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Scientech Annual Report 2024

May 27, 2025

52347_rns_2025-05-27_36e95565-524e-4419-ab09-c4c78f1ad1c0.pdf

Annual Report

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Stock Code: 3583

==> picture [100 x 55] intentionally omitted <==

SCIENTECH CORPORATION

2024 Annual Report

Website to access the annual report: mops.twse.com.tw The Company’s website: www.scientech.com.tw

Published on Apr. 24, 2025

I. The name, title, contact number, and email address of the Company's spokesperson and acting spokesperson:

Spokesperson Actingspokesperson Actingspokesperson
Name Hung-Yu Chen Shu-Chen Shen Wei-Lin Hsieh
Tel: (02)87512323 (03)598-6199 (02)8751-2323
Title Special Assistant to the
Chairman's Office		 Special Assistant to the
Chairman's Office		 Manager of Finance
Department
E-Mail [email protected] investor @scientech.com.tw investor @scientech.com.tw

  • II. Address and phone number of headquarters, branch offices and plants

  • Headquarters address:

11th Floor, No. 208, Ruiguang Road, Neihu District, Taipei City 11491

Tel: (02)8751-2323

  • Hsinchu Office address:

No. 182, Bade Road, Hsinchu City, 30069

Tel: (03)516-5177

  • Hukou Factory address:

1F, No. 16, Zhonghua Road, Hsinchu Industrial Park, Hukou Township, Hsinchu County, 30352

Tel: (03)598-6199

  • Tainan Office address:

No. 365, Fuxing Rd., Xinshi District, Tainan City, 74444

Tel: (06)599-5149

  • Kaohsiung Office address:

9F-1, No. 290, Ersheng 1st Road, Qianzhen District, Kaohsiung City, 80654 Tel: (07)713-2000

III. Shareholder services

Name: Agency Department, CTBC Bank

Address: 5F, No. 83, Section 1, Chongqing South Road, Zhongzheng District, Taipei City 10008

Website: https://www.ctbcbank.com Tel: (02)6636-5566

IV. Names of the certified public accountant who duly audited the annual financial report for the most recent fiscal year, and the name, address, and telephone number of said person’s accounting firm:

Name of CPAs: Hui-Min Huang; Yu-Cheng Hsin

Name of accounting firm: Deloitte & Touche

Address: 20th Floor, No. 100, Songren Road, Xinyi District, Taipei City 11073 Website: http：//www.deloitte.com.tw

Tel: (02)2725-9988

  • V. Name of any exchanges where the Company’s securities are traded offshore, and the method by which to access information on said offshore securities: N/A.

  • VI. The Company’s website: http://www.scientech.com.tw

Table of Contents

Table of Contents Table of Contents
Description Page
One. Letter to Shareholders 1
Two. Corporate Governance Report 6
I. Background information on directors, supervisors, presidents, vice presidents, 6
associate vice presidents, and heads of various departments and branches
II. Remuneration paid during the most recent fiscal year to directors, the president, 20
and vice presidents
III. Corporate governance implementation 27
IV. Audit fee of independent auditors 79
V. Information on replacement of CPAs 79
VI . Circumstances in which the Chairman, president, or officers in charge of financial 81
or accounting matters of the Company has worked in the firm of the CPA or its
affiliated companies within the last year
VII. Any equity transfer or change in equity pledged by a director, managerial officer, 81
or shareholder with a 10% stake or more during the most recent year or during the
current year up to the date of publication of the annual report
VIII. Information on top ten shareholders who have mutual relationship as related parties 82
as specified in International Accounting Standard 24.
IX. The total number of shares and the consolidated equity stake percentage held in any 83
single investee enterprise by the Company, its directors, managerial officers, or any
companies controlled either directly or indirectly by the Company
Three. Fund Raising Status 85
I. Capital and shares 85
II. Corporate bonds 89
III. Preferred shares 93
IV. Global deposit receipts 93
V. Employee stock options 93
VI. New Restricted Employee Shares 94
VII. Merger and acquisition activities (including mergers, acquisitions, and 94
demergers)
VIII. Status of implementation of capital allocation plans 94
Four. Operational Highlights 95
I. Scope of business 95
II. An analysis of the market as well as the production and marketing situation 109
III. Employees 118
IV. Environmental protection expenditure 119
V. Labor relations 119
VI. Cyber-security management 126
VII. Important contracts 127
Five. Review and Analysis of the Financial Position and Results of Operations 128
and Risk Management
I. Financial position 128
II. Financial performance 129
III. Cash flow 130
IV. Effect of major capital expenditures on finance and business matters in the most 130
recent year
V. Investment policy for the most recent year, the main reasons for profit or loss, 130
improvement plan, and investment plan for the coming year
VI. Risk management, analysis, and assessment 132
VII. Other important matters 137
Six. Special Items 138
I. Information on affiliates 138
II. Private placement of marketable securities in the most recent year and the current
year up till the publication date of this annual report
III. Other matters that require additional explanation
Seven. Matters with significant impact
I. If any of the situations listed in Subparagraph 2, Paragraph 3, Article 36 of the
Securities and Exchange Act, which might materially affect shareholders' equity
or the price of the company's securities, have occurred during the most recent
fiscal year or during the current fiscal year up to the date of publication of the
annual report.

3

One. Letter to Shareholders

Dear Scientech Shareholders:

2024 operating results:

In 2024, the Company has seen a consolidated operating revenue of NT$9,688,280 thousand, an increase of NT$2,776,299 thousand from last year; operating profit of NT$1,115,549 thousand , an increase of NT$397,827 thousand from last year; an income before tax of NT$1,276,704 thousand, an increase of NT$416,360 thousand from last year; a net income of NT$926,983 thousand (net of the income tax of NT$349,721 thousand), an increase of NT$ 276,681 thousand from last year; and an EPS of NT$11.54 dollars.

Amount
Item 2023 2024 increased or Growth rate
decreased
Operatingrevenue 6,911,981 9,688,280 2,776,299 40%
Operating grossprofit 2,201,332 2,905,827 704,495 32%
Operating profit 717,722 1,115,549 397,827 55%
Netprofit before tax 860,344 1,276,704 416,360 48%
Netprofit after tax 650,302 926,983 276,681 43%
Earnings per share (NT$)
(after taxes)		 8.10 11.54 3.44 42%

II. Outline of the 2025 Business Plan:

  • (I) Business policy and important production and marketing policies

  • Having mastered the key R&D technologies requisite for independently making semiconductor wet process equipment (both single-wafer processing and batch-wafer processing), the Company has demonstrated considerable competitive advantages at both the front-end and the backend of Semiconductor Advanced Packaging process. After all the years of R&D, all models of the Temporary Bonding/Debonding System (TBDB) series have all been successfully developed and put to business use; such models have become an important revenue source for the Company. Going forward this year, we will continue to enhance our R&D strength and production capacity and develop new applications, so as to meet customer needs and thus create long-term favorable development conditions for our Equipment Manufacturing business.

4

  1. In terms of wafer reclaim, to satisfy the customers’ needs for the advanced semiconductor process, the Company has been actively engaged in developing new process and improving existing process. On the 300mm wafer reclaim front, the Company will move forward to attain more advanced process capability to meet customers’ needs this year.

  2. Upholding the R&D spirit as always, the Company actively develops semiconductor/FPD/LED machinery and more advanced wafer processing technologies while competing for new products for our agent business; in 2025, the Company will diversify operating risks and generate revenues and profits from more diversified sources.

(II) Expected sales and its bases

Revenue is expected to grow in 2025, judging from current market conditions, prospects of development for the semiconductor/compound semiconductor/FPD/OLED industries, and the scaled-up operations with respect to Equipment Manufacturing.

III. Future development strategies

To catch up with industrial development, the Company will strive to boost the agent business in different fields while grasping the development of technologies requisite for equipment manufacturing, and improving wafer reclaim process technology and production capacity.

  • IV. Impact of external competition, regulatory environment, and macroeconomic environment

The semiconductor industry scales up due to demands from the various industries such as human-machine interface, digital media, artificial intelligence, and the Internet of Things. With clients successively launching their 10/7/5/3 nm advanced process, capital expenditure on semiconductor equipment will be driven up, which is a favorable factor for the Company’s development.

Once again, we would like to say thank you to all shareholders, directors, clients, and suppliers for their offering long-term support and encouragement to the Company. In a new year going forward, we will uphold the idea of sustainable operations and keep improving ourselves so that we meet your expectations for Scientech.

We wish you all good health and good luck!

Chairman of the Board:

HUNG-LIANG HSIEH

Manager: Accounting Manager: MING-CHI HSU SHAO-CHE CHUANG

5

Two. Corporate Governance Report

  • I. Background information on directors, supervisors, president, vice presidents, directors of departments, managers of departments and branches

(I) Directors and Supervisors

  1. Directors and Supervisors
April 16, 2024 April 16, 2024 April 16, 2024 April 16, 2024 April 16, 2024
Shares held
Nationality or
Gender
Date first
 Date elected
Shareholding
 Current
 Shareholding of
spouse and		 in the name
Main career (academic)		 Concurrent duties in the Company Spouse or relatives of the
second degree or closer acting		 Remarks
Title Place of
Registration		 Name and
age		 elected
(appointed)		 Tenure
(appointed)
when elected		 shareholding
underage children		 of other
rn
achievements
or other companies
as manager or director		 (Note)
pesos
Shares % Shares % Shares % Shares % Title Name Relationship



Chairman of the Company
Director, Natgen Inc.
B.S., Dept. of Physics,
Hung-Liang Male
Director Welltend Technology
Wei-Lin		 Father-
Chairman ROC
Hsieh
71~75		 1979.10.17 3 2021.07.28 7, 9.79%
7,822,390
9.74%
5,974,007		 7.44% 0 0 National Tsing Hua
 ,
Corp.		 Director

Hsieh		 Daughter None
University
Director, Yoho Beach Resort Co.,

Ltd.
M.S., Dept. of Physics,
National Tsing Hua
University
Institute of Electronics,
ITRI
Industrial Technology Responsible person, Tongfang
Independent
 Jyan-Bang Chen
Male

ROC		 20150609 3 20210728 0 0 0 0 0 0 0 0
Research Institute
Investment Co Ltd		 None None None None
director (Note:2) 66~70 .. ..
Chairman VISERA		 ., .
Director Garsen Scientech Corp.
,
Technologies Company		 ,
Ltd.
Independent director,
Material Analysis
TechnologyInc.
Chairman, King Core Electronics
Inc.
Director,Yi Bao Shoe Material
Corp.
EMBA, National
DirectorZheng Bao Investment
Chengchi University
,
Corp.
MBA, Tulane University,

Director,Sheng Bao Investment
USA
Independent
ROC		 Cheng-Li Yang Male
 20160607 3 20210728 0 0 0 0 0 0 0 0
Chairman King Core		 Corp.
 None None None None
director 66~70 .. .. ,
Electronics Inc		 Director, Zheng Bao Investment
.
Independent director		 Corp.
,
Giga-Byte Technology		 Director, NCCU Academic

Co., Ltd.		 Development Foundation
Representative of a corporate
Director, King Core(B.V.I)
Electronics Co. Ltd.
Chairman,Allied Biotech Corp.

6

Shares held Shares held
Nationality or
Gender
Date first
 Date elected
Shareholding
 Current
 Shareholding of
spouse and		 in the name
Main career (academic)		 Concurrent duties in the Company Spouse or relatives of the
second degree or closer acting		 Remarks
Title Place of
Registration		 Name and
age		 elected
(appointed)		 Tenure
(appointed)
when elected		 shareholding
underage children		 of other
rn
achievements
or other companies
as manager or director		 (Note)
pesos
Shares % Shares % Shares % Shares % Title Name Relationship
Director, Yang Bao Investment
Corp.
Director, Ultimate Beyond Limited
Representative of a corporate
director, Innofund Ii Ltd.
Independent director, Giga-Byte
Technology Co., Ltd.
Representative of a corporate
Director, InnoFund V

Shui-Chuan,
 Male M.S., Dept. of Physics, Director, Pearl S. Buck Foundation
National Tsing Hua

University		 Director, Big-Fish-Huang Culture
Independent
General Manager, VisEra
Technologies Company
and Art Foundation
Director, Yuan T. Lee Foundation

director
ROC		 Shin
66 ~ 70		 2024.06.14 3 2024.06.14 0 0 0 0 0 0 0 Ltd.
Director, TSMC		 Science Education for All None None None None
M.S., Dept. of Applied
President Taiwan Electron
Chemistry, National ,
Microscope Instrument Corp.
Tsing Hua University
Director, Taiflex Scientific Co.,
EMBA, National Taiwan Ltd.
University
Senior Director, TSMC
 Independent director, M31
Technology Corp.
Iddt dit Sili
Independent Chun-Chi, Lin Ml CEO & General
Manager, VisEra		 nepenen recor, con
Optronics Inc.
Director STEK CO LTD
director ROC ae
66 ~ 70		 2024.06.14 3 2024.06.14 0 0 0 0 0 0 0 Technologies Company , ., .
Supervisor Acrocyte Therapeutics		 None None None None
Ltd. ,
Inc.
CEO, XINTEC INC.
Director, Shuimu Angel Investment
Executive Vice President,

Co., Ltd.

Global
Director, Shuimu Venture Capital
Unichip Corp. Co., Ltd.

Group General Manager,		 Director, Jiji Investment Co., Ltd.
Kanto-PPC Group
Chairman, Quantek, Inc.
Ph.D., Applied Materials Chairman, Darwin System
Science and Engineering, Technology Corporation
Stanford University Chairman, Darwin Venture
Chairman, Darwin Management Corporation
System Technology Chairman, Dahan Investment
Independent Male
Corporation		 Corporation

ROC		 Sung-Jen Fang 2018.06.11 3 2021.07.28 0 0 0 0 0 0 0 0 None None None None
director 56~60 Independent director, Chairman, Dalong Holding Corp.
Hycon Technology Chairman, Darzhen Venture
Corporation Corporation
Independent director, Chairman, Darjun Venture
Asolid Technology Co., Corporation
Ltd Chairman, Darhe II Venture
Corporation

7

Shares held Shares held
Nationality or
Gender
Date first
 Date elected
Shareholding
 Current
 Shareholding of
spouse and		 in the name
Main career (academic)		 Concurrent duties in the Company Spouse or relat
second degree or		 ves of the
closer acting		 Remarks
Title Place of
Registration		 Name and
age		 elected
(appointed)		 Tenure
(appointed)
when elected		 shareholding
underage c
hildren		 of other
rn
achievements
or other companies
as m
anager or
director		 (Note)
pesos
Shares % Shares % Shares % Shares % Title Name Relationship
Director, Dajun Asset Management
Co., Ltd.
Director, Jefutai Holdings Corp.
Chairman, Affluent Asset
Management Co., Ltd
Director, Teco Electric &
Machinery Co., Ltd.
Chairman, Darhe Venture
Corporation
Director, Teco Image Systems Co.,
Ltd.
Director, Qiu Zaixing Cultural and
Educational Foundation
Supervisor, Linxin Investment Co.,
Ltd.
Supervisor, Leda Investment Co.,
Ltd..
Director, Macronix International
Co.,Ltd.
The Company’s CEO
President, Natgem Inc.
Director, Scientech Engineering
Corp.(Shanghai)
Director, Scientech Engineering
（Hong Kong) Limited
Director, Scientech Investment
Corp
Director, Simple Investment Corp
Directors ROC Ming-Chi Hsu Male 2004.08.25 3 2021.07.28 251,415 0.31%
251,415		 0.31%
140,952		 0.18% 0 0 M.S., Dept. of Physics, Director, Scientech Engineering None None None None
61~65 Tamkang University
USA Corp
Director, Forward Science Pte Ltd
Director, Forward Science
Corporation
Chairman, Transcend Capital Corp.
Chairman, Mingyuan Investment
Co.,Ltd.
Representative of a corporate
Director,Renorigin Innovation
Institute Co.,Ltd.
Fullway
0		 0 0 0 Not applicable - None None None None
ROC Investment 20 2006.06.28 3 2021.07.28 1,341,262
1.65%
1,030,262
1.28%
Corporation
(Note 2)
ROC Representative
of a legal
person:
Su-Chi Tien
(Note 2)		 Female
56 ~ 60		 2006.06.28 3 2021.07.28 0 0 0 0 0 0 0 0 B.B.A., Dept. of
International Business,
Minghsin University Of
Science And Technology		 Associate vice president, Fu Tai
Construction Co., Ltd.
Chairman, Fullway Investment
Corporation
Chairman, Fujing Investment
Corporation		 None None None None
Directors

8

Shares held Shares held
Nationality or
Gender
Date first
 Date elected
Shareholding
 Current
 Shareholding of
spouse and		 in the name
Main career (academic)		 Concurrent duties in the Company Spouse or relatives of the
second degree or closer acting		 Remarks
Title Place of
Registration		 Name and
age		 elected
(appointed)		 Tenure
(appointed)
when elected		 shareholding
underage children		 of other
rn
achievements
or other companies
as manager or director		 (Note)
pesos
Shares % Shares % Shares % Shares % Title Name Relationship
ROC Chung-Ho
Shaw		 Male
71~75		 2015.06.09 3 2021.07.28 216,000 0.27% 241,000 0.30%
56,000		 0.07% 0 0 MBA, Dept. of Business
Administration, National
Chengchi University		 Director, Systex Corporation
Chairman,Liang Xin Finance
Co.,Ltd.		 None None None None
Directors
ROC Han-Liang Hu Male
56-60		 2012.06.27 3 2021.07.28 0 0 0 0 0 0 0 0 M.A., Dept. of
Accounting and
Management Decision-
making Section, National
Taiwan University
Passed the national senior
exam for CPAs
Independent director,
HMI Hermes
Microvision
Director, United Way of
Taiwan
Supervisor, World Vision
International

Partner CPA, Cordiality Justice
Service CPAS &CO.
Director, Kye Systems Corp.
Director, Godex International Co.,
Ltd.
Supervisor, Orient Pharma Co.,
Ltd.
Director, Algoltek, Inc.
Director, Jianrui Venture Capital
Co., Ltd.
Director, Basecom
Telecommunication Co., Ltd.
Director, Accomp Technologies
Co., Ltd.
Supervisor, Power Tank Energy
Ltd.
Independent director, Promate
Solutions Corporation
Independent director, Episil-
Precision Inc.
Independent director,KKCompany
Technologies Inc.		 None None None None
Directors
ROC Wei-Lin Hsieh Female
41~45		 2020.06.11 3 2021.07.28 1,596,934 1.97% 1,589,573 1.98%
0		 0 0 0 B.A., Dept. of Finance,
Yuan Ze University
M.B.A., University of La
Verne Concentrate in
Finance & Marketing		 Manager of the Finance
Department, Scientech Corporation		 Chairman Hung-
Liang
Hsieh		 Father-
Daughter		 None
Directors

Note 1: In the event that the Company's chairman and president or a position of the same level (top-level manager) are the same person, or a spouse or a first-degree relative thereof, relevant information such as the reasons, rationality, necessity, and future improvement measures must be disclosed: None

Note 2: The term of independent director Jyan-Bang Chen and legal director Fullway Investment Corporation and its legal representative Su-Chi Tien have expired on June. 14, 2024.

Note 3: The members of the last board of directors were elected on June.14, 2024, so the number of female directors currently does not reach 1/3; the Company will carefully consider this issue when the next board of directors is re-elected.

9

2. Major shareholders of corporate shareholders : None

3. Disclosure of professional qualifications of directors and independence of independent directors:

Number of
Criteria concurrent
duties as an
Professional qualifications and
Independence independent
experience (Note)
director at a
Name public
company
Chairman of
the Board:
Hung-Liang
Hsieh		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
Chairman of Scientech
Corporation		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
CompanyAct.		 0
Independent
director :
Cheng-Li
Yang		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
Chairman, King Core Electronics
Inc.;
Independent director, Giga-Byte
Technology Co., Ltd.		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
Company Act.
3. Does not fit any of the
circumstances set out in the
various subparagraphs of
Paragraph 1, Article 3 of the
Regulations Governing
Appointment of Independent
Directors and Compliance
Matters for Public Companies,
and thus qualifies for the
independence criteria.		 1

10

Number of
Criteria concurrent
duties as an
Professional qualifications and
Independence independent
experience (Note)
director at a
Name public
company
Independent
director:
Sung-Jen Fang		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
Chairman, Darwin System
Technology Corporation;
Independent director, Hycon
Technology Corporation;
Independent director, Asolid
Technology Co., Ltd.		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
Company Act.
3. Does not fit any of the
circumstances set out in the
various subparagraphs of
Paragraph 1, Article 3 of the
Regulations Governing
Appointment of Independent
Directors and Compliance
Matters for Public Companies,
and thus qualifies for the
independence criteria.		 0
Independent
director:
Shui-Chuan,
Shin		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
General Manager of Visera
Technologies company Ltd.
Dirctor of TSMC		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
Company Act.
3. Does not fit any of the
circumstances set out in the
various subparagraphs of
Paragraph 1, Article 3 of the
Regulations Governing
Appointment of Independent
Directors and Compliance
Matters for Public Companies,
and thus qualifies for the
independence criteria.		 0

11

Number of
Criteria concurrent
duties as an
Professional qualifications and
Independence independent
experience (Note)
director at a
Name public
company
Independent
director:
Chun-Chi, Lin		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
CEO & General Manager, VisEra
Technologies Company Ltd.
CEO, XINTEC INC.
Executive Vice President, Global
Unichip Corp.
Group General Manager, Kanto-
PPC Group
Director, Capital TEN Inc.
Director, SG Biomedical Co. Ltd.
Director, PentaPro Materials		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
Company Act.
3. Does not fit any of the
circumstances set out in the
various subparagraphs of
Paragraph 1, Article 3 of the
Regulations Governing
Appointment of Independent
Directors and Compliance
Matters for Public Companies,
and thus qualifies for the
independence criteria.		 2
Director:
Ming-Chi Hsu		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
CEO, Scientech Corporation;
Director, Forward Science
Corporation.		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
CompanyAct.		 0
Director:
Chung-Ho
Shaw		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
Director, Systex Corporation;
Director, Ali Corporation.		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
CompanyAct.		 0

12

Number of
Criteria concurrent
duties as an
Professional qualifications and
Independence independent
experience (Note)
director at a
Name public
company
Director:
Han-Liang Hu		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
Partner CPA, Cordiality Justice
Service CPAS & CO.;
Independent director, HMI
Hermes Microvision;
Independent director, Episil-
Precision Inc.; Independent
director, Promate Electronic Co.,
Ltd. ;Independent
director,KKCompany
Technologies Inc.		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
Company Act.		 3
Director:
Wei-Lin Hsieh		 Has no less than 5 years of work
experience in the area of
commerce, law, finance, or
accounting
Career qualification:
Manager of the Finance
Department of Scientech
Corporation		 1. Circumstances specified in the
various subparagraphs of
Article 30 of the Company Act
do not exist.
2. Not elected in the capacity of a
government agency, legal
person, or their representative,
as specified in Article 27 of the
CompanyAct.		 0

Note 1: For the academic qualifications of the various directors, refer to p.6~p.9.

4. Board diversity and independence:

(1) Board diversity: Give a description of the policy and goals regarding board diversity, and the achievement thereof. Diversity policy shall include, but are not limited to, the policy on director selection criteria, professional qualifications required of the Board of Directors, the composition or percentage of experience, gender, age, nationality, and culture that are required of the Board of Directors; a company shall also disclose the concrete goals therefor, and the achievement of such goals.

The membership composition of the Board of Directors is determined by giving consideration to the diversity of Board member in various perspectives in accordance with the “Corporate Governance Best Practice Principles” and the “Procedures for Election of Directors”. The Company has 9 directors, of whom 4 are independent directors and 1 is female directors. Board members are experts in management, science and engineering, or financial analysis; have involved in the management of the technology industry; have the literacy that the Company needs such as industrial knowledge about semiconductors, operational judgment capability, a cosmopolitan market view, leadership, and decision-making capability; and can offer professional advice from different aspects, thus helping improve the Company’s operating performance and management benefits. The Board membership diversity policy attaches importance to the diversification of Board membership and gender equality. The incumbent directors always pay attention to, and are seeking, whether there is any talent with a

13

cosmopolitan market view or experience in crisis management and law. The specific management objectives and achievement status of the Company’s diversity policy are as follows:

Management objectives Management objectives Management objectives Management objectives Management objectives Management objectives Management objectives Management objectives Management objectives Management objectives Achievement Status Achievement Status Achievement Status Achievement Status
More than one-third of the board seats are independent directors 100 % Achievement

More than one-third of the independent directors possess expertise in
finance, the semiconductor industry, or law.		 100 % Achievement
The percentage of female directors is over 20% 11% Reached
Investment
management
v
v


v
v
Basic composition Capability possessed

Nationality		 Gender Age Term and seniority
of independent
director		 Operational
judgment
capability		 Accounting and
financial analysis
capability		 Business
administration
capability		 Crisis
management
capability		 Industry
knowledge		 Cosmopolitan
market view		 Leadership Decision-making
capability		 Investment
management
Items of
diversity

Director
name
Hung-
Liang
Hsieh		 ROC Male 71~75 v v v v v v v
Cheng-Li
Yang
ROC		 Male 66~70 8 years
and 10
months		 v v v v v v v v v
Sung-Jen
Fang		 ROC Male 56~60 6 years
and 10
months		 v v v v v v v v v
Shui-
Chuan,
Shin		 ROC Male 66~70 10
months		 v v v v v v v
Chun-
Chi, Lin		 ROC Male 66~70 10
months		 v v v v v v v
Ming-
Chi Hsu		 ROC Male 61~65 v v v v v v v
Chung-
Ho Shaw		 ROC Male 71~75 v v v v v v v v v
Han-
Liang Hu		 ROC Male 56~60 v v v v v v v v
Wei-Lin
Hsieh		 ROC Female 41~45 v v v v v

(2) Independence of the board:

  • A. Of the Company’s 9 directors, 4 are independent directors, accounting for 44% of total seats. A total of 7 seats of the directors plus independent directors are neither a spouse nor a relative of within the 2nd degree of kinship of one another. In this way, the Company complies with the rules specified in Paragraphs 3 and 4 of Article 26-3 of the Securities and Exchange Act.

  • B. No independent director shall serve for more than 3 terms; the number of public companies in which they concurrently serve as an independent director shall not exceed 3. The one independent directors have a seniority of less than 9 years; The one independent director has a seniority of less than 7 years. The two independent directors have a seniority of less than 1 year.

  • C. Directors are highly self-disciplined. If any director is an interested party with respect to any agenda item, the director shall state the important aspects of the interested party relationship at

14

the respective meeting. When the relationship is likely to prejudice the interests of the company, the director may not participate in discussion or voting on that agenda item, and further, shall enter recusal during discussion and voting on that item and may not act as another director's proxy to exercise voting rights on that matter refer to p.29: Recusal of directors from interest-conflicting proposals).

15

(II) Background information on directors, the President, vice presidents, associate vice presidents, and heads of various departments and branches

March 25,2025 March 25,2025 March 25,2025 March 25,2025
Nati Gd Shares held
 C di i h C
Shareholding of Managers who are
Shareholding
spouse and		 in the name
f th

spouse or blood relatives
Remarks
Nt1
Title on Name ener
 Date elected underage children o oer
ersons		 Main career (academic) achievements oncurrent utes n te ompany
d th i
within the second degree
(oe)
ality age p an oer companes
Relatio
Shares % Shares % Shares % Title Name
nship
CEO ROC 19900716 251415 031% 14052 018% 0 0 The Company’s CEO N N N N

President, Natgem Inc.
Director, Scientech Engineering

Corp.(Shanghai)

Director, Scientech Engineering

（Hong Kong) Limited

Director, Scientech Investment
Corp

Director, Simple Investment Corp
Ming-Chi Male M.S., Dept. of Physics, Tamkang Director, Scientech Engineering
USA C

Hsu		 61~65 .. , . ,9 .
University		 orp
Director Forward Science Pte Ltd		 one one one one
,
Director, Forward Science
Corporation

Chairman, Transcend Capital

Corp.

Chairman, Mingyuan Investment

Co., Ltd.
Representative of a corporate

director,Renorigin Innovation

Institute Co., Ltd.
ROC 2000331 18000 002% 0 0 M.S., Dept. of Physics, National

Chung Cheng University

Manager/ United Microelectronics

Corporation

Manager/ UMC Singapore
President of
h Bi		 Hong-Jey Male
APIAA Certified Industrial Analyst		 Director, Acromass Technologies,
te usness
Group
Lee		 51~55 9.. 102,625 0.13% , . The members of ISES Advisory Board
Inc.		 None None None None
The members of SEMI Taiwan
Advanced Packaging Committee

Director of TEEMA(Taiwan Eletrical
and Eletronic Manufacturers'
Association)
Ml M.S., Dept. of Materials Engineering,

University Of Dayton, USA

Deputy Division Chief/ Nanya

Technology Corporation
President of Kaan Lu Division chief/ Technology
Dtt f Mi Ti Ft
the Business
 ROC Tzou ae
51~55		 2020.09.07 0 0 0 0 0 0 eparmen o cron awan acory
No1; Division chief/ Division of		 None None None None None
Group .
Production and Packaging, Micron

Taiwan
Senior associate vice president of the

Operations Center/ Applied

Optoelectonics, Inc.
Chih-Huei Female B.S.,Dept. of Physics, FU Jen Catholic
Vice president
ROC		 2001.07.01 28,000 0.03% 0 0 0 0 President, Scientech Gmbh None None None None
Chu 56~60
University;

16

EMBA, National Tsing Hua University

Research fellow/ Industrial
Technology Research Institute.

Process engineer/ Texas

Semiconductors
Manger of the Business Department/

Lingdia Enterprise

Manager of the wedding gown section/

TAIPEI LOVE FOREVER BRIDAL
STUDIO

ROC		 20200301 0 0 10 0 0 0 M.S., Dept. of Physics, National Tsing N N N N N

Hua University

Deputy manager of the R&D

Department/ Pristine Optoelectronics
Vice president
f h R&D		 Kou-Hwa
Ch		 Associate engineer/ Optoelectronics
Male
Laboratory, Industrial Technology
o te
Department		 ang
(Note 2)		 61~65 ..
Research Institute		 one one one one one
Manager of the Quality Assurance

Department/ Merck Balzers

Vice president/ Scientech Corporation

Vice president/ Acromass

Technologies, Inc.
M.S., Dept. of Material Science and

Engineering, National Central

University
Vice president
ROC		 Ming- Male 2011.09.01 133,984 0.17% 40,000 0.05% 0 0 Engineer/ Vertex Precision Electronics None None None None None
Hsun Lee 46~50
Inc.

Engineer/ Kinik Precision Grinding

Corporation

Manager/ Kinik Company
Lausanne IMD EMBA candidate
M.S., Dept. of Business &
Management, NCTU
B.S., Dept. of Chemical Engineering,
NTHU
Sales Director/ ASML TW
Vice president
ROC		 Bruce Male 2024.09.02 0 0 0 0 0 0 Director of cost management/ ASML
None		 None None None None
Cheng 56~60 Asia procurement director /EUV global

customer service ASML
MEMS strategic partnership sourcing
manager / Qualcomm
Procurement section manager/ TSMC
Chief process Engineer/ Philips
DisplayComponent Dapon factory
Associate vice
ROC		 Male 20090331 461 006% 0 0 0 0 B.S., Dept. of Electronic Engineering, N N N N N

Ta Hwa University of Science and
Chuan-
Ch		 Technology
Section Chief/ APack Technologies
president ang
Feng		 51~55 .. 7,9 .
Inc.
Engineer/ Vanguard International		 one one one one one

Semiconductor Corporation

Engineer/ Coretronic Corporation
M.S., Dept. of Chemical Engineering,
Associate vice
ROC		 Chien- Male 2005.11.19 0 0 0 0 0 0
National Cheng Kung University		 None None None None None
president Chung Lin 51~55
R&D engineer/ Sinonar Corporation

17

Process integration engineer/ United
Microelectronics Corporation
Deputy manager/ Hejian Technology
(Suzhou)Co.,Ltd.
PhD., Dept. of Science and
Technology Management, National
Chiao Tung University
MS, Dept. of Electrical Engineering,
Associate vice Pei-Han Male National Cheng Kung University

ROC		 2022.6.21 0 0 0 0 0 0 None None None None None
president Chung 46~50 Sales Director/ Picosun Taiwan
Corporation Technical
Industrialization Manager/ Electronics
and Optoelectronic Lab, Industrial
TechnologyResearch Institute

ROC		 2021922 0 0 0 0 0 0 M.S., Dept. of Materials Science and N N N N N
Engineering, National Sun Yat-Sen
Associate vice Tsun-
Hi		 Male University
president sung
Peng		 46~50 .. Process engineer/ TSMC one one one one one
Component engineer/UMC.
Department manager/ Xintec Inc.
B.M., Dept. of Management
Associate vice Chih Male

ROC		 2022.4.1 0 0 0 0 0 0 Information System, University of None None None None None
president Chang Lin 46~50
South Australia -

M.S., Dept. of Forestry, National
Associate vice Chuan-Jen
 Male Chung Hsing University

president
ROC		 Fang
46-50		 2023.02.13
Manager of Diffusion Process		 None None None None None
(Note 2)
Department/ Micron Technolog

MBA, Fontbonne University
Clerk /CitiMortgage
Hsiao-Pei
Associate vice Female Sr.Account Mgr/Martetech

president
ROC		 Kuo
41-45		 2023.04.01
International Cor		 None None None None None
p.
Marketing Sales Engineer /Parrion
TechnologyEquipment Co.,Ltd./
B.S. Dept. of Electrical Engineering,
Associate vice I-Feng, Male Far East University

ROC		 2023.04.01 None None None None None
president
Chang		 46-50 Engineer/ Dong Xiang Tech. Co.

