Stock Code: 8048

RUBY TECH

RUBY TECH CORPORATION

2025 Annual Report

Annual Report is available at

Company Website: https://www.rubytech.com.tw

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

Printed on May 8, 2026

This is an English translation of the 2025 Annual Report (the "Annual Report") of Ruby Tech Co., Ltd. (the "Company"). This translation is for reference only. The Company hereby disclaims any and all liabilities arising from or in connection with this translation. The Chinese text of the Annual Report shall govern in the event of any discrepancies in the interpretation of the subject matter stated herein.

The name, title, telephone number, and e-mail of the Company's spokesperson and acting spokesperson:

	Spokesperson	Deputy Spokesperson
Name	Young, Yu-Che	Chen, Yun-Chen
Title	President	Assistant Vice President of Administration Div.
Contact Phone Number	(02)2785-3961	(02)2785-3961
Email Address	[email protected]	[email protected]

Addresses and Phone Numbers of Headquarters, Branches, Factories:

	Address	Phone Number
Headquarters	3F, No. 1, Lane 50, Section 3, Nangang Road, Taipei, Taiwan	(02)2785-3961
Branches	None	None
Factories	5F, No. 23, Lane 50, Section 3, Nangang Road, Taipei, Taiwan	(02)2785-3961

Name, Address, Website and Phone Number of Stock Transfer Agent:

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

Address: B1, No. 67, Section 2, Dunhua S. Road, Da'an Dist., Taipei, Taiwan

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

Phone Number: (02)2586-5859

Name of CPA, Address, Website and Phone Number for the Latest Annual Financial Statements:

CPA Name: Lin, Shu-Ju, Chang, Chun-I

Accounting Firm Name: Deloitte & Touche

Address: 20F, No. 100, Songren Road, Xinyi District, Taipei, Taiwan

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

Phone Number: (02)2725-9988

Name of Overseas Stock Exchange and Method for Accessing Information on Overseas Negotiable Securities: None.
Company Website: https://www.rubytech.com.tw

Letter to Shareholders ... 1
Corporate Governance Report ... 6
(1) Information on Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, Heads of Departments and Branches ... 6
(2) Remuneration to Directors, Supervisors, President, and Vice Presidents in Recent Years ... 21
(3) Implementation of Corporate Governance ... 26
(4) Information on Professional Fees of CPA ... 118
(5) Information on Replacement of CPA ... 118
(6) The Chairperson, President, or Financial or Accounting Manager of the Company Who Had Worked for the certifying Accounting Firm or Its Affiliated Enterprises in the Past Year ... 118
(7) Share transfer by directors, supervisors, managers and shareholders holding more than 10% interests and changes to share pledging by them in the past year and up to the date of report ... 119
(8) Information on Relationship between any of the Top ten Shareholders (Related Party, Spouse, or Kinship within the Second Degree) ... 120
(9) The Number of Shares of the same invested Company held by the Company, the Company's Directors, Supervisors, and Executive Officers, and the Businesses controlled directly or indirectly by the Company, and the Consolidated Shareholding Ratio ... 122
Capital Review ... 123
(1) Capital and Shares ... 123
(2) Issuance of Corporate Bonds ... 129
(3) Issuance of Preferred Shares ... 129
(4) Issuance of Global Depositary Receipts ... 129
(5) Issuance of Employee Stock Options and New Restricted Employee Shares ... 130
(6) Mergers, Acquisitions or Issuance of New Shares for Acquisition of Shares of other Companies ... 132
(7) Implementation Status of Capital Utilization Plans ... 132
Business Overview ... 133
(1) Business Content ... 133
(2) Market, Production and Sales Overview ... 142
(3) Information on Employees in Most Recent Two Fiscal Years and as of the Date Publication of the Annual Report ... 148
(4) Information on Environmental Protection Expenditure ... 148
(5) Labor Relations ... 149
(6) Cyber Security Management ... 156
(7) Material Contracts ... 157

Review and Analysis of the Financial Status and Financial Performance, and Risk Management ... 158
(1) Financial Position ... 158
(2) Financial Performance ... 159
(3) Cash Flows ... 160
(4) Impact of Major Capital Expenditures on Financial and Business Status in the Most Recent Year ... 160
(5) Investment Policy in the Most Recent Fiscal Year, Main Reasons for Profits or Losses, Improvement Plan, and Investment Plan for the Coming Year ... 160
(6) Risk Analysis and Assessment ... 161
(7) Other Important Matters ... 165
Special Items ... 169
(1) Profiles of Affiliated Enterprises ... 169
(2) Private Placement of Securities in the Most Recent Fiscal Year and as of the Printing Date of the Annual Report ... 169
(3) Other matters that require additional description ... 169
Matters, if any, that may affect Shareholders' Equity or Securities Price as defined in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act in the Most Recent Year and as of the Printing Date of the Annual Report ... 170

1. Letter to Shareholders

1. Business Report for 2025

(1) Business Plan Implementation and Results

In 2025, the Company’s product development strategy continued to focus on building a comprehensive product line and technology service platform. It successfully developed and launched a series of 22 products, including carrier-grade network management switches, 802.3bt PoE++ L3 managed switches, Multi-Gig/10G/25G/40G/100G stackable advanced L3 managed switches, Low Earth Orbit (LEO) satellite communication server, and all 10G/25G/40G fiber optic switches. To consider product competitiveness, component commonality and cost-effectiveness were considered in the early design stage. The newly developed products have significantly lower costs compared to the previous generation, making the Company’s products more price-competitive in the market. In terms of business, in addition to continuously developing ODM customers and telecom operators in Europe and America, the Company has also begun to develop industrial and various vertical application customer groups. With a relatively complete product line and the continuous launch of more competitive new products, along with the introduction of precision marketing, the Company has made significant progress in acquiring new customers. The consolidated annual revenue was NT$ 1,010,651 thousand, and the consolidated net profit after tax was NT$ 153,857 thousand.

Sales

Switch revenue increased by 1% compared to the previous year, and sales volume increased by 7%, as major customers have gradually depleted their inventory and demand for large projects led to a recovery in new orders. Fiber optic converter revenue and sales volume decreased by 16% and 25%, respectively, due to decreased demand for large projects from some customers. Fiber optic interface card revenue and sales volume decreased by 36% and 48%, respectively, due to decreased demand from government projects from customers in the United States. With the introduction of precision marketing, the Company has made significant progress in acquiring new customers. Additionally, by thoroughly analyzing the product and service needs of existing customers, the Company improved its service quality and rapidly expanded the quality of existing orders.

Research and Development

The Company’s R&D focus was on developing a competitive and comprehensive product line and technology service platform to provide customers with a one-stop shopping experience and increase customer stickiness and loyalty. A total of 22 products were developed and successfully entered trial/mass production:

(1) 8-P PoE(15W)+2-P 1G RJ45/SFP L3 advanced network managed switch
(2) Industrial 6-P PoE++(90W) 1G RJ45+2-P PoE++(90W) 2.5G RJ45 + 2-P 10G SFP+ L3 advanced network managed switch
(3) 24-P PoE+(30W) 2.5G RJ45 + 24-P PoE++(90W) 2.5G RJ45 + 4-P 10GSFP + 2-P 40GQSFP+ L3 Ultra High-Speed advanced network managed switch

(4) 24-P PoE+(30W) 1G RJ45+2-P 1G RJ45/SFP intelligent network managed switch
(5) 8-P 1G RJ45+2-P 1G RJ45/SFP network managed switch
(6) 8-P PoE(15W) 1G RJ45+2-P 1G RJ45/SFP network managed switch
(7) 24-P PoE(15W) 1G RJ45 + 2-P 1G RJ45/SFP network managed switch
(8) 24-P 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(9) 24-P PoE+(30W) 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(10) 24-P 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(11) 20-P 1G SFP + 4-Port 1G RJ45/SFP + 4-P 10G SFP+ L3 advanced network managed fiber switch
(12) 12-P PoE++(90W) 1G RJ45 + 12-P PoE++(90W) 2.5G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(13) 16-P PoE(15W) 1G RJ45 + 2-P 1G RJ45/SFP intelligent network managed switch
(14) 20-P 1G SFP + 4-P 1G RJ45/SFP + 4-P 10G SFP+ L3 advanced network managed fiber switch
(15) 12-P 10G SFP+ + 2-P 25G SFP28 L3 Ultra High-Speed network managed fiber switch
(16) 24-P 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(17) 48-P PoE+(30W) 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(18) Industrial 2-P PoE++(90W) 1G RJ45 +2-P 1G SFP outdoor network managed switch
(19) 8-P PoE(30W) 1G RJ45 basic managed switch
(20) Industrial 8-P PoE+ (30W) 1G RJ45 + 2-P 1G SFP L3 advanced network managed fiber switch
(21) 20-P 1G SFP + 4-P 1G RJ45/SFP + 4-P 10G SFP+ L3 advanced network managed fiber switch
(22) 24-P 1G RJ45 + 2-P 1G SFP basic managed switch

Manufacturing:

To emphasize cost control of components, a cost reduction project team was established to regularly review and implement various cost reduction proposals. In order to meet customers' demand for stable delivery dates and cost competitiveness, the Company continues to implement ISO9001, strictly controlling product quality and delivery dates; and strengthening the production and sales coordination mechanism and planned material/production functions, continuously optimizing order management and material management.

Management:

Continuously reviewing the efficiency and effectiveness of product development, and implementing personnel performance management accordingly; also continue to strengthen accounting, gross margin analysis, product, customer and salesperson management. The Company has officially obtained ISO27001 and ISO27034 information security certifications, and has also conducted the greenhouse gas inventory for individual entities in accordance with ISO 14064-1. These efforts provide the Company with more opportunities to be certified and adopted by medium and large customers, further strengthening the Company’s competitiveness.

(2) Budget Execution

The Company was not required to publicly disclose financial forecasts for 2025.

(3) Analysis of Financial Revenue and Expenditure and Profitability

Unit: NT$ thousand

Year Analysis Item	2025 Consolidated		2024 Consolidated		Annual Increase (Decrease) Rate
	Amount	%	Amount	%	%
Operating revenue	$ 1,010,651	100.00	$ 1,018,413	100.00	(0.76)
Operating gross profit	350,357	34.67	320,055	31.43	9.47
Net operating profit	162,541	16.08	139,128	13.66	16.83
Profit before tax	179,970	17.81	168,314	16.53	6.93
Net profit of the year	153,857	15.22	136,402	13.39	12.80
Total comprehensive income (loss)	142,919	14.14	111,003	10.90	28.75
Earnings per Share (NT$)	2.67		2.36

(4) Research & Development Status

The 2025 product R&D strategy is based on the series of products developed in 2024, with added software and hardware functionalities to extend the design upwards into project-specific network management switches, while also enabling the design of lower-cost switches by scaling down. Additionally, to meet the demands of the higher growth potential 5G infrastructure application market, the industrial-grade smart application market, and the satellite communication applications market, we are developing various switches with leading market specifications to build a comprehensive and competitive product line that allows customers to make one-time purchases and choose from a wide range of options, thereby increasing customer stickiness and loyalty. The related application platforms for network products have also been officially launched and are operational, with new features

being developed in response to customer needs, enabling customers to address rapidly changing market demands and enhancing product competitiveness. All products developed this year have been trial/mass-produced and shipped on schedule.

2. Outline of 2026 Business Plan

(1) Business Strategy

a. Marketing Strategy

1) Strengthen e-Marketing, exhibition participation and direct client visits to develop potential customers, aiming to further improve market share.
2) Proactively develop next generation network products in line with market trends and customers' product plans to consolidate and expand existing customers' business.
3) Leverage existing customers' marketing networks to promote new product lines and expand business scale.
4) Establish a customer issue tracking system for customers to check issue resolution status anytime to enhance customer satisfaction.

b. R&D Strategy

The Company's product R&D directions are described as follows:

1) Switches

In response to the market's demand for higher bandwidth, applications, and energy-saving carbon reduction requirements, our company has built upon products developed in previous years. We've enhanced software and hardware functions to evolve the design into a project-based network management switch. Simultaneously, we can also design a more cost-effective Web Smart switch. Furthermore, in anticipation of the growing 5G infrastructure application market and the industrial-grade smart application market, we have developed a range of switches, including 802.3bt PoE++, high-speed 2.5G/5G/10G/25G/40G/100G, L3, and SDN-grade. This expansion aims to establish a comprehensive and competitive product line, offering customers a one-stop shopping experience and increasing customer stickiness. In addition, cloud application services will be developed in response to customers' sales and technical support needs to further increase the competitiveness of the Company's products.

2) Fiber Optic Network Products

Focus models among the various developed fiber optic converters and fiber NICs will be selected for design review to develop lower cost products to enhance market competitiveness and further improve gross profit margin.

3) Industrial Network Products

Continue to develop basic -20°C~60°C industrial network products such as Web-Smart managed 8/24-port Gigabit PoE switches and L3 managed 2-port 10G SFP++ 8/24-port 10/100/1000 PoE/Carrier Ethernet switches; develop advanced -40°C~+75°C 8-port 10/100/1000/10G PoE switches, 8/24-port 10/100/1000 switches and L3 managed 2-port 10G SFP++ 8/24-port 10/100/1000 switches.

c. Financial Strategy

1) Increase foreign currency payment arrangements to achieve natural hedging functions and strengthen foreign exchange management to reduce exchange losses.

2) Strengthen management accounting to increase revenue and reduce losses.

d. Cost Strategy

1) Implement Design for Cost (DFC) principles and conduct factual cost reviews during product development phase.

2) Establish a Cost Reduction Team (CRT) with targets set for regular weekly reviews of cost reduction matters.

3) Phase out non-competitive product models.

(2) Expected Sales Volume and its Basis

Continuous efforts will be made in new product innovation and development and cloud-based customer service platforms to assist existing customers in enhancing their market competitiveness, enabling the Company and customers to grow in tandem in revenue and profitability.

In addition, innovation and development of products related to Internet of Things (IoT) applications is also one of the R&D focuses of the Company. The newly launched next-generation industrial switches have developed a networked device management platform in response to IoT application needs, providing customers with convenient functions to manage status of various heterogeneous devices in IoT applications, and offering differentiated value to enhance market competitiveness.

(3) Important Production and Marketing Policies

a. Implement comprehensive quality management through ISO9001.

b. Plan production, strengthen procurement, reduce production costs, and shorten delivery time.

c. Enhance ERP functions, strengthen sales/inventory management, and increase inventory turnover rate.

d. Implement product manager system, strengthen R&D progress schedule control, shorten new product mass production launch schedule; and strengthen product marketing, product management and production/sales coordination.

Future Company Development Strategies and Impacts of External Competitive Environment, Regulatory Environment and General Operating Environment

As the Company's product strategy focuses on medium-high end products with technical entry barriers and less competition, a certain level of gross margin can still be maintained, and the Company is less impacted by market price competition. The Company's products already fully comply with RoHS, PFOS and REACH regulations in response to the EU's environmental directive requirements.

2. Corporate Governance Report

Information on Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, Heads of Departments and Branches

(1) Information on Directors

a. Information on Directors

As of April 30, 2026

Title	Nationality or Place of registration	Name	Gender and Age	Election (Appointment)	Term	Date of First Election	Shares Held at Time of Election		Shares Held Currently		Spouse and Underage Children No. of Shares Held		No. of Shares Held in Others' Names		Major Education & Experience	Concurrent Positions in the Company and Other Companies	Relatives Within Second Degree of Kinship Who Are Also Company Managers or Directors			Remarks
							No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held			Title	Name	Relationship
Chairman	Taiwan	Lin, Kuan-Ming	Male 71-80 years old	2024.06.19	3	1997.05.12	1,477,858	2.63%	1,522,193	2.64%	818,714	1.42%	-	-	Bachelor's in Electrical Engineering, National Taiwan University President of Premier Venture Capital Corp. Chairman of System General Technology Assistant Vice President of MiTAC Synnex Group	Chief Executive Officer of Ruby Tech Corporation Chairman of Grand Impact Technology Limited Chairman of Ruby Tech (Beijing) Co., Ltd. Chairman and President of Premier Venture Capital Corp. Chairman of Chief Investment Corp. Chairman of Premier Capital Management Corp. Director of Hui Yu Investment Corp. Direct and President of Chief Venture Capital Corp. (Legal Representative of Hui Yu Investment) Director of Dexin Corp. Director of Lung Hwa Electronics Co., Ltd. (Legal Representative of Shin Ching Investment) Director of Taivex Therapeutics Corporation (Legal Representative of Tsou Seen Chemical) Director of China Petrochemical Development Corp. (Legal Representative of C.P. Leasing Co., Ltd.) Director of Deltamac (Taiwan) Co., Ltd. (Legal Representative of CHC International Investment Corp.) Independent Director and member of Remuneration Committee of Getac Holdings Corporation	Director	Lin, Ling-Yu	Spouse	Note 1

Title	Nationality or Place of registration	Name	Gender and Age	Election (Appointment)	Firm	Date of First Election	Shares Held at Time of Election		Shares Held Currently		Spouse and Underage Children No. of Shares Held		No. of Shares Held in Others' Names		Relatives Within Second Degree of Kinship Who Are Also Company Managers or Directors
							No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	Title	Name	Relationship
Director	Taiwan	Hui Yu Investment Co., Ltd.
Representative: Lin, Ling-Yu	Female
61~70 years old	2024.06.19	3	2024.06.19	2,464,386	4.39%	2,538,317	4.40%	-	-	-	-	Bachelor’s in Animal Science, National Taiwan University
Vice President of Finance Div., Premier Capital Management Corp.	Chairman of Hui Yu Investment Corp.
Supervisor at Chief Investment Corp.
Supervisor of Shoe Chia Investment Corp.
Supervisor of Chief Venture Capital Corp.
Supervisor of Premier Venture Capital Corp. (Legal Representative of Hui Yu Investment)	Chairman	Lin, Kuan-Ming	Spouse	Note 2
Director	Taiwan	Fu Ho Investment Co., Ltd.
Representative: Chiu, Chi-Hsin	Male
61~70 years old	2024.06.19	3	2018.06.12	405,882	0.80%	464,408	0.80%	-	-	-	-	MBA, Columbia University
President of Premier Capital Management Corp.
Deputy Chairman and CFO of Hocheng Corp.	Supervisor of Fu Ho Investment Co., Ltd.
Supervisor of Holung Investment Co., Ltd.
Director of New Swift Enterprises Co., Ltd.
Director of Hocheng Corp. (Legal Representative of Fu Ho Investment Co., Ltd.)
Director of Taiwan Printed Circuit Board Techvest Co., Ltd. (Legal Representative of Hocheng)
Director of Yuhuang Co., Ltd. (Legal Representative of New Swift Enterprises)
Director of Dongqi Co., Ltd. (Legal Representative of New Swift Enterprises)
Supervisor of Bearnimind Corporation
Supervisor of Hoceng Service Co., Ltd.
Supervisor of Lianan Wellness Management Co., Limited
Supervisor of Bae Long Interior Crafts Co., Ltd. (Legal Representative of Hocheng)	None	None	None	-
Director	Taiwan	Tung, Chin-Chuan	Male
71~80 years old	2024.06.19	3	2010.06.14	70,812	0.13%	72,936	0.13%	3,054	0.01%	-	-	Master’s in Management, National Yang Ming Chiao Tung University
Xuhang Investment Co., Ltd.
President of ChainTech Co., Ltd.
Vice President of Behavior Tech Corp.
Sales Manager of HP Taiwan
Dexin Corp. Supervisor	Independent Director, Audit Committee Member, and Remuneration Committee Member of Lung Hwa Electronics Co., Ltd.
Independent Director, Audit Committee Member, and Remuneration Committee Member of Changing Information Technology Inc.	None	None	None	Note3
Director	Taiwan	Young, Yu-Chu	Male
61~70 years old	2024.06.19	3	2018.06.12	453,037	0.81%	466,628	0.81%	24,859	0.04%	-	-	Master's in Electrical and Computer Engineering, University of Michigan
Director and President of Vodiel Communications Inc.
Business associate of Accton Technology Corp.	President of Ruby Tech Corp.	None	None	None	-

Title	Nationality or Place of registration	Name	Gender and Age	Election (Appointment) Date	Firm	Date of First Election	Shares Held at Time of Election		Shares Held Currently		Spouse and Underage Children No. of Shares Held		No. of Shares Held in Others' Names		Major Education & Experience	Relatives Within Second Degree of Kinship Who Are Also Company Managers or Directors
							No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held		Title	Name	Relationship
Independent Director	Taiwan	Huang, Chin-Tan	Male 71–80 years old	2024.06.19	3	2007.06.25	-	-	-	-	-	-	-	-	PhD. In Finance
University of Mississippi
Executive Secretary of Ministry of Economic Affairs
Adjunct Associate Professor of Finance, National Chengchi University
Adjunct Associate Professor of Business Administration, Ming Chuan University
Associated Professor, Department of Banking and Finance at Chinese Culture University
TWSE Review Committee Member
TPEX Review Committee Member
Director of Taiwan Business Bank
Independent Director of Billion Electric Co., Ltd.
Independent Director of SCI Pharmtech Inc.
President of the Agricultural Credit Guarantee Fund
Independent Director of Taishin Securities Co., Ltd.
Independent Director, Audit Committee Member, Remuneration Committee Member of AFASTOR Corp.	Adjunct Associate Professor of Business Administration, Ming Chuan University
Director at Harbinger VIII Venture Capital Corp. (Legal Representative of Mega International Commercial Bank)
Director of Appworks Fund II Co., Ltd. (Legal Representative of Mega International Commercial Bank)
Independent Director, Audit Committee Member, and Remuneration Committee Member of Ancang Construction Co., Ltd.
Independent Director, Audit Committee Member, Remuneration Committee Member, and Sustainability Committee Member of Formosa Advanced Technologies Co., Ltd.	None	None	None	-
Independent Direct	Taiwan	Wu, Yung-Sheng	Male 61–70 years old	2024.06.19	3	2007.06.25	-	-	-	-	-	-	-	-	PhD. In Law, Chengchi University
Master's in Law, University of Chicago Dean and Associate Professor of the College of Law, Ming Chuan University
Academic advisor and adjunct professor of the Department of Finance, Ming Chuan University
Assistant Professor of the Institute of Financial Management, National Central University
Review Committee Member of TWSE	Commercial Mediation Commissioner of the Intellectual Property and Commercial Court
Executive Member of the Board Performance Evaluation Committee, Taiwan Corporate Governance Association
CITIC Institute of Financial Management
Independent Director and Audit Committee Member, and Remuneration Committee Member of Capital Futures Corp.
Independent Director and Audit Committee Member, and Remuneration Committee Member of Dexin Corp.	None	None	None	Note 4

Title	Nationality or Place of registration	Name	Gender and Age	Election (Appointment)	Firm	Date of First Election	Shares Held at Time of Election		Shares Held Currently		Spouse and Underage Children No. of Shares Held		No. of Shares Held in Others’ Names		Major Education & Experience	Concurrent Positions in the Company and Other Companies	Relatives Within Second Degree of Kinship Who Are Also Company Managers or Directors			Remarks
							No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	No. of Shares	Percentage of Shares Held	Percentage of Shares Held	Title			Name	Relationship
															Review Committee Member of TPEs Director of TPEs Taiwan Futures Exchange Supervisor Taiwan Futures Exchange Convener of the Trading and Settlement Committees Advisory Committee Member, Competition Policy Information and Research Center, Fair Trade Commission, Executive Yuan Director of FundRich Securities Co.
Independent Director	Taiwan	Wang, Chi-Chiao	Male 71~80 years old	2024.06.19	3	2021.08.10	26,617	0.05%	27,415	0.05%	-	-	-	-	Master’s from the Institute Electrical Engineering, National Taiwan University Vice President of Kiwi Microsystem, Inc. RD Consultant at Worldwide Logistics Corp. RD Consultant at Samuri Spirit , Inc.	None	None	None	None	-
Independent Director	Taiwan	Lin, Hsin-Piao	Male 61~70 years old	2024.06.19	3	2024.06.19	-	-	-	-	-	-	-	-	Ph.D. in Electrical Engineering from the University of Texas at Austin Professor of the Department of Electronic Engineering and Director of the Institute of Space Systems Engineering, National Taipei University of Technology	Professor of the Department of Electronic Engineering and Director of the Institute of Space Systems Engineering, National Taipei University of Technology Independent Director, Audit Committee Member, and Remuneration Committee Member at Appro Photoelectron Inc. Director at Taiwan Aerospace Corporation (Legal Representative of National Development Fund, Executive Yuan)	None	None	None

Note :
1. Chairman Lin, Kuan-Ming also serves as CEO due to his electrical engineering background from National Taiwan University and possession of the business experience required for operations, coordinating various decisions, participating in routine management meetings, proactively coordinating and integrating internal and external resources for major operational meetings.
2. Director Lin, Ling-Yu was first elected as Supervisor at the May 12, 1997 shareholder meeting, and first elected as Director at the August 10, 2021 shareholder meeting when there was a general re-election of the Board of Directors. She was first elected as Director (Legal Representative of Hui Yu Investment) at the June 19, 2024 shareholder meeting when there was a general re-election of the Board of Directors.
3. Director Tung, Chin-Chuan was first elected as Supervisor at the June 14, 2010 shareholder meeting, and first elected as Director at the August 10, 2021 shareholder meeting when there was a general re-election of the Board of Directors.
4. Independent Director Wu, Yung-Sheng was first elected with independent functions as Supervisor at the June 25, 2007 shareholder meeting, and first elected as Independent Director at the June 9, 2015 shareholder meeting when there was a general re-election of Supervisors and the Board of Directors.
5. Former Director Wang, Wkang-Hsiang, whose original term was scheduled from June 19, 2024 to June 18, 2027, resigned from his position effective November 10, 2025.

10 -

b. Major Shareholders of the Institutional Shareholders
As of April 30, 2026

Corporate Shareholder Name	Major Shareholders of Corporate Shareholders
Hui Yu Investment Co., Ltd.	Lin Chia-Hui (38.52%), Lin Ling-Yu (23.20%), Lin Hsin-Hui (20.00%), Lin Kun-Ming (13.48%), Lin Yi-Ching (4.80%).
Fu Ho Investment Co., Ltd	Chiu, Chi-Hsin (82.56%), Chu, Xin-Xin (5.56%), Chiu, Yu-Fen (3.80%), Lu, Po-Ching (3.73%), Chiu, Wei-Chieh (2.67%), Chiu, Yu-Ping (1.62%), Chiu Chen, Huei-Mei (0.06%).

c. Disclosure on Professional Qualifications of Directors and Independence Information of Independent Directors:

| Criteria
Name | Professional Qualifications and Experience | Status of Independence | Concurrently Serving as Other Public Companies' Independent Directors |
| --- | --- | --- | --- |
| Chairman
Lin, Kun-Ming | (1) Chairman Graduated from National Taiwan University Department of Electrical Engineering currently serves as Chairman and CEO of the Company and Chairman and Director of several companies; possesses industrial, technology professional background and skills, and over 5 years of work experience required for commercial and corporate operations.
(2) None of the circumstances under Article 30 of the Company Act exists. | Please refer to page 17 for the explanation of the Board's independence. | 1 |
| Director
Hui Yu
Investment Co., Ltd.
Representative:
Lin, Ling-Yu | (1) Graduated from the Department of Animal Science at National Taiwan University. Currently serves as chairman, director, and supervisor for multiple companies. Possesses industry and finance professional background and expertise, with over 5 years of work experience required for business, finance and company operations.
(2) None of the circumstances under Article 30 of the Company Act exists. | Please refer to page 17 for the explanation of the Board's independence. | None |
| Director
Fu Ho
Investment Co., Ltd.
Representative:
Chiu, Chi-Hsin | (1) Graduated with an MBA from Columbia University. Currently serves as director, supervisor, and legal entity director for multiple companies. Formerly served as Vice Chairman and CFO of Ho Cheng Construction Co. Possesses accounting, industry, finance professional background and expertise, with over 5 years of work experience required for business, finance, accounting and company operations.
(2) None of the circumstances under Article 30 of the Company Act exists. | Please refer to page 17 for the explanation of the Board's independence. | None |
| Director
Tung, Chin-Chuan | (1) Graduated from the Institute of Management Science at National Chiao Tung University. Currently serves as independent director, Audit Committee member, and Remuneration Committee member of Lung Hwa Electronics Co., Ltd.; Independent Director, Audit Committee member, and Remuneration Committee member of Changing Information Technology Inc. Possesses professional background and expertise in industry, marketing, and technology, with | Please refer to page 17 for the explanation of the Board's independence. | 2 |

11 -

| Criteria
Name | Professional Qualifications and Experience | Status of Independence | Concurrently Serving as Other Public Companies’ Independent Directors |
| --- | --- | --- | --- |
| | more than the 5 years of work experience required for business and company operations.
(2) None of the circumstances under Article 30 of the Company Act exists. | | |
| Director
Young, Yu-Che | (1) Graduated from the University of Michigan with a master's degree in electrical and computer engineering. Currently serves as General Manager of the Company. Possesses industry, marketing, and technology professional background and expertise, with over 5 years of work experience required for business and company operations.
(2) None of the circumstances under Article 30 of the Company Act exists. | Please refer to page 17 for the explanation of the Board's independence. | None |
| Independent director:
Huang, Chin-Tan | (1) Graduated with a PhD in Finance from the University of Mississippi. Currently serves as Independent Director, Audit Committee member, and Remuneration Committee member of the Company; adjunct associate professor in the business administration department at Ming Chuan University; Independent Director, Audit Committee member, and Remuneration Committee member of Ancheng Construction Co., Ltd.; Independent Director, Audit Committee member, and Remuneration Committee member and Sustainability Committee member of Formosa Advanced Technologies Co., Ltd.; legal entity director for multiple companies. Possesses accounting and finance professional background and expertise, with over 5 years of work experience as a lecturer or above in finance or accounting-related departments of public or private colleges and universities.
(2) None of the circumstances under Article 30 of the Company Act exists. | (1) Neither self, spouse, nor relatives within the second degree of kinship serve as directors, supervisors, or employees of the Company or its affiliates.
(2) Neither self, spouse, nor relatives within the second degree of kinship (whether in own name or that of another person) hold any shares in the Company.
(3) Does not serve as director, supervisor, or employee of any company that has a specific relationship with the Company.
(4) Has not provided business, legal, financial, accounting or any other kind of service to the Company or its affiliates in the last 2 years and obtained remuneration. | 2 |
| Independent director:
Wu, Yung-Sheng | (1) Graduated with a PhD in Law from National Chengchi University and is a PhD candidate at the University of Chicago Law School. Currently serves as Independent Director, Audit Committee member, and Remuneration Committee member of the Company; adjunct professor at the Institute of Financial and Economic Law, CTBC business school; Independent Director, Audit | (1) Neither self, spouse, nor relatives within the second degree of kinship serve as directors, supervisors, or employees of the Company or its affiliates.
(2) Neither self, spouse, nor relatives within the second degree of kinship (whether in own name or that of another person) hold any shares in the | 2 |

12 -

| Criteria
Name | Professional Qualifications and Experience | Status of Independence | Concurrently Serving as Other Public Companies’ Independent Directors |
| --- | --- | --- | --- |
| | Committee member, and Remuneration Committee member of Dexin Corp.; Independent Director, Audit Committee member, and Remuneration Committee member of Capital Futures Corporation. Possesses legal professional background and expertise, with over 5 years of work experience as a lecturer or above in law-related departments of public or private colleges and universities.
(2) None of the circumstances under Article 30 of the Company Act exists. | Company.
(3) Do not serve as director, supervisor, or employee of any company that has a specific relationship with the Company
(4) Have not provided business, legal, financial, accounting or any other kind of service to the Company or its affiliates in the last 2 years and obtained remuneration. | |
| Independent director:
Wang, Chi-Chiao | (1) Graduated with a master's degree from the Institute of Electronics Engineering at National Taiwan University. Currently serves as Independent Director, Audit Committee member, and Remuneration Committee member of the Company. Possesses industry and technology professional background and expertise, with over 5 years of work experience required for business and company operations. Passed the national examination and obtained specialist and technical personnel certificates.
(2) None of the circumstances under Article 30 of the Company Act exists. | (1) Neither self, spouse, nor relatives within the second degree of kinship serve as directors, supervisors, or employees of the Company or its affiliates.
(2) Self, spouse, and relatives within the second degree of kinship (whether in own name or that of another person) hold 27,415 shares in the Company, representing an ownership percentage of 0.05%.
(3) Do not serve as director, supervisor, or employee of any company that has a specific relationship with the Company.
(4) Have not provided business, legal, financial, accounting or any other kind of service to the Company or its affiliates in the last 2 years and obtained remuneration. | None |
| Independent director:
Lin, Hsin-Piao | (1) Graduated with a Ph.D. in Electrical Engineering from the University of Texas at Austin. Currently serves as Independent Director and Audit Committee member of the Company; professor of the Department of Electronic Engineering and Director of the Institute of Space Systems Engineering, National Taipei University of Technology; Independent Director, Audit Committee Member, and Remuneration Committee Member at Appro Photoelectron Inc.; Director at Taiwan Aerospace Corporation (Legal Representative of National Development Fund, Executive | (1) Neither self, spouse, nor relatives within the second degree of kinship serve as directors, supervisors, or employees of the Company or its affiliates.
(2) Neither self, spouse, nor relatives within the second degree of kinship (whether in own name or that of another person) hold any shares in the Company.
(3) Does not serve as director, supervisor, or employee of any company that has a specific relationship with the Company. | 1 |

13 -

Name	Professional Qualifications and Experience
	Status of Independence	Concurrently Serving as Other Public Companies’ Independent Directors
	Yuan). Possesses industry and technology professional background and expertise, with over 5 years of work experience as a lecturer or above in departments related to business and company operations of public or private colleges and universities.
(2) None of the circumstances under Article 30 of the Company Act exists.	(4) Has not provided business, legal, financial, accounting or any other kind of service to the Company or its affiliates in the last 2 years and obtained remuneration.

d. Diversity and Independence of the Board of Directors

1) Diversity of the Board of Directors

a) Policy:

To strengthen corporate governance and promote sound development of Board of Directors composition and structure, amendments to the "Director Election Regulations" were approved at the August 10, 2021 shareholder meeting. These stipulate that director selection criteria should include but not be limited to criteria in two major aspects of basic conditions/values and professional knowledge/skills. Members should also possess the knowledge, competence and literacy required to perform their duties in general.

