Common Stock Code: 1321
http://mops.twse.com.tw/
http://www.opc.com.tw/

OCEAN PLASTICS CO., LTD.

2025 Annual Report

Printed on April 20, 2026

(I) Spokesperson and Deputy Spokesperson

Spokesperson

Name: CHIU, CHUN-FU

Title: Manager

Tel: (02) 2306-2131

(02) 2308-1188

E-mail: [email protected]

Deputy Spokesperson

Name: CHENG, YU-FENG

Title: Manager

Tel: (02)2306-2131

(02)2308-1188

E-mail: [email protected]

(II) Headquarters, Branches and Plant:

Name	Address	Tel
Headquarters	5F & 6F, No. 310, Juguang Rd., Taipei City	(02)2306-2131
(02)2308-1188
Plastic Processing Unit	No. 38-1, Xiapuding, Neghborhood 3, Xiapu Vil., Xinwu Dist., Taoyuan City	(03)486-1281
Building materials Unit	No. 539, Longxing Rd., Chungli Dist., Taoyuan City	(03)438-4626~7
PVC raw material Unit	No. 375, Haihu East Rd., Haihu Vil., Luzhu Dist., Taoyuan City	(03)354-1626
PU Unit	No. 375, Haihu East Rd., Haihu Vil., Luzhu Dist., Taoyuan City	(03)354-3080
Tainan Contact Office	No. 131, Jianping 14th St., Tainan City	(06)297-4511~2

(II) Stock Transfer Agent:

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

Address : 5F, No. 2, Sec. 1, Chongqing S. Rd., Taipei City

Tel : (02)2389-2999

Website : https://www.kgi.com.tw/zh-tw/institutional-services/stock-agent

(IV) Nnames of the certified public accountants who duly audited the annual financial report for the most recent fiscal year, and the name, address and telephone number of the accounting firm to which they belong

Names: CPA YU, SHENG-HO

CPA LUO, JUI-CHIH

Name of Accounting Firm: KPMG Taiwan

Address : 68F, No. 7, Sec. 5, Xinyi Rd., Taipei City 11049

Tel : (02)8101-6666

Fax : (02)8101-6667

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

(V) Name of any exchanges where the company's securities are traded offshore, and the method by which to access information on said offshore securities: No.

(VI) Corporate Website: http://www.opc.com.tw

Table of Contents

Contents

Page

I. Letter to Shareholders 1
II. Corporate Governance Report 3
1. Directors, Supervisors, General Manager, Deputy General Manager, Assistant Managers and Heads of Departments and Branch Organizations 3
2. Diversity and Independence of the Board of Directors 7
3. Remuneration of Directors, Supervisors, General Manager and Deputy General Manager in the Most Recent Year 10
4. Implementation of Corporate Governance 13
5. Information on the professional fees of the attesting CPAs 38
6. Replacement of CPA 38
7. Where the company's chairperson, General Manager, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its CPAs or at an affiliated enterprise of such accounting firm 38
8. Any transfer of equity interests and pledge and change in equity interests by a director, supervisor, managerial officer, or shareholder with a stake of more than 10 percent 38
9. Relationship information, if among the company's 10 largest shareholders any one is a related party or a relative within the second degree of kinship of another 39
10. The total number of shares and total equity stake held in any single enterprise by the company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly by the company 40

III. Capital Overview 41
1. Capital and Shares 41
2. Corporate Bonds 43
3. Preferred Shares 43
4. Global Depository Receipts 43
5. Employee Stock Options 43
6. Issuance of New Restricted Employee Shares 43
7. Status of New Shares Issuance in Connection with Mergers and Acquisitions 43
8. Financing Plans and Implementation 43

VI. Operational Highlights 44
1. Business Activities 44
2. Market and Sales Overview 47
3. Human Resources 52
4. The information of employees employed for the 2 most recent fiscal years, and during the current fiscal year up to the date of publication of the annual report 52
5. Labor Relations 52
6. Cyber Security Operations 55
7. Important Contracts 57

V. Review of Financial Conditions, Operating Results, and Risk Management 58
1. Financial Conditions 58
2. Financial Performance 59

Contents

Analysis of Cash Flow 60
Major Capital Expenditure Items 60
Investment Policy in Last Year, Main Causes for Profits or Losses, Improvement Plans and the Investment Plans for the Coming Year 60
Analysis and Assessment of Risks 60
Other importantmatters 61

VI. Special Disclosure 62

Summary of Affiliated Companies 62
Private Placement Securities in the Most Recent Years 62
Other Necessary Items to Be Supplemented 62
Any event that had a material impact on the rights of shareholders or the prices of securities provided in Subparagraph 2, Paragraph 2, Article 36 of the Securities and Exchange Actoccurred 62

I. Letter to Shareholders

Dear shareholders:

The global petrochemical industry faced multiple challenges in 2025. The imposition of additional tariffs on Taiwanese goods by the United States and the appreciation of the New Taiwan Dollar eroded profits. Furthermore, capacity expansion in Mainland China led to a market imbalance between supply and demand. Amidst crude oil fluctuations and geopolitical pressures, the Company's operations shifted from profit to loss last year, indicating that the external environment has had a significant impact on financial performance. Looking ahead, we will continue to promote cost control, product high value-added transformation, and diversified strategic positioning to create long-term value for our shareholders.

1. Business performance in the Previous Year

(1) 2025 Implementation achievements of business plan:

A. Revenue Performance: Consolidated operating revenue for 2025 was NT$3,594,886 thousand (a decrease of 23.24% compared to the previous year).

B. Profitability: Gross profit was NT$259,339 thousand (gross margin of 7.21%), with an operating loss of NT$133,017 thousand.

C. Net Income/Loss: Net loss before tax was NT$154,501 thousand; net loss for the period was NT$275,549 thousand; and the total comprehensive loss for the period was (NT$287,315) thousand.

D. Budget Execution: In accordance with regulations, there was no requirement to prepare a financial forecast for 2025.

(2) Analysis of financial income and expenses and profitability:

(Parent-Company-Only Financial Statement)
Item	FY2024	FY2025	Increase or decrease	Increase or decrease rate
Net Operating Revenue	4,010,519	3,001,344	-1,009,175	-25.16%
Net Income	166,934	(275,549)	-442,483	-265.06%

Return on Assets: -3.29%, Return On Equity: -4.69%, Net Profit Margin: -9.18%, and Earnings Per Share: NT$-1.25.

The Company’s revenue for the current period declined significantly, primarily due to the decline in global crude oil prices, petrochemical overcapacity in Mainland China, and uncertainties in U.S. trade policies. These factors put downward pressure on the prices of plastic raw materials, leading to a simultaneous decrease in the sales volume and selling price of PVC, which in turn reduced revenue. Furthermore, fluctuations in exchange rates and losses on valuation of investments led to an increase in non-operating losses, resulting in the Company’s overall profitability turning from profit to loss.

(3) Situation on R&D

A. Eco-friendly Materials: Enhancing the proportion of bio-based content and developing membrane materials that meet both medical and sustainability requirements.

B. Packaging Innovation: Developing transparent, high-strength plastics specifically for electronic components and parts.

C. Green Building Materials: Researching and developing flame-retardant, wood-textured foamed boards, while optimizing production adaptability (processability).

D. Water-based Technology: Evaluating solvent-free water-based resin manufacturing processes to balance environmental protection and functional performance.

2. Summary of the current year’s business plan:

In response to geopolitical challenges, the Company will focus on the Asia-Pacific and emerging markets to reduce reliance on any single market, while implementing smart manufacturing to enhance cost control. On the R&D front, we will concentrate on high value-added sectors such as medical, electronics, and green building materials. Simultaneously, we will implement carbon neutrality initiatives and asset revitalization to steadily enhance operational efficiency.

3. Future company development strategy:

We will continue to invest in process improvements, pursue stable returns, and maintain strong

cooperative relationships with our customers and suppliers. By leveraging R&D innovation and asset revitalization, we aim to strengthen our market position, ensuring sustained growth in a volatile environment and creating long-term value for our shareholders.

Subject to the external competitive environment, the regulatory environment and the overall business environment:

In response to global competition and stringent environmental regulations, the Company will fulfill its social responsibilities through the Sustainability Promotion Task Force and the implementation of greenhouse gas inventories. By leveraging R&D and process improvements to address macroeconomic fluctuations, we ensure the safeguarding of shareholders' rights and interests while simultaneously advancing corporate sustainable development.

Sincerely

Chairperson TAN, KIN-MEN

II. Corporate Governance Report

Directors, Supervisors, General Manager, Deputy General Manager, Assistant Managers and Heads of Departments and Branch Organizations:
(1) Directors and Supervisors:

Information of Directors and Supervisors (1)
April 6, 2026

Title	Nationality or Place of Incorporation	Name	Gender/Age	Date Elected	Term (years)	Date First Elected	Shareholding when Elected	Current Shareholding	Spouse & Minor Shareholding	Shareholding by Nominee Arrangement	Experience (Education)	Other Position	Executive, Directors or Supervisors who anteprouses or within Two Degrees of Kinship	Note
Shares	%	Shares	%	Shares	%	Shares	%	Title	Name	Relationship
Chairman	Taiwan (ROC)	TAN, KIN-MEN	M 71-80	05/31/2024	3	6/3/1988	4,695,202	2.07	4,695,202	2.07	-	-	-	-
Director (Note 1)	Taiwan (ROC)	Hsuan Yang Investment Co., Ltd.	F 51-60	05/31/2024	3	6/30/2003	1,440,247	0.63	1,440,247	0.63	-	-	-	-
Representative Wang Hai-Lun	6/30/2018
Director (Note 1)	Taiwan (ROC)	Want Want Co., Ltd.	M 51-60	05/31/2024	3	5/14/1996	2,976,669	1.31	2,976,669	1.31	-	-	-	-
Representative Hung, Yung-Tsung	1/1/2023
Director (Note 1)	Taiwan (ROC)	Li Hsiang Industrial Co., Ltd	M 61-70	05/31/2024	3	6/30/2015	310,000	0.14	310,000	0.14	-	-	-	-
Representative Chu Tsung-Pin	6/30/2012
Director	Taiwan (ROC)	Peter Chen	M 61-70	05/31/2024	3	6/3/1985	3,943,860	1.74	3,943,860	1.74	-	-	-	-
Director	Taiwan (ROC)	Hsieh Tzu-Yun	M 71-80	05/31/2024	3	6/30/2000	10,000	0.004	10,000	0.004	-	-	-	-
Independent Director	Taiwan (ROC)	Chang Yi-Yun	F 61-70	05/31/2024	3	6/30/2015	-	-	-	-	-	-	-	-
Independent Director	Taiwan (ROC)	Hou Ming-Li	M 51-60	05/31/2024	3	6/30/2015	-	-	-	-	-	-	-	-

Title	Nationality or Place of Incorporation	Name	Gender/Age	Date Elected	Term (years)	Date First Elected	Shareholding when Elected		Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Experience (Education)	Other Position	Executive, Directors or Supervisors who are spouses or within Two Degrees of Kinship
							Shares	%	Shares	%	Shares	%	Shares	%			Title	Name	Relationship
Independent Director	Taiwan (ROC)	Hsu, Tsung-Chih	M 61-70	05/31/2024	3	5/31/2024	-	-	-	-	-	-	-	-	Depar. of Public Finance & Taxation, National Cheng Chi Univ.	None	None	None	None
Independent Director	Taiwan (ROC)	Chien, Hsueh-Li	M 61-70	05/31/2024	3	7/27/2021	-	-	-	-	-	-	-	-	Master of Business, Master of Industrial Engineering and Operational Studies, Cornell Univ., USA	General Manager of Fu-Chu General Contractor Co., Ltd.	None	None	None

Note 1: The major shareholders of corporate shareholders are listed in the attached table.

Table 1: Major shareholders of the institutional shareholders
April 6, 2026

Name of Institutional Shareholders	Major Shareholders
	Name	%
Li Hsiang Industrial Co., Ltd.	Shih Chin-Yun	97 %
Hsuan Yang Investment Co., Ltd.	Chen Chin-Wen	20 %
	Chen Chin-Hsin	20 %
	Chen Chin-Sheng	20 %
	Chen Ling-Mei	10 %
	Chen Jung-Jung	10 %
	Chen Chou Tsai-Yu	20 %
Want Want Co., Ltd.	Tsai Yen-Ming	70.37 %
	Peng Yu-Man	16.22 %
	Tsai Shao-Chung	6.82 %
	Tsai Wang-Chia	6.59 %

Information of Directors and Supervisors (2)

Disclosure of directors' professional qualifications and independence of the independent directors:

Name	Professional Qualification and Experience (Note1)	Independence Criteria (Note 2)	Number of Other Public Companies in Which the Individual is Concurrently Serving as an Independent Director
Chairman Chen Kin-Men	Qualified with the requirement of at least 5 years work experience, currently serving as the Chairman and General Manager of the company, and not been a person of any conditions defined in Article 30 of the Company Act	Not applicable	None
Director Wang Hai-Lun	Qualified with the requirement of at least 5 years work experience, used to be the deputy manager of the financial department of Yee Fong Chemical & Industrial Co; currently is the manager of the financial department of Yee Fong Chemical & Industrial Co., and not been a person of any conditions defined in Article 30 of the Company Act.	Not applicable	None
Director Hung, Yung-Tsung	Qualified with the requirement of at least 5 years work experience, used to be Senior Vice General Manager of Mercuries Life Insurance Co., Ltd., Senior Director, Manager of Investment Department, Want Want Group and not been a person of any conditions defined in Article 30 of the Company Act.	Not applicable	None
Director Chu Tsung-Pin	Qualified with the requirement of at least 5 years work experience, used to be the special assistant of chairman of MiTAC Incorporated, manager of Planning Dept., Ocean Plastics Co., Ltd., Project Manager of Mainland China, Optimax Technology Corporation, and is currently the director of this company, and not been a person of any conditions defined in Article 30 of the Company Act.	Not applicable	None
Director Peter Chen	Qualified with the requirement of at least 5 years work experience, used to be the special assistant of this company, and is currently the director of this company, and not been a person of any conditions defined in Article 30 of the Company Act.	Not applicable	None
Director Hsieh Tzu-Yun	Qualified with the requirement of at least 5 years work experience, used to be the chairman of Xintai Travel Agency Co., Ltd., and is currently the consultant of Hsin Tai Travel & Tours, and not been a person of any conditions defined in Article 30 of the Company Act.	Not applicable	None
Independent Director Chang Yi-Yun	Qualified with the requirement of at least 5 years work experience, used to be dean, School of Law, Fu Jen Catholic University, and is currently the Deputy General Manager of Fu Jen Catholic University, director of Great Eastern Resins Industrial Co., Ltd., independent director of Advanced Lithium Electrochemistry (Cayman) Co.,Ltd., and independent director of YFY Inc., and not been a person of any conditions defined in Article 30 of the Company Act.	(1) Not an employee of the company or any of its affiliates.
(2) Nota director or supervisor of the company or any of its affiliates.
(3) Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate of one percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of a managerial officer under subparagraph 1 or any of the persons in the preceding (2) & (3).
(5) Not a director, supervisor, or employee of a corporate shareholder that directly holds five percent or more of the total number of issued shares of the company, or that ranks among the top five in shareholdings, or that designates its representative to serve as a director or supervisor of the company under Article 27, paragraph 1 or 2 of the Company Act.
(6) If a majority of the company's director seats or voting shares and those of any other company are controlled by the same person:nota director, supervisor, or employee of that other company.
(7) If the chairperson, General Manager, or person holding an equivalent position of the company and a person in any of those positions at	2
Independent Director Hou Ming-Li	Qualified with the requirement of at least 5 years work experience, used to be Deputy Manager of the Audit Department of Deloitte Touche Tohmatsu Limited, and is currently partner accountant of Sun Rise CPAS' Firm DFK Inernaitonal, and not been a person of any conditions defined in Article 30 of the Company Act.		None

Note 1: Professional qualifications and experiences: specify the professional qualifications and experiences of individual directors and supervisors; for these Audit Committee members with accounting or finance expertise, their accounting and finance background with work experiences shall be specified, and explain if any of the conditions indicated under Article 30 of the Company Act applies to them.

Note 2: For the independent directors, their conformity of independence shall be specified, including but not limited to: themselves, spouses, relatives within the second degree of kinship, are employees, directors or supervisors of the Company or any of its affiliates; the shares of the Company and the shareholding weights held by themselves, spouses, relatives within the second degree of kinship (or under others' names); if they are employees, directors or supervisors of the companies having certain relationships with the Company (please refer to Subparagraph 5-8, Paragraph 1, Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies); and in the past 2 years, the compensation amount received by providing commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company.

2. Diversity and Independence of the Board of Directors:

(1) Diversity of the Board:

Based on the diversification policy, strengthening corporate governance, and promoting the development of the composition and structure of the Board of Directors, the nomination of Director candidates is based on a candidate nomination system in accordance with the Company's Articles of Incorporation. The candidates' academic (experience) qualifications, professional background, integrity or related professional qualifications are evaluated and approved by the Board of Directors before being submitted to the shareholders' meeting for election. Other than the directors concurrently serving as the Company's managers not exceeding one third of the total directors, the composition of the board of directors shall be determined by taking diversity into consideration and formulating an appropriate policy on diversity based on the company's business operations, operation type, and development needs, which includes, but is not limited to the following:

i. Basic requirements and values: nationality, gender and age.
ii. Industry and professional experience.
iii. Professional knowledge and skills: ability to make operational judgments, ability to perform accounting and financial analysis, ability to conduct management administration, ability to conduct crisis management, knowledge of the industry, an international market perspective, ability to lead, and ability to make policy decisions

Listed Companies with Less Than One-Third Female Directors: Explanation and Measures for Enhancing Gender Diversity of Directors

The board of directors of our company comprises 10 members, of whom 2 are female, representing 20% of the total and not reaching the one-third threshold. As our company belongs to a traditional industry that has long been male-dominated, it has been challenging to find talent familiar with the plastics industry. Moreover, the proportion of female senior talents is relatively low. However, during the future board re-election, we will prioritize diversity in gender considerations to align with governance trends and achieve the company's diversity goals.

