Stock Code: 3025

Loop Telecommunication International, Inc.

2025 Annual Report

Published on June 3, 2026

Annual Report's website:

http://mops.twse.com.tw

https://www.looptelecom.com/tw

I. Name, title, and contact No. of the spokesperson of the Company:
Spokesperson: Tsai Hsing-Chuan
Title: Assistant Vice President of the Business Development Department
Tel.: (03)5787696 ext. 1068
E-mail: [email protected]
Acting spokesperson: Chiang Hui-Ping
Title: Assistant manager of the Sales Department
Tel.: (03)5787696 ext. 8101
E-mail: [email protected]

II. Address and phone number of headquarters, branch offices and plants
Headquarters
Address: 6F, No.8, Xin'an Road, Hsinchu Science Park.
Tel.: (03)5787696
Fax: (03)5787695
Taipei Office
Address: 6F, No.36, Alley 38, Lane 358, Ruiguang Road, Neihu District, Taipei City.
Tel.: (02)26590399
Fax: (02)26592324
Tainan Office
Address: 10F, No.88, Zhongshan Road, West Central District, Tainan City.
Tel.: (06)2226860
Fax: (06)2226870
Plant
Address: 7F, No.8, Xin'an Road, Hsinchu Science Park
Tel.: (03)5787696
Fax: (03)5787695

III. Name, address, Tel., and website of the stock transfer agency
Name: Register & Transfer Agency Department of Yuanta Securities Co., Ltd
Address: No. 67, Sec. 2, Dunhua South Rd., Daan District, Taipei City
Tel.: (02)25863117
Website: http://www.yuanta.com.tw

IV. Names of CPAs for the most recent year and the name, address, Tel., and website of the CPA's firm:
CPA: Wen Chih-Yuan and Yeh Dong-Hui
Firm: Deloitte & Touche Taiwan
Address: 6F, No.2, Zhanye 1st Road, Hsinchu Science Park.
Tel.: (03)5780899
Website: www.deloitte.com.tw

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

VI. The Company Website: www.looptelecom.com

Table of Content

(I) Business Report to Shareholders...1
1. 2025 operating results...4
2. Summary of the Business Plan of the Year (2026)...11
3. Future development strategies...13
4. Effects of the external competitive environment...14
5. Effects of the regulatory environment and macroeconomic environment...15

(II) Corporate Governance Report...16
1. Data on Directors, President, Vice Presidents, Assistant Vice Presidents, and directors of departments and branches...16
2. Corporate governance implementation...31
3. Information on CPA fees...75
4. Information on replacement of CPAs...76
5. The Chairman, President, or managers in charge of financial or accounting matters of the Company working in the CPA's firm or its affiliates in the most recent year...77
6. Transfer of equity and changes in equity pledges of Directors, supervisors, managers, and shareholders with a shareholding of 10% and above in the most recent year and up to the date of publication of the annual report...77
7. Information on relationships between shareholders with the top ten shareholdings...78
8. The total number of shares held in any single investee by the Company, its Directors, managers, or any companies controlled either directly or indirectly by the Company...79

(III) Capital and shares...79
1. Capital and shares...80
2. Issuance of corporate bonds, conversion of corporate bonds, exchange of corporate bonds, corporate bonds issued under shell registry, and corporate bonds with options...86
3. Issuance of preferred shares and preferred shares with options...86
4. Global depository receipts...86
5. Employee stock options and restricted stock awards...86
6. Mergers or receipt of new shares issued by other companies...87
7. Implementation status of the capital utilization plan...87

(IV) Operational Highlights...88
1. Scope of business...88
2. Overview of market and production and marketing...111
3. The number of employees for the most recent two years and up to the date of publication of the annual report, their average years of service, average age, and education distribution ratio...122
4. Information on environmental expenditure...122
5. Labor-capital relations...123
6. Cybersecurity management...128
7. Important contracts...130
8. KPIs of the Company...130

(V) Review and analysis of financial condition and financial performance and risk management 132

Financial position 132
Financial performance 133
Cash flow analysis 133
Effect of major capital expenditures on finance and business in the most recent year 134
Investment policy for the most recent year, the main reasons for profit or loss, improvement plan, and investment plan for the coming year 134
Analysis and evaluation of risks shall be performed for the following matters in the most recent year and up to the publication date of the annual report 134
Risk management structure 139

(VI) Special Items 141

Information on affiliates 141
Regarding securities under private placement in the most recent year and up to the publication date of the annual report, the date and amount approved by the shareholders' meeting or the Board, the basis and rationale of pricing, the selection method of particular persons, reasons for the necessity of private placement, targets of the private placement, qualification and conditions, subscription quantity, relationships with the Company, participation in the Company's operations, actual subscription (or conversion) price, differences between the actual subscription (or conversion) price and the reference price, effects of the private placement of shareholders' interest, capital utilization plans after the full collection of share payments or considerations, utilization of capital from the private placement of securities, the progress of plan execution, and the exhibition of plan benefits 145
Holding or disposal of the Company's shares by its subsidiaries in the most recent year and up to the publication date of the annual report 145
Other matters that require additional explanation 145

(VII) Any of the circumstances listed in subparagraph 2, paragraph 2, Article 36 of the Securities and Exchange Act, which may materially affect shareholders' interest or the price of the Company's securities, that have occurred in the most recent year (2024) and up to the publication date of the annual report 145

(I) Business Report to Shareholders

Dear shareholders,

In 2025, under the trends of convergence and mutual integration in the global communication market, the industry continues to develop towards high-speed, intelligent, and secure advancements. As countries actively promote the upgrading of network infrastructure and respond to the increasing demands for AI, cloud applications, and information security, the critical communication and network equipment market continues to develop. For Loop, 2025 is an important year to adapt to the global communication infrastructure upgrades and the continuous increase in demand for critical applications. As the demand for high-reliability, high-bandwidth, and information security protection networks for critical infrastructure such as power, public sectors, and transportation continues to increase, the Company continues to leverage its existing technological foundation and market experience to deepen the layout of its core products and steadily advance the expansion of overseas markets in response to new opportunities brought by industry developments.

The consolidated revenue of the Company throughout the year was NT$677,719 thousand, with a net income of NT$195,605 thousand, and earnings per share were NT$3.45. After the successful transformation of Loop Telecommunication’s industry model, the profit margin has been consistently maintained above 60%, and related orders are also progressing steadily according to the established plan, supporting the overall stable operation. Overall, the Company has maintained good performance in terms of financial structure, solvency, and turnover rates, demonstrating operational resilience and a strong profit foundation.

Regarding our business, there were 41 countries having business dealings with the Company worldwide last year. Export sales accounted for about 75% of the annual revenue. Among them, the American, EU, and Taiwan markets all showed stable performance. In terms of industry, electricity and government agencies account for about 70% of the total revenue, while the communication and transportation markets have shown an 81% growth due to the development and application results of new products. In 2025, approximately 80% of the revenue came from 15% of the countries we engaged with; among all 27 product lines, about 80% of the revenue was from 15% of the sales product lines, indicating that the Company's market focus strategy has gradually shown results. In the future, the Company will continue to deepen its presence in the European, American, and Taiwan markets, actively expand into emerging markets, and collaborate with international SI factory to develop next-generation communication technology, serving as a key driver for continuous growth.

I. Operating Results and Transformation Opportunities

Loop has been focusing on Mission Critical Communication (MCC) solutions for many years, with product applications covering the user access layer, transmission backbone layer, and network core layer. These solutions are widely used in critical infrastructure sectors such as power, public sectors, transportation, oil and gas, and telecommunications. As global communication networks continue to develop towards high-speed, intelligent, and secure advancements, the MCC network architecture also evolves with customer needs, gradually shifting from traditional

TDM architecture to a hybrid architecture integrating SDH/SONET, MPLS-TP, OTN, and IP transmission. This addresses diverse requirements such as data transfer, video applications, cloud connectivity, and cybersecurity protection.

Amid this industry trend, Loop continues to invest in the research and development of new generation transmission and access integration equipment, providing solutions compatible with existing systems and offering flexible upgrade capabilities to assist customers in gradually completing upgrades and transformation on their existing network infrastructure. Through the continuous development of access aggregation multiplexers, hybrid backbone equipment, optical transmission integration equipment, and intelligent network management platforms, Loop is able to meet the overall construction needs of customers from the access layer to the backbone layer, while reducing the operational risks and costs during the network transition process.

II. Flagship Product G7800 and Market Outcomes

The company continues to use the G7800 series as the core product for the next-generation MCC backbone and access integration platform. G7800 adopts an advanced technology architecture, supporting multi-rate transmission, diverse interfaces, and flexible module Configuration (CFGN). It can provide appropriate transmission and access solutions for different application scenarios, and support customers' needs for phased construction or one-time comprehensive upgrades.

The G7800 series also features a highly programmable design, allowing customers to continue expanding functions and making customized adjustments years after the equipment has been deployed, in order to meet the MCC market's characteristics of long life cycles, high customization needs, and continuous evolution. With years of accumulated technical experience and market achievements, Loop has developed the capability to respond to the diverse needs of MCC customers in product development and system integration.

To date, the G7800 has been adopted by power companies in 11 countries, railway/subway companies in 2 countries, and has been applied to an oil and gas company in 1 country and a telecommunications company in 1 country. This indicates that the Company's products have gradually gained recognition from different critical infrastructure industry clients and continue to expand their application range in overseas markets.

III. Enhance Network Management, Cybersecurity, and AI Integration Applications

Besides transmission and access products, Loop has also been continuously enhancing the integration applications of network management, intelligent operation and maintenance, and cybersecurity protection in recent years. It has launched iNMS and iNET network management system, AI intelligent network management operation framework, automated diagnostic module, and big data analysis system to help customers improve network visibility, operational efficiency, and system resilience.

As the infrastructure of various countries continues to digitize, the demand for layered management and security isolation of IT and OT networks is increasing,

and the need for cybersecurity protection mechanisms is also continuously rising. In response to this market development trend, Loop Telecommunication has invested in the development of products such as the ISS2150 OT Firewall and is planning to promote new generation distribution layer solutions to further expand the company's presence in the MCC network security and integrated application field.

The Company's related products and development processes have obtained international information security standards and certifications such as ISO27001, IEC62443-4-1, and FIPS 140-3, which help enhance the competitiveness of the products in the critical infrastructure market and provide customers with a more comprehensive security protection foundation.

IV. Future Strategy and Product Layout

Facing the MCC market's continual development towards high-speed transmission, hybrid architecture integration, and enhanced security protection, Loop will continue to deepen the following key areas:

Continue advancing the G7800 platform upgrade and application expansion.

The company will continue to enhance the transmission, switching, encryption, and protocol conversion capabilities of the G7800 series platform, developing integrated applications supporting MPLS-TP, OTN, EoS/CEP, circuit emulation, and multi-rate interfaces to improve the platform's applicability in MCC backbone, access, and cross-layer integration construction.

Develop solutions for TDM/IP mixed transmission.

In response to the coexistence needs of customers' existing SDH/SONET networks and next-generation MPLS-TP/IP networks, the company will continue to introduce products and modules that support the coexistence of traditional circuit and packet transmission. This includes access aggregation multiplexers, hybrid backbone equipment, and related circuit protection and emulation functions, to assist customers in smoothly completing network transitions.

Expand IT/OT Isolation and Cybersecurity Protection Applications

As the cybersecurity requirements of critical infrastructure increase, Loop will continue to advance the development of OT Firewall, government configuration management, and integrated information security platform products. By integrating network management systems such as iNMS and iNET, Loop provides a comprehensive solution from network management and anomaly diagnosis to security protection to meet the needs for segmented management and security isolation of IT and OT environments.

Expand new backbone architecture and integrated solutions.

The company will continue to invest in the development of new backbone network architectures, including the integrated application of multi-layer transmission technologies such as SDH/SONET, MPLS-TP, OTN, and WDM, to support customers in constructing highly reliable, scalable, and secure backbone and access networks. Through the integration of transmission,

access, optical, and network management functions in comprehensive equipment, further enhance the company's solution completeness in the MCC market.

Focus on the transformation of critical infrastructure.

The company is deploying solutions that integrate L2/L3 switches and MPLS-TP with IEC 61850 as the core application. Promote high-density 19-inch 10GbE switches for backbone networks to ensure seamless migration of traditional services to packet transmission networks; deploy industrial-grade DIN rail models with PRP/HSR zero packet loss redundancy technology in edge fields. The series of products will incorporate a post-quantum encryption security architecture, creating a network ecosystem with both high reliability and future scalability, meeting the zero-error requirements of large-scale loop migration.

V. Conclusion

Looking to the future, the company will continue to deepen its "mission-critical, secure, and intelligent" product strategy and use the G7800 as the core platform to develop highly reliable, flexible, and integrative network solutions to strengthen the company's competitive advantage in the MCC market.

Leveraging the company's accumulated technical achievements and successful cases in the new generation backbone transmission field, we will continue to expand international market application opportunities in the future. Additionally, we will integrate product software and hardware functionalities to develop vertically integrated solutions, enhancing the added value of the overall solutions. This will gradually expand maintenance services and related application revenue sources to strengthen long-term operational momentum.

In terms of new business layout, the company will continue to optimize the MCC networking product portfolio, strengthen the introduction and application of automated test systems, and continuously expand the niche markets and application scope of various products, serving as an important foundation for future operational growth.

The Company will continue to enhance its management on the existing foundation, adhering to the business philosophy of developing new products and expanding new markets, steadily promoting business development, and continuously creating value to reward the support of shareholders and customers.

The 2025 operating results, the summary of the 2026 business plan, future development strategies of the Company, and effects of the external competitive environment, regulatory environment, and macroeconomic environment are summarized and reported as follows:

2025 operating results

(1) Implementation achievement of the business plan

The Company's total consolidated revenue for the year was NT$677,719 thousand, remaining stable compared to 2024, with an annual growth rate of 4.27%. Net income was NT$195,605 thousand,

and earnings per share (EPS) stood at NT$3.45. The profit margin of Loop Telecom has been maintained stably above 60% since 2019, which is a relatively outstanding performance in the network and communication industry. With the effects achieved through focusing on the market in Taiwan and the continual growth in different regions, Loop Telecommunication has adopted global sales and arrangements, and the regional ratio of the overall revenue will become more comprehensive. In addition, we maintained favorable performance in terms of financial structure, solvency, accounts receivable turnover, and other financial indicators.

(2) Budget execution:

Actual revenue surpassed internal estimates, driven by a favorable outlook in the communications market. In the future, we will continue to deepen our presence in the European, American, and Taiwan markets, accelerate expansion in emerging markets, and collaborate with international system integrators to develop next-generation communication technologies as new drivers for continuous growth.

(3) Analysis of financial income and expenses, and profitability:

Unit: (In Thousands of New Taiwan Dollars)

Item		2024	2025	Ratio of increase (decrease)
Financial income and expenses	Net revenue	649,951	677,719	4.27%
	Gross profit	445,115	461,626	3.71%
	Net operating (loss) profit	191,899	196,456	2.37%
Financial income and expenses	Interest income	11,902	7,116	-40.21%
	Interest expenses	1,915	2,363	23.39%
Profitability	Return on assets (%)	17.80	16.69	-6.24%
	Return on equity (%)	24.33	22.21	-8.71%
	Ratio of net profit before tax to paid-in capital (%)	42.62	39.64	-6.99%
	Net margin (%)	32.17	28.86	-10.29%
	Earnings per share (NT$)	3.68	3.45	-6.25%

(4) R&D status:

In response to industry trends, the Company has always been focusing on the spirit of R&D the R&D funding invested in 2025 Year was NT$167,185 thousand, representing an increase of NT$8,680 thousand (approximately 5.5%) from the R&D amount in 2024.

Unit: (In Thousands of New Taiwan Dollars)

Item	2024	2025
Research and development expenses	158,505	167,185
Net revenue	649,951	677,719
Ratio to net revenue	24%	25%

From 2025 to March 2026, equipment successfully developed by the Company is as follows:

February 2025 Completed the R&D of the Loop-G7800 to support the new GFE-8T card, offering 8-port 1000/100/10 Mbps Ethernet Twist-Pair RJ45 on the 10G slot and 8-port 100/10 Mbps Ethernet Twist-Pair RJ45 on the 1G slot.

February 2025 Completed the R&D of the Loop-G7800 to support the new 8POE1 board, offering 8-port 1000/100/10 Mbps BaseT Ethernet with PoE+ on the 10G slot and 8-port 100/10 Mbps Ethernet with PoE+ on the 1G slot. PoE+ is powered via the system backplane.

February 2025 Completed the R&D of the Loop-G7800 to support the new 8POE2 board, offering 8-port 1000/100/10 Mbps BaseT Ethernet with PoE+ on the 10G slot and 8-port 100/10 Mbps Ethernet with PoE+ on the 1G slot. PoE+ is powered via external supply.

February 2025 Completed the R&D of the Loop-G7800 to support the new 4POEP1 board, offering 8-port 1000/100/10 Mbps BaseT Ethernet with PoE++ on ports 2/4/6/8 in the 10G slot, and 8-port 100/10 Mbps Ethernet with PoE++ on ports 2/4/6/8 in the 1G slot. PoE++ is powered via the system backplane.

February 2025 Completed the R&D of the Loop-G7800 to support the new 4POEP2 board, offering 8-port 1000/100/10 Mbps BaseT Ethernet with PoE++ on ports 2/4/6/8 in the 10G slot, and 8-port 100/10 Mbps Ethernet with PoE++ on ports 2/4/6/8 in the 1G slot. PoE++ is powered via external supply.

February 2025 Completed the R&D of the Loop-G7800 to support the new B2G5-1-LoSW1 board with circuit emulation for STM-16/OC-48 traffic.

February 2025 Completed the R&D of the Loop-G7800 to support the new B2G5-2-LoSW1 board with circuit emulation for STM-16/OC-48 traffic.

February 2025
Completed the R&D of the Loop-O9500R-PTN to support the new 8GES16SWA02 board, featuring 8 WAN ports with 4094 VLANs.

February 2025
completed the R&D of the Loop-O9500R-PTN PTN10G card with added support for in-band network management feature G-ach (RFC-5718) and DCN channel.

May 2025
Completed the R&D of the Loop-G7800 to support the new 10S board, which is a 10-port 1GE or 1-port 10GE SFP Optical Interface Card.

May 2025
Completed the R&D of the Loop-G7800 to support the new 1XG board, which is a 1-port 10GE SFP+ Optical Interface Card.

May 2025
Completed the R&D of the Loop-G7800 Power Box, featuring two power slots to accommodate 2 x AC power adaptors, 2 x DC power converters, or 1 x AC power adaptor and 1 x DC power converter. The power module supports a 500 Watt DC (67.2~154Vdc) to DC (55Vdc, 9A) power converter and a 500 Watts AC (90 ~ 260Vac) to DC (+55Vdc, 18.5A) adaptor.

July 2025
Completed the R&D of the Loop-O9400R-PTN to support the new 8GES16SWA02 board, featuring 8 WAN ports with 4094 VLANs.

July 2025
Completed the R&D of the Loop-AM3440-CCPB-8GESWa to support Pseudowire Hitless Protection Switching.

August 2025
Completed the R&D of the Loop-G7800 to support the new EoS-CEPoSW41 board, which supports Ethernet signal transmission over SDH/SONET from any B2G5-x card (from PWS or local UNI), and vice versa. In the CC-2/CHA 10GE slot, it supports a bandwidth equivalent to an STM-16 (with EoS). The EoS service supports up to 48 VCGs.

August 2025
Completed the R&D of the Loop-G7800 to support the new TE1-FR-32-LoSW board, which supports 16-port E1 (120 ohm), Framed E1 Circuit Emulation over PSN (CES & SAToP) for Line to Switch. This product passed the "MT-2430-4 Ethernet Digital Cross-Connect 1/0 Prototype Test Specification" at the Chunghwa Telecom Laboratories Testing Center.

September 2025
Completed the R&D of the Loop-ISS2150 product, which is an industrial-grade firewall specifically designed for operational technology (OT) network security. Integrates functions such as firewall, NAT, VPN, and IPS, featuring stateful packet inspection, secure communication through IPSec VPN, and hardware redundancy to ensure high availability.

October 2025 Completed the R&D of the Loop-AM3440-CCPB-2GEa with added support for PWoMPLS functionality.

October 2025 Completed the R&D of the Loop-AM3440-CCPA with added support for IPv6 functionality.

December 2025 Completed the R&D of the next-generation 6UDTEA-02 card, supporting interfaces such as X.21 / RS232 / RS422 / V.35 / V.36 / EIA530 / RS449, and offering five different application modes. This card is applicable to the AM3440 series, O9500R-PTN series, and G7800 series.

February 2026 Completed the R&D of the Loop-AM3440-CCPB-8GESWa with added support for L3 routing functionality.

March 2026 Completed the R&D of the next-generation 8R232-02 card, supporting RS232 interface in both Sync and Async modes. This card is applicable to the AM3440 series, O9500R-PTN series, and G7800 series.

March 2026 Completed the R&D of the next-generation 8DBRA-02 card, supporting Data Bridge Async RS232 interface. This card is applicable to the AM3440 series.

In 2026, the Company completed a total of 13 brand-new and derived products with market competitiveness, including O9400R-PTN, O9500R-PTN, G7860A, iNMS network management system, and ISS2150 industrial-grade firewall, with the core product G7800 series development project serving as the year's benchmark. At the same time, the Company is also actively engaged in the strategic deployment of R&D. Looking to the future, the R&D Department will continue to optimize the technical architecture, integrating forward-looking technology reserves to provide diverse solutions for customers.

Current status of existing products and new products of the Company and future sales application and development are as follows:

Access multiplexer series products:

Broadband packet backbone networks have become popular; however, the tradition TDM access service for end equipment is still generally being used. In response to market demands, the Company has utilized proprietary FPGA technology to design and develop the new generation control card, AM3440, along with an expansion backplane featuring

Ethernet high-speed buses. This enables it to meet the end-to-end service communication requirements for various access services in TDM and packet hybrid networks. Due to differences in transmission characteristics between packet networks and the constant bit rate (CBR) performance of TDM networks, meeting stringent quality requirements such as low latency for critical mission services becomes even more challenging. The Company's self-developed end-to-end packet loss protection algorithm has the capability to meet the latency requirements of end-to-end services in packet network environments, and has been tested and verified by major international companies. Furthermore, to address the cybersecurity requirements of critical mission networks, the Company in 2023 obtained validation for compliance with the United States Federal Information Processing Standards (FIPS) 140-3 security standard for cryptographic modules. In 2024, the Company also developed MPLS-TP transmission capabilities on the AM3440 platform, enabling it to serve as an edge node for small-scale MPLS core networks. This provides customers with a flexible deployment solution that supports multi-service integration, low-latency transmission, and highly stable operation under various conditions, ranging from 5U to 1U access network levels and space constraints.

Optical communication equipment:

Due to the numerous advantages of optical fiber systems, the Company has developed several optical fiber system products, such as the Loop-O9500R PTN and Loop-O9400R PTN optical Transport Network (OTN) multiplexer equipment. The related equipment possesses backbone network transmission capabilities and high fault tolerance mechanisms, reducing the risk of single points of failure and ensuring stable network operation. With the evolution of communication technology, traditional TDM networks are increasingly unable to meet modern demands, and the industry is gradually shifting towards MPLS-TP-based Packet Transport Networks (PTN). MPLS-TP integrates packet switching with traditional transport characteristics, offering high survivability, scalability, and multi-service capability, while supporting OAM mechanisms to improve maintenance and operational efficiency. The Company has launched the Loop-O9500 PTN and Loop-O9400 PTN devices, integrating SDH/SONET and MPLS-TP technologies, supporting multiple transmission interfaces and 100G switching capacity. These devices comply with ITU and IETF international standards, providing a high-capacity optical fiber backbone network solution. In addition, in response to the demand for large bandwidth and high reliability, the Company continues to invest in the development of next-generation equipment, such as 400G transmission technology. In terms of network stability, the introduction of Hitless technology can achieve seamless transmission during equipment switching or failures, ensuring zero interruption of service. It is widely applied in critical areas such as telecommunications core networks, smart grids, and rail

transportation, effectively enhancing network reliability, Quality of Service (QoS), and Service Level Agreement (SLA) performance. Overall, optical communication transmission equipment will continue to be an important development core for the future mission-critical communication (MCC) market.

IP transmission equipment series products:

The Company has launched Loop-IP6704/AM3440-E/G7860A TDMoIP, which can transmit T1, E1, and Voice signals on IP networks and IP6510, which can transmit IP data and Voice signals on PDH networks. For Loop-IP 6704/AM3440-E products, we have successfully developed the increase in multiple different interface channels and added TDMoIP function cards for Loop-AM 3440 and Loop-O 9500. The IP6704/AM3440-E DACS product combines FPGA-designed special TDM over Ethernet with TDM DACS, elevating the design complexity. It maintains its advantages by allowing product function upgrades and the uniqueness of customization, as well as enjoying the timeliness relative to time to market. The Company has always been attaching its attention to the development of new products. For the TDM over Ethernet product and equipment market, it is confident that it can develop products that compete with large-scale international companies; by doing so, it hopes to bring up the trend for the R&D capacity of the communication system industry in Taiwan to make further breakthroughs, and to secures a seat as a top-tier large-scale international company. In addition, the design of LOOP G7860A is the first network equipment of the Company that combines SDH/SONET, PDH E1, TDMoIP, Gigabit, Ethernet, POE/POE+, T3, Stackable, and IEEE 1588 V2 functions. The development of G7860A not only satisfies the functional requirements of 2G/3G/4G/5G telecom. With our R&D experience accumulated over two decades and the market penetration capacity of marketing in markets of over 80 countries, we decided to introduce the FPGA design to improve the flexibility for customization and functional upgrades of products in the future, which is the segregation with the design of large-scale companies at present. Due to the introduction of the FPGA design, we possess mobility, timeliness, and uniqueness of customization for the R&D of new functions in the future to satisfy the requirements of customers in the market. The Company focused on the R&D of CO-end and CPE-end equipment. For the R&D segregation, apart from placing the standardized IC into the design, as the existing standards and protocols are not sufficient for the application of actual circuits and functions, peripheral circuit designs and the innovation of FPGA system functions are required to be introduced. The Company adopted the existing standards as the foundation and introduced the peripheral circuit design to create new functionality and innovation breakthroughs.

Corporate grade network management and integration solution:

The Company has deployed the iNMS/iNET system in over 50 countries worldwide. As threats to information and communication security become increasingly complex, the Company has adopted international standards such as ISO 27001, IEC 62443-4-1, and FIPS 140-3. It provides diverse security protection plans, including mechanisms to prevent single points of failure in DCN (Data Communication Network) management channels, security gateway devices integrating SPI, IDS, IPS, and DPI functions, and network management solutions compliant with international regulations to enhance the resilience of critical infrastructure networks and reduce operational risks. The Company's third-generation network management system follows the ITU-T architecture, integrating equipment such as G7800, G7820, G7860A, O9400R/PTN, O9500R/PTN, and AM3440/CCPB, and addressing both TDM and PTN/MPLS network management. The system features end-to-end service planning, automated circuit provisioning, rapid diagnostics, and micro-segmentation technology, assisting customers in upgrading their networks within existing infrastructures, reducing replacement costs, and enhancing efficiency.

5G base station transmission equipment

The Company has successfully developed switches with MPLS-TP 10G carrier Ethernet technology and has enhanced the technology for specific applications in fields such as power and transportation. By supporting IEEE 1588 PTP precise Time synchronization technology and PRP/HSR seamless redundancy protocols, ensure deterministic transmission at the microsecond level for power system protection relays and traffic signal control. In addition, by integrating AIoT edge computing capabilities, the switch is not only a data transmission node but also features self-diagnostic, traffic forecasting, and equipment maintenance analysis functions. In addition to the robust wired backbone, the new generation 5G CPE equipment developed by the Company further extends the accumulated technical experience in the optical communication domain to wireless private network applications. The equipment not only provides high-speed Ethernet services but also has strong integration capabilities, supporting customers' existing needs for voice, traditional dedicated lines, and industrial control transmission.

Summary of the Business Plan of the Year (2026)

(1) Business policy

The consolidated revenue in 2026 Q1 was NT$123,787 thousand, representing a increase of 40% compared to NT$88,142 thousand in the same period in 2025. Earnings per share was NT$0.60.

The profit margin of Loop Telecom has been maintained stably above

50% since 2019, which is a relatively outstanding performance in the network and communication industry. With the effects achieved through focusing on the Taiwan market and driving stable growth in different regions, Loop Telecom is steadily advancing towards global sales and arrangements, and the regional ratio of revenue will also become more balanced.

In terms of finance, Loop Telecom has maintained favorable performance in terms of financial structure, solvency, and accounts receivable turnover. Looking to the future, the company will continue to deepen its cooperative relationship with major international SI companies, promote stable expansion in the European and American markets, and actively develop next-generation communication technology to flexibly meet diverse customer needs, serving as a key driver for long-term growth.

(2) Estimated sales volume and its basis, and material production and marketing policy

Due to the transition in the industry pattern of Loop Telecom, it will achieve the objectives of low costs and high performance, leveraging its product R&D capacity accumulated for nearly 30 years and through effective resource management. In recent years, we have promoted the use of MCC (Mission Critical Communication) in particular application fields, and there was a breakthrough reflected in our profit margin and overall performance.

Future development strategies

Facing the MCC market's continual development towards high-speed transmission, hybrid architecture integration, and enhanced security protection, Loop will continue to deepen the following key areas:

Continue advancing the G7800 platform upgrade and application expansion.

Develop solutions for TDM/IP mixed transmission.

Expand IT/OT Isolation and Cybersecurity Protection Applications

Expand new backbone architecture and integrated solutions.

Focus on the transformation of critical infrastructure.

packet loss redundancy technology in edge fields. The series of products will incorporate a post-quantum encryption security architecture, creating a network ecosystem with both high reliability and future scalability, meeting the zero-error requirements of large-scale loop migration.

4. Effects of the external competitive environment

During the period of uncertain prospects due to the sluggish economy in the external environment, the Company continued to strive to achieve its objective of annual growth for different operations. In 2025, 80% of the Company's revenue came from 15% of the countries having dealings with us. Among all 27 product lines, 80% of the revenue was from 15% of the sales products. Adhering to the continuous development of new products and new markets is the way to maintain competitive. In terms of market and industry, we have achieved the effects of dispersed revenue and healthy development in regions worldwide. Certain competitors within the industry exited the market successively, and the dependence of existing customers on Loop Telecom has increased instead of decreased.

Effects of the regulatory environment and macroeconomic environment

The management team has been keeping abreast of policies and laws, and regulations that may affect the business and operations of the Company. In 2025, changes in relevant laws and regulations had no material effect on the Company's operations.

We wish you, ladies and gentlemen,

good health and the best of luck.

