Stock Code: 3003

K.S. TERMINALS INC.

KST®

2025 Annual Report

Printed May 12, 2026

This Annual Report is Available At
http://mops.twse.com.tw
http://www.ksterminals.com.tw

Spokesperson: Tseng Yu-Chin

Title: Chief of Finance Division and Corporate Governance Officer

Tel.: 04-7580001

Email: [email protected]

Deputy Spokesperson: Huang Shu-Wen

Title: Assistant Manager, Finance Department

Tel.: 04-7580001

Email: [email protected]

Address and Telephone Number of the Company and Factories

Head Office and Connector Division: No. 8, Zhangbin East 3rd Road, Xianxi Township, Changhua County, Taiwan (R.O.C.)

Tel.: 04-7580001

Stock Transfer Agency

Name: Stock Agency Department, KGI Securities Co. Ltd.

Address: 5F., No. 2, Section 1, Chongqing South Road, Zhongzheng District, Taipei City, Taiwan (R.O.C.)

Website: http://www.kgieworld.com.tw

Tel.: 02-23148800

CPAs For the Most Recent Financial Report

Names: CPAs Chen Ming-Hung, Huang Yu-Ting

Accounting Firm: EY Taiwan

Address: 26F., No. 186, Shizheng North 7th Road, Xitun District, Taichung City, Taiwan (R.O.C.)

Website: http://www.ey.com/zh_tw

Tel.: 04-2259 8999

Name of overseas exchange where securities are listed and method of inquiry: None.
Company Website: http://www.ksterminals.com.tw

I. Report to the Shareholders
1 2025 Business Report
2 2026 Business Plan Overview
3 Company's Future Development Strategy
4 Impact of the External Competitive Environment, Regulatory Environment, and Overall Business Environment

II. Corporate Governance Report
1 Information Concerning the Directors, President, Vice President, Assistant Vice President, and Department and Branch Managers
2 Remuneration Paid to Directors, General Manager, and Deputy General Manager in the Most Recent Year:
3 Corporate Governance
4 Information on CPA Fees
5 Information on Replacement of CPAs
6 The Company's Chairman, President, or any manager in charge of finance or accounting matters in the most recent year holding a position at the Company's CPA accounting firm or at an affiliate of such an accounting firm.
7 Any transfer of equities and/or pledge of or change in equities by a director, manager, or shareholder with a stake of more than 10% in the most recent year and up to the publication date of the Annual Report
8 Information on whether the top ten shareholders by shareholding ratio are related parties, spouses, or relatives within the second degree of kinship to one another
9 The total number of shares and total equity stake held by the same investee by the Company, its directors, managers, and any companies controlled either directly or indirectly by the Company

III. Fundraising Status
1 Capital and Shares
2 Issuance of Corporate Bonds
3 Issuance of preferred shares
4 Issuance of Global Depository Receipts
5 Employee Share Subscription Warrants
6 New Restricted Employee Shares
7 Issuance of New Shares in Connection With Mergers or Acquisitions or With Acquisitions of Shares of Other Companies
8 Implementation of the Capital Allocation Plan

IV. Overview of Operations
1 Description of the Business
2 Market and Production/Sales Overview
3 Employee statistics for the most recent two years up to the Annual Report publication date
4 Information on Environmental Protection Expenditure
5 Labor Relations
6 Cyber Security Management
7 Important Contracts

V. Review and Analysis of Financial Position and Financial Performance and Risk Matters
1 Financial position
2 Financial performance

3 Cash Flow 96
4 Effect of material capital expenditure in the most recent year on the financial status 96
5 Investment policy for the most recent year, main causes of profits or losses, improvement plans and investment plans for the coming year 96
6 Risk management and evaluation 98
7 Other important matters 101

VI. Special Disclosures 102
1 Information on affiliates 102
2 Any private placement of securities within the most recent year and up to the date of the publication of this annual report 106
3 Additional information required to be disclosed 106

VII. If any of the situations listed in Article 36, paragraph 3, subparagraph 2 of the Act, which might materially affect shareholders' equity or the price of the company's securities, has occurred during the most recent year or during the current year up to the date of publication of the annual report 106

I. Report to the Shareholders

Dear Shareholders,

In 2025, the global economy exhibited a trend of “high volatility and divergent growth.” Driven by advancements in artificial intelligence (AI), technological innovation became a key force supporting economic growth. However, rising trade protectionism reshaped global supply chains, resulting in weaker performance in the manufacturing and traditional industries. Taiwan’s economic growth rate reached 8.68% in 2025, marking a 15-year high, primarily driven by the robust development of the semiconductor and AI industries.

Against this backdrop, the Company continued to advance the development and sales of its core products, including EV charging connectors and energy storage connectors. It also initiated the establishment of a manufacturing facility in India while continuing to expand production capacity at its Thailand plant to diversify geopolitical and trade risks. At the same time, the Company actively strengthened its local sales teams in Southeast Asia and deepened collaboration with automakers and system integrators. Although revenue declined slightly compared to the previous year, the Company has proactively implemented various operational strategies to lay a solid foundation for future growth.

1. 2025 Business Report

In 2025, the Company’s revenue amounted to NTD 4,396 million, representing a decrease of 3.28% compared to NTD 4,545 million in 2024.

Operating profit was NTD 290 million, representing a decrease of 54.96% compared to NTD 644 million in 2024.

Net profit after tax was NTD 170 million, representing a decrease of 72.34% compared to NTD 613 million in 2024.

Earnings per share (EPS) was NTD 0.99.

(1) Results of the Implementation of the Business Plan:

Unit: NTD thousand

Item	2025 Actual Number	2024 Actual Number	Increase (Decrease) Percentage (%)
Operating income	4,396,105	4,544,959	(3.28)
Operating Costs	3,421,665	3,238,495	5.66
Operating Gross Profit	974,440	1,306,464	(25.41)
Operating Expenses	684,336	662,354	3.32
Operating Profit	290,104	644,110	(54.96)
Profit Before Tax	268,513	851,220	(68.46)
Profit After Tax	169,540	612,984	(72.34)

(2) Revenue, Expenses, and Profitability Analysis
Unit: NTD thousand

Analysis Item		2025	2024
Financial Income and Expenses	Interest Income	36,005	59,287
	Interest Expenditure	14,058	16,966
Profitability Analysis	Return on Assets (%)	2.16	7.49
	Return on Shareholders’ Equity (%)	2.55	9.42
	Operating Income to Paid-in Capital Ratio (%)	18.64	41.38
	Net Income Before Tax to Paid-in Capital Ratio (%)	17.25	54.69
	Net Profit Margin (%)	3.86	13.49
	Earnings per Share After Tax (NTD)	0.99	3.88

(3) Performance in Research and Development

A. Continued the development of high-power DC charging connectors and vehicle inlets.
B. Connectors for green energy and energy storage systems.
C. HVDC 380 V and 1000 V terminal solutions for AI data center infrastructure.
D. BESS 1500 V DC high-capacity terminal solutions for AI data center infrastructure.

2026 Business Plan Overview

(1) Business Policy

A. Overseas Capacity Deployment: Continue to advance the establishment of overseas production bases. The India plant has entered the equipment installation and trial production stage, while the Thailand plant continues to expand its capacity to meet regional demand.
B. Market Deepening: Strengthen local business teams in Southeast Asia and deepen strategic cooperation with international automakers and system integrators.
C. Supply Chain Resilience Management: Implement regionalized production and diversified manufacturing locations through a strategic sourcing center to effectively hedge against trade barriers and geopolitical risks.
D. Smart Manufacturing Upgrade: Introduce a manufacturing execution system (MES) to integrate automated equipment operations, enable real-time monitoring, and improve production yield and operational efficiency.
E. ESG and Sustainable Development: Promote carbon inventories and Task Force on Climate-Related Financial Disclosures (TCFD) initiatives, and implement carbon reduction pathways to align with international sustainability standards.

(2) Key Marketing Policies

A. Expand product lines related to EVs, energy storage systems (ESS), and AI data centers, and strengthen highly customized design capabilities.

B. Form strategic alliances with external professional partners to optimize cost structures and accelerate new product introduction (NPI).

C. Enhance global brand recognition and provide comprehensive services ranging from front-end design to back-end technical support.

Company’s Future Development Strategy

(1) Market Expansion: Deepen the Company’s presence in key markets in Southeast Asia and India.

(2) Product Development: Focus on the development of DC charging connectors (and inlets), high-current connectors, hybrid terminals, and ultra-large gauge terminals to maintain technological leadership.

(3) Sustainability Governance: Complete carbon inventories across domestic and overseas facilities, promote a green supply chain, and introduce renewable energy to enhance ESG competitiveness in international markets.

(4) Flexible Supply Chain: Leverage a strategic sourcing center and integrate localized supply systems to ensure a stable supply of key components and maintain cost competitiveness.

Impact of the External Competitive Environment, Regulatory Environment, and Overall Business Environment

In 2026, the primary challenges facing the global economy remain tariff-related trade conflicts and supply chain volatility driven by geopolitical factors. However, the global transition toward green energy and the widespread adoption of AI technologies will continue to drive long-term growth in the EV and energy storage industries. The Company has proactively completed adjustments to its global production capacity and possesses strong adaptability and competitive advantages.

The continued support and trust of our shareholders are the greatest driving forces behind the Company’s progress. We will uphold our principles of integrity, quality, and sustainability, and continue to enhance our research and development and manufacturing capabilities to create greater value for our shareholders.

We wish all shareholders good health and continued success in all their endeavors.

Sincerely,

Chairman Cheng Ke-Pin

II. Corporate Governance Report

Information Concerning the Directors, President, Vice President, Assistant Vice President, and Department and Branch Managers

(1) Director:
A. Information on Directors

April 13, 2026

Title	Nationality or Place of Registration	Name	Gender Age	Date of Election (appointment)	Term (years)	Date First Elected	Shareholding When Elected		Current Shareholding		Current Shareholding of Spouse and Minor Children		Shareholding Through Nominee		Principal Work Experience and Education	Position(s) Held Concurrently in the Company and/or in any Other Company	Executives, Directors, or Supervisors Who Are Spouses or Relatives Within Two Degrees of Kinship With Another			Notes
							Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)			Title	Name	Relationship
Chairman	Taiwan	JING BAO INVESTMENT CO., LTD.	-	June 6, 2024	3 years	June 6, 2024	2,568,000	1.65%	2,642,000	1.70%	-	-	-	-	-	-	-	-	-	The President is not the most senior person in the Company; the Chief Technology Officer (CTO) is.
	Taiwan	Representative: Cheng Ke-Pin	Male (71-80 years old)	June 6, 2024	3 years	June 15, 2000	-	-	670,014	0.43%	88,657	0.06%	4,692,000	3.02%	Chairman, K.S. TERMINALS INC. Junior High School	Note 1	Director President	Cheng Yu-Liang Cheng Chieh-Yuan	Brothers Father and Son
Director	Taiwan	Cheng Yu-Liang	Male (71-80 years old)	June 6, 2024	3 years	June 15, 2000	6,780,191	4.36%	3,780,191	2.43%	-	-	6,072,103	3.90%	President of K.S. TERMINALS INC. Elementary School	Note 1	Chairman	Cheng Ke-Pin	Brothers
Director	Taiwan	Cheng I-Tien	Male (41-50 years old)	June 6, 2024	3 years	June 15, 2000	2,964,541	1.90%	2,964,541	1.90%	-	-	-	-	British Columbia Institute of Technology Project Manager, K.S. Terminals Inc.	Note 1	-	-	-
Director	Taiwan	Cheng Chieh-Yuan	Male (41-50 years old)	June 6, 2024	3 years	June 6, 2024	3,926,057	2.52%	3,926,057	2.52%	416,000	0.27%	-	-	Department of Intelligence, Tokyo University of Information Sciences President of K.S. TERMINALS INC.	Note 1	Chairman	Cheng Ke-Pin	Father and Son

Title	Nationality or Place of Registration	Name	Gender Age	Date of Election (appointment)	Term (years)	Date First Elected	Shareholding When Elected		Current Shareholding		Current Shareholding of Spouse and Minor Children		Shareholding Through Nominee		Principal Work Experience and Education	Position(s) Held Concurrently in the Company and/or in any Other Company	Executives, Directors, or Supervisors Who Are Spouses or Relatives Within Two Degrees of Kinship With Another
							Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)			Title	Name	Relationship
Director	Taiwan	Cheng Wen-Shuo	Male (31-40 years old)	June 6, 2024	3 years	June 6, 2024	5,541,963	3.56%	2,861,963	1.84%	8,000	0.01%	2,680,000	1.72%	Department of Economics, University of British Columbia
Manager of the Sales Division, K.S. Terminals Inc.	Note 1	Director	Cheng Yu-Liang	Father and Son
Independent Director	Taiwan	Lee Yi-Lung	Male (71-80 years old)	June 6, 2024	3 years	June 12, 2018	-	-	-	-	-	-	-	-	Chairman, TERA AUTOTECH CORPORATION PhD, Department of Electrical Engineering, National Changhua Normal University
Adjunct Professor, Department of Electrical Engineering, National Changhua Normal University	Note 1	-	-	-
Independent Director	Taiwan	Hsu Ching-Tao	Male (61-70 years old)	June 6, 2024	3 years	June 14, 2002	-	-	-	-	-	-	-	-	Feng Chia University, Bachelor of Accounting Senior Manager, President Securities Corporation	Note 1	-	-	-
Independent Director	Taiwan	Chen Mao-Tang	Male (71-80 years old)	June 6, 2024	3 years	June 6, 2024	-	-	-	-	-	-	-	-	National Taiwan University, Bachelor Mechanical Engineering Technical University of Berlin, Graduate Responsible person of Bailin Enterprise Consulting Co., Ltd.	Note 1	-	-	-
Independent Director	Taiwan	Wu Mei-Yuan	Female (61-70 years old)	June 6, 2024	3 years	June 6, 2024	-	-	-	-	-	-	-	-	National Chung Hsing University, Bachelor of Accounting KGI Securities Co., Ltd.
Capital Markets Associate Director	Note 1	-	-	-

Note 1:

List of Directors	Position(s) Held Concurrently in the Company and/or in any Other Company
Cheng Ke-Pin	Chairman of the Company, Chairman of Jing Bao Investment Co., Ltd., Chairman of Caiying Investment Co., Ltd.
Cheng Yu-Liang	CTO of the Company, Chairman of SHERNG YII CO., LTD., Director of CHI RUI (CAYMAN) HOLDING LIMITED, Chairman of Li Chuan Investment Co., Ltd.
Cheng I-Tien	Project Manager of the Company, Director of CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD, Director of SONG XIN INVESTMENT CO., LTD., Chairman of Hailin Investment Limited
Cheng Chieh-Yuan	General Manager of the Company, Supervisor of SAN MAO Investment Co., Ltd., Chairman of Huangqi Investment Co., Ltd., Chairman of Yuanhong Investment Co., Ltd., Chairman of Jieju Investment Co., Ltd., Chairman and General Manager of K.S. Terminals USA LLC
Cheng Wen-Shuo	Special Assistant to the Company, Director of Huihong Investment Co., Ltd., Director of Juyuan Investment Co., Ltd., Chairman of Yongyuan Investment Co., Ltd., Director of Jurui Investment Co., Ltd., Director of Sanmao Investment Co., Ltd., Director of KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED
Lee Yi-Lung	Chairman, TERA AUTOTECH CORPORATION
Hsu Ching-Tao	None
Chen Mao-Tang	Responsible Person of Bailin Enterprise Consulting Co., Ltd., Independent Director of GMT Global Inc., Supervisor of Fuho Technology Co., Ltd., Director of Shenpo Ancient Scripture Cultural Foundation
Wu Mei-Yuan	Independent Director of Yao-I Fabric Co., Ltd., Independent Director of Central Taiwan Science Park Logistics Co., Ltd.

B. Major Shareholders of Corporate Shareholders
May 12, 2026

Corporate Shareholder Name	Major Shareholders of Corporate Shareholders
JING BAO INVESTMENT CO., LTD.	Cheng Ke-Pin (84.42%), Nien Mei-Chu (15.58%)

May 12, 2026
C. Disclosure of Information on Professional Qualifications of Directors and Independence of Independent Directors

| Qualifications
Name | Professional Qualification and Experience | State of Independence | Number of Public Companies in Which the Director or Supervisor Concurrently Serves as an Independent Director |
| --- | --- | --- | --- |
| Lee Yi-Lung | With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act. Experience: Chairman of TERA AUTOTECH CORPORATION, Adjunct Professor of the Department of Electrical Engineering, Changhua Normal University | ◎ Independent Director of the Company, meeting the independence criteria.
◎ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship.
◎ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years. | None |
| Chen Mao-Tang | With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act. Major experience: Responsible person of Bailin Enterprise Consulting Co., Ltd.; Remuneration Committee Member of K.S. TERMINALS INC.; General Manager of Heng Tai Consumables Group Ltd.; Engineer and Production Capacity Manager of Berlin Company, Germany | ◎ Independent Director of the Company, meeting the independence criteria.
◎ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship.
◎ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years. | 1 |

| Qualifications
Name | Professional Qualification and Experience | State of Independence | Number of Public Companies in Which the Director or Supervisor Concurrently Serves as an Independent Director |
| --- | --- | --- | --- |
| Hsu Ching-Tao | With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act. Experience: President Securities Corp., Senior Manager, Supervisor of K.S. TERMINALS INC. | ☐ Independent Director of the Company, meeting the independence criteria.
☐ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship.
☐ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years. | None |
| Wu Mei-Yuan | With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act. Experience: Capital Markets Associate Director of KGI Securities Co., Ltd. | ☐ Independent Director of the Company, meeting the independence criteria.
☐ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship.
☐ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years. | 2 |

D. Diversity and Independence of the Board of Directors:

(A) Diversity of the Board of Directors

The diversity goal for the Company's Board of Directors is to have at least 5 directors, with the number of directors who also serve as managers not exceeding one-third of the total Board members. Additionally, the Board must include at least 3 independent directors, who must make up no less than one-fifth of the total Board members. The Company currently has 9 directors, including 1 female director. The implementation of diversity among all directors is as follows:

5 non-independent directors and 4 independent directors; 44% of the directors are independent directors.
Current Board members are 89% male and 11% female. (Note 1)
Board of Directors age distribution: 4 directors over 71 years old, 2 directors between 61 and 70 years old, and 3 directors under 50 years old.
By tenure, 4 directors have served for more than 10 years, 1 director has served for 3 to 9 years, and 4 directors have served for 3 years or less.
The core of diversity of each director:

| Diversity Core Item
Director Name | Operations Management | Leadership and Decision-making | Industrial Knowledge | Financial Accounting |
| --- | --- | --- | --- | --- |
| Director Cheng Ke-Pin | V | V | V | |
| Director Cheng Yu-Liang | V | V | V | |
| Director Cheng I-Tien | V | | | |
| Director Cheng Chieh-Yuan | V | V | V | |
| Director Cheng Wen-Shuo | V | | V | |
| Independent Director Lee Yi-Lung | V | | | |
| Independent Director Chen Mao-Tang | V | | | V |
| Independent Director Hsu Ching-Tao | V | | | V |
| Independent Director Wu Mei-Yuan | V | | | V |

Note 1: The composition of the Company's Board of Directors is primarily determined based on candidates' professional backgrounds and experience, as well as the Company's future development needs. No specific gender ratio has been established. In future Board elections, the Company will continue to seek qualified female director candidates to promote gender equality among Board members.

(B) Independence of the Board of Directors:

The election procedure for the Company’s directors is open and fair, in accordance with the provisions prescribed in the Company’s “Articles of Incorporation,” “Procedures for Election of Directors,” “Corporate Governance Best-Practice Principles,” “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies,” and Article 14-2 of the “Securities and Exchange Act.” The current Board of Directors is made up of 4 independent directors (44%) and 5 non-independent directors (56%).

The Company’s Board of Directors guides company strategies, supervises management, and is responsible to the Company and its shareholders. As for the various operations and arrangements of the corporate governance system, the Board of Directors exercises its authority in accordance with the applicable laws, Articles of Incorporation, and resolutions adopted at shareholders’ meetings. Our 4 independent directors comply with all regulatory requirements. Coupled with the authority of the Audit Committee, the independent directors review the control of the Company’s existing or potential risks to ensure the effective implementation of the Company’s internal controls, selection (dismissal), and independence of CPAs, and the fair preparation of financial statements. In addition, according to the method for the election of directors and independent directors stipulated in the Company’s “Procedures for Election of Directors,” the Company adopts the candidate nomination system, in which we encourage shareholders to take part. Shareholders holding a certain number of shares may propose a list of candidates. The qualifications of the candidates must be reviewed, and candidates must not violate any of the matters listed in Article 30 of the Company Act. The acceptance and announcement of director candidates are conducted in accordance with the law to protect the rights and interests of shareholders and to maintain independence.

We have established a performance evaluation system for the Board of Directors. An internal self-evaluation of the Board of Directors and a self-evaluation of individual Board members are performed once a year. The evaluation results are disclosed in the Company’s annual report.

(2) Information Concerning the President, Vice President, Assistant Vice President, and Department and Branch Managers:
April 13, 2026

Title	Nationality	Name	Gender	Date of Election (appointment)	Shareholding		Shareholding of Spouse and Minor Children		Shareholding Through Nominee		Principal Work Experience and Education	Concurrent Positions in Other Companies	Managers Who Are Spouses or Relatives Within the Second Degree of Kinship			Notes
					Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)			Title	Name	Relationship
CTO	Taiwan	Cheng Yu-Liang	Male	January 1, 2013	3,780,191	2.43%	-	-	6,072,103	3.90%	General Manager of K.S. Terminals Inc. Elementary School	Chairman of SHERNG YII CO., LTD., Director of CHI RUI (CAYMAN) HOLDING LIMITED, Chairman of Li Chuan Investment Co., Ltd.	-	-	-	The president is not the most senior person in the Company; the Chief Technology Officer (CTO) is.
President	Taiwan	Cheng Chieh-Yuan	Male	December 27, 2019	3,926,057	2.52%	416,000	0.27%	-	-	Vice President of K.S. TERMINALS INC. Department of Intelligence, Tokyo University of Information Sciences	Supervisor of SAN MAO INVESTMENT CO., LTD., Chairman of HUANGQI INVESTMENT CO., LTD., Chairman of YUAN HONG INVESTMENT CO., LTD., Chairman of JIEJU INVESTMENT CO., LTD., Chairman and General Manager of K.S. Terminals USA LLC.	-	-	-
Chief of Finance Division and Corporate Governance Officer	Taiwan	Tseng Yu-Chin	Female	March 14, 1999	-	-	-	-	-	-	Director of Finance Division and Corporate Governance Officer of K.S. Terminals Inc. MBA, Changhua Normal University	-	-	-	-

Note 1: Information on the president, vice president, assistant vice president, and the heads of all company divisions and branch units, as well as persons holding positions equivalent to that of the president, vice president, or assistant vice president (regardless of their job titles), shall also be disclosed.
Note 2: Experience related to the current position; if the person has worked for the Company's CPA firm or its affiliates during the aforementioned period, please specify their job title and the duties performed.
Note 3: Where the Chairman of the Board of Directors and the president or a person in an equivalent post (the highest-level manager) of the Company are the same person, spouses, or relatives within the first degree of kinship, an explanation (e.g., the method of increasing the number of independent directors so that a majority of the directors do not serve as an employee or manager) shall be given regarding the reason for, the reasonableness of, the necessity thereof, and the measures adopted in response thereto.