The Implementation of the Board's diversity:

Diversified core	Basic composition				Professional background		Professional knowledge and skills
	Nationality	Gender	Age	Term of Office of the independent director	Accounting & Law	Ability to make operation	Ability to perform accounting & financial analysis	Ability to conduct crisis management
1	Female	Male	18	1989	1	1	1	1
2	Female	Male	18	1989	2	1	1	1
3	Female	Male	18	1989	3	1	1	1

Name					0-3	3-6	6-9
Chairman Tan, Kin-Men	Taiwan (R.O.C.)	M				V					V	V	V	V	V
Director Wang Hai-Lun		F					V				V	V	V	V	V
Director Hung, Yung-Tsung		M				V					V	V	V	V	V
Director Chu Tsung-Pin		M				V					V	V	V	V	V
Director Peter Chen		M				V					V	V	V	V	V
Director Hsieh Tzu-Yun		M				V					V	V	V	V	V
Independent Director Chang Yi-Yun		F			V			V			V	V	V	V	V
Independent Director Hou Ming-Li		M			V		V				V	V	V	V	V
Independent Director Hsu, Tsung-Chih		M	V						V		V	V	V	V	V	V
Independent Director Chien Hsueh-Li		M		V						V	V	V	V	V	V		V

The current Board of Directors of the Company consists of 10 Directors, and the specific management objectives of the Board of Directors' diversity policy and the achievement of these objectives are as follows:

Management objectives	Achievement
Independent Director seats more than one-third of the Director seats	Achived
The directors concurrently serving as the Company’s managers not exceeding one third of the total directors	Achived
Not having a marital relationship, or a relative within the second degree of kinship to any other director of the Company	Achived
All director continues to develop professional knowledge and skills	Achived

(2) Board of Directors Independence :

The company currently has 10 members of the Board of Directors, including 4 Independent Directors (accounting for $40\%$ of all Directors). As of the end of 2025, all Independent Directors have complied with the Securities and Futures Bureau, Financial Supervisory Commission's regulations on Independent Directors, and there are no Paragraphs 3 and 4 stipulated in Article 26-3 of the Securities Exchange Act between each Director and Independent Director. The Board of Directors of the company is independent (please refer to page 6 of this annual report - Disclosure of Directors' Professional Qualifications and Independence of the Independent Directors), each Director's education, gender and work experience (please refer to pages 3 to 4 of this annual report - Director's information).

Information on the Management Team

April 6, 2026

Information on the Management Team

Title	Nationality	Name	Gender	Date Effective	Shareholding		Spouse & Minor Shareholdin		Shareholding by Nominee Arrangement		Experience (Education)	Other Position	Managers who are Spouses or Within Two Degrees of Kinship			Remark
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
General Manager	Taiwan (R.O.C.)	TAN, KIN-MEN	M	06.30.1997	4,695,202	2.07	-	-	-	-	MA in Economics, Meiji University	None	None	None	None	Note 3
Financial Executive	Taiwan (R.O.C.)	Cheng, Yu-Feng	M	01.01.2024	50	-	-	-	-	-	Master of Business, Soochow Univ.	Note 1	None	None	None
Director of Corporate Governance	Taiwan (R.O.C)	Chiu, Chun-Fu	M	08.11.2022	-	-	-	-	-	-	Dept. of Accounting, Naiotnal Chung Hsing University	Note 2

Note 1: A. President of Chang-Hsin-Hsin-Yeh Co., Ltd. (legal representative of Ocean Plastics Co., Ltd.)
B. Director of Ocean Plastics (Huizhou) Co., Ltd (legal representative of SAGE HOLDINGS).
C. President of Shen Yang Development Co., Ltd. (legal representative of Shen Yang Development Co., Ltd.).
Note 2: A. President of Hung Da Investment Co., Ltd. (legal representative of Ocean Plastics Co., Ltd.)
B. President of FERMAT ENTERPRISES (legal representative of Ocean Plastic Co., Ltd.).
C. President of OPC HOLDINGS(legal representative of OCEAN GROUP).
Note3: Where the General Manager or an individual in an equivalent position (the chief executive officer) and the Chairman are the same person, spouses, or relatives within the first degree of kinship, relevant information regarding the reason, reasonableness, necessity, and corresponding measures (such as increasing the number of independent director seats and ensuring that more than half of the directors do not concurrently serve as employees or managers) shall be disclosed.
The Company has a simple organizational structure. Having the Chairman also serve as the General Manager helps to improve operational efficiency and strengthen the execution of decision-making, allowing for direct supervision of the operations of various departments and close communication with all directors. The Chairman and General Manager possesses extensive industry experience, and the Company's operations have grown steadily during his/her tenure. It remains necessary to leverage his/her expertise and experience to expand the scale of operations and market share. In response to the issue of the concurrent positions, the Company has implemented the following specific measures:
A. The amendment to the articles of association to set up four Independent Directors was approved by the Board of Directors on March 26, 2021 and completed by the shareholders' meeting election on July 27, 2021.
B. The four existing independent directors are specialized in the fields of laws, finance, accounting, internal auditing and constructions respectively, and can effectively perform their supervisory functions.
C. Arranging for directors to attend professional director courses of external organizations such as the Securities and Futures Commission to enhance the operational effectiveness of the Board of Directors.
D. No more than half of the current directors are also employees or managers.

Remuneration of Directors, Supervisors, General Manager, and Deputy General Manager:

(1-1) Remuneration of Directors (by way of disclosure of names at individual grade levels)
(1-2) Remuneration of supervisors: Not applicable

Title	Name	Remuneration	Ratio of Total Remuneration (A+B+C+D) to Net Income (%)	Relevant Remuneration Received by Directors Who are Also Employees	Ratio of Total Compensation (A+B+C+D+E+F+G) to Net Income (%)	Compensation Paid to Directors from an Invested Company Other than the Company's Subsidiary
Base Compensation(A)	Severance Pay (B)	Bonus to Directors(C)	Allowances (D)	Salary, Bonuses, and Allowances (E)	Severance Pay (F)	Profit Sharing- Employee Bonus (G)
The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company
cash	stock	cash	stock
Director	TAN, KIN-MEN	144	144	0	0	854
Hsuan Yang Investment Co., Ltd.	144	144	0	0	285	285
WANT WANT Co., Ltd.	144	144	0	0	285	285
Li Hsiang Industrial Co., Ltd.	144	144	0	0	285	285
Peter Chen	144	144	0	0	285	285
Hsieh Tzu-Yun	144	144	0	0	285	285
Chien, Hsueh-Li	304	304	0	0	0	0
Hou Ming-Li	424	424	0	0	0	0
Hsu, Tsung-Chih	424	424	0	0	0	0
Chang Yi-Yun	424	424	0	0	0	0

(1-3) Remuneration of the general manager and deputy general manager (names and remuneration disclosed separately)

Unit: NT$1,000

Title	Name	Salary (A)		Severance Pay (B)		Bonuses, and Allowances (C)		Profit Sharing- Employee Bonus (D)				Ratio of total compensation (A+B+C+D) to net income (%)		Compensation paid to the General Manager and Deputy General Manager from an Invested Company Other Than the Company's Subsidiary
		The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company		All companies in the consolidated financial statements		The company	All companies in the consolidated financial statements
								cash	stock	cash	stock
President	TAN, KIN-MEN	3,814	3,814	0	0	635	635	0	0	0	0	4,449 -1.61%	4,449 -1.61%	None

(1-4) Remuneration to the Five Highest Remunerated Management Personnel of a TWSE or TPEx listed Company (Individual Disclosure of Names and Remuneration Items)

Unit: NT$1,000

Title	Name	Salary (A)		Severance Pay (B)		Bonuses, and Allowances (C)		Profit Sharing- Employee Bonus (D)				Ratio of total compensation (A+B+C+D) to net income (%)		Compensation paid to the General Manager and Deputy General Manager from an Invested Company Other Than the Company's Subsidiary
		The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company		All companies in the consolidated financial statements		The company	All companies in the consolidated financial statements
								cash	stock	cash	stock
President	Tan, Kin-Men	3,814	3,814	-	-	635	635	-	-	-	-	4,449 -1.61%	4,449 -1.61%	None
Director of Factor	Hsu, Ming-Lien	1,521	1,521			306	306	15	-	15	-	1,842 -0.67%	1,842 -0.67%	None
Senior Manager	Chen, I-Hsiung	1,597	1,597	-	-	218	218	20	-	20	-	1,835 -0.67%	1,835 -0.67%	None
Senior Manager	Chang, Yu-Hui	1,611	1,611	-	-	200	200	15	-	15	-	1,826 -0.66%	1,826 -0.66%	None
Director of Factory	Tsai, Chi-Tung	1,490	1,490	-	-	247	247	15	-	15	-	1,752 -0.64%	1,752 -0.64%	None

Name of the managers who distributes employee compensation and how it is distributed

Unit: NT$1,000

	Title	Name	Cash	Total	Total to net income after tax (%)
Manager	President	Tan, Kin-Men	31	31	-0.01%
	Financial Executive	Cheng, Yu-Feng
	Director of Corporate Governance	Chiu, Chun-Fu

(1-5) Separate comparison and explanation of Remuneration for Directors, Supervisors, General Manager and Deputy General Manager in the Most Recent Two Fiscal Years and Remuneration Policy for Directors, Supervisors, General Manager and Deputy General Manager:

Title	2024 ratio of total remuneration paid to directors, supervisors, general manager and deputy general manager to net income (%)		2025 ratio of total remuneration paid to directors, supervisors, general manager and deputy general manager to net income (%)
	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements
Director	5.98	5.98	-3.41	-3.41
Presidents and Vice Presidents

(1) The ratio of total remuneration paid by the Company and by all companies included in the consolidated financial statements for the two most recent fiscal years to directors, supervisors, General Managers and Deputy General Managers of the Company, to the net income:

Total remuneration for 2025 accounted for $-3.41\%$ of the net income after tax in the parent-company-only financial report, representing a decline of $9.39\%$ compared to $5.98\%$ in 2024 (Year 113). The Company recorded a net loss after tax for 2025 due to external environmental factors; consequently, the percentage showed negative growth.

(2) The policies, standards, and portfolios for the payment of remuneration, the procedures for determining remuneration, and the correlation with business performance:

The remuneration of the Company's directors includes remuneration, director compensation, and business execution expenses, which is set forth in Article 17 of the Company's Articles of Incorporation. Directors may be remunerated in accordance with the usual industry practice, and the board of directors is authorized to set such remuneration. Independent directors may receive fixed remuneration without participating in the distribution of directors' compensation. The directors shall be paid carriage fees as determined by the board of directors' meeting and shall be paid regardless of the Company's profit or loss. In accordance with Article 22 of the Company's Articles of Incorporation, not less than $1\%$ of the Company's annual profit shall be allocated to employee compensation and not more than $2\%$ to director compensation.

When an independent director serves as a member of the Audit Committee or the Compensation Committee, he or she shall receive remuneration for attending the meetings in person.

Remuneration of the general manager and deputy general manager includes salary, bonus, and profit sharing- employee bonus etc.; the salary and bonus are determined based on the degree of participation in the company's operations and the value of contributions. The profit sharing- employee bonus is determined by the Board of Directors in accordance with the Company's Articles of Incorporation and reported to the shareholders' meeting. profit sharing- employee bonus is paid in accordance with the "Employee Bonus Payment Method" and is not paid to the Director who is also a manager. The distribution method is based on the ranking, performance appraisal and seniority.

The company pays directors and managers remuneration, in addition to considering the company's future operational development and operational risks, it has also comprehensively considered the payment method of the salary and compensation and the company's future risk matters, and at the same time evaluates the positive correlation with its operating performance, in order to seek balance between sustainable operation and risk control.

Implementation of Corporate Governance:
(1) Board of Directors:

(1) Board of Directors

The most recent annual meeting of the Board of Directors was held five times (A) and the attendance of directors was as follows:

Title	Name	No. of meetings attended in person (B)	By Proxy	In-person attendance rate (%) (B/A)	Remarks
President	TAN,KIN-MEN	5	0	100%	None
Director	Hsuan Yang Investment Co. Ltd. (Representative: Wang Hai-Lun)	5	0	100%	None
Director	Want Want Co., Ltd.(Representative:Hung, Yung-Tsung)	5	0	100%	None
Director	Li Hsiang Industrial Co., Ltd. (representative: Chu Tsung-Pin)	5	0	100%	None
Director	Peter Chen	4	0	80%	None
Director	Hsieh, Tzu-Yun	5	0	100%	None
Independent Director	Chang, Yi-Yun	5	0	100%	None
Independent Director	Hou, Ming-Li	5	0	100%	None
Independent Director	Hsu, Tsung-Chih	5	0	100%	New director, re-elected on May 31, 2025
Independent Director	Chien, Hsueh-Li	3	0	60%	None
Other mentionable items:
1. The Board of Directors shall state the date and time of the meeting, the content of the motion, the opinions of all independent directors and the Company's handling of the opinions of the independent directors if any of the following circumstances apply to the operation of the Board of Directors: (1) Any matter under Article 14-3 of the Securities and Exchange Act.: The Company's Audit Committee is established by four independent directors, and the provisions of Article 14-3 are not applicable. The matters listed in Article 14-5 of the Securities and Exchange Act are referred to the Audit Committee for discussion, please refer to "(2) Operation of the Audit Committee". (2) In addition to the matters referred to above, any dissenting or qualified opinion of an independent directory that is on record or stated in writing with respect to any board resolution.: None. 2. The status of implementation of recusals of directors with respect to any motions with which they may have a conflict of interest: No 3. For a TWSE or TPEx listed company, disclose information including the evaluation cycle and period(s) of the board of directors' self-evaluations (or peer evaluations) and the evaluation method and content.: Board of Directors' Evaluation of Implementation
Evaluation Periodicity (Note 1)	Evaluation duration (Note 2)	Evaluation Scope (Note 3)	Evaluation manner (Note 4)	Evaluation Content (Note 5)
Performed once per year	01/01/2025 - 12/31/2025	Board of Directors	Internal self-evaluation of Board of Directors	1. The degree of participation in the company's operation 2. Quality of Board of Directors' decisions 3. Composition and Structure of the Board of Directors 4. Election of Directors and Continuing Education 5. Internal control
		Individual Board Members	Director Self-evaluation	1. Mastery of company goals & tasks 2. Directors' Responsibilities Awareness 3. The degree of participation in the company's operation

| | | | | 4. Internal relationship management and communication
5. Professional and Continuing Education of Directors
6. Internal control |
| --- | --- | --- | --- | --- |
| | | Functional Committees | Audit Committee Self-evaluation | 1. The degree of participation in the company's operation
2. Functional committee responsibility recognition
3. Functional committee decision quality
4. Functional Committee Composition and Selection of Members
5. Internal control |
| | | | Remuneration Committee's Member Self-evaluation | 1. The degree of participation in the company's operation
2. Functional committee responsibility recognition
3. Functional committee decision quality
4. Functional Committee Composition and Selection of Members |

Evaluation grades: 1 Very poor, 2 Poor, 3 Average, 4 Good, 5 Very good.

Note 1: This refers to the implementation cycle of Board of Directors evaluation, for example, once a year.

Note 2: This refers to the period covered by Board of Directors evaluation, for example, the performance evaluation of Board of Directors from January 1, 2019 to December 31, 2019.

Note 3: Evaluation Scope includes the performance evaluation of Board of Directors, of individual board members, and of functional committee respectively.

Note 4: Evaluation Method includes internal self-evaluation of Board of Directors, peer evaluation, appointment of external professional organizations, experts or other appropriate means to conduct performance evaluation, peer evaluation, appointment of external professional organizations, experts or other appropriate means to conduct performance evaluation.

Note 5: The Evaluation Content includes at least the following items according to the Evaluation Scope:

(1) Performance evaluation of Board of Directors: includes at least the degree of participation in the company's operation, quality of board of directors' decisions, composition and structure of the board of directors, election of directors and continuing education, and internal control, etc.

(2) Performance evaluation of Individual Board Members: includes at least mastery of company goals and tasks, directors' responsibilities awareness, the degree of participation in the company's operation, internal relationship management and communication, professional and continuing education of directors, and internal control, etc.

(3) Performance evaluation of Functional Committee: the degree of participation in the company's operation, functional committee responsibility recognition, functional committee decision quality, functional committee composition and selection of members, and internal control, etc.

An evaluation of targets for strengthening the functions of the board of directors during the current and immediately preceding fiscal years (e.g. the establishment of an audit committee, the promotion of information transparency, etc.), and measures taken toward achievement thereof:

(1) Cooperate with laws and regulations: On March 8, 2024, the Board of Directors approved amendments to the Company's "Regulations Governing Procedure for Board of Directors Meetings" and "Audit Committee Charter" to complete the meeting procedures of the Board of Directors and the Audit Committee.

(2) Conduct annual performance evaluations for the board, board members and functional committees to strengthen the board's functions.

(3) The Company announces important resolutions of each board meeting on the Company's website and takes out liability insurance for directors and managers to enhance the transparency of the Company's operational information and to protect the interests of shareholders.

Note 1: If the director or supervisor is a legal entity, the name of the legal shareholder and the name of the representative should be disclosed.

Note 2: (1) The actual attendance rate (%) is calculated based on the number of meetings of the Board of Directors and the actual number of meetings attended during the term of office of the director.

(2) If a director or supervisor is re-elected before the end of the year, both the new and old director or supervisor should be listed and the date of re-election should be indicated in the Remarks column. The actual attendance rate (%) is calculated based on the number of meetings of the Board of Directors and the actual number of attendance during the term of office.

(2) Audit Committee:

Total of 4 (A) Audit Committee meetings were held in 2025. The attendance of the independent directors was as follows:

Title	Name	No. of meetings attended in person (B)	By Proxy	In-person attendance rate (%) (B/A)	Remarks
Independent Director	Hou Ming-Li	4	0	100%	None
Independent Director	Chang Yi-Yun	4	0	100%	None
Independent Director	Hsu, Tsung-Chih	4	0	100%	None
Independent Director	Chien, Hsueh-Li	2	0	50%	None
The Audit Committee exercises the duties and responsibilities stipulated by the Securities and Exchange Act, the Company Act, and other laws and regulations, and takes the responsibility for carrying out the fair representation of the Company's financial statements, appointment or dismissal of attesting CPAs and evaluation of CPAs' independence and performance, effective implementation of the Company's internal control, the Company's compliance with relevant laws and regulations, control and management of existing or latent risks, etc.
Other mentionable items:
1. If the Audit Committee operates under any of the following circumstances, it shall state the date and period of the Audit Committee meeting, the content of the motion, the content of the objections, reservations or significant recommendations of the independent directors, the results of the Audit Committee resolution and the Company's handling of the Audit Committee's opinion.
(1) The matters listed in Article 14-5 of the Securities and Exchange Act.: Please refer to Note 1.
(2) Other than the foregoing, any item not passed by the Audit Committee but approved by at least two-thirds of all the directors: None
2. If there are independent directors' avoidance of motions in conflict of interest, the directors' names, contents of motion, causes for avoidance and voting should be specified: There were no proposals involving conflicts of interest that required directors to recuse themselves during 2025.
3. Communications between the independent directors, the Company's chief internal auditor and CPAs (e.g. the items, methods and results of audits of corporate finance or operations, etc.):
(1) Following the submission of the internal audit reports and follow-up reports for approval, the Company's Chief Internal Auditor delivers these reports to each Audit Committee member via email by the end of the following month. The Chief Internal Auditor also reports during Audit Committee meetings, maintaining effective communication between both parties. Furthermore, the Chief Internal Auditor maintains smooth communication channels with the external certified public accountants (CPAs). In accordance with the regulations of the competent authority, the Company has completed the filing of the audit plan for the following year, the implementation status of the audit plan for the previous year, and the improvement of internal control deficiencies and irregularities.
(2) The Company invites certified public accountants (CPAs) to attend Audit Committee meetings to report on and communicate with independent directors regarding the review or audit results of quarterly and annual financial reports, Key Audit Matters (KAMs), explanations of non-assurance services, and the impact of other newly issued laws and regulations on the Company.

