Stock Code: 4155

OK Biotech Co., Ltd.

Annual Report 2025

Printed on April 30, 2026

Taiwan Stock Exchange Market Observation Post System: http://mops.twse.com.tw
Biotech Company Limited website: http://www.okbiotech.com

Name, Title, Contact Phone Number, and Email Address of Company Spokesperson or Authorized Spokesperson

Item	Spokesperson	Authorized Spokesperson
Name	Hou, Chi-Cheng	Liu, Yu-Tzu
Title	Financial Department Assistant Manager	Special Assistant to the General Manager
Phone Number	(03)516-0258	(03)516-0258
Email	[email protected]	[email protected]

Company Address & Phone Number

Company Address: No. 91, Sec. 2, Gongdao 5th Rd., Hsinchu City

Phone Number: (03)516-0258

The Name, Address, Website and Telephone Number of the Stock Transfer Agency

Name: Stock Affairs Agency Department
Phone Number: (02)2361-1300
Fubon Securities Co., Ltd.
Website: https://www.fubon.com/
Address: 11F, No. 17, Hsuchang St., Zhongzheng District, Taipei City 100

Name of Auditor Who Signed the Financial Report for 2024, Name of the Accounting Firm, Address, Website and Phone Number.

Accountants: Ms. Tsai-Yen Chiang,
Mr. Jiang Cheng-Han
Phone Number: (02)2729-6666
Firm Name: Pricewaterhouse Coopers Taiwan
Website: http://www.pwc.com/tw
Address: 27F, No. 333, Sec. 1, Keelung Rd., Taipei City

The Name of the Trading Place Where the Overseas Securities Are Listed and Traded and The Method for Inquiring Information About the Overseas Securities: None.
The website of the Company: http://www.okbiotech.com

I. Reports for Shareholder

2025 Annual Operating Results ... 2
Summary of 2026 Business Plan ... 3
Future Company Development Strategy ... 4
Impact of External Competitive, Regulatory, and Macroeconomic Environment ... 4

II. Corporate Governance Report

Information on Directors, General Managers, Deputy General Managers, Assistant Managers, Heads of Departments and Branches ... 5
Remuneration for Directors, General Manager, and Vice General Manager in 2025 ... 15
Company Governance-operating Circumstances ... 20
Information on the Certified Public Accountant's Compensation ... 59
Information on Change of Auditor ... 59
Information Regarding Company's Chairman, General Manager, and Managers Responsible for Finance or Accounting Affairs Who Have Served in the 2025 in the Auditor's Firm or the Subsidiaries ... 60
Transfer of Shareholding and Changes in Equity Pledges by Directors, Supervisors, Managers, and Shareholders Holding Over 10% of the Shares During the 2025 and as of the Date of this Annual Report ... 60
Information on the Top Ten Shareholders Who Hold a Percentage of Shares, and Their Relationships With Each Other Or With Spouses, Or Relatives Within the Second Degree of Kinship ... 62
Shares Held by the Company, its Directors, Supervisors, Managers, and Businesses Controlled Directly or Indirectly by the Company, in the Same Investee Company, and the Aggregate Ownership Percentage Calculated on a Consolidated Basis ... 63

III. Fundraising Situation

Capital and Share ... 64
Corporate Bond Transactions ... 69
Preferred Shares ... 70
Issuance of Oversea Depositary Shares ... 70
Status of Employee Stock Option Plan ... 70
The Following Items Should Be Recorded Regarding the Handling of Restricted Stock Awards ... 71
Status of New Share Issuance in Connection with Mergers and Acquisitions ... 73
Funding Plans and Implementation ... 73

IV. Operations Overview

Main Business Activities... 74
Market and Sales Overview... 86
Employee Information for 2025 and 2024 and up to the Date of Printing of this Annual Report... 97
Environmental Protection Expenditure Information... 98
Labor Relations... 98
Cyber Security Management... 100
Important Contracts... 101

V. Review and Analysis of Financial Status, Financial Performance, and Risk Factors

Financial Status... 102
Financial Performance... 103
Cash Flow... 104
The Effect upon Financial Operations of any Major Capital Expenditures During 2025... 105
Recent Year Investment Policy, Major Reasons for Profit or Loss, Improvement Plans, and Future Year Investment Plans... 105
Analysis and Evaluation of Risk Factors for 2025 and Up to the Date of Annual Report Printing... 106
Other Significant Matters... 110

VI. Special Items to Note

Related Information of Subsidiaries... 111
Private Placement Securities in 2025 and as of the Date of this Annual Report... 113
Status of Subsidiaries Holding or Disposing of Company Stock in 2025 and up to the Printing Date of the Annual Report... 113
Other Necessary Supplement... 113

Dear Shareholders,

Firstly, I would like to express my gratitude to all of you for your support and guidance to OK Biotech Co., Ltd. over the years.

For the fiscal year 2025, the Company's consolidated revenue was NT$1,556,295 thousand, an decrease of 6.81% compared to the previous fiscal year's revenue of NT$1,670,033 thousand. Net income after tax was NT$97,130 thousand, with earnings per share of NT$0.58. Biotech will continue to uphold its mission of maximizing shareholder value and taking care of employees, while pursuing the interests of customers, suppliers, and the company, and striving to develop products, expand markets, reduce costs, and increase profits to gain a competitive advantage.

I, together with all the management executives of the company, will maintain a positive and honest work attitude, fully committed to realizing our vision of becoming the "most competitive blood glucose monitoring device enterprise," and continuously improving the company's operational performance. We believe that our business goals will continue to grow with the strong support of our shareholders. Once again, I would like to thank all our shareholders for your unwavering support.

Wishing you all good health and every success.

Sincerely,

Chairman

Lai, Chia-De

I. Reports for Shareholder

2025 Annual Operating Results

(1) Results of Business Plan Implementation

(2) B
Unit: NT$ thousand

u Items	2025	2024	Increase (decrease) percentage
Operating income	$1,556,295	$1,670,033	(6.81%)
Operating costs	(1,127,044)	(1,394,378)	(19.17%)
Net operating profit	429,251	281,948	52.24%
Operating expenses	(321,357)	(224,735)	42.99%
Operating Profit	107,894	57,213	88.58%
Net non-operating income and expenses	(4,027)	69,897	(105.76%)
Net profit before tax	103,867	127,110	(18.29%)
Net profit after tax	97,130	106,319	(8.64%)
Other comprehensive income (loss)	944	3,908	(75.84%)
Total comprehensive benefits	98,074	110,227	(11.03%)

Contention status: The Company has not disclosed financial forecast for 2024. Therefore no budget implementation status is required to be disclosed.

(3) Analysis of Financial Balance and Profitability

Unit: NT$ thousand

Analysis Item			2025	2024
Financial Balance	Operating revenue		1,556,295	1,670,033
	Operating cost		(1,127,044)	(1,394,378)
	Net profit after tax		97,130	106,319
Profitability	Return on shareholders' equity (%)		3.77%	4.14%
	Ratio to paid-in capital (%)	Operating profit	7.45%	3.89%
		Net profit before tax	7.17%	8.64%
	Net profit rate (%)		6.24%	6.37%
	Earnings per share (in NT$)		0.58	0.66

(4) Statement of Research and Development

Details of Research and Development Expenditures in the Last Two Years

Unit: NT$ thousand

	2025	2024
R&D expenses	$59,042	$57,927
Operating revenue	1,556,295	1,670,033
Proportion (%)	3.79	3.47

2. Summary of 2026 Business Plan

(1) Management Policy

① Continuously strive for OEM/ODM orders from international major corporations to build a solid customer base.

② Utilize our own resources to consolidate and develop niche markets, grasp potential distributors and dealers, successfully implement strategic layouts, and establish a market position

③ Actively expand into the Brazilian market to further expand into the Central and South American markets.

④ Actively cultivating the markets of the United States and Canada.

⑤ Expand local production customers to deepen cooperation with our company and increase market share of our products.

⑥ Launch our own brand in appropriate regions to increase our company's visibility and brand exposure.

⑦ Develop a continuous glucose monitoring (CGM) system to strengthen product depth.

⑧ Expand product depth by enhancing the additional functions of existing products and continuously developing new models to extend the product line to high-end products; expand product breadth by developing a full range of home-related inspection instruments to increase product diversity.

⑨ Strengthen supply chain management and improve process automation to enhance production capacity and stabilize product quality

⑩ Actively developing the brand and (physical) distribution channels.

(2) Expected Sales Quantity and Basis

The expected sales volume of the Company is based on the sales performance in 2025, taking into account the industry environment, market demand, the Company's production capacity, and the expected future demand from customers. The Company expects to sell approximately 4,000 thousand blood glucose meters and 2,200,000 thousand blood glucose test strips in 2026.

(3) Important Production and Sales Policies

① Strengthen the management of the supply chain and customer relationships from suppliers to distributors to maintain a solid and good supply-demand relationship.

② Establish a mechanism to adjust and expand production capacity at any time to meet customer delivery requirements in response to business development.

③ Enhance the service network function with overseas distributors to improve customer service quality.

④ Continuously innovate to increase product added value and enhance market positioning based on product development trends and market demand.

3. Future Company Development Strategy

(1) Establish a global logistics center: Establish logistics warehouses or branches in Europe and the Americas to provide timely and efficient services.

(2) Establish strategic alliances with international major firms to expand market share.

(3) Vertical integration from upstream to downstream: Vertically integrate with important raw material suppliers/key customers to maintain stable supply relationships.

4. Impact of External Competitive, Regulatory, and Macroeconomic Environment

(1) External competitive environment

Roche, Johnson & Johnson, Bayer, and Abbott are the four major suppliers of blood glucose meters and test strips worldwide, with a combined global market share of about 82%. The global market size for blood glucose testing products is about USD 11 billion, with a high growth rate of over 10% annually, which still attracts new entrants into the market. Taiwanese companies mainly rely on ODM customers for revenue, supplemented by a business model that includes promoting their own brands. Due to the diverse characteristics of the global market, Taiwanese companies have utilized their strengths in design, manufacturing, and service logistics to strengthen their product development foundations. They have also developed channel customers and niche markets, sought cooperation with large companies, and developed innovative business models to continue to increase their revenue and enhance global competitiveness.

(2) Regulatory environment

The Company's products and quality systems comply with relevant regulatory requirements and have obtained valid certifications. Compliance with regulatory requirements has a positive effect on the Company's operations.

(3) Macroeconomic environment

Affected by the expected global inflation, the price of raw materials has risen, and the challenge of controlling production costs has increased. As the market size is mainly based on exports, the increasing volatility of the US dollar exchange rate has increased the exchange rate risk. The Company's management will continue to closely monitor the macroeconomic trends and information and take timely measures to reduce the impact on operations.

II. Corporate Governance Report

Information on Directors, General Managers, Deputy General Managers, Assistant Managers, Heads of Departments and Branches

(1) Director

① Director Information

April 7, 2026

Title	Nationality	Name	Gender Age	Date Elected	Tenure	Date First Elected	Shares Held When Elected		Shares Currently Held		Shares Held under Another Individual		Shares Held under Another Individual		Main Experience and Educational Background	Selected Current Positions at OK Biotech and Other Companies	Other Executives, Directors, or Supervisors with Spousal or within Second-Degree Kinship Relationships.			Note
							Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)			Title	Name	Relation
Chairman	R.O.C.	Shang-Shun Development Co., Ltd.	-	2024.07.25	3 years	2018.05.30	2,061,044	1.42%	2,061,044	1.42%	0	0.00%	0	0.00%	N/A	None.	None.	None.	None.	-
	R.O.C.	Representative: Lui, Chia-De (Note 2)	Male 61-70				136,867	0.09%	269,936	0.18%	0	0.00%	5,374,465 (Note 1)	3.71%	Graduated from the Master's Program in Industrial Engineering Management, NYCU, OK Biotech Co. Ltd./Chairman and General Manager	General Manager and Chief Sustainability Officer of the Company Shang Shun Development Co., Ltd./Chairman Hao Want Co., Ltd./Chairman Pu Yuan Biotech Co., Ltd./Chairman Aeon Diagnostic Technology Corp./Chairman Karma Medical Products Co., Ltd./Director, OK BIOTECH PTE. LTD./Chairman	None.	None.	None.	-
Vice Chairman	R.O.C.	Liu, Yu-Tzu	Female 31-40	2024.07.25	3 years	2021.08.04	735,462	0.50%	855,195	0.59%	0	0.00%	0	0.00%	Graduated from NTNU / Department of Civic Education and Activity Leadership EVA Airflight crew	OK Biotech Co. Ltd. / Vice Chairman and Special Assistant to General Manager	None.	None.	None.	-
Director	R.O.C.	He Chun Investment Co., Ltd.	-	2024.07.25	3 years	2018.05.30	6,852,373	4.73%	6,852,373	4.73%	0	0.00%	0	0.00%	N/A	None.	None.	None.	None.	-
	R.O.C.	Representative: Chen, Chin-Piao	Male 61-70				0	0.00%	0	0.00%	1,664,228	1.15%	0	0.00%	Graduated from Dayuan Junior High School, Chiao In Technology Co., Ltd./General Manager UBEVEICE Corp./Supervisor	Chiao In Technology Co., Ltd./General Manager UBEVEICE Corp./Supervisor	None.	None.	None.	-

Title	Nationality	Name	Gender Age	Date Elected	Tenure	Date First Elected	Shares Held When Elected	Shares Currently Held	Shares Currently Held by Spouse & Minors	Shares Held under Another Individual	Main Experience and Educational Background	Selected Current Positions at OK Biotech and Other Companies	Other Executives, Directors, or Supervisors with Spousal or within Second-Degree Kinship Relationships.	Note
Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Title	Name	Relation
Director	R.O.C.	Ting-Fa Investment Co., Ltd.	-	2024. 07.25	3 years	2024. 07.25	6,389,720	4.41%	6,389,720	4.41%	0	0.00%	0	0.00%
R.O.C.	Representative : Wang, Zhen-Gang	Male 31-40	0	0.00%	145,187	0.10%	0	0.00%	0	0.00%	Auckland University of Technology Business Studies Graduated	-	None.	None.
Director	R.O.C.	Bei Xi Co., Ltd.	-	2024. 07.25	3 years	2024. 07.25	1,958,000	1.35%	1,958,000	1.35%	0	0.00%	0	0.00%
R.O.C.	Representative Hsu, Chin-Yuan	Male 41-50	0	0.00%	0	0.00%	0	0.00%	0	0.00%	Graduated from Chinese Culture University/ Information Management, Bei Xi Co., Ltd./ Responsible Person	Bei Xi Co., Ltd./ Responsible Person
Acula Technology Corporation/ Director	None.	None.	None.	-
Director	R.O.C.	Lan, Shi-Wan	Male 61-70	2024. 07.25	3 years	2024. 07.25	818,000	0.56%	818,000	0.56%	0	0.00%	0	0.00%
Acula Technology Corporation/ Director	None.	None.	None.	-
Director	R.O.C.	Hou, Chi-Cheng	Male 51-60	2024. 07.25	3 years	2024. 07.25	6,466	0.00%	19,617	0.01%	0	0.00%	0	0.00%
Assistant Manager and Corporate Governance Manager	OK Biotech Co. Ltd./ Financial Department
Assistant Manager and Corporate Governance Manager
Azon Diagnostic Technology Corp./ Director
Pu Yuan Biotech Co., Ltd./ Director	None.	None.	None.	-
Independent Director	R.O.C.	Lin, Shih-Yi	Female 41-50	2024. 07.25	3 years	2018. 05.30	0	0.00%	0	0.00%	0	0.00%	0	0.00%
Chief Manager NTHU/ Patent Layout Program
Assistant of Institute of Photonics Technologies NYCU/ Legal Affairs Office
Chief Manager of Industry-Academia Operation Center
Passed the National Lawyer's College Entrance Examination	Member of the Compensation Committee and Audit Committee, Convenor of the Nomination Committee and Member of the Sustainability Committee of the Company	None.	None.	None.	-

Title	Nationality	Name	Gender Age	Date Elected	Tenure	Date First Elected	Shares Held When Elected		Shares Currently Held		Shares Held under Another Individual		Shares Held under Another Individual		Main Experience and Educational Background	Selected Current Positions at OK Biotech and Other Companies	Other Executives, Directors, or Supervisors with Spousal or within Second-Degree Kinship Relationships.			Note
							Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)	Shares	Shareholding Percentage (Note 4)			Title	Name	Relation
Independent Director	R.O.C.	Ho, Li-Fen	Female 61-70	2024. 07.25	3 years	2021. 08.04	53,663	0.04%	53,663	0.04%	7,430	0.01%	0	0.00%	Graduated from Department of Banking and Insurance, Feng Chia University Miele Automation Co., Ltd./Director of Audit Office	Member of the Compensation Committee and Audit Committee, Convenor of the Nomination Committee and Member of the Sustainability Committee of the Company	None.	None.	None.	-
Independent Director	R.O.C.	Chen, Ku-Chuan	Male 61-70	2024. 07.25	3 years	2021. 08.04	0	0.00%	0	0.00%	0	0.00%	0	0.00%	Graduated from Department of Radiology, Yuanpei University of Medical Technology Medical College Consortium of WelGong Memorial Hospital /Clinical Laboratory Department	Member of the Compensation Committee and Audit Committee, Convenor of the Nomination Committee and Member of the Sustainability Committee of the Company Wan Long Paper MFG. Co., Ltd./ production and sales manager	None.	None.	None.	-
Independent Director	R.O.C.	Lu, Ching-Chun	Female 51-60	2024. 07.25	3 years	2023. 06.12	0	0.00%	0	0.00%	0	0.00%	0	0.00%	Graduated in Management from NYCU. Graduated in Accounting from Chang Yuan Christian University. PwC Taiwan / assistant manager of audit department and tax department.	Member of the Compensation Committee and Audit Committee, Convenor of the Nomination Committee and Member of the Sustainability Committee of the Company Ezone CPAs Firm / Director / CPA. Ezone Enterprise Management Consultants Ltd. / person in charge. Grade Upon Technology Corp. / legal director. Hanjing Co. Ltd. / representative.	None.	None.	None.	-

Note 1: Mr. Lai Jiade's investment company, Hao Want Co. Ltd., holds 3,313,421 shares, and Shang Shun Development Co., Ltd. holds 2,061,044 shares, totaling 5,374,465 shares.
Note 2: The General Manager and Chairman of the Board of Directors of the Company are the same person, primarily aimed at enhancing the operational performance of the group, improving shareholder interests, and achieving the vision of sustainable business operations. To strengthen the operation of corporate governance, the Company's eighth Board of Directors comprises 11 seats (7 Directors and 4 Independent Directors), with no majority of Directors concurrently serving as employees or managers, to maintain objectivity and supervisory power.
Note 3: At the extraordinary shareholders' meeting on July 25, 2024, 11 directors (including 4 independent directors) were fully re-elected.
Note 4: The shareholding percentage was calculated based on the total number of issued shares of 144,814,164 shares as of the record date of the shareholders' meeting on April 7, 2026 (including 120,000 shares of restricted stock awards that had been withdrawn for cancellation but had not yet been registered for change as of the printing date).

② Major shareholders who belong to the director of other corporate shareholders

A. Major shareholders of corporate shareholders

April 7, 2026

Name	Ownership Percentage (Note 2)
Shang-Shun Development Co., Ltd.	Lai Chia-De (98.82%), Wu Shu-Man (0.40%), Lin Tzu-Cheng (0.39%), Lai Ching-I (0.39%)
He Chun Investment Co., Ltd.	Sheng Yang Investment Co., Ltd. (35.39%), Great Concord Investment Ltd. (29.24%), Chen Wen Cheng (9.67%), Liao Shu-Lan (7.03%), Chen Chiu-Yun (3.75%), Chang Liao Shu-Chu (3.51%), Liao Cheng-I (2.91%), Yang Chih-Chiang (2.63%), Huang Cheng-Fu (1.96%), Peng Ching-Chun (1.54%)
Ting-Fa Investment Co., Ltd.	Wang Shao-I (37.92%), Wang Shao-Chun (5.84%), Wang, Zhen-Gang (56.24%)
Bei Xi Co., Ltd.	Hsu, Chin-Yuan (39.42%), Hsu, Ching-Hao (32.65%), Hsu, Jui-Yun (27.93%)

Note 1: If the director or supervisor is a representative of a corporate shareholder, fill in the name of the corporate shareholder.
Note 2: Fill in the name of the major shareholders of the corporate shareholders (top ten in terms of shareholding percentage) and their shareholding percentages. If the major shareholder is a corporation, fill in Table 2 below.

B. Major shareholders of the corporate shareholders abovementioned:

April 7, 2026

Name	Ownership Percentage
Sheng Yang Investment Co., Ltd.	Chen Liao Shu-Ying (34.71%), Chen Po-Yang (6.29%), Chen Wei-Chieh (6.93%), Chen Chia-Jung (6.29%), Chen Ching-Piao (34.71%), Tu Wei-Chen (6.93%), Chen Chia-Chien (4.14%)
Great Concord Investment Ltd.	Huang Yuan-Tung (29.28%), Huang Kuo-Feng (15.00%), Huang Jui-Lien (15.00%), Kan Mei-Ying (25.72%), Huang Kuo-Hao (15.00%)

③ Disclosure of Directors' Professional Qualifications and Independent Information:

| Qualifications
Name | Professional Qualifications and Experiences | Independent Information | Number of Independent Directors
Concurrently Serving as Other Public Offering Companies |
| --- | --- | --- | --- |
| Shang-Shun Development Co., Ltd.
Representative: Lai, Chia-De | 1. Currently holding the positions of Chairman and General Manager of OK Biotech Co. Ltd., Chairman of Shang Shun Development Co., Ltd., Chairman of Hao Want Co., Ltd., Chairman of Puyuan Biotech Co., Ltd., Chairman of Aeon Diagnostic Technology Corp., Director of Karma Medical Products Co., Ltd., and Chairman of OK Biotech Pte. Ltd., among other positions.
2. Experience in operational judgment, business management, crisis management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Mr. Lai, Chia-De. | N/A | 0 |
| Liu, Yu-Tzu | 1. Currently holding the positions of Vice Chairman and Special Assistant to General Manager of OK Biotech Co. Ltd., among other positions.
2. Experience in operational judgment, business management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Mr. Lai, Chia-De. | N/A | 0 |
| He-Qun Investment Co., Ltd.
Representative: Chen, Chin-Piao | 1. Currently holding the positions of General Manager of Chiao In Technology Co., Ltd. and Supervisor of UBDEVICE Corp, among other positions.
2. Experience in operational judgment, business management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Mr Chen, Chin-Piao. | N/A | 0 |

Name	Qualifications
	Professional Qualifications and Experiences	Independent Information
Ting-Fa Investment Co., Ltd.
Representative: Wang, Zhen-Gang	1. Currently with experience in operational judgment, business management, industry knowledge, international market insights and decision making.
2. There are no circumstances under Article 30 of the Company Act applicable to Mr. Wang, Zhen-Gang.	N/A	0
Bei Xi Co., Ltd.
Representative: Xu, Jin-Yuan	1. Currently holding the positions of Responsible Person of Bei Xi Co., Ltd. and Director of Acula Technology Corporation, among other positions.
2. Experience in operational judgment, business management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Mr. Xu, Jin-Yuan.	N/A	0
Lan, Shi-Wan	1. Currently holding the positions of Vice General Manage of Timson Enterprise Co., Ltd. and Director of Acula Technology Corporation, among other positions.
2. Experience in operational judgment, finance and accounting, business management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Mr. Lan, Shi-Wan.	N/A	0
Hou, Chi-Cheng	1. Currently holding the positions of Financial Department Assistant Manager and Corporate Governance Manager of OK Biotech Co. Ltd., Director of Aeon Diagnostic Technology Corp. and Director of Pu Yuan Biotech Co., Ltd., among other positions.
2. Experience in operational judgment, finance and accounting, business management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Mr. Hou, Chi-Cheng.	N/A	0

| Qualifications
Name | Professional Qualifications and Experiences | Independent Information | Number of
Independent
Directors
Concurrently
Serving as Other
Public Offering
Companies |
| --- | --- | --- | --- |
| | Chen, Ku-Chuan
Convenor of the
Audit Committee
Member of the
Compensation Committee
Member of the
Nomination Committee
Member of the
Sustainability Committee | 1. Currently the Member of the Compensation Committee, Audit Committee, Nomination Committee and Sustainability Committee of the Company, and holding the position of production and sales manager of Wan Long Paper MFG. Co., Ltd., among other positions. He is also the Member of the Compensation Committee, Audit Committee, Nomination Committee and Sustainability Committee of the Company.
2. Experience in operational judgment, business management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Mr./ Ms. Chen, Ku-Chuan. | None of the Company's independent directors, their spouses, relatives within the second degree of kinship are directors, supervisors or employees of the Company or its affiliates. All four independent directors have met the qualifications set forth in the “Regulations Governing Appointment of Independent Directors and Compliance Matters” issued by the FSC and Article 14-2 of the Securities and Exchange Act for the past two years prior to election and during the period in which they were in office, and have executed relevant duties and responsibilities in accordance with Article 14-3 of the Securities and Exchange Act.
The number of shares and shareholding in the Company held by the independent directors, their spouse, and relatives within the second degree of kinship or through the use of others' names are as follows:
Ho, Li-Fen: 53,663 shares; 0.04%
Peng, Chun-Kuang: 7,430 shares; 0.01% |
| Lin, Shih-Yi
Member of the
Audit Committee
Member of the
Compensation Committee
Convenor of the
Nomination Committee
Member of the
Sustainability Committee | 1. Currently the Member of the Compensation Committee, Audit Committee, Nomination Committee and Sustainability Committee of the Company, among other positions.
2. Experience in operational judgment, business management, industry knowledge, legal affairs, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Ms. Lin, Shih-Yi. | | |
| Ho, Li-Fen
Member of the
Audit Committee
Convenor of the
Compensation Committee
Member of the
Nomination Committee
Member of the
Sustainability Committee | 1. Currently the Member of the Compensation Committee, Audit Committee, Nomination Committee and Sustainability Committee of the Company, among other positions.
2. Experience in operational judgment, finance and accounting, business management, industry knowledge, international market insights and decision making.
3. There are no circumstances under Article 30 of the Company Act applicable to Ms. Ho, Li-Fen. | | |

| Qualifications
Name | Professional Qualifications and Experiences | | Independent Information | Number of Independent Directors
Concurrently Serving as Other Public Offering Companies |
| --- | --- | --- | --- | --- |
| | Lu, Ching-Chun | 1. Currently the member of the Compensation Committee, Audit Committee, Nomination Committee and Sustainability Committee of the Company, and Director/ CPA of Ezone CPAs Firm, person in charge of Ezone Enterprise Management Consultants Ltd., legal director of Grade Upon Technology Corp. and representative of Hanjing Co. Ltd. | | 0 |
| Convenor of the Audit Committee | 2. Experience in operational judgment, business management, industry knowledge, taxation and financial accounting, international market insights and decision making. | | | |
| Member of the Compensation Committee | 3. There are no circumstances under Article 30 of the Company Act applicable to Ms. Lu, Ching-Chun. | | | |
| Member of the Sustainability Committee | | | | |

Board Diversity and Independence

A. Board Diversity:

a. Board Diversity:

Please refer to “IV. Company Governance-operating Circumstances (III) Corporate Governance Implementation Status as Required by Taiwan Financial Supervisory Commission III. Composition and Responsibilities of the Board of Directors” on page 24.

b. Board Independence:

Pursuant to the Securities and Exchange Act, the number of independent directors shall not be less than two and shall not be less than one-fifth of the total number of directors. The Audit Committee shall be composed of all independent directors. The General Manager and Chairman of the Board of Directors of the Company are the same person, primarily aimed at enhancing the operational performance of the group, improving shareholder interests, and achieving the vision of sustainable business operations. However, in order to strengthen the operation of the Company's governance and management, the eighth Board of Directors comprises 11 seats (including 4 independent directors), and there are currently 4 independent directors, accounting for 36% of the total number of seats, which is in compliance with the requirement of the number of independent directors and the proportion of independent directors to the total number of seats.

