Stock Code: 3481

Innolux Corporation 2025 Annual Report

Notice to readers

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

Taiwan Stock Exchange Market Observation Post System: https://mops.twse.com.tw
Innolux Corporation Annual Report is available at: https://www.innolux.com/tw/
Printed on March 31, 2026

Spokesperson & Acting Spokesperson information

Spokesperson	Acting Spokesperson
Name: Jin-Yang Hung	Name: Tsz-Shan Chen
Title: Chairman and CEO	Title: Manager
Tel: +886-37-586000	Tel: +886-37-586000
E-mail: [email protected]	E-mail: [email protected]

Headquarters, Branches and Plants

Headquarter: No.160, Kexue Rd., Zhunan Township, Miaoli County, Hsinchu Science Park	Tel: +886 37 586 000
Branch: No.21 Zilian Rd., Fenghuali, Xinshi District, Tainan City	Tel: +886 6 588 9998
Plants
Branch: Building B, No.21 Zilian Rd. and No.9 Titanggang Rd., Fenghuali, Xinshi District, Tainan City	Tel: +886 6 588 9998
Fab T1: No.160, Kexue Rd., Zhunan Township, Miaoli County, Hsinchu Science Park	Tel: +886 37 586 000
Fab T2: No.168, Kexue Rd., Zhunan Township, Miaoli County, Hsinchu Science Park	Tel: +886 37 586 000
Fab T3: No. 12, Kejung Rd., Zhunan Township, Miaoli County, Hsinchu Science Park	Tel: +886 37 586 393
Fab A: No.1, Qiye Rd., Xinshi Dist., Tainan City, Southern Taiwan Science Park (excluding Rooms A)	Tel: +886 6 505 1881
Fab B: Room A, No.2, Sect. 2, Huansi Rd., Xinshi Dist., Tainan City, Southern Taiwan Science Park (excluding Room B)	Tel: +886 6 505 1889
Fab C: No.12, Nanke 8th Rd., Shanhua Dist., Tainan City, Southern Taiwan Science Park (excluding Rooms A&B)	Tel: +886 6 505 1880
Fab D: No.3, Sect. 1, Huansi Rd., Xinshi Dist., Tainan City, Southern Taiwan Science Park (excluding Rooms A&B&C)	Tel: +886 6 505 1888
Fab F: No.11, Luke 10th Rd., Kaohsiung City, Southern Taiwan Science Park (excluding Rooms B&7FA)	Tel: +886 7 627 8888
Fab T6: Room B, No.11, Luke 10th Rd., Kaohsiung City, Southern Taiwan Science Park	Tel: +886 7 627 8888
Touch Module Fab: Room B, No. 12, Nanke 8th Rd., Shanhua Dist., Tainan City, Southern Taiwan Science Park	Tel: +886 6 505 1880
FOPLP Fab: Rooms A, No.1, Qiye Rd., Xinshi Dist., Tainan City, Southern Taiwan Science Park	Tel: +886 6 505 1881

Stock Transfer Agent

Grand Fortune Securities, Registrar & Transfer Department
Address: 6th Floor, No.6, Sec. 1 Zhongxiao W Rd., Zhongzheng Dist., Taipei City 10041, Taiwan
Website: http://www.gfortune.com.tw
Tel: +886-2-2371-1658

Auditors

PricewaterhouseCoopers
Auditors: Sheng-Chung Hsu, Liang-Hua Ling
Address: 27th Floor, 333 Keelung Rd, Sec. 1, Taipei, Taiwan
Website: http://www.pwc.tw
Tel: +886-2-2729-6666

Overseas Securities Exchange: N/A.

Corporate Website: https://www.innolux.com/tw/

I. Letter to Shareholders ... 1

II. Corporate Governance Report ... 9
2.1 Directors and Management Team ... 9
2.2 Remuneration of Directors, President, and Vice President ... 24
2.3 Implementation of Corporate Governance ... 29
2.4 Disclosure of CPA Fees ... 78
2.5 Replacement of CPA ... 78
2.6 The Company’s Managerial Officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its CPA or at an affiliated enterprise ... 78
2.7 Changes in Shareholding of Directors, Managerial Officers and Major Shareholders ... 78
2.8 Relationship among the Top 10 shareholders ... 79
2.9 The total number of shares and total equity stake held in any single enterprise by the Company, its Directors, Managerial Officers, and any companies controlled either directly or indirectly by the Company ... 80

III. Capital Overview ... 82
3.1 Capital and Shares ... 82
3.2 Bonds ... 87
3.3 Preferred Shares ... 87
3.4 Global Depositary Receipts ... 87
3.5 Employee Stock Options ... 87
3.6 New Restricted Employee Shares ... 88
3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions ... 88
3.8 Financing Plans and Implementation ... 88

IV. Operational Highlights ... 89
4.1 Business Activities ... 89
4.2 Market and Sales Overview ... 103
4.3 Human Resources ... 110
4.4 Environmental Protection Expenditures ... 110
4.5 Labor Relations ... 110
4.6 Cyber Security Management ... 120
4.7 Important Contracts ... 125

V. Review of Financial Conditions, Operating Results, and Risk Management ... 126
5.1 Analysis of Financial Positions ... 126
5.2 Analysis of Financial Performance ... 127
5.3 Analysis of Cash Flow ... 127
5.4 Effect upon Financial Operations of Major Capital Expenditures ... 128
5.5 Reinvestment Policy and its Main Reasons for Profits/Losses, Plans for Improving Reinvestment Profitability and the Investment Plans for the Coming Year ... 128
5.6 Analysis of Risk Management ... 129
5.7 Other Important Matters ... 132

VI. Special Disclosures ... 133
8.1 Summary of Affiliated Companies ... 133
8.2 Private Placement Securities in the Most Recent Years ... 133
8.3 Other Matters Required Additional Description ... 133

VII. Materially might affect shareholders’ equity or the price of the Company’s securities, has occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, such situations shall be listed one by one ... 133

I. Letter to Shareholders

1.1 Report on operating results for 2025

Looking back on 2025, the global political and economic landscape underwent a reshaping amid severe turbulence. Although the high-interest-rate environment has gradually eased, the shifting geopolitical landscape, the restructuring of trade barriers, and the technological explosion of generative AI moving from the cloud to edge devices have woven together to create a year full of challenges and opportunities. This year also marks the starting point of the second six years of the Company's "666 Planning Blueprint "overcome difficulties, transform business model, and expand businesses." The Company demonstrated exceptional resilience and adaptability, steadfastly adhered to the core philosophy of "More than Panel", and progressively implemented a strategy to transform business model and optimize our product portfolio by shifting toward high-margin products. In addition to continuing organizational optimization and resource realignment within our core display business, we have expanded niche products into AI application fields. In the non-display sector, we have deepened the role of our subsidiary CarUX as a Tier 1 automotive supplier, completed the acquisition of Pioneer Corporation, and are advancing toward the goal of building a comprehensive smart cockpit integration platform to meet the evolving and diverse needs of global automakers and consumers.

To strengthen our corporate foundation, we are committed to creating multi-engine growth momentum. In terms of product strategy, the Company is extending its technological reach into diverse application fields. In addition to continuing to deepen its presence in the automotive, smart healthcare, and fan-out panel level packaging (FOPLP) sectors, we are actively increasing investment in specialized applications, targeting high-value-added niche markets, including marine displays with high weather resistance and reliability, as well as public information display (PID). Through these cross-sector applications, the Company aims to mitigate the risks associated with reliance on a single industry cycle, enhance its overall competitiveness, and maximize corporate value. Since launching its transformation plan in 2018, the Company has achieved an annualized total shareholder return (TSR) of 10.2% through 2025, a significant increase from the previous year (6.5%). This performance leads the same industry globally and has widened the gap with competitors, reflecting the market's strong endorsement of the Company's transformation.

Looking ahead to 2026, the global economic landscape is expected to remain uncertain, influenced by multiple factors including technological transformation, environmental sustainability issues, geopolitical tensions, and demographic shifts. Facing an environment where challenges and opportunities coexist, the Company will maintain a prudent and pragmatic approach while responding flexibly to market dynamics. We will continue to drive hardware and software integration, deepen partnerships with strategic partners, and strive to optimize the efficiency of existing assets. Our goal is to maintain stable operations amid a volatile economic environment and continuously build long-term competitiveness.

1.1.1 Results of Business Plan Implementation

For 2025, the Company consolidated sales revenue was N226,724,264 thousand, up NT$ 10,214,345 thousand, or 4.72%, compared with 2024 (consolidated net sales revenue for 2024 was NT$ 216,509,919 thousand). For 2025, the net profit attributable to owners of the parent was NT$ 249,764 thousand, and the earnings per share was NT$ 0.03.

1.1.2 Results of Budget Execution

No financial forecast has been disclosed for 2025, therefore there is no need to disclose budget execution.

1.1.3 Analysis of Financial Income and Expenditure and Profitability

Items		2024	2025
Financial structure (%)	Debts to assets ratio	34.78	41.85
	Ratio of long-term capital to property, plant, and equipment	199.49	220.34
Solvency	Current ratio (%)	157.71	143.03
	Quick ratio (%)	110.11	102.19
	Time interest earned (times)	8.22	1.31
Profitability	Return on total assets (%)	2.13	0.39
	Return on equity (%)	2.91	0.29
	Operating profits as a percentage of paid-in capital (%)	(9.91)	(5.21)
	Net profits before tax as a percentage of paid-in capital (%)	10.30	0.37
	Net profit margin (%)	3.11	0.29
	Earnings per share (NT$)	0.76	0.03

1.1.4 Status of Research and Development

As a core medium of modern technology, display technology is accelerating its convergence with semiconductor and Internet of Things (IoT) technologies. Leveraging our global leadership in glass-substrate semiconductor processes (TFT), the Company continues to refine hardware performance and actively expand into forward-looking fields such as MiniLED, MicroLED, and fan-out panel level packaging (FOPLP). Through technological iteration and production capacity optimization, we have not only strengthened our market competitiveness but also laid a solid foundation for industry innovation.

In response to the rapid advancements in AI and communication technologies, we are committed to the deep integration of software and hardware. In addition to utilizing algorithms to optimize image processing and automation technologies, we have extended this expertise to the medical display sector, and developed high-precision integrated hardware-software solutions to enhance the efficiency and quality of image interpretation. We aim to inject strong momentum into industrial upgrading and economic transformation through cross-domain technological convergence in the 5G/6G era.

CarUX, our subsidiary, is dedicated to breaking through the constraints of traditional displays by integrating AI technology to create smart cockpits that connect digital lifestyles. Leveraging our deep technical expertise, we seamlessly integrate infotainment systems into vehicle design, providing comprehensive solutions that balance safety and functionality. We are a smart mobile systems integrator with deep technical expertise.

The Company has also achieved significant progress in multiple fields, making excellent development and achievement. Outstanding achievements in various fields are as follows:

1. Advanced semiconductor packaging

Our plan to transform into an advanced semiconductor packaging and testing company has been recognized by our customers, with mass shipments commencing in 2025. Both shipment volume and yield rates have gained high customer satisfaction. In addition to proving our determination to transform, and being recognized by our semiconductor customers, we will also be able to contribute to Taiwan's leadership in semiconductor and advanced packaging technology. Chip First technology for Fan-Out Panel Level Package (FOPLP) can help customers to reduce die size and cost significantly, maintain high I/O pin count, and reduce overall package thickness to meet the increasingly stringent thickness requirements of cell phones and mobile devices, which is very suitable for applications such as NFC Controller, Audio Codec, PMIC, and Connectivity communication chips. In addition, Chip First technology has also developed thick copper lead technology, which is suitable for application in chips with high voltage, high current, and high heat dissipation requirements. After the Company developed multi-die heterogeneous integrated packaging technology, it was also recognized by automotive semiconductor manufacturers and power management customers for SPS (Smart Power Stage) applications in AI servers, who appointed the Company to develop the its newly-designed Class III semiconductor multi-die high-power power management IC, and plan for a series of product introduction programs. In the meantime, our unique embedded packaging technology using insulating materials with low

dielectric coefficient (Dk) and low dissipation factor (Df) has attracted high interest from international microwave chip customers, who have initiated a series of design parameter validation to develop their next-generation microwave chips, including not only automotive radar applications, but also future gesture control chips.

In addition, the Company’s Advanced Packaging Business Center has also developed a unique multi-point final testing, which can test 16 to 32 chips at a time, greatly improving the testing efficiency and helping customers to reduce the cost of testing; mass production has already officially commenced.

In terms of RDL first technology, we have the advantage of large square substrate. In addition to the higher area utilization ratio of square substrate compared to 12-inch wafer, AI application chips are designed with larger and larger chip area to enhance the computational power of iterative product, and 12-inch wafers can no longer be produced efficiently, instead, the large Fan-Out Panel Level Package (FOPLP) technology must be adopted. The Company has been working on this technology for a long time, and ranks top in this advanced packaging market trend. The Company is also actively deploying RDL interposer, an advanced packaging technology applied to large-size chips, and have been favored by large-scale packaging customers. We have launched a technology validation program to meet the market demand for large-size AI/HPC chips within one to two years. By then, we will have sufficient large-size substrate capacity to help our customers expand their markets quickly, reduce capital expenditures, or achieve greater capital efficiency, and we will have a chance to rapidly meet the huge AI chip business. In addition to the market demand for large chips, the demand for thin SIP (System-in-Package, which integrates multiple functional chips into one package) is also rising rapidly. In addition to the demand for mobile phones, there is a high demand for thin communication chips in mobile devices such as smartwatches, AR glasses, Bluetooth headsets. Our RDL substrates are crucial in assisting customers with thinning solutions. In addition to achieving the thickness required by customers, the production efficiency of large RDL substrates can satisfy customers’ goals within a certain cost budget.

In the substrate sector, as demands for artificial intelligence and high computing power continue to rise, advanced packaging is rapidly evolving toward large-sized chips and large-area packaging. The flatness, dimensional stability, and structural reliability of IC substrates have become critical factors affecting packaging yield and system performance. However, as packaging scales up, traditional organic substrates face challenges such as difficulty in controlling warpage and the inability to balance thickness with process precision. Furthermore, the significant disparity in thermal expansion coefficients between the substrate and the chip significantly increases the risk of chip cracking and reliability issues under high-power and thermal cycling conditions, making it difficult to meet the demands of next-generation advanced packaging

Against this backdrop, glass substrates (TGV Glass Core Substrates) have emerged as a major development direction for advanced packaging. Leveraging the inherent properties of glass—low thermal expansion, high flatness, and high mechanical strength—these substrates effectively support large-size packaging and finer line width and spacing designs. This enhances overall interconnection density and computing power performance, laying a critical foundation for the long-term mass production of advanced packaging in high-performance, high-reliability applications.

Our key advantage lies in our early strategic positioning in the TGV field, built upon years of experience in fabricating semiconductor devices and circuits on glass, coupled with collaborative technology development with leading global customers. This integrated strength enables us to rapidly advance technology development and mass production implementation, establishing a clear competitive edge in the TGV field.

Innovation of vehicle-mounted products

CarUX, our subsidiary, is dedicated to enhancing design flexibility for automotive interiors and exteriors, while providing customers with more differentiated and flexible space designs. In the field of smart cockpit design, CarUX prioritizes safety while integrating practical and entertainment features to launch a fully integrated smart cockpit simulation system. Through a cockpit domain control system, it seamlessly connects all in-vehicle visual control terminals to directly display key information required by drivers and passengers, creating an immersive in-vehicle interactive experience. Developed on a brand-new automotive hardware and software platform, this system can be rapidly integrated into OEMs

for global automotive brands.

In addition, CarUX provides advanced display technologies for automotive interiors. These include very-high-performance direct-lit LCD displays, ultra-high-brightness MicroLED head-up displays (HUDs), and innovative technologies for smart peripherals that help maintain clear visibility of HUDs and enable dynamic movement of in-vehicle displays. Among them, "Windshield Reflective Solution" (WRS) includes "9.6-inch MicroLED AR Reflective Display" and "48-inch Panoramic Reflective Display", which utilizes MicroLED display modules with high brightness, high resolution, and low power consumption, the stereoscopic images with depth of field, and the exclusive algorithms and interface design to project information onto the windshield of the vehicle. It also integrates functions such as distance and directional indicators with the actual external environment, and provides drivers with essential driving information when they look directly at the road in front of them to enhance driving safety; at the same time, it can also expand the projection range to the passenger side to enjoy a variety of entertainment content, and can be switched to disable the local projection of information at any time to reduce the light source in the cabin and enhance comfort. In terms of technology, compared with traditional head-up displays, the volume of the device can be greatly reduced, thus freeing up space in the car. In summary, the WRS solution not only enhances driving safety, but also provides a high-tech, comfortable and flexible design for car interiors, bringing brand new experience for car users.

3. Continuous upgrades in MicroLED technology

In high-end consumer market applications, MicroLED mirror displays feature ultra-high brightness (3,600 nits), high reflectivity (>86%), and high transmittance (>95%). Even in bright environments, they deliver clear and vivid images, ensuring exquisite details. The invisible screen design seamlessly integrates the mirror surface with the display, making it suitable for smart home and luxury commercial spaces, achieving a perfect harmony of technology and aesthetics while delivering an unparalleled visual experience. This product has also won the 2025 GPA Display Component Product Technology Award. The 25.4-inch MicroLED seamless mirror display had been deployed in cosmeceuticals retail stores in December 2025, integrating with AI recognition technology. It addresses the technical challenges often faced by traditional mirror screens in practical applications—such as image blurring, insufficient color saturation, or inadequate brightness caused by ambient light reflection—enabling the screen to display clear digital images while retaining the mirror's reflective function.

The Company's new MicroLED component design combines optimized circuitry, optical architecture, and advanced thermal control to effectively reduce optoelectronic losses and enhance luminous efficiency, enabling the system to achieve ultra-high brightness while maintaining balance of energy efficiency and high performance.

To date, MicroLED technology has secured nearly 600 patents in the United States. We will continue to deepen the development of innovative high-end display technologies, actively expand into diverse application fields, and collaborate with customers and strategic partners to extend the industry value chain.

4. N3D (Naked-Eye 3D) technology yields positive results

The Company has developed a naked-eye 3D mobile medical platform to address diverse needs such as telemedicine, preoperative assessment, intraoperative navigation, and doctor-patient consultations. It offers 27-inch naked-eye 3D display solutions for operating room and 13.3-inch solutions for mobile diagnosis and treatment, as well as immersive medical teaching tools and a shared decision-making platform for doctors and patients, serving as essential auxiliary tools for surgery education and preoperative diagnosis.

By converting CT and MRI scan data into high-precision naked-eye 3D images, it helps physicians observe organs, lesions, tumors, and skeletal structures more intuitively, thereby improving diagnostic accuracy. Combined with AI image segmentation technology, it automatically distinguishes structures such as organs, blood vessels, and tumors within the images, allowing physicians to quickly assess conditions and shorten diagnosis time.

During minimally invasive or complex surgeries, naked-eye 3D technology provides real-time 3D images, assisting physicians in more accurately determining the location of lesions and avoiding critical tissues, thereby improving surgical safety and success rates. Through naked-eye 3D technology, physicians can perform three-dimensional simulations

prior to surgery, such as for cardiac, brain, or orthopedic procedures, to enhance the accuracy and efficiency of preoperative planning.

Naked-eye 3D technology can be used for training medical students and professional physicians, providing more intuitive explanations of anatomy and pathology than traditional 2D images, thereby improving learning efficiency. Physicians can use naked-eye 3D technology to practice virtual surgeries, simulating real surgical scenarios to enhance surgical skills and clinical decision-making abilities.

Combining naked-eye 3D with notebook products, the Company has launched the "16-inch Single-User Naked-Eye 3D Display," equipped with proprietary N3D technology and a real-time eye-tracking system. This keeps 3D display delay below 1 ms and supports seamless switching between 3D and 2D display modes. This technology not only significantly enhances immersion and 3D depth perception but also ensures comfort during extended use, making it suitable for diverse applications such as AI design, 3D modeling, digital content creation, and professional presentations.

The newly launched "27-inch Eye-Tracking Naked-Eye 3D Display" features proprietary N3D technology, addresses the issue of 3D motion sickness through low-crosstalk algorithms and offers advantages such as real-time rendering and minimal system resource consumption, delivering an immersive visual experience for gamers.

5. Revolution of notebook market

As AI applications rapidly penetrate learning, creative, and mobile office environments, notebooks are rapidly evolving into highly interactive, high-performance smart computing platforms. The Company has made forward-looking investments in Oxide process capacity to address the market's dual demands for display performance and power consumption management. Oxide technology features high electron mobility and low leakage current, making it particularly suitable for ultra-low-power applications in low-frequency display scenarios. It can effectively extend the battery life of AI notebooks during standby, reading, and document processing scenarios; simultaneously, it supports the display requirements of gaming applications with high refresh rates and variable refresh rate (VRR), maintaining stable and smooth performance during rapid screen switching, thereby providing more differentiated display solutions for the gaming and high-performance NB markets.

Regarding touchscreen display solutions, the Company has successfully created a highly cost-competitive architecture on its a-Si technology platform by integrating IC solutions co-developed with strategic suppliers. This architecture can flexibly address the mainstream and education-oriented NB markets, help customers rapidly adopt AI interactive applications; Meanwhile, for high-end and ultra-slim models, we have adopted a design architecture combining LTPS with integrated IC, which not only effectively reduces system power consumption but also significantly simplifies PCBA layout and improves space utilization, laying a critical foundation for products that achieve long battery life, lightweight design, and high performance simultaneously.

To address the needs of mobile office and extended use, the Company continues to refine display quality and material innovation, and introduces "paper-like" low-reflection eye-friendly display technology. This effectively reduces ambient light reflection and glare interference, enhances text readability and visual comfort, making it particularly suitable for education, business, and creative professionals. The Company has also developed carbon fiber ultra-thin display designs that further reduce weight while maintaining structural strength and durability, helping brand customers create flagship products that are more portable and feature a premium aesthetic. In terms of information security and privacy protection, the Company continues to upgrade next-generation anti-peep display technology, further optimizing the display effects of privacy protection mode and information sharing mode.