Chairman: Yeh Maw-Lin

President: Yeh Maw-Lin

Chief Accountant: Chang Xiao-Ling

(II) Corporate Governance Report

Data on Directors, President, Vice Presidents, Assistant Vice Presidents, and directors of departments and branches

(1) Data on Directors

April 28, 2026

Title	Nationality or Place of Registration	Name	Gender/Age	Date elected (appointed)	Date initially elected	Shareholding when elected		Current shareholding		Current shareholding of spouse and underage children		Shares held in the name of other persons		Major career achievements (academic background)	Concurrent duties in the Company and other companies	Other directors of departments, Directors or supervisors who are spouses or relatives within the second degree of kinship			Note
						Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio			Title	Name	Relationship
Chairman	Republic of China	Republic of China	Male/74	October 28, 1991	3 years	2025.06.26	2025.06.26	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years
Director	Chin Hua-Ling	Chin Hua-Ling	370,607	June 29, 2022	3 years	2025.06.26	2025.06.26	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years
Director	Chen Hua-Ling	Chen Hua-Ling	370,607	June 29, 2022	3 years	2025.06.26	2025.06.26	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years

Title	Nationality or Place of Registration	Name	Gender/Age	Date elected (appointed)	Date initially elected	Shareholding when elected		Current shareholding		Current shareholding of spouse and underage children		Shares held in the name of other persons		Major career achievements (academic background)	Concurrent duties in the Company and other companies	Other directors of departments, Directors or supervisors who are spouses or relatives within the second degree of kinship			Note
						Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio			Title	Name	Relationship
Independent director	Independent director	Independent director	Independent director	Independent director	2025.06.26	3 years	None	None	None	None	None	None	None	None	EMBA in Accounting Management, National Taiwan University Director of the R&D Department at Jiti Telecom Company	Chairman, Quank Technology	None	None	None
Independent director	Independent director	Independent director	Independent director	2025.06.26	3 years	2025.06.26	None	None	None	None	None	None	None	None	Assistant manager, Quan Ya Computer Co., Ltd. Chairman, Acrosser Technology Co., Ltd.	None	None	None	None
Independent director	Independent director	Independent director	Independent director	2025.06.26	3 years	2025.06.26	None	None	None	None	None	None	None	None	StarVox Comm. Inc. (U.S.A) Co-fotmder, CTO VP Engineering Centrify Corp.(U.S.A) System Quality Architect	None	None	None	None
Independent director	Independent director	Independent director	Independent director	2025.06.26	3 years	2025.06.26	None	None	None	None	None	None	None	None	Chief of the finance section, United Fiber Optic Communication Inc. Associate vice president of the management section, Aquaoptics Corp.	None	None	None	None

Note 1: If the Chairman and the President or an equivalent position (senior management) of the Company are the same person, spouse, or relatives within the first degree of kinship, the information related to the reason, reasonableness, necessity, and countermeasures (i.e., increasing the number of Independent Directors and having over half of the Directors who are not concurrently employees or managers) shall be specified.
The Chairman is concurrently the President of the Company to improve the operating efficiency and decision-making enforcement. To reinforce the independence of the Board, the Company intends to plan for improving the Board's functions and enhancing the supervisory functions in the future. Substantial measures are as follows:
(1) The current Independent Directors possess expertise in finance and accounting and the communication industry field and are able to exert their duties of supervision.
(2) Independent Directors may have comprehensive discussions at different functional committee meetings and provide professional recommendations to the Board for reference

to implement the specifications of corporate governance.

(3) Over half of the Board members are not concurrently the Company's employees or managers.

A. Major shareholder of a corporate shareholder: None.
B. Major shareholder of a corporate shareholder major shareholder who is a corporation: None.
C. Do Directors or supervisors possess five years of working experience required for business, law, finance, or corporate operations and comply with the following circumstances:

Disclosure of professional qualification of Directors and supervisors and independence of Independent Directors:

(1) Professional qualification of Directors

Name	Professional qualifications and experience (Note 1)
Chairman
Yeh Maw-Lin	Bachelor's degree in telecommunication, National Chiao Tung University; Ph.D. in electrical engineering, The University of Notre Dame; Senior manager, NYNEX.
Currently, he is the Chairman and the President of the Company; he is familiarized with the development trends in the communication and semiconductor industries. Circumstances specified in Subparagraphs of Article 30 of the Company Act do not exist.
Director
Chen Hua-Ling	Department of Public Administration of National Chung Hsing University
Possess the working experience required for business, finance, and corporate operations. Circumstances specified in Subparagraphs of Article 30 of the Company Act do not exist.
Director
Wu Ming-Ze	NYU Tandon (Polytechnic) Master degree. Used to be an AT&T-TT Transmission Department Engineer. Possess the working experience required for finance, business, and corporate operations.
Circumstances specified in Subparagraphs of Article 30 of the Company Act do not exist.
Director
Chiu Dong-Sheng	Department of Business Administration, Doshisha University. He used to be the director of the management department of Shimamura Co., Ltd., and he possesses the working experience required for business, law, finance, and corporate operations and complies with the following circumstances. Circumstances specified in Subparagraphs of Article 30 of the Company Act do not exist. None of the government, corporation, or its representative is elected.
Independent director
Wu Yu-Wen	EMBA in Accounting Management, National Taiwan University. He used to be the Director of the R&D Department at Jiti Telecom Company and is currently the Chairman of Quank Technology, possessing the working experience required for finance, accounting, business, and corporate operations. Circumstances specified in Subparagraphs of Article 30 of the Company Act do not exist. None of the government, corporation, or its representative is elected.
Independent director
Jiang Min-Shiung	National Taipei Institute of Technology. He used to be the assistant manager of Quan Ya Computer Co., Ltd. and the chairman of Acrosser Technology Co., Ltd., possessing the working experience required for finance, accounting, business, and corporate operations. Circumstances specified in Subparagraphs of Article 30 of the Company Act do not exist. None of the government,

(2) Condition disclosures for the independence of Independent Directors

Name	Number of concurrent duties as an independent director at a public company	Independence (Note 2)
Independent director Wu Yu-Wen Jiang Min-Shiung Chang Guo-Hua Ko Shu-Mei	0	Compliant with the independence specifications before being elected and during the term of office:
1. Not an employee of the company or any of its affiliates.
2. Not a Director or supervisor of the Company or any of its affiliates.
3. Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of 1% or more of the total number of issued shares of the Company or ranking in the top 10 in holdings.
4. Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of any person set out in the three preceding subparagraphs.
5. Not a director, supervisor, or employee of a corporate shareholder who directly holds over 5% of the total issued shares of the Company, or has top five ranking in shareholding, or is a representative appointed as the Director or supervisor of the Company according to paragraph 1 or paragraph 2, Article 27 of the Company Act.
6. If over half of the number of employees or shares with voting rights of the Company and another company are held by the same person, not a director, supervisor, or employee of another company.
7. If the Chairman, President, or equivalent positions of the Company or another company or institution are the same person or spouses, not a director, supervisor, or employee of another company or institution.
8. Not a Director, supervisor, manager, or shareholder holding 5% or more of

| | | the shares of a specified company or institution that has a financial or business relationship with the Company.
9. Not a proprietor, partner, director, supervisor, manager, or its spouse of a professional, proprietorship, partnership, company, or institution that provides audit services to, or receives an accumulated compensation of over NT$0.5 million within the most recent two years through providing business, legal, finance, accounting, and relevant services to the Company or its affiliates. |
| --- | --- | --- |

Note 1: Professional qualification and experience: Describe the professional qualifications and experience of the individual Directors and supervisors. For members of the Audit Committee with accounting or financial expertise, the accounting or financial backgrounds and working experience shall be specified. In addition, the existence of any circumstances set out in subparagraphs under Article 30 of the Company Act shall be specified.

Note 2: For an Independent Director, specify their independence status, including but not limited to whether the Independent Director, its spouse, or relatives within the second degree of kinship is a Director, supervisor, or employee of the Company or its affiliates, the number of shares held by the Independent Director, its spouse, or relatives within the second degree of kinship (or held in the name of others) and the ratio, whether the Independent Director is a director, supervisor, or employee of a company with particular relationships with the Company (please refer to subparagraphs 5 to 8, paragraph 1, Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies), and the compensation received in the most recent two years for providing business, legal, financial, and accounting services to the Company or its affiliates.

Board diversification and independence:

Board diversification:

To implement Board diversification, the Company clearly stated in Article 19 of its "Corporate Governance Best Practice Principles" that diversification shall be considered for the composition of Board members, an appropriate diversification policy shall be formulated based on its operations, operating patterns, and long-term development requirements, and members shall possess knowledge, skills, and literacy required to execute their duties.

To achieve the ideal objective of corporate governance, the overall Board shall possess the following abilities: (1) operational judgment, (2) accounting and financial analysis, (3) business management, (4) crisis management, (5) industry knowledge, (6) international market perspective, (7) leadership, and (8) decision-making capability.

The Company also adheres to the principles of meritocracy when selecting members of the Board with reference to gender, age, nationality, culture, and other diverse aspects. The implementation status is as follows:

Core of diversification	Basic composition							Professional background			Expertise and skills
		Nationality	Gender	Concurrently an employee	Age			Term of office and seniority of Independent Director (Less than 3 years)	Financial accounting	Industry experience	Technology	The ability to make judgments about operations	Accounting and financial analysis	Business management ability	Crisis management ability	Industry knowledge	Cosmopolitan market view	Leadership	Decision-making ability
					<60	61-70	>70
Director	Yeh Maw-Lin	Republic of China	Male	✓			✓		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Chen Hua-Ling		Female				✓		✓	✓		✓	✓	✓	✓	✓	✓	✓	✓
	Wu Ming-Ze		Male			✓			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Chiu Dong-Sheng		Male			✓			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Independent director	Wu Yu-Wen		Male			✓		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Jiang Min-Shiung		Male				✓		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Chang Guo-Hua		Male				✓		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Ko Shu-Mei		Female		✓				✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓

Currently, the Board consists of 8 members, including 2 female directors, accounting for 25%. The proportion of either gender has yet to reach one-third. The primary reason is that nominations for board candidates have historically focused on industry experience and professional background, with gender diversity not fully reflected in the selection criteria.

To enhance gender diversity on the Board, the Company will continue to implement the following measures:

I. Incorporate gender diversity as a consideration in the evaluation and selection process during board elections and supplementary nominations.
II. Encourage shareholders with nomination rights to recommend candidates who possess both professional qualifications and gender diversity.
III. Regularly review the composition of the Board and optimize it in line with corporate governance guidelines.

Board independence:

December 31, 2025

Name (Note 1)	Criteria	Possession of over five years of working experience and the following professional qualification			Independence (Note 1)
		Positions above lecturers in business, law, finance, accounting, or relevant departments required for corporate operations at a public or private university or college.	Judges, prosecutors, lawyers, accountants, or other professionals and technicians passing national exams with certificates required for corporate operations.	Possess the working experience required for business, law, finance, accounting, business, and corporate operations.	1	2	3	4	5	6	7	8	9	10	11	12
Yeh Maw-Lin	-	-	✓	-	-	-	-	✓	✓	✓	✓	✓	-	✓	✓	None
Chen Hua-Ling	-	-	-	✓	✓	-	-	✓	✓	✓	✓	✓	-	✓	✓	None
Wu Ming-Ze	-	-	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	None
Chiu Dong-Sheng	-	-	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	None
Wu Yu-Wen	-	-	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	None
Jiang Min-Shiung	-	-	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	None
Chang Guo-Hua	-	-	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	None
Ko Shu-Mei	-	-	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	None

Note 1: If a Director or supervisor complies with the following conditions two years before being elected and during the term of office, please check "✓" in the space below.
(1) Not an employee of the company or any of its affiliates.
(2) Not a Director or supervisor of the Company or any of its affiliates (however, this shall not include the concurrent position of independent directors of its parent company, subsidiaries, or subsidiaries of the same parent company established according to the Act or local laws and regulations of the countries).
(3) Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of $1\%$ or more of the total number of issued shares of the Company or ranking in the top 10 in holdings.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship of any person set out in the three preceding subparagraphs.
(5) Not a director, supervisor, or employee of a corporate shareholder who directly holds over $5\%$ of the total issued shares of the Company, or has top five ranking in shareholding, or is a representative appointed as the Director or supervisor of the Company according to paragraph 1 or paragraph 2, Article 27 of the Company Act (however, this shall not include the concurrent position of independent directors of its parent company, subsidiaries, or subsidiaries of the same parent company established according to the Act or local laws and regulations of the countries).
(6) If over half of the number of employees or shares with voting rights of the Company and another company are held by the same person, not a director, supervisor, or employee of another company (however, this shall not include the concurrent position of independent directors of its parent company, subsidiaries, or subsidiaries of the same parent company established according to the Act or local laws and regulations of the countries).
(7) If the Chairman, President, or equivalent positions of the Company or another company or institution are the same person or spouses, not a director, supervisor, or employee of another company or institution (however, this shall not include the concurrent position of independent directors of its parent company, subsidiaries, or subsidiaries of the same parent company established according to the Act or local laws and regulations of the countries).
(8) Not a Director, supervisor, manager, or shareholder holding $5\%$ or more of the shares of a specified company or institution that has a financial or business relationship with the Company (however, if a specified company or institution holds over $20\%$ (but less than $50\%$ ) of the Company's total issued shares, this shall not include the concurrent position of independent directors of its parent company, subsidiaries, or subsidiaries of the same parent company established according to the Act or local

laws and regulations of the countries).

(9) Not a proprietor, partner, director, supervisor, manager, or its spouse of a professional, proprietorship, partnership, company, or institution that provides audit services to, or receives an accumulated compensation of over NT$0.5 million within the most recent two years through providing business, legal, finance, accounting, and relevant services to the Company or its affiliates. However, this shall not apply to members of the Remuneration Committee, acquisition review committee, or special merger committee who exercise their powers according to the Securities and Exchange Act, the Business Mergers and Acquisitions Act, or other relevant laws and regulations.

(10) Not a spouse or a relative within the second degree of kinship of another Director.

(11) Note having any circumstances specified in subparagraphs of Article 30 of the Company Act.

(12) No government, corporation, or its representative who is not an employee of the Company or its affiliates is elected according to Article 27 of the Company Act.

(2) Data on President, Vice Presidents, Assistant Vice Presidents, and directors of departments and branches
April 28, 2026

Title	Nationality	Name	Gender	Date elected (appointed)	Shareholding		Shareholding of spouse and underage children		Shares held in the name of other persons		Major career achievements (academic background)	Concurrent duties in the Company and other companies	Managers who are spouses or relatives within the second degree			Remarks
					Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio			Title	Name	Relationship
Chairman and President	Republic of China	Yeh Maw-Lin	Male	1991.10.28	5,625,844	9.92%	1,403,337	2.47%	None	None	Bachelor's degree in telecommunication, National Chiao Tung University Ph.D. in electrical engineering, The University of Notre Dame Senior manager, NYNEX	Director, Chongqing Loop Technology Co., Ltd. Director, Tianjin Loop Technology Co., Ltd.	None	None	None	Note 1
Vice President, Sales & Marketing Department	Republic of China	Ceng Qing-Lin	Male	2006.08.07	1,938	0.00%	None	None	None	None	Master's degree in physics, Fu Jen Catholic University President, SDO Communications Corp.	None	None	None	None	-
Vice President, Engineering Department	Republic of China	Liu Dong-Jie	Male	2005.02.14	1,032	0.00%	None	None	None	None	Master's degree in electrical machinery, University of Southern California Assistant manager, Syncom Networks Inc.	Supervisor, Tianjin Loop Electron Technology Co., Ltd.	None	None	None	-
Director of the Finance and Accounting Department and Chief of corporate governance	Republic of China	Chang Xiao-Ling	Female	2021.03.25 2025.11.12	149	0.00%	None	None	None	None	Bachelor's degree in accounting, Fu Jen Catholic University Chief accountant, Taiwan Mobile Co., Ltd. Financial accounting	None	None	None	None	-
Vice President, Engineering Department	Republic of China	Chang Jun-Sheng	Male	2025.02.12	292,324	0.52%	None	None	None	None	Bachelor's degree in electrical engineering from Chiao Tung University Vice President of Research and Development, Loop Telecommunication International, Inc.	None	None	None	None	-
Vice President, Engineering Department	Republic of China	Wang Chi-Cheng	Male	2025.02.12	113,000	0.20%	23,145	0.04%	None	None	Master's degree in electrical engineering, Sun Yat-sen University Vice President of Research and Development, Loop Telecommunication International, Inc.	None	None	None	None	-

are not concurrently employees or managers) shall be specified.

The Chairman is concurrently the President of the Company to improve the operating efficiency and decision-making enforcement. To reinforce the independence of the Board, the Company intends to plan for improving the Board's functions and enhancing the supervisory functions in the future. Substantial measures are as follows:

(1) The current Independent Directors possess expertise in finance and accounting and the communication industry field and are able to exert their duties of supervision.

(2) Independent Directors may have comprehensive discussions at different functional committee meetings and provide professional recommendations to the Board for reference to implement the specifications of corporate governance.

(3) Over half of the Board members are not concurrently the Company's employees or managers.

(3) Remunerations of the Directors, Supervisors, President, and Vice Presidents

A. Remunerations of the Directors
December 31, 2025 Unit: (In Thousands of New Taiwan Dollars)

Title	Name	Directors' remuneration	Total remuneration (A+B+C+D) as a % of net profit after tax	Remuneration for concurrent duty as an employee	Total Remuneration (A+B+C+D+E+F+G) as a % of the Net Income	Remuneration received from an investee other than a subsidiary or from the parent company
Compensation (A)	Disability retirement benefits (B)	Directors' compensation (C) (Note 1)	Fees for professional practice (D)	Salary, bonus, and special reimbursement (E)	Disability retirement benefits (F)	Employee's compensation (G) (Note 1)
The Company	All companies within the financial statements	The Company	All companies within the financial statements	The Company	All companies within the financial statements	The Company
Chairman and President	Yeh Maw-Lin	0	0	0	0	1,419
Director	Wu Ming-Ze (Note 3)	0	0	0	0	841
Director	Chen Hua-Ling	0	0	0	0	1,021
Director	Chiu Dong-Sheng	0	0	0	0	1,004
Director	Fan Zheng-Chun (Note 2)	0	0	0	0	826
Independent director	Wu Yu-Wen (Note 4)	50	50	0	0	0
Independent director	Jiang Min-Shiung	150	150	0	0	0
Independent director	Chang Guo-Hua	150	150	0	0	0
Independent director	Ko Shu-Mei	150	150	0	0	0
Independent director	Huang Yun-Ming (Note 2)	100	100	0	0	0

Please describe the policy, system, standards, and structure of the remuneration of Independent Directors and describe the linkage of duties and risks assumed, time invested, and other factors to the amount of remuneration: The Company refers to the results of Directors' performance evaluation for the remuneration of Independent Directors. In addition, according to Article 31 of the Articles of Incorporation, to provide incentives to Directors for their active participation in the Company's operations, the Board is authorized to determine the remuneration of Independent Directors based on their level of participation and the value of contributions with reference to domestic and foreign standards within the industry.
Except for the disclosures in the table above, compensation received by Directors of the Company by providing services (i.e., being a non-employee consultant of the parent company/all companies in the financial report/investee): None.

Note 1: The Company recorded earnings after tax in 2025; the proposal for earning distribution is to be resolved at the shareholders' meeting on June 26, 2026.

Note 2: Director Fan Zheng-Chun, independent directors Huang Yun-Ming resigned after directors re-election on June 26, 2025.

Note 3: Directors Wu Ming-Ze newly appointed after directors re-election on June 26, 2025.

Note 4: Independent directors Wu Yu-Wen, newly appointed after directors re-election on June 26, 2025.

B. Remunerations of the President and Vice Presidents

December 31, 2025 Unit: (In Thousands of New Taiwan Dollars)

Title	Name	Salary (A)		Disability retirement benefits (B)		Bonus and allowance (C)		Employee compensation (D) (Note 1)				Total remuneration (A+B+C+D) as a % of net profit after tax		Remuneration received from an investee other than a subsidiary or from the parent company
		The Company	All companies within the financial statements	The Company	All companies within the financial statements	The Company	All companies within the financial statements	The Company		All companies within the financial statements		The Company	All companies within the financial statements
								Amount in cash	Amount in shares	Amount in cash	Amount in shares
Chairman and President	Yeh Maw-Lin	6,594	6,594	0	0	1,688	1,688	1,917	0	1,917	0	10,199 5.21%	10,199 5.21%	None
Vice president	Liu Dong-Jie	2,485	2,485	0	0	487	487	324	0	324	0	3,296 1.69%	3,296 1.69%	None
Vice president	Ceng Qing-Lin	2,478	2,478	0	0	1,540	1,540	484	0	484	0	4,502 2.30%	4,502 2.30%	None
Vice president	Wang Chi-Cheng	2,486	2,486	0	0	754	754	453	0	453	0	3,693 1.89%	3,693 1.89%	None
Vice president	Chang Jun-Sheng	2,475	2,475	0	0	683	683	428	0	428	0	3,586 1.83%	3,586 1.83%	None

Note 1: The Company recorded earnings after tax in 2025; the proposal for earning distribution is to be resolved at the shareholders' meeting on June 26, 2026.

C. Names of managers who distribute employee remuneration and the distribution status

December 31, 2025 Unit: (In Thousands of New Taiwan Dollars)

	Title	Name	Amount in cash (Note 1)	Total	Total as % of net profit after tax
Managerial officer	Chairman and President	Yeh Maw-Lin	1,917	1,917	0.98
	Vice president	Liu Dong-Jie	324	324	0.17
	Vice president	Ceng Qing-Lin	484	484	0.25
	Vice president	Wang Chi-Cheng	453	453	0.23
	Vice president	Chang Jun-Sheng	428	428	0.22

Note 1: The Company recorded earnings after tax in 2025; the proposal for earning distribution is to be resolved at the shareholders' meeting on June 26, 2026.

D. Remuneration of senior management with the top five remunerations of the listed company (disclosure of name and remuneration

individually)

December 31, 2025 Unit: (In Thousands of New Taiwan Dollars)

Title	Name	Salary (A)		Disability retirement benefits (B)		Bonus and allowance (C)		Employee compensation (D) (Note 1)				Total remuneration (A+B+C+D) as a % of net profit after tax		Remuneration received from an investee other than a subsidiary or from the parent company
		The Company	All companies within the financial statements	The Company	All companies within the financial statements	The Company	All companies within the financial statements	The Company		All companies within the financial statements		The Company	All companies within the financial statements
								Amount in cash	Amount in shares	Amount in cash	Amount in shares
Chairman and President	Yeh Maw-Lin	6,594	6,594	0	0	1,688	1,688	1,917	0	1,917	0	10,199 5.21%	10,199 5.21%	None
Vice president	Liu Dong-Jie	2,485	2,485	0	0	487	487	324	0	324	0	3,296 1.69%	3,296 1.69%	None
Vice president	Ceng Qing-Lin	2,478	2,478	0	0	1,540	1,540	484	0	484	0	4,502 2.30%	4,502 2.30%	None
Vice president	Wang Chi-Cheng	2,486	2,486	0	0	754	754	453	0	453	0	3,693 1.89%	3,693 1.89%	None
Vice president	Chang Jun-Sheng	2,475	2,475	0	0	683	683	428	0	428	0	3,586 1.83%	3,586 1.83%	None

Note 1: The Company recorded earnings after tax in 2025; the proposal for earning distribution is to be resolved at the shareholders' meeting on June 26, 2026.

(4) The comparison of total remuneration, as a percentage of net profit after tax, as paid by the Company and by all other companies included in the consolidated statements during the most recent two years to Directors, supervisors, President, and Vice Presidents, and description of the remuneration policies, standards, and packages, the procedures for determining remunerations, and its linkage to operating performance and future risks

	Ratio of total remuneration to net income in 2024 (%)		Ratio of total remuneration to net income in 2025 Year (%)		Description
	The Company	All companies within the financial statements	The Company	All companies within the financial statements
Director (Note)	7.59	7.59	8.15	8.15	1. If the Company has net income for the period after the final account of the year, it shall compensate cumulative losses (including the adjustments to undistributed earnings), appropriate 10% as the legal reserve according to the law; however, this shall not apply when the legal reserve has reached the paid-in capital of the Company. Then, it shall appropriate or reverse the special reserve according to the requirements under laws and regulations and of the competent authority. The Company shall appropriate no less than 10% and no more than 5% of the net profit before tax of the period before deducting remuneration of employees and remuneration of Directors as the remuneration of employees and remuneration of Directors, respectively; however, if the Company has cumulative losses (including adjusted undistributed earnings), it shall preserve the compensation amount.
2. Remuneration paid to Directors is the remuneration of Directors appropriated based on the requirements of the Articles of Incorporation. Remuneration paid to the President and Vice Presidents is distributed based on their individual performance.
President and vice president	9.16	9.16	12.92	12.92

	Ratio of total remuneration to net income in 2024 (%)		Ratio of total remuneration to net income in 2025 Year (%)		Description
	The Company	All companies within the financial statements	The Company	All companies within the financial statements
					3. According to the above, the remuneration of Directors, President, and Vice Presidents is implemented based on the existing specifications of the Company, which has no material effect on the operating risks of the Company in the future.4. Except for collecting reasonable remuneration from the Company, the Directors, President, and Vice Presidents of the Company had not collected any remuneration from other companies in the consolidated statements.5. Major changes in the remuneration of Directors were due to the increase in sales revenue and net operating profit in 2025.6. The total remuneration of the President and Vice Presidents as a percentage of net profit after tax increased, primarily due to the appointment of Vice Presidents Wang Chi-Cheng and Chang Jun-Sheng on February 12, 2025.

Note: Include President and Vice Presidents who are concurrently employees.

2. Corporate governance implementation

(1) Operation of the Board:

Five Board meetings were held in the most recent year, and the attendance/presence of Directors is as follows:

Title	Name	Number of attendance (presence)	Number of attendance by proxy	Attendance (presence) rate (%)	Remarks
Chairman	Yeh Maw-Lin	5	0	100	Re-elected and re-appointed
Director	Wu Ming-Ze	3	0	100	June 26, 2025, elect new members.
Director	Chiu Dong-Sheng	5	0	100	Re-elected and re-appointed
Director	Chen Hua-Ling	5	0	100	Re-elected and re-appointed
Director	Fan Zheng-Chun	2	0	100	June 26, 2025, Resignation
Independent director	Wu Yu-Wen	2	0	50	June 26, 2025, elect new members.
Independent director	Chang Guo-Hua	5	0	100	Re-elected and re-appointed
Independent director	Jiang Min-Shiung	5	0	100	Re-elected and re-appointed
Independent director	Ko Shu-Mei	5	0	100	Re-elected and re-appointed
Independent director	Huang Yun-Ming	2	0	100	June 26, 2025, Resignation
Other matters to be recorded:
I. In the event of any of the following in a Board of Directors meeting, the dates of meeting, session, contents of motions, the opinions of independent directors, and the Company's response to the opinions should be specified:
(I) Matters specified in Article 14-3 of the Securities and Exchange Act: None.
(II) Any objections or qualified opinions raised by an Independent Director against a Board resolution with records or written statements other than the abovementioned matters: None.
II. For the execution status regarding the recusal of Directors for proposals of conflict of interests, describe the name of the Director, the content proposals, the reason for the recusal for conflict of interests, and voting status.
Meeting title		Date	Name of Director	Motion content	Recusal for the conflicts of interest and voting status
The 4th meeting of the 13th session of the Board.		2026.03.11	Director Yeh Maw-Lin	1. Proposal for the remuneration of managers and Directors.
2. Proposal for the remuneration of other managers.	Director Yeh Maw-Lin recused himself from the venue due to the conflicts of interests and consigned the Board to elect Director Chang Guo-Hua to host the meeting for the discussion of the proposal; the proposal was approved by the remaining attending Directors with no dissenting opinion.
The same as the above

III. A company listed on TWSE or TPEx shall disclose information on the Director's self-evaluation (or peer evaluation) in terms of the cycle, period, scope, method, and content and shall complete the Questionnaire of Self-Performance Evaluation of Board Members in the table enclosed.

Evaluation periodicity	Evaluation period	Evaluation scope	Evaluation content
Once each year	2025.01.01~2025.12.31	1. Board of Directors meeting
2. Individual Directors
3. Remuneration Committee and Audit Committee	Internal self-evaluation of the Board
Self-evaluation of Director	1. Performance evaluation of the Board
2. Performance evaluation of individual Directors
3. Performance evaluation of functional committees
Performance evaluation aspects
Board of Directors meeting		Self-evaluation of Director	Functional committee
Enhancement of participation level in the Company's operations
Quality of decision-making by the Board of Directors
Composition and structure of the Board of Directors
The appointment and continued education of Directors
Internal control		Understanding of the Company's Objectives and Mission
Understanding of Directors' Responsibilities
Enhancement of participation level in the Company's operations
Internal relationship management and communication
Professional and Continuing Education of Directors
Internal control		Enhancement of participation level in the Company's operations
Understanding of Functional Committee Responsibilities
Enhance the quality of decision-making by the functional committee.
Composition and Member Appointment of the Functional Committee
Internal control

The Board's self-performance evaluation and peer review were completed in the first quarter of 2026 and reported to the Board on March 11, 2026. According to the evaluation results of various indicators, the efficiency and effectiveness of each indicator's operation received positive reviews from evaluators, indicating that the overall operation circumstances of the Board and each functional committee are favorable. StarCom Information will continue to improve based on the results of this evaluation to meet Corporate Governance requirements and enhance Corporate Governance effectiveness.

IV. Targets (i.e., establishing the Audit Committee and improving information transparency) to improve the functions of the Board and the execution evaluations for the year and the most recent year.

(I) Functional objectives of the Board

To implement corporate governance and improve the functions of the Board, the Company has established the "Regulations for the Performance Evaluation of the Board" to reinforce the functions of the Board.
The Company regularly arranges for Directors to participate in professional continuing education programs to maintain their core values, professional advantages, and abilities.

(II) Execution evaluation:

Board meetings of the Company comply with the "Regulations Governing Procedure for Board of Directors Meetings of Public Companies" to realize corporate governance.
The Company established its Remuneration Committee in 2011 and its Audit Committee in 2022 to assist the Board in executing its duties.
The Company immediately uploads material resolutions to MOPS after Board meetings to protect shareholders' interests. It has established a spokesperson system to ensure timely and adequate disclosures of material information for shareholders and stakeholders to refer to

information related to the finance and business of the Company.

The Company continues to enhance the transparency of Board information. All board meeting materials and minutes are disclosed and retained in accordance with regulations, enabling directors to access decision-making information in a timely manner.
The performance evaluation of Board members is conducted annually, with the results serving as a reference for reappointment and re-election, thereby strengthening accountability and ensuring a function-oriented Board composition.
The total number of hours of continuing education for Directors and Independent Directors in the 2025 Year is 24 hours.

(2) Operation of the Audit Committee

A. The Audit Committee of the Company was established on June 29, 2022, the information on the members is as follows:

Identity	Criteria		Professional qualifications and experience
	Name
Independent director	Wu Yu-Wen	EMBA in Accounting Management, National Taiwan University. He used to be the Director of the R&D Department at Jiti Telecom Company and is currently the Chairman of Quank Technology. Possess the working experience required for finance, accounting, business, and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0
Independent director	Jiang Min-Shiung	National Taipei Institute of Technology. Used to be the chairman of Acrosser Technology Co., Ltd. Possess the working experience required for finance, accounting, business, and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0
Independent Director	Chang Guo-Hua	Bachelor's degree from Chiao Tung University and a master's degree from Arizona State University. Used to be the co-founder of StarVox and the engineering vice president of CTO. Possess the working experience required for business and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0
Convener	Ko Shu-Mei	Department of Business Administration, Providence University. Used to be the assistant vice president of the management section of AquaOptics. Acrosser Technology Co., Ltd. Possess the working experience required for finance, accounting, and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0

B. Term of office of members of the 2nd session: The 2 meetings were held for the 1st session of the Audit Committee, the 2 meetings were held for the 2nd session of the Audit Committee in the most recent year; the attendance/presence of Independent Directors is as follows:

Title	Name	Number of attendance (B)	Number of attendance by proxy	Attendance rate (%) (B/A)	Remarks
Independent director	Wu Yu-Wen	2	0	100	June 26, 2025, elect new members.
Independent director	Chang Guo-Hua	4	0	100
Independent director	Jiang Min-Shiung	4	0	100
Independent director	Ko Shu-Mei	4	0	100
Independent director	Huang Yun-Ming	2	0	100	June 26, 2025, Resignation
Other matters to be recorded:
I. If any of the following circumstances occurs to the operations of the Audit Committee, the date of the Audit Committee meeting, session, content of proposals, opposing opinions or qualified opinions of Independent Directors, or the content of material recommendations, resolutions of the Audit Committee, and the Company's response to the opinions of the Audit Committee shall be specified.
(I) Matters specified in Article 14-5 of the Securities and Exchange Act.
(II) Any other proposals not approved by the Audit Committee that were approved by two-thirds of all Directors other than the abovementioned matters.
II. For the execution status regarding the recusal of Independent Directors for proposals of conflict of interests, describe the name of the Independent Director, the content of the proposal, reason for the recusal for conflict of interests, and voting status: None.
III. Communication between Independent Directors and the chief audit and CPAs:
(I) The internal auditor of the Company regularly communicates with Independent Directors regarding the results of the audit report and carries our internal audit reporting at the quarterly Board meetings; if there is any special circumstance, the chief auditor will immediately notify Independent Directors. The communication between Independent Directors and the chief auditor is healthy.
(II) Independent Directors carry out communications regarding the financial position in person or in writing with CPAs as they deem necessary.