The Company's Board of Directors directs the Company's operating strategies, monitors and evaluates the performance of the management team, and is accountable to the Company and its shareholders. The Board of Directors exercises its authority and power in accordance with the laws and regulations, the Articles of Incorporation, or the resolutions of the shareholders' meeting in all aspects of the Company's corporate governance system. The Company's Board of Directors emphasizes the function of independent operation and transparency, and the directors and independent directors are independent individuals who exercise their powers and functions independently. For the declaration of independence of directors, please refer to the explanation of Disclosure of Directors' Professional Qualifications and Independent Information on page 10.

(2) Information on General Managers, Deputy General Managers, Assistant Managers, Heads of Departments and Branches

April 7, 2026

Title	Nationality	Name	Gender	On-board Date	Shareholding		Shares Held by Spouse & Minors		Shares Held under Another Individual		Main Experience and Educational Background	Selected Current Positions at Other Companies	Managers Who Are Spouses or within Second-degree Relative of Consanguinity to Each Other			Note
					Shares	Shareholding Percentage (Note 2)	Shares	Shareholding Percentage (Note 2)	Shares	Shareholding Percentage (Note 2)			Title	Name	Relation
General Manager	R.O.C.	Lai, Chia-De	Male	March 1, 2006	269,936	0.18%	0	0.00%	5,374,465	3.71%	Master of Industrial Engineering Management Research Institute of NYCU Nano Dynamics INC./ QC Manager HMD Biomedical INC./ Production Department Manager Appointech INC./ Production Department Manager	Shang Shun Development Co., Ltd./ Chairman Hao Want Co., Ltd./ Chairman Pu Yuan Biotech Co., Ltd. / Chairman Aeon Diagnostic Technology Corp. / Chairman Karma Medical Products Co., Ltd./ Directors OK Biotech Pte. Ltd./ Chairman	None.	None.	None.	(Note 1)
Assistant Manager of R&D Department	R.O.C.	Li, An-Yuan	Male	May 2, 2009	28,845	0.02%	0	0.00%	0	0.00%	Master's degree in electrical engineering, NYUST Electronic Technology Co., Ltd./ Deputy Manager of R&D Department	None.	None.	None.	None.	-
Manager of QC Department	R.O.C.	Kei, I-Chen	Male	April 1, 2022	10,782	0.01%	0	0.00%	0	0.00%	Department of Child and Family Science, NTNU	None.	None.	None.	None.	-
Manager of Manufacturing Department	R.O.C.	Sie,Wun-Bin	Male	October 1, 2025	109,000	0.80%	100,000	0.07%	0	0.00%	National Chung Hsing University / Ph.D. in Materials Engineering Industrial Technology Research Institute / Deputy Section Chief	None.	None.	None.	None.	-
Finance and Accounting Supervisor	R.O.C.	Hou, Chi-Cheng	Male	July 1, 2010	19,617	0.01%	0	0.00%	0	0.00%	Bachelor's degree in accounting from FJU Shenzhen Shibang Technology Company / Financial Manager Dachan Securities Underwriting Department/ Manager International Securities Underwriting Department / Deputy Manager	Pu Yuan Biotech Co., Ltd. / Director Aeon Diagnostic Technology Corp. / Director	None.	None.	None.	-

Note 1: Mr. Lai Jiade's investment company, Hao Want Co. Ltd., holds 3,132,421 shares, and Shang Shun Development Co., Ltd. holds 2,061,044 shares, totaling 5,374,465 shares.
Note 2: The shareholding percentage was calculated based on the total number of issued shares of 144,814,164 shares as of the record date of the shareholders' meeting on April 7, 2026 (including 120,000 shares of restricted stock awards that had been withdrawn for cancellation but had not yet been registered for change as of the printing date).

2. Remuneration for Directors, General Manager, and Vice General Manager in 2025

(1) Remuneration for General Directors and Independent Directors in 2025

Unit: in Thousands of New Taiwan Dollars

Title	Name	Director's Compensation	Amount and Ratio of Total A, B, C and D to Net Income %	Compensation to a Director Who is an Employee of the Company or of the Company's Consolidated Entities	Amount and Ratio of Total A, B, C, D, E, F and G to Net Income %	Compensation to Directors from Non-consolidated Affiliates or Parent Company
Base Compensation (A)	Severance Pay and Pensions (B)	Compensation to Directors (C)	Allowances (D)	Base Compensation, Bonuses, and Allowances (E)	Severance Pay and Pensions (F)	Employees' 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
General Directors	Shang-Shan Development Co., Ltd. Representative: Lai, Chia-Da (Note 1)	0	0	0	0	1,032	1,032
Liu, Yu-Tzu (Note 1)	0	0	0	0	172	172	18
He Chan Investment Co., Ltd. Representative: Chen, Chin-Piao (Note 1)	0	0	0	0	172	172	15
Ting-Fa Investment Co., Ltd. Representative Wang: Zhen-Geng (Note 2)	0	0	0	0	172	172	18
Bei Xi Co., Ltd. Representative: Bao, Chin-Yuan (Note 2)	0	0	0	0	172	172	18
Lan, Shi-Wan (Note 2)	0	0	0	0	172	172	18
Hou, Chi-Cheng (Note 2)	0	0	0	0	172	172	18
Independent Director	Lin, Shih-Yi (Note 3)	360	360	0	0	0	0
Ho, Li-Fen (Note 3)	360	360	0	0	0	0	18
Chen, Ka-Chuan (Note 3)	360	360	0	0	0	0	18
La, Ching-Chan (Note 3)	360	360	0	0	0	0	15

Please state the policy, system, standards, and structure of the compensation of independent directors, and explain the correlation between the amount of compensation and their responsibilities, risks, time input, and other factors: The Company refers to relevant laws and regulations to formulate the director remuneration structure and refers to industry standards to establish various standards; in addition, the Board of Directors reviews the remuneration policy, system, structure, and standards irregularly according to the Company's long and short-term development plans and submits them to the Compensation Committee for review before submitting them to the Board of Directors for approval.
In addition to the disclosure in the table above, the remuneration received by the Company's directors for providing services (such as serving as non-employee advisors to parent companies/all companies in financial reports/consolidated investment businesses) in the recent fiscal year: NT$0.

Table of Compensation Levels

Compensation Level for Each Director of the Company.	Name of the Directors
	Amount and Ratio of Total A, B, C and D to Net Income		Amount and Ratio of Total A, B, C D, E, F and G to Net Income
	The Company	From All Consolidated EntitiesH	The Company	From All Consolidated EntitiesI
Less than NT$1,000,000	Liu, Yu-Tzu, Chen, Chin-Piao, Wang Zhen-Gang, Xu, Jin-Yuan, Lan, Shi-Wan, Hou, Chi-Cheng, Lin, Shih-Yi, Ho, Li-Fen, Chen, Ku-Chuan, Lu, Ching-Chun	Liu, Yu-Tzu, Chen, Chin-Piao, Wang Zhen-Gang, Xu, Jin-Yuan, Lan, Shi-Wan, Hou, Chi-Cheng, Lin, Shih-Yi, Ho, Li-Fen, Chen, Ku-Chuan, Lu, Ching-Chun	Chen, Chin-Piao, Wang Zhen-Gang, Xu, Jin-Yuan, Lan, Shi-Wan, Lin, Shih-Yi, Ho, Li-Fen, Chen, Ku-Chuan, Lu, Ching-Chun	Chen, Chin-Piao, Wang Zhen-Gang, Xu, Jin-Yuan, Lan, Shi-Wan, Lin, Shih-Yi, Ho, Li-Fen, Chen, Ku-Chuan, Lu, Ching-Chun
NT$1,000,000 (Included)~NT$2,000,000 (Not included)	Lai, Chia-De	Lai, Chia-De	Hou, Chi-Cheng	Hou, Chi-Cheng
NT$2,000,000 (Included)~NT$3,500,000 (Not included)	-	-	Liu, Yu-Tzu	Liu, Yu-Tzu
NT$3,500,000 (Included)~NT$5,000,000 (Not included)	-	-	-	-
NT$5,000,000 (Included)~NT$10,000,000 (Not included)	-	-	Lai, Chia-De	Lai, Chia-De
NT$10,000,000 (Included)~NT$15,000,000 (Not included)	-	-	-	-
NT$15,000,000 (Included)~NT$30,000,000 (Not included)	-	-	-	-
NT$30,000,000 (Included)~NT$50,000,000 (Not included)	-	-	-	-
NT$50,000,000 (Included)~NT$100,000,000 (Not included)	-	-	-	-
NT$100,000,000 or up	-	-	-	-
Total	11	11	11	11

① Please state the policy, system, standards, and structure of the compensation of independent directors, and explain the correlation between the amount of compensation and their responsibilities, risks, time input, and other factors:

The Company's Compensation Committee evaluates the independent directors' participation in the Company's operations and the value of their contributions to the Company's operations, taking into account the performance of the Board of Directors as a whole, the Company's operating results, the Company's future operations, and the risk appetite, and then distributes monthly fixed remuneration of NT$30,000. It does not participate in the distribution of director's remuneration as provided for in Article 25-1 of the Articles of Incorporation.

② In addition to the disclosure in the table above, the remuneration received by the Company's directors for providing services (such as serving as non-employee advisors to parent companies/all companies in financial reports/consolidated investment businesses) in the recent fiscal year: None.

(2) Remuneration for general manager and vice general manager

Remuneration for general manager and vice general manager paid in 2025

Unit: in Thousands of New Taiwan Dollars

Title	Name	Salary (A)		Severance Pay and Pensions (B)		Bonuses, and Allowances (C)		Employees' Compensation (D)				Amount and Ratio of Total A, B, C and D to Net Income (%)		Compensation to Directors from Non-consolidated Affiliates or Parent Company
		The Company	From All Consolidated Entities	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 Amount	Stock Amount	Cash Amount	Stock Amount
General Manager	Lai, Chia-De	3,708	3,708	0	0	1,460	1,460	3,002	0	3,002	0	8,170	8,170	None.

Table of Compensation Levels

Compensation Level for Each General Manager Vice General Manager of the Company	Names of General Manager and Vice General Manager
	The Company	From All Consolidated EntitiesE
Less than NT$1,000,000	-	-
NT$1,000,000 (Included)~NT$2,000,000 (Not included)	-	-
NT$2,000,000 (Included)~NT$3,500,000 (Not included)	-	-
NT$3,500,000 (Included)~NT$5,000,000 (Not included)	-	-
NT$5,000,000 (Included)~NT$10,000,000 (Not included)	Lai, Chia-De	Lai, Chia-De
NT$10,000,000 (Included)~NT$15,000,000 (Not included)	-	-
NT$15,000,000 (Included)~NT$30,000,000 (Not included)	-	-
NT$30,000,000 (Included)~NT$50,000,000 (Not included)	-	-
NT$50,000,000 (Included)~NT$100,000,000 (Not included)	-	-
NT$100,000,000 or up	-	-
Total	1 people	1 people

2 The remuneration of the top five highest-paid executives

Unit: in Thousands of New Taiwan Dollars

Title	Name	Salary (A)		Severance Pay and Pensions (B)		Bonuses, and Allowances (C)		Employees' Compensation (D)				Amount and Ratio of Total A, B, C and D to Net Income (%)
		The Company	From All Consolidated Entities	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
General Manager	Lai, Chia-De	3,708	3,708	0	0	1,460	1460	3,002	0	3,002	0	8,170
9.91	8,170
9.91	None.
Special Assistant to General Manager	Liu, Yu-Tzu	831	831	83	83	1,200	1,200	502	0	502	0	2616
3.17	2,616
3.17	None.
Assistant Manager of R&D Department	Li, An-Yuan	827	827	52	52	177	177	273	0	273	0	1,329
1.61	1,329
1.61	None.
Manager of Manufacturing Department	Sie,Wun-Bin	982	982	63	63	222	222	255	0	255	0	1,522
1.85	1,522
1.85	None.
Finance and Accounting Supervisor and Corporate Governance Manager	Hou, Chi-Cheng	741	741	48	48	236	236	326	0	326	0	1,351
1.64	1,351
1.64	None.

② The names of manager who received employee compensation and the distribution situation:

Unit: in Thousands of New Taiwan Dollars

Title		Name	Stock Amount	Cash Amount	Total	Total Profit Sharing of Management Team as a % of Net Income
Manager	General Manager	Lai, Chia-De	0	4,034	4,034	4.89%
	Assistant Manager	Li, An-Yuan
	Manager	Kei, I-Chen
	Manager	Sie,Wun-Bin
	Finance and Accounting Supervisor	Hou, Chi-Cheng

③ The Company and all consolidated subsidiaries have explained and analyzed the total remuneration provided to the directors, general manager, and vice general manager of the Company over the past two years as a percentage of the net profit after tax in the individual or separate financial statements. This analysis includes an explanation of the policy, standards, and composition of remuneration, the establishment of procedures for determining remuneration, and its correlation with operational performance and future risks:

The directors', general manager's and vice general manager's remunation is paid by the Company. Total payments in 2024 and 2025 as a percentage of net profit after tax in the parent company only financial statements for 2024 and 2025 were 20.14% and 23.29%, respectively. Director's remuneration includes travel expenses and director's compensation. Travel expenses are paid according to the number of times a director attends Board meetings, and are paid in the amount of NT$3,000 each time. In addition, in accordance with Article 25-1 of the Company's Articles of Incorporation, if there is a profit for the year, not more than 2% of such profit shall be set aside as remuneration to the directors and 10% to 15% as remuneration to the employees, provided that the Company shall retain the amount to make up for any accumulated losses in advance. The remuneration of the directors is based on the extent of their participation in the

Company's operations, the value of their contribution and the weighting of their succession to the Board of Directors with reference to the domestic and international industry standards. Directors are reasonably compensated, and the relevant performance evaluation and reasonableness of the remuneration have been approved by the Compensation Committee and reviewed by the Board of Directors. The Board of Directors resolved on March 10, 2026 to distribute NT$2,063,998 as directors' remuneration for the current year. The remuneration of the General Manager includes salaries, bonuses, and employee remuneration, etc. Salaries are based on peer benchmarks as well as titles, education, experience, professional competencies, and responsibilities, while bonuses are based on the performance evaluation of managers, including the practice of the Company's core values and the ability of sustainable management, financial and business performance indicators, comprehensive management indicators (e.g., the overall ESG promotion performance within the organization), as well as other special contributions or significant events. Remuneration is approved by the Chairman on the basis of operating results in accordance with the principles of allocation recommended by the Compensation Committee.

3. Company Governance-operating Circumstances

(1) Operating situations of the Board of Directors:

③ In 2025, the Board of Directors held a total of 6 meetings [A]. The attendance of directors is as follows:

Title	Name	Attendance in Person [B]	By Proxy (Absent)	Attendance Rate in Person (%) [B/A]	Note
Chairman	Shang-Shun Development Co., Ltd.
Representative: Lai, Chia-De	6	0	100%	Re-elected on July 25, 2024
Vice Chairman	Liu, Yu-Tzu	6	0	100%	Re-elected on July 25, 2024
Director	He Chun Investment Co., Ltd.
Representative: Chen, Chin-Piao	5	1	80%	Re-elected on July 25, 2024
Director	Ting-Fa Investment Co., Ltd.
Representative: Wang, Zhen-Gang	6	0	100%
Director	Bei Xi Co., Ltd.
Representative: Xu, Jin-Yuan	6	0	100%
Director	Lan, Shi-Wan	6	0	100%
Director	Hou, Chi-Cheng	6	0	100%
Independent Director	Lin, Shih-Yi	6	0	100%
Independent Director	Ho, Li-Fen	6	0	100%
Independent Director	Chen, Ku-Chuan	6	0	100%
Independent Director	Lu, Ching-Chun	5	1	80%
Other matters to be recorded:
1. If any of the following situations occurs in the operation of the Board of Directors, the date, period, content of the proposal, opinions of all independent directors, and the Company's handling of the opinions of independent directors shall be stated:
(1) Matters listed in Article 14-3 of the Securities and Exchange Act: The Company has established an Audit Committee, and the provisions of Article 14-3 do not apply. For an explanation of the matters listed in Article 14-5 of the Securities and Exchange Act, please refer to the operation of the Audit Committee in this annual report.
(2) Other resolutions adopted by the board of directors with opposition or reservations from independent directors and with records or written statements, except for the above items: None.
2. The execution status of directors recusing themselves from the interest-related proposals should indicate the names of the directors, the content of the proposal, the reasons for recusal, and their participation in the voting:

Date	會議名稱	董事姓名	議案內容	應利益迴避原因以及表決情形
2025.05.08	The Sixth Meeting of the Eighth Term Board of Directors	Chairman Lai, Chia-De,Vice Chairman Liu, Yu-Tzu and Director Hou, Chi-Cheng	Approval of the 2024 Employee Compensation Allocation Plan for the General Manager, Deputy General Managers, Senior Executives, and Finance Officers.	With the directors subject to recusal excluded, the Chairman consulted the attending directors, and the resolution was unanimously approved without objection
2025.11.07	The Ninth Meeting of the Eighth Term Board of Directors	Chairman Lai, Chia-De,Vice Chairman Liu, Yu-Tzu and Director Hou, Chi-Cheng	Resolution to Approve the 2025 Year-End Bonus Plan for the General Manager, Deputy General Managers, Senior Executives, and the Head of the Finance and Accounting Departments.	With the directors subject to recusal excluded, the Chairman consulted the attending directors, and the resolution was unanimously approved without objection

Targets for strengthening the functions of the board of directors in the current and recent years and evaluation of implementation status:

(1) The Company has fully disclosed various operating information, financial information, corporate governance, corporate social responsibility and other related information in the annual report, the Company's website and the MOPS in order to enhance the transparency of information.

(2) In order to protect the risks borne by directors and managers in the execution of business, the Company purchases “Directors’ and Managers’ Liability Insurance” for directors and managers every year and reports to the Board of Directors.

(3) The Audit Committee, the Compensation Committee, the Nomination Committee and the Sustainability Committee are composed of all independent directors of the Company, and assist the Board of Directors in carrying out its duties.

(4) In order to implement corporate governance, enhance the functions of the Company's Board of Directors, and establish performance targets to strengthen the operational efficiency of the Board of Directors, the “Method for Evaluating the Performance of the Board of Directors” has been formulated in accordance with Article 37 of the Company's Practical Guidelines for Corporate Governance to conduct the evaluation on an annual basis. The scope of performance evaluation of the Board of Directors includes the Board of Directors as a whole, individual Board members and functional committees.

Attendance of independent directors at each Board meeting in 2025

◎ : Attended in person; ☆ : Attended by proxy; * : Not attended

Name	2025.03.11	2025.04.10	2025.05.08	2025.08.11	2025.08.21	2025.11.07
Lin, Shih-Yi	◎	◎	◎	◎	◎	◎
Ho, Li-Fen	◎	◎	◎	◎	◎	◎
Chen, Ku-Chuan	◎	◎	◎	◎	◎	◎
Lu, Ching-Chun	◎	◎	☆	◎	◎	◎

② Implementation status of Board of Directors' evaluation:

Evaluation Cycle	Evaluation Period	Evaluation Scope
Conducting the evaluation once a year	From: January 1, 2025
To: December 31, 2025	1. Board of Directors
2. Individual Board members
3. Functional committees	Self-evaluation by Board members	1. Performance evaluation of the Board of Directors:
(1) Participation in the company's operations
(2) Improving the quality of the board of directors' decision-making
(3) Composition and structure of the board of directors
(4) Selection and continuous education of directors
(5) Internal control

Evaluation of individual Board members:
(1) Understanding the company's goals and missions
(2) Recognition of director's duties
(3) Participation in the company's operations
(4) Internal relationship management and communication
(5) Director's professionalism and continuous education
(6) Internal control
Evaluation of functional committees:
(1) Participation in the company's operations
(2) Recognition of the duties of functional committees
(3) Improving the quality of functional committees' decision-making
(4) Composition and appointment of functional committees and their members
(5) Internal control |

(2) Operations of the Audit Committee:

In 2025, the Audit Committee held a total of 6 meetings [A]. The attendance of independent directors is as follows:

| Name | Attendance in Person
【B】 | By Proxy | Attendance Rate in Person (%)
【B/A】 |
| --- | --- | --- | --- |
| Chen, Ku-Chuan | 6 | 0 | 100% |
| Lin, Shih-Yi | 6 | 0 | 100% |
| Ho, Li-Fen | 6 | 0 | 100% |
| Lu, Ching-Chun | 5 | 1 | 83% |

Other matters to be recorded:

If any of the following situations occur in the operation of the Audit Committee, the following should be documented: the date and session of the Audit Committee meeting, the agenda items, any dissenting opinions from independent directors, reservations, or significant recommendations, the decisions made by the Audit Committee, and the company's response to the opinions of the Audit Committee.

(1) Matters listed in Article 14-5 of the Securities and Exchange Act:

Audit Committee Date and Session	Proposal Content	Dissenting opinions from independent directors, reservations, or significant recommendations	Audit Committee Resolution Result	Handling of Opinions from Audit Committee by the Company
March 11, 2025
The 4rd Audit Committee, 3th Meeting	1. Business report and financial statements (consolidated and parent company only) for the year ended December 31, 2024.	None.	Approved and passed by all members of the Audit Committee.	N/A
	2. "Internal Control System Statement" for the year ended December 31, 2024.	None.	Approved and passed by all members of the Audit Committee.	N/A
	3. Proposed changing of the Company's Certified Public Accountant	None.	Approved and passed by all members of the Audit Committee.	N/A
	4. Proposed assessment of independence and suitability of the Certified Public Accountant.	None.	Approved and passed by all members of the Audit Committee.	N/A
	5. Proposed appointment and compensations of Certified Public Accountant for the financial statement of the year ended December 31, 2025.	None.	Approved and passed by all members of the Audit Committee.	N/A
	6. Proposal for the Company to provide an endorsement guarantee to its subsidiary, Pu Yuan Biotech Co., Ltd.	None.	Approved and passed by all members of the Audit Committee.	N/A
	7. The Company's Investment Project	None.	Approved and passed by all members of the Audit Committee.	N/A
	8. Proposed amendments to certain articles of the "Articles of Incorporation."	None.	Approved and passed by all members of the Audit Committee.	N/A
	9. Proposal for the Settlement of Accounts Receivable from RMD, the Company's Indian Customer	None.	Approved and passed by all members of the Audit Committee.	N/A

| April 10, 2025
The 4rd Audit Committee, 4th Meeting | 1. Repurchase of the Company’s Shares. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| --- | --- | --- | --- | --- |
| May 8, 2025
The 4rd Audit Committee, 5th Meeting | 1. Financial statement for the first quarter of 2025. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| August 11, 2025
The 4th Audit Committee, 6th Meeting | 1. Financial statement for the second quarter of 2025. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 2. Approval of the Second Grant of Restricted Employee Shares and the Issuance of New Shares for Fiscal Year 2023. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| August 21, 2025
The 4th Audit Committee, 7th Meeting | 1. Repurchase of the Company’s Shares. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| November 7, 2025
The 4th Audit Committee, 8th Meeting | 1. Financial statement for the third quarter of 2025. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 2. Proposal for the Rotation of the Company’s Certifying Accountants | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 3. Proposed assessment of independence and suitability of the Certified Public Accountant. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 4. Proposal for the Evaluation of the Independence and Competence of the Company’s Certifying Accountants for Fiscal Year 2026. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 5. Proposed appointment and compensations of Certified Public Accountant for the financial statement of the year ended December 31, 2025. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 6. Proposal for the 2026 Internal Audit Plan | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 7. Proposal for Defining the Scope of the Company’s ‘Basic-Level Employees’ and Amending Certain Provisions of the Internal Control System. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 8. Proposal for the Company to provide an endorsement guarantee to its subsidiary, Pu Yuan Biotech Co., Ltd. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 9. Proposal for the Addition of Certifying Accountants and Non-Assurance Services from the Affiliated Firm. | None. | Approved and passed by all members of the Audit Committee. | N/A |
| | 10. Proposal for the Disposal of the Company’s Real Estate | None. | Approved and passed by all members of the Audit Committee. | N/A |
| (2) Except for the aforementioned matters, there were no other resolutions that were not approved by the Audit Committee but were approved by more than two-thirds of the directors: None. | | | | |

The execution status of independent directors recusing themselves from the interest-related proposals should indicate the names of the independent directors, the content of the proposal, the reasons for recusal, and their participation in the voting: None.
Communication between independent directors and internal audit executives and accountants:

(1) The internal audit executive reports to the Audit Committee on the annual audit plan and actual implementation at the quarterly Audit Committee meetings; the internal audit executive reports to each independent director in writing every month and makes necessary communication.

(2) The accountant attends the Audit Committee meeting and communicates and interacts with independent directors on the auditing or review of financial statements, or financial, tax, or internal control related issues.