Note: * If an independent director vacates his or her position before the end of the year, the date of departure should be indicated in the Remarks column. The actual attendance rate (%) is calculated based on the number of Audit Committee meetings and the actual attendance during their employment.
* If there is a re-election of independent directors before the year-end, both new and existing independent directors should be listed, and the date of re-election should be indicated in the Remarks column. The actual attendance rate (%) is calculated based on the number of meetings of the Audit Committee and the actual attendance of the Audit Committee during the term of employment.

Note 1: The Audit Committee held four meetings in 2025 to consider, among other things, the matters set forth in Article 14-5 of the Securities and Exchange Act.:

Adoption or amendment of an internal control system pursuant to Article 14-1.
Assessment of the effectiveness of the internal control system.
Adoption or amendment, pursuant to Article 36-1, of handling procedures for financial or operational actions of material significance, such as acquisition or disposal of assets, derivatives trading, extension of monetary loans to others, or endorsements or guarantees for others.
A matter bearing on the personal interest of a director.
A material asset or derivatives transaction.
A material monetary loan, endorsement, or provision of guarantee.
The offering, issuance, or private placement of any equity-type securities.
The hiring or dismissal of an attesting CPA, or the compensation given thereto.
The appointment or discharge of a financial, accounting, or internal auditing officer.

Annual financial reports and second quarter financial reports that must be audited and attested by a CPA, which are signed or sealed by the chairperson, managerial officer, and accounting officer.
Any other material matter so required by the company or the Competent Authority.

The implementation in 2025:

The date and period of the Audit Committee meeting	The content of the motion	The content of the objections, reservations or significant recommendations of the independent directors	The results of the Audit Committee resolution	The Company's handling of the Audit Committee's opinion
The 3^{rd} meeting of 4^{th} Committee on March 3, 2025	1. For preparation of 2024 financial report and consolidated financial report for review and approval
2. For preparation of table of 2024 profit appropriation and business report, for review and approval
3. The Company's FY2024 "Statement of Internal Control" in compliance with the "Regulations Governing Establishment of Internal Control Systems by Public Companies" issued by the Financial Supervisory Commission for review and approval.
4. 4. Proposal for the appointment of Certified Public Accountants (CPAs) Yu, Sheng-Ho and Lo, Jui-Chih of "KPMG Taiwan" as the external auditors for the 2025 (Year 114) financial reports and tax filing certification. Submitted for discussion.
5. Proposal for the change of external auditors for Chang-Hsin-Hsin-Yeh Co., Ltd., a 100%-owned subsidiary of the Company. Submitted for discussion.
6. Proposal for the change of accounting firms for the Company's offshore subsidiaries. Submitted for discussion.
7. Proposal to add new items to the Company's "General Principles of Pre-Approval Policy for Non-Assurance Services." Submitted for discussion.	None	All the members present, the motion was passed without objection	The proposal was submitted to the 5^{th} meeting of the 22^{nd} Board of Directors for deliberation and was unanimously approved by all attending directors.
The 4^{th} meeting of 4^{th} Committee on May 9, 2025	1. For prepare the Company's 1st Quarter Report on Consolidated Financial Statements for Fiscal Year 2025, for review and approval.	None		The proposal was submitted to the 6^{th} ting of the 22^{nd} Board of Directors for deliberation and was unanimously approved by all attending directors.
The 5^{th} meeting of 4^{th} Committee on August 6, 2025	1. The Company's 2nd Quarter Report on Consolidated Financial Statements for Fiscal Year 2025 for review and approval.
2. Proposal to amend the Company's "Measures for the Distribution of Employee Bonuses" in alignment with the amendments to Article 22 of the Articles of Incorporation approved by the Shareholders' Meeting, specifically to expand the scope of junior-level employees. Submitted for discussion.	The comparison table of amended articles shall clearly mark the amendments and provide explanations for the revisions.		The proposal was submitted to the 7^{th} meeting of the 22^{nd} Board of Directors for deliberation and was unanimously approved by all attending directors.
The 6^{th} meeting of 4^{th} Committee on November 7, 2025	1. Regarding to the company’s 2026 audit plan, for review and approval.
2. The Company's 3rd Quarter Report on Consolidated Financial Statements for Fiscal Year 2025 for review and approval.
3. Proposal to amend certain text in the Company's "Measures for the Distribution of Employee Bonuses." Submitted for discussion.	None		The proposal was submitted to the 8th meaging of the 22^{nd} Board of Directors for deliberation and was unanimously approved by all attending directors.

(3) Corporate Governance Implementation Status and Deviations from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies":

Evaluation Item	Implementation Status (Note 1)			Deviations from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Abstract Illustration
1. Does the company establish and disclose the Corporate Governance Best-Practice Principles based on "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies"?	V		The Company has established the "Corporate Governance Best-Practice Principles", which was approved by the Board of Directors on December 21, 2021, and in accordance with the "Corporate Governance Best-Practice Principles", the Company has strengthened its internal control system and enhanced information transparency in order to protect the interests of shareholders and stakeholders.	None
2. Shareholding structure & shareholders' rights
(1) Does the company establish an internal operating procedure to deal with shareholders' suggestions, doubts, disputes and litigations, and implement based on the procedure?	V		(1) The Company has a spokesperson and a deputy spokesperson to deal with issues such as shareholder proposals or disputes; Investors can ask questions or make suggestions from the email address provided on the company's website.	None
(2) Does the company possess the list of its major shareholders as well as the ultimate owners of those shares?	V		(2) The Company's stock agency provides a register of shareholders, keeps up to date with a list of substantial shareholders and ultimate controllers of substantial shareholders and interacts well with the substantial shareholders.	None
(3) Does the company establish and execute the risk management and firewall system within its conglomerate structure?	V		(3) "The Subsidiary Management Regulations" have been established to implement a mechanism for the supervision of subsidiaries.	None
(4) Does the company establish internal rules against insiders trading with undisclosed information?	V		(4) The Company has in place the "Procedures for Handling Material Inside Information," and the "Procedures for Ethical Management and Guidelines for Conduct", which prohibit insiders from trading in securities using information not publicly available in the market. When new directors and managers assume office, the Company also provides information on the relevant regulations and reminds them of the precautions to be taken when insider trading is involved.	None
3. Composition and Responsibilities of the Board of Directors
(1) Does the Board develop and implement adversified policy for the composition of its members?	V		(1) In the nomination and selection of board members, the academic qualifications and experience of each member have been assessed and the "Procedures for Election of Directors and Supervisors" and the "Corporate Governance Best Practice Principles" have been complied with to ensure that pluralism, independence and stakeholder views are taken into consideration. The current directors have professional backgrounds, skills and industry experience. Among the board members, there are 4 independent directors, including 2 female directors, whose professional fields include law, finance, corporate governance and construction, etc. They provide advice on the operation and future development of the Company. Please refer to pages 7-8 for details of the diversity of the Board of Directors.	None
(2) Does the company voluntarily establish other functional committees in addition to the Remuneration Committee and the Audit Committee?	V		(2) The Company has set up a remuneration committee and an audit committee as required by law and Other functional committees will be established in the future depending on actual operational needs.	None
(3) Does the company establish a standard to measure the performance of the Board, and implement it annually? The results of the performance evaluation will be reported to the board of directors and used as reference for individual director's salary compensation and	V		(3) The "Self-Evaluation or Peer Evaluation of the Board of Directors" was approved by the Board of Directors on December 22, 2020 and will be carried out regularly every year. The result of Self-Evaluation or Peer Evaluation of 2025 will be submitted to Board of Directors on March 10, 2026.	None
4. The Board of Directors' performance evaluation will be reported to the board of directors and the Board of Directors' performance evaluation will be submitted to Board of Directors on March 10, 2026.

Evaluation Item	Implementation Status (Note 1)			Deviations from “the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
nomination for reappointment?
(4) Does the company regularly evaluate the independence of CPAs?	V		(4) The Company evaluates the independence and suitability of the external certified public accountants (CPAs) annually. In addition to requiring a "Declaration of Independence" and "Audit Quality Indicators (AQIs)" from the CPAs, the evaluation is conducted based on the standards specified in Note 2. The assessment covers years of audit service, audit fees, the nature of non-audit services, legal litigations, and whether any professional, kinship, or business interest relationships exist with the Company's management to ensure they are non-interested parties. The most recent evaluation results were discussed and approved by the Audit Committee on March 10, 2026 (Year 115), and subsequently reported to and resolved by the Board of Directors on March 10, 2026, confirming the independence and suitability of the CPAs.	None
4. Does the listed company have a suitable and appropriate number of corporate governance personnel and designate a corporate governance officer to be responsible for corporate governance-related matters (including but not limited to providing directors and supervisors with information necessary for the execution of their business, assisting directors and supervisors in complying with laws and regulations, conducting board and hareholders' meeting related matters in accordance with the law, and preparing minutes of board and shareholders' meetings, etc.)?	V		On August 11, 2022, the Board of Directors approved to change of the corporate governance officer into General Manager Office Mr. Chiu, Chun-Fu, General Manager Office. The main responsibilities of the corporate governance officer are to handle the board of directors and the shareholders meeting in accordance with the law, prepare the board of directors and the shareholders meeting minutes, assist the directors in the appointment and continuous education, provide the directors with the information required for the execution of the business, assist the directors to comply with laws and regulations, etc.. The corporate governance officer's qualification is based on the requirement, and completed the professional education/training in 2025. (see page 23)	None
5. Does the company establish a communication channel and build a designated section on its website for stakeholders, as well as handle all the issues they care for in terms of corporate social responsibilities?	V		A stakeholder section has been set up on the website. Stakeholders may contact the relevant departments and units of the Company at any time when necessary, and the Company will assign dedicated staff to handle the matter as appropriate.	None
6. Does the company appoint a professional shareholder service agency to deal with shareholder affairs?	V		The Company has appointed KGI Securities Co to act for it in relation to shareholder affairs.	None
7. Information Disclosure
(1) Does the company have a corporate website to disclose both financial standings and the status of corporate governance?	V		(1) A website has been set up and company information is regularly disclosed. https://www.opc.com.tw/	None
(2) Does the company have other information disclosure channels (e.g. building an English website, appointing designated people to handle information collection and disclosure, creating a spokesman system, webcasting investor conferences)?	V		(2) The Company has a spokesperson and a deputy spokesperson in place and discloses relevant information on the Market Observation Post System on a regular and occasional basis.	None
8. Is the company responsible for the implementation of the international trade union (IUA)?	V		The Company is responsible for the implementation of the international trade union (IUA) in the context of international trade union issues.	None
9. Is the company responsible for the implementation of the international trade union (IUA) in the context of international trade union issues?	V		The Company is responsible for the implementation of the international trade union (IUA) in the context of international trade union issues in the context of international trade union issues.	None

| Evaluation Item | Implementation Status (Note 1) | | | Deviations from
“the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies” and Reasons |
| --- | --- | --- | --- | --- |
| | Yes | No | Abstract Illustration | |
| (3) Does the Company announce and report its annual financial statements within two months after the end of the fiscal year, and announce and report its first, second and third quarterly financial statements and its operations for each month well in advance of the prescribed deadline? | | V | (3) The Company’s financial reports for the first, second and third quarters, as well as the announcement and reporting of operations for each month, were made within the deadlines set by the competent authorities, except for the announcement and reporting of annual financial reports within two months after the year-end. | Communicate with certified public accountants with the goal of early announcement and reporting of financial reports. |
| 8. Is there any other important information to facilitate a better understanding of the company’s corporate governance practices (e.g., including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors’ and supervisors’ training records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies, and purchasing insurance for directors and supervisors)? | V | | (1) Employee rights, employee care: The Company is committed to providing a healthy and safe working environment in accordance with the law, and has followed the internal management rules on appointment, promotion, rewards and punishments, benefits, salaries, training and retirement to ensure fair opportunities and conduct guidelines. In addition to the establishment of the Employee Welfare Committee, the Sexual Harassment Complaint Handling Committee, the Award and Penalty Committee, and the Labor Pension Committee, the Company also holds labor-management meetings to protect the rights of employees, prevent accidents and injuries, and seek the welfare of employees.
(2) Investor relations: The Company has set up a spokesperson system to provide a point of contact with shareholders and corporate investment institutions.
(3) Supplier relations: The Company maintains equal and good relations with its suppliers.
(4) Stakeholder rights: The company maintains smooth communication channels with stakeholders, including correspondent banks, other creditors, shareholders, employees, customers, consumers, supplier communities, etc.
(5) Directors’ and independent directors’ continuing education: Please refer to page 23 of the annual report (Schedule 1).
(6) Implementation of risk management policies and risk measurement standards: Major operating policies, investment proposals, endorsement and guarantees, and capital loans are evaluated by the responsible departments and implemented in accordance with the resolutions of the board of directors, while the audit office prepares annual audit plans and conducts audits based on the results of the risk assessment.
(7) Implementation of customer policy: Through the implementation of ISO management systems, the Company ensures product quality and reduces energy consumption. In the event of quality disputes raised by customers, we follow the customer complaint handling procedures to address grievances and conduct thorough reviews for improvement. Furthermore, we conduct annual customer satisfaction surveys to understand their evaluations and suggestions regarding the Company’s products.
(8) The articles of incorporation provide for the taking out of liability insurance for directors and essential officers and the Company has purchased directors’ and | None |

Note 2: Standards for evaluating the CPA's independence

No.	Evaluation indicators	Evaluation Results
1.	Up to the latest certification practice, there's no such circumstance with working for the company for seven years in a row	✓
2.	No major financial interested relationship with the client.	✓
3.	Avoiding any improper relationship with the client.	✓
4.	The accountant should supervise their assistants to strictly comply with honesty, justice and Independence.	✓
5.	The accountant is prohibited from auditing certification for the company's financial report where he/she has served in within the previous two years.	✓
6.	The accountant's identification is forbidden to be infringed by another individual.	✓
7.	The accountant does not hold any shares in the company or in its subsidiaries.	✓
8.	The accountant does not owe any debt to the company or its subsidiaries.	✓
9.	The accountant is not in any joint investment or benefit-sharing relationship with the company or its subsidiaries	✓
10.	The accountant is not employed and paid regularly by the company or its subsidiaries	✓
11.	The accountant does not interfere with any management function towards decision-making in the company or its subsidiaries	✓
12.	The accountant does not run any business which will probably deprive him/her of audit independence	✓

13.	Does not have a spousal relationship or a kinship relationship within the second degree of consanguinity with any member of the Company’s management.	✓
14.	The accountant does not receive any commission which is occupationalp-related	✓
15.	Up to now, the accountant hasn't been punished for violating any audit independence principle	✓

(Schedule I)
Education/training for the Company's directors and independent directors in 2025: The term of office of the current directors started on May 31, 2024 and will end on May 30, 2027.

Title	Name	Date	Organizer	Course Name	Hours	Whether the continuing education complies with relevant regulations
Director	Tan, Kin-Men	08/23/2024	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3	Yes
		10/17/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
Director	Peter Chen	08/23/2024	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3	Yes
		10/17/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
Director	Hsieh, Tzu-Yun	08/23/2024	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3	Yes
		10/17/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
Director	Chu, Tsung Pin	08/23/2024	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3	Yes
		10/17/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
Director	Hung, Yung-Tsun	04/26/2024	TABF	Corporate Governance Forum	3	Yes
		08/23/2024	ITRI	Towards Net-Zero Emissions	2	Yes
		09/30/2024	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3	Yes
		10/04/2024	TWSE	2025 Cathay Sustainable Finance and Climate Change Summit Forum	3	Yes
		10/17/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
Director	Wanwg, Hai-Lun	08/23/2024	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3	Yes
		10/17/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
Independent Director	Hou, Ming-Li	10/29/2024	NFCPAA	The Starting Point of Sustainability Data: GHG Inventory and Data Quality	6	Yes
Independent Director	Chang, Yi-Yun	08/23/2024	TCGA	Strategic Analysis of Sustainable Enterprises-- A Case Study of Renewable Energy	3	Yes
			KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
		09/03/2024	SFI	Impact of Recent SFIPC Act Amendments on Director Liability and Practical Responses	3	Yes
Independent Director	Hsu, Tsung-Chih	07/03/2024	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3	Yes
		08/23/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
Independent Director	Chien, Hsueh-Li	09/20/2024	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3	Yes
		10/17/2024	SFI	2025 Insider Equity Trading Regulatory Compliance Seminar	3	Yes

Education/training for the Company's corporate governance officer in 2025:

Name	Date	Organizer	Course Name	hours	Total hours
Chiu, Chun-Fu	05/16/2025	Taiwan Stock Exchange	2025 Seminar on the Prevention of Insider Trading	3	12
	06/27/2025	KPMG Academy	Ethical Integrity and Prevention of Insider Trading	3
	07/25/2025	Taiwan Stock Exchange	2025 Insider Equity Trading Regulatory Compliance Seminar	3
	09/25/2025	KPMG Academy	Sustainable Governance Practices for Corporate Succession and Transformation	3

(4) Composition, Responsibilities and Operations of the Remuneration Committee:

I. Professional Qualifications and Independence Analysis of Remuneration Committee Members:

December 31, 2025

Criteria Title (note 1)		Professional Qualification and Expereices (Note 2)	Independence Situation (Note 3)	Number of Other Public Companies in Which the Individual is Concurrently Serving as an Remuneration Committee Member
Independent Director	Chien, Hsueh-Li	Refer to page 6, Information of Directors and Supervisors (2): 1. Disclosure of directors’ professional qualifications and independence of the independent directors	Refer to page 8,Information of Directors and Supervisors (2): 1. Disclosure of directors’ professional qualifications and independence of the independent directors	0
Independent Director	Hsu, Tsung-Chih			0
Independent Director	Hou, Ming-Li			0
Independent Director	Chang, Yi-Yun			2

Note1: In the form, please specify the relevant work, seniority, professional qualifications and experience of members of the Remuneration Committee, as well as Independence situation; for Independent Director, please remark referring to Appendix 1 Directors and Supervisors (1) on page 8. As for tile, please enter Independent Director or other (please add a note for convener).
Note2: Professional Qualification and Expereices: Specify the professional qualifications and experiences of individual remuneration committee members.
Note3: Independence situation: Specify that the members of the Remuneration Committee meet the Independence situation, including but not limited to whether relatives within the second degree of kinship of the person's spouse act as directors, supervisors or employees of the company or its affiliated companies; the number and proportion of the company's shares held by relatives within the second degree of kinship (or in the name of others) of the persons's spouse; Whether to act as a Director, supervisor or employee of a company (referring to the provisions set forth in Subparagraphs 5 to 8, Paragraph 1, Article 6 of Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange) that has a specific relationship with the company; the amount of compensation received for providing services such as business, legal, financial accounting and other services to the company or its affiliates in the last two years.