Engineer/ FengTengTechnology
PhD., Institute of Information
Management, National Chiao Tung
Vice presiden ROC Yi-Lin Li Male 2018.04.01 0 0 0 0 0 0 University None None None None None
51~55
Deputy director of the Information

Technology Department/ Gallant

Precision Machining Co., Ltd.
Metropolitan State University
Associate vice Chris Male Equipment Engineer /Motorola TW

ROC		 2023.08.17 0 0 0 0 0 0
None		 None None None None
president Huang 56~60 Equipment Engineer /National Devices

Laboratory

18

Equipment supervisor, business
development manager Varian TW
Business Development Mgr/
Lam Research
Service Mgr./ESEC TW
Service Mgr./Aviza TW
Service Head/ Ultratech TW
Project Mgr./Scientech China/
Customer support Mgr./ Ev Group
Taiwan Ltd.
M.A., Dept. of Management, National

Central University

Project Manager/Grand Process

Technology Corp.
Associate vice
ROC		 Jay Tsai Male 2023.09.04 0 0 0 0 0 0 Senior Manager/Zillion Tek Co., Ltd. None None None None None
president 51~55
Vice president/Cheng Mei Instrument

Technology Co., Ltd.

Chairman's Office Advisor of Medigen

Biotech Corp.

Advisor/Aplus Precision Co., Ltd.

Chung Hua University

Process Engineer /Jin Min Jing Yan
Associate vice Male

president
ROC		 Party Wen
46~50		 2024.04.01 0 0 0 0 0 0 Co., Ltd.
Ei Ei / MC		 None None None None None
qupment ngneer U
Process Engineer / UMC
Associate vice
ROC		 Male 20240624 0 0 0 0 0 0 B.S.,Dept. of Electric N N N N N

Engineering/TaHwa University of
Al Science and Technology

Technical Manager/ Nexchip
Semiconductor Corp.
Si M/ AMAT
president an Kao 51~55 .. te anager
Operation Manager/ Lam/Site
Customer Service		 one one one one one
Spare Engineering Manager/ Novellus

System Inc.

ASM Produce Leader/ ASML
M.S., Dept. Mechanical Engineering,
National Taiwan Institute of
technology,
Chih- Manager/ TSMC PVD dept.
Associate vice
ROC		 Tsang Male 2024.12.02 0 0 0 0 0 0 Manager/ TSMC Wet clean dept. None None None None None
president 51~55 Manager/ TSMC Diffusion dept
Tseng .
Manager/ TSMC BEOL Advanced

Package CoWoS/InFO Laser grooving,
Die saw, ECP plating, Lithography
M.S., Dept. of Physics, Chiao Tung
University
Customer Technologist Manager/
Applied Materials
Associate vice
ROC		 JCY Yeh Male 2024.12.02 0 0 0 0 0 0
Customer Integration Engineering		 None None None None None
president 56~60
Manager/ ASE
Customer Engineering Manager/
Motech
Advanced Process Manager/ UMC

19

Associate vice
president,
Accounting
Division		 B.A., Dept. of Accounting, Tamkang

University
Shao-Che Male
Manager of the Accounting		 Supervisor, Scientech Engineering
ROC 2006.05.22 0 0 0 0 0 0 None None None None
Chuang 56~60
Department/ Golden Orange
Corp.(Shanghai)
Electronics Co., Ltd.
Manager/ Priver Corp.
Head of
Corporate
Governance		 Director, Renorigin Innovation
M.A., Finance, Fu Jen Catholic Institute Co. Ltd.
Shu-Chen Female University President, Zhenjia Investment Co.
ROC ,
Shen
51-55		 2023.04.01 18 0.00%
Associate vice president of		 Ltd. None None None None

Underwriting Department/ Capital		 Supervisor, Natgem Inc.

Securities Corp.
Supervisor,Mingyuan Investment

Co.,Ltd
Manager of
the Audit
Office		 B.A., Dept. of Statistics, Fu Jen
Male
 Catholic University
ROC Chi Wu 2007.04.16 0 0 0 0 0 0
Manager/ Qmi Industrial Co., Ltd		 None None None None None
51-55
Manager/ Pricewaterhousecoopers

Taiwan

Note 1: In the event that the chairman and president or a position of the same level (top-level manager) are the same person, or a spouse or a first-degree relative thereof, relevant information such as the reasons, rationality, necessity, and future improvement measures must be disclosed: None Note 2: Kou-Hwa Chang retired on Feb. 28, 2025 and Chuan-Jen Fang resigned on Mar. 3, 2025 respectively.

II. Remuneration paid during the most recent fiscal year to directors, the president, and vice presidents

  1. Remuneration paid to directors and independent directors 2024
Unit: NT$1,000 Unit: NT$1,000 Unit: NT$1,000
Total Total
Directors’ remuneration Remuneration for concurrent duty as an employee
Remuneration Remuneration
Remunerati
on received
Compensation Disability
tit bfit
Directors’		 Fees for
fil		 (A+B+C+D) as a
% of the Net		 Salary, bonus, and
il		 Disability
tit bfit
El ti (G)		 (A+B+C+D+E+F+
G) as a % of the
(A) reremen enes
(B)
compensation (C)
proessona
practice (D)
Income		 speca
reimbursement (E)
reremen enes
(F)
mpoyee compensaon
Net Income		 from an
investee
Title Name All
 All
 All
 All
 All
 All
 All
 All companies
 All
other than a
companie companie compani e
 companie companie companie companie The Coman within the
 companie subsidiary
The s within The s within The s within
The		 s within
The		 s within The s within The s within py financial The s within ,
or from the
Compan the Compan the Compan the Compan the Compan the Compan the Compan the state ments Compan the
arent
y financial y financial y financial

y		 financial

y		 financial y financial y financial Amou Amou Amou Shares y financial p
coman
statement statement statemen t
 statement statement statement statement nt in nt in nt in Amou statement py
s s s s s s s cash shares cash nt s
Chairman Hung-Liang
Hsieh		 0 0 0 0 9,100 9,100 155 155 9,255
1.00%		 9,255
1.00%		 14,571 15,105 289 289 3,424 0 3,424 0 27,539
2.97%		 28,073
3.03%		 None
Director Ming-Chi
Hsu
Director Representati
ve of
Fullway
Investment
Corporation:
Su-Chi Tien
(Note 3)
Director Chung-Ho
Shaw

20

Total Total Total Total
Directors’ remuneration Remuneration for concurrent duty as an employee
Remuneration Remuneration
Remunerati
on received
Compensation Disability
tit bfit
Directors’		 Fees for
fil		 (A+B+C+D) as a
% of the Net		 Salary, bonus, and
il		 Disability
tit bfit
El ti (G)		 (A+B+C+D+E+F+
G) as a % of the
(A) reremen enes
(B)
compensation (C)		 proessona
practice (D)
Income		 speca
reimbursement (E)
reremen enes
(F)
mpoyee compensaon
Net Income		 from an
inestee
Title Name All
 All
 All
 All
 All
 All
 All
 All companies
 All
 v
other than a
companie companie companie companie companie companie companie The Coman within the
 companie subsidiary
The s within The s within The s within The s within The s within The s within The s within py financial The s within ,
or from the
Compan the Compan the Compan the Compan the Compan the Compan the Compan the statements Compan the
arent
y financial y financial y financial y financial y financial y financial y financial Amou Amou Amou Shares y financial p
coman
statement statement statement statement statement statement statement nt in nt in nt in Amou statement py
s s s s s s s cash shares cash nt s
Director

 Han-Liang
Hu
Director

 Wei-Lin
Hsieh
Independe
nt director


 Jyan-Bang
Chen
(Note 3)		 840 840 0 0 4,900 4,900 155 155 5,895
0.64%		 5,895
0.64%		 0 0 0 0 0 0 0 0 5,895
0.64%		 5,895
0.64%		 None
Independe
nt director

 Cheng-Li
Yang
Independe
nt director

 Sung-Jen
Fang
Independe
nt director


 Shui-Chuan,
Shin
(Note 3)
Independe
nt director

 Chun-Chi,
Lin(Note 3)
1. Please describe the remuneration policy, system, criteria, and structure for independent directors, and the relevance of remuneration to factors such as the duty and risk they assume and the time they invest: The Company’s
independent directors are entitled to the director remuneration plus a fixed amount of monthly salary. Remuneration for directors and independent directors alike is determined based on their contribution during their term of
office and the weight specified in the director remuneration policy passed by the Remuneration Committee.
2. In addition to as disclosed in the above table, the remuneration received by the directors for their services provided (such as serving as a non-employee consultant for the parent company/any of the consolidated companies/
investees) in the most recent fiscal year: None.
3. The term of independent director Jyan-Bang Chen and legal director Fullway Investment Corporation and its legal representative Su-Chi Tien have expired on June. 14, 2024. Shui-Chuan, Shin and Chun-Chi, Lin were
elected as SCIENTECH’s independent directors on June 4, 2024.

Note: The Company resolved to distribute employee remuneration for 2024 in the amount of NT$108,700 thousand and director remuneration for 2024 in the amount of NT$14,000 thousand at the Board of Directors meeting dated February 27, 2025

21

Table of Remuneration Ranges

Name of Director Name of Director Name of Director Name of Director
Remuneration equal to the sum of A,B, C,and D Remuneration equal to the sum of A,B, C,D,E,F,andG
Directors’ remuneration range
All companies within the All companies within the
The Company The Company
financial statements financial statements
Under NT$1,000,000 Jyan-Bang Chen; Shui-Chuan
Shin; Chun-Chi Lin; Fullway
Investment Corporation: Su-
Chi Tien
Jyan-Bang Chen; Shui-Chuan
Shin; Chun-Chi Lin; Fullway
Investment Corporation: Su-
Chi Tien
Jyan-Bang Chen; Shui-Chuan
Shin; Chun-Chi Lin; Fullway
Investment Corporation: Su-
Chi Tien
Jyan-Bang Chen; Shui-Chuan
Shin; Chun-Chi Lin; Fullway
Investment Corporation: Su-
Chi Tien
NT$1,000,000 (inclusive)～
NT$2,000,000 (exclusive)		 Cheng-LiYang;Sung-Jen
Fan; Chung-Ho Shaw; Han-
Liang Hu; Ming-Chi Hsu ;
Wei-Lin Hsieh		 Cheng-Li Yang;Sung-Jen Fan;
Chung-Ho Shaw;
Han-Liang Hu; Ming-Chi Hsu ;
Wei-Lin Hsieh		 Cheng-Li Yang;Sung-Jen Fan;
Chung-Ho Shaw; Han-Liang
Hu;		 Cheng-Li Yang;Sung-Jen Fan;
Chung-Ho Shaw; Han-Liang
Hu;
NT$2,000,000 (inclusive)～
NT$3,500,000(exclusive)		 Hung-Liang Hsieh Hung-Liang Hsieh
NT$3,500,000 (inclusive)～
NT$5,000,000 (exclusive)		 - - Wei-Lin Hsieh Wei-Lin Hsieh
NT$5,000,000 (inclusive)～
NT$10,000,000 (exclusive)		 - - Hung-Liang Hsieh Hung-Liang Hsieh
NT$10,000,000 (inclusive)～
NT$15,000,000 (exclusive)		 - - Ming-Chi Hsu Ming-Chi Hsu
Total 12 12 12 12

Note 1: The Company resolved to distribute employee remuneration for 2024 in the amount of NT$108,700 thousand and director remuneration for 2024 in the amount of NT$14,000 thousand at the Board of Directors meeting dated February 27, 2025.

Note 2: The term of independent director Jyan-Bang Chen and legal director Fullway Investment Corporation and its legal representative Su-Chi Tien have expired on June. 14, 2024. Shui-Chuan, Shin and Chun-Chi, Lin were elected as SCIENTECH’s independent directors on June 4, 2024. .

22

  1. Supervisors’ remuneration: Not applicable because the Company adopts an audit committee system.

  2. Remuneration to the president and vice presidents

2024 Unit:NT$1,000

Disability Disability Bonus and special Bonus and special Total Remuneration Total Remuneration
Remunerat
Employee compensation
Salary (A) retirement benefits reimbursement (A+B+C+D) as a %
ion
(D)
(B) (C) of the Net Income received
All companies from an
All All All ll

A investee
companie companie companie The Company within the
Title Name companie other than
ihi ihi ihi financial ihi
The s wtn The s wtn The s wtn statements The s wtn a
h h h h
Company
te		 Company
te		 Company
te		 C
te		 subsidiary,



ompany
financial financial financial Amount
Amount

Amount		 financial or from the
statement statement statement
Amount
in cash in in statement parent
s s s in cash
shares shares s company
CEO Ming-Chi
Hsu		 16,962
 18,956 848 848 17,911 17,911 17,631 0 17,631 0 53,352
5.76%		 55,346
5.97%		 None
President of
the Business
Group		 Hong-Jey
Lee
President of
the Business
Group		 Kaan Lu
Tzou
Vice
president		 Chih-Huei
Chu
Vice
president		 Kou-Hwa
Chang
(Note 2)
Vice
president		 Ming-
Hsun Lee
Vice
president		 Bruce
Tseng
(Note2)
Vice
president		 Yi-Lin Li
(Note 2)

23

  • Note 1: The Company resolved to distribute employee remuneration for 2024 in the amount of NT$108,700 thousand and director remuneration for 2024 in the amount of NT$14,000 thousand at the Board of Directors meeting dated February 27, 2025.

Note 2: Kou-Hwa Chang retired on June 14, 2024; Bruce Tseng and Yi-Lin Li assumed office on Sep. 2, 2024 and Apr. 1, 2024 respectively.

Table of Remuneration Ranges

Range of remuneration paid to the Company’s Name of President and vice president Name of President and vice president
president and vice presidents The Company All companies within the financial statements
Under NT$1,000,000 Bruce Tseng(Note 2) Bruce Tseng(Note 2)
NT$1,000,000 (inclusive)～NT$2,000,000
(exclusive)		 - -
NT$2,000,000 (inclusive)～NT$3,500,000
(exclusive)		 Kou-Hwa Chang Kou-Hwa Chang
NT$3,500,000 (inclusive)～NT$5,000,000
(exclusive)		 Yi-Lin Li (Note 2) Yi-Lin Li (Note 2)
NT$5,000,000 (inclusive)～NT$10,000,000
(exclusive)		 Chih-Huei Chu; Ming-Hsun Lee Chih-Huei Chu; Ming-Hsun Lee
NT$10,000,000 (inclusive)～NT$15,000,000
(exclusive)		 Hong-Jey Lee ;Kaan Lu Tzou ;Ming-Chi Hsu Hong-Jey Lee ;Kaan Lu Tzou ;Ming-Chi Hsu
Total 8 8

Note 1: The Company resolved to distribute employee remuneration for 2024 in the amount of NT$108,000 thousand and director remuneration for 2023 in the amount of NT$14,000 thousand at the Board of Directors meeting dated February 27, 2025.

Note 2: Bruce Tseng and Yi-Lin Li assumed office on Sep. 2, 2024 and Apr. 1, 2024 respectively.

24

  1. Names of managerial officers who are assigned employee remuneration and the status of assignment
2024 Unit: NT$1,000 Unit: NT$1,000
Amount Total as % of

Amount
Title Name paid in Total the Net
paid in cash
shares Income
Manager CEO Ming-Chi Hsu 29,947 3.23%
President of the
Business Group		 Hong-Jey Lee
President of the
Business Group		 Kaan Lu Tzou
Vicepresident Chih-Huei Chu
Vicepresident Kou-Hwa Chang
Vicepresident Ming-Hsun Lee
Vicepresident Bruce Tseng (Note 2)
Associate vice
president		 Chuan-Chang Feng
Associate vice
president		 Chien-Chung Lin
Associate vice
president		 Pei-Han Chung
Associate vice
president		 Chun-Hsiung Peng
Vicepresident Yi-Lin Lee
Manager Wei-Lin Hsieh
Associate vice
president		 Chih Chang Lin
0 29,947
Associate vice
president		 I-Feng, Chang
Head of
Corporate
Governance		 Shu-Chen, Shen
Associate vice
president		 Hsiao-Pei Kuo
Associate vice
president		 Chuan-Jen Fang
Associate vice
president		 Alan Kao (Note 2)
Associate vice
president		 Chih-Tsang Tseng
(Note 2)
Associate vice
president		 JCY Yeh (Note 2)
Associate vice
president,
Accounting
Division		 Shao-Che Chuang
Manager of the
Audit Office		 Chi Wu

Note 1: The Company resolved to distribute the employee remuneration for 2024 in the amount of NT$108,700 thousand at a Board of Directors meeting on February 27, 2025; such amount was calculated based on the ratio of the actually distributed amount for 2023 to the employee remuneration for 2023.

25

  • Note 2: Bruce Tseng, Alan Kao, Chih-Tsang Tseng and JCY Yeh assumed office on Sep. 2, 2024 and June 24, 2024, Dec. 2, 2024, Dec. 2, 2024 respectively.

  • (IV) Separately compare and describe total remuneration, as a percentage of net income stated in the consolidated financial reports or individual financial reports, as paid by the Company and by each other company included in the consolidated financial statements during the past 2 fiscal years to directors, presidents, and vice presidents, and analyze and describe remuneration policies, standards, and packages, the procedure for determining remuneration, and its linkage to operating performance and future risk exposure.

  • (1) Below is the analysis of the total remuneration, as a percentage of net income stated in the consolidated financial reports or individual financial reports, as paid by the Company and by each other company included in the consolidated financial statements during the past 2 fiscal years to directors, presidents, and vice presidents:

Ratio of total remuneration to net income Ratio of total remuneration to net income Ratio of total remuneration to net income Ratio of total remuneration to net income
The Company’s individual financial
Item Consolidated financial statements
statements
2023 2024 2023 2024
Director NT$ 27,031
thousand
4.16%
NT$ 33,514
thousand
3.62%		 NT$ 27,559
thousand
4.24%
NT$34,048
thousand
3.67%
President and vice
president		 NT$ 39,679
thousand
6.10%
NT$ 53,352
thousand
5.76%
NT$ 41,827
thousand
6.43%
NT$ 55,346
thousand
5.97%

  • Note: The Company resolved to distribute employee remuneration for 2024 in the amount of NT$108,700 thousand and director remuneration for 2024 in the amount of NT$14,000 thousand at the Board of Directors meeting dated February 27, 2025.

  • (2) The remuneration policies, standards and packages, the procedures for determining remuneration and their relationship to the Company's operating performance and future risks:

  • A. The Company’s independent directors are entitled to a fixed amount of remuneration. Other directors are entitled to no compensation other than the reimbursement of transportation expenses required for attending a Board meeting. In addition, according to Article 20 of the Company’s Articles of Incorporation, no less than 2% of the annual earnings may be allocated as directors’ remuneration. Such remuneration is firstly proposed to the Remuneration Committee in accordance with the Company’s remuneration distribution principles; if the committee gives the approval, such remuneration proposal is then summited to the Board of Directors and, if approved, implemented.

  • B. The appointment of the president and vice presidents is carried out according to the Company’s regulations; the compensation for the president and vice presidents is based on the Company’s regulations and the payment standards in the industry. Salary structure mainly comprises base salary, job pay differentials, bonus, and monetary perks.

  • C. The salary adjustment, year-end bonus, and bonus distribution therefor are determined based on the Company’s “Employee Promotion Regulations” and “Employee Performance Assessment Regulations”. Performance evaluation includes criteria such as managers’ KPI performance, professional skills, core occupational competencies, extent of contribution to

26

the Company, personal performance, and personal potential and prospect. The distribution proposal is firstly drafted by the management executives with consideration given to personal performance and the Company’s operational performance, then approved by the executives with the authority, then submitted to the Remuneration Committee for consideration, and, if approved, implemented. The remuneration system is reviewed, where appropriate, based on applicable laws and the status of operations, so as to strike a balance between the Company’s sustainable operations and risk control.

III. Corporate governance implementation

(I) Operation of the board of directors

The Board of Directors held 6 meetings and 2 meetings during 2024 and 2025, and during the period until the publication date of this annual report with a total of 8 meetings, respectively; The attendance and presence of directors are stated as follows:

Number of Number of Attendance
Title Name attendance attendance by (presence) rate Remarks
(presence)inperson
proxy		 (%)
Chairman Hung-Liang Hsieh 8 0 100％
Independent
director		 Jyan-Bang Chen 2 0 100％ Term expired on June 14,
2024;2 meetings required
Independent
director		 Sung-Jen Fang 8 0 100％
Independent
director		 Cheng-Li Yang 8 0 100％
Independent
director		 Shui-Chuan Shin; 6 0 100％ In office on June 14,
2024;6 meetings required
Independent
director		 Chun-Chi Lin 5 1 83% In office on June 14,
2024;6 meetings required
Director Ming-Chi Hsu 8 0 100％
Director Chung-Ho Shaw 7 0 88％
Director Representative of
Fullway Investment
Corporation:
Su-Chi Tien		 1 1 50％ Term expired on June 14,
2024; 2 meetings required
Director Han-LiangHu 7 1 88％
Director Wei-Lin Hsieh 6 2 75％
Note: Each Board of Directors meeting is attended by at least two independent directors in person.
Other matters to be recorded:

27

I. In the event of any of the following in a Board of Directors meeting, the dates of meeting, session, contents of
motions, the opinions of independent directors, and the Company’s response to the opinions should be specified:
(I) Matters specified in Article 14-3 of the Securities and Exchange Act:
Board of
Directors
meeting
Proposal Content and Follow-up Implementation
Whether an
independent
director objects
or has a qualified
opinion
17th meeting of
the 10th session
Feb. 29, 2024
1. The Company plans to issue the first domestic unsecured converted
corporate bonds and the second domestic unsecured converted
corporate bonds.
None
2. Proposal to appoint the attesting CPAs for the Company’s 2024
financial statements.
None
3. Proposal to loan funds to others.
None
4. Proposal to issue the Company’s 2023 Internal Control System
Statement.
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
2th meeting of
the 11th session
Aug.08, 2024
1. Proposal for the renewal of a one-year guarantee provided by the
Company for the short-term, unsecured, comprehensive bank credit
facilityof Scientech Engineering (HongKong)Limited.
None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
3th meeting of
the 11th session
Nov.01, 2024
1. Subsidiary Scientech Engineering Corp.(Shanghai) drafted the
"Procedures for Acquisition or Disposal of Securities Investments"
and "Internal Control System for Investment Cycles"
None
2. In order to strengthen and adjust the external investment structure of
the internal organization of the group, the Company plans to sell all
the shares of Xtek Semiconductor (Huangshi) Co., Ltd. held by its
overseas subsidiary Transcend Capital Corp. to its subsidiary
Scientech EngineeringCorp.(Shanghai).
None
3.Proposal on the 2025 annual auditplan
None
Opinion of an independent director: None.
None
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
4th meeting of
the 11th session
Dec.13, 2024
1 The Company's Risk Management Policyand Procedures
None
2. Investment in YAYATECH Co. LTd.
None
3. Investment in Alliance Material Co., Ltd.
None
4. Investment in overseas company ”Darwin Global I.I.P.
None
5. Investment in the new construction plan of Hukou No. 2 Factory
None
6. Investment in the new Tainan factory project
None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
5th meeting of
the 11th session
Jan.07, 2025
1. Amendment to the Subsidiary's "Procedures for Acquisition or
Disposal of Assets
None
2. Subsidiary purchases office
None
3. Dissolution of the subsidiary“Transcend Capital Corp.”
None		 In the event of any of the following in a Board of Directors meeting, the dates of meeting, session, contents of
motions, the opinions of independent directors, and the Company’s response to the opinions should be specified:
(I) Matters specified in Article 14-3 of the Securities and Exchange Act:
Board of
Directors
meeting
Proposal Content and Follow-up Implementation
Whether an
independent
director objects
or has a qualified
opinion
17th meeting of
the 10th session
Feb. 29, 2024
1. The Company plans to issue the first domestic unsecured converted
corporate bonds and the second domestic unsecured converted
corporate bonds.
None
2. Proposal to appoint the attesting CPAs for the Company’s 2024
financial statements.
None
3. Proposal to loan funds to others.
None
4. Proposal to issue the Company’s 2023 Internal Control System
Statement.
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
2th meeting of
the 11th session
Aug.08, 2024
1. Proposal for the renewal of a one-year guarantee provided by the
Company for the short-term, unsecured, comprehensive bank credit
facilityof Scientech Engineering (HongKong)Limited.
None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
3th meeting of
the 11th session
Nov.01, 2024
1. Subsidiary Scientech Engineering Corp.(Shanghai) drafted the
"Procedures for Acquisition or Disposal of Securities Investments"
and "Internal Control System for Investment Cycles"
None
2. In order to strengthen and adjust the external investment structure of
the internal organization of the group, the Company plans to sell all
the shares of Xtek Semiconductor (Huangshi) Co., Ltd. held by its
overseas subsidiary Transcend Capital Corp. to its subsidiary
Scientech EngineeringCorp.(Shanghai).
None
3.Proposal on the 2025 annual auditplan
None
Opinion of an independent director: None.
None
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
4th meeting of
the 11th session
Dec.13, 2024
1 The Company's Risk Management Policyand Procedures
None
2. Investment in YAYATECH Co. LTd.
None
3. Investment in Alliance Material Co., Ltd.
None
4. Investment in overseas company ”Darwin Global I.I.P.
None
5. Investment in the new construction plan of Hukou No. 2 Factory
None
6. Investment in the new Tainan factory project
None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
5th meeting of
the 11th session
Jan.07, 2025
1. Amendment to the Subsidiary's "Procedures for Acquisition or
Disposal of Assets
None
2. Subsidiary purchases office
None
3. Dissolution of the subsidiary“Transcend Capital Corp.”
None		 In the event of any of the following in a Board of Directors meeting, the dates of meeting, session, contents of
motions, the opinions of independent directors, and the Company’s response to the opinions should be specified:
(I) Matters specified in Article 14-3 of the Securities and Exchange Act:
Board of
Directors
meeting
Proposal Content and Follow-up Implementation
Whether an
independent
director objects
or has a qualified
opinion
17th meeting of
the 10th session
Feb. 29, 2024
1. The Company plans to issue the first domestic unsecured converted
corporate bonds and the second domestic unsecured converted
corporate bonds.
None
2. Proposal to appoint the attesting CPAs for the Company’s 2024
financial statements.
None
3. Proposal to loan funds to others.
None
4. Proposal to issue the Company’s 2023 Internal Control System
Statement.
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
2th meeting of
the 11th session
Aug.08, 2024
1. Proposal for the renewal of a one-year guarantee provided by the
Company for the short-term, unsecured, comprehensive bank credit
facilityof Scientech Engineering (HongKong)Limited.
None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
3th meeting of
the 11th session
Nov.01, 2024
1. Subsidiary Scientech Engineering Corp.(Shanghai) drafted the
"Procedures for Acquisition or Disposal of Securities Investments"
and "Internal Control System for Investment Cycles"
None
2. In order to strengthen and adjust the external investment structure of
the internal organization of the group, the Company plans to sell all
the shares of Xtek Semiconductor (Huangshi) Co., Ltd. held by its
overseas subsidiary Transcend Capital Corp. to its subsidiary
Scientech EngineeringCorp.(Shanghai).
None
3.Proposal on the 2025 annual auditplan
None
Opinion of an independent director: None.
None
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
4th meeting of
the 11th session
Dec.13, 2024
1 The Company's Risk Management Policyand Procedures
None
2. Investment in YAYATECH Co. LTd.
None
3. Investment in Alliance Material Co., Ltd.
None
4. Investment in overseas company ”Darwin Global I.I.P.
None
5. Investment in the new construction plan of Hukou No. 2 Factory
None
6. Investment in the new Tainan factory project
None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
5th meeting of
the 11th session
Jan.07, 2025
1. Amendment to the Subsidiary's "Procedures for Acquisition or
Disposal of Assets
None
2. Subsidiary purchases office
None
3. Dissolution of the subsidiary“Transcend Capital Corp.”
None
Board of
Directors
meeting		 Proposal Content and Follow-up Implementation Whether an
independent
director objects
or has a qualified
opinion
17th meeting of
the 10th session
Feb. 29, 2024		 1. The Company plans to issue the first domestic unsecured converted
corporate bonds and the second domestic unsecured converted
corporate bonds.		 None
2. Proposal to appoint the attesting CPAs for the Company’s 2024
financial statements.		 None
3. Proposal to loan funds to others. None
4. Proposal to issue the Company’s 2023 Internal Control System
Statement.
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
2th meeting of
the 11th session
Aug.08, 2024		 1. Proposal for the renewal of a one-year guarantee provided by the
Company for the short-term, unsecured, comprehensive bank credit
facilityof Scientech Engineering (HongKong)Limited.		 None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
3th meeting of
the 11th session
Nov.01, 2024		 1. Subsidiary Scientech Engineering Corp.(Shanghai) drafted the
"Procedures for Acquisition or Disposal of Securities Investments"
and "Internal Control System for Investment Cycles"		 None
2. In order to strengthen and adjust the external investment structure of
the internal organization of the group, the Company plans to sell all
the shares of Xtek Semiconductor (Huangshi) Co., Ltd. held by its
overseas subsidiary Transcend Capital Corp. to its subsidiary
Scientech EngineeringCorp.(Shanghai).		 None
3.Proposal on the 2025 annual auditplan None
Opinion of an independent director: None. None
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
4th meeting of
the 11th session
Dec.13, 2024		 1 The Company's Risk Management Policyand Procedures None
2. Investment in YAYATECH Co. LTd. None
3. Investment in Alliance Material Co., Ltd. None
4. Investment in overseas company ”Darwin Global I.I.P. None
5. Investment in the new construction plan of Hukou No. 2 Factory None
6. Investment in the new Tainan factory project None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
5th meeting of
the 11th session
Jan.07, 2025		 1. Amendment to the Subsidiary's "Procedures for Acquisition or
Disposal of Assets		 None
2. Subsidiary purchases office None
3. Dissolution of the subsidiary“Transcend Capital Corp.” None

28

(II) Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.
6th meeting of
the 11th session
Feb. 27, 2025		 1. Proposal to appoint the attesting CPAs for the Company’s 2025
financial statements.		 None
2. Proposal to loan funds to others None
3. Proposal to issue the Company’s 2024 Internal Control System
Statement.		 None
Opinion of an independent director: None.
The Company’s response to the independent director’s opinion: None.
Resolution: Unanimously approved by all directors attending the board
meeting.

II. Disclosure regarding avoidance of interest-conflicting motions, including the names of directors concerned, the motions, the nature of conflicting interests, and the voting process: On Feb. 29, 2024, the Board of Directors submitted the proposal to distribute employee remuneration and director remuneration for 2023. Since the proposal involves the interest of Chairman Hung-Liang Hsieh, Director Ming-Chi Hsu, and Director Wei-Lin Hsieh who are also managers of the Company, the Company’s Regulations Governing Procedure for Board of Directors Meetings requires that they recuse themselves from the discussion and voting of the proposal. Therefore, Chairman Hung-Liang Hsieh designated Director ChungHo Shaw to chair the discussion and voting of the proposal on his behalf. Except the said directors who recused themselves to avoid conflict of interest, other directors approved the proposal in whole and reported it to the Shareholders' Meeting. On February 27, 2025, the Board of Directors submitted the proposal to distribute employee remuneration and director remuneration for 2024. Since the proposal involves the interest of Chairman Hung-Liang Hsieh, Director Ming-Chi Hsu, and Director Wei-Lin Hsieh who are also managers of the Company, the Company’s Regulations Governing Procedure for Board of Directors Meetings requires that they recuse themselves from the discussion and voting of the proposal. Therefore, Chairman Hung-Liang Hsieh designated Director SungJen Fang to chair the discussion and voting of the proposal on his behalf. Except the said directors who recused themselves to avoid conflict of interest, other directors approved the proposal in whole and reported it to the Shareholders' Meeting.

29

III. A TSWE- or TPEx-listed company shall disclose information on the director’s self-evaluation (or peer evaluation) in terms of frequency, period, scope, method, and content, and shall fill in Table 2 Status of Directors Performance Evaluation Implementation.

Evaluation
periodicity		 Evaluation period Evaluation
scope		 Evaluation method Evaluation
content
Annually Jan. 2024~ Dec. 2024 Note 1 Through a form designed by the
Companyitself		 Note 2

Note 1: The evaluation scope covers 1. Self-evaluation of the performance of the Board of Directors as a whole; 2. Self-evaluation of the performance of the board members; 3. Self-evaluation of the performance of the Remuneration Committee; and 4. Self-evaluation of the performance of the Audit Committee; 5. Sefevaluation of the performance of the Sustainable Development Committee.

Note 2: Evaluation content: A. The content of the self-evaluation of the performance of the Board of Directors as a whole contains the extent of participation in the operations of the Company; improvement in the quality of the board of directors' decision making; composition and structure of the board of directors; election and continuing education of the directors; and internal control. B. The content of the self-evaluation of the performance of the board members covers the alignment of the goals and missions of the Company; awareness of the duties of a director; participation in the operations of the Company; management of internal relationship and communication; the director's professionalism and continuing education; and internal control. C. The content of the self-evaluation of the performance of the functional committees covers the participation in the operations of the Company; awareness of the duties of the functional committees; improvement in quality of decisions made by the committees; composition of the committees and election of their members; and internal control.

30

IV. An evaluation of targets for strengthening of the functions of the board during the current and immediately preceding fiscal years.

The Company has three elected independent directors, who assemble the Audit Committee, thus enhancing corporate governance.

The Company has formulated the Rules for Performance Evaluation of Board of Directors; it distributes selfperformance evaluation questionnaire in Decembers to all board members. The questionnaire evaluates not only the operation of the Board of Directors as a whole, but also the performance of individual board members. In terms of improvement in information transparency, the Company’s financial information and material motions are all resolved at a Board of Directors as required by the Regulations Governing Procedure for Board of Directors Meetings of Public Companies. Material resolutions are also disclosed on the Market Observation Post System (MOPS) in accordance with the public information disclosure principles.

The self-evaluation of the performance of the board members includes evaluation items such as the participation in the operations of the Company, improvement in the quality of the board of directors' decision making, composition and structure of the board of directors, election and continuing education of the directors, and internal control. To enhance the continuing education of directors and improve the enterprise risk management function, the Company plans to recruit dedicated instructors to give lessons to directors within the Company.

