LITEON®

TSE: 2301

WWW.LITEON.COM

Printed on February 28th, 2026

2025 Annual Report

LITE-ON TECHNOLOGY CORPORATION

LITE-ON Technology Corporation

Taiwan Stock Exchange Market Observation Post System: http://mops.twse.com.tw

LITEON Annual Report is available at: https://www.liteon.com/en/download/annual-reports

CONTACT INFORMATION

Sophia Chang
AVP, Corporate Brand Value
Development Center
Spokesperson
Tel: 886-2-8798-2888
e-mail: [email protected]

Julia Wang
Senior Director, Investor Relations
Acting Spokesperson
Tel: 886-2-8798-2888
e-mail: [email protected]

Global Headquarters
392, Ruey Kuang Road, Neihu,
Taipei 114, Taiwan, R.O.C.
Tel: 886-2-8798-2888

Major Factory
90, Chien-I Road, Chung-Ho Dist.,
New Taipei City 235, Taiwan, R.O.C.(1)
Tel: 886-2-2222-6181

Stock Transfer Agent
The Transfer Agency Department of
Yuanta Securities Co., Ltd.
B1F., No. 67, Sec. 2, Dunhua S. Rd.,
Da'an Dist., Taipei City 106.
Tel: 886-2-2586-5859
http://www.yuanta.com.tw

Shiuh-Ran Cheng and Chien-Wei Chen
Deloitte & Touche
Auditors
20F, Taipei Nan Shan Plaza, No. 100, Songren Rd.,
Xinyi Dist., Taipei 110016, Taiwan
Tel: 886-2-2725-9988
www.deloitte.com.tw

GDR and Related Information: N/a
LITE-ON Technology Corporation website:
www.liteon.com

2025 ANNUAL REPORT

TABLE OF CONTENTS

01 Letter to Shareholders

02 Corporate Governance Report

09 Board Members and Management Team
19 Remuneration Paid during the Most Recent Fiscal Year to Directors and Management Team
25 Implementation of Corporate Governance
91 Information on Attesting CPA Professional Fees
91 Information on Replacement of CPAs
92 Audit Independence
92 Changes in Shareholding of Directors, Managers and Major Shareholders
93 Relationship among the Top Ten Shareholders
94 Ownership of Shares in Affiliated Enterprises

03 Capital Overview

96 Capital and Shares
100 Bonds
102 Preferred Shares
102 Global Depository Receipts
103 Employee Stock Options
103 New Restricted Employee Shares
106 Status of New Shares Issuance in Connection with Mergers and Acquisitions
106 Financing Plans and Implementation

Operational Highlights

107 Business Activities
121 Market and Sales Overview
125 Human Resources
125 Environmental Protection Expenditure
126 Labor Relations
130 Cyber Security Management
133 Important Contracts

05

Review of Financial Conditions, Financial Performance, and Risk Management

134 Financial Status
135 Financial Performance
136 Cash Flow
137 Major Capital Expenditure Items
137 Long-term Investment Policy and Results
138 Analysis of Risk Management
148 Other Important Issues

06

Special Disclosure

149 Summary of Affiliated Companies
149 Private Placement of Company Shares
149 Other Supplementary Information

07

Other Significant Events Affecting Shareholders' Equity or Stock Price

01
International Journal

Dear Shareholders,

The global market has been volatile over the past year, with rapid changes in the technology industry, tariff frictions, currency fluctuations, and global supply chain restructuring, bringing many challenges across industries. 2025 marks LITEON's 50th anniversary, which is not only an important milestone, but also a new starting point for us to become a world-class enterprise where we redefine the future on a solid foundation. With our presence spanning opto-electronics, power management, networking, and automotive sectors, LITEON is embracing the new wave of industry transformation driven by AI and energy transformation. Through agile and flexible response strategies and global expansion, LITEON is proactively tackling challenges and achieving breakthroughs, steadily building next-generation technologies and solutions for green data centers, and creating growth momentum in our operations and financial performance.

LITEON's global consolidated revenue in 2025 was NT$166.1 billion. By increasing the high-growth and high-value business as well as optimization of the resilience and operational efficiency of the company's global supply chain, LITEON achieved a full-year gross profit margin and operating profit margin of 22.9% and 10.1% respectively. Creating greater value for shareholders and fulfilling the commitment to providing more shareholder returns, the net profit after taxes was NT$15.1 billion; earnings per share (EPS) was NT$6.64; and the cash dividend reached NT$5 per share.

Improving Profitability as the Top Priority

LITEON's gross profit margin has risen from 17.4% in 2020 to 22.9% in 2025. The operating profit margin has also risen from 6.5% to 10.1%, proving our growing profitability. EPS has risen from NT$4.31 to NT$6.64. Meanwhile, the return on invested capital (ROIC) has risen to 48% from 28% in 2020. These reflected LITEON's improvement of high-growth and high-value businesses, active management of working capital, and optimization of capital input and operational efficiency.

Growth-driven Businesses Accounting for Over 60%

The plan for growth businesses covers cloud computing and AloT, as well as opto-electronics (including automotive electronics). Contribution to revenue from growth businesses rose from 49% in 2020 to 62% in 2025. The remaining 38% came from the cash-flow-stable information technology and consumer electronics segment. We are heading towards the target product portfolio.

Optimization of Operating Model

Driven by market demand, LITEON is proactively transforming into a system integrator and solutions provider. In the context of international competition, we continue to invest in cutting-edge technology research and development, and are committed to increasing the density of our R&D talent. In 2025, R&D expenses reached 5.3% of revenue, a significant increase compared to 3.2% in 2020.

The main investments are in AI data center power solutions, optoelectronic semiconductors, 5G+ network communication technology, and emerging businesses. We are focusing on enhancing technological barriers, proactively expanding industry partnerships, and creating an industry alliance ecosystem where "1+1>2", in order to expand growth strength and opportunities.

2025 ANNUAL REPORT

03
2025 ANNUAL REPORT

New Products and Technology Development

Based on the core value of "ONE Voyage, ONE Heart," we focus on investing in high-growth and high-value core businesses and launching next-generation solutions in response to market and customer needs.

LITEON is a leading manufacturer for next-generation key AI infrastructure globally. At Supercomputing, the world's high-performance computing event in St. Louis, USA in 2025, LITEON showcased a series of solutions compliant with the ORV3 standard and built on NVIDIA architecture, integrating power, rack, liquid cooling systems, and next-generation 800 VDC Power Rack (high-voltage DC step-down power rack) which fully support data center customers in rapidly deploying high-performance, energy-efficient AI infrastructure.

LITEON continues to strengthen its expertise in the opto-electronic field, proactively developing high-performance, energy-efficient light sources and opto-electronic semiconductor products. Meanwhile, we focus on developing high-end optocoupler technology which is applied to key areas such as new energy, energy storage, automotive electronics and industrial control in order to provide efficient, reliable and stable solutions. We are committed to promoting industrial upgrading and accelerating sustainable development.

Benefiting from the rapid development of 5G and next-generation communication technologies, LITEON accelerates the commercialization of 5G+ and AI-RAN technologies, launching high-efficiency small base stations and integrated private network solutions. Furthermore, we also adopt AI management to comprehensively improve the networking performance and energy across various fields.

Adhering to the core principles of system integration, innovation, and sustainability, we consistently deepen our leading position in the fields of AI data centers, networking, opto-electronics, and automotive technologies, and enhance the depth of our product technology and cross-ecosystem integration capabilities, creating greater value and long-term growth momentum for our global customers.

ONE Voyage, ONE Heart

RE 100

Environmental Commitments: 555 Carbon Reduction Action

SIDENCE
BASED
TARGETS
DRIVING AMMITOUS CORPORATE CLIMATE ACTION

LITEON's sustainable strategy adopts green operations and develops low-carbon products in active response to the challenges of climate change. We have been approved by the Science Based Targets initiative (SBTi) and have joined the RE100 initiative to achieve the target of net zero emissions by 2050. Furthermore, with 2023 as the base year, we have set an absolute carbon reduction target of 58.8% by 2033. In terms of supply chain management, we promote the "555 Carbon Reduction Action" through supplier carbon inventory support, energy diagnostics, low-carbon material development, and an internal carbon-fee system. Leveraging our industry influence to uplift smaller partners, LITEON is accelerating supply chain transformation and building a low-carbon, sustainable industry ecosystem.

Transparency and Integrity: A Model Enterprise

Integrity, transparency, and accountability form the crucial foundation of LITEON's sustainable development and continuous growth. For four consecutive years, we have received the highest recognition in the Corporate Governance Evaluation Survey and have been ranked among the top 5% of listed companies, demonstrating continued improvement in maintaining our corporate governance management measures.

Sustainable Talent, LITEON THE WAY

LITEON puts people first and has created a corporate culture of "Easy to Work With, Willing to Share". With "ELITE Talent Development System 2.0" as the core mechanism, we promote leadership development, digital transformation, AI empowerment, and international recruitment to create a talent ecosystem with international competitiveness and facilitate the mutual growth between talents and the company. Furthermore, we continue to optimize employee care in three major directions: "diversified benefits", "family and child care policy", and "gender equality". We also promote digital monitoring of occupational safety and health to enhance management efficiency and reduce personnel risks, so that LITEON employees can work and live with peace of mind.

Social Engagement: Initiatives for Mutual Benefit

LITEON first organized the “-1111 EcoRevolve Shopping Fair” in 2023 with the themes "EcoRevolve Treasures" and "Mindful Minimal Consumption" to raise public awareness and take action for sustainability. The 2026 event was hosted by Videoland Inc., bringing together numerous benchmark enterprises from a diverse range of fields, including finance, law, technology, and manufacturing. The event extends the virtuous cycle and reinforces long-term environmental and social value.

Year One: A New Chapter and Vision

In 2026, LITEON launched the new "Year One" initiative where we will challenge the status quo with fresh perspectives and standards, redefine and shape our future vision, and steadily move towards becoming a world-class sustainable enterprise.

In the face of rapid global technological changes and industrial reshaping, LITEON, with a longer-term vision and agile organizational resilience, is driving operational transformation and business upgrades, focusing on high-value-added, technology-driven core areas to strengthen corporate competitiveness and sustainable growth momentum.

With rapid increase in demand for computing power and AI infrastructure from the leading international customers, LITEON is simultaneously expanding our global operations and proactively increasing investment in key regions such as Taiwan, the United States, and Vietnam. We seek to build a more resilient, robust, and competitive global supply chain system and accelerate the provision of world-class scale capacity and overall strength.

With the rapid development of cloud computing, data centers are embarking on a new era of high computing density. As such, LITEON is driving next-generation data center solutions with leading technology. Collaborating with NVIDIA and global data center customers to develop 800 VDC high-voltage power racks and liquid cooling solutions, LITEON effectively reduces energy consumption, improves thermal efficiency and frees up rack space, making us a key partner for megawatt-level AI infrastructure. To deepen international collaboration, LITEON has also joined hands with Singapore's ST Telemedia Global Data Centres (STT GDC) and Nanyang Technological University to establish Southeast Asia's first high-voltage direct current (HVDC) power supply testbed, the "FutureGrid Accelerator." The initiative effectively reduces power consumption and facility space, improves renewable energy compatibility, sets a new standard for regional AI infrastructure, and drives the next wave of data-center upgrades across Asia.

In response to the global trend of innovation and sustainable transformation, LITEON proactively connects startups in Taiwan and around the world through the "LITEON+ Startup Platform." The 2025 LITEON+ Demo Day brought together seven global teams covering fields such as AI, low-carbon materials, sensing technology, and sustainable manufacturing processes. Moreover, LITEON collaborated with "Plug and Play Japan" to attain international resources, creating a thriving startup ecosystem. We also deepened strategic collaboration with Japan's Elephantech in green manufacturing, promoting the application and adoption of low-carbon printed circuit boards (PCBs) in production sites, and further upgrading the low-carbon green supply chain.

LETTER TO SHAREHOLDERS

Standing at a brand-new starting point, LITEON joins hands with shareholders, customers, employees, and partners to advance towards the next stage of growth. We will continue to focus on our core growth businesses and strengthen our competitiveness, aspiring to be a world-class enterprise and welcoming LITEON's "Year One" with a new vision and momentum. We sincerely appreciate the long-standing support and trust of all stakeholders. Faced with a rapidly changing environment, we will stay true to our original aspirations, maintain our passion, and take clever and pragmatic steps in a decisive manner to embark on a stronger and more brilliant new chapter for LITEON.

Tom Soong
LITEON Technology
Chairman

Anson Chiu
LITEON Technology
President

LETTER TO SHAREHOLDERS 88

Corporate Governance Report

2. Corporate Governance Report

2.1 Board Members and Management Team

2.1.1 Information Regarding Board Members

2.1.1.1 Board Members

2026/02/28

Title/Name	Nationality	Gender Age	Date of appointment (office)	Tenure (year)	Date of initial appointment	Proportion of shareholding at the time of appointment		Proportion of shareholding at present		Proportion of shareholding by spouse and underage children		Proportion of shareholding under the title of a third party		Important experience (education)
						Quantity	%	Quantity	%	Quantity	%	Quantity	%
Chairman Tom Soong	R.O.C.	Male 51-60	2025.05.20	three	2017.10.19	17,072,873	0.74%	18,093,459	0.78%	989,708	0.04%	0	0%	Education:
International Business Program Attendance, NTU-FUDAH EMBA
Electrical Engineering, University of Southern California, USA
Experience:
Special Assistant to Chairman & Vice Chairman, LITEON
CEO, LITEON Smart Life and Applications Business Group
General Manager, LITEON Shanghai Operational Center
CEO, LITEON New Mechanical Competence Business Group
General Manager, LITEON Mechanical Competence Business Group
General Manager, LITEON Networking Access Business Unit
General Manager, China Bridge Express Trading Co., Ltd.	Note 2	Raymond Soong, Director, father-child relationship	N.A.
Director Raymond Soong	R.O.C.	Male 81-90	2025.05.20	three	1992.05.20	79,302,560	3.42%	79,302,560	3.42%	21,166,064	0.91%	0	0%	Education:
Bachelor of Electronic Engineering, Taipei College of Technology
Experience:
Founder of LITEON Group and Lite-On Cultural Foundation
Member of Board of Councillors, the Doctorate College of Technology, South California (USC)
Honor:
Fellow, Industrial Technology Research Institution
Honorary PhD in Management, National Taipei University of Technology
Honorary PhD in Management, National Chiao Tung University
Honorary PhD in Management, National Taiwan University	Note 3	Tom Soong, Chairman, father-child relationship	N.A.

LITEON
LITE-ON TECHNOLOGY CORP.

Title/Name	Nationality	Gender Age	Date of appointment (office)	Tenure (year)	Date of initial appointment	Proportion of shareholding at the time of appointment		Proportion of shareholding by spouse and underage children		Proportion of shareholding by spouse and underage children		Proportion of shareholding under the title of a third party
						Quantity	%	Quantity	%	Quantity	%	Quantity	%
Director
Ta-Sung Investment Co., Ltd.
Representative: Anson Chiu	R.O.C.	Male 61*70	2025.05.20	three	1998.05.19
2022.05.20	47,088,399
0	2.03%
0%	47,088,399
1,641,173	2.03%
0.07%	0
0	0%
0%	0
0	0%
0%	Bachelor of Industrial Management, Lunghwa University of Science and Technology
CEO, Lite-On Technology Corp.
Power Conversion Business Group
General Manager, Lite-On Technology Corp.
Power Conversion Business Group
Director, NB Business Unit, Lite-On Technology Corp.
Power Conversion Business Group
Honor: 2023 National Outstanding General Manager Award	Note 4	None	N.A.
Director
Ta-Sung Investment Co., Ltd.
Representative: Harvey Chang	R.O.C.	Male 71-80	2025.05.20	three	2007.6.21	47,088,399
0	2.03%
0%	47,088,399
110,000	2.03%
0%	0
0	0%
0%	0
0	0%
0%	MBA, The Wharton School, Pennsylvania State University
Bachelor, Dept of Geology, National Taiwan University
Chairman of TVBS
Chairman of Catchplay Media Holdings Ltd.
President and CEO, Taiwan Mobile Senior VP and CFO, TSMC
Chairman, China Securities Investment Trust Corp.
President, China Development Trust Co. Ltd.
President, Grand Cathay Securities Manager, Trust Dept, International Dept, Chiao Tung Bank	Note 5	None	N.A.
Director
Ta-Sung Investment Co., Ltd.
Representative: Karin Huang	R.O.C.	Female 61*70	2025.05.20	three	1998.05.19
2025.05.20	47,088,399
0	2.03%
0%	47,088,399
0	2.03%
0%	0
0	0%
0%	0
0	0%
0%	EMBA, National ChengChi University
Bachelor of Accounting, Soochow University
CFO & Spokeswoman, Lite-On Semiconductor (acquired by Doodes)
Executive Assistant, Lite-On Technology Group
CFO & Spokeswoman, Lite-On IT Technology Corp.
Finance Director, Lite-On Technology Group	Note 6	None	N.A.

Corporate Governance Report
10

Corporate Governance Report

Note 1: Where the chairperson of the board of directors and the general manager or person of an equivalent post (the highest level manager) of a company are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response thereto (e.g. increasing the number of independent directors provided there be a majority of the members of the board of directors who are not employees or managers).
Below notes of other positions of the company or other companies only display public offering companies and important subsidiaries.
Note 2: (Chairman Tom Soong)
- Chairman and Corporate Sustainability Development Division Chief Sustainability Officer (CSO), Lite-On Technology Corp.
Director, Co-tech Development Corp., Lite-On Singapore Pte. Ltd., Lite-On China Holding Co. Ltd., Lite-On Electronics Co., Ltd. (HK)

LITEON
LITE-ON TECHNOLOGY CORP.

Director, representative of Silitech Technology Corp.

Note 3: (Director Raymond Soong)
- Chairman, representative of Co-tech Development Corp.
- Director, Lite-On Technology Corp.

Note 4: (Director Anson Chiu)
- Director, representative of Lite-On Technology Corp., Silitech Technology Corp., Dragonjet Corp.
- Director, Lite-On Singapore Pte. Ltd., Lite-On China Holding Co. Ltd., Lite-On Electronics Co., Ltd. (HK)

Note 5: (Director Harvey Chang)
- Independent Director, TAIWAN PURITIC CORP.
- Director, representative of Lite-On Technology Corp.

Note 6: (Director Karin Huang)
- Director, representative of Lite-On Technology Corp.

Note 7: (Independent Director Albert Hsueh)
- Independent director, Lite-On Technology Corp., Walsin Lihwa Corp. and TTY Biopharmaceutical Manufacturers Association

Note 8: (Independent Director Mike Yang)
- Independent Director, Lite-On Technology Corp.
- Executive Vice President of Quanta Computer Inc. Cloud Computing Business Unit and Director and President of Quanta Cloud Technology Inc.

Note 9: (Independent Director MK Lu)
- Honorary Chairman of Actron Technology Corporation, Sino-American Silicon Products Inc.
- Independent Director, Lite-On Technology Corp.
- Director, representative of GlobalWafers Co., Ltd

Note 10: (Independent Director Jesse Ding)
- Independent Director, Lite-On Technology Corp., Global Unichip Corp., DACIN Construction Co., Ltd.
- Director, representative of Qbic Technology Co., Ltd.

Corporate Governance Report
13

2025

Annual Report

2.1.1.2 Major Shareholders of the Institutional Shareholders

2026/2/28

Name of Institutional Shareholders	Major Shareholders
Ta-Sung Investment Co., Ltd.	Tom Soong (43.66%), Guangxing Investment Co., Ltd (56.34%)

2.1.1.3 Major Shareholders of the Company's major Institutional Shareholders

2026/2/28

Name of Institutional Shareholders	Major Shareholders
Guangxing Investment Co., Ltd	Tom Soong (99%)

2.1.1.4 Professional qualifications of Directors and independence of Independent Directors
2026/02/28

| Qualification
Name | Working experience and professional designations (Note1) | Eligibility of independent status | Number of other public companies in which the director also serves concurrently as an independent director |
| --- | --- | --- | --- |
| Tom Soong | Extensively experienced in talent selection and corporate management | Not an independent director | 0 |
| Raymond Soong | The founder of LITEON is also a pioneer in Taiwan's optoelectronic technology industry | | 0 |
| Ta-Sung Investment Co., Ltd.
Representative: Anson Chiu | Abundant experience in the Asian semiconductor industry | | 0 |
| Ta-Sung Investment Co., Ltd.
Representative: Harvey Chang | Well versed in salary management, the financial profession, and business operations | | 1 |
| Ta-Sung Investment Co., Ltd.
Representative: Karin Huang | Possessing accounting, financial analysis, and investment skills | | 0 |
| Albert Hsueh | Expertise in financial accounting and corporate governance with professional qualifications as accountants and part-time professors of university schools of management | All independent directors are in compliance with Article 3 of "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies", please refer to Note 2 for details | 2 |
| Mike Yang | Well versed in refinement of cloud management and deployment and in coordination of global 5G and AI networks | | 0 |
| MK Lu | Has earned the nickname "the Merger King" | | 0 |
| Jesse Ding | Specializes in financial revitalization and organizational transformation | | 2 |

Note 1: (1) None of the provisions in Article 30 of the Company Law is applicable to the members of the board.
(2) For description of the expertise of independent directors, see the diversity status of the members of the board (p. 15-17 of the Annual Report)
Note 2: Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies
(1) The person, the spouse, and relative within the second degree of kinship, who not an employee, director or supervisor of the company or the affiliates of the company.
(2) The person, the spouse, and underage children, who not hold more than 1% of the shares or who is among the top-10 natural person shareholders.
(3) Not a manager listed in (1) or a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship or closer to anyone listed in (2).
(4) Not a director or supervisor of the Company or the affiliates of the Company.
(5) Not a professional who provides audit or receives no more than NT$500,000 in cumulative compensation in the last two years for commercial, legal, financial, or accounting services to the company or its affiliates, nor is an owner, partner, director, supervisor, or manager, or the spouse of any of the above, of a sole proprietorship, partnership, company, or organization that provides such services to the company or its affiliates.

2.1.1.5 Diversity and Independence of the Board of Directors

Board Diversity

In the interest of board diversity, LITEON strengthens the board of directors and the roles of directors by creating a Nomination Committee. The committee enables a stronger director election mechanism, and builds a board with better professionally trained members from various backgrounds. The committee is responsible for setting the criteria for qualified directors and executive officers. These criteria provide the basis for searching and nominating candidates, establishing and developing the organizational structure for the board and its committees, and devising and regularly reviewing continuing training plans for directors and director and executive officer succession plans.

The board of directors of the company must be composed of experts and scholars from industry, finance, business, investment, information, and communications. Over half of the board members must have industry experience, and there is at least one person in each professional field covering operational judgment, salary management, corporate governance, business management, information security, risk management, and sustainable development management.

The board consists of nine members, including two natural-person directors, three institutional investor and four independent directors. The board is diverse, and individual members are equipped with various core competencies. They are assisted by independent directors from various professional backgrounds to ensure they fulfill their duties effectively. These members have been given the duty to exercise proper governance of the board of directors, to supervise/appoint/instruct the management, and to oversee the company's financial, social, and environmental performance in ways that maximize stakeholders' interests.

(1) Board diversity is achieved through education and work experience as well as training and related backgrounds of board members as follows:

Name	Basic Component										Diversity Situation
	Nationality	Gender	An employee of the Company	Age				Independent directors' tenure			Ability to make operational judgments	Ability to perform accounting and financial analysis	Ability to conduct misagreement	Knowledge of the industry	An international market perspective	Ability to lead	Ability to make policy decisions	Risk Management
				51~60	61~70	71~80	81~90	Less than 3 years	3~9 years	Over 9 years
Tom Soong	R.O.C.	Male	v	v							v		v	v	v	v	v	v
Raymond Soong	R.O.C.	Male					v				v		v	v	v	v	v	v
Representative of Ta-Sung Investment Co., Ltd.: Anson Chiu	R.O.C.	Male			v						v		v	v	v	v	v	v
Representative of Ta-Sung Investment Co., Ltd.: Harvey Chang	R.O.C.	Male	v			v				v		v		v		v	v	v
Representative of Ta-Sung Investment Co., Ltd.: Karin Huang	R.O.C.	Female			v							v		v			v
Albert Hsueh	R.O.C.	Male			v					v	v	v		v			v	v
Mike Yang	R.O.C.	Male			v				v		v		v	v	v	v	v	v
MK Lu	R.O.C.	Male				v			v		v		v	v	v	v	v	v
Jesse Ding	R.O.C.	Male				v		v			v	v		v		v	v	v

LITEON LITE-ON TECHNOLOGY CORP.
Corporate Governance Report

(2) The independent directors possess training in accounting and audit, corporate governance, strategy, information technology, and information security:

① Albert Hsueh is an independent director and the convener of the Audit Committee who is trained in financial accounting and corporate governance and has extensive experience in corporate governance and management as well as skills in financial statement analysis and application.

② Mike Yang is an independent director who has an extensive background in IT and infosec. As the director of a Quanta operation center, Mike Yang has at least 30 years of practical management experience in overseeing computer system design and development, production management planning and implementation, global business expansion, innovative technology integration and application, worldwide branch establishment, international process management, and threat analysis and risk assessment for international trade and public opinion. Mike Yang is in charge of devising and promoting Internet service security and digital data protection measures to counter issues arising from innovation and quality change of business operations. Mike Yang has plenty of experience in leading and managing a team to build a management framework inside the organization, develop a safety culture, handle risk management, and propose solutions.

③ MK Lu is an independent director who had been with Texas Instruments, LITEON, and Sino-American Silicon, and founded Actron Technology. He has been the lead in more than a dozen of mergers and succeeded in turning around many companies. His success in corporate management has earned him the nickname "the Merger King".

④ Jesse Ding is an Independent Director who is skilled in financial revitalization and organizational transformation. With extensive experience, he brings significant value to the company's future operational planning and financial strategy.

(3) The company's current board of directors is composed of 8 members, with a female director ratio of 11% (1/9), which does not meet the 1/3 threshold recommended by the stock exchange.

① Reasons not reaching one-third:

The Company has historically emphasized the professional qualifications of directors and has not imposed mandatory gender quotas. As a result, progress toward gender diversity has been gradual.

② Planning and measures to enhance gender diversity on the board:

In the board election at the 2025 Annual Shareholders' Meeting, the Company had prioritized female candidates during the nomination process and actively seek experienced female professionals from the industry to join the Board.

(4) Composition of Board members

Board Independence

The company actively implements the corporate governance system. In the operation and arrangement of the corporate governance system, the board of directors exercises its functions and powers in accordance with laws. The company respects the professional competencies of the directors, and all motions are discussed thoroughly before the board meetings, and the directors are consulted beforehand on major motions or other projects, and their professional advice is also sought during the meetings, which effectively raises the effectiveness of decision-making on motions and creates a good board meeting culture.

There are 4 independent directors of the company, the number of seats is more than half of the seats of directors, and the consecutive terms of 3 independent directors are not more than three consecutive terms, and they exercise their powers objectively. They review the management and control of the Company's existing or potential risks, etc., so as to supervise the effective implementation of the Company's internal control, the selection (dismissal) of certified public accountants and their independence, and the fair preparation of financial statements.

According to the Company's "Rules for Election of Directors", the cumulative voting system and candidate nomination system are adopted for the selection of directors and independent directors, and shareholders are encouraged to participate. Shareholders who hold a certain number of shares or more may submit a list of director candidates. Qualification review and confirmation of any violations listed in Article 30 of the Company Act shall be conducted and announced in accordance with the law to protect the rights and interests of shareholders, and maintain independence.

There are 2 directors who are spouses or relatives within the second degree of kinship among the directors of the company, and complies with the provisions of Article 26-3, Paragraphs 3 and 4 of the Securities and Exchange Act.

LITEON

LITE-ON TECHNOLOGY CORP.

2026/2/28

2.1.2 Information Regarding Management Team

Title	Nationality	Name	Gender	Date of appointment (office)	Proportion of shareholding		Proportion of shareholding by spouse and underage children		Proportion of shareholding under the title of a third party		Major Background Information	Other positions of other companies	Manager who is the spouse or kin within the 2nd year of the Civil Code			Remarks (Note)
					shares	%	shares	%	shares	%			Title	Name	Relationship
President	R.O.C	Anson Chiu	Male	2013.08.19	1,641,173	0.07%	0	0%	0	0%	Refer to the information of Board Members	Refer to the information of Board Members.	None	None	None	None
Senior Vice President	R.O.C	Jerry Hsu	Male	2020.10.30	160,258	0.01%	32,057	0%	0	0%	Department of Electronic, Lunghwa University of Science and Technology VIF, LITE-ON Technology Corporation.	None	None	None	None	None
Vice President	R.O.C	John Chang	Male	2020.10.30	42,000	0%	0	0%	0	0%	EMBA, National Chiao Tung University AVP, LITE-ON Technology Corporation.	None	None	None	None	None
Vice President / Corporate Governance Officer/ Board Secretariat	R.O.C	Jean Hong	Female	2015.09.07	0	0%	0	0%	0	0%	MBA, Preston University AVP, LITE-ON Technology Corporation. Honor. 2023 41st National Outstanding Manager Award Financial Manager	None	None	None	None	None
Vice President	R.O.C	Don Lin (Resigned on 2025.04.30)	Male	2022.12.06	106,000	0%	0	0%	0	0%	Michigan State University, Master, Electrical Engineering. AVP, LITE-ON Technology Corporation.	None	None	None	None	None
Vice President	Singapore	Wai Chong Shee Toh	Male	2025.04.30	0	0%	0	0%	0	0%	Diploma in Business Studies, Ngee Ann Polytechnic, Singapore Global VIF of Operations, Laird Group (DuPont Group)		None	None	None	None
Vice President / CFO	R.O.C	KT Lim	Male	2025.02.26	0	0%	0	0%	0	0%	Bachelor of Accounting, Nanyang Technological University CEO, AIG Asia Pacific Insurance Pte Ltd, Taiwan Branch	Independent Director, Hotai Insurance Co., Ltd.	None	None	None	None
Principal Accounting Officer	R.O.C	Michelle Hsiao	Female	2022.12.06	20,400	0%	0	0%	0	0%	MBA, University of Texas at San Antonio Senior Director, LITE-ON Technology Corporation.	None	None	None	None	None

This table of other positions of the company or other company only displays offering companies and important subsidiaries.
Note : When the general manager or equivalent (the highest manager) is the same person as the chairman, is a spouse or a relative of each other, the reasons, rationality, necessity, and corresponding measures (such as increasing the number of independent directors, and should have more than half of the directors did not concurrently serve as employees or managers).

2.2 Remuneration Paid during The Most Recent Fiscal Year to Directors and Management Team

2.1.1 Remuneration of Directors, Independent Directors and Management Team

2.2.1.1 Remuneration of Directors and Independent Directors

Unit:NTS thousands

Title	Name	Remuneration (Note 1)	Total Remuneration (A+B+C+D) and Ratio of Total Remuneration to Net Income (N)	Relevant Remuneration Received by Directors Who are Also Employees	Total Compensation (A+B+C+D+E+F+G) and Ratio of Total Compensation to Net Income (N)	Compensation Paid to Directors from the Invested Company Other than the Company's Subsidiary (NOTE 2)
Base Compensation (A)	Severance Pay (B)	Directors Compensation (C)	Allowances (D)	Salary, Bonuses, and Allowances (E)	Severance Pay (F)	Employee Compensation (G)
The company	From All Consolidated Entities	The company	From All Consolidated Entities	The company	From All Consolidated Entities	The company	From All Consolidated Entities
Cash	Stock	Cash	Stock
Chairman	Tom Soong	6,757	6,757	0	0	161,644	161,644
Director	Ta-Sung Investment Co., Ltd. Representative: Keh-Show Lu (NOTE 3)
Director	Ta-Sung Investment Co., Ltd. Representative: Harvey Chang (NOTE 3)
Director	Ta-Sung Investment Co., Ltd. Representative: Karin Huang (Note 3)
Director	Ta-Sung Investment Co., Ltd. Representative: Anson Chiu
Independent Director	Albert Hsueh	0	0	0	0	58,640	58,640
Independent Director	Mike Yang
Independent Director	NR Lu
Independent Director	Drecoor
Independent Director	Harvey Chang (NOTE 4)

Please describe the policy, system, standard, and structure of independent director remuneration, and describe the factors, including responsibilities, risks, and time invested, and their links to amounts of remuneration:
According to Article 20-2 of the LITE-ON Articles of Incorporation, remuneration of directors of the company is determined by the board of directors by accepting the Remuneration Committee's recommendations and taking into account of each director's participation in management of the company and contribution as well as the industry standards worldwide. Moreover, Article 23 of the LITE-ON Articles of Incorporation requires that the company pay a director bonus at no more than $1.5\%$ of the profit before tax and employee and director remuneration for the current year. Therefore, the amounts of remuneration for the company's independent directors, being based on personal performance and the company's business results and linked to future operational risks, should be considered reasonable.
Remuneration paid to directors for their services from the Company, all consolidated entities, and the invested companies except the above-mentioned figures: None.

Range of Remuneration to directors

Range of Remuneration	Name of Directors
	Total of (A+B+C+D)		Total of (A+B+C+D+E+F+G)
	The company	From All Consolidated Entities (H)	The company	From All Consolidated Entities and Invested Companies (I)
NT$0 ~ NT$999,999
NT$1,000,000 ~ NT$1,999,999
NT$2,000,000~ NT$3,499,999
NT$3,500,000~ NT$4,999,999
NT$5,000,000~ NT$9,999,999	Ta-Sung Investment Co.,Ltd. (Representative: Karin Huang (NOTE3)), Harvey Chang (NOTE 4), Jesse Ding (NOTE 4)	Ta-Sung Investment Co.,Ltd. (Representative: Karin Huang (NOTE3)), Harvey Chang (NOTE 4), Jesse Ding (NOTE 4)	Ta-Sung Investment Co.,Ltd. (Representative: Karin Huang (NOTE3)), Harvey Chang (NOTE 4), Jesse Ding (NOTE 4)	Ta-Sung Investment Co.,Ltd. (Representative: Karin Huang (NOTE3)), Harvey Chang (NOTE 4), Jesse Ding (NOTE 4)
NT$10,000,000~ NT$14,999,999	Raymond Soong, Ta-Sung Investment Co.,Ltd. (Representative: Keh-Shew Lu, Harvey Chang(NOTE 3) and Anson Chiu), Albert Hsueh, Mike Yang, and MK Lu	Raymond Soong, Ta-Sung Investment Co.,Ltd. (Representative: Keh-Shew Lu, Harvey Chang(NOTE 3) and Anson Chiu), Albert Hsueh, Mike Yang, and MK Lu	Raymond Soong, Ta-Sung Investment Co.,Ltd. (Representative: Keh-Shew Lu, Harvey Chang(NOTE 3) and Anson Chiu), Albert Hsueh, Mike Yang, and MK Lu	Raymond Soong, Ta-Sung Investment Co.,Ltd. (Representative: Keh-Shew Lu, Harvey Chang(NOTE 3) and Anson Chiu), Albert Hsueh, Mike Yang, and MK Lu
NT$15,000,000~ NT$29,999,999
NT$30,000,000~ NT$49,999,999			Anson Chiu	Anson Chiu
NT$50,000,000~ NT$99,999,999			Tom Soong	Tom Soong
Over NT$100,000,000	Tom Soong	Tom Soong
Total	10	10	10	10

The content of the remuneration disclosed in this sheet is different from the concept of the Income Tax Act. Therefore, the purpose of this sheet is only for information disclosure but not for withholding tax.
NOTE 1: Please refer to the LITE-ON TECHNOLOGY CORP.'s official site for The Rules for Evaluating Board of Directors and Functional Committee Performance.
NOTE 2: The Compensation Paid to Directors are from the LITE-ON TECHNOLOGY CORP.'s investment companies.
NOTE 3: Mr. Keh-Shew Lu, corporate representative of Ta-Sung Investment Co., Ltd., completed his term of office and stepped down following the re-election of directors at the 2025 Annual General Meeting of Shareholders held on May 20, 2025. Mr. Harvey Chang and Ms. Karin Huang were appointed as corporate representatives.
NOTE 4: The tenure of Mr. Harvey Chang expired on May 20, 2025, as he was not re-elected at the 2025 Annual General Meeting of Shareholders. Mr. Jesse Ding was appointed as Independent Director thereafter.

2.2.1.2 Remuneration of Supervisors

Not applicable. The company has established the Audit Committee on June 21, 2007.

2.2.1.3 Compensation Paid to Management Team
Unit:NT$ thousands

Title	Name	Salary (A)		Severance Pay and Pensions (B)(Note2)		Bonuses and Allowances (C)(Note3)		Employees' Profit Sharing Bonus (D)(Note4)				Total Compensation (A+B+C+D)and Ratio of Total Compensationto Net Income (%)		CompensationPaid toDirectors fromthe InvestedCompanyOther than theCompany'sSubsidiary
		Stand-alone	Consolidated	Stand-alone	Consolidated	Stand-alone	Consolidated	Stand-alone		Consolidated		Stand-alone	Consolidated
								Cash	Stock	Cash	Stock
President	Anson Chiu	43,943	43,943	1,522	1,522	(47,296)	(47,296)	137,433	0	137,433	0	Amount:135,602Ratio : 0.90%	Amount:135,602Ratio : 0.90%	45
Senior Vice President	Jerry Hou
Vice President	John Chang
Vice President /Corporate Governance Officer/Board Secretariat	Jean Hong
Vice President	Don Lin(Resigned on April 30, 2025)
Vice President	Wai Chong Shee Toh(On board on April 30, 2025)
Vice President /CFO	KT Lim
Principal Accounting Officer	Michelle Hsiao

Note1: These amounts did not include compensation for the period after Don Lin resigned on April 30, 2025, and before Wai Chong Shee Toh on board on April 30, 2025.
Note2: Pensions funded according to applicable law.
Note3: In accordance with IFRS2 "Share-Based Payment", new restricted employee shares are included in the compensation.
Note4: Refers to the amount approved by the Compensation Committee for the employee's remuneration in the most recent year (2025).