II. The implementation of Remuneration Committee:

A. The company's Remuneration Committee has 4 members.
B. The 6th term of members: From May 31, 2024 to May 30, 2027. The Remuneration Committee held 3 meetings (A) in the most recent year. The qualifications and attendance of the members are as follows:

Title	Name	Attendance in Person (B)	Attendance Rate (%) (B/A) (Note)	Remarks
Convener	Chien, Hsueh-Li	2	67%	None
Member	Hsu, Tsung-Chih	3	100%	None
Member	Hou, Ming-Li	3	100%	None
Member	Chang, Yi-Yun	3	100%	None

Other mentionable items:

If the board of directors declines to adopt or modifies a recommendation of the remuneration committee, it should specify the date of the meeting, session, content of the motion, resolution by the board of directors, and the Company's response to the remuneration committee's opinion (e.g., the remuneration passed by the Board of Directors exceeds the recommendation of the remuneration committee, the circumstances and cause for the difference shall be specified): No such case.
Resolutions of the remuneration committee objected to by members or subject to a qualified opinion and recorded or declared in writing, the date of the meeting, session, content of the motion, all members' opinions and the response to members' opinion should be specified: No such case.

Note : (1) If a member of Remuneration Committee vacates his or her position before the end of the year, the date of departure should be indicated in the Remarks column. The actual attendance rate (%) is calculated based on the number of Audit Committee meetings and the actual attendance during their employment.

(2) If there is a re-election of Remuneration Committee before the year-end, both new and existing independent members should be listed, and the date of re-election should be indicated in the Remarks column. The actual attendance rate (%) is calculated based on the number of meetings of the Remuneration Committee and the actual attendance of the Remuneration Committee during the term of employment.

Remuneration Committee's duties:

The Committee shall exercise the care of a good administrator to faithfully perform the following duties and present its recommendations to the board of directors for discussion.

Establishing and periodically reviewing the performance evaluation, and the policies, systems, standards, and structure for the compensation of the directors, supervisors, and managerial officers.
Periodically evaluating and setting the director's and managerial officer's salary and compensation.

The implementation in 2025:

Remuneration Committee Meeting Date and Term	Proposal Content	Dissenting Opinions, Reserved Opinions, or Major Recommendations of the Remuneration Committee	Resolution Results of the Remuneration Committee	The Company's Response to the Remuneration Committee's Opinions
The 3^{rd} meeting of 6^{th} term
March 7, 2025	1. Proposal for 2024 Director Remuneration and Employee Compensation.
2. Distribution of 2024 Director Remuneration and the portion of Employee Compensation allocated to managers.	None	Approved by all attending members and submitted to the Board of Directors for resolution.	The proposal was submitted to the 5^{th} meeting of the 22nd Board of Directors for deliberation and was unanimously approved by all attending directors.
The 4^{th} meeting of 6^{th} term
August 6, 2025	1. The maximum average salary increase for employees in 2025 is set at 4% of base salary; proposed to adjust managerial salaries accordingly with reference to this rate.	None		The proposal was submitted to the 7^{th} meeting of the 22nd Board of Directors for deliberation and was unanimously approved by all attending directors.
The 5^{th} meeting of 6^{th} term
December 26, 2025	1. Distribution of 2025 year-end bonuses for managers and employees.	None		The proposal was submitted to the 9^{th} meeting of the 22nd Board of Directors for deliberation and was unanimously approved by all attending directors.

(5) Fulfilment of Sustainable Development and Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies":

Promoting items	Implementation Status (Note 1)	Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and Reasons
Yes	No	Abstract Illustration
1. Has the company established a governance structure to promote sustainable development and set up a dedicated (part-time) unit to promote sustainable development, with the Board of Directors authorizing senior management to handle the matter, and the Board of Directors supervising the situation?	V
On November 7, 2025, when the company reported the Compilation Schedule of Sustainability Report to the Board of Directors that major themes had been specified in the questionnaire returned by Stakeholders. At present, management objectives have been formulated for major themes. According to the assessment results of risks and opportunities, each department will develop specific and feasible work objectives for implementation and start writing. The company expects to complete the sustainability report and upload the information before June 2027. At the same time, the sustainability report will also be uploaded to the company's website for directors to read.	None
2. Does the Company conduct risk assessment on environmental, social and corporate governance issues related to its operations in accordance with the principle of materiality and establish relevant risk management policies or strategies? (note 2)	V
The "Sustainable Development Materiality Questionnaire" is provided to external stakeholders and internal senior executives to assess the major ESG issues and to set related management strategies and specific implementation targets to reduce the impact of related risks. The management strategies and implementation goals formulated by the company based on environmental, social and governance issues related to operations:	None
Major Issues	Evaluation content	Management Strategy and Implementation Objectives
Economic	Economic Performance	Management policy: Integrity, pragmatism, stability and innovation. Implementation objectives:
1. Advancing corporate sustainable development and implementing environmental protection, energy conservation, and carbon reduction.
2. Improve the AI automation process to promote the transformation of enterprises.
3. Revitalize corporate assets to improve efficiency.
4. Increasing high value-added products to generate profits, thereby rewarding both shareholders and employees.

Implementation Status (Note 1)
Yes	No	Abstract Illustration
		Economic	Customer Service	Management policy: Adhere to product quality, meet customer needs and provide perfect after-sales service. Implementation objectives: 1. Routinely visit customers every week. 2. Conduct a customer satisfaction survey at least once a year.
		Social	Occupational Safety and Health	Management policy: Continuous improvement and communication/consultation, hazard prevention, and compliance with laws and regulations. Implementation objectives: 1. Improve the operating environment and avoid unsafe and illegal operations. 2. Short-term: (1) Operating standards (2) Management computerization (3) Implementation of audit operations (4) Outsourcing testing and monitoring 3. Mid-term: Meet the requirements of environmental emission standards. 4. Long-term: Zero violation, zero fine, zero pollution, zero disaster, and zero grievance.
		Environmental	Chemical materials and factory safety	Management policy: Comply with the law and prioritize the environment. Implementation objectives: 1. Mid-term: (1)Chemical safety incidents are controlled to less than one incident. (2) No fine imposed. 2. Long term: Zero-leakage, zero-public nuisance and zero-industrial accident
		Environmental	Energy saving & carbon reduction	protection, green, non-toxic, low-carbon materials and industries. Implementation objectives: 1. Short-term: Conduct energy

Promoting items	Implementation Status (Note 1)
	Yes	No	Abstract Illustration
					consumption inventories across all plants to identify hotspots for regulation or equipment upgrades and replacements.
2. Medium-term: Formulate company-wide carbon reduction strategies, programs, and targets.
3. Long-term: Align with the national long-term goal of 2050 Net-Zero Emissions.
			Environmental	Green Investment & Transformation	Management policy: Continue to develop energy-saving, environmental protection, green, non-toxic, low-carbon materials and industries.
Implementation objectives:
1. Short-term: Increase the sales volume of existing green products by 5% annually, with the previous year as the baseline.
2. Medium-term: Accelerate the development of other green materials at a rate of 2 items per year.
3. Long-term: Increase the business layout in green and low-carbon fields.
			Environmental	Water Resource Management	Management Policy:
Cherish water resources; enhance the recovery and reuse of groundwater and reclaimed water while reducing the use of tap water.
Execution Targets:
1. Short-term: 2024–2026
(1) Reduce water consumption per unit of production by 1% annually, using 2019 as the baseline.
(2) Ensure all effluent data from the Taoyuan Plant is superior to discharge standards.
2. Medium-term: 2026–2030
(1) Improve water use efficiency at the Zhongli Plant and implement water

Promoting items	Implementation Status (Note 1)				Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Abstract Illustration
				resource management in compliance with legal regulations.
(2) Continuously enhance and implement water resource management at the Xinwu Plant to exceed legal requirements.
3. Long-term: 2030–2035
Effectively utilize water resources, aiming for each drop of water to be reused more than 5 times.
3. Environmental issues
(1) Whether the company has established appropriate environmental management system according to its industrial characteristics?	V		(1) All of our factories in Taiwan have obtained ISO 14001 certification. A third party will audit our company to ensure that it has fulfilled its social responsibility of continuously improving environmental pollution and protecting the earth's ecology.		None
(2) Does the company advise to endeavor to utilize energy more efficiently and use renewable materials which have a low impact on the environment to improve sustainability of natural resources.	V		(2) The Company is actively implementing the concept of remainder reuse, recycling and energy saving, industrial waste reduction, refuse sorting, paper reduction and paper reuse, and encouraging the use of eco-friendly chopsticks, cups and internal network operations to alleviate the impact on the environment. Each plant is gradually replacing its equipment and using low energy consumption equipment, such as the Taoyuan plant replacing its motors with IE3 high efficiency motors and Automatic Frequency air compressors; the Chungli plant replacing high efficiency inverter air compressor; and the Xinwu plant using LED energy-saving light bulbs and Energy management systems are introduced year by year throughout the plant.		None
(3) Does the company assess the impact of climate change on its current and future operations? What are the potential risks and opportunities, and what are the measures to address climate related issues?	V		(3) The company identified the possible transformation of operations and the risks associated with the entity by referring to the TCFD model and method, and also identified potential opportunities in the changing climate.
Risk Items:
1. Water, electricity and work stoppages caused by extreme weather.
2. Continued increase in raw materials.
3. Carbon emission taxation problems.
4. Energy shortage and disconnection of supply.
5. Industry being stigmatized.
Opportunity Projects:
1. low water consumption and low energy consumption technology.
2. participation in green energy development.
3. development of new green products.
4. energy diversification.
5. Promoting green production			None

Promoting items	Implementation Status (Note 1)	Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and Reasons
Yes	No	Abstract Illustration

1. In line with the government's green energy policy, solar power generation systems with a total capacity of 2,490 kilowatts were built at Xinwu Plant and Taoyuan 3rd Plant.
2. CELLwood medical tape was developed at Xinwu Plant.
3. The Chungli Plant produces PE flexible pipes and Wood-Plastic Composite (WPC) green building materials.
4. Water-based PU synthetic leather was produced at Taoyuan 3rd Plant. Solar power system and power generation situation of Xinwu Plant, Taoyuan Plant and Taoyuan 3rd plant:
Year	Power generation (kwh)	Carbon reduction (mt)
2024	2,821	2,849
2025	2,955	2,985
R&D situation of green building materials—Cellwood:
Year	Production Capacity (mt)	Sales Volume (MT)
2024	108.91	42.96
(4) Does the company calculate GHG emissions, water consumption and total waste weight, and formulate policies for energy conservation, carbon reduction, GHG reduction, water reduction or other waste management for the past two years?	V
Year	Area 1	Area 2
2024	3,155	41,617
2025	4,800	27,745
Management policy and results: 1. Each plant gradually replaced its equipment and used low energy consumption equipment. 2. In line with the " Sustainable Development Roadmap ", the company completed the greenhouse gas inventory and verification schedule. 3. Establish a greenhouse gas inventory team and appoint a consulting company to guide and conduct a comprehensive inventory. 4. Increasing the layout of green and low-carbon enterprise.

Promoting items	Implementation Status (Note 1)	Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and Reasons
Yes	No	Abstract Illustration

• In water resources management:
Water consumption in the last two years (covering all plants in Taiwan)
Year	water intake (million liters)	Discharge (million liters)
2024	448.80	301.34
2025	360.70	215.08
Management policy and results: The Company continues to improve its technology and invest in equipment to recycle 404.53 million liters of water in 2024 and 376.51 million liters of water in 2025. And the temperature controller is used to reduce the starting times of the cooling fan in the cooling tower. The water saving in 2023 and 2024 is 15,000 metric tons and 16,300 metric tons respectively.
• In waste management:
The amount of hazardous waste and non-hazardous waste in the last two years (covering all plants in Taiwan)
Year	Hazardous Industrial Waste (mt)	Non-hazardous Industrial Waste (mt)
2024	23.44	639.59
2025	12.29	724.96
Management policy and results:
1. Adhering to the business attitude of green environmental protection, the waste is divided into general industrial waste and hazardous industrial waste, and according to the "Methods and Facilities Standards for the Storage, Clearance and Disposal of Industrial Waste", this Company entrusted to legal operators to deal with it.
2. Comply with environmental regulations, implement waste reduction at the source, properly classify waste, and implement recycling with high resource reuse rate.
3. Promote waste reduction, and separate some recyclable items such as waste PE film, PE packaging bags, transparent plastic bags, PP plastic ropes, PP woven bags, and PP packing tapes from garbage.

Promoting items	Implementation Status (Note 1)			Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Abstract Illustration
			4. Promote a circular economy, treat waste as resources, extend the life of resources through recycling, reuse and remanufacturing, and reduce dependence on natural resources.
4. Social Responsibilities
(1) Does the Company formulate appropriatenangement policies and procedures in accordance with relevant regulations and international human rights conventions?	V		(1) Abiding by laws and regulations, the Company does not discriminate or pay differently on the basis of race, class, language, thought, religion, political party, place of origin, place of birth, gender, gender orientation, age, marital status, appearance, facial features, disability, horoscope, blood type, or past membership in any labor union; the same applies to the employment of disabled and foreign staff.	None
(2) Does the company formulate and implement reasonable employee benefits (including compensation, vacation, and other benefits), and appropriately reflect operating performance or results in employee compensation?	V		(2) The Company follows the minimum standards set out in the labor laws and regulations and, depending on the operating conditions, establishes measures for performance and employee bonuses, such as business bonuses, management target bonuses, performance bonuses, etc., providing various subsidies, such as education subsidies for employees’ children, scholarships for employees’ children, employees’ on-the-job training subsidies, community subsidies, marriage subsidies, funeral subsidies for family members, maternity subsidies, retirement condolences, medical subsidies for employees and their families, and emergency subsidies. It also has leave regulations in place to achieve a balance between work and family, and a balance between mind and body. In addition, the articles of association also stipulates that if there is profit in the annual final account, no less than 1% shall be appropriated for employee compensation	None
(3) Does the Company provide a safe and healthy working environment, and provide training on safety and health for its employees on a regular basis?	V		(3) In accordance with "Occupational Safety and Health Act," "Labor Health Protection Rules", the company handles health management, occupational disease prevention, and health promotion and other on-site services. At the same time, after the health report is sent to colleagues, doctors will also be arranged to hold health lectures and personal report consultation in the factory. In addition, if the workplace and machinery and equipment may cause health concerns, the unit is required to make appropriate improvements and disposals in accordance with laws and regulations. Among the Company’s factories in Taiwan, Xinwu Plant has obtained ISO 45001 certification, and is audited by an objective third party to achieve continuous improvement in the protection of labor safety and health. There were 4 occupational accidents involving 4 persons in our company this year, accounting for 0.922% of the number of employees. After the occurrence of occupational accidents, all	None

Promoting items	Implementation Status (Note 1)			Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Abstract Illustration
			supervisors and personnel need to thoroughly understand the cause of the accident and improve the use of mechanical equipment and assistive devices. Awareness of work safety, to eliminate the possibility of recurrence, the life safety of employees must be regarded as the first priority, and a people-oriented corporate culture must be implemented. The company had no fire accidents this year.
(4) Does the Company establish effective career development programs for its employees?	V		(4) The Company's personnel department has created a substitute staff mechanism through ranking and duties, and has established a system for the classification, promotion and transfer of staff, combined with staff education and training to provide effective career development opportunities for employees. To encourage middle and senior executives and employees to pursue on-the-job training, a subsidy of up to $200,000 is provided to obtain a master's degree.	None
(5) With respect to customer health and safety of products and services, customer privacy, marketing, and labeling, does the Company comply with relevant regulations and international standards, and formulate related consumer protection policies and appeal procedures?	V		(5) The company is committed to providing customers with the best products and services, and continues to invest in the development of green products that comply with EU RoHS, REACH and other environmental regulations and meet the green building materials standards. Some products have obtained the green building label.
Each plant has passed the ISO 9001 management system to ensure the quality of products with good production control and service quality, hoping to improve customer loyalty and establish long-term cooperation with customers.
In this year, there was no complaint on violation of customer privacy or loss of customer information, and no product and service related violations were fined.	None
(6) Does the Company have a supplier management policy that requires suppliers to comply with and implement relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights?	V		(6) The Company has drawn up a "Contractor Evaluation Guideline," whereby the compliance of suppliers with occupational safety and health regulations is considered an important evaluation criterion.
Specific implementation situation:
A. Fully understand the other party's business integrity, human rights and environmental sustainability before consulting, negotiating and signing contracts.
B. For suppliers entering the plant to carry out high-risk work, the contractor shall be informed of occupational safety and health precautions before the start of work. During the operation, the safety issues of the plant are publicized daily, and the work permit of the work area is signed daily. The Industrial Safety Division and the on-site unit shall check the contractor's use of tools and protective equipment for construction methods and safety environment on a daily basis.
C. For suppliers who have been working in high risk for a long time, in addition to the above-mentioned routine matters, meeting with the contractor every six months to make agreements and provide a notification manual for various	None

Promoting items	Implementation Status (Note 1)			Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Abstract Illustration
			operating environment hazards. In addition, a contract on industrial safety and environmental protection is signed every two years. In 2025, during inspections of suppliers performing high-risk tasks, certain safety-related deficiencies were identified; however, all have since been fully rectified.
5. Does the company refer to internationally accepted reporting standards or guidelines for compiling report on non-financial information, such as ESGreports? Did the previous release reports obtain a confirmation or assurance opinion from a third party verifier?	V		The first Sustainability Report, which is expected to be issued in 2025, is based on the GRI Sustainability Reporting Standards 2021 Edition (Universal Standards: 2021) issued by the Global Reporting Initiative; and also complies with the "Taiwan Stock Exchange Corporation Rules Governing" the Preparation and Filing of Sustainability Reports by TWSE Listed Companies". This report will be verified by GRI Certification (AA1000 AS v3 Type 1 medium warranty based on the principle of accountability).	None
6. If the Company has established the sustainable development principles based on "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies", please describe any discrepancy between the Principles and their implementation: The Company will establish the "Sustainable Development Best Practice Principles" in accordance with the actual implementation situation in the future.
7. Other important information to facilitate better understanding of the Company's sustainable development practices: The Company is dedicated to the promotion of social welfare, which is why it founded the Yee Fong Charitable Foundation in 1973 in conjunction with affiliates such as Yee Fong Chemical & Industrial Co and Chin Yi Ho Hang Ltd. The purpose of the foundation is to organize or donate to social welfare and charitable causes, including medical aid, emergency relief, disaster relief and educational subsidies, and actively participate in social assistance for the underprivileged, sponsor community association activities and encourage the participation of employees in order to give back to the community. In 2025, expenditure of N$7.98 million was allocated to 51 organizations to create a multiplier effect through the benevolence of each organization: A. Medical subsidies: disease prevention education, elderly and dementia care, hospice care, in-home bathing, etc. B. Emergency assistance: medical treatment for the poor, emergency relief, medical care, etc. C. Disaster relief: to purchase disaster prevention equipment, repair disaster repair and education publicity. D. Educational subsidies: after-school tutoring for schoolchildren in rural areas, children's homes, student’s second speciality etc...

Note 1: If "Yes" is selected for operation, please explain the important policies, strategies and measures adopted and their implementation; if "No" is selected for implementation, please explain the deviations and reasons in the column "Deviations from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies", and indicate the relevant plan of policies, strategies and measures to be adopted in the future.
Note 2: Materiality refers to the environmental, social and corporate governance issues that have a significant impact on the Company's investors and other Stakeholders.
Note 3: Please refer to the best practice reference examples on the website of the Corporate Governance Center of the Taiwan Stock Exchange for disclosure methods.