As of Aug. 8, 2024, the training course“Enterprise sustainability and resilience management“ was completed, taken by 8 incumbent directors; As of Nov. 1, 2024, the training course“Performance evaluation practices related to corporate "ESG sustainability" and "risk management" “ was completed, taken by 5 incumbent directors 。 In addition, the directors also participated in the following courses respectively: “Global Economic Outlook” , “Code of Integrity Business and How to Avoid Crossing the Red Line of Responsibilities of Directors and Supervisors”, “Integrity Business Practices and Insider Trading”, “Introduction to generative AI and industrial application examples”, “How does the board of directors ensure the sustainable operation of the enterprise-from the discovery and cultivation of talents”, “Refresher Course for Listed Directors - Board of Directors vs. Management Team”, “Sustainable development of enterprises and international trends in corporate governance”, “Strengthening Taiwan Capital Market Summit”, “Introduction to corporate law, corporate governance and taxation knowledge that senior personnel should understand”.

(II) Operation of the audit committee:

The Company adopts an audit committee system. The Audit Committee is composed of 3 independent directors. The Audit Committee mainly serves the function of helping the Board of Directors improve the performance of corporate governance, mainly by formulating the Company’s internal control system and performance evaluation system, reviewing the Company’s financial statements to ensure its fair presentation, supervising the procedures pertaining to the Company’s major business and financial conduct, ensuring that the Company complies with applicable laws and regulations, and appointing (discharging) the attesting CPAs. The professional qualifications and experience of the members of the Audit Committee are stated as follows:

31

Member’s Professional qualifications and experience
Convener
Cheng-Li Yang		 Independent director Cheng-Li Yang hold a MBA degree in Tulane University of the
USA; used to be an independent director of Giga-Byte Technology Co., Ltd.,
independent director of Ace Pillar Co., Ltd., supervisor of Tekcore Co., Ltd., and
supervisor of Trade-Van Information Services Co.; and currently serve as Chairman of
King Core Electronics Inc., Chairman of Allied Biotech Corp., and independent
director of Giga-Byte Technology Co., Ltd. With his rich academic and pragmatic
qualifications, he can advise the Company on company management, industrial
development,and technologies.
Committee
member
Sung-Jen Fang		 Independent director Sung-Jen Fang is a Ph.D. in Applied Materials Science and
Engineering from Stanford University. He used to participate in the R&D of
semiconductor advanced process in Texas Instruments and the R&D Department of
United Microelectronics; be an adjunct assistant professor in the Department of
Industrial Engineering of Yuan Ze University teaching semiconductor factory
practicals; and be an independent director of Hycon Technology Corporation and
Asolid Technology Co., Ltd. Currently, He is Chairman of Darwin Venture
Management Corporation; director of GTM Holdings Corporation; director of Teco
Electric & Machinery Co., Ltd.; and director of Teco Image Systems Co.,Ltd. He
specializes in the semiconductor industry and the innovative management of
technologycompanies.
Committee
member
Shui-Chuan,
Shin		 Independent director Shui-Chuan, Shin holds a Master's degree in the Physics Dept. of
National Tsing Hua University. He used to be a general manager of VisEra
Technologies Company Ltd., director of TSMC; Currently, he is a director of Pearl S.
Buck Foundation, director of Big-Fish-Huang Culture and Art Foundation, and director
of Yuan T.Lee FoundationScience Education for All
Committee
member
Chun-Chi, Lin		 Independent director, Chun-Chi, Lin was holds a Master's degree in Applied Chemistry
from National Tsing Hua University. He used to a Senior Director of TSMC, CEO &
General Manager of VisEra Technologies Company Ltd., CEO of XINTEC INC.,
Executive Vice President of Global Unichip Corp. Group General Manager of Kanto-
PPC Group; Currently, he served as President of Taiwan Electron Microscope
Instrument Corp., Director of Taiflex Scientific Co., Ltd., Independent director of
M31 Technology Corp. Independent director of Silicon Optronics Inc. , Director,
STEK CO., LTD., Director, Jiji Investment Co., Ltd.

Duties of the Company’s Audit Committee include:

  1. Business report

  2. Review the annual financial statements and the financial report of the second quarter audited by the attesting CPA.

  3. Formulate and amend the internal control system and assess the effectiveness thereof; and formulate and amend the procedures for financial or operational actions of material significance such as acquisition or disposal of assets, derivatives trading, extension of monetary loans to others, and endorsements or guarantees for others.

  4. Matters involving the personal interest of directors or supervisors.

  5. Transaction of material assets or derivatives; material loaning of funds; provision of endorsement or guarantee.

  6. The offering, issuance, or private placement of equity-type securities.

  7. Appointment and discharge of, and compensation for, attesting CPAs; appointment and discharge of financial/accounting/internal audit officers.

32

  1. A donation to a related party, or a major donation to a non-related party. However, public welfare donations for the emergency relief of major natural disasters may be ratified in the next board meeting.

  2. Other material matters required by the competent authority by law.

The major content of the Audit Committee’s achievements in 2024 include:

  1. Convening of the Audit Committee meetings: The Audit Committee mainly helped the Board of Directors execute and supervise the Company’s conduct in terms of accounting, audit, financial reporting procedures, and control of financial quality and financial ethnics. The main content, in addition to the 9 major tasks listed above, included the self-evaluation of the performance of the Audit Committee.

  2. Evaluation of the effectiveness of the internal control system: After evaluating the policy and procedures pertaining to the Company’s internal control system, the Audit Committee believed the Company’s risk management system and internal control system effective on the basis that the Company had adopted necessary control mechanisms to monitor and correct any misconduct.

  3. Review of the financial statements: After reviewing the 2024 Business Report, Earnings Distribution Proposal, Individual and Consolidated Financial Statements (including the balance sheet, statement of comprehensive income, statement of changes in equity, and statement of cash flows) that were prepared by the Company’s Board of Directors, the Audit Committee did not find any non-conformities, and thus prepared this Audit Committee Review Report in accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

  4. Appointment of attesting CPA: By reviewing the independence and suitability of the appointed CPAs on February 29, 2024 and February 27, 2025, the Audit Committee completed the appointment of attesting CPAs for 2024 and 2025 respectively.

  5. The Audit Committee reviews the audit report, which is prepared by the chief audit officer, against the content of the annual audit plan.

During 2024, and during 2025 until the publication date of this annual report, the Audit Committee held 5 meetings and 2 meetings, respectively, totaling 7 meeting (A), with the attendance and presence of directors which is stated as follows:

Number of Number of Attendance rate
Title Name attendance in attendance by (%) Remarks
person (B) proxy (B/A)
Independent
director		 Jyan-Bang Chen 2 0 100% Term expired on June 14,
2024; 2 meetings required
Independent
director		 Cheng-Li Yang 7 0 100% In office from June 7, 2016
till now
Independent
director		 Sung-Jen Fang 7 0 100% In office from June 11, 2018
till now
Independent
director		 Shui-Chuan Shin; 5 0 100% In office from June 14, 2024
till now
Independent
director		 Chun-Chi Lin 5 0 100% In office from June 14, 2024
till now

33

Note: Each meeting is attended by at least two independent directors in person. Other matters to be recorded:

  • I. In the event of any of the following circumstances in the audit committee, the dates of the Board of Directors meeting, session, content of motions, resolutions of the audit committee meetings, and the Company’s response to audit committee members’ opinion should be specified:

  • (I) Matters specified in Article 14-5 of the Securities and Exchange Act:

34

Resolution not adopted by
the Audit Committee but
adopted by two thirds or
more of all directors of the
Board of Directors
None
None
None
None
None
None
None
None
None
None
None
None
None
None
None
Audit Committee Proposal Content and Follow-up Implementation Resolution not adopted by
the Audit Committee but
adopted by two thirds or
more of all directors of the
Board of Directors
13th meeting of
the 4th session
Feb. 29, 2024		 1. The Company’s 2024 Business Report and Financial
Statements(includingthe Consolidated Financial Statements)		 None
2. The Company plans to issue the first domestic unsecured
converted corporate bonds and the second domestic unsecured
converted corporate bonds.		 None
3. Proposal to appoint the attesting CPAs for the Company’s
2024 financial statements.		 None
4. Proposal to loan funds to others None
5. Proposal to issue the Company’s 2023 Internal Control System
Statement.		 None
Audit Committee members’ opinion: None.
The Company’s response to the audit committee member’s
opinion: None.
Resolution: Unanimously approved by all Audit Committee
members attendingthe board meeting.
1th meeting of
the 5th session
Aug.08, 2024		 1. Proposal for the renewal of a one-year guarantee provided by
the Company for the short-term, unsecured, comprehensive
bank credit facility of Scientech Engineering (Hong Kong)
Limited.		 None
Audit Committee members’ opinion: None.
The Company’s response to the audit committee member’s
opinion: None.
Resolution: Unanimously approved by all Audit Committee
members attendingthe board meeting.
2h meeting of the
5th session
Nov. 1, 2024		 1. Subsidiary Scientech Engineering Corp.(Shanghai) drafted the
"Procedures for Acquisition or Disposal of Securities
Investments" and "Internal Control System for Investment
Cycles"		 None
2. In order to strengthen and adjust the external investment
structure of the internal organization of the group, the
Company plans to sell all the shares of Xtek Semiconductor
(Huangshi) Co., Ltd. held by its overseas subsidiary Transcend
Capital Corp. to its subsidiary Scientech Engineering
Corp.(Shanghai).		 None
3.Proposal on the 2025 annual auditplan None
Audit Committee members’ opinion: None.
The Company’s response to the audit committee member’s
opinion: None.
Resolution: Unanimously approved by all Audit Committee
members attendingthe board meeting.
3h meeting of the
5th session
Dec.13, 2024		 1 The Company's Risk Management Policyand Procedures None
2. Investment in YAYATECH Co. LTd. None
3. Investment in Alliance Material Co., Ltd. None
4. Investment in overseas company ”Darwin Global I.I.P. None
5. Investment in the new construction plan of Hukou No. 2
Factory		 None
6. Investment in the new Tainan factory project None
Audit Committee members’ opinion: None.
The Company’s response to the independent director’s opinion:
None.

35

Resolution: Unanimously approved by all directors attending the
board meeting.
1. Amendment to the Subsidiary's "Procedures for Acquisition or
None
Disposal of Asset”.
2. Subsidiary purchases office
None
4th meeting of
the 5th session
Jan.07, 2025
3. Dissolution of the subsidiary“Transcend Capital Corp.”
None
Audit Committee members’ opinion: None.
The Company’s response to the independent director’s opinion:
None.
Resolution: Unanimously approved by all directors attending the
board meeting.
1. Proposal to appoint the attesting CPAs for the Company’s
None
2025 financial statements.
2. Proposal to loan funds to others
None
5th meeting of
the 5th session
3. Proposal to issue the Company’s 2024 Internal Control System
Statement.
None
Feb. 27, 2025
Audit Committee members’ opinion: None.
The Company’s response to the independent director’s opinion:
None.
Resolution: Unanimously approved by all directors attending the
board meeting.
(II) Any other resolutions that were approved by two thirds of Board members but not approved by the Audit
Committee other than those described above: None
II. When there is avoidance of conflict of interest by an independent director, state the name of that independent
director, the involved proposal(s), the cause(s) of the avoidance of conflict of interest, and the participation in
voting of that independent director: None
III. Communication between the Independent Directors and internal audit officer and CPAs (e.g., matters, methods,
and results of communication regarding the Company's financial and business status):
(I) Communication between the internal audit officer and the Audit Committee:
1. Periodically, the Company’s audit officer reports at an Audit Committee meeting at least quarterly,
and will immediately report to the Audit Committee upon detection of any anomaly. The officer also
answers any questions raised by the independent directors, and enhances the audit content as
instructed by the independent director to ensure the effectiveness of the internal control system. For
details, refer to the Company’s website:http://www.scientech.com.tw
2. In normal business days and at irregular intervals, the audit content will be communicated by phone
or email, or face to face; any material violation is immediately reported to the independent directors.
(II) Communication between CPAs and the Audit Committee:
1. Periodically, at least four times a year, CPAs communicates with the Audit Committee about the
implementation and results of the review or audit of the quarterly or annual financial statements
around the time when such statements are being reviewed or audited. For details, refer to the
Company’s website:http://www.scientech.com.tw
2. At irregular intervals, if it is necessary to have immediate communication or discussion about
operations or individual internal control cases, a meeting will be arranged where appropriate.

36

(III) The Company's implementation of corporate governance and the differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
I. Has the Company formulated and
disclosed its corporate governance
best practice principles in
accordance with the “Corporate
Governance Best Practice
Principles for TWSE/TPEx Listed
Companies”?		 V The Company has formulated its own “Corporate Governance Best Practice
Principles”, by which all work is carried out. Up until now there is no major difference.		 None
II. The Company's equity structure and shareholder equity
(I) Has the Company established
internal operating procedures to
handle shareholder
recommendations, doubts, disputes
and litigations, and implemented
them in accordance with the
procedures?		 V (I) The Company handles shareholder recommendations, doubts, disputes and
litigations by law.
In addition to having a spokesperson system, the Company also commissioned a
stock agency to set up a post dedicated to handling the Company’s stock affairs.
Furthermore, the Company’s website also has an investor’s zone in which they can
raise any questions and through which the Company can handle shareholder
recommendation or disputes.		 None
(II) Does the Company have a list of
the major shareholders who actually
control the Company and those who
ultimately have control over the
major shareholders?

V		 (II) As required by law, the Company periodically discloses a list of major shareholders
and their ultimate controllers, and files any changes therein, if any. Meanwhile,
through interaction with major shareholders, the Company is able to always get a
good grasp of the major shareholders who actually control the Company, as well as
their ultimate controllers.		 None
(III) Has the Company established
and implemented risk control and
firewall mechanisms between
affiliated companies?
V		 (III) The Company operates independently from associates, and has them establish
their own internal control system and internal audit system. There are also the
“Regulations Governing the Transactions between Group Entities, Specific
Companies, and Related Parties” and the “Regulations Governing the Monitoring of
Subsidiaries” in place, which are implemented to effectively control the operating
risks of associates.
None

37

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
(IV) Has the Company formulated
internal regulations to prevent
insiders from trading securities
using undisclosed information on
the market?		 V (IV) The Company has formulated internal regulations governing the management
approaches for insider-trading prevention, as well as the Regulations for Dealing
with Reporting of Illegal, Unethical, or Dishonest Conduct, prohibiting insiders
from trading marketable securities using information not disclosed to the market.		 None
III. Composition and responsibilities of the Board of Directors
(I) Has the Board of Directors
formulated policy regarding the
diversity of membership and
implemented the same accordingly?
V		 (I) The membership composition of the Board of Directors is based on the “Corporate
Governance Best Practice Principles” and “Procedures for Election of Directors”,
specifically by considering the board membership diversity from different aspects,
including, but are not limited to, gender, age, nationality, culture, professionalism
(e.g., law, accounting, industry, finance, marketing, or technology), professional
skills, and industrial experience. For the embodiment of board membership
diversity, refer to Note 1. The Company’s Board of Directors is composed of nine
directors, of whom four are independent directors and one is female independent
directors. Board members are experts in management, science and engineering, or
financial analysis; have involved in the management of the technology industry;
have the literacy that the Company needs such as industrial knowledge about
semiconductors, operational judgment capability, a cosmopolitan market view,
leadership, and decision-making capability; and can offer professional advice from
different aspects, thus helping improve the Company’s operating performance and
management benefits. As for the Company’s board membership diversity policy, it
attaches importance to gender equality, in that it stipulates that female directors
account for no less than 20% of total board seats. For details on P.46, refer to Note
1: Status of implementation of board membership diversity.		 None
(II) In addition to the Remuneration
Committee and the Audit
Committee established in		 V (II) The Company has established the Remuneration Committee and the Audit
Committee in law, and also set up a Sustainable Development Committee. In the
future,other functional committees will be set upif required.		 None

38

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
accordance with law, has the
company voluntarily set up other
functional committees?
(III) Has the Company established its
Rules for Performance Evaluation
of Board of Directors and the
evaluation methods, conducted the
performance appraisal regularly
every year and provided the results
to the board as the reference for
directors' remuneration and
nomination and renewal?		 V (III) On April 28, 2015, the board approved the Rules for Performance Evaluation of
Board of Directors, by which the board performance is evaluated annually. The
Company distributes self-performance evaluation questionnaire in Decembers to
all board members. The questionnaire evaluates not only the operation of the Board
of Directors as a whole, but also the performance of individual board members.
The content of the self-evaluation of the performance of the Board of Directors as
a whole contains the extent of participation in the operations of the Company;
improvement in the quality of the board of directors' decision making;
composition and structure of the board of directors; election and continuing
education of the directors; and internal control. In addition, the content of the self-
evaluation of the performance of the board members covers the alignment of the
goals and missions of the Company; awareness of the duties of a director;
participation in the operations of the Company; management of internal
relationship and communication; the director's professionalism and continuing
education; and internal control.
The content of the self-evaluation of the performance of the Audit Committee
covers the participation in the operations of the Company; awareness of the duties
of the Audit Committee; improvement in quality of decisions made by the Audit
Committee; composition of the Audit Committee and election of its members; and
internal control.
The content of the self-evaluation of the performance of the Remuneration
Committee covers the participation in the operations of the Company; awareness
of the duties of the Remuneration Committee; improvement in quality of decisions
made by the Remuneration Committee; composition of the Remuneration
Committee and election of its members;and internal control.
None

39

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
The latest evaluation of the performance of the Board of Directors as a whole and
the performance of individual board members was completed in December 2024.
The evaluation results had been presented to the Board of Directors on February
27, 2025. The results indicate a score of 95 points for the evaluation of the Board
of Directors as a whole, 98 points for the self-evaluation of individual board
members, and 96 points for the evaluation of functional committees, all of which
will be referenced when determining the remuneration for directors and the
nominees for the director election.
Suggestions and improvements for the Board of Directors Evaluation in 2024:
1. Independent directors provide advice：the Company should pay attention to the
risks of upstream and downstream vendors, and effectively perform the duties of
directors.'"
2. In the annual self-performance evaluation of the board of directors in 2024,
directors should be encouraged to participate in training courses. In 2025,
directors will continue to be urged to attend director courses.
(IV) Does the company regularly
evaluate the independence of
attesting CPAs?		 V (IV) The Company evaluates the independence and suitability of appointed CPAs
annually in accordance with the Company’s “Corporate Governance Best
Practice Principles” and with reference to the AQI’s report. The evaluation for
2024 and 2025 was completed at the Board of Directors meeting dated Feb. 29,
2024 and Feb. 27, 2025, respectively. The evaluation criteria were based on the
statement, which was prepared by CPAs according to the “Bulletin of the Norm
of Professional Ethics for Certified Public Accountant of the Republic of China
No. 10. Integrity, Objectivity and Independence” issued by the CPA
ASSOCIATIONS R.O.C.(TAIWAN), stating therein that the CPAs did not
violate any independence or rules governing conflict on interest. Based on the
statement, the Company evaluated whether the CPAs are the Company’s
directors or shareholders, or whether they receive salary from the Company. In
doing so, the Company concluded that the CPAs are not a stakeholder of the
Company. The Companyalso obtained information on the CPAs’ academic and		 None

40

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
work experience as well as their customers so as to evaluate their suitability (for
details,refer top.47 Note 2: CPAs Independence Evaluation Criteria.)
IV. Has the Company allocated
qualified and sufficient number
of personnel and appointed
managers in charge of corporate
governance affairs (including but
not limited to furnishing
information required for business
execution by directors and
supervisors, assisting directors
and supervisors to comply with
laws, handling matters relating to
board meetings and shareholder
meetings according to laws,
handling matters relating to
business registration and
registration modification,
recording minutes of board
meetings and shareholder
meetings, etc.)?

V		 The Company's chairman's office is the unit to promote corporate governance. On May
5, 2023, the board of directors appointed Shu-Chen, Shen, Associate vice president,
who has more than three years of experience in the management of legal affairs in the
public offering company, as the full-time corporate governance supervisor to be
responsible for handling the affairs of the board of directors and shareholders'
meetings, and responsible for the provision of materials required for the directors to
perform their duties; convening of the Board of Directors meetings and Shareholders'
Meetings by law and handling of matters thereof; conducting of business registration
and registration modification within the timeframe; taking and distribution of minutes
of the Board of Directors meetings and Shareholders' Meetings on time; convening of
investors’ conference; participation in investment forum at irregular intervals;
establishment of a spokesperson system; and establishment of diverse communication
channels for communication with investors, so as to protect shareholders’ equity and
enhance the board functions.
The major achievements of the corporate governance unit in 2024 are as follows: 1.
Conducting Board of Directors meeting and shareholder meeting related matters in
accordance with law; 2. preparing minutes of Board of Directors meetings and
shareholder meetings; 3. assisting directors and supervisors in continuing education; 4.
providing information necessary for directors and supervisors to perform their duties;
5. assisting directors and supervisors to comply with laws and regulations; 6.
organizing charitable events; 7. irregularly assisting in the communication between
independent directors, audit officers, CPAs, and the management - the communication
is good so far; 8. uploading the results of the said communication to the Company’s
website for investors’ reference; and 9. informing the Board of Directors members of
the competent authority’s directions or regulations on corporate governance.		 None

41

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
The Company’s supervisor of corporate governance will take 25 hours of relevant
course training within one year at his post.
V. Has the company established
communication channels with
stakeholders (including but not
limited to shareholders,
employees, customers and
suppliers, etc.) and a special
section for stakeholders on the
company's website, and
responded appropriately to
important corporate social
responsibility issues that are of
concernto stakeholders?		 V The Company has a spokesperson system, which is a communication channel with
stakeholders, and has set up a special section for stakeholders on its website.
Stakeholders can also communicate with the company by telephone, mail, and email.
The Company has set up a “Company Mailbox”, through which internal and external
personnel can submit suggestions or file complaints to the Company. The Company
summarizes communication matters with stakeholders every year, starting from 2019,
and reports the same to Board of Directors annually. For details, please refer to the
Company's websitehttps://www.scientech.com.tw.The latest report to the board of
directors on communication with stakeholders was on May 10, 2024.		 None
VI. Has the company appointed a
professional stock affairs agency
to handle matters for shareholder
meetings?
V		 The Company has appointed CTBC Bank, a professional stock agency, to handle the
Shareholders' Meetings and stock affairs.		 None
VII. Public disclosure of information
(I) Has the Company set up a website
to disclose finance and business
matters and corporate governance
information?		 V (I) The Company has set up a website, and discloses information on its financials,
business, and corporate governance affairs on the Company’s website and the
Market Observation Post System (MOPS) as required by law.		 None
(II) Has the Company adopted other
means of information disclosure
(such as setting up an English
website, appointing dedicated
personnel responsible for the		 V (II) The Company has set up a company website, where a special zone is reserved for
investors and the information on the Company’s financials, business, and corporate
governance are regularly updated for investors' reference. The Company has
designated a person dedicated to collecting and disclosing the Company’s
information,and has implemented a spokesperson system as required bylaw.		 None

42

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
collection and disclosure of
Company information,
implementing a spokesperson
system, posting the Company's
earnings calls on its website,etc.)?		 Information on the Company’s investor’ conference is announced simultaneously
on the Market Observation Post System (MOPS) as required by law, and on the
investor zone on the Company's website.
(III) Does the Company publish and
make official filing of annual
financial report within two months
after the end of an accounting
period, and publish/file Q1, Q2 and
Q3 financial reports along with the
monthly business performance
statements before the required due
dates?
V		 (I) In 2014, the Company failed to announce and file its annual financial report within
two months after the end of the fiscal year, and failed to announce and file its first,
second and third quarter financial reports in advance before the prescribed deadline,
but did announce the monthly business performance statements of each month on
time.		 Ongoing improvement
VIII. Does the company have other
important information that is
helpful to understand its
implementation of corporate
governance (including but not
limited to employee rights,
employee care, investor relations,
supplier relations, stakeholder
rights, continuing education of
directors and supervisors,
implementation of risk
management policies and risk
measurement standards,
implementation of customer
policies, the company’spurchase		 V (I) Employee rights and employee care
1. The Company always pursues harmony and a win-win situation when it
comes to employees’ rights, and carries out the various management systems
in accordance with applicable labor laws and regulations.
2. Upholding the ideal that all men are equal, the Company’s management
policy and measures respecting recruitment, employment, promotion, etc. do
not discriminate based on sex, age, race, religion, or political affiliation. In
addition, the Company has made available several smooth complaint-filing
and communication channels, in that employees may reflect their opinions at
the annual meeting, through the complaint-filing hotline or employee
mailbox, or at a labor-management meeting. Since establishment, the
Company has not had any material labor dispute.
3. Employee welfare: The Company organizes group tours and employee
activities from time to time every year to enhance the interaction between		 None

43

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
of liability insurance for directors
and supervisors, and so on)?		 colleagues and their families, and the affection and recognition of colleagues
towards the Company.
4. For details, refer to Four - Operational Highlights - Labor relations on
p.119~121 of this annual report, which describes the Company’s care for
employees and employees’ rights.
(I) Investor relations
1. The Company has a spokesperson system and a stock affairs unit, which deal
with shareholder suggestions or disputes.
2. The Company has set up a post dedicated to disclosing real-time information
on any changes in the Company’s financials, business, or shareholding of
insiders on the Market Observation Post System (MOPS), and always keeps
good communication with shareholders.
(III) Supplier relations and stakeholder rights
The Company always sticks to the principle of integrity and mutual benefits
when it comes to transactions with suppliers in order to maximize the benefits
there between, thereby forging a stable partnership. The Company regularly
evaluates suppliers and thus fully communicating with them. Therefore, the
business relation between the Company and suppliers has been good. In
addition, being a public company, the Company discloses information on its
operations as required by law, so as to provide timely information for
stakeholders.
(IV) Continuing education of directors: The Company periodically urges directors to
attend relevant courses. For details, refer to p.49 of the Appendix below.
(V) Implementation of risk management policies and risk measurement standards:
The Company has established and implemented its internal control and internal
audit systems to reduce its operational risks. Please refer to Five. Review and
Analysis of the Financial Position and Results of Operations and Risk
Management onp.128 ~ 137 of this annual report.

44

The differences from the Corporate
The State of Operation
Governance Best Practice Principles
Item
for TWSE/TPEx Listed Companies
Yes No Summary description for TWSE/GTSM Listed Companies
and the reasons therefor.
(VI) Implementation of customer policies: The Company keeps promoting the
quality management policy to ensure service quality and customer satisfaction.
(VII) The Company’s purchase of liability insurance for directors and supervisors:
The Company assesses the insured amount of the liability insurance policy for
directors every year. This year, the Company purchased a liability policy of
US$3 million for each director and major manager, and reported critical
insurance content such as insured amount, insurance coverage, and insurance
premium to the Board of Directors meeting dated November 1, 2024
(VIII)The Company has formulated the “Regulations for Prevention of Insider
Trading”. In addition, the Company has a person dedicate to have the
information on the Company’s operations approved by the competent authority
within the timeframe and in the manner specified by the competent authority;
any material information treatment or disclosure thereafter will be carried out
on the same basis. Meanwhile, the Company from time to time informs
insiders of anymaterial internal information.
IX. Please explain improvements that have been made as well as priorities to improve the results of the Corporate Governance Evaluation issued by the Taiwan Stock Exchange
Corporate Governance Center:
The Company performed exceptionally in the Corporate Governance Evaluation. The Company assessed the parts that it failed to score for improvement measures, and
prioritized such improvement measures as follows:
(I) Improvement that has been made: 1. All directors are elected under the nomination system to implement corporate governance. 2. Ballots are cast electronically. 3. An
investors’ conference is held every year. 4. Cyber security management policy is introduced. 5. The Company’s operation and implementation corporate social
responsibilities have been disclosed in the annual report and on the company website.
(II) Prioritized items to be improved in the future: 1. To advocate directors taking more hours of training courses. 2. To advocate Remuneration Committee members attending
a meeting in person. 3. To hold the General Shareholders’ Meeting at the end of May. 4. Compile a sustainability report. 5. To disclose the annual financial report within
two months after the end of a fiscal year.

45

Note 1: Status of implementation of board membership diversity:

Director Gender
Concurrently
serving as an
employee		 Term and seniority of
independent director		 Term and seniority of
independent director		 Term and seniority of
independent director		 Business Leadership
and		 Industry Financial Investment
Age
director
Nationality
d under 3 4~9 More than administration decision-
knowledge		 accounting management
uner
50		 5160 610
~ ~7 70~80 years years 9years making
Hung-LiangHsieh ROC Male V V V V V
Sung-Jen Fang ROC Male V V V V V V
Cheng-Li Yang ROC Male V V V V V V V
Shui-Chuan,Shin ROC Male V V V V V
Chun-Chi,Lin ROC Male V V V V V V
Ming-Chi Hsu ROC Male V V V V V
Chung-Ho Shaw ROC Male V V V V V V
Han-LiangHu ROC Male V V V V V
Wei-Lin Hsieh ROC Female V V V V

46

Note 2: CPAs Independence Evaluation Criteria

CPA, Hui-Min Huang CPA, Hui-Min Huang CPA, Yu-Cheng Hsin CPA, Yu-Cheng Hsin
Period: Jan. 1, 2024-Dec. 31, Period: Jan. 1, 2024-Dec. 31,
Evaluation Item Circumstances affecting to independence Evaluation
 2024 2024
result Violation of Independence Violation of Independence
Yes No Yes No
A. Evaluation of
beneficial
interest between
the CPA and the
Company.		 1 Does the CPA have direct or significant indirect financial interest
relationships with the Company?		 N/A V V
2 Does the CPA conduct financing or guarantee activities with the
Companyor the Directors of the Company?		 N/A V V
3 Does the CPA have intimate business relationship with the Company
or the Directors, Managers?		 N/A V V
4 Does the member of the audit team has potential employment
relationships with the Company?		 N/A V V
5 Is there contingent fee related to the audit work? N/A V V
B. Evaluation of
whether the CPA
has dual identity.
1		 Did the member of the audit team use to be a director or manager of
the Company, or take any post within the Company that has great
influence over the audit work,in the last twoyears?		 N/A V V


2		 Does the CPA provide the Company with non-audit service which
could directly influence the audit work?		 N/A V V
C. Does the CPA
act as a defender
of the
Company's
position?		 1 Does the member of the audit team act as a defender for the
Company or mediate a dispute with another third party on the behalf
of the Company?		 N/A V V
D. Evaluation of
familiarity with
the CPA and
Company
personnel.		 1 Does the member of the audit team has a family relationship with
company’s directors, managers or personnel who has significant
impact on audit work?		 N/A V V
2 Does the CPA who has retired within one year serve as company’s
director, manager or personnel with significant impact on the audit
work?		 N/A V V
3 Does the member of the audit team receive significant gifts or special
offers from the Company or the directors, managers, or major
stockholders?
N/A		 V V

47

CPA, Hui-Min Huang CPA, Hui-Min Huang CPA, Yu-Cheng Hsin CPA, Yu-Cheng Hsin
Period: Jan. 1, 2024-Dec. 31, Period: Jan. 1, 2024-Dec. 31,
Evaluation Item Circumstances affecting to independence Evaluation
 2024 2024
result Violation of Independence Violation of Independence
Yes No Yes No
E. Evaluation of
whether the CPA
has been
intimidated by
the Company.
1		 Does the Company put pressure on the member of the audit team to
make them improperly reduce the inspection work that should be
performed,in order to reduce audit fee?		 N/A V V
2 Does the company require the member of the audit team to accept the
management's improper choice of accounting policies or improper
disclosure of financial statements?
N/A		 V V
F. Evaluation of the
attesting CPA’s
practice period
1		 Does the attesting CPA is subject to disciplinary action? N/A V V

2		 Did the same CPA engaged in the attestation has served for the
Company more than seven years (including the current year)?		 N/A V V
Evaluation result: Regarding the assessment, the CPAs, Hui-Min Huang and Yu-Cheng Hsin, have passed the Company’s independent evaluation criteria in 2023, and there is
nothing occurred with the effect on independence.

