors and major shareholders of the Bank. 11. Effect upon and risk to the Company due to change in management, and countermeasures In the most recent year and as of the date of publication of the annual report, there has been no change in the management of HIWIN Technologies. 12. Litigation and non-litigation events In the most recent year and up to the date of publication of the annual report, there was no litigation and non-litigation incidents with HIWIN Technology. 13. Other important risks and countermeasures In the most recent year and up to the date of publication of the annual report, there was no other major risk with HIWIN Technology. VII. Other important matters : None. 115 --- 116 # Six. Special Items I. Information related to the company's affiliates The three-part form of our related companies has been uploaded to the Public Information Observation Station. Please refer to the "Related Company Three-Part Form" section on the Public Information Observation Station for details. Path: Public Information Observation Station/Single Company/Electronic Document Download/Related Company Three-Part Form Section Website: https://mopsov.twse.com.tw/mops/web/t57sb01_q10 II. Private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None. III. Other matters that require additional description: None. IV. If any of the situations listed in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None.

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HIWIN Annual Report 2025

51962_rns_2026-05-11_73fa55c4-0e80-4226-9f15-be15c66d2ae1.pdf

2025 Annual Report

Table of Content

Two. Corporate Governance Report

Three. Fundraising

Four. Operation Overview

Five. Review and Analysis of Financial Position, Operation Results, and Risks

I. 2025 Business Report

(I) Results of business plan implementation

(II) Analysis of financial income, expenditure and profitability

(III)R&D Status

II. 2026 business plan overview

(I) Business guidelines

(II) Expected sales quantities and reference

(III) Important production and sales policies

(IV) Further development strategy of the Company

Two. Corporate Governance Report

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

(I) Information on directors

(2) Diversity and Independence of the Bord of Directors:

II. Remuneration paid during the most recent fiscal year to directors, the general manager, and assistant general managers

(I) Remuneration of Directors and Independent Directors

III. The state of the Company's implementation of corporate governance

(I) Operation of BOD

(II) The operation of the Audit and Risk Management Committee:

(IV) Respect the rights and interests of Stakeholders:

(V) Enhance corporate governance and protect investors' rights and interests

(VI) Directors' participation in related course regarding corporate governance and laws of the Company in 2025 are listed below:

(IV) Composition, Responsibilities and Operation of the Remuneration Committee and Nomination Committee:

(2) The duties of a Remuneration and Nomination Committee

(3) When exercising its powers, the Remuneration and Nomination Committee shall adhere to the following standards:

(4) Status of the Remuneration and Nomination Committee:

7. Net-Zero Commitment of HIWIN

8. HIWIN Technologies demonstrates excellent ESG performance

AI assistant

HIWIN — Annual Report 2025

51962_rns_2026-05-11_73fa55c4-0e80-4226-9f15-be15c66d2ae1.pdf

2025 Annual Report

Table of Content

Two. Corporate Governance Report

Three. Fundraising

Four. Operation Overview

Five. Review and Analysis of Financial Position, Operation Results, and Risks

I. 2025 Business Report

(I) Results of business plan implementation

(II) Analysis of financial income, expenditure and profitability

(III)R&D Status

II. 2026 business plan overview

(I) Business guidelines

(II) Expected sales quantities and reference

(III) Important production and sales policies

(IV) Further development strategy of the Company

Two. Corporate Governance Report

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

(I) Information on directors

(2) Diversity and Independence of the Bord of Directors:

II. Remuneration paid during the most recent fiscal year to directors, the general manager, and assistant general managers

(I) Remuneration of Directors and Independent Directors

III. The state of the Company's implementation of corporate governance

(I) Operation of BOD

(II) The operation of the Audit and Risk Management Committee:

(IV) Respect the rights and interests of Stakeholders:

(V) Enhance corporate governance and protect investors' rights and interests

(VI) Directors' participation in related course regarding corporate governance and laws of the Company in 2025 are listed below:

(IV) Composition, Responsibilities and Operation of the Remuneration Committee and Nomination Committee:

(2) The duties of a Remuneration and Nomination Committee

(3) When exercising its powers, the Remuneration and Nomination Committee shall adhere to the following standards:

(4) Status of the Remuneration and Nomination Committee:

7. Net-Zero Commitment of HIWIN

8. HIWIN Technologies demonstrates excellent ESG performance

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HIWIN Annual Report 2025