C. Disclose the 2025 date of meetings, content of proposals, resolutions, and the Company's response to the Audit Committee's opinion, along with a summary of key work highlights.

Audit Committee	Content of proposals and the subsequent response	Resolution	Company's handling of the Audit Committee's opinions
2025.03.13	1. 2024 consolidated financial statements, parent company only financial statements and business report
2. Pre-approval of the provision of non-assurance services by the appointed CPAs, their firm, and affiliated entities to the company and its subsidiaries
3. The evaluation of the independence and adequacy of the Company's CPAs
4. Changes of the CPAs due to Internal operational rotation of the CPA firm	Approved by all members of the Audit Committee	Proposed to the Board and approved by receiving the consent of all attending Directors
2025.05.13	1. 2025 Q1 consolidated financial statements	Approved by all members of the Audit Committee	Proposed to the Board and approved by receiving the consent of all attending Directors
2025.08.07	1. 2025 Q2 consolidated financial statements
2. Matters related to the ex-dividend date in 2025.	Approved by all members of the Audit Committee	Proposed to the Board and approved by receiving the consent of all attending Directors
2025.11.12	1. 2025 Q3 consolidated financial statements
2. Establishing the scope of the Company's basic-level employees and incorporating it into the internal control plan.	Approved by all members of the Audit Committee	Proposed to the Board and approved by receiving the consent of all attending Directors

(3) Implementation of corporate governance and the differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor

Evaluation Items	The State of Operation			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies for TWSE/GTSM Listed Companies and the reasons therefor.
		Yes	No		Summary description
I.	Has the Company formulated and disclosed its corporate governance best practice principles in accordance with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies?	✓		The Company has established the following according to the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies": 1. Procedures for the Acquisition or Disposal of Assets. 2. Procedures for Loans to Others. 3. Regulations for Endorsements/Guarantees. 4. Rules and Procedures of Shareholders' Meeting. 5. Rules of Procedure of Board Meetings. 6. Regulations for the Election of Directors and Supervisors. 7. Code of Ethical Conduct. 8. Procedures for Handling Material Inside Information. 9. Code of Conducts or Ethics of Employees. 10. Charter of Remuneration Committee. 11. Regulations for Employees' Complaints. 12. Regulations for the Performance Evaluation of the Board. The items above have been placed under corporate governance in the investor section on the Company's website for stakeholders to refer to.	None
II.	The Company's equity structure and shareholder equity
(I)	Has the Company established internal operating procedures to handle shareholder recommendations, doubts, disputes and litigations and implemented them in accordance with the procedures?	✓		(I) The Company has established a spokesperson system according to the requirements to handle relevant matters; if there is any dispute, the Company will engage the attorney of its attorney's firm for handling.	None
(II)	Does the Company have a list of the major shareholders who actually control the Company and those who ultimately	✓		(II) The professional stock affairs agency is responsible for the list and regular declaration of relevant information according to the requirements. The Company keeps abreast of the shareholding status of Directors, managers, and shareholders with 10% of shareholding or above at all times.	None
	the Company's stock affairs and financial statements.			the Company is responsible for the list and regular declaration of relevant information according to the requirements. The Company keeps abreast of the shareholding status of Directors, managers, and shareholders with 10% of shareholding or above at all times.

Evaluation Items	The State of Operation			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies for TWSE/GTSM Listed Companies and the reasons therefor.
	Yes	No	Summary description
have control over the major shareholders?
(III) Has the Company established and implemented risk control and firewall mechanisms between affiliated companies?	✓		(III) Apart from the independent operations, if the Company has business dealings with an affiliate, it is deemed as an independent third party. Upholding the principles of fairness and reasonableness, the Company has established the Regulations for Monitoring and Control of Subsidiaries and established appropriate risk control systems and firewalls.	None
(IV) Has the Company formulated internal regulations to prevent insiders from trading securities using undisclosed information on the market?	✓		(IV) The Company has established its Procedures for Handling Material Inside Information, Code of Conduct or Ethics of Employees, Code of Ethical Conduct, and Regulations for Employees' Complaints according to laws and regulations. It provides educational training to Directors, managers, and employees upon the establishment of relevant laws and regulations and provides educational training to new Directors, managers, and employees in due course. Please refer to The Company Website.	None
III. Composition and responsibilities of the Board of Directors
(I) Is a diversification policy formulated and implemented for the composition of Board members?	✓		(I) Eight Directors (including Independent Directors) of the Company possess operating experience or academic experiences; stringent procedures are adopted for the nomination of members, with their expertise taken into consideration. The election of the Directors of the Company adheres to the diversification policy according to the "Regulations for the Election of Directors and Supervisors," including professional knowledge and skills: professional background (i.e., law, accounting, industry, finance, marketing, or technology), professional skills, and industry experiences.	None

Evaluation Items	The State of Operation			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies for TWSE/GTSM Listed Companies and the reasons therefor.
	Yes	No	Summary description
(II) In addition to the Remuneration Committee and the Audit Committee established in accordance with law, has the company voluntarily set up other functional committees?	✓		(II) The Company has established its "Remuneration Committee" and "Audit Committee," and established its duties in accordance with the spirit of the Securities and Exchange Act for operations. In the future, it will establish other functional committees according to laws and regulations and the operating scale of the Company.	None
(III) Has the Company established its Rules for Performance Evaluation of Board of Directors and the evaluation methods, conducted regular performance evaluation each year and provided the results to the Board as the reference for individual Directors' remuneration and nomination for re-appointment?	✓		(III) The Company has established Regulations for the Performance Evaluation of the Board and periodically carries out the performance evaluation each year according to the law. It has also amended the provisions of Article 31 of the Articles of Incorporation and established the Regulations for the Performance Evaluation of Directors and Supervisors and intended to periodically evaluate Board performance at the end of each year, regularly examine the efficacy of the Board, and report to the Board.	None
(IV) Has the Company regularly evaluated the independence of CPAs?	✓		(IV) The Company regularly evaluates the independence of CPAs each year and reports to the Board regarding the evaluation results. 1. The evaluation system is as follows: Regularly evaluate the independence of CPAs and obtain the Statement of Independence issued by CPAs each year. 2. The evaluation results are as follows: The Company has executed the independence and adequacy evaluation of CPAs. On March 11, 2026, The Board of Directors has approved the resolution that CPAs are not related parties of the Company and that there was no interest between them and the Company and has obtained the Statement of Independence issued by CPAs.	None

Evaluation Items	The State of Operation			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies for TWSE/GTSM Listed Companies and the reasons therefor.
	Yes	No	Summary description
IV. Has the Company allocated an appropriate number of qualified persons and appointed a chief of corporate governance in charge of corporate governance affairs (including but not limited to furnishing information required for business execution by Directors and supervisors, assisting Directors and supervisors to comply with laws, handling matters relating to Board meetings and shareholders' meetings according to laws, and preparing minutes of Board meetings and shareholders' meetings)?	✓		The Company has appointed a Chief of Corporate Governance who meets the relevant regulatory standards set by the competent authority, and is responsible for planning and executing corporate governance-related affairs.	None
V. Has the Company established communication channels with stakeholders (including but not limited to shareholders, employees, customers, and suppliers), set up a section for stakeholders on its corporate website, and responded appropriately to important corporate social responsibility issues that are of concern to stakeholders?	✓		The Company has established a spokesperson system that is dedicated to handling relevant matters. For suppliers, customers, banks, investors, and other stakeholders, the Company has established appropriate communication channels and set up a stakeholder section on its website.	None

Evaluation Items	The State of Operation			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies for TWSE/GTSM Listed Companies and the reasons therefor.
	Yes	No	Summary description
VI. Has the company appointed a professional stock affairs agency to handle matters for shareholder meetings?	✓		The Company engages the Register & Transfer Agency Department of Yuanta Securities.	None
VII. Public disclosure of information
(I) Has the Company set up a website to disclose finance and business matters and corporate governance information?	✓		(I) The Company has established an English website and updated the latest product information and relevant information at all times, and disclosed information on finance and business regularly according to relevant requirements.	None
(II) Has the Company adopted other means of information disclosure (such as setting up an English website, appointing dedicated personnel responsible for the collection and disclosure of Company information, implementing a spokesperson system, posting the Company's earnings calls on its website, etc.)?	✓		(II) The Company has disclosed relevant finance and business information on MOPS regularly or from time to time according to the requirements of the TWSE, established an English website that discloses the latest product information, and established and implemented a spokesperson system that is responsible for providing services to investors.	None
(III) Has the Company published and declared its annual financial statements within two months from the end of the fiscal year and published and declared its Q1, Q2 and Q3 financial statements along with the monthly business performance	✓		(III) The Company declared its Q1, Q2 and Q3 financial statements, along with the monthly business performance statements, before the prescribed deadline and announced and declared its annual financial statements within 75 days from the end of the fiscal year.	None
(IV) Has the Company published and declared its annual financial statements within 30 days from the end of the fiscal year and published and declared its Q3 financial statements, along with the monthly business performance	✓		(IV) The Company declared its Q3 financial statements, along with the monthly business performance statements, before the prescribed deadline and announced the financial statements, and the monthly business performance statements, after the prescribed deadline and announced the financial statements.	None
VIII. The Company's financial statements
(I) Has the Company signed a contract with the Company for the purpose of providing and providing financial statements for the company?	✓		(I) The Company signed a contract with the Company for the purpose of providing and providing financial statements for the company, and the contract was signed with the Company for the purpose of providing and providing financial statements for the company.	None
(II) Has the Company signed a contract with the Company for the purpose of providing and providing financial statements for the company, and the contract was signed with the Company for the purpose of providing and providing financial statements for the company, and the contract was signed with the Company for the purpose of providing and providing financial statements for the company's financial statements.	✓		(II) The Company signed a contract with the Company for the purpose of providing and providing financial statements for the company, and the contract was signed with the Company for the purpose of providing and providing financial statements for the company's financial statements.	None

Evaluation Items	The State of Operation
	Yes	No	Summary description
statements before the prescribed deadline?
VIII. Does the Company have other important information that is helpful to understand its implementation of corporate governance (including but not limited to employees' interest, employee care, investor relations, supplier relations, stakeholder rights, continuing education of Directors and supervisors, implementation of risk management policies and risk measurement standards, implementation of customer policies, the Company's purchase of liability insurance for Directors and supervisors)?	✓	(I) Employees' interest: The Company has been protecting employees' legal interests according to the Labor Standard Act and treated employees with integrity.
(II) Employee care: We have established a healthy relationship of mutual trust with employees through improving the benefits system that stabilizes employees' life and a favorable educational training system. (i.e., subsidies for employees' club activities, provision of cultural, entertainment, and health inspection subsidies, and parking lot.)
(III) Investor relations: There is a spokesperson in place who is dedicated to handling shareholders' recommendations.
(IV) Supplier relations: The Company has maintained healthy relations with suppliers.
(V) Stakeholders' interest: Stakeholders may have communication with and recommendations to the Company to protect their legal interest.
(VI) Directors' continuing education: Directors of the Company possess industry and professional backgrounds and experiences in operating and management practices.
(VII) Implementation of risk management policies and risk measurement standards: The Company has established its Procedures for Handling Material Inside Information, Code of Conducts or Ethics of Employees, Code of Ethical Conduct, Regulations for Employees' Complaints, and Procedures for Protection of Personal Data; please refer to The Company Website.		None
None
None
None
None
None
None

Evaluation Items	The State of Operation
	Yes	No	Summary description
			(VIII)Implementation of customer policies: The Company maintains stable and healthy relationships with customers to create its profits.
(IX) Purchase of liability insurance for Directors of the Company: The Company has purchased liability insurance for Directors.
(X) Post-employment benefit plan: 1. Defined contribution plan: The pension system under the "Labor Pension Act" applicable to the Company is a defined contribution plan managed by the government, and the Company appropriates 6% of the monthly salaries of employees to the personal accounts with the Bureau of Labor Insurance. 2. Defined benefit plan: The pension system, organized in accordance with the "Labor Standards Act" of Taiwan, is a defined benefit plan managed by the government. The payment of an employee's retirement pension is calculated based on the service seniority and average wages during the six months before the approved retirement date. The Company appropriates 2% of the total monthly salaries of employees as the pension for the Supervisory Committee of Labor Retirement Reserve to deposit in the account with the Bank of Taiwan in the name of the Committee. At the end of the year, if it is estimated that the balance of the account is not sufficient to make the payments for laborers who are estimated to fulfill the retirement conditions in the following year, the Company will appropriate the difference in a lump sum by the end of March in the following year. The Bureau of Labor Funds, Ministry of Labor, is entrusted with the management of the account, and the Company has no right to affect the investment and management strategies.	None
None
None

| IX. Please explain improvements that have been made based on the latest results of the Corporate Governance Evaluation issued by the Taiwan Stock Exchange Corporation Governance Center, and propose matters and measures for matters not yet improved.
Matters and measures. | | | |
| --- | --- | --- | --- |
| Category of indicator | Content of indicator | Whether any improvement is made | Descriptions of matters not yet improved |
| Protect shareholders' interest and treat shareholders fairly | Has the Company reported the remuneration collected by Directors at the annual shareholders' meeting (including the remuneration policy, individual remuneration content, and amount)? | No | The Company will decide in accordance with relevant specifications based on the operating status of the Company. |
| | Does the company establish written regulations for financial transactions between related parties? The content should include management procedures for transactions such as purchases, sales of goods, acquisition, or disposal of assets, and significant transactions should be approved by the Board of Directors and agreed upon by the shareholders' meeting or reported? | No | The Company will decide in accordance with relevant specifications based on the operating status of the Company. |
| | Has the company had its Chairman, over half of the Directors, and the convener of the Audit Committee personally attend the shareholders' meeting and disclose the list of attendees in the meeting minutes? | No | The company's Chairman personally attends the shareholders' meeting and is disclosed in the meeting minutes in accordance with regulations. The convener of the Audit Committee has also personally attended in past terms; however, the meeting minutes previously only recorded the presence of the Chairman and did not separately disclose the list of other attendees. Regarding the Directors' attendance, since current regulations do not mandate that all Directors personally attend the shareholders' meetings, their attendance is arranged according to each Director's schedule. |
| | Has the Company developed specific measures to enhance corporate value, reported them to the Board of Directors, and disclosed the relevant information on the MOPS "Corporate Value Enhancement Plan" section? | No | The Company will decide in accordance with relevant specifications based on the operating status of the Company. |
| | Has the Company convened its annual shareholders' meeting by the end of May? | No | The Company will decide in accordance with relevant specifications based on the operating status of the Company. |
| | Has the Company uploaded both Chinese and English meeting handbook and supplementary information for the shareholders' meeting 30 days before the annual shareholders' meeting, and uploaded both Chinese and English annual report 18 days before the annual shareholders' meeting? | No | The reporting operations for documents related to the Shareholders' meeting are conducted in accordance with the competent authority's regulations and the schedule set out in the "Checklist of Required Actions," and are in compliance with legal requirements. In consideration of the completeness of document preparation and the quality of information disclosure, the current process is executed according to established procedures. |

	Has the Company established and disclosed the internal specifications on its website regarding the prohibition of trading securities by Directors, employees, or other insiders by using information undisclosed to the market that includes (but is not limited to) the prohibition of trading shares by Directors during the lock-up period 30 days and 15 days before the announcement of the financial statements and quarterly financial statements and specify the implementation status?	No	The Company has established relevant management regulations to prevent insiders from trading securities using undisclosed information and continuously promotes regulations such as the prohibition of trading stocks during the lock-up period to insiders via the email system every month to implement the implementation status. However, the relevant specifications and implementation status have not yet been disclosed on the company's website.
	Does the company's shareholders' meeting adopt live online broadcasting, or upload uninterrupted audio and video recordings of the entire meeting after the shareholders' meeting?	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
Strengthen the Board's structure and operation:	Are the Chairman and President or a position of the same level (top-level manager) the same person, or a spouse or a relative within the first degree of kinship?	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
	Has the Company established the succession plan for Board members and the important management and disclosed the operations on its website or in the annual report?	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
	Has the Company disclosed the qualification and experience of members of the Audit Committee, the annual working highlight, and operating status?	Yes	The Company has established the Audit Committee according to the law; for the qualification and experience of members of the Audit Committee, the annual working highlight, and operating status, please refer to the corporate governance implementation in the annual report.
	Has the Company established a Nomination Committee, Risk Management Committee, Sustainable Development Committee, or other functional committees not specified by the law with a number of members no less than three persons, over half of the members being Independent Directors, and one member or above possessing the professional ability required by the committee, and disclosed the composition, duties, and operating status?	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
Strengthen the Board's structure and operation:	Has the Company disclosed the separate communication status (i.e., communication methods for the financial statements and the finance and business status of the Company, matters, and results) between Independent Directors with the chief auditor and CPAs on its website?	Yes	Execute according to relevant specifications.
	Has the Board of the Company regularly (at least once a year) evaluated the independence and qualifications of CPAs according to Audit Quality Indicators (AQIs) and duly disclosed the evaluation procedures in its annual report?	Yes	Execute according to relevant specifications.
	Does the company have a functional committee at the level of the audit committee or board of directors (such as a risk management committee) to oversee risk management, and does it establish risk management policies and procedures approved by the board of directors, disclose the	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.

	organizational structure of risk management, risk management procedures, and their operation, and report to the board of directors at least once a year?
	Has the Regulations for the Performance Evaluation of the Board formulated by the Company been approved by the Board and stated that it shall execute an external evaluation at least every three years? Has the Company executed the evaluations in the year under evaluation or the past two years and disclosed the implementation status and evaluation results on its website or in the annual report?	Yes	The Company has established Regulations for the Performance Evaluation of Directors and Supervisors and intends to periodically evaluate Board performance at the end of each year, regularly examine the efficacy of the Board, and report to the Board.
	Have Independent Directors of the Company completed the continuing education based on the number of hours specified in the "Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies"?	No	The continuing education of the Company's Independent Directors is conducted in accordance with the Corporate Governance promotion mechanism of the competent authority, and they have all completed the basic requirement of annual number of hours of continuing education. Directors are encouraged to independently plan their continuing education content and hours based on their professional backgrounds and job requirements.
	Has the Company established an intellectual property management plan that is linked to the operating objectives, disclosed the implementation status on its website or in the annual report, and reported to the Board at least once a year?	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
Improve information transparency	Has the Company voluntarily disclosed the individual remuneration of Directors and supervisors in its annual report?	Yes	The Company has disclosed the individual remuneration of Directors according to relevant specifications.
	Has the Company disclosed the linkage between the performance evaluation and remuneration of Directors and managers in its annual report?	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
	Do the Company's Chinese and English websites disclose the List of major shareholder, and information related to finance, business, and corporate governance?	Yes	Execute according to relevant specifications.
	Has the Company held (either by invitation or voluntarily) at least two investor conferences, disclosed complete video links for at least two of the meetings, and ensured that the interval between the first and last investor conference in the evaluation year was more than three months?	No	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
	Has the Company voluntarily disclosed the individual remuneration of the President and Vice Presidents in its annual report?	Yes	The Company has disclosed the individual remuneration of the President and Vice Presidents in its annual report according to relevant specifications.
Promote sustainable development	Has the Company established a dedicated (concurrent) department for sustainable development to carry out risks assessments for environmental, social, or corporate governance issues related to the Company's operations	Yes	In 2024, the Company established a cross-departmental Sustainable Development Committee. Under the committee, execution teams were formed based on functional responsibilities to identify ESG material

	based on the principle of materiality and establish relevant risk management policies or strategies with the Board monitoring the promoting status of sustainable development, and disclosed them on its website and in the annual report?		topics related to the Company's operations, formulate management strategies and objectives, and prepare the annual sustainability report. The Company will decide in accordance with relevant specifications based on the operating status of the Company.
Promote sustainable development	Has the Company established a dedicated (concurrent) department for ethical corporate management to be responsible for the formulation and supervision of ethical corporate management policies and preventive plans? Has the Company described the operation and implementation status of the department established on its website or in the annual report and reported to the Board at least once a year?	No	The Company's "Ethical Corporate Management Best Practice Principles" have been approved by the Board and the shareholders' meeting, and internal employee training is conducted by the human resources unit. The Company will decide in accordance with relevant specifications based on the operating status of the Company.
	Does the Company's sustainability report refer to the SASB standards for disclosing relevant ESG information?	No	The Company's Sustainability Report is primarily prepared and disclosed in accordance with the GRI standards. Considering that the SASB standards are an internationally voluntary reference framework, the Company has not yet incorporated the corresponding disclosures of these standards.
	Has the Sustainability Report prepared by the Company been verified by a third-party certifying institution?	No	Due to the Company's relatively small scale, third-party assurance or verification of the sustainability report has not yet been planned. However, the Company has scheduled greenhouse gas verification to be conducted in 2028.
	Has the Company established policies and substantial management plans to protect human rights with reference to the International Bill of Human Rights and disclosed policies and implementation status on its website or in the annual report?	No	The Company will decide in accordance with relevant specifications based on the actual needs of the Company.
	Promote sustainable development Has the Company uploaded the English Sustainability Report on MOPS and its website?	No	The Company's scale is relatively small, and the foreign investment ratio is relatively low, and the Company will make additions based on the circumstances in the future.
	Has the Company disclosed various employee benefit measures, retirement systems, and the implementation status on its website and in the annual report?	Yes	The Company's website, annual report, and sustainability report have all disclosed the employee benefit measures, retirement systems, and implementation status.
	Has the Company disclosed the annual water consumption and the total weight of wastes in the past two years?	Yes	The Company will disclose relevant information in this Annual Report and Sustainability Report.
	Has the Company established management policies for reducing water consumption, or other waste management (including the reduction objective, promoting measures, and the achievement)?	Yes	The Company will disclose relevant information in this Annual Report and Sustainability Report.
	Has the Company disclosed the identification of stakeholders, issues of concern, communication channels, and response methods on its website or in the annual report?	Yes	The Company will disclose relevant information in the Sustainability Report.

	Does the company's website or annual report disclose the ethical corporate management policy approved by the board of directors, which clearly specifies specific practices and preventive measures against dishonest conduct, and explains the implementation status?	Yes	The Company's "Ethical Corporate Management Best Practice Principles" have been approved by the Board and the shareholders' meeting and uploaded to the company's website, with internal employee training conducted regularly by the human resources unit.
	Has the Company established and disclosed the details of the whistleblowing system for illegal (including corruption) and unethical conduct of internal and external personnel on its website?	Yes	The Company will disclose relevant information in the Sustainability Report.
	Has the Company disclosed the supplier management policies it formulated that require suppliers to comply with relevant specifications on environmental protection, occupational safety and health, or labor rights issues on its website or in the annual report or the Sustainability Report and described the implementation status?	Yes	The Company will disclose relevant information in the Sustainability Report.
	Has the Company disclosed the governing status, strategies, risk management, indicators, objectives, and relevant information regarding risks and opportunities related to climate based on the TCFD structure?	Yes	The Company will disclose relevant information in the Sustainability Report.
	Does the company invest in environmentally sustainable machinery and equipment related to energy conservation or green energy, or invest in domestic green energy industries (such as renewable energy power plants), or issue or invest its funds in sustainable development financial products with substantive benefits in green or social impact investment projects, and disclose its investment situation and specific benefits?	No	The scale of the Company is relatively small, and the Company will make additions based on the circumstances in the future.
Promote sustainable development	Has the company allocated resources to support domestic cultural development, and disclosed its methods of support and outcomes on the Company's website, annual report, or sustainability report?	No	The scale of the Company is relatively small, and the Company will make additions based on the circumstances in the future.
	Has the Company disclosed the policy on the linkage between the senior managerial officer's remuneration and ESG-related performance evaluations?	Yes	The Company will disclose relevant information in the Sustainability Report.
	Has the Sustainability Report prepared by the Company been submitted for approval by the Board of Directors?	No	The Sustainability Report has not yet been included in the Board of Directors' review procedures. In each quarterly Board of Directors meeting, the President reports on the progress of sustainability-related initiatives and important issues, allowing the Board to stay informed on the progress of sustainable development.
	Has the Company disclosed the annual Scope 1 and Scope 2 GHGs emissions for the past two years?	Yes	The Company will disclose relevant information in this Annual Report and Sustainability Report.
	Has the Company disclosed the Category and annual Scope 3 GHGs emissions for the past year?	No	The Company is defined by the FSC as a third-phase disclosure company, and the inventory scope does not yet include Scope 3.

Has the Company established an energy management plan and disclosed the implementation status on its website, annual report, or sustainability report?	No	The scale of the Company is relatively small, and the Company will make additions based on the circumstances in the future.
Has the Company implemented internal carbon pricing to estimate the impact of climate change on its finance and business?	No	The scale of the Company is relatively small, and the Company will make additions based on the circumstances in the future.
Does the Company regularly conduct employee satisfaction surveys and disclose the implementation status and improvement plans?	No	The scale of the Company is relatively small, and the Company will make additions based on the circumstances in the future.
Has the Company established a personal data protection policy and disclosed the content and its implementation status?	Yes	The Company has established Procedures for Protection of Personal Data; please refer to The Company Website.
Has the Company formulated relevant policies to protect the interests of consumers or customers and complaint procedures regarding customer health and safety, marketing, or labeling of products and services issues?	Yes	The Company has established a dedicated customer service platform as a channel to protect customer rights and handle complaints. Customers can use their dedicated account on the platform to make inquiries about product operation, request technical support, report system abnormalities, and suggest function improvements. The platform has management mechanisms such as case registration, classification assignment, progress tracking, and case closure feedback to ensure timely and effective issue resolution. Remote connection support from engineers is provided when necessary to continuously enhance Quality of Service (QoS) and customer satisfaction.
Has the Company established a Sustainable Development Committee at the Board level with a number of members no less than three persons, whose members should possess professional knowledge and capability related to corporate sustainability, and at least one Director involved in supervision, and disclosed the composition, duties, and operating status?	Yes	In 2024, the Company established a cross-departmental ESG Sustainable Development Committee, with the Chairman representing the Board of Directors as the chairman of the Sustainable Development Committee. Under the committee, execution teams were formed based on functional responsibilities to identify ESG material topics related to the Company's operations, formulate management strategies and objectives, and prepare the annual sustainability report. The Company will decide in accordance with relevant specifications based on the operating status of the Company.

(4) If the Company has established its Remuneration Committee, the composition, responsibilities, and operations of the Committee shall be disclosed:

A. Information on members of the Remuneration Committee

March 31, 2026

Identity	Name	Professional qualifications and experience	Independence
Independent director	Wu Yu-Wen	Ph.D. in differential dynamical, University of Minnesota. Used to be a consultant for AT&T and a chief engineer for Quintum. Possess the working experience required for business and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0
Independent director	Jiang Min-Shiung	National Taipei Institute of Technology. Used to be the chairman of Acrosser Technology Co., Ltd. Possess the working experience required for finance, accounting, and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0
Convener	Chang Guo-Hua	Bachelor's degree from Chiao Tung University and a master's degree from Arizona State University. Used to be the co-founder of StarVox and the engineering vice president of CTO. Possess the working experience required for business and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0
Independent director	Ko Shu-Mei	Department of Business Administration, Providence University. Used to be the assistant vice president of the management section of AquaOptics. Acrosser Technology Co., Ltd. Possess the working experience required for finance, accounting, and corporate operations.	1. The person, his spouse, or his second-degree relatives do not serve as directors, supervisors or employees of the Company.
2. No share of the Company is held by the person, spouse, or relatives within the second degree of kinship (or in others' name).
3. Not a director, supervisor, or employee of a company which has a specific relationship with the Company.
4. No compensation is received for providing business, legal, financial, accounting, and other services to the Company or its affiliates for the most recent two years.	0

B. Information on the operation of the Remuneration Committee

a. The Company's Remuneration Committee comprises four members.
b. Term of office of members of the 6th session: The term of office from June 26, 2025 to June 25, 2028. Two meetings were held for the Remuneration Committee in the most recent year, and the attendance is as follows:

Title	Name	Number of attendance (B)	Number of attendance by proxy	Attendance rate (%) (B/A)	Remarks
Convener	Ko Shu-Mei	2	0	100
Committee member	Jiang Min-Shiung	2	0	100
Committee member	Chang Guo-Hua	2	0	100
Committee member	Wu Yu-Wen	1	0	100	August 7, 2025, elect new members.
Committee member	Huang Yun-Ming	1	0	100	June 26, 2025, Resignation
Other matters to be recorded:
I. If the Board does not adopt or amend the recommendations from the Remuneration Committee, the date, session, content of proposals, resolution of the Board, and the Company's response to the recommendations of the Remuneration Committee shall be specified (if the remuneration approved by the Board is more favorable than the recommendation of the Remuneration Committee, the differences and reasons shall be specified): None.
II. For any objections or qualified opinions raised by a member of the Remuneration Committee against a resolution with records or written statements, the date of the Remuneration Committee meeting, session, content of proposals, opinions of all members, and the Company's response to the opinions of members shall be described: None.

C. Disclose the 2025 date of the Remuneration Committee meetings, motion content, resolution, and the Company's handling of the remuneration committee's opinions, along with a summary of key work highlights.

Remuneration Committee	Content of proposals and the subsequent response	Resolution
2025.03.13	1. Review and discussion of the proposal for the distribution of employee remuneration and Director remuneration in 2024
2. Proposal for the remuneration of managers and Directors.
3. The proposal for the distribution of remuneration for other managers	Approved by all members of the Remuneration Committee	Proposed to the Board and approved by receiving the consent of all attending Directors
2025.11.12	1. Review and discussion of the proposal for the distribution of employee remuneration and Director remuneration in 2024
2. The proposal for the distribution of Directors' remuneration
3. The proposal for the distribution of remuneration for the managers.
4. The proposal for the distribution of remuneration for other managers
5. Proposal for the working plan of the Committee in 2026.	Approved by all members of the Remuneration Committee	Proposed to the Board and approved by receiving the consent of all attending Directors

(5) Implementation of promoting sustainable development and the differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor

Implementation Items	Implementation Status
	Yes	No	Summary description
I. Has the Company established a governance framework for promoting sustainable development, and established an exclusively (or concurrently) dedicated unit to be in charge of promoting sustainable development?	✓		In 2024, the Company established a cross-departmental Sustainable Development Committee. Under the committee, execution teams were formed based on functional responsibilities to identify ESG material topics related to the Company’s operations, formulate management strategies and objectives, and prepare the annual sustainability report. The Company will decide in accordance with relevant specifications based on the operating status of the Company.
The Board of Directors' supervision of sustainable development is as follows:		None
			Date	ESG Motion Discussion
			2025/3/13	Board of Directors Report: Progress on Greenhouse Gas Inventory and Verification Planning
			2025/8/7	Board of Directors Report: Progress on Greenhouse Gas Inventory and Verification Planning
			2025/11/12	Board of Directors Report: Progress on Greenhouse Gas Inventory and Verification Planning
II. Has the Company, in accordance with the materiality principle, conducted risk assessments on environmental, social, and corporate governance (ESG) issues related to its operations,	✓		The Company has referred to the GRI Standards and industry-relevant topics to collect and screen a list of sustainability topics related to its operations. Items identified as of moderate to high concern to stakeholders have been designated as material topics for 2025, including one environmental topic, one social topic, and five governance topics.
Relevant management policies have been established, with the evaluation boundary covering the Taipei, Hsinchu, and Tainan offices.		None

Implementation Items	Implementation Status
	Yes	No	Summary description
and established corresponding risk management policies or strategies?			ESG Aspect	Material Topic	Description
			Governance	Financial Stability	The Company’s financial statements are audited by a CPA firm and financial and business information is updated and disclosed in a timely manner. In line with industry development and customer needs, the Company develops and refines its core technologies and products to ensure future growth momentum and profitability.
				Corporate Governance	The highest governance body effectively fulfills its supervisory and management functions, with regular meetings of the Board of Directors, Audit Committee, and Remuneration Committee.
				Business Ethics	An "Ethical Corporate Management Best Practice Principles" has been established, and regular internal audits are conducted to ensure compliance with laws and regulations.
				Regulatory Compliance	The Company actively monitors relevant policies and regulations, and to date, has not been subject to any significant monetary fines or other non-monetary sanctions.
				Information Security	Certified under ISO 27001 for information security. A 24/7 monitoring system is in place to detect abnormal activities, and regular employee training and education on cybersecurity are provided.
			Environmental	Energy and Resource Management	Certified under ISO 14001 for environmental management. Promotes energy conservation, carbon reduction, water resource conservation, and waste recycling, along with related training programs.
			Social	Employee Benefits	Comprehensive leave and retirement systems are in place; the Company has established an employee stock ownership trust and an employee benefits committee.