Amendments to the "Corporate Governance Best Practice Principles" were approved at the November 7, 2024 Board meeting. Chapter 3 "Strengthening Board Functions" also stipulates appropriate diversity policies tailored to the Company's own operations, operational models and development needs.

b) Management Goals:

The Company's Board of Directors should guide corporate strategy, supervise the management team, and be accountable to the Company and its shareholders. The corporate governance system's various operations and arrangements should ensure that the Board of Directors exercises its powers in accordance with laws, the Articles of Incorporation, and shareholder meeting resolutions. The Board of Directors should possess adequate professional knowledge and skills. Directors' backgrounds should encompass law, accounting, industry, finance, marketing, and technology. Directors should also possess professional competence, industry experience, and the abilities required to perform their duties.

c) Implementations:

Name	Basic Conditions and Values	Professional Knowledge and Skills	Fulfillment of Ability Status (Note 1)
Nationality	Gender	Employer Status	Age
Dietary	Lin, Kuan-Ming	Taiwan	Male
Wang, Wkang-Hsiang (Note 2)	Male
Hui Yu Investment Co., Ltd. Representative: Lin, Ling-Yu	Female
Fu Ho Investment Co., Ltd. Representative: Chiu, Chi-Hsin	Male
Tung, Chin-Chuan	Male
Young, Yu-Che	Male	☑
Independent directors	Huang, Chin-Tan	Male
Wu, Yung-Sheng	Male
Wang, Chi-Chiao	Male
Lin, Hsin-Piao	Male
Attendance Goal	1	1	3
Note 2: The Company received a formal resignation notice from former Director, Mr. Wang, Wkang-Hsiang, on November 10, 2025. Due to his other business engagements, Mr. Wang has resigned from his position as Director. The resignation took effect on November 10, 2025.
Actual Attendance	1	2	8
Achievement Rate	100%	100%	100%

d) If any gender does not make up one-third of the constitution of the Board of Directors, please explain the reason and describe the planned measures to improve gender diversity among directors:

On June 19, 2024, the Company's board of directors was completely re-elected. Considering the results of the annual regular internal board evaluation and director member (self or peer) evaluation, which showed that the Company's Board of Directors fully performed its functions, eight directors (including three independent directors) out of the original ten directors (including three independent directors) were re-elected, one director was elected as a legal representative. However, former director Wang, Wkang-Hsiang resigned on November 10, 2025. Currently the board consists of nine members (including four independent directors), with one female director.

The election of directors of the Company, unless otherwise provided by laws or the Articles of Incorporation, shall be conducted in accordance with the Company's Director Election Procedures, taking into consideration the overall structure and diversity of the board of directors. Based on the results of performance evaluations, the composition of members will be adjusted as appropriate. In future re-elections, female director candidates will be prioritized to enhance gender diversity among directors.

16 -

2) Independence of the Board of Directors

The current Board of Directors has 9 members, including 4 independent directors (44% of all directors), of whom 2 have served less than 3 terms. There are also 2 directors with employee status (22% of all directors), 1 female director (11% of all directors), and 2 directors with spousal or 2nd-degree kinship relationships (22% of all directors). Other independence criteria are shown in the table below:

Name	Criteria	Independent Director Term Within 3 Terms	Served	Female Directors	Managers With Spousal or Within Second Degree of Kinship Relations	Fulfillment of Independent Status (Note)
						1	2	3	4	5	6	7	8	9	10	11	12
Directors	Lin, Kuan-Ming		✓		✓						✓		✓	✓		✓	✓
	Hui Yu Investment Co., Ltd. Representative: Lin, Ling-Yu			✓	✓	✓					✓		✓	✓		✓
	Fu Ho Investment Co., Ltd. Representative: Chiu, Chi-Hsin					✓		✓	✓		✓		✓	✓	✓	✓
	Tung, Chin-Chuan					✓		✓	✓	✓	✓	✓	✓		✓	✓	✓
	Young, Yu-Che		✓				✓			✓	✓	✓	✓	✓	✓	✓	✓
Independent directors	Huang, Chin-Tan					✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Wu, Yung-Sheng					✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Wang, Chi-Chiao	✓				✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
	Lin, Hsin-Piao	✓				✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓

Note: For conditions met by each director in the 2 years prior to appointment and during the term of office, please tick the box below the condition code:
(1) Not an employee of the Company or its affiliates.
(2) Not a director or supervisor of the Company or its affiliates (this does not apply in cases where independent directors are appointed for the Company and its parent company, subsidiary, or subsidiary of the same parent company in accordance with this Act or local laws and regulations).
(3) Neither self, spouse nor minor children hold 1% or more of the Company's total issued shares or are one of the top 10 natural person shareholders.
(4) Not a spouse, second degree relative, or third degree direct blood relative of persons listed in (1) or the persons listed in (2) and (3).
(5) Not a director, supervisor, or employee of a corporate shareholder directly holding 5% or more of the Company's total issued shares, or one of the top 5 shareholders. Does not apply in cases where independent directors are appointed for the Company and its parent company, subsidiary, or subsidiary of the same parent company in accordance with this Act or local laws and regulations.
(6) Not a director, supervisor, or employee of another company where over half of director seats or voting shares with voting rights are controlled by the same person who controls over half of director seats or voting shares with voting rights of the Company. Does not apply in cases where independent directors are appointed for the Company and its parent company, subsidiary, or subsidiary of the same parent company in accordance with this Act or local laws and regulations.
(7) Not a director, supervisor, or employee of another company or institution where the Chairman, General Manager or equivalent position holder is the same person or spouse as the Company's. Does not apply in cases where independent directors are appointed for the Company and its parent company, subsidiary, or subsidiary of the same parent company in accordance with this Act or local laws and regulations.
(8) Not a director, supervisor, manager, or shareholder holding 5% or more shares of a specified company or institution that has financial or business dealings with the Company. Does not apply in cases where the specified company or institution holds 20% or more and no more than 50% of the Company's total issued shares, and independent directors are appointed for the Company and its parent company, subsidiary, or subsidiary of the same parent company in accordance with this Act or local laws and regulations.
(9) Not an owner, partner, director, supervisor, manager or spouse of a sole proprietorship, partnership, company or institution providing commercial, legal, financial, accounting or other related services to the Company or its affiliates, where the cumulative fees obtained in the previous 2 years exceed NT$500 thousand. This does not apply to members of the remuneration committee, public tender offer review committee, or special committee for mergers and acquisitions who exercise powers pursuant to relevant laws such as the Securities and Exchange Act or Business Mergers and Acquisitions Act.
(10) Not a spouse or within second degree kinship of other directors.
(11) None of the circumstances under Article 30 of the Company Act exists.
(12) Not elected as government, legal entity or their representative as director in accordance with Article 27 of the Company Act.

(2) Information on President, Vice Presidents, Assistant Vice Presidents and Heads of Departments and Branches
As of April 30, 2026

Title	Nationality	Name	Gender	Election (Appointment) Date	No. of Shares Held		Spouse and Underage Children No. of Shares Held		No. of Shares Held in Others' Names		Major Education & Experience	Concurrent Positions in Other Companies	Spouse or Relative within Second Degree of Kinship who are also Managers			Remarks
					No. of Shares	Percentage of Shares	No. of Shares	Percentage of Shares	No. of Shares	Percentage of Shares			Title	Name	Relationship
Chief Executive	Taiwan.	Lin, Kuan-Ming	Male	1997.05.12	1,522,193	2.64%	818,714	1.42%	-	-	Bachelor's in Electrical Engineering, National Taiwan University President of Premier Venture Capital Corp. Chairman of System General Technology Assistant Vice President of MiTAC Synnex Group	Chairman of Grand Impact Technology Limited Chairman of Ruby Tech (Beijing) Co., Ltd. Chairman and President of Premier Venture Capital Corp. Chairman of Chief Investment Corp. Chairman of Premier Capital Management Corp. Director of Hui Yu Investment Corp. Direct and President of Chief Venture Capital Corp. (Legal Representative of Hui Yu Investment) Director of Dexin Corp. Director of Lung Hwa Electronics Co., Ltd. (Legal Representative of Shin Ching Investment) Director of Taivex Therapeutics Corporation (Legal Representative of Tsou Seen Chemical) Director of China Petrochemical Development Corp. (Legal Representative of C.P. Leasing Co., Ltd.) Director of Deltamac (Taiwan) Co., Ltd. (Legal Representative of CHC International Investment Corp.) Independent Director and member of Remuneration Committee of Getac Holdings Corporation	None	None	None	Note

Title	Nationality	Name	Gender	Election (Appointment) Date	No. of Shares Held		Spouse and Underage Children No. of Shares Held		No. of Shares Held in Others’ Names		Major Education & Experience	Spouse or Relative within Second Degree of Kinship who are also Managers
					No. of Shares	Percentage of Shares	No. of Shares	Percentage of Shares	No. of Shares	Title		Name	Relationship
President and Head of Sales Div. and Head of RD Div.	Taiwan	Young, Yu-Che	Male	2010.10.01	466,628	0.81%	24,859	0.04%	-	-	Master's in Electrical and Computer Engineering, University of Michigan
Director and President of Vodul Communications Inc.
Business associate of Accton Technology Corp.	None	None	None	None	-
Vice President of Manufacture Div.	Taiwan	Wang, Wen-Chang	Male	2006.07.01	122,463	0.21%	-	-	-	-	Graduated from the Department of Electrical and Information Engineering, China University of Science and Technology
Assistant Vice President of the Manufacture Div., Ruby Tech Corp.
Assistant Vice President of the RD Div. and Manufacture Div. of Guang Rong Technology Corp.	None	None	None	None	-
Assistant Vice President of Sales Div.	Taiwan	Liao, Li-Fen	Female	2006.07.01	114	0.00%	339	0.00%	-	-	Graduated from the Department of International Trade, Takming University of Science and Technology
Sales Manager of Ruby Tech Corp.	None	None	None	None	-
Assistant Vice President of Sales Div.	Taiwan	Huang, Chien-Cheng	Male	2022.05.01	-	-	-	-	-	-	Graduated from the Institute of Industrial and Systems Engineering, Ohio State University
Sales Manager of Ruby Tech Corp.	Ruby Tech (Beijing) Co., Ltd. Vice President	None	None	None	-
Assistant Vice President of Product Planning Div.	Taiwan	Tseng, Hung-Min	Male	2021.03.01	21,854	0.04%	-	-	-	-	Graduated from the Department of Communications, Navigation, and Control Engineering, National Taiwan Ocean University
Hardware Manager, Accton Technology Corp.
Hardware Engineer, Cameo Communications Inc.	None	None	None	None	-

-19-

Title	Nationality	Name	Gender	Election (Appointment) Date	No. of Shares Held		Spouse and Underage Children No. of Shares Held		No. of Shares Held in Others’ Names		Major Education & Experience	Concurrent Positions in Other Companies	Spouse or Relative within Second Degree of Kinship who are also Managers			Remarks
					No. of Shares	Percentage of Shares	No. of Shares	Percentage of Shares	No. of Shares	Title			Name	Relationship
Senior Assistant Vice President of Innovation & Development Div.	Taiwan	Hung, Chin-Piao	Male	2004.10.01	-	-	-	-	-	-	Graduated from the Department of Mechanical Engineering, National Chiao Tung University Manager of RD Div., Hardware Engineer, Ruby Tech Corp. Manager of the RD Div., Qiangjing Technology Corp.	None	None	None	None	-
Senior Assistant Vice President of RD Div.	Malaysia	Chen, Kuo-Hsiung	Male	2014.02.01	103,912	0.18%	-	-	-	-	Graduated from the Department of Electrical Engineering, National Taiwan University Manager of the RD Div., Director of Engineering, Ruby Tech Corp.	None	None	None	None	-
Assistant Vice President of RD Div.	Taiwan	Wang, Chin-Yi	Male	2018.03.01	39,351	0.07%	1,091	0.002%	-	-	Graduated from the Department of Electronic Engineering, National Taipei University of Technology Manager of the RD Div., Director of Hardware Engineering, Ruby Tech Corp.	None	None	None	None	-
Assistant Vice President of Administration Div. and Assistant Vice President of Finance Div. and Corporate Governance Officer	Taiwan	Chen, Yun-Chen	Female	2010.02.01	68,468	0.12%	-	-	-	-	Graduated from the Department of Accounting, National Chengchi University Manager of the Administration Div. and Sales Div. Ruby Tech Corp. Assistant Manager of the Administration Div. of Kiwi Microsystem Inc. In Charge of Ernst & Young Global Ltd. Accounting Firm	None	None	None	None	-

Note: Chairman Lin, Kuan-Ming also serves as Chief Executive due to his electrical engineering background from National Taiwan University and possession of the business experience required for operations, coordinating various decisions, participating in routine management meetings, proactively coordinating and integrating internal and external resources for major operational meetings.

-20-

2. Remuneration to Directors, Supervisors, President, and Vice Presidents in Recent Years

(1) Remuneration to Directors and Independent Directors

December 31, 2025
Unit: NT$ thousand

Title	Name	Director/ Compensation							Total of Items A, B, C and D & Percentage of After-Tax Net Income (Note 7)	Pay given to employees also serving as other Div.								Total of Items A, B, C, D, E, F and G & Percentage of After-Tax Net Income (Note7)	All Received Items Inventions Other Than Subsidiaries or Parent Company
		Employees' Compensation (A) (Note 1)		Retirement Pensions (B)		Directors/ Remuneration (C) (Note 2)		Business Execution Expenses (D) (Note 3)			Salaries, Bonuses, and Special Expenses etc. (E) (Note 4)		Retirement Pensions (F) (Note5)		Employees' Compensation (G) (Note6)
		The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement
Chairman	Lin, Kuan-Ming	0	0	0	0	2,429	2,429	410	410	2,839 (1.85%)	2,839 (1.85%)	14,134	14,134	108	108	8,468	0	8,468	0	25,549 (16.61%)	25,549 (16.61%)	None
Director	Wang, Wkang-Hsiang
Director	Hui Yu Investment Co., Ltd.
Director	Fu He Investment Co., Ltd.
Director	Tung, Chin-Chuan
Director	Young, Yu-Che
Independent director	Huang, Chin-Tan	960	960	0	0	1,661	1,661	280	280	2,901 (1.89%)	2,901 (1.89%)	0	0	0	0	0	0	0	2,901 (1.89%)	2,901 (1.89%)	None
Independent director	Wu, Yung-Sheng
Independent director	Wang, Chi-Chiao
Independent director	Lin, Hsin-Piao

Please describe the independent director compensation policy, system, standards, and structure. Explain correlation between compensation amounts and factors such as responsibilities, risks, time invested, etc.:
Compensation for the Company's independent directors is paid with reference to normal levels in the same industry after review by the Remuneration Committee and proposal for approval by the Board of Directors. Director compensation is also appropriated in accordance with Article 26 of the Articles of Incorporation. Individual amounts are determined in accordance with the Company's Regulations Governing the Performance Appraisal of the Board of Directors, based on results of performance evaluations according to the criteria, then reviewed by the Remuneration Committee before proposal for approval by the Board of Directors.
In addition to the compensation disclosed in the above table, compensation received in the most recent fiscal year by directors of the Company for providing services (such as advisors to the parent company/all companies in the financial report/inventees other than employees) was: None.
Former director Wang, Wkang-Hsiang resigned on November 10, 2025.

Compensation distribution range for Company directors	Name of director
	Total of first 4 compensation items (A+B+C+D)		Total of first 7 compensation items (A+B+C+D+E+F+G)
	The Company	All companies in the financial report	The Company	All companies in the financial report
Below $1,000,000	10 (Note 8)	10 (Note 8)	8 (Note 9)	8 (Note 9)
NT $1,000,000(included)~ NT $2,000,000 (not included)
NT $2,000,000(included)~ NT $3,500,000 (not included)
NT $3,500,000(included)~ NT $5,000,000(not included)
NT $5,000,000(included)~ NT $10,000,000(not included)
NT $10,000,000(included)~ NT $15,000,000(not included)			2 (Note 10)	2 (Note 10)
NT $15,000,000(included)~ NT $30,000,000(not included)
NT $30,000,000(included)~ NT $50,000,000(not included)
NT $50,000,000(included)~ NT $100,000,000(not included)
Above $100,000,000
Total	10	10	10	10

Note 1: 2025 compensation for directors (including director remuneration, position-based compensation, severance pay, various bonuses, incentive payments, etc.)

Note 2: 2025 appropriated director compensation approved by Board resolution: NT$ 4,090 thousand.

Note 3: 2025 expenses related to director execution of duties (including transportation expenses, special expenses, various allowances, dormitories, company vehicles provided, etc.)

Note 4: 2025 compensation received by directors also serving as employees (including as general managers, deputy general managers, other managers and staff), including remuneration, position-based compensation, severance pay, various bonuses, incentive payments, transportation expenses, special expenses, various allowances, dormitories, company vehicles provided, etc. Salary expenses recognized in accordance with IFRS 2 Share-based Payment, including obtainment of employee stock options, restricted employee rights shares, and participation in cash capital increase share subscriptions, should also be included in compensation. The Company's salary and other compensation under this item totaled NT$ 13,385 thousand. A leased vehicle was provided, with rental of NT$ 749 thousand. One company vehicle were also provided, with a total original cost of NT$ 1,620 thousand.

Note 5: In accordance with TPEx regulations, the following is disclosed: The Company's actual pension payout was NT$ 0. Appropriated pension expense was NT$ 108 thousand.

Note 6: Refers to 2025 employee compensation (including stock and cash) obtained by directors also serving as employees. 2025 appropriated employee compensation approved by Board resolution totaled NT$ 20,451 thousand, distributed fully in cash. Based on proportional distribution to last year's actual amount, the proposed 2025 employee compensation distribution for directors also serving as employees is NT$ 8,468 thousand.

Note 7: 2025 after-tax net profit was NT$ 153,857 thousand.

Note 8: Lin, Kuan-Ming, Wang, Wkang-Hsiang, Hui Yu Investment Co., Ltd., Fu Ho Investment Co., Ltd., Tung, Chin-Chuan, Young, Yu-Che, Huang, Chin-Tan, Wu, Yung-Sheng, Wang, Chi-Chiao and Lin, Hsin-Piao (10 persons).

Note 9: Wang, Wkang-Hsiang, Hui Yu Investment Co., Ltd., Fu Ho Investment Co., Ltd., Tung, Chin-Chuan, Huang, Chin-Tan, Wu, Yung-Sheng, Wang, Chi-Chiao and Lin, Hsin-Piao (8 persons).

Note 10: Lin, Kuan-Ming, Young, Yu-Che (2 persons).

(2) Remuneration to Supervisors: N/A

(3) Remunerations to President and Vice Presidents

December 31, 2025
Unit: NT$ thousands

Title	Name	Salaries (A) (Note 1)		Retirement Pensions (B) (Note 2)		Bonuses and Special Expenses etc. (C) (Note 3)		Amount of Employees' Compensation (D) (Note 4)				Total of Items A, B, C, and D & Percentage of After-Tax Net Income (%) (Note 5)		Pay Received from Investees Other Than Subsidiaries or Parent Company
		The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company	All Companies Specified in the Financial Statement	The Company		All Companies Specified in the Financial Statement		The Company	All Companies Specified in the Financial Statement
								Cash	Stock	Cash	Stock
Chief Executive	Lin, Kuan-Ming	7,590	7,590	302	302	11,949	11,949	10,345	0	10,345	0	30,186 (19.60%)	30,186 (19.60%)	None
President and Head of Sales Div. and RD Div.	Young, Yu-Che
Vice President of Manufacture Div.	Wang, Wen-Chang
Assistant Vice President of Sales Div. and Vice President of Subsidiary in China	Huang, Chien-Cheng
Compensation Scale of the Company's President and Vice President	Name of President and Vice Presidents
---	---	---
	The company	All companies in the financial report
Below $1,000,000
NT $1,000,000(included)~ NT $2,000,000(not included)
NT $2,000,000(included)~ NT $3,500,000(not included)	1 (Note 6)	1 (Note 6)
NT $3,500,000(included)~ NT $5,000,000(not included)
NT $5,000,000(included)~ NT $10,000,000(not included)	1 (Note 7)	1 (Note 7)
NT $10,000,000(included)~ NT $15,000,000(not included)	2 (Note 8)	2 (Note 8)
NT $15,000,000(included)~ NT $30,000,000(not included)
NT $30,000,000(included)~ NT $50,000,000(not included)
NT $50,000,000(included)~ NT $100,000,000(not included)
Above $100,000,000
Total	5	5

Note 1: 2025 salary, position-based compensation, and severance pay for president and vice presidents.
Note 2: In accordance with TPEx regulations, the following is disclosed: The Company's actual pension payout was NT$ 0. Appropriated pension expense was NT$ 302 thousand.
Note 3: 2025 president and vice president bonuses, incentive payments, transportation expenses, special expenses, various allowances, dormitories, company vehicles provided and other compensation amounts. Salary expenses recognized in accordance with IFRS 2 Share-based Payment, including obtainment of employee stock options, restricted employee rights shares, and participation in cash capital increase share subscriptions, should also be included in compensation. The Company's salary and other compensation under this item totaled NT$ 11,200

thousand. A leased vehicle was provided, with rental of NT$ 749 thousand, one company vehicles were also provided with total original cost of NT$ 1,620 thousand.

Note 4: 2025 employee compensation approved by Board resolution totaled NT$ 20,451 thousand, distributed fully in cash. Based on proportional distribution to last year's actual amount, the proposed 2025 employee compensation distribution for President and Vice Presidents is NT$ 10,345 thousand.

Note 5: 2025 after-tax net profit was NT$ 153,857 thousand.

Note 6: Huang, Chien-Cheng (1 person)

Note 7: Wang, Wen-Chang (1 person)

Note 8: Lin, Kuan-Ming, Young, Yu-Che (2 persons)

(4) Names of executive officers that received employee bonuses and status of the distribution

December 31, 2025
Unit: NT$ thousand

Title		Name	Stock Amount	Cash Amount (Note 1)	Total	Total Amount & Percentage of After-Tax Net Income (%) (Note 2)
Managers	Chief Executive	Lin, Kuan-Ming	0	13,568	13,568	8.82%
	Chief Executive and Supervisor of Sales Div. and RD Div.	Young, Yu-Che
	Vice President of Manufacture Div.	Wang, Wen-Chang
	Assistant Vice President of Sales Div.	Liao, Li-Fen
	Assistant Vice President of Sales Div. and Vice President of Subsidiary in China	Huang, Chien-Cheng
	Assistant Vice President of Product Planning Div.	Tseng, Hung-Min
	Senior Assistant Vice President of Innovation & Development Div.	Hung, Chin-Piao
	Senior Assistant Vice President of Innovation & Development Div.	Lin, Chih-Hung (Note 3)
	Senior Assistant Vice President of RD Div.	Chen, Kuo-Hsiung
	Assistant Vice President of RD Div.	Wang, Chin-Yi
	Assistant Vice President of Administration Div. and Finance Div. and Corporate Governance Officer	Chen, Yun-Chen

Note 1: 2025 employee compensation approved by Board resolution totaled NT$ 20,451 thousand, distributed fully in cash. Based on proportional distribution to last year's actual amount, the proposed 2025 employee compensation distribution for managers is NT$ 13,568 thousand.

Note 2: 2025 after-tax net profit was NT$ 153,857 thousand.

Note 3: Senior Assistant Vice President Lin, Chih-Hung retired on October 30, 2025.

(5) Compare and describe separately the analysis of total remunerations paid to the Company's directors, president, and vice presidents for the past two years by the Company and all companies in the consolidated report as a percentage of the net income after tax, and describe the correlation among the remuneration payment policy, standards and combination, remuneration establishing procedures, and management performance and future risks.

Unit: NT$ thousand

Title	2025				2024
	Total compensation amount		% of after-tax net profit		Total compensation amount		% of after-tax net profit
	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities
Direct	35,927	35,927	23.35%	23.35%	33,078	33,078	24.25%	24.25%
President and Vice President

Note: The above compensation amounts include bonuses, incentive payments, transportation expenses, special expenses, various allowances, dormitories, company vehicles provided and other compensation amounts.

In accordance with Article 196 of the Company Act, the Articles of Incorporation expressly stipulate compensation for all directors is authorized to the Board of Directors for resolution based on extent of participation and contribution value in the Company's operations, with reference to normal levels in the same industry.

For directors concurrently serving as managers, compensation is handled in accordance with the Articles of Incorporation and Remuneration Management Regulations, with appropriate approval also obtained for adjustments.

Company operational performance and profitability are important criteria for distribution, with a positive correlation between distribution and payment.

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3. Implementation of Corporate Governance

(1) Implementation of Board of Directors

The Board of Directors held 7 meetings in the most recent fiscal year (A). The attendance of directors was as follows:

| Title | Name | Actual Attendance (B) | By Proxy Attendance | Actual Attendance Rate (%)
【B/A】 | Note |
| --- | --- | --- | --- | --- | --- |
| Chairman | Lin, Kuan-Ming | 7 | 0 | 100% | Reelected on Jun. 19, 2024 |
| Director | Wang, Wkang-Hsiang | 6 | 0 | 100% | Resigned on November 10, 2025. Should have attended 6 meeting; actually attended 6 meeting |
| Director | Hui Yu Investment Co., Ltd.
Representative: Lin, Ling-Yu | 7 | 0 | 100% | Former Director, first elected as Legal Representative of Corporate Director on Jun. 19, 2024 |
| Director | Fu Ho Investment Co., Ltd.
Representative: Chiu, Chi-Hsin | 7 | 0 | 100% | Reelected on Jun. 19, 2024 |
| Director | Tung, Chin-Chuan | 6 | 1 | 86% | Reelected on Jun. 19, 2024 |
| Director | Young, Yu-Che | 7 | 0 | 100% | Reelected on Jun. 19, 2024 |
| Independent director | Huang, Chin-Tan | 6 (Note 1) | 1 | 86% | Reelected on Jun. 19, 2024 |
| Independent director | Wu, Yung-Sheng | 7 (Note 1) | 0 | 100% | Reelected on Jun. 19, 2024 |
| Independent director | Wang, Chi-Chiao | 7 (Note 1) | 0 | 100% | Reelected on Jun. 19, 2024 |
| Independent director | Lin, Hsin-Piao | 7 (Note 1) | 0 | 100% | Newly elected on Jun. 19, 2024 |
| Note 1: 2025 Attendance of Independent Directors at annual meeting of the Board of Directors was as follows: | | | | | |
| Date of Board of Directors meeting | 2025.03.05 | 2025.05.05 | 2025.06.10 | 2025.08.04 | 2025.10.03 | 2025.11.05 | 2025.12.15 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Huang, Chin-Tan | ☑ | ☑ | By Proxy Attendance | ☑ | ☑ | ☑ | ☑ |
| Wu, Yung-Sheng | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ |
| Wang, Chi-Chiao | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ |
| Lin, Hsin-Piao | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ |

Other matters that require reporting:

If any of the following circumstances occur with respect to board meetings, the date, session, contents of motion, opinions of all independent directors, and the Company's handling of the opinions of the independent directors shall be stated:

(1) Matters listed in Article 14-3 of the Securities and Exchange Act:

Date	Proposal Content	14-3 of the Securities and Exchange Act: Matters listed	Independent Director's Dissent or Reservation of Opinion	The Company's Response to the Independent Directors' Opinions
2025.03.05
6th Meeting of the
16th Session	1. The Company's 2025 CPA appointment, remuneration, independence and suitability assessment.	☑	Approved as proposed	None
2025.08.04
9th Meeting of the
16th Session	1. The Company's Remuneration Committee reviewed the proposal for the distribution of employee remuneration to managers for the year 2024.	☑	Approved as proposed	None
2025.10.03
10th Meeting of the
16th Session	1. The Company proposes the 1st issuance of employee stock option certificates in 2025.	☑	Approved as proposed	None
2025.11.05
11th Meeting of the
16th Session	1. The Company proposes the list of grantees, units granted, and subscribable shares of the 2025 1st employee stock option certificates.	☑	Approved as proposed	None
	2. Amendments to the Company's "Procedures for Acquisition and Disposal of Assets."	☑	Approved as proposed	None
	3. Amendments to the Company's "Internal Control System" and "Internal Audit Implementation Rules".	☑	Approved as proposed	None

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Date	Proposal Content	14-3 of the Securities and Exchange Act: Matters listed	Independent Director's Dissent or Reservation of Opinion	The Company's Response to the Independent Directors' Opinions
2025.12.15 12th Meeting of the 16th Session	1. The Company's Remuneration Committee reviewed the 2025 year-end bonus distribution plan.	✓	Approved as proposed	None

(2) In addition to the above matters, any other resolutions of the Board of Directors objected to or qualified by independent directors that have been recorded or stated in writing: None.

Execution of avoidance of conflicts of interest by directors:

Date	Meeting and motion	Name of director	Reason for recusal	Voting status
2025.08.04 9th Meeting of the 16th Session	1. The Company's Remuneration Committee reviewed the proposal for the distribution of employee remuneration to managers for the year 2024.	Lin, Kuan-Ming Lin, Ling-Yu Young, Yu-Che	The directors serve concurrently as managers of the Company. The distribution amount in this distribution proposal involves a conflict of interest with the directors who serve concurrently as a manager and his spouse.	According to Article 14 of the Company's Rules of Procedure for Shareholders' Meetings, Chairman Lin, Kuan-Ming and his spouse, Director Lin, Ling-Yu, (representative of Hui Yu Investment) and Director Young, Yu-Che have recused themselves as required. This proposal was submitted and, after consultation with the chairman, approved by all attending directors without any objection, excluding the directors who were required to recuse themselves, this case was approved as proposed.
2025.11.05 11th Meeting of the 16th Session	The Company proposes the list of grantees, units granted, and subscribable shares of the 2025 1st employee stock option certificates.	Lin, Kuan-Ming Lin, Ling-Yu Young, Yu-Che	The directors serve concurrently as managers of the Company. The distribution amount in this distribution proposal involves a conflict of interest with the directors who serve concurrently as a manager and his spouse.	According to Article 14 of the Company's Rules of Procedure for Shareholders' Meetings, Chairman Lin, Kuan-Ming and his spouse, Director Lin, Ling-Yu, (representative of Hui Yu Investment) and Director Young, Yu-Che have recused themselves as required. This proposal was submitted and, after consultation with the chairman, approved by all attending directors without any objection, excluding the directors who were required to recuse themselves, this case was approved as proposed.

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Date	Meeting and motion	Name of director	Reason for recusal	Voting status
2025.12.15
12th Meeting of the 16th Session	1. The Company's Remuneration Committee reviewed the 2025 year-end bonus distribution case.	Lin, Kuan-Ming Lin, Ling-Yu Young, Yu-Che	The directors serve concurrently as managers of the Company. The distribution amount in this distribution proposal involves a conflict of interest with the directors who serve concurrently as a manager and his spouse.	According to Article 14 of the Company's Rules of Procedure for Shareholders' Meetings, Chairman Lin, Kuan-Ming and his spouse, Director Lin, Ling-Yu, (representative of Hui Yu Investment) and Director Young, Yu-Che have recused themselves as required. This proposal was submitted and, after consultation with the chairman, approved by all attending directors without any objection, excluding the directors who were required to recuse themselves, this case was approved as proposed.

Listed companies should disclose information on the evaluation cycle, period, scope, method and content of the self-evaluation (or peer evaluation) of the Board of Directors, and fill in the implementation status of the Board evaluation:

Evaluation cycle	Evaluation period	Evaluation scope	Evaluation method	Evaluation content	Implementation status
Annually Implemented once a year	Evaluate the performance of the Board of Directors from January 1, 2025 to December 31, 2025	Board	Self-evaluation by the Company's corporate governance unit	Includes five major aspects: "Level of participation in company operations", "Enhancing the quality of Board decisions", "Composition and structure of the Board", "Appointment and continuing education of directors", and "Internal control"	Overall evaluation result: 98 points after conversion.
The Company's directors comply with the corporate governance policy on diversity, continue professional education to enhance expertise, and actively participate in Board meetings and decision-making discussions to understand the Company's risks and supervise accordingly, fully exerting the functions of the Board.

Evaluation cycle	Evaluation scope	Evaluation method	Evaluation content	Implementation status
	Board Individual Members	Self-evaluation by Board members	Includes six major aspects: "Understanding of Company objectives and missions", "Awareness of directors' responsibilities", "Level of participation in company operations", "Managing internal relationships and communication", "Professionalism and continuing education of directors", and "Internal control"	Overall evaluation result: Between 96-99 points after conversion
The Company's directors are already familiar with and actively participate in discussions of various Board agenda items, and contribute their own expertise to provide the basis for Board decisions.
	Audit Committee	Self-evaluation by the Company's corporate governance unit	Includes five major aspects: "Level of participation in company operations", "Awareness of Audit Committee responsibilities", "Enhancing the quality of Audit Committee decisions", "Composition and appointment of Audit Committee members", and "Internal control"	Overall evaluation result: 99 points after conversion
The Company's Audit Committee members actively participate in Audit Committee meetings and provide effective supervision to assist Board decision-making.
	Remuneration Committee	Self-evaluation by the Company's corporate governance unit	Includes four major aspects: "Level of participation in company operations", "Awareness of Remuneration Committee responsibilities", "Enhancing the quality of Remuneration Committee decisions", and "Composition and appointment of Remuneration Committee members"	Overall evaluation result: 99 points after conversion
The Company's Remuneration Committee members actively participate in Remuneration Committee meetings and decision-making discussions, and provide professional and objective recommendations for Board discussions in a timely manner.

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Goals for strengthening Board functions in recent years and current year up to the date of annual report printing (e.g. establishing an audit committee, enhancing information transparency) and evaluation of implementation status:

(1) Strengthening Board functions

The Company has formulated the "Corporate Governance Best Practice Principles" and established a board member diversity policy that is fully implemented. Please refer to page 14.
The Company has formulated "Regulations Governing the Performance Appraisal of the Board of Directors" to establish performance goals and strengthen the operational efficiency of the Board of Directors. The Company has formulated the "Rules for Board Performance Evaluations" to strengthen Board operation efficiency. Board self-evaluations and director self-evaluations for 2025 have been completed by the end of 2025. The evaluation results show that the Company's Board of Directors has fully exercised its proper functions.
In accordance with the "Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE and TPEx Listed Companies", the Company's directors participate in continuing education courses covering corporate governance topics offered by the prescribed institutions. Please refer to page 59 for continuing education in 2025.
To strengthen the independence of the Board's operations, the Company has appointed four independent directors during the re-election held on June 19, 2024. Mr. Huang Chin-Tan, Mr. Wu Yung-Sheng, Mr. Wang Chi-Chiao, and Mr. Lin, Hsin-Piao have provided the Board with sound advice by leveraging their expertise, accounting, and financial analysis capabilities with respect to the Company's business, implementation of internal control systems, financial and other related proposals.
The Company established an Audit Committee composed of all independent directors on August 10, 2021, in accordance with the Securities and Exchange Act to replace the supervisors' responsibilities.
In accordance with Article 19 of the Company's Articles of Incorporation and by resolution of the Board of Directors, directors' liability insurance has been purchased for the Company's directors every year since 2007, and reports have been submitted to the Board of Directors.

(2) Communications between independent directors, internal audit officers and CPAs (including communication matters, methods, and results regarding the Company's financial and business conditions)

The Company has established an internal audit unit directly under the Board of Directors in accordance with laws and regulations to reasonably ensure effective implementation of internal control systems. Audit reports are presented at Board meetings, and audit results and improvements are sent to each independent director monthly. Therefore, the Company's independent directors can understand the Company's operational risks and improvements in a timely manner.