6. Backlight upgrades for high-end large-size products

The high-end product platform for large-size TVs is primarily based on OLED (QD-OLED). Conventional LCD TVs require Mini LED backlighting to enhance visual performance and thereby increase product value. To maximize the value of LCD products, we have developed Micro/Mini LED RGB/BGB backlighting solutions for LCD. With tens of thousands of micro-LEDs enabling zone dimming, dynamic contrast ratios reach up to 1,000,000:1, eliminating light halo and delivering an immersive, lifelike viewing experience.

As the supply chain matures gradually, there remains an opportunity to achieve a more competitive cost structure compared to high-end OLED TVs. In the future, LCD technology has the potential to penetrate the high-end home and commercial display markets, securing a strategic foothold in the high-end display market.

Gaming displays with ultra-high refresh rates

With the continued growth of the esports industry and high-performance gaming applications, high refresh rate displays have become a key specification for professional-grade products. The Company is actively investing in the R&D of professional gaming displays with ultra-high refresh rates of 500–600 Hz, focusing on screen response speed, dynamic clarity, and stable display performance. With a refresh rate soaring to 580Hz and an ultra-low response time of 1ms, gamers experience zero latency and smooth images. Supporting HDMI 2.2 and compatible with VRR adaptive synchronization, these displays ensure worry-free future upgrades and stand as the undisputed leader in panels offering exceptional CP value.

Ultra-high refresh rate products present significant technical barriers in panel driving, signal processing, and system integration, resulting in relatively limited market competition and facilitating the establishment of a differentiated product positioning. This product line not only addresses the growth trends in the esports market but can also be extended to fields such as simulation training, real-time image processing, and high-end interactive applications, bringing the Company growth-oriented niche market opportunities.

Ultra-high-resolution 8K professional displays

In response to the increasing demand for display precision in professional imaging applications, the Company has invested in developing LCD panels with the latest 8K ultra-high-definition resolution (7680x4320). Every inch of the screen offers exquisite detail, with color reproduction reaching 99% of the DCI-P3 wide color gamut. HDR1000 peak brightness ensures deeper blacks and brighter whites.

The product is clearly positioned for professional markets such as content creation, medical imaging, industrial design, and precision visual applications. These markets place a high premium on display quality, stability, and long-term supply reliability, while being relatively less price-sensitive, which is conducive to achieving a favorable gross margin structure. By adopting high-PPI technology, the Company can not only enhance its technological visibility in the professional display sector but also gradually increase the revenue share of high-end, customized products, thereby progressively reducing the reliance of overall operation on fluctuations in the single consumer market

Smart LC Window: Transforming Windows into 5G Base Stations

We are actively expanding into non-display application areas. Leveraging our proprietary liquid crystal film technology and expertise in glass integration processes, we are pioneering the next generation of smart liquid crystal window applications. In collaboration with the Industrial Technology Research Institute (ITRI), we have developed a smart LC window that not only features dimming and energy-saving functions but also serves as a 5G signal receiver, enhancing signal performance and the wireless connectivity experience.

Furthermore, in automotive applications, we are actively integrating LCD dimming technology into automotive components such as "Smart Dimming Windows," "Smart Dimming Rearview Mirrors," and "Smart Sun Visors." This drives green business opportunities, creates new industry prospects, and advances environmental sustainability and a green future. In particular, the "Smart Dimming Sun Visor" is equipped with intelligent dimming function that automatically adjusts the visor's light transmittance in real-time based on external light intensity. This protects the driver's vision from glare and eliminates the blind spots associated with traditional sun visors, providing a safer and more comfortable driving experience. The dual-view automotive window display offers a safer and more versatile way to present in-vehicle information. This technology combines aesthetics, energy efficiency, and signal stability in a single solution.

Commercial display solutions

Display products continue to evolve toward customization and diverse application scenarios. Based on different usage environments and system requirements, we provide differentiated display specifications to meet application needs such as long-term operation,

high reliability, and stable display performance. Related solutions already cover public information displays (PIDs), transportation displays, and entertainment industry applications, such as casino gaming displays, among other specialized markets. Through flexible design and module integration capabilities, we enhance product applicability across various public and commercial settings, which is also a key strategic direction for expanding professional display applications.

11. Development of aerospace display systems

Product development focuses on meeting specific technical requirements and establishing a comprehensive aerospace certification system to address demands for high reliability, high stability, and operation under harsh environmental conditions. Related display solutions can be applied to cockpit and pilot display systems for aircrafts such as civil aircrafts, fighters, and attack helicopters, covering critical applications such as flight information, mission displays, and human-machine interfaces. Through design and validation processes compliant with aerospace industry standards, we are progressively building an aerospace display product line with long-term supply and technological continuity, and expanding into high-value-added and high-barrier-to-entry market applications.

12. Maturation of InnoGallery core technologies and product commercialization

Echo InnoGallery is a digital art display that integrates AI-powered voice interaction with art aesthetics. Using innovative voice recognition technology, viewers can issue voice commands to instantly generate or switch between dynamic artworks, creating a brand-new human-machine interaction experience. The built-in environmental sensing system can detect ambient light intensity and color temperature in real time, automatically adjust display brightness and color, and create a soft, comfortable paper-like viewing experience that minimizes eye strain even during prolonged use. This year, we completed the development of 27-inch and 65-inch models featuring artistic voice recognition and interaction functions, integrated smart light-sensing system algorithms, optimized overall product design, and obtained quality and safety certifications.

Echo InnoGallery was honored with the 34th Taiwan Excellence Award. InnoGallery is not only an innovative art medium but also represents the concrete application of AI technology in humanities and creativity. Utilizing anti-glare and anti-reflection technologies, it delivers a realistic painting-like visual experience with low reflectivity and high diffusion, akin to paper, delicately reproducing brushstrokes and color gradations while ensuring comfort during extended viewing. Its eco-friendly, energy-efficient hardware design and the paperless advantages of intelligently generated content embody a new direction for future green technology and sustainable art.

13. InnoPaper liquid crystal electronic paper display technology

Combined with the "Software TCON Solution," it offers high reflectivity, high color saturation, low power consumption, and eye protection by eliminating harmful blue light. Through software algorithms, the system eliminates the need for specific TCON chips, reduces reliance on specific ICs, and enables high-performance image processing and display control, thereby enhancing competitiveness. The display panel utilizes a three-layer reflective cholesteric liquid crystal structure. Its bistable characteristics reduce power consumption, as power is only required when refreshing the screen. InnoPaper won the Outstanding Product Award of 2025 GPA Display Component Product Technology.

In response to the "global trend toward carbon neutrality" and "growing awareness of eye protection," we have developed a "multi-functional liquid crystal e-paper display" featuring high reflectivity, high color saturation, low power consumption (bistable), and free of harmful blue light. It is a reflective LCD that combines the functions of an e-reader and an electronic billboard, making it suitable for applications in education, retail, transportation, and healthcare. It addresses environmental, energy-saving, and eye-protection needs. When applied to e-paper products, it can effectively replace paper, contributing to global environmental protection.

1.2 Summary of Business Plan for 2026

In response to the evolving global industrial landscape, the Company has accelerated value realization through asset revitalization and technology upgrading. We have successfully transformed mature panel production capacity into high-value-added solutions such as semiconductor packaging and automotive smart cockpit systems.

In 2026, we will accelerate our transformation, expand revenue contribution from non-display businesses, and enhance return on equity by deepening software-hardware integration synergies and optimizing asset allocation—delivering sustainable long-term growth and corporate value. Key strategic directions are as follows:

Advanced Semiconductor Packaging (FOPLP): Technology Upgrading to Strengthen the Moat

Benefiting from optimized capacity efficiency, Chip-first technology entered mass production in 2025 and has been incorporated into the supply chains of major international customers. In 2026, our focus will shift from volume expansion to “higher-value” growth. The Company will advance the development of next-generation processes including RDL-first and Through-Glass Via (TGV). Through collaborative research and development (R&D) with customers, we will establish long-term technological barriers and target high-margin, high-end applications.

Smart Cockpit: Expanding Footprint and Transitioning to a Tier 1 System Supplier

Following the completion of the acquisition of Pioneer by subsidiary CarUX at the end of 2025, the Company will leverage Pioneer’s established OEM customer base in Japan and worldwide to accelerate market and customer expansion. This will facilitate entry into the supply chains of Japanese automakers and realize the scale synergies post-acquisition. In 2026, the Company will deepen cross-domain integration between CarUX and Pioneer in audiovisual technology and software development. By combining display technology with Pioneer’s strengths in automotive audio, HMI software, and channel access to global automakers, the Company will transform into a smart cockpit Tier 1 supplier with core software-hardware integration capabilities. Through integrating the global R&D and manufacturing sites of both parties, the Company will establish a responsive service network to quickly address demands from global OEM customers. Flexible allocation of global supply chain procurement resources will further enhance cost competitiveness and customer value-added services.

Panel Product Strategy: Focusing on High-Margin Product Applications:

The Company will commercialize MicroLED applications including transparent displays and high-end automotive display products, with a focus on high-margin niche markets and diversified scenario applications. To drive long-term growth, the Company will precisely target customer needs and continuously raise the share of high-margin products used in smart transportation, marine, military and other sectors. At the same time, the Company will improve manufacturing efficiency and quality control through process optimization, and strengthen its competitive advantage in high-end markets with superior solutions.

As the Company enters the second six years of the “666 Planning Blueprint”, we are actively driving core transformation and international expansion. By re-evaluating and leveraging the value of existing assets from different perspectives, we are revitalizing legacy assets to present a fresh outlook.

We will continue to strengthen our core display business, actively enter the automotive market, and expand into the advanced semiconductor packaging sector in the future. Building on our existing foundation, we will create additional value to drive our transformation strategy forward.

We hope all shareholders could continue to provide your support and encouragement. Lastly, I wish everyone good health and the best of luck. Thank you.

Chairman: Jin-Yang Hung
Managerial Officer: Hung-Wen Yang
Accounting Officer: Rou-Li Cheng

II. Corporate Governance Report

2.1 Directors and Management Team

2.1.1 Directors

March 29, 2026; Unit: Shares

Title	Nationality/Place of registration	Name (Note 1)	Gender /Age	Date Elected (Note 2)	Term (Y)	Date First Elected	Shareholding when Elected		Current Shareholding		Shareholding of spouse and underage children		Shares held through nominees		Experience (Education)	Other Position	Spouse or relatives of second degree or closer acting as managerial officer or director
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Chairman	TW	Jin-Yang Hung	Male 50-59	2025.05.07	3	2018.06.21	1,651,311	0.02	2,114,768	0.03	—	—	—	—	MBA, Department of Business Administration, Columbia University, USA
Special Assistant to Chairman, Innolux Corporation
Associate VP, Foxconn Group
President, TCC International Holdings Limited
Managing Director, BNP Paribas Asset Management
Executive Director, Goldman Sachs Group, Inc.	Note 3	—	—	—
Corporate Director	TW	Innolux Education Foundation	—	2025.05.07	3	2025.05.07	1,415,310	0.02	1,415,310	0.02	—	—	—	—	—	—	—	—	—
		Representative: Chu-Hsiang Yang	Male 50-59				—	—	2,246,917	0.03	2,016	—	—	—	M.S., Chemical Engineering, National Central University
Vice President, Innolux Corporation
Associate VP, Chi Mei Optoelectronics Corporation	Note 4	—	—	—
Director	TW	Hung-Wen Yang	Male 50-59	2025.05.07	3	2009.07.09	706,793	0.01	1,071,236	0.01	—	—	—	—	M.S., Chemical Engineering, National Cheng Kung University
Factory Director, HannsTouch Solution Incorporated.
Factory Director, AUO Corporation
Deputy Factory Director, Unipac Optoelectronics Corporation
R&D Engineer, Chang Chun Group	Note 5	—	—	—
Director	TW	Chi-Chia Hsieh	Male 80-89	2025.05.07	3	2013.06.19	—	—	—	—	—	—	—	—	Ph.D of Mechanical Engineering, Santa Clara University, USA
Chairman, Microelectronics Technology Inc.	Note 6	—	—	—

Title	Nationality/ Place of registration	Name (Note 1)	Gender /Age	Date Elected (Note 2)	Term (Y)	Date First Elected	Shareholding when Elected		Current Shareholding		Shareholding of spouse and underage children		Shares held through nominees		Experience (Education)	Spouse or relatives of second degree or closer acting as managerial officer or director
							Shares	%	Shares	%	Shares	%	Shares	%		Title	Name	Relation
Independent Director	TW	Yong-Fen Hsieh	Female 60-69	2025.05.07	3	2025.05.07	—	—	—	—	—	—	—	—	Ph.D., Materials Science, National Tsing Hua University, Taiwan Positions
Chairman and CEO, Materials Analysis Technology Inc
Senior Manager, United Microelectronics Corporation Manager,
Unipac Optoelectronics Corporation
Director of AU Optronics Corp.	Note 7	—	—	—
Independent Director	TW	Chih-I Wu	Male 50-59	2025.05.07	3	2022.06.24	—	—	—	—	—	—	—	—	Ph.D., Electrical Engineering, Princeton University, USA
General Director, Electronics and Optoelectronic System Research Laboratories, Industrial Technology Research Institute
Deputy General Director, Graduate Institute of Photonics and Optoelectronics, National Taiwan University
Senior Engineer, R&D Team Leader, Intel Corporation, USA	Note 8	—	—	—
Independent Director	TW	Chih-Wei Wu	Male 60-69	2025.05.07	3	2022.06.24	—	—	—	—	—	—	—	—	MBA, California State University, USA
CEO, Credit Suisse AG
Executive Chairman, Standard Chartered Bank	Note 9	—	—	—
Independent Director	TW	Hsin-Bei Shen	Female 40-49	2025.05.07	3	2022.06.24	—	—	—	—	—	—	—	—	LL.M., University of Southern California, USA
Executive Master of Business Administration (EMBA), Finance Institute, College of Management, National Taiwan University
Master of Laws, College of Technology and Law, National Chiao Tung University
Bachelor of Laws, National Taiwan University
Legal and Human Resources Director, Wpd Taiwan Energy Co., Ltd.
Advisor, TSAR & TSAI Law Firm Prosecutor, District Prosecutors Office, Ministry of Justice, Taiwan	Note 10	—	—	—

10 -

Title	Nationality/ Place of registration	Name (Note 1)	Gender /Age	Date Elected (Note 2)	Term (Y)	Date First Elected	Shareholding when Elected		Current Shareholding		Shareholding of spouse and underage children		Shares held through nominees		Experience (Education)	Other Position	Spouse or relatives of second degree or closer acting as managerial officer or director
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relation
Independent Director	TW	Feng-Kan Changg	Male 60-69 yrs. old	2025.05.07	3	2025.05.07	—	—	—	—	—	—	—	—	Dual Master's Degree in Accounting and Taxation from the University at Albany, State University of New York Chief Operating Officer/Partner, Tax Department, Deloitte Touche Tohmatsu CPA LLP Chairman of Taipei Certified Public Accountants Association	Note 11	—	—

Note 1: Existing Directors as of the date of the annual report.
Note 2: The terms of Board members (including Independent Directors) reelected on June 24, 2022 and effective on July 1, 2022.
Note 3: CEO of Innolux Corporation; Chairman and CEO of CarUX Holding Limited, Chairman and CEO of CarUX Technology PTE. LTD., Director of CarUX Technology Hong Kong Holding Limited, Director of INNOLUX HOLDING LIMITED, Director of Innolux Hong Kong Holding Limited, Director of Innolux Japan Co., Ltd, Director of Innolux Singapore Holding Pte. Ltd., Director of Keyway Investment Management Ltd., Director of Landmark International Ltd., Director of ROCKETS HOLDING LIMITED, Director of STANFORD DEVELOPMENTS LIMITED, Director of Suns Holding Ltd., Director of TOPOLY OPTOELECTRONICS (B.V.I.) LTD, Director of TOPOLY OPTOELECTRONICS (CAYMAN) LTD, Director of Warriors Technology Investments. Directors of Yuan Chi Investment Co., Ltd. (Statutory representative), Director of Innolux Education Foundation, Chairman of InnoJoy Investment Corporation (Statutory representative), Director of FI Medical Device Manufacturing Co., Ltd. (Statutory representative)
Note 4: Chairman of InnoCare Optoelectronics Corporation (Statutory representative), Director of KA Imaging Inc., Director of Innolux Education Foundation
Note 5: Director of Innolux Education Foundation, Director of Innolux Japan Co., Ltd.
Note 6: Chairman of PanelSemi Corporation, Directors of CarUX Technology Taiwan Inc. (Statutory representative), Directors of GIO Optoelectronics Corp. (Statutory representative); Directors of CarUX Holding Limited, Directors of CarUX Technology Pte. Ltd, Directors of Double Star Inc., Directors of Innolux Japan Co., Ltd
Note 7: Member of the Company's Audit Committee, Convenor of the Compensation and Remuneration Committee, Chairman of Microelectronics Technology, Inc., IQE Taiwan Corporation, Jupiter Network Corp. (Statutory representative), Welltop Technology Co. Ltd (Statutory representative), Taicom Capital Limited (Statutory representative); Directors of Bright LED Electronics Corp., Henan Bright Crystal Company Limited, Sasson International Holdings Inc. (Statutory representative), Kopin Corporation Inc., T'Cement (Statutory representative), Bright Crystal Company Limited, TCM Limited, Jiang Yang Technology (Wuxi) Co., Ltd. (Statutory representative), Kofirite Corp., MTI Laboratory Inc., RadioComp ApS and Member of Remuneration Committee of Kopin Corporation, Inc.
Note 8: The convener of the company's audit committee, the convener of the corporate governance and nomination committee, Professor, Department of Electrical Engineering & Graduate Institute of Photonics and Optoelectronics, National Taiwan University; Vice President and Senior Technical Expert of Industrial Technology Research Institute and CEO of Taiwan Semiconductor Industry Association
Note 9: Members of the Company's Audit Committee, Members of the Compensation and Remuneration Committee, Chairman of Zhide Investment Co., Ltd.; Independent Directors of Sinyi Housing, Co., Ltd., and Preferred Bank (California, USA); Directors of Longchen Paper & Packaging Co., Ltd., and Hematech Biotherapeutics Inc.; Supervisor of Taiwan Farm Industry Co., Ltd.
Note 10: Members of the Company's Audit Committee, Members of the Corporate Governance and Nomination Committee, Chairperson of Infinite Dimension Management Consultants Co., Ltd.; Chair of the ESG Committee of the Taiwan Bar Association (TWBA) and Independent Director of Cica-Huntek Chemical Technology Taiwan Co., Ltd.
Note 11: Members of the Company's Audit Committee, Members of the Compensation and Remuneration Committee, Independent Director of Solid State System Company Limited, Director of INT Tech (HK) Co., Ltd. and Supervisor of Asmeditron Inc.
Note 12: Where the chairman and president or equivalent position (highest level executive officer) is the same person, the spouse, or a first-degree relative, provide information on the reason, reasonableness, necessity, and future improvement measures:
The Company's CEO position is responsible for the sustainable development and long-term business strategy of the Company, while the President and COO position is responsible for the planning and management of the Company's daily operation. The responsibilities of the CEO position and the President and COO position are clearly defined for an integrated effect. The Chairman of the Company keeps communication channel open with the Directors about the Company's operation and planning in order to implement the Company's corporate governance. Since June 24, 2022 when the General Meeting of Shareholders re-elected all directors, the number of independent directors has been increased to more than one-half of the total number of directors, thus strengthening the independence of the Board of Directors. In addition, we also increase the number of female directors to perform their duties faithfully from a more diversified and detachment perspective, enhance the functions of the Board of Directors and strengthen the supervisory function to implement corporate governance.

Major shareholders of the institutional shareholders:

March 29, 2026

Name of institutional shareholders	Major shareholders of the institutional shareholders
Innolux Education Foundation	NA

Disclosure of professional qualifications and independence analysis of directors (1) Professional qualifications and experience for directors

Name / Title	Professional qualifications and experience
Chairman Mr. Jin-Yang Hung	MBA, Columbia University, USA Department of Business Administration. Mr. Hung is the Chairman and CEO of the Company. He possesses over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company and over 20 years of experience in foreign company finance operations, over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company, as well as operational judgment, accounting and financial analysis, operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities to lead the Company to become an industry pioneer and move towards sustainable management.
Innolux Education Foundation Representative Mr. Chu-Hsiang Yang	M.S., Chemical Engineering, National Central University. He is Current Chairman of InnoCare Optoelectronics Corporation. He possesses almost 30 years of work experience in complete panel industry and over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company, as well as operational judgment, accounting and financial analysis, operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.
Director Mr. Hung-Wen Yang	M.S., Chemical Engineering, National Cheng Kung University. He currently serves as the Company's President, with over 30 years of experience in flat display industry. He possesses comprehensive expertise across the display sector. He possesses over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company, as well as operational judgment, financial analysis, operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.
Independent Director Mr. Chi-Chia Hsieh	Mr. Hsieh is the Chairman of Microelectronics Technology, Inc. and Ph.D of Mechanical Engineering, Santa Clara University, USA. Previously served the convener of the Company's Audit Committee and Remuneration Committee, and possessing over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company. He specializes in market strategy and investment planning with extensive business experience, and possesses operational judgment, accounting and financial analysis, operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.
Independent Director Mrs. Yong-Fen Hsieh	Ph.D., Materials Engineering, National Tsing-Hua University. She currently serves as Chairman and President of Materials Analysis Technology Inc. (MA-tek). She is a member of the Audit Committee and Convener of the Remuneration Committee of the Company. She possesses over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company, as well as operational judgment, financial analysis, operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.