Range of compensation to management executives

Range of compensation to management executives	Name of management executives
	On a stand-alone basis	From All Consolidated Entities and Invested Companies
NT$0 ~NT$ 999,999	Don Lin	Don Lin
NT$1,000,000-NT$1,999,999
NT$2,000,000-NT$3,499,999
NT$3,500,000-NT$4,999,999
NT$5,000,000-NT$9,999,999	Jerry Hsu, KT Lim, Michelle Hsiao	Jerry Hsu, KT Lim, Michelle Hsiao
NT$10,000,000-NT$14,999,999	Jean Hong	Jean Hong
NT$15,000,000-NT$29,999,999	John Chang, Wai Chong Shee Toh	John Chang, Wai Chong Shee Toh
NT$30,000,000-NT$49,999,999	Anson Chiu	Anson Chiu
NT$50,000,000-NT$99,999,999
Over NT$100,000,000
Total	8	8

The definition of remuneration disclosed in this table is not identical to that of income under the Income Tax Act. Hence, this table is intended for disclosure purpose only, and should not be used for tax returns.

2025

Annual Report

2.2.1.4 Employees' Profit Sharing Bonus Paid to Management Team

As of February 28, 2026

Unit:NT$ thousands

Title	Name	Stock bonus	Cash bonus	Total	As a % of net profit
President	Anson Chiu	0	137,433	137,433	0.91%
Senior Vice President	Jerry Hsu
Vice President	John Chang
Vice President / Corporate Governance Officer/ Board Secretariat	Jean Hong
Vice President	Don Lin (Resigned on April 30, 2025)
Vice President	Wai Chong Shee Toh (On board on April 30, 2025)
Vice President / CFO	KT Lim
Principal Accounting Officer	Michelle Hsiao

2.2.1.5 The Individual Remuneration Paid to each of its Top Five Management Personnel (listed individually by name and payment type): Not Applicable.

2.2.2 Analysis Results for the Ratio of Total Remuneration to the Net Income

Respectively describe and compare the analysis results for total remunerations paid to the directors and management team in the last two years as a percentage of the net income; and describe the relevance between the remuneration policy, standards and combinations, remuneration setting procedures, and business performance:

Analysis results for total remunerations paid to the directors and management team in the last two years as a percentage of the net income and the relevance to business performance:

Item	Total remunerations as a percentage of net income
	2024		2025
	LITEON	Consolidated	LITEON	Consolidated
Directors	1.47%	1.47%	1.52%	1.52%
Management team	1.14%	1.14%	0.90%	0.90%

Relevance between remuneration policy for LITEON directors, management team and business performance and future risks:

The remuneration of the Company's Directors is determined in accordance with Articles 20-2 and 23 of the Company's Articles of Incorporation. The Board of Directors determines such remuneration after adopting the recommendations of the Compensation Committee, taking into consideration the duties and responsibilities, level of commitment, and contributions of each Director to the Company's operations, as well as the Company's overall operating performance, so as to ensure that reasonable remuneration is granted.

The policy of remuneration of management team follows the LITEON Compensation Management Guidelines and other related regulations. Remuneration is based on the average level of pay offered by competition for the same position, the authority and responsibility of the position, and is linked to the company's operational performance indicators, including financial and non-financial indicators such as Enterprise Sustainability (ESG) contribution to pay remuneration.

The procedure of setting remuneration is based on evaluation criteria in the LITEON "Rules for Evaluating Board of Directors and Functional Committee Performance" and the "Performance Management Guidelines". In addition to the company's overall business results and future operating risks and trends in the industry, the personal target completion rate and contribution to the company's business results are also taken into consideration in the calculation of a reasonable payment. Related performance evaluation and pay reasonableness is reviewed by the Compensation Committee and the board of directors. The remuneration system is reviewed as needed to reflect actual business performance and regulations and to maintain the balance between sustainable development and risk management.

Manager Performance Indicators:

Performance Indicator	Description
Financial (70%)	Follow the company's business policies and sales targets and develop performance indicators to reflect the responsibilities of the position.
Contribution to net profit before tax/Annual growth/ Budget execution/Annual revenue growth, net operating profit budget execution, etc.
Non-financial (30%)	Sustainability (20%)	Total quality management, internal control, training and succession, risk management and information security, customer satisfaction, employee satisfaction, and carbon reduction, codes of conduct etc..
	Behavioral indicators (10%)	Six Core Principles/Three Target Behaviors
Evaluate the performance of behavioral indicators based on the two principles of the expected number and duration of behavioral indicators exhibited by the evaluator during the evaluation period.

Remuneration of supervisors: Not applicable. The Company has established the Audit Committee on June 21, 2007

2025

2.3 Implementation of Corporate Governance

2.3.1 Board of Directors

2.3.1.1 Board Meetings Attendance

The Board held 12 meetings (A) in the recent period of time (from January 1st, 2025 to February 28th, 2026) with the attendance of the directors specified as below:

| Title | Name | Attend (sit in) in person (B) | Attend by proxy | Attendance rate (%)
[B / A] | Remarks |
| --- | --- | --- | --- | --- | --- |
| Chairman | Tom Soong | 12 | 0 | 100 | |
| Director | Raymond Soong | 10 | 2 | 83 | |
| | Ta-Sung Investment Co., Ltd.
Representative: Anson Chiu | 10 | 2 | 83 | |
| | Ta-Sung Investment Co., Ltd.
Representative: Keh-Shew Lu/Harvey Chang | 6 | 6 | 50 | Reassigned Mr. Harvey as the representative on May 20, 2025. |
| | Ta-Sung Investment Co., Ltd.
Representative: Karin Huang | 7 | 0 | 100 | New director |
| Independent Director | Albert Hsueh | 12 | 0 | 100 | |
| | Mike Yang | 11 | 1 | 92 | |
| | MK Lu | 12 | 0 | 100 | |
| | Jesse Ding | 7 | 0 | 100 | New Independent director |
| | Harvey Chang | 5 | 0 | 100 | Resigned on May 20, 2025 |

2.3.1.2 Annotations:

(1) Securities and Exchange Act §14-3 resolutions, and others

Minutes of Board meetings where Article 14-3 of the Securities and Exchange Act is applicable and contained information on the objection or qualified opinions of the independent directors on record or in writing: none.

(2) The Board Meeting Attendance Status of Independent Director

$\odot$ : Attend (sit in) in person $\Delta$ : Attend by proxy $\diamond$ : Non-independent director (not applicable)

Board	Harvey Chang	Albert Hsueh	Mike Yang	MK Lu	Jesse Ding
12th Term, 21st Meeting on Feb. 26, 2025	☉	☉	☉	☉	-
12th Term, 22nd Meeting on Mar. 21, 2025	☉	☉	☉	☉	-
12th Term, 23rd Meeting on Mar. 21, 2025	☉	☉	☉	☉	-
12th Term, 24th Meeting on Apr. 09, 2025	☉	☉	Δ	☉	-
12th Term, 25th Meeting on Apr. 30, 2025	☉	☉	☉	☉	-
13th Term, 1st Meeting on May 20, 2025	-	☉	☉	☉	☉
13th Term, 2nd Meeting on May 20, 2025	-	☉	☉	☉	☉
13th Term, 3rd Meeting on Jul. 30, 2025	-	☉	☉	☉	☉
13th Term, 4th Meeting on Aug. 18, 2025	-	☉	☉	☉	☉
13th Term, 5th Meeting on Oct. 29, 2025	-	☉	☉	☉	☉
13th Term, 6th Meeting on Jan. 21, 2026	-	☉	☉	☉	☉
13th Term, 7th Meeting on Feb. 25, 2026	-	☉	☉	☉	☉

2025

(3) Recusals of Directors due to conflicts of interests: Three occasions

At the 21st meeting of the 12th Board of Directors, regarding the donation proposal to the Lite-On Cultural Foundation, Chairman Tom Soong and Directors Raymond Soong and Anson Chiu abstained from participating in the discussion and voting due to conflicts of interest, and they did not appoint any other directors to exercise voting rights on their behalf.
At the 23rd meeting of the 12th Board of Directors, regarding the proposal for the nomination of director and independent director candidates for the Company's 2025 Annual General Shareholders' Meeting, Chairman Tom Soong, Directors Raymond Soong and Anson Chiu, and Independent Directors MK Lu, Albert Hsueh, Harvey Chang, and Mike Yang (seven members in total) were deemed to have personal conflicts of interest. They each recused themselves from the discussion and voting on matters related to their own interests and did not appoint any other directors to exercise voting rights on their behalf.
At the 7th meeting of the 13th Board of Directors, regarding the donation proposal to the Lite-On Cultural Foundation, Chairman Tom Soong and Directors Raymond Soong and Anson Chiu abstained from participating in the discussion and voting due to conflicts of interest, and they did not appoint any other directors to exercise voting rights on their behalf.

(4) Implementation of the performance evaluation of the board of directors and functional committees:

Evaluation Cycle	Period of Evaluation	Scope of Evaluation	Method of Evaluation	Evaluation Content
Performed once a year	Jan. 01, 2025 to Dec. 31, 2025	Board Performance Evaluation	Internal evaluation of the board	① Participation in the operation of the company.
② Improvement of the quality of the board of directors' decision making.
③ Composition and structure of the board of directors.
④ Election and continuing education of the directors.
⑤ Internal control.
		The evaluation of individual directors	Self-evaluation by individual board members	① Familiarity with the goals and missions of the company.
② Awareness of the duties of a director.
③ Participation in the operation of the company.
④ Management of internal relationship and communication.
⑤ The director's professionalism and continuing education.
⑥ Internal control.
		Evaluation of the performance of functional committees (Audit/Compensation/Nomination/Growth Strategy/Corporate Sustainability Committee)	The internal evaluation of functional committees	① Participation in the operation of the company;
② Awareness of the duties of the functional committee;
③ Improvement of quality of decisions made by the functional committee;
④ Makeup of the functional committee and election of its members
⑤ Internal control.

The performance evaluation indicators for the Board of Directors and functional committees for the year 2025 have been established based on the Company's operations and needs, ensuring that the evaluation criteria are appropriate and suitable for the Company's performance assessment. The indicators have been reviewed by the Compensation Committee.
When electing or nominating members of the board of directors, the Company base its election on the evaluation results of the performance of the board and base its determination of an individual director's remuneration on the evaluation results of his or her performance.
The Company reported the evaluation results in the first quarterly Compensation Committee (Feb.06, 2026), Nomination Committee (Feb.06, 2026) and Board(Feb.25, 2026) meetings, the results will be a reference for enhancing the professional competence of the Board of Directors and had been announced on the company website for investors' reference.

(5) Measures taken to strengthen the functionality of the Board Targets and performance of the board's functions for last year and most recent year:

For strengthening and accelerating the growth strategy of the Company and the whole business group, the Company has established the Growth Strategy Committee in 2010. The Committee is authorized by Board of Directors to direct and review the Company and the Group's overall growth strategies, and to preview the important investment projects, and periodically reports the resolutions to the Board of Directors.
The Company continues to dedicate itself to enhancing corporate governance and improving the transparency, timeliness, and fairness of financial information disclosure. In the 12th "Information Disclosure Evaluation" conducted by the Securities and Futures Institute (SFI) in 2015, the Company received an A++ rating. In the "Corporate Governance Evaluation" organized by the Taiwan Stock Exchange (TWSE), the Company was ranked among the top 5% of listed and OTC companies in the 2nd evaluation; ranked within the top 6% to 20% of listed companies in the 3rd and 7th evaluations; and ranked among the top 5% of listed companies in the 4th to 6th evaluations and the 8th to 11th evaluations.
To be in accordance with the international trend of sustainable governance, LITEON had passed the proposal to set up the Corporate Sustainability Committee that directly report to the Board. The committee is responsible for scheming up sustainable development policy, extended determination and supervision. ESG accountability provides the direction for operations in risk management, information security management, ethical corporate management, effective management of the RBA code of conduct, community involvement, sustainable supply chain management, sustainable product design, environmental sustainability, and stakeholder communication and information disclosure.
The Company formulated the "Risk Management Policy and Procedures" in February 2020 in view of strengthening corporate governance and improving the Company's management and control of risk; wherein it established risk management mechanisms which include early identification, accurate measurement, effective supervision, and rigorous controls. Within the scope of bearable risk, it prevents possible losses and continuously adjusts and improves best risk management practices based on changes in the internal and external environments, thus protecting the interests of employees, shareholders, partners, and clients, increasing the value of the Company, and achieving the principle of optimizing allocation of company resources. Furthermore, the annual risk management plan and operation were presented to the Corporate Sustainability Committee and the Audit Committee in 2025. The Audit Committee in turn presented the results to the board of directors.
In following the direction of corporate governance and strengthening the roles of the board, LITEON implemented the "Nomination Committee Charter" in February 2021 and passed the establishment of the "Nomination Committee". The Nomination Committee devises the criteria for directors and executive officers and seeks and nominate candidates based on these criteria. The Nomination Committee establishes and develops the organizational structure of the board and its committees. It also conducts performance evaluation for the board of directors and its committees, performance evaluation for directors and executive officers, and independence assessment of independent directors. The Nomination Committee establishes and reviews regularly continuing training programs for director and succession plans of directors and executive officers.

Corporate Governance Report
28

2025

2.3.2 The Operation of the Audit Committee

2.3.2.1 Audit Committee Meeting Status

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

Fair presentation of the financial reports of Lite-On Technology Corporation.
The hiring (and dismissal), independence, and performance of certified public accountants of Lite-On Technology Corporation.
The effective implementation of the internal control system of Lite-On Technology Corporation.
Compliance with relevant laws and regulations by Lite-On Technology Corporation.
Management of the existing or potential risks of Lite-On Technology Corporation.

The Audit Committee is responsible for reviewing the following:

The adoption of or amendments to the internal control system.
Assessment of the effectiveness of the internal control system.
The adoption or amendment, of the procedures for handling financial or business activities of a material nature, such as acquisition or disposal of assets, derivatives trading, loaning of funds to others, and endorsements or guarantees for others.
Matters in which a director is an interested party.
Asset transactions or derivatives trading of a material nature.
Loans of funds, endorsements, or provision of guarantees of a material nature.
The offering, issuance, or private placement of equity-type securities.
The hiring or dismissal of a certified public accountant, or their compensation.
The appointment or discharge of a financial, accounting, or internal audit officer.
Annual financial reports which are signed or sealed by the chairperson, managerial officer, and accounting officer.
Proposals regarding business reports and profit distribution or loss replenishment.
Other material matters as may be required by this Corporation or by the competent authority.

The Audit Committee held 9 meetings (A) in the recent period of time (from January 1, 2025 to February 28, 2026) with the attendance of the independent directors specified below:

| Title | Name | Attend (sit in) in person (B) | Attend by proxy | Attendance rate (%)
【B / A】 | Note |
| --- | --- | --- | --- | --- | --- |
| Independent Director | Albert Hsueh | 9 | 0 | 100 | |
| | Mike Yang | 8 | 1 | 89 | |
| | MK Lu | 9 | 0 | 100 | |
| | Jesse Ding | 6 | 0 | 100 | New Independent Director |
| | Harvey Chang | 3 | 0 | 100 | Resigned on May 20, 2025 |

2.3.2.2 Annotations:

(1) Resolutions related to Securities and Exchange Act §14-5, and others

Issues stated in Article 14-5 of the Securities and Exchange Act of the ROC passed by the Audit Committee:

Audit Committee	Content of motion	Article 14-5 of the Securities and Exchange Act of the ROC
The 21st meeting of the 6th term
Feb. 26, 2025	1. The Company's consolidated financial report of 2024.
2. Dividend distribution of 2024.
3. The appointment, remuneration and independence and competency assessment of the company's certified public accountants in 2025.
4. Appointment of the company's financial manager.
5. The Company's 2024 business report.
6. Passed the Company's 2024 Statement of Internal Control System.	v
v
v
v
v	All attendees of Independent Directors have no objection	All attendees of Directors have no objection
The 22nd meeting of the 6th term
Apr. 09, 2025	1. Proposal to amend the Company's "Procedures for Acquisition or Disposal of Assets."
2. Proposal for the Company to implement a share buyback program.	v
v
The 23rd meeting of the 6th term
Apr. 30, 2025	1. To inject US$25 million into Lite-On Vietnam Co., Ltd., a wholly owned subsidiary of the Company, in response to its revenue growth and capital expenditures for capacity expansion.
2. To cancel and deregister the restricted employee shares that have been repurchased by the Company, and to set the record date for the capital reduction.
3. The Company's consolidated financial statements for the first quarter of 2025.
4. The proposal for the distribution of earnings for the first quarter of 2025.	v
v
v
v
The 1st meeting of the 7th term
May 20, 2025	Proposal to elect the convener and chairperson of the 7th Audit Committee of the Company.

Audit Committee	Content of motion	Article 14-5 of the Securities and Exchange Act of the ROC	Minutes of Audit Committee	Company reaction base on the opinion of Audit Committee
The 2nd meeting of the 7th term Jul 30, 2025	1. To approve the application by Lite-On Electronics (Guangzhou) Co., Ltd. and Lite-On Technology (Jiangsu) Co., Ltd., wholly owned indirect subsidiaries of the Company, to provide cross-border loans of CNY 720 million and CNY 670 million, respectively, to the Company.	v	All attendees of Independent Directors have no objection	All attendees of Directors have no objection
	2. The Company's consolidated financial statements for the second quarter of 2025.	v
	3. Proposal to change the certified public accountants due to internal rotation within the auditing firm.	v
	4. The proposal for the distribution of earnings for the second quarter of 2025.	v
	5. Proposal to amend the Company's Approval Matrix and Authorization Procedures.	v
	6. The Company's business report for the second quarter of 2025.	v
	7. Proposal to establish the "Procedures for Share Repurchase Operations."	v
The 3rd meeting of the 7th term Aug 18, 2025	8. To cancel and deregister treasury shares repurchased for the purpose of protecting the Company's credit and shareholders' equity, and to set the record date for the capital reduction.	v	All attendees of Independent Directors have no objection	All attendees of Directors have no objection
	9. To cancel and deregister the restricted employee shares that have been repurchased by the Company, and to set the record date for the capital reduction.	v
The 4th meeting of the 7th term Oct 29, 2025	1. Proposal for capital expenditure investment and capital injection for LITE-ON VIETNAM CO., LTD., a wholly owned subsidiary of the Company.	v
	2. Proposal for the Company to deposit RMB funds with Citibank through its subsidiary Lite-On Singapore Pte. Ltd., with Citibank providing corresponding credit facilities.	v
	3. Proposal for the issuance of the Company's first and second unsecured convertible bonds in the domestic market.	v
	4. The Company's consolidated financial statements for the third quarter of 2025.	v
	5. The proposal for the distribution of earnings for the third quarter of 2025.	v
The 5th meeting of the 7th term Jan 21, 2026	Proposal for the Company to conduct a public tender offer for the common shares of Arcadyan Technology Corporation.	v	All attendees of Independent Directors have no objection	All attendees of Directors have no objection
		v

Other issues not passed by the Audit Committee but resolved by more than two-thirds of the directors: none

(2) Recusals of Independent Directors due to conflicts of interests

The act of the avoidance of the conflict of interest by the independent director: none.

(3) The communications between the independent directors, the Chief Audit Officer and the certified public accountants:

Communications are established through Audit Committee or individually with independent directors via meetings or e-mails.

i. The Chief Audit Officer reported to the Audit Committee on the establishment and amendment to the internal control system.
ii. The Chief Audit Officer reported to the Audit Committee on the annual self-assessment of the implementation and results on the internal control systems.
iii. The Chief Audit Officer reported to the Audit Committee on the annual audit plan and the implementation of the plan quarterly.
iv. The Chief Audit Officer reported to the Chairman of Audit Committee on audit projects quarterly.
v. The Chief Audit Officer reported to the Audit Committee on the findings of each audit and the tracking of corrective actions and preventive actions.
vi. The Chief Audit Officer provided information on the addition or amendment of laws governing securities and exchange to the Audit Committee.
vii. The Chief Audit Officer presented to the Audit Committee the report on the conduct of special audits prescribed by the committee and the findings.
viii. The certified public accountants reported to the Audit Committee the findings of their quarterly/annually review or audits on the Company's financial results, and also the communication of the relevant law and regulation or any other modified issues.

The Audit Committee consists entirely of independent directors. The Auditors reported to the Audit Committee on the major audit matters and audit results.

Three ways of communication between the Chief Audit Officer and independent directors as below :

(1) Communication via the Audit Committee quarterly.
(2) Communication with the Chairman of the Audit Committee via project meeting quarterly.
(3) Audit reports and follow-up reports reviewed by the Audit Committee irregularly.

The communication channel between the independent directors and the Chief Audit Officer functioned well. The communication between independent directors and the internal auditors are listed in the table below.

a. Communication through the Audit Committee

Meeting Dates	Communication Matters	Results
Feb.26, 2025	1. Reviewing the internal auditor's work report in 2024 (refer to the explanation of the "Approval of the 2024 Internal Control Statement" proposal).2. Reviewing the progress of statutory works.3. Reviewing the key audit findings and planned corrective actions in the fourth quarter of 2024.4. Reviewing the report for Whistleblowing in the fourth quarter of 2024.	There are no comments at this meeting.
Apr.30, 2025	1. Reviewing the progress of statutory works.2. Establishment of LITEON's RBA Self-Assessment Checklist.3. Reviewing the report for Whistleblowing in the first quarter of 2025.	There are no comments at this meeting.
Jul. 30, 2025	1. Reviewing the progress of planned audit works in the second quarter of 2025.2. Completion of the Group's Raw Material Allocation Dashboard to enhance business resilience.3. Assistance to the Tianjin Plant in rectifying the freight-forwarder pricing mechanism to improve operational efficiency.4. Reviewing the report for Whistleblowing in the second quarter of 2025.	There are no comments at this meeting.
Oct. 29, 2025	1. Reviewing the progress of planned audit works in the third quarter of 2025.2. Reviewing the report for Whistleblowing in the third quarter of 2025.	There are no comments at this meeting.
Feb. 25, 2026	1. Reviewing the internal auditor's work report in 2025 (refer to the explanation of the "Approval of the 2025 Internal Control Statement" proposal).2. Execution status of legal compliance Items by the internal audit center3. Digital audit findings on emerging risks and management issues in the fourth quarter of 20254. Midway H2 audit report5. Reviewing the report for Whistleblowing in the fourth quarter of 2025	There are no comments at this meeting.

b. Project meeting between Chief Audit Officer and Chairman of Audit Committee

Date/Quarter	Communication Matters	Results
Mar. 21, 2025 the first quarter of 2025	1. Reviewing the progress of 2024 Annual Audit Plan and follow-up on the improvements of audit findings. 2. Optimizing procedure for employee travel - Identification of risks related to delayed reconciliation of employee travel advances. 3. Follow-up progress on the third-party valuation report for the Kaohsiung LITEON Building project. 4. Progress on integrating the plant-construction SOPs under the Corporate Service Center (CSC).	All audits have been executed and reported according to the instructions of the Audit Committee Chairman.
Jun. 19, 2025 the second quarter of 2025	1. Reviewing the progress of planned audit works for the first half of 2025. 2. Enhancing business resilience through the completion of the Group's Raw Material Allocation Dashboard enabled by data analytics. 3. Operational analysis revealed discrepancies in freight-forwarder pricing mechanisms between OPS SBU Tianjin and Changzhou Plant 2. 4. Establishment of RBA internal self-assessment teams and procedures at the factory level.	All audits have been executed and reported according to the instructions of the Audit Committee Chairman.

c. Audit reports and follow-up reports review

Date/Quarter	Communication Matters	Results
Sep. 09, 2025
the third quarter of 2025	1. Reviewing the progress of planned audit works for the first three quarters of 2025.
2. Leveraging AI-driven big-data analysis to achieve transparency in material, labor, and overhead data, ensuring zero-error cost control.
3. Leveraging AI-driven big-data analysis to prevent unauthorized material withdrawals, achieving zero-risk material management.
4. Implementation of compliance management to enhance the scrap disposal process at the Kaohsiung Plant.	All audits have been executed and reported according to the instructions of the Audit Committee Chairman.
Oct. 23, 2025
the fourth quarter of 2025	1. Reviewing the progress of the 2025 Annual Statutory Audit Plan.
2. Professional applications of AI and big-data analytics in the fourth quarter of 2025.
3. The 2026 Annual Audit Plan adopts a “dual-pillar strategy” to balance statutory requirements and value creation.	All audits have been executed and reported according to the instructions of the Audit Committee Chairman.
Period	Communication Matters	Results
---	---	---
Jan.01~Dec.31,2025	During Jan 1 to Dec,31, 2025, the internal auditors have sent the audit reports and follow-up reports to the Audit Committee 42 times.	The Chairman of the Audit Committee has commented on each audit report. The internal auditors have followed the instructions and reported to the Audit Committee.
Jan.01~Feb.28,2026	During Jan 1 to Feb.28, 2026, the internal auditors have sent the audit reports and follow-up reports to the Audit Committee 12 times.	The Chairman of the Audit Committee has commented on each audit report. The internal auditors have followed the instructions and reported to the Audit Committee.

The communication channel between the independent directors and the certified public accountants functioned well. The communication between independent directors and the certified public accountants are listed in the table below.

The Audit Committee consists entirely of independent directors. The certified public accountants reported to the Audit Committee on the major matters and financial results of their quarterly reviews/annual audits, and also the communication of the updated regulations relating to the company's operation and finance. The certified public accountants will initiate direct communication with the committee when deemed necessary, and currently, communication is good between the parties.

Meeting Dates	Communication matters	Results
Feb. 26, 2025	1. The certified public accountants reported to the Audit Committee on the results and the major matters of consolidated and standalone financial reports of 2024.
2. The certified public accountants reported on the amounts of the audit and non-audit service fees provided by Deloitte in 2024.	Consolidated and standalone financial reports of 2024 were submitted to the Board of Directors and was approved after being approved by the Audit Committee, and was publicly announced and reported to the authority as scheduled.
Apr.30, 2025	The certified public accountants reported to the Audit Committee on the results and major review matters of 2025 Q1 consolidated financial report.	Consolidated financial reports of 2025Q1 was submitted to the Board of Directors and was approved after being approved by the Audit Committee, and was publicly announced and reported to the authority as scheduled.
Jul. 30, 2025	The certified public accountants reported to the Audit Committee on the results and major review matters of 2025 Q2 consolidated financial report.	Consolidated financial reports of 2025Q2 was submitted to the Board of Directors and was approved after being approved by the Audit Committee, and was publicly announced and reported to the authority as scheduled.

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Meeting Dates	Communication matters	Results
Oct. 29, 2025	1. The certified public accountants reported to the Audit Committee on the results and major review matters of 2025 Q3 consolidated financial report. 2. The certified public accountants reported to the Audit Committee on the planning key audit matters of 2025 and auditing planning of each period of 2026. 3. The certified public accountants submitted the list of non-assurance services that may be to be provided in next year, and stated that they will follow the internal guidelines established by the company to comply with the standards of the IESBA.	Consolidated financial reports of 2025Q3 was submitted to the Board of Directors and was approved after being approved by the Audit Committee, and was publicly announced and reported to the authority as scheduled.
Feb. 25, 2026	1. The certified public accountants reported to the Audit Committee on the results and the major matters of consolidated and standalone financial reports of 2025. 2. The certified public accountants reported on the amounts of the audit and non-audit service fees provided by Deloitte in 2025.	Consolidated and standalone financial reports of 2025 were submitted to the Board of Directors and was approved after being approved by the Audit Committee, and was publicly announced and reported to the authority as scheduled.

2.3.2.3 Attendance of Supervisors at Board Meetings:

The Company has established the Audit Committee on June 21 2007 to perform the functions of the supervisors as required by law.

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

Assessment Item	Implementation Status			Non-implementation and Its Reason(s)
	Yes	No	Explanation
1. Does the company establish and disclose the Corporate Governance Best-Practice Principles based on "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"?	V		The company has established the LITE-ON Technology Corporation Corporate Governance Best Practice Principles based on the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies. The Company's Best Practice Principles have been passed and implemented by resolution of a board of directors meeting, and disclosed and made the principles available for download on the company website. In addition to compliance with the laws and regulations, the company's corporate governance practices are built within an effective corporate governance framework to protect the shareholders' rights, strengthen the board's functions, ensure respect for stakeholders' rights, and increase transparency.	In compliance with the Best Practice Principles
2. Shareholding Structure & Shareholders' Rights				In compliance with the Best Practice Principles
(1) Does Company have Internal Operation Procedures for handling shareholders' suggestions, concerns, disputes and litigation matters. If yes, has these procedures been implemented accordingly?	V		(1) The company has set up internal operation procedures and appointed a spokesperson, a deputy spokesperson, and representatives of legal department to handle shareholders' suggestions, concerns, disputes and litigation matters. The procedures have been implemented accordingly.
(2) Does Company possess a list of major shareholders and beneficial owners of these major shareholders?	V		(2) The company is able to track shareholding by principal shareholders who hold 10% or more of the company's shares. The company also files the information with the authority as required.
(3) Has the Company built and executed a risk management system and "firewall" between the Company and its affiliates?	V		(3) The company has established the Subsidiary Management Guidelines and the Operating Procedures for Management, Business, and Financial Interactions between Affiliates to keep risks between the company and its affiliates under adequate control and create a sufficient firewall.
(4) Has the Company established internal rules prohibiting insider trading on undisclosed information?	V		(4)A. The company has implemented "the Material Insider Information Procedures" (including major data processing, transmission, confidentiality, preservation, disclosure mechanisms and insider transaction prevention, laws and regulations, etc.), expressly stipulating that directors, managers and employees must not disclose Known internal material information to others, not to inquire or collect from companies who have knowledge of the company's internal material information. Company's undisclosed internal material information that is not related to his or her position, and to know the company's undisclosed internal material information for non-execution of business It must not be disclosed to others.
			B. The Company arranges for its directors to take 6 hours of continuing education each year; it also educates current directors on laws and regulations related to prevention of insider trading at least once per year. The "Material Insider Information Procedures" is listed as an annual compulsory education and training for all colleagues (including new recruits). It is aimed at the major violations of the company's internal major information (such as insider trading), the huge impact that the behavior may have on the company, and the law disciplinary regulations and other propaganda were conducted to guide colleagues to review the attitudes and legal procedures that should be followed when handling important information within the company. Course briefings and video files are placed in the internal staff system throughout the year, providing a variety of learning channels for all colleagues. For course name, number of participants, and duration, please refer to Chapter IV, "Operational Highlights–Section V Labor Relations," in this Annual Report.

Assessment Item	Implementation Status			Non-implementation and Its Reason(s)
	Yes	No	Explanation
3. Composition and Responsibilities of the Board of Directors				In compliance with the Best Practice Principles
(1) Has Board of Directors established a diversification policy and a specific management goal, and has it been implemented accordingly?	V		(1) The company has stated explicitly its board diversity policy in the Corporate Governance Best Practice Principles. The company considers the industry and professional background and the field of work and experience of individuals and selects candidates with the knowledge, skills, and disposition necessary to perform the duties to be its directors. The company's business operations and its overall development can derive benefits from the approach. And implement the specific management objectives of directors concurrently serving as company officers not exceed one-third of the total number of the board members.The Company is committed to establishing a diverse and professional Board composition. Its members include experts and scholars from various fields such as industry, finance, business, investment, information technology, and communications. More than half of the directors must have industry experience, and the Board must include at least one member with expertise in each of the following areas: operational judgment, compensation management, corporate governance, business management, information security, risk management, and sustainability management. The Company also promotes gender diversity by ensuring that at least one board seat is held by a female director.
(2) Does the company voluntarily establish other functional committees in addition to the Compensation Committee and the Audit Committee?	V		(2) In addition to establishing the Audit Committee(Set in 2007) and the Compensation Committee(Set in 2008) as required by law, the company has created below functional committees.A. The Growth Strategy committee(Set in 2010) is authorized by board of directors to direct and review the company and the Group's overall growth strategies and to preview the important investment projects.B. To be in accordance with the international trend of sustainable governance, LITEON had passed the proposal to set up the Corporate Sustainability Committee (Set in 2019) that directly report to the Board. The committee is responsible for scheming up sustainable development policy, extended determination and supervision. Nine subcommittees are comprised in the committee and in charge of the promotion and practice of the work in RBA, social involvement, sustainable supply chain management, environmental sustainability, green design, public relations, risk management, ethical operation and information security aspect according to the authority.C. Nomination Committee(Set in 2021) enables a stronger director election mechanism, and builds a board with better professionally trained members from various backgrounds. The committee is responsible for setting the criteria for qualified directors and executive officers. These criteria provide the basis for searching and nominating candidates, establishing and developing the organizational structure for the board and its committees, and devising and regularly reviewing continuing training plans for directors and director and executive officer succession plans.

The performance evaluation results of Board of Directors and Functional Committees of the Company for the year 2025 are used as a reference when electing or nominating members of the board of directors, and base its determination of an individual director’s remuneration on the evaluation results of his or her performance. The Company reported the evaluation results in the first quarter Compensation Committee (Feb.06, 2026), Nomination Committee (Feb.06, 2026)and board meeting (Feb.25, 2026), the results will be a reference for enhancing the professional competence of the Board of Directors and had been announced on the company website for investors’ reference. | |
| (4) Does the Company regularly evaluate its external auditors’ independence? | V | | (4) The Audit Committee of the company evaluates the independence and competency of the Certified Public Accountants (CPA) every year. In addition to requiring the CPA to provide “declarations of impartiality and independence”, the evaluation is conducted based on the independence assessment criteria specified in Note 1 and the Audit Quality Indicators (AQI) in Note 2. The company has confirmed that apart from the certification and finance and tax related handling charges between the CPA and the company, there exist no financial interest or business relationship between any of the CPA and the company, and none of the CPA’s family members is in violation of the independence requirement. The company also considers the AQI, make sure that the CPA and the CPA firm have sufficient audit experience and training hours, and they have been continuously adopting digital audit tools over the past three years to enhance audit quality. The recent year’s evaluation result of the CPA’s independence was approved by the board of directors on February 25, 2026. | |
| 4. Does the TWSE/TPEx listed company have in place an adequate number of qualified corporate governance officers and appoint a corporate governance supervisor to be responsible for corporate governance practices (including but not limited to providing information necessary for directors and supervisors to perform their duties, aiding directors and supervisors in complying with the laws,organizing board meetings and annual general meetings as required by law, and compiling minutes of board meetings and annual general meetings)? | V | | Through a company resolution passed by the board of directors meeting on February 26, 2019, the company appoints Jean Hong, vice president of the Finance Department and Board Secretariat, as the corporate governance officer responsible for protecting the shareholders’ rights and making the board function more effectively. Ms. Jean Hong has a minimum of ten-year experience in conducting financial operations and business meetings in a management capacity in listed companies.

The main duties are the following:
1. Formulating company policies and an appropriate organizational structure to facilitate independence of the board of directors, transparency of the company, and effective implementation of compliance, internal audit and internal control.
2. Reporting to the board of directors, directors, and the functional committees on the status of corporate governance practices in the company, and checking if shareholders meetings and board meetings are called in compliance with the applicable regulations and corporate governance principles.
3. Inviting suggestions from directors prior to a board meeting to facilitate preparation of the meeting agenda; and giving a minimum of 7-day notice to all directors to attend a meeting and providing sufficient materials for the directors to familiarize themselves with the items. Giving prior notice to the individuals involved in the presence of items that involve stakeholder interest and require recusal.
4. Registering the date of shareholders meeting and preparing and filing with the authority the shareholders meeting notice, agenda, and minutes by the statutory deadline every year; and completing the procedures after an amendment of the Articles of Incorporation or an election of directors.
5. Release of important information regarding important resolutions after the board of directors and shareholders’ meetings, ensuring that the content is legal and correct, and ensuring the equality of investor transaction information. | In compliance with the Best Practice Principles |

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Shareholders: In addition to annual general meetings, the company holds quarterly earnings conference and discloses relevant information in the “Investors and Shareholders” section of the company website. Furthermore, shareholders can share their comments via email: [email protected], where a dedicated contact window will response to these requests.
Employees:
(1) In terms of organization, an employee relations unit and HR representatives have been assigned the responsibility of improving employer-employee communication and interaction to make the communication mechanism be improved and perfected.
(2) In terms of execution, company-wide employee communication meetings and new hire communication meetings are regularly held by top executives. Two-way communication meetings with employees are also organized by each unit to boost employee loyalty and identification with the Company. In addition to internally published e-mails, websites and employee hot-lines, the Company also manages social networking platforms for conveying information on company activities and collecting employee feedback. These ensure open channels of communication are maintained between the Company and employees.
Customers: In addition to day-to-day communication channels and regular meetings, the company utilizes the RBA-Online platform to disclose RBA self-assessment results from the factories to customers.
Suppliers: In terms of supplier engagement, in addition to routine communication channels and regular meetings, LITEON also organizes supplier conferences, exchange activities, and training programs as needed each year. These efforts aim to strengthen two-way communication with our supply chain partners, advance LITEON’s sustainable supply chain strategies and objectives and enhance suppliers’ awareness of sustainability and carbon reduction practices. Through continuous collaboration, we work together to reinforce the overall resilience and sustainable development of the supply chain.
Furthermore, the company organizes employees and suppliers’ training on topics such as corporate social responsibility, the RBA code, and greenhouse gas emission as needed.