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The Company's independent directors and internal audit officers hold separate meetings quarterly to review the execution status of internal audit activities and the tracking status of deficiencies. The Company also regularly discloses meeting status on its website.
The Company's independent directors, internal audit officer and CPAs hold separate communication meetings annually regarding the audit status of the Company's financial reports, financial business status, and important accounting issues. Additional meetings may be called at any time in case of major incidental abnormalities. The Company also regularly discloses communication status on its website.
After the quarterly review of the financial statements, the Company's CPAs attend Audit Committee meetings to communicate the review procedures and results with the independent directors. The Company also regularly discloses communication status on its website.
After completing the quarterly review of the financial statements, the Company's CPAs notify the independent directors in writing. The notification includes the report type of the current review, major adjusting entries and unadjusted entries, related party transactions, major accounting estimates, fraud and noncompliance with laws and regulations, consolidated financial statement audits, major subsequent events, management representation letters, major deficiencies in internal control, matters on which the CPAs disagree with management, and the governance unit's recommendations for the current and future audit work of the CPA firm. Written communication is carried out regularly, and the notification status is disclosed on the Company's website.
The Company's CPA, Ms. Lin, Shu-Ju, attended the Board meetings on March 5, 2025, and August 4, 2025, to communicate with the directors.

(3) Enhancing information transparency

The Company and its subsidiaries engage Deloitte & Touche to periodically audit and certify their financial statements. Information required by law is publicly disclosed accurately and in a timely manner, with dedicated personnel responsible for collecting and disclosing company information.
On December 10, 2009, the Company's Board of Directors formulated the "Procedures for Handling Material Inside Information", establishing spokesperson and deputy spokesperson systems. The latest revised version was approved by the Board of Directors on November 2, 2022, establishing sound mechanisms for handling, disclosing, and dealing with violations of material inside information, with rigorous assessment processes and retained review records to ensure timely and proper disclosure of all material information.
A stakeholder section has been set up on the Company's website with links to the Market Observation Post System, providing shareholders and stakeholders with access to relevant information about the Company's financials and operations.

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Since 2011 the Company has participated in the Securities and Futures Institute's corporate governance evaluation. The evaluation results from 2011 to 2014 were all A Rank. Since 2015 the Company has participated in the Taiwan Stock Exchange's corporate governance evaluation. From 2015 to 2021, the evaluation results were in the top 20% of companies. Companies ranked in the top 35% of the Corporate Governance Evaluation from 2022 to 2024, and those ranked in the top 50% in 2025; additionally, for companies with a market capitalization of less than NT$5 billion, those ranked in the top 20% in 2023, and those ranked in the top 40% from 2024 to 2025.
Succession plans for Board members and key management personnel:

(1) Directors

Except as otherwise provided by law or the Articles of Incorporation, the election of the Company's directors shall be handled in accordance with the Procedures for Election of Directors, taking into overall consideration the Board's overall configuration and diversity policies, and making timely adjustments to the composition based on performance evaluation results. Successors in succession plans are also required to meet the Company's requirements and possess the necessary capabilities to perform their duties.
Key members of the Company's management team attend Board meetings to cultivate strategy development capabilities and familiarity with Board operations. They are expected to become candidates for succeeding the Board after evaluation.
Young, Yu-Che, who serves as the Company's president, meets the criteria for Board members, understands his responsibilities and is familiar with the Company's operations and environment. Hence, at the expiration of his term as director in the 2018 general shareholder meeting, he was re-elected and then re-elected again in 2021 and 2024.

(2) Key management personnel

The Company focuses on cultivating potential talents for its key management succession plan. It has comprehensive education and training systems and promotion ladders in place to provide continuous improvement and development opportunities to meet future key management succession needs.
The Company encourages employees to enhance their capabilities. In addition to internal training, employees may also participate in external training for which the HR department handles registration and payment. Training records are maintained by the HR department in employees' individual training logs, which helps understand employees' training history and serves as an evaluation criterion for year-end performance appraisals.
The Company's management is configured according to organizational hierarchies, with senior and junior supervisors in each department. Junior supervisors are appointed as deputies for senior supervisors from time to time to cultivate them for future leadership roles. Performance appraisals are conducted semiannually through day-to-day observations and interviews to understand areas for improvement and personal expectations, serving as references for succession planning.

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(2) Operations of the Audit Committee or supervisors' participation in Board meetings

The Company established an Audit Committee composed of all independent directors on August 10, 2021 in accordance with the Securities and Exchange Act to replace the supervisors' responsibilities. The number of Audit Committee meetings held in the most recent fiscal year: 4 (A). Attendance of independent directors is as follows:

Title	Name	Actual Attendance (B)	Actual Attendance Rate (B/A)	Note
Independent director	Huang, Chin-Tan	4	100%	Reelected Independent Director on Jun. 19, 2024
Independent director	Wu, Yung-Sheng	4	100%	Reelected Independent Director on Jun. 19, 2024
Independent director	Wang, Chi-Chiao	4	100%	Reelected Independent Director on Jun. 19, 2024
Independent director	Lin, Hsin-Piao	4	100%	Newly elected on Jun. 19, 2024

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Other matters that require reporting:

If the Audit Committee has any of the following circumstances, the meeting date, period, agenda, independent director's opinion expressing objections or reservations or the content of major suggestions, Audit Committee resolution results, and the Company's handling of the Audit Committee's opinion shall be stated:

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

Date	Agenda	Matters set out in Article 14-5 of the Securities and Exchange Act	Independent director’s Opinion	Audit Committee resolution results	The Company's Response to the Audit Committee's Opinions
2025.03.05
3rd Meeting of the 2nd Session	1. The Company's 2024 business report and financial statements.	☑	None	Approved as proposed	Approved as proposed
	2. The Company's 2024 earnings distribution plan.	☑	None	Approved as proposed	Approved as proposed
	3. Issuance of the 2024 report of internal control system effectiveness assessment and Declaration of Internal Control System.	☑	None	Approved as proposed	Approved as proposed
	4. The Company's 2025 CPA appointment, remuneration, independence and suitability assessment.	☑	None	Approved as proposed	Approved as proposed
2025.11.05
6th Meeting of the 2nd Session	1. The Company proposes the list of grantees, units granted, and subscribable shares of the 2025 1st employee stock option certificates.	☑	None	Approved as proposed	Except for directors recused for conflicts of interest, the proposal was unanimously approved as proposed by all other attending directors.
	2. Amendments to the Company’s “Procedures for Acquisition and Disposal of Assets.”	☑	None	Approved as proposed	Approved as proposed
	3. Amendments to the Company’s “Internal Control System” and “Internal Audit Implementation Rules”.	☑	None	Approved as proposed	Approved as proposed

(2) Except for the above matters, other resolutions passed by more than two-thirds of all directors but not approved by the Audit Committee: None.

Status of recusal by independent directors from proposals with conflicts of interest: None.

Communication between independent directors, internal audit officer and accountants (should include matters, methods, and results of communication with independent directors regarding the Company's financial, business conditions):

(1) In accordance with laws and regulations, the Company has established an internal audit unit directly under the Board of Directors to reasonably ensure effective implementation of internal control systems. Internal audit reports are submitted at Board meetings, and internal audit results and improvements are sent to each independent director every month, so the Company's independent directors can stay updated on the Company's operational risks and improvements.

(2) The Company's independent directors meet separately with the internal audit officer once per quarter to review the implementation status and follow-up on deficiencies of internal audit operations. The Company regularly discloses meeting status on its website.

(3) The Company's independent directors, internal audit officer, and accountants hold separate meeting at least once per year to communicate regarding the Company's financial report audits, financial and business conditions, and important accounting issues. If any major incidental irregularity occurs, a meeting may be called at any time. The Company regularly discloses meeting status on its website.

(4) After each quarterly financial report audit (review), the Company's CPA attends Audit Committee meetings to communicate the audit (review) status and results with independent directors. The Company regularly discloses meeting status on its website.

(5) After completing each quarterly financial report audit (review), the Company's CPA informs the independent directors in writing, with content including: type of audit report for this audit, major adjusting entries and unadjusted differences, related party transactions, significant accounting estimates, fraud and non-compliance, group financial report audit, significant subsequent events, client representation letter, material weaknesses in internal control, matters on which the CPA disagrees with management, and the corporate governance department's suggestions for the CPA firm regarding cooperation on current and future audits. This written communication is carried out regularly, and the notification status is disclosed on the Company's website.

Professional qualifications and experience of Audit Committee members: Please refer to page 12 for the professional qualifications and experience of the independent directors who comprise the entire Audit Committee.
Annual key tasks of the Audit Committee:

No.	Key tasks	Implementation items in 2025
1	Formulation or amendment of internal control systems.	✓
2	Effectiveness assessment of internal control systems and issuance of Declaration of Internal Control System.	✓
3	Formulation or amendment of procedures for handling major financial business activities including acquisition or disposal of assets, engaging in derivatives trading, extending loans to others, and endorsements or guarantees for others.	✓

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No.	Key tasks	Implementation items in 2025
4	Matters involving directors' own interests.	-
5	Major asset or derivatives transactions.	-
6	Major extension of loans, endorsements or provision of guarantees.	-
7	Offering, issuance or private placement of equity-type securities.	✓
8	Appointment, dismissal, or compensation of certified public accountant.	✓
9	Appointment or discharge of financial, accounting, or internal audit officers.	-
10	Discuss the annual financial report jointly signed or stamped by the chairman, manager, and accounting officer, and prepare an audit committee's review report once agreed by the audit committee.	✓
11	Other major matters prescribed by laws or regulations or stipulated by the Company.	✓

Status of Audit Committee operations in the most recent year and as of the date of printing of the annual report:

Date	Reported matters and motions	Resolution results	The Company's Response to the Audit Committee's Opinions
2025.03.05
3rd Meeting of the 2nd Session	1. The Company's 2024 business report and financial report.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	2. The Company's 2024 earnings distribution plan.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	3. Issuance of the 2024 report of internal control system effectiveness assessment and Declaration of Internal Control System.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	4. The Company's 2025 CPA appointment, remuneration, independence, and suitability assessment.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
2025.05.05
4th Meeting of the 2nd Session	1. The Company's 2025 Q1 consolidated financial report.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
2025.08.04
5th Meeting of the 2nd Session	1. The Company's 2025 Q2 consolidated financial report.	Approved without objection	Submitted to and approved by attending directors at the Board meeting

Date	Reported matters and motions	Resolution results	The Company's Response to the Audit Committee's Opinions
2025.11.05
6th Meeting
of the
2nd Session	1. The Company proposes the list of grantees, units granted, and subscribable shares of the 2025 1st employee stock option certificates for employees who do not hold managerial positions or serve concurrently as directors of the Company.	Approved without objection	Submitted to and approved as submitted by all other attending directors without objection, excluding those who recused themselves according to regulations.
	2. The Company's 2025 Q3 consolidated financial report.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	3. Amendments to the Company’s “Procedures for Acquisition and Disposal of Assets.”	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	4. Amendments to the Company’s “Internal Control System” and “Internal Audit Implementation Rules”.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
2026.03.11
7th Meeting
of the
2nd Session	1. The Company's 2025 business report and financial statements.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	2. The Company's 2025 earnings distribution plan.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	3. The Company's 2025 issuance of new shares from capitalization of earnings	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	4. Issuance of the 2025 report of internal control system effectiveness assessment and Declaration of Internal Control System.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	5. The Company's 2026 CPA appointment, remuneration, independence and suitability assessment.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	6. Amendments to the Company’s “Internal Control System” and “Internal Audit Implementation Rules”.	Approved without objection	Submitted to and approved by attending directors at the Board meeting

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

Evaluation item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
1. Has the Company established and disclosed its corporate governance best-practice principles based on the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies?	☑		The Company has established its "Corporate Governance Best-Practice Principles" based on the "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies". Passed by the Board of Directors on March 19, 2015, the latest amended version was approved on November 7, 2024, and disclosed on the Stakeholders section of the Company's website.	In compliance with the Principles.
2. Shareholding structure & shareholder rights
(1) Has the Company established internal procedures for handling shareholder suggestions, queries, disputes, and legal actions, and implemented accordingly?
(2) Does the Company have a list of its major shareholders and the ultimate control persons of such major shareholders?
(3) Has the Company established and implemented risk management and firewall mechanisms for dealings with related parties?	☑
☑
☑		(1) The Company's management division is the dedicated unit for handling shareholder-related matters, and a spokesperson system has been established.
(2) The shareholder registry provides the list of major shareholders periodically.
(3) Handled in accordance with the Company's "Corporate Governance Best-Practice Principles", "Procedures for Transactions with Related Parties", "Subsidiary Monitoring Procedures", and "Procedures for Related Party Transactions Between Affiliated Enterprises".	(1) In compliance with the Principles.
(2) In compliance with the Principles.
(3) In compliance with the Principles.

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(4) Has the Company established internal rules prohibiting insider trading on undisclosed information in the market?	☑		(4) Handled in accordance with the Company's "Ethical Corporate Management Best Practice Principles" and "Procedures for Prevention of Insider Trading". The 2025 "Promotion of Ethical Corporate Management and Sustainable Development " was held on May 8, 2025, and November 13, 2025, with content including the "Ethical Code of Conduct", "Major Internal Information Handling Procedures", "Ethical Corporate Management Best Practice Principles", "Procedures for Prevention of Insider Trading", and "Sustainable Development Best Practice Principles". Each session lasted 30 minutes, with 20 and 19 attendees, respectively. Relevant information announced in the Company's Market Observation Post System.	(4) In compliance with the Principles.
3. Composition and Responsibilities of the Board of Directors
(1) Has the Company established a diversification policy for the composition of its Board of Directors and has it implemented accordingly?
(2) Other than the Remuneration Committee and the Audit Committee that are required by law, has the Company voluntarily established other board committees?	☑	☑	(1) The Company has formulated the "Corporate Governance Best Practice Principles" and established a board member diversity policy that is fully implemented. Please refer to page 14.
(2) No plans at present to establish other voluntary board committees. Will consider based on operational conditions and actual needs.	(1) In compliance with the Principles.
(2) No voluntary establishment of other functional board committees.

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Evaluation item	Implementation status
	Yes	No	Summary description
(3) Has the Company established methodology for evaluating the performance of its Board of Directors, on an annual basis, reported the results of performance assessment to the Board of Directors, and used them as reference in determining compensation for individual directors and their nomination for re-election?	☑		(3) The Company has established "Regulations Governing the Performance Appraisal of the Board of Directors". The latest amended version was approved by the Board of Directors on November 4, 2020. The evaluation criteria are set according to the Company's operations and needs:
1. The Board's performance evaluation shall cover at least the following five aspects: degree of participation in the Company's operations, improvement of quality of Board decisions, composition and structure of the Board of Directors, election and continuing education of directors, and internal controls. Evaluations are carried out annually after the end of each year by the Company's corporate governance unit or an external professional independent institution engaged by the Company.
2. Board member (self or peer) performance evaluations shall cover at least the following six aspects: understanding of Company objectives and missions, awareness of Board member responsibilities, degree of participation in company operations, managing internal relationships and communication, professionalism and continuing education of directors, and internal controls. Evaluations are carried out annually after the end of each year in the form of self-evaluations by Board members.
3. Functional committee performance evaluations shall cover at least the following five aspects: degree of participation in the Company's operations, awareness of functional committee responsibilities, improving quality of functional committee	(3) In compliance with the Principles.

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Evaluation item	Implementation status	Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description

4. The Company's 2025 Board self-evaluation has been completed, with overall evaluation result of 98 points after conversion for the Board and 96-99 points after conversion for individual Board members. The results were reported at the March 11, 2026 Board meeting and used as the basis for determining 2025 director compensation and considering 2027 Board director re-election nominations.
Aspects/items in need of improvement and improvement plans or actions after evaluation are as follows:
Aspect	Evaluation item	Result
Board Member Selection and Ongoing Training	The Company has established a rigorous and transparent procedure for the selection of directors, along with a succession plan.	Score: 4/5
The Company has adopted the “Rules for Election of Directors” and intends to develop successors based on the needs of the Board.	Successor development will be actively pursued in accordance with the Board’s composition requirements.

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Evaluation item	Implementation status	Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description

5. The Company's 2025 Audit Committee self-evaluation has been completed, with overall evaluation result of 99 points after conversion, and submitted to the March 11, 2026 Board meeting for reporting.
Aspects/items in need of improvement and improvement plans or actions after evaluation are as follows:
Aspect	Item	Result
Level of participation in company operations	Every member makes an effective contribution at the Audit Committee meetings.	Score: 4/5
The Company's Audit Committee members express their views and suggestions on each proposal in a timely manner and reach consensus for resolutions.	Ask that every member expresses views and suggestions on each proposal.
6. The Company's 2025 Remuneration Committee self-evaluation has been completed, with overall evaluation result of 99 points after conversion, and submitted to the March 11, 2026 Board meeting for reporting.

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Evaluation item	Implementation status	Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description

Aspect	Item	Result
Level of participation in company operations	Every member makes an effective contribution at the Remuneration Committee meetings.	Score: 4/5
The Company's Remuneration Committee members express their views and suggestions on each proposal in a timely manner and reach consensus for resolutions.	Ask that every member expresses views and suggestions on each proposal.
(4) Does the Company regularly evaluate the independence of CPAs?	☑

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			exist no commercial associations or familial ties with the Company's directors and managers that might undermine independence. Furthermore, there is an unequivocal refusal of significant gifts or financial inducements.

Furthermore, the auditing accountants have instituted requisite independence and conflict of interest protocols for the audit team, with no breaches or lingering conflicts noted. They have also issued a formal declaration of independence, subjected to scrutiny by the Board of Directors on March 11, 2026.

Additionally, for the appointment, remuneration, independence, and eligibility assessment of the Certified Public Accountants for 2026, the Company conducted reviews in accordance with Statements on Auditing Standards No. 10 and the Certified Public Accountant Act. These assessments were supplemented by consultation of the Audit Quality Indicators (AQI) report for the period from June 1, 2024, to May 31, 2025, prepared by Deloitte & Touche, and the independence declaration issued in February 2026. The Board of Directors reviewed these documents on March 11, 2026.

The Board's evaluation of the independence and suitability of the certified public accountant in the most recent three years: | |

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Evaluation item	Implementation status					Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			Evaluation date	2024.02.27	2025.03.05	2026.03.11
			Evaluation result	No circumstances discovered whereby the Company's certified public accountant or related persons violated independence or were unsuitable.
4. Has the listed company established the appropriate number of corporate governance personnel and designated chief corporate governance officers to be in charge of corporate governance affairs (including but not limited to providing information required for business execution by directors and supervisors, assisting directors and supervisors in complying with laws and regulations, handling matters relating to board meetings and shareholders meetings pursuant to laws, and producing minutes of board meetings and shareholders meetings)?	☑		The management department of the Company serves as the dedicated unit for corporate governance affairs. One person each from the Administration Div., HR Div., and general affairs Div., and two people from the finance department are responsible for promoting relevant tasks. Chen, Hsieh-Li, associate manager of the Administration Div., has over 10 years of experience in financial management in public companies. She was appointed as the chief corporate governance officer by the board of directors on May 4, 2023. Please refer to page 55 for the main responsibilities and implementation status of the corporate governance unit.			In compliance with the Principles.
5. Has the Company established a communication channel with stakeholders (including but not limited	☑		The Company website has a stakeholder section with contact inboxes for spokesperson, deputy spokesperson, shareholders, employees,			In compliance with the Principles.

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
to shareholders, employees, customers, and suppliers) and created a stakeholder section on its company website? Does it respond appropriately to stakeholders' concerns regarding corporate social responsibility issues?			customers, and suppliers to maintain proper communication channels with stakeholders.
6. Has the Company appointed a professional shareholder services agent to handle shareholders meeting matters?	☑		The Company has appointed Yuanta Securities Co., Ltd. as the shareholder services agent to handle shareholders meeting matters.	In compliance with the Principles.
7. Information disclosure
(1) Does the Company have a corporate website to disclose financial business and corporate governance information?
(2) Does the Company adopt other information disclosure methods (e.g. setting up an English website, appointing designated personnel responsible for collecting and disclosing corporate information, implementing a spokesperson system, uploading video recordings of investor	☑
☑		(1) The Company’s website: https://www.rubytech.com.tw

(2) The Company has established the "Procedures for Handling Material Inside Information" and appointed spokesperson and deputy spokesperson to oversee information collection and disclosure.
Other information is disclosed on the "Market Observation Post System" and company website as required by relevant laws and regulations for investors' reference. | (1) In compliance with the Principles.

(2) In compliance with the Principles. |

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Evaluation item	Implementation status
	Yes	No	Summary description
conferences to the corporate website)?
(3) Does the Company publish and file its annual financial reports within two months after the end of each fiscal year, and publish and file its Q1, Q2, Q3 financial reports and monthly operation status before the specified deadline?		☑	(3) The Company publishes and files the Q1, Q2, Q3 and annual financial reports and monthly operation status within the specified deadlines.
Early publication and filing of financial information will be considered in the future depending on needs and adjustments to operational workflows.	(3) The Company publishes and files according to the specified deadlines, without early publication.
8. Other important information to better understand the Company's corporate governance operation (including but not limited to employee rights and benefits, investor relations, supplier relations, implementation of risk management policies and risk measurement standards, status of customer policy implementation, and purchase of D&O insurance)?	☑		(1) Employee rights and employee care
In addition to establishing a "Labor Retirement Reserve Supervisory Committee" and formulating employee retirement measures and setting up a retirement reserve account in accordance with laws and regulations, the Company also holds regular labor-management meetings each quarter to improve labor relations and safeguard employee rights. For other employee welfare measures, training, implementation status, please refer to page 149 and the Stakeholders section of the Company's website.

(2) Investor relations and stakeholder rights
To strengthen corporate governance systems, the Company has formulated "Corporate Governance Best-Practice Principles" to strengthen director functions. In accordance with relevant laws and regulations, the Company discloses financial and operational | (1) In compliance with the Principles.

(2) In compliance with the Principles. |

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			status on the Market Observation Post System. The Company maintains open communication channels through setting up a website and spokesperson/deputy spokesperson system, customer/supplier mailboxes, etc. to respect and safeguard the legitimate rights and interests of banks, employees, consumers and investors, providing highly transparent financial and business information to investors and stakeholders.

(3) Supplier relationships
The Company has formulated "Internal Control System - Procurement Workflow" to rigorously control procurement quality and ensure procured materials meet required specifications. The Company maintains open communication channels with suppliers, safeguarding the rights and interests of both parties based on mutual trust and benefit.

(4) For information on 2025 director training, please refer to page 59.

(5) Implementation status of risk management policies and risk measurement standards
To strengthen risk management mechanisms, the Company analyzes, tracks, and responds to events that may pose high risks to operational objectives. For relevant risk management policies, organizational structure and related risk control operations, please refer to page161. | (3) In compliance with the Principles.

(4) In compliance with the Principles.

(5) In compliance with the Principles. |

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
			(6) The Company values customer rights and has formulated written procedures including "Customer Complaint Handling", "Customer Satisfaction Survey Management", "Customer Service Management" and "Continuous Improvement Operations" to resolve customer issues as quickly as possible.

(7) The Company places great emphasis on personal data protection and has established the "Personal Data Protection Management Regulations," with awareness training sessions held annually. In 2025, training sessions were conducted on May 8 and November 13, each session lasted 30 minutes, with 20 and 19 attendees, respectively.

(8) Starting in 2007, the Company has purchased D&O liability insurance annually to safeguard shareholder rights. The 2025 coverage was reported at the August 4, 2025 Board meeting.

(9) For information on 2025 manager training and continuing education on corporate governance, please refer to page 61. | (6) In compliance with the Principles.

(7) In compliance with the Principles.

(8) In compliance with the Principles.

(9) In compliance with the Principles. |
| 9. Regarding the Corporate Governance Evaluation results published by the Corporate Governance Center of the Taiwan Stock Exchange in the most recent year, please explain improvements and priority enhancement items:

(1) Improvements made based on the 12th Corporate Governance Evaluation results: None. | | | | |

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(2) Priority enhancement items based on the 12th Corporate Governance Evaluation results that are yet to be improved:

No.	Assessment indicator	Planned improvement measures
1.1	Does the Company report the remuneration of directors, including remuneration policies, standards, and packages, to its shareholders at a general meeting?	The Company will evaluate feasibility of reporting director remuneration including policies, content and amounts at the shareholder meeting.
1.3	Did the Chairman, more than half of the directors, and the convener of the Audit Committee attend the Annual General Meeting in person, and was the attendance list disclosed in the meeting minutes?	The convener of the Audit Committee attended the Annual General Meeting in person.
1.5	Has the Company established specific measures to enhance corporate value, submitted them to the Board of Directors, and disclosed relevant information in the "Corporate Value Enhancement Plan" section on the MOPS?	The Company will evaluate feasibility of establishing a "Corporate Value Enhancement Plan".
1.6	Does the Company hold its general shareholder meeting before the end of May each year?	The Company will evaluate feasibility of internal workflow schedules.
1.15	Has the Company established internal rules prohibiting company insiders from trading securities using undisclosed information in the market, and disclosed the rules on the Company website? Do the rules encompass directors not trading their company's shares during the thirty-day period before the publication of annual reports, and during the fifteen-day period before the publication of quarterly reports, and require disclosure of implementation status?	The Company's Corporate Governance Best-Practice Principles recommend insiders refrain from trading during blackout periods, not meeting the full score criteria. Will evaluate feasibility of compulsory prohibitions on trading during blackout periods.
2.3	The chairman of the Company does not act as the president or other equivalent position (the highest managerial officer).	Considering operational needs, the Company's Chairman also serves as Chief Executive.
2.14	Has the Company established a Nomination Committee consisting of at least three members, with more than half of whom are independent directors, and chaired by an independent director who also serves as the convener? Are the composition, duties, and operations disclosed?	The Company will evaluate the necessity of establishing a Nomination Committee.

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No.	Assessment indicator	Planned improvement measures
2.22	Does the Company supervise risk management by functional committees at the level of the Audit Committee or Board of Directors (e.g., Risk Management Committee), and established risk management policies and procedures approved by the Board of Directors, disclosed the scope of risk management, organizational structure, risk management procedures, and operations, and reported to the Board of Directors at least once annually?	The Company will evaluate feasibility of formulating risk management policies and procedures.
2.23	Do the Company's Regulations for Performance Appraisal of the Board of Directors require external evaluations at least once every three years, and has an evaluation been conducted, with implementation status and results disclosed on the Company website or in the annual report, for the evaluated year or within the past two years?	The Company will evaluate the necessity of conducting external evaluations.
2.27	Has the Company formulated intellectual property management plans linked to operational objectives and disclosed implementation status on the Company website or in annual reports, reporting to the Board of Directors at least once annually?	The Company will evaluate feasibility of formulating intellectual property management plans linked to operational objectives.
3.13	Does the Company voluntarily disclose individual remuneration of directors in its annual reports?	The Company will evaluate necessity of voluntary disclosure.
3.20	Has the Company held (accepted invitations for) at least two investor conferences and posted the presentation materials on MOPS in the most recent year, with at least three months between the two conferences?	The Company will evaluate necessity of voluntarily holding at least two investor conferences.
3.21	Does the Company voluntarily disclose individual remuneration of the CEO and vice presidents in annual reports?	The Company will evaluate necessity of voluntary disclosure.
4.5	Has the CSR reports prepared by the Company obtained third-party verification ?	The Company will prepared CSR reports in 2024, and will evaluate feasibility of obtaining certifications.
4.7	Has the Company uploaded English versions of sustainability reports to the MOPS website?	The Company has not prepared English versions of CSR reports.

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No.	Assessment indicator	Planned improvement measures
4.17	Is the Company's supplier management policy disclosed on its website, annual report, or sustainability report, mandating supplier compliance with environmental protection, occupational safety and health, and labor rights standards, as well as providing data on implementation?	The Company will evaluate the development of pertinent regulations for collaboration with suppliers.
4.19	Does the Company invest in energy-saving or green energy-related machinery and equipment, Taiwan's green energy industry (such as renewable energy power plants), or issue/invest in sustainable development bonds for green or social impact investment plans, and do the investments and benefits get disclosed?	The Company will evaluate the feasibility of investing in energy-saving or green energy machinery, equipment, or industries.
4.22	Does the Company invest in supporting the development of domestic culture and disclose the methods and results on its website, annual report, or sustainability report?	The Company will assess the possibility of investing in supporting the development of domestic culture.
4.23	Does the Company disclose a policy linking executive compensation to ESG-related performance evaluation?	The feasibility of disclosing a policy linking executive compensation to ESG-related performance evaluation will be evaluated.
4.28	Has the Company established an energy management plan and disclosed its implementation status on the corporate website, in the annual report, or in the sustainability report?	The Company will evaluate the feasibility of establishing an energy management plan.
4.29	Has the Company introduced internal carbon pricing to estimate the impact of climate change on its finances and business operations?	The Company will evaluate the feasibility of introducing internal carbon pricing.

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No.	Assessment indicator	Planned improvement measures
4.31	Does the Company regularly conduct employee satisfaction surveys and disclose the implementation status and improvement plans?	The Company will evaluate the feasibility of conducting regular employee satisfaction surveys.
4.33	Has the Company established policies and grievance procedures for protecting consumer or customer rights regarding issues such as health and safety, marketing, or labeling of products and services?	The Company will evaluate the feasibility of establishing consumer protection policies and grievance procedures.
4.34	Has the Company established a Board-level Sustainability Committee consisting of at least three members with professional sustainability expertise, with at least one director involved in supervision, and disclosed its composition, duties, and operations?	The Company will evaluate the necessity of establishing a Board-level Sustainability Committee.
Additional Bonus Question	Does the Company demonstrate excellent performance in corporate governance, or have concrete achievements in promoting corporate governance?	The Company will implement if necessary.

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Other matters that require reporting:

(1) Operation of internal audit:

a. Communication between the Company's internal audit officers and independent directors and accountants:

1) In accordance with laws and regulations, the Company has established an internal audit unit directly under the Board of Directors to reasonably ensure effective implementation of internal control systems. Internal audit reports are submitted at Board meetings, and internal audit results and improvements are sent to each independent director every month, so the Company's independent directors can stay updated on the Company's operational risks and improvements.

2) The Company's internal audit unit meets separately with the independent directors once per quarter to review the implementation status and follow-up on deficiencies of internal audit operations. The Company regularly discloses meeting status on its website.

3) The Company's independent directors, internal audit officers, and accountants hold separate meetings at least once per year to communicate regarding the Company's financial report audits, financial and business conditions, and important accounting issues. If any major incidental irregularity occurs, a meeting may be called at any time. The Company regularly discloses meeting status on its website.

4) After each quarterly financial report audit (review), the Company's CPA communicates the audit (review) status and results with the internal audit unit. The internal audit unit also communicates with the accountants on financial conditions from time to time. The Company regularly discloses meeting status on its website.

b. The appointment, performance evaluation, and compensation of the Company's internal audit staff are authorized by Director Lin, Kuan-Ming who oversees the internal audit staff, and finalized by the Chairman.

(2) The Company's Administration Div. is the coordinating unit responsible for promoting corporate governance. The main responsibilities and implementation status of the corporate governance unit are as follows:

No.	Main responsibilities	Implementation status
1	Formulate various corporate governance regulations and procedures in accordance with laws for compliance.	The Company has formulated various corporate governance regulations and procedures, and regularly reviews whether amendments are necessary.
(1) Implementation in 2025:
a. The proposed amendments to certain provisions of the “Sustainable Development Best Practice Principles” have been approved by the Board of Directors.
b. The "Articles of Incorporation" were approved at the 6th meeting of the 16th session of the Board of Directors on March 5, 2025, and are submitted to the 2025 annual shareholders' meeting for discussion.

No.	Main responsibilities	Implementation status
		(2) Implementation as of the annual report printing date in 2026: The 'Articles of Incorporation' were approved at the 13th meeting of the 16th session of the Board of Directors on March 11, 2026, and will be submitted to the 2026 Annual General Meeting for discussion.
2	Handle company registration and changes in registration.	Due to the capital reduction via treasury stock cancellation, increase in total authorized capital, amendments to the Articles of Incorporation, and dismissal of directors in 2025, the changes in company registration were completed on June 10, July 15, and November 18, 2025, respectively."
3	Handle matters related to Board of Directors and shareholder meetings in accordance with laws and assist the Company in complying with relevant laws and regulations for Board of Directors and shareholder meetings.	In 2025, 1 shareholder meeting and 7 Board meetings were held, with schedule as follows:
		Meeting nature	Meeting date
		Shareholder meeting	6/10
		Board meeting	3/5	5/5	6/10	8/4	10/13	11/5	12/15
		(1) Relevant information including the shareholder meeting notice, meeting handbook, and supplementary meeting materials were announced on the Market Observation Post System and disclosed on the Company's website as required. (2) Notifications for Board meetings were sent to directors 7 days in advance, and meeting agenda and materials were sent together with the meeting notice.
4	Prepare minutes for Board of Directors and shareholder meetings.	Resolutions of the Board of Directors and shareholder meetings were documented in meeting minutes affixed with the seals of the chairman and minute taker as required. Board meeting minutes were distributed to directors within 20 days after the meeting. Shareholder meeting minutes were announced on the Market Observation Post System and posted on the Company's website within 20 days after the meeting for investor reference.

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No.	Main responsibilities	Implementation status
5	Provide directors with necessary information for performing their duties and updates on the most recent law and regulation developments related to company operations to assist directors in complying with laws and regulations.	(1) Financial and business reports are provided at every Board meeting with the most recent financial and operational status, including financial analysis and industry comparisons, along with review of budget achievement status. Accountants also attend Board meetings regularly. In addition to explaining audit results, accountants also provide introduction to the most recent laws and regulations related to operations for communication and exchange with directors.
(2) New directors elected at the June 19, 2024 shareholder meeting (including re-elected incumbent directors) were provided a "Director/Supervisor Laws and Regulations Guidebook" to ensure they fully understand relevant regulations on insider shareholding management under the Securities and Exchange Act.
(3) The Company provides directors with diverse continuing education on corporate governance and strengthens their expertise and capabilities. The 2025 training courses are as follows:
		Training date	Organizer	Course name	Hours
		2025.05.05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3
		2025.11.05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3
6	Matters related to investor relations.	The Company has set up an Investor Relations section on the corporate website, with dedicated personnel for ongoing maintenance and updates. Contact channels are provided via telephone and email mailbox for investors to connect with the Company anytime.
7	Implement corporate governance evaluation indicators.	Corporate governance operations are reviewed and implemented annually based on the latest corporate governance evaluation indicators. The 2025 corporate governance evaluation result is 36% to 50%. Additionally, for companies with a market value below $5 billion, the ranking is in the 21% to 40% range.