Name / Title	Professional qualifications and experience
Independent Director
Mr. Chih-I Wu	Ph.D., Electrical Engineering, Princeton University, USA. He is a Professor at Department of Electrical Engineering and Graduate Institute of Photonics and Optoelectronics, National Taiwan University; Vice President and Senior Technical Expert of Industrial Technology Research Institute, and member of Audit Committee and Convenor of the Corporate Governance and Nomination Committee of the Company. He has been teaching in the Department of Electrical Engineering and Graduate Institute of Photonics and Optoelectronics, National Taiwan University for nearly 20 years, has extensive knowledge in semiconductor related fields, has published many journals and conference papers, and holds several US patents. He possesses over 5 years of work experience necessary for the Business of the Company, as well as operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.
Independent Director
Mr. Chih-Wei Wu	MBA, California State University, USA. Mr. Wu is the Chairman of Zhide Investment Co., Ltd., and member of the Company's Audit Committee and Remuneration Committee. He once served as the CEO of Credit Suisse AG (Switzerland). He possesses over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company. He specializes in market strategy and investment planning with extensive business experience, and possesses operational judgment, accounting and financial analysis, operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.
Independent Director
Ms. Hsin-Bei Shen	LL.M., University of Southern California, USA; passing Judicial Officer Examination and the Bar Examination. She is currently a Chair of the ESG Committee of the Taiwan Bar Association (TWBA) and the Legal Director and ESG Director of Skyborn Renewables Taiwan Co., Ltd. She is a member of the Audit Committee and the Corporate Governance and Nomination Committee of the Company. She has been serving as a counselor of Tsar & Tsai Law Firm and a prosecutor in Prosecutors Office of Taipei District Court for over 10 years. She specializes in the green energy industry and is committed to promoting and supporting the government in completing ESG-related legislation and regulations. She possesses over 5 years of work experience in legal affairs and otherwise necessary for the Business of the Company, as well as operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.
Independent Director
Mr. Feng-Kan Chang	Dual Master’s Degrees in Accounting and Taxation from the University at Albany, State University of New York. He currently serves as Chairman of Mazars Advisory Co., Ltd., and a member of the Audit Committee and Remuneration Committee of the Company. He previously served as Chief Operating Officer/Operating Partner of the Tax Services Department at Deloitte & Touche, and as President of the Taipei CPA Association. He possesses over 30 years of professional experience in accounting and taxation. He possesses over 5 years of work experience in Commerce, Finance and otherwise necessary for the Business of the Company, as well as operational judgment, operations management, crisis management, industry knowledge, international market perspective, leadership and decision-making abilities.

13 -

(2) Independence of directors

Name / Title	Independence	Number of positions as independent director in other public companies
Independent Director
Mrs. Yong-Fen Hsieh	Two years before being elected or during the term of office meets the following criteria in:
(1) Not an employee of the Company or any of its affiliates.
(2) Not a Director or supervisor of the Company or any of its affiliates (not applicable in cases where the person is an Independent Directors of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(3) Not 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 amount of one percent or more of the total number of issued shares of the Company or ranks as one of its top ten shareholders.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of a manager in (1) or personnel in (2) and (3).
(5) Not a Director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the Company's outstanding shares, a top five shareholder, or appointed as the Company's Director or supervisor in accordance with Article 27, Paragraph 1 or 2 of the Company Act (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(6) Not a Director, supervisor, or employee of other companies controlled by the same person with over half of the Company's Director seats or shares with voting rights (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(7) Not a Director, supervisor, or employee of another company or institution who is the same person or spouse of the Company's chairperson, president or equivalent position (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(8) Not a Director, supervisor, or executive officer of a specific company or institution with financial or business dealings with the Company, or shareholder with 5% or more shares of the Company (not applicable in cases where the specific company or institution holds 20% or more but less than 50% of the Company's outstanding shares, and is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(9) Not a professional individual who, or an owner, partner, Director, supervisor, or manager of a sole proprietorship, partnership, company, or institution that audited or provided commercial, legal, financial, or accounting services for total compensation not exceeding NT$500,000 in the most recent two years to the Company or to any affiliate of the Company, or a spouse thereof. This does not apply to members of the Remuneration Committee, Public Tender Offer Review Committee, or Merger and Acquisition Special Committee performing duties in accordance with the Securities and Exchange Act or laws and regulations related to mergers and acquisitions.
(10) Not having a marital relationship, or a relative within the second degree of kinship to any other Directors of the Company.
(11) Not having any of the situations set forth in Article 30 of the Company Act of the ROC.
(12) Not a government agency, juristic person, or its representative set forth in Article 27 of the Company Act of the ROC.	1
Independent Director
Mr. Chih-I Wu	Two years before being elected or during the term of office meets the following criteria in:
(1) Not an employee of the Company or any of its affiliates.
(2) Not a Director or supervisor of the Company or any of its affiliates (not applicable in cases where the person is an Independent Directors of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).	None

14 -

Name / Title	Independence	Number of positions as independent director in other public companies
	(3) Not 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 amount of one percent or more of the total number of issued shares of the Company or ranks as one of its top ten shareholders.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of a manager in (1) or personnel in (2) and (3).
(5) Not a Director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the Company's outstanding shares, a top five shareholder, or appointed as the Company's Director or supervisor in accordance with Article 27, Paragraph 1 or 2 of the Company Act (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(6) Not a Director, supervisor, or employee of other companies controlled by the same person with over half of the Company's Director seats or shares with voting rights (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(7) Not a Director, supervisor, or employee of another company or institution who is the same person or spouse of the Company's chairperson, president or equivalent position (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(8) Not a Director, supervisor, or executive officer of a specific company or institution with financial or business dealings with the Company, or shareholder with 5% or more shares of the Company (not applicable in cases where the specific company or institution holds 20% or more but less than 50% of the Company's outstanding shares, and is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(9) Not a professional individual who, or an owner, partner, Director, supervisor, or manager of a sole proprietorship, partnership, company, or institution that audited or provided commercial, legal, financial, or accounting services for total compensation not exceeding NT$500,000 in the most recent two years to the Company or to any affiliate of the Company, or a spouse thereof. This does not apply to members of the Remuneration Committee, Public Tender Offer Review Committee, or Merger and Acquisition Special Committee performing duties in accordance with the Securities and Exchange Act or laws and regulations related to mergers and acquisitions.
(10) Not having a marital relationship, or a relative within the second degree of kinship to any other Directors of the Company.
(11) Not having any of the situations set forth in Article 30 of the Company Act of the ROC.
(12) Not a government agency, juristic person, or its representative set forth in Article 27 of the Company Act of the ROC.
Independent Director
Mr. Chih-Wei Wu	Two years before being elected or during the term of office meets the following criteria in:
(1) Not an employee of the Company or any of its affiliates.
(2) Not a Director or supervisor of the Company or any of its affiliates (not applicable in cases where the person is an Independent Directors of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(3) Not 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 amount of one percent or more of the total number of issued shares of the Company or ranks as one of its top ten shareholders.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of a manager in (1) or personnel in (2) and (3).
(5) Not a Director, supervisor, or employee of a corporate shareholder that	None

Name / Title	Independence	Number of positions as independent director in other public companies
	directly holds 5% or more of the Company's outstanding shares, a top five shareholder, or appointed as the Company's Director or supervisor in accordance with Article 27, Paragraph 1 or 2 of the Company Act (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(6) Not a Director, supervisor, or employee of other companies controlled by the same person with over half of the Company's Director seats or shares with voting rights (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(7) Not a Director, supervisor, or employee of another company or institution who is the same person or spouse of the Company's chairperson, president or equivalent position (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(8) Not a Director, supervisor, or executive officer of a specific company or institution with financial or business dealings with the Company, or shareholder with 5% or more shares of the Company (not applicable in cases where the specific company or institution holds 20% or more but less than 50% of the Company's outstanding shares, and is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(9) Not a professional individual who, or an owner, partner, Director, supervisor, or manager of a sole proprietorship, partnership, company, or institution that audited or provided commercial, legal, financial, or accounting services for total compensation not exceeding NT$500,000 in the most recent two years to the Company or to any affiliate of the Company, or a spouse thereof. This does not apply to members of the Remuneration Committee, Public Tender Offer Review Committee, or Merger and Acquisition Special Committee performing duties in accordance with the Securities and Exchange Act or laws and regulations related to mergers and acquisitions.
(10) Not having a marital relationship, or a relative within the second degree of kinship to any other Directors of the Company.
(11) Not having any of the situations set forth in Article 30 of the Company Act of the ROC.
(12) Not a government agency, juristic person, or its representative set forth in Article 27 of the Company Act of the ROC.
Independent Director
Ms. Hsin-Bei Shen	Two years before being elected or during the term of office meets the following criteria in:
(1) Not an employee of the Company or any of its affiliates.
(2) Not a Director or supervisor of the Company or any of its affiliates (not applicable in cases where the person is an Independent Directors of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(3) Not 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 amount of one percent or more of the total number of issued shares of the Company or ranks as one of its top ten shareholders.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of a manager in (1) or personnel in (2) and (3).
(5) Not a Director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the Company's outstanding shares, a top five shareholder, or appointed as the Company's Director or supervisor in accordance with Article 27, Paragraph 1 or 2 of the Company Act (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).	2

Name / Title	Independence	Number of positions as independent director in other public companies
	(6) Not a Director, supervisor, or employee of other companies controlled by the same person with over half of the Company's Director seats or shares with voting rights (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).

(7) Not a Director, supervisor, or employee of another company or institution who is the same person or spouse of the Company's chairperson, president or equivalent position (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).

(8) Not a Director, supervisor, or executive officer of a specific company or institution with financial or business dealings with the Company, or shareholder with 5% or more shares of the Company (not applicable in cases where the specific company or institution holds 20% or more but less than 50% of the Company's outstanding shares, and is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).

(9) Not a professional individual who, or an owner, partner, Director, supervisor, or manager of a sole proprietorship, partnership, company, or institution that audited or provided commercial, legal, financial, or accounting services for total compensation not exceeding NT$500,000 in the most recent two years to the Company or to any affiliate of the Company, or a spouse thereof. This does not apply to members of the Remuneration Committee, Public Tender Offer Review Committee, or Merger and Acquisition Special Committee performing duties in accordance with the Securities and Exchange Act or laws and regulations related to mergers and acquisitions.

(10) Not having a marital relationship, or a relative within the second degree of kinship to any other Directors of the Company.

(11) Not having any of the situations set forth in Article 30 of the Company Act of the ROC.

(12) Not a government agency, juristic person, or its representative set forth in Article 27 of the Company Act of the ROC. | |
| Independent Director
Mr. Feng-Kan Chang | Two years before being elected or during the term of office meets the following criteria in:

(1) Not an employee of the Company or any of its affiliates.

(2) Not a Director or supervisor of the Company or any of its affiliates (not applicable in cases where the person is an Independent Directors of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).

(3) Not 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 amount of one percent or more of the total number of issued shares of the Company or ranks as one of its top ten shareholders.

(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of a manager in (1) or personnel in (2) and (3).

(5) Not a Director, supervisor, or employee of a corporate shareholder that directly holds 5% or more of the Company's outstanding shares, a top five shareholder, or appointed as the Company's Director or supervisor in accordance with Article 27, Paragraph 1 or 2 of the Company Act (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).

(6) Not a Director, supervisor, or employee of other companies controlled by the same person with over half of the Company's Director seats or shares with voting rights (not applicable in cases where the person is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).

17 -

Name / Title	Independence	Number of positions as independent director in other public companies
	Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(8) Not a Director, supervisor, or executive officer of a specific company or institution with financial or business dealings with the Company, or shareholder with 5% or more shares of the Company (not applicable in cases where the specific company or institution holds 20% or more but less than 50% of the Company's outstanding shares, and is an Independent Director of the Company, its parent company, subsidiary, or the subsidiary of the same parent company in accordance with the Act or with local laws).
(9) Not a professional individual who, or an owner, partner, Director, supervisor, or manager of a sole proprietorship, partnership, company, or institution that audited or provided commercial, legal, financial, or accounting services for total compensation not exceeding NT$500,000 in the most recent two years to the Company or to any affiliate of the Company, or a spouse thereof. This does not apply to members of the Remuneration Committee, Public Tender Offer Review Committee, or Merger and Acquisition Special Committee performing duties in accordance with the Securities and Exchange Act or laws and regulations related to mergers and acquisitions.
(10) Not having a marital relationship, or a relative within the second degree of kinship to any other Directors of the Company.
(11) Not having any of the situations set forth in Article 30 of the Company Act of the ROC.
(12) Not a government agency, juristic person, or its representative set forth in Article 27 of the Company Act of the ROC.

3. Diversity and independence of the Board

The Company stipulates guidelines for diversity in its Corporate Governance Principles to strengthen the function of the Board of Directors. The nomination and election of the Company's Board members are in accordance with the provisions of its Articles of Incorporation, adopting the candidates' nomination system and submitted to the shareholders meeting for election upon the Board of Directors' resolution. According to Article 20, Paragraph 4 of the Corporate Governance Principles of the Company, all Board members shall have the knowledge, skills and experience necessary to perform their duties. To achieve the ideal goal of corporate governance. The Board of Directors shall possess the following abilities:

Ability to make operating judgments.
Ability to perform accounting and financial analysis.
Ability to conduct management administration.
Ability to conduct crisis management.
Knowledge of the industry.
An international market perspective.
Ability to lead.
Ability to make policy decisions.

To strengthen corporate governance and promote the sound development of the Board of Directors' composition and structure, the Company's policy on diversity of board members per Article 20, Paragraph 3 of its Corporate Governance Principles indicates that: the composition of the board of directors shall be determined by taking diversity into consideration. It is advisable that directors concurrently serving as company managerial officers not exceed one-third of the total number of the board members, and that an appropriate policy on diversity based on the Company's business operations, operating dynamics, and development needs be formulated and include, without being limited to, the following two general standards:

(1) Basic requirements and values: Gender, age, nationality, and culture.

(2) Professional knowledge and skills: A professional background (e.g., law, accounting, industry, finance, marketing, technology,) professional skills and industry experience.

The Company's current Board of Directors consists of 9 directors, including 4 non-independent directors and 5 independent directors. All members are prominent and worthy personage in industry and academia and possess knowledge of finance, business and industry; an international market perspective; and professional ability to lead, make an operating judgment, manage the business and do crisis management. There are not any matters specified in Paragraph 3 and 4 of Article 26-3 of the Securities and Exchange Act. Directors who are also employees of the Company account for 22.22% of the Board. Independent directors account for 55.56%. Female directors account for 11.11%. Four independent directors has served for less than 3 years and one independent director has served for more than 9 years. One director is aged 40-49. Three directors are aged 50-59. Four directors are aged 60-69 and one director is aged 80-89.

If the number of directors of the same gender on the Board of Directors of the Company is less than one-third, state the reasons and the measures to be taken to improve the gender diversity of the Board of Directors:

The Company operates in an industry with a predominantly male workforce. To achieve board diversity, the number of female directors increased from one to two following the director re-election at the 2025 Annual Shareholders' Meeting. While the ratio has not yet reached one-third of the board seats, the Company will uphold the principle of merit-based appointment in future director selection. Through diverse channels to source and recruit talents, we will continue to raise the number of female directors, so as to strengthen corporate governance and fully implement the board diversity policy.

19 -

Implementation of the diversity of the Board members is as follows:

Title	Name	Basic Requirements and Values							Professional Knowledge and Skills								Seniority of Independent Director
		Nationality	Gender	Current positions in the Company	Age				80-89 years old	Operational Judgments	Management Administration	Finance & Accounting	Business & Economics	Crisis Management	Business & Economics	Abstract	Aboring	Over 9 years
					40-49 years old	50-59 years old	60-69 years old
Chairman	Jin-Yang Hung	TW	Male	V	-	V	-	-	V	V	V	V	V	V	V	V	-	-	-
Director	Chu-Hsiang Yang	TW	Male	-	-	V	-	-	V	V	V	V	V	V	V	V	-	-	-
Director	Hung-Wen Yang	TW	Male	V	-	V	-	-	V	V	V	V	V	V	V	V	-	-	-
Director	Chi-Chia Hsieh	TW	Male	-	-	-	-	V	V	V	V	V	V	V	V	V	-	-	-
Independent Director	Yong-Fen Hsieh	TW	Female	-	-	-	V	-	V	V	V	V	V	V	V	V	V	-
Independent Director	Chih-I Wu	TW	Male	-	-	V	-	-	V	V	V	V	V	V	V	V	-	V	-
Independent Director	Chih-Wei Wu	TW	Male	-	-	-	V	-	V	V	V	V	V	V	V	V	-	V	-
Independent Director	Hsin-Bei Shen	TW	Female	-	V	-	-	-	V	V	V	V	V	V	V	V	-	V	-
Independent Director	Feng-Kan Chang	TW	Male	-	-	-	V	-	V	V	V	V	V	V	V	V	V	-	-

Specific management objectives of the Board's diversity policy and their achievement

Management Objectives	Achievement
The number of directors who are also managerial officers of the Company should not exceed one-third of the total number of directors	Achieved
One-third of the board seats are held by directors of either gender.	Not Achieved
Independent directors shall serve no more than three consecutive terms	Achieved

2.1.2 Management Team
Maech 29, 2026; Unit: Shares

Title	Nationality	Name (Note 1)	Gender	Date Effective	Shareholding		Shareholdings of spouse and underage children		Shares held through nominees		Experience (Education)	Spouse or relatives of second degree or closer acting as managerial officer
					Shares	%	Shares	%	Shares	%		Title	Name	Relation
Chairman & CEO	TW	Jin-Yang Hung	Male	2018.06.21	2,114,768	0.03	—	—	—	—	MBA, Department of Business Administration, Columbia University, USA
Special Assistant to Chairman, Innolux Corporation
Associate VP, Foxconn Group
President, TCC International Holdings Limited
Managing Director, BNP Paribas Asset Management
Executive Director, Goldman Sachs Group, Inc.	Note 2	—	—	—
President & COO	TW	Hung-Wen Yang	Male	2025.05.16	1,071,236	0.01	—	—	—	—	M.S., Chemical Engineering, National Cheng Kung University
Plant Directors, Sintek Photronic Corp
Deputy Plant Directors, AUO Corporation
Manager, Unipac Optoelectronics Corp.
R&D engineer at Changchun Chemical Co., Ltd.	Director, Innolux Education Foundation
Director, Innolux Japan Co., Ltd.	—	—	—
Vice President	TW	Tai-Chi Pan	Male	2023.09.01	579,211	0.01	—	—	—	—	Graduated in Electrical Engineering of National Cheng Kung University
Assistant Manager, Unipac Optoelectronics Corp.	Director, FI MEDICAL DEVICE MANUFACTURING CO., LTD	—	—	—
Vice President	TW	Ching-Wen Huang	Female	2024.02.01	684,440	0.01	3,000	—	—	—	Bachelor of Taipei Institute of Business Technology
Assistant Manager of Materials, Unipac Optoelectronics Corp.
Assistant Manager of Materials, AUO Corporation	Note 3	—	—	—
Vice President	TW	Yu-Shui Guo	Male	2025.06.20	600,000	0.01	—	—	—	—	Master of Mechanical Engineering, Yuan Ze University
Associate VP of Entire Technology Co. Ltd
Manager of AUO Corporation
Associate Manager of Prodisc Coordinator of Ritek Corporation
Engineers at the Mechanical Engineering Research & Development Centre of ITRI	Director, GIO OPTOELECTRONICS CORP.	—	—	—
Vice President	TW	Yi-long Lin	Male	2025.08.01	—	—	—	—	—	—	PhD, Institute of Electrical Engineering, National Taiwan University of Science and Technology
Professor, Department of Computer Science and Engineering, Tatung University
Professor, Department of Information Management, Yuanpei University of Medical Technology
Professor, Department of Information Management, Central Police University	—	—	—	—
Sr. Associate VP	TW	Ke-Yi Kao	Male	2010.03.18	866,647	0.01	—	—	—	—	M.S., Chemical Engineering, University of Florida, USA
Assistant Manager, Unipac Optoelectronics Corp.	Director, BE Epitaxy Semiconductor Technology Co., Ltd.	—	—	—

21 -

Title	Nationalit	Name(Note 1)	Gender	DateEffective	Shareholding		Shareholdings of spouse and underage children		Shares held through nominees		Experience (Education)	OtherPosition	Spouse or relatives of second degree or closer acting as managerial officer
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
Associate VP	TW	Chien-Hung Liao	Male	2021.12.20	450,841	0.01	308	—	—	—	Master Program in Industrial Management, Department of Food Science, Tunghai University General Director, Innolux Corporation Director, Chi Mei Optoelectronics Corporation Engineer, WUS Printed Circuit Co., Ltd. Management Associate, Standard Foods Corporation Special Assistant to President, Sinon Corporation	Director, INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED	—	—	—
Associate VP	TW	Chueh-Ju Chen	Female	2024.02.01	342,604	—	391	—	—	—	M.S., Photonics, National Chiao Tung University Engineer, AUO Corporation	Director, Innocent Technology (Shenzhen) Ltd.	—	—	—
Associate VP	TW	Chiu-Lien Yang	Female	2024.02.01	263,635	—	—	—	—	—	Ph.D., Photonics, National Chiao Tung University Assistant Manager, Picvue Electronics Co., Ltd.	Director, best Epitaxy Manufacturing Company Ltd.	—	—	—
Associate VP	TW	Jun-Hao Peng	Male	2024.02.01	248,247	—	—	—	—	—	M.S., Technology and Engineering, National Taiwan Normal University Administrator, Winbond Electronics Corporation	Note 4	—	—	—
Associate VP	TW	Ching-Chien Chen	Female	2024.02.01	237,025	—	—	—	—	—	M.S., EMBA, National Sun Yat-sen University Master of Business Administration, The Chinese University of Hong Kong Office Clerk, Kaohsiung Hitachi Electronics Co.,Ltd.	—	—	—	—
Associate VP Corporate Governance Officer	TW	Chih-Huang Chang	Male	2024.06.01 (Note 5)	215,349	—	—	—	—	—	Master of Law, National Cheng Kung University Master of Structural Engineering, Graduate Institute of Civil Engineering, National Taiwan University Bachelor of Aerospace Engineering, National Cheng Kung University Huajing Technology Group/Huajing Technology (Stock) Co., Ltd. Group Legal Director ASE Group/ASE Semiconductor Corp. Group Legal Director and Group Legal and Intellectual Property Director Project Manager, AECOM Engineering Consultants Ltd.	—	—	—	—
Associate VP	TW	Yu-Fen Lin	Female	2025.07.01	302,478	—	—	—	—	—	Master of Business Administration, National Chiao Tung University Senior Engineer, United Microelectronics Corporation Senior Engineer, Macronix Corporation	Note 6	—	—	—
Financial Officer	TW	Wei-Cheng Chiu	Male	2023.02.15	168,159	—	—	—	—	—	Bachelor, Department of Accounting, Tamkang University Chief Financial Officer, Hong Kong Changlong Enterprises Co., Ltd. Accounting Officer, Hsin Chong Chemical Co., Ltd. Manager of Finance Department, Taiwan Cement Corporation	Note 7	—	—	—
Accounting Officer	TW	Rou-Li Cheng	Female	2023.02.15	95,141	—	—	—	—	—	Bachelor, Department of Accounting, Tamkang University Accounting Section Manager, Chi Mei Optoelectronics Corporation	Note 8	—	—	—

Note 1: Existing managerial officers as of the printed date of the annual report.