Remuneration Paid to Directors, President, and Vice President in the Most Recent Year:
(1) Remuneration to Directors
Unit: NTD thousand

| Title | Name
(Note 11) | Remuneration to Directors | | | | | | | Sum of A, B, C, and D, and as a percentage of profit after tax (%)
(Note 9) | Remuneration as Company Employees | | | | | | | | Sum of A, B, C, D, E, F, and G, and as a percentage of profit after tax (%)
(Note 9) | Remuneration From
Investees Other
Than Subsidiaries or
the Parent Company | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Remuneration
(A)
(Note 1) | | Pension
(B) | | Remuneration
to
Directors (C)
(Note 2) | | Fines for
Professional
Practice
(D)
(Note 3) | | | | Salary, Bonuses,
and Special
Allowances (E)
(Note 4) | | Severance
Pay and
Pension
(F) | | Remuneration to Employees (G)
(Note 5) | | | | | | | | |
| | | The Company | All Companies
Included in the
Financial Reports
(Note 6) | All Companies
Included in the Financial
Reports
(Note 6) | The Company | All Companies
Included in the Financial
Reports
(Note 6) | All Companies
Included in the Financial
Reports
(Note 6) | Total | The Company | | All Companies
Included in the
Financial Reports
(Note 6) | The Company | All Companies
Included in the
Financial Reports
(Note 6) | The Company | | All Companies
Included in the
Financial Reports
(Note 6) | The Company | | | All Companies
Included in the
Financial Reports
(Note 6) | | | | |
| | | | | | | | | | Ratio
(%) | Total | Ratio
(%) | | | Cash
Amount | Share
Amount | Cash
Amount | Share
Amount | Total | | Ratio
(%) | | | | |
| Chairman | Cheng Ke-Pin | - | - | - | - | - | 30 | 30 | 30 | 0.02 | 30 | 0.02 | 6,380 | 6,380 | - | - | - | - | - | 6,410 | 4.17 | 6,410 | 4.17 | None |
| Director | JING BAO
INVESTMENT CO.,
LTD. | - | - | - | 1,000 | 1,000 | - | - | 1,000 | 0.65 | 1,000 | 0.65 | - | - | - | - | - | - | - | 1,000 | 0.65 | 1,000 | 0.65 | |
| Director | Cheng Yu-Liang | - | - | - | 1,000 | 1,000 | 30 | 30 | 1,030 | 0.67 | 1,030 | 0.67 | 5,302 | 5,302 | - | - | 653 | - | 653 | - | 6,985 | 4.54 | 6,985 | |
| Director | Cheng Chieh-Yuan | - | - | - | 500 | 500 | 30 | 30 | 530 | 0.34 | 530 | 0.34 | 5,546 | 5,546 | 108 | 108 | 536 | - | 536 | - | 6,720 | 4.37 | 6,720 | |
| Director | Cheng Wen-Shao | - | - | - | 500 | 500 | 30 | 30 | 530 | 0.34 | 530 | 0.34 | 1,181 | 1,181 | 983 | 983 | - | - | - | - | 2,694 | 1.75 | 2,694 | |
| Director | Cheng I-Tien | - | - | - | 500 | 500 | 30 | 30 | 530 | 0.34 | 530 | 0.34 | 777 | 777 | 961 | 961 | - | - | - | - | 2,268 | 1.47 | 2,268 | |
| Independent
Director | Lee Yi-Lung | 515 | 515 | - | - | 500 | 500 | 30 | 30 | 1,045 | 0.68 | 1,045 | 0.68 | - | - | - | - | - | - | - | 1,045 | 0.68 | 1,045 | |
| Independent
Director | Hsu Ching-Tao | 515 | 515 | - | - | 500 | 500 | 30 | 30 | 1,045 | 0.68 | 1,045 | 0.68 | - | - | - | - | - | - | - | 1,045 | 0.68 | 1,045 | |
| Independent
Director | Chen Mao-Tang | 515 | 515 | - | - | 500 | 500 | 30 | 30 | 1,045 | 0.68 | 1,045 | 0.68 | - | - | - | - | - | - | - | 1,045 | 0.68 | 1,045 | |
| Independent
Director | Wu Mei-Yuan | 515 | 515 | - | - | 500 | 500 | 30 | 30 | 1,045 | 0.68 | 1,045 | 0.68 | - | - | - | - | - | - | - | 1,045 | 0.68 | 1,045 | |

Please describe the independent directors' remuneration policy, system, standards, and structure, and explain the factors such as the independent directors' duties, risks, and invested time connected to the remuneration amount:
In addition to the disclosure in the table above, in the most recent year, the remuneration received by directors for providing services: None

Range of Remuneration

Range of Remuneration to Each Director of the Company	Director Name
	Total Remuneration (A + B + C + D)		Total Remuneration (A + B + C + D + E + F + G)
	The Company (Note 7)	All Companies Included in the	The Company (Note 7)	All Companies Included in the
Below NTD 1,000,000	Cheng Ke-Pin, Cheng Chieh-Yuan, Cheng Wen-Shuo, Cheng I-Tien	Cheng Ke-Pin, Cheng Chieh-Yuan, Cheng Wen-Shuo, Cheng I-Tien	-	-
NTD 1,000,000 (inclusive) – NTD 2,000,000 (exclusive)	Jing Bao Investment Co., Ltd., Cheng Yu-Liang, Lee Yi-Lung, Hsu Ching-Tao, Chen Mao-Tang, Wu Mei-Yuan	Jing Bao Investment Co., Ltd., Cheng Yu-Liang, Lee Yi-Lung, Hsu Ching-Tao, Chen Mao-Tang, Wu Mei-Yuan	Jing Bao Investment Co., Ltd., Lee Yi-Lung, Hsu Ching-Tao, Chen Mao-Tang, Wu Mei-Yuan	Jing Bao Investment Co., Ltd., Lee Yi-Lung, Hsu Ching-Tao, Chen Mao-Tang, Wu Mei-Yuan
NTD 2,000,000 (inclusive) – NTD 3,500,000 (exclusive)	-	-	Cheng Wen-Shuo and Cheng I-Tien	Cheng Wen-Shuo and Cheng I-Tien
NTD 3,500,000 (inclusive) – NTD 5,000,000 (exclusive)	-	-	-	-
NTD 5,000,000 (inclusive) – NTD 10,000,000 (exclusive)	-	-	Cheng Ke-Pin, Cheng Yu-Liang, Cheng Chieh-Yuan	Cheng Ke-Pin, Cheng Yu-Liang, Cheng Chieh-Yuan
NTD 10,000,000 (inclusive) – NTD 15,000,000 (exclusive)	-	-	-	-
NTD 15,000,000 (inclusive) – NTD 30,000,000 (exclusive)	-	-	-	-
NTD 30,000,000 (inclusive) – NTD 50,000,000 (exclusive)	-	-	-	-
NTD 50,000,000 (inclusive) – NTD 100,000,000 (exclusive)	-	-	-	-
Over NTD 100,000,000	-	-	-	-
Total	10	10	10	10

Note 1: Refers to the remuneration (including salaries, allowances, severance pay, various bonuses, and incentives) to directors in the most recent year.
Note 2: Refers to the remuneration to directors passed by the Board of Directors in the most recent year.
Note 3: Refers to the remuneration received by directors for services rendered (including travel, special allowances, various subsidies, accommodation, corporate vehicles, and other in-kind benefits).
Note 4: Refers to any salaries, allowances, severance pay, bonuses, incentives, travel allowances, special allowances, subsidies, accommodation, vehicles, and in-kind benefits received by directors in the most recent year for assuming the role of a company employee (such as president, vice president, manager, or other employee).
Note 5: Refers to any remuneration that the director has received (in cash or in shares) in the last year for assuming the role of an employee (such as president, vice president, manager, or other employee).
Note 6: The total amount of remuneration paid to each director of the Company by all companies (including the Company) in the consolidated report.
Note 7: The name of each director is disclosed within the remuneration range.
Note 8: The total amount of remuneration paid to each director of the Company by all companies in the consolidated report (including the Company) is disclosed, with the name of each director disclosed in their respective remuneration range.
Note 9: The net income after tax refers to the net income after tax of the most recent year in the parent company only or individual financial reports.
Note 10: a. This field represents remuneration received by directors from the Company's invested businesses other than subsidiaries.
b. For directors who received remuneration from invested businesses other than subsidiaries, the amounts received from these invested businesses have been added to column "T" of the remuneration range table. In this case, column "T" will be renamed "Parent Company and All Invested Businesses."
c. Remuneration refers to any remuneration and compensation (including remuneration received as an employee, director, or supervisor) and professional service fees which the Company's director received for serving as a director, supervisor, or manager in invested businesses other than subsidiaries.
* The basis of remuneration disclosed above is different from the concept of provisions prescribed in the Income Tax Act; hence, the above table has been prepared solely for information disclosure and not for tax purposes.

(2) Remuneration to the President and Vice President
Unit: NTD thousand

Title	Name	Salary (A) (Note 1)		Pension (B)		Bonuses and Special Allowances (C) (Note 2)		Employee Remuneration (D) (Note 3)				Sum of A, B, C, and D, and as a percentage of profit after tax (%) (Note 7)				Remuneration From Investees Other Than Subsidiaries or the Parent Company
		The Company	All Companies Included in the Financial Reports (Note 4)	The Company	All Companies Included in the Financial Reports (Note 4)	The Company	All Companies Included in the Financial Reports (Note 4)	The Company		All Companies Included in the Financial Reports (Note 4)		The Company		All Companies Included in the Financial Reports (Note 4)
								Cash Amount	Share Amount	Cash Amount	Share Amount	Total	Ratio (%)	Total	Ratio (%)
CTO	Cheng Yu-Liang	3,672	3,672	-	-	1,630	1,630	653	-	653	-	5,955	3.87	5,955	3.87	None
President	Cheng Chieh-Yuan	3,852	3,852	108	108	1,694	1,694	536	-	536	-	6,190	4.03	6,190	4.03	None

Range of Remuneration

Range of Remuneration to the President and Vice President	Names of President and Vice President
	The Company (Note 5)	All Companies Included in the Financial Reports (Note 6)
Below NTD 1,000,000	-	-
NTD 1,000,000 (inclusive) – NTD 2,000,000 (exclusive)	-	-
NTD 2,000,000 (inclusive) – NTD 3,500,000 (exclusive)	-	-
NTD 3,500,000 (inclusive) – NTD 5,000,000 (exclusive)	-	-
NTD 5,000,000 (inclusive) – NTD 10,000,000 (exclusive)	Cheng Yu-Liang, Cheng Chieh-Yuan	Cheng Yu-Liang, Cheng Chieh-Yuan
NTD 10,000,000 (inclusive) – NTD 15,000,000 (exclusive)	-	-
NTD 15,000,000 (inclusive) – NTD 30,000,000 (exclusive)	-	-
NTD 30,000,000 (inclusive) – NTD 50,000,000 (exclusive)	-	-
NTD 50,000,000 (inclusive) – NTD 100,000,000 (exclusive)	-	-
Over NTD 100,000,000	-	-
Total	2	2

Note 1: Refers to any salaries, allowances, severance pay, various bonuses, and incentives paid to the president and vice president in the most recent year
Note 2: Refers to various bonuses, incentives, travel allowances, special allowances, subsidies, accommodation, vehicles, in-kind benefits, and other remuneration received by the president and vice president in the most recent year.
Note 3: This refers to the total amount of employee compensation (including stock bonuses and cash bonuses) allocated to the General Manager and Deputy General Managers as approved by the Board of Directors in the most recent year.
Note 4: The total amount of remuneration paid to each president and vice president of the Company by all companies (including the Company) in the consolidated report.
Note 5: The names of the president and vice president are disclosed in the remuneration range for each president and vice president.
Note 6: The total amount of remuneration paid to each president and vice president of the Company by all companies in the consolidated report (including the Company) is disclosed, with the names of the president and vice president disclosed in their respective remuneration range.
Note 7: The net income after tax refers to the net income after tax of the most recent year in the parent company only or individual financial reports.
Note 8: a. This field represents remuneration received by the president and vice president from the Company's invested businesses other than subsidiaries.
b. For the president and vice president who received remuneration from invested businesses other than subsidiaries, the amounts received from these invested businesses have been added to column "E" of the remuneration range table. In this case, column "E" will be renamed "Parent Company and All Invested Businesses."
c. Remuneration refers to any remuneration and compensation (including remuneration received as an employee, director, or supervisor) and professional service fees which the Company's president and vice president received for serving as a director, supervisor, or manager in invested businesses other than subsidiaries.
* The basis of remuneration disclosed above is different from the concept of provisions prescribed in the Income Tax Act; hence, the above table has been prepared solely for information disclosure and not for tax purposes.

(3) Compensation of the Top Five Highest-Paid Executives of Listed Companies

Title	Name	Salary (A)		Pension (B)		Bonuses and Special Allowances (C)		Employee Remuneration (D)				Sum of A, B, C, and D, and as a percentage of profit after tax (%)				Remuneration From Investees Other Than Subsidiaries or the Parent Company
		The Company	All Companies Included in the Financial Reports	The Company	All Companies Included in the Financial Reports	The Company	All Companies Included in the Financial Reports	The Company		All Companies Included in the Financial Reports		The Company		All Companies Included in the Financial Reports
								Cash Amount	Share Amount	Cash Amount	Share Amount	Total	Ratio (%)	Total	Ratio (%)
CTO	Cheng Yu-Liang	3,672	3,672	-	-	1,630	1,630	653	-	653	-	5,955	3.87	5,955	3.87	None
President	Cheng Chieh-Yuan	3,852	3,852	108	108	1,694	1,694	536	-	536	-	6,190	4.03	6,190	4.03	None
General Manager of U.S. Subsidiary and Americas Sales Region	Huang Zheng-yuan	780	3,899	24	24	202	917	-	-	-	-	1,006	0.65	4,840	3.15	None
Deputy General Manager of India Business Division	Chen Po-Fa	1,814	2,443	79	79	833	833	-	-	-	-	2,726	1.77	3,355	2.18	None
Director of Greater China Marketing Division	Pan Jia-wei	315	1,510	22	22	0	1,242	-	-	-	-	337	0.22	2,774	1.80	None

C. Names of Managers to Whom Employee Remuneration Was Allocated, and Status of the Allocation

May 12, 2026
Unit: NTD thousand

Title		Name	Share Amount	Cash Amount	Total	Ratio of Total Amount to Profit After Tax (%)
Manager	CTO	Cheng Yu-Liang	-	1,600	1,600	1.04
	President	Cheng Chieh-Yuan
	Chief of Finance Division and Corporate Governance Officer	Tseng Yu-Chin

Note 1: Refers to the employee remuneration to managers passed by the Board of Directors in the most recent year.
(4) Separately compare and describe total remuneration, as a percentage of net income stated in the parent company only financial reports or individual financial reports, as paid by the Company and by each other company included in the consolidated financial statements during the most recent two years to directors, supervisors, president, and vice presidents. Additionally, analyze and describe remuneration policies, standards, and packages, the procedure for determining remuneration, and its connection to operating performance and future risk exposure.

Title	2025 (Year of Earnings Attribution)	2024 (Year of Earnings Attribution)
	Remuneration paid by the Company and all companies included in the consolidated financial statements to the Company’s directors, supervisors, president, and vice president as a percentage of profit after tax (%)	Remuneration paid by the Company and all companies included in the consolidated financial statements to the Company’s directors, supervisors, president, and vice president as a percentage of profit after tax (%)
Director	19.68	6.48
President and Vice President

Description:

A. The Company’s remuneration policy is based on the duties of the position in the Company and its contribution to the Company’s operational objectives. Reasonable remuneration is paid, taking into consideration not only the Company’s overall operational performance but also the achievement rates of personal and departmental performance, as well as individual contributions to the Company. All remuneration is subject to the review and approval of the Remuneration Committee.

B. In 2025, total remuneration as a percentage of net income after tax increased by 13.2% compared with 2024.

Corporate Governance

(1) Operation of the Board of Directors:

The Board of Directors convened 5 meetings [A] in the most recent year. The attendance of directors is summarized as follows:

Title	Name	Actual Attendance [B]	Attendance by Proxy	Actual Attendance Rate [B/A]
Chairman	Cheng Ke-Pin	5	0	100%
Director	Cheng Yu-Liang	5	0	100%
Director	Cheng Chieh-Yuan	5	0	100%
Director	Cheng I-Tien	5	0	100%
Director	Cheng Wen-Shuo	5	0	100%
Independent Director	Lee Yi-Lung	5	0	100%
Independent Director	Chen Mao-Tang	5	0	100%
Independent Director	Hsu Ching-Tao	5	0	100%
Independent Director	Wu Mei-Yuan	5	0	100%
Other matters to be recorded:
I. If the Board of Directors meets any of the following circumstances, the minutes concerned shall clearly state the meeting date, term, contents of proposals, opinions of all independent directors, and the Company’s resolution regarding said opinions:
(I) Matters referred to in Article 14-3 of the Securities and Exchange Act: Not applicable, as the Company has set up an Audit Committee.
(II) Other than those described above, any other resolution(s) passed where independent directors voiced opposing or qualified opinions on record or in writing: None.
II. Regarding the situation of directors’ conflict of interest recusal, the name of the director with a potential conflict of interest, subject matter, reason for the conflict of interest recusal, and their participation in deliberations shall be recorded: None.

III. Companies listed on the TWSE or the TPEx shall disclose the evaluation cycle and period, scope of evaluation, method, and contents of evaluation of the Board of Directors' self-performance evaluation (or peer evaluation):

Item	Description
Evaluation Frequency	Once a Year
Evaluation Period	2025/1/1–2025/12/31
Evaluation Scope	Board of Directors, Board Members, and Functional Committees
Evaluation Method	Internal self-assessment among Board members and members of each functional committee
Evaluation Content	Performance Evaluation of the Board	A. Participation in the Operation of the Company
B. Quality of the Board of Directors’ Decision Making
C. Composition and Structure of the Board of Directors
D. Election and Continuing Education of the Directors
E. Internal Control
	Evaluation of the Board Members	A. Understanding of the Goals and Mission of the Company
B. Awareness of the Duties of a Director
C. Participation in the Operation of the Company
D. Management of Internal Relationships and Communication
E. Director’s Professionalism and Continuing Education
F. Internal Control
	Performance evaluation of each functional committee (including the Audit Committee and the Remuneration Committee)	A. Participation in the Operation of the Company
B. Awareness of Functional Committees’ Responsibilities
C. Functional Committees’ Decision-making Quality
D. Composition of Functional Committees and Selection of Members
E. Internal Control
Evaluation Results	According to the results of performance evaluation of the Board, evaluation of the Board members, performance evaluation of each functional committee, there are no improvements to be made.

IV. The objectives of strengthening the competency of the Board of Directors for the present year and the most recent year (such as establishment of the Audit Committee and improvement of information transparency), and assessment of the implementation:

(I) The Company established the Audit Committee on June 12, 2018.

(II) In a bid to build a robust Board governance system and improve its supervisory function and strengthen the management function, the “Rules for Performance Evaluation of Board of Directors” were established on August 9, 2019.

(III) The 2025 performance evaluations of the Board of Directors, individual Board members, and each functional committee were completed at the end of 2025. The evaluation scores ranged from 4.96 to 5.00, and the evaluation results were submitted to the Board of Directors on March 12, 2026.

(2) Operation of the Audit Committee:

The Audit Committee convened 5 meetings [A] in the most recent year, with its attendance provided as follows:

Title	Name	Actual Attendance [B]	Attendance by Proxy	Actual Attendance Rate (%) [B/A]	Notes
Independent Director	Lee Yi-Lung	5	0	100%
Independent Director	Chen Mao-Tang	5	0	100%
Independent Director	Hsu Ching-Tao	5	0	100%
Independent Director	Wu Mei-Yuan	5	0	100%
Other matters to be recorded:
I. For Audit Committee meetings that meet any of the following descriptions, state the date and session of the Audit Committee meeting held, the discussed topics, the content of the objections, reservations, or material recommendations of independent directors, the Audit Committee’s resolution, and how the Company responded to Audit Committee’s opinions:
(I) Matters specified in Article 14-5 of the Securities and Exchange Act:
Board Meeting Date	Audit Committee Meeting Date	Proposal Content			The Audit Committee’s Resolution, and How the Company Responded to Audit Committee’s Opinions
March 13, 2025	March 13, 2025	1. Proposal for the appointment and remuneration of the CPAs for financial statement audits
2. Proposal for review of the 2024 business report and 2024 parent company only and consolidated financial statements
3. Proposal for 2024 earnings distribution
4. Proposal for the 2024 “Statement of Internal Control System”.
5. Investment proposal for the establishment of a manufacturing subsidiary in India			Approved as proposed with the consent of all committee members present.
May 8, 2025	May 8, 2025	1. Report on the consolidated financial statements for the first quarter of 2025
2. Proposal for discussion of credit facilities with financial institutions

| August 7, 2025 | August 7, 2025 | 1. Report of consolidated financial statements for the second quarter of 2025.
2. Proposal for discussion of credit facilities with financial institutions
3. Proposal for the Company to provide an endorsement/guarantee for Chien Ho Hsing Technology (Suzhou) Co., Ltd.
4. Proposal for the installation of a rooftop solar power generation system. |
| --- | --- | --- |
| November 6, 2025 | November 6, 2025 | 1. Report on the consolidated financial statements for the third quarter of 2025 |
| December 18, 2025 | December 18, 2025 | 1. Business objectives for 2026
2. Proposal for the 2026 audit plan
3. Proposal for the appointment of CPAs for transfer pricing report services
4. Proposal for discussion of credit facilities with financial institutions
5. Proposal for capital increase by the manufacturing subsidiary in India
6. Proposal for capital increase by the manufacturing subsidiary in Thailand |

(II) Other than those described above, any resolutions not approved by the Audit Committee but approved by more than two-thirds of all directors: None.

II. Regarding the situation of independent directors' conflict of interest recusal, the name of the independent director with potential conflict of interest, subject matter, reason for conflict of interest recusal, and participation in voting shall be recorded: None.

III. Communications between the independent directors and the Company's chief internal auditor and CPAs (including the material issues, methods, and results of audits of the Company's finance or operations):

(III) The Company holds an Audit Committee meeting on a regular basis and invites the accountants, chief auditor, and relevant supervisors to attend as necessary.

(IV) According to the annual audit plan, the chief internal auditor periodically submits a summarized Audit Report to the Audit Committee. The Audit Committee also conducts audits on the Company's internal control system, internal auditors, and their work.

(V) The Audit Committee regularly meets with the Company's certified public accountants to discuss quarterly financial statement reviews or audit results and other required communication matters. The most recent communication between the Audit Committee and the certified public accountants took place on March 12, 2026. Discussion items included audit procedures, results, and analyses, as well as reports on audit quality indicators and non-assurance services. The independent directors had no comments regarding this meeting. The Audit Committee also conducts independent reviews on the appointment of CPAs and the audit and non-audit services they provide.