(3) The Company maintained good communication between its independent directors, internal auditors and certified public accountants. The matters communicated in 2025 are summarized in the table as follows:

Date	Meeting	Party	Key points of communication	Recommendations and implementation status
March 12, 2025	Audit Committee (Separate communication)	Internal audit executive	1. Summary report of audit operations from November 2024 to February 2025.
2. Report on the effectiveness of internal control system and statement for the year ended December 31, 2024.	No objection
	Seminar (Separate communication)	Accountant	1. Audit results of consolidated financial statement for 2024.
2. Updates of critical accounting standards, interpretation of orders, securities and tax-related laws and regulations.	No objection
May 8, 2025	Audit Committee (Separate communication)	Internal audit executive	1. Summary report of audit operations from March 2025 to April 2025.	No objection
	Seminar (Separate communication)	Accountant	1. Audit results of the financial statement for the first quarter of 2025.
2. Updates of critical accounting standards, interpretation of orders, securities and tax-related laws and regulations.	No objection
August 11, 2025	Audit Committee (Separate communication)	Internal audit executive	1. Summary report of audit operations from May 2025 to July 2025.	No objection
	Seminar (Separate communication)	Accountant	1. Audit results of the financial statement for the second quarter of 2025.
2. Updates of critical accounting standards, interpretation of orders, securities and tax-related laws and regulations.	No objection
November 7, 2025	Audit Committee (Separate communication)	Internal audit executive	1. Summary report of audit operations from August 2025 to October 2025.	No objection
	Seminar (Separate communication)	Accountant	1. Audit results of the financial statement for the third quarter of 2025.
2. Updates of critical accounting standards, interpretation of orders, securities and tax-related laws and regulations.	No objection

The Audit Committee's focuses of work for 2025 are as follows:

(1) Regular communication with the internal audit executive about the results of the audit report in accordance with the annual audit plan
(2) Regular communication Company's certified public accountants on the results of their reviews or audits of the quarterly financial statements
(3) Review of financial statements
(4) Evaluation of the effectiveness of the internal control system
(5) Consideration of the business report and proposal for earnings distribution
(6) Appointment, dismissal, or compensation of certified public accountants
(7) Assessment of independence and suitability of the Certified Public Accountants
(8) Major asset or derivative transactions
(9) Proposal for the Establishment or Amendment of the Internal Control System

(3) Corporate Governance Implementation Status as Required by Taiwan Financial Supervisory Commission

Assessment Item	Yes	Implementation Status	Non-implementation and Its Reason(s)
		Summary
1. Does Company follow "Taiwan Corporate Governance Implementation" to establish and disclose its corporate governance practices?	√	The Company has discussed and adopted the "Corporate Governance Implementation Guidelines" in accordance with the "Taiwan Corporate Governance Implementation Guidelines" at the 12th meeting of the 5th session of the board of directors on December 14, 2023. These guidelines have been disclosed on the Market Observation Post System (MOPS) and the company's website.	There is no significant difference.
2. Shareholding Structure & Shareholders' Rights
(1) Does Company have Internal Operation Procedures for handling shareholders' suggestions, concerns, disputes and litigation matters. If yes, has these procedures been implemented accordingly?	√	(1) The Company has a spokesperson and an investor relations contact person to handle shareholders' proposals, questions, disputes and litigation matters. However, the Company has not yet established internal operating procedures, which will be evaluated and formulated in the future as necessary.	(1) There is no significant difference.
(2) Does Company possess a list of major shareholders and beneficial owners of these major shareholders?	√	(2) The Company and its stock registrar agency keep track of the shareholdings of major shareholders on a regular basis.	(2) There is no significant difference.
(3) Has the Company built and executed a risk management system and "firewall" between the Company and its affiliates?	√	(3) The Company handles reinvestments in accordance with the Company's "Internal Control System," "Internal Audit System," and relevant laws and regulations.	(3) There is no significant difference.
(4) Has the Company established internal rules prohibiting insider trading on undisclosed information?	√	(4) The Company has established the "Measures Governing Prevention of Insider Trading" and "Procedures for Handling Material Internal Information" to prohibit insiders of the Company from utilizing undisclosed information in the market to trade in marketable securities.	(4) There is no significant difference.

Assessment Item	Yes	No	Implementation Status		Non-implementation and Its Reason(s)
			Summary
3. Composition and Responsibilities of the Board of Directors

(1) Has the Board of Directors established a diversity policy, set goals, and implemented them accordingly? | ☑ | | (1) In accordance with Article 20 of the Company's “Practical Guidelines for Corporate Governance”, the composition of the Board of Directors shall take diversity into consideration, and the Company shall formulate an appropriate diversity policy with respect to the Company's operations, business model and development needs. The Company currently has 11 directors, 4 of whom are female. Their expertise covers various fields such as business management, industry, and finance, which fully realizes the concept of diversification of the Board of Directors. The percentage of directors with employee status is 27%, with 36% of independent directors, and 36% of female directors. There is 1 independent director with a term of office of 6 years (inclusive) or more, and 3 independent directors with a term of office of 4 years (exclusive) or less. 5 directors are aged 61 to 70, 2 are aged 51 to 60, 2 are aged 41 to 50, and 2 are aged 31 to 40.

The specific management objectives for the diversity of directors are as follows: | | (1) There is no significant difference. |
| | | | Management Objectives | Achievement Status | |
| | | | At least one-third of the directors have experience in manufacturing related industries. | Achieved | |
| | | | The number of directors concurrently serving as company mangers should not exceed one-third of the total number of directors. | Achieved | |

Assessment Item	Yes	No	Implementation Status
(2) Besides the mandatory establishment of the Compensation Committee and the audit committee, has the company voluntarily established other functional committees?	☑	☐	2. Please refer to the Company's website for a disclosure of the proposed policy on diversity in the composition of the Board of Directors.
3. Please refer to Note 1 for the implementation of the diversity of the Board of Directors.	(2) There is no significant difference.
	☑	☐	(2) The Company has established a Compensation Committee and an Audit Committee in accordance with the law; a Nomination Committee and a Sustainable Development Committee to promote the related work. In the future, the Company will evaluate the establishment of other functional committees in accordance with the Company's development needs and legal requirements.
(3) Has the company established a board performance evaluation method and its evaluation method, and conducted regular performance evaluations every year, and submitted the results to the Board of Directors for use as a reference for individual director compensation and nomination for reappointment?	☑	☐	(3) In 2020, the Company established the Method for Evaluating the Performance of the Board of Directors and performs evaluation on an annual basis. The scope of performance evaluation of the Board of Directors includes the Board of Directors as a whole, individual Board members and each functional committee.

The evaluation was conducted by 11 current directors who completed self-assessment questionnaires, which were then collected and compiled for statistical analysis by the corporate governance staff. The performance evaluation indicators are described as follows:

The overall Board of Directors, including five major aspects:
(1) Participation in the company's operations
(2) Improving the quality of the board of directors' decision-making
(3) Composition and structure of the board of directors
(4) Selection and continuous education of directors | (3) There is no significant difference. |

Assessment Item	Yes	No	Implementation Status	Non-implementation and Its Reason(s)
			(5) Internal control
2. Individual Board members, including six major aspects:
(1) Understanding the company's goals and missions
(2) Recognition of director's duties
(3) Participation in the company's operations
(4) Internal relationship management and communication
(5) Director's professionalism and continuous education
(6) Internal control
3. Functional committees, including five major aspects:
(1) Participation in the company's operations
(2) Recognition of the duties of the Audit Committee
(3) Improving the quality of functional committees' decision-making
(4) Composition and appointment of the Audit Committee and its members
(5) Internal control

In January 2026, the Company completed the 2025 performance evaluation of the Board of Directors as a whole, individual Board members and functional committees. After collecting and compiling the validated self-assessment questionnaires from 11 directors, the scores were weighted and statistically converted according to the evaluation indicators. The scores were rated on a scale of "5 Excellent (Strongly Agree), 4 Good (Agree), 3 Medium (Fair), 2 Poor (Disagree), 1 Very Poor (Strongly Disagree)". The full score of each evaluation is 5 points. | |

Assessment Item	Yes	No	Implementation Status	Non-implementation and Its Reason(s)
Summary
			The evaluation results are as follows:
Item	Score	Result
Board of Directors as a whole	4.82	Good
Individual Board members	4.85	Good
Audit Committee	4.52	Good
Compensation Committee	4.52	Good
Nominating Committee	4.51	Good
Sustainability Committee	4.51	Good
The results of the Company's 2025 performance evaluation were reported to the Board of Directors on March 10, 2026, for discussion and recommendations for improvement with respect to the operations of the Board of Directors as a whole and each functional committee and individual directors in 2025 .
1. Board of Directors: There are no items that need to be improved in the directors' self-assessment indicators.
2. Audit Committee: It will prepare more complete and timely information for members' reference before meetings in advance in the future, and arrange for relevant personnel in attendance to make presentations when necessary, so as to enable the functional committee to fulfill their duties smoothly.
3. Compensation Committee: There are no items that need to be improved in the members' self-assessment indicators.
4. Nomination Committee: There are no items that need to be improved in the members' self-assessment indicators.
5. Sustainable Development Committee: There are no items that need to be improved in the members' self-assessment indicators.
(4) Does the company conducts periodic evaluations of the independence of its auditors?	√		(4) The Company periodically evaluates the independence of certified public accountants each year, obtains the “Declaration of Independence” issued by the certified public accountants, evaluates	(4) There is no significant difference.

Assessment Item	Yes	Implementation Status
		Summary
4. Has the listed company appointed suitable and sufficient personnel for its corporate governance, and designated a corporate governance officer responsible for corporate governance-related matters (including but not limited to providing the directors and supervisors with necessary information, assisting the directors and supervisors in complying with laws, handling matters related to the Board of Directors and Shareholders' Meetings, preparing minutes of the board of directors and Shareholders' Meetings, etc.)?	☑	1. The Finance Department of this company serves as the specialized unit for corporate governance, responsible for coordinating corporate governance-related affairs, protecting shareholder rights, and strengthening the functions of the board of directors. Its main responsibilities include providing information necessary for the board to execute its duties, handling matters related to board and shareholder meetings, preparing minutes of board and Shareholder Meetings, and processing company registrations and changes.
2. On March 10, 2021, the board of directors passed a resolution to appoint Mr. Hou Chi-Cheng, the financial and accounting manager, as the head of corporate governance.
3. For the year ended December 31, 2025, the Company operated and executed corporate governance-related affairs in compliance with the law. The main activities carried out during this period were:
(1) Conducting 6 Board of Director meetings, 1 Annual Shareholders' Meeting and 1 Extraordinary Shareholders' Meeting.
(2) Revising relevant rules and regulations of the company based on the latest laws and regulations in the Company's	There is no significant difference.

Assessment Item	Yes	No	Implementation Status	Non-implementation and Its Reason(s)
			operating areas and company laws, for discussion by the Board of Directors.

(3) Completing the registration and changes of the Company in accordance with the resolutions of each meeting.

(4) Maintaining investor relations, exchanging and communicating with investors through the annual investor conference and annual shareholders' meeting, and updating the Company's corporate website from time to time to keep investors informed of the Company's finance, operations, and corporate governance to ensure that shareholders' rights and interests are safeguarded.

Status of further study in 2025: On August 8, 2025 and October 31, 2025, six hours of training were completed at the Securities and Futures Institute of the Republic of China, and on August 15, 2025, six hours of online training were completed at the Exchange; for a total of twelve hours of training. | |
| 5. Has the Company established a means of communicating with its Stakeholders (including but not limited to shareholders, employees, customers, suppliers, etc.) or created a Stakeholders Section on its Company website? Does the Company respond to stakeholders' questions on corporate responsibilities? | ☑ | | The Company has identified major stakeholders as: suppliers, non-profit organizations, community residents, government agencies, customers, shareholders and employees, and has set up a stakeholder section on the Company's website to disclose information on the channels for stakeholders to file complaints. The Company has also established an online feedback section to understand stakeholders' thoughts and expectations of the Company through different means, in order to discover the risks and management blind spots that the Company may be facing, as well as enable stakeholders to understand the Company's efforts and performance in various aspects of corporate social responsibility through the process of communication. | There is no significant difference. |

Assessment Item	Yes	Implementation Status	Non-implementation and Its Reason(s)
		Summary
6. Has the Company appointed a professional registrar for its Shareholders' Meetings?	☑	We have appointed the Professional Stock Affairs Department, Fubon Securities Co., Ltd. as registrar for our Shareholders' Meetings.	There is no significant difference.
7. Information Disclosure
(1) Has the Company established a corporate website to disclose information regarding its financials, business and corporate governance status?
(2) Does the Company use other information disclosure channels (e.g. maintaining an English-language website, designating staff to handle information collection and disclosure, appointing spokespersons, webcasting investors conference etc.)?
(3) Does the Company announce and report the annual financial statements within two months after the end of the fiscal year, and announce and report the first, second, and third quarter financial statements as well as the operating status of each month before the prescribed deadline?	☑	(1) The Company has disclosed the information related to finance and business and corporate governance (Investor Services) on the Company's website (https://www.okbiotech.com).
Information related to the Company's finance and business and corporate governance is also available on the MOPS.
(2) The Company has dedicated personnel responsible for the collection of relevant information and the disclosure of significant events of the Company, and implements a spokesperson system. Information on the investor conference is available on the “Investor Services” section of the Company's website. Our financial reports and monthly operating status reports are all filed within the statutory deadline.
(3) The Company has announced and filed annual and quarterly financial reports within the period prescribed by law, and publishes turnover information on the 10th of each month (on the next business day in case of a holiday).	(1) There is no significant difference.
(2) There is no significant difference.
(3) There is no significant difference.
8. Has the Company disclosed other information to facilitate a better	☑	(1) Employee rights and employee wellness: Guided by the principle of humane management, we provide employees with	There is no significant difference.

Assessment Item	Yes	No	Implementation Status		Non-implementation and Its Reason(s)
			Summary
understanding of its corporate governance practices (e.g. including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors' training records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies, and purchasing insurance for directors)?			full respect and care. Through continuous planning of various employee welfare measures and offering relevant education and training, we aim to provide employees with a better working environment and development opportunities. We implement a retirement pension system in accordance with the Labor Pension Act, the Labor Standards Act, and related regulations to safeguard employee rights. Additionally, we arrange regular health check-ups for employees. The "Procedures for Handling Material Internal Information," established to manage significant information within the company, have been communicated to all directors, supervisors, managers, and employees. This protocol and related guidelines have been posted on the Company's internal network for all staff to adhere to, aiming to prevent violations or occurrences of insider trading.

(2) Investor Relations: A dedicated investor section is established, with contact information provided on the Company's website, serving as the primary channel for addressing shareholder suggestions and responding to investor inquiries.

(3) Supplier Relations and Stakeholder Rights: Upholding principles of integrity, we maintain positive and interactive relationships with our suppliers, ensuring timely payments without any outstanding debts or delays. We also maintain open communication channels with stakeholders, financial institutions, and other relevant parties, fostering a conducive environment for dialogue. Should there be any needs, stakeholders are welcome to contact the company at any time. | | |

Assessment Item	Yes	No	Implementation Status	Non-implementation and Its Reason(s)
			Summary
			(4) All directors of the Company (including independent directors) have undergone continuing education in accordance with the guidelines outlined in the "Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies" issued by the Taiwan Stock Exchange. Furthermore, the directors have met the required continuing education hours in recent years.

(5) The Company has established internal regulations as the basis for various risk management policies and risk assessment criteria.

(6) Regular business reviews are conducted with clients to understand their feedback and address any related issues, thereby maintaining stable and positive relationships to enhance company profitability.

(7) The Company has obtained directors', supervisors', and managers' liability insurance from Fubon Insurance Co., Ltd., Ltd., with coverage of USD 5 million, effective from March 15, 2026 to March 15, 2027. | |
| 9. The improvement status for the result of Corporate Governance Evaluation announced by Taiwan Stock Exchange in the most recent year, and priority enhancements and measures for those that have not yet been improved:

(1) Has the Company convened its Annual General Meeting before the end of May? (1.6):
The Company’s 2027 Annual General Meeting is scheduled to be convened before the end of May. (In progress)

(2) Has the Company’s Sustainability Report been submitted to and approved by the Board of Directors? (4.24):
The Company’s 2024 Sustainability Report was submitted to the Chairman for discussion and approved on August 11, 2025. (Improved) | | | | |

Note 1: The diversity of the Board of Directors is as follows:

Name	Title	Gender	Operational Judgment	Business Management	Leadership Decision Making	Industry Knowledge	Finance and Accounting	International Market Insights	Crisis Management	Environmental Management and Social Participation
Shang-Shun Development Co., Ltd.
Representative: Lai, Chia-De	Chairman	Male	V	V	V	V	V	V	V	V
Liu, Yu-Tzu	Vice Chairman	Female	V	V	V	V		V	V	V
He Chun Investment Co., Ltd.
Representative: Chen, Chin-Piao	Director	Male	V	V	V	V		V	V	V
Ting-Fa Investment Co., Ltd.
Representative: Wang, Zhen-Gang	Director	Male	V	V	V	V		V	V	V
Bei Xi Co., Ltd.
Representative: Xu, Jin-Yuan	Director	Male	V	V	V	V		V	V	V
Lan, Shi-Wan	Director	Male	V	V	V	V	V	V	V	V
Hou, Chi-Cheng	Director	Male	V		V	V	V	V	V	V
Lin, Shih-Yi	Independent Director	Female	V		V	V		V	V	V
Ho, Li-Fen	Independent Director	Female	V	V	V	V	V	V	V	V
Chen, Ku-Chuan	Independent Director	Male	V	V	V	V		V	V	V
Lu, Ching-Chun	Independent Director	Female	V	V	V	V	V	V	V	V

Note 2:

Evaluation Criteria of Independence of Accountants:

Assessment Item	Evaluation Results	Compliance with Independence
1. Confirmation with the stock affairs unit as to whether accountants hold a shareholding in the Company.	No	Yes
2. Confirmation as to whether accountants hold concurrent positions with the Company or an affiliate.	No	Yes
3. Whether the Declaration of Independence has been obtained from accountants.	Yes	Yes

Evaluation Criteria of Suitability of Accountants:

Assessment Item	Evaluation Results
1. Audit experience	Compliant
2. Training hours	Compliant
3. Turnover rate	Compliant
4. Professional support	Compliant
5. Accountant's load	Compliant
6. Audit input	Compliant
7. EQCR review status	Compliant
8. Quality control support capability	Compliant
9. Non-audit service fee	Compliant
10. Customer familiarity	Compliant
11. External inspection deficiencies and sanctions	Compliant
12. Improvement letters from competent authorities	Compliant
13. Innovative plans or initiatives	Compliant

(4) Composition, Responsibilities, and Operations of the Compensation Committee

① Information on Members of the Compensation Committee

April 30, 2026

| Status | Qualifications
Name | Professional Qualifications and Experiences | Independence Status | Number of Members of the Compensation Committee
Concurrently Serving as Other Public Offering Companies |
| --- | --- | --- | --- | --- |
| Independent Director
(Convenor) | Ho, Li-Fen | Please refer to page 10 for details on the
Disclosure of Directors' Professional
Qualifications and Independent Information. | 0 | |
| Independent Director | Lin, Shih-Yi | | | 1 |
| Independent Director | Chen, Ku-Chuan | | | 0 |
| Independent Director | Lu, Ching-Chun | | | 1 |

② Information on the Operations of the Compensation Committee

A. The members of the compensation committee in this term are four independent directors.

B. The current term of office for the committee is from August 9, 2024, to July 24, 2027. In 2024, the Compensation Committee convened three meetings (A). The attendance of members is as follows:

Title	Name	Attendance in Person (B)	Attendance Rate in Person % (B/A)	Note
Convenor	Ho, Li-Fen	2	100%	Re-elected
Member	Lin, Shih-Yi	1	50%	Re-elected
Member	Chen, Ku-Chuan	2	100%	Re-elected
Member	Lu, Ching-Chun	2	100%	Re-elected

C. Resolution Items of the Compensation Committee:

Session/Date	Proposal Content	Resolution Result	Handling of Opinions from Compensation Committee by the Company
The 6th Compensation Committee, 2nd Meeting May 8, 2025	Proposed the distribution of the compensation for the Company's General Manager, Vice General Manager, First-level Supervisors, and Finance and Accounting Supervisor for the year ended December 31, 2024.	Approved and passed by all attending committee members.	Proposed to the Board of Directors and approved and passed by all attending directors.
The 6th Compensation Committee, 3rd Meeting August 11, 2025	Resolution to Approve the Allocation of Directors' Remuneration for Fiscal Year 2024.	Approved and passed by all attending committee members.	Proposed to the Board of Directors and approved and passed by all attending directors.
The 6th Compensation Committee, 4th Meeting November 7, 2025	Proposed the Company's incentive scheme for the General Manager, Vice General Manager, First-level Supervisors, and Finance and Accounting Supervisor for the year ended December 31, 2025.	Approved and passed by all attending committee members.	Proposed to the Board of Directors and approved and passed by all attending directors.

Other matters to be recorded:

The Board should document the date, session, agenda, resolution, and the company's handling of the Compensation Committee's views if it does not adopt or amend the recommendations of the Compensation Committee. If the board approves compensation that exceeds the recommendations of the Compensation Committee, the differences and reasons should be stated: None.
If there are dissenting or reserved opinions from members of the Compensation Committee with recorded or written statements, the Compensation Committee's date, session, agenda, all members' opinions, and the handling of those opinions should be documented: None.

(5) Composition, Responsibilities, and Operations of the Nominating Committee

② Qualifications and Responsibilities of Nomination Committee Members

Per Article 5 of the Company's "Nominating Committee Charter," the responsibilities of the Nominating Committee include:

A. The Company establishes standards for the professional knowledge, skills, experience, and diverse backgrounds, including gender diversity, required for the board members and senior managers, as well as criteria for independence. These standards are used to search, review, and nominate candidates for directors and senior management positions.

B. The Company constructs and develops the organizational structure of the Board of Directors and its committees. It conducts performance evaluations of the board, its committees, individual directors, and senior managers. Additionally, it assesses the independence of independent directors.

C. The Company establishes and regularly reviews director training plans as well as succession plans for directors and senior managers.

② Professional Qualifications, Experience and Operations of the Nominating Committee Members:

A. The current Nomination Committee has four members, all of whom are independent directors.

B. The current term of office for the committee is from August 9, 2024, to July 24, 2027. In 2025, the Nomination Committee convened one meetings (A). The qualifications and attendance of members are as follows:

Title	Name	Professional Qualifications and Experiences	Attendance in Person (B)	By Proxy	Attendance Rate in Person(%) (B/A)
Member (Convenor)	Lin, Shih-Yi	Please refer to page 10 for details on the Disclosure of Directors' Professional Qualifications and Independent Information.	1	1	100%
Member	Ho, Li-Fen		1	1	100%
Member	Chen, Ku-Chuan		1	1	100%
Member	Lu, Ching-Chun		1	1	100%
C. Resolution of the Nomination Committee:
Session/Date	Proposal Content		Resolution Result	Handling of Opinions from Nomination Committee by the Company
The 3rd Nomination Committee, 2nd Meeting November 12, 2024	Proposal for the 2025 Directors' Education and Training Program.		Approved and passed by all attending committee members.	Proposed to the Board of Directors and approved and passed by all attending directors.
Other matters to be recorded: There is no such occurrence to specify the meeting date, session, agenda content of the nominating committee, recommendations or objections from the nominating committee members, decision results of the nominating committee, and the company's handling of the opinions of the nominating committee: None.

(6) Composition, Duties, and Operation of the Sustainability Development Committee

② Duties of the Sustainability Development Committee

The Sustainability Development Committee, with the purpose of implementing sustainable operations, shall continuously promote corporate sustainability and enhance corporate governance. Under the authorization of the Board of Directors, the Committee shall exercise the due care of a prudent manager and faithfully perform the following duties, which shall be reported to the Board of Directors.

A. Formulate, promote, and strengthen the Company's sustainability policies, annual plans, and strategies.
B. Review, monitor, and revise the implementation status and effectiveness of sustainability development.
C. Supervise matters relating to sustainability information disclosure and deliberate on the Sustainability Report.
D. Oversee the execution of the Company's Sustainability Development Code and other sustainability-related tasks as resolved by the Board of Directors.

② Member Information and Functioning of the Sustainability Committee:

A. The members of the Company's Sustainability Development Committee consist of the Chairman and all Independent Directors, totaling five persons.

B. The term of office of the current Committee members is from November 12, 2024 to July 24, 2027. In fiscal year 2025, the Sustainability Development Committee convened one meeting (A). The qualifications and attendance of the members are as follows:

Title	Name	Professional Qualifications and Experiences	Attendance in Person (B)	By Proxy	Attendance Rate in Person(%) (B/A)
Member (Convenor)	Lai, Chia-De	Please refer to page 10 for details on the Disclosure of Directors' Professional Qualifications and Independent Information.	1	0	100%
Member	Lin, Shih-Yi		1	0	100%
Member	Ho, Li-Fen		1	0	100%
Member	Chen, Ku-Chuan		1	0	100%
Member	Lu, Ching-Chun		1	0	100%
C. Resolutions of the Sustainability Committee
Session/Date		Proposal Content	Resolution Result		Handling of Opinions from Sustainability Committee by the Company
The 1st Sustainability Committee, 1st Meeting August 11, 2025		Approval of the Company's 2024 Sustainability Report.	Approved and passed by all attending committee members.		Proposed to the Board of Directors and approved and passed by all attending directors.
Other matters to be recorded: There is no such occurrence to specify the meeting date, session, agenda content of the Sustainability Committee, recommendations or objections from the Sustainability Committee members, decision results of the Sustainability Committee, and the company's handling of the opinions of the Sustainability Committee: None.

(7) Sustainability Development Implementation Status as Required by Taiwan Financial Supervisory Commission

Assessment Item	Yes	Implementation Status	Non-implementation and Its Reason(s)
		Summary
1. Does the Company have a governance structure for sustainability development and a dedicated (or ad-hoc) sustainable development organization with Board of Directors authorization for senior management, which is reviewed by the Board of Directors?	√	(1) On November 12, 2024, the Board of Directors of the Company approved the establishment of the “Sustainable Development Committee”, which consists of General Manager Lai, Chia-De, Independent Director Lin, Shih-Yi, Independent Director Chen, Ku-Chuan, Independent Director Ho, Li-Fen and Independent Director Lu, Ching-Chun, with General Manager Lai, Chia-De serving as the Chief Sustainability Officer (Convener). General Manager Lai, Chia-De convened six senior executives from different disciplines to form a Sustainable Development Promotion Task Force to develop strategies, goals and action plans for the Company in the areas of environment, corporate governance and society.	There is no significant difference.
		(2) The Sustainability Promotion Task Force, through internal meetings, various questionnaires/opinion surveys, and document sign-offs, allocates responsibilities according to different issues of concern to stakeholders. It formulates strategies, objectives, and action plans for the Company in the areas of environment, corporate governance, and society, and submits the results to the Sustainability Development Committee. The Sustainability Development Committee shall convene at least one meeting annually and report to the Board of Directors at least once a year on ESG strategies and implementation outcomes.
		(3) The Board of Directors is responsible for overseeing the execution objectives and strategies of the Sustainability Development Committee, and shall, when necessary, urge the Committee to make adjustments to ensure that the Company’s operations are aligned with sustainability goals.