The company has created the LITEON Sustainability and Investors section on the company website to provide information for stakeholders. It also offers an email address, Corporate Sustainability Committee & ESG Office: [email protected], for comments.

In 2025, the company has continued to use diversified communication channels to improve results and stimulate different social values with nine types of stakeholders. The Company conducts its material topic identification process on a three-year cycle. The most recent assessment was carried out in 2023, and the next assessment is scheduled to be reinitiated in 2026. The analysis of the assessment results will be reported to the Corporate Sustainability Development Committee under the Board of Directors. | In compliance with the Best Practice Principles |
| 6. Has the Company appointed a professional registrar for its Shareholders’ Meetings? | V | | The company has appointed Yuanta Securities Co., Ltd. as registrar for our Shareholders’ Meetings. | In compliance with the Best Practice Principles |

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Note1: Items for assessment of the CPA's independence are show below.

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2025 Annual Report

2.3.4 Functional Committees

Audit committee can be found in Chapter 3. Corporate Government Report under 3.4.2 The Operation of the Audit Committee.

2.3.4.1 Compensation Committee

The Compensation Committee was established in 2009 to strengthen corporate governance and align the company with international practices. The Compensation Committee deliberates the company's compensation policies. It was the first Compensation Committee in Taiwan to be granted powers second only to those of the board of directors among publicly-listed companies at that time, something which soon became the norm for all local companies.

Duties of the Compensation Committee extend beyond employees' incentives and bonuses, to cover performance appraisals and remuneration of directors and executive managers as well. It is regulated by the Remuneration Committee and LITEON's "Regulation of Performance appraisal for Board of Directors and Functional Committee", and regularly invites third-party professional consulting companies to conduct remuneration reviews, understand the level and trends of market competitiveness, formulate salary policies, and employee incentives and compensation plans. LITEON's Compensation Committee consists of four members; all of whom are chosen from independent directors to ensure objectivity, professionalism and fairness of the committee, while avoiding any conflicts of interest those members may have with the company.

The Compensation Committee reviews the company's remuneration policies and plans on a regular basis to ensure that they are sufficient to attract, motivate and retain talent. The committee reviews the performance and remuneration of directors, and managers, and evaluates employee bonuses on a yearly basis. To ensure that its compensation packages are reasonable and competitive as a whole, the company regularly invites professional consultants to conduct overall comparison and analysis of the company's compensation packages and market rates. The results are duly submitted to the Compensation Committee.

Remuneration of directors, LITEON's highest level of the governing body, is distributed according to the duties and the independence of the directors and the duties associated with serving concurrently as the committee chairman. The members of this committee shall not participate in the discussion and voting on their own individual remuneration decisions. Furthermore, the total amount paid to the directors is linked to business performance by a percentage, and there is a limit on the amount of money. The amount will be reviewed by the Compensation Committee, and may not be implemented without the board's approval.

According to LITEON'S "Compensation Committee Organizational Rules", the Compensation Committee convenes at least twice every year. A total of four Compensation Committee meetings were held in 2025.

2.3.4.1.1 Compensation Committee Members' Professional Qualifications and Independent Analysis

As of February 28, 2026

| Identity | Qualification (Note1)
Name | Relevant working years | Working experience and professional designations | Eligibility of independent status | Number of Other Public Companies in Which the Individual is Concurrently Serving as a Compensation Committee Member(Note2) |
| --- | --- | --- | --- | --- | --- |
| Independent Director (Chairperson) | MK Lu | All have more than 20 years of work experience in business, legal, financial, accounting or corporate business. | (1) Professional qualifications, experience and independence, please refer to pages 9-17 of the director's information.
(2) Each member complies with Article 3 of the “Measures for the Establishment of Independent Directors of Public Offering Companies and Matters to be Followed” and Article 14-2 of the “Securities and Exchange Act” two years before their election and during their term of office. | 0 | |
| Independent Director | Albert Hsueh | | | | 2 |
| Independent Director | Mike Yang | | | | 0 |
| Independent Director | Jesse Ding (Note 3) | | | | 2 |
| Independent Director | Harvey Chang (Note 3) | | | | 0 |

Note1: For the relevant working years, professional qualifications and experience and independence of each member, please refer to page 9-17 of the relevant content of the director's information.
Note2: Independent Director Albert Hsueh is member of compensation committee of Walsin Lihwa Corp., and TTY Biopharm Co., Ltd. Independent Director Jesse Ding is member of compensation committee of GLOBAL UNICHIP CORP. (GUC) and DACIN Construction Co., Ltd.
Note3: Mr. Harvey Chang retired from the Compensation Committee upon the expiration of his term on May 20, 2025; Mr. Jesse Ding was appointed as a member effective May 20, 2025.

2.3.4.1.2 Compensation Committee Meeting Status

(1) The Compensation Committee consists of four members.
(2) Tenure of the Compensation Committee: May 20, 2025 to May 19, 2028.

The committee convened four times in 2025(A). Committee member attendance was as follows:

Title	Name	Attendance in person (B)	By proxy	Attendance ratio (%) (B / A)	Remarks
Chairperson	MK Lu	4	0	100%	Renewal of office
Member	Albert Hsueh	4	0	100%	Renewal of office
	Mike Yang	3	1	75%	Renewal of office
	Jesse Ding	1	0	100%	New appointment on May 20, 2025
Chairperson	Harvey Chang	3	0	100%	Term expired on May 20, 2025

Annotations:

There was no recommendation of the Compensation Committee which was not adopted or was modified by the Board of Directors in 2025.
There were no written or otherwise recorded resolutions on which a member of the Compensation Committee had a dissenting opinion or qualified opinion.

2.3.4.1.3 2025 Main Points of Discussion by the Compensation Committee up to February 28, 2026

Date of the meeting	Main Points of Discussion	Resolution	Company reaction base on the opinion of Compensation Committee
8th meeting of 7th committee Feb.21.2025	1. To report the 2024 External Performance Evaluation Report of the Board of Directors and Functional Committees.
2. To report the Company’s human resource planning and compensation strategy.
3. To report the proposal for the distribution of Directors’ and employees’ compensation for the year 2024, to be distributed in 2025.
4. Proposal to amend the Company’s Articles of Incorporation in accordance with Article 14 of the Securities and Exchange Act.	Passed by a unanimous vote	Presented by the chairperson of the Compensation Committee to the board of directors
9th meeting of 7th committee Mar.21.2025	1. To report the proposal for employee compensation for the year 2024.
2. To report the implementation of compensation matters for Directors and employees for the year 2024.	Passed by a unanimous vote	Presented by the chairperson of the Compensation Committee to the board of directors
10th meeting of 7th committee Apr.9.2025	To report the proposal for Directors’ and employees’ compensation for the year 2024.	Passed by a unanimous vote	Presented by the chairperson of the Compensation Committee to the board of directors
1st meeting of 8th committee May.20.2025	Election of the Convener and Chairperson of the 8th-term Compensation Committee.	Passed by a unanimous vote	Presented by the chairperson of the Compensation Committee to the board of directors
2nd meeting of 8th committee Feb.6.2026	1. To report the proposal for amendments to the scope of grassroots employees.
2. To report the adjustments to the principles for the distribution of Directors’ compensation.
3. To report the proposed principles for the distribution of Directors’ and employees’ compensation.
4. To report the proposal for the distribution of Directors’ and employees’ compensation for the year 2025, to be distributed in 2026.	Passed by a unanimous vote	Presented by the chairperson of the Compensation Committee to the board of directors

2.3.4.2 Nomination Committee

The Committee shall call the committee meeting at least twice a year. A total of six Nomination Committee meetings were held in 2025.

1. Information on the operation of the Nomination Committee

(1) Five members of the Nomination Committee (including four independent directors).
(2) Tenure of the Nomination Committee: May 20, 2025 to May 19, 2028. The committee convened 6 meetings (A) in the recent period of time (from January 1st, 2025 to February 28th, 2026) with the attendance of the members specified as below:

Title	Name	Professional qualifications and experience	Attendance in person (B)	By proxy	Attendance ratio (%) (B / A)	Remarks
Chairperson	MK Lu	Headed more than a dozen of mergers and succeeded in turning around many companies. His success in corporate management has earned him the nickname "the Merger King".	6	0	100	Independent Director
Member	Tom Soong	Worked for years as one of the company's key operations officers before becoming the chairman; extensively experienced in talent selection and corporate management	5	1	83
	Albert Hsueh	Trained in financial accounting and corporate governance with extensive experience in corporate governance and management as well as skills in financial statement analysis and application	6	0	100	Independent Director
	Mike Yang	More than 25 years of experience in IT and business management, specializing in simplifying cloud management and deployment, and leading the global layout of 5G and AI	6	0	100	Independent Director
	Jesse Ding	Specializes in financial revitalization and organizational transformation and possesses extensive professional experience.	2	0	100	New Independent Director
	Harvey Chang	Specialized in finance and corporate management with plenty of experience in salary and performance management, corporate development and related investments.	4	0	100	Resigned on May 20, 2025

2. Main Points of Discussion by the Nomination Committee up to February 28, 2026

Date	Main Points of Discussion	Resolutions	Summary of LITEON's opinions on the Nomination Committee
2nd Term, 8th Meeting
February 21, 2025	1. Review of the Company's newly appointed managerial officers.
2. Annual training program for directors for 2025.
3. Discussion on the required number of seats and qualification criteria for candidates of the 13th Board of Directors (including Independent Directors).	1. Approved unanimously by the committee members present and submitted to the Audit Committee and the Board of Directors for resolution.
2. Approved unanimously and submitted to the Board of Directors for reporting.
3. Approved unanimously; recommended that the 13th Board consist of eight seats (including four Independent Directors), and submitted to the Board for resolution.	Reported to the Board of Directors by the Chairperson of the Nomination Committee.

2nd Term, 9th Meeting March 21, 2025	Recommendation to increase the number of seats for the 13th Board of Directors (including Independent Directors) from eight to nine.	Approved and submitted to the Board of Directors for resolution.	Reported to the Board of Directors by the Chairperson of the Nomination Committee.
2nd Term, 10th Meeting March 21, 2025	Recommended list of candidates for the 13th Board of Directors (including Independent Directors).	Approved and submitted to the Board of Directors for resolution.	Reported to the Board of Directors by the Chairperson of the Nomination Committee.
2nd Term, 11th Meeting April 30, 2025	Review of the Company's newly appointed managerial officers.	Approved and submitted to the Board of Directors for resolution.	Reported to the Board of Directors by the Chairperson of the Nomination Committee.
3rd Term, 1st Meeting May 20, 2025	1. Review of candidate qualifications for the 8th Compensation Committee members.
2. Review of candidate qualifications and recommendation of the convener for the 6th Growth Strategy Committee.
3. Review of candidate qualifications and recommendation of the convener for the 4th Corporate Sustainability Committee.	Approved and submitted to the Board of Directors for resolution.	Reported to the Board of Directors by the Chairperson of the Nomination Committee.
3rd Term, 2nd Meeting February 6, 2026	Annual training program for directors for 2026.	Approved and submitted to the Board of Directors for reporting.	Reported to the Board of Directors by the Chairperson of the Nomination Committee.

2.3.4.3 Growth Strategy Committee

In order to enhance and accelerate the growth policies of LITE-ON Technology and LITEON Group, the Growth Strategy Committee was established in 2010. The Committee is authorized by Board of Directors to direct and review the Company's and the Group's overall growth strategies, and to preview the Company's and the Group's important investment projects. It reports its resolutions regularly to the board of directors.

The Committee shall call the committee meeting at least once every six months. A total of two Growth Strategy Committee meetings were held in 2025.

Information on the operation of the Growth Strategy Committee

(1) Five members of the Growth Strategy Committee (including four independent directors).

(2) Tenure of the Growth Strategy Committee: May 20, 2025 to May 19, 2028. The committee convened two times in the recent period of time (from January 1st, 2025 to February 28th, 2026) with the attendance of the members specified as below: (A)

Title	Name	Attendance in person (B)	By proxy	Attendance ratio (%) (B / A)	Remarks
Chairperson	Mike Yang	2	0	100	Independent Director
Member	Tom Soong	1	1	50
	Albert Hsueh	2	0	100	Independent Director
	MK Lu	2	0	100	Independent Director
	Jesse Ding	1	0	100	New Independent Director
	Harvey Chang	1	0	100	Resigned on May 20, 2025

Main Points of Discussion by the Growth Strategy Committee up to February 28, 2026

Date	Main Points of Discussion	Resolutions	LITEON's response to Growth Strategy Committee's opinions
Apr.28, 2025	Discussion on the three-year plan and growth strategy of the Company's Singapore branch for the Southeast Asian market.	The committee members collectively discussed the matter and provided their insights to the management team for reference.	The results were reported by the chairman of the Growth Strategy Committee to the board of directors.
Dec.18, 2025	Discussion on the Company's digitalization and intelligent energy development roadmap, including the establishment of a new company (NewCo) to accelerate the implementation and execution of the new business strategy for Data Center Direct Current Microgrids (DCDC), as well as providing feedback and recommendations.	The committee members engaged in a two-way discussion with the management team on the agenda and provided suggestions and feedback.	The results were reported by the chairman of the Growth Strategy Committee to the board of directors.

2.3.4.4 Corporate Sustainability Committee

To fulfill the vision of LITE-ON Technology Corporation of being "the best partner in opto-electronics, energy conservation and smart technologies" and to support and strengthen the sustainability and corporate social responsibility related corporate governance mechanisms in the Company. In April 2019, LITEON approved the Corporate Sustainability(CS) Committee, which is managed by the Board, as the highest level of governing body for LITEON's sustainable development.

In response to changes in the environment and the concerns of stakeholders, LITEON has developed nine subcommittees based on the company's capacity and incorporated them into daily operations, to achieve a more focused and precise sustainable responsibility criterion. Therefore, LITEON's CS Committee consists of nine sub-committees, each with its own focus area. These sub-committees are Risk Management, Information Security, Ethical Operations, RBA Code of Conduct Enforcement Management, Social Engagement, Sustainable Supply Chain Management, Sustainable Product Design, Environmental Sustainability, and Stakeholder Relations.

The Corporate Sustainability Committee consists of no less than three board members appointed by the board of directors, and more than half are independent directors. They are responsible for setting the annual goals of corporate social responsibility in economic, environmental, and social aspects and regularly supervising the implementation status, leading LITEON sustainable development to improve and achieve various short, medium, and long-term goals, and regularly report implementation plans and results to the board of directors every year. The Committee shall convene at least twice a year following LITEON's "Organizational Rules for the Corporate Sustainability Committee." The Committee held two meetings in 2025.

1. Corporate Sustainability Committee meeting status

(1) The Corporate Sustainability Committee consists of 5 members (including 4 independent directors). The independent directors of the company have industry professional backgrounds and practical experience. Among them, Albert Hsueh is an independent director specializing in corporate governance, and Mike Yang is an independent director have an extensive background in IT and infosec.
(2) The term of the 4th Corporate Sustainability Committee: 2025/05/20 to 2028/05/19, there have been 2 meetings(A) held from 2025/1/1-2026/2/28 and members' attendance status is as follows:

Title	Name	Attend(sit in) in person (B)	Attend by proxy	Attendance rate (%) (B / A)	Remarks
Chairman	Tom Soong	2	0	100	CSO
Independent Director	Mike Yang	0	2	0
	Albert Hsueh	2	0	100
	MK Lu	2	0	100
	Jesse Ding	0	1	0	Appointed on May 20, 2025
	Harvey Chang	1	0	100%	Term expired on May 19, 2025

2. Summary of the Corporate Sustainability Committee meetings for the most recent year (2025 to 2026/2/28)

Date	Meeting Minutes	Resolution	Follow Up
2025.04.09	Work Performance Status and 2025 Goal Planning of Subcommittees • Amendments to LITEON's Risk Management Policies and Procedures • Update on the Identification of Climate-Related Risks and Opportunities (TCFD) • Implementation Status of the Internal Carbon Pricing Mechanism under the Carbon Management Platform	No objection from all the members present.	The chairman of Corporate Sustainability Committee reports implementation plans and results to the board of directors.
2025.11.21	Work Execution Status of Each subcommittees for 2025 and Goal Planning for 2026 • Overview of LITE-ON's Risk Management Enhancement Plan • Implementation Status of the Internal Carbon Pricing under the Carbon Management Platform	No objection from all the members present.	The chairman of Corporate Sustainability Committee reports implementation plans and results to the board of directors.

2.3.5 The State of the Company's Promotion of Sustainable Development

2.3.5.1 The State of the Company's Promotion of Sustainable Development, Any Variance from the Sustainable Development Best Practice

Principles for TWSE/TPEx Listed Companies, and the Reason for Any Such Variance

Promotion Item	Implementation Status			Non-implementation and Its Reason(s)
	Yes	No	Summary
1. Has the Company established and promoted a sustainable development governance structure and set up a dedicated (or non-dedicated) unit for the promotion of sustainable development, and has the Board of Directors authorized the senior management to handle relevant issues and does the Board supervise the state of affairs with respect to the preceding?	V		In April 2019, LITEON passed a resolution to set up the Corporate Sustainability Committee (CS Committee) directly under the board, as the highest designated unit to guide the sustainable governance of the Company. The CS Committee is chaired by the Chairman, who leads the executive management to drive sustainable strategies, review the effectiveness of sustainable implementation and formulate improvement plans. The Committee meets at least twice a year, and is divided into nine sub-committees, responsible for planning and formulating sustainable strategies and operations covering environmental, social and governance (ESG), and submitting meeting resolutions to the board of directors in accordance with organizational regulations, to strengthen the relationship between corporate governance and sustainability. In addition, the company invites directors to participate in a two-day strategic management meeting every quarter, where important operational teams of the company present reports (including sustainability promotion, business strategies, and risk management). Directors provide suggestions and participate in strategic planning during the meeting, which can enhance senior management's professional knowledge and capabilities in formulating and developing company strategies, risk management controls, and responses.	None
2. Does the company conduct risk assessments of environmental, social and corporate governance issues related to the company's operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?	V		LITEON set up a Corporate Sustainability Committee (CS Committee) under the Board, and Risk Management Subcommittee, a part of functional teams, under CS Committee. Since 2020, LITEON has formulated Risk Management Policy and Procedures, which have been reviewed, approved, and implemented by the Board of Directors. The scope of the Policy covers LITEON and its subsidiaries, with its content defines clear organizational functions with its' liabilities and various risks in accordance with LITEON's overall operation policy to establish risk identification in advance, risk assessment more precisely, risk monitor more effectively and risk control more strictly. In addition, to ensure that comprehensive risk issues can be included in the risk identification process, LITEON's Risk Management Subcommittee divides risks into eight major categories based on economic (including corporate governance), environmental, social, and other aspects, including market risk, operation risk, investment risk, legal and regulatory risk, environmental risk, working hazards risks, human resource risks, and other risks. Since 2021, LITEON introduced enterprise risk management (ERM) to systematically establish the mechanism of risk evaluation whose aim is to prevent possible losses and to continue to adjust with improvements of the best possible risk management practices, according to the changes in the internal and external environment, under certain tolerable risks, and to protect the interests of LITEON's employees, shareholders, partners, and clients and to create more value and achieve optimal resource allocation for the company.	None

Promotion Item	Implementation Status
	Yes	No	Summary
3. Environmental Issues
(1) Has the Company set an Environmental management system designed to industry characteristics?	V		(1) LITEON continues to strengthen the company's sustainable governance functions to create a more sustainable environment. LITEON has established the Corporate Sustainability Committee directly under the board of directors as the highest guidance for LITEON's sustainable governance operations, and set goals and implement it gradually, and organize an Environmental Sustainability Subcommittee under it, with the top manager of the manufacturing department serving as the convener to improve environmental management performance and environmental risk control, to enhance the company's production department's emphasis on the environment, respond to the United Nations Sustainable Development Goals (SDGs), and set goals and gradually promote implementation.

LITEON adheres to the concept of responsible production strategy, takes the development of low-carbon products and sustainable green operation as the environmental sustainable management policy, and introduces ISO 14001, ISO 45001, ISO 50001, and establishes multiple inventory systems including ISO 14064, ISO 14067 and UL 2799 to monitor environmental information, respectively for climate change and energy, operating emission and product carbon footprint, water resources, waste and recycling and product green design and occupational safety management. We also strive to reduce emissions from operation, product design and waste to respond to stakeholders' expectations on environmental issues and enhance LITEON's resilience to sustainable issues. | None |

In terms of goal setting, LITEON has set a SBT (Science Based Target) goal to reduce its carbon intensity by 39.3% compared to 2014 by 2025. In 2024, it developed a carbon reduction pathway based on the 1.5°C scenario of the Paris Agreement and passed the SBTi review, using 2023 as the base year and aiming for an absolute reduction of 58.8% by 2033. At the same time, LITEON set short-term carbon reduction targets for its power module products under Scope 3, aiming to achieve a 63.8% reduction in carbon emissions by 2034, with 2023 as the base year.

During the end-of-life production waste, LITEON conducts in-house treatment of discarded PCBs with qualified permit to maximize resource recovery, reduce environmental impacts, and minimize carbon emissions associated with transportation.

Additionally, LITEON prioritizes the integration of sustainable materials that align with customer goals, with the current target ensuring that more than half of the materials used come from recycled or renewable sources by 2030. The company is also introducing bio-friendly concepts in product design, such as improving LED product designs to reduce the negative impact of lighting on biological behavior and minimize environmental impacts. LITEON aims to enhance product energy efficiency and protect biodiversity while conducting detailed research on the materials used in its products. For instance, it is utilizing PCR plastic in 3C power module products, keyboards, mice, and casings, increasing the proportion of products made from recycled materials. Currently, some products, such as computer keyboards, casings, LED streetlights, and traffic signals, have adopted up to 85% PCR plastic. LITEON is committed to increasing the proportion of PCR materials in its product line, particularly PCR plastic, with a target of raising this proportion to 90% by 2025. | |

Promotion Item	Implementation Status	Non-implementation and Its Reason(s)
(3) Has the company evaluated the potential risk and opportunity induced by climate change and deploy possible solutions to face the problem?	Yes
No	(3) LITEON regards climate change as a material source of both risks and opportunities and is committed to supporting climate-related financial disclosures. In alignment with the TCFD recommendations, the Company discloses climate-related information, including the risks and opportunities arising from climate change, and formulates corresponding response measures to enhance organizational resilience. LITEON also demonstrates its climate commitment by responding to and participating in the international CDP questionnaire, joining the RE100 initiative to advance the transition to renewable energy, and collaborating domestically with other enterprises to establish the Taiwan Climate Partnership. Through these efforts, LITEON is dedicated to continuously reducing greenhouse gas emissions from both its operations and products.

In 2025, the Company invested a total of NT$102.98 million in the procurement of energy-saving and carbon-reduction automation equipment for research and development purposes, generating cumulative cost-reduction benefits of NT$75.90 million.

The Company continues to advance its smart manufacturing strategy, progressing from flexible automation toward intelligent automation. This includes the deployment of AI-based inspection, machine vision, and ergonomic analysis technologies to enhance process precision and factory management efficiency. In parallel, the Company has strengthened IoT-enabled data integration to enable real-time monitoring of equipment conditions, while gradually advancing toward AI-driven data analytics, process optimization, and digital twin applications.

Although these research and development initiatives require capital investment, they have effectively improved product quality, reduced maintenance costs and customer complaints, and strengthened differentiation and market competitiveness through the development of proprietary technologies. |

Promotion Item	Implementation Status					Non-implementation and Its Reason(s)
	Yes	No	Summary
(4) Did the company collect the data of the past two years on GHG emission, water consumption and the weight of waste as well as set up related environmental impact reduction policy?	V		(4) LITEON adopted ISO 14064:2018 reasonable assurance and AA1000AS then entrusted the third-party verification agency to conduct audits on GHG emission, including scope 1 to 3, water consumption and waste generation for managing the environmental impact from the company operation and practicing responsible production. The related information is provided on LITEON Sustainability Report and the website. The greenhouse gas inventory targets include plants with more than 1% of the company's revenue (including 18 global plant sites and Neihu headquarters) to effectively manage and reduce the environmental impact of operational activities and implement responsible production.

• Greenhouse Gas Reduction Policy:
To reduce greenhouse gas emissions, LITEON has developed a carbon reduction pathway based on the 1.5°C scenario which is aligned with the Paris Agreement and has passed the SBTi review. Using 2023 as the base year, the goal is to achieve an absolute reduction of 58.8% by 2033. Each year, verification is conducted in accordance with the ISO 14064-1:2018 standard, and efforts are made to formulate energy-saving measures, energy transformation strategies, and reduce Scope 1 emissions to lower overall emissions. | | | |
| Year | Scope 1 | Scope 2 | Carbon intensity | Scope 3 | | |
| 113 | 6,927.8310 | 102,104.9636 | 0.87 | 5,811,305.1620 | | |
| 114 | 7376.0308 | 130,461.8409 | 0.83 | 167,384,830.8467 | | |
| * The unit for scope 1, 2 and 3 is tonCO_{2}e
The unit for Carbon intensity is tonCO_{2}e/ million NTD revenues
• Water Reduction Policy and Water Usage in the Past Two Years:
LITEON has established water conservation goals, including absolute reduction targets and intensity reduction targets. Most of LITEON's water usage comes from tap water, primarily for domestic use and equipment surrounding the factory. A small amount of cutting water is filtered and recycled to reduce resource consumption and environmental impact. The water conservation goals are to achieve a 6% absolute reduction in water usage by 2026 based on 2023 as the base year, and a 10% reduction in water usage intensity by 2025 based on 2020 as the base year.
The water consumption in 2024 was 2,017,668 m^{3}, which represents an 2.4% decrease compared to the baseline year. The intensity 16.09 m^{3} per million NTD in revenue, a decrease of 12.94% compared to the baseline year. In 2025, the water consumption was 2,176,765 m^{3}*, reflecting a 5.6% increase compared to the baseline year. The intensity was 14.5 m^{3} per million NTD in revenue, which is a 21.5% decrease compared to the baseline year. | | | | | | |

Promotion Item	Implementation Status				Non-implementation and Its Reason(s)
	Yes	No	Summary
Same(4)			• Waste Management Policy and Waste Usage in the Last Two Years: LITEON has established a goal to reduce waste and has implemented the UL 2799 Zero Waste to Landfill standard to enhance the recycling of waste materials. A total of seven production sites have achieved Platinum status, reaching 100% zero waste to landfill. The waste reduction target is to decrease waste per unit of revenue by 6% by 2025, using 2022 as the base year. Additionally, based on 2018 as the base year, the goal is to reduce plastic packaging by 300 metric tons by 2025.
				Hazardous Waste (ton)	Non-Hazardous Waste (ton)
	2024	1,114	3,213
	2025***	1,701***	2,660
	Note : The environmental information for 2025 will be disclosed in LITEON's 2024 Sustainability Report, which will be announced after verification. *With the inclusion of newly constructed facilities, LITEON will prioritize reuse as the primary treatment method for hazardous waste.
4. Social Issues (1) Does the Company set policies and procedures in compliance with regulations and internationally recognized human rights principles?	V		LITEON respects and supports internationally recognized human rights standards and principles, including the "Universal Declaration of Human Rights", the "United Nations Global Compact", and the "Declaration of Fundamental Principles and Rights at Work" of the International Labor Organization, and complies with local laws and regulations. According to the "UN Guiding Principles on Business and Human Rights", LITEON formulates our internal human right policy. In its implementing of human rights management, LITEON adopts the Responsible Business Alliance (RBA) Code of Conduct as the management framework in its operations and on the supply chain, which allows it to identify, prevent, and reduce impact relating to human rights. LITEON has established a process for due diligence, and investigation is carried out at least once every three years. Following the completion of the most recent investigation in 2023, the next investigation is scheduled for 2026. In addition, internal and external audits at our facilities are carried out on a regular basis in accordance with the RBA audit process. Achievements and improvements of various performance indicators, including those of labor, ethics, environment, safety, and health, are reviewed in the annual management review meeting.		None

LITEON launched its “employee stock ownership trust” in September 2021, and has invited employees to become LITEON shareholders; Taiwanese employees can choose to participate according to their personal intention. A fixed amount is allocated from the monthly salary of participants, and the Company will allocate a corresponding reward and deposit it into a special trust account. LITEON increased the reward allocation (with a maximum increase of up to 100%) starting from January 2025. The trust allows employees the opportunity to share the operational results of the Company over the long term, accumulate wealth, and create a mutually beneficial partnership. In accordance with the Company's Articles of Incorporation, if there is profit for a fiscal year, no less than 1% of such profit shall be appropriated as employees' compensation, of which no less than 0.4% shall be distributed to non-managerial employees. In addition, the maximum appropriation for directors' compensation shall be 1.5%. Through institutionalized and diversified incentive and shareholding mechanisms, the Company enhances employee engagement and cohesion, and supports its long-term, stable, and sustainable development.

B. Holidays and Retired
Holidays are better than the Labor Standards Law. In addition to enjoying various leave in accordance with the law, there are also group vacations. We provide employees with 7 days of Enjoy Fun Leave (renamed to Planned Fun Leave effective January 1, 2026) with full pay every year, the overall number of vacation days throughout the year is better than peers. LITEON makes contributions to employees' pension funds according to local regulations, regardless of where it operates in the world. Today, 100% of its employees have joined a pension plan. | |

Promotion Item	Implementation Status
	Yes	No	Summary
Same(3)			D.Safety and Health Management LITEON complies with the ISO 45001 Occupational Health and Safety Management System requirements and, in 2023, the company reviewed and established its commitment policy applicable to all Lite-On employees. The policy was implemented after approval by the highest level of management (the Chairman). At the same time, a dedicated Environmental Health and Safety (EHS) management representative (the highest executive of the Corporate Service Center) was appointed to oversee and manage daily safety and health operations, further solidifying LITEON's firm commitment to safety and health management. Starting in 2025, LITEON expanded its occupational safety and health management system to Southeast Asia (Vietnam and Thailand) and the Americas (the United States and Mexico) and established dedicated occupational safety and health units in each region to comprehensively enhance safety and health management capabilities and improve global OSH effectiveness. The current production sites have obtained ISO 45001 certification, including Taiwan (Neihu, Zhonghe, Longtan plants and Kaohsiung Operations Center), China (Chang'an, Dongguan, Guangzhou, Tianjin, Changzhou, Qingxi, and Shijie), as well as the Thailand and Vietnam plants. E.Education and Training When new personnel join the company, necessary occupational safety and health training is provided. LITEON regularly conducts courses such as electrical safety, hazardous chemical management, and first aid, and organizes fire drills to enhance employees' safety and health awareness. Employees engaged in operations involving special health hazards receive relevant training as required Non-employees must receive hazard communication, safety education, and job safety analysis before entering the plant. During work operations, workers must receive safety supervision and related knowledge transfer to strengthen the safety and health culture. In addition to safety and health training for new recruits and current employees, the Taiwan sites also provided the following training programs in 2025:
Raining / Activity Name	Participants	Training Hours	Total Hours
Lithium Battery Failure Emergency Response Drill	220	1	220
Laboratory Safety and Health Standard Operating Procedures	346	0.5	173
CPR + AED First Aid Training Course	191	2	382
Nutrition Seminar - Healthy Eating for Effective Weight Loss	297	1	297
Nutrition Seminar - Smart & Healthy Ordering for Frequent Diners	142	1	142

The in-house Green product Management System (GMS) works with the Prohibited Substances management and "design development management" procedures already in place as well as the Quality Assurance, Quality Control and LS301 standards for hazardous substance management. LITEON also requires that suppliers (including contractors) comply with the LITEON Guidelines for Green Procurement and submit the Supplier Statement of Restricted Substances Compliance for material/part acknowledgment and internal control. Furthermore, LITEON states explicitly in all procurement contracts the strict requirement for materials, parts, or semi-finished goods to comply with or exceed RoHS, REACH, California Proposition 65, and Montreal Protocol. With the implementation of green supply chain management, we hope to achieve the goal of sourcing environmentally friendly materials, manufacturing and providing to our customers low-toxicity and low-pollution products to minimize any harmful impact they may have on the human body or the environment.

B. To implement the protection of personal data and privacy rights, the company has formulated a "Privacy Policy" and "Personal Data Protection Management Measures" as guidelines for personal data protection. In response to the European Union's General Data Protection Regulation (GDPR) and Taiwan's Personal Data Protection Law and other relevant requirements of the competent authorities in recent years, the company revised the personal data protection security policy and related management measures, while continuing to introduce information technology tools and continuously improve management mechanisms to effectively maintain information security and privacy protection.

C. Customer satisfaction is one of LITEON's core values. All the business units have cross-function teams (CFTs) providing targeted services to individual customers. These teams are responsible for sales, product R&D and manufacturing, quality, delivery, cost, and after-sales service. The CFTs can quickly propose response methods and overall solutions based on problems and feedback reported by customers. Furthermore, all LITEON business units have installed customer and consumer complaint channels to ensure consumer rights are protected. | |

Additionally, LITEON's Supplier Code of Conduct is based on international and domestic regulations, as well as the Responsible Business Alliance (RBA) Code of Conduct (CoC). It requires suppliers to provide a safe working environment, ensure human rights protection, comply with environmental standards, and adhere to business integrity and ethical standards. Suppliers must also comply with the laws and regulations of the countries or regions where they operate and extend these requirements to their sub-tier suppliers. Each year, LITEON conducts supplier sustainability risk self-assessment surveys, on-site audits, responsible mineral due diligence, and disclosures to fulfill corporate social responsibility.

Furthermore, LITEON is committed to working with suppliers to achieve sustainable development. In addition to requiring suppliers to comply with the standards, LITEON provides education and information on sustainability topics such as climate risks, circular economy, and biodiversity to help suppliers enhance their sustainability capabilities. Also, we initiate projects to improve supply chain carbon management capabilities, such as assisting suppliers in their greenhouse gas emissions calculation and product carbon footprints, identifying energy-saving and carbon reduction hotspots, and developing carbon reduction strategies. These efforts demonstrate our spirit of mutual benefit and cooperation, as LITEON aims to create green values together. | |

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LITEON
LITE-ON TECHNOLOGY CORP.
Corporate Governance Report
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B. Corporate Social Responsibility–Related Certifications
(1) The Corporate Social Responsibility Report has passed thirdparty verification in accordance with GRI Standards.
(2) ISO 9001 (2015) Quality Management System Certification.
(3) Science Based Targets initiative (SBTi) approval for nearterm 1.5°C targets and 2050 Net Zero targets.
(4) ISO 14001 Environmental Management System Certification.
(5) ISO 45001 Occupational Health and Safety Management System Certification.
(6) ISO 14064-1 Greenhouse Gas Inventory verified with reasonable assurance.
(7) ISO 50001 Energy Management System Certification.
(8) QC 080000 Hazardous Substance Management System Certification.
(9) RoHS hazardous substance testing laboratory accredited with CNAS national certification.
(10) Product AAA Responsibility Risk Certification.
(11) Information Security Management Systems certified under ISA/IEC 62443 and ISO 27001.
(12) Green Building Label Certification.
(13) The world’s first dual certification for Ocean Plastic (OP) traceability and performance:
selfdeveloped marine waste recycled plastic LGS7505 obtained UL ECVP 2809 traceability verification and UL 746D recycled plastic performance certification (Yellow Card).
(14) The Guangzhou plant and five other major production bases achieved UL 2799 Platinum Level Certification.
(15) RBA VAP (Version 7.1) Responsible Business Alliance Code of Conduct validated audit.
(16) Authorized Economic Operator (AEO) – Certified Secure Operator. | | | | |

2025 Annual Report

Corporate Governance Report

LITEON LITE-ON TECHNOLOGY CORP.

2.3.5.2 Climate-Related Information of TWSE/TPEx Listed Company

Implementation status of climate-related information

Item	Implementation status:
1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.	LITEON actively strengthens its corporate governance mechanisms related to sustainable management and environmental stewardship. The Company has established the Board-level Corporate Sustainability Committee as the highest governing body responsible for advancing sustainability within the organization. The Committee is led by the Chairman, who concurrently serves as Chief Sustainability Officer, and is composed of four independent directors. It is responsible for formulating annual sustainability objectives across economic, environmental, and social dimensions, as well as regularly overseeing performance to ensure continuous improvement and the achievement of LITEON's short-, medium-, and long-term sustainability goals. In accordance with the Corporate Sustainability Committee Charter, the Committee convenes at least twice a year and reports progress and outcomes of sustainability initiatives to the Board on a regular basis, ensuring that the Board maintains comprehensive oversight of the Company's sustainability agenda. Under the Committee's governance structure, LITEON has established the Environmental Sustainability Sub-Committee, Green Design Sub-Committee, and Risk Management Sub-Committee. These sub-committees are responsible for enhancing environmental management performance, advancing low-carbon product development, and strengthening environmental risk control. They also conduct periodic assessments of climate-related risks and opportunities, providing critical inputs that support the Company's strategic planning and management decision-making.
2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).	LITEON evaluates climate-related risks and opportunities in accordance with the frameworks of TCFD and IFRS S2, categorizing them into short-term (within two years), medium-term (two to six years), and long-term (beyond six years) horizons. This structured approach enables the Company to assess how climate impacts may influence its business operations, strategic direction, and financial performance. From a business perspective, rising customer expectations for low-carbon solutions, increasingly stringent regulations on material-related carbon emissions, and growing exposure to production disruptions caused by extreme weather events collectively drive LITEON to strengthen its climate response. These factors accelerate the Company's transition toward low-carbon materials, reinforce manufacturing resilience across its global operations, and enhance the sophistication of its supply-chain management practices. At the same time, the expanding market demand for low-carbon products, increased adoption of renewable energy, and continual technological advancements present substantial long-term opportunities for value creation. Strategically, LITEON is advancing low-carbon product design, broadening the use of renewable energy, and improving the efficiency of energy and water resource management. In parallel, the Company is enhancing the transparency of supply-chain carbon disclosures and promoting localized sourcing to mitigate climate-related risks while unlocking emerging business opportunities. These strategic initiatives ensure that climate considerations are deeply embedded into product development, procurement, and operational planning. From a financial standpoint, climate change presents varying impacts across different time horizons. In the short term, the Company faces increase in energy and material costs, as well as higher compliance expenses associated with evolving regulatory requirements. Over the medium term, LITEON anticipates additional capital investments in renewable energy, energy-saving technologies, and climate-resilient infrastructure to reduce operational interruption risks and safeguard customer demand. In the long term, however, these investments are expected to strengthen the competitiveness of LITEON's low-carbon products and reduce carbon-related costs, reinforcing the Company's market position as global sustainability expectations continue to rise. Overall, by clearly defining climate-related risks and opportunities across different timeframes and integrating them into its business decision-making and financial planning processes, LITEON enhances both its organizational resilience and long-term commercial competitiveness in the face of climate change.