48

Note 3: Continuing education of directors: The Company periodically urges directors to attend relevant courses.
Date Name Organizer Course name Number of hours Date
Independent
director		 2024/2/27 Sung-Jen
Fang		 Taiwan Institute of Directors Global Economic Outlook 3
Independent
director		 2024/3/26 Chun-Chi Lin Taiwan Investor Relations Institute Code of Integrity Business and How to Avoid Misstepping on the
Red Line of Responsibilities of Directors and Supervisors		 3
Independent
director		 2024/5/7 Chun-Chi Lin Taiwan Investor Relations Institute Integrity Business Practices and Insider Trading 3
Director 2024/5/8 Chung-Ho
Shaw		 Taiwan Corporate Governance Association , TCGA Introduction to generative AI and industrial application examples 3
Independent
director		 2024/5/14 Cheng-Li
Yang		 Accounting Research and Development Foundation How does the board of directors ensure the sustainable operation of
the enterprise-from the discoveryand cultivation of talents		 3
Director 2024/6/7 Han-Liang Hu Taiwan Project Management Association,TPMA Refresher Course for Listed Directors - Board of Directors vs.
Management Team		 3
Director 2024/6/13 Han-Liang Hu Taiwan Project Management Association,TPMA Refresher Course for Listed Directors - Succession team building and
talent development		 3
Chairman 2024/8/8 Hung-Liang
Hsieh		 Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Independent
director		 2024/8/8 Cheng-Li
Yang		 Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Independent
director		 2024/8/8 Sung-Jen
Fang		 Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Independent
director		 2024/8/8 Chuan-Shin
Shui		 Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Independent
director		 2024/8/8 Chun-Chi Lin Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Director 2024/8/8 Chung-Ho
Shaw		 Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Director 2024/8/8 Ming-Chi Hsu Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Director 2024/8/8 Wei-Lin Hsieh Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience management 3
Independent
director		 2024/8/15 Chuan-Shin
Shui		 Taiwan Insurance Institute Sustainable development of enterprises and international trends in
corporategovernance		 3
Director 2024/9/30 Ming-Chi Hsu Taiwan Stock Exchange,TWSE Strengthening Taiwan Capital Market Summit 3
Independent 2024/10/4 Chuan-Shin The Chinese National Association of Industry and Introduction to corporate law, corporate governance and taxation 3

49

Date Name Organizer Course name Number of hours Date
director Shui Commerce, Taiwan (CNAIC) knowledge that senior personnel should understand
Chairman 2024/11/1 Hung-Liang
Hsieh		 Taiwan Corporate Governance
Association,TCGA		 Performance evaluation practices related to corporate "ESG
sustainability" and "risk management"		 3
Independent
director
2024/11/1		 Chuan-Shin
Shui
Taiwan Corporate Governance
Association,TCGA		 Performance evaluation practices related to corporate "ESG
sustainability" and "risk management"		 3
Director 2024/11/1 Chung-Ho
Shaw		 Taiwan Corporate Governance
Association,TCGA		 Performance evaluation practices related to corporate "ESG
sustainability" and "risk management"		 3
Director 2024/11/1 Ming-Chi
Hsu		 Taiwan Corporate Governance
Association,TCGA		 Performance evaluation practices related to corporate "ESG
sustainability" and "risk management"		 3
Director 2024/11/1 Wei-Lin
Hsieh		 Taiwan Corporate Governance
Association,TCGA		 Performance evaluation practices related to corporate "ESG
sustainability" and "risk management"		 3

50

(IV) Composition, duties, and operation of the Remuneration Committee

1. Information on members of the Remuneration Committee April 24, 2025

Criteria Number of concurrent duty as a

Professional qualifications and experience
Independence Remuneration Committee
(Note)
Position Name member at apublic company
Convener
Independent director		 Chun-Chi, Lin Have work experience in the area of commerce
necessary for the business of the company		 1. The person, his spouse, or his second-degree
relatives do not serve as directors, supervisors or
employees of the Company.
2. The person, his spouse, or his second-degree
relatives do not hold any of the company’s shares
under their number or under another person’s
name. If any of them do, disclose the
shareholding percentage.
3. Not a director, supervisor, or employee of a
company which has a specific relationship with
the Company.
4. Not providing business, legal, financial,
accounting and other services to the Company or
other associates.
5. Circumstances specified in the various
subparagraphs of Article 30 of the Company Act
do not exist.
6. Complying with Article 6 of the Regulations
Governing the Appointment and Exercise of
Powers by the Remuneration Committee of a
Company Whose Stock is Listed on the Taiwan
Stock Exchange or the Taipei Exchange.
0
Remuneration
Committee member
Independent director		 Cheng-Li Yang Have work experience in the area of commerce,
finance, or accounting necessary for the business
of the company.
Used to a member of the remuneration committee
of Ace Pillar Co., Ltd.; currently serving as a
member of the remuneration committee of Giga-
Byte Technology Co., Ltd.		 1
Remuneration
Committee member
Independent director		 Shui-Chuan, Shin Have work experience in the area of commerce
necessary for the business of the company		 0

Note: For the experience of members of the Remuneration Committee, refer to Directors Academic and Career Qualifications on p.6~p.9.

51

  1. Duties of the Remuneration Committee.

Duties of the Remuneration Committee include implementing corporate governance and bettering the remuneration system for directors and managers. The committee mainly formulates and regularly reviews the policy, system, standard, and structure of the remuneration and performance evaluation of directors and managers.

  1. Information on the operation of the Remuneration Committee

The Company’s Remuneration Committee has 3 members. Members of the current. Remuneration Committee will be in office from June 14, 2024 through June 13, 2027. During 2024 and 2025 up to the annual report publication date, the Remuneration Committee held a total of 3 meetings (A), with the qualifications and attendant of member as follows:

Title Name Number of attendance
inperson(B)		 Number of attendance
by proxy		 Attendance rate (%) (B/A) Remarks
Convener Jyan-Bang Chen 1 0 100% Term expired on June 14,
2024; 1 meetings required
Convener Chun-Chi, Lin 2 0 100% In office from June 14,
2024 till now
Committee
member		 Sung-Jen Fang 1 0 100% Term expired on June 14,
2024; 1 meetings required
Committee
member		 Cheng-Li Yang 3 0 100% In office from Aug. 4, 2015
till now
Committee
member		 Shui-Chuan, Shin 2 0 100% In office from June 14,
2024 till now
Other matters to be recorded:
I.
If the board of directors does not adopt or amend the recommendations from the Remuneration Committee, it shall clarify the date, session,
proposal content and resolution of the board and how the Company handles the recommendations of the Committee (such as that the
remuneration approved by the board is better than what the Committee recommended, and the differences and reasons should be clarified):
None
II.
If the Remuneration Committee members have objections or reservations and there are records or written statements from the meetings, the
date, term, proposal content, opinions of all members and the handling of their opinions shall be clear: None

52

  1. The discussions and resolutions of the Remuneration Committee in the most recent year are as follows:
Date Proposal Content and Follow-up
Implementation		 Resolution Company's handling of the
remuneration committee's opinions
6th meeting of the
5th session
Mar.10, 2024		 Proposal on employee salary adjustment for
2024.		 All committee member present
approved the proposal as proposed.		 The Company carried out employee
salary adjustment as approved.
1th meeting of the
6th session
Dec. 13, 2024		 Proposal on employee salary adjustment for
2025.		 All committee member present
approved the proposal as proposed.		 The Company carried out employee
salary adjustment as approved.
2th meeting of the
6th session
Feb. 27, 2025		 1. Proposal on employee incentive plan for
2025.		 All committee member present
approved the proposal as proposed.		 The Company carried out employee
incentive plan as approved
2. Proposal on employee remuneration and
director remuneration for 2024.
All committee member present
approved the proposal as proposed.		 Submitted to the Board of Directors
and approved by all of the directors
present as proposed.
3. Amendation to the Company’s “Articles
of Incorporation”		 All committee member present
approved the proposal as proposed.		 Submitted to the Board of Directors
and approved by all of the directors
present asproposed.

53

(V) Composition, duties, and operation of the Sustainable Development Committee

Criteria Number of concurrent duty as a

Professional qualifications and experience
Independence Remuneration Committee
(Note)
Position Name member at apublic company
Convener
Chairman		 Hung-Liang Hsieh Have work experience in the area of commerce
necessary for the business of the company		 1. The person, his spouse, or his second-degree
relatives do not serve as directors, supervisors or
employees of the Company.
2. The person, his spouse, or his second-degree
relatives do not hold any of the company’s shares
under their number or under another person’s
name. If any of them do, disclose the
shareholding percentage.
3. Not a director, supervisor, or employee of a
company which has a specific relationship with
the Company.
4. Not providing business, legal, financial,
accounting and other services to the Company or
other associates.
7. Circumstances specified in the various
subparagraphs of Article 30 of the Company Act
do not exist.
8. Complying with Article 6 of the Regulations
Governing the Appointment and Exercise of
Powers by the Remuneration Committee of a
Company Whose Stock is Listed on the Taiwan
Stock Exchange or the Taipei Exchange.		 0
Sustainability
Committee member
Independent director		 Shui-Chuan, Shin Have work experience in the area of commerce,
finance, or accounting necessary for the business
of the company.
0
Sustainability
Committee member
Independent director		 Chun-Chi, Lin Have work experience in the area of commerce
necessary for the business of the company		 0
Sustainability
Committee member
Director		 Ming-Chi, Hsu Have work experience in the area of commerce
necessary for the business of the company		 0

Note: For the experience of members of the Sustainable Development Committee, refer to Directors Academic and Career Qualifications on p.6~p.9.

54

  1. Duties of the Sustainable Development Committee

  2. The Company established a " Sustainable Development Committee " in November 2023 and reports regularly to the Board of Directors every year. The Sustainable Development Committee aims to implement the corporate sustainable development concept, actively promote the corporate governance function of sustainable management and corporate social responsibility, and achieve the goal of sustainable management. Its responsibilities are as follows

  3. A. Formulate the Company's sustainable development policy.

  4. B. Formulate the Company’s sustainability governance, integrity management, environmental and social goals, strategies, and implementation plans.

  5. C. Review, track, and revise the implementation status and effectiveness of the Company's sustainable development, and report to the board of directors regularly.

  6. D. Focus on and respond to the issues of concern to all stakeholders, including shareholders, customers, suppliers, employees, government, nonprofit organizations, communities, and the media.

  7. E. Review the Company's corporate sustainability report.

  8. Information on the operation of the Sustainable Development Committee

The Company’s Sustainable Development Committee has 4 members. Members of the current Sustainable Development Committee will be in office from June 14 , 2024 through June 13, 2027. During 2024 and 2025 up to the annual report publication date, the Sustainable Development Committee held a total of 2 meetings (A), with the qualifications and attendant of member as follows:

Title Name Number of attendance
inperson(B)		 Number of attendance
by proxy		 Attendance rate (%) (B/A) Remarks
Convener Hung-Liang Hsieh 2 0 100% In office from Nov. 3, 2023
till now
Committee
member		 Shui-Chuan, Shin 2 0 100% In office from June 14,
2024 till now
Committee
member		 Chun-Chi, Lin 2 0 100% In office from June 14,
2024 till now
Committee
member		 Ming-Chi, Hsu 3 0 100% In office from Nov. 3, 2023
till now

55

Title Name Number of attendance
inperson(B)		 Number of attendance
by proxy		 Attendance rate (%) (B/A) Remarks
Other matters to be recorded:
III. If the board of directors does not adopt or amend the recommendations from the Sustainable Development Committee, it shall clarify the
date, session, proposal content and resolution of the board and how the Company handles the Sustainability Development of the Committee :
None
IV. If the Sustainable Development Committee members have objections or reservations and there are records or written statements from the
meetings, the date, term, proposal content, opinions of all members and the handling of their opinions shall be clear: None

4. The discussions and resolutions of the Sustainable Development Committee in the most recent year are as follows:

Date Proposal Content and Follow-up Implementation Resolution Company's handling of the Sustainable
Development Committees’opinions
1th meeting of the
2th session
Aug. 8, 2024		 1.Report on the implementation of the
Company's 2023 Sustainability Report
2. Proposal for the Establishment of the Company's
"Sustainability Report Preparation and Assurance
OperatingProcedures"		 All committee member present
approved the proposal as
proposed.		 Submitted to the Board of Directors and
approved by all of the directors present as
proposed.
2th meeting of the
2th session
Feb. 27, 2025		 1. 2024 Corporate Integrity and Sustainable
Development Report.
2. Report on the Company's greenhouse gas inventory
and verification timeline." in alignment with the
Financial Supervisory Commission's 'Roadmap for
Sustainable Development of Listed Companies,'
3. Progress report on the preparation of the 2024
Sustainability Report.
4. The Company plans to conduct the greenhouse gas
verification (ISO 14064-1) for the Hukou Plant in
March and will begin arranging the planning for
the consolidated financial statement parent and
subsidiary inventory after April.		 All committee member present
approved the proposal as
proposed.		 The Company reported to the Board of
Directors
on
the
above
sustainable
development matters.

56

(VI) Fulfillment of Sustainable Development; Differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies; and Causes for Such Differences.

Evaluation Items The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes No Summary description
I. Has the Company established a governance
framework for promoting sustainable
development, and established an exclusively (or
concurrently) dedicated unit to be in charge of
promoting sustainable development? Has the
board of directors authorized senior management
to handle related matters under the supervision of
the board?
V		 (I.) The company has established a sustainable development team
member under the Sustainable Development Committee to take
charge of formulating sustainable development policy and system.
Based on the principle of materiality, the Company conduct risk
evaluation on environmental, social and corporate governance issues
related to the Company’s operation and implementation status on to
the board of directors every year that the latest report was made on
Nov. 1, 2024 (details in Note 2 p.67), For detail, refer to the
Company’s website athttp://www.scientech.com.tw.
(II.) Upholding the ideal of “taking from society, giving back to society”,
the Company has established a charity platform, through which the
Company fulfils its corporate social responsibilities by means of
donation, charity sale, and volunteer services. Instances in this regard
include the group-buy platform that aims to help farmers, food
donation, uniform invoice donation, used things donation, volunteer
services, and blood donation; in doing so, we have contributed our
humble efforts to the environment and society where we grew up. In
2016, the Company selected a charity ambassador to commend the
ambassador’s enthusiastic participation in charity events. The
Company participates in various activities every year to fulfill its
corporate social responsibilities, and reports to the Board of Directors
on Feb. 27, 2025 on the results of its efforts invested in environmental
protection, community engagement, social contribution, social
service, charity events, consumer rights, human rights, and safety and
health (details in Note 1 p. 64 ~ 67).
(III.) The Sustainable Development Committee listens to reports from the
management team every year. The Sustainable Development
Committee evaluates the possibility of success of these strategies and
reports to the Board of Directors on the implementation of sustainable
development in the current year. Based on the Sustainability
Committee's report,the board of directors urges the CEO to review		 None

57

Evaluation Items The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes Summary description
No
the progress of the strategies and encourages the management team to
make adjustments.
II. Has the Company conducted risk assessments
on environmental, social and corporate
governance issues related to the Company's
operations in accordance with the materiality
principle, and formulated relevant risk
management policies and strategies?		 V II. The Company conducts risk assessments on the environmental, social,
and corporate governance issues related to its operations in accordance
with the principle of materiality, and formulates the motto “Comply
with government laws and customer requirements; implement pollution
prevention, energy conservation, and carbon reduction; improve work
safety and health awareness; and conduct a review and make
continuous improvement to reduce risks,” which is announced across
the Group, aiming to implement environmental protection, safety and
health,and reduce related operational risks(Note 2 onp.67).		 None
III. Environmental Issues
(I) Has the Company set up an appropriate
environmental management system based on
the characteristics of its industry?		 V (I)
Having a factory in Hsinchu Industrial Park, the Company acted by
the environmental law and commissioned a licensed waste
management company to handle the factory’s waste. As required by
the Regulations Governing the Implementation of Labor Work
Environment Monitoring, the Company commissions a qualified
work environment monitoring agency to conduct testing for carbon
dioxide, organic solvents, specific chemical substances, noise, etc.
every six months. The Company has formulated its environmental,
social, and health (ESH) policy and energy policy, the main content
of which includes: 1. Comply with government laws and customer
requirements; 2. implement pollution prevention, energy
conservation, and carbon reduction; 3. improve work safety and
health awareness; and 4. conduct a review and make continuous
improvement to reduce risks. The Company has obtained the
“Environmental Management System” (ISO14001: 2015) and
“Occupational Safetyand Health Management System”(ISO		 None

58

Evaluation Items The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes Summary description
No
45001:2018) certification. The certification validity period is from
Apr. 30,2025 to Apr. 30,2028.
(II) Is the Company committed to improvie
energy efficiency and to the use of renewable
materials with low environmental impact?		 V (II) The Company values the recovery of waste water, waste gas, poisonous
substances, and solvents; is committed to improving the utilization
efficiency of various resources; heavily invests in environmental
protection equipment; cooperates with the Environmental Protection
Agency's garbage sorting and recycling policy to reduce the amount of
waste in the factory, in order to achieve the goal of recycling and reuse;
and formulates and adds the Regulations Governing the Monitoring of
Hazardous Substances and Pollution to the ISO management system
documentation system, so as to comply with regulations, fulfill the
commitments of the Company's ESH policy, and lower the
environmental impact.		 None
(III) Does the Company evaluate the potential risks
and opportunities of climate change to the
Company now and in the future, and take
corresponding measures to respond to climate
related issues?		 V (III) The Company has an Occupational Safety Office directly under the
President which is in charge of ESH management. In addition, the
Company has a factory in Hsinchu Industrial Park; the factory has
dedicated and licensed occupational safety and environmental officers,
who work with colleagues therein to implement environmental tasks as
required by laws and regulations. To cope with the effect of climate
change on the Company’s operations, the Company has formulated
internal regulations for energy conservation, carbon reduction, and
GHG emissions reduction.		 None
(IV) Does the Company make statistics on
greenhouse gas emissions, water
consumption, and total weight of waste for the
past two years, and formulate policies for
greenhouse gas emissions reduction, water		 V (IV) The Company compiles statistics on GHG emissions, water
consumption, and total weight of waste for 2023 and 2024 (please
refer to the Company's website athttp://www.scientech.com.tw), and
has passed the ISO14001 Certification carried out by SGS. The
Company has formulated the motto “Comply with government laws
and customer requirements;implementpollutionprevention,energy		 None

59

Evaluation Items The State of Operation The State of Operation The State of Operation The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes
No Summary description
consumption reduction, or other waste
management?		 conservation, and carbon reduction; improve work safety and health
awareness; and conduct a review and make continuous improvement
to reduce risks” as its ESH policy on energy conservation, carbon
reduction, GHG emissions reduction, water consumption reduction,
and management of other waste. The Company has an Occupational
Safety Office directly under the CEO which is in charge of ESH
management. In addition, the Company has a factory in Hsinchu
Industrial Park; the factory has dedicated and licensed occupational
safety and environmental officers, who work with colleagues therein
to implement environmental tasks as required by laws and regulations.
To cope with the effect of climate change on the Company’s
operations, the Company has formulated internal regulations for
energyconservation,carbon reduction,and GHG emissions reduction.
Year
(tonCO2e)
GHG
Emissions
Category I
Emissions
Category II
Emissions
2023
10,410.185
886.5829
9,523.6020
2024(Note)
10,517.875
227.0226
10,290.8520
Note:2024 data, not yet SGS verified
Water consumption in 2023 and 2024 is 377,590 metric tons and
443,520 metric tons. The disclosure of hazardous & non-hazardous
waste in the past two years is as follows. In the past two years, the
waste recyclingrate was 87.5% and 83.6%.
Year
(ton)
total weight of
waste
General waste
Hazardous
waste
2023
329.19
314.10
15.09
2024
371.01
353.74
17.27
Year
(ton)		 total weight of
waste		 General waste Hazardous
waste
2023 329.19 314.10 15.09
2024 371.01 353.74 17.27
IV. Social Issues

60

Evaluation Items The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes Summary description
No
(I) Has the company formulated relevant
management policies and procedures in
accordance with relevant laws and regulations
as well as the International Bill of Human
Rights?		 V (I) To protect the basic human rights of employees, customers, and
stakeholders, the Company disseminates information internally and
formulates relevant regulations to ensure that every employee is treated
fairly, humanely, and with dignity. Such regulations include the “Work
Rules”, “Corporate Social Responsibility Best Practice Principles”, and
“Regulations for Prevention, Correction, Complaint and Punishment of
Sexual Harassment at Workplace”. In addition, the Company also
makes available a complaint channel, so as to protect the rights and
interests of employees, customers, and stakeholders. The Company has
never employed any child labor. In addition, the Company has
formulated the Work Rules according to the Act of Gender Equality in
Employment and Employment Service Act, held regular labor-
management meetings, and required suppliers to comply with the
relevant provisions of RBA (please refer to the Company's website at
http://www.scientech.com.tw). By complying with relevant labor laws
and regulations, the Company ensures the legitimate rights and interests
of employees. The personnel rules formulated by the Company are in
line with the Labor Standards Act. The Company protects employee
rights by abiding by the “work rules” and the Labor Standards Act. All
matters related to employees are handled to a dedicatedperson.		 None
(II) Has the Company established and implemented
reasonable employee welfare measures
(including remuneration, vacation, and other
benefits) and appropriately reflected the
business performance or results in the
employee remuneration?		 V (II) The Company has formulated and implemented reasonable employee
welfare measures (see p.119 ~p.121 for details). Employee regeneration
includes base salary, rewards, and employee bonus. On the systematic
level, the management reflects the Company's operating performance
and employee personal performance in employees’ remuneration.		 None
(III) Does the Company provide employees with a
safe and healthy working environment, and
related education?		 V (III) The Company has an Occupational Safety Office, a dedicated unit
responsible for offering employees with a safe and healthy working
environment. In addition, as required by the Regulations Governing		 None

61

Evaluation Items The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes Summary description
No
the Implementation of Labor Work Environment Monitoring, the
office commissions a qualified work environment monitoring agency
to monitor the work environment by testing for carbon dioxide,
organic solvents, specific chemical substances, noise, etc. every six
months. Any anomaly, if indicated by the testing results, is
immediately corrected and improved to ensure the health of operators.
The Company also announces and disseminate information on safety
and health to employees.
The Company has obtained "Environmental Management System"
(ISO 14001:2015) and "Occupational Health and Safety
Management System" (ISO 45001:2018) certifications. The validity
period for both certifications is from April 30, 2025 to April 30,
2028. Regarding Company's employee personal safety and work
environment protection measures and the implementation status,
please refer to p. 123 in details.
During the current year, the Company experienced one occupational
accident and one injury, accounting for 0.13% of the total number of
employees. The incident occurred due to the April 3rd earthquake,
which caused objects to fall and injure an employee's toe. The
subsequent prevention measure is to limit the height of stacking
items to avoid injuries from falling.
Number of fire incidents, number of casualties, and the casualty rate
as a percentage of the total number of employees for our company
this year, as well as relevant improvement measures in response to
fires: None
(III) Has the Company established an effective
career development training program for
employees?		 V (IV) The Company provides relevant internal and external professional
education and training to hone employees' career skills. The Company
also encourages employees to assess their own interests, skills, values,
and goals, and to communicate their career intentions with managers
to developtheir careerplan.		 None
(V) Does the company comply with the relevant
laws and international standards with regards
to customer health and safety,customer		 V (V) The Company’s products are labeled in the manner prescribed by
applicable laws and regulations as well as international standards. To
protect consumers’ rights andprovide a channel for effective		 None

62

Evaluation Items The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes Summary description
No
privacy, and marketing and labeling of
products and services, and implement
consumerprotection andgrievancepolicies?		 communication with stakeholders, the Company designates its
spokesperson to be the sole communication channel, through which
complaints are filed and communication is carried out.
(VI) Has the company formulated supplier
management policies requiring suppliers to
comply with relevant regulations on issues
such as environmental protection,
occupational safety and health, or labor rights,
and what is the status of their
implementation?		 V (VI) The Company has formulated its “Supplier Management Procedures”
and “Procurement Management Procedures”, which are the principles
for supplier management. In addition to providing a safe working
environment for employees, the Company, along with suppliers, is
also committed to improving environmental, safety, and health
standards and fulfilling corporate social responsibilities. The
Company has formulated the motto “Comply with government laws
and customer requirements; implement pollution prevention, energy
conservation, and carbon reduction; improve work safety and health
awareness; and conduct a review and make continuous improvement
to reduce risks” as its ESH policy, which is announced across the
Group, aiming to implement environmental protection and ensure
safety and health. The Company actively communicates with
suppliers to encourage them to broaden and deepen their ESH
management. Meanwhile, suppliers are required to comply with the
relevant provisions of RBA (please refer to the Company's website at
http://www.scientech.com.tw)		 None
V. Has the Company referred to international
reporting standards or guidelines in its
preparation of corporate social responsibility
reports and other reports which disclose the
Company's non-financial information? Does
the company obtain third party assurance or
certification for the reports above?		 V V.
The Company has refered to international reporting standards or
guidelines in its preparation of corporate social responsibility reports
and other reports which disclose its non-financial information, but
has not yet obtained the confidence or assurance opinion from a
third-party verification unit.		 The Company has implemented this
evaluation item, but has not yet
obtained the confidence or assurance
opinion from a third-party
verification unit.

63

The State of Operation Differences between the fulfillment of corporate social responsibility and the Corporate Social Responsibility Evaluation Items Yes No Summary description Best Practice Principles for TWSE/GTSM Listed Companies and the reasons therefor: VI. If the Company has adopted its own sustainable development best practice principles based on the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, please describe any deviation from the principles in the Company’s operations: Having formulated the “Sustainable Development Best Practice Principles” and continuing fulfilling its sustainable development responsibilities, the Company does not find the implementation thereof significantly deviated from the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”. For details, refer to Three - Corporate Governance Report - Status of Implementation of the Company’s Sustainable Development on p.57~p.67 of this annual report. VII. Other important information to facilitate better understanding of the company’s promotion of sustainable development: (I) Environmental protection: The Company deals with all matters related to environmental protection in accordance with relevant environmental laws and regulations. On the environmental protection front, in addition to contracting a licensed waste management company to periodically remove waste, as required by the environmental laws and regulations, the Company also promotes policy on conservation of consumption of water, electricity, paper, etc. inside the Company. in doing so, the Company expects itself to minimize environmental pollution and resource consumption for the Earth. The Company spares no efforts in the development of, and has launched, energy-efficient and environmentally-friendly products. (II) Social engagement, community engagement, social contribution, social service, charity events To care for the society, the Company is committed to R&D and sale of products that meet the customers’ needs while paying attention to align the production environment with environmental protection requirements. In addition, the Company spares no efforts in business administration to give back to shareholders and employees, hoping to create a win-win situation for shareholder, employees, customers, and suppliers. On the charity front, if there is a major natural disaster, the Company will be helpful by organizing monetary donation among employees, hoping to contribute its humble efforts for charitable cause. Over the past years, the Company had donated equipment to National Chung Hsing University and Academia Sinica; donated and sponsored the Merit Scholarship of National Tsing Hua University and Feng Chia University; sponsored religious organizations such as Shandao Temple; sponsored artists such as Fang-Yi Hsu, a dancer, and cultural and arts organizations such as the Kaohsiung Cultural Foundation; sponsored academic institutions such as Taiwan Proteomics Society, Taiwan Society for Mass Spectrometry, The Polymer Society, Taipei, Chinese Chemical Society, Providence University, Taiwan Ceramic Society, National Chung Cheng University, symposium on analytical technologies, The Physical Society of the Republic of China, PSROC, and National Taichung University of Education; and donated to Child Welfare League Foundation R.O.C., Hsiangyuan Memorial Nursery Home, and Taiwan Fund for Children and Families - Changhua. The Company also organizes blood donation events every year, and other charitable events such as charity fair and street sweeping activities within communities and factories. The Company has established a charity platform, through which the Company fulfils its corporate social responsibilities by means of donation, charity sale, and volunteer services. Instances in this regard include the group-buy platform that aims to help farmers, food donation, uniform invoice donation, used things donation, volunteer services, and blood donation; in doing so, we have contributed our humble efforts to the environment and society where we grew up. (III)For the status of implementation of employee rights and employee care, refer to Four. Operational Highlights - V. Labor relations (p.119~p.121). (IV) Human rights: To protect the basic human rights of employees, customers, and stakeholders, the Company disseminates information internally and formulates relevant regulations to ensure that every employee is treated fairly, humanely, and with dignity. Such regulations include the “Work Rules”, “Corporate Social Responsibility Best Practice Principles”, and “Regulations for Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace”. In addition, the Company also makes available a complaint channel, so as to protect the rights and interests of employees, customers, and stakeholders. The Company has never employed any child labor. In

64

Evaluation Items The State of Operation The State of Operation The State of Operation Differences between the fulfillment
of corporate social responsibility and
the Corporate Social Responsibility
Best Practice Principles for
TWSE/GTSM Listed Companies
and the reasons therefor:
Yes
No Summary description
addition, the Company has formulated the Work Rules according to the Act of Gender Equality in Employment and Employment Service Act, held regular labor-management
meetings, and required suppliers to comply with the relevant provisions of RBA (please refer to the Company's website at http://www. scientech.com.tw).
(V) Work-life balance: As required by law, the Company implements the unpaid parental leave system and offers various welfare measures such as family care leave, paternity
leave, period leave, and breast-feeding room; encourages employees to take a leave, provides a medical care center, arranges for a doctor to give diagnosis within the factory,
and offers regular health check; and advocates club activities and encourages employees to exercise, and regularly holds family sports days.
(VI) The Company has purchased related liability insurance for directors and managers.

Note 1: Below are the Company’s charitable achievements:

Upholding the ideal of “taking from society, giving back to society”, the Company has established a charity platform, through which the Company fulfils its corporate social responsibilities by means of donation, charity sale, and volunteer services. Instances in this regard include the groupbuy platform that aims to help farmers, food donation, in-kind donation, uniform invoice donation, used things donation, volunteer services, and blood donation; in doing so, we have contributed our humble efforts to the environment and society where we grew up. Below are the operation of charitable events and the achievements therein up to December 31, 2024.

Donated item Beneficiary Achievement
Donation of inventories
National Chung Hsing University; Academia Sinica; National Taichung University of Education; University of Taipei;
Pingtung Christian Bethany Home; St. Francis Xavier Home for Girls; ZenLight Orphanage; Zenan Homeless Social
Welfare Foundation - Wanhua Station; Yunlin Xinyi Orphanage; House of the Little Angels Kaohsiung; Taiwan Catholic
Church Blue-sky Home; Hualien County Private Aboriginal Children; Christian Mountain Children's Home;
GALILEEFAMILY Foundation;National Sun Yat-sen University;National ChengKungUniversity



NT$43,584,479
Blood donation events Blood donation center 837people;1,292 bags of blood.
Donation of cash Chia Nan University of Pharmacy and Science; National Chung Hsing University; Taiwan Proteomics Society; Taiwan
Society for Mass Spectrometry; The Polymer Society, Taipei; Chinese Chemical Society; Providence University; Taiwan
Ceramic Society; National Chung Cheng University; symposium on analytical technologies; Feng Chia University;
National Sun Yat-sen University; Shandao Temple; Fang-Yi Hsu; Kaohsiung Cultural Foundation; The Physical Society
of the Republic of China, PSROC; Child Welfare League Foundation R.O.C.; TADD; molecular design research club;
Gosh Foundation; Hsinchu County Fire Friends Association; New Taipei City Bethel Whole Person Care Association;
Chung Yi Social Welfare Foundation; Harmony Home Association, Taiwan.; Austrian Commercial Office; Chunghwa
Social Welfare Association; Nantou Renai Children's Home; Silver Grass Cultural and Creative Association; National
Taiwan University Hospital; Federation For World Peace-Taiwan;The Pearls Buck Foundation: National Yilan Senior
High School-OutstandingTalent Scholarship;MackeyMemorial Hospital’s medical service in the rural area. STP Seed
NT$14,952,048

65

Donated item Beneficiary Achievement
Talent Training Program、House of The Little Angels Kaoshiung、Huashan Social Welfare Foundation、Taoyuan
LOHAS Preschool、Taiwan Dream Together Charity Association、Taitung Onesiphorus Children’s Home、World
Vision. National Tainan Science Park Experimental High School;iomedical Annual MeetingorAnnual Biomedical
Conference;2024 Women's Boxer Chen Nien-chin; Hualien Hongye Great Beasts (Baseball) Team; 2024 Sponsorship
of Performances at Japan's Suntory Hall; 2024 Life and Character Education Program for Disadvantaged Children in
Taitung;2024 CompanyBeach CleanupEvent;PaperWindmill Theatre 368 Townships Children's Arts Project
Donation of food Zenan Homeless Social Welfare Foundation - Wanhua Station; Andrew Charity Association; Moning Light Christian
Association; Hualien County Private Aboriginal Children; VUVU Org.; Pingtung Wandan Houchun Village Community
Development Association; St. Francis Xavier Girls Home - Miaoli; ZenLight Orphanage; Pingtung Christian Bethany
Home; Yunlin Xinyi Orphanage; Harmony Home Association, Taiwan; Christian Salvation Service; House of the Little
Angels Kaohsiung; Taiwan His Hands Christian Home; Yunlin Xinyi Orphanage; Genesis Social Welfare Foundation;
JHF Foundation; Chunghwa Social Welfare Association; Nantou Renai Children's Home;Huashan Social Welfare
Foundation.