Implementation Items	Implementation Status			The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
III. Environmental Issues
(I) Has the Company set up an appropriate environmental management system based on the characteristics of its industry?	☑		The Company has established the ISO14001 environmental management system. Measurement of operating environments: The Company implements measures for factors in operating environments every six months to ensure the health of employees. The measurement items include noise, air quality, lead operations, and illuminance. All measurement items shall comply with the requirements under laws and regulations, or improvement measures shall be adopted. The Company has established emergency management measures: The Company has established emergency management measures to ensure the reduction of the possibility of impacts and hazards on the environment and safety upon the occurrence of emergencies and the immediate response upon the occurrence of any disaster. The Company also cooperates with the fire control exercise once every six months of the building and appoints personnel to join the program according to the management committee of the building.	None
(II) Is the Company committed to improving energy efficiency and to the use of renewable materials with low environmental impact?	☑		During the product design stage, emphasis is placed on energy efficiency, ease of disassembly, maintenance, and parts replacement, as well as the use of recycled cardboard boxes.	None
(III) Has the Company evaluated the potential risks and opportunities of climate change to the Company at present and in the future and	☑		The Company is a network equipment solution supplier, and major potential risks, including the increase in raw material costs and exchange rate fluctuations, may cause impacts and affect its operations. However, in terms of recycling efficacy, the Company encourages employees to recycle waste paper for reuse, save electricity, and reduce water consumption to minimize operating costs.	None

Implementation Items	Implementation Status	The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
Yes	No	Summary description
adopted countermeasures for related issues?
(IV) Has the Company made statistics on GHGs emissions, water consumption, and the total weight of wastes for the past two years and formulated policies for GHGs emissions reduction, water consumption reduction, or other waste management?	✓
1. Status of greenhouse gas inventoryThe scope of the 2024 inventory only covered the parent company of Loop Telecommunication International, Inc. (Hsinchu, Taipei, and Tainan offices); the 2025 Year includes subsidiaries.
	2025	2024
Scope 1 (metric tons CO2e/year)	54.97	6.08%
Scope 2 (metric tons CO2e/year)	849.17	93.92%
Total Emissions	904.14	100%
2. Water usage situationThe scope of the 2024 inventory only covered the parent company of Loop Telecommunication International, Inc. (Hsinchu, Taipei, and Tainan offices); the 2025 Year includes subsidiaries.
	2025	2024
Water consumption (metric tons)	9,047.5	8,335.3
3. Waste statisticsThe scope only covers the parent company of Loop Telecommunication International, Inc. (Hsinchu, Taipei, and Tainan offices); after evaluation, the subsidiaries primarily engage in research and development, resulting in a relatively limited amount of waste, which is not considered significant for the overall impact. Therefore, they have not yet been included in the statistical scope.

Implementation Items	Implementation Status	The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
Yes	No	Summary description

	2025	2024
Non-hazardous waste (metric tons)	3.6	3.6
Hazardous waste (metric tons)	1.09	0.0
Total weight (hazardous + non-hazardous)	4.69	3.6
IV. Social Issues
(I) Has the Company formulated relevant management policies and procedures in accordance with relevant regulations as well as the International Bill of Human Rights?
(II) Has the Company established reasonable employee welfare measures (including remuneration, vacations, and other benefits), and appropriately reflect operational performance or results in employee remuneration?	☑	☐

The Company has established relevant employee welfare measures in accordance with the Labor Standards Act, and conducts regular annual assessments based on the Company's annual operational performance, issuing project and performance bonuses annually to share the results of success with employees. | None |

Implementation Items	Implementation Status			The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
(III) Does the Company provides employees with a safe and healthy working environment and regularly organize safety and health education for employees?	☑		The Company has established an "Occupational Safety and Health Management Committee" and formulated the "Occupational Safety and Health Regulations," clearly outlining its commitments and objectives. These regulations cover risk assessment, incident management, health services, and continuous improvement, with regular internal and external audits and evaluations to ensure the system operates effectively. The Company provides 3 hours of occupational safety and health education and training for new employees, For production line personnel (those who manufacture, handle, or use hazardous chemicals), an additional 3 hours of training on hazardous chemical labeling and hazard communication regulations are provided. And conducts training every three years for current employees. In addition, the Company's Information Fire Safety Management Committee holds one fire safety review and conducts two fire drills annually. In 2025 Year, there were zero workplace accidents, zero occupational injuries, and zero occupational diseases. The Company employs one occupational safety and health administrator with a Class B certification and one operations supervisor with a Class A certification, both responsible for managing occupational safety and health-related affairs and operations.	None
(IV) Has the Company established an effective career development training program for employees?	☑		The Company has a comprehensive employee training plan and organizes diverse educational training based on different duties, expertise, and requirements. Meanwhile, it assists in the functional development of employees, improves their professional literacy, and provides secondary specialty development plans in due course to enrich employees' careers.	None

Implementation Items	Implementation Status	The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
Yes	No	Summary description

	Course	Total participants
Internal	New employee Training	29 participants
Technology Summit	106 participants	238 hours
Internal audit education and training	13 participants	13 hours
Information security promotion (including social engineering drills)	209 participants	209 hours
Electrostatic Protection Awareness	72 participants	72 hours
ESG / ISO 14001 environmental management promotion	98 participants	98 hours
Promotion of the Legal System for Ethical Corporate Management Policy and Conduct Norms	101 participants	101 hours
Foreign language courses	192 participants	192 hours
External	Finance & Accounting / Audit / Corporate Governance	29 participants
Occupational Safety and Health	2 participants	9 hours
Information Security	2 participants	43.5 hours
Others	5 participants	22 hours
Employee internal and external training in 2025:	858 participants	1,177 hours

Implementation Items	Implementation Status			The differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary description
(V) Has the Company complied with relevant regulations and international standards with regard to customer health and safety, customer privacy, marketing, and labeling of products and services, and established relevant policies to protect the interests of consumers or customers and complaint procedures?	☑		The demand for accessing and reviewing customer-related documents and data must follow StarLink's relevant procedures for permission process application and include a permission review mechanism to ensure that applicants meet the qualifications for access and inquiry. To achieve the protection of customer privacy and prevent the leakage or theft of commercial confidential documents.

The Company has established a dedicated customer service platform as a channel to protect customer rights and handle complaints. Customers can use their dedicated account on the platform to make inquiries about product operation, request technical support, report system abnormalities, and suggest function improvements. The platform has management mechanisms such as case registration, classification assignment, progress tracking, and case closure feedback to ensure timely and effective issue resolution. Remote connection support from engineers is provided when necessary to continuously enhance Quality of Service (QoS) and customer satisfaction. | None |
| (VI) Has the Company formulated supplier management policies that require suppliers to comply with relevant specifications on environmental protection, occupational safety and health, or labor rights issues? | ☑ | | The Company has signed a "Supplier Code of Conduct and Commitment" with suppliers, requiring them to comply with relevant laws and international standards in aspects such as labor and human rights, health and safety, environmental protection, and ethical norms, to fulfill sustainable responsibilities. | None |
| V. Has the Company referred to international reporting | | ☑ | In 2025, the Company established a cross-departmental Sustainable Development Committee. Under the committee, execution teams were formed based on functional | The Company will obtain assurance or |

Implementation Items	Implementation Status
	Yes	No	Summary description
standards or guidelines in its preparation of the sustainability report and other reports which disclose the Company's non-financial information? Has the Company obtained the assurance or certification of a certifying institution for the reports above?			responsibilities to identify ESG material topics related to the Company’s operations, formulate management strategies and objectives, and prepare the annual sustainability report.
Due to the Company's relatively small scale, third-party assurance or verification of the sustainability report has not yet been planned. However, the Company has scheduled greenhouse gas verification to be conducted in 2028.	certification from a third-party certifying institution for the non-financial information in the Sustainability Report in accordance with the reference guidelines and relevant regulations issued by the competent authority.
VI. If the Company has adopted its own Sustainable Development Best Practice Principles based on the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, please describe any differences from the principles in the Company's operations:
The Company has always been complying with laws and regulations and spared no effort in environmental protection and public safety; however, it has not established the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies"; it will establish such principles as soon as possible according to laws and regulations.
VII. Other important information to facilitate a better understanding of the Company's promotion of sustainable development:
For details, please refer to pages 53 to 64 of the handbook.

(6) Climate-Related Initiatives Implementation

Item	Implementation Status
1. Describe the supervision and governance by the board of directors and management regarding climate-related risks and opportunities.	The Company regularly reports to the board of directors and conducts quarterly supervision of greenhouse gas inventory and verification schedule planning. In June 2022, the Company appointed one full-time (or part-time) facility staff member and established the following plans:
(I) Inventory plan: October 2024
(II) Verification plan: Scheduled for October 2028
2. Describe how the identified climate risks and opportunities impact the Company’s business, strategy, and financial planning (short-, medium-, and long-term).	Please refer to the Table 1 below
3. Describe the financial impact of extreme weather events and transition actions.
4. Describe how the identification, assessment, and management of climate risks are integrated into the overall risk management framework.
5. If scenario analysis is used to assess resilience to climate change risks, describe the scenarios, parameters, assumptions, analytical factors, and key financial impacts.	The Company has not yet conducted a scenario analysis. In the future, it will evaluate the adoption of such analyses based on its specific circumstances to enhance resilience to climate-related risks.
6. If there is a transition plan for managing climate-related risks, describe the plan’s content, as well as the indicators and targets used to identify and manage physical and transition risks.	The Company has not yet formulated a transition plan for managing climate-related risks. In the future, detailed risk assessments and planning will be carried out based on the Company’s specific conditions to mitigate climate-related risks.
7. If internal carbon pricing is used as a planning tool, describe the pricing basis.	The Company does not currently use internal carbon pricing as a planning tool.
8. If climate-related targets are set, describe the activities covered, the scope of greenhouse gas emissions, the planning timeline, and annual progress; if carbon offsets or renewable energy certificates (RECs) are used to achieve these targets, provide the sources and quantities of offsets or RECs.	In response to climate change, the Company has implemented an office energy-saving plan, starting with reducing energy consumption in offices and among employees to minimize environmental impact. Future implementation of greenhouse gas inventory and verification will follow the guidelines and regulations issued by competent authorities.
9. Status of greenhouse gas inventory and assurance, as well as reduction targets, strategies, and specific action plans.	Please refer to 1-1 and 1-2 below.

1-1 Status of greenhouse gas inventory and assurance in the most recent two years.

1-1-1 Greenhouse gas inventory information

Specify the greenhouse gas emissions for the most recent two Years (metric tons CO2e), intensity (metric tons CO2e/million NTD), and the data coverage scope.
	2025		2024
Scope 1 (metric tons CO2e/year)	54.97	6.08%	57.25	7.06%
Scope 2 (metric tons CO2e/year)	849.17	93.92%	753.93	92.94%
Total Emissions	904.14	100%	811.18	100%
Revenue (Million NTD)	677.72		649.95
intensity (metric tons CO2e/million NTD)	1.33		1.25
Note 1: The scope of the 2024 inventory only covered the parent company of Loop Telecommunication International, Inc. (Hsinchu, Taipei, and Tainan offices); the 2025 Year includes subsidiaries.
Note 2: The Company is defined by the FSC as a third-phase disclosure company, and the inventory scope does not yet include Scope 3.
Note 3: The greenhouse gas emissions intensity uses "Revenue" as the denominator to calculate the measure of this intensity ratio.

1-1-2 Greenhouse gas assurance information

Description of the assurance situation for the last two years up to the publication date of the annual report, including the scope of assurance, the assurance institution, the assurance standards, and the assurance from the issuer.
As the Company’s paid-in capital is less than NT$5 billion, in accordance with FSC letter No. 11103849344, the assurance of greenhouse gas inventory shall be completed starting from 2028. The Company will continue to manage the progress of the inventory and verification in line with reference guidelines and regulations issued by the competent authority.

1-2 Reduction targets, strategies, and specific action plans for greenhouse gases.

Specify the baseline year and data for greenhouse gas reduction, reduction objectives, strategies, and specific action plans, as well as the achievement of reduction objectives.
The Company has not yet officially established the baseline year and reduction objectives for greenhouse gas reduction. Considering that the setting of reduction objectives needs to be based on comprehensive and assured greenhouse gas inventory data, the Company has planned to establish the baseline year and relevant reduction objectives after obtaining third-party assurance in 2028.

Table 1

Aspect	Issue	Impact duration	Financial impact	Impact on the Company	Response strategy	Risk level
Physical risks	Increased frequency and severity of extreme weather events (typhoons and floods)	Medium term (3-10 years)	Operating costs increased, capital expenditure increased	Supply chain disruptions, production delays, or shutdowns may impact delivery schedules and customer satisfaction; power outages and traffic congestion near the plant affect production efficiency.	1. Purchase relevant property insurance 2. Establish alternative sources of supply 3. Enhance the disaster response plan.	High
Transition risks	Rising energy prices and increased carbon costs	Medium term (3-10 years)	Operating costs increased	The rise in outsourced electricity costs will compress gross profit, increasing pressure on energy management.	1. Improving energy efficiency 2. Evaluate the integration of renewable energy 3. Continued monitoring of electricity intensity	High
Transition risks	Environmental regulations are becoming stricter.	Medium term (3-10 years)	Increased compliance costs, potential penalty risks	Failure to comply with new regulatory requirements may increase improvement expenditures or affect market access.	Continue to monitor regulatory developments and strengthen internal inspections.	Medium
Climate Opportunities	Development of low-carbon products and services	Short term (0-3 years)	Revenue increased, brand value enhanced	The shift in market demand towards low-carbon products helps enhance competitive advantage.	1. Product design incorporates energy-saving concepts. 2. Promote compliance with ISO management system standards. 3. Following the IEC 62443-4-1 development process	Medium
Climate Opportunities	Energy-saving equipment and energy management measures	Medium term (3-10 years)	Initial capital expenditure increased, long term operating costs reduced.	Reduce electricity costs and carbon emissions, enhancing operational efficiency.	The Company has allocated a budget to replace outdated equipment and track energy-saving performance.	Medium

(7) Implementation of ethical corporate management and differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor

Evaluation Items	The State of Operation			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary description
I. Formulate ethical corporate management policy and plan
(I) Does the Company have an ethical corporate management policy approved by its Board, and bylaws and publicly available documents addressing its policy and measures of ethical corporate management, and commitment regarding active implementation of such policy from the Board and the senior management?	✓		The Company has established its "Ethical Corporate Management Best Practice Principles," which was implemented after being approved by the shareholders' meeting in 2015. The Company has formulated its working rules and regulations for rewards and punishments and implements educational training for new employees.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(II) Has the Company established a risk assessment mechanism against unethical conduct, analyzed and assessed on a regular basis business activities within their business scope which are at a higher risk of being involved in unethical conduct, and established prevention programs accordingly which at least cover the prevention measures against the conducts listed in Paragraph 2, Article 7 of the Ethical Corporate	✓		The Company has established its "Ethical Corporate Management Best Practice Principles" and signed a "Supplier Code of Conduct and Commitment" with suppliers as a Plan to prevent unethical conduct.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(II) Has the Company established a policy for the use of unethical conduct, and established prevention programs accordingly which are at a higher risk of being involved in unethical conduct, and established prevention programs accordingly which are at least covered by the law?			the Company has established its "Ethical Corporate Management Best Practice Principles" and signed a "Supplier Code of Conduct and Commitment" with suppliers as a Plan to prevent unethical conduct.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
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Evaluation Items	The State of Operation			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary description
Management Best Practice Principles for TWSE/GTSM Listed Companies?
(III) Has the Company clearly set the operating procedures, behavior guidelines, and punishment and complaint system for violations in its unethical conduct prevention program, implemented it, and regularly reviewed and revised it?	☑		The Company has established the "Ethical Corporate Management Best Practice Principles," which states that persons shall not have any private business conduct with companies having dealings with the Company or accept gifts, rebates, or other illegal benefits leveraging their duties or engage in other conducts that damage the Company's interest.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
II. The implementation of ethical corporate management
(I) Does the company assess the ethics records of whom it has business relationship with and include business conduct and ethics related clauses in the business contracts?	☑		The Company has established a "Code of Integrity Management" and signed a "Supplier Code of Conduct and Commitment" with suppliers, requiring them to comply with relevant laws and international standards in aspects such as labor and human rights, health and safety, environmental protection, and ethical norms, to fulfill sustainable responsibilities and operate with integrity.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies

Evaluation Items	The State of Operation			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary description
(II) Has the Company set up a dedicated department that is subordinated to the Board to promote ethical corporate management, and does it regularly (at least once a year) report to the Board on its ethical corporate management policy and unethical conduct prevention program and monitor their implementation?		✓	The Company's "Ethical Corporate Management Best Practice Principles" have been approved by the Board and the shareholders' meeting, and internal employee training is conducted by the human resources unit.	The Company will decide in accordance with relevant specifications based on the operating status of the Company.
(III) Does the Company establish policies to prevent conflict of interests, provide appropriate communication and complaint channels and implement such policies properly?	✓		The Company has established and implemented its "Ethical Corporate Management Best Practice Principles," which mentioned the recusal of stakeholders.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(IV) Has the Company established effective accounting and internal control systems in place for the implementation of ethical corporate management? Has the internal audit department formulated relevant audit plans based on the assessment results of unethical conduct risk to perform audits on	✓		To ensure the implementation of ethical corporate management, the Company has established an effective accounting system and internal control system. In addition, our internal auditors regularly perform audits on compliance with the abovementioned system and communicate with CPAs for the performance of improvement plans.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies

Evaluation Items	The State of Operation			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary description
compliance with the unethical conduct prevention program or engage CPAs to perform such audits?
(V) Does the Company provide internal and external education and training in ethical corporate management on a regular basis?	☑		The Company holds internal ethical corporate management training at least once each year. The training hours for the 2025 Year reached 101 hours.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
III. The operation of the Company's whistleblower reporting system
(I) Does the Company establish specific whistleblowing and reward procedures, set up conveniently accessible whistleblowing channels and designate responsible individuals to handle the complaints received?	☑		The Company has established its "Regulations for Employees' Complaints"; please refer to The Company Website. The opinion or complaint of employees, after the initial circumstances were verified, will be handled according to the working rules or regulations for rewards and punishments.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(II) Has the Company established its SOP for investigating the complaints received,	☑		The "Code of Ethical Conduct" states that the Company has established relevant procedures or systems and allowed employees to	Compliant with the Ethical

Evaluation Items	The State of Operation			Differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the reasons for the differences
	Yes	No	Summary description
subsequent measures to be adopted, and the related confidentiality system after the investigation?			acknowledge the safety protection of whistleblowers without suffering from any revenge.	Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(III) Has the Company adopted proper measures to protect whistleblowers from inappropriate disposals due to whistleblowing?	☑		To avoid conflicts of interest, the company has established a reporting platform for internal and external individuals to anonymously report issues that may involve fraud or unethical conduct. We are committed to protecting whistleblowers and taking strict confidentiality measures.	Compliant with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
IV. Enhance Information Disclosure
Has the Company disclosed the content and implementation results of its Ethical Corporate Management Best Practice Principles on its website and MOPS?		☑	The Company has disclosed the content of its "Ethical Corporate Management Best Practice Principles," and the promotional achievements shall be arranged subject to the requirements under laws and regulations in due course.	Disclosures will be made based on the actual requirements in the future.
V. If the Company has adopted its own Ethical Corporate Management Best Practice Principles based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe any differences from the principles in the Company's operations:

Evaluation Items	The State of Operation
	Yes	No	Summary description
The Company has established its "Ethical Corporate Management Best Practice Principles," which was submitted to and approved by the shareholders' meeting and implemented in June 2015. Disclosed as above, and there is no supplementary disclosure at present.
VI. Other important information to facilitate a better understanding of the Company's implementation of ethical corporate management (i.e., the examination and modification to the Ethical Corporate Management Best Practice Principles established by the Company):
The Company complies with the Company Act, relevant specifications of TWSE/TPEx, and relevant laws and regulations as the foundation of implementing ethical corporate management; for business dealings with external parties, it forbids any counterparty from involving in any unethical conduct.

(8) Other important information to facilitate a better understanding of the Company's implementation of corporate governance: None.

(9) Implementation of internal control system

A. The Company has established an internal control system in accordance with regulations and continues to have the internal audit unit perform audits and follow-ups based on the audit plan. The 2025 Year Internal Control System Statement can be found in the announcements on the Market Observation Post System (MOPS). (MOPS's website: https://mops.twse.com.tw/mops / Path: Market Observation Post System (MOPS) > Listed Company > Corporate Governance > Company Rules/Internal Control > Internal Control System Statement Announcement)

B. Where a CPA has been engaged to carry out a project review of the internal control system, the CPA's review report shall be disclosed: None.

(10) Material resolutions of shareholders' meetings or Board meetings during the most recent year and up to the publication date of the annual report:

A. Material resolutions of the annual shareholders' meeting and the implementation status

Time	Material resolution of the shareholders' meeting:	Implementation Status
June 26, 2025	Material resolution of the 2025 Year annual shareholders' meeting:
Report
1. The 2024 business report
2. 2024 Audit Committee's Review Report
3. The report of the distribution of remuneration of employees and remuneration of Directors and supervisors in 2024

Ratification
1. Approved the 2024 business report, Consolidated financial statements and parent company only financial statements.
2. Approved the proposal for earning distribution for 2024

Discussion
1. The amendments to the "Articles of Incorporation".

Election Items
1. Proposal for the full re-election of directors.

Other proposals
1. Proposal to lift the non-competition restrictions on newly elected directors. | Approved as a resolution. September 4, 2025 was set as the ex-dividend date, and September 26, 2025 was the cash dividends distribution date. |

B. Board of Directors meeting

Meeting date (term)	Motion content	Opinions of all Independent Directors and the Company's response to the opinions of Independent Directors
2025/03/13
(The 1st regular meeting in 2025)	1. Reviewed and discussed the 2024 consolidated financial statements and parent company only financial statements.
2. Proposal for the distribution of employee remuneration and Director remuneration in 2024.
3. Proposal for earning distribution for 2024.
4. The amendments to the "Articles of Incorporation".
5. Changes of the CPAs due to Internal operational rotation of the CPA firm
6. Proposal for the remuneration of managers and Directors.
7. Proposal for the remuneration of other managers.
8. Proposal for the performance evaluation of the Board in 2024.
9. Cumulative performance for contracting operations of derivatives (pre-sale forward exchange).
10. The Company intends to continue with two additional short-term comprehensive credit lines of NT$80 million and NT$72 million respectively from Yuanta Commercial Bank.
11. Evaluation of the effectiveness of the internal control system and the "Statement of Internal Control" in 2024.
12. Proposal for the full re-election of directors.
13. Proposal to lift the non-competition restrictions on newly elected directors.
14. The Board of Directors meeting to discuss matters pertaining to the 2025 annual shareholders' meeting.
15. Proposal for establishing matters related to the acceptance of shareholders' proposals.
16. Proposal for the Company to establish procedures for accepting the nomination of director and independent director candidates by shareholders.
17. Proposal for the 2025 business plan.	Approved by receiving the consent of all attending Directors
2025/05/13
(The 2nd regular meeting in 2025)	1. Reviewed and discussed the 2025 Q1 consolidated financial statements.
2. Cumulative performance for contracting operations of derivatives (pre-sale forward exchange).
3. Proposal regarding the nomination of director and independent director candidates and the review procedures for the nominees.	Approved by receiving the consent of all attending Directors
2025/06/26
(The 3rd regular meeting in 2025)	1. Election of the Chairman for the 13th Board of Directors of Loop telecommunication International, Inc.	All attending directors unanimously elected
Yeh Maw-Lin to serve as the Chairman of the Company and to continue serving as General Manager.
Approved by receiving the

Meeting date (term)	Motion content	Opinions of all Independent Directors and the Company's response to the opinions of Independent Directors
		consent of all attending Directors
2025/08/07
(The 4th regular meeting in 2025)	1. Reviewed and discussed the 2025 Q2 consolidated financial statements.
2. Proposal to appoint members of the 6th session of the Remuneration Committee.
3. The Company intends to apply for the rollover of the comprehensive loan limits with Yuanta Commercial Bank in the amount of NT$40 million.
4. The Company intends to apply for the rollover of the pre-purchase/pre-sale forward exchange transactions and currency exchange exposure transaction limits with Mega International Bank in the amount of US$0.15 million.
5. Cumulative performance for contracting operations of derivatives (pre-sale forward exchange).
6. The Company matters related to the ex-dividend date in 2025.	Approved by receiving the consent of all attending Directors
2025/11/12
(The 5th regular meeting in 2025)	1. Reviewed and discussed the 2025 Q3 consolidated financial statements.
2. Proposal for the distribution of employee remuneration and Director remuneration in 2024.
3. Proposal for the remuneration of managerial officers in 2024.
4. The proposal for the distribution of remuneration for other managers in 2024.
5. Proposal for the 2026 annual audit plan of the Company.
6. The scope of the Company's basic-level employees and incorporating it into the internal control plan.
7. The proposal for the new Chief of corporate governance of the Company.
8. Cumulative performance for contracting operations of derivatives (pre-sale forward exchange).
9. The Company intends to apply to Yuanta Commercial Bank for a continued short-term (secured) loan of NT$100 million, and two additional short-term comprehensive credit lines of NT$80 million and NT$72 million respectively.	Approved by receiving the consent of all attending Directors
2026/03/11
(The 1st regular meeting in 2026)	1. Reviewed and discussed the 2025 consolidated financial statements and parent company only financial statements.
2. Proposal for the distribution of employee remuneration and Director remuneration in 2025.
3. Proposal for earning distribution for 2025.
4. The proposal for revising the scope of the Company's basic-level employees and internal control plan.	Approved by receiving the consent of all attending Directors

Meeting date (term)	Motion content	Opinions of all Independent Directors and the Company's response to the opinions of Independent Directors
	5. Changes of the CPAs due to Internal operational rotation of the CPA firm
6. Pre-approval of the provision of non-assurance services by the appointed CPAs, their firm, and affiliated entities to the company and its subsidiaries.
7. The evaluation of the independence and adequacy of the Company's CPAs
8. Proposal for the remuneration of managers and Directors.
9. Proposal for the remuneration of other managers.
10. Proposal for the performance evaluation of the Board in 2025.
11. Cumulative performance for contracting operations of derivatives (pre-sale forward exchange).
12. Evaluation of the effectiveness of the internal control system and the "Statement of Internal Control" in 2025 Year.
13. The Board of Directors meeting to discuss matters pertaining to the 2026 annual shareholders' meeting.
14. Proposal for establishing matters related to the acceptance of shareholders' proposals.
15. Proposal for the 2026 business plan.
2026/05/12
(The 2nd regular meeting in 2026)	1. Reviewed and discussed the 2026 Q1 consolidated financial statements.
2. Change in Internal Audit Personnel
3. Cumulative performance for contracting operations of derivatives (pre-sale forward exchange).	Approved by receiving the consent of all attending Directors

a. Any objections or qualified opinions raised by an Independent Director against a Board resolution with records or written statements: None.
b. Implementation status of the recusal of Independent Directors for proposals in which they have interest: None.
c. Communication between the Independent Directors and chief auditor and CPAs (e.g., material matters, methods, and results of communication regarding the Company's financial and business status):

The chief auditor and CPAs have pre-meetings with particular Independent Directors to discuss the finance and business status before the regular Board meeting each quarter. There was no circumstance above in 2025 Year. The communication between Independent Directors and the chief auditor is healthy.
CPAs and Independent Directors carry our meetings in person regarding the finance and business status of the Company; Independent Directors may have communication via phone calls or e-mails with the Finance Department at all times.
CPAs of the Company report the auditing or reviewing the status of the quarterly financial statements and other communication matters requirements under

relevant laws and regulations at Board meetings each quarter; if there is any special circumstance, they will also immediately report to Board members; in 2025, there were no abovementioned special circumstances. The communication between Independent Directors and CPAs is healthy.

(11) During the most recent year and up to the publication date of the annual report, where a Director has expressed a dissenting opinion with respect to a material resolution passed by the Board, and the said dissenting opinion with records or written statements, disclose the principal content thereof: None.

3. Information on CPA fees

(1) The amount of audit fees and non-audit fees paid to CPAs and its firm and affiliates and the content of non-audit services shall be disclosed:

Information on CPA fees
(In Thousands of New Taiwan Dollars)

CPA firm	CPA name	CPA audit period	Audit fee (Note 1)	Non-audit fee					Total	Remarks
				System design	Business registration	Human resources	Others (Note 2)	Subtotal
Deloitte & Touche Taiwan	Wen Chih-Yuan and Yeh Dong-Hui	2025/1/1~2025/12/31	2,860	0	0	0	290	290	3,150

Note:
1. Audit fees refer to fees paid by the Company to CPAs related to the audit, review, re-inspection of financial statements, and the review of financial forecast.
2. Taxation certification, assurance, or other financial advisory services. s

(2) When the Company changes its CPA's firm and the audit fees paid for the year in which such change took place are lower than those for the preceding year, the amount of the audit fees before and after the change and the reasons shall be disclosed: None.

(3) When the audit fees paid for the current year are lower than those for the preceding year by 10% or more, the reduction in the amount of audit fees, reduction percentage, and reasons shall be disclosed: None.

4. Information on replacement of CPAs

(1) Former CPAs

Date of change	From 2026 Q1
Reason for the change and description	Internal operational rotation of the firm
Description of whether the Company or CPAs terminate or reject the appointment	Party Circumstances	CPAs	The Company
	Propose to terminate the appointment	Not applicable
	Reject the (continued) appointment	Not applicable
Opinions in the auditor's report issued other than unqualified opinions within the most recent two years and reason	Not applicable
Whether CPAs have any opinion different from the issuer	Yes	Accounting principles or practices
		Disclosure of financial reports
		Scope or step of audit
		Others
	None
	Description: Not applicable
Other disclosures (disclosures to be made in accordance with items 1-4 to 1-7, subparagraph 6, Article 10 of the Regulations)

(2) Successor CPAs

CPA firm	Deloitte & Touche Taiwan
CPA name	Wen Chih-Yuan
Zhong Mingyuan
Appointment date	From 2026 Q1
Consultation matters regarding the treating method or accounting principles of particular transactions and opinions that may be issued for the financial statements and results	Not applicable
Written opinion of succession CPAs for matters with opinions different from the former CPAs	Not applicable

(3) Response letter of the former CPAs regarding matters stated in item 1 and point 2, item 3, subparagraph 6, Article 10 of the Regulations:

None.