(3) Status of Corporate Governance, Deviations From the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and Reasons for Such Deviations

Scope of Evaluation	Operational status			Deviations From the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
I.	Has the Company established and disclosed the corporate governance practice principles according to the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”?	V		The Company has established its Corporate Governance Best-Practice Principles. The Company’s corporate governance practices have been able to meet the spirit of the Principles.	None
II.	(I) Has the Company established a set of internal procedures to handle shareholders’ suggestions, queries, disputes, and litigations and implemented them accordingly?	V		To ensure shareholder rights, the Company has appointed a spokesperson, and the Finance Division has dedicated personnel for shareholder services who handle shareholder suggestions, questions, disputes, and litigation in accordance with internal operating procedures.	None
III.	(II) Does the Company possess a list of the major shareholders and a list of the ultimate controllers of the major shareholders?	V		The Company has set up dedicated stock personnel and the Stock Agent Department to handle the list of the shareholders that actually control the Company at all times and pay attention to the changes in their shareholding.	None
	(III) Has the Company established and implemented risk management and firewalls for companies it is affiliated with?	V		Through the “Related-Party Transaction Procedures”, we have built appropriate risk control and firewall mechanisms. The financial and accounting operations of affiliates are independently run and overseen by dedicated personnel, with an internal audit and control system set up according to the law and regulations.	None

Scope of Evaluation	Operational status
			Yes	No	Summary
	(IV)	Has the Company established internal rules against Company insiders trading with undisclosed information?	V	Through the “Management of Prevention of Insider Trading”, the Company prohibits the Company's insiders from trading marketable securities using undisclosed information in the market.	None
III. Composition and Responsibilities of the Board of Directors	(I)	Has the Board formulated a diversity policy and specific management objectives, and have they been implemented?	V	The Company has established the “Corporate Governance Best-Practice Principles” and has explained in it the structure of the Board of Directors, proactively implementing the diversity of the composition of the Board members.	None
	(II)	Is the Company, in addition to establishing the Remuneration Committee and Audit Committee in accordance with the law, willing to voluntarily establish any other functional committees?	V	In addition to establishing the Remuneration Committee and the Audit Committee, the Company established the Sustainability Committee as approved by the Board of Directors on December 18, 2025. In the future, the Company will establish other functional committees as needed based on the scale of its business development and practical operational needs.	None
	(III)	Has the Company established a standard to measure the performance of the Board and implemented it annually? Has the Company submitted results of the performance evaluation to the Board of Directors as a reference in determining the remuneration of individual directors and nomination for re-election?	V	1. The Company passed the Rules for Performance Evaluation of Board of Directors on August 9, 2019. 2. The 2025 Board of Directors performance evaluation was completed at the end of 2025 and reported to the Board of Directors on March 12, 2026.	None

Scope of Evaluation	Operational status			Deviations From the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
	(IV) Does the Company assess the CPAs for their independence on a regular basis?	V		The Company's Finance Division annually evaluates the independence and competence of certified public accountants, reporting these assessments to the Audit Committee and the Board of Directors. The most recent report was presented to the Board of Directors on March 12, 2026. The Company internally evaluates aspects including financial interests, financing, business relationships, family and personal relationships, and employment relationships. The Company also obtains statements from certified public accountants affirming they have not been penalized for violations and maintain independence. The evaluation references Audit Quality Indicators (AQIs) and assesses five dimensions: professionalism, quality control, independence, supervision, and innovation capacity. The Company is not aware of any circumstances that may affect the independence of the CPAs.	None

Scope of Evaluation	Operational status			Deviations From the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
	Yes	No	Summary
IV. Does the Company have an appropriate number of qualified governance personnel and designate one chief corporate governance officer to oversee corporate governance affairs (including but not limited to providing the directors with information needed to perform their duties, assisting the directors with legal compliance, handling matters related to Board meetings and shareholders’ meetings according to laws, and preparing minutes of Board and shareholders’ meetings, etc.)?	V		The Company has designated the Finance Division as the part-time corporate governance unit, with the Chief of Finance Division serving concurrently as the corporate governance officer responsible for corporate governance-related matters. These matters include: Matters in connection with Board meetings and shareholders’ meetings in accordance with the law, company registration and change registration, preparation of minutes of Board meetings and shareholders’ meetings, and provision of information for directors to carry out their duties.	None
V. Does the Company build communication channels with stakeholders (including but not limited to shareholders, employees, customers, and suppliers), establish a stakeholder section on the Company’s website, and duly respond to the stakeholders’ concerns on issues related to corporate social responsibilities?	V		The Company has set up dedicated units for communication with customers, suppliers, employees, financial institutions, the government, and shareholders. It has also established a “Stakeholder Communication Channels and Frequency” section on its website to appropriately respond to important CSR issues.	None
VI. Has the Company delegated a professional stock agency to handle affairs regarding the shareholders’ meetings?	V		We have appointed the Stock Agency Department of KGI Securities to handle shareholder matters.	None

Scope of Evaluation	Operational status			Deviations From the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
VII. Public Disclosure of Information	(I) Has the Company set up a website to disclose financial business and corporate governance information?	V		We announce our latest finances and corporate governance information on https://www.ksterminals.com.tw	None
	(II) Has the Company adopted other means to disclose information (e.g. an English website, assigning specific personnel to collect and disclose corporate information, implementing a spokesperson system, broadcasting investor conferences via the Company's website)?	V		We have established a website in both Chinese and English and set up a spokesperson and deputy spokesperson as a window for releasing information to the outside world. We also disclose the latest information including company finances on the Company website, striving for information transparency.	None
	(III) Does the Company announce and report the annual financial reports within two months after the end of each fiscal year, and the financial reports for Q1, Q2, and Q3 and the monthly operation overview before the prescribed time limit?	V		The Company publishes its Q1, Q2, and Q3 financial reports and the monthly operation overview within the deadline in accordance with the regulations.	None
VIII. Does the Company have other information that enables a better understanding of the Company's corporate governance practices (including but not limited to employee rights, employee care, investor relations, supplier relations, stakeholders' rights, continuing		V		(I) Employee Rights and Benefits: We have established a Worker Welfare Committee, and electronic and physical complaint mailboxes. Furthermore, we protect the rights and benefits of employees in accordance with the requirements prescribed in the Labor Standards Act.(II) Employee care: The Company plans employee group	None
				and employees' rights. We have established a workman's rights and the workman's rights for employees in accordance with the requirements prescribed in the Labor Standards Act. (III) Employee care: The Company plans employee group
9. How do the Company's corporate governance practices (including but not limited to employee rights, employee care, investor relations, and stakeholders' rights) influence the Company's corporate governance practices?		V		(I) Employee Rights and Benefits: We have established a Workman's Rights and Benefits Committee, and electronic and physical complaint mailboxes. Furthermore, we protect the rights and benefits of workman's rights and the workman's rights for workmen's rights. We have established a workman's rights and the workman's rights for workmen's rights. (II) Employee care: The Company plans employee group	None

Scope of Evaluation	Operational status			Deviations From the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
	Yes	No	Summary
education of directors, implementation of risk management policies and risk measurements, implementation of customer policy, and purchasing liability insurance for directors by the Company)?			insurance, regular health examinations, employee physical and mental health counseling services, suitable work plans for middle-aged and elderly employees, and various employee education and training programs, and provides annual family travel subsidies for employees.

(III) Investor Relations and Stakeholder Rights: We regularly announce company information in an honest manner in accordance with laws and regulations. By doing so, we are able to ensure the rights and interests of investors and stakeholders.

(IV) Supplier Relations: We keep a robust relationship with our suppliers and deal with each other with honesty and trust.

(V) Further Education of Directors: All directors of the Company are equipped with a professional background and business management experience in the industry. Moreover, the directors also take corporate governance-related courses.

(VI) Implementation of Risk Management Policy and Risk Measurement Criteria: The Company’s internal control system and necessary management regulations, approved by resolutions adopted at Board meetings and shareholders’ meetings, are thoroughly implemented.

(VII) Implementation of Customer Policy: At K.S. Terminals, we strictly abide by the contracts entered into with customers and applicable regulations. In doing so, we protect the rights and interests of customers, providing customized and robust | |

Scope of Evaluation	Operational status			Deviations From the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
				services. (VIII) Liability Insurance Coverage of Directors: As prescribed in the Articles of Incorporation, all directors of the Company are covered with liability insurance. To establish a sound corporate governance mechanism, the insurance policy is subject to an annual regular review to reduce the risks borne by the directors and Company.
IX. Please specify the status of the improvements made, based on the corporate governance assessment report released by the Corporate Governance Center of the TWSE in the most recent year, and the priority corrective actions and measures for any issues that are yet to be rectified. Items not scored in the 12th Corporate Governance Evaluation (evaluation year 2025):
Title No.	Contents of Indicator			Items Requiring Improvement
4.9	Does the Company disclose various employee welfare measures, retirement systems, and their implementation status on its website and in its annual report?			The Company has added and revised disclosures on employee welfare measures, the retirement system, and their implementation status in its annual report and on its website.
4.34	Does the Company establish a Board-level Sustainability Committee with no fewer than three members, whose members possess professional knowledge and capabilities in corporate sustainability, with at least one director participating in supervision, and disclose its composition, duties, and operations?			The Company established the Sustainability Committee on December 18, 2025. Based on the principle of materiality, the Committee conducts risk assessments and formulates strategies for environmental, social, and corporate governance issues, while the Board of Directors is responsible for supervising the overall progress of sustainability development.

(4) The State of the Remuneration Committee

A. The Company’s Remuneration Committee has four members.
B. Information on Remuneration Committee Members

| Identity
(Note 1) | Qualifications
Name | Professional Qualification
and Experience | State of Independence | Number of
Positions as a
Remuneration
Committee
Member in
Other Public
Listed
Companies |
| --- | --- | --- | --- | --- |
| Independent
Director
(Convener) | Lee Yi-Lung | With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act.
Experience: Chairman of TERA AUTOTECH CORPORATION, Adjunct Professor of the Department of Electrical Engineering, Changhua Normal University | ☺ Independent Director of the Company, meeting the independence criteria.
☺ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship.
☺ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years. | None |

Identity (Note 1)	Qualifications Name	Professional Qualification and Experience	State of Independence	Number of Positions as a Remuneration Committee Member in Other Public Listed Companies
Independent Director	Chen Mao-Tang	With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act. Major experience: Responsible person of Bailin Enterprise Consulting Co., Ltd.; Remuneration Committee Member of K.S. TERMINALS INC.; General Manager of Heng Tai Consumables Group Ltd.; Engineer and Production Capacity Manager of Berlin Company, Germany	◎ Independent Director of the Company, meeting the independence criteria. ◎ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship. ◎ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years.	1

| Identity (Note 1) | Qualifications
Name | Professional Qualification and Experience | State of Independence | Number of Positions as a Remuneration Committee Member in Other Public Listed Companies |
| --- | --- | --- | --- | --- |
| Independent Director | Hsu Ching-Tao | With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act.
Experience: President Securities Corp., Senior Manager, Supervisor of K.S. TERMINALS INC. | ☺ Independent Director of the Company, meeting the independence criteria.
☺ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship.
☺ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years. | None |

Identity (Note 1)	Qualifications Name	Professional Qualification and Experience	State of Independence	Number of Positions as a Remuneration Committee Member in Other Public Listed Companies
Independent Director	Wu Mei-Yuan	With the commercial, legal, financial, or accounting work experience required to perform the assigned duties, and does not meet any of the circumstances stipulated in Article 30 of the Company Act. Experience: Capital Markets Associate Director of KGI Securities Co., Ltd.	○ Independent Director of the Company, meeting the independence criteria. ○ The independent director, his/her spouse, and relatives within the second degree of kinship do not serve as a director, supervisor, or employee of the Company or its affiliates; do not hold any shares in the Company; and do not serve as a director, supervisor, or employee of a company with which the Company has a specific relationship. ○ Remuneration received for business, legal, financial, or accounting services provided by the Company or its affiliates in the most recent two years.	2

Note 1: Please specify director, independent director, or other.

C. Information Concerning the Operation of the Remuneration Committee

Current committee term: June 6, 2024 to June 5, 2027. The Remuneration Committee met 2 times in the most recent year (A). The qualifications and attendance of committee members are as follows:

Title	Name	Actual Attendance (B)	Attendance by Proxy	Actual Attendance Rate (%) (B/A)
Convener	Lee Yi-Lung	2	0	100%
Committee Member	Chen Mao-Tang	2	0	100%
Committee Member	Hsu Ching-Tao	2	0	100%
Committee Member	Wu Mei-Yuan	2	0	100%
Other matters to be recorded:
I. If the Board of Directors does not adopt or decide to revise the recommendation of the Remuneration Committee, the Board shall record the date and term, subject matter, resolution, and measures taken concerning the recommendation of the Remuneration Committee (for example, if the remuneration approved by the Board of Directors is higher than the recommendation proposed by the Remuneration Committee, the Board shall explain the differences and reasons): None.
II. In the resolutions of the Remuneration Committee, if any member expresses objections or has reservations, then the Remuneration Committee shall record the date, term, subject matter, opinions of its members, and the measures taken: None.
III. Important Resolutions Adopted by the Remuneration Committee in 2025:
Meeting Date		Proposal Content		Resolution
March 13, 2025		1. Proposal for total remuneration of managers for 2024
2. Proposal for distribution of 2024 directors’ remuneration and managers’ remuneration
3. Proposal for proposed adjustments to managers’ remuneration items in 2025		Approved as proposed with the consent of all committee members present.
December 18, 2025		1. Proposal for the 2025 managers’ year-end bonus distribution plan
2. Proposal for the 2026 Remuneration Committee meeting schedule
3. Proposal for the establishment of the performance bonus distribution regulations		Approved as proposed with the consent of all committee members present.

(5) Discrepancies Between the Promotion of Sustainable Development and the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons

Promotion Item	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
	Yes	No	Summary
I. Has the Company established a governance framework for the promotion of sustainable development and an exclusively (or concurrently) dedicated unit to promote sustainable development, and has the Board of Directors authorized the senior management to handle matters, and does the Board of Directors supervise the implementation?	V		The Company has established a sustainability governance framework and set up the Sustainability Management Committee as the dedicated unit. The Board of Directors authorizes senior management to promote relevant policies and implementation plans, and regularly supervises and reviews the implementation status through the Sustainability Management Committee. The relevant information is publicly disclosed in the Corporate Governance section of the Company's official website and in the annual sustainability report.	None
II. Does the Company conduct risk assessment on environmental, social, and corporate governance issues related to the Company's operations and adopt related risk management policies or strategies pursuant to the materiality principle?	V		1. The Company has established “Sustainable Development Practice Principles” and issues a “Sustainability Report” following the Global Reporting Initiative (GRI) Sustainability Reporting Standards, with a dedicated chapter explaining risk management. 2. The Company’s sustainability report is available at https://www.ksterminals.com.tw for download. 3. We have formulated the control and management methods targeting the control of the Company’s operational risks. These include the “Management Method for Strategies and Risks”, “Procedures for Ethical Management and Guidelines for Conduct”, “Identification of Environmental and Harmful Substances and Risk Evaluation and Risk Control Planning Method”, “Implementation Rules for Internal Audits”, and “Management Method for the Supervision of Subsidiaries”.	None

Promotion Item	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
	(I) Has the Company established environmental policies suitable for the Company’s industrial characteristics?	V		The Company complies with government environmental laws, regulations, and policies, and has established relevant operating regulations, including the “Identification Method for Environmental Considerations”, “Management Method for the Environment, Safety, and Health Supervision and Measurement”, “Waste Management Method”, and “Management Method for Regulatory Identification of the Environment, Safety, and Health.” The Company has obtained certification for the ISO 14001 Environmental Management System (valid from January 2, 2023 to December 22, 2028) and the IECQ QC 80000 Hazardous Substance Process Management System (valid from January 19, 2025 to January 18, 2028).	None
III. Environmental Issues	(II) Does the Company endeavor to upgrade the energy use efficiency and use environmentally-friendly materials?	V		The Company has been certified by the ISO14001 Environmental Management system and IECQ QC80000 Hazardous Substance Process Management system. Furthermore, we are committed to improving the utilization rate of various resources and continuing to reduce the impact on the environment through the following measures:
1. Improve the energy efficiency of machinery and equipment, air-conditioning systems, and lighting fixtures;
2. Simplify the design of products to reduce the usage of the packing materials for shipments;
3. Recycle and reuse water resources, such as wastewater from RO reverse osmosis systems;
4. Engage qualified professional vendors to recycle, refine, and reuse copper sludge.	None

Promotion Item	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
	(III) Has the Company evaluated the potential risks and opportunities arising from climate change now and in the future and taken relevant countermeasures?	V		Due to the fact that global climate change has produced significant changes with its impact gradually expanding, it has posed potential risks to the Company’s operations. To mitigate the damage, we have established the “Emergency Response Management Method”, “Production Line Emergency Response Plan”, and “Post-Disaster Recovery Plan” to strengthen the response and recovery capabilities in the face of natural disasters. In doing so, we are able to minimize the impact of natural disasters on the Company’s operations. At the same time, we will continue to make proactive approaches to save energy, reduce carbon, and save water, fulfilling our responsibility as a responsible corporate citizen.	None

Promotion Item	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
	(IV) Has the Company gathered statistics on the greenhouse gas emissions, water usage, and total waste weight over the past two years, and has the Company established policies for carbon reduction, greenhouse gas emission reduction, reduction of water usage, or other waste management?	V		1. Each year, the Company conducts internal greenhouse gas (GHG) inventories to continue to monitor and calculate the data including GHG emission intensity, volatile organic compound emissions, water usage, wastewater discharge, and business waste removal and disposal volume. The data is used as the indicator for improvement of the environmental management policy. In daily operations, the Company strengthens water conservation measures and water recycling facilities, controls air-conditioning temperatures during the summer, and gradually replaces existing equipment with high-efficiency air-conditioning systems and LED lighting tubes to achieve its energy conservation and carbon reduction goals.
2. The information on GHG emissions, water usage, and total waste volume, alongside the management policy, has been disclosed in the sustainability report, available for download at https://www.ksterminals.com.tw.	None

IV. Social Issues	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
(I) Has the Company developed its policies and procedures in accordance with laws and the International Bill of Human Rights?		V		The Company complies with the laws and regulations of the countries where it operates, as well as international laws and regulations. The Company also voluntarily follows internationally recognized human rights standards, including the United Nations Universal Declaration of Human Rights, the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights, and the standards of the International Labour Organization (ILO). In addition, the Company has established internal systems, including the Company Work Rules, Child Labor Remediation Measures, and Sexual Harassment Incident Handling Procedures, to clearly demonstrate its commitment to protecting employees’ human rights. These systems cover matters such as basic regulatory compliance, freedom of employment, humane treatment, and the prohibition of improper discrimination and sexual harassment. The General Management Division is responsible for overall planning and implementation to ensure that the human rights policy is embedded in daily operations.	None

Promotion Item	Implementation Status
	Yes	No	Summary
(II) Does the Company establish and implement proper employee benefit plans (including the salary, holidays, and other welfare) and reflect the corporate business performance or achievements in employee remuneration?	V		Employee welfare, care, and training:
The Company provides employees with labor insurance and national health insurance in accordance with the law, and also provides additional group medical insurance, life insurance, and accident insurance. The Company has established an Employee Welfare Committee to promote welfare and club activities, and prepares an annual budget for professional and management training. The remuneration and leave systems are established in accordance with the “Remuneration Handbook” and “Work Rules,” and are regularly submitted to the Board of Directors and the Remuneration Committee for review and amendment. Various subsidies and benefits are handled in accordance with the “Rules for Use of Benefits and Subsidies” and “Regulations for Weddings and Funerals.”
Welfare measures: Employee trips, employee gatherings, travel subsidies, holiday and birthday cash gifts, wedding, funeral, and childbirth subsidies, childcare allowances, club subsidies, and other benefits.
Company facilities: Dormitories, cafeteria, lactation room, infirmary, parking lot, and sports facilities.
Insurance system: In addition to labor insurance and national health insurance, the Company provides group life insurance, medical insurance, and accident insurance.
Health management: Regular health examinations and follow-up care for abnormal results.	None

Promotion Item	Implementation Status
	Yes	No	Summary
			Remuneration and incentive system: The Company appropriates bonuses based on financial performance, including earnings per share and net income from core business operations, and distributes year-end bonuses. In addition, in accordance with the Articles of Incorporation, when the Company records a profit, it appropriates no less than 3% as employee remuneration, which is distributed each September, to encourage employees to share in the Company’s operating results.
Retirement System and its Implementation:
Since the implementation of the new labor pension system in July 2005, the Company has contributed 6% of each employee’s monthly salary to the employee’s individual pension account with the Bureau of Labor Insurance in accordance with the law. Employees may also voluntarily contribute between 0% and 6%. In 2025, 118 employees made voluntary contributions, accounting for 16.37% of employees under the new system. The defined contribution amount for the year was NTD 21,970 thousand. For employees assigned to affiliates, years of service may be combined to protect employee rights and promote talent mobility within the Group.

Promotion Item	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
	Yes	No	Summary
(III) Does the Company provide a safe and healthy work environment for its employees? Does the Company regularly provide its employees with health and safety education?	V		The Company maintains a medical office, regularly arranges employee health examinations, and implements workplace environment monitoring in accordance with regulations to identify potential workplace hazards. The Company also has an emergency response team that conducts regular drills annually, and employees must participate in occupational safety and health courses or obtain relevant qualified operating licenses according to their job functions. Fire drills are held regularly each year to develop employees’ emergency response and self-safety management capabilities.

The Changbin Xianxi Plant obtained ISO45001 Occupational Health and Safety Management System certification in 2023 (valid from July 4, 2023 to July 4, 2026). Through various systematic occupational safety and health management functions, the Company continuously improves the working environment of production operations and eliminates risks to prevent occupational accidents.

In 2025, the number of fire incidents at all plants and office locations was zero; the number of casualties was zero, representing 0% of the total number of employees.

Each plant (location) of the Company regularly conducts “Fire Safety Equipment Inspection and Reporting” before the end of November each year. If any deficiencies are found during inspection, improvements are made immediately, and reports are submitted to fire authorities after completion of improvements. | None |

Promotion Item		Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
IV. Social Issues	(IV) Has the Company established effective career development training plans for employees?	Yes	No	Summary
	(IV) Has the Company established effective career development training plans for employees?	V		The Company has established comprehensive career competency development and training plans. Annual training is planned based on three dimensions: strategic objectives, performance gaps, and competency gaps. The Company also consolidates the needs of all departments, with the supervisors of each unit proposing training courses for the following year by the end of November each year. The training covers new employee orientation, professional competency training, statutory training, and certification training, helping employees continuously improve their work skills and cross-disciplinary professional capabilities, while supporting employee career development and strengthening the Company’s overall competitiveness.	None

Promotion Item	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
		Yes	No		Summary
	(V) Does the Company comply with laws and international standards with regards to the customer health and safety of products and services, customer privacy, marketing and labeling of products and services, and has the Company established policies and reporting procedures related to consumer or customer rights and benefit protection?	V		The Company complies with relevant laws, regulations, and international standards. Its products meet environmental regulations and green product requirements, and the Company has obtained safety certifications, such as RoHS and REACH, to ensure customer health and safety. For marketing and labeling, the Company ensures that information is transparent and accurate in accordance with the Commodity Labeling Act and international standards. To protect customer privacy, all employees sign the Business Confidentiality and Copyright Agreement, and departing employees also sign the Employee Departure Memorandum, ensuring strict control over customer information. The Company has also established a Stakeholder Section as a complaint channel to ensure that customer opinions can be responded to and remedied in a timely manner. Through management systems such as ISO 9000, IATF 16949, and ISO 14001, as well as regular audits and customer satisfaction surveys, the Company continues to optimize its products and services and safeguard consumer rights and interests.	None

Promotion Item	Implementation Status			Deviations From the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons
	Yes	No	Summary
(VI) Does the Company establish supplier management policies and require them to follow relevant regulations on the issues of environmental protection, occupational health and safety, or labor rights? What is the status of implementation?	V		The Company’s Procurement Management Regulations and Contractors EHS Management Regulations expressly require suppliers and contractors to comply with relevant requirements on environmental protection, occupational safety and health, labor rights, and human rights. The Company also requires suppliers to sign the “Supplier Social Responsibility Commitment Letter” and complete the “Supplier Social Responsibility and Compliance Self-assessment Form” for evaluation. The assessment covers matters such as human rights requirements under the Labor Standards Act, occupational safety and risk management, prohibition of child labor, and prohibition of forced labor. The Company has gradually issued these documents to key suppliers and collected the completed forms. As of the end of March 2026, 19 completed forms had been collected. If a supplier has a low self-assessment score or deficiencies in occupational safety management, the Company will require improvement within a specified period and conduct on-site evaluations. Suppliers that fail the follow-up review or refuse to cooperate will be subject to reduced procurement volumes or termination of cooperation.	None
V. Has the Company stipulated standards or guidelines for the preparation of reports according to internationally accepted reports, and does it prepare sustainability reports and other reports to disclose non-financial information of the Company? Have the aforementioned	V		The Company’s sustainability report is prepared in accordance with the 2021 version of the GRI Standards issued by the Global Reporting Initiative (GRI). The Company also refers to and maps the report against the Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, the Task Force on Climate-related Financial Disclosures (TCFD) framework, the SASB	None

Promotion Item	Implementation Status
	Yes	No	Summary
reports obtained the assurance or guarantee opinions from a third verification unit?			Sustainability Accounting Standards, and the United Nations Sustainable Development Goals (SDGs), in order to enhance the completeness and transparency of its disclosures. Although the report has not been externally assured by a third party, its contents and data were collected and provided by the respective responsible units, compiled and prepared by the General Management Office, reviewed multiple times by each department, and submitted to the Board of Directors. The financial data disclosed in the operating overview are sourced from the CPA-audited financial reports to ensure the accuracy and credibility of the information.
VI. If the Company has formulated its own Sustainable Development Best-Practice Principles in accordance with the “Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies”, please describe the differences between its operation and the Principles: None.
VII. Other important information that facilitates the understanding of the promotion of sustainable development:
(I) Care for disadvantaged groups:
(1) Cooperates with Fengtian Temple in Huatan Township of Changhua County, and donates supplies to low-income households during festivals and holidays.
(2) Makes regular donations to charitable foundations and organizations, including the Eden Social Welfare Foundation, the Tzu-Yin Social Welfare Charitable Foundation, Huei-Kong and the Down Syndrome Foundation, as well as the Changhua Volunteer Firefighters Corps.
(II) Conducts industry-academia cooperation and recruitment activities with relevant departments of colleges and universities in central Taiwan.
(III) Participates in sports-related public welfare by supporting the development of promising young female golf and rhythmic gymnastics athletes.
(IV) Sponsors streetlights in Xianxi Township, Changhua County.