(6) Climate-Related Information of Listed Companies: Please refer to Appendix III of the Sustainability Report on the Company's official website. (URL: https://www.opc.com.tw/files/2024opc-esg.pdf)

"Complete assurance information will be disclosed in the Sustainability Report."

(7) Fulfillment of Ethical Corporate Governance, the Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and Reasons:

Evaluation Item	Implementation Status (Note)			Deviations from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Abstract Illustration
1. Establishment of ethical corporate management policies and programs
(1)Has the company established the ethical corporate management policies approved by the Board of Directors and specified in its rules and external documents the ethical corporate management policies and practices and the commitment of the board of directors and senior management to rigorous and thorough implementation of such policies?	V		(1)In order to strengthen the corporate culture of ethical corporate management, the Company has established "the Corporate Governance Best-Practice Principles" which were approved by the Board of Directorsto regulate the policies and practices of honest management, and regularly conducts education and training for Directors, managers and other related personnel in order to fulfill the commitment to the ethical corporate management policies.	None
(2)Has the company established a risk assessment mechanism against unethical conduct, analyze and assess on a regular basis business activities within its business scope which are at a higher risk of being involved in unethical conduct, and establish prevention programs accordingly, which shall at least include the preventive measures specified in Paragraph 2, Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies"?	V		(2)The Company take "the Corporate Governance Best-Practice Principles" as a risk assessment mechanism against unethical conduct,and analyze business activities which are at a higher risk of being involved in unethical conduct,and establish prevention programs accordingly, which shall include the preventive measures specified in Paragraph 2, Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies".	None
(3)Has the company specified in its prevention programs the operating procedures, guidelines, punishments for violations, and a grievance system and implemented them and review the prevention programs on a regular basis?	V		(3)The company has established the "Procedures for Ethical Management and Guidelines for Conduct", and the violation punishment and grievance system for unethical conduct are handled in accordance with the guidelines.	None
2. Implementing ethical corporate management
(1)Does the company evaluate business partners' ethical records and include ethics-related clauses in business contracts?	V		(1)The legitimacy of dealings with suppliers and customers isconsidered before transactions are made and any record of dishonest behaviour is taken into account, and the company's ethical corporate management policies and relevant regulations will timely be explained to the transaction object.	None
(2)Has the company set up a dedicated (concurrent serving) unit under the Board of Directors to promote ethical corporate management and regularly (at least once every year) report to the Board of Directors the implementation of the ethical corporate management policies and prevention programs against unethical conduct?	V		(2)The Company's management department is responsible for the formulation of ethical management policies and preventive programs, and oversees the implementation thereof, and reports regularly to the board of directors for the purpose of sound ethical management.	None

Evaluation Item	Implementation Status (Note)			Deviations from "the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies" and Reasons
	Yes	No	Abstract Illustration
(3)Does the company establish policies to prevent conflicts of interest and provide appropriate communication channels, and implement it?	V		(3)The Company provides appropriate channels for employees to make complaints through a suggestion box or to the plant administration, plant affairs and management departments. Directors, supervisors or managers should recuse themselves from any matter in which they have an interest.	None
(4)Has the company established effective accounting systems and internal control systems to implement ethical corporate management and had its internal audit unit, based on the results of assessment of the risk of involvement in unethical conduct, devise relevant audit plans and audit the compliance with the prevention programs accordingly or entrusted a CPA to conduct the audit?	V		(4)The audit department regularly audits the internal operations of the Company and reports the results to the board of directors.	None
(5)Does the company regularly hold internal and external educational trainings on ethical management?	V		(5) In 2025 the Company held relevant training courses totaling 3 hours, with a total of 30 participants.	None
3. Operations of the whistleblowing channel
(1)Does the company establish a specific whistleblowing and reward system, set up convenient whistleblowing channels and designated appropriate personnel?	V		(1)The Company has set up a suggestion box to facilitate reporting, and has established the "Employee Work Rules" and an award and penalty committee. If an employee reports a whistleblowing or is in breach of the rules, he/she will be sent to the committee for appropriate rewards or penalties, depending on the seriousness of the case.	None
(2)Has the company established the standard operating procedures for investigating reported misconduct, follow-up measures to be adopted after the investigation, and related confidentiality mechanisms?	V		(2)The company's management regulations have relevant operating procedures for the investigation follow-up measures and confidentiality mechanisms of reported matters.	None
(3)Does the company adopt proper measures to prevent a whistleblower from retaliation for his/her filing a complaint?	V		(3)The Company protects the identity of the whistleblower from improper treatment and threats as a result of the whistleblowing.	None
4. Strengthening information disclosure
(1)Does the company disclose its ethical corporate management policies and the results of its implementation on the company's website and the Market Observation Post System (MOPS)?	V		(1)The company announces the company's Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies", please describe any discrepancy between the policies and their implementation: The Company has established "Procedures for Ethical Management and Guidelines for Conduct," and no material deviation is found between actual implementations and the Procedures.	None

Evaluation Item	Implementation Status (Note)			Deviations from “the Corporate Governance Best- Practice Principles for TWSE/TPEx Listed Companies” and Reasons
	Yes	No	Abstract Illustration
6. Other important information that facilitate the understanding of the implementation of ethical corporate management: The company upholds the spirit of ethical management, complies with the Company Act, the Securities and Exchange Act and other laws and regulations, and promotes the implementation of the policy of ethical management by its vendors, directors, managers and employees, so that the company can develop towards the concept of sustainable management.

Note: Regardless of whether the evaluation item is achieved or not, the company shall state an appropriate explanation in the column of Abstract Illustration.

(8) Other Important Information Regarding Corporate Governance:

In accordance with the regulations of the competent authority, the Company amended the scope of "junior employees" within the "Employee Bonus Regulations." This amendment was approved by the Board of Directors on August 06, 2025.

(9) Internal Control Systems:

A. Statement of internal control

For the abovementioned information, please visit the Public Information Observation Station, link to: https://mopsov.twse.com.tw/nas/cont06/c1321114011150311.pdf

B. Accountant's review report on the internal control system of the project entrusted to the accountant: None

(10) Major Resolutions of Shareholders' Meeting and Board Meetings for the most recent year and up to the date of printing of the annual report:

A. The content and implementation of the important resolutions of the 2025: Annual General Meeting of Shareholder on Jun 4, 2025.

a. Adoption of the 2024 Business Report and Financial Statements, please acknowledge it. Enforcement: Resolution passed.

b. Adoption of the Proposal for earnings appropriation of 2024, please acknowledge it. Endorcement: I was resolved that the company will distribute NT$0.38 EPS for this year.

c. Proposal to amend certain articles of the Company's Articles of Incorporation. Submitted for resolution.

Enforcement: Resolution passed.

B. Important resolutions of the board of directors

Date	Summary of the meeting contents
3/7/2025	1. Ratification of the Company's loans to others as of January 2025.
2. Approval of the 2024 Financial Statements and Consolidated Financial Statements.
3. Approval of the 2024 Earnings Distribution Proposal and the 2024 Business Report.
4. Approval of the 2024 "Internal Control System Statement."
5. Approval of the amendments to certain articles of the Company's Articles of Incorporation.
6. Approval of the appointment of CPAs Yu, Sheng-Ho and Luo, Jui-Chih of KPMG as the external auditors for the 2025 financial and tax reports.
7. Approval of the change of external auditors for the Company's 100%-owned subsidiary, Chang Hsin Hsin Yeh Co., Ltd.
8. Approval of the change of external audit firm for the Company's offshore subsidiaries.
9. Approval of the addition of "General Principles for the Pre-approval Policy of Non-Assurance Services" of the Company.
10. Approval of the issuance of Bank Guarantee letters required for the application of India BIS certification.
11. Approval of the date, venue, method, and agenda for the 2025 Annual General Shareholders' Meeting.
12. Approval of the 2024 Director Remuneration and Employee Compensation.
13. Approval of the distribution of 2024 Director Remuneration and the portion of Employee Compensation allocated to managers.
5/9/2025	1. Ratification of the Company's loans to others as of March 2025.
2. Approval of the 2025 Q1 Consolidated Financial Statements.
3. Approval of the renewal of the Sustainability-Linked Loan (SLL) facility with Taipei Fubon Bank.
8/6/2025	1. Ratification of the Company's loans to others as of June 2025.
2. Approval of the 2025 Q2 Consolidated Financial Statements.
3. Approval of the content of the Company's 2024 Sustainability Report.
4. Approval of the renewal of financing facilities with Chang Hwa Bank.
5. Approval of the renewal of medium-term secured loan facilities with Yuanta Bank.

Date	Summary of the meeting contents
	6. Approval of the maximum average salary increase for employees in 2025, set at 4% of base salary.7. Approval of the amendments to the "Measures for the Distribution of Employee Bonuses" to expand the scope of junior-level employees.8. Approval of the 2024 cash dividend distribution to shareholders.
11/7/2025	1. Ratification of the Company's loans to others as of September 2025.2. Approval of the 2025 Q3 Consolidated Financial Statements.3. Approval of the Company's 2026 Audit Plan.4. Approval of the application for financing facilities with Cathay United Bank.5. Approval of the amendments to certain text in the Company's "Measures for the Distribution of Employee Bonuses."
12/26/2025	1. Ratification of the Company's loans to others as of November 2025.2. Approval of the Company's 2026 Capital Expenditure (CAPEX) Budget and Profit & Loss (P&L) Budget.3. Approval of the renewal of comprehensive credit facilities with First Commercial Bank.4. Approval of the renewal of comprehensive credit facilities with Hua Nan Bank.5. Approval of the distribution of 2025 year-end bonuses for managers and employees.
3/10/2025	1. Ratification of the Company's loans to others as of January 2026.2. Approval of the 2025 Financial Statements and Consolidated Financial Statements.3. Approval of the 2025 Deficit Compensation Table and the 2025 Business Report.4. Approval of the 2025 "Internal Control System Statement."5. Approval of the appointment of KPMG to audit and certify the 2026 financial and tax reports.6. Approval of the addition of items to the Company's "General Principles for the Pre-approval Policy of Non-Assurance Services."7. Approval of the date, venue, method, and agenda for the 2026 Annual General Shareholders' Meeting.

(11) Major Issues of Record or Written Statements Made by Any Director or Supervisor Dissenting to Important Resolutions Passed by the Board of Directors: None

5. Information Regarding the Company's Audit Fee:

Unit: NT$1,000

Accounting Firm	Name of CPA	Period Covered by CPA's Audit	Audit Fee	Non-audit Fee (Note )	Total	Remark
KPMG Taiwan	Yu, Sheng-Ho	01.01.2025~12.31.2025	2,381	577	2,958	The Tax Compliance Audit for Ocean Plastics Co., Ltd. in 2025
	Luo, Jui-Chih

Please specify the non-audit services (such as Tax Compliance Audit or other financial consulting services).

Note: If the Company changes its accountant or accounting firm during the year, please list the audit period and the reasons for the change in the Remarks column, and disclose the audit and non-audit fees paid in order. The non-audit fees should be accompanied by a description of the services provided.

(1) If you change your accounting firm and the audit fee paid in the year of change is less than the audit fee paid in the year before the change, you should disclose the amount of the audit fee before and after the change and the reasons for the change: None.
(2) If the audit fee is reduced by $10\%$ or more from the previous year, the amount, percentage and reason for the reduction of audit fee shall be disclosed: None

Replacement of CPA: None
Where the company's chairperson, General Manager, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its CPAs or at an affiliated enterprise of such accounting firm: None
Any transfer of equity interests and pledge and change in equity interests by a director, supervisor, managerial officer, or shareholder with a stake of more than 10 percent:
For the abovementioned information, please visit the Public Information Observatory Station, link to: https://mops.twse.com.tw/mops/#/web/stapap1, and enter the Company's stock code: 1321.
Relationship information, if among the company's 10 largest shareholders any one is a related party or a relative within the second degree of kinship of another

Relationship among the Top Ten Shareholders
April 6, 2026

Name	Current Shareholding		Spouse's/minor's Shareholding		Shareholding by Nominee Arrangement		Name and Relationship Between the Company's Top Ten Shareholders, or Spouses or Relatives Within Two Degree		Remarks
	Shares	%	Shares	%	Shares	%	Name	Relationship
Yee Fong Chemical & Industrial Co., Ltd	12,425,769	5.47	-	-	-	-	-	-	-
(Juristic person representative of Yee Fong Chemical & Industrial Co., Ltd.) Chen Chin-Wen	2,050,788	0.90	276,897	0.12	-	-	-	-	-
Pei Hsun Enterprise Industrial Co., Ltd.	6,796,973	2.99	-	-	-	-	-	-	-
(Juristic person representative of Pei Hsun Enterprise Co., Ltd.) Yeh, Wen-Hung	-	-	-	-	-	-	-	-	-
Chen Chi-Yuan	5,799,128	2.55	527,000	0.23	-	-	Chen Chin-Ming	brothers	-
							Chen Yu-Mei	Siblings
Mercuries Life Insurance Co., Ltd.	5,447,771	2.40	-	-	-	-	-	-	-
Heng-Chih Investment Co.,Ltd. Trust Account	172,677	0.08	-	-	-	-	Chen Chin-Ming Chen Chi-Yuan	Siblings	-
TAN, KIN-MEN	4,695,202	2.07	-	-	-	-	Chen, Chi-Yuan	brothers	-
							Chen, Yu-Mei	Siblings
Chen Chin-Chuan	4,359,243	1.92	-	-	-	-	Chen, Chin-Hisung	Brother	-
Chen, Chin-Hsiung	3,943,860	1.74	-	-	-	-	Chen, Chin-Chuan	Brother	-
Hung-Ta Investment Co., Ltd.	3,603,654	1.59	-	-	-	-	-	-	-
Chiu, Chun-Fu Legal Reprosentative of Hung-Ta	-	-	-	-	-	-	-	-	-
Chin Yi Ho Investment Co., Ltd.	3,397,085	1.50	-	-	-	-	-	-	-

| Tan, Kin-Men
Legal Representative of
Chin Yi Ho | Please refer to the information regarding to Director Tan, Kin-Men. | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Yee Fong Industrial Co., Ltd. | 3,219,216 | 1.42 | - | - | - | - | - | - | - |
| Chiu, Chun-Fu
Legal Representative of
Yee fong | 3,031,704 | 1.33 | 639,810 | 0.28 | - | - | - | - | - |

The total number of shares and total equity stake held in any single enterprise by the company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly by the company:

Ownership of Shares in Affiliated Enterprises

As of March 31, 2025 Unit: thousand shares; %

| Affiliated Enterprises
(Note) | Ownership by the Company | | Direct or Indirect Ownership by Directors, Supervisors, Managers | | Total Ownership | |
| --- | --- | --- | --- | --- | --- | --- |
| | Shares | (%) | Shares | Shares | (%) | Shares |
| Chun Pin Enterprise Co., Ltd. | 29,000 | 44.62 | - | - | 29,000 | 44.62 |
| Chang-Hsin-Hsin-Yeh Co., Ltd. | 290,086 | 100.00 | - | - | 290,086 | 100.00 |
| Hung-Ta Investment Co., Ltd. | 19,000 | 100.00 | - | - | 19,000 | 100.00 |
| FERMAT ENTERPRISES,LTD. | 450 | 100.00 | - | - | 450 | 100.00 |
| OCEAN GROUP,LTD. | 32,900 | 100.00 | - | - | 32,900 | 100.00 |
| Fine Environment Technologies Co., Ltd. | 1,003 | 60.76 | 647 | 39.24 | 1,650 | 100.00 |
| Foremost-Oceans NueTeq, Ltd. | 605 | 40.07 | | | 605 | 40.07 |

Note: Investments made by the Company and accounted for using equity method.

III. Capital Overview

Capital and Shares:

(1) Source of Capital:
April 20, 2026 Unit: Shares; NT$1

Month/Year	Par Value (NT$)	Authorized Capital		Paid-in Capital		Remark
		Shares	Amount	Shares	Amount	Sources of Capital	Capital Increased by Assets Other than Cash	Other
6/1965	100	300,000	30,000,000	300,000	30,000,000	Cash investment of NT$30,000,000	None
3/1972	100	450,000	45,000,000	450,000	45,000,000	Transfer of surplus to capital of NT$15,000,000	None
4/1973	100	600,000	60,000,000	600,000	60,000,000	Transfer of surplus to capital of NT$15,000,000	None
101974	100	900,000	90,000,000	900,000	90,000,000	Transfer of surplus to capital of NT$30,000,000	None
2/1975	100	1,100,000	110,000,000	1,100,000	110,000,000	Transfer of surplus to capital of NT$20,000,000	None
6/1976	100	1,375,000	137,500,000	1,375,000	137,500,000	Transfer of surplus to capital of NT$27,500,000	None
8/1796	100	2,138,000	213,800,000	2,138,000	213,800,000	Merger of Yee Fong Plastics Co., Ltd. NT$76,300,000	None
5/1977	100	2,779,400	277,940,000	2,779,400	277,940,000	Transfer of surplus to capital of NT$21,380,000
Capital reserve to increase capital by NT$42,760,000	None
8/1978	100	3,168,516	316,851,600	3,168,516	316,851,600	Transfer of surplus to capital of NT$38,911,600	None
6/1979	100	3,802,219	380,221,900	3,802,219	380,221,900	Transfer of surplus to capital of NT$63,370,300	None
7/1980	100	4,182,441	418,244,100	4,182,441	418,244,100	Transfer of surplus to capital of NT$38,022,200	None
11/1987	10	54,371,733	543,717,330	54,371,733	543,717,330	Change of denomination and capitalization of surplus by $125,473,230	None
7/1988	10	65,246,080	652,460,800	65,246,080	652,460,800	Transfer of surplus to capital of $108,743,470	None
9/1989	10	79,600,218	796,002,180	79,600,218	796,002,180	Transfer of surplus to capital of $134,406,930
Capital reserve transferred to capital of $9,134,450	None
9/1991	10	99,500,273	995,002,730	99,500,273	995,002,730	Transfer of surplus to capital of $127,360,350
Capital reserve transferred to capital of $71,640,200	None
9/1992	10	109,450,302	1,094,503,020	109,450,302	1,094,503,020	Transfer of surplus to capital of $69,650,200
Capital reserve transferred to capital of $29,850,090	None
9/1993	10	123,678,843	1,236,788,430	123,678,843	1,236,788,430	Transfer of surplus to capital of $131,340,370
Capital reserve transferred to capital of $10,945,040	None