(4) The evaluation of the independence and adequacy of the Company's CPAs:

The Company conducts an annual assessment of the independence of its CPAs based on the following standards:

A. Obtain an independence declaration issued by the CPAs.
B. Establish assessment items based on the Audit Quality Indicators (AQIs) published by the competent authority and with reference to R.O.C. CPA Professional Ethics Bulletin No. 10 “Integrity, Fairness, Objectivity, and Independence” to compile the evaluation results of the CPAs’ independence and adequacy.

After thorough communication with the engaged CPAs, the Company evaluates their adequacy one by one and has not identified any circumstances that may affect the independence or adequacy of the CPAs.

The most recent assessment results were approved by the Audit Committee on March 11, 2026, and subsequently approved by the Board of Directors on the same date.

The Chairman, President, or managers in charge of financial or accounting matters of the Company working in the CPA's firm or its affiliates in the most recent year: None.
Transfer of equity and changes in equity pledges of Directors, supervisors, managers, and shareholders with a shareholding of 10% and above in the most recent year and up to the date of publication of the annual report:

(1) Information on the transfer of equity: Please refer to the announcement on the Market Observation Post System for details.

(MOPS's website: https://mops.twse.com.tw)

Path: Market Observation Post System (MOPS) > Listed Company > Shareholding Changes / Securities Issuance > Equity Transfer Information Query > Insiders' Shareholding Change After-the-Fact Report Form

(2) Information on the pledge of equity: Please refer to the announcement on the Market Observation Post System for details.

(MOPS's website: https://mopsov.twse.com.tw)

Path: Market Observation Post System (MOPS) > Listed Company > Shareholding Changes / Securities Issuance > Insiders' Pledge and Release of Pledge > Insiders' Pledge and Release Announcement

7. Information on relationships between shareholders with the top ten shareholdings

Data on shareholders with the top ten shareholdings who are related parties

Name	Shareholding		Shareholding of spouse and underage children		Total shares held in the name of others		The title or name of the top ten shareholders who are spouses or relatives within the second degree of kinship with related parties and their relationship		Remarks
	Shares (thousand shares)	Shareholding ratio	Shares (thousand shares)	Shareholding ratio	Shares (thousand shares)	Shareholding ratio	Name	Relationship
Yeh Maw-Lin	5,626	9.92%	1,403	2.47%	0	0	Chen Hua-Ling Yeh Li-Tung	Spouse Daughter	-
Chen Hua-Ling	1,403	2.47%	5,626	9.92%	0	0	Yeh Maw-Lin Yeh Li-Tung	Spouse Daughter	-
Chang Shih-Lung	987	1.74%	0	0	0	0	None	None	-
Yeh Li-Tung	942	1.66%	0	0	0	0	Yeh Maw-Lin Chen Hua-Ling	Father Mother	-
Wang Yan-zhi	755	1.33%	0	0	0	0	None	None
Standard Chartered Bank (Hong Kong) Limited – Securities Trading Investment Account, held in custody with the Business Department of Standard Chartered Bank (Taiwan) Limited	717	1.26%	0	0	0	0	None	None	-
Investment Custody Account of JPMorgan Limited, held with JPMorgan Chase Bank, N.A.	642	1.13%	0	0	0	0	None	None	-
Yuanta Commercial Bank as custodian for Loop Telecommunication International Inc. Employee Trust Fund Account	617	1.09%	0	0	0	0	None	None	-
Tsai Ho-Chin	606	1.07%	0	0	0	0	None	None	-
Hung Su-Fen	598	1.05%	0	0	0	0	None	None	-

The total number of shares held in any single investee by the Company, its Directors, managers, or any companies controlled either directly or indirectly by the Company

Consolidated shareholding ratio
Unit: Share; %

Investee (Note)	Ownership by the Company		Investments of Directors, managers and any companies controlled either directly or indirectly by the Company		Total Ownership
	Shares	Ownership	Shares	Ownership	Shares	Ownership
Tech-Plan (BVI) Ltd	4,016,000 shares	100%	0	0	4,016,000 shares	100%
Loop Telecom NA, Inc	5,000 shares	100%	0	0	5,000 shares	100%

Note: Refer to long-term investments of the Company accounted for by adopting the equity method.

(III) Capital and shares

Capital and shares

(1) Source of share capital

(In New Taiwan Dollars)

Year/ month	Issue price	Authorized capital stock		Paid-in capital		Remarks
		Shares	Amount	Shares	Amount	Source of share capital	Capital paid in by properties other than cash	Others
1995.01	NT$10	22,500,000 shares	225,000,000	12,000,000 shares	120,000,000	-	-	-
1997.09	NT$10	22,500,000 shares	225,000,000	19,500,000 shares	195,000,000	Capital increase	14,550,000	Note 1
1999.09	NT$10	36,500,000 shares	365,000,000	22,500,000 shares	225,000,000	Capital increase	5,587,500	Note 2
1999.09	NT$10	36,500,000 shares	365,000,000	29,000,000 shares	290,000,000	Capital increase from earnings	None	Note 3
2000.09	NT$10	47,160,000 shares	471,600,000	39,165,000 shares	391,650,000	Capital increase from earnings	None	Note 4
2001.09	NT$10	97,320,000 shares	973,200,000	52,200,000 shares	522,000,000	Capital increase from earnings	None	Note 5
2002.08	NT$10	128,000,000 shares	1,280,000,000	63,654,000 shares	636,540,000	Capital increase from earnings	None	Note 6
2004.02	NT$10	128,000,000 shares	1,280,000,000	64,927,266 shares	649,272,660	Convertible corporate bonds	None	Note 7
2004.11	NT$10	128,000,000 shares	1,280,000,000	65,239,998 shares	652,399,980	Convertible corporate bonds	None	Note 7
2005.07	NT$10	128,000,000 shares	1,280,000,000	68,909,100 shares	689,091,000	Convertible corporate bonds	None	Note 8
2005.11	NT$10	128,000,000 shares	1,280,000,000	69,371,204 shares	693,712,040	Convertible corporate bonds	None	Note 8
2006.04	NT$10	128,000,000 shares	1,280,000,000	70,544,948 shares	705,449,480	Convertible corporate bonds	None	Note 8
2006.08	NT$10	128,000,000 shares	1,280,000,000	70,591,158 shares	705,911,580	Convertible corporate bonds	None	Note 8
2006.10	NT$10	128,000,000 shares	1,280,000,000	71,663,242 shares	716,632,420	Convertible corporate bonds	None	Note 8
2007.02	NT$10	128,000,000 shares	1,280,000,000	75,570,735 shares	755,707,350	Convertible corporate bonds and employee stock options	None	Note 9
2007.06	NT$10	128,000,000 shares	1,280,000,000	78,727,983 shares	787,279,830	Convertible corporate bonds and employee stock options	None	Note 9
2007.08	NT$10	128,000,000 shares	1,280,000,000	80,294,832 shares	802,948,320	Convertible corporate bonds and employee stock options	None	Note 9
2007.10	NT$10	128,000,000 shares	1,280,000,000	81,712,562 shares	817,125,620	Convertible corporate bonds and employee stock options	None	Note 9
2008.01	NT$10	128,000,000 shares	1,280,000,000	82,155,298 shares	821,552,980	Convertible corporate bonds and employee stock options	None	Note 9
2008.07	NT$10	128,000,000 shares	1,280,000,000	82,210,750 shares	822,107,500	Convertible corporate bonds	None	Note 9
2008.12	NT$10	128,000,000 shares	1,280,000,000	79,210,750 shares	792,107,500	Cancellation of treasury stock	None	Note 10
2009.10	NT$10	128,000,000 shares	1,280,000,000	78,176,650 shares	781,766,500	Capital reduction through treasury shares	None	Note 11
2009.12	NT$10	128,000,000 shares	1,280,000,000	77,639,650 shares	776,396,500	Cancellation of treasury stock	None	Note 12
2010.03	NT$10	128,000,000 shares	1,280,000,000	78,192,750 shares	781,927,500	Employee stock options	None	Note 13
2010.07	NT$10	128,000,000 shares	1,280,000,000	78,194,750 shares	781,947,500	Employee stock options	None	Note 14
2010.09	NT$10	128,000,000 shares	1,280,000,000	78,209,900 shares	782,099,000	Employee stock options	None	Note 15
2011.01	NT$10	128,000,000 shares	1,280,000,000	78,222,550 shares	782,225,500	Employee stock options	None	Note 16
2011.12	NT$10	128,000,000 shares	1,280,000,000	72,885,550 shares	728,855,500	Cancellation of treasury stock	None	Note 17
2012.06	NT$10	128,000,000 shares	1,280,000,000	70,920,550 shares	709,205,500	Cancellation of treasury stock	None	Note 18
2023.08	NT$10	128,000,000 shares	1,280,000,000	56,736,440 shares	567,364,400	Capital Reduction	None	Note 19

Note 1: 1997/09/30 Capital increase: ordinary shares of NT$60,450,000 and technology shares of NT$14,550,000. (1997.10.06 Letter (86)-Yuan-Tou-Zi No.20538)
Note 2: 1999/09/06 Capital increase: ordinary shares of NT$24,412,500 and technology shares of NT$5,587,500. (Letter (88)-Tai-Cai-Zheng-(Yi) No.62181).
Note 3: 1999/09/06 Capital increase from earnings: ordinary shares of NT$65,000,000. (Letter (88)-Tai-Cai-Zheng-(Yi) No.62181).
Note 4: 2000/09/02 Capital increase from earnings: ordinary shares of NT$101,650,000. (Letter (89)-Tai-Cai-Zheng-(Yi) No.71850).
Note 5: 2001/09/07 Capital increase from earnings: ordinary shares of NT$130,350,000. (Letter (90)-Tai-Cai-Zheng-(Yi) No.141585).
Note 6: 2002/08/12 Capital increase from earnings: ordinary shares of NT$114,540,000. (Letter (91)-Tai-Cai-Zheng-(Yi) No.0910138722).
Note 7: 2003/08/15 Issued convertible corporate bonds of NT$200,000,000 with a conversion price of NT$13.43; a total of 14,892,833 ordinary shares may be converted into (i.e., NT$148,928,330). The conversion price of NT$13.43; 171 bonds were converted in 2004/02, and 42 bonds were converted in 2004/11. (Letter (92)-Tai-Cai-Zheng-(Yi) No.0920134849).
Note 8: 2004/07/06 The conversion price was reduced from NT$13.43 to NT$10.82; 397 bonds were converted in 2005/07, 50 bonds were converted in 2005/11, 127 bonds were converted in 2006/04, 5 bonds were converted in 2006/08, and 116 bonds were converted in 2006/10. (Letter (93)-Zheng-Zai-Zi No.1898).
Note 9: 2007/02/05 The convertible price of the corporate bonds was NT$10.82, and 411 bonds were converted. In addition, employee stock options for 109,000 shares were exercised with an execution price of NT$14.55. 335 corporate bonds were converted, and 61,150 shares of employee stock options were exercised in 2007/06, 155 corporate bonds were converted, and 134,325 shares of employee stock options were exercised in 2007/08, 129 corporate bonds were converted, and 225,500 shares of employee stock options were exercised in 2007/10, 46 corporate bonds were converted, and 17,600 shares of employee stock

options were exercised in 2008/01, and 46 corporate bonds were converted, and 55,452 shares of employee stock options were exercised in 2008/07.

Note 10: 2008/10-11 Repurchased 3,000,000 treasury shares, which were fully canceled on 2008/12/18.
Note 11: The Company repurchased a total of 1,683,000 treasury shares in 2006 and transferred 648,900 shares to employees in 2007, with 1,034,100 shares left, which were fully canceled in October 2009.
Note 12: The Company repurchased a total of 537,000 treasury shares in 2009, which were fully canceled in December 2009.
Note 13: In 2010 Q1, a total of 553,100 shares were subscribed by employees.
Note 14: In 2010 Q2, a total of 2,000 shares were subscribed by employees.
Note 15: In 2010 Q3, a total of 15,150 shares were subscribed by employees.
Note 16: In 2010 Q3, a total of 12,650 shares were subscribed by employees.
Note 17: The Company repurchased a total of 5,337,000 treasury shares in 2011, which were fully canceled in December 2011.
Note 18: The Company repurchased a total of 1,965,000 treasury shares in 2012, which were fully canceled in June 2012.
Note 19: 2023/08/09 Capital reduction: ordinary shares of NT$141,841,100. (TSEC Letter No. 1121803806).

April 27, 2026 / Unit: shares

Type of equity	Authorized capital stock
	Shares outstanding			Unissued shares	Total
	Listed	Unlisted	Total
Common shares	56,736,440	0	56,736,440	71,263,560	128,000,000

Information related to shell registry: Not applicable.

(2) List of major shareholder

Shares Name of major shareholder	Shares held (thousand shares)	Ownership (%)
Yeh Maw-Lin	5,626	9.92%
Chen Hua-Ling	1,403	2.47%
Chang Shih-Lung	987	1.74%
Yeh Li-Tung	942	1.66%
Wang Yan-zhi	755	1.33%
Standard Chartered Bank (Hong Kong) Limited – Securities Trading Investment Account, held in custody with the Business Department of Standard Chartered Bank (Taiwan) Limited	717	1.26%
Investment Custody Account of JPMorgan Limited, held with JPMorgan Chase Bank, N.A.	642	1.13%
Yuanta Commercial Bank as custodian for Loop Telecommunication International Inc. Employee Trust Fund Account	617	1.09%
Tsai Ho-Chin	606	1.07%
Hung Su-Fen	598	1.05%

(3) The Company's dividend policy and implementation:

Dividend policy

To continue to expand its scale and improve profitability with equal considerations given to the capital adequacy ratio, the Company adopts the residual dividend policy. The market where the Company operates is the information and communication industry with high growth. In response to the long-term business development, future capital requirements, and long-term financial planning of the Company, and satisfying the cash inflow requirements of shareholders, if the Company records any earnings from its final account, apart from paying all taxes according to the law, it shall first compensate cumulative losses from prior years. It may appropriate special reserve based on the Company's requirements. Then, the remaining balance shall be combined with the cumulative undistributed earnings from prior years; after retaining partial earnings based on the operating status and for a balanced dividend policy, the Company may make distribution after a resolution is made by the shareholders' meeting based on the following principles:

A. Remuneration of employees shall be no less than 10%; among the amount of employee compensation, no less than 5% shall be allocated for the remuneration of junior employees. Remuneration of employees may be made in shares or cash; upon the distribution of remuneration of employees, the distribution targets may include employees, who fulfill certain conditions, of subordinated companies; such conditions shall be established by the Board.

B. Remuneration of Directors shall be no more than 5%.

C. The remaining shall be shareholders' bonuses.

Based on the capital budget planning of the Company, it distributes share dividends to retain the capital required, and the remaining portion may be distributed in cash dividends. The total cash dividend distribution mentioned above shall not be lower than 10% of the total dividend distribution, in principle. If the Company has no earnings or retained earnings of the year, no dividend or bonus shall be distributed. For earning distribution, the Company distributes cash dividends to shareholders. In 2025, earnings available for distribution was NT$186,875,477, and the Company intends to distribute NT$3.2 per share (totaling NT$181,556,608). The proposal is awaiting approval from the 2026 annual shareholders' meeting. The calculation of cash dividends shall be rounded to NT$1 based on the distribution ratio; the total fractional amount less than NT$1 is included in other income of the Company.

Based on the Company Act amended in May 2015 and the amended Articles approved by the shareholders' meeting in June 2016, the Company distribute no less than 10% and no more than 5% of the net profit before tax of the period before deducting remuneration of employees and remuneration of Directors and supervisors as the remuneration of employees and remuneration of Directors, respectively. The proposal for the earning distribution of 2025 Year is expected to be resolved at the annual shareholders' meeting to be convened in 2026.

Loop Telecommunication International, Inc.
Table of Earning Distribution
2025
(In New Taiwan Dollars)

Item		Amount
Undistributed earnings at the beginning of the period		8,373,612
Net income in 2025	195,605,290
Add: Remeasurement of defined benefit obligation recognized in retained earnings	2,958,288
Amount of net income of the period plus items other than net income of the period
included in the undistributed earnings of the year		198,563,578
Less: Legal reserve		(19,856,358)
Less: Appropriation of special reserve according to the law		(205,355)
Earnings available for distribution for the year		186,875,477
Less: Cash dividends of shareholders (Note 4)		(181,556,608)
Undistributed earnings at the end of the period		5,318,869

After the distribution of the abovementioned dividends, if there are changes in the payout ratio due to changes in the number of outstanding shares, the Company intends to authorize the Board to make adjustments and arrange relevant matters.
The abovementioned dividend distribution was reported to and approved by the shareholders' meeting as a resolution. The Company intends to authorize the Board to arrange the date for dividend distribution and other relevant matters based on actual circumstances according to relevant laws and regulations.
If changes are required for matters related to the abovementioned dividend distribution due to regulatory requirements, amendments to the approval of the competent authority, or the operating evaluation of the objective environment, the Company intends to authorize the Board to make arrangements based on actual circumstances.
The dividend payment is NT$3.2 per share.

Chairman:
Managerial officer:
Finance Manager/Chief Accountant:

(4) Effect of stock grants proposed or at the shareholders' meeting on business performance and earnings per share of the Company: Not applicable.

(5) Remunerations of employees and Directors

A. Based on the percentage or scope of remuneration of employees and Directors stipulated in the Company's Articles of Incorporation:

Based on the distribution policy of remuneration of employees and Directors stipulated in the Articles of Incorporation. If the Company records any earnings from its final account, apart from paying all taxes according to the law, it shall first compensate cumulative losses from prior years. It may appropriate special reserve based on the Company's requirements. Then, the remaining balance shall be combined with the cumulative undistributed earnings from prior years; after retaining partial earnings based on the operating status and for a balanced dividend policy, the Company may make distribution after a resolution is made by the shareholders' meeting based on the following principles:

a. Remuneration of employees shall be no less than 10%: Remuneration of employees may be made in shares or cash, and the distribution targets may include employees, who fulfill certain conditions, of subordinated companies; such conditions shall be resolved by the Board.
b. Remuneration of Directors shall be no more than 5%.
c. The remaining shall be shareholders' bonuses.

B. The estimation basis for the amount of employee and Director remunerations shall be subject to the calculation basis for the number of shares of employee remuneration through stock distribution and the accounting for differences between the actual distribution amount and the estimated amount:

If there is any material change in the distribution amount resolved by the Board before the date on which the consolidated annual financial statements are approved for publication, adjustments shall be made to the consolidated annual expenses initially provided regarding such changes. If there is any change in the amount after the date on which the annual financial statements are approved for publication, it shall be processed as changes in accounting estimation and adjusted and accounted for in the following year. If the shareholders' meeting resolved to distribute employee bonuses in share dividends, the number of shares of share dividends shall be determined by dividing the amount of bonuses resolved by the fair value of shares; the calculation basis of the fair value of shares is the closing price on the day before the day on which a resolution was made by the shareholders' meeting, taking into account the effects of ex-right and ex-dividend.

C. Remuneration distribution approved by the Board:

a. Amount of remuneration for employees and Directors distributed in cash or shares. If there is any difference from the estimated amount in the year of expense recognition, the difference, reason, and measures adopted in response shall be disclosed: The proposal of the 2025 earning distribution of the Company was approved by the Board as a resolution on March 11, 2026; the intended earning distribution approved by the Board is as follows. Treatment for the amount of differences: None.

Item	Estimated amount in 2025 Year	Approved by the Board for distribution in 2025
Employee compensation	25,558,035	25,558,035
Directors' compensation	5,111,607	5,111,607
Total	30,669,642	30,669,642

b. The amount of any employee compensation distributed in shares and the size of that amount as a percentage of the sum of the after-tax net income stated in the unconsolidated financial statements for the current period and total employee compensation: None.

c. The estimated earnings per share after considering the intended remuneration of employees and Directors to be distributed: In 2008, the Company expensed the remuneration of employees and the remuneration of Directors. In 2008, the Company accounted for the estimation of expenses of remuneration of employees and remuneration of Directors in the financial statements. In 2025, the estimated earnings per share were equivalent to the amount accounted for in the financial statements.

D. The actual distribution of employee and Director remunerations in the preceding year (including the number of shares, the amount distributed, and stock price), and, if there is any difference from the actual distribution and the employee and Director remunerations recognized, the differences, reasons, and handling status shall be described:

a. Amount of remuneration for employees and Directors distributed in cash or shares. If there is any difference from the estimated amount in the year of expense recognition, the difference, reason, and measures adopted in response shall be disclosed: The proposal of the 2024 earning distribution of the Company was approved by the Board as a resolution on March 13, 2025; the intended earning distribution approved by the Board is as follows. Treatment for the amount of differences: None.

Item	Estimated amount in 2024	Approved by the Board for distribution in 2024
Employee compensation	27,473,535	27,473,535
Directors' compensation	5,494,707	5,494,707
Total	32,968,242	32,968,242

c. The estimated earnings per share after considering the intended remuneration of employees, Directors, and supervisors to be distributed: In 2008, the Company expensed the remuneration of employees and the remuneration of Directors and supervisors. In 2008, the Company accounted for the estimation of expenses of remuneration of employees and remuneration of Directors and supervisors in the financial statements. In 2024, the estimated earnings per share were equivalent to the amount accounted for in the financial statements.

(6) Repurchase of shares by the Company: None.

Issuance of corporate bonds, conversion of corporate bonds, exchange of corporate bonds, corporate bonds issued under shell registry, and corporate bonds with options: None.
Issuance of preferred shares and preferred shares with options: None.
Global depository receipts: None.
Employee stock options and restricted stock awards:

(1) Employee stock options and restricted stock awards

A. Status of unexpired employee stock options of the Company as of the publication date of the annual report shall be disclosed, and the effects on shareholders' interest: None.

B. Name, acquisition, and subscription status of managers who acquired employee stock options and the top ten employees in terms of the number of shares that may be subscribed based on the options acquired as of the publication date of the annual report: None.

(2) Restricted stock awards:

A. Status of unvested restricted stock awards as of the publication date of the annual report shall be disclosed, and the effects on shareholders' interest: None.

B. Name and acquisition status of managers who acquired restricted stock awards and the top ten employees in terms of the number of shares that may be acquired as of the publication date of the annual report: None.

Mergers or receipt of new shares issued by other companies: None.

(1) For any merger or receipt of shares newly issued by other companies completed in the most recent year and up to the publication date, the following matters shall be disclosed:

A. For companies with shares listed on TWSE (the "TWSE-listed companies") or companies with shares approved to be traded at TPEx (the "TPEx-listed companies") according to the requirements under Article 3 or Article 3-1 of the Taipei Exchange Rules Governing the Review of Securities for Trading on the TPEx, the evaluation opinion of the underwriter for any merger or receipt of shares newly issued by other companies in the most recent quarter shall be disclosed: None.

B. Except for companies stated in the preceding item, the implementation status in the most recent quarter shall be disclosed; if the implementation progress or the benefit has not achieved the estimated objective, substantially describe the effects on shareholders' interest and the improvement plan: None.

(2) If the Board approved a merger or receipt of shares newly issued by other companies as a resolution in the most recent year and up to the publication date of the annual report, disclose the implementation status and the basic information of the company of the merger or receipt; for any on-going merger or receipt of shares newly issued by other companies, disclose the implementation status and effects on shareholders' interest: None.

Implementation status of the capital utilization plan: None.

(IV) Operational Highlights

Scope of business

(1) Scope of business:

Major content of scope of business:
CC01100 Controlled Telecommunications Radio-Frequency Devices and Materials Manufacturing
I301010 Information Software Services
CC01120 Data Storage Media Manufacturing and Duplicating

I. Research, development, production, manufacturing, and sales of the following products:
1. User remote line disconnectors, protectors and their components.
2. Line reactors and their components.
3. Subtitle phones and their components.
4. Smart network resource management multiplexer, network access equipment (including T1/E1, FT1/FE1 CSU, and CSU/DSU) and its components, PCM carrier terminal (including D4/AD4) and its components, 64K/56Kbps transmission equipment (including DDS) and its components, high-speed digital user transmission systems and their components, and DLCs.
5. LAN/WAN equipment, network management systems, their sub-systems, and their components.
6. Overall service for digital network terminal connectors, their sub-systems, and their components.
7. Convertors, remote controls for cable TVs, and their components.
8. Communication system power supply units and their components.
9. Radio communication systems and their components.

II. Consultation, design, installation and repair related to the abovementioned businesses.

III. Import/export trading operations related to the businesses of the Company.

(2) Industry overview

A. Current status and development of the industry

In 2025, Taiwan's telecommunications industry will benefit from the ongoing advancement of global broadband infrastructure, the gradual release of Wi-Fi 6/6E and Wi-Fi 7 products, and the increasing demand for enterprise digital transformation, all of which will drive the overall momentum of shipments to recover. However, the growth rate will remain relatively moderate at the beginning of the year due to the uneven recovery pace of terminal market demand and inventory adjustments. The industry's output value for 2025 is estimated at approximately NT$1.29 trillion, reflecting a growth of about 1.2% compared to 2024. Looking ahead to 2026, the development of Taiwan's telecommunications industry will be further enhanced by the deepening

integration of technologies such as AI, IoT, cloud computing, and low-earth orbit satellite communications, which will increase the demand for communication equipment and comprehensive solutions. The industry's output value is projected to reach NT$1.32 trillion, with an annual growth of approximately 2% to 3%.

In 2025, AI technology will continue to deepen its application in the information and communications sector, driving the accelerated development of AI PCs, smart terminal devices, and edge AI devices. It will also demonstrate greater integration benefits in cloud, edge computing, and IoT application scenarios. Moreover, as AI applications become widespread, issues of data privacy, cybersecurity risks, and AI governance continue to gain attention. Individuals, enterprises, and governments must confront more complex challenges in data management and digital trust. Establishing secure, compliant, and transparent mechanisms for data processing and model operations has become critical for industry development.

Globally, 5G development has gradually entered the phase of deepening post-5G applications and the forward-looking research and development stage for 6G. Taiwan is also actively promoting open architectures (such as Open RAN), private network deployments, and the implementation of vertical industry applications, driving upgrades in network communication equipment and fostering growth in emerging applications. Nevertheless, the telecommunications industry also faces transformation and challenges due to heightened geopolitical risks, pressures from supply chain restructuring, the demand for key technology self-sufficiency, and intensified competition over international standards.

B. Connectivity between the upstream, midstream, and downstream of the industry

The communication and networking industry utilizes wired or wireless transmission or accepts symbols, signals, text, video, audio, and other messages. The upstream of the industry chain are suppliers who assemble parts and components of various communication terminals, and the downstream are suppliers of various terminal application products.

Source: Compiled by the Company

a. Upstream

The upstream of the communication and networking industry includes network IC chips, microprocessors, GPS and sensor chips, memory, active/passive elements, PCBs, cooling fans and antenna, plastic and metal cover, and other parts and components of relevant communication products that are primarily used in the equipment of the downstream of the communication and networking industry.

Taiwanese companies occupy a material position in the global broadband terminal industry, including the upstream chips and parts and components for xDSL modems, Cable Modem, PON CPE, Wi-Fi routers, LTE CPE, exchanger, and other products, and the downstream brand terminal or foundry businesses. For main chips, wired network chips may be divided into wide area network (WAN) and local area network (LAN) chips. WAN terminals include xDSL, cable modem, and FTTH; the mainstream LAN terminals are PLC and MoCA.

b. Downstream

The downstream of the communication and networking industry can be divided into network equipment, optical communication equipment, wireless communication equipment, wired communication equipment, and telecommunication service industries.

b-1 network equipment: Major products are modems, network cards, gateways, routers, and STBs. With the continual popularization of the 4K video and audio content and the fast penetration of IoT and mobile devices in markets of all countries, the requirements for 4G LTE modems, wireless modules, VDSL Modem, Cable Modem, PON ONU, and high-end home gateway continued to increase. In addition, the emergence of smart home applications and home network connection video services has driven the shipping of OTT network STBs, smart Wi-Fi routers, broadband power cables, smart speakers, and other smart household end products.

b-2 Optical communication equipment: Major products include optical cable, optical active and passive elements, and optical transmission terminal equipment. Due to the continual increase the global broadband users and the emergence of the cloud calculation industry, telecommunication companies worldwide have been actively providing various integrated services (i.e., network TV, video conference, video surveillance, and smart household applications) to improve the average revenue contributions of users. Internet companies have also accelerated the establishment of global data centers, which brought about the growth in the demand for high bandwidth equipment and allows the global communication industry to attache attention to the development of FTTH and optical communication parts and components. FTTH networks and mobile broadband networks have driven the growth in PON terminals and optical receiver module industries. The demand for

intranet and external connection of data centers brought about the development of 40G/100G optical receivers, AOCs, and other elements. At the current stage, multiple optical communication companies in Taiwan have invested in active and passive optical elements, and the major products include GPON/EPON terminal products, BOSA on Board, and optical receivers for FTTH, data centers, and mobile stations.

b-3 Wireless communication equipment: Major products include mobile phones, GPS systems, satellite and micro-communication equipment. The development of hand-held devices will turn to simple and humanized interfaces and integration with back-end application service trends, and application software and content service will be valued. Furthermore, with the complete wireless communication infrastructure and the increase in transmission speed, device and vertical markets turned to network connection and smart IoT applications, facilitating the rapid expansion of the scale of the wireless communication equipment market. At present, the mainstream wireless communication equipment is smartphones, and large-scale international companies, including Apple, Huawei, and Samsung, occupy the leading position. Chinese companies, including Xiaomi, Oppo, and Vivo, rose to catch up and have successfully entered the international market; the intense competition continued. In other fields, many Taiwanese companies actively invested in the vehicle information/communication and entertainment market and launched automotive wireless modules, GPS, vehicle video and audio, vehicle sensors, and other equipment.

b-4 Wired communication equipment: Include analog and Internet telephones, facsimile, and network cameras. Within the scope, major products developed by communication companies in Taiwan include Internet telephones, entire sets of network communication systems (i.e., network telephone exchangers and Internet telephone gateways), online video conference meeting devices, and other user products. Due to the software development of the Internet telephone industry and the popularization of social media communication, large-scale international companies took the lead in the market. The room for the development of relevant domestic hardware producers was compressed, and they are attempting to integrate mobile and social media communication application models to launch new products.

b-5 Telecommunication industry: By 2025, over 300 telecommunication companies in more than 220 countries and regions worldwide have launched 5G commercial network services. The number of mobile users continues to grow, with 5G users exceeding 2 billion, maintaining a double-digit annual growth rate. The proportion of 5G users within the total mobile users is also continuously increasing, driving the rapid development of various

smart terminals and IoT devices. The enormous demand for data transmission brought about by the significant increase in mobile user data usage continues to test telecommunication companies' service capabilities and optimization mechanisms in aspects such as high-speed connections, low-latency transmission, and network stability. Governments in different countries continue to release spectrum resources and promote the adoption of technologies such as Small Cell, network slicing, and edge computing by telecommunication companies to enhance the overall quality and performance of mobile network services.

C. Development trends of products

Facing the MCC market's development trends towards high-speed transmission, hybrid architecture integration, and enhanced security protection, the company's product development will continue to focus on improving transmission performance, system integration capabilities, and network security as its core direction. Centering on the G7800 platform, we will continue to enhance its functions in transmission, switching, encryption, and protocol conversion. We will also develop integrated applications supporting various technologies such as MPLS-TP, OTN, EoS/CEP, and circuit emulation to meet the multi-layer architecture needs of backbone and access networks. At the same time, in response to the market environment of the coexistence of existing SDH/SONET networks and next-generation MPLS-TP/IP networks, products will develop towards hybrid solutions that support the coexistence of TDM and packet transmission, to assist customers in smoothly upgrading within existing architectures.