Item

Implementation status:

1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.

LITEON actively strengthens its corporate governance mechanisms related to sustainable management and environmental stewardship. The Company has established the Board-level Corporate Sustainability Committee as the highest governing body responsible for advancing sustainability within the organization. The Committee is led by the Chairman, who concurrently serves as Chief Sustainability Officer, and is composed of four independent directors. It is responsible for formulating annual sustainability objectives across economic, environmental, and social dimensions, as well as regularly overseeing performance to ensure continuous improvement and the achievement of LITEON's short-, medium-, and long-term sustainability goals. In accordance with the Corporate Sustainability Committee Charter, the Committee convenes at least twice a year and reports progress and outcomes of sustainability initiatives to the Board on a regular basis, ensuring that the Board maintains comprehensive oversight of the Company's sustainability agenda. Under the Committee's governance structure, LITEON has established the Environmental Sustainability Sub-Committee, Green Design Sub-Committee, and Risk Management Sub-Committee. These sub-committees are responsible for enhancing environmental management performance, advancing low-carbon product development, and strengthening environmental risk control. They also conduct periodic assessments of climate-related risks and opportunities, providing critical inputs that support the Company's strategic planning and management decision-making.

2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).

LITEON evaluates climate-related risks and opportunities in accordance with the frameworks of TCFD and IFRS S2, categorizing them into short-term (within two years), medium-term (two to six years), and long-term (beyond six years) horizons. This structured approach enables the Company to assess how climate impacts may influence its business operations, strategic direction, and financial performance. From a business perspective, rising customer expectations for low-carbon solutions, increasingly stringent regulations on material-related carbon emissions, and growing exposure to production disruptions caused by extreme weather events collectively drive LITEON to strengthen its climate response. These factors accelerate the Company's transition toward low-carbon materials, reinforce manufacturing resilience across its global operations, and enhance the sophistication of its supply-chain management practices. At the same time, the expanding market demand for low-carbon products, increased adoption of renewable energy, and continual technological advancements present substantial long-term opportunities for value creation. Strategically, LITEON is advancing low-carbon product design, broadening the use of renewable energy, and improving the efficiency of energy and water resource management. In parallel, the Company is enhancing the transparency of supply-chain carbon disclosures and promoting localized sourcing to mitigate climate-related risks while unlocking emerging business opportunities. These strategic initiatives ensure that climate considerations are deeply embedded into product development, procurement, and operational planning. From a financial standpoint, climate change presents varying impacts across different time horizons. In the short term, the Company faces increase in energy and material costs, as well as higher compliance expenses associated with evolving regulatory requirements. Over the medium term, LITEON anticipates additional capital investments in renewable energy, energy-saving technologies, and climate-resilient infrastructure to reduce operational interruption risks and safeguard customer demand. In the long term, however, these investments are expected to strengthen the competitiveness of LITEON's low-carbon products and reduce carbon-related costs, reinforcing the Company's market position as global sustainability expectations continue to rise. Overall, by clearly defining climate-related risks and opportunities across different timeframes and integrating them into its business decision-making and financial planning processes, LITEON enhances both its organizational resilience and long-term commercial competitiveness in the face of climate change.

LITEON LITE-ON TECHNOLOGY CORP.

Item	Implementation status:
3. Describe the financial impact of extreme weather events and transition actions.	LITEON assesses that extreme weather events have a significant impact on both its operations and financial performance. Based on analyses using the Aqueduct tool under the 30-, 50-, and 80-year scenarios, two of LITEON's global operating sites—Tianjin and Thailand—are in high water-risk regions, where the primary challenges include water scarcity and potential production disruptions. Such climate-related events may result in higher costs for cooling and water treatment, decreases in production efficiency, delays in logistics, and increased equipment maintenance expenses, as well as potential adjustments to insurance premiums or the need for additional coverage. To mitigate these impacts, the Company has implemented water-reuse systems, strengthened water-saving and drainage infrastructure, enhanced water-circulation efficiency at these sites, and established emergency response plans to reduce potential operational losses. In terms of transition actions, LITEON is advancing energy transition efforts, expanding renewable energy procurement, implementing energy-saving initiatives, and reducing reliance on fossil fuels. These actions are expected to increase capital expenditures in the short and medium term, including investments in renewable energy, energy-efficient and process-improvement equipment, the adoption of low-carbon materials—which may increase raw-material costs—and R&D spending on low-carbon products. Over the long term, however, these investments will help lower greenhouse gas emissions, reduce exposure to energy price volatility, decrease carbon-related and compliance costs, and generate new market opportunities by aligning with customer expectations for low-carbon products, ultimately enhancing product competitiveness. Overall, extreme weather events primarily increase operational costs and potential losses, while transition actions raise capital and operating expenditures in the short to medium term. Nonetheless, these efforts position the Company to achieve greater financial resilience and long-term growth.
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	LITEON applies its Enterprise Risk Management (ERM) framework to the identification, assessment, and management of climate-related risks in alignment with the TCFD and IFRS S2 frameworks. Under the Corporate Sustainability Committee, the Environmental Sustainability, Green Design, and Risk Management Sub-Committees are responsible for advancing the evaluation and oversight of climate-related risks and opportunities. Each year, business units, corporate functional teams, and manufacturing sites jointly participate in a structured assessment process to identify climate-related risks and opportunities across dimensions such as regulations and policies, technology, compliance, market dynamics, reputation, and acute and chronic physical risks as outlined by TCFD. Once identified, the risks are assessed based on their potential impact and likelihood and are categorized and prioritized using the Company's standardized risk assessment matrix. Material risks are incorporated into the Company-wide risk analysis and are regularly reviewed by the Risk Management Sub-Committee to monitor mitigation measures and track improvement progress. Climate-related risk management outcomes are then reported to the Corporate Sustainability Committee to ensure alignment between climate risk oversight and the Company's overall ERM framework, strategic planning, and operational decision-making. Through this institutionalized process, LITEON is able to monitor changes in climate-related risks in a timely manner and ensure the effectiveness of corresponding management actions.

Item

Implementation status:

3. Describe the financial impact of extreme weather events and transition actions.

LITEON assesses that extreme weather events have a significant impact on both its operations and financial performance. Based on analyses using the Aqueduct tool under the 30-, 50-, and 80-year scenarios, two of LITEON's global operating sites—Tianjin and Thailand—are in high water-risk regions, where the primary challenges include water scarcity and potential production disruptions. Such climate-related events may result in higher costs for cooling and water treatment, decreases in production efficiency, delays in logistics, and increased equipment maintenance expenses, as well as potential adjustments to insurance premiums or the need for additional coverage. To mitigate these impacts, the Company has implemented water-reuse systems, strengthened water-saving and drainage infrastructure, enhanced water-circulation efficiency at these sites, and established emergency response plans to reduce potential operational losses. In terms of transition actions, LITEON is advancing energy transition efforts, expanding renewable energy procurement, implementing energy-saving initiatives, and reducing reliance on fossil fuels. These actions are expected to increase capital expenditures in the short and medium term, including investments in renewable energy, energy-efficient and process-improvement equipment, the adoption of low-carbon materials—which may increase raw-material costs—and R&D spending on low-carbon products. Over the long term, however, these investments will help lower greenhouse gas emissions, reduce exposure to energy price volatility, decrease carbon-related and compliance costs, and generate new market opportunities by aligning with customer expectations for low-carbon products, ultimately enhancing product competitiveness. Overall, extreme weather events primarily increase operational costs and potential losses, while transition actions raise capital and operating expenditures in the short to medium term. Nonetheless, these efforts position the Company to achieve greater financial resilience and long-term growth.

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

LITEON applies its Enterprise Risk Management (ERM) framework to the identification, assessment, and management of climate-related risks in alignment with the TCFD and IFRS S2 frameworks. Under the Corporate Sustainability Committee, the Environmental Sustainability, Green Design, and Risk Management Sub-Committees are responsible for advancing the evaluation and oversight of climate-related risks and opportunities. Each year, business units, corporate functional teams, and manufacturing sites jointly participate in a structured assessment process to identify climate-related risks and opportunities across dimensions such as regulations and policies, technology, compliance, market dynamics, reputation, and acute and chronic physical risks as outlined by TCFD. Once identified, the risks are assessed based on their potential impact and likelihood and are categorized and prioritized using the Company's standardized risk assessment matrix. Material risks are incorporated into the Company-wide risk analysis and are regularly reviewed by the Risk Management Sub-Committee to monitor mitigation measures and track improvement progress. Climate-related risk management outcomes are then reported to the Corporate Sustainability Committee to ensure alignment between climate risk oversight and the Company's overall ERM framework, strategic planning, and operational decision-making. Through this institutionalized process, LITEON is able to monitor changes in climate-related risks in a timely manner and ensure the effectiveness of corresponding management actions.

Item	Implementation status:
5.If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described.	LITEON conducts climate scenario analysis using the RCP2.6 and RCP8.5 pathways together with the corresponding SSP1-2.6 and SSP5-8.5 socioeconomic models to assess operational resilience and strategic implications under different climate futures. Under the low-emissions SSP1-2.6 scenario, rapid energy transition and stronger regulations support growing demand for high-efficiency and low-carbon products. Under the high-emissions SSP5-8.5 scenario, increased exposure to extreme weather and water-related risks intensifies physical impacts on operations. In response, LITEON integrates decarbonization considerations into product and technology development, applying life-cycle thinking and product-level carbon-footprint assessments to identify and address emission hotspots. Key actions include improving the efficiency and reliability of power supplies, LED and optoelectronic products, adopting low-carbon materials such as PCR plastics and metals, and accelerating the deployment of advanced power-conversion technologies like LLC, GaN, and SiC to reduce product-level emissions and enhance competitiveness in ICT, data-center, and EV supply chains. Operationally, LITEON strengthens water-risk assessments, material-substitution strategies, multi-sourcing, and regionalized procurement to mitigate supply disruptions under high-risk scenarios. Sites located in high water-risk regions, such as Tianjin and Thailand, have implemented water-recycling systems, water-saving measures, and emergency-response mechanisms to ensure production continuity. Overall, while the low-emissions scenario entails higher transition costs, it also offers meaningful long-term opportunities driven by low-carbon product demand. Under the high-emissions pathway, LITEON must invest more heavily in resilience measures to address intensified physical risks. These combined strategies enable the Company to maintain operational stability under both scenarios and capture long-term market opportunities in power-supply and LED technologies.
6.If there is a transition plan for managing climate, related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	LITEON develops its transition plan based on identified climaterelated risks and opportunities, advancing energy, product, and process transformation initiatives to reduce environmental impacts and strengthen the Company's resilience to climate risks. The transition plan focuses on decarbonization, improving the energyuse structure, enhancing product energy efficiency, and increasing the efficiency of water and resource utilization. To reduce emissions, LITEON has established shortterm reduction targets and renewableenergy adoption plans, implementing energysaving projects, increasing the share of renewable energy, and progressively reducing the use of fossil fuels in production. On the product side, the Company continues to improve the energy efficiency of power supplies and LED products while pursuing material reduction, the adoption of low-carbon materials, and a higher proportion of highefficiency product sales. Operational initiatives include watersaving measures, improvements in wateruse efficiency, and increased wasterecycling and circularresource utilization. To ensure effective implementation, LITEON tracks annual performance indicators covering greenhouse gas reduction, renewableenergy usage, product energyefficiency improvements, water recycling and conservation, and waste reduction and recycling. These annual metrics allow the Company to monitor progress toward carbonreduction targets and resourceefficiency goals. Through these transition measures, LITEON continues to strengthen its ability to manage both transition and physical risks, while enhancing product competitiveness and overall sustainability performance.

Item

Implementation status:

5.If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described.

LITEON conducts climate scenario analysis using the RCP2.6 and RCP8.5 pathways together with the corresponding SSP1-2.6 and SSP5-8.5 socioeconomic models to assess operational resilience and strategic implications under different climate futures. Under the low-emissions SSP1-2.6 scenario, rapid energy transition and stronger regulations support growing demand for high-efficiency and low-carbon products. Under the high-emissions SSP5-8.5 scenario, increased exposure to extreme weather and water-related risks intensifies physical impacts on operations. In response, LITEON integrates decarbonization considerations into product and technology development, applying life-cycle thinking and product-level carbon-footprint assessments to identify and address emission hotspots. Key actions include improving the efficiency and reliability of power supplies, LED and optoelectronic products, adopting low-carbon materials such as PCR plastics and metals, and accelerating the deployment of advanced power-conversion technologies like LLC, GaN, and SiC to reduce product-level emissions and enhance competitiveness in ICT, data-center, and EV supply chains. Operationally, LITEON strengthens water-risk assessments, material-substitution strategies, multi-sourcing, and regionalized procurement to mitigate supply disruptions under high-risk scenarios. Sites located in high water-risk regions, such as Tianjin and Thailand, have implemented water-recycling systems, water-saving measures, and emergency-response mechanisms to ensure production continuity. Overall, while the low-emissions scenario entails higher transition costs, it also offers meaningful long-term opportunities driven by low-carbon product demand. Under the high-emissions pathway, LITEON must invest more heavily in resilience measures to address intensified physical risks. These combined strategies enable the Company to maintain operational stability under both scenarios and capture long-term market opportunities in power-supply and LED technologies.

6.If there is a transition plan for managing climate, related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.

LITEON develops its transition plan based on identified climaterelated risks and opportunities, advancing energy, product, and process transformation initiatives to reduce environmental impacts and strengthen the Company's resilience to climate risks. The transition plan focuses on decarbonization, improving the energyuse structure, enhancing product energy efficiency, and increasing the efficiency of water and resource utilization. To reduce emissions, LITEON has established shortterm reduction targets and renewableenergy adoption plans, implementing energysaving projects, increasing the share of renewable energy, and progressively reducing the use of fossil fuels in production. On the product side, the Company continues to improve the energy efficiency of power supplies and LED products while pursuing material reduction, the adoption of low-carbon materials, and a higher proportion of highefficiency product sales. Operational initiatives include watersaving measures, improvements in wateruse efficiency, and increased wasterecycling and circularresource utilization. To ensure effective implementation, LITEON tracks annual performance indicators covering greenhouse gas reduction, renewableenergy usage, product energyefficiency improvements, water recycling and conservation, and waste reduction and recycling. These annual metrics allow the Company to monitor progress toward carbonreduction targets and resourceefficiency goals. Through these transition measures, LITEON continues to strengthen its ability to manage both transition and physical risks, while enhancing product competitiveness and overall sustainability performance.

Item	Implementation status:
7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	LITEON adopts internal carbon pricing as a tool to assist in managing transition risks. The pricing is based on investments related to carbon reduction, including the procurement of renewable energy/certificates and investments in reducing greenhouse gas emissions. The carbon pricing policy not only strengthens the company's energy efficiency and carbon reduction measures but also helps LITEON respond to changes in the energy market following the introduction of new carbon reduction and carbon trading regulations, thereby reducing business risks. This policy is one of our long-term strategies to achieve net-zero emissions. Therefore, we may gradually increase the rates. In 2024, LITEON proactively prepared for the global carbon tax/carbon fee, such as the EU's CBAM, the US's CCA, and Taiwan's carbon fee. To enhance the carbon competitiveness of our products, we developed a product carbon management platform ahead of our peers. LITEON's carbon management platform calculates the carbon emissions of products based on the CBAM carbon emission calculation scope and rules, covering the raw material stage and the manufacturing stage (only calculating the electricity consumption in Scope 2). Referring to the EU ETS carbon trading price information, LITEON set the internal carbon price at 100 EUR per ton. The platform has officially been launched since January 2025. Initially, a carbon fee of 5% of the carbon emissions of the raw materials of the actual shipped products has been charged. The internal carbon pricing in 2026 is set at 75 EUR per ton, referencing the average carbon trading price of the EU ETS from January 2025 to October 2025.
8. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified	LITEON established its first science-based emissions reduction target in 2019 and received SBTi approval. The Company successfully achieved this target ahead of schedule in 2023. Building on this progress, LITEON subsequently submitted an updated decarbonization pathway to the SBTi in 2024 to align with the 1.5°C trajectory under the Paris Agreement and the 2050 net zero pathway, and the updated targets were approved. Under the 1.5°C science-based target, LITEON has set 2023 as the base year for Scope 1 and Scope 2 emissions and committed to an absolute reduction of 58.8% by 2033. The emissions covered under LITEON's reduction pathway include Scope 1 and Scope 2 emissions from its major operational sites and corporate headquarters. In 2025, LITEON's renewable-energy consumption reached approximately 1.2 billion kWh, consisting of 60,000 Energy Attribute Certificates (EACs) and around 68 million kWh from on-site generation and bundled renewable-energy procurement. Through these efforts, the Company met its 2025 target of achieving a 38% renewable-energy share. Environmental data for 2025 will be disclosed in LITEON's Sustainability Report and verified by an independent third party.
9. Greenhouse gas inventory and assurance status (filled out separately below in 1-1).	As illustrated in the table below

1-1 Greenhouse Gas Inventory and Assurance Status in Recent Two-year

1-1-1 Greenhouse Gas Inventory Information

The parent company entity and certain subsidiaries have completed the GHG inventory and verification.
Subsidiaries included in the consolidated financial statements began the GHG inventory in 2024 and will commence verification in 2025.

A greenhouse gas inventory mechanism is established in accordance with the ISO 14064-1 greenhouse gas inventory standard published by the International Organization for Standardization (ISO). The greenhouse gas emissions of the parent company entity and the subsidiaries included in the consolidated financial report are regularly inventoried every year to fully grasp the usage and emission status of greenhouse gases and verify the effectiveness of reduction actions.

Additionally, the greenhouse gas inventory data for the past two years is summarized based on the operational control method, including the greenhouse gas emissions of the parent company and all subsidiaries included in the consolidated financial report, as follows:

	2024			2025
		Emissions Location-Based (tonCO₂e)	Emissions Market-Based (tonCO₂e)	Carbon Intensity (tonCO₂e/ Million revenue)	Emissions Location-Based (tonCO₂e)	Emissions Market-Based (tonCO₂e)	Carbon Intensity (tonCO₂e/ Million revenue)
Parent Company	Scope 1	343.5437	343.5437		60.1122	60.1122
	Scope 2	22,133.9724	22,133.9724		30,800.7542	30,787.4821
	Sum	22,477.5161	22,477.5161		30,860.8664	30,847.5943
Subsidiaries	Scope 1	6,659.2001	6,659.2001		7,594.3019	7,594.3019
	Scope 2	146,419.5200	86,860.9176		190,319.1272	96,940.0741
	Sum	153,078.7201	93,520.1177		197,913.4291	90,646.1581
Total		175,556.2362	115,997.6338	0.87	228,774.2955	121,493.7524	0.83

*The verified environmental data for 2025 will be disclosed on LITEON's sustainability report.

1-1-2 Greenhouse Gas Assurance Information

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

The parent company entity has completed assurance.
Subsidiaries included in the consolidated financial report will start assurance from 2026.

In the disclosure of total greenhouse gas emissions under 1-1-1, the assurance scope for 2024 and 2025 for the parent company entity accounts for 100% of the total emissions of the parent company entity for each respective year (location-based). The assurance scope for 2023 and 2024 for the subsidiaries included in the consolidated financial report, including LITE-ON Technology Corporation, LITE-ON TECHNOLOGY (CHANGZHOU) CO., LTD., LITE-ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD., LITE-ON ELECTRONICS (TIANJIN) CO., LTD., LITE-ON NETWORK COMMUNICATION (DONGGUAN) LIMITED, HUIZHOU LI SHIN ELECTRONIC CO., LTD., LITE-ON ELECTRONICS (DONGGUAN) CO., LTD., LITE-ON POWER TECHNOLOGY (DONGGUAN) CO., LTD., SILITEK ELEC. (DONGGUAN) CO., LTD., LTD., LITE-ON ELECTRONICS (GUANGZHOU) LIMITED, Lite-On (Guangzhou) Automotive Electronics Limited, LITEON AUTOMOTIVE ELECTRONICS (GUANGZHOU) CO., LTD., Lite-On Electronics (Thailand) Co., Ltd., LITE-ON AUTOMOTIVE ELECTRONICS MEXICO, S.A. DE C.V., LITE-ON VIETNAM CO., LTD., accounts for 97% and 96% of the total emissions of the subsidiaries included in the consolidated financial report for each respective year (location-based). The assurance was conducted by Taiwan Inspection Technology Corporation in accordance with the assurance standards ISO 14064-3:2019 published by the International Organization for Standardization (ISO), with a reasonable assurance opinion without reservations.

*The verified environmental data for 2025 will be disclosed on LITEON's sustainability report.

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

Outline the baseline year and data for greenhouse gas reduction, reduction targets, strategies, specific action plans, and the status of achieving the reduction targets.

LITEON has achieved the SBT target of reducing carbon intensity by 39.3% compared to 2014. Additionally, in 2024, LITEON established a carbon reduction path based on the Paris Agreement's 1.5°C scenario, and the target was validated by the SBTi. LITEON aims for an absolute carbon reduction of 58.8% by 2033 compared to 2023. At the same time, LITEON set a short-term carbon reduction target for power module products under Scope 3, aiming to reduce carbon emissions by 63.8% by 2034, using 2023 as the base year.

To achieve this goal, we will continue to focus on increasing the use of renewable energy and reducing energy consumption, with the secondary goal of reducing Scope 1 emissions. For Scope 3 reductions, we will promote energy efficiency improvements and energy transitions, strengthen sustainable management of the supply chain, and enhance the energy conversion efficiency of products to achieve LITEON's short-term and long-term carbon reduction targets.

2.3.6 The State of the Company's Performance in the Area of Ethical Corporate Management, Any Variance from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and the Reason for Any Such Variance

Assessment Item	Implementation Status
	Yes	No	Explanation
1. Establishment of ethical corporate management policies and programs
(1) Does the company have a clear ethical corporate management policy approved by its Board of Directors, and bylaws and publicly available documents addressing its corporate conduct and ethics policy and measures, and commitment regarding implementation of such policy from the Board of Directors and the top management team?
(2) Whether the company has established an assessment mechanism for the risk of unethical conduct; regularly analyzes and evaluates within a business context, the business activities with a higher risk of unethical conduct; has formulated a program to prevent unethical conduct with a scope no less than the activities prescribed in paragraph 2, Article 7 of the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies?
(3) Does the company clearly set out the operating procedures, behavior guidelines, punishment and appeal system for violations in the plan to prevent unethical conduct, implement it, and regularly review and revise the plan?	V		(1) LITEON has stated in the LITEON Ethical Corporate Management Best Practice Principles approved by the board of directors (the "Ethics Code") that it abides by the operational philosophy of honesty, transparency and responsibility, bases policies on the principle of good faith and establishes good corporate governance and risk management mechanisms so to create a business environment for sustainable development. LITEON has also stated in the same document the commitment of the board of directors and the management team to thorough implementation of the above policies and to carrying out the policies in internal management and in business activities.
(2) The Company set up the Corporate Sustainability Committee under the board of directors, and set up the "Ethical Operation Subcommittee" under the following. The Subcommittee regularly holds annual review meetings each year. Each team reports on the implementation plan and the improvement results thereof as well as analyzes and assesses the business activities at risk from unethical conduct. Preventive measures are separately established in accordance with the subparagraphs under Article 7, Paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and other operating activities that are within the scope of operations that entail rather higher risk from unethical conduct.
(3) LITEON has detailed ethical management practices and measures to prevent unethical behaviors in the Ethics Code, the Employee Handbook, and Code of Ethics for Practitioners. These practices and measures include operating procedures, code of conduct, education and training, whistleblowing procedures, and grievance and disciplinary procedures as well as their implementation. Meanwhile, regulations are regularly reviewed and amended through the integrity management team operating mechanism.	Compliant with the Ethical Corporate Management Best Practice Principles.

LITEON
LITE-ON TECHNOLOGY CORP.
Corporate Governance Report

The chief audit officer serves as the point of contact for handling whistleblower cases. After consultation with the chairman of the audit committee, the chief audit officer, considering the level of the reported individual, forms an appropriate investigation team to conduct inquiries. If necessary, external experts may be invited to participate in the investigation.

Contact information:
Mailbox: PO Box 156-21, Jiangnan Post Office, Neihu District, Taipei City 114956
Office of Chairman Reporting Mailbox
By email: [email protected]
Telephone: +886-2-8793 6833
The chief audit officer serves as the point of contact for handling whistleblower cases. | Compliant with the Ethical Corporate Management Best Practice Principles. |

Assessment Item	Implementation Status			Non-implementation and its Reason(s)
	Yes	No	Explanation
(3) Does the company adopt proper measures to prevent a complainant from retaliation for his/her filing a complaint?	V		(3) LITEON has established the “Whistleblower Guidelines,” which apply to both the Company and its subsidiaries. This system aims to protect whistleblowers. If a whistleblower believes he has faced adverse consequences due to reporting an incident, he can file an appeal through our designated reporting channels. The chief audit officer provides quarterly reports to the audit committee on the handling status of investigation cases. In 2025, a total of 10 whistleblower reports were received across the Company and its subsidiaries (compared to 5 in 2024). Following investigation, none of these reports were substantiated due to insufficient evidence (compared to 3 substantiated cases in 2024). Separately, 2 cases were substantiated through proactive audits conducted by the internal audit department (compared to 0 substantiated cases in 2024). For the former, the investigation results were communicated to the whistleblowers; for the latter, cases resulted in disciplinary actions based on internal regulations or strengthened colleague education, training, and control activities.
4. Strengthening Information Disclosure Does the company disclose its ethical corporate management policies as well as the results of its implementation on its website and Market Observation Post System (“MOPS”)?	V		Information regarding business activities, organizational structures, and financial standing and performance is disclosed according to the applicable regulations and generally accepted industry conventions. LITEON follows the ethical management principles and discloses the measures it adopts and their performance on the company website and in the annual reports and prospectuses. The ethical management principles are also disclosed on the company website.	Compliant with the Ethical Corporate Management Best Practice Principles.
5. If the company has established the ethical corporate management policies based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy between the policies and their implementation: No deviations.
6. Other important information to facilitate a better understanding of the company's ethical corporate management policies (e.g., review and amend its policies):(1) LITEON builds its ethical management practices on compliance with the Company Act, the Securities and Exchange Act, the Business Entity Accounting Act, and regulations governing TWSE listed companies or other business activities.(2) LITEON has implemented the Material Insider Information Procedures. The procedures require explicitly that directors, managers and employees not disclose material insider information in their knowledge to other people; inquire or collect from persons with material insider information any undisclosed information unrelated to their duties; and not disclose to other people any undisclosed material insider information acquired not through performance of their duties.

2.3.7 Other Important Information Regarding Corporate Governance

2.3.7.1 LITEON Technology Corporation Executive Succession Plan

The selection and training of successors is vital to the sustainable development of an enterprise. The purpose of the executive succession plan is to assure the corporate development link to the changes of operation environment, as well as the availability of the reserve capacity of the leaders and the management to provide human resources for the sustainable development of the organization. In planning the succession program, LITEON requires that the succession team (candidates) not only possess the right personality traits but also embody and demonstrate LITEON's corporate culture, which includes six core values and three key behavioral goals. The six core values are: Leading by Example, Insight, Take Accountability, Excellence in Execution, Open Minded, and Never Give Up. The three key behavioral goals are: Enterprise Thinking, Selfless Teamwork, and Winning Mentality. High-quality employees are continuously rotated through different businesses, regions, and functional organizations to test their openness, learning ability, empathy, and outstanding performance. This comprehensive approach ensures that talent succession covers all aspects of business management.

I. Executive development plan:

The Company conducts targeted, systematic, and organized training and development for the top executives of business and functional units to strengthen their performance in the four key dimensions of Cultural Shaping, Leadership Development, Transformational Growth, Strategic Planning. Through diverse learning approaches—including insights from successful external entrepreneurs, strategic leadership programs, and globally recognized executive education courses—the Company enhances senior executives' strategic perspectives and critical leadership capabilities. Building on this foundation, the Company has responded to the rapid advancement of digital transformation and AI technologies by incorporating AI governance capabilities as a core competency for senior management. This strengthens executives' judgment in data-driven decision-making, AI governance, risk management, and ethical oversight, enabling effective guidance of AI adoption at the strategic level while ensuring alignment with corporate values, regulatory compliance, and sustainable development principles. Through the continuous strengthening of its executive talent development framework, the Company is cultivating a leadership pipeline with forward-looking vision, robust governance capabilities, and a sustainability-driven mindset, laying a solid foundation for future business challenges and long-term competitiveness.

II. Executive succession plan:

The succession pipeline is expected to demonstrate forward-looking strategic insight, integrated operational decision-making capabilities, and leadership in delegation, empowerment, and organizational talent development. Successors are also required to exercise cross-functional influence and to leverage data and AI to support decision-making, advance digital transformation, and drive process optimization. In addition, the succession pipeline emphasizes the achievement of operating results and the strengthening of competitive advantages. Successors establish annual objectives, three-year strategic plans, and organizational talent development strategies, and engage in regular meetings and exchanges with the Company's top leadership and operating teams. Monthly and quarterly performance reviews are conducted to ensure that strategic direction, AI application initiatives, and execution outcomes remain aligned with the Company's overall development objectives.

The Company designs tailored development plans for succession pipeline candidates based on individual capabilities and role requirements. Through diversified development approaches—including participation in AI transformation initiatives, cross-business integration projects, cross-functional rotations, and overseas assignments—the Company accelerates the development of critical leadership capabilities. High-potential successors for key positions are identified by the top leadership team, while external senior executives are also recruited to enhance leadership bench strength and foster the exchange of diverse perspectives. To broaden managerial scope, strengthen international exposure, and prepare successors for expanded responsibilities, key positions across headquarters functions, business operations, and overseas sites have been designated for structured role rotations. This approach cultivates well-rounded business leadership, enhances succession competitiveness at all levels, and supports the achievement of organizational objectives and sustainable operations amid an evolving and competitive environment.

To implement its management succession plan, the Company's Board of Directors unanimously approved the appointment of Mr. Ming-Feng Sung as Chairman and Mr. Sen-Bin Chiu as President on July 30, 2020, leading the Company toward its vision of becoming a world-class enterprise.

2.3.7.2 Other Important Information

In response to new or amended regulations promulgated by the securities governing authority and taking into consideration of the company's actual business needs, LITEON has completed establishment or amendment of the "Corporate Governance Best Practice Principles", the "Code of Conduct", the "Ethical corporate management best practice principles", the "Corporate Social Responsibility Best Practice Principles", the "Procedures for the Acquisition and Disposal of Assets", the "Risk Management Policy and Procedures", the "Regulation and Procedure for Board of Directors Meetings", the "Rules Governing the Election of Directors", the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees", the "Operating Specifications related to Mutual Financial and Business activities with Related Parties", the "Audit Committee Organizational Rules", and the "Rules and Procedures of Shareholders' Meeting". These rules and procedures are also disclosed and available for download on the company website.

2.3.8 Internal Control System Execution Status

2.3.8.1 Statement of Internal Control System

LITE-ON Technology Corporation

Statement of Internal Control System

Date: February 25, 2026

Based on the findings of a self-assessment, LITE-ON Technology Corporation (LOT) states the following with regard to its internal control system during the year 2025:

LOT is fully aware that establishing, operating, and maintaining an internal control system are the responsibilities of its Board of Directors and management. LOT has established such a system to provide reasonable assurance in achieving objectives related to the effectiveness and efficiency of operations (including profits, performance, and safeguarding of assets), reliability, timeliness, transparency, and regulatory compliance of reporting and compliance with applicable laws, regulations, and bylaws.
An internal control system has inherent limitations. An effective internal control system, no matter how perfectly designed, can provide only a reasonable assurance in the accomplishment of the three objectives mentioned above. Furthermore, the effectiveness of an internal control system may change along with changes in environment or circumstances. The internal control system of LOT contains self-monitoring mechanisms, and LOT takes corrective actions as soon as a deficiency is identified.
LOT evaluates the design and operating effectiveness of its internal control system based on the criteria provided in the “Regulations Governing the Establishment of Internal Control Systems by Public Companies” (herein referred to as “Regulations”). The internal control system evaluation criteria stated in the Regulations classify internal control into five key elements based on the process of management control: (1). control environment, (2). risk assessment, (3). control activities, (4). information and communications, and (5). monitoring. Each component further contains several items. Please refer to the Regulations for details.
LOT has evaluated the design and operating effectiveness of its internal control system according to the aforesaid criteria.
Based on the findings of the evaluation mentioned in the preceding paragraph, LOT believes that as at December 31, 2025, its internal control system (including its supervision and management of subsidiaries), which encompasses internal controls for the knowledge of the degree of achieving operational effectiveness and efficiency objectives, reliability, timeliness, transparency, and regulatory compliance of reporting and compliance with applicable laws, regulations, and bylaws, was effectively designed and operated and reasonably assured the achievement of the above-stated objectives.
This Statement will form an integral part of LOT’s Annual Report and Prospectus and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171 and 174 of the Securities and Exchange Act.
This Statement has been passed by the LOT Board of Directors’ Meeting on February 25, 2026, with none of the nine attending directors expressing dissenting opinions, and the remainder all affirming the content of this Statement.

LITE-ON Technology Corporation

Tom Soong
Chairman

Anson Chiu
President

2.3.8.2 If CPA was engaged to conduct a special audit of internal control system, provide its audit report: None.

2.3.9 Major Resolutions of Shareholders' Meeting and Board Meetings

2.3.9.1 Major Resolutions of Shareholders' Meeting and Implementation Status

The Company held a regular session of the General Meeting of 2025 on May 20, 2025 at the International Conference Center of Lite-On Technology Building located at No. 392, Rai Guang Road, 1/F, Neihu, Taipei. Major resolutions and the status of execution are shown below :

Item	Major resolutions	status of execution
1	Adoption of 2024 Financial Statements	The resolution had exceeded legal requirement of the voting numbers and been approved in the AGM.
2	Adoption of 2024 Earnings Distribution.	The resolution had exceeded legal requirement of the voting numbers and been approved in the AGM.
(1) 2024Q2 Earnings Distribution:
Ex-rights (ex-dividend) record date Aug. 25, 2024
Dividend distribution date: Sep. 6, 2024 (Cash dividends NT$ 2 per share)
(2) 2024Q4 Earnings Distribution:
Ex-rights (ex-dividend) record date Mar. 26, 2025
Dividend distribution date: Apr. 25, 2025 (Cash dividends NT$ 2.50659575 per share)
3	Discussion of the Amendment to “Articles of Incorporation”	The resolution had exceeded legal requirement of the voting numbers and been approved in the AGM.
The revised version of “Articles of Incorporation” was implemented and announced on the Company website.
4	Discussion of the Amendment to “Procedures for Acquisition and Disposal of Assets”	The resolution had exceeded legal requirement of the voting numbers and been approved in the AGM.
The revised version of “Procedures for Acquisition and Disposal of Assets” was implemented and announced on the Company website.
5	Election of the Board of Directors of the 13th Term.	The resolution had exceeded legal requirement of the voting numbers and been approved in the AGM.
(1) Elected Directors:
Tom Soong, Raymond Soong, Anson Chiu, Harvey Chang, and Karin Huang
(2) Elected Independent Directors:
Albert Hsueh, Mike Yang, MK Lu, and Jesse Ding
These elected directors and independent directors were approved for registration by the Ministry of Economic Affairs on Jul. 02, 2025, and the nomination and election procedures, as well as the election results, were announced on the Company’s website.
6	Discussion of release of directors from non-competition restrictions.	The resolution had exceeded legal requirement of the voting numbers and been approved in the AGM.
The relevant material information was announced following the approval by the Shareholders’ Meeting on May 20, 2025.

2.3.9.2 Major Resolutions of Board Meeting

A summary of the Company's significant resolutions for the year 2025, up to the end of February 2026, is presented as follows.