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No.	Main responsibilities	Implementation status
8	Other matters stipulated in the Articles of Incorporation or contracts	Assisted the Board in performing its responsibilities in 2025 as follows:
		No.	Responsibilities of the Board of Directors	Compliance with Articles of Incorporation
		(1)	Establishment, adjustment and abolition of major Company organizations.	-
		(2)	Preparation of business reports.	✓
		(3)	Review of budgets and final accounts.	✓
		(4)	Appointment and discharge of general manager and other important personnel.	-
		(5)	Proposals for distribution of earnings or making up losses.	✓
		(6)	Proposals for capital increase or decrease.	✓
		(7)	Reporting circumstances whereby the Company may suffer material damage.	-
		(8)	Formulation and amendment of major regulations and procedures.	✓
		(9)	Appropriation of director compensation.	✓
		(10)	Distribution of shareholder dividends.	✓

Implementation of director training:

Title	Name	Date first elected	Training date(s)		Organizer	Course name	Training Hours	Fulfillment of requirements (Note)
			Start	End
Chairman	Lin, Kuan-Ming	2024/06/19	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes
Representative	Lin, Ling-Yu	2024/06/19	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes
Representative	Chiu, Chi-Hsin	2024/06/19	2025/06/06	2025/06/06	Taiwan Corporate Governance Association	New Perspectives on Enterprise Risk Management: Integrating Strategic Development and ESG	3H	Yes
			2025/12/05	2025/12/05		Corporate Governance: Adapting to Trends in Anti-Money Laundering, Counter-Terrorist Financing, and Financial Sanctions	3H	Yes
Director	Tung, Chin-Chuan	2024/06/19	2025/09/26	2025/09/26	Taiwan Corporate Governance Association	Cybersecurity Governance and Management Under Geopolitical Influence	3H	Yes
			2025/09/26	2025/09/26		Current Global Economic Outlook and the Impact of Trump's New Policies	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes

Title	Name	Date first elected	Training date(s)		Organizer	Course name	Training Hours	Fulfillment of requirements (Note)
			Start	End
Director	Young, Yu-Che	2024/06/19	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes
Independent Director	Huang, Chin-Tan	2024/06/19	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes
Independent Director	Wu, Yung-Sheng	2024/06/19	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes
Independent Director	Wang, Chi-Chiao	2024/06/19	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes
Independent Director	Lin, Hsin-Piao	2024/06/19	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H	Yes
			2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H	Yes

Note : Refers to whether training fulfills requirements for training hours, scope, system, arrangement, and information disclosure stipulated in the "Directions for the Implementation of training for Directors and Supervisors of TWSE and TPEx Listed Companies".

Implementation of manager training on corporate governance:

Title	Name	Training date(s)		Organizer	Course name	Training hours
		Start	End
Chief Executive	Lin, Kuan-Ming	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H
		2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H
President	Young, Yu-Che	2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H
		2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H
Assistant Vice President of Administration Div. And Assistant Vice President of Financial Div. and Corporate Governance Officer	Chen, Yun-Chen	2025/09/11	2025/09/11	Accounting Research and Development Foundation	Promoting Corporate Sustainability Through Risk Management	6H
		2025/05/05	2025/05/05	Taiwan Corporate Governance Association	Current Global Economic and Financial Trends	3H
		2025/11/05	2025/11/05		Analysis of International Tax Trends and Trump 2.0 Tax Policies	3H

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(4) If the Company has set up a Remuneration Committee or Nomination Committee, disclose its composition and operations:

a. Information of Remuneration Committee members

April 30, 2026

Identity	Name Criteria	Professional qualifications and experience	Status of independence	Concurrent service on Remuneration Committee of other public companies Number of Remuneration Committee seats held
Independent director (Convener)	Huang, Chin-Tan	Please refer to page 12 for their professional qualifications and experience and page 17 for information about the Board's independence.	2
Independent director	Wu, Yung-Sheng			2
Independent director	Wang, Chi-Chiao			0

b. Operations of Remuneration Committee

1) The Company's Remuneration Committee has 3 members.
2) Term of the current committee members: June 19, 2024, to June 18, 2027. Number of Remuneration Committee meetings held in the most recent fiscal year: 5 (A). Member qualifications and attendance status:

Title	Name	Actual Attendance (B)	Attendance By Proxy	Actual Attendance Rate (B/A)	Note
Convener	Huang, Chin-Tan	5	0	100%	Reelected on Jun. 19, 2024
Committee member	Wu, Yung-Sheng	5	0	100%	Reelected on Jun. 19, 2024
Committee member	Wang, Chi-Chiao	5	0	100%	Reelected on Jun. 19, 2024
Other matters that require reporting: 1. If the Board of Directors does not adopt or modifies the Remuneration Committee's recommendations, the meeting date, session, agenda, Board resolution results and the Company's handling of the Remuneration Committee's opinions shall be specified (if the remuneration passed by the Board exceeds the Remuneration Committee's recommendations, the discrepancies and reasons shall be specified): None. 2. For Remuneration Committee resolutions with objections or qualified opinions from members that are recorded or with written statements, the meeting date, session, agenda, all members' opinions and handling of member opinions shall be specified: None.

3) Discussion matters and resolution results of the most recent and as of the annual report printing date Remuneration Committee meetings:

Date	Remuneration Committee discussion matters	Resolution results	The Company's Response to the Remuneration Committee's Opinions
2025.01.21
4th Meeting of the 6th Session	1. Regular review of the "Remuneration Committee Charter" proposal.	Approved without objection	-
	2. Regular review of the Company's directors and managers' performance evaluation standards, annual and long-term performance objectives, and the policies, systems, standards and structures of remuneration.	Approved without objection	-
	3. Regular review of evaluation indicators for the Company's Board of Directors performance evaluation.	Approved without objection	-
	4. Regular review of the content and amounts for the individual remuneration for Company's directors and managers based on the results of evaluating achievement of performance targets according to the performance evaluation criteria.	Approved without objection	-
	5. The proposal of the Company's 2024 year-end bonus distribution amount.	Approved without objection	-
2025.03.05
5th Meeting of the 6th Session	1. The Company's 2024 director compensation distribution plan.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
	2. The Company's 2024 employee compensation distribution plan.	Approved without objection	Submitted to and approved by attending directors at the Board meeting
2025.08.04
6th Meeting of the 6th Session	1. The Company's 2024 employee compensation distribution plan.	Approved without objection	Submitted to and approved as submitted by all other attending directors without objection, excluding those who recused themselves according to regulations.

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Date	Remuneration Committee discussion matters	Resolution results	The Company's Response to the Remuneration Committee's Opinions
2025.11.05
7th Meeting of the 6th Session	1. The Company proposes the list of grantees, units granted, and subscribable shares of the 2025 1st employee stock option certificates for employees who hold managerial positions or serve concurrently as directors of the Company.	Approved without objection	Submitted to and approved as submitted by all other attending directors without objection, excluding those who recused themselves according to regulations.
2025.12.15
8th Meeting of the 6th Session	1. The Company's 2025 year-end bonus distribution plan.	Approved without objection	Submitted to and approved as submitted by all other attending directors without objection, excluding those who recused themselves according to regulations.
2026.01.23
9th Meeting of the 6th Session	1. Regular review of the “Remuneration Committee Charter” proposal.	Approved without objection	-
	2. Regular review of the Company's directors and managers' performance evaluation standards, annual and long-term performance objectives, and the policies, systems, standards and structures of remuneration.	Approved without objection	-
	3. Regular review of evaluation indicators for the Company's Board of Directors performance evaluation.	Approved without objection	-
	4. Regular review of the content and amounts for the individual remuneration for Company's directors and managers based on the results of evaluating achievement of performance targets according to the performance evaluation criteria.	Approved without objection	-
	5. The proposal of the Company's 2025 year-end bonus distribution amount.	Approved without objection	-

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Date	Remuneration Committee discussion matters	Resolution results	The Company's Response to the Remuneration Committee's Opinions
2026.03.11
10th Meeting
of the
6th Session	1. The Company's 2025 director compensation distribution plan.
2. The Company's 2025 employee compensation distribution plan.	Approved without objection
Approved without objection	Submitted to and approved by attending directors at the Board meeting
Submitted to and approved by attending directors at the Board meeting

c. Duties of the Remuneration Committee

The Committee shall exercise the following duties with the care of a good administrator and submit recommendations to the Board of Directors for discussion:

1) Regularly review the Company's "Organization Rules of the Remuneration Committee" and propose amendments.

2) Formulate and regularly review the Company's performance evaluation criteria, annual and long-term performance targets for directors and managers, along with associated remuneration policies, systems, standards and structure, and disclose the performance evaluation criteria in the annual report.

3) Regularly evaluate the achievement of performance targets by the Company's directors and managers and determine the individual remuneration content and amounts based on the results of performance evaluations according to the criteria. The individual performance evaluation results of directors and managers and the correlation of the content and amount of individual compensation to the results of the performance evaluation results shall be disclosed in the annual report, and reported at the shareholder meeting.

4) Regularly review the indicators for the Company's Board of Directors performance evaluation to determine whether they are appropriate for and suited to the Company's operations and needs when conducting performance evaluations.

d. Implementation of Remuneration Committee

In accordance with Article 7 of the "Organization Rules of the Remuneration Committee" and the "Regulations Governing the Performance Appraisal of the Board of Directors", the Company's Remuneration Committee regularly reviews the following each year:

1) Regular review of the Company's "Organization Rules of the Remuneration Committee".

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2) Regular review of the Company's performance evaluation criteria, annual and long-term performance targets for directors and managers, along with associated remuneration policies, systems, standards, and structure.

The performance evaluation criteria and remuneration for the Company's directors and managers are handled in accordance with the following associated regulations:

Title	Performance evaluation criteria	Remuneration policies, systems, standards and structure
Directors	Regulations Governing the Performance Appraisal of the Board of Directors	Article 22 of Articles of Incorporation:
The Board of Directors is authorized to resolve the compensation for all directors based on the extent of their participation in the Company's operations and contribution value, and with reference to normal levels in the same industry.

Article 26 of Articles of Incorporation:
If the Company records profit in a fiscal year (referring to net profit before tax, after deducting employee and director compensation), 7%~10% shall be set aside as employee compensation and no more than 2% as director compensation.
However, if the Company still has accumulated losses (including adjustments to unappropriated retained earnings), the amount to offset losses shall be retained in advance.
From the aforementioned employee compensation, no less than 5% shall be allocated as compensation for entry-level employees.
The employee compensation may be distributed in cash or stock, and the recipients may include employees of subsidiaries meeting the conditions stipulated by the Board of Directors.
The distribution of employee and director compensation shall be resolved by the Board of Directors and reported to the shareholders' meeting. |
| Managers | Performance Appraisal Regulations | Remuneration Management Regulations, Year-End Bonus Distribution Regulations, Regulations for Management of Personnel Dispatched to Mainland China, and the employee compensation appropriation part of Article 26 of the Articles of Incorporation. |

Explanation of performance evaluation criteria for directors and managers:

a) Performance evaluations for the Company's directors are conducted annually in accordance with the Regulations Governing the Performance Appraisal of the Board of Directors:

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i. Board self-evaluation:

The Board's self-evaluation sets assessment items based on five aspects of "Level of participation in company operations", "Enhancing the quality of Board decisions", "Composition and structure of the Board", "Appointment and continuing education of directors", and "Internal control" as indicators for performance evaluation.

ii. Board member (self or peer) evaluation:

Board member (self or peer) evaluations set assessment items based on six aspects of "Understanding of Company objectives and missions", "Awareness of Board member responsibilities", "Level of participation in company operations", "Managing internal relationships and communication", "Professionalism and continuing education of directors", and "Internal control" as indicators for performance evaluation.

b) Performance evaluations for the Company's managers are conducted in accordance with the Performance Appraisal Regulations, with separate appraisals for the first and second halves of the year. "Employee Objective Performance Evaluation Forms" are used, with scoring criteria set based on three aspects of "Attendance", "Objective management", and "Work performance and service spirit" as indicators for performance evaluation.

3) Regular review of indicators for the Board of Directors performance evaluation to ensure appropriate and suitable content for conducting performance evaluations.

4) Regular evaluation of achievement of performance targets by the Company's directors and managers, and determination of individual remuneration content and amounts based on the results of performance evaluations according to the criteria.

Explanation of correlation between individual performance evaluation results and individual remuneration content and amounts for directors and managers:

a) Explanation of performance evaluation results:

i. Performance evaluations for the Company's directors in 2025 were conducted in accordance with the Regulations Governing the Performance Appraisal of the Board of Directors:

The Board's self-evaluation was conducted based on the five evaluation aspect criteria.

Evaluation result: 98 points after conversion.

The Company's directors comply with the corporate governance policy on diversity, continue professional education to enhance expertise, actively participate in Board meetings and decision discussions, understand the Company's risks and provide supervision, fully exerting the functions of the Board.

Board member (self or peer) evaluations were conducted based on the six evaluation aspect criteria.

Evaluation result: Between 96-99 points after conversion.

The Company's directors have clear understanding of corporate

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objectives and missions, full awareness of director responsibilities, actively and effectively participate in company operations, maintain effective communication with the management team, other directors and the CPA, continue professional development, and effectively evaluate and supervise internal control and risk management to fully exert their responsibilities as directors.

ii. Performance evaluations for the Company's managers in 2025 were conducted for the first and second half of the year in accordance with the Performance Appraisal Regulations:

Evaluations were conducted based on the three major aspect criteria in the "Employee Objective Performance Evaluation Form".

Evaluation result: Grades between "A" and "Excellent".

b) Correlation between individual remuneration and performance evaluation results:

Distribution of remuneration for the Company's directors is linked to profits for that year. The appropriation amount is determined in consideration of future operational risks and development trends, with individual amounts issued based on performance evaluation results. The appropriation of director remuneration is expressly stipulated in Article 26 of the Articles of Incorporation as follows:

If the Company records profit in a fiscal year (referring to net profit before tax, after deducting employee and director remuneration), 7%~10% shall be set aside as employee remuneration and no more than 2% as director remuneration. However, if the Company still has accumulated losses (including adjustments to unappropriated retained earnings), the amount to offset losses shall be retained in advance.

From the aforementioned employee compensation, no less than 5% shall be allocated as compensation for entry-level employees. The employee remuneration may be distributed in cash or stock, and the recipients may include employees of subsidiaries meeting the conditions stipulated by the Board of Directors.

The distribution of employee and director compensation shall be resolved by the Board of Directors and reported to the shareholders' meeting.

In addition to fixed monthly salaries, the year-end bonus and employee remuneration appropriation for the Company's managers are linked to profits for that year. The individual amounts are determined in consideration of future operational risks and development trends and based on performance evaluation results. The appropriation of employee remuneration is expressly stipulated in Article 26 of the Articles of Incorporation as above.

The above information for 2024 was reported at the 2025 shareholder meeting.

e. Nomination Committee member information and operation: N/A

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(5) Implementation of sustainable development promotion and deviations from the Sustainable development Best Practice Principles for TWSE/TPEx Listed Companies

Promotion item	Implementation status
	Yes	No	Summary description
1. Has the Company established governance structures for promoting sustainable development, and has it established dedicated (or concurrent) units to oversee promoting sustainable development, which report to the Board of Directors and are supervised by the Board of Directors?	☑		The Company’s Administration Div. is the coordinating unit for promoting sustainable development. The Deputy Manager, one person each from the HR Department and General Affairs Department, and two people from the Finance Department are responsible for operations to promote the following main functions - formulating and amending sustainable development regulations, and implementing sustainable development promotion, including implementing corporate governance, developing sustainable environments, safeguarding social welfare, and strengthening sustainable development information disclosure. Implementation status is as follows:
1. Formulation and amendment of sustainable development regulations:
Formulate and amend sustainable development regulations in accordance with competent authority requirements, and be responsible for regulation interpretation, consultation services, reporting content logging and filing, and other associated operations. Formulated regulations include the "Ethical Code of Conduct", "Major Internal Information Handling Procedures", "Procedures for Prevention of Insider Trading", "Ethical	In compliance with the Principles.
			information disclosure, and other related operations. Information disclosure includes the "Ethical Code of Conduct", "Major Internal Information Handling Procedures", "Procedures for Prevention of Insider Trading", and other related operations. Information disclosure includes the "Ethical Code of Conduct", "Major Internal Information Handling Procedures", "Procedures for Prevention of Insider Trading", and other related operations.

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Promotion item	Implementation status
	Yes	No	Summary description
			Corporate Management Best Practice Principles", and "Sustainable Development Best Practice Principles".
2. Implementation of sustainable development promotion:
(1) Implement corporate governance:
Promote various operations such as enhancing information transparency, distributing dividends, establishing communication channels, providing employee welfare measures, etc. to protect the rights and interests of shareholders, customers, suppliers, employees and other stakeholders.
(2) Develop sustainable environments:
In operational activities and internal management, we strive to achieve environmental sustainability goals such as product design, processes, and waste disposal, that comply with environmental regulations, and have introduced the ISO 14001 environmental management system to implement environmental management through actual systems and fulfill corporate social responsibility for environmental protection.
(3) Safeguard social welfare:
Establish healthy work environments, hold various activities, build communication channels to protect employee rights. Provide disaster relief for major social disasters. Over the

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Promotion item	Implementation status	Deviations from and causes of deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description

Year	Description	Amount
2009	Typhoon Morakot disaster relief in Kaohsiung	NT$400 thousand
2014	Kaohsiung gas explosions	NT$500 thousand
2015	New Taipei City Formosa Water Park explosion	NT$300 thousand
2016	Rebuilding after Typhoon Nepartak in Taitung	NT$200 thousand
2018	• Hualien 7.0 earthquake disaster relief
• Ming Chuan University International College development fund	NT$325 thousand
Supported government policy to assist with agricultural oversupply by purchasing bananas and cabbage for employee distribution
2019	• Sino- Arabian Culture and Economic Association in Taiwan scholarship for learning Arabic
• The Association for no crime R.O.C prevention and criminal rehabilitation	NT$360 thousand

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Promotion item	Implementation status
	Yes	No	Summary description
			Year	Description	Amount
			2020	• Ming Chuan University International College development fund
• Sino- Arabian Culture and Economic Association in Taiwan scholarship for learning Arabic
• End of year gratitude concert at National Taiwan University Hospital Yunlin Branch	NT$245 thousand
			2021	• Ming Chuan University International College development fund
• Dharma Drum Mountain Social Welfare and Charity Foundation	NT$425 thousand
			2022	Dr. Liou Yung-Shiung Life Education Association	NT$200 thousand
			2023	• National Taiwan University Hospital Yunlin Branch Year-end Thanksgiving Concert
• Fu Jen Catholic University Hospital development fund	NT$600 thousand

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Promotion item	Implementation status	Deviations from and causes of deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
Yes	No	Summary description

2023	• In order to revitalize the economy, the Employee Welfare Committee distributes NT$10 thousand in cash to each employee
• In order to implement social welfare, purchase honey from farmers and given to employees
2024	• National Taipei University of Technology academic feedback fund
• Fu Jen Catholic University Hospital development fund	NT$363 thousand
In order to revitalize the economy, the Employee Welfare Committee distributes NT$13 thousand in cash to each employee
2025	• National Taipei University of Technology academic feedback fund
• Fu Jen Catholic University Hospital development fund
• Taita Jing-Fu Medical Foundation	NT$ 913 thousand
In order to revitalize the economy, the Employee Welfare Committee distributes NT$ 8 thousand in cash to each employee

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Promotion item	Implementation status
	Yes	No	Summary description
			(4)Strengthen sustainable development information disclosure: The Company fully discloses relevant and reliable information on sustainable development in its website and annual reports to enhance information transparency.
3. Holding sustainable development education and training: The Company regularly holds sustainable development education and training each year to promote relevant policies, systems, plans and implementation results for corporate social responsibility. The 2025 "Promotion of Ethical Corporate Management and Sustainable Development " was held on May 8, 2025 and November 13, 2025 for 30 minutes each time, with 20 and 19 attendees, respectively, to promote implementation of various corporate plans.
4. Board of Directors supervision of sustainable development:
(1)Recent sustainable development regulations formulated and amended and approved by the Board of Directors include: 2020 amendment of "Ethical Code of Conduct", "Ethical Corporate Management Best Practice Principles", 2024 amendment of "Corporate Governance Best Practice Principles", and 2025 amendment of "Sustainable Development Best Practice Principles".
(2)The 2025 implementation status of sustainable development was reported at the March 11, 2026 Board of Directors meeting.

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Promotion item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
2. Has the Company conducted risk assessments on environmental, social and corporate governance issues related to company operations based on the materiality principle, and formulated associated risk management policies or strategies?	☑		Since the subsidiary mainly engages in sales operations, the risk assessment boundary is based primarily on the Company in consideration of relevance and materiality to operations. The Company conducts assessments on risks of material environmental, social and corporate governance issues that may affect operations, analyzes, tracks, and responds to them in order to strengthen risk management mechanisms. Please refer to page 94 for associated risk management organizational structures and policies.	In compliance with the Principles.
3. Environmental issues
(1) Has the Company established appropriate environmental management systems based on the characteristics of its industries?
(2) Does the Company endeavor to improve energy use efficiency and use renewable materials with low environmental impact?	☑		(1) The Company has introduced the ISO 14001 environmental management system in the hopes of contributing corporate social responsibility towards environmental protection. Certification was obtained on May 12, 2016, with validity until April 1, 2029.
(2) The Company's policies on improving energy use efficiency and using renewable materials are as follows:
1. Products comply with EU environmental regulations, emphasizing green energy-saving designs and improving recycling efficiency to reduce the harm of e-waste pollution to the environment.
2. All scrap items are strictly reviewed for reuse value in accordance with "Scrap Item Management Regulations"	(1) In compliance with the Principles.
(2) In compliance with the Principles.

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Promotion item	Implementation status
	Yes	No	Summary description
(3) Has the Company evaluated the potential risks and opportunities that climate change presents to current and future operations, and adopted corresponding response measures?	✓		before being scrapped. Reports of industrial waste clearance plans are also filed with the Environmental Protection Administration as required. Information on waste is logged monthly, and when actual clearance is conducted, qualified Class A waste clearance vendors are responsible for removal to improve resource reuse in compliance with environmental regulations.
3. The Company has set up recycling bins, promoted waste sorting and recycling, advocated waste reduction, and paper recycling and reuse in order to improve utilization efficiency of resources.
4. The 2025 environmental management goal was: Reduce non-recyclable waste (non-hazardous waste) by more than 1% of target value per quarter. Overall actual achievement: Actual non-recyclable waste for the full year was 13% less than the target, an outstanding result.
(3) In view of the greenhouse gas emissions generated by human activities that have caused global climate change and impacts on ecological environments and human survival, also posing huge economic risks, environmental protection measures are imperative. To achieve sustainable management goals, the Company evaluates potential current and future climate change risks and opportunities, with consideration of the following aspects and response measures:	(3) In compliance with the Principles.

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Promotion item	Implementation status
	Yes	No	Summary description
			1.Legal aspect:
1) Risks:
A. To comply with the "Greenhouse Gas Reduction and Management Act" and meet greenhouse gas reduction goals, operating costs will increase.
B. Risk of non-compliance with international and local environmental laws or environmental assessment requirements.
2) Opportunities:
A. The current international trend leans towards utilizing green taxes to protect the environment. The increased costs to comply with energy conservation and carbon reduction policies can reach competitive parity with future tax system developments.
B. Continuously cooperate with customers targeting green supply chains to achieve energy conservation and carbon reduction effects.
3) Response implementation in 2025:
A. Implemented energy conservation and carbon reduction policies and continued self-inspection and review of greenhouse gas emissions.
B. Gradually replaced lighting equipment with energy-saving lights.
C. Gradually replaced air conditioning equipment with energy-saving inverter models.

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Promotion item	Implementation status
	Yes	No	Summary description
			D. Turned off lights during lunch break to conserve energy.
2. Climate disaster aspect:
1) Risks:
A. When typhoons approach, strong winds and heavy rains may damage buildings and equipment.
B. Shutdowns may increase operational labor costs.
2) Opportunities:
A. Increase response capabilities for climate change adaptation and reduce disaster impacts to enhance corporate competitiveness.
B. Focus on issues of environmental sustainability to improve corporate image.
3) Response implementation in 2025: Taiwan is an island and located in the subtropical monsoon region, with obvious island maritime climate characteristics. Typhoons often affect the region. To prevent and eliminate losses in the workplace caused by various disasters, the Company has formulated "Emergency Response Management Regulations" and "Disaster Recovery Management Regulations" for compliance. The 2025 "Emergency Response Drill" was held on May 14, 2025 to conduct response drills for potential disasters, in order to achieve the goal of disaster mitigation.

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Promotion item	Implementation status
	Yes	No	Summary description
(4) Has the Company collected statistics on greenhouse gas emissions, water consumption and total weight of waste in the most recent two years, and formulated policies on reducing greenhouse gas emissions, water consumption or other waste management?	✓		3. Other Aspects
1) Risks: Suppliers use hazardous substances.
2) Opportunities: Cultivate good supplier partnerships to improve product quality.
3) Response implementation in 2025: To prevent suppliers from using hazardous substances, the Company has required suppliers to sign "Hazardous Substance Compliance Commitment Letters" since 2016 to guarantee products supplied meet stipulated limits for hazardous substances. The Company's products comply with RoHS, PFOS, and REACH regulations.

(4) The Company has compiled statistics on greenhouse gas emissions, water consumption, and total waste weight over the past two years, and has established policies for greenhouse gas reduction, water conservation, and other waste management as follows:
1. Greenhouse gas emissions: In line with the country's greenhouse gas reduction targets, the Company (excluding subsidiaries) began gradually conducting greenhouse gas emissions inventory in 2016.
1) Scope 1: Targeting direct emissions from sources owned or controlled by the Company, including three types: mobile combustion sources, process emission sources, | (4) In compliance with the Principles. |

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Promotion item	Implementation status
	Yes	No	Summary description
			and fugitive emission sources. The greenhouse gas inventory results for 2023 and 2024 were 51.6321 tons of CO_{2}e and 90.3715 tons of CO_{2}e, respectively. The 2023 inventory was verified by TUV NORD Taiwan, while the 2024 inventory was completed through internal verification in accordance with the ISO 14064-1:2018 standard and other applicable regulations. Calculated based on revenue, the emission intensity for 2023 and 2024 was 0.0288 and 0.0887 tons of CO_{2}e / million dollars in revenue, respectively. The increase in 2024 emissions was primarily due to the decommissioning of expired fire extinguishers, which is treated as an emission activity and involves substances with high GWP values. The rise in emission intensity was mainly attributed to a decline in revenue. The Company will continue to conduct self-inventories and review GHG emissions. The 2025 inventory is currently in progress, and the results are expected to be disclosed on the MOPS and the Company’s website by June 2026.
2) Scope 2: Targeting indirect greenhouse gas emissions generated from purchased electricity. The greenhouse gas inventory results for 2023 and 2024 were 294.9609 tons

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Promotion item	Implementation status
	Yes	No	Summary description
			of CO2e and 273.6744 tons of CO2e, respectively. The 2023 inventory was verified by TUV NORD Taiwan, while the 2024 inventory was completed through internal verification in accordance with the ISO 14064-1:2018 standard and other applicable regulations. Calculated based on revenue, the GHG emission intensity for 2023 and 2024 was 0.1646 and 0.2687 tons of CO2e / million dollars in revenue, respectively. A review of the 2024 data indicates that while total emissions decreased, the emission intensity increased; this was primarily due to a reduction in business activities alongside a decline in revenue. The 2025 inventory is currently in progress, and the results are expected to be disclosed on the MOPS and the Company’s website by June 2026.
3) Scope 3: Targeting other indirect emissions not owned by the Company but generated from the Company's activities, including transportation, product use, waste disposal, and other greenhouse gas emissions.The greenhouse gas inventory results for 2023 and 2024 were 95.6405 tons of CO2e and 87.3882 tons of CO2e, respectively. The 2023 inventory was verified by TUV NORD Taiwan, while the 2024 inventory was completed

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Promotion item	Implementation status
	Yes	No	Summary description
			through internal verification in accordance with the ISO 14064-1:2018 standard and other applicable regulations. Calculated based on revenue, the emission intensity for 2023 and 2024 was 0.0534 and 0.0858 tons of CO_{2}e / million dollars in revenue, respectively. A review of the 2024 data indicates that while total emissions decreased, the emission intensity increased; this was primarily attributed to the reduction in business activities alongside a decline in revenue. The 2025 inventory is currently in progress, and the results are expected to be disclosed on the MOPS and the Company’s website by June 2026.
2. Water consumption: The Company conducts periodic inventories of water consumption. The water consumption for 2024 and 2025 was 2,115 metric tons and 1,923 metric tons, respectively. The decrease in water consumption in 2025 compared to 2024 was primarily due to a reduction in business activities alongside a decline in revenue.
3. Waste production: All regulated waste disposal by the Company is required to be reported. Waste materials are categorized into three main types: waste electrical cables, waste electronic components, and waste printed circuit boards.

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Promotion item	Implementation status
	Yes	No	Summary description
			1) The reported waste production for 2024 and 2025 was 0.593 metric tons and 0.570 metric tons, respectively, which was transported by qualified Class A waste disposal contractors on June 24, 2024, June 25, 2024, and June 26, 2025, and obtained proof of receipt from the Industrial Waste Management Center of the Ministry of Environment.
2) The decrease in waste production in 2025 was mainly due to the decline in revenue during 2025, which resulted in reduced production input and waste output. The Company will continue to control waste production according to the waste management plan.
4. The Company's energy conservation and carbon reduction policies and implemented measures are as follows:
1) In 2016, the Company introduced the ISO14001 environmental management system, committing to a process of continuous environmental improvement. Through establishing environmental policies, setting goals, implementing actions, and conducting audits and reviews, we aim to achieve substantial environmental improvements. Internal ISO14001 promotions were held on May 8, 2025, and November 13, 2025, with 20 and 19 attendees, respectively.

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Promotion item	Implementation status
	Yes	No	Summary description
			2) Starting from 2019, our environmental management goal has been to reduce non-recyclable waste (non-hazardous waste) by 1% each quarter compared to the target value. According to statistics, the total weight of non-hazardous waste in 2024 and 2025 was 1.50 metric tons and 1.42 metric tons, respectively. This represents a 13% reduction compared to the target waste amount, demonstrating excellent results.
3) For 2026, we plan to implement measures to reduce electricity consumption by 0.3% every two months compared to the target value:
• Implement awareness campaigns for energy conservation.
• Ensure designated area supervisors regularly inspect and turn off non-essential power sources.
• Analyze electricity reduction status every two months and remind areas that have not met targets to pay attention.
4) The greenhouse gas reduction target is: to reduce greenhouse gas emissions by 25% in 2030 compared to the base year 2023, and to achieve net-zero emissions by 2050.

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Promotion item	Implementation status
	Yes	No	Summary description
4. Social issues
(1) Has the Company formulated relevant management policies and procedures in accordance with relevant laws and international human rights conventions?

(2) Has the Company established and implemented reasonable employee welfare measures (including compensation, leave and other benefits), and appropriately reflected business performance or results in employee compensation? | ☑ | | (1) The Company has reported work rules to the Labor Affairs Bureau for approval in accordance with labor laws, and implemented them to safeguard employee legal rights. Various HR regulations have also been formulated and posted on the company intranet for employees to look up their rights anytime.

The Company has formulated human rights policies in accordance with internationally recognized human rights standards such as the "International Covenant on Civil and Political Rights" and "International Covenant on Economic, Social and Cultural Rights", and is committed to providing employees with a safe, healthy and dignified working environment. Please refer to page 149 for human rights policies and specific management plans.

(2) The Company has established and implemented reasonable employee welfare measures, and appropriately reflected business performance or results in employee compensation. Relevant regulations and implementation status are as follows:
1. Compensation:
1) Remuneration management: The Company has formulated "Remuneration Management Regulations" | (1) In compliance with the Principles.

(2) In compliance with the Principles. |

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Promotion item	Implementation status
	Yes	No	Summary description
			that classify positions based on the different nature of work, and establish appropriate remuneration standards for each position according to complexity and level of responsibility.
2) Year-end bonus distribution: The Company has formulated "Year-End Bonus Distribution Regulations" whereby the base amount for year-end bonus distribution is set according to the Company's business performance or results for the year, and distributed based on performance appraisal and length of service. The 2025 year-end bonus was approved by Board resolution on December 15, 2025 and distributed on February 12, 2026.
3) Employee compensation distribution: In accordance with Article 26 of the Company's Articles of Incorporation, if the Company records profit in a fiscal year (referring to net profit before tax, after deducting employee and director compensation), 7%~10% shall be set aside as employee compensation. The 2024 employee compensation was approved by Board resolution on March 5, 2025 to appropriate 10% of before-tax net profit as employee compensation, and distributed in cash on September 5, 2025.

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Promotion item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(3) Has the Company provided employees with a safe and healthy work environment, and regularly provided health and safety education for employees?	☑		4) Performance appraisal: The Company has formulated "Performance Appraisal Regulations" to regularly evaluate achievement of performance targets by employees, in order to appropriately reflect business performance or results in employee compensation. The 2025 first and second half appraisals were completed on July 15, 2025, and January 20, 2026, respectively.

Leave:
The Company has formulated "Leave and Time-Off Management Regulations" to provide a clear basis and norms for employee leave and time-off. The various leave categories and payment standards comply with relevant laws and regulations.
Other benefits:
Please refer to page 149 for the Company's employee welfare measures, training, implementation status, retirement system, agreements between labor and management, employee rights protection measures, etc.

(3) The Company's employee work environment safety and health and education and training are described as follows:
1. The Company has formulated "Workplace Safety and Health Codes of Conduct", appointed occupational safety | (3) In compliance with the Principles. |

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Promotion item	Implementation status
	Yes	No	Summary description
(4) Has the Company established effective career development and training plans for employees?	☑		and health management personnel and first-aid personnel who are responsible for promoting and implementing safety and health management, conducting new employee and annual regular employee safety and health education and training, and implementing regular monthly fire safety inspections and noise measurements, quarterly drinking water E. coli testing, semiannual carbon dioxide and n-hexane environmental testing, etc. to ensure a safe and healthy work environment for employees. Regular annual employee health checks are held. For special operations involving n-hexane, lead, and ionizing radiation, relevant personnel undergo required health checks and complete legally mandated education and training to protect employee health. In addition, the Welfare Committee organizes recreational activities such as group tours and meals annually to relieve employee stress.
2. Please refer to page 152 for specific implementation details.
3. There were no occupational injuries in 2025.
4. There were no fire incidents in 2025.

(4) The Company has formulated "Education and Training Management Regulations" for compliance, and provides education and training subsidies. Each employee can choose | (4) In compliance with the Principles. |

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Promotion item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(5) Has the Company established relevant policies and complaint procedures to protect consumer or customer rights with regard to customer health and safety, customer privacy, marketing, and labeling of products and services, in accordance with relevant laws, regulations and international standards?	☑		internal or external training courses relevant to their own work. Please refer to page 151 for 2025 training status.