(6) Listed Company Climate-related Information

A. Implementation Status of Climate-related Information

Item	Implementation Status
1. Describe the Board of Directors’ and management’s oversight and governance of climate-related risks and opportunities.
2. Describe how identified climate risks and opportunities impact the Company’s business, strategy, and finances (short-term, medium-term, long-term).
3. Describe the financial impact of extreme climate events and transition actions.
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.
5. If scenario analysis is used to assess resilience to climate change risks, explain the scenarios, parameters, assumptions, analysis factors, and main financial impacts used.
6. If there is a transition plan to respond to and manage climate-related risks, describe the content of the plan and the indicators and targets used to identify and manage physical risks and transition risks.
7. If internal carbon pricing is used as a planning tool, explain the basis for price setting.
8. If climate-related targets have been set, describe the activities covered, greenhouse gas emission scopes, planning timeline, annual progress information, etc.; if carbon offsets or Renewable Energy Certificates (RECs) are used to achieve related targets, explain the source and quantity of carbon reduction credits offset or the quantity of Renewable Energy Certificates (RECs).
9. Greenhouse gas inventory and verification status, along with reduction targets, strategies, and specific action plans (to be filled in 1-1 and 1-2).	Items 1-6, 8: Please refer to the explanation below.
7. Internal carbon pricing has not yet been used as a planning tool.
9. Please refer to 1-1 and 1-2.

Aspect	TCFD Recommended Disclosure Item	Response Measures
Governance	Board oversight of climate-related risks and opportunities	The Board of Directors is the highest oversight body for climate governance, with the Chairman serving as chair and coordinating the Company's overall climate strategy.The Board of Directors convenes meetings regularly each year to oversee management's implementation of climate change-related risk and impact assessments, as well as the achievement of key performance indicators. When reviewing major investment plans, capital expenditures, and operating strategies, the Board of Directors incorporates climate-related risks and opportunities into its decision-making considerations to strengthen the Company's medium- and long-term operating resilience and sustainable operating capabilities.
	Management's role in assessing and managing climate-related risks and opportunities	The Company's Sustainability Committee coordinates climate-related issues and convenes a Risk Management Team composed of representatives from business divisions, manufacturing plants, finance, materials management, and other units.The General Manager serves as the convener.Through the overall ESG assessment mechanism, the Risk Management Team identifies climate change-related risks and opportunities, formulates response strategies, and reports to the Board of Directors through the Sustainability Committee at least once each year.
Strategy	Identified short-, medium-, and long-term climate-related risks and opportunities	Short-term
Transition risks:
In response to environmental trends, customers require the use of eco-friendly packaging materials, as well as energy conservation and carbon reduction.
Physical risks:
Extreme weather and droughts may cause transportation disruptions or water rationing measures, affecting production operations and increasing operating costs.
Market opportunities:
Developing or expanding R&D and innovation for low-carbon products, and supportive policy incentives.	Medium-term
Transition risks:
Global carbon fees and carbon taxation.
Physical risks:
Rising average temperatures may lead to a sharp increase in electricity costs.
Market opportunities:
By establishing cross-regional production bases, the Company can diversify supply chain risks, reduce transportation distances and related costs, and reduce greenhouse gas emissions during transportation. This will further support the development of products with low-carbon characteristics and enhance product market competitiveness.	Transition risks:
Increasingly stringent environmental regulations may increase compliance costs.
Physical risks:
Continued sea level rise may affect the normal operations of operating sites.
Market opportunities:
Business opportunities for green energy products arising from the net-zero carbon emissions trend.

Aspect	TCFD Recommended Disclosure Item	Response Measures
	Impact of climate-related risks and opportunities on business, strategy, and financial planning	1. Financial impact of high temperatures (long term): Under a scenario of approximately 2°C warming, higher summer temperatures and more frequent heat waves may increase air-conditioning electricity consumption by approximately 10% to 15%. As electricity consumption by air-conditioning equipment accounts for approximately 30% of total electricity consumption, annual electricity expenses are estimated to increase by approximately NTD 1 million to NTD 2 million.
2. Water resource impact (short-term): The number of consecutive rain-free days is expected to increase by 11% to 17%, which may result in risks of water shortages in production processes and production cuts.
3. Market opportunities: The core technologies of electric energy connectors can connect with green energy and electric vehicle markets, increasing revenue.
		Main response measures for transition risks	Main response measures for physical risks	Main response measures for climate opportunities
		To address risks arising from changes in compliance requirements and green standards, in addition to actively responding to relevant international standards, the Company implements the following internal improvements:
1. Evaluate and select renewable energy.
2. Replace equipment with low energy efficiency.
3. Conduct greenhouse gas inventories and identify carbon emission hotspots for reduction.
4. Manage high-energy-consuming equipment and provide procurement recommendations to monitor energy use in real time.	To reduce the risks of environmental impacts, relevant plants have gradually invested in related facilities and established production line emergency response plans to reduce operating losses caused by disaster risks:
1. Establish emergency response teams and conduct regular drills to reduce disaster losses.
2. Establish cross-regional production bases and flexible alternative supply chains to diversify risks.
3. Energy resilience: Gradually replace air-conditioning systems, which account for 30% of electricity consumption, to achieve the target of saving 80,000 kWh of electricity per year and offset the impact of rising temperatures.
4. Water resource adaptation: Plan to increase water storage capacity at plants to reduce drought-related threats.	The Company has built a strong foundation through its long-term commitment to sustainability and has maintained close, trusted relationships with customers over the years. By actively leveraging its core technologies in electric energy connectors and investing in R&D based on market demand, the Company will have opportunities in the low-carbon market to extensively develop green energy connectors. These products can be widely supplied to renewable energy, electric vehicle, and other industries and solutions, helping the Company become a preferred choice among customers and increase revenue from green energy products.

Aspect	TCFD Recommended Disclosure Item	Response Measures
Risk Management	Process for identifying and assessing climate-related risks	Initiation and data collection:
1. Annual initiation mechanism: Each year, the Sustainability Committee authorizes the Risk Management Team to lead the identification process to ensure that the latest climate science research and changes in Taiwan government policy trends are reflected.
2. Integration of internal and external data sources, including but not limited to:
• Plant operation-related data (e.g., electricity consumption, fuel use, process carbon emissions).
• Climate change scenario models.
• Trends in international and domestic climate policies (such as carbon fee systems, CBAM, and net-zero emissions, etc.).

Determination of identification scope:
1. Physical risks: Such as extreme weather events (including typhoons, floods, and droughts) and long-term climate changes (including rising temperatures and changes in rainfall patterns) with analysis of their impact on manufacturing operations, supply chains, transportation and logistics, and personnel safety.
2. Transition risks: Assessment of the potential impact of regulations (such as carbon fees), changes in market demand, upgraded customer requirements, and supply chain decarbonization pressure on operating models, cost structures, and product portfolios.
3. Climate opportunities: Focus on low-carbon process transformation, improved energy use efficiency, introduction of renewable energy, and potential development of low-carbon products.

Climate risk and opportunity identification meeting:
1. Establish a preliminary list of climate risks and opportunities, and introduce climate risk/opportunity assessment tools for evaluation.
2. Relevant departments, based on their division of responsibilities, use both qualitative and quantitative methods to provide preliminary assessment recommendations on potential climate risks/opportunities.
3. Qualitative assessment: Use scenario simulations and departmental professional judgment to discuss potential risks from strong typhoons to production line disruption, employee attendance, and facility safety.
4. Quantitative assessment: Analyze the increase in product energy consumption and costs caused by climate risks, or simulate changes in process costs under carbon fee policies.

Convene confirmation meeting and submit for approval by supervisors:
1. Convene review and confirmation meetings, or use written procedures, with representatives of the “Risk Management Team” confirming the climate risk/opportunity identification results for the year.
2. Update identification data/information, if any, as reference for the next year’s identification process. |
| | Process for managing climate-related risks | After the Sustainability Committee convenes relevant units to identify major risks in accordance with the strategy and risk management regulations and discuss relevant response measures, the chair of the Sustainability Committee regularly reports to the Board of Directors based on the risk management and evaluation results. |

Aspect	TCFD Recommended Disclosure Item	Response Measures
	How the processes for identifying, assessing, and managing climate-related risks are integrated into the Company's overall risk management system	1. Climate change is included as a material issue in corporate sustainability development and as a key major risk item. Risk management plans are implemented at all plants, and response measures are planned for operations, products, supply chain management, and other aspects. 2. The Board of Directors and members of the Sustainability Committee regularly review climate risk reports. 3. Ensure that climate risks are considered in investments, product R&D, and operating strategies. 4. Establish a carbon emissions data tracking system to ensure that risk response measures remain up to date.
Metrics and Targets	Describe the metrics used by the Company to assess climate-related risks and opportunities in accordance with its strategy and risk management processes	For climate change mitigation, the Company uses greenhouse gas emissions from each plant as the main quantitative key assessment indicator, while also setting indicators such as the renewable energy usage ratio, electricity consumption per unit of revenue, and water consumption per unit of revenue.
	Scope 1, Scope 2, and Scope 3 greenhouse gas emissions and related risks	Since 2022, the Company has continued to conduct Scope 1 and Scope 2 greenhouse gas inventories. Starting in 2025, the inventory scope will be expanded to all plants in Taiwan, namely the parent company, and third-party verification is planned for 2027. 2025 greenhouse gas emissions of the parent company are as follows:
		Scope	Emissions (tons CO2e)
		Scope 1	485.8398
		Scope 2	6,169.6529
		Total Emissions	6,655.4927
	Targets used to manage climate-related risks and opportunities, and performance in achieving such targets	The Company is committed to improving energy and resource use efficiency for itself and its customers. It also promotes management measures for energy conservation and carbon reduction, waste reuse, and water resource recycling, comprehensively reducing the environmental impact of its operations and products.
		Carbon emission and energy management targets	Waste management target	Water resource management target
		Annual electricity savings ≥ 80,000 kWh Annual carbon reduction ≥ 38 tons CO2e	Waste reuse rate ≥ 70%	Annual recycled and reused water volume ≥ 500 tons

> Greenhouse gas inventory and assurance status, reduction targets, strategies, and specific action plans

1-1 Greenhouse gas inventory and assurance status of the Company in the most recent two years

Basic information of the Company ☐ Companies with paid-in capital of NTD 10 billion or more, steel industry, and cement industry ☐ Companies with paid-in capital of NTD 5 billion or more but less than NTD 10 billion ■ Companies with paid-in capital of less than NTD 5 billion	Minimum disclosure required under the Sustainable Development Roadmap for TWSE/TPEx Listed Companies (Note 1) ■ Parent company only inventory ☐ Parent company only assurance	☐ Inventory of subsidiaries included in the consolidated financial statements ☐ Assurance of subsidiaries included in the consolidated financial statements
Scope 1/Scope 2	Total Emissions (tons CO2e)	Intensity (tons CO2e / NTD million)
---	---	---
Parent Company	6,655.4927	2.5408
Subsidiary	N/A	N/A
Total	N/A	N/A

Note 1: The Company is a listed company with paid-in capital of less than NTD 5 billion and falls under the third phase of the "Sustainable Development Roadmap for TWSE/TPEx Listed Companies." The Company will disclose parent company only inventory information in 2026.

1-1-1 Greenhouse Gas Inventory Information

Describe the greenhouse gas emissions (metric tons CO2e), intensity (metric tons CO2e/million dollars), and data coverage scope for the most recent two years.

The Taiwan parent company has completed its greenhouse gas inventory for 2025, covering Scope 1 (direct emissions) and Scope 2 (energy indirect emissions). According to the inventory results, Scope 1 greenhouse gas emissions were 485.8398 tons CO2e, and Scope 2 greenhouse gas emissions were 6,169.6529 tons CO2e, resulting in total emissions of 6,655.4927 tons CO2e. The intensity was 2.5408 tons CO2e per NTD million. If emission factors are updated in the future, the relevant inventory data will be adjusted accordingly. The final disclosed information shall be based primarily on the ESG report.

1-1-2 GHG Assurance Information

Describe the assurance status for the most recent two years as of the publication date of the annual report, including the assurance scope, assurance institution, assurance standards, and assurance opinion.

Not applicable.

1-2 GHG Reduction Targets, Strategies, and Specific Action Plans

The Company is a listed company with paid-in capital of less than NTD 5 billion. Pursuant to the Taiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies, the Company shall complete disclosure of carbon reduction targets, strategies, and specific action plans beginning in 2027.

(7) Implementation of Ethical Corporate Management and Deviations From Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof

Scope of Evaluation	Operational status
			Yes	No	Summary
I. Establishment of Ethical Management Policy and Plan	(I)	Has the Company established ethical operation policies approved by the Board of Directors’ meeting and stated in its memorandum or external correspondence the policies and practices it has for maintaining business integrity? Are the Board of Directors and the management committed to fulfilling this commitment?	V	The Company has established the “Ethical Corporate Management Best Practice Principles,” which were approved by the Board of Directors. The Company conducts business activities based on the principles of fairness, honesty, trustworthiness, and transparency, implements its ethical corporate management policy, actively prevents unethical conduct, and specifically regulates matters that the Company’s personnel should observe when performing their duties.	None
	(II)	Has the Company established an assessment mechanism for unethical conduct risk, does it perform periodic analysis and assess operating activities of relatively higher risks of unethical conduct in the scope of business, and has it established unethical conduct solutions accordingly, at least covering the preventive measures for the acts described in each subparagraph of Article 7, Paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies?	V	The Company has established a mechanism for assessing the risk of unethical conduct and has formulated preventive measures based on activities within its business scope that involve higher risks. Current major practices include requiring dual approval in procurement processes, requiring suppliers to sign integrity declarations and contractual clauses, and regularly conducting employee education and training. The Company continues to follow the “Ethical Corporate Management Best Practice Principles” and relevant regulatory requirements, and gradually strengthens its systems to ensure that a culture of ethical corporate management is embedded in daily operations.	None

Scope of Evaluation	Operational status			Deviations From “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
		Yes	No		Summary
Management	(III) Whether the Company explicitly defines procedures, guides of conduct, and disciplinary and reporting systems in the case of a violation in the preventive solutions of unethical conduct, implement them accordingly, and carries out reviews and modifications of these solutions?	V		The Company has established programs to prevent unethical conduct in accordance with the “Procedures for Ethical Management and Guidelines for Conduct,” with operating procedures, conduct guidelines, disciplinary measures for violations, and a complaint system clearly specified in such programs. The Company has designated a dedicated unit responsible for implementation and supervision. Through measures such as education and training, the whistleblowing system, contractual integrity clauses, and internal audits, the Company ensures that the system is effectively implemented. The Company also regularly reviews and revises the foregoing programs in response to regulatory updates and changes in the operating environment, and continues to strengthen its culture of ethical corporate management.	None
	(I) Has the Company assessed a trading counterpart’s ethical operation record and expressly states the ethical operation clause in the contract to be signed with the trading counterpart?	V		Our company complies with the relevant provisions of the “Trade Secrets Management Regulations” and commits to the responsibility and obligation of protecting official confidentiality and commercial information. Departing employees must sign a “Business Confidentiality and Copyright Agreement” and “Memorandum of Departing Employees” during their employment and before departure, adhering to the principle of ethical business operations.	None

Scope of Evaluation		Operational status			Deviations From “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
		Yes	No	Summary
	(II) Has the Company established a dedicated unit under the Board of Directors for promoting corporate ethical operations and periodically reporting its ethical management policy and plan for preventing unethical conduct, as well as the supervision of the implementation status to the Board of Directors (at least once per year)?	V		The Sustainability Committee under the Board of Directors serves as the dedicated unit for ethical corporate management and is responsible for planning and supervision to implement ethical governance. In 2025, the Company conducted ethical conduct education and training for 36 new employees, and provided education and training on the Procedures for Ethical Management and Guidelines for Conduct to managers and all employees, with a total of 642 participants. The annual implementation results were reported to the Board of Directors on December 18, 2025. The Company continues to strengthen ethical awareness and regulatory compliance among all employees. The Company has fully incorporated integrity clauses into its contractor and procurement contracts, requiring suppliers to undertake to comply with relevant requirements, while reserving the right to take action for breach of contract and terminate contracts. The Company has also established an anonymous reporting mechanism, incorporated the case handling process into its internal control system, and conducts regular reviews to ensure the effective operation of the mechanism.	None

Scope of Evaluation	Operational status			Deviations From “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
		Yes	No		Summary
II. Implementation of Ethical Management Practices	(III) Does the Company have any policies for preventing conflicts of interests, and channels to facilitate the reporting of conflicts of interests?	V		The Company has established conflict of interest prevention policies and reporting mechanisms in its “Ethical Corporate Management Best Practice Principles” and “Procedures for Ethical Management and Guidelines for Conduct.” The Sustainability Committee serves as the dedicated unit responsible for planning and supervision, while the General Administration Office serves as the implementation unit responsible for policy execution and implementation. If directors, managers, or other stakeholders have a conflict of interest in relation to a Board proposal or business execution, they shall proactively state such conflict and recuse themselves in accordance with the law. If employees identify any potential conflict of interest, they are required to report it to their immediate supervisors and relevant units. The Company also strengthens its management mechanisms through education and training, contractual clauses, and the whistleblowing system, and regularly reviews relevant systems in response to regulatory updates and changes in the operating environment, thereby continuing to implement its culture of ethical corporate management.	None

Operational status			Deviations From “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No		Summary
(IV) Has the Company implemented an effective accounting system and internal control system for the purpose of maintaining ethical operations? Has the internal audit unit established a relevant audit plan according to the assessment results of the risks of unethical conduct and does it audit the status of compliance with the plan for the prevention of unethical conduct, or entrust CPAs to perform an audit?	V		We have set up an accounting system and internal control system in an effort to reasonably ensure the effectiveness and efficiency as well as the reliability of financial reporting and compliance with relevant laws and regulations. Moreover, to implement the spirit of ethical management, we entrust a professional accounting firm to carry out audits on a regular basis.	None
(V) Does the Company periodically organize internal/external education training programs for ethical operations?	V		In addition to regularly conducting ethical corporate management education and training for internal personnel, the Company also proactively sends ethical corporate management declarations to external suppliers and contractors, requiring business partners to jointly comply with the principles of ethical conduct to ensure supply chain compliance and transparency. At the same time, the Company has published the “Ethical Corporate Management Best Practice Principles” on its official website, allowing employees, suppliers, customers, and other stakeholders to access them at any time. This further strengthens the culture of ethical corporate management and enhances information transparency.	None

Scope of Evaluation	Operational status			Deviations From “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Summary
III. Implementation of the Company’s Whistleblowing System
(I) Does the Company provide incentives and easy access for employees to report misconduct?
Has the Company assigned dedicated personnel to investigate the reported misconduct?
(II) Has the Company defined standard operating procedures for investigation after accepting misconduct reports, the follow-up actions to be taken after investigation, and the relevant confidentiality mechanism?
(III) Has the Company adopted any measures to prevent whistleblowers from being abused after filing complaints?	V		We have set up both electronic and physical “complaint mailboxes”. If there is a concern of a suspected violation of the rules, employees are obligated to report to management and relevant units. Complaints filed are appropriately dealt with by the President’s Office or the General Management Office. The whistleblower has the right to decide whether to remain anonymous, with management protecting the identity of the whistleblower and giving appropriate incentives.	None
IV. Enhancing Information Disclosure
Has the Company disclosed its Ethical Corporate Management Best Practice Principles and progress thereof on its website and the MOPS?	V		The Company has established a Corporate Governance section on its corporate website, where it discloses relevant corporate governance principles and information related to ethical corporate management.	None
V. If the Company has established ethical management best practice principles based on “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies”, please describe any discrepancy between the principles and their implementation:
We have formulated the “Ethical Corporate Management Best Practice Principles”, which we dedicate ourselves to complying with.
VI. Other important information material to the understanding of ethical management operations (e.g., discussion of an amendment to the ethical corporate management best practice principles defined by the Company)
The Company’s dedicated unit for material internal information examines these operating procedures at all times in order to comply with the regulatory requirements and practical management. These operating procedures are displayed at the Notice Board and the dedicated unit informs all employees of the formulation and subsequent amendments to these operating procedures via internal email. The Company’s material financial information is released truthfully on the MOPS each month for investors and stakeholders.

(8) Any other material information that would afford a better understanding of the status of the Company’s implementation of corporate governance may also be disclosed: None.

(9) Operation Status of the Internal Control System:

A. Statement of Internal Control

Statement of Internal Control System

Showing both the design and execution are effective.

(This Statement is applicable to all legal statements.)

K.S. TERMINALS INC.

Statement of Internal Control System

Date: March 12, 2026

The Company hereby declares the following with respect to its internal control system for 2025, based on the results of its self-assessment:

We acknowledge that the Board of Directors and managers are responsible for the establishment, operation, and maintenance of the internal control system. We have established such a system. The system's purpose is to provide reasonable assurance for the achievement of the objectives concerning the effectiveness and efficiency of operations (including profits, performance, and protection of asset security), reliability, timeliness, transparency, and regulatory compliance of reporting, and compliance with applicable laws, regulations, and bylaws.
Any internal control system has its inherent limitations. No matter how well an internal control system is designed, it can only provide reasonable assurance for achieving the above three objectives. Moreover, the effectiveness of an internal control system may vary as a result of changes in the environment and circumstances. However, our internal control system has a self-monitoring mechanism, and we take corrective actions immediately once a nonconformity is identified.
We judge the design and operation of the internal control system for their effectiveness with reference to the items to be judged for the effectiveness of the internal control system specified in the Regulations Governing Establishment of Internal Control Systems by Public Companies (hereinafter referred to as the "Regulations"). The judgment items of the internal control system adopted in the Regulations are divided into the following five constituent elements according to the management control process: 1. control environment; 2. risk assessment; 3. control operations; 4. information and communications; and 5. monitoring operations. Each constituent element contains a number of items. Please refer to the provisions of the abovementioned Regulations.
We have adopted the judgment items of the internal control system to assess the effectiveness of the design and implementation of the internal control system.
Based on the results of the aforementioned assessment, we confirm that our internal control system (including monitoring and management of subsidies), as of December 31, 2025, was effective in terms of its design and operation with respect to understanding the effectiveness and efficiency of operations, the reliability, timeliness, transparency, and regulatory compliance of reporting, and in its compliance with applicable laws, regulations, and bylaws, in order to reasonably ensure that these objectives are achieved.
This Statement will be a major part of our annual reports and prospectuses and will be open to the public. If there is any misrepresentation, nondisclosure, or other illegality in the contents open to the public referred to above, the legal responsibility specified in Articles 20, 32, 171, and 174 of the Securities and Exchange Act shall apply.
The Statement was approved by the Board of Directors at the meeting held on March 12, 2026. None of the 9 directors present expressed any dissent and all of them agreed with the Statement. This information is declared as an addition.

K.S. TERMINALS INC.

Chairman: Cheng Ke-Pin

President: Cheng Chieh-Yuan

Signature

B. If review of the internal control system has been conducted by entrusted CPAs, the CPAs' review report shall be disclosed: None.