Assessment Item	Yes	No	Implementation Status	Non-implementation and Its Reason(s)
2. Does the Company follow materiality principle to conduct risk assessment for environmental, social and corporate governance topics related to company operation, and establish risk management related policy or strategy?	☑		1. Environmental protection: The company is committed to environmental restoration and energy conservation improvement in the factory area, and has formulated management strategies for "energy conservation and carbon reduction", "greenhouse gas reduction", and "reduction of water or other waste":

(1) Promote various energy-saving and carbon-reducing measures: including implementing paper reuse, garbage classification, turning off lights when leaving a room, and building energy-saving facilities to reduce greenhouse gas emissions and the impact on the natural environment.

(2) Greenhouse gas reduction measures: equipment is changed to high-efficiency and variable frequency regulation. | There is no significant difference. |
| | | | (3) Water-saving and other waste reuse measures: continue to invest in reducing process water consumption and using rainwater recycling to effectively reuse water resources.

Social norms: The company's daily business follows legal regulations such as the Company Act and the Securities Exchange Act. All production activities and business behaviors require employees and suppliers to follow regulations. The company also promotes regulations in internal meetings or courses
Corporate governance: The Company has established a code of conduct for integrity management, a code of ethics, operating procedures for integrity management, and behavioral guidelines as the basis for daily ethical behavior and business compliance by the Company's management and employees. Furthermore, through the establishment of internal controls, authorization systems, and functional division of duties, we aim to strengthen operational efficiency and effectiveness, safeguard asset security, and ensure compliance with legal requirements, thereby implementing the principles of corporate governance. | |

Assessment Item	Yes	No	Implementation Status	Non-implementation and Its Reason(s)
Summary
3. Environmental Topic
(1) Has the Company set an environmental management system designed to industry characteristics?
(2) Is the Company committed to improving resource efficiency and to the use of renewable materials with low environmental impact?	☑		(1) The Company has established a "Work Environment Control Procedure", and there are no significant waste or pollution issues in the production process. Additionally, we have entrusted legitimate vendors to handle the recycling and disposal of waste materials.
☑		(2) The Company actively promotes double-sided use of paper for routine tasks and strives to reduce paper usage significantly, aiming to conserve Earth's resources.
(3) Does the Company evaluate current and future climate change potential risks and opportunities and take measures related to climate related topics?
(4) Does the Company collect data for greenhouse gas emissions, water usage and waste quantity in recent two years, and set greenhouse gas emissions reduction, water usage reduction and other waste	☑		(3) The Company places great emphasis on issues related to climate change, and therefore encourages employees to start from their daily lives. For example, employees are encouraged to adopt double-sided printing for documents whenever possible, and recycling bins for paper are placed near photocopiers for reuse. Additionally, employees are encouraged to use electronic means for document or letter transmission to significantly reduce paper consumption. Furthermore, the office temperature is set at 27 degrees Celsius, and energy-saving LED lighting is used for illumination. Employees also respond to the Company's policy by turning off lights when leaving rooms. Moreover, during bi-monthly staff birthday celebrations, the Company promotes the use of personal tableware and cutlery to implement environmental protection policies effectively and is committed to promoting energy conservation and carbon reduction initiatives.
		(4) A. Statistics for the Recent Two Fiscal Years are as follows:
			Year	Greenhouse Gas Emissions
				2024
				2025

Assessment Item	Yes	Implementation Status
		Summary
management policies?		B. Starting from 2024, the Company has been actively studying and managing greenhouse gas emissions, water usage, and total waste weight. We have formulated policies for greenhouse gas reduction, water conservation, and waste management, with the participation of all employees in energy conservation and carbon reduction activities. Through these efforts, we aim to demonstrate our care for the environment and ensure the sustainable coexistence of our business and the environment.
4. Social Topic
(1) Does the Company set policies and procedures in compliance with regulations and internationally recognized human rights principles?	☑	(1) The Company adheres to relevant labor laws and respects the implementation of internationally recognized basic labor rights conventions. We safeguard the legitimate rights and interests of employees and ensure equal treatment in employment policies. We have formulated employee work rules and regularly hold labor-management meetings, with all execution details being recorded.	(1) There is no significant difference.
(2) Has the Company established appropriately managed employee welfare measures (include salary and compensation, leave and others), and link operational performance or achievements with employee salary and compensation?	☑	(2) The Company has established reasonable salary and performance management policies under the "Managerial Compensation and Performance Management Measures" and "Employee Compensation Disbursement Measures". We conduct annual employee performance evaluations and appropriately reflect the performance evaluation results in employee compensation.	(2) There is no significant difference.
(3) Does the Company provide employees with a safe and healthy working environment, with regular safety and health training?	☑	(3) The Company regularly conducts employee health checks and fire drill management promotion to enhance the environmental safety and health performance within the premises. Through continuous education, training, and advocacy, we aim to cultivate employees' emergency response capabilities and instill	(3) There is no significant difference.

Assessment Item	Yes	Implementation Status	Non-implementation and Its Reason(s)
(4) Has the Company established effective career development training plans?	☑	correct safety concepts. Additionally, we strengthen employees' cognitive abilities to reduce the occurrence of accidents caused by unsafe behavior.	(4) There is no significant difference.
		(4) The Company implements internal and external training courses for employees every year to enhance individual professional skills.
(5) Does the Company’s product and service comply with related regulations and international rules for customers’ health and safety, privacy, sales, labelling and set policies to protect consumers’ or customers’ rights and consumer appeal procedures?	☑	(5) The Company strictly adheres to and implements relevant regulations and international standards. Additionally, we have set up a customer service center on our company website to provide consumers with comprehensive and efficient service quality.	(5) There is no significant difference.
(6) Does the Company set supplier management policy and request suppliers to comply with related standards on the topics of environmental, occupational safety and health or labor right, and their implementation status?	☑	(6) The Company evaluates potential suppliers' past records of social and environmental impact during the supplier selection process. Upon contract signing, the Company incorporates provisions that allow for the termination or cancellation of the contract if the supplier engages in activities that violate corporate social responsibility or have a significant negative impact on the environment or society.	(6) There is no significant difference.
5. Does the Company refer to international reporting rules or guidelines to publish Sustainability Report to disclose non-financial information of the Company? Has the said Report acquire third party verification or statement of assurance?	☑	The 2024 Xunying Optoelectronics Sustainability Report was prepared in accordance with the GRI Standards as required under the Regulations Governing the Preparation and Filing of Sustainability Reports by Listed Companies. This Report fully discloses Xunying Optoelectronics’ policy commitments and concrete performance outcomes in the promotion of sustainability across the three ESG dimensions—Environmental, Social, and Governance. The content covers five major pillars: corporate governance, industry and value chain, sustainable operations, environmental sustainability, and employee care, elaborating on the strategies adopted, actions	There is no significant difference.

Assessment Item	Yes	No	Implementation Status	Non-implementation and Its Reason(s)
			implemented, and continuous improvement efforts in each aspect. Incorporating feedback obtained through stakeholder engagement, the Report demonstrates Xunying Optoelectronics’ proactive assumption of corporate sustainability responsibility and its steadfast commitment to practicing sustainable development.
6. If the Company has established its sustainable development code of practice according to "Listed Companies Sustainable Development Code of Practice," please describe the operational status and differences: The Company has formulated the "Sustainable Development Committee Charter". There is no material difference between its operation and the prescribed charter.
7. Other important information to facilitate better understanding of the Company's implementation of sustainable development: The Company fulfills its corporate social responsibility by participating in various humanitarian and charitable activities, including donations and sponsorship:
(1) Donation of hearing aids through Broadcasting Corporation charity sale.
(2) Contribution to the Table Tennis Committee of the Nantou County Sports Association.
(3) Donation of character education teaching materials to Shuoyuan Elementary School and Qingcaohu Elementary School in Hsinchu City.
(4) Contribution to the fundraising project for disaster relief at Matai’an Creek landslide lake in Hualien.

(8) Corporate Conduct and Ethics Implementation Status as Required by Taiwan Financial Supervisory Commission

Assessment Item	Yes	Implementation Status	Causes for the Difference
		Summary
1. Establishment of Corporate Conduct and Ethics Policy and Implementation Measures
(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?	☑	(1) The Board of Directors has established the "Ethical Corporate Management Best Practice Principles" and "Procedures for Ethical Management and Guidelines for Conduct", and the policy of integrity operations is explicitly stated in external documents. The Board of Directors and management actively implement these policies. On January 3, 2025, the internal personnel of the company completed the signing of the "Commitment Statement for Integrity Operations Policy", and as of March 31, 2026, all employees have completed the signing of the 'Statement of Commitment to Integrity Management Policy,' with a total of 90 signatories, achieving a 100% signing rate.	(1) There is no significant difference.
(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/TPEx Listed Companies?	☑	(2) The Company has established the Ethical Corporate Management Best Practice Principles, Procedures for Ethical Management and Guidelines for Conduct, and Whistleblowing Procedures for Fraudulent Activities. These documents clearly define the channels and procedures for reporting complaints and are implemented and promoted effectively. In cases of violations, appropriate disciplinary actions are taken in accordance with the Company's regulations.	(2) There is no significant difference.
(3) Whether the company has established relevant policies that are duly enforced to prevent unethical conduct, provided implementation procedures, guidelines, consequences of violation and complaint procedures, and	☑	(3) The Company has established the 'Procedures and Code of Conduct for Integrity Management' to regulate corporate behavioral standards. In accordance with the relevant regulations, the Company provides related training to employees and periodically reports the implementation status to the Board of Directors.	(3) There is no significant difference.
(4) Whether the company has established a policy that is based on the legal and ethical standards of the company, and the legal and ethical standards of the company, to be used in the public health and safety of the company?	☑	(4) The Company has established the 'Procedures and Code of Conduct for Integrity Management' to regulate the legal and ethical standards of the company, and the legal and ethical standards of the company, and the legal and ethical standards of the company's policies.	(4) There is no significant difference.

| Assessment Item
periodically reviews and revises such policies? | Yes | No | Implementation Status | | Causes for the Difference |
| --- | --- | --- | --- | --- | --- |
| | | | Summary | | |
| 2. Ethic Management Practice
(1) Whether the company has assessed the ethics records of whom it has business relationship with and include business conduct and ethics related clauses in the business contracts? | ☑ | | (1) The Company includes clauses regarding ethical conduct in all commercial contracts to prevent any dishonest conduct. | | (1) There is no significant difference. |
| (2) Whether the company has set up a unit which is dedicated to promoting the company’s ethical standards and regularly (at least once a year) reports directly to the Board of Directors on its ethical corporate management policy and relevant matters, and program to prevent unethical conduct and monitor its implementation? | | ☑ | (2) The Company’s Human Resources Department is responsible for promoting integrity management operations, including the formulation and implementation of relevant policies. The Audit Office supervises the execution status, and the Company reports annually to the Board of Directors on the implementation of integrity management. | | (2) There is no significant difference. |
| (3) Whether the company has established policies to prevent conflict of interests, provide appropriate communication and complaint channels and implement such policies properly? | ☑ | | (3) The Company has established relevant preventive policies and provides various reporting channels to enable employees to submit information at any time. The information is consolidated by designated personnel and periodic reports on the operational status are submitted. | | (3) There is no significant difference. |
| (4) To implement relevant policies on ethical conducts, has the company established effective accounting and internal control systems, audit plans based on the assessment of unethical conduct, and have its ethical conduct program audited by internal auditors or CPA periodically? | ☑ | | (4) The Company has established effective accounting and internal control systems, which are regularly audited by internal audit personnel. | | (4) There is no significant difference. |
| (5) Does the company provide internal and | ☑ | | (5) The Company conducts internal training programs on integrity | | (5) There is no |

Assessment Item external ethical conduct training programs on a regular basis?	Yes	Implementation Status	Causes for the Difference significant difference.
		Summary management issues on a regular annual basis. In fiscal year 2025, a total of 90 employees participated in integrity management training courses, achieving a training coverage rate of 100%
3. Implementation of Complaint Procedures (1) Does the company establish specific complaint and reward procedures, set up conveniently accessible complaint channels, and designate responsible individuals to handle the complaint received? (2) Whether the company has established standard operation procedures for investigating the complaints received, follow-up measures after investigation are completed, and ensuring such complaints are handled in a confidential manner? (3) Does the company adopt proper measures to prevent a complainant from retaliation for his/her filing a complaint?	✓	(1) The Company has established a reporting system under the Ethical Corporate Management Best Practice Principles and Whistleblowing Procedures for Fraudulent Activities, providing information on the reporting channels, procedures, and response methods. (2) The Company has established a whistleblowing mailbox, and all related documents and information are treated as confidential. If any illegal activities violating the ethic managements are discovered, employees can file complaints or reports to the internal audit department of the company. Upon verification, if found to be true, appropriate disciplinary actions will be taken in accordance with internal regulations and relevant laws. (3) The Company has explicitly stipulated in the Whistleblowing Procedures for Fraudulent Activities that confidentiality and anonymity will be protected to ensure the confidentiality of the identities of suppliers and employees who report wrongdoing.	(1) There is no significant difference. (2) There is no significant difference. (3) There is no significant difference.
4. Information Disclosure Does the company disclose its guidelines on business ethics as well as information about implementation of such guidelines on its website and Market Observation Post System ("MOPS")?	✓	The Company has disclosed the Ethical Corporate Management Best Practice Principles and Procedures for Ethical Management and Guidelines for Conduct on its company website and MOPS.	There is no significant difference.
5. If the company has its own code of conduct based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe the operation and any differences from the established guidelines: The Company has formulated the “Ethical Corporate Management Best Practice Principles”. There is no material difference between its operation and the prescribed principles.
6. Other important information to facilitate better understanding of the company's corporate conduct and ethics compliance practices (e.g., review the company's

Assessment Item	Yes	No	Implementation Status		Causes for the Difference
corporate conduct and ethics policy): The Company complies with the Company Act, the Securities and Exchange Act, the Business Entity Accounting Act, relevant regulations for TWSE/TPEx Listed Companies, and other laws and regulations related to business practices as the basis for ethic management practices.

(9) Other important information that enhances understanding of the company's corporate governance operations::

① Inquiry methods for the Company's corporate governance rules and related regulations: Please refer to the Company's website (http://www.okbiotech.com) for more information.

② Directors' Training Status (in 2025)

Title	Name	Training Date	Sponsor	Program Appellation	Training Hours
Corporate Chairman Representative	Lai, Chia-De	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Vice Chairman	Liu, Yu-Tzu	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Corporate Director, Representative	Chen, Chin-Piao (Note)	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Corporate Director, Representative	Wang, Zhen-Gang (Note)	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Corporate Director, Representative	Hsu, Chin-Yuan	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Director	Lan, Shi-Wan	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				ChatGPT Reverses New Trends in the Industry	3 hours
Director	Hou, Chi-Cheng (Note)	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Independent Director	Lin, Shih-Yi	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Independent Director	Chen, Ku-Chuan	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Independent Director	Ho, Li-Fen	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours
Independent Director	Lu, Ching-Chun	August 11, 2025	Securities and Futures Institute (SFI Taiwan)	Development Trends and Business Opportunities in Advanced Semiconductor Packaging	3 hours
				In-Depth Analysis of Advanced Process Technologies: TSMC's Competitive Strategies and Market Development	3 hours

Note: New directors shall pursue further study of 12 hours.
③ Information on the Company's purchase of liability insurance for directors and managers:

Insured Party	Insurance Company	Coverage Amount	Coverage Period
All directors and managers	Shinkong Insurance Company, Ltd.	5 million (US Dollars)	March 15, 2026~March 15, 2027

(10) Implementation Status of Internal Control System

① Statement of Internal Control

OK Biotech Co., Ltd.

Statement of Internal Control

Date: March 10, 2026

Based on the findings of a self-assessment, the Company states the following with regard to its internal control system during the year 2025:

The Company is well aware that establishing, implementing, and maintaining an internal control system is the responsibility of the Board of Directors and management, and we have established such a system. The purpose is to achieve the objectives of operational effectiveness and efficiency (including profitability, performance, and safeguarding of assets), reliable reporting, timeliness, transparency, and compliance with relevant regulations and laws, providing reasonable assurance.
Internal control systems have inherent limitations. Regardless of how well-designed they are, an effective internal control system can only provide reasonable assurance of achieving the above three objectives. Moreover, the effectiveness of internal control systems may change due to changes in the environment and circumstances. However, the Company's internal control system has a self-monitoring mechanism. Once a deficiency is identified, corrective action is taken promptly.
The effectiveness of the internal control system is assessed based on the criteria specified in the "Regulations Governing Establishment of Internal Control Systems by Public Companies" (hereinafter referred to as the "Regulations"). The internal control system judgment criteria adopted in the Regulations divide the internal control system into five components: 1. Control Environment, 2. Risk Assessment, 3. Control Activities, 4. Information and Communication, and 5. Monitoring Activities. Each component includes several items. Please refer to the provisions of the "Regulations" for the aforementioned items.
The Company has adopted the above internal control system judgment criteria to assess the effectiveness of the design and implementation of the internal control system.
Based on the assessment results, we believe that the Company's internal control system (including supervision and management of subsidiaries) as of December 31, 2025, including the understanding of the degree of achievement of operational effectiveness and efficiency objectives, reliable and timely reporting, transparency, and compliance with relevant regulations and laws, is effectively designed and implemented, reasonably ensuring the achievement of the above objectives.
This statement will become the main content of the Company's annual report and public offering prospectus and will be made public. If the above information is found to be false, concealed, or involved in any illegal activities, it will incur legal liabilities under Article 20, Article 32, Article 171, and Article 174 of the Securities Exchange Act.
This statement was approved by the Board of Directors of the Company on March 10, 2026. Among the 11 directors present, 0 opposed, and all agreed to the content of this statement.

OK Biotech Co., Ltd.

Chairman and General Manager: LAI, CHIA-DE

② If CPA Was Engaged to Conduct a Special Audit of Internal Control System, Provide Its Audit Report: None.

(11) In the latest fiscal year and up to the date of printing of the annual report, if the company and its insiders were punished by law, or if the company punished its insiders for violating the internal control system regulations, and the punishment results may have a significant impact on shareholder equity or security prices, the details of the punishment, major deficiencies, and improvement measures shall be specified: None.

(12) Major resolutions of the Shareholders' Meeting and Board of Directors in the latest fiscal year and up to the date of printing of the annual report and their implementation status:

① Major resolutions of annual shareholders' meeting and their implementation status:

Date of Major Resolution	Content of Major Resolution	Implementation Status
June 3, 2025
(Annual Shareholders’ Meeting)	Recognized the business report and financial statements (consolidated and parent company only) for the year ended December 31, 2024.	The voting result for this motion has been approved as per the original proposal. The relevant statements have been filed with the competent authorities in accordance with the Company Act and other relevant laws and regulations for record and announcement.
	Recognized the earning distribution for the year ended December 31, 2024.	The voting result for this motion has been approved as per the original proposal. The cash dividend of NT$0.3 per share was distributed; the ex-dividend date was July 12, 2025, and the payment date was July 30, 2025.
	Proposed amendments to certain articles of the Company's "Articles of Incorporation."	The voting result for this motion has been approved as per the original proposal. The registration of the change was completed on August 4, 2025.

② Major resolutions of the Board of Directors:

Date of Major Resolution	Content of Major Resolution
March 11, 2025	(1) Approved the distribution of the employees' compensation and directors' remuneration for the year ended December 31, 2024.
(2) Approved the business report and financial statements (consolidated and parent company only). for the year ended December 31, 2024.
(3) Approved the earning distribution for the year ended December 31, 2024.
(4) Approved the "Internal Control System Statement" for the year ended December 31, 2024.
(5) Approved changing of the Company's Certified Public Accountant.
(6) Approved assessment of independence and suitability of the Certified Public Accountant for the year ended December 31, 2025.
(7) Approved appointment and compensations of Certified Public Accountant for the financial statement of the year ended December 31, 2025.
(8) Approved to provide endorsement guarantees by the Company to the subsidiary.
(9) Approved the reinvestment in subsidiaries.
(10) Approved the bank loan limit.
(11) Approved the amendment to Certain Provisions of the Company's "Articles of Incorporation."
(12) Resolution to Approve the Case Regarding the Handling of Accounts Receivable from Customer A.
(13) Approved the date, location, agenda, and proposals for the company's 2024 Annual Shareholders Meeting.

	(14) Approved the Company's 2024 Annual Shareholders Meeting to accept written proposals from shareholders holding 1% or more of the shares.
April 10, 2025	(1) Resolution to Approve the First Share Repurchase of the Company in Fiscal Year 2025.
May 8, 2025	(1) Approved the financial statement for the first quarter of 2025.
(2) Approved the bank loan limit.
(3) Approved the distribution of the compensation for the Company's General Manager, Vice General Manager, First-level Supervisors, and Finance and Accounting Supervisor for the year ended December 31, 2024.
(4) Resolution to Approve the Cancellation of Issued Restricted Employee Shares Due to Employee Resignation.
August 11, 2025	(1) Approved the financial statement for the second quarter of 2025, which has been completed accordingly.
(2) Resolution to Approve the Second Grant of Restricted Employee Shares and the Issuance of New Shares for Fiscal Year 2023.
(3) Resolution to Approve the Company's 2024 Sustainability Report.
(4) Resolution to Approve the Allocation of Directors' Remuneration for Fiscal Year 2024.
(5) Resolution to Approve the Cancellation of Issued Restricted Employee Shares Due to Employee Resignation.
(6) Resolution to Approve the Establishment of the Capital Reduction Reference Date for the First Share Repurchase and Cancellation in Fiscal Year 2025.
(7) Resolution to Approve the Authorization of the Chairman by the Board of Directors to Execute the Sale of the Company's Plant No. 2 Facility.
August 21, 2025	(1) Resolution to Approve the Second Share Repurchase of the Company in Fiscal Year 2025.
November 7, 2025	(1) Approved the financial statement for the third quarter of 2025.
(2) Resolution to Approve the Rotation of the Company's Certifying Accountants.
(3) Approved assessment of independence and suitability of the Certified Public Accountant for the year ended December 31, 2026.
(4) Approved appointment and compensations of Certified Public Accountant for the financial statement of the year ended December 31, 2026.
(5) Approved the operational plan for 2026.
(6) Approved the budget for 2026.
(7) Approved the Internal audit plan for 2026.
(8) Resolution to Approve the Definition of the Scope of the Company's ‘Basic-Level Employees’ and the Partial Amendments to the Internal Control System.
(9) Resolution to Approve the Provision of Endorsement and Guarantee by the Company for its Subsidiary.
(10) Approved the application for bank loan limit of the Company.
(11) Resolution to Approve the Engagement of Certifying Accountants and Non-Assurance Services from the Affiliated Firm.
(12) Resolution to Approve the Disposal of Real Estate.
(13) Approved the Company's incentive scheme for the General Manager, Vice General Manager, First-level Supervisors, and Finance and Accounting Supervisor for the year ended December 31, 2025.
(14) Resolution to Approve the Cancellation of Issued Restricted Employee Shares Due to Employee Resignation.”
(15) Resolution to Approve the Establishment of the Capital Reduction Reference Date for the Second Share Repurchase and Cancellation in Fiscal Year 2025.
March 10, 2026	(1) Approved the distribution of the Directors' Remuneration and the Employees' Compensation for 2025.
(2) Approved the business report and financial statements (consolidated and parent company only). for 2025.
(3) Approved the earning distribution for 2025.
(4) Resolution to Approve the Cash Capital Reduction.
(5) Approved the "Internal Control System Statement" for the year ended December 31, 2025.
(6) Approved the application for bank loan limit of the Company.
(7) Resolution to Approve the Evaluation of the Scope of Basic-Level Employees.
(8) Approved the date, location and agenda for the Company's 2026 Annual Shareholders' Meeting.

	(9) Approved the 2026 Annual Shareholders Meeting to accept written proposals from shareholders holding 1% or more of the shares.
March 24, 2026	(1) Resolution to Approve the Provision of Endorsement and Guarantee by the Company for its Subsidiary.

(13) Major Issues of Record or Written Statements Made by Any Director or Supervisor Dissenting to Important Resolutions Passed by the Board of Directors in 2024 and as of the Date of this Annual Report: None.

(14) Resignations and Terminations of the Chairman, General Manager, Accounting Manager, Finance Manager, Internal Audit Manager, Corporate Governance Manager and R&D Manager During the 2025 and as of the Date of this Annual Report: None.

4. Information on the Certified Public Accountant's Compensation:

(1) Information on the auditor:

Name of Accounting Firm	Auditor's Name		Audit Period	Note
Pwc Taiwan	Chiang Tsai-Yen	Jiang Cheng-Han	2025

(2) Information on the auditor's compensation:

Unit: in Thousands of New Taiwan Dollars

Name of Accounting Firm	Auditor's Name	Audit Period	Audit Fee	Non-audit Fee	Total
Pwc Taiwan	Chiang Tsai-Yen	For the year ended December 31, 2025	3,500	-	3,500
	Jiang Cheng-Han
Pwc Taiwan	Lin, Yu-Kuan	For the year ended December 31, 2025	-	100	100

(3) If the non-audit fee paid to the auditors, their firms or their affiliated enterprises exceeds one-fourth of the audit fee, the amount and content of the non-audit service should be disclosed: None.

(4) If the audit fee paid for the current year after changing the accounting firm is reduced compared to the audit fee of the previous year, the amount and reason for the reduction of the audit fee before and after the change should be disclosed: None.

(5) If the audit fee decreases by more than 10% compared to the previous year, the amount, proportion, and reasons for the decrease should be disclosed: None.

5. Information on Change of Auditor

(1) About former accountants

Date of change	November 7, 2025
Reason and explanation of change	Due to the restructuring of the internal operations of Pwc Taiwan, the original accountants Chiang Tsai-Yen and Jiang Cheng-Han were changed to accountants Jiang Cheng-Han and Sie Jhih-Jheng starting from the first quarter of 2026.
Explanation of termination or non-acceptance of appointment of appointor or accountant	Parties Involved Situation		Accountant	Appointor
	Active termination of appointment		(N/A)	(N/A)
	Non-acceptance of (further) appointment		(N/A)	(N/A)
Opinions and reasons for issuing the audit report other than unqualified opinions within the last two years	None.
Disagreement with the Issuer	Yes		Accounting principles and practices
			Disclosure of financial statements
			Audit scope or procedures
			Other
	None.	✓
	Explanation
Other disclosures (Matters to be disclosed under Article 10, Subparagraph 6, Item 1-4 to Item 1-7 of these Standards)	None.