In terms of information and communication security, as the demand for security protection in critical infrastructure increases, the Company will continue to strengthen the isolation and protection capabilities of IT and OT environments. It will integrate OT Firewall and related cybersecurity platforms, combined with network management systems such as iNMS and iNET, to develop comprehensive solutions that include network management, anomaly diagnosis, and security protection. In addition, product development will also focus on the integration of multi-layer transmission technologies, including the application of SDH/SONET, MPLS-TP, OTN, and WDM, to enhance network reliability, scalability, and overall performance.

For critical infrastructure applications, the Company will continue to promote an integrative plan centered on IEC 61850, combining L2/L3 switch and MPLS-TP technologies, and introducing mechanisms such as PRP/HSR and post-quantum encryption to construct a highly reliable and future-scalable network architecture. Overall, the Company's products will develop towards high reliability, high flexibility, and high integration capability. Through software and hardware integration and solution deepening, the added value and market competitiveness of the products will be enhanced.

D. Product competitive status

Major competitors of the Company worldwide include Hitachi (ABB), Nokia (Alcatel-Lucent), Cisco, Huawei, and other major equipment companies. Facing the intense industry competition and market changes, the communication system integration solutions developed, produced, marketed, and established by Loop Telecom have spread across Asia, Europe, America, Australia, the Middle East, and other countries, proving that the reliability, stability, and durability are recognized and supported worldwide.

(3) Technology and R&D overview

A. R&D expenses invested and technologies or products successfully developed in each of the most recent five years a.

a. R&D expenses invested in each of the most recent five years

Since the establishment of the Company, its R&D strategic target has been focusing on the R&D of the "Local Loop Access" field, and it constantly developed new technologies, new products, new software platforms, and made innovations. The experience of R&D over the years has successfully established the core technologies for digital transmission equipment. Therefore, R&D expenses each year maintain at a certain level.

(In Thousands of New Taiwan Dollars)

Item/year	2020	2021	2022	2023	2024	2025
Net revenue	598,096	515,510	438,242	649,097	649,951	677,719
Research and development expenses	139,363	140,729	134,715	152,224	158,505	167,185
Ratio of R&D expenses to net operating income	23%	27%	31%	23%	24%	25%

b. Technologies or products successfully developed in the most recent five years

2016-2020

With over two decades of R&D experience accumulated, the Company integrated multiple service interfaces of PDH, SDH fiber technologies, Ethernet router technologies, and MPLS technologies as a comprehensive network solution. It included the cross-field and cross-company product integration into the Company's network system to directly face end users (i.e., electric power communication and military network of the government), directly cooperate with large-scale international SI companies (i.e., NEC), and directly cooperate with IoT customers (i.e., power plants, public transport, and governmental agencies) to develop new products in the hope of providing popular products and comprehensive solutions under the trends of the IoT industry.

2021-2025

For many years, Loop Telecom has provided customers with comprehensive solutions for mission-critical communications (MCC), spanning from the user access layer to the network core layer. Currently,

in key mission-critical communication networks for sectors such as power utilities and government agencies, business operations are gradually shifting toward IP data, video, and cloud services. The traditional SDH/SONET backbone network infrastructure, built on TDM technology, is increasingly constrained by the limited flexibility of SDH bandwidth utilization and the high cost of upgrades, and is thus expected to gradually phase out of the mainstream market. As a result, over the next 5 to 10 years, it is anticipated that most users will transition to solutions based on packet transmission technologies, ushering in a new wave of backbone infrastructure replacement. To contend with rapidly changing market needs, Loop Telecom's product line includes over 30 products, and it has been committed to the R&D of new products such as G7860A, WDM1800, O9400-PTN10G, O9500-PTN10G, and other mixed service multiplexers to provide excellent transition plans for customers during the transitional period. At the same time, this enables customers to perform end-to-end circuit management in the new generation packet transmission network through a network management system similar to the concept of TDM networks, potentially saving customers the training costs of maintenance and operation personnel. Additionally, we have developed our own ultra low latency zero packet drop protection switching technology for the access service product line (AM3440), which can solve the main hindrances that mission-critical users will encounter when facing the transition from backbone technology to packet transmission network, such as uncontrollable delay variation and asymmetric delay, etc. Building upon these innovative technologies, Loop Telecom's comprehensive upgrade from backbone transmission to service access and network management systems will provide customers with dozens of MCC backbone network to access end-to-end solutions.

For strategies in the future market, the MCC market is enormous and requires customized overall solutions. To seize highly competitive orders and contracts, the development of the new G7800 product is being accelerated, along with strengthened R&D management. In the MCC switch market, the Company is committed to launching solutions that meet market demands and stand up to rigorous validation. Currently, several major international companies have expressed interest in initiating ODM cooperation with the Company, and development of the next-generation switch solution has already commenced. At the same time, the commercialization of cybersecurity solutions is being expedited to enter the market and generate revenue as soon as possible, with a strong emphasis on promotion and effective management. Loop Telecom will expand its market presence by actively participating in major communication exhibitions held worldwide and organizing product seminars. Through showcasing the performance and features of new Loop products, the Company aims to increase exposure and enhance brand visibility.

Regarding the marketing strategy for sharing the experience of the

successful new backbone transmission case of Loop Telecom with the international society, in the next generation of solutions, Loop Telecom's development team will integrate product software and hardware functionalities to develop vertically integrated maintenance services for international market customers, which is certain to bring more orders and enhance operational performance. Combining the MCC networking product portfolio under the new business and expanding the niche of various products, it is likely to become the growth focus for operations in the future.

Our goal is to enter the top three in the utility market and become the leading brand in MCC transmission solutions. Based on the existing foundation, the Company continues to reinforce its management and makes constant efforts by adhering to the philosophy of continuing to develop new products and explore new markets. In the future, the Company will become a leader, grasp business opportunities, create excellent performance, and continues to strive for the maximized operating performance for all shareholders.

B. Current plant for the most recent year and new products being developed

The Company is prominently launching its flagship model, the Loop-G7800, positioned as a next-generation PTN high-bandwidth multi-functional transmission access device. It marks Loop Telecom's official entry into the MCC field, expanding both its product portfolio and technological depth. Loop-G7800 is based on the Company's years of accumulation and continuous innovation of technology. The company has also invested in a large amount of cost to develop open-source management integrated automated test platform to improve quality control at all stages from R&D to production. In addition to serving as a backbone node, the Company also continue to develop a dozen types of interface cards that accommodate multiple rates of service. This enables support for a range of network interfaces from traditional low-speed 64K circuits to next-generation critical mission backbone requirements of 100G packet transmission networks, all within a single system. Furthermore, configurations can be tailored according to customer applications.

With the Loop-G7800 integrating multiple key core advantages, customers will gain greater flexibility and foresight in network planning. Whether for phased implementation under budget-constrained projects or full-scale upgrades to next-generation transmission architectures, the G7800 series is fully equipped to support such needs. The product has already attracted significant attention from numerous partners, and its future growth potential is highly promising.

Except for the major backbone and access network product series used worldwide, Loop has also expanded in recent years into ISS, AI solutions, big data analysis iNMS-Big Data Analysis/AI, system auto-diagnosis and repair, iNET-Circuit Creation/Auto-Diagnostic, corporate new era office network, and corporate 5G private network, and other new technologies to develop new markets for corporate and governmental information security network overall solution development. In recent years, due to frequent information security

events, the requirements for information security of corporations and the government have been increasing. Loop Telecom has obtained ISO27001 and IEC62443-4-1 information security certification and performed a firmware upgrade for different products catering to the MCC market to support FIPS 140-3. Meanwhile, the Company also plans to launch the Loop-ISS2150 mission-critical network firewall and Loop-ISS2110 government configuration baseline network setting management system to assist customers in establishing the optimized MCC information security protection environment.

a. Access multiplexer series products

Loop-AM3440 of the Company is widely adopted worldwide, including the power system, transportation, governmental and military communication network, and other markets in Taiwan. Its high reliability, stability, various access interfaces, and the application cards developed based on customers' application requirements allow Loop-AM3440 to continue to maintain the leading position in the access multiplexer market. Broadband packet backbone networks have become popular; however, the tradition TDM access service for end equipment is still generally being used. In response to market demands, the Company has utilized proprietary FPGA technology to design and develop the new generation control card, AM3440, along with an expansion backplane featuring Ethernet high-speed buses. This enables it to meet the end-to-end service communication requirements for various access services in TDM and packet hybrid networks. Due to differences in transmission characteristics between packet networks and the constant bit rate (CBR) performance of TDM networks, meeting stringent quality requirements such as low latency for critical mission services becomes even more challenging. The Company's self-developed end-to-end packet loss protection algorithm has the capability to meet the latency requirements of end-to-end services in packet network environments, and has been tested and verified by major international companies. Furthermore, to address the cybersecurity requirements of critical mission networks, the Company in 2023 obtained validation for compliance with the United States Federal Information Processing Standards (FIPS) 140-3 security standard for cryptographic modules. In 2025, MPLS-TP transport capability was also developed on the AM3440 platform, enabling it to serve as an edge node in a small MPLS core network. This provides customers with a flexible deployment solution for multi-service integration, low-latency transmission, and high-stability operation under various access network levels and space constraints ranging from 5U to 1U.

b. Optical communication equipment

Due to the development of optoelectronic technologies, optoelectronic cables with high transmission bandwidth with an attenuation of less than 1dB each km may be produced in mass. Together with the development of high-order digital multiplex technologies and the development of high-performance "optoelectronic devices," high-speed, high-capacity optical

communication systems with a transmission speed per second reaching 90 million "bits," even 400 million "bits" per second have entered the stage of practical use. Light can also generate a series of patterns by flashing (i.e., on and off of the flashlight), which is called the "optical signal." Light possesses greater transmission information capacity than power; that is, light can surely generate shorter pulses and form patterns of high density and abundant information within the same period of time. Under such speed, "stacks" are formed by combining such graphic units to transmit multiple different information within one fiber. This is the reason why "optical fiber" is able to concurrently accommodate much information for transmission.

Advantages of optical fiber communication

A. Long-distance communication with a reduction in costs:

If an optical fiber with a $1.3\mu \mathrm{m}$ wavelength for transmission, there is a loss of approximately 0.4-0.5dB per km, an optical fiber with a $1.5\mu \mathrm{m}$ wavelength has a low transmission loss of approximately 0.2-0.25dB per km.
Compared to traditional copper cable transmission systems, the distance between repeaters for optical communication is lengthened to tens of kilometers, and optical communication can significantly reduce the number of repeaters, reducing the costs of communication systems.
For example, the distance between Taipei and Keelung is slightly over 20 kilometers; if an optical fiber connection is adopted, the establishment of a large-scale machine room in Keelung is not required. The low transmission loss of optical fibers lengthens the transmission distance between repeaters and reduces the costs and complexity of systems; therefore, optical fibers are more suitable for long-term transmission.

B. Optical fibers are delicate, light, and flexible and may be easily bounded; therefore, when optical fibers are bounded as optical cables for laying and installation, they save room for pipes. Optical fibers effectively improve the use rate of pipes, possess high economic efficiency for allocation rooms, and are suitable for aircraft, satellites, and vessels.

C. Optical fibers possess enormous communication bandwidth reaching 1-2GHz or above. The bandwidth of general cable modems is approximately $330\mathrm{MHz} - 550\mathrm{MHz}$; in comparison, optical fibers possess ultra-high signal carrier capacity.

D. Optical fiber materials are generally quartz glass, which has non-corrosive, fire-proof, and water-proof characteristics and long, useful life. In addition, optical fibers have favorable flexibility and adaptability to perfectly protect wrappers and tensile substances, allowing optical fiber transmission to save operating costs.

E. They won't be affected by electromagnetic waves, applicable to fields that may be easily stroke by lightning or high power fields,

significantly improving the fidelity for communication.

F. With high confidentiality, signals will not radiate outside of optical fibers, which is suitable for military, bank connections, and computer networks.

Due to the abovementioned advantages of optical fiber systems, countries are optimistic about the prospects of optical fiber communication and have invested major capital and human resources in R&D. With the arrival of the information era, communication networks of high capacity, low loss, and favorable reliability are fundamental, and optical fiber communication systems are the best options. Therefore, it is estimated that the majority of the copper cable will be replaced with optical fibers in the near future.

The scope of the overall optical fiber communication industry is relatively extensive, from local end equipment, transmission equipment, parts and components in transmission equipment, and user network equipment have proprietary products of optical fiber communication. Even though there are many diverse products, categorization may be made based on products that can have commercial mass production at present; parts and components can be roughly divided into three categories: optical fibers and optical cables made with optical fibers, active optical elements, and passive optical elements.

Due to the numerous advantages of optical fiber systems, the Company has developed several optical fiber system products, such as the Loop-O9500R PTN and Loop-O9400R PTN optical Transport Network (OTN) multiplexer equipment. These devices are widely used across global markets, including Taiwan's power systems, transportation, government, and military communication networks. Their high reliability, stability, diverse access interfaces, and customizable interface card designs have reinforced the Company's leading position in the optical fiber transmission equipment market.

In addition to providing backbone network transmission capabilities, the Company's optical fiber multiplexer equipment is designed to prevent single points of failure, making it a critical component for ensuring the stable operation of transmission networks. Only network equipment with high fault tolerance and effective downtime risk reduction can guarantee continuous and stable service, delivering a truly reliable network experience.

However, with the advancement of telecommunications technology and the smartification of infrastructure, modern communication protocols can no longer be efficiently transmitted over traditional TDM (Time Division Multiplexing)-based networks. As these legacy networks approach the end of their service life and the availability of spare components diminishes, the industry is actively transitioning to the development of next-generation optical fiber telecom transmission equipment.

The migration from TDM to MPLS-TP-based Packet Transport Network (PTN) has become an inevitable technological evolution. Multiprotocol

Label Switching Transport Profile (MPLS-TP) integrates the advantages of packet switching with traditional transport network characteristics and is poised to become the mainstream technology for future carrier networks. Its operational layer is situated between Layer 2 and Layer 3 of the OSI model, commonly referred to as "Layer 2.5," and it supports label-switched paths, multi-service transport, and various physical layer technologies.

MPLS-TP technology offers the following features:

Incorporates transport-grade Operation, Administration & Maintenance (OAM) mechanisms, which effectively detect, identify, and locate user-layer faults. It also enables rapid protection switching in the event of link or node failures, thereby reducing maintenance costs.
Combines Layer 2 and Layer 3 protocols through a universal packet-switched transport technology.
Offers high network survivability and scalability.
Compatible with packet switching, TDM, and wavelength technologies, with a universal and distributed control plane architecture.

In summary, MPLS-TP is a core trend in the future development of network technologies. As such, the Company has developed the Loop-O9500 PTN and Loop-O9400 PTN transmission multiplexer devices, which represent a new generation of high-capacity fiber optic transmission network equipment. These devices are capable of simultaneously supporting two transmission networks within a single chassis, such as: Optical fibers synchronize the SDH/SONET transmission network and MPLS-TP packet switching transmission network to use as the applications of transmission backbone, and the equipment possesses add-drop, multiplex and de-multiplex functions that can support low-speed audio/data, Teleprotection interface, and the exchange capacity and other interface signal compilation and multiplexing of the high-speed STM-16/OC-48, STM-4/OC-12, STM-1/OC-3, DS3, E3, E1, T1, Ethernet, MPLS-TP PTN. It features 100G switching capacity and supports the aggregation of 10G and 1G Ethernet bandwidth interfaces for long-distance backbone transmission over optical cables. The transmission equipment system possesses protection systems and abilities, such as LSP 1+1/1:1 protection, provides the automated routing function and multi-service integration platform (PDH/SONET/SDH/PTN) to connect services of each point via the optical fiber interface, constituting the transmission repeater to complete, integrate, and accommodate various service interfaces, achieving data exchange requirements of different regions. The transmission equipment protocol and the protection system switching time is less than 50ms, which is fully in compliance with the structural specifications of the International Telecommunication Union (ITU): and in compliance with

the framework regulations set by the Internet Engineering Task Force (IETF). It is also in compliance with new generation synchronized transmission equipment technologies; the system provides complete applications for high-capacity optical fiber loop backbone networks and comprehensive solutions and is in line with the MCC market.

With the constant growth in the demand for high bandwidth and transfer capacity, equipment functions, and network management, the trend of optical fiber communication has been formed. Certainly, the Company will actively invest a great amount of R&D personnel to constantly develop new series products (i.e., G7800) and next gen 400G transfer capacity SDH to satisfy the enormous demand for communication equipment for the business opportunities in the market. The optical fiber communication industry is also expected to become a new star industry in Taiwan and the global MCC market.

In modern communication networks, the demand for data traffic and real-time services is increasing, and telecommunications operators and critical infrastructure operators have higher requirements for network reliability and continuity. In this context, Hitless technology emerges as a new type of network protection and switching mechanism, becoming one of the core technologies to ensure uninterrupted business operations.

Hitless technology refers to the ability to achieve seamless service transfer during network equipment upgrades, link switching, or fault recovery, reaching the objective of zero packet loss or near-zero packet loss. Traditional network switching may cause brief service interruptions during equipment failures or system upgrades, whereas Hitless technology effectively eliminates this risk through advanced redundancy mechanisms and real-time traffic synchronization.

The Company independently developed the Loop-O9500 PTN (MPLS-TP packet transport network multiplexer), featuring a PTN 10G module with a built-in Hitless protection mechanism for seamless switching. This ensures uninterrupted data transmission during equipment switching, link anomalies, or system adjustments.

This mechanism, through real-time traffic monitoring and pre-established backup paths, can automatically switch to the backup path in the event of a failure or performance degradation in the primary path without packet loss and without jitter impact, achieving the objective of zero service interruption.

In addition, the system supports various protection switching strategies (such as 1+1, 1:1 Protection) and rapid convergence capabilities, which can effectively enhance the overall network reliability and availability. This is particularly suitable for applications where communication quality is critically demanded, including:

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Hitless technology is widely applied in scenarios where communication reliability is highly demanded, such as:

Telecommunications core network: Ensure uninterrupted audio, data, and video services.
Smart grid and industrial control: Ensure continuous transmission of control signals and monitoring data.
Rail transport communication systems: Maintain uninterrupted train scheduling and safety communication.

Through Hitless technology, to ensure the continuity of voice, data, and real-time services, network operators and enterprises can effectively reduce operational risks caused by equipment switching or failures, enhancing overall network reliability and availability. This meets the high Quality of Service (QoS) and Service Level Agreement (SLA) requirements. Loop-O9500 not only reduces operational risks caused by network interruptions but also enhances the service level agreement (SLA) of critical services, meeting the communication needs for high reliability and high stability.

c. IP transmission equipment series products

The Company has launched Loop-IP6704/AM3440-E/G7860A TDMoIP, which can transmit T1, E1, and Voice signals on IP networks and IP6510, which can transmit IP data and Voice signals on PDH networks. For Loop-IP 6704/AM3440-E products, we have successfully developed the increase in multiple different interface channels and added TDMoIP function cards for Loop-AM 3440 and Loop-O 9500. The IP6704/AM3440-E DACS product combines FPGA-designed special TDM over Ethernet with TDM DACS, elevating the design complexity. It maintains its advantages by allowing product function upgrades and the uniqueness of customization, as well as enjoying the timeliness relative to time to market. The Company has always been attaching its attention to the development of new products. For the TDM over Ethernet product and equipment market, it is confident that it can develop products that compete with large-scale international companies; by doing so, it hopes to bring up the trend for the R&D capacity of the communication system industry in Taiwan to make further breakthroughs, and to secure a seat as a top-tier large-scale international company. In addition, the design of LOOP G7860A is the first network equipment of the Company that combines SDH/SONET, PDH E1, TDMoIP, Gigabit, Ethernet, POE/POE+, T3, Stackable, and IEEE 1588 V2 functions. The development of G7860A not only satisfies the functional requirements of 2G/3G/4G/5G telecom. With our R&D experience accumulated over two decades and the market penetration capacity of marketing in markets of over 80 countries, we decided to introduce the FPGA design to improve the flexibility for customization and functional upgrades of products in the future, which is the segregation with the design of large-scale companies at present. Due

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to the introduction of the FPGA design, we possess mobility, timeliness, and uniqueness of customization for the R&D of new functions in the future to satisfy the requirements of customers in the market. The Company focused on the R&D of CO-end and CPE-end equipment. For the R&D segregation, apart from placing the standardized IC into the design, as the existing standards and protocols are not sufficient for the application of actual circuits and functions, peripheral circuit designs and the innovation of FPGA system functions are required to be introduced. The Company adopted the existing standards as the foundation and introduced the peripheral circuit design to create new functionality and innovation breakthroughs. In addition, 61850 switch products for power are equipped with HSR/PRP modules of high availability and are compliant with the majority of the stringent and redundant requirements to ensure no data packet is lost and guarantee that goose data packets will arrive at their destination.

With the rapid development of networks, various emerging services such as Triple Play, Carrier Ethernet (CE), and FTTx have raised higher requirements for traditional packet transport networks. These include aspects such as investment costs, operation and maintenance costs, QoS assurance, service access, network scalability, reliability, and manageability. Compared to traditional transport networks like SDH/SONET, which lack a control plane and cannot meet these new demands, the Company's G7860A has been designed with MPLS-TP transport network capabilities and supports next-generation packet transport networks with packet service handling capabilities. The G7860A MPLS-TP packet transport network provides 80G switching capacity and supports 10G and 1G Ethernet bandwidth interfaces, enabling signal aggregation and multiplexing for long-distance transmission via optical cables as part of the backbone network architecture. This transmission equipment features multiple protection mechanisms, such as LSP 1+1 / 1:1 protection with automatic rerouting. It supports a multi-service integration platform that interconnects service locations via optical fiber interfaces, forms relay transmission paths, and integrates various service interfaces to meet data exchange needs across different regions. Its protocol and protection mechanism allow for switching times of less than 50ms, ensuring uninterrupted communication.

Since traditional transport networks have already established high standards in reliability and maintenance, MPLS-TP must be equipped with comprehensive OAM capabilities, which primarily include:

Fault Management
Performance Monitoring
Protection Switching

MPLS-TP OAM can monitor the forwarding and connectivity status of links in the network in real-time and provide a basis for network performance evaluation. When a link failure occurs, it assists operators in quickly switching to a backup path to maintain network stability and

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reliability.

The currently planned high-density managed rack-mount L2/L3 61850 switch will provide the flexibility required for applications. Users can choose between different 4/8 port modules and easily customize the device.

This layer 2 or layer 3 switch is designed specifically for substations, supports IPv4 static routing, RIP v1/v2, and OSPFv2. It is based on hardware-based IEEE1588v2 (accredited with nanosecond precision), making it one of the most reliable GMC backups. In addition, it incorporates Synchronous Ethernet (SyncE) and fully supports PTP Power Profile.

When configured with high availability HSR/PRP modules, it complies with the strictest redundancy requirements, ensuring no packet loss and guaranteeing GOOSE packets reach their respective destinations. Its high efficiency ensures no data packet loss and provides network redundancy self-recovery mechanisms under full load, allowing for the establishment of a reliable network through almost any redundant ring topology. This switch supports ITU-T G.8032 ERPS Ring, IEEE802.1D-2004 RSTP, STP, and MSTP, achieving network redundancy and providing intelligent functions such as Quality of Service (QoS), IGMP, and port mirroring.

There are two types of power input models available for selection. One is for low DC voltage (redundant 24-120VDC input), and the other is for higher voltage applications commonly found in distribution networks (redundant 110-240VAC, 24-120VDC, or 120-380VDC input). The additional 4x10GE uplink SFP slots make it suitable as the backbone of substations.

In modern enterprise and operator networks, network security, stability, and efficient transmission are key indicators. The IP6704A switch is equipped with advanced Port Isolation and Dynamic Congestion Recovery (DCR) technology, which can effectively enhance network security, reduce traffic interference, and ensure stable business operations.

Overview of Port Isolation Technology

Port Isolation refers to isolating traffic between different ports within the same network switching device, ensuring they do not interfere with each other. For corporate campus networks, Data Centers, or multi-tenant environments, Port Isolation can:

Enhance security: Prevent illegal access or attacks between different departments, tenants, or VLANs.
Reduce the risk of broadcast storms: Localized broadcast or multicast packets do not propagate across ports, reducing network congestion.
Protect critical services: Specific business traffic can exclusively occupy port resources to ensure stability.

In the IP6704A, Port Isolation supports flexible configuration, allowing for isolation management of individual ports or multiple port groups, and is compatible with security policies such as VLAN and ACL, achieving

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fine-grained network control.

Overview of Dynamic Congestion Recovery (DCR) Technology

DCR technology is a dynamic recovery mechanism designed for network traffic surges or congestion scenarios. Its core functions include:

Real-time congestion detection

The system can automatically monitor port and queue status to detect sudden traffic surges or congestion.

Intelligent traffic scheduling

When congestion is detected, DCR automatically adjusts traffic paths and reallocates buffer resources to reduce packet loss.

Rapid recovery

After congestion is cleared, the system automatically returns to the original transmission mode, ensuring optimized network throughput and latency performance.

DCR technology is particularly suitable for high-density Data Centers or multi-service mixed scenarios, ensuring that critical applications can still operate stably under high traffic impact.

Technology Integration and Application Value

IP6704A combines Port Isolation and DCR Technology, offering the following advantages:

Safe and Stable: Port Isolation ensures that different businesses or tenants do not interfere with each other, reducing the risk of internal attacks and broadcast storms.
Efficient and reliable: DCR can automatically adjust during sudden traffic surges to reduce packet loss and latency, enhancing network throughput.
Flexible deployment: Support VLAN, ACL, QoS, and other strategies to meet the needs of corporate campus networks, Data Centers, and multi-tenant environments.
Protect critical services: Even under high network load or attack circumstances, critical services can still operate stably, enhancing overall network availability.

The Port Isolation and DCR technology of IP6704A provides a secure, reliable, and efficient network transmission solution. It not only enhances network security and stability but also ensures business continuity in high-density traffic environments, making it an ideal choice for enterprise and operator network deployments.

d. Corporate grade network management and integration solution

Driven by the wave of global digital transformation, critical infrastructure networks are facing unprecedented opportunities and challenges. Whether it is transportation, energy, aviation, public safety, or critical industries like oil and gas, the resilience of network equipment has become a central focus of enterprise and government decision-making. Geopolitical conflicts and tensions further enhance the importance of information

security and network protection; meanwhile, the rise of artificial intelligence (AI) and big data technologies brings new innovative momentum to the Network Management System (NMS). These trends have not only changed the development direction of network technology but also reshaped the operational model of future critical infrastructure.

In the past, critical infrastructure networks centered around Time Division Multiplexing (TDM) technology, emphasizing connectivity and reliability. However, with the development of Packet Transport Network (PTN) and Multi-Protocol Label Switching (MPLS) technologies, network architecture is gradually shifting towards efficient packet-based transmission methods. This transformation brings three major advantages: (1) Enhanced bandwidth utilization, with packet-based transmission allowing for more flexible allocation of network resources; (2) Increased flexibility in service deployment, enabling enterprises to quickly configure and adjust network services; (3) Strengthened cross-domain integration capabilities, allowing IT and OT systems to seamlessly integrate, achieving end-to-end network monitoring and operation management. Moreover, these transformations also enable upgrades in network management system design, providing more flexible service deployment capabilities.

As cybersecurity threats become increasingly complex and diverse, the company has implemented various measures to address the challenges. In addition to adopting international security standards such as ISO 27001, IEC 62443-4-1, and FIPS 140-3, the Company has introduced security protection plans specifically designed for OT network administrators. These include mechanisms for preventing single points of failure in DCN (Data Communication Network) management channels, security gateway devices integrating SPI, IDS, IPS, and DPI functions, and integrated network management solutions compliant with international cybersecurity regulations. These measures effectively enhance the resilience of critical infrastructure networks, ensuring stable business operations while reducing the impact of network interruptions on operations and capital expenditures.

The Company's third-generation network management system follows the logical layered network management architecture established by ITU-T, considering traditional TDM network management, and integrates diverse PTN/MPLS next-generation network equipment such as G7800, G7820, G7860A, O9400R/PTN, O9500R/PTN, and AM3440/CCPB. The system can not only monitor equipment status but also ensure the safety of network information communication. Its core technologies include: end-to-end service planning and automated circuit provisioning, advanced and rapid network diagnostics, and micro-segmentation technology based on information and communication security. This transformation requires network management personnel to be familiar with the technological evolution from TDM to PTN and MPLS-TP, enabling customers to achieve effective upgrades on existing network infrastructures, reducing

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equipment replacement costs while enhancing the quality and efficiency of service execution.

In the past, the Company successfully deployed the iNMS/iNET network management system products in over 50 countries worldwide. With the rapid development of AI technology and big data analysis, the Company is introducing artificial intelligence into the network management system to build an AIOps intelligent operations platform that integrates data mining, machine learning, and big data analytics. The platform can integrate isolated operational data, achieve network management visualization, accelerate collaborative network control, and enable proactive issue response with precise predictive analysis. Through AI-driven intelligent operations, network administrators can manage complex networks with less manpower and Time, proactively prevent failure risks, and comprehensively optimize network performance.

Global critical infrastructure networks are moving towards achieving precise operational and maintenance intelligent management through AI and big data, establishing enhanced information security protection mechanisms that meet international standards, and improving the core competitiveness of network management systems in cross-system collaboration and IT/OT integration. The evolution of network technology provides businesses with a flexible and reliable network foundation. In the future, the Company will continue to expand applications in critical fields such as transportation, aviation, energy, military, and public safety. Through the implementation of cybersecurity plans, the introduction of AI intelligent technologies, and the integration of MPLS products, we will assist clients in meeting the challenges of digital transformation, enhancing network management resilience, and improving operational efficiency. In the future, the Company's network management system products will continue to expand applications in critical infrastructure fields. Through the implementation of cybersecurity plans, the introduction of AI intelligent technologies, and the integration of MPLS products, we will assist clients in meeting the challenges of digital transformation, enhancing network management resilience, and improving operational efficiency.

e. 5G base station transmission equipment

With the global wave of artificial intelligence (AI) and the explosive growth of high-performance computing centers (Data Centers), there is an urgent need for infrastructure to ensure the stability and efficiency of power supply and dispatching. The Company has deeply observed the trends in power energy transformation and smart grids, providing the critical utility market with industrial communication equipment characterized by "high intelligence and strong resilience." This is to meet the stringent technical requirements of large-scale energy monitoring and power feedback in the AI era, ensuring the stable operation of energy networks under digital transformation and high-load environments.

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In terms of technological advancement, The Company has successfully developed switches with MPLS-TP 10G carrier Ethernet technology and has enhanced the technology for specific applications in fields such as power and transportation. By supporting IEEE 1588 PTP precise Time synchronization technology and PRP/HSR seamless redundancy protocols, ensure deterministic transmission at the microsecond level for power system protection relays and traffic signal control. In addition, by integrating AIoT edge computing capabilities, the switch is not only a data transmission node but also features self-diagnostic, traffic forecasting, and equipment maintenance analysis functions. In addition to the robust wired backbone, the new generation 5G CPE equipment developed by the Company further extends the accumulated technical experience in the optical communication domain to wireless private network applications. The equipment not only provides high-speed Ethernet services but also has strong integration capabilities, supporting customers' existing needs for voice, traditional dedicated lines, and industrial control transmission. Facing increasingly severe threats to critical infrastructure networks, Information Security (Cybersecurity) is the cornerstone of this plan. The Company's industrial switches comply with IEC 62443 international information security standards, implementing security architectures at the hardware level such as physical isolation and hardware encryption/decryption (MACsec) to prevent malicious lateral movement and protocol tampering. In response to future security requirements, we are actively positioning ourselves with post-quantum cryptography (PQC) technology. This assists clients in constructing a defense system capable of resisting next-generation cybersecurity attacks during the long-term maintenance and operation of critical assets, becoming the strongest bridge connecting stable power infrastructure and fully packetized secure networks.