(10) Punishment of the Company or its internal personnel in accordance with law, the Company's punishment of internal personnel violating internal control system regulations, main deficiencies, and improvements during the most recent year and up to the date of publication of the Annual Report: None.

(11) Major resolutions of the shareholders' meetings and Board meetings in the most recent year and as of the publication date of the annual report:

A. Important Resolutions of the Shareholders' Meeting

Meeting Date	Important Resolutions	Implementation Status
2025.06.10	1. Ratification of the 2024 financial statements (proposed by the Board of Directors)	1. Approved by resolution of the annual general meeting.
	2. Ratification of the 2024 earnings distribution proposal (proposed by the Board of Directors)	2. Approved by resolution of the annual general meeting. (The cash distribution was completed on May 7, 2025.)
	3. Approval of the amendments to the Company's “Articles of Incorporation” (proposed by the Board of Directors)	3. Approved by resolution of the annual general meeting.

B. Important Resolutions of the Board of Directors Meeting

Meeting Name	Meeting Date	Important Resolutions
1st Board Meeting in 2025	2025.03.13	1. Approved the proposal for the appointment and remuneration of the CPAs for financial statement audits 2. Passed the motion for the 2024 remuneration distribution to employees and directors. 3. Passed the motion for the review of the 2024 business report and 2024 parent company only and consolidated financial statements. 4. Passed the motion for the 2024 earnings distribution. 5. Passed the motion for the cause, meeting time, and location for the 2025 annual general meeting. 6. Passed the motion for the acceptance period for shareholder proposal rights for the 2025 annual general shareholders' meeting. 7. Passed the motion for the 2024 “Statement of Internal Control System”. 8. Approved the ratification of company organizational structure adjustments 9. Approved the investment case for establishing a manufacturing plant subsidiary in India
2nd Board Meeting in 2025	2025.05.08	1. Approved Q1 2025 consolidated financial statements 2. Approved the proposal for renewal of “directors’ and officers’ liability insurance.” 3. Approved the proposal for discussion of credit facilities with financial institutions
3rd Board meeting in 2025	2025.08.07	1. Approved the report on the 2024 sustainability report 2. For the proposal for the installation of a rooftop solar power generation system, after full discussion by the directors present, it was resolved that other alternatives would be evaluated before the proposal is submitted again to the Board of Directors for approval. 3. Approved the report on the consolidated financial statements for the second quarter of 2025 4. Approved the proposal for discussion of credit facilities with financial institutions 5. Approved the proposal for the Company to provide an endorsement/guarantee for Chien Ho Hsing Technology

Meeting Name	Meeting Date	Important Resolutions
		(Suzhou) Co., Ltd.
4th Board meeting in 2025	2025.11.06	1. Approved the report on the consolidated financial statements for the third quarter of 2025
5th Board meeting in 2025	2025.12.18	1. Approved the business objectives for 2026
2. Approved the 2026 audit plan
3. Approved the proposal to change credit facilities with financial institutions
4. Approved the proposal to submit matters to the Remuneration Committee for review
5. Approved the proposal for establishing the Scope of “entry-level employees” for the Company
6. Approved the proposal for capital increase by the manufacturing subsidiary in India
7. Approved the proposal for capital increase by the manufacturing subsidiary in Thailand
8. Approved the proposal to establish the Company’s “Sustainability Committee Regulations.”
9. Approved the proposal for the appointment of members of the first Sustainability Committee of the Company.
1st Board meeting in 2026	2026.03.12	1. Approved the proposal for the appointment and remuneration of the CPAs for financial statement audits
2. Approved the proposal for the distribution of 2025 employee remuneration and directors’ remuneration
3. Approved matters reviewed by the Remuneration Committee
4. Approved the proposal for review of the 2025 business report and 2025 parent company only and consolidated financial statements
5. Approved the 2025 earnings distribution proposal
6. Approved the proposal for amendments to the Company’s “Rules of Procedure for Shareholders’ Meetings.”
7. Approved the reasons for convening, meeting time, and venue of the 2026 annual general meeting.
8. Approved the period for accepting shareholder proposals for the 2026 annual general meeting.
9. Approved the 2025 “Statement of Internal Control System”
10. Approved the proposal for discussion of credit facilities with financial institutions
2nd Board meeting in 2026	2026.05.12	1. Approved the report on the consolidated financial statements for the first quarter of 2026.
2. Approved the proposal for discussion of credit facilities with financial institutions
3. Approved the proposal for renewal of “directors’ and officers’ liability insurance.”
4. Approved the proposal for amendments to the Company’s “Sustainable Development Best Practice Principles.”
5. Approved the proposal for amendments to the Company’s “Regulations Governing the Prevention of Insider Trading.”
6. Approved the proposal for amendments to the Company’s “Corporate Governance Best Practice Principles.”
7. Approved the proposal for amendments to the Company’s

Meeting Name	Meeting Date	Important Resolutions
		“Ethical Corporate Management Best Practice Principles.”
8. Approved the proposal for amendments to the Company’s “Procedures for Ethical Management and Guidelines for Conduct.”

(12) Documented opinions or declarations in writing made by directors or supervisors against important Board resolutions in the most recent year up to the publication date of this Annual Report: None.

(13) Resignation or dismissal of persons related to the financial report (including the Chairman, President, Chief Accounting Officer, Chief Financial Officer, Chief Internal Auditor, or Chief R&D Officer) in the most recent year and up to the date of publication of the Annual Report: None.

Information on CPA Fees

(1) Information on CPA Fees

Unit: NTD thousand

Name of the Accounting Firm	CPA Name	Audit Period	Audit Fees	Non-audit Fees	Total	Notes
EY Taiwan	Chen Ming-Hung	2025/01/01-2025/12/31	2,930	570	3,500	Tax certification of NTD 380,000 and transfer pricing report of NTD 190,000.
	Huang Yu-Ting	2025/01/01-2025/12/31

(2) If the CPA firm is replaced and the audit fee paid during the year in which the replacement occurs is less than the audit fee paid in the previous year, the amount of the audit fee before and after the replacement and the reason thereof shall be disclosed: None.

(3) Audit fees paid for the current financial year are lower than those paid for in the immediate preceding financial year by 10% or more: None.

Information on Replacement of CPAs: None.
The Company’s Chairman, President, or any manager in charge of finance or accounting matters in the most recent year holding a position at the Company’s CPA accounting firm or at an affiliate of such an accounting firm: None.

Any transfer of equities and/or pledge of or change in equities by a director, supervisor, manager, or shareholder with a stake of more than 10% in the most recent year and up to the publication date of the Annual Report:

(1) Any change in equities of directors, supervisors, managers, and major shareholders:

Unit: Shares

| Title
(Note 1) | Name | 2025 | | As of April 13, 2026 | | Notes |
| --- | --- | --- | --- | --- | --- | --- |
| | | Increase (decrease) in Shares Held | Increase (decrease) in Shares Pledged | Increase (decrease) in Shares Held | Increase (decrease) in Shares Pledged | |
| Corporate Directors | JING BAO INVESTMENT CO., LTD. | - | - | 74,000 | - | |
| Chairman | Cheng Ke-Pin | - | - | - | - | |
| Chairman and CTO | Cheng Yu-Liang | (3,000,000) | - | - | - | Payment of shares in kind |
| Director | Cheng I-Tien | - | - | - | - | |
| Chairman and General Manager | Cheng Chieh-Yuan | - | 1,500,000 | - | - | |
| Director | Cheng Wen-Shuo | (2,680,000) | - | - | - | Payment of shares in kind |
| Independent Director | Lee Yi-Lung | - | - | - | - | |
| Independent Director | Hsu Ching-Tao | - | - | - | - | |
| Independent Director | Chen Mao-Tang | - | - | - | - | |
| Independent Director | Wu Mei-Yuan | - | - | - | - | |
| Chief of Finance Division and Corporate Governance Officer | Tseng Yu-Chin | - | - | - | - | |

Note 1: Shareholders with more than 10% of the total shares of the Company shall be stated as major shareholders and indicated separately.

(2) Transfer Information:

Name	Reason for Share Transfer	Transaction Date:	Trading Counterparty	Relationship between Trading Counterparty and the Company's Directors, Supervisors, Managers, and Shareholders with More than 10% Shareholding	Shares	Transaction price
Cheng Yu-Liang	Payment of shares in kind	2025.06.27	Li Chuan Investment Co., Ltd.	Shares held by directors in the name of others	3,000,000	57.9
Cheng Wen-Shuo	Payment of shares in kind	2025.06.27	Li Chuan Investment Co., Ltd.	Shares held by directors in the name of others	2,680,000	57.9

(3) Information on share pledges: The counterparties to the share pledges are not related parties.

Relationship information, if among the 10 largest shareholders anyone is a related party, or is the spouse or a relative within the second degree of kinship with another:

April 13, 2026; Unit: shares

Name	Shares Held by the Shareholder		Shareholding of Spouse and Minor Children		Shareholding in the Names of Others		Disclosure of information on related parties or spouse relationship or relations within the second degree of kinship among top ten shareholders, including their titles or names and relationships.
	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Name	Relationship
Li Chuan Investment Co., Ltd.	13,752,103	8.83%	-	-	-	-	Cheng Yu-Liang	Representative of the company
SAN MAO INVETMNET CO., LTD.	4,253,461	2.73%	-	-	-	-	-	-
Chipuo Investment Co., Ltd.	4,000,000	2.57%	-	-	-	-	-	-
Li Chih-Yung	3,969,000	2.55%	-	-	-	-	-	-
Cheng Chieh-Yuan	3,926,057	2.52%	416,000	0.27%	-	-	-	-
Cheng Yu-Liang	3,780,191	2.43%	-	-	6,072,103	3.90%	Cheng Shang-Te Li Chuan Investment Co., Ltd.	Relatives within the second degree of kinship Representative
HUI HONG INVESTMENT CO., LTD.	3,638,135	2.34%	-	-	-	-	-	-
Huang Chi Investment Co., Ltd.	3,318,828	2.13%	-	-	-	-	-	-
Cheng I-Tien	2,964,541	1.90%	-	-	-	-	Cheng Shang-Te	First Degree of Kinship
Cheng Shang-Te	2,945,290	1.89%	-	-	-	-	Cheng Yu-Liang Cheng I-Tien	Second Degree of Kinship First Degree of Kinship

The total number of shares and total equity stake held by the same investee by the Company, its directors, managers, and any companies controlled either directly or indirectly by the Company:

Investment Enterprises (Note)	Invested by the Company		Investment by Directors and Managers, or by Directly or Indirectly Controlled Enterprises		Total Investment
	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)	Shares	Shareholding Ratio (%)
K.S.T. INTERNATIONAL HOLDINGS LIMITED.	14,540,500	100%	-	-	14,540,500	100%
JUNG PANG ENTERPRISE LTD.	10,000	100%	-	-	10,000	100%
K.S. Terminals USA LLC	3,300,000	100%	-	-	3,300,000	100%
TAIBON HOLDING LIMITED	160,000	100%	-	-	160,000	100%
Ifchic Inc.	2,500,000	100%	-	-	2,500,000	100%
K.S.TERMINALS TECHNOLOGY (THAILAND) CO.,LTD.	3,000,000	100%	-	-	3,000,000	100%
KST TERMINALS (INDIA) PRIVATE LIMITED	2,100,000	70%	-	-	2,100,000	70%
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	25,177,590	100%	-	-	25,177,590	100%
Yangde Technology Co., Ltd.	980,000	35%	-	-	980,000	35%
HONLEY AUTO. PARTS CO., LTD.	25,433,438	20.83%	-	-	25,433,438	20.83%
JIAN BANG (HONG KONG)HOLDING LIMITED	-	-	103,776,000	100%	103,776,000	100%
K.S.TERMINALS (Asia) Co.,LTD.	-	-	2,950	100%	2,950	100%
K.S.TERMINALS (THAILAND) CO.,LTD.	-	-	490,000	49%	490,000	49%
CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	-	-	7,500,000	100%	7,500,000	100%
K.S.TERMINALS COMPANY LTD VIETNAM	-	-	2,000,000	100%	2,000,000	100%
PT.KSTERMINALS TECHNOLOGY INDONESIA	-	-	1,300,000	100%	1,300,000	100%

Note 1: Long-term investments accounted for using the equity method by the Company.
Note 2: Information as of the first quarter of 2026.

III. Fundraising Status

1. Capital and Shares

(1) Source of Capital

A. Formation of Capital Stock

Date	Issue Price	Authorized Capital		Paid-in Capital		Notes
		Shares	Amount	Shares	Amount	Source of Capital	Offset by any property other than cash.	Others
1978.02	10	100,000	1,000,000	100,000	1,000,000	Capital at establishment.	None	Note 1
1982.12	10	500,000	5,000,000	500,000	5,000,000	Capital increase by cash.	None	Note 2
1987.09	10	1,500,000	15,000,000	1,500,000	15,000,000	Capital increase by debt.	Debt offset.	Note 3
1989.08	10	3,000,000	30,000,000	3,000,000	30,000,000	Capital increase by cash.	None	Note 4
1990.05	10	5,000,000	50,000,000	5,000,000	50,000,000	Capital increase by cash.	None	Note 5
1994.06	10	15,500,000	155,000,000	15,500,000	155,000,000	Capital increase by cash.	None	Note 6
1995.06	10	19,500,000	195,000,000	19,500,000	195,000,000	Capital increase by earnings.	None	Note 7
1996.01	10	14,235,000	142,350,000	14,235,000	142,350,000	Capital decrease.	None	Note 8
1998.05	10	19,135,000	191,350,000	19,135,000	191,350,000	Capital increase by cash.	None	Note 9
1998.09	10	19,935,000	199,350,000	19,935,000	199,350,000	Consolidated capital increase.	None	Note 10
1999.06	10	100,000,000	1,000,000,000	44,853,750	448,537,500	Capital increase by earnings and capital surplus.	None	Note 11
2000.07	10	100,000,000	1,000,000,000	51,761,800	517,618,000	Capital increase by earnings and employee bonus.	None	Note 12
2001.06	10	120,000,000	1,200,000,000	58,153,000	581,530,000	Capital increase by earnings and employee bonus.	None	Note 13
2002.06	10	120,000,000	1,200,000,000	65,363,900	653,639,000	Capital increase by earnings and employee bonus.	None	Note 14
2003.06	10	120,000,000	1,200,000,000	72,340,000	723,400,000	Capital increase by earnings and employee bonus.	None	Note 15
2004.06	10	120,000,000	1,200,000,000	80,000,000	800,000,000	Capital increase by earnings and employee bonus.	None	Note 16
2005.02	10	120,000,000	1,200,000,000	80,835,863	808,358,630	Capital increase by convertible bonds.	None	Note 17
2005.04	10	120,000,000	1,200,000,000	81,457,980	814,579,800	Capital increase by convertible bonds.	None	Note 18
2005.04	10	120,000,000	1,200,000,000	81,469,430	814,694,300	Capital increase by convertible bonds.	None	Note 19
2005.07	10	120,000,000	1,200,000,000	90,017,060	900,170,600	Capital increase by earnings and employee bonus.	None	Note 20
2006.04	10	120,000,000	1,200,000,000	89,884,060	898,840,600	Capital reduction by treasury stock cancellation.	None	Note 21
2006.07	10	200,000,000	2,000,000,000	96,412,560	964,125,600	Capital increase by earnings and employee bonus.	None	Note 22
2007.01	10	200,000,000	2,000,000,000	105,213,266	1,052,132,660	Capital increase by convertible bonds.	None	Note 23
2007.04	10	200,000,000	2,000,000,000	107,231,320	1,072,313,200	Capital increase by convertible bonds.	None	Note 24
2007.07	10	200,000,000	2,000,000,000	107,358,014	1,073,580,140	Capital increase by convertible bonds.	None	Note 25
2007.10	10	200,000,000	2,000,000,000	113,083,114	1,130,831,140	Capital increase by earnings and employee bonus.	None	Note 26
2007.10	10	200,000,000	2,000,000,000	113,363,651	1,133,636,510	Capital increase by convertible bonds.	None	Note 27
2008.07	10	200,000,000	2,000,000,000	116,458,884	1,164,588,840	Capital increase by convertible bonds.	None	Note 28
2009.09	10	200,000,000	2,000,000,000	119,937,650	1,199,376,500	Capital increase by earnings.	None	Note 29
2010.04	10	200,000,000	2,000,000,000	120,201,650	1,202,016,500	Capital increase by employee stock options.	None	Note 30
2010.08	10	200,000,000	2,000,000,000	120,258,650	1,202,586,500	Capital increase by employee stock options.	None	Note 31
2010.09	10	200,000,000	2,000,000,000	129,834,782	1,298,347,820	Capital increase by earnings.	None	Note 32
2010.11	10	200,000,000	2,000,000,000	129,854,782	1,298,547,820	Capital increase by employee stock options.	None	Note 33
2010.11	10	200,000,000	2,000,000,000	129,354,782	1,293,547,820	Capital reduction by treasury stock cancellation.	None	Note 34
2011.04	10	200,000,000	2,000,000,000	129,674,782	1,296,747,820	Capital increase by employee stock options.	None	Note 35
2011.09	10	200,000,000	2,000,000,000	140,048,765	1,400,487,650	Capital increase by earnings	None	Note 36
2012.08	10	200,000,000	2,000,000,000	140,259,765	1,402,597,650	Capital increase by employee stock options.	None	Note 37

Date	Issue Price	Authorized Capital		Paid-in Capital		Notes
		Shares	Amount	Shares	Amount	Source of Capital	Offset by any property other than cash.	Others
2013.01	10	200,000,000	2,000,000,000	140,343,765	1,403,437,650	Capital increase by employee stock options.	None	Note 38
2014.04	10	200,000,000	2,000,000,000	152,488,684	1,524,886,840	Capital increase by convertible bonds.	None	Note 39
2014.08	10	200,000,000	2,000,000,000	153,186,412	1,531,864,120	Capital increase by convertible bonds.	None	Note 40
2014.11	10	200,000,000	2,000,000,000	152,545,399	1,525,453,990	Capital reduction by treasury stock cancellation and capital increase by convertible bonds.	None	Note 41
2015.01	10	200,000,000	2,000,000,000	152,608,999	1,526,089,990	Capital increase by convertible bonds.	None	Note 42
2015.05	10	200,000,000	2,000,000,000	153,965,865	1,539,658,650	Capital increase by convertible bonds.	None	Note 43
2015.08	10	200,000,000	2,000,000,000	154,570,095	1,545,700,950	Capital increase by convertible bonds.	None	Note 44
2015.08	10	200,000,000	2,000,000,000	155,654,890	1,556,548,900	Capital increase by convertible bonds.	None	Note 45

Note 1: 1978.2.10 Liu-Qi-Jian-San-Zi No. 16027

Note 4: 1989.11.7 Jing-(78)-Shang-Zi No. 132755

Note 7: 1995.7.26 Jing-(84)-Shang-Zi No. 110132

Note 10: 1998.9.29 Jing-(87)-Shang-Zi No. 7130793

Note 13: 2001.6.6 (90)-Tai-Cai-Zheng-(Yi) No. 135573

Note 16: 2004.6.29 Tai-Cai-Zheng-Yi-Zi No. 0930128673

Note 19: 2004.5.18 Tai-Cai-Zheng-Yi-Zi No. 0930118881

Note 22: 2006.7.5 Jin-Guan-Zheng-Yi-Zi No. 0950128532

Note 25: 2007.7.25 Jing-Shou-Shang-Zi No. 09601171910

Note 28: 2008.7.18 Jing-Shou-Shang-Zi No. 09701178900

Note 31: 2010.4.20 Jing-Shou-Shang-Zi No. 09901069190

Note 34: 2010.11.22 Jing-Shou-Shang-Zi No. 09901258290

Note 37: 2012.8.10 Jing-Shou-Shang-Zi No. 10101165290

Note 40: 2014.8.11 Jing-Shou-Shang-Zi No. 10301154160

Note 43: 2015.5.12 Jing-Shou-Shang-Zi No. 10401076160

Note 2: 1982.12.20 Qi-Yi-Jian-San-Zi No. 241445

Note 5: 1990.8.28 Jing-(79)-Shang-Zi No. 118130

Note 8: 1996.11.28 Jing-(85)-Shang-Zi No. 119658

Note 11: 1999.6.25 (88)-Tai-Cai-Zheng-(Yi) No. 56083

Note 14: 2002.6.27 Tai-Cai-Zheng-Yi-Zi No. 0910135183

Note 17: 2004.5.18 Tai-Cai-Zheng-Yi-Zi No. 0930118881

Note 20: 2005.7.4 Jin-Guan-Zheng-Yi-Zi No. 0940126691

Note 23: 2007.1.18 Jing-Shou-Shang-Zi No. 09601013670

Note 26: 2007.7.16 Jin-Guan-Zheng-Yi-Zi No. 0960036626

Note 29: 2009.9.4 Jing-Shou-Shang-Zi No. 09801199720

Note 32: 2010.6.30 Jin-Guan-Zheng-Fu-Zi No. 0990033632

Note 35: 2011.4.11 Jing-Shou-Shang-Zi No. 10001067780

Note 38: 2013.1.15 Jing-Shou-Shang-Zi No. 10201008410

Note 41: 2014.11.4 Jing-Shou-Shang-Zi No. 10301228470

Note 44: 2015.8.11 Jing-Shou-Shang-Zi No. 10401163050

Note 3: 1987.9.25 Qi-Liu-Jian-San-Geng-Zi No. 291146

Note 6: 1995.1.6 Jing-(84)-Shang-Zi No. 118437

Note 9: 1998.6.2 Jing-(87)-Shang-Zi No. 113107

Note 12: 2000.7.21 (89)-Tai-Cai-Zheng-(Yi) No. 64411

Note 15: 2003.6.25 Tai-Cai-Zheng-Yi-Zi No. 0920128052

Note 18: 2004.5.18 Tai-Cai-Zheng-Yi-Zi No. 0930118881

Note 21: 2006.05.12 Jing-Shou-Shang-Zi No. 09501084440

Note 24: 2007.4.19 Jing-Shou-Shang-Zi No. 09601082570

Note 27: 2007.10.18 Jing-Shou-Shang-Zi No. 09601255230

Note 30: 2010.4.20 Jing-Shou-Shang-Zi No. 09901069190

Note 33: 2010.9.13 Jing-Shou-Shang-Zi No. 09901207490

Note 36: 2011.9.01 Jing-Shou-Shang-Zi No. 10001204760

Note 39: 2014.4.22 Jing-Shou-Shang-Zi No. 10301072320

Note 42: 2015.1.28 Jing-Shou-Shang-Zi No. 10401009160

Note 45: 2015.8.26 Jing-Shou-Shang-Zi No. 10401178720

B. Type of Shares
April 13, 2026; Unit: shares

Shares Type	Authorized Capital			Notes
	Outstanding Shares	Unissued Shares	Total
Registered Common Stocks	155,654,890	44,345,110	200,000,000	TWSE Listed Chares

C. Information related to issuing securities by self-registration: None.

(2) Major Shareholder List:
April 13, 2026; Unit: shares

Share Name of Major Shareholder	Shareholding	Shareholding Ratio (%)
Li Chuan Investment Co., Ltd.	13,752,103	8.83%
SAN MAO INVETMNET CO., LTD.	4,253,461	2.73%
Chipuo Investment Co., Ltd.	4,000,000	2.57%
Li Chih-Yung	3,969,000	2.55%
Cheng Chieh-Yuan	3,926,057	2.52%
Cheng Yu-Liang	3,780,191	2.43%
HUI HONG INVESTMENT CO., LTD.	3,638,135	2.34%
Huang Chi Investment Co., Ltd.	3,318,828	2.13%
Cheng I-Tien	2,964,541	1.90%
Cheng Shang-Te	2,945,290	1.89%

(3) Company Dividend Policy and Implementation Status

A. Dividend Policy

(A) After final accounting for the year, the Company shall first pay taxes and cover previous losses with the profit for the year, if any. 10% of the remaining balance may be set aside as legal reserve, provided the legal reserve does not reach the amount of the Company’s paid-in capital. In addition, special reserve may be appropriated or reversed in accordance with the regulations of the competent authorities. If there are remaining earnings, distributable earnings are conducted together with the accumulated undistributed earnings of the previous year in accordance with (2).