(2) About successor accountants

Firm Name	Pwc Taiwan
Auditor's Name	Accountant Chiang Cheng-Han and Sie Jhih-Jheng Accountant
Date of Appointment	November 7, 2025
Consultations and results regarding accounting treatment or accounting principles for particular transactions and opinions that might have been issued on financial statements prior to appointment	None.
Successor accountants’ written opinions on different opinions from former accountants	None.

(3) Former accountant's response to matters in Article 10, Subparagraph 6, Items 1 and 2-3 of these standards: None.

Information Regarding Company's Chairman, General Manager, and Managers Responsible for Finance or Accounting Affairs Who Have Served in the 2024 in the Auditor's Firm or the Subsidiaries: None.
Transfer of Shareholding and Changes in Equity Pledges by Directors, Supervisors, Managers, and Shareholders Holding Over 10% of the Shares During the 2024 and as of the Date of this Annual Report:

(1) Changes in Shareholding and Share Pledge by Directors, Managers, and Shareholders holding over 10% of the Shares

① Transfer of Shareholding and Changes in Equity Pledges by Directors, Supervisors, Executives, and Shareholders Holding Over 10% of the Shares:

Unit: in Shares

Title	Name	2024		2025		As of April 30, 2026
		Net Change in Shares Held	Net Change in Shares Pledged	Net Change in Shares Held	Net Change in Shares Pledged	Net Change in Shares Held	Net Change in Shares Pledged
Chairman and General Manager	Shang-Shun Development Co., Ltd. Representative: Lai, Chia-De	0	2,00,000	0	61,000	0	0
		119,940	0	13,129	0	0	0
Vice Chairman and Special Assistant to General Manager	Liu, Yu-Tzu	22,754	0	13,186	0	83,793	0
Director	He Chun Investment Co., Ltd. Representative: Chen, Chin-Piao	0	0	0	0	0	0
		0	0	0	0	0	0
Director	Ting-Fa Investment Co., Ltd. Representative: Wang, Zhen-Gang	0	0	0	0	0	0
		0	0	0	0	0	0
Director	Bei Xi Co., Ltd. Representative: Xu, Jin-Yuan	0	0	0	0	0	0
		0	0	0	0	0	0
Director	Lan, Shi-Wan	0	0	0	0	0	0

Title	Name	2024		2025		As of April 30, 2026
		Net Change in Shares Held	Net Change in Shares Pledged	Net Change in Shares Held	Net Change in Shares Pledged	Net Change in Shares Held	Net Change in Shares Pledged
Finance and Accounting Supervisor and Corporate Governance Manager and Director	Hou, Chi-Cheng	17,679	0	(10,994)	0	0	0
Independent Director	Lin, Shih-Yi	0	0	0	0	0	0
Independent Director	Ho, Li-Fen	0	0	0	0	0	0
Independent Director	Chen, Ku-Chuan	0	0	0	0	0	0
Independent Director	Lu, Ching-Chun	0	0	0	0	0	0
Assistant Manager of R&D Department	Li, An-Yuan	15,018	0	11,608	0	0	0
Manager of QC Department	Kei, I-Chen	8,849	0	(9,000)	0	0	0
Manager of Manufacturing Department(Note 1)	Sie,Wun-Bin	NA	NA	5,000	0	8,075	0

Note 1: Assumed Office on October 1, 2025.

② Information on Related Parties of Directors, Supervisors, Managers, and Shareholders Who Have Transferred Their Shareholding by More Than 10% of the Total Shares:

As of April 25, 2025; Unit: in Shares

Name	Reason for Share Transfer	Transaction Date	Counterparty	Relationship Between Related Parties and the Company, Directors, Supervisors, and Shareholders Holding More than 10% of the Shares	Shares	Transaction Price
Liu, Yu-Tzu	Inheritance	January, 2026	Jang,Jhih-Si	First Degree of Kinship	83,793	NA

③ Information on Related Parties for Counterparties' Stock Pledging: None.

Information on the Top Ten Shareholders Who Hold a Percentage of Shares, and Their Relationships With Each Other Or with Spouses, Or Relatives Within the Second Degree of Kinship

As of April 30, 2026; Unit: in Shares; %

Name	Shares Held		Shares Held by Spouse & Minors		Shares Held under Another Individual		Name and Relationship between the Company'S Shareholders		Note
	Shares	Shareholding Percentage (%)	Shares	Shareholding Percentage (%)	Shares	Shareholding Percentage (%)	Name	Relationship
He Chun Investment Co., Ltd.	6,852,373	4.73	0	0	0	0	Chen, Chin-Piao	Spouse	-
Responsible Person: Chen Liao, Shu-Ying	1,664,228	1.15	0	0	0	0
Even Development Limited	6,473,006	4.41	0	0	0	0	Wang, Yung-Shun	First Degree of Kinship	-
Responsible Person: Wang Shao-Chun	93,221	0.06	0	0	0	0	Wang Shao-I	Second Degree of Kinship	-
Ting-Fa Investment Co., Ltd.	6,389,720	4.34	0	0	0	0	Wang, Yung-Shun	First Degree of Kinship	-
Responsible Person: Wang Shao-I	246,333	0.17	0	0	0	0	Wang Shao-Chun	Second Degree of Kinship	-
Trust Account Entrusted to CTBC	3,570,000	2.47					None.	None.	-
Wu Shun Investment Co., Ltd.	3,453,386	2.38	0	0	0	0	Hsu, Chin-Yuan	Spouse	-
Responsible Person: Wang, Jung-Jo	0	0	0	0	0	0
Hao Want Co., Ltd.	3,313,421	2.29	0	0	0	0	None.	None.	Note
Responsible Person: Lai, Chia-De	269,936	0.19	81,793	0.06	5,374,465	3.71
Wang, Yung-Shun	2,579,009	1.78	0	0	0	0	Wang Shao-I	First Degree of Kinship	-
							Wang Shao-Chun	First Degree of Kinship	-
Microlife USA, Inc.	2,280,662	1.57	0	0	0	0	None.	None.	-
Shang-Shun Development Co., Ltd.	2,061,044	1.42	0		0	0	None.	None.	Note
Responsible Person: Lai, Chia-De	269,936	0.19	81,793	0.06	5,374,465	3.65
Bei Xi Co., Ltd.	1,958,000	1.35	0	0	0	0	Wang, Jung-Jo	Spouse	-
Responsible Person: Xu, Jin-Yuan	0	0	0	0	0	0

Note: Mr. Lai Jia-de's investment company, Hao Want Co. Ltd., holds 3,313,421 shares, and Shang Shun Development Co., Ltd. holds 2,061,044 shares, totaling 5,374,465 shares.

Shares Held by the Company, its Directors, Supervisors, Managers, and Businesses Controlled Directly or Indirectly by the Company, in the Same Investee Company, and the Aggregate Ownership Percentage Calculated on a Consolidated Basis

Comprehensive Shareholding Percentage
As of December 31, 2025; Unit: in Shares

Investee Company	The Company’s Investment		Directors, Supervisors, and Managers Who Directly or Indirectly Control the Invested Enterprise		Comprehensive Investment
	Shares	Shareholding Percentage	Shares	Shareholding Percentage	Shares	Shareholding Percentage
Prodigy Diabetes Care, LLC	Note	72.50%	-	-	Note	72.50%
Pu Yuan Biotech Co., Ltd.	5,089,584	60.05%	-	-	5,089,584	60.05%
Aeon Diagnostic Technology Corporation	3,923,490	71.95%	-	-	3,923,490	71.95%
OK Biotech Pte. Ltd.	500,000	100.00%	-	-	500,000	100.00%

Note: No shares were issued.

III. Fundraising Situation

Capital and Share

(1) Type of Shares

April 7, 2026

Type of Shares	Authorized Capital			Note
	Outstanding Shares (Note)	Unissued Shares	Total
Registered Common Shares	144,814,164 shares	155,185,836 shares	300,000,000 shares	Listed Company Stock

Note: Based on the total number of issued shares of 144,814,164 shares as of the record date of the shareholders' meeting on April 7, 2026 (including 120,000 shares of restricted stock awards that had been withdrawn for cancellation but had not yet been registered for change as of the printing date).

① Formation process of share capital

A. Changes in share capital over the past five years and up to the printing date of the prospectus

Unit: in Thousand of Shares; in Thousand of Dollar

Month & Year	Issue Price	Authorized Capital		Paid-in Capital Share		Note
		Shares	Amount	Shares	Amount	Type of Shares	Offsetting Stock Payments with Non-cash Assets	Other
Jan. 2020	10	100,000	1,000,000	75,426	754,261	Cancellation of 24 thousand shares of newly issued restricted stock awards. 3,195 thousand shares converted from convertible bonds into common share.	None.	Note 1
Apr. 2020	10	100,000	1,000,000	79,434	794,337	813 thousand shares converted from convertible bonds into common share.	None.	Note 2
Jun. 2020	10	300,000	3,000,000	79,434	794,337	The authorized capital of NT$3 billion was approved by the Annual Shareholders' Meeting in 2020.	None.	Note 3
Aug. 2020	10	300,000	3,000,000	94,934	949,337	15,500 thousand shares issued through cash capital increase.	None.	Note 4
Nov. 2022	10	300,000	3,000,000	95,919	959,195	985 thousand shares converted from convertible bonds into common share.	None.	Note 5
Mar. 2023	10	300,000	3,000,000	100,393	1,003,934	The conversion of convertible bonds into common shares amounted to 3,583 thousand shares, and the issuance of new shares for employee compensation totaled 891 thousand shares.	None.	Note 6
Apr. 2023	10	300,000	3,000,000	114,869	1,148,692	14,476 thousand shares converted from convertible bonds into common share.	None.	Note 7
Oct. 2023	10	300,000	3,000,000	128,908	1,289,080	The conversion of convertible bonds into common shares amounted to 2,023 thousand shares, and the issuance of new shares for capitalization of earnings totaled 12,016 thousand shares.	None.	Note 8
Oct. 2023	10	300,000	3,000,000	140,908	1,409,080	The issuance of new shares through cash capital increase amounted to 12,000 thousand shares.	None.	Note 9

Month & Year	Issue Price	Authorized Capital		Paid-in Capital Share		Note
		Shares	Amount	Shares	Amount	Type of Shares	Offsetting Stock Payments with Non-cash Assets	Other
Dec. 2023	10	300,000	3,000,000	145,668	1,456,680	The conversion of convertible bonds into common shares amounted to 760 thousand shares, along with the issuance of 4,000 thousand shares of restricted stock awards.	None.	Note 10
Apr. 2024	10	300,000	3,000,000	145,769	1,457,690	101 thousand shares converted from convertible bonds into common share.	None.	Note 11
Apr. 2024	10	300,000	3,000,000	147,003	1,470,030	1,234 thousand shares converted from convertible bonds into common share.	None.	Note 12
Jul. 2024	10	300,000	3,000,000	146,958	1,469,580	Cancellation of 45 thousand shares of newly issued restricted stock awards	None.	Note 13
Oct. 2024	10	300,000	3,000,000	147,059	1,470,590	Cancellation of 45 thousand shares of newly issued restricted stock awards	None.	Note 14
Aug. 2025	10	300,000	3,000,000	146,964	1,469,640	Cancellation of 95,000 shares Issued Restricted Employee Shares.	None.	Note 15
Sept. 2025	10	300,000	3,000,000	146,059	1,460,590	Second Grant of Restricted Employee Shares and Issuance of 175,000 shares New Shares for Fiscal Year 2023. Cancellation of 80,000 shares Issued Restricted Employee Shares. Capital Reduction through the Cancellation of 1,000,000 Treasury Shares.	None.	Note 16
Nov. 2025	10	300,000	3,000,000	144,814	1,448,140	Cancellation of 245,000 shares Issued Restricted Employee Shares. Capital Reduction through the Cancellation of 1,000,000 Treasury Shares.	None.	Note 17

Note 1: Approval granted under Letter of Ministry of Economic Affairs No. 10901005050 on January 31, 2020.
Note 2: Approval granted under Letter of Ministry of Economic Affairs No. 10901057870 on April 10, 2020.
Note 3: Approval granted under Letter of Ministry of Economic Affairs No. 10901102480 on June 11, 2020.
Note 4: Approval granted under Letter of Ministry of Economic Affairs No. 10901161280 on August 31, 2020.
Note 5: Approval granted under Letter of Ministry of Economic Affairs No. 11101227300 on November 29, 2022.
Note 6: Approval granted under Letter of Ministry of Economic Affairs No. 11230043760 on March 21, 2023.
Note 7: Approval granted under Letter of Ministry of Economic Affairs No. 11230066660 on April 26, 2023.
Note 8: Approval granted under Letter of Ministry of Economic Affairs No. 11230185700 on October 12, 2023.
Note 9: Approval granted under Letter of Ministry of Economic Affairs No. 11230199910 on October 25, 2023.
Note 10: Approval granted under Letter of Ministry of Economic Affairs No. 11230228050 on December 8, 2023.
Note 11: Approval granted under Letter of Ministry of Economic Affairs No. 11330050070 on April 9, 2024.
Note 12: Approval granted under Letter of Ministry of Economic Affairs No. 11330067420 on April 30, 2024.
Note 13: Approval granted under Letter of Ministry of Economic Affairs No. 11330104220 on July 1, 2024.
Note 14: Approval granted under Letter of Ministry of Economic Affairs No. 11330162450 on October 7, 2024.
Note 15: Approval granted under Letter of Ministry of Economic Affairs No. 11430090890 on August 4, 2025.
Note 16: Approval granted under Letter of Ministry of Economic Affairs No. 11430139840 on September 18, 2025.
Note 17: Approval granted under Letter of Ministry of Economic Affairs No. 11430185930 on November 24, 2025.

② Summary of private placement of common shares in the past three years and as of the date of this prospectus printing: None.
③ Summary of declared new stock issuance: None.

(2) Major Shareholders

Shareholders holding more than 5% of the total shares or ranking among the top ten shareholders, their names, shareholding amounts, and percentages:

April 5, 2025

Shareholders	Shareholdings	Investment Holding (%)
He Chun Investment Co., Ltd.	6,852,373	4.73%
Even Development Limited	6,473,006	4.47%
Ting-Fa Investment Co., Ltd.	6,389,720	4.41%
Trust Account Entrusted to CTBC	3,840,000	2.47%
Wu Shun Investment Co., Ltd.	3,453,386	2.38%
Hao Want Co., Ltd.	3,313,421	2.29%
Wang, Yung-Shun	2,579,009	1.78%
Microlife USA, Inc.	2,280,662	1.57%
Shang-Shun Development Co., Ltd.	2,061,044	1.42%
Bei Xi Co., Ltd.	1,958,000	1.35%

(3) Company's Dividend Policy and Implementation Status

① Dividend Policy as Stipulated in the Company's Articles of Incorporation:

A. If the Company generates profits at the end of the fiscal year, apart from setting aside provisions for income tax, it shall first offset any accumulated losses from previous years. Subsequently, 10% of the remaining balance shall be allocated to the statutory surplus reserve, unless the legal capita; surplus reserve has already reached the amount of the Company's paid-in capital, in which case this requirement does not apply. Additionally, allocations or reversals to special reserves shall be made in accordance with laws or regulations stipulated by regulatory authorities. If there are still profits remaining after these allocations, the Board of Directors shall prepare a resolution for distribution.

B. The Company is currently in a stage of corporate growth. Its dividend policy takes into account factors such as the company's investment capital needs, financial surplus, among others, to maintain a balanced and stable dividend policy. Cash dividends shall not be less than 10% of the total dividends distributed.

C. In accordance with the above-mentioned articles, the Board of Directors, in line with the Company's financial business development goals and plans, and barring any other special circumstances, aims to distribute dividends based on the principle of distributing at least 50% of the net profit after tax for the current year.

② Dividend Distribution:

A. In accordance with Article 26-1 of the Company's Articles of Incorporation, the Board of Directors is authorized to decide, with the attendance of two-thirds or more of the directors and the consent of the majority of the directors present, to distribute all or part of the dividends and bonuses in the form of cash, without the need for a resolution by the Shareholders' Meeting. This decision shall be reported to the shareholders' meeting. The provisions of the Articles of Incorporation regarding resolutions of the shareholders' meeting do not apply.

B. The Board of Directors is also authorized, in accordance with the Company's Articles of Incorporation, to decide, with the attendance of two-thirds or more of the directors and the consent of the majority of the directors present, to distribute all or part of the capital surplus or legal capital reserve in the form of cash, without the need for a resolution by the Shareholders' Meeting. This decision shall also be reported to the shareholders' meeting.

C. On March 10, 2026, the Board of Directors resolved to distribute a cash dividend of NT$0.3 per share and submitted a report on the 2026 Annual Shareholders’ Meeting of the Company.

(4) The proposed bonus issue at the shareholder’s meeting and its impact on the Company's operating performance and earnings per share: None.

(5) Employees' Compensation and Directors' Remuneration

① Percentage or range of compensation for employees; renumeration for directors, and supervisors as stated in the Company's Articles of Incorporation:

The Company shall distribute employee compensation based on 10% to 15% of the current year's profit status and shall distribute director's remuneration at no higher than 2% of the current year's profit status. However, when the company has accumulated losses, they shall be compensated. The profit situation referred to in the preceding paragraph refers to the profit before tax for the year, excluding the profit before distribution of employee's compensation and director's remuneration.

② The basis for estimating the amount of compensation for employees, renumeration for directors and supervisors in the current period, calculation based on the number of shares distributed to employees as remuneration, and accounting in case of difference between actual distribution amount and estimate:

A. The employee compensation amounted to NT$16,294,720 was distributed for the fiscal year 2025 with no difference between the accrued amount of the employee compensation in the fiscal year 2025 and the financial report.

B. The directors' remuneration to be distributed for the year 2025 is NT$2,063,998, which is with no difference between the accrued amount of the directors' remuneration in the fiscal year 2025 and the financial report.

③ Approval of Compensation and Remuneration Distribution by the Board of Directors:

A. The amount of compensation for employees and renumeration for directors distributed in cash or stock:

The proposed distribution of the Company's 2025 earnings was approved by the Board of Directors on March 10, 2026. For the proposed earnings distribution approved by the Board of Directors, compensation to directors of NT$2,063,998 and compensation to employees of NT$16,294,720 were all paid in cash.

B. The proportion of employee compensation distributed in the form of stock to the total net profit after tax and the total amount of employee compensation for the period: Not applicable.

④ Actual distribution of employees' and directors' compensation in the previous year (including the number of shares distributed, the amount and the price of the shares), and the difference between the actual distribution and the recognized employees' and directors' compensation, as well as the number of differences, the reasons for the differences, and the circumstances under which the differences were dealt with:

A. The actual amount of employees' compensation in 2024 was NT$16,771,000, all of which was paid in cash.

B. The actual amount of directors' remuneration in 2024 was NT$1,970,000, all of which was paid in cash.

C. The aforementioned employee remuneration and directors' remuneration were expensed in Fiscal Year 2024. The recorded amount of employee remuneration is consistent with the distribution amount resolved by the Board of Directors on March 11, 2025. However, directors' remuneration decreased by NT$1,211 compared with the amount recorded in Fiscal Year 2024, primarily due to changes in estimates. The difference has been adjusted and recognized in the profit or loss of Fiscal Year 2025.

(6) Repurchase of the Company's own shares: In progress.

December 31, 2025

Repurchase tranche	1st (Tranche)	2nd (Tranche)
Purpose of repurchase	Maintain the Company's credit and shareholders' equity	Maintain the Company's credit and shareholders' equity
Repurchase Period	114/04/11~114/06/10	114/08/22~114/10/21
Price Range of Repurchase	10.00~30.00	11.30~23.60
Types and Quantities of Repurchased Shares (shares)	Common Stock/1,000,000 shares	Common Stock/1,000,000 shares
Amount of Repurchased Shares (NT$)	17,676,106	15,632,711

Ratio of Repurchased Shares to Planned Repurchase Quantity (%)	100	100
Number of Shares Cancelled (Shares)	1,000,000	1,000,000
Accumulated Number of Shares Held by the Company(Shares)	1,000,000	1,000,000
Ratio of Accumulated Shares Held to Total Issued Shares (%)	0.68	0.68

2. Corporate Bond Transactions:

(1) Corporate Bond Transactions:

Types of Corporate bonds		Domestic 3rd Secured Convertible Bond
Issuance Date		September 28, 2022
Par Value		NT$100,000
Place of Issuance and Trading		Taipei Exchange
Issue Price		Par Value
Total Amount		NT$300,000,000
Interest Rate		Coupon rate: 0%
Term		3 years
Guarantor		E-sun Commercial Bank/Hsinchu Branch
Trustee		Chang Hwa Commercial Bank, Ltd
Underwriting Agency		President Securities Corporation
Signing Attorney		Attorney Chiu, Ya-Wen/ Handsome Attorneys-At-Law
Signing Accountant		Pwc Taiwan
Accountant Chiang Tsai-Yen and Accountant Lee Dian-Yi
Repayment Method		Except for holders of convertible bonds who convert into the Company's common stock pursuant to Article 10 of the Regulations, or exercise their put option pursuant to Article 18 of these Regulations, or are redeemed by the Company pursuant to Article 17 of the Regulations, or are repurchased and cancelled by brokerage firms' business premises, the bonds shall be repaid in cash at maturity in one lump sum based on the par value of the bonds.
Outstanding Principal Amount		NT$0
Redemption or Early Repayment Terms		Please refer to Article 17 and Article 18 of the Regulations Governing the Issuance of Convertible Corporate Bonds for details.
Restrictive Covenants		N/A
Name of Credit Rating Agency, Rating Date, and Result of Corporate Bond Rating		None.
Other Rights	None.
	Please refer to the Regulations Governing the Issuance of Convertible Corporate Bonds.
Possible Dilution of Equity and Its Impact on Existing Shareholder Rights		Convertible bonds do not have a dilutive effect on the Company's equity until bondholders choose to exercise their conversion rights. Bondholders have the option to convert at the most advantageous time during the convertible period, thus deferring the dilutive impact on equity.
As convertible bonds are converted into common share, they not only decrease liabilities but also increase shareholders' equity, thereby enhancing book value per share. Consequently, in the long run, existing shareholders' equity is better safeguarded.
Name of Entrusted Custody Institution for Exchange Subject		N/A

(2) Information on Convertible Bonds:

Types of Corporate Bonds		Domestic 3rd Secured Convertible Bond
Year		2024	As of September 28, 2025
Item
Market Price	Highest Market Price	120.00	No transaction details provided.
	Lowest Market Price	105.05	No transaction details provided.
	Average Market Price	107.51	No transaction details provided.
Conversion Price		23.21	22.92
Price at Date at Issuance		Conversion price at issuance on September 28, 2022: NT$27.04
Method of Fulfilling Conversion Obligation		Issuance of new shares

Preferred Shares: None.
Issuance of Oversea Depositary Shares: None.
Status of Employee Stock Option Plan: None.

6. The Following Items Should Be Recorded Regarding the Handling of Restricted Stock Awards

April 30, 2026

Type of Restricted Stock Awards	First Restricted Stock Awards	Second Restricted Stock Awards
Effective Registration Date and Total Number of Shares	November 9, 2023/5,000,000 shares
Issuance Date	November 15, 2023	August 11, 2025
Number of Restricted Stock Awards Issued	4,000,000 shares	175,000 shares
Number of Restricted Stock Awards Still Available for Issuance	0 shares (Expired)
Issue Price	Free distribution to employees without cash consideration, issued at a price of NT$0 per share.	Free distribution to employees without cash consideration, issued at a price of NT$0 per share.
Ratio of the Number of Restricted Employee Shares Issued to the Total Number of Issued Shares	2.76%	0.12%
Vesting Conditions of Restricted Stock Award (RSA)	Employees who are still employed and have achieved an average performance rating of 85 or above in the company's performance appraisal for the past five years upon the expiration of the restricted period for new shares granted to them (i.e., the benchmark date), and have not violated any labor contracts or work rules, are entitled to the following percentage of shares:Upon completion of 5 years of service from the distribution date: 100%	Employees who are still employed and have achieved an average performance rating of 85 or above in the company's performance appraisal for the past five years upon the expiration of the restricted period for new shares granted to them (i.e., the benchmark date), and have not violated any labor contracts or work rules, are entitled to the following percentage of shares:Upon completion of 5 years of service from the distribution date: 100%
Restriction on Rights in the RSAs	Rights restriction on shares granted before meeting conditions:1. During the vested period, employees are prohibited from selling, pledging, transferring, gifting, assigning, or disposing of the restricted employee rights shares granted to them in any other manner.2. Except for the aforementioned restrictions, other rights associated with the restricted employee rights shares granted to employees under these regulations, such as but not limited to dividend entitlements, bonus issues, and subscription rights for cash increases in capital, are identical to those of the Company's issued common shares.3. Stock dividends and bonus shares allocated from the RSAs are held in trust until the conditions are met, and they are delivered to the employees only upon meeting those conditions. However, if the conditions are not met, the Company shall reclaim and cancel the shares. Cash dividends and bonus shares distribution in cash are not subject to vested conditions and are transferred from the trust account to the employees' personal bank accounts within one month of the distribution date.4. Upon issuance of the RSAs, they shall be immediately placed in trust, and employees may not request the return of such shares from the trustee for any reason or in any manner until the conditions are met.5. During the vested period, in case of a reduction in capital due to cash reduction or capital replenishment to cover losses, which is not statutory reduction, the RSAs shall be cancelled in proportion to the reduction in capital. In the event of cash reduction, the refunded cash shall be held in trust and delivered to the	Rights restriction on shares granted before meeting conditions:1. During the vested period, employees are prohibited from selling, pledging, transferring, gifting, assigning, or disposing of the restricted employee rights shares granted to them in any other manner.2. Except for the aforementioned restrictions, other rights associated with the restricted employee rights shares granted to employees under these regulations, such as but not limited to dividend entitlements, bonus issues, and subscription rights for cash increases in capital, are identical to those of the Company's issued common shares.3. Stock dividends and bonus shares allocated from the RSAs are held in trust until the conditions are met, and they are delivered to the employees only upon meeting those conditions. However, if the conditions are not met, the Company shall reclaim and cancel the shares. Cash dividends and bonus shares distribution in cash are not subject to vested conditions and are transferred from the trust account to the employees' personal bank accounts within one month of the distribution date.4. Upon issuance of the RSAs, they shall be immediately placed in trust, and employees may not request the return of such shares from the trustee for any reason or in any manner until the conditions are met.5. During the vested period, in case of a reduction in capital due to cash reduction or capital replenishment to cover losses, which is not statutory reduction, the RSAs shall be cancelled in proportion to the reduction in capital. In the event of cash reduction, the refunded cash shall be held in trust and delivered to the

	employees only upon meeting the conditions. However, if the conditions are not met, the Company shall reclaim the cash.	employees only upon meeting the conditions. However, if the conditions are not met, the Company shall reclaim the cash.
	6. Until the conditions are met, employees shall delegate the exercise of their rights at Shareholders' Meetings, including attendance, proposal, speech, voting rights, and other matters related to shareholder interests, to the trustee.	6. Until the conditions are met, employees shall delegate the exercise of their rights at Shareholders' Meetings, including attendance, proposal, speech, voting rights, and other matters related to shareholder interests, to the trustee.
Custody Arrangement for RSAs	The custody is held at CTBC.	The custody is held at CTBC
Treatment of Shares Granted or Subscribed by Employees Before Meeting Conditions:	The Company reserves the right to reclaim their shares without compensation and proceed with their cancellation if the conditions are not met.	The Company reserves the right to reclaim their shares without compensation and proceed with their cancellation if the conditions are not met.
The Number of RSAs That Have Been Reclaimed or Repurchased.	586,000 shares	15,000 shares
Number of RSAs That Have Been Vested	4,000 shares	0 shares
Number of Unvested RSAs	3,410,000 shares	160,000 shares
The Ratio of Number of Unvested RSAs to the Total Number of Issued Shares (%)	2.35%	0.11%
The Effect on Shareholders' Equity	The Company aims to attract and retain professional talents, motivate employees, and enhance employee cohesion to collectively create higher company and shareholder benefits. This initiative, slated for full execution five years later, is not expected to have a significant impact on shareholder equity.	The Company aims to attract and retain professional talents, motivate employees, and enhance employee cohesion to collectively create higher company and shareholder benefits. This initiative, slated for full execution five years later, is not expected to have a significant impact on shareholder equity.