(5) The Company maintains thorough communication channels with customers, and has formulated procedures including "Customer Complaint Handling", "Customer Satisfaction Survey Management", "Customer Service Management", and "Continuous Improvement Operations" to resolve customer issues quickly and safeguard customer rights.

The Company has formulated "Ethical Corporate Management Best Practice Principles" that expressly stipulate punishments for unethical conduct. Relevant laws and international standards that should be followed for provided products and services should be continuously researched and understood to ensure transparency and safety of product and service information.

The Company website provides customer contact windows and email inboxes. A stakeholder section has been set up to provide channels for customer inquiries, complaints or suggestions. The Company handles these appropriately according to the principle of integrity and provides feedback to safeguard customer rights. | (5) In compliance with the Principles. |

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Promotion item	Implementation status			Deviations from and causes of deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(6) Has the Company formulated supplier management policies requiring suppliers to comply with relevant regulations on environmental protection, occupational safety and health or labor rights, and disclosed implementation status?	☑		(6) The Company's supplier management policies and implementation status are described as follows:
1. The Company has formulated "Ethical Corporate Management Best Practice Principles" that expressly stipulate punishments for unethical conduct. The legality and ethical management policies of suppliers or other business partners are evaluated before business relationships are established, to avoid transactions with unethical suppliers. If unethical conduct is discovered in business interactions or cooperation, commercial dealings will be immediately halted and the party will be added to the list of refused transactions. Contracts may be unconditionally terminated or dissolved at any time to ensure business operations of counterparts are conducted fairly and transparently, fully implementing the Company's ethical management policies.
2. The 2025 supplier self-evaluations have been completed for reference in business interactions. The company selected 5 additional suppliers for on-site supplier evaluations.	(6) In compliance with the Principles.
5. Has the Company prepared reports disclosing corporate non-financial information such as sustainability		☑	The Company’s 2024 Sustainability Report was prepared in August 2025; the 2025 Sustainability Report is expected to be completed by August 2026.	In compliance with the Principles.

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Promotion item	Implementation status
	Yes	No	Summary description
reports based on internationally accepted report preparation standards or guidelines? Have the above reports obtained reasonable assurance or limited assurance from third party certification units?
6. If the Company has stipulated its own sustainable development principles in accordance with the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies", please describe differences between operations and the stipulated principles: The Company has always been committed to implementing corporate governance, developing sustainable environments, and safeguarding social welfare. Overall corporate operations for sustainable development are in compliance with relevant principles in the Best Practice Principles. There are no other material differences.
7. Other important information to help understand the status of sustainable development promotion implementation: (1) The Company proactively creates employment opportunities and exclusively hires local labor. It has formulated various employee welfare policies, employee rights protection measures, and promoted harmonious labor relations. Please refer to page 149 for implementation details. (2) The Company's products are ISO 9001 certified and comply with EU RoHS, PFOS, and REACH environmental regulations. (3) The Company has established a public information network reporting system. Dedicated personnel are responsible for collecting and disclosing corporate information, establishing sound mechanisms for handling, disclosing and remediating deficiencies in major internal information. After rigorous assessment processes with records retained, information that may impact shareholder and stakeholder decisions can be disclosed appropriately and in a timely manner.

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(4) The 2025 implementation status of sustainable development was reported to the Board of Directors on March 11, 2026. Communication status with various stakeholders, actual implementation content and frequency were as follows:

Stakeholder	Key concerns	Communication channels	Response methods	Frequency	Actual implementation
Shareholders and investors	• Business performance of Corporate governance
• Corporate governance
• Ethical management and sustainable development
• Shareholder equity
• Environmental protection	Young, Yu-Che, President
Tel: (02) 2785-3961
Email: [email protected]	• Shareholder meeting	Annually	2025 shareholder meeting held on June 10, 2025
			• Material information announced in real time on the Market Observation Post System and corporate website
• Open communication channels and contact methods established	As needed	19 material information announcements in 2025, with simultaneous English versions
Employees	• Labor relations
• Compensation and benefits
• Workplace safety and health
• Opinion feedback mechanisms
• Talent cultivation and career development	Deputy Spokesperson: Chen, Yun-Chen Assistant Vice President of Administration Div.
Tel: (02) 2785-3961
Email: [email protected]	• Performance appraisals	Biannually	Conducted once each in 1H and 2H 2025.
			• Labor-management meetings	Quarterly	Held total of 4 meetings in 2025
			• Employee Welfare Committee	Quarterly	Held total of 6 meetings in 2025

Stakeholder	Key concerns	Communication channels	Response methods	Frequency
Customers	• Sales service and support
• Product quality and safety
• After-sales service
• Brand image
• Customer satisfaction	Customer section:
Sales Div. Assistant Vice President Liao /
Sales Div. Assistant Vice President Huang
Tel: (02) 2785-3961
Email: [email protected]	• Dedicated sales service team	As needed	Completed 2025 customer after-sales service and satisfaction surveys
			• Customer after-sales service and satisfaction surveys	Annually
Suppliers	• Supplier management
• Green processes	Supplier section: Mr. Wang, Vice President of Manufacture Div.
Tel: (02) 2785-3961
Email: [email protected]	• Dedicated procurement service window	As needed	Completed 2025 supplier self-evaluations. The Company selected 5 additional suppliers for on-site evaluations .
			• Supplier evaluations	Annually

(5) In accordance with the principle of materiality, conducting risk assessments related to environmental, social, and corporate governance issues relevant to the Company's operations, and establishing corresponding risk management strategies:

Risk management organizational structure and responsibilities:

1) Board of Directors: Supervises formulation and amendments to sustainable development regulations including "Ethical Code of Conduct", "Major Internal Information Handling Procedures", "Procedures for Prevention of Insider Trading", "Ethical Corporate Management Best Practice Principles", and "Sustainable Development Best Practice Principles", and hears annual reports on implementation status of sustainable development.

2) General Manager's Office: Evaluates and responds to management decision risks and operational risks as the unit responsible for coordinating relevant matters with each division.

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3) Internal Audit Office: Regularly audits if risk control is effectively implemented in each division according to internal control and audit plans, and prepares audit reports based on actual audit findings. Proactively assists management in handling risks interrelated across the entire enterprise.

4) Each division: Division heads bear responsibility for risk management and oversee analyzing and monitoring associated risks within their divisions to ensure risk control mechanisms and procedures can be effectively implemented.

Description of risks faced by the Company and associated management strategies:

Key issue	Risk assessment items	Risk description
Environmental aspect	Environmental	• Legal aspect: Includes risks of non-compliance with international and local environmental laws or environmental assessment requirements.
• Climate disaster aspect: Includes risks of reduced or interrupted production capacity due to wind disasters, floods or droughts.
• Other aspects: Includes risks of supplier use of hazardous substances affecting the Company's products.	Please refer to page 75 Sustainable Development Promotion Item - Environmental Issues for details.
Social aspect	Occupational safety and health	• Legal aspect: Includes risks of non-compliance with various occupational safety and health laws and regulations.
• Operational aspect: Includes risks of losses to the Company due to improper human resource management, operations or errors.	Please refer to page 85, Sustainable Development Promotion Item - Social Issues for details.
	Human resources	• Labor relations aspect: Includes risks arising from the Company's employee welfare measures, training, retirement system, agreements between labor and management, human rights policies and other issues.
• Talent development and management aspect: Includes risks arising from recruitment and retention of talent, talent development mechanisms, and succession plans.

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Key issue	Risk assessment items	Risk description
Economic aspect (including corporate governance aspect)	Market	• Technology and industry aspect: Includes risks of resources invested in continuous new product development and new service applications to meet market demand.
• Financial aspect: Includes risks of fluctuations in values due to market risk factors (exchange rates, stock prices, inflation, etc.)	Please refer to page 161 for details.
	Operations	• Operational aspect: Includes risks faced from excessively concentrated procurement or sales.
• Financial aspect: Includes risks of impacts on the Company from credit ratings, credit assessment terms, changes in accounting policies, etc.
• Intellectual property aspect: Includes risks that may arise from patent applications, maintenance and management.
• Supply chain aspect: Includes risks of quality, pricing and delivery time of supplied goods.
• Information security aspect: Includes risks of impacts on the Company from email phishing attacks, outdated software versions, storage without adequate protections or improperly configured settings, employees lacking information security awareness or inadequate skills.
	Investments	• Investment aspect: Includes risks of impacts on the Company from poorly regulated operations of investees under long-term investments.
	Regulatory compliance	• Regulatory aspect: Includes risks of impacts on the Company from major domestic and foreign policy and legal changes.

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Implementation of Climate-Related Information

Item	Budget Execution
1. Describe the Board of Directors' and management's oversight of climate-related risks and opportunities.	The Company's Administration Department oversees sustainable development initiatives, with the Assistant Vice President of Administration Div. also serving as the Corporate Governance Officer. Quarterly reports on greenhouse gas inventory and verification disclosure are provided to the Board of Directors. Additionally, progress updates are regularly presented at management meetings to supervise the Company's overall climate change management measures.
2. Describe how the identified climate risks and opportunities affect the Company's business, strategy and finances (short-term, medium-term, long-term).	The Company evaluates current and future climate change risks and opportunities comprehensively, considering various factors and response measures. For detailed information, please refer to page 76. In addition, information on the Task Force on Climate-related Financial Disclosures (TCFD), short-, medium-, and long-term climate risks and opportunities, related financial impacts, and response strategies please refer to page 98.
3. Describe the impact of extreme climate events and transition actions on finances.	(1) Impact of extreme climate events on finances:
Extreme high temperatures increase the operating costs of air conditioning equipment; if heavy rain causes flooding, work stoppages or equipment damage, there is a risk of temporary inability to ship, resulting in reduced revenue; if there is a drought and water shortage, it may be necessary to transport water across regions, resulting in increased operating costs.

(2) Impact of transition actions on finances:
Under the transition to a low-carbon economy, increased policies and regulations may elevate production, development, and management costs. |
| 4. Description of the Process of Identifying, Evaluating, and Managing Climate Risks and its Integration into the Overall Risk Management System: | The Company's Administration Department concurrently promotes sustainable development, with the Associate Administrator also serving as the corporate governance officer. Policies and improvement goals are formulated in accordance with relevant laws and regulations. The implementation of sustainable development is reported to the Board of Directors at least annually to achieve the purpose of risk management. |

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Item	Budget Execution
5. If scenario analysis is employed to assess resilience to climate change risks, explanations should be provided regarding the scenarios, parameters, assumptions, analysis factors, and major financial impacts utilized.	The Company has not yet utilized scenario analysis to assess resilience to climate change risks, but will remain attentive to this matter and implement appropriate measures. Regarding the management of climate-related risks, the Company has not developed a transition plan at present. However, it will continue to monitor this issue closely and take suitable actions as necessary.
6. If there is a transition plan to address climate-related risk management, please describe the content of the plan, as well as the indicators and goals used to identify and manage physical risks and transition risks.	The Company has not yet used scenario analysis to assess resilience against climate change risks, but we will continue to pay attention to this issue in order to respond.
7. If internal carbon pricing is utilized as a planning tool, an explanation of the pricing basis should be provided.	The Company has not yet employed internal carbon pricing as a planning tool, but will remain attentive to this matter and implement appropriate measures.
8. If climate-related targets have been established, details such as the covered activities, greenhouse gas emissions scope, planning period, and annual progress should be provided. If carbon offsets or Renewable Energy Certificates (RECs) are utilized to achieve related targets, details regarding the source and quantity of offset carbon reductions or the number of Renewable Energy Certificates (RECs) should be provided.	For information on the Company's climate-related targets, please refer to page 79.

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Climate-related Financial Disclosures (TCFD)

The Company has established internal control systems and internal audit systems, and implements integrated risk management related to environmental, social, and governance aspects of sustainable operations through the ISO management system risk management framework. Due to extreme climate caused by global warming, and the increasing importance of energy and climate change issues in recent years, the Company, in order to mitigate the impact of climate change on its operations, has followed the framework of the Task Force on Climate-related Financial Disclosures (TCFD). The framework is divided into governance, strategy, risk management, metrics and targets. The corporate governance unit identifies climate-related risks and opportunities and formulates subsequent response strategies based on recommendations from external consultants.

Dimensions	Governance	Strategy	Risk Management	Metrics and Targets
Explanation	Governance of climate-related risks and opportunities.	Business, strategy, and financial planning, actual and potential climate-related impacts.	Identification, assessment, and management of climate-related risks.	For information on materiality, disclose the metrics and targets used to assess and manage climate-related issues.
Recommended Disclosures	◆Board Oversight Process
Climate risk and opportunity governance status is reported annually to the Board of Directors by the corporate governance officer as part of the annual sustainability risk management agenda, with the Board overseeing implementation effectiveness.	◆Short, Medium, and Long-term Risk and Opportunity Identification
Please refer to the table below:
Short, Medium, and Long-term Climate Risk and Opportunity Table	◆Identification/Assessment and Management Process
Step 1
• The sustainability team is responsible for the collection of climate and environmental background data.
• Climate risk and operational scope assessment.
Step 2
• Establish a list of climate risks and opportunities.
• Establish an internal operations impact survey questionnaire.	◆Indicators for Assessing Risks and Opportunities
1. Upon the implementation of the ISO 14064-1:2018 Greenhouse Gas Management System, the 2023 self-inventory results were verified by TUV NORD Taiwan; the 2024 results were then completed through internal verification in accordance with the ISO 14064-1:2018 standard and other applicable regulations.
2. Disclose greenhouse gas emissions on the Company website and through public information platform.
		◆Impacts Caused by Risks and Opportunities
Please refer to the table below:
Climate-Related Financial Impact and Response Table

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Dimensions	Governance	Strategy	Risk Management	Metrics and Targets
	◆Management Roles and Responsibilities
The President serves as the Chief Commissioner for climate risk and opportunity governance, while heads of each first-level unit implement risk identification, assessment, and management.	◆Scenario Analysis
The Company refers to the 2°C scenario (2DS) for discussions in sustainability-related meetings, while simultaneously using tools provided by Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) as reference for evaluating physical risk scenarios of climate change. Ultimately, the Company chose to adopt the 2DS/RCP8.5 scenario as its climate change physical risk scenario, under which thematic descriptions of climate change risks and opportunities are conducted for physical risks, regulatory transition risks, etc.	Step 3
• The sustainability team implements analysis of climate risks, opportunities, and operational impacts.
• Identify major risk items.

Step 4
• Establish implementation strategies and set targets.

Step 5
• Annually review the effectiveness of implementation strategies and targets through sustainability-related meetings. | ◆Greenhouse Gas Emissions
The results of the Company's 2024 GHG inventory, verified internally in accordance with the ISO 14064-1:2018 standard and other applicable regulations, are as follows:
Scope 1: 90.3715 metric tons CO_{2e}.
Scope 2: 273.6744 metric tons CO_{2e}.
Scope 3: 87.3882 metric tons CO_{2e}. |
| | | | ◆Integration into Existing Risk Management System
The Company's ISO management system has incorporated climate risk and opportunity management into the operations of each unit. | ◆Target Setting and Results Presentation
1. In 2030, greenhouse gas emissions will be reduced by 25% compared to the base year 2023.
2. By 2050, net-zero emissions will be achieved. |

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Short, Medium, and Long-term Climate Risks and Opportunities Table

Risk Number	Climate Change Risk Issues	Risk Level	Time Frame
R1	Increase in Greenhouse Gas Emission Pricing	Medium	Short-term, Mid-term
R2	Strengthened Emissions Reporting Obligations	Medium	Short-term
R3	Requirements and Regulations for Existing Products and Services	Medium	Short-term
R4	Substituting Existing Products and Services with Low-Carbon Alternatives	Medium	Mid-term, Long-term
R5	Cost of Low-Carbon Technology Transition	Medium	Short-term, Mid-term
R6	Changes in Customer Behavior	Medium	Short-term, Mid-term
R7	Changes in Rainfall (Water) Patterns and Extreme Variations in Climate Patterns	Low	Mid-term, Long-term
R8	Increased Severity of Extreme Weather Events such as Typhoons and Floods	Low	Mid-term
R9	Increased Raw Material Costs	Medium	Short-term, Mid-term, Long-term
R10	Increased Average Temperature	Low	Short-term, Mid-term, Long-term
R11	Rise in Sea Levels	Low	Mid-term, Long-term
Opportunity Number	Climate Change Opportunity Issues	Opportunity Level	Time Frame
---	---	---	---
O1	Reduction in Water Usage and Consumption	Medium	Mid-term, Long-term
O2	Use of More Efficient Production and Distribution Processes	Medium	Mid-term, Long-term
O3	Recycling and Reuse	Medium	Mid-term, Long-term
O4	Move to More Efficient Buildings	Medium	Mid-term, Long-term
O5	Adoption of More Efficient Transportation Methods	Medium	Short-term, Mid-term, Long-term
O6	Using Low-Carbon Energy	Medium	Mid-term, Long-term
O7	Adoption of Incentive Policies	Medium	Mid-term, Long-term
O8	Use of New Technologies	Medium	Mid-term, Long-term

Note: Short-term refers to 1-5 years, medium-term refers to 5-10 years, and long-term refers to more than 10 years.

Climate-Related Financial Impacts and Response Table

Risk and Opportunity Items	Financial Impacts and Response Mechanisms
Strengthened Emissions Reporting Obligations	1. In response to the regulatory authorities' requirement for all listed companies to complete greenhouse gas inventory and disclosure according to the schedule.
2. Estimated Financial Impact: The Company has completed the greenhouse gas inventory for year 2024 in accordance with ISO14064-1. Based on the actual cost investment assessment, this risk has a low impact on overall operations.
Changes in Rainfall (Water) Patterns and Extreme Variations in Climate Patterns	1. Due to the increase in extreme weather events, the frequency of typhoons and heavy rains has increased, which may cause flooding in office buildings and affect the Company's operations. After assessment, this may result in low financial losses.
The Company's response measures are to implement drainage system maintenance and establish typhoon and heavy rain emergency response plans to reduce immediate risks. The building has completed waterproofing construction, additional water barriers have been purchased, and monthly maintenance of pumping motors and drainage facilities is implemented. Therefore, this risk does not constitute a significant impact on overall operations, and the operational impact is low.
2. The threat of water shortages potentially triggered by extreme climate events.
The Company adopts a vertical disintegration production model, outsourcing high energy and water-consuming SMT processes to subcontractors, while focusing on-site on back-end assembly and burning processes with low environmental impact. Benefiting from this production structure, the Company has extremely low direct reliance on water resources, and the resulting impact on operations is low.
Increased Raw Material Costs	1. With the rapid development of the AI industry, the component supply chain has experienced structural imbalances, driving up the prices of key raw materials such as memory. Simultaneously, geopolitical conflicts have constrained energy supplies and caused logistics costs to surge, pushing global oil prices higher and intensifying inflationary pressures. These factors pose multiple challenges to corporate operating costs.
Response Measures:
(1) Optimize product functional design to increase added value, and flexibly optimize pricing within market-acceptable ranges to reflect cost structures and maintain operational profitability.

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| | (2) Implement module minimization design to reduce raw material usage, and increase the proportion of localized procurement within the supply chain to mitigate the rising costs of materials and transportation.
(3) Establish mid-to-long-term plans for product carbon footprint assessments and utilize green and eco-friendly designs to reduce carbon costs. From a financial perspective, it is estimated that procurement costs will increase; the overall operational impact is assessed as moderate. |
| --- | --- |
| Increased Average Temperature | 1. The continuous increase in average temperature leads to increased energy consumption and increased operational costs.
2. The Company's energy consumption mainly comes from basic operational electricity in general offices. The Company will continue to implement energy-saving and carbon reduction policies and equipment replacement. Therefore, this risk does not constitute a significant impact on overall operations, and the operational impact is low. |

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(6) Implementation of ethical management and deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies

Evaluation item	Implementation status
	Yes	No	Summary description
1. Adoption of ethical management policies and plans
(1) Has the Company adopted ethical management policies approved by the board of directors, and stated in its guidelines and external documents the ethical management policies and practices, as well as the commitment by the board of directors and management team to implement the policies rigorously and thoroughly?
(2) Has the Company established assessment mechanisms for risks of unethical conduct, regularly analyze and assess business activities within the scope of business that are at relatively high	☑		(1) The Company has formulated "Ethical Corporate Management Best Practice Principles and Procedures" and "Ethical Code of Conduct", with the latest amended versions approved by the Board of Directors on March 13, 2020 and November 4, 2020 respectively, serving as guidelines for conduct of all Company personnel (including the Board of Directors and management team). Directors and managers have also signed declarations that they have not engaged in unethical conduct.
(2) The Company's formulated "Ethical Corporate Management Best Practice Principles and Procedures" encompass the conducts stipulated in Article 7 Paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and other business activities within the business scope that are at relatively high risk of	(1) In compliance with the Principles.
(2) In compliance with the Principles.

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Evaluation item	Implementation status
	Yes	No	Summary description
risk of being involved in unethical conduct, and accordingly adopted preventive measures for such activities which at a minimum cover the conducts stipulated in Article 7 Paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies?
(3) Has the Company stipulated in the ethical management prevention programs the operating procedures, conduct guidelines, punishment systems, and appeal systems for violations, and faithfully implemented the programs, and regularly reviewed and revised the programs?	☑		being involved in unethical conduct. Related preventive measures have been adopted, with regular or irregular audits and analyses conducted to prevent unethical conduct.

(3) The Company has formulated "Ethical Corporate Management Best Practice Principles and Procedures" and "Employee Reward and Disciplinary Regulations" which stipulate operating procedures, guidelines, punishment systems and appeal systems for violations. These are faithfully implemented to prevent unethical conduct and reviewed at least once annually for necessary amendments. | (3) In compliance with the Principles. |
| 2. Implementation of ethical management
(1) Does the Company evaluate the ethical records of counterparties it engages with and stipulate ethical | ☑ | | (1) The Company's formulated "Ethical Corporate Management Best Practice Principles and Procedures" expressly stipulate punishments for unethical conduct. The legality, ethical | (1) In compliance with the Principles. |

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
conduct clauses in the transaction terms and conditions with such counterparties?

(2) Has the Company set up a dedicated unit that is subordinate to the Board of Directors and reports its ethical management policy and prevention of unethical conduct programs as well as implementation status to the Board of Directors at least once per year? | ☑ | | management policy and records of unethical conduct are evaluated before establishing business relationships. Credit checks or investigations are conducted in accordance with "Supplier Evaluation Regulations" and "Credit Management Regulations" before transactions. Purchase orders or agreements stipulating ethical conduct are signed with suppliers and customers for fair and transparent business activities.

(2) The Company's Administration Division serves as the dedicated unit for promoting ethical management. The Assistant Vice President, one person each from the HR Department and General Affairs Department, and two people from the Finance Department are responsible for operations to promote the main functions of formulating and amending ethical management regulations and supervising implementation of ethical management policies, unethical conduct prevention programs and implementation status. Implementation is as follows:
1. Formulation and amendment of ethical management regulations:
Ethical management regulations are formulated and amended in accordance with competent authority | (2) In compliance with the Principles. |

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Evaluation item	Implementation status
	Yes	No	Summary description
			requirements. Responsibilities also include interpretation and consultation services for the regulations along with reporting content logging, filing and other associated operations. Formulated regulations include the "Ethical Code of Conduct", "Major Internal Information Handling Procedures", "Procedures for Prevention of Insider Trading", and "Ethical Corporate Management Best Practice Principles and Procedures".
2. Ethical management policies and unethical conduct prevention programs and implementation supervision:
1) The Company may not provide or accept any form of improper benefits or facilitation payments.
2) Credit checks or investigations are conducted for suppliers and customers respectively in accordance with "Supplier Evaluation Regulations" and "Credit Management Regulations" before transactions. Written records are produced for all transactions, which are conducted fairly and transparently. Market pricing is understood through tendering procedures during procurement to comply with ethical principles.
3) Directors comply with recusal principles for conflicts of interest.

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Evaluation item	Implementation status
	Yes	No	Summary description
(3) Has the Company established policies for preventing conflicts of interest and provided appropriate channels for filing complaints, and faithfully implemented the policies?	☑		4) Major internal information handling procedures have been established to ensure information symmetry.
5) The formulated "Ethical Corporate Management Best Practice Principles and Procedures" stipulate whistleblowing procedures and are posted on the Company website. In addition, contact windows for investors, customers, suppliers and employees have been set up on the Company website to maintain open communication channels.
6) Regular annual education and training on ethical management is held.
3. Implementation status is reported to the Board of Directors annually:
The 2025 ethical management implementation status was reported at the March 11, 2026 Board of Directors meeting.
(3) The Company's formulated "Ethical Corporate Management Best Practice Principles and Procedures" serve as guidelines for all employees, who can communicate with management through email at any time.	(3) In compliance with the Principles.

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(4) To implement ethical management, has the Company created effective accounting and internal control systems that are audited by internal auditors or reviewed by CPAs periodically?	☑		(4) The Company has established effective accounting and internal control systems. Internal auditors formulate associated audit plans based on unethical conduct risk assessment results to audit unethical conduct prevention. The 2025 internal audit found the compliance status of ethical management policies and unethical conduct prevention to be normal.	(4) In compliance with the Principles.
(5) Does the Company regularly hold internal and external ethical management education and training?	☑		(5) The dedicated unit regularly holds internal promotions to communicate the importance of integrity and incorporates ethical management into administration, establishing clear and effective reward/disciplinary systems. The 2025 "Promotion of Ethical Corporate Management and Sustainable Development" was held on May 8, 2025 and November 13, 2025 for 30 minutes each time, with 20 and 19 attendees, respectively, to promote implementation of various corporate plans.	(5) In compliance with the Principles.
3. Whistleblowing system implementation
(1) Has the Company established specific whistleblowing and reward systems, set up convenient whistleblowing channels, and assigned appropriate personnel to	☑		(1) The Company's formulated "Ethical Corporate Management Best Practice Principles and Procedures" contain whistleblowing procedures and are disclosed on the Company website. Communication mailboxes have also been set up on the Company website which internal and external	(1) In compliance with the Principles.

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
handle whistleblowing cases?

(2) Has the Company established standard operating procedures for investigating accusation cases, subsequent measures after investigations, and related confidentiality mechanisms? | ☑ | | personnel can use for whistleblowing. The Administration Division has been assigned as the dedicated unit to handle associated matters.

(2) The Company's formulated "Ethical Corporate Management Best Practice Principles and Procedures" expressly stipulate standard operating procedures for investigating reported cases, subsequent measures after investigations, and associated confidentiality mechanisms. When handling reported cases, the dedicated unit should ascertain relevant facts of the accusation. Assistance from the legal compliance or other associated units may be sought if necessary. If investigations confirm the whistleblowing allegations to be true, the implicated party will be asked to cease the relevant conduct immediately, undergo proper disciplinary actions, and compensation sought through legal proceedings where necessary, in order to uphold the Company's reputation and rights.

For reported cases confirmed to be true after investigation, relevant Company units should be ordered to review associated internal control systems and procedures and propose improvement measures, to prevent recurrences of the same conduct. | (2) In compliance with the Principles. |

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description
(3) Has the Company adopted proper measures for protecting whistleblowers from inappropriate disciplinary actions due to their whistleblowing?	☑		The Company's dedicated unit should report the whistleblowing cases, handling methods and subsequent review improvements to the Board of Directors.
(3) The Company's formulated "Ethical Corporate Management Best Practice Principles and Procedures" expressly stipulate that the identity of whistleblowers and the content of their allegations will be kept confidential, and that whistleblowers are protected from being inappropriately disciplined for their whistleblowing.	(3) In compliance with the Principles.
4. Enhanced disclosure of ethical management information
Has the Company disclosed its guidelines for ethical management conduct and the status of implementation on its website and the MOPS?	☑		The Company's website https://www.rubytech.com.tw has a corporate governance section disclosing the Ethical Corporate Management Best Practice Principles and Procedures.	In compliance with the Principles.
5. If the Company has stipulated its own ethical management code of conduct in accordance with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancies between the operations and the stipulated code:
All Company operations are handled in accordance with laws and regulations. The Company proactively implements ethical corporate management with no discrepancies from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies.

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Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary description

Any other important information to facilitate better understanding of the Company's implementation of ethical corporate management operations (such as review and amendments to the Company's adopted ethical management code of conduct):

(1) The Company's formulated "Ethical Corporate Management Best Practice Principles and Procedures" were approved by the Board of Directors on March 19, 2015, with the latest amended version approved on March 13, 2020 to implement an ethical corporate culture.
(2) The Company's Administration Division serves as the concurrent unit responsible for promoting ethical management. Main implementation details are as follows:

No.	Implementation item	Implementation status
1	Regular reviews of relevant laws.	Relevant laws and regulations were reviewed this year, with amendments to the "Corporate Governance Practice Principles" approved by the Board of Directors on November 7, 2024.
2	Annual reports to the Board of Directors.	The 2025 implementation status was reported to the Board of Directors on March 11, 2026.
3	Review of whether any money, gifts, commissions, positions, services, preferential treatment, rebates, facilitating payments, entertainment, dining or other valuable items have been provided to others in any form or name.	Where business needs require polite receptions, application is made for hospitality expenses as stipulated, with costs conforming to normal social etiquette values. No abnormalities have been discovered.
4	Review of whether any person has directly or indirectly provided or promised to provide the aforementioned benefits and reported accordingly.	Not applicable.

Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
		Yes	No		Summary description
No.	Implementation item			Implementation status
5	Review of whether the Company has provided or promised any facilitating payments.			Not applicable.
6	Whether political donations have been made and properly reported to the Chairman for approval and notification to the dedicated unit, with amounts conforming to laws and regulations.			No political donations were made during the year.
7	Whether charitable donations or sponsorships have been made, properly reported to the Chairman for approval and notification to the dedicated unit, with amounts conforming to laws and regulations.			In 2025, a donation of NT$160 thousand was made to the National Taipei University of Technology for academic feedback fund, NT$ 250 thousand to the Taita Jing-Fu Medical Foundation and NT$500 thousand to the Fu Jen Catholic University Hospital in accordance with approval procedures and notification to the dedicated unit, with amount in compliance with laws and regulations.
8	Whether directors, managers and other stakeholders attending or serving as proxies for Board meetings have recused themselves if the meeting agenda involves their own interests or interests of the legal entities they represent.			1. At the August 4, 2025 Board meeting discussing the 2024 manager and employee compensation distribution plan, Chairman Lin, Kuan-Ming and his spouse Hui Yu Investment Co., Ltd. Representative: Lin, Ling-Yu, and Director Young, Yu-Che all recused themselves as required.

Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
		Yes	No		Summary description
No.	Implementation item			Implementation status
				2. At the November 5, 2025 Board meeting discussing the 2025 1st employee stock option certificates, including the list of grantees, units granted, and subscribable shares, Chairman Lin, Kuan-Ming and his spouse Hui Yu Investment Co., Ltd. Representative: Lin, Ling-Yu, and Director Young, Yu-Che, all recused themselves as required.3. At the December 15, 2025 Board meeting discussing the 2025 year-end bonus distribution plan, Chairman Lin, Kuan-Ming and his spouse Hui Yu Investment Co., Ltd. Representative: Lin, Ling-Yu, and Director Young, Yu-Che all recused themselves as required.
9	Whether unfair trading of undisclosed information has been avoided, and information not disclosed externally has been prevented from leaking to others, in order to prevent others from unfair trading of undisclosed information.			The Company has formulated "Major Internal Information Handling Procedures" to prevent information asymmetry, and "Procedures for Prevention of Insider Trading" to prevent insider trading.
10	Whether directors and management have provided statements undertaking to comply with ethical management policies, and employment terms require employees to comply with ethical management policies.			The Company's directors and managers have signed statements that they have not engaged in unethical conduct. Employees have signed "Employment Agreements" containing stipulations on compliance with ethical management policies.

Evaluation item	Implementation status
	Yes	No	Summary description
No.	Implementation item		Implementation status
11	Whether supplier and customer integrity records have been evaluated, with those discovered to have engaged in unethical conduct immediately restricted from business dealings and added to the list of refused transactions.		1. Credit checks or investigations are conducted in accordance with "Supplier Evaluation Regulations" and "Credit Management Regulations" before transactions.
2. Written records are produced for all transactions, which are conducted fairly and transparently.
3. Market pricing is understood through tendering procedures during procurement to comply with ethical principles.
4. No circumstances of unethical conduct by suppliers or customers have been discovered this year.
12	Whether whistleblowing systems have been set up.		1. Whistleblowing procedures have been stipulated in the Company's "Ethical Corporate Management Best Practice Principles and Procedures" and disclosed on the website
2. Reported cases are handled in accordance with the "Employee Reward and Disciplinary Regulations" based on severity.
3. No whistleblowing has been received this year.
13	Whether proper statement channels have been established to protect stakeholder rights.		The Company website provides contact windows for investors, customers, suppliers and employees to maintain open communication channels.
14	In cases of unethical conduct towards the Company, relevant facts should be disclosed to judicial and prosecutorial agencies if involving illegalities, and to government anti-corruption authorities if involving civil servants or government personnel.		Not applicable.

-114-

Evaluation item	Implementation status			Deviations from and causes of deviation from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
		Yes	No		Summary description
No.	Implementation item			Implementation status
15	Annual education and training to communicate the importance of integrity, incorporate ethical management into the Company's management, and establish clear and effective reward/disciplinary systems.			1. Annual education and training to communicate the importance of integrity, incorporate ethical management into the Company's management, and establish clear and effective reward/disciplinary systems.
2. The 2025 "Promotion of Ethical Corporate Management and Sustainable Development" was held on May 8, 2025 and November 13, 2025 for 30 minutes each session, with 20 and 19 attendees, respectively, to promote implementation of various corporate plans.

(7) Other important information to help understand the status of corporate governance operations:

Please refer to item 8 in "Implementation of Corporate Governance and Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies".

(8) Implementation internal control system

a. The Statement of Internal Control System has been disclosed on the MOPS. Please visit the MOPS website at: https://mops.twse.com.tw/mops/#/web/t06sg20 and navigate to: Individual Company > Corporate Governance > Company Rules and Regulations/Internal Control > Internal Control System Statement.

b. If the Company engages an accountant to examine its internal control system, disclose the CPA examination report: None.

(9) Important resolutions adopted in shareholders' meeting and Board of Directors' meeting in the past year and up to the date of report:

a. Major resolutions of the shareholders' meeting and implementation:

Date	Important Shareholder Meeting Resolutions	Implementation status of resolved motions
2025.06.10	1. Acceptance of the Company's 2024 business report and financial statements.	Announced on the Market Observation Post System as required.
	2. Acceptance of the Company's 2024 earnings distribution plan.	Carried out according to the resolution. The dividend distribution, ex-dividend record date was set as July 7, 2025. The cash dividend distribution was completed on July 24, 2025, with total amount of NT$ 126,953 thousand (NT$2.2 per share).
	3. Approved the amendment to the Company's “Articles of Incorporation”	In accordance with regulations.

b. Major resolutions of the Board of Directors:

Date	Important Board Resolutions
2025.03.05	1. The Company's proposal for 2024 director compensation distribution.
2. The Company's proposal for 2024 employee compensation distribution.
3. The Company's 2024 business report and financial report.
4. The Company's proposal for 2024 earnings distribution.
5. Issuance of 2024 report of internal control system effectiveness assessment and Declaration of Internal Control System.
6. The Company's 2025 CPA appointment, remuneration, independence and suitability assessment.
7. Amendments to partial articles of the Company's "Articles of Incorporation".
8. Proposal for 2025 Annual Shareholder Meeting date, location, manner, agenda, period for accepting shareholder proposals from shareholders holding 1% or more of shares, handling location, and other associated matters.