Handmade noodles, drinks, fruits,
milk powder, medical equipment,
etc.
in-kind donation Taiwan Fund for Children and Families - Changhua; Free the girls; Taiwan Root Medical Peace Corps; Hong-hua
Foundation; Reindeer Children Home; Taipei City Mental Rehabilitation Family Association; Onesiphorus Children’s
Home; Yude Orphanage; Eden Social Welfare Foundation; ZenLight Orphanage; Yunlin Xinyi Orphanage; Shunde
Cultural Foundation - Shengdao Children's Home; The Garden of Hope Foundation - New Taipei Office & Material Center;
Step 30; White Kite Orphanage; Harmony Home Foundation - Wenshan Women's and Children's Home; Good Shepherd
Social Welfare Foundation; Christian Salvation Service; Ming-te Education and Nursing Institute; The Garden of Hope
Foundation; Nantou County Renai Children's Home; ZenLight Orphanage; LOHAS Preschool; House of the Little Angels
Kaohsiung; Sunshine Social Welfare Foundation; Hsinchu Aiheng Foundation; Zenan Homeless Social Welfare
Foundation; St. Theresa Opportunity Center; Federation For World Peace-Taiwan; The Garden of Hope Foundation -
Tainan Material Center; Huashan Social Welfare Foundation; Huashan Social Welfare Foundation - Xinfeng Love Angel
Station; Catholic Mercy Hospital; Taipei Parents Association of Autism; i-Goods; Hualien County Private Aboriginal
Children; Catholic Mercy Medical Foundation;New Taipei City Toy Bank; Legal Charitable institution Hsin Miao the












Christmas gifts, annual calendars,
monthly calendars, baby supplies,
stationery, used school bags,
second-hand shoes, second-hand
clothes, second-hand bags, used
bras, used books, handmade
soaps, electrical appliances, meals
for the elderly, breakfast
ingredients, COVID-19 Antigen
self-test kit, expiring food, music
CDs and DVDs, food, garbage
bags, laundry detergent,
dishwashing detergent, drying
racks, kettle、diaper、supplies
for elders、baseball pad、charity
food box, Charity New Year's
Eve Dishes, Portable Video
Intubation System…etc.
Disabled Home; Taoyuan City Mentally Disabled Parents Association; World Vision、Taiwan Dream Together Charity
Association. 2024 "Love the Elderly, Love Family Reunion" Charity New Year's Eve Dinner, Taitung Christian Hospital
Charitable/health lecture Colleagues 92 sessions;5,781participants
Communityvisit Minghsin UniversityOf Science And Technologyand CPMAH;National TsingHua UniversityEMBA 3 sessions
Uniform invoice donation Sunshine Social Welfare Foundation Donated monthly
Helping local small
farmers		 Hot Fruit; Wen-Min Organic Agriculture Ecopedagogyfarm; Bai Sian Agricultural Products Co., Ltd.; Laofuzi Farm;
Laoheji Farm; Xiangying Organic Farm; Guanren Woyao Farm; Dingjia Bee Farm; Guaranteed Liability Pingtung County
Calamondin Production Cooperative;ChenyingFarm;YuanxiangNatural Ecological Farm;Lvyuan Organic Farm;

90 times of group buying for
Taiwan locat small farmers

66

Donated item Beneficiary Achievement
Yuanzhiguo Farm; SHUI LING Organic farm; Tainan-Dafeng Farm- Guiren Farm; Earth Friend Organic Farm; Changhua
ALUMI farm.
Charity events “Discovering the beauty of Taiwan” photo contest; “Power conservation expert” power-saving campaign; “Greening the
Earth” - let's plant trees together! Scientech Charity Day - “Home delivery of warmth to community elders; call for
materials”; Scientech 2020 “Deliver warmth to remote village - call for Christmas gift in a shoe box”; Huashan “Love the
elderly, love reunion” Caring New Year dishes; World Peace Council - Rescue children in crisis; Warmth delivery to
remote villages in 2021; Call for Christmas gift in a shoe box; Scinetech Volunteers for sorting out the used shoe; Scientech
x Huashan “Warmth in May, Love the elderly”、Basketball plan – Hualien-Taitung Basketball league prize collection、
Love food boxes helpl poor children avoid hunger、Donation for the baseball pads、Warmth delivery to remote villages
in 2023, Christmas gift collection、Used toys collection and donation、Free the girls “Second-hand underwear collection”、
Used shoes collected for Kenya, Africa. Baby Diaper Donation, Material Collection & Donation to Support Local Seniors
in Hukou and Xinfeng, 2024 Love Food Boxes: Helping Underprivileged Children Not Go Hungry", 2024 Sending Warmth
to Rural Areas: Christmas Gift Collection. Ocean CleanupBeach Event, TSMC Intergenerational CharityEvent









53 sessions
Occupational Safety
and healthpropaganda		 All employees 34 times
Traffic Safety
propaganda		 All employees 24 times
Home environmental
protection		 All employees 36 times
Health Tips All employees 36 times
Health and wellness
activities		 All employees 13 times
Satisfaction survey All employees 1 time
EHS Questionnaire
Survey		 All employees 1 time

Note 2: The Company has conducted risk assessments on environmental, social, and corporate governance issues related to the Company's operations in accordance with the materiality principle, formulated relevant risk management policies and strategies, and reported to the Board of Directors on November 1, 2024.

Material issue Risk evaluation Item Risk management strategy
Environment Environmental protection The Company is committed to environmental protection. In order to reduce environmental impact, the Company takes the following
actions:
1. Implement the ISO 14001 environmental management system and formulate target management plans every year.
2. Continue to promote waste reduction measures, implement pollution prevention, increase recycling rates, and move towards a

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Material issue Risk evaluation Item Risk management strategy
circular economy.
3. Cooperate with the government’s power saving measures (electricity saving >1% per year)
4. Faced with the issue of climate change, the Company faces the impact of greenhouse gases on the world and our industry,
supporting the competent authorities in promoting 2050 net-zero carbon emissions, cooperating with the carbon neutrality required
by stakeholders, and continue to formulate carbon reduction strategies.
5. In the process of new product development, sustainable issues such as energy saving, green products, packaging material reduction,
circular economy… etc. are considered and introduced.
Social Occupational safety and
health (OSH)		 The Company is committed to providing a safe and friendly workplace for colleagues, maintaining colleagues' health, and complying
with domestic laws and regulations.
The Company has obtained ISO 45001 occupational safety and health management system certification. The Company regularly
understands the needs and expectations of stakeholders every year, and conducts hazard identification, opportunity and risk
assessment. In addition to setting targets and tracking improvements for major risks, the Company also looks for improvement
opportunities. Continuously improve and manage risks.

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(VII) Ethical Corporate Management – Implementation Status and Deviations from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons

Differences from the Ethical
The State of Operation Corporate Management Best
Evaluation Items Practice Principles for
TWSE/TPEx Listed
Yes No Summary description Companies and the reasons
for the differences
I.Formulate ethical corporate management policy and plan
(I) Does the company have an ethical corporate
management policy approved by its Board of
Directors, and bylaws and publicly available
documents addressing its corporate conduct and
ethics policy and measures, and commitment
regarding implementation of such policy from
the Board of Directors and the top management
team?		 V (I) The Company has formulated its “Codes of Ethical Conduct for Directors and
Managers”, “Regulations for Prevention of Insider Trading”, “Ethical Corporate
Management Best Practice Principles”, and “Regulations for Dealing with
Reporting of Illegal, Unethical, or Dishonest Conduct”. Upholding the ideal of
integrity, transparency, and accountability, the Company has also formulated its
ethical corporate management policy, which prohibits directors, managers, and
employees from engaging in unethical conduct and demands that all employees,
when performing their duties, be honest, capable, and fair-minded and comply
with government laws and regulations. The Board of Directors and the top
management also fully understand, and strictly abide by, the said regulations
andpolicy.		 None
(II) Has the Company established a risk assessment
mechanism against unethical conduct, analyzed
and assessed on a regular basis business
activities within their business scope which are
at a higher risk of being involved in unethical
conduct, and established prevention programs
accordingly which at least cover the prevention
measures against the conducts listed in
Paragraph 2, Article 7 of the Ethical Corporate
Management Best Practice Principles for
TWSE/GTSM Listed Companies?		 V (II) The Company has formulated the “Codes of Ethical Conduct for Directors and
Managers”, “Regulations for Prevention of Insider Trading”, “Ethical
Corporate Management Best Practice Principles”, and “Regulations for Dealing
with Reporting of Illegal, Unethical, or Dishonest Conduct”, by which the
Company formulates its ethical corporate management policy and publicize
such policy to employees. The Company will have the Audit Office regularly
analyze the operating activities within the Company’s business scope that have
higher unethical risk.		 None

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Differences from the Ethical
The State of Operation Corporate Management Best
Evaluation Items Practice Principles for
TWSE/TPEx Listed
Yes No Summary description Companies and the reasons
for the differences
(III) Does the company clearly set out the operating
procedures, behavior guidelines, and
punishment and appeal system for violations in
the unethical conduct prevention program,
implement it, and regularly review and revise
the plan?		 V (III) To implement the Company’s Ethical Corporate Management Best Practice
Principles, the Company has established an effective accounting system and
internal control system, which are regularly reviewed and modified to ensure
the effectiveness of their design and implementation. In addition, the Company
has also formulated the “Ethical Corporate Management Best Practice
Principles” and “Codes of Ethical Conduct for Directors and Managers”,
which state that directors or managers in violation of the code of ethical
conduct will be subject to the disciplinary measures set out therein.
Meanwhile, “ethics and pragmatism” are promoted as the foundation of the
Company's business philosophy in its annual meeting and executive meeting.
The “Regulations for Prevention of Insider Trading” and “Regulations for
Dealing with Reporting of Illegal, Unethical, or Dishonest Conduct” set out a
disciplinarysystem and agrievance filingsystem, and are fullyimplemented.		 None
II. The implementation of ethical corporate management
(I) Does the company assess the ethics records of
whom it has business relationship with and
include business conduct and ethics related
clauses in the business contracts?		 V (I) Before trading with major customers, the Company assesses their legitimacy
and reviews their credit record to avoid trading with an unethical counterparty.
Article 11: Ethical Obligation of the Work Rules also stipulates that employee
be honest and not take bribery or tolerate illegal lobbying. According to
applicable internal regulations, if a transaction counterparty or a partner is found
to engage in unethical conduct, the Company shall immediately cease the
business relationship with them and put them on the blacklist, so as to
implement the Company’s ethical corporate managementpolicy.		 None
(II) Has the company set up a dedicated unit to
promote ethical corporate management under
the board of directors, and does it regularly (at
least once a year) report to the board of directors
on its ethical corporate management policy and
V		 (II) The Company’s Chairman's Office regularly reports to the audit committee and
the board of directors every year to promote the implementation of corporate
integrity management, which the latest report was made on Feb 27, 2025. The
Company has formulated the “Ethical Corporate Management Best Practice
Principles”, “Regulations for Prevention of Insider Trading”, and “Regulations
for Dealingwith Reportingof Illegal, Unethical, or Dishonest Conduct”, and		 None

70

Differences from the Ethical
The State of Operation Corporate Management Best
Evaluation Items Practice Principles for
TWSE/TPEx Listed
Yes No Summary description Companies and the reasons
for the differences
program to prevent unethical conduct and
monitor their implementation?		 established a reporting system, disciplinary system, and complaint filing
system, so as to implement the ethical corporate management policy.
The implementation of ethical corporate management in 2024 includes
(1) Education and training (including trainings for new employees that total 1,984
participants and 4,306 hours per month; such training courses include ethical
corporate management; business secret protection; information security policy;
intellectual property management policy; prevention of workplace
violence/sexual harassment; labor safety education and training; and ESH
policies.
(2)Director Training Course: Corporate Governance and Prevention of Insider
Trading Laws and Regulations
(3)The company established a reporting system and complaint filing channels, etc.
(for details, visit the Company’s website athttp://www.scientech.com.tw.
There was no unethical conduct found in 2024.
(4.) In 2024, the course “Ethical Corporate Management Best Practice Principles
and Illegal Infringement at Workplace” was given online to ensure that all
employees are aware of the Company’s ethical corporate management policy
and philosophy. Internal training courses include anti-corruption at workplace,
Ethical Corporate Management Best Practice Principles at workplace
(including prevention of insider trading), and illegal infringement at
workplace, totaling1,395.5 hours,participated by775people.
(II) Does the Company establish policies to
prevent conflict of interests, provide
appropriate communication and complaint
channels and implement such policies
properly?		 V (III) Employees aware of any conflict of interest may report to either their
immediate supervisor, or to the top management by phone or email.		 None

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Differences from the Ethical
The State of Operation Corporate Management Best
Evaluation Items Practice Principles for
TWSE/TPEx Listed
Yes No Summary description Companies and the reasons
for the differences
(IV) Does the company have effective accounting
and internal control systems in place to enforce
ethical corporate management? Does the
internal audit unit follow the results of
unethical conduct risk assessments and devise
audit plans to audit compliance with the
systems to prevent unethical conduct or hire
outside accountants toperform the audits?
V		 (IV) The Company’s Regulations Governing Procedure for Board of Directors
Meetings stipulate interest recusal. As a result, the Company’s directors recuse
themselves from voting of a motion if they are an interest party to the motion.
The employee complaint filing channels of the Company are fairly smooth.
Employees may directly lodge their complaints, or may do so via their
immediate supervisor.		 None
(V) Does the Company provide internal and
external ethical conduct training programs on a
regular basis?
V		 (V) The Company has set up an effective accounting system and internal control
system, and regularly reviews and revises them. In addition, the Company also
has dedicated audit personnel, who are responsible for regularly auditing the
accounting systems and the internal control system and proposing suggestions
for improvement to ensure the continuous effectiveness of the design and
implementation of the systems, and for preparing an audit report and
submitting it to the Audit Committee members and the Board of Directors. For
details of internal and external education and trainings, refer to
p.49+p.74+p.119；		 None
III. The operation of the Company's whistleblower reportingsystem
(I) Does the Company establish specific
whistleblowing and reward procedures, set up
conveniently accessible whistleblowing
channels and designate responsible individuals
to handle the complaints received?		 V (I) The Company has set up the “Regulations for Dealing with Reporting of Illegal,
Unethical, or Dishonest Conduct” and “Employee Opinion Mailbox
Management Procedures”, and“external whistleblowing channels and internal
whistleblowing channels” aswell as an employee mailbox. Employees may
report any misconduct or file their complaints, either directly or via their
immediate supervisor. Misconduct reported and complaints lodged will be dealt
with bythe various responsible units.		 None

72

Differences from the Ethical
The State of Operation Corporate Management Best
Evaluation Items Practice Principles for
TWSE/TPEx Listed
Yes No Summary description Companies and the reasons
for the differences
(II) Does the Company establish standard operating
procedures for investigating the complaints
received, follow-up measures to be adopted, and
the related confidentiality measures after
investigation?
V		 (II) The Company has formulated the “Regulations for Dealing with Reporting of
Illegal, Unethical, or Dishonest Conduct”, which specifies a reporting system
and a confidentiality mechanism. The relevant documents and materials are
regarded as confidential, and all personnel involved in the handling are
responsible for the keepingtheprocess confidential in whole.		 None
(III) Does the Company adopt proper measures to
shield a whistleblower from retaliation for
filing grievances?		 V (III) The Company’s reporting procedures stipulate that the identity of whistle-
blowers be kept confidential. As a result, the whistle-blower won’t be retaliated
for turning anyone in.		 None
IV. Enhance Information Disclosure
(I) Does the Company disclose the content and
implementation results of its Ethical Corporate
Management Best Practice Principles on its
website and the Market Observation Post
System?		 V (I) The Company has a company website, and has disclosed the content and
implementation results of its Ethical Corporate Management Best Practice
Principles on its website and the Market Observation Post System.		 None
V. If the company has adopted its own ethical corporate management best practice principles based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx
Listed Companies, please describe any deviations between the principles and their implementation: The Company has formulated its “Ethical Corporate Management Best
Practice Principles”, the operation of which is not significantlydifferent from the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies”.
VI. Other important information to facilitate a better understanding of the status of operation of the company’s ethical corporate management policies (e.g., the company’s
reviewing and amending of its ethical corporate management best practice principles): The Company has formulated its “Ethical Corporate Management Best Practice
Principles”, the operation of which is not significantlydifferent from the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies”.

(VIII) Other important information conducive to understanding the operations of corporate governance

  1. The Company has formulated the “Regulations for Prevention of Insider Trading” and the “Regulations for Dealing with Reporting of Illegal, Unethical, or Dishonest Conduct”. In addition, the Company has a person dedicate to have the information on the Company’s operations approved by the competent authority within the timeframe and in the manner specified by the competent authority; any material information treatment or

73

disclosure thereafter will be carried out on the same basis. Meanwhile, the Company from time to time informs insiders of any material internal information.

  1. The Company encourages senior executives, and arranges for them, to participate in corporate governance courses. Below is the participation by the Company’s managers in corporate governance courses in 2024 and in the current year up to the publication date of the annual report:
Number of
Title Date Name Organizer Course name
hours
Corporate Governance Officer 2024/3/22 Shu-Chen,Shen Taiwan Stock Exchange,TWSE CDP Taiwanpress conference 3
Corporate Governance Officer 2024/6/6 Shu-Chen,Shen Taiwan Stock Exchange,TWSE Create a new carbon era publicity conference with
sustainable knowledge
7
Corporate Governance Officer 2024/8/8 Shu-Chen,Shen Taiwan Corporate Governance Association , TCGA Enterprise sustainability and resilience
management		 3
Corporate Governance Officer 2024/9/4 Shu-Chen,Shen Taiwan Corporate Governance Association , TCGA Net Zero Carbon Emissions Promotion
Conference		 3
Corporate Governance Officer 2024/10/18 Shu-Chen,Shen Securities & Futures Institute 2024 Annual Insider Trading Prevention
Promotion Conference		 3
Corporate Governance Officer 2024/11/1 Shu-Chen,Shen Taiwan Corporate Governance Association , TCGA Performance evaluation practices related to
corporate "ESG sustainability" and "risk
management"		 3
Corporate Governance Officer 2024/11/22 Shu-Chen,Shen Securities & Futures Institute 2024 Annual Insider Equity Transaction Legal
Compliance Promotion and BriefingSession		 3
Associate vice president,
AccountingDivision		 2024/5/30~
2024/5/31		 Shao-Che,Chuang Accounting Research and Development Foundation Continuing Education Course for Accounting
Supervisors		 12
Manager 2024/7/26、
2024/8/2		 Cheng-Nan,Chen Accounting Research and Development Foundation Accounting Supervisor Continuing Education
Course		 12
Manager of the Audit Office 2024/11/6 Chi Wu Accounting Research and Development Foundation Corporate Fraud Investigation Practice and Case
Analysis		 6
Manager of the Audit Office 2024/12/3 Chi Wu Accounting Research and Development Foundation The latest revision of the "Guidelines for
Establishing Internal Control Systems" and the
practical compliance with internal audit and
internal control laws related to financial report
preparation		 6
Manager 2024/9/30 Judy Yuan Accounting Research and Development Foundation The latest "Annual Report/Sustainability
Information/Financial Report Preparation" related
laws and regulations analysis and internal control
managementpractices		 6

74

Number of
Title Date Name Organizer Course name
hours
Manager 2024/10/1 Judy Yuan Accounting Research and Development Foundation The latest revision of the "Guidelines for
Establishing Internal Control Systems" and the
practical compliance with internal audit and
internal control laws related to financial report
preparation		 6

75

  • (IX) The implementation status of the internal control system should disclose the following matters

  • Statement of internal control : Please refer to the website of Market Observation Post System: corporate governance/internal control/internal control statement announcement https://mopsov.twse.com.tw/mops/web/t06sg20

  • Where a CPA has been hired to carry out a special audit of the internal control system, furnish the CPA audit report: None.

  • (X) Material resolutions of a shareholders meeting and a board of directors meeting during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report.

In 2024 up to the publication date of this annual report, the Company has held 1 General Shareholders’ Meeting and 8 Board of Directors meetings, the major resolutions of which are as follows:

Meeting Date Motion content
Shareholders’
meeting		 June 14, 2024 I. Acceptance
1. Subject Matter: The Company’s 2023 Business Report and Financial Statements
(includingthe Consolidated Financial Statements), proposed for acceptance.
Resolution: Accepted asproposed through a resolution.
2. Subject Matter: The Company’s Earnings Distribution Proposal for 2023, submitted
for acceptance.
Resolution: The proposal was accepted as proposed through a resolution. The
Company set the ex-dividend date for July 4, 2024, and distributed a cash dividend of
NT$4.0per share on July25,2024.
II. Election :
1. Proposal for the Company's full re-election of the board of directors (including
independent directors)
Resolution: Hung-Liang Hsieh , Chung-Ho Shaw, Han-Liang Hu, Ming-Chi Hsu and
Wei-Lin Hsieh were elected as regular directors; Cheng-Li Yang, Shui-Chuan Shin,
Chun-Chi Lin and Sung-Jen Fang were elected as independent directors. In
accordance with relevant regulations, the Company applied to the Ministry of
Economic Affairs for the registration of director changes, which was approved on
July31,2024.
III. Discussion
1. Liftingthe non-competition restrictions for directors
Resolution: Resolved to lift the non-competition restrictions for directors: Hung-
LiangHsieh,Chung-Ho Shaw,Han-LiangHu,Ming-Chi Hsu and Wei-Lin Hsieh
Board of
Directors’
meeting		 17th meeting of
the 10th session
Feb. 29, 2024		 Report item 1: Report on results of the ethical corporate management and sustainable
development endeavor in 2023.
Report item 2: Report on the performance evaluation of the Board of Directors for
2023.
Report item 3: Report on the communication between CPAs and the governance
body.
Report item 4: Report on the Company’s timeline for GHG inventory and verification
in support of the FSC’s “Sustainable Development Roadmap”.
Report item 5: Report to the board of directors the results of its review of whether the
qualifications of independent directors comply with relevant laws and regulations
during their term of office: After review, the Company's three current independent
directors all meet the independence of relevant laws and regulations.
1. Proposal on employee remuneration and director remuneration for 2023.

76

2. Proposal on the Company’s Business Report for 2023.
3. Proposal on the Company’s 2023 final accounting books (including the
consolidated financial statements);
4. Proposal on the Company’s Earnings Distribution Proposal for 2023.
5. Proposal to set the base date and distribution date for the earnings distribution in
cash for 2023.
6. The Company’s directors are fully re-elected. (including independent directors)
7. Proposal to pass the list of candidates for directors (including independent
directors)nominated bythe board of directors.
8. Lifting non-competition restrictions on directors.
9. The Company plans to issue the first domestic unsecured converted corporate
bonds and the second domestic unsecured converted corporate bonds.
10. Proposal to appoint the attesting CPAs for the Company’s 2024 financial
statements.
11. Proposal on loaning of funds to others.
12. Proposal to issue the Company’s 2023 Internal Control System Statement.
13. Revise the Company’s “Regulations Governing Procedure for Board of Directors
Meetings”.
14. Revise the Company’s “Audit Committee Organizational Rules”.
15. Proposal to issue the Company’s 2022 sustainable development report.
16. Proposal on matters related to convening of the 2024 General Shareholders’
Meeting.
Board of
Directors
meeting		 18th meeting of
the 10th session
May 5, 2024		 Report item 1: Directors are encouraged to attend SCIENTECH Shareholders'
Meetingto be held on June 14,2024.
Report item 2: Report on the communication with the stakeholders in 2023.
Report item 3: Report on the results of the 10th Corporate Governance Evaluation.
Report item 4: Report on the Company’s timeline for GHG inventory and
verification in support of the FSC’s “Sustainable Development Roadmap”.
Report item 5: Report on the communication between CPAs and the governance
body.
Board of
Directors
meeting		 1th meeting of
the 11th session
June 14, 2024		 1. Proposal to elect Chairman
2. Proposal on the appointment of the 6thRemuneration Committee.
3. Proposal on the appointment of the 2ndSustainable Development Committee
Board of
Directors
meeting		 2th meeting of
the 11th session
Aug. 8, 2024		 Report item 1.Report on the Company’s timeline for GHG inventory and verification
in support of the FSC’s “Sustainable Development Roadmap”. Please refer to
attachment 4
Report item 2: Report on the communication between CPAs and the governance
body.
1. The Company's 2023 SustainabilityReport.
2. Formulate the Company's "operating procedures for the preparation and assurance
of sustainabilityreports"
3. Proposal to change and modify the bank loans about to mature in order to expand
the room for negotiation for a more favorable interest rate for bank loans and
financingfacilities,thus meetingthe Company’s operatingneeds.
4. Proposal to change and modify the bank loans about to mature in order to expand
the room for negotiation for a more favorable interest rate for bank loans and
financingfacilities,thus meetingthe Company’s operatingneeds.

77

5. The Company intended to extend the endorsement and guarantee provided by the
Company for a short-term, unsecured, general credit bank financing facility of
Scientech Engineering (HongKong)Limited for another oneyear.
6. Proposal to change and modify the bank loans about to mature in order to expand
the room for negotiation for a more favorable interest rate for bank loans and
financingfacilities,thus meetingthe Company’s operatingneeds.
Board of
Directors
meeting		 3th meeting of
the 11th session
Nov. 1, 2024		 Report item 1: Report on the Company’s assessment of the risks pertaining to the
Company’s material operating issues that were identified by referencing the
materiality principles for corporate social responsibilities.
Report item 2: Report on the status of implementation of the Company’s IPR
managementplan.
Report item 3: Report on the Company’s timeline for GHG inventory and verification
in support of the FSC’s “Sustainable Development Roadmap”.
Report item 4: Report on the communication between CPAs and the governance
body.
Report item 5: Report on the liabilityinsurance for the directors and managers.
Report item 6: Report on the disposal of Forward Science Corp.’s shares.
1. Subsidiary Scientech Engineering Corp.(Shanghai)’. intends to establish the
"Procedures for Acquisition or Disposal of Securities Investments" and the
"Internal Control System for the Investment Cycle."
2. In order to strengthen and adjust the external investment structure of the internal
organization of the group, it is planned to sell all the shares of Xtek Semiconductor
(Huangshi) Co., Ltd. held by its overseas subsidiary Transcend Capital Corp. to its
subsidiaryScientech EngineeringCorp.(Shanghai).
3. Proposal on the 2025 annual auditplan
Board of
Directors’
meeting		 4th
Meeting of the
11th session
Dec. 13, 2024		 1. Report item 1: Report on Company’s information security
2. Report item 2: Report on Company's risk managementpolicies andprocedures
3. Report item 3: Report on the disposal of Forward Science Corp.’s shares.
1. Proposal to draft the Company’s financial forecast for 2024.
2. To meet the Company’s operating needs and enhance its financial structure, the
Company intends to apply for bank’s med/long term loan in performance
guarantee.
Board of
Directors’
meeting		 5th
Meeting of the
11th session
Jan. 7, 2025		 1. Amendment to the Subsidiary’s "Procedures for Acquisition or Disposal of Assets”
2. Subsidiary purchases office
3. Dissolution of the subsidiary “Transcend Capital Corp.”
Board of
Directors’
meeting		 6th
Meeting of the
11th session
Feb. 27, 2025		 Report item 1: Report on results of the ethical corporate management and sustainable
development endeavor
Report item 2: Report on the Company’s timeline for GHG inventory and verification
in support of the FSC’s “Sustainable Development Roadmap”
Report item 3: Report on the performance evaluation of the Board of Directors for
2024
Report item 4: Report on the communication between CPAs and the governance
body
1. Proposal on employee remuneration and director remuneration for 2024.
2. Proposal on the Company’s Business Report for 2024.
3. Proposal on the Company’s 2024 final accounting books (including the
consolidated financial statements);
4. Proposal on the Company’s Earnings Distribution Proposal for 2024.
5. Proposal to set the base date and distribution date for the earnings distribution in
cash for 2024.

78

  1. Amendment to Company’s “Articles of Incorporate” 7. Proposal to appoint the attesting CPAs for the Company’s 2025 financial statements.

  2. Proposal on loaning of funds to others.

  3. Proposal to issue the Company’s 2024 Internal Control System Statement. 10. Proposal on matters related to convening of the 2025 General Shareholders’ Meeting.

  4. Appointment of Head of R&D Department

  5. (XI) Where, during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, a director or supervisor has expressed a dissenting opinion with respect to a material resolution passed by the board of directors, and said dissenting opinion has been recorded or prepared as a written declaration, disclose the principal content thereof: None.

IV. Audit fee of independent auditors

  • (I) Amounts of the audit fees and non-audit fees paid to the attesting certified public accountants and to the accounting firm to which they belong and to any affiliated enterprises as well as the details of non-audit services.
Unit: NT$ thousand Unit: NT$ thousand
Non-
CPA Audit fee
CPA Name CPA audit period audit fee Total Remarks
Firm (Note 1)
(Note 2)
Deloitte
& Touche
Taiwan
Hui-Min
Huang
Yu-Cheng
Hsin		 Jan. 1, 2024~Dec.31,
2024		 4,886 354 5,240

Note 1: Audit fee means the fee paid by the Company to the attesting CPAs for audit, review, and cross validation of the financial statements.

  • Note 2: None-audit fee means the fee for education and training, other review services, and tax attestation services.

  • When the company changes its accounting firm and the audit fees paid for the fiscal year in which such change took place are lower than those for the previous fiscal year, the amounts of the audit fees before and after the change and the reasons shall be disclosed: None.

  • When the audit fees paid for the current fiscal year are lower than those for the previous fiscal year by 10 percent or more, the reduction in the amount of audit fees, reduction percentage, and reason(s) therefor shall be disclosed: None.

V. Information on replacement of CPAs:

If the company has replaced its certified public accountant within the last 2 fiscal years or any subsequent interim period, it shall disclose the following information:

79

一 ( ) Former CPAs

Date of change Feb. 9, 2024 Feb. 9, 2024 Feb. 9, 2024 Feb. 9, 2024 Feb. 9, 2024
The reason and explanation of
changes		 In compliance with regulatory requirement on rotation,
starting from 2024, the CPA Hui-Min Huang retained and
CPA Chih-Ming Shao was replaced by CPA Yu-Cheng
Hsin.
State whether the appointment is
terminated or rejected by the
consignor or CPAs		 Client
Status
CPA		 Consignor
Appointment terminated
automatically		 Not available Not available
Appointment rejected
(discontinued)		 Not available Not available
The opinions other than
unmodified opinion issued in the
last two years and the reasons
for the said opinions		 None
Is there any disagreement in
opinion with the issuer		 Yes Accounting principle orpractice
Disclosure of financial statements
Auditing scope or procedures
Others
No V
Explanation
Supplementary Disclosure
(Disclosures Specified in Article
10.6.1.4~7 of the Standards)		 None

( 二 ) Successor CPAs

二)Successor CPAs
Accountingfirm Deloitte & Touche
CPA Hui-Min Huang,Yu-ChengHsin
Date of Engagement Approved byBoard of Directors on Feb. 29,2024
Prior to the formal Engagement, any
inquiry or consultation on the
Accounting Treatment or Accounting
Principles for specific transactions,
and the type of audit opinion that
might be rendered on the financial
report		 None
Written Opinions from the Successor
CPAs that are Different from the
Former CPA's Opinions		 None

80

  • VI. Where the company's Chairman, president, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm, the name and position of the person, and the period during which the position was held, shall be disclosed: None.

  • VII. Any equity transfer or change in equity pledged by a director, managerial officer, or shareholder with a 10% stake or more during the most recent year or during the current year up to the date of publication of the annual report:

  • Please refer to the website of Market Observation Post System:

Market Observation Post System/Basic Information/Directors, Supervisors, and Major Shareholders' Shareholding, Pledge, and Transfer

https://mopsov.twse.com.tw/mops/web/index

  1. Changes in shares transferred and pledged by shareholder
Name Reason
for
transfer		 Date of
transaction		 Counterparty Relationship between the
counterparty and the
Company’s directors,
supervisors, managerial
officers, and major
shareholders with a stake of
more than 10%		 Shares Transaction
price
Hung-Liang
Hsieh		 Donor 113.01.12 Wei-Wen
Hsieh		 Father 72,639 206.50
Hung-Liang
Hsieh		 Donor 113.01.12 Wei-Lin
Hsieh		 Father 48,426 206.50
Wei-Lin
Hsieh		 Donee 113.01.12 Hung-Liang
Hsieh		 Children 48,426 206.50
Wei-Lin
Hsieh		 Donee 113.01.15 Fen-Ching
Hsieh-Chiu		 Children 24,213 206.50

II. Information on the counterparty to a stock transfer who is also a related party: None

81

VIII. Information on the top ten shareholders with the largest shareholding ratio, who are related persons, spouses, or relatives within the second degree. Mar. 25, 2025

Name Shareholding Shareholding The name of the entity or person and their relationship to The name of the entity or person and their relationship to
Shareholding of spouse Total shares held in the
any of the other top 10 shareholders with which the
Remarks
and minor children name of others person is a related party or has a relationship of spouse or
relative within the 2nd degree.
Shares Number of Number of
Ownership Ownership Ownership Name Relationship
shares shares
Hung-Liang Hsieh 7,822,390 9.74% 5,974,007 7.44% 0 0 Fen-Ching Hsieh-Chiu
Wei-Lun Hsieh
Wei Lin Hsieh
Wei-Wen Hsieh		 Spouse
1st degree of kinship
1st degree of kinship
1st degree of kinship		 -
Fen-Ching Hsieh-Chiu 5,974,007 7.44% 7,822,390 9.74% 0 0 Hung-Liang Hsieh
Wei-Lun Hsieh
Wei Lin Hsieh
Wei-Wen Hsieh		 Spouse
1st degree of kinship
1st degree of kinship
1st degree of kinship		 -
Nextgem Inc.
(Representative: Ying-Yin
Chiu)		 3,964,292 4.94% — — 0 0 Paradigm Investment Corp.
Hong Lun Investment Corp.
Huan ZhongInvestment Corp.		 The Chairmen are the
same person		 -
Paradigm Investment Corp.
(Representative:
Ying-Yin Chiu)		 3,647,721 4.54% 0 0 0 0 Nextgem Inc.
Hong Lun Investment Corp.
Huan ZhongInvestment Corp.		 The Chairmen are the
same person		 -
Hong Lun Investment Corp.
(Representative:
Ying-Yin Chiu)		 3,373,277 4.21% 0 0 0 0 Nextgem Inc.
Paradigm Investment Corp.
Huan ZhongInvestment Corp.		 The Chairmen are the
same person
Wei-Lun Hsieh 2,817,065 3.51% 0 0 0 0 Hung-Liang Hsieh
Fen-Ching Hsieh-Chiu
Wei-Lin Hsieh
Wei-Wen Hsieh		 1st degree of kinship
1st degree of kinship
A relative within the 2nd
degree of kinship
A relative within the 2nd
degree of kinship		 -
Huan Zhong Investment
Corp.
(Representative:
Ying-Yin Chiu)		 2,352,909 2.93% 0 0 0 0 Nextgem Inc.
Paradigm Investment Corp.
Hong Lun Investment Corp.		 The Chairmen are the
same person		 -
Wei-Lin Hsieh 1,589,573 1.98% 0 0 0 0 Hung-Liang Hsieh
Fen-Ching Hsieh-Chiu
Wei-Lun Hsieh		 1st degree of kinship
1st degree of kinship		 -

82

Name Shareholding Shareholding The name of the entity or person and their relationship to The name of the entity or person and their relationship to
Shareholding of spouse Total shares held in the
any of the other top 10 shareholders with which the
Remarks
and minor children name of others person is a related party or has a relationship of spouse or
relative within the 2nd degree.
Shares Number of Number of
shares		 Name
Ownership Ownership Ownership Relationship
shares
Wei-Wen Hsieh A relative within the 2nd
degree of kinship
A relative within the 2nd
degree of kinship
Citibank Taiwan in custody
for Norges Bank		 1,364,000 1.70% — — — — — — —
Concord Investment
Corp.		 1,283,214 1.60% — — — — — — —

83

IX. The total number of shares and the consolidated equity stake percentage held in any single investee enterprise by the Company, its directors, managerial officers, or any companies controlled either directly or indirectly by the Company

2024.12.31;Unit: Thousand shares;% 2024.12.31;Unit: Thousand shares;% 2024.12.31;Unit: Thousand shares;% 2024.12.31;Unit: Thousand shares;%
Ownership by Directors,
Ownership by the Managers and
Total Ownership
Company Directly/Indirectly
Investor
Owned Subsidiaries
Number of Number of Number of
Ownership Ownership Ownership
shares shares shares
Scientech Investment Corp. 5,540 100 0 0 5,540 100
Acromass Technologies,Inc. 27,000 100 0 0 27,000 100
Natgem Inc. 800 100 0 0 800 100
Scientech GMBH Note1 100 0 0 Note1 100
Transcend Capital Corp. 14,290 100 0 0 14,290 100
Simple Investment Corp. 0 0 4,906 100 4,906 100
Scientech EngineeringUSA Corp. 0 0 300 100 300 100
Scientech EngineeringCorp.(Shanghai) 0 0 Note1 100 Note1 100
Scientech Engineering (Hong Kong)
Limited		 0 0 Note1 100 Note1 100
YAYATECH Co. Ltd. 6,723 40 0 0 6,723 40

Note 1: Unlimited shares of a limited company.