Note: Based on the total number of issued shares of 144,814,164 shares as of the record date of the shareholders' meeting on April 7, 2026.

Names of Managers and the Top Ten Employees Acquiring Restricted Stock Awards and their Acquisition Status

As of April 30, 2026; Unit: in Thousand of Shares

	Title	Name	Number of Restricted Stock Awards Acquired	Ratio of the Number of Restricted Stock Awards Acquired to the Total Number of Issued Shares (Note)	Vested RSAs				Unvested RSAs
					Number of Vested RSAs	Issue Price	Issue Amount	Ratio of the Number of Vested RSAs to the Total Number of Issued Shares (Note)	Number of Unvested RSAs	Issue Price	Issue Amount	Ratio of the Number of Unvested RSAs to the Total Number of Issued Shares (Note)
Managers	General Manager	Lai, Chia-De	730	0.50%	0	-	-	0	730	-	-	0.50%
	Special Assistant to General Manager	Liu, Yu-Tzu
	Assistant Manager	Li, An-Yuan
	Manager	Kei, I-Chen
	Manager	Sin, Wan-Bin
	Finance and Accounting Supervisor	Hou, Chi-Cheng
Employees	Manager	Fang, Yu-Hae	1,180	0.81%	0	-	-	0	1,180	-	-	0.81%
	Manager	Chen, Ching-Chang
	Manager	Wu, Shu-Man
	Manager	Chen, Pin-Chen
	Manager	Lu, Yen-Li
	Section Chief	Lin, Tzu-Cheng
	Audit Executive	Huang, Tzu-Yen
	Manager	Wu, Tsung-Ying
	Manager	He, Shao-Chi
Assistant Manager	Wu, Shu-Chen

Note: Based on the total number of issued shares of 144,814,164 shares as of the record date of the shareholders' meeting on April 7, 2026.

Status of New Share Issuance in Connection with Mergers and Acquisitions :None
Outstanding or recently completed securities issuances or private placements within the past three years for which the planned benefits have not yet materialized prior to the funding plans and implementation: None.

IV. Operations Overview

Main Business Activities

(1) Main Business Activities

The main business activities of the Company, as recorded in the registration data of the Ministry of Economic Affairs, are as follows:

CC01080 Electronic Component Manufacturing
F119010 Wholesale of Electronic Material
F219010 Retail of Electronic Materials
F401010 International Trade
I501010 Product Designing
CF01011 Medical Materials and Equipment Manufacturing
F108031 Wholesale of Medical Devices
F208031 Retail sale of Medical Equipments
F108011 Wholesale of Chinese Medicines
F401021 Restrained Telecom Radio Frequency Equipments and Materials Import
F208011 Retail Sale of Traditional Chinese Medicine
F108021 Wholesale of Chinese Medicines
F208021 Retail Sale of Traditional Chinese Medicine
CC01101 Restrained Telecom Radio Frequency Equipments and Materials Manufacturing
ZZ99999 All business activities that are not prohibited or restricted by law, except those that are subject to special approval

(2) Business Proportions

Unit: in Thousands of New Taiwan Dollars; %

Main Products	2025
	Sales Amount	Proportions
Blood glucose test strips	1,208,301	77.64%
Blood glucose meter	257,353	16.54%
Other	90,641	5.82%
Total	1,556,295	100.00%

(3) Current Product Offerings:

The Company's main products currently include home medical glucose meters and disposable blood glucose test strips, mainly catering to diabetes patients, as well as doctors or nurses in hospitals and clinics for monitoring blood glucose levels.

(4) Planned New Product Developments:

The Company plans to develop the following products in the future: ① Continuous Glucose Monitoring (CGM) System ② Hearing Aid ③ Non-invasive Blood Glucose Monitoring Device ④ Multi-functional Testing System ⑤ Wireless Hospital and Home Data Collection System ⑥ Home Care System ⑦ Integrated Device for Personal Portable Equipment ⑧ Glycated Hemoglobin Measurement System ⑨ Myocardial Infarction Detection System ⑩ Cholesterol Measurement System.

(5) Industry Overviews

① Current Status and Development of the Industry

A. Global Blood Glucose Monitoring Market

When we eat starch foods, our body converts them into glucose, which is then transported to different parts of the body through the bloodstream. The pancreas secretes insulin upon receiving the stimulation of glucose in the blood, and insulin helps glucose enter cells, converting it into energy needed for daily activities. However, when the pancreas fails to produce enough insulin or the body develops insulin resistance, which makes insulin ineffective, excess sugar remains in the bloodstream, leading to diabetes. Diabetes usually comes with dangerous complications, such as acute complications like diabetic ketoacidosis, hyperglycemic hyperosmolar syndrome, or hypoglycemia, which, if not treated promptly, can lead to death or long-term consequences. Chronic complications, such as eye, blood vessel, nerve, or kidney diseases, are often irreversible, gradually progressing, and eventually leading to complete organ failure and death.

In recent years, changes in lifestyle and dietary habits, coupled with population aging, have contributed to a steady increase in the prevalence of overweight, obesity, and diabetes. According to the International Diabetes Federation (IDF) Diabetes Atlas, 11th Edition (2025), approximately 590 million adults aged 20–79 worldwide are living with diabetes, representing a prevalence rate of 11.1%. By 2030, this number is projected to rise significantly to 643 million, and by 2050, it is expected to reach 853 million. During this period, the global population is estimated to grow by 20%, while the number of individuals with diabetes is projected to increase by 46%. The Federation has issued a warning that “diabetes is one of the fastest-growing global emergencies of the 21st century.”

According to the International Diabetes Federation (IDF), in 2025 the number of people living with diabetes worldwide reached 590 million, with a prevalence rate of 11.1%—meaning that nearly one in ten adults is affected. By 2050, the global number of diabetes patients is projected to rise to 853 million. Among countries, the top five in terms of adult diabetes cases are China 148 million, India 89.8 million, United States 38.5 million, Pakistan: 33 million, Brazil: 20 million, Following these are Bangladesh 15 million, Mexico 14 million, Indonesia 13 million, Russia 9 million. Together, the top ten countries account for 64.46% of the global diabetes population. It is further estimated that in 2025, approximately 3.5 million adults died from diabetes or its complications, representing 9% of global deaths. In the same year, global healthcare expenditure on diabetes was approximately USD 736.5 billion, accounting for 10% of total healthcare spending worldwide. The United States recorded the highest expenditure, at USD 294.6 billion, representing about 40% of global diabetes-related healthcare costs.

Due to the often-dangerous complications associated with diabetes, improper blood sugar control can trigger various complications. Therefore, it is essential to maintain blood sugar within the ideal range daily to prevent harm from high blood sugar levels. Diabetes patients must monitor their blood sugar levels daily to understand whether their blood sugar is effectively controlled within the normal range. This monitoring serves as a reference for adjusting insulin doses and dietary intake to avoid long-term instability in blood sugar levels, which increases the risk of complications. Thus, home-based self-monitoring of blood sugar is crucial for diabetes patients as a vital aspect of health management.

Since the introduction of the first blood glucose meter in the 1970s, various testing technologies have been developed. Currently, blood glucose testing still adopts an invasive measurement method, requiring the patient to prick their finger to collect blood from their fingertip. This blood is then transferred to the reaction layer of a blood glucose test strip, where glucose oxidase or glucose dehydrogenase enzymes catalyze the oxidation reaction of glucose, yielding the patient's blood sugar value. Each blood glucose test requires the use of disposable blood lancets and test strips. Test strips are costly consumables, priced at approximately $1 per strip. Different brands and models of blood glucose meters and test strips are not interchangeable. Users must continuously purchase test strips of the same brand as their blood glucose meter. Consequently, blood glucose meter manufacturers often offer consumers free or low-cost blood glucose meters to drive

subsequent sales of test strips, which are the primary source of profit for manufacturers.

B. Domestic Blood Glucose Testing Medical Device Manufacturers

Currently, the global blood glucose monitoring market is dominated by four major players from Europe and the United States. These include: Roche Diagnostics, with its Accu-Chek series products, Johnson & Johnson, through its subsidiary LifeScan, which produces the OneTouch series products, Bayer and Abbott. In the early stages, the global market share of the four major international manufacturers exceeded 95%, leaving limited room for development for other companies. Consequently, the domestic blood glucose monitoring industry in countries like China started relatively late compared to Europe and the United States. It wasn't until the late 1990s that domestic companies began entering the market. Some well-known companies in this space include Apex Biotechnology and TaiDoc Technology. Leveraging the advantages of domestic IC design and electronics manufacturing, these companies initially employed OEM strategies to penetrate major competitive markets. Subsequently, they introduced their own brands, targeting emerging markets outside of Europe and the United States.

As aging populations lead to a continuous increase in diabetes patients globally, governments face mounting pressure on healthcare expenditure. Advanced countries are seeking more cost-effective solutions to control the rising government spending on healthcare, often by reducing annual medical subsidy expenditures. Consequently, healthcare providers are turning to pharmaceuticals or equipment with higher cost-effectiveness. International giants, facing significantly compressed profits, are gradually outsourcing manufacturing orders and even showing trends of withdrawing from the market. For example, Bayer sold its diabetes care business to Panasonic Healthcare for 1.022 billion euros in 2015, while Johnson & Johnson sold its diabetes business LifeScan to the private equity firm Platinum Equity for USD 2.1 billion in June 2018. Additionally, with the economic growth of emerging market countries and changes in lifestyle and dietary habits, obesity and diabetes populations are rapidly increasing. In 2021, China, India, Pakistan, the United States, and Indonesia ranked among the top five countries globally in terms of diabetes population, with a total of 284.4 million people, accounting for approximately 53% of the global diabetes population. Emerging market countries are more sensitive to healthcare expenditure, and second-tier manufacturers, with their competitive advantage of price flexibility, have a better chance to compete with international giants and win government medical tenders. Consequently, as the global trend towards affordable blood glucose monitoring equipment continues, and with the significant increase in the diabetes population in emerging market countries, the market share of the top four international manufacturers has declined from over 90% in the early days to less than 80%. Domestic players may have the opportunity to secure large orders

from major manufacturers or collaborate with regional brands or pharmaceutical companies in the regional market to chip away at the market share of the giants.

The development of the blood glucose monitoring industry in Taiwan has spanned over 20 years, with currently more than twenty relevant manufacturing companies involved. These include companies such as TaiDoc, ApexBio, BIONIME, OK BIOTECH, Bioptik, GlBiotech, and HMDBIO. Starting from OEM (Original Equipment Manufacturing), these companies have progressed to establish their own brands and have accumulated significant export achievements in overseas markets. Consequently, blood glucose-related medical devices have become one of Taiwan's major export advantage products. According to the "2025 Biotechnology Industry in Taiwan" published by the Industrial Development Bureau, Ministry of Economic Affairs in August 2025, in 2023 and 2024, the export values of blood glucose test strips and glucose meters were NT$5.735 billion, NT$2.655 billion, NT$5.926 billion, and NT$2.820 billion, respectively, totaling NT$8.390 billion and NT$8.746 billion. The combined export value of blood glucose test strips and meters of NT$8.746 billion in 2024 accounted for 10.23% of the total medical device exports of NT$85.5 billion, indicating that domestic blood glucose testing products, leveraging their high cost-effectiveness, have gradually shown results in expanding into new markets. Therefore, with the aging population and increasing healthcare expenditure worldwide, there is considerable growth potential and development opportunities for these products in the future.

② Current Situation of the Medical Device Industry in Taiwan

The global prevalence of diabetes remains persistently high. According to the International Diabetes Federation (IDF) Diabetes Atlas, 2025, more than 590 million people worldwide are living with the disease. By the end of 2025, as many as 3.5 million individuals are expected to die from diabetes and its complications. Looking ahead, the global diabetes population is projected to increase to 853 million by 2050.

Given the cost-effectiveness and ease of use, Self-Monitoring Blood Glucose (SMBG) devices have become the primary testing method adopted by diabetic patients. The blood glucose testing market is experiencing stable growth, with an annual growth rate of approximately 5.5%. With the advent of affordable blood glucose testing products, there is a reshuffling of brand market shares, intensifying competition in the blood glucose testing market. The exit of international giants presents a significant opportunity for Taiwanese manufacturers to grow.

Furthermore, with the formal implementation of the EN ISO15197:2015 blood glucose meter standard, regulatory authorities worldwide have raised requirements for the accuracy of blood glucose test strips. This trend favors high-precision blood glucose testing strips, which will become a basic threshold for seizing the blood glucose monitoring product market in the future. It will accelerate the elimination of small and medium-sized companies lacking technological capabilities, allowing firms with relevant technical strengths to seize greater business opportunities and growth momentum in this landscape.

Currently, Taiwanese manufacturers of blood glucose monitoring products have achieved vertical integration from upstream manufacturing to downstream marketing. These manufacturers possess mature production technologies, and coupled with the global trend of affordable medical devices, their excellent production capabilities have led to European and American giants outsourcing manufacturing orders. This trend has also contributed to the increasing number of Taiwanese manufacturers involved in related product development. In the future development of blood glucose monitoring products, with the advent of affordable blood glucose monitoring products and the promotion of new regulatory standards, the high cost-effectiveness and high precision characteristics of products will become even more significant. (See Figure 10 below)

Figure 10. Map of Taiwan's Blood Glucose Monitoring Product Industry

資料來源：工研院 IEK(2016/05)

中文	英文
上游試劑與設備製造	Upstream - Reagent and Equipment Manufacturing
石墨電極	Graphite Electrode
台欣、泰博、訊映、五鼎、連爾、福永、金聿新、暐世、合世、厚美德	Tyson Bio, TaiDoc, OK Biotech, ApexBio, Diodes, GlBiotech, Bioptik, Visgeneer, H&L, HMDBIO
酵素	Enzymes
血糖試片	Blood Glucose Test Strips
金屬電極	Metal Electrodes
華廣、光寶、泰博	Bionime, Lite-On, TaiDoc
IC 晶片	IC Chips
台積電、聯電、德州儀器、東芝	TSMC, UMC, TI, Toshiba
記憶體	Memory Components
力晶、華邦電、茂德、華亞科	Powerchip, Winbond, ProMOS, Inotera
電化學式血糖計	Electrochemical Blood Glucose Meter
台欣、泰博、五鼎、華廣、惠基、訊映、聿新、厚美德、福永、達爾、勤立、暐世、翔園、喬聯、衡欣、合世、沙地郡、茂晶、光寶、長庚醫學	Tyson Bio, TaiDoc, ApexBio, BIONIME, EUMED, OK Biotech Bioptik, HMDBIO, GlBiotech, Diodes, General Life, Visgeneer, Scienco, BioCare, AZ Instrument, H&L, Sand County, Macnica, Lite-On, CGM,
中游組合包裝	Midstream - Assembly Packaging
電化學式血糖監測產品組合	Electrochemical Blood Glucose Monitoring Product Assembly
下游品牌	Downstream - Branding
電化學式血糖監測產品品牌廠商	Manufacturer of Electrochemical Blood Glucose Monitoring Products
百略、台欣、華廣、五鼎、訊映、聿新、厚美德、福永、勤立、暐世、沙地郡、茂晶、翔國、喬聯、衡欣、光寶	Microlife, Tyson Bio,TaiDoc, ApexBio, OK Biotech, Bioptik, HMDBIO, GlBiotech, General Life, Visgeneer, Sand County, Macnica, Lite-On
資料來源:工研院	Data Source: Industrial Technology Research Institute (ITRI)

3 Various Development Trends of Products

A. The Development of Wearable Devices and the Internet of Things (IoT) Continues to Drive the Growth of Healthcare Products. With the development of various wearable devices and connected devices, smartphones are gradually becoming a control center. Due to their portability, sufficient computing power, and the mature development environment for developers, smartphones can serve as a platform for integrating data from medical-grade hardware terminals via sensors, mobile devices, and app applications. For example, smartphone blood glucose meters fall into this category. It is estimated that in the future, mobile medical apps used for diagnosis and assistance will emerge rapidly.

According to the International Diabetes Federation (IDF) statistics, there are approximately 537 million adults worldwide with diabetes (90% of whom have Type 2 diabetes, and 10% have Type 1). Manufacturers will continue to develop mobile medical apps to improve the management of diabetes patients. They will also supply diabetes monitoring devices (such as blood glucose monitors and insulin pumps) to collect data, identify the causes of hypoglycemia, and develop systems for big data analysis. Ultimately, this could enable predictions of hypoglycemia occurrence up to 3 hours in advance, accelerating preventive measures.

Furthermore, the IoT has become an important infrastructure across all industries. With factors such as aging populations, unequal distribution and wastage of medical resources, and the rise of personal health management, the healthcare industry is taking the first step towards IoT intelligence using mobile and wearable devices. The interoperability of information systems has also become a key goal for medical institutions, aiming to establish a medical ecosystem. This not only enhances hospital efficiency but also improves doctor-patient relationships and increases medical quality. Therefore, leveraging IoT as the first step towards intelligence, continuously collecting, interoperating, and analyzing information, will be the core axis for realizing smart healthcare in the future.

B. Development of Non-Invasive Blood Glucose Monitoring Technology

Currently, blood glucose testing devices rely on invasive methods to measure blood glucose levels, requiring the collection of blood samples from the subject. This approach can sometimes lead to complications such as bleeding, blood loss, and allergic reactions. Additionally, the need for new testing strips for each use increases testing costs. Therefore, in recent years, international medical equipment manufacturers and research institutions have been continuously investing in non-invasive blood glucose testing technology. Non-invasive blood glucose monitoring devices primarily utilize various non-invasive techniques such as optical or electrochemical methods to monitor blood glucose levels outside the body. Among various development approaches, optical detection is the mainstay in the production of non-invasive blood glucose monitoring devices. However, non-invasive blood glucose meters face challenges such as lengthy detection times and issues related to high instrument prices and insufficient accuracy. Consequently, they have not yet been able to replace existing blood glucose meters that rely on blood sampling. Nevertheless, some manufacturers continue to invest in development with the aim of capturing market opportunities through innovative detection technologies.

C. The Development of Home Terminal Products in Telecare Applications

The service content of telecare includes three main parts: physiological information sensing, care service integration, and medical interface and health management. With the rapid growth in demand for telecare and changes in service domains, there is corresponding innovation and smart development of home terminal devices. The aging population issue and the prevalence of chronic diseases are driving the demand for home medical devices. High-penetration home medical equipment includes blood pressure measurement systems, blood glucose meters, temperature measurement systems, pregnancy and ovulation tests, and cholesterol measurement products. Among these, diseases prevalent among the elderly, such as hypertension and diabetes, lead to higher prevalence rates of blood glucose meters and blood pressure monitors compared to other home medical devices. Blood glucose measurement methods can be divided into self-monitoring of blood glucose (SMBG) and continuous glucose monitoring (CGM). The market size of CGM devices is currently smaller, and the technological threshold is higher. However, in recent years, extracorporeal detection has shifted towards wearable and implantable development, making continuous glucose monitoring a trend and driving the development of various new types of blood glucose monitoring devices.

$\odot$ Competition Situation

The Company has been engaged in the development of blood glucose monitoring products since 2006, with over a decade of experience in this field. Our first blood glucose monitoring product received FDA and CE certification in 2007, and in July 2008, we began collaborating with the US medical device manufacturer Prodigy, securing ODM orders for their brand. This successful partnership allowed us to penetrate the US market effectively. In recent years, we have also developed our own brand, OKmeter, to expand into markets outside the United States. Our products are now successfully marketed in more than 60 countries worldwide, serving over 100 customers.

The Company ranks as the fourth largest blood glucose monitoring manufacturer in Taiwan in terms of revenue, following TaiDoc, ApexBio, and BIONIME. Importantly, both the Company and our competitors primarily focus on exporting our products. According to the "2025 Biotechnology Industry in Taiwan" published by the Industrial Development Bureau, Ministry of Economic Affairs, the total export value of blood glucose monitoring products from Taiwan in 2024 was NT$8.746 billion. In the same year, the Company's export value for blood glucose monitoring products in 2023 was NT$1.670 billion, accounting for $19.09\%$ of the total.

The Top Four Manufacturers of Blood Glucose Testing Products in Taiwan
Unit: in Thousands of New Taiwan Dollars

Item	ApexBio	TaiDoc	Bionime	OK Biotech
Establishment Date	December 2, 1997	May 11, 1998	April 14, 2003	September 27, 2004
Capital	999,502	953,745	610,388	1,470,592
Revenue in year 2025	1,944,907	4,204,133	1,838,588	1,556,295
Instrument Category	Electrochemical formula	Electrochemical formula	Electrochemical formula	Electrochemical formula
Electrode Structure	Screen-printed electrode	Screen-printed electrode	Patented precious metal electrode	Screen-printed electrode
Brand Name	Glucosure	FORAcare	Bionime	OKmeter
Other	OEM/ODM ratio and own-brand ratio is approximately 8:2	OEM/ODM ratio and own-brand ratio is approximately 6:4	Mainly promotes own-brand products	OEM/ODM ratio and own-brand ratio is approximately 8:2

Data Source: Taiwan Stock Exchange Market Observation Post; Compiled by the Company.

(6) Technology and R&D Overview

① Research and Development Personnel and Their Education and Experience

Unit: in Person; % As of April 25, 2025

Distribution of Educational Background	PhD	Master	University/ College	High School/Vocational High School	Below High School	Total
Individuals	1	3	6	0	0	10
Proportion	10%	30%	60%	0	0	100.00%

② Research and development expenses incurred in the current year and up to the date of printing of the annual report

Unit: in Thousands of New Taiwan Dollars; %

Year	2025	2024
Item
R&D expenses	$ 59,042	$ 57,927
Net Operating Revenue	1,556,295	1,670,033
Proportion of Net Revenue from Operating Activities	3.79	3.47

③ Technologies or Products for 2024 and Up to the Date of Annual Report Printing

Year	R&D Achievement	R&D Content
2024	Ok Pro Blood Glucose Monitoring System
OKmeter Match II Blood Glucose Monitoring System
OKmeter Direct Blood Glucose Monitoring System
OKmeter Concept Blood Glucose Monitoring System
OKmeter OPTIMA Blood Glucose Monitoring System	Increasing IVDR technical documentation preparation.	IVDR certification
	Mobile wireless Hearing Aid	Increase hearing aid product market
	Watch-style Wireless Hearing Aid	Increase hearing aid product market
2025	Non-Invasive Blood Glucose Monitoring System	Increase blood glucose monitoring system market
2026	Non-invasive Blood Glucose Monitoring System	Increase blood glucose monitoring system market

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

① Short-term Business Development Plan

A. Marketing Strategy

a. Expand market share by introducing competitive blood glucose meters.
b. Seek OEM/ODM opportunities by attracting orders from international manufacturers.
c. Introduce proprietary brand in appropriate regions to maintain long-term control over distribution channels and ensure stable profitability.
d. Actively cultivating the markets of the United States and Canada.

B. Product Strategy

a. Continuously increase the added features of existing products.
b. Increase product depth, develop new models, and extend product lines to include high-end products such as non-invasive and wireless blood glucose management systems.

C. Production Strategy

a. Adjust and expand production capacity as needed to ensure timely delivery to customers in response to business development.
b. Implement lean management comprehensively to meet customer quality and service requirements.
c. Provide flexible, rapid, high-quality, cost-effective, service-oriented, and innovative production services.
d. Expand local production customers to deepen cooperation with our company and increase market share of our products.

D. Management Strategy

a. Strengthen the computerization of processes, integrating order receipt, production, shipping, accounting, and finance to enhance operational efficiency and strengthen analytical management reporting capabilities.
b. Operate with integrity and reciprocity to create maximum satisfaction among customers, suppliers, shareholders, and employees.
c. Enhance the Company's strength and cultivate an international image.

② Long-term Business Development Plan

A. Marketing Strategy

a. Participate in international medical exhibitions to enhance company image and product visibility.
b. Focus on blood glucose monitoring products as the foundation, while continuously investing in the development of new products for home testing and care. This strategy aims to leverage the existing customer base built over many years, providing a diverse range of product choices and added value to capture opportunities in the home healthcare product market.

c. Establish strategic alliances with international major firms to expand market share.

B. Production Strategy

Establish production lines in key development markets to meet the demand for regional business expansion through local manufacturing.

C. Management Strategy

a. Forge close ties with key suppliers of raw materials and important customers to maintain a stable supply relationship.
b. Utilize the capital market fully to access more channels for raising long-term funds to meet the needs of corporate expansion and development, aligning with future plans accordingly.

2. Market and Sales Overview

(1) Market Analysis

① Sales Area of Main Products

Unit: in Thousands of New Taiwan Dollars; %

YearItem	2024		2025
		Sales Amount	Ratio(%)	Sales Amount	Ratio(%)
Export	America	595,823	35.68%	626,074	40.23%
	Asia(exclude Taiwan)	505,434	30.26%	534,675	34.36%
	Other	516,965	30.96%	320,418	20.59%
	Total	1,618,222	96.90%	1,481,167	95.17%
Domestic Sales		51,811	3.10%	75,128	4.83%
Net Operating Revenue		1,670,033	100.00%	1,556,295	100.00%

③ Market Share

Due to the highly complex and interdisciplinary nature of medical devices, which integrate various industries and technologies, including biochemistry, pharmaceuticals, medical engineering, chemical engineering, plastics, textiles, optoelectronics, electronics, communications, machinery, materials, and more, the capital required for development is substantial, and the integration difficulty is high. As a result, the global medical device industry is dominated by a few international giants, such as Johnson & Johnson, GE Healthcare, and Siemens. In the global blood glucose meter market, major suppliers include Roche, Johnson & Johnson, Bayer, and Abbott.