Date	Important Board Resolutions
2025.05.05	1. The Company's 2025 Q1 consolidated financial report.
2. The transfer period for the Company's ninth repurchase of treasury shares is approaching expiration. The portion that remains untransferred after the deadline is proposed to be cancelled.
2025.06.10	1. Setting the ex-dividend record date.
2025.08.04	1. The Company's 2025 Q2 consolidated financial report.
2. The Company's Remuneration Committee reviewed the proposal for the distribution of employee remuneration to managers for the year 2024.
3. The Company's 2024 Sustainability Report.
2025.10.03	1. Proposal for the issuance of the Company’s 2025 1st employee stock option certificates.
2025.11.05	1. The list of grantees, units granted, and subscribable shares of the Company’s 2025 1st employee stock option certificates.
2. The Company's 2025 Q3 consolidated financial report.
3. Amendments to partial articles of the Company's “Procedures for Acquisition and Disposal of Assets”.
4. Amendments to partial articles of the Company's “Sustainable Development Best Practice Principles”.
5. Amendments to partial articles of the Company's “Internal Control System” and “Internal Audit Implementation Rules”.
2025.12.15	1. The Company's 2026 audit plan.
2. The Company's Remuneration Committee reviewed the 2025 year-end bonus distribution proposal.
3. The Company's 2026 budget proposal.
2026.03.11	1. The Company's proposal for 2025 director compensation distribution.
2. The Company's proposal for 2025 employee compensation distribution.
3. Proposal for the assessment of the scope of "Non-managerial Full-time Employees" for the year 2026
4. The Company's 2025 business report and financial report.
5. The Company's proposal for 2025 earnings distribution.
6. Proposal for the issuance of new shares through the capitalization of 2025 retained earnings.
7. Issuance of 2025 report of internal control system effectiveness assessment and Declaration of Internal Control System.
8. The Company's 2026 CPA appointment, remuneration, independence and suitability assessment.
9. Amendments to partial articles of the Company's "Articles of Incorporation".
10. Amendments to partial articles of the Company's “Internal Control System” and “Internal Audit Implementation Rules”.
11. Proposal for 2026 Annual Shareholder Meeting date, location, manner, agenda, period for accepting shareholder proposals from shareholders holding 1% or more of shares, handling location, and other associated matters.

(10) Dissenting or qualified opinion of directors or supervisors against an important resolution passed by the Board of Directors that is on record or stated in a written statement in the past year and up to the date of report: None.

118 -

4. Information on Professional Fees of CPA

(1) Information on Professional Fees of CPA

Unit: NT$ thousand

Name of Accounting Firm	Name of CPA	CPA Audit Period	Audit Fees	Non-audit Fees	Total	Notes
Deloitte & Touche	Lin, Shu-Ju	2025	1,710	300 (Note)	2,010
	Chang, Chun-I	2025

Note: Details of non-audit fees are as follows:

2025 tax certification fees of NT$200 thousand.
Fees for issuing the 2025 non-managerial full-time employee salary information checklist of NT$10 thousand.
Auditor's review fee for the 2025 employee stock option issuance case of NT$80 thousand.
2024 undistributed profit substantive investment tax credit certification fees of NT$10 thousand.

(2) If the accounting firm was changed and the audit fees paid in the fiscal year of change was less than that of the previous fiscal year, the audit fees before and after the change and the reasons shall be disclosed: Not applicable.

(3) If the audit fee is reduced by 10% or more from the previous year, the amount, percentage, and reasons for the reduction in the audit fee shall be disclosed: Not applicable.

Information on Replacement of CPA: There has been no replacement of CPA in the most recent 2 fiscal years and subsequent periods.
The Chairperson, President, or Financial or Accounting Manager of the Company Who Had Worked for the certifying Accounting Firm or Its Affiliated Enterprises in the Past Year: None.

Share transfer by directors, supervisors, managers and shareholders holding more than 10% interests and changes to share pledging by them in the past year and up to the date of report

(1) Share transfer by directors, supervisors, managers and shareholders holding more than 10% interests and changes to share pledging by them

Unit: Shares

Title	Name	2025		As of April 30, 2026
		No. of Shares Held Increase (Decrease)	No. of Shares Pledged Increase (Decrease)	No. of Shares Held Increase (Decrease)	No. of Shares Pledged Increase (Decrease)
Chairman and Chief Executive	Lin, Kuan-Ming	-	-	-	-
Director	Hui Yu Investment Co., Ltd.	-	-	-	-
Director	Fu Ho Investment Co., Ltd.	-	-	-	-
Director	Tung, Chin-Chuan	-	-	-	-
Director	Young, Yu-Che	-	-	-	-
Independent Director	Huang, Chin-Tan	-	-	-	-
Independent Director	Wu, Yung-Sheng	-	-	-	-
Independent Director	Wang, Chi-Chiao	-	-	-	-
Independent Director	Lin, Hsin-Piao	-	-	-	-
President and Head of Sales Div. and Head of RD Div.	Young, Yu-Che	-	-	-	-
Vice President of Manufacture Div.	Wang, Wen-Chang	-	-	-	-
Assistant Vice President of Sales Div.	Liao, Li-Fen	-	-	-	-
Assistant Vice President of Sales Div. and Vice President of Subsidiary in China	Huang, Chien-Cheng	-	-	-	-
Assistant Vice President of Product Planning Div.	Tseng, Hung-Min	-	-	-	-
Senior Assistant Vice President of Innovation & Development Div.	Hung, Chin-Piao	-	-	-	-
Senior Assistant Vice President of RD Div.	Chen, Kuo-Hsiung	-	-	-	-
Assistant Vice President of RD Div.	Wang, Chin-Yi	-	-	-	-

120 -

(2) Transfer of shares by directors, supervisors, managers and shareholders holding over 10% to related parties: None.
(3) Share pledges by directors, supervisors, managers and shareholders holding over 10% with related parties as counterparties: None.

Information on Relationship between any of the Top ten Shareholders (Related Party, Spouse, or Kinship within the Second Degree)

April 10, 2026

Name	Personal No. of Shares Held		Spouse and Minor Children No. of Shares Held		Total No. of Shares Held in Others Names		Names of shareholders who are related parties or spouses, or within two degrees of kinship
	No. of Shares	Shareholders %	No. of Shares	Shareholders %	No. of Shares	Shareholders %	Name (or Surname)	Relationship
Premier Venture Capital Corp.	5,601,338	9.71%	-	-	-	-	Lin, Kuan-Ming
Shou Chia Investment
Hui Yu Investment
Lin, Hsin-Hui
Lin, Chia-Hui	Chairman and president of the shareholder of the corporation.
The relationship between its chairman and the chairman and president of the corporate shareholder is within the second degree of kinship.
The supervisor of the corporate shareholder.
The chairman of the board is in a spouse relationship with the chairman and president of the corporate shareholder.
The relationship with the chairman and president of the corporate shareholder is within the second degree of kinship.
The relationship with the chairman and president of the corporate shareholder is within the second degree of kinship.
Premier Venture Capital Corp. Representative-Lin, Kuan-Ming (Top 10 Shareholders)	1,522,193	2.64%	818,714	1.42%	-	-	Premier Venture Capital
Shou Chia Investment
Hui Yu Investment
Lin, Chia-Hui
Lin, Hsin-Hui
Lin, Ling-Yu	Chairman and president of the corporation.
The relationship with the chairman and directors is within the second degree of kinship, and the relationship with the supervisor is spouse.
Director of the company
The relationship with the chairman is spouse, and the relationship with the director is within the second degree of kinship.
The relationship is within the second degree of kinship.
The relationship is within the second degree of kinship.
The relationship is spouse.
Shou Chia Investment Corp.	2,811,852	4.87%	-	-	-	-	Premier Venture Capital
Lin, Kuan-Ming
Hui Yu Investment	The relationship between its chairman and president and the chairman of the corporate shareholder is within the second degree of kinship.
The relationship with the chairman of the corporate shareholder is within the second degree of kinship.
The relationship with the supervisor of the corporate shareholder is spouse.
The relationship between the chairman and

Name	Personal No. of Shares Held		Spouse and Minor Children No. of Shares Held		Total No. of Shares Held in Others Names		Names of shareholders who are related parties or spouses, or within two degrees of kinship
	No. of Shares	Shareholders %	No. of Shares	Shareholders %	No. of Shares	Shareholders %	Name (or Surname)	Relationship
							Lin, Hsin-Hui
Lin, Ling-Yu	the chairman of the corporate shareholder is within the second degree of kinship.
Director of the corporate shareholder.
The relationship with the chairman of the corporate shareholder is within the second degree of kinship.
Supervisor of the corporate shareholder.
Shou Chia Investment Corp.
Representative-Lin, I-Ching	109,982	0.19%	-	-	-	-	Premier Venture Capital
Lin, Kuan-Ming
Hui Yu Investment
Lin, Ling-Yu	The relationship between its chairman and president and the chairman of the corporate shareholder is within the second degree of kinship.
The relationship is within the second degree of kinship.
Supervisor of the company and the relationship between its chairman is within the second degree of kinship.
The relationship is within the second degree of kinship.
Hui Yu Investment Corp.	2,538,317	4.40%	-	-	-	-	Lin, Ling-Yu
Premier Venture Capital
Lin, Kuan-Ming
Shou Chia Investment
Lin, Hsin-Hui	Chairman of the corporate shareholder.
The corporate shareholder is its supervisor.
The relationship between its chairman and president and the chairman of the corporate shareholder is spouse.
Director of the corporate shareholder.
The relationship between the chairman of the corporate shareholder is spouse.
The relationship between the chairman and the chairman of the corporate shareholder is within the second degree of kinship.
Director of the corporate shareholder.
Hui Yu Investment Corp.
Representative-Lin, Ling-Yu
(Top 10 Shareholders)	818,714	1.42%	1,522,193	2.64%	-	-	Premier Venture Capital
Lin, Kuan-Ming
Shou Chia Investment
Lin, Chia-Hui
Lin, Hsin-Hui	The supervisor of Hui Yu Investment Corp. representative.
The relationship between its chairman and president is a spouse, and between the director is within the second degree of kinship.
The relationship is spouse.
Supervisor of the company and the relationship between its chairman and director is within the second degree of kinship.
The relationship is within the second degree of kinship.
The relationship is within the second degree of kinship.
Lin, Chia-Hui	1,374,700	2.38%	-	-	-	-	Premier Venture Capital
Lin, Kuan-Ming
Shou Chia Investment
Hui Yu Investment
Lin, Hsin-Hui
Lin, Ling-Yu	Director of the corporate shareholder.
The relationship between the chairman, president, director of the corporate shareholder, and the supervisor of corporate shareholder representative is within the second degree of kinship.
The relationship is within the second degree of kinship.
The relationship between the director and the supervisor of the corporate shareholder is within the second degree of kinship.
The relationship between the director and the supervisor of the corporate shareholder is within the second degree of kinship.
The relationship is within the second degree of kinship.
The relationship is within the second degree of kinship.
Wu Zheng-Hong	1,193,359	2.07%	-	-	-	-	None
Lin, Hsin-Hui	1,042,943	1.81%	-	-	-	-	Premier Venture Capital
Shou Chia Investment	Director of the corporate shareholder.
The relationship between the chairman, president, director of the corporate shareholder and the supervisor of corporate shareholder representative is within the second degree of kinship.
Director of the corporate shareholder
The relationship with the supervisor of the

121 -

122 -

Name	Personal No. of Shares Held		Spouse and Minor Children No. of Shares Held		Total No. of Shares Held in Others Names		Names of shareholders who are related parties or spouses, or within two degrees of kinship
	No. of Shares	Shareholding %	No. of Shares	Shareholding %	No. of Shares	Shareholding %	Name (or Surname)	Relationship
							Hui Yu Investment
Lin, Kuan-Ming
Lin, Chia-Hui
Lin, Ling-Yu	corporate shareholder is within the second degree of kinship.
Director of the corporate shareholder.
The relationship with the chairman and director of the corporate shareholder is within the second degree of kinship.
The relationship is within the second degree of kinship.
The relationship is within the second degree of kinship.
The relationship is within the second degree of kinship.
Lin, Chin-Cheng	880,951	1.53%	-	-	-	-	None
Hsu, Heng-Fu	800,000	1.39%	-	-	-	-	None

Note: The calculation of shareholding percentage includes shares held in own name, in the name of spouse and underage children, or in others' names.

The Number of Shares of the same invested Company held by the Company, the Company's Directors, Supervisors, and Executive Officers, and the Businesses controlled directly or indirectly by the Company, and the Consolidated Shareholding Ratio

December 31, 2025
Unit: Shares; %

Investees (Note)	Investments of the Company		Investments of directors, supervisors, managers and directly or indirectly controlled businesses		Total investments
	No. of Shares	% Shareholding	No. of Shares	% Shareholding	No. of Shares	% Shareholding
GRAND IMPACT TECHNOLOGY LIMITED	1,800,000	100	-	-	1,800,000	100

Note: Long-term investments accounted for using the equity method

Capital Review
Capital and Shares

(1) Source of Capital

a. Categories of issued shares in the recent year and as of the date of publication of the Annual Report

May 8, 2026
Unit: Thousand share/ NT$ Thousand

Year/Month	Issue Price (NT$)	Approved Capital Stock		Actual Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Sources of Capital Stock	Paid-in by Assets Other Than Cash	Approval Date and Document No.
1981/07	10	200	2,000	200	2,000	Company inception	None	-
1998/05	10	30,000	300,000	19,000	190,000	Cash capital increase of NT$60,580 thousand Retained earnings capital increase of NT$9,480 thousand Employee bonuses capital increase of NT$1,440 thousand	None	June 5, 1998 (87) authorized No. 113580
1999/07	10	30,000	300,000	19,650	196,500	Retained earnings capital increase of NT$5,700 thousand Employee bonuses capital increase of NT$800 thousand	None	August 18, 1999 (88) authorized No. 130216
2000/08	10	30,000	300,000	20,723	207,229	Retained earnings capital increase of NT$7,860 thousand Employee bonuses capital increase of NT$904 thousand Capital surplus capital increase of NT$1,965 thousand	None	July 25, 2000 (89) authorized (I) No. 64754
2001/09	10	30,000	300,000	22,109	221,092	Retained earnings capital increase of NT$12,434 thousand Employee bonuses capital increase of NT$1,429 thousand	None	August 3, 2001 (90) authorized (I) No. 149928
2002/06	10	38,000	380,000	27,986	279,860	Cash capital increase of NT$30,000 thousand (incl. NT$12,000 thousand technology shares) Retained earnings capital increase of NT$24,320 thousand Employee bonuses capital increase of NT$4,448 thousand	Technology shares NT$12,000 thousand	January 10, 2002 (91) authorized (I) No. 180440 June 17, 2002 (91) authorized (I) No. 0910132453
2003/09	10	38,000	380,000	29,701	297,014	Retained earnings capital increase of NT$13,993 thousand Employee bonuses capital increase of NT$3,161 thousand	None	August 13, 2003 (92) authorized (I) No. 0920136707
2004/09	10	38,000	380,000	30,763	307,631	Retained earnings capital increase of NT$8,910 thousand Employee bonuses capital increase of NT$1,707 thousand	None	August 16, 2004 (93) authorized (I) No. 0930136449
2006/09	10	38,000	380,000	32,751	327,515	Retained earnings capital increase of NT$15,382 thousand Employee bonuses capital increase of NT$4,502 thousand	None	August 28, 2006 (95) authorized (I) No. 0950138237
2007/09	10	50,000	500,000	34,129	341,294	Retained earnings capital increase of NT$9,825 thousand Employee bonuses capital increase of NT$3,954 thousand	None	July 12, 2007 (96) authorized (I) No. 0960036228
2008/08	10	50,000	500,000	36,052	360,523	Retained earnings capital increase of NT$10,239 thousand Employee bonuses capital increase of NT$8,990 thousand	None	June 19, 2008 (97) authorized (I) No. 0970030766

123 -

Year/Month	Issue Price (NT$)	Approved Capital Stock		Actual Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Sources of Capital Stock	Paid-in by Assets Other Than Cash	Approval Date and Document No.
2009/07	10	50,000	500,000	38,426	384,257	Retained earnings capital increase of NT$18,026 thousand Employee bonuses capital increase of NT$5,708 thousand	None	June 22, 2009 (98) authorized 0980031011
2009/09	10	50,000	500,000	43,549	435,487	Cash capital increase of NT$51,230 thousand	None	August 5, 2009 (98) authorized No. 0980039307
2010/04	10	50,000	500,000	43,948	439,477	Employee stock options exercised NT$3,990 thousand	None	April 15, 2010 (99) authorized No. 09982677210
2010/05	10	50,000	500,000	44,010	440,102	Employee stock options exercised NT$625 thousand	None	May 31, 2010 (99) authorized 09984469600
2010/07	10	50,000	500,000	47,894	478,940	Retained earnings capital increase of NT$35,158 thousand Employee bonuses capital increase of NT$3,680 thousand	None	August 9, 2010 (99) authorized No. 09986578610
2011/07	10	70,000	700,000	48,991	489,910	Employee stock options exercised NT$10,970 thousand	None	July 8, 2011 (100) authorized 10084923220
2011/09	10	70,000	700,000	50,177	501,774	Retained earnings capital increase of NT$9,798 thousand Employee bonuses capital increase of NT$2,066 thousand	None	September 22, 2011 (100) authorized No. 10001222670
2011/12	10	70,000	700,000	50,188	501,879	Employee stock options exercised NT$105 thousand	None	December 29, 2011 (100) authorized No. 10001291200
2012/03	10	70,000	700,000	50,271	502,709	Employee stock options exercised NT$830 thousand	None	March 26, 2012 (101) authorized No. 10101052060
2013/03	10	70,000	700,000	50,321	503,209	Employee stock options exercised NT$500 thousand	None	March 19, 2013 (102) authorized No. 10201050180
2013/12	10	70,000	700,000	50,327	503,274	Employee stock options exercised NT$65 thousand	None	December 19, 2013 (102) authorized No. 10201256420
2014/08	10	70,000	700,000	53,711	537,105	Retained earnings capital increase of NT$33,831 thousand	None	August 26, 2014 (103) authorized No. 10301167300
2014/12	10	70,000	700,000	53,401	534,005	Treasury stock cancellation of NT$3,100 thousand	None	December 10, 2014 (103) authorized No. 10301255570
2015/02	10	70,000	700,000	52,684	526,835	Treasury stock cancellation of NT$7,170 thousand	None	February 17, 2015 (104) authorized No. 10401021040
2015/06	10	70,000	700,000	52,008	520,075	Treasury stock cancellation of NT$6,760 thousand	None	June 24, 2015 (104) authorized No. 10401122580
2015/09	10	70,000	700,000	51,933	519,325	Treasury stock cancellation of NT$750 thousand	None	September 30, 2015 (104) authorized No. 10401206600
2016/02	10	70,000	700,000	51,714	517,135	Treasury stock cancellation of NT$2,190 thousand	None	February 24, 2016 (105) authorized No. 10501034460
2016/08	10	70,000	700,000	53,265	532,649	Retained earnings capital increase of NT$15,514 thousand	None	August 15, 2016 (105) authorized No. 10501192200
2020/08	10	70,000	700,000	52,886	528,869	Treasury stock cancellation of NT$3,780 thousand	None	August 12, 2020 (109) authorized No. 10901144120
2021/10	10	70,000	700,000	54,471	544,712	Retained earnings capital increase of NT$15,843 thousand	None	October 13, 2021 (110) authorized No. 11001180570
2023/07	10	70,000	700,000	56,103	561,030	Retained earnings capital increase of NT$16,318 thousand	None	July 25, 2023 (112) authorized No. 11230141190
2024/09	10	70,000	700,000	57,784	577,838	Retained earnings capital increase of NT$16,808 thousand	None	September 10, 2024 (113) authorized No. 11330165440

124 -

May 8, 2026
Unit: Share

Share Categories	Approved Capital Stock				Remarks
	Outstanding Shares	Unissued Shares	Total
Common Stock	57,705,752 shares	42,294,248 shares	100,000,000 shares	The Company's shares are listed on the Taipei Exchange

b. If approval has been granted to offer and issue securities by shelf registration, additionally disclose the approved amount and information regarding securities to be issued or already issued: None.

(2) Major Shareholders

Major shareholders with more than 5% ownership: if less than 10, disclose the top 10 shareholders, the shares, percentage of ownership.

April 10, 2026

Shares Major Shareholders	Shares Held		Percentage of Ownership
	Premier Venture Capital Co., Ltd.	5,601,338	9.71
Shou Chia Investment Co., Ltd.	2,811,852	4.87
Hui Yu Investment Co., Ltd.	2,538,317	4.40
Lin, Kuan-Ming	1,522,193	2.64
Lin, Chia-Hui	1,374,700	2.38
Wu Zheng-Hong	1,193,359	2.07
Lin, Hsin-Hui	1,042,943	1.81
Lin, Chin-Cheng	880,951	1.53
Lin, Ling-Yu	818,714	1.42
Hsu, Heng-Fu	800,000	1.39

(3) Company's Dividend Policy and Implementation

a. Company's dividend policy

The Company's dividend policy is stated in Article 27 of the Articles of Incorporation: If the Company has earnings after the annual final account, after paying taxes and making up losses, 10% of the earnings shall be set aside as legal reserve unless the legal reserve has reached the Company's paid-in capital. Then special reserve shall be set aside or reversed according to law and regulations before the remaining earnings plus prior period undistributed earnings shall be used to propose an earnings distribution plan for approval at the shareholder's meeting.

The Company's dividend policy is as follows:

To ensure sustainable operations, capital expenditures, business development, and to protect shareholder equity, dividend distribution considers factors such as retained earnings, capital surplus, financial structure, and business performance. At least 30% of distributable earnings shall be distributed as shareholder dividends each year, unless cumulative distributable earnings are less than 30% of paid-in capital, then no dividends will be issued. Dividends are issued in cash and stock, with cash dividends accounting for at least 10% of the total. However, the shareholders' meeting may resolve to adjust the distribution method and percentages.

b. Dividend distribution proposed to the shareholders' meeting

The proposal of 2025 earning distribution has been resolved by the Board of Directors on March 11, 2026 as follows:

Ruby Tech Corporation
2025 Earnings Distribution Statement
Unit: NT$

Item	Amount
	Subtotal	Total
Undistributed earnings from the previous year		183,044,517
Remeasurements of defined benefit plan	1,558,541
Disposal of investments in equity instruments at fair value through other comprehensive income	1,788,798
Net income of 2025	153,857,041
After-tax net profit plus other profit items included in undistributed earnings of 2025	157,204,380
Less: 10% Legal reserve	(15,720,438)
Less: Special reserve	(14,285,969)
Earnings in 2025 Available for Distribution	127,197,973
Retained Earnings Available for Distribution as of December 31, 2025		310,242,490
Distribution Items:
Shareholder Dividends
(Distribution of dividends is based on 57,705,752 shares)
- Stock Dividends (NT$ 0.3 per share)
- Cash Dividends (NT$ 2.0 per share)	17,311,720
115,411,510	132,723,230
Undistributed earnings		177,519,260

Note: Cash dividends are rounded to the nearest whole number, and the total amount of cash dividends less than NT$ 1 will be adjusted and remitted to the Company and recorded as other income.

Chairman: Lin, Kuan-Ming, President: Young, Yu-Che, Accounting Officer: Chen Yun-Chen

c. Description of expected material changes in dividend policy: none.

(4) Effect of the Proposed Stock Dividends on the Company’s Business Performance and Earnings Per Share: Not applicable.

(5) Remuneration to Employees and Directors

a. Percentage or scope of remuneration to employees and directors provided in Company’s Articles of Incorporation

When the Company has profits for the year (defined as pre-tax income before deducting remuneration of employees and directors), 7% to 10% shall be distributed as employees’ remuneration, and no more than 2% shall be distributed as directors’ remuneration. However, where the Company has accumulated losses (including adjustments to unappropriated retained earnings), such profits shall be retained to offset such losses.

Of the aforementioned employees’ remuneration, not less than 5% shall be allocated for distribution to grassroots employees. Employees’ remuneration may be distributed in the form of cash or shares, and the recipients may include employees of the Company’s subsidiaries who meet the conditions prescribed by the Board of Directors. The distribution of employees’ remuneration and directors’ remuneration shall be resolved by the Board of Directors and reported to the shareholders’ meeting.

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

1) The basis for estimating employees’ and directors’ remuneration for the year 2025 is the Company’s pre-tax income for the year 2025 (before deducting employees’ and directors’ remuneration), amounting to NT$204,512,001. In accordance with the Company’s Articles of Incorporation, 2% of pre-tax income, amounting to NT$4,090,240, is appropriated as directors’ remuneration, and 10% of pre-tax income, amounting to NT$20,451,200, is appropriated as employees’ remuneration. The remuneration will be fully distributed in cash.

2) Basis for calculation of the number of shares to be distributed as employees’ remuneration in the form of shares: Not applicable.

3) The accounting treatment for any discrepancy between the actual distributed amount and the estimated amount shall be accounted for as a change in accounting estimate and adjusted in the subsequent year.

127 -

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

1) Employees' and directors' remuneration distributed in Cash or Shares

The Board of Directors resolved on March 11, 2026 the distribution of 2025 employees' and directors' remuneration as follows:

Unit: NT$

Item	Distribution Method	2025 Estimated Expenses	Board Approved Distribution Amount Difference	Difference	Reason for Difference	Treatment
Employees’ Remuneration	Cash	20,451,200	20,451,200	0	indifference	None
Directors’ Remuneration	Cash	4,090,240	4,090,240	0

2) Amount of employees' remuneration distributed in the form of shares and as a percentage of the after-tax profit provided in this year's standalone financial statements and total employees' remuneration combined: Not applicable.

d. Actual distribution of employees' and directors' remuneration in the previous year (including number of shares distributed, amount and stock price), any discrepancies between such distribution and the previously recognized employees' and directors' remuneration, as well as the reasons for and treatment of such discrepancies:

Unit: NT$

Item	Distribution Method	2024 Estimated Expenses	Board Approved Distribution Amount	Difference	Reason for Difference	Treatment
Employees’ Remuneration	Cash	19,126,610	19,126,610	0	indifference	None
Directors’ Remuneration	Cash	3,825,322	3,825,322	0

(6) Status of Share Repurchases :

a. Repurchase completed:

May 8, 2026

Repurchase Tranche No.	9th
Purpose of Repurchase	Transfer of shares to employees
Repurchase Period	2020.03.24 ~ 2020.05.22
Repurchase Price Range	NT$25.0 to NT$32.0 per share, the Company will proceed with the share repurchase even if the share price drops below the stipulated lower limit of the prescribed price range.
Type and Number of Shares Repurchased	Common shares: 78,000 shares
Total Repurchase Value	NT$ 2,340,963
Completion Rate(%)	9.75% (Note)
Shares Retired or Transferred	78,000 shares
Accumulated Treasury Shares	0 shares
Treasury Shares as Percentage of Total Shares Issued	0%

Note: To maximize shareholder value, the Company implemented a phased share repurchase strategy in light of market fluctuations. However, as the share price consistently surpassed the Board-authorized range during the period, the repurchase program was not fully executed to ensure the prudent use of corporate funds.

b. Repurchase in progress: None

Issuance of Corporate Bonds: None.
Issuance of Preferred Shares: None.
Issuance of Global Depositary Receipts: None.
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130 -

5. Issuance of Employee Stock Options and New Restricted Employee Shares:

(1) Status of Employee Stock Options

a. As of Publication Date, outstanding Employee Stock Options and Impact on Shareholders' Equity

May 8, 2026

Type of Employee Stock Options	2025 Employee Stock Option Plan
Effective Date of Registration	October 21, 2025
Total Units Authorized	2,500,000
Grant Date	November 5, 2025
Units Granted	2,500,000
Unissued Units	0
Percentage of Shares Subscribed to Total Issued Shares	4.33%
Option Term (Years)	5 years
Exercise Method	Delivery of newly issued shares
Vesting Schedule and Ratio (%)	The grantees may exercise the options in accordance with the following vesting schedule upon completion of two years from the grant date:
	Vesting Schedule	Cumulative Maximum Exercisable Percentage
	Upon completion of 2 years	50 %
	Upon completion of 3 years	75 %
	Upon completion of 4 years	100 %
Units Exercised	0 shares
Total Exercise Value	NT$0
Outstanding Units	2,500,000 shares
Exercise Price per Share	NT$43.65
Percentage of Unexercised Options to Total Issued Shares (%)	4.33%
Impact on Shareholders’ Equity	The shares underlying the employee stock options represent 4.33% of the Company’s total issued shares. Based on the above vesting schedule, the dilution effect on existing shareholders’ equity will be gradual over the vesting period and is considered limited.

b. As of the date of publication of the annual report, names of managers granted employee stock options and top ten employees ranked by shares issuable upon exercise of employee stock options, and status of grants, subscriptions, and exercises:

May 8, 2026

Unit: Thousand share/ NT$ Thousand

	Job title	Name	Number of shares granted	Percentage of Shares granted to Total Issued Shares	Exercised				Unexercised
					Number of shares Subscribed	Exercise price	Exercise Value	Percentage of Shares Exercised to Total Issued Shares	Number of shares Subscribed	Exercise price	Exercise Value	Percentage of Unexercised Options to Total Issued Shares
Managers	Chairman	Lin, Kuan-Ming	1,490	2.58%	0	0	0	0%	1,490	NT$43.65	65,039	2.58%
	President	Young, Yu-Che
	Vice President	Wang, Wen-Chang
	Senior Assistant Vice President	Chen, Kuo-Hsiung
	Senior Assistant Vice President	Hung, Chin-Piao
	Assistant Vice President	Liao, Li-Fen
	Assistant Vice President	Huang, Chien-Cheng
	Assistant Vice President	Tseng, Hung-Min
	Assistant Vice President	Chen, Yun-Chen
	Assistant Vice President	Wang, Chin-Yi
Employees	Senior Assistant Vice President	Wu, Guo-Liang	590	1.02%	0	0	0	0%	590	NT$43.65	25,754	1.02%
	Senior Assistant Vice President	Bai, Jing-Lin
	Senior Assistant Vice President	Wang, Sen-Tian
	Senior Assistant Vice President	Liu, Hou-De
	Manager	Chang, Li-De
	Manager	Huang, Shou-Ming
	Manager	Huang, Ai-Chen
	Manager	Li, Yen-Chin
	Manager	Hsu, Hsing-Nan
	Manager	Chiu, Chung-Tai
	Manager	Cheng, Hsien-Hui
	Senior Engineer	Wei, Ruei-Ting

c. Status of Private placement of employee stock option certificates for the last three fiscal years: none.

(2) Status of Restricted Employee Shares

The Company has no outstanding restricted employee shares as of the date of publication of the annual report.

Mergers, Acquisitions or Issuance of New Shares for Acquisition of Shares of other Companies: None.
Implementation Status of Capital Utilization Plans

(1) Description of the Plan

As of the end of the quarter preceding the publication date of this annual report, there are no prior issuances or private placements of securities that remain uncompleted, or that were completed within the last three years but have yet to yield the intended benefits: Not applicable.

(2) Implementation Status: Not applicable.