C. Estimated completion progress of the unfinished R&D plan

Project	Estimated completion time
G7800_32TE1	Estimated to complete the development in March 2026
WDM1800-C_1U	Estimated to complete the development in April 2026
G7800_B2G5 oc12 FPGA	Estimated to complete the development in April 2026
G7800_CC4M Phase 1	Estimated to complete the development in July 2026
G7800_GFET POE MPSOC- HW	Estimated to complete the development in September 2026
G7800-POE-E	Estimated to complete the development in October 2026

Other major factors that affect the success of the R&D regarding the R&D plans in the above table are as follows:

a. Adopt accurate market strategies and accuracy evaluation to align with the requirements of major customers.

b. Provide customization functions in accordance with the demand in the market to satisfy the requirements of major customers.
c. Increase R&D human resources and improve the excellent R&D technologies of the Company to build a stable and healthy R&D team.
d. Duly introduce the IBM system to effectively control the development progress of products so as to complete the development based on the existing budgets and the target timeline required by customers, ensuring the time to market of our R&D achievements.

D. R&D expenses expected to be invested in the following three years

(In Thousands of New Taiwan Dollars)

Item/year	2025	2026	2027
Net revenue (the Company did not disclose its financial forecast)	Not applicable	Not applicable	Not applicable
Research and development expenses	167,185	175,544	184,321
Ratio of R&D expenses to net operating income	Not applicable	Not applicable	Not applicable

E. Current progress of uncompleted R&D plans and R&D expenses required to be invested:

Project	Commencement date of plan	Initial completion date	Estimated completion date	Current completion progress
G7800_32TE1	2025/5/12	2026/3/31	2026/3/31	98.50%
WDM1800-C_1U	2025/10/7	2026/4/29	2026/4/29	96.50%
G7800_B2G5 oc12 FPGA	2025/12/22	2026/4/29	2026/4/29	99.60%
G7800_CC4M Phase 1	2025/4/21	2026/7/9	2026/6/26	66.90%
G7800_GFET POE MPSOC-HW	2025/12/1	2026/9/29	2026/9/29	22.40%
G7800-POE-E	2025/3/3	2026/10/9	2026/8/17	61.50%

F. Major factors and risks affecting the success of R&D in the future

Item	R&D plans in the most recent year	Major factors affecting the success of R&D
1	G7800_32TE1	a. New software and architecture design b. New mechanism/platform c. Manpower management
2	WDM1800-C_1U	a. RD debug skill b. Manpower resources
3	G7800_B2G5 oc12 FPGA	a. New Software and Architecture design b. Manpower management
4	G7800_CC4M Phase 1	a. New software and architecture design b. Manpower management c. Highly experienced and technically proficient engineers with strong domain knowledge
5	G7800_GFET POE MPSOC-HW	a. Manpower resources b. RD debug skill

Item	R&D plans in the most recent year	Major factors affecting the success of R&D
6	G7800-POE-E	a. RD technical and background knowledge experience
b. RD debug skill
c. Manpower resources.
d. New mechanical and architecture design

(4) Long-term and short-term business development plans:

A. Development of long-term and short-term business a.

a. Development of short-term business

a-1 Products and services:

The short-term development is primarily order production. The Company continues to make improvements and adopts customers' requirements as the core to developing new products with high added value. In terms of technologies, we will establish technological capacity for our self-owned brands, reinforce the R&D of products and software with high gross profits, and expand regional and other industrial development to effectively grasp business opportunities.

a-2 Finance:

The consolidated revenue of the Company throughout the year was NT$677,719 thousand, with a net income of NT$195,605 thousand, and earnings per share were NT$3.45. The benefits of focusing on the Taiwanese market have been recorded, together with the constant reinforcement of internal management and optimization and reformation of the organization of the Company; the Company will improve its efficiency and continue to explore new customers, new products, and the SI market, to allow its overall profit margin to achieve 60% or above. We maintained favorable performance in terms of financial structure, solvency, accounts receivable turnover, and other financial indicators.

a-3 Investment:

In 2013, Loop Telecom commenced its strategic transformation, strongly promoted mission-critical solutions, and successfully entered multiple domestic and foreign markets in recent years. As the bandwidth hungry applications in the mission-critical communication (MCC) network continued to increase TDM-based network backbone is gradually replaced by Packet-based one. Facing the transition period from existing technologies to new technologies, the provision of the new generation packet transport network technologies and concurrently accessing the existing legacy services have become the solutions most required by MCC users. Loop Telecom offers a product line that includes over 60 products. In response to the aforementioned demands, the Company has in recent years focused on developing new products such as the flagship Loop-G7800, a next-generation PTN high-bandwidth

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multi-functional transmission access device. Additionally, it has launched hybrid service multiplexer equipment including the G7860A, WDM1800, O9400-PTN10G, and O9500-PTN10G. Meanwhile, it also upgraded the access service product line (AM3440-CCPB, IP6704A, and G7820) and developed Loop proprietary ultra-low latency and zero-packet-loss protection switching technologies to solve two major hindrances faced by MCC users in terms of the packet transport network. Combining the network management system with point-to-point circuit management capability, creating more than a dozen overall solutions from MCC backbone networks to access terminals for customers.

b. Long-term business plan

In the future, we will reinforce the development capacity for new products, improve product R&D efficiency, and shorten the development time of products. Also, we will promote the logo of Loop's self-own brands. Apart from satisfying the functional requirements of customers for products, we may continue to maintain the high added value of product customization, avoiding price competition within the industry. America, the EU, and the Taiwan markets all performed well, while Southeast Asia experienced a slight decline. Meanwhile, we will enhance our ODM and OEM operations by focusing on major customers, and we intend to actively secure cooperating opportunities with major customers in the future. In terms of industry, electricity and government agencies account for about 70% of the total revenue, while the communication and transportation markets have shown an 81% growth due to the development and application results of new products. To expand our operations, we have also entered the oil industry, power industry, public utilities, and private enterprises. For example, Taiwan Railway, HK MRT, India railway, India power, European power, oil and natural gas, Shell Oil Company, Basin power, Internexa, and other relevant industries. The Company will continue to expand its overall marketing channels and improve its production and marketing integration capacity and put new products into mass production to continue to contribute to the future profits of the Company.

Moreover, based on the tender cooperating model, the Company continues to cooperate with large-scale international companies and SI companies of different marketing countries and provide customized designs as advantages to secure new tenders. Implement the R&D model of Time to Market and enhance the application systems to provide integrated services to customers, which not only provides single products to customers but also provides integrated application service consultation, improving the cooperating relationships with customers and the development of new ODM customers.

It is estimated that the global macroeconomic environment will improve

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successively. With our existing basis, the Company will strive to improve its marketing, R&D management, production management, and competitive strength in other aspects. At present, the Company has 27 product lines and has business dealings with 41 countries; our operations are market demand-oriented. Apart from the communication industry, the Company will continue to actively explore power, transportation, oil, natural gas, banks, governmental agencies, and other relevant communication markets, grasp business opportunities, and create a favorable performance.

2. Overview of market and production and marketing

(1) Market analysis:

A. Sales regions of main products of the Company

80% of our revenue was from 15% of countries having dealings with us. Exports accounted for about 75% of the annual revenue. America, the EU, and the Taiwan markets all performed well, with the Southeast Asian market showing significant growth.

Unit: (In Thousands of New Taiwan Dollars)

Year		2023		2024		2025
Sales region		Sales amount	%	Sales amount	%	Sales amount	%
Domestic		204,480	32	161,237	25	150,061	22
Overseas	America	118,741	18	234,419	36	181,252	27
	Europe	209,894	32	177,650	27	224,409	33
	Asia	87,222	14	61,516	10	94,668	14
	Others	28,760	4	15,129	2	27,329	4
	Subtotal	444,617	68	488,714	75	527,658	78
Total		649,097	100	649,951	100	677,719	100

B. Market share and the supply/demand in the market and the potential of growth in the future

The product sales in the main market of the Company in 2024 and 2025 and the future insight into the market sales are as follows.

a. Sales (provision) region of major products (services):

Region/year	2024	2025
Domestic	25%	22%
Asia	10%	14%
America	36%	27%
Europe	27%	33%
Others	2%	4%
Total	100%	100%

b. Market share:

The Company is a dedicated communication network equipment manufacturer, and the overall products account for approximately 0.05% of the market share of the overall production value of the communication industry in Taiwan. The sales ratio of main products throughout the year and the domestic market share of communication equipment are as follows: PDH series 23%/0.017%, SDH series 11%/0.008%, iNMS 5%/0.004%, MPT series 45%/0.032%, and others 15%/0.011%.

c. Insight into the demand/supply and growth potential of the market in the future

Since 2021, the output value of communications in key areas such as power utilities, transportation, and air traffic control has shown steady growth in various countries. It is expected that by 2025, driven by the demand for resilient infrastructure, this growth will continue to expand. Despite global challenges such as geopolitical risks, supply chain fluctuations, and a high inflationary environment, the critical infrastructure market still exhibits strong resilience. Its operational focus is shifting from "basic connectivity" to "high availability, physical isolation, and ultimate security," further driving upgrades in backbone optical transmission networks and access points.

At the equipment level, there is a significant increase in demand for dense wavelength division multiplexing equipment (DWDM), packet transport networks (PTN), industrial-grade switches, and high-level L2/L3 switches for large-capacity transmission. The development of key technologies is directed towards strategic layouts that include precise Time synchronization (IEEE 1588/PTP), Hitless Protection technology, security enhancement, quantum encrypted communication, and edge computing integration. This ensures ultimate reliability during high-speed transmissions, proactive defense, microsecond-level deterministic latency, and deep IT/OT integration as core demands. It drives the entire optical communication industry towards "autonomous, intelligent, and resilient" platform architectures to meet the stringent challenges of next-generation mission-critical communication systems such as smart grids and rail automatic driving.

C. Competition advantages, favorable and unfavorable factors in the long term, and countermeasures

a. Competition advantages

The Company focuses on the development of communication and telecommunication systems. With over three decades of R&D experience, the Company is one of a few companies with vertical R&D capacity from downstream to upstream and is the only local provider of overall solutions for the backbone networks of telecommunication transmission in Taiwan. Products developed by Loop Telecom include communication transmission technologies of 64Kbps in the early stage to PDH, SDH, and to the latest PTN technologies. It has accumulated over 100 types of

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communication interface cards and over 50 kinds of products of different categories. By adopting the integrated network management system in traditional Chinese that we developed, we integrated hardware, software, equipment, and network management and became a reliable provider of integrated solutions for communication and information systems.

Our communication system integration solutions have spread across Europe, America, Australia, Asia, and other countries, proving that our reliability, stability, and durability are recognized and supported worldwide.

The international competition will only become more intense and fast. Facing the challenges in the competitive environment, the Company will strive toward reducing production costs, leveraging on the advantages it possesses in terms of technologies to expand its sales rate and market share of its products so as to improve its profits in due course. Looking ahead, the Company will continue to focus on launching the following products and services: (1) Optical communication equipment: Integrate PTN and SDH/SONET platforms to provide total solutions. (2) IP transmission equipment: Combine the L2/L3 Ethernet access transmission and carrier Ethernet (including CE and MPLS-TP) technologies to develop the next-generation G7860A and G7820 transmission network equipment. (3) IP/TDM Hybrid equipment: Combine abundant existing terminal equipment interfaces and applications, the Company will continue to improve the emulating bridging and virtual network equipment of IP67xx series and TDM over Ethernet and widely apply relevant technologies on the hybrid card equipment of the Company. (4) 5G communication transmission equipment: Based on technologies and experience accumulated for 3G/3.5/4G base station, the Company has completed WDM1800 and MPLS-TP 10G carrier Ethernet equipment and has been actively making arrangements for 5G communication technologies. (5) Comprehensive network management system: In response to the newly launched MPLS/CE PTN and innovative products based on PWE3 technologies to provide point-to-point business planning, circuit building, business diagnosis, flow engineering, QoS, and other advanced network management functions. (6) Next-generation corporate office LAN: Integrate self-owned products of the Company, relevant information safety software/hardware equipment, IIoT solutions, and A.I. to assist customers in building office network system structures that satisfy information safety, the physical safety of assets, and office environment safety.

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ODM cooperation with the Company, and development of the next-generation switch solution has already commenced. At the same time, the commercialization of cybersecurity solutions is being expedited to enter the market and generate revenue as soon as possible, with a strong emphasis on promotion and effective management. Loop Telecom will expand its market presence by actively participating in major communication exhibitions held worldwide and organizing product seminars. Through showcasing the performance and features of new Loop products, the Company aims to increase exposure and enhance brand visibility.

b. Favorable factors:

b-1 Finance: The financial structure, solvency, operating ability, profitability, cash flow, and other financial ratios are above the general level within the industry.

b-2 Market: There are 41 countries having business dealings with the Company worldwide last year. Exports accounted for about 75% of the annual revenue. America, the EU, and the Taiwan markets all performed well. In terms of industry, electricity and government agencies account for about 70% of the total revenue, while the communication and transportation markets have shown an 81% growth due to the development and application results of new products. In 2025, approximately 80% of the revenue came from 15% of the countries we engaged with; among all 27 product lines, about 80% of the revenue was from 15% of the sales product lines. With the good prospects of the communication market, Loop Telecommunication has long cooperated with international SI factory. Europe and the United States are expected to continue to grow and the domestic market has entered the next stage of development. The Southeast Asian market has been on recovery one by one and we have continue to develop emerging markets. Our active developments of next generation communication technology to flexibly meet customer demand will be regarded as the growth momentum under the new trend.

c. Technology:

With over three decades of R&D experience accumulated, the Company integrated multiple service interfaces of PDH, SDH fiber technologies, Ethernet router technologies, and MPLS technologies as a comprehensive network solution. It included the cross-field and cross-company product integration into the Company's network system to directly face end users (i.e., electric power communication and military network of the government), directly cooperate with large-scale international SI companies (i.e., NEC), and directly cooperate with IoT customers (i.e., power plants, public transport, and governmental agencies) to develop new products in the hope of providing popular products and comprehensive solutions under the trends of the IoT industry.

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Facing the intense situation of the trade war between the U.S. and China and uncertainties derived from the war and geopolitics, the economic environment became challenging. 5G brought about the digital transition of all industries, giving rise to a new wave of evolution within the network industry and to business opportunities of new technologies and new applications. Based on the existing foundation, the Company continues to reinforce its management and makes constant efforts by adhering to the philosophy of continuing to develop new products and explore new markets.

With the successful R&D experience of 3G/4G and in response to the requirements of 5G communication in the future, the Company has also been actively developing optical fronthaul series products (i.e., OBSAI, CPRI, and other DWDM series products).

Facing the transition period from existing technologies to new technologies, the provision of the new generation packet transport network technologies and concurrently accessing the existing Legacy services have become the solutions most required by MCC users. Loop Telecom offers a product line that includes over 60 products. In response to the aforementioned demands, the Company has in recent years focused on developing new products such as the flagship Loop-G7800, a next-generation PTN high-bandwidth multi-functional transmission access device. Additionally, it has launched hybrid service multiplexer equipment including the G7860A, WDM1800, O9400-PTN10G, and O9500-PTN10G. Additionally, we have developed our own ultra low latency zero packet drop protection switching technology for the access service product line (AM3440) to solve two major hindrances faced by MCC users in terms of the packet transmission network. Combining the network management system with point-to-point circuit management capability, creating more than a dozen overall solutions from MCC backbone networks to access terminals for customers. Such solutions may be used in domestic and foreign power company, transportation, airport, and military markets. They will have material contributions to our revenue in the following years.

From R&D to production, and to market branding, the Company has transformed from a pure product supplier to a contractor of solutions and stands out as a professional manufacturer in Taiwan. The Company has gained recognition of extensive users and ODM orders with large-scale international companies in the intensive global competition, and its strong software/hardware capacity is unlikely to be plagiarized or duplicated.

d. Management:

The Company has an outstanding R&D leader and R&D management team and has introduced internationalized CQ, RPM, CAR, and CCT systems of IBM for the progress follow-up of projects and human resource and working hour management of the R&D Department so as to effectively grasp the procedures and resource allocation of different

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projects on a timely basis.

D. Unfavorable factors:

a. Finance:
The export sales market accounts for over 75% of the Company's revenue. Any intense fluctuation of the exchange rate of NTD will cause considerable exchange effects.

b. Market:
Due to the trade war between the U.S. and China and changes in international situations, the growth in the emerging market recorded was less favorable than expected. Furthermore, the transition of communication technologies and the conservative market affected the Company's operating performance. Facing the changes in the market, the Company has transformed from a pure product supplier to a contractor of solutions, which will have material effects on the contributions to its revenue in the future.

c. Countermeasures:
c-1 When providing quotes to export sales, the Company also considers the development of exchange rates to minimize the level of impacts of the fluctuation of exchange rates on the profits of orders accepted, engages in quotations of multiple currencies based on the circumstances, and uses strong currencies for trading to avoid possible risks.
c-2 Facing the competition between enterprises and within the environment, the Company continues to observe market requirements and develop functional and differentiated products. To maintain the competitiveness of its new products and break through the resource restrictions of new product development, the Company will call for more outstanding talents in the future to carry out R&D and innovation and reduce operating costs.
c-3 In light of the global economic development, the Company continues to develop new markets and combinations of different industrial patterns and new products. In the future, the Company will fully invest in performing the market pattern of "solution provider," focus on the requirements of major customers and the application requirements in the future market, and provide comprehensive and integrated transmission systems for customers' use. Furthermore, the Company strives for ODM opportunities with large-scale international companies and seeks concepts and targets for the development of new products. It will closely combine the strategies of new products under development and the practices of product development management procedures and adopt product specifications and expected benefit audits that are in line with the market requirements as the foundation to improve the success rate of product development and profitability.

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(2) Main use of major products and their manufacturing procedures:

A. Main use of major products

AM3440 may be used in telecommunication, railway communication, electric power communication, hydraulic communication, traffic communication control, security systems, and automated control communication; the main use is as follows: a.

a. E1 multiplexer used for TDM E1/T1 network transmission.
b. Point-to-point video conference (V.35 or Ethernet interface).
c. Environment monitoring (dry contact or Ethernet interface) i.e., door alarm and video surveillance.
d. Auto-control (RS232 interface), such as: SCADA system, automation control, and traffic light control.
e. Audio, data, and Ethernet transmission.
f. Teleprotection/SCADA applications.
g. Teletra wireless transmission applications.
h. E1 DS0 SNCP is used in police/fire control/emergency relief systems.
i. RS232 radar clock transparent transmission is used in airborne radar.
j. ECA is used in echo cancelation for transformation from 2-line to 4-line transmission of audio circuits.
k. ABRA is used in the point-to-point transmission of analog audio modems of the power category.
l. 6UDEA/8UDTEA is used in banking and SCADA.

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B. According to the operating specifications of ISO9001, the production procedures of the Company are as follows:

Small-amount production:

Mass production procedures:

(3) Supply of main raw materials

Products produced by the Company are composed of many parts and components that we purchased from extensive counterparties; therefore, the Company only enters into long-term supply orders for crucial parts and components. Raw material procurement of the Company is relatively dispersed, and there is no risk of overly concentrated sources. The Company has always maintained favorable cooperating relationships with suppliers, and the level of cooperation of suppliers is high; therefore, the supply status in the most recent three years remained healthy, and there was no supply shortage or interruption in the past three years. The supplying status of major raw materials of the Company at present is set out in the following table:

Main raw materials	Main supplier	Supplying status
PCB	Kintech and Circuitech	Favorable
IC	Avnet and WT Microelectronics	Favorable
Power supplier	Universal Microelectronics, Sheng Ji	Favorable
LCD	SDEC Technology and Winstar Display	Favorable
Cable	Yuh Chieh and Goal Ray	Favorable
Connector	OUPIIN Enterprise and Beihong	Favorable

(4) List of customers accounting for $10\%$ or above of the Company's total purchases (sales) in any of the most recent two years and purchases (sales) amount and ratio, and the descriptions of the reasons for the changes:

A. Information on the major supplier for the most recent two years
Unit: (In Thousands of New Taiwan Dollars)

	2024				2025
Item	Name	Amount	Ratio to net purchase throughout the year [%]	Relationship with the issuer	Name	Amount	Ratio to net purchase throughout the year [%]	Relationship with the issuer
1	Avnet	19,460	18.40	None	WT Microelectronics	41,199	25.62	None
2	WT Microelectronics	17,834	16.87	None	Kintech and Circuitech	12,240	7.61	None
	Others	68,437	64.73		Others	107,345	66.76
	Total net purchase	105,731	100.00		Total net purchase	160,784	100.00

Description: There has been no material change in suppliers, with a total purchase reaching $10\%$ or above in the most recent two years; therefore, the Company has no intention to analyze.

B. Data on major customers of sales for the most recent two years:
Unit: (In Thousands of New Taiwan Dollars)

	2024				2025
Item	Name	Amount	Ratio to annual net sales (%)	Relationship with the issuer	Name	Amount	Ratio to annual net sales (%)	Relationship with the issuer
1	E	208,763	32.12	None	E	159,422	23.52	None
2	F	90,884	13.98	None	A	129,402	19.09	None
3	A	79,150	12.18	None	C	89,442	13.20	None
	Others	271,154	41.72		Others	299,453	44.19
	Total net sales	649,951	100.00		Total net sales	677,719	100.00

Note: Specify the name of customers who contribute to $10\%$ of total sales or above in the most recent two years and their sales amount and ratio; however, code names may be used instead if the name of customers may not be disclosed due to agreements in the contract or if the counterparties are individual and not related parties.

The number of employees for the most recent two years and up to the date of publication of the annual report, their average years of service, average age, and education distribution ratio:

March 31, 2026

Year		2024	2025	Current year as of March 31, 2026
Number of employees	Indirect staff	142 persons	136 persons	137 persons
	Direct staff	17 persons	16 persons	16 persons
	Total	159 persons	152 persons	153 persons
Average age		43.40 years old	44.70 years old	44.79 years old
Average service seniority		12.05 years	13.34 years	13.32 years
Education background distribution ratio	PhD	1.26%	1.32%	1.31%
	Master degree	27.67%	28.29%	28.76%
	College diploma	57.87%	57.89%	57.51%
	Senior high school	9.44%	8.55%	8.50%
	Below senior high school	3.76%	3.95%	3.92%

Information on environmental expenditure

Any losses suffered by the Company in the most recent year and up to the publication date of the annual report due to labor disputes (for any compensation and violation of environmental protection regulations found in the environmental protection audits, specify the disposition dates, disposition reference numbers, the articles of law violated, the substance of the legal violations and the content of the dispositions), and disclose an estimate of possible expenses that could incur currently and in the future and countermeasures; if it is not able to be reasonably estimated, the fact that it cannot be reasonably estimated shall be specified:

The Company focuses on the conservation of environments and received the excellent environmental cleanliness and recycling inspection award of the Park in October 1999. It formally announced its environmental policies in 2004 in the hope of improving the environmental protection awareness of employees, suppliers, and channel providers and reducing the impacts of operations on environments through internal and external education and promotion. Over the years, Loop Telecom has been adhering to the operating philosophy of sustainable corporate development and has deeply recognized the importance of environmental protection; therefore, the Company adopts pollution prevention and continual improvements as its basic structure for development.

Commitments of Loop Telecom: The Company will: $\spadesuit$ make the best use of resources on earth; $\spadesuit$ develop products of green concepts; $\spadesuit$ improve procedure technologies and minimize impacts on the environment; $\spadesuit$ comply with the requirements of environmental regulations; $\spadesuit$ commit to pollution control and continue to improve the current status of

environments; ♦ implement environmental protection education; ♦ appropriately carry out environmental communication to create an enterprise of sustainable development. For the processing of waste, the Company has its SOP in place; there was no environmental pollution event; therefore, there was no loss, and there was no pollution to the environment.

5. Labor-capital relations

(1) Welfare measures, continuing education, training, and retirement systems of employees and their implementation, and the labor-capital agreements and measures for protecting employees' interests:

A. Employee benefit measures

The Company has comprehensive and favorable benefit measures; major items include:

a. Insurance:

a-1 Labor insurance and National Health Insurance:
Employees of the Company participate in labor insurance and National Health Insurance according to the law.

a-2 Group insurance:
Formal employees of the Company are entitled to the group insurance purchased by the Company on behalf of employees after three months from the day reporting to work, and the premium is borne by the Company. Employees are entitled to different coverage based on the range of salaries.

b. Educational training program:
Based on the training demand of employees, the Company organizes new employee training, professional technology training, management talent training, self-development training, quality management training, safety and health, and other training programs and provides comprehensive professional skills cultivation and self-growth and development for employees.

c. Profit-sharing and share ownership method:
The Company shares a fixed ratio of its earning after the final account of the year, with relevant taxes, reserves, and dividends deducted, with all employees.

d. Bonus system:
The bonus system of the Company has performance bonuses and evaluation bonuses, and the distribution basis of bonuses is the performance of employees within a certain period.

e. Domestic/foreign company trip:
A domestic or foreign company trip for employees is organized once a year.

f. Employee dormitory:
The Company has an employee dormitory allocated by the Park Bureau for new employees and general employees as the residence so as to fully care for employees.

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g. Leisure equipment:
The Company has a table tennis room, gym, yoga classroom, library, reading area, and other facilities to provide the best activity venues for employees to dine and chill.

h. Employee Benefits Committee:
The Company has established its Employee Benefits Committee according to the law and appropriated benefit funds as scheduled according to the requirements. Members of the committee are publicly elected by employees, and the committee organizes various benefit activities.

B. Employee training, continuing education system, and its implementation:
Employee educational training expenses:
a. Onboarding training for new employees: Include the introduction to the Company's system, corporate culture, organization, and operating system, an introduction to system operation, a description of job scope, new product development procedures, and professional knowledge training and succession.
b. In response to the development of the business and management system, the Company enhanced its talent cultivation and improved human resources structure and the quality of human resources; therefore, it established the "Procedures for Educational Training" observation by employees. The Company provides subsidies and funding for educational training each year for employees to choose internal training or external training related to their own work. Employees may combine the development of their abilities with hobbies to maximize the learning effects; the content is summarized as follows:
b-1 Internal training: For new R&D personnel, the Company arranges senior R&D personnel to provide guidance to pass down the R&D experience and fully invest in product and technology R&D and allows them to learn the latest communication technologies through technical exchanges with the industry sector. For administration-related personnel, their knowledge, abilities, and aspiration are improved based on their working field, and professional lecturers are also invited to visit the Company for training from time to time.
b-2 External training: The Company encourages employees to participate in professional seminars and appoints them to receive training from domestic and foreign professional training institutions.

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Relevant educational training performance in 2025 Year is set out in the following table:

Item	Number of classes	Total number of persons	Total number of hours	Total expenses
1. New employee training	6	29	33	0
2. Professional function training	50	330	609	161,450
3. Management talent training	2	2	24	16,000
4. General knowledge training	10	497	511	7,450
Total	68	858	1177	184,900

Continuing education of managers in 2025 Year

Title	Name	Date	Organizer	Course name	Number of hours of continuing education
President	Yeh Maw-Lin	2025/12/19	Taipei Financial Research and Development Foundation	Looking Ahead to 2026: Key Indicators and Trend Analysis in International Political and Economic Contexts	3
Director of the Finance and Accounting Department	Chang Xiao-Ling	2025/1/13~2025/1/14	Accounting Research and Development Foundation	TWSE chief accountant continuing education course for issuers and securities firms (online class).	12
	Chang Xiao-Ling	2025/2/12	Yuanta Securities Co., Ltd.	2025 Annual Shareholders' Meeting Special Lecture	4
	Chang Xiao-Ling	2025/4/16	Deloitte & Touche Taiwan	Deloitte Northern Region 2025 First Seminar	3.5
	Chang Xiao-Ling	2025/5/8	Export-Import Bank	Description of the seminar on financial support measures in response to U.S. tariff policies for manufacturers	3.5
	Chang Xiao-Ling	2025/8/21	Deloitte & Touche Taiwan	Deloitte Northern Region 2025 Second External Seminar	3.5
	Chang Xiao-Ling	2025/11/3~2025/11/4	Accounting Research and Development Foundation	TWSE chief accountant continuing education course for issuers and securities firms (online class).	12
Chief of corporate governance	Cai Xing-Juan	2025/5/16	The Allied Association for Science Park Industries	Shareholders' meeting, management rights, and equity strategy	3
	Cai Xing-Juan	2025/5/20	The Allied Association for Science Park Industries	Workplace bullying and workplace sexual harassment.	3

Title	Name	Date	Organizer	Course name	Number of hours of continuing education
	Cai Xing-Juan	2025/6/18	Cathay United Bank	Corporate Governance Lecture for Directors and Supervisors in the First Half of 2025	3
Chief auditor	Hsiao Chen-Ho	2025/3/12	Taiwan Stock Exchange	2025 Corporate Governance Evaluation Promotion Briefing	4.5
	Hsiao Chen-Ho	2025/3/26	Accounting Research and Development Foundation	How to apply Robotic Process Automation (RPA) to enhance the effectiveness of internal control (video lecture)	6
	Hsiao Chen-Ho	2025/4/16	Deloitte & Touche Taiwan	Deloitte Northern Region 2025 First Seminar	4
	Hsiao Chen-Ho	2025/6/12	The Institute of Internal Auditors-Chinese Taiwan	Practical Audit Techniques	6
	Hsiao Chen-Ho	2025/8/15	The Institute of Internal Auditors-Chinese Taiwan	Discussion on "Sustainable Information Management" and Key Practices of Internal Control and Internal Auditing	6
	Hsiao Chen-Ho	2025/8/21	Deloitte & Touche Taiwan	Deloitte Northern Region 2025 Second External Seminar	4
	Hsiao Chen-Ho	2025/10/31	Yuanta Securities Co., Ltd.	Corporate Governance and Sustainability Disclosure Special Lecture in Q4 2025	4
	Hsiao Chen-Ho	2025/12/8	Taiwan Stock Exchange	2026 Year ESG Evaluation Promotion Meeting	4

C. Employee retirement system and its implementation:

Employee retirement system: The retirement system of the Company is subject to the Labor Standards Act and Labor Pension Act.

D. Labor-capital agreements and measures for protecting employees' interest: Labor-capital agreements: Employees of the Company have premium quality, and our business philosophies and management policies are duly implemented. In addition, there is employee communication/activity time and the "Employee Benefits Committee" in place. The internal communication channels are smooth, and the labor-capital relations over the years have been healthy; there has been no labor-capital dispute.

E. Code of Conducts or Ethics of Employees: Please refer to The Company Website.

F. Protection measures for employees' personal safety and working environment and their implementation:

The Company has established an "Occupational Safety and Health Management Committee" in accordance with the provisions of the Occupational Safety and Health Management Measures. This committee is jointly composed of occupational safety and health personnel, relevant department supervisors, and labor representatives.

Singtel Information has established the "Occupational Safety and Health Regulations," clearly outlining its commitments and objectives. These regulations cover risk assessment, incident management, health services, and continuous improvement, with regular internal and external audits and evaluations to ensure the system operates effectively.

In accordance with regulatory requirements to ensure the safety and health of employees in the workplace, and to enhance and ensure that they acquire the necessary knowledge for work and disaster prevention, the Company provides 6 hours of occupational safety and health education and training for new employees, and conducts training every three years for current employees. In addition, the Company's Information Fire Safety Management Committee holds one fire safety review and conducts two fire drills annually, which include scenarios such as earthquakes and occupational safety and health. In addition to the relevant drills held internally by employees and the building, joint defense exercises are also conducted in cooperation with the Hsinchu Science Park Bureau.

To enhance employees' physical and mental health, a nurse is scheduled weekly and an on-site service physician is arranged quarterly to provide "on-site health services." The service items include: personal health consultation, medical department suggestions, workplace unlawful infringement, ergonomics hazard prevention, maternal health protection consultation (including anticipated pregnancy, during pregnancy, post-delivery, breastfeeding, etc.), and overwork-related disease risk interviews.