(B) The Company operates in the electronic components industry and strives to align with the overall environment and characteristics of the industry. The Company achieves its sustainability goals, pursues the long-term interests of shareholders, and stabilizes business performance targets, while taking into account the Company’s budget for future capital expenditures and the status of capital needs. The Company’s dividend policy is to appropriate at least 10% of its earnings after tax, less legal reserve and special reserve, as shareholder bonuses, with cash dividends accounting for at least 10% of the total dividends paid to shareholders. Earnings may not be distributed where the Company’s net income for the year does not reach 15% of the paid-in capital. The Company may distribute its accumulated undistributed earnings from the previous year if there are no earnings for the year. Where the shareholder bonus or legal reserve or capital reserve as mentioned above is paid in cash, the Board of Directors is authorized by approval of two-thirds of the directors at a meeting attended by more than half of the directors, and shall be reported at the shareholders’ meeting.

B. The dividends to be distributed as proposed at the shareholders’ meeting this year:

Under Article 31 of the Company’s Articles of Incorporation, the Board of Directors is authorized to distribute all or part of the dividends or bonuses in cash, which shall be reported at the shareholders’ meeting. Shareholder dividends of NTD 155,654,890 will be distributed as cash dividends of NTD 1 per share, based on each shareholder’s shareholding ratio as recorded in the shareholders’ register on the ex-rights/ex-dividend record date.

C. Explanation Shall be Given if There Were Projected Material Changes in Dividend Policy

There was no material change in the Company’s dividend policy.

(4) Effect upon business performance and earnings per share of any stock dividend distribution proposed or adopted at the shareholders’ meeting: Not applicable.

(5) Remuneration to Employees and Directors

A. The percentages or ranges of remuneration to employees and directors, as set forth in the Company’s Articles of Incorporation:

If the Company reports a profit for the year, it shall allocate no less than three percent as employee compensation and no more than three percent as directors’ compensation. Of the employee compensation, no less than fifty percent of the total amount shall be allocated to entry-level employees. However, earnings shall first be used to make up accumulated losses, if any.

B. The basis for estimating the amount of employee and director remuneration, for calculating the number of shares to be distributed as employee remuneration, and the accounting treatment of the discrepancy, if any, between the actual distributed amount and the estimated figure, for the current period:

The basis for estimating the Company's remuneration to employees and directors is in compliance with the Company's Articles of Incorporation. Changes in the amount after the publication date of the annual consolidated financial report will be treated as changes in accounting estimates and adjusted in the following year.

C. Distribution of remuneration approved by the Board of Directors:

| Item | Amount | Unit: NTD thousand
How it is Distributed |
| --- | --- | --- |
| Remuneration to Employees | 8,000 | Cash |
| Remuneration to Directors | 5,500 | Cash |

D. The actual distribution of employee and director remuneration for the previous year (with an indication of the number of shares, monetary amount, and stock price, of the shares distributed), and, if there is any discrepancy between the actual distribution and the recognized employee and director remuneration, additionally the discrepancy, cause, and how it is treated:

In 2025, the Company actually distributed employee remuneration and directors' remuneration for 2024 in the amounts of NTD 24,000 thousand and NTD 9,500 thousand, respectively. There was no difference between the amounts distributed and the amounts recognized as expenses in the 2024 financial statements.

(6) Repurchase of the Company's shares: None.

Issuance of Corporate Bonds: None.
Issuance of preferred shares: None.
Issuance of Global Depository Receipts: None.
Employee Share Subscription Warrants: None.
New Restricted Employee Shares: None.
Issuance of New Shares in Connection With Mergers or Acquisitions or With Acquisitions of Shares of Other Companies: None.
Implementation of the Capital Allocation Plan: None.

IV. Overview of Operations

Description of the Business

(1) Scope of Business

A. The Company’s main business is as follows:

(A) Manufacturing, processing, trading, and domestic and foreign sales of a variety of terminals.

(B) Manufacturing, processing, trading, and domestic and foreign sales of plastic products associated with terminals.

(D) Manufacturing and processing of metal stamping and plastic molds associated with terminals.

(E) CC01080 Electronics Components Manufacturing.

(F) C805050 Industrial Plastic Products Manufacturing.

(G) CC01010 Manufacture of Power Generation, Transmission and Distribution Machinery.

(H) CQ01010 Mold and Die Manufacturing.

(I) CC01040 Lighting Equipment Manufacturing.

(J) CA01130 Copper Rolling, Drawing and Extruding.

(K) CP01010 Hand Tools Manufacturing.

(L) CA04010 Surface Treatments.

(M) CC01060 Wired Communication Mechanical Equipment Manufacturing.

(N) CC01070 Wireless Communication Mechanical Equipment Manufacturing.

(O) F219010 Retail Sale of Electronic Materials.

(P) F119010 Wholesale of Electronic Materials.

(Q) C901010 Ceramic and Ceramic Products Manufacturing.

(R) CC01990 Other Electrical Engineering and Electronic Machinery Equipment Manufacturing. (Power Socket).

(S) Import and export trading and distribution business of the above.

(T) ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval.

B. Major Product Items and Operating Revenue Breakdown for 2025:

Product	Weight of Business
Connectors and Wiring Devices	95.84%
Others	4.16%
Total	100.00%

C. New products planned for development:

Please see p. 2 of this Annual Report.

(2) Industry Overview

A. Current Status and Development of the Industry

(A) High Conductivity Connector

A terminal, mainly made of copper, is a metal component that connects both ends of an electrical circuit. With its excellent corrosion and wear resistance, conductivity, thermal conductivity, and ease of processing, copper is widely used in many electronic and electrical industries. Terminals are indispensable basic components when it comes to the transmission of electricity, power, and signals, and can be divided into the following categories:

a. Terminals for Internet and 4G/5G Communication

b. Terminals for IoT Devices at Home

c. Terminals for Infrastructure Transmission and Power Distribution Systems
d. Terminals for Public Transportation
e. Terminals for Industry 4.0 and Intelligent Automation

The Company's information terminals are mainly applied in switched power supply (SPS), uninterruptible power supply (UPS), scanners, printers, and industrial motherboards. The primary function of terminals is the transmission of signals, mostly used for wired and wireless transmission and terminal equipment, such as base stations for communication. Terminals for home appliances are primarily used for video (e.g., TVs, VCRs, and their peripherals), audio (e.g., stereos and their peripherals), and appliances related to food (e.g., refrigerators, microwaves, ovens, dishwashers). Electrical terminals include the transmission system and the transformer system (collectively called the power distribution system), as well as terminals that connect to both ends of a control system of various mechanical equipment for electrical connection. The power distribution system is large electrical apparatus that effectively delivers electricity of the power station to users. While machinery and equipment are indispensable roles in the production industry, power distribution panels, terminal boards, and various types of power transmission equipment are the sources of the above machinery and equipment. With the growth of the economy and technology, there is an increasing demand for stability and safety in electrical equipment. Due to this, terminals play a vital role in electrical products. Terminals are widely used in transportation, such as aircraft, ships, and electricity for various types of vehicles, signal transmission of dashboards, as well as electrical and mechanical systems used in high speed rail and mass rail transportation systems.

(B) Connectors for Electric Vehicles (EVs) and Conventional Vehicles and Motorcycles

The main function of a connector is providing a separable interface that connects two subsystems in an electronic or electrical system to smoothly transmit electricity or signals. In-vehicle connectors can be divided:

a. Wire End to Wire End
b. Wire End to Board End

Currently, connector functionality has advanced to include waterproof types and multi-pole designs. Combined with the global carbon neutrality trend and various countries' timelines for ending sales of gasoline vehicles, electric vehicles (EV) have been prioritized for research and development by automobile manufacturers. This has increased demand for electric vehicle control connectors and charging connectors or charging guns.

The main product for wiring devices is cable ties (zip ties), which are widely used in the electrical, horticultural, agricultural, hardware, automation, and chemical industries. The current form of cable ties is a long and thin nylon strap with one squared fixed end. The ratchet mechanism on the head of a cable tie makes the strap move forward but cannot be pulled back, making them perfect for fixing cables, bundle objects, or as temporary handcuffs.

(D) Green Energy Connector

Thanks to the subsidies in the green energy industry by governments around the world, coupled with the rising environmental and anti-nuclear awareness amongst people, demand for green energy products such as solar power and wind power has gradually increased. The Company's junction boxes for solar power generation can be used for connecting solar modules in series, as well as connecting solar modules to inverters. Additionally, our electrical terminal products are widely used in wind turbines and energy storage equipment for power transmission.

B. Links Between the Upstream, Midstream, and Downstream Segments of the Industry

We are mainly engaged in the manufacturing of electrical connectors, vehicle and motorcycle connectors, wiring devices, and green energy connectors. Electrical terminals, connectors, and wiring devices are basic parts and components for information, communications, home appliances, and electric equipment. The primary upstream raw materials in the industry are copper and plastic materials supplied by the copper and plastic industries. The terminal product industry, covers information, communication, home appliances, transportation, and basic electricity, and construction and electrical wiring industries. The links of the industry are shown below:

(A) Electrical Connectors, Vehicle and Motorcycle Connectors, Green Energy Connectors

Upstream	Midstream	Downstream	Markets
Copper and Plastic Material Suppliers	Design and Processing Manufacturers of Connectors	1. Wiring Processing Manufacturers 2. Manufacturers of Information and Communication Products, Vehicles, Electrical Appliances, Home Appliances, and New Energy Products	1. Home Appliances 2. Transportation Tools/EVs 3. Information/Communication Equipment 4. Electrical/Mechanical Equipment 5. Solar/Wind Power 6. Energy Storage Equipment

(B) Wiring Devices

Upstream	Midstream	Downstream	Markets
Plastic Material Suppliers	Cable Tie (zip tie) Processing Manufacturers	1. Building Wiring Contractors 2. Manufacturers of Computer Communication Products, Vehicles, Electric Products, and Automation Equipment	1. Wiring for Interior Design 2. Transportation Tools 3. Computer Communication Products 4. Electrical Products 5. Automation Equipment, DIY Hardware

(C) Charging Guns, Charging Stands

Upstream	Midstream	Downstream	Markets
Copper and Plastic Material Suppliers	Manufacturers of Wires and Copper Bars	1. Charging Station Operators 2. Charging System Equipment Manufacturers (OEM) 3. OEM for EVs	1. Electric Motorcycles, Electric Mobility Scooters 2. Electric Vehicles, Electric Vans 3. Electric Buses 4. Private (community) Charging Stations 5. State-run (public) Charging Stations

C. Development Trends of Products in the Industry

(A) High Conductivity Connector

Products such as terminals and connectors are widely used. Although the development of these products is not directly subject to the prosperity of a single industry, their progress, however, is closely linked to the advancement of technology and global economy. The Company's terminal products can be applied in the following industries:

a. Terminals for Internet and 4G/5G Communication

With the improvement of network speed and popularization of mobile devices, many countries around the world have been striving to build communication base stations. With the 5G mobile network becoming more accessible, 4G base stations have gradually been replaced by 5G base stations and this will continue to drive the demand for terminals for these types of products.

b. Terminals for IoT Devices at Home

The Internet of Things (IoT) is regarded as the next generation of innovation in the electrical industry around the world. The development trend of IoT is to integrate digital communication technology and audio-visual functions to develop new application products from within. New types of home appliance products stimulate consumer demand and drive the replacement trend that further improves the usage of terminals. As conventional home appliance products are more commonly used by the public, the demand for replacement is stable, resulting in gradual growth in the market for overall home appliance products.

c. Terminals for Power Distribution Systems

Power distribution systems play relatively important roles in the electric utility industry, industrial electricity use, and people's daily lives. As there have been power shortages in Taiwan in recent years, the government has been making an effort to promote clean electricity systems such as solar power plants, off-shore wind power, and gas-fired power generation. Coupled with the eight-year USD 2.25 trillion infrastructure plan for building or upgrading the power system proposed by the Biden-Harris Administration, this will see an increase in demand for power generation, transmission systems, and transformer systems, further driving growth in the demand for related components. With the rebound of the global economy and advancement of technology, power transmission efficiency increases the demand for intelligent power grids, driving a growth of electrical terminals in the market.

d. Terminals for Public Transportation

Terminals for public transportation can be applied to power and signal transmission in aircraft, ships, railways, high-speed rail, and subway transit vehicles. Currently, terminals used in railways, high-speed rail, and subway transit vehicles constitute the majority. The growth of terminals for public transportation depends on the scale of infrastructure investment in various countries. The U.S. government has officially proposed an 8-year USD 2.25 trillion infrastructure plan that includes investments in transportation, renewable energy, manufacturing, and climate change mitigation. In the future, demand for high-current terminals used in public transportation in the U.S. market will increase significantly.

e. Terminals for Industry 4.0 and Intelligent Automation

In terms of process improvement and production efficiency enhancement, automation equipment plays a considerably important role. With factors such as product processes becoming more complex, labor shortages and rising labor costs, many companies have sped up their automation plans. The popular topic in recent years - Industrial 4.0 - is a new trend that combines automation equipment, smart control, and IoT. In conclusion, control systems for automation equipment will largely use electrical terminals, hence the reason that this industry will continue to drive demand.

(B) Connectors for Electric Vehicles (EVs) and Conventional Vehicles and Motorcycles

Since 2022, the trend has become clear that sales of electric vehicles is increasing while the sales of traditional fuel vehicles is decreasing. Europe, the U.S., and mainland China are the three largest electric vehicle markets in the world. However, because the development background, promotion policies, and deployment strategies of car dealers in the top three market are different, the development of the markets varies as well. The sales volume of all-electric vehicles in mainland China is the highest, accounting for 60% of the world. The U.S. is the country with the second largest vehicle market. The electrification level of the overall vehicle market in the Europe is the highest, reaching 42%. Currently, electric vehicles have become an important policy for promoting trends of zero carbon emissions. Government of major countries and large enterprises have taken the lead in response, successively making massive purchase of electric vehicles. Also, auto-driving functions and personal automobile software services bring additional attraction to customers, which has urged more traditional car dealers, emerging car dealers, and large vendors of consumer electronics to enter this industry that may grow with high speed in the future. As an important component of a vehicle, the connectors and chargers (charging station) for basic supply equipment are bound to have a surge in demand.

The uses of cable ties are extremely versatile and can be used in many industries. The major development of cable ties can be divided into the following:

a. General DIY, hardware, gardening, and consumer markets:

Cable ties for these industries are used by general consumers and require a variety of packaging and aesthetic design. As the demand and procurement amount are large for small-sized and lower-priced products, the quality requirement for environmental resistance is lower.

b. Professional and industrial wiring:

Cable ties used in electrical wiring, automobile, and motorcycle and electric wiring factories or wiring for interior design must pass safety certifications including UL, CSA, DNV, ABS, TUV, and GL. The quality standard for these types of cable ties is higher, with a medium demand and medium to high price range.

c. Construction and decoration projects:

Cable ties used in decoration projects must meet safety regulations, such as flame resistance and insulation standards. Sometimes there are other attached requirements including color and shape.

(D) Green Energy Connector

There are many applications for solar power, such as ground-mounted solar power panels, roof-mounted solar power panels, and building-mounted solar power panels. With the support of the government, the future of these solar power panels is promising. The Company's development of special and economical solar power junction box products is completed and has passed international certification, and is now available in the market.

Given that the instability of the renewable energy supply remains high, large-scale power outrages caused by grid failures or transmission and distribution irregularities have occurred a number of times in recent years in Taiwan. Incidents like these have given the "power storage industry" an indispensable role in the entire green energy economy. The Company's BMC connectors are equipped with high anti-dust and water resistance, and can be applied in power storage equipment, providing safe and stable high current transmission.

D. Competition of Products

(A) Electrical Connectors, Vehicle and Motorcycle Connectors, and Green Energy Connectors

Conventional electrical connectors and terminals have been developed for decades. With the advantage of low costs to set up factories in China, India, and Southeast Asian countries, the markets in these countries have become mature and relatively competitive. However, as the technology in the connector industry around the world continues to advance, electronic equipment that improves people's lives is constantly being introduced. Coupled with the fact that the IoT trend drives network infrastructure, data collection, exchange equipment, and signal sensing devices, strong demand for connector products is also prompted. Faced with fierce price competition of electrical connectors, we will continue to invest in automation production and testing processes in a bid to reduce costs and increase production, while stabilizing quality. In terms of product R&D, we strive for developing modularized products with high added value and reliability that are easy to use. In addition, we will take a proactive approach to enter emerging industries, including EVs, power storage systems, and green energy. Consequently, we are committed to increasing our competitiveness with our advantages in diverse products and fast global delivery.

(B) Wiring Devices

Cable tie and wiring device markets are mature conventional industries. The export value of Taiwan's cable ties in recent years is approximately NTD 2 billion. This product is made mainly through plastic injection. As the process is simple with a low entry level, there are many competitors in the market. In addition, with the rise of emerging markets, the major markets in Europe and the U.S. have switched to China, India, and South Asian countries. Currently the main cable tie manufacturers include China VAST Ind., and Shanghai Xinlong; HELLERMANNTYTON, T&B, and PANDUIT in Europe and the U.S.; and KSS, Hua Wei, and Yonyu in Taiwan.

(3) An Overview of the Company's Technologies and its Research and Development Work

A. R&D Expenses in the Most Recent Year and up to the Date of Publication of the Annual Report

Year	Amount(NTD thousand)
2025	141,125
As of the annual report publication date, May 12, 2026	55,026

B. Technologies and/or Products Successfully Developed

(A) High-current Charging Connectors (for EVs and power storage systems)
(B) High-current Protection-type Connectors (for EVs and power storage systems)
(C) Dashboard waterproof-type connectors
(D) Connectors for electronic fuel injection systems
(E) Connectors for ABS brake systems in motorcycles
(F) Cable ties for vehicles and motorcycles
(G) Large plastic parts injection molds, (hot) stamping molds
(H) Solenoid valve connectors
(I) Charging guns, charging sockets, and adapters for charging stations and electric vehicles
(J) DC direct current liquid-cooled charging guns
(K) Motorcycle OBDs and ECU connectors
(L) Ultra-high current copper tube terminals (UL approved)
(M) Battery connector modules for EVs
(N) Nut-type terminals (for 5G base stations and solar power stations)

C. Intellectual Property Management Plan and Implementation Status

Upholding the principles of technological innovation and sustainable development, the Company has established a comprehensive intellectual property management framework in accordance with Article 37-2 of the "Corporate Governance Best Practice Principles." The framework covers institutionalized operating mechanisms for patents, trademarks, trade secrets, and other intellectual property matters. The plan and its implementation status are reported to the Board of Directors once each year on a regular basis. The most recent report was made on November 6, 2025.

(A) Management Strategies and Objectives

Strategic alignment: In line with the expansion of the new energy vehicle charging gun product line, establish a global trademark portfolio and patent protection mechanism.

Management objectives: Strengthen the protection of R&D results and technology deployment, improve the quantity and quality of patent applications, and deepen employees' intellectual property awareness and confidentiality culture.

(B) Implementation Results in 2025:

Patent portfolio: During the year, the Company filed 5 invention patent applications and obtained a total of 4 patents in China, Taiwan, and the United States, covering core technologies such as electrical terminals and charging equipment appearance designs.

Trademark applications: The Company completed trademark applications for charging connector categories in Taiwan, China, and India. It is also actively applying for the K.S. trademark in China to strengthen product identification protection.

Education and training: During the year, the Company conducted intellectual property education and training for new employees, with 36 participants in total; patent knowledge training for R&D personnel, with 40 participants in total; and trade secret training for existing employees, with 77

participants in total. Total training hours reached 77 hours.

Confidentiality system: The Company implemented the signing of the Business Confidentiality and Copyright Agreement and the Intellectual Property Rights Statement by new employees, clearly defining intellectual property ownership and confidentiality responsibilities.

Infringement prevention: During the development stage, the Legal Office conducts patent searches and risk assessments. The Legal Office also monitors patent applications filed by major industry peers to understand technology trends and prevent potential infringement.

Rights protection mechanism: The Company has established a cross-departmental reporting mechanism, combined with market information from the Sales Department, to investigate competing products suspected of infringing the Company's intellectual property rights and assess possible legal actions.

(4) Long-term and Short-term Business Development Plans

A. Long-term Plans:

(A) Strengthening talent development, including professionals in automation technology R&D, overseas manufacturing plant management, and international marketing.
(B) Purchasing or directly generating renewable energy to reduce organizational carbon emissions.
(C) Expanding business opportunities for connector products in green energy, ESS energy storage, UPS, and electric vehicle charging (replacement) systems.

B. Short-term Plans:

(A) To upgrade the smart manufacturing management system and expand automation equipment, increasing production efficiency.
(B) Enhancing the international recognition of our company brand and providing customers with comprehensive product design services.
(C) Building local business teams in India, the United States, and other markets, along with specialized product project management (PM) teams to deepen relationships with local automobile manufacturers, system manufacturers, and distribution channel partners.

Market and Production/Sales Overview

(1) Market Analysis

A. Sales Regions for Major Products

Year Sales	2024		2025
	Sales Amount	Percentage (%)	Sales Amount	Percentage (%)
Asia	2,437,163	53.62%	2,496,413	56.79%
Taiwan	1,198,753	26.38%	1,070,119	24.34%
The US	447,596	9.85%	425,729	9.68%
Europe	458,337	10.08%	401,135	9.12%
Others	3,110	0.07%	2,709	0.07%
Net Sales	4,544,959	100.00%	4,396,105	100.00%

B. Market Share

(A) Connector Products

According to statistics compiled by the Ministry of Economic Affairs and the Company's net sales of terminal products to the total domestic and foreign sales, the market share of the Company's terminal products is roughly estimated. The below is the Company's net sales of terminal products, total domestic and foreign sales of terminal products, and the market share for the most recent two years:

Unit: NTD thousand

Year	Products of K.S. TERMINALS INC.	Domestic Terminal Products	Rough Estimates in the Market
	Net Sales (A)	Total Domestic and Foreign Sales (B)	Percentage (A)/(B)
2024	2,546,777	9,944,484	25.61%
2025	2,275,773	9,905,329	22.98%

Source of Capital: A. K.S. TERMINALS INC.

B. Statistics Compiled by the Ministry of Economic Affairs

(B) Wiring Devices

Overseas market research institutions estimate that the global cable tie market is worth nearly NTD 41 billion. As the Company began to sell and manufacture cable ties in 2008, its sales of cable ties remain low in the global cable tie market, meaning there is plenty of room for the Company to continue to expand the market in the future.

C. Demand and Supply Conditions for the Market in the Future

(A) Connectors

As our products are mainly exported to other countries, there is potential for improvement in the domestic market. Due to this, we will strengthen the expansion of our services provided to domestic cable tie processing companies and large cable tie countries, as well as private companies such as Chunghwa Telecom, Taiwan Power Company, Taiwan High Speed Rail, Taiwan Railways, Delta Electronics, CMC, and Lite-On in terms of high power, high voltage terminals or special connector products they require. Moreover, we will continue to strive to expand markets in Southeast Asia, the U.S., and Europe. Our EVConnector has been certified by the UL, CQC, CNS, and TUV, and will continue to acquire certifications from other countries.

(B) Wiring Devices

The growth in industrial momentum in Europe and the U.S. has slowed due to the post-pandemic economic recovery. With the rising demand in the markets of China, India, Indonesia, and Thailand, and the stable development in DIY and car and motorcycle markets, the overall cable tie industry still has some growth momentum each year.