NT$8.746 billion. In the same year, the Company's export value for blood glucose monitoring products was NT$1.670 billion, accounting for 13.13% of the total.

③ Future Supply and Demand and Growth Potential in the Market

A. Supply Side

The global blood glucose monitoring market is currently dominated by the four major players in Europe and America. However, governments worldwide are facing significant pressures on healthcare expenditures, leading to annual reductions in health insurance subsidies for blood glucose monitoring products. This trend is unfavorable for the sales of high-priced branded monitoring products and has resulted in a downward trend in the prices of related blood glucose monitoring products. International giants in the industry are contemplating withdrawal as profits shrink or become non-existent. Following the exits of major players like Bayer and Johnson & Johnson from the market in 2015 and 2018 respectively, the global blood glucose monitoring market has started undergoing significant changes. International giants, due to declining profits, are releasing more contract manufacturing orders. Domestic manufacturers with mature technology and competitive production costs are well-positioned to seize the trend of product price reduction. They have the opportunity to obtain large orders released by major players and, due to their competitive pricing advantage, can compete directly with international giants. This presents an opportunity to capitalize on market gaps and gradually erode the market share of major players.

B. Demand Side

The global diabetes population is rising rapidly. According to the International Diabetes Federation (IDF) Diabetes Atlas, 10th Edition, approximately 590 million adults worldwide were living with diabetes in 2025. By 2050, the number of patients is projected to increase by an additional 262 million, reaching 853 million. At that time, the global prevalence rate is expected to reach 12%, meaning that roughly one in every eight adults will be affected.

In 2025, the countries with the largest adult diabetes populations were China 148 million, India 89.8 million, United States 38.5 million, Pakistan 33 million, Brazil 20 million, Following these were Bangladesh 15 million, Mexico 14 million, Indonesia 13 million, Russia: 9 million.

Together, the top ten countries accounted for 64.46% of the global diabetes population, underscoring the significant growth potential for diabetes-related healthcare demand in emerging markets.

Diabetes has already become one of the top ten causes of death globally, with more than 4 million deaths annually directly or indirectly attributable to the disease. As a result, governments worldwide are actively promoting public health education to improve patient self-management of blood glucose. The demand for blood glucose monitoring devices continues to rise.

In developing countries, where the diabetes population is substantial but product penetration remains relatively low, economic improvements and increased government investment in healthcare infrastructure are driving rapid market expansion. Consequently, the annual growth rate of the blood glucose monitoring market in these regions is expected to outpace that of advanced economies, becoming a key driver of global market growth.

The Top 10 Countries in the World for Adult Diabetes Patients from 2019 to 2045

2019			2030			2045
Rank	Country or territory	Number of people with diabetes (millions)	Rank	Country or territory	Number of people with diabetes (millions)	Rank	Country or territory	Number of people with diabetes (millions)
1	China	116.4(108.6–145.7)	1	China	140.5(130.3–172.3)	1	China	147.2(134.7–176.2)
2	India	77.0(62.4–96.4)	2	India	101.0(81.6–125.6)	2	India	134.2(108.5–165.7)
3	United States of America	31.0(26.7–35.8)	3	United States of America	34.4(29.7–39.8)	3	Pakistan	37.1(15.8–58.5)
4	Pakistan	19.4(7.9–30.4)	4	Pakistan	26.2(10.9–41.4)	4	United States of America	36.0(31.0–41.6)
5	Brazil	16.8(15.0–18.7)	5	Brazil	21.5(19.3–24.0)	5	Brazil	26.0(23.2–28.7)
6	Mexico	12.8(7.2–15.4)	6	Mexico	17.2(9.7–20.6)	6	Mexico	22.3(12.7–26.8)
7	Indonesia	10.7(9.2–11.5)	7	Indonesia	13.7(11.9–14.9)	7	Egypt	16.9(9.0–19.4)
8	Germany	9.5(7.8–10.6)	8	Egypt	11.9(6.4–13.5)	8	Indonesia	16.6(14.6–18.2)
9	Egypt	8.9(4.8–10.1)	9	Bangladesh	11.4(9.4–14.4)	9	Bangladesh	15.0(12.4–18.9)
10	Bangladesh	8.4(7.0–10.7)	10	Germany	10.1(8.4–11.3)	10	Turkey	10.4(7.4–13.3)

Data Resource: IDF Diabetes Atlas, 2019.

④ Competitive Niche

A. Accurate and stable product recognition:

The Company's main products are blood glucose meters and blood glucose test strips. The test results of these products comply with the ISO 15197 standard. They have obtained certifications from regulatory authorities such as the U.S. FDA, EU CE, and China CFDA. In April 2011, Sinoprobe's test strips received favorable ratings for accuracy from the German third-party certification body IDT. Additionally, in March 2016, the Company was commissioned by TÜV Rheinland to conduct clinical tests at the Isala Hospital Laboratory in the Netherlands. The results showed an accuracy rate of over 96%, demonstrating that the Company's products have precise and stable quality standards at an international level.

B. Vertical integration from suppliers to distributors:

Since the establishment of the Company's medical equipment business, we have maintained excellent cooperation with both upstream and downstream suppliers. This has endowed us with outstanding and flexible production scheduling capabilities, complemented by superior quality and precise delivery schedules. As a result, we have fostered long-term collaborative relationships with our customers. The Company prioritizes maintaining the stability of its supply sources and channels. It ensures the stability of raw materials and component supplies, adjusting flexibly according to market conditions of the supply targets. This approach enhances efficiency and reduces costs, making products more competitive and ensuring smooth sales by guaranteeing a stable supply and demand relationship. Through vertical integration, the Company ensures product quality and service standards, thereby enhancing the brand image of "OKmeter" and continuously expanding its visibility in the market.

C. Marketing channel optimization

Due to the high requirements for product stability and supplier cooperation in the medical equipment industry, our business team segments the sales market according to geographical regions. The Company signs distribution contracts with customers in each area and conduct sales through local distributors using indirect sales methods. Additionally, the Company has established subsidiaries in Guangzhou, China, Japan, and Taiwan to expand into the Mainland China, Japan, and Taiwan markets. Apart from maintaining good interaction and communication with customers, this approach allows the Company to be closer to the market and understand customer needs better, thereby enhancing the competitiveness of the Company's products. The Company employs various channels for sales, including collaborations with distributors and direct market expansion initiatives. Through these efforts, the Company has established a presence in over 60 countries and have a customer base exceeding 100. This gradual process has enabled us to build a comprehensive global marketing system.

D. Effective use of production factors

The Company outsources the production of the mainboard module of the blood glucose meter and the front-end process of the blood glucose test strips. Production resources are allocated for enzyme formulation control, test strip circuit design, and the application of glucose-sensitive chemicals in the latter stages of the process. Consequently, part of the assembly line's manpower in the later stages is provided by outsourced personnel to maintain operational flexibility. Additionally, the Company effectively utilizes machinery and implements equipment improvement methods. For instance, the blood glucose test strip's original single-nozzle application machine has been modified into a multi-nozzle production machine, effectively increasing output to meet growing order demands.

⑤ Favorable and unfavorable factors and response strategies for development vision.

A. Favorable factors

a. Population aging and the increase in obese populations are driving continuous growth in the global blood glucose monitoring market.

The rising elderly population and obesity rates globally have led to a significant increase in diabetes cases, thereby increasing the demand for home blood glucose monitoring devices due to heightened personal preventive healthcare awareness. The increasing global elderly population and prevalence of obesity have led to a significant rise in diabetes cases. Moreover, the growing awareness of personal preventive healthcare has resulted in a noticeable increase in demand for home blood glucose monitoring devices. The aging population contributes to insufficient insulin secretion in the body, while obesity reduces insulin function, leading to a continuous growth in the global diabetic population. According to the International Diabetes Federation, an estimated 5.37 billion adults worldwide had diabetes in 2021, with projections suggesting that the number of adult diabetes patients could reach 7.84 billion by 2045, representing an increase of nearly 50%. This significant growth underscores the alarming rate of diabetes worldwide. Currently, diagnostic and treatment rates remain disproportionately low, indicating a rising demand for blood glucose monitoring products in the coming years.

b. Technical patents, grasping product trends

The Company's current technology has achieved minimal blood sampling and rapid measurement (blood sample volume of 0.3 µl, response time of 5 seconds), with product technology synchronized with international major manufacturers. In April 2011, the test results from the German third-party certification body, Institute of Diabetes-Technology GmbH (IDT), showed that the Company achieved a high level of accuracy in the challenging aspect of low blood glucose measurement, which is generally considered the most difficult in the industry. According to the current standards, clinical test results must have over 95% of measurements falling within the specified range. By 2011, the Company's products already met the stringent accuracy standards set by the ISO for 2013. Additionally, in March 2016, clinical testing conducted by the laboratory of Isala Hospital in the Netherlands, commissioned by TÜV Rheinland Nederland B.V., showed an accuracy rate of over 96% according to TRN Guidelines. These results demonstrate the Company's product quality and technological advantage.

c. Establishment of marketing channel

The Company boasts a robust international marketing team, actively participating in international medical exhibitions to strengthen the company's image and product recognition. With product sales spanning across countries in the Americas, Europe, Asia, and Africa, the Company adopts a dual-brand strategy featuring its proprietary brand "OKmeter" under the self-branding, as well as the brand "Prodigy" as an OEM manufacturer for its investment company. Additionally, SinnoVision engages in ODM/OEM manufacturing for other brands, leveraging a comprehensive marketing channel network to successfully market its products to over 60 countries and more than 100 customers worldwide.

d. The US healthcare reform program.

Since 2014, with the implementation of the Affordable Care Act initiated by President Obama in the United States, the expansion of insurance coverage and reduction of medical costs have been driving the continuous growth of the healthcare market. On the other hand, the aging population in the United States has been steadily increasing, making Medicare (medical insurance) the fastest-growing component of healthcare expenditures. By 2023, its share is expected to reach 22%, with a compound annual growth rate (CAGR) of 7.3% from 2021 to 2028. This poses a significant fiscal challenge for the government, as expenditures on aging-related diseases such as cardiovascular diseases, hypertension, diabetes, osteoarthritis, among others, are major cost drivers. This trend is expected to drive the vibrant development of related medical device markets in the future, presenting a great opportunity for Taiwanese manufacturers known for producing high-quality, affordable medical devices. Similar to other high-tech product development trends, once a certain technological threshold is reached, the Company, with its high-quality and low-cost blood glucose meters and test strips, can gradually replace international giants in the market, thereby potentially driving the Company's future growth.

B. Unfavorable factors and response strategies.

a. Competitors primarily comprise foreign industry giants, making brand expansion challenging.

The global market for blood glucose monitoring products is primarily dominated by international top players such as Roche, Johnson & Johnson, Bayer, and Abbott, among others, collectively holding approximately 80% of the market share. These industry leaders boast ample financial resources and enjoy higher brand recognition, significantly influencing our company's marketing strategies and market positioning.

[Response Strategy]

Since the year 2006, the Company has been involved in the development of blood glucose monitoring products. In addition to actively seeking and closely collaborating with upstream and downstream suppliers to produce high-quality products with better cost-effectiveness than those of international giants, we have employed professional marketing strategies to build brand awareness and enhance product credibility. The primary focus has been on expanding into the largest market, accounting for approximately 40% of the global blood glucose monitoring market, which is the United States. The Company aims to break through the barriers set by major players by entering niche regions, markets, or countries, thereby diversifying the Company's customer base. Furthermore, the Company provides high-quality products to regional distributors and establish a comprehensive distribution network. By fostering closer strategic partnerships with distributors, we aim to expand our market presence and ensure the steady growth of our products in the market. Leveraging our accumulated market reputation, the Company strives to increase the market share of our proprietary brands in the future.

b. Intense Price Competition Among Competitors

The industry is directly impacted by the insurance reimbursement conditions in overseas markets. For instance, the reduction in reimbursement for blood glucose monitoring products in the United States in 2014 severely affected the operational performance of domestic operators. With the anticipated adjustment of reimbursement conditions in major countries expected to deteriorate in the future, there is a concern that it may impact the average selling prices (ASPs) of exports by domestic operators, thereby affecting the profit performance of the Company.

[Response Strategy]

In a market gradually becoming akin to a 'Red Ocean', maintaining profit margins poses a certain level of difficulty. Following the basic principles of economics, equivalent to increasing the total gross profit, the Company continually expands its operations to create new customer sources in pursuit of maximizing overall benefits. Consequently, it progressively extends its sales to other regions and countries such as Turkey, India, Germany, Russia, the UK, the Middle East, China, Africa, among others. The proportion of customers beyond the top one has increased from less than 25% in 2011 to nearly eighty percent by the end of 2023. This demonstrates the competitiveness of its products in terms of quality and price, enabling the Company to continuously receive customer orders. Moreover, its flexible marketing capabilities enable it to successfully expand its customer base in the fiercely competitive blood glucose monitoring market.

c. High Dependence on Exports Exposes the Company to Fluctuations in Profitability due to Currency Exchange Rate Changes

The Company's primary products are blood glucose meters and test strips. Due to the limited scale of the domestic market, exports constitute the majority of its sales, accounting for over 95% of its total revenue. However, the main raw materials and components are sourced from domestic suppliers. As the primary currency for export transactions is the US dollar, fluctuations in exchange rates will have a certain impact on the Company's profitability.

[Response Strategy]

The Company actively monitors the international financial market conditions and exchange rate fluctuations, staying updated on the latest exchange rate movements and maintaining close communication with the foreign exchange departments of banks to fully grasp exchange rate trends. It endeavors to match sales income and procurement expenses in the same currency to achieve natural hedging effects. Additionally, it continuously strengthens the financial team's understanding of exchange rate hedging concepts, regularly reviews the Company's financial status, and conducts foreign exchange conversions in a timely manner. Furthermore, when encountering significant exchange rate fluctuations, the Company appropriately renegotiates transaction terms with customers and suppliers to mitigate any adverse impacts of exchange rate volatility on its operations.

d. The Era of Product Commoditization and Price Competition Is Arriving

With the continuous increase in the global diabetic population, there is a certain market potential for related monitoring products. After years of development by manufacturers, medical equipment has become a mature industry. However, the market competition for home monitoring medical devices is intense. Many governments, due to fiscal constraints, have implemented policies to reduce reimbursement for home blood glucose monitoring and emphasize products with better cost-effectiveness. This could affect the profitability and strategic planning of related manufacturers. Additionally, new entrants in the medical device industry may compete by lowering prices to expand their market share. Furthermore, in response to this trend, the top four global international manufacturers have also introduced lower-priced blood glucose meters to maintain their market share. Therefore, in the era of product commoditization and price competition, it may impact the profit performance of the Company.

[Response Strategy]

The Company has been deeply involved in the blood glucose monitoring product market for over a decade. With high precision, quality, and stability, its products have gained trust and recognition from customers. In addition to enhancing product convenience, adding additional features, and improving product differentiation, the Company also vertically integrates upstream and downstream processes, controlling important raw materials and distribution channels. Through periodic negotiations with suppliers and continuous process optimization by introducing automation equipment, production efficiency is increased to reduce unit production costs. Therefore, the Company still maintains a certain advantage in this trend. Furthermore, holding the manufacturing technology of blood glucose testing products, the Company aims to deepen cooperation with key customers through strategic alliances in order to capture a larger market share from the top four global manufacturers, thereby mitigating the potential erosion of profit margins due to price competition.

(2) The Significant Applications and Manufacturing Processes of the Main Products

① The Significant Applications of the Main Products

The main products of the Company, blood glucose meters and blood glucose test strips, are intended for use by diabetes patients, doctors, or nurses in hospitals and clinics to monitor changes in blood sugar levels. They serve as a reference for adjusting insulin dosage or controlling diet and exercise.

The significant applications and manufacturing processes of the main products

(3) Supply of Main Raw Materials

The Company specializes in the manufacturing of diabetes test strips and electronic blood glucose meters. The main raw materials include blood glucose test strips, integrated circuits (IC), mechanical parts, and printed circuit boards (PCB). The company maintains excellent relationships with its primary suppliers, ensuring a stable source of supply.

(4) List of Main Customers for Sales and Purchases

Top Suppliers Accounting for Over $10\%$ of Total Purchases in 2024 and 2023: Purchasing Amounts, Percentages, and Reasons for Changes

Unit: in Thousands of New Taiwan Dollars

No.	2024				2023
	Item	Amount	As % of Total Net Procurement	Relationships to the Company	Item	Amount	As % of Total Net Procurement	Relationships to the Company
1	Company L	248,392	20.85	—	Company L	168,565	21.21	—
2	Ubdevice Corp.	162,238	13.62	Note 1	Ubdevice Corp.	149,764	18.85	Note 1
3	Chiao In Technology	132,654	11.13	Note 1	Chiao In Technology	116,140	14.62	Note 1
4	Company Y	124,661	10.46	—	Company Y	87,623	11.03	—
	Other	523,631	43.94	—	Other	272,530	34.30	—
	Net Purchases	1,191,576	100.00	—	Net Purchases	794,622	100.00	—

Note 1: Related party to the Company.

Due to the Company's revenue in fiscal year 2025 being lower than that of fiscal year 2024, the Company's purchases from L Company, Ubdevice Corp., Chiao In Technology, and Y Company in fiscal year 2025 were correspondingly reduced compared with fiscal year 2024.

② Customers Accounting for Over 10% of Total Sales in 2025 and 2024: Customer Names, Sales Amounts, and Percentages

Unit: in Thousands of New Taiwan Dollars

No.	2024				2025
	Item	Amount	As % of 2023 Total Net Sales	Relationships to the Company	Item	Amount	As % of 2023 Total Net Sales	Relationships to the Company
1	Company N	404,106	24.20	—	Company N	255,952	16.45	—
2	Prodigy	192,644	11.54	Note	Company D	235,045	15.10	—
3	Company H	189,033	11.32	—	—	—	—	—
4	Company D	173,876	10.41	—	—	—	—	—
	Other	710,374	42.54	—	Other	1,065,298	68.45%	—
	Net sales	1,670,033	100.00		Net sales	1,556,295	100.00

Note: An important subsidiary with a 72.5% ownership stake held by the Company.

In fiscal year 2025, the Company's shipment value to N Company decreased compared with fiscal year 2024, primarily due to customer inventory adjustments. Conversely, shipments to D Company increased in 2025 relative to 2024, as a result of the effective expansion achieved through its landmark project.

Beginning in October 2025, Prodigy became a subsidiary of the Company with a 72.5% ownership interest. Accordingly, starting from fiscal year 2025, Prodigy has not been included in this table.

Employee Information for 2025 and 2024 and up to the Date of Printing of this Annual Report

Year		2024	2025	April 30, 2026
Number of Employees	Manager	23	25	25
	Normal Staff	47	43	40
	Direct labor	22	22	22
	Total	86	90	87
Average Ages		41.37	42.13	43.69
Average Service Seniority		7.77	9.61	8.51
Educational Distribution Rate (%)	PhD	1	1	1
	Master	8	8	9
	College	55	59	54
	High School	22	22	22
	Below High School	0	0	0

4. Environmental Protection Expenditure Information

(1) In accordance with legal regulations, the explanation of the application, payment, or establishment status of pollution facility installation permits, pollution emission permits, pollution prevention fees, or the establishment of environmental management personnel:

The Company complies with environmental regulations by outsourcing the transportation and disposal of waste to authorized vendors. There is no legal requirement for the application of pollution facility installation permits, pollution emission permits, payment of pollution prevention fees, or the establishment of dedicated environmental personnel.

(2) Company's Investment in Key Equipment for Environmental Pollution Prevention and its Purpose and Potential Benefits: None.

(3) Overview of the Company's Environmental Pollution Improvement Efforts in 2024 and 2023 and up to the Printing Date of the Prospectus, including Handling Processes for Pollution Dispute Incidents: None.

(4) Losses Incurred by the Company Due to Environmental Pollution in 2024 and 2023 and up to the Date of Printing of the Prospectus (Including Compensation and Inspection Results for Violations of Environmental Regulations), Disclosure of Current and Future Estimated Amounts and Response Measures, with Explanation of Inability to Reasonably Estimate if Applicable: None.

(5) Current Pollution Situation and Its Impact on Company Earnings, Competitive Position, and Capital Expenditure, as well as Major Environmental Capital Expenditure Expected for 2024 and 2025: The Company currently has no pollution issues; therefore, there are no significant capital expenditures required for environmental protection.

5. Labor Relations

(1) Employee welfare measures, continuing education, training, retirement system, and their implementation, as well as the agreements between labor and management and the protection of employees' rights and interests.

① Employee Welfare Measures

We provide diverse employee welfare policies and strive to improve the work environment for our employees in various ways, including food, clothing, housing, transportation, education, and entertainment. The current welfare measures and their implementation are as follows:

A. Labor insurance, health insurance, and group insurance.
B. Regular employee health check-ups.
C. Year-end bonuses, performance bonuses, and preferential prices for company

products

D. Marriage gifts, childbirth subsidies, funeral grants, etc.
E. Year-end banquet and lucky draw.
F. Domestic travel activities.
G. Encouraging employees to form clubs and engage in beneficial physical and mental health activities and subsidizing related activities.
H. Regular quarterly birthday celebrations for employees, with a variety of buffet options and birthday bonuses.
I. Subsidies for departmental dinners every six months.
J. Implementation of employee stock options and employee shareholding meetings.
K. Annual distribution of employee compensation.
L. Issuance of restricted stock awards for employees.

② Employee Continuing Education and Training

In order to enhance the quality of our employees and improve their work efficiency and effectiveness, we provide professional education and training opportunities to our employees according to their job needs on a regular basis.

③ Retirement System

Since July 1, 2005, the Company has established a defined contribution retirement plan in accordance with the Labor Pension Act, applicable to local employees. For the portion of the employee retirement benefits governed by the Labor Pension Act, the Company remits a monthly contribution not less than 6% of the salary to each employee's individual account at the Bureau of Labor Insurance, Ministry of Labor. The disbursement of retirement benefits to employees is based on the accumulated amount in their personal retirement accounts, including accrued earnings, and can be received either as monthly pension payments or as a lump-sum payment upon retirement.

④ Agreements between Labor and Management

The Company provides various channels to facilitate communication and negotiation between labor and management, aiming to understand employee satisfaction with management and benefit systems, thus maintaining a good labor-management relationship. Since its establishment, the Company has maintained harmonious labor-management relations, and no losses have occurred due to labor disputes.

⑤ Measures to Protect Employee Rights and Interests

The Company has always treated its employees with sincerity, establishing a relationship of mutual trust and reliance through enriching welfare systems and fostering a conducive communication environment. While the Company does not have an industrial union, it has legally established and regularly convenes labor-management meetings. Over the years, employees have demonstrated teamwork, cooperating seamlessly with Company decisions, fostering a harmonious atmosphere between labor and management. The Company adheres to relevant labor regulations, safeguards the reasonable rights and interests of employees, provides a safe and healthy working environment, and has established channels such as suggestion boxes and complaint procedures for employees to voice their opinions.

(2) Losses Incurred by the Company Due to Labor Disputes in the Recent Two-Year Period (2024 and 2023) and up to the Date of Printing of the Prospectus (Including Labor Inspection Results for Violations of Labor Standards Act), Disclosure of Current and Future Estimated Amounts and Response Measures, with Explanation of Inability to Reasonably Estimate if Applicable: The Company maintains a good labor-management relationship and has not incurred any losses due to disputes.

Cyber Security Management

(1) Describe the cyber security risk management framework, cyber security policy, specific management plans, and resources invested in cyber security management.

① Cyber Security Risk Management Framework: Cyber Security Management:

The responsible unit of the Company's information security is the General Affairs and Information Division, which has information officer and information security personnel responsible for formulating the Company's information security policy, planning information security measures, and executing related information security operations.

② Cyber Security Policy

The information security policy of the Company is that "Information Security is Everyone's Responsibility". Employees should familiarize themselves with and follow the information security regulations in order to ensure the information security of the Company.

③ Specific Management Plans

A. Formulate policies and regulations related to information security and implement them accordingly.
B. Install firewalls to prevent outsiders from intruding into the system through the network.
C. Install anti-virus software on servers and terminals to minimize the risk of virus infection and attacks.

100

D. Adopt Google's enterprise mail service to ensure that mails are filtered out of harmful messages.
E. Set up data backup mechanism and store the backups off-site.
F. System recovery and data recovery drills are conducted so that operations can be resumed as quickly and smoothly as possible when system damage occurs.
G. Regularly promote information security, remind employees of their awareness of information security, review possible risks, and upgrade software and hardware related resources in a timely manner.

4 Resources Invested in Cyber Security Management

A. Network hardware devices such as firewalls, NAS backup devices, ERP host redundancy.
B. Software systems such as anti-virus software, NAS management software, VPN certified SSL encrypted connection, Google enterprise mail service.
C. With respect to information security services, anti-virus software company supports anti-virus scanning, anti-virus record review, and other security vulnerability analysis on a quarterly basis.
D. Dedicated information security personnel conduct information security maintenance and monitoring, information security incident response and adjustment.

(2) Losses Incurred, Potential Impact, and Mitigation Measures Due to Significant Cybersecurity Incidents in 2024 and Up to the Date of Annual Report Printing. In the Event That They Cannot be Reasonably Estimated, the Fact Thereof should be Explained.

As of the printing date of the annual report, the Company has not incurred any losses due to material cyber security incidents.

7. Important Contracts

Contract Nature	Parties Involved	Contract Period	Main Content	Restrictive Covenants
Sales Contract	Prodigy	January 14, 2025 to December 31, 2026	Prodigy has exclusive retail operations or sales activities for the Prodigy brand within its designated distribution territories (North America, Central America, and South America).	OKBiotech is not permitted to engage in retail operations or sales activities for the Prodigy brand within the designated distribution territories, except for Walmart, Sam's Club, or other companies approved by Prodigy.
Procurement Contract	Chiao In Technology	January 1, 2025 to December 31, 2026	Raw material supply contract	None.