Month/Year	Par Value (NT$)	Authorized Capital		Paid-in Capital		Remark
		Shares	Amount	Shares	Amount	Sources of Capital	Capital Increased by Assets Other than Cash	Other
9/1995	10	136,046,728	1,360,467,280	136,046,728	1,360,467,280	Transfer of surplus to capital of $115,021,330
Capital reserve transferred to capital of $8,657,520	None	Note 1
8/1996	10	157,406,066	1,574,060,660	157,406,066	1,574,060,660	Transfer of surplus to capital of $204,070,100
Capital reserve transferred to capital of $9,523,280	None	Note 2
10/1996	10	162,306,066	1,623,060,660	162,306,066	1,623,060,660	Cash capital increase of $49,000,000	None	Note 3
7/1998	10	198,175,707	1,981,757,070	198,175,707	1,981,757,070	Capital reserve transferred to capital of $358,696,410	None	Note 4
8/2000	10	208,084,494	2,080,844,940	208,084,494	2,080,844,940	Transfer of surplus to capital of $79,270,290
Capital reserve transferred to capital of $19,817,580	None	Note 5
8/2005	10	218,488,719	2,184,887,190	218,488,719	2,184,887,190	Transfer of surplus to capital of $104,042,250	None	Note 6
8/2006	10	227,228,268	2,272,282,680	227,228,268	2,272,282,680	Transfer of surplus to capital of $87,395,490	None	Note 7

Note:
1 Approved by the Securities Commission of the Ministry of Finance (82.7.9), Taiwan Financial Services Commission (1) Letter No. 29506
2 Approved by the Securities Commission of the Ministry of Finance (84.6.30), Taiwan Financial Securities (I) No. 38156
3 Approved by the Securities Commission of the Ministry of Finance (85.7.3), Taiwan Financial Services Commission (1) Letter No. 41690
4 Approved by the Securities and Futures Commission, Ministry of Finance (87.6.26), Taiwan Financial Securities (I) No. 55942
5 Approved by the Securities and Futures Commission of the Ministry of Finance (89.7.7), Taiwan Financial Securities (I) No. 58829
6 Approved by the Financial Supervisory Commission, Executive Yuan (94.7.12), Financial Supervisory Commission No. 0940128031
7 Approved by the Financial Supervisory Commission, Executive Yuan (95.6.29), Financial Supervisory Commission No. 0950127211

Unit: Shares

Share Type	Authorized Capital			Remarks
	Issued Shares	Un-issued Shares	Total Shares
Ordinary shares	227,228,268	172,771,732	400,000,000	Listed Company Stocks

Information about the master reporting system: None

(2)Status of Shareholders

April 6, 2026

Shares Shareholder's Name	Shareholding (shares)	{ercemtage %}
Yee Fong Chemical & Industrial Co., Ltd.	12,425,769	5.47
Pei-Hsun Enterprise Co., Ltd.	6,796,973	2.99
Chen Chi-Yuan	5,799,128	2.55
Henchi Investment Trust Account	5,447,771	2.40
Tan, Kin-Men	4,695,202	2.07
Chen, Chin-Chuan	4,359,243	1.92
Chen, Chini-Hsiung	3,943,860	1.74
Hung-Ta Investment Co., Ltd.	3,603,654	1.59
Chin I Ho Investment Co., Ltd.	3,397,085	1.50
Yi Fong Industrial Co., Ltd.	3,219,216	1.42

(3) Dividend Policy and Implementation Status

A. Dividend Policy:

The Company adopts a stable dividend payment policy based on the principle of profit sharing with shareholders, and the dividend policy set forth in the Company's Articles of Incorporation is as follows.

The Company's annual financial statements shall first make up for prior years' deficits if there is any after-tax profit, and then set aside 10% of the remaining balance as legal reserve. In addition, as required by law, after setting aside or reversing the special reserve, the accumulated undistributed earnings shall be added to the available-for-distribution earnings, and the Board of Directors shall, in accordance with the Company's dividend policy, prepare a proposal for distribution of earnings to the shareholders for resolution.

The former dividend policy is to distribute cash dividends, capitalization of earnings, and capitalization of capital reserves in three ways, depending on the profitability of the year, with no less than 20% of the dividends to be distributed. If the Company has investment plans or needs to improve its financial structure, cash dividends may be paid by transferring capital from earnings or capital surplus, provided that the minimum cash payout ratio shall not be less than 10% of the total dividends allotted.

B. Proposed Distribution of Dividend: It is proposed at this Shareholder's Meeting that no dividends will be distributed.

(4) Effect of the proposed gratis allotment of shares at the shareholders' meeting on the Company's operating results and earnings per share: Not applicable

(5) Employee Bonus and Directors' and Supervisors' Remuneration:

A. Information Relating to Employee Bonus and Directors' and Supervisors' Remuneration in the Articles of Incorporation:

If the Company makes a profit in its annual accounts, it shall set aside not less than 1% for employees' remuneration and not more than 2% for directors' remuneration, but shall reservethe amount to cover any accumulated losses in advance.

Of the total amount of employee compensation appropriated according to the preceding paragraph, no less than 40% shall be distributed to junior employees.

The "profit" referred to in the first paragraph shall mean the amount of profit before tax, before deducting the distributed employee compensation and directors' remuneration.

The Company may distribute employee remuneration to employees who meet certain criteria.

B. The Estimated Basis for Calculating the Employee Bonus and Directors' and Supervisors' Remuneration, the basis for calculating the number of shares for employee remuneration distributed by stock, and accounting for differences between the actual distribution amount and the estimated amount in this period:

a. The estimated basis in this period

Employee compensation is appropriated at approximately 1.7% and Directors' and Supervisors' remuneration at approximately 1.3% based on the net profit before tax for the current period; however, this is not applicable for the current year due to the net loss before tax.

b. The calculation based on the number of shares of employee remuneration distributed from stock

There is no stock distribution of employee remuneration this time, so it is not applicable.

c. If the actual amount of appropriation differs from the amount of distribution approved by the board of directors, it is recorded as profit or loss in the following year according to the accounting change.

C. Distribution of for this year approved in Board of Directors Meeting:

a. Distributed amount of remunerations of employee and director in cash or stock: NT$0

b. The amount of employee remuneration distributed by stock and its proportion to net income after tax and total employee remuneration in the non-consolidated or individual financial report of the current period: Not applicable.

D. Information of Earnings Set Aside for Employee Bonus and Directors' and Supervisors' Remuneration for Last Year:

a. Actual distributions: Directors' remuneration $2,980,000 in cash and no employees' remuneration $2,279,000 in cash.

b. Differences in remuneration to employees, directors and supervisors, causes and treatment: No differences.

(6) Buyback of Treasury Stock: None.

Corporate Bonds: None.
Special share: None.
Global Depository Receipts: None.
Employee Stock Options: None.
Issuance of New Restricted Employee Shares: None.
Status of New Shares Issuance in Connection with Mergers and Acquisitions: None.
Financing Plans and Implementation: None

VI. Operational Highlights

Business Activities:

(1) Business Scope:

A. Main areas of business operations:

Manufacture and sale of plastic materials.
Manufacture and sale of plastic products.
Manufacture and sale of raw materials incidental to the plastic industry.
C801020 Manufacture of Petrochemical Materials
C801040 Synthetic Resin Manufacturing
C801990 Other chemical materials manufacturing (plastic alloys of mixed pellets, plastic steel of mixedpellets, concentrated materials)
H701010 Residential and building development for lease and sale.
H701020 Industrial plant development for lease and sale.
H703010 Factory for rent.
H703030 Office building for lease.
F401010 International Trade.
F301010 Department store business.
F301020 Super market industry.
F301030 General department store.
ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval

B. Revenue distribution:

The Company is principally engaged in the manufacture and sale of plastic materials and products, and the operating weight of each business is as follows

| FY
Main Product | 2024 | 2025 |
| --- | --- | --- |
| Plastic Cloth | 18.77% | 23.52% |
| Synthetic leather | 3.43% | 5.13% |
| Plastic Building Materials | 17.2% | 22.71% |
| Plastic Materials | 60.6% | 48.64% |
| Total | 100.00% | 100.00% |

C. Current products and new products planned to be developed:

Processing Dept.: Elegant Wood (WPC), transparent films, colored films, rigid films, printed films, laminated films, and printed/embossed/laminated films, etc..

Planned Development of New Products:

Flame-retardant transparent films for tents, boat windows, and industrial curtains.
Printed materials for various building materials and wallpaper applications.
Laminated materials and inkjet printing substrates for various advertising purposes.
Colored laminated films for dance mats, targeting concert market opportunities.
Wave-free (non-ripple) films for curtains.
Fire-resistant and flame-retardant films in jumbo rolls for mining applications.

Synthetic Leather Dept.: Synthetic Leather Division produces DMF-Free eco-friendly PU products, categorized into two main groups: (1) Water-based PU resins, synthetic leather, and membrane materials. (2) Solvent-free pre-polymer PPU resins and synthetic leather. The resins are widely sold for functional textile coatings, laminations, and synthetic leather processing. The synthetic leather is applied in furniture, sporting goods, packaging materials, gloves, and electronic products. Additionally, the Company has launched sustainable materials such as Bio-based materials for sustainable development.

Building Materials Dept.: PVC rigid pipes, impact-resistant pipes, PVC-DWV foam pipes, CD flexible pipes, fittings, large sweeping bends, general sheets, impact-resistant sheets, foam compounds, blow molding compounds, injection molding compounds, trunking (wiring duct) compounds, shrink film compounds, WPC (Wood-Plastic Composite), roof tile battens, drainage strips, PE foam park bench materials, and PVC foam lumber, etc.

Raw Materials Dept.: Plastic powder, plastic pellets, environmental pellets, medical pellets and large thick transparent tube pellets, etc.

(2) Industry Overview:

The international market continues to be affected by the ongoing Russia-Ukraine war and the Israel-Palestine conflict. With international oil prices fluctuating within a high-range interval, the selling prices of petrochemical products have fluctuated accordingly. Although the global economy is recovering slowly, the demand for petrochemical products remains weak. The market is characterized by oversupply and intense competition, with rising costs further compressing profit margins. Adhering to a philosophy of steady management, the Company has adopted flexible adjustments for raw material procurement based on market conditions and production capacity. Simultaneously, we have accelerated the adjustment of our product structure, developed new commodities, and integrated diversified resources to enhance overall operational efficiency.

The Synthetic Leather Division is dedicated to producing eco-friendly PU resins and synthetic leather, which are now capable of replacing traditional solvent-based PU. Our existing customer base faces a global economic downturn and declining consumer purchasing power, leading to more conservative ordering patterns and an increase in urgent orders. In 2025, although inventory destocking was largely completed across most global industries, the synthetic leather industry's demand remained weak due to external environmental factors and market uncertainty. To counter this downturn, the division has actively participated in international exhibitions to promote OPC's eco-friendly materials, aggressively seeking to develop potential domestic and international clients with green requirements. The department is working diligently to develop products with specialized properties—such as bio-based circular economy and other sustainable materials—and is promoting these to the global market through various applications.

In the piping materials sector, the semiconductor and technology industries have shown strong shipping momentum this year, driven by the continuous expansion of AI and memory demand. Coupled with the ongoing AI boom, technology companies are steadily advancing factory construction plans, which will continue to release opportunities in factory/office construction, electromechanical, and piping engineering projects. However, the private residential market remains sluggish due to government cooling measures, resulting in a contraction of new project starts. Furthermore, the ongoing conflicts in the Middle East are expected to drive up construction material costs. The US-Iran tension has pushed up international oil and raw material prices, leading to panic buying in the market. While we initially expected the first half of the year to be a period of volume contraction and structural adjustment, the impact of the Middle East conflict has acted as a timely catalyst, and shipping dynamics are expected to maintain steady growth.

Regarding PVC sheets:

(1) The global economy is still impacted by inflation and supply chain issues, leading downstream customers to maintain conservative inventory levels. Market demand continues to be weak. However, as the post-pandemic economy recovers, the consumer market is beginning to warm up, and demand in certain industries is showing signs of improvement.

(2) Intensified Overseas Competition and Persistent Low-Price Competition:

Overseas PVC plastic sheet production capacity continues to expand, with competitors adopting low-price strategies to secure orders, resulting in price gaps of 20-30% compared to Taiwan.
With increasing demand for high value-added products, the company needs to enhance product features to maintain competitive advantages.

(3) Rising Pressure from Environmental Policies:

The introduction of carbon taxes, coupled with stricter electricity prices and environmental regulations, has imposed higher cost pressures on the plastic manufacturing industry.
Demand for green products and recyclable materials is increasing, and environmental certifications will become a crucial factor in corporate competitiveness.

PVC resin is the raw material of the company's main products. Changes in the upstream supply and demand conditions affect the profit margins of the company. Efforts will focus on improving production quality and efficiency to maintain stable operations. As for PVC compound pellets, the company will develop new products and explore new markets to achieve optimal profitability. Under environmental considerations, leveraging the inherent characteristics of existing raw materials to meet future market demands will be the development priority.

Regarding China operations, the Dongguan Chuangxin Plant is strategically located close to downstream customers for timely delivery. Meanwhile, the Huizhou Plant in Guangdong produces pool liners (swimming pool films) to expand into export markets. These efforts facilitate product sales and provide the best combinations of product offerings to meet customer needs, thereby creating profit benefits.

(3) Research and Development:

A. Recent Annual Expenses: NT$14,850,000 for 2025.

B. Technology or products successfully developed in 2025

a. Development of High-Softness PVC Medical Compounds: I. Passed Grade 2 Medical Device Cytotoxicity Testing.

i. Non-P (Non-Phthalate) plasticizer formulation: A9-90-S80 exhibits excellent oil-bleeding resistance.

b. Development of TPE Flame-Retardant Wood-Like Products:

i. Smoke-suppressant and flame-retardant formulation 0106 with optimized processing fluidity: Achieved UL94 V0 flame-retardant rating.

ii. Compression-molded foam boards: Density = 0.9; Flexural Strength = $236\text{text}$ {kg/cm}^2$; Flexural Modulus = $18,800\text{text}$ {kg/cm}^2$.

c. Development and Evaluation of Reduced-Plastic PVC Medical Patch Materials:

i. VT37 & VT55 formulation film materials: Calender processing suitability (Pass); High-frequency bonding efficiency (Pass).

d. Development and Evaluation of PETG for Electronic Component Packaging Tubes:

i. The transparency, fluidity, and mold-release properties of the Y13 functional compound formulation have met market technical benchmarks.

(4) Long-term and Short-term Development:

A. Short-term Development:

Processing Dept.:

a. In response to the Russia-Ukraine war and geopolitical risks, we aim to expand into Southeast Asian and Middle Eastern markets to reduce reliance on a single market.

b. Using AI analysis and data-driven management to increase production efficiency while reducing manufacturing costs and waste.

c. Expanding digital marketing efforts, including social media, online exhibitions, and SEO optimization, to enhance international visibility.

d. Negotiating long-term cooperation agreements with key customers to ensure a stable source of orders.

Synthetic Leather Dept.:

In 2025, the Russia-Ukraine war, the Israel-Palestine conflict, and increasing tariff barriers brought about global political and economic uncertainty, inflation, and a subsequent contraction in consumer spending. Some manufacturers have opted for a steady and conservative approach, focusing on stabilizing their core business, reducing R&D investment, and instead concentrating on different combinations and variations of existing products. Conversely, other manufacturers have chosen to confront the urgent need for transformation brought about by this environment, demonstrating a willingness to adopt new products or technologies. This has provided a growth opportunity for OPC's synthetic leather to enter the eco-friendly PU market ahead of schedule. Our existing products are meeting market demands for water-based and solvent-free PU, gradually expanding into customer segments specifically seeking ESG transformation for their product lines.

Building Materials Dept.:

a. Driven by the trend of net-zero emissions and AI emerging technologies, global economic activity and demand are gradually recovering this year. We will continue collaborating with distributors and domestic manufacturers for mutual benefit.

b. Talent recruitment has been challenging in the past, but during the current economic downturn, we aim to attract high-quality applicants through the company's stable image and long-term vision.

c. Leveraging existing products to meet market demands, we will actively expand our customer base and secure orders through online platforms, promotional materials, and exhibitions to enhance market visibility and share.

d. To counter aggressive price-cutting and order-grabbing by competitors, the Company must effectively reduce manufacturing and selling expenses to remain competitive within the industry.

Raw Materials Dept.:

a. While recruiting talent has been challenging in the past, the Company aims to attract high-quality candidates by leveraging our stable corporate image and forward-looking future vision.

b. Leveraging existing products to meet market demands, we will actively expand our customer base and secure orders through online platforms, promotional materials, and exhibitions to enhance market visibility and share.

c. To counter aggressive price-cutting and order-grabbing by competitors, the Company must effectively reduce manufacturing and selling expenses to remain competitive within the industry.

B. Long-term Development:

Processing Dept.:

a. Promote the R&D of high value-added products: Develop specialized PVC sheets with features like flame resistance, UV protection, and high transparency to capture the premium market.
b. Increase the proportion of green products: Actively develop eco-friendly PVC materials to meet ESG and international environmental standards.
c. Optimize production and order layouts: Evaluate order profitability while considering costs and supply chain factors, ensuring efficient production, shorter lead times, and reduced tariff impact.
d. Strengthen collaboration with international distributors: Expand market influence and enhance global market share through branding licenses and regional agency partnerships.

Synthetic Leather Dept.:

Facing challenges such as global supply chain restructuring and net-zero emissions, the industry is undergoing a critical transformation and upgrade. We will continuously develop high value-added, high-margin products while pursuing greener materials and more efficient processes, aiming for sustainable operations through zero-pollution, recyclable, and bio-based materials.

Building Materials Dept.:

a. New product developers and sales personnel will actively engage in technical service work to establish good interactive relationships with customers.
b. Continue developing high value-added, high-margin products while striving for greener materials and more efficient processes, targeting sustainability with zero-pollution, recyclable, and bio-based materials.
c. Efficiently manage existing idle land assets and initiate plans for developing residential and commercial areas at the Zhonghe factory site, aligning with the opening of the circular metro line.
d. Collaborate closely with distributors to jointly develop markets and secure new construction and public infrastructure projects to increase sales and profitability.

Raw Materials Dept.:

a. New product developers and sales personnel will actively engage in technical service work to establish good interactive relationships with customers.
b. Continue developing high value-added, high-margin products while pursuing greener materials and more efficient processes, aiming for zero-pollution, recyclable, and bio-based materials as sustainability goals.
c. Efficiently manage existing idle land assets and initiate plans for developing residential and commercial areas at the Zhonghe factory site, aligning with the opening of the circular metro line.
d. Collaborate closely with distributors to jointly develop markets and secure new construction and public infrastructure projects to increase sales and profitability.
e. Establish shortened supply chains with customers and explore production bases closer to clients to avoid international tariff barriers.

In the new year, the Taiwan parent company will focus on expanding sales as its primary goal and make appropriate adjustments based on the overall supply and demand conditions in the market. In terms of products, the company will move toward high value-added and technologically advanced items while continuing to invest resources in industry transformation. The Taiwan parent company will prioritize green products and green production processes. Overseas factories will operate flexibly to meet global market demands, offering customers the most rapid and appropriate product combinations.

Overview on Market and production/sales

(1) Market Analysis:

A. Sales (Service) Region:

Plastic cloth: Domestic sales 30.21%; export sales 69.79%, mainly in North America and the Middle East, etc.

Plastic Building Materials: 100% domestic sales.

Synthetic leather: Domestic sales 31.12%; export sales 68.88%, mainly in China and European countries ect.

Plastic Materials: Domestic sales 35.41%; export sales 64.59%, mainly in South Asia and Japan ect.