D. Competitive Niche, and the Advantageous and Disadvantageous Factors for Future Development and Policies for Dealing With Them

(A) Competitive niches are explained in the following points:

a. Excellent R&D Capabilities

In light of rapid development of downstream industries, the Company has been emphasizing the importance of the development of new products. With over four decades of R&D experience, the Company has developed many talented professional people and has complete mold processing equipment. Up until now, we have developed over 4,000 sets of molds.

b. Comprehensive Product Lines to Meet Different Requirements of Customers

There are many types of terminals for diverse needs. The specifications of the terminals and connectors provided by the Company are relatively complete compared to other companies. With full cooperation of the personnel of the Operations and R&D Departments, we are able to quickly provide special products requested by customers. In addition, we also keep a close eye on market movements and launch new products in a timely fashion to meet customer needs.

c. Automation Production Equipment and Warehousing System

Taiwan's terminal industry has been developed for many years. With fierce competition in the market, it is necessary for companies to have advantages such as large production and low costs in order to increase their competitive strength. We have been focusing on the improvement and enhancement of production process technology for many years. We have developed automated production equipment to replace or assist manpower, while at the same time reducing production costs and increasing quality. In addition, we introduced an automated warehousing system in 1998 and 2020. In doing so, not only have we saved manpower but we also further improved the efficiency of warehousing operations and reduced inventory loss.

d. Excellent Product Quality

We are strict when it comes to product quality. Aside from reducing quality issues through automated equipment for production, we have also set up a quality assurance laboratory to ensure the quality of each product as zero defects is the Company's ultimate goal. In addition, our company's products have obtained safety certifications ahead of competitors, including UL, CUL, JIS, TÜV, CSA, and CQC, and are also certified under quality systems such as ISO9001, IATF16949, and IECQ-QC080000.

e. Extensive Experience of the Management Team

The Company's management team is strong, with senior managers equipped with over ten years of extensive experience. The management team grasps market trends in a timely manner and makes appropriate adjustments to operation strategies to create a sustainable development niche for the Company. Moreover, the turnover rate of the Company is low as employees have a high centripetal force. Given this, while the employees are working with stability, we can significantly reduce learning costs.

(B) Positive and Negative Factors for Future Development, and the Company's Response to Such Factors

a. Terminals and Connectors

(a) Positive Factors

i. At K.S. Terminals, we fully promote systemization, standardization, and automation through integration and transformation within the organization. We achieve the so called “computer manufacturing integration system” through integrating computers into the manufacturing process in conjunction with the new automated warehousing management and packaging system. In doing so, the Company’s production efficiency is fully enhanced and more flexible to quickly respond to the needs of diverse orders with small quantity. We also reinforce the use of technology tools including our website, e-catalog, and online sales.

ii. In terms of quality, our company is committed to improving quality yield and reliability by purchasing laboratory instruments and equipment in large quantities, such as laser film thickness meters, high-power temperature rise testers, precision insertion/extraction force testers, and environmental test chambers, ensuring strict control over the product manufacturing process. Currently, most of our products have obtained certifications such as U.S. UL, CUL, and Canadian CSA. Our factories have also passed quality certifications including ISO9001, IATF16949, and IECQ-QC080000, forming a comprehensive quality assurance system.

iii. In recent years, we have been constantly expanding our products, both in various types of terminals or dimensional specifications. Products of the world’s leading terminal manufacturers can be found in our product line, such as U.S. and worldwide standards including DIN Standards, and Japanese Industrial Standards. Our product catalogs show a high level of our expertise in the terminal industry.

iv. The main material for the Company’s terminals is copper sourced in Taiwan. This way, not only are we able to thoroughly control the speed of supply, the product quality and wide range of specifications are also complete.

(b) Negative Factors

Low-priced terminals with medium and low quality still account for the majority of the bottom of the pyramid. The competition in the market has become fierce as labor costs are low in regions such as China, Southeast Asia, Eastern Europe, South America, and India. With terminals being highly automated products, the level of automation should be strengthened in the near future to strive for the improvement of efficiency and reduction of costs. In doing so, the competitiveness in the low-priced product market can be increased.

Combining the above factors, with professional terminal production experience accumulated by the Company for over four decades, coupled with excellent quality and reputation, we are highly recognized and trusted in the global terminal industry. Now we are taking a proactive approach: new corporate identity, evolved computer manufacturing integration system, more complete product range, and more flexible and fast engineering and sales service capabilities. These will help the Company improve its international image and competitiveness moving towards the goal of “world-class professional manufacturer for terminals and connectors”.

b. Wiring Devices

(a) Positive Factors

i. 100% of plastic pellets used are from international major manufacturers for stable and reliable quality.
ii. We have professional and specialized teams for plastic mold design and manufacturing technology.
iii. We fully use and integrate the existing terminal channels so that we can immediately push into the sales market of cable ties.
iv. The new (high-end) cable tie products and extensive range of terminal products are sold together.
v. The demand is growing in DIY markets and emerging countries.

(b) Negative Factors

i. The threshold of entry for low-end cable ties is low.
ii. At present, major cable tie manufacturers have already dominated the market, making it difficult for new competitors to enter.
iii. Labor costs are lower for competitors in China, leading to price-cutting competition in channels.
iv. We have not yet achieved economic production scale; hence we are unable to reduce raw material procurement costs.

(2) Key Purpose and Production Process of Main Products

A. Important Use of Products

(A) Terminals and Connectors

Mainly used for terminal blocks and connectors in various information and communication devices, machine tools, home appliances, electromechanical equipment, energy storage equipment, and transportation industries in countries worldwide and domestically.

(B) Wiring Devices

Cable ties, also called zip ties, are a type of wiring equipment used for wire-fixing. The current form of cable tie is generally a long and thin nylon strap with one squared fixed end. The ratchet mechanism on the head of a cable tie makes the strap move forward but cannot be pulled back, making them perfect for fixing cables, or as temporary handcuffs. They are widely used in the electrical, horticultural, agricultural, hardware, and automotive industries.

B. Production Process of Major Products

(A) Terminals and Connectors

Male and Female Flag Terminals

Round/Y/Pin/Flat Pin-type Terminal

Male/Female Terminals

(B) Wiring Devices

(3) Supply Status of Main Materials

The main raw material needed for manufacturing the Company's products is copper sheets. The Company's basis for estimates is historical unit prices of inventories, long-term trends in international copper prices, and supply contracts entered into with suppliers.

We have an ongoing long-term collaborative relationship with suppliers in Taiwan and there are no expected concerns with supply.

(4) A list of any suppliers and customers accounting for 10% or more of the Company's total procurement (sales) amount in either of the most recent two years:

A. Information on major customers:

Unit: NTD thousand

Item	2024				2025				As of the first quarter of 2026.
	Name	Amount	Percentage of annual net sales [%]	Relationship With the Issuer	Name	Amount	Percentage of annual net sales [%]	Relationship With the Issuer	Name	Amount	Percentage of net sales up to the previous quarter of the current year [%]	Relationship With the Issuer
1				None				None	B0001	175,935	13.93%	None
	Others	4,544,959	100.00%		Others	4,396,105	100.00%		Others	1,087,224	86.07%
	Net Sales	4,544,959	100.00%		Net Sales	4,396,105	100.00%		Net Sales	1,263,159	100.00%

Description:

The Company's sales channels are mainly through domestic and overseas importers or indirect exporters. The overall sales to major customers is highly stable and dispersed, and there are no concerns of concentration of sales.

B. Information on major suppliers:

Unit: NTD thousand

Item	2024				2025				As of the first quarter of 2026.
	Name	Amount	As a Percentage to Annual Net Procurement (%)	Relationship With the Issuer	Name	Amount	As a Percentage to Annual Net Procurement (%)	Relationship With the Issuer	Name	Amount	As a Percentage to Net Sales for the Year Ended the Previous Quarter (%)	Relationship With the Issuer
1	B0150	540,219	19.79%	None	B0150	484,876	17.96%	None	B0001	212,893	27.16%	None
2	B0001	507,941	18.61%	None	B0001	393,086	14.56%	None	B0150	197,171	25.16%
3									B0134	101,297	12.92%
	Others	1,681,293	61.60%		Others	1,821,744	67.48%		Others	272,369	34.76%
	Net Sales	2,729,453	100.00%		Net Sales	2,699,706	100.00%		Net Sales	783,730	100.00%

Description:

As shown in the above table, there is no significant change in the suppliers accounting for 10% or more of the Company's total procurement in the most recent two years. The copper sheet suppliers for the Company's major product - copper - are B0001 and B0150. As the Company adheres to the principle of disperse procurement and buys important raw materials from two or more suppliers, there are no risks of concentrated procurement.

Employee statistics for the most recent two years up to the Annual Report publication date:

Year Item		December 31, 2024	December 31, 2025	As of April 30, 2026
Number of Employees	Direct Personnel	703	630	634
	Indirect Personnel	589	602	609
	Total	1,292	1,232	1,243
Average Age		38.91	39.86	39.95
Average Years of Service		8.40	9.18	9.18
Academic Degree Distribution	Doctoral Degree	0.08%	0.08%	0.00%
	Master's Decree	2.01%	2.15%	1.98%
	College Degree	49.61%	48.63%	48.75%
	Senior High School	29.41%	29.29%	28.89%
	Below Senior High School	18.89%	19.85%	20.38%

Information on Environmental Protection Expenditure

(1) As the Company is a professional terminal manufacturer, its process generates wastewater (sewage) and waste. Generated wastewater (sewage) is treated by the treatment plant in Changhua Binhai Industrial Zone, while waste is removed by a qualified entity. The declaration and treatment operations are handled in accordance with environmental protection laws and regulations.

A. Sewage Discharge Permit: Business wastewater (sewage) discharge at Changhua Binhai Industrial Zone is handled by the wastewater treatment plant of the Changhua Binhai Industrial Zone. We have applied for a wastewater discharge permit from Changhua Binhai Industrial Zone.

B. Pollution Prevention Payment: We pay a sewage system treatment fee to the management center of the Changhua Binhai Industrial Zone according to the established rates.

C. In terms of the manufacturing process of electroplating, aside from entrusting entities equipped with wastewater treatment equipment and a wastewater discharge permit issued by the Environmental Protection Agency, we have also set up a "metal surface treatment plant" in the Electroplating Zone, Changhua Binhai Industrial Zone. The operations of the plant are in compliance with environmental laws and regulations.

(2) Breakdown of Preventive Equipment Against Pollution
December 31, 2025
Unit: NTD thousand

Name of Equipment	Quantity	Year When it Was Acquired	Investment Cost	Undiscounted Balance	Uses and Expected Possible Benefits
Wastewater Equipment	1	2000	848	0	Effectively reduce the concentration of raw wastewater and improve the quality of effluent, achieving the national effluent criteria.
Dust Collector	1	2009	130	0	Reduce the dust in the air in the operating environment, keeping the workers healthy.
Dust Collector	1	2010	168	0	Reduce the dust in the air in the operating environment, keeping the workers healthy.
Wastewater Equipment	1	2012	150	0	Effectively reduce the concentration of raw wastewater and improve the quality of effluent, achieving the national effluent criteria.
Air Pollution Equipment	1	2014	1,333	0	Effectively reduce the concentration of emitted gases and improve the quality of air, achieving the national air pollution emission criteria.
Wastewater Treatment Improvement Project	1	2016	1,240	114	Effectively reduce the concentration of raw wastewater and improve the quality of effluent, achieving the national effluent criteria.
Dewatering Machine and Activated Carbon Adsorption Tower Replacement Project	1	2017	1,880	0	Effectively reduce the concentration of raw wastewater and improve the quality of effluent, achieving the national effluent criteria.
Wastewater Treatment Improvement Project	1	2019	886	0	Effectively reduce the concentration of raw wastewater and improve the quality of effluent, achieving the national effluent criteria.
Wastewater Treatment Improvement Project	1	2021	1,286	1,002	Effectively reduce the concentration of raw wastewater and improve the quality of effluent, achieving the national effluent criteria.
Exhaust Gas Equipment	1	2022	870	471	Reduce air pollution generated from operation, keeping workers healthy and meeting the requirements of environmental protection regulations.
Wastewater Treatment Improvement Project	1	2022	4,171	3,406	Effectively reduce the concentration of raw wastewater and improve the quality of effluent, achieving the national effluent criteria.

(3) Describe the process undertaken by the Company on environmental pollution improvement for the most recent year and up to the publication date of the Annual Report. If there was any pollution dispute, its handling process shall also be described: None.

(4) During the most recent year up to the date of publication of the Annual Report, the losses caused by environmental pollution and total amount of penalties. The future countermeasures shall also be disclosed: Pollution control equipment has been set up in accordance with the regulations for waste gas, wastewater, sludge, and other business waste. This is handled, sampled, and monitored in accordance with the law. We also entrust a legal waste disposal entity to recycle the waste generated. Moreover, the transportation process has not caused any significant adverse impact on the environment. The Company did not suffer any losses or was fined due to environmental pollution in the most recent three years.

(5) Explain the current condition of pollution and the impact of its improvement to the profits, competitive position, and capital expenditures of the Company, as well as the projected major environment-related capital expenses to be made for the coming three years: None.

(6) Health and Safety: The Company provides education and safety education to new employees so that they are aware of their operating environment and process safety regulations. We also organize regular fire evacuation drills so that employees are aware of the use of firefighting equipment as well as the evacuation routes. The Company has established an infirmary staffed by one full-time factory nurse, and arranges monthly on-site physician services. The Company actively improves the work environment and promotes workplace health. The Company has also established the "Safety and Health Work Rules," "Occupational Safety and Health Committee," "Environmental, Health and Safety Manual," and environmental, health and safety policies, demonstrating the Company's strong emphasis on its social responsibility for environmental protection and workplace safety and health.

(7) In response to the RoHS Directive:

A. Management measures in response to RoHS:

In 2007, the IECQ-QC080000: 2005 Green Product Management system was complete and began to carry out green product management activities.

B. The Company's RoHS Compliance: The Company began to introduce RoHS process and management (by purchasing additional XRF heavy metal detectors internally and conducting IQC sampling checks, while continuing to regularly entrust third-parties to perform product inspections) in 2005. Up to the publication date of the Annual Report, the product inspection results were in compliance with the RoHS requirements.

Labor Relations

(1) Implementation of Employee Welfare Measures, Further Education, and Training: As required by law, our employees are covered by labor insurance and health insurance. Additionally, we take out group medical insurance, life insurance, and accident insurance for each employee. In addition, an Employee Welfare Committee has been set up to handle employee benefits and club activities. Each year, the Company also allocates a certain amount of budget to organize training courses for employees' professional skills and supervisors' management ability.

(2) Retirement System and its Implementation:

The Company's employee retirement regulations apply to all formally appointed employees. Employee pension funds are fully appropriated under the management of the Labor Pension Reserve Supervisory Committee and deposited into a dedicated pension fund account. Since the government implemented the new labor pension system in July 2005, the Company has contributed 6% of each employee's monthly wages to the employee's individual account with the Bureau of Labor Insurance in accordance with the law. Employees may also voluntarily contribute between 0% and 6% of their monthly wages to their pension accounts. In 2025, 118 employees made voluntary pension contributions, accounting for 16.37% of all employees of the Company covered by the new system. The Company's expenses under the defined contribution plan (new labor pension system) in 2025 amounted to NTD 21,970 thousand. For employees transferred to affiliates due to organizational adjustments, years of service are calculated on a combined basis. This provides employees with multiple protections, allows them to work with peace of mind, and supports the Group's goal of talent mobility.

(3) Agreements Between Employers and Employees and Various Measures for Protecting the Interests of Employees: The Company has always valued employee welfare and a harmonious relationship between employees and employer. Additionally, we also have a humane management system and an efficient complaint channels in place. In terms of leave, as set forth by the Labor Standards Act, in addition to special leave, employees may also apply for sick leave, personal leave, menstrual leave, family care leave, maternity leave, paternity leave, and baby care leave as needed. Furthermore, the Articles of Incorporation also stipulate the ratio of employee bonus to jointly share the Company's profit. In terms of other benefits, the Company contributes to the welfare fund as required by law. Consequently, an Employee Welfare Committee has been formed by representatives from both the employer and employees, committed to providing welfare measures that are more diverse.

(4) In the most recent year and as of the publication date of the annual report, the Company entered into settlements for labor-management disputes and paid settlement amounts. However, the amounts were not material and had no material impact on the Company's financial position or operations.

Cyber Security Management

(1) Information Security Risk Management Framework

The department responsible for information security at our company is the Information Office of the General Management Office. The unit has one dedicated information security supervisor and one information security officer. Their main responsibilities include formulating and updating information security policies, planning and implementing relevant security measures, and ensuring the smooth implementation of such policies. The Information Office under the General Management Office reports the management status and implementation of information security to the Board of Directors once each year on a regular basis. The most recent report date was November 6, 2026.

The Audit Office of our company serves as the supervisory department for information security. This department is staffed with an audit supervisor and designated audit specialists. The main task of the Audit Office is to monitor the implementation of internal information security. If any deficiencies are discovered during the inspection process, the Audit Office will immediately require relevant departments to propose correction strategies and specific actions. They will also regularly review the effectiveness of improvements to reduce internal information security risks. Additionally, accountants conduct information operations audits annually. If deficiencies are found, improvement measures are required and the results of these improvements are tracked.

(2) Information Security Policy

The Company’s information security management mechanism includes the following three aspects:

A. Regulatory Framework:
Establish company information security management systems, clearly define security regulations and standards, and ensure daily operations comply with established norms. Regulate personnel operational behaviors, including access control, data transmission, and external device usage, to ensure data security and integrity. Regularly review and update information security policies and systems to address rapidly changing information environments and potential threats.

B. Technology application:
Implement information security management equipment, such as firewalls, intrusion detection systems, and anti-spam systems, to monitor and prevent unauthorized access. Implement information security management measures, conduct regular system scans and security tests to ensure system vulnerabilities are promptly repaired. Adopt multi-layered information security defense strategies to ensure comprehensive protection of data and networks.

C. Personnel training:
Conduct regular information security education and training to familiarize employees with company security policies and practical operations. Enhance information security awareness among all colleagues to ensure each employee recognizes their responsibility for information security. Train employees on how to respond to various information security threats and incidents.

(3) Cyber Security Management Measures

To effectively strengthen cyber security management and related technologies, maintain the availability, integrity, and confidentiality of information assets, and prevent internal and external deliberate or unintentional security threats, our company has adopted 6 major information and communication security management strategies, detailed as follows:

A. Computer Equipment Security Management
(A) The Company’s computer hosts and various application servers are placed in specially designed server rooms. Entry and exit to these server rooms are strictly controlled by dedicated IT personnel, and relevant access records are properly maintained for future verification.
(B) To ensure equipment operates in optimal condition, the server rooms are equipped with dedicated air conditioning systems to control the operating environment temperature. Meanwhile, chemical fire extinguishers are available in the server rooms to address general or electrical fire emergencies.
(C) Server room hosts are equipped with uninterruptible power supply (UPS) systems and voltage stabilizers to prevent system crashes caused by unstable power supply or momentary power outages. This design ensures that even during temporary short power outages, computer application systems can continue to operate stably or have ample time to shut down the system to protect the host.

B. Network Security Management
(A) Enhance network security monitoring by deploying enterprise-level firewall systems and IPS intrusion detection systems to prevent unauthorized access and defend against network hackers.

(B) The headquarters and various branch offices and representative offices use connection mechanisms with designated IP addresses or physical VPN connections. Fixed IP addresses or VPN software binding methods are set in the firewall rules to restrict non-enterprise group members from accessing internal networks and various services, with relevant connection records available for inquiry.

(C) If employees need to log in remotely to access enterprise intranet information systems (such as ERP), they must do so via company-approved and issued mobile devices or computers, and obtain corresponding Virtual Private Network (VPN) authentication information before accessing the system. VPN accounts must be bound to authenticated devices for login.

(D) In October 2025, the initial penetration test of the supply chain system was completed. The results showed no critical, high, or medium-risk vulnerabilities, indicating good security. The only low-risk issue identified was the absence of SSL encryption. The Company has completed certificate implementation and remediated the deficiency.

C. Virus Protection and Management

(A) Endpoint security protection software is pre-installed on servers and employee terminal equipment. This protection software supports automatically updated virus definition databases to effectively counter the latest virus threats. Simultaneously, the software has detection and prevention mechanisms to block improper installation of potentially harmful system executable files.

(B) Email servers are equipped with professional anti-virus and spam filtering mechanisms designed to prevent viruses or spam from entering user personal computers (PC/NB).

(C) If the anti-virus system detects or intercepts any form of virus, the system will immediately perform automatic quarantine or deletion operations. In addition, the system will automatically generate and send risk reports for computers that are infected or at risk, enabling management personnel to promptly take appropriate emergency response measures.

D. System access control

(A) For colleagues to use various application systems, they must complete an information system account application form. After approval by the responsible supervisor, the Information Office establishes the system account and sets permissions before access is granted.

(B) For account password settings, passwords must be changed within a specified period (45 days) and must meet appropriate complexity requirements (alphanumeric combination) to be accepted.

(C) When colleagues complete resignation (retirement) procedures, they must fill out a resignation application form. Upon receiving the application form, the Information Office performs deletion operations for all system accounts.

E. Ensuring System Continuous Operation

(A) System Backup: Establish online and off-site backup systems using daily backup mechanisms. In addition to backing up a copy of the system and database on other hosts at the local server room, an off-site backup mechanism is implemented using fiber optic lines to back up to another plant area, ensuring absolute security.

(B) Disaster Recovery Drill: Each system conducts drills once every six months. After selecting a restoration date reference point, data is restored from backup media to the system host, and the using department confirms the accuracy of the restored data in writing to ensure the correctness and effectiveness of the backup media.

F. Information Security Promotion and Education Training

(A) New employees receive information security policy and objective education during new employee orientation training.

(B) Regularly promote information security risks and the latest security intelligence to colleagues to strengthen personnel security awareness.

(C) Assign Information Office personnel to absorb new knowledge, continuously update information security knowledge, and participate in seminars and exchanges with other companies for mutual assistance. Join the "Taiwan Computer Emergency Response Team/Coordination Center (TWCERT/CC)" as a member to obtain information security incident consultation channels and collect security intelligence for internal promotion.

(D) In October 2025, the email social engineering penetration test was completed, with an overall click-through rate of less than 3%, indicating a high level of employee awareness.

(E) During the year, the Company successfully completed disaster recovery drills for core systems, engaged a third party to conduct information security vulnerability scans, and held employee education and training, ensuring that no material information security incidents affected operations throughout the year.

(4) Resources Invested in Cyber Security Management

A. Network hardware equipment such as firewalls, email anti-virus, spam filtering, and IPS intrusion detection systems.

B. Software systems such as endpoint protection systems, backup management software, internal network control systems, and asset software inventory systems.

C. Human resources invested include: daily system status checks, daily regular backups and off-site storage of backup media, annual information security promotion, annual system disaster recovery simulation drills, annual internal audits of information cycles, and accountant audits.

D. Information security personnel: 1 information security supervisor and 1 information security staff member, responsible for information security architecture design, security operations and monitoring, security incident response and investigation, and security policy review and revision.

(5) Major Information Security Incidents and Response Measures in the Most Recent Year

In 2025, the Company did not experience any material information security incidents.

Important Contracts

Nature of Contract	Related Party	Start and End Dates of Contract	Main Contents	Restricted Terms
Procurement Contract	Minchali	Order-type Contract	Raw Material Procurement	As set forth in the contract.
Procurement Contract	First Copper	Order-type Contract	Raw Material Procurement	As set forth in the contract.

V. Review and Analysis of Financial Position and Financial Performance and Risk Matters

Financial position

Analysis of assets, liabilities, and shareholders’ equity over the most recent two years:

Unit: NTD thousand

Year Item	2025.12.31	2024.12.31	Difference
			Amount	%
Current Assets	6,326,376	6,677,741	(351,365)	(5.26)
Property, plant and equipment	1,414,432	1,488,653	(74,221)	(4.99)
Intangible Assets	8,305	9,133	(828)	(9.07)
Other Assets	386,867	416,210	(29,343)	(7.05)
Total Assets	8,135,980	8,591,737	(455,757)	(5.30)
Current liabilities	1,165,643	1,314,438	(148,795)	(11.32)
Non-current Liabilities	401,219	564,491	(163,272)	(28.92)
Total Liabilities	1,566,862	1,878,929	(312,067)	(16.61)
Capital Stock	1,556,549	1,556,549	-	-
Capital Surplus	27,281	27,281	-	-
Retained Earnings	5,016,488	5,180,230	(163,742)	(3.16)
Other Equity	(116,073)	(115,510)	(563)	(0.49)
Treasury Stocks	-	-	-	-
Non-controlling Interests	84,873	64,258	20,615	32.08
Total shareholders’ equity	6,569,118	6,712,808	(143,690)	(2.14)
1. Current liabilities: Mainly due to the repayment of long-term borrowings due within one year.
2. Non-current liabilities: Mainly due to the repayment of long-term borrowings.
3. Non-controlling interests: Due to the capital increase by the Company’s Indian subsidiary jointly invested with another party during the period.