132 -

133 -

4. Business Overview

1. Business Content

(1) Scope of Business

a. Major Content of Business Operations

1) CC01060 Wired Communication Equipment Manufacturing
2) CC01070 Wireless Communication Equipment Manufacturing
3) CC01080 Electronic Component Manufacturing
4) CC01110 Computer and Peripheral Equipment Manufacturing
5) E605010 Computer Equipment Installation
6) F113070 Telecom Equipment Wholesale
7) F119010 Electronic Material Wholesale
8) F213060 Telecom Equipment Retail
9) I501010 Product Design Services
10) F401021 Telecom Radio Frequency Equipment Import
11) CC01101 Telecom Radio Frequency Equipment Manufacturing
12) ZZ99999 In addition to licensed business, the Company may operate business that is not prohibited or restricted by law.

b. Revenue Breakdown by Product Category
Unit: NT$ thousand

Product Items	2025
	Net Operating Revenue	Operating Contribution
Fiber NIC	23,256	2.30%
Fiber Switch	859,192	85.01%
Fiber Converter	38,931	3.85%
Network cards and related products	3,893	0.39%
Others	85,379	8.45%
Total	1,010,651	100.00%

Note: Network cards and related products include media converters and network switches. Others include sales of fiber optic transceivers, components, third party hardware, service income, maintenance income, and other operating income.

c. Current product lines

Product Category		Key Specifications
Interface Card	Fiber Optic	100M Ethernet : PCI , PCI-E , Cardbus , Express Card
Gigabit Ethernet : PCI , PCI-E , mini PCI-E , Express Card
10G Ethernet : PCI-E
	Copper	Arcnet : ISA
Switch	Fiber Optic	24-port 100Base-FX Switch
8/16/24 SFP ports Gigabit Switch
8/16/24 SFP ports Carrier Ethernet Gigabit Fiber Switch with 4-port 10G SFP+
12 SFP ports Carrier Ethernet Gigabit Fiber Switch with 12-port GbE RJ45
6/4 SFP ports Carrier Ethernet Gigabit Fiber Switch NID with 0/2-port GbE RJ45
8/12/14 SFP+ ports with 0/2-port 10G RJ45
16-port 10GSFP + 4-port mGbE/10GSFP Combo + 4-port 50GSFP-DD + 2-port 40GQSFP/4-port 25GSFP28
	Copper	5/8/16/24-port 10/100 Switch
5/8/16/24/48-port Gigabit Switch
24/48-port Gigabit Switch with 4-port 10G SFP+
16-port Gigabit Switch with 2-port SFP
8-port Carrier Ethernet Gigabit Switch with 2-port SFP
8/24-port 2.5G Switch with 2/4-port 10G SFP+
8/24-port PoE 10/100 Switch
8/12/24/48-port PoE 10/100/1000M Switch
24/48-port PoE Gigabit Switch with 4-port 10G SFP+
24-port Carrier Ethernet Gigabit Switch with 4-port 10G SFP+
8/24-port PoE 2.5G Switch with 2/4-port 10G SFP+
8/24-port PoE++ Gigabit Switch
8/16-port 10GbE Switch
36-port PoE GbE RJ45 + 12-port PoE 2.5GbE RJ45 + 4-port 10GSFP + 2-port 40GQSFP+
10-port PoE++ 10GbE RJ45 + 2-port 25G SFP28 (Sync-E + 1588 PTPv2)
12-port PoE++2.5GbE RJ45 + 12-port PoE++ 10GbE RJ45 + 4-port 25G SFP28 + 2-port 100GQ SFP28
36-port PoE++2.5GbE RJ45 + 12-port PoE++ 10GbE RJ45 + 4-port 25G SFP28 + 2-port 100GQ SFP28
Transceiver	Fiber Optic	Gigabit SFP Fiber Transceiver
10G SFP+ Fiber Transceiver
	Copper	Gigabit SFP Copper Transceiver
10G SFP+ Copper Transceiver

134 -

Product Category		Key Specifications
Converter	Fiber Optic	10Base-T/FL Converter
100Base-TX/FX Converter
10/100Base-TX/FX Converter
PoE 10/100Base-TX/FX Converter
1000Base-T/SX/LX Converter
RS-232/422/485 to Fiber Converter
Multi-/Single-mode Converter
100Base-FX · Gigabit · OC-3 · OC-12 · 10G
OLT Converter Module
ONU Converter
Converter Rack Chassis
	Copper	10Base-T/2 Converter
Industrial Networking		100Base-TX/FX Converter
1000Base-T/SX/LX Converter
RS-232/422/485 to Fiber Converter
8-port GbE RJ45 + 4-port GbE SFP Switch
8-port GbE RJ45 + 2-port GbE RJ45/SFP Switch
8-port GbE PoE+ RJ45 + 4-port GbE SFP Switch
8-port GbE PoE+ RJ45 + 2-port GbE RJ45/SFP Switch
6/4 SFP ports Carrier Ethernet Gigabit Fiber Switch NID with 0/2-port GbE RJ45
19” Rack Mount GbE Switch
Automotive Ethernet		8-port NBASE-T 4 pairs 2.5G RJ45 + 4-port one pair 2.5G Coax (FAKRA)
+ 4-port one pair 2.5G STP (HSD) + 1-port NBASE-T 4 pairs 10G RJ45
+ 2-port 10G SFP+ Cage + 1-port 4 pairs 10G AutoLink II Automotive Switch

d. New products planned for development

(1) 81GP+21G+21GF L3 network managed switch (CRPS)
(2) 241GP+410GF L3 advanced network managed switch (CRPS)
(3) 241G+410GF L3 advanced network managed switch (CRPS)
(4) 481GP+410GF L3 advanced network managed switch (CRPS)
(5) 481G+410GF L3 advanced network managed switch (CRPS)
(6) 41GP+41GPbt+21G+210GF L3 network managed switch
(7) 41GPbt+42.5GPbt+210GF L3 network managed switch
(8) 401GP+810GPbt+225GF L3 advanced network managed switch (MACsec)
(9) 825GF L3 advanced network managed switch (MACsec)
(10) 810GPbt+410GF L2+ intelligent network managed switch
(11) 242.5GPbt+410GF L2+ intelligent network managed switch
(12) 82.5GPbt+210GF L2+ intelligent network managed switch
(13) 2410GPbt+440GF L2+ intelligent network managed switch

(14) 2410GPbt+425GF L2+ intelligent network managed switch
(15) 2410GF+440GF L2+ intelligent network managed fiber switch
(16) 2410GF+425GF L2+ intelligent network managed fiber switch

(2) Industry Overview

a. Industry overview and trends

1) Wired Network Equipment

With the increased prevalence of internet applications such as AI/5G/IoT/Mobile Backhaul/Online Games/Video Conferencing/Cloud Services/Internet of Things the online population has grown exponentially and has caused a surge in network traffic. This has rapidly increased the demand for aggregated network capacity in metropolitan areas. As a result, the demand for networks and equipment designed specifically for data transmission services will inevitably grow. Fiber optic Ethernet networks featuring low cost, high speed, simplicity and reliability are the key to resolving network bottlenecks in metropolitan areas.

2) Industrial Wired Network Equipment

Due to the many advantages of Ethernet communication and transmission, especially seamless IT integration and unmatched bandwidth, industrial Ethernet is gradually replacing traditional fieldbuses and being applied in factory production monitoring, transportation monitoring, power monitoring and other industrial automation controls and various IoT applications. In addition, as IP cameras are also gradually replacing traditional analog surveillance cameras for security monitoring, there will be an inevitable growth in demand for industrial-grade fiber optic network equipment designed for harsh environments. An estimated $5 - 10\%$ CAGR is expected in the next 5 years.

b. Supply chain structure and correlation

c. Product development trends

1) Network Interface Cards (NICs)
LOM (LAN on Motherboard) has replaced the demand for 10/100 and Gigabit network cards. However, for industrial and military applications that require stability, security and long distance wired data transmission, fiber optic network cards are still used.

2) Hubs
The overall production volume of hubs is expected to continue to decline, with switches replacing them.

3) Switches
Sales of Gigabit (1000M) switches have exceeded 10/100M switches and have become the mainstream in the market. AI applications, 5G infrastructure applications and industrial smart applications are markets with higher growth potential for switch demand in the future. Higher speed switches of 2.5G/10G/25G/40G/100G are also gradually developing in the market. Unmanaged switches are used in SOHO environments. Smart switches with one or more fiber optic ports and VLAN functions have been widely used in Fiber to the Building (FTTB) and Fiber to the Curb (FTTC) applications. However, due to operation, management and maintenance requirements, telecom operators will gradually require L2 switches with fiber optic ports with SNMP network management features. 2 x GbE Combo + 8 x 10/100/1000 is the most suitable configuration for FTTH clients; 2 x 10GbE SFP+ + 24 x 10/100/1000 and 4x 10GbE SFP+ + 48 x 10/100/1000 with network management have become the mainstream products for enterprise users. Fully optical switches, such as 2/4 x 10G + 24 x GbE managed L2/L3 switches, are expected to be widely deployed at FTTX central offices. Carrier Ethernet - 802.3ah Link OAM ~ 802.1ag end-to-end Service OAM ~ 1588v2 PTP ~ Sync-E and Y.1731 Performance Monitoring will increasingly become essential for switches used in FTTX access networks and 5G endpoints. PoE (Power over Ethernet) switches supply power to connected PD devices such as IP phones, IP cameras, Wifi APs, smart lighting and HDMI over IP through Ethernet cables. With the thriving development of Internet of Things and 5G networks, demand will increase significantly.

4) Copper-Fiber Conversion Equipment
Copper-fiber conversion equipment was originally used for long-distance wired connections between local area networks (LANs) and for backbones of large local area networks, with limited demand. However, with the increasing popularity of the Internet and the growing demand for real-time transmission of data, audio and video content through the Internet, the bandwidth provided by existing broadband transmissions such as ADSL and Cable Modem cannot meet the demand. Therefore, advanced countries are actively promoting FTTX plans. Copper-fiber conversion equipment mainly consists of copper-fiber converters, which can be divided into 10M, 100M, Gigabit and 10G copper-fiber converters by transmission speed; and into multi-mode and single-mode fiber-copper converters by fiber type. Single-mode fiber-copper converters include dual-core fiber-copper converters and single-core fiber-copper converters. Copper-fiber converters are used in pairs. Telecom FTTX applications have gradually begun to require managed copper-fiber converters for operations, management and maintenance. The next generation of copper-fiber converters are also required to support Carrier Ethernet capabilities.

137 -

138 -

5) Industrial Network Equipment

Commercial network products work in environments from 0-40°C and are not designed to protect against dust and humidity. As Ethernet has gradually become the standard for industrial networks, the demand for industrial grade network products from applications such as industrial controls, outdoor environments, and military continues to increase. Industrial grade network products are generally divided into two grades: the basic grade supports operating temperatures from -10°C to +60°C and dust/water resistance grade IP31 and above; the advanced grade supports operating temperatures from -40°C to +75°C and dust/water resistance grade IP53 and above. The products with higher market demand are 100M Ethernet fiber optic converters, Gigabit fiber converters, RS-232/422/485 fiber converters, and 5~8-port 10/100/1000 switches that support fast fiber optic redundant chain links. DIN-RAIL mounting and redundant power supplies are also indispensable features of industrial grade network equipment.

d. Market competition

1) Network Interface Cards (NICs)

In 2009, due to the merger of HP and 3COM, 3COM, which previously accounted for most of the market share of fiber optic NICs, has gradually faded out. Globally, there are few professional manufacturers active in this market other than the company and Allied Telesys in the United States. Allied Telesys products mainly use Broadcom chips with higher costs and longer lead times compared to the company.

2) Network Switches

The Company's switches are mainly used in FTTH operator sites and subscriber sites and enterprise networks. Major foreign competitors are Cisco, HP, Extreme, Netgear, Alcatel-Lucent, and Juniper, while major domestic competitors are Accton, Alpha, and MitraStar.

3) Fiber Converters

The Company's fiber converters are used in FTTH access networks. Major foreign competitors are Telco Systems, Omnitron, Transition, and MRV.

(3) Overview of Technology and R&D:

a. R&D expenditures in most recent fiscal year and as of the date of publication of the annual report

Unit: NT$ thousand

Year	2025	May 8, 2026
R&D Expense	83,780	32,154

b. Successfully developed technologies and products

(4) 24-P PoE+(30W) 1G RJ45+2-P 1G RJ45/SFP intelligent network managed switch
(5) 8-P 1G RJ45+2-P 1G RJ45/SFP network managed switch
(6) 8-P PoE(15W) 1G RJ45+2-P 1G RJ45/SFP network managed switch
(7) 24-P PoE(15W) 1G RJ45 + 2-P 1G RJ45/SFP network managed switch
(8) 24-P 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(9) 24-P PoE+(30W) 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(10) 24-P 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(11) 20-P 1G SFP + 4-Port 1G RJ45/SFP + 4-P 10G SFP+ L3 advanced network managed fiber switch
(12) 12-P PoE++(90W) 1G RJ45 + 12-P PoE++(90W) 2.5G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(13) 16-P PoE(15W) 1G RJ45 + 2-P 1G RJ45/SFP intelligent network managed switch
(14) 20-P 1G SFP + 4-P 1G RJ45/SFP + 4-P 10G SFP+ L3 advanced network managed fiber switch
(15) 12-P 10G SFP+ + 2-P 25G SFP28 L3 Ultra-High-Speed network managed fiber switch
(16) 24-P 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(17) 48-P PoE+(30W) 1G RJ45 + 4-P 10G SFP+ L3 advanced network managed switch
(18) Industrial 2-P PoE++(90W) 1G RJ45 +2-P 1G SFP outdoor managed Switch
(19) 8-P PoE(30W) 1G RJ45 basic managed switch
(20) Industrial 8-P PoE+ (30W) 1G RJ45 + 2-P 1G SFP L3 advanced network managed fiber switch
(21) 20-P 1G SFP + 4-P 1G RJ45/SFP + 4-P 10G SFP+ L3 advanced network managed fiber switch
(22) 24-P 1G RJ45 + 2-P 1G SFP basic managed switch

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

a. Short-term business development plans

1) Marketing strategy

a) Strengthen e-Marketing, exhibition participation and direct customer visits to expand potential customers and further increase market share.
b) In line with market trends and customers' product plans, actively develop next-generation network products to consolidate and expand the business of existing customers.
c) Leverage existing customers' sales networks to promote new product lines and expand business scale.
d) Establish a customer issue tracking system so customers can check the status of issue resolution anytime to improve customer satisfaction.

2) Production strategy

a) Improve productivity, production efficiency and expand production capacity.

b) Strictly control product quality, delivery dates, and actively manage material status with suppliers and customers.
c) Coordinate product R&D progress and production and sales to shorten the timeline for launching new products into mass production.
d) Comprehensively enhance personnel quality and continue to improve quality to increase product yields and reduce manufacturing costs.
e) Empower and assign responsibilities at all levels to promptly resolve production issues, keeping track of production progress and delivery dates.

3) Product development direction

a) Switches

In response to market demands for higher bandwidth, applications and energy saving/carbon reduction needs, the Company has developed a series of products as the base for derived designs of project-specific managed switches going upwards, and at the same time, cost-effective Web Smart switches going downwards. In addition, various 802.3bt PoE++, high speed 2.5G/5G/10G/25G/40G/100G, L3 and SDN switches have been developed targeting the high growth potential 5G infrastructure and industrial smart application markets. This is to build a complete and competitive product line to serve customers with one-stop shopping and increase customer stickiness and loyalty. In addition, cloud-based application services have been developed to further enhance the competitiveness of the Company's products by providing sales and technical support to customers.

b) Fiber Optic Network Products

For the various fiber converters and network cards developed, focus models will be selected for design review to develop more cost-effective products to increase market competitiveness and further improve gross margins.

c) Industrial Network Products

Continue to develop basic grade industrial network products supporting -20°C to +60°C operating temperatures, such as managed Web Smart 8/24-port Gigabit PoE switches, managed L2+ 2-port 10G SFP+ + 8/24-port 10/100/1000 PoE/Carrier Ethernet switches. Develop advanced grade 8-port 10/100/1000/10G PoE switches, 8/24-port 10/100/1000 switches and managed L2+ 2-port 10G SFP+ + 8/24-port 10/100/1000 switches operating from -40°C to +75°C.

4) Operating scale

a) Expand operating scale across the board in response to future growth needs by purchasing equipment and introducing new production technologies.
b) Conduct human resource training and utilization and introduce new ERP/PLM systems to assist in information management.

b. Long-term business development plans

1) Marketing strategy

a) Establish marketing offices in major markets to quickly respond to and satisfy customer needs.
b) Seek strategic alliances with competent component vendors to establish advanced development technologies and maintain competitive advantages.

140 -

c) Continuously strengthen new business development operations and coordinate with R&D personnel to expand business development with reputable manufacturers.

2) Production strategy
a) Expand production scale and construct automated production test equipment to obtain OEM and ODM orders.
b) Plan overseas manufacturing sites, nurture international talents, and reduce domestic production costs to enhance overall competitiveness.
c) Leverage information systems to integrate customer orders, procurement, production scheduling, manufacturing to shipment, finance, as well as costing and other operations to keep track of production progress, costs, quality and delivery dates.
d) Continuously strengthen training on production, process and quality control to provide customers with better quality assurance.

3) Product development direction
a) Include Network products with high value-add software, such as L3 switches, 10G/25G/40G/100G switches, 802.3bt PoE++ switches, SDN OpenFlow switches, Carrier Ethernet network switches.
b) Develop industrial grade network products with dustproof and waterproof features that support -40°C to +75°C operating temperatures for outdoor, military and industrial environments.
c) Continuously develop related application platforms for network products, launch and operate services for existing customer base, and timely develop new features based on customer needs.

4) Operating scale
a) Develop towards an enterprise cluster model to cope with operational scale expansion.
b) Plan and work towards adding overseas manufacturing sites to enhance competitiveness and meet customer needs.
c) Continuously expand market share, launch new product lines and promote international operations.

141 -

2. Market, Production and Sales Overview

(1) Market analysis

a. Sales regions of major products

Unit: NT$ thousand

Year Sales region	2024		2025
		Net Operating Revenue	%	Net Operating Revenue	%
Export Sales	Asia	227,295	22.32	78,816	7.80
	Americas	339,455	33.33	266,242	26.34
	Europe	385,270	37.83	584,089	57.79
	Others	2,831	0.28	4,525	0.45
	Subtotal	954,851	93.76	933,672	92.38
Domestic Sales		63,562	6.24	76,979	7.62
Total		1,018,413	100.00	1,010,651	100.00

b. Market share

Rubytech focuses on the R&D, manufacturing and marketing of fiber optic communication products. The main products include fiber NICs, converters and switches. By early investments in R&D on PoE, 10G and Carrier/Sync Ethernet technologies and being first to market with a complete line of fiber optic switches, Rubytech provides quality products and services for the world's most in-demand applications such as FTTH, IP Phone, IP Surveillance, connectivity and power supply for Wireless Access Point, and 5 cell site backhaul. In response to IoT and Industry 4.0 application trends, Rubytech has built-in DMS (Device Management System) in our switches, providing MIS personnel management by mobile devices and tablets to maintain and manage all IoT devices connected to the switches. The patented DMS technology in the U.S., Japan, Europe, and Taiwan since late 2018 continually enhances our product and sales strengths to achieve growth in performance and profits.

c. Future market supply and demand, and growth potential

1) Network Interface Cards

The demand for twisted pair network cards has been replaced by LOM. Domestically, the Company is one of the few suppliers that provide a full line of fiber NICs, a niche product with higher gross margins.

2) Network Switches

As the sales prices of Gigabit switches have fallen to less than 2 times that of 10/100M switches, demand has increased significantly. Unmanaged Gigabit switches face intense market competition due to the large number of suppliers. Managed Gigabit and 10G switches are expected to have greater growth potential in the future. 5G infrastructure applications and industrial smart applications are markets with higher switch demand growth potential in the future. In addition, with the rapid increase in the integration of voice, video and imaging applications in offices in recent years, coupled with the continued decline in Gigabit MAC costs, it is expected that Gigabit will completely replace 10/100Mbps Ethernet in

the next few years and market demand for speeds of 2.5G/10G/25G/40G will continue to accelerate. Fully fiber optic switches have grown rapidly due to the popularity of fiber optics and the demand for industrial, military, and broadband Internet access. With the rapid growth of IP phones, IP surveillance, and wireless network applications, the demand for 10/100Mbps & Gigabit PoE switches will also increase exponentially each year. For telecom access networks, operator site and user site switches already require Carrier Ethernet OAM capabilities: 802.3ah Link OAM, 802.1ag end-to-end Service OAM, Y.1731 Performance Monitoring, 1588v2 PTP and Sync-E.

3) Network Transceivers

SFP (Small Form Factor Pluggable) fiber transceivers support different transmission speeds and distances, have industry standards, and with the thriving global FTTX infrastructure construction, the SFP fiber transceiver market will see explosive growth.

4) Fiber Media Converters

The demand for traditional UTP to Coax media converters has reached saturation. However, UTP to Fiber converters have grown by about 30% due to FTTX (Home/Building/Curb) application needs. Demand for single mode fiber-copper converters and WDM single fiber-copper converters is also increasing daily. The Company is one of the few domestic companies that can provide a full range of fiber converters.

5) Industrial Network Equipment

As Ethernet gradually becomes the standard for industrial networks, industrial grade equipment such as industrial computers, industrial monitoring, and industrial networks have seen explosive growth in recent years. The Company has developed industrial grade Ethernet fiber optic converters, RS-232/422/485 fiber converters and switches with higher market demand.

d. Competitive niche

1) Comprehensive product line and integration enhances competitiveness

The Company's products emphasize integration, with a comprehensive product line and strong integration capabilities to increase product value-add and provide complete solutions to customers, which is advantageous for market competition.

2) Strong R&D capabilities, leading technology domestically and internationally

The Company has always emphasized R&D and has continuously built up core technologies and excellent R&D capabilities for wired and wireless network products over the years.

3) Sound management performance enhances corporate competitiveness

The Company's management team and key personnel all have more than 10 years of expertise and experience in the network industry. With an honest and pragmatic attitude and solid organizational structure, the Company has strong foundations and keeps abreast of industry trends and market demands, maintaining optimal status within the organization at all times to respond to fierce competition in the industry environment.

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4) Early entry into the fiber optic field

Product quality and performance have been recognized by customers. The integration of voice, video, and imaging over fiber optics in local area networks will soon be realized. Non-fiber-optics will not suffice, and the need for fiber optics will continue to grow.

e. Favorable and unfavorable factors for future development and countermeasures

1) Favorable factors

a) Arrival of broadband era with continued growth in network market

With the rapid development of high-information industries such as global Internet services, e-commerce, and telecommunications, the number of internet users has surged dramatically. To meet users' growing demands for faster transmission speeds and higher-quality network performance, the market has steadily advanced toward broadband solutions. In recent years, the global push toward enterprise networks integrating Intranet and Internet-based cloud applications, along with AI-related innovations, has further highlighted the promising outlook for the networking industry. The Company, with a dedicated focus on the development of broadband networking products, is well-positioned to sustain growth in alignment with future trends.

b) Strong R&D capabilities, leading technologies domestically and internationally

The Company has always emphasized R&D and has continuously built up core technologies and excellent R&D capabilities for wired and wireless network products over the years. In particular, R&D and manufacturing focuses on the technically more advanced fiber optic network cards, including 10M, 100M, Gigabit and 10G fiber NICs. In addition, various advanced managed switches have been developed, with customers covering industrial, military, telecom and large enterprises, mostly leading over peers in terms of specifications and technologies. The Company's advanced management software has also obtained a number of R&D patents in the US, Japan, Europe, and Taiwan, further enhancing product competitiveness.

c) Comprehensive product line and integration enhances competitiveness

The Company's products emphasize integration, with a comprehensive product line covering network cards, switches, industrial network application products and copper-fiber conversion equipment, focusing on smart broadband network products with management functions that have strong integration capabilities to increase product value-add and provide complete solutions to customers, which is advantageous for market competition. In addition to obtaining patents in major countries/markets, the related cloud-based application service platforms for network products have also officially launched services and are constantly developing new features based on customer needs, comprehensively enhancing product competitiveness.

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d) Focus on operational management performance to strengthen corporate competitiveness

The Company's management team and key personnel all have more than 10 years of expertise and experience in the network industry. With an honest and pragmatic attitude and solid organizational structure, the Company's team pays close attention to industry trends and market demands, keeping the internal organization in optimal condition at all times to respond to the intense competition in the industry environment.

2) Unfavorable factors and response countermeasures

a) Price erosion of unmanaged switches and converters, facing competitive pressure with increasingly shorter product life cycles in the electronics industry, pricing pressure and difficulties in operations have increased.

Responsive measures: The Company has improved production and testing methods and invested in production automation to improve production efficiency, reduce production costs, increase in-house production of components, and expand market share to achieve economies of scale. The Company continues to develop new products and value-added products such as Carrier Ethernet, L3, PoE++, SDN, 10G/25G/40G/100G switches and industrial wired network equipment, so that low value-added unmanaged equipment accounts for a gradually decreasing percentage of total revenue.

b) Upward trend in domestic labor costs

In recent years, changes in the social and economic structure have resulted in lack of willingness to work in manufacturing industries, leading to labor shortages and upward pressure on overall domestic labor costs. This has weakened the competitiveness of the manufacturing industry, which faces difficulties in cost reduction.

Responsive measures: The Company has adjusted its product mix, phased out obsolete and low-margin products, and increased the production and sales of high value-added products to increase gross margin and alleviate cost pressures.

c) Difficulty in recruitment of R&D talent

In the past, whether the government or private sector focused their resources mainly on the semiconductor industry, squeezing out resources available to other industries such as fiber optic communications. As a result, domestically we are at a disadvantage compared to foreign competitors.

Responsive measures: The Company conducts regular internal and external training for employees to enhance professional knowledge and nurture outstanding talent, as well as

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improve productivity of existing R&D personnel. We also recruit R&D talent through the alternative military service system for long-term talent cultivation. On the other hand, the Company also provides employees with a good working environment and adopts employee profit sharing and restricted employee rights schemes to allow employees to participate in the Company's growth, thereby increasing their sense of identity and further reducing turnover.

(2) Major applications and manufacturing processes of principal products

a. Major applications of principal products

Main Products		Major Applications
Interface Card	Fiber Optic	Provide fiber NICs as basic devices for computers to connect to networks and transmit data.
	Copper	Basic devices for computers to connect to networks and transmit data.
Switch	Fiber Optic	Provide switches as the main transmission equipment for network connections.
	Copper	Main transmission equipment used to connect two or more PCs and various application terminals.
Transceiver	Fiber Optic	Provide Ethernet fiber transceiver interfaces.
	Copper	Provide Ethernet copper transceiver interfaces.
Converter	Fiber Optic	Used for conversion between twisted pair cabling and fiber optics for network transmission.
	Copper	Used for conversion between different copper network media, such as conversion between coaxial cable and twisted pair.
Industrial Networking		Used in harsh environments, requiring ability to withstand high and low temperatures and be dust proof and waterproof.

b. Manufacturing processes

(3) Supply status of major raw materials

Major Raw Materials	Supply Status
Fiber transceivers	Domestic supply, good
Control chips	Domestic supply, good
Printed circuit boards	Domestic supply, good
Power supplies/ Transformers/ Converters	Domestic supply, good
Enclosures	Domestic supply, good

(4) Names of suppliers/customers accounting for more than 10% of total purchases (sales) in either of the most recent two fiscal years, their purchase (sales) amounts and percentages, and reasons for their variations

a. Major suppliers

Unit: NT$ thousand

Item	2024				2025				FY2026 Q1
	Name	Amount	% of Total Annual Purchase Amount	Relationship with Issuer	Name	Amount	% of Total Annual Purchase Amount	Relationship with Issuer	Name	Amount	% of Total Annual Purchase Amount	Relationship with Issuer
1	A	99,570	23.65	None	A	97,053	19.34	None	A	55,184	25.47	None
	Others	321,426	76.35	-	Others	404,733	80.66	-	Others	161,518	74.53	-
	Purchase Amount	420,996	100.00	-	Purchase Amount	501,786	100.00	-	Purchase Amount	216,702	100.00	-

Starting from the first quarter of fiscal year 2026, the safety stock levels of major chips were increased to shorten shipment lead times.

b. Major customers

Unit: NT$ thousand

Item	2024				2025				FY2026 Q1
	Name	Amount	% of Total Annual Sales Amount	Relationship with Issuer	Name	Amount	% of Total Annual Sales Amount	Relationship with Issuer	Name	Amount	% of Total Annual Sales Amount	Relationship with Issuer
1	a	216,137	21.22	None	a	357,166	35.34	None	a	127,507	47.28	None
2	b	192,649	18.92	None	b	149,851	14.83	None	b	50,566	18.75	None
3	d	119,538	11.74	None	c	140,868	13.94	None
	Others	490,089	48.12	-	Others	362,766	35.89	-	Others	91,605	33.97	-
	Net Sales	1,018,413	100.00	-	Net Sales	1,010,651	100.00	-	Net Sales	269,678	100.00	-

Customer a:

Significant sales growth in 2025 due to new project completion and mass production.

Customer b:
Decreased sales due to inventory destocking (market slowdown/weak promotion) and failure to win local government tenders.

Customer c:
Increased shipments since H1 2025 due to the customer's higher safety stock policy.

Customer d:
All shipments for the completed new project were fulfilled in 2024. completed the development of new projects and shipped all products in 2024.

Information on Employees in Most Recent Two Fiscal Years and as of the Date Publication of the Annual Report

Year		2024	2025	May 8, 2026
No. of Employees	Direct Labor	15	15	15
	Indirect Labor	25	25	25
	Management	80	83	84
	Total	120	123	124
Average Age		47.70	47.30	47.41
Average Years of Service		15.17	14.74	14.78
Education Distribution Ratio	PhD	0.00%	0.81%	0.81%
	Master	10.83%	9.76%	11.29%
	Bachelor	72.50%	71.55%	70.16%
	High School	12.50%	14.63%	14.52%
	Below High School	4.17%	3.25%	3.22%

Information on Environmental Protection Expenditure

In recent years and as of the date of publication of the annual report, the Company has not suffered any losses (including compensation and violations of environmental regulations) and discloses estimated current and future amounts as well as responsive measures. If the impact cannot be reasonably estimated, the factual reasons for inability to reasonably estimate should be stated:

The Company has not been penalized or compensated by environmental protection authorities for environmental pollution in recent years and up till the date of publication of the annual report.

Labor Relations

Ruby Tech attaches great importance to the rights and interests of employees. In addition to formulating human rights policies in accordance with internationally recognized human rights standards such as the "International Covenant on Civil and Political Rights" and the "International Covenant on Economic, Social and Cultural Rights", the Company is committed to providing employees with a safe, healthy and dignified working environment, implementing equal employment opportunities, fair compensation and promotion opportunities, ensuring that employees are not discriminated against, harassed or treated unequally due to race, gender, religious beliefs, age, nationality, place of birth, disability, political inclination or any other status protected by applicable laws and regulations. The Company has also formulated the "Measures for Complaints and Disciplinary Actions for Workplace Sexual Harassment" and provided complaint channels to safeguard the rights and interests of employees.

The Company's guidelines and specific management measures for implementing the human rights policy are as follows:

(1) Human rights, diversity in the workplace and gender equality policies:

a. Provide employees with a safe and healthy working environment.
b. Eliminate illegal discrimination to ensure equal employment opportunities.
c. Implement gender equality and strictly prohibit sexual harassment.
d. Prohibit child labor.
e. Prohibit forced labor.
f. Attach importance to employees' mental and physical health and work-life balance.
g. Good communication between labor and management.
h. Regularly review and evaluate relevant systems and operations.

(2) Zero Recruitment Fees Policy:

To uphold the fundamental human rights of our employees (including international migrant workers) and ensure compliance with the regulations of the International Labour Organization, the International Organization for Migration, various international conventions, and the local Labor Standards Act, the Company strictly prohibits charging any form of recruitment fees to job seekers during the application and onboarding processes. This policy is established to safeguard labor rights and interests.

(3) Management measures:

The Company's implementation of various employee welfare measures, training, retirement systems and status of agreements with labor and measures to safeguard employee rights and interests:

a. Employee welfare measures

To safeguard employee welfare, the Company has established employee welfare measures in accordance with the law and set up an employee welfare committee in 1999. In addition, in order to enhance labor-management cooperation, improve work efficiency, and share the fruits of operations between labor and management, the Company provides comprehensive welfare systems and measures so that every employee can achieve balanced development at work and in life.

1) Labor insurance, National Health Insurance, group insurance and occupational accident insurance.

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2) Year-end bonuses.

3) Employee rewards, treasury stock transfers, employee stock options, and new shares with restricted employee rights.

4) Annual employee tours, cultural and festival parties, and departmental dinners.

5) Holiday bonuses for 3 major holidays, marriage bonuses, childbirth bonuses, birthday cash gifts, injury and illness condolences and funeral condolences.

6) Special paid leave in accordance with the Labor Standards Act, with remaining leave days compensated in wages upon expiry, and written notification to employees.

7) Annual health examination for employees.

8) Arrange occupational health nurse for consultation every week; occupational doctors provide health services in the field every quarter.

9) Provide lactation room and contracts signed with qualified kindergartens to assist staff with childcare matters.

b. Training, further education

To work towards sustainable development and maintain competitiveness, the Company has established education and training management measures for employees to follow and provides education and training subsidies. Each employee can freely choose internal or external training courses relevant to work profession.

1) New employee training

Training courses are planned for new employees to understand the Company's rules, regulations and overview.

2) Professional competence training

Internal training courses are planned, or employees are sent for external courses based on the professional competence of each department, to enhance personal expertise and skills, including professional technical training and business training.

3) Training and further studies for supervisors

a) Various management talent training is arranged for supervisors at all levels based on their characteristics to build common visions and consensus.

b) For information on manager training relating to corporate governance, please refer to page 61 of this annual report.

4) General education

a) Fire safety training is planned every year to maintain employee safety.

b) Education and training on business integrity and sustainable development is conducted annually to advocate relevant policies, including the "Code of Ethical Conduct", "Major Internal Information Handling Procedures", "Business Integrity Operational Procedures and Code of Conduct", "Insider Trading Prevention Management Measures", "Sustainable Development Best Practice Principles", "Human Rights Policy", "Zero Recruitment Fees Policy", "Plan for Preventing Unlawful Infringement in the Performance of Duties", and "Personal Data Protection and Management". Relevant information is posted on the Company's electronic bulletin board for employees' reference.

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5) Licensing, further studies and training relating to transparent financial reporting

a) The Company's Corporate Governance Officer continue to participate in training courses organized by the Taiwan Corporate Governance Association and Accounting Research and Development Foundation in Taiwan.
b) The Company's Head of Finance and Accounting continues to participate in "Continuing Education Courses for Heads of Finance and Accounting" organized by the Accounting Research and Development Foundation in Taiwan.
c) The Company's internal audit staff continue to participate in training courses organized by the Institute of Internal Auditors, ROC or Accounting Research and Development Foundation in Taiwan.
d) A finance staff of the Company continues to participate in "Continuing Education Courses for Internal Auditors (including representatives) of Public Companies" organized by the Accounting Research and Development Foundation in Taiwan.

6) Status of further studies and training is as follows

Unit: NT$ thousand

Item	No. of Classes	Total Attendees	Total Hours	Total Expenses
New Employee Training	7	10	20	472
Professional Competence Training	49	169	498
Management Talent Training	1	1	6
General Education	19	324	552
Total	76	504	1,076	472

c. Retirement system

The Company has established a labor retirement reserve supervisory committee in accordance with regulations to supervise retirement fund appropriations and related matters. Meetings are held quarterly to review contribution status. It was resolved at meetings to appropriate 3% of total monthly salaries to the old system retirement fund each month, deposited into a dedicated account at Bank of Taiwan. At each year end, the estimated retirement funds for employees meeting retirement conditions in the following year are calculated and any shortfall is appropriated. Payment and calculation methods for retirement funds follow Labor Standards Act regulations.

The Company has established "Employee Retirement Measures" that clearly define the application procedures and conditions for retirement and procedures for claiming retirement payments under the old system.

The Labor Pension Act has been in effect since July 1, 2005 and adopts a defined contribution plan. After implementation, employees can choose to apply the retirement pension provisions of the Labor Standards Act or the Labor Pension Act. For employees who choose to apply the Labor Pension Act, the company contributes 6% of the employee's monthly insured salary every month.

d. Code of conduct for employees

For codes of conduct and ethics for employees, the Company has formulated a number of relevant measures and provisions that are announced on the Company's internal network for employees to refer to at any time as the code of conduct. The related measures and main contents are summarized as follows:

1) Work rules

In accordance with relevant laws, the Company has formulated work rules to clearly define the rights and obligations of labor and management. The main provisions include: recruitment, employment, service discipline and communication, working hours and attendance, leave, salary and bonuses, employee benefits, performance appraisal, promotion, rewards and penalties, termination and retirement, occupational hazard compensation, bereavement, safety, health, labor-management meetings.

2) Personnel employment management measures

Upon employee onboarding, an employment contract is signed, which specifies job duties, positions, entitlements, etc. To protect the Company's business assets, employees are required to comply with trade secret rules, non-competition, and non-disclosure of trade secrets with others.

3) Authorization limits

Implementation of accountability, deputies at all levels, and formulated authorization limit tables for compliance by all departments to ensure normal operations of the Company's businesses.

4) Performance appraisal measures

To enable fair, impartial, and transparent performance appraisals and work performance of all employees and achieve clear rewards and penalties to improve overall work efficiency and management performance, performance appraisal measures have been formulated for compliance.

5) Employee rewards and disciplinary measures

In addition to rewards being categorized into commendations, small credits and major credits, and penalties being categorized into reprimands, minor faults and major faults in the work rules, employee reward and disciplinary measures have been separately formulated. Rewards lead to score additions and deductions that affect year-end bonuses.

6) Measures for complaints and disciplinary actions for workplace sexual harassment

To provide a work and service environment free of sexual harassment for employees and job seekers, and take appropriate preventive, corrective, disciplinary and handling measures, the Company has formulated measures and employee complaint channels to regulate employee conduct in the workplace.