Note 2: Please refer to Note 3 on page 11 of this annual report.
Note 3: Director of the Indigenous Innovation Foundation, Director of GIO OPTOELECTRONICS CORP., (Representative) Director of Guanghe Technology Co., Ltd.
Note 4: Director, Innovative Creation Foundation, Supervisor, Innolux Japan Co., Ltd., Director InnoCare Optoelectronics Corporation (Representative)
Note 5: Head of corporate governance on June 1, 2024, Promoted to assistant manager on July 1, 2025.
Note 6: Director, Innolux Hong Kong Holding Limited (Representative), Director Innocom Technology Shenzhen Ltd. (Representative), Director Ningbo Innolux Optoelectronics Ltd. (Representative), Director Ningbo Innolux Display Ltd. (Representative), Director Foshan Innolux Optoelectronics Ltd. (Representative), Director Innoly Investment Corporation (Representative), Director Yuan Chi Investment Co., Ltd. (Representative)
Note 7: Director Ningbo Innolux Optoelectronics Ltd. (Representative), Director Ningbo Innolux Display Ltd. (Representative), Director Yuan Chi Investment Co., Ltd. (Representative)
Note 8: Supervisors Innolux Japan Co., Ltd., Supervisors Ningbo Innolux Optoelectronics Ltd., Supervisors Ningbo Innolux Display Ltd.

2.1.3 Where the chairperson and president or equivalent position (highest level executive officer) is the same person, the spouse, or a first-degree relative, provide information on the reason, reasonableness, necessity, and future improvement measures: Please refer to page 11, Note 12 of this annual report.

23 -

2.2 Remuneration of Directors, President, and Vice President

2.2.1 Remuneration to Directors and Independent Directors

Unit: NT$ thousand; thousand shares; %

Title	Name (Note 1)	Remuneration of Directors								Ratio of Total Remuneration (A+B+C+D) to Net Income (Loss) (%) (Note#)	Relevant Remuneration Received by Directors Who are Also Employees									Ratio of Total Remuneration (A+B+C+D+E+F+G) to Net Income (Loss) (%) (Note#)
		Base Remuneration (A) (Note 2)		Severance Pay (B)		Directors Remuneration (C) (Note 3)		Expenses and perquisites (D) (Note 4)				Salary, Bonuses, and Special Disbursement (E) (Note 5)		Severance Pay (F) (Note 6)		Employees Remuneration (G) (Note 7)
		The Company	The Company	All companies in the financial report	The Company	All companies in the financial report	The Company	All companies in the financial report	The Company	The Company	All companies in the financial report	The Company	All companies in the financial report	The Company		The Company		All companies in the financial report		The Company	All companies in the financial report	The Company	All companies in the financial report
														Cash amount	Stock amount	Cash amount	Stock amount	Cash amount	Stock amount
Chairman	Jin-Yang Hung	7,139	7,139	-	-	-	545	500	590	3.06	3.43	166,411	171,983	257	257	-	-	-	-	69.79	72.39	-
Corporate Directors	Innolux Education Foundation(Note 9)
Representative	Chu-Hsiang Yang (Note 10)
Director	Hung-Wen Yang(Note 9)
Director	Chi-Chia Hsieh(Note 11)
Director	Jyh-Chau Wang(Note 12)
Director	Ching-Lung Ting(Note 12)
Independent Director	Yong-Fen Hsieh(Note 9)	11,161	11,161	-	-	-	-	480	480	4.66	4.66	-	-	-	-	-	-	-	4.66	4.66	-
Independent Director	Chih-I Wu
Independent Director	Chih-Wei Wu
Independent Director	Hsin-Bei Shen
Independent Director	Feng-Kan Chang(Note 9)
Independent Director	Chi-Mo Huang(Note 12)

Please describe the policy, system, standard, and structure of remuneration to Independent Directors, and the correlation between duties, risk, and time input with the amount of remuneration: For the remuneration of Independent Directors, besides referring to results of Directors performance evaluations, the Remuneration Committee considers each Director's degree of participation and contribution to the Company's operations, links the reasonableness and fairness of performance and risks to remuneration, considers the Company's business performance and the remuneration standards of competitors, and makes recommendations to the Board of Directors in accordance with the Company's Articles of Incorporation.
Other than as disclosed in the above table, the remuneration earned by Directors providing services (e.g. providing consulting services as a non-employee) to the Company and all consolidated entities in the latest fiscal year: None.

Note 1: Please fill in the remuneration information of directors (including independent directors) who served in 2025.

Note 2: Refers to directors' base remuneration paid in 2025.

Note 3: The proposal of 2025 directors remuneration distribution has resolved by the Board of Directors.

Note 4: Refers to the relevant expenses and perquisites of directors in 2025.

Note 5: Refers to the salaries, bonuses and special disbursement, etc. received by employee directors in 2025.

Note 6: Refers to the amounts transferred to government authorities in 2025.
Note 7: The proposal of 2025 employee remunerations has resolved by the Board of Directors.
Note 8: Net income (loss) after tax refers to the net income (loss) after tax in the parent company only financial statements for the year ended December 31, 2025.
Note 9: The corporate directors of the Innolux Education Foundation, Director Hung-Wen Yang, Independent Director Yong-Fen Hsieh, and Independent Director Feng-Kan Chang were all re-elected at the shareholders' meeting on May 7, 2025, and took office on the same day.
Note 10: Chu-Hsiang Yang served as an individual director from January 1, 2025 to May 6, 2025. On May 7 of the same year, after a complete re-election at the shareholders' meeting, he assumed the position of representative of the Innolux Education Foundation
Note 11: Chi-Chia Hsieh served as an independent director from January 1, 2025 to May 6, 2025, and was appointed as a person director on the same day after the shareholders' meeting on May 7 of the same year, following a complete re-election.
Note 12: Stepped down on May 7, 2025, after being re-elected.

Range of Remuneration table

Range of Remuneration	Name of Directors
	Total (A+B+C+D)		Total (A+B+C+D+E+F+G)
	The Company	All companies in the financial report	The Company	All companies in the financial report
Less than NT$ 1,000,000	Innolux Education Foundation, Chu-Hsiang Yang, Hung-Wen Yang, Jyh-Chau Wang, Chin-Lung Ting, Chi-Mo Huang	Innolux Education Foundation, Chu-Hsiang Yang, Hung-Wen Yang, Chin-Lung Ting, Chi-Mo Huang	Innolux Education Foundation, Chi-Mo Huang	Innolux Education Foundation, Chi-Mo Huang
NT$1,000,000(inclusive) ~ NT$2,000,000(exclusive)	Chi-Chia Hsieh, Yong-Fen Hsieh, Feng-Kan Chang	Chi-Chia Hsieh, Jyh-Chau Wang, Yong-Fen Hsieh, Feng-Kan Chang	Chi-Chia Hsieh, Yong-Fen Hsieh, Feng-Kan Chang	Chi-Chia Hsieh, Yong-Fen Hsieh, Feng-Kan Chang
NT$2,000,000(inclusive) ~ NT$3,500,000(exclusive)	Chih-I Wu, Chih-Wei Wu, Hsin-Bei Shen	Chih-I Wu, Chih-Wei Wu, Hsin-Bei Shen	Chih-I Wu, Chih-Wei Wu, Hsin-Bei Shen	Chih-I Wu, Chih-Wei Wu, Hsin-Bei Shen
NT$3,500,000(inclusive) ~ NT$5,000,000(exclusive)	Jin-Yang Hung	Jin-Yang Hung	Chu-Hsiang Yang, Chin-Lung Ting,	Chin-Lung Ting,
NT$5,000,000(inclusive) ~ NT$10,000,000(exclusive)				Chu-Hsiang Yang,
NT$10,000,000(inclusive) ~ NT$15,000,000(exclusive)
NT$15,000,000(inclusive) ~ NT$30,000,000(exclusive)
NT$30,000,000(inclusive) ~ NT$50,000,000(exclusive)			Hung-Wen Yang, Jyh-Chau Wang,	Hung-Wen Yang, Jyh-Chau Wang,
NT$50,000,000(inclusive) ~ NT$100,000,000(exclusive)			Jin-Yang Hung,	Jin-Yang Hung,
NT$100,000,000 and above
Total	13	13	13	13

2.2.2 Remuneration of the President and Vice Presidents

Unit: NT$ thousand; thousand shares; %

Title	Name (Note 1)	Salary (A) (Note 2)	Severance Pay (B) (Note 3)	Bonuses and Special Disbursement (C) (Note 4)	Employee Remuneration (D) (Note 5)	Ratio of Total Remuneration (A+B+C+D) to Net Income (Loss) (%) (Note 6)	Remuneration Paid to the President and Vice Presidents from an Invested Company Other than the Company's Subsidiary
The Company	The Company	All companies in the financial report	The Company	All companies in the financial report	The Company	All companies in the financial report	The Company
Cash amount	Stock amount	Cash amount	Stock amount
Chairman & CEO	Jin-Yang Hung	35,398	35,398	575	575	177,795	177,795
President & COO	Hung-Wen Yang (Note 7)
President & COO	Chu-Hsiang Yang (Note 8)
Vice President	Chih-Ming Chen
Tai-Chi Pan
Ching-Wen Huang
Yu-Shui Guo (Note 9)
Yi-Long Lin (Note 10)

Note 1: The remuneration information of president and vice president who served in 2025.
Note 2: Refers to remuneration paid in 2025.
Note 3: Refers to the amounts transferred to government authorities in 2025.
Note 4: Refers to the salaries, bonuses and special disbursement, etc. in 2025.
Note 5: The proposal of 2025 employee remunerations has resolved by the Board of Directors.
Note 6: Net income (loss) after tax refers to the net income (loss) after tax in the parent company only financial statements for the year ended December 31, 2025
Note 7: Promotion on May 16, 2025.
Note 8: Dismissal on May 16, 2025.
Note 9: Promotion on June 20,2025
Note 10: Promotion on August 1,2025

Remuneration Bracket Table

Range of Remuneration	Name of the Presidents and the Vice Presidents
	The Company	All companies in the financial report
Less than NT$ 1,000,000
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive)
NT$2,000,000 (inclusive) ~ NT$3,500,000 (exclusive)
NT$3,500,000 (inclusive) ~ NT$5,000,000 (exclusive)	Chu-Hsiang Yang	Chu-Hsiang Yang
NT$5,000,000 (inclusive) ~ NT$10,000,000 (exclusive)	Chih-Ming Chen, Yi-Long Lin	Chih-Ming Chen, Yi-Long Lin
NT$10,000,000 (inclusive) ~ NT$15,000,000 (exclusive)	Yu-Shui Guo	Yu-Shui Guo
NT$15,000,000 (inclusive) ~ NT$30,000,000 (exclusive)
NT$30,000,000 (inclusive) ~ NT$50,000,000 (exclusive)	Hung-Wen Yang, Tai-Chi Pan, Ching-Wen Huang	Hung-Wen Yang, Tai-Chi Pan, Ching-Wen Huang
NT$50,000,000 (inclusive) ~ NT$100,000,000 (exclusive)	Jin-Yang Hung	Jin-Yang Hung
NT$100,000,000 and above
Total	8	8

27 -

2.2.3 Names and Distributions of Employee Profit-Sharing Remunerations to Managerial Officers
Due to a loss before income tax in the parent company only financial statements for 2025, the Company did not distribute remuneration to employees.

2.2.4 Comparison of Remuneration for Directors, Presidents, and Vice Presidents in the Most Recent Two Fiscal Years and Remuneration Policy for Directors, Presidents, and Vice Presidents

The ratio of total remuneration paid by the Company and by all companies included in the consolidated financial statements for the most recent two fiscal years to Directors, presidents, and vice presidents of the Company to the percentage of net income stated in the parent company only financial reports or individual financial reports.

Fiscal Year Item	Ratio of total remuneration paid to net income (loss)
	2024		2025
	The Company	All Companies in the consolidated financial statements	The Company	All Companies in the consolidated financial statements
Director	2.90	2.93	74.45	77.05
Presidents & Vice Presidents	3.37	3.37	85.59	85.59

The policies, standards, and packages, for the payment of remuneration, the procedures for determining remuneration, and its linkage to operating performance.

(1) Policies, standards and packages of remuneration of the Company

According to the Company's remuneration policy, the remuneration of Directors, the President and the Vice President shall be determined by the Remuneration Committee after considering the Company's operation performance, personal performance and responsibilities, and incorporating into the contributions and performance of sustainable corporate governance indicators of three aspects, economic, environmental, and social, as well as the relationship and rationality between the industry development trend and future operation risks, and by referring to the level of external remuneration market and similar positions in the industry; the Board of Directors shall comprehensively consider the amount of remuneration, payment method, etc. for a resolution.

(2) The procedure for determining remuneration, and its linkage to operating performance and future risk exposure.

The remunerations to directors and managerial officers are regularly evaluated based on the performance evaluation results obtained according to the "Rules for Evaluating Board of Directors and Functional Committee Performance" and the "Performance Management Regulations" applicable to managerial officers and employees, respectively. In addition, the remuneration to managerial officers is determined with reference to the "Managerial Officers Remuneration Regulations" and the operating performance indicators of the associates, including financial indicators such as annual revenue and EPS, and non-financial indicators such as ESG sustainable management results. Based on the recognition of representative sustainability-related awards at home and abroad (such as GCSA, TCSA, etc.) and the three major rankings of E, S, and G in the DJSI, 0~5% weighting is given by reviewing the performance to formulate a high-level remuneration, which will be reviewed by the Remuneration Committee and submitted to the Board of Directors for approval.

In addition, in accordance with Article 21 of the Company's Articles of Incorporation, the distribution of employees' remuneration shall not be lower than 5% of and the directors' remuneration shall not be higher than 0.1% of the current year pre-tax income before deducting the distributable employees' and directors' remuneration of the Company.

28 -

The Company allocates directors' and employees' remuneration based on the actual annual profit and the ratio specified in the Articles of Incorporation. The Remuneration Committee shall make a proposal after considering the industrial environment, the Company's operating conditions, as well as the directors', the president's and the vice president's responsibilities, contribution and goal achievement, and then submit it to the Board of Directors for resolution, and distribute the remuneration after reporting to the shareholders' meeting.

The reasonableness of the remuneration shall be reviewed by the Remuneration Committee and the Board of Directors, and the remuneration system shall be reviewed from time to time according to the actual business situation and relevant laws and regulations, so as to achieve a balance between the Company's sustainable operation and risk control.

2.3 Implementation of Corporate Governance

2.3.1 Operations of the Board of Directors

A total of 6 meetings of the Board of Directors were held in the previous period. Directors' attendance was as follows:

Title	Name	Attendance in Person	By Proxy	Attendance Rate (%)(Note)	Remarks
Chairman	Jin-Yang Hung	6	—	100.00%	Reelected
Corporate Directors	Innolux Education Foundation Representative : Chu-Hsiang Yang	4	—	100.00%	Newly elected
Director	Hung-Wen Yang	4	—	100.00%	Newly elected
Director	Chi-Chia Hsieh	5	1	83.33%	Former independent director transferred to be a Director
Independent Director	Yong-Fen Hsieh	3	1	75.00%	Newly elected
Independent Director	Chih-I Wu	6	—	100.00%	Reelected
Independent Director	Chih-Wei Wu	3	1	50.00%	Reelected
Independent Director	Hsin-Bei Shen	6	—	100.00%	Reelected
Independent Director	Feng-Kan Chang	4	—	100.00%	Newly elected
Director	Chu-Hsiang Yang	2	—	100.00%	Retired
Director	Jyh-Chau Wang	2	—	100.00%	Retired
Director	Chin-Lung Ting	2	—	100.00%	Retired
Independent Director	Chi-Mo Huang	2	—	100.00%	Retired

Note: The Company fully re-elected its directors on May 7, 2025 and the newly elected directors took office on the same day. The Board of Directors met two times before the re-election and four times after the re-election. The actual attendance (%) was calculated based on the number of Board meetings and the actual number of attendances during his/hers tenure.

Other items to be recorded:

I. If any of the following circumstances occur, the dates of the meetings, term, and motion contents, all independent directors' opinions and the Company's response should be specified:

(1) Matters referred to in Article 14-3 of the Securities and Exchange Act.

Total 7 meetings of the Board were held in the period from 2024 to the printed date of the annual report. For the resolutions please refer the pages 76-77 of the annual report. All independent directors did not object to the matters listed in Article 14-3 of the Securities Exchange Act and approved the resolution as presented.

(2) Other matters involving objections or expressed reservations by independent directors that were recorded or stated in writing that require a resolution by the Board of Directors : None.

II. If there are directors' avoidance of motions in conflict of interest, the directors' names, motion contents, reasons for avoidance of interests and voting should be specified:

Board Meetings	Directors' Name	Motion Contents	Reasons for avoidance of interests	Voting
13th meeting of the 9th term 2025.03.13	Chairman, Jin-Yang Hung Director, Chu-Hsiang Yang Director, Jyh-Chau Wang	Planned donation to the Crowdfunding Education Foundation	As the interest persons in this case, the directors evaded their interests in accordance with the law	Did not participate in discussion or voting
	Chairman, Jin-Yang Hung Director, Chu-Hsiang Yang Director, Jyh-Chau Wang Director, Chin-Lung Ting	Proposal for the 2024 remunerations to managerial officers and employee directors	As the interest persons in this case, the directors evaded their interests in accordance with the law	Did not participate in discussion or voting
	Chairman, Jin-Yang Hung Director, Chu-Hsiang Yang Director, Jyh-Chau Wang Director, Chin-Lung Ting	Proposal for the 2024 remunerations to managerial officers and employee directors	As the interest persons in this case, the directors evaded their interests in accordance with the law	Did not participate in discussion or voting
3rd meeting of the 10th term 2025.07.31	Director, Hung-Wen Yang	Proposal Manager Compensation	As the interest persons in this case, the directors evaded their interests in accordance with the law	Did not participate in discussion or voting
4th meeting of the 10th term 2025.11.07	Chairman, Jin-Yang Hung Director, Hung-Wen Yang	Proposal for the 2024 remunerations to managerial officers and employee directors	As the interest persons in this case, the directors evaded their interests in accordance with the law	Did not participate in discussion or voting
5th meeting of the 10th term 2025.07.31	Chairman, Jin-Yang Hung Director, Hung-Wen Yang	proposed compensation package for the company's managers for 2025.	As the interest persons in this case, the directors evaded their interests in accordance with the law	Did not participate in discussion or voting

III. Execution of Board Performance Evaluation:

Type	Evaluation Cycle	Evaluation Period	Evaluation Scope	Evaluation Method	Evaluation Content and Result
Self-evaluation	Once a year	2025.01.01-2025.12.31	Board of Directors, functional committees (including the Audit Committee, Remuneration Committee, and Corporate Governance and Nomination Committee) and individual directors	Self-evaluation of Board of Directors, functional committees (including the Audit Committee, Remuneration Committee and Corporate Governance and Nomination Committee) and individual directors	Evaluation items:
1. The evaluation of the Board as a whole: which should cover, participation in the Company’s operation; the Board's decision making quality; the composition and structure of the Boards; the election and continuing education of directors; and internal control.
2. Functional committees: which should cover participation in the Company’s operation; understanding of the duties of functional committees; the functional committees' decision-making quality; the composition of functional committees and the election of their members and internal control.
3. Individual directors: which should cover alignment of the goals and missions of the Company; understanding of the duties and responsibilities of directors; participation in the Company’s operation; management of internal

Type	Evaluation Cycle	Evaluation Period	Evaluation Scope	Evaluation Method	Evaluation Content and Result
					relationships and communications; professionalism and continuing education; and internal control.
Evaluation results:
The evaluation results are divided into five levels: very poor (strongly disagree), poor (disagree), moderate (average), good (agree) and excellent (strongly agree). The internal self-evaluation results of the Company's “Board of Directors”, “Board Members”, “Audit Committee”, “Remuneration Committee” and “Corporate Governance and Nomination Committee” are good, good, good, good, and excellent, respectively, which sufficiently indicate that the Company's Board of Directors and functional committees are operating outstandingly.
External Evaluation	Once every three years	2025.01.01~2025.12.31	Board Meeting	Evaluation by surveys, documentation review, and field interview	Evaluation content:
The evaluation was conducted by surveys, documentation review, and field interview from four aspects of the professional functions of the Board (the composition and structure of the Board members, the election and appointment of directors and continuous education), the decision functions of the Board (the degree of participation in the Company's operations, and the improvement of the decision-making quality of the Board), the level of emphasis on internal control and supervision, and the Board's attitude towards sustainable management.
Evaluation results:
1. The Board of Directors comprises diverse members, whose professional expertise enables comprehensive advice to the Company. Independent directors represent more than half of the board seats, facilitating effective external oversight and checks-and-balances. Nevertheless, the gender balance among board members remains somewhat uneven.
2. Communication among board members is effective. In addition to formal meetings, the Company has established additional communication channels for substantive discussions on operational status, development trends, and risk assessments.

31 -

Type	Evaluation Cycle	Evaluation Period	Evaluation Scope	Evaluation Method	Evaluation Content and Result
					3. The internal audit system functions soundly. Potential risks including geopolitical risks and green energy trends have been identified, with regular evaluation and formulation of corresponding response measures.
4. The Board of Directors has established a “Corporate Governance and Nominating Committee”, which will strengthen talent retention programs and succession planning.
The key recommendations are as follows: Enhance gender diversity on the Board; Encourage the establishment of non-statutory functional committees such as a Risk Management Committee and sustainability-related committees; Strengthen the independence of the whistleblower receiving unit.
In response to the above recommendations, the Company will discuss and formulate a plan, including carefully evaluating the list of director candidates when re-election in the future, and incorporating gender elements into the evaluation, so as to make the composition of the Board more diverse and help introduce different values, and strengthen the Board diversity; The Company will implement measures to strengthen the independence of the whistleblower receiving unit and gradually improve relevant institutional designs, thereby enhancing internal whistleblowers’ trust in the whistleblowing system.
In the future, we will evaluate the necessity for Risk Management Committee and Sustainability Committee in accordance with legal requirements or practical needs, further improve the supervision function and management function of the Company, and continuously strengthen corporate governance and sustainable management.