2. Financial performance

(1) Comparative analysis of financial performance:

Unit: NTD thousand

Year Item	2025	2024	Difference
			Amount	%
Operating income	4,396,105	4,544,959	(148,854)	(3.28)
Operating Costs	3,421,665	3,238,495	183,170	5.66
Operating Gross Profit	974,440	1,306,464	(332,024)	(25.41)
Operating Expenses	684,336	662,354	21,982	3.32
Operating Profit	290,104	644,110	(354,006)	(54.96)
Non-operating Revenue and Expenses	(21,591)	207,110	(228,701)	(110.42)
Net Profit Before Tax	268,513	851,220	(582,707)	(68.46)
Income Tax Expenses	98,973	238,236	(139,263)	(58.46)
Net Income (loss) in the Current Period	169,540	612,984	(443,444)	(72.34)
Other Income in the Current Period (net of tax)	(3,466)	24,291	(27,757)	(114.27)
Total Comprehensive Income in the Current Period	166,074	637,275	(471,201)	(73.94)
Reason: (If the change in increase/decrease is less than 20%, an analysis may be exempted.)
1. Gross profit and operating income:	Mainly due to insufficient capacity utilization, which resulted in increases in unit costs and other operating costs. In addition, taking into consideration product lifecycle issues, the Company increased its allowance for inventory obsolescence. As a result of the above factors, both gross profit and operating income decreased compared with the previous period.
2. Non-operating income and expenses:	Affected by Trump-era tariffs and the depreciation of the U.S. dollar, foreign exchange losses increased significantly. In addition, the Company recognized gains on disposal of assets from the disposal of overseas land in the previous period, while no such gains were recognized in the current period. As a result of the above factors, non-operating income and expenses decreased compared with the previous period.
3. Income tax expense:	Income tax expense decreased due to the decrease in income before tax for the period.
4. Other comprehensive income/loss for the period:	Mainly due to the appreciation of the NT dollar, which resulted in a decrease in exchange differences on translation of the financial statements of foreign operations compared with the previous period.
5. In summary, total comprehensive income for the period decreased compared with 2024.

(2) Sales volume forecast and the basis therefor: Please see p.2 of this annual report.
(3) Effect upon the Company's financial operations as well as measures to be taken in response:

To sustain business growth, the Company has aggressively promoted new products while developing new markets and customers. We have also continued to recruit international sales talent to expand our global sales coverage. Additionally, the Company's financial structure shows improved and stable performance across various analytical indicators. With this sound financial structure, we are well-positioned to meet future business growth requirements.

3. Cash Flow

(1) Analysis of liquidity over the most recent two years:

| Year
Item | 2025 | 2024 | Increase/decrease ratio |
| --- | --- | --- | --- |
| Cash flow ratio (%) | 25.01% | 9.80% | 155.20% |
| Cash flow adequacy ratio (%) | 70.37% | 77.48% | (9.18%) |
| Cash reinvestment ratio (%) | (0.22%) | (1.14%) | (80.70%) |
| Analysis and explanation for the change of ratio increase/decrease: (If the change in increase/decrease is less than 20%, an analysis may be exempted.)
The decrease in income tax paid during the period resulted in an increase in net cash inflow from operating activities. | | | |

(2) Improvement plan for insufficient liquidity: None.
(3) Cash liquidity analysis for the coming year:

Unit: NTD thousand

Cash balance at the beginning of the period (1)	Estimated annual net cash flow from operating activities (2)	Estimated annual cash outflow (3)	Expected Cash surplus (deficit) amount (1)+(2)-(3)	Expected cash deficiency remedies
				Investment plan	Financing plan
$2,396,218	$793,944	$556,266	$2,633,896	-	-
1. Analysis of changes in cash flows:
(1) Operating Activities: Primarily due to stable revenues, profitability, and collections, resulting in net cash inflow.
(2) Investing activities: Mainly due to net cash outflows arising from the increased purchase of relevant production equipment.
(3) Financing activities: Mainly due to payment of dividends, resulting in net cash outflow.
2. Expected cash deficiency remedies and liquidity analysis: None.

Effect of material capital expenditure in the most recent year on the financial status: None.
Investment policy for the most recent year, main causes of profits or losses, improvement plans and investment plans for the coming year:

(1) The Company indirectly invests in mainland China through K.S.T. INTERNATIONAL HOLDINGS LTD. For details regarding the establishment of invested companies and investments in JUNG PANG ENTERPRISE LTD., please refer to Note 13.2 of the consolidated financial statements.
(2) The main production of electrical and consumer terminal products, cable ties, continuous terminal products and plastic injection parts by CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD, as well as the investment status, please refer to Note 13.3 of the consolidated financial statements.
(3) In 2012, the Company jointly established DRACO K ENTERPRISE, LLC (renamed: K.S. Terminals USA LLC) with Taiwan Ray Electric Industries Co., Ltd. in California, USA. This subsidiary primarily sells electrical terminals, consumer terminals, cable ties, and related peripheral products. In May 2015, the Company acquired the 10% equity stake in DRACO K ENTERPRISE, LLC (renamed: K.S. Terminals USA LLC) held by Taiwan Ray Electric Industries Co., Ltd., increasing the Company's ownership to 100%. For investment details, please refer to Note 13.2 of the consolidated financial statements.

(4) The Company conducted equity exchange with CHANG LI INTERNATIONAL HOLDING LTD. invested in British Cayman Islands of others in a third region using the equity of Foshan Changli Auto Parts Co., Ltd. in China and equity of 4 companies owned by other natural persons CHI RUI (CAYMAN) HOLDING LIMITED invested in a third region. The Company’s capital increased after the equity exchange with the Company holding 5.29% of shares as of this year.

(5) In 2013, the Company established 49%-owned K.S. TERMINALS (THAILAND) CO., LTD. through subsidiary TAIBON HOLDINGS LIMITED. For details on the investment, please refer to Note 13.2 of the consolidated financial statements.

(6) IFCHIC INC. is wholly owned by the Company invested in 2014 in the U.S. The primary business of IFCHIC INC. is trading. For details on the investment, please refer to Note 13.2 of the consolidated financial statements.

(7) In 2015, the Company invested in K.S. Terminals (Asia) Co., Ltd. in Thailand through K.S.T INTERNATIONAL HOLDINGS LTD, with 100% ownership. This subsidiary primarily manufactures, processes, and sells terminal components. For investment details, please refer to Note 13.2 of the consolidated financial statements.

(8) In 2016, K.S.TERMINALS COMPANY LTD VIETNAM was invested by the Company through JIAN BANG (HONG KONG) HOLDING LIMITED, and became a wholly owned company. The primary business of the Company is trading. For details on the investment, please refer to Note 13.2 of the consolidated financial statements.

(9) In 2016, PT.KSTERMINALS TECHNOLOGY INDONESIA was invested by the Company through JIAN BANG (HONG KONG) HOLDING LIMITED, and became a wholly owned company. The primary business of the Company is trading. For details on the investment, please refer to Note 13.2 of the consolidated financial statements.

(10) In 2024, the Company invested in K.S. TERMINALS TECHNOLOGY (THAILAND) CO., LTD. in Thailand, with 100% ownership. For investment details, please refer to Note 13.2 of the consolidated financial statements.

(11) In 2024, the Company invested in K.S. TERMINALS (INDIA) PRIVATE LIMITED in India, with 70% ownership. For investment details, please refer to Note 13.2 of the consolidated financial statements.

(12) In 2025, the Company invested in KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED in India, with 100% ownership. For investment details, please refer to Note 13.2 of the consolidated financial statements.

Risk management and evaluation

(1) Impact of interest rate, exchange rate fluctuation and inflation condition on the profit/loss of the Company and future countermeasures:

A. The Company’s interest and exchange gains and losses for 2025 is as follows:

Unit: NTD thousand

Item	Year
Net exchange (losses) gains	2025
Net Operating Income	4,396,105
Net Profit Before Tax	268,513
Net exchange (losses) gains to net operating income ratio	(0.37%)
Net exchange (losses) gains to net income before income tax	(6.10%)
Interest Income	36,005
Interest income to net operating income	0.82%
Interest income to net profit before tax	13.41%
Interest Expenses	14,058
Interest expenses to net operating income	0.32%
Interest expenses to net profit before tax	5.24%

Source: Financial report audited by CPAs

B. As we have sufficient capital for robust business management, the impact of interest rate changes on the Company was not significant.

C. As the Company’s direct and indirect foreign sales account for more than 70% of its total sales, the Company timely carries out natural hedging such as exchanging foreign currencies from its foreign currency holding positions.

D. As the Company’s direct and indirect foreign sales account for more than 70% of its total sales, the impact of domestic inflation was not significant.

(2) Policies for engaging in high risk, high leverage investments, loaning funds to others, endorsement and guarantee as well as derivative transactions, main causes of profit and loss as well as future countermeasures:

We are committed to developing our core business without engaging in high-risk or high leverage investments. Loaning funds to others, endorsements and guarantees and derivatives are carried out in accordance with the “Regulations Governing Loaning of Funds”, “Regulations Governing Making of Endorsements/Guarantees”, and “Regulations Governing the Acquisition and Disposal of Assets”.

(3) Future research and development projects, and funds expected in connection therewith:

A. For the new products currently under R&D by the Company, please refer to page 2 of this annual report. As there are numerous types of newly developed products, most of which are customized products that must be developed in line with customers’ requirements and schedules, it is difficult to determine the level of resources to be invested. Accordingly, future R&D expenditures are difficult to estimate accurately. However, with the Company’s year-on-year performance growth and adjustment to the R&D strategy, expenditures are bound to increase each year.

B. In 2026, the Company expects to invest approximately 2% to 5% of its revenue for the year in R&D expenditures.

(4) Impacts of domestic/foreign important policies and law changes on the financial business of the Company and responsive measures:

The Company's finances and business were not affected due to changes in important domestic and foreign policies and laws in the most recent year. As the Company's main sales markets are scattered in Taiwan, Europe, the Americas, Southeast Asia and China, our products can be used in many industries and by many customers. As a result, the overall financial operations are less likely to be affected by changes in policies and laws in a single country or region as risks are dispersed. If there is a change across major economies or globally (e.g., a large-scale trade war), the Company immediately initiates crisis response and monitoring mechanisms from daily production and sales coordination, business management meetings to operations of the Board of Directors. By doing this, we aim to minimize the impact of drastic changes in the market or industry.

(5) Impacts of changes (including cyber security risks) in technology and industry on the financial business of the Company and countermeasures:

The Company primarily engages in the manufacturing of terminals, connectors, and cable tie-related products. Terminals and connector-related products are fundamental components for information technology, communication, consumer electronics, and electrical equipment products. The application range of terminal and connector products is extensive, and their development is not directly affected by the rise and fall of a single industry. However, overall development remains closely related to the pace of technological advancement and the global macroeconomy. The Company will adjust product development directions based on customer needs and market developments, while actively researching and developing related products and technologies (such as: 5G communications, electric vehicles, smart grids, energy storage) to cultivate new flagship products for the future.

With respect to cyber security risks, we have built a network and computer security protection control mechanism. Each year, we allocate a budget to upgrade hardware and software of the information protection system. We also engage a professional third-party entity to perform a cyber security health diagnosis. By doing so, we are able to continue to maintain the most up-to-date and effective information protection. The protection scope includes the information system hosts, internal networks, and connection devices of users. Through mechanisms such as active filtering and blocking, identity security verification, privilege hierarchy management, constant program monitoring, periodic mandatory password changes, and regular copying to the backup database, the Company strives to minimize the possibility of risks from computer virus infections and external malicious attacks on the information system.

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

As our top business philosophy is "integrity", we maintain an excellent corporate image and follow the laws and regulations. We set up a taskforce to formulate action plans in the event of a breach of the regulations or when the corporate image is affected. As of the publication date of the annual report, nothing occurred that would have affected our corporate image.

(7) Expected benefits, potential risks, and response measures for acquisitions: Not applicable.

(8) The expected benefits, potential risks, and responsive measures with regard to any plant expansion: Not applicable.

Projected possible benefits after production line began at the new factory: Not applicable.

(9) Risks and countermeasures with regard to concentrated sales or purchases:

The Company's largest customer accounted for less than 10% of net operating revenue, and therefore there was no sales concentration. With respect to suppliers, the largest supplier in 2025 accounted for approximately 17.96% of total purchases. However, under the Company's principle of diversified procurement, the Company has two or more suppliers for each key raw material, and therefore there is no risk of purchase concentration.

(10) Impacts, risks and responsive measures with regard to any major transfer of equities by directors, supervisors, or shareholders with more than 10% of ownership interest: None.

(11) Impacts on the Company, risks and responsive measures with regard to any change in management rights: Not applicable.

(12) For litigation or non-litigation matters indicating the Company and directors, supervisors, President, the actual responsible person, major shareholder with shareholding exceeding 10% of the Company and affiliates that are involved in major lawsuits with affirmative judgment or is pending in the court proceeding, non-litigation or administrative dispute cases with results capable of causing material impacts on the interests of shareholders or stock price, the dispute fact, claim amount, litigation starting date, primary litigation parties and handling status up to the date of the publication of this annual report shall be disclosed: None.

(13) Other significant risks and countermeasures:

A. Financial risk control measures: Including regular review and collection of accounts receivable, regular evaluation of bank interest rates, hedging of exchange rate fluctuations, tracking of raw material price trends, tax risk physical examination;

B. Information risk control measures: Including regular remote backup of database, firewall installation and update, anti-virus installation and update, setup of network IP authentication system, computer access privilege setting, regular anti-virus and anti-hacking drills;

C. Operational risk control measures: Including the implementation of a backup plan for factory productivity, regular implementation of emergency response drills, insurance coverage for factory equipment, fire, business interruption, quality assurance to transfer risks, major investment of establishing (expanding) a factory - implemented with a prior rigorous SWOT analysis and a resolution adopted by the Board of Directors;

D. Legal and intellectual property risk control measures: Including the establishment of product technology patent maps, use of the WIPS patent search system for assistance, regular release of regulatory compliance report, transfer of risks through liability insurance coverage for products/directors, supervisors and managers, all contracts and official documents must be strictly reviewed internally and by external legal institutions, periodic promotion of laws to relevant units, legal compliance system from the grassroots;

E. Environmental protection and occupational safety and health risk control measures include: continued operation and supervision by the Occupational Safety and Health Committee, regular internal review and continuous improvement of environmental and occupational safety and health issues, implementation of ISO14001 and ISO45001 management systems, regular identification and updates of government environmental protection and occupational safety and health regulations, and on-site services from factory physicians and nurses to assist in reviewing safety and health risks.

100

101

Other important matters

Licenses obtained by financial information transparency-related personnel:

Training period: January 1, 2025 – February 13, 2026

Title	Name	Related certificates
Chief of Finance Division and Corporate Governance Officer	Tseng Yu-Chin	Accounting Research and Development Foundation - Continuing Education Program for Chief Accounting Officers of Issuers, Securities Firms, and Stock Exchanges
		Taiwan Stock Exchange - 2025 Cathay Sustainable Finance and Climate Change Summit
		Accounting Research and Development Foundation - Workshop on Sustainability Information Preparation and Filing Practices

VI. Special Disclosures

Information on affiliates

(1) Affiliated enterprise consolidated business report

A. Organizational chart and basic information of affiliates

May 12, 2026

B. Existence of the controlling and subordinate relation set forth in Article 369-3 of the Company Act: Not applicable.

C. Businesses covered by the business operated by the overall affiliated enterprises:

(A) The businesses covered by affiliates include: manufacturing, sales of terminals, investment and international trade.

(B) Labor division of affiliates: The parent company is mainly engaged in production and sales, while sub-subsidiary in China purchases raw materials from the parent company for its own production for sales.

D. Information on Directors, Supervisors and President of Affiliated Enterprises:

Name of enterprise	Title	Name or representative(s)	Shareholding
			Number of Shares (equity)	Shareholding Ratio (%)
JUNG PANG ENTERPRISE LTD.	Director	K.S. TERMINALS INC.
Representative: Cheng Ke-Pin	USD 10,000	100%
K.S.T.INTERNATIONAL HOLDINGS LTD.	Director	K.S. TERMINALS INC.
Representative: Cheng Ke-Pin	USD 14,540,500	100%
JIAN BANG(HONG KONG)HOLDING LTD.	Director	K.S.T.INTERNATIONAL HOLDINGS LTD.
Representative: Cheng Ke-Pin	HKD 103,776,000	100%
CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	Director	JIAN BANG(HONG KONG)HOLDING LTD.
Representative: Cheng Ke-Pin	USD 7,500,000	100%
K.S. Terminals USA LLC	Director	K.S. TERMINALS INC.
Representatives: Cheng Ke-Pin, Cheng Ching-Jen, Cheng Chieh-Yuan	USD 3,300,000	100%
TAIBON HOLDING LIMITED	Director	K.S. TERMINALS INC.
Representative: Cheng Yin-Kun	USD 160,000	100%
K.S.TERMINALS (THAILAND) CO.,LTD.	Director	TAIBON HOLDING LIMITED
Representative: Cheng Hsin-Yen	THB 4,900,000	49%
IFCHIC INC	Director	K.S. TERMINALS INC.
Representative: Cheng Chieh-Yuan	USD 2,500,000	100%
K.S. TERMINALS (ASIA)CO.,LTD.	Director	K.S.T.INTERNATIONAL HOLDINGS LTD.
Representative: Cheng Hsin-Yen	THB 29,500	100%
K.S.TERMINALS COMPANYLTD VIETNAM	Director	JIAN BANG(HONG KONG)HOLDING LTD.
Representative: Cheng Hsin-Yen	USD 2,000,000	100%
PT.KSTERMINALS TECHNOLOGY INDONESIA	Director	JIAN BANG(HONG KONG)HOLDING LTD.
Representative: Cheng Hsin-Yen	USD 1,300,000	100%
K.S.TERMINALS TECHNOLOGY (THAILAND) CO.,LTD.	Director	K.S. TERMINALS INC.
Representative: Cheng Hsin-Yen	THB 30,000,000	100%
KST TERMINALS (INDIA) PRIVATE LIMITED	Director	K.S. TERMINALS INC.
Representative: Cheng Hsin-Yen	INR 21,000,000	70%
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	Director	K.S. TERMINALS INC.
Representative: Cheng Hsin-Yen	INR 251,775,900	100%

E. Operation summary of affiliated enterprise:
December 31, 2025 Unit: NTD thousands

Name of enterprise	Capital	Total Assets	Total Liabilities	Net worth	Operating income	Net operating profit (net loss)	Current profit and loss
JUNG PANG ENTERPRISE LTD.	347	12,085	808	11,277	-	(92)	(157)
K.S.T.INTERNATIONAL HOLDINGS LTD.	484,635	1,704,974	1,185	1,703,789	-	-	168,590
JIAN BANG(HONG KONG)HOLDING LTD.	415,423	1,446,311	-	1,446,311	-	(4)	168,843
Chien Ho Hsing Technology (Suzhou) Co., Ltd.	241,500	1,645,339	278,509	1,366,830	1,984,411	232,644	171,899
K.S. Terminals USA LLC	97,808	45,168	18,086	27,082	32,338	(12,679)	(10,673)
TAIBON HOLDING LTD.	4,950	90,927	-	90,927	-	-	16,341
K.S.TERMINALS (THAILAND) CO.,LTD.	9,513	186,093	22,462	163,631	128,110	33,237	33,337
IFCHIC INC	78,727	65,116	1,166	63,950	61,626	(2,618)	(3,066)
K.S. TERMINALS (ASIA)CO.,LTD.	28	5,268	5,408	(140)	-	(275)	(161)
K.S.TERMINALS COMPANY LTD VIETNAM	60,498	64,570	16,561	48,009	40,416	2,953	2,126
PT.KSTERMINALS TECHNOLOGY INDONESIA	40,413	21,851	6,742	15,109	8,328	(2,702)	(2,815)
K.S.TERMINALS TECHNOLOGY (THAILAND) CO., LTD.	28,750	33,563	7,024	26,539	16,536	262	854
KST TERMINALS (INDIA) PRIVATE LIMITED	10,997	4,837	101	4,736	-	(4,967)	(4,116)
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	99,465	79,064	(7)	79,071	-	(1,280)	(1,280)

(2) Consolidated financial statements of affiliated companies:

Declaration

The companies to be included by the Company in the consolidated financial statement of affiliated enterprises for 2025 (January 1, 2025 – December 31, 2025), pursuant to the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statement of Affiliated Enterprises, are the same as those to be included in the consolidated financial statements of the parent company and subsidiaries pursuant to Statement of International Financial Reporting Standards (IFRS) No. 10. Furthermore, the related information to be disclosed in the consolidated financial statements of affiliated enterprises has been disclosed in the consolidated financial statements of the parent company and subsidiaries. Accordingly, the Company does not need to prepare consolidated financial statements for affiliated enterprises separately.

In witness thereof, the Declaration is hereby presented.

K.S. TERMINALS INC.

Responsible person: Cheng Ke-Pin
March 12, 2026

(3) Affiliation Report: None.

Any private placement of securities within the most recent year and up to the date of the publication of this annual report: None.
Additional information required to be disclosed: None.

VII. If any of the situations listed in Article 36, Paragraph 3, Subparagraph 2 of the Act, which might materially affect shareholders’ equity or the price of the Company’s securities, has occurred during the most recent year or during the current year up to the date of publication of the annual report: None.

106

K.S. TERMINALS INC.

Chairman: Cheng Ke-Pin

AI assistant

KST Annual Report 2025

52240_rns_2026-05-22_a7a9c85a-8de3-46e4-b9dc-8e9a73071b38.pdf

Table of Contents

I. Report to the Shareholders

1. 2025 Business Report

(1) Results of the Implementation of the Business Plan:

1-1 Greenhouse gas inventory and assurance status of the Company in the most recent two years

III. Fundraising Status

1. Capital and Shares

(1) Source of Capital

B. Links Between the Upstream, Midstream, and Downstream Segments of the Industry

(A) Electrical Connectors, Vehicle and Motorcycle Connectors, Green Energy Connectors

(B) Wiring Devices

(C) Charging Guns, Charging Stands

B. Market Share

(A) Connector Products

(B) Wiring Devices

C. Demand and Supply Conditions for the Market in the Future

(A) Connectors

(B) Wiring Devices

D. Competitive Niche, and the Advantageous and Disadvantageous Factors for Future Development and Policies for Dealing With Them

2. Financial performance

3. Cash Flow

VI. Special Disclosures

Declaration

AI assistant

KST — Annual Report 2025

52240_rns_2026-05-22_a7a9c85a-8de3-46e4-b9dc-8e9a73071b38.pdf

Table of Contents

I. Report to the Shareholders

1. 2025 Business Report

(1) Results of the Implementation of the Business Plan:

1-1 Greenhouse gas inventory and assurance status of the Company in the most recent two years

III. Fundraising Status

1. Capital and Shares

(1) Source of Capital

B. Links Between the Upstream, Midstream, and Downstream Segments of the Industry

(A) Electrical Connectors, Vehicle and Motorcycle Connectors, Green Energy Connectors

(B) Wiring Devices

(C) Charging Guns, Charging Stands

B. Market Share

(A) Connector Products

(B) Wiring Devices

C. Demand and Supply Conditions for the Market in the Future

(A) Connectors

(B) Wiring Devices

D. Competitive Niche, and the Advantageous and Disadvantageous Factors for Future Development and Policies for Dealing With Them

2. Financial performance

3. Cash Flow

VI. Special Disclosures

Declaration

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KST Annual Report 2025