2025	Major Resolutions
Feb. 26	1. The Company's consolidated financial report of Fiscal Year 2024. 2. The dividend distribution of 2024 4Q. 3. The donation to Lite-On Culture Foundation. 4. The appointment of the financial officer. 5. To release the managerial officer from the non-competition restrictions. 6. The schedule and agenda of year 2025 shareholders' meeting.
Mar. 21	1. To change the quota of directors to be elected and redefine the period for accepting nominations. 2. The schedule and agenda of year 2025 shareholders' meeting(Agenda Added).
Apr. 09	1. The schedule and agenda of year 2025 shareholders' meeting(Agenda Added). 2. To repurchase shares.
Apr. 30	1. A cash capital increase for its 100% directly held subsidiary, LITE-ON VIETNAM CO., LTD. 2. The Company's consolidated financial report of 2025Q1. 3. No interim dividend distribution of 2025 1Q. 4. The cancellation of restricted shares to employee stock awards. 5. The appointment of the Chief Operating Officer.
May 20	1. Tom Soong is elected as chairman unanimously by the Board of Directors. 2. Change of members of Nomination Committee. 3. Change of members of Compensation Committee. 4. Change of members of Corporate Sustainability Committee.
Jul. 30	1. 1.The Company indirectly holds 100% of the shares of its subsidiaries, Lite-On Electronics (Guangzhou) Co., Ltd. and Lite-On Technology (Jiangsu) Co., Ltd., which are applying for cross-border loans to lend funds of CNY 720 million and CNY 670 million, respectively, to the Company. 2. The Company's consolidated financial report of 2025Q2. 3. Interim dividend distribution of 2025 2Q. 4. The cancellation of restricted shares to employee stock awards and shares repurchased as treasury stock.
Aug. 18	The proposed acquisition by the subsidiary, LITE-ON SINGAPORE PTE.LTD., of 100% equity in DAIZU PROPERTY HOLDING PTE. LTD.
Oct. 29	1. A cash capital increase for its 100% directly held subsidiary, LITE-ON VIETNAM CO., LTD. 2. The Company deposits RMB funds with Citibank through its subsidiary, Lite-On Singapore Pte. Ltd., and obtains a financing facility from Citibank. 3. The issuance of the 1st and 2nd unsecured Convertible Bond (CB). 4. The Company's consolidated financial report of 2025Q3. 5. No interim dividend distribution of 2025 3Q.
2026	Major Resolutions
---	---
Jan. 21	1. Proposal for the Company to conduct a public tender offer for the common shares of Arcadyan Technology Corporation. 2. Proposal regarding the change of the Company's spokesperson.
Feb. 25	1. To approve the Company's consolidated financial statements and standalone financial statements for the year 2025. 2. The proposal for the distribution of earnings for the year 2025. 3. The proposal for the Company to donate NT$10,000,000 to the Lite-On Cultural Foundation in 2026. 4. Proposal for the merger between the Company and Philips & Lite-On Digital Solutions Corp. 5. Proposal to convene the 2026 Annual General Shareholders' Meeting.

2.3.10 Major Issues of Record or Written Statements Made by Any Director Dissenting to Important Resolutions Passed by the Board of Directors during 2025 and as of the Date of this Annual Report: None.

Corporate Governance Report
84

2.3.11 Continuing Education/Training

2.3.11.1 Continuing Education/Training of Directors

Title	Name	Date		Organizer	Course name	Hours	Total hours
		Start date	End date
1	Chairman	Tom Soong	Nov.06, 2025	Nov.06, 2025	Taiwan Corporate Governance Association	Sustainable Disclosure and Investment Value from the Investors' Perspective: ESG Disclosure Framework and Risk Monitoring Connecting to Capital Market Confidence	3.0	12.0
			Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0
			Aug.08, 2025	Aug.08, 2025	Taiwan Corporate Governance Association	Insider Trading from the Perspective of Investigators and Prosecutors	3.0
			Apr.30, 2025	Apr.30, 2025	Taiwan Corporate Governance Association	Impact of Trump 2.0 Tariff and Tax Policies	3.0
2	Director	Raymond Soong	Nov.06, 2025	Nov.06, 2025	Taiwan Corporate Governance Association	Sustainable Disclosure and Investment Value from the Investors' Perspective: ESG Disclosure Framework and Risk Monitoring Connecting to Capital Market Confidence	3.0	12.0
			Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0
			Aug.08, 2025	Aug.08, 2025	Taiwan Corporate Governance Association	Insider Trading from the Perspective of Investigators and Prosecutors	3.0
			Apr.30, 2025	Apr.30, 2025	Taiwan Corporate Governance Association	Impact of Trump 2.0 Tariff and Tax Policies	3.0
3	Director	Anson Chiu	Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0	6.0
			Apr.30, 2025	Apr.30, 2025	Taiwan Corporate Governance Association	Impact of Trump 2.0 Tariff and Tax Policies	3.0
4	Director	Harvey Chang	Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0	6.0
			Apr.30, 2025	Apr.30, 2025	Taiwan Corporate Governance Association	Impact of Trump 2.0 Tariff and Tax Policies	3.0
5	Director	Karin Huang	Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0	12.0
			Jul.31, 2025	Jul.31, 2025	Taiwan Stock Exchange	2025 Taiwan Capital Market Summit	3.0
			Jul.09, 2025	Jul.09, 2025	Taiwan Stock Exchange	2025 Cathay Sustainable Finance & Climate Change Summit Forum	6.0

Title	Name	Date		Organizer	Course name	Hours	Total hours
		Start date	End date
6	Independent Director	Albert Hsueh	Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0
			Jul.10, 2025	Jul.10, 2025	Taiwan Securities Association	Global Trends in Sustainable Governance and Strategies for Green Risk Management (including sustainability information)	3.0
			May 16, 2025	May 16, 2025	Taiwan Corporate Governance Association	Value Creation in Digital Transformation: Leveraging Data-Driven Change and AI Industrialization Opportunities	2.0
			May 09, 2025	May 09, 2025	Taiwan Corporate Governance Association	Strategies for Digital Manufacturing Development	3.0
			Apr.30, 2025	Apr.30, 2025	Taiwan Corporate Governance Association	Impact of Trump 2.0 Tariff and Tax Policies	3.0
			Feb.21, 2025	Feb.21, 2025	Taiwan Corporate Governance Association	Stainless Steel Business Strategy Planning and Sustainability Development	2.0
7	Independent Director	Mike Yang	Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0
			Apr.30, 2025	Apr.30, 2025	Taiwan Corporate Governance Association	Impact of Trump 2.0 Tariff and Tax Policies	3.0
8	Independent Director	MK Lu	Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0
			Apr.30, 2025	Apr.30, 2025	Taiwan Corporate Governance Association	Impact of Trump 2.0 Tariff and Tax Policies	3.0
9	Independent Director	Jesse Ding	Oct.29, 2025	Oct.29, 2025	Taiwan Corporate Governance Association	Trends and Risk Management in Data Governance and Artificial Intelligence	3.0
			May 06, 2025	May 06, 2025	Securities & Futures Institute	Taiwan Total Compensation Trends & Talent Sustainability	3.0
			Apr.24, 2025	Apr.24, 2025	Securities & Futures Institute	Practical Operations of the Remuneration Committee	3.0

2.3.11.2 Continuing Education/Training of Management

Job Title	Name	Training Date	Course Title	Training Hours
Vice President / Corporate Governance Officer/ Board Secretariat	Jean Hong	2025/02/24	EDP Successful Entrepreneur Sharing Session	2
		2025/04/30	Impacts of “Trump 2.0” Tariff and Related Tax Policies	3
		2025/05/23	Roles and Responsibilities of Corporate Governance Officers	3
		2025/07/18	Practical Compliance Operations for Corporate Governance Officers	3
		2025/10/29	Trends in Data Governance and Artificial Intelligence Risk Management	3
Principal Accounting Officer	Michelle Hsiao	2025/02/24	EDP Successful Entrepreneur Sharing Session	2
		2025/05/23	Credit Management Seminar: 2025 Global Economic Overview and Tariff Issues	1.5
		2025/08/14	Core Principles of Business Decision-Making in the Age of AI	2
		2025/08/18	“Mastering Lending Insights for Trust Building” – Training on Intercompany Loans and Guarantees	0.5
		2025/09/18	Practical Applications of Corporate Governance Evaluation toward ESG	3
		2025/09/18	Understanding AI and Its Applications in Finance	3
		2025/09/19	Tariff Trade War: Corporate Strategies and Response Measures	3
		2025/09/19	Finance and Security in the Era of AI	3

2.3.12 Intellectual Property Management

1. Intellectual Property Strategy and Objectives

LITEON actively fosters innovation and independent research and development. To align closely with its business goals and focus on the long-term growth of its core businesses, the company continues to strengthen its patent portfolio in key future technologies. This includes not only increasing the number of patent applications in core technical areas, but also proactively pursuing green patents in response to ESG evaluation transmformation trends—demonstrating the company's commitment to environmental sustainability.

2. Intellectual Property Management System

LITEON places great importance on intellectual property (IP) rights and has established robust processes for acquiring, maintaining, and utilizing patents, trademarks, copyrights, and trade secrets. These efforts enhance the company's competitiveness and safeguard the interests of both LITEON and its shareholders.

Patent Management

Through a comprehensive proposal, review, and reward system, LITEON encourages employees to actively transform their R&D achievements into protected intellectual property—such as patent applications, trade secrets, or academic publications. This approach drives innovation and product development while strengthening the company's overall patent portfolio to enhance its technological competitiveness.

Trademark Management

LITEON has clearly defined procedures for trademark application, evaluation, acquisition, and maintenance. The company promotes proper trademark usage to ensure effective control and protection of intangible assets, while continuously reinforcing its brand image. Ongoing trademark monitoring helps prevent unauthorized registrations and supports strategic trademark deployment aligned with business goals. In response to ESG initiatives and green transformation, LITEON is also committed to develop a green trademark strategy, reflecting its dedication to sustainable operations.

Trade Secret Management

LITEON protects and manages confidential information, including trade secrets, through an integrated system combining information security and IP management. Daily operations include classification and tiered control of documents, along with ongoing employee training to raise awareness of confidentiality and reduce the risk of information leakage. These measures ensure the security and integrity of R&D outcomes, further advancing the company's maturity and resilience in IP governance.

To safeguard LITEON's intellectual property, all employees are required to sign employment contracts and related documents upon onboarding. These agreements specify that IP created in the course of employment belongs to LITEON, and employees are obligated to maintain confidentiality and uphold related responsibilities both during and after their tenure.

Additionally, LITEON has implemented internal audit procedures to ensure that all IP-related activities—acquisition, maintenance, and utilization—are conducted in accordance with company policies.

3. Implementation and Achievements

LITEON reported its intellectual property-related matters to the Board of Directors at the 13th meeting of the 114th fiscal year (October 29, 2025).

The company's recent implementation efforts and achievements in intellectual property are as follows:

Patents

As of Q3 2025, LITEON holds over 3,000 multinational patents. The number of patent applications filed in 2025 has increased by more than 60% compared to the same period in 2024. By continuously expanding its global patent portfolio, LITEON has built a strong patent defense system that not only protects its technological innovations but also enhances market competitiveness and safeguards customer interests.

LITEON has also made long-term investments in green technology R&D and patent deployment, covering energy-saving technologies such as low-power consumption power supply circuits, EV charging stations, energy consumption measurement, energy storage, and intelligent lighting. According to statistics from the Taiwan Intellectual Property Office, LITEON has been granted approximately 550 green patents, with steady growth year over year.

Trademarks

LITEON currently owns over 200 active trademarks registered in more than 40 countries, spanning 10 major categories. To strengthen brand recognition and image, trademarks are prominently displayed on products, packaging, and commercial documents such as product catalogs. Registered trademarks are also consistently used in domestic and international business activities and exhibitions.

Through strategic trademark deployment and promotion, LITEON aims to prevent unfair competition, reinforce brand identity, and enhance the visibility of its products and services—ultimately increasing overall business value. For example, the representative trademark "LITEON" has been deployed in areas defined by the Taiwan Intellectual Property Office's nine green trademark categories, including transportation (e.g., electric bicycles) and energy efficiency (e.g., solar panels for power conversion), demonstrating LITEON's commitment to environmental sustainability.

Trade Secrets

To ensure proper protection of its information assets, LITEON has established classification, grading, and labeling standards for confidential data, along with appropriate security measures to prevent theft, tampering, damage, loss, or leakage. Access to confidential information is strictly controlled.

In response to the trend of digitizing paper documents and transmitting data via networks, LITEON follows the ISO 27001:2022 Information Security Management System standard and has implemented an Information Security Policy. Measures include regular system vulnerability scans, third-party cybersecurity assessments, threat detection, security monitoring systems, and the adoption of Microsoft Azure Information Protection (AIP) to prevent data breaches.

Cloud-based tools such as Microsoft Office 365 are also used to encrypt documents and enforce identity verification and access control. Physical security measures apply to both internal employees and external personnel (including customers, consultants, partners, and vendors), all of whom are subject to this policy.

Digitalization of Management Processes

Since 2020, LITEON has gradually introduced automated and cloud-based management systems for intellectual property, including engineering notebooks, patents, and trademarks. This digital transformation has improved operational efficiency and data security while significantly reducing paper usage and resource waste—helping to prevent deforestation and lower carbon emissions. These efforts reflect LITEON's tangible commitment to environmental sustainability and intelligent governance.

4. Primary Uses of Intellectual Property and Its Contribution to Business Operations

LITEON actively leverages and manages its intellectual property assets through various means, including technology licensing, cross-licensing, IP acquisition or sale, and enforcement actions against infringement and counterfeiting. These efforts help protect the company's innovations and maintain fair market practices.

In addition, strategic patent deployment plays a key role in strengthening customer relationships by enhancing trust in LITEON's technological capabilities and deepening collaboration. This approach not only safeguards intellectual assets but also contributes directly to business growth and long-term competitiveness.

5. Intellectual Property Risks and Mitigation Measures

LITEON proactively addresses and manages intellectual property disputes to protect its markets, products, technologies, and customers. Key strategies include strengthening patent portfolios for core technologies and strategically acquiring patents to support future product development.

In handling disputes, LITEON conducts comprehensive analyses from technical, legal, and industry perspectives to formulate effective response strategies. These may involve creating technological barriers for competitors or avoiding infringement of third-party patents to effectively control related risks.

LITEON also conducts multiple training sessions annually to emphasize the importance of intellectual property and to improve employee understanding of IP rights and related risk management mechanisms. These courses cover topics such as optimal timing for patent applications, building technological advantages, managing confidential technical information, and monitoring market and technology trends. The company also provides clear guidelines to help employees respond swiftly and appropriately to potential IP risks, minimizing operational impact.

To further mitigate risks, LITEON identifies IP-related opportunities and threats linked to business operations and implements corresponding countermeasures. These include policy frameworks, employee training, confidentiality management, asset audits, and mechanisms for reporting and rewarding infringement cases. These efforts ensure the effective generation and protection of intellectual property while maintaining robust risk control.

2.4 Information on Attesting CPA Professional Fees

Unit: NT$ thousands

Accounting Firm	Name of CPA	Period Covered by CPA's Audit	Audit Fee	Non-audit Fee	Total	Remarks
Deloitte & Touche	SHIUH-RAN, CHENG CHEN-HSIU, YANG	01/01/2025-06/30/2025	26,685	18,123	44,808	1. Reasons for replacement: To comply with the internal rotation policy of Deloitte & Touche.
2. Non-audit fees were mainly for tax-related consultation and compliance, investment-related consultation, information system related consulting services and others.
	SHIUH-RAN, CHENG CHIEN-WEI CHEN	07/01/2025-12/31/2025

Note 1: When the company changes its accounting firm and the audit fees paid for the fiscal year in which such change took place are lower than those for the previous fiscal year, the amounts of the audit fees before and after the change and the reasons shall be disclosed: Not Applicable.
Note 2: When the audit fees paid for the current fiscal year are lower than those for the previous fiscal year by 10 percent or more, the reduction in the amount of audit fees, reduction percentage, and reasons therefor shall be disclosed: None.

2.5 Information on Replacement of CPAs

A. Information regarding the former CPAs

Date of replacement	July 30, 2025
Reason for replacement and explanation	Due to the internal rotation arrangements of Deloitte & Touche, the CPAs of the Company were changed from SHIUH-RAN, CHENG and CHEN-HSIU, YANG to SHIUH-RAN, CHENG and CHIEN-WEI, CHEN since 2025Q3.
Describe whether the Company terminated or the CPAs terminated or did not accept the engagement	Carties
Circumstances		CPAs	The Company
	Terminated the engagement		Not Applicable	Not Applicable
	No longer accepted (discontinued) the engagement		Not Applicable	Not Applicable
If the CPAs issued an audit report expressing any opinion other than an unqualified opinion during the 2 most recent years, specify the opinion and the reasons	None
Disagreement with the Company?	Yes		Accounting principles or practices
			Disclosure of financial reports
			Audit scope or steps
			Other
	No	V
	Specify details
Other disclosures(Any matters required to be disclosed under sub-items d to g of Article 10.6.A)	None

B. Information Regarding the Successor CPAs

Name of accounting firm	Deloitte & Touche
Names of CPAs	SHIUH-RAN, CHENG and CHIEN-WEI CHEN
Date of engagement	July 30, 2025
Subjects discussed and results of any consultation with the CPAs prior to the engagement, regarding the accounting treatment of or application of accounting principles to any specified transaction, or the type of audit opinion that might be issued on the Company's financial report	None
Successor CPAs’ written opinion regarding the matters of disagreement between the Company and the former CPAs	None

C. The reply letter from the former CPA regarding the Company's disclosures regarding the matters under Article 10.6.A and 10.6.B(c) of the Regulations: None.

2.6 Audit Independence

The Company's Chairman, Chief Executive Officer, Chief Financial Officer, and managers in charge of its finance and accounting operations did not hold any positions in the Company's independent auditing firm or its affiliates during 2025.

2.7 Changes in Shareholding of Directors, Managers and Major Shareholders

The information required to be disclosed has been revealed at the Market Observation Post System website of the Taiwan Stock Exchange. Please refer to the Market Observation Post System (MOPS)/ Basic Information/ Insiders' holding, pledging and transfer of shares(https://mopsov.twse.com.tw).

2.7.1 Shares Trading with Related Parties: None

2.7.2 Shares Pledge with Related Parties: None

As of August 21, 2025

2.8 Relationship among the Top Ten Shareholders

Name	Current Shareholding		Spouse's/minor's Shareholding		Shareholding by Nominee Arrangement		Name and Relationship Between the Company's Top Ten Shareholders, or Spouses or Relatives Within Two Degrees
	Shares	%	Shares	%	Shares	%	Title (or name)	Relationship
Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF	130,042,000	5.61%	0	0%	0	0%	None	None
Yuanta/P-shares Taiwan Dividend Plus ETF	127,008,930	5.48%	0	0%	0	0%	None	None
Ta-Rong Investment Co., Ltd.	85,402,698	3.69%	0	0%	0	0%	Shu-Yan Tsai	Chairman
Ta-Rong Investment Co., Ltd. Chairman: Shu-Yan Tsai	7,454	0%	0	0%	0	0%	Ming-Hsing/ Ta-Sung (Investment Co., Ltd.)	Chairman
Raymond Soong	79,302,560	3.42%	21,166,064	0.91%	0	0%	None	None
Fuh Hwa Taiwan Technology Dividend Highlight ETF	77,362,000	3.34%	0	0%	0	0%	None	None
Labor Pension fund	60,718,716	2.62%	0	0%	0	0%	None	None
Ming-Hsing Investment Co., Ltd.	60,686,330	2.62%	0	0%	0	0%	Shu-Yan Tsai	Chairman
Ming-Hsing Investment Co., Ltd. Chairman: Shu-Yan Tsai	7,454	0%	0	0%	0	0%	Ta-Rong/ Ta-Sung (Investment Co., Ltd.)	Chairman
Ta-Sung Investment Co., Ltd.	47,088,399	2.03%	0	0%	0	0%	Shu-Yan Tsai	Chairman
Ta-Sung Investment Co., Ltd. Representative: Anson Chiu	1,620,587	0.07%	0	0%	0	0%	None	None
Ta-Sung Investment Co., Ltd. Representative: Harvey Chang	100,000	0%	0	0%	0	0%	None	None
Ta-Sung Investment Co., Ltd. Representative: Karin Huang	0	0%	0	0%	0	0%	None	None
Chunghwa Post Co., Ltd.	46,777,799	2.02%	0	0%	0	0%	None	None
Lite-On Technology Corporation (Treasury shares)	40,000,000	1.73%	0	0%	0	0%	Raymond Soong	Director

2.9 Ownership of Shares in Affiliated Enterprises

The shareholding of the same invested company by the Company, the directors, the supervisors, the managers or another business that is controlled by the Company directly or indirectly

As of December 31, 2025; Unit: shares; %

Invested businesses (Note 1)	The Company's investment		Investment of director, supervisor, management, and the business controlled by the Company directly or indirectly		Total Ownership
	Shares	Share-holding ratio %	Shares	Share-holding ratio %	Shares	Share-holding ratio %
Silitech Technology Corporation	11,707,548	11.71	-	-	11,707,548	11.71
DragonJet Corporation	21,968,856	29.62	-	-	21,968,856	29.62
LITE-ON RACK CORPORATION	11,600,000	80.00			11,600,000	80.00
LITE-ON ELECTRONICS H.K. LIMITED	5,367	100.00	-	-	5,367	100.00
Lite-On Electronics (Thailand) Co., Ltd.	7,049,844	100.00	-	-	7,049,844	100.00
LITE-ON SINGAPORE PTE. LTD.	51,776,500	100.00	-	-	51,776,500	100.00
Lite-On Japan Ltd.	12,451,058	100.00	-	-	12,451,058	100.00
LITE-ON TECHNOLOGY USA, INC.	470,239	100.00	-	-	470,239	100.00
Lite-On International Holding Co., Ltd.	188,725,483	100.00	-	-	188,725,483	100.00
LTC GROUP LTD.	15,855	100.00	-	-	15,855	100.00
LITE-ON ELECTRONICS (EUROPE) LIMITED	300,000	100.00	-	-	300,000	100.00
Lite-On Technology (Europe) B.V.	612,771	100.00	-	-	612,771	100.00
Lite-On Overseas Trading Co., Ltd.	5,142,962	100.00	-	-	5,142,962	100.00
LITE-ON VIETNAM CO., LTD.	-(Note 2)	100.00	-	-	-	100.00
LITE-ON MOBILE PTE. LTD.	69,753,338	100.00	-	-	69,753,338	100.00
LITE-ON TECHNOLOGY VIETNAM COMPANY LIMITED	-(Note 2)	100.00	-	-	-	100.00
LITE-ON AUTOMOTIVE ELECTRONICS MEXICO, S.A. DE C.V.	294,825	99.00	2,978	1.00	297,803	100.00
EAGLE ROCK INVESTMENT LTD.	10,000	100.00	-	-	10,000	100.00
LET (HK) LIMITED	62,059,600	100.00	-	-	62,059,600	100.00
HIGH YIELD GROUP CO., LTD.	238,000	100.00	-	-	238,000	100.00

Invested businesses (Note 1)	The Company's investment		Investment of director, supervisor, management, and the business controlled by the Company directly or indirectly		Total Ownership
	Shares	Share-holding ratio %	Shares	Share-holding ratio %	Shares	Share-holding ratio %
Philips & Lite-On Digital Solutions Corporation	35,000,000	100.00	-	-	35,000,000	100.00
Lite-On Automotive International (Cayman) Co., Ltd.	6,303,465	100.00	-	-	6,303,465	100.00
LITE-ON POWER ELECTRONIC INDIA PRIVATE LIMITED	102,374,058	99.00	1,034,082	1.00	103,408,140	100.00
SKYLA CORPORATION	14,870,000	42.05			14,870,000	42.05
LEOTEK ELECTRONICS USA LLC	- (Note 2)	100.00	-	-	-	100.00
LITE-ON MOBILE INDÚSTRIA E COMÉRCIO DE PLÁSTICOS LTDA.	3,240,001	2.96	106,091,231	97.04	109,331,232	100.00
CEDARS DIGITAL PTE. LTD.	13,057,800	100.00	-	-	13,057,800	100.00
LITE-ON GREEN ENERGY (SINGAPORE) PTE. LTD.	3,457,760	100.00	-	-	3,457,760	100.00
Lite-On Green Technologies, Inc.	67,000,000	100.00	-	-	67,000,000	100.00
Lite-On Green Energy (HK) Limited	3,100,000	100.00	-	-	3,100,000	100.00
Cosel Co., Ltd.	8,221,000	19.99			8,221,000	19.99

Note 1: Long-term equity investment of the Company calculated according to the equity method.
Note 2: Not applicable. The firm does not issue shares. Lite-On's investments are measured as a percentage of ownership.

3. Capital Overview

3.1 Capital and Shares

3.1.1 Source of Capital

3.1.1.1 Capitalization

Month/Year	Issued Price (NT$)	Authorized Capital		Paid-in Capital		Remark
		Shares (K)	Amount (NT$ thousands)	Shares (K)	Amount (NT$ thousands)	Sources of Capital	Capital Increased by Assets Other than Cash	Others
05/2025	10	3,500,000	35,000,000	2,341,179	23,411,788	Cancellation of employee restricted stock awards $60,712 thousands	-	05/26/2025 No. 11430064010 issued by the Ministry of Economic Affairs, R.O.C.
09/2025	10	3,500,000	35,000,000	2,316,776	23,167,758	Cancellation of treasury stock $242,190 thousands and employee restricted stock awards $1,840 thousands	-	09/08/2025 No. 11430129720 issued by the Ministry of Economic Affairs, R.O.C.

3.1.1.2 Type of Stock

Unit: shares

Type of Stock	Authorized Share Capital			Remarks
	Issued Shares	Un-issued Shares	Total Shares
Common Stock	2,316,775,763	1,183,224,237	3,500,000,000	Listed Stock

3.1.1.3 Information for Shelf Registration: Not applicable

3.1.2 List of Major Shareholders

As of August 21, 2025

Shareholder's Name	Shareholding
	Shares	Percentage
Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF	130,042,000	5.61%
Yuanta/P-shares Taiwan Dividend Plus ETF	127,008,930	5.48%
Ta-Rong Investment Co., Ltd.	85,402,698	3.69%
Raymond Soong	79,302,560	3.42%
Fuh Hwa Taiwan Technology Dividend Highlight ETF	77,362,000	3.34%
Labor Pension fund	60,718,716	2.62%
Ming-Hsing Investment Co., Ltd.	60,686,330	2.62%
Ta-Sung Investment Co., Ltd.	47,088,399	2.03%
Chunghwa Post Co., Ltd.	46,777,799	2.02%
Lite-On Technology Corporation (Treasury shares)	40,000,000	1.73%

3.1.3 Dividend Policy and Implementation Status

3.1.3.1 Dividend Policy

If there is net profit after tax upon the final settlement of account of each fiscal year, the Company shall first to offset any previous accumulated losses (including unappropriated earnings adjustment if any) and set aside a legal reserve at 10% of the net profits, unless the accumulated legal reserve is equal to the total capital of the Company; then set aside special reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. The remaining net profit, plus the beginning unappropriated earnings (including adjustment of unappropriated earnings if any), shall be distributed into dividends to shareholders according to the distribution plan proposed by the Board of Directors and submitted to the shareholders' meeting for approval.

Where the Company distributes preceding surplus earning, legal reserve and capital reserve in the form of cash, such distribution is authorized to be made after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting; if such distribution is in the form of new shares to be issued, it shall be approved by shareholders meetings according to the regulations.

In consideration of business development plan, investing environment, demand for funds, global competitiveness and the shareholders' interest, the Dividend Policy of the Company is the distribution to shareholders with the appropriation of the amount which shall be no less than 70% of the balance amount after income tax, contribution of legal reserve and contribution or reversal of special earnings reserve as required by laws, under the circumstance that there is no cumulated loss in prior years. The distribution may be executed in cash dividend and/or share dividend, and the cash dividend shall be no less than 90% of the total distributed dividends.

The dividend distribution ratio in the preceding paragraph could be adjusted taking into consideration finance, business and operations, etc.

In case there are no earnings for distribution in a certain year, or the earnings of a certain year are significantly less than the earnings actually distributed by the Company in the previous year, or considering the financial, business or operational factors of the Company, the Company may allocate a portion or all of its reserves for distribution in accordance with relevant laws or regulations or the orders of the authorities in charge.

The Company may distribute the surplus earnings or off-set losses at the close of each quarter in accordance with the Company Act. While distributing surplus earning, the Company shall estimate and reserve the taxes and duties to be paid, the losses to be covered, the legal reserve to be set aside, and the special surplus reserve to be raised or revolved. Where such legal reserve amounts reach to the total paid-in capital, this provision shall not apply. If the Company distribute surplus earning in the form of cash, it shall be approved by a meeting of the board of directors; if such surplus earning is distributed in the form of new shares to be issued, it shall be approved by shareholders meetings according to the regulations.

3.1.3.2 Proposed Distribution of Dividend

On July 30, 2025, the Board of Directors approved the distribution of cash dividend NTD 4,553,551,526 (NTD 2.0 per share) in the second quarter of 2025, and the dividend had been paid on September 11, 2025.

On February 25, 2026, the Board of Directors approved the distribution of cash dividend NTD 6,830,327,289 (NTD 3.0 per share) in the fourth quarter of 2025, and the dividend was proposed to be paid on April 24, 2026.

The total cash dividends for 2025 was NTD 5.0 per share. In the event of repurchase of the Company's shares, transfer, conversion or annulment of treasury stocks, and exercise of employees' stock options, leading to a change in the number of outstanding shares and a consequent change in dividend yield, the chairman has been authorized to duly adjust cash payout rates.

3.1.3.3 If a material change in dividend policy is expected, provide an explanation: None

3.1.4 Effect Upon Business Performance and EPS Resulting of Stock Dividend Distribution Proposed at the Shareholders' Meeting:

The dividend distribution proposal to be submitted to the shareholders' meeting proposes cash dividends only and does not involve stock dividends. In addition, according to the Regulations Governing the Publication of Financial Forecasts of Public Companies, LITE-ON does not have to disclose the financial forecasts for 2026. Therefore, the effect on business performances, earnings per share and shareholder ROI does not apply.

3.1.5 Compensation of Directors and Employees

Percentages or ranges of remuneration of employees and directors under the Articles of Incorporation:

The Company shall allocate the following compensation from the profit of each fiscal year (The "profit" means "profit before income tax and employees' and directors' compensation"), however, the Company shall have reserved a sufficient amount from such profit to offset its accumulated losses (including unappropriated earnings adjustment if any):

Employees' compensation no less than 1% (of which, the portion allocated to non-executive employees shall not be less than 0.4%)
Directors' compensation: no more than 1.5%

The employees' compensation under the preceding paragraph will be distributed by shares or cash. The employees of parents or subsidiaries of the Company meeting certain specific requirements may also be entitled to such compensation. The Board of Directors is authorized with full powers to determine the terms and methods of appropriation and the Directors' compensation may only be distributed by cash.

The Company shall, upon a resolution of the Board of Directors, distribute employees' and director's compensation in the preceding two paragraphs, and report to the shareholders' meeting for such distribution. While the Company distributes surplus earnings at the close of each quarter in accordance with the Article 24 paragraph 5, the Company shall estimate and reserve the employees' compensation and directors' compensation according to the preceding paragraph. If the Company has accumulated losses, the Company shall estimate and reserve the accumulated losses to be made up first before estimating and reserving the employees' compensation and directors' compensation.

Qualification requirement of employees in the preceding second paragraph shall comply with the provisions otherwise prescribed by the competent authority in charge of securities affairs.

The Basis for estimating the amount of remuneration of employees and directors, for calculating the number of shares to be distributed as employee remuneration, and the accounting treatment of the discrepancy, if any, between the actual distributed amount and the estimated amount, for the current period.

(1) Basis for estimating the amount of remuneration of employees and directors in current year Estimates are made at a certain percentage in the range specified in the Articles of Incorporation.
(2) Basis for calculating the number of shares to be distributed as employee remuneration. The calculation is based on the closing price on the preceding business day according to the board of directors. Distributions of employee shares that amount to less than one full share will be made in cash.
(3) Should there be any significant changes to the amounts resolved by the board of directors after the current financial period has ended, this discrepancy shall be adjusted to the expenses of the year in which the estimates are made. If a different amount is resolved, the differences are recognized as a change in accounting estimate and will be adjusted in the following year.

Remuneration approved by the board of directors

(1) The remuneration for employees and directors of the company in 2025 was approved by the board of directors on February 25, 2026. The amount of employee cash remuneration was NT$ 2,047,106,324, and the amount of director remuneration was NT$ 220,283,792. From the total amount of employee cash remuneration mentioned above, an amount of NT$307,100,000 was allocated to non-executive employees. The amount of remuneration of employees and directors approved by the board of directors had no difference from the figures estimated in the 2025 financial statements.
(2) The amount of employee bonus to be paid in stocks out of the current company-level financial report in terms of the sum of net profit after tax and employee bonus: Not applicable.

Distribution of remuneration of employees and directors in previous year

(1) The amount of employee remuneration was NT$ 1,625,299,522 and the director remuneration was NT$ 165,993,118 in 2024.
(2) The amount of remuneration of employees and directors paid had no difference from the figures estimated in the 2024 financial statements.

3.1.6 Buyback of Common Stock:

Tranche of buyback	6th Buyback Program	7th Buyback Program
Purpose of the share buyback	Transfer of shares to its employees	To maintain the company's credit and shareholders' equity
Scheduled buyback period	2021/07/30~2021/09/29	2025/04/10~2025/06/09
Scheduled buyback price range	NT$41.23 to NT$89.55 per share	NT$53.83 to NT$154.79 per share
Type and number of shares bought back	Common shares: 40,000,000 shares	Common shares:24,219,000 shares
Total monetary amount of shares bought back	NT$2,429,494,228	NT$2,295,584,381
Number of shares bought back as a percentage of the approved number of shares to be bought back (%)	100%	18.63%
Number of shares cancelled and/or transferred	0 share	24,219,000 shares
Cumulative number of the company's treasury shares held	40,000,000 shares	40,000,000 shares
Cumulative number of the company's treasury shares as a percentage of the total number of shares issued (%) (Note)	1.73%	1.73%

Note: The share issued is calculated based on the amended number of total shares issued approved by Ministry of Economic Affairs on September 8, 2025.