No.	Objective/ target	Plan	Description of current status	Implementation Status
1	Fully transformed to lead-free products	Transformed to lead-free procedures in 2009	Lead-free operating procedures were fully introduced for the products of the Company	Continued to execute the 100% lead-free product procedures
2	Checked whether the power circuits were overloaded, added protective tubes for wires, and installed electricity leakage breakers	Improved power use safety and personal safety	Added EMT tubes for power cables to avoid sparks that may result from mouse biting or aging and installed electricity leakage breakers for shower and pantry	Installed electricity leakage breakers and metal EMT tubes to protect power cables
3	Isolated environmental noises	Reduced noises that discomfort human bodies	The noise pollution of the AC unit exceeded 80dB	Isolated the AC machine room and added soundproof doors and soundproof rock wools

No.	Objective/ target	Plan	Description of current status	Implementation Status
4	Labeled power-use safety areas	Labeled power area warnings	Added warnings for the power use areas to remind persons that entered shall be aware of the power use safety and noise prevention	Added label warning and relevant preventive equipment

(2) Any losses suffered by the Company in the most recent year and up to the publication date of the annual report due to labor disputes (including any violations of the Labor Standards Act found in labor inspection, specifying the disposition dates, disposition reference numbers, the articles of law violated, the substance of the legal violations and the content of the dispositions), and disclose an estimate of possible expenses that could incur currently and in the future and countermeasures: None.

6. Cybersecurity management

(I) Describe the cybersecurity risk management structure, the cybersecurity policy, the specific management plan, and the resources invested in cybersecurity management:

Cybersecurity risk management structure:

The Company established a dedicated department for information safety in 2022 to be responsible for the formulation of cybersecurity policies, the promotion of cybersecurity measures, and regular examination. The information safety committee has a chief of information safety, who is concurrently the director of the information department, and three members. When any information safety event occurs, they shall contract responsible personnel for operating procedures of relevant departments for crisis management. In addition, the Company has also passed the ISO27001 audit. The audit department also included cybersecurity inspection in the items of the annual audit plan each year.

Cybersecurity policy:

The Company's cybersecurity policy states the requirements, standards, and specifications for cybersecurity management operations, including but not limited to electronic hardware equipment safety management, installation of operating systems and applications, e-mail management and control, network firewall installation, the establishment of Internet use access, wireless network use specifications, anti-virus software installation, access control of system program data, updates and maintenance of internal servers, and development of safety monitoring of systems.

Substantial management plan:

(1) Safety management of electronic hardware equipment:
A. Servers and major equipment are placed in the machine room with access control, and only personnel with permission can access them by using cards.
B. Install protection software that has automatic updates of virus signatures for computer equipment to ensure it can effectively detect viruses and vicious software and acts.

(2) Installation, management, and control of operating systems and applications:
A. The using department shall propose a permission application based on the information functions, application system, and programs required. After the application is approved by the director of the department and the director of the information department based on their work duties, information personnel will set its use permission.
B. For any personnel change or resignation, the information department will immediately alter its account and use permission to ensure information safety.

(3) Internet use authorization:
A. Install firewall control and endpoint protection and invasion detection software for the external network to detect and block external invasion and attacks.
B. Install attack detection equipment for the internal network to regularly detect anomalies of the internal network and computers.

(4) Safety monitoring of the system:
A. UPS and voltage stabilizers are installed for the mainframe in the machine room to prevent system damage resulting from a power outage or abnormal power supply.
B. Established a remote-backup system; when the local machine room loses its function due to disasters, the recovery plan may be initiated by the remote backup mainframe and storage equipment.
C. Reinforced the data backup and recovery system and regularly made schedules for backup storage to enhance the completeness and efficiency of system recovery.

Resources for cybersecurity management:

(1) The information safety committee regularly examines the internal information safety management and operating status, provides reports and recommendations to the management, and regularly compiles and reports to the Board each year.
(2) The audit department also regularly submits cybersecurity audit reports to the Board.
(3) All employees had executed the consent for employee information management regulations and completed information safety educational

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training.

(II) List any losses suffered by the Company in the most recent year and up to the publication date of the annual report due to significant cybersecurity incidents, the possible impacts therefrom, and countermeasures: There was no significant cybersecurity incident that occurred to the Company.

7. Important contracts:

Type of contract	Party	Contract starting and ending date	Main content	Restrictive terms
Land lease	Science Park Bureau	2019/08/06~2038/12/31 2007/06/12~2026/12/31	Leasing land with an area of 2,101.05 m² Leasing land with an area of 1,384.65 m²	None
Insurance contract	1. Fubon Insurance	2025/10/01~2026/09/30	Liability insurance for Directors, supervisors, and material employees	None
	2. Fubon Insurance	2025/12/31~2026/12/31	Fire insurance
	3. Nan Shan General Insurance	2025/12/31~2026/12/31	Fire insurance
	4. AIG Taiwan	2026/04/01~2027/04/01	Commercial general liability insurance
	5. Nan Shan General Insurance	2025/10/15~2026/10/15	Transportation cargo open policy insurance

8. KPIs of the Company:

(1) Financial indicator

Meaning: The control of the Company's operating performance, financial structure, and profitability

Percentage	Formula	Objective	2024	2025
(Earnings per share)Revenue-EPS	Net income/weighted average number of issued shares	>1	3.68	3.45
(NP %) Net Profit Margin	Net profits after tax/net sales	>10%	32.17%	28.86%
Liability ratio	Total liabilities/total assets	<23%	19.07%	31.07%
current ratio	Current assets/current liabilities	>225%	510.32%	287.57%
inventory turnover	Cost of goods sold/average inventory	>3	0.56	0.60

(2) Performance indicator

Meaning: Expense control regarding personnel of Sales, R&D, and Production departments and profit creation

Department	Percentage	Formula	Objective	2024	2025
Sales Department	(SP/Sales Expense)	Net profit of sales/sales expenses	>3.5	9.83	10.35
Sales Department	(Revenue/Sales Expense)	Revenue/sales expenses	>10	14.35	15.19
R&D Department	Resource Utilization Rate	Baseline*Complete% / Working Hours(in pass 12 month)	>80%	85%	52%
R&D Department	(ECR/(Lab) man-month)	(ECR/(Lab) man-month)	<0.5	0.55	0.62
Production Department	Annual increase/decrease rate of idle stock	Comparison of the amount in the same period of two years	<Revenue 0.5%	0.70%	0.51%

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(V) Review and analysis of financial condition and financial performance and risk management

Financial position:
Unit: (In Thousands of New Taiwan Dollars)

| Year
Item | 2024 | 2025 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | Increase/decrease ratio (%) |
| Current assets | 790,104 | 1,026,797 | 236,693 | 30% |
| Fixed assets | 153,135 | 141,862 | -11,273 | -7% |
| Other assets | 138,162 | 117,207 | -20,955 | -15% |
| Total Assets | 1,081,401 | 1,285,866 | 204,465 | 19% |
| Current liabilities | 154,826 | 357,054 | 202,228 | 131% |
| Long-term liabilities | 51,359 | 42,468 | -8,891 | -17% |
| Total Liabilities | 206,185 | 399,522 | 193,337 | 94% |
| Capital stock | 567,365 | 567,365 | 0 | 0% |
| Capital surplus | 43,953 | 43,953 | 0 | 0% |
| Retained earnings | 266,546 | 277,879 | 11,333 | 4% |
| Total shareholders' equity | 875,216 | 886,344 | 11,128 | 1% |
| Analysis of changes exceeding 20%: 1. The increase in current assets was primarily due to the increase in accounts receivable during the period. 2. Current liabilities increased, primarily due to the increase in short-term borrowings during the period.
Effects of changes in the financial position in the most recent two years: There was no material effect on the financial position.
Future response plan: Not applicable. | | | | |

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2. Financial performance:

Unit: (In Thousands of New Taiwan Dollars)

Item	2024	2025	Amount increased (decreased)	increase/ decrease(%)	Analysis of change
Total net revenue	$649,951	$677,719	27,768	4%
Net revenue	649,951	677,719	27,768	4%
Operating cost	204,836	216,093	11,257	5%
Gross profit	445,115	461,626	16,511	4%
Operating expenses	253,216	265,170	11,954	5%
Operating profit	191,899	196,456	4,557	2%
Non-operating income and gains	52,940	32,001	-20,939	-40%	1
Non-operating expenses and losses	-3,054	-3,563	509	17%
Gains before tax	241,785	224,894	-16,891	-7%
Income tax gains (expenses)	-32,728	-29,289	-3,439	-11%
Net profit (loss)	$209,057	$195,605	-13,452	-6%
Analysis of changes exceeding 20%: 1. The decrease in non-operating income and gains was primarily due to the reduction in net foreign exchange gains. Effects of changes in the financial position in the most recent two years: There was no material effect on financial performance. Future response plan: Make adjustments according to operating strategies and solidify key products for active arrangements; meanwhile, continue to improve the management and actively improve and stabilize the financial structure in the hope of improving the operations.

3. Cash flow analysis:

Unit: (In Thousands of New Taiwan Dollars)

Opening cash balance	Net cash flow from operating and investing activities throughout the year	Cash outflow from financing activities throughout the year	Cash residual amount	Effects on changes in exchange rates	Remedy for estimated cash deficit
					Investment plan	Financing plan
239,619	123,869	(54,644)	301,161	(7,683)	None	None
1. Analysis of changes in cash flows during the year: Cash inflow from operating income: Primarily due to the accounts receivable during the period. Cash outflow from investing activities: Primarily due to the disposal of financial assets measured at amortized cost. Cash outflow from financing activities: Primarily due to the distribution of cash dividends. 2. Improvement plan for insufficient liquidity and liquidity analysis: There is no insufficient cash liquidity. 3. Remedial measures for cash deficiency and liquidity analysis: None.

Effect of major capital expenditures on finance and business in the most recent year: None.
Investment policy for the most recent year, the main reasons for profit or loss, improvement plan, and investment plan for the coming year:

Description	Reinvestment policy	Main reasons for gains or losses	Improvement plan	Investment gains or losses recognized during the period (NT$ thousand)	Other future investment plans
Tianjin Loop	Develop and provide service for Mainland China	Operating income failed to achieve the expectations	Not applicable	$28	None
Tianjin Hutong	Develop and provide service for Mainland China	Transfer of prepayment to other income	Continue to explore new customers in Mainland China	($605)	None
Chongqing Cantong	Develop LOOP-iNET (smart network equipment management system)	revenue growth from iNET	Adjustments will be made to product strategies in due course according to the overall trends of the market	($1,527)	None

Analysis and evaluation of risks shall be performed for the following matters in the most recent year and up to the publication date of the annual report:

(1) Effects of changes in interest rates and exchange rates and inflation on the Company's profit or loss and future countermeasures

A. Effects on the Company's profit or loss:

Item	2025 (NT$ thousand; %)
Net interest income and expenses	6,211
Net exchange profit	2,625
Ratio of net interest income and expenses to net revenue	0.916%
Ratio of net interest income and expenses to net profit before tax	2.762%
Ratio of net exchange profit to net revenue	0.387%
Ratio of net exchange profit to net profit before tax	1.167%

a. Changes in interest rates

Financial assets and financial liabilities with cash flow risks due to changes in interest rates in 2025 were NT$100,537 thousand and NT$0 thousand. If changes in market interest rates will result in changes in the effective interest rates of such financial products, assuming that the market interest rates increase by 0.1%, the net

profit before tax of the consolidated Company in 2024 and 2025 increases/decreases by NT$101 thousand and NT$148 thousand. The main reason is the exposure of the net asset interest rate due to changes in the interest rates of the consolidated company.

b. Changes in exchange rates

The Company has import/export business and capital transactions denominated in foreign currencies. In 2025, derivatives (forward exchange agreements) with risks due to changes in exchange rates were US$0 thousand. If changes in market exchange rates will result in changes in the fair value of such financial products, when NTD depreciates by 1% against foreign currencies, the net profit before tax of the Company in 2025 will decrease by NT$4,220 thousand.

c. Inflation

There is no effect caused by inflation.

B. Future countermeasures:

a. Countermeasures for changes in interest rates

The Company has a stable financial structure and favorable credit standing. If there is a demand for capital accommodation, it can obtain capital with reasonable costs from banks or the capital market. For interest rates of bank borrowings, the Company maintains close contact with banks to understand the trending of interest rates to serve as a reference to secure the most favorable borrowing and asset allocation. The main terms of mid-to-long-term working capital are described as follows:

Loan item	Loan A			Loan B
Content	Short-term (secured) loan	Case A - Comprehensive loans - 1	Case B - Comprehensive loans - 2	Comprehensive bank loans
Limit	NT$100 million	NT$80 million	NT$72 million	NT$40 million
Criteria	NTD: FTP on the same date/period + 0.75% fixed interest rate	NTD: Fixed savings interest rate index + interest at the variable rate of + 0.93%
USD: TAIFX3 on the same date/period + 1% and divided by 0.946 (at present, interest per annum is 5.3%)) for the fixed interest	Fixed savings interest rate index + interest at the variable rate of + 0.93%	NTD: Calculated at an annual rate of 1.8% based on the three-month or six-month TAIBOR, but not to be lower than the bank's NTD basic loan rate, with adjustments to the interest rate once per month.
USD: Calculated by adding 1% to the annual rate of the three-month or six-month TAIFX OFFER, then dividing by 0.946, but not to be lower than the bank's USD basic loan rate.
Period	1 year	1 year	1 year	1 year (2025.07.19-2026.07.18)
Drawdown period	2025.10.24~2026.10.23 (last drawdown date)
2026.10.24 (repayment date upon credit line maturity)	2026.03.03~2027.03.02 (last drawdown date)
2027.03.03 (repayment date upon credit line maturity)		2025.07.19-2026.07.18
Unused balance	NTD 100,000 thousand	NTD 80,000 thousand	NTD 72,000 thousand	NTD 4,000,000
Remarks		Plant on Xin'an Rd., Hsinchu City	Using the plant on Ruiguang Rd., Taipei and equipment as collateral

b. Countermeasures for changes in exchange rates

The Company and abundant working capital and has relatively better flexibility to respond to the risk of changes in interest rates in financial operations. For changes in exchange rates, the Company has established a risk assessment team. Our purchases are primarily denominated in USD, which is offset by regular purchase and sales payments. The Company offsets the exchange rate fluctuations of different currencies to achieve a certain level of natural hedging effects from changes in exchange rates. Apart from partial dynamic and natural hedging, the Company sells the remaining currencies by selecting better timing to avoid risks of changes in exchange rates. The Company and customers have reached a consensus for the handling principles; if the appreciation/depreciation of the exchange rate exceeds a certain level, it will be reflected immediately on the quotation.

c. Countermeasures for inflation

The selling price of products and the purchasing price of raw materials are determined based on the pricing strategies and the supply/demand status in the market. With the increase in the market supply and the intense market competition, the price showed a dropping trend; therefore, there was no effect of inflation in the most recent two years. Regarding the effects of inflation, the industry the Company is in is estimated to have no inflation; however, the Company keeps abreast of price volatility rates in relevant markets and will horizontally adjust product quotations based on the prices or execute cost control plans in due course.

(2) Policies regarding high-risk investments, high-leverage investments, loans to others, endorsement/guarantees, and derivative transactions, and main reasons for gains or losses, and countermeasures in the future:

To manage financial risks, the Company had not engaged in any high-risk/high-leverage financial investment from the beginning of 2026 to the publication date of the annual report. To control certain risks, the Company has established its internal management regulations and procedures based on the optimization of finance and operations according to relevant laws and regulations and requirements of the SFC. Such management regulations include "Procedures for Derivative Transactions," "Procedures for Loans to Others," "Procedures for Acquisitions or Disposals of Assets," and "Procedures for Endorsements and Guarantees." In addition, forward exchange agreements of the Company are for hedging purposes instead of transaction or speculative operations.

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(3) Future R&D plan and R&D expenses expected to be invested:

A. Future R&D plan: Please refer to pages 93-109 of the annual report.
B. Current progress of uncompleted R&D plans and R&D expenses required to be invested: Please refer to pages 108-109 of the annual report.

(4) Effect of changes in domestic and foreign policies and laws of significance on the finance and business of the Company and countermeasures:

(5) Effect of changes in technologies (including cybersecurity risks) and industry on the finance and business matters of the Company, and countermeasures:

The Company has been deeply cultivating the international market, having business dealings with 41 countries worldwide. In 2025, overseas sales accounted for about 75% of the revenue. In terms of industry, electricity and government agencies account for about 70% of the total revenue, while the communication and transportation markets have shown an 81% growth due to the development and application results of new products.

In the face of the deepening of 5G applications, the expansion of AI technology, and the continuous advancement of digital transformation, communication applications are being diversified and customer demands are being upgraded, placing higher requirements on products in aspects such as high-speed transmission, low latency, stability, and cybersecurity protection. Therefore, Loop Telecommunication continues to invest in the development of next-generation communication technologies, edge computing, and AI application-related products, and enhances product integration capabilities and market competitiveness through collaboration with major international SI companies. Currently, demand in the European and American markets remains stable. The domestic market continues to promote the development of private networks and vertical applications. The Southeast Asian market is gradually recovering, and we are actively expanding into other emerging markets.

The industrial environment is rapidly changing, and due to factors such as uneven recovery in end-user demand, geopolitical risks, and supply chain adjustments, market demand remains uncertain, which may affect the company's revenue expectations and resource Configuration (CFGN) effectiveness. To address the risks of industry changes, the Company regularly carries out market demand forecasts for its products and services, adjusting dynamically based on changes in the market environment. By continuously

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observing market trends and closely cooperating with customers, the Company will promptly adjust production capacity Configuration (CFGN) and inventory strategies when market demand is less favorable than expected, in order to minimize potential impacts on its financial performance and ensure overall operational stability.

Regarding cybersecurity risks, with the widespread adoption of AI applications, the deepening of cloud computing, and remote collaboration, the forms of cybersecurity threats are becoming more diverse (such as ransomware attacks, supply chain attacks, data breaches, and system interruptions), posing potential impacts on the company's financials, operational stability, and corporate reputation. To strengthen information security resilience, the Company established a dedicated department and committee for information safety in 2022, with the highest-ranking official of the information department serving as the chief of information safety. Together with relevant members, they jointly promote information security policies and control mechanisms.

The Company has established a 24/7 cybersecurity monitoring system that can detect anomalies in real time and respond, analyze, and continuously optimize according to procedures. Additionally, by implementing simulated phishing tests and annual cybersecurity awareness training, the Company aims to reduce human risk and enhance all employees' ability to identify and respond to potential network threats. In 2025, the Company did not experience any significant cybersecurity incidents, indicating that the current cybersecurity measures are effective to a certain extent. The Company will continue to adopt innovative technologies and follow international information security management standards to ensure the security and continuity of financial business data and operating systems.

(6) Effects of changes in the corporate image on crisis management of the enterprise and countermeasures:

As of the end of 2025, there were no such circumstances.

(7) Expected benefits of M&As, possible risks, and countermeasures:

As of the end of 2025, there were no such circumstances.

(8) Expected benefits of the expansion of plants, possible risks, and countermeasures:

As of the end of 2025, there were no such circumstances.

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

The Company purchases raw materials from different suppliers as much as possible to ensure there is sufficient raw material supply for mass production

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and minimize the risk of centralized procurement. Even though the company acquires partial raw materials from a single supplier, it continuously seeks other purchase methods to minimize the risk of centralized procurement. In 2025, the top 10 customers of sales accounted for 83% of the Company's revenue. As the Company focuses on communication transmission equipment manufacturing and services, partial customers account for a significant ratio of its sales income, which is a characteristic of the industry.

(10) Effects and risk of mass transfer or change in the equity held by Directors or major shareholders with a shareholding over 10% of the Company, and countermeasures

The Company generally has close contact with major shareholders for them to release their shares by adopting methods having the least possible negative impacts on the stock price of the Company and other shareholders.

(11) Effects of changes in management rights on the Company, risks, and countermeasures: None.

(12) Litigious and non-litigious matters. List major litigious, non-litigious or administrative disputes that involve the Company and its Directors, President, persons with actual responsibility for the Company, major shareholders holding a stake of greater than 10%, and subsidiaries that have been concluded by means of a final and unappealable judgment, or are still under litigation. Where such a dispute could materially affect shareholders' equity or the prices of the Company's securities, disclose the facts of the dispute, the amount of money at stake in the dispute, the date of litigation commencement, the main parties involved in the dispute, and the status of the dispute as of the publication date of the annual report: None.

(13) Other important risks and countermeasures: None.

Risk management structure and operation

A. The Company has enhanced its corporate risk management, including risk detection, assessment, reporting, and handling, based on the latest development of internal audit requirements of the standards by adopting a cautious and stringent attitude. Risk control of the Company is divided into three levels (systems): The organizer or the undertaker is the "first system," it shall be responsible for the initial risk detection, assessment, consideration and design of the control and prevention. The second

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system is the review committee hosted by the President (or Vice President); it is responsible for feasibility evaluation and assessment of risks. The third system is the review of the Legal Affairs Office and Audit Office and review and discussion by Directors and supervisors. The Company has no chief risk officer, and the purpose is to allow all employees to fully exert risk control. Hierarchical prevention measures are adopted instead of being controlled by one person, which is the method to implement risk control. As shown in the following table.

B. For material risk assessment matters of the Company, if it is a matter of implementation that the review and discussion of the second and the third systems are not required, a meeting shall be held with the Audit Office to detect risks, make assessments, and provide preventive recommendations. If there are any imminent, possible risks detected, employees may also report to their superiors for due prevention. For significant matters (i.e., investment and wealth management and construction tender), review meetings or tender monitoring will be performed for each proposal, and regular audits will be implemented.

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(VI) Special Items

1. Information on affiliates:

(1) Name and organizational chart of affiliates

As of the end of 2025, the investment relationships and shareholding ratio of the Company and its subsidiaries are set out in the following figure:

December 31, 2025

(2) Basic information on affiliates:

Company name		Establishment Date	Address	Paid-in capital	Paid-in capital
1.	Tech-Plan (BVI) Ltd.	1998.08.12	Portcullis Chambers, 4th Floor, Ellen Skelton Building, 3076 Sir Francis Drake Highway, Road Town, Tortola VG1110, VIRGIN ISLANDS, BRITISH	USD4,016,000	General investment
2.	Maxi View Holdings Ltd.	1998.11.16	15/F BOC GROUP LIFE ASSURANCE TOWER 136 DES VOEUX ROAD CENTRAL CENTRAL HK	USD1,616,000	General investment
3.	Loop Telecommunication International Ltd.	2002.06.20	P.O. BOX 32052 Grand Cayman KYI-1208,Cayman Islands.	USD2,400,000	General investment
4.	Tianjin Loop Electron Technology Co., Ltd.	2001.10.30	No.405, 4F, Building A, Keyuan Science and Trading Building, No. 240, Baiti Road, Nankai District, Tianjin City, China	USD850,000	Development, production, sales, and relevant technical consultation services of data communication equipment, computers, network systems, and software/hardware of computers
5.	Chongqing Loop Technology Co., Ltd.	2002.06.25	No. 10-5, Building C, Yugao Plaza, No. 200, Keyuan 1st Road, Shiqiaopu, Chongqing City, China	USD2,400,000	R&D, design, production, and processing of data communication equipment (excluding satellite communication equipment), computer network system equipment, network testing instruments and equipment, computers and external equipment, office automation equipment, and relevant service software/hardware of the abovementioned products, sales of products produced by the Company, and provision of relevant after-sales services.
6.	Tianjin Loop Technology Co., Ltd.	2015.10.14	No.405, 4F, Building A, Keyuan Science and Trading Building, No. 240, Baiti Road, Nankai District, Tianjin City, China	USD600,000	R&D, production, and sales of communication equipment, computer network system equipment, network testing instruments and equipment, computers and external equipment, office automation equipment, relevant service software/hardware of the abovementioned products, and product system integration
7.	Loop Telecom NA, Inc.	2018.01.23	2000 G Avenue, Suite 804 Plano, Texas 75074	USD5,000	Development and trading of digital communication equipment and software

Relevant information on those with presumed controlled or subordinated relationships: None.

December 31, 2025

(3) Name of directors and presidents of affiliates and their shareholding:

Company name	Title (Note 1)	Name or representative	Shareholding (Note 2) (Note 3)
			Number of shares (amount of capital contribution)	Shareholding (capital contribution) ratio
1.	Tech-Plan (BVI) Ltd.	Chairman	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	USD4,016,000	100%
		Director	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	(Note 4)	(Note 4)
2.	Maxi View Holdings Ltd.	Chairman	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	USD1,616,000	100%
		Director	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	(Note 4)	(Note 4)
3.	Loop Telecommunication International Ltd.	Chairman	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	USD2,400,000	100%
		Director	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	(Note 4)	(Note 4)
4.	Tianjin Loop Electron Technology Co., Ltd.	Chairman	Representative of Loop Telecommunication International, Inc. - He Hwa-Chi	USD850,000	100%
		President	Wang Yen-Min	(Note 4)	(Note 4)
		Director	Representative of Loop Telecommunication International, Inc. - Wu Ming-Ze	(Note 4)	(Note 4)
		Director	Fan Zheng-Chun	(Note 4)	(Note 4)
		Supervisor	Representative of Loop Telecommunication International, Inc. - Liu Dong-Jie	(Note 4)	(Note 4)
5.	Chongqing Loop Technology Co., Ltd.	Chairman (concurrently the president)	Representative of Loop Telecommunication International, Inc. - He Hwa-Chi	USD2,400,000	100%
		Director	Representative of Loop Telecommunication International, Inc. - Wu Ming-Ze	(Note 4)	(Note 4)
		Director	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	(Note 4)	(Note 4)
6.	Tianjin Loop Technology Co., Ltd.	Chairman	Representative of Loop Telecommunication International, Inc. - He Hwa-Chi	USD600,000	100%
		Director	Representative of Loop Telecommunication International, Inc. - Yeh Maw-Lin	(Note 4)	(Note 4)
		Director (concurrently the president)	Wang Yen-Min	(Note 4)	(Note 4)
		Supervisor	Representative of Loop Telecommunication International, Inc. - Wu Ming-Ze	(Note 4)	(Note 4)
7.	Loop Telecom NA, Inc.	Director	Representative of Loop Telecommunication International, Inc. - He Hwa-Chi	USD5,000	100%
		Director	Representative of Loop Telecommunication International, Inc. - Wu Ming-Ze	(Note 4)	(Note 4)
		Director	Representative of Loop Telecommunication International, Inc. - Lai Yong-Zan	(Note 4)	(Note 4)

Note 1: If an affiliate is a foreign company, specify the persons of equivalent positions.
Note 2: If the investee is a limited company by shares, please specify the number of shares and shareholding ratio; for others, please specify the amount of capital contribution and capital contribution ratio and make remarks.
Note 3: If a Director is a corporation, relevant information on the representative shall be additionally disclosed.
Note 4: The amount of capital contributions of representatives shall be disclosed in summary.

(4) Business overview of associates
December 31, 2025 / (Unit: NT$ thousand, except for otherwise specified)

Company name	Amount of Capital	Total Assets	Total Liabilities	Net value	Revenue	Operating profit	Profit or loss for the period (after tax)	Net loss per share (NT$) (after tax)
1. Tech-Plan (BVI) Ltd. (Note 1)	USD4,016,000	999	-	999	-	-	-2,104	Not applicable
2. Maxi View Holdings Ltd. (Note 1)	USD1,616,000	-626	-	-626	-	-	-577	Not applicable
3. Loop Telecommunication International Ltd. (Note 1)	USD2,400,000	1,625	-	1,625	-	-	-1,527	Not applicable
4. Tianjin Loop Electron Technology Co., Ltd.	USD850,000	3,038	3,476	-438	-1	-752	28	Not applicable
5. Chongqing Loop Technology Co., Ltd.	USD2,400,000	9,169	7,553	1,616	11,394	-1,527	-1,527	Not applicable
6. Tianjin Loop Technology Co., Ltd.	USD600,000	3,598	6,349	-2,751	5,176	-593	-605	Not applicable
7. Loop Telecom NA, Inc.	USD$5,000	188	31	157	-	-	-	Not applicable

Note 1: Refer to investee.
Note 2: If an affiliate is a foreign company, relevant figures shall be translated into NTD by adopting the exchange rate on the reporting date for presentation. The exchange rate of USD to NTD was NT$31.43.
Note 3: Consolidated financial statements of affiliates: Please refer to the information on the website of MOPS.
Note 4: Affiliation report of affiliates: Not applicable.

Regarding securities under private placement in the most recent year and up to the publication date of the annual report, the date and amount approved by the shareholders' meeting or the Board, the basis and rationale of pricing, the selection method of particular persons, reasons for the necessity of private placement, targets of the private placement, qualification and conditions, subscription quantity, relationships with the Company, participation in the Company's operations, actual subscription (or conversion) price, differences between the actual subscription (or conversion) price and the reference price, effects of the private placement of shareholders' interest, capital utilization plans after the full collection of share payments or considerations, utilization of capital from the private placement of securities, the progress of plan execution, and the exhibition of plan benefits: None.
Holding or disposal of the Company's shares by its subsidiaries in the most recent year and up to the publication date of the annual report: None.
Other matters that require additional explanation: None.

(VII) Any of the circumstances listed in subparagraph 2, paragraph 2, Article 36 of the Securities and Exchange Act, which may materially affect shareholders' interest or the price of the Company's securities, that have occurred in the most recent year (2025) and up to the publication date of the annual report: None.

145

Loop Telecommunication International, Inc.

Chairman: Yeh Maw-Lin

AI assistant

LOOP — Annual Report 2025

52258_rns_2026-06-11_21ef8b09-d8c7-4bd3-89c2-a74029b6b904.pdf

Loop Telecommunication International, Inc.

II. Flagship Product G7800 and Market Outcomes

III. Enhance Network Management, Cybersecurity, and AI Integration Applications

IV. Future Strategy and Product Layout

(2) Budget execution:

(3) Analysis of financial income and expenses, and profitability:

Optical communication equipment:

4. Effects of the external competitive environment

(3) Remunerations of the Directors, Supervisors, President, and Vice Presidents

B. Remunerations of the President and Vice Presidents

C. Names of managers who distribute employee remuneration and the distribution status

D. Remuneration of senior management with the top five remunerations of the listed company (disclosure of name and remuneration

individually)

2. Corporate governance implementation

(1) Operation of the Board:

3. Information on CPA fees

4. Information on replacement of CPAs

(1) Former CPAs

(2) Successor CPAs

7. Information on relationships between shareholders with the top ten shareholdings

(2) List of major shareholder

B. Connectivity between the upstream, midstream, and downstream of the industry

C. Development trends of products

Overview of Port Isolation Technology

d. Corporate grade network management and integration solution

e. 5G base station transmission equipment

D. R&D expenses expected to be invested in the following three years

E. Current progress of uncompleted R&D plans and R&D expenses required to be invested:

F. Major factors and risks affecting the success of R&D in the future

2. Overview of market and production and marketing

(1) Market analysis:

A. Sales regions of main products of the Company

B. Market share and the supply/demand in the market and the potential of growth in the future

a. Sales (provision) region of major products (services):

B. According to the operating specifications of ISO9001, the production procedures of the Company are as follows:

(3) Supply of main raw materials

5. Labor-capital relations

A. Employee benefit measures

C. Employee retirement system and its implementation:

6. Cybersecurity management

7. Important contracts:

8. KPIs of the Company:

(1) Financial indicator

2. Financial performance:

3. Cash flow analysis:

b. Changes in exchange rates

c. Inflation

B. Future countermeasures:

a. Countermeasures for changes in interest rates

(VI) Special Items

1. Information on affiliates:

(1) Name and organizational chart of affiliates

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