32 -

IV. Targets for strengthening of the functions of the Board during the current and immediately preceding fiscal years (e.g. establishing an audit committee and enhancing information transparency) and the implementation status evaluation:

(1) The Board of Directors shall direct the Company’s strategy, supervise the management team, be responsible to the Company and shareholders’ meeting, and make arrangements for the various operations and arrangements of the Company’s governance system to ensure that it exercises its authorities in accordance with laws and regulations, the Company’s Articles of Incorporation or the resolutions of the shareholders’ meeting.

(2) The Company has established an Audit Committee on July, 2016 to exercise the authorities required by the Securities and Exchange Act, the Company Act and other laws and regulations to assist the Board of Directors in supervising the Company’s quality and integrity in the implementation of relevant accounting, auditing, financial reporting procedures and financial control. Please see pages 34-35 for the detail of the Audit Committee’s operation.

(3) The Company has established Remuneration Committee on August, 2011 and set up standard for the directors and managers. The Remuneration Committee is also in charge of making regular review of performance of the directors and managers, and the related remuneration policy, system, standard, and structure. Please see pages 46-47 for the detail of the Remuneration Committee’s operation.

(4) The Company established the Corporate Governance and Nominating Committee in February 2025. Pursuant to the authorization of the Board of Directors, the Committee shall perform its responsibilities faithfully with the care of a prudent manager, so as to enhance the functioning of the Board and strengthen the Company’s management mechanisms. For details on the implementation status of the Corporate Governance and Nominating Committee, please refer to pages 47-48 of this annual report.

(5) The Company has re-elected its Board of Directors at extraordinary general meeting on May 7, 2025. The new Board is made of 9 Board members, including 5 independent directors. All non-independent directors are held by natural persons, and independent directors exceed half of Board members, thus strengthening the Board function and corporate governance.

(6) The Board members continuing education extending beyond the scope of the professional expertise of the Directors, and to select courses encompassing corporate governance related topics such as finance, risk management, business, commerce, legal affairs, accounting, and sustainable development, or courses relating to internal control systems or liability for financial reports to enhance the awareness and implementation of corporate governance by Board members. Please see pages 71-72 for the detail of the status of directors’ participation in corporate governance related courses and trainings.

V. Attendance of independent directors at 2025 Board Meetings

Board Meetings	Chi-Chia Hsieh(Note)	Chih-I Wu	Chih-Wei Wu	Hsin-Bei Shen	Chi-Mo Huang(Note)	Yong-Fen Hsieh(Note)	Feng-Kan Chang(Note)
12th meeting of the 9th term 2025.02.17	Attend in person	Attend in person	Attend in person	Attend in person	Attend in person	—	—
13th meeting of the 9th term 2025.03.13	Attend in person	Attend in person	Attend in person	Attend in person	Attend in person	—	—
1st meeting of the 10th term 2025.05.07	—	Attend in person	By Proxy	Attend in person	—	Attend in person	Attend in person
2nd meeting of the 10th term 2025.05.15	—	Attend in person	ForLeave	Attend in person	—	By Proxy	Attend in person

Board Meetings	Chi-Chia Hsieh(Note)	Chih-I Wu	Chih-Wei Wu	Hsin-Bei Shen	Chi-Mo Huang(Note)	Yong-Fen Hsieh(Note)	Feng-Kan Chang(Note)
3rd meeting of the 10th term 2025.07.13	—	Attend in person	ForLeave	Attend in person	—	Attend in person	Attend in person
4th meeting of the 10th term 2025.11.07	—	Attend in person	Attend in person	Attend in person	—	Attend in person	Attend in person

Note : The Company fully re-elected its directors on May 7, 2025, and the newly elected directors took office on the same day. Independent Director Chi-Chia Hsieh was transferred to be a Director, Independent Director Chi-Mo Huang retired, and Independent Directors Yung-Fen Hsieh and Feng-Kan Chang were newly elected.

2.3.2 Operations of the Audit Committee

A total of 5 audit committee meetings were held in the previous period. The attendance of the independent directors was as follows:

Title	Name	Attendance in Person	By Proxy	Attendance Rate (%)(Note)	Remarks
Independent Director	Chi-Chia Hsieh	1	—	100.00%	Former independent director transferred to be a Director
Independent Director	Chih-I Wu	5	—	100.00%	Reelected
Independent Director	Chih-Wei Wu	2	1	100.00%	Reelected
Independent Director	Hsin-Bei Shen	5	—	40.00%	Reelected
Independent Director	Yong-Fen Hsieh	3	1	100.00%	Newly elected
Independent Director	Feng-Kan Chang	4	—	75.00%	Newly elected
Independent Director	Chi-Mo Huang	4	—	100.00%	Retired

Note : The Company fully re-elected its directors on May 7, 2025, and the newly elected directors took office on the same day. The Audit Committee met one time before the re-election and four times after the re-election. The actual attendance (%) was calculated based on the number of the Audit Committee meetings and the actual number of attendances during his/hers tenure.

Other items to be recorded:

I. The annual work focus and authority of the audit committee

(1) The main function of the Audit Committee is to supervise the following matters:

The fair presentation of the financial reports of the Company.
The hiring (and dismissal), independence, and performance of the certificated public accountants.
The effectiveness of the implementation of the internal control system of the Company.
The compliance with relevant laws and regulations by the Company.
The management of the existing or potential risks of the Company.

(2) The powers of the Committee are as follows:

The adoption of or amendments to the internal control system pursuant to Article 14-1 of the Securities and Exchange Act.
Assessment of the effectiveness of the internal control system.
The adoption of or amendments to, pursuant to Article 36-1 of the Securities and Exchange Act, the procedures for handling financial or business activities of a material nature, such as acquisition or disposal of assets, engaging in derivatives trading, loaning funds to others, and endorsements or guarantees for others.
Matters in which a director is an interested party.
Asset transactions or derivatives trading of a material nature.
Loans of funds, endorsements, or provision of guarantees of a material nature.
The offering, issuance, or private placement of equity-type securities.
The hiring or dismissal of a certified public accountant, or their compensation.
The appointment or discharge of a financial, accounting, or internal audit officer.

Annual and quarterly financial reports, which are signed or sealed by the chairperson, managerial officer, and accounting officer.
Other material matters that may be required by the Company or by the competent authority.

II. If any of the following circumstances occur, the dates of Board meetings, term, motion contents, resolutions of the audit committee and the Company's response to the audit committee's opinion should be specified:

(1) Matters referred to in Article 14-5 of the Securities and Exchange Act.

Board Meetings	Motion Contents	Resolution of the Audit Committee	The Company's response to the members' opinions
13th meeting of the 9th term 2025.03.13	1. 2024 Business Report and Financial Statements of the Company
2. Proposal of the 2023 Earnings Distribution Table
3. The appointment, remuneration, and assessment of the independence and competency of CPAs
4. Proposal of the Company's 2023 Internal Control System Statement
5. Application for listing on an overseas securities market by the company's subsidiary, CarUX Holding Limited
6. Reduction of the company's cumulative shareholding in its subsidiary, CarUX Holding Limited ("CarUX"), which has exceeded 10%
7. Proposed donation to the Indigenous Innovation Education Foundation	Approved by all committee members present as proposed	Approved by all directors present as proposed
2nd meeting of the 10th term 2025.05.15	1. Review the financial statements for the first quarter of 2024
2. Scope of frontline employees and revisions to certain clauses of the company's internal control system.
3. The company's audit committee's prior approval of the certification accounting firm and its affiliates to provide non-assurance services to the company and its subsidiaries.(non-assurance services)	Approved by all committee members present as proposed	Approved by all directors present as proposed
3rd meeting of the 10th term 2025.07.31	1. Consolidated financial statements of the Company for the second quarter of 2025	Approved by all committee members present as proposed	Approved by all directors present as proposed
4th meeting of the 10th term 2025.11.07	1. Consolidated financial statements of the Company for the third quarter of 2025
2. Proposal of 2026 Audit plan	Approved by all committee members present as proposed	Approved by all directors present as proposed

(2) Other matters which were not approved by the audit committee but were approved by two-thirds or more of all directors: None.

III. If there are independent directors' avoidance of motions in conflict of interest, the independent directors' names, motion contents, reasons for avoidance of interests and voting should be specified: None.

IV. Communications between the independent directors, the Company's chief internal auditor and the CPAs:

(1) Communication between independent directors and chief internal auditor:

The independent directors of the Company and the chief internal auditor shall meet regularly at least once a quarter and submit the audit report and deficiency tracking report for the previous month by the end of each month to report on the implementation status of the Company's annual audit plan and the improvement of internal control deficiency tracking; a meeting may be convened at any time in case of material unusual matters.

(2) The 2025 major matters of the communications between independent directors (audit committee) and chief internal auditor

Date	Descriptions of the major matters	Resolution
2025.01.03	December 2024 Audit Report was submitted to independent directors for review	No objection
2025.02.06	January 2025 Audit Report was submitted to independent directors for review	No objection
2025.03.13	1. Report on the implementation of the audit plan for the fourth quarter of 2024	1. No objection
Audit Committee	2. Statement of Internal Control System for 2024	2. After review and submit to the Board for resolution
2025.03.17	February 2025 Audit Report was submitted to independent directors for review	No objection
2025.04.09	March 2025 Audit Report was submitted to independent directors for review	No objection
2025.05.15	Report on the implementation of the audit plan for the first quarter of 2025	No objection
Audit Committee	April 2025 Audit Report was submitted to independent directors for review	No objection
2025.06.12	May 2025 Audit Report was submitted to independent directors for review	No objection
2025.07.04	June 2025 Audit Report was submitted to independent directors for review	No objection
2025.07.31	Report on the implementation of the audit plan for the second quarter of 2025	No objection
Audit Committee	July 2025 Audit Report was submitted to independent directors for review	No objection
2025.08.06	August 2025 Audit Report was submitted to independent directors for review	No objection
2025.09.04	September 2025 Audit Report was submitted to independent directors for review	No objection
2025.10.03	September 2025 Audit Report was submitted to independent directors for review	No objection
2025.11.07	Report on the implementation of the audit plan in the third quarter of 2025	No objection
Audit Committee	October 2025 Audit Report was submitted to independent directors for review	No objection
2025.12.04	November 2025 Audit Report was submitted to independent directors for review	No objection

(3) Communication between independent directors (Audit Committee) and the CPAs:

The Company's independent directors and CPAs meet regularly at least once a quarter. The CPAs discuss the results of the audit/review of the Company's financial reports at the Audit Committee meeting, and communicate fully with the Company regarding whether the amendments to laws have any material impact on the Company.

(4) The 2025 major matters of the communications between independent directors (Audit Committee) and the CPAs:

Date	Attendees	Descriptions of the major matters	Resolution
2025.03.13 Separate meeting before the Audit Committee meeting	Independent Director, Chi-Chia Hsieh Independent Director, Chih-I Wu Independent Director, Chih-Wei Wu Independent Director, Hsin-Bei Shen Independent Director, Chi-Mo Huang CPA, Sheng-Chung Hsu CPA, Yung-Chih Lin	The audit results of the 2024 parent company only financial statements and consolidated financial statements	No objection
2025.05.15 Separate meeting before the Audit Committee meeting	Independent Director, Chih-I Wu Independent Director, Hsin-Bei Shen Independent Director, Feng-Kan Chang CPA, Yung-Chih Lin	The review results of the 2025 first quarter of the financial statements.	No objection
2025.07.31 Separate meeting before the Audit Committee meeting	Independent Director, Chih-I Wu Independent Director, Yong-Fen Hsieh Independent Director, Hsin-Bei Shen Independent Director, Feng-Kan Chang CPA, Sheng-Chung Hsu CPA, Yung-Chih Lin	The review results of the 2025 second quarter of the financial statements.	No objection
2025.11.07 Separate meeting before the Audit Committee meeting	Independent Director, Chih-I Wu Independent Director, Yong-Fen Hsieh Independent Director, Chih-Wei Wu Independent Director, Hsin-Bei Shen Independent Director, Feng-Kan Chang CPA, Yung-Chih Lin	1. The review results of the 2025 third quarter of the financial statements 2. Communication of 2025 Audit Plan and Key Audit Matters with CPA	No objection

2.3.3 Corporate Governance Implementation Status and Deviations from “the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies”

Evalutaion Item	Implementation Status			Deviations from “the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
1. Does the Company establish and disclose the Corporate Governance Principles based on “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies”?	V		The Company has enacted Corporate Governance Principles in order to protect the rights and interests of shareholders, strengthen the powers of the Board of Directors, respect the rights and interests of stakeholders and enhance information transparency. The Company’s “Corporate Governance Principles” please refer to the official website.	No significant difference compared to Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
2. Shareholding structure & shareholders’ rights
(1) Does the Company establish an internal operating procedure to deal with shareholders’ suggestions, doubts, disputes and litigations, and implement based on the procedure?
(2) Does the Company possess the list of its major shareholders as well as the ultimate owners of those shares?
(3) Does the Company establish and execute the risk management and firewall system within its conglomerate structure?
(4) Will the Company set up internal norms to prohibit insiders from utilizing the undisclosed information to trade securities?	V		(1) The Company has enacted the Procedures for Handling Material Inside Information and has, besides, set up spokesperson and acting spokesperson to take charge of proposals or disputes from shareholders.
(2) The Company is in a position to dominate the name lists of the key shareholders and the terminal controllers of the key shareholders and has disclosure in accordance with legal requirements.
(3) The Company has duly enacted the Regulations Governing Transaction with Related Parties, Regulations Governing Supervision over Subsidiaries and has, besides, set up relevant departments with sound mechanisms to evaluate and monitor potential risks with affiliated enterprises.
(4) The Company has duly acted the Procedures for Handling Material Inside Information and Code of Ethics for Directors and Officers and further in accordance with the Company’s internal control system, enacted Operating Procedures to Prevent Inside Trading and Management over Major Information to ban insiders from trading securities by taking advantage of the information which has not yet been made public in the market.	No significant difference compared to Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
3. Composition and Responsibilities of the Board of Directors
(1) Whether the Board of Directors has formulated diversity policy and specific management objectives, and implemented such policy?	V		(1) The Company stipulates guidelines for diversity in its Corporate Governance Principles to strengthen the function of the Board of Directors. The nomination and election of the Board of Directors of the Company is in accordance with the provisions of the Company’s Articles of Incorporation. In addition to assessing	No significant difference compared to Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies

37 -

Evaluation Item	Implementation Status			Deviations from “the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
(2) Does the Company voluntarily establish other functional committees in addition to the Remuneration Committee and the Audit Committee?	V		the qualifications of each candidate's academic experience, and taking into account the opinions of interested parties, the Company’s Election Rules of Directors and Corporate Governance Principles are adhered to. To ensure the diversity and independence of the Board members. Please refer to on pages 18-20 of this annual report for the Company’s implementation of the diversification policy.
(3) Does the Company establish standards and method for evaluating Board performance, conduct annual performance evaluations, submit performance evaluation results to the Board, and use the results as a basis for determining the remuneration and nomination of individual directors?	V		(2) The Company has set up the Audit Committee, a Remuneration Committee and a Corporate Governance and Nomination Committee in accordance with regulations. Other functional committees will be established based on future operational needs.
(4) Does the Company regularly evaluate the independence of CPAs?	V		(3) The Board of Directors of the Company passed the Rules for Evaluating Board of Directors Performance on November 8, 2019, which stipulates that the Board of Directors shall perform performance evaluations for the Board of Directors, Board members, Remuneration Committee and Audit Committee at least once a year. Execution of Board performance evaluation, please refer to pages 30-32 of this annual report. The results of the performance evaluation were reported to the Board of Directors on March 10, 2026, and used as a basis for determining the remuneration and nomination of individual directors.
			(4) The Company’s Audit Committee and Board of Directors evaluate the independence and competency of the CPAs every year, based on the evaluation standards and reference audit quality indicator (AQI) in note 1 on page 44 of this annual report. The performance is evaluated in 5 major aspects and 13 indicators including professionalism, quality control, independence, supervision and innovation ability. The CPA is confirmed to be independent of the Company and can provide the Company with financial report auditing certification, as well as various financial, accounting, and tax consulting services. The evaluation results of the most recent year have been discussed and approved by the Audit Committee on March 10, 2026, and submitted to the Board of Directors, who approved a resolution on March 10, 2026 to evaluate the independence and competency of CPAs.
4. Does the Company have a suitable number of competent corporate governance	V		On April 19, 2024, the Board of Directors resolved to appoint Effective June 1, 2024 Legal Affairs Director Chih-Huang Chang as the Corporate Governance Officer to	No significant difference compared to Corporate

38 -

Evalutaion Item	Implementation Status
	Yes	No	Abstract Illustration
personnel, and has it appointed a corporate governance officer responsible for corporate governance matters (including but not limited to providing information for directors and supervisors to perform their duties, assisting directors and supervisors with regulatory compliance, handling matters related to Board meetings and shareholders’ meetings, and making minutes for Board meetings and shareholders’ meetings)?			be responsible for supervision and planning of the corporate governance. His qualification meets the requirements of paragraph 1, Article 3-1 of the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies.
The affairs of the corporate governance officer include:
1. Handling of matters relating to board of directors meetings and shareholders meetings in compliance with law.
2. Preparation of minutes of the board of directors meetings and shareholders meetings.
3. Assistance in onboarding and continuing education of the directors
4. Provision of information required for performance of duties by the directors
5. Assistance in the directors' compliance of law
6. Reporting to the board of directors of its examination results as to whether the qualifications of independent directors upon their nomination and election and during their tenure conform to applicable laws and regulations
7. Addressing matter pertaining of changes of directors.
8. Other matters described or established in the articles of incorporation or under contract.
Report the operation of corporate governance to the Board of Directors on a regular basis every year. The detail of completed item in 2025 list as below, and is reported to the Board of Directors on March 10, 2026:
1. The Company held 6 Board meetings, 5 Audit Committee meetings and 4 Remuneration Committee meetings and 2 Corporate Governance and Nomination Committee in 2025.
2. Held 1 annual general shareholders’ meeting in 2025.
3. Assisted board members in developing annual continuing education plans and arranging continuing education courses. All the members of Board of Directors completed at least 6 hours of continuing education courses in 2025.
4. The Company maintains D&O insurance for its directors and key officers and report to the Board meeting.
5. Regularly communicate with independent directors and CPAs about the Company’s financial and business situation. Please refer to pages 36 of annual report and our website (http://www.innolux.com) for communication.
6. The agenda and meeting materials of Board meeting mail/send to all directors 7	Governance Best Practice
Principles for TWSE/TPEx Listed Companies

39 -

Evaluation Item	Implementation Status			Deviations from “the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
			days before of the Board meeting and remind in advance if the issues require interest avoidance, and finished the meeting minutes in 20 days after the meeting.
7. Booking the date of AGM, prepare meeting notice, meeting agenda and minutes within the statutory time limit, and handle change registration matters in the amendment of the Articles of Incorporation or the re-election of directors.
8. The internal performance evaluation of the Board of Directors and functional committees was conducted. For the evaluation results of the Board of Directors, the Audit Committee, the Remuneration Committee and their individual members, please refer to pages 30-32 of this annual report and the Company's website (http://www.innolux.com).
9. Please refer to page 73 of annual report for the training situation of corporate governance officer.
5. Does the Company establish a communication channel and build a designated section on its website for stakeholders (including but not limited to shareholders, employees, customers, and suppliers), as well as handle all the issues they care for in terms of corporate social responsibilities?	V		The Company’s stakeholders include employees, customers, shareholders/investors, suppliers/contractors/outsourcers, governments/associations, and society (schools, communities, media, non-governmental organizations), etc.
Relevant communication channels include the “Investor,” “Customer/Supplier Systems,” “Products & Tech” area set up on the Company’s official website, as well as mailboxes for media contact, anti-corruption reporting ([email protected]), and corporate social responsibility ([email protected]).
The Company annually reports to the Board of Directors on issues of concern to stakeholders, communication channels, and methods of response. The communication status of all stakeholders in 2024 was reported to the Board of Directors on March 10, 2026. The issues of stakeholders please refer the annual report pages 44-45 Note 2.	No significant difference compared to Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
6. Does the Company appoint a professional shareholder service agency to deal with shareholder affairs?	V		The Company mandates Registrar & Transfer Agency Department of Grand Fortune Securities Co., Ltd. to be the Company’s shareholder services agent, and to handle the affairs related to the shareholders’ meeting.	No significant difference compared to Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
7. Information Disclosure
(1) Does the Company have a corporate	V		(1) Through the Company’s website (http://www.innolux.com) we provide	No significant difference compared to Corporate

40 -

Evaluation Item	Implementation Status
	Yes	No	Abstract Illustration
website to disclose both financial standings and the status of corporate governance?
(2) Does the Company have other information disclosure channels (e.g. building an English website, appointing designated people to handle information collection and disclosure, creating a spokesman system, webcasting investor conferences)?
(3) Does the Company announce and report annual financial statements within two months after the end of each fiscal year, and announce and report Q1, Q2, and Q3 financial statements, as well as monthly operation results, before the prescribed time limit?	V	V	financial, business, and corporate governance information and keep updating.
(2) The Company’s English website announces information and our Stock Administration Department and Strategic Relations and Communications Division, responsible for collecting and disclosing the related information also set up positions for its spokesperson and acting spokesperson in accordance with the regulations and the Company provides Investor Conference report on the official website.
(3) The Company’s annual, first, second, and third quarter financial reports and monthly operating status were all published and reported within the time limits stipulated by law.	Governance Best Practice Principles for TWSE/TPEx Listed Companies
8. Is there any other important information to facilitate a better understanding of the Company’s corporate governance practices (e.g., including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, Directors’ training records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies, and purchasing insurance for Directors)?
(1) Employee’s Rights
Please refer to pages 110 “IV. Operational Highlights – 4.5 Labor Relations” of the annual report.
(2) Employee Care
The Company knows very well that employees are the cornerstone of sustainable growth and does not lag behind in caring for its employees. It adopts an integrated service model and collaborates with external professional EAP teams to provide unlimited 0809 toll-free hotlines, with the Company covering the associated fees. Additionally, we offer 24-hour Chinese and English language services, and also provide free one-on-one counseling services for all foreign colleagues, along with arranging a trustworthy protection mechanism.
The Company actively cares for the physical, mental and spiritual health of employees, organizes leisure and recreational activities, promotes employee club activities, and optimizes programs for food, housing, transportation, and recreation, so that employees can enjoy a healthy and balanced life while after work. In addition, to improve employees’ health awareness, the Company conducts regular health checkups and provides employee health consultations every year. In response to occupational disasters, major injuries and illnesses, and major natural disasters, a sympathy and care mechanism will be launched. The recipients of sympathy include injured colleagues and their families. We will assist them in the application for labor, health, and group insurance.
In order to ensure the well-being of female employees, and in accordance with the labor regulations of the locality of the plant, the implementation of the maternity leave pay allowance, the strengthening of the fetus rest and the family care leave, etc., for the female employees of pregnancy, implement the health risk assessment, adjust the work as

41 -

Evaluation Item	Implementation Status			Deviations from “the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
needed. Under the principle of maternity protection and employment equal rights, create a friendly working environment for female employees.