3.2 Bonds

3.2.1 Corporate Bonds:

Corporate Bond Type	The First Tranche of Unsecured Convertible corporate Bonds in Taiwan
Issue date	The bonds have not been issued yet.
Denomination	NT$100,000 per bond
Issuing and transaction location	N/A
Issue price	The bonds have not been issued yet.
Total price	NT$ 4 billion
Coupon rate	Coupon 0%
Tenor	Five years. Due Date: The bonds have not been issued yet.
Guarantee agency	None
Consignee	CTBC Bank Corporate Trust Dept.
Underwriting institution	Yuanta Securities Co., Ltd.
Certified lawyer	Handsome Attorneys-at-Law / Attorney Chiu Ya-Wen
CPA	Deloitte & Touche SHIUH-RAN, CHENG and CHIEN-WEI, CHEN
Repayment method	Conversion by the bondholder to the Company's ordinary shares according to Article 10 of the Regulations Governing the Issuance and Conversion, or exercise of the sell-back right by the bondholder according to Article 17, or the Company's call back according to Article 18 of the Company Act, or the Company's buyback from the securities company's venue and cancellation. Bond repayment to bondholders in cash at full face value when due.
Outstanding principal	The bonds have not been issued yet.
Terms of redemption or advance repayment	Please refer to the Company's Regulations Governing the Issuance and Conversion of First Tranche of Unsecured Convertible Corporate Bonds in Taiwan
Restrictive clause	None

Name of credit rating agency, rating date, rating of corporate bonds		None
Other rights attached	As of the printing date of this annual report, converted amount of (exchanged or subscribed) ordinary shares, GDRs or other securities	None
	Issuance and conversion (exchange or subscription) method	Please refer to the Company's Regulations Governing the Issuance and Conversion of First Tranche of Unsecured Convertible Corporate Bonds in Taiwan
Issuance and conversion, exchange or subscription method, issuing condition dilution, and impact on existing shareholders' equity		According to the Company's Regulations Governing the Issuance and Conversion of First Tranche of Unsecured Convertible Corporate Bonds in Taiwan. The dilution effect would not have significant impact.
Transfer agent		None
Corporate Bond Type		The Second Tranche of Unsecured Convertible corporate Bonds in Taiwan
---	---	---
Issue date		The bonds have not been issued yet.
Denomination		NT$100,000 per bond
Issuing and transaction location		N/A
Issue price		The bonds have not been issued yet.
Total price		NT$ 8 billion
Coupon rate		Coupon 0%
Tenor		Five years. Due Date: The bonds have not been issued yet.
Guarantee agency		None
Consignee		CTBC Bank Corporate Trust Dept.
Underwriting institution		Yuanta Securities Co., Ltd.
Certified lawyer		Handsome Attorneys-at-Law / Attorney Chiu Ya-Wen
CPA		Deloitte & Touche SHIUH-RAN, CHENG and CHIEN-WEI, CHEN
Repayment method		Conversion by the bondholder to the Company's ordinary shares according to Article 10 of the Regulations Governing the Issuance and Conversion, or exercise of the sell-back right by the bondholder according to Article 17, or the Company's call back according to Article 18 of the Company Act, or the Company's buyback from the securities company's venue and cancellation. Bond repayment to bondholders in cash at full face value when due.
Outstanding principal		The bonds have not been issued yet.
Terms of redemption or advance repayment		Please refer to the Company's Regulations Governing the Issuance and Conversion of Second Tranche of Unsecured Convertible Corporate Bonds in Taiwan
Restrictive clause		None
Name of credit rating agency, rating date, rating of corporate bonds		None
Other rights attached	As of the printing date of this annual report, converted amount of (exchanged or subscribed) ordinary shares, GDRs or other securities	None
	Issuance and conversion (exchange or subscription) method	Please refer to the Company's Regulations Governing the Issuance and Conversion of Second Tranche of Unsecured Convertible Corporate Bonds in Taiwan
Issuance and conversion, exchange or subscription method, issuing condition dilution, and impact on existing shareholders' equity		According to the Company's Regulations Governing the Issuance and Conversion of Second Tranche of Unsecured Convertible Corporate Bonds in Taiwan. The dilution effect would not have significant impact.
Transfer agent		None

3.2.2 Information of the convertible corporate bonds: The bonds have not been issued yet.
3.2.3 Exchangeable Bonds: None
3.2.4 Shelf Registration for Issuing Bonds: None
3.2.5 Corporate Bonds with Warrants: None
3.3 Preferred Shares
3.3.1 Preferred Shares: None
3.3.2 Preferred Shares with Warrants: None
3.4 Global Depository Receipts: None

102

Capital Overview

3.5 Employee Stock Options: None

3.6 New Restricted Employee Shares :

3.6.1 Issuance of New Restricted Employee Shares

Type of new restricted employee shares	2022 Employee Restricted Stock Awards
Effective registration date and total number of shares	July 26, 2022 and 18,700,000 shares
Issue date	November 15, 2022	May 19, 2023
Number of new restricted employee shares issued	12,216,000 shares	6,484,000 shares
Number of new restricted employee shares still available for issuance	0 share
Issue price	None
Ratio of the number of new restricted employee shares issued to the total number of issued shares	0.53%	0.28%
Vesting conditions of the new restricted employee shares	1. If an employee, after having been granted a restricted stock award, who remains on the job on the vesting date, is determined by the Company as having not violated the employment contract, employee handbook, non-competition and non-disclosure agreement of the Company or any other agreement with the Company, and has fulfilled the individual performance goals and the Company's operational goals set by the Company, proportions of the vesting shares to be granted for such employee on the vesting date each year is as follows: i. first anniversary of the grant:30% ii. second anniversary of the grant:30% iii. third anniversary of the grant:40% 2. Employee's year-end performance rating shall be PL3 rating (Note: PL3 represents "Meets Expectations") and above. 3. The Company's operational goals are either one of the follows: i. The consolidated gross margin of the year (e.g., Year 1) prior to the end of the vesting period shall be equal to or higher than the consolidated gross margin of the previous year (e.g., Year 0), and the amount of consolidated operating profit (in Year 1) must increase by minimum 10% compared with that in the previous year (Year 0). ii. The consolidated gross margin and operating margin for the year prior to the end of the vesting period are equal to or higher than 20% and 10%, respectively.

| Restrictions on rights in the new restricted employee shares | 1. Recipient shall have no right to sell, transfer (other than by laws of inheritance), pledge, mortgage, hypothecate, gift or otherwise dispose of the Shares prior to such Shares being fully vested.
2. Unvested Shares shall have the same rights to attend the Company's shareholders' meeting, submit proposals, or speak and vote at the meeting as those attached to other issued shares of the Company's common stock. However, the exercise of such rights shall be performed in accordance with the trust agreement.
3. Unvested Shares shall have the same rights to receive cash, stock dividends and distributions from capital reserve, as well as the same share subscription rights as those attached to other issued shares of the Company's common stock. However, with respect to unvested Shares, the Recipients shall have no right to withdraw the cash and stock dividends received on such Shares; such dividends shall be kept in trust in accordance with the trust agreement.
4. If any Shares vest on a date that falls within a period during which the Company is temporarily prohibited from altering its share register, including but not limited to, for reasons pertaining to Company's issuance of cash or stock dividend, conducting a rights offering, or convening shareholders' meeting pursuant to paragraph 3 of Article 165 of the Companies Act, the release of restrictions on such Shares shall be performed in accordance with the trust agreement and/or the applicable laws and regulations. |
| --- | --- |
| Custody of the new restricted employee shares | 1. For each Award granted under this Plan, the underlying Shares shall be deposited in a trust account immediately after such Award was granted. The Recipient shall have no right to request and shall not request, for any reason and in any way, that the trustee(s) release unvested Shares held in the trust account to such Recipient.
2. During the period that the Shares are deposited in the trust account, the Company and/or the person appointed by the Company shall, on behalf of the Recipients, have full authority to (the list is not exhaustive) negotiate, execute, amend, renew or terminate the trust agreement. The Company and/or such person shall also have full authority to (the list is not exhaustive) provide instructions regarding delivery, use or disposal of the trust property. |
| Treatment of the new restricted shares for which the grantee fails to meet the vesting conditions after receiving or subscribing to the shares | 1. If either (i) the Recipient has ceased their employment as of the Vesting Date, (ii) the Recipient has violated any provisions of the employment contract, work rules, non-competition, non-disclosure and/or any other agreement entered into with the Company/Affiliate, (iii) the individual and/or company-level performance requirements have not been met; or (iv) the Recipient has, in violation of subparagraph 1, paragraph 8 of this Article, demanded modification, revocation, termination, suspension or cancellation of the authorization granted to the Company as related to the trust/custody account, the Company shall have the power to repurchase for no consideration and cancel any Shares that have not vested pursuant to this Article.
2. The Company shall also repurchase for no consideration and cancel any unvested Shares in the event of voluntary or involuntary termination of the Recipient's employment. |
| Number of new restricted employee shares that have been retired or bought back | 8,744,000 shares
4,250,400 shares |
| Number of new restricted shares that have vested | 3,472,000 shares
0 share |
| Number of unvested new restricted shares | 0 share
2,233,600 shares |
| The ratio of the number of unvested new restricted shares to the total number of issued shares (%) | 0.00%
0.10% |
| The effect on shareholders' equity | Dilution of original shareholders' holding is limited |

Capital Overview

3.6.2 List of Executives Receiving New Restricted Employee Shares and the Top Ten Employees with New Restricted Employee Shares
As of February 28, 2026; Unit: shares and NT$

Title	Name	No. of New Restricted Shares (Note 1)	New Restricted Shares as a Percentage of Shares Issued (Note 2)	Released				Unreleased
				No. of Shares	Issued Price (NT$)	Amount (NT$ thousands)	Released Restricted Shares as a Percentage of Shares Issued (Note 2)	No. of Shares	Strike Price (NT$)	Amount (NT$ thousands)	Unreleased Restricted Shares as a Percentage of Shares Issued (Note 2)
Chairman & Chief Sustainability Officer (CSO)	Tom Soong	11,012,000	0.48%	2,096,400	0	0	0.09%	1,457,600	0	0	0.06%
President	Anson Chiu
Senior Vice President	Jerry Hsu
Vice President	John Chang
Vice President	Don Lin (Stepped down on 2025.04.30)
Vice President	Jean Hong
Principal Accounting Officer	Michelle Hsiao
Employee	Richard Chiang
Employee	Reina Hu
Employee	Vicky Liang
Employee	Alan Liu
Employee	Sander Su
Employee	Simon Ong
Employee	Lear Lee
Employee	Daniel SE Wang
Employee	Adam Chen
Employee	Riley Chuang

Note 1: The number of New Restricted Shares including shares that have been recovered.
Note 2: The share issued is calculated based on the amended number of total shares issued approved by Ministry of Economic Affairs on September 08, 2025.

3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions

(1) For mergers, acquisitions, or issuance of new shares for acquiring shares of another company completed in the most recent fiscal year and up to the date of publication of this Annual Report: N/A

(2) For mergers, acquisitions, or issuance of new shares for acquiring shares of another company approved by the Board of Directors in the most recent fiscal year and up to the date of publication of this Annual Report, the execution status and the basic information of the acquired or invested company shall be disclosed. For mergers, acquisitions, or issuance of new shares for acquiring shares of another company still in progress, the execution status and the impact on shareholders' equity shall be disclosed as well:

The Board approved the public tender offer for the ordinary shares of U-MEDIA Communications, Inc. (U-MEDIA) on January 21, 2026.

(1) Purpose of the Tender Offer:

The acquisition of U-MEDIA ordinary shares through this public tender offer is undertaken for strategic investment purposes. LITEON seeks to capitalize on the complementary strengths of both companies, including respective customer bases and product portfolios within the network communications sector. Through this equity investment, the two companies aim to expand their presence in the sector by integrating resources across product developments, manufacturing, and sales.

(2) Price of the Tender Offer:

The consideration for this public tender offer is NT$54 in cash per share.

(3) Expected Tender Offer Period:

From January 23, 2026 to March 12, 2026.

(4) Intended Number of Shares to Be Acquired and Minimum Number of Shares to Be Acquired:

Between 20% and 100% of the total issued shares of the Acquired Company.

Upon completion of the tender offer, LITEON will, subject to applicable laws and the final results, determine whether to integrate U-MEDIA into a wholly owned subsidiary.

Basic Information of the Acquired Company (NT$ in thousands)

Company Name	U-MEDIA Communications, Inc.
Company Address	3F, No.1, Jin-Shan 8th St., Hsinchu 300, Taiwan, R.O.C.
Responsible Person	Yuan, Yun-Chung
Total Assets	1,666,105
Total Liabilities	544,940
Total Shareholders’ Equity	1,121,165
Operating Revenue for the Period	1,579,622
Gross Profit for the Period	274,626
Operating Income for the Period	142,957
Net Income for the Period	85,639
Earnings Per Share (NT$)	2.27

Note: Audited/Reviewed financial reports of U-MEDIA for the third quarter of 2025.

3.8 Financing Plans and Implementation: Not applicable

4. Operational Highlights

4.1 Business Activities

4.1.1 Business Scope

4.1.1.1 Business Activities and Revenue Breakdown

Department	Key Business Activities	Product
Opto-electronics Department	Design, R&D, production, and sales of opto-semiconductor, automotive products and components.	LED opto-semiconductor packaging and LED lighting applications
Auto electronic parts and components
Auto camera modules
EV chargers	17%
Cloud and AIoT Department	Design, R&D, production, and sales of datacenter, server, networking, AI, AIoT, smart devices and smart image solutions products.	Server power systems solutions
Networking modules and components
Smart image devices
IoT devices	45%
Information Technologies Department	Design, R&D, production, and sales of applications for workstations, gaming PCs, PCs, desktops, industrial, LEO (low earth orbit) satellite, and game consoles.	Power supply
Smart input peripheral	38%

4.1.1.2. New products under development

High-end opto-semiconductor products
High efficiency power supply management modules
High-end camera modules and auto camera modules
Off-board EV chargers
Integrated Cloud Server Power Rack Solutions

4.1.2 Industry Overview

1. Industry overview and outlook

Most of the company's products in 2025 can be divided into three categories, opto-electronic products, Cloud & AIoT products, and IT & consumer electronics (ITCE) products. Most opto-electronic products can be separated into opto-semiconductor products and automotive electronics products, while most Cloud and ITCE products are power supply. Hence, the industry overview is described as follows with respect to these product categories.

(1) Opto-electronics – LED Opto-semiconductor

Light-emitting diodes (LEDs) are being used in more and more places over the last few years. New technology such as Mini LED and Micro LED are emerging with this trend. LITEON started manufacturing LEDs in 1975. With the ability of product design integration, the line focuses on the development of high-end, high entry barrier, and high value-added opto-semiconductors products. The products include visible and invisible LED components as well as outdoor lighting modules.

Visible LED products include high performance white light LED, white SMD LED, surface mounted LED (SMD LED), high power visible LED, and LED display. Products can satisfy needs ranging from spot, line, to area lighting. They can also be found in IT products, consumer electronics, auto lighting, UV LED, and other various areas. These products are widely used by leading brands in the market. Some clients have started using Mini LED in recent years. They are used mostly in gaming, smart devices and other high-end customized lighting modules. Regarding high efficiency LED products, buyers of automotive lighting products include tier one EV and traditional car brands in Europe, the Americas, and Japan.

Invisible LED products cover photocouplers, infrared components, and ambient light sensors. Optocouplers are widely used in industrial automation, energy management systems, AI server power and energy storage products, 5G base stations, and electric vehicles. LITEON is the world's leading photocoupler manufacturer by shipment. Infrared sensors are used in biometrics, AR/VR, wearable devices, security monitoring, autonomous mobile robots, and are recognized for excellence by leading brands. Growing demand and LITEON's full range solutions and integration capability continue to push up shipments and revenues.

Upstream - Components/Materials

Upstream supply chain includes semiconductors, plastics, and phosphor powder. For semiconductors, major suppliers include some in Japan and some Taiwanese suppliers that have been selected as strategic partners for excellent quality and steady supply. Meanwhile, plastics and phosphor powder are sourced from a sufficiently large range of suppliers to remove the threat of supply shortage.

Midstream - Packaging service providers

The majority of international packaging service providers are Japanese suppliers. Taiwanese suppliers include LITEON.

Downstream - Products and applications

A growing awareness of energy conservation is leading to an extensive range of downstream applications, including industrial, new energy, AI server power and energy storage products, EV, consumer electronics, and auto lighting.

(2) Opto-electronics – Automotive electronics

LITEON has more than 40 years of experience in developing and manufacturing automotive electronics products. The company leverages its core competencies in lighting and electricity to expand quickly in automotive electronics.

Regarding automotive lighting modules, LITEON continues to work with leading global automotive lighting suppliers and produce various automotive interior and exterior LED lighting modules. Resources have been put into products from interior lighting such as ambient lighting to exterior lighting, including intelligent headlight controller modules, front and rear fog light modules, signal lights, tail lights, and high mounted stop light modules, as well as optical and cooling designs, glare free headlights designs, and EMI/EMC and energy efficiency designs. These products and designs have been implemented in the products of world-famous automakers.

Automotive camera modules and sensor components are widely used in smart car devices. ADAS, driver monitoring systems (DMS), and HUDs can be customized according to clients' requirements to create different products. Software design capabilities, testing standards and equipment are also provided to

improve safety and comfort.

For electric car charging solutions, LITEON relies on years of experience in power products and combines strengths in hardware, software, and firmware to provide customers with total electric car charging solutions. They can be available to commercial, residential or public venues and commercial fleets. All of these products meet European and US safety standards, and have been shipped to European and US electric car makers and charging service providers.

As the demand for automotive electronics rises, LITEON expects to see continuing increase in shipments and revenues in automotive products as the market grows.

Upstream - Components/Materials

Upstream production for LED products includes semiconductors, plastics, phosphor powder and other raw materials. Upstream production for camera modules includes lens suppliers and image sensor, voice coil motor and other optical component suppliers. Upstream production for electric car charging stations includes control IC, diodes, resistors, and EV cables.

Midstream - Automakers and ADAS and charging system suppliers

These suppliers include some of the world's largest automakers that manufactures various car parts and products. Midstream production for electric cars includes electric components/modules, charging systems, power motors/modules, automotive electronics components/modules, smart car electronics systems, battery systems, and power supply units.

Downstream - Products and applications

In addition to traditional automakers, downstream production for the automobile industry includes electric car startups that manufactures large electric passenger vehicles, electric cars, electric motorcycles, and electric bicycles. As European nations and the US start banning sale of fossil fueled cars and adopting zero emission policies, it is expected that most countries in the world will implement bans on the sale of fossil fuel cars between 2025 and 2035. These bans will fuel the growth momentum in the electric car industry. To meet electric cars' charging needs, many countries are introducing incentives to encourage charging station operators to install more charging stations, which in turn drive up the demand of EV chargers market.

(3) Cloud and ITCE products - Power supply (SPS)

Power supply units are used primarily to convert external power supply to a stable current as needed to be used by electronic products. The products are divided into four categories by current conversion method. The categories are AC/DC, DC/DC, AC/AC, and DC/AC. In particular, AC/DC covers SPS and adaptors. DC/DC is mainly used for communication converter. AC/AC is UPS. DC/AC is found in inverters. Of the four, AC/DC is the most common application.

The company merged with Li Shin in 2007. Now more than 30% of the power supply units being manufactured are high-end power management systems used in network communication, servers and other high-end enterprise cloud computing products. In addition to the existing PC market, LITEON continues to explore opportunities in high-end network communication and servers, consumer electronics, industrial, and other non-PC power supply markets.

Regarding cloud computing power applications, in addition to supplying server power supply units for brand name clients, LITEON provides high-end server power management systems for large data center clients. Not only do power management systems products integrate power and battery backup unit, but they also integrate liquid cooling thermal solutions, which provide high value-added services to clients. In addition, LITEON combines the capability of software, firmware, and hardware to create an enhanced product portfolio.

Other power supply applications include smart home, tablets, game consoles and unique power supply systems such as wireless chargers and fast chargers. LITEON works to expand product applications to low Earth orbit satellite power supply, as well as forming a strategic alliance with COSEL, a Japanese enterprise, to collaboratively develop industry grade power systems. LITEON will also explore opportunities in positioning itself as a provider of one-stop power management solutions in the future in order to continue the revenue growth momentum in power supply units.

Upstream - Components/Materials

Upstream raw materials for SPS consist mainly of transformers, capacitors, control IC, switches, diodes, wave filters, resistors, and PCB.

Most key parts have to be imported. Taiwan is one of the major AC/DC SPS manufacturers in the world. There are a large number of suppliers of transformers, resistors, capacitors, wave filters, and PCB in the country. However, given Taiwanese suppliers provide mostly AC/DC SPS for desktop and laptop computers, most suppliers of parts and components have only the capability to manufacture mid- and low-end products. High-end capacitors and transformers have to be imported. Furthermore, Taiwanese semiconductor manufacturers pay less attention to high power electric or electronic modules or power supply control IC and module design. As a result, semiconductor components such as control IC and diodes have to be imported.

The history of SPS development is more than 30 years old and it continues to show steady progress every year. There is a stable global supply of all key components/materials required in production. Apart from the local supply, Taiwanese manufacturers rely on high-end parts and components imported from the U.S. and Japan.

Midstream - SPS suppliers

There are more than a hundred SPS manufacturers in Taiwan. However, most of them produce AC/DC SPS products. Large manufacturer, such as LITEON, has AC/DC and DC/DC in the product lineups.

Downstream - Products and applications

The range of products and applications covers IT, communication, consumer electronics, industry and measurement, and defense and aviation. Being global in nature, these industries make SPS a widely used global product. Given its advanced IT industry, Taiwan plays a key role in the international market, and provides support and the main driver for SPS development in Taiwan.

2. Product Trends

(1) Opto-electronics - LED Opto-semiconductor

LITEON entered the LED industry in 1975 and has since built nearly five decades of expertise, establishing itself as a leading global supplier of both invisible and visible LED products. The Company continues to advance high-end optoelectronic technologies, including high-end optocouplers widely adopted in industrial control, green energy, telecommunications base stations, electric vehicles, etc. The Company develops comprehensive insulation and isolation solutions, such as high-voltage system insulation enhancements, optical relays for energy-storage battery management systems, gate-drive optocouplers for inverter systems, and high-speed signal isolation devices, demonstrating LITEON's strong innovation capabilities in advanced optoelectronic semiconductors.

In parallel, the Company develops high-efficiency multi-chip packages, high-reliability LEDs for lighting, low-thermal-resistance packages, intelligent lighting solutions, IR LEDs for biometric applications, and infrared sensing components for emerging fields such as wearables, security, and robotics.

Owing to growing environmental awareness, improvement of LED chips and packaging technology, and optimization of LED lighting cost, the global LED demand keeps growing. In addition to indoor/outdoor lighting applications such as traffic lights and street lamps, LED is being used in portable consumer electronics and automotive electronics. Furthermore, heavy use of LED in automotive electronics replaces traditional automotive lighting and leads to large increases in applications ranging from interior lighting to exterior lights such as rear light, turn signal light, and headlight.

(2) Opto-electronics - Automotive electronics

The automotive industry is well-established, and following the 2021-2022 global chip shortage, the supply chain for automotive components has steadily recovered. Market research shows that global new-vehicle sales are expected to grow modestly by 2026, with new energy vehicles serving as the primary growth driver and projected to achieve double-digit expansion.

Trends such as connected vehicles and autonomous driving are accelerating vehicle intelligence and electrification, particularly in safety-related technologies including ADAS, DMS, adaptive headlights, and parking assistance. These developments present significant long-term opportunities. The global electric vehicle market continues to expand rapidly.

(3) Cloud and ITCE products - power supply

Switch mode power supply units are gaining popularity with the rise of PC, mobile communication, and the Internet. Its growing popularity is fueling a steady growth in the SPS demand. Consumers have become much

more environmentally conscious in recent years. LITEON has incorporated environmental awareness into its product lines. The company is first to complete new products such as high efficiency energy saving power supply units and smart power supply units.

Regarding power supply for servers and network communication products, the increasing demand for cloud database is leading to a higher demand for high density, high efficiency, and high wattage data center power supply systems and more rigorous requirements. LITEON has introduced battery backup units (BBUs), data center power management systems, and liquid cooling solutions to supplement hardware/software/firmware in order to provide systematic power management for clients. With the launch of the new-generation GPU chips and the proactive deployment of proprietary ASICs by large cloud operators, the demand for servers continues to increase. According to market research, global server shipments are projected to grow 13% in 2026, with AI servers rising by nearly 80% and reaching a penetration rate of approximately 20%.

Product competitors

Product	Company
Opto-electronics – LED opto-semiconductor	Osram, Nichia, Everlight Electronics
Cloud and ITCE products- power supply units	Delta Electronics, AcBel Polytech, Chicony Power

4.1.3 Research and Development

4.1.3.1 Research and development expenses in the past two years

Unit: NT$ thousands

| Items/Year | 2024 | 2025 | 2026
(as of 2026/2/28)
(Note) |
| --- | --- | --- | --- |
| Research and development expenses | 7,476,433 | 8,721,048 | 1,508,337 |
| As a % of total revenue | 5.45% | 5.25% | 5.60% |

(Note) The figures for 2026 are unaudited.

4.1.3.2 R&D Accomplishments in 2025

All business sectors of the LITEON Group are committed to designing products in accordance with its green policies that encompass resource conservation, higher energy efficiency, carbon reduction, reduction of environmental toxicity, and recyclability of materials and resources. With green design incorporated into all stages of the product life cycle, LITEON continues to develop new products and technologies for customers. Technologies and products successfully developed in the past year are described as follows:

Power Conversion

(1) A 2400W 80PLUS Titanium fully digital power supply designed for CDU systems. The front-end employs MOSFET-based active rectification with CCM PFC to reduce conduction loss under high load and improve overall efficiency. The DC/DC stage adopts a full-bridge LLC topology with synchronous rectification on the secondary side to support high-power output. A dual-DSP architecture is implemented across the primary and secondary sides, integrating voltage/current sensing, temperature monitoring, fan control, communication interfaces, and line calibration. Firmware-based digital management enables Active Current Sharing, Hot Swap, PMBus firmware updates, and Blackbox event logging. The design achieves 80PLUS Titanium efficiency at a high power density of 72.3 W/in³.

(2) A 165W high-efficiency, low-standby-power adapter compliant with leading global energy regulations (ErP Lot VII / GB20943). The design shortens time-to-market across regions while reducing certification and maintenance costs, strengthening regulatory compliance and sustainability positioning. It supports USBC PD with multiple voltage profiles, including PPS and planned PD 3.1, delivering fast and stable power for high-performance notebooks, workstation docks, and networking/AI edge devices, enabling multi-device use with fewer adapters and cables.

(3) A compact single-fan ACDC 1000W 80PLUS Platinum power supply for high-end desktop systems, featuring a non-standby design. The architecture consists of CCM PFC, half-bridge LLC, and synchronous rectification. A combo controller IC is used for PFC and LLC, with a dedicated synchronous rectification controller on the secondary side. Housekeeping functions are managed by an MCU, providing dual-level programmable OCP protection and programmable fan curves. The PSU supports transient double peak power capability (1100W/40s, 1670W/10ms, 2000W/0.2ms), enabling expansion to higher-end graphics cards and peripherals. The design transitions from dual fans to a single fan while maintaining thermal performance, and utilizes output connector modules for system integration.

(4) A 65W wall-mount fast-charging adapter for premium business notebooks, designed with green principles and ESG objectives. The circuit adopts a CCM Flyback topology combined with third-generation GaN power devices and synchronous rectification. A SiP PD controller is integrated to reduce component count and power loss, improving overall efficiency while achieving low EMI performance. The adapter fully complies with 2027 ErP Lot 6 and DOE VII no-load and 10% load efficiency requirements.

(5) A 100W wall-mount fast-charging adapter for high-end business applications, developed with ESG and energy-efficiency targets in mind. The power architecture utilizes CRM PFC and QR Flyback topology with third-generation GaN power devices and synchronous rectification, effectively reducing power loss, enhancing efficiency, and minimizing EMI. The design meets the 2027 ErP Lot 6 and DOE VII no-load and 10% load efficiency standards.

(6) A 2400W 80PLUS Platinum ACDC power supply for high-end workstations, featuring an integrated standby converter. The design employs CCM PFC, half-bridge LLC, and synchronous rectification, extending the half-bridge LLC architecture beyond the typical industry limit of approximately 1500W to 2400W. A combo controller IC is used for PFC and LLC, with a synchronous rectification controller on the secondary side. Housekeeping functions are managed by an MCU, offering dual-level programmable OCP protection and programmable fan curves,

including fan stop operation under light load to improve efficiency. The PSU supports transient double peak power capability (3120W/40s, 3840W/10ms, 4800W/0.2ms) and adopts a gold finger output design to replace direct wiring or connector modules for improved system integration.

(7) A 65W adapter utilizing a high-efficiency Flyback architecture combined with third-generation GaN power devices, synchronous rectification, and an integrated PD fast-charging controller. The design achieves near-zero standby power consumption while incorporating multiple safety protection mechanisms. It balances high efficiency, reliability, and compact form factor, delivering an environmentally friendly user experience fully aligned with energy-saving, carbon-reduction, and ESG sustainability trends.

(8) A 72 kW high-power power rack designed for AI server applications, featuring a scalable, redundant, and communicative high-power AI power platform. The system supports synchronized startup and active current sharing technologies, delivering intelligent control, high reliability, and data center-grade power delivery capability.

(9) Developing a core-level 3200W titanium power supply for network servers. This power supply supports parallel operation of up to 8 units and can sequentially start up under full load. In sleep mode, power consumption is less than 5W, and it can quickly enter normal operation mode within microseconds.

(10) Developing a titanium 2400W power supply for AI server applications, supporting parallel operation of up to 6 units. It features rapid adjustment of output voltage transient response and quick current sharing. It can operate normally under extreme conditions, with a lifespan exceeding five years (operating environment up to 55°C, operating altitude up to 950m).

(11) Develop 23.5kW PSU and up to 100kW shelf for AI power rack. Suitable for 21-inch rack and up to 97.5% efficiency. Support hot swap power modules and provide power for both 48v and HVDC data centers.

(12) Develop 26kW BBU (Battery Backup Unit) for both 48V and HVDC systems. Support hot swap function and maintain stable power when utility is lost.

(13) Develop 1500kW rack total solution, including PSU, BBU, PMC, ACPDU and TOR. Suitable for next generation of AI server applications.

Human Input Solutions

Input device products include desktop keyboards, tablet keyboards, laptop keyboard modules, and mice. For desktop, small hyper-fast scroll wheel mouse, supercapacitor mouse, folio keyboards, and magnetic keyboards have been developed and have been adopted by customers and are about to be launched. Additionally, the development of detachable modular keyboards and smart (AI) Keyboard is ongoing. For laptops, capacitive keyboards, click anywhere touchpad and Piezo haptic touchpad have been developed, and continues to develop replaceable key modules. For new product development, the stylus pen has been launched and continues to expand its customer base. In addition, the mid-to high-end gaming controller has been evaluated and adopted by customers and has now been launched, and continues to expand its customer base.

Server Enclosures

(1) Regarding server chassis, with the additional new Vietnam factory joining the mass production, we continue to expand the supply of enterprise servers and North American CSP customers, also continue to join with customer to develop the next-generation models. The new generation OCP server chassis developed in-house has completed hard tooling and mass production for various application models.

(2) On the AI server chassis, the development of high-end NV MGX 4U and NVL72 1U chassis has been completed, and we are collaborating closely with customers to continue to develop for the next generation of mechanical solutions.

Cloud Data Center Cooling Solutions

(1) Heat Exchangers: We have successfully secured customer-designated cooperation for two products: the liquid-to-liquid in-rack CDU and the air-to-liquid RDHx. Both models have entered the safety certification phase. In addition, the first prototype of the new 1.5MW liquid-to-liquid in-row CDU has been completed and is currently undergoing testing.

(2) Liquid Cooling Manifold: Liquid cooling manifolds for new-generation GPU AI racks have been listed on the NVIDIA RVL. Customized manifold solutions are provided for cloud service providers and enterprise customers.

(3) MGX Liquid-Cooled Rack: MGX liquid-cooled racks for new-generation GPU AI platforms have passed NVIDIA RVL

certification. Customized liquid-cooled rack solutions further enhance the Company's capabilities in high-density Al and HPC data centers.

Electric Vehicle Charging Equipment

In the realm of AC charging stations, car manufacturers are developing wall-mounted AC charging stations to provide convenient charging services in public areas. These charging stations come equipped with the following features:

(1) Hardware Characteristics:

4.3-inch Display: Users can easily operate and view charging-related information.
RFID: Users can authenticate their identity using RFID cards.
Global 4G Module: Applicable to telecommunications and internet networks worldwide. The charging stations can enable remote monitoring and management.
Cable adapter: NACS to J1772 type, applied related pattern for the design.
Holster: Support both NACS & J1772, applied related pattern for the design.
Credit Card Reader: Users can use credit cards for charging services.

(2) Communication Protocols:

OCPP Protocol: Used for communication between the charging station and the backend management system.
ISO15118 Protocol: Enables digital communication with electric vehicles.
ISO15118 Protocol: Allows electric vehicles to feed AC power back to the home grid, facilitating an energy interconnection.
In scenarios where the grid has no power, the charging stations have batteries and can communicate with electric vehicles using ISO15118, feeding AC power back to the grid.

In the domain of DC fast charging stations, developers have created wall-mounted and upright DC charging systems with the following characteristics:

(1) Output Voltage Support:

CCS and NACS: 150Vdc to 1000Vdc

(2) Maximum Current Fixed Current & Fixed Power Charging Mechanism: Ensures efficient and safe charging.

(3) System Integration:

Complies with relevant UL & CE regulations for DC charging systems.
Incorporates 5, 12.1, and 24-inch screens, POS machines, RFID, Wi-Fi, and 4G module communication interfaces within different systems to meet various application requirements.
Implement Cable management system to enhance user experience.
Implements light and ultrasonic sensors in charging station models to enhance user experience.

Electromagnetic, thermal and high frequency signal integration techniques

(1) Develop power module integrated design techniques to reduce losses and dimensions in electronic products.
(2) Develop multiphysics simulation and analysis techniques for power racks, enabling integrated analysis to enhance power conversion efficiency and accelerate development cycles.
(3) Develop high-frequency signal integrity simulation and analysis technology to prevent interference in the transmission of ultra-high-frequency signals.

Wireless Connectivity Module

We provide wireless connectivity modules with various communication protocols for customers in different fields, including customized hardware and software design services as well as high-performance wireless RF and antenna performance to help customers realize intelligent wireless fast networking functions in AIOT client products

AI System on Module

To address the rapid growth of AI applications, a new intelligent AI System-on-Module (SOM) has been released to

customers.

The system platform itself is a fully functional computing device with a complete interface. Its rich audio and video streaming interfaces, combined with pre-trained and optimized AI models, can process data collected from remote devices or surrounding peripherals. This SOM provides various functions such as object recognition, posture detection, object classification, and audio alert event notifications. Users can also train their own AI models to implement custom applications.

Camera Devices

(1) Surveillance IP Camera: From professional security monitoring to smart home applications, and from indoor to outdoor environments, we offer a comprehensive range of network camera solutions. Key features include remote night vision, multi level optical zoom, ultra high resolution, privacy shutter protection, professional waterproof ratings, explosion proof and drop resistant designs, high quality and stable video streaming, and continuous recording. With AI integration, full color night vision is also achieved.

This year, we leveraged cost competitive chipsets to develop multiple home use cameras tailored to the consumer market, providing customers with a more diverse selection of products.

(2) Develop various AI cameras with the latest SoC and achieve the goal which announce the camera device and SoC at the same time. It includes the latest AI technology and AI ISP and can get great image quality to improve the AI-cloud base performance.

Edge Devices

(1) Develop a new generation of high-performance gateways to enhance intelligent control capabilities, it support multiple communications such as wired networks, Wi-Fi, BLE, ZigBee and Z-Wave. To connect various types of IoT devices. Integrating Cloud technology applications can effectively store and manage data, ultimately analysis results with AI services. Enterprise automation applications can be applied in smart manufacturing, smart buildings, and other settings.

(2) The 4K / 8K smart audio-visual lighting synchronizer, connects to smart lighting such as ambient bulbs and full-color ambient light strips, synchronizes with the content on the screen to automatically adjust the brightness and color. It connects to various media devices (such as streaming media, gaming consoles, and set-top boxes) to create an immersive audio-visual experience.

(3) Develop high-end intercom, implemented echo cancellation to support high performance two way audio, it can through the depth information to identify the hand gesture. They also support ultra-wide-band technology and existing BLE and NFC functions to achieve multiple ways to open the door.

Networking

(1) Ethernet Switch

In response to the increasing penetration of Wi-Fi 7, and the emergence of future Wi-Fi 8, LITEON Technology continues to develop enterprise-level Power over Ethernet (PoE) switches. These solutions focus on higher transmission bandwidth, lower latency, and greater PoE power delivery, enabling efficient support for next-generation wireless access points and IP camera systems through a single network infrastructure. By integrating power and data over Ethernet, LITEON's switches help simplify deployment, improve network reliability, and reduce total cost of ownership. In addition, LITEON Technology is expanding its portfolio of industrial wide-temperature-range PoE switches for smart-city traffic control centers, ensuring stable operation of surveillance cameras, wireless infrastructure, and future Wi-Fi 8 applications in harsh environmental conditions.

Power over Ethernet (PoE). Currently, LITEON's Switch + PoE technology supports IEEE 802.3af / 802.3at / 802.3bt (Type 4), with per-port power delivery up to 90W and a system power budget exceeding 1000W. With automatic power negotiation and backward compatibility, it enables flexible and efficient deployment of IP cameras and Wi-Fi access points with different power requirements.
Multi-Gigabit Ethernet. Designed in compliance with IEEE 802.3, the access switch supports diverse Ethernet port types and speed configurations, including 1G / 2.5G / 5G / 10G copper ports for flexible deployment of PoE-powered IP cameras and wireless access points. It enables 2.5Gbps over Cat-5e and 5Gbps / 10Gbps over Cat 6A, ensuring full utilization of Wi-Fi bandwidth. High-speed uplinks with 25Gbps or 100Gbps fiber interfaces provide scalable aggregation for high-density camera and wireless access networks.
Power over Ethernet (PoE) access switch are designed for SMB and enterprise network environments. The switch features a high PoE power budget, supporting 24-port and 48-port configurations to efficiently power IP surveillance cameras and wireless access points through Ethernet. It is well suited for enterprise campuses, commercial buildings, and smart infrastructure deployments. Integrated enhanced cybersecurity features, such as access control, traffic segmentation, and secure management, help strengthen network protection and align with current enterprise security

and compliance trends.

Successfully developed the following products:

A. 24-port and 48-port Layer 3 Multi-Gigabit PoE access switches with high power budgets
B. Layer 3 Gigabit PoE access switches with enhanced security capabilities and support for customized software

(2) Wi-Fi Access Point

LITEON's Wi-Fi solutions are dedicated to providing high-efficiency, stable, and easily managed wireless network environments. Through flexible collaboration models and product design, LITEON aims to meet diverse application demands while continuously innovating in wireless communication technology. In the field of Wi-Fi, LITEON has built its technology portfolio around Wi-Fi 6 / Wi-Fi 6E and Wi-Fi 7, and is actively preparing for future Wi-Fi 8 (IEEE 802.11bn), with a focus on further enhancements in wireless performance, capacity, network stability, and Ultra High Reliability (UHR) to support next-generation applications.

Wi-Fi 7 and future Wi-Fi 8 bring significant improvements in bandwidth, transmission speed, ultra-low latency, and multi-link connectivity. LITEON integrates AI-driven intelligence into its wireless solutions to optimize the management of Wi-Fi 7 and next-generation Wi-Fi 8 access points, enabling real-time spectrum analysis, adaptive radio resource management, and dynamic traffic optimization. By leveraging AI for predictive interference mitigation and automated performance tuning, LITEON ensures a smoother, more reliable wireless experience, while further improving transmission efficiency and latency performance. These advancements are designed to meet the high-density, high-performance demands of enterprise networks, smart infrastructure, and AI-enabled applications.
With the combination of AI applications and Wi-Fi 7, and readiness for future Wi-Fi 8, LITEON is committed to advancing intelligent, high-efficiency wireless communication solutions across SMB, enterprise, and residential markets, further strengthening its market competitiveness. By integrating AI-driven analytics with cloud-based management platforms, LITEON enables centralized monitoring, automated configuration, and real-time network optimization for deployments ranging from large-scale enterprise and SMB environments to smart homes and residential communities. Through the convergence of AI, cloud management, and next-generation Wi-Fi technologies, LITEON delivers the next generation of wireless communication solutions, ensuring enhanced connectivity, improved network efficiency, and simplified operations for both professional IT administrators and end users.

Successfully developed the following products:

A. Indoor consumer-grade dual-band Wi-Fi 7 access point, featuring a simple deployment, optimized for small-home and apartment coverage
B. Indoor enterprise-grade tri-band Wi-Fi 7 access point, integrating enhanced cybersecurity features and cloud-based management

5G small cell

LITEON has been a leader in 5G O-RAN communication technology for many years, integrating core capabilities in software and hardware research, development, and design. We are dedicated to developing a comprehensive range of the latest integrated 5G O-RAN small cells and related network management products. These solutions not only deliver technical advantages such as high performance, low power consumption, high data rates, and low latency, but also support a wide variety of innovative applications across commercial, microcell, and indoor/outdoor scenarios. In addition, LITEON has introduced its latest AI-RAN solutions, optimizing and providing customers with a comprehensive end-to-end roadmap from 5G to B5G and 6G.

LITEON has been deeply engaged in the 5G private network application field and has built a comprehensive global 5G ecosystem. We have successfully partnered with international telecom operators and global benchmark partners to complete diversified private network applications across continents, countries, and fields, such as smart hospitals, smart factories, smart campuses, and smart living. These efforts help and satisfy customers and partners in constructing high-efficiency, low-energy-consumption 5G network communication solutions, creating a win-win ecosystem. The following products have been successfully developed:

(1) All-in-one Small cell (Sub-6GHz: n77/n78/n79)
(2) O-RU (Sub-6GHz: n77/n78/n79 & mmWave)
(3) O-RAN Element Management System: EMS, Non-RT RIC, Near-RT RIC, rAPP, xAPP.