B. Market Share (%)

Product Name	Plastic cloth	Syntheticleather	Plastic Building Materials	Plastic Materials
Market Share	7.32%	8.21%	6.76%	3.71%

C. The future supply and demand situation and growth of the market, competitive niche and development prospect, favorable and unfavorable factors and countermeasures:

The Company is a manufacturer of plastic secondary processing products, the main products are plastic cloth, plastic pipe, PU synthetic leather and plastic powder. These products will be widely used in construction, medical, sports and industrial fields to show the diversity and market demand of its products. In recent years, we have intensified our research and development of bio-based and recycled eco-friendly materials that comply with European and American regulations. This effort creates market differentiation for high-value-added "ECO products." The specific details for each product line are provided below:

Plastic cloth:

Market Trends:

(1) Increased demand for eco-friendly plastic sheets: With the growing demand in the European and American markets for recyclable, low-carbon PVC products, the company need to accelerate research and development of environmental technologies.
(2) Recovery of outdoor and construction material markets: With the rise of outdoor camping and green energy construction, demand for transparent plastic sheets for tents, industrial curtains, and construction-use PVC is increasing.
(3) Great growth potential in emerging markets: Demand in Southeast Asia, the Middle East, and India continues to grow. The company will actively establish a presence in these regions to secure more international orders.

Competitive Advantages:

(1) Stable quality of Taiwan manufacturing ensures credibility in high-end markets.
(2) Technical advantages allow for the customization of PVC products to meet diverse industry needs.
(3) A responsive supply chain shortens delivery time to adapt to market changes.

Development Vision and Strategies:

(1) Continue investing in automated equipment to improve production efficiency and reduce labor costs.
(2) Establish an ESG-compliant supply chain to meet international environmental regulations and enhance brand image.
(3) Build long-term partnerships with global distributors to expand market share.

Synthetic leather:

Sustainability and environmental protection have become global megatrends, and traditional solvent-based products are facing multifaceted challenges from both market and environmental requirements. Even though sustainable products, such as OPC's water-based and solvent-free PU synthetic leathers, involve higher costs, the global demand for such products is imperative. Major global corporations have established explicit ESG goals to be achieved within specific timeframes, accompanied by increasingly stringent requirements for quality and functionality. Manufacturers must simultaneously satisfy the comprehensive needs of customers regarding sustainability, quality, and performance. OPC maintains full control over research, development, and production—from resin synthesis to synthetic leather processing. Our resin and synthetic leather applications possess excellent physical and chemical properties and have already achieved mass production. By leveraging our integrated capabilities in resin and processing, we provide development and production services that align more closely with customer needs and market trends. We will continue to focus on expanding our market share among customer segments that align with OPC's PU technology and sustainability roadmap.

continue striving to increase market acceptance and usage.

Plastic powder:

Given the oversupply in the PVC powder market, the company will focus on improving quality and production efficiency, strengthening export operations to diversify markets, and investing in storage facilities to lower overall costs, thereby enhancing future competitiveness.

Plastic Pellet:

To reduce transportation costs and tariff barriers, the company plans to add production lines in key markets. Additionally, the development of customized plastic pellet products will pave the way for future growth.

(2) Production Procedures of Main Products:

Plastic Fabric:

Widely used in construction, agriculture, industry, commerce, packaging, furniture, stationery, medical fields, and transportation, including but not limited to:

Tents and outdoor supplies: Transparent adhesive tape for tent windows, ship windows, etc.
Medical and hygiene uses: Medical diagnostic materials, protective fabrics, etc.
Printing and packaging materials: Advertising inkjet printing, signage printing, commercial packaging, etc.
Industrial uses: Dust covers, waterproof fabrics, flame-resistant industrial curtains.

Production Process:

The company adopts a fully automated production model. By using a precise dosing system, PVC powder and additives are mixed and pressed through Banbury Mixer and calendering machines to ensure product stability and high quality.

Conclusion

In 2025, the PVC sheeting industry faced unprecedented multi-dimensional pressures, primarily stemming from geopolitical conflicts, overcapacity in Mainland China, and the interactive effects of U.S. tariff policies. These factors have rendered the overall market environment increasingly volatile and uncertain. In response to these conditions, enterprises must enhance product differentiation, strengthen supply chain resilience, and actively explore new markets to maintain competitiveness and seek opportunities for transformation amidst fierce competition.

Synthetic Leather

Water-based PU Synthetic Leather: Successfully applied in sporting goods/equipment, gloves, footwear materials, and furniture. Solvent-free Pre-polymer (PPU) Synthetic Leather: Successfully applied in children's products, footwear materials, and consumer electronics.

Manufacturing Process

Eco-friendly PU resin is coated onto release paper and dried for molding. It is then laminated onto various types of fabrics based on specific requirements to produce different types of eco-friendly PU synthetic leather.

Building Materials Division

This division primarily supplies public utilities, the construction industry, sewage system pipes, aquaculture pipes, wire and cable conduits, and water supply pipes. Due to its broad coverage and critical link to national welfare and livelihoods, this division has maintained a growth trend over the years. To increase sales volume and production capacity, the Company is striving toward process automation and developing specialty products, such as impact-resistant and seismic-resistant pipes. Additionally, we have developed core-layer foam pipes to reduce noise, CD flexible conduits for electrical wiring, and large radius elbows to facilitate engineering construction.

Manufacturing Process

Utilizing an automated manufacturing process, products are formed using mixing systems, extruders, injection molding machines, and cooling water tanks, before being drawn and cut into finished goods.

Plastic Raw Materials

PVC Resin (Powder):

Primarily used as the raw material for plastic sheeting, leather, pipes, films, electrical insulation materials, blow molding, floor tiles, profile extrusion coatings, and inks.

Manufacturing Process (Resin):

Our PVC resin is produced through an automated system using polymerization tanks and dehydrators, followed by a final drying process into finished products. Plastic Pellets: Used mainly for extrusion, blow molding, film blowing, and medical-grade applications. Specialty Products: Includes halogen-free eco-friendly pellets for IC packaging tubes and newly developed extrusion pellets for large-diameter, thick transparent PVC pipes used as protective outer layers for corrosive and toxic substances in electronics companies.

(3) Supply Status of Main Materials:

Main raw materials
Name	Source of Supply	Supply Situation
PVC powder	Self made	Long-term cooperation, good
Vinyl chloridemonomer	Foreign import and domestic manufacturers	Long-term cooperation, good
Plasticizer	Foreign import and domestic manufacturers	Long-term cooperation, good
Adhesive	Domestic manufacturers	Long-term cooperation, good
Modifier	Foreign import	Long-term cooperation, good

(4) List of any suppliers and clients accounting for 10 percent or more of the company's total procurement (sales) amount in either of the 2 most recent fiscal years, the amounts bought from (sold to) each, the percentage of total procurement (sales) accounted for by each

A. Major Suppliers in the Last Two Calendar Years (Note 1)

Unit: NT$1,000

	2024				2025
Item	Company Name	Amount	Ratio of annual net purchases (%)	Relation with Issuer	Company Name	Amount	Ratio to net purchases for the current year as of the previous quarter (%)	Relation with Issuer
1	A Company	1,102,734	47.32	Business dealings	A Company	878,439	45.11	Business dealings
2	B Company	657,234	22.65	"	B Company	499,976	25.68	"
3	Others	943,027	30.03	"	Others	568,746	29.21	"
	Net purchase amount	2,702,995	100.00		Net purchase amount	1,947,161	100.00

Note 1: The names of suppliers who have purchased more than 10% of the total amount of goods in the last two years and the amounts and percentages of their purchases are listed, provided that the names of suppliers or the parties to whom the transactions are made are not disclosed due to contractual provisions. If the supplier's name is not a related party, the name may be used as the code.
2. Major Clients in the Last Two Calendar Years: No customer with more than 10% of total sales.

The information of employees employed for the 2 most recent fiscal years

April 20, 2026

FY		2024	2025	As of April 20, 2026(note)
Employees	Management Staff	62	62	61
	Direct labor	141	137	137
	Indirect Labor	240	237	236
	Total	443	436	434
Average age		45.32	45.59	45.62
Average seniority		14.43	14.34	14.08
Education	Doctoral Degree	0	0	0
	MA	8.78%	9.40%	9.45%
	BA	45.95%	46.33%	46.31%
	High School	33.33%	32.57%	32.49%
	Below high school	11.94%		11.70%

Note: The information for the current year ending on the date of publication of the annual report should be filled in.

Environmental Protection Expenditure:

(1) Losses and penalties suffered by the Company as a result of environmental pollution in the most recent year and up to the printing date of the annual report: A. 2025

Date	December 08, 2025
Order No.	30-114-120007
Violation	Paragraph 1, Article 7 of Water Pollution Control Act
Description	Upon sampling of the effluent from Discharge Point D01 of your enterprise by personnel from the Environmental Protection Bureau of this Government on September 10, 2025, the laboratory test results indicated a Suspended Solids (SS) level of 34.7 mg/L. This does not comply with the Effluent Standards (Suspended Solids limit: 30 mg/L).
Penalties	● Fine of NT$132,000 ● Environment lecture 2 hours.

(2) Estimated amount and countermeasures that may occur in the future: It is impossible to estimate, because the company strictly complies with the laws and regulations, and has no intention to deliberately exceed the laws and regulations. The factories have formulated an improvement plan to replace the FRP cover plate with iron plates to increase the tightness and strengthen inspections; set up testing equipment and add patrol countersigning forms in relevant places. In addition, compared with 2022, the company has significantly reduced fines case, and we are working towards a pollution-free workplace.

Labor Relations:

Since our company was founded, we have attached great importance to labor relations, and based on the management philosophy of "one employer, one employee" and "humane management". We have established a mechanism for consultation between employers and employees by participating in labor union meetings, management and supervisory meetings, and holding regular labor-management meetings; established a grievance system to smooth communication channels; and established various rules and regulations to establish the rights and obligations of both parties. The harmony between employers and employees can be maintained through mutual trust and understanding between management and employees.

(1) Employee benefit system

We provide universal health insurance, labor insurance, annual festival bonus, living allowance in remote areas, scholarships for employees' outstanding children, and employee dividends from company surplus and Labor's Day recognition activities. In addition, the Company has an employee welfare committee to coordinate the use of employee welfare funds and conduct various welfare activities, such as wedding and funeral subsidies, child education subsidies, medical subsidies for employees and their dependents, club activities, travel, and celebration activities are all included in these hope of welfare. In order to take care of both personal and family needs, and to enhance the physical and mental health of employees. In addition, the annual budget for each employee is approximately $10,000 to $12,000, and we also provide free health checkups for our employees. The company provides equal maternity and paternity (examination) leave and other leave entitlements for both men and women, which makes it easier for the organization to recruit and retain talented employees.

In 2024, according to the General Accounting Office of the Executive Yuan, there is a 15.8% difference between men's and women's salaries, but in our company, the ratio of men's to women's salaries is 1:1. In accordance with the Company's personnel management regulations, employees are selected and hired according to the initial appointment requirements for each grade, and are paid according to the standards set by the employee salary scale. The concept of gender workplace equality is truly implemented.

(2) Staff Development and Training:

A. Professional on-the-job training

Every year, the Company cooperates with the Plastic Industry Technology Development Center and the Industrial Association to systematically enhance the professional knowledge and skills of employees through various professional practical courses, and also adopts digital learning courses to provide a more flexible and convenient learning environment so that each employee can quickly perform his or her duties.

B. Management Training

In order to help employees reserve their strengths for future career development and to train management personnel, the Company has established the rules for the classification, promotion and transfer of employees, and holds training courses and purchases digital training series every year in accordance with these rules to systematically assist supervisors and futures supervisors to improve their management abilities in order to achieve the best management performance.

C. Encourage self-study

The company encourages employees to pursue self-learning outside of work to supplement in-house training programs. It has established various tuition assistance policies, such as the "Domestic Education Fee Assistance Plan for Employees," covering credit fees for undergraduate and graduate studies, and the "On-the-Job Training Subsidy Program for Mid- and Senior-Level Executives and Outstanding Employees," encouraging self-improvement and acquisition of relevant master's degrees. Additionally, new certification incentives have been introduced to motivate employees to obtain relevant certifications. This includes covering exam fees for the competency certification for plastic material application engineers hosted by the Plastics Industry Development Center, enhancing individual value.

D. Training Quality Standards

In 2011, 2014, 2016 and 2019, and 2020 our company passed the Training Quality Standard (TTQS) assessment by the Vocational Training Bureau of the Council of Labor Affairs, Executive Yuan, and the assessment result was Bronze.

E. In 2025, the Company organized various education and training courses, including Organizational Greenhouse Gas Inventory, the EU Carbon Border Adjustment Mechanism, Ethical Integrity and Prevention of Insider Trading, Efficient Application of Digital Tools, Plastic Product Knowledge, Leadership Training, and Occupational Safety and Environmental Protection.

Internal training			External training
Courses	People	People hours	Courses	People	People hours
126	995	3,081	236	278	1,804

(3) Code of conduct or ethics for employees:

Integrity, pragmatism, innovation and people-oriented are the management philosophy that we have insisted on since the beginning of our company, and it is also the highest standard that we expect all Taiyo employees to carry out their work tasks. In accordance with this management philosophy and relevant laws and regulations such as the Labor Standards Law, the Company has established work rules and various management systems to maintain employee discipline and order.

A. The "Work Rules for Employees" are established to regulate the hiring, firing, working hours, vacation, leave, rewards and punishments, performance appraisal, retirement, and benefits of employees.

B. Pre-employment training for new recruits includes basic education on ethics, environmental protection, occupational safety and health management.

C. We have signed a "Professional and Confidential Agreement", which stipulates that employees are obligated to maintain confidentiality of tangible and intangible business property information and prohibits them from infringing on the Company's interests.

(4) Work environment and employee safety protection measures

A. Regularly perform labor safety education training and health checks. The company conducts labor safety education and training for all new employees. In accordance with the relevant domestic laws and regulations, we regularly implement health checks and operating environment inspections for general employees, as well as annual education and training for special operators and health checks for special operators, in order to grasp the health status of special operators and ensure the safety and health of employees.

B. Regular fire training and emergency response training. In addition, the Company implements self-defense and fire-fighting team training, notification, evacuation drills, first aid training, fire safety training and fire-fighting training every year in accordance with the law to implement disaster prevention and ensure employees safety.

(5) Retirement System

There are two types of retirement for the Company's employees: voluntarily retirement and ordered retirement.

A. An employee of the Company may voluntarily retire under one of the following circumstances:

1.1. 15 years of service or aged 55 or older
1.2. 25 years of service
1.3. Aged 60

B. The Company may order the retirement of any employee of the Company under any of the following circumstances:

2.1. Aged 65
2.2. Mentally or physically incapacitated for work

The age specified in the first paragraph of the preceding paragraph may be adjusted by the Company for workers with special characteristics such as danger and physical strength, but not less than fifty-five years of age, upon request to the central competent authority.

In addition, in order to ensure the retirement life of our employees, the Company has established a retirement plan in full compliance with the Labor Standards Law and the Labor Pension Act. If the Labor Standards Law's pension plan is applicable, the Company will make monthly contributions at a rate of 2% of the total salary and deposit them in a special account at the Central Trust Bureau. The Company shall pay 6% of each employee's monthly salary to the individual pension account set up by the Labor Insurance Bureau, and the voluntary contribution rate shall be deducted from the employee's monthly salary to the individual pension account set up by the Labor Insurance Bureau, so that all eligible employees can receive their pensions in accordance with the law. The Company shall pay the employees' pensions within 30 days from the date of retirement.

Since the establishment of the Company in June 1965, 588 employees have retired under the Employees' Retirement Plan as of the end of 2025. As of December 31, 2025, the Company had deposited a total of NT$262,344,761 in the "Labor Retirement Fund" with the Bank of Taiwan.

(6) The Company's personnel involved in the transparency of financial information have obtained therelevant licenses specified by the competent authorities

Dept.	Name	Organizer	Course	Hours
finance	Cheng, Yu-Feng	ARDF	Recent Amendments to IFRS and Practical Application	3
		ARDF	Analysis of Recent Securities, Financial, and Tax Regulations and Professional Standards	1
		ARDF	Seminar on Practical Application of Recent Annual Profit-Seeking Enterprise Income Tax Returns	3
		ARDF	Analysis of Recent Securities, Financial, and Tax Regulations and Professional Standards	3
		ARDF	Analysis of Legal Tax Liability Related to "Climate Protection"	3
		ARDF	Analysis of Recent Securities, Financial, and Tax Regulations and Professional Standards	1
		ARDF	Analysis of Recent Corporate Governance Evaluation Indicators and Practices	3
		ARDF	Analysis of Recent Securities, Financial, and Tax Regulations and Professional Standards	1
Accounting	Cheng, Kuo-Nan	ARDF	Impact of Climate Change on Financial Statements	3
		ARDF	Analysis of Recent Securities, Financial, and Tax Regulations and Professional Standards	1
		ARDF	Insights into ESG Trends: Practical Analysis of Corporate Sustainability Implementation	3
		ARDF	Analysis of Recent Securities, Financial, and Tax Regulations and Professional Standards	1
		ARDF	IFRS Sustainability Disclosure Standards: Transformations in Sustainability, Climate Info, and Annual Reports	3
		ARDF	Analysis of Recent Securities, Financial, and Tax Regulations and Professional Standards	1
Audit office	Wu, Shang-Pang	Internal Audit Association	Legal Liability Analysis of Greenwashing and False Sustainability Reports	6
			Essential Insights: Impact of IFRS S1/S2 on Internal Control and Internal Audit Considerations	6
	Liao, Hung-Jen	Internal Audit Association	Generative AI and AI Data Protection Essentials for Internal Auditors	6
			Essential Insights: Impact of IFRS S1/S2 on Internal Control and Internal Audit Considerations	6

(2) For the most recent year and up to the date of the annual report, the Company suffered losses due to labor disputes: None

Cyber Security Management:

(1) Cyber security risk management framework, cyber security policies, concrete management programs, and investments in resources for cyber security management:

A. Cyber Security Risk Management Framework:

There are Information Security Section and Information Management Section established in the Information Department of the company. The Director of Information Department coordinates the formulation, implementation, and risk management of information security and protection related policies etc. the appropriate personnel will be allocated in these two sections according to business needs and relevant laws and regulations; besides the management specialist of information security, the Information Security Section will be allocated one director and specialist for information security of the company.

The information department of the company is the dedicated execution unit of cyber security risk management, The Director of Information Security Section regularly reports to the board of directors on the effectiveness of information security management, issues and directions related to information security. In order to ensure that internal operations that comply with information security-related standards, procedures, and regulations, the internal audit unit regularly conducts inspections in accordance with relevant regulations, reviews and recommends improvements to information security and information protection guidelines and policies, and implements the effectiveness of information security management measures.

The information department carries out specific management plans such as information security prevention and crisis management, and implements corresponding protection measures, from the construction of external firewalls and installs professional anti-virus systems on the internal personal computers and server hosts. Moreover, it keeps communication with the original factory, regularly update the virus code, update the system correction that the original factory will also use the email to remind the current events. In addition, it will continue to improve the internal anomaly detection and protection methods, in order to reduce cyber security risk.