(3) Investor relations, the rights of suppliers and stakeholders
According to different interested groups, the Company has established multiple and unobstructed communication channels, such as setting up a stakeholders area on the Company’s webpage, so that we can keep communicating and getting feedback from those interests groups’ needs and expectations.
1. Employees:
Establish communication channels such as employee care hotline, employee care mailbox, APP-Employee Assistance Programs (EAPs), mobilization meeting communication meeting, government decrees on the system, labor-management meetings, job welfare meetings, seminars for various departments and satisfaction surveys, etc.
2. Customers:
We have salespeople and customer service units to reply to customers’ demands effectively, establish a volume of customer (VOC) system, monitor the progress of handling issues, field audits and questionnaire feedback, and customers’ satisfaction survey.
3. Shareholders/Investors:
The Company treats our shareholders with the principle of fairness and openness. We call the shareholders meetings according to the Company Act and other related laws every year, encourage stockholders to actively participate in the stockholders meeting with proposals and questions.
4. Suppliers:
Setting up an interactive platform for supplier purchasing and procurement management, and a buyer and procurement management department to host regular biweekly/monthly quality meetings with suppliers, and annual supplier conferences, and provide anti-corruption reporting mailboxes.
5. Society (communities, media, non-governmental organizations / non-profit organizations):
There are full-time departments to respond in a timely manner, and the media contact mailboxes and telephones to respond by specified personnel, issue press releases and statement from time to time, and hold press conferences. The Company also has Facebook and Instagram fan pages of “Innolux ESG DNA”, where it publishes company-related news from time to time.

(4) Continuing education for directors
The Company’s directors have both professional background and practical experience. The Company arranges continuing education for directors and every year. For the continuing education for directors in the latest year and as of the publication date of annual report, please refer to pages 71-72 of this annual report.

(5) Implementation of risk management policies and risk measurement standards
The Company follows the Risk Management Policy and Procedures approved by the Board of Directors in 2020. Define various risks according to the overall operating policy, establish management procedures for early identification, accurate measurement, effective supervision and strict control, and regularly review relevant finance, regulations, climate change, water and electricity resources, industrial supply chain, cyber security and occupational safety and health, and other aspect risks. Take appropriate measures to prevent possible losses, and timely adjust and improve the best risk management practices based on changes in the internal and external environment to reduce the impact of risks on operations and create a more resilient operating environment. The implementation of risk management policies and risk measurement standards in 2025 was reported to the Audit Committee and the Board of Directors on March 10, 2026, and disclosed on the Company’s website.
The risk management process mainly includes risk identification, risk assessment and risk response. | | | | |

42 -

43 -

Evaluation Item	Implementation Status
	Yes	No	Abstract Illustration
Risk identification: Identify relevant risk items according to regulations, industry standards and international development trends.
Risk assessment: The degree of risk is comprehensively considered according to the severity and frequency of occurrence.
Risk response: According to the degree of risk, formulate control measures and response plans. The criteria for evaluating control plans generally include effectiveness, feasibility and cost.
(6) The implementation of customer policy
In order to meet customer requirements and strive to exceed their expectations, the Company implements good products and services that combine software and hardware for terminal needs. Supplementing with intelligent tools and employing intelligent, flexible decision-making to adjust directions appropriately, we can continue to create a win-win situation among the Company, suppliers, and customers, collaboratively establishing a sustainable operating environment.
The Company attaches importance to the confidentiality and privacy of customer information, and establishes a complete information collection system, coupled with intelligent analysis and diagnosis to quickly drive improvements and satisfy customer needs, accurately predict customer rankings, and achieve customer satisfaction that is in the interests of the Company through risk warning with quality indicators and in-depth retaining customer relationships, to become a value-creating information center.
In addition, in-depth analyzes customers’ requirements and expectations through customer satisfaction survey annually. Customers can report issues through onsite check and expect technical personnel on business trips to promptly and effectively address them. Task Force Team is established for major incidents to continuously improve shipment quality and simultaneously cooperate with customers to implement quality improvement projects, thereby improving customer satisfaction.
(7) Purchase of liability insurance for Directors: The Company has purchased liability insurance for its directors.
9. Please explain the improvements which have been made in accordance with the results of the Corporate Governance Evaluation System released by the Corporate Governance Center, Taiwan Stock Exchange, and provide the priority enhancement measures for those unimproved:
The Company has set up its “Corporate Governance Principles” according to the revised Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies by the Taiwan Stock Exchange Corporation (TWSE). The Company has been working hard on sustainable economy, environment, and society and fulfilling long-term and sustainable responsibility to individual stakeholders and the whole society based on business core value of honesty and integrity.
The areas that require immediate improvement are described below:
Evaluation Indicators			Priority items to be improved and measures
Has the Company established a board-level Sustainability Committee with at least three members, each equipped with professional knowledge and capabilities in corporate sustainability, and with at least one director participating in oversight? Are the committee’s composition, responsibilities and operations disclosed?			The Company will evaluate the necessity for Sustainability Committee in accordance with legal requirements or practical needs, further improve the supervision function and management function of the Company, and continuously strengthen corporate governance and sustainable management.

Note 1: Evaluation form of the independence of CPAs

No.	Evaluation Item	Results
1	No major financial interested relationship with the client.	■ Yes □ No
2	Avoiding any improper relationship with the client.	■ Yes □ No
3	The accountant should supervise their assistants to strictly comply with honesty, justice and independence.	■ Yes □ No
4	The accountant is prohibited from auditing certification for the Company’s financial report where he/she served in within the previous two years.	■ Yes □ No
5	The accountant’s identification is forbidden to be infringed by another individual.	■ Yes □ No
6	The accountant does not hold any shares in the Company or in its subsidiaries.	■ Yes □ No
7	The accountant does not owe any debt to the Company	■ Yes □ No
8	The accountant is not in any joint investment or benefit-sharing relationship with the Company or its subsidiaries.	■ Yes □ No
9	The accountant is not employed and paid regularly by the Company or its subsidiaries.	■ Yes □ No
10	The accountant does not receive any commission which is occupational-related.	■ Yes □ No
11	The accountant is subject to disciplinary actions does not over 7 years or returning does not less than 5 years.	■ Yes □ No
12	The accountant audit experience obtain the Electronic industry.	■ Yes □ No

Note 2: The concerned issues of stakeholders, communication channel and response method

Stakeholder	Concerned issues	Major Communication Channel, Response Method, Frequency	Result in 2025
Employees	Recruitment and staffing
Human rights
Talent development and training
Occupational health and safety
Diversity and equality
Ethical corporate management	Communication channel:
Labor-management meeting: quarterly
Unit meeting: irregularly
Satisfaction survey: irregularly
Care hotline and employee care Mailbox: irregularly
APP-Employee Assistance Programs (EAPs): irregularly
Contact person: DEI & ER Department, [email protected], 06-5051888#67885	1. 202 labor-management meetings
2. 1,058 internal communication cases
Customers	Innovative research and development
Customer Relationship Management
Cyber Security
Supply chain management
Ethical corporate management
Sustainable Manufacturing	Communication channel:
Customer meeting: irregular: biweekly
Customer complaint handling and review: monthly
Voice of customer (VOC): quarterly
Customer satisfaction survey analysis: yearly
Customer auditing: irregular
Contact person: Ms. Hsiao, [email protected], 06-5051888#62561
Business Services
Please refer to the official website for technical cooperation contact person.
https://www.innolux.com/tw/contacts.html	1. Over 20 large-scale customer cooperative development and quality conferences
2. Over 150 VIP customers audit conferences of quality result
3. Over 2,500 routine communication meeting

Stakeholder	Concerned issues	Major Communication Channel, Response Method, Frequency	Result in 2025
Shareholders/Investors	Ethical corporate management
Financial performances
Risk management
Sustainable Manufacturing
Cyber Security
Innovative research and development	Communication channel:
AGM: yearly
Institutional investor conference: half-yearly
Investor Forum: quarterly
Annual report and ESG report: yearly
Investors/Analysts conference: irregularly
Investors’ hotline and mailbox: irregularly
Releasing material information on MOPS: irregularly
Contact person:
Investor Relations: Ms. Chen, [email protected], 06-5053760
Stock Affairs: Ms. Chen, [email protected], 037-586000#63588	1. 1 annual general shareholders’ meeting
2. 2 institutional investor conferences
3. 10 investor forums organized by securities firms
4. More than 30 investors and analysts communication conference
5. More than 100 hotline and mailbox response
Suppliers/Contractors/Outsourcers	Ethical corporate management
Customer Relationship Management
Innovative research and development
Occupational health and safety
Supply chain management
Sustainable Manufacturing	Communication channel:
Supplier communication meeting: biweekly, monthly
Annual supplier partners’ meeting: yearly
Suppliers, self-assessment questionnaire: yearly
On-site audit guidance: irregularly
Anti-corruption mailbox: irregularly
Contact person: Please refer to the official website's reporting section.
https://www.innolux.com/tw/contacts.html
[email protected]	1. 304 suppliers CIP meetings
2. 1,701 suppliers communication meetings
3. 30 whistleblowing
Governments/Associations	Talent development and training
Sustainable Manufacturing
Customer Relationship Management
Ethical corporate management
Cyber Security
Occupational health and safety
Human rights	Communication channel:
Meetings (seminars, investor conferences, public hearings, symposiums)/irregular
Official correspondence/irregular
Contact person:
PR: Ms. Chen , [email protected] , 037-586108
Corporate Sustainability Division :
Mr.Lin , [email protected]
06-5051888#41703	1. 6 government related meetings
2. 3 government experience sharing and exchange meetings
Society (schools, communities, media, non-governmental organizations)	Human rights
Ethical corporate management
Talent development and training
Social participation and Caring
Cyber Security
Talent development and training	Communication channel:
Volunteer Service: irregularly
Project cooperation and visit: irregularly
Neighborhood communication: irregularly
Events and forums: irregularly
“Innolux ESG DNA” Fan page on FACEBOOK and Instagram: irregularly.
Press conference and press releases: irregularly
Hotline and mailbox: irregularly
Contact person:
Corporate Sustainability Division :
Mr.Lin , [email protected] , 06-5051888#41703
PR Ms. Chen, [email protected] , 037-586108
Innolux Education Foundation Ms. Wu [email protected] , 06-505-1888 #4706006	1. 4 media events (press conference/event guide)
2. 7 media interviews
3. 47 press releases
4. 15 fan page articles published
5. More than 300 media communications (letters, messages and phone calls)

45 -

2.3.4 Operations of the Remuneration Committee

Information on members of the Remuneration Committee

March 31, 2026

Identification		Professional qualifications and experience	Independence	Number of public companies for which the committee member concurrently serves in their remuneration committees
IdENTITY	Name
Independent Director (Convener)	Yong-Fen Hsieh	Please refer to “Directors” in pages 9-11 and “Professional qualifications and experience for Directors” in pages 12-13 of annual report.	Please refer to “Independence of Directors” in pages 14-18 of annual report.	1
Independent Director	Chih-Wei Wu			—
Independent Director	Feng-Kan Chang			1

Attendance of Members at Remuneration Committee Meetings

(1) There are 3 members in the Remuneration Committee.
(2) The term of office of the current committee members: May 7, 2025 to May 6, 2028. In the most recent year), the Remuneration Committee met 4 times (A). The qualifications and attendance of the members are as follows:

Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%) (B/A) (Note)	Remarks
Convener	Yong-Fen Hsieh	3	—	100.00%	Newly elected
Member	Chih-Wei Wu	2	1	50.00%	Reelected
Member	Feng-Kan Chang	3	—	100.00%	Newly elected
Convener	Chi-Chia Hsieh	1	—	100.00%	Retired
Member	Chi-Mo Huang	1	—	100.00%	Retired

Note: The Company fully re-elected its directors on May 7, 2025, and the newly elected directors took office on the same day. The Remuneration Committee met one time before the re-election and three times after the re-election. The actual attendance (%) was calculated based on the number of the Remuneration Committee meetings and the actual number of attendances during his/hers tenure.

Other items to be recorded:

Scope of duties of the Remuneration Committee

(1) Periodically reviewing the Remuneration Committee Charter and making recommendations for amendments.
(2) Establishing and periodically reviewing the performance assessment standards, annual and long-term performance goals, and the policies, systems, standards, and structure for the compensation of the directors, and managerial officers of the Company.
(3) Periodically assessing the degree to which performance goals for the directors, and managerial officers of the Company have been achieved, setting the types and amounts of their individual compensation based on the results of the reviews conducted in accordance with the performance assessment standards.

The Committee shall perform the duties under the preceding paragraph in accordance with the following principles:

(1) Salary management should conform to the Company’s salary concept.
(2) Performance assessments and compensation levels of directors, and managerial officers shall take into account the general pay levels in the industry, individual performance assessment results, and the reasonableness of the correlation between the individual's performance and the Company's operational performance and future risk exposure.
(3) No member of the Committee may participate in discussion and voting when the Committee is deciding on that member's individual compensation.

If the Board of Directors declines to adopt or modifies a recommendation of the Remuneration Committee, it should specify the date of the meeting, term, motion contents, resolution by the Board of Directors, and the
46 -

Company's response to the Remuneration Committee's opinion (e.g., the remuneration passed by the Board of Directors exceeds the recommendation of the Remuneration Committee, the circumstances and cause for the difference shall be specified): None.

The resolutions of the Remuneration Committee and the Company's response are as follows:

Board Meetings	Remuneration Committee Meetings	Motion Contents	Resolution of the Remuneration Committee	The Company's response to the members' opinions
12th meeting of the 9th term 2025.03.13	8th meeting of the 5th term 2025.03.13	1. Proposal of the 2024 employee remuneration and directors' remuneration distribution proposal
2. Proposal of the 2024 full-bonus remuneration proposal for managers and directors who also serve as employees.
3. Proposal of the 2024 employee remuneration proposal for managers and directors who also serve as employees.
4. Proposal of the remuneration proposal for members of the Company's Corporate Governance and Nomination Committee.	Approved by all committee members present as proposed	Approved by all directors present as proposed
2nd meeting of the 10th term 2025.07.31	2nd meeting of the 6th term 2025.07.31	1. Proposal the Company's remuneration policy for directors and functional committees
2. Proposal revisions to the Company's full-commission system for managers
3. Proposal the proposed remuneration for managers	Approved by all committee members present as proposed	Approved by all directors present as proposed
3rd meeting of the 10th term 2025.11.07	3rd meeting of the 6th term 2025.11.07	1. Proposal of the proposed management compensation and employee compensation for 2024.	Approved by all committee members present as proposed	Approved by all directors present as proposed

2.3.5 Composition, Responsibilities and Operations of the Corporate Governance and Nominating Committee:

1. Qualification Requirements and Responsibilities of Members of the Corporate Governance and Nominating Committee

The Company established the Corporate Governance and Nominating Committee in February 2025. Pursuant to the authorization of the Board of Directors, the Committee shall perform the following Responsibilities faithfully with the care of a prudent manager, and submit its recommendations to the Board for discussion.

(1) Nominate candidates for directors of the Company, and review the qualifications of the director candidates.

(2) Establish the organizational structure of the functional committees of the Board of Directors, and review the formulation and amendment of the organization rules of the functional committees.

(3) Review the formulation and amendment of the rules related with the operation of the Board of Directors of the Company.

(4) Review the Corporate Governance Best Practice Principles of the Company.

(5) Supervise and direct the performance evaluation/effectiveness evaluation of the Board of Directors, and submit the results to the Board of Directors for review and improvement.

(6) Donations to related persons or significant donations to non-related persons. However, public donations for emergency relief due to major natural disasters must be submitted to the Committee for approval before ratification by the Board of Directors next time.

(7) Provide the new director with an appropriate description of his/her post, so that the new

47 -

director can understand his/her responsibilities and become familiar with the operations and environment of the Company.

(8) Other items directed by the Board of Directors to be handled by the Committee.

2. Professional Qualifications and Experience of Members of the Corporate Governance and Nominating Committee

Qualification		Professional qualifications and experience
Identity	Name
Convener	Chih-I Wu	Please refer to “Directors” in pages 9-11 and “Professional qualifications and experience for Directors” in pages 12-13 of annual report.
Member	Jin-Yang Hung
Member	Hsin-Bei Shen

3. Information on the Implementation Status of the Corporate Governance and Nominating Committee

(1) The Corporate Governance and Nominating Committee comprises three members.

(2) The term of office of the current committee members: May 7, 2025 to May 6, 2028. In the most recent year, the Corporate Governance and Nominating Committee met 2 times (A). The attendance records are as follows:

Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%) (B/A) (Note)	Remarks
Convener	Chih-I Wu	2	—	100.00%	Reelected
Member	Jin-Yang Hung	2	—	100.00%	Reelected
Member	Hsin-Bei Shen	2	—	100.00%	Reelected

Note: The Company fully re-elected its directors on May 7, 2025, and the newly elected directors took office on the same day. The Corporate Governance and Nominating Committee met one time before the re-election and one time after the re-election. The actual attendance (%) was calculated based on the number of Corporate Governance and Nominating Committee meetings and the actual number of attendances during his/her tenure.

4. The Resolutions of the Corporate Governance and Nominating Committee and the Company's Response to the Committee's Opinions:

Meeting Date of the Corporate Governance and Nominating Committee	Motion Contents	Resolution
1st meeting of the 1st session 2025.03.13	1. Proposal on the Proposed Reference List of Candidates for the Tenth Term Directors (including Independent Directors) Nominated by the Board of Directors of the Company
2. Proposal on the Performance Evaluation Results of the Board of Directors and Functional Committees of the Company for 2024
3. Planned Donation of the Company to the Innolux Education Foundation	Approved by all committee members present as proposed	Approved by all directors present as proposed

2.3.6 Sustainable Development Implementation Status and Deviations from "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies"

Implementation Item	Implementation Status
	Yes	No	Abstract Explanation
1. Whether or not the Company establishes a governance framework and sets up a dedicated (concurrent) unit that promotes sustainable development; whether or not senior management is delegated by the Board of Directors to deal with sustainable development issues and the supervision of the Board?	V		The Company established the Sustainable Development Management Committee in 2011, as the highest-level of sustainable development decision-making center within the Company. It is chaired by the Chairman of the Board of Directors, with the President serving as the vice chair, and they work with a number of senior executives in various fields to review the Company's core operational capabilities and Planning for long-term sustainable development strategies development plans.
Governance framework and operating mechanism
Supervision of the Board of Directors: The Sustainable Development Committee conducts annual risk assessments on corporate governance, environmental and social issues based on the principle of materiality, and formulates sustainable development goals to ensure that sustainable development strategies are fully implemented in the Company's operations. The implementation status in 2025 was reported to the Board of Directors on March 10, 2026.
Operating mode: The Committee identifies key sustainable development issues of concern to the Company's operations and stakeholders through regular meetings and project task groups, and based on this, formulates strategies and action policies, prepares relevant budgets, and tracks the effectiveness to ensure that the Company's sustainable development vision is deepened and implemented. Sustainability Dedicated Unit
The Company has set up the Sustainability Dedicated Unit to serve as the Affair Department of the Sustainable Development Committee, which is responsible for:
1. Collecting the needs of stakeholders, and ensuring smooth communication mechanisms.
2. Analyzing domestic and international sustainable development trends, and evaluating major sustainable development issues that may affect the Company's operations.
3. Formulating management policies and action plans, and coordinating with	No significant difference compared to Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies

49 -

Implementation Item	Implementation Status			Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
			various functional departments to promote their implementation.
4. Preparing sustainability reports, ensuring their compliance with international standards and regulatory requirements.
5. Enhancing the ESG management mechanism, continuously optimizing the ESG Control Tower in 2025 to grasp the current status of ESG in real time, and strengthening the resilience and competitiveness of the Company.
The Company ensures the effective implementation of sustainable development goals through a complete sustainable development governance framework and dedicated operating mechanism, and implements the Board of Directors supervision and decision-making mechanism to practice corporate social responsibilities and promote stable and sustainable operations of the Company.
2. Does the Company assess ESG risks associated with its operations based on the principle of materiality, and establish related risk management policies or strategies?	V		The Company conducts materiality analysis every year through communication or negotiation with stakeholders, combined with its sustainable impact assessment, and also refers to the Global Risk Report issued by the World Economic Forum (WEF), conducts identification of major risks and formulate countermeasures for its Taiwan factories, Mainland China factories and subsidiaries, and also include ESG risk issues related to its operations. In this regard, in response to various risk issues, relevant departments monitor the risks and propose mitigation measures and countermeasures to continue the operations.
The Company’s relevant risk management policies and effectiveness are disclosed in the ESG Report and the Company’s website.	No significant difference compared to Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
3. Environmental issues
(1) Does the Company establish proper environmental management systems based on the characteristics of industries?	V		(1) The Company formulates environmental safety and health policies as the highest standards for promoting environmental protection, safety and health business. In order to effectively manage environmental protection and align with international standards, the Company continues to comply with relevant laws and regulations, enhances resource utilization and pollution prevention, and fulfills corporate social responsibility. The Company has 100% completed the establishment of environmental management systems (ISO 14001:2015) in all factories and subsidiaries, and obtained verification certificates issued by impartial third-party verification agencies. The Company continues to maintain	No significant difference compared to Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies

50 -

Implementation Item	Implementation Status
	Yes	No	Abstract Explanation
(2) Does the Company endeavor to utilize energy resources more efficiently and use renewable materials which have low impact on the environment?	V		their validity. Validity Period: December 12, 2025 to December 11, 2028.
(2) The Company formulates environmental safety and health policies as the highest standards for promoting environmental protection, safety and health business. In order to effectively manage environmental protection and align with international standards, the Company continues to comply with relevant laws and regulations, enhances resource utilization and pollution prevention, and fulfills corporate social responsibility. The Company has 100% completed the establishment of environmental management systems (ISO 14001:2015) in all factories and subsidiaries, and obtained verification certificates issued by impartial third-party verification agencies. The Company continues to maintain their validity. Validity Period: December 12, 2025 to December 11, 2028.
(3) Does the Company evaluate potential risks and opportunities brought by climate change, and take response measures to climate-related issues?	V		(3) The Company has included climate change as one of its major corporate sustainability risks and has set and promoted climate action targets through the operation of the Sustainable Development Committee and Carbon Risk Management Committee under the supervision of the Board of Directors. The Company refers to the TCFD recommended report framework, combines international trends, research literature, evaluation indicators, and industry reports, and through cross-department discussions, conducts material identification at short, medium, and long-term time points to identify potential transition and physical risks and opportunities in March 2023, the Company officially signed up to the TCFD initiative and became a supporter.In order to reduce the risk of climate change, the Company divides the impact into physical and transition aspects according to each major risk for simulation. In response to climate change, the Company has formulated a corresponding transition plan, which includes the construction of renewable energy equipment and carbon capture, storage and reuse technologies, and the purchase of carbon rights and certificates to reduce domestic carbon fees and overseas carbon tax pressure. At present, In 2024, the company achieved the 2026 WB2C SBTi target, and in 2025, we submitted an application for the 2030 SBTi 1.5°C target. We continue to promote the medium-term targets of RE20 by 2030 and RE100 for our China plants, and make rolling revisions and adjustments. The Company’s analysis of climate change risks and opportunities is disclosed

51 -

Implementation Item	Implementation Status	Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
Yes	No	Abstract Explanation
(4) Does the Company compile statistics of greenhouse gas emissions, water use, and total weight of waste in the past two years, and does it establish policies for energy conservation, carbon reduction, greenhouse gas emission reduction, water use reduction, and other waste management?	V
Unit: million tons CO2e	2024	2025
Scope 1	0.079	0.075
Scope 2	2.161	2.095
Scope 3	2.876	2.932
Total	5.116	5.102
Water consumption:In the face of global climate warming and changes, as well as the increasingly

Implementation Item	Implementation Status	Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No

Unit: million tons	2024	2025
Taiwan factory	13.5	13.3
Mainland China factory	1.6	1.1
Total	15.1	14.4
Waste:	Green recycling is one of the Company’s key sustainability strategies. With the development of Innolux’s “green manufacturing = recycling × zero waste × low carbon” as the core, we build a high-efficiency recycling green factory. Its four major functions include energy recycling, water recycling, raw materials recycling, and packaging material recycling. By integrating suppliers and partners in the value chain, we create circular economy value through resource regeneration, recycling, and redesign. In addition to physical promotion, it also promotes digital management and develops a material efficiency improvement system for material flow analysis to help factories identify improvement opportunities for material reduction, recycling, and reuse, maximizing resource efficiency. The company adopts a strategy of waste reduction and resource utilization, and has set short- to medium-term waste management targets for 2025. By 2030, the resource recycling rate of hazardous business waste will reach 95%, and the annual landfill rate of waste will be controlled below 1.95%. We anticipate that

53 -

Implementation Item	Implementation Status	Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
Yes	No	Abstract Explanation

The output of hazardous waste by the Company and its subsidiaries in the past two years, The output figures for 2024 are those disclosed in the sustainability report, while those for 2025 are projected output figures.: | |
| Unit: metric tons | 2024 | 2025 |
| Taiwan factory | 17,448 | 14,672 |
| Mainland China factory | 319 | 369 |
| Total | 17,767 | 15,041 |
| The output of non-hazardous waste by the Company and its subsidiaries in the past two years, The output figures for 2024 are those disclosed in the sustainability report, while those for 2025 are projected output figures: |
| Unit: metric tons | 2024 | 2025 |
| Taiwan factory | 41,406 | 38,029 |
| Mainland China factory | 9,838 | 12,490 |
| Total | 51,244 | 50,519 |
| The Company’s policies and effectiveness in greenhouse gas emissions, water consumption and waste management are disclosed in the ESG Report and the Company’s website. |
| 4. Social issues
(1) Does the Company formulate appropriate management policies and procedures according to relevant regulations and the International Bill of Human Rights? | V | | (1) The Company is committed to protecting human rights. In 2023, the policy of human rights and diversity and inclusion was formulated, supporting and respecting relevant international labor rights norms, including the Universal Declaration of Human Rights (UDHR), the United Nations Global Compact (Global Compact), the United Nations Guiding Principles on Business and Human Rights (UNGPs), and the International Labor Organization (ILO) and Code of Conduct - Responsible Business Alliance (RBA). Under the local laws and regulations and the spirit of international human rights standards, the Company formulates human rights protection and labor-related norms. These norms are designed to enable its global employees, contract employees, | No significant difference compared to Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies |

54 -

Implementation Item	Implementation Status			Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
(2) Does the Company have reasonable employee benefit measures (including salaries, leave, and other benefits), and do business performance or results reflect on employee salaries?	V		customers, and supplier partners to comply with consistent requirements. Its internal norms include Innolux’s code of conduct, employee handbook, work rules, recruitment/appointment procedures, sexual harassment prevention measures, complaints and management practices, measures to prevent illegal infringement while performing duties, employee care and assistance practices in Greater China sites. For external standards, it also formulates a supplier corporate social responsibility code of conduct and requires its suppliers and partners to follow it simultaneously.

(2) The Company has implemented the employee dedication survey since 2023 in the hope of identifying management problems, exploring the organizational climate, and listening to the employees’ opinions through the questionnaire feedback, in order to find solutions to the problems, make continuous adjustments and improvements, drive a positive cycle, and create a sustainable corporate environment in which we can grow together with our employees. In 2025, the satisfaction score was 84.4 points, reaching the set target of 80 points. The Company provides diversified and competitive remuneration and career development opportunities, and is committed to building an internally reasonable and externally competitive remuneration system. It also has an overview of the Company’s financial and operating conditions, the industry’s annual salary adjustment strategy and personal work performance, improves the planning and execution of annual salary adjustment operations, design and issue incentive bonuses to motivate and retain outstanding talents. At the same time, in order to motivate and employees to stay and create better value, we plan retention bonus and employee stock ownership trusts to achieve a win-win situation.

Remuneration:
The Company conducted direct and indirect personnel structure and performance-based pay adjustments (by 5%-10%) in 2025 after comparing the salary level in the external market and the overall economic situation, and will continue to plan welfare policies and talent retention programs better than the legal regulations.

Take a leave: | |

55 -

Implementation Item	Implementation Status			Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
			In order to allow colleagues to balance work and family care, in addition to statutory leave, employees are entitled to special leave on the day they arrive at work, and paid corporate welfare leave is also provided, so that they will not be absent at every important stage of their lives.

A. Care leave (increase time spent with parents)
B. Child study accompaniment leave (attendance with children entering school for the first time to reduce their insecurity)
C. Pregnancy checkup accompaniment leave (accompanying partner for prenatal checkup)
D. Mental adjustment leave (physical and mental adjustment)

Work flexibility measures:
Flexible working hours and location
Diversity and equality in the workplace:
Under the local laws and regulations and the spirit of international human rights standards, the Company formulates human rights protection and labor-related norms. These norms are designed to enable its global employees, contract employees, customers, and supplier partners to comply with consistent requirements. In 2023, the Company formulated a human rights and diversity and inclusion policy, requiring the Company and its subsidiaries, including all employees and overall operating activities, to work together with our suppliers, outsourcers, contractors, customers and other value chain partners to safeguard human rights.

In order to create a diversified and inclusive workplace culture, the Company continues to promote cultural exchanges and internationalization measures to deepen employees’ understanding of DEI (Diversity, Equity, Inclusion).

A. Cultural integration and exchange:
In 2025, the Company planned diversified dormitory activities and encouraged migrant workers to participate in in-house events such as sports meeting, music carnivals, and Spring Festival shopping street. In addition, the International Friendship Week promoted cultural interaction and inclusion through activities such as a Chinese storytelling contest and Filipino food experience. | |

56 -

Implementation Item	Implementation Status			Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
(3) Does the Company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis?	V		B. Migrant workers’ autonomous associations:
Encourage migrant workers to establish their own associations and invite local employees to participate. Currently, four new associations have been proposed to promote in-depth exchanges between international and local employees.
The Company respects gender equality in career development and takes practical actions to create ‘a friendly workplace, such as multiple and smooth complaint channels and sexual harassment prevention and control measures, and providing a comprehensive maternal care plan so that female employees can balance work and life. Among the regular employees, the proportion of female employees of the Company and its subsidiaries is 36.94%; the number of female employees in management positions reaches 19.08%; the proportion of female senior managers is 12.50%, marking an upward trend compared with 2024. This reflects the Company’s ongoing progress toward becoming an equal, diverse and friendly corporation. Even in the technology industry where men make up the majority, through fair selection mechanisms, outstanding female colleagues can have promotion opportunities and their development is not limited by gender.
			Women’s proportion in different roles	2024
			All employees	36.85%
			Senior executives	11.40%
			Supervisor	17.94%
			(3) The Company sets up the environmental safety unit, which is responsible for planning, implementation, auditing and improvement of the Company’s environmental safety and health management system operation. It also formulates environmental safety and quality policies. All of the Company’s factories and subsidiaries have obtained ISO 45001:2018 occupational health and safety management system certification; 100% of the Taiwan factory production bases have passed the TOSHMS management system certification and continue to maintain their effectiveness. Valid from December 11, 2025 to December 10, 2028.	19.08%

57 -

Implementation Item	Implementation Status			Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
(4) Does the Company provide its employees with career development and training	V		In order to cultivate employees’ safety and health concepts and strengthen their awareness of occupational hazards, courses such as general safety and health knowledge, professional knowledge and skills training, and emergency response training are held. Tests or training awareness and satisfaction surveys are conducted after the classes to ensure safety in daily work and emergencies. The occupational safety and health education and training of the Company and its subsidiaries in the past two years.
			Item	2024 2025
			Training sessions	3,418 1,894
			Number of trainees	338,210 200,434
			The Company’s disabling injury frequency (FR) in 2025 was 0.13, and its disabling injury severity rate (SR) was 3, which was far lower than the 0.85 reported by the Occupational Safety and Health Administration for the “electronic components manufacturing industry” in 2022 and reached the Company’s target (0.24) for 2025. In order to prevent the recurrence of accidents, the Company launched an occupational hazard prevention strategy and management plan in 2025, and formulated four improvement strategies: strengthening leadership determination, eliminating hazardous factors, enhancing safety and health awareness, and promoting knowledge exchange, and initiated actions such as supervisor’s safety expectations and declarations, supervisor’s regular supervision and inspection, incident awards and penalties, system improvement, operational hazard analysis and observation, safety inspection of hazardous areas, and improvement of parallel implementation and audit systems, in order to enhance employees’ safety awareness and strengthen the safety of the operating environment.
The company experienced one fire in 2025, with no fatalities or injuries. The fire was caused by an abnormality in a molded transformer at the substation, resulting in smoke and subsequent fire. An accident investigation has been completed, and management procedures have been revised to prevent recurrence.
(4) Undertake the 3Vs of the operation strategy - “Create Value, Drive Value, Share Value”, plan diversified learning resources through Innolux University, and

58 -

Implementation Item	Implementation Status
	Yes	No	Abstract Explanation
sessions?			actively promote the goals of talent upgrading, cross-border learning and corporate sustainability. Innolux University provides supervisor/college learning to enhance knowledge learning in different fields such as digital transformation, management literacy, functional majors, and multi-task language. It has five colleges and one center, with a total of 24 courses, promoting personal career and company growth, achieving mutual prosperity and win-win. This systematic training mechanism enables employees to develop their talents and achieve continuous growth.
(5) Does the Company comply with relevant regulations and international standards in customer health and safety, customer privacy, and marketing and labeling its goods and services etc., and has it established consumer rights protection policies and complaint procedures?	V		(5) The Company is committed to meeting compliance requirements and complying with regional sales market safety and regulatory requirements in the product design process. In terms of regulatory identification, we establish control standards; in terms of material verification, we establish systems to ensure material compliance; in terms of product certification, we implement global market access requirements; in terms of customer demand management, we strive to meet customer’s compliance requirements, actively ensure product compliance. Establish a customer-oriented work philosophy and communicate through phone calls, emails, and face-to-face meetings to fully understand customer needs, formulate improvement strategies, and respond to customers quickly.
(6) Does the Company have a supplier management policy, require suppliers to comply with regulations on environmental protection, occupational safety and health, and labor rights, and what is its implementation status?	V		(6) The Company formulates the “Supplier Corporate Social Responsibility Code of Conduct Operating Standard” based on the Responsible Business Alliance Code of Conduct (RBA) and expects suppliers to work together to implement ESG (environmental, social and governance) management in all aspects of business ethics, labor human rights, health, safety, environment and management systems, so as to improve the effectiveness of sustainable supply chain management and achieve operational risks control to establish a partnership of coexistence and mutual prosperity.
The Company will conduct a preliminary assessment and analyze potential risks for new suppliers based on business relationships, product supply categories, location, and potential negative impact risks on the environment, society, governance, etc., and will need to go through on-site/written audit by the procurement, quality, technology, green product units and the sustainability team; in addition, new suppliers need to complete the “Sustainability

59 -

Implementation Item	Implementation Status			Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
			Assessment Questionnaire (SAQ)” risk self-assessment and sign the “Manufacturer Commitment Letter” before they can become our official supplier. The process of selecting new suppliers takes into account environmental and social standards 100%. Key raw materials suppliers are required to fill in a corporate social responsibility risk questionnaire (SAQ) every year to assess compliance with the five major aspects of RBA, including labor, health and safety, environment, business ethics, and management system. According to the supplier’s response to the information, the Company will determine the sustainability risk. If a supplier is determined to be at high risk, on-site audits will be initiated and continuous follow-up and direction will be provided for improvement. We hope that our suppliers will not only comply with the relevant regulations of our Company, but also require the compliance of the next level of their supply chain.
5. Does the Company reference internationally accepted reporting standards or guidelines, and prepare reports that disclose non-financial information of the Company, such as ESG reports? Do the reports above obtain assurance from a third party verification unit?	V		The Company’s 2025 ESG Report is based on the GRI Standards (2021) published by the Global Reporting Initiative (GRI) in 2021 and passed the certification of the third-party verification unit Taiwan Verification Technology Co., Ltd. (SGS), which met the spirit of the AA1000 AS v3 second type high assurance level, the In Accordance option of the GRI Standards 2021, and SASB sustainability indicators disclosure requirements.	No significant difference compared to Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
6. If the Company has established the Sustainable Development Best Practice Principles based on “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, please describe any discrepancy between the Principles and their implementation:
In order to take corporate sustainable management responsibilities, the Company formulated the Company’s Sustainable Development Best Practice Principles according to the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, which were implemented after being approved by the Board of Directors in 2022; In addition, the Company formulated the Sustainable Development Policy and Code of Conduct for Sustainable Development with reference to the United Nations Convention and the Responsible Business Alliance Code of Conduct, and other international initiatives documents, which mainly cover seven aspects including integrity, compliance with laws and regulations, respect for human rights, friendly environment, participation in community development and public welfare activities, utilization of influence on supply chain, balancing and continuously improving economy, social and environmental performance. They also emphasize the inclusion of social and environmental opportunities and risks in the operational management considerations, and strive to strengthen communication and integration with our stakeholders to leverage the influence of corporate sustainability of the Company.
7. Other important information to facilitate better understanding of the Company’s sustainable development implementation:
The Company adheres to the belief of corporate sustainable management, and works with the Innolux Education Foundation to focus on public welfare care and environmental

60 -

Implementation Item	Implementation Status			Deviations from “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Explanation
education, and commit to community participation and social care, and achieving mutual prosperity and development between enterprises and society. The relevant results are disclosed in the ESG Report, the Company’s website and the Market Observation Post System.

(1) Charity care:
Christmas Warmth x Gift Collection
Innolux Education Foundation continues to launch the “Infinite Love for Charity” event, has launched the “Christmas Warmth x Gift Collection” activity for 9 consecutive years, and has joined hands with Miaoli and Tainan Fund for Children and Families to realize the Christmas wishes for 10,721 disadvantaged children. Since 2023, the scope of activities has expanded to include the elderly. In conjunction with the Huashan Social Welfare Foundation and the local community in Miaoli, the Company has offered woolen knitting courses. In 2025, 88 colleagues were invited to participate and weave 231 woolen fabrics, which were donated by volunteers to elderly, creating a good cycle of mutual benefit.
Colleagues participated in social welfare activities
Encourage colleagues to participate in public welfare in the simplest way possible, including adoption gifts, donating, or volunteering, hoping to gather everyone’s strength and create positive impact for society together.

(2) Environmental education:
Net Zero Education Walk Start Plan
To continue the net-zero environmental education, the Company held 32 net-zero promotion courses and 1 online camps in 2025, benefiting a total of 3,646 students, and participating in 126 volunteer services for 317 hours accumulatively. Up to now, a total of 7,116 students have participated in net-zero environmental education courses, further deepening the concept of environmental sustainability.
Braving the Peak: Hiking Across the Central Mountain Range Plan
Innolux Education Foundation supports the documentary film “Braving the Peak” to promote the beauty of Taiwan’s mountains and forests and the spirit of challenging oneself, documenting the journey of off-road runners completing the 332km long trek in the Central Mountain Range. After the movie was withdrawn, we brought it to rural schools to share the experience of challenging the limits and learning attitude with students. Combined with outdoor activities, we held two mountain off-road young runners classes, benefiting 47 students and conveying the importance of environmental protection and sustainable mountains and forests.
Low-Carbon Healthy Eating
To promote the concept of low-carbon sustainable diets and enhance public health awareness, the Company held two agri-food education sessions and two low-carbon vegetarian health seminars in 2025. The events featured local smallholder farmers demonstrating smart agricultural tractors and agricultural drone operations, providing hands-on experience of how technology optimizes agricultural production. In parallel, the Company promoted the green dining concept by introducing weekly Meatless Mondays to encourage employees to practice low-carbon sustainable eating. A company-wide low-carbon diet day was held, and the Company obtained the “Heart of the Ocean Ecolabel”. These initiatives cultivate eco-friendly eating habits, reduce carbon footprints, and promote a sustainable dining culture. | | | | |

61 -

2.3.7 Climate-Related Information

1. Implementation of Climate-Related Information

Item	Implementation Status
1. Describe Board of Directors and management oversight and governance of climate-related risks and opportunities.	The Company’s sustainable development unit summarizes the annual climate strategy results and climate risks and opportunities, and the corporate governance officer reports to the Board of Directors regularly every year, in conjunction with the review of relevant sustainability vision goals and results, and makes adjustments on a rolling basis as appropriate. Moreover, the Carbon Risk Management Committee tracks the response strategies and situations of each working group every quarter; if major climate-related decisions need to be made, irregular meetings will be held for review by the Board of Directors.
2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).
3. Describe the financial impact of extreme climate events and transition actions.	The Company refers to the TCFD proposal report framework and uses eight aspects including revenue, direct cost, indirect cost, capital expenditure, capital acquisition, asset value, premium and liability to summarize potential financial impact risks.
In 2025, the major transition actions also fall into the category of regulations. Cap control/emissions trading, mandatory declarations and the uncertainty of new regulations, all three may lead to increasing costs for the Company. Major physical extreme weather events, including tropical cyclones, not only impact costs but also contribute to a decrease in revenue.
4. Describe how climate risk identification, assessment and management processes are integrated into the overall risk management system.	The Company’s risk management policies and procedures are based on the principle of three lines of defense. The business execution unit is responsible for identifying and controlling risks; the risk management unit ensures compliance with laws and mastery of risk management objectives; the audit office independently audits the business to ensure the effective operation of the internal control system.
In 2025, the Company conducted major identification based on the four major risk categories of strategy, operation, finance and hazard. Climate change has been included as one of the long-term risks and will be comprehensively and holistically controlled according to the above system.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and main financial impacts used should be described.	In order to effectively respond to climate impacts and face future uncertainties, climate scenario analysis is adopted, using the revenue of 2022 as the benchmark to reflect the possible effect of physical and transition impact under various scenarios.
Referring to the Sixth Assessment Report AR 6 issued by the IPCC in 2021, for the physical impact, the Company uses the Representative Concentration Pathway (RCP), excluding society, economy, and other factors, simply compares the changes in the radiation force to consider, and simulates using the Worst-case Scenario, that is, RCP 8.5; for transition impacts, the Company

62 -

Item	Implementation Status
	considered Nationally Determined Contributions (NDC), Shared Socioeconomic Pathway (SSP), and Science Based Targets (SBT). The simulation utilized the more representative SSP1-1.9 and SBT 1.5.
6. If there is a transition plan to manage climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical and transition risks.	In response to climate change, the Company has formulated a corresponding transition plan based on the baseline BAU (Business As Usual), which includes implementing energy-saving and carbon-reduction measures in combination, the construction of renewable energy equipment, the purchase of green power, certificates and carbon rights, carbon capture, storage and reuse technologies to reduce domestic carbon fees and overseas carbon tax pressure. Currently, the Company has already achieved its 2026 WB2C SBTi target in 2024, and submitted an application for a SBTi 1.5 target for 2030 in 2025. We will continue to pursue the medium-term targets of achieving RE20 by 2030 and RE100 for our China manufacturing sites, with rolling reviews and adjustments.
7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	The basis for setting the Company’s internal carbon pricing is as follows: {[Investment amount (NT$) ÷ Number of amortization years (years)] + Freight cost (NT$) + Inspection fee (NT$) } / Greenhouse gas emission reduction (ton CO2e)
8. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified.	The Company and subsidiaries have set the following reduction targets and action plans:1. Set SBTi carbon reduction targets. Greenhouse gas Scope 1 and Scope 2 emissions in 2026 will be absolutely reduced by 15% compared to 2020. Through improvements in energy efficiency, installation of fluorine-containing gas reduction equipment in the process, and installation of renewable energy devices and electricity purchase, it is estimated that emissions can be reduced by 35.6% in 2025 compared with the emission in 2020.2. In 2030, the proportion of renewable energy usage will reach 20% (RE20). Through the installation of solar power equipment and renewable energy procurement, it is estimated that the renewable energy usage rate will reach approximately 5.2% in 2025.
9. Greenhouse gas inventory and assurance status, reduction goals, strategies and specific action plans are described below.	1. The Company completed the 2024 greenhouse gas inventory and third-party verification agency assurance work of the parent company and its subsidiaries in 2025. It will continue to implement the 2025 greenhouse gas inventory and assurance work in 2026. The inventory and verification work are planned to be completed by the end of April 2025 and the verification statement will be obtained by the end of August 20262. The Company has set the SBTi reduction target for its Greater China factories. The absolute reduction of greenhouse gas Scope 1 and Scope 2 emissions in 2026 will be 15% compared to 2020. In 2030, this reduction will increase to 25% compared to the base year of 2020.