7) Measures to prevent unlawful infringement when performing duties

To prevent employees from being subjected to physical or mental infringement by others when performing their duties, the Company has formulated these measures to avoid occurrence of violent acts.

e. Measures to protect the working environment and personal safety of employees

To prevent occupational hazards and protect labor safety and health, the Company has appointed occupational safety and health management personnel, and formulated Safety and Health Work Rules in accordance with Article 34 of the Occupational Safety and Health Act, defining safety management matters for employee compliance.

1) Work environment safety

a) Office areas are kept tidy, clean, adequately ventilated and with suitable temperature and humidity. Disinfection is carried out annually.

b) Indoor and outdoor lighting is kept bright with clear visibility in all areas, especially at night near entrances, exits and parking lots.

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c) Public building safety inspections are conducted regularly.
d) Access control and visitor registration are implemented to ensure employee safety.
e) Noise decibel tests are conducted monthly to ensure employee health.
f) Fire drills are conducted monthly to check functionality of emergency lighting, safety doors, fire extinguishers and escape routes.
g) Radiation site monitoring, drinking water E. coli tests, carbon dioxide concentration measurements and n-hexane measurements are conducted as required each quarter, half-yearly and yearly respectively.
h) Regulated workspace environment monitoring is conducted regularly to ensure compliance with standards.

2) Equipment safety
a) Installation and maintenance of electrical equipment (including repairs, fuse replacements, etc.) is handled by licensed electricians or experienced electrical workers.
b) Electrical appliances, wires, switches, and insulation should be checked for damage immediately. Operations should cease and supervisors informed in case of damage or leakage.
c) Inspections of all electrical equipment are conducted annually.
d) Company vehicles undergo regular maintenance, with pre-departure checks to ensure driving safety.
e) Operation of radioactive materials and equipment capable of emitting ionizing radiation is only handled by personnel who have undergone prescribed training and obtained radiation safety certificates or licenses.

3) Employee personal safety
a) Occupational safety and health education and training sessions are conducted annually. In 2025, sessions were held on May 8 and November 13, with 20 and 19 attendees, respectively.
b) "Disaster Emergency Response Management Measures" and "Emergency Response Management Procedures" have been formulated to ensure emergency response capabilities. Disaster response drills are held annually, with a drill conducted on May 14, 2025.
c) Sufficient first aid medicines and equipment are prepared according to the size and layout of workplaces, hazard conditions and number of employees. First aiders are appointed to provide first aid. First aid medicines and equipment are checked and replenished/replaced monthly. First aider training is conducted in accordance with Occupational Safety and Health Education and Training Regulations.
d) The Company conducts general and special occupational health examinations for employees annually. The 2025 health examinations were implemented on August 22.
e) "Hazard Prevention Plan for Work-related Musculoskeletal Disorders" has been formulated to avoid repetitive motion injuries to employees performing repetitive tasks due to poor posture, exertion and high operation frequency through regular questionnaires to identify and assess high risk groups,

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conduct interviews and provide guidance during weekly nurse on-site services, document implementation status and retain records as per regulations.

f) "Disease Prevention Plan for Abnormal Workloads" has been formulated to avoid illness from employees working long hours due to abnormal workloads through regular questionnaires to identify and assess high risk groups, conduct interviews and provide guidance during weekly nurse on-site services, document implementation status and retain records as per regulations.

g) "Measures to Prevent Unlawful Infringement when Performing Duties" have been formulated to prevent employees from being subjected to physical or mental infringement by others when performing their duties. Annual education courses are held to provide information on reporting channels and procedures. In 2025, these courses were held on May 8 and November 13, with 20 and 19 attendees, respectively.

h) A "Workplace Maternity Health Protection Plan" has been formulated to implement hazard assessment, control, and tiered management of maternity health protection measures for female employees with workplace maternity health hazards, to protect the health of expectant mothers and fetuses. A dedicated breastfeeding room has also been set up to provide a friendly maternal workplace.

i) To provide a work and service environment free from sexual harassment for employees and job seekers, appropriate preventive, corrective, disciplinary and handling measures have been formulated along with the Measures for Complaints and Disciplinary Actions for Workplace Sexual Harassment and employee complaint channels to regulate employee conduct in the workplace. Education courses are held annually. In 2025, these courses were held on May 8 and November 13, with 20 and 19 attendees, respectively.

j) In accordance with the Labor Health Protection Rules, healthcare professionals have been engaged since 2020 to provide services in the field to care for employee health. Based on employees' health examination results, occupational health nurse for consultation every week; occupational doctors provide health services in the field every quarter.

f. Agreements between labor and management

The Company has always complied with government laws and regulations, valued labor rights and interests, and handled matters such as employee recruitment, termination, retirement, and welfare measures based on relevant laws and regulations as the foundation. As such, labor-management relations have always been harmonious without any losses due to labor-management disputes since the Company's establishment.

g. Measures to safeguard employee rights

1) "Labor-Management Conference Implementation Measures" require regular quarterly labor-management conferences to communicate and coordinate on important matters through labor and management representatives, to safeguard labor rights and interests and labor-management harmony. Employees are also notified through internal memos of any major operational changes that significantly impact them. Labor-management conferences were held on January 8, April 8, July 8, and October 8, 2025.

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2) The Company's labor retirement reserve supervisory committee holds quarterly meetings to review contribution status and safeguard employee rights and interests. Meetings were held on January 13, February 3, April 14, July 14, and October 13, 2025.

3) In accordance with relevant laws, the Company has formulated work rules to clearly define the rights and obligations of labor and management. The main provisions include: recruitment, employment, service discipline and communication, working hours and attendance, leave, salary and bonuses, employee benefits, performance appraisal, promotion, rewards and penalties, termination and retirement, occupational hazard compensation, bereavement, safety, health, labor-management meetings.

4) Employee complaint channels have been established, with a hotline and email address to handle issues accordingly and safeguard employee rights and strengthen workplace safety.

h. Workplace diversity and gender equality

1) The Company values diversity. As of the date of publication of the annual report, the percentage of foreign employees is 2% of total employees and 10% of management. Distribution by age group is as follows:

Age	<30 years old	30-50 years old	>50 years old	Total
No.	7	70	45	122
Percentage	6%	57%	37%	100%

2) Equal promotion opportunities are implemented regardless of gender. As of the date of publication of the annual report, the percentage of female employees is 44% while percentage of female management is 20%.

3) The Company has set up a "Remuneration Committee" which distributes corporate operating results to employees based on the remuneration policy. Equal pay for equal work is implemented. For grassroots employees in the same position, compensation packages are the same. For personnel with relevant expertise and work experience, compensation packages are determined based on academic qualifications, expertise, and certifications, without any differentiation due to gender or ethnicity.

i. Local employment where operations are based

The Company is located in Nangang, the easternmost district of Taipei City. In recent years, the Taipei City Government has been promoting the "Eastern Gateway Project" to spur industrial takeoff in Nangang, with the "five centers" concept focusing on software, exhibitions, transportation, startups, and biotechnology, making it an area of high future development potential. The Company also employs local manpower appropriately to enhance community identity and achieve common development. As of the date of publication of the annual report, locally hired employees account for 16% of total employees.

(4) Losses (including compensation and penalties) suffered in recent years and up till the date of publication of the annual report due to labor disputes (including date of penalty, document number, violated regulation, content, and disposition): None.

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Cyber Security Management

(1) Description of information security risk management framework, policies, specific management measures and resources invested in information security management:

a. Information security risk management framework

The Information Technology department is responsible for coordinating formulation, implementation and risk management of information security policies and measures to prevent unauthorized access through networks that compromise information systems and data. The President is the most senior supervisor, with regular compliance audits by the Audit Office. In addition, an Information Security Committee has been established, with the President as the convenor and the top managers of each division (department), totaling 6 members, to manage the resolution of information security-related systems and issues, and each division (department or office) assigns members to form an internal audit team to receive education and training and to assist in the implementation, which is expected to minimize the weaknesses of information security and to improve the ability of risk control.

b. Information security policies

The Company has established information security policies to prevent unauthorized access through networks that compromise the Company's information systems and data, ensuring the security, integrity, confidentiality and availability of information systems and data connected to networks, maintaining smooth computer operations, equipment and data security, integrity, confidentiality and facilitating future management, providing an information environment for the Company's information operations continuity, and complying with relevant laws and regulations to avoid intentional or accidental internal and external threats.

To enhance information security management, the Company implemented the ISO 27001 Information Security Management System certification in 2019 and obtained certification. The latest certificate is valid from October 9, 2025 to October 8, 2028, covering 4 major control themes and 93 control measures. By applying the risk management framework, information confidentiality, integrity and availability are protected.

c. Specific management measures

The Company's information security considerations cover areas including network security education and training, personnel management, network security management, internet access controls, emergency response and disaster recovery, and network security audits. Taking into account cost-effectiveness and convenience for network users, the Company has established information security mechanisms, implemented endpoint antivirus measures on important hosts, and strengthened malicious software behavioral detection. Network firewalls and controls have been enhanced to prevent the spread of computer viruses between hosts and across plants. In addition, information security education and training are conducted annually for all employees. Information security is an annual audit item, and the Company has been a member of TWCERT/CC since 2022 in order to effectively receive and disseminate information security intelligence.

d. Resources invested in information security management

A summary of the Company's implementation of enterprise information security measures in 2025 is as follows:

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1) The Business continuity plan was implemented on November 12 for the Ransomware Response Drill. The drill was completed without any material abnormalities.

2) The ISO 27001 internal audit was conducted on July 3 without any material abnormalities.

3) The information security is an annual audit item. The information and communications security inspections were completed in May and November 2025 without any material abnormalities.

(2) Losses, potential impacts, and responsive measures due to major information security incidents in recent years and up till the date of publication of the annual report. If the impact cannot be reasonably estimated, explain the factual reasons: None.

Material Contracts: None.
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5. Review and Analysis of the Financial Status and Financial Performance, and Risk Management

1. Financial Position

Unit: NT$ thousand

| Year
Item | 2025 | 2024 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | % |
| Current Assets | $1,155,116 | $1,097,336 | $ 57,780 | 5.27 |
| Property, Plant and Equipment | 263,621 | 271,065 | (7,444) | (2.75) |
| Intangible Assets | 4,493 | 4,825 | (332) | (6.88) |
| Other Assets | 23,015 | 17,174 | 5,841 | 34.01 |
| Total Assets | 1,446,245 | 1,390,400 | 55,845 | 4.02 |
| Current Liabilities | 274,462 | 238,877 | 35,585 | 14.90 |
| Non-current Liabilities | 3,999 | 1,757 | 2,242 | 127.60 |
| Total Liabilities | 278,461 | 240,634 | 37,827 | 15.72 |
| Equity Attributable to Owners of the Parent Share Capital | 1,167,784 | 1,149,766 | 18,018 | 1.57 |
| Capital Surplus | 577,058 | 577,838 | (780) | (0.13) |
| Paid-In Capital | 39,460 | 38,969 | 491 | 1.26 |
| Retained Earnings | 579,781 | 549,529 | 30,252 | 5.51 |
| Other Equity | (28,515) | (14,229) | (14,586) | (100.40) |
| Treasury Shares | - | (2,341) | 2,341 | (100) |
| Non-controlling Interests | - | - | - | - |
| Total Equity | 1,167,784 | 1,149,766 | 18,018 | 1.57 |
| Variance Analysis Explanation:
For variations of more than 20% between the current and previous periods, where the amount of change reaches NT$10 million, the analysis of major reasons, their impacts, and future response plans are provided as follows:
Other Equity:
Primarily due to the recognition of unrealized losses on financial assets measured at fair value through other comprehensive income. | | | | |

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2. Financial Performance

(1) Comparative Analysis of Financial Performance

Unit: NT$ thousand

Item	2025	2024	Increase (Decrease) Amount	Variation (%)	Analysis of Variation
Operating Revenue	$1,010,651	$1,018,413	($7,762)	(0.76)
Operating Costs	660,294	698,358	(38,064)	(5.45)
Gross Profit	350,357	320,055	30,302	9.47
Operating Expenses	187,816	180,927	6,889	3.81
Operating Profit	162,541	139,128	23,413	16.83
Non-operating Income and Expenses	17,429	29,186	(11,757)	(40.28)	Note 1
Profit Before Tax	179,970	168,314	11,656	6.93
Income Tax Expense	26,113	31,912	(5,799)	(18.17)
Net Profit for the year	153,857	136,402	17,455	12.80
Other Comprehensive Income (Loss), Net	(10,938)	(25,399)	14,461	56.94	Note 2
Comprehensive Income for the Year	142,919	111,003	31,916	28.75	Note 2
Variance Analysis Explanation:
For variations of more than 20% between the current and previous periods, where the amount of change reaches NT$10 million, the analysis of major reasons as follows:
Note 1:
Primarily due to the increase in unrealized gains on financial assets measured at fair value through profit or loss and the recognition of foreign exchange losses.
Note 2:
Primarily due to the decrease in unrealized losses on financial assets measured at fair value through other comprehensive income compared to the previous period.

(2) Expected sales volume in the coming year and the basis thereof, possible impacts on the Company's future financial and business status, and response plans: Not applicable as the Company has not prepared financial forecasts.

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3. Cash Flows

(1) Analysis of Liquidity for the Past Two Years

Item	2025	2024	Variation (%)
Cash Flow Ratio	91.65%	136.48%	(32.85)
Cash Flow Adequacy Ratio	82.26%	62.66%	31.28
Cash Reinvestment Ratio	9.86%	12.76%	(22.73)
Analysis of Variations in Ratios: (For variations exceeding 20%):
1. Significant inventory destocking in 2024 led to a reduction in purchase amounts, resulting in higher net cash inflows from operating activities compared to 2025. Consequently, the cash flow ratio and cash reinvestment ratio decreased in 2025.
2. The cash flow adequacy ratio increased due to a significant reduction in inventory levels over the most recent two years.

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

Unit: NT$ thousand

Cash at Beginning of Period Balance ①	Expected Net Cash from Operating Activities for the Coming Year ②	Expected Total Cash Outflows for the Coming Year ③	Expected Cash Surplus (Deficit) ① + ② - ③	Expected Plans to Remedy Cash Deficit
				Expenditure Plans	Management Plans
$357,349	$147,743	($126,122)	$378,970	-	-
Analysis of Variations in cash Flow in the Coming Year:
1. Operating Activities: Net cash inflows are expected.
2. Investing and Financing Activities: Net cash outflows are expected due to the planned acquisition of R&D equipment and other assets, as well as the distribution of cash dividends.

Impact of Major Capital Expenditures on Financial and Business Status in the Most Recent Year: None.
Investment Policy in the Most Recent Fiscal Year, Main Reasons for Profits or Losses, Improvement Plan, and Investment Plan for the Coming Year

(1) Investment policy in the most recent fiscal year

The policies for investment in subsidiaries follow the internal control procedures for "Investment Cycle", "Procedures for Acquisition or Disposal of Assets", "Procedures for Transactions with Specified Companies and Related Parties Among Group Enterprises", "Regulations on Financial Operations Between Affiliated Enterprises", and "Regulations Governing Control over Subsidiaries".

(2) Main Reasons for Profits or Losses of Investments and Improvement Plans

Unit: NT$ thousand

Investee	Investment Amount in 2025	Policy	Return on Investment 2025	Main Reasons for Profit/ Loss	Improvement Plans
Grand Impact Technology Limited	58,581	Investment holding for control	(2)	Recognition of investment from Ruby Tech's profit/ loss.	-
Ruby Tech (Beijing) Co., Ltd.	53,471	International trading business	(2)	Primarily due to the purchase of office supplies.

(3) Investment plans for the coming year

The Company will continue to focus on its core business operations and currently has no investment plans for the coming year.

Risk Analysis and Assessment

(1) Impacts of interest rate and exchange rate changes and inflation on the Company's profit and response measures

a. The Company has no bank borrowings; therefore, interest rate fluctuations do not have a significant impact on the Company.
b. Exchange Rate Fluctuations

1) Impact of exchange rate fluctuations on the Company's revenue and profitability

Unit: NT$ thousand

	2025	2024
Net Exchange Gain (Loss)	(7,084)	23,008
Net Revenue	1,010,651	1,018,413
Operating Profit	162,541	139,128
Profit Before Tax	179,970	168,314
Net Exchange Gain (Loss) / Net Revenue (%)	(0.70%)	2.26%
Net Exchange Gain (Loss) / Operating Profit (%)	(4.36%)	16.54%
Net Exchange Gain (Loss) / Profit Before Tax (%)	(3.94%)	13.67%

Approximately 80% to 90% of the Company's sales are denominated in USD, while USD-denominated purchases account for approximately 40% to 60%. Therefore, currency fluctuations significantly influence the Company's profit margins.

The net foreign exchange gains (losses) for the fiscal years 2024 and 2025 amounted to NT$23,008 thousand and (NT$7,084) thousand, respectively. Additionally, the net foreign exchange gains (losses) accounted for 2.26% and (0.70%) of the annual operating revenue for those years, respectively. Furthermore, the net foreign exchange gains (losses) represented 16.54% and (4.36%) of the operating profit for 2024 and 2025, respectively.

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2) Response measures

The Company has implemented the following measures to mitigate the impact of exchange rate fluctuations on profitability:

a) In addition to natural hedging effects arising from foreign currency-denominated purchases and sales, the Finance Department monitors relevant market information and future exchange rate trends to execute timely currency exchanges, thereby reducing foreign exchange risk exposure.

b) The Company maintains close communication with major banks to continuously monitor foreign exchange market changes. This enables relevant management personnel to make timely adjustments in response to exchange rate fluctuations and provides a basis for the sales team’s product pricing.

c) Depending on the level of foreign currency exposure, the Company conducts foreign exchange hedging operations when necessary, following the “Procedures for Acquisition and Disposal of Assets”.

c. Domestic price inflation may lead to an increase in the Company’s procurement costs, which could have an adverse impact on the Company’s profitability.

The Company has more than one supplier and will closely monitor inflation developments. It will negotiate with different suppliers individually to mitigate the impact of inflation on the Company.

(2) Policy, Profit or Loss Analysis, and Future Response Measures Regarding High-Risk and Highly Leveraged Investments, Loans to Others, Endorsements/Guarantees, and Derivatives Transactions

The Company is committed to the development of its core business and does not engage in high-risk or highly leveraged investments, loans to others, endorsements/ guarantees, or derivatives transactions.

(3) Future R&D Plans and Estimated R&D Expenditures

In response to increasing market demand for higher bandwidth, expanded applications, and energy-saving and carbon reduction requirements, the Company will continue to enhance hardware and software functionalities. This includes upward development into project-based managed switches and downward development into cost-effective Web Smart switches, thereby constructing a more comprehensive product line. For details of the planned new product developments, please refer to page 135 of this annual report.

Additionally, the Company aims to increase the value-added content of its software by developing cloud-based application services to support customer sales and technical needs, thereby enhancing overall product competitiveness. The estimated R&D expenditure for 2026 is approximately NT$89,399 thousand.

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(4) Impact of Major Domestic and International Policy and Regulatory Changes on the Company's Financial and Business Operations, and Corresponding Measures

The Company closely monitors major domestic and international policy and regulatory changes and evaluates their potential impact on the Company. Professional advice is also sought when necessary to implement timely and appropriate response measures.

During the most recent fiscal year and up to the publication date of this annual report, no significant impact on the Company's financial or business operations has resulted from any major domestic or international policy or legal changes.

(5) Impact of Technological Changes (Including Cybersecurity Risks) and Industry Shifts on the Company's Financial and Business Operations, and Countermeasures

With advancements in semiconductor and communication technologies, network communication products have evolved from pure hardware, high-maturity turnkey products into niche products that integrate both hardware and software. Given that the Company's production base is located in Taiwan, it is no longer suitable to focus on low-margin, high-volume turnkey products. Instead, the Company concentrates on niche products with higher technical complexity.

As internet usage grows rapidly, the demand for broadband fiber and wireless network applications has intensified. The Company's product focus includes fiber network equipment, managed switches, outdoor wireless network devices, and industrial-grade wired network equipment. These products are embedded networking solutions that combine hardware and software and are designed for deployment in harsh environments. Due to the high technological barriers and relatively limited market competition, the Company anticipates steady growth in both revenue and gross margin. The higher level of product complexity and profitability also aligns with more sophisticated customer requirements, thereby positively impacting the Company's financial performance.

The Company has implemented comprehensive cybersecurity and IT protection measures. However, it cannot fully guarantee that critical computer systems supporting its manufacturing, operations, and accounting functions will remain entirely immune to network attacks or disruptions from third parties. The Company continues to review and assess its information security policies and procedures to ensure their adequacy and effectiveness, yet acknowledges that the constantly evolving nature of cybersecurity threats may still pose risks.

To mitigate these risks, the Company has implemented and continues to upgrade measures such as deploying endpoint antivirus solutions on key servers, enhancing malware detection capabilities, strengthening firewall and network controls to prevent the spread of computer viruses across devices and factory locations. Although efforts to reinforce information security are ongoing, the Company cannot guarantee complete immunity from malicious software or hacker attacks.

For further details on cybersecurity management and countermeasures, please refer to pages 156 and 165 of this Annual Report.

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

The Company has consistently adhered to the principles of prudence, integrity, and a strong focus on its core business operations, placing great importance on maintaining a positive corporate image. To date, there have been no incidents that have damaged the Company’s corporate image or adversely affected its operations.

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

As of the date of this annual report, the Company has no plans to engage in any mergers or acquisitions.

(8) Expected Benefits, Potential Risks, and Countermeasures of Plant Expansion

As of the date of this annual report, the Company has no plans for plant expansion.

(9) Risks Arising from Procurement or Sales Concentration and Countermeasures

In 2024, the Company's top supplier, Supplier A, accounted for 23.65% of total purchases, while all other suppliers accounted for less than 10% each. In 2025, purchases from Supplier A increased to 19.34%, with other suppliers still accounting for less than 10% individually. The Company will continue to actively develop new procurement sources to reduce the risks associated with supplier concentration.

In terms of sales, the top three customers in 2024, Customers a, b, and d, accounted for 21.22%, 18.92%, and 11.74% of total sales, respectively, with all other customers contributing less than 10% each. The top three customers in 2025, Customers a, b, and c, accounted for 35.34%, 14.83%, and 13.94%, respectively, with all other customers contributing less than 10% each. While the risk of sales concentration has declined, the Company will continue to actively expand market scale and develop new customers.

(10) Impact, Risks, and Countermeasures Related to Significant Share Transfers or Changes in Directors, Supervisors, or Major Shareholders Holding Over 10%

As of the printing date of this annual report, the Company’s directors and major shareholders holding more than 10% of shares have not undergone any significant share transfers.

(11) Impact, Risks, and Countermeasures Related to Changes in Management Control

As of the printing date of this annual report, there has been no change in the Company's management control; therefore, this item is not applicable.

(12) Litigation or Non-litigation Matters

a. Major litigation, non-litigation or administrative disputes involving the Company and already concluded with final judgement, or still pending, that may have significant impacts on shareholders' equity or securities prices as of the date of annual report printing: None.

b. Major litigation, non-litigation or administrative disputes involving the Company's directors, supervisors, general managers, responsible persons, and shareholders holding over 10% shareholding and already concluded with final judgement, or still pending, as of the date of annual report printing: None.

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(13) Other Significant Risks and Countermeasures

Information Security Protection and Response:

Technology changes have brought higher efficiency and productivity to the Company, but also introduced new information security risks arising from phishing scams, outdated software versions, inadequate protection or improper configurations of storage space, employees' lack of security awareness or skills, etc. The Company's Administration Department has an Information Department with 3 IT personnel responsible for development and maintenance of corporate network and computerized application software, maintenance of computer equipment and technical support. Regulations including the "Computer Information Usage Regulations", "Regulations on Purchase, Usage and Maintenance of Computer Equipment", "Computer Software Management Regulations", "Annual Data System Migration Procedures for MIS", "Information Security Regulations", "Software Management Regulations", "Email Management Regulations", "Regulations on Borrowing of Software Documentation", "Disaster Recovery Management Guidelines" and "Computer Equipment Retirement Management Regulations" have been formulated for compliance and management.

Other Important Matters

Basis and foundation for evaluation methods of assessing assets and liabilities

(1) Allowance for losses

a. The average credit period on sales of goods and finished products is 30-60 days. The Company's policy is to assess customers' credit rating based on available financial information and historical transaction records.

To mitigate credit risks, the management has delegated a specific department responsible for determining credit limits, approving credit, and performing other monitoring procedures to ensure timely actions are taken to collect receivables past due. In addition, the Company reviews the collectability of accounts receivable on the balance sheet date to ensure appropriate allowance for uncollectible amounts. When necessary, factoring contracts or accounts receivable insurance are also executed to reduce the risk of financial losses due to default. Therefore, the management believes that the Company's credit risks have been significantly reduced.

The Company adopts the simplified approach of IFRS 9 to recognize lifetime expected credit losses on accounts receivable. Lifetime expected credit losses are assessed using a provision matrix, which considers customers' historical default records and current financial conditions, industry outlook and economic conditions, as well as GDP forecasts and industry prospects.

Where evidence indicates that a counterparty is facing significant financial difficulty and the Company has no reasonable expectation of recovering the amount—such as when the counterparty is undergoing liquidation or payments are more than 180 days past due—the Company recognizes a 100% loss allowance. Nevertheless, recovery efforts remain ongoing, and any amounts subsequently recovered through such efforts are recognized in profit or loss.

b. Basis for provision: Provision is made based on percentages of past-due receivables, assessed quarterly. Past-due amounts are based on the number of days past receivable due date.

165 -

c. Expected credit loss rates:

Number of Days	1- 30 days	31- 60 days	61- 90 days	91- 180 days	Over 181 days
Provision Percentage	0.11%	1.07%	2.96%	18.36%	100%

(2) Allowance for inventory valuation losses

a. The Company uses the perpetual inventory system and calculates inventory costs using the weighted average method. Inventory is evaluated at the lower of cost and net realizable value at the end of each period by comparing costs against net realizable value item by item. Allowance for inventory valuation losses is provided based on the results.

b. Based on inventory quality, idle inventory conditions are assessed through aging analysis. That is, full allowance for inventory valuation losses is provided on inventories over 1 year old in view of the Company's customer composition. Allowance is not provided on inventories less than 1 year old which are still usable given the longer lead time required for custom parts procurement.

(3) Financial assets

a. The Company's financial asset portfolio comprises financial assets at fair value through profit or loss, financial assets at amortized cost, and equity instruments at fair value through other comprehensive income.

b. Financial assets at fair value through profit or loss are measured at fair value. Dividends and interest income are recognized in other income and interest income, respectively. Gains or losses from subsequent remeasurement are recognized in other gains and losses.

c. The Company classifies investment in financial assets that meet the following criteria as at amortized cost:

1) Held within a business model whose objective is to hold the financial assets to collect contractual cash flows.

2) The contractual terms give rise to cash flows on specified dates, representing solely payments of principal and interest on the principal amount outstanding.

d. After initial recognition, the amortized cost of financial assets (including cash and cash equivalents, financial assets at amortized cost - current, notes receivable, accounts receivable and other receivables) is determined using the effective interest method, less any impairment losses. Any foreign exchange gains or losses are recognized in profit or loss. Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets, except for:

1) Purchased or originated credit-impaired financial assets, the effective interest rate adjusted for credit is applied to the amortized cost.

2) Non-purchased or originated credit-impaired financial assets that subsequently became credit-impaired, interest income is calculated by applying the effective interest rate to the amortized cost in subsequent reporting periods after becoming credit-impaired.

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e. Cash equivalents include time deposits and repurchase agreements with maturities within 3 months from the date of acquisition, high liquidity, readily convertible to known amounts of cash and with insignificant risk of changes in value, held to meet short-term cash commitments.

f. For non-trading equity instrument investments that are not investments in subsidiaries, associates or joint ventures, the Company may make an irrevocable election at initial recognition to present subsequent changes of fair value in other comprehensive income.

g. Equity instrument investments at fair value through other comprehensive income are measured at fair value. Changes in fair value are recognized in other comprehensive income and accumulated in other equities. Upon disposal, the cumulative gains or losses are transferred directly to retained earnings rather than reclassified to profit or loss.

h. Dividends on equity instrument investments at fair value through other comprehensive income are recognized in profit or loss when the Company's right to receive payment is established unless they clearly represent the recovery of part of investment costs.

(4) Impairment of financial assets

a. The Company assesses impairment of financial assets at amortized cost (including accounts receivable) based on expected credit losses on each balance sheet date.

b. Lifetime expected credit losses are recognized for all accounts receivable. For other financial assets, expected credit losses are measured based on 12-month expected credit losses if credit risks have not increased significantly after initial recognition. If credit risks have increased significantly, lifetime expected credit losses are recognized.

c. Expected credit losses represent weighted average credit losses weighted by the risk of default. 12-month expected credit losses represent expected credit losses resulting from default events possible within 12 months after the reporting date, while lifetime expected credit losses represented credit losses resulting from all possible default events over the expected lifetime of the financial instrument.

d. For internal credit risk management, the Company determines the following situations represent default of financial assets without considering collateral held:

1) Internal or external information indicates the debtor is unlikely to settle credit obligations.

2) Overdue for more than 180 days, unless reasonable and corroborated information indicates that a more lagging default criterion is more appropriate.

e. All impairment losses on financial assets are recognized by reducing the carrying amount through an allowance account, except for impairment losses recognized in other comprehensive income on investments in equity instruments measured at fair value through other comprehensive income, which does not reduce the carrying amount.

(5) Investments accounted for using equity method

a. Investments in subsidiaries are accounted for using the equity method. Subsidiaries refer to entities controlled by the Company.

b. Under the equity method, the investment is initially recognized at cost. The carrying amount is subsequently increased or decreased to recognize the Company's share of profit or loss and other comprehensive income of the subsidiary after acquisition. The Company also recognizes changes in the Company's share of equity of the subsidiary.

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c. When the Company's share of losses exceeds its interests in the subsidiary (including interests accounted for using equity methods and other long-term interests that form part of the Company's net investment), the Company continues recognizing losses in proportion to shareholding.

d. Impairment testing uses cash generating units as the smallest unit. The recoverable amount is compared against the carrying amount. If recoverable amount is less than carrying amount, the carrying amount is reduced to a recoverable amount and impairment loss is recognized in profit or loss. The impairment loss is reversed and recognized as gain when there is an increase in recoverable amount afterwards. However, the carrying amount after reversal shall not exceed the amount (net of depreciation or amortization) that would have been determined had no impairment loss been recognized. Impairment losses on goodwill cannot be reversed in subsequent periods.

e. Impairment losses on goodwill cannot be reversed in subsequent periods. Profits and losses from downstream and side stream transactions between the Company and subsidiaries are recognized in the Company's financial statements only to the extent of interests in the subsidiaries that are not related to the Company.

(6) Impairment of property, plant, and equipment, right-of-use assets, and intangible assets

a. The Company evaluates any indication of impairment of property, plant and equipment, right-of-use assets and intangible assets on each balance sheet date. If any such indication exists, the Company estimates the recoverable amount. If it is not possible to estimate the recoverable amount individually, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

b. For intangible assets with indefinite useful life, impairment testing is performed at least annually and whenever there is an indication of impairment.

c. Recoverable amount is the higher of fair value less costs of disposal and value in use. When the recoverable amount is less than the carrying amount, the carrying amount is reduced to recoverable amount and impairment loss is recognized in profit or loss.

d. If there is a reversal of impairment loss subsequently, the carrying amount is increased to revised recoverable amount. However, the increased carrying amount shall not exceed the amount that would have been determined had no impairment loss been recognized for the asset or cash generating unit in prior years (less depreciation or amortization). Reversal of impairment loss is recognized in profit or loss.

168 -

Special Items
Profiles of Affiliated Enterprises

(1) Consolidated Business Report of Affiliated Enterprises

The filing was completed on March 24, 2026, through the Market Observation Post System. For detailed information, please refer to the Market Observation Post System → Individual Company → Electronic File Download → Affiliated Enterprises Three Report Forms Section. For the website, please visit: https://mopsov.twse.com.tw/mops/web/t57sb01_q10.

(2) Consolidated Financial Statements of Affiliated Enterprises:

For the fiscal year from January 1 to December 31, 2025, the companies required to be included in the preparation of the consolidated financial statements of affiliated enterprises in accordance with the “Regulations Governing Preparation of Affiliated Enterprises Consolidated Business Report, Affiliated Enterprises Consolidated Financial Statements and Related Reports” are the same as those required to be included in the preparation of the parent-subsidiary consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and Statement of Financial Accounting Standards No. 7 “Consolidated Financial Statements”, and the related information required to be disclosed in the consolidated financial statements of affiliated enterprises has already been disclosed in the aforementioned parent-subsidiary consolidated financial statements. Therefore, consolidated financial statements of affiliated enterprises were not prepared separately.

(3) Affiliation report: N/A.

Private Placement of Securities in the Most Recent Fiscal Year and as of the Printing Date of the Annual Report: None.
Other matters that require additional description: None.
169 -

Matters, if any, that may affect Shareholders' Equity or Securities Price as defined in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act in the Most Recent Year and as of the Printing Date of the Annual Report: None.
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RUBY TECH CORPORATION

Chairman: Lin, Kuan-Ming

AI assistant

Ruby Tech Corporation — Annual Report 2025

72751_rns_2026-06-09_4a276359-7b23-40c6-bd23-d40e7c3a733f.pdf

RUBY TECH

2025 Annual Report

Table of Contents

Table of Contents

1. Letter to Shareholders

1. Business Report for 2025

(1) Business Plan Implementation and Results

Sales

Research and Development

Manufacturing:

2. Outline of 2026 Business Plan

(1) Business Strategy

a. Marketing Strategy

b. R&D Strategy

1) Switches

2) Fiber Optic Network Products

3) Industrial Network Products

2. Corporate Governance Report

2. Remuneration to Directors, Supervisors, President, and Vice Presidents in Recent Years

(1) Remuneration to Directors and Independent Directors

3. Implementation of Corporate Governance

(1) Implementation of Board of Directors

Climate-related Financial Disclosures (TCFD)

4. Information on Professional Fees of CPA

5. Issuance of Employee Stock Options and New Restricted Employee Shares:

(1) Status of Employee Stock Options

4. Business Overview

1. Business Content

(1) Scope of Business

(2) Industry Overview

2. Market, Production and Sales Overview

(1) Market analysis

b. Market share

c. Future market supply and demand, and growth potential

1) Network Interface Cards

2) Network Switches

5. Review and Analysis of the Financial Status and Financial Performance, and Risk Management

1. Financial Position

2. Financial Performance

(1) Comparative Analysis of Financial Performance

(2) Expected sales volume in the coming year and the basis thereof, possible impacts on the Company's future financial and business status, and response plans: Not applicable as the Company has not prepared financial forecasts.

3. Cash Flows

RUBY TECH CORPORATION

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Ruby Tech Corporation Annual Report 2025