V. Review and Analysis of Financial Status, Financial Performance, and Risk Factors

1. Financial Status:

Unit: in Thousands of New Taiwan Dollars

Year Item	2025	2024	Difference	Change (%)
	Amount	Amount
Current Assets	1,249,253	1,472,665	(223,412)	(15.17%)
Non-current Assets	2,600,171	2,222,654	377,517	16.98%
Total Assets	3,849,424	3,695,319	154,105	4.17%
Current Liabilities	547,601	744,764	(197,163)	(26.47%)
Non-current Liabilities	725,715	383,638	342,077	89.17%
Total Liabilities	1,273,316	1,128,402	144,914	12.84%
Capital	1,448,142	1,470,592	(22,450)	(1.53%)
Capital Surplus	885,197	890,594	(5,397)	(0.61%)
Retained Earnings	263,701	247,529	16,172	6.53%
Other Equity	(83,858)	(116,642)	32,784	(28.11%)
Non-controlling Interests	62,926	74,844	(11,918)	(15.92%)
Total Equity	2,576,108	2,566,917	9,191	0.36%
1. Major Reasons and Impacts of Significant Changes in Assets, Liabilities, and Equity Over 2025 and 2024 (Changes Exceeding 20% and Amounting to NT$10,000 thousand or More): (1) The decrease in current liabilities : The primary reason is that in fiscal year 2025, short-term borrowings decreased by NT$50,000 thousand compared with fiscal year 2024, and accounts payable decreased by NT$72,790 thousand compared with fiscal year 2024. The increase in total assets is mainly due to the increase of NT$730,390 thousand in “property, plant and equipment” compared with 2023 as a result of the construction of new plants in progress in 2024. (2) Increase in Non-current Liabilities : The primary reason is that in fiscal year 2025, due to the construction of a new plant in progress, long-term borrowings increased by NT$284,468 thousand compared with fiscal year 2024. (3) Increase in Other Equity : The primary reason is that in fiscal year 2025, an increase of NT$21,071 thousand in financial assets measured at fair value through other comprehensive income (FVOCI) compared with fiscal year 2024; and In fiscal year 2025, an increase of NT$11,977 thousand in unearned employee compensation compared with fiscal year 2024. 2. Explanation of Future Response Plans for Significant Impacts: The Company's operational status remains stable, with no significant events affecting assets, liabilities, and equity.

2. Financial Performance:

(1) Financial Performance Comparative Analysis:

Unit: in Thousands of New Taiwan Dollars

Year Item	2025	2024	Difference	Change (%)
	Amount	Amount
Net Operating Revenue	1,556,295	1,670,033	(113,738)	(6.81%)
Operating Cost	(1,127,044)	(1,394,378)	267,334	(19.17%)
Gross Profit (Loss) from Operations	429,251	281,948	147,303	52.24%
Operating Expenses	(321,357)	(224,735)	(96,622)	42.99%
Operating Profit	107,894	57,213	50,681	88.58%
Non-operating Income and Expenses	(4,027)	69,897	(73,924)	(105.76%)
Net Profit before Tax	103,867	127,110	(23,243)	(18.29%)
Income Tax Expenses	(6,737)	(20,791)	14,054	(67.60%)
Net Profit after Tax	97,130	106,319	(9,189)	(8.64%)
Other Comprehensive Income	944	3,908	(2,964)	(75.84%)
Total Comprehensive Income for the Year	98,074	110,227	(12,153)	(11.03%)
Major Reasons for Significant Changes in Operating Revenue, Operating Net Income, and Net Income Before Tax in 2025 and 2024 (Amount Changes Exceeding 20%, and Amounts Reaching or Exceeding NT$10,000 thousand)
1. Increase in Gross Profit: The primary reason was that in fiscal year 2025, the product shipment mix (blood glucose meters and blood glucose test strips) differed from that of fiscal year 2024.
2. Increase in Operating Expenses: The primary reason was that, beginning in October 2024, Prodigy became a subsidiary of the Company. Accordingly, three months of its administrative expenses were recognized in fiscal year 2024. In fiscal year 2025, however, the full year's administrative expenses were recognized.
3. Increase in Operating Income: The primary reason was that in fiscal year 2025, the Company's gross profit increased compared with fiscal year 2024.
4. Decrease in Non-operating Income and Expenses: The primary reason was that in fiscal year 2025, foreign exchange gains and losses decreased by NT$68,106 thousand compared with fiscal year 2024.
5. Decrease in Income Tax Expense: The primary reason was that in fiscal year 2025, income tax arising from intercompany applicable tax rate differences decreased by NT$12,261 thousand compared with fiscal year 2024.

(2) Sales Volume Forecast and Underlying Assumptions: Potential Impact on Future Financial Operations and Response Plans

The Company's sales volume volume is based on the sales performance in 2025, taking into account industry trends, market demand, the company's production capacity, and forecasted customer demand. The Company anticipates maintaining a growth trend in sales revenue in future years. In response to industry opportunities, the Company will focus on effectively allocating and utilizing funds in financial operations to strengthen

the company's capabilities and meet the requirements for business development and growth.

3. Cash Flow:

(1) Analysis of Recent Year Cash Flow Changes

Unit: in Thousands of New Taiwan Dollars

Year Item	2025	2024	Difference	Change (%)
Operating Activities	318,860	65,903	252,957	383.83%
Investing Activities	(398,496)	(444,928)	46,432	(10.44%)
Financing Activities	113,748	338,025	(224,277)	(66.35%)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	2,903	(4,575)	7,478	(163.45%)
Total	34,112	(41,000)	75,112	(183.20%)
Analysis on Changes in Cash Flow: (1) Operating Activities: Net cash inflows from operating activities increased by NT$252,957 thousand in fiscal year 2025 compared with fiscal year 2024, primarily attributable to an increase in profit before tax in fiscal year 2025; and a decrease in accounts receivable in fiscal year 2025 relative to fiscal year 2024. (2) Investing Activities: Net cash outflows from investing activities decreased by NT$46,432 thousand in fiscal year 2025 compared with fiscal year 2024, primarily due to In fiscal year 2024, the Company acquired a 27.5% equity interest in Prodigy, thereby making Prodigy a subsidiary. After deducting the cash acquired, this transaction resulted in NT$136,914 thousand of cash outflows from investing activities. No such transaction occurred in fiscal year 2025. (3) Financing Activities: Net cash inflows from financing activities decreased by NT$224,277 thousand in fiscal year 2025 compared with fiscal year 2024, primarily attributable to the Company's new long-term borrowings of NT$294,400 thousand in fiscal year 2025, undertaken for the construction of a new plant. (1) In summary, the cash and cash equivalents increased by NT$34,112 thousand at the end of 2025 compared to 2024.

(2) Remedial Actions for Liquidity Shortfall: None.
(3) Cash Flow Projection for Next Year

Unit: in Thousands of New Taiwan Dollars

Cash Balance, January 1,2023 (Note)①	Expected Net Cash by Operating Activities②	Expected Cash Inflow③	Expected Cash Surplus (Deficit)①+②-③	Remedy for Liquidity Shortfall
				Investment Plan	Financing Plan
314,473	508,070	(558,789)	263,754	-	-
Note: Cash balance includes cash and bank deposits. 1. Analysis of Future One-Year Cash Flow Changes: (1) Operating Activities: The Company expects to generate cash inflows from operating activities of NT$1,733,532 thousand arising from the anticipated increase in revenue, while corresponding cash outflows related to operating costs are projected at NT$1,225,462 thousand. Accordingly, the net cash inflows from operating activities are estimated to amount to NT$508,070 thousand. (2) Investment and Financing Activities: The Company anticipates net cash outflows from investing activities amounting to NT$302,172 thousand. In addition, cash dividends, directors' remuneration, and employees' compensation are expected to total NT$61,803 thousand. Furthermore, the Company plans to execute a cash capital reduction of

NT$144,814 thousand and repay bank borrowings of NT$50,000 thousand. Accordingly, the projected net cash outflows from financing activities are estimated at NT$256,617 thousand.

Remedy for Liquidity Shortfall: None.

4. The Effect upon Financial Operations of any Major Capital Expenditures During 2025:

Due to the Company's favorable operating condition, the cash inflow from operating activities remains stable. In recent years, significant capital expenditures have been primarily financed using internally generated funds from operations. As a result, there is no significant impact on the Company's finances.

5. Recent Year Investment Policy, Major Reasons for Profit or Loss, Improvement Plans, and Future Year Investment Plans:

(1) Recent Year Investment Policy

The investment policy of the Company is aimed at fostering vertical integration and strategic alliances, thereby reducing costs, expanding customer base and market share, and introducing new product lines to enhance the profitability of the Company.

(2) Major Reasons for Profit or Loss in Investment Ventures and Improvement Plans

December 31, 2025; Unit: in Thousands of New Taiwan Dollars

Item / Explanation	Investment Amount	Policy	Major Reasons Contributing to Profit or Loss	Investment (Loss) Profit for 2025	Improvement Plan
Prodigy Diabetes Care, LLC	607,101	By becoming a subsidiary of the Company, it is able to commence in-depth cooperation and further penetrate the American market.	Long-term cultivation has resulted in the accumulation of a high-quality customer base, and the company maintains a certain market position in the United States with steadily increasing revenue.	49,935	—
Pu Yuan Biotech Co., Ltd.	73,454	Expanding into the medical device products beyond blood glucose meters.	Yet to achieve economies of scale.	(5,655)	Actively collaborating with pharmaceutical companies to increase revenue and effectively control costs.
Aeon Diagnostic Technology Corporation	39,235	Expanding the product line to include metal test pieces.	Increasing blood glucose meter OEM capacity and production lines.	(4,763)	Actively developing products for mass production.
OK Biotech Pte. Ltd.	4,122	Developing Singapore market	Still in the initial stages, yet to achieve economies of scale.	216	Actively cultivating the Singapore market.
Swistek Technology Co., Ltd.	24,500	R&D Department	In the process of product development.	578	Actively developing products for mass production.

(3) Investment Plan for the Coming Year

Continuously implementing the Company's investment policy, and making appropriate investments to meet the expanding needs of the Company's transformation, thereby

enhancing overall profitability.

6. Analysis and Evaluation of Risk Factors for 2025 and Up to the Date of Annual Report Printing

(1) Impact of Interest Rates, Exchange Rate Fluctuations, and Inflation on the Company and Future Response Measures

① Impact of Interest Rate Fluctuations:

Over 2025 and 2024, the interest expenses of the Company as a percentage of net operating income were 0.70% and 0.37% respectively. This proportion in relation to operating income is minimal, indicating that interest rate fluctuations have had little impact on the Company. However, as the Company's operational scale expands, the daily demand for funds from banks increases. Therefore, the finance department of the Company regularly evaluates bank interest rates and maintains close communication with banks to secure more favorable borrowing rates, thereby minimizing the impact of interest rate fluctuations on the Company.

② Impact of Exchange Rate Fluctuations

Over 2025 and 2024, the exchange (loss) gain as a percentage of net revenue was (1.21%) and, 2.95% respectively. Given that the Company's sales are primarily made in currencies other than the local currency, with the predominant revenue being denominated in US dollars, exchange rate fluctuations have a significant impact. To mitigate the associated exchange rate risks and alleviate the impact of exchange rate fluctuations on the Company's revenue and profitability, the following methods are employed:

A. Continuously gather information on exchange rate trends and enhance consultations with bank experts in foreign exchange to understand exchange rate movements.

B. Factor in the potential impact of exchange rate fluctuations when quoting prices to customers, aiming to mitigate the effects of exchange rate movements on sales prices.

③ Impact of Currency Inflation

There's no significant impact of currency inflation on the Company's profitability. In addition to closely monitoring market price fluctuations, the company actively develops sources for raw materials supply to reduce production costs. Maintaining good relationships with customers, the Company timely communicates production costs to them. Thus, the Company is currently able to effectively control the impact of currency inflation on its profitability.

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(2) Policy, Main Reasons for Profit or Loss, and Future Measures Regarding High-Risk, High-Leverage Investments, Lending Fund to Others, Endorsement Guarantees, and Derivative Trading:

① Policy on High-Risk, High-Leverage Investments: Main Reasons for Profit or Loss and Future Response Measures

The Company has dedicated itself to the development of its core business over the years, emphasizing research and development of core technologies and the expansion of business marketing. The Company adheres to a conservative and prudent management approach, maintaining financial soundness. Therefore, in the recent fiscal year and up to the printing date of the annual report, the company has not engaged in high-risk, high-leverage investment activities.

② Policy, Main Reasons for Profit or Loss, and Future Measures Regarding Investments, Lending Fund to Others, Endorsement Guarantees, and Derivative Trading:

Establishment of "Procedure for Lending Funds to Other Parties," "Procedures for Endorsement and Guarantee," and "Procedure for Acquisition or Disposal of Assets" as the basis for relevant operations.

In the recent fiscal year and up to the date of printing of the annual report, the Company provided an endorsement guarantee of NT$15,000 thousand to Pu Yuan Biotechnology Co., Ltd., of which NT$5,000 thousand has been utilized. Pursuant to Question 37 of the "FAQs on Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies", the Company's Board of Directors resolved on March 9, 2023 to reclassify the overdue account of RMD Mediaids Limited, the Company's customer in India, as a disguised form of financing, and reclassified it as other receivables of NT$18,601 thousand. The Company filed a commercial arbitration against the aforementioned amount of NT$18,601 thousand in 2023, and reported it to the 15th and 16th meetings of the 3rd Audit Committee. However, the Company assessed that it was not easy to recover the overdue amount. As approved by the Board of Directors on March 11, 2025, there will be no further recourse for this overdue account and therefore the Company has removed this Indian customer, RMD Mediaids Limited, from the recipient of loaning of funds from the Company with effect from March 2025. The Company has not engaged in any derivative transactions in the recent fiscal year and up to the date of printing of the annual report.

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(3) Future R&D Plans and Expected R&D Spending

① Future R&D Plans are as Follows:

R&D Topics	R&D Content
1. Non-invasive Blood Glucose Monitor (Utilizing this technology for blood glucose measurement)	(1) Initially, research both in academia and industry on non-invasive blood glucose measurement technology, and further define the development direction. Establish a database of blood glucose characteristics, where a more comprehensive database can provide more accurate blood glucose measurement techniques.
(2) Experiment and refine the system model to establish an accurate and rapid self-testing technique, reducing the need for diabetic patients to use needles and consumables. Provide a safe, painless, low-cost, and accurate blood glucose monitoring device.
2. Continuous Glucose Monitoring System (CGM)	Developing disposable minimally invasive continuous glucose monitoring (CGMS) related application products, investing in research and development to manufacture high-tech, high-value-added, and high-growth market continuous glucose monitoring system medical devices. This allows users to easily monitor physiological metabolic changes and provide feedback. At the same time, the measured results will be analyzed using big data, with the goal of establishing a digital healthcare and cloud service platform to assist users in more easily self-managing blood glucose levels.
3. Multi-functional Detection System (Including blood glucose measurement function, as well as techniques for measuring uric acid, cholesterol, cardiac enzymes, blood clotting, etc.)	(1) The system is divided into several independent subsystems for preliminary research and evaluation. Subsequently, development is carried out through industry-academia collaboration, followed by system integration by the company.
(2) Due to the complexity of blood analysis, specific factors need to be stimulated. This involves integrating biomedical and electronic technologies to establish a system model for blood analysis time.
4. Smart Blood Glucose Meter	Through the 3G/4G mobile platform, the smart blood glucose meter can automatically connect to the company or hospital server to synchronize terminal records. It also provides automatic measurement reminders and offers users medical and medication advice.

② Expected R&D Spending

The expected spending for research and development (R&D) will be gradually allocated based on the progress of new technology development. As business revenue grows, the annual R&D expenditure can be gradually increased to support future R&D plans, maintain core technology, and enhance the company's market competitiveness. In 2025, R&D expenses accounted for 3.79% of operating income. In the future, R&D expenditure will continue to be allocated based on progress and results, with an estimated annual R&D expenditure of over 3% of combined revenue.

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(4) Impact of Significant Domestic and International Policy and Legal Changes on Company Financial Operations and Response Measures:

The Company operates in accordance with relevant domestic and international laws and regulations on a daily basis. We constantly monitor the trends in domestic and international policy development as well as changes in laws to fully understand market environment changes. The Company proactively propose response measures in a timely manner to mitigate the impact of significant domestic and international policy and legal changes on the Company's financial operations. Significant Domestic and International Policy and Legal Changes in the Most Recent Fiscal Year and Up to the Date of Printing of the Annual Report: There were no significant impacts on the financial operations of the Company.

(5) Impact of Technological Changes (Including Cyber Security Risks) and Industry Transformation on Company Financial Operations and Response Measures.

The Company constantly monitors technological changes in the relevant industry, ensuring a comprehensive understanding of market trends. The Company evaluates the impact on the company's operations and implement relevant planning and response measures accordingly. Recent Technological Changes (Including Cyber Security Risks) and Industry Transformation up to the Date of Printing of the Annual Report: There were no significant impacts on the financial operations of the Company.

(6) Impact of Corporate Image Change on Enterprise Crisis Management and Response Measures

Since its establishment, the Company has complied with relevant laws and regulations, actively strengthened internal management, enhanced management quality and performance, while maintaining harmonious labor relations. The Company continues to uphold an excellent corporate image. Up to the date of printing of the annual report, there have been no incidents affecting the corporate image.

(7) Expected Benefits, Potential Risks, and Response Measures of Mergers and Acquisitions

In the most recent fiscal year and up to the date of printing of the Annual Report, the Company has not engaged in any significant mergers or acquisitions, nor have there been any plans in place for such activities. However, in the future, if there are any plans for mergers or acquisitions, the company will adopt a cautious evaluation approach. It will consider whether the merger can bring tangible synergies to the company to ensure the protection of shareholder interests.

(8) Expected Benefits, Potential Risks, and Response Measures of Factory Expansion: None.

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(9) Risks and Response Measures for Concentrated Purchasing or Sales

① Risks and Response Measures for Concentrated Purchases The Company does not have any instances where sales to a single customer account for more than 30% of total sales.

② Risks and Response Measures for Concentrated Sales The Company does not have any instances where sales to a single customer account for more than 30% of total sales.

(10) Impact, Risks, and Response Measures of Significant Transfer or Change in Ownership of Directors or Shareholders Holding Over 10% of Shares: None.

(11) Impact, Risks, and Response Measures of Changes in Management Control The management team of the Company is dedicated to sustainable business development. As of the recent fiscal year and up to the date of printing of this Annual Report, there have been no changes in ownership or management control of the Company.

(12) Significant Litigation, Non-litigation, or Administrative Disputes Involving the Company, Directors, Supervisors, General Managers, Substantial Controlling Shareholders Holding Over 10% of Shares, and Subsidiaries, Where Outcomes May Significantly Affect Shareholder Equity or Securities Prices, Including Disputed Facts, Subject Amounts, Litigation Commencement Dates, Main Litigants, and Handling Status Up to the Date of Printing of the Annual Report

① Disclosure of Litigation, Non-Litigation, or Administrative Disputes with Significant Impact on Shareholders' Equity or Securities Prices of the Company in 2024 and 2023 and Up to the Date of Annual Report Printing: None.

② Lawsuits and Legal Proceedings Involving Company Directors, Supervisors, General Managers, Substantial Shareholders with Ownership Exceeding 10%, and Subsidiaries, in 2024 and 2023 up to the Date of Annual Report Printing: None.

③ Occurrences of Securities and Exchange Act Article 157 Events Involving Company Directors, Supervisors, Executives, and Shareholders Holding Over 10% of Shares, in 2024 and 2023 and up to the Printing Date of the Annual Report, and Current Company Handling: None.

(13) Other Significant Risks and Corresponding Measures in the Most Recent Fiscal Year and up to the Printing Date of the Annual Report: None.

Other Significant Matters None.

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VI. Special Items to Note

1. Related Information of Subsidiaries:

(1) Consolidated Financial Statements of Subsidiaries: Please refer to MOPS for details.
(2) Related Reports:

① Subsidiaries Chart:

Basic Information of Each Subsidiary

Unit: in Thousands of New Taiwan Dollars

Company	Establishment Date	Place of Registration	Paid-in Capital	Business Activities
Prodigy Diabetes Care LLC	August 26, 2009	7224 Statesville Rd – Suite A Charlotte, NC 28269	USD 100	Sales of blood glucose meters and blood glucose test strips
Aeon Diagnostic Technology Corporation	May 19, 2015	1F., No. 24, Ln. 73, Rongxing Rd., Bade Dist., Taoyuan City	40,500	Manufacturing, wholesale, and retail of electronic materials and medical equipment
Pu Yuan Biotech Co., Ltd.	August 13, 2010	4F., No. 51, Ln. 35, Jihu Rd., Neihu Dist., Taipei City	68,750	Manufacturing, wholesale, and retail of electronic materials and medical equipment
OK Biotech Pte. Ltd.	December 8, 2021	362 Upper Paya Lebar ROAD #05-03 DA JIN Factory Building Singapore	4,122	Domestic sales in Singapore.

③ Shareholders in Common of the Company and Its Subsidiaries with Deemed Control and Subordination None.

$\odot$ Description of Business Operations of Subsidiaries:

A. Prodigy Diabetes Care LLC: Sales of blood glucose meters and blood glucose test strips in the U.S. and the Americas.
B. Aeon Diagnostic Technology Corporation specializes in the manufacturing and sale of metal blood glucose test strips.
C. Pu Yuan Biotech Co., Ltd.: Primarily engaged in the manufacturing and sale of sprayers.
D. OK BIOTECH PTE. LTD.: Domestic sales in Singapore.

$\mathbb{S}$ Names of Directors, Supervisors, and General Managers of Each Related Enterprise, Along with Their Shareholdings or Contributions to the Subsidiaries:

Rosters of Directors, Supervisors, and General Manager of OK Biotech's Subsidiaries

Unit: in Thousands of New Taiwan Dollars; %

Company	Title	Name or Representative	Shareholding
			Shares	Shareholding Percentage
Prodigy Diabetes Care LLC	Chairman (Note 1)	Lai, Chia-De	(Note 2)	72.5
Aeon Diagnostic Technology Corporation	Chairman (Note 1)	Lai, Chia-De	3,923,490	71.95
	Director (Note 1)	Hou, Chi-Cheng	3,923,490	71.95
	Director (Note 1)	Ho,Shao-Chi	3,923,490	71.95
	Director	Chang, Kuei-Mei	139,280	2.55
	Director	Chang, Yen-Hsiang	139,860	2.56
	Supervisor	Lin, Shih-Wei	202,500	3.71
	General Manager	Chang, Yen-Hsiang	139,860	2.56
Pu Yuan Biotech Co., Ltd.	Chairman (Note 1)	Lai, Chia-De	5,089,584	60.05
	Director (Note 1)	Lu,Yen-Li	5,089,584	60.05
	Director (Note 1)	Wu, Shu-Man	5,089,584	60.05
	Director (Note 1)	Hou, Chi-Cheng	5,089,584	60.05
	Director	Chuang, Shih-Ming	231,299	2.73
	Director	Hung, Chih-Chung	234,146	2.76
	Director	Chen, Yu-Chih	182,612	2.15
	Supervisor	Liang, Jo-I	37,500	0.44
	General Manager	Chuang, Shih-Ming	231,299	2.73
OK Biotech Pte. Ltd.	Chairman (Note 1)	Lai, Chia-De	500,000	100.00
	Director (Note 1)	Fang, Yu-Hao	500,000	100.00

Note 1: The representative of the Company.
Note 2: Non-stock corporation.

Operating Overview of Each Subsidiary

Unit: in Thousands of New Taiwan Dollars

Company	Capital	Assets	Total Liabilities	Net Worth	Operating Revenue	Operating Profit	Net Income (Loss)	Basic Earning (Loss) Per Share (NT$)
Prodigy Diabetes Care LLC	USD 100	251,753	159,918	91,836	481,739	75,350	78,464	(Note 1)
Aeon Diagnostic Technology Corporation	54,528	44,744	31,664	13,080	58,020	(4,355)	(3,878)	(0.71)
Pu Yuan Biotech Co., Ltd.	84,750	50,953	41,324	9,629	18,994	(23,108)	(13,105)	(1.55)
OK Biotech Pte. Ltd.	4,122	2,086	702	1,384	3,215	27	203	0.41

Note 1: Non-stock corporation.

Private Placement Securities in 2025 and as of the Date of this Annual Report: None.
Status of Subsidiaries Holding or Disposing of Company Stock in 2024 and up to the Printing Date of the Annual Report: None.
Other Necessary Supplement None.

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OK Biotech Co., Ltd.

Chairman: LAI, CHIA-DE

AI assistant

OK BIOTECH — Annual Report 2025

52388_rns_2026-05-13_07077cab-995e-4c61-a20b-1d08e9658772.pdf

OK Biotech Co., Ltd.

Annual Report 2025

Table of Contents

I. Reports for Shareholder

II. Corporate Governance Report

III. Fundraising Situation

2. Summary of 2026 Business Plan

(1) Management Policy

(2) Expected Sales Quantity and Basis

(3) Important Production and Sales Policies

3. Future Company Development Strategy

4. Impact of External Competitive, Regulatory, and Macroeconomic Environment

2. Remuneration for Directors, General Manager, and Vice General Manager in 2025

3. Company Governance-operating Circumstances

4. Information on the Certified Public Accountant's Compensation:

5. Information on Change of Auditor

② Dividend Distribution:

2. Corporate Bond Transactions:

(1) Corporate Bond Transactions:

6. The Following Items Should Be Recorded Regarding the Handling of Restricted Stock Awards

Names of Managers and the Top Ten Employees Acquiring Restricted Stock Awards and their Acquisition Status

B. Domestic Blood Glucose Testing Medical Device Manufacturers

$\odot$ Competition Situation

B. Production Strategy

C. Management Strategy

2. Market and Sales Overview

(1) Market Analysis

① Sales Area of Main Products

③ Market Share

① The Significant Applications of the Main Products

(3) Supply of Main Raw Materials

4. Environmental Protection Expenditure Information

5. Labor Relations

4 Resources Invested in Cyber Security Management

7. Important Contracts

V. Review and Analysis of Financial Status, Financial Performance, and Risk Factors

1. Financial Status:

2. Financial Performance:

3. Cash Flow:

(1) Analysis of Recent Year Cash Flow Changes

4. The Effect upon Financial Operations of any Major Capital Expenditures During 2025:

5. Recent Year Investment Policy, Major Reasons for Profit or Loss, Improvement Plans, and Future Year Investment Plans:

(1) Recent Year Investment Policy

(2) Major Reasons for Profit or Loss in Investment Ventures and Improvement Plans

(3) Investment Plan for the Coming Year

6. Analysis and Evaluation of Risk Factors for 2025 and Up to the Date of Annual Report Printing

VI. Special Items to Note

1. Related Information of Subsidiaries:

Rosters of Directors, Supervisors, and General Manager of OK Biotech's Subsidiaries

Operating Overview of Each Subsidiary

More from OK BIOTECH

OK BIOTECH Annual Report 2025