In the current information system architecture of the company, the hardware part is built with stable Windows and Unix servers, while in the software part, the information system, software and system parameters and data are periodically backed up through disks, external hard drives and optical disks. It includes annual backup, quarterly backup, monthly backup and daily backup, and the remote storage mechanism will be used in the data after backup to strengthen the integrity and security. To prevent and reduce the disruption of information services caused by unwarned natural disasters and human negligence and shorten the time of system recovery, we will conduct regular exercises on post-disaster recovery measures. We also regularly rehearse post-disaster recovery measures to prevent and reduce the interruption of information services and shorten system recovery time caused by unpredictable natural disasters and human errors.

In order to restore the business operation of the information system smoothly and reduce losses in the event of damage, in addition to regularly rehearsing post-disaster recovery measures, we are evaluating the planning, design and implementation of hardware virtualization and software cloud-based services for information systems to improve the resource efficiency of software and hardware devices, and to build a higher-level security protection mechanism to reduce the risk of system damage.

According to recent analysis of security threats, the main source of security threats is external hacker attacks, followed by internal staff negligence and lack of security awareness. The root cause of these incidents is that the user does not pay attention to the content of the email, clicks the malicious phishing link and runs the unknown malicious program. Therefore, the protection of cyber security needs the comprehensive consensus of the company and the participation of all staff. Only by gradually developing employees' risk awareness and security cyber protection ability from the working habits and company culture can we truly strengthen the defense ability of cyber security.

B. Cyber Security Policies

In order to comply with Article 18 of the Cyber Security Management Act and the Cyber Security Guidelines for TWSE/TPEx-Listed Companies, the Company established a mechanism on the notification and response of cyber security incidents to be informed of and handle incidents promptly and effectively, it adds regulations Chapter 9 System Recovery Management Operationsny and Chapter 10 Cyber Security Operation on Regulations on the Information Operation Management. The outline is divided into responsibility attribution, incident notification window and emergency response team, notification procedure, response procedure, damage control mechanism, improvement mechanism after a cyber security incident, and information security protection and control measures. The most important purpose of adding the above clause is to have a standard procedure to follow when encountering a cyber security incident, and to restore normal business operations and reduce losses in the shortest possible time, and how to prevent the recurrence of incidents in the future.

C. Concrete Management Programs and Investments In Resources For Cyber Security Management; this company's cyber security protection and control measures are as follows:

a. Firewall server

In order to maintain the normal operation of internal and external network communication operations and to prevent hackers from invading the internal system, we set up network firewalls, independent logical domains (e.g. DMZ, internal or external network, etc.) for control, and use strict parameter settings to prevent external attacks to ensure that the company's internal system can be safely served and used.

b. Antivirus system

The company has signed a maintenance contract with the anti-virus manufacturer. All the computers in company are equipped with anti-virus software to prevent computer from getting virus and virus spreading. In case of sudden situation, the original factory will provide timely assistance to solve the problem.

c. Mail server

Through the server settings, limit the size of the mail and filter additional files, such as execution files, batch files, video files. This can reduce the hackers using the email attached files to allow users to click on attachments when exposed to subsequent attacks.

d. Spam server

At present, the company has installed a spam control mechanism to filter and block malicious or advertising letters and their attachments. All the letters are processed before being sent to the back-end

users to ensure the safety of the mail.

In recent years, hackers have begun to target manufacturers in the corporate supply chain, and leading companies in various fields have begun to take corresponding enhanced measures for email authentication. In order to enhance the security of emails and reduce the circulation of invalid or malicious emails, our company has implemented DMARC, DKIM, SPF and other verification measures on the mail server hosts since 2024 to ensure safe and secure receipt and sending of emails.

e. Spam server

f. Backup mechanism

The company's important server data are backed up regularly through storage media such as tape, CD-ROM and external hard disk, and the backup data is stored in a safe place in different places for special personnel to keep. In addition, we carry out a disaster recovery plan every year to restore the backup data to the test host to ensure the integrity of the data.

g. Regular propaganda

The company often uses emails, internal website, periodicals and bulletin boards educate all employees the importance of information security, how to deal with hackers when they encounter attack. We also continue to remind them to regularly back up their important files to prevent to ransomware attacks and how to resume normal work in the shortest possible time to reduce losses.

(2) In recent years, the competent authorities have required listed companies to pay attention to information security. The company's head of information security will obtain 2024 ISO27701LA(2019) Privacy Information Management System Lead Auditor Course, ISO27001LA (2022) information security management system lead auditor certification in 2023, and will evaluate whether to introduce ISO27001 information security system certification based on the policies of the competent authority or the needs of the company's business. Any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to significant cyber security incidents, the possible impacts therefrom, and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided.

In 2023, the Company has not experienced any major cyber attacks that would affect the Company's operations.

Important contracts: None

V. Review of Financial Conditions, Operating Results, and Risk Management

Analysis of Financial Status:

Comparative Analysis of Financial Position
Unit: NT$1,000

ITEM FY	2025	2024	Differences
			Amount	%
Current assets	1,974,726	2,312,164	(337,438)	(14.59)
Property, plant and equipment	3,175,303	3,271,020	(95,717)	(2.93)
Intangible assets	0	0	0	0
Other Assets	6,232,281	6,193,556	38,725	0.63
Total Assets	11,382,310	11,776,740	(394,430)	(3.35)
Current liabilities	1,045,267	1,124,195	(78,928)	(7.02)
Non-current liabilities	4,645,162	4,589,489	55,673	(1.21)
Total liabilities	5,690,429	5,713,684	(23,255)	(0.41)
Share Capital	2,272,283	2,272,283	0	0
Capital Fund	24,018	21,532	2,486	11.55
Retention Surplus	3,358,872	3,712,628	(353,756)	(9.53)
Other adjustments to shareholders' equity	36,708	56,613	(19,905)	(35.16)
Total shareholders' equity	5,691,881	6,063,056	(371,175)	(6.12)

The main reasons for the significant changes in assets, liabilities and equity in the last two years and their effects:
1. Retained Earnings: Decreased due to the net loss for the 2025 fiscal year.
2. Other adjustments to stockholders' equity: As a result of the recognition of the fair value valuation loss on equity in 2025.

2. Analysis of Operation Results:

(1) Comparative Analysis of Operating Results
Unit: NT$1,000

ITEM	2025	2024	Increase (decrease)	Variation %
Net Operating Income	3,594,886	4,683,170	(1,088,284)	(23.24)
Operating Costs	3,335,547	4,324,319	(988,772)	(22.87)
Gross Profit	259,339	358,851	(99,512)	(27.73)
Operating Expenses	392,356	451,905	(59,549)	(13.18)
Net operating income (loss)	(133,017)	(93,054)	(39,963)	(42.95)
Non-operating income and expenses	(21,484)	381,240	(402,724)	(105.64)
Pre-tax net income (loss)	(154,501)	288,186	(442,687)	(153.61)
Income tax expense	121,048	121,252	(204)	(0.17)
Gain or loss on discontinued operations	0	0	0	0
Net income (loss) for the period	(275,549)	166,934	(442,483)	(265.06)
Other comprehensive income (net of tax)	(11,766)	(209,670)	197,904	(94.39)
Total comprehensive income for the period	(287,315)	(42,736)	(244,579)	(572.30)

The main reasons for the significant changes in operating income, net operating income and net income before income tax for the last two years:

Reasons for changes of 20% or more:
① Decreases in operating income, operating costs, operating expenses and increase in operating net profit: This was primarily due to the overall industry downturn and weak market demand, which led to a decline in sales volume and a subsequent decrease in operating revenue. Although operating costs and operating expenses decreased accordingly with the reduction in business scale, the Company still recorded an operating loss for the fiscal year 2025 as sales fell short of expected levels.
② Net profit for the period: This was primarily due to a significant decrease in non-operating income recognized in fiscal year 2025 compared to the previous year, which resulted in an increase in net loss before tax.
③ Decrease in other comprehensive income: This was primarily due to the fact that the recognized loss on fair value valuation of equity instruments in fiscal year 2025 was less than that of the previous year.
The expected sales volume and its basis, the possible impact on the company's future financial operations, and the plan to deal with it:

The expected sales volume is evaluated based on historical sales performance over recent years, industry conditions, and market trends. For the fiscal year 2026, the revenue forecast has been further adjusted downward. This is due to the protracted Russia-Ukraine war and the global economic instability triggered by the conflict between the U.S. and Iran under President Trump's administration. Despite these challenges, the Company will cautiously respond to changes in the international economic landscape, supported by the government's ongoing economic stimulus programs.

Looking ahead, the Company will intensify research and development for new products, pivoting toward high-value-added offerings. We aim to secure raw material supply chains at their source to ensure a stable and uninterrupted flow, thereby achieving all production targets. In terms of sales, we will actively acquire new clients and explore new markets to boost revenue. It is imperative that we maintain a firm grasp of international financial and economic data to monitor price trends closely, increase market share, and enhance after-sales services. Beyond revenue growth, our future objectives include improving the operational performance and profitability of our re-invested companies, complying with government regulations, and steadfastly fulfilling our responsibilities toward sustainable development and environmental protection.

3. Analysis of Cash Flow

(1) Liquidity analysis for the last two years

ITEM	2025	2024	Increase (decrease) rate %
Cash Flow Ratio	23.39	22.09	5.89%
Cash Flow Fair Ratio	60.05	76.62	(21.63)% Note 1
Cash Reinvestment Ratio	1.11	1.10	0.91 %
Analysis of changes in the percentage of increase or decrease:
Note 1: The decrease in the Cash Flow Adequacy Ratio primarily reflects the relative insufficiency of cash flows generated from operating activities in fiscal year 2025. This led to a weakened capacity to fund the Company’s long-term investment expenditures and shareholder returns compared to the previous year, resulting in a decline in the ratio.

(2) Cash flow analysis for the coming year
Unit: NT$1,000

Beginning of the period Cash Balance	Year-round selfservice Net cash flow from activities	Annual Cash Inflow	Cash surplus (Deficiency) Amount	Remedies for cash shortage
				Investment Plan	Investment Plan
438,417	-414,903	-35,683	-12,169		400,000
Annual cash flow sex analysis:
The Consolidated Company estimates a net cash outflow from operating activities of NT$414,903 thousand for the coming year. This assessment is based on the expected operational conditions for fiscal year 2026 (Year 115). Considering that non-technology industries remain affected by factors such as insufficient global demand recovery momentum, overcapacity, and cost pressures, the overall economic outlook remains relatively conservative. Furthermore, influenced by international political and economic situations, tariff policies, and fluctuations in energy prices, the demand for working capital has increased, leading to a net cash outflow for the year. The estimated cash deficit at the end of the period is NT$12,169 thousand. To ensure sufficient working capital and financial flexibility, the Company plans to obtain bank loans of NT$400,000 thousand from financial institutions to support operational and funding requirements.

Major Capital Expenditure Items: None.
Investment Policy in Last Year, Main Causes for Profits or Losses, Improvement Plans and the Investment Plans for the Coming Year:

The Company will invest in the storage industry, investment companies and manufacturing industry, etc. The Company will invest in the future depending on the development status of the industry, and will hold the reinvestment business related to the industry for a long period of time. In addition, the company is currently actively developing environmentally friendly wood building material products, combining these products with European and American environmentally friendly materials, and through investing in new material companies, and leveraging our company's more than 50 years of manufacturing experience, we believe that these projects can bring considerable benefits to the company. growing up, and Land development and asset revitalization will be adjusted and developed in a timely manner depending on the general environment, in order to enrich the capital requirements for the future development and transformation of the Company's industry.

Analysis of Risk Management:

(1) The impact of interest rate, exchange rate and inflation on the Company's profit or loss and future measures

A. Interest rates: Global economic growth in 2026 exhibits a moderate recovery, though growth momentum remains uneven. Inflation in major economies has largely receded to a controllable range, prompting most central banks to pivot from previous tightening policies toward a gradual expansionary or neutral stance. The market generally expects interest rates to fluctuate within a range or decrease slowly. However, the trajectory of U.S. fiscal policy, geopolitical risks, and energy price volatility may still influence the pace of interest rate decisions. The Central Bank of Taiwan is expected to continue its cautious observation of domestic inflation and external economic conditions, maintaining a steady monetary policy.

The Company will continue to monitor domestic and international interest rate trends closely. We aim to effectively control funding costs and interest rate risks by periodically reviewing our financing structure, flexibly adjusting our borrowing portfolios, and strengthening

collaborative relationships with financial institutions.

B. Exchange rate: In 2026, the international foreign exchange market remains volatile, primarily influenced by diverging monetary policies across nations, global capital flows, and geopolitical conditions. The trend of the U.S. dollar is driven by U.S. economic performance and policy directions, while Asian currencies exhibit relative fluctuations aligned with the pace of regional economic recovery. Meanwhile, the New Taiwan Dollar (TWD) exchange rate is affected by the dual pull of Taiwan’s export momentum and international capital flows, and is expected to maintain a range-bound pattern.

As the Company’s operations involve international trade, exchange rate fluctuations have a certain impact on revenue and costs. We will continue to monitor the trends of major transaction currencies and adopt natural hedging strategies, appropriately adjusting the currencies and timing of payables and receivables to mitigate the impact of exchange rate volatility on the Company’s profit and loss.

C. Inflation: As global supply chains gradually normalize and major central banks adjust their policies, inflationary pressures in 2026 (Year 115) have significantly eased compared to the previous period. However, rising service costs, wage increases, and geopolitical risks may still cause inflation to exhibit a degree of "stickiness." Furthermore, energy prices and climate change factors could also lead to volatility in raw material prices. Currently, the Company has not experienced any significant impact on its profit and loss due to inflation. Looking forward, we will continue to monitor domestic and international inflationary developments. By strengthening cost control, improving operational efficiency, and timely adjusting product pricing strategies, we aim to mitigate the impact of rising raw material, energy, and labor costs on profitability and maintain overall financial stability.

(2) The policy of engaging in high-risk, highly leveraged investments, lending of funds to others, endorsement of guarantees and derivative transactions, the main reasons for profit or loss and future measures:

A. The Company does not engage in high-risk, highly leveraged investments.
B. The Company does not engage in hedging derivatives.
C. The Company's loan of funds to others and endorsement of guarantees are handled in accordance with the "Procedures for Handling Loan of Funds and Endorsement of Guarantees" established by the Company.

(3) Future research and development plans and estimated research and development costs:

A. Future R&D plan

a. Development of High-Softness PVC Medical Compounds: Consolidation of PVC medical compound product lines and verification of quality characteristics.
b. Development of PETG for Electronic Component Packaging Tubes: Property evaluation of PETG from various brands and trial production of functional compounds.

B. The company estimated that we will invest about 12.30 million the research and development expenses invested in 2026.

(4) Impact of significant domestic and foreign policy and legal changes on the Company's financial operations and measures taken in response: None
(5) Impact of technological changes and industry changes on the Company's financial operations and measures to address them: None
(6) Impact of corporate image change on corporate crisis management and response measures: None
(7) Expected benefits, possible risks and contingencies of the merger and acquisition: None
(8) Expected benefits, possible risks and contingency measures for plant expansion: None
(9) Risks associated with concentrations of imports or sales and measures to address them: None
(10) The impact, risk and response measures of a significant transfer or change in shareholding of directors, supervisors or substantial shareholders holding more than 10% of the shares of the Company: None
(11) Impact of the change in operating right on the Company, risks and response measures: None
(12) For litigation or non-litigation events, the Company and its directors, supervisors, general manager, persons in charge, substantial shareholders holding more than 10% of the shares, and affiliated companies should disclose the facts of the dispute, the amount of the subject matter, the date of commencement of the litigation, the principal parties involved in the litigation, and the price of these curities if the outcome of the litigation, non-litigation or administrative dispute is likely to have a significant impact on shareholders' equity or the price of the securities. Disposition as of the date of the annual report: None
(13) Other significant risks and responses: None

Other important matters: None

VI. Special Disclosure

Summary of Affiliated Companies:

(1) Consolidated Business Reports Covering Affiliated Enterprises:
For the abovementioned information, please visit the Public Information Observation Station, link to: https://mops.twse.com.tw/mops/#/web/home

Enter company code "1321", then navigate to the "Electronic Document Download" section and select the "Three Statements for Affiliated Enterprises" to perform the query.

(2) Consolidated Financial Statements Covering Affiliated Enterprises: None
(3) Reports on Affiliations: None.

Private Placement Securities in the Most Recent Years: None
Other necessary supplementary items: None
For the most recent year and as of the printing date of the annual report, events that have a significant impact on shareholders' equity or the price of securities as defined in Article 36, Paragraph 2 Subparagraph 2 of the Securities and Exchange Act: None

TANKIN-MEN
Chairperson

Prepared by
OCEAN PLASTICS CO., LTD.

AI assistant

OPC Annual Report 2025

51776_rns_2026-05-13_18ff7a2e-34b6-4040-b170-bc406f933014.pdf

OCEAN PLASTICS CO., LTD.

2025 Annual Report

I. Letter to Shareholders

1. Business performance in the Previous Year

2. Summary of the current year’s business plan:

3. Future company development strategy:

II. Corporate Governance Report

Information of Directors and Supervisors (2)

2. Diversity and Independence of the Board of Directors:

(1) Diversity of the Board:

5. Information Regarding the Company's Audit Fee:

Ownership of Shares in Affiliated Enterprises

Processing Dept.:

Synthetic Leather Dept.:

Building Materials Dept.:

Raw Materials Dept.:

Plastic cloth:

Competitive Advantages:

Synthetic leather:

Plastic powder:

Plastic Pellet:

Plastic Fabric:

Conclusion

Synthetic Leather

Manufacturing Process

Building Materials Division

Manufacturing Process

Plastic Raw Materials

PVC Resin (Powder):

Manufacturing Process (Resin):

2. Analysis of Operation Results:

3. Analysis of Cash Flow

AI assistant

OPC — Annual Report 2025

51776_rns_2026-05-13_18ff7a2e-34b6-4040-b170-bc406f933014.pdf

OCEAN PLASTICS CO., LTD.

2025 Annual Report

I. Letter to Shareholders

1. Business performance in the Previous Year

2. Summary of the current year’s business plan:

3. Future company development strategy:

II. Corporate Governance Report

Information of Directors and Supervisors (2)

2. Diversity and Independence of the Board of Directors:

(1) Diversity of the Board:

5. Information Regarding the Company's Audit Fee:

Ownership of Shares in Affiliated Enterprises

Processing Dept.:

Synthetic Leather Dept.:

Building Materials Dept.:

Raw Materials Dept.:

Plastic cloth:

Competitive Advantages:

Synthetic leather:

Plastic powder:

Plastic Pellet:

Plastic Fabric:

Conclusion

Synthetic Leather

Manufacturing Process

Building Materials Division

Manufacturing Process

Plastic Raw Materials

PVC Resin (Powder):

Manufacturing Process (Resin):

2. Analysis of Operation Results:

3. Analysis of Cash Flow

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OPC Annual Report 2025