84

Three. Fund Raising Status

I. Capital and shares

(I) Source of share capital

April 24,2025 April 24,2025 April 24,2025 April 24,2025 April 24,2025
Authorized capital
Paid-in capital Remarks
stock
Issuance
Shares (in
thousand
shares)		 Amount
(NT$thousa
nd)		 Shares (in
thousand
shares)		 Amount
(NT$thousa
nd)		 Capital increase
Capital paid
Date price
effective (approval)
in by assets
(NT$) Source of share capital date and the
other than
number of official
cash
letter
2013.03 10 100,000 1,000,000 81,139 811,390 Capital increase by
cash NT$70,160,000		 None Jing-Shou-Shang-
Zi #10201058740
dated March 29,
2013
2012.02 10 100,000 1,000,000 74,123 741,230 Capital reduction
through retirement of
treasury shares in the
amount of
NT$7,779,970		 None Jing-Shou-Shang-
Zi #10101026750
dated February 15,
2012
2011.10 10 100,000 1,000,000 74,901 749,010 Capital increase
through M&A in the
amount of
NT$149,009,970		 None Jing-Shou-Shang-
Zi #10001244240
dated October 31,
2011
2007.08 10 75,000 750,000 60,000 600,000 Recapitalization of
earnings in the amount
of NT$25,000,000		 None Jing-Shou-Shang-
Zi #09601204390
dated August 22,
2007
April 24, 2025 April 24, 2025 April 24, 2025 April 24, 2025 April 24, 2025
Authorized capital stock
Type of equity Shares Treasure shares Remarks
Unissued shares Total
outstanding
Registered common
shares		 80,328 thousand
shares		 19,672 thousand
shares		 0 thousand
shares		 100,000 shares Listed shares
  • (II) Name of major shareholder Mar. 25, 2025
Name No. of Shares Held Shareholding
percentage
Hung-Liang Hsieh 7,822,390 9.74%
Fen-Ching Hsieh-Chiu 5,974,007 7.44%
Nextgem Inc. 3,964,292 4.94%
Paradigm Investment Corp. 3,647,721 4.54%
Hong Lun Investment Corp. 3,373,277 4.21%
Wei-Lun Hsieh 2,817,065 3.51%
Huan Zhong Investment Corp. 2,352,909 2.93%

85

Name No. of Shares Held Shareholding
percentage
Wei-Lin Hsieh 1,589,573 1.98%
Citibank Taiwan in custody for Norges
Bank		 1,364,000 1.70%
Concord Investment Corp. 1,283,214 1.60%

(III) Company's dividend policy and implementation thereof

  1. Dividend policy adopted in the company's articles of incorporation

If the Company has earnings at the end of year, it shall allocate 5%~15% of such earnings as employee remuneration; the Board of Directors shall allocate no more than 2% of such earnings as director remuneration. The employee remuneration proposal and director remuneration proposal shall be submitted and reported to the shareholders' meeting.

Employee remuneration may be distributed in cash or shares; those eligible for employee remuneration shall also include the employees of a subsidiary or affiliate who meet certain criteria. Such criteria shall be formulated by the Board of Directors. Director remuneration shall be distributed in cash. However, if the Company still has accumulated losses, an amount equal to such losses shall be reserved in advance, and the remainder may then be distributed as employee remuneration and director remuneration according to the percentage mentioned in the preceding paragraph.

In the event of surplus earnings after closing of annual accounts, due taxes shall be paid in accordance with the law, and losses incurred in previous years shall be compensated. Upon completion of the preceding actions, 10% of the remainder surplus shall be allocated as legal reserve. However, in the event that the accumulated legal reserve is equivalent to or exceeds the Company's total paid-in capital, such allocation may be exempted. The remainder may be set aside or reversed as special reserve in accordance with laws and regulations. If there is remainder surplus, the Board of Directors shall draft a surplus distribution proposal regarding the remainder of the surplus as well as accumulated undistributed surplus, shall decide whether to distribute the distributable dividends and bonus in cash or in shares, in whole or in part, by a majority vote at a Board of Directors meeting attended by two thirds or more of all directors, and shall report its decision to the Shareholders' Meeting. However, distribution of in the form of new shares shall be subject to a resolution of the Shareholders' Meeting.

The Company hereby authorizes the Board of Directors to distribute legal reserves and a part or all of the capital reserves stipulated in Article 21 of the Company in cash by a resolution achieved by a majority vote at a Board of Directors meeting attended by two thirds or more of all directors; however, the Board of Directors shall report its resolution to the Shareholders' Meeting. However, distribution of in the form of new shares shall be subject to a resolution of the Shareholders' Meeting.

The Company’s dividend policy considers the environment it is in and the growth stage it is at. To cope with future capital requirements and long-term financial planning while maintaining shareholder interests and a balanced dividend policy, shareholder dividends will be distributed in shares or in cash, as appropriate, based on future capital expenditure requirements and the extent of dilution effect on earnings per share. Of the shareholder dividends distributed, no less than 10% shall be in cash. The actual distribution percentage shall be determined by the Board of Directors by considering the Company’s business planning, investment plan, capital planning, and the changes in internal and external environment.

86

According to the Company’s dividend distribution policy, the amount of shareholders’ dividend, in principle, should be 40%~60% of the annual net income, and may be adjusted according to whether there is a material investment item in the following year and how the financial forecasting for the following year is. However, such amount, in rare circumstances, shall be determined by the Board of Directors through deliberation.

  1. Dividend distributions proposed at the most recent year

On Feburary 27, 2025, the Company’s Board of Directors passed a resolution to distribute a cash dividend distribution to shareholders in the amount of NT$361,476 thousand, with a distribution of NT$4.5 per share. Such resolution will be proposed and reported to the Shareholders' Meeting.

  • (IV) Effect upon business performance and earnings per share of any stock dividend distribution proposed or adopted at the most recent shareholders' meeting This is not applicable because so far the Company did not intend to distribute any stock dividends.

  • (V) Remuneration to employees and directors:

  • Percentage or scope of remuneration of employees and directors stipulated in the Company’s Articles of Incorporation: Refer to (III).

  • The basis for estimating the amount of employee, director, and supervisor compensation, for calculating the number of shares to be distributed as employee compensation, and the accounting treatment of the discrepancy, if any, between the actual distributed amount and the estimated figure, for the current period.

At the Board of Directors meeting dated Feburary 27, 2025, the Company resolved to distribute the remuneration of NT$108,700 thousand to employees of 2024 and the remuneration of NT$14,000 thousand to directors of 2023, both amounts were the possible distribution amount estimated based on past experience and by referencing the Company’s Articles of Incorporation.

Any material change in the distribution amount after the end of a fiscal year is charged to the expenses in the year in which it occurred. Any change in the distribution amount on the Shareholders' Meeting date is accounted for as changes in accounting estimates and should be recognized in the year in which the Shareholders' Meeting is held. If the Shareholders' Meeting resolves to distribute employee remuneration in the form of shares, the number of share dividends shall be calculated by taking the resolved amount and dividing it by the fair value of shares; the fair value of shares is determined at the closing price on the date immediately preceding the Board of Directors meeting date.

  1. Distribution of remuneration approved by the board:

  2. (1) Amount of remuneration for employees and directors payable in cash or shares. If there is any discrepancy between that amount and the estimated figure for the fiscal year these expenses are recognized, the discrepancy, its cause, and the status of treatment shall be disclosed: The Company resolved to distribute employee remuneration for 2024 in the amount of NT$108,700 thousand and director remuneration for 2024 in the amount of NT$14,000 thousand at the Board of Directors meeting dated Feburary 27, 2025.

  3. (2) The amount of any employee compensation distributed in stocks, and the size of that amount as a percentage of the sum of the after-tax net income stated in the parent company only financial reports or individual financial reports for the current period and total employee compensation: N/A.

87

  1. The actual distribution of employee and director compensation for the previous fiscal year (with an indication of the number of shares, monetary amount, and stock price, of the shares distributed), and, if there is any discrepancy between the actual distribution and the recognized employee or director compensation, additionally the discrepancy, cause, and how it is treated.

The amount of employee remuneration and director remuneration for 2024 actually distributed is as follows:

Actually distributed
Originally estimated Difference

amount resolved by the
Differentials
amount Reason
Shareholders' Meeting
Status of distribution:
Employee remuneration in cash NT$108,700
thousand		 NT$108,700
thousand		 0 Not applicable
Employee remuneration in shares NT$0 thousand NT$0 thousand 0 Not applicable
A. Number of shares 0 thousand shares 0 thousand shares 0 Not applicable
B. Amount NT$0 thousand NT$0 thousand 0 Not applicable
C. As a percentage of the number of shares
outstandingat the end ofyear(%)
0		 0 0 Not applicable
Directors' remuneration NT$14,000 thousand NT$14,000
thousand		 0 Not applicable
Information on earningsper share
Original earningsper share(after taxes) NT$11.54 NT$11.54 0 Not applicable
Imputed earningsper share(after taxes) NT11.54 NT$11.54 0 Not applicable

Note: If the actual distributed amount is different from the estimated amount, after the shareholders’ meeting approves, the differences are accounted for as changes in accounting estimates and recognized in profit or loss in the current year.

(VI) Buyback of shares by the Company

  • A.Share Buyback by the Company (Already completed)

Apr. 24, 2025

Buyback trench 1st trench 2nd trench 3rd trench 4th trench
Purpose of buyback To transfer the shares
to employees		 To transfer the shares
to employees		 To transfer the shares
to employees		 To transfer the shares
to employees
Buyback period January 1 to June 30,
2009		 June 9 to August 8,
2015		 May 15 to July 11,
2017		 September 19, 2018
to November 18,
2018
Buyback price range NT$10~18 NT$52~75 NT$50~66 NT$57~76
Types and numbers of
shares bought back		 1,466,997
common shares		 811,000
common shares		 811,000
common shares		 811,000
common shares
Amount of shares bought
back		 NT$19,021,576 NT$47,742,077 NT$45,650,289 NT$50,659,340
Ratio of the number of
shares already bought back
to the number of shares
intended to be bought back
(%)		 100% 100% 100% 100%
The number of shares
bought back that have been
cancelled or transferred		 1,466,997
common shares		 811,000
common shares		 811,000
common shares		 811,000
common shares
Accumulated number of
the Company’s shares held
bythe Company		 0 0 0 0
Ratio of the accumulated
number of the Company’s
shares held bythe		 0 0 0 0

88

Company to the total number of issued shares (%)

Note: Share buyback will continue if the share price falls below the price range set by the Company during the buyback period.

B. Share Buyback by the Company : None

II. Corporate bonds:

  1. Issuance of Corporate Bonds
Type of Corporate
Bond		 First domestic unsecured
convertible corporate bond		 Second domestic unsecured
convertible corporate bond
Issuance date 2024/6/7 2024/6/19
Face value NT$100,000.- NT$100,000
Issuance & Trading
Location(Note 1)		 Not Applicable Not Applicable
Issuanceprice NT$100.- NT$117.07.-
Issuance amount NT$200,000,000.- NT$1,000,000,000.-
Coupon rate 0% 0%
Term and Maturity Date Term: 3 years
MaturityDate: 2027/06/07		 Term: 3 years
MaturityDate: 2027/06/19
Guarantee Institution None None
Trustee Taipei Fubon Bank Taipei Fubon Bank
Underwriter Fubon Securities Co.,Ltd. Fubon Securities Co.,Ltd.
Lawyer Far East Law Offices
Charles Chiu – Attorneyat law		 Far East Law offices
Charles Chiu – Attorneyat law
Accountant Deloitte & Touche Taiwan
Hui-Min Huang & Chih-Ming
Shao		 Deloitte & Touche Taiwan
Hui-Min Huang & Chih-Ming
Shao
Principal payment
method		 Except under the
circumstances when the holder
of this Convertible Corporate
Bond holder converts the bond
into the Company's common
shares by Article 10 of the
Regulations or exercises the
put right in accordance with
Article 19 of the Regulations,
or the Company redeems the
bond in advance in accordance
with Article 18 of the
Regulations, or when the
Company repurchases and
cancels the bond through
TPEx, the Company shall
repay the principal amount of
these bonds in cash in a single
lumpsum upon maturity		 Except under the
circumstances when the holder
of this Convertible Corporate
Bond holder converts the bond
into the Company's common
shares by Article 10 of the
Regulations or exercises the
put right in accordance with
Article 19 of the Regulations,
or the Company redeems the
bond in advance in accordance
with Article 18 of the
Regulations, or when the
Company repurchases and
cancels the bond through
TPEx, the Company shall
repay the principal amount of
these bonds in cash in a single
lumpsum upon maturity
OutstandingPrincipal NT$200,000,000.- NT$1,000,000,000.-

89

Type of Corporate
Bond		 First domestic unsecured
convertible corporate bond		 Second domestic unsecured
convertible corporate bond
Redemption or Advance
Repayment Clause		 1. This convertible bond is
convertible from the day
following the completion of
three months from the issue
date (September 8, 2024) up
to the fortieth day before the
expiration of the issuance
period (April 28, 2027). If
the closing price of the
Company's common stock
exceeds the then-current
conversion price by 30%
(inclusive) for thirty
consecutive business days,
the Company may, within
the subsequent thirty
business days, notify
bondholders by registered
mail (based on the
bondholder register as of the
fifth business day prior to
the date of sending the
"Bond Redemption Notice")
with a thirty-day maturity
"Bond Redemption Notice"
(the aforementioned period
shall commence from the
date of dispatch by the
Company, and the maturity
date of said period shall be
the bond redemption record
date, and the aforementioned
period shall not fall within
the suspension of conversion
period as stipulated in
Article 9). For investors who
acquire this convertible bond
due to trading or other
reasons thereafter, the
Company will make a public
announcement and request
the TPEx to announce the
exercise of the bondholders'
redemption right. Within
five business days after the
bond redemption record
date, the Company will
redeem the outstanding
convertible bonds at their
face value in cash.		 1. This convertible bond is
convertible from the day
following the completion of
three months from the issue
date (September 20, 2024)
up to the fortieth day before
the expiration of the
issuance period (May 10,
2027). If the closing price of
the Company's common
stock exceeds the then-
current conversion price by
30% (inclusive) for thirty
consecutive business days,
the Company may, within
the subsequent thirty
business days, notify
bondholders by registered
mail (based on the
bondholder register as of the
fifth business day prior to
the date of sending the
"Bond Redemption Notice")
with a thirty-day maturity
"Bond Redemption Notice"
(the aforementioned period
shall commence from the
date of dispatch by the
Company, and the maturity
date of said period shall be
the bond redemption record
date, and the aforementioned
period shall not fall within
the suspension of conversion
period as stipulated in
Article 9). For investors who
acquire this convertible bond
due to trading or other
reasons thereafter, the
Company will make a public
announcement and request
the TPEx to announce the
exercise of the bondholders'
redemption right. Within
five business days after the
bond redemption record
date, the Company will
redeem the outstanding
convertible bonds at their
face value in cash.

90

Type of Corporate
Bond		 First domestic unsecured
convertible corporate bond		 Second domestic unsecured
convertible corporate bond
2. This convertible corporate
bond is redeemable by the
Company, at any time after
the day following the third
full month from the issue
date (September 8, 2024)
and up to forty days prior to
the maturity date of the
issuance period (April 28,
2027), when the outstanding
balance of this convertible
corporate bond in circulation
falls below ten percent
(10%) of the original total
issuance amount. The
Company may exercise this
right by sending a registered
"Bond Redemption Notice"
with a thirty-day maturity
period to the bondholders
(based on the bondholder
registry as of the fifth
business day preceding the
date of sending the "Bond
Redemption Notice"). This
thirty-day period
commences from the date of
dispatch by the Company,
and the maturity date of this
period shall be the bond
redemption record date. This
period shall not coincide
with the suspension of
conversion period as
stipulated in Article 9. For
bondholders who acquire
this convertible corporate
bond due to trading or other
reasons after the
aforementioned notification
date, the Company will
make a public
announcement and request
TPEx to announce the
bondholders' redemption
rights. Within five business
days after the bond
redemption record date, the
Company will redeem the
outstandingconvertible		 2. This convertible corporate
bond is redeemable by the
Company, at any time after
the day following the third
full month from the issue
date (September 20, 2024)
and up to forty days prior to
the maturity date of the
issuance period (May 10,
2027), when the outstanding
balance of this convertible
corporate bond in circulation
falls below ten percent
(10%) of the original total
issuance amount. The
Company may exercise this
right by sending a registered
"Bond Redemption Notice"
with a thirty-day maturity
period to the bondholders
(based on the bondholder
registry as of the fifth
business day preceding the
date of sending the "Bond
Redemption Notice"). This
thirty-day period
commences from the date of
dispatch by the Company,
and the maturity date of this
period shall be the bond
redemption record date. This
period shall not coincide
with the suspension of
conversion period as
stipulated in Article 9. For
bondholders who acquire
this convertible corporate
bond due to trading or other
reasons after the
aforementioned notification
date, the Company will
make a public
announcement and request
TPEx to announce the
bondholders' redemption
rights. Within five business
days after the bond
redemption record date, the
Company will redeem the
outstandingconvertible

91

Type of Corporate
Bond		 Type of Corporate
Bond		 First domestic unsecured
convertible corporate bond		 Second domestic unsecured
convertible corporate bond
corporate bonds in
circulation at their par value
in cash.
3. If a bondholder fails to
provide a written response to
the Company's stock transfer
agent (effective upon
delivery, or based on the
postmark date for mailed
responses) before the bond
redemption record date
stated in the "Bond
Redemption Notice," the
Company will redeem the
convertible bonds held by
the bondholder at their face
value in cash within five
business days after the bond
redemption record date.
4. If the Company exercises its
early redemption right on
these convertible bonds, the
deadline for bondholders to
request conversion will be
the second business day
following the termination of
over-the-counter trading.
However, bondholders must
submit their conversion
application to their securities
firm no later than the
business day before this
deadline.		 corporate bonds in
circulation at their par value
in cash.
3. If a bondholder fails to
provide a written response to
the Company's stock transfer
agent (effective upon
delivery, or based on the
postmark date for mailed
responses) before the bond
redemption record date
stated in the "Bond
Redemption Notice," the
Company will redeem the
convertible bonds held by
the bondholder at their face
value in cash within five
business days after the bond
redemption record date.
4. If the Company exercises its
early redemption right on
these convertible bonds, the
deadline for bondholders to
request conversion will be
the second business day
following the termination of
over-the-counter trading.
However, bondholders must
submit their conversion
application to their securities
firm no later than the
business day before this
deadline.
Restriction Clauses
(Note 2)		 None None
Credit Rating Agency
Name, Rating Date,
RatingOutcome		 Not Applicable Not Applicable
Other Attached Rights Up till the time of
the printing of the
annual report, the
amount money of
the conversion
(exchange or
buyback) of bonds
into common stocks,
overseas depositary
receipt or other
securities.
As of the date of printing this
annual report, 0 convertible
bonds have been converted,
resulting in 0 shares converted.
The outstanding principal
amount of the unconverted
bonds is NT$200,000,000."		 As of the date of printing this
annual report, 0 convertible
bonds have been converted,
resulting in 0 shares converted.
The outstanding principal
amount of the unconverted
bonds is NT$1,000,000,000."

92

Type of Corporate
Bond		 Type of Corporate
Bond		 First domestic unsecured
convertible corporate bond		 Second domestic unsecured
convertible corporate bond
Issue & Conversion
(Exchange or
Buyback) Method		 Please refer to the issuance
and conversion policy of the
Company’s 1th domestic
unsecured convertible bond.		 Please refer to the issuance and
conversion policy of the
Company’s 2nd domestic
unsecured convertible bond.
Issue and conversion,
exchange or buyback
methods, issue
conditions that my
dilute equity and affect
the present
shareholders’ equity		 If all the remaining corporate
bonds are converted into
common shares based on the
current conversion price, the
Company will need to issue
another 564,175 common
shares, with a share capital
dilution rate of 0.70%, which
has limited impact on
shareholders' equity.		 If all the remaining corporate
bonds are converted into
common shares based on the
current conversion price, the
Company will need to issue
another 2,919,708 common
shares, with a share capital
dilution rate of 3.51%, which
has limited impact on
shareholders' equity.
Entrusted Institution of
the Convertible Bonds		 Not Applicable Not Applicable

Note 1: For offshore corporate bond holders to fill in.

Note 2: Such as restrictions on the payment of cash dividends, investment abroad or request maintaining a certain equity asset ratio, etc.

  1. Convertible Corporate Bond Information
First domestic unsecured First domestic unsecured Second domestic unsecured Second domestic unsecured
Type ofCorporate Bond
convertible corporate bond convertible corporate bond
Item / Year Fiscal year
2024		 As of Apr. 24,
2025 (Note 2)		 Fiscal year
2024		 As of Apr. 24,
2025
(Note 2)
Market Price
of
Convertible
Corporate
Bond
(Note 2)		 Maximum 153 122.5 159 125.5
Minimum 110 99 123 96
Average 128.11 113.61 133.32 112.91
Conversion Price 354.5 354.5 342.5 342.5
Issue Date & Conversion
Price at Issuance		 Issue Date：June 7, 2024
Conversion Price at Issuance：
NT$359.7/Share		 Issue Date: June 19, 2024
Conversion Price at
Issuance：：NT$347.5/Share
Obligation Method for
Executing the Conversion
(Note 1)
Issue new shares		 Issue new shares

Note 1: Deliver issued shares or new shares.

Note 2: The annual information should be filled up to the time of the printing of the annual report.

III. Preferred shares: None

IV. Global deposit receipts: None

V. Employee stock options: None

93

VI. New restricted employee shares: None

  • VII. The situation of merger, acquisition or transfer of shares of other companies and issuance of new shares: None

  • VIII. Status of implementation of capital allocation plans: None

94

Four. Operational Highlights

I. Scope of business

  1. Business Scope

  2. (1) Major lines of business

  3. A. CB01010 Machinery Equipment Manufacturing

  4. B. CC01080 Electronics Components Manufacturing C. E603050 Automatic Control Equipment Engineering

  5. D. F113010 Wholesale of Machinery

  6. E. F119010 Wholesale of Electronic Materials

  7. F. F113030 Wholesale of Precision Instruments

  8. G. F401010 International Trade

  9. H. F401021 Restrained Telecom Radio Frequency Equipment and Materials Import I. C901010 Pottery and Ceramics Products Manufacturing J. C901020 Glass and Glass Products Manufacturing K. IG01010 Biotechnology Services L. IC01010 Medicine Inspection M. C199990 Manufacture of Other Food Products Not Elsewhere Classified N. C802100 Cosmetics Manufacturing O. C105010 Edible Oil and Fat Manufacturing

  10. P. C110010 Beverages Manufacturing Q. F102020 Wholesale of Edible Fat and Oil R. F102170 Wholesale of Other Food Products and Groceries S. F203010 Retail Sale of Food, Grocery and Beverage T. F213040 Retail Sale of Precision Instruments U. F213080 Retail Sale of Other Machinery and Equipment V. F218010 Retail Sale of Computer Software

  11. W. F219010 Retail Sale of Electronic Materials X. IZ99990 Other Industry and Commerce Services Not Elsewhere Classified Y. Z999999 All business activities that are not prohibited or restricted by law, except those that are subject to special approval

(2) Operating ratio

Unit: NT$ thousand; %

Year 2023 2023 2024 2024
Main item Amount Percentage Amount Percentage
Goods sales revenue 6,675,214 96.57 9,400,488 97.03
Services revenue 229,473 3.32 277,278 2.86
Other operatingrevenue 7,294 0.11 10,514 0.11
Net revenue 6,911,981 100.00 9,688,280 100.00

Data source: Data of 2023 and 2024 are based on the financial statements audited by CPAs.

  • (3) Current lines of products

  • A. Equipment Manufacturing:

    • (1.) Batch Type Wet-Process Tools, which are mainly used in:

      1. Advanced Packaging Process

      2. Semiconductor Front-End Process

      3. Compound Semiconductor

      4. Microelectromechanical Systems (MEMS)

95

  1. Mini LED/Micro LED Process

  2. (2.) Single-wafer Type Wet-Process Tools, which are mainly used in:

  3. Advanced Packaging Process

  4. Semiconductor Front-End Process

  5. Compound Semiconductor

  6. Microelectromechanical Systems (MEMS)

  7. Mini-LED/Micro LED Process

  8. (3.) Temporary Bonding Debonding System (TBDB), which is mainly used in: IGBT power devices and advanced packaging process, including:

  9. Temporary Bonding System

  10. Temporary Debonding System

  11. Release Layer Coating System

  12. Carrier (Glass) Recycling System

B. Wafer reclaim

The wafer reclaim service denotes the process of restoring the cleanness and flatness of a Test Wafer and Dummy/Control Wafer used in semiconductor manufacturing process to the level of cleanness and flatness characteristic of a brand new Test Wafer and Dummy/Control Wafer, typically by means of sorting, cleaning, lapping, polishing, and drying, so that they can be used as a Dummy/Control Wafer again. Wafer reclaim mainly aims to reduce the overall by removing the necessity to use a brand-new Test Wafer and Dummy/Control Wafer every single time.

(A) 12” Si-wafer reclaim

  • (B) SiC wafer reclaim and full process after the crystal-growth process

measurement equipment, process equipment, chemical analysis equipment and materials needed by the various industries such as the semiconductor industry, optoelectronic industry, LCD/LED/solar energy industries, and other industries.

(4) New products to be developed

The Company's equipment manufacturing division has been developing mainly semiconductor and LED wet process equipment for many years. In the early stage, the Company mainly focused on providing the technologies for batch type equipment and single-wafer type wet process in terms of etching, cleaning, and photoresist removal; to date, the Company is a master in such technologies. In addition, the Company has begun to develop high-capacity single-wafer and batch type wet process equipment, in the hope that it can be applied to customers’ new process. Aside from that, the Company also continues the past development plan, focuses on 8”/12” high-end process batch cleaning equipment, and intensifies the investment in equipment for advanced packaging in terms of wafer bonding and debonding, making the Company's production process equipment more competitive in the market.

The company's equipment manufacturing division plans to develop products and technologies this year, which are stated as follows:

96

Industry
category		 Plan name
Semiconductor 1. 12-inch advancedprocess batch type cleaningequipment
2. Development of the new-generation single-wafer wet process cleaning equipment
3. High-clean single-wafer wet process equipment for advanced packaging
4.Next-generation wafer and glass temporary bonding/debonding process equipment
5.Square wafer hanger type electroplating process equipment
6.Mask process cleaning equipment

In terms of the R&D of wafer reclaim, the Company has made heavy investment to improve process and develop relevant system tools in order to meet customers’ requirements of advanced process. Doing so aims to improve the process efficiency and satisfy customers’ needs for advanced process applications.

The Company will leverage existing core technologies to aggressively develop the technologies for processing non-silicon materials to lead the market.

Industry
category		 Plan name R&D content
Wafer reclaim To develop the technology of
silicon wafer reclaim process		 1. Advanced process technology development for
2. Wafer polish process capability.
3. Wafer clean process capability.
4. Film strip process technology.
To develop process technology
for processing non-silicon
materials		 1. Development of large size SiC wafers process
technology. (150mm/200mm)
2. Development of large size semi-insulated SiC
wafersprocess technology.(100mm/150mm)

2. Industry Overview

(1). Status and development of the industry

The supply and demand status and future growth potential of the wafer reclaim market and semiconductor/LED/TFT-LCD equipment suppliers are closely related to the development of the semiconductor industry and the scale of the TFT-LCD and LED markets. The following is a description of the semiconductor, TFT-LCD, and LED markets:

  • A. Semiconductor

IDC predicts that the global semiconductor market will continue to grow in 2025, with an annual growth rate expected to exceed 15%, mainly driven by the continued increase in demand for AI (artificial intelligence) and high-performance computing (HPC).

ASML CEO Christophe Fouquet predicts that the global semiconductor market will grow at an annual rate of 9% by 2025, driven by surging demand for AI chips, and will exceed $1 trillion by 2030.

97

==> picture [351 x 205] intentionally omitted <==

  • B. Advanced packaging

According to data from Yole Intelligence, the global advanced packaging market is projected to grow from $42.9 billion in 2022 to $78.6 billion in 2028, with a compound annual growth rate (CAGR) of approximately 9%. This indicates a steady growth trend in the market through 2025. By 2027, the CoWoS industry is expected to achieve a CAGR of 10%, accounting for more than 50% of the overall IC packaging market, thereby becoming the mainstream packaging technology

==> picture [368 x 201] intentionally omitted <==

According to a report by Mordor Intelligence, the market size is expected to grow from US$32.59 billion in 2024 to US$54.69 billion in 2029, with a compound annual growth rate of 10.91%.

98

  • C. Compound semiconductor

  • According to a report by market analysis firm Yole Group, the compound semiconductor device market is growing rapidly, from US$12 billion in 2024 to US$25 billion in 2030, with a compound annual growth rate (CAGR) of nearly 13%, outpacing the broader semiconductor market.

D. LED industry

According to a report by Mordor Intelligence, the LED lighting market size is expected to grow from US$111.57 billion in 2024 to US$191 billion in 2029, with a compound annual growth rate of 11.35%.

==> picture [277 x 181] intentionally omitted <==

99

  • (2). Relations between upstream, midstream, and downstream of the industry:

The Company is an equipment supplier for the high-tech industry such as the semiconductor industry and TFT-LCD industry. Below is the relationship between the upstream, midstream, and downstream of the industry in which the Company is mainly engaged in:

==> picture [450 x 282] intentionally omitted <==

----- Start of picture text -----

Upstream Midstream Downstream
Electrical and electronics
industry
Transmission parts industry
Research and development, Semiconductor industry
innovative design, Flat panel display
electromechanical integration industry
Optoelectronic parts industry Back-end packaging
industry
Ga As industry
LED manufacturing
Automatic control components industry
industry Solar energy industry
Biotech industry
Equipment assembly, test, and Wafer reclaim industry
maintenance
Machining Industry
Hardware industry
----- End of picture text -----

Below is the diagram of relationship between the upstream, midstream, and downstream of the wafer reclaim industry in which the Company operates: Post-process used monitoring wafers

==> picture [426 x 85] intentionally omitted <==

----- Start of picture text -----

OEM of wafer
IC foundry
reclaim
Reclaimed products
----- End of picture text -----

  • (3) Various product development trends

  • A. Semiconductor industry equipment, whether for front-end or back-end processes, is moving towards new generations of precision manufacturing technologies, progressing from 28nm towards 20nm, 14nm, 10nm, 7nm, 5nm, 3nm, and 2nm process technologies.

  • B. The advanced packaging processes in the back-end of semiconductor manufacturing are developing rapidly, and various new technologies progressing quickly, such as SIP (System in Package), Fan-out, and 3D-IC.

  • C. TFT-LCD industry is trending towards large size and LED backlight modules.

  • D. Developing custom equipment tailored to customers’ needs requires joint efforts from them. Consequently, a good understanding of the process will facilitate equipment development, and investment in enormous manpower and funds is required for advancing the equipment industry.

100

Based on various sources, the semiconductor industry is expected to show the following development trends in 2024 and 2025.

  1. Growth Driven by Artificial Intelligence (AI) and High-Performance Computing (HPC) Demands: The continuous surge in AI and HPC requirements is propelling significant growth in the semiconductor industry.

  2. Progress in advanced process technology: 2025 will be a critical year for 2nm technology, and major wafer manufacturers such as TSMC, Samsung and Intel will enter the 2nm mass production stage.

  3. Development of advanced packaging technology: As the demand for chip functionality and performance increases, advanced packaging technology is becoming increasingly important.

  4. Supply chain resilience and geopolitical impacts: As geopolitical tensions intensify, corporate risk uncertainty increases, affecting the entire semiconductor ecosystem.

  5. Talent shortage and cultivation: 52% of respondents believe that talent shortage is the primary challenge of the semiconductor industry, and talent training and retention are also the primary strategic focus of companies in the next three years.

(4) Competition and market share

A. SWOT analysis of the agent industry

Strength Weakness
A.The product line is of good quality and
performance, and its functions meet
customers’ development needs at present and
in the future.
B.The Company’s rich experience in, and
mature technology for, process and
equipment is helpful in fully leveraging the
technologies for which the Company is an
agent to satisfy customers’ process
development needs.
C.Since foreign principals are well ahead of
domestic manufacturers in terms of process
technology, in the near future, domestically-
made machines are not likely to outstrip the
product lines for which the Company is an
agent.		 A.Being an oligopoly market, the process
equipment industry has an entry barrier.
B.Existing agents have been working well with
their principals for a long time, so winning
the agentship for other agents’ existing
product lines could be quite challenging.
Opportunities Threats
A.Having a stable customer base and a good
understanding of the process technology and
equipment gives the Company a comparative
advantage of winning the agentship for
different products.
B.Acting as an agent for various lines of
products makes it easier to provide
customers with total solutions.		 A.Some foreign principals have developed
similar process equipment, risking a price
war.
B.Once the agency business reaches a certain
scale, there is a risk that the principals might
want to sell directly to customers.