63 -

Item

Implementation Status

Additionally, by 2030, the proportion of renewable energy usage will reach 20% (RE20).

3. The carbon reduction strategy includes low-carbon transition of the process, improvement of energy efficiency, and installation of renewable energy devices. Actions taken include maintaining efficiency of high-efficiency exhaust gas reduction equipment, reducing the use of FCs gas and fossil fuels, replacing old equipment to improve energy efficiency, setting up solar power generation devices, setting up biogas power generation devices, and evaluating low-carbon energy generation devices, etc.

2. Greenhouse Gas Inventory and Assurance Status

(1) Greenhouse Gas Inventory Information: 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.

The results of the 2024 greenhouse gas inventory of the Company and its subsidiaries in 2024 were disclosed in the ESG Report. The Scope 1 and Scope 2 emissions were approximately 2.24 million metric tons of CO2e. The density was about 10.341 metric tons CO2e/NT$ million.

The preliminary results of the greenhouse gas inventory of the company and its subsidiaries in 2025 were disclosed in the ESG Report. The Scope 1 and Scope 2 emissions were approximately 2.17 million metric tons of CO2e. The density was about 9.58 metric tons CO2e/NT$ million.

(2) Greenhouse Gas Assurance Information: 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.

The Company and its subsidiaries have completed the 2024 greenhouse gas inventory and assurance work in 2025 in compliance with the planning schedule of the Financial Supervisory Commission's "Sustainable Development Roadmap for TWSE- and TPEx-Listed Companies".

The Company plans to complete the 2025 greenhouse gas inventory by the end of April 2026 and entrust a third-party inspection agency (DNV GL Business Assurance Co., Ltd.) to conduct an inspection. It is expected to obtain the verification statement by the end of August 2024. Complete assurance information will be disclosed in the ESG Report.

3. Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan

Greenhouse gas reduction base year and its data, reduction goals, strategies, specific action plans and achievement of reduction goals

The Company's mid-term to long-term carbon reduction target is to reduce greenhouse gas Scope 1 and Scope 2 emissions by 25% in 2030 compared with the base year of 2020. The reduction strategy includes low-carbon transition of the process, improvement of energy efficiency, and installation of renewable energy devices. Actions taken include setting up high-efficiency exhaust gas reduction equipment, reducing the use of FCs gas and fossil fuels, replacing old equipment to improve energy efficiency, installing solar power generation devices, building biogas power generation devices, etc.

The Company's third-party inspection showed that the greenhouse gas emissions of the Greater China factories reached 2.24 million metric tons of CO2e in 2024, a reduction of 33.5% compared with the base year. It is estimated that greenhouse gas emissions will reach 2.17 million metric tons of CO2e in 2025, a reduction of about 35.6% compared with the base year.

2.3.8 Ethical Corporate Management Implementation Status and Deviations from “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item	Implementation Status
	Yes	No	Abstract Illustration
1. Establishment of ethical corporate management policies and programs
(1) Does the Company establish an ethical corporate management policy that was approved by the Board of Directors, and declare its ethical corporate management policy and methods in its regulations and external documents, as well as the commitment of its Board and management to implementing the management policies?
(2) Does the Company establish mechanisms for assessing the risk of unethical conduct, periodically analyze and assess operating activities within the scope of business with relatively high risk of unethical conduct, and formulate an unethical conduct prevention plan on this basis, which at least includes preventive measures for conduct specified in Article 7, Paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies?	V		(1) Honesty and integrity are the Company’s most important operating stone, which consolidates the Company’s leadership role in the display industry and gains the trust and respect of customers, shareholders, employees, suppliers and society. The Company’s integrity management policy has been set out in the “Ethical Corporate Management Best Practice Principles for Innolux Corporation”, “Corporate Governance Principles”, “Sustainable Development Best Practice Principles”, “Code of Ethics for Directors and Officers” adopted by the Board of Directors. Various internal regulations and external documents, such as Employee Code of Conduct, and Supplier Corporate Social Responsibility Code of Conduct Operating Standard, express the policies and practices of operating in good faith, and strictly require employees of the Company to fulfill the Company’s integrity policy. At the same time, the Company’s annual report and ESG report and other documents also detail the Company’s integrity management policy and the Board of Directors and management's commitment to actively implement the situation.
(2) In order to prevent dishonesty, the Company has strengthened relevant prevention measures in regulations and external documents for business activities with a high risk of dishonesty, and regularly checks, analyzes and evaluates whether the prevention measures are operating effectively to review and correct the prevention measures. In addition, the Company requires all employees to understand the aforementioned specifications in detail, and publish the specifications on the Company’s official website and internal website for internal and external personnel to consult at any time. The Company continues to use regular education and training and diversified publicity methods to make employees clearly aware of the norms they should abide by, thereby reducing the occurrence of dishonest behavior.	No significant difference compared to the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies

65 -

Evaluation Item	Implementation Status			Deviations from the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
(3) Does the Company specify operating procedures, guidelines for conduct, punishments for violation, rules of appeal in the unethical conduct prevention plan, and does it implement and periodically review and revise the plan?	V		(3) Ethical Corporate Management Best Practice Principles for Innolux Corporation, Code of Ethics for Directors and Officers, Employee Code of Conduct and Supplier Corporate Social Responsibility Code of Conduct Operating Standard are set to prevent dishonesty norms, for all employees and suppliers to follow together, but also in the Innolux corruption investigation and management practice norms for dishonest behavior of the whistle-off system, including whistleblowing law, whistleblowing channels and handling process, for internal and external personnel to file a complaint.
The Company will take a fair attitude towards dishonesty and investigate and report cases in a rigorous manner, and in the event of a violation, the Company will take appropriate legal action in accordance with the relevant laws and work rules.
2. Fulfill operations integrity policy
(1) Does the Company evaluate business partners’ ethical records and include ethics-related clauses in business contracts?	V		(1) The Company requires global suppliers to comply with the Supplier Corporate Social Responsibility Code of Conduct Operating Standard and sign a manufacturer's commitment to jointly practice the Company’s corporate culture of integrity management. In addition, the Company continues to conduct policy communications to suppliers and customers to communicate the Company’s integrity management culture to suppliers and customers, and to understand whether any misconduct has occurred.	No significant difference compared to the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(2) Does the Company establish a dedicated unit under the Board of Directors to promote ethical corporate management, and periodically (at least once a year) report to the Board of Directors and supervise the implementation of the ethical corporate management policy and unethical conduct prevention plan?	V		(2) The Company is led by the Corruption Incident Investigation Team as a responsible unit. It continues to promote various integrity management plans in accordance with company policies, and promotes integrity and cleanliness matters. Integrity management policies, prevention of dishonesty behavior plans, supervision, and implementation situation in 2025 have been conducted an annual report to the Board of Directors on March 10, 2026. If there is a case of violation of honesty and integrity, the Company will handle it in accordance with the regulations of the investigation and management of the corruption incident of Innolux.
(3) Does the Company establish policies to prevent conflicts of interest and provide appropriate communication channels, and implement it?	V		(3) The Company has set out the relevant codes of conduct for the prevention of conflicts of interest in the Code of Ethics for Directors and Officers and Employee Code of Conduct. All colleagues are required to voluntarily declare and avoid any conflict of interest. In order to implement the policy, the Company

66 -

Evaluation Item	Implementation Status
	Yes	No	Abstract Illustration
(4) Does the Company have effective accounting system and internal control systems set up to facilitate ethical corporate management, does the internal auditing unit formulate audit plans based on unethical conduct risk assessment results, and does it audit compliance with the unethical conduct prevention plan or commission a CPA to perform the audit?
(5) Does the Company regularly hold internal and external educational trainings on operational integrity?	V		also requires employees to fill out an annual questionnaire survey to voluntarily report any conflicts of interest.
(4) The Company establishes a complete and effective accounting system and internal control system to ensure the continuous design and implementation of the system. In addition to regular audits by the internal auditing unit of the Company and its compliance with the anti-corruption measures formulated in accordance with the risk assessment results within the Company, there is also PricewaterhouseCoopers to regularly check the financial statements for the Company.

(5) Education and training are the most important part of the Company’s implementation of the integrity policy. The Company continues to strengthen the compliance awareness of colleagues through the Business Ethics and integrity management education and training courses, and at the same time uses the official website, startup screens, and screen savers to continue to promote integrity management standards. The Company regularly organizes business ethics and integrity education and training. In 2025, 5,164 new employees and 9,980 indirect employees from the Greater China region participated and completed the training, totaling 15,144 persons. In addition, in order to ensure that suppliers follow the Company’s integrity management policy, in addition to drafting supplier’s corporate social responsibility codes of conduct and operating specifications for suppliers to follow, the Company has also announced the specifications on the Company’s official website for their reference at any time. | |
| 3. The operation of the Company's whistleblowing system
(1) Does the Company establish both a reward/punishment system and an integrity hotline? Can the accused be reached by an appropriate person for follow-up? | V | | (1) In order to implement the corporate culture of integrity and protect the rights and interests of whistleblowers, the Company has formulated operating standards for the investigation and management of corruption incidents in Innolux Corporation. It sets up a report mailbox on the official website to provide whistleblowing channels, reception procedures and other information ([email protected]) for internal and external personnel at any time to use. In | No significant difference compared to the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies |

67 -

Evaluation Item	Implementation Status			Deviations from the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
(2) Does the Company establish standard operating procedures for investigating reported cases, and does it take subsequent measures and implement a confidentiality mechanism after completing investigation?	V		addition, this reporting channel information is disclosed in the Company’s boot screen, internal advocacy posters and the Letter of Supplier’s Undertakings that suppliers should sign, so that internal and external people are informed and make full use of the whistleblowing channels to report. Report cases according to the Company’s corruption investigation and management practices set up an investigation team to investigate.

(2) The company has formulated detailed operating procedures for handling reports of corruption at Innolux Corporation, including principles for accepting whistleblower complaints, standard operating procedures for investigations, whistleblower protection mechanisms, and related confidentiality measures.. For investigations of reported cases, the Company conducts investigations in a confidential and rigorous manner. After the investigation of the reported cases is completed, the Company takes follow-up measures according to the severity of the internal rules. If criminal responsibility is involved, it will be transferred to the judicial office for investigation.

Acceptance principle
The investigation team starts an investigation as soon as it receives an accepted case. After the investigation, it should comprehensively determine whether the content of the case is specific or general on a case-by-case basis. If the content is specific and meets the criteria for filing a case, an investigation report must be submitted to state whether the case has been reported before the case can be closed; if the content is vague and does not meet the criteria for filing a case, there is no need to submit an investigation report. It should be noted that the case does not meet the criteria for filing a case. Therefore, the case has been closed.
Investigation procedures
The investigation team may question the whistleblower, the person being reported, or relevant personnel by email, phone, video, or in person, and shall keep records of the inquiries in an appropriate manner.
Protection mechanism and confidentiality measures
All investigators shall have the obligation to keep the investigation process and related information confidential (including but not limited to taking | |
68 -

Evaluation Item	Implementation Status			Deviations from the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
(3) Does the Company provide proper whistleblower protection?	V		appropriate measures to protect the identity of the whistleblower and the content of the report from disclosure or awareness), and shall not publish or discuss it with third parties without authorization. Violators, their participation in the investigation should be terminated and they should be punished accordingly under the Company’s personnel regulations.

(3) The Company strictly prohibits any form of retaliation in corruption investigations and management practice norms. In order to protect the whistleblower, the Company clearly stated in the Company’s corruption investigations and management practice norms that the Company will protect the whistleblower from any retaliation caused by the report, and prohibits colleagues from taking any retaliation measures. In the course of the investigation, the investigation team did abide by the relevant provisions of the confidentiality of the informant’s identity and anonymous reporting, strictly abided by the standard operating procedures for the investigation of the report, and related confidentiality mechanisms, to protect the confidentiality of the informant’s identity, so that the informant would not suffer from the report improper disposal. | |
| 4. Strengthening information disclosure
Does the Company disclose its ethical corporate management policies and the results of its implementation on the Company’s website and MOPS? | V | | The Company discloses the Ethical Corporate Management Best Practice Principles on the Company’s official website and MOPS. It also discloses related information about operational integrity and implements results in the ESG Report and official website. | No significant difference compared to the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies |
| 5. If the Company has established the ethical corporate management policies based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy between the policies and their implementation.

The Company has enacted Ethical Corporate Management Best Practice Principles for Innolux Corporation in accordance with Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies, and disclosed on the official website and MOPS. All of the Company’s colleagues and affiliates are required to comply with these provisions, there is not conformity with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies. | | | | |
| 6. Other important information to facilitate a better understanding of the ethical corporate management operation of the Company (e.g., review and amend its policies.):
(1) Strictly abide by the business conduct regulations and other relevant regulations for listing companies as the basis for the implementation of integrity management, and continue to identify and update the regulations to ensure the implementation of the regulations.
(2) The Company continues to conduct business ethics regulatory risk assessments every year, and implements the Company’s business ethics risk management through the internal control system. | | | | |

69 -

2.3.9 Other Important Information Regarding Corporate Governance

The Company has established the Procedures for Handling Material Inside Information that clearly regulates the handling and disclosure of important internal information. Relevant procedures are regularly reviewed to meet the current laws and regulations and the practical management needs, and internal announcements have been made in the Company along with relevant trainings for all employees.
The Company began to plan the introduction of Taiwan Intellectual Property Management System (TIPS) at the end of 2021, and passed the TIPS-AA certification on October 6, 2024, and was one of the two companies that passed the TIPS-AA certification in 2024. Since its first participation in TIPS-A certification in 2022, the Company has been progressing step by step in accordance with the established plan. In 2024, we will further integrate intellectual property management with ESG, fully demonstrating our commitment to intellectual property protection, improving intellectual property management, and implementing corporate sustainability. In accordance with the TIPS system, we will continue to implement relevant management requirements and internal operating mechanisms to ensure the effectiveness and sustainability of the intellectual property management system.

In order to strengthen our competitive edge, the Company continues to combine operational objectives and R&D resources to formulate intellectual property strategies and to implement intellectual property deployment and protection measures. In particular, we have established tactic deployment strategies for intellectual property management (including patent education and training, proposed evaluation mechanism, incentive system, post-approval evaluation, and patent revitalization strategy), and have also established a patent management system to create a comprehensive patent control framework to strengthen the control, utilization, and deployment of patents. As of printed date of annual report, the Company has an aggregate of approximately 14,909 patents worldwide. (Including jointly owned cases)

In addition, for trademarks, copyrights, and trade secrets, the Company continues to actively perform trademark examination and arrangement in accordance with the relevant management regulations. As of printed date of annual report, the Company has obtained 67 registered trademarks worldwide. In addition, we control trade secrets and copyrights through strict security measures, and further extend the protection of all intellectual property to effectively control and integrate the superior resources of intellectual property, strengthen the Company's competitiveness, and ensure the competitive advantage.

The implementation of the Company's 2025 intellectual property management plan was reported to the Board of Directors on March 10, 2026.

70 -

Status of Directors' participation in corporate governance related courses and trainings in 2025:

Title	Name	Date	Sponsoring Organization	Course	Hours
Chairman	Jin-Yang Hung	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Director	Chu-Hsiang Yang	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Director	Hung-Wen Yang	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Director	Chi-Chia Hsieh	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.08.10	Taiwan Corporate Governance Association	ESG-related legal issues that the board of directors should consider	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Independent Director	Yong-Fen Hsieh	2025.04.29	Taiwan Corporate Governance Association	Smart manufacturing trends and the application of digital technology in business management	3
		2025.06.04	Taiwan Institute of Directors	2025 Board of Directors Association Annual Meeting - A Benchmark in the Era of Co-governance	3
		2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Independent Director	Chih-I Wu	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3

Title	Name	Date	Sponsoring Organization	Course	Hours
Independent Director	Chih-Wei Wu	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Independent Director	Hsin-Bei Shen	2025.06.10	TWSE	Strengthening climate information disclosure to enhance corporate climate resilience	3
		2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Independent Director	Feng-Kan Chang	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3

Status of senior executives participating in corporate governance related courses and trainings in 2025:

Title	Name	Date	Sponsoring Organization	Course	Hours
Chairman & CEO	Jin-Yang Hung	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
President & COO	Hung-Wen Yang	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Vice President	Tai-Chi Pan	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Vice President	Ching-Wen Huang	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3

Title	Name	Date	Sponsoring Organization	Course	Hours
Vice President	Yu-Shui Guo	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025
Vice President	Yi-Long Lin	2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025
Financial Officer	Wei-Cheng Chiu	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Accounting Officer	Rou-Li Cheng	2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
Corporate Governance Officer	Chih-Huang Chang	2025.02.21	Taipei Foundation of Finance(TFF)	Corporate Governance : Leveraging Carbon, Green, and Sustainable Finance in Financial Transformation	3
		2025.04.18	Taipei Foundation of Finance(TFF)	Corporate Governance :Duties and Liabilities of Directors and Supervisors under the Securities and Exchange Act	3
		2025.05.16	Taipei Foundation of Finance(TFF)	AI Issues:Business Value and Digital Risks of Generative AI	3
		2025.07.31	Association of Corporate Operation and Sustainability Development,	Trade Secret Protection and Defense Strategies	3
		2025.08.22	Taipei Foundation of Finance(TFF)	Financial Governance for Directors : Reading Financial Reports and Managing Risks	3
		2025.09.19	Taipei Foundation of Finance(TFF)	Avoiding Virtual Currency Risks : 2025 Sustainable Development Trends and Risks	3
		2025.11.07	Association of Corporate Operation and Sustainability Development,	Building Resilient Enterprises : Sustainability Risks and Trends for 2025	3
		2025.11.21	Taipei Foundation of Finance(TFF)	Corporate Governance from a Legal Perspective : Essential Business Risks and Liabilities for Directors	3
		2025.12.15	Taipei Foundation of Finance(TFF)	2026 Transition: Key Highlights from Corporate Governance Evaluation to ESG Rating	3

73 -

Certification Details of Employees, whose Jobs are Related to the Release of the Company's Financial Information

Certification	Number of Employees
	Finance& Accounting	Internal Audit
Certified Public Accountant, CPA	1	—
Certified Internal Auditor, CIA	1	2
Chartered Financial Analyst, CFA	1	—
Certified Management Accountant, CMA	5	—
Tax Advisor, TA	3	—
Financial Risk Manager, FRM	1	—
Chinese Certified Public Accountant, CPA	1	—
Senior Securities Specialist	8	—
Securities Specialist	6	1
Internal controller test of SFI	3	1
Basic Competency Test of Corporate Governance of SFI	2	—
Basic Competency Test of Sustainable Development of SFI	1	—
International Certificate Professional in Sustainability-related Disclosure Management	1	—

Succession planning and operation of Board members and important management members

The Company implements the diversification policy of Board members in accordance with the corporate governance code of practice. There are currently 9 directors (including 5 independent directors), all of whom have industry knowledge and international market views, and are good at leadership, operational judgment, operation management, crisis management and other professional capabilities. Two of them concurrently serve as senior management of the Company. In the future, the composition structure of the Board of Directors of the Company and the experience background of members will continue the current structure. The annual "Board Performance Evaluation Results" will be used as a reference for the nomination of directors for renewal.

Regarding the succession planning of the Board of Directors, the Company cultivates high-level managers to enter the Board to familiarize them with the operations of the Board and the business of the Company's units, and deepen their industry experience through work rotation. At present, the Company has many high-level management professionals, so the Company has ample talent pool to be appointed as future directors. In addition to considering diversity, it will focus on gender equality and possess the knowledge, skills and literacy necessary for performing duties.

The Company adheres to embracing change and leading the market demand, with the three main directions of "cultivating innovation and arranging succession", "deploying the leadership team" and "deepening the depth of positions". In addition to excellent work ability, the successors should also have the values consistent with those of the Company.

Based on the talents' future development and potential ability, the succession cultivation plan is divided into the three stages of experience cultivation, agency and observation, and formal succession. During the period, courses and action learning, project assignment and management authorization, and assignment and rotation are provided, and the feasibility of formal succession is assessed through performance evaluation and high-level personnel review. In addition to internal learning, senior executives and potential talents are also encouraged to study in top universities to deepen the knowledge and ability of business management.

74 -

75 -

2.2.10 Internal Control System

Statement of internal control system

Please go to the MOPS (https://mops.twse.com.tw) and click on "Single Company" under "Corporate Governance" and "Company Regulations/Internal Control" and click on the internal control statement announcement for query.

Hire an accountant to audit the Company’s internal control system and disclose the audit report made by accountants: None.