Automotive Electronics

We continue to focus on two core product lines—automotive lighting and automotive camera systems. Our R&D strategy centers on high reliability, mass-production readiness, and cross-platform scalability. Through platform-based and modular design approaches, we have successfully transformed our R&D achievements into market-competitive mass-production products, which have been adopted by international automotive OEMs

(1) High-Density LED Headlamp PCBA Platform

We have successfully developed a high-density LED headlamp PCBA platform that effectively integrates multiple lighting mode requirements, demonstrating strong system integration capabilities and high-power application expertise. In response to the automotive industry's growing emphasis on green design and carbon reduction, the platform incorporates considerations of product performance, structural configuration, and logistics efficiency from the design stage. This product has been successfully adopted by North American OEMs and has been entered into mass production in 2025. It is expected to generate scalable revenue momentum for the headlamp product line.

(2) Next-Generation High-Precision Lighting Module

We have also developed next-generation platform for high-precision lighting modules. The new platform design emphasizes high integration and manufacturing stability, effectively addressing efficiency and yield challenges encountered in the previous-generation products during mass production. This platform has been successfully introduced in the Japanese market and has received customer approval, further demonstrating our R&D maturity and mass-production execution capabilities in the automotive lighting field, while strengthening long-term cooperation with international automotive OEMs.

(3) High-Reliability Driver Monitoring System (DMS) Camera Module

In response to the growing demand for in-cabin safety monitoring and evolving regulatory requirements, we has successfully developed a high-reliability Driver Monitoring System (DMS) image module. The product complies with ISO 26262 Road Vehicles – Functional Safety standards at the ASIL B level and has passed functional safety validation by a Japanese automotive OEM. The product entered mass production in 2025 and is being supplied to the global market. This achievement supports our expansion in in-cabin sensing applications.

(4) Next-Generation DMS Camera Module

Based on the existing mass-production products, we also developed next-generation DMS camera module platform. The new design focuses on further enhancements in image quality, system performance, and energy efficiency, while also addressing low-power consumption and module miniaturization to improve overall system integration flexibility. This innovative platform has completed preliminary validation and has attracted strong interest and inquiries from several tier-1 customers. It demonstrates strong potential for future business opportunities.

Optoelectronic Semiconductors Components and their Component Modules

(1) In the field of high-performance photocoupler technologies, LITEON continues to strengthen its core R&D capabilities and build a differentiated and comprehensive product portfolio. In addition to its existing IPM and gate driver photocouplers, high-speed photocouplers, and optical isolation amplifiers widely used in industrial control, new energy systems, and industrial motor drive, LITEON has further expanded its photo relay portfolio. Beyond its established product offerings, the Company continues to invest in the development of higher-power photo relays, achieving ongoing breakthroughs in key technical parameters such as withstand voltage, load output current, and long-term reliability. These advancements enable broader application coverage and support the expanded replacement of traditional mechanical relays across a wider range of use cases, helping customers enhance system reliability while reducing maintenance costs.

In response to the rapid evolution of high-voltage renewable energy systems and data center power architectures, LITEON has further completed the development of a full range of photocouplers with extended creepage distance packaging, covering various photocoupler product categories. These solutions comprehensively address the requirements of critical applications, including high-voltage battery management systems (BMS) for new energy vehicles, high-voltage energy storage systems, and HVDC server power supplies, thereby continuously reinforcing LITEON's technology leadership in the high-performance isolation components market.

(2) Developed a VCSEL light source for OMS with high optical uniformity and wavelength stability, significantly improving image recognition reliability and cabin passenger safety detection performance.

(3) Developed high-power 3D sensing technology that enables longer sensing distance, higher depth accuracy, and stronger ambient-light resistance, significantly improving the overall performance of 3D sensing applications.

(4) Successfully developed a miniaturized multi-zone VCSEL with programmable light-field control, improving 3D sensing performance and depth resolution while reducing power consumption and meeting eye-safety standards, offering

greater flexibility for advanced sensing applications.

(5) Development completed for an integrated shutter sensor that combines the digital function IC, emitter, and detector within a single package, addressing the webcam privacy requirements of the laptop market.

(6) Mini LED components integrate specialized light-shaping designs with high-reflectance optical materials, advancing toward higher efficiency, brightness, and luminance uniformity. Through component miniaturization and module integration, they deliver high-performance display solutions for ultra-thin backlight modules, addressing the development trends of high-density premium displays and automotive applications.

(7) Programmable IC-controlled multi-color LED emission combined with optical beam angle design enables photo-semiconductor potting modules to integrate reflow-solderable packaging and multi-color white light. These solutions deliver energy efficiency and high reliability, supporting improved production efficiency, reduced power consumption, high-directionality outdoor display applications, and flexible multi-color independent driving.

(8) Highly integrated and miniaturized CBI LED indicators have become a key growth engine driven by the surge in AI data centers and high-performance computing servers. Leveraging multi-LED stacking integration and ultra-compact packaging, these solutions address space constraints in servers and high-speed switches, while accelerating deployment across AI and general-purpose server infrastructure markets.

(9) In automotive lighting applications, headlamps represent one of the most critical technical challenges. LITEON has developed the proprietary high-power H1N LED compliant with AEC-Q102, delivering 420–450 lumens of white light at 1A per LED. In addition, 102P/48P/24P Matrix LED solutions offer world-class brightness, high contrast, and excellent thermal performance, demonstrating strong technical capabilities and a firm commitment to mass production in the automotive market.

(10) Photo-optical light-guide modules focus on optical structure and light-mixing design, integrating optical paths, materials, and process technologies to deliver highly uniform lighting solutions. Flexible light engines with bendable designs are well suited for status indicators and ambient lighting applications, ensuring uniform light distribution and enhanced visual comfort across diverse application scenarios.

Lighting products

(1) VersaTEK Medium Floodlight: The development of the newly designed, slim-profile VersaTEK Medium floodlight for the North American market was successfully completed. This product delivers a high-performance, high-lumen lighting solution, offering luminous output of up to 50,000 lumens with efficacy reaching 190 lm/W. It is capable of replacing traditional 200–800 W high-pressure sodium lamps while achieving energy savings of more than 70%. The luminaire provides 14 mounting options, making it suitable for a wide range of applications. It features an IP66 ingress protection rating, a 3G vibration resistance rating, and a low-copper die-cast aluminum alloy housing, ensuring durability and reliability under harsh environmental conditions. Its lightweight design significantly enhances installation safety for field engineers. In addition, the product incorporates smart connectivity features and adheres to ESG-oriented product design principles, delivering energy-saving and carbon-reduction benefits while continuously strengthening the Company's competitiveness in the North American roadway and area lighting markets.

(2) Karbon Cobra Smart Roadway Luminaire: The Company completed the development of the next-generation Karbon Cobra roadway luminaire series, designed primarily for the North American market. This product line comprehensively addresses the latest demands for high efficiency, intelligence, and sustainability in roadway, urban, and area lighting applications. The luminaires adopt a lightweight, one-piece integrated structure with an aerodynamic, low-wind-resistance exterior design, enhancing structural strength while effectively reducing overall weight and improving installation and maintenance efficiency. Through low-glare optical design, uniform illumination, and optimized light distribution, the products enhance roadway safety and pedestrian visual comfort. The series supports standardized smart connectivity interfaces, enabling integration with wireless control and remote management systems. Designed in accordance with ESG principles, the product balances energy efficiency, carbon reduction, and environmental sustainability, further reinforcing the Company's technological competitiveness in the North American roadway and area lighting markets.

(3) ILuzTEK Smart Roadway Luminaire: The development of the new-generation intelligent roadway lighting product, ILuzTEK, was completed. Designed in compliance with European CE and ENEC standards, the product has been optimized for the climatic conditions and infrastructure requirements of Latin America and the Caribbean. ILuzTEK utilizes high-efficiency LED light sources and a modular micro-lens optical system, achieving overall luminous efficacy exceeding 150 lm/W. The product offers a luminous flux range from 2,800 to 25,000 lumens and a power range from 22 to 170 watts, meeting the diverse needs of urban roads, highways, and public spaces. Equipped with the proprietary ECORidge spectral technology, ILuzTEK effectively reduces blue light content while balancing roadway safety, energy efficiency,

and ecological friendliness. The luminaire features a die-cast aluminum housing with IP66 and IK08 protection ratings and supports a 7-pin NEMA smart control interface, enabling real-time monitoring and future smart city expansion. This product demonstrates the Company's R&D capabilities in smart lighting and sustainable infrastructure.

(4) Embedded Smart Lighting Controller : The Company completed the development of an embedded smart connectivity controller fully integrated with lighting products. This solution effectively reduces the overall deployment cost of smart street lighting networks while enabling real-time monitoring of luminaire operating status. The controller seamlessly integrates with AI-driven smart roadway infrastructure cloud management systems, enhancing networked lighting management efficiency and supporting customers in achieving centralized monitoring and operational management of smart street lighting systems.

(5) AI Smart Roadway Management System : The Company continued the development of an AI-based smart roadway infrastructure cloud management system with multi-asset management capabilities and added operation and maintenance management functions to further enhance overall infrastructure management efficiency. By integrating Google Maps services and an AI chatbot interface, the system significantly simplifies the operation and management processes of smart street lighting networks, enabling customers to efficiently implement centralized monitoring and operational management.

(6) Intelligent Traffic Signal Detection System : The development of an intelligent traffic signal detection system was completed. By analyzing key parameters such as voltage, current, and luminance, the system can diagnose the health status and operating conditions of traffic signals in real time. With accurate service life prediction capabilities, the system enables proactive maintenance mechanisms, significantly improving the reliability and operational stability of traffic infrastructure.

(7) Interlux Smart Intersection System : The Company successfully developed the Interlux Smart Intersection Hub, which was recognized with a Silver Award at the Edison Awards. Integrating 5G communications, AI computing, and multiple sensing technologies, the product provides round-the-clock pedestrian safety protection through active optical warning mechanisms. It also features digital twin data acquisition capabilities, establishing a critical technological foundation for V2X infrastructure and setting a new benchmark for intelligent transportation applications.

Microgrid with Charger related products

(1) Development of a cloud-based Microgrid EMS platform to manage the EV chargers, BESS, Generator...etc, to optimize the energy usage cost and resilience as well as reduce the infrastructure upgrade cost.

(2) Development of a cloud-based energy management system with predictive algorithms (for solar power, load, or electricity prices) and optimal scheduling methods for energy storage systems.

(3) Development of a cloud-based charging station management system with dynamic load management algorithms, allowing operators to display charging station information and integrate with the energy management system (EMS) for optimal energy-saving settings adjustments.

4.1.3.3 Future R&D Plans

The categories above and new businesses will continue to be given equal weight in R&D projects so to meet customer expectations and market demand. Flagship R&D projects can be found in Chapter 6. Review of Financial Conditions, Financial Performance, and Risk Management under the Analysis of Risk Management.

4.1.4 Long-term and Short-term Development

The short-, medium-, and long-term business development plans of LITE-ON can be approached from product prospects and market prospects as follows.

1. Product prospects

Short term

By strengthening our global operational footprint and capacity deployment, we systematically optimize our product portfolio and proactively align with emerging standards and technologies to ensure strong market relevance. With organizational agility and execution speed at the core, we shorten the cycle from design and development to delivery, enhancing responsiveness to customer needs and building strategic partnerships for mutual growth, thereby reinforcing long-term order stability and operational momentum.

Medium term

By focusing R&D resources on strategic product upgrades, we continue to develop high-performance and low-carbon solutions while optimizing processes to enhance manufacturing efficiency. Through reliable, forward-looking technologies and deep customer collaboration, we establish long-term and resilient strategic partnerships.

Long term

Raise the standards for R&D and invest more in patent applications, develop a complete product line, and improve the production process to increase product yield and quality. Look toward trends in technologies and extend the product reach into new fields and applications. Move forward from supplying parts and components to offering system integration that satisfies the global demand for total solutions in key markets. Take products to the next tech level while building a global logistics management and delegation system to establish by integration a stable, permanent international marketing network. Create more financial administration functions overseas and improve the performance of overseas sales centers as part of the ongoing effort to strengthen core competencies. Use open communication channels and management systems to connect the business units and facilitate cooperation to make efficient use of group resources and maximize synergy.

2. Market prospects

Short term

We reinforce the performance of our existing products while advancing our high-end portfolio, delivering comprehensive solutions that meet customer and market needs. This dual approach strengthens our competitive advantage and supports sustained growth in the marketplace.

Medium term

Enhance customer services on an ongoing basis, and provide total solutions in different end markets, thereby gaining a larger global market share in existing products.

Long term

Achieve higher economies of scale, actively explore sales opportunities around the world, and strengthen the global network for high-end products and services by diversifying markets to reduce the impact of any one market or changes in the economic outlook.

4.2 Market and Sales Overview

4.2.1 Market Analysis

1. Main product distribution regions

Unit: NT$ thousands, %

Region/Year	2025
		Sales	Percentage (%)
Domestic Sales		761,662	0.46
Exports	Americas	60,624,543	36.50
	Europe	17,637,428	10.62
	Asia	86,662,993	52.18
	Other	398,233	0.24
Total		166,084,859	100

2. Market shares

Most of LITEON's products enjoy the leading position in the market. In terms of LED components, the opto-semiconductor production value ranks top seven globally, and among which, the photocoupler shipment is No.1 globally. Power supply is widely used in different ICT products, cloud computing data centers and servers. LITEON is the global top two power supply manufacturer.

3. Future market supply and demand and growth potential

Based on market reports from several research institutions, the Company has made future market size and growth estimates for its major products/services as follows:

Main product	Estimated market size in 2026	Estimated CAGR (%) in upcoming 3 to 5 years
Opto-electronics - LED	approx. US$ 13 bn	~6%
Power supply	approx. US$ 59 bn	~6%

(1) Opto-electronics products – Opto-semiconductor supply and demand

LITEON's optoelectronic semiconductor portfolio spans both visible and invisible light applications. In invisible light, optocouplers benefit from rising demand in high-speed data processing, communications, security systems, industrial automation, and new energy applications. The global high-end optocoupler market is projected to deliver a compound annual growth rate of nearly 9% from 2026 to 2030.

In terms of invisible light products, the infrared sensor market continued to expand. Products such as eye tracking, 3D sensors, and biometrics and their applications in popular areas including AR/VR metaverse, automotive ADAS system, onboard sensors (driver monitoring system), and security system.

For automotive LED, the global market penetration of LED headlights for passenger vehicles exceeded 70% and the penetration of LED for new energy vehicles reached 92% in 2022. The penetration of LED headlights is expected to maintain the upward trend. As automotive lighting shifts toward higher-value applications and more advanced technologies are introduced in 2026 models, the market is projected to record a compound annual growth rate of nearly 6% from 2026 to 2029.

(2) Supply and demand of power supply

Global tariff policy shifts, memory price increases, and other systemic factors have softened end-market demand and created volatility across the supply chain. According to market research, global PC shipments in 2026 are expected to remain conservative, with high-end gaming and commercial models showing relatively stable demand. As brands increasingly introduce integrated AI capabilities, AI PCs are expected to accelerate in adoption, with penetration projected to reach 50% in 2026.

Owing to the development of the space economy, countries are proactively deploying satellites, and major operators are devising plans to increase commercial satellite launches. Research institutions estimate that the

compound annual growth rate from 2024 to 2030 to reach nearly 40%, which will significantly drive the demand for low Earth orbit satellite power supplies.

Due to the combination of a rising demand for cloud computing and substantial advancement in chip specification, the specification upgrades of power supply units for servers and networking products are prone to be of high density, high efficiency, and high wattage. This will continue to fuel the demand for high-end power supply units.

4. Competitive niche, favorable and unfavorable factors for future development, and the company's response to such factors:

(1) Favorable factors

LITEON is equipped with excellent R&D and design capabilities. The Company can provide customers with a complete range of total integrated solutions (excluding channel marketing) in parts and components, opto semiconductor, server, cloud computing and data center, automotive electronics, AIoT and smart applications, IT and other peripherals as well as one-stop services. In addition to having an integrated supply chain, the Company invests extensively in R&D on an ongoing basis and utilizes its abundant resources to improve product quality and develop new products. LITEON works to differentiate itself from traditional EMS/ODMs and make itself the first-choice supplier for customers.

(2) Unfavorable factors and countermeasures

Unfavorable factor	Countermeasure
Impact of changes in global economic outlook and geopolitics	Find new customers, develop new products, increase technical capabilities, expand global capacity, and strengthen local production capability to counter changes in the global economic outlook and geopolitics.
Impact of exchange rate changes on profit	A complete set of foreign exchange hedging measures are already in place to counter changes in exchange rates.
Volatility in prices of oil and raw materials	Enter long term agreements with suppliers to provide a steady supply at stable prices to counter volatility in raw material prices.

4.2.2 Production Procedures of Main Products

1. Important Applications of main products

Main product

Applications

Opto-electronics products - LED

Isolation, sensors, light sources, and related applications. Isolation products consist of photocouplers, which are mainly used in industrial control, green energy, 5G infrastructures, and electric car charging systems. Sensors are used in security monitoring, wearable devices, AR/VR, and self-moving robots. Light sources are used in computers and peripherals, consumer and industrial indicator lights, LED lighting, vehicle lighting, indoor/outdoor display panels, UV sterilization, and creative display with mini LED in IT equipment.

Power supply

Power supplies are used in personal computers, communications, game consoles, smart home devices, low Earth orbit satellites and industrial automation facilities, and power management systems used in AI servers, general purpose servers, network communication equipment in datacenters.

2. Production process for main products

4.2.3 Supply Status of Main Materials

All LITEON factories around the world have stable long-term relationships with their affiliated factories and raw material suppliers. Therefore, suppliers are able to supply at the most competitive prices and forms. It allows LITEON to maintain a long-term advantage in product cost and to provide the best services for its customers.

4.2.4 Major Suppliers and Customers

4.2.4.1 Major Suppliers

Not applicable as the Company's procurement from a single supplier does not exceed 10% of its total procurement in the last two calendar years.

4.2.4.2 Major Customers

	2025				2024
Item	Company	Amount	% of Net Sales	Relation with Issuer	Company	Amount	% of Net Sales	Relation with Issuer
1	Client A	18,783,299	11.31	Third Party	Client A	16,485,123	12.02	Third Party
2	Others	147,301,560	88.69	-	Others	120,648,771	87.98	-
	Net Sales	166,084,859	100		Net Sales	137,133,894	100

Note: As of the date of publication of the annual report, there is no financial report of 2026Q1 has been reviewed by certified public accountant.

Operational Highlights
124

4.3 Human Resources

Employee statistics in the past two years up to publication date.

Year		2024	2025	2026 (as of Feb 28)
Number of employees	Managers/Professionals/Clerical	11,019	11,427	11,548
	Technician/Operator	22,144	24,726	23,832
	Total	33,163	36,153	35,380
Average Age		32.3	33.1	33.4
Average Years of Service		4.4	4.3	4.4
Education	Ph.D.	0.2%	0.2%	0.2%
	Masters	6.0%	6.0%	6.2%
	Bachelor's Degree	25.3%	28.9%	29.9%
	Senior High School	34.2%	29.6%	28.5%
	Below Senior High School	34.3%	35.3%	35.2%

Note: The above information does not include outsourcing labor.

4.4 Environmental Protection Expenditure

4.4.1 Loss due to environmental pollution in 2024 up to publication date in 2025:

In the last year and as of the date of publication, no penalty for the significant environmental violation.

4.4.2 Countermeasures:

LITEON commits to designing and manufacturing products that are friendly to the environment and to educating employees on the importance of environmental protection in order to implement responsible production and effectively control air pollution, hazardous waste, energy use and noise generated during the design and manufacturing process. In addition, LITEON continually improves our environmental management system to define operational procedures for environmental control and to monitor the progress of its implementation. We have set up the carbon emission reduction and waste reduction goals beyond the regulation and in coordination with international trends. We enforced the company's governance capacity on environment-related risks to minimize the impact on the environment in the operation and practice the corporate's sustainable development.

4.5 Labor Relations

4.5.1 Employees are the Company's most important partner in achieving sustainable development. To ensure employees' rights are protected, the Company has installed open two-way communication channels and complaint hotlines aimed to protect employees and their rights. The Company also provides complete career development plans and a friendly workplace. It supports a variety of activities and employee care programs to build a working environment that belongs to the "LITEON" corporate culture for employees. The employee benefits, continuing education, training, retirement systems and their implementation as well as employer-employee agreements and various measures to protect employees' rights are described below.

1. Employee benefits and implementation

The ongoing investment in employee benefits are aimed at employees' needs in work and life as well as health and safety. In addition to wages and salaries, employees receive a range of non-work-related allowances and benefits for themselves and their families. These programs encourage employee loyalty and team spirit in the Group. The company provides the following benefits and mental/physical health promotion programs:

LITEON launched its "employee stock ownership trust" in September 2021, and has invited employees to become LITEON shareholders; Taiwanese employees can choose to participate according to their personal intention. A fixed amount is allocated from the monthly salary of participants, and the Company will allocate a corresponding reward and deposit it into a special trust account. LITEON increased the reward allocation (with a maximum increase of up to 100%) starting from January 2025. The trust allows employees the opportunity to share the operational results of the Company over the long term, accumulate wealth, and create a mutually beneficial partnership.
An employee remuneration system is in place for the company to share its success with its employees.
The Employee Welfare Committee has been established according to the law for the purpose of working to enhance employee benefits and emergency assistance programs.
The group insurance plan provides an additional layer of protection for employees.
Worker safety, environmental protection, and health and safety education are part of the on-the-job training.
Tokens of appreciation are given out on the Chinese New Year, Labor Day, the Dragon Boat Festival and the Mid-Autumn Festival in addition to individual birthday gifts.
Provide employees with travel subsidies and community subsidies every year to enrich the leisure life of employees and support for employees to form different social clubs are available to encourage a work-life balance.
Employees are provided with free various types of lunch, child care plan, newborn grant and other benefits that exceed the statutory minimum. We are continuing to optimize our support for employees.
Employees are entitled to 7 days of "Enjoy Fun Leave (renamed to Planned Fun Leave effective Jan.01, 2026)" annually. No leave documentation is required, and the leave is fully paid, allowing employees to enrich their lives beyond work.
Starting from 2026, Lite-On implements flexible parental leave of absence policy, allowing employees to apply for parental leave of absence on a "day" basis. During the leave period, the employee's seniority and various company benefits are retained, providing a more friendly and flexible childcare support environment.
The Employee Assistance Programs offers counseling as well as mental health, business administration, legal affairs, health care, and finance advice.
Health-, management-, or charity-themed lectures are given every year for employees to enrich their life and broaden their visions in leisure hours.

2. Employee education and training and implementation

1. LITEON ELITE Talent Development System

To fulfill the mission of LITEON's Talent Sustainability Project, the Company has established the LITEON ELITE Talent Development System, focusing on four core competencies—organizational culture, efficient growth, innovative technology, and excellent leadership—to cultivate, identify, and strengthen talents at all levels and build a robust talent pipeline. The Company's talent development framework covers the full employee lifecycle, from new hires to senior management, and integrates professional development with personal growth. Through structured training programs and optimized onboarding, employees are supported in developing professional and leadership capabilities aligned with the Company's mission, vision, and compliance requirements. Leadership development initiatives include the Executive Development Program (EDP) for senior executives, which enhances strategic perspective and leadership capabilities, as well as standardized capability-building programs for middle-level and frontline supervisors to strengthen a stable leadership pipeline. In professional capability development,

the Company establishes quality excellence as a shared foundation and enhances product-specific domain knowledge through digital learning platforms and on-the-job training. Additionally, diversified learning resources are provided to support employees in continuous learning and self-development. Furthermore, the Company has implemented flagship programs for next-generation key talents, including the Pilot Z Program, the LiMI International Intelligent Manufacturing Talent Program, and the Light Seeker Program internship initiative, to cultivate future core capabilities. Through the ELITE Talent Development System, LITEON continually enhances organizational effectiveness and advances its mission and vision of sustainable development.

(2) Training implementation

In 2025, LITEON Group delivered 5,534,994.3 hours of training. On average, each employee attended 153.1 hours.

RBA code of conduct course in 2025

Locations	Total of attendees	Percentage of total employee	Total training hours
Taiwan	6,946	100%	53,792
Mainland China	19,379	100%	1,030,954
Other Overseas	9,828	100%	263,704
Total	36,153	100%	1,348,450

Note. The courses cover the Responsible Business Alliance (RBA) Code of Conduct, the LITEON Human Rights Policy and Ethical Corporate Management Principles, internal audit and control courses, occupational health and safety courses, and energy conservation and carbon reduction campaigns.

Anti-Corruption including material insider information, anti-trust and compliance courses in 2025

Locations	Total of attendees	Percentage of total employee	Total training hours
Taiwan	6,946	100%	36,153
Mainland China	19,379	100%	57,711
Other Overseas	9,828	94%	105,369
Total	36,153	99%	199,233

Total training expenses in 2025 were NT$ 558 million which includes actual cost and opportunity cost (the payroll for attendees working hours).
Retirement and implementation

LITEON makes contributions to employees' pension funds according to local regulations, regardless of where it operates in the world. Today, 100% of its employees have joined a pension plan. In Taiwan, the pension policy complies with the Labor Standards Act where contributions are made regularly to employees' pension accounts. In China, employees are insured according to local regulations, and is fully funded to provide for employees' retirement needs in order to secure a comfortable lifestyle after retirement. For employees in Thailand, companies establish pension policies and make employees' pension contributions in compliance with local regulations. The human resource department regularly reviews the list of soon-to-be-retiring employees, and will inquire about their plans for retirement and help them make career plans.

In Taiwan, pension schemes are governed either by the Labor Standards Act (the old scheme) or the Labor Pension Act (the new scheme) of the Republic of China. Employees who came on board on or before June 30, 2005, are entitled to carry forward their tenure of service from the old scheme to the new scheme. Under the old scheme, the company contributes 2% of employees' monthly salaries into a pension account held with the Central Trust of China. This reserve has accumulated to NT$ 1.04 billion to date, and is fully funded to provide for employees' retirement needs. Under the new scheme, the company contributes 6% of employees' monthly salaries into their personal pension accounts; In addition to the monthly 6% contributions made by the employer, employees may also choose to contribute another 0%~6% of their salaries into their pension accounts.

Labor-management agreement status:

LITEON values the employer and employee relationship. The company works to strengthen communication between employees and their supervisors on work targets, skills and behaviors regarding their units and individuals. Large-scale international communication meetings and new hire communication meetings are also regularly hosted by top executives in person for the direct communication of company targets, culture and values. Regular employer-employee meetings take place to gather and deliver feedback and suggestions from employees and facilitate a friendly employer-employee relationship that unites the employer and employees toward the same goals. The company makes communication channels available to employees so that all employees are able to give their comments or suggestions at any time.

5. Freedom of association and collective bargaining

LITEON's policy on freedom of association and collective bargaining follows and complies with the freedom of association requirements under RBA 8.0 (2024). In conformance with local law, respect the right of all workers to form and join trade unions of their own choosing, to bargain collectively and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation or harassment. LITEON respects employees' freedom of association and allows employees to form trade unions. Union representatives are elected by employees, and represent the employees in regular engagement with the management. Meanwhile, the unions gather information, call regular meetings, discuss counter measures, and organize union events, such as group travel and employee care programs. The unions also work to protect the rights of employees and maintain a stable and healthy employer-employee relationship. LITEON protects employees' freedom of association and right of collective bargaining. Many LITEON locations around the world have formed unions, including Taiwan, China, Thailand, Vietnam, and Mexico. As for locations where no union has been formed, all employees are fully protected in the same way by local laws and rights endowed by labor contracts. Furthermore, LITEON provides employees with a wide range of communication channels as described above in order to ensure and maintain that employee feedback can be fully expressed. Meanwhile, the unions have not expressed the need for collective bargaining, and so no collective agreement has been entered into.

6. Protection of employee rights and implementation

The Employee Welfare Committee, the Pension Supervision Commission, and the Safety and Health Committee are established to regularly review contributions to and utilization of the Employee Welfare Fund, contributions to and utilization of the pension plan, and adoption of health and safety behaviors and habits. Internal education and training courses and other regular and ad hoc communication meetings all serve to reiterate the company's policies, programs, and various benefits.

7. Employee code of conduct

The company uses its intranet website to convey clearly to its employees the benefits and programs implemented by the company over the years. The employee code of conduct is also stated clearly on the website. It is mainly described as follows:

(1) Company employees may not give or accept any gifts intended to improperly influence normal business or decisions.

(2) Customers and company employees may engage in reasonable social activities within the course of the business contact in so far as such activities are clearly for business purposes and are respectable in tone.

(3) Company employees shall avoid any improper actions, and under any circumstances, company employees shall not offer or accept any form of kickbacks or request improper benefits.

(4) Duty of confidentiality: Employees, during employment and after termination of employment, may not disclose or give to any third party any trade secrets of LITEON (including its affiliates) or a third party that are developed or acquired during employment.

(5) Intellectual property rights: All intellectual property or other related rights created or completed by employees performing their duties by use of LITEON's tangible or intangible resources shall be the exclusive property of LITEON or individuals designated by LITEON.

8. Organizational Health Survey

To better understand employee needs and guide continuous improvement, the Company conducts a global Employee Engagement and Organizational Health Survey every two years. The latest survey, conducted in July 2025 with an external consultant, collected 7,998 valid responses with a 92% response rate, ensuring strong representativeness.

The average engagement score reached 82.5, with strong results in open communication, employee care and flexibility, multilingual support, inclusive culture, and mechanisms addressing harassment and discrimination. These findings reflect steady progress in talent sustainability and workplace well-being.

Based on the survey insights, the Company is enhancing communication transparency, employee support, and diversity and inclusion initiatives. Key actions include strengthening multi-level communication platforms—such as biannual Town Hall Meetings, the MVP Summit for new employees, and quarterly BU Head meetings—to keep employees informed and encourage feedback.

In diversity and inclusion, the Company supports the “Filipino Family” employee group, provides onboarding assistance and Mandarin courses for foreign employees, and continues to develop the Women of Wisdom (WoW) network to promote gender-inclusive culture and female talent development.

Going forward, the Company will expand multilingual accessibility, enhance employee care and mental-health support, improve communication channels, and deepen DEI initiatives, building a resilient, healthy, and inclusive workplace where employees and the organization grow together.

4.5.2 In the last two years and as of the printing date of the annual report, there have been no significant labor disputes.

However, the Company was fined for the following labor inspection results:

NT$200,000 issued on 07/22/2024 for the extension of working hours exceeding permitted limit (Labor Standards Act Article 32 Paragraph 2).

During a labor conditions inspection conducted by the competent authority in 2025, a review of a production-line employee’s attendance records for August 2022 identified overtime hours exceeding the statutory limit applicable at the time, resulting in an administrative fine in accordance with relevant regulations.

Since July 2023, weekly reviews of employees’ accumulated overtime hours within each month have been conducted, with classifications of “Normal,” “At Risk,” or “Warning,” together with proactive reminders and a requirement for timely managerial intervention and control to ensure compliance with labor regulations. In addition, manufacturing automation and process optimization are being advanced to fundamentally reduce reliance on overtime work. Through a dual-track approach combining policy- and system-based management and operations improvement, the Company continues to strengthen compliance management and promote a sustainable working environment for employees.

4.6 Cyber Security Management

Ensure the high availability, integrity and confidentiality of the company's information system operations, implement network and system information security control and protection measures to protect the sensitive information of customers and stakeholders, and provide management with key and timely management information to improve decision-making quality, and reduce company operations and information security risks.

Information Security Risk Management Framework

An information security management system based on the ISO/IEC 27001 international information security standard has been introduced across the board by LITEON. A cross-department and cross-functional Information Security Committee chaired by the company chairman was also established. A dedicated information security unit was set up with responsibility for the management of information security technologies, information security compliance, enforcing the Company's information security management system, identify internal/external topics in information security management as well as stakeholder requirements and expectations on information security for the Company, carry out information security protection tasks, responding to information security events, recovery after information security events, prevent information security events, and reduce the damage from information security events.

Information Security Policy

LITEON attaches great importance to the security and privacy of all stakeholders, including internal employees, external customers (clients, suppliers, consultants and partners, etc.), shareholders and operation-related information assets, in order to ensure the confidentiality, integrity, availability and legality of information assets. And to avoid internal and external deliberate or accidental threats.

Detailed Plan for Information Security Management and Resources Invested

(1) Information Security Management and Audit Mechanism

In order to implement the information security management mechanism and ensure the confidentiality, integrity and availability of information assets, LITEON follows the ISO/IEC 27001 international standard and uses the PDCA cycle operation model to establish, implement, maintain and improve the information security management system, it obtained the ISO/IEC 27001:2013 Information Security Management System Certificate in 2020, and it obtained the new version of ISO/IEC 27001:2022 Certificate in 2024, which we continue to update. The security management system has verified and established an information security compliance team, to jointly promote and confirm the effectiveness of information security management measures, which includes a total of ten colleagues from the Information Security information center and more than thirty information security representatives selected from public institutions and functional units. Based on the ISA/IEC62443 industrial control standard, an industrial control information security management and control system is established and a systematic information security management and control mechanism is introduced.

(2) Information Security Technology Control and Deployment

A. Regularly perform system vulnerability scans and third-party external security ratings to prevent hackers from intruding and stealing company confidential information through system vulnerabilities.

B. Through the information security monitoring mechanism (Security Operation Center, SOC), real-time monitoring and identification of information security incidents are carried out to strengthen the contingency handling of information security incidents. Establish a complete information system security protection network from the perspective of endpoint, network, and cloud security protection, including endpoint management and network behavior analysis of personal information devices (such as desktop computers, laptops, tablets, and smart phones, etc.), cloud platform management to implement the protection of employee personal data, company confidential information, customers and suppliers, etc.

C. The Azure Information Protection (MIP, The Microsoft Purview Information Protection mechanism) and Multi-Factor Authentication (MFA) enhance vendor login management, critical service personnel connection management, data access and protection for office work and Work from Home (WFH) reduced the risk of information being compromised while employees are working off-site. Cloud digital stools such as Microsoft Office365, encryption, identification, authorization principles, and remote secure access mechanisms help to protect the personal information of employees and confidential corporate correspondence.

D. Promote the real-name system for digital information asset records, establish a unified asset record management platform, ensure that all information equipment can be quickly identified and traced, and implement full-process management of information asset lifecycle, including procurement, use, transfer and disposal.

E. The ISA/IEC 62443 industrial control standard served as the basis for the establishment of industrial control information security controls. System information security management mechanisms were introduced with enhanced security management for production IT equipment to protect against anomalies that impact

on productivity and reduce the risk of production interruptions due to external attacks on the production environment. This information security measures include user authentication and permissions management for industrial control devices, industrial control network partitioning and connection restrictions, virus and hacker protection measures for industrial control equipment (e.g., monitoring of network anomalies, antivirus flash drives, and online IPS protection), portable device control, and backup mechanism for critical equipment.

F. Ensure LITEON's network connection security by managing the ingress and egress of information equipment and network applications, implementing strict identity verification and authorization processes, planning a zero-trust network architecture, and establishing endpoint protection and security monitoring systems to prohibit unauthorized devices from connecting to the company's network. Additionally, to achieve centralized network management and application visibility, implement a Software-Defined Wide Area Network (SD-WAN) to connect Lite-On's corporate networks across various locations, centralize network management, and enhance network application visibility.

G. To quickly detect the latest external threats, conduct continuous threat exposure management and dark web intelligence gathering, while simultaneously enhancing the monitoring frequency of cybersecurity control items. This will facilitate rapid response and improve management processes to block the latest external threats.

(3) Information Security Education and Training

To enhance the information security awareness of our employees, the Company defined the "Personnel Information Security Requirements and Education and Training Management Procedure" to serve as basis for management.

A. Promotion of Information Security Awareness: Information security-related information is announced and promote through various channels and meetings when appropriate to enhance the information security awareness of employees.

B. Information Security Education and Training

a. New hires are required to sign the Code of Professional Ethics and undergo information security education and training upon arrival to familiarize them with the Company's information security policy and requirements.

b. Implement regular information security education and training for employees every year. All colleagues should complete 1 hour of information security education training every year. We also plan information security and privacy-related education and training courses of different natures for different roles and functional personnel, including information security awareness training, privacy protection education and training, internal major information processing procedures, etc. Through continuous training, the company's employees' security awareness is enhanced and internalized in various operations to implement the safest and most stringent information security protection.

C. In addition to education and training organized by the Company, information security representatives and auditors at each unit must also attend external training events or forums to learn about protective mechanisms for information security and the latest types of information security threats to strengthen the information security protection capabilities at LITEON.

D. Conduct periodic, unannounced social engineering drills each year to simulate real-world cyber attack scenarios. These exercises aimed to continuously enhance employees' cybersecurity awareness and strengthen the organization's response capabilities to social engineering threats.

(4) International Certification

A. LITEON obtained ISO/IEC 27001:2022 Information Security Management System certification in 2024, the certificate is valid from November 16, 2024 to July 1, 2026. LITEON has established an information security audit team to confirm the adequacy of information security management measures and continuously verify and maintain the validity of the certificate.

B. ISA/IEC 62443 certification was obtained by LITEON in 2022. The information security management mechanisms of industrial control equipment in the production environment were also strengthened in accordance with international information security requirements for industrial control.

Losses and Potential Impact of Major Information-Communication Security Events, and Response Measures

In the most recent fiscal year and up to the publication date of this Annual Report, LITEON did not experience any material operational or financial impacts arising from information and communication security incidents.