101

  • C.Having a customer base and experience in original equipment and process equipment facilitates the development of other business, e.g., used machines, plant-wide machine relocation, or maintenance of old equipment.

  • D.As foreign principals are trending towards the development of new technologies, they need to cultivate their local agents to serve their customers nearby. In this respect, an agent with a customer base and technology capacity is more likely to win an opportunity for strategic partnership.

  • E.12-inch fabs are being constructed at home and abroad, which opens up the opportunity for domestic sale and exports.

102

B. SWOT analysis of equipment manufacturing

Strength Weakness
A.Domestically-made equipment costs less
than those made in the United States,
Europe, or Japan
B.Being well experienced in process
technologies enables the development of
equipment which can satisfy customers
process requirements.
C.With mature precision technology, domestic
equipment manufacturers can quickly come
in on the semiconductor and optoelectronic
product lines.
D.Domestic market has scaled up.		 A.There is a lack of capability for verifying the
process involving high-precision
semiconductor equipment; therefore, the
opportunity for winning an order in this
regard is nimble.
B.The high-tech semiconductor process
equipment is an oligopoly market
comprising foreign original manufacturers,
which creates an entry barrie.
C.R&D fund is less sufficient relative to that of
foreign original manufacturers.
Opportunities Threats
A.Possession of a stable customer base and a
good understanding of the process
technology and equipment makes it easier to
win business.
B.Domestic equipment industry is trending
towards large size, localization, and
customization, which is conducive to
domestic manufacturers’ developing
business.
C.The technology and experience derived from
acting as an agent for the various lines of
products makes it easier to provide
customers with total solutions.
D.Having a customer base and experience in
original equipment and process equipment
facilitates the development of other business,
e.g., used machines, plant-wide machine
relocation, or maintenance of old equipment.
E.12-inch fabs are being constructed at home
and abroad, which opens up the opportunity
for domestic sale and exports.		 A.The rise of Korean and Chinese equipment
manufacturers poses a risk of price war.
B.Technologies in the equipment industry are
transitioning to another generation, posing a
great challenge to research and development.

103

C. A SWOT analysis of wafer reclaim

Strength Weakness
A.Domestic transportation is less costly than
that in Europe or Japan.
B. Being local is being advantageous, in that
the Company can help customers improve
the turnover efficiency of reclaimed wafers
and lower the inventory cost thereof.
C.Possession of a good advanced process
capacity makes it easier for the Company to
win orders of advanced process.		 A.Equipment is being depreciated and
amortized.
Opportunities Threats
A.The world’s largest wafer reclaim customer
is in Taiwan.
B.The constant growth in the capacity of
advanced process constantly drives up the
demand for wafer reclaim.
C.The Company’s long-term engagement in the
agency business is conducive to developing
overseas markets.		 A.The excessive capacity of wafer reclaim
plants in Europe and Japan might pose a risk
of price war.
B.Competitors keep expanding their capacity.

(5) Market shares

A.Major competitors

Being a supplier of professional process equipment for the semiconductor/LED/solar energy/FPD industries, the Company has some major competitors, which are mainly foreign manufacturers, domestic agents, and domestic equipment manufacturers. Of them, some are TWSE- or TPEx-listed companies such as MARKETECH, Hansol IONES, CONTREL, GRAND PROCESS, Manz, AMPOC, TOPCO, KINIK, UTECHZONE, Hermes Microvision, and HERMES-EPITEK. However, since the semiconductor/LED/solar energy/FPD industries involve a wide range of expertise, each of the said companies focuses on different industry and provides different equipment and services. Given so, the Company differs from the said companies in terms of capital and operational scale.

B. Competitors’ market share

Each of the semiconductor/LED/solar energy/TFT-LCD industries involves extensive areas of expertise, comprises domestic manufacturers and the giant counterparts in Europe, US, and Japan, and has an enormous market size. Currently, no creditable statistics about them are available. However, the Company believes that its own market share for the time being is relatively small.

104

C. Technology and R&D Overview

In 2024, SCIENTECH proposed 12 patents at home and abroad and obtained 18 patent certificates. At the end of 2024, it still held 185 valid patents.

  • (1) A listing of research and development expenditures as well as technologies and/or products successfully developed during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report.

  • A. A listing of research and development expenditures during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report

Unit: NT$thousand;%
Item 2024 Jan. 2025 – Mar. 2025
Research and development
expenses		 377,553 110,241
Ratio to net operatingincome(%) 3.90 3.92

  • Note: The data for 2024 were audited by CPAs; the data covering January 2025 through March 2025 were reviewed by CPAs.

  • B. A listing of technologies and/or products successfully developed during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report

Since 2004 the Company has been investing R&D expenditures and developing and innovating technologies to intensify the marketing of existing lines of products and create products under its private brand. Below is a summary of the R&D results in the most recent year achieved by the equipment manufacturing division:

Year Industry category Product Name R&D Content
2024 Semiconductor
equipmen		 EUV Pellicle cleaning equipment 1.Pellicle transfer technology
2.Pellicle process chamber control technology
3.Pellicle drying process technology
Computer vison assistant by AI
Software		 1.Residual glue detection after the process
2.Wafer shift detection duringtheprocess
Optimized scheduling control software
system		 1.Application of single wafer process equipment
2.Application of wet Benchprocess equipment
12-inch High carrying capacity
transfer system for CoWoS/SoIC
process		 1.Application of single wafer process equipment
2.Application of wet Bench process equipment
12-inch advanced packaging Solder
cleaning and etching equipment		 1.Recirculation pipeline control system
2.Crystallization Prevention and Suppression
Technology
2023 Semiconductor
equipment		 12-inch Silicon photonics wafer
cleaning equipment		 1.Chemical in-line mixing control technology
2.Multi-chemical control technology on the
chamber
6-inch SiC single wafer cleaning and
etching equipment		 1.6-inch wafer edge gripper mechanism
2.High concentration/high temperature chemical
control technology
12-inch etch stop layer wafer cleaning
and etching equipment		 1. Prevention contamination and control
solution of toxic gas reactant in the process
2.Nozzle technologyfor specialprocess
12-inch CoWos advanced packaging
cleaning and etching equipment		 1.Development the low particle control for
process chamber area
2.Development of process parameter
management and automated communication
technology

105

Year Industry category Product Name
R&D Content
O3 and functional water for mask wet
process cleaning equipment		 1.Development the UV 172&254nm module
2.Development the double-side mask cleaning
and conveying mechanism
3.Development of functional water piping
system control technology
2022 Semiconductor
equipment		 12" Single wafer frame type cleaning
equipment		 Frame type holder spin control system and
integrated transfer equipment
Batch type etching and cleaning
equipment for 8”/12” wafer and
210*212 mm square wafers		 1.Multi-size & batch type transfer system
2.Multi-size & batch type process control system
Single-wafer flux cleaning equipment
for12" wafer and 210*212 mm square
wafer		 1.Square and circular holder spin control system
and integrated transfer equipment
2.Square and circular spinprocess control system
6” SiC Laser Deboning equipment 1. 6” SiC transfer system
2. Laser deboningcontrol technology
2021 Semiconductor
equipment		 High-cleanness photoresist striping
and cleaning equipment for low-
particleprocess.		 Low particle and high-efficiency flow field
control technology
Automated high temperature baking
oven and transfer system.		 Integrated vertical and horizontal automatic
transfer system for batch type oven
Single-wafer low-temperature wet
process equipment.		 Thermoelectric cooling module for control
system
Low-particle single type 6” & 7” mask
wet process cleaning equipment.		 1.Low particle and high-efficiency flow field
control technology
2.Single type transfer and 6&7 inch combine
process system
Single-wafer horizontal immersion-
etchingwetprocess equipment.		 12-inch single-wafer immersion and spin
process control module
Etching and cleaning equipment for 6
inch quartz oscillator batch type.		 1.Batch type etching system for uniformity
control
2.Multi-wafer size transfer system
2020 Semiconductor
equipment		 Single glass wafer wet process
equipment.		 510*515mm square glass wafer chamber
development
4-inch & 6-inch LED process
equipment development.		 Single-wafer etching and cleaning automatic
equipment for low-speed spinprocess
12-inch single wafer final cleaning
equipment.		 Automation equipment for particle-free process
within mega-sonic cleaning
8 inch/12 inch wafer photoresist
stripingand cleaningequipment.		 Automation equipment for organic solvent
cleaning process
Wafer recycling process equipment for
12” batch type.		 Automated particle-free process and transfer
equipment

In addition, below is the Company’s R&D achievements in wafer reclaim:

Year Industrycategory Product Name R&D Content Product Applications
2024 SEMI/LED/Power /RF 1.Test/ Reclaimed
Silicon wafer
2. SiC wafer		 1.Advanced process
technology
development for
A.Wafer polish process
capability.
B.Wafer clean process
capability.		 1. Monitor wafer for
2. Advanced process.
3. Power semiconductor
RF components
2023 SEMI/LED/Power /RF 1.Test/ Reclaimed
Silicon wafer
2.SiC wafer		 1. Advanced process
technology
development for
Wafer polish
process capability.
2. Wafer clean
process capability.		 1. Monitor wafer for
advanced process.
2. Power semiconductor
RF components

106

Year Industrycategory Product Name R&D Content Product Applications
2022 Semiconductor/LED/Power
Components/RF
Components		 1.Si wafer reclaim and
test wafer
2. SiC wafer		 1. Development of
wafer polishing and
cleaning technology
2. Development of SiC
wafer process
technology (in
progress); application
and development of
SiC wafer defect
detection technology;
development of SI.-
SiC wafer process
technology.		 1. Advanced
semiconductor
process monitoring
2. Power semiconductor
3. Communication
components
2021 Semiconductor/LED/Power
Components/RF
Components/Automotive
Electronics		 1.Si wafer reclaim and
test wafer
2. SiC wafer
3. Development of
process technology
for ceramic materials
dedicate to
semiconductor
process		 1. Development of
wafer polishing and
cleaning technology
2. Development of SiC
wafer process
technology (in
progress); application
and development of
SiC wafer defect
detection technology;
development of SI.-
SiC wafer process
technology.
3. Ceramic wafer
process technology,
and quality
improvement therein,
for semiconductor
process		 1. Advanced
semiconductor
process monitoring
2. Power semiconductor
3. Communication
components
4. Automotive
electronics
2020 Semiconductor/LED/Power
Components/RF
Components/ Automotive
Electronics		 1.Si wafer reclaim
2.SiC/GaN on SiC
wafer reclaim
3. Development of
process technology
for ceramic materials
dedicate to
semiconductor
process		 1. Development of
wafer polishing and
cleaning technology
2. Development of SiC
wafer process
technology (in
progress); application
and development of
SiC wafer defect
detection technology.
3. Ceramic wafer
process technology,
and quality
improvement therein,
for semiconductor
process		 1. Advanced
semiconductor
process monitoring
2. Power semiconductor
3. Communication
components
4. Automotive
electronics
  1. Long-term and short-term business development planning

(1) Short-term business development plan

Summary of the Company's short-term plans is as follows:

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A. Marketing strategy

  - (A) Provide a Total Solution (including equipment and process technology) for the process needs of various industries.

  - (B) Continuously improve customer satisfaction (CS), including machine capability, service quality and process technology.

  • B. Product strategy

    • (A) Semiconductor/LED/LCD/solar energy: actively participate in customers' early-stage research and development plan in order to jointly develop related machine equipment.

    • (B) Develop related materials and equipment for potential green energy industries in the future.

    • (C) Develop distribution of new product lines and introduce higher-level manufacturing processes and measurement equipment.

  • C. Operations management strategy

    • (A) Reinforce ERP, internal audit and internal control and other related systems to improve management performance.

    • (B) Improve the quality of personnel through continuous education and training programs.

    • (C) Introduce KPI and PBC management to improve personnel capabilities.

    • (D) Departments of distributorship and manufacturing incorporate the use of and implement ISO systems.

  • D. Financial strategy

    • (A) Effective management of A/R and inventory.

    • (B) Establish a long-term cooperative relationship with banks.

  • (2) long-term business development plan

  • A. Marketing strategy

    • (A) Elaborate on the use of the existing human resources, expand business growth, establish a remote ERP system gateway and strengthen the network connection of regional service offices to facilitate the provision of on-time customer services.

    • (B) Provide customers with complete and professional services, establish technical support personnel for application equipment and technology and add products and services to expand the scale of operations.

    • (C) Accumulate customer bases in different industries and establish long-term cooperative relationships.

    • (D) Seize opportunities for collaboration and development with customers and continuously improve quality and service with high efficiency and reasonable price to establish longterm cooperative relationships.

    • (E) Expand to other high-tech industries with the advantages in the current semiconductor industry. Based on the strong foothold in the field of semiconductor production equipment distribution, we extend the breadth and depth of the product line we distribute and professional services we provide and introduce new products needed in response to the changing market trends.

  • B. Product strategy

    • (A) From the current mid-tier wet process equipment to high-end wet process equipment developed in-house.

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  • (B) Work with domestic clients to improve R&D capabilities and co-develop high-end process equipment as an alternative to similar products from Japan and the US.

  • (C) Expand to the non-silicon wafer market based on the developed silicon wafer reclaim technology.

  • (D) Establish strategic alliances with foreign manufacturers through distributorship and import advanced equipment and technology.

  • (E) Reinforce the research and development of green energy materials and equipment.

  • (F) Develop more applications for the products distributed and effectively integrate system resources.

  • C. Operations management strategy

  • (A) Regular training program for employees to enrich the Company's human resources.

  • (B) Provide a friendly work environment, employee benefit and management system and corporate culture to improve the cohesion.

  • D. Financial strategy

  • (A)Improve the Company's overall financial planning to reduce operational risks and enhance competitiveness.

  • (B)In addition to creating profits through operating activities, adopt bank borrowings, cash capital increase and issue of bonds to meet the working capital needs for future operations.

II. An analysis of the market as well as the production and marketing situation

  1. Market analysis

  2. (1) Geographic areas where the main products (services) of the company are provided (supplied):

The Group’s main lines of products mainly include the manufacturing and agency sale of semiconductor/LED/packaging and testing/TFT-LCD equipment. The geographic areas to which the Group sold products in the most recent three years are as follows:

Unit: NT$ thousand; %

2022 2022 2023 2023 2024 2024
Year
Percentage Percentage Percentage
Regions Amount Amount Amount
(%) (%) (%)
Domestic sale 2,343,617 41.48 2,264,475 32.76 3,970,027 40.98
Export 3,306,369 58.52 4,647,506 67.24 5,718,253 59,02
Net operating
income		 5,649,986 100.00 6,911,981 100.00 9,688,280 100.00

Note: The said export destination includes Asia, Americas, and other regions.

(2) Market shares

  • A. Major competitors

Being a supplier of professional process equipment for the semiconductor/LED/solar energy/TFT-LCD industries, the Company has some major competitors, which are mainly foreign manufacturers, domestic agents, and domestic equipment manufacturers. Of them, some are TWSE- or TPEx-listed companies such as MARKETECH, Hansol IONES, CONTREL, GRAND PROCESS, Manz, AMPOC, TOPCO, Hermes Microvision, and HERMES-EPITEK. However, since the semiconductor/LED/solar energy/FPD industries involve a wide range of expertise, each of the said companies focuses on different industry

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and provides different equipment and services. Given so, there are few TWSE- or TPEx-listed companies which compete with the Company for the same industry and provide the same process equipment (services); there are only a few overlap products.

B. Competitors’ market share

Each of the semiconductor/LED/solar energy/TFT-LCD industries involves extensive areas of expertise, comprises domestic manufacturers and the giant counterparts in Europe, US, and Japan, and has an enormous market size. Currently, no creditable statistics about them are available. However, the Company believes that its own market share for the time being is relatively small. One thing worth mention is that the Company currently has a market share of about 20% in the wafer reclaim market.

  • (3) Demand and supply conditions for the market in the future, and the market's growth potential

The supply and demand status and future growth potential of the wafer reclaim market and semiconductor/LED/TFT-LCD equipment suppliers are closely related to the development of the semiconductor industry and the scale of the TFT-LCD and LED markets. In addition, the wafer reclaim market is also closely related to the wafer reclaim OEM market. The following is a description of the supply and demand and potential of the semiconductor/TFT-LCD/ LED markets in the future:

A. Semiconductor

IDC predicts that the global semiconductor market will continue to grow in 2025, with an annual growth rate expected to exceed 15%, mainly driven by the continued increase in demand for AI (artificial intelligence) and high-performance computing (HPC).

ASML CEO Christophe Fouquet predicts that the global semiconductor market will grow at an annual rate of 9% by 2025, driven by surging demand for AI chips, and will exceed $1 trillion by 2030.

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  • B. Advanced packaging

  • According to data from Yole Intelligence, the global advanced packaging market is projected to grow from $42.9 billion in 2022 to $78.6 billion in 2028, with a compound annual growth rate (CAGR) of approximately 9%. This indicates a steady growth trend in the market through 2025. By 2027, the CoWoS industry is expected to achieve a CAGR of 10%, accounting for more than 50% of the overall IC packaging market, thereby becoming the mainstream packaging technology

==> picture [363 x 198] intentionally omitted <==

According to a report by Mordor Intelligence, the market size is expected to grow from US$32.59 billion in 2024 to US$54.69 billion in 2029, with a compound annual growth rate of 10.91%.

  • C. Compound semiconductor

According to a report by market analysis firm Yole Group, the compound semiconductor device market is growing rapidly, from US$12 billion in 2024 to US$25 billion in 2030, with a compound annual growth rate (CAGR) of nearly 13%, outpacing the broader semiconductor market.

D. LED industry

According to a report by Mordor Intelligence, the LED lighting market size is expected to grow from US$111.57 billion in 2024 to US$191 billion in 2029, with a compound annual growth rate of 11.35%.

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(4) Competitive niche

  • A. Having been engaged in the semiconductor and optoelectronic industries for nearly 40 years, SCIENTECH has accumulated not only a wide range of equipment functions and experience and a pool of technicians, but also customers’ connections in the industry and information on customers’ equipment requirements. We have a good grasp of the most up-to-date key technologies and equipment, as well as customers’ requirements, which facilitates the development and promotion of business. Meanwhile, an existing customer base and a connection with the principals are also helpful for startups to develop their business.

  • B. SCIENTECH acts as an agent for more than 50 product lines, which are mainly used in industries such as the semiconductor, optoelectronics, testing, packaging, and chemical analysis instruments. Such dispersion of customers across multiple industries helps mitigate the risk of economic fluctuation in a single industry.

  • C. Domestically, SCIENTECH has set up a customer service center in northern, central, and southern Taiwan, which operates 24/7 on call and is always ready to serve customers. Abroad, SCIENTECH has also made hefty investment, seeking to serve customers nearby.

  • D. Having been engaged in the semiconductor industry for more than 30 years, SCIENTECH has accumulated more than 25 years of experience in providing total solutions in areas such as the wet process, wafer defect detection, and chemical analysis, and thereby is internationally competitive in terms of “Equipment Manufacturing” and “Wafer Reclaim Service”.

  • E. With rich resources and experience in the industry, SCIENTECH is more likely to attract principals who are seeking an agent for their products. This is helpful for SCIENTECH to win the agentship for new product lines.

  • F. SCIENTECH acts as both an agent and an equipment manufacturer, capable of tailoring to customers’ needs.

  • (5) Favorable and unfavorable factors in the long term

  • A. Favorable factors

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  • (A)Involvement in multiple strategic tech industries in Taiwan

The Company’s products, either self-made or sold under an agentship, are used in multiple industries such as the semiconductor, optoelectronics, testing, packaging, solar energy, and chemical analysis instruments, all of which are strategic industries that feature a steady growth, which is conducive to sales.

  • (B)Exceptional sales team and R&D team

Having worked in this field for long, the Company’s sales team, customer service team, and the R&D team are well experienced in the manufacturing of equipment and machinery. They also accumulated a considerable customer base and connections in the industry as well as information on customers’ equipment requirements. This is conducive to the R&D of machinery and equipment and enables the Company to satisfy customers’ custom requirements.

  • (C)Quick, real-time, efficient services

    • Domestically, the Company has set up customer service center in northern, central, and southern Taiwan, which operates 24/7 on call and is always ready to serve customers. Abroad, SCIENTECH has also made hefty investment, seeking to serve customers nearby and provide quick, real-time services.

  • B. Unfavorable factors and response measures

  • (A)Constant, heavy expenditure of funds is required for being competitive.

The Company operates in the high tech industry, a technology-intensive industry. To keep pace with the technological growth and innovation in the market requires the Company to constantly pour R&D funds and cultivate own R&D team.

Concrete response measures:

Aside from analyzing market conditions and thereafter reviewing the analysis, the Company will also always attend to the product and technological trend as well as any specifications update in the market, so as to correctly forecast the market demands. Aside from entitling employees to common share subscription and treasury shares, which is already in place, the Company also plans to offer further incentives such as employee stock options in order to attract professional talent, besides, to strengthen the company's ability to raise funds in the capital market to maintain the high competitiveness.

Bundles of thriving agents and suppliers intensify market competition.

An agent’s profitability depends on the quality of the principals for which they act as an agent, and on the competition among peers. In recent years, a plenty of semiconductor companies and agents has sprouted; the products under agentship, though of different brands, are quite homogeneous and therefore substitutable, leading to a price war, thus shrinking the profit margin.

Concrete response measures:

The Company adopts a dual-track policy, that is, acting as an agent and a manufacturer at the same time. On the agency business front, the Company will continue to look for the agentship for products with great potential, diversify product lines, as well as the industries wherein it operates, and refrain from focusing on few products or a single industry; doing so can increase the operating revenue and lower operating risks. Furthermore, the

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Company will enhance customer relations and provide premium services so as to win the trust from suppliers and customers. This way, it is helpful for the Company to win orders.

  1. Main use of major products and their manufacturing processes

  2. (1) Main use of major products

  3. A. Equipment Manufacturing: Equipment includes batch type and single-wafer wet process equipment for the following fields, and is mainly used for cleaning, etching, and photoresist stripping.

    • (A)Semiconductor Front-End Process

    • (B)III-V semiconductor front-end process and process update (as a substitute for imported machines from the United States and Japan)

    • (C)12” and 8” Advanced Package: Bumping/WLP/Fan-out/SiP/TSV/2.5DIC/3DIC

    • (D)Micro Electro Mechanical Systems (MEMS)

    • (E) Fully automated HB LED front-end process for backlight and lighting

  4. B. 12” wafer reclaim: The wafer reclaim service denotes the process of restoring the cleanness and flatness of a Test Wafer and Dummy/Control Wafer used in semiconductor manufacturing process to the level of cleanness and flatness characteristic of a brand new Test Wafer and Dummy/Control Wafer, typically by means of sorting, cleaning, lapping, polishing, and drying, so that they can be used as a Dummy/Control Wafer again. Wafer reclaim mainly aims to reduce the overall cost in comparison to using brand-new Test Wafer and Dummy/Control Wafer every single time.

  5. C. Equipment under agentship: The Company provides process equipment for the following fields.

    • (A)Process equipment and measurement equipment for the semiconductor/panel/LED industries

    • (B)Biotech and chemical analysis instruments

    • (C)3D Printing equipment

    • (D)Battery industry

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  • (2) Manufacturing processes of major products

  • A. Equipment and machinery

==> picture [464 x 567] intentionally omitted <==

----- Start of picture text -----

Customer requirements
Confirm requirements
Experimental test
Set engineering specifications Apply for patents
Machine design
Machine outsourcing
Test by customers
Machine assembly
Machine test
Delivered and accepted
----- End of picture text -----

115

B. Wafer reclaim

==> picture [214 x 653] intentionally omitted <==

----- Start of picture text -----

Sorting
Stripping
Lapping
Acid Etch
Polishing
Pre - Clean
Inspection
Final - Clean
Surface Evaluation
Packaging
----- End of picture text -----

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  1. Supply status of main raw materials

  2. Raw materials for products under agentship are provided by foreign principals; raw materials for self-made equipment are provided by suppliers at home and abroad. So far, there is no short supply of raw materials.

  3. A list of any customers accounting for 10 percent or more of the company's total procurement (sales) amount in either of the 2 most recent fiscal years, the amounts bought from (sold to) each, the percentage of total procurement (sales) accounted for by each, and an explanation of the reason for increases or decreases in the above figures.

  4. (1)A list of any customers accounting for 10 percent or more of the company's total sales amount in either of the 2 most recent fiscal years, the amounts sold to each, the percentage of total sales accounted for by each.

accounted for by each. accounted for by each. accounted for by each. accounted for by each. accounted for by each. accounted for by each. accounted for by each.
Unit: NT$ thousand; %
2023 2024 Year-to-date through March 31, 2025
Item Name Amount Ratio to annual
net sales (%)		 Relationship
with the issuer		 Name Amount Ratio to annual
net sales (%)		 Relationship
with the issuer		 Name Amount Ratio to net sales
for the three-
month period
ended March 31,
2023		 Relationship
with the issuer
1 TSMC 928,807 13.44 None TSMC 2,036,490 21.02 None TSMC 767,594 27.28 None
2 Others 5,983,174 86.56 - Others 7,651,790 78.98 Others 2,045,936 72.72
Total net
sales		 6,911,981 100.00 Total
net sales		 9,688,280 100.00
Total net
sales
2,813,530		 100.00
Note: The data for the years 2023 ~ 2024 has been audited and attested by CPAs; the data for the period Jan.
2025 to Mar. 2025 has not yet been reviewed by CPAs.
An explanation of the reason for increases or decreases in the above figures:
TSMC is the Group’s long-time customer. Transactions with TSMC mainly gives the Group machine
sales revenue, equipment and parts sales revenue, and wafer reclaim service revenue. Due to the
increase in the number of machine sales in 2024, the sales revenue in 2024 was NT$2,036,490, a
increase of NT$1,107,683 thousand from the NT$928,807 thousand in 2023.
(2)A list of any suppliers accounting for 10 percent or more of the company's total
procurement amount in either of the 2 most recent fiscal years, the amounts bought from
each,thepercentage of totalprocurement accounted for byeach
Unit: NT$ thousand; %
2023 2024 Year-to-date through March 31,2025
Item Name Amount Ratio to annual net
purchase (%)		 Relationship with the
issuer		 Name Amount Ratio to annual net
purchase (%)		 Relationship with the
issuer		 Name Amount Ratio to net purchase for
the three-month period
ended
March 31, 2023		 Relationship with the
issuer

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1 K-T 3,218,879
36.76		 None K-T 1,867,290 22.64 None K-T 346,618 16.98 None
2 NOVA 1,583,727
18.09		 None NOVA 1,189,446 14.42 None NOVA 353,892 17.34 None
3 PLASMA 906,374
10.35		 None PLASMA 495,045
6.00		 None PLASMA 70,615 3.46 None
4 Others 3,046,491
34.80
-		 Others 4,696,973 56.94
-		 Others 1,270,173 62.22
Total net
purchase		 8,755,471 100.00 Total net
purchase		 8,248,754 100.00 Total net
purchase		 2,041,298 100.00

An explanation of the reason for increases or decreases in the above figures:

K-T: The Group is an agent for K-T semiconductor equipment. Manufacturing equipment and machinery is expensive. Such equipment is mainly used by semiconductor fabs as production equipment. Due to decreased customer demand and local brand competition in 2024, the purchase amount for 2024 and 2023 was NT$1,867,290 thousand and NT$3,218,879 thousand, respectively.

Nova: The Group is an agent for Nova semiconductor equipment. Manufacturing equipment and machinery is expensive. Such equipment is mainly used by semiconductor fabs as production equipment. Due to decreased customer demand and local brand competition in 2024, the purchase amount for 2024 and 2023 was NT$1,189,446 thousand and NT$1,583,727 thousand, respectively.

PLASMA: The Group is an agent for PLASMA semiconductor equipment. Manufacturing equipment and machinery is expensive. Such equipment is mainly used by semiconductor fabs as production equipment. Due to decreased customer demand and local brand competition in 2024, the purchase amount for 2024 and 2023 was NT$495,045 thousand and NT$906,374 thousand, respectively.

Other sales mainly come from the agency business of chemical analysis instruments, of which the domestic sales and exports combined reached NT$79,716 thousand and NT$77,824 thousand in 2024 and 2023, respectively; the sales amount for 2024 in this regard didn’t change much from the 2023 level.

III. Employees

The number of employees employed for the 2 most recent fiscal years, and during the current fiscal year up to the date of publication of the annual report, their average years of service, average age, and education levels

March 31, 2025

Year 2023 2024 As of March 31, 2025
Number of
employees		 R&D personnel 135 157 157
Sales personnel 308 367 390
Administrative personnel 92 89 86
Manufacturing personnel 276 318 329
Total 811 931 962
Average age 37.25 37.84 38.14
Average service tenure (year) 6.58 6.54 6.41
Education
distribution
percentage
(%)		 PhD 0.86 0.75 0.62
Master degree 13.07 14.39 13.51
College diploma 74.97 74.87 75.26
Senior high school 10.36 9.24 9.88
Below senior high school 0.74 0.75 0.73

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IV. Environmental protection expenditure

Any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to environmental pollution incidents (including any compensation paid), the amount of penalties, and disclosing response measures to be taken (including improvement measures) and an estimate of possible expenses that could be incurred (including the would-be loss had no response measured were taken, an estimate of the amount of penalties and compensation; if a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided): None.

V. Labor relations

  1. List any employee benefit plans, continuing education, training, retirement systems, and the status of their implementation, and the status of labor-management agreements and measures for preserving employees' rights and interests

  2. (1) Employee benefit measures

  3. The Company purchases group medical insurance for each employee, and has set up an employee welfare committee to carry out various employee welfare measures, e.g., share dividends, treasury shares, festival gifts, wedding and funeral subsidies, annual employee tour, and health checks, etc. Having formulated internal regulations for management of employee clubs, the Company encourages their participating in club activities, organizes family days, and other ball-based sports events, so as to enhance their cohesion let them relax. The Company has also set up a medical center, arranges for doctors to give diagnosis within the factory, hires licensed nurses, holds weight-loss activities and health seminars, and provides trainings on emergency medical assistance such as CPR. The Company also offers services that come in handy for female workers, e.g., a breastfeeding room, parking spaces reserved for female workers and pregnant workers. Contracting with kindergartens as preferred venders to offer employees’ children tuition discounts and other humand resources policies. None of the Company’s personnel policies discriminates on the basis of race, color, age, gender, sexual orientation, ethics, disability, pregnancy, religion, political affiliation, membership in a society, marital status, and so on. In addition, as required by law, the Company offers maternity leave, paternity leave, and parental leave.

  4. (2) Continuing education and training

To achieve the Company’s goals means to cultivate employees at different level in a way that can fully develops their occupational competencies and improves their work efficiency. To do so, the Company has formulated the “Regulations Governing Employee Education and Training” to provide a basis for all work related to employee training and education. Below are the internal education and training courses that the Company held in 2024, which costed the Company NT$1,771 thousand:

Below is the information on the Company’s external training courses in terms of cost, hours, and number of trainees in 2024.

Item Number of trainees - total
Number of trainees		 Training hours
Training held by an institution contracted by
the Company		 263 187 2578
Internal training 7,608 899 13,134.25
Trainingfor directors 23 9 69
Trainings on the regulations for accounting,
audit,and securities		 13 5 73

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  • A The training courses for directors include : “Global Economic Outlook”, “Integrity Business Practices and Insider Trading”“ Introduction to generative AI and industrial application examples”, “How does the board of directors ensure the sustainable operation of the enterprisefrom the discovery and cultivation of talents” “Refresher Course for Listed Directors - Board of Directors vs. Management Team” “Strengthening Taiwan Capital Market Summit”, “Performance evaluation practices related to corporate "ESG sustainability" and "risk management", “Sustainable development of enterprises and international trends in corporate governance”. One of the directors participated in a 3-hour course on ethical management, insider trading prevention, and anti-corruption. Other professional courses include global economic outlook, technology knowledge, talent cultivation and succession team, corporate governance and sustainable development, etc., with a total of 9 directors, 23 participants and 69 hours of courses

  • B. Internal training includes the monthly orientation training courses for employees, which were participated by 1984 people for a total of 4,306 hours; such training courses cover various subjects as to integrity management, business secret protection, information security policy, intellectual property management policy, workplace violence/sexual harassment, labor safety education and training, and ESH policies, etc.

  • C.The internal training includes a course that provide the knowledge about the Ethical Corporate Management Best Practice Principles at workplace (including prevention of insider training) and illegal infringement, which was participated by 775 people for a total of 1,395.5 hours.

  • (3) Retirement systems, and the status of their implementation

  • As required by the Labor Standards Act, the Company has established retirement plans for fulltime employees. The Company makes a monthly pension contribution in the amount equal to 3% of an employee’s salary to a dedicated account with the Bank of Taiwan. Starting from July 1, 2005, the date on which the Labor Pension Act became effective, the Company simultaneously implemented the new pension scheme under the act and thereby started making a monthly contribution in the amount equal to 6% of an employee’s monthly salary to the employee’s personal pension account. For employees having elected to contribute an additional share of their salary to their pension account, the Company will debit such an additional share of their salary to their pension account on their behalf. According to the Company’s internal regulations, pension payment depends on the employees’ years of service and the average amount of their monthly salary for the six months preceding their retirement date.

  • According to the Labor Standards Act and the Company’s internal regulations that offer a retirement plan that is more appealing than the one required by law, Employees qualified for either of the following criteria may apply for voluntary retirement:

  • A. Those who have worked for 15 years or more and attained the age of 55 or more; or those who have worked for 10 years or more and attained the age of 60 or more.

  • B. Those who have worked for 25 years.

  • C. Those who have been with the Company for 15 years or more and attained the age of 50 or more.

  • D. Those whose years of service with the Company plus his/her age reaches or exceeds 60.

2. Criteria for pension payment are as follows:

The criteria for pension payment are based on Article 55 of the Labor Standards Act, which specifies the criterial for pension payment; Article 84-2 of the Labor Standards Act, which stipulates that employees’ years of service be counted starting from the date of employment; and

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Article 67, Paragraph 1, Subparagraph 2 of these Regulations, which stipulates an additional 20% pension payment to employees who are forced to retire due to their mental or physical disability that is caused by their performing their duties. The standards of severance and retirement benefit for the seniority accumulated before the application of the Labor Standards Act shall be calculated in accordance with the applicable acts and administrative regulations effective during that time. In cases there were no applicable Acts and administrative regulations, these standards shall be calculated in accordance with the rules promulgated by the Company or the agreements reached by employees and the Company.

  • A. Retirement bases: Two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base is given for each full year of service rendered. One base is given for each full year of service rendered before the application of the Labor Standards Act on March 1, 1998. However, the total number of bases shall be no more than 45. The length of service is calculated as half year when it is less than six months and as one year when it is more than six months.

  • B. Payment due date: The Company shall pay employees the pension payables within 30 days from the day of retirement.

  • C. 6% of the insured monthly salary of employees to which the Labor Pension Act applies is allocated to their personal pension account.

  • (4) Labor-management agreements and measures for preserving employees' rights and interests:

The Company’s labor-management relations have been harmonious, and the Company has been attaching importance to bilateral labor-management communication and thereby forging good labor-management relations, so there has been no major labor dispute so far.

  • A. The Company has established an employee complaint filing channel to improve labormanagement relations

  • B. The Company has formulated the Work Rules and other personnel regulations, which specify the rights and obligations of employees and employers as well as any management approaches therefor, so that employee can fully understand, and thus be able to maintain, their own rights.

  • C. As required by the Occupational Safety and Health Act, the Company regularly arranges for employees to have a health check. In addition, the Company has assigned labor safety and health personnel and formulated the various labor safety and health regulations to prevent incidents from happening, thereby ensuring employees’ safety.

  • D. Incentive for innovation: Aside from formulating the rewards and disciplinary regulations, the Company also offers incentives for employees to propose improvement plans. In this way, employees are encouraged to spot any anomaly at work and come up with an improvement plan. They will be given monetary rewards depending on the effectiveness of the improvement plan being implemented.

  • List any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to labor disputes, and disclose an estimate of possible expenses that could be incurred currently and in the future and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided: None.

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  1. Employees having obtained the license issued by the competent authorities:
Title Name Name of license
Vicepresident Yi-Lin Lee Class A Occupational Safety and Health Affair Manager
Manager Tsun-Pin Liu Class A Occupational Safety and Health Affair Manager
Senior Manager Ta-Chen Lin Class A Dedicated Air Pollution Control Specialist
Senior engineer Yi-Fu Hsu Occupational Safety Management Specialist
Chief engineer Chia-Yun Su Occupational Safety and health management personnel
Deputy manager Chun Chia Huang Class B Dedicated Wastewater And Sewage Treatment
Specialists
Chief engineer Kang-Wei Tsou Class A Waste Disposal Technician
Chief engineer Kang-Wei Tsou Class A Toxic Chemical Substances Professional
Deputymanager Chun Chia Huang Class A Dedicated Air Pollution Control Specialist
Engineer in charge Chao-TengLiu Fire Prevention Manager
Deputy manager Tzu-Ling Lin ISO 9001:2008 Lead Auditor/ IRCA ISO 9001:2015
Lead Auditor

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4. The Company’s protection measures for work environment and employees' personal safety

Item Description
Implement automatic
inspection		 1. By referencing the Occupational Safety and Health Act, the Company has formulated the
E3-011 Automatic Inspection Guide, by which an inspection is carried out every two years,
annually, or monthly, to check the aerial work platforms, stackers, stationary cranes, lifts,
high-voltage electrical equipment, low-voltage electrical equipment, specific chemical
equipment or its accessories, chemical equipment and its accessories, local exhaust
devices, industrial robots, Type 2 pressure vessels, power-driven centrifugal machinery.
The inspection record is retained for 3 years to prevent occupational incidents and ensure
labor safetyand health.
2. As required by the Fire Services Act, the Company has a licensed fire prevention
equipment inspection institution inspect the fire prevention system of the factory annually;
the Companythen files the inspection results accordingly.
3. As required by the Regulations for the Certification and Filing of Building Public Safety
Inspection, the Companycarries out a buildingsafetyinspection once everytwoyears.
Accident prevention and
response measures		 1. The Company has formulated the internal regulations for accident prevention, emergency
response, and accident reporting, namely Emergency Response Procedures, Occupational
Safety and Health Work Rules for Workers, Accident and Incident Investigation Operation
Guide, and Occupational Safety and Health Management Plan, which specify the duties
and tasks for the Company’s emergency response team upon occurrence of an emergency.
The Companycarries out an emergencydrill at a fixed time every year as required.
2. Two sessions of training on fire prevention are held periodically every year; the training
results are then reported to the fire-prevention competent authorityas required.
3. As required by the Occupational Safety and Health Act, the Company has set up the
Occupational Safety Office, which takes charge of all matters relating to occupational
safety and health and comprises one Class A Occupational safety and health affair
manager, one Occupational Safety Management Specialist, and two Occupational Safety
and Hygiene Officers, which has been reported to the Occupational Safety and Health
Administration, Ministryof Labor.
4. The Company has recruited a nurse, who is responsible for the planning and
implementation of matters related to employees in terms of health education, health
promotion, and health instructions.
Health care and
management		 1. The Company offers employees an ordinary health check and a special-purpose health
check, which exceeds the legal requirements as set out by the Regulations for Labor Health
Protection. Furthermore, the health check items are also a cut above the legal requirements.
The health check results are then analyzed, assessed, managed, and preserved and
thereafter a health management will ensue. Monthly occupational physician visits are
arranged for high-risk groups in the current year, and occupational nurses conduct monthly
health managementpromotion.
2. The Company commissions an occupational medicine doctor, who is contracted to provide
labor health check services, togive diagnosis within the factoryonce in a month.
3. The Company was recognized as an excellent healthy work place by the Health Promotion
Administration and received the Badge of Accredited Healthy Workplace therefrom,
evidencingthe Company’s efforts in creatinga healthyworkplace and work environment.
4. The Company has done more than what the law requires, in that it has installed an AED
facility; it also arranges education and training on AED every year, so as to give employee
an assuringwork environment.

123

Item Description
5. The Company sets up parking spaces specially reserved for expectant mothers; this makes
it convenient for those expectant mothers close to their estimated due date to go to and
from work. Signed a contract with kindergartens to provide human resources policies such
aspreferential schoolingfor employees' children
6.. Having offered a cozy breastfeeding room for postpartum employees’ use, the Company is
awarded the FriendlyWorkplace BreastfeedingRoom certificate.
7. The company regularly organizes health-promotion seminars, CPR first aid training, blood
donation events, weight-loss activities, and other related health promotion activities, and
provides health education and care for employees.
In order to encourage employees to balance work and life, we have launched a sports and
leisure plan. Employees who participate in sports activities during their vacation can
receive supplies or competition subsidies. We hope that employees will participate in more
sports to maintain theirphysical and mental health.
8. The Company provides printed literature and information on health trends from time to
time, so that employees can fullyunderstand the latest health trends.
Work environment
monitoring		 As required by the Regulations Governing the Implementation of Labor Work Environment
Monitoring, the Company commissions a qualified work environment monitoring agency to
monitor the work environment by testing for chemical factor, physical factor etc. every six
months. Any anomaly, if indicated by the testing results, is immediately corrected and
improved to ensure the health of operators.
Maintain the
effectiveness of the ESH
management system		 1. The Company has formulated ESH policies, and continuously improve its ESH
performance through the PDCAprocess.

2. The Company has obtained the “Environmental Management System” (ISO14001: 2015)
and “Occupational Safety and Health Management System” (ISO 45001:2018)
certification. The validity period of both certifications is from Apr. 30, 2025 to Apr. 30
2028.
3. The Company is committed to achieving workplace safety and health and continuously
reducing its environmental impacts. It also sets goals every year, and continue to conduct
review and improvement to reduce risks.
Contractors’ working in
the Company’s factory		 1. According to the Contractors Safety and Health Management Manual, contractors, before
entering the factory to work, must take a safety and health training arranged by the
Company, and must pass an exam. When high-risk operation is involved, the purchase of
an employer's liabilityinsurance in the amount of 2 million or more is required.
2. Before entering the factory to work, contractors are required to fill out the “Safety Hazards
Notice for Contractors to Perform Work in the Factory” and “Contractors Coordination
Organization and Regulations”.
3. According to the Hazardous Work Permit Instructions, all hot work, elevated work,
hanging work, and confined space work must be applied for in advance, and may be
carried out onlyafter beingapproved.
4. The Company values the opinions of contractors or suppliers, in that their feedback and
suggestions are put forward for discussion at the Occupational Safety and Health
Committee meeting held quarterly, hoping to create a win-win situation for the contractors
or suppliers and the Company.
5. The Company enhanced the communication channels by setting up a bulletin board and an
SMS system, through which factory regulations and laws and bylaws are disseminated
periodicallyor irregularly.

124

Item Description
Use and management of
protective equipment		 In order to prevent occupational diseases and chemicals contact accidents, the Company has
formulated the Protective Equipment Use Instructions, which stipulate that employees wear
appropriate protective equipment during work and regularly check the serviceability of
protective equipment to avoid accidents.
Education and training 1. The Company holds educational training from time to time.
2. The Company provides employees at each level with education and training courses
tailored to specific training requirements and the Company’s goals. Such courses include
the liberal courses on business management and other professional training courses.
3. The Company provides the e-Learning platform.
4. The Company makes available classrooms for professional training, offering employees a
cozyspace.
Sexual harassment
prevention		 1. The Company has set up a sexual harassment prevention committee and a sexual
harassment prevention and correction hotline. The committee is exclusively responsible for
sexual harassment complaints and the mediation thereof.
2. The Company has formulated internal regulations for prevention and punishment of sexual
harassment, in which concrete measures for sexual harassmentprevention are specified.
Labor-management
meeting		 1. The Company has formulated the regulations for the implementation of a labor-
management meeting. In doing so, a labor-management meeting is held quarterly.
2. The labor-management meeting is an open platform where the application for, and
discussion about, all measures in relation to the work environment maybe made.
Employee engagement The company values two-way communication and ensures that all employees can freely
communicate with management about their ideas and concerns about working conditions and
management approaches without fear of discrimination, retaliation, threats, or harassment.
The Company makes available a variety of channels for employees to reflect their opinions.
In addition, at the quarterly Occupational Safety and Health Committee meeting, labor
representatives are also consulted. Doing so enhances labor-management harmony and
creates a win-win situation for both the Companyand employees.
Submission of
improvement proposals		 1. The Company has put in place an internal mechanism which offers incentives for
employees to submit any proposal pertaining to issues in relation to employees’ personal
safety protection, e.g., improvement in work environment, design of operating procedures,
and so on.
2. The Company launches factory safety and health events, in which employees are
encouraged to voluntarily submit proposals whose aim is to improve work environment
safety and reduce risks. Departments with exceptional performance are recommended at
thequarterlyOccupational Safetyand Health meeting.
Insurance/Medical
consolation money		 1. As required by law, the Company has purchased labor insurance (including employment
injury insurance) and health insurance for employees; additionally, the Company has also
paid an insurance company to provide other insurance for employees, e.g., life insurance,
casualty insurance, accident medical insurance, hospitalization insurance, and cancer
insurance.
2. Meanwhile, employees' dependents are allowed to purchase a casualty insurance, accident
medical insurance, hospitalization insurance, and cancer insurance atpreferential rates.

125

VI. Cyber-security management

  1. Describe the cyber-security risk management framework, the cyber-security policy, the specific management plan, and the resources committed to the cyber-security management, etc.

  2. (1) Cyber-security risk management structure

==> picture [462 x 244] intentionally omitted <==

----- Start of picture text -----

Information
Security
Assumed by the CEO
Organization
Coordinate the implementation
of information security
measures and work with the
Emergency Response Team to Management Audit Team Evaluate the implementation of
carry out information security Representative the information security
tasks management system
Plan and execute Information
all information Security Emergency
Implementation Response Team Take charge of responding to, and
security tasks
Team dealing with, any emergencies
occurred in the business premises,
and restoring the business premises
to the original conditions.
----- End of picture text -----

  • (2) Cyber-security policy

    • A. Enhance cyber-security awareness

    • B. Prevent data leak

    • C. Ensure business continuity

  • (3) Specific management plan, and the resources committed to the cyber-security management: The Company has introduced the Information Security Management System (ISMS), through which the Company converted each ISO 27001 control into internal, feasible management systems based on the ISO documentation hierarchy. In September 2019, the Company passed the ISO 27001 certification. Furthermore, the Company regularly reports to the Board of Directors on the status of implementation of information security management every year. The certification validity period is from Nov. 20, 2022 to Nov. 19, 2025.

  • List any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to significant cyber-security incidents, the possible impacts therefrom, and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided: None

126

VII. Important contracts

April 25,2025 April 25,2025
Item
No.		 Type of
contract		 Party Contract start date and
end date		 Main content Restrictive clauses
1 Loan
contract		 Bank SinoPac May 13, 2024 ~ May
13,2026		 Mid-term
borrowings		 Mid-term credit loans
2 Loan
contract		 CTBC Bank Aug. 16, 2024 ~ Aug.
31,2025		 Short-term
borrowings		 General credit for a short-term
credit loan and a mid-term
unsecured contract performance
guarantee
3 Loan
contract		 DBS Bank
Limited		 Oct. 2, 2024 ~ Oct. 2,
2025		 Short-term
borrowings		 Short-term credit loans
4 Loan
contract		 CTBC Bank Aug. 16, 2024 ~ Aug.
31,2025		 Mid-term
borrowings		 a mid-term unsecured contract
performanceguarantee

127

Five. Review and Analysis of the Financial Position and Results of

Operations and Risk Management

I. Financial position

Unit: In NT$ thousand

2023 2024 Difference Difference Dii
Year
Item Amount Amount Amount % escrpton
Cash and cash equivalents 4,660,977 7,014,917 2,353,940 51 Mainly due to revenue growth and profit
increase
Notes receivable and
accounts receivable		 787381 590,216 (197,165) (25) Mainly due to the proportion of machine
sales revenue increased and the advance
payment was transferred to revenue.
Inventories 9,631,247 11,625,770 1,994,523 21 Mainly due to the stocking in response to
the increase in machine orders in 2024,
and some machines were being installed
and tested but had not yet been accepted
bycustomers.
Prepayments 1,158,475 792,137 (366,338) (32) Mainly due to that the number of agency
machines in 2024 was slightly lower than
in 2023, resulting in a decrease in
prepayments to original manufacturers.
Other assets 168,835 71,242 (97,593) (58) Mainly due to a decrease in performance
bond in 2024.
Financial assets at fair
value through other
comprehensive income		 210,136 279,028 68,892 33 Mainly due to the changes in the fair
value of financial assets held for the long
term and not for sale in the short term.
Investments accounted for
usingequitymethod		 423,092 636,932 213,840 51 Maily caused by investment in
YAYATECH Co. Ltd.
Property, plant and
equipment		 1,533,603 1,634,599 100,996 7 Mainly due to the expansion of
production and other factory equipment
increases.
Deferred income tax
assets		 156,634 241,777 85,143 54 Mainly due to the larger amount of
deferred income tax arising from the
provision for inventory depreciation
losses, resulting in an increase in
deferred income tax assets.
Other non-current assets 192,467 597,123 404,656 210 Mainly due to the increase in equipment
prepaid
Short-term borrowings 296,529 563,221 266,692 90 Mainly due to the increase in the amount
of short-term loan
Contract liabilities 11,818,59
2		 14,006,118 2,187,526 19 Note 1
Notes receivable and
accounts receivable		 1,873,273 1,487,448 (385,825) (21) Mainly due to the slight decrease in the
purchase amount at the end of the period
compared with the sameperiod lastyear.
Other accounts payable 475,050 639,991 164,941 35 This is mainly due to the growth in
operating income and net profit after tax,
as well as the increase in salaries,
bonuses, and remuneration payable to
employees and directors.
Short-term warranty
provision		 53,119 85,579 32,460 61 Mainly due to the increase in machine
sales in thisperiod.
Other current liabilities 210,542 204,911 (5,631) (3) Note 1
Long-term bank
borrowings		 0 1,145,654 1,145,654 100 Mainly due to the issuance of corporate
bonds bythe Company

128

Unit: In NT$ thousand

2023 2024 Difference Difference Dii
Year
Item Amount Amount Amount % escrpton
Deferred income tax
liabilities		 134,634 315,374 180,740 134 Mainly due to the temporary difference
in the retained earnings of subsidiaries,
which led to an increase in deferred
income tax liabilities.
Lease liabilities 71,855 73,440 1,585 2 Note 1
Capital stock 803,280 803,280 0 0 Note 1
Capital surplus 685,901 917,777 231,876 34 Mainly due to the issuance of corporate
bonds bythe Company
Retained earnings 2,474,871 3,080,882 606,011 24 Mailydue to thegrowth in after-taxprofit.
Shareholders’ equity -
others		 25,201 160,066 134,865 535 Mainly due to the recognition of
exchange rate adjustments and valuation
gains on financial assets.

Note 1. : Analysis is required only for the changes in the most recent two years that reach or exceed 20% or NT$10 million.

  • Note 2.: The above-mentioned changes in accounting items have their own reasons, which are reasonable and have no significant impact on the financial operations of the Company.

II. Financial performance

II. Financial performance
Unit: In NT$1,000
Year
Changes
Item 2023 2024 Amount %
Operatingrevenue 6,911,981 9,688,280 2,776,299 40%
Operatingcost 4,705,858 6,787,607 2,081,749 44%
Operating grossprofit 2,206,123 2,900,673 694,550 31%
Realized operating grossprofit 2,201,332 2,905,827 704,495 32%
Operatingexpenses 1,483,610 1,790,278 306,668 21%
Operating profit 717,722 1,115,549 397,827 55%
Non-operating income and
142,622 161,155 18,533 13%
expenses
Netprofits before tax 860,344 1,276,704 416,360 48%
Income tax expense 210,042 349,721 139,679 67%
Netprofit after tax 650,302 926,983 276,681 43%
(I) Below is an explanation for the changes in the most recent two years that reach or exceed 20% or NT$10 million:
1. Operating income and costs, operating gross profit and realized operating gross profit: Mainly due to the recovery of
the semiconductor industry this year and the increase in demand for equipment.
2. Operating expenses: Maily due to the growth of operating income, various operating activities increase and related
operating expenses also grow simultaneously.
3. Operating income and income before taxes: Maily due to the increase in gross profit, both operating income and
income before taxes increased simultaneously.
4. Income tax expense: Mainly due to the increase in profits this year.
5. Net profit after tax: Maily due to the growth of pre-tax net profit, the net profit after tax will grow simultaneously.
(II)Expected sales volume and its basis, possible impact on the company's future financial operations and response
plans: Based on the current market conditions and future development estimates of the semiconductor, compound
semiconductor, FPD, OLED and other industries, as well as the increase in the scale of self-made equipment
operations, it is expected that revenue will show a growth trend in 2025.

129

III. Cash flow

Analysis of cash flow changes during the most recent fiscal year, corrective measures to be taken in response to illiquidity, and a liquidity analysis for the coming year:

Unit: %

Year

2023		 2024 Increase (decrease) ratio
Item
Cash flow ratio 6.82 10.16 48.97
Cash flow adequacyratio 52.02 52.31 0.56
Cash flow reinvestment ratio 14.71 19.51 32.63

Analysis of percentage increase / decrease:

  1. Cash flow ratio: Mainly due to revenue growth, pre-tax net profit increased compared to last year, resulting in an increase in cash flow ratio

  2. Cash flow adequacy ratio: There is no significant changes in this period.

  3. Cash reinvestment ratio: Mainly due to the investment in YAYATECH Co. Ltd and the expansion of production, resulting in an increase in prepaid equipment payments and the cash reinvestment ratio

ratio
Unit: In NT$1,000
Opening Balance Estimated cash
flow from		 Estimated cash Remedy for estimated
outflow for the Estimated cash
surplus		 cash shortfalls
operatingactivities year Investmentplan Financing plan
4,544,695 1,300,000 (650,000) 3,894,695 - -
(I) Analysis of the estimated cash flows for 2025
1. Operating activities: The net cash inflow is estimated to be NT$ 1,300,000 thousand as a result of a net cash inflow
from operating activities, which is mainly due to the expectation that operating revenue will continue to grow, that
collection of accounts receivable will accelerate, and that expenses will be controlled properly.
2. Investing activities: The net cash outflow is estimated to be NT$1,500,000 thousand, mainly due to the increase in
capital expenditure.
3. Financing activities: The net cash outflow is estimated to be NT$450,000 thousand, mainly due to the net cash
outflow that is used to repay bank loans and pay cash dividends, and raising convertible corporate bonds.
(II)Measures to be taken to cope with a cash shortfall and liquidityanalysis: N/A.

IV. Effect of major capital expenditures on finance and business matters in the most recent

year

The fund for the Company’s purchase of the land and plants in Tainan mainly comes from its working capital, so there is no material effect on its financials or business.

V. Investment policy for the most recent year, the main reasons for profit or loss, improvement plan, and investment plan for the coming year

1. Investment policy for the most recent year

For the purposes of managing and controlling investees, the Company has formulated the “Regulations Governing the Acquisition and Disposal of Assets”; doing so enables the Company to grasp the financials and business conditions of investees. In addition, the Company has also

130

formulated the “Regulations Governing the Monitoring of Subsidiaries” under its internal control system, so as to urge subsidiaries to formulate relevant operating procedures for their material financial and business matters; furthermore, the Company also supervises subsidiaries’ carrying out work by laws and their internal regulations, and establishes a risk management mechanism for subsidiaries, so as to maximize the operating performance.

  1. Main reasons for profit or loss in the most recent year, improvement plan, and investment plan for the coming year
Unit: NT$1,000 Unit: NT$1,000
Investment
Investment Reasons for profit plan for the
Description of item Policy Improvement plan
amount (Note) or loss following
year
Natgem Inc. 33,000 None Transition to a group
which provides
charitable services		 None None
Acromass
Technologies, Inc.		 270,000 None The integration and
R&D of hardware
and software failed to
keep up with the
market demand
trends.		 Dissolved through a
resolution.		 None
Scientech
Engineering
Corp.(Shanghai)		 USD 4,870 Increase the
penetration rate in
the semiconductor
industry in China		 Semiconductor
customers gradually
recognize the
products for which
the Company is an
agent as well as the
services and
installation
technology provided
bythe Company.		 Improve the
understanding of
products and
installation solutions
and technologies.		 None
Scientech Gmbh 10,672 Increase the
penetration rate in
the semiconductor
industryin Europe.		 New to the European
market		 Increase product
visibility		 None
Transcend Capital
Corp.		 417,289 Offshore holding
company		 profit or loss of
investees accounted
for using the equity
method		 None None
Xtek Semiconductor
(Huangshi) Co., Ltd.
USD14,268
Increase the
penetration rate in
the semiconductor
industry in China		 New to the Chinese
market		 Accelerate the trial
production and have
the products pass
customers’
certification and
shipped		 None
YAYATECH Co.
Ltd.		 215,133 Strategic alliance
increases
semiconductor
testing equipment
market.		 Market development
in Taiwan, China,
and Southeast Asia		 None Hope to
further
increase
investment
holdings

Note: Original investment cost.

  1. Investment plan in the following year: The Company plans to build factories in Hukou and Tainan for operational purposes in 2025. The source of funds will mainly be the company's existing operating funds. The amount of the construction contract will be determined after consultation and negotiation.

131

VI. Risk management, analysis, and assessment

  1. Below is the description of the following matters occurred in the most recent year or in the current year up to the publication date of this annual report:

  2. (1) The effects of interest rate change on the Group’s operating revenue and profit, and the Company’s concrete response measures therefor

  3. A. The effects of interest rate change on the Group’s operating revenue and profit The interest income of the Group in 2024 was NT$166,676 thousand and the interest expense was NT$17,875 thousand. The ratios to the net operating income were 1.72% and 0.18% respectively, which are very small, so the impact of interest rate changes on the profit and loss of the Group should be limited.

  4. B. The Group’s response measures for interest rate changes

    • The Group should enhance the management of accounts receivable, gradually reduce the amount of liabilities, and improve the financial structure, so as to minimize the interest rate risk.

  5. (2) The effects of exchange rate change on the Group’s operating revenue and profit, and the Company’s concrete response measures therefor

  6. A. The effects of exchange rate change on the Group’s operating revenue and profit

Unit: NT$1,000

Item 2023 2024
Exchange rate - appreciation/depreciation 1% 1%
Pre-tax profit decrease/increase 25,799 32,231
Net profits before tax 860,344 1,276,704
Percentage impacted 3.00% 2.52%

The Group is affected mainly by the changes in the exchange rate of US dollars. Such effects were mitigated mainly by offsetting trade payable against trade receivable. As a result, the effects of exchange rate changes on the Group’s profit were about 3.0% and 2.52% in 2023 and 2024, respectively.

  • B. The Group’s concrete response measures for exchange rate changes

    • To cope with the risks associated with exchange rate changes, the Group adopts the nature hedge strategy, that is, offsetting the trade receivable denominated in foreign currency against the purchase payable denominated in foreign currency. In addition, the Company’s finance department works closely with the Bank during the normal course of operations, and always collects the exchange rate trends, so that an agile response measure can be taken in a timely manner.

  • (3) The effects of inflation on the Group’s operating revenue and profit, and the Company’s concrete response measures therefor

  • A. The effects of inflation on the Group’s operating revenue and profit

    • In 2024 and in the current year up to the publication date of this annual report, the Group did not see its profit or loss materially affected by inflation.

  • B. The Group’s concrete response measures for inflation

The Group will continue to monitor the price change of commonalities in the upstream, so as

132

to reduce the effect of cost variation on the Group’s profit or loss.

  1. The company's policy regarding high-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses generated thereby; and response measures to be taken in the future.

  2. (1) The Group did not engage in any high risk or highly leveraged investment in 2024 or in the current year up to the publication date of this annual report.

  3. (2) The parties for which the Group made endorsement or guarantee in 2024 or in the current year up to the publication date of this annual report are the Company’s subsidiaries. Such endorsement and guarantee were made in accordance with the Company’s Regulations for Making Endorsement and Guarantee. For transaction details, refer to p.282 of the financial statements for 2024 that were attested by CPAs and p.214 of the consolidated financial statements for 2023 that were attested by CPAs.

  4. (3) The parties to which the Group loaned funds in 2024 or in the current year up to the publication date of this annual report are the Company’s subsidiaries. Such loaning of funds was made in accordance with the Company’s Regulations for Loaning of Funds to Others. For transaction details, refer to p.281 of the financial statements for 2024 that were attested by CPAs and p.213 of the consolidated financial statements for 2024 that were attested by CPAs.

  5. (4) The Group did not engage in derivatives trading in 2024 or in the current year up to the publication date of this annual report.

133

  1. Research and development work to be carried out in the future, and further expenditures expected for research and development work: The Company plans to invest about NT$445,700 thousand in the R&D in the fields of equipment manufacturing and wafer reclaim in 2025; such amount may be adjusted where appropriate depending on the actual operating and R&D status.
Estimated
time for
Current
Plan Name Description Of Plan mass Main factors for success
Progress
production
(Note)
Semiconductor
Equipment		 1. 12-inch advanced
process batch type
cleaning equipment		 Under
development		 2025 The advanced process equipment was
developed by referencing the past
experience in which the 8”/12’ advanced
process batch type cleaning equipment
that had passed the certification at the
clients’ end, and by hiring experienced
professional talent as design advisers.
2. Development of the
new-generation single-
wafer wet process
cleaning equipment		 Under
development		 2025 The equipment was developed, tailored
to customers’ process requirements by
referencing the user experience with the
12” single-wafer process equipment in
the past, and by incorporating the
technologies
newly
developed
by
suppliers.
3. Next-generation wafer
and glass temporary
bonding/debonding
process equipment		 Under
development		 2025 The equipment was developed by taking
into
account
the
requirements
of
advanced packaging customers, by
leveraging the priority right to enhance
prior art, and by considering the
properties of the materials employed.
4. Square wafer hanger
type electroplating
process equipment		 Under
development		 2025 The design was optimized by referencing
the user experience with the single-wafer
and batch type process equipment in the
past, and by considering customers’
process requirements; this will enable the
Company to satisfy advanced packaging
customers requirements for the various
sizes of square wafer.
5. Mask process cleaning
equipment		 Under
development		 2025 Developing customized solutions based
on customers’ process needs,
collaborating with the customers to
verify feasibility, and ultimately
integrating with the customers’ existing
device technolog

134

Estimated
time for
Current
Plan Name Description Of Plan mass Main factors for success
Progress
production
(Note)
To improve the
technology of
silicon wafer
reclaim process		 1. To improve the wafer-
polishing technology
2. To improve the wafer-
cleaning technology		 Under
development		 2025 1.
Being
experienced
in
process
optimization, the Company is able to
design the most effective inspection
tools
tailored
to
customers’
requirements.
2.
Possessing
the
capability
to
independently
develop
cleaning
equipment, the Company is able to
design the cleaning equipment fit for
the characteristics of current process,
thus achieving the optimal results.
3. With its process technology and the
quality thereof highly regarded by
customers,
SCIENTECH
was
entrusted by customers to develop the
most advancedproducts.

Note: The said estimated time for mass production is exclusively for the R&D plan. The actual product mass production time is subject to the demands of the market and customers.

  1. Effect of changes in important laws and policies at home and abroad on the Group's financials and business affairs, and measures to be taken in response:

  2. In the most recent year and in the current year up to the publication of this annual report, there was no change in important laws or policies at home and abroad which is able to significantly impact the Group’s financials or business affairs.

  3. Effect of technological changes (including cyber-security risks) and industrial changes on the Group’s financials and business affairs, and measures to be taken in response.

The Company has been attaching importance to the improvement in R&D capability in order to embrace the challenges accompanied by technological changes. In the most recent year and in the current year up to the publication of this annual report, there was no technological change or industrial change which is able to significantly impact the Group’s financials or business affairs. The Company values the management of cyber-security risks, in that it passed the ISO 27001 certification in October 2019 that the certification is valid from Nov. 20, 2022 to Nov. 19, 2025. In addition, the Company reports to the Board of Directors on the implementation of information security management every year, hoping to mitigate cyber-security risks and thereby ensure the security of Company’s operations.

  1. Effect of changes in corporate image on corporate crisis management, and measures to be taken in response:

In the most recent year and in the current year up to the publication date of this annual report, there was no occurrence of events that are significant enough to effect a change in the Group’s corporate image.

135

  1. Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken: None.

  2. Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken:

In the most recent year and in the current year up to the publication date of this annual report, the Group purchased land and plants in Tainan, mainly to set up the Tainan Office to serve customers in southern Taiwan, and to prepare for potential expansion of the southern factory. It is expected that the production capacity and sales amount of self-made equipment will increase; self-made equipment is the main business of the Company, and it is an expansion plan in response to market supply and demand, and the funds are self-owned funds, so the risks are still within the controllable range.

  1. Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken:

  2. In 2024 and in 2025 Q1, the Group’s sales to TSMC accounted for 21.02% and 27.28%, respectively, of total sales; judging from the percentage, sales were relatively concentrated. This is mainly because TSMC is a leading semiconductor giant whose demands for semiconductor equipment and wafer reclaim service have always been immense. In this respect, the Group’s concentration of sales to TSMC is a normal supply and demand phenomena in the industry. The Group has managed to develop products for the various industries, e.g., semiconductor, optoelectronics, solar energy, so as to reduce its sales concentration. In the most recent year and in the current year up to the publication date of this annual report, the Group’s purchase exhibited no sign of concentration.

  3. Effect upon and risk to the Group in the event a major quantity of shares belonging to a director, supervisor, or shareholder holding greater than a 10 percent stake in the Group has been transferred or has otherwise changed hands, and mitigation measures being or to be taken.

In the most recent year and in the current year up to the publication date of this annual report, the Group did not see any of its directors or major shareholders whose shareholding in the Group is more than 10% have a substantial amount of the Group’s shares transferred or change hands.

  1. Effect upon and risk to the Company associated with any change in management rights

  2. In the most recent year and in the current year up to the publication date of this annual report, the Group did not see its management rights changed.

  3. Litigious and non-litigious matters

In the most recent two years and in the current year up to the publication date of this annual report, the Group did not encounter any major litigious, non-litigious, or administrative disputes which have been concluded by means of a final and unappeasable judgment, or are still under litigation; and might lead to a consequence that would significantly impact the Group’s financials and business affairs.

  1. Other important risks, and mitigation measures being or to be taken.

In terms of information security assessment, the Company has formulated the Information Security Management Policy to govern matters relating to information security within the Company. In

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addition, the Company also introduced the ISO27001 Information Security Management System in October 2019 and obtained the ISO 27001:2013 in October 2019 in order to ensure the effectiveness and compliance of each management system. So far the Company does not have any material operating risks.

VII. Other important matters: None.

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Six. Special Items

I. Information on affiliates

  • (I) Consolidated business report of associates:

Please refer to the website of Market Observation Post system/ Basic Information/

E-Book/Affiliated Enterprises Tri-Party Reports Area. 

https://mopsov.twse.com.tw/mops/web/t57sb01_q10

  • (II) Consolidated Financial Statements of Associates

  • Please refer to the website of Market Observation Post system/ E-book/Financial Report/Consolidated Financial Report

https://mopsov.twse.com.tw/mops/web/t57sb01_q1

(III) Business report of associates: None.

II. Private placement of marketable securities in the most recent year and the current year up till the publication date of this annual report

The Company did not conduct any private placement of marketable securities in the most recent year and the current year up till the publication date of this annual report.

III. Other matters that require additional explanation: None.

Seven. Matters Wielding Material Impacts

  • I. If any of the situations listed in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act, which might materially affect shareholders' equity or the price of the company's securities, have occurred during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None.

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