In 2025, the Company received no complaints regarding the infringement of customer privacy or the loss of customer data, demonstrating the effectiveness of its information security governance and data protection measures. LITEON is committed to protecting the security and privacy of operation-related information assets of internal and external parties and attaches great importance to the defense of information security threats from internal and external parties. It continues to follow up on the updates of information-related regulations and domestic and foreign information security threat information, so as to Timely adjust the operation and monitoring of various information security management and control mechanisms to reduce the operational impact of enterprises due to information security threats, implement information security responsibilities, and achieve sustainable development of the enterprise.

Personal Data Protection

The Company places a high value on customer privacy and personal data protection. Before providing personal data to external parties, the Company is required to enter into confidentiality agreements with the recipients or suppliers to ensure adequate protection of personal data. When collecting personal data from external individuals, the Company shall fulfill its notification obligations and obtain the data subject's consent in accordance with applicable laws, so as to ensure that the data subject is fully informed of the manner in which his or her personal data will be used and the rights available to him or her. Internally, the Company implemented the PIMS (Personal Information Management System) in 2021 and established relevant documents, which are published on the company's information security platform to establish guidelines for personal data protection policies. In addition to formulating the "Privacy Protection Management Policy" as the highest guiding principle, the Company has also established various personal data protection management measures to ensure that personnel and business units have specific guidance to follow regarding the collection, processing, and use of personal data. In daily operations, the Company continuously promotes the implementation of the personal data protection system through risk assessments, document control, and regular training to comprehensively enhance internal privacy protection awareness.

Operational Highlights
132

4.7 Important Contracts

Nature of Contract	Contracting parties	Commencement date/expiration date	Content	Limitation clauses
Manufacturing and sales agreements	Multinational corporations, including but not limited to 3C and IT industries.	Since March 8, 2001	Design, manufacturing, and sales of LED Opto-semiconductors packaging and lighting applications, auto electronic parts and components, auto camera modules, EV chargers, server power systems solutions, networking modules and components, power supply, computer keyboards and other related parts or components of the said product.	Confidentiality clauses
Licensing agreements	Several patent owners or Licensors (including but not limited to optoelectronics, IT, keyboard and the related technical fields).	Since June 30, 2007	License and the payment or collection of royalty.	Confidentiality clauses

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5. Review of Financial Conditions, Financial Performance, and Risk Management

5.1 Financial Status

| Year
Item | Year
2024 | 2025 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | % |
| Current Assets | 169,116,615 | 164,020,954 | (5,095,661) | (3) |
| Property, Plant and Equipment | 18,775,950 | 24,752,406 | 5,976,456 | 32 |
| Intangible Assets | 3,156,476 | 3,059,813 | (96,663) | (3) |
| Total Assets | 204,682,769 | 205,687,383 | 1,004,614 | 0 |
| Current Liabilities | 107,869,245 | 109,597,232 | 1,727,987 | 2 |
| Non-current Liabilities | 5,902,800 | 6,111,358 | 208,558 | 4 |
| Total Liabilities | 113,772,045 | 115,708,590 | 1,936,545 | 2 |
| Share Capital | 23,472,500 | 23,167,758 | (304,742) | (1) |
| Capital Surplus | 22,716,565 | 21,560,557 | (1,156,008) | (5) |
| Retained Earnings | 46,299,554 | 49,832,936 | 3,533,382 | 8 |
| Total Equity | 90,910,724 | 89,978,793 | (931,931) | (1) |

Effect of changes on the company's financial condition (deviation over 20% and difference amount over NT$ 10 million) and related impact:
The increase in Property, Plant and Equipment was mainly due to increased capital investments during the current period.
If the impact is significant, indicate future plan on financial position: Not applicable.

134

5.2 Financial Performance

5.2.1 Analysis of Financial Performance

Unit: NT$ thousands, %

| Year
Item | 2024 | 2025 | Increased
(Decreased) | Rate of
Variance
(%) |
| --- | --- | --- | --- | --- |
| Operating Revenue | 137,133,894 | 166,084,859 | 28,950,965 | 21 |
| Cost of Goods Sold | 107,504,163 | 128,045,601 | 20,541,438 | 19 |
| Gross Profit | 29,629,731 | 38,039,258 | 8,409,527 | 28 |
| Operating Expenses | 16,695,798 | 21,301,456 | 4,605,658 | 28 |
| Operating Income | 12,933,933 | 16,737,802 | 3,803,869 | 29 |
| Non-operating Income | 2,700,702 | 2,975,365 | 274,663 | 10 |
| Profit Before Income Tax | 15,634,635 | 19,713,167 | 4,078,532 | 26 |
| Income Tax Expense | 3,674,139 | 4,601,373 | 927,234 | 25 |
| Net Profit for the Year | 11,960,496 | 15,111,794 | 3,151,298 | 26 |

5.2.1.1 Analysis of Deviation over 20% for the last two years:

(1) The increase in Operating revenue was mainly due to higher shipment volumes of AI (artificial intelligence) server power supplies, cloud computing products, and power management systems.

(2) The increase in Gross profit, Operating income, Profit before income tax, Income tax and Net profit were mainly due to higher Operating revenue and the improvement in profitability.

(3) The increase in Operating expenses was mainly due to higher selling and research and development expenses.

5.2.1.2 Major impact on financial performance and Future Plan on Financial Performance: not applicable.

5.2.2 Sales Volume Forecast and Related Information

Based on market reports from several research institutions, the Company has made future market size and growth estimates for its major products/services as follows:

Main product	Estimated market size in 2026	Estimated CAGR (%) in upcoming 3 to 5 years
Opto-electronics- LED	approx. US$ 13 bn	~6%
Power supply	approx. US$ 59 bn	~6%

Competitive niches and long-term outlook

The Company is equipped with strong research and development capabilities, enabling us to deliver integrated solutions and system-level designs across key product areas, including cloud computing, optoelectronics, and automotive electronics, to meet the diverse requirements of our customers. The focus remains on developing new products and providing customers with the best services so to distinctly differentiate the company from traditional EMS/ODMs. The Company's efficient, sophisticated management team operates globally and can be relied on to constantly increase the competitive advantages.

5.3 Cash Flow

5.3.1 Cash Flow Analysis for the Current Year

Unit: NT$ thousand

Cash Balance 01/01/2025 (1)	Net Cash Flow from Operating Activities (2)	Cash Outflow (3)	Cash Surplus (Deficit) (1)+(2)-(3)	Remedies of Cash Deficit
				Investment Plans	Financing Plans
100,683,607	14,532,847	34,242,102	80,974,352	None	None

(1) NT$14,532,847 thousand net cash generated by operating activities: mainly from net income and depreciation expenses.
(2) NT$7,394,760 thousand net cash used for investing activities: primarily for the purchase of property, plant and equipment.
(3) NT$23,098,917 thousand net cash used in financing activities: primarily for cash dividend payment and repayment of short-term loans.
(4) Effects of exchange rate changes on the balance of cash and cash equivalents held in foreign currencies: NT$3,748,425 thousand.

5.3.2 Liquidity Analysis and Remedies for Cash Deficit

| Year
Item | 2024 | 2025 | Variance (%) |
| --- | --- | --- | --- |
| Cash Flow Ratio (%) | 11.51 | 13.26 | 15.20 |
| Cash Flow Adequacy Ratio (%) | 118.44 | 99.04 | (16.38) |
| Cash Reinvestment Ratio (%) | 1.48 | 3.10 | 109.46 |

Analysis of financial ratio change:

(1) Cash Flow Ratio raised: Mainly due to the increase of net cash generated by operating activities in 2025 compared to 2024.
(2) Cash Flow Adequacy Ratio declined: Mainly due to the increase of inventory for the past five years in 2025 compared to the same period in 2024.
(3) Cash Reinvestment Ratio raised: Mainly due to the increase of net cash generated by operating activities in 2025 compared to 2024.

5.3.3 Cash Flow Analysis for the Coming Year

Unit: NT$ thousand

Cash Balance 01/01/2026 (1)	Estimated Net Cash Flow from Operating Activities (2)	Estimated Cash Outflow (3)	Estimated Cash Surplus (Deficit) (1)+(2)-(3)	Remedies of Cash Deficit
				Investment Plans	Financing Plans
80,974,352	23,977,000	21,084,000	83,867,352	None	None

(1) NT$23,977,000 thousand estimated net cash flow from operating activities: mainly from net income for the coming year.
(2) NT$11,000,000 thousand estimated net cash used for investing activities: primarily for the purchase of property, plant and equipment.
(3) NT$10,084,000 thousand estimated net cash used in financing activities: primarily for cash dividend payment.

5.4 Major Capital Expenditure Items

5.4.1 Major Capital Expenditure Items and Source of Capital

Project	Actual or Planned Source of Capital	Total Capital	Actual or Expected Capital Expenditure
			2024	2025	2026
Production Equipment and Facilities	operating cash inflows	9,551,620	459,682	1,842,617	7,249,321
R&D Equipment	operating cash inflows	3,166,787	167,011	711,005	2,288,771
IT Equipment and Expansion	operating cash inflows	460,262	103,384	264,079	92,799
Building(Note)	operating cash inflows	10,407,639	2,763,562	6,053,558	1,590,519
Others	operating cash inflows	1,646,559	1,580,145	36,771	29,643
Total		25,232,867	5,073,784	8,908,030	11,251,053

Note : The plants under construction include Phase 2 plant in Kaohsiung Manufacturing Center, and the Kaohsiung LITEON building, and the Vietnam plant, with budgets totaling NT$16,418,185 thousand. As of 2026, NT$14,439,518 thousand has been invested. The remaining NT$1,978,667 thousand is expected to be invested in 2026.

5.4.2 Expected Benefits: Not applicable

5.5 Long-term Investment Policy and Results

Investment Policy in Last year, Main Causes for Profits or Losses, Improvement Plans and the investment Plans for the Coming Year:

LITEON will continue focusing on core businesses growth. The investment will also follow core development strategy of the company and dispose non-core investment on suitable timing.

5.6 Analysis of Risk Management

5.6.1 Risk Management Framework

Finance:

Cash security and interest rate risk prevention

Cash management includes debt and risk control, fund utilization control, and investment size control.

(1) Global cash inventory is performed regularly and any abnormality is followed up. The objective is to increase return on cash, improve profitability, and prevent impairment of assets due to external disasters.
(2) Calculate AR/AP estimates on a monthly basis to facilitate cash planning.
(3) Levels of authorization are established in accordance with the SOPs, and payments are ERP encrypted and then paid via electronic banking services to ensure more secure payments.
(4) Optimal cash and asset structures are reviewed regularly for cash planning purpose and to achieve optimal cash allocation.

Exchange rate risk prevention

(1) The company monitors foreign currency denominated positions, revenue target completion rate, and inventory changes on a daily basis.
(2) Current month YTD and month end foreign exchange gains and losses are calculated on a daily basis.
(3) Financial forecast models are created for foreign exchange positions to enable real-time hedging.
(4) Differences in position forecast and reasons for foreign exchange gains and losses are examined on a monthly basis. The objective is to keep track of the net balance after offsetting of foreign currency denominated assets and liabilities and reduce operational risks arising from foreign exchange volatility.

Property Safety, Product Liability and Risk Prevention Activities

(1) Arrange sufficient and appropriate general insurance to cover the risk properly.
(2) Regular insurance training classes and seminars are held to address the property risk, cargo transportation risk, product liability and the other risk. The objective is to ensure the related departments and factories are fully aware the risk and able to eliminate the risk and reduce potential risk in advance.
(3) Routine Cargo Transportation Risk Survey, Product Liability Risk Survey, Property Safety Survey to the factories.
(4) Execute the Risk Grading to each factory by external risk consultants and follow up the improvement.
(5) Support the targeted factory to build its Business Continuity Management System (BCMS).

Reduction of the credit risks and default payments from customers can be achieved through the following measures

(1) Regularly conduct credit checks on customers and analyze the characteristics of their respective industries to effectively manage credit ratings.
(2) Regularly review customer credit lines and payment terms to minimize exposure and optimize payment periods.
(3) Conduct annual credit reviews to assess customers' business activities and changes in risk conditions, and arrange for credit insurance if necessary.
(4) Monitor shipments against credit lines and closely track the payment schedule of accounts receivable to ensure timely recovery and minimize credit risk from customers.
(5) Organize regular training sessions on credit risks and enhance risk management awareness across all business units.

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Operation Controlling:

Assist the business units carrying out long-term and annual business planning, and establish the internal operating information management system to help the management to effectively control the important operating key factors as well as operating performance risks while properly allocating and controlling resources for optimization of overall operating results according to the company’s development strategy.

Legal:

Legal Department is responsible for assessing legal risks, including: identifying contract risks by reviewing contracts, offering advice to management strategy, providing legal consultation and advice regarding internal systems, compliance, dispute resolution, mergers and acquisitions, intellectual property management, and overseeing production, utilization and disposal of the corporate seals in order to reduce the overall legal risks.

Auditor:

Formulate and implement the annual audit plan based on results of the risk assessments. Assess the effectiveness of the design and execution of internal control and assist the risk management organization and business units in designing risk management based on control processes.

Strategic Investment and M&A:

LITEON aligns its strategic investment focus with the company’s long term development roadmap, industry technology trends, and global macroeconomic dynamic, prioritizing key areas including electronic components, LED lighting systems, matrix LED displays, automotive electronics, smart home solutions, and the Internet of Things. In recent years, the Company has further expanded into cloud computing power solutions, optoelectronic semiconductors, and 5G & AIoT. Over the medium to long term, green data centers, sustainable transportation, and high-performance infrastructure will serve as the LITEON’s primary growth drivers.

LITEON rigorously evaluates the strategic fit and value creation potential of prospective investment and acquisition targets, actively monitors post-investment performance, and integrates these investments into the LITEON’s management framework to mitigate investment risks.

Corporate Brand Value Development Center:

Sculpture LITEON brand and make influence both internally and externally with comprehensive branding development strategy. Through synergy of PR, CSR, Marcom and Design functions, CBVD helps to enhance positive impact of LITEON brand value. It makes LITEON, a tech company, not only has dimensions, but also has warmth and brand recognition, which enables inheritance and transmission of LITEON spirit. Furthermore, it acts as the bridge that connects the company with the media and the general public. Effectively convey thorough information to external parties to ensure timely, accurate, and transparent disclosure in order to avoid operational risks caused by corporate image.

Investor Relations:

With investor relations at the core, the Company has established a long-term communication strategy with the capital markets to systematically convey operational performance and key developments. The Company is committed to ensuring information is disclosed in a timely, accurate, and transparent manner, enabling investors to access material corporate updates in an open, fair, and equitable environment. This approach strengthens market confidence and supports the Company’s long-term value.

Human Resources:

Responsible for human resources management and development; planning human resources policies and implementation; human capital plans development; design for employee development and training; design competitive compensation and package; localization & local talent development; employee’s personal data protection and control in order to reduce the risk of human resources that may cause damage to the company.

5.6.2 Effects of Changes in Interest Rates, Foreign Exchange Rates and Inflation on Corporate Finance, and Future Response Measures

1. Impact of interest rate fluctuation on the company's profit and response measures:

LITEON takes a safe and steady approach to the cash management policy. Apart from a safe level of working capital, LITEON holds idle funds as term deposits in the bank. LITEON, as of December 31, 2025, has NT$ 23 billion, or 11% of the total assets, in bank loans. LITEON, given its commitment to improve its capital structure, boosts medium and long-term working capital, and reduces risks in interest rate changes, assesses regularly funds available in the market and interest rates offered by banks, and selects financing methods with caution. In addition to preferred interest rates, LITEON also undertakes financial derivative transactions for hedging purpose at appropriate times.

2. Impact of foreign exchange volatility on the company's profit and response measures:

A. Sources of exchange gains/losses:

LITEON's revenues, accounts payable, and accounts receivable arising from purchases and sales are predominantly denominated in US Dollars. Foreign currency denominated assets and liabilities offset each other, thereby significantly reducing the foreign exchange volatility risk and creating a natural hedge. Furthermore, LITEON trades derivatives only for the purpose of hedging. Gains and losses generated by foreign exchange rate changes are generally offset by gains and losses in the underlying assets. These hedges reduce the effect of foreign currency exchange rate movements on its assets and liabilities. Net gain (loss) on foreign currency exchange and Net (loss) gain on financial assets at fair value through profit or loss- forward exchange contracts and FX swaps as a percentage of operating revenue and of operating profit as of December 31, 2025 are shown in the table below:

Item\Year	2025
Net gain (loss) on foreign currency exchange and Net (loss) gain on financial assets at fair value through profit or loss-forward exchange contracts and FX swaps (A)	1,615,808
Operating revenue (B)	166,084,859
Percentage of operating revenue (A)/(B)	0.97%
Operating profit (C)	16,737,802
Percentage of operating profit (A)/(C)	9.65%

As shown in the table above, the Net gain (loss) on foreign currency exchange and Net (loss) gain on financial assets at fair value through profit or loss-forward exchange contracts and FX swaps were 0.97% and 9.65% of the operating revenue and the operating profit, respectively, in 2025.

B. Response measures to foreign exchange volatility:

LITEON hedges its foreign currency assets and liabilities by spot, forward, or derivatives as needed according to the prevailing foreign exchange rate trends. LITEON also performs careful and regular assessments in response to volatile foreign exchange rates, adjust and haggle with customers or suppliers as needed to mitigate the foreign exchange volatility risk. Given LITEON does not engage in any foreign exchange transactions unrelated to the core business or for trading purpose, all foreign exchange transactions are undertaken for hedging only.

3. Impact of inflation on the company's profit and response measures:

For year 2026, the Central Bank expects that, global oil prices were projected by international institutions to run below the level of 2025, the aforementioned price-cutting effect from the partial commodity tax exemption/ reduction was expected to continue, and domestic services inflation would also likely to maintain a gradual downtrend. CBC therefore forecasted the CPI and the core CPI annual growth rates to both register 1.63% of 2026. It is expected that inflation will be effectively kept under control in the future and not be able to have much impact on LITEON's profit.

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5.6.3 Policies, Main Causes of Gain or Loss and Future Response Measures with Respect to High-risk, High-leveraged Investments, Governing Loaning of Funds, Making of Endorsement / Guarantees, and Derivatives Transactions

5.6.3.1 The Company did not engage in any high-risk or high-leveraged investments.

5.6.3.2 Policies of Governing Loaning of Funds and Making of Endorsements/Guarantees

(1) Total amount of financing and limit for advance

(a) The total amount of loans available by the Company in favor of all borrowers shall not exceed 40% of the net worth of the Company as stated in the most recent financial statement.

(b) In financing a subsidiary where the Company holds less than 50% of its common shares directly or indirectly, the aggregate amount of loans and the maximum amount permitted to such a single subsidiary shall not exceed 5% of the net worth of the Company as stated in the most recent financial statement. For a subsidiary where the Company holds more than 50% of its common shares directly or indirectly, the aforementioned restriction shall not be applicable; however, the aggregate amount of loans and the maximum amount permitted to such a single subsidiary shall not exceed 40% of the net worth of the Company as stated in the most recent financial statement.

(c) In financing a company or proprietor where the Company has business transactions, unless otherwise provided, the aggregate amount of loans and the maximum amount permitted to such a single company shall not exceed 5% of the Company's net worth as stated in the most recent financial statement, and the maximum amount permitted to such a single company shall not exceed the total amount of business transactions with such a borrower in one year.

(d) In financing between the Company's 100% directly or indirectly owned foreign subsidiaries, or the Company's 100% directly or indirectly owned foreign subsidiaries finance to the Company, the aggregate amount of loans and the maximum amount permitted to such a company will not be subject to the limitation of 40% of the net worth of the lender as stated in the most recent financial statement, but still needs to establish a lending limit.

(2) Endorsements/ Guarantees Amount

Amount of an endorsements/ guarantees is subject to the following limits:

(a) The total amount of endorsements / guarantees rendered by the Company shall not exceed 40% of the net worth shown on the Company's latest financial statements. The grand total amount of endorsements / guarantees rendered by the Company and its subsidiaries to the outside corporations shall not exceed 40% of the net worth shown on the Company's latest financial statements as well. The total amount of the endorsement/guarantee provided by the Company to any individual entity shall not exceed 30% of the Company's net worth.

(b) In case of endorsements / guarantees by the Company to a firm where the Company holds over 50% of the voting power either directly or indirectly, or by the firm directly or indirectly holds more than 50% of the voting shares of the Company or endorsements / guarantees with companies where the Company holds over 90% of the voting power either directly or indirectly, the total amount of individual endorsements / guarantees shall not exceed 10% of the net worth shown through the Company's latest financial statements.

(c) The total amount of individual endorsements/guarantees granted by the Company to a single company or among the Company and companies where the Company holds over 90% of the voting power either directly or indirectly shall not exceed 10% of the net worth shown through the Company's latest term financial statements. Where the Company grants endorsements / guarantees to a corporation where the Company maintains a business relationship, unless otherwise prescribed in other Regulations, the amount of individual endorsements / guarantees shall be confined to the total amount of business transaction accumulated over the past twelve months and shall not exceed 10% of the net worth shown through the Company's latest financial statements.

5.6.3.3 Policies of Governing Loaning of Funds and Making of Endorsements/Guarantees of Subsidiaries

When a subsidiary making loans to and endorsements/guarantees for others, the aggregate amount and the maximum amount permitted to such a single company is subject to the subsidiaries' own regulation.

5.6.3.4 No loss was occurred from making of endorsements/guarantees to others.

LITEON, as of December 31, 2025, no loss was occurred from making of endorsements/guarantees to 100% owned subsidiaries.

Making of endorsements/guarantees to	Relationship	Actual Amount (NTD$K)	Nature	Note
Lite-On Green Energy B.V.	100% owned subsidiaries	345,989	Contractual obligations	No loss occurred

5.6.3.5 Derivatives Transactions

(1) The policies and response measures established by the company's Asset Acquisition or Disposal Procedures shall apply.

(2) Hedges are based on the net position that is the residual difference between assets and liabilities. In addition, foreign exchange hedges take into account positions necessary to facilitate operating activities in the future.

(3) The purpose of derivatives trading should be to ensure the company's operating profits and avoid risks arising from exchange rate or interest rate or asset value volatility. All foreign exchange transactions should be made for hedging purpose only. Non-hedging-related transactions will not be undertaken.

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5.6.4 Summary of LITEON's Major Future R&D Projects and Corresponding Budget

R&D projects and progress

No.	Latest R&D project	Expected time of mass production
1	54V 3200W Titanium High Power Density (96.4W/in3) mCRPS Power Supply for CDU for Liquid Cooling Systems and edge AI server	2026
2	Developed a 165W high-efficiency and low-standby power supply adapter that complies with the world's top energy efficiency regulations (ErP Lot VII / GB20943).	2026
3	High Efficiency Architecture Design and Technology Development of a 2400W High Power Half Bridge LLC Power Supply for AI Edge Computing Platforms	2026
4	Compact Single Fan Design for a High End Desktop 1000W Platinum AC DC Power Supply	2026
5	High-end game controller	2026
6	Super capacitor keyboard of desktop	2026
7	Inductive sensing keyboard of desktop	2026
8	Magnetic keyboard with TMR sensor of desktop	2026
9	Detachable modular keyboard of desktop	2026
10	Capacitive keyboard of laptop	2026
11	Magnetic switch keyboard of laptop	2026
12	Detachable modular keyboard	2026
13	Click anywhere touchpad	2026
14	Electronic Hyper Fast Scroll wheel mouse	2026
15	Lite smart wheel mouse	2026
16	Smart Ai Keyboard	2026
17	3200W (Titanium) Server Power Supply	2026
18	6300W (Titanium) networking power supply	2026
19	72KW High-Power PowerShelf System	2026
20	Develop 23.5kW power supply for shelf application	2026
21	Develop 26kW battery backup unit for shelf application	2026
22	1500kW rack total solution	2026

No.	Latest R&D project	Expected time of mass production
23	OCP 2OU modular RTX PRO 6000 GPU AI server chassis	2026
24	OCP 2OU modular HGX B300 GPU AI server chassis	2026
25	Development of a 1MW+ liquid-to-liquid CDU heat exchanger	2026
26	Proof-of-concept testing for a high performance two phase CDU design	2026
27	Completion of the high power liquid cooling test laboratory	2026
28	Electromagnetic Integration Design Technology	2025
29	Develop multiphysics simulation and analysis techniques for power racks	2026
30	Wireless Signal Module Radiation Interference Analysis Techniques	2027
31	Intelligent security surveillance products	2026
32	Mobility Camera	2026
33	A new generation AIOT products	2026
34	Intelligent door access control system	2026
35	5G O-RAN Next Gen. Small cell	2026
36	5G O-RAN Femto-cell	2026
37	Next-Gen Intelligent Automotive Lighting Platform	2027
38	Next-Generation In-Cabin Monitoring Camera Module	2027
39	High-Performance photocouplers, photo relays and digital isolators for EV and green energy	2026
40	Next-generation multi-zone optical sensor	2026
41	Automotive Matrix LED for ADB	2026
42	MIP/Micro LED matrix display	2027
43	Quick Lite Version Smart Network Controller	2026
44	Internal Version Smart Network Controller	2026
45	AI Roadway Data Analysis and Vehicle-Person Positioning Device	2026

144

No.	Latest R&D project	Expected time of mass production
46	Americas Small-Size Floodlight	2026
47	Americas Landscape Garden Luminaire	2026
48	Americas High-Mast Luminaire	2026
49	Microgrid with Charging Station Intelligent Management System	2026
50	80A AC charging pile for US	2026
51	48A AC Charging Pile (Economy Version)	2026
52	80kW DC Charging Station	2026
53	Indoor Wi-Fi 7 Access Point with Cybersecurity	2026
54	Indoor Switch 17 port Muli-GG with Cybersecurity	2026
55	Enterprise Access Switch 24/48 port Muli-GG	2026

In 2026, due to business needs, our company will keep investing in R&D projects. We estimate that R&D expenses will account for approximately $5\%$ of total revenue.

5.6.5 Effects of and Response to Changes in Policies and Regulations Relating to Corporate Finance and Sales:

With respect to the changes in export control laws and regulations, the Company has evaluated the daily operation of each business unit and established the relevant procedure. We will continue to monitor regulatory changes to ensure that our business activities are in compliance with relevant policies and laws.

5.6.6 Effects of and Response to Changes in Technology (including Information Security Risk) and the Industry Relating to Corporate Finance and Sales

The rapid advancement of global technologies, ongoing shifts in industry structures, and a rising degree of digitalization have introduced increasing challenges and risks to product competitiveness, business operations, and information security management.

To effectively manage and mitigate these risks, the Company continues to focus on its high-value core businesses, deepening the development of key technologies and strengthening product deployment. Through structured strategic reviews and a performance management framework, we consistently optimize our product portfolio and enhance operational efficiency. In parallel, we are building a resilient and sustainable supply chain by reinforcing supplier management and risk controls, thereby improving operational and financial stability.

In the area of information security, the Company has fully implemented the ISO 27001 Information Security Management System and established a comprehensive personal data protection mechanism. We conduct regular cybersecurity risk assessments and system vulnerability reviews. Furthermore, we have fortified our manufacturing environments in accordance with international industrial control security standards and obtained IEC 62443 certification to ensure business continuity and reduce the risk of significant financial impact.

5.6.7 The Impact of Changes in Corporate Image on Corporate Risk Management, and the Company's Response Measures

The Company places a great emphasis on maintaining its reputation. It takes an active approach to protecting its image and supporting charitable causes. The Company has an emergency response team that handles any accidents with a potential impact on the Company's image. Emergency response plans encompass situation analysis, impact assessment, solutions to different situations, and adequate early warning measures that facilitate corporate crisis management and prevention.

5.6.8 Expected Benefits, Potential Risks, and Mitigation Measures of the Merger and Acquisition

The selection of our investment and acquisition targets is in line with LITEON's core strategic priorities. Such alignment across products, markets, channels, and customer bases enables LITEON to effectively manage risks associated with investment performance, organization integration, and financial exposure.

5.6.9 Expected Benefits from, Risks Relating to and Response to Factory Expansion Plans

The Kaohsiung Phase 2 Plant, currently under construction, will become Taiwan's production base for cloud computing, advanced power management system, EV charging pylons, and 5G network communication products in the future. In addition, an employee dormitory building and an R&D office building are currently under construction in Kaohsiung to provide employee accommodation and R&D working space. At the Dallas factory in the United States, LITEON will expand production capacity to provide local manufacturing for data center power management systems and EV

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charging pylons in North America and the advantages of being close to supply to customers. In Vietnam, LITEON, besides the existing Hai Phong factory, start to construct new plant in Quang Ninh, which is intended to work in collaboration with the Hai Phong factory to create a production base for a complete range of services.

During construction, there will be risks of rising material costs and labor shortages. In response to these risks, the approach will involve a total price contracting method and pre-payment mechanisms to lock in the price. The contractor shall bear the risks of any material price increases. Large well-reputed contractors will be selected to increase risk tolerance and better guarantee of adequate worker and material allocation. Regarding labor shortage risks, the construction involves a modular design and some prefabricated parts. Components of the plant are semifinished beforehand and then assembled on site to reduce the need for on-site labor.

5.6.10 Risks Relating to and Response to Excessive Supplier and Customer Concentration

LITEON has established the Supplier Management Guidelines for internal use. The guidelines specify buying from multiple suppliers to reduce the concentration risk in raw material supply procurement and reviewing supplier qualifications regularly to ensure a steady supply of raw materials.

In 2025, one customer accounted for over 10% of the sales of the Company, and none of the single supplier accounted for over 10% of the purchases. There is no potential concentration risk in procurement or sales.

5.6.11 Effects of, Risks Relating to and Response to Large Share Transfers or Changes in Shareholdings by Directors, Supervisors, or Shareholders with Shareholdings of over 10%: None

5.6.12 Effects of, Risks Relating to and Response to the Changes in Management Rights: None

5.6.13 Litigation or Non-litigation Matters: None.

LITEON

LITE-ON TECHNOLOGY CORP.

5.6.14 Other significant risks and response measures:

The effects of global technological development, political-economic changes and extreme climate are continuing to increase. LITEON has incorporated the identification and management of long-term emerging risks into our corporate risk management program. Emerging risks have also been clearly defined and presented to the LITEON management subcommittee for review before being submitted to the Board. An assessment of likelihood and impact was conducted for risk categories in the environmental, social, economic, technological and geopolitical aspects in 2025. Key emerging risks identified included (1) AI information security risk and (2) AI Demand and Rapid Market Changes.

Risk Category	Risk Item	Operational Threats	Relief Measure
Technology Risk	AI information security risk	LITEON has continued to advance its digital transformation in recent years to enhance operational efficiency and overall competitiveness. However, the increasing level of digitalization has also amplified cybersecurity risks, including a higher likelihood of cyberattacks, phishing, ransomware incidents, and leakage of sensitive information. Since 2023, generative AI technologies have rapidly proliferated, making it increasingly difficult to distinguish the authenticity and accuracy of information and images. This trend heightens the risks of misjudgment, communication errors, and operational disruptions. Although LITE-ON actively promotes the adoption of AI tools through internal training to improve employee productivity, the reliability and accuracy of generative AI output remain limited. As a result, misleading content may occur, potentially causing process deviations or incorrect business decisions.Furthermore, if employees inadvertently input confidential company information into generative AI tools, it could lead to data leaks, privacy violations, intellectual property loss, and compliance risks—ultimately posing significant impacts on the company's operations and brand reputation. Therefore, data protection and usage governance have become top priorities in managing AI-related risks for LITEON in 2025.	1. Implementation of NISTIR 8286 to Strengthen Cybersecurity Risk Management (since 2022): Implement the U.S. NISTIR 8286 framework to strengthen cybersecurity risk identification and management processes, enhance employees' awareness of cybersecurity threats, and establish continuous improvement action plans to mitigate potential risks arising from digitalization.2. Development of Internal Generative AI Tools to Reduce Data Leakage Risks (2023): To minimize the risk of sensitive information being entered into external AI platforms, the IT department integrated Microsoft Teams in 2023 to develop "LITEON ChatGPT," an internally hosted generative AI tool for employees. At the same time, the use of the original OpenAI ChatGPT was prohibited to ensure that confidential company information would not be transmitted outside the organization.3. Restriction of Unauthorized Generative AI Tools and Standardization on M365 Copilot (since 2024): Starting in 2024, the company has enforced strict restrictions on the use of unauthorized generative AI tools on corporate devices, including AI-related browser extensions. All AI usage scenarios have been standardized to Microsoft 365 Copilot to ensure that data processing remains within a trusted and secure enterprise environment, thereby reducing the risks of cybersecurity incidents and information leakage.
Operational Risk	AI Demand and Rapid Market Changes	The AI market is expanding rapidly and placing short-term pressure on manufacturing capacity and supply chain resilience. Furthermore, with frequent technology iterations and specification updates, product life cycles are becoming shorter. This trend demands greater agility and accuracy in capacity planning and capital investments, while also intensifying market competition.	Strengthen organizational capabilities and supply chain resilience. Develop AI-related expertise and improve overall efficiency through data-driven governance and operational optimization.

5.7 Other Important Issues: None

6. Special Disclosure

6.1 Summary of Affiliated Companies

The information specified in the required items has been disclosed on the Market Observation Post System of the Taiwan Stock Exchange. Please refer to the section for the three reports of affiliated enterprises. (https://mopsov.twse.com.tw/mops/web/t57sb01_q10).

6.2 Private Placement of Company Shares: None

6.3 Other Supplementary Information: None

7. Other Significant Events Affecting Shareholders' Equity or Stock Price: None

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Other Significant Events Affecting Shareholders' Equity or Stock Price

Standalone Financial Statements

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Chairman: Tom Soong

AI assistant

LTC — Annual Report 2025

51997_rns_2026-04-30_9bdbc90f-2307-439d-acdd-cc9ac9cb8c50.pdf

2025 Annual Report

CONTACT INFORMATION

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06

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Improving Profitability as the Top Priority

Growth-driven Businesses Accounting for Over 60%

Optimization of Operating Model

New Products and Technology Development

Environmental Commitments: 555 Carbon Reduction Action

Transparency and Integrity: A Model Enterprise

Sustainable Talent, LITEON THE WAY

Social Engagement: Initiatives for Mutual Benefit

Year One: A New Chapter and Vision

2. Corporate Governance Report

2.1 Board Members and Management Team

2.1.1 Information Regarding Board Members

2.1.1.1 Board Members

2.1.1.2 Major Shareholders of the Institutional Shareholders

2.1.1.3 Major Shareholders of the Company's major Institutional Shareholders

2.1.1.5 Diversity and Independence of the Board of Directors

Board Diversity

Board Independence

2.2 Remuneration Paid during The Most Recent Fiscal Year to Directors and Management Team

2.1.1 Remuneration of Directors, Independent Directors and Management Team

2.2.1.2 Remuneration of Supervisors

2.2.1.4 Employees' Profit Sharing Bonus Paid to Management Team

2.2.1.5 The Individual Remuneration Paid to each of its Top Five Management Personnel (listed individually by name and payment type): Not Applicable.

2.2.2 Analysis Results for the Ratio of Total Remuneration to the Net Income

2.3 Implementation of Corporate Governance

2.3.1 Board of Directors

2.3.1.1 Board Meetings Attendance

2.3.1.2 Annotations:

(1) Securities and Exchange Act §14-3 resolutions, and others

(2) The Board Meeting Attendance Status of Independent Director

(3) Recusals of Directors due to conflicts of interests: Three occasions

(4) Implementation of the performance evaluation of the board of directors and functional committees:

2.3.2 The Operation of the Audit Committee

2.3.2.1 Audit Committee Meeting Status

2.3.2.2 Annotations:

(1) Resolutions related to Securities and Exchange Act §14-5, and others

(2) Recusals of Independent Directors due to conflicts of interests

(3) The communications between the independent directors, the Chief Audit Officer and the certified public accountants:

2.3.2.3 Attendance of Supervisors at Board Meetings:

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

2.3.4 Functional Committees

2.3.4.1 Compensation Committee

2.3.4.1.1 Compensation Committee Members' Professional Qualifications and Independent Analysis

2.3.4.1.2 Compensation Committee Meeting Status

Annotations:

2.3.4.2 Nomination Committee

1. Information on the operation of the Nomination Committee

2. Main Points of Discussion by the Nomination Committee up to February 28, 2026

2.3.4.3 Growth Strategy Committee

2.3.4.4 Corporate Sustainability Committee

1. Corporate Sustainability Committee meeting status

2. Summary of the Corporate Sustainability Committee meetings for the most recent year (2025 to 2026/2/28)

2.3.5 The State of the Company's Promotion of Sustainable Development

2.3.5.1 The State of the Company's Promotion of Sustainable Development, Any Variance from the Sustainable Development Best Practice

Corporate Governance Report

2.3.5.2 Climate-Related Information of TWSE/TPEx Listed Company

1-1 Greenhouse Gas Inventory and Assurance Status in Recent Two-year

1-1-1 Greenhouse Gas Inventory Information

1-1-2 Greenhouse Gas Assurance Information

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

2.3.7 Other Important Information Regarding Corporate Governance

2.3.7.1 LITEON Technology Corporation Executive Succession Plan

I. Executive development plan:

II. Executive succession plan:

2.3.7.2 Other Important Information

2.3.8 Internal Control System Execution Status

2.3.8.1 Statement of Internal Control System

LITE-ON Technology Corporation

Statement of Internal Control System

2.3.8.2 If CPA was engaged to conduct a special audit of internal control system, provide its audit report: None.

2.3.9 Major Resolutions of Shareholders' Meeting and Board Meetings

2.3.9.1 Major Resolutions of Shareholders' Meeting and Implementation Status

LTC